The weights (in kilograms) of a group of crates being shipped to Panama are 95, 103, 110, 104, 105, 112 and92. What is the mean deviation?
Answer(s): B
The mean is 103. The mean deviation is the absolute values of the deviation from the mean: (8 + 0 + 7 + 1 + 2 + 9 + 11)/7 = 38/7 = 5.43
A distribution has a mean of 7 and a range of -100 to +50. The distribution is ________.
Answer(s): D
The range of values is larger to the left of the mean. Hence, the distribution is left-skewed.
The distribution of a sample of the outside diameters of PVC gas pipes approximates a symmetrical, bell- shaped distribution. The mean outside diameter of the sample is 14.0 inches, and the standard deviation is 0.1 inches. About 68 percent of the outside diameters lie between what two amounts?
Answer(s): A
Approximately 68% of observations will lie within plus and minus one standard deviation of the mean.
You borrow $100,000 at a mortgage rate of 8% per year. What's the annual payment you must make to repay the loan in 25 years?
Answer(s): C
If P is the annual payment, then using the annuity formula,100,000 = P/0.08*[1 - 1/1.08^25] = 10.67PThis gives P = $9,368
What are half of the observations always greater than?
By definition, the median is the middle point. It divides the observations into two. The mean is NOT the answer because it may be affected by extreme values.
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