Lola wants to make an 6% real return on a loan that she is planning to make, and the expected inflation rate during the period o
1 answer:
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Answer:
It will be better to keep the old car.
Explanation:
gasoline spending:
old:
250 miles per week/ 24 miles per gallon= 10,41666666
then that x 52 weeks per year x 3.5 per gallon x 5 years
new:
250 / 53 = 4,716981
then this x 52 weeks x 3.5 per gallon x 5 years=
repairs:
1,500 x 5 years = 7,500
insurance:
800 x 5 = 4,000 new car insurance
400 x 5 = 2,000 old car insurance
Answer:
a) Income of $272,428 or more would be top 1%.
b) Skewed right
c) Not always normally distributed
Explanation:
We are given the following information in the question:
Mean, μ = $77,044
Standard Deviation, σ = $84,000
Median = $58,423
a) We follow a normal mode
Formula:
We have to find the value of x such that the probability is 0.01
P(X > x)
Calculation the value from standard normal z table, we have,
Thus, income of $272,428 or more would be top 1%.
b) We should not be confident as the median is not equal to the mean. Hence, it is not a normal distribution. It was just an assumption. Since the mean is greater than the median the distribution of income is skewed towards right.
c) Normal model not be a good one for incomes because the median may not always e equal to the mean and hence, they do not follow a normal distribution.