The mean value of land and buildings per acre from a sample of farms is $1600, with a standard deviation of $300. The data set has a bell-shaped distribution. Ass the number of farms in the sample is 76.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Given that
Mean value of land and buildings per acre from a sample of farms is $1600
()=$1600
Standard deviation() = $300
Sample size (n) = 76
Bell shaped distribution (Normal distribution)
We know that
Empirical rule-
68% data lies in one standard deviation away from the mean.
95% data lies in two standard deviations away from the mean.
99.7% data lies in three standard deviations away from the mean.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
