On January 1, 2021, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2021 and 2022, 25,000 and 84,000 units, respectively, were produced. Required: Compute depreciation for 2021 and 2022 and the book value of the drill press at December 31, 2021 and December 31, 2022, assuming the straight-line method is used.

solution:

as, mean is defined as sum of all the observations divided by total number of observations.

and , median is mid value of the data whether arranged in ascending order or descending order.

consider, roadsters:

2,3,4,5,6,7,8,9

mean =

also, median= , because number of observations is even, so median is mean of two mid values.

now, coming to bandits

2,3,4,5,6

mean =  

median = 4, as number of observations is odd.

so, roadsters has greater median as well mean than bandits.

→option a is true about the repairs performed on 2 types of cars:

bandits have lower median and mean than roadsters.

answer: what are the following choices