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A drug manufacturer has hundreds of sales representatives all over the United States. A histogram for yearly sales totals for each representative is roughly bell shaped and symmetric except for 4 high outliers corresponding to representatives in Boston, MA. Their sales totals are at least $60,000 greater than the next highest total. One analyst suggests dropping these 4 totals from the data to get a better summary of the sales across all regions of the country.

(a) If the outliers were to be dropped, which measure of central tendency of the data set would be a ected the most { the mean, the median, or the mode? Explain why.
(b) The high outliers are dropped from the data and the mean is determined to be $70,000 with a standard deviation of $8,000. For future analysis, management would like to be able to identify sales amounts that are unusually low", which they de ned as being among the lowest 2.5% of all sales amounts. Using the Empirical Rule for this data, what amount should be considered the cut-off for sales amounts being classi ed as unusually low?

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  • Category:- Statistics and Probability
  • Reference No.:- M9435689

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