BUEC 232 Summer 2013
Data and Decisions I Lorene Linklater
Problem Set – Lecture 2
Note: This problem set is NOT to be submitted for grading. The questions are for practice
1. You are the Business Manager for the International Brotherhood of Projectionists. In recent
years, technology has changed the job from a skilled position to one of general labour. Your
contract is up for renegotiation and you collect the following data – (note the very highest
wages are due to long hours worked by projectionists in large multi-screened theaters).
$19,000 $25,000 $95,000 $28,000 $77,000
$30,000 $20,000 $86,000 $25,000 $16,000
(a) Calculate the mean, median and mode for the wages.
(b) If you were the business manager for the union which number would you use –the mean or
the median, as a measure of the ‘average’ wage earned by a projectionist? Why?
(c) If you were the lead negotiator for management which number would you use as a measure
of the ‘average’ wage earned by projectionists? Why?
(d) Which measure best describes the wages of a typical projectionist? Why?
(e) Interpret the median using the words of the problem.
2. The price per share of Nuke Power Co. was
(a) If an investor bought 1,000 shares at the market price each quarter, calculate the average
price per share. (Ignore commissions and taxes)
(b) If an investor bought $5,000 worth of this stock each quarter what would be the average
price per share after four quarters? Why are the answers to (a) and (b) different?
3. You are purchasing manager for Superstar Gas a medium size independent chain of gas
stations in the lower mainland. The company purchases gasoline wholesale on the spot market
and has made the following purchases in January:
Date Amount purchased Purchase price per liter
January 5th 10,000 liters $0.92
January 12th 10,000 liters $0.96
January 19th 18,000 liters $1.01
January 26th 30,000 liters $1.06
Page 1 of 2 BUEC 232 Summer 2013
Data and Decisions I