Question

Consumer Banker Association released a report showing the lengths of automobile leases for new automobiles. The results are as follows.

Lease Length in Months | Percent of Leases |

13-24 25-36 37-48 49-60 More than 60 |
14.8% 35.8% 28.9% 19.8% 0.7% |

(a) Use the midpoint of each class, and call the midpoint of the last class 66.5 months, for purposes of computing the expected lease term. Also find the standard deviation of the distribution. (Round your answers to two decimal places.)

expected lease term | months |

standard deviation |

Answer #1

X P(x) x*P(x) x^2*P(x)

17.5 0.148 2.59 45.33

30.5 0.358 10.92 333.03

42.5 0.289 12.28 522.01

54.5 0.198 10.79 588.11

66.5 0.07 4.66 309.56

total 41.24 1798.03

mean 41.24

variance 97.50

standard dev 9.87

As,mean = sum of x*px

Variance = sum of x^2*px - mean^2

Standard deviation = sqrt( variance)

Please rate my answer and comment for doubt

Consumer Banker Association released a report showing the
lengths of automobile leases for new automobiles. The results
follow.
Lease Length in Months - Percent of Leases
13-24 15.7%
25-36 37.3%
37-48 25.0%
49-60 21.3%
More than 60 0.7%
Use the midpoint of each class, and call the midpoint of the
last class 66.5 months, for purposes of computing the expected
lease term. Also, find the standard deviation of the distribution.
(Round your answers to the two decimal places.)
expected lease...

Consumer Banker Association released a report showing the
lengths of automobile leases for new automobiles. The results are
as follows.
Lease Length in Months
Percent of Leases
13-24
25-36
37-48
49-60
More than 60
15.4%
36.4%
25.6%
21.9%
0.7%
(a) Use the midpoint of each class, and call the midpoint of the
last class 66.5 months, for purposes of computing the expected
lease term. Also find the standard deviation of the distribution.
(Round your answers to two decimal places.)
expected...

Consumer Banker Association released a report showing the
lengths of automobile leases for new automobiles. The results are
as follows. Lease Length in Months Percent of Leases 13-24 25-36
37-48 49-60 More than 60 12.7% 35.5% 30.7% 20.9% 0.2% Use the
midpoint of each class, and call the midpoint of the last class
66.5 months, for purposes of computing the expected lease term.
Also find the standard deviation of the distribution. (Round your
answers to two decimal places.) expected lease...

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