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Question: The net worth (in millions of dollars) of 30 business units in a city are shown in the frequency distribution.
Net worthFrequency
15 - 253
26 - 3610
37 - 4712
48 - 585
Find the mean and the mode of the data and compare them.


A ) 38, 37, mean > mode
B ) 284.75, 284.75, mean = mode
C ) 37.97, 42, mean < mode
D ) 284.75, 37, mean > mode

Steps to derive

1 The midpoint of each class (net worth) and the product with the frequency is as shown in the table.


2 Mean (X) = 1n f X = 113930 = 37.97
 [Use n = f.]

3 The modal class is 37 - 47, since it has the largest frequency. The mode of the date is 37+472 = 42.

4 The mean of the net worth (in millions of dollars) of 30 business units is 37.97 and the mode of the data is 42.

5 So, mean < mode.
 [Compare the values of mean and mode.]



Hence the right answer is Option C

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