Families with an income range of $35,000 to $55,000 are likely to buy the latest Star Quest DVD.What is the variance for this uniform probability distribution of family income?
A)$675,000,000
B)$200,000,000
C)$33,333,333
D)$1666.67

Question

Quizplus · Accepted Answer

The variance ($ \sigma^2 $) for a uniform distribution is calculated using the formula $\sigma^2 = \frac{(b - a)^2}{12}$, where $b$ is the maximum value and $a$ is the minimum value. Here, $b = 55000$ and $a = 35000$, so $\sigma^2 = \frac{(55000 - 35000)^2}{12} = \frac{20000^2}{12} = \frac{400,000,000}{12} = 33,333,333$.

Families with an Income Range of $35,000 to $55,000 Are