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June 2016 p63 q4
2516
The monthly rental prices, \(x\), for 9 apartments in a certain city are listed and are summarised as follows.
\(\Sigma(x-c) = 1845\)
\(\Sigma(x-c)^2 = 477450\)
The mean monthly rental price is $2205.
Find the value of the constant \(c\). [2]
Find the variance of these values of \(x\). [2]
Another apartment is added to the list. The mean monthly rental price is now $2120.50. Find the rental price of this additional apartment. [2]
Solution
(i) To find \(c\), use the equation for the mean: \(\frac{\Sigma x}{9} = 2205\). Therefore, \(\Sigma x = 2205 \times 9 = 19845\). Given \(\Sigma(x-c) = 1845\), we have \(\Sigma x - 9c = 1845\). Substituting \(\Sigma x = 19845\), we get:
\(19845 - 9c = 1845\)
\(9c = 19845 - 1845 = 18000\)
\(c = \frac{18000}{9} = 2000\)
(ii) The variance is given by \(\frac{\Sigma(x-c)^2}{9} - (\text{mean of } x)^2\). Substituting the given values:
Variance = \(\frac{477450}{9} - 2205^2\)
Variance = \(53050 - 2205^2\)
Variance = \(11025\)
(iii) With the new apartment, the mean becomes \(2120.50\) for 10 apartments. Therefore, the new total is: