Question

ECO250 Unit 3 In-Class Exercise You are thinking about opening a restaurant in your neighborhood but before you do so, you decide to do a little research to figure out what your potential market looks like. You randomly select 10 individuals in your neighborhood and ask them how many people live in their household (household size) and how often they dine out each month (restaurant visits). The data you collected is given in the table below. Observation Household size Restaurant visits 8 4 3 6 10 10 Answer the following questions. 1. Briefly explain (in words) what the median is. 2. Calculate the sample median of household size and restaurant visits. 3. Calculate the sample mean of household size and restaurant visits.

Answer 1

*We are suposed to doonly four sub-parts to a question. For solution to other parts please post as separate question.

1. The median refers to the middle term.
2. For median arrange the observations in increasing or decreasing order

Household size: 2, 2, 3, 3, 3, 4, 4, 4,5, 5 . Since the number of observations are even.

Therefore, Median = (5^th term+6^th term)/2

Median = (3+4)/2 = 3.5

Restaurant visits: 1, 1, 2, 3, 3, 4, 4, 6, 8, 10

Median = (5^th term +6^th term)/2

Median = (3+4)/2 = 3.5

3. Sample Mean = Sum of observation/Sample size

Household size: Sample Mean = (35)/10 = 3.5

Restaurant visits: Sample Mean = (42)/10 = 4.2

4. In the case of household size the mean and median are equal therefore the histogram will be symmetric and will represent bell.

In case of restaurant visit mean is greater than median therefore, the histogram will be positively skewed.(i.e not exact bell shaped)