Question

so confused. help please

Chapter 3: Business 210 Statistics Weighted Mean Handout: read about Weighted Mean in book on pages 64-65 and then look this problem over. Here is a sample of raw material purchases by Acme Manufacturing over the past year: Purchase Cost Per Pound (5) Number of Pounds 3.00 3.40 2.80 2.90 3.25 1200 500 2750 1000 800 Your manager wants you to calculate the mean cost per pound of these raw materials. You could calculate the Arithmetic Mean by calculating the sample mean cost per pound (x bar). Do this by adding the 5 cost values and dividing by 5 to get $3.07 per pound. However this would not be correct because you failed to account for the weighting... the number of pounds purchased at each cost. Thus, you will need to calculate the weighted Mean cost of the materials by using formula 3-3 on page 64. In the numerator you calculate 3.00 (1200) + 3.40 (500) + 2.80 (2750) + 2.90 (1000) + 3.25 (800) and get $18,500. In the denominator you add up all the pounds purchased and get 6,250 pounds. Then divide $18,500 by 6,250 and get a Weighted Mean of $2.96 per pound. This is the correct value and you have Just done a weighted mean problem... M. Cicero ps-work it yourself below if you want some practice.

Answer 1

A5:- Suppose, there are 2 types of chocolade - A and B mal 8 cost $2 each A and B. A cost $1 each If you € 5 chocolates of A and 10 chocolates of B. Hous capcotes of B. How onuch each chocolate cost you? .. If you say cost of A is $) and cost of B is $2 . Therefore, average cost is $1.5. ( 11 That is wrong) This is om example of welghted mean. Sparce we bought 5 chocolates of A.we spent $1*5 = $5 amord cue bought 10 chocolates of B woe sperrt = $2 x 10 = $ 2°. - Total money we spent = $5 + $ 20 - 25. ni Totel chocolates we bought = 5+10=15. a Avercege cost = Totell money spent = 25.5 - 167 doll.com - Total chocolates bought Some concept you have to apply on your question per chocolate Sample mean cost = 3% 1200 + 304 x 500 +2.8 x 2750 +2.9 x1000+3,25 * 800 1200 + 500 + 2750 +1000 + 800 78500 - $2.96 per pound, 6250 Cs Scanned with CamScanner