Bike sale The bicycle shop in Exercise 52 will be offer-ing 2 specially priced children’s models at a sidewalk sale. The basic model will sell for $120 and the deluxemodel for $150. Past experience indicates that sales ofthe basic model will have a mean of 5.4 bikes with astandard deviation of 1.2, and sales of the deluxe modelwill have a mean of 3.2 bikes with a standard deviationof 0.8 bikes. The cost of setting up for the sidewalk saleis $200.a) Define random variables and use them to express thebicycle shop’s net income.b) What’s the mean of the net income?c) What’s the standard deviation of the net income?d) Do you need to make any assumptions in calculatingthe mean? How about the standard deviation?
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.
ing 2 specially priced children’s models at a sidewalk
model for $150. Past experience indicates that sales of
the basic model will have a mean of 5.4 bikes with a
standard deviation of 1.2, and sales of the deluxe model
will have a mean of 3.2 bikes with a standard deviation
of 0.8 bikes. The cost of setting up for the sidewalk sale
is $200.
a) Define random variables and use them to express the
bicycle shop’s net income.
b) What’s the mean of the net income?
c) What’s the standard deviation of the net income?
d) Do you need to make any assumptions in calculating
the mean? How about the standard deviation?
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