Preview - Descriptive Statistics

Why do we need to understand standard deviation?

Recall the gas price problem from earlier in this unit. You owned a trucking company and were trying to figure out how much to budget for gasoline (per gallon). For the questions that follow, let's assume that the current mean US gas price is $3.43/gallon with a standard deviation of $0.13/gallon. 

Questions

Please answer the questions below.

What would be an amount ($ per gallon) that would be way too high to budget for gasoline? Justify your answer. 

What would be an amount ($ per gallon) that would be way too low to budget for gasoline? Justify your answer. 

Make a prediction for the shape of the distribution of US gas prices. Justify your answer. 

Notes

These notes will appear on every page in this lesson so feel free to put anything here you'd like to keep track of.