Measure of central tendency

A drug manufacturer has hundreds of sales representatives all over the United States. A histogram for yearly sales totals for each representative is roughly bell shaped and symmetric exceptfor 4 high outliers corresponding to representatives in Boston, MA. Their sales totals are at least $60,000 greater than the next highest total. One analyst suggests dropping these 4 totals from the data to get a better summary of the sales across all regions of the country.(a) If the outliers were to be dropped, which measure of central tendency of the data set would beaected the most-the mean, the median, or the mode? Explain why.(b) The high outliers are dropped from the data and the mean is determined to be $70,000 with a standard deviation of $8,000. For future analysis, management would like to be able to identify sales amounts that are unusually low”, which they dened as being among the lowest 2.5% of all sales amounts. Using the Empirical Rule for this data, what amount should be considered the cut-o for sales amounts being classied as unusually low?

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