Chapter 2.1, Problem 24E

(a)

To determine

To explain the effect on the shape due to decrease in the of each car by $500.

Answer to Problem 24E

No change

Explanation of Solution

Here the changes are being made in the car price of each carwhich is decrease in the Car price of each car by $500. The changes in the Car price of all cars mean that there is change in origin and there is no effect on the shape of the distribution due to change in origin.

(b)

To determine

To explain the effect on the Mean and median due to decrease in the Car price of each car by $500.

Answer to Problem 24E

Mean = It will be decreased by $500

Median = No effect

Explanation of Solution

Here the changes are being made in the Car price of each car which is decrease in the Car price of each car by $500. The changes in the Car price of all cars means that there is change in origin and when there is change in origin means there is also increase or decrease by the same amount, so the mean will decrease by $500, but there is no effect on the median. The median of the data still the middle term of the data.

(c)

To determine

To explain the effect on the Mean and median due to decrease in the Car price of each each car by $500.

Answer to Problem 24E

Standard deviation = No change

Interquartile range = No change

Explanation of Solution

Here the changes are being made in the Car price of each car which is decrease in the Car price of each car by $500. The changes in the Car price of all cars means that there is change in origin and when there is change in origin then there is no effect on the measures of the dispersion like standard and interquartile range.