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Difficulty: EasyBasic Tools of Economic Analysis

An economist compiled a list of daily wages (in Naira) paid to five casual workers in a agricultural processing firm as follows: ₦1,200₦1,200, ₦1,500₦1,500, ₦1,500₦1,500, ₦1,800₦1,800, and ₦2,000₦2,000. What is the modal wage of the workers?

  1. ₦1,500₦1,500Answer
  2. B
    ₦1,600₦1,600
  3. C
    ₦1,800₦1,800
  4. D
    ₦800₦800

Answer

The modal wage is ₦1,500₦1,500.
The modal value of a set of data is the item that occurs most frequently. In the given wage dataset, ₦1,500₦1,500 is listed twice, whereas all other figures appear only once. Therefore, ₦1,500₦1,500 is the modal wage.

Step-by-Step Solution

1
Count the frequency of each wage value in the dataset.
₦1,200₦1,200 appears 11 time; ₦1,500₦1,500 appears 22 times; ₦1,800₦1,800 appears 11 time; ₦2,000₦2,000 appears 11 time.
The mode is the measure of central tendency representing the most frequently occurring value.
2
Identify the value with the highest frequency.
The wage ₦1,500₦1,500 has the highest frequency (22).
A frequency higher than all other observations establishes the mode.

Key Concept

Mode as a Measure of Central Tendency
Estimated Time:45s
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Topics

Basic Tools of Economic Analysis

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