Let's say we observe willingness to pay (WTP) of consumers and collect the following WTPs from a survey: 3,5,2,6,6,4,9,5,2,1,5,4,6,7,8,9,8,0,5,4,5,6,7,8,10.

1. Assume this is a sample drawn from the population. What is its mean and variance? Show the steps to standardize the WTP. List the original and standardized values of WTP in two columns. Report the mean and variance of the standardized variable.

2. Assume the observed values of WTP isthe population and not the sample. What is its mean and variance? Show the steps to standardize the variable WTP. Report the mean and variance of the standardized variable.