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Question 5
A survey of 100 households gave the following results for weekly income $y$. Income $y$ (£) 0 $\leq y < 200$ 200 $\leq y < 240$ 240 $\leq y < 320$ 320 $\leq... show full transcript
Step 1
Answer
The width of the class 320 can be calculated as follows:
Width = Upper limit - Lower limit = 400 - 320 = 80.
To determine the height, we note that the frequency for this class is 18. The height can be found using the area of the histogram's rectangle:
Area = Width * Height.
We also know that 4 cm represents a frequency of 28, thus:
Height = \frac{\text{Frequency}}{\text{Width}}
Let's calculate the height:
Height = \frac{18}{80} * \frac{4}{28} = \frac{72}{28} = 2.25.
Thus, the width is 80 cm and the height is 2.25 cm.
Step 2
Answer
To find the median, we first locate the cumulative frequency that corresponds to the 50th value. There are 100 households, so the 50th value corresponds to the median position.
Calculating the cumulative frequency:
The median class is 320 to 400.
Using linear interpolation, we find:
Median estimate = L + \left(\frac{\frac{N}{2} - CF}{f}\right) \times c
Where:
Therefore:
Median estimate = 320 + \left(\frac{50 - 42}{18}\right) \times 80 = 320 + \left(\frac{8}{18}\right) \times 80
Calculating: = 320 + 35.56 \approx 355.56, rounded to the nearest pound is 356.
Step 3
Answer
To calculate the mean, use:
Mean = \frac{\sum (f \cdot m)}{N} Where:
Calculating:
[ ext{Mean} = \frac{(100 \cdot 100) + (220 \cdot 8) + (280 \cdot 22) + (360 \cdot 18) + (500 \cdot 12) + (700 \cdot 8)}{100} = \frac{31600}{100} = 316.
]
Next, for standard deviation:
[ \sigma = \sqrt{\frac{\sum (f \cdot (m - \text{mean})^2)}{N}}
]
Calculating for standard deviation:
[ \sum f m^2 = 12 ; 452 ; 800 \text{ (given)}
]
Then:
[ \sigma^2 = (\frac{12 ; 452 ; 800}{100}) - (316)^2 = 124528 - 99856 = 24672. \text{ Therefore,}\sigma \approx 157. \n]
Step 4
Answer
Skewness is measured as:
[ ext{Skewness} = \frac{3(\text{Mean} - \text{Median})}{\text{Standard Deviation}}
]
Substituting the values:
Calculating: [ ext{Skewness} = \frac{3(316 - 356)}{157} = \frac{3(-40)}{157} = -0.764. ]
This indicates a negative skew, which means the data is left-tailed.
Step 5
Answer
Using the normal distribution, we convert the values using the Z-score formula:
[ Z = \frac{X - \mu}{\sigma}
]
Where:
Calculating for lower value (240): [ Z_{240} = \frac{240 - 320}{150} = -0.53. ]
Calculating for upper value (400): [ Z_{400} = \frac{400 - 320}{150} = 0.53. ]
Using the standard normal distribution table:
Step 6
Answer
The skewness calculated in part (d) is negative, indicating that the distribution of income is left-tailed. Katie's suggestion to model the weekly income using a normal distribution centered at 320 and with a standard deviation of 150 does not fully capture the actual income distribution, which is skewed. Moreover, the probability calculated in part (e) shows that there is around a 40% chance of incomes being between 240 and 400, which aligns with the negative skew observed previously. The normal assumption may not hold, hence her suggestion could misrepresent the real-life distributions seen in the data.
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