ASSIGNMENT

1. During a socio-economic survey conducted in a rural area, the concerned authorities

came to the conclusion that mean level of income in the area was Rs 150 per month with
a standard deviation of Rs 20 and that income is approximately normally distributed. The
total population of the area was 4000. Compute the number of people who fell into the
following categories:
(i) monthly income less than Rs 125 [423]

(ii) monthly income greater than Rs 100 but less than or equal to Rs 150. [1975]
(iii) monthly income greater than Rs 200. [25]

2. The demand of a product is approximately normally distributed with an average demand

of 300 units per month. The probability of demand being less than 280 units is 0.025.
What is the probability that demand is more than 315 units? [0.07078]

3. Approximately 30% of the time demand of a product is more than 250 units, and 20% of
the time demand is less than 200 units. What is the average demand? What is the
standard deviation of demand? (Demand can be assumed to follow a normal distribution)
[Ans. 230.8, 36.23]
4. The demand of a product is observed to vary from one quarter to the other. The
demand of each quarter can be assumed to follow a normal distribution with
means and standard deviations given below:
Demand
Quarter Mean Standard
Deviation
1 300 10
2 250 10
3 400 13
4 450 15
What is the probability that the annual demand will be more than 1450 units? Demands
in the four quarters are independent. [0.02018]

5. What should be the standard deviation of a bolt-making machine if 94% of the bolt
lengths are to be in an interval extending from 0.0047 m.m. to the left of the mean to
0.0047 to the right of the mean.
6. [Ans: 0.0025]

7. The average time before the gear train of an automobile needs a major overhaul is 56
months with standard deviation of 16 months. The manufacturer wishes to warranty
these gear trains. For how many months should the manufacturer warrant gear trains to
limit the number of warranty overhauls to no more than 2.28% of the automobiles sold?
Assume normal distribution for number of months before an overhaul is required.
[Ans: 24]

8. The average marks secured by PGP-I students in Section ‘A’ in QAM-I course was 80
and the coefficient of variation was 5%. If the top 2% of the students registered for the
 course are to receive A+ grade, then what is the minimum mark a student must get in
order to receive A+ grade? [Ans: 88.24]
Contd. . . . 2

8. Suppose taxicab arrivals from 3 to 5 p.m. follow a Poisson process. If the cabs arrive at
an average rate of 18 per hour, (a) what is the probability that a person will have to wait
up to 5 minutes for cab? (b) What is the probability that a person will have to wait
between 5 and 10 minutes for cab?
[Ans: 0.7769; 0.173]

9. An investment manager receives an average of 12 telephone calls per 8-hour day from
major investors. Assuming calls are a Poisson process, what is the probability that the
manager will not be interrupted by a call during a meeting lasting one hour?
[Ans:
0.2231]

10. The average number of customers arriving in a supermarket is 30 per hour. What is the
probability that the length of time between a pair of successive arrivals of customers
exceeds 3 minutes? [Ans: 0.2231]

****
 ASSIGNMENT

1. The cylinder-making machine has standard deviation of 0.5 m.m. Assuming

diameters are normally distributed, determine the process mean such that only
2.5% of the cylinders have diameters of 25.48 m.m. or more?
[Ans: 24.5 m.m.]
2.. The length of time between breakdowns of an essential piece of equipment is an
important factor in deciding on the amount of auxiliary equipment needed to
assure continuous service. A machine room foreman believes the time between
breakdowns of a particular electrical generator is approximated by an exponential
distribution with mean equal to 10 days.
(i) If the generator broke down today, what is the probability that it will
break down again within the next 14 days?

[Ans:0.753]
(ii) What is the probability that generator will operate for more than 20
days without a breakdown?

[Ans:0.135]
3. Suppose taxicab arrivals from 3 to 5 p.m. follow a Poisson process. If the cabs arrive at
an average rate of 18 per hour, (a) what is the probability that a person will have to wait
up to 5 minutes for cab? (b) What is the probability that a person will have to wait
between 5 and 10 minutes for cab?
[Ans:0.7769; 0.173]

4. An investment manager for UTI receives an average of 12 telephone calls per 8-hour day
from major investors. Assuming calls are a Poisson process, what is the probability that
the manager will not be interrupted by a call during a meeting lasting one hour?
[Ans:
0.2231]

5. The average number of customers arriving in a supermarket is 30 per hour. What is the
probability that the length of time between a pair of successive arrivals of customers
exceeds 3 minutes? [Ans: 0.2231]

9. During a socio-economic survey conducted in a rural area, the concerned authorities

came to the conclusion that mean level of income in the area was Rs 150 per month with
a standard deviation of Rs 20 and that income is approximately normally distributed. The
total population of the area was 4000. Compute the number of people who fell into the
following categories:
(i) monthly income less than Rs 50
(ii) monthly income greater than Rs 100 but less than or equal to rs 150, and,
(iii) monthly income greater than Rs 250.

10. The demand of a product is approximately normally distributed with an average demand
of 300 units per month. The probability of demand being less than 280 units is 0.025.
What is the probability that demand is more than 315 units?
11. Approximately 30% of the time demand of a product is more than 250 units, and 20% of
the time demand is less than 200 units. What is the average demand? What is the
standard deviation of demand? (Demand can be assumed to follow a normal distribution)
[Ans. 230.8, 36.8]