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# Chapter 2 In order to project the future of the business, a restaurant owner collect opinions from their customers by sending

Answer: Shape-the distribution is approximately symmetric with a single peak, making it unimodal. Centre-the centre of the distribution is close to the single peak. The bin values can be added up as follows: 3+3+8+10+5+2=31. The median occurs to the 15th data point. Fourteen data points are contained in the first three bins. The 15th data point is therefore contained in the 4th bin. Spread- the spread is determined from the range of data, high minus low, 90-60=30. Chapter 6 Please consider whether the following statements are true of false. 1. If an event is unlikely to occur, its probability could be negative. 2. The probability of the set of all possible outcomes must be 1. 3. For event A and B, the formula P(A and B)=P(A)*P(B) is always correct. Answer: F,T,F Chapter 7 Please compute the correlation coefficient Suppose the data pairs are: X 2 14 5 Y 7 4 9 Answer: r=0.206 Chapter 7

20 12

9 13

1.Casio produced 1 million electronic watches in April 2012. Checked 1000 electronic watches by random sampling without repetition, the Casio drew out the data that the failure rate was 2% . If we assumed the pass rate would be 99.73%. Please calculate the range of variables of failure rate.

0.68%

Chapter8 2.A school randomly samples 10 male students within the all male students. Their average height is 170CM, standard deviation is 12CM. What is the percentage that the male students' average height will be sure between the 160.5CM---179.5CM t= =160.5 ( Or =179.5 t=2.503 F(t)=98.76% Chapter9 3.A automobile manufacturer wants to analysis the correlation between the quantity of shipment and the quantity of automobile ownership. They have investigated a region. Year Quantity of Shipment (x) Quantity of Automobile (y) (Thousand )

## (million tons per kilometers )

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

410 450 560 600 640 680 750 850 980 1100

2.7 3.1 3.5 4.0 5.2 5.5 5.8 6.0 6.5 7.3

Please calculate the correlation coefficient. (r=0.956) <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><> 1 What is the difference between contingency tables and cross tabulation? 2 What is the difference between interval and ordinal? 3 In book page 97, Table 5.4, how to get the number of (MidPt- Mean)2 ? 4 What is the table percentages?

5 How to calculate the percentile? Is there any difference between sample and population? 6 Which of the following correlation properties is right? (In assignment) a Correlation is always between -2 and 2. b Correlation treats X and Y unsymmetrical. c Correlation measures whether the two variables are linear association. d Correlation has no units. 7 What is the type of the data? "The number of students in a statistics course" "The letter grades received by students in a computer science class" <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>

Chapter 1What's

statistics

Chapter 2Customers' satisfaction e.g. very satisfactory satisfactorydissatisfactoryvery dissatisfactorybelongs to A. Nominal B. Ordinal C. Interval D. Ratio Chapter 3: What is the sampling?

different

between

stratified

sampling

and

cluster

Chapter 4: Talk about the difference between bar chart and histogram. Chapter 5: Give the answers of mean, median, mode, range, variance and standard deviation. (35 40 45 30 35 45 50 35 40 35) Chapter 7: what are the features of correlation-r?

Chapter 8: What are right below? a, if events A and B are mutually exclusive, P(A+B)=P(A)+P(B) b, P(A+B+C)=P(A)+P(B)+P(C)-P(AB)-P(AC)-P(BC)+P(ABC) c, P(AB)=P(B) P(A|B) (P(A)>0, P(B)>0) d, P(A|B)= P(AB)/P(B) (P(A)>0, P(B)>0) Chapter 9: Suppose the heights of employees istributed with a mean of 171cm 5cm. what is the probability of

in one company is normally d and a standard deviation of employees height less than 17

6cm? <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><> Chapter 1 Generally what are statistics used for? Chapter 2 The classification of student hobby in university of Windsor (sport, music, computer and other) is an example of A a categorical random variable. B a discrete random variable C a continuous random variable D a parameter Chapter 3 The administration of a large university is interested in learning about the types of wellness programs that would interest its employees. To do this, they plan to survey a sample of their employees. Suppose that there are five categories of employees (administration, faculty, professional staff, clerical and maintenance) and the university decides to randomly select ten individuals from each category. This sampling plan is called A Systematic Sampling B Simple Random Sampling C Stratified Sampling D Cluster Sampling E Convenience Sampling Chapter 4 What is pie chart? Chapter 5 Table 5-1 shows us the annual temperature in China from 2005 to 2010. Annual Temperature in China 2005 2006 2007 2008 2009 2010 Tempera 8.2 7.5 10.4 9.7 8.8 10.0 ture (degrees Celsius) 1) What are the Mean, Median, and Mode for these data? 2) Would you use the mean or the median to summarize the center of this distribution? Why?

Chapter 6 Event A and B are independent, P (A) = 0.9 and P (B) =0.5, what is P(AB)? A. 0.9 B. 0.45 C. 0.5 D. 0.3 E. None of above Chapter 7 Which of the following correlation properties is right? A. correlation is always between -2 and 2. B. correlation treats x and y unsymmetrically. C. correlation measures whether the two variables are linear association. D. correlation has no units. Chapter 9 Assume that the number of students entering library comply with Poisson Probability Distribution. The probability of none students at the average one hour entering library is 0.01, please compute the probability of at least two students at the average one hour entering library. Solution: Known F(X)=u^x e^(-u)/x! , When X=0 ; F(X)=0.01 So F(X)=e^-u=0.01 u= 2ln10 The probability of at least two students 1-P(X=0)-P(X=1) =1-0.01(1+2ln10)=0.944 .

Chapter 10 The sampling of the population X as follows: 2.1, 5.4, 3.2, 9.8, 3.5, So the sample mean________, the sample variance_________ Solution: 4.8 22.716 <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><> Q 1. What are the three steps of doing statistics? Ans: The three main steps involved in the statistics process are.

1. Plan: Clearly defining and understanding the objective prior to starting will save a lot of work and time. You must know the direction where you are heading. 2. Do: Calculations are required in this step and the making of graphical displays is also important. 3. Report: According to this step you need to explain others what you have understood from the results.

Q 2. What are the scales of measurement? Which scale is always numeric? What is the difference between ratio and interval? Ans: The four scales of measurement are: Nominal, Ordinal, Interval and Ratio. Interval and ratio data are always numeric The difference is that in ratio data zero means zero which makes it possible for us to divide the data, whereas in interval data zero does not mean zero and it does not start from 0. Q 3. A survey was conducted amongst the students living in University residence. 80 students were selected to respond on an online questionnaire about the quality of food at market place. 60 students responded to the questionnaire with their response. a . Is the sampling frame correct? If NOT Why? b. What number of students account as subjects and respondents. Ans: (a). The sample technique is not correct because it is open to those who have access to the internet. Anyone who doesn't have access to the internet cannot participate. Also, the students selected were not randomly selected from the population therefore, they may not represent the population. (b). Students who responded to the survey are the respondents while the subject are students selected by the surveyor. Q 4. Construct a Bar chart using the following information: 40% of MOM students opted for Financial Accounting, 20% Logistics, 15% English, 10% HRM and 7% statistics and 8% others. Ans: Subjects Percentage (%) Financial Accounting Logistics English HRM 40 20 15 10

Statistics Others

7 8

Subjects
45 40 35 30 25 20 15 10 5 0 Financial Accounting Logistics English HRM Statistics Others Subjects

## Q 5. Define the skewness of Barchart.

70 60 50 40 30 20 10 0 a b c d e f g h i j k l m n o p q r s t

a. b. c. d.

a. b. c. d.

## P(A)+P(B)+P(C) P(AC) P(A)+P(B)-P(ABC) P(AB)

Ans: P(AB) Q 7. A researcher was assuming that the students who are good in statistics are also good in Logistics. So he randomly selected 25 Midterm marks of MOM students for both statistics and Logistics and compared the results. The data is given below

Statistics 95 90 84 82 70 72 80 65 81 75 23 88 87

## (Total marks 100) Logistics (Cont.) Statistics 88 66 94 32 90 76 85 34 75 56 68 76 78 98 70 55 91 67 88 76 34 46 98 12 98

(Cont.) Logistics 56 34 79 43 45 87 79 64 76 67 44 77

a) Make a scatter-plot for these data b) Describe the direction , form and strength of the plot c) Find the correlation

Ans (a)

Logistics
120 100 80 60 40 20 0 0 20 40 60 80 100 120

Logistics

(b) The pattern is running from lower left to upper left, therefore it is positive. (c)

## ((95-67.4)(88-72.3)+(90-67.4)(94-72.3)+(. ((95-67.4)+(90-67.4)..) ((88-72.3)+(94-72.3).)

r= 8033.48 10653.58

r = 0.754

Q 8. A linear models made to predict the monthly sales of t-shirts fronm the average price(\$/unit) charged by sample of stores is : Sales = 113,657.4 - 17,481.5 price a) What is the explanatory variable ? b) What is the response variable ? c) What does the slope mean in this context ?

Ans: (a) Price is helping to predict the sales, hence PRICE is the explanatory variable in this context. (b) The sale of t-shirt is being predicted , hence SALES is the response variable. (c) The slope is negative in the given linear model. Hence for every extra dollar increase, there will decrease in sales by 17,481.5

## Q 9. Last year in Windsor 40 road accident were reported. If the number

of road accident for the last 12 months is independent and the mean has not changed, what is the probability of having a month in Windsor with each of the following? a) No Accident? b) Exactly 1 Accident?

Ans: (a) (40 accidents/12 months) = 2.3 accidents/month P(No Accident) = P(X=0) = e x 2.3 = 0.095 0! (b) P(1 Accidents) = P(X=1) = e x 2.3 = 0.223 1! Q 10. In a class of 70 students, the mean marks are 350 and standard deviation of 100. What is the standard error (SE) for the mean of this sample of students?

Ans:

s=100 , n= 70

## SE = 100 70 SE = 11.95 <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>

1, A company started and managed by business students is selling campus calendars. The students have conducted a market survey with the various campus constituents to determine sales potential and identify which market segments should be targeted. (should they advertise in the alumni magazine and the local newspaper?) the following table shows the results of the market survey. Buying likelihood unlike students Faculty/stuff alumni town Residents total 197 103 20 13 333 Moderately likely 388 137 18 58 601 Very likely 320 98 18 45 481 total 905 338 56 116 1415

a) b) c) d) e) f)

What percent of all these respondents are alumni? What percent of these respondents are very likely to buy the calendar? What percent of the respondents who are very likely to buy the calendar are alumni? Of the alumni, what percent are very likely to buy the calendar? What is the marginal distribution of the campus constituents? What is the conditional distribution of the campus constituents among those very likely yo buy the calendar? g) Does this study present any evidence that this company should focus on selling to certain campus constituents?

2, Canadian weekly earnings Canadian average weekly earnings classified by province and territory are given in the table for 2007 a) Calculate the mean earnings for the year 2007 b) Calculate the standard deviation for the year 2007 c) Calculate the coefficient of variation for 2007 d) Calculate the z-scores for Ontario and Nunavut and interpret their meaning Provincial average weekly earnings in 2007 Newfoundland and Labrador Prince Edward island Nova scotia New Brunswick Quebec Ontario Manitoba Saskatchewan Alberta British Columbia Yukon Northwest territories Nunavut 714.65 628.90 673.38 707.93 725.29 803.46 701.93 724.03 835.52 761.01 882.47 1004.63 948.68

3, Telemarketers continue to attempt to reach consumers by calling land-line phone numbers. According to estimates from a national 2003 survey, based on face to face interviews in 16,677 households, approximately 58.2% of U.S. adults have both a land line in their residence and a cell phone, 2.8% have only cell phone service but no land line, and 1.6% have no telephone service at all. a. Polling agencies wont call cell phone numbers because customers object to paying for such calls. What proportion of U.S. households can be reached by a landline call? b. Are having a cell phone and having a landline independent? Explain.

4, The share prices of Toronto Dominion Bank and Royal Bank of Canada on the Toronto Stock Exchange for 10 days in 2008 are given in the table. In order to investigate the relationship between these stocks for investment purposes, draw a scatterplot and calculate the correlation coefficient between them, showing the intermediate steps in your calculation. TD Bank RBC 11/21/2008 41.3 36.48 11/20/2008 43.57 35.65 11/19/2008 49.93 41.19 11/18/2008 52.18 43.54 11/17/2008 51.75 43.36 11/14/2008 53.57 44.5 11/13/2008 54.58 46.25 11/12/2008 52.95 43.91 11/11/2008 55.86 46.45 11/10/2008 56.81 47.38 5, A farmer has 100 kilograms of apples and 50 kilograms of potatoes for sale. The market price for apples(per kilogram) each day is a random variable with a mean of 0.5 dollars and a standard deviation of 0.2 dollars. Similarly, for a kilogram of potatoes, the mean price is 0.3 dollars and the standard deviation is 0.1 dollars. It also costs him two dollars to bring all the apples and potatoes to the market. The market is busy all the eager shoppers, so we can assume that he ll be able to sell all of each type of produce at that day s price. a. Define your random variables, and use them to express the farmer s net income. b. Find the mean of the net income. c. Find the standard deviation of the net income. d. Do you need to make any assumptions in calculating the mean? How about the standard deviation?

6, In 2008, the income per capita measured in U.S. dollars was \$31,639 in Canada and \$40,807 in Norway. Let us assume that income per capita is Normally distribution with a standard deviation equal to 31% of the mean for each country. You select a random sample of six people in Norway and six people in Canada. a. What is the probability that the mean income of your Canadian sample is above \$40,807? b. What is the probability that the mean income of your Norwegian sample is above \$31,639? c. What would be the effect of not assuming that the income per capita is Normally distributed? <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>

Chapter 1
Statistic is a way of reasoning, along with a collection of tools and methods, designed to help s understand the world.

Chapter 2
A few of the variables for which data were collected in the RBC Financial Group study include age, gender ,income ,and number of hours spent shopping online per month. Which of variable s is categorical? A) Number of hours spent shopping online B) Age C) Gender D) Income E) None Answer: C) Gender

Chapter 3
Suppose that there are five categories of employees ( Director, Regional Manager, Assistant, Internship and Co-OP) and the company decides to randomly select ten individuals. from each category.This sampling plan is called Stratified Sampling.

Chapter 4

This table indicates different genders of the graduate students in two Master Programs. Full-time Part-time Total Men 50 20 70 Women 60 30 90 Total 110 50 160 Question: What percent of part-time masters are women? Answer: 30/50=.6=60%

Chapter 5
University of Windsor MoM Faculty received 50 applications from prospective students. The application form contains information of candidate that their GMAT score. However, the necessary data on candidates have not yet been entered in database. The program director estimate the value of the population parameters of interest based on sample statistics. 10 candidates selected will be used. GMAT score of 10 candidates : 600 620 630 648 600 688 700 647 684 710 Question: Please use the point estimation knowledge to calculate the mean scores and standard deviation of the candidates. Answer: Mean scores : Xi=6527

x Xi/10
6527/10 652.7 Standard deviation : S= Xi-

x )2 /

## 9= 2704+1069.29+515.29+22.09+2777.29+1246.09+2237.29+32.49+979.69+32 83.29 /9=14866.81/9 1651.87/9 40.6

Chapter 6

A random survey of autos parked in the student and staff lots at University of Windsor classified the brands by country of origin as seen in table. Question: What is the probability that the students are Asian? Student Staff Total American 30 10 40 Canadian 90 50 140 Asian 50 20 70 Total 170 80 250 Answer: 50/170=.29=29%

Chapter 7
Three correlation conditions is Quantitative Variables Condition, Linearity Condition and Outlier Condition.

Chapter 8
The regression equation is y=b0+b1x

Chapter 9
In Devonshire Mall , customers buy a lottery ticker for \$1 and choose three numbers , each form zero to nine.They also must select the play type, which determines what combinations are winners. In one type of play, they win if they match the three numbers in any order, but the payout is greater if the order is exact. For the case where all three of the numbers selected are different ,the probability and payouts are: Probability Payout Exact 1 in 10000 \$2800 Any Order 5 in 10000 \$500 Question: Fine the amount a player can expect to win. Answer: 1/10000*2800+5/10000*500=0.28+0.25=0.53

Chapter 10
The Central Limit Theorem( CLT) states that the sampling distribution model of the sample mean( and proportion) is approximately Normal for large n,

regardless of the distribution of the population, as long as the observations are independent. ! <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>
Q: 1) What is Statistics? List some of the practical applications of it in the business world that you can think of. Statistics is the discipline of understanding the world around us through the collection of data, organizing it, presenting it in an understandable way and interpreting results from it. Statistics plays a significant role in business. It is used to estimate demand for a new product, how much of it to produce, predicting sales of existing and future products, determining which current products are doing well, gathering feedback from customers through surveys and in development of future products and services. Q: 2) What is the data measured over time which has an equally spaced time interval? Ans: Time Series Data Q: 3) The Odette School of Business offers Master of Management (MOM) course in various specializations. In this course the boys to girls ratio is 40:60. And the sample gender ratio was the same as that of the populations. Out of the 50 MOM course students the supervisor of TIM Hortons randomly selected 40 students. A) What is the population? B) What is the number of boys and girls in the sample? C) What kind of sampling technique is it? D) Is there any wrong with the sampling? Explain. Ans:a) the population is 50 b) Since the sample gender ratio was the same as the population, among the 40 students the number of boys are = 40 0.4 = 16 the number of girls are = 40 .6 = 24 c) Stratified sampling technique; since the surveyor sliced the population into homogeneous groups and then used random sampling. d) There is nothing wrong with the sampling since the surveyor guaranteed that the proportions of men and women within the sample match the proportions in the population. So this sample will represent the entire population properly.

Q: 4) Recently a survey was conducted to find out the opinion of Canadians of the fact

that Europe would be most preferred holiday destination. The respondents replied as below: 55 % - Agree Completely. 30% - Agree Somewhat. 10% - Neither agree nor disagree. 2%-Disagree Completely. 1.5% - Disagree Somewhat. 0.5% - Dont know. Represent the above categorical data using the best possible data chart and explain why is this an appropriate display for these data? Ans: For the above data the best possible chart is a Pie Chart and it is a below:
1.50% 2.00% 10.00%

Opinions in percentages
0.50% Agree Completely Agree Somewhat Neither agree nor disagree

30.00%

55.0000%

## Disagree Completely Disagree Somewhat

Pie chart is appropriate for this case since we have the data broken into several categories and it does a better job of comparing portions of the whole. Q:5) Calculate mean, median and mode: of the following data: 8, 4, 5,7,8,9,7,8,10,8,8,5 Ans: Mean =
+ + +++++++++ 12

= 7.25

Median: let the data items arrange in ascending order: 4,5, 5, 7,7,8,8, 8, 8, 8, 9, 10 Median is the average of middle two values: (8+8)/2 = 8 Mode: 8 occurred most frequently in the data set. So Mode is 8 Q: 6) If a box contains 8 yellow marbles, 4 green marbles and 5 black marbles, what is the probability of selecting a green marble from the box ? Ans: Here, Probability =

4 8+4+5

= 0.2352 = 23.52%

Q: 7) What is the range of correlation of co-efficient? a. 0 to 1 b. -1 to 1 c. -1 to 0 d. 1 to 2 Ans: B Q: 8) wind mobile wanted to examine whether the purchase of their service is related

to their customers monthly income or not. The linear regression is Purchase = 25.5 + 0.05 Income a) What is the explanatory variable? b) What is the response variable? c) What does the slope mean in this context? d) What do you predict the purchase to be if the average income was \$2000? e) If the total purchase turned out to be \$130 for an income of \$2000, what would the residual be? Ans: a) Income is the explanatory variable b) Purchase is the response variable c) The slope for this equation is 0.05; which means that for every extra dollar increase in the customer monthly income; purchase of wind service increase by \$ 0.05 d) Purchase = 25.5 + (0.05 2000) = \$ 125.5 e)Residual = Data Predicted = 130-125.5 = \$4.5 Q: 9) Sample Prices of different Branded handsets are given. Calculate standard deviation and variance. Handset 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ans: The formula of Variance: Brand a Brand b Brand c Brand d Brand e Brand f Brand g Brand h Brand i Brand j Price (\$ X) 35 40 20 20 15 50 30 20 35 45

## 121 121 256 361 1 121 16 196 1290

Standard Deviation = 143 33 = 11.97 So, on an average, the price of different branded handset differs by \$11.97 from each other. Q 10. At the Thomsons packaging plant when a truckload of watermelons arrives, a random sample of 180 is selected and scrutinized for any damage caused or rotten watermelons. Whole of the truckload will be rejected if more than 7 % of the sample fails to be fresh watermelons. Given that 15% of the watermelons on the truck do not meet the standard requirements. What is probability that the shipment will be accepted in anyway? Ans: Randomization condition: A random sample of 180 melons is taken from each vehicle. 10% condition: 180 is less than 10% of all watermelons. Success/Failure Condition: np =27 and nq = 153 are both greater than 10. Therefore, the sampling distribution model for p is Normal, with: p= 0.15 , q=0.85 , n= 180 and according to the formulae we have,

= (

5 85 / 8

= 0.026615

According to the Normal model, the probability that less than 7% of the melons in the sample are unsatisfactory is approximately 0.0734

## = (0.07 0.15) / 0.0266 = - 3.008

<><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>

1.Data value, no matter what kind, are useless without their( ). 2.Jim got 89 in OB exam, while Frank got 76, Jim scored 13 points more than Frank. This measurement is? A:Ratio B: Nominal C:Ordinal D:Interval 3.Canada Airline is going to survey a random sample of 250 passengers on the flight from Shanghai to Toronto on April 1st.If the clerk on charge choose 10 people in business class,15 in first class,20 in economic class randomly.What kind of sampling is this describe above?

A:Stratified Sampling B:Cluster Sampling C:Systematic Samples D:Multistage Sampling 4.____ give a quick impression of how a whole group is partitioned into smaller groups. A:Frequency Tables B:Bar Charts C:Pie Charts D:Contingency Tables 5.There is a group of sample data as=20,21,22,23,24,25,26. What is the Z-score of this group? 6.If the probability of Marina to pass the exam is 0.43,while the probability of David is 0.26,compute the probability of both Marina and David pass the exam. 7.Correlation is always between ( ) and ( ). A: -1,0 B:-1,1 C:0,1 D -1/2,1/2

8. Cars go through the crossing at the average rate of 10 cars per minute in rush hours, what is the probability of 7 cars go through the crossing in 30 seconds in rush hours ? 9. The mean of a random sample has a sampling distribution whose shape can be approximated by a normal model. The larger the sample, the better the approximation will be. This is ( )
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Chapter 1
1) Categorical data include ____ Data A. Numerical; Nominal, Interval B. Numerical; Nominal, Ordinal C. Non-numerical; Nominal, Ratio D. Non-numerical; Interval, Ratio Solution: B

Chapter 2
2) Which of the following is based on cross-sectional data? ____ A. Annual cost B. Yearly student enrollment C. Canadian employers work for full time D. The sale revenue of different departments in Devonshire Mall in January 2013

Solution: D 3) What are two conditions when selecting a random sample from an infinite population? Solution: 1. Each of the sampled elements is independent 2. Each of the sampled elements follows the same probability distribution as the elements in the population.

Chapter 3
4) By placing the appropriate letter (A-G) beside the symbol, match each symbol with its description. 1. P___ A. Sample mean 2. N___ B. Sample proportion 3. ___ C. Population size 4. ___ D. Sample size 5. S ___ E. Population mean 6. n ___ F Sample standard deviation 7. ___ G. Population standard deviation Solution: BCGAFDE

Chapter 4:
5) A new restaurant did a survey about the degree of satisfaction among 400 customers, the following data shows the result:
Degree of Satisfaction age

Dissatisfied 15 10 18 35

Slightly satisfied 23 48 27 37

Moderately satisfied 45 17 34 17

Extremely satisfied 17 25 21 11

## Under 20 20-40 40-60 Over 60 Total Percentage of each degree

a) Complete the table and compute the percentage of each degree of satisfaction. b) Which chart is an appropriate display of these data? (pie chart, bar chart, ext.) Why or why not? Solution: a)
Degree of

Dissatisfied
Satisfaction

Slightly satisfied

Moderately satisfied

Extremely satisfied

Total

## age Under 20 20-40 40-60 Over 60 Total Percentage of each degree b)

15 10 18 35 78 19.5%

23 48 27 37 135 33.75%

45 17 34 17 113 28.25%

17 25 21 11 74 18.5%

## 100 100 100 100 400 100%

Degree of satisfaction
Dissatisfied Slightly satisfied Moderately satisfied Extremely satisfied

18% 29%

19%

34%

Pie chart shows the whole group of cases as a circle. They slice the circle into pieces whose size is proportional to the fraction of the whole in each category. The pie reflects the each degree of satisfaction clearly and is an appropriate display of these data.

Chapter 5:
6) A marketing director wants to determine whether the new advertising campaign how to attracting younger customers. She has selected two samples of customers.

The first sample is selected from the customer database before the new advertising campaign. The data indicates the age in years, of the customers at the time the policy went into effect. The second sample is taken from the customers who were added after the new advertising campaign. 33 Before 30 23 After 35 44 40 31 24 52 29 40 42 34 55 28 32 25 36 26 30 34 62 34 36 38 58 40 28 45 64 28 39 60 56 25 44 42 48 29 27

## =885 =41,905 =641 =21,311

a) Calculate the mean, median and mode for the customer age in the two samples. b) Why would the insurance company like to attract younger customers?

Solution: a) Order the data sets from min to max: Before 1 2 3 4 5 6 7 8 9 10 11 12 25 29 30 33 34 34 36 38 40 42 44 45 Mean: =885/20=44.25 n=20, take the average of the two middle points. Median = (42+44)/2=43 Mode=34 After: 1 2 3 4 5 6 7 8 9 10 11 12 23 24 25 26 27 28 28 28 29 30 31 32 Mean: =641/20=32.05 n=20, take the average of the two middle points Median=(30+31)/2=30.5 Mode=28

13 14 15 48 52 55

16 17 18 56 58 60

19 20 62 64

13 14 15 34 35 36

16 17 18 39 40 40

19 20 42 44

b) Maybe younger people have a lower probability to make a claim on their life insurance. (Here any reasonable explanation would be acceptable.)

Chapter 6
7) Rolling a die, A. What is the probability occurring 1 point? B. What is the probability occurring more than 4 points (including 4)? C. If rolling two dies, and adding the two results together, what is the probability occurring 4 points? Solution: a) 1/6 b) 1/6+1/6+1/6=1/2 c) (1/6*1/6)+(1/6*1/6)+(1/6*1/6)=1/12

Chapter 7
8) The following statements descried the correlation, which are correct? 1 Correlation is always between -1 and +1. 2 The correlation of x with y is not the same as the correlation of y with x. 3 Correlations always have clear units. 4 Correlation measures the strength of the linear association between the two variables. 5 Correlations is not affected by changes in the center of scale of either variable. A 1, 2, 3 B 3, 4, 5 C 1, 4, 5 D 2, 3, 4 Solution: C

Chapter 9
9) Assume the probability of a student failing courses is 0.1, choosing 3 students at random. What is the probability of two of them failing the course? Solution: Let: P=0.1, n=3, x=2 f(x)=
(

= (

=3*0.01*0.9=0.027

Chapter 10

10) The border patrol on the Canadian side of the Ambassador Bridge claims that the time it spends questioning the occupants of cars that cross this border point has a normal distribution with a mean of 1.75 minutes with a standard deviation of 0.34 minutes. If this claim is true, What is the probability that the occupants of a randomly observed car will be questioned for more than 2.50 minutes? What is the probability that the occupants of a randomly observed car will be questioned for less than 2.00 minutes? Solution: P(x>2.5) = P(z>(2.5-1.75)/0.34)=P(z>2.21)=0.5-0.4864=0.0136 P(x<2) = P(z<(2-1.75)/0.34)=P(z<0.74)=0.5+0.2704=0.7704