Eight health maintenance organizations (HMOs) presented group health insurance plans to a company. The monthly rates per employee were $422, $394, $406, $399, $425, $356, $403, and $427. Calculate the mean and the median monthly rates for these eight HMOs.
A) Mean: $404; median: $404
B) Mean: $404; median: $404.5
C) Mean: $404.5; median: $404
D) Mean: $404.5; median: $404.5
E) Mean: $808; median: $404.5

Question

Quizplus · Accepted Answer

The mean is calculated by summing all the rates and dividing by 8, which gives $404. The median is the average of the 4th and 5th values when the rates are ordered, which gives $404.5.

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