The amount of kerosene used by a typical household in a week (Q, in litres) is found to have a strong correlation with the price of kerosene (P, in S). For 6 observations, the following data was collected: Q P 11.4 4.00 14 3.50 16 3.00 18 2.50 20 2.00 22 1.50 (d) Calculate the price elasticity of demand for kerosene at a price of $3.75 (e) Using a further calculation, discuss how well the regression equation fits the data. (f) Discuss whether the relationship between the price and quantity could be due to the income effect, the substitution effect, or both.
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.
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