Revision Exercises ( Part 1)

1. An editor of a publishing company claims that the mean time to write a textbook is less than
15 months. A sample of 16 textbook is randomly selected and is found that the mean time
was 12.5 and standard deviation was 3.6 months. Assume the time to write a textbook is
normally distributed.
i. At 0.025 level of significance, would you conclude that the editor’s claim is true?
ii. Find the p-value for the test.
2. Suppose the mean annual salary for an engineer is believed to be RM71,650. A sample of 16
engineers revealed a mean annual salary of RM73,800 and standard deviation of RM5000.
i. Can it be concluded that the average annual salary has increased using a 0.05level of
significance.
ii. Find the p-value of the test.
3. A production line operates with a mean filling weight of 16liters per container. A quality
control inspector samples 30 items to determine whether or not the filling weight has to be
adjusted. The sample revealed a mean of 16.32 liters and standard deviation was equal to
0.8 liters.

i. Using 0.10 level of significance, can it be concluded that the process is out of
control?
ii. Find a 90% two-sided confidence interval.
4. An insurance company offers policyholders various types of different premium payment
options. For a randomly selected policyholder, let X be the number of months between
successive payments. The cumulative distribution function, cdf of X is as follows:
 0, x 1
0.30, 1  x  3

0.40, 3  x  4
F ( x) = 
0.45, 4  x  6
0.60, 6  x  12

 1, x  12.

i. Determine the probability distribution function, f(x).

ii. Find the expectation and standard deviation of X.
iii. Use the given cdf to compute P(3  X  6) .
5. Bits are transmitted through a digital transmission channel. The probability of receiving these
transmitted bits, in error, is 0.1. Assume that the transmission trials are independent

i. Let X be the number of bits received in error, in the next 6 bits transmitted. Determine
the probability that X is not more than 2.
ii. Let Y be the number of bits received in error, in the next 900 bits transmitted.
Approximate the probability that the number of bits received in error is at least 106.
6. The minimum time taken for a data collection operator to fill up an electronic form for a
database is 7 minutes. Records have shown that the time taken is normally distributed with a
mean of 8 minutes and a standard deviation of 2.5 minutes. Assume that the time taken to fill
up the forms are independent.

i. Determine the appropriate distribution of the average time taken to fill up ten
randomly electronic forms.
ii. Find the probability that the average time taken to fill up the ten forms meets the
requirement of minimum time.
iii. Determine the requirement of minimum time such that the probability of sample
mean meeting this requirement is 95%.