Short Questions in Statistics for Management

1. Explain the significance of correlation.

2. What is scatter diagram? How does it help in studying correlation?
3. Name different methods of measuring correlation.
4. Does correlation always signify cause and effect relationship?
5. Give any two applications of regression analysis.
6. Compare regression and correlation in studying the interdependence of to variables.
7. How y on x is different from x on y.
8. Brief the applications of index numbers.
9. Explain the method of construction of whole sale price index.
10. Explain any two methods of business forecasting.
11. Why should we deseasonalize the data?
12. Which component of the time series applicable in case of sale of new year greeting cards?
13. What do you understand by the word odds against?
14. What is conditional probability?
15. When will a binomial distribution tend to a normal distribution?
16. Give an example for a poisson distribution?
17. How do you calculate mean and variance of binomial and poisson distribution?
18. When will binomial distribution can be approximated by the poisson distribution?
19. Give a business application for a binomial distribution.
20. Explain the law that forms the basis for sampling.
21. Difference between standard deviation and standard error.
22. Name any two errors that occur in any sample survey.
23. Name any two non-sampling errors.
24. When do we use point estimate and when do we use interval estimate.
25. What is reliability?
26. What is significant level?
27. What is power of a test?
28. How do we reduce both type 1 and type 2 errors?
29. Can the decision about the hypothesis testing will it be altered at the same significant level if
the test moves from one tailed to two tailed?
30. Give two applications of t test.
31. What are the cautions to be taken while applying chi square test?
32. What are the assumptions while applying analysis of variance?
33. Give two examples where one uses analysis of variance.
34. Give an example where one uses subjective probability.
35. The probability of rolling two sixes with two dice is 1/36. An example of __________
36. What is the probability that the couples second child will be a girl given first child is boy?
37. What is the probability that the 53 Sundays are contained in a leap year?
38. P(A)=0.39, P(B)= 0.21 P(A or B)=0.47 Find probability neither A nor B will occur.
39. P(A)=0.65, P(B)= 0.80 P(A / B)=P(A) and P(B/A)=0.85. Is this a consistent assignment of
probabilities?
40. If X is the exponential random variable with λ=0.5 Find the probability P(X>2).
41. As the degrees of freedom increases in a t distribution the distribution becomes normal
(T/F)
42. As the values of the variables come closer to mean the standard deviation decreases (T/F)
43. What is an unbiased estimator?
44. When do we use population multiplier?
45. Can we use ANOVA for contingency table?
46. We use sampling distribution for all the hypothesis testing (T/F).
47. A confidence level of 95% mean that we are 95% confident that the population mean lies
between the interval estimate calculated (T/F).
48. Name any two parametric tests.
49. Name any two non parametric tests.
50. Give a situation for a use of one tailed test.
51. Give two examples for descriptive statistics.
52. Give two examples for inferential statistics.
53. More statistical tests can be applied on ratio data when compared with ordinal data (T/F).
54. If the variance of a series is 144 and the mean is 50,find out the coefficient of variation.
55. What is law of statistical regularity.
56. “Ram has secured 90 percent marks in Statistics, whereas his height is 1.9 metres and weight
58 kg.” Would you call these as data, state with reasons?
57. What is inertia of large numbers?
58. What is the difference between mistake and an error?
59. What is the relation between mean median and mode?
60. What is the relation between regression coefficients and correlation coefficient?
61. What is the intersection point of two regression lines give?
62. 4X-5Y+30=0 20X-9Y-107=0 which of these represent regression equation on X on Y.
63. Distinguish between ratio to trend and ratio to moving average.
64. What is the difference between causal model and time series model?
65. What is additive and multiplicative models of time series?
66. Find the probability that the standard normal variable will be between 1 and 2.
67. Distinguish between probability density function and Probability mass function.
68. What do you understand by multi stage sampling?
69. Give me an application of random numbers.
70. Give the formula for determining the sample size and explain each and every term.
71. What is the relationship between degrees of freedom and variance?
72. What do you understand by degrees of freedom?
73. What do you understand by critical region?
74. What is acceptance region?
75. Which type of error I or II is costly why so?
76. What are the advantages and limitations of non parametric tests?
77. What is method of least squares with reference to time series analysis?
78. Give an example to explain the concept of probability of causes.
79. What do you mean by inflection point?
80. Where do the points of inflection occur on a normal distribution?
81. Distinguish between strata and cluster.
82. What do you mean by statistical estimation?
83. What is positively skewed distribution give example?
 84. What is negatively skewed distribution. Give example?
85. What do you understand the words platykurtic, mesokurtic, leptokurtic?
86. Distinguish between linear and non linear correlation?
87. What is simple, partial and multiple correlation?
88. When we do ANOVA will multiplying, subtracting, dividing, adding a constant to each and
every element of the data affect the end result of the test?
89. Finding the regression equation using 6 pairs of values for X, Y variables. Will it guarantee
the relation between the variable X,Y for all values.
90. What is spurious correlation. Give an example?
91. Name the factors that influence the trend in time series analysis?
92. What are the characteristics of data?
93. What are the advantages of census survey and the limitations of the same?
94. What is systematic sampling?
95. What is multi-stage sampling?
96. Is the mean of sampling distribution and population distribution same?
97. How do you determine the sample size to a questionnaire which has 6 questions and a
maximum of 5 answer choices?
98. Increase in type I error reduces the type II error and vice versa. Comment.
99. Non parametric tests are easy to conduct than parametric tests. Let’s take only non
parametric tests. Your comment.
100.Quantitative techniques are all about numbers. Will it replace the judgment of the decision
maker in taking the decisions your comment.

Problems in Statistics for Management

1. A college plans to interview 8 students for possible offer of graduate assistantships. The college has three
assistantships available. How many groups of three can the college select?

2. A student has to take 9 more courses before he can graduate. If none of the courses are prerequisite to
others, how many groups of four courses can he select for the next semester?

3. From among 8 students how many committees consisting of 3 students can be selected?

4. From a group of seven finalists to a contest, three individuals are to be selected for the first and second
and third places. Determine the number of possible selections.

5. Ten individuals are candidates for positions of president, vice president of an organization. How many
possibilities of selections exist?
6. Assume you have applied for two scholarships, a Merit scholarship (M) and an Athletic scholarship (A).
The probability that you receive an Athletic scholarship is 0.18. The probability of receiving both
scholarships is 0.11. The probability of getting at least one of the scholarships is 0.3.

a. What is the probability that you will receive a Merit scholarship?

b. Are events A and M mutually exclusive? Why or why not? Explain.
c. Are the two events A, and M, independent? Explain, using probabilities.
d. What is the probability of receiving the Athletic scholarship given that you have been
awarded the Merit scholarship?
e. What is the probability of receiving the Merit scholarship given that you have been awarded
the Athletic scholarship?

7. A survey of a sample of business students resulted in the following information regarding the genders of
the individuals and their selected major.

Selected Major

Gender Management Marketing Others Total

Male 40 10 30 80

Female 30 20 70 120

Total 70 30 100 200

a. What is the probability of selecting an individual who is majoring in Marketing?

b. What is the probability of selecting an individual who is majoring in Management, given
that the person is female?
c. Given that a person is male, what is the probability that he is majoring in Management?
d. What is the probability of selecting a male individual?

8. Sixty percent of the student body at UTC is from the state of Tennessee (T), 30% percent are from other
states (O), and the remainder are international students (I). Twenty percent of students from Tennessee
live in the dormitories, whereas, 50% of students from other states live in the dormitories. Finally, 80% of
the international students live in the dormitories.

a. What percentage of UTC students live in the dormitories?

b. Given that a student lives in the dormitory, what is the probability that she/he is an
international student?
c. Given that a student lives in the dormitory, what is the probability that she/he is from
Tennessee?

9. The probability of an economic decline in the year 2008 is 0.23. There is a probability of 0.64 that we will
elect a republican president in the year 2008. If we elect a republican president, there is a 0.35 probability
of an economic decline. Let "D" represent the event of an economic decline, and "R" represent the event
of election of a Republican president.

a. Are "R" and "D" independent events?

b. What is the probability of a Republican president and economic decline in the year 2008?
 c. If we experience an economic decline in the year 2008, what is the probability that there will
a Republican president?
d. What is the probability of economic decline or a Republican president in the year 2008?
Hint: You want to find P(D  R).

10. As a company manager for Claimstat Corporation there is a 0.40 probability that you will be promoted
this year. There is a 0.72 probability that you will get a promotion, a raise, or both. The probability of
getting a promotion and a raise is 0.25.

a. If you get a promotion, what is the probability that you will also get a raise?
b. What is the probability that you will get a raise?
c. Are getting a raise and being promoted independent events? Explain using probabilities.
d. Are these two events mutually exclusive? Explain using probabilities.

11. A company plans to interview 10 recent graduates for possible employment. The company has three
positions open. How many groups of three can the company select?

12. A student has to take 7 more courses before she can graduate. If none of the courses are prerequisites to
others, how many groups of three courses can she select for the next semester?

13. How many committees, consisting of 3 female and 5 male students, can be selected from a group of 5
female and 8 male students?

14. Six vitamin and three sugar tablets identical in appearance are in a box. One tablet is taken at random and
given to Person A. A tablet is then selected and given to Person B. What is the probability that

a. Person A was given a vitamin tablet?

b. Person B was given a sugar tablet given that Person A was given a vitamin tablet?
c. neither was given vitamin tablets?
d. both were given vitamin tablets?
e. exactly one person was given a vitamin tablet?
f. Person A was given a sugar tablet and Person B was given a vitamin tablet?
g. Person A was given a vitamin tablet and Person B was given a sugar tablet?

15. The sales records of a real estate agency show the following sales over the past 200 days:

Number of Number
Houses Sold of Days
0 60
1 80
2 40
3 16
4 4
 a. How many sample points are there?
b. Assign probabilities to the sample points and show their values.
c. What is the probability that the agency will not sell any houses in a given day?
d. What is the probability of selling at least 2 houses?
e. What is the probability of selling 1 or 2 houses?
f. What is the probability of selling less than 3 houses?

16. A bank has the following data on the gender and marital status of 200 customers.

Male Female
Single 20 30
Married 100 50

a. What is the probability of finding a single female customer?

b. What is the probability of finding a married male customer?
c. If a customer is female, what is the probability that she is single?
d. What percentage of customers is male?
e. If a customer is male, what is the probability that he is married?
f. Are gender and marital status mutually exclusive?
g. Is marital status independent of gender? Explain using probabilities.

17. An applicant has applied for positions at Company A and Company B. The probability of getting an offer
from Company A is 0.4, and the probability of getting an offer from Company B is 0.3. Assuming that the
two job offers are independent of each other, what is the probability that

a. the applicant gets an offer from both companies?

b. the applicant will get at least one offer?
c. the applicant will not be given an offer from either company?
d. Company A does not offer her a job, but Company B does?

18. An experiment consists of throwing two six-sided dice and observing the number of spots on the upper
faces. Determine the probability that

a. the sum of the spots is 3.

b. each die shows four or more spots.
c. the sum of the spots is not 3.
d. neither a one nor a six appear on each die.
e. a pair of sixes appear.
f. the sum of the spots is 7.

19. Two of the cylinders in an eight-cylinder car are defective and need to be replaced. If two cylinders are
selected at random, what is the probability that

a. both defective cylinders are selected?

b. no defective cylinder is selected?
c. at least one defective cylinder is selected?
20. Assume two events A and B are mutually exclusive and, furthermore, P(A) = 0.2 and P(B) = 0.4.

a. Find P(A  B).

b. Find P(A  B).
c. Find P(A  B).

21. A government agency has 6,000 employees. The employees were asked whether they preferred a four-day
work week (10 hours per day), a five-day work week (8 hours per day), or flexible hours. You are given
information on the employees' responses broken down by sex.

Male Female Total

Four days 300 600 900
Five days 1,200 1,500 2,700
Flexible 300 2,100 2,400
Total 1,800 4,200 6,000

a. What is the probability that a randomly selected employee is a man and is in favor of a four-
day work week?
b. What is the probability that a randomly selected employee is female?
c. A randomly selected employee turns out to be female. Compute the probability that she is in
favor of flexible hours.
d. What percentage of employees is in favor of a five-day work week?
e. Given that a person is in favor of flexible time, what is the probability that the person is
female?
f. What percentage of employees is male and in favor of a five-day work week?

22. Forty percent of the students who enroll in a statistics course go to the statistics laboratory on a regular
basis. Past data indicates that 65% of those students who use the lab on a regular basis make a grade of A
in the course. On the other hand, only 10% of students who do not go to the lab on a regular basis make a
grade of A. If a particular student made an A, determine the probability that she or he used the lab on a
regular basis.

23. A corporation has 15,000 employees. Sixty-two percent of the employees are male. Twenty-three percent
of the employees earn more than $30,000 a year. Eighteen percent of the employees are male and earn
more than $30,000 a year.

a. If an employee is taken at random, what is the probability that the employee is male?
b. If an employee is taken at random, what is the probability that the employee earns more than
$30,000 a year?
c. If an employee is taken at random, what is the probability that the employee is male and
earns more than $30,000 a year?
d. If an employee is taken at random, what is the probability that the employee is male or earns
more than $30,000 a year?
 e. The employee taken at random turns out to be male. Compute the probability that he earns
more than $30,000 a year.
f. Are being male and earning more than $30,000 a year independent?

24. In the two upcoming basketball games, the probability that UTC will defeat Marshall is 0.63, and the
probability that UTC will defeat Furman is 0.55. The probability that UTC will defeat both opponents is
0.3465.

a. What is the probability that UTC will defeat Furman given that they defeat Marshall?
b. What is the probability that UTC will win at least one of the games?
c. What is the probability of UTC winning both games?
d. Are the outcomes of the games independent? Explain and substantiate your answer.

25. A small town has 5,600 residents. The residents in the town were asked whether or not they favored
building a new bridge across the river. You are given the following information on the residents'
responses, broken down by sex.

Men Women Total

In Favor 1,400 280 1,680
Opposed 840 3,080 3,920
Total 2,240 3,360 5,600

Let: M be the event a resident is a man

W be the event a resident is a woman
F be the event a resident is in favor
P be the event a resident is opposed

a. Find the joint probability table.

b. Find the marginal probabilities.
c. What is the probability that a randomly selected resident is a man and is in favor of building
the bridge?
d. What is the probability that a randomly selected resident is a man?
e. What is the probability that a randomly selected resident is in favor of building the bridge?
f. What is the probability that a randomly selected resident is a man or in favor of building the
bridge?
g. A randomly selected resident turns out to be male. Compute the probability that he is in favor
of building the bridge.

26. On a recent holiday evening, a sample of 500 drivers was stopped by the police. Three hundred were
under 30 years of age. A total of 250 were under the influence of alcohol. Of the drivers under 30 years of
age, 200 were under the influence of alcohol.

Let A be the event that a driver is under the influence of alcohol.

Let Y be the event that a driver is less than 30 years old.

a. Determine P(A) and P(Y).

b. What is the probability that a driver is under 30 and not under the influence of alcohol?
 c. Given that a driver is not under 30, what is the probability that he/she is under the influence
of alcohol?
d. What is the probability that a driver is under the influence of alcohol, when we know the
driver is under 30?
e. Show the joint probability table.
f. Are A and Y mutually exclusive events? Explain.
g. Are A and Y independent events? Explain.

27. You are given the following information on Events A, B, C, and D.

P(A) = .4 P(A  D) = .6
P(B) = .2 P(AB) = .3
P(C) = .1 P(A  C) = .04
P(A  D) = .03

a. Compute P(D).
b. Compute P(A  B).
c. Compute P(AC).
d. Compute the probability of the complement of C.
e. Are A and B mutually exclusive? Explain your answer.
f. Are A and B independent? Explain your answer.
g. Are A and C mutually exclusive? Explain your answer.
h. Are A and C independent? Explain your answer.

28. In a city, 60% of the residents live in houses and 40% of the residents live in apartments. Of the people
who live in houses, 20% own their own business. Of the people who live in apartments, 10% own their
own business. If a person owns his or her own business, find the probability that he or she lives in a
house.

29. Four workers at a fast food restaurant pack the take-out chicken dinners. John packs 45% of the dinners
but fails to include a salt packet 4% of the time. Mary packs 25% of the dinners but omits the salt 2% of
the time. Sue packs 30% of the dinners but fails to include the salt 3% of the time. You have purchased a
dinner and there is no salt.

a. Find the probability that John packed your dinner.

b. Find the probability that Mary packed your dinner.

30. A statistics professor has noted from past experience that a student who follows a program of studying
two hours for each hour in class has a probability of 0.9 of getting a grade of C or better, while a student
who does not follow a regular study program has a probability of 0.2 of getting a C or better. It is known
that 70% of the students follow the study program. Find the probability that a student who has earned a C
or better grade, followed the program.

31. All the employees of ABC Company are assigned ID numbers. The ID number consists of the first letter
of an employee's last name, followed by four numbers.

a. How many possible different ID numbers are there?

 b. How many possible different ID numbers are there for employees whose last name starts
with an A?

32. Assume you have applied to two different universities (let's refer to them as Universities A and B) for
your graduate work. In the past, 25% of students (with similar credentials as yours) who applied to
University A were accepted, while University B accepted 35% of the applicants. Assume events are
independent of each other.

a. What is the probability that you will be accepted in both universities?

b. What is the probability that you will be accepted to at least one graduate program?
c. What is the probability that one and only one of the universities will accept you?
d. What is the probability that neither university will accept you?

33. The following table shows the number of students in three different degree programs and whether they are
graduate or undergraduate students:

Undergraduate Graduate Total

Business 150 50 200
Engineering 150 25 175
Arts & Sciences 100 25 125
Total 400 100 500

a. What is the probability that a randomly selected student is an undergraduate?

b. What percentage of students is engineering majors?
c. If we know that a selected student is an undergraduate, what is the probability that he or she
is a business major?
d. A student is enrolled in the Arts and Sciences school. What is the probability that the student
is an undergraduate student?
e. What is the probability that a randomly selected student is a graduate Business major?

34. A survey of business students who had taken the Graduate Management Admission Test (GMAT)
indicated that students who have spent at least five hours studying GMAT review guides have a
probability of 0.85 of scoring above 400. Students who do not review have a probability of 0.65 of
scoring above 400. It has been determined that 70% of the business students review for the test.

a. Find the probability of scoring above 400.

b. Find the probability that a student who scored above 400 reviewed for the test.

35. A machine is used in a production process. From past data, it is known that 97% of the time the machine
is set up correctly. Furthermore, it is known that if the machine is set up correctly, it produces 95%
acceptable (non-defective) items. However, when it is set up incorrectly, it produces only 40% acceptable
items.

a. An item from the production line is selected. What is the probability that the selected item is
non-defective?
 b. Given that the selected item is non-defective, what is the probability that the machine is set up
correctly?

36. A committee of 4 is to be selected from a group of 12 people. How many possible committees can be
selected?

37. Assume a businessman has 7 suits and 8 ties. He is planning to take 3 suits and 2 ties with him on his next
business trip. How many possibilities of selection does he have?

38. The results of a survey of 800 married couples and the number of children they had is shown below.

Number of Children Probability

0 0.050
1 0.125
2 0.600
3 0.150
4 0.050
5 0.025

If a couple is selected at random, what is the probability that the couple will have

a. Less than 4 children?

b. More than 2 children?
c. Either 2 or 3 children?

39. Assume that in your hand you hold an ordinary six-sided die and a dime. You toss both the die and the
dime on a table.

a. What is the probability that a head appears on the dime and a six on the die?
b. What is the probability that a tail appears on the dime and any number more than 3 on the
die?
c. What is the probability that a number larger than 2 appears on the die?

40. A very short quiz has one multiple choice question with five possible choices (a, b, c, d, e) and one true or
false question. Assume you are taking the quiz but do not have any idea what the correct answer is to
either question, but you mark an answer anyway.

a. What is the probability that you have given the correct answer to both questions?
b. What is the probability that only one of the two answers is correct?
c. What is the probability that neither answer is correct?
d. What is the probability that only your answer to the multiple choice question is correct?
e. What is the probability that you have only answered the true or false question correctly?
41. Thirty-two percent of the students in a management class are graduate students. A random sample of 5
students is selected. Using the binomial probability function, determine the probability that the sample
contains exactly 2 graduate students?

42. Seventy percent of the students applying to a university are accepted. Using the binomial probability
tables, what is the probability that among the next 18 applicants

a. At least 6 will be accepted?

b. Exactly 10 will be accepted?
c. Exactly 5 will be rejected?
d. Fifteen or more will be accepted?
e. Determine the expected number of acceptances.
f. Compute the standard deviation.

43. General Hospital has noted that they admit an average of 8 patients per hour.

a. What is the probability that during the next hour less then 3 patients will be admitted?
b. What is the probability that during the next two hours exactly 8 patients will be admitted?

44. The demand for a product varies from month to month. Based on the past year's data, the following
probability distribution shows MNM company's monthly demand.

x f(x)
Unit Demand Probability
0 0.10
1,000 0.10
2,000 0.30
3,000 0.40
4,000 0.10

a. Determine the expected number of units demanded per month.

b. Each unit produced costs the company $8.00, and is sold for $10.00. How much will the
company gain or lose in a month if they stock the expected number of units demanded, but
sell 2000 units?

45. Twenty-five percent of the employees of a large company are minorities. A random sample of 7
employees is selected.

a. What is the probability that the sample contains exactly 4 minorities?

b. What is the probability that the sample contains fewer than 2 minorities?
c. What is the probability that the sample contains exactly 1 non-minority?
d. What is the expected number of minorities in the sample?
e. What is the variance of the minorities?
46. A salesperson contacts eight potential customers per day. From past experience, we know that the
probability of a potential customer making a purchase is .10.

a. What is the probability the salesperson will make exactly two sales in a day?
b. What is the probability the salesperson will make at least two sales in a day?
c. What percentage of days will the salesperson not make a sale?
d. What is the expected number of sales per day?

47. A life insurance company has determined that each week an average of seven claims is filed in its
Nashville branch.

a. What is the probability that during the next week exactly seven claims will be filed?
b. What is the probability that during the next week no claims will be filed?
c. What is the probability that during the next week fewer than four claims will be filed?
d. What is the probability that during the next week at least seventeen claims will be filed?

48. When a particular machine is functioning properly, 80% of the items produced are non-defective. If three
items are examined, what is the probability that one is defective? Use the binomial probability function to
answer this question.

49. Ten percent of the items produced by a machine are defective. Out of 15 items chosen at random,

a. what is the probability that exactly 3 items will be defective?

b. what is the probability that less than 3 items will be defective?
c. what is the probability that exactly 11 items will be non-defective?

50. The student body of a large university consists of 30% Business majors. A random sample of 20 students
is selected.

a. What is the probability that among the students in the sample at least 10 are Business majors?
b. What is the probability that at least 16 are not Business majors?
c. What is the probability that exactly 10 are Business majors?
d. What is the probability that exactly 12 are not Business majors?

51 For a standard normal distribution, determine the probabilities of obtaining the following z values. It is
helpful to draw a normal distribution for each case and show the corresponding area.

a. Greater than zero

b. Between -2.4 and -2.0
c. Less than 1.6
d. Between -1.9 to 1.7
e. Between 1.5 and 1.75
52. A professor at a local community college noted that the grades of his students were normally distributed
with a mean of 74 and a standard deviation of 10. The professor has informed us that 6.3 percent of his
students received A's while only 2.5 percent of his students failed the course and received F's.

a. What is the minimum score needed to make an A?

b. What is the maximum score among those who received an F?
c. If there were 5 students who did not pass the course, how many students took the course?

53. The time it takes to hand carve a guitar neck is uniformly distributed between 110 and 190 minutes.

a. What is the probability that a guitar neck can be carved between 95 and 165 minutes?
b. What is the probability that the guitar neck can be carved between 120 and 200 minutes?
c. Determine the expected completion time for carving the guitar neck.
d. Compute the standard deviation.

54. Scores on a recent national statistics exam were normally distributed with a mean of 80 and a standard
deviation of 6.

a. What is the probability that a randomly selected exam will have a score of at least 71?
b. What percentage of exams will have scores between 89 and 92?
c. If the top 2.5% of test scores receive merit awards, what is the lowest score eligible for an
award?
d. If there were 334 exams with scores of at least 89, how many students took the exam?

55. The average starting salary of this year's MBA students is $35,000 with a standard deviation of $5,000.
Furthermore, it is known that the starting salaries are normally distributed. What are the minimum and the
maximum starting salaries of the middle 95% of MBA graduates?

56 The average starting salary for this year's graduates at a large university (LU) is $20,000 with a standard
deviation of $8,000. Furthermore, it is known that the starting salaries are normally distributed.

a. What is the probability that a randomly selected LU graduate will have a starting salary of at
least $30,400?
b. Individuals with starting salaries of less than $15,600 receive a low income tax break. What
percentage of the graduates will receive the tax break?
c. What are the minimum and the maximum starting salaries of the middle 95% of the LU
graduates?
d. If 189 of the recent graduates have salaries of at least $32,240, how many students graduated
this year from this university?

57. "DRUGS R US" is a large manufacturer of various kinds of liquid vitamins. The quality control
department has noted that the bottles of vitamins marked 6 ounces vary in content with a standard
deviation of 0.3 ounces. Assume the contents of the bottles are normally distributed.

a. What percentage of all bottles produced contains more than 6.51 ounces of vitamins?
b. What percentage of all bottles produced contains less than 5.415 ounces?
 c. What percentage of bottles produced contains between 5.46 to 6.495 ounces?
d. Ninety-five percent of the bottles will contain at least how many ounces?
e. What percentage of the bottles contains between 6.3 and 6.6 ounces?

58. The Globe Fishery packs shrimp that weigh more than 1.91 ounces each in packages marked" large" and
shrimp that weigh less than 0.47 ounces each into packages marked "small"; the remainder are packed in
"medium" size packages. If a day's catch showed that 19.77 percent of the shrimp were large and 6.06
percent were small, determine the mean and the standard deviation for the shrimp weights. Assume that
the shrimps' weights are normally distributed.

59. The monthly earnings of computer programmers are normally distributed with a mean of $4,000. If only
1.7 percent of programmers have monthly incomes of less than $2,834, what is the value of the standard
deviation of the monthly earnings of the computer programmers?

60. A major department store has determined that its customers charge an average of $500 per month, with a
standard deviation of $80. Assume the amounts of charges are normally distributed.

a. What percentage of customers charges more than $380 per month?

b. What percentage of customers charges less than $340 per month?
c. What percentage of customers charges between $644 and $700 per month?

61. The First National Mortgage Company has noted that 6% of its customers pay their mortgage payments
after the due date.

a. What is the probability that in a random sample of 150 customers 7 will be late on their
payments?
b. What is the probability that in a random sample of 150 customers at least 10 will be late on
their payments?

62. The salaries of the employees of a corporation are normally distributed with a mean of $25,000 and a
standard deviation of $5,000.

a. What is the probability that a randomly selected employee will have a starting salary of at least
$31,000?
b. What percentage of employees has salaries of less than $12,200?
c. What are the minimum and the maximum salaries of the middle 95% of the employees?
d. If sixty-eight of the employees have incomes of at least $35,600, how many individuals are
employed in the corporation?

63. A manufacturing process produces items whose weights are normally distributed. It is known that 22.57%
of all the items produced weigh between 100 grams up to the mean and 49.18% weigh from the mean up
to 190 grams. Determine the mean and the standard deviation.
64 The daily dinner bills in a local restaurant are normally distributed with a mean of $28 and a standard
deviation of $6.

a. What is the probability that a randomly selected bill will be at least $39.10?
b. What percentage of the bills will be less than $16.90?
c. What are the minimum and maximum of the middle 95% of the bills?
d. If twelve of one day's bills had a value of at least $43.06, how many bills did the restaurant
collect on that day?

65 The price of a bond is uniformly distributed between $80 and $85.

a. What is the probability that the bond price will be at least $83?
b. What is the probability that the bond price will be between $81 to $90?
c. Determine the expected price of the bond.
d. Compute the standard deviation for the bond price.

66. Salary information regarding male and female employees of a large company is shown below.

Male Female
Sample Size 64 36
Sample Mean Salary (in $1,000) 44 41
Population Variance (2) 128 72

The standard error for the difference between the two means is

67. A statistics teacher wants to see if there is any difference in the abilities of students enrolled in
statistics today and those enrolled five years ago. A sample of final examination scores from students
enrolled today and from students enrolled five years ago was taken. You are given the following
information.

Today Five Years Ago

82 88
2 112.5 54
n 45 36

The standard error of is

68. The following information was obtained from independent random samples.
Assume normally distributed populations with equal variances.

Sample 1 Sample 2
Sample Mean 45 42
Sample Variance 85 90
Sample Size
69.
10 12
 The degrees of freedom is

69. The following information was obtained from matched samples.

Individual Method 1 Method 2

1 7 5
2 5 9
3 6 8
4 7 7
5 5 6
The 95% confidence interval for the difference between the two population means is
70. In order to determine whether or not there is a significant difference between the hourly wages of two
companies, the following data have been accumulated.

Company A Company B
Sample size 80 60
Sample mean $16.75 $16.25
Population standard deviation $1.00 $0.95
The test statistic value is
71. An insurance company selected samples of clients under 18 years of age and over 18 and recorded the
number of accidents they had in the previous year. The results are shown below.

Under Age of 18 Over Age of 18

n1 = 500 n2 = 600
Number of accidents = 180 Number of accidents = 150

72. We are interested in determining if the accident proportions differ between the two age groups.

72. In order to determine whether or not there is a significant difference between the hourly wages of
two companies, the following data have been accumulated.

Company 1 Company 2
n1 = 80 n2 = 60
= $10.80 = = $10.00
= $2.00 = $1.50
Write the hypothesis and test the hypothesis.

73. In order to estimate the difference between the yearly incomes of marketing managers in the East and West
of the United States, the following information was gathered.

East West
n1 = 40 n2 = 45
= 72 (in $1,000) = 78 (in $1,000)
s1 = 6 (in $1,000) s2 = 8 (in $1,000)

a. Develop an interval estimate for the difference between the average yearly incomes of the
marketing managers in the East and West. Use  = 0.05.
b. At 95% confidence, use the p-value approach and test to determine if the average yearly
 income of marketing managers in the East is significantly different from the West.

74. A potential investor conducted a 144 day survey in each theater in order to determine the difference
between the average daily attendance at the North Mall and South Mall theaters. The North Mall
Theater averaged 630 patrons per day; while the South Mall Theater averaged 598 patrons per day.
From past information, it is known that the variance for North Mall is 1,000; while the variance for
the South Mall is 1,304. Develop a 95% confidence interval for the difference between the average
daily attendance at the two theaters
75. In order to determine whether or not a driver's education course improves the scores on a driving
exam, a sample of 6 students were given the exam before and after taking the course. The results are
shown below.
Let d = Score After - Score Before.

Score Score
Student Before the Course After the Course
1 83 87
2 89 88
3 93 91
4 77 77
5 86 93
6 79 83

a. Compute the test statistic.

b. At 95% confidence test to see if taking the course actually increased scores on the driving
exam.

76.Independent random samples taken at two local malls provided the following information regarding
purchases by patrons of the two malls.

Hamilton Place Eastgate

Sample Size 85 93
Average Purchase $143 $150
Standard Deviation $22 $18

We want to determine whether or not there is a significant difference between the average purchases by
the patrons of the two malls.

77. A sample of 60 items from population 1 has a sample variance of 8 while a sample of 40 items from
population 2 has a sample variance of 10. If we test whether the variances of the two populations are
equal, the test statistic will have a value of
78. When individuals in a sample of 150 were asked whether or not they supported capital punishment,
the following information was obtained.

Do you support Number of

capital punishment? individuals
 Yes 40
No 60
No Opinion 50

79. Determine whether or not the opinions of the individuals (as to Yes, No, and No Opinion) are
80.
uniformly distributed.

79 The table below gives beverage preferences for random samples of teens and adults.

Teens Adults Total

Coffee 50 200 250
Tea 100 150 250
Soft Drink 200 200 400
Other 50 50 100
400 400 600 1,000

We are asked to test for independence between age (i.e., adult and teen) and drink preferences.

80. The results of a recent study regarding smoking and three types of illness are shown in the following table.

Illness Non-Smokers Smokers Totals

Emphysema 20 60 80
Heart problem 70 80 150
Cancer 30 40 70
Totals 120 180 300

We are interested in determining whether or not illness is independent of smoking.

81. The following table shows the results of recent study regarding gender of individuals and their selected field
of study.

Field of study Male Female TOTAL

Medicine 80 40 120
Business 60 20 80
Engineering 160 40 200
TOTAL 300 100 400

We want to determine if the selected field of study is independent of gender.

82. In a completely randomized design involving three treatments, the following information is provided:

Treatment 1 Treatment 2 Treatment 3

Sample Size 5 10 5
Sample Mean 4 8 9
 The overall mean for all the treatments is

83. Random samples were selected from three populations. The data obtained are shown below. Please note that
the sample sizes are not equal.

Treatment 1 Treatment 2 Treatment 3

37 43 28
33 39 32
36 35 33
38 38
40

a. Compute the overall mean .

b. At 95% confidence using the critical value and p-value approaches, test to see if there is a
significant difference among the means.
84 The test scores for selected samples of sociology students who took the course from three different instructors
are shown below.

Instructor A Instructor B Instructor C

83 90 85
60 55 90
80 84 90
85 91 95
71 85 80

At  = 0.05, test to see if there is a significant difference among the averages of the three groups

85. Assume you have noted the following prices for books and the number of pages that each book contains.

Book Pages (x) Price (y)

A 500 $7.00
B 700 7.50
C 750 9.00
D 590 6.50
E 540 7.50
F 650 7.00
G 480 4.50

a. Develop a least-squares estimated regression line.

b. Compute the coefficient of determination and explain its meaning.

86. Jason believes that the sales of coffee at his coffee shop depend upon the weather. He has taken a sample of 6
days. Below you are given the results of the sample.

Cups of Coffee Sold Temperature

350 50
200 60
210 70
 100 80
60 90
40 100

a. Which variable is the dependent variable?

b. Compute the least squares estimated line.
c. Compute the correlation coefficient between temperature and the sales of coffee.
Predict sales of a 90 degree day.
.
87. The following regression model has been proposed to predict monthly sales at a shoe store.

a. Predict sales (in dollars) for the shoe store if the competitor's previous month's sales were
$9,000, the store's previous month's sales were $30,000, and no radio advertisements were run.
b. Predict sales (in dollars) for the shoe store if the competitor's previous month's sales were
$9,000, the store's previous month's sales were $30,000, and 10 radio advertisements were run.

88 The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of
company's stocks sold (x1), and the volume of exchange (in millions) on the New York Stock Exchange
(x2) are shown below.

Day (y) (x1) (x2)

1 87.50 950 11.00
2 86.00 945 11.25
3 84.00 940 11.75
4 83.00 930 11.75
5 84.50 935 12.00
6 84.00 935 13.00
7 82.00 932 13.25
8 80.00 938 14.50
9 78.50 925 15.00
10 79.00 900 16.50
11 77.00 875 17.00
12 77.50 870 17.50

Find and Interpret the coefficients of the estimated regression equation

89. The following time series shows the sales of a clothing store over a 10-week period.

Sales
Week ($1,000s)
1 15
2 16
3 19
4 18
5 19
6 20
7 19
8 22
9 15
10 21

. Compute a 4-week moving average for the above time series.

90 The sales volumes of CMM, Inc., a computer firm, for the past 8 years is given below.

Year Sales
(t) (In Millions of Dollars)
1 2
2 3
3 5
4 4
5 6
6 8
7 9
8 9

a. Develop a linear trend expression for the above time series.

b. Forecast sales for period 9.

91. The following data show the quarterly sales of Amazing Graphics, Inc. for the years 6 through 8.

Year Quarter Sales

6 1 2.5
2 1.5
3 2.4
4 1.6
7 1 2.0
2 1.4
3 1.7
4 1.9
8 1 2.5
2 2.0
3 2.4
4 2.1
 a. Compute the four-quarter moving average values for the above time series.
b. Compute the seasonal factors for the four quarters.
c. Use the seasonal factors developed in Part b to adjust the forecast for the effect of season for
year 6.

92 The following time series gives the number of units sold during 5 years at a boat dealership.

Year Quarter Number of Units

1 1 300
2 240
3 240
4 290
2 1 350
2 300
3 280
4 320
3 1 410
2 400
3 390
4 410
4 1 490
2 450
3 440
4 510
5 1 540
2 530
3 520
4 540

a. Find the four-quarter centered moving averages.

b. Plot the series and the moving averages on a graph.
c. Compute the seasonal-irregular component.
d. Compute the seasonal factors for all four quarters.
e. Compute the deseasonalized time series for sales.
f. Calculate the linear trend from the deseasonalized sales.
g. Forecast the number of units sold in each quarter of year 6.

93.The quarterly sales (in thousands of copies) for a specific educational software over the past three years are
given in the following table.

2003 2004 2005

Quarter 1 170 180 190

Quarter 2 111 96 120
Quarter 3 270 280 290
 Quarter 4 250 220 223

a. Compute the four seasonal factors (Seasonal Indexes). Show all of your computations.
b. The trend for these data is Trend = 174 + 4 t (t represents time, where t=1 for Quarter 1 of
2003 and t=12 for Quarter 4 of 2005). Forecast sales for the first quarter of 2006 using the
trend and seasonal indexes. Show all of your computations.

94. The following time series shows the sales of a clothing store over a 10-week period.

Sales
Week ($1,000s)
1 15
2 16
3 19
4 18
5 19
6 20
7 19
8 22
9 15
10 21

a. Compute a 4-week moving average for the above time series.

b. Compute the mean square error (MSE) for the 4-week moving average forecast.
c. Use  = 0.3 to compute the exponential smoothing values for the time series.
d. Forecast sales for week 11.

95. The following data show the quarterly sales of Amazing Graphics, Inc. for the years 6 through 8.

Year Quarter Sales

6 1 2.5
2 1.5
3 2.4
4 1.6
7 1 2.0
2 1.4
3 1.7
4 1.9
8 1 2.5
2 2.0
3 2.4
4 2.1

a. Compute the four-quarter moving average values for the above time series.
b. Compute the seasonal factors for the four quarters.
c. Use the seasonal factors developed in Part b to adjust the forecast for the effect of season for
year 6.

96. The yearly series below exhibits a long-term trend. Use the appropriate forecasting technique to produce
forecasts for years 11 and 12.
 Year Time Series Value
1 120
2 132
3 148
4 152
5 160
6 175
7 182
8 190
9 195
10 205

97. The following time series gives the number of units sold during 5 years at a boat dealership.

Year Quarter Number of Units

1 1 300
2 240
3 240
4 290
2 1 350
2 300
3 280
4 320
3 1 410
2 400
3 390
4 410
4 1 490
2 450
3 440
4 510
5 1 540
2 530
3 520
4 540

a. Find the four-quarter centered moving averages.

b. Plot the series and the moving averages on a graph.
c. Compute the seasonal-irregular component.
d. Compute the seasonal factors for all four quarters.
e. Compute the deseasonalized time series for sales.
f. Calculate the linear trend from the deseasonalized sales.
g. Forecast the number of units sold in each quarter of year 6.

98. Variance of X = 9, Regression equations are 40 x – 18 y = 214, 8x – 10 y + 66 = 0 , Find mean values of x

and y. Find coefficient of correlation . Find standard deviation of y.

99. The sales of a company for the year 2010 to 2017 are given below
2001 2002 2003 2004 2005 2006 2007
32 47 65 92 190 132 275
 Estimate sales figures for the year 2020 using an equation of the form y = ab x where x is years y is sales

100. Apply method of link relatives and calculate seasonal indices

Quarter 2013 2014 2015 2016 2017

I 6 5.4 6.8 7.2 6.6
II 6.5 7.9 6.5 5.8 7.3
III 7.8 8.4 9.3 7.5 8
IV 8.7 7.3 6.4 8.5 7.1

Short Answer for 3 marks

The quail corporation has data matching years of experience on the part of manager with number of
grievances filed last year by the employees reporting to the manager. Find the rank correlation coefficient
and comment on it.
Years of
7 18 17 4 21 27 20 14 15 10
experience
No of
5 2 4 4 3 2 4 5 4 6
Grievances

Essay Answer for 6 marks

The number of people admitted to valley nursing home per quarter is given in the following table

Year Spring Summer Fall Winter

2014 29 30 41 43
2015 27 34 45 48
2016 33 36 46 51
2017 34 40 47 53

Calculate the seasonal indices for this data