Numeric For the following exercises, use the median home values in Mississippi and Hawaii (adjusted for inflation) shown in Table 2. Assume that the house values are changing linearly. Year Mississippi Hawaii 1950 $25,200 $74,400 2000 $71,400 $272,700 Table 2 40. If these trends were to continue, what would be the median home value in Mississippi in 2010?
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.
Since the median house values are changing linearly, the increase in the value in 10 years is given by
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