SOLUTIONS are in RED

Solution to Individual Assignment #1 Winter 2008

Sections A,D & H
Question -1
A)
The weights (in pounds) of a sample of 36 individuals were recorded and the
following statistics were calculated.
Mean = 160, Mode = 175, Median = 170 Range = 60 and Variance =324.

a) Comment on the shape of the distribution.

Comparing measures of central locations;
Since Mode > Median>Mean => the dist is skewed to the left
B)
Based on the following sample data on X; weight gain in pounds:

X
5
3
7
9
2
4
6
8
Mean =5.5 and Std = 2.449

b) Comparing dist A with dist. B which distribution has less

variation(more consistency)?
c) Using Coefficient of relative variation
d) CRVa= 18/160*(100)=11.25%
CRVb=2.449/5.5*(100)=44.53%. Dist A has less variation.

Question-2
The following data are the 3-years annualized % investment returns by the
25 sample funds:
16.5 14.3 14.3 13.9 13.8 11.2 11.1 10.8 11.1
13.1 12.8 12.1 12.0 11.8 10.8 10.7 10.8
11.6 11.4 11.3 11.3 11.2 10.8 10.6 10.6.
(Note: X = 299.9 and  X² = 3652.95)
 a-Construct a stem and leaf display for the returns.
With Leaf Unit = 0.10

10 6678888
11 1122334
11 68
12 01
12 8
13 1
13 89
14 33
14
15
15
16
16 5
OR
with leaf unit =1

Stem-and-Leaf Display

Stem
unit: 1

10 6678888
1122334
11 68
12 018
13 189
14 33
15
16 5
b-Compute measures of central location.

Mean X = 11.996
Location of median =0.5(25+1)= 13th score from the begging where data are
ranked from lowest to highest.
Median =11.30 and no mode.
c-Compute the sample variance and the sample standard deviation.
d-Sample variance = 1/24 (X²- (X)²/25)
e- =1/24 (3652.95-299.9²/25) =2.3074
f- and Std=√2.3074 = 1.519
g-Find the Inter Quartile range and construct a Box Plot for the returns
Q1=10.80 Q3= 12.95

h-IQR = 12.95 – 10.80=2.15. 1.5*2.15=3.225

i-LIF= 10.80 -3.225=7.575
j-UIF=12.95+3.225=16.175 One potential outlier at 16.50
k-

10.5 11.5 12.5 13.5 14.5 15.5 16.5

C2

7.575 16.175
l-
m-Comment on the shape of the distribution, is there any outliers?
n-
o-The dist. Is skewed to the right. Yes one outlier at X= 16.5
Question -3
Suppose that the distribution of the prices of new homes built in the a
country was approximately bell-shaped., with a mean of 82,000$ and a
standard deviation of 26,000$.
a- Describe the distribution using the properties of the empirical rule.
b-
68% between 81948 108000
95% between 30000 134000
99.70% between 4000 160000

b- If a new house was priced half a standard deviation above the mean, how
much did it cost? 95000
c- Calculate the percentage of the prices of new homes falling more than
one standard deviation below the mean. 16%

Question-4

One of the major measures of the quality of service provided by any

organization is the speed with which it responds to customer complaints. A
large carpet company was receiving complaints about the installation of
carpets. During a six months period, the number of waiting days between
the receipt and resolution of a complaint is given by the data in table below.
68 33 23 20 26 36 22 30
52 4 27 5 10 13 14 1
25 26 29 28 29 32 4 12
5 26 31 35 61 29

a- Construct a frequency distribution table

for the “Carpet Data”, using 7 classes and starting with 0.
bin
Frequency
0 -10 6
1O -20 4
20 - 30 12
30 - 40 5
40- 50 0
50 - 60 1
 60 -70 2

c- What is the minimum waiting days for the top 10% of customers with
complaints about the installation .

Location of the 90th percentile =.90(30+1)=27.90th

The 90th percentile= 36+0.90(52-36)=50.2

Using mean and the standard deviation show the interval containing at least
75% of waiting days.
According to the Chebychef’s rule
75% are between mean ±2std ,
25.2 ±2(18.85) = -6.5 to 56.90
or ( 0. to 56.90 )

.
Question #5

Use a two way table,

first find ??

S S¯ total

P 0.51 0.19 0.70

P¯ 0.09 0.21 P (P¯ ) = ??=0.30

total 0.60 0.40 1.00

P( P | S) =0.85 and P(S)= 0.60 are given

P( P and S)= P( P | S) *P(S)
=> P(P and S)=0.85*0.60=0.51
P( P¯ and S) = 0.60 - 0.51 = 0.09
To find ??
We have P( S¯ | P¯ ) = 0.70 => P( S| P¯ ) = 1-0.70=0.30
(complement rule)
P(P¯ ) = P( P¯ and S)/ P( S| P¯ )=> P(P¯ )=0.09/0.30
therefore P(P¯ )= ??=0.30
To do parts a, b and c complete the table first..
a)
P(P) = 0.70
b)
P( S | P) =0.51/0.70 = 0.7286
c)
Yes, because P( S | P) = 0.7286 has increased from P( S) = 0.60.