Question

frank is a coffee kind of guy. his coworker asks him where he gets coffee from and he says, “wherever, as long as it is strong.” the following coffee prices were found for a medium sized coffee. starbucks- $4.78, mcdonalds- $2.89, coffee bean- $3.69, dunkin donuts-$4.18, peet’s coffee- $4.65 mean: ____ median: __ mode: ____ essential or discretionary

Explanation:

Step1: Calculate the Mean

First, sum all the prices: \( 4.78 + 2.89 + 3.69 + 4.18 + 4.65 \)
\( 4.78 + 2.89 = 7.67 \)
\( 7.67 + 3.69 = 11.36 \)
\( 11.36 + 4.18 = 15.54 \)
\( 15.54 + 4.65 = 20.19 \)
Then divide by the number of data points (5): \( \frac{20.19}{5} = 4.038 \)

Step2: Calculate the Median

First, order the prices from least to greatest: \( 2.89, 3.69, 4.18, 4.65, 4.78 \)
The median is the middle value. Since there are 5 values, the 3rd value is the median: \( 4.18 \)

Step3: Calculate the Mode

The mode is the value that appears most frequently. All values appear only once, so there is no mode (or we can say no unique mode).

Step4: Determine Essential or Discretionary

Coffee is generally considered a discretionary expense (not essential for survival in the strictest sense, as water, food, shelter are essential; coffee is more of a choice or luxury for many, though some may consider it essential for their daily routine, but typically categorized as discretionary in basic financial contexts).

Answer:

Mean: \( 4.038 \) (or $4.04$ if rounded to the nearest cent)
Median: \( 4.18 \) (or $4.18$)
Mode: No mode (all values occur once)
Essential or Discretionary: Discretionary