Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 3 - Section 3.2 - Assess Your Understanding - Applying the Concepts - Page 154: 35b

Answer

Prices between 2.91 and 3.21 will be within 2.5 S.D. of the mean (84%).

Work Step by Step

Using Chebyshev's inequality for k =2.5: $(1−1/(2.5)^2)=84\%$ x̅ - ks = 3.06 - 2.5 (0.06) = 2.91 x̅ + ks = 3.06 + 2.5 (0.06) = 3.21 Hence, prices between 2.91 and 3.21 will be within 2.5 S.D. of the mean (84%).
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