Determine the possible values of the random variable 38 The

Determine the possible values of the random variable. 38) The following frequency distribution lists the annual household incomes (in thousands of dollars) 38) of one neighborhood in a large city. For a randomly selected income between $ 200,000 and $700,000. let Y denote the number of households with that Income. What are the possible values of the random variable Y? Incomes Frequency 200-300 59 301-400 66 401-500 67 501-600 93 601-700 15 A) 300 B) 59,66, 67,93 C)59,66,67,93,15 D)15

Solution

The frequency distribution table provides the number of times an event occur for a particular instance.

For example see the column frequency for the row 301-400 ie. the number 66. This means that total number of households with income range between 301,000 - 400,000 = 66.

Using similar argument we see that:

1. Total number of households with income between 200,000-300,000 = 59

2. Total number of households with income between 301,000-400,000 = 66

3. Total number of households with income between 401,000-500,000 = 67

4. Total number of households with income between 501,000-600,000 = 93

5. Total number of households with income between 601,000-700,000 = 15

But you can only pick one of the five rows. Therefore the correct answer is (C).