Problem 1

The credit card lawyers, by region. The Nilson Report (December 2015) published a list of the
top 150 credit card issuers worldwide. The issuers (e.g. American Express, MasterCard, Visa)
were ranked based on outstanding debt during the year. The table gives a breakdown of the
regions in the world severed by the top 150 credit card issuers.

Worldwide Region Number of credit

card issuers.
Asia-Pacific 48
Canada 10
Europe 34
Latin America 29
Middle East/Asia 3
United States 26
Total 150

a. One of the top 150 credit card issuers is selected at random, and the region it serves is
determined. What type of data (quantitative or qualitative) is measured?

Based on the given data it is measured quantitative.

b. For each region in the table, calculate the percentage of the 150 top credit card issuers, that
fall into that region.
Worldwide Region Number of credit Percentage of
card issuers. credit card issuers.
Asia-Pacific 48 32.00%
Canada 10 6.67%
Europe 34 22.67%
Latin America 29 19.33%
Middle East/Asia 3 2.00%
United States 26 17.33
Total 150 100%
c. Use the percentages, part b, to construct a relative frequency bar graph for the data
summarized in the table.

d. Based on the bar graph, make a statement about the regions that most of the top 150 credit
card users serve.

Based on the generated bar graph Asia-Pacific has the highest percentage of credit card issuer
which is 32%. On the other hand, the Middle East/Asia has the lowest percentage credit card
with a data of 2%. The second highest is Europe with 22.67%, followed by Latin America
with 19.33%. While the second to the last is Canada with a data of 19.33%.

Problem 3

Surface roughness of oil field pipe. Oil field pipes are internally coated in order to prevent
corrosion. Researchers at the University of Louisiana, Lafayette, investigated the influence that
coating may have on the surface roughness of oil filed pipes (Anti-corrosion Methods and
Materials, Vol. 50, 2003). A scanning probe instrument was used to measure the surface
roughness of each in sample of 20 sections of coated interior pipe. The data (in micrometers) are
provided in the table.

1.72 2.50 2.16 2.13 1.06 2.24 2.31 2.03 1.09 1.40
2.57 2.64 1.26 2.05 1.19 2.13 1.27 1.51 2.41 1.95
a. Find and interpret the mean of the sample.

The mean of the sample is 1.881. The data portrays that the middle value is 1.881
although it is easily affected by the outliers.
b. Find and interpret the median of the sample

The median of the sample is 2.04. The median is also portrays middle value, but outliers
are less likely to affect it.

c. Which measure of central tendency – the mean or the media best describes the surface
roughness of the sampled pipe sections? Explain.

The best central of tendency that describes the sample pipe section is median, because it
is applicable for skewed distributions while mean are for symmetric distribution. And the
median also portrays the most accurate central tendency.
Problem 5

Calculate the range, variance, and standard deviation for the following samples.

Problem 7
Compare the z-scores to decide which of the following x values lie the greatest distance above
the mean and the greatest distance below the mean.
a . x=100 , μ=50 , σ =25
b . x=1 , μ=4 , σ=1
c . x=0 , μ=200 , σ=100
a . x=10 , μ=5 , σ =3

100−50 0−20 0
a. =2 c. =−2
25 100
1−4 10−5
b. =−3 d. =1.667
1 3
 x bhas the greatest negative z-score in which lies the greatest distance below mean, while
x a has the greatest positive z-score in which lies the greatest distance above mean.

Problem 9
Consider the following two sample data sets

a. Construct a box plot for each data set.

 b. Identify any outliers that may exist in the two data sets.
The outliers in sample A are 85 and 100. On the other hand, the outliers in sample B is
140.

Problem 11
Compute the number of ways you can select n elements from N elements for each of the
following:
a. n = 2, N = 5
10
b. n = 3, N= 6
20
c. n = 5, N = 20
15,504

Problem 13
Two fair dice are tossed, and the face on each die is observed.
a. Used a tree diagram to find the 36 sample points contained in the sample space.
 1
2
3
1
4
5
6
1
2
3
2
4
5
6
1
2
3
3
4
5
6
1
2
3
4
4
5
6
1
2
3
5
4
5
6
1
2
3
6
4
5
6

(1,1) (1,2) (1,3) (1,4) (1,5) (1,6) (2,1) (2,2) (2,3) (2,4) (2,5) (2,6) (3,1) (3,2) (3,3) (3,4) (3,5) (3,6) 
(4,1) (4,2) (4,3) (4,4) (4,5) (4,6) (5,1) (5,2) (5,3) (5,4) (5,5) (5,6) (6,1) (6,2) (6,3) (6,4) (6,5) (6,6) 

b. Assign probabilities to the sample points in part a

P((i,j)) = 1/36¿ ( 1≤ i≤ 6 , 1 ≤ j≤ 6 )

c. Find the probability of each of the following events.

a. 3 appears on each of two dice
A: ((3,3))
P(A) = 1/36 or 0.0278

b. The sum of the numbers is equal to 7.

P (B): ((1,6), (2,5), (3,4), (4,3), (5,2), (6,1))
P(B): 6 x 1/36 = 1/6 or 0.1667
 c. The sum of the numbers is even
P(C): ((1,1), (1,3), (1,5), (2,2), (2,4), (2,6), (3,1), (3,3), (3,5), (4,2), (4,4), (4,6),
(5,1), (5,3), (5,5), (6,2), (6,4), (6,6))
P (C) = 18 X 1/36 = 1/2 or 0.5

Problem 15
Suppose P(A) = .4, P(B) = .7, and P(A∩B) = .3.
Find the following probabilities
a. P( Bc ) : 1 – 0.7 = 0.3
b. P( Ac ) : 1 – 0.4 = 0.6
c. P(A∪B) : 0.4 + 0.7 – 0.3 = 0.8

Problem 17
For two events, A and B, P(A) - .4, P(B) = .2 and P(A∩B) = .1:
a. Find P(AlB) = 0.1/0.2 = 0.5
b. Find P (BlA) = 0.1/0.4 = 0.25
c. Are A and B independent events? No

Problem 19
An experiment results in one of three mutually exclusive events, A, B or C. It is known that P(A)
=.30, P(B) = 0.55, and P (C) = .15. Find each of the following.

a. P(A∪B): 0.30 + 0.55 = 0.85

b. P (A∩B): 0
c. P(AlB) = 0/ 0.55 = 0
d. P(B∪C): .55 + .15 = .70
e. Are B and C independent events? Explain
No. Events B and C are mutually exclusive events. P(B)P(C) = .55 x .15 = 0.0825.
Because P(B∩C) ≠ P(B)P(C), then events B and C are not independent.