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Imagine that a sample of 400 rental units shows that (i) the distribution of rents paid per month is not described by a normal distribution,
(ii) that the mean rent of the sample is $755, and (iii) the standard deviation of the sample is $100.
a) Without seeing the distribution, can you calculate the probability that the rent of a randomly selected unit will be greater than $800? If yes, calculate the probability; if no, explain.
b) Without seeing the distribution, can you calculate the probability that the mean rent of another sample of 400 units will be greater than $800? If yes, calculate the probability; if no, explain.
c) Why is the answer to (b) only an estimate? (What two numbers about the entire population are you not sure of?)
Shipping costs on Merchandise sold--it is a variable cost, but is it a selling/adminstrative cost or product cost? Is it direct or indirect?
It is a numerical average, as equal to the sum of terms in a given series divided by the number of terms in that series is the mean which is also called the expected value.
Answers & examples of accounting for the follow on the file being sent to you.
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The poll interviewed 1500 persons rather than 1060, for 95% confidence.
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