1.

The following data represent the salaries (in thousands of riyals) of a sample of 8 employees of a firm:

Employee 1 2 3 4 5 6 7 8
Salary (in thousands 28 25 31 26 23 26 22 24
of riyals)

a. Calculate the 40th percentile. Interpret it. (2 points)

L40=(8+1)*(40\100)=3.6

22 23 24 25 26 26 28 31

40th percentile=24+.6*(25-24)=24.6

40% of employees have a salary lower than 24.6 and 60% of employees have a salary higher than 24.6
b. Find the Median. (1 point) Median=25+26/2=25.5
c. Find the Interquartile range. (2 points).
Interquartile range=Q3-Q1
Q3=75th percentile
L75=(8+1)*(75/100)=6.75
Q3=26+0.75(28-26)= 27.5
Q1=25th percentile
L25= (8+1)*(25/100)=2.25
22 23 24 25 26 26 28 31
Q1= 23+0.25(24-23)=23.25
Interquartile range=Q3-Q1= 27.5-23.25=4.25

2. Consider the following sample:

x 9 6 7 5 8
y 19 14 16 12 15

a. Calculate the covariance and the coefficient of correlation for the

sample.

x bar=(9+6+7+5+8)/5=7

y bar=(19+14+16+12+15)/5=15.2
Sxy=((9-7)*(19-15.2)+(6-7)*(14-15.2)+(7-7)*(16-15.2)+(5-7)*(12-15.2)+(8-
7)*(15-15.2))/4=3.75
Sx2 =((9-7)2+(6-7)2+(7-7)2+(5-7)2+(8-7)2)/4=2.5
Sx=1.58
Sy2 =((19-15.2)2+(14-15.2)2+(16-15.2)2+(12-15.2)2+(15-15.2)2)/4=6.7
Sy=2.59
r = Sxy/ Sx* Sy=3.75/(1.58*2.59)= 0.916

b. What do these statistics tell you about the relationship between x and y?

The covariance tells us that the two variables are positively related. The coefficient of correlation tells us that
there is a strong positive linear relationship between X and Y.

3. Let X represent the number of times a student goes to a restaurant in a month period. Assume that the
probability distribution of X is as follows:

X 0 1 2 3
p(x) 0.05 0.25 0.50 0.20

Find the following probabilities:

a. P(X > 1)=0.5+0.2=0.75

b. P(1  X  2)=0.25+0.5=0.75

a. Find the mean and the standard deviation of this distribution.

E(X) = ƩxP(x) = 0*0.05+1*0.25+2*0.5+3*0.20 = 1.85

V(X) = Ʃx2P(x) – E(X)2 = (02*0.05+12*0.25+22*0.5+32*0.20) – 1.852 = 0.6275

= 0.79

b. Find the mean and variance of Y = 3X + 2.

E(Y) = 3E(X) + 2 = 3*1.85 + 2 = 7.55

V(Y) = 9V(X) = 9*0.6275 = 5.65

4. Maria is not a good student. Her exam strategy is to rely on luck for the next quiz. The quiz consists of 25
multiple-choice questions. Each question has four possible answers, only one of which is correct. Maria plans
to guess the answer to each question.

a. Using the formula, find the probability that Maria gets two correct answers.
25!
P(X = 2) = 0.252 (1  0.25) 252
2!(25  2)!

P(2) = 0.025

b. Using the table, what is the probability that she gets six or more correct answers?

Go to table of n=25, then column P=0.25 (probability of success) and row k=5 (number of success from
the questions)
Note that from table we get, P(X ≤ 5) = 0.3783

Since the questions asks for the probability of getting 6 or more correct answers:

P(X ≥ 6) = 1 – P(X ≤ 5) = 1 – 0.3783 = 0.6217

c. What is the expected value of the number of correct answers? What is the standard deviation of the
number of correct answers?
2
 E(X)=n*p=25*0.25=6.25
V(X)= 25*0.25*(1-0.25)=4.69
Sigma=2.16
1. Alaa is not a good student. Alaa’s exam strategy is to rely on luck for the next quiz. The quiz consists of 20
True/False questions. Alaa plans to guess the answer to each question. Answer the following questions using
the attached binomial table:

a. What is the probability that Alaa gets 10 answers wrong?

P=0.5
N=20
P(X=10)= P(X≤10)- P(X≤9)= 0.5881-0.4119=0.1762

b. What is the probability that Alaa gets more than 3 (X > 3) answers correct?

P(X > 3)= 1-P(X≤3)=1-0.00129=0.99871

c. What is the expected value of the number of correct answers? What is the variance of the number of
correct answers?
E(X)=N*P=20*0.5=10
V(X)= N*P*(1-P)=20*0.5*0.5=5
4. Consider the following sample data:

X 8 12 5 3
Y 6 8 12 10

a. Compute the means for X and Y, show your work

Mean X= (8+12+5+3)/4=7
Mean Y= (6+8+12+10)/4=9

b. Compute the standard deviations of X and Y, show your work.

Variance X=(1/3)*((8-7) 2+(12-7) 2+(5-7) 2+(3-7) 2)=15.33

Variance Y=(1/3)*((6-9) 2+(8-9) 2+(12-9) 2+(10-9) 2)=6.67

SX==(15.33)0.5=3.91
SY= (6.67)0.5=2.58
a. Compute the Coefficients of Variation of X and Y, show your work.

SXY=(1/3)*((8-7)( 6-9)+(12-7)( 8-9)+(5-7)(12-9)+(3-7)(10-9))=-6

rXY= SXY/( SX*SY)=-6/(3.91*2.58)=-0.59

Weakly negatively correlated

3
5. Let X represent the number of times a student goes to a restaurant in a one month period. Assume that the
probability distribution of X is as follows:

X 0 1 2 3
p(x) 0.10 0.10 0.50 0.30

a. Find the mean  and the standard deviation  of this distribution.


2222



b. Find the mean and variance of Y = 3X  10. (1.5 points)

Mean of Y=3*2+10=16

14. Heights of 5-year-old children are normally distributed with a mean of 40 inches and a standard deviation of 4
inches.

1. Find the probability that one randomly selected 5-year-old child is under 40 inches:





P(X<40)= P(Z<(40-40)/4))= P(Z<0)=0.5

2. Find the probability that one randomly selected 5-year-old child is higher than 44 inches:

P(X>44)=1- P(Z<(44-40)/4))=1- P(Z<1)=1-0.8413=0.1587

2. Which of the following about the binomial distribution is a true statement?

a. The probability of success must be constant from trial to trial.

b. The number of trials is unknown.
c. Each trial is dependent on the others.
d. a and b

4. Suppose X is a Binomial Random variable with n = 20 and p=0.2. If you would like to find P(X < 10) using the
Binomial table, what would be your answer.

a. 0.9994 b. 0.9974 c. 0.0546 d. 0.9900

5. Which of the following represents a difference between continuous and discrete random variables?
a. Continuous random variables assume an uncountable number of values, and
discrete random variables do not.
b. Probability for continuous random variables means finding the area under a curve,
while for discrete random variables it means summing individual probabilities.

4
c. The probability for any individual value of a continuous random variable is zero,
but for discrete random variables it is not.
d. All of these choices are true.

6. Which of the following about the binomial distribution is a true statement?

a. The probability of success changes from trial to trial.
b. The number of trials is unknown.
c. Each trial is independent of the others.
d. a and c
7. Suppose X is a Binomial Random variable with n = 20 and p=0.3. If you would
like to find P(X ≤ 4),
what would be your answer?

a. 0.9930
b. 0.0692
c. 0.7625
d. 0.2375
8. Suppose X is a Binomial Random variable with n = 20 and p = 0.3. If you would
like to find P(X ≤ 6),
what would be your answer?

a. 0.993
b. 0.069
c. 0.608
d. 0.238
99

11. Which of the following about the binomial distribution is a true statement?

a. The probability of success changes from trial to trial.

b. The number of trials is unknown.
c. Each trial is independent of the others.
d. a and c

1 Find the probability that a randomly selected piece of data from a standard normal population will have a z value
between 5.00 and 10.

a. Easy! It is 1.00 b. 0.6915 c. 0.50 d. 0

2. Consider an investment whose return is normally distributed with a mean of 20%

and a standard deviation of 10%. What is the probability of NOT losing money?

a. 0.4772 b. 0.0228 c. 0.5228 d. 0.9772

5
3. If the random variable X has a uniform distribution between 20 and 30, then P(18  X  30) is given by:

a. 1.0
b. 0.5
c. 0.2
d. Not enough information to answer.

4. A standard normal distribution is a normal distribution with:

a. a mean of one and a standard deviation of zero.
b. a mean always larger than the standard deviation.
c. a mean of zero and a standard deviation of one.
d. None of these choices.

5. If the random variable X has a uniform distribution between 40 and 50, then P (35  X  45) is:
a. 1.0
b. 0.1
c. 0.5
d. Not enough information to answer.

6. For any normal distribution

a) The density distribution is symmetric
b) An increase in the variance makes the distribution flatter
c) The mean, median, and mode will have the same value
d) All of the above
7. Find the probability that a randomly selected piece of data from a standard normal population will have a z
value between -10 and 0.

a. 0
b. 0.6915
c. 0.50
d. 1

8. Which of the following is true about the normal distribution?

a. It is skewed to the right.

b. The mean is always equal to 0.
c. The variance is always equal to 1.
d. None of the above.

9. Consider an investment whose return is normally distributed, with a mean of 5%

and a standard deviation of 10%. What is the probability of not losing money?

a. 0.6915
b. 0.0228
c. 0.5228
d. 0.3085
6
 10. If the random variable X has a uniform distribution between 25 and 35, then P(30  X  45) is:

a. 1.0
b. 0.7
c. 0.2
d. 0.5
11. If the random variable X has a uniform distribution between 27 and 33, then P(20  X  30) is:

a. 1.0
b. 0.7
c. 0.5
d. None of the above

12. Suppose X has a normal distribution with mean 60 and a variance of 225. Shifting all the X values to the
right by 10 units results in a normal distribution with a mean __________ and a standard deviation _____.

a. 50; 5
b. 60; 5
c. 50; 15
d. None of the above

13. Consider an investment whose return is normally distributed, with a mean of 3% and a standard deviation
of 6%. What is the probability of not losing money?

a. 0.5228
b. 0.0228
c. 0.6915
d. 0.3085

14. Find the probability that a randomly selected piece of data from a standard normal population will have a
z
value between -5 and 5.

a. 0
b. 0.6915
c. 0.50
d. 1

15. Find the probability that a randomly selected piece of data from a standard normal
population will have a z-score between -0.50 and 0.00.

a. Easy! It is 50%
b. 0.1915
c. 0.6915
d. None of the above

7
 16. Which of the following is true about the normal distribution?

a. It is skewed to the right.

b. The mean is always equal to 0.
c. The variance is always equal to 1.
d. None of the above.

17. Find the probability that a randomly selected piece of data from a standard normal population will
have a z value between 0 and 6.

a. 0.5
b. 0
c. 1
d. None of the above

18. What number corresponds to t0.01, 10?

a. 2.764
b. 1.372
c. 1.397
d. 1.833

Given9. Z is a standard normal random variable, a negative value (z) on its distribution
would indicate that z is to the left of the mean

10. The value of Z.50 is given by:

a. 0.50
b. 0.6915
c. -0.6915
d. 0
19. Let the random variable Z denote the standard normal variable. Let k be such
that

P( Z < k ) = 0.99
Then k is:

a. 0.8389
b. -2.33
c. -0.8389
d. 2.33

20. Which of the following is true about the Student t Distribution?

a. It is skewed to the right.

b. The mean is zero.
8
 c. The variance is smaller than the variance of the standard normal
distribution.
d. b and c.

3. Which 21Which of the following is NOT a characteristic of a Student t Distribution?

a. It is symmetrical.
b. The mean is zero.
c. The variance is smaller than the variance of the standard
normal distribution.
d. None of the above.

22. What number corresponds to t0.01, 8?

a. 1.397
b. 1.372
c. 2.896
d. 1.833

23. What number corresponds to t.010, 7?

a. 1.325
b. 1.372
c. 2.998
d. 1.415
24. The value of Z.10 is given by:

a. 0.5398
b. 0.4960
c. -0.5398
d. 1.29

25. Let the random variable Z denote the standard normal variable. Let k be such that

P( Z < k ) = 0.05
Then k is:

a. 0.8289 b. -1.65 c. -0.8289 d. 1.65

26. The probability density function f(x) for a uniform random variable X defined over the interval [2, 10] is
a. 0.20 c. 4
b. 8 d. None of these choices.
f(x)=1/(10-2)=1/8

1. Suppose that we do not know the distribution of X. The Central Limit Theorem is important in this case because:
9
 a. It says the sampling distribution of is approximately normal for any sample size.
b. It says the sampling distribution of is approximately normal if n is large enough.
c. It says the sampling distribution of is very similar to the distribution of X if n is
large enough.
d. It says that even if n is large, we need more information to know the sampling
distribution of .

2. Suppose the ages of students in your university follow a negatively skewed distribution with a mean of 30
years and a standard deviation of 8 years. If we randomly sample 64 students, which of the following statements
about the sampling distribution of the sample mean age is true?

a. The mean of the sampling distribution of the sample mean is equal to 30.
b. The standard deviation of the sampling distribution of sample mean is equal to 1.
c. The sampling distribution of the sample mean is approximately normal.
d. All of the above.

3. Which of the following statements about the sampling distribution of is NOT true?

a. It is generated by taking all possible samples of size n and computing their sample
means.
b. Its mean is equal to the population mean .
c. Its standard deviation is equal to the population standard deviation .
d. All of these choices are true.

4. Suppose that we do not know the distribution of X. The Central Limit Theorem is important in this case
because:
a. It says the sampling distribution of is approximately normal for any sample size.
b. It says the sampling distribution of is approximately normal if n is large enough.
c. It says the sampling distribution of is very similar to the distribution of X if n is large enough.
d. It says that even if n is large, we need more information to know the sampling distribution of .

5. Suppose that 100 items are drawn from a population of manufactured products and the weight, X, of each item
is recorded. Prior experience has shown that the weight has a non-normal probability distribution with  = 8
ounces and  = 3 ounces. Which of the following is true about the sampling of ?
a. Its mean is 8 ounces.
b. Its standard error is 0.3 ounces.
c. Its shape is approximately normal.
d. All of these choices are true.

10
6 Random samples of size 100 are taken from a population with a mean of 50 and a standard deviation of 10.
The mean and standard deviation of the sample mean, respectively, are:

a. 100 and 10
b. 50 and 10
c. 100 and 1
d. 50 and 1

7. If a random sample of size n is drawn from a normal population, then the sampling distribution of the
sample mean will be:

a. Normal only for n > 30.

b. Approximately normal for all values of n.
c. Approximately normal only for n > 30.
d. Normal for all values of n

8. Suppose that the distribution of X is not normal. The Central Limit Theorem is important in this case
because:

a. It says the sampling distribution of is approximately normal for any sample size.
b. It says the sampling distribution of is approximately normal if n is large enough.
c. It says the sampling distribution of is very similar to the distribution of X if n is large enough.
d. It says that even if n is large, we need more information to know the sampling distribution of .

9. Random samples of size 36 are taken from a population with a mean of 13 and a standard deviation of
12. The mean and standard deviation of the sample mean, respectively, are:

a. 13 and 12
b. 13 and 2
c. 13 and 1
d. none of the above

10 If a random sample of size n is drawn from a normal population, then the sampling distribution of the
sample mean will be:

e. Normal only for n > 30.

f. Approximately normal for all values of n.
g. Approximately normal only for n > 30.
h. None of the above.

11. Suppose the ages of students in your university follow a negatively skewed distribution with a mean
of 22 years and a standard deviation of 3 years. If we randomly sample 400 students, which of the
following statements about the sampling distribution of the sample mean age is correct?
11
 a. The mean of the sampling distribution of the sample mean is equal to 19 years.
b. The standard deviation of the sampling distribution of the sample mean is equal to 0.15 years.
c. The sampling distribution of the sample mean is unknown.
d. Both a and c are correct

12. If all possible samples of size n are drawn from a population with a mean of 10 and a standard
deviation of 3, then the standard deviation of the sample mean equals 1.0 for samples of size:

a. 3
b. 9
c. 10
d. None of these choices.

13. Sampling distributions describe the distributions of:

a. population parameters
b. sample statistics.
c. both parameters and statistics.
d. None of these choices.
1. Which of the following is true about the standard normal distribution?
a. It is skewed to the right.
b. The mean is 0 and the variance is 1.
c. The variance is 0 and the mean is 1.
d. None of the above.

2. Which of the following about the binomial distribution is a true statement?

a. The probability of success changes from trial to trial.
b. The number of trials is unknown.
c. Each trial is dependent of the others.
d. None of above.

3. Which of the following is true about the Student-t distribution?

a. It is skewed to the right.
b. The mean is zero.
c. The variance is smaller than the variance of the standard normal distribution.
d. b and c.

4. The following are the number of summer jobs a sample of six students applied for.

7 5 3 7 8 10

The 70th percentile is

a. 7
b. 7.5
c. 7.9
d. None of the above.
e. Let the random variable Z denote the standard normal variable. Let 𝑘 be such that 𝑃(𝑍 < 𝑘) = 0.0485
Then 𝑘 is:

a. 1.29

12
b. -1.29
c. 0.8159
d. -1.66

13