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 11.8% 36.4% 25.3% 26.1% 0.4% (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 (b) Sketch a graph of the probability distribution for the duration of new auto leases. Maple Generated Plot Maple Generated Plot Maple Generated Plot Maple Generated Plot

Answer #1

**Solution:-**

a)

Class interval | Percent lease | Mid-point |

13 to 24 | 11.80% | 18.5 |

25 to 36 | 36.40% | 30.5 |

37 to 48 | 25.30% | 42.5 |

49 to 60 | 26.10% | 54.5 |

More than 60 | 0.40% | 66.5 |

Total | 100.00% |

Class interval | Mid-point (x) | Percent lease(P(x) | x*P(x) | (x - u)^2 | P(x)*(x - u)^2 |

13 to 24 | 18.5 | 0.118 | 2.183 | 401.1208 | 47.33225251 |

25 to 36 | 30.5 | 0.364 | 11.102 | 64.44878 | 23.45935738 |

37 to 48 | 42.5 | 0.253 | 10.7525 | 15.77678 | 3.991526352 |

49 to 60 | 54.5 | 0.261 | 14.2245 | 255.1048 | 66.58234862 |

More than 60 | 66.5 | 0.004 | 0.266 | 782.4328 | 3.129731136 |

Total | 1 | 38.528 | 1518.884 | 144.495216 |

b)

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
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
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 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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