Name Of The Student – Aakash Gupta

Roll No. – 25-1019

Reg No. – 25-1019
Specialization – Marketing
Batch – 2020-22
Institute – BIMHRD
Semester – 1st
Subject Name – Business Statistics
Assignment No. – IV
Submission Date – 27/11/2020
Total No. Of Pages Written – 22
Q1.
The life of a certain type of electronic component is normally distributed with mean= 220
hours deviation of 25 hours. Do you agree that the probability that the mean life of sample of
20 components will be greater than 225 hours will be higher than probability that the mean
life of a sample of 40 components will be greater than to 225 hours? Show by calculations.
A.
μ = 220hours.
σ =25hours.
P ( x́>225 )

For, P ( x́=225 )
n = 20
σ 25
SE X́ = = =5.5901
√ n √ 20
x́ −μ 225−220
Z= = =0.89
SE X́ 5.5901

P ( x́=225 )=0.3133
P ( x́>225 )=0.5−0.3133=0.1867
P ( x́>225 )

For, P ( x́=225 )
n = 40
σ 25
SE X́ = = =3.9528
√ n √ 40
x́ −μ 225−220
Z= = =1.26
SE X́ 3.9528

P ( x́=225 )=0.3962
P ( x́>225 )=0.5−0.3962=0.1038
∴ Yes, the probability that the mean life of sample of 20 components will be greater
than 225 hours will be higher than probability that the mean life of a sample of 40
components will be greater than to 225 hours.
Q2.
An orange juice producer buys all oranges from a large Orange groove. The amount of juice
squeezed from each orange is approximately normally distributed with mean of 4.70 ounces
and a standard deviation of 0.40 ounces.
(a) What is the probability that randomly selected Orange will contains between 5 and 5.50
ounces?
(b) Between what two values (in ounces) symmetrically distributed around the population
mean will 80% of oranges fall?
(c) Suppose a sample of 25 oranges is selected. What is the probability that the sample mean
will be at least 4.60 ounces?
A.
Case 1:
μ = 4.70ozs
σ = 0.40ozs
P ( 5≤ x́ ≤ 5.50 )

For, P ( x́=5 )
x́ −μ 5−4.70
Z= = =0.75
σ 0.40
P ( x́=5 )=0.2734

For, P ( x́=5.5 )
x́ −μ 5.5−4.70
Z= = =2
σ 0.40
P ( x́=5.5 )=0.4772
∴ P ( 5 ≤ x́ ≤ 5.50 )=P ( x́=5.5 )−P ( x́=5 ) =0.4772−0.2734=0.2038
∴ The probability that randomly selected Orange will contains between 5 and 5.50
ounces is 0.2038

Case 2:
If 80% is symmetrically divided around the mean 40% is on each side.
∴ P ( x )=0.4 → Z=± 1.29
x −μ x−4.7
Z= = =± 1.29
σ 0.4
∴ x=[ ( ±1.29 )∗( 0.4 ) ]+ 4.7
∴ x=5.216∧x=4.184
∴ x ranges from 4.184ounces to 5.216ounces symmetrically distributed around the
population mean will 80% of oranges fall
Case 3:
n = 25oranges
P ( x́ ≥ 4.60 )
σ 0.40
SE X́ = = =0.08
√ 25 5
x́ −μ 4.6−4.7
Z= = =−1.25
SE X́ 0.08

P ( x́=4.6 )=0.3944
P ( x́> 4.6 )=0.5+0.3944=0.8944
∴The probability that the sample mean will be at least 4.60 ounces is 0.8944
Q3.
For a random sample of size 30 from a population with mean of 205 and standard deviation
of 25, what is the probability that the sample mean will be: -
a. Greater than 210?
b. Less than 200?
c. Between 190 and 200?
d. Either less than 210 or more than 220?
A.
μ = 205
σ = 25
n = 30
case 1:
P ( x́>210 )

For, P ( x́=210 )
σ 25
SE X́ = = =4.5644
√ n √ 30
x́ −μ 210−205
Z= = =1.09
SE X́ 4.5644

P ( x́=210 )=0.3621
P ( x́>210 )=0.5−0.3621=0.1379
∴ The probability that the sample mean will be greater than 210 is 0.1379
case 2:
P ( x́<200 )

For, P ( x́=200 )
σ 25
SE X́ = = =4.5644
√ n √ 30
x́ −μ 200−205
Z= = =−1.09
SE X́ 4.5644

P ( x́=200 )=0.3621
P ( x́<200 )=0.5−0.3621=0.1379
∴ The probability that the sample mean will be less than 200 is 0.1379
Case 3:
P ( 190≤ x́ ≤ 200 )

For, P ( x́=190 )
x́ −μ 190−205
Z= = =−3.28
SE X́ 4.5644

P ( x́=190 )=0.49948

For, P ( x́=200 )
x́ −μ 200−205
Z= = =−1.09
SE X́ 0.40

P ( x́=200 )=0.3621
∴ P ( 190 ≤ x́ ≤ 200 )=P ( x́=190 )−P ( x́=200 ) =0.49948−0.3621=0.13738
∴ The probability that the sample mean will be between 190 and 200 is 0.13738
Case 4:
P ( x́<210 )

For, P ( x́=210 )
σ 25
SE X́ = = =4.5644
√ n √ 30
x́ −μ 210−205
Z= = =1.09
SE X́ 4.5644

P ( x́=210 )=0.3621
P ( x́<210 )=0.5+0.3621=0.8621
P ( x́>220 )

For, P ( x́=220 )
σ 25
SE X́ = = =4.5644
√ n √ 30
x́ −μ 220−205
Z= = =3.28
SE X́ 4.5644

P ( x́=220 )=0.49948
P ( x́>220 )=0.5−0.49948=0.00052

For, P ( x́<210 )∨P ( x́ >220 )=P ( x́ <210 )+ P ( x́ >220 )=0.8621+0.00052=0.86262

∴ The probability that the sample mean will be either less than 210 or more than 220 is
0.86262
Q4.
Given a population each of those whose elements falls in one of the two categories, known as
success and failure respectively, where probability of success is 0.4. From this population, a
sample of size 600 is taken.
a. What is the expected number of success?
b. What is the expected value and the standard error of the distribution of proportion of
success?
c. What is the probability that the proportion of the success in the sample will be at most
0.43?
d. What is the probability that the percentage of failure in the sample will be taken
between 55 and 65?
A.
Case 1:
Sample size n = 600
Probability of success = proportion of success = π = 0.4
Expected number of success = μ = n * π = 0.4 * 600 = 240
Case 2:
Expected value of the distribution of success = π = 0.4

π∗( 1−π ) 0.4∗( 1−0.4 )

Standard error of distribution of success ¿ SE p=
√ n √
=
600
=0.02

Case 3:
P (p ≤ 0.43)
For, P (p = 0.43)
p−π 0.43−0.4
Z= = =1.5
π∗( 1−π ) 0.4∗( 1−0.4 )
√ n √
600
P (p = 0.43) = 0.4332
∴ P (p ≤ 0.43) = 0.5 + 0.4332 = 0.9332
∴ Probability of proportion of success in the sample will at most be 0.43 is 0.9332.

Case 4:
π = 0.6
P (0.55 ≤ p ≤ 0.65)
P (p = 0.55)
p−(1−π ) 0 .55−(0.6)
Z= = =−2.5
π∗( 1−π ) 0.6∗( 1−0.6 )
√ n √ 600
P (p = 0.55) = 0.4938
P (p = 0.65)
p−π 0 .65−(0.6)
Z= = =2.5
π∗( 1−π ) 0.6∗( 1−0.6 )
√ n √ 600
P (p = 0.65) = 0.4938
∴ P (0.55 ≤ p ≤ 0.65) = P (p = 0.55) + P (p= 0.65) = 0.4938 + 0.4938 = 0.9876
∴ Probability that the percentage of failure to remain between 55 and 65 is 0.9876.

Q5.
Long distance telephone calls are normally distributed with the σ= 3 minutes.
(a) Obtain a 90% confidence interval for the population mean, µ if a random sample of 24
calls was found to have mean = 7.8 minutes.
(b) Obtain a 96% confidence interval for the population mean, µ if a random sample of 240
calls was found to have mean = 7.8 minutes.
A.
σ = 3minutes.
Case 1:
n = 24calls
x́=7.8 minutes
For, 90% of confidence level.
1 – α = 90%
α = 10% = 0.10
α/2 = 5% = 0.05
Z α =±1.65
2

σ 3
SEx́ = = =0.6124
√ n √ 24
x́− Z α ∗SE x́ < μ < x́+ Z α ∗SEx́ =7.8−[ 1.65∗0.6124 ] <7.8+ [ 1.65∗0.6124 ]
[ 2 ] [ 2 ]
∴ 6.790< μ<8.811
∴ The 90% confidence interval for μ = 24 is (6.790, 8.811)

Case 2:
n = 240calls
x́=7.8 minutes
For, 96% of confidence level.
1 – α = 96%
α = 4% = 0.40
α/2 = 2% = 0.02
Z α =±2.06
2

σ 3
SEx́ = = =0.1936
√ n √ 240
x́− Z α ∗SE x́ < μ < x́+ Z α ∗SEx́ =7.8−[ 2.06∗0.1936 ] <7.8+ [ 2.06∗0.1936 ]
[ 2 ] [ 2 ]
∴ 7.3955< μ <8.2045
∴ The 96% confidence interval for μ = 240 is (7.3955, 8.2045)

Q6.
In an automatic self-safety test conducted by a safety Research Centre, the average tyre
pressure in a sample of 102 Tyres was found to be 26 Pounds per square inch and the
standard deviation was 2.62 Pounds per square inch.
(a) What is estimated standard deviation of the population (population consists of 40 million
tyres).
(b) Calculate the standard error of the mean.
(c) Calculate a 92% confidence interval for population mean
A.
S = 2.62
x́=26
n = 102
Case 1:
σ =SE x́∗ √ n
 S 2.62
SEx́ = = =0.259
√ n √ 102
∴ σ=0.259∗√ 102=2.62
∴ Estimated standard deviation of the population is 2.62
Case 2:
S 2.62
SEx́ = = =0.259
√ n √ 102
∴ The standard error of the mean is 0.259
Case 3:
For, 92% of confidence level.
1 – α = 92%
α = 8% = 0.80
α/2 = 4% = 0.04
Z α =±1.76
2

x́− Z α ∗SE x́ < μ < x́+ Z α ∗SEx́ =26−[ 1.76∗0.259 ] < μ<26+ [ 1.76∗0.259 ]
[ 2 ] [ 2 ]
25.54416< μ<26.45584
∴ 92% confidence interval for population mean is (25.54416, 26.45584)
Q7.
A manufacturing company produces electric insulation if the insulators break when in use, a
short circuit is likely to occur. To test the strength of the insulator, destructive testing in high-
powered lab is carried out to determine how much force in pound is required to break the
insulators. It is desired to estimate the population mean force needed to break the insulator to
within ±25 pounds of the true value with 90% level of confidence. On the basis of study
taken in the previous year, the standard deviation is believed to be 120 pounds. What sample
size is needed? What sample size is needed if the level of confidence is to 95%?
A.
For, 90% of confidence level.
1 – α = 90%
α = 10% = 0.10
α/2 = 5% = 0.05
Z α =±1.65
2

E = 25

Z α 2∗σ 2
2 1.652∗1202
n= = =62.7264 ≅ 63
E2 25 2
∴ The sample size is needed for 90% of confidence level is 63

For, 95% of confidence level.

1 – α = 95%
α = 5% = 0.05
α/2 = 2.5% = 0.025
Z α =±1.96
2

Z α 2∗σ 2
2 1.962∗1202
n= = =88.5104 ≅ 89
E2 25 2
∴ The sample size is needed for 95% of confidence level is 89

Q8.
A bank officer wants to determine the amount of average total monthly deposit per customer
at the bank. He believes on estimate of this average amount using a confidence interval is
sufficient. How large a sample should he take to be within 300 rupees of actual average with
99% confidence? He assumes standard deviation of monthly deposit for all the customers is
about 1200 rupees?
A.
σ = 1200rupees.
E = 300rupees.
For, 99% of confidence level.
1 – α = 99%
α = 1% = 0.01
α/2 = 0.5% = 0.005
Z α =±2.58
2

Z α 2∗σ 2
2 2.582∗12002
n= = =106.5024 ≅107
E2 300 2
∴ The sample size he would take to be within 300 rupees of actual average with 99% of
confidence level is 107

Q9.
At a Palika car parking lot, 42 cars out of total 150 selected at random were found to be
white
(a) Obtain a point estimate of the proportion of white car in the city and a 98% confidence
interval of proportion?
(b) How large a sample would be needed to estimate the proportion of white cars within
±0.08 of the true proportion at 90% confidence level?
(c) How large a sample would be needed to estimate the proportion of white cars within
±0.04 of the true proportion of 95% confidence level?
A.
Case 1:
p = 42/150 = 0.28

p∗( 1− p ) 0.28∗( 1−0.28 )

SE p=
√ n √
=
150
=0.0367

For, 98% of confidence level.

1 – α = 98%
α = 2% = 0.02
α/2 = 1% = 0.01
Z α =±2.33
2

p− Z α ∗SE p <π < p+ Z α ∗SE p =0.28−[ 2.33∗0.0367 ] < π < 0.28+ [ 2.33∗0.0367 ]
[ 2 ] [ 2 ]
0.194489< π <0.365511
∴ The point estimation is p = 0.28 and the 98% confidence interval of proportion for
white cars is (0.194489, 0.365511)
Case 2:
For, 90% of confidence level.
1 – α = 90%
α = 10% = 0.10
α/2 = 5% = 0.05
Z α =±1.65
2

0.28∗( 1−0.28 )
E=Z α ∗SE p =1.65∗
2 √ n
=0.08

1.65 2
n= ( )
0.08
∗0.2016=85.75875 ≅ 86 cars

∴ Sample size needed to estimate the proportion of white cars within ±0.08 of the true
proportion at 90% confidence level is 80cars.

Case 3:
For, 95% of confidence level.
1 – α = 95%
α = 5% = 0.05
α/2 = 2.5% = 0.025
Z α =±1.96
2

0.28∗(1−0.28 )
E=Z α ∗SE p =1.96∗
2 √ n
=0.04

1.96 2
n= ( )
0.04
∗0.2016=484.04 ≅ 484 cars

∴ Sample size needed to estimate the proportion of white cars within ±0.04 of the true
proportion at 95% confidence level is 484cars.

Q10.
Johnson's machine company has a contract with one of its customers to supply machine
pump gears. One requirement is that diameter of its gear be within specific limits. Here are
the diameters in (inches) of a sample of 20 gears.
4.01 4.00 4.02 4.20 4.03 4.00 3.98 3.99 3.99 4.01
3.99 3.98 3.97 4.00 4.02 4.01 1.02 4.00 4.01 3.99
What can John say to its customer about the diameters of 95% of the gears they are
receiving.
A.
n = 20
Σx 80.22
x́= = =4.011
n 20
 x x−x́ ( x−x́ )2
4.01 -0.001 0.000001
4.00 -0.011 0.000121
4.02 0.009 0.000081
4.20 0.189 0.035721
4.03 0.019 0.000361
4.00 -0.011 0.000121
3.98 -0.031 0.000961
3.99 -0.021 0.000441
3.99 -0.021 0.000441
4.01 -0.001 0.000001
3.99 -0.021 0.000441
3.98 -0.031 0.000961
3.97 -0.041 0.001681
4.00 -0.011 0.000121
4.02 0.009 0.000081
4.01 -0.001 0.000001
4.02 0.009 0.000081
4.00 -0.011 0.000121
4.01 -0.001 0.000001
3.99 -0.021 0.000441
Σx=80.22 Σ ( x −x́ ) =0 Σ ( x −x́ )2 =0.04218

2
Σ ( x− x́ )
S=
√
n−1
= (√ 0.04218
19 )
=0.04712

S 0.04712
SEx́ = = =0.1054
√n √ 20
For, 95% of confidence level.
1 – α = 95%
α = 5% = 0.05
α/2 = 2.5% = 0.025
df = n – 1 = 20 – 1 = 19
t α =±2.093
2

x́− t α ∗SE x́ < μ< x́ + t α ∗SE x́ =4.011−[ 2.093∗0.1054 ] < μ< 4.011+ [ 2.093∗0.1054 ]
[ 2 ] [ 2 ]
3.791< μ< 4.2313
∴ John can say that 95% of the gear consumer are receiving will have diameter range as
(3.791, 4.2313)