Question

Question: 1. Prepare a report on the center and spread of data. - Begin by visiting www.edmunds.com (Links ...

1. Prepare a report on the center and spread of data.

- Begin by visiting www.edmunds.com (Links to an external site.) and searching for a used car near you (or make one up):

- In advance, decide what make, model, and year you will search.

- Record the price of 20 of that particular vehicle being offered.

2. Create a histogram of the prices.

- You may use Excel or draw it by hand.

3. Based on the shape of the distribution, decide what measure of center (mean or median) is more appropriate.

- Clearly explain the reasoning for your choice and then calculate both.

- Comment on why the measure of center you chose better describes the data.

4. Repeat step 4 for the spread, deciding between standard deviation and range.

- Clearly explain the reasoning for your choice and then calculate both values.

- Comment on why the measure of spread you chose better describes the data.

5. Comment on whether the numbers you found in steps 4 and 5 are important to consider when shopping for a particular used car.

- Why or why not?

Answer 1

1) we take data from the given website as

2) we create histogram from the above data as,

3) based on the shape of the distribution , the shape is normally distributed but there is outliers in the data. so median is more appropriate.

from excel we find mean and median as,

  =>  =average(select number1,....) and enter button

mean = 16736.95

  => =median(select number1,....) and enter button

median =18446

4) standard deviation is scaled deviation it is better than range and it is a measure that summarises the amount by which every value within a dataset varies from the mean.while The range is the difference between the largest and the smallest observation in the data. so we choose sd

range = 32002 , standard deviation = 8329.403

5) while shopping for a perticular used car we should consider the average price of car is near to median value i.e. = 18446