FACULTY OF BUSINESS AND MANAGEMENT

UNIVERSITI TEKNOLOGI MARA (UiTM)

STATISTICAL METHOD
ECO 541
GROUP: BA 290 2E

TITLE: INDIVIDUAL ASSIGNMENT 1

PREPARED FOR: DR. CHUAH SOO CHENG

PREPARED BY: NUR NADIAH BINTI SAHIBUL FATHILAH

MATRICS ID: 2023437966

DATE OF SUBMISSION: 20TH NOVEMBER 2023

QUESTION 1
ECO 541 STATISTICAL METHOD INDIVIDUAL ASSIGNMENT 1

As with any business, the length of time customers takes to pay their invoices is
important. Listed below, arranged from smallest to largest, is the time, in days, for a
sample of a distributor of gas-powered generators company.

1 1 1 2 2 2 3 3 3 3 3 3 3 3 3
3 3 3 0 6 7 1 4 4 4 5 5 6 7 8
4 4 4 4 4 4 4 5 5 5 5 5 6 6 8
1 1 1 5 7 7 7 0 1 3 4 6 2 7 2
A) Compute the mean,
median and standard deviation.
Σx
a) Mean,
n

13+13+13+20+26+27+31+34+34+34+35+35+36+37+38+41+41+41+45+47+47+
47+50+51+53+54+56+62+67+82
30
= 40.3333

b) Median,

38 + 41
2
=39.5

c) Standard deviation,

√
( ∑ x )2
2
σ= Σx − n
n−1

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
∑ x =13 +13 +13 +20 +26 +27 +31 +34 +34 +34 +35 +35 +36 +37 +38 +41 +41
+412+452+472+472+472+502+512+532+542+562+622+672+822
= 56014

√
( 1210 )2
σ = 56014− 30
30−1

σ=
√ 56014−48803.3333
29

σ = √ 248.6437

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ECO 541 STATISTICAL METHOD INDIVIDUAL ASSIGNMENT 1

B) Develop a box plot for the length of payment time and comment on the
distribution

Min =13

Q1 =34

Q2 (median) 38+41
¿
2
=39.5

Q3 =50

Max =82

Lower inner fence =34 – (1.5 x IQR)

=34 – (1.5 x (50 – 34)
=34 – (1.5 x 16)
=34 – 24
=10

Upper inner fence =50 – (1.5 x IQR)

=50 – (1.5 x (50 – 34)
=50 – (1.5 x 16)
=50 – 24
=74

Q1

max outlier
min

Q2 Q3

0 10 20 30 40 50 60 70 80 90

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ECO 541 STATISTICAL METHOD INDIVIDUAL ASSIGNMENT 1

QUESTION 2
The following chart depicts the average amounts spent by consumers on holiday gifts.

Family $451.34
Friends $85.60
Co-workers $22.40
Others $44.52

Write a brief report summarizing the amount spent during the holidays. Be sure to
include the total amount spent, and the percent spent by each group.
451.34
I. Family = x 100%
451.34+ 85.60+22.40+ 44.52

451.34
= x 100%
603.86

=74.74%

85.60
II. Friends = x 100%
451.34+ 85.60+22.40+ 44.52

85.60
= x 100%
603.86

=14.18%

22.40
III. Co-workers = x 100%
451.34+ 85.60+22.40+ 44.52

22.40
= x 100%
603.86

=3.71%

44.52
IV. Others = x 100%
451.34+ 85.60+22.40+ 44.52

44.52
= x 100%
603.86

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ECO 541 STATISTICAL METHOD INDIVIDUAL ASSIGNMENT 1

= 7.37%

For family the total amount spent during the holidays is the highest spending with
$451.34 and 74.74%. The second highest is friends which is with the total amount
spending $85.60 and 14.18%. The third is by the others with the total amount spending
$44.52 with the 7.37%. The lowest spending is by co-workers with total spending
$22.40 and 3.71%. We can conclude the highest amount spent during the holidays is by
family with 74.74%. It is because family members are willing to buy expensive gift for
their other family members to create some memories. The lowest spending is co-
workers with 3.71%, it is because some the others that would like to be included in a gift
and then the cost could be evenly divided.

QUESTION 3

If the average amount of time customers spent online at an Internet retailer’s site is
assumed to be normally distributed with mean of 36 minutes and a standard deviation of
6 minutes, determine:
µ= 36 σ =6

a) the probability a customer spends less than 30 minutes on the site.

= P ( x <30 ¿
=P (
30−36
6 )
= P (z <-1)
= 0.1587

b) the probability a customer spends more than 44 minutes on the site.

= P ( x >44 ¿ 0.0918
=P (
44−36
6 )
= P (z > 1.33)

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ECO 541 STATISTICAL METHOD INDIVIDUAL ASSIGNMENT 1

= 0.9082
= 1 – 0.9082
= 0.0918
1.33

c) the amount of time in minutes spent on the site by no more than 5% of all
customers.

µ= 36 σ =6 5%=0.05

z=( x−µ
σ )
5% = 0.05
z=(
6 )
x−36

-1.65 (6) = x – 36
-9.9 = x – 36
-9.9 + 36 = x x
x = 26.1

QUESTION 4
Scott Barker, a local vegetable hawker, claims that the pumpkins sold at his store have
an average weight of 14 pounds with a standard deviation of 2.15 pounds. You bought
six pumpkins from his store and found an average weight of 12.5 pounds.
a) Find the probability that the average weight of pumpkins is less than the average
weight of your sampled pumpkins.

µ= 14 pounds σ =2.15 pounds n = 6 pumpkins

P ( x < 12.5)

( )
x−µ
Z= σ
√n

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ECO 541 STATISTICAL METHOD INDIVIDUAL ASSIGNMENT 1

( )
12.5−14
Z= 2.15
√6
−1.5
Z=
−0.8777
Z= 1.7089
Z= 1.71

P (z < 1.71)
1.71 x
P = 0.436

b) Based on your answer to part a, what would you conclude about the claims made
by Scott?
The claims made by Scott that the pumpkins have an average less than average
of sample pumpkins with 0.436.