NORTH SOUTH UNIVERSITY

Center of Excellence in higher Education

The first private university in Bangladesh
School of Business
Department of Management
Course BUS172: Introduction to Statistics, Semester: Summer 2017
Section: 17 Assignment: 02

Problem 1: Write down the formula for the binomial probability distribution with necessary explanation and its
mean and variance with their inter-relationship.

Problem 2: A manager of a computer store knows that 5% of PC sold out returned to his store for repair
within one year. Fifteen of these PCs, whose characteristic can be assumed to be independent of each other,
are sold out.
(a) What is the probability that none of these PCs has returned for repair?
(b) What is the probability that at least one of these PCs have returned for repair?
(c) Find the mean number of PCs returned for repair and also find its variance.

Problem 3: A production manager knows that 5% of components produced by the manufacturing process have
some defect. Ten of these components whose characteristic can be assumed to be independent of each other,
are examined.
(a) What is the probability that none of these components has a defect?
(b) What is the probability that one of these components has a defect?
(c) What is the probability that at least two of these components have a defect?
(d) Find the mean number of defective items and also find its variance.

Problem 4: Write down the formula for the Poisson probability distribution with necessary explanation and its
mean and variance with their inter-relationship.

Problem 5: Data from national statistics indicate that there are 15 accidents in Aricha road in the last 2 years.
(a) What is the probability that there is no accident in a given month?
(b) What is the probability that at best 2 accidents in a given month?
(c) What is probability that 3 or more accidents in a given month?

Problem 6: Andrew Whittaker, computer center manager, reports that his computer system experienced three
component failures during the past 90 days.
(a) What is the probability of no failures in a given day?
(b) What is the probability of one or more component failures in a given day?

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Problem 7: Write down the formula for the standard normal variable explaining the necessary terms.

Problem 8: According to a Sallie Mae and credit bureau data, in 2008, college students carried an average of
$3000 debt on their credit cards (USA TODAY, April 13, 2009). Suppose that current credit card debts for all
college students have a normal distribution with a mean of $3000 and a standard deviation of $700.
(a) Find the probability that credit card debt for a randomly selected college student is between $2000 and
$3400.
(b) Show the required area graphically indicating both x and z scaling.

Problem 9: Write at least three reasons for the occurrence of non-sampling errors. Also write the mean and
standard deviation of the sample mean of x and sample proportion p̂ .

Problem 10: The mean rent paid by all tenants in a small city is $1550 with a standard deviation of $225.
However, the population distribution of rents for all tenants in this city is skewed to the right. Calculate the
mean and standard deviation of x and describe the shape of its sampling distribution when the sample size
is
(a) 50 and
(b) 150.

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