Homework 1

POM 500 Statistical Analysis

Note: Attempt ALL questions. Problems are 10 marks each. Maximum you can score is
100. Homework is due on the day of Test-1.

Problem-1
Using ‘VehicleFailureData’ available on the course website, answer the following:
a) Classify each variable as nominal, ordinal, interval or ratio.
b) Identify qualitative and quantitative variables.
c) How many vehicles failed in month-9?
d) What was the maximum labor cost?
e) What was the total failure cost for the data available?

Problem-2
A seven-year medical research study reported that women whose mothers took the drug
DES during pregnancy were twice as likely to develop tissue abnormalities that might lead
to cancer as were women whose mothers did not take the drug.
a) This study involved the comparison of two populations. What were the populations?
b) Do you suppose the data were obtained in a survey or an experiment?
c) For the population of women whose mothers took the drug DES during pregnancy, a
sample of 3980 women showed 63 developed tissue abnormalities that might lead to
cancer. Provide a descriptive statistic that could be used to estimate the number of
women out of 1000 in this population who have tissue abnormalities.
d) For the population of women whose mothers did not take the drug DES during
pregnancy, what is the estimate of the number of women out of 1000 who would be
expected to have tissue abnormalities?
e) Medical studies often use a relatively large sample (in this case, 3980). Why?

Problem-3
ACNielsen conducts weekly surveys of television viewing throughout the United States.
The ACNielsen statistical rating indicates the size of the viewing audience for each major
network television program. Rankings of the television program and of the viewing
audience market share for each network are published each week.
a) What is AC Nielsen attempting to measure?
b) What is the population?
c) Why would a sample be used in this situation?
d) What kinds of decisions or actions are based on the ACNielsen studies?
Problem-4
Using ‘VehicleFailureData’, summarize ‘Mileage at Failure’ by obtaining:
• Mean
• Median
• Mode
• Range
• Standard deviation

Problem-5
Public transportation and the automobile are two methods an employee can use to get to
work each day. Samples of times recorded in minutes for each method are shown.

Public Transportation: 28 29 32 37 33 25 29 32 41 34

Automobile: 29 31 33 32 34 30 31 32 35 33

(a) Compute the sample mean time to get to work for each method.
(b) Compute the Standard deviation for each method.
(c) On the basis of your results from parts (a) & (b), which method of transportation
should be preferred? Explain.

Problem-6
The following table provides a probability distribution for the random variable x.

x f(x)
2 0.20
4 0.30
7 0.40
8 0.10

(a) Compute Expected value E(x).

(b) Compute Variance (σ2) and Standard Deviation (σ).
Problem-7
Twenty-three percent of automobiles are not covered by insurance (CNN, February 23,
2006). On a particular weekend, 35 automobiles are involved in traffic accidents.
a) What is the probability of 5 automobiles involved in traffic accidents but not covered
by insurance?
b) What is the probability of at least 10 automobiles involved in traffic accidents but not
covered by insurance?
c) What is the probability of at most 11 automobiles involved in traffic accidents but not
covered by insurance?
d) What is the expected number of these automobiles that are not covered by insurance?
e) What are the variance and standard deviation?

Problem-8
Game Description: Bob gives the contestant a free chip just for playing the game. The
contestant climbs to the top of the Plinko board (see picture below) and drops the chips
one at a time. The pegs send the chip bouncing all over the board until they land in slots
representing money amounts at the bottom. The slots are, from left to right; $100, $500,
$1000, $0, $10000, $0, $1000, $500, $100.

(a) For each of the three middle slots at the top of the board (slots 4, 5, and 6), find the
probability that a chip starting in each slot results in winning $10,000.
(b) Compute the expected winnings for a chip dropped in slot 5 and the expected winnings
for a chip dropped in slot 4 or 6.

Problem-9
During the period of time that a local university takes phone in registrations, calls come
in at the rate of one every two minutes.
a) What is the expected number of calls in one hour?
b) What is the probability of three calls in ten minutes?
c) What is the probability of more than 3 calls in ten minutes?

Problem-10
Axline Computers manufactures personal computers at two plants, one in Texas and the
other in Hawaii. The Texas plant has 40 employees; the Hawaii plant has 20. A random
sample of 10 employees is to be asked to fill out a benefits questionnaire.
a) What is the probability that none of the employees in the sample work at the plant in
Hawaii (to 4 decimals)?
b) What is the probability that two or fewer of the employees in the sample works at the
plant in Hawaii (to 3 decimals)?
c) What is the probability that 3 or more of the employees in the sample work at the plant
in Hawaii (to 3 decimals)?
d) What is the probability that 9 of the employees in the sample work at the plant in Texas
(to 3 decimals)?