Dr.

Le Anh Tuan

Session 3. Homework

S3.1
Suppose you have $150,000, and you would like to invest $50,000 in Vinamilk stock, which has
an expected return of 15%, $80,000 in VCB banks, which have an expected return of 6.5%, and
the remaining money in government bonds, which have an expected return of 4%.
a. Find the expected return of your investment.
b. Suppose you require a minimum return of 10% for your investment. You will change the
banks where you deposit your money. The interest rates of the banks are as follows:
Banks Interest Rates (%)
BIDV 6.2
Vietinbank 6.9
HSBC 7.8
ACB 8.5
TCB 9.2
Which banks will you choose?
c. Which banks exhibit the greatest fluctuation in interest rates compared to the average?

S3.2
For a symmetric bell-shaped population with a mean of 30 and standard deviation of 4, what
interval will contain?
a. About 95% of all the values.
b. About 99.7% of all values.

S3.3
The following numbers are the minutes of training for 25 new employees in a manufacturing
company.
5 229 49 483 25 34 37 125 14
7 64 192 22 23 453 18 34
47 67 69 21 24 12 14 14

a. Find the mean, mode, median, variance, and standard deviation for this sample.
b. Find Coefficient of Variation
c. Find lower and upper quartiles, median, and interquartile range (IQR). Check for any
outliers.
d. Find 60th percentile.
e. Construct a box plot. Do the data appear to be symmetrically distributed along the
measurement axis?

S3.4
The number of people visiting a restaurant each day, for 11 days, is listed below.

104 131 120 115 109 124 128 118 116 120 125

(a) Using the 10’s digit as the stem, complete an ordered stem and leaf diagram for this
information.
 Dr. Le Anh Tuan

Keys: 10|4 means 104

Stem Leaf

(b) Write down the mode, median, and range.

(c) Are the data skewed?

S3.5
The box & whisker graph below which shows average minutes per days spent on the Internet.

a. What percent of the sample spend more than 96 minutes on the Internet per day?
b. What was the median time?
c. What is the range of times that the middle 50% of the sample spend on the Internet per
day?
d. What are the maximum minutes spent on the Internet?
e. How many people do not spend time for the Internet?
f. A person who have spent 125 minutes for the Internet per day is considered as outliers?
How about 25 minutes?

S3.6
Henry is evaluating two financial assets, labeled as asset A and asset B, for potential investment.
He is uncertain about which of these individual assets would be the superior choice. Henry
recognizes that the standard deviation, denoted as "s," is the widely accepted metric for assessing
the risk or variability associated with a specific asset. This metric quantifies the extent of
fluctuations in returns relative to the asset's average performance. Within the financial market,
Henry takes into account two scenarios: before and after the Covid-19 pandemic. He computes
both the means and standard deviations for each asset and presents the resulting tables.
Return Rates
Asset A Asset B
Mean of Return Rates
Before Covid-19 18% 18%
After Covid-19 6% 14%
Standard Deviation of Return Rates 1.2% 1.7%
If Henry is risk-averse, provide recommendations on the financial instruments he should consider
for investment.
(i) Before the Covid-19
(ii) After the Covid-19
 Dr. Le Anh Tuan

S3.7
The lifetime of an iPhone battery in days are as follows:

1000 1021 850 920 991 939 1105 989 700 800 950 1200 950

a. Find a mean, median, mode time.

b. Find a range, variance, standard deviation, and coefficient of variance.
c. If the population's shape is unknown, describe the lifetime distribution.
d. If the population's shape is bell-shaped, describe the lifetime distribution.
e. Find the z-score for a battery that lasts only 700 days.
f. Find the z-score for a battery that lasts 1,400 days. Is this number usual?

S3.8
For a random sample of 30 customers from a KFC store, the accompanying table shows
the costs of their purchase (in $). The results were as follows:

0<3 3<5 5 <7 7<9 9<11 11<13 13<15

3 4 8 1 7 4 3

a. Estimate the sample mean cost.

b. Estimate the sample standard deviation.

S3.9
This table lists the calories and sugar content in grams for one serving of seven cups of tea.
Tea Calories Sugar
Green tea 80 6
Black tea 100 2
Rose tea 100 4
Jasmine tea 110 4
Lotus tea 130 4
Honey tea 190 11
Lemon tea 200 10

a. Find the covariance.

b. Find the coefficient of correlation.
c. Which measure do you believe is more effective in indicating the relationship between
calories and sugar: covariance or the correlation coefficient? Please provide your
reasoning.
d. Based on (a) and (b), what conclusions can you reach about the relationship between
calories and sugar?