Business Statistics Communicating With Numbers 2nd Edition Jaggia Solutions Manual

Business Statistics Communicating
with Numbers 2nd Edition Jaggia

Solutions Manual
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Chapter 06 - Continuous Probability Distributions
Chapter 6. Continuous Probability

Distributions
Solutions
1.
a. ( ) ( )
b. ( ) ( )
c. ( ) ( ) ( )
2.
a. ( ) ( ) ( )
b. Since 4 is the upper bound, ( ) ( )
c. ( ) ( ) ( )
3.
a. ( ) ( )
b. ( ) ( ) ( )
c. ( ) ; The probability that a continuous random variable

assumes a particular value is 0.
4.
a. ( )
( ) ( )
b. √ √ √
c. ( ) ( )( )
5.
a. ( )
( )
6-1
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( ) ( ( ))
b. √ √
c. ( ) [ ( )]
6.
( )
a. √ √
b. ( ) ( ) ( )( )
c. ( ) ( )( )
7.
( )
a. √ √
b. ( ) ( ) ( )( )
8.
Let X represent the price of electricity in New England.
a. ( ) .
b. ( ) ( ) ( )
c. ( ) ( ) ( )
9.
Let X represent the arrival time of an elevator.
a. ( )
b. ( ) ( ) ( )( )
c. ( ) ( )
10.
Let X represent the height of a tulip.
6-2
( ) ( ) ( )( )
11.
Let X represent the arrival time for a daily flight from Boston to New York.
a. We first convert the time data to a minute scale. So, the interval from
9:15 am to 9:55am translates to an interval from 0 minutes to 40
minutes. Therefore
( )
√ √ 11.55, that is, 11.55 minutes.
b. In order to find the probability that a flight arrives late (later than
9:25am), we specify the problem in minutes as computing (
) We first find the probability density function:
( ) ( ) (
)( ) .
12.
Let X represent the date when the peach tree will bloom.
( )
a. ( ) ( )( )
b. ( ) ( )( )
13.
Let X represent the time when the assessor will arrive, and let the interval 0
to 2 represent 10:00am to 12:00pm.
( )
a. ( ) ( )( )
b. ( ) ( )( )
14.
a. ( ) ( )
b. ( )
6-3
c. ( ) ( ) ( )
d. ( ) ( ) ( )
15.
a. ( ) ( )
b. ( )
c. ( ) ( ) ( )
d. ( ) ( ) ( )
16.
a. ( ) ( ) ( )
b. ( ) ( ) ( )
c. ( ) ( )
d. ( ) ( ) ( )
17.
a.
b. ( ) ( )
c. ( ) ( )
d. ( ) ( )
18.
a.
6-4
b. ( ) ( )
c. ( ) ( )
d. ( ) ( )
( )
19.
Let X represent the return on the portfolio.
a. A return of 20% is one standard deviation above the mean (20 = 8 +

12). Since about 68.26% of the observations fall within one standard
deviation of the mean, half of 31.74% ( ‒ 68.26) = 15.87% of the
returns were greater than 20%.
b. A f ‒16% is two standard deviations b (‒ ‒

2×12). Since about 95.44% of the observations fall within two standard
deviations, half of 4.56% ( ‒ .44) = 2.28% of the returns were
below ‒16%.
20.
Let X represent the IQ score.
a. Since 84 and 116 represent plus or minus one standard deviation from
the mean, about 68.26% of people scored between 84 and 116.
b. An IQ score of 68 is two standard deviations below the mean (68 = 100

‒ ) S b 95.44% of the observations fall within two standard
deviations of the mean, half of 4.56% ( ‒ .44) = 2.28% of people
scored less than 68.
21.
Let X represent rent in a city.
a. Since $1,250 and $1,750 represent plus or minus one standard deviation
from the mean, about 68.26% of rents are between $1,250 and $1,750.
b. A rent of $1,250 is one standard deviation below the mean (1,250 =

1, ‒ ) Since about 68.26% of the observations fall within one
standard deviation of the mean, half of 31.74% ( ‒ .26) = 15.87%
6-5
of rents are below $1,250.
c. A rent of $2,000 is two standard deviations above the mean (2,000 =

1,500 + 2×250). Since 95% of the observations fall within two standard
deviations of the mean, half of 4.56% ( ‒ .44) = 2.28% of rents are
greater than $2,000.
22.
Let X equal points scored in a game.
a. Since 60 and 100 represent plus or minus two standard deviations from
the mean, about 95.44% of scores are between 60 and 100 points.
b. A score of 100 is two standard deviations above the mean (100 = 80 +

2×10). Since about 95.44% of the observations fall within two standard
deviations of the mean, half of 4.56% ( ‒ .44) = 2.28% of scores
are more than 100 points. If there are 82 games in the regular season,
we expect the team to score more than 100 points in approximately 2
games (82×0.0228 = 1.87).
23.
a. ( ) ( ) ( )
b. ( ) ( ) ( ) ( )
c. ( ) ( ) ( ) ( )
( )
d. ( ) ( ) ( )
( ) ( )
24.
a. ( ) ( ) ( )
b. ( ) ( ) ( ) ( )
6-6
c. ( ) ( ) ( )
( ) ( )
d. ( ) ( ) ( ) ( )
( )
25.
a. ( ) ( ) ( )
b. ( ) ( ) ( )
( ) ( )
c. Given ( ) , we find f
( )
d. Given ( ) ( ) f
Therefore,
( )
26.
a. ( ) ( ) ( ) ( )
b. ( ) ( ) ( )
( ) ( ))
c. Given ( ) ( ) f
T f
( )
d. ( ) ( ) ( ) ( )
( ) using
( )
27.
6-7
a. Given ( ) , we find f
( )
b. Given ( ) we find f
( )
c. ( ) ( ) ( ) ( )
( )
; using
( )
d. Given ( ) , we find f
( )
28.
a. ( ) ( )
b. ( )
c.
d.
29.
a. ( ) Excel command: ‘ NORM.DIST(266, 254, 11, 1)’
b. ( ) ( ) ( )
Excel command: ‘ NORM.DIST(270, 254, 11, 1) NORM.DIST(250, 254,

)’
c. ( )
Excel command: ‘=NORM.INV(0.33,254,11)’
d. ( ) ( )
Excel command: ‘ NORM.INV(0.67, 254, 11)’
30.
a. ( ) ( )
Excel command: ‘ 1 NORM.DIST( 12, 15,9,1)’
b. ( ) ( ) ( )
6-8
Excel command: ‘ NORM.DIST(5, 15, 9, 1) NORM.DIST(0, 15, 9, 1)’
c. ( )
Excel command: ‘=NORM.INV(0.25, 15, 9)’
d. ( ) ( )
Excel command: ‘ NORM.INV(0.75, 15,9)’
31.
Let X represent high-school teacher salary.
a. ( ) ( )
( )
( ) ( )
b. ( ) ( ) ( )
( )
32.
Let X represent sleep time on weekdays.
a. ( ) ( ) ( ) ( )
b. ( ) ( ) ( )
c. ( ) ( ) ( )
( ) ( )
33.
Let X represent the weight of a turkey.
a. ( ) ( ) ( )
( ) ( )
b. ( ) ( ) ( )
6-9
34.
Let X represent the mpg rating of passenger cars.
a. ( ) ( ) ( ) ( )
b. ( ) ( ) ( )
( ) ( )
c. Given ( ) we find . Therefore,

( )
35.
Let X represent the score of the entrance test.
Given ( ) we find Therefore, ( )
36.
Let X represent the return on a portfolio. If this return is normally
distributed, then
( ) ( ) ( )
However,
( ) ( ) ( ) ( )
Thus, it is not reasonable to assume the return is
normal.
37.
Let X represent the weights of the boxes.
Given ( ) we find Therefore,
( )
Given ( ) we find Therefore, ( )
Given ( ) we find Therefore,
( )
38.
For both distributions, let X represent the number of weeks to find a job.
a. ( ) ( ) ( ) ( )
6-10
b. ( ) ( ) ( ) ( )
c. ( ) ( ) ( )
( ) ( )
d. ( ) ( ) ( )
( ) ( )
39.
Let X represent the rate of seriously delinquent loans.
a. ( ) ( ) ( ) ( )
b. ( ) ( ) ( )
( ) ( )
40.
Let X represent the time required to assemble an electronic component.
a. ( ) ( ) ( )
( ) ( )
b. ( ) ( ) ( ) ( ) ( )
( )
41.
Let X represent the number of calls made per day.
a. ( ) ( ) ( )
( ) ( )
6-11
b. ( ) ( ) ( ) ( )
c. ( ) ( ) ( ) ( )
42.
Since µ = 25 = (22+28)/2, ( ) implies ( )=
0.975. From the z table we infer that ( ) implies We
then use the inverse transformation to solve for as
. Therefore,
43.
Let X represent the debt of a recent graduate student. First, find the
probability a randomly sampled recent graduate student has a debt of more
than $30,000.
( ) ( ) ( )
( ) Approximately, 14.23% of the 1.8
million students take on debt of more than $30,000 or
1,800,000*0.1423=256,140 students.
44.
Let X represent the score on a marketing exam.
a. ( ) ( ) ( )
( ) ( )
b. ( ) ( ) ( )
( ) ( )
c. ( ) ( ) S ( )
f
( ) 0
d. ( ) ( )
45.
Let X equal the talk time between charges of a cell phone.
6-12
a. ( ) ( ) ( )
b. ( ) ( ) ( ) ( )
( ) ( )
c. ( ) ( )
46.
( ) ( ) We first use this
cumulative probability to find the corresponding We then use
the inverse transformation to solve for as . Therefore,
47.
a. Let X represent the price of a condominium.
i. ( ) ( ) ( )
ii. ( ) ( ) ( )
( )
b. Let X represent the price of the artist's condo.
i. ( ) ( ) ( )
ii. ( ) ( ) ( )
( )
48.
Let X represent the return on a mutual fund.
a. f ( ) ( ) ( )
f ( ) ( ) ( )
6-13
You should pick the less risky fund because it gives you a lower
likelihood of earning a negative return (21.19% < 28.43%).
b. For the riskier fund: ( ) ( ) ( )
For the less risky fund: ( ) ( ) ( )

( )
You should pick the riskier fund because it gives you a higher likelihood
of earning a return above
8% (50% > 21.19%).
49.
Let X represent the daily consumption of beef (in pounds).
a. Given ( ) , we find = 0.84. Therefore, ( )
b. Given ( ) , we find = 1.64. Therefore, ( )
50.
Let X represent the life of the car battery (in months).
a. ( ) ( ) ( )
b. ( ) ( ) ( )
( )( ) ( )( )
c. ( ) ( ) ( )
51.
Let X represent the number of sunny days in a given year.
a. ( )
Excel command: ‘=NORM.DIST(200,211.7,20,1)’
b. ( ) ( )
Excel command: ‘ 1 NORM.DIST(266.5,211.7,20,1)’
c. ( )
Excel command: ‘ NORM.INV(0.1,211.7,20)’
d. ( )
6-14
Excel command: ‘ NORM.INV(0.99,211.7,20)’
52.
Let X represent the length of life of refrigerators.
a. ( )
Excel command: ‘ NORM.DIST(6.5,15,2,1)’
b. ( ) ( )
Excel command: ‘ 1 NORM.DIST(23,15,2,1)’
c. ( )
Excel command: ‘ NORM.INV(0.97,15,2)’
53.
a.
b.
( ) ( )
c.
54.
a.
b.
( ) ( ) ( ) ( ) ( )
c.
55.
a. ( ) ( )
( )
( ) ( ) ( )
b.
( ) ( ) ( ) ( )
c. ( )
( )
( )
56.
6-15
a. ( ) ( )
( )
( ) ( ) ( ) ( )
b. ( )
( )
( )
( ) ( ) ( ) ( )
c. ( )
( )
( )
57.
S ( ) ( )
58.
a. ( )
Excel command: ‘=EXPON.DIST(1,0.5,1)’
b. ( ) ( ) ( )
Excel command: ‘=EXPON.DIST(4,0.5,1) EXPON.DIST(2,0.5,1)’
c. ( ) ( )
Excel command: ‘=1 EXPON.DIST(10,0.5,1)’
59.
a. ( )
Excel command: ‘=EXPON.DIST(2.3,0.8,1)’
b. ( ) ( ) ( )
Excel command: ‘=EXPON.DIST(5.5,0.8,1) EXPON.DIST(1.5,0.8,1)’
c. ( ) ( )
60.
 2(3)  2 
Y  exp    54.60;  Y  (exp(2)  1) exp(2(3)  2)  19, 046
2
a.
 2 
6-16
 2(5)  2 
b. Y  exp    403.43;  Y  (exp(2)  1) exp(2(5)  2)  1, 039,849
2
 2 
 2(5)  3 
c. Y  exp    665.14;  Y  (exp(3)  1) exp(2(5)  3)  8, 443, 697
2
 2 
61.
 142   22 
a.   ln    2.5860;   ln 1  2   0.1064
2
 14  22 
2
 14 
  202  22 
b.   ln    2.9690;   ln 1  2   0.0535
2
 20  22 
2
 20 
 202   120 
c.   ln    2.8646;   ln 1  2   0.2624
2
 20  120 
2
 20 
62.
a. ( ) ( ( ) ( )) ( ) ( )
√
( )
b. ( ) ( ( ) ( ) ( )) ( )
( ) ( ) ( )
( )
c. ( ) ( ( ) ( )) ( )
( ) ( )
63.
 
82.82
First, we calculate   ln    4.41 and
 82.8  156.25 
2
 156.25 
 2  ln  1    0.0225
 82.82 
a. ( ) ( ( ) ( )) ( ) ( )
√
( ) ( )
6-17
b. ( ) ( ( ) ( ) ( )) (
) ( ) ( )
64.
Let X represent the time between eating mosquitoes.
a. ( ) ( )
( ) ( )
b.
( ) ( ) ( ) ( )
c.
( )
65.
Let X represent the time between complaints.
a. seconds
( )
b. ; ( )
( ) ( ) ( )
c.
66.
Let X represent the time between car arrivals.
a. (in hours)
( )
b. ( )
67.
Let X represent the time between customer purchases.
a. ( ) ( )
( )
b. No, Jack is wrong in his belief since a noted feature of the exponential
distribution is its memoryless. In this example, the probability that a
6-18
new customer arrives in the next five minutes is independent of whether

or not a customer has just been serviced.
( ) ( )
c.
( ) ( ) ( )
d.
68.
Let X represent the time drivers wait in line to pay the toll.
a. ( )
( ) ( ) ( )
b.
( ) ( ) ( )
c.
( ) ( ) ( ) ( )
d. ( ) (
( )
)
69.
Let X represent the time until the standby generator fails.
a.
( ) ( )
b. (( ) ( )) ( )
70.
Let X represent the time the state police wait for the next speeder.
a. ( ) (per
minute)
( ) Excel command: ‘=EXPON.DIST(10,0.1333,1)’
b. ( ) ( ) ( )
Excel command: ‘=EXPON.DIST(20,0.1333,1)

EXPON.DIST(15,0.1333,1)’
c. ( ) ( )
6-19
71.
Let X represent the next car’s arrival time;
a. ( )
Excel command: ‘=EXPON.DIST(1,2,1)’
b. ( ) ( )
Excel command: ‘=1 EXPON.DIST(5,2,1)’
72.
Let Y represent household income.
  Y2 
a.   ln   ( ) ( )
 2  2  √
 Y Y 
 2 
  ln 1  Y2  √ ( ( ))
 Y 
b. ( ) ( ( ) ( )) ( ) (
( )
) ( )
( )
c. ( ) ( ( ) ( )) ( )
( )
( )
73.
Let Y represent the life of a washing machine.
 2  2 
a.   ln   Y
( )   ln 1  Y2 
 2  2   Y 
√
 Y Y 
√ ( ( ))
b. ( ) ( ( ) ( )) ( ) (
( )
) ( )
6-20
( )
c. ( ) ( ( ) ( )) ( )
( ) ( )
74.
Let X represent the delivery time.
( )
a. ( )
b. ( ) ( ) ( )( ) . 25% of
deliveries are made after 4:00 pm.
c. ( ) ( )( ) . 37.5% of deliveries are made

prior to 2:30 pm.
75.
Let X represent the weight of a bag.
( )
a. ( ) √ √
b. ( ) ( ) ( )( )
c. ( ) ( )( )
76.
Let X represent diastolic (a) and systolic readings (b).
a. ( ) ( ) ( )
( ) ( )
b. (( ) ( ) (
) ( ) ( )
77.
Let X represent the amount spent annually on a debit card.
6-21
a. ( ) ( ) ( ) ( )
. The proportion of consumers who spend over
$8,000 is only about 0.34, which is not the majority.
b. ( ) ( )
c. ( ) ( )
d.
78.
Let X S ’ D
a. ( ) ( ) ( ) ( )
b. ( ) ( ) ( ) ( )
c. Women are slightly more likely to spend over $50, with a 3.14%
likelihood as opposed to 2.07% likelihood for men.
79.
Let X represent the number of customers signed up over a month.
a. ( ) ( ) ( ) ( )
b b b f ( % )
b. ( ) ( ) ( ) ( )
b b b f ( % )
c. At first glance, the results seem somewhat surprising. Brad, on average,

signs in more customers than Lisa (56 compared to 48), which would
make one think that he had a better chance of earning the bonus.
However, Lisa has a higher probability of earning the bonus because of
a higher standard deviation
(22 compared to 17).
6-22
80.
Let X represent the car speeds.
Given ( ) . Therefore, ( )
81.
Let X represent the household income.
Based on the symmetry of normal distributions, .

Therefore, it is not reasonable to use normal distribution to model the
household income in this community.
82.
Let X represent the length of the components.
Given ( ) . Therefore, ( )( )
Q2 = median = mean = 6
Given ( ) . Therefore, ( )
83.
Let x denote the minimum score to get admitted.
( ) Therefore, ( )
84.
Let X represent the time until the water filtration system fails.
a. ( ) ( ) ( )
b. The expected profit per one system is ( ) ( )

Therefore, the final answer is ( )
85.
Let X represent the IQ score.
a. ( ) Excel command: ‘=NORM.DIST(80,100,16,1)’
b. ( ) ( )
6-23
Excel command: NORM.DIST(125,100,16,1)’
c. ( )
Excel command: ‘ NORM.INV(0.975,100,16)’
86.
Let X represent the annual household income.
a. ( ) ( ) ( )
Excel command: ‘=NORM.DIST(65,000, 55,000, 4,500, 1)

NORM.DIST(50,000, 55,000, 4,500, 1)’
b. ( ) ( )
Excel command: ‘=1 NORM.DIST(70,000, 55,000, 4,500, 1)’
c. ( )
Excel command: ‘=NORM.INV(0.95, 55,000, 4,500)’
d. ( )
Excel command: ‘=NORM.INV(0.40, 55,000, 4,500)’
87.
Let X represent the time that elapses between successive speeders.
a. S ( ) (per minute)
( ) ( )
b.
( ) ( )
c. ( )
88.
Let X represent the time between successive violent crimes.
( ) ( )
a.
b. The probability will be the same because the exponential distribution

“ ” b b
independent of whether or not a violent crime occurred in the previous
minute.
6-24
89.
Let X represent the time between successive jobs sent to the printer.
a.
( ) ( )
b.
90.
Let X represent the number of days between successive car crashes.
a.
b.
( ) ( )
c.
91.
Let X represent the number of days between successive job applications.
a.
( ) ( )
b.
( ) ( ) ( ) ( ) ( )
c.
92.
Let X represent the mileage that a tire lasts.
( )
a. ( )
Excel command: ‘ EXPON.DIST(40,0.02,1)’
b. ( ) ( )
Excel command: ‘ 1 EXPON.DIST(65,0.02,1)’
c. ( ) ( ) ( )
Excel command: ‘ EXPON.DIST(80,0.02,1) EXPON.DIST(70,0.02,1)’
6-25
93.
Let X represent the number of years the appliance lasts.
( )
a. ( )
Excel command: ‘ EXPON.DIST(3,0.25,1)’
b. ( ) ( )
Excel command: ‘ 1 EXPON.DIST(6,0.25,1)’
94.
Let X represent the relief time.
a. ( ) ( ) ( )
  Y2    Y2 
b.   ln   ( )   ln 1  2 
 2  2   Y 
√
 Y Y 
√ ( ( ))
( ) ( ( ) ( )) ( )
( ) ( )
95.
Let Y represent the mileage.
  Y2    Y2 
a.   ln   ( )   ln 1  2 
 2  2   Y 
√
 Y Y 
√ ( ( ))
b. ( ) ( ( ) ( )) ( )
( ) ( )
Case Study 6.1
1. ( ) ( ) ( )
6-26
Healthy Weight: ( ) ( )
( ) ( ) ( )
Overweight: ( ) ( ) (
) ( ) ( )
Obese: ( ) ( ) ( )
2. The concern of the health officials is justified. As the following table shows,
34.30% of their 10-year boys are overweight and 12.51% are obese.
Weight Status Proportion of

Category Boys in town
Underweight 0.0274
Healthy Weight 0.5045
Overweight 0.3430
Obese 0.1251
Case Study 6.2
1. f ( ) ( ) ( )
f ( ) ( ) ( )
The Income fund is better for minimizing the probability of earning a
negative return.
2. f ( ) ( )
( )
( ) ( )
f ( ) ( )
( )
( ) ( )
The Income fund is better for maximizing the probability of earning a return
between 0 to 10%.
3. f ( ) ( ) ( )
( )
6-27
f ( ) ( ) ( )
( )
The Metals fund is better for maximizing the probability of earning a return
greater than 10%.
Case Study 6.3
1. Let X be the temperature that the package maintains.

( ) ( ) ( )
( ) ( ) ( ) ( )
The probability that the temperature goes below 20C is 0.0013. The
probability that the temperature
goes above 80C is 0.0288.
2. ( ) Therefore, the 5th percentile is

( )( )
( ) Therefore, the 95th percentile is
( )
The 5th and 95th percentiles of the temperature that the package maintains
are about 2.50C and 7.60C, respectively.
6-28

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Business Statistics Communicating

with Numbers 2nd Edition Jaggia

Chapter 6. Continuous Probability

b. Since 4 is the upper bound, ( ) ( )

c. ( ) ; The probability that a continuous random variable

a. A return of 20% is one standard deviation above the mean (20 = 8 +

b. A f ‒16% is two standard deviations b (‒ ‒

b. An IQ score of 68 is two standard deviations below the mean (68 = 100

b. A rent of $1,250 is one standard deviation below the mean (1,250 =

of rents are below $1,250.

c. A rent of $2,000 is two standard deviations above the mean (2,000 =

b. A score of 100 is two standard deviations above the mean (100 = 80 +

Excel command: ‘ NORM.DIST(270, 254, 11, 1) NORM.DIST(250, 254,

Excel command: ‘ NORM.DIST(5, 15, 9, 1) NORM.DIST(0, 15, 9, 1)’

c. Given ( ) we find . Therefore,

b. Let X represent the price of the artist's condo.

b. For the riskier fund: ( ) ( ) ( )

For the less risky fund: ( ) ( ) ( )

a. Given ( ) , we find = 0.84. Therefore, ( )

b. Given ( ) , we find = 1.64. Therefore, ( )

Excel command: ‘ NORM.INV(0.99,211.7,20)’

Excel command: ‘=EXPON.DIST(5.5,0.8,1) EXPON.DIST(1.5,0.8,1)’

new customer arrives in the next five minutes is independent of whether

Excel command: ‘=EXPON.DIST(20,0.1333,1)

Excel command: ‘=1 EXPON.DIST(25,0.1333,1)’

c. ( ) ( )( ) . 37.5% of deliveries are made

c. At first glance, the results seem somewhat surprising. Brad, on average,

Based on the symmetry of normal distributions, .

b. The expected profit per one system is ( ) ( )

a. ( ) Excel command: ‘=NORM.DIST(80,100,16,1)’

Excel command: NORM.DIST(125,100,16,1)’

Excel command: ‘=NORM.DIST(65,000, 55,000, 4,500, 1)

b. The probability will be the same because the exponential distribution

Excel command: ‘ EXPON.DIST(80,0.02,1) EXPON.DIST(70,0.02,1)’

Case Study 6.1

Weight Status Proportion of

Case Study 6.2

Case Study 6.3

1. Let X be the temperature that the package maintains.

2. ( ) Therefore, the 5th percentile is

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