A vending machine operator has determined that the number of candy bars sold per week by a certain machine is a random variable with mean 125 and standard deviation 7. He makes $0.25 per bar sold, and it costs him $5.00 per week to maintain the machine and rent the space for it. What are the mean and standard deviation for Y = the profit he earns from this machine in a randomly-selected week? a.Mean = 26.25; Standard deviation = $1.75 b.Mean = 26.25; Standard deviation = -$3.25 c.Mean = 31.25; Standard deviation = -$3.25 d.Mean = 31.25; Standard deviation = $1.25 e.Mean = 31.25; Standard deviation = $1.75
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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