Practical 3

Q1. Calculate the area under the standard normal curve to the left of these values:
a. Z =1.6 b. Z = 1.83
c. Z = .90 d. Z = 4.18

Q2. Find the following probabilities for the standard normal random variable z:
a. P (-1.43 < Z < .68)
b. P (.58 < Z < 1.74)
c. P (-1.55< Z< - .44)
d. P (Z >1.34)
e. P (Z > - 4.32)

Q3. A normal random variable x has an unknown mean and standard deviation 2. If the
probability that x exceeds 7.5 is .8023, find unknown mean.

Q4. One method of arriving at economic forecasts is to use a consensus approach. A forecast is
obtained from each of a large number of analysts, and the average of these individual forecasts is
the consensus forecast. Suppose the individual 2008 January prime interest rate forecasts of
economic analysts are approximately normally distributed with the mean equal to 8.5% and a
standard deviation equal to 0.2%. If a single analyst is randomly selected from among this group,
what is the probability that the analyst’s forecast of the prime rate will take on these values?
a. Exceed 8.75%
b. Be less than 8.375%

Q5. Suppose that you must establish regulations concerning the maximum number of
people who can occupy an elevator. A study of elevator occupancies indicates that if
eight people occupy the elevator, the probability distribution of the total weight of the
eight people has a mean equal to 1200 pounds and a standard deviation of 99 pounds.
What is the probability that the total weight of eight people exceeds 1300 pounds? 1500
pounds? (Assume that the probability distribution is approximately normal.)

Q5. Find and interpret a 95% confidence interval for a population mean m for these values:
a. n = 36, x bar = 13.1, s2 = 3.42
b. n = 64, x bar = 2.73, s2 = .1047

Q6. A sample survey is designed to estimate the proportion of sports utility vehicles being driven
in the state of California. A random sample of 500 registrations are selected from a Department
of Motor Vehicles database, and 68 are classified as sports utility vehicles.
a. Use a 95% confidence interval to estimate the proportion of sports utility vehicles in
California.
b. How can you estimate the proportion of sports utility vehicles in California with a higher
degree of accuracy?