Purchase Solution

Histograms, normal distributions, means, variances

Not what you're looking for?

Ask Custom Question

Rent Resident: Amount of monthly profit from residential rent homes

There is a data file attached.

Rent Commercial: Amount of monthly profit from rent paid on commercial buildings.

A realtor owns numerous residential and commercial buildings and collects rent on these properties. The realtor selects 100 months over the past several years and lists the monthly profit in thousands of dollars for these properties. These values are listed in the variables Rent REsident and Rent Commercial, in thousands of dollars.

1. Plot a histogram of the data in rent resident and also of the data in rent commercial. Would you say that the data are approximately normally distributed? Find the mean and variance for each of the variables.

2.What type of distribution do you believe the sum of the rentresident and rentcommercial would have. What do you think the resulting mean and variance would be.

3. Plot a histogram of the sum of the RentResident and RentCommercial. Does the distribution appear to be approximately normally distributed? Find the mean and variance. Compaare these results to your answers in part 2. Is the variance of the sum equal to the sum of the variances?

Attachments
Purchase this Solution
Solution Summary

Creating histograms and calculating means and variances.

Solution Preview

1. Histograms of all three distributions are included on the attached Word document. In each case the data are approximately normally distributed. I used Excel to calculate the mean and standard ...

Purchase this Solution
Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

View More Free Quizzes
Related BrainMass Solutions

  • Symmetrical Distributions

    By these symmetric histograms, we know that the means of A,B,C and D are 6,6,8,7, respectively. Now we want to compare their variances. By the definition of variances, we need to find the total deviation to their mean.

  • Distributions

    13154 Distributions for Respective Means Four distributions, labeled (a), (b), (c), and (d), are represented below by their histograms. Without performing any calculations, order the respective means , , , and of the distributions.

  • Central Limit Theorem/Sampling Distribution

    To make histograms in Excel, you first have to make frequency distributions. Then make bar charts with the intervals on the x-axis and the frequencies on the y-axis. You are supposed to make histograms using sample means as your data.

  • Difference in variability and P value

    followed normal distributions, it is appropriate to use the pooled-variance t-test to compare the means of the customer waiting times for the two branches which requires the assumption of equal variances (this assumption is justified by the result

  • Distribution of the difference of two sample means.

    have normal distributions with a known mean and known variances.

  • CENTRAL THEOREM

    Construct Histograms using a very small sampling distribution of sample means (sample size of 3) and a larger sampling distribution of sample means (sample size of 30).

  • Basic Concepts in Probability Distributions

    The total area beneath the PDF of a continuous random variable will be equal to 1 False QUESTION 9 Normal distributions differ only in their means and variances.

  • Predicting Annual Precipitation.

    variances.

  • Deciding whether to use a z test or a t test

    • the distributions should be normal if n is low, however if n is fairly large the distribution of the data does not have to be normal • The variances of the samples should be the same • All individuals must be selected using Simple random sampling

View More Related Solutions