Question

math of finance sem a- a
obile ownership
allowance survey
a high schools business studies department surveyed students to
understand how they manage their allowances. they categorized students
into three groups based on their weekly allowance ranges: less than $20,
$20 to $50, and more than $50. they also noted whether students tended
to save or spend their allowances.
the survey results are summarized as follows:

• total students surveyed: 300
• less than $20:
• save: 60 students
• spend: 40 students
• $20 to $50:
• save: 80 students
• spend: 70 students
• more than $50:
• save: 30 students
• spend: 20 students

what is the marginal relative frequency of students with an allowance range of
$20 to $50?
0.4
0.7
0.6
0.5

Explanation:

Step1: Find total in $20 - $50 group

For the $20 to $50 allowance range, add save (80) and spend (70): $80 + 70 = 150$.

Step2: Calculate marginal relative frequency

Marginal relative frequency = (Total in group) / (Total surveyed). Total surveyed is 300. So, $\frac{150}{300} = 0.5$.

Answer:

0.5