Provide an Appropriate Response $\$ 1074 , \$ 1536 , \$ 1641 , \$ 528 , \$ 801 , \$ 1662 , \$ 1347 , \$ 696$

question 150

Multiple Choice

Provide an appropriate response.
-The mean monthly rent for a sample of studio apartments in one city is $1200 with a standard deviation of $210. The monthly rents for eight more studio apartments in the city are listed. Using the sample statistics
Above, determine which of the data values are unusual. Are any of the data values very unusual? Explain.
(Assume the data set has a bell-shaped distribution.) $\$ 1074 , \$ 1536 , \$ 1641 , \$ 528 , \$ 801 , \$ 1662 , \$ 1347 , \$ 696$

• A)$1641, $528, $1662, $696 are unusual because they are more than 2 standard deviations from the mean. $528 is very unusual because it is more than 3 standard deviations from the mean.
• B)$1536, $1641, $528, $801, $1662, $696 are unusual because they are more than 1 standard deviation from the mean. $1641, $528, $1662, $696 are very unusual because they are more than 2 standard deviations
• From the mean.
• C)$528 is unusual because it is more than 3 standard deviations from the mean. There are no values that are very unusual because no value is more than 4 standard deviations from the mean.
• D)$1641, $528, $801, $1662, $696 are unusual because they are more than 2 standard deviations from the mean. $528 and $696 are very unusual because they are more than 3 standard deviations from the mean.

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Definitions:

Course of Action

A plan or strategy designed to achieve a specific goal or solve a problem.

Differential Cost

The difference in total cost between two alternative decisions or scenarios.

Further Process

The subsequent operations or steps taken to enhance or complete the production of goods.

Variable Cost Concept

The variable cost concept implies costs that vary directly with the level of production or sales volume, such as materials and labor.