Course Title: Business Statistics I

Lecturer: Amira Dridi

Solutions Tutorial # 3
Exercise #1

a. Statistics
amount spent for lunch
b.
Valid 9
N
Missing 0

Mean 7,0289
Median 7,3800
Std. Deviation 1,81249
Variance 3,285
Skewness -,091
Kurtosis -,706
Range 5,67
CoefVar 25,79

c. 𝑋 < Me → slightly left skewed distribution

d. The mean cost of lunch is $7.030. The average scatter of the cost around the mean is
$1.812 . Besides, 50% of these customers spend more/less than $7.380 for lunch. The
difference between the highest and the lowest amount is $5.670.
Exercise #2

a. Statistics
b.
waiting time

Valid 15 Time Z score

N 10,49 1,62105
Missing 0 6,68 -,20875
5,64 -,70823
Mean 7,1147 4,08 -1,45744
6,17 -,45369
Median 6,6800 9,91 1,34250
5,47 -,78987
Std. Deviation 2,08219
9,66 1,22243
Variance 4,336 5,90 -,58336
8,02 ,43480
Skewness ,072 5,79 -,63619
8,73 ,77579
Kurtosis -1,056 3,82 -1,58231
8,01 ,43000
Range 6,67
8,35 ,59329
CoefVar 29,27

1
 Z score is considered an outlier if it is less than -3 or greater than 3. None of the
waiting times for these customers meet that criterion to be considered outliers.
a. 𝑋 > Me → right skewed distribution.
b. The mean and median are both greater than 5 minutes. The distribution is right skewed
meaning that there are some unusually high values. Further, 13 out of the 15 bank
customers sampled (or 86.7%) had waiting times greater than 5 minutes. So the customer
is likely to experience a waiting time in excess of 5 mn. The manager overstated the
bank’s service record in responding that the customer would “almost certainly” not wait
longer than 5 mn for service.

Exercise #3

a.
Statistics
MPG

Valid 26
N
Missing 0
Skewness ,203

Kurtosis -,123
Minimum 16
Maximum 26

25 19,00

Percentiles 50 21,00

75 22,00

IR=Q3- Q1=3
The middle 50% of the SUVs spans a range of 3 MPG.

b. Min Q1 Q2 Q3 Max
16 19 21 22 26

c.

Slightly right skewed boxplot.

2
Exercise #4

a.
b.
Statistics
number of professionals per office

Valid 12
N
Missing 0
Std. Deviation 3,326
Variance 11,061

25 6,25

Percentiles 50 8,50

75 11,75

c. IR=Q3- Q1=5.5
The middle 50% of offices spans a range of 5 professionals.

d. Prof Z score
7 -,55125
10 ,35080
9 ,05011
14 1,55353
11 ,65148
8 -,25057
5 -1,15262
12 ,95217
8 -,25057
3 -1,75399
13 1,25285
6 -,85194

𝑆 3.326
e. 𝐶𝑉 = 𝑋 = 8.83
= 37.66%

Exercise #5

Number of Passengers Number of Midpoint f*M Cumulative

Arriving and Departing Airports (f) (M) Frequency
(millions)
20–under 30 8 25 200 8
30–under 40 7 35 245 15
40–under 50 1 45 45 16
50–under 60 0 55 0 16
60–under 70 3 65 195 19
70–under 80 1 75 75 20
∑=20 ∑=760

3
 𝑓𝑀
a. 𝜇𝑔𝑟𝑜𝑢𝑝𝑒𝑑 = 𝑁
= 38 Million passengers on average.

b. Modal class →highest frequency→[20, 30[

Mode=25 million passengers.

𝑁
c. Median class: 2
= 10 ∈ [30,40[
𝑁
−𝑐𝑓𝑝
𝑀𝑒 = 𝐿 + 2
𝑓 𝑚𝑒𝑑
(𝑤)=32.857

where,
L = the lower limit of the median class interval= 30
cfp = a cumulative total of the frequencies up to but not including the frequency of the median class=8
fmed = the frequency of the median class=7
W = the width of the median class interval=10
N = total number of frequencies=20

50% of airports contains more than 32.857≈33 million passengers.

𝑓(𝑀−𝜇 )2
d. 𝜎 2 = 𝑁
= 251
e. 𝜎 = 𝜎 2 = 15.843

Exercise #6

N=1024, µ=8.2, σ=2.75

a. According to the empirical rule, 68% of mutual funds≈696 are expected to be within
one standard deviation of the mean.
b. According to the empirical rule, 95% of mutual funds≈973 are expected to be within
two standard deviations of the mean.
According to the empirical rule, 99.7% of mutual funds≈1021 are expected to be
within three standard deviations of the mean.
c. According to the Chebyshev rule, at least 75% of mutual funds are expected to be
within two standard deviations of the mean and at least 88.89% are expected to be
within three standard deviations of the mean.
1
d. 1 − 𝑘 2 = 0.937
⇛ 𝑘 2 = 16
⇛𝑘=4
⇒ 𝜇 ± 4𝜎
⇛ [−2.8; 19.2[

According to the Chebyshev rule, at least 93.75% of these funds are expected to have
one-year total returns between -2.8 and 19.2.

Exercise #8

Based on the CV, we choose stock Y because it is less variable.

4
Exercise #9

a. Empirical rule:
 68% of workers spend within [392 and 446] minutes in their jobs per day.
 95% of workers spend within [365 and 473] minutes in their jobs per day.
 99.7% of workers spend within [338 and 500] minutes in their jobs per day.

b. Chebyshev rule:

k=2.22

79.71% of workers spend within [359 and 479] minutes in their jobs per day.

c. Z score= -0.704

The raw score of 400 is 0.704 below the mean. (Not an extreme value)

Exercise #10
𝜎
𝐶𝑉 = ∗ 100
𝜇

a. CV1=52.47%

b. CV2=45.75%

c. The per capita GDP for the second group of countries is less variable.