The market research department of the National Real Estate Company conducted a survey among 500 prospective buyers in a suburb of a large metropolitan area to determine the maximum price a prospective buyer would be willing to pay for a house. From the data collected, the distribution that follows was obtained. Maximum Price Considered, x (in thousands of dollars) P(X = x) 480 15 500 490 20 500 500 75 500 510 80 500 520 75 500 550 90 500 580 95 500 600 45 500 650 5 500 Compute the mean, variance, and standard deviation of the maximum price x that these buyers were willing to pay for a house. (Round your answer for standard deviation to the nearest dollar.) mean __dollars variance __dollars2 standard deviation __dollars
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.
The market research department of the National Real Estate Company conducted a survey among 500 prospective buyers in a suburb of a large metropolitan area to determine the maximum price a prospective buyer would be willing to pay for a house. From the data collected, the distribution that follows was obtained.
| Maximum Price Considered, x (in thousands of dollars) |
P(X = x)
|
||
|---|---|---|---|
| 480 |
|
||
| 490 |
|
||
| 500 |
|
||
| 510 |
|
||
| 520 |
|
||
| 550 |
|
||
| 580 |
|
||
| 600 |
|
||
| 650 |
|
Compute the mean, variance, and standard deviation of the maximum price x that these buyers were willing to pay for a house. (Round your answer for standard deviation to the nearest dollar.)
| mean | __dollars |
| variance | __dollars2 |
| standard deviation | __dollars |
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