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The American Housing Survey reported the following data on the number of times that owner-occupied and renter-occupied units had a water supply stoppage lasting 6 or more hours in the past 3 months (U.S. Census Bureau website, October 2012). Number of Units (1000s) Number of Times Owner Occupied Renter Occupied 0 439 394 1 1100 760 2 249 221 3 98 92 4 times or more 120 111 a. Define a random variable x = number of times that owner-occupied units had a water supply stoppage lasting 6 or more hours in the past 3 months and develop a probability distribution for the random variable. (Let x = 4 represent 4 or more times.) b. Compute the expected value and variance for x . c. Define a random variable y = number of times that renter-occupied units had a water supply stoppage lasting 6 or more hours in the past 3 months and develop a probability distribution for the random variable. (Let y = 4 represent 4 or more times.) d. Compute the expected value and variance for y . e. What observations can you make from a comparison of the number of water supply stoppages reported by owner-occupied units versus renter-occupied units?

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STATISTICS F/BUSINESS+ECONOMICS-TE...

13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884
BuyFind

STATISTICS F/BUSINESS+ECONOMICS-TE...

13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884

Solutions

Chapter
Section
Chapter 5.3, Problem 18E
Textbook Problem

The American Housing Survey reported the following data on the number of times that owner-occupied and renter-occupied units had a water supply stoppage lasting 6 or more hours in the past 3 months (U.S. Census Bureau website, October 2012).

Number of Units (1000s)
Number of Times Owner Occupied Renter Occupied
0 439 394
1 1100 760
2 249 221
3 98 92
4 times or more 120 111
  1. a. Define a random variable x = number of times that owner-occupied units had a water supply stoppage lasting 6 or more hours in the past 3 months and develop a probability distribution for the random variable. (Let x = 4 represent 4 or more times.)
  2. b. Compute the expected value and variance for x.
  3. c. Define a random variable y = number of times that renter-occupied units had a water supply stoppage lasting 6 or more hours in the past 3 months and develop a probability distribution for the random variable. (Let y = 4 represent 4 or more times.)
  4. d. Compute the expected value and variance for y.
  5. e. What observations can you make from a comparison of the number of water supply stoppages reported by owner-occupied units versus renter-occupied units?

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