ASSIGNMENT

1. During a socio-economic survey conducted in a rural area, the concerned authorities came
to the conclusion that mean level of income in the area was Rs 150 per month with a
standard deviation of Rs 20 and that income is approximately normally distributed. The
total population of the area was 4000. Compute the number of people who fell into the
following categories:
(i) monthly income less than Rs 125 [423]
(ii) monthly income greater than Rs 100 but less than or equal to Rs 150. [1975]
(iii)monthly income greater than Rs 200. [25]

2. The demand of a product is approximately normally distributed with an average demand

of 300 units per month. The probability of demand being less than 280 units is 0.025.
What is the probability that demand is more than 315 units? [0.07078]

3. Approximately 30% of the time demand of a product is more than 250 units, and 20% of
the time demand is less than 200 units. What is the average demand? What is the standard
deviation of demand? (Demand can be assumed to follow a normal distribution)
[Ans. 230.8, 36.23]

4. What should be the standard deviation of a bolt-making machine if 94% of the bolt lengths
are to be in an interval extending from 0.0047 m.m. to the left of the mean to 0.0047 to the
right of the mean. [Ans: 0.0025]

5. The average time before the gear train of an automobile needs a major overhaul is 56
months with standard deviation of 16 months. The manufacturer wishes to warranty these
gear trains. For how many months should the manufacturer warrant gear trains to limit the
number of warranty overhauls to no more than 2.28% of the automobiles sold? Assume
normal distribution for number of months before an overhaul is required.
[Ans: 24]

6. The average marks secured by PGP-I students in Section ‘A’ in QAM-I course was 80 and
the coefficient of variation was 5%. If the top 2% of the students registered for the course
are to receive A+ grade, then what is the minimum mark a student must get in order to
receive A+ grade? [Ans: 88.24]