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    BA 578 Assignment-Sol- due by Midnight (11:59pm) Monday, Sept 15th

    ,

    2014(Chapters 1, 2, 3 and 4): Total 75 points

    True/False (One point each)

    Chapter 1

    1. An example of a quantitative variable is the telephone number of an individual. FALSE

    2. An example of a interval scale variable is the make of a car. FALSE

    3. Credit score is an example of an interval scale variable. TRUE There is no intrinsic Zero.

    An arbitrary minimum is established. Therefore, it is an interval scale variable.

    4. The number of people eating at a local caf between noon and 2:00 p.m. is an example of a

    discrete variable. TRUE

    Chapter2

    5. When establishing the classes for a frequency table it is generally agreed that the more classes

    you use the better your frequency table will be. FALSE We try to follow the 2krule. Having

    too many classes is not good.

    6. The cumulative distribution function is never decreasing. TRUE It is always increasing and

    becomes flat at the end point.

    7. A Histogram is a graphic that is used to depict quantitative data. TRUE Bar Chart is used for

    qualitative data.

    Chapter 3

    8. The Mean is the measure of central tendency that divides a population or sample into two

    equal parts (that is two parts with equal frequencies) FALSE It is the median which does that.

    9. If there are 7 classes in a frequency distribution then the fourth class necessarily contains the

    median. FALSE It depends on the class frequencies

    10. The sum of deviations from the mean (taking into account the frequencies) can be negative,zero or positive. FALSE It is always Zero

    11. The median is said to be less sensitive to extreme values. TRUE This statement is a

    relative statement (implicitly) comparing Median with the other popular measure of

    central tendency, namely, the Mean. But some students read the statement in absolute

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    terms and answered it wrong although they knew that Median is not sensitive to extreme

    values. Therefore, I removed this question from grading.

    12. The Empirical Rule is used to describe a population that is not highly skewed. TRUE It is

    based on the symmetrical Normal distribution and can be safely applied only for slightly

    skewed non-Normal distributions. For highly skewed distribution it is not appropriate.

    Chapter 4

    13. If events A and B are independent and A is not an impossible event, then P(A/B) is not equal

    to zero. TRUE In fact P(A/B) equals P(A) if A and B are independent, which is not zero unless

    A is an impossible event.

    14. If events A and B are mutually exclusive, then the conditional probability P(A/B) is a

    positive number greater than zero but less than 1. FALSE This is obvious from the definition of

    mutually exclusive events. If B occurs then A cannot occur. Therefore P(A/B) = 0.

    15. The union of events A and B is given by all basic outcomes common to both A and B

    FALSE This statement is for Intersection, not for Union.

    Multiple Choices (each question carries two points):

    Chapter 1

    1. Ratio variables have the following unique or special characteristic:

    A. Meaningful orderB. Predictable

    C. Categorical in nature

    D. An inherently defined zero value

    2. Which of the following is a quantitative variable?

    A. The make of a TV

    B. The price of a TV

    C. The VIN of a car

    D. The rank of a police officer

    E.The Drivers License Number

    3. Which of the following is a categorical or Nominal variable?

    A. The Social Security Number of a person

    B. Bank Account Balance

    C. Daily Sales in a Store

    D. Air Temperature

    E. Value of Company Stock

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    4. The level of Satisfaction in a Consumer survey would represent a(n) ____________ level of

    measurement.

    A. Nominative

    B.Ordinal

    C. Interval

    D. Ratio

    Chapter 2

    5. When developing a frequency distribution the class (group), intervals must be

    A. Large

    B. Small

    C.Mutually exclusive.

    D. Whole numbers

    E. Equal

    Having equal intervals (or nearly equal intervals) is generally (not always) desirable. Butit is not necessary and not even appropriate in some applications. For example, in Income

    distribution the classes are arbitrarily formed and are generally unequal. Similarly many

    distributions have the lowest and/or highest class with open bounds which make these class

    intervals different from other classes.

    6. If there are 80 values in a data set, how many classes should be created for a frequency

    histogram?

    A. 4

    B. 5

    C. 6

    D. 7

    E. 8

    Just apply the 2krule for question 8.

    7. Consider the following frequency distribution from Excel. What is the missing value?

    Bin Frequency Cumulative %

    584 1 4.00%

    1774.4 64.00%

    2964.8 4 80.00%

    4155.2 3 92.00%

    5345.6 1 96.00%

    More 1 100.00%

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    A. 4

    B. 10

    C. 12

    D. 15

    E. 20

    Chapter 3

    8. In a statistic class, 10 scores were randomly selected with the following results obtained: 75,

    74, 77, 77, 71, 70, 65, 78, 67, and 66. What is the Standard deviation?

    A. 21.40

    B. 23.78

    C. 4.88

    D. 4.63

    E. 214.00

    X X(X-bar) (X-Xbar)

    75 3 9

    74 2 4

    77 5 25

    77 5 25

    71 -1 1

    70 -2 4

    65 -7 49

    78 6 36

    67 -5 25

    66 -6 36

    720 0 214

    s2

    x = 214 / (101) = 23.78 sx= 23.78 = 4.88

    9.According to a survey of the top 10 employers in a major city in the Midwest, a worker

    spends an average of 413 minutes a day on the job. Suppose the standard deviation is 26.8

    minutes and the time spent is approximately a normal distribution. What are the times that

    approximately 95.45% of all workers will fall?

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    A. [387.5 438.5]

    B. [386.2 439.8]

    C. [372.8 453.2]

    D. [359.4 466.6]

    E. [332.6 493.4]

    10. When using the Chebyshev's theorem to obtain the bounds for a 99.73 percent of the values

    in a population, the interval generally will be ___________ the interval obtained for the same

    percentage if normal distribution is assumed (empirical rule).

    A. Shorter than

    B.Wider than

    C. The same as

    D. A Subset of

    See Instructions. Chebyshevs theorem is more general but is less precise compared to the

    empirical rule.

    11. In a hearing test, subjects estimate the loudness (in decibels) of sound and the results are:

    68, 67, 70, 71, 67, 75, 69, 62, 80, 73, 68 What is the median?

    A. 67

    B. 68

    C. 69

    D. 70

    E. 71

    Put items in order: 62,67,67,68,68,69,70,71,73,75,80 Median = [11 + 1] / 2 or 6

    th

    item

    12. The numbers of rooms for 15 homes recently sold were: 8, 8, 8, 5, 9, 8, 7, 6, 6, 7, 7, 7, 7, 9, 9

    What is the standard deviation?

    A. 1.96

    B. 1.40

    C. 1.31

    D. 1.14

    E 1.18

    X X(X-bar) (X-Xbar)

    5 -2.4 5.76

    6 -1.4 1.96

    6 -1.4 1.96

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    7 -.4 .16

    7 -.4 .16

    7 -.4 .16

    7 -.4 .16

    7 -.4 .16

    8 .6 .36

    8 .6 .36

    8 .6 .36

    8 .6 .36

    9 1.6 2.56

    9 1.6 2.56

    9 1.6 2.56

    111 0 19.6

    Mean = 111/15 = 7.4 Sample variance s2

    x= 19.6/14 = 1.4 and s = 1.4 = 1.18

    Chapter 4

    13. Two mutually exclusive events having positive probabilities are ______________

    dependent.

    A. Never

    B. Sometimes

    C.Always

    They are necessarily dependent because the occurrence of one (seriously) affects the probability

    of the other (makes it zero). Instructions on Ch 4 page 4

    14. If P(A) >0 and P(B) > 0 and events A and B are independent, then:

    A.P(A) = P(B)B.P((A|B)) = P(A)

    C.P(A B) = 0

    D.P(A B)=P(A)/P(B/A)

    E. Both A and C are correct

    See My Instructions on Ch 4 page 5. Independence does not imply equality of probabilities. So

    the first choice is clearly wrong. The third choice applies to mutually exclusive events not

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    independent events. The fourth choice is also incorrect because there should be multiplication on

    the right hand side not division. So the correct answer is B.

    Essay Type Questions (4 points each)

    Chapter 21. Consider the following data on distances traveled by people to visit the local amusement

    park.

    Distance Frequency

    1-8 miles 15

    8-15 miles 14

    15-22 miles 10

    22-29 miles 8

    29-36 miles 3

    Expand and construct the table adding columns for relative frequency and cumulative relative

    frequency and construct the histogram of frequencies, plot the frequency polygon and the

    Ogive curve using Excel.

    distance freq rel.fr cum.rel.fr

    1-8 15 0.30 0.30

    8-15 14 0.28 0.58

    15-22 10 0.20 0.78

    22-29 8 0.16 0.94

    29-36 3 0.06 1.00

    total 50 1.00 na

    The following plots were obtained using simple Excel and Insert/scatter plot functions (without using

    analysis Tool Pack)

    Histogram

    1514

    10

    8

    3

    0

    2

    4

    6

    8

    10

    12

    14

    16

    1-8 miles 8-15 miles 15-22 miles 22-29 miles 29-36 miles

    Frequency

    Frequency

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    Frequency PolygonFrequency Polygon

    Ogive Curve

    15

    14

    10

    8

    3

    0

    2

    4

    6

    8

    10

    12

    14

    16

    1-8 miles 8-15 miles 15-22 miles 22-29 miles 29-36 miles

    Frequency

    Frequency

    0.30

    0.58

    0.78

    0.941.00

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    1-8 miles 8-15 miles 15-22 miles 22-29 miles 29-36 miles

    Cumulative Relative Frequency

    Cumulative Relative Frequency

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    2. Math test anxiety can be found throughout the general population. A study of 120 seniors at a

    local high school was conducted. The following table was produced from the data. Complete the

    missing parts. (Work step by step to solve this puzzle. Round the frequencies to the nearest

    whole number.)

    Score Range Frequency Rel frequency Cumulative Rel. freq.Very anxious 37-50 0.20

    Anxious 33-36 12

    Mild Anxiety 27-32

    Relaxed 20-26 24

    Very Relaxed 10-19 0.30

    Total

    We have to work step by step using our knowledge of Frequency tables to solve this puzzle.

    For the f ir st class, Relati ve Frequency and Cumulative Relati ve Frequency wil l be the same.

    So we wri te 0.20 in the fi rst row last column. Moreover, we fi nd the fr equency for thi s class by

    mul tiplying Relati ve fr equency 0.20 by total f requency 120 to get 24. Thus, f ir st r ow iscompletely f il led. In the second row we convert the given frequency 12 in to relati ve fr equency

    after dividing by 120 which gives 0.10. Therefore, the cumulative relative frequency in the

    second row wi l l be 0.30. Thus, second row is f il led too.Next we convert the given relative

    frequency in the fi fth row into f requency after mul tipl ying 0.30 by 120 and rounding to get 36.

    Since the total f requency is given as 120, we can fi nd the remaining fr equency for the thi rd

    row once we have the frequencies for the other four rows. I t is calcul ated as 24. The rest of

    the story should be clear to you. Just remember that the total of all frequencies must be the

    given number 120 and the total of al l r elative frequencies must always be 1.

    Score Range Frequency Rel frequency Cumulative Rel. freq.

    Very anxious 37-50 24 0.20 0.20Anxious 33-36 12 0.10 0.30

    Mild Anxiety 27-32 24 0.20 0.50

    Relaxed 20-26 24 0.20 0.70

    Very Relaxed 10-19 36 0.30 1.00

    Total 120 1.000 NA

    3. The number of items rejected daily by a manufacturer because of defects for the last 30 days

    are: 22, 21, 8, 17, 25, 20, 18, 19, 14, 13, 11, 6, 21, 23, 4, 19, 11, 12, 16, 16, 10, 28, 24, 6, 21, 20,

    25, 5, 17, 9 . Complete this frequency table for the above data showing columns for Frequency,

    Relative Frequency and Cumulative Relative Frequency and plot the Ogive curve

    Frequency Relative Frequency Cum Relative Frequency4

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    Ogive

    4-9 9-14 14-19 19-24 24-29

    Chapter 34. The following frequency table summarizes the distances in miles of 100 patients from a

    regional hospital.Distance (miles) Frequency0-4 404-8 30

    8-12 20

    12-16 516-20 5

    Calculate the sample standard deviation for this data (since it is a case of grouped data with

    classes, use group or class midpoints in the formula in place of X values).

    Calculate the Sample Mean

    DistanceClass Midpoint

    (Mi)

    Frequency (fi)fi*Mi

    0-4 2 40 80

    4-8 6 30 180

    8-12 10 20 200

    12-16 14 5 70

    16-20 18 5 90

    Total NA 100 620

    The Sample Mean = = 6.2

    Calculate the standard deviation:

    0.167

    0.367

    0.567

    0.867

    1

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    Series2

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    Distance

    Class

    Midpoint

    (Mi)

    Frequency (fi) Deviation(Mi-

    )

    Squared Deviation

    (Mi- )2 fi*(Mi- )

    2

    0-4 2 40 - 4.2 17.64 705.6

    4-8 6 30 - 0.2 0.04 1.2

    8-12 10 20 3.8 14.44 288.812-16 14 5 7.8 60.84 304.2

    16-20 18 5 11.8 139.24 696.2

    Total NA 100 NA NA 1996

    Sample Variance, s2=

    = 20.1616; Sample Standard Deviation, s =

    = 4.49

    5. Use the data in Essay question number 3 aboveto calculate the sample Mean,Variance and Standard deviation without grouping the data (that is, as a series of

    individual values)

    Answer: Mean = 16.033

    Variance = 44.102

    Standard Deviation = 6.641

    Data

    22 Column1

    21

    8 Mean 16.033

    17 Standard Error 1.212

    25 Median 17.000

    20 Mode 21.000

    18 Standard Deviation 6.641

    19 Sample Variance 44.102

    14 Kurtosis -0.955

    13 Skewness -0.225

    11 Range 24.000

    6 Minimum 4.000

    21 Maximum 28.000

    23 Sum 481.0004 Count 30.000

    19

    11

    12

    16

    16

    10

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    28

    24

    6

    21

    20

    255

    17

    9

    Mean 16.033

    Count 30

    Using calculator

    X X- (X- )2

    22 5.967 35.601

    21 4.967 24.668

    8 -8.033 64.534

    17 0.967 0.934

    25 8.967 80.401

    20 3.967 15.734

    18 1.967 3.868

    19 2.967 8.801

    14 -2.033 4.134

    13 -3.033 9.201

    11 -5.033 25.334

    6 -10.033 100.66821 4.967 24.668

    23 6.967 48.534

    4 -12.033 144.801

    19 2.967 8.801

    11 -5.033 25.334

    12 -4.033 16.268

    16 -0.033 0.001

    16 -0.033 0.001

    10 -6.033 36.401

    28 11.967 143.201

    24 7.967 63.4686 -10.033 100.668

    21 4.967 24.668

    20 3.967 15.734

    25 8.967 80.401

    5 -11.033 121.734

    17 0.967 0.934

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    9 -7.033 49.468

    Total 481 0.000 1278.967

    Sample Variance 1278.967/29 = 44.102

    Sample Std. Dev. 44.102 = 6.641

    Chapter 4

    6. At a college, 55 percent of the students are women and 40 percent of the students receive a

    grade of C. About 35 percent of the students are female but not C students. Use this contingency

    table.

    C Not C

    Female 0.30 0.55

    Male

    0.40

    If a randomly selected student is a C student, what is the probability the student is a male

    student?

    The completed table is:

    C Not C

    Female 0.25 0.30 0.55

    Male 0.15 0.30 0.45

    0.40 0.60 1.000

    P(M/C) = P(M and C)/P(C) = 0.15/0.40 = 0.375or 37.5% chance.

    Some of you just answered 0.15, but that is the probability of "male andC", not the probability

    of "Male"given C.

    7. The contingency table about customers of a store who buy cigars and/or beer is given below.

    Beer No Beer

    Cigars 0.20

    No cigar 0.10 0.40

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    Determine the probability that a customer will buy at least one of these items: cigar or beer.

    The completed table is:

    Beer No Beer

    Cigars 0.30 0.20 0.50

    No cigar 0.10 0.40 0.50

    0.40 0.60 1.00

    Answer: P(C or B) = P(C) + P(B) - P(C and B) = 0.50 + 0.40 - 0.30 = 0.60 or 60% chance.

    You can also obtain the same probability by working with the rule of complements. The

    opposite of buying Cigar or Beer or both is neither Cigar nor Beer. The probability forneither Cigar nor Beer accordingto the contingency table is 0.40. Therefore, by the ruleof complements, the probability asked is 1- 0.40 = 0.60.

    8. Four employees who work as drive-through attendees at a local fast food restaurant are being

    evaluated. As a part of quality improvement initiative and employee evaluation these workers

    were observed over three days. One of the statistics collected is the proportion of time employee

    forgets to include a napkin in the bag. Related information is given in the table.

    Worker Proportion of Dinners Packed

    Proportion of forgetting Napkin when

    packing Dinner

    Joe 0.20 0.05Jan 0.30 0.02

    Cheryl 0.15 0.14

    Clay 0.35 0.04

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    You just purchased a dinner and found that there is no napkin in your bag, what is the probability

    that Clay has prepared your order?

    Answer: First note that the last column in the above table gives conditional probabilities.

    For example 0.06 is the probability of forgetting napkin given that Joe packed the dinner

    or P(No napkin/Joe). In the question we are given that No napkin has occurred and asked

    to find the probability of Clay in light of this result. So here we are asked a reverse

    conditionality than the one given in the contingency table. According to the Instructions for

    Chapter 4, this requires Bayesian rule. Therefore,

    P(Clay/ No napkin) = 0.014/0.051 = 0.2745 or 27.45%

    The numerator is P(Clay and No napkin)=P(Dinner packed by Clay)*P(No napkin given

    that Clay packed Dinner) = 0.35*0.04 = 0.014.

    The denominator is P(No napkin)= P(Joe and no napkin)+ P(Jan and No napkin)+

    P(Cheryl and No napkin)+ P(Clay and no napkin) = 0.010 + 0.006 + 0.021 + 0.014 = 0.051

    as shown in the table below (everything converted to decimals instead of percentage,

    because working with percentage is messy):

    Worker

    Proportion of Dinners

    Packed by individual

    workers

    Proportion of forgetting

    Napkin given the

    worker (conditional

    probability)

    Joint probability

    Col. 2*Col.3

    Joe 0.20 0.05 0.010

    Jan 0.30 0.02 0.006

    Cheryl 0.15 0.14 0.021Clay 0.35 0.04 0.014

    0.051

    This formula is also called the Bayesian rule for probability revision based on the results of

    an experiment. Here the prior probability of Clay is 35%, but the posterior probability has

    been revised downward to 27.45% (called the revised or posterior probability) after

    noticing that the dinner had no napkins, because Clay is one of the least forgetful ones. If

    the question were for Cheryl the posterior probability would be higher than the prior

    probability because she has a very high chance of forgetting napkin (14%).