Note that XandYare independent random variables because the two students are randomly selected from each of the campuses. At the main campus, full-time students pay \(50per unit. At the downtown campus, full-time students pay \)55per unit. Suppose we randomly select one full-time student from each of the two campuses. Find the standard deviation of the difference D(Main − Downtown) in the number of units that the two randomly selected students take.

Short Answer

Expert verified

The standard deviation and the units of data values are the same. The standard deviation is 3.0877.

Step by step solution

01

Given Information  

Both XandYare independent events.

Such that

For X:

The value of Mean, μX=732.50

The value of Standard deviation, σX=103

For Y:

The value of Mean, μY=825

The value of Standard deviation,σY=126.50

The full-time student pays at the main campus. : $50per unit.

02

Calculating standard deviation of the Main campus

When we divide the total amount spent by 50, we get the number of units.

The standard deviation is a measure of spread, as we all know. When each data value is multiplied by 50, the spread measure should be multiplied by 50as well.

As a result, the standard deviation for the Main campus is :

σMain=σX50=10350=2.06.

When the total amount spent is divided by 55, we get the number of units.

The standard deviation is a measure of spread, as we all know.

The spread measure should be multiplied by 55as well.

03

Finding the standard deviation of the difference D

As a result, the standard deviation for the Downtown campus is :

σDowntown=σY55=126.5050=2.3

The variance of the difference of two random variables is the sum of their variances when the random variables are independent.

role="math" localid="1654184360394" σ2(Main-Downtown)=σ2Main+σ2Downtown=(2.06)2+(2.3)2=9.5336

We know that the square root of the variance is the standard deviation.

As a result, :

σ(Main-Downtown)=9.53363.0877

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