Horatio Oscar Vineeth Lane (HOV Lane for Short) Records His

question 41

Essay

Horatio Oscar Vineeth Lane (HOV Lane for short) records his commute times for a period of one month and assigned them to five different categories as shown in the table.
$$\begin{array} { | c | c | } \hline \text { Commute Length } & \text { Number af Observations } \\\hline \text { commute time } < 10 \text { minutes } & 1 \\\hline 10 \leq \text { commute time } < 20 \text { minutes } & 2 \\\hline 20 \leq \text { commute time } < 30 \text { minutes } & 4 \\\hline 30 \leq \text { commute time } < 40 \text { minutes } & 9 \\\hline 40 \leq \text { commute time } < 50 \text { minutes } & 4 \\\hline\end{array}$$
-What is the average commute time for HOV Lane?

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Definitions:

Annual Percentage Rate

A measure of the cost of credit, expressed as a yearly interest rate.

Annual Percentage Rate

The yearly interest rate charged on borrowed money, including fees and other costs associated with the loan.

Effective Annual Rate

Effective annual rate (EAR) is the actual return on an investment or real cost of a loan, considering compounding interest, expressed as an annual rate.

EAR

Effective Annual Rate, a measure of interest that accounts for compounding over a year, providing a more accurate depiction of financial product returns.