DISC 203 - Fall2020 - Quiz1 Due by 9 am on Thursday Oct 1,2020 Total: 10 points

Name: Haider Ali Awan Roll #: 23110168

Q1. Recent testing of a popular brand of automobile battery has shown that the distribution
of battery life-lengths is approximately mound-shaped, with mean 36 months and standard
deviation 6 months. If the batteries are guaranteed to last 2 years, approximately what
percentage of all batteries sold will have to be replaced because they fail before expiration
of guarantee period? [3]

Approximately 2.5% (by empirical rule, as the distribution is mound-shaped) of the

batteries will have to be replaced because they fail before expiration

Q2. In this question, we use data for the 30 fastest growing companies as listed in the
Fortune magazine. Below is an output of descriptive statistics and a box-and-whiskers
display for the EPS (earnings per share) growth percentages for these companies.
Observations Mean Standard Deviation Minimum Maximum
EPS Growth 30 114 56 47 256
Percentage

50 100 150 200 250

Earnings per share growth percentage

(a) Comment on the shape of the distribution (symmetric, skewed to the right, skewed to the
left) of EPS growth percentages. [1]

Since the mean is greater than median as show on the plot above, the distribution is
skewed to the right.

(b) How far from the mean is the bigger of the two outliers? [2]

The biggest outlier (256) is 256-114 = 142 points far from the mean.
Q3. Comment on the shape of the distributions you would expect to obtain under the
following scenarios: [2]

(a) Scores on a difficult quiz

rightwards skewed, as it is expected that the difficulty of the quiz will result in more students
scoring well below the mean, also, the mean is likely to be greater than the median, as there
will be some over-achievers who will pull the mean towards the right.

(b) Annual earnings of households in Pakistan

rightwards skewed, as majority of households in Pakistan have very low earnings, while few
elite do exist who make thousands of times more money than the majority of poor, this
results in a higher mean than the median and causes the distribution to be rightwards.

Q4. Compute standard deviation of the following returns: -3%, -2%, 0%, 1%, 5%. [2]

Mean = 0.2%
Variance = 7.76% n=5 (population)
Standard dev =2.78567% (we won’t use N=5)

Standard dev= 3.11448% n=4 (sample)- Final ans