Unity University

Department of Management
Group Assignment on Course of Managerial statistics
 INSTRUCTION Give clear explanation and all necessary steps.
The Assignment should have cover page, Table of Contents
and References
1. Define Statistics and role of inferential statistics in business. Give appropriate
examples.
2. A Home Owners’ Association has determined that the average number of days a
house was in the market for sale was 90 days, before it was sold. A real estate agency
believes that in certain section of Long Island, the average number of days the houses
remained in the market before sales was less than 90. It selected a random sample of
10 homes that were sold in this section in order to justify what it believes. The
following data represents the number of days that each of these 10 homes stayed in
the market before sale? 87, 95, 78, 83, 110, 75, 82, 92, 90, 80 At 0.01 level of
confidence and assuming that population is approximately normal, is the real estate
agency justified in its belief?
3. According to one survey, it takes a mean of 330 minutes for taxpayers to
prepare, copy, and electronically file a tax form. This distribution of times
follows positively skewed distribution and the standard deviation is 80
minutes. Consumer watchdog agency selects a random sample of 40
taxpayers.
A. What is the mean and standard error of the sampling distributions of
sample means in this example?
B. What is the shape of the sampling distribution of the sample means?
C. What is the likelihood the sample mean is between 310 and 320
minutes?
D. The fastest 3% of the electronic tax reporting sample mean time is
below which time in minutes?
4. DHL makes deliveries of a large number of products to its customers.
Suppose it is known that 85% of all the orders it receives from its customers
are delivered on time. Suppose a random sample of 100 orders are selected;
A. What is the mean and standard error of the sampling distributions of
sample proportions in this example?
B. What is the shape of the sampling distribution of the sample
proportions?
C. What is the likelihood the sample proportion of orders delivered on
time will be less than 0.87?
D. The central 68.26% of the sample proportions are between which two
sample proportions?
5. A machine produces components, which have a standard deviation of 1.6 cm
in length. A random sample of 64 parts is selected from the output and this
sample has a mean length of 90 cm. The customer will reject the part if it is
either less than 88cm or more than 92cm.
A. Find the point estimate for the mean length of all components
produced.
B. Find out the 95% confidence interval for mean length of all
components produced.
C. Does the 95% confidence interval for the true mean length of all
the components produced ensure acceptance by the customer?
6. Suppose 1600 of 2000 union members sampled said they plan to vote for the
proposal to merge with a national union.
A. Find the point estimate for the proportion of union members that
approve the merger.
B. Develop the 98% confidence interval for the proportion of union
members that approve the merger.
C. Union bylaws state that at least 75% of all members must approve for
the merger to be enacted. Does the 98% confidence interval for the
proportion of union members that approve the merger ensure the
merger to be enacted?
7. A firm has appointed a large number of dealers all over the country to sell its
bicycle; it is interested in knowing the average sales per dealer. A random
sample of 25 dealers is selected for this purpose, the sample mean is birr
50,000 and sample standard deviation is 20,000. The population of sales is
approximately normal. Construct an interval estimate with 99 % confidence
level.
8. In a survey, 220 people out of 400, when asked to identify their major source
of news information, stated that their major source was television news. How
large a sample would be necessary to estimate the population proportion with
a margin of error of 0.05 at 95 percent confidence?
9. A hospital wants an estimate of the mean time that a doctor spends with each
patient in the OPD. How large a sample should be taken if the desired margin
of error is 2 minutes a t a 90 % confidence level, assuming a population
standard deviation of 8 minutes?
10.The manufacturer of the Horizon truck tire claims that the mean mileage the
tire can be driven before the tread wears out is 60,000 miles. Assume the
mileage wear follows the normal distribution and the standard deviation of
the distribution is 5,000 miles. Comet Truck Company bought 48 tires and
found that the mean mileage for its trucks is 59,500 miles. Is Comet’s
experience different from that claimed by the manufacturer at the .05
significance level?
Required: Use both the critical value method and p-value method to test the
hypothesis
11.A labor union claims “40% of those persons who retired from an industrial job
before the age of 60 would return to work if a suitable job were available” 74
persons out of the 200 sampled said they would return to work. Can we
conclude that the proportion returning to work is different from (either above
or below) 0.40?
Required: Test the hypothesis with 2% significance level.
12.Each patient at a hospital is asked to evaluate the service at the time of
discharge. Recently there have been several complaints that resident
physicians and nurses on the surgical wing respond too slowly to the
 emergency calls of senior citizens compared to other patient groups. The
administrator of the hospital asked the quality assurance department to
investigate. After studying the problem, the quality assurance department
collected the following sample information.

Patient type Smaple mean Sample Sample

standard deviation Size

Senor Citizens 5.5 Minutes 0.40 minuets 50

Other 5.3 Minutes 0.30 minutes 100

Required: At the 0.01 significance level, is the response time longer for the
senior citizens, emergencies?
A. Conduct hypothesis testing for the differences in the population means
based on the two independent samples.
B. What is the p-value in this problem? Interpret it.
13.A company is considering installing new machines to assemble its products. It
is considering two types of machines but it will buy only one type. It selected
8 assembly workers and asked them to use these two types of machines to
assemble products. The following table gives the time taken (in minutes) to
assemble one unit of the product on each type of machine for each of these 8
workers. Assume that the population of paired differences has a normal
distribution.
Machine I 23 26 19 24 26 22 20 18
Machine II 21 24 23 25 24 25 24 23
Required:
Conduct hypothesis test for the differences of the two population means
based on the paired observations of the dependent samples at 5%
significance level, if the mean time taken to assemble a unit of the product
is different for the two types of machines.

14. The personnel administrator of XYZ Company provided the following data as an
example of selection among 40 male and 40 female applicants for 12 open positions.
 Applicant Status

Selected Not selected Total

Male 7 33 40

Female 5 35 40

Total 12 68 80

a. The X2 test of independence was suggested as a way of determining if the decision to

hire 7 malls and females should be interpreted as having a selection bias in favor of
males. Conduct the test of independence using = 0.01. What is your conclusion?
b. Using the same test, would the decision to hire 8 malls and 4 females suggest concern
for a selection bias?
c. How many males could be hired for the 12 open positions before the procedure would
concern for a selection bias?

15.There are totally five sales associates at Nyala Motors. The five associates and
the number of cars they sold last week are:
Sales Associate Paulos Chuchu Jerry Tariku Fatiyah

Cars Sold 8 6 4 10 6

A. Develop sampling distribution of sample means by taking a sample of 2

sales associates randomly without replacement
B. Show how the mean of the sampling distribution of the sample means are
equal with that of the population mean.
C. Show how the standard deviation of the sampling distribution of the
sample means (standard error) is equal with that of the population
standard deviation divided by the square root of the random sample size.
N.B.: Use the finite population correction factor to adjust
D. For each sample listed, calculate the sampling error of the mean.
16.A company manufactured totally 6 television sets (A, B, C, D, E and F) on a
given day and these television sets were inspected for being good or
defective; results are as follows.
TV Sets A B C D E F
Inspection result Good Good Defective Defective Good Good

A. Develop sampling distribution of sample proportions by taking a sample of

5 TV sets randomly without replacement
B. Show how the mean of the sampling distribution of the sample proportions
are equal with that of the population proportion.
C. Show how the standard deviation of the sampling distribution of the
sample proportions (standard error) is equal with that of the square root
of the (population proportions (P & Q) multiplied divided by random
sample size). N.B.: Use the finite population correction factor to adjust
D. For each sample listed, calculate the sampling error of the proportion.