MAY

1
(a)

Hourly Frequency Midpoint(x) f �x Cumulative f ( x - x)2

Wages frequency

0 – 19 5 9.5 47.5 5 9331.2

20 – 39 10 29.5 295 15 5382.4

40 – 59 13 49.5 643.5 28 133.12

60 –79 16 69.5 1112 44 4515.84

80 – 99 6 89.5 537 50 8125.44

50 2635 27488

2635
(i) Mean = = 52.7 []
50
�25 - 15 �
(ii) Median = 39.5 + � �20 = 39.5 + 15.38 = 54.88 []
� 13 � �

�f ( x - x )
2
(iii) Sample s.d. (s) = 27488 []
= = 23.69
n -1 50 - 1

(b) Let B be the event that a customer will invest in tax-free bonds
Let M be the event that a customer will invest in mutual funds
P ( B) = 0.6 , P( M ) = 0.3 , P ( B �M ) = 0.15

(i) P( B �M ) = P( B ) + P( M ) - P( B �M )

= 0.6 + 0.3 - 0.15 = 0.75 []

(ii) P( B �M )' = 1 - P( B �M ) = 1 - 0.75 = 0.25 []

1
2 (a) n = 10, p = 0.2 q = 0.8

(i) P( X = 2) = 0.302 � [2 marks]

(ii ) P ( X �2) = 1 - [ P ( X = 0) + P ( X = 1) ]

= 1 - [ 0.107 + 0.268]

= 1 - 0.375 = 0.625 � [3 marks]

(iii ) E ( X ) = np = 10 �0.2 = 2 � [1 mark ]

Var ( X ) = npq = 10 �0.2 �0.8 = 1.6 � [1 mark ]

s.d .( X ) = Var ( X ) = 1.6 = 1.26 � [1 mark ]

2(b)

(i ) m =3
P ( X = 4) = 0.1680 2 marks �
��
� �

(ii ) m =6
P ( X > 1) = 1 - [ P ( X = 0) + P ( X = 1) ]
= 1 - [ 0.0025 + 0.0149]
= 1 - 0.0174
= 0.9826 3 marks �
��
� �

(iii ) m = 9 2 marks �
��
� �

2
 80
( a ) (i ) pˆ = = 0.33 �[1mark]
240
(ii ) n = 240
99% z - value = 2.58
pˆ (1 - pˆ )
pˆ �z
n
0.33(1 - 0.33)
0.33 �2.58
240
= 0.33 �0.08
( 0.25 , 0.41) � [3 marks]

(iii) The probability is 0.99 that the true population proportion lies in the range 0.25
to 0.41 [

(b) z = 1.96 E = 0.0025 pˆ = 0.01

2 2
�z � �1.96 �
n = pˆ (1 - pˆ ) � �= 0.01(1 - 0.01) � �= 6085.0944
�E � �0.0025 �
n = 6086 � [3 marks]

(c) H 0 : m1 = m 2
H1 : m1 �m2

x1 - x2 1190 - 1230
z= = -2.42
Test statistic: s2
s 2
= 902 1202
1
+ 2 +
n1 n2 100 75

 
= .005 = 0.005
2 2

  ­2.58                 0           2.58  
Conclusion: Since -2.58 < Z cal < 2.58 , we do not reject H 0 ie. m1 = m2 at the 1% level of
significance.
[]
4

3
(a) H 0 : m = 300, H1 : m > 300 df = n - 1 = 20 - 1 = 19

X -m 315.40 - 300
t=
s = 43.20 = 1.593
n 20

 = .01

      0               t = 2.539 

Conclusion: Since tcal < 2.539 , we do not reject H 0 , ie. m = 300 at the 1% level of
significance. []
(b) H 0 : There is no relationship between a person’s location and the number of years
of college education
H1 : There is a relationship between a person’s location and the number of years of
college education

No College Four Year Advanced Total

Degree Degree

Urban 15 12 8 35
(10.50) (14.70) (9.80)

Suburban 9 20 13 42
(12.60) (17.64) (11.76)

Rural 6 10 7 23
(6.90) (9.66) (6.44)

Total 30 42 28 100

�(O - E ) 2 �
c 2 = �� � = 1.929+ 0.496 + 0.331+ 1.029 + 0.316 + 0.131 + 0.117
� E �
+0.012 +0.049 = 4.41 d.f. = (3-1)(3-1) = 4

Because the computed value of chi-square lies in the region to the left side of 9.488,
the null hypothesis is accepted at the 0.05 level. We conclude there is no
relationship between a person’s location and the number of years of college
education. []
5

4
(a)
m = 200
s = 50

(i ) P ( X < 90 )
�X - m 90 - 200 �
= P� < �
�s 50 �
= P ( Z < -2.2 )
= 0.5000 - 0.4861
= 0.0139
= 1.39% ��
3 marks �
� �

(ii ) P (225 < X < 275)

�225 - 200 X - m 275 - 200 �
P� < < �
� 50 s 50 �
P (0.5 < Z < 1.5) = 0.4332 - 0.1915
= 0.2417
= 0.2417 �100 = 24.17% � [4marks]

(iii ) P ( X < a ) = 0.95

� a - 200 �
P �Z < �= 0.95
� 50 �
a - 200
= 1.28
50
a = 200 + 1.28 �50
a = 264 � [4 marks]

(b) m = 167, s = 27 n = 36
� �
�
163 - 167 X - m 170 - 167 �
( )
P 163 < X < 170 = P �
� 27
<
s
<
27 �
�
[]
� 36 n 36 �
� �
= P ( -0.89 < Z < 0.67 ) = 0.3133 + 0.2486 = 0.5619

5
 x y x2 y2 xy
10 14 100 196 140
11 16 121 256 176
12 16 144 256 192
13 20 169 400 260
14 25 196 625 350
12 19 144 361 228
17 38 289 1444 646
15 27 225 729 405
104 175 1388 4267 2397

(a) Find the equation of the least squares regression line

Least squares regression line, y = a + bx ,

n�xy - ( �x ) ( �y ) 8(2397) - (104)(175) 976

b= = = = 3.39
n�x 2 - ( �x ) 8(1388) - (104) 2
2
288

a=
�y - b ��x � 175 - 3.39
� �=
104
= -22.2
n �n � 8 8
� �

y = -22.2 + 3.39 x []

(b) y = -22.2 + 3.39(25) = 62.55 M []

(c)
n�xy - �x�y
r=
n�x 2 - ( �x ) ��
� n�y 2 - ( �y ) �
2 2

� �� �

8(2397) - (104)(175) 976 976

= = = = 0.97 []
[8(1388) - (104) ][8(4267) - (175) ]
2 2
[ 288] [ 3511] 1005.57

There is a strong positive relationship between the advertising expenditure (x) and
the monthly sales(y) []

(d) Coefficient of Determination: r2=0.94 []

94% of the variation in monthly sales(y) is due to changes in advertising

expenditure (x) []