00:01
So these problems can sometimes be tricky because we want to state which one we think is the best measure.
00:09
So the idea of best measure can be challenging because it is somewhat subjective, but there is a little bit of an objectivity to it where we can solidly say that one option is better than another.
00:22
So unfortunately, we don't have the actual compensation data for the ceos.
00:27
But we can do is consider the different averages.
00:35
So this is going to be the mean, the median, the mode, and the mid range.
00:49
So we can calculate this and see what kind of values we end up getting.
00:57
So the mean is going to be the sum of all values divided by the number of values.
01:05
The median is going to be the middle value when data are listed in ascending order.
01:29
Mode is going to be most frequent data value in set.
01:41
And then the mid -range is going to be the lowest value plus the highest value all divided by two.
01:54
So let's say in this case we're given some different dollar amounts.
02:02
So we'll say 17.
02:08
And again, this is going to be in millions of dollars.
02:12
So we have $17 million, $18 million, $24 million, $25 million, $31 million, $31 million, $31 million.
02:35
And then we'll do $18 million again.
02:40
So when we take the mean, we want to add up all these values and then divide it by the number that we have, which is 1, 2, 3, 4, 5, 6.
02:50
So we have 17 plus 18 plus 24 plus 25 plus 31 plus 18, and that whole thing is going to be divided by 6.
03:04
So that ends up giving us a mean of 22 .17 million...