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MATH6115

MATH6115 – Applied Research and Linear Algebra

A game distributor company conducted a market survey on the scores gained from playing a newly released
game in a group of 10 students (Group A) and another group of 10 students (Group B). The data (simplified)
are given as follow:
Group A Score Group B Score
Student No. Student No.
1. 95 1. 85
2. 60 2. 80
3. 65 3. 90
4. 85 4. 95
5. 90 5. 95
6. 75 6. 75
7. 65 7. 80
8. 50 8. 85
9. 65 9. 80
10. 70 10. 80

1. Calculate the mean, median, variance, standard deviation, and skewness coefficient for group A.
You can use Excel.
2. Calculate the mean, median, variance, standard deviation, and skewness coefficient for group B.
You can use Excel.
3. What can you conclude based on the results? (e.g., which one is better at playing the game, how
much better?)

4. From past experience, an investment management company believes that under the current
economic condition, a customer will invest in tax-free bonds with a probability of 0.6, will invest
in mutual funds with a probability of 0.3, and will invest in both tax-free bonds and mutual
funds with a probability of 0.20. Find the probability that a customer will invest:
a. in either tax-free bonds or mutual funds.
b. in neither tax-free bonds nor mutual funds.

5. In a study to investigate the relationship of hypertension and smoking habits, the following data
were collected from 200 individuals.
Non-smokers Moderate Heavy smokers
smokers
Hypertension 30 45 35
Non-Hypertension 50 25 15

If one of these individuals is selected at random, find the probability that a person is:

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MATH6115

a. experiencing hypertension, given that the person is a smoker

b. experiencing hypertension, given that he person is a non-smoker
c. a non-smoker, given that the person is experiencing no hypertension
d. a smoker, given that the person is experiencing hypertension
e. What can you conclude from the above conditional probability results?

6. Answer the following questions:

a. A student club has 10 female members and 5 male members. If a committee of 4 is selected
at random, find the probability of having 2 females and 2 males in the committee.
b. A student club has 15 members. If a committee of 4 is selected at random, in how many
ways can we form the committee?
c. A student club has 15 members. If a committee of 4 consisting of president, vice president,
treasurer, and secretary, is selected at random, in how many ways can we form the
committee?

7. A certain type of storage battery lasts, on average, 3.0 years with a standard deviation of 0.5
year. Assuming that battery life is normally distributed, find the probability that a given battery
will last less than 2.3 years.

8. Use correlation and multiple linear regression to answer the following case.
a. Explain the difference between simple linear regression and multiple linear regression. (5
marks)
b. What is the R2 value of the multiple linear regression analysis? Explain what the R2 value
indicates. (5 marks)
c. With a significance level of 5%, determine which independent variables had significant effect
on the dependent variable. (5 marks)
d. What is the final regression equation (formula)? (5 marks)
e. Predict the house price value for a house located at a neighborhood with land size of 120,
building size of 100, crime rate of 1%, number of bedrooms of 3, and high quality facilities
with rating 9. (5 marks)

The following table lists several factors contributing to a house price.

Land size (in Building size Number of Crime rate Neighborhood Price (in
meter (in meter bedrooms facility rating million
square) square) (from 1 to 10) Rupiah)
80 60 2 2% 7 1000
80 60 2 0.5% 9 1200
60 60 2 3% 7 700
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120 100 3 1% 8 1600

120 100 4 1% 8 1800
70 50 2 1% 9 800
80 80 2 0.5% 6 1100
90 80 2 0.5% 5 1000
90 80 2 0.5% 7 1200
100 80 3 1% 7 1100