THE INTERNATIONAL UNIVERSITY (IU) Course: Statistics for Business

Department of Industrial System Engineering

MIDTERM EXAMINATION

STATISTICS FOR BUSINESS Duration:

120 minutes
Head of Department of Lecturer: Student ID: Date:
Industrial & Systems 7 Nov, 2018
Engineering

Name:

Dr. Nguyen Van Hop

INSTRUCTIONS:
1. This is an open book examination. No laptops, PDA.
2. Use of calculator is allowed; discussion and material transfer are strictly prohibited.

Total pages: 2 (including this page)

PART I (100 %)

Q1. A Calculate the median value of the following eight numbers: 14, 34, 50, 10, 24, 11, 32, 20.
a) 22
b) 20
c) 24
d) 24.4
Q2. A specific characteristic of a population is known as a
a) sample.
b) parameter.
c) statistic.
d) descriptive statistic.
Q3. Which of the following would fit the definition of statistical independence of events A and B?
a) P(A B) = P(A) + A(B)
b) P(A B) = P(A B)/P(A)
c) P(A B) = P(A)
d) P(A and B) = P(A)
Q4. Given X follows uniform distributions on interval [-3 3]. Find the probability that X ∈[−1; 1]
a) 1/3
b) 1/4

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 THE INTERNATIONAL UNIVERSITY (IU) Course: Statistics for Business
Department of Industrial System Engineering

c) 2/3
d) None of the above
Answer: 1/3
Q5. The number of fruits on a tree follows Poisson distribution with mean=5. Find the probability that the
number of fruits on this trees smaller or equal to 1
a) 0.0404
b) 0.1055
c) 0.0067
d) None of the above
Answer: 0.0404

PART II: SHORT QUESTIONS (100 %)

Using the data below for 2 following questions:

The monthly revenues of a company in 2016 and 2017 is given in the table below (in million dollars)
115 116 116 101 112 119 110 115 118 114 115 110
109 107 106 108 108 108 108 106 117 120 113 109
Question 1:
Calculate the average revenue of this company during this period, the variance and the standard deviation.

Question 2:
Find the 47th , 86th percentile, lower and upper quartile for this sample

Question 3:
Given the possible values and the corresponding probabilities of a discrete variable X
X P(X)
0 0.2
1 0.3
2 0.2
3 0.2
4 0.1
Find the expectation and the variance of the function y=(x-1)2
Answer:
X P(X) Y P(x)*y P(X)*(Y-2.1)^2
0 0.2 1 0.2 0.242
1 0.3 0 0 1.323
2 0.2 1 0.2 0.242
3 0.2 4 0.8 0.722
4 0.1 9 0.9 4.761
2.1 7.29

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 THE INTERNATIONAL UNIVERSITY (IU) Course: Statistics for Business
Department of Industrial System Engineering

E(Y)=2.1
Var(Y)=7.29
Question 4:
Two players A, and B play a series of games in a competition; the first player to win 2 games is declared
the overall winner. The probability that A win B in any game is 0.7.
 Find the probability that the competition end after 2 games.
 Find the probability that the competition end after 3 games.
Answer
End after 2 games:
P=P(A win 1st 2 games)+ P(B win 1st 2 games)=0.72+0.32 =0.58
End after 3 games:
P=P(A win 1 game in 1st 2 games & win final game )+ P(B win 1 game in the 1st 2 games & win final
game)=2 ×0.7 × 0.3× 0.7 +2 ×0.7 × 0.3× 0.3 = 0.42
Question 5:
Assumed that the height of people in a country follows normal distribution N(170, 15). The furniture
company want to design a bed, so as its length can cover the height at least 98% population. Find the
minimum value of the length of the bed.

Answer
Minimum value of length of the bed
P(Z ≤ A)= 0.98 => A= 2.053
Using z transform the length must be= 170+2.053 × √ 15=177.95

PART III: LONG QUESTIONS (100 %)

Question 1:
A company intends to invest to a project which mainly consists of 2 costs, namely material cost and labor
cost. Given that the material cost follows normal distribution as NM(1000,3002) and the labor cost follows
normal distribution as NL(2000,4002)
a) Find the probability that total costs of material and labor ≥ 3400
b) If the company has to pay only half of the total cost, find the probability that their payment is
smaller than 2000
c) If the budget for the payment of the company is also a normal random variable given by
NB(3200,4002). Find the probability that the company cannot pay the total cost
Answer
a)
Let Y=M+L
Y follow normal distribution: NY(3000,3002 +4002)= NY(3000,5002)

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 THE INTERNATIONAL UNIVERSITY (IU) Course: Statistics for Business
Department of Industrial System Engineering

P(Y≥3400)=P(Z≥(3400-3000)/500)= P(Z≥0.8)=0.2119
b)
If the company has to pay only half of the total cost, find the probability that their payment is smaller than
2000
Let U=0.5(M+L)
U follow normal distribution: Nu(1500,(3002 +4002)/4)= Nu(1500,2502)
P(U≤2000)=P(U≤(2000-1500)/250)= P(U≤2)=0.9772
If the budget for the payment of the company is also a normal random variable given by NB(3200,4002).
Find the probability that the company cannot pay the total cost
c)
V=B-M-L
V follow normal distribution: NV(200,(3002 +4002+4002))= NV(200,410 000)
P(V≤0)=P(V≤(0-200)/640.31)= P(V≤-0.312)=0.3783
Question 2:
A box contains 5 red and 5 blue marbles. Two marbles are withdrawn randomly in the 1st round. If they
are the same color, then you win $2; if they are different colors, then you win −$1.00. (That is, you lose
$1.00.) Calculate

a) The probability that you win in the 1st round

( C52 +C 52 )
20
P ( win ) = =
C 45 10
2
b) The expected value of the amount you win in the 1st round.

( C51 C51 ) 25
P ( Lose )= =
C 10
2
45

Expected value

20 25 15
2× + (−1 ) × =
45 45 45

Now if the 2 marbles withdrawn in the 1st round are eliminated from the box. And the box is not refilled,
i.e. now the box only has 8 marbles.

c) Find the probability that you win in the 2nd round when the same rule as the 1st round is applied to
the 2nd round.

The probability that you win

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 THE INTERNATIONAL UNIVERSITY (IU) Course: Statistics for Business
Department of Industrial System Engineering

P(win)= P(win| 2R at 1st round)P(2R at 1st round)+ P(win| 2B at 1st round)P(2B at 1st round)+ P(win| 1R1B
at 1st round)P(1R1B at 1st round)

C52 (C 32+C 52 ) C52 (C 52 +C32 ) C51 C51 ( C 42 +C24 ) 4

P ( win ) = × + × + × =
C 10
2 C 8
2 C 10
2 C 8
2 C 10
2 C 8
2
9

Question 3:
In a shopping mall, when a man comes in, the probability that he visits a technical store is 0.55 while the
chance he visits a beauty store is 0.15 and there is 0.3 probability that he visits a sport clothes store.
Whereas, when a woman comes in, those chances for a visit at a technical store is 0.1, at a beauty store is
0.7 and at a sport clothes is 0.2. Statistically, the manager of the mall announces that the men rate visiting
the mall is 0.45 while the women rate is 0.55
a) What is the probability that a person come in the mall to visit a beauty store?
b) Given that a random person is visiting a sport clothes store. What is the probability that is a man?

Question 4:
In International University, there are two level of English. In case, 500 students were investigated. There
were 170 students who passed the Advanced English test.
a) 16 students are randomly selected. What is the probability that there are 10 of them who are in
Intermediate English classes? What is the probability that no more than 6 students are in Advanced
English classes?
b) A student is doing a survey to investigate the rate of Intermediate English and Advanced English
students in IU. He randomly chooses a class studying Calculus 1 with the size of 36 students. He
picks out randomly 10 students. What is the probability that 5 of them are in Advanced English
classes? What is the probability that at least 8 of them are in Intermediate English classes?

GOOD LUCKS!

Statistics for Business- Midterm Exam 7,Nov, 2018 5