Answered: A financial company has researched on…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.3: Measures Of Spread

Problem 1GP

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A financial company has researched on its issued credit card. The company wants to estimate the mean average expenditure of the issued credit card. The data is collected for each month and is presented below. 191.21/198.26/243.62/165.93/195.08/259.11/134.27/227.26/311.87/153.91/299.53/187.80 a. Find 95 percent confidence interval of the mean expenditure and interpret the result b. Find 95 percent confidence interval for the standard deviation of the expenditure and interpret the result. c. The company assumes that if the mean expenditure exceeds 250 monetary unit of expenditure, it could show a higher potential of expenditure for the month. Find 95 percent confidence interval of portion and interpret the result.

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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