(Q5) A life insurance agent found the following data about distribution of ages of 100 policy holders. Calculate the median age. [Policies are given only to persons having age 18 years onwards but less than 60 years].

Age (in years) Below 20 Below 25 Below 30 Below 35 Below 40 Below 45 Below 50 Below 55 Below 60
Number of Policy holders 2 6 24 45 78 89 92 98 100

Answer :

Age (in years) Number of Policy Holders Cumulative Frequency
Below 20 2 2
Below 25(20-25) 4 6
Below 30(25-30) 18 24
Below 35(30-35) 21 45 cf
Below 40(35-40) (l) 33 f 78
Below 45(40-45) 11 89
Below 50(45-50) 3 92
Below 55(50-55) 6 98
Below 60(55-60) 2 100

The given distribution being of the less than type 25, 30, 35, give the upper limits of corresponding class intervals. So the classes should be 20-25, 25-30, 30-35,....55-60.

Observe that from the given distribution 2 persons with age less than 20.

i.e., frequency of the class below 20 is 2.

Now there are 6 persons with age less than 25 and 2 persons with age less than 20.

∴The number of persons with age in the interval 20-25 is 6-2 = 4.

Similarly, the frequencies can be calculated as shown in table.

Number of observations = 100

n =

n
2
=
2
= , which lies in the class 35-40.

∴ 35-40 is the median class and lower boundary l = 35

cf = 45; h = 5; f = 33

Median = l +
(
n
2
- cf )
f
× h
Median = +
-
×

∴ Median = .7575