AMA1501 Examination 2012/2013 Semester 1 Outline Suggested Solution

Department of Applied Mathematics

AMA1501 Introduction to Statistics for Business
Examination 2012/2013 Semester 1 Outline Suggested Solution

1 (a) Class mark (x) Frequency, f

2 1
4 2
5.5 14
6.5 29
7.5 20
9 9
11 5

f 80 fx 561.5 fx 2
4143.75
561.5
Mean = 7.0188 minutes
80
29 14
Mode = 6 7 6 6.625 minutes
29 14 29 20
80 4143.75 561.52
Standard deviation = 1.6019 minutes
80 80 1
1 (b) Time spent less than (minutes) Cumulative frequency
1 0
3 1
5 3
6 17
7 46
8 66
10 75
12 80
64 46
D8 7 8 7 7.9 minutes
20
1 (c) Estimated Pr(time spent between 6.5 minutes and 8.5 minutes) is
7 6.5 8.5 8
29 20 9 80 0.4594
76 10 8
Let X be the number of students complete the online test within 6.5 minutes and
8.5 minutes, out of 5
X~B(5,0.4594)
5
5
Pr X 3 1 0.4594 1 0.4594 0.8592
x 5 x

x4 x

1 (d) A 95% confidence interval for is

7.0188 1.96 1.6019 80 , i.e. 6.6677 7.3698 (minutes)

2 (a) C1 4 C1 3 C1 5 4 3 3
5

12 C3 220 11

 AMA1501 Examination 2012/2013 Semester 1 Outline Suggested Solution

2 (b) (i) A: participant rated the course is useful

B: participant has registered advanced level courses
Pr(A) = 0.85 Pr(B) = 0.75 Pr(A|B) = 0.9
Pr A B 1 0.85 0.75 0.75 0.9 0.075
2 (b)(ii) 0.75 0.9
Pr B A 0.7941
0.85
2 (c) A: company A is chosen
B: company B is chosen
C: company C is chosen
L: Late delivery
Pr A = 0.4 Pr B = 0.35 Pr C =0.25
Pr L A 0.015 Pr L B 0.025 = Pr L C 0.03
0.35 0.025
Pr B L 0.3933
0.4 0.015 0.35 0.025 0.25 0.03
Let X be the number deliveries that was handled by company B, given that
these three are late deliveries
X~B(3,0.3933)
3
Pr X 1 0.39331 0.3933 0.4343
2

3 (a)(i) Let X be the random variable of the monthly repair and maintenance expenses.
Pr 80000 X 110000 Pr 1.67 Z 0.83
1 0.0475 0.2033 0.7492
3 (a)(ii) P(Z a) = 0.05 => a = 1.645
100000+(1.645)12000 = 119740 < 128000 so it is on the list
3 (a)(iii) Pr X 78000 Pr Z 1.83 0.0336
Let Y be the number of months that the expenses are below $78000
Y ~ b(6, 0.0336)
6 6
Pr Y 5 0.0336 0.9664 0.0336 0.9664 2.4975 107
5 6 0

5 6
3 (b) Let X be the number of citizens who will vote on the Election Day.
X ~ b(200, 0.45)
Since n>30, 200(0.45) = 90 > 5, 200(0.55) = 110 > 5 and 0.1 < p < 0.9, normal
approximation can be used.
99.5 90
Pr X 100 Pr Z Pr( Z 1.35) 0.0885
200(0.45)(0.55)

3 (c) Let X be the number of customers coming to the company per day
Then X ~ Po(4)
40 41 42 43 44
Pr X 5 e4 0.6288
0! 1! 2! 3! 4!
Let Y be the number of days that branch A has less than 5 customers per day
Y ~ b(7, 0.6288)
Pr Y 6 7 C7 0.6288 7 C6 0.6288 1 0.6288 0.1995
7 6

 AMA1501 Examination 2012/2013 Semester 1 Outline Suggested Solution

4 (a) Let X i be the score of mathematics competence test of Faculty i student

82 9 2
X A X B ~ N 86 80,
10 10
1 Pr 5 X A X B 5 1 Pr 2.89 Z 0.26
1 0.3974 0.00193
0.60453
4 (b) Let X be the amount of expenditure in an invoice ($), X ~ N , 2 n
H 0 : 240
H1 : 240
0.05
Critical region: t t0.05;11 1.796
280 240
Under H 0 , test statistic t 7.698
18 12
Decision: reject H 0
4 (c) Let p be the population proportion of students who would like to study
complementary course A.
H 0 : p 0.3
H1 : p 0.3
0.01
Critical region: z z0.01 2.33
180
p
500
0.36 0.3
Under H 0 , test statistic z 2.93
0.3 0.7 500
Decision: Reject H 0
4 (d) Sample mean number of cars passing through a junction = 565 200 2.825
H 0 : number of cars passing through a junction follows a Poisson distribution
H1 : number of cars passing through a junction does not follow a Poisson
distribution
0.05
Number of cars 0 1 2 3 4 5 6 7
Oi 18 28 43 40 36 23 12 0
Ei 11.86 33.51 47.33 44.57 31.48 17.79 8.37 5.09

Critical region: 2 12.592, 8 1 1 6

Oi Ei
2

Under H 0 , test statistic 2 13.785

Ei
Decision: Reject H 0

 AMA1501 Examination 2012/2013 Semester 1 Outline Suggested Solution

5 (a) Let pmale and p female be the population proportion of male and female,
respectively, participating in company activities.
p male 72 100 p female 45 80 p 72 45 100 80 117 180
H 0 : pmale p female
H1 : pmale p female
0.05
Critical region: z 1.645
72 45

Under H 0 , test statistic z 100 80 2.2014
117 63 1 1

180 180 100 80
Decision: Reject H 0
5 (b) Let D be the difference in computational time (d = new existing)
D ~ N D , D2 n
d: -9 -13 -6 -8 -13 -17 -14 -8 -16
104
d 11.5556
9
9 1324 104
2

sd 3.9087
9 9 1
H 0 : D 0
H1 : D 0
0.05
Critical region: t t0.05;8 1.86
11.5556 0
Under H 0 , test statistic t 8.869
3.9087 9
Decision: Reject H 0
5 (c) H 0 : grade of employees and their opinion are independent
H1 : grade of employees and their opinion are not independent
0.05
Critical region: 2 9.488, 3 1 3 1 4
Expected frequencies:
Disagree Neutral Agree Total
Senior management 14.80 14.20 19.00 48
Middle management 23.74 22.78 30.48 77
Frontline staff 35.46 34.02 45.52 115
Total 74 71 95 240
O Ei 23.2399
2

Under H 0 , test statistic 2 i

Ei
Decision: Reject H 0

 AMA1501 Examination 2012/2013 Semester 1 Outline Suggested Solution

6 (a)(i) 13 206725 450 5830

b 2.9391
13 17250 450
2

5830 450
a 2.9391 346.7241
13 13
y 346.7241 2.9391x
6 (a)(ii) 13 206725 450 5830
2

R
2
0.31
13 17250 450 2 13 2661150 5830 2

69% variation in weekly sales cannot be explained by the fitted equation on
weekly advertising expenditures.
6 (b)(i)
Sales 5.5957 15.5804 Newspaper+4.1866 Coupon

6 (b)(ii) a 0.9438 2144.5875 2024.0617

b 2144.5875 2024.0617 120.5258
c2
d 12 2 1 9
e 12 1 11
2024.0617
f 1012.03
2
120.5258
g 13.3918
9
1012.03
h 75.5712
13.3918
6 (b)(iii) H 0 : 1 2 0
H1 : at least one i 0
0.05
Critical region: f F0.05;2,9 4.26
Under H 0 , test statistic f = 75.5712
Decision: Reject H 0

6 (b)(iv) H0 : 2 0
H1 : 2 0
0.01
Critical region: t t0.005;9 3.25 and t 3.25
4.1866
Under H 0 , test statistic t 4.43
0.9450
Decision: Reject H 0