Question

A small accounting firm has 4 accountants who each earn a different salary between $50,000,and $60,000 and a 5th accountant who works part-time for tax season and earns $10,000 The firm decides to get rid of the part-time accountant and keep the other 4 salaries the same. How will getting rid of the part-time accountant affect the mean and median? Choose 1 answer. A.Both the mean and median will increase, but the median will increase by more than the mean. B.Both the mean and median will increase, but the mean will increase by more than the median. C.The mean will increase, and the median will decrease. D.The median will increase, and the mean will decrease.

Answer 1

Step-by-step explanation:

Assume the 4 accountants earn the following salaries;

$50,000, $53,000 $55000 and $60,000

The mean will be : sum of earnings /number of accountants

Mean= $ (50,000+53,000+55,000+60,000)/4 =54500

The median in the center value

$50,000, $53,000 $55000,$60,000

Median = ($53000+$55,000)/2

Median= $54000

Hiring a 5th accountant, then

Mean will be $(54,500+10,000)/2 = 64500/2 = $32,250

Median will be: $10,000,$50,000, $53,000 $55000,$60,000 = $53,000

You notice that the mean decreased from $54500 to $32,000

The median also decreased from $54,000 to $53,000