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Prep 2 SS · Mathematics
Statistics · Statistics

One-Variable Descriptive Statistics

Before you start, make sure you know: Mean and variance (High School Year 1 (semesters 1 and 2))
Before you start, make sure you know: Measures of position (High School Year 1 (semesters 1 and 2))

When you read that "the average salary in your city is $\$12{,}000$" or that a high school admission survey says "most students take a short time to get there," how can you tell whether the number is telling the truth? Before giving an opinion about data, you have to summarize it with the right measures and know what happens to them when the data change. That is what descriptive statistics for a single variable is about.

Statistical variables: population, sample, and types of data

Tree diagram that classifies statistical variables into qualitative (nominal and ordinal) and quantitative (discrete and continuous). statistical variable qualitative quantitative nominal ordinal discrete continuous
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In a study on the use of social networks at a high school, the following variables were identified. Classify each of them as qualitative, discrete quantitative, or…

In a study on the use of social networks at a high school, the following variables were identified. Classify each of them as qualitative, discrete quantitative, or continuous quantitative:

  1. a) Favorite social network (TikTok, Instagram, Twitter, etc.).
  2. b) Number of followers on the main account.
  3. c) Daily time (in minutes) spent using a cell phone.
  4. d) Cell phone brand (Apple, Samsung, Xiaomi, etc.).
  5. e) Numerical grade obtained in the last math exam.
Solve
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A local municipality wants to know teenagers' opinions on the city's new skate parks. To do this, it randomly selects $200$ young people aged between $14$ and $18$ who…

A local municipality wants to know teenagers' opinions on the city's new skate parks. To do this, it randomly selects $200$ young people aged between $14$ and $18$ who attend youth centers in different neighborhoods.

State the population under study and the chosen sample. Do you think the sample is representative if only youth centers are surveyed?

Solve

Frequency tables and statistical graphs

Tables are represented with bar graphs (qualitative or discrete variables), circular or pie charts (parts of a total), and histograms (continuous variables grouped into intervals: the bars touch each other). In grouped data, the class mark is the midpoint of the interval and represents it.

The frequency polygon is obtained by joining the points $(x_i, n_i)$ with line segments, where $x_i$ is the class mark. In a histogram, this is equivalent to joining the midpoints of the tops of the bars. To close it, you add an empty interval with frequency $0$ before the first one and another after the last one.

In grouped data, the modal interval is the one with the greatest absolute frequency $n_i$ (if the intervals have the same width). The median interval is the first one whose cumulative frequency reaches $N/2$.

If the intervals have different widths, what must be proportional to the frequency is the area of the rectangle, not its height. The height is the density: $\text{density}=\dfrac{f_i}{\text{width}}$, so $f_i=\text{density}\times\text{width}$.

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A group of $20$ 1st Baccalaureate students were asked how many books they have read for pleasure over the past year. The data obtained are as follows:…

A group of $20$ 1st Baccalaureate students were asked how many books they have read for pleasure over the past year. The data obtained are as follows:

$2, 1, 0, 3, 2, 1, 1, 4, 2, 0, 1, 2, 3, 1, 2, 0, 1, 2, 1, 5$

Organise these data into a frequency table including the absolute frequency ($n_i$), relative frequency ($f_i$) and cumulative absolute frequency ($N_i$).

Solve
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A survey was conducted on the number of siblings the students in a class have. The cumulative absolute frequency table ($N_i$) is as follows: | No. of siblings ($x_i$) |…

A survey was conducted on the number of siblings the students in a class have. The cumulative absolute frequency table ($N_i$) is as follows:

No. of siblings ($x_i$) $N_i$
$0$ $6$
$1$ $18$
$2$ $26$
$3$ $30$

Answer the following questions, giving reasons for your answers:

  1. a) How many students are only children?
  2. b) How many students have exactly $2$ siblings?
  3. c) What is the total number of students in the class?
Solve
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A group of researchers has carried out a survey of 40 high school students about the number of hours per week they spend watching content on streaming* platforms. The…

A group of researchers has carried out a survey of 40 high school students about the number of hours per week they spend watching content on streaming platforms. The data collected are as follows:

$12, 15, 10, 8, 12, 14, 20, 18, 15, 12, 10, 9, 14, 15, 12, 18, 22, 15, 12, 10,$

$14, 16, 12, 15, 18, 12, 10, 14, 15, 12, 16, 14, 12, 15, 10, 18, 12, 14, 15, 12$

  1. a) Classify the statistical variable studied.
  1. b) Make a frequency table that includes absolute, relative, cumulative and cumulative relative frequencies.
  1. c) Represent the data using a bar chart (hours per week on the horizontal axis and absolute frequency on the vertical axis).

You can do it on paper and send a photo with your answer.

Solve
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A retail chain wants to show off its sales and produces two graphs with the same quarterly data: in panel A the vertical axis starts at $0$, and in panel B it is…

A retail chain wants to show off its sales and produces two graphs with the same quarterly data: in panel A the vertical axis starts at $0$, and in panel B it is truncated.

A axis from 0 thousands of $ 0 20 40 60 80 100 120 Q1 Q2 Q3 Q4 100 102 105 104 B truncated axis thousands of $ 98 100 102 104 106 Q1 Q2 Q3 Q4 100 102 105 104
  1. a) Calculate the actual percentage change in sales between the first and third quarters.
  1. b) What visual effect does the truncated axis in panel B produce? How does it differ from the impression given by panel A?
  1. c) Which of the two graphs would you use in an honest report for shareholders? And which version might a competitor use to alarm the market? Justify both answers.
Solve

Measures of central tendency: mean, median, and mode

When the data are grouped, the median lies in the median interval (the first one whose cumulative frequency reaches $N/2$). To estimate it within that interval, we assume the data are spread out uniformly:

$$Me \approx L_i + \frac{N/2 - N_{i-1}}{n_i}\cdot a$$

where $L_i$ is the lower limit of the median interval, $N_{i-1}$ is the previous cumulative frequency, $n_i$ is its frequency, and $a$ is its width. It is just a rule of three: what is missing to reach the halfway point, divided by what is in the interval, times its width.

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The marks obtained by $7$ friends on an Economics project are: $6.5; \quad 8.0; \quad 4.5; \quad 7.0; \quad 9.5; \quad 6.5; \quad 5.0$ Calculate the arithmetic mean…

The marks obtained by $7$ friends on an Economics project are:

$6.5; \quad 8.0; \quad 4.5; \quad 7.0; \quad 9.5; \quad 6.5; \quad 5.0$

Calculate the arithmetic mean ($\bar{x}$) and the median ($Me$) of the marks.

Solve
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In an e-sports competition, the times (in seconds) taken by participants to complete the first level have been recorded. As this is a continuous variable, the data have…

In an e-sports competition, the times (in seconds) taken by participants to complete the first level have been recorded. As this is a continuous variable, the data have been grouped into intervals:

Time (s) Frequency ($n_i$)
$[30, 40)$ $12$
$[40, 50)$ $25$
$[50, 60)$ $18$
$[60, 70)$ $5$

Calculate the class midpoints ($x_i$) of each interval and determine the total sample size ($N$).

Solve
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A telephone company measured the duration (in minutes) of 50 calls made during the morning. As it is a continuous variable, the data have been grouped into the following…

A telephone company measured the duration (in minutes) of 50 calls made during the morning. As it is a continuous variable, the data have been grouped into the following intervals:

Duration (min) $[0, 5)$ $[5, 10)$ $[10, 15)$ $[15, 20)$ $[20, 25)$
No. of calls $12$ $18$ $10$ $7$ $3$
  1. a) Calculate the class midpoint of each interval.
  2. b) Calculate the arithmetic mean and standard deviation of the call durations.
  3. c) What percentage of calls last 10 minutes or more?
Solve
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The monthly electricity consumption (in kWh) of $40$ households is grouped as follows: $[100, 150)$: $4$; $[150, 200)$: $9$; $[200, 250)$: $14$; $[250, 300)$: $8$;…

The monthly electricity consumption (in kWh) of $40$ households is grouped as follows: $[100, 150)$: $4$; $[150, 200)$: $9$; $[200, 250)$: $14$; $[250, 300)$: $8$; $[300, 350]$: $5$.

  1. a) Calculate the mean monthly consumption using the class midpoints.
  1. b) State the modal class and the median class, and estimate the median assuming that the data are uniformly distributed within their class interval.
  1. c) The electricity company claims that "half of the households consume less than $225$ kWh". Is this consistent with the data? Justify your answer using your estimate of the median.
Solve
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A study was carried out on the weekly leisure spending of students at a high school. The data are presented grouped into equal-width intervals in the following table,…

A study was carried out on the weekly leisure spending of students at a high school. The data are presented grouped into equal-width intervals in the following table, but the absolute frequencies for two middle intervals ($n_2$ and $n_3$) are missing:

Spending ( pesos) $x_i$ (Class midpoint) $n_i$
$[0, 400)$ $200$ $8$
$[400, 800)$ $600$ $n_2$
$[800, 1\,200)$ $1\,000$ $n_3$
$[1\,200, 1\,600)$ $1\,400$ $12$

Given that the sample size is $N = 60$ and the arithmetic mean of spending is $\bar{x} = 880$ pesos, calculate the values of $n_2$ and $n_3$. Once the table is complete, determine the exact value of the median using linear interpolation.

Solve

Measures of position: quartiles and the box-and-whisker plot

Box-and-whisker plot showing the minimum value, first quartile Q1, median, third quartile Q3, maximum value, and the four 25% sections of the data. Q₁ median Q₃ minmax 25 % 25 % 25 % 25 %

With a cumulative frequency table, the quartile or percentile is the first value whose cumulative frequency reaches the desired position (for example, $P_{40}$ is at position $0.40\,N$).

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An entrance examination for a vocational training course was held, and the marks obtained by the candidates are summarised in the following cumulative frequency table: |…

An entrance examination for a vocational training course was held, and the marks obtained by the candidates are summarised in the following cumulative frequency table:

Mark ($x_i$) $3$ $4$ $5$ $6$ $7$ $8$ $9$
Cum. Freq. ($N_i$) $4$ $10$ $25$ $42$ $56$ $64$ $70$
  1. a) How many students took the exam?
  2. b) Calculate the median, lower quartile, and upper quartile. Explain the meaning of the upper quartile in this context.
  3. c) Calculate the 40th percentile ($P_{40}$) and interpret it.
Solve
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From the following box plot showing the reaction time (in milliseconds) of a group of people to a visual stimulus: a) Identify the values corresponding to the minimum,…

From the following box plot showing the reaction time (in milliseconds) of a group of people to a visual stimulus:

150 200 250 300 350 Reaction time (ms) Min Q₁ Me Q₃ Max
  1. a) Identify the values corresponding to the minimum, maximum, $Q_1$, $Q_2$ (median), and $Q_3$, knowing that the scale is linear and the edges of the box are at $210$ and $290$.
  2. b) Calculate the interquartile range and interpret it.
  3. c) Can it be stated that $50\%$ of the population has a reaction time greater than the median? Justify your answer.
Solve
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The figure shows the box-and-whisker plot of the reaction times of a group of simulator pilots. a) Read the minimum, maximum, quartiles, and median from the graph, and…

The figure shows the box-and-whisker plot of the reaction times of a group of simulator pilots.

min = 8 Q₁ = 14 Me = 19 Q₃ = 26 max = 38 0 5 10 15 20 25 30 35 40 8 14 19 26 38
  1. a) Read the minimum, maximum, quartiles, and median from the graph, and calculate the range and interquartile range.
  1. b) Between which two values is the central $50 \%$ of the data concentrated? What percentage of the data lies below $Q_1$?
  1. c) In view of the position of the median inside the box and the length of the whiskers, does the distribution appear symmetric or skewed? In which direction?
Solve
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The waiting times (in minutes) of $15$ patients at a health center were: $5, 7, 8, 9, 10, 10, 11, 12, 12, 13, 14, 15, 16, 18, 42$. a) Calculate the median and the lower…

The waiting times (in minutes) of $15$ patients at a health center were: $5, 7, 8, 9, 10, 10, 11, 12, 12, 13, 14, 15, 16, 18, 42$.

  1. a) Calculate the median and the lower and upper quartiles.
  1. b) Draw the corresponding box-and-whisker plot, indicating the values used.
  1. c) Apply the $1.5$ times interquartile range rule to decide whether there are any outliers, and interpret what that data point might represent in the real context of the health center.
Solve

Measures of spread: variance, standard deviation, and coefficient of variation

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Two basketball players, Alba and Bruno, have scored the following numbers of points in their last 8 games: Alba: $18, 22, 15, 20, 25, 14, 19, 23$ Bruno:…

Two basketball players, Alba and Bruno, have scored the following numbers of points in their last 8 games:

  • Alba: $18, 22, 15, 20, 25, 14, 19, 23$

  • Bruno: $20, 21, 19, 22, 20, 20, 21, 17$

The following dot plot shows the data for both players (each dot is a game):

Dot plot with the points scored by Alba and by Bruno in their last 8 games1314151617181920212223242526Points scored in a gameAlbaBruno
  1. a) Calculate the mean and the range of points for each player.
  2. b) Calculate the standard deviation of both.
  3. c) Use the coefficient of variation to determine which of the two players is more consistent in their scoring. Justify your answer.
Solve
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We want to compare the consistency of set menu prices in two different areas of a city. The data obtained (in pesos) are: Area A:…

We want to compare the consistency of set menu prices in two different areas of a city. The data obtained (in pesos) are:

  • Area A: $240, 260, 240, 300, 280, 240, 320, 220$

  • Area B: $180, 200, 360, 300, 220, 280, 200, 420$

  1. a) Calculate the mean and standard deviation of the prices in each area.
  2. b) In which area are the prices more dispersed in absolute terms (standard deviation)?
  3. c) In which area are the prices more heterogeneous in relative terms? Use the coefficient of variation to compare both distributions.
Solve
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A nutritionist analyzes the sugar content (in grams per 100 ml) of two brands of "zero" soft drinks, A and B. The results are summarized in the following box plots. Read…

A nutritionist analyzes the sugar content (in grams per 100 ml) of two brands of "zero" soft drinks, A and B. The results are summarized in the following box plots. Read the values from the scale of the horizontal axis.

Box plots of the sugar content in g per 100 ml of brands A and B, on an axis from 0,0 to 1,20.00.10.20.30.40.50.60.70.80.91.01.11.2Sugar (g/100 ml)Brand ABrand B

Looking at the graphs:

  1. a) Which of the two brands has a more spread-out distribution in the middle $50\%$ of its data? Justify your answer by calculating the interquartile range of each brand from the scale of the graph.
  1. b) If brand A has a mean of $0.5$ g and brand B a mean of $0.8$ g, and both have identical standard deviations, which of the two is more "reliable" or consistent in its production? Use the appropriate statistical parameter to compare both brands.
Solve
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Two shops in the same neighborhood recorded their daily sales (in pesos) over $40$ days, grouped into intervals: Shop A: $[10\,000, 14\,000)$: $6$ days;…

Two shops in the same neighborhood recorded their daily sales (in pesos) over $40$ days, grouped into intervals:

  • Shop A: $[10\,000, 14\,000)$: $6$ days; $[14\,000, 18\,000)$: $14$ days; $[18\,000, 22\,000)$: $12$ days; $[22\,000, 26\,000)$: $8$ days.

  • Shop B: $[10\,000, 14\,000)$: $14$ days; $[14\,000, 18\,000)$: $4$ days; $[18\,000, 22\,000)$: $4$ days; $[22\,000, 26\,000)$: $18$ days.

  1. a) Using the class midpoints, calculate the mean daily sales for each shop.
  1. b) Calculate the standard deviation of each distribution (using class midpoints) and its coefficient of variation.
  1. c) An investor wants to buy one of the two shops and is concerned about income stability. Which one would you recommend to them? Justify your answer using the calculated parameters.
Solve

What happens if we change the data: errors, new data, and scales

Diagram of a linear transformation of the data: the shift moves the mean and the scale moves both the mean and the spread. original data x mean 14,500 · σ = 1,200 x' = 1.1x + 500 transformed data x' mean 16,450 · σ = 1,320 the shift moves the mean; the scale moves the mean and the spread
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In a small company, the mean monthly salary of the 10 employees is $29\,000$ pesos with a standard deviation of $2\,400$ pesos. Due to good annual results, management…

In a small company, the mean monthly salary of the 10 employees is $29\,000$ pesos with a standard deviation of $2\,400$ pesos. Due to good annual results, management decides to apply a linear pay rise to all workers consisting of a fixed amount of $1\,000$ pesos and a variable amount of $3\%$ on the current basic salary ($y_i = 1.03 \times x_i + 1\,000$).

  1. a) Calculate what the new mean salary of the workforce will be.
  2. b) Calculate the new standard deviation.
  3. c) Has the coefficient of variation changed? Justify mathematically how these transformations affect the relative dispersion.
Solve
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A study was conducted on the number of children in a sample of families in a neighbourhood. Some data in the frequency table have been lost: | No. of children ($x_i$) |…

A study was conducted on the number of children in a sample of families in a neighbourhood. Some data in the frequency table have been lost:

No. of children ($x_i$) $0$ $1$ $2$ $3$ $4$
Abs. frequency ($n_i$) $8$ $a$ $12$ $b$ $2$
Rel. frequency ($f_i$) $0.20$ $0.35$ $c$ $d$ $0.05$
  1. a) Find the sample size ($N$).
  2. b) Calculate the values of $a, b, c$ and $d$ to complete the table.
  3. c) Determine the mode and median for the number of children.
Solve
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In a prestigious esports academy, the analyst team is studying the reaction time (in milliseconds) of 50 professional players. Upon reviewing the final report, they…

In a prestigious esports academy, the analyst team is studying the reaction time (in milliseconds) of 50 professional players. Upon reviewing the final report, they realise that a coffee stain has smudged part of the frequency table records. Only the following data remain: the arithmetic mean of the distribution is $\bar{x} = 182$ ms, the standard deviation is $\sigma = 12$ ms, and it is known that reaction time follows an approximately symmetric distribution. If a new player is added whose reaction time is $160$ ms, reason mathematically how the coefficient of variation of the original sample will change, and determine the exact value of the new variance after including this data point.

Frequency Time (ms) 182 x̄ 194 170 σ = 12 160 New data point
Solve
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An urban bike rental service is reviewing its costs. The monthly maintenance cost $C$ per bicycle depends on the number of kilometers traveled $x$ according to the…

An urban bike rental service is reviewing its costs. The monthly maintenance cost $C$ per bicycle depends on the number of kilometers traveled $x$ according to the linear function $C(x) = 3x + 800$. Last month, the mean mileage of its fleet of 25 bicycles was $1200$ km with a variance of $14400$ km$^2$.

  1. a) Calculate the mean monthly maintenance cost and its standard deviation.
  2. b) Due to an increase in spare parts prices, the company decides to apply a fixed extra charge of $200$ pesos per bicycle, and additionally, the variable cost per kilometer increases by $20\%$. What will be the new coefficient of variation of the maintenance costs?
Solve
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A set of 10 numerical data points has a mean of $\bar{x} = 15$ and a variance of $s^2 = 20$. Due to a transcription error, one of the data points which was $12$ was…

A set of 10 numerical data points has a mean of $\bar{x} = 15$ and a variance of $s^2 = 20$. Due to a transcription error, one of the data points which was $12$ was recorded as $22$.

  1. a) Calculate the true mean of the dataset after correcting the error.
  2. b) Calculate the exact value of the true variance of the set. (Hint: Use the relationship between the variance and the sum of the squares of the data, $\sum x_i^2$).
Initial Data n = 10 x̄ = 15 s² = 20 Dataset (10 elements) x₁ x₂ x₉ 22 Error 12 Correction Hint: s² = ( Σxᵢ² / n ) - x̄²
Solve

Reading and interpreting: histograms, graphs, and comparisons

Many problems give you a graph instead of the table. The procedure is always the same: read off the values, build the frequency table, and calculate what is asked.

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Look at the following chart representing the favorite sport of a group of students in your grade: From the bar chart: a) What is the mode of this distribution? b) How…

Look at the following chart representing the favorite sport of a group of students in your grade:

0 2 4 6 8 10 12 Soccer Basketball Tennis Swimming 12 8 4 6

From the bar chart:

  1. a) What is the mode of this distribution?
  2. b) How many students in total prefer basketball or swimming?
  3. c) If $30$ students were surveyed in total, how many chose swimming (knowing that the bar reaches halfway between 4 and 8)?
Solve
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A music band wants to know in which format their fans prefer to listen to their songs. They have drawn up a circle graph with the results of $400$ surveys: If $10 \%$ of…

A music band wants to know in which format their fans prefer to listen to their songs. They have drawn up a circle graph with the results of $400$ surveys:

60% 30% 10% Streaming 60% 240 people Download 30% 120 people Physical 10% 40 people

If $10 \%$ of the followers prefer physical format, $30 \%$ digital download and $60 \%$ streaming:

  1. a) Calculate the absolute frequency of followers who prefer each format (knowing that $N=400$).
  2. b) What is the relative frequency ($f_i$) of streaming?
Solve
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The figure shows the histogram of marks in a mathematics exam scored out of $50$. a) How many students scored fewer than $20$ marks? b) Which interval has the most…

The figure shows the histogram of marks in a mathematics exam scored out of $50$.

4 9 14 7 3 0 5 10 15 20 0 10 20 30 40 50 no. of students marks out of 50
  1. a) How many students scored fewer than $20$ marks?
  1. b) Which interval has the most students?
  1. c) How many students took the exam in total?

You can do it on paper and send a photo with your answer.

Solve
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The figure shows the hours of sleep reported by students in a class. a) Construct the absolute frequency table from the graph. b) What percentage of students sleep $8$…

The figure shows the hours of sleep reported by students in a class.

Reported hours of sleep no. of students 14 12 10 8 6 4 2 0 3 8 12 6 2 <6 h 6−7 h 7−8 h 8−9 h >9 h
  1. a) Construct the absolute frequency table from the graph.
  1. b) What percentage of students sleep $8$ hours or more?
  1. c) What is the mode of the distribution?

You can do it on paper and send a photo with your answer.

Solve
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The ages of the members of a hiking club are grouped in the table: $[10, 20)$: $5$; $[20, 30)$: $12$; $[30, 40)$: $18$; $[40, 50)$: $10$; $[50, 60]$: $5$. a) Construct…

The ages of the members of a hiking club are grouped in the table: $[10, 20)$: $5$; $[20, 30)$: $12$; $[30, 40)$: $18$; $[40, 50)$: $10$; $[50, 60]$: $5$.

  1. a) Construct the complete table with class midpoints and cumulative frequencies.
  1. b) Draw the histogram and the frequency polygon.
  1. c) Calculate the mean age using the class midpoints, and state the modal class and the class interval containing the median.

You can do it on paper and send a photo with your answer.

Solve
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In an archery competition, the scores of two archers, Elena and Sofía, are recorded after 40 shots. Elena has a mean score of $8.2$ with a standard deviation of $1.3$.…

In an archery competition, the scores of two archers, Elena and Sofía, are recorded after 40 shots. Elena has a mean score of $8.2$ with a standard deviation of $1.3$. Sofía has the following cumulative frequencies for her scores: $25\%$ of her shots were $7$ points or fewer, $50\%$ were $8$ points or fewer, and $75\%$ were $9$ points or fewer.

  1. a) Assuming Sofía's scores follow an approximately normal distribution (for which $\sigma \approx \frac{IQR}{1.35}$), determine with reasoning which of the two archers is more consistent.
  2. b) If winning a tournament requires at least $30\%$ of shots to score $10$, and we know that Elena obtained $10$ on $12$ occasions, does Elena meet the requirement? Can we know if Sofía meets it from her quartile data?
Solve
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A local municipality analyzes household water consumption using a relative frequency histogram. Due to the nature of the data, the intervals have different widths:…

A local municipality analyzes household water consumption using a relative frequency histogram. Due to the nature of the data, the intervals have different widths: $[0, 10)$, $[10, 20)$, $[20, 40)$, and $[40, 70)$ cubic meters per month. The heights of the histogram bars (frequency density) are $0.03$; $0.04$; $0.015$, and $0.0033$ respectively.

  1. a) Calculate the relative frequency of each interval.
  2. b) What is the mean consumption per household in this municipality?
  3. c) Determine the value of the $80$ percentile and interpret its meaning in the context of water conservation.
Solve
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An investor analyses the daily return of two crypto-assets over a month ($30$ days). Asset $X$ has a mean return of $2\%$ and a variance of $9\%$. Asset $Y$ has a daily…

An investor analyses the daily return of two crypto-assets over a month ($30$ days). Asset $X$ has a mean return of $2\%$ and a variance of $9\%$. Asset $Y$ has a daily return that can be summarised as follows: for $10$ days it lost $1\%$, for $15$ days it gained $3\%$, and for $5$ days it gained $5\%$.

  1. a) Calculate the mean return and standard deviation of asset $Y$.
  2. b) Using the coefficient of variation, determine which of the two assets is more volatile (less predictable).
  3. c) If the investor decides to create a combined portfolio with $60\%$ of the capital in asset $X$ and $40\%$ in asset $Y$, what would be the expected mean return of the portfolio?
Solve

Back to the beginning: when you read that "the average salary is $\$12{,}000$," be suspicious if they only use the mean: a few very high salaries inflate it. The median and the interquartile range reflect much better what most people experience, and the coefficient of variation tells you how even the data are.

Summary

See all the exercises in this section