Faculty of Business Studies

BUS102
Introduction to Statistics

Final Examination - THE – Version A

2020-2021 /Fall Semester

Number of Exam Pages: 10 Time Allowed: 48 hours
including this cover sheet ((

Question Total grade allocated Student’s

Marker Name and Signature
Number for this question earned grade
Question 1 20
Question 2 20
Question 3 20
Question 4 15
Question 5 15
Question 6 10
Total in Figures 100
Total in Letters
Grades
Instructions
1. This examination consists of Six questions. You are required to answer all questions.
2. Keep in mind that any form of cheating will not be tolerated and will subject you to AOU
cheating policy.
3. Show all calculations in your answers

BUS102/ THE-Final – Ver A 1 of 12 Fall/2020-2021

 Take Home Exam for Final Assignment 2020-2021/Fall

BUS102 - Introduction to Statistics

Cut-Off Date : 27 – January - 2021 Cut off Time:

Total Marks : 100 Duration: 48 Hours

Contents:
Warnings and Declaration……………………………………….…………………………………………………………….... 2
Question 1 ……….…………………………………………………………………………………………….……………………..…. 3
Question 2 ……………………………………………………………………………………………………………….………….…… 4
Question 3 ...……………………………………………………………………………………………………………………………… 5
Question 4 ………….…………………………………………………………………………………………………………….….…… 6
Question 5…………………………………………………………………………………………………………………………………. 7
Question 6…………………………………………………………………………………………………………………………………. 7
Table Values……………………………………………………………………………………………………………………………8 - 10
Plagiarism Warning:
As per AOU rules and regulations, all students are required to submit their own THE-Final work and avoid
plagiarism. The AOU has implemented sophisticated techniques for plagiarism detection. You will be penalized for
any act of plagiarism as per the AOU's rules and regulations.

Declaration of No Plagiarism by Student (to be signed and submitted by student with THE-Final work):
I hereby declare that this submitted THE-Final work is a result of my own efforts and I have not
plagiarized any other person's work.

Name of Student: -----Abdul Hussain Syed --------------------------------------------------------------------

Student ID No.-----------------190599-----------------------------------------------------------
Signature: …………………………Abdul Hussain..…………………………………………………………………..
Section No. -----------------------101-------------------------------------------------------------
Date:……………………………………25 Jan 2021…………………………………………………………….…………

BUS102/ THE-Final – Ver A 2 of 12 Fall/2020-2021

Question 1: (20 points)

(A) The number of mobile phones sold daily at MEGA electronics has the following probability
distribution.
X: # of mobiles sold 18 19 22 24
P(X=x) 0.4 0.2 0.3 0.1

a) What is the mean of the number of mobiles sold on a given day?

Mean = E (x) = ∑x. p[x=x]

= 18(0.4) + 19(0.2) + 22(0.3) + 24(0.1)
= 20

b) What is the variance of the number of mobiles sold on a given day?

Variance = v (x) = E(x2) - [E(x)] 2

E(x2) = ∑x2.p[x=x]
= (18) 2 (0.4) + (19) 2 (0.2) + (22) 2 (0.3) + (24) 2 (0.1)
= 129.6 + 72.2 + 145.2 + 57.6
= 404.6
Var (x) = 404.6 – (20) 2
= 4.6

(B) A Pharmaceutical company claims that a new drug is effective against COVID-19 60% of
the time. The drug is tested on 24 selected patients.

a) Use the Binomial distribution to find the probability that exactly 16 patients recovered
from COVID-19? (Round your answer to the nearest thousandth).

a) Probability of 16 patients being recovered

p = 60% => 0.6
q = 1-P = 1-0.6 = 0.4
n = 24
P(X=X) = nCx * px *qn-x
= 24C16 * 0.616 * 0.48
= 0.13597

b) What is the mean of the number of patients who recovered from COVID-19?

The mean value as per Binomial distribution is given by

np = 24 * 0.6
= 14.4

BUS102/ THE-Final – Ver A 3 of 12 Fall/2020-2021

 c) What is the variance of the number of patients who recovered from COVID-19?
The variance of the number of patients
npq = 24 * 0.6*0.4
= 5.7

Question 2 (20 points)

In an elementary school there are 25 teachers and 5 administrators. A group of 12 is to be

selected to participate in an educational workshop.

a) What is the probability of having exactly 8 teachers in the group? (Round your answer to
the nearest thousandth).

Total No. of teachers = 25

Total No. of Administrators = 5
Probability of selecting exactly 8 teachers will be

b) What is the probability of having no administrators in the group? (Round your answer to
the nearest thousandth).

BUS102/ THE-Final – Ver A 4 of 12 Fall/2020-2021

Question 3: (20 points)

The volume of milk in bottles from a particular production line is normally distributed with mean
μ = 960 ml and standard deviation σ =25 ml.

(i) What is the probability that a randomly selected bottle will contain more than 890 ml of milk?

Z= X-µ
σ
= 890 – 960
25
= -2.8

( )
Pr (X > 890) = Pr Z > 890 – 960 = Pr (Z > -2.8)
25
= 1-0.0026 = 0.9974

(ii) What is the probability that a randomly selected bottle will contain more than 1020 ml of
milk?

Z= X-µ
σ
= 1020 – 960
25
= 2.4

( )
Pr (X > 1020) = Pr Z > 1020 – 960 = Pr (Z > 2.4)
25
= 1 - 0.9918 = 0.0082

(iii) What is the probability that a randomly selected bottle will contain between 935 ml and 985
ml of milk?

Z1= X-µ
σ
= 935 – 960
25
= -1

BUS102/ THE-Final – Ver A 5 of 12 Fall/2020-2021

Z2= X-µ
σ
= 985 – 960
25
=1

( )
Pr (935 < x < 985) = Pr Z < 935 – 960 < z < 985 – 960 = Pr (-1 < z < 1)
25 25
= Pr (z < 1) – Pr (z < -1)
= 0.8413 – 0.1587
= 0.6827

Question 4: (15 points)

The Intelligence Quotient (IQ) test scores for adults are normally distributed with a population
mean of 100 and a population standard deviation of 15.

(i) What is the probability we could select a sample of 50 adults and find the mean score of this
sample is less than 95?

Answer 4
(i)
Since, mean = 100 and standard deviation = 15
P (x < 95) = P (x - µ < 95 – 100)
= P (x - µ < 95 – 100)
σ 15

Z = x - µ = 95 – 100 = -0.33
σ 15
P (x < 95) = p (z < -0.33)
P (z < -0.33) = 0.3707

(ii) What is the probability we could select a sample of 50 adults and find the mean score of this
sample is between 94 and 106?

BUS102/ THE-Final – Ver A 6 of 12 Fall/2020-2021

Question 5: (15 points)

(A) A sample of 20 randomly chosen water melons was taken from a large population, and their
weights were measured. The mean weight of the sample was X =100 lb. and the standard
deviation was S =15 lb.

Construct a 90% confidence interval for the mean weight of the whole population of water melons.

Answer 5

(A)
CI = X̄ ± Z × σ
√n
= 100 ± 1.6449×15
√20
= 100 ± 5.517
= (100 – 5.517 and 100 + 5.517)
= (94.48, 105.51)

A survey of families having kids at school showed that 372 of 1,200 sampled families
(B)
attended a parents meeting during the year. Using the 90% level of confidence, what is the
confidence interval for the proportion of families attended a parents meeting?

The sample proportion is computed as follows, based on the sample size

N=1200 and the number of favorable cases X=372.
X 372 X 372
p= = =0.31 p= = =0.31
N 1200 N 1200
The critical value for a = 0.1 is zc = z1 – a/2 = 1.645.
ci ¿

0.31 ( 1−0.31 ) 0.31 ( 1−0.31 )

(
¿ 0.31−1.645 ×
√ 1200
, 0.31+ 1.645×
√ 1200 )
¿ ( 0.288 , 0.332 )
Therefore, based on the data provided, the 90% confidence interval for the
Population proportion is 0.288 < p < 0.332, which indicates that we are 90%
Confident that the true population proportion p is contained by the interval

BUS102/ THE-Final – Ver A 7 of 12 Fall/2020-2021

 (0.288, 0.332).

Question 6:(10 points)

A random sample of 85 group leaders and supervisors revealed that they worked an average of
6.5 years before being promoted. The population standard deviation was 1.7 years. What is the
95% confidence interval for the population mean? 
Answer 6

n = 85
σ = 1.7 time spent on the job
x̅ = 6.5
95% Confidence interval
95% level of confidence, the value of z is obtained by locating
0.95/2 = 0.4750.
The value of z = 1.96.
x̅ + z σ = 6.5± 1.96 x 1.7
√n √85
= 6.5± 1.96 x 1.7
9.22
= 6.5 ± 0.361
X1= 6.5 -0.361 = 6.139
X2= 6.5+0.361 = 6.861
95 percent confidence interval for time spent on the job is (6.139, 6.861) hours.

End of Questions
BUS102/ THE-Final – Ver A 8 of 12 Fall/2020-2021
KEY FORMULAS

BUS102/ THE-Final – Ver A 9 of 12 Fall/2020-2021

Areas under the standard normal curve

BUS102/ THE-Final – Ver A 10 of 12 Fall/2020-2021

Student’s t distribution

BUS102/ THE-Final – Ver A 11 of 12 Fall/2020-2021

BUS102/ THE-Final – Ver A 12 of 12 Fall/2020-2021