Suppose you are the manager of a pizza restaurant chain. You are planning to open new outlets in Mumbai and New Delhi. You know the prices of the cheapest pizza from other outlets in each city. You are given the task of setting competitive prices for your menu.Pizza Prices in Mumbai (₹) Pizza Prices in Delhi (₹)480 500450 330350 340220 1,800350 250- 210 Question 2/4MandatoryCentral TendenciesWhy do you think the mean price for Delhi is higher than the mean price for Mumbai?
Question
Suppose you are the manager of a pizza restaurant chain. You are planning to open new outlets in Mumbai and New Delhi. You know the prices of the cheapest pizza from other outlets in each city. You are given the task of setting competitive prices for your menu.Pizza Prices in Mumbai (₹) Pizza Prices in Delhi (₹)480 500450 330350 340220 1,800350 250- 210 Question 2/4MandatoryCentral TendenciesWhy do you think the mean price for Delhi is higher than the mean price for Mumbai?
Solution
The mean price for Delhi is higher than the mean price for Mumbai because the mean is calculated by adding all the prices and dividing by the number of prices. In Delhi, there is a pizza price that is significantly higher (₹1,800) than the rest. This is an outlier and it increases the total sum of the prices in Delhi, thus raising the mean. Even though most pizzas in Delhi are cheaper than in Mumbai, this one very expensive pizza skews the mean to be higher in Delhi than in Mumbai.
Similar Questions
Suppose you are the manager of a pizza restaurant chain. You are planning to open new outlets in Mumbai and New Delhi. You know the prices of the cheapest pizza from other outlets in each city. You are given the task of setting competitive prices for your menu.Pizza Prices in Mumbai (₹) Pizza Prices in Delhi (₹)480 500450 330350 340220 1,800350 250- 210 Question 3/4MandatoryMedianWhat is the median price for Mumbai and Delhi, respectively?₹350 and ₹335₹350 and ₹330₹220 and ₹340₹420 and ₹330
Why do you think the mean price for Delhi is higher than the mean price for Mumbai?
Suppose you are the manager of a pizza restaurant chain. You are planning to open new outlets in Mumbai and New Delhi. You know the prices of the cheapest pizza from other outlets in each city. You are given the task of setting competitive prices for your menu.
Suppose you are the manager of a pizza restaurant chain. You are planning to open new outlets in Mumbai and New Delhi. You know the prices of the cheapest pizza from other outlets in each city. You are given the task of setting competitive prices for your menu.Pizza Prices in Mumbai (₹) Pizza Prices in Delhi (₹)480 500450 330350 340220 1,800350 250- 210 Question 4/4MandatoryMode What is the mode for Mumbai and Delhi?Mumbai: ₹350, Delhi: No modeMumbai: ₹350, Delhi: ₹340Mumbai: ₹420, Delhi: No ModeMumbai: No mode, Delhi: No mode
examine the most likely price in mumbai corresponding to the price of rs.70 at kolkata from the following average price in kolkata is 65 and standard deviation in kolkata is 2.5 average price in mumbai is 67 and standard deviation is 3.5 correlation coefficient between the price of commodities in the two cities is 0.8
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