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The U.S. Government Accountability Office recently indicated the price of college textbooks has been rising an average of 6% annually since the academic year 1987-1988. The report estimated that the average cost of books and supplies for first-time students at four-year public universities for the academic year had reached $898. A data set that would produce this average follows:
537.51 1032.52 1119.17 877.27 856.87 739.91 963.76
847.92 1393.81 524.68 1012.91 1176.46 944.60 708.26
1074.35 778.78 967.91 562.55 789.50 1051.65
a. Calculate the mean and standard deviation.
b. Determine the number of standard deviations the most extreme cost is away from the mean. If you were to advise a prospective student concerning the money the student should save to afford the cost of books and supplies for at least 90% of colleges, determine the amount you would suggest. (Hint: Don't forget the yearly inflation of cost of books and supplies.)
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