Department of Economics

Islamia College Peshawar

Paper: Statistics II Exam: Final Term

Program: BS Semester: 4
Section: (A+B) Maximum Marks: 60
Time Allowed: 03 Hours

Attempt any six questions. All Questions carry equal marks

1. Given the properties of event probability:

P1 0 ≤ Pr(A) ≤1;
P2 Pr(S) = 1;
P3 Pr(A∪B) = Pr(A) + Pr(B) if A∩B=∅;
𝑛 𝑛
P4 Pr(𝑈𝑖=1 𝐴𝑖 ) = ∑𝑖=1(𝐴𝑖 )
if the collection of events {Ai, i = 1, . . , n} is pairwise mutually exclusive even if n → ∞.
From properties P1 to P4, it is possible to derive some important results concerning the
different ways we may combine events.
Result It follows from P1 to P4 that

(a) Pr(∅) = 0,

(b) Pr(𝐴𝑐 ) = 1 − Pr(A),
(c) Pr(A∪B) = Pr(A) + Pr(B) − Pr(A∩B), and
(d) Pr(A) ≤ Pr(B) if A⊆B.

2. Suppose that you roll a die and take note of the resulting value. The universe is the set
with all possible values, namely:
U = {1, 2, 3, 4, 5, 6} Consider the following two sets:
A = {1,2,3,4} and B = {2,4,6}
Prove that the union and intersection operators are “symmetric” and “transitive”.

3. Suppose that a computer lab has 4 new and 2 old desktops running Windows as well as 3
new and 1 old desktops running Linux. What is the probability of a student to randomly sit
in front of a desktop running Windows? What is the likelihood that this particular desktop
is new given that it runs Windows? Well, there are 10 computers in the lab of which 6 run
Windows.
4. Let a random variable satisfy the following probability density function
𝐹𝑥 (𝑋) = 2𝑥
if 0 ≤ x ≤ 1

Then compute the probability of observing a given interval

1 2
Pr (X ≤ 12) / 3 ≤ 𝑋 ≤ 3)
5. A certain population is divided into five strata so that
N1 = 2000, N2 = 2000, N3 = 1800, N4 = 1700, and N5 = 2500.
Respective standard deviations are:
σ1 = 1.6, σ2 = 2.0, σ3 = 4.4, σ4 = 4.8, σ5 = 6
and further, the expected sampling cost in the first two strata is Rs. 4 per interview
and in the remaining three strata the sampling cost is Rs. 6 per interview. How should
a sample of size n = 226 be allocated to five strata if we adopt proportionate sampling
design; and if we adopt disproportionate sampling design considering, given
(i) Only the differences in stratum variability
(ii) Differences in stratum variability as well as the differences in stratum sampling
costs.

6. The following are the number of departmental stores in10 cities:

35, 27, 24, 32, 42, 30, 34, 40, 29 and 38
If we want to select a sample of 15 stores using cities as clusters and selecting within
clusters proportional to size, how many stores from each city should be chosen? (Use
a starting point of 4).

7. A systematic bias results from errors in the sampling procedures”. What do you mean by
such a systematic bias? Describe the important causes responsible for such a bias.
(a) A probability sample?
(b) A non-probability sample?
(c) A stratified sample?
(d) A cluster sample?

8. A) State and explain what is wrong in the following statement scenarios.

i) A sampling distribution describes the distribution of some characteristic in a

population.
ii) A statistic will have a large amount of bias whenever it has high variability.
iii) The variability of a statistic based on a small sample from a population will be
the same as the variability of a large sample from the same population.
iv) The population consists of all individuals selected in a simple random sample.

B) Besides other sampling techniques, the idea of a sampling distribution can be

effectively illustrated with a Simple Random Sample (SRS). If we want to chose a
sample of 10 from population labeled 1 to 100 (using SRS), the mean of the whole
numbers 1 to 100) is 50.5. This is the parameter - the mean of the population.

i) Explain, why and in what scenarios a statistic (the sample mean x) would be different
from population mean
ii) If we draw 10 samples, would the mean of these sample would roughly centered at
the population mean? Explain in case of with and without replacement sampling
 iii) Explain, if we kept going forever (chosing/selecting samples with replacement) , the
sample mean values would form the sampling distribution of the sample mean and
the population mean would indeed be the center of that distribution ?

9. Explain the following:

A) A management student is planning to take a survey of student attitudes toward

part-time work while attending college. He develops a questionnaire and plans to ask 25
randomly selected students to fill it out. His faculty adviser approves the questionnaire
but urges that the sample size be increased to at least 100 students. Why is the larger
sample helpful?

B) The given below figure shows histograms of four sampling distributions of

statistics intended to estimate the same parameter. Label each distribution relative to the
others as high or low bias and as high or low variability.

10. Assign probability in the following scenarios:

a) The given above figure displays the 36 possible outcomes of rolling two dice. What
probabilities shall we assign to each of these outcomes given that Casino dice are
carefully made and their spots are not hollowed out, which would give the faces
different weights. (hint: all 36 outcomes together must have probability 1 (as stated
in P2 of ‘event probability rules’ given in question 1 of this paper)
 b) What is the probability of rolling a 5? Because the event “roll a 5” contains the
four outcomes displayed below as hint.
(Hint: use the addition rule of probability as below)

c) What about the probability of rolling a 7? (hint: In the given Figure you will find a
number of outcomes for which the sum of the spots is 7. Calculate their probability)

11. Calculate simple, union and joint probabilities in the following three scenarios:

a) What is the simple probability of rolling a 2 on a fair dice? When the all Possible
outcomes are n=6; [1,2,3,4,5,6]

b) Two events are said to be mutually exclusive if the events have no sample points
in common – if one event occurs, the other cannot occur . The probability that one
of several mutually exclusive events occurs, is simply the sum of the individual
probabilities P(AUB) = P(A) + P(B). Calculate union probability P(A∪B) for
i) p(A): Rolling a die and getting a 4
ii) p(B): Rolling a die and getting a 5

c) Two events are said to be independent if the outcomes have no effect on each
other. The probability that two independent events occur is simply the
multiplication of the individual probabilities P(AB) = P(A) x P(B). calculate the
joint probability for

i) p(A): Rolling a die and getting a 5

ii) p(B): Rolling a die and getting a 3

12. Find the mean, the median, and the mode for the number of vehicles owned in a
survey of 52 households and also briefly explain whether the mean of a data set is
always greater than the median.

x 0 1 2 3 4 5 6 7
f 2 12 15 11 6 3 1 2