ES 2020-21

Elementary Statistics - Exercise Solution

Chapter 1 Introduction to Survey and Statistics

1.
(a) The research objective is to study the renovation expenses for an apartment in the west Kowloon
district.
(b) All 900 flats sold during the last 12 months in the west Kowloon district.
(c) 900
(d) 10
(e) Select 10 distinct identity number between 001 and 900. Results are:
469, 482, 157, 816, 548, 920, 548, 104, 854, 891, 358, 112
900
(f) As k = = 90, 1 identity number has to be selected from every 90 identity numbers. Select
10

the first identity randomly from the first 90 elements, which is 46 according to the random
number table. So the results of the selection are:
46, 136, 226, 316, 406, 496, 586, 676, 766, 856

2.
(a) The research objective is to understand the views and personal experience of customers of a
joint hotel group when using the on-line booking system.
(b) The 2500 registered customers.
(c) 500 + 1200 + 800 = 2500
(d) 500
(e) stratified sampling
(f) sample size for registered customers in proportion to the population size
500
hotel A: (500) = 100
2500
1200
hotel B: (500) = 240
2500
800
hotel C: (500) = 160
2500

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3.
(a) k = 600 / 20 = 30
 the next four identity numbers are 058, 088, 118, 148
(b) select 3 digits number, discard number out of range or duplicated:
618 704 165 707 968 086 129 808 397 349
The first 5 valid identity numbers are 165, 086, 129, 397, 349

4.
20
(ai) Accounting department: 50× 200 = 5

60
Marketing department: 50× = 15
200

120
Sales department: 50× 200 = 30

(aii) stratified sampling

(b) select 4 digits number, discard number out of range or duplicated:
3569 4502 0785 9606 2318 2579 6510 1847 8288 1497
The first four employees to be selected are 0785, 2318, 1847, 1497

5.
(a) The research objective is to understand the safety facilities in the supermarket.
(b) All 1500 supermarkets
(c) 1500
(d) 60
(e) The sample size for each district is calculated as follow:
550
Central: 60 × 1500 = 22

250
South: 60 × 1500 = 10

200
North: 60 × 1500 = 8

350
East: 60 × = 14
1500

150
West: 60 × 1500 = 6

(f) It is fast to generate the sample

(g) k = 1500 / 60 = 25
the next three identity numbers are: 0062, 0087, 0112

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6.
(a) The sample size is 1040(5%) = 52
1040
(b) as k = = 20, the first selected one should be a member with identity number 01 – 20.
52

From the random number, 16 is selected. The first 10 selected members should be:
16, 36, 56, 76, 96, 116, 136, 156, 176, 196

7.
(a) In order to keep each department with the same ratio of representative, the number of employees
in each department should be:
4
Finance: 30× =6
20

4
Marketing: 50× 20 = 10

4
Data Processing: 80× 20 = 16

(b) select 2 digits number, discard number out of range or duplicated

61 87 04 16 57 07 96 80 86 12
The valid identity numbers are: 04, 16, 07, 12

8.
(a) Ratio between number of employee and number of representative = 250:50 = 5:1
(i) 12(5) = 60
(ii) 20(5) = 100
(iii) 180/5 = 36
(b) k = 250 / 50 = 5,
so the identity number of the next 4 representatives are: 009, 014, 019, 024

9.
(a) It is difficult to obtain the sampling frame, which is a list of all secondary 5 students in Hong
Kong.
(b) 10th percentile = $87 (n = 24, i = 24(0.1) = 2.4 ↑ 3)
225+229
median = = $227 (n = 24, i = 24(0.5) = 12)
2

90th percentile = $360 (n = 24, i = 24(0.9) = 21.6 ↑ 22)

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10.
5+6+9+⋯23+27
(a) Sample mean = = 15.4 hours
10

13+18
Sample median = = 15.5 hours (𝑛 = 10, 𝑖 = 10 × 0.5 = 5)
2

(b) Q1 = 9 hours (𝑛 = 10, 𝑖 = 10 × 0.25 = 2.5 ↑ 3)

Q3 = 22 hours (𝑛 = 10, 𝑖 = 10 × 0.75 = 7.5 ↑ 8)

11.
13+15+⋯+50
(a) sample mean = = 29.6 minutes,
15

sample median = 28 minutes (𝑛 = 15, 𝑖 = 15 × 0.5 = 7.5 ↑ 8 )

(b) 10th percentile = 15 minutes (𝑛 = 15, 𝑖 = 15 × 0.1 = 1.5 ↑ 2)
18+19
20th percentile = = 18.5 minutes (𝑛 = 15, 𝑖 = 15 × 0.2 = 3 )
2

41+42
80th percentile = = 41.5 minutes (𝑛 = 15, 𝑖 = 15 × 0.8 = 12 )
2

90th percentile = 49 minutes (𝑛 = 15, 𝑖 = 15 × 0.9 = 13.5 ↑ 14)

12.
1+1+⋯+9
(a) sample mean = = 3.6 members
25

Sample median = 3 members (𝑛 = 25, 𝑖 = 25 × 0.5 = 12.5 ↑ 13)

Sample mode = 3 and 4 members
(b) Q1 = 3 members (𝑛 = 25, 𝑖 = 25 × 0.25 = 6.25 ↑ 7)
Q3 = 4 members (𝑛 = 25, 𝑖 = 25 × 0.75 = 18.75 ↑ 19)
(c) 75th percentile = Q3 = 4 members (𝑛 = 25, 𝑖 = 25 × 0.75 = 18.75 ↑ 19)
85th percentile = 5 members (𝑛 = 25, 𝑖 = 25 × 0.85 = 21.25 ↑ 22)
95th percentile = 8 members (𝑛 = 25, 𝑖 = 25 × 0.95 = 23.75 ↑ 24)

27×82+29×79+30×75.5+38×65.5
13. Overall average = = 74.67 marks
27+29+30+38

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14.
(a) Average number of complaints received per day:
42
January: = 1.35 complaints
31

38
February: = 1.36 complaints
28

19
March: = 0.61 complaints
31

(b) Overall average number of complaints received per day in the first three months:
42+38+19
= 1.1 complaints
31+28+31

15. Let x denotes the number of items the last senior salespersons make
80×2+75×2+𝑥
Mean = = 82, 𝑥 = 100 items
5

16.
238+254+⋯+408
(a) Sample mean = = 355, k = 432 packages
12

(b) The ordered array of the dataset:

207 238 254 290 300 313
333 408 412 432 512 561
313+333
Median = = 323 packages (𝑛 = 12, 𝑖 = 12 × 0.5 = 6)
2

17.
15.1+𝑘+⋯+13.5
(a) Sample mean = = 14.9, k = 15.2 seconds
13

(b) The ordered array of the dataset:

13.5 13.9 14.1 14.2 14.6 14.7 14.9
15.1 15.2 15.4 15.6 16.2 16.3

Median = 14.9 seconds (𝑛 = 13, 𝑖 = 13 × 0.5 = 6.5 ↑ 7)

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18.
5 + 9 + 12 + 13 + 14 + 16 + 18 + 22 + 23 + 29
(a) Sample mean = = 16.1 days
10
14 + 16
Sample median = = 15 days (𝑛 = 10, 𝑖 = 10 × 0.5 = 5)
2
(5 − 16.1) 2 + (9 − 16.1) 2 + ... + (29 − 16.1) 2
(b) Sample standard deviation = = 7.125 days
10 − 1
Range = 29 – 5 = 24 days,
Q1= 12 days (𝑛 = 10, 𝑖 = 10 × 0.25 = 2.5 ↑ 3)
Q3= 22 days (𝑛 = 10, 𝑖 = 10 × 0.75 = 7.5 ↑ 8)
IQR = 22 – 12 = 10 days

19. Rearrange the number we have:

194.17 199.28 201.43 211.49 226.21 237.66
240.16 249.45 259.83 261.10 276.72

(a) Range = 276.72 - 194.17 = $82.55

(b) Q1 = $201.43 (𝑛 = 11, 𝑖 = 110.25 = 2.75 ↑ 3)
Q3 = $259.83 (𝑛 = 11, i = 11 × 0.75 = 8.25 ↑ 9)
IQR = 259.83 - 201.43 = $58.4
194.17+199.28+⋯+276.72
(c) Mean = = $232.5
11

Sample Variance

(194.17 − 232.5) 2 + (199.28 − 232.5) 2 + ... + (276.72 − 232.5) 2

= = 791.199 ($2)
11 − 1
(d) Sample standard deviation = $28.128

20.
(a) sample mean = $126.5 (from calculator)
sample standard deviation = $71.4862 (from calculator)
2 2
sample variance = (71.4862) = $ 5110.2778
(b) The ordered array: 58 63 65 77 85 121 133 181 236 246
the first quartile = $65 (n = 10, i = 10 × 0.25 = 2.5 ↑ 3)
third quartile = $181 (n = 10, i = 10 × 0.75 = 7.5 ↑ 8)

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21.
Q1 = 52 (𝑛 = 9, 𝑖 = 9 × 0.25 = 2.25 ↑ 3)
Q2 = 54 (𝑛 = 9, 𝑖 = 9 × 0.5 = 4.5 ↑ 5)
Q3 = 58 (𝑛 = 9, 𝑖 = 9 × 0.75 = 6.75 ↑ 7)
It is right-skewed as Q2 – Q1 = 2 < Q3 – Q2 = 4.

22.
52 + 49 + ... + 64
(a) x = = 59.5 seconds
8
(b) Sample size n = 8
The ordered array of the data: 28 49 49 52 64 67 75 92
52 + 64
Median = = 58 seconds (n = 8, i = 8  0.5 = 4)
2
49+49
(c) Q1 = = 49 seconds (n = 8, i = 8  0.25 = 2)
2

67+75
Q3 = = 71 seconds (n = 8, i = 8  0.75 = 6)
2

(d) Range = 92 – 28 = 64 seconds.

IQR = 71 – 49 = 22 seconds.

(28 − 59.5) 2 + (49 − 59.5) 2 + ... + (92 − 59.5) 2

(e) s = = 377.4286 (seconds2).
2

8 −1
s = 19.4275 seconds.

(f) It is a right-skewed distribution as Q2 – Q1 = 58 – 49 = 9 < Q3 – Q2 = 71 – 58 = 13.

(g) The downloading time for the game by using a smartphone is a variable. On the average it
takes about 1 minute to download the game. While the shortest downloading time is only 28
seconds, the longest downloading time is 92 seconds which has a range of 64 seconds. When
the average downloading time is 60 seconds, there is a standard deviation of 20 seconds. The
data is found to be slightly right-skewed.

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23. The ordered array of the dataset:

327 591 662 730 768 820
873 951 1214 2460 4260 5293
(a) sample mean = $1579.1 (from calculator)
sample median = $846.5 (𝑛 = 12, 𝑖 = 12 × 0.5 = 6)
662+730
Q1 = = $696 (𝑛 = 12, 𝑖 = 12 × 0.25 = 3)
2

1214+2460
Q3 = = $1837 (𝑛 = 12, 𝑖 = 12 × 0.75 = 9)
2

(b) range = 5293 - 327 = $4966

IQR = 1837 - 696 = $1141
Sample standard deviation = $1598.9 (from calculator)
(c) Skewed to the right, as Q2 – Q1 = 150.5 < Q3 – Q2 = 990.5
(d) A sample of 12 midland China tourists is investigated in order to study the daily expense ($)
midland China tourists made in Hong Kong on 1 July 2017. On the average a tourist spent
about $1600 in a day with a standard deviation of about $1600. A large deviation in the daily
expense is observed with the range of $4966, while the deviation is much smaller if we just
focus on the interquartile range of $1141. The data is found to be right-skewed. Supported
by the raw data, it is observed that the spread among the high spending group is much wider
than the spread among the low spending group.

24.
(a) As the population size is too large and it’s difficult to prepare the sampling frame, which is a list
of all primary six students in Hong Kong.
(b) Mean = 15.875 hours (from calculator)
Sample standard deviation = 9.0912 hours (from calculator)
7+8
(c) Q1 = = 7.5 hours (n = 16, i = 16 × 0.25 = 4)
2

14+15
Median = = 14.5 hours (n = 16, i = 16 × 0.5 = 8)
2

20+28
Q3 = = 24 hours (n = 16, i = 16× 0.75 = 12)
2

(d) 10th percentile = 6 hours (n = 16, i = 16× 0.1 = 1.6 ↑ 2)

th
90 percentile = 30 hours (n = 16, i = 16× 0.9 = 14.4 ↑ 15)
(e) It’s a right-skewed distribution, as Q2 – Q1 = 7 < Q3 – Q2 = 9.5

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(f) A sample of 16 primary six students is selected in Hong Kong in order to study the reading
habit of primary six students. On the average, student spends about 16 hours in reading in a
week with a standard deviation of 9 hours. Half of the students spend more than 14.5 hours in
reading in a week, 25% students spend more than 24 hours in reading in a week and the top
10% students spend more than 30 hours in reading in a week. The dataset is right-skewed
distributed. A wider spread is observed for the group of students who spend longer hours in
reading than the group of students who spend shorter hours in reading.

25.
(a) mean = 59.16 boxes (from calculator)
mode = 65 boxes
The ordered array of the dataset:
39, 41, 45, 52, 53, 55, 58, 59, 60, 61, 62, 62, 63, 65, 65, 65, 70, 72, 77
median = 61 boxes (n = 19, i = 19 × 0.5 = 9.5 ↑ 10)
Q1 = 53 boxes (n = 19, i = 19 × 0.25 = 4.75 ↑ 5)
Q3 = 65 boxes (n = 19, i = 19 × 0.75 = 14.25 ↑ 15)
standard deviation = 9.95 boxes (from calculator)
(b) As Q2 – Q1 (= 8) > Q3 – Q2 (= 4), the data skewed to the left.
(c) In general, the sales of “Easy Wash” is relatively better than “Cleany” as “Easy Wash” has larger
sample mean and sample median. The sample deviation of “Easy Wash” is smaller which
indicates that the sales of “Easy Wash” among different supermarkets are more stable while the
difference in the sales of “Cleany” between different supermarkets is bigger.

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26.
(a)
Sample Sample Sample
mean (g) standard deviation (g) variance (g2)
Burger 33.64 7.50 56.25
Fried chicken 20.64 9.77 95.45

(b) According to the above table, burger generally contains more fat than fried chicken and the fat
content among burgers is less deviate than that among fried chicken. When the sample mean
fat content in burgers is 33.64 grams, the sample mean fat content in fried chicken is only 20.64
grams. The fat content among burgers is slightly more stable than the fat content among fried
chicken, with the respective sample standard deviation are 7.50 grams and 9.77 grams.

27.
(a) sample mean = $60; sample standard deviation = $7.39 (from calculator)
(b) sample mean = 60(0.9) = $54; sample standard deviation = 7.39(0.9) = $6.65
(c) sample mean = 60 – 5 = $55; sample standard deviation = $7.39

28.
86+85+93+108+⋯+106
(a) Sample mean = = 96.125 kg
16

(86−96.125)2 +(85−96.125)2 +⋯+(106−96.125)2

Sample standard deviation = √ = 10.782 kg
16−1

(b) Ordered array:

84 84 85 86 87 91 91 92
93 98 99 103 106 108 113 118
86+87
Q1 = = 86.5 kg (i = 16(0.25) = 4)
2

92+93
Median = = 92.5 kg (i = 16(0.5) = 8)
2

103+106
Q3 = = 104.5 kg (i = 16(0.75) = 12)
2

(c) 10th percentile = 84 kg (i = 16(0.1) = 1.6 ↑ 2)

th
90 percentile = 113 kg (i = 16(0.9) = 14.4 ↑ 15)
(d) Sample mean after the program = 96.125 (0.9) = 86.513 kg
Sample standard deviation after the program = 10.782 (0.9) = 9.704 kg
(e) Sample mean after the program = 86.513 (2.2) = 190.329 lb
Sample standard deviation after the program = 9.704 (2.2) = 21.349 lb

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29.
16+25+⋯+260
(a) Sample mean = = 141.1
10

k = 185
(b) Sample standard deviation = US$ 80.0617 (from calculator)
2 2
Sample standard variance = (80.0617) = (US$) 6409.8778
(c) First quartile = US$ 75 (i = 10(0.25) = 2.5 ↑3)
150+185
Median = = US$ 167.5 (i = 10(0.5) = 5)
2

Third quartile = US$ 190 (i = 10(0.75) = 7.5 ↑8)

(d) (i) Calculation of selling price in HK$, which is the selling price in US$×7.75
Sample Mean = 7.75 (141.1) = HK$ 1093.53
Sample standard deviation = 7.75(80.0617) = HK$ 620.4782
(ii) Calculation of total payment in HK$, which is the selling price in HK$ + 35
Sample Mean = 1093.53 + 35 = HK$ 1128.53
Sample standard deviation = HK$ 620.4782

30.
162
(a) With population size N = 162 and sample size n = 18, k = =9
18

i.e. one student should be selected from every 9 students

The next three students should have student numbers: 016, 025, 034
(b) The ordered array of the mark of the 18 students is:
23 25 28 30 31 33 35 35 36 38
39 42 44 47 48 52 55 61
20th percentile = 30 marks (i = 18 × 0.2 = 3.6 ↑ 4)
36+38
Median = = 37 marks (i = 18 × 0.5 = 9 )
2

80th percentile = 48 marks (i = 18 × 0.8 = 14.4 ↑ 15)

(c) Mean = 39 marks
Sample standard deviation = 10.5273 marks
(d) A sample of 18 students is selected from a school to attend an English aptitude test. On the
average, a student gets 39 marks with standard deviation of about 10 marks. 20% of the
students get less than 30 marks while the top 20% students get more than 48 marks.
(e) Original median before change = 37 marks
New median after change = 40 marks
40 = 0.9 (37) + a
a = 6.7

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31.
(a) ordered array 230, 242, 258, 260, 270, 273, 280, 282, 285, 290, 295, 301
20th percentile = 258 grams (i = 12(0.2) = 2.4↑3)
80th percentile = 290 grams (i = 12(0.8) = 9.6↑10)
(b) Sample mean = 272.1667 grams
Sample standard deviation = 21.3960 grams
(c) Use X to denote the weight of a cup of fruit salad
Use Y to denote the selling price of cup of fruit salad
Y = 5 + 0.095X
20th percentile = 5+ 0.095(258) = $29.51
80th percentile = 5+ 0.095(290) = $32.55
Sample mean = 5+ 0.095(272.1667) = $30.86
Sample standard deviation = 0.095(21.3960) = $2.03
(d) The selling price of a cup of fruit salad is a variable. The basic selling price is $5 with the
addition charge of $9.5 per 100 grams of salad. In this sample, the average selling price of a
cup of fruit salad is $30.86 with standard deviation $2.03. There is 20% of the fruit cups in
this sample with selling price less than $29.51 while there is 20% of them costs more than
$32.55.

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Chapter 2 Probability Distributions

1.
(a) As total probability = 1, 2k + 0.15 + 0.4 + 2k + k + k = 1, k = 0.075
(b) Most likely, there are 2 children in a family, with the probability of 0.4.
(c) P(X  4) = p(4) + p(5) = 0.075 + 0.075 = 0.15
(d) P(X ≤ 2) = p(0) + p(1) + p(2) = 0.15 + 0.15 + 0.4 = 0.7

2.
(a) 10k + 4k + 3k + 2k + k = 1, k = 0.05
(b) Most likely, Johnny can sell no 3D printer in a day.
(c) P(X > 2) = p(3) + p(4)= 0.1 + 0.05 = 0.15

3.
(a) Most likely, there are 2 requests in a day, with the probability of 0.3.
(b) P(X < 2) = 0.20 + 0.05 = 0.25
(c) P(X > 2) = 0.25 + 0.15 + 0.05 = 0.45
(d) In order to have the probability of turning a request away to be less than 0.1, the center needs to
have the capacity to serve 4 customers, P(X > 4) = 0.05 < 0.1. So the capacity must be
increased by 2.

4.
(a) a = 1 - 0.1 - 0.3 - 0.3 - 0.1 = 0.2
(b) E(X) =0(0.1) + 1(0.3) + 2(0.3) + 3(0.2) + 4(0.1) = 1.9
E(X2) =02(0.1) + 12(0.3) + 22(0.3) + 32(0.2) + 42(0.1) = 4.9
Var(X) = 02(0.1) + 12(0.3) + 22(0.3) + 32(0.2) + 42(0.1) - 1.92 = 1.29
(X) = 1.1358
5.
(a) Mean = 0(0.41) + 1(0.22) + 2(0.17) + 3(0.13) + 4(0.05) + 5(0.02) = 1.25 violations
Var(X) = 02(0.41) + 12(0.22) + 22(0.17) + 32(0.13) + 42(0.05) + 52(0.02) - 1.252 = 1.8075
(X) =1.34 violations
(b) P(X ≤ 2) = 0.41 + 0.22 + 0.17 = 0.8
(c) The result of the inspection in a large development site indicates that many of the flats (with
41% of all inspected flats) have no violation of any building codes. 80% of the flats have no
more than 2 violations. However, there is 2% of the flats have 5 violations. On the average,
there are 1.25 violations of building code being found in a flat with the standard deviation of
1.34 violations.

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6.
(a) For male employees,
Expectation = E(X) = 0(0.3) + 1(0.29) + 2(0.24) + 3(0.12) + 4(0.03) + 5(0.02) = 1.35 days
Variance = Var(X) = 02 (0.3) + 12 (0.29) + 22 (0.24) + 32 (0.12) + 42 (0.03) + 52 (0.02) − 1.352
= 1.4875 (days2)
Standard deviation = (X) = √𝑉𝑎𝑟(𝑋) = 1.2196 days

(b) For female employees

P(Y=0) = 1 - 0.32 - 0.34 - 0.06 - 0.04 - 0.03 = 0.21
Expectation = E(Y) = 0(0.21) + 1(0.32) + 2(0.34) + 3(0.06) + 4(0.04) + 5(0.03) = 1.49 days
Variance = Var(Y) = 02 (0.21) + 12 (0.32) + 22 (0.34) + 32 (0.06) + 42 (0.04) + 52 (0.03) − 1.492
= 1.3899 (days2)
Standard deviation = (Y) = √𝑉𝑎𝑟(𝑌) = 1.1789 days
(c) The number of sick leave taken by male employees and female employees are quite similar in
terms of both expectation and standard deviation.

7.
(a) k = 1 – 0.2 – 0.5 – 0.2 = 0.1
(b) E(X) = 8000(0.2) + 9000(0.5) + 12000(0.2) + 18000(0.1) = $10300
Var(X) = 80002(0.2) + 90002(0.5) + 120002(0.2) + 180002(0.1) – 103002 = 8410000 ($2)
σ(X) = √8410000 = $2900
(c) Y = X - 10000
E(Y) = E(X) – 10000 = 10300 – 10000 = $300
Var(Y) = Var(X) = 8410000 ($2)
σ(Y) = σ(X) = $2900
(d) P(Y > 5000) = P(X > 15000) = 0.1
(e) The cost of this investment is $10,000. The expected profit for investing in this stock for a
month is $300 with a standard deviation of $2900. There is a 10% chance of getting a profit of
more than $5000.

8.
(a) As each probability must within range of 0 and 1, 0  m  0.5
(b) E(X) = 2000(0.1) + 6000(0.15) + 10000(0.25) + 15000(0.4) + 18000(0.1) = $11400
Var(X) = 20002(0.1) + 60002 (0.15) + 100002 (0.25) + 150002 (0.4) + 180002 (0.1) - 114002
= 23240000 ($2)
σ(X) = √Var(X) = $4820.79
(c) Let Y be the profit, Y = X - 9000
E(Y) = E(X) - 9000 = $2400

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9.
(a) As total probability = 1, k + 2k + 4k + 2.5k + 0.5k = 1, 10k = 1, k = 0.1
(b) E(X) = 0(0.1) + 1(0.2) + 2(0.4) + 3(0.25) + 4(0.05) = 1.95
Var(X) = 02(0.1) + 12(0.2) + 22(0.4) + 32(0.25) + 42(0.05) – 1.952 = 1.0475
(X) = 1.0235
(c) Use Y to represent number of hours needed for handling complaints in a day
Y = 1.5X
E(Y) = 1.5 E(X) = 2.925 hours
(Y) = 1.5 (X) = 1.5(1.0235) = 1.5353 hours
(d) P(X = 0) = 0.1
(e) P(Y > 5) = P(1.5X > 5) = P(X > 3.33) = 0.5(0.1) = 0.05
(f) The number of hours needed for handling complaints in a day is a variable. It takes the
average of 2.9 hours, with standard deviation of 1.5 hours for handling complaints in a day.
Sometimes, there is no complaints in a day with probability 0.1, while there is a chance of 0.05
that it takes more than 5 hours in a day for handling complaints.

10.
(a) As total probability = 1, a + a + 2a + 3a + 8a + 4a = 1, a = 1/19
(b) E(X) = 0(1/19) + 1(1/19) + 2(2/19) + 3(3/19) + 4(8/19) + 5(4/19) = 3.4737 orders,
Var(X) = 02(1/19) + 12 (1/19) + 22 (2/19) + 32 (3/19) + 42 (8/19) + 52 (4/19) - 3.47372
=1.8282
 (X) = √1.8282 =1.3521 orders
(c) Y = 150+ 80X,
E(Y) = 150 + 80E(X) = $427.89,
(Y) = 80(X) = $108.17
(d) Mr. Smith’s salary is a variable. His basic daily salary is $150 and he gets variable bonus
relates to the number of job orders he has in a day. On the average, he earns about $430 a day
with a standard deviation of about $110.

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11.
(a) According to Sammy’s description, let the probability to have no job in a day is k, then the
probability distribution of X:
x 0 1 2 3
P(X = x) k 2k 2k 𝑘
2
𝑘 2
As total probability = 1, k + 2k + 2k + = 1, k =
2 11

So, the probability distribution function of X:

x 0 1 2 3
P(X = x) 2 4 4 1
11 11 11 11
(b) E(X) = 0(2/11) + 1(4/11) + 2(4/11) + 3(1/11) = 1.3636 jobs
Var(X) = 02(2/11) + 12(4/11) + 22(4/11) + 32(1/11) - 1.36362 = 0.7770
σ(X) = √0.7770 = 0.8814 jobs
(c) Let Y be the daily salary, Y = 800 + 300X
E(Y) = 800 + 300E(X) = $1209.08
σ(Y) = 300σ(X) = $264.42
(d) Sammy is a senior technician. His daily salary is a variable. His basic daily salary is $800
and he gets variable commission relates to the number of job orders he has in a day. On the
average, he earns about $1200 a day with a standard deviation of about $260.

1
12. As total probability = 1, a + a + 3a + 3a + 2a + 2a = 1, a = 12

x 11 12 13 14 15 16
P(X=x) 1 1 3 3 2 2
12 12 12 12 12 12

1 1 3 3 2 2
(a) E(X) = 11(12) + 12(12) + 13(12) + 14(12) + 15 (12) + 16(12) = 13.8333 customers

1 1 3 3 2 2
Var(X) = 112(12) + 122(12) + 132(12) + 142(12) + 152(12) + 162(12) - 13.83332 = 2.1398

σ(X) = √2.1398 = 1.4628 customers

(b) Denote the daily income as Y, then Y = 300 + 75X
E(Y) = 300 + 75E(X) = $1337.50
σ(Y) = 75σ(X) = $109.71

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13. Y = 1.06X + 800

E(Y) = 1.06E(X) + 800 = 1.06(15000) + 800 = $16700
σ(Y) = √𝑉𝑎𝑟(𝑌) = √1.062 𝑉𝑎𝑟(𝑋) = √1.062 (13002 ) = $1378

14. Let X be the annual revenue in terms of US dollar, Y be the annual revenue in terms of Hong
Kong dollars, Y = 7.8X
(a) As E(X) = 13320, σ(X) = 210
E(Y) = 7.8E(X) = $103896
σ(Y) = √7.82 𝑉𝑎𝑟(𝑋) =√7.82 (2102 ) = $1638
(b) Let W be the annual profit in terms of HK dollar, W = Y – 100000
E(W) = E(Y) – 100000 = $3896
σ(W) = σ(Y) = $1638

15. Let X be the monthly revenue in terms of US dollar, Y be the monthly revenue in terms of Hong
Kong dollars, Y = 7.8X
(a) As E(X) = 7000, σ(X) = 900
E(Y) = 7.8E(X) = $54600
σ(Y) = √7.82 𝑉𝑎𝑟(𝑋) =√7.82 (9002 ) = $7020
(b) Let W be the monthly profit in terms of HK dollar, W = Y – 14000
E(W) = E(Y) – 14000 = $40600
σ(W) = σ(Y) = $7020
(c) Mary is an online trader who helps customer to purchase goods from the United States and
deliver the goods to the customers. The cost of her business is HK$ 14000 per month. On the
average, she has a monthly profit of about HK$ 40000 with a standard deviation of about HK$
7000.

16.
(a) P(X = 0) = 4C0(0.88)4 = 0.5997
(b) P(X = 9) = 10C9(0.4)9(0.6)1 = 0.0016
(c) P(X = 12) = 15C12(0.5)12(0.5)3 = 0.0139

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17.
(a) X be the number of customers in the line would choose type A coffee.
There are 12 customers in the line and the chance for each customer choose type A coffee is 0.75
n = 12, p = 0.75; X ~ Bin(12, 0.75).
(b) P(X = 8) = 12C8(0.75)8(0.25)4 = 0.1936
(c) P(X ≥ 10) = p(10) + p(11) + p(12)
= 12C10(0.75)10(0.25)2 + 12C11(0.75)11(0.25)1 + 12C12(0.75)12(0.25)0
= 0.3907
(d) P(X ≥ 2) = 1 - p(0) - p(1)
= 1 - 12C0(0.75) 0(0.25) 12 - 12C1 (0.75)1 (0.25)11
= 0.999998

18.
(a) X be the number of kids not going to kindergarten in a sample of 30 kids.
There are 30 kids in the sample and the chance for each kid not going to kindergarten is 0.03
n = 30, p = 0.03; X ~ Bin(30, 0.03)
(b) P(X = 1) = 30C1 (0.03)1 (0.97)29 = 0.3721
(c) P(X > 3) = 1 – p(0) – p(1) – p(2) – p(3)
= 1 - 30C0(0.03) 0(0.97) 30 - 30C1 (0.03)1 (0.97)29 - 30C2 (0.03)2 (0.97)28 - 30C3 (0.03)3 (0.97)27
= 0.0119

19.
(a) X be the number of computers sold in a week.
Jimmy will make 4 new contacts in a week and the chance to sell a computer is 0.3 for each
contact
n = 4, p = 0.3; X ~ Bin(4, 0.3)
(b) With p(x) = 4Cx(0.3)x(0.7)(4-x), for x = 0, 1, 2, 3, 4
x 0 1 2 3 4
p(x) 0.2401 0.4116 0.2646 0.0756 0.0081
(c) Most likely, 1 computer will be sold in a week, with probability = 0.4116
(d) E(X) = np = 4(0.3) = 1.2 computers
Var(X) = np(1-p) = 4(0.3)(0.7) = 0.84
σ(X) = √𝑛𝑝(1 − 𝑝) = √4(0.3)(0.7) = 0.9165 computers
(e) Jimmy is a salesman of home computer. He makes 4 new contacts every week. Most likely,
he sells 1 computer in a week with probability 0.4. He has a high chance to sell about 0 to 2
computers in a week with a total probability of greater than 0.9.

18
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20.
(a) X be the number of days he will be late to school in a week.
The boy goes to school 5 days in a week and the chance for him to be late in a day is 0.3
n = 5, p = 0.3; X ~ Bin(5, 0.3)
(b) E(X) = np = 5 × 0.3=1.5 days

(c) σ(X) = √𝑛𝑝(1 − 𝑝) = 5(0.3)(0.7) = 1.0247 days

(d) As E(X) = 1.5, the most likely value of x should be around 1.5.
P(X = 1) = 5C1 (0.3)1 (0.7)4 = 0.3602
P(X = 2) = 5C2 (0.3)2 (0.7)3 = 0.3087
Most likely he will be late for 1 day with probability = 0.3602

21. The variable is the number of customers would choose coffee A

Let X be the number of customers would choose coffee A. There are 15 customers in the café
when it is fully occupied and the chance for a customer to choose coffee A is 0.6.
X ~ Bin(15, 0.6)
E(X) = 15(0.6) = 9 customers
σ(X) = √𝑛𝑝(1 − 𝑝) = √15(0.6)(0.4) = 1.8974 customers

In this café, there are three types of coffee, namely coffee A, coffee B, and coffee C. Coffee A
is the most popular coffee among the three. There are 15 seats in the café. When the café is
fully occupied, there are most likely to have 9 customers ordering coffee. It is relatively high
chance to have about 7 to 11 customers ordering coffee A.

22.
(a) The variable is the number of people will buy some snacks from the nearby shop.
Use X to denote the number of people will buy some snacks from the nearby shop.
There are 15 people getting ready to go into the cinema and the chance for each person will buy
some snacks from the nearby shop is 0.4.
X ~ Bin(15, 0.4)
As E(X) = 15(0.4) = 6, most likely there are 6 people will buy some snacks from the nearby
shop before going into the cinema. P(X = 6) = 15C6(0.4)6(0.6)9 = 0.2066
(b) P(X ≥ 4) = 1 – P(X = 0) – P(X = 1) – P(X = 2) – P(X = 3)
= 1 - (0.6)15 - 15C1(0.4)1(0.6)14 - 15C2(0.4)2(0.6)13 - 15C3(0.4)3(0.6)12 = 0.9095

19
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23.
(a) The variable is the number of staff in the company has received tertiary education.
Use X to denote the number of staff in the company has received tertiary education.
There are 12 staff in the company and the chance for each staff has received tertiary education is
0.35.
X ~ Bin(12, 0.35)
As E(X) = 12(0.35) = 4.2, try P(X = 4) and P(X = 5) to find the most likely value of x.
P(X = 4) = 12C4(0.35)4(0.65)8 = 0.2367
P(X = 5) = 12C5(0.35)5(0.65)7 = 0.2039
Most likely, there are 4 staffs in the company has received tertiary education with probability
0.2367
(b) P(X ≤ 3) = P(X = 0) + P(X = 1) + P(X = 2) + P(X = 3)
= (0.65)12 + 12C1(0.35)1(0.65)11 + 12C2(0.35)2(0.65)10 + 12C3(0.35)3(0.65)9 = 0.3467

24.
(a) The variable is the number of people needs more than 2 minutes to finish the transactions.
Let X be the number of people needs more than 2 minutes to finish the transactions. There are
8 people in the queue and the chance for each person needs more than 2 minutes to finish the
transaction is 0.3.
X ~ Bin(8, 0.3)
P(X < 3) = p(0) + p(1) + p(2)
= 8C0(0.3)0(0.7)8 + 8C1 (0.3)1(0.7)7 + 8C2(0.3)2(0.7)6
= 0.5518
(b) P(X = 0) = (0.7)8 = 0.0576
(c) P(X = 8) = (0.3)8 = 0.00007

25.
(a) The variable is the number of days that the man can catch a fish.
Let X be the number of days that the man can catch a fish.
The man go fishing 7 days in a week and the chance he can catch a fish is 0.6.
X ~Bin(7, 0.6)
E(X) = 7(0.6) = 4.2
Standard deviation of X = √7(0.6)(0.4) = 1.2961
(b) P(X ≥ 5) = P(X=5) + P(X=6) + P(X=7)
= 𝐶57 × 0.65 × 0.42 + 𝐶67 × 0.66 × 0.41 + 𝐶77 × 0.67 × 0.40
= 0.2612736 + 0.1306368 + 0.0279936
= 0.4199

20
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26.
(a) The variable is the number of days with car accident in the city for a month with 30 days.
Let X be the number of days with car accident in the city for a month with 30 days.
There are 30 days in this month and the chance for a day to have a car accident is 0.2.
X ~Bin(30, 0.2)
E(X) = 30(0.2) = 6
Standard deviation of X = √30(0.2)(0.8) = 2.1909
(b) There are 30 days in November.
Let X be the number of days with car accident in the city in November, X ~Bin(30, 0.2)
P(X ≥ 3) = 1 - p(X=0) + P(X=1) + P(X=2)
= 1 − 𝐶030 × 0.20 × 0.830 − 𝐶130 × 0.21 × 0.829 − 𝐶230 × 0.22 × 0.828
= 1 – 0.0012379 – 0.0092846 – 0.033656 = 0.9558

27.
(a) As total probability = 1, 0.55 + 0.25 +0.1 +3k + k = 1, k = 0.025
(b) E(X) = 1(0.55) + 2(0.25) + 3(0.1) + 4(0.075) + 5(0.025) = 1.775 nights
Var(X) = 12(0.55) + 22(0.25) + 32(0.1) + 42(0.075) + 52(0.025) - 1.7752 = 1.1244
σ(X) = √𝑉𝑎𝑟(𝑋) = 1.0604 nights
(c) The variable is the number of customers staying 1 night in the hotel.
Use Y to denote the number of customers staying 1 night in the hotel.
There are 12 bookings being selected from the system and the chance for each booking is an one
night stay is 0.55.
Y ~ Bin(12, 0.55)
P(Y = 5) = 12C5(0.55)5(0.45)7 = 0.1489

28.
(a) The variable is the number of completed crossword puzzle from Monday to Saturday.
Let X be the number of completed crossword puzzle from Monday to Saturday.
There are 6 puzzles in a week and the chance to finish a puzzle is 0.8.
X ~ Bin(6, 0.8)
E(X) = np = 6(0.8) = 4.8 puzzles
σ(X)= √6(0.8)(0.2) = 0.9798 puzzles
(b) P(X  5) = P(X = 5) + P(X = 6) = 6C5(0.8)5(0.2)1 + (0.8)6 = 0.655

21
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29. Let X be the number of patient have disease X in a room in West Wing, X ~ Bin(9, 0.29).
(a) E(X) = 9(0.29) = 2.61 patients,
σ(X) = √𝑛𝑝(1 − 𝑝) = √9(0.29)(0.71) = 1.3613 patients
(b) As E(X) = 2.61, most likely there are 2 or 3 patients have disease X in a room in West Wing
P(X = 2) = 9C2(0.29)2(0.71)7 = 0.2754
P(X = 3) = 9C3(0.29)3(0.71)6 = 0.2624
So, most likely there are 2 patients having disease X in a room in West Wing and the probability
there are 2 patients having disease X in a room in West Wing is 0.2754.
(c) P(X ≥ 3) = 1 – P(X < 3) = 1 – [P(X = 0) + P(X = 1) + P(X = 2)]
= 1 – (0.71)9 - 9C1(0.29)1(0.71)8 – 0.2754 = 0.5102
(d) King Louis Hospital is an elderly hospital which only admit patients who aged above 70.
Every room in West Wing has 9 male patients. On the average, there are 2.6 patients in a room
has disease X with the standard deviation of 1.4. Most likely there are 2 patients have disease
X in a room. There is more than 50% chance that there are at least 3 patients in a room have
disease X.

30.
(a) profit = total revenue – total cost
Y = 4000X + 20000 – 50000 – 800X = 3200X – 30000
(b) Use X to denote the number of companies will require recycling service, X ~ Bin(33, 0.75)
As E(X) = 24.75, most likely there are 24 or 25 companies require recycling service.
P(X = 24) = 33C24(0.75)24(0.25)9 = 0.1476
P(X = 25) = 33C25(0.75)25(0.25)8 = 0.1594
So, most likely there are 25 companies will require recycling service and the probability that
there are exactly 25 companies requiring recycling service is 0.1594.
(c) (i) Y is maximum when all companies require the recycling service, so the maximum
Y = 3200(33) – 30000 = $75600
(ii) E(Y) = 3200E(X) – 30000 = 3200(33)(0.75) – 30000 = $49200
(iii) σ(Y) = 3200σ(X) = 3200√33(0.75)(1 − 0.75) = $7959.90
(d) P(Y > 70000) = P(3200X – 30000>70000) = P(X > 31.25) = P(X = 32) + P(X = 33)
= 33C32(0.75)32(0.25)1 + (0.75)33 = 0.0009
(e) There will be 33 companies moving in in this commercial building. The monthly profit gained
by providing recycling service for this building depends on the number of companies requiring
the recycling service. The expected monthly profit is $49200 with standard deviation about
$8000. The maximum monthly profit can be $75600, however, the chance is relatively low.
The chance to earn more than $70000 in a month is only 0.0009.

22
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31.
(a) 0.4772
(b) P(Z < 0) + P(0 < Z < 1.86) = 0.5 + 0.4685 = 0.9685
(c) 0.0948
(d) P(-0.24 < Z < 0) + P(0 < Z < 2.40) = 0.0948 + 0.4918 = 0.5866
(e) P(-1.79 < Z < 0) – P(-1.30 < Z < 0) = 0.4633 – 0.4032 = 0.0601
(f) P(Z < 0) – P(-1.58 < Z < 0) = 0.5 – 0.4429 = 0.0571

32. Use R to represent the monthly revenue, R ~ N(60000, 130002)

65000−60000
(a) P(R > 65000) = P(Z > ) = P(Z >0.38) = 0.5 – 0.1480 = 0.3520
13000

40000−60000 58000−60000
(b) P(40000 < R < 58000) = P( <Z< )=P(-1.54 < Z < -0.15)
13000 13000

= 0.4382 – 0.0596 = 0.3786

35000−60000
(c) P(R < 35000) = P( Z < ) = P(Z <-1.92) = 0.5 – 0.4725 = 0.0275
13000

33. Let X be the number of minutes a flight being delay, X ~ N(0, 102)
(a) For a flight arrives before 18:00, that means X < -10,
−10−0
P(X < -10) = P(Z < ) = P(Z < -1) = 0.5 – 0.3413 = 0.1587
10

(b) For the passenger to be late, that means X > 20

20−0
P(X > 20) = P(Z > ) = P(Z > 2) = 0.5 – 0.4772 = 0.0228
10

23
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34.
(a) k = 0.71
(b) k = -0.23
(c) P(Z > k) = 0.123
P(0 < Z < k) = 0.5 – 0.123 = 0.377
k = 1.16
(d) P(Z < k) = 0.912
P(0 < Z < k) = 0.912 – 0.5 = 0.412
k = 1.35
(e) P(Z < k) = 0.1515
P(k < Z < 0) = 0.5 – 0.1515 = 0.3485
k = -1.03
(f) P(Z > k) = 0.9408
P(k < Z < 0) = 0.9408 – 0.5 = 0.4408
k = -1.56

35. Let X be the monthly spending, X ~ N(5000, 12002)

(a) P(X > k) = 0.102
P(5000 < X < k) = 0.5 – 0.102 = 0.398
As P(0 < Z < 1.27) = 0.398 from table
𝑘 −5000
= 1.27
1200

k = 5000 + 1.27(1200) = $6524

(b) P(X < k) = 0.05
P(k < X < 5000) = 0.5 – 0.05 = 0.45
P(-1.645 < Z < 0) = 0.45 from table
𝑘 −5000
= −1.645
1200

k = 5000 + (-1.645) (1200) = $3026

36. Let X be the price of a air ticket to European countries, X ~ N(5200, 7402)
P(5200 - k < X < 5200 + k) = 0.95
P(-1.96 < Z < 1.96) = 0.95,
P(0 < Z < 1.96) = 0.475 (from table)
5200+𝑘−5200
= 1.96
740

k = 1450.4

24
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37. Let X be the amount a customer spends on a single visit, X ~ N(75, 212)
Suppose k be the minimum amount for using credit card,
P(k < X) = 0.8
P(k < X < 75) = 0.8 – 0.5 = 0.3
As P(-0.84 < Z < 0) = 0.3 from the table
𝑘−75
= -0.84,
21

k = 75 - 0.84(21) = $57.36

38. Let X be the score, X ~ N(66.5, 12.62)

78-66.5
(a) P(X > 78) = P(Z > ) = P(Z > 0.91) = 0.5 – 0.3186 = 0.1814 = 18.14%
12.6
(b) Let k be the minimum score to get A,
P(X > k) = 0.117
P(66.5 < X < k) = 0.5 – 0.117 = 0.383
As P(0 < Z < 1.19) = 0.383 from table
𝑘−66.5
= 1.19,
12.6

k = 66.5 + 12.6(1.19) = 81.49 marks

39. Let X (in minutes) be the journey time on a particular day, X ~ N(30, 52)
40−30
(a) P(X > 40) = P(Z > ) = P(Z > 2) = 0.5 - 0.4772 = 0.0228
5

(b) P(X < k) = 0.937

P(30 < X < k) = 0.937 – 0.5 = 0.437
As P(0 < Z < 1.53) = 0.437 from table
𝑘−30
= 1.53,
5

k = 30 + 1.53(5) = 37.65

25
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40. Let X be the spending of a card holder, X ~ N(3000, 8002)

4000 – 3000
(a) P(X > 4000) = P(X > ) = P(Z > 1.25) = 0.5 – 0.3944 = 0.1056, i.e. 10.56%
800
2500 – 3000 4500 – 3000
(b) P( 2500 < X < 4500) = P( <Z< )
800 800
0.2324+0.2357 0.4693+0.4699
= P(-0.625 < Z < 1.875) = + = 0.23405 + 0.4696 = 0.7037
2 2

(c) P(X > k) = 0.05

P(3000 < X < k) = 0.5 – 0.05 = 0.45
as P(0 < Z < 1.645) = 0.45 from table
𝑘−3000
= 1.645,
800

k = 3000 + 1.645(800) = $4316

41. Let X be the daily water consumption of a Hong Kong citizen, X  N(135, 362 ).
180 − 135
(a) P( X  180) = P ( Z  )
36
= P ( Z  1.25)
= 0.5 + 0.394 4
= 0.8944
(b) P(X > r) = 0.6915
P(r < X < 135) = 0.6915 – 0.5 = 0.1915
as P(-0.50 < Z < 0) = 0.1915 (from table)
r−135
= −0.50
36

r = 135 +(-0.5)(36) = 117

26
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42. Let X be the length of a coil of metal wire, X  N(551.15, 152 ) .

(a) P( X  545) = P( Z  545 − 551.15 )

15
= P( Z  −0.41)
= 0.159 1 + 0.5
= 0.6591
(b) P(X < W) = 0.02
P(W < Z < 551.15) = 0.5 – 0.02 = 0.48
as P(-2.05 < Z < 0) = 0.48 (from table)
W−551.15
= −2.05
15

W = 551.15 + (-2.05)(15) = 520.4

43 Let X be the consultation time, X ~ N(7, 1.22)

5.5−7 6.4−7
(a) P(5.5 < X < 6.4) = P( <𝑍< ) = P(-1.25 < Z < -0.5) = 0.3944 – 0.1915 = 0.2029
1.2 1.2

9.7−7
(b) P(X < 9.7) = P(𝑍 < ) = P( Z < 2.25) = 0.5 + 0.4878 = 0.9878
1.2

(c) P(7 – T < X < 7 + T) = 0.95

7−𝑇 −7 7+𝑇−7
P( <Z< ) = 0.95
1.2 1.2

𝑇 0.95
P(0 < Z < )= =0.475
1.2 2

As P(0 < Z < 1.96) = 0.475 from table

𝑇
= 1.96,
1.2

T = 1.96(1.2) = 2.352
(d) The variable is the number of patients will spend less than 9.7 minutes with the doctor.
Let Y be the number of patients spend less than 9.7 minutes with the doctor.
There are 8 patients waiting for the consultation and the chance for each patient to spend less
than 9.7 minutes is 0.9878 (from (b)).
Y ~ Bin(8, 0.9878)
P(Y = 6) = 8C6(0.9878)6(0.0122)2 = 0.0039

27
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44. Use X to denote the mock examination result, X ~ N(70, 212)

95−70
(a) P(X > 95) = P(𝑍 > ) = P(Z > 2.27) = 0.5 – 0.4884 = 0.0116
11

(b) Finding R1: With 6% students get high distinction, 12% students get distinction and 32%
students get credit, there are a total of 50% students get Credit or above. So the R1 is the
median, which is 70 marks.
Finding R2:
P(70 < X < R2) = 0.32
As P(0 < Z < 0.92) = 0.32 from table
R2 = 70 + 11(0.92) = 80.12
(c) W = enrollment fee – scholarship
scholarship is $2000 when a student gets high distinction, w = 800 – 2000 = -1200 with
probability 0.06
scholarship is $1000 when a student gets distinction, w = 800 – 1000 = -200 with probability
0.12
scholarship is $0 for other cases, w = 800 with probability 0.32 + 0.2 + 0.3 = 0.82
w -1200 -200 800
P(W = w) 0.06 0.12 0.82

E(W) = (-1200)(0.06) + (-200)(0.12) + 800(0.82) = $560

45. Let X be the monthly salary of an employee, X ~ N(12000, 1000 2 )

Let Y be the monthly salary of an employee after the salary adjustment.
With Y = (1.05)X
(a) Mean of Y = 1.05(12000) = $12600
Standard deviation of Y = 1.05(1000) = $1050
(b) P(Y < k) = 0.15
P(k < Y < 12600) = 0.5 – 0.15 = 0.35
As P(-1.04 < Z < 0) = 0.35 (from table)
𝒌−𝟏𝟐𝟔𝟎𝟎
= -1.04
𝟏𝟎𝟓𝟎

k = 12600 - (1.04)(1050) = 11508

28
 ES 2020-21

46. Let X be the monthly revenue of the café, X ~ N(45000, 80002)

35000−45000 41800−45000
(a) P(35000 < X < 41800) = P( <Z< ) = P(-1.25 < Z < -0.4)
8000 8000

= 0.3944 – 0.1554 = 0.239

(b) P(X < K) = 0.67,
P(45000 < X < K) = 0.67 – 0.5 = 0.17,
As P(0 < Z < 0.44) = 0.17 (from table)
𝐾−45000
= 0.44,
8000

K = 48520
(c) Use M to denote May’s monthly salary, M = 7000 + 0.3X
E(M) = 7000 + (0.3)E(X) = 20500
Var(M) = 0.32 Var(X) = 5760000
17000−20500
(d) P(M < 17000) = P(Z < ) = P(Z < -1.46) = 0.5 – 0.4279 = 0.0721
√5760000

47. Let X be the delivery cost of a small package, X ~ N(60, 122)

40−60
(a) P(X ≥ 40) = P(Z > ) = P(Z > -1.67) = 0.5 + 0.4525 = 0.9525
12

(b) P(X > M) = 0.879

P(M < X < 60) = 0.879 – 0.5 = 0.379
P(-1.17 < Z < 0) = 0.379 from table
M = 60 + 12(-1.17) = 45.96
(c) Y = 200 + 1.8X
Mean of Y = 200 + 1.8(60) = $308
Standard deviation of Y = 1.8(12) = $21.6
(d) P(A package will be charged more by the new system)
350−308
= P(Y < 350) = P(Z < ) = P(Z < 1.94) = 0.5 + 0.4738 = 0.9738
21.6

29
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48. Let X be the monthly salary, X ~ N(15000, 5002)

16000−15000
(a) P(X > 16000) = 𝑃 (𝑍 > ) = P(Z > 2) = 0.5 - 0.4772 = 0.0228
500

(b) P(X < t) = 0.85

P(16000 < X < t) = 0.85 – 0.5 = 0.35
P(0 < Z < 1.04) = 0.35 (from table)
𝑡−15000
= 1.04
500

t = 15520
(c) Let M be the adjusted salary, M = 1.1X
E(M) = (1.1)E(X) = 16500
ơ(M) = (1.1) ơ(X) = 550
17000−16500
(d) P(M > 17000) = 𝑃 (𝑍 > ) = P(Z > 0.91) = 0.5 - 0.3186 = 0.1814
550

So the statement is incorrect.

49. Let X be the waiting time and Y be the treatment time.

X ~ N(10, 42)
Y ~ N(55, 52)
5−10
(a) P(X < 5) = P(Z < ) = P(Z < -1.25) = 0.5 – 0.3944 = 0.1056
4

(b) T = X + Y,
2
T ~ N(10 + 55, 42 + 52) , T ~ N(65, 41) i.e. T ~ N(65, √41 )

60−65
(c) P(T < 60) = P(Z < ) = P(Z < -0.78) = 0.5 - 0.2823 = 0.2177
√41

30
 ES 2020-21

50. Let X be the time he spends on collecting mail, X ~ N(40, 122)

Let Y be the time he spends on delivering mail, Y ~ N(65, 82)
Let T be the total time spend on two jobs, T = X + Y
2
E(T) = 40 + 65, Var(T) = 122 + 82 = 208, i.e. T ~ N(105, √208 )

120−105
(a) P(T < 120) = P (Z < ) = P(Z < 1.04) = 0.5 + 0.3508 = 0.8508
√208

100−105
(b) P(T < 100) = P (Z < ) = P(Z < -0.35) = 0.5 - 0.1368 = 0.3632
√208

(c) P(T > M) = 0.1

P(105 < T < M) = 0.5 – 0.1 = 0.4
As P(0 < Z < 1.28) = 0.4, from table
𝑀−105
= 1.28
√208

M = 105 + 1.28(√208 ) = 123.46

51. Let C be the net content in a bottle. Then C ~ N(100, 52).

(a) P(C > K) = 0.937
P(K < C < 100) = 0.937 – 0.5 = 0.437
As P(-1.53 < Z < 0) = 0.437 (from table)
𝐾−100
So = -1.53 , K = 92.35
5

90−100
(b) P(C < 90) = P(Z < ) = P(Z < –2) = 0.5 - 0.4772 = 0.0228
50

(c) Let Y be the number of bottles has net content less than 90 mL, Y ~ Bin(3, 0.0228)
P(the company will be fined for $30000) = P(Y ≥ 1) = 1 – P(Y = 0) = 1 – (0.9772)3 = 0.0669
(d) The net content in a bottle of lotion X follows a normal distribution with mean 100 mL and
standard deviation of 5 mL. The chance for a bottle of lotion X with net content of less than
90 mL is 0.0228. A fined of $30000 will be charged if any one of the three sampled bottles has
net content of less than 90 mL, which probability is 0.0669.

31
 ES 2020-21

Chapter 3

Sampling Distributions and Central Limit Theorem

1. Let X be the volume of a bottle of cola, X ~ N(1.25, 0.12);

0.12
(a) For n = 2, 𝑋̅ ~ N(1.25, )
2

(ai) expectation of sample mean E(𝑋̅) = 1.25 litres

0.1
(aii) standard error of sample mean SE(𝑋̅) = = 0.0707 litres
√2

0.12
(b) For n = 4, 𝑋̅ ~ N(1.25, )
4

(ai) expectation of sample mean E(𝑋̅) = 1.25 litres

0.1
(aii) standard error of sample mean SE(𝑋̅) = = 0.05 litres
√4

0.12
(c) For n = 6, 𝑋̅ ~ N(1.25, )
6

(bi) expectation of sample mean E(𝑋̅) = 1.25 litres

0.1
(bii) standard error of sample mean SE(𝑋̅) = = 0.0408 litres
√6

2. Let X be the downloading time, X ~ N(12, 2.52)

2.52
For n = 5 then X ~ N(12, )
5

(a) expectation E(𝑋̅) = 12 seconds

2.5
(b) standard error SE(𝑋̅)= = 1.1180 seconds
√5

3. Let X be the length of a metal wire, μ = 25 and σ = 0.2

0.22
For n = 35, by C.L.T. 𝑋̅ ~ N(25, )
35

(a) expectation E(𝑋̅) = 25 cm

0.2
(b) standard error SE(𝑋̅)= = 0.0338 cm
√35

32
 ES 2020-21

4. Let X be the lifetime of a battery, X ~ N(8200, 502 )

502
For n = 40, then X ~ N(8200, 40 )

(a) expectation E(𝑋̅) = 8200 hours

50
(b) standard error SE(𝑋̅)= = 7.9057 hours
√40

5. Let X be the value of the account payable for a bookstore, X ~ N(2600, 1502)
1502
For n = 16, 𝑋̅ ~ N(2600, )
16

(a) Expectation E(𝑋̅) = $2600

150
(b) Standard error SE(𝑋̅) = = $37.5
√16

6. Let p be the population proportion of defective item, p = 0.09,

0.09(0.91)
For n = 80, 𝑝̂ ~ 𝑁(0.09, )
80

(a) expectation E(𝑝̂ ) = 0.09

0.09(0.91)
(b) standard error SE(𝑝̂ ) = √ = 0.0320
80

7. Let p be the proportion of left-handed resident, p = 0.2

0.2(0.8)
For n = 75, 𝑝̂ ~ 𝑁 (0.2, )
75

(a) expectation E(𝑝̂ ) = 0.2

0.2(0.8)
(b) standard error SE(𝑝̂ ) = √ = 0.0462
75

8. Let p be the proportion of customers would not pay the bill by monthly instalment if the credit
amount is less than $10,000, p = 0.7
0.7(0.3)
For n = 40, 𝑝̂ ~ 𝑁 (0.7, )
40

(a) expectation of sample proportions E(𝑝̂ ) = 0.7

0.7  0.3
(b) standard error of sample proportions SE(𝑝̂ ) = =0.0725
40

33
 ES 2020-21

9. Let p be the proportion of passengers refuse the invitation, p = 0.87

0.87(0.13)
For n = 350, 𝑝̂ ~ N(0.87, )
350

(a) expectation E(𝑝̂ ) = 0.87

0.87  0.13
(b) standard error SE(𝑝̂ ) = =0.01798
350

10. Let p be Johnny's supportive rate, p = 0.65,

0.65(0.35)
For n = 400, 𝑝̂ ~ 𝑁(0.65, )
400

(a) expectation E(𝑝̂ ) = 0.65

0.65×0.35
(b) standard error SE(𝑝̂ ) = √ = 0.0238
400

34
 ES 2020-21

Chapter 4 Estimation

1. For the estimation of the population mean length of a paper

𝑥̅ = 10.998, 𝜎 = 0.02, 𝑛 = 100, 𝑧0.025 = 1.96
(a) point estimate = 10.998 inches
0.02
(b) sampling error at 95% confidence level = 1.96 = 0.0039 inches
√100

0.02 0.02
(c) 95% C.I. for μ = (10.998 − 1.96 , 10.998 + 1.96 ) = (10.994, 11.002) inches
√100 √100

2. For the estimation of the population mean weight of a new born baby
𝑥̅ = 2.95, 𝜎 = 0.45, 𝑛 = 20, z0.05 = 1.645
(a) point estimate = 2.95 kg
0.45
(b) sampling error at 90% confidence level = 1.645 = 0.1655 kg
√20

(c) 90% C.I. for μ = (2.95 - 0.1655, 2.95 + 0.1655) = (2.7845, 3.1155) kg

3. For the estimation of the population mean time required for one seminar
𝑥̅ = 75, 𝜎 = 10, 𝑛 = 40, 𝑧0.025 = 1.96
point estimate = 75 minutes
10
sampling error at 95% confidence level = 1.96 = 3.099 minutes
√40

95% C.I. for μ = (75 - 3.099, 75 + 3.099) = (71.901, 78.099) minutes

4. For the estimation of the population mean amount of paint contained in a one-gallon can
𝑥̅ = 0.995, 𝜎 = 0.02, 𝑛 = 50, 𝑧0.005 = 2.575
point estimate = 0.995 gallon
0.02
sampling error at 99% confidence level = 2.575 = 0.0073 gallon
√50

0.02 0.02
99% C.I. for μ = (0.995 – 2.575 , 0.995 + 2.575 ) = (0.9877, 1.0023) gallon
√50 √50

35
 ES 2020-21

5.
(a) For the estimation of the population mean volume of milk in a bottle
𝑥̅ = 345, 𝜎 = 20, 𝑛 = 50, 𝑧0.025 = 1.96
20 20
95% C.I. for μ = (345 − 1.96 , 345 + 1.96 ) = (339.4563, 350.5437) mL
√50 √50

(b) For the estimation of the population mean volume of milk in a bottle
𝜎 = 20, 𝑛 = 100, 𝑧0.025 = 1.96
20
Sampling error at 95% confidence level = 1.96 = 3.92 𝑚𝐿
√100

6.
(a) For the estimation of the population mean spending by a customer on visiting salon per month
𝑥̅ = 840, 𝜎 = 220, 𝑛 = 55, 𝑧0.05 = 1.645
220 220
95% C.I. for μ = (840 − 1.645 , 840 + 1.645 ) = $ (791.20, 888.80)
√55 √55

(b) For the estimation of the population mean spending by a customer on visiting salon per month
𝜎 = 220, 𝑛 = 120, 𝑧0.05 = 1.645
220
Sampling error at 95% confidence level = 1.645 = $ 33.04
√120

7. For the estimation of the population mean length of a metal wire

σ = 3, z0.005 = 2.575
3
(a) with n = 30, sampling error = 2.575 = 1.4104 cm
√30

3
(b) with n = 50, sampling error = 2.575 = 1.0925 cm
√50

3
(c) with n = 100, sampling error = 2.575 = 0.7725 cm
√100

8. For the estimation of the population mean length of a metal wire

σ = 3, z0.005 = 2.575
To control the sampling error at 99% confidence level  1cm,
3
2.575 ≤ 1,
√n

n ≥ 59.68
So, the sample size should be at least 60.

36
 ES 2020-21

9. For the estimation of the population mean population mean spending a customer is willing to
spend for a cruise tour
σ =900, z0.025 = 1.96,
To control the sampling error at 95% confidence level  $75
900
1.96 ≤ 75,
√n

𝑛 ≥ 553.19
So, the sample size should be at least 554.

10.
83+58+⋯+108
(a) sample mean 𝑥̅ = = 75.6923 hours
13

(83−75.6923)2 +(58−75.6923)2 +⋯+(108−75.6923)2

sample standard deviation = 𝑠 = √ 13−1

= 14.5395 hours
(b) For the estimation of the population mean monthly working hours of a part-time worker
𝑥̅ = 75.6923, s = 14.5395, n = 13, d.f. = 12, t(12, 0.025) = 2.179
14.5395 14.5395
95% C.I. for μ = (75.6923 − 2.179 , 75.6923 + 2.179 )
√13 √13

= (66.9054, 84.4792) hours

11.
82+66+⋯+91
(a) sample mean 𝑥̅ = = 86 hours
10

(82−86)2 +(66−86)2 +⋯+(91−86)2

sample standard deviation = s = √ = 11.8415 hours
10−1

(b) For the estimation of the population mean number of hours spends on watching television per
week
𝑥̅ = 86, 𝑠 = 11.8415, 𝑛 = 10, 𝑑. 𝑓. = 9, t (9,0.05) = 1.833
11.8415 11.8415
90% C.I. for μ = (86 − 1.833 , 86 + 1.833 ) = (79.1361, 92.8639) hours
√10 √10

12. For the estimation of the population mean number of hours a student spends in the public library
in a week
𝑥̅ = 6.87, 𝑠 = 1.76, 𝑛 = 20, 𝑑. 𝑓. = 19, t (19,0.025) = 2.093
1.76 1.76
95% C.I. for μ = (6.87 − 2.093 , 6.87 + 2.093 ) = (6.0463, 7.6937) hours
√20 √20

37
 ES 2020-21

13. For the estimation of population mean marks in this examination.

𝑥̅ = 415.75, 𝑠 = 61.3516, 𝑛 = 12, 𝑑. 𝑓. = 11, t (11,0.025) = 2.201

61.3516
95% C.I. for μ = ( 415.75  2.201  ) = (376.7688, 454.7312) marks
12

14. For the estimation of population proportion of household with a personal computer
290
(a) point estimate = = 0.7632
380

(b) n = 380, 𝑝̂ = 0.7632, z0.025 = 1.96

0.7632(0.2368)
Sampling error at 95% confidence level = 1.96√ = 0.0427
380

0.7632(0.2368) 0.7632(0.2368)
(c) 95% C.I. for p = (0.7632 − 1.96√ , 0.7632 + 1.96√ )
380 380

= (0.7205, 0.8059)

15. For the estimation of the population proportion of resident supporting Mike to be the next
president
220
(a) point estimate = = 0.3667
600

(b) n = 600, 𝑝̂ = 0.3667, z0.005 = 2.575

0.3667(0.6333)
Sampling error at 99% confidence level = 2.575√ = 0.0507
600

0.3667(0.6333) 0.3667(0.6333)
(c) 99% C.I. for p = (0.3667 − 2.575√ , 0.3667 + 2.575√ )
600 600

= (0.3160, 0.4174)

16. For the estimation of the population proportion of “Benz” in the building
n = 200, 𝑝̂ = 0.085, z0.05 = 1.645
17
point estimate of p = = 0.085
200

0.085(0.915)
Sampling error at 90% confidence level = 1.645√ = 0.0324
200

0.085(0.915) 0.085(0.915)
90% C.I. for p = (0.085 − 1.645√ , 0.085 + 1.645√ )
200 200

= (0.052, 0.118)

38
 ES 2020-21

17.
(a) For the estimation of the population proportion of boys preferring brand A chips
66
n = 140, 𝑝̂ = = 0.4714, z0.05 = 1.645
140

0.4714(0.5286) 0.4714(0.5286)
90% C.I. for p = (0.4714 − 1.645√ , 0.4714 + 1.645√ )
140 140

= (0.4020, 0.5408)
(b) For the estimation of the population proportion of girls preferring brand A chips
110
n = 180, 𝑝̂ = = 0.6111, z0.05 = 1.645
180

0.6111(0.3889) 0.6111(0.3889)
90% C.I. for p = (0.6111 − 1.645√ , 0.6111 + 1.645√ )
180 180

= (0.5513, 0.6709)
(c) Sampling error at 90% confidence level for population proportion of boys preferring brand A
0.4714(0.5286)
chips = 1.645√ = 0.0694
140

Sampling error at 90% confidence level for population proportion of girls preferring brand A
0.6111(0.3889)
chips = 1.645√ = 0.0598
180

Estimation for population proportion of boys perferring brand A chips has larger sampling error
at 90% confidence level.

18.
(a) For the estimation of the population proportion of customers who are satisfied with the service
168
p̂ = = 0.56, n = 300, z0.01 = 2.33
300
0.56  (1 − 0.56 ) 0.56  (1 − 0.56 )
98% C.I. for p = (0.56 − 2.33  , 0.56 + 2.33  )
300 300
= (0.4932, 0.6268)
(b) For the estimation of the population mean spending on one visit to the shop
𝑥̅ = 820, s = 165, n = 300, d.f.= 299, t(299, 0.01)= 2.326
165 165
98% C.I. for μ = (820 – 2.326× , 820 + 2.326× ) = $ (797.84, 842.16)
√300 √300

39
 ES 2020-21

19.
(a) 𝑥̅ = 69.8333 marks (from calculator)
s = 9.2916 marks (from calculator)

(b) For the estimation of the population mean mark of “General Mathematics”
𝑥̅ = 69.8333, s = 9.2916, n = 12, d.f. = 11, t(11, 0.025)= 2.201
9.2916 9.2916
95% C.I. for μ = (69.8333 − 2.201 , 69.8333 + 2.201 )
√12 √12

= (63.9297, 75.7369) marks

(c) For the estimation of the population mean mark of “General Mathematics”
𝑥̅ = 70, s = 9.4, n = 36, d.f. = 35, t(35, 0.025) = 1.96

9.4
Sampling error at 95% confidence level = 1.96 =3.0707 marks
36

20.
(ai) For the estimation of the population mean weight of a melon
n = 120, 𝑥̅ = 4, 𝜎 = 0.9, z0.025 = 1.96,
0.9 0.9
95% CI for μ = (4 − 1.96 , 4 + 1.96 ) = (3.8390, 4.1610) kg
√120 √120

(aii) To control the sampling error ≤ 0.1

0.9
1.96 ≤ 0.1
√𝑛
n ≥ 311.1696
So, the sample size must be at least 312
(b) For the estimation of the population proportion of melons which weigh heavier than 4.2 kg
30
n = 200, 𝑝̂ = = 0.15, z0.05 = 1.645
200

0.15(0.85) 0.15(0.85)
90% CI for p = (0.15 − 1.645√ , 0.15 + 1.645√ ) = (0.1085, 0.1915) kg
200 200

40
 ES 2020-21

Chapter 5 Time Series

1.
(a) There is a slightly downward trend. Within a year, the sales in Quarter 1 is the best. It drops
significantly in Quarter 2, and then gradually improve in Quarter 3 and Quarter 4.

(b)
Quarter Original 4-period
data y Moving
Average
2017 1 471
2 389
3 405 425 423.875
4 435 422.75 420.125
2018 1 462 417.5 416.25
2 368 415 414.125
3 395
413.25 411.5
409.75
4 428 411.5
413.25
2019 1 448 414.125
415
2 382 412.875
410.75
3 402
4 411

(c)
Quarter Original 4-period y-t
data y Moving
Average
2017 3 405 423.875 -18.875
4 435 420.125 14.875
2018 1 462 416.25 45.75
2 368 414.125 -46.125
3 395 411.5 -16.5
4 428 411.5 16.5
2019 1 448 414.125 33.875
2 382 412.875 -30.875

41
 ES 2020-21

Quarter Average of y – t Adjustment Seasonal

Factor

1 45.75 + 33.875 0.1719 39.9844

= 39.8125
2
2 −46.125 − 30.875 0.1719 -38.3281
= −38.5
2
3 −18.875 − 16.5 0.1719 -17.5156
= −17.6875
2
4 14.875 + 16.5 0.1719 15.8594
= 15.6875
2

Checking if the total of average y – t is zero:

39.8125 – 38.5 – 17.6875 + 15.6875 = -0.6875 ≠ 0

−0.6875
Adjustment = -( ) = 0.1719
4

2.
(a) The sales of women’s footwear has a downward trend. The sales in Quarter 1 is the best,
followed by Quarter 2, then Quarter 3. The sales in Quarter 4 is the worst within a year.

(b)
Quarter Original 4-period
data y Moving
Average
2015 1 18.9
2 17.5
3 16.1 16.95 16.8125
4 15.3
16.675 16.4625
16.25
2016 1 17.8 16.025
15.8
2 15.8 15.6125
15.425
3 14.3 15.225
15.025
4 13.8 14.7 14.8625
2017 1 16.2 14.4 14.55
2 14.5 14 14.2
3 13.1
4 12.2

42
 ES 2020-21

(c)
Quarter Original 4-period y-t
data y Moving
Average
2015 3 16.1 16.8125 -0.7125
4 15.3 16.4625 -1.1625
2016 1 17.8 16.025 1.775
2 15.8 15.6125 0.1875
3 14.3 15.225 -0.925
4 13.8 14.8625 -1.0625
2017 1 16.2 14.55 1.65
2 14.5 14.2 0.3

Quarter Average of y – t Adjustment Seasonal

Factor

1 1.775 + 1.65 -0.0063 1.7062

= 1.7125
2
2 0.1875 + 0.3 -0.0063 0.2375
= 0.2438
2
3 −0.7125 − 0.925 -0.0063 -0.8251
= −0.8188
2
4 −1.1625 − 1.0625 -0.0063 -1.1188
= −1.1125
2

Checking if the total of average y – t is zero:

1.7125 + 0.2438 -0.8188 – 1.1125 = 0.025 ≠ 0

0.025
Adjustment = -( ) = -0.0063
4

43
 ES 2020-21

3.
(a) The number of telephone calls received has an upward trend. There are less calls received on
Mondays and more calls are received on Fridays.

(b)
5-point
Original
moving
data
average
Week 1 Monday 4
Week 1 Tuesday 7
Week 1 Wednesday 8 9.6
Week 1 Thursday 11 9.4
Week 1 Friday 18 9.6
Week 2 Monday 3 10
Week 2 Tuesday 8 10.4
Week 2 Wednesday 10 11
Week 2 Thursday 13 11.6
Week 2 Friday 21 11.8
Week 3 Monday 6 12.4
Week 3 Tuesday 9 13.2
Week 3 Wednesday 13 14.6
Week 3 Thursday 17
Week 3 Friday 28
(c)

5-point y–t
Original
moving
data
average
Week 1 Wednesday 8 9.6 -1.6
Week 1 Thursday 11 9.4 1.6
Week 1 Friday 18 9.6 8.4
Week 2 Monday 3 10 -7
Week 2 Tuesday 8 10.4 -2.4
Week 2 Wednesday 10 11 -1
Week 2 Thursday 13 11.6 1.4
Week 2 Friday 21 11.8 9.2
Week 3 Monday 6 12.4 -6.4
Week 3 Tuesday 9 13.2 -4.2
Week 3 Wednesday 13 14.6 -1.6

44
 ES 2020-21

Day Average of y – t Adjustment Seasonal

Factor

Monday −7 − 6.4 0.22 -6.48

= −6.7
2
Tuesday −2.4 − 4.2 0.22 -3.08
= −3.3
2
Wednesday −1.6 − 1 − 1.6 0.22 -1.18
= −1.4
3
Thursday 1.6 + 1.4 0.22 1.72
= 1.5
2
Friday 8.4 + 9.2 0.22 9.02
= 8.8
2

Checking if the total of average y – t is zero:

-6.7 - 3.3 - 1.4 + 1.5 + 8.8 = -1.1 ≠ 0

−1.1
Adjustment = -( ) = 0.22
5

45
 ES 2020-21

Chapter 6 Price Index

24(60)+1.1(80)+3.3(30)
1. PIL (2018) = × 100 = 95.6496
25(60)+1.2(80)+3.5(30)

22(60)+1.2(80)+3.0(30)
PIL (2019) = × 100 = 88.5362
25(60)+1.2(80)+3.5(30)

The price level decreases by 4.35% from 2017 to 2018 and it decreases by 11.46% from 2017 to
2019.

300(25)+145(75)+130(75)+70(60)
2. PIP (2012) = × 100 = 117.3321
250(25)+120(75)+100(75)+80(60)

330(18)+155(70)+180(60)+65(70)
PIP (2013) = × 100 = 131.1837
250(18)+120(70)+100(60)+80(70)

The price level increases by 17.33% from 2011 to 2012 and it increases by 31.18% from 2011 to
2013.

26(60)+130(80)+28(30)
3. PIL (2016) = × 100 = 105.3498
25(60)+120(80)+35(30)

22(60)+135(80)+25(30)
PIL (2017) = × 100 = 105.9259
25(60)+120(80)+35(30)

26(50)+130(60)+28(20)
PIP (2016) = × 100 = 105.5738
25(50)+120(60)+35(20)

22(30)+135(65)+25(15)
PIP (2017) = × 100 = 108.0992
25(30)+120(65)+35(15)

135(100)+145(80)+275(50)
4. PIL (2012) = × 100 = 108.8235
120(100)+140(80)+250(50)

140(100)+155(80)+280(50)
PIL (2013) = × 100 = 113.1653
120(100)+140(80)+250(50)

150(100)+165(80)+270(50)
PIL (2014) = × 100 = 116.8067
120(100)+140(80)+250(50)

The price level increases by 8.82% from 2011 to 2012, it increases by 13.17% from 2011 to
2013 and it increases by 16.81% from 2011 to 2014.

46
 ES 2020-21

120(90)+120(60)+80(85)+45(70)
5. PIP (2016) = × 100 = 123.9468
100(90)+80(60)+70(85)+40(70)

130(85)+140(50)+85(95)+55(80)
PIP (2017) = × 100 = 136.5772
100(85)+80(50)+70(95)+40(80)

The price level increases by 23.95% from 2015 to 2016, and it increases by 36.58% from 2015
to 2017.

6.
52 27 17 90
(a) CPI in 2016 = 0.4(50 × 100) + 0.25 (25 × 100) + 0.2(15 × 100) + 0.15(100 × 100)

= 104.7667
55 30 20 85
CPI in 2017 = 0.4(50 × 100) + 0.25 (25 × 100) + 0.2(15 × 100) + 0.15(100 × 100)

= 113.4167
104.7667−100
(b) Percentage change in prices from 2015 to 2016 = × 100% = 4.77%
100

113.4167−104.7667
Percentage change in prices from 2016 to 2017 = × 100% = 8.26%
104.7667

7.
(a) There was price rise in Bread and Cereal, Milk and Eggs, Vegetables, and Fruits.
(b) There was price drop in Meat and Fish and Seafood.
84 110 192
(c) CPI (food at home) in 2011 = 0.2(80 × 100) + 0.15(120 × 100) + 0.25(200 × 100)

42 66 75
+ 0.1(40 × 100) + 0.2(60 × 100) + 0.1(70 × 100) = 101.9643

87 102 181
CPI (food at home) in 2012 = 0.2(80 × 100) + 0.15(120 × 100) + 0.25(200 × 100)

44 68 77
+ 0.1(40 × 100) + 0.2(60 × 100) + 0.1(70 × 100) = 101.7917

101.9643−100
(d) Percentage change in prices from 2011 to 2012 = × 100% = 1.96%
100

101.7917−101.9643
Percentage change in prices from 2012 to 2013 = × 100% = −0.17%
101.9643

47
 ES 2020-21

60 88 33 32
8. CPI in 2011 = 0.148(50 × 100) + 0.42(80 × 100) + 0.037(30 × 100) + 0.167(35 × 100)

35 12 110 52
+ 0.065(25 × 100) + 0.064(10 × 100) + 0.064(100 × 100) + 0.035(50 × 100)

= 110.7586
68 92 34 30
CPI in 2012 = 0.148(50 × 100) + 0.42(80 × 100) + 0.037(30 × 100) + 0.167(35 × 100)

40 15 110 55
+ 0.065(25 × 100) + 0.064(10 × 100) + 0.064(100 × 100) + 0.035(50 × 100)

= 117.8256

9.
(a) City A experienced deflation from 2010 to 2013.
(b) Percentage change in prices from 2012 to 2013 for

96.3−96.9
City A = × 100% = -0.62%
96.9

110−108
City B = × 100% = 1.85%
108

128−118
City C = × 100% = 8.47%
118

(b) City C experienced the highest percentage rise (8.47%) in prices from 2012 to 2013.

10.
(a) Percentage change in prices from 2011 to 2014 for

120−104
Food = × 100% = 15.38%
104

95.5−99
Transportation = × 100% = -3.54%
99

90−97
Power = × 100% = -7.22%
97

106−101
Clothing = × 100% = 4.95%
101

(b) Category Food experienced the highest percentage rise (15.38%) in prices from 2011 to 2014.
(c) Category Power experienced the highest percentage drop (-7.22%) in prices from 2011 to 2014.

48