3.The mean of the annual amount British households spend for daily transportation is $6330. Assume that the amount spent is normally distributed. i) Identify the variable of interest here. ii) Suppose 5% of British households spend less than $1000 for daily transportation. What is the standard deviation of the amount spent? iii) What is the range of spending for the 4% of households with the highest daily
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
3. The mean of the annual amount British households spend for daily transportation is $6330.
Assume that the amount spent is
i) Identify the variable of interest here.
ii) Suppose 5% of British households spend less than $1000 for daily transportation.
What is the standard deviation of the amount spent?
What is the range of spending for the 4% of households with the highest daily transportation cost?
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