## Answers

i)

If normal distribution is chosen with mean $7000 and standard deviation(sd) $1750 then the range is 7000-(3*1750) to 7000 + (3*1750) , which is (1750,12250)

Thus the range is 12250-1750 = 10500. since total number of bins is 10, the size of each bin is 10500/10=1050

Thus the ranges for the bins are

1750-2800, | 2800-3850, | 3850-4900, | 4900-5950, | 5950-7000, | 7000-8050, | 8050-9100, | 9100-10150, | 10150-11200, | 11200-12250 |

ii)

Pt is obtained by multiplying Pv and n.

Based on the value of Pv it is classified into the bin # based on above bin mapping.

Range of Pv is the same for all iterations based on the above assumed distribution.

The table will be as follows

n | 3 | 8 | 5 | 9 | 6 |

Pv | 3750 | 4500 | 7000 | 6700 | 7750 |

Pt | 11250 | 36000 | 35000 | 60300 | 46500 |

Bin # | 2 | 3 | 5 | 5 | 6 |

$ Range | 10500 | 10500 | 10500 | 10500 | 10500 |

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