Question

A luxury apartment complex in South Beach Miami is for sale. The owner has received the following offers in millions of dollars.

64 72 66 58 78 82
1. Calculate the sample mean of the offers. (round to one decimal place)
2. Calculate the sample variance of the offers.

Answer 1

(1) The sample mean of the offers is 70.0

(2) The sample variance of the offers is 68

Explanation:

(1) Sample mean = summation of offers ÷ number of offers = (64+72+66+58+78+82) ÷ 6 = 420 ÷ 6 = 70.0 (to one decimal place)

(2) Sample variance = summation (offers - sample mean)^2 ÷ number of offers = [(64-70)^2 + (72-70)^2 + (66-70)^2 + (58-70)^2 + (78-70)^2 + (82-70)^2] ÷ 6 = (36+4+16+144+64+144) ÷ 6 = 408 ÷ 6 = 68