parisinsen
Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Over a 5-year period, a company reported annual profits of $8 million, $3 million, $2 million, and $9 million. In the fifth year, it reported a loss of $7 million. What was the mean annual profit?

Sagot :

Given

Annual profits of four years $8 million, $3 million, $2 million, and $9 million.

In the fifth year, it reported a loss of $7 million.

To find:

The mean annual profit.

Solution:

Formula for mean is:

[tex]\text{Mean}=\dfrac{\text{Sum of observations}}{\text{Number of observations}}[/tex]

Annual profits are $8 million, $3 million, $2 million, $9 million and -$7 million. Here negative sign represent loss.

So, the mean annual profit is:

[tex]\text{Mean}=\dfrac{8+3+2+9+(-7)}{5}[/tex]

[tex]\text{Mean}=\dfrac{22-7}{5}[/tex]

[tex]\text{Mean}=\dfrac{15}{5}[/tex]

[tex]\text{Mean}=3[/tex]

Therefore, the  mean annual profit is $3 million.

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.