When Data Are Summarized in a Frequency Distribution, the Median

question 42

Short Answer

When data are summarized in a frequency distribution, the median can be found by first identifying the median class (the class that contains the median). We then assume that the values in that class are evenly distributed and we can interpolate. This process can be described by $$\text { median } = ( \text { lower limit of median class } ) + ( \text { class width } ) \left( \frac { \frac { \mathrm { n } + 1 } { 2 } - ( \mathrm { m } + 1 ) } { \text { frequency of median class } } \right)$$ where n is the sum of all class frequencies and m is the sum of the class frequencies that precede the median class. Use this procedure to find the median of the frequency distribution below:

$$\begin{array} { c | c } \text { Score } & \text { Frequency } \\\hline 50 - 59 & 21 \\60 - 69 & 24 \\70 - 79 & 25 \\80 - 89 & 17 \\90 - 99 & 13\end{array}$$

A) 71.6
B) 74.5
C) 71.8
D) 72.2

• A) 71.6
• B) 74.5
• C) 71.8
• D) 72.2

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Definitions:

Financialization

A trend in which financial services, such as investment, become a more dominant sector in the national economy, influencing societal and economic structure.

Value Maximization

Refers to strategies aimed at increasing the overall value and performance of a company, maximizing shareholder wealth.

Capital Investment

Funds spent by a business to acquire or upgrade physical assets such as property, industrial buildings or equipment.

ESOPs

Employee Stock Ownership Plans, which are employee benefit plans giving workers ownership interest in the company, usually as a form of retirement benefit.