The Following Table Lists the Amounts Paid in Mortgages as a Percentage

question 68

Essay

The following table lists the amounts paid in mortgages as a percentage of the household income in the town Aponia. Calculate the variance and standard deviation of the data, if mean is given as 22.4%. The percentage (x) values are estimated as midpoints of each percentage range. $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Mortgage as a } \\\text { percentage of } \\\text { household income in } \\\text { Aponia }\end{array} & & \\\hline \text { Group in \% } & \begin{array} { l } \text { Percentage } \\\text { (x) }\end{array} & \begin{array} { l } \text { Number of } \\\text { households (f) }\end{array} \\\hline 0 - 10 & 5 & 4567 \\\hline 10 - 20 & 15 & 6562 \\\hline 20 - 30 & 25 & 3356 \\\hline 30 - 40 & 35 & 2975 \\\hline 40 - 50 & 45 & 1644 \\\hline 50 - 60 & 55 & 1376 \\\hline\end{array}$$

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Definitions:

Long-Run Equilibrium

A state in economics where all factors of production are variable, leading to a situation where all firms in a competitive market make zero economic profit.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.