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question gives S: -2 , 1 , 5 , 8 , n
question asks: 0 < n < 7 ?

Statement 1: median < 5
-------------------------------
the only way the median is less than 5 is if n is located below 5 so that the median is either 1 if n <1 or the median is n if 1<n<5
in both cases n < 5
however, it could be n < 0 .. not suff.

Statement 2: median > 1
------------------------------
the only way the median is larger than 1 is if n is placed above 1 so that the median is 5 if n > 5 or n if 1 < n < 5
in both cases n > 1
however, it could be n > 7 ... not suff.

Statements 1 and 2:
-------------------------
combining: 1 < n < 5
within the range 0 < n < 7 --> so the answer is yes
possible values of n: 2 , 3 , 4