TEST 1

1. In 2011, there were 1901 fatalities recorded on Britain’s roads, 60 of which were for
children (Department of Transport, 2012). Correspondingly, serious injuries totalled 23
122 of which 20 770 were for adults.

a. (1 mark) What is the probability of a serious injury given the victim was a child?

• Total fatalities = 1,901

o Fatalities involving children = 60
o Fatalities involving adults = 1901 – 60 = 1,841
• Total serious injuries = 23,122
o Serious injuries involving adults = 20,770
o Serious injuries involving children = 23,122 – 20,770 = 2,352

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑒𝑟𝑖𝑜𝑢𝑑 𝑖𝑛𝑗𝑢𝑟𝑖𝑒𝑠 𝑖𝑛𝑣𝑜𝑙𝑣𝑖𝑛𝑔 𝑐ℎ𝑖𝑙𝑑𝑟𝑒𝑛

𝑃(𝑠𝑒𝑟𝑖𝑜𝑢𝑠 𝑖𝑛𝑗𝑢𝑟𝑦 | 𝑐ℎ𝑖𝑙𝑑 ) =
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐ℎ𝑖𝑙𝑑𝑟𝑒𝑛 𝑣𝑖𝑐𝑡𝑖𝑚𝑠
2352
= = 97.51%
(60 + 2,352)

b. (1 mark) What is the probability that the victim was an adult given a fatality
occurred?

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑎𝑑𝑢𝑙𝑡 𝑓𝑎𝑡𝑎𝑙𝑖𝑡𝑖𝑒𝑠 1,841

𝑃(𝑎𝑑𝑢𝑙𝑡| 𝑓𝑎𝑡𝑎𝑙𝑖𝑡𝑦) = = = 96.84%
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑎𝑡𝑎𝑙𝑖𝑡𝑖𝑒𝑠 1,901

2. The accounting department at Weston Materials Inc., a national manufacturer of

unattached garages, reports that it takes two construction workers a mean of 32 hours and
a standard deviation of 2 hours to erect the Red Barn model. Assume the assembly times
follow the normal distribution.

a. (1 mark) What percent of the garages take between 29 hours and 34 hours to
erect?
X = times in hours spent on erecting the Red Barn model

𝜇 = 32
𝑋~𝑁(𝜇, 𝜎 2 ) where {
𝜎=2

34 − 32 29 − 32
𝑃(29 < 𝑋 < 34) = 𝐹 ( )−𝐹( ) = 𝐹 (1) − 𝐹 (−1.5)
2 2
= 0.8413 − (1 − 0.9332) = 0.7745 = 77.45%

b. (1 mark) Of the garages, 5 percent take how many hours or more to erect?

𝑏−32
𝑃(𝑋 > 𝑏) = 0.05 ⟺ 𝑃(𝑏 < 𝑋 < +∞) = 0.05 ⟺ 𝐹 (+∞) − 𝐹 ( ) = 0.05 ⟺
2
𝑏−32 𝑏−32 𝑏−32
𝐹( ) = 0.95 ⟺ 𝐹 ( ) = 𝐹 (1.645) ⟹ = 1.645 ⟹ 𝑏 = 35.29 hours
2 2 2

3. Using historical records, the personnel manager of a plant has determined the
probability distribution of X, the number of employees absent per day. It is

X 0 1 2 3 4 5 6 7
P(X) 0,005 0,025 0,31 0,34 0,22 0,08 0,019 0,001
(𝑋 9.4 4.27 1.14 0.0044 0.87 3.74 8.6 15.48
2
− 𝜇)
Calculate the mean and the standard deviation

→ 𝜇 = 0 × 0,005 + 1 × 0,025 + 2 × 0,31 + 3 × 0,34 + 4 × 0,22 + 5 × 0,08 +

6 × 0,019 + 7 × 0,001 = 3.066

𝜎 2 = 9.4 × 0.005 + 4.27 × 0.025 + 1.14 × 0.31 + 0.0044 × 0.34 + 0.87 × 0.22
+ 3.74 × 0.08 + 8.6 × 0.019 + 15.48 × 0.001 = 1.178126

→ 𝜎 = √𝜎 2 = 1.0854

4. Rutter Nursery Company packages its pine bark mulch in 50 pound bags. From a long
history, the production department reports that the distribution of the bag weights follows
the normal distribution and the standard deviation of this process is 3 pounds per bag. At
the end of each day, Jeff Rutter, the production manager, weighs 10 bags and computes
the mean weight of the sample. Below are the weights of 10 bags from today’s
production.

45,6 47,7 47,6 46,3 46,2 47,4 49,2 55,8 47,5 48,5

a. (1 mark) Calculate the sample mean and standard deviation.

Sample mean 𝑥̅ = 48.18

Sample standard deviation 𝑠 = 2.8859

b. (1 mark) Contruct a 95 percent confidence interval for the population mean.

1 − 𝛼 = 0.95 → 𝛼 = 0.05

𝜎
𝑋~𝑁(𝜇, 𝜎 2 ) 𝑋̅~𝑁 (𝜇, )
√𝑛

𝜎 3 3
𝑥̅ ± 𝑧𝛼/2 = 48.18 ± 𝑧0.025 = 48.18 ± 1.96 × = 48.18 ± 1.8594
√𝑛 √10 √10

c. (1 mark) Can Mr. Rutter conclude that the mean weight of the bags is less than 50
pounds? Use the 0.01 significance level.

Let’s denote 𝜇 to be the mean weight of the bags

𝐻0 : 𝜇 ≥ 50
{
𝐻1 : 𝜇 < 50

Assume 𝐻0 is true, it means 𝜇 ≥ 50

𝜎 3 3
Reject 𝐻0 if 𝑥̅ < 𝜇 − 𝑧𝛼 ⟺ 𝑥̅ < 50 − 𝑧0.01 ⟺ 𝑥̅ < 50 − 2.33 × ⟺ 𝑥̅ < 47.79
√𝑛 √10 √10

Since 𝑥̅ = 48.18 > 47.79 → We accept 𝐻0 , reject 𝐻1 . That means 𝜇 ≥ 50

5. Research in the gaming industry showed that 10 percent of all slot machines in the
United States stop working each year. Short’s Game Arcade has 60 slot machines and
only 3 failed last year. Use the hypothesis-testing procedure at the 0.05 significance level
to test whether this data contradicts the research report.

a. (1 mark) State the null and the alternative hypotheses.

Let’s denote 𝑃 to be the proportion of all slot machines in the United States stop working
each year.

𝐻0 : 𝑃 = 0.1
{
𝐻1 : 𝑃 ≠ 0.1

b. (1 mark) What is the conclusion of the hypothesis testing?

Assume 𝐻0 is true, it means 𝑃 = 0.1

𝑃0 (1−𝑃0 ) 0.1(1−0.1)
Reject 𝐻0 if 𝑝̂ < 𝑃0 − 𝑧𝛼/2 √ ⟺ 𝑝̂ < 0.1 − 𝑧0.025 √ ⟺ 𝑝̂ < 0.0241
𝑛 60

Or

𝑃0 (1 − 𝑃0 ) 0.1(1 − 0.1)
𝑝̂ > 𝑃0 + 𝑧𝛼/2 √ ⟺ 𝑝̂ > 0.1 + 𝑧0.025 √ ⟺ 𝑝̂ > 0.1759
𝑛 60

Since 𝑝̂ = 0.05 → We accept 𝐻0 , reject 𝐻1 . That means 𝑃 = 0.1 → There is not sufficient
evidence to reject the claim in the research report.

TEST 2
1. Data evidence shows that last year 25% of the stocks in a stock exchange performed
well, 25% poorly, and the remaining 50% performed on average. Moreover, 40% of those
that performed well were rated a “good buy” by a stock analyst, as were 20% of those that
performed on average, and 10% of those that performed poorly.

a. (1 mark) What is the probability that a stock rated were rated a “good buy"?

A is the event that stock exchange performed well

B is the event that stock exchange performed poorly

C is the event that stock exchange performed on average

D is the event that stock exchange was rated a “good buy”

𝑃(𝐴) = 0.25 𝑃(𝐵) = 0.25 𝑃(𝐶 ) = 0.5 𝑃(𝐷|𝐴) = 0.4 𝑃(𝐷|𝐵) = 0.1 𝑃(𝐷|𝐶 ) = 0.2

𝑃 (𝐷 ) = 𝑃 (𝐴 ∩ 𝐷 ) + 𝑃 (𝐵 ∩ 𝐷 ) + 𝑃 ( 𝐶 ∩ 𝐷 )
= 𝑃(𝐴) × 𝑃(𝐷|𝐴) + 𝑃(𝐵) × 𝑃(𝐷|𝐵) + 𝑃(𝐶 ) × 𝑃(𝐷|𝐶 )
= 0.25 × 0.4 + 0.25 × 0.1 + 0.5 × 0.2 = 0.225 = 22.5%

b. (1 mark) What is the probability that a stock rated a “good buy" by the stock
analyst will perform well this year?

𝑃(𝐴 ∩ 𝐷 ) 𝑃(𝐴) × 𝑃(𝐷|𝐴) 0.25 × 0.4

𝑃(𝐴|𝐷 ) = = = = 0.4444 ≈ 44.44%
𝑃 (𝐷 ) 𝑃 (𝐷 ) 0.225

2. A recent report in USA Today indicated a typical family of four spends $490 per month
on food. Assume the distribution of food expenditures for a family of four follows the
normal distribution, with a mean of $490 and a standard deviation of $90.

a. (1 mark) What percent of the families spend more than $30 but less than $490 per
month on food?

X = how much money in dollar a family spent on food per month

𝜇 = 490
𝑋~𝑁(𝜇, 𝜎 2 ) where {
𝜎 = 90

490 − 490 30 − 490

𝑃(30 < 𝑋 < 490) = 𝐹 ( )−𝐹( ) = 𝐹 (0) − 𝐹 (−5.11)
90 90
= 0.5 − (1 − 1) = 0.5 = 50%

b. (1 mark) What percent of the families spend less than $430 per month on food?
 430 − 490
𝑃(𝑋 < 430) = 𝐹 ( ) − 𝐹 (−∞) = 𝐹 (−0.67) = 1 − 0.7468 = 0.2532
90
= 25.32%

3. The following density function describes the random variable X. Compute the
probability that X is less than 7.

𝑥
; 0<𝑥<5
25
𝑓 (𝑥) = (10 − 𝑥)
; 5 < 𝑥 < 10
25
{ 0; 𝑥 ∉ (0; 10)
7 0 5 7
𝑃(𝑋 < 7) = 𝑃(−∞ < 𝑋 < 7) = ∫ 𝑓 (𝑥)𝑑𝑥 = ∫ 𝑓 (𝑥)𝑑𝑥 + ∫ 𝑓 (𝑥)𝑑𝑥 + ∫ 𝑓 (𝑥)𝑑𝑥
−∞ −∞ 0 5
0 5 7(
𝑥 10 − 𝑥)
= ∫ 0𝑑𝑥 + ∫ 𝑑𝑥 + ∫ 𝑑𝑥 = 0.82 = 82%
−∞ 0 25 5 25

4. A corporation is considering a new issue of convertible bonds. Management believes

that the offer terms will be found attractive by 20% of all its current stockholders.
Suppose that this belief is correct. A random sample of 130 current stockholders is taken.
What is the probability that the sample proportion is between 0.18 and 0.22?

𝑃(1−𝑃) 0.2(1−0.2)
Standard error of the sample proportion 𝜎𝑝̂ = √ =√ = 0.04
𝑛 130

0.22 − 0.2 0.18 − 0.2

𝑃(0.18 < 𝑝̂ < 0.22) = 𝐹 −𝐹
√0.2(1 − 0.2) √0.2(1 − 0.2)
( 130 ) ( 130 )
= 𝐹 (0.57) − 𝐹 (−0.57) = 0.7157 − (1 − 0.7157) = 0.4314 = 43.14%
5. A survey of 750 university students found they were paying on average $108 per week
in accommodation costs. Assume the population standard deviation for weekly
accommodation costs is $22.

a. (1 mark) Construct a 90 per cent confidence interval estimate of the population

mean.

Sample mean 𝑥̅ = 108

Sample size 𝑛 = 750

Population standard deviation 𝜎 = 22

Estimate for 𝜇 with 1 − 𝛼 = 0.9 → 𝛼 = 0.1

𝜎 22
𝑥̅ ± 𝑧𝛼/2 = 108 ± 𝑧0.05 = 108 ± 1.322
√𝑛 √750

b. (1 mark) Construct a 95 per cent confidence interval estimate of the population

mean.

Estimate for 𝜇 with 1 − 𝛼 = 0.95 → 𝛼 = 0.05

𝜎 22
𝑥̅ ± 𝑧𝛼/2 = 108 ± 𝑧0.025 = 108 ± 1.5745
√𝑛 √750

6. After many years of teaching, a statistics professor computed the variance of the marks
on her final exam and found it to be 𝜎 2 = 250. She recently made changes to the way in
which the final exam is marked and wondered whether this would result in a reduction in
the variance. A random sample of this year’s final exam marks are listed here.

57 92 99 73 62 64 75 70 88 60

a. (1 mark) Calculate the sample mean and variance.

57+92+99+73+62+64+75+70+88+60
Sample mean 𝑥̅ = 74 =
10
 (57−74)2 +⋯+(60−74)2
Sample variance 𝑠 2 = 210.22 =
10−1

b. (1 mark) Can the professor infer at the 10% significance level that the variance
has decreased?

Let’s denote 𝜎 2 to be variance of this year’s final exam marks

𝐻0 : 𝜎 2 = 250
{
𝐻1 : 𝜎 2 < 250

Assume 𝐻0 is true, that means 𝜎 2 = 250

(𝑛−1)𝑠 2 2 (10−1)×210.22 2
Reject 𝐻0 if < 𝑋𝑛−1,1−𝛼 ⟺ < 𝑋9,0.9 ⟺ 7.56792 < 4.168
𝜎2 250

Since it is unaccurate that 4.168 > 7.56792, we accept 𝐻0 , reject 𝐻1 (Not reject the null
hypothesis and conclude that there is enough evidence to support the claim that the marks
on final exam did not decrease)

TEST 3
1. A union’s executive conducted a survey of its members to determine what the
membership felt were the important issues to be resolved during upcoming negotiations
with management. The results indicate that 74% of members felt that job security was an
important issue, whereas 65% identified pension benefits as an important issue. Of those
who felt that pension benefits were important, 60% also felt that job security was an
important issue. One member is selected at random.

a. (1 mark) What is the probability that he or she felt that both job security and
pension benefits were important?

A is the event that job security was an important issue

B is the event that pension benefits was an important issue

P(A) = 0.74

P(B) = 0.65

P(A|B) = 0.6

𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐵) × 𝑃(𝐴|𝐵) = 0.65 × 0.6 = 0.39 = 39%

b. (1 mark) What is the probability that the member felt that at least one of these
two issues was important?

𝑃(𝐴 ∪ 𝐵) = 𝑃(𝐴) + 𝑃(𝐵) − 𝑃(𝐴 ∩ 𝐵) = 0.74 + 0.65 − 0.39 = 1

2. According to a Gallup poll 27% of American adults have confidence in banks. Suppose
that you interview 5 Americans adults at random.

a. (1 mark) What is the probability that 2 or fewer have confidence in banks?

X = the number of American adult’s interviewees having confidence in banks

• 5 American adults = 5 random experiences

𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 = 𝑠𝑢𝑐𝑐𝑒𝑠𝑠
• Each adult {
𝑛𝑜 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 = 𝑓𝑎𝑖𝑙𝑢𝑟𝑒

𝑛=5
𝑋~𝐵(𝑛, 𝑝) where {
𝑝 = 0.27

𝑃 (𝑋 ≤ 2) = 𝑃 (𝑋 = 0) + 𝑃 (𝑋 = 1) + (𝑋 = 2)
= 𝐶05 × 0.270 × (1 − 0.27)5−0 + 𝐶15 × 0.271 × (1 − 0.27)5−1
+ 𝐶25 × 0.272 × (1 − 0.27)5−2 ≈ 0.8743 = 87.43%

b. (1 mark) What is the probability that no one had confidence in banks?

𝑃(𝑋 = 0) = 𝐶05 × 0.270 × (1 − 0.27)5−0 ≈ 0.2073 = 20.73%

3. A random variable has the following density function. Calculate the mean and
variance of the random variable.

𝑥
1− ; 0<𝑥 <2
𝑓 (𝑥 ) = { 2
0; 𝑥 ∉ (0; 2)
+∞ 0 2 +∞
𝐸 (𝑥 ) = 𝜇 = ∫ 𝑥 × 𝑓 (𝑥)𝑑𝑥 = ∫ 𝑥 × 𝑓 (𝑥)𝑑𝑥 + ∫ 𝑥 × 𝑓 (𝑥)𝑑𝑥 + ∫ 𝑥 × 𝑓 (𝑥)𝑑𝑥
−∞ −∞ 0 2
2
𝑥 2
= ∫ 𝑥 × (1 − ) 𝑑𝑥 =
0 2 3

+∞
2
𝑉 (𝑥 ) = 𝜎 = ∫ (𝑥 − 𝜇)^2 × 𝑓 (𝑥)𝑑𝑥
−∞
0
2 2 2
2 2
= ∫ (𝑥 − ) × 𝑓 𝑥 𝑑𝑥 + ∫ (𝑥 − ) × 𝑓 (𝑥)𝑑𝑥
( )
−∞ 3 0 3
+∞
2 2 2
2 2 𝑥 2
+∫ (𝑥 − ) × 𝑓 (𝑥)𝑑𝑥 = ∫ (𝑥 − ) × (1 − ) 𝑑𝑥 =
2 3 0 3 2 9

4. The weights of a random sample of cereal boxes that are supposed to weigh 1 pound
are listed here.

1,05 1,03 0,98 1,00 0,99 0,97 1,01 0,96

a. (1 mark) Calculate the sample mean and variance.

𝑥̅ = 0.99875

𝑠 2 = 0.0009267

b. (1 mark) Assume the normality, estimate the variance of the entire population of
cereal box weights with 90% confidence.

Estimate for 𝜎 2
 (𝑛 − 1)𝑠 2 (𝑛 − 1)𝑠 2 (8 − 1)𝑠 2 ( 8 − 1)𝑠 2
( 2 ; 2 )=( 2 ; 2 )
𝑋𝑛−1,𝛼/2 𝑋𝑛−1,1−𝛼/2 𝑋8−1,0.1/2 𝑋8−1,1−0.1/2
(8 − 1)0.000927 (8 − 1)0.000927
=( ; ) = (0.000461; 0.002994)
14.067 2.167

5. Fuel consumption tests are conducted for a particular model of car. If a 98 per cent
confidence interval with a margin of error of 0.2 litres per 100km is desired, how many
cars should be used in the test? Assume that preliminary tests indicate the standard
deviation is 0.5 litres per 100km.

1 − 𝛼 = 0.98 → 𝛼 = 0.02

𝜎 𝑧𝛼/2 ×𝜎 2 𝑧0.02/2 ×𝜎 2 2.06×0.5 2

𝑀𝐸 = 0.2 = 𝑧𝛼/2 ⇒𝑛=( ) =( ) =( ) = 26.5225 litres
√𝑛 𝑀𝐸 𝑀𝐸 0.2

6. Has the recent drop in airplane passengers resulted in better on-time performance?
Before the recent downturn one airline bragged that 92% of its flights were on time. A
random sample of 165 flights completed this year reveals that 153 were on time. Can we
conclude at the 5% significance level that the airline’s on-time performance has
improved?

Let 𝑃 be the proportion of flights who were on time

𝐻0 : 𝑃 = 0.92
{
𝐻1 : 𝑃 > 0.92

Assume 𝐻0 is true, that means 𝑃 = 0.92

0.92×(1−0.92)
Reject 𝐻0 if 𝑝̂ > 0.92 + 𝑧0.05 √ ⇔ 𝑝̂ > 0.9547
165
 153
Since 𝑝̂ = = 0.9273, hence we accept 𝐻0 , reject 𝐻1 (Not reject the null hypothesis
165

and conclude that there is enough evidence to support the claim that the airport
performance did not improve)

TEST 4
1. In a large corporation, 80% of the employees are men and 20% are women. The highest
levels of education obtained by the employees are graduate training for 10% of the men,
undergraduate training for 30% of the men, and high school training for 60% of the men.
The highest levels of education obtained are also graduate training for 15% of the women,
undergraduate training for 40% of the women, and high school training for 45% of the
women.

a. (1 mark) What is the probability that a randomly chosen employee will be a man
with only a high school education?

A is the event that employees are men

B is the event that employees are women

C is the event that employees are graduate training

D is the event that employees are undergraduate training

E is the event that employees are high school training

P(A) = 0.8 P(C|A) = 0.1 P(D|A) = 0.3 P(E|A) = 0.6

P(B) = 0.2 P(C|B) = 0.15 P(D|B) = 0.4 P(E|B) = 0.45

𝑃(𝐴 ∩ 𝐸 ) = 𝑃(𝐸|𝐴) × 𝑃(𝐴) = 0.6 × 0.8 = 0.48 = 48%

b. (1 mark) What is the probability that a randomly chosen employee who has
graduate training is a man?
 𝑃 (𝐴 ∩ 𝐶 ) 𝑃 (𝐴) × 𝑃(𝐶|𝐴) 𝑃(𝐴) × 𝑃 (𝐶|𝐴)
𝑃(𝐴|𝐶 ) = = =
𝑃 (𝐶 ) 𝑃(𝐴 ∩ 𝐶 ) + 𝑃(𝐵 ∩ 𝐶 ) 𝑃(𝐴) × 𝑃(𝐶|𝐴) + 𝑃(𝐵) × 𝑃(𝐶|𝐵)
0.8 × 0.1
= = 0.7273 = 72.73%
0.8 × 0.1 + 0.2 × 0.15

2. Andrew Whittaker, computer center manager, reports that his computer system
experienced three component failures during the past 100 days.

a. (1 mark) What is the probability of no failures in a given day?

X = the number of component failures in his computer system

3
𝑋~𝑃(𝜆) where 𝜆 = = 0.03 (the average failure rate per day)
100

𝑒 −0.03 × 0.030
𝑃 (𝑋 = 0) = = 0.97 = 97%
0!

b. (1 mark) What is the probability of at least two failures in a 3-day period?

𝑒 −0.09 × 0.090 𝑒 −0.09 × 0.091

𝑃(𝑋 ≥ 2) = 1 − [𝑃(𝑋 = 0) + 𝑃(𝑋 = 1)] = 1 − −
0! 1!
= 1 − 𝑒 −0.09 − 0.09𝑒 −0.09 = 0.003815 = 0.3815%

3. Forest Green Brown, Inc., produces bags of cypress mulch. The weight in pounds per
bag varies, as indicated in the accompanying table. The cost (in cents) of producing a bag
of mulch is 75 + 2X, where X is the number of pounds per bag. The revenue from selling
the bag, regardless of weight, is $2.50. If profit is defined as the difference between
revenue and cost, find the mean and standard deviation of profit per bag.

Weight 44 45 46 47 48 49 50
Proportion 0,04 0,13 0,21 0,29 0,2 0,1 0,03

Profits = Revenue – Cost = 250 – 75 + 2X = 175 – 2X

Weight 87 85 83 81 79 77 75
Proportion 0,04 0,13 0,21 0,29 0,2 0,1 0,03
33.64 14.44 3.24 0.04 4.84 17.64 38.44

𝐸 (𝑃𝑟𝑜𝑓𝑖𝑡) = 87 × 0.04 + 85 × 0.13 + 83 × 0.21 + 81 × 0.29 + 79 × 0.2 + 77 × 0.1

+ 75 × 0.03 = 81.2

𝑉 (𝑃𝑟𝑜𝑓𝑖𝑡 ) = 𝜎 2 = 7.8 ⟹ 𝜎 = √7.8 = 2.793

4. It is believed that first-year salaries for newly qualified accountants follow a normal
distribution with a standard deviation of $2,500. A random sample of 16 observations was
taken. Find the probability that the sample standard deviation is more than $3,000.
Find the probability that the sample standard deviation is less than $1,500.

𝜎 = 2,500 𝑛 = 16
5.

Sample mean 𝑥̅ = 130

Sample variance 𝑠 2 = 4276 → 𝑠 = 65.3911309

1 − 𝛼 = 0.95 → 𝛼 = 0.05

Estimate for 𝜇

𝑠 65.3911309
𝑥̅ ± 𝑡𝑛−1,𝛼/2 = 130 ± 2.093 × = 130 ± 30.6036
√𝑛 √20

6. A random sample of 50 university admissions officers was asked about expectations in

application interviews. Of these sample members, 28 agreed that the interviewer usually
expects the interviewee to have volunteer experience doing community projects. Test that
the population proportion is larger than one-half. Use 𝛼 = 0.05.

Let’s P to be the proportion of university admissions officicers’ expectation in interviewee

having volunteert experience doing community projects.

𝐻0 : 𝑃 ≤ 0.5
{
𝐻1 : 𝑃 > 0.5

Assume 𝐻0 is true, this means 𝑃 ≤ 0.5

𝑃0 (1−𝑃0 ) 0.5×(1−0.5)
Reject 𝐻0 if 𝑝̂ > 𝑃0 + 𝑧𝛼 √ = 𝑝̂ > 0.5 + 𝑧0.05 √ = 0.6163
𝑛 50
 28
Since 𝑝̂ = = 0.56 < 0.6163, so we accept 𝐻0 , reject 𝐻1 for not having enough
50

evidence to conclude that the proportion of university admissions officicers’ expectation

in interviewee having volunteert experience doing community projects is larger than one-
half.

TEST 5
1. Of 100 patients with a certain disease, 10 were chosen at random to undergo a drug
treatment that increases the cure rate from 50% for those not given the treatment to 75%
for those given the drug treatment.

a. (1 mark) What is the probability that a randomly chosen patient was both cured
and was given drug treatment?

A is the event that patient is cured

B is the event that patient receivd the treatment

𝑃(𝐵) = 10/100 = 0.1

𝑃(𝐴|𝐵̅) = 0.5

𝑃(𝐴|𝐵) = 0.75

𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐴|𝐵) × 𝑃(𝐵) = 0.75 × 0.1 = 0.075 = 7.5%

b. (1 mark) What is the probability that a patient who was cured had been given the
drug treatment?

𝑃 (𝐴 ∩ 𝐵 ) 𝑃 (𝐴|𝐵) × 𝑃(𝐵 ) 0.75 × 0.1

𝑃(𝐵|𝐴) = = = = 0.1428
𝑃 (𝐴 ) 𝑃(𝐴 ∩ 𝐵) + 𝑃(𝐴 ∩ 𝐵̅) 0.75 × 0.1 + 0.5 × 0.9
2. The amount of time devoted to studying statistics each week by students who achieve a
grade of A in the course is a normally distributed random variable with a mean of 7.5
hours and a standard deviation of 2.1 hours.

a. (1 mark) What proportion of A students study for more than 10 hours per week?

X = time in hours spent studying statistics to achieve an A score per week

𝜇 = 7.5 ℎ𝑜𝑢𝑟𝑠
𝑋~𝑁(𝜇, 𝜎 2 ) where {
𝜎 = 2.1 ℎ𝑜𝑢𝑟𝑠

10 − 7.5
𝑃(𝑋 > 10) = 𝑃(10 < 𝑋 < +∞) = 𝐹 (+∞) − 𝐹 ( ) = 1 − 𝐹 (1.19)
2.1
= 1 − 0.8830 = 0.117 = 11.7%

b. (1 mark) What is the amount of time below which only 5% of all A students spend
studying?

𝑏−7.5
𝑃(𝑋 < 𝑏) = 0.05 ⟺ 𝑃(−∞ < 𝑋 < 𝑏) = 0.05 ⟺ 𝐹 ( ) − 𝐹 (−∞) = 0.05 ⟺
2.1
𝑏−7.5 𝑏−7.5
𝐹( ) = 𝐹 (−1.645) ⟺ = −1.645 ⇒ 𝑏 = 4.0455 hours
2.1 2.1

3. We are given the following probability distribution. Suppose that Y = 3X + 2. What is

the probability of distribution of Y ?

X 0 1 2 3
P(X) 0.4 0.3 0.2 0.1

Y 2 5 8 11
P(Y) 0.4 0.3 0.2 0.1
4.

→ Dangerous Stress level score 80 lies in the 95 percent confidence interval (79.1594,
95.7746). So, it is reasonable to conclude that Internet executives have a mean stress level
in a dangerous level.

5. A random sample of 100 men contained 61 in favor of a state constitutional amendment

to retard the rate of growth of property taxes. An independent random sample of 100
women contained 54 in favor of this amendment. A confidence interval extending from
0.04 to 0.10 was calculated for the difference between the population proportions.
Determine the confidence level of this interval.

Random sample size 𝑛𝑥 = 100; 𝑛𝑦 = 100

Let 𝑃𝑥 to be the proportion of men advocating a state constitutional amendment to retard

the rate of growth of preperty taxes.

Let 𝑃𝑦 to be the proportion of women advocating a state constitutional amendment to

retard the rate of growth of preperty taxes.
 The given confidence level is 1 − 𝛼 = 0.3328 = 33.28%
A company wants to estimate the proportion of people who are likely to purchase electric
shavers from those who watch the nationally telecast baseball playoffs. A random sample
obtained information from 120 people who were identified as persons who watch baseball
telecasts. Suppose that the proportion of those likely to purchase electric shavers in the
population who watch the telecast is 0.25.

The probability is 0.10 that the sample proportion watching the telecast exceeds the
population proportion by how much?
  a = 0.04 * 1.28 = 0.0512

The probability is 0.05 that the sample proportion is lower than the population proportion
by how much?
  a = -0.04*-1.64 = 0.0656

The probability is 0.30 that the sample proportion differs from the population proportion
by how much?
 a = 0.04 * 1.03 = 0.0412
 Since the rejection condition is not satisfied, there is sufficient evidence to
conclude that the mean weight of the shampoo bottles produced when the process
is running smoothly is 20 ounces.
 In the light of the results, there is sufficient evidence to support the claim that 60
percent of the students who take her Elementary Statistics class go through life
feeling more enriched, since the test statistical value lies before the critical region,
indicating that the null hypothesis is not rejected.