Math Problem Statement
In 500 small scale units, the return on investment ranged from 0 to 30 per cent, no unit sustaining any loss. Five per cent of the units had returns ranging from zero per cent to 5 per cent, 15 per cent of the units earned returns between 5 per cent and 10 per cent. The median rate of return was 15 per cent and the upper quartile was 20 per cent. The uppermost layer of returns of 25—30 per cent was earned by 50 units. Put this information in the form of a frequency table and find the rate of return around which there is maximum concentration of units.
Solution
Let's break down the problem and organize the given data into a frequency table.
Step 1: Analyze the Data
- Total Units: 500 units.
- Return Range: 0% to 30%.
- Frequency Distribution:
- 5% of units (0% to 5%): units.
- 15% of units (5% to 10%): units.
- The median rate of return is 15%.
- The upper quartile is 20%.
- 50 units earned returns between 25% and 30%.
Step 2: Construct the Frequency Table
Given the above data, we can construct the frequency table as follows:
Return Range (%) | Number of Units | Cumulative Frequency |
---|---|---|
0 - 5 | 25 | 25 |
5 - 10 | 75 | 100 |
10 - 15 | ||
15 - 20 | ||
20 - 25 | ||
25 - 30 | 50 | 500 |
Step 3: Solve for the Unknowns
We know that the median return is 15%, meaning that half of the units (250) earned less than or equal to 15%. Therefore, the cumulative frequency at the 15% mark should be 250 units.
So, implies:
The upper quartile is at 20%, meaning that 75% of the units (375 units) earned less than or equal to 20%.
So, implies:
Finally, there are 50 units in the range 25%-30%, so:
Final Frequency Table
Return Range (%) | Number of Units | Cumulative Frequency |
---|---|---|
0 - 5 | 25 | 25 |
5 - 10 | 75 | 100 |
10 - 15 | 150 | 250 |
15 - 20 | 125 | 375 |
20 - 25 | 75 | 450 |
25 - 30 | 50 | 500 |
Step 4: Identify Maximum Concentration
The range with the maximum number of units (maximum concentration) is 10% to 15% with 150 units.
Do you want more details or have any questions?
Here are five related questions:
- How would the frequency table change if 10% of units had returns from 0% to 5%?
- What is the interquartile range for the return on investment?
- How would you calculate the mode of this dataset?
- What would be the impact if the number of units in the 25%-30% range doubled?
- How does the cumulative frequency help in understanding the distribution?
Tip: When analyzing distributions, the cumulative frequency helps in understanding the spread and concentration of data, especially around key statistical points like the median and quartiles.
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Math Problem Analysis
Mathematical Concepts
Statistics
Frequency Distribution
Percentages
Formulas
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Theorems
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Suitable Grade Level
Undergraduate level
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