Question

Question 1:

1. The following table gives the frequency distribution of the number of orders received each day during the past 50 days at the office of the mail order company. Calculate the mean, mode, median, quartiles, variance and standard deviation.

Number of Order	Frequency
10-12 13-15 16-18 19-21	4 12 20 14
	n=50

                                                                                                                                    

b. "Fits", a designer dress retailer specialising in ladies' formal wear, is currently in the process of re-ordering a batch of formal black dinner dresses. From its records of the last 100 sales, the following statistics on the dress sizes sold were calculated:

Mean(x) = 8.75 Md= 7.5 Mo = 8

Which measure of central tendency best describes the average size of dresses sold?

c. Suppose the probability that a house of a certain type will burn down in any 12-month period is 0.004. An insurance company offers to sell the owner of such a house a $120, 000 one-year term fire-insurance policy for a premium of $690. What is the company's expected gain from such a contract?

Answer 1