The monthly rents (in dollars) paid by 9 people are given below. (Note that these are already ordered from least to greatest.)

[tex]\[ 835, 930, 965, 990, 1000, 1015, 1075, 1105, 1130 \][/tex]

Suppose that one of the people moves. His rent changes from [tex]\(\$ 1130\)[/tex] to [tex]\(\$ 1040\)[/tex]. Answer the following.

\begin{tabular}{|l|l|}
\hline
(a) What happens to the mean? &
- It decreases by [tex]\(\$ \square\)[/tex]. \\
&
- It increases by [tex]\(\$ \square\)[/tex]. \\
&
- It stays the same. \\
\hline
(b) What happens to the median? &
- It decreases by [tex]\(\$ \square\)[/tex]. \\
&
- It increases by [tex]\(\$ \square\)[/tex]. \\
&
- It stays the same. \\
\hline
\end{tabular}



Answer :

Let's analyze the given situation step-by-step to determine how the changes in rent affect the mean and median.

### Step (a): Effect on the Mean
1. Original Data: The monthly rents paid by the 9 people are:
[tex]\[ 835, 930, 965, 990, 1000, 1015, 1075, 1105, 1130 \][/tex]

2. Calculating Original Mean:
To find the mean, sum up all the rents and divide by the number of people.
[tex]\[ \text{Sum of rents} = 835 + 930 + 965 + 990 + 1000 + 1015 + 1075 + 1105 + 1130 = 9045 \][/tex]
[tex]\[ \text{Number of people} = 9 \][/tex]
[tex]\[ \text{Original mean} = \frac{9045}{9} = 1005.0 \][/tex]

3. New Data: One person's rent changes from \[tex]$1130 to \$[/tex]1040. The new rents are:
[tex]\[ 835, 930, 965, 990, 1000, 1015, 1075, 1105, 1040 \][/tex]

4. Calculating New Mean:
Adjust the sum of the rents by subtracting the old rent and adding the new rent:
[tex]\[ \text{New sum of rents} = 9045 - 1130 + 1040 = 8955 \][/tex]
[tex]\[ \text{New mean} = \frac{8955}{9} = 995.0 \][/tex]

5. Change in Mean:
The mean decreases from 1005.0 to 995.0.
[tex]\[ \text{Change in mean} = 1005.0 - 995.0 = 10.0 \][/tex]

So, the mean decreases by \[tex]$10.0. ### Step (b): Effect on the Median 1. Original Data: The ordered rents are the same as given initially. \[ 835, 930, 965, 990, 1000, 1015, 1075, 1105, 1130 \] 2. Calculating Original Median: For an odd number of observations, the median is the middle number. The 5th rent (middle of 9) is: \[ \text{Original median} = 1000 \] 3. New Data: The new ordered rents after one person changes their rent: \[ 835, 930, 965, 990, 1000, 1015, 1075, 1105, 1040 \] Sorting the new rents: \[ 835, 930, 965, 990, 1000, 1015, 1040, 1075, 1105 \] 4. Calculating New Median: Again, for an odd number of observations, the median is the middle number. The 5th rent (middle of 9) remains: \[ \text{New median} = 1000 \] 5. Change in Median: The median does not change. \[ \text{Change in median} = 1000 - 1000 = 0 \] So, the median stays the same. ### Summary - Effect on Mean: The mean decreases by \$[/tex]10.0.
- Effect on Median: The median stays the same.

Thus, filling out the table:

\begin{tabular}{|l|l|}
\hline (a) What happens to the mean? & O It decreases by [tex]$\$[/tex] 10.0[tex]$. \\ & It increases by $[/tex]\[tex]$ \square$[/tex]. \\
& It stays the same. \\
\hline (b) What happens to the median? & O It stays the same. \\
& It decreases by [tex]$\$[/tex] \square[tex]$. \\ & It increases by $[/tex]\[tex]$ \square$[/tex]. \\
\hline
\end{tabular}