Tutorial 1

Q.1 The Kenmore Corporation, a progressive manufacturer of military and civilian

devices, is currently manufacturing a line of civilian hardware with a present daily
production of 30 units of Model Z-1200 and 120 units of Model Z-1500. The vice
president of manufacturing wants to know if profits could be increased by
changing the product mix between the two models. The following information
was compiled on the hours required to build each model and the capacities of the
departments in the plant.

Man-hours required Department

capacity
_____________ Model Z-1200 Model Z-1500 (Hours per day)
Department 1 2 0 300
Department 2 0 3 540
Department 3 2 2 440
Department 4 1.2 1.5 300
Contribution/unit $50 $40

(a) Formulate a linear programming model to determine the optimal product

mix that maximise the daily contribution.
(b) Solve the problem graphically.
(i) Obtain the optimal product mix.
(ii) Calculate the maximum daily contribution.
(c) Determine the present daily contribution of the company. By how much
would the optimal product mix increase the present contribution?
(d) Suppose the price of Model Z-1200 is reduced by $10, what will the
optimal product mix and daily contribution be? Use the graphic method.

Q.2 The manager of a large cattle ranch must select a mix of feed for beef cattle. The
minimum daily requirements of the cattle of three important nutritional elements
and the number of units of each of these elements in two feeds is given in the
following table:-

Nutritional Unit of Nutritional Elements Minimum

Element contained in one pound of requirement
Feed 1 Feed 2 __________

A 6 2 54
B 2 2 30
C 2 4 60

Cost per pound $0.04 $0.02

(a) Formulate the linear programming problem and determine the minimum
cost feed mix.
 (b) Would a 10% increase in the minimum daily requirements of each of the
nutritional elements result in a 10% increase in cost?
(c) By how much could the cost of feed 1 change before the optimal mix of
feeds would change?

Q.3 A company manufactures three products; tanks, trays and tub. Each of which
pass through three processes; X, Y and Z.
The table below gives the time required for each product in each process and for a
certain period, the total process time available. The contribution of profit of each
product are $2, $3 and $4 per unit respectively.

Process Process hours per unit Total process hours

available
Tanks_______Trays_______Tubs_________________________

X 5 2 4 12,000
Y 4 5 6 24,000
Z 3 5 4 18,000

You are required to:

(a) ascertain how many of each product should be processed to make the
maximum profit and to state the profit figure;

(b) state how much slack time, if any, is available in the processes;

(c) interpret the shadow prices.

Q.4 Electropoint, a company manufacturing domestic electrical appliances is

introducing to the market its new revolutionary Domestic Robot. The Domestic
Robot, the first of its kind, is capable of doing most of the normal household
chores. There are two models called Maris and Charles which differ slightly in
capacities.
The only effective limits on production capacity at the present time are concerned
with the specially designed positronic circuis required by both models. Only 200
can be obtained per day and there are only 80 hours of skilled labour per day.
Each Maris model required 3 positronic circuits and 1 hour of skilled labour,
while a Charles model requires 4 positronic circuits and 2 hours of skilled labour.
The contribution per model is estimated to be $60 for a Maris and $100 for a
Charles. A daily order which must be met has already been placed for 20 Maris
models.

(a) Formulate a linear programming model to maximise the company’s

contribution and solve graphically. Take into account the order for 20
Maris models.
 (b) If contribution from the Charles model increases to $140 and assuming no
other changes, what would be the overall percentage change in total
contribution per day?

(c) By how much can the estimated $100 contribution from a Charles model
change before it becomes profitable to change the production mix?

Q.5 Syarikat Siap Segera Sdn. Bhd. assembles wooden furniture from knock-down
parts imported from a neighbouring country. The production process requires
certain number of hours of assembly and varnishing.
The information below relates to the production of tables and chairs with the
various constraints:-

Labour hours required per unit labour hours Available labour hours
____________Tables Chairs per week_____

Assembly 2 1 150
Varnishing 4 3 360

Contribution/unit $9 $7

Let X1 be the number of tables and X2 be the number of chairs produced per
week. Using Simplex method, find the values of X1 and X2 so that the company is
able to maximise its weekly contribution.

Q.6 A company is attempting to determine the optimal production quantities for two
products X and Y. The profit per product is estimated to be $10 for X and $9 for
Y. The production time requirements and availabilities for the 3 manufacturing
departments are given in the following table:-
Production Time (hours)
____________Product A B C________
X 7/10 1 1/10
Y 1 2/3 1/4
__________________________________________________________
Maximum available 630 708 135

(a) Formulate a linear programming model to determine the production

quantities for product X and Y that maximise profit. (4 marks)

(b) Solve the problem Simplex method

(i) Obtain the optimal production quantities for X and Y.
(ii) State the maximum profit.
(iii) State and briefly interpret the shadow prices of the 3 constraints.
Answers
Q.1 (b) x =150 units of model Z-1200 , y = 70 units of model Z-1500,
max. contr. = $10300
(c) $4,000
(d) any point along segment joining (100, 120) and (150, 70), contr. = $8800.

Q.2 (a) 4.8 lbs of feed 1 and 12.6 lbs of feed 2, min. cost = $0.444
(b) 5.28 lbs of feed 1 and 13.86 lbs of feed 2, min. cost = $0.4884, 10%
increase in cost.
(c) $0.01  cos t of feed 1  $0.06

Q.3 (a) no tank, 2000 trays, 2,000 tubs and max. contr. = 14,000
(b) S1 = 0, S2 = 2000 and S3 = 0
2 1
(c) ,0,
3 3

Q.4 (a) 40 Maris models, 20 Charles models and max. contr. = $4400
(b) 23%
(c) $80  contribution of a Charles mod el  $120

Q.5 X1 = 0, X2 = 120, max. contr. = $840

Q.6 (b) (i) 540 units of product X, 252 units of product Y

(ii) $7668
The final tableau of a Simplex solution to the problem in (a) is as follows:-

Basis x y S1 S2 S3 P Quantity
y 0 1 30/16 -21/16 0 0 252
x 1 0 -20/16 30/16 0 0 540
S3 0 0 -11/32 9/64 1 0 18
P 0 0 70/16 111/16 0 1 7668
 Tutorial 2

Q.1 Sri Manis Distributor experiences demand of 50,000 cartoons per year for carbonated
soft drinks. It purchases the drinks from the manufacturer at a cost of $4 per carton.
The fixed ordering cost is $10 per order and the carrying cost is estimated to be 25%
of the stock value.

(a) Determine the economic order quantity, the minimum total relevant inventory
cost, the optimal number of orders per year and the optimal time between
orders. (Assume 1 year = 250 working days).

(b) The manufacturer offers the following quantity discounted prices.

$3.8 per carton for orders less than 2,500 cartons

$3.5 per carton for orders of 2,500 cartons up to 4,999 cartons

$3.0 per carton for orders of 5,000 cartons or more

(i) Determine the optimal order quantity and the minimum total annual
cost.

(ii) Assume 250 working days per year. Calculate the length of time (in
days) between successive orders.

Q.2 A manufacturer requires 15,000 units of a part annually for an assembly operation.
The manufacturer can produce this part at the rate of 100 units per day and the set-up
cost for each production run is $24. To hold 1 unit of this part in inventory costs the
manufacturer $5 per year.

(a) Assuming 250 working days per year. What is the optimum number of
production runs? What is the optimal production quantity?

(b) What is the maximum inventory level?

(c) Assume that all parts are withdrawn from stock on a ‘first-in-first-out’ basis,
what are the maximum and minimum times that an item will remain in stock?

(d) Assume that the manufacturer has the alternative of purchasing these units
from an outside vendor. If the cost of placing the order is $200, the cost of
each unit is $10, warehouse costs are $0.50 per unit per year, and cost of
capital is 10% of the inventory valuation.

(i) What is the economic lot size to purchase?

(ii) Assume 250 working days per year. Suppose it takes 20 days for an
order to arrive. What is the reorder point?
Q.3 A large furniture distributor purchases bedroom sets for which he has an annual,
essentially constant demand of 250 units. For each order, he estimates his costs of
ordering and handling as $36. Each set costs the distributor $400. His annual cost for
money tied up in inventory is 15%, and there is also an annual storage charge of $12
per unit, as well as per unit yearly insurance cost of 2% of the unit cost.

(a) If shortages are not allowed, what are the optimal order quantity and
associated total relevant cost?

(b) What would be the optimal order quantity if the sets could be ordered only in
quantities of 10 units? What would be the percentage change in the total
relevant cost, as compared to the answer in (a)?

(c) Suppose that annual demand increased by 44%, what would be the percentage
change in the optimal order quantity and total relevant cost as compared to the
answers in part (a)?

(d) The supplier of bedroom sets offers a discount of $10 per set on orders of 25
sets or more and a discount of $20 per set for orders of at least 50 sets.
Determine the optimal lot size and the total annual cost.

Q.4 X Limited and Y Limited have amalgamated and now share common head office but
still have two production plants making complementary ranges of equipment in
different parts of the country. Their products involve using some identical
components, bought from a common sole supplier. In the case of the most important
of these components they both use about 3,000 per year at a fairly consistent rate
through a 50-week production year.

These components cost $4 each. The cost of placing an order is $80 and the cost of
capital plus storage charges is 30%. The former X plant currently orders 5 deliveries
of 600 components per year, while the former Y plant orders monthly and has 12
deliveries of 250.

(a) State which of the two plants has the better ordering policy.

(b) What is the optimum ordering policy, assuming the plant

(1) continue to order separately

(2) combine their order?

(c) On being approached by the new joint company the suppliers agree that they
will give a 10% quantity discount if a once a year order of 6,000 components
is delivered to only one of the plants. The cost of delivering one van load
maximum 300 components from one of the plants to the other, using company
vans, is $40. Is the discount worthwhile? Show your workings.
 Answers
Q.1 (a) 1,000 cartons; $1,000 ; 50 times; 5 days
(b) (i) 5,000 cartons; $151,975 (ii) 25 days

Q.2 (a) 25 production runs, 600 units

(b) 240 units
(c) 4 days, 0 day
(d) (i) 2,000 units (ii) 1,200 units

Q.3 (a) $1,200, 15 sets

(b) 4.17%
(c) 20%; 20%
(d) 50 sets; $97,095

Q.4 (a) X Ltd

(b) (1) $1517.89 (2) $1,073.31 ; combine order is the
optimum ordering policy.
(c) no discount, TC = $25,073.31
10% discount, TC = $25,320
Discount is not worthwhile.
 Tutorial 3
Q.1 (a) A sample of 10 experimental animals consists of individuals with the following
body weights ( in grams):
113.4, 132.3, 122.7, 126.8, 119.6, 136.4, 129.4, 131.3, 136.1, 124.9
Calculate the mean weight, median weight, and standard deviation of these
animals.

(b) The 113.4 grams animal in part (a) becomes ill, is removed from the laboratory,
and is replaced with a 118.6 grams individual.
Calculate the new mean weight, new median weight, and new standard deviation
for the group of 10 animals.

(c) The number of heartbeats per minute were measured for a sample of 18
individuals of daphnia at 100 C, as below:
39 45 38 39 41 42 45 37 37
40 41 38 40 39 42 41 40 41
Calculate (i) the modal number and median number of heartbeats per
minute
(ii) interpret the answers obtained in part (i) above.

Q.2 (a) An inspection of samples of batik cloth shows the following number of faults in
each piece:

0, 5, 9, 6, 1, 1, 3, 5, 4, 5, 8, 9, 1, 0, 3, 1, 8, 7, 1, 2

From the above figures, calculate if possible,

(i) the arithmetic mean, (ii) the medians, (iii) the mode.

(b) Consider the following frequency distribution of a random sample of leaf weights
(in grams):
Leaf weight (grams) frequency
1.85 - < 1.95 2
1.95 - < 2.05 1
2.05 - < 2.15 2
2.15 - < 2.25 3
2.25 - < 2.35 5
2.35 - < 2.45 6
2.45 - < 2.55 4
2.55 - < 2.65 3
2.65 - < 2.75 1

Calculate the (i) mean, median and mode for the distribution and interpret
each measure.
(ii) standard deviation.
Q3. The following results of a survey of the distribution of gross earnings relate to the
industry in which your company operates:-
Gross hourly earnings
($ per hour)________

First Decile 0.35

First Quartile 0.45
Median 0.60
Third Quartile 0.65
Nineth Decile 0.80
Use the figures below, which are abstracted from your company’s payroll for the same
period, to calculate statistics for your own company. Comment on your findings.
______$ per hour____ Number of workers
less than 0.30 20
0.30 and less than 0.40 490
0.40 and less than 0.50 970
0.50 and less than 0.60 2,140
0.60 and less than 0.70 1,580
0.70 and less than 0.80 1,320
0.80 and less than 0.90 950
0.90 and less than 1.00 420
1.00 and less than 1.10 110

Q.4 (a) A company has ten sales territories with approximately the same number of sales
people working in each territory, last month the sales orders ($’000) achieved
were as follows:-

Area A B C D E F G H I J
sales 150 130 140 150 140 300 110 120 140 120

For these sales data, calculate the following:-

(i) arithmetic mean; (ii) mode; (iii) median;
(iv) lower quartile; (v) upper quartile; (vi) quartile deviation;
(vii) standard deviation.

(b) The average respiratory rates (breaths/minute) were calculated for a sample of 10
rats as shown below:

65 80 94 51 72 100 98 84 85 91

(i) Calculate the mean respiratory rate for the sample.

(ii) Calculate the variance and standard deviation for the sample.
(iii) Estimate the standard deviation for the population of rats.
Q.5 The following is the distribution of age of students admitted to courses for a first degree.
Age of admission (years) Males Females
17.5 - < 18.0 15 27
18.0 - < 18.5 67 73
18.5 - < 19.0 67 56
19.0 - < 19.5 41 49
19.5 - < 20.0 22 20
20.0 - < 21.0 11 8
21.0 - < 22.0 5 5
22.0 - < 23.0 12 2

(a) Calculate from the above data the arithmetic mean age of admission for males
and females separately. Show how the two means may be combined to give the
overall mean age for all students admitted.

(b) Combine the above data into one distribution irrespective of sex. Illustrate the
distribution with an ogive. Show how the graph may be used to estimate
the median age of admission.

Q.6 Weekly income April 2000

Range of income ($) Chemists (%) Biologists (%)
under 1,000 11.6 3.0
1,000 and under 1,200 8.9 6.0
1,200 and under 1,500 18.4 15.7
1,500 and under 1,700 14.2 11.4
1,700 and under 2,000 15.9 16.9
2,000 and under 2,500 18.6 22.9
2,500 and over 12.4 24.1

Compare the income of chemists and biologists by finding median, lower quartile, upper
quartile and quartile deviation. Comment on your results.

Answer:
Q.1 (a) mean = 127.29gm, median = 128.1gm, standard deviation = 7.3434 gm.
(b) mean = 127.81gm, median = 128.1gm, standard deviation = 6.3701 gm.
(c) (i) mode = 41, median = 40
Q.2 (a) (i) mean = 3.95 faults, (ii) median = 3.5 faults, (iii) mode = 1 fault
(b) (i) mean = 2.33gm, median = 2.36 gm, mode = 2.38 gm.
(ii) standard deviation = 0.2094 gm.
Q.3 The payroll ($/hr.): D1 = 0.43, Q1 = 0.52, median = 0.62, Q3 = 0.76, D9 = 0.87
Q.4 (a) (i) 150, (ii) 140, (iii) 140, (iv) 120, (v) 150, (vi) 15, (vii) 54.3654 ($’000)
(b)(i) mean = 82, (ii) variance = 241.3333, standard deviation = 15.5349
(iii) 15.5349
Q.5 (a) mean age for male = 19.05yrs, mean age for female = 18.82yrs,
overall mean age = 18.94yr (b) median = 18.75yrs.
Q.6 Incomes of chemists($)
Median = 1656.34, Q1 = 1273.37, Q3 = 2161.29, Q.D. = 443.96.
Incomes of biologists($)
Median = 1946.75, Q1 = 1505.26, Q3 = 2480.35, Q.D. = 487.55.
 Tutorial 4

Q.1 A record of maintenance costs is kept for each of several cash registers throughout a
department store chain. A sample of 10 registers gave the following data:

Age (years) 6 7 1 3 4 5 2 9 8 3__

Maintenance 142 231 73 90 132 167 99 191 155 160
Cost ($)

(a) State the response and explanatory variable.

(b) Find the least squares regression of maintenance cost on age. Interpret the
regression coefficient.

(c) Predict the maintenance cost for a cash register which is 8 years old. Comment on
the accuracy of your prediction.

(d) Predict the maintenance cost for a cash register which is 12 years old. Why might
this estimate be inaccurate?

Q.2 Calculate the regression line of total cost on output from the figures given below and
estimate the fixed and variable costs of production.
Output Cost of production
(‘000's unit) ($’000)______
5 11.8
7 14.7
9 18.5
11 24.0
13 26.2
15 30.1

Q.3 The following data represent the ages of 8 subjects and the mineral concentration ( in
parts per million) in their tissue samples.

Age 83 47 50 70 62 34 75 28
Mineral concentration 40 15 5 48 34 3 50 10

(a) State the response and explanatory variable.

(b) Calculate the product moment correlation coefficient between age and mineral
concentration.

(c) Rank the data and then find Spearman’s rank correlation coefficient for the 2 set
of rankings.

(c) Explain briefly why the results of parts (b) and (c) differ.
Q.4 The following data gives the actual sales of a company in each of regions of a country
together with the forecast of sales by two different methods.
Region Actual sales Forecast 1 Forecast 2
A 15 13 16
B 19 25 19
C 30 23 26
D 12 26 14
E 58 48 65
F 10 15 19
G 23 28 27
H 17 10 22

(i) Calculate the rank correlation coefficient between

a. Actual sales and forecast 1;
b. Actual sales and forecast 2.

(ii) Which forecasting method would you recommend next year?

Q.5 An investigation into lead pollution from vehicles involved recording the soil lead from
various sites along the main roads of a large town.
The results are shown in the table below:
Distance from 0 0 1 2 4 6 6 9 10 12 18
Road (m)
Soil lead (ppm) 23 19 9 4 3 2 3 2 1 1 0

(i) Calculate the Spearman‘s rank correlation coefficient, hence describe the type of
relationship between soil lead and distance from the road.

(ii) Comment on your findings in (ii) on the accuracy as compare to Pearson

correlation coefficient.

Answers
Q.1 (b) Y = 76.0757 + 14.1509 x (c) $189.2829 (d) $245.8865
Q.2 Y = 2.0973 + 1.8786x , fixed cost = 2.0973($’000), variable cost = 1.8786($/unit)
Q.3 (b) 0.88, (c) 0.81
Q.4 (i) (a) 0.52 (b) 0.84 (ii) method 2
Q.5 rank= - 0.96
 Tutorial 5

Q. 1 The probability that machine A will be performing usefully in five years’ time is 1/4
while the probability that machine B will still be operating usefully at the end of the same
period is 1/3. Find the probability that in five years’ time:-

(a) both machines will be operating;

(b) neither will be operating;
(c) only machine B will be operating;
(d) at least one of the machines will be operating.

Q. 2 A study on pain in an intensive care unit (ICU) and on a surgical unit (SU) gave the
following information:-

Gender ICU SU____

Female 9 6
Male 11 18_____

One of these participants is randomly selected.

(a) Are the events “being female” and “being in the ICU”
(i) mutually exclusive? Explain.
(ii) Independent? Justified your answer.

(b) Find (i) P(ICU and female) (ii) P(ICU or female)

(iii) P(not ICU or female) (iv) P[ not (ICU or female)]

(c) Find (i) P( female | ICU) (ii) P(ICU | female)

Q.3 Twenty items, 12 of which are defective and 8 non-defective are inspected one after the
other without replacement. If these items are chosen at random, what is the probability
that:-
(a) the first two items inspected are defective?
(b) the first two items inspected are non-defective?
(c) among the first 2 items inspected, there is one defective and one non-defective?

Q.4 A large company normally recruits 20 chemists per year. In 1998, 90 applications were
received and of these 63 had previous work experience; 36 had passed the professional
examination and 27 had both work experience and had passed the professional
examination.
(a) Prepare a Venn diagram to illustrate the above;
(b) What is the probability that an applicant taken at random,
(i) had work experience or had passed the professional examination or had
both.
(ii) had either work experience, or has passed the professional examination,
but not both.
(c) Given that the applicant must have had work experience, determine the condition
probability that an applicant taken at random from this group will have passed the
professional examination.
 (d) Given that the 20 selected new recruits comprised 6 women and 14 men, if 3 of
the new recruits were chosen at random for a particular projects , find the
probability that they would all be male.

Q.5 Syarikat Pernama Sdn. Bhd. uses three machines I, II and III to produce 60%, 30% and
10% of the total output required by the company. The percentage of defective output
from these machines are 3%, 4% and 5% respectively.
(a) If an item is selected at random from machine I, what is the probability that it
is defective?
(b) If an item is selected at random, find the probability that the item is defective.
(c) Suppose an item is selected at random and is found to be defective. Find the
probabilities that the item was produced by machines I, II and III respectively ?

Q.6 A commuter owns two cars, a compact and a standard models. About ¾ of the time he
uses the compact car to travel to work and about ¼ of the time the standard car is used.
When he uses the compact, he usually gets home by 5.30 p.m. about 75% of the time, if
he uses the standard car he gets home by 5.30 p.m. about 60% of the time. If he gets
home at 5.30 p.m., what is the probability that he used the compact car?

Q.7 In an article titled “Why Quitting Means Gaining”, it was reported that giving up
cigarette smoking often results in gaining weight. In examining a group of quitters, the
following data were found.
Weight Gain_______________
Major Significant Moderate Slight___
Men 9% 14% 22% 55%
Women 12% 11% 26% 51%___

Suppose the group were 60% men and 40% women. If a participant were randomly
selected and found to have experienced
(a) a major weight gain, find the probability that it was a man.
(b) A slight weight gain, find the probability that it was a woman.

Answers

Q.1 (a) 1/12 (b) ½ (c) ¼ (d) ½

Q.2 (b) (i) 0.2045 (ii) 0.5909 (iii) 0.75 (iv) 0.4091
(c) (i) 0.45 (ii) 0.6
Q.3 (a) 33/95 (b) 14/95 (c) 48/95
Q.4 (b) (i) 0.8 (ii) 0.5
(c) 0.4286 (d) 0.3193
Q.5 (a) 0.03 (b) 0.035 (c) 0.5143, 0.3428, 0.1428
Q.6 0.7894
Q.7 (a) 0.5294 (b) 0.3820
 Tutorial 6

Q.1 It is known that 5% of a factory’s lamps are defective. If a random sample of 20 lamps
is selected, find
(a) the probability of exactly 1 lamp is defective;
(b) the probability of fewer than 4 lamps are defective;
(c) the probability of between 16 and 18 lamps (inclusive) are good;
(d) the mean and standard deviation of this distribution.

Q.2 If the probability that an individual suffers a bad reaction from an injection of serum is
0.001, use Poisson approximation to determine the probability that out of 3,000
individuals
(a) exactly 4 individuals will suffer a bad reaction;
(b) less than 3 individuals will suffer a bad reaction.

Q.3 In an acceptance sample scheme, a sample of size 1000 is taken from a lot and the lot is
rejected if 4 or more defectives are found. Use Poisson approximation, to find
(a) the probability that the lot is rejected if it contains 0.1% defectives.
(b) the probability that the lot is accepted if it contains 0.8% defective.

Q.4 Cars arrive at a petrol station at an average rate of 30 per hour. Find the probability that
(a) exactly 5 cars arrive in a randomly selected hour;
(b) fewer than 3 cars arrive in a randomly selected hour;
(c) no cars arrive during a particular 5 minutes interval;
(d) more than 2 cars arrive in 15 minutes interval;
(e) in a period of half an hour, 10 cars arrive;

Q.5 An average of 3.2 employees of a telephone company are absent per day.
(a) Find the probability that at most one employee will be absent on a given day at
this company;
(b) Find the probability that on a given day the number of employees who will be
absent at this company is
(i) 1 to 5 (ii) at least 7 (iii) at most 3
(c) Find the mean and variance of this distribution.

Q.6 The life of a refrigerator is normally distributed with a mean of 13 years and a standard
deviation of 2.1 years.
(a) If a refrigerator is randomly selected, find the probability that:
(i) it will last at most 16 years.
(ii) it will last between 10 and 15 years.
(b) The manufacturer will replace any defective part of a refrigerator while under the
guarantee. If the manufacturer does not wish to replace more than 3% of the
refrigerators or its parts, for how many years should the company guarantee
them?

Q.7 The average weight of a packet of sugar packed by a certain machine is 500 g and the
standard deviation is 20g. Assuming that the weights are normally distributed. In a batch
of 2000 packets,
(a) how many packets weigh more than 520g;
(b) how many packets weigh less than 470g;
 (c) how many packets weigh between 520g and 530g;
(d) find the minimum weight of the 5% heaviest packets.

Q.8 A fair coin is tossed 400 times. Use the normal approximation to find the probability of
obtaining between 180 and 215 heads (both inclusive).

Q.9 10% of the cars produced are red in colour. In a sample of 1000 cars, use normal
approximation to find the probability that the number of red cars is
(a) less than 80;
(b) between 90 and 115 inclusive;
(c) 120 or more.

Q.10 An average of 0.5 customer per minute arrives at a checkout stand. What is the
probability that more than 20 customers arrive at the stand during a particular interval of
0.5 hour using normal approximation?

Answers

Q.1 (a) 0.3774 (b) 0.9842 (c) 0.2616 (d) 1, 0.9747

Q.2 (a) 0.1680 (b) 0.4232

Q.3 (a) 0.019 (b) 0.0424

Q.4 (a) 0.0000000189 (b) 0.0821 (c) 0.9797 (d) 0.0486

Q.5 (a) 0.1712

(b) (i) 0.8538 (ii) 0.0446 (iii) 0.6025
(c) 3.2, 3.2

Q.6 (a) (i) 0.9236 (ii) 0.7525

(b) 9.05 years

Q.7 (a) 317 packets (b) 134 packets (c) 184 packets (d) 533 g.

Q.8 0.9192

Q.9 (a) 0.01539 (b) 0.8149 (c) 0.01970

Q.10 0,0778
 Tutorial 7

Q.1 A normal distribution has a mean of 30 and a variance of 5.

(a) Find the probability that the average of 100 observations exceeds 30.5;
(b) Find n such that the probability that the average of n observations exceeds 30.5 is
less than 1%.

Q.2 The heights of the kindergarten children are approximately normally distributed with
mean 39 inches and standard deviation 2 inches.
(a) If an individual kindergarten child is selected at random, what is the probability
that he or she has height between 38 and 40 inches?
(b) A classroom of 30 of these kindergarten children is used as a sample. What is the
probability that the class mean height is between 38 and 40 inches?

Q.3 It has been found that 2% of the tools produced by a certain machine are defective.
What is the probability that in a shipment of 400 such tools
(a) 3% or more will prove defective?
(b) 2% or less will prove defective?

Q.4 An electrical firm manufactures light bulbs that have a length of life that is approximately
normally distributed with a standard deviation of 40 hours. If a random sample of 30
bulbs has an average life of 780.
(a) Find a 96% confidence interval for the population mean of all bulbs produced by
this firm.
(b) How large a sample is needed if we wish to be 96% confident that our sample
mean will be within 10 hours of the true mean?

Q.5 In 1996, a simple random of 100 sales invoices was taken from a very large population
of sales invoices. From this random sample, the average value for sales was found to
$18.5 with a standard deviation of $6.0.
(a) Obtain the 95% confidence interval for the true average value per sale.
(b) How large a simple random sample would have been required so as to be 95%
confident that the sample mean did not differ from the true mean by more than
$0.5?

Q.6 (a) A random sample of 16 drums of a wax-based floor cleaner, has a standard
deviation of 12 pounds and a mean weight of 240 pounds. Construct a 95%
confidence interval for the actual mean weight of all of these drums.

(b) In an air pollution study, the following amounts of suspended benzene soluble
organic matter ( in micrograms per cubic meter ) were obtained at an experiment
station for eight different samples of air:

2.2 1.8 3.1 2.0 2.4 2.0 2.1 1.2

Construct a 99% confidence interval for the corresponding true mean.

Q.7 In a random sample of 200 garages, it was found that 79 sold car batteries at prices below
list price.
(a) Estimate the population proportion of all garages selling below list price.
(b) Calculate 95% and 99% confidence limits for the population proportion of all
garages selling below list price.
(c) What sample size would have to be taken in order to be 95% certain that the
population proportion could be estimated to with 2%?

Q.8 In a random sample of 1,000 houses in a certain city, it is found that 628 own colour
television sets.
(a) Find the 98% confidence interval for the fraction of houses in this city that have
colour television sets.
(b) How large a sample is needed if we wish to be 98% confident that our sample
proportion will be within 0.05 of the true proportion of houses in the city that
have colour television sets?

Q.9 In a 1998 survey, members of the public and teachers were asked ‘ How much do you
think computers have helped improve student learning?’. Fifty-eight % of the members
of the public and thirty-one % of the teachers stated that computers have helped a ‘great
amount’. Assume that these estimates were based on random samples of 200 members of
the public and 192 teachers.
Determine a 99% confidence interval for the difference between the two population
proportions.

Q.10 A researcher wanted to estimate the difference between the percentages of users of two
toothpastes who will never switch to another toothpaste. In a sample of 500 users of
Toothpaste A taken by this researcher, 100 said that they will never switch to another
toothpaste. In another sample of 400 users of Toothpaste B taken by the same researcher,
68 said that they will never switch to another toothpaste.
Construct a 97% confidence interval for the difference between the proportions of all
users of the two toothpastes who will never switch.

Answers

Q.1 (a) 0.01255 (b) 108

Q.2 (a) 0.3830 (b) 0.99386
Q.3 (a) 0.0764 (b) 0.5
Q.4 (a) (765.00 , 795.00) (b) 68
Q.5 (a) (17.32 , 19.68 ) (b) 553
Q.6 (a) (233.61, 246.39 ) (b) (1.436, 2.765 )
Q.7 (a) 0.395 (b) (0.3272, 0.4628); (0.3059, 0.4841)
(c) 2295
Q.8 (a) (0.5924, 0.6636) (b) 506
Q.9 (0.145, 0.395)
Q.10 (-0.026, 0.086)
 Tutorial 8

Q.1 An ambulance service claims that it takes, on the average 8.9 minutes to reach its
destination in emergency calls. To check on this claim, the agency which licenses
ambulance service has them timed on 50 emergency calls, getting a mean of 9.3
minutes with a standard deviation of 1.6 minutes. What can they conclude at the level
of significance α = 5% .

Q.2 Suppose that hourly wages in the chemical industry are normally distributed, with a
mean of $7.60 and a standard deviation of $0.60. A large company in this industry
took a random sample of 20 of its workers and determined that their average hourly
wage was $7.50. Using 5% level of significance, test whether this company’s average
hourly wage is less than that of the entire industry.

Q.3 The mean weekly sale of chocolate bar in a candy stores was 146.3 bars per store.
After an advertising campaign, the mean weekly sales in 22 stores for a typical week
increased to 153.7 and showed a standard deviation of 17.2. Was the advertising
successful at 1% significance level ?

Q.4 A survey has provided data on the television watching habits of ten year old children
of different social classes. A sample of 220 children in class A were found to watch
for a mean period of 3.8 hours per day with a standard deviation of 0.5 hour, while a
sample of 63 children in social class B watched for a mean period of 3.2 hours with a
standard deviation of 0.42 hour. Test at the 1% level, whether children in social class
A spend more time watching television than do those in social class B.

Q.5 The following data were collected concerning waist sizes of men and women. Do
these data present sufficient evidence to conclude that men have larger mean waist
sizes than women at 0.05 level of significance? Assume waist sizes are normally
distributed.

Men Women
Sample size 18 11
Mean (inches) 33.83 26.27
Variance 6.38 4.02

Q.6 The following data represent the weights in lbs (X) of personal luggage carried on a
large aircraft by the members of two football clubs:

Club A (XA) 34 39 41 28 33

Club B (XB) 36 40 35 31 39 36

XA = 175, XB = 217 , XA2 = 6231 , XB2 = 7899

Can we conclude that Club B carries more luggage than Club A on the average? Use
a 1% level of significance and assume the distributions of weights to be
approximately normal with equal variances.
Q.7 A research indicates that 50% of the students change their major area of study after
their first year in the program. A random sample of 100 students in ABC college
showed that 48 had changed their major area of study after their first year of the
program. Has there been a significant decrease in the proportion of students who
change their major area of study after the first year in the program using 5% level of
significance?

Q.8 XYZ Company claims that 90% of its orders are delivered within 30 minutes of the
time the order is placed. A sample of 100 orders revealed that 82 were delivered
within the promised time. Is XYZ company’s claim valid at 0.01 level of
significance?

Q.9 (a) A Sales Department notices that 6% of interviews with sales prospects have
matured into sales during 1998. In 1999, the Sales Department examined the
results of a random sample of 2,000 interviews and noted that 140 sales
contracts were gained. Do you think that the proportion of successful
interviews has significantly improved from 1998 to 1999? (Use 5% sig. level)

Q.10 A research wanted to find the effect of a special diet on systolic blood pressure. She
selected a sample of seven adults and put them on this dietary plan for three months.
The following table gives the systolic blood pressures of these seven adults before and
after the completion of this plan.
Before 210 180 195 220 231 199 224
After 193 186 186 223 223 183 233

Test the hypothesis that the special diet decreases the systolic blood pressure at 5%
sig. level.

Answers

Q.1 Z = 1.77, H0 is not rejected.

Q.2 Z = -0.75, H0 is not rejected.
Q.3 t = 2.02, H0 is rejected.
Q.4 Z = 9.56, H0 is rejected.
Q.5 t = 8.42, H0 is rejected.
Q.6 t = 0.46, H0 is not rejected.
Q.7 Z = -0.4, H0 is not rejected
Q.8 Z = -2.67, H0 is rejected
Q.9 Z = 1.88, H0 is rejected
Q.10 t = -1.15, H0 is not rejected
 Tutorial 9

Q.1* A survey was conducted to determine student, faculty, and administration attitudes on a
new university parking policy. The distribution of those favouring or opposing the policy
was as shown in the table below:

Opinion Student Faculty Administration

Favour 252 107 43
Oppose 139 81 40
Do the data provide sufficient evidence to indicate that the proportion of favouring
attitudes on the parking policy is the same for the 3 groups at % sig. level?

Q.2 The following table shows the performance level of 90 workers and their education
background:
Work Primary Secondary Tertiary Total
performance education education education
Poor 12 7 2 21
Average 33 10 8 51
Good 10 3 5 18
Total 55 20 15 90

Test the hypotheses that work performance and education are independent at 5% level of
significance.

Q.3 A study is conducted to determine whether the job position of employees is associated
with sex. A random sample of 200 employees is selected and classified. The observed
frequencies are given in the table below:-
Job position
Sex Clerical (C) Technical (T) Managerial (M) Total

Male 28 50 32 110
Female 42 30 18 90
Total 70 80 50 200

(a) Determine the following probabilities :

(i) P (T) (iv) P ( female / T )
(ii) P ( female or T ) (v) P ( T / female )
(iii) P ( C and T ) (vi) P ( female and M )

(b) If two different employees are selected randomly from the total, find the
probability that they will both be classified in the same job position.

(c) Test the hypothesis that job position is not associated with sex at 5% level of
significance.
Q.4* Eastern Electronics has the following records on the number of complaints received
concerning a particular brand of calculator it produces:-

Number of daily complaints Observed frequency

0 3
1 10
2 25
3 30
4 15
5 12
6 5
7 0

At an 5% level, test the hypothesis that the number of daily complaints has the Poisson
distribution with a mean rate of three per day.

Q.5* The following table lists the age distribution for a sample of 100 persons arrested for
drunk driving:

Age 16-25 26-35 36-45 46-55 56 and older

Arrests 32 25 19 16 8

Using the 1% significance level, can we reject the null hypothesis that the proportion
of people arrested for drunk driving is the same for all age groups?

Answers
Q.1  2 = 6.21, H0 is not rejected

Q.2  2 = 3.835 , H0 is not rejected

Q.3 (a) (i) 0.4, (ii) 0.7 (iii) 0 (iv) 0.375 (v) 1/3 (vi) 0.09
(b) 0.3417
(c)  2 = 9.8182, H0 is rejected

Q.4  2 = 7.23 , H0 is not rejected

Q.5  2 = 16.5 , H0 is rejected

 Tutorial 10

Q.1 BIG Motors has in stock three cars of the same make and model. The president would
like to compare the gas consumption of the three cars (labelled car A, car B, and car C)
using four different types of gasoline. For each trial, a gallon of gasoline was added to an
empty tank, and the car was driven until it ran out of gas. The following table shows the
number of miles driven in each trial:-
Distance (miles)
______________________________
Types of gasoline car A car B car C
______________________________________________________
Regular 22.4 20.8 21.5
Super regular 17.0 19.4 20.7
Unleaded 19.2 20.2 21.2
Premium unleaded 20.3 18.6 20.4

(a) Is there a significant difference among types of gasoline using 5% level of

significance?
(b) Is there a significant difference in the cars using 5% level of significance?

Q.2 There are three hospitals ( X, Y, & Z) in area A. The following data show the number of
outpatient surgeries performed at each hospital last week:
Number of surgeries performed
_____________________________________________________
Day X Y Z
_____________________________________________________
Monday 14 18 24
Tuesday 20 24 14
Wednesday 16 22 14
Thursday 18 20 22
Friday 20 28 24

(a) Can we conclude that there is a significant difference in the mean number of surgeries
performed among the three hospitals?

(b) Can we conclude that there is significant difference in the mean number of surgeries
performed among the five days?
(Use 1% sig. level)

Q.3 A department-store chain is considering building a new store at one of four different
sites. One important factor in the decision is the average annual household income of
the residents of the four areas. In a preliminary study, various residents in each area
are asked what their annual household incomes are. The results of this survey are shown in the
table below. Is there sufficient evidence to allow us to conclude that differences exist in average
annual household incomes among the four areas at α = 1%?

Area 1 Area 2 Area 3 Area 4

25 32 27 18
27 35 32 23
31 30 48 29
17 46 25 26
29 32 20 42
30 22 12
19 18
51
27

Q.4 The following is an ANOVA table:

Sum of Degrees of Mean
Source squares freedom square
________________________________________________________
Treatments 50 2 25
Blocks 24 3 8
Error 48 6 8
________________________________________________________
Total 122 11

(a) Conduct a test for treatments. Is there a significant difference among the treatment
means? Use the 0.05 significance level.
(b) Conduct a test for blocks. Is there a significant difference among the block means?
Use the 0.05 significance level.

Answers
Q.1 (a) F* = 2.41, H0 is not rejected
(b) F* = 1.39 , H0 is not rejected.
Q.2 (a) F* = 1.97, H0 is not rejected
(b) F* = 1.29, H0 is not rejected
Q.3 F* = 0.82 , H0 is not rejected
Q.4 (a) F* = 3.125, H0 is not rejected
(b) F* = 1, H0 is not rejected