Question

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 term in months:

standard deviation:

Answer #1

The mid point is given by ,

mid point (X) = (Upper class limit + Lower class limit ) / 2

The table given below ,

Lease length in months | Mid points(X) | Percent of Leases P(X) | X*P(X) | X^2*P(X) |

13-24 | 18.5 | 0.157 | 2.9045 | 53.73325 |

25-36 | 30.5 | 0.373 | 11.3765 | 346.9833 |

37-48 | 42.5 | 0.25 | 10.625 | 451.5625 |

49-60 | 54.5 | 0.213 | 11.6085 | 632.6633 |

More than 60 | 66.5 | 0.07 | 4.655 | 309.5575 |

Sum | 41.17 | 1794.5 |

Therefore , the expected lease term in months is ,

Now ,

Therefore , the standard deviation is ,

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...

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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