Final answer:
The question explores the concept of normal distribution using real-world data on American families' annual expenditures on food and drink, highlighting spending patterns and the impact of income inequality on consumption choices.
Step-by-step explanation:
The student's question revolves around the understanding of normal distribution and its application to real-life data regarding annual expenditures on food and drink.
The U.S. Bureau of Labor Statistics has provided the mean value of annual expenditure ($5700) and a standard deviation ($1500).
In addition, we learn about the broader context of American consumption choices based on the Consumer Expenditure Survey, which indicates that the average U.
S. household, after necessary deductions, spent $48,109 on consumption in 2015.
This spending includes a significant portion on shelter, food, and vehicle expenses.
However, the survey also acknowledges that spending patterns can greatly vary due to factors such as family income, geography, and personal preferences.
When examining income inequality, we consider that, in certain years, millions of U.
S. families lived below the poverty line, facing challenges in meeting basic needs, including food, on very tight budgets.
These statistics provide a stark perspective on the day-to-day realities of struggling families compared to more affluent households.
It looks like you've provided information about the average annual expenditure on food and drink for all families in the U.S. According to the information:
Average annual expenditure on food and drink = $5700
Standard deviation = $1500
This suggests that the data is assumed to be normally distributed.
If you have any specific questions or if you would like me to perform any calculations or analysis based on this information, please let me know how I can assist you.
The U.S. Bureau of Labor Statistics reports that the average annual expenditure on food and drink for all families is $5,700 (Money, December 2003). Assume that annual expenditure on food and drink is normally distributed and that the standard deviation is $1,500.
(A) 24.2% of families spends $X or less on food and drink. What is the value of X?
(B) Assume total number of families is 500,000. How many families spend more than $7000 annually on food and drink?