Answer:
89% of the time that average price of electricity is expected to be in the interval from 5.62 cents per kw-h to 18.22 cents per kw-h
Step-by-step explanation:
Chebyshev's inequality states that:
When K = 2, 75% of the data is within two standard deviations of the mean
When K = 3, 89% of the data is within 3 standard deviations of the mean
In this problem, we have that:
Mean = 11.92 cents per kw-h
Standard deviation = 2.1 cents per kw-h
What can you determine about these data by using Chebyshev's Inequality with K=3?
3 standard deviations below the mean
11.92 - 3*2.1 = 5.62 cents per kw-h
3 standard deviations above the mean
11.92 + 3*2.1 = 18.22 cents per kw-h
So you can determine that 89% of the time that average price of electricity is expected to be in the interval from 5.62 cents per kw-h to 18.22 cents per kw-h
