Using the following table, what is the percent of the relative frequency of a silver car being observed?

Prepare for the Advanced Business Analytics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

To determine the percent of the relative frequency of a silver car being observed, one must divide the number of silver cars by the total number of cars observed and then multiply by 100 to convert this fraction into a percentage.

The formula for calculating relative frequency is:

Relative Frequency = (Frequency of the specific category / Total frequency) * 100%

Assuming the data provides a count of silver cars and a total count of cars, if the value for silver cars and the total number of cars have been analyzed to result in 30.5%, then this represents the proportion of silver cars among all observed cars.

This percentage indicates how common silver cars are in the observed dataset, reflecting trends in consumer preferences or production rates in a given context, such as the automotive market. A higher percentage signifies a stronger presence of silver cars compared to other colors, while a lower percentage would indicate the opposite.

Understanding how to compute relative frequencies is crucial in analytical practices, as it helps to interpret data distributions accurately and make informed decisions based on observed trends.

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