2020 Mid Term S2
2020 Mid Term S2
MASA : 9 AM – 10:30 AM
TIME
a) Forbes magazine published data on the best small firms in 2018. These were firms which had
been publicly traded for at least a year, have a stock price of at least $5 per share, and have
reported annual revenue between $5 million and $1 billion. Table 1 shows the ages of the chief
executive officers (CEO) for the first 60 ranked firms.
Age Frequency
30 – 34 0
35 – 39 1
40 – 44 5
45 – 49 10
50 – 54 12 ans:
55 – 59 17 i. 39.1892%
60 – 64 21 ii. 0.081
65 – 69 7 iii. 56.12 years
70 – 74 1 iv. s = 7.6013 years
iii. Find the mean age of the CEO for the ranked films. (3 marks)
iv. Calculate the standard deviation for the age of the CEO. (3 marks)
b) Suppose that the four inspectors at a film factory are supposed to stamp the expiration date on
each package of film at the end of the assembly line. John, who stamps 20% of the packages,
fails to stamp the expiration date once in every 200 packages; Tom, who stamps 60% of the
packages, fails to stamp the expiration date once in every 100 packages; Jeff, who stamps 15%
of the packages, fails to stamp the expiration date once in every 90 packages; and Pat, who
stamps 5% of the packages, fails to stamp the expiration date once in every 200 packages.
i. Draw an appropriate tree diagram for the above case. (2 marks)
ii. If a customer complains that her package of film does not show the expiration date, what is
the probability that it was inspected by John? ans: 0.1124 (3 marks)
(15 marks)
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QUESTION 2
30 piston rings were measured and the finished inside diameter (in centimeters) were recorded.
Table below shows data of finished inside diameter of the 30 piston rings. Given that the finished
inside diameter of the piston rings are normally distributed.
i. Calculate the mean and standard deviation of the inside diameter of the piston rings.
(3 marks)
ii. What the probability that the mean piston ring will have inside diameters exceeding 10.00
centimeters? (3 marks)
iii. What is the probability that the mean piston ring will have an inside diameter between 9.9513
and 9.9820 centimeters? (4 marks)
iv. If specifications require that all piston rings to have mean inside diameter between 9.99 and
10.01 centimeters, what is the probability that a piston ring is expected to be scrap?
(5 marks)
(15 marks)
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QUESTION 3
An engineer of an automobile company runs a series of experiment to determine the time taken for
a vehicle with ABS to stop (when break is pushed) during heavy rain. A sample of 45 cars has been
tested and the time taken to stop the car (in seconds) are shown in the table below. Assume that the
experiments data are normally distributed.
i. What is the mean time taken for the vehicle with ABS to stop (when break is pushed) during
heavy rain? (2 marks)
ii. What is the point estimate for the average time of the vehicle with ABS to stop (when break
is pushed) during heavy rain? (1 marks)
iii. Construct a 95% confidence interval to estimate the average time of the vehicle with ABS to
stop (when break is pushed) during heavy rain. (4 marks)
iv. Suppose that another engineer claims that the average time taken for the vehicle with ABS
to stop (when break is pushed) during heavy rain will take exactly 23.4 seconds. Do an
appropriate hypothesis testing to justify his claim by using 0.05 significant level. (5 marks)
Ans:
v. Find the p-value for the test in (iv). i. mean = 24.3667 (3 marks)
ii. 24.3667
iii. (24.1097, 24.6237) (15 marks)
iv. Reject H-null. The average time taken
for the vehicle with ABS to stop is not exactly 23.4 seconds
v. p-value = 0.000001
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APPENDIX TABLE:
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NORMAL DISTRIBUTION TABLE
Areas under the standard normal curve