Course: BUS172 (Introduction to Statistics), Semester: Spring 2021

ASSIGNMENT # 2
Answer ALL the questions.
Instructions:
Only hand-written answers are accepted.
You must write your name and ID in the answer script.
Answers must be written consecutively.
Take photo of your answers, convert them to pdf in a single file.
Send the single pdf using the Google classroom facility by 10 PM, 03 April 2021.
N.B.: You must write mathematical expressions and sketch curves where they
occur.

1. A consumer agency randomly selected some flights for two major airlines, A and 10
B. The following table gives the two-way classification of these flights based on
airline and arrival time. Note that “less than 30 minutes late” includes flights that
arrived early or on time.

Less Than 30 30 Minutes to More Than

Minutes Late 1 Hour Late 1 Hour Late
Airline A 285 142 75
Airline B 320 187 60

a. If one flight is selected at random from those flights, find the probability that
this flight is
i. more than 1 hour late
ii. a flight on airline B given that it is less than 30 minutes late
iii. 30 minutes to 1 hour late given that it is a flight on airline A
b. Are the events “airline A” and “more than 1 hour late” mutually exclusive?
What about the events “less than 30 minutes late” and “more than 1 hour late?”
Why or why not? Explain.
c. Are the events “airline B” and “30 minutes to 1 hour late” independent? Why
or why not? Explain.
d. Also find the following probabilities if one flight is randomly selected from
those flights.
i. P(more than 1 hour late or airline A)
ii. P(airline B or less than 30 minutes late)
iii. P(airline A or airline B)
2. Twenty percent of all cars manufactured at a large auto company are lemons. 8
Suppose three cars are selected at random from the production line of this company.
Let X denote the number of lemons in this sample.
a. Draw a tree diagram for this problem, and hence write the probability
distribution of X.
b. Find the mean and standard deviation of X using the probability distribution
of X.
c. Find the probability that
i. at least one of the randomly selected cars is lemon.
ii. at best two of the randomly selected cars are lemon.

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3. Johnson Electronics makes calculators. Consumer satisfaction is one of the top 7
priorities of the company’s management. The company guarantees the refund of
money or a replacement for any calculator that malfunctions within two years from
the date of purchase. It is known from past data that despite all efforts, 12% of the
calculators manufactured by this company malfunction within a 2-year period. The
company recently mailed 550 such calculators to its customers.
a. Find the probability that exactly 32 of the 550 calculators will be returned for
refund or replacement within a 2-year period.
b. What is the probability that 30 or more of the 550 calculators will be returned for
refund or replacement within a 2-year period?
a. What is the probability that 15 to 35 of the 550 calculators will be returned for
refund or replacement within a 2-year period?

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