STAT-402 Statistics and Probability

Assignment # (1)
Q# 1. The following data show the life time in months of car battery

37 41 39 38 39 41 37 42 40 48 45 47 46 50 51

46 48 49 48 50 52 49 51 55 53 57 55 56 57 62

Display the data by using frequency distribution (considering life as a continuous variable) and stem and
leaf plot
1. Construct histogram and discuss shape of the data
2. Construct dot diagram.
3. Find median and three quartiles.
4. Construct cumulative frequency polygon and by using the graph answer the following.
a. Estimate 50% of batteries have life at most how many months
b. Estimate percentage of batteries that have life at most 54 months
c. Estimate percentage of batteries that have life at least 47 months
Q# 2. Guests staying at Marada Inn were asked to rate the quality of their accommodation as being
excellent, above average, average, below average, or poor.
The ratings provided by a sample of 20 guests are shown below.

Below Above Above Above Above Above Below Above

Average Average Average Average Average Average Average Average

Average Below Average Poor Poor Above Excellent Average

Average Average

Above Average Above Average

Average Average

1. Construct frequency distribution of the above data, also calculate percentage frequency.
2. Construct simple bar chart and pie diagram of the above data.
STAT-402 Statistics and Probability

Q# 3. Three teachers of statistics reported mean examination grades of 75, 82 and 84 for their
classes each consists of 30, 25 and 17 students respectively. Determine the mean grade for all classes.

Q# 4. If an investor buys 200 shares at a price of Rs.45/- each and 250 shares at Rs36/ each find
the mean price per share. If he sells all the shares at the mean price of Rs 42/-each share find the
amount of total profit
Q# 5. Jim’s Videotaping Service recently placed an order for VHS videotape. Jim ordered 6 cases of
High-Grade, 4 cases of Performance High-Grade, 8 cases of standard, 3 cases of High Standard, and
1 case of Low Grade. Each Case contains 24 tapes. Suppose a case of High-Grade costs $28,
Performance High-Grade costs $36, Standard costs $16, High Standard costs $18, and Low costs $16
1. What is the average cost per case to Jim?
2. What is the average cost per tape to Jim?
3. Suppose Jim will sell any tape for for $1.25. is this a good business practice for Jim?
Q# 6. If a student got 56 and 46 in two mid tests and 65 in a final test find mean marks in three tests
if importance of final test is twice than that of each mid test
Q# 7. A computer calculated a mean value of 42 from 20 observations. It was later discovered at the
time of checking that two values 45 & 38 entered instead of 35 & 58. Find the correct value of mean.
Q# 8. Find out missing values in the following table.
Classes 10-19 20-29 30-39 40-49 50-59 60-69 TOTAL

Frequency ? 55 ? 40 ? ? 250

Relative Frequency .06 ? 0.36 ? ? 0.02 1.00

Q# 9. Car rental rates per day for a sample of seven Eastern U.S. cities are as follows (The Wall
Street Journal, January 16, 2004).

City Boston Atlanta Miami New York Orlando Pittsburgh Washington, D.C.

Daily Rate $ 43 35 34 58 30 30 36
STAT-402 Statistics and Probability

1. Compute the mean, variance, and standard deviation for the car rental rates.
2. A similar sample of seven Western U.S. cities showed a sample mean car rental rate of $38 per day.
The variance and standard deviation were 12.3 and 3.5, respectively. Discuss any difference between
the car rental rates in Eastern and Western U.S. cities.
Q# 10. Public transportation and the automobile are two methods an employee can use to get to work
each day. Samples of times recorded for each method are shown. Times are in minutes.

Public Transportation: 28 29 32 37 33 25 29 32 41 34

Automobile: 29 31 33 32 34 30 31 32 35 33
a. Compute the sample mean time to get to work for each method.
b. Compute the sample standard deviation for each method.
c. On the basis of your results from parts (a) and (b), which method of transportation should be
preferred? Explain.
d. Develop a box plot for each method. Does a comparison of the box plots support your conclusion in
part (c)?
Q# 11. The National Association of Realtors reported the median home price in the United States and
the increase in median home price over a five-year period (The Wall Street Journal, January 16,
2006). Use the sample home prices shown here to answer the following questions. Data are in
thousands of dollars.
995.9 48.8 175.0 263.5 298.0 218.9 209.0

628.3 111.0 212.9 192.6 2325.0 958.0 212.5

a. What is the sample median home price?

b. In January 2001, the National Association of Realtors reported a median home price of $139,300 in
the United States. What was the percentage increase in the median home price over the five-year period?

c. What are the first quartile and the third quartile for the sample data?

d. Provide a five-number summary of the home prices.

e. Do the data contain any outliers?

f. What is the mean home price for the sample? Why does the National Association of Realtors prefer to
use the median home price in its reports?
STAT-402 Statistics and Probability

Q# 12. The following data shows the weight (in grams, rounded to the nearest gram) of 35 randomly picked
oranges from a farm.
155, 161, 164, 166, 168, 170, 172, 172, 173, 175, 177, 178, 178, 179, 181, 182, 182, 184, 186, 188, 189, 192,
195, 196, 197, 198, 203, 206, 208, 209, 210, 214, 218, 221, 243

a. Group the data in the form of a table with class intervals.

b. Draw cumulative frequency polygon and calculate the values of three quartiles.
c. Draw a histogram from the above grouped data and calculate mode of the data.
d. Suggest whether the data is positively skewed, negatively skewed, or symmetrical.
e. Construct Box and whisker plot and discuss shape of the data.

Q# 13. The high costs in the California real estate market have caused families who cannot afford to buy bigger
homes to consider backyard sheds as an alternative form of housing expansion. Many are using the backyard
structures for home offices, art studios, and hobby areas as well as for additional storage. The mean price of a
customized wooden, shingled backyard structure is $3100 (Newsweek, September 29, 2003). Assume that the
standard deviation is $1200.
a. What is the z-score for a backyard structure costing $2300?

b. What is the z-score for a backyard structure costing $4900?

c. Interpret the z-scores in parts (a) and (b). Comment on whether either should be considered an outlier.

d. The Newsweek article described a backyard shed-office combination built in Albany, California, for
$13,000. Should this structure be considered an outlier? Explain.

e. If Z-score of a backyard structure is 1.5, find the cost of backyard structure.

Q# 14. Ahmad uses motor cycle to commute daily from his home to his university. On average, the trip one
way takes 24 minutes with a standard deviation of 3.8 minutes. Whereas Aslam, living in a village, use local bus
to commute daily from his home to his university . On average, the trip one way takes 2.3 hours with a
standard deviation of 0.3 hours. On one day Ahmad takes 30 minutes and Aslam takes 2.4 hours on the way to
the university, which student takes more time than usual arrival time.
STAT-402 Statistics and Probability

Q# 15. The following data represent the daily sales in $1000 and percentage of days for corresponding sale,
find mean daily sale.
Daily sales % days
0 0.20
1 0.30
2 0.25
3 0.15
4 0.10

Q# 16. Cool Tel is a large mobile service provider. It has conducted a study on 10,000 customers about the
length of time they have to wait, at its customer care centers, before being facilitated by the Cool’s officer. The
results of the study are as follows:
Waiting Time (min) 0 1 2 3 4 5 6 7

No. of customers 380 1120 1680 1780 1960 1550 1200 330

Find mean waiting time.

Q# 17. The following data represent the measurements made by to instruments local and imported, which
equipment yield more consistent measurements.
Local 7.6 5.6 6.5 7.3 9 7.6 7.2 7.1 7.0
Imported 7.2 7.1 7.0 7.1 7.3 7.2 7.1 7.2 7.3
Q# 18. Consider the following Stem and Leaf display of marks obtain by students.

2 25462

3 365487

4 2232121

5 36587444

6 69876
Find the mean, median and mode of the data and discuss its shape.
STAT-402 Statistics and Probability

Q# 19. To compare monthly starting salaries for business school graduates by major, a sample of
recent graduates was selected. The major and the monthly starting salary were recorded for each
graduate. Following Figure shows box plots for accounting, finance, and management majors.

9000

8000

7000
Salary

6000

5000

4000

3000

Accounting Finance Management

Degree

a) Which degree has the highest average starting salary.

b) Which degree has more variation in starting salary.

c) The shape of which degree is close to symmetric.

d) The shape of which degree is extremely positively skewed.

e) Employee of which degree has least starting salary

f) Employee of which degree has highest starting salary.