Question

A car salesman sells cars with prices ranging from $5,000 to $45,000. The histogram shows the distribution of the numbers of cars he expects to sell over the next 10 years. The salesman has observed that many students are looking for cars that cost less than $5,000. If he decides to also deal in cars that cost less than $5,000 and projects selling 200 of them over the next 10 years, how will the distribution be affected?

Answer 1

Answer:

'The distribution will exhibit a negative skew'

Step-by-step explanation:

The given parameters of the price of car sales are;

The price range of the cars = $5,000 to $45,000

The data on the histogram includes;

$\begin{array}{ccc}Car \, Prices&&Cars \, Sold\\5,000 - 10,000 &&200\\10,000-15,000&&350\\15,000-20,000&&550\\20,000-30,000&&700\\30,000-35,000&&550\\35,000-40,000&&350\\40,000-45,000&&200\end{array}$

Given that the number of cars sold in 10 years that are less than, $5,000 is projected at 200, we have;

$\begin{array}{ccc}Car \, Prices&&Cars \, Sold\\0-5,000&&200\\5,000 - 10,000 &&200\\10,000-15,000&&350\\15,000-20,000&&550\\20,000-30,000&&700\\30,000-35,000&&550\\35,000-40,000&&350\\40,000-45,000&&200\end{array}$

Therefore, the number of bars of the histogram before the maximum height on the left will be more than the number of bars of histogram after the maximum height on the right and the histogram will be left-skewed, which is a negative skewness.