Review for final exam

Problem 1: The average starting salary of this year’s graduates of a large university is
$25,000 with a standard deviation of $5,000. Furthermore, it is known that the
starting salaries are normally distributed.

a/ What is the probability that a randomly selected graduate of the large university
will have a starting salary of at least $31,000? ANS: 0.1151.

b/ Individuals with starting salaries of less than $12,200 receive a low-income tax
break. What percentage of the graduates will receive the tax break?ANS: 0.52

c/ Determine the minimum salary of 5% of the highest starting salaries.

ANS:

Problem 2: The average life expectancy of computers produced by Ahmadi, Inc. is 6

years with a standard deviation of 10 months. Assume that the lives of computers
are normally distributed. Suggestion: For this problem, convert ALL of the units
to months.
a/ What is the probability that a randomly selected computer will have a life
expectancy of at least 7 years? ANS: 0.1151.

b/ Computers that are less than 5.5 years will be replaced free of charge. What
percentage of computers are expected to be replaced free of charge?

ANS: 27.43%.

Problem 3: A new car battery is sold with a two-year warranty whereby the owner gets
the battery replaced free of cost if it breaks down during the warranty period.
Suppose an auto store makes a net profit of $20 on batteries that stay trouble-free
during the warranty period; it makes a net loss of $10 on batteries that break down.
The life of batteries is known to be normally distributed with a mean and a
standard deviation of 40 and 16 months, respectively.
a/ What is the probability that a battery will break down during the warranty
period?
b/ What is the expected profit of the auto store on a battery?
c/ What is the expected monthly profit on batteries if the auto store sells an
average of 500 batteries a month?

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Problem 4: A sample of 36 small bags of the same brand candies was selected. The
weight of each bag was recorded. The mean weight was two ounces with a
standard deviation of 0.12 ounces.
a/ Counstruct 95% confidence interval for the polulation mean weight of the bags
of candies. ANS:
b/ Counstruct 97% confidence interval for the polulation weight of the candies.
ANS:
c/ Compare the margins of error for parts (a) and (b). As the confidence
levels increase, do the confidence intervals increase in length?
d/ A reseacher wants to estimate the polulation mean of weight of candy bags with
the margin of error of 0.03 ounces.
How large a sample is required if using a 97% confidence and the population
standard deviation of 0.1 ounce? ANS: 53.

Chapter 6&7.
Problem 5:
A telephone poll of 1000 adult Americans was reported in an issue of Time
Magazine. One of the questions asked was “What is the main problem facing the
country ?”. Twenty percent answered “crime”.
We are in interested in the population proportion of adult Americans who feel that
crime is the main problem.
a/ Find a 95% confidence interval for the population proportion of adult
Americans who feel that crime is the main problem.

ANS: .
b/ With the 95% confidence level, what is the minimum sample size needed to
estimate the population proportion with a margin of error not exceeding 2%?
c/ We are interested in determining whether or not the proportion of adult
Americans who feel that crime is the main problem is significantly more than 15%.

At the level of significance of 10%, what is your conlusion?

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Problem 6: Last year, a soft drink manufacturer had 21% of the market. In order
to increase their portion of the market, the manufacturer has introduced a new
flavor in their soft drinks.
A sample of 400 individuals participated in the taste test and 100 indicated that
they like the taste. We are interested in determining if more than 21% of the
population will like the new soft drink.

At the level of significance of 5%, test if more than 21% of the population will
like the new soft drink.

Problem 7: Previously, an organization reported that teenagers mean spent 4.5

hours per week, on the phone. The organization thinks that, currently, the mean is
higher. Fifteen randomly chosen teenagers were asked how many hours per week
they spend on the phone. The sample mean was 4.75 hours with a sample standard
deviation of 2.0 hours.
We are interested in determing whether or not the mean amount of time per week
is significantly more than 4.5 hours per week. At 1% level of significance, what is
your conclusion?

Problems: (ANOVA)_Chapter 8:
Problem 8: A one-way ANOVA has been conducted for an experiment in which there
are three treatments (groups) and each treatment/group consists of 10 persons. The
results include the sum of squares terms shown here.

Source of Variation SS df MS F
Between Groups 252.1 ? ? ?
Within Groups 761.1 ? ?
Total ? ?

a/ Fill in the blanks in the ANOVA table.

b/ Using a level of significance of 2.5% for testing whether all of the population means
are the same.

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Problem 9: An analysis of variance experiment produced a portion of the ANOVA table:

Source of Variation SS df MS F
Between Groups 98.40 2 ? ?
Within Groups ? 7 ?
Total 152.40 9

a/ Fill in the missing statistics in the ANOVA table.

b/ Specify the null and alternative hypotheses in order to determine whether some
differences exist between the population means.
c/ At the 5% significance level, what is the conclusion to the test?

Problem 10: A toy manufacturer is assessing a new, longer-lasting small battery in

three popular toys – A, B, and C – each requiring a single battery. Fifteen
batteries are randomly assigned to the toys. Then each toy is run continuously and
the time to failure of the battery is recorded:

Toy A Toy B Toy C

18.0 17.6 16.0
18.1 18.2 16.3
19.2 19.8 17.1
19.4 20.9 17.7
21.7 22.3 18.9

It is known that time to failure for these batteries is likely to be normally

distributed. At the 0.05 level of significance, analyse the data to determine whether
there is a significant difference in the mean battery life between the toys. State the
null and alternative hypotheses.

End.

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