Income allocated to the purchase of groceries

Reference no: EM13990097

An economist conducted a study to identify the percentage of family income allocated to the purchase of groceries. She surveyed a random sample of 50 families and compiled the following numeric frequency distribution:

Percent of income	Number of families
10 - under 20%	6
20 - under 30%	14
30 - under 40%	16
40 - under 50%	10
50 - under 60%	4

(a) Compute and interpret the (approximate) mean percentage of family income allocated to grocery purchase. (Hint: Use the weighted average formula with the midpoint of each interval as xi.)

(b) What is the maximum percentage of income that is allocated to grocery purchase by:

(i) the lower 50% of families?

(ii) the lower 25% of families?

(c) 25% of families spend more than a specific percentage of their income on groceries. What is that percentage of income value?

Reference no: EM13990097

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