INDIVIDUAL ASSIGNMENT 1

MAS202
Business Statistics
Your full name: Nguyễn Thị Bích Như
Roll Number: CS171753
Class: BA1703

SCENARIO 1: The table below contains the opinions of a sample of 200 people
broken down by gender about the latest congressional plan to eliminate
anti-trust exemptions for professional baseball.

1. Construct a table of row percentages.

2. Construct a table of column percentages.
3. Construct a table of total percentages.
4. How many percent of the 200 were females who were either neutral or against
the plan?
5. How many percent of the 200 were males who were not against the plan?
6. How many percent of the 200 were not neutral?
7. How many percent of the 200 were against the plan?

Answer:
1. Table of Row Percentages

(Unit:%)
For Neutral Against Totals
= (38/104)*100 = (54/104)*100 = (12/104)*100
Female 100
= 36.54 = 51.92 = 11.54
= (12/96)*100 = (36/96)*100 = (48/96)*100
Male 100
= 12.5 = 37.5 = 50
= (50/200)*100 = (90/200)*100 = (60/200)*100
Totals 100
= 25 = 45 =30

1
2. Table of Column Percentages:

(Unit:%)
For Neutral Against Totals
= (38/50)*100 = (54/90)*100 = (12/60)*100 = (104/200)*100
Female
= 76 = 60 = 20 = 52
= (12/50)*100 = (36/90)*100 = (48/60)*100 = (96/200)*100
Male
= 24 = 40 = 80 = 48

Totals 100 100 100 100

3. Table of Total Percentages:

(Unit:%)
For Neutral Against Totals
= (38/200)*100 = (54/200)*100 = (12/200)*100 = (104/200)*100
Female = 27 =6 = 52
= 19
= (12/200)*100 = (36/200)*100 = (48/200)*100 = (96/200)*100
Male =6 = 18 = 24 = 48
= (50/200)*100 = (90/200)*100 = (60/200)*100
Totals 100
=25 = 45 =30
4. The percentage of females who were either neutral or against the plan
Percentage = Percentage of neutral + Percentage of against
= 27.00% + 6.00%
= 33.00%
Therefore, 33.00% of the 200 people were females who were either neutral or against
the plan.

5. Percentage of Males who were not Against the Plan:

There are 24% of the 200 people were males who were not against the plan.

6. Percentage of People who were not Neutral:

The percentage of people who were not neutral can be calculated by subtracting the
percentage of neutral responses from 100%:

Percentage = 100% - Percentage of neutral

= 100% - 45.00%
= 55.00%
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 Therefore, 55.00% of the 200 people were not neutral.

7. Percentage of people who were Against the Plan:

To calculate this, we need to sum the percentages of the "against" category from both
the male and female rows:
Percentage = Percentage of against (female) + Percentage of against (male)

= 6.00% + 24.00%
= 30.00%

Therefore, 30.00% of the 200 people were against the plan.

SCENARIO 2: Given below is the stem-and-leaf display representing the amount of

detergent used in gallons (with leaves in 10ths of gallons) in a day
by 25 drive-through car wash operations in Phoenix.
9 | 147
10 | 02238
11 | 135566777
12 | 223489
13 | 02
1. Suppose that a percentage histogram for the detergent data is constructed, using "9.0
but less than 10.0 gallons" as the first class. Determine the percentage of drive-
through car wash operations that use “12.0 but less than 13.0 gallons” of detergent?
2. If a percentage histogram for the detergent data is constructed, using "9.0 but less
than 10.0 gallons" as the first class, what percentage of drive-through car wash
operations use less than 12 gallons of detergent in a day?
3. If a relative frequency or percentage distribution for the detergent data is constructed,
using "9.0 but less than 10.0 gallons" as the first class, what percentage of drive-
through car wash operations use at least 10 gallons of detergent in a day?
4. Construct a relative frequency or percentage distribution for the detergent data, using
"9.0 but less than 10.0" as the first class.
5. Construct a cumulative percentage distribution for the detergent data if the
corresponding frequency distribution uses "9.0 but less than 10.0" as the first class.
6. Construct a percentage histogram for the detergent data, using "9.0 but less than 10.0"
as the first class.
7. Construct a cumulative percentage polygon for the detergent data if the corresponding
frequency distribution uses "9.0 but less than 10.0" as the first class.
8. Construct a percentage polygon for the detergent data if the corresponding frequency

3
 distribution uses "9.0 but less than 10.0" as the first class.
Answer:
1. Percentages of drive-through car wash operations that use “12.0 but less than 13.0 gallons”
of detergent:
6
×100=24 %
25
2. Percentage of drive-through car wash operations use less than 12 gallons of detergent in a
day:
17
×100=68 %
25
3. Percentage of drive-through car wash operations use at least 10 gallons of detergent in a
day:
22
×100=88 %
25
4. Frequency table, using "9.0 but less than 10.0" as the first class:

Class Frequency Relative frequency

9.0 to < 10.0 3 0.12
10.0 to < 11.0 5 0.2
11.0 to < 12.0 9 0.36
12.0 to < 13.0 6 0.24
13.0 to < 14.0 2 0.08
Total 25 1
5. Cumulative percentage distribution:

Class Frequency Relative frequency

9.0 to < 10.0 3 12%
10.0 to < 11.0 8 32%
11.0 to < 12.0 17 68%
12.0 to < 13.0 23 92%
13.0 to < 14.0 25 100%
6. Percentage histogram:

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7. Cumulative percentage polygon:

8. Percentage polygon:

Frequency
10
9
9
8
7
6
6
5
5
4
3
3
2
2
1
5
0
9.0 to < 10.0 10.0 to < 11.0 11.0 to < 12.0 12.0 to < 13.0 13.0 to < 14.0
SCENARIO 3: The rate of return of a Fortune 500 company over the past 15 years
are: 3.17%, 4.43%, 5.93%, 5.43%, 7.29%, 8.21%, 6.23%, 5.23%,
4.34%, 6.68%, 7.14%, -5.56%, -5.23%, -5.73%, -10.34%

1. Compute the arithmetic mean rate of return per year.

2. Compute the geometric mean rate of return per year for the first four years.
3. Construct a boxplot for the rate of return. What is the shape of the
distribution for the rate of return?
Answer:
1. Arithmetic mean rate of return per year =
3.17 %+ 4.43 %+5.93 % +…+(−10.34 %)
=2.48 %
15

2. Geometric mean rate of return per year for the first 4 years
= √4 ( 1+ 3.17 % ) × ( 1+ 4.43 % ) × ( 1+5.93 % ) × ( 1+5.43 % ) -1 = 4.73%

3. Boxplot: the distribution is Left-skewed

SCENARIO 4: Two different designs on a new line of winter jackets for the coming
winter are available for your manufacturing plants. Your profit (in thousands of
dollars) will depend on the taste of the consumers when winter arrives. The
probability of the three possible different tastes of the consumers and the
corresponding profits are presented in the following table.
Probability Taste Design A Design B
0.2 more conservative 180 520
0.5 no change 230 350
0.3 more liberal 350 270
1. What is your expected profit when Design B is chosen?
2. What is the variance of your profit when Design A is chosen?
3. What is the standard deviation of your profit when Design B is chosen?
4. What is the covariance of the profits from the two different designs?
5. What is the expected profit, the total variance, and the total standard deviation
6
 if you increase the shift of your production lines and choose to produce both
designs?
Answer:

Note: Probability of taste: POT

1. Expected profit when Design B is chosen:

Expected profit = ( POT 1 × Profit from taste 1 with Design B) + ( POT 2×Profit
from taste 2 with Design B) + ( POT 3× Profit from taste 3 with Design B)

Expected profit = (0.2* 520) + (0.5 * 350) + (0.3 * 270)

Expected profit = 104+ 175 +81

Expected profit B = 360 thousand dollars

2. Variance when design A is chosen:

Variance = ( P OT 1 × (Profit ¿taste 1 with Design A−Expected profit A)2 ¿ + P OT 2 ×

( Profit ¿taste 2 with Design A−Expected profit A) + P OT 3 ×
2

2
( Profit ¿taste 3 with Design A−Expected profit A)

Expected profit A = 256 thousand dollars

Variance = (0.2 × (180-256)^2) + (0.5 × (230 - 256)^2) + (0.3× (350 - 256)^2)

=4144 thousand dollars

3. Standard deviation for profit when design B is chosen:

Variance = (POT 1 × (P rofit ¿taste 1 with Design B− Expected profit B)2 ¿+ (POT 2×
( Profit ¿taste 2 with Design B−Expected profit B) ¿ + (POT 3×
2

2
( Profit ¿taste 3 with Design B−Expected profit B) ¿

Expected profit A=360 thousand dollars

Variance = (0.2* (520 - 360)^2) + (0.5 * (350-360)^2) + (0.3* (270 - 360)^2)

=7600 thousand dollars

Standard deviation=√ 7600=¿ ¿87.18 thousand dollars

4. If we increase the shift of your production lines and choose to produce both
designs:
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 Total expected profit = E(A)+E(B) = 256 + 360 = 616 thousand dollar or $616,000

Total variance = 𝑉𝑎𝑟𝑖𝑎𝑛𝑐(𝑋) + 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒(𝑌) + 2𝐶𝑜𝑣(𝑋, 𝑌) = 4144 + 7600 +

2(−4840) = 2064 or 2064 × $1,0002 = $2,064,000,000

Total standard deviation = √2064 = 45.43 𝑡ℎ𝑜𝑢𝑠𝑎𝑛𝑑 𝑑𝑜𝑙𝑙𝑎𝑟 𝑜𝑟 $45,430

SCENARIO 5: Given below are the rating and performance scores of 15 laptop
computers.

Performance Score 115 191 153 194 236 184 184 216
Overall Rating 74 78 79 80 84 76 77 92
Performance Score 185 183 189 202 192 141 187 189
Overall Rating 83 78 77 78 78 73 77 79

1. What is the sample covariance between the performance scores and

the rating?
2. What is the sample correlation coefficient between the performance
scores and the rating?
3. How will you classify the linear relationship between the
performance scores and the rating?
Answer:

1. What is the sample covariance between the performance scores and the rating?

(115+191+153+194 +236+184+ 184+216+185+183+ 189+ 202+ 192+ 141+187+ 189)

X=
16
= 183.81
(74+ 78+79+80+84 +76+77+ 92+ 83+78+77+78+ 78+ 73+77+79)
Y =
16
= 78.94

Cov(X, Y) = [(115 – 183.81)× (74 – 78.94) + (191 – 183.81)× (78 – 78.94) +

(153 – 183.81)× (79 – 78.94) + (194 – 183.81)× (80 – 78.94) +
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 (236 – 183.81)× (84 – 78.94) + (184 – 183.81)× (76 – 78.94) +
(184 – 183.81)× (77 – 78.94) + (216 – 183.81)× ( 92 – 78.94) +
(185 – 183.81)× (83 – 78.94) + (183 – 183.81)× (78 – 78.94) +
(189 – 183.81)× (77 – 78.94) + (202 – 183.81)× (78 – 78.94) +
(192 – 183.81)× (78 – 78.94) + (141 – 183.81)× (73 – 78.94) +
(187 – 183.81)× (77 – 78.94) + (189 – 183.81)× (79 – 78.94)] / (16 – 1)
= 82.99

2. What is the sample correlation coefficient between the performance scores and
the rating?

SX2 =[(115 – 183.81)2 + (191 – 183.81)2 + (153 – 183.81)2 + (194 – 183.81)2 + (236 –
183.81)2 + (184 – 183.81)2 + (184 – 183.81)2 + (216 – 183.81)2 + (185 – 183.81)2 +
(183 – 183.81)2 + (189 – 183.81)2 + (202 – 183.81)2 + (192 – 183.81)2 + (141 –
183.81)2 + (187 – 183.81)2 + (189 – 183.81)2] / (16 – 1) = 793.10

=>SX = √793.10 = 28.16

SY2 = [(74 – 78.94)2 + (78 – 78.94)2 + (79 – 78.94)2 + (80 – 78.94)2 + (84 – 78.94)2 +
(76 – 78.94)2 + (77 – 78.94)2 + (92 – 78.94)2 + (83 – 78.94)2 + (78 – 78.94)2 + (77 –
78.94)2 + (78 – 78.94)2 + (78 – 78.94)2 + (73 – 78.94)2 + (77 – 78.94)2 + (79 –
78.94)2] / (16 – 1) = 19.80

=>SY = √19.80 = 4.45

82.99
r = 28.16 x 4.45 = 0.66

3. How will you classify the linear relationship between the performance scores and
the rating?
Because r is approaching one, the linear relationship between the performance scores
and the rating can be categorized as relatively strong and positive. This means that as
the laptops' performance scores improve, so do their total ratings.

SCENARIO 6: Mothers Against Drunk Driving is a very visible group whose focus
is to educate the public about the harm caused by drunk drivers. A
study was recently done that emphasized the problem we all face with
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 drinking and driving. Four hundred accidents that occurred on a
Saturday night were analyzed. Two items noted were the number of
vehicles involved and whether alcohol played a role in the accident.
The numbers are shown below:

Number of Vehicles Involved Totals

Did alcohol play a role? 1 2 3
Yes 50 100 40 190
No 25 175 60 260
Total 75 275 100 450
1. What proportion of accidents involved more than one vehicle?
2. What proportion of accidents involved alcohol and a single vehicle?
3. What proportion of accidents involved alcohol or a single vehicle?
4. Given alcohol was involved, what proportion of accidents involved a
single vehicle?
5. Given that multiple vehicles were involved, what proportion of
accidents involved alcohol?

Answer:

1. Total accidents involving more than one vehicle = 275 + 100 = 375
Proportion of accidents involved more than one vehicle
= Total accidents involving more than one vehicle / Total accidents
= 375 / 450
= 0.833
= 83.33%
2. Number of accidents involving alcohol and a single vehicle = 50
Proportion of accidents involving alcohol and a single vehicle
Number of accidents involving alcohol∧a single vehicle
= Total accidents
50
= 450

= 0.1111
= 11.11%
3. Total accidents involving alcohol or a single vehicle = 190 + 25 = 215
Proportion of accidents involving alcohol or a single vehicle
10
 Total accidents involving alcohol∧a single vehicle
= Total accidents
215
= 450

= 0.4778
= 47.78%
4. Number of accidents involving alcohol and a single vehicle = 50
Total accidents involving alcohol = 190
Proportion accidents given alcohol involved a single vehicle
Number of accidents involving alcohol∧a single vehicle
= Total accident involving alcohol
50
= 190

= 0.2632
= 26.32%
5. Number of accidents involving alcohol and multiple vehicles = 100 + 40 = 140
Total accidents involving multiple vehicles = 275 + 100 = 375
Proportion of accidents involving alcohol given multiple vehicles were involved:
Number of accidents involving alcohol∧multiple vehicles
¿
Total accidents involving multiple vehicles
140
= 375

= 0.3733
= 37.33%

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SCENARIO 7

Are whites more likely to claim bias? It was found that 60% of the workers were
white, 30% were black and 10% are other races. Given that a worker was white, the
probability that the worker had claimed bias was 30%. Given that a worker was
black, the probability that the worker had claimed bias was 40%. Given that a worker
was other race, the probability that the worker had claimed bias was 0%.

1. What is the probability that a randomly selected worker had not claimed bias?
2. If a randomly selected worker had claimed bias, what is the probability that
the worker is white?
3. If a randomly selected worker had not claimed bias, what is the probability
that the worker is white?
4. What is the probability that a randomly selected worker is white and
had claimed bias?
5. When a randomly selected worker was not white, what is the probability
that the worker had not claimed bias?
Answer:
Notes:
W = worker is white C = worker claimed bias
B = worker is black NC = worker did not claim
bias
O = worker is of another race
Summary of the topic:
P(W) = 0.60 (probability that a worker is white)
P(B) = 0.30 (probability that a worker is black)
P(O) = 0.10 (probability that a worker is of another race)
P(C|W) = 0.30 (probability that a white worker claimed bias)
P(C|B) = 0.40 (probability that a black worker claimed bias)
P(C|O) = 0.00 (probability that a worker of another race claimed bias)

1. The probability that a randomly selected worker had not claimed bias:
P(NC) = P(NC|W) × P(W) + P(NC|B) × P(B) + P(NC|O) ×P(O)

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 = (1 - P(C|W)) ×P(W) + (1 - P(C|B)) × P(B) + (1 - P(C|O)) × P(O)
= (1 - 0.30) × 0.60 + (1 - 0.40) ×0.30 + (1 - 0.00) × 0.10
= 0.70 × 0.60 + 0.60 ×0.30 + 1 ×0.10
= 0.42 + 0.18 + 0.10
= 0.70
= 70%
2. If a randomly selected worker had claimed bias, the probability that the
worker is white:
P(C∨W )× P (W )
P(W|C) = P (C∨W )× P (W )+ P (C∨B) × P(B)+ P (C∨O) × P(O)

0.30 × 0.60
= 0.30 ×0.60+0.40 × 0.30+0.00 ×0.10

= 0.60
= 60%

3. If a randomly selected worker had not claimed bias, the probability that
the worker is white:
P(N C∨W )× P(W )
P(W|NC) =
P (N C∨W ) × P(W )+ P(N C∨B) × P(B)+ P(N C∨O)× P(O)
[1−P(C∨W )]× P(W )
=
1−P(C)
(1−0.30) ×0.60
=
1−0.30
= 0.60
4. The probability that a randomly selected worker is white and had claimed
bias:
P(W ∩ C) = P(C|W) × P(W)
= 0.30 × 0.60
= 0.18
5. When a randomly selected worker was not white, the probability that the worker
had not claimed bias:

13
 P ( NC∨B)× P (B)+ P(NC ∨O) × P(O)
P(NC|B ∪ O) = P( B)+ P(O)

¿
=1−P(C∨B) ¿× P(B)+(1−P(C∨O))× P(O) P(B)+ P(O)

0.60 ×0.30+1 ×0.10

= 0.30+0.10

= 0.70

SCENARIO 8: A certain type of new business succeeds 60% of the time. Suppose
that 3 such businesses open (where they do not compete, so it is reasonable to believe
that their relative successes would be independent).

1. Determine the probability that all 3 businesses succeed.

2. Determine the probability that all 3 businesses fail.
3. Determine the probability that at least 1 business succeeds.
4. Determine the probability that exactly 1 business succeeds.

Answer:
1. To determine the probability that all 3 businesses succeed:
P (all businesses succeed) = P(success)× P(success) × P(success)
= 0.6×0.6×0.6
= 0.216
= 21.6%
2. Percentage of businesses fail= 100% - 60%= 40%
To determine the probability that all 3 businesses fail:
P (all 3 businesses fail) = P(failure) × P(failure) × P(failure)
= 0.4 × 0.4 × 0.4
= 0.064
= 6.4%
3. To determine the probability that at least 1 business succeeds:
P (at least 1 business succeeds) = 1 – P (all 3 businesses fail)
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 = 1 - 0.064
= 0.936
= 93.6%
4. To determine the probability that exactly 1 business succeeds:

- Case 1: P (the first company succeeds, the second and third companies fail)
= P(success) × P(failure) × P(failure)
= 0.6×0.4×0.4
= 0.096
= 9.6%
- Case 2: P (the second company succeeds, the first and third companies fail)
= P(failure) × P(success) × P(failure)
= 0.4×0.6×0.4
= 0.096
= 9.6%
- Case 3: P (the third company succeeds, the first and second companies fail)
=P(failure) × P(failure) × P(success)
= 0.4×0.4×0.6
= 0.096
= 9.6%
The probability that exactly 1 business succeeds= 9.6% + 9.6% + 9.6% = 28.8%

SCENARIO 9:From an inventory of 48 new cars being shipped to local dealerships,

corporate reports indicate that 12 have defective radios installed.

1. What is the probability out of the 8 new cars it just received that,
when each is tested, no more than 2 of the cars have defective
radios?
2. What is the probability out of the 8 new cars it just received that,
when each is tested, exactly half of the cars have defective radios?
3. What is the probability out of the 8 new cars it just received that,
when each is tested, none of the cars have defective radios?
4. What is the probability out of the 8 new cars it just received that,
when each is tested, no more than 2 of the cars have defective
radios?
5. What is the probability out of the 8 new cars it just received that,
when each is tested, no more than half of the cars have non-defective
radios?

Given that 𝜋 = 12 48 =0.25, n = 8

15
 Using binominal distribution: P( X = x) = C nx π x (1−π )n−x
8 2 8−2
 P( X = 2) = C 2 × 0.25 ×(1−0.25) = 0.3115
8 4 8 −4
 P( X = 4) = C 4 ×0.25 ×(1−0.25) = 0.8652
8 0 8−0
 P( X = 0) = C 0 × 0.25 ×(1−0.25) = 0.1001
8 1 8 −1
 P( X = 1) = C 1 × 0.25 ×(1−0.25) = 0.2670

 P( X ≤ 2) = P( X = 0) + P( X = 1) + P( X = 2)

= 0.1001 + 0.2670 + 0.3115

= 06787
36
 𝜋 of car have non-defective radios = 48 = 0.75, n=8

P( X = 0) = C 80 × 0.750 ×(1−0.25)8−0 = 1.5258×10−5

P( X = 1) = C 81 × 0.751 ×(1−0.25)8 −1 = 3.6621×10−4

P( X = 2) = C 82 × 0.752 ×(1−0.25) 8−2 = 3.8452×10−3

P( X = 3) = C 83 × 0.753 ×(1−0.25)8−3 = 0.0230

P( X =4) = C 84 ×0.75 4 ×(1−0.25)8 −4 = 0.0865

 𝑃(𝑋 ≤ 4) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) + 𝑃(𝑋 = 3) + 𝑃(𝑋 = 4)

= 0.1137

SCENARIO 10:

A major hotel chain keeps a record of the number of mishandled bags per 1,000
customers. In a recent year, the hotel chain had 5.6 mishandled bags per 1,000
customers. Assume that the number of mishandled bags has a Poisson distribution.

1. What is the probability that in the next 1,000 customers, the

16
 hotel chain will have no mishandled bags?
2. What is the probability that in the next 1,000 customers, the
hotel chain will have at least two mishandled bags?
3. What is the probability that in the next 1,000 customers, the hotel
chain will have between two and four inclusive mishandled bags?
4. What is the probability that in the next 1,000 customers, the hotel
chain will have less than two or more than eight mishandled
bags?
5. What is the probability that in the next 1,000 customers, the hotel
chain will have less than two and more than eight mishandled
bags?

Given that 𝜆 = 5.06

−λ x
e λ
Using binominal distribution (𝑋 = 𝑥) =
x!

1. The probability that in the next 1,000 customers, the hotel

chain will have no mishandled bags:
e−5.06 5.06 0
(𝑋 = 0) = = 0.0063
0!
2. The probability that in the next 1,000 customers, the hotel
chain will have at least two mishandled bags:
(𝑋 ≥ 2) = 1 − 𝑃(𝑋 < 2)
= 1 − [(𝑋 = 0) + 𝑃(𝑋 = 1)] 𝑃(𝑋 ≥ 2)
e−5.06 5.06 0 e−5.06 5.06 1
=1−( + )
0! 1!
= 0.9615
3. The probability that in the next 1,000 customers, the hotel
chain will have between two and four inclusive mishandled
bags:
(2 ≤ 𝑋 ≤ 4) = 𝑃(𝑋 ≤ 4) − 𝑃(𝑋 ≤ 2)
(2 ≤ 𝑋 ≤ 4) = 𝑃(𝑋 = 2) + 𝑃(𝑋 = 3) + 𝑃(𝑋 = 4) 𝑃(2 ≤ 𝑋 ≤ 4)
e−5.06 5.06 2 e−5.06 5.063 e−5.06 5.06 4
= + +
2! 3! 4!
= 0.3916
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 4. The probability that in the next 1,000 customers, the hotel
chain will have less than two or more than eight mishandled
bags:
(𝑋 < 2 𝑜𝑟 𝑋 > 8) = 𝑃(𝑋 < 2) + 1 − 𝑃(𝑋 ≤ 8)
(𝑋 < 2 𝑜𝑟 𝑋 ≥ 8) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 1 − 𝑃(𝑋 = 0) + ⋯ + 𝑃(𝑋 = 8)
(𝑋 < 2 𝑜𝑟 𝑋 ≥ 8) = 0.1105
5. The probability of less than two and more than eight bags being
handled improperly among the next 1,000 consumers is actually
zero. Since there cannot be both fewer than two and more than
eight mishandled bags at once, these two occurrences are mutually
exclusive. As a result, there is no chance that they will intersect.
(𝑋 < 2 𝑎𝑛𝑑 𝑋 > 8) = 0

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