Tuition 600 650 700 750 800 850 900 Charge (T) Probability 0.25 0.10 0.05 0.30 0.10 0.05 0.15 The mean and standard deviation of this distribution are: Notice that the shapes of both distributions are the same the mean of the distribution of is 50 times bigger than the mean of 732.5 = 50(14.65) T X: the standard deviation of is 50 bigger than the standard deviation of 103 = T X: 50(2.06) Here is the probability distribution for C: Overall Cost (C) 700 750 800 850 900 950 1000 Probability 0.25 0.10 0.05 0.30 0.10 0.05 0.15 The mean and standard deviation of this distribution are: Notice that the shapes of both distributions are the same the mean of the distribution of is $100 larger than the mean of 832.5 = 100 + 732.5 C T: the standard deviation of is the as the standard deviation of C same T We can add/subtract/multiply/divide to means. So then = |b|σx (you can only multiply/divide to standard σy deviations)
Tuition Charge (T) 600 650 700 750 800 850 900 Probability 0.25 0.10 0.05 0.30 0.10 0.05 0.15 The mean and standard deviation of this distribution are: Notice that the shapes of both distributions are the same the mean of the distribution of T is 50 times bigger than the mean of X: 732.5 = 50(14.65) the standard deviation of T is 50 bigger than the standard deviation of X: 103 = 50(2.06) Here is the probability distribution for C: Overall Cost (C) 700 750 800 850 900 950 1000 Probability 0.25 0.10 0.05 0.30 0.10 0.05 0.15 The mean and standard deviation of this distribution are: Notice that the shapes of both distributions are the same the mean of the distribution of C is $100 larger than the mean of T: 832.5 = 100 + 732.5 the standard deviation of C is the same as the standard deviation of T We can add/subtract/multiply/divide to means. So then σy = |b|σx (you can only multiply/divide to standard deviations)
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