Invoice Statistics Ba6336
1. **Problem a:** Find the midpoint of the first group 0 - 9.
The midpoint of a group is the average of the lower and upper boundaries.
$$\text{Midpoint} = \frac{0 + 9}{2} = \frac{9}{2} = 4.5$$
2. **Problem b:** Calculate an estimate of the mean cost of an invoice.
We use the midpoint of each group as a representative value and multiply by the frequency, then divide by total frequency.
Midpoints and frequencies:
- 0-9: 4.5, freq = 50
- 10-19: 14.5, freq = 204
- 20-49: 34.5, freq = 165
- 50-99: 74.5, freq = 139
- 100-149: 124.5, freq = 75
- 150-199: 174.5, freq = 62
- 200-499: 349.5, freq = 46
- 500-749: 624.5, freq = 9
Calculate total sum:
$$\sum (\text{midpoint} \times \text{freq}) = 4.5 \times 50 + 14.5 \times 204 + 34.5 \times 165 + 74.5 \times 139 + 124.5 \times 75 + 174.5 \times 62 + 349.5 \times 46 + 624.5 \times 9$$
Calculate each term:
- $4.5 \times 50 = 225$
- $14.5 \times 204 = 2958$
- $34.5 \times 165 = 5692.5$
- $74.5 \times 139 = 10355.5$
- $124.5 \times 75 = 9337.5$
- $174.5 \times 62 = 10819$
- $349.5 \times 46 = 16077$
- $624.5 \times 9 = 5620.5$
Sum all:
$$225 + 2958 + 5692.5 + 10355.5 + 9337.5 + 10819 + 16077 + 5620.5 = 54085$$
Total frequency:
$$50 + 204 + 165 + 139 + 75 + 62 + 46 + 9 = 750$$
Mean estimate:
$$\frac{54085}{750} = 72.1133$$
3. **Problem c:** Calculate an estimate for the median.
Total frequency is 750, so median position is at $\frac{750}{2} = 375$th value.
Cumulative frequencies:
- 0-9: 50
- 10-19: 254
- 20-49: 419
The median lies in the 20-49 group because cumulative frequency reaches 419 which is above 375.
Median formula for grouped data:
$$\text{Median} = L + \left(\frac{\frac{N}{2} - F}{f}\right) \times w$$
Where:
- $L = 20$ (lower boundary of median group)
- $N = 750$ (total frequency)
- $F = 254$ (cumulative frequency before median group)
- $f = 165$ (frequency of median group)
- $w = 30$ (width of median group: 49 - 20 + 1 = 30)
Calculate:
$$\text{Median} = 20 + \left(\frac{375 - 254}{165}\right) \times 30 = 20 + \left(\frac{121}{165}\right) \times 30 = 20 + 0.7333 \times 30 = 20 + 22 = 42$$
4. **Problem d:** Which average, mean or median best represents the data? Give a reason.
The mean is approximately 72.11, the median is 42.
Since the data is skewed by very large values in the higher groups (e.g., 200-499 and 500-749), the mean is pulled upward.
The median better represents the central tendency because it is less affected by extreme values.
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**Summary:**
- Midpoint of 0-9 group: $4.5$
- Estimated mean cost: $72.11$
- Estimated median cost: $42$
- Median best represents the data because it is less affected by skewed high values.