1. Shapiro, Director of Human Resources, is exploring employee absenteeism at Plain Power Plant.

An analysis of personnel records indicated that 20% of all plant employees are absent excessively. This is an example of assigning probabilities by the ________________ method. 2. A die and a coin are tossed at the same time. Answer the following questions: a. Are these two experiments independent? Why?

b. What is the sample space for the each experiment? What is the combined sample space?

c. What is the probability that the die will show an odd number and the coin will land on head? d. What is the probability that the die will not show number 4? 3. For each question below, determine True or False: a. If a simple random sample is chosen with replacement, each individual has the same chance of selection on every draw. b. A sample is always a good representation of the target population. c. Items or individuals in a judgement sample are chosen with regard to their probability of occurrence. d. The lecturer of a business statistics class wanted to find out the average amount of time per week her students spent studying for the class. Among the 50 students in her class, 20% were first-year students, 50% were second-year students and 30% were third-year students. She decided to draw 2 students randomly from the first-year students, 5 randomly from the second-year students and 3 randomly from the third-year students. This is an example of a systematic sample. e. The lecturer of a business statistics class wanted to find out the average amount of time per week her students spent studying for the class. She divided the fifty students on her class list into ten groups starting from the first student on the roster. The first student was randomly selected from the first group. Then every tenth student was selected from the remaining students. This is an example of a cluster sample. 4. The height of an adult male is known to be normally distributed with a mean of 69 inches and a standard deviation of 2.5 inches. a. What is the probability that a randomly selected adult male has a height between 65 inches and 73 inches? b. What is the probability that a randomly selected adult male is either shorter than 64 inches or taller than 74 inches? c. What is the probability that a randomly selected adult male has a height between 70 inches and 72 inches? d. What is the height of the doorway such that 96 percent of the adult males can pass through it without having to duck their head?

5. Calculate Laspeyres Price Indexes for 2000-2002 from the following data. Use 1995 as the base year. Price

Item 1 2 3 4

Quantity (1995) 21 6 17 43

1995 0.5 1.23 0.84 0.15

2000 0.67 1.85 0.75 0.21

2001 0.68 1.9 0.75 0.25

2002 0.71 1.91 0.8 0.25

Calculate the Paasche Price Indexes for 2001 and 2002 using the following data and 1997 as the base year 2001 Item 1 2 3 Price(1997) 22.5 10.9 1.85 Price 27.8 13.1 2.25 Quantity 13 5 41 Price 28.11 13.25 2.35 2002 Quantity 12 8 44

6.Calculate the following probabilities for the mean is 17 and standard deviation is 2

P( X 17) P( X 18) P( X 15) P(15.5 X 19) P(15 X 16) P( X 14 or X 20) P( X 18)

7.A die is tossed and five events are defined as follows: Event A: The number on the top is even. Event B: The number on the top is odd. Event C: The number on the top is greater than 4. Event D: The number on the top is less than 4. Event E: The number on the top is more than 2 Determine whether the following statements are true: a. Event A and Event B are mutually exclusive. b. Event C and Event D are collectively exhaustive. c. Event C and Event D are mutually exclusive. d. Event A and Event B are collectively exhaustive. e. Event E and Event D are collectively exhaustive. T / T / T / T / T / F F F F F

f. Event E and Event D are mutually exclusive.

T /

8.Belinda Boyd is reviewing a newly proposed advertising campaign. Based on her 15 years experience, she believes the campaign has a 75% chance of significantly increasing brand name recognition of the product. This is an example of assigning probabilities by the ________________ method. 9.A public heath researcher examines the medical records of a group of 937 men who died in 1999 and discovers that 210 of these men died from causes related to health disease. Moreover, 312 of the 937 men had at least one parent who suffered from heart disease, and, of these 312 men, 102 died from causes related to heart disease. Determine the probability that a man randomly sepected from this group died of causes related to heart disease, given that neither of his parents suffered from heart disease. 10.You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. x $1000 $0 +$1000 +$2000 +$4000 Totals: P(x) 0.20 0.30 0.20 0.20 0.10

The mean and standard deviation of this distribution are ___________and ___________. 11.The quality management officer of a financial services firm is concerned with the number of customers who are complaining about the service charges they are paying when they take out a loan. Surveys of bank customers have found that the probability a customer is unhappy about the charges is p = 0.1. A sample of n = 20 people are interviewed and asked whether they are unhappy about these charges. As these people have been interviewed independently of each other we can assume that the number who complain has a Binomial distribution. a. What is the average number of customers who are unhappy about the changes? b. What is the standard deviation? c. What is the probability that number of complaining customers will be less than the average? d. If we draw the probability graph of this 20 trials, it will look skewed because .. 12.For a medical study, a researcher wishes to select people in the middle 60% of the population based on blood pressure. If the mean systolic blood pressure is 120 and standard deviation 8, find the upper and lower readings that would qualify people to participate in the study. Assume that blood pressure readings are normally distributed.

12.Meagan Davies manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by industry sector and investment objective. Investment Objective Growth Income Total Electronics 100 20 120 Industry Sector Airlines 10 20 30 Healthcare 40 10 50 Total 150 50 200

a. If a stock is selected randomly from Meagans portfolio, P(Growth) = _______. b. If a stock is selected randomly from Meagans portfolio, P(Healthcare) = _______. c. If a stock is selected randomly from Meagans portfolio, P(Healthcare Electronics) = ______. d. If a stock is selected randomly from Meagans portfolio, P(Growth Income) = _______. e. If a stock is selected randomly from Meagans portfolio, P(Airlines | Income) = _______. f. If a stock is selected randomly from Meagans portfolio, P(Growth | Healthcare) = _____. 13.Let A be the event that a student is enrolled in an accounting course, and let S be the event that a student is enrolled in a statistics course. It is known that 30% of all students are enrolled in an accounting course and 40% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and accounting. A student is randomly selected, what is the probability that this student is enrolled neither in Statistics nor in Accounting? 14.A used-car dealer wishes to investigate the relation between the gender of the buyer and type of vehicle purchased. The following joint probability table was developed from the dealers records for the previous year. Type of Vehicle 4WD Not 4WD Total .32 .40 .48 1.00 Buyer Female Gender Male Total

Are Female and 4WD independent, why or why not?

15.A dairy farmer estimates for the next year the farms cows will produce about 25,000 gallons of milk. Because of variation in the market price of milk and cost of feeding the cows, the profit per gallon may vary with the probabilities given in the table below. Estimate the profit on the 25,000 gallons.
Gain per gallon Probability $1.10 0.30 $0.90 0.38 $0.70 0.20 $0.40 0.06 $0.00 0.04 -$0.10 0.02

16.Suppose the warranty period on your familys new television is about to expire and you are debating about whether to buy a one-year maintenance contract for $35. If you buy the contract, all repairs for one year are free. Consumer information shows that 12% of the televisions like yours require an annual repair that costs $140 on the average. What is your expected gain if you buy the contract? 17.Lucy Liu purchased a mailing list of 2000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list. She randomly selects five names from the list for validation. If 40% of the names on the list are not authentic, and x is the number of non-authentic names in her sample, P(x<2) is ______________. 18.Adam Shapiro, Director of Human Resources, is exploring employee absenteeism at Plain Power Plant. Ten per cent of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; and 7% of all plant employees work in the finishing department and are absent excessively. A plant employee is selected randomly; F is the event works in the finishing department; and A is the event is absent excessively. P(A F) =. 19.A set of final examination grades in an introductory statistics course was found to be normally distributed with a mean of 73 and a standard deviation of 10. a. What is the probability that a randomly selected student got a grade higher than 85? b. What is the probability that mean of randomly selected 9 students grades is higher than 85? c. Are the answers from a and b different? Why so? Explain in your own words d. Find the first and third quartiles for the population e. Find the interval of middle 90% for the mean of randomly selected sample of 16 students. f. If the teacher decides only the lowest 15% of the students will fail, what is the grade whose below fails? 20.Suppose home insurance costs in Vietnam are uniformly distributed with the range of from $100 to $900. a. Draw the graph of the distribution and plot the values on it. b. What is the probability density function (pdf) for the distribution? c. Calculate the probability that insurance cost of a randomly selected home is less than $300? d. Calculate the probability that insurance cost of a randomly selected home is between $450 and $680? e. What is the mean cost of home insurance in Vietnam? f. What is the standard deviation of home insurance costs in Vietnam? 21.The quality control manager at a light bulb factory needs to estimate the proportion of defective light bulbs in a shipment of 1,000 bulbs. It is known that 5% of light bulbs manufactured by the factory is defective. a. Is the population size large enough in relation to the sample size that we can ignore the finite population correction factor in our calculation of the Standard Error of the sample proportion of defective bulbs? b. Calculate the expected value and the Standard Error of the sample proportion of defective bulbs. c. Verify that the sample size is large enough to justify applying the Central Limit Theorem. d. Create an interval such that 95% of all possible sample proportions of defective

bulbs will be within e. What is the probability that the number of defective bulbs in the sample is between 45 and 55? f. Suppose that the customer decides to return the entire shipment if the defective bulb rate exceeds 7%. What is the probability that the shipment will not return?