Eight health maintenance organizations (HMOs) presented group health insurance plans to a company. The monthly rates per employee were $430, $398, $405, $387, $424, $353, $410 and $435. Calculate the mean and the median monthly rates for these eight companies.
A) Mean: $410.25; median: $410.50
B) Mean: $407.25; median: $408.50
C) Mean: $405.25; median: $407.50
D) Mean: $404.25; median: $409.50
E) Mean: $408.25; median: $406.50

Question

Quizplus · Accepted Answer

The mean is calculated by summing all the rates and dividing by the number of rates: (430 + 398 + 405 + 387 + 424 + 353 + 410 + 435) / 8 = 405.25. The median is the average of the two middle numbers in the ordered list (353, 387, 398, 405, 410, 424, 430, 435), which are 405 and 410, so (405 + 410) / 2 = 407.50.

Eight Health Maintenance Organizations (HMOs) Presented Group Health Insurance Plans