An insurance company gives a table of insurance payments for 20 clients over the period of one year (the payments are ordered from the smallest to the largest, and measured in dollars):
|
0
|
0
|
220
|
350
|
460
|
|
740
|
810
|
1,100
|
1,350
|
2,350
|
|
2,800
|
3,150
|
3,700
|
4,050
|
4,400
|
|
4,500
|
5,500
|
7,100
|
185,000
|
325,000
|
Determine the median insurance payment.
Without doing any calculations, how do you expect the mean insurance payment to compare to the median insurance payment? Explain.
Use technology to compute the mean of insurance payments.
Did your calculation confirm your prediction from the part (b)? Are the mean and median close to each other? Explain why this makes sense.
If the managers of the insurance company want to advertise either the mean or median insurance payment in order to give the impression that the company pays huge amounts of money to the hospitals for its clients, which (mean or median) should they advertise? Explain.