Key Concept: Real-World Application, Advanced Formula Application
c) \$8,400.5
[Solution Description]
To calculate the mean deviation about the median salary, we follow these steps:
1. Determine the median interval using cumulative frequency:
The total number of employees is $$5 + 10 + 15 + 20 = 50$$.
The median position is $$\frac{50+1}{2} = 25.5$$.
2. Identify the median class:
Accumulating the frequencies, we get:
– Up to 40,000, there are 5 employees.
– Up to 50,000, there are 5 + 10 = 15 employees.
– Up to 60,000, there are 15 + 15 = 30 employees.
Therefore, the median class is 50,001-60,000.
3. Use the formula for the median in a grouped data set:
$$\text{Median} = L + \left( \frac{\frac{N}{2} – F}{f} \right) \times h$$
where $$L$$ is the lower boundary of the median class, $$F$$ is the cumulative frequency before the median class, $$f$$ is the frequency of the median class, and $$h$$ is the class width.
Here, $$L = 50000.5$$, $$F = 15$$, $$f = 15$$, and $$h = 10000$$.
$$\text{Median} = 50000.5 + \left( \frac{25.5 – 15}{15} \right) \times 10000 = 50000.5 + \left( \frac{10.5}{15} \right) \times 10000$$
$$= 50000.5 + 7000 = 57000.5$$
4. Compute absolute deviations from the median for each class midpoint:
– Class 30,000-40,000: Midpoint = 35000, Absolute deviation = |35000 – 57000.5| = 22000.5
– Class 40,001-50,000: Midpoint = 45000, Absolute deviation = |45000 – 57000.5| = 12000.5
– Class 50,001-60,000: Midpoint = 55000, Absolute deviation = |55000 – 57000.5| = 2000.5
– Class 60,001-70,000: Midpoint = 65000, Absolute deviation = |65000 – 57000.5| = 8000.5
5. Calculate mean deviation:
Using frequencies for weighted sum:
Mean Deviation =
$$\frac{(22000.5 \times 5) + (12000.5 \times 10) + (2000.5 \times 15) + (8000.5 \times 20)}{50}$$
$$= \frac{110002.5 + 120005 + 30007.5 + 160010}{50} = \frac{420025}{50} = 8400.5$$
Hence, the mean deviation about the median is \$8,400.5.
Your Answer is correct.
c) \$8,400.5
[Solution Description]
To calculate the mean deviation about the median salary, we follow these steps:
1. Determine the median interval using cumulative frequency:
The total number of employees is $$5 + 10 + 15 + 20 = 50$$.
The median position is $$\frac{50+1}{2} = 25.5$$.
2. Identify the median class:
Accumulating the frequencies, we get:
– Up to 40,000, there are 5 employees.
– Up to 50,000, there are 5 + 10 = 15 employees.
– Up to 60,000, there are 15 + 15 = 30 employees.
Therefore, the median class is 50,001-60,000.
3. Use the formula for the median in a grouped data set:
$$\text{Median} = L + \left( \frac{\frac{N}{2} – F}{f} \right) \times h$$
where $$L$$ is the lower boundary of the median class, $$F$$ is the cumulative frequency before the median class, $$f$$ is the frequency of the median class, and $$h$$ is the class width.
Here, $$L = 50000.5$$, $$F = 15$$, $$f = 15$$, and $$h = 10000$$.
$$\text{Median} = 50000.5 + \left( \frac{25.5 – 15}{15} \right) \times 10000 = 50000.5 + \left( \frac{10.5}{15} \right) \times 10000$$
$$= 50000.5 + 7000 = 57000.5$$
4. Compute absolute deviations from the median for each class midpoint:
– Class 30,000-40,000: Midpoint = 35000, Absolute deviation = |35000 – 57000.5| = 22000.5
– Class 40,001-50,000: Midpoint = 45000, Absolute deviation = |45000 – 57000.5| = 12000.5
– Class 50,001-60,000: Midpoint = 55000, Absolute deviation = |55000 – 57000.5| = 2000.5
– Class 60,001-70,000: Midpoint = 65000, Absolute deviation = |65000 – 57000.5| = 8000.5
5. Calculate mean deviation:
Using frequencies for weighted sum:
Mean Deviation =
$$\frac{(22000.5 \times 5) + (12000.5 \times 10) + (2000.5 \times 15) + (8000.5 \times 20)}{50}$$
$$= \frac{110002.5 + 120005 + 30007.5 + 160010}{50} = \frac{420025}{50} = 8400.5$$
Hence, the mean deviation about the median is \$8,400.5.