In: Statistics and Probability
6.5 Suppose the average U.S. household spends $2,100 a year on all types of insurance. Suppose the figures are uniformly distributed between the values of $400 and $3,800. What are the standard deviation and the height of this distribution? What proportion of households spends more than $3,000 a year on insurance? More than $4,000? Between $700 and $1,500?
Let X denotes the spend on a randomly selected U.S. household.
X ~ Uniform(400, 3800)
The probability density function of X is
The standard deviation of this distribution
The proportion of households spends more than $3,000 a year on insurance
The proportion of households spends more than $4,000 a year on insurance
= 0 since X is uniformly distributed between the values of $400 and $3,800.
The proportion of households spends between $700 and $1,500 a year on insurance