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THE INTERNATIONAL UNIVERSITY (IU)

INDEX 1
MID-TERM EXAMINATION
STATISTICS FOR BUSINESS Duration: 120
minutes
Dean of School Lecturer: Student ID: Date:

Name:

Assoc Prof. Ho Thanh Phong


INSTRUCTIONS:

1. This is an open book examination. Answer multiple choice questions in exam question paper, answer
writing in answer sheets provided.
2. Use of calculator is allowed.
3. Discussion and material transfer are strictly prohibited.
Total pages: 8 (including this page)

PART I: Multiple Choice Questions (30%)


Use the following to answer next 3 questions:
From the interviews of 200 executives, we get:

Location
D E F G
Finance A 10 24 8 14
Manufacturing B 30 6 22 12
Computer C 28 18 12 16

1. P(B ∩ E): _____________

2. P(A│G): _____________

3. P(C U F): _____________

Use the following to answer next 2 questions:

Among the group of 20 students who registered for the statistic course, 8 of them are first-year students. 5
students are randomly selected from the group.

4. What is the probability that exactly 2 of the selected students are first-year students?
a) 0.1192
b) 0.3486
c) 0.3973
d) 0.3065
e) None of the above

5. What probability that at least 3 of the selected students are first-year students?
a) 0.3973
b) 0.2587
c) 0.2962
d) 0.2348
e) None of the above

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Use the following data to answer the next 4 questions:


The sample data is given: 25, 28, 33, 37, 45, 52, 60, 67, 73, 85, 92, 96, 103, 110

6. Median of the above data is:


a) 62.8
b) 64
c) 63.5
d) 67
e) None of the above

7. Treat the above data as a sample, its variance is:


a) 845.912
b) 806.56
c) 788.857
d) 761.76
e) None of the above

8. The 55th percentile is:


a) 72.1
b) 68.5
c) 69.3
d) 71.4
e) None of the above

9. The IQR (Inter-Quartile Range) is:


a) 82
b) 75
c) 57
d) 85
e) None of the above

Use the following information to answer next 2 questions:


A company wants to establish a marketing group of 5 members. Members of the group are selected from 6
managers and 9 technicians.

10. How many ways to select a group consists of 3 managers and 2 technicians:

Answer: ________________

11. What is the probability that the group would consist of 3 managers and 2 technicians:

Answer: ________________

Use the following to answer next 3 questions:

The test score s for 22 students in a given class are as follow:


40, 49, 56, 62, 65,70, 70, 72, 75, 78, 78, 82, 84, 85, 90, 67, 47, 75, 81, 80, 77, 70

12. The mean value of the test score is:_____________

13. Verify Chebyshev’s theorem using the above data:


_____________________________________________________________________________________
_____________________________________________________________________________________

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14. Briefly verify Empirical rule using the above data:


_____________________________________________________________________________________
_____________________________________________________________________________________
_________________________________________________

PART II (70 %)
Question 1:
Given a set of data:
113, 119, 123, 128, 128, 134, 139, 147, 165, 168, 172, 176, 181, 184, 188, 193, 196, 200, 205, 230
a. What is the mean and the standard deviation of this sample?
b. Find the 1st, 2nd , 3rd quartile and 68th percentile.
c. Construct the box plot for this data set.

Question 2:
The following table gives the number of products in five types produced by two factories:
Type
A B C D E
Factory X 210 342 186 425 135
Factory Y 320 287 238 266 180
a. A product is randomly selected. What is the probability that it is produced by factory X?
b. What is the probability that a randomly selected product is type B and produced by factory Y?
c. What is the probability that a product, which is not type C, is produced by factory X?

Question 3:
The salary of people in AAA City is normally distributed with the mean 1000 USD, standard deviation is of
200 USD.
a. If the, one person is randomly chosen, what is the probability that his salary will be in between 950 to
1080 ?
b. If 16 persons are randomly chosen, what is probability that the sample mean will be in between 950 to
1080?
c. If 16 person are chosen, find two values L and R which are symmetric about the mean and satisfy
condition P (L ≤ sample mean ≤ R) = 0.80 ?

Question 4:
Suppose that 7 of the total of 23 company accounts are in error. An auditor selects a random sample of 6
accounts. Find the probability that:
a. The sample has at least 2 error accounts.
b. There is no error account in the sample.
c. There are exactly 3 error accounts in the sample.

Question 5:
A random sample with size 36 is taken from a normal population having mean µ = 25, standard deviation is
unknown. Sample standard deviation is s = 4.35 . Find the probability that sample mean is at least 19.5

Question 6:
According to a survey, 40% of the people read magazine A, 35% of the people read magazine B, and 25% of
the people read magazine C. If 8 people are selected randomly, what is the probability that:
a. Three of them read magazine A?
b. At most 2 of them read magazine B?
c. Two of them read magazine C?
GOOD LUCK!

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SOLUTION

PART I – MULTIPLE-CHOICE QUESTIONS

Use the following data to answer next 3 questions:

Location
D E F G Total
Finance A 10 24 8 14 56
Manufacturing B 30 6 22 12 70
Computer C 28 18 12 16 74
Total 68 48 42 42 200

1. ( ∩ ) = 6/200 = 0.03

2. ( | ) = ( ∩ )⁄ ( ) = 14⁄42 = 1/3 ≈ 0.3333

3. ( ∪ ) = ( ) + ( ) − ( ∩ ) = (74 + 42 − 12)⁄200 = 0.52

Use the following data to answer next 2 questions: (Hypergeometric Distribution)

= 20 =8 =5

4. c. 0.3973

5. c. 0.2962

Use the following data to answer next 4 questions:

6. c. 63.5

7. a. 845.912

8. b. 68.5

9. c. 57

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Use the following data to answer next 2 questions: (Hypergeometric Distribution)

=6( )+ 9( ℎ ) = 15
=6( )
=5

10. (6 3)(9 2) = 720

11. ( = 3) = [(6 3)(9 2)]/(15 5) = 240/1,001 ≈ 0.2398

Use the following data to answer next 3 questions:

Let’s order the data set from smallest to largest:


40, 47, 49, 56, 62, 65, 67, 70, 70, 70
72, 75, 75, 77, 78, 78, 80, 81, 82, 84
85, 90

12. ̅ ≈ 70.59

13. From the data set itself, we see that 21 of 22 observations fall in the interval ± =
. ± × . = [ . , . ] based on rule 1 of Chebyshev’s theorem, so the rule
that at least three-quarters will be within the range is satisfied.

14. Since the distribution of the data set is mound-shaped, the empirical rule can be applied.
There are 21 of 22 observations falling in the interval ± = . ± × . =
[ . , . ] based on rule 2 of Empirical Rule, so the rule that approximately 95% of the
observations will be within the range is satisfied.

PART II – WRITING

QUESTION 1:

a. Sample mean: ̅ = 164.4500 Sample standard deviation: = 33.5582

b. The 1st quartile is the observation in position (20 + 1)25/100 = 5.25, which is 129.5

The 2nd quartile is the observation in position (20 + 1)50/100 = 10.5, which is 170

The 3rd quartile is the observation in position (20 + 1)75/100 = 15.75, which is 191.75

The 68th percentile is the observation in position (20 + 1)68/100 = 14.28, which is 185.12

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c. Construct a Box plot for this data set

Table 1:
Smallest Largest
1st Quartile Median 3rd Quartile
Observation Observation
113 129.5 170 191.75 230

IQR = 3 Quartile – 1 Quartile = 191.75 − 129.5 = 62.25


Range of Inner Fences = 1.5(IQR) = 1.5(62.25) = 93.375
Range of Outer Fences = 3(IQR) = 3(62.25) = 186.75

Lower Inner Fence = Q1 − 1.5(IQR) = 129.5 − 93.375 = 36.125


Upper Inner Fence = Q3 + 1.5(IQR) = 191.75 + 93.375 = 285.125
Lower Outer Fence = Q1 − 3(IQR) = 129.5 − 186.75 = −57.25
Upper Outer Fence = Q3 + 3(IQR) = 191.75 + 186.75 = 378.5

Table 2:
Lower Outer Lower Inner Upper Inner Upper Outer
Median
Fence Fence Fence Fence
−57.25 36.125 170 285.125 378.5

Box plot:

Conclusion:
Based on the box plot, we can see that the distribution of the data is relatively symmetric with no
suspected outlier and no outlier.

QUESTION 2:

Type
Total row
A B C D E
Factory X 210 342 186 425 135 1,298
Factory Y 320 287 238 266 180 1,291
Total column 530 629 424 691 315 2,589

(a) ( ) = 1,298/2,589 ≈ 0.5014

(b) ( ∩ ) = 287/2,589 ≈ 0.1109

(c) ( | ̅ ) = ( ∩ ̅ )/ ( ̅ ) = (1,298 − 186)/(2,589 − 424) ≈ 0.5136

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QUESTION 3: = 1,000 = 200

(a)
950 − 1,000 − 1,080 − 1,000
(950 ≤ ≤ 1,080) = ≤ ≤
200 200

1 2
= − ≤ ≤ ≈ 0.2541
4 5

(b) With = 16,

950 − 1,000 − 1,080 − 1,000


(950 ≤ ≤ 1,080) = ≤ ≤
200 200
√16 √ √16

8
= −1 ≤ ≤ ≈ 0.7865
5

(c) ( ≤ ≤ ) = (− ≤ ≤ ) = 0.80

= 0.8/2 = 0.4

= 1.28

Hence, = − ⁄√ = 1,000 − 1.28 200/√16 = 936

= + ⁄√ = 1,000 + 1.28 200/√16 = 1,064

QUESTION 4: (Hypergeometric Distribution)


= 23, = 7, =6

7 23 − 7
(a) ( ≥ 2) = 6− ≈ 0.6178
23
6

7 23 − 7
(b) ( = 0) = 0 6−0 ≈ 0.0793
23
6

7 23 − 7
(c) ( = 3) = 3 6−3 ≈ 0.1942
23
6

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QUESTION 4: (Sampling Distribution)


= 36, = 25, = 4.35

− 19.5 − 25
( ≥ 19.5) = ≥ ≈ ( ≥ −5.0575) ≈ 1
/√ 4.35/√36

QUESTION 6: (Binomial Distribution)

Let A be the event of the people who read magazine A ( ) = 0.40

B be the event of the people who read magazine B ( ) = 0.35

C be the event of the people who read magazine C ( ) = 0.25

=8

(a) With ( ) = 0.40,

( = 3) = 8 × (0.40) × (0.60) ≈ 0.2787


3

(b) With ( ) = 0.35,

( ≤ 2) = 8
× (0.35) × (0.65) ≈ 0.4278

(c) With ( ) = 0.25,

( = 2) = 8 × (0.25) × (0.75) ≈ 0.3115


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