College of Statistical and Actuarial Sciences

University of the Punjab, Quaid-i-Azam Campus, Lahore

Special Examination 2019

BS Actuarial Science (Replica)
Semester–III (Session 2017-21)
Course: Statistics III Time allowed: 3 hrs
Note: Attempt all questions Max marks: 75

Q1. For a population N = 6, the values of Yi are 2, 3, 5, 6, 8, 9

i) Compute the population mean µ and population standard deviation σ. (2+3)

ii) Select all possible simple random samples of size 2 without replacement. (2)
iii) Form a sampling distribution of ӯ. (5)
iv) Calculate the sampling error and comment. (5)

Q2a. Select a random sample of size 10, using a random number table, from a Poisson distribution
with parameter µ = 4. (10)

b. Car batteries produced by company A have a mean life of 4.3 years with a standard deviation of
0.6 years. A similar battery produced by company B has a mean life of 4.0 years and a standard
deviation of 0.4 years. What is the probability that a random sample of 49 batteries from company A
will have a mean life of at least 0.5 years more than the mean life of a sample of 36 batteries from
company B? (10)

Q3. For a small population N=6 houses, the characteristic of interest is whether the house is occupied
by owner or rental. The type of occupation for all of 6 houses is listed below;

i. Compute proportion of owners in population. (2)

ii. Enlist all possible samples of size 3 by without replacement and prove that (3)
a. 𝑝̂ is an unbiased estimator of the population proportion P (5)
b. variance of sampling proportion is given by (5)
𝑁−𝑛 𝑃𝑄
var(𝑝̂ ) = ( 𝑁−1 ) 𝑛

Q4. From a list of 3042 names and addresses, a simple random sample of 200 names showed on
investigation, 38 wrong addresses. Estimate the total number of addresses need correction in the list.
Find the standard error of this estimate and construct 95% confidence interval around the estimate.

(10)
Q5. A hospital administrator wishes to estimate the mean weight of babies born in the hospital. How
large a sample of birth records should be taken if she wants a 99% confidence interval i.e. 1 pound
wide? Assume that a reasonable estimate of σ = 1 pond. What sample size is required if the confidence
coefficient is lower to 0.95? (10)