Error Analysis and ROC

Based upon the information presented by Karem, the standardization of income for Rigid Gyms is *closest* to:

Incorrect. The maximum observation is not used in the calculation of the standardized value.

Correct! The standardization equation is: >$$\displaystyle X_{i (standardization)} = \frac{X_i - \mu}{\sigma}$$. For Rigid Gyms, the income measure is 84,612, so the equation is: >$$\displaystyle \frac{84{,}612 - 55{,}813}{27{,}050} =1.0647$$.

Incorrect. The numerator of the standardization equation also involves the mean.

0.5680.

1.0647.

3.1280.