ECON2300
Homework 5
1. (MGH Ch3 Exercise 16) The following are the ages of the 10 people in the Java Coffee Shop at the Southwyck Shopping Mall at 10 a.m. Compute the mean, median, and mode.
21, 41, 20, 23, 24, 33, 37, 42, 23, 29
2. (MGH Exercise 22) Big Orange Trucking is designing an information system for use in “in-cab” communications. It must summarize data from eight sites throughout a region to describe typical conditions. Compute an appropriate measure of central location for the variables wind direction, temperature, and pavement.
3. The Fair Isaacs Corporation has devised a model that is used to determine creditworthiness of individuals, called a FICO score. FICO scores range in value from 300 to 850, with a higher score indicating a more creditworthy individual. The distribution of FICO scores is skewed left with a median score of 723.
(a) Do you think the mean FICO score is greater than, less than, or equal to 723? Justify your response.
(b) What proportion of individuals have a FICO score above 723?
4. We have all heard of the Old Faithful geyser in Yellowstone National Park. However, there is another, less famous, Old Faithful geyser in Calistoga, California. The following data represent the length of eruption (in seconds) for a random sample of eruptions ofthe California Old Faithful. Determine the shape of the distribution of length of eruption by drawing a frequency histogram. Find the mean and median. Which measure of central tendency better describes the length of eruption?