A. Which of these variables are discrete and which are continuous random variables?
1. The number of new accounts established by a salesperson in a year.
2. The time between customer arrivals to a bank ATM.
3. The number of customers in Big Nick’s barber shop.
5. The amount of fuel in your car’s gas tank.
6.The number of minorities on a jury.
6. The outside temperature today.
B. A recent article suggested that if you earn $25,000 a year today and the inflation rate continues at 3 percent per year, you’ll need to make $33,598 in 10 years to have the same buying power. You would need to make $44,771 if the inflation rate jumped to 6 percent. Confirm that these statements are accurate by finding the geometric meanrate of increase.
The solution examines continuous random variables.