Cellphones ConsumerReports A Were Any of the Prices Outliers? Explain How You

question 92

Essay

Cellphones ConsumerReports.org evaluated the price and performance of 99 models of cellphones. Computer output gives these summaries for the prices: $$\begin{array} { | c | c | c | c | c | c | c | c | c | } \hline \text { Min } & \text { Q1 } & \text { Median } & \text { Q3 } & \text { Max } & \text { MidRange } & \text { Mean } & \text { TrMean } & \text { SD } \\\hline 0 & 0 & 50 & 200 & 400 & 200 & 96.36 & 90.21 & 107.23 \\\hline\end{array}$$
a. Were any of the prices outliers? Explain how you made your decision.
b. One of the manufacturers advertises a cellphone "economy-priced at only $31.95".
Would you consider that to be a very low price? Explain.

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Definitions:

Economic Behaviors

Actions or decisions of individuals, households, and organizations regarding production, distribution, and consumption of goods and services.

Mental Processes

The internal cognitive operations that underlie thinking, reasoning, perception, and emotional responses.

Behavioral Economics

The study of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Neoclassical Economics

An approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.