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Statistics - Effect of change on mean and median

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Please help with the following problems. Provide a detailed explanation for each question.

a. The firm in question 4 gives no raises to the clerks and junior accountants, while the owner's take increases to $455,000. How does this change affect the mean? How does it affect the median?

b. A discussion of extreme weather reports that: "In most states, hurricanes occur infrequently. Yet, when a hurricane hits, the losses can be catastrophic. Average annual losses are not a meaningful measure of damage from rare but potentially catastrophic events," Why is this true?

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This posting involves descriptive statistics. A Complete, Neat and Step-by-step Solution is provided on questions regarding the effect of change on mean and median.

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a. The firm in question 4 gives no raises to the clerks and junior accountants, while the owner's take increases to $455,000. How does this change affect the mean? How does it affect the median?

The new mean = (5 * 25000 + 2 * 60000 + 1 * 455000)/(5 + 2 + 1) = $87500

The ...

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