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COURSE: APPLIED STATISTICS FOR BUSINESS – CODE: MAS202

HOMEWORK ASSIGNMENT 2
Instructions
• Write your solution use your handwriting.
• Your assignment paper must have student’s name, ID and class information; and
mention lecturer’s name: PhD. Pham Thanh Hieu
• You MUST scan your paper into pdf file and submit only ONE file including all of
your answer.
• Must have page numbers in the bottom of each page.
• If students have exactly (100%) the same answer, I MUST doubt that this is a copy
and paste work. These students will be scored by half of what they got in the
overall.
• Deadline for submission: Thursday, March 3, 2022. Late submission is not
accepted.
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Go to next pages to find questions for your assignment

1
Question 1 (20 points): According to the same Glassdoor source mentioned in Problem
6.40, the mean monthly pay for interns at Facebook is $6,589. Suppose that the intern
monthly pay is normally distributed, with a standard deviation of $500. What is the
probability that the monthly pay of an intern at Facebook is
a. between $5,700 and $6,100?
b. above $6,500?
c. Ninety-nine percent of the intern monthly pays are higher than what value?
d. Ninety-five percent of the intern monthly pays are between what two values,
symmetrically distributed around the mean?

Question 2 (20 points): The amount of tea leaves in a can from a production line is
normally distributed with  = 110 grams and  = 25 grams. A sample of 25 cans is to be
selected.
a. What is the probability that the sample mean will be between 100 and 120 grams?
b. 95% of all sample means will be greater than how many grams?

Question 3 (20 points): A national association devoted to HR and workplace programs,


practices, and training wants to study HR department practices and employee turnover
of its member organizations. HR professionals and organization executives focus on
turnover not only because it has significant cost implications but also because it affects
overall business performance. A survey is designed to estimate the proportion of member
organizations that have both talent and development programs in place to drive human-
capital management as well as the member organizations’ mean annual employee
turnover cost (cost to fill a frontline employee position left vacant due to turnover).
A random sample of 100 member organizations reveals the following:
• Frontline employee turnover cost: 𝑋̅ = $12,500, S = $1,000.
• Thirty member organizations have both talent and development programs in place
to drive human-capital management.
a. Construct a 95% confidence interval estimate for the population mean frontline
employee turnover cost of member organizations.
b. Construct a 95% confidence interval estimate for the population proportion of member
organizations that have both talent and development programs in place to drive human-
capital management.
c. What sample size is needed to have 99% confidence of estimating the population mean
frontline employee turnover cost to within ± $250?

Question 4 (20 points): IAB conducted a study of 821 U.S. adults to understand the
behavioral shift of consumers’ TV viewing experience. The study found that 460 of U.S.
adults own streaming enabled TVs, including smart TVs and video streaming devices.
Source: The Changing TV Experience: 2017, available at bit.ly/2sz4Mal.

2
The authors of the report imply that the survey proves that more than half of all U.S.
adults own streaming enabled TVs, including smart TVs and video streaming devices.
a. Use the five-step p-value approach to hypothesis testing and a 0.05 level of significance
to try to prove that more than half of all U.S. adults own streaming enabled TVs, including
smart TVs and video streaming devices.
b. Based on your result in (a), is the claim implied by the authors valid?

Question 5 (20 points): Call centers today play an important role in managing day-to-day
business communications with customers. It’s important, therefore, to monitor a
comprehensive set of metrics, which can help businesses understand the overall
performance of a call center. One key metric for measuring overall call center
performance is service level which is defined as the percentage of calls answered by a
human agent within a specified number of seconds. The file ServiceLevel contains the
following data for time, in seconds, to answer 20 incoming calls to a financial services call
center:
16 14 16 19 6 14 15 5 16 18 17 22 6 18 10 15 12 6 19 16

a. At the 0.05 level of significance, is there evidence that the population mean time to
answer calls is less than 20 seconds?
b. What assumption about the population distribution is needed in order to conduct the
t test in (a)?
c. Construct a normal probability plot to evaluate the assumption made in (b). Do you
think that the assumption needed in order to conduct the t test in (a) is valid? Explain.
d. Find p-value for the hypothesis test in part (a).

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Total score: 100 points

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