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
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:
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)|
|More than 60||66.5||0.07||4.655||309.5575|
Therefore , the expected lease term in months is ,
Therefore , the standard deviation is ,
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