Page -21 (5)

The following table contains data on the 10 biggest Nasdaq losers of October 2008.
The first column in the table contains the names of the companies and their
NASDAQ symbols, and the second column gives the returns for the stocks of these
companies for the month of October 2008.

Company (NASDAQ Symbol) October 2008 Return

Smurfit-Stone Container (SSCC) 71.3%

Bruker Corporation (BRKR) 69.3%

Savient Pharmaceuticals (SVNT) 68.1%

Parexel International Corp (PRXL) 63.7%

Global Industries (GLBL) 63.3%

Rigel Pharmaceuticals (RIGL) 62.7%

Liberty Media Interactive (LINTA) 62.2%

YRC Worldwide (YRCW) 61.7%

Grupo Financiero Galicia S.A. (GGAL) 61.7%

Bare Escentuals (BARE) 61.5%

Explain the meaning of a member, a variable, a measurement, and a data set with
reference to this table.
 Solve:
A member: Objects about which information is collected in this
table Company (NASADQ Symbol) collected information is a
Member.

A variable: Characteristics under study that assumes different

values for different elements. This table (October 2008 Return)
collected information is a variable.

A measurement: Value of a variable in October 2008 returns

every specific value is a measurement. As Smurfit-stone
Container (SSCC) value (-71.3%) is a measurement.

A data set: A data set is a collection of observation on one or

more variable. The information given in October 2008 returns of
Companies is called the data or a data set.
 Page-73 (5)
A large Midwestern city has been chronically plagued by false fire alarms. The
following data set gives the number of false alarms set off each week for a 24-week
period in this city.

10 4 8 7 3 7 10 2 6 12 11 8
1 6 5 13 9 7 5 1 14 5 15 3

a. Construct a frequency distribution table. Take 1 as the lower limit of the first class
and 3 as the width of each class.

b. Calculate the relative frequencies and percentages for all classes.

c. What percentage of these weeks had 9 or fewer false alarms?

d. Draw the frequency histogram and polygon.

Solve:
(A & B)
Small value - 1
Largest value-15
largest valuesmallest value
Class width= Number of classes

151
= 3

=4.67 =5
Alarm Tally Frequency Relative Percentage
Frequency
1 to 3 |||| 4 0.17 17
4 to 6 |||| || 7 0.29 29
7 to 9 |||| | 6 0.25 25
10 to 12 |||| 4 0.17 17
13 to 15 ||| 3 0.12 12
Total 24 1 100
 (C)

(D)
The frequency of Histogram draw :

Histogram
8

0
-3 1 to 3 4 to 6 7 to 9 10 to 12 13 to 15 16 to 18
The frequency of Polygon :

Polygon
8

0
-3 1 to 3 4 to 6 7 to 9 10 to 12 13 to 15 16 to 18

3.18
The following table gives the number of major penalties for each of the 15 teams in
the Eastern Conference of the National Hockey League during the 200809 season
(NHL, 2009). A major penalty is subject to 5 minutes in the penalty box for a player.

Team Number o f Team Number o f

Major Major
Penalties Penalties

Philadelphia 65 Florida 38
Columbus 59 Ottawa 35
Boston 53 Washington 35
Pittsburgh 51 Montreal 34
New York Rangers 50 Atlanta 31
Tampa Bay 40 New York Islanders 29
Nashville 39 Buffalo 26
Toronto 25

Compute the mean and median for the data on major penalties. Do these data have
a mode? Why or why not?

Solve:
Mean: We know that,
x
Mean for sample data: xx = n

252629313435353839405051535965
= 15

615
= 15

=40.666 =40.67

25 26 2931 34 35 35 38 39 40 5051 53 5965

Median:

38 is the median.

Mode: In this data set we can that 35 occurs twice & each of the
remaining value occurs only once. So 38 is mode.
 3.49
Attacks by stinging insects, such as bees or wasps, may become medical
emergencies if either the victim is allergic to venom or multiple stings are involved.
The following data give the number of patients treated each week for such stings in
a large regional hospital during 13 weeks last summer.

1 5 2 3 0 4 1 7 0 1 2 0 1

Compute the range, variance, and standard deviation for these data.

Solve:
x x2

1 1
5 25
2 4
3 9
0 0
4 16
1 1
7 49
0 0
1 1
2 4
0 0
1 1
x=27 x2=111
x = 27, x2 = 111, and n = 13
We know that,
Range = Largest value Smallest value
=70
= 7 patients
x2
2
x
Sample Standard Variance (s2) = n
n1

272
111
= 13
131

=4.5769
2
Sample Standard deviation (s) = s

4.5769
=

= 2.14 patients
 3.66
The following table gives the grouped data on the weights of all 100 babies born at
a hospital in 2009.

Weight (pounds) Number of Babies

3 to less than 5 5
5 to less than 7 30
7 to less than 9 40
9 to less than 11 20
11 to less than 13 5
Find the mean, variance, and standard deviation.

Solve:
Weight Number of m mf m2f
(pounds) Babies
3 to less than 5 5 4 20 80
5 to less than 7 30 6 280 1080
7 to less than 9 40 8 320 2560
9 to less than 11 20 10 200 2000
11 to less than 13 5 12 60 720
N= f=100 mf=7 m2f=6
m=40 80 440

Mean () = (mf)/N
= 780/100 = 7.80 pounds

mf
2
Sample Standard Variance ( ) = 2
m2 f

7802
6440
= 100
100
 =3.5600

Sample Standard deviation () = 2

3.5600
=

= 1.89 pounds

3.92
The following data give the numbers of computer keyboards assembled at the
Twentieth Century Electronics Company for a sample of 25 days.

45 52 48 41 56 46 44 42 48 53
51 53 51 48 46 43 52 50 54 47
44 47 50 49 52

a. Calculate the values of the three quartiles and the interquartile range.

b. Determine the (approximate) value of the 53rd percentile.

c. Find the percentile rank of 50.

Solve:
The ranked data are:
41 42 43 44 44 45 46 46 47 47 48 48 48
49 50 50 51 51 52 52 52 53 53 54 56
The three quartiles are-
Q1 = (45 + 46)/2 = 45.5,
Q2 = 48,
Q3 = (52 + 52)/2 = 52
a. IQR = Q3 Q1 = 52 45.5 = 6.5
b. Pk=kn/100 th term
= 53(25)/100
= 13.25 13
Thus, the 53rd percentile can be approximated by the
value of the thirteenth term in the ranked data, which
is 48.
Therefore, P53 = 48.
number of valuesless than xi
c. Percentile rank of xi= total number of valuesthe data set *100

Fourteen values in the given data are less than 50.

Therefore, the percentile rank of 50 = (14/25) 100 =
56%.
 3.111
The following table gives the total points scored by each of the top 10 scorers
during the 200708 regular season of National Basketball Association (Source:
www.NBA.com.)

Player Points
Scored (x)
Kobe Bryant 2323
LeBron James 2250
Allen Iverson 2164
Amare 1989
Stoudemire
Carmelo 1978
Anthony
Richard 1857
Jefferson
Dirk Nowitski 1817
Baron Davis 1791 X2
Jason 1788 5396329
Richardson 5062500
Joe Johnson 1779 4682896
total x=19,73 3956121
3912484
6 3448449
3301489
3207681
3196944
a. Calculate the mean and median. Do these
3164841
data have a mode? Why or why not?
X 2
=39329734
b. Compute the variance, standard
deviation, and range for these data.

Solve:
a. Mean (xx )= (x)/n
= 19,736/10 = 1973.6 points
Median:(value of the 5.5th term in ranked data)
 = (1857 + 1978)/2 =
1917.5 points
Mode: This data set has no mode as no value
occurs more than
once.
b. Range = Largest value Smallest value
= 2323 1779 = 544 points
x2
x2
Sample Standard Variance (s2) = n
n1

3932973419,736210
= 101

=42,084.9333

Sample Standard deviation (s) = s2

42,084.9333
=

=205.15 points
 4.14
Refer to Exercise 4.8. List all the outcomes included in each of the following events
and mention which are simple and which are compound events.

a. At most one person is against a tax increase on rich people.

b. Exactly two persons are in favor of a tax increase on rich people.

c. At least one person is against a tax increase on rich people.

d. More than one person is against a tax increase on rich people.

Solve:
The experiment of selecting three persons has eight outcomes:

FFF, FFA, FAF, FAA, AFF, AFA, AAF, and AAA.

The sample space is written as S = {FFF, FFA, FAF, FAA, AFF, AFA,
AAF, AAA}.

a. {FFF, FFA, FAF, AFF }; a compound event

b. {FFA, FAF, AFF }; a compound event

c. {FFA, FAF, FAA, AFF, AFA, AAF, AAA}; a compound event

d. {FAA, AFA, AAF, AAA}; a compound event

 4.55
Two thousand randomly selected adults were asked if they are in favor of or against
cloning. The following table gives the responses.

In Favor Against No Opinion

Male 395 405 100
Female 300 680 120

a. If one person is selected at random from these 2000 adults, find the probability
that this person is

i. in favor of cloning

ii. against cloning

iii. in favor of cloning given the person is a female

iv. a male given the person has no opinion

b. Are the events male and in favor mutually exclusive? What about the events
in favor and against? Why or why not?

c. Are the events female and no opinion independent? Why or why not?

Solve:
a. i. P(in favor) = 695/2000 = .3475
ii. P(against) = 1085/2000 = .5425
 iii. P(in favor | female) = 300/1100 = .2727
iv. P(male | no opinion) = 100/220 = .4545
b. The events male and in favor are not mutually
exclusive because they can occur together. The
events in favor and against are mutually
exclusive because they cannot occur together.
c. P(female) = 1100/2000 = .5500 and
P(female | no opinion) = 120/220 = .5455.
Since these two probabilities are not equal, the
events female and no opinion are dependent.

4.82
Five hundred employees were selected from a citys large private companies and
asked whether or not they have any retirement benefits provided by their
companies. Based on this information, the following two-way classification table was
prepared.

Have Retirement Benefits

Yes no
Men 225 75
women 150 50

a. Suppose one employee is selected at random from these 500 employees. Find the
following probabilities.

i. Probability of the intersection of events woman and yes

ii. Probability of the intersection of events no and man

b. Mention what other joint probabilities you can calculate for this table and then
find them. You may draw a tree diagram to find these probabilities.

Solve:
Let M = man, W = woman, R = has retirement benefits, and N =
does not have retirement benefits.
200 150
a. i. P(W and R) = P(W)P(R|W) = ( 500 )( 200 )=.300
 125 75
ii. P(N and M) = P(N)P(M|N) =( 500 )( 125 )=.150

b.

4.110
Five hundred employees were selected from a citys large private companies, and
they were asked whether or not they have any retirement benefits provided by their
companies. Based on this information, the following two-way classification table was
prepared.

Have Retirement Benefits

Yes No
Men 225 75
Women 150 50

Suppose one employee is selected at random from these 500 employees. Find the
following probabilities.

a. The probability of the union of events woman and yes

b. The probability of the union of events no and man

Solve:
Let M = man, W = women, Y = has retirement benefits,
and N = does not have retirement benefits.
200 375 150
a. P (W or Y)=P(W)+P(Y)-P(W and Y)= 500 + 500 - 500

=.850
 125 300 75
b. P (N or M)=P(N)+P(M)-P(N and M)= 500 + 500 - 500

=.700