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Acorporation operates ve manufacturing plants in a region. The company tracks the medical costs that are directly attributed to accidents that occur at the plants
Acorporation operates ve manufacturing plants in a region. The company tracks the medical costs that are directly attributed to accidents that occur at the plants each year. The following data show the medical costs (in dollars] at each plant for the most recent year along with the number of employees who work at each plant. Complete parts a and b. Medical Cost $i'j'53 $14639 $12258 $5.523 $3.393 Employees 129 400 255 105 64 a. Compute the weighted average for the annual medical costs at the ve plants using the numbers ofemployees as the weights. The weighted average is S . {Round to the nearest dollar as needed.) b. Explain why the company would want to use a weighted average in this situation rather than a simple average ofthe five medical cost values. [:1 A. The weighted average takes into account both the mean and the median of the data. instead of only providing the simpler measure of only the mean. [:1 B. The weighted average takes into account the numbers of employees and is a more reasonable measure of the average payments than would be an unweighted average. [:1 C. The weighted average takes into account the variation in the data instead ofonlyr providing a measure of central tendency. [:1 D. The weighted average takes into account extreme values and is therefore a more reasonable measure of the average payments than would be an un-weighted average
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