a. Explanation Given info: The mean and standard deviation is $180,000 and $15,000. Calculation: Standard score : The number of standard deviations that the value x lies from the mean μ represents the standard score or z- score. z = Value − Mean Standard deviation = x − μ σ If the z- score falls outside the range –2 to 2 then it is considered as unusual. If the z- score falls outside the range –3 to 3 then it is considered as very unusual. The z-score for $225,000: Here, mean is $180,000, standard deviation is $15,000 and x value as $225,000 b. To determine whether the price $80,000 is unusual or not. c. To determine whether the price $200,000 is unusual or not. d. To determine whether the price $147,000 is unusual or not.

7th Edition

ISBN: 9781323839577

Author: Larson

Publisher: Pearson Custom Publishing

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Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

Chapter 2, Problem 6CQ

To determine

Whether the price $225,000 is unusual or not.

To determine

whether the price $80,000 is unusual or not.

To determine

whether the price $200,000 is unusual or not.

To determine

whether the price $147,000 is unusual or not.

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Chapter 2, Problem 5CQ

Chapter 2, Problem 7CQ

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Whether the price $225,000 is unusual or not.

Solution Summary: The author explains that the z-score for 225,000 is very unusual, since it is 3 standard deviations above the mean price.

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Whether the price $225,000 is unusual or not.

whether the price $80,000 is unusual or not.

whether the price $200,000 is unusual or not.

whether the price $147,000 is unusual or not.

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Chapter 2 Solutions