Chapter 21.III, Problem 4RE

BUSINESS DECISION: RELATIVE FREQUENCY DISTRIBUTION

In business, percents are frequently used to represent the portion of observations falling within classes of a frequency distribution. A relative frequency distribution expresses the distribution as percents. To convert a frequency distribution to a relative frequency distribution, divide each of the class frequencies (portion) by the total number of observations (base). Remember. $\text{Rate = Portion }÷\text{Base}$.

a. From the frequency distribution you constructed for the Internet Cafe in Exercise 3a. conver each class frequency to a relative class frequency, percents. Round your answers to tenths.

b. What percent of the sales receipts were paid between $5.00 and $5.99?

c. What percent of the sales receipts were $7.00 or more?

d. What percent of the sales receipts were less than $8.00?