ADM 2623

Lecture 2 Extra Problems

1. Fortune magazine recently provided a listing of the incomes of chief executive officers of some of the largest U.S.
corporations. The annual salaries, in thousands of dollars, were:

(†)
1380 1378 889 1030 1050 1180
(††)
997 1201 920 783 709 883 (†)
Maximum salary in data set
842 900 1000 950 970 990 (††)
Minimum salary in data set
1271 753 1350 1290 815 1250
712 850 797 1153 1080 1300

(a) Organize the data about CEO salaries given above into a frequency distribution
i. How many classes would you recommend and why?

ii. What class interval would you suggest and why?

iii. What would you recommend as the lower limit of the first class and why?

iv. In the cells provided below, and using the answers you provided above, construct the frequency distribution
for the data about the CEO salaries. Use the first row to label your columns, and use only the rows and
columns that you need.
this is a blank space this is a blank space this is a blank space this is a blank space

(b) For the frequency distribution you just developed above, compute the cumulative frequencies for each class.
(c) Using the cumulative frequencies you just computed above (and not the raw data), find the approximate number of
data values that are less $1100 thousand of dollars. Compare your approximation with the actual number of data
values that are less than $1100 thousand dollars (that is using the raw data).

1
2. A group of BBA students collected data on average monthly consumption of electricity in 200 industrial plants. With
this data, they constructed a frequency distribution and computed the corresponding relative frequencies and cumulative
frequencies. These are partially given below:

Electricity Frequency Relative Cumulative

Consumption Frequency Frequency
(in MWH)
100 up to 115 ? ? 15
? ? 0.1 ?
? ? ? 75
145 up to 160 35 ? ?
160 up to 175 ? 0.15 ?
190 up to 205 ? ? 195
205 up to 220 ? ? ?
(a) Complete the frequency distribution table above, and compute all the missing relative and cumulative frequencies.
(b) Approximately how many of the 200 industrial plants consume on the average less than 170 MWH of electricity
per month?

3. Consider the following data on fire loses in Canada in 1989, 1990, and 1991:

Dollar loses (in millions $)

1989 1990 1991
Residential 454 500 420
Farm Properties 64 80 90
Manufacturing Properties 127 105 110
Mercantile Properties 136 140 130
Other Properties 338 300 360

(a) Construct an appropriate bar chart to represent the entire data

(b) Draw a pie chart to illustrate the data for the year 1990.