In the following table, we repeat the salary data in Data Set II from Example 3.1. a.
Question:
a. Use Definitions 3.4 and 3.6 on pages 95 and 105, respectively, to obtain the sample mean and sample standard deviation of this (ungrouped) data set.
b. A frequency distribution for Data Set II, using single-value grouping, is presented in the first two columns of the following table. The third column of the table is for the xf -values, that is, class mark or midpoint (which here is the same as the class) times class frequency. Complete the missing entries in the table and then use the grouped-data formula to obtain the sample mean.
c. Compare the answers that you obtained for the sample mean in parts (a) and (b). Explain why the grouped-data formula always yields the actual sample mean when the data are grouped by using single-value grouping.
d. Construct a table similar to the one in part (b) but with columns for x, f, x - x-bar, (x ˆ’ ¯x)2, and (x ˆ’ x-bar)2f. Use the table and the grouped-data formula to obtain the sample standard deviation.
e. Compare your answers for the sample standard deviation in parts (a) and (d). Explain why the grouped-data formula always yields the actual sample standard deviation when the data are grouped by using single-value grouping.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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