A survey of households included a question about the number of operating automobiles N currently owned by

Question:

A survey of households included a question about the number of operating automobiles N currently owned by people living at the residence and the interest rate i on the lowest-rate loan for the cars. The results for 100 households are shown.

Number of Cars N             Households

0 ..............................                    12

1 ..............................                    56

2 ..............................                    26

3 ..............................                      3

≥4 ..............................                    3

Loan Rate i, %                 Households

0.0–2 ..............................            13

2.01–4 ............................            14

4.01–6 ............................            19

6.01–8 ............................            38

8.01–10 ..........................            12

10.01–12........................              4

(a) State whether each variable is discrete or continuous.

(b) Plot the probability distributions and cumulative distributions for N and i.

(c) From the data collected, what is the probability that a household has 1 or 2 cars? Three or more cars?

(d) Use the data for i to estimate the chances that the interest rate is between 7% and 11% per year.


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

Question Posted: