Table of Contents

UNIT 1 – INTRODUCTORY TOPICS IN STATISTICS ............................................................... 4

Lesson 2 – Some Introductory Statistical Definitions ....................................................................................... 4

Lesson 4 – Presentation of Statistical Information in a Report ........................................................................ 4

UNIT 2 – ORGANIZATION AND PRESENTATION OF DATA ................................................ 6

Lesson 5 – Organizing Quantitative Data for Analysis ..................................................................................... 6

Lesson 6 – Frequency Distribution Tables Extended ........................................................................................ 9

Lesson 7 – Statistical Graphs: Histograms and Frequency Polygons .............................................................. 12

Lesson 8 – Statistical Graphs: Cumulative Frequency Polygons ..................................................................... 15

Lesson 9 – Measures of Position ................................................................................................................... 17

Unit 1 – 2 Review .......................................................................................................................................... 17

UNIT 3 – MEASURES OF CENTRAL TENDENCY .................................................................... 23

Lesson 10 – Measures of Central Tendency ................................................................................................... 23

Lesson 11 – Calculation of Averages for Ungrouped Data ............................................................................. 23

Lesson 12 – Calculation of Averages for Grouped Data ................................................................................. 25

Lesson 13 – Other Measures of Central Tendency: The Weighted Mean ....................................................... 27

Lesson 14 – Other Measures of Central Tendency: The Geometric Mean ...................................................... 28

UNIT 4 – MEASURES OF DISPERSION ..................................................................................... 29

Lesson 15 – Measuring Dispersion in a Distribution ...................................................................................... 29

Lesson 16 – The Computing Formula for the Standard Deviation .................................................................. 30

Lesson 17 – The Sample Standard Deviation ................................................................................................. 32

Lesson 18 – Application of the Mean and Standard Deviation ...................................................................... 35

Unit 3 – 4 Review .......................................................................................................................................... 37

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UNIT 5 – BASIC PROBABILITY .................................................................................................. 47

Lesson 19 – Introduction to Probability ........................................................................................................ 47

Lesson 20 – Counting Outcomes ................................................................................................................... 48

Lesson 21 – Events and Venn Diagrams ........................................................................................................ 49

Lesson 22 – Rules Governing Probability Calculations ................................................................................... 50

Lesson 23 – Conditional Probability and the Multiplication Rules ................................................................. 51

Lesson 24 – Combining the Rules of Probability ............................................................................................ 52

Lesson 25 – Bayes’ Rule for Revising Probabilities ........................................................................................ 54

Unit 5 Review ............................................................................................................................................... 56

UNIT 6 – PROBABILITY DISTRIBUTIONS FOR DISCRETE RANDOM VARIABLES .... 64

Lesson 26 – An Introduction to Probability Distributions .............................................................................. 64

Lesson 27 – The Binomial Probability Distribution ........................................................................................ 67

Lesson 28 – The Hypergeometric Probability Distribution............................................................................. 69

Lesson 29 – The Poisson Probability Distribution .......................................................................................... 71

Discrete Probability Distribution Exercises ................................................................................................... 72

UNIT 7 – THE NORMAL PROBABILITY DISTRIBUTION.................................................... 73

Lesson 31 – The Standard Normal Probability Distribution ........................................................................... 73

Lesson 32 – Application of the Normal Probability Distribution .................................................................... 77

Unit 6 – 7 Review .......................................................................................................................................... 82

UNIT 8 – SAMPLING DISTRIBUTIONS .................................................................................... 86

Lesson 35 – The Central Limit Theorem......................................................................................................... 86

Lesson 36 – The Sampling Distribution of the Proportion ............................................................................. 90

UNIT 9 – CONFIDENCE INTERVALS ......................................................................................... 92

Lesson 37 – Point Estimates and Confidence Intervals .................................................................................. 92

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Lesson 38 – Confidence Intervals for Means, σ Unknown ............................................................................. 94

Lesson 39 – Confidence Intervals for Proportions ......................................................................................... 96

Lesson 40 – Sample Size Determination ........................................................................................................ 98

Unit 8 – 9 Review .......................................................................................................................................... 99

UNIT 10 – TESTS OF HYPOTHESIS ........................................................................................ 104

Lesson 41 – The Logic of Hypothesis Testing ............................................................................................... 104

Lesson 42 – Tests of Hypothesis for a Population Mean .............................................................................. 105

Lesson 43 – Test of Hypothesis for a Population Proportion ....................................................................... 109

UNIT 11 – TWO SAMPLE TESTS OF HYPOTHESIS............................................................ 112

Lesson 44 – Comparing Two Population Means, σ Known .......................................................................... 112

Lesson 45 – Comparing Two Population Means, σ Unknown ...................................................................... 115

Lesson 46 – Comparing Two Population Proportions .................................................................................. 118

Unit 10 – 11 Review .................................................................................................................................... 122

UNIT 12 – SIMPLE LINEAR REGRESSION AND CORRELATION .................................... 129

Lesson 47 – Introduction to Simple Linear Regression ................................................................................. 129

Lesson 48 – The Simple Linear Regression Equation .................................................................................... 132

Lesson 49 – Correlation Analysis ................................................................................................................. 136

Cumulative Review ..................................................................................................................................... 138

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Unit 1 – Introductory Topics in
Statistics
Lesson 2 – Some Introductory Statistical Definitions
A. True and False
1. T 6. T 11. T 16. F
2. T 7. T 12. F 17. F
3. T 8. F 13. F 18. F
4. F 9. T 14. F 19. T
5. T 10. T 15. F 20. T

B. Statistical Definitions
1. There were 850 potential graduates at SIAST Palliser Campus in 1999.
2. The average weekly earnings in Saskatchewan reached $920 in March 2012.
3. A statistical study was undertaken to determine the effects of increases in the costs of
labour on consumer prices in the housing market.
4. Descriptive
5. Descriptive
6. Inferential
7. a) All single parent families in urban Saskatchewan.
b) Not realistically. Families moving in and out of a region would make identification
difficult.
c) By drawing an inference from sample data.
8. The number of wheels is a constant while weight fluctuates from car to car.
9. a) The variable is the type of computer operating system.
b) The data is qualitative.
c) The level of measurement is nominal.
10. The symbol X is used to represent any value in the collection and the symbol Xi is used the
represent a particular observation.

Lesson 4 – Presentation of Statistical Information in a Report

1. Table number; title
2. Stub heading; stub items; field columns; captions
3. Notations
4. Heading
5. See next page.

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 Table 1 – 4: GEC Pension Fund1
Asset Allocation2
Fund Type
Assets ($million) Per Cent of Total Assets
Money Market 16.3 12.9
Bond 20.3 16.1
Fixed Income 25.6 20.3
Equity 45.6 36.2
Balanced 18.1 14.4
Total 125.9 100
1
For Canadian Employees
2
As of December 31, 2002
Source: GEC 2002 Annual Report

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Unit 2 – Organization and Presentation
of Data
Lesson 5 – Organizing Quantitative Data for Analysis
1. a) A raw data format would be used because of the small number of values.
b) An ungrouped frequency table would be used because there are many repetitions of a
few distinct (discrete) observations.
c) A grouped frequency table would be used because there are many distinct observations.

2. An ungrouped frequency table would be used because there are many repetitions of a few
distinct observations.

Number of Broken Eggs, X Frequency, f

0 14
1 9
2 3
3 3
7 1
Σf = 30

3. a) A grouped frequency table because there are many observations are very little
repetition.
b) X = the cost of heating a three bedroom bungalow in Moose Jaw.
c) n = 78, the number of observations
d) R = X78 – X1 = 123.14 – 39.08 = $84.06
log 78
e) N = 1 + = 7.29 classes (~ 7 or 8 classes)
log 2
R 84.06 $
f) C=N= 7.29
= 11.53 class
g) The closest even value to 11.53 is $12.00/class, although $10.00/class would be
reasonable too. We will use $12.00/class so that we have 7 or 8 classes.
h) The lower limit of the class should start at an even number for even-sized class intervals.
Any of 28, 30, 32, 34, 36 or 38 would be reasonable as long as the smallest observation
falls within the first class. We will start at $38.00 in this solution.
i) See the table that follows. The tally has been left out.

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 Cost of Heating a Three Bedroom Bungalow in Moose Jaw in January1
Cost ($) Frequency
38.00 – 50.00 7
50.00 – 62.00 6
62.00 – 74.00 10
74.00 – 86.00 31
86.00 – 98.00 12
98.00 – 110.00 7
110.00 – 122.00 4
122.00 – 134.00 1
Σf = 78
1
2009

4. A grouped frequency table will be used.

R = X 40 − X1 = 88,000 − 51,000 = $37,000

log 40
N=1+ = 6.32 classes
log 2
37,000 $
C= = 5854.43
6.32 class
We will use $6,000/class starting at $50,000.

Income Levels in a Community

Income ($1000) Frequency
50 – 56 3
56 – 62 10
62 – 68 9
68 – 74 8
74 – 80 4
80 – 86 5
86 – 92 1
Σf = 40

5. A grouped frequency table will be used.

R = X150 − X1 = 178 − 61 = $117

log 150
N=1+ = 8.23 classes
log 2
117 $
C= = 14.22
8.23 class
We will use $15/class starting at $60.

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Monthly Cell Phone Payments by a Group of Salepersons
Payment ($) Frequency
60 – 75 7
75 – 90 13
90 – 105 22
105 – 120 35
120 – 135 38
135 – 150 23
150 – 165 5
165 – 180 7
Σf = 150

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Lesson 6 – Frequency Distribution Tables Extended
1. a) ΣX = 149.60
b)

X (g) f fX
451 2 902
467 7 3269
472 9 4248
475 2 950
Σf = 20 ΣfX = 9369
c)

Wage ($/hour) f X fX
10.00 – 20.00 5 15.00 75.00
20.00 – 30.00 12 25.00 300.00
30.00 – 40.00 15 35.00 525.00
40.00 – 50.00 8 45.00 360.00
Σf = 40 ΣfX = 1260

2.

Hours Worked f P %f <Cf >Cf

20 5 0.10 10 5 50
22 12 0.24 24 17 45
28 18 0.36 36 35 33
32 10 0.20 20 45 15
40 5 0.10 20 50 5
Σf = 50 ΣP = 1.00 Σ%f = 100%

a) 0.36 or 36%
b) 45 people
c) 33 people

3.

X (days) f P %f <Cf >Cf

0–5 38 0.262 26.2 38 145
5 – 10 65 0.448 44.8 103 107
10 – 15 23 0.159 15.9 126 42
15 – 20 12 0.083 8.3 138 19
20 – 25 5 0.034 3.4 143 7
25 – 30 2 0.014 1.4 145 2
Σf = 145 ΣP = 1.000 Σ%f = 100.0%

a) 0.034 or 3.4%

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 b) 42
c) 143

4. Proportion can be used to compare when the sample sizes are different.

Local Wages Vs. National Wages

Wage ($/hr) Locally PL Nationally PN
4.00 – 6.00 3 0.03 200 0.017 37
6.00 – 8.00 12 0.14 915 0.079 46
8.00 – 10.00 27 0.31 2800 0.243 16
10.00 – 12.00 26 0.30 3100 0.269 21
12.00 – 14.00 11 0.13 3400 0.295 27
14.00 – 16.00 5 0.06 700 0.060 79
16.00 – 18.00 2 0.02 400 0.034 74
Σf = 86 ΣPL = 0.99 Σf =11,515 ΣPN = 1.000 00

Within the range, national rates tend to be slightly higher than local wages since 56.448% of
the national wages fall in the range of $10 to $14 while 61% of the local wages fall in the
range of $8 to $12.

5. a) X = age of father; f = number of births

b) Σf
c) f3 = 5,547
d) X2 = 22.5 years
e) The table follows.

Table 1: Live Births by Age of Parent, Saskatchewan in 1987

Age of Father Number of Births P <Cf >Cf
< 20 2,633 0.154 57 2,633 17,034
20 – 25 2,301 0.135 08 4,934 14,401
25 – 30 5,547 0.325 64 10,481 12,100
30 – 35 4,358 0.255 84 14,839 6,553
35 – 40 1,599 0.093 87 16,438 2,195
40 – 45 422 0.024 77 16,860 596
45 – 50 115 0.006 75 16,975 174
50 + 59 0.003 46 17,034 59
Σf = 17,034 ΣP = 0.999 98

f) <Cf4 = 14,839. 14,839 births occurred where the age of the father was 34 years or
younger.

g) No. The first and last class are open ended. Even if they were not, the total age would
only be an estimate because the individual ages are lost in the grouping.

6. The appraised value of a vehicle.

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7.

Appraised Value ($) Number of Vehicles %f fX

2,500 5 11.1 12,500
3,200 6 13.3 19,200
6,500 2 4.4 13,000
12,500 10 22.2 125,000
16,000 15 33.3 240,000
20,000 7 15.6 140,000
Σf = 45 Σ%f = 99.9 ΣfX = 549,700

8. ΣfX = $549,700

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Lesson 7 – Statistical Graphs: Histograms and Frequency Polygons
1. a)

Weight of Some Semiprecious Gemstones

30

25

20

f 15

10

Weight (g)

b) Mode = 228.0 g, Midrange = 230.0 g, Range = 24.0 g

The shape is approximately symmetrical with a slight positive skew.

2. a)

Aptitude Test Scores

45
40
Number of Applicants

35
30
25
20
15
10
5
0

Score (%)

b) Mode = 55%, Midrange = 65%, Range = 70%

The shape is positively skewed.

Page | 12
3. a)

Commuting Time of Employees

0.3

0.25
Relative Frequency

0.2

0.15

0.1

0.05

Time (minutes)

b) Mode = 27.5 minutes, Midrange = 32.5 minutes, Range = 35.0 minutes

The shape is positively skewed.

4. a)

Traffic Noise Along a Freeway

0.3

0.25
Relative Frequency

0.2

0.15

0.1

0.05

Noise (dB)

b) Mode = 105 dB, Midrange = 85 dB, Range = 70 dB

The shape is negatively skewed.

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5. a)

Municipal Tax Assessments

25

20

15
f
10

Amount ($)

b) Mode = $1000, Midrange = $1600, Range = $3200

The shape is positively skewed.

6. They are equal.

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Lesson 8 – Statistical Graphs: Cumulative Frequency Polygons
1.

Weight of Some Semiprecious Stones

70 100
90
60
80
50 70

40 60
Cf 50 %Cf
30 40
20 30
20
10
10
0 0
218.0 222.0 226.0 230.0 234.0 238.0 242.0
Weight (g)

a) ~228.5 g
b) ~225.0 g
c) ~235.0 g
d) ~57%

2.

Page | 15
 Aptitude Test Scores
140 100
130 90
120
110 80
100 70
90
80 60
Cf 70 50 %Cf
60 40
50
40 30
30 20
20
10 10
0 0
30 40 50 60 70 80 90 100
Score (%)

62
a) 78 failed, 140 = 0.442 857 142 ≈ 44.3% 𝑝𝑎𝑠𝑠𝑒𝑑
b) ~72%
c) 36
d) 50% to 69%, therefore range = 19%.

Page | 16
Lesson 9 – Measures of Position
1. a) Position(Q1 ) = 0.25(60 + 1) = 15.25
Q1 = X15.25 = X15 + 0.25(X16 − X15 ) = 6.50 + 0.25(6.50 − 6.50) = $6.50/hr

b) Position(P66 ) = 0.66(60 + 1) = 40.26

Q1 = X 40.26 = X 40 + 0.26(X41 − X 40 ) = 7.75 + 0.26(7.75 − 7.75) = $7.75/hr

2. a) Position(P20 ) = 0.2(152) = 30.4

30.4 − 16
P20 = 40 + 20 = 43.945 205 48 ≈ 43.9%
73

b) Position(P50 ) = 0.5(152) = 76
76 − 16
median = 40 + 20 = 56.438 356 16 ≈ 56.4%
73

c) Position(P70 ) = 0.7(152) = 106.4

106.4 − 89
P70 = 60 + 20 = 68.285 714 29 ≈ 68.3%
42

d) Position(P88 ) = 0.88(152) = 133.76

133.76 − 131
P88 = 80 + 20 = 82.628 571 43 ≈ 82.6%
21

3. The data must be rank ordered.

0.56 0.58 0.62 0.63 0.65 0.65 0.71 0.71 0.78

a) Position(P50 ) = 0.5(9 + 1) = 5
Median = X 5 = 0.65 ≈ $0.65

b) Position(Q 3 ) = 0.75(9 + 1) = 7.5

Q 3 = X 7.5 = X 7 + 0.5(X 8 − X 7 ) = 0.71 + 0.5(0.71 − 0.71) = 0.71 ≈ $0.71

Unit 1 – 2 Review
1. a) The weight of a four-liter can of paint.
b) All the paint cans in the current shipment.
c) 50 paints randomly selected from the current shipment.

Page | 17
 d) The retailer wants to determine if the paint cans in the current shipment are under
filled.

2. a) Sample.
b) Population.
c) Population.
d) Sample.

3. a) Quantitative continuous.
b) Qualitative multinomial.
c) Qualitative binomial.
d) Quantitative discrete.

4. a) Ratio.
b) Nominal.
c) Ordinal.
d) Ratio.
e) Interval.

5. R = 𝑋50 − 𝑋1 = 28 − 3 = 25 hours
log 50
N=1+ = 6.64 classes
log 2
R 25 hours
C= = = 3.77
N 6.64 class

Some options include using a class width of 4 hours/class or 5 hours/class. If using 4, the
first class should start at 0 or 2. If using 5, the first class should start at 0.

Online Hours f Online Hours f Online Hours f

0–4 1 2–6 5 0–5 2
4–8 6 6 – 10 6 5 – 10 9
8 – 12 10 10 – 14 15 10 – 15 19
12 – 16 17 14 – 18 10 15 – 20 11
16 – 20 7 18 – 22 8 20 – 25 6
20 – 24 4 22 – 26 5 25 – 30 3
24 – 28 4 26 – 30 1 Σf = 50
28 – 32 1 Σf = 50
Σf = 50

6. a) The population is all of the readings of the concentration of sulfur dioxide in the city.
b) The data represents a sample.

Page | 18
 c) The variable is the concentration of sulfur dioxide in the city.
d) The variable is quantitative.
e) The variable is continuous.
f) The data presented is raw data.
1
g) Median position = 2 (n + 1) = 0.5(18 + 1) = 9.5
1 1
Median value = x9.5 = (x9 + x10 ) = (0.19 + 0.20) = 0.195 ≈ 0.195 ppm
2 2
1
h) Q1 position = 4 (n + 1) = 0.25(18 + 1) = 4.75
Q1 = X 4.75 = X 4 + 0.75(X5 − 𝑋4 ) = 0.17 + 0.75(0.17 − 0.17) = 0.17 ≈ 0.170 ppm
3
Q 3 position = (n + 1) = 0.75(18 + 1) = 14.25
4
Q 3 = 𝑋14.25 = X14 + 0.25(X15 − X14 ) = 0.23 + 0.25(0.24 − 0.23) = 0.2325
≈ 0.233 ppm
IQR = Q 3 − Q1 = 0.2325 − 0.17 = 0.0625 ≈ 0.063 ppm

7.
Number of Instructions f P <Cf
18 4 0.0500 4
19 12 0.1500 16
20 15 0.1875 31
21 20 0.2500 51
22 13 0.1625 64
23 8 0.1000 72
24 6 0.0750 78
25 2 0.0250 80
Σf = 80 ΣP = 1.0000

a) The population is all of the observations of the number of instructions the computer
system can perform in 1 nanosecond.
b) The data represents a sample.
c) The variable is the number of instructions a computer system can perform in 1
nanosecond.
d) The variable is quantitative.
e) The variable is discrete.
f) The data presented as an ungrouped frequency distribution.
g) See the table for the answer.
1
h) Median position = 2 (∑ f + 1) = 0.5(80 + 1) = 40.5

Page | 19
 1 1
Median value = X 40.5 = (X 40 + X 41 ) = (21 + 21) = 21 ≈ 21.0 instructions
2 2
i) P80 position = 0.8(∑ f + 1) = 0.8(80 + 1) = 64.8
P80 = X 64.8 = X 64 + 0.8(X65 − X 64 ) = 22 + 0.8(23 − 22) = 22.8 ≈ 22.8 instructions

8.
Stopping Distance (m) f <Cf
45 – 50 2 2
50 – 55 15 17
55 – 60 32 49
60 – 65 36 85
65 – 70 24 109
70 – 75 10 119
75 – 80 1 120
Σf = 120

a) The population is all of the observations of the braking distance required to stop a car
from 110 km/h.
b) The data represents a sample.
c) The variable is the braking distance required to stop a car from 110 km/h.
d) The variable is quantitative.
e) The variable is continuous.
f) The data is presented as a grouped frequency distribution.
g) See the graph for the answer.
Mode = 62.5 m; Range = 80 – 45 = 35 m; Midrange = 62.5 m
The histogram/frequency polygon is approximately symmetrical.

Page | 20
 Distance Required to Stop a Car from 110 km/h
40
35
30
25
Frequency 20
15
10
5
0

Stopping Distance (m)

Distance Required to Stop a Car from 110 km/h

120 100

90
100
80

70
80
60

Cf 60 50 %Cf

40
40
30

20
20
10

0 0
45 50 55 60 65 70 75 80
Stopping Distance (m)

1
i) Median position = 2 ∑ f = 0.5(120) = 60
60 − 49
Median value = 60 + 5 = 61.527̅ ≈ 61.5 m
36
j) 1st decile position = 0.1(120) = 12
12 − 2
1st decile value = 50 + 5 = 53. 3̅ ≈ 53.3 m
15

Page | 21
9th decile position = 0.9(120) = 108
108 − 85
9th decile value = 65 + 5 = 69.7916̅ ≈ 69.8 m
24
IDR = D9 − D1 = 69.7916̅ − 53. 3̅ = 16.4583̅ = 16.5 m

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Unit 3 – Measures of Central Tendency
Lesson 10 – Measures of Central Tendency
1. Mode
2. The median would best represent the salaries of the employees because the data set is
skewed by the one salary that is much larger than the other salaries.

Lesson 11 – Calculation of Averages for Ungrouped Data

1. The data must be rank ordered to calculate the median.
345 456 456 645 789 987

∑ X 3678
̅=
X = = 613 ≈ 613.0 g
n 6

Position(median) = 0.5(6 + 1) = 3.5

X 3 + X 4 456 + 645
Median = X 3.5 = = = 550.5 ≈ 550.5 g
2 2

Mode is 456 g

2.
∑ X 205 $1000
𝜇= = = 41 ≈ 41.0 ( )
N 5 annum

Position(median) = 0.5(5 + 1) = 3
$1000
Median = X 3 = 25 ≈ 25.0 ( )
annum

There is no mode.

Page | 23
3.
Expense ($) Frequency fX <Cf
123 5 615 5
198 11 2178 16
200 7 1400 23
220 2 440 25
Σf = 25 ΣfX = 4633

∑ fX 4633
̅=
X = = 185.32 ≈ $185.32
∑f 25

Position(median) = 0.5(25 + 1) = 13
Median = X13 = 198 ≈ $198.00

Mode is $198.00

4.

Number of Mistakes Frequency fX <Cf

0 11 0 11
1 9 9 20
2 5 10 25
3 3 9 28
4 1 4 29
5 1 5 30
Σf = 30 ΣfX = 37

∑ fX 37
μ= = = 1.23̇ ≈ 1.2 mistakes
∑f 30

Position(median) = 0.5(30 + 1) = 15.5

X15 + 𝑋16 1 + 1
Median = X15.5 = = = 1 ≈ 1.0 mistakes
2 2

Mode is 0 mistakes.

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Lesson 12 – Calculation of Averages for Grouped Data
1.
Age (years) Frequency X <cf fX
30 – 35 8 32.5 8 260.0
35 – 40 21 37.5 29 787.5
40 – 45 24 42.5 53 1020.0
45 – 50 32 47.5 85 1520.0
50 – 55 40 52.5 125 2100.0
55 – 60 23 57.5 148 1322.5
60 – 65 8 62.5 156 500.0
Σf = 156 ΣfX = 7510

Mode = 52.5 years

∑ fX 7510
𝜇= = = 48.141 025 64 ≈ 48.1 years
∑f 156

1
Position(median) = ∑ 𝑓 = 0.5(156) = 78
2
1
∑ 𝑓 − 𝑐𝑓𝑖−1 78 − 53
Median = L + [2 ] C = 45 + [ ] 5 = 48.906 25 ≈ 48.9 years
𝑓𝑖 32

2.
Warranty Repair Jobs per Month Number of Months X <cf fX
95 – 105 4 100 4 400
105 – 115 14 110 18 1540
115 – 125 18 120 36 2160
125 – 135 15 130 51 1950
135 – 145 10 140 61 1400
145 – 155 7 150 68 1050
155 – 165 2 160 70 320
Σf = 70 ΣfX = 8820

Mode = 120.0 warranty repair jobs per month

∑ fX 8820
̅
X= = = 126 ≈ 126.0 warranty repair jobs per month
∑f 70

1
Position(median) = ∑ 𝑓 = 0.5(70) = 35
2
1
∑ 𝑓 − 𝑐𝑓𝑖−1 35 − 18
Median = L + [2 ] C = 115 + [ ] 10 = 124. 4̇
𝑓𝑖 18

≈ 124.4 warranty repair jobs per month

Page | 25
3.
Number of Acceptable Pieces Produced Number of Workers X <cf fX
15 – 30 3 22.5 3 67.5
30 – 45 14 37.5 17 525.0
45 – 60 18 52.5 35 945.0
60 – 75 26 67.5 61 1755
75 – 90 20 82.5 81 1650.0
90 – 105 12 97.5 93 1170.0
105 – 120 7 112.5 100 787.5
Σf = 100 ΣfX = 6900

Mode = 67.5 acceptable pieces produced

∑ fX 6900
̅
X= = = 69 ≈ 69.0 acceptable pieces produced
∑f 100

1
Position(median) = ∑ 𝑓 = 0.5(100) = 50
2
1
∑ 𝑓 − 𝑐𝑓𝑖−1 50 − 35
Median = L + [2 ] C = 60 + [ ] 15 = 68.653 846 15
𝑓𝑖 26
≈ 68.7 acceptable pieces produced

4.
Account Balance ($) Frequency X <cf
0 – 100 10 50 10
100 – 200 15 150 25
200 – 300 40 250 65
300 – 400 22 350 87
400 – 500 10 450 97
500 and above 3 100
Σf = 100

a) Mode = $250.00
1
Position(median) = ∑ 𝑓 = 0.5(100) = 50
2
1
∑ 𝑓 − 𝑐𝑓𝑖−1 50 − 25
Median = L + [2 ] C = 200 + [ ] 100 = 262.5 ≈ $262.50
𝑓𝑖 40

b) The last class is open-ended, therefore there is no midpoint available to calculate the
mean.

Page | 26
Lesson 13 – Other Measures of Central Tendency: The Weighted Mean
1.

Mark (%), X Number in Class, w wX

72 22 1584
86 36 3096
Σw = 58 ΣwX = 4680

∑ wX 4680
̅w =
X = = 80.689 655 17 ≈ 80.7%
∑w 58

̅ = 65(280) = $18,200
2. ∑ X = nX

3.

Salary ($), X Number of Graduates, w wX

48,700 38 1,850,600
45,300 45 2,038,500
62,600 27 1,690,200
Σw = 110 ΣwX = 5,579,300

∑ wX 5,579,300
̅w =
X = = 50,720.909 ≈ $50,720
∑w 110

4.

Province Size of Civilian Labor Force Unemployment Rate (%), X wX

(thousands), w
NL 255.9 15.3 3 915.27
PE 78.9 11.8 931.02
NS 499.6 9.5 4 746.20
NB 400.1 8.1 3 240.81
QC 4 196.7 8.8 36 930.96
Σw = 5431.2 ΣwX = 49 764.26

∑ wX 49 764.26
̅
Xw = = = 9.162 663 868 ≈ 9.16%
∑w 5431.2

Page | 27
Lesson 14 – Other Measures of Central Tendency: The Geometric
Mean
7
1. G. M. = [ √(1 + 0.15)(1 + 0.02)(1 + 0.13)(1 + 0.10)(1 + 0.06)(1 + 0.07)(1 + 0.01) −
1] 100 = 7.603 336 228 ≈ 7.60%/annum

4
2. G. M. = [ √(1 + 0.20)(1 − 0.08)(1 + 0.12)(1 − 0.05) − 1] 100 = 4.106 459 091 ≈
4.11%/annum

6 18,000
3. G. M. = [√13,500 − 1] 100 = 4.911 506 342 ≈ 4.91%/annum

8 12,500
4. G. M. = [√ − 1] 100 = 10.074 127 68 ≈ 10.07%/annum
5800

5. a) No. The data does not represent a time series.

∑X 378
b) The arithmetic mean, μ = N
= 5
= 75.6 ≈ 75.6%

4 60,000,000
6. G. M. = [√45,000,000 − 1] 100 = 7.456 993 182 ≈ 7.46%/quarter

Page | 28
Unit 4 – Measures of Dispersion
Lesson 15 – Measuring Dispersion in a Distribution
1. There is more variation in the ages of workers in the iron processing mills than the
automobile industry.

2.
X ($1000) X–µ |X – µ| (X – µ)2
15 -10 10 100
21 -4 4 16
28 3 3 9
36 11 11 121
ΣX = 100 Σ(X – µ) = 0 Σ|X – µ| = 28 Σ(X – µ)2 = 246

∑ X 100
μ= = = 25 ≈ 25.0 ($1000)
N 4

a) R = 36 − 15 = 21 ≈ 21.0 ($1000)
28
b) M. A. D. = = 7 ≈ 7.0 ($1000)
4
246
c) σ2 = 4
= 61.5 ≈ 61.5 ($1000)2
d) σ = √61.5 = 7.842 193 571 ≈ 7.8 ($1000)

3. Same as #2, part c) and d).

4. The arithmetic mean of the second firm’s accounts is a better representative of its accounts
receivables as it has the smaller mean absolute deviation.

Page | 29
Lesson 16 – The Computing Formula for the Standard Deviation
1.
X (g) X–µ (X – µ)2 X2
34.5 −11.483̅ 131.866 944 4 1190.25
67.8 21.816 ̅ 475.966 944 4 4596.84
23.9 −22.083̅ 487.673 611 1 571.21
45.4 −0.583̅ 0.340 277 777 2061.16
54.6 8.616̅ 74.246 944 44 2981.16
49.7 3.716̅ 13.813 611 11 2470.09
ΣX = 275.9 Σ(X – µ) = 0 Σ(X – µ)2 = 1183.908 333 ΣX2 = 13,870.71

∑ X 275.9
μ= = = 45.983̅ ≈ 45.98 g
N 6

∑(X−μ)2 1183.908 333

a) σ = √ =√ = 14.046 994 54 ≈ 14.05 g
N 6

∑ X2 ∑X 2 13,870.71 275.9 2
b) σ = √ −[ ] =√ −[ ] = 14.046 994 54 ≈ 14.05 g
N N 6 6
c) The computing formula will be most convenient.
∑ X = 275.9 + 42.0 = 317.9

∑ X 2 = 13,870.71 + 42.02 = 15,634.71

2
∑ X2 ∑X 15,634.71 317.9 2
σ=√ −[ ] =√ −[ ] = 13.079 474 49 ≈ 13.08 g
N N 7 7

2.
X (%) f fX fX2
76 5 380 28,880
82 12 984 80,688
91 3 273 24,843
Σf = 20 ΣfX = 1637 ΣfX2 = 134,411

∑ fX2 ∑ fX 2 134,411 1637 2

a) σ = √ ∑f
−[∑ ] =√ −[ ] = 4.596 466 034 ≈ 4.6%
f 20 20
b) σ2 = 4.596 466 0342 = 21.127 5 ≈ 21.2 (%)2

Page | 30
3.
Age (years) Frequency X fX fX2
30 – 35 8 32.5 260.0 8450.00
35 – 40 21 37.5 1087.5 29 531.25
40 – 45 24 42.5 1020.0 43 350.00
45 – 50 32 47.5 1520.0 72 200.00
50 – 55 40 52.5 2100.0 110 250.00
55 – 60 23 57.5 1322.5 76 043.75
60 – 65 8 62.5 500.0 31 250.00
Σf = 156 ΣfX = 7510 ∑fX2 = 371 075

2
∑ fX 2 ∑ fX 371 075 7510 2
σ= √ −[ ] = √ −[ ] = 7.818 410 815 ≈ 7.8 years
∑f ∑f 156 156
σ2 = 7.818 410 8152 = 61.127 547 67 ≈ 61.1 (years)2

Page | 31
Lesson 17 – The Sample Standard Deviation
1.
a) Day 2

Completion Time (min.) 𝑿 − 𝑿̅ (𝑿 − 𝑿̅ )𝟐

34 0 0
37 3 9
44 10 100
28 -6 36
27 -7 49
ΣX = 170 ̅ )𝟐 = 𝟏𝟗𝟒
∑(𝑿 − 𝑿

∑ 𝑋 170
𝑋̅ = = = 34 ≈ 34.0 𝑚𝑖𝑛𝑢𝑡𝑒𝑠
𝑛 5
∑(𝑋 − 𝑋̅)2 194
𝑠2 = = = 48.5 ≈ 48.5 (𝑚𝑖𝑛𝑢𝑡𝑒𝑠)2
𝑛−1 4

𝑠 = √𝑠 2 = √48.5 = 6.964 194 139 ≈ 7.0 𝑚𝑖𝑛𝑢𝑡𝑒𝑠

b) Day 3

Completion Time (min.) X2

38 1444
30 900
35 1225
33 1089
42 1764
32 1024
ΣX = 210 ΣX2 = 7446

∑ 𝑋 210
𝑋̅ = = = 35 ≈ 35.0 𝑚𝑖𝑛𝑢𝑡𝑒𝑠
𝑛 6

(∑ 𝑋)2 2102
∑ 𝑋2 − 7446 −
𝑠2 = 𝑛 = 6 = 19.2 ≈ 19.2 (𝑚𝑖𝑛𝑢𝑡𝑒𝑠)2
𝑛−1 5

𝑠 = √𝑠 2 = √19.2 = 4.381 780 46 ≈ 4.4 𝑚𝑖𝑛𝑢𝑡𝑒𝑠

Page | 32
 c)
Day 1 Day 4 Day 5
Mean (min.) 33.0 37.0 38.0
Standard Deviation (min.) 12.8 1.6 0.8
Variance (min.)2 164.7 2.7 0.7

d) Day 1 has the minimum completion time with a mean of 33.0 minutes.
e) Day 5 has the least variability in completion times with a standard deviation of 0.8
minutes (or variance of 0.7 minutes2).

2.
X (%) f fX fX2
42 3 126 5,292
58 6 348 20,184
75 12 900 67,500
88 9 792 69,696
2
Σf = 30 ΣfX = 2166 ΣfX = 162,672

(∑ fX)2 21662
∑ fX2 − 162,672−
a) s = √ ∑ f−1
∑f
=√ 29
30
= 14.723 661 46 ≈ 14.7%

b) Same as a).

3. No. As the sample size increases, the difference between n and n – 1 becomes
proportionally less significant. For example, when n = 300, we will divide by 300 for the
population and 299 for the sample – a very small difference. If n = 5, we will divide by 5 for
the population versus 4 for the sample – a remarkable difference.

4. The sample standard deviation will be larger because it is divided by n – 1 versus n.

Page | 33
5.
Warranty Repair Jobs per Month Number of X fX fX2
Months
95 – 105 4 100 400 40 000
105 – 115 14 110 1540 169 400
115 – 125 18 120 2160 259 200
125 – 135 15 130 1950 253 500
135 – 145 10 140 1400 196 000
145 – 155 7 150 1050 157 500
155 – 165 2 160 320 51 200
2
Σf = 70 ΣfX = 8820 ∑fX = 1 126 800

(∑ fX)2 88202
∑ fX 2 − 1 126 800 −
√ ∑f √ 70 = 14.978 245 09
s= =
∑f − 1 69
≈ 15.0 warranty jobs per month
𝑠 = 14.978 245 092 = 224.347 826 1 ≈ 224.3 (warranty jobs per month)2
2

6.
Number of Acceptable Pieces Number of X fX fX2
Produced Workers
15 – 30 3 22.5 67.5 1 518.75
30 – 45 14 37.5 525.0 19 687.50
45 – 60 18 52.5 945.0 49 612.50
60 – 75 26 67.5 1755 118 462.50
75 – 90 20 82.5 1650.0 136 125.00
90 – 105 12 97.5 1170.0 114 075.00
105 – 120 7 112.5 787.5 88 593.75
Σf = 100 ΣfX = 6900 ∑fX2 = 528 075

(∑ fX)2 69002
∑ fX 2 −
√ ∑f √528 075 − 100
s= = = 22.912 878 47
∑f − 1 99
≈ 22.9 acceptable pieces produced
𝑠 = 22.912 878 472 = 525 ≈ 525.0 (acceptable pieces produced)2
2

Page | 34
Lesson 18 – Application of the Mean and Standard Deviation
1. a)

Income in a Community

33.5 46.5 59.5 72.5 85.5 98.5 111.5

X ($1000)

X−μ 85−72.5
b) Z = σ
= 13
= 0.96

X−μ 42−72.5
c) Z = σ
= 13
= −2.35

X−μ 125−72.5
d) Z = σ
= 13
= 4.04

It is possible, but it is not very common since it lays 4.04 standard deviations above the
mean.

e) Approximately 95% of all wage earners in the community earn between $46,500 and
$98,500 since the Z scores of these two wages are -2 and +2 respectively.

f) Approximately 97.5% of all wage earners in the community earn more than $46,500.

g) The minimum wage likely to be observed in the community is $33,500.

2. The data must be rank ordered to calculate the median.

39.95 41.99 42.00 44.50 45.55 47.50 48.99 53.00

a) ̅
X = 45.435 ≈ $45.435; s = 4.289 045 848 ≈ $4.289
X 4 + X 5 44.50 + 45.55
Position(median) = 0.5(8 + 1) = 4.5; median = = = 45.025
2 2
≈ $45.025
s 4.289 045 848
b) C. V. = X̅ ∙ 100 = 45.435
∙ 100 = 9.44%

Page | 35
 ̅ −median)
3(X 3(45.435−45.025)
c) Sk = s
= 4.289 045 848
= 0.29
d) The coefficient of variation indicates that there is a small amount of variation in the
price of an oil change in the community. The coefficient of skewness indicates that the
shape of the distribution of the price of an oil change in the community is approximately
symmetrical.

3.
X (%) Frequency <Cf
52 5 5
64 12 17
72 25 42
83 14 46
96 7 63
Σf = 63

a) μ = 74 ≈ 74.0%; σ = 11.437 893 02 ≈ 11.4%

Position(median) = 0.5(63 + 1) = 32; median = X 32 = 72 ≈ 72.0%
σ 11.437 893 02
b) C. V. = μ ∙ 100 = 74
∙ 100 = 15.46%
̅ −median)
3(X 3(74−72)
c) Sk = s
= 11.437 893 02 = 0.52
d) Since there is a slight positive skew to the data, less than half the scores fall above the
mean of 74.0%. If we count the observations, 42 observations out of 63 are 72% or less,
and 21 observations are 83% or 96%.

4.
Value ($) Frequency <Cf
0.00 – 500.00 10 10
500.00 – 1000.00 20 30
1000.00 – 1500.00 9 39
1500.00 – 2000.00 6 45
2000.00 – 2500.00 4 49
2500.00 – 3000.00 2 51
Σf = 51

a) μ = 1053.921 569 ≈ $1,053.922; σ = 672.123 ≈ $672.123

Position(median) = 0.5(51) = 25.5
25.5 − 10
median = 500.00 + 500.00 = 887.5 ≈ $887.500
20
σ 672.123
b) C. V. = ∙ 100 = ∙ 100 = 63.77%
μ 1053.922
3(μ−median) 3(1053.921 569−887.5)
c) Sk = σ
= 672.123
= 0.74

Page | 36
Unit 3 – 4 Review
1. a) All people in Saskatchewan who take headache medication.
b) 500 people from Saskatchewan who take headache medication.
c) The rating of effectiveness of the new medication.
d) Qualitative data.
e) Ordinal data.
f) This is an example of inferential statistics.

2. a) The population is all of the workers in the small factory.

b) The data represents the population.
c) The variable is the weekly salary of a worker in the small factory.
d) The variable is quantitative.
e) The variable is discrete.
f) The data is presented as raw data.

Weekly Salary ($) X–µ | X – µ| (X – µ)2

600 -100 100 10,000
750 50 50 2,500
700 0 0 0
750 50 50 2,500
800 100 100 10,000
700 0 0 0
600 -100 100 10,000
700 0 0 0
ΣX = 5600 Σ(X – µ) = 0 Σ| X – µ| = 400 Σ(X – µ)2 = 35,000

∑X 5600
g) μ = N
= 8
= 700 ≈ $700.00/week
∑|X−μ| 400
h) M. A. D. = N
= 8
= 50 ≈ $50.00/week
∑(X−μ)2 35000
i) σ2 = = = 4375 ≈ 4,375.00 ($)2
N 8
σ= 2
√σ = √4375 = 66.14378278 ≈ $66.14/week

3. a) The population is all of the readings of the concentration of sulfur dioxide in the city.
b) The data represents a sample.
c) The variable is the concentration of sulfur dioxide in the city.
d) The variable is quantitative.
e) The variable is continuous.
f) The data presented is raw data.

Page | 37
 Concentration of Sulfur Dioxide (ppm) X2
0.14 0.019 6
0.15 0.022 5
0.15 0.022 5
0.17 0.028 9
0.17 0.028 9
0.18 0.032 4
0.18 0.032 4
0.18 0.032 4
0.19 0.036 1
0.20 0.040 0
0.22 0.048 4
0.22 0.048 4
0.23 0.052 9
0.23 0.052 9
0.24 0.057 6
0.26 0.067 6
0.27 0.072 9
0.32 0.102 4
ΣX = 3.70 ΣX2 = 0.798 8

∑X 3.70
g) x̅ = n
= 18
= 0.205̅ ≈ 0.206 ppm
(∑ X)2 3.702
∑ X2 − 0.7988−
2
h) s = n−1
n
= 17
18
= 0.002249673 ≈ 0.002 (ppm)2

s = √s 2 = √0.002249673 = 0.04743072 ≈ 0.047 ppm

s 0.04743072
i) C. V. = X̅ 100 = ̅
0.205
100 = 23.07440434 ≈ 23.1%

There is a moderate amount of dispersion in the data.

1
j) Median position = 2 (n + 1) = 0.5(18 + 1) = 9.5
1 1
Median value = x9.5 = (x9 + x10 ) = (0.19 + 0.20) = 0.195 ≈ 0.195 ppm
2 2
̅ −median)
3(X ̅−0.195)
3(0.205
k) Sk = s
= 0.04743072
= 0.667640437 ≈ 0.67

There is a slight positive skew in the distribution.

Page | 38
4.
Number of Instructions f fX fX2 <Cf
18 4 72 1296 4
19 12 228 4332 16
20 15 300 6000 31
21 20 420 8820 51
22 13 286 6292 64
23 8 184 4232 72
24 6 144 3456 78
25 2 50 1250 80
2
Σf = 80 ΣfX = 1684 ΣfX = 35,678

a) The population is the number of instructions the computer system can perform in 1
nanosecond.
b) The data represents a sample.
c) The variable is the number of instructions a computer system can perform in 1 nanosecond.
d) The variable is quantitative.
e) The variable is discrete.
f) The data presented as an ungrouped frequency distribution.
g) Mode = 21 instructions
1
h) Median position = 2 (∑ f + 1) = 0.5(80 + 1) = 40.5
1 1
Median value = X 40.5 = (X 40 + X 41 ) = (21 + 21) = 21 ≈ 21.0 instructions
2 2
∑ fX 1684
i) ̅
X= ∑ = = 21.05 ≈ 21.1 instructions
f 80
(∑ fX)2 16842
∑ fX2 − 35678−
2 ∑f
j) s = ∑ f−1
= 79
80
= 2.908860759 ≈ 2.9 (instructions)2

s = √s 2 = √2.908860759 = 1.705538261 ≈ 1.7 instructions

s 1.705538261
k) C. V. = X̅ 100 = 21.05
100 = 8.102319529 ≈ 8.10%
There is a small amount of dispersion in the data.
̅ −median)
3(X 3(21.05−21.0)
l) Sk = s
= 1.705538261
= 0.087948774 ≈ 0.09

The distribution is approximately symmetrical.

Page | 39
5.
Stopping Distance (m) Midpoint fX fX2 <Cf
45 – 50 47.5 95.0 4,512.50 2
50 – 55 52.5 787.5 41,343.75 17
55 – 60 57.5 1840.0 105,800.00 49
60 – 65 62.5 2250.0 140,625.00 85
65 – 70 67.5 1620.0 109,350.00 109
70 – 75 72.5 725.0 52,562.50 119
75 – 80 77.5 77.5 6,006.25 120
2
ΣfX = 7395.0 ΣfX = 460,200

a) The population is the braking distance required to stop a car from 110 km/h.
b) The data represents a sample.
c) The variable is the braking distance required to stop a car from 110 km/h.
d) The variable is quantitative.
e) The variable is continuous.
f) The data is presented as a grouped frequency distribution.
g) Mode = 62.5 m
1
h) Median position = 2 ∑ f = 0.5(120) = 60
60 − 49
Median value = 60 + 5 = 61.527̅ ≈ 61.5 m
36
∑ fX 7395
i) x̅ = ∑f
= 120
= 61.625 ≈ 61.6 m
(∑ fX)2 73952
∑ fX2 − 460200−
2 ∑f
j) s = ∑ f−1
= 119
120
= 37.67331933 ≈ 37.7 m2

s = √s 2 = √37.67331933 = 6.137859507 ≈ 6.1 m

s 6.137859507
k) C. V. = X̅ 100 = 61.625
100 = 9.960015427 ≈ 9.96%

There is a small amount of dispersion in the data.

̅ −median)
3(X ̅)
3(61.625−61.527
l) Sk = s
= 6.137859507
= 0.047519279 ≈ 0.05
The distribution is approximately symmetrical.

Page | 40
6.

Assets ($Billions) X – µ (X – µ)2 X2

673 -86.5 7 482.25 452 929
674 -85.5 7 310.25 454 276
715 -44.5 1 980.25 511 225
721 -38.5 1 482.25 519 841
873 113.5 12 882.25 762 129
901 141.5 20 022.25 811 801
ΣX = 4557 Σ(X – µ)2 = 51 159.5 ΣX2 = 3 512 201

∑𝑋 4557
a) 𝜇 = 𝑁
= 6
= 759.5 ≈ 759.5 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)
b) 𝑀𝑒𝑑𝑖𝑎𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.5(𝑛 + 1) = 0.5(6 + 1) = 3.5
𝑋3 + 𝑋4 715 + 721
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝑋3.5 = = = 718 ≈ 718.0 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)
2 2
c) There is no mode.
(𝑋−𝜇)2 51 159.5
d) 𝜎 = √ =√ = 92.339 500 4 ≈ 92.3 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)
𝑁 6

2
∑ 𝑋2 ∑𝑋 3 512 201 4557 2
𝜎= √ −[ ] = √ −[ ] = 92.339 500 4 ≈ 92.3 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)
𝑁 𝑁 6 6
e) 𝜎 2 = (92.339 500 4)2 = 8 526.583 33 ≈ 8 526.6 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)2
f) Answers do verify.
𝜎 92.339 500 4
g) 𝐶. 𝑉. = 𝜇 ∙ 100 = 759.5
∙ 100 = 12.157 932 9 ≈ 12.2%
There is a moderate spread in the data.
3(𝜇−𝑀𝑒𝑑𝑖𝑎𝑛) 3(759.5−718)
h) 𝑆𝑘 = 𝜎
= 92.339 500 4
= 1.348 285 398 ≈ 1.35
The data is positively skewed.
i) 𝑄3 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.75(𝑛 + 1) = 0.75(6 + 1) = 5.25
𝑄3 = 𝑋5.25 = 𝑋5 + 0.25(𝑋6 − 𝑋5 ) = 873 + 0.25(901 − 873) = 880
≈ 880.0 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)
j) 𝐷8 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.8(𝑛 + 1) = 0.8(6 + 1) = 5.6
𝐷8 = 𝑋5.6 = 𝑋5 + 0.6(𝑋6 − 𝑋5 ) = 873 + 0.6(901 − 873) = 889.8 ≈ 889.8 ($𝑏𝑖𝑙𝑙𝑖𝑜𝑛)

Page | 41
7.

Age (years) Number of Students fX fX2 <cf

9 4 36 324 4
10 14 140 1400 18
11 10 110 1210 28
12 1 12 144 29
13 1 13 169 30
Σf = 30 ΣfX = 311 ΣfX2 = 3247

∑𝑋 311
a) 𝜇 = 𝑁
= 30
= 10.36̇ ≈ 10.4 𝑦𝑒𝑎𝑟𝑠
b) Mode = 10 years
c) 𝑀𝑒𝑑𝑖𝑎𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.5(∑ 𝑓 + 1) = 0.5(30 + 1) = 15.5
𝑋15 + 𝑋16 10 + 10
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝑋15.5 = = = 10 ≈ 10.0 𝑦𝑒𝑎𝑟𝑠
2 2
∑ 𝑓𝑋 2 ∑ 𝑓𝑋 2 3247 311 2
d) 𝜎 = √ ∑𝑓
−[∑ ] =√ −[ ] = 0.874 960 316 ≈ 0.9 𝑦𝑒𝑎𝑟𝑠
𝑓 30 30
e) 𝜎 2 = (0.874 960 316)2 = 0.765̇ ≈ 0.8 (𝑦𝑒𝑎𝑟𝑠)2
f) Answers do verify.
𝜎 0.874 960 316
g) 𝐶. 𝑉. = 𝜇 ∙ 100 = 10.36̇
∙ 100 = 8.440 131 671 ≈ 8.4%
There is a slight spread in the data.
3(𝜇−𝑀𝑒𝑑𝑖𝑎𝑛) 3(10.36̇−10)
h) 𝑆𝑘 = = = 1.257 199 874 ≈ 1.26
𝜎 0.874 960 316
The data is positively skewed.
i) 𝑃70 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.7(∑ 𝑓 + 1) = 0.7(30 + 1) = 21.7
𝑃70 = 𝑋21.7 = 𝑋21 + 0.7(𝑋22 − 𝑋21 ) = 11 + 0.7(11 − 11) = 11 ≈ 11.0 𝑦𝑒𝑎𝑟𝑠
j) 𝑄1 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.25(∑ 𝑓 + 1) = 0.25(30 + 1) = 7.75
𝑄1 = 𝑋7.75 = 𝑋7 + 0.75(𝑋8 − 𝑋7 ) = 10 + 0.75(10 − 10) = 10 ≈ 10.0 𝑦𝑒𝑎𝑟𝑠

Page | 42
 8.

Average (%) Number of Students X fX fX2 <cf

40 – 50 3 45 135 6 075 3
50 – 60 5 55 275 15 125 8
60 – 70 20 65 1300 84 500 28
70 – 80 35 75 2625 196 875 63
80 – 90 25 85 2125 180 625 88
90 – 100 12 95 1140 108 300 100
Σf = 100 ΣfX = 7600 ΣfX2 = 591 500

∑ 𝑓𝑋 7600
a) 𝑋̅ = ∑ = = 76 ≈ 76.0%
𝑓 100
b) Mode = 75%
c) 𝑀𝑒𝑑𝑖𝑎𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.5 ∑ 𝑓 = 0.5(100) = 50
0.5 ∑ 𝑓 − 𝐶𝑓𝑖−1 50 − 28
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝐿 + [ ] 𝐶 = 70 + [ ] 10 = 76.285 714 ≈ 76.3%
𝑓𝑖 35
(∑ 𝑓𝑋)2 76002
∑ 𝑓𝑋 2 − 591 500−
d) 𝑠 = √ =√
∑𝑓 100
∑ 𝑓−1
= 11.849 221 09 ≈ 11.8%
99

e) 𝑠 2 = (11.849 221 09)2 = 140. 40̇ ≈ 140.4 (%)2

f) Answers do verify.
𝑠 11.849 221 09
g) 𝐶. 𝑉. = 𝑋̅ ∙ 100 = 76
∙ 100 = 15.591 080 38 ≈ 15.6%
There is a moderate spread in the data.
3(𝑋̅−𝑀𝑒𝑑𝑖𝑎𝑛) 3(76−76.285 714)
h) 𝑆𝑘 = 𝑠
= 11.849 221 09
= −0.072 337 486 ≈ −0.07
The data is approximately symmetrical.
i) 𝑃80 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.8 ∑ 𝑓 = 0.8(100) = 80
0.8 ∑ 𝑓 − 𝐶𝑓𝑖−1 80 − 63
𝑃80 = 𝐿 + [ ] 𝐶 = 80 + [ ] 10 = 86.8 ≈ 86.8%
𝑓𝑖 25
j) 𝐷6 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.6 ∑ 𝑓 = 0.6(100) = 60
0.6 ∑ 𝑓−𝐶𝑓𝑖−1 60−28
𝐷6 = 𝐿 + [ 𝑓𝑖
]𝐶 = 70 + [ 35
] 10 = 79.142 857 ≈79.1%

9.
County Per Cent Unemployed Size of Workforce wX
Wood 4.5 15,300 68,850
Ottawa 3.0 10,400 31,200
Lucas 10.2 150,600 1,536,120
Σw = 176,300 ΣwX = 1,636,170

∑ 𝑤𝑋 1 636 170
𝑋̅𝑤 = = = 9.280601248 ≈ 9.28%
∑𝑤 176 300

Page | 43
 4
10. G. M. = [ √(1 − 0.20)(1 + 0.10)(1 + 0.02)(1 + 0.40) − 1] 100 = 5.877 266 397 ≈
5.88%/quarter

11.
Amount ($) Interest Rate (Annual %) wX (interest earned)
5,000 7 350
12,000 12 1440
14,000 15 2100
Σw = 31,000 ΣwX = 3890

∑ 𝑤𝑋 3,890
𝑋̅𝑤 = = = 0.125 483 871 ≈ 12.55%/annum
∑𝑤 31,0000

12.
Expense Proportion of Student’s Budget Expected Per Cent wX
(%) Increase
Housing 30 2 0.60
Food 25 8 2.00
Tuition 10 10 1.00
Books 5 15 0.75
Transportation 3 8 0.24
Recreation 27 10 2.70
Σw = 100 ΣwX =
7.29

∑ 𝑤𝑋 7.29
𝑋̅𝑤 = = = 0.0729 ≈ 7.2%/annum
∑𝑤 100

4 1800
13. G. M. = [√1200 − 1] 100 = 10.668 191 97 ≈ 10.67%/annum

4
14. G. M. = [ √(1 + 0.05)(1 + 0.08)(1 + 0.09)(1 − 0.02) − 1] 100 = 4.909 884 054 ≈ 4.91%

Page | 44
15.

Grade (%), X Credit Hours, w wX

68 2 136
80 5 400
72 3 216
Σw = 10 ΣwX = 752

∑ wX 752
̅w =
X = = 75.2 ≈ 75.2%
∑w 10

16.

Values of Orders at a Fast Food Restaurant

4 8 12 16 20 24 28
Value ($)

a) R = 28 − 4 = $24.00
b) $12.00 and $20.00
c) $8.00 and $24.00
d) Below $8.00
e) 16%
f) $16.00 and $16.00
7.50−16.00
g) Z = = −2.13
4.00
25.00−16.00
h) Z = 4.00
= 2.25

17. a) Median. The distribution is skewed negatively. The median is less affected by skews than
the mean.
b) -1.0 (something that indicates a negative skew).

Page | 45
18. A partially labeled curve follows. See your instructor for a fully labeled curve.

Annual Income of High School Dropouts

15 18 21 24 27 30 33
Income ($1000)

Page | 46
Unit 5 – Basic Probability
Lesson 19 – Introduction to Probability
1.
Outcome Person 1 Person 2
1 Favor Favor
2 Favor Against
3 Against Favor
4 Against Against

6
2. a) 𝑃(𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡) = 34
b) Empirical probability.

3. a) Empirical probability.
b) Classical probability.
c) Classical probability.
d) Subjective.

4. a) The survey of 40 executives about environmental issues.

b) The number of executives who respond “yes” to a particular question, for example.
10
c) 𝑃(𝑌𝑒𝑠 𝑟𝑒𝑠𝑝𝑜𝑛𝑠𝑒) =
40
d) Empirical probability.

5. a) Any four-digit code from 0000 to 9999. For example, 1234, 2345, 3456 and 4567.
1
b) 𝑃(𝑠𝑎𝑚𝑒 𝑃𝐼𝑁) = 10 000

Page | 47
Lesson 20 – Counting Outcomes
1. 3 × 2 × 2 = 12 arrangements

Attached
Model Floor Plan
Garage

Yes
A
No
1
Yes
B
No
Yes
A
No
Start 2
Yes
B
No
Yes
A
No
3
Yes
B
No

2. 15 × 114 = 1,710 ways

6!
3. 6C2 = = 15 pairs
2!(6−2)!
3!
4. 3! = 6 ways or 3P3 = (3−3)! = 6 ways
5.

Gas Station Operators Fast Food Outlets Total

For Bylaw 10 20 30
Against Bylaw 50 20 70
Total 60 40 100

10!
6. 10C4 = 4!(10−4)! = 210 groups
7. 5! = 120 routes
15!
8. 15P10 = (15−10)! = 1.089 728 64 × 1010
900! 900×899
9. 900C898 = 898!(900−898)! = 2×1
= 450 × 899 = 404,550

Page | 48
Lesson 21 – Events and Venn Diagrams
1. a) n(Sixes) = 4
b) n(-Sixes) = 48

Spade Six

c) n(Spades and Sixes) = 1

d) n(Spades or Sixes) = n(Spades) + n(Sixes) – n(Spades and Sixes) = 13 + 4 – 1 = 16

2. n(U) = 100; n(London) = 60; n(Rome) = 30; n(London and Rome) = 10

London Rome

a) n(London or Rome) = n(London) + n(Rome) – n(London and Rome) = 60 + 30 – 10 = 80

tourists
b) n(-London and –Rome) = n(U) – n(London or Rome) = 100 – 80 = 20 tourists
c) n(London and –Rome) = n(London) – n(London and Rome) = 60 – 10 = 50 tourists
n(London and Rome) 10 1
d) P(London|Rome) = n(Rome)
= 30 = 3

Page | 49
Lesson 22 – Rules Governing Probability Calculations
1. E = event that a transaction is in error.
3
a) 𝑃(𝐸) = = 0.075
40
b) 𝑃(−𝐸) = 1 − 𝑃(𝐸) = 1 − 0.075 = 0.925

2. S = event that a student takes Statistics. E = event that a student takes Economics.
a) P(S) = 0.6; P(E) = 0.5; P(S and E) = 0.1

S E

b) P(S or E) = P(S) + P(E) − P(S and E) = 0.6 + 0.5 − 0.1 = 1

c) P(−S and − E) = 1 − P(S or E) = 1 − 1 = 0
d) P(S and − E) = P(S) − P(S and E) = 0.6 − 0.1 = 0.5

3. a) These are mutually exclusive events.

2 2 4 1
P(Red 5 or Black 6) = P(Red 5) + P(Black 6) = + = =
52 52 52 13
b) These are intersecting events. P(Jack or Heart) = P(Jack) + P(Heart) −
4 13 1 16 4
P(Jack and Heart) = 52 + 52 − 52 = 52 = 13

4. a) These are intersecting events.

P(FB or EO) = P(FB) + P(EO) − P(FB and EO) = 0.10 + 0.25 − 0.05 = 0.30
b) This is the complement of P(FB or EO).
P(−FB and − EO) = 1 − P(FB or EO) = 1 − 0.30 = 0.70

5. a) 𝑃(𝑃ℎ 𝑎𝑛𝑑 𝐹𝑙) = 0.2

b) 𝑃(𝑃ℎ 𝑎𝑛𝑑 𝐷𝑒) = 0.3
c) No. In the answer to part b) there is overlap between the two events.
d) It is an intersecting event.
e) 𝑃(−𝑃ℎ 𝑜𝑟 − 𝐹𝑙 𝑜𝑟 − 𝐷𝑒) = 1 − 𝑃(𝑃ℎ 𝑎𝑛𝑑 𝐹𝑙 𝑎𝑛𝑑 𝐷𝑒) = 1 − 0.1 = 0.9

Page | 50
Lesson 23 – Conditional Probability and the Multiplication Rules
1. a) Independent
b) Dependent
c) Independent

2. Ci = event that a carton drawn at a stage. These are dependent events because there is
sampling without replacement.
6 5 1
P(C1 and C2 ) = P(C1 ) ∙ P(C2 |C1 ) = ∙ = = 0.05
25 24 20

3. Wi = event of a woman drawn at a stage.

a) The events are independent because there is sampling with replacement.
5 5 1
P(W1 and W2 ) = P(W1 ) ∙ P(W2 ) = ∙ = = 0.062 5
20 20 16
b) The events are dependent because there is sampling without replacement.
5 4 1
P(W1 and W2 ) = P(W1 ) ∙ P(𝑊2 |𝑊1 ) = ∙ = = 0.052 631 578 ≈ 0.052 6
20 19 19

4. A tree diagram or contingency table will help to organize the information. The latter is
shown.
Shift 1 (One) Shift 2 (Two) Total
Correct Bin (C) 1800 3250 5050
Wrong Bin (W) 200 250 450
Total 2000 3500 5500

1800 18
̅̅̅̅ ≈ 0.327 3
a) P(One and C) = 5500 = 55 = 0.327
250 1
̅̅̅̅ ≈ 0.045 5
b) P(Two and W) = 5500 = 22 = 0.045
n(W and One) 200 1
c) P(W|One) = n(One)
= 2000 = 10 ≈ 0.100 0
n(Two and C) 3250 65
d) P(Two|C) = n(C)
= 5050 = 101 = 0.643 564 356 ≈ 0.643 6

Page | 51
Lesson 24 – Combining the Rules of Probability
1. Ci = event of a carton with cracked eggs at a stage. The tree diagram follows the solutions.
a) This probability occurs on branches 4, 6 and 7. The carton with cracked eggs may be
6
chosen first, second or third. Each of them occurs with the same likelihood, that is, 25 ∙
19 18
∙ ,
24 23
therefore we can multiply this probability of branch 4 by three to get the answer.
Note that the probability statement would be quite lengthy so a statement will be used.
6 19 18
P(1 carton with cracked eggs) = 3 ( ∙ ∙ ) = 0.446 086 956 ≈ 0.446 1
25 24 23

b) This probability occurs on branches 4, 6, 7 and 8.

6 19 18 19 18 17
P(At most 1 carton with cracked eggs) = 3 ( ∙ ∙ )+( ∙ ∙ )
25 24 23 25 24 23
= 0.867 391 304 ≈ 0.867 4

Carton 1 Carton 2 Carton 3

C3
C1 and C2 and C3
C2 4
5
-C3
C1 and C2 and -C3
C1 19
6
C3
C1 and -C2 and C3
-C2 5
19
-C3
C1 and -C2 and -C3
18

C3
-C1 and C2 and C3
C2 5
6
-C3
-C1 and C2 and -C3
-C1 18
19
C3
-C1 and -C2 and C3
-C2 6
18
-C3
-C1 and -C2 and -C3
17
25 24 23

Page | 52
2.
Test Problem
0.50 S
0.60 P
0.50 -S

0.40
F

P(−S and Not Hired) Path 2 0.3 3

a) P(−S|Not Hired) = P(Not Hired)
= Path 2+Path 3 = 0.3+0.4 = 7
P(F and Not Hired) Path 3 0.4 4
b) P(F|Not Hired) = = = =
P(Not Hired) Path 2+Path 3 0.3+0.4 7

Page | 53
Lesson 25 – Bayes’ Rule for Revising Probabilities
A tree diagram or contingency table may be used to aid the solution to all of these problems. The
contingency table is shown for the problems.

1.

Purchases Cash or Cheque (Cash) Credit Card (CC) Debit Card (DC) Total
At most $50 (-M) 30(0.8) = 24 30(0.1) = 3 40(0.4) = 16 43
More than $50 (M) 30(0.2) = 6 30(0.9) = 27 40(0.6) = 24 57
Total 30 30 40 100

P(Cash and M) 6
P(Cash|M) = = = 0.105 263 157 ≈ 0.105 3
P(M) 57

2.
Door Open (O) Door Closed (-O) Total
Not Robbed (-S) 0.25(0.95) = 0.2375 0.75(0.99) = 0.7425 0.98
Robbed (S) 0.25(0.05) = 0.0125 0.75(0.01) = 0.0075 0.02
Total 0.25 0.75 1.00

P(O and S) 0.0125

P(O|S) = = = 0.625 ≈ 0.625 0
P(S) 0.02

3.
Regular Homework (H) Irregular Homework (-H) Total
Pass 0.55(0.8) = 0.44 0.45(0.3) = 0.135 0.575
Fail 0.55(0.2) = 0.11 0.45(0.7) = 0.315 0.425
Total 0.55 0.45 1.000

a) P(Pass) = 0.575
P(H and Pass) 0.44
b) P(H|Pass) = P(Pass)
= 0.575 = 0.765 217 391 ≈ 0.765 2

4.
Firm X Firm Y Total
Good 0.8(0.85) = 0.68 0.2(0.95) = 0.19 0.87
Poor 0.8(0.15) = 0.12 0.2(0.05) = 0.01 0.13
Total 0.8 0.2 1.00

P(Firm X and Poor) 0.12

a) P(Firm X|Poor) = P(Poor)
= 0.13 = 0.923 076 923 ≈ 0.923 1
P(Firm Y and Poor) 0.01
b) P(Firm Y|Poor) = P(Poor)
= 0.13 = 0.076 923 076 ≈ 0.076 9

Page | 54
5.

TICKET SELLER
Customer Betty John Jean Joe Total
Receives Change (C) 0.3(0.98) = 0.3(0.97) = 0.2(0.95) = 0.2(0.96) = 0.967
0.294 0.291 0.19 0.192
Doesn’t Receive 0.3(0.02) = 0.3(0.03) = 0.2(0.05) = 0.2(0.04) = 0.033
Change (-C) 0.006 0.009 0.01 0.008
Total 0.3 0.3 0.2 0.2 1.00

a) P(−C) = 0.033 ≈ 0.033 0

P(Joe and−C) 0.008
b) P(Joe|−C) = P(−C)
= 0.033 = 0. ̅24
̅̅̅ ≈ 0.242 4

Page | 55
Unit 5 Review

1. Subjective probability.

2. See the next page for the tree diagram.

Page | 56
Cones Flavor Nuts

With

Chocolate

Without

With

Waffle Vanilla

Without

With

Strawberry

Without

With

Chocolate

Without

With

Regular Vanilla

Without

With

Strawberry

Without

Page | 57
 20!
3. 20P7 = (20−7)! = 390 700 800 arrangements

20!
4. 20C12 = 12!(20−12)! = 125 970 ways

16!
5. 16C3 = 3!(16−3)! = 560 groups

6.
Draw 1 Draw 2 Draw 3
D3
This branch is not possible.
D2 0
4
1
5 -D3
2 defective.
D1 4
4
2
D3
6 2 defective.
-D2 1
4
4
-D3
5
1 defective.
3
4
D3
2 defective.
D2 1
4
2
6-Feb -D3
5
1 defective.
-D1 3
4
4
D3
6
1 defective.
-D2 2
4
3
-D3
5
0 defective.
2
4

The sample space is 7; there are 7 branches.

Page | 58
 2 4 3 4 2 3 4 3 2 3
𝑃(𝐸𝑥𝑎𝑐𝑡𝑙𝑦 1 𝑑𝑒𝑓𝑒𝑐𝑡𝑖𝑣𝑒) = ∙ ∙ + ∙ ∙ + ∙ ∙ =
6 5 4 6 5 4 6 5 4 5

20!
7. 20C6 = 6!(20−6)! = 38 760 groups

8.
LOAN ASSESSMENT
INDUSTRY Low Risk (L) Moderate to High Total
Risk (-L)
Agriculture (A) 6 22 28
Food Retailers (F) 15 17 32
Total 21 39 60

28
a) P(A) = 60 = 0.46̅ ≈ 0.466 7; This is the probability that the industry chosen will be
agricultural.
32
b) P(F) = = 0.53̅ ≈ 0.533 3; This is the probability that the industry chosen will be
60
food retailers.
6
c) P(A and L) = = 0.1 ≈ 0.100 0; This is the probability that the industry chosen will
60
be agricultural and low risk.
n(A and L) 6
d) P(A|L) = ̅̅̅̅̅̅̅̅̅̅̅
= 21 = 0. 285 714 ≈ 0.285 7; This is the probability that the
n(L)
industry chosen will be agricultural given that the industry is known to be low risk.
17
e) P(F and − L) = 60 = 0.283̅ ≈ 0.283 3; This the probability that the industry chosen is
food retailers and moderate to high risk.
n(A and L) 6
f) P(L|A) = = ̅̅̅̅̅̅̅̅̅̅̅
= 0. 214 285 ≈ 0.214 3; This is the probability that the
n(A) 28
industry chosen is low risk given that the industry is known to be agricultural.
n(A and−L) 22
g) P(A|−L) = n(−L)
= 39 = 0.564 102 564 ≈ 0.564 1; This is the probability that the
industry chosen is agricultural given that it is known the industry is moderate to high
risk.

26 4 2 28 7
9. P(Black or Six) = P(Black) + P(Six) − P(Black and Six) = 52 + 52 − 52 = 52 = 13

10. Fi = event that a face card is drawn at a stage. The events are independent because the
sampling is completed with replacement.
12 12 9
P(F1 and F2 ) = P(F1 ) ∙ P(F2 ) = ∙ = = 0.053 254 437 ≈ 0.053 3
52 52 169

Page | 59
11. Fi = event that a face card is drawn at a stage. The events are dependent because the
sampling is completed without replacement.
12 11 11
P(F1 and F2 ) = P(F1 ) ∙ P(F2 |F1 ) = ∙ = = 0.049 773 755 ≈ 0.049 8
52 51 221

12. Fi = event that a face card is drawn at a stage. We will assume that the sampling is
completed without replacement like typical card games.
12 11 10 11
P(F1 and F2 and F3 ) = P(F1 ) ∙ P(F2 |F1 ) ∙ P(F3 |(F1 and F2 )) = ∙ ∙ =
52 51 50 1105
= 0.009 954 751 ≈ 0.010 0

n(Face and Spade) 3

13. P(Face|Spade) = n(Spade)
= 13

14. GP = event that a merchant favors greater powers of arrest be given to police. C = event
that a merchant favors a curfew for persons under 16. P(GP) = 0.8; P(C) = 0.6; and P(GP and
C) = 0.5.

GC C

a) P(GP or C) = P(GP) + P(C) − P(GP and C) = 0.8 + 0.6 − 0.5 = 0.9 ≈ 0.900 0
b) P(−GP and − C) = 1 − P(GP or C) = 1 − 0.9 = 0.1 ≈ 0.100 0

Page | 60
15. Pi = event that an applicant passes a test at a stage. Fi = event that an applicant fails a test at
a stage.

TEST 1 TEST 2 RESULT

Pass 0.3
0.24 Hired
Pass 0.8
1

Fail 0.7
0.56 Not Hired
1

Fail 0.2
0.20 Not Hired

a) P(Hired) = P(P1 and P2 ) = P(P1 ) ∙ P(P2 |P1 ) = 0.8(0.3) = 0.24 ≈ 0.240 0

0.56
b) P(F2 |Not Hired) = P(F2 |[(P1 and F2 ) or (F1 )]) = 0.56+0.20 = 0.736 842 105 ≈
0.736 8

16.

Credit Rating
Loan Status Good (G) Not Good (-G) Total
Default (D) 0.2(0.45) = 0.09 0.2(0.55) = 0.11 0.2
Don’t Default (-D) 0.8(0.8) = 0.64 0.8(0.2) = 0.16 0.8
Total 0.73 0.27 1.00

P(D and G) 0.09

a) P(D|G) = = = 0.123 287 671 ≈ 0.123 3
P(G) 0.73
b) About 12% of the bad credit risks slip through the screening process.

17.

Accident
Seat Belt Fatal (F) Not Fatal (-F) Total
Worn (W) 0.6(0.08) = 0.048 0.6(0.92) = 0.552 0.6
Not Worn (-W) 0.4(0.2) = 0.080 0.4(0.8) = 0.320 0.4
Total 0.128 0.872 1.00

a) P(W and F) = 0.048 ≈ 0.048 0

b) P(−W and F) = 0.08 ≈ 0.080 0

Page | 61
18. Assume that the flights are independent. Li = event that a flight is late at a stage.

Flight 1 Flight 2 Flight 3 Number of Late Flights

L3
3
L2 0.2
0.2
-L3
2
L1 0.8
0.2
L3
2
-L2 0.2
0.8
-L3
1
0.8

L3
2
L2 0.2
0.2
-L3
1
-L1 0.8
0.8
L3
1
-L2 0.2
0.8
-L3
0
0.8

a) This is branch 1 on the tree.

P(L1 and L2 and L3 ) = 0.2(0.2)(0.2) = 0.008 ≈ 0.008 0
b) This is branches 4, 6 and 7 on the tree. Each path is equally likely, so we may find the
probability of one path and multiply by three.
P(1 late flight) = 3[0.2(0.8)(0.8)] = 0.384 ≈ 0.384 0

Page | 62
12.

SOURCE OF ERROR
System Status Disk Drive Computer Memory Operating System Total
(DD) (CM) (OS)
Failure (F) 0.6(0.5) = 0.30 0.7(0.3) = 0.21 0.4(0.2) = 0.08 0.59
No Failure (-F) 0.4(0.5) = 0.20 0.3(0.3) = 0.09 0.6(0.2) = 0.12 0.41
Total 0.5 0.3 0.2 1

P(DD and F) 0.30

P(DD|F) = = = 0.508 474 576 ≈ 0.5085
P(F) 0.59

Page | 63
Unit 6 – Probability Distributions for
Discrete Random Variables
Lesson 26 – An Introduction to Probability Distributions
1.

Shoes Purchased by Customers

0.6

0.5

0.4

P 0.3

0.2

0.1

0
0 1 2 3 4 5
Number of Pairs of Shoes Purchased

X P(X) X∙P(X) X2∙P(X)

0 0.17 0 0
1 0.56 0.56 0.56
2 0.20 0.40 0.80
3 0.05 0.15 0.45
4 0.02 0.08 0.32
ΣP(X) = 1.00 ΣX∙P(X) = 1.19 ΣX2∙P(X) = 2.13

a) The distribution has a positive skew.

b) μ = ∑ X ∙ P(X) = 1.19 ≈ 1.2 pairs of shoes
The next customer will most likely purchase 1 pair of shoes.
c) σ = √∑ X 2 ∙ P(X) − (∑ X ∙ P(X))2 = √2.13 − 1.192 = 0.844 926 032 ≈
0.8 pairs of shoes
d) nμ = 100(1.19) = 119 pairs of shoes
e) nσ = 100(0.844 926 032) = 84.492 603 2 ≈ 84 pairs of shoes

Page | 64
2.

Occupants in a Vehicle at a Drive Through Window

0.5
0.45
0.4
0.35
0.3
P 0.25
0.2
0.15
0.1
0.05
0
0 1 2 3 4 5 6 7
Number of Occupants

X P(X) X∙P(X) X2∙P(X)

1 0.05 0.05 0.05
2 0.45 0.90 1.80
3 0.02 0.06 0.18
4 0.30 1.20 4.80
5 0.01 0.05 0.25
6 0.17 1.02 6.12
2
ΣP(X) = 1.00 ΣX∙P(X) = 3.28 ΣX ∙P(X) = 13.20

a) It is a probability distribution because 0 ≤ P(X) ≤ 1 and ∑ P(X) = 1.

b) The distribution is trimodal.
c) μ = ∑ X ∙ P(X) = 3.28 ≈ 3.3 occupants
d) σ = √∑ X 2 ∙ P(X) − (∑ X ∙ P(X))2 = √13.2 − 3.282 = 1.562 561 999 ≈ 1.6 occupants

3.
Color X – Payoff ($) P(X) X∙P(X)
Red 1.00 0.5 0.5
Green -5.00 0.4 -2
Blue 10.00 0.1 1
ΣP(X) = 1.0 ΣX∙P(X) = -0.5

a) μ = ∑ X ∙ P(X) = −0.5 ≈ −$0.50; The players lose $0.50 per play, so the operator
makes $0.50 per play.

Page | 65
 Color X – Payoff ($) P(X) X∙P(X)
Red 1.00 0.5 0.5
Green XG 0.4 0.4XG
Blue 10.00 0.1 1
ΣP(X) = 1.0 ΣX∙P(X) = 1.5 + XG

b) μ = ∑ X ∙ P(X) = 1.5 + 0.4X𝐺 = 0

0.4X𝐺 = −1.5
X 𝐺 = −3.75 ≈ −$3.75

4. 𝐸(Profit) = μ = ∑ X ∙ P(X) = 15,000(0.6) + 8,000(0.3) + (−5,000)(0.1) = 10,900 ≈

$10,900

Page | 66
Lesson 27 – The Binomial Probability Distribution
1. X = the number of correct answers; p = 0.5; n = 15
a) P(X = 0) = 15C0 ∙ (0.5)0 (0.5)15 = 0.000 030 517 ≈ 0.000 0
b) P(X = 7) = 15C7 ∙ (0.5)7 (0.5)8 = 0.196 380 615 ≈ 0.196 4
c) P(X ≥ 9) = 0.153 + 0.092 + 0.042 + 0.014 + 0.003 + 0.000 + 0.000 = 0.304 ≈
0.304
d) μ = np = 15(0.5) = 7.5 ≈ 7.5 correct
e) σ = √np(1 − p) = √15(0.5)(0.5) = 1.936 491 673 ≈ 1.9 correct

2. X = the number of correct answers; p = 0.2; n = 15

a) P(X = 0) = 15C0 ∙ (0.2)0 (0.8)15 = 0.035 184 372 ≈ 0.035 2
b) P(X = 7) = 15C7 ∙ (0.2)7 (0.8)8 = 0.013 819 057 ≈ 0.013 8
c) P(X ≥ 9) = 0.001 + 0.000 + 0.000 + 0.000 + 0.000 + 0.000 + 0.000 ≈ 0.001
d) μ = np = 15(0.2) = 3 ≈ 3.0 correct
e) σ = √np(1 − p) = √15(0.2)(0.8) = 1.549 193 338 ≈ 1.5 correct

3. a)
X – Number of Drivers Wearing Seat Belts P(X)
0 0.008
1 0.076
2 0.265
3 0.412
4 0.240
ΣP(X) = 1.001

b) μ = np = 4(0.7) = 2.8 ≈ 2.8 drivers

σ = √np(1 − p) = √4(0.7)(0.3) = 0.916 515 139 ≈ 0.9 drivers
c) P(X ≤ 2) = 0.008 + 0.076 + 0.265 = 0.349 ≈ 0.349

4. X = the number of vehicles requiring warranty service within the first year; p = 0.12; n = 12.
a) P(X = 0) = 12C0 ∙ (0.12)0 (0.88)12 = 0.215 671 155 ≈ 0.215 7
b) P(X = 1) = 12C1 ∙ (0.12)1 (0.88)11 = 0.352 916 436 ≈ 0.352 9
c) P(X = 2) = 12C2 ∙ (0.12)2 (0.88)10 = 0.264 687 327 ≈ 0.264 7
d) P(X < 3) = P(X = 0) + P(X = 1) + P(X = 2) = 0.833 274 92 ≈ 0.833 3
e) μ = np = 12(0.12) = 1.44 ≈ 1.4 vehicles
σ = √np(1 − p) = √12(0.12)(0.88) = 1.125 699 782 ≈ 1.1 vehicles

5. X = the number of homes that have large-screen TVs; p = 0.9; n = 9.

a) P(X = 9) = 0.387
b) P(X < 5) = P(X = 0) + P(X = 1) + … + P(X = 4) = 0.001
c) P(X > 5) = P(X = 6) + P(X = 7) + P(X = 8) + P(X = 9) = 0.045 + 0.172 + 0.387 + 0.387 = 0.991
d) P(X ≥ 7) = P(X = 7) + P(X = 8) + P(X = 9) = 0.172 + 0.387 + 0.387 = 0.946

Page | 67
6. X = the number of customer problems solved; p = 0.7; n = 15.
a) μ = np = 15(0.7) = 10.5 ≈ 10.5 problems solved
σ = √np(1 − p) = √15(0.7)(0.3) = 1.774 823 935 ≈ 1.8 problems solved
b) P(X = 10) = 0.206
c) P(X = 10 or X = 11) = P(10 ≤ X ≤ 11) = 0.206 + 0.219 = 0.425
d) P(X > 10) = P(X = 11) + P(X = 12) + … + P(X = 15) = 0.219 + 0.170 + 0.092 + 0.031 + 0.005 =
0.517

Page | 68
Lesson 28 – The Hypergeometric Probability Distribution
1. X = the number of males chosen for the committee; N = 18; n = 6; S = 11.
11C0∙7C6
a) P(X = 0) = 18C6
= 0.000 377 073 ≈ 0.000 4
11C3∙7C3
b) P(X = 3) = 18C6
= 0.311 085 972 ≈ 0.311 1

2. X = the number of white marbles chosen; N = 200; n = 3; S = 40.

40C1 ∙ 160C2
P(X = 1) = = 0.387 391 503 ≈ 0.387 4
200C3

The binomial probability distribution may be used to approximate the hypergeometric

probability distribution in this case because n < 0.05N.
X = the number of white marbles chosen; n = 3; p = 0.2.
P(X = 1) = 3C1(0.2)1 (0.8)2 = 0.384 ≈ 0.384

3. In theory it is the hypergeometric case because the sampling is completed without

replacement. However, the binomial may be used since n < 0.05N. The calculation using
both formulas will be shown.
X = the number of committee members chosen who receive social assistance; N = 1000; n =
10; S = 80.
80C2 ∙ 920C8
P(X = 2) = = 0.148 109 843 ≈ 0.148 1
1000C10

X = the number of committee members chosen who receive social assistance; n = 10; p =
80
1000
= 0.08.
P(X = 2) = 10C2(0.08)2 (0.92)8 = 0.147 807 035 ≈ 0.147 8

4. X = the number of boxes of bolts chosen from Supplier A; N = 40; n = 10; S = 10.
10C5 ∙ 30C5
P(X = 5) = = 0.042 365 44 ≈ 0.042 4
40C10

5. X = the number of females chosen for the committee; N = 20; n = 6; S = 8.

8C3∙12C3
a) P(X = 3) = 20C6
= 0.317 853 457 ≈ 0.317 9
8C0∙12C6 8C1∙12C5 8C2∙12C4
b) P(X < 3) = P(X = 0) + P(X = 1) + P(X = 2) = 20C6
+ 20C6 + 20C6 =
0.544 891 64 ≈ 0.544 9

Page | 69
6. a) X = the number of bolts with stripped threads chosen; n = 5; p = 0.5.

P(X = 2) = 5C2(0.5)2 (0.5)3 = 0.312 5 ≈ 0.312 5

b) X = the number of bolts with stripped threads chosen; N = 20; n = 5; S = 10.

10C2∙10C3
P(X = 2) = 20C5
= 0.348 297 213 ≈ 0.348 3

7. In theory this is a hypergeometric problem. However, the combinations are too large for
the calculator to handle. Since n < 0.05N, the binomial approximation may be used to
calculate the probability. X = the number of unemployed workers chosen in the sample; n =
2,000 1
25; p = = .
12,000 6

1 2 5 23
P(X = 2) = 25C2 (6) (6) = 0.125 791 152 ≈ 0.125 8

Page | 70
Lesson 29 – The Poisson Probability Distribution
1. X = the number of typesetting errors observed.
1
a) μ = np = 18,000 (2000) = 9 ≈ 9.0 errors
90 ∙e−9
b) P(X = 0) = 0!
= 0.000 123 409 ≈ 0.000 1
10
9 ∙e −9
c) P(X = 10) = 10! = 0.118 580 076 ≈ 0.118 6
d) P(X < 10) = P(X = 0) + P(X = 1) + P(X = 2) + ⋯ + P(X = 9)
P(X < 10) = 0.0001 + 0.0011 + 0.0050 + 0.0150 + 0.0337 + 0.0607 + 0.0911
+ 0.1171 + 0.1318 + 0.1318 = 0.5874
e) P(X ≥ 15) = P(X = 15) + P(X = 16) + P(X = 17) + ⋯
P(X ≥ 15) = 0.0194 + 0.0109 + 0.0058 + 0.0029 + 0.0014 + 0.0006 + 0.0003
+ 0.0001 = 0.0414
Or
P(X ≥ 15) = 1 − P(X < 15) = P(X = 0) + P(X = 1) + P(X = 2) + ⋯ + P(X = 14)
P(X < 15) = 1 − (0.0001 + 0.0011 + 0.0050 + 0.0150 + 0.0337 + 0.0607 + 0.0911
+ 0.1171 + 0.1318 + 0.1318 + 0.1186 + 0.0970 + 0.0728 + 0.0504
+ 0.0324) = 0.0414

2. X = the number of transaction errors observed.

7
a) μ = np = 300 (1000) = 2.1 ≈ 2.1 errors
2.110 ∙ e−2.1
P(X = 10) = = 0.000 056 287 ≈ 0.000 1
10!
This is not a likely event given the error rate of the office.
b) No. It is more likely that error rate of 7 per 1000 is incorrect.

3. X = the number of people in line at a parcel post counter.

36 ∙e−3
a) P(X = 6) = 6!
= 0.050 409 406 ≈ 0.050 4
b) P(X ≤ 4) = P(X = 0) + P(X = 1) + … + P(X = 4) = 0.815 2

Page | 71
Discrete Probability Distribution Exercises
1.

X P(X) X∙P(X) X2∙P(X)

0 0.08 0 0
1 0.12 0.12 0.12
2 0.16 0.32 0.64
3 0.26 0.78 2.34
4 0.17 0.68 2.72
5 0.10 0.50 2.50
6 0.06 0.36 2.16
7 0.05 0.35 2.45
2
ΣP(X) = 1.00 ΣX∙P(X) = 3.11 Σ X ∙P(X) = 12.93
a) μ = ∑ X ∙ P(X) = 3.11 ≈ 3.1 rotten oranges/box
b) σ = √∑ X 2 P(X) − (∑ X ∙ P(X))2 = √12.93 − 3.112 = 1.804 965 374 ≈
1.8 rotten oranges/box

2. X = the number of members who have loans with the credit union; n = 6; p = 0.2.
a) P(X = 0) = 6C0(0.2)0 (0.8)6 = 0.262 144 ≈ 0.262 1
b) P(X = 6) = 6C6(0.2)6 (0.8)0 = 0.000 064 ≈ 0.000 1
c) P(X ≥ 1) = 1 − P(X = 0) = 1 − 0.262 144 = 0.737 856 ≈ 0.737 9

3. X = the number of counterfeit bills; N = 30; n = 2; S = 10.

10C1∙20C1
a) P(X = 1) = 30C2
= 0.459 770 114 ≈ 0.459 8
10C0∙20C2
b) P(X ≥ 1) = 1 − P(𝑋 = 0) = 1 − = 0.563 218 39 ≈ 0.563 2
30C2

4. X = number of transactions where proper procedure was not followed; n = 30; p = 0.03.
μ = np = 300(0.03) = 9 ≈ 9.0 transactions
93 ∙e−9
a) P(X = 3) = 3!
= 0.014 994 291 ≈ 0.015 0
b) P(X < 5) = 0.000 1 + 0.001 1 + 0.005 0 + 0.015 0 + 0.033 7 = 0.054 9 ≈ 0.054 9

5. X = the number of cartons that do not have 100 bolts; n = 30; p = 0.01.
μ = np = 30(0.01) = 0.3 ≈ 0.3 cartons
0.35 ∙ e−0.3
P(X = 5) = = 0.000 015 001 ≈ 0.000 0
5!

Page | 72
Unit 7 – The Normal Probability
Distribution
Lesson 31 – The Standard Normal Probability Distribution
1. a)

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

P(0 < 𝑍 < 1.51) = 0.4345

b)

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

P(−2.34 < 𝑍 < 0) = 0.4904

c)

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

P(−1.48 < 𝑍 < 0.63) = 0.4306 + 0.2357 = 0.6663

Page | 73
d)

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

P(Z > −1.67) = 0.4525 + 0.5 = 0.9525

e)

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

P(0.91 < 𝑍 < 2.56) = 0.4948 − 0.3186 = 0.1762

f)

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

P(Z > 2.33) = 0.5 − 0.4901 = 0.0099

Page | 74
2.

0.02

0.48

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

Z1 ≈ −2.05

3.

0.01

0.49

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

Z1 ≈ 2.33

4.

0.3

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

Z1 ≈ 0.84

Page | 75
5.

0.49 0.49

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

Z ≈ ±2.33

6.

0.45 0.45

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

Z ≈ ±1.645

7.

0.495 0.495

-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00

Z

Z ≈ ±2.575

Page | 76
Lesson 32 – Application of the Normal Probability Distribution
1. a)

142 152 162 172 182 192 202

Height (cm)

172 − 172 X − μ 192 − 172

P(172 cm < 𝑋 < 192 𝑐𝑚) = P ( < < )
10 σ 10
= P(0 < 𝑍 < 2.00) = 0.4772

b)

142 152 162 172 182 192 202

Height (cm)

160 − 172 X − μ 180 − 172

P(160 cm < 𝑋 < 180 𝑐𝑚) = P ( < < )
10 σ 10
= P(−1.20 < 𝑍 < 0.80) = 0.6730

c)

142 152 162 172 182 192 202

Height (cm)

X − μ 180 − 172
P(X > 180 𝑐𝑚) = P ( > ) = P(Z > 0.80) = 0.5 − 0.2881 = 0.2119
σ 10

Page | 77
2. a)

61 66 71 76 81 86 91
Score

X − μ 76 − 76
P(X > 76) = P ( > ) = P(Z > 0) = 0.5
σ 5

b)

61 66 71 76 81 86 91
Score

65 − 76 X − μ 85 − 76
P(65 < 𝑋 < 85) = P ( < < ) = P(−2.20 < 𝑍 < 1.80)
5 σ 5
= 0.4861 + 0.4641 = 0.9502

c)

0.1

0.4

61 66 71 76 81 86 91
Score

𝑋−76
Z ≈ −1.28; −1.28 = 5
𝑋 = 76 + (−1.28)(5) = 69.6 ≈ 69.6

Page | 78
 d)

0.15

0.35

61 66 71 76 81 86 91
Score

𝑋−76
Z ≈ 1.04; 1.04 = 5
𝑋 = 76 + (1.04)(5) = 81.2 ≈ 81.2

e)

61 66 71 76 81 86 91
Score

X − μ 80 − 76
P(X > 80) = P ( > ) = P(Z > 0.80) = 0.5 − 0.2881 = 0.2119
σ 5
0.2119(1000) = 211.9 ≈ 212 people

3. a)

179.18 222.27 265.36 308.45 351.54 394.63 437.72

Amount Owing ($)

X − μ 250 − 308.45
P(X > $250) = P ( > ) = P(Z > −1.36) = 0.4131 + 0.5
σ 43.09
= 0.9131

Page | 79
 b)

179.18 222.27 265.36 308.45 351.54 394.63 437.72

Amount Owing ($)

X − μ 400 − 308.45
P(X < $400) = P ( < ) = P(Z < 2.12) = 0.5 + 0.4830 = 0.9830
σ 43.09

c)

179.18 222.27 265.36 308.45 351.54 394.63 437.72

Amount Owing ($)

250 − 308.45 X − μ 400 − 308.45

P($250 < 𝑋 < $400) = P ( < < )
43.09 σ 43.09
= P(−1.36 < 𝑍 < 2.12) = 0.4131 + 0.4830 = 0.8961

4.

0.05

35 45 55 65 75 85 95
Score

𝑋 − 65
Z ≈ 1.645; 1.645 =
10
𝑋 = 65 + (1.645)(10) = 81.45 ≈ 81.5

Page | 80
5.

0.4 0.4

9.4 9.6 9.8 10.0 10.2 10.4 10.6

Diameter (cm)

𝑋 − 10
Z ≈ ±1.28; ±1.28 =
0.2
𝑋 = 10 + (±1.28)(0.2) = 9.744, 10.256 ≈ (9.74 cm, 10.26 cm)

6.

0.12

40 50 60 70 80 90 100
Score

𝑋 − 70
Z ≈ 0.31; 0.31 =
10
𝑋 = 70 + (0.31)(10) = 73.1 ≈ 73.1
If the scores must be whole numbers then the actual score would be 73.

Page | 81
Unit 6 – 7 Review
1. a)
Price per Bushel ($) P(X) X∙P(X) X2∙P(X)
2.20 0.05 0.110 0.2420
2.30 0.25 0.575 1.3225
2.40 0.35 0.840 2.0160
2.50 0.20 0.500 1.2500
2.60 0.15 0.390 1.0140
ΣP(X) = 1.00 ΣX∙P(X) = 2.415 Σ X2∙P(X) = 5.8445

b) 𝜇 = ∑ X ∙ P(X) = 2.415 ≈ $2.415 per bushel

c) σ = √∑ X 2 ∙ P(X) − (∑ X ∙ P(X))2 = √5.8445 − 2.4152 = 0.110 792 599 ≈
$0.111 per bushel
d) E(X) = nμ = 38,400(2.415) = 92,736 ≈ $92,736.00

2. X = number of incorrect prices; n = 8; p = 0.40.

a) P(X = 6) = 8C6(0.4)6 (0.6)2 = 0.041 287 68 ≈ 0.041 288
b) P(X ≤ 2) = P(X = 0) + P(X = 1) + P(X = 2) = 0.017 + 0.090 + 0.209 = 0.316
c) μ = np = 8(0.4) = 3.2 ≈ 3.2 incorrect items
𝜎 = √np(1 − p) = √8(0.4)(0.6) = 1.385 640 646 ≈ 1.4 incorrect items

3. X = number of contaminated cans selected; N = 24; n = 3; S = 1.

1𝐶1 ∙ 23𝐶2
𝑃(𝑋 = 1) = = 0.125 ≈ 0.125 0
24𝐶3

4. X = number of cars arriving at the Shell gas station; µ = 5.

51 e−5
a) P(X = 1) = 1!
= 0.033 689 735 ≈ 0.033 690
b) P(X < 5) = P(X = 0) + P(X = 1) + P(X = 2) + P(X = 3) + P(X = 4) = 0.0067 +
0.0337 + 0.0842 + 0.1404 + 0.1755 = 0.4405

5. X = number of defective switches selected; n = 500; p = 0.001.

μ = np = 500(0.001) = 0.5 ≈ 0.5 defective switches
0.54 e−0.5
P(X = 4) = = 0.001 579 506 ≈ 0.001 6
4!

Page | 82
6. a)

-3 -2 -1 0 1 2 3
Z

P(1.00 < 𝑍 < 2.00) = 0.4772 − 0.3413 = 0.1359

b)

-3 -2 -1 0 1 2 3
Z

P(Z < −1.63) = 0.5 − 0.4484 = 0.0516

c)

-3 -2 -1 0 1 2 3
Z

P(Z > −1.63) = 0.4484 + 0.5 = 0.9484

d)

Page | 83
 -3 -2 -1 0 1 2 3
Z

P(−1.50 < 𝑍 < 0.50) = 0.4332 + 0.1915 = 0.6247

7. a)

6 13 20 27 34 41 48
Monthly Interest Paid ($)

X − μ 30 − 27
P(X > $30) = P ( > ) = P(Z > 0.43) = 0.5 − 0.1664 = 0.3336
σ 7

b)

0.20

6 13 20 27 34 41 48
Monthly Interest Paid ($)

X − 27
Z ≈ 0.84; 0.84 =
7
X = 27 + 0.84(7) = 32.88 ≈ $32.88

Page | 84
8.

0.4

70 80 90 100 110 120 130

Daily Production (1000 Cans)

X − 100
Z ≈ 1.28; 1.28 =
10
X = 100 + 1.28(10) = 112.8 ≈ 112.8 (1000 cans) ≈ 112,800 cans

9.

0.01

282 285 288 291 294 297 300 303

Fill (mL)

300 − 𝜇
𝑍 ≈ 2.33; 2.33 =
3.1
μ = 300 − 2.33(3.1) = 292.777 ≈ 292.8 mL

Page | 85
Unit 8 – Sampling Distributions
Lesson 35 – The Central Limit Theorem
640
1. The shape of the sampling distribution is normal since n > 30, µ = $9,600 and 𝜎𝑋̅ = =
√1024
20 ≈ $20. The FCF does not need to be applied because n < 0.05N.
a)

9540 9560 9580 9600 9620 9640 9660

Income ($)

9550 − 9600 ̅ X − μ 9650 − 9600

P($9,550 < ̅
X < $9,650) = P ( < < )
20 σX̅ 20
= P(−2.50 < 𝑍 < 2.50) = 0.4938 + 0.4938 = 0.9876

b)

9540 9560 9580 9600 9620 9640 9660

Income ($)

̅
X − μ 9660 − 9600
̅ > $9,660) = P (
P(X > ) = P(Z > 3.00) = 0.5 − 0.4987
σX̅ 20
= 0.0013

Page | 86
 700
2. The shape of the sampling distribution is normal since n > 30, µ = 2500 kg and 𝜎𝑋̅ = =
√40
110.679 718 1 ≈ 110 𝑘𝑔.
a)

2167 2278 2389 2500 2611 2722 2833

Weight (kg)

2300 − 2500 ̅
X−μ 2700 − 2500
̅ < 2700 𝑘𝑔) = P (
P(2300 kg < X < < )
110.679 718 1 σX̅ 110.679 718 1
= P(−1.81 < 𝑍 < 1.81) = 0.4649 + 0.4649 = 0.9298

b)

2167 2278 2389 2500 2611 2722 2833

Weight (kg)

̅−μ
X 500
̅ − μ) > |500|kg] = P [
P[(X >| |] = P[Z > |4.52|]
σX̅ 110.679 718 1
= P(Z < −4.52) + P(Z > 4.52) = 0.0000

Page | 87
3. Effectively, we are being asked to determine the two test scores that will mark the
boundaries of the middle 95% of the scores. The Z score that corresponds to these
boundaries may be found by dividing 0.95 by 2. This is 0.4750 and the corresponding Z
score is ±1.96.
The shape of the sampling distribution is normal since n > 30, µ = 75% and 𝜎𝑋̅ =
10 500−100
√ = 0.895 322 962 ≈ 0.9%.
√100 500−1

72 73 74 75 76 77 78
Test Score

𝑋̅ − 75
±1.96 =
0.895 322 962
̅
𝑋𝐿 = 75 − 1.96(0.895 322 962) = 73.245 166 99 ≈ 73.2%
𝑋̅𝐿 = 75 + 1.96(0.895 322 962) = 76.754 833 01 ≈ 76.8%

The average would fall between 73.2% and 76.8% in 95 cases out of 100.

This type of problem is known as a confidence interval. We will study confidence intervals in
the next unit.

4.

Population Distribution

2760 2820 2880 2940 3000 3060 3120

Students Wages ($)

𝑋−𝜇 3000−2940
a) 𝑃(𝑋 > $3000) = 𝑃 ( 𝜎
> 60
) = 𝑃(𝑍 > 1.00) = 0.5 − 0.3413 = 0.1587

Page | 88
 60
b) 𝜎𝑋̅ = = 10 ≈ $10
√36

c)

Sampling Distribution

2910 2920 2930 2940 2950 2960 2970

Students Wages ($)

𝑋̅ − 𝜇 3000 − 2940
𝑃(𝑋̅ > $3000) = 𝑃 ( > ) = 𝑃(𝑍 > 6.00) = 0.5 − 0.5 = 0.0000
𝜎𝑋̅ 10

This event is highly unlikely.

Page | 89
Lesson 36 – The Sampling Distribution of the Proportion
1. X = the number of defective batteries chosen. The shape of the sampling distribution is
0.2(0.8)
normal since np > 5 and n(1 – p) > 5. The mean proportion, p = 0.2, and 𝜎𝑝̅ = √ 30
=
0.073 029 674 ≈ 0.07.

-0.025 0.05 0.125 0.2 0.275 0.35 0.425

Proportion of Defective Batteries

3 X 6
P(3 batteries < 𝑋 < 6 𝑏𝑎𝑡𝑡𝑒𝑟𝑖𝑒𝑠) = P ( < < ) = P(0.1 < p ̅ < 0.2)
30 n 30
0.1 − 0.2 p
̅ −p 0.2 − 0.2
= P( < < ) = P(−1.37 < 𝑍 < 0)
0.073 029 674 σp̅ 0.073 029 674
= 0.4147

2. X = the number of voters who support the ruling party. The shape of the sampling
distribution is normal since np > 5 and n(1 – p) > 5. The mean proportion, p = 0.45, and
0.45(0.55)
𝜎𝑝̅ = √ 1024
= 0.015 546 678 ≈ 0.015 5.

0.40 0.42 0.43 0.45 0.47 0.48 0.50

Proportion of Voter Support

p̅−p 0.43 − 0.45 p

̅ −p 0.47 − 0.45
P(p
̅ < 0.43) + P(p
̅ > 0.47) = P ( < )+P( > )
σp̅ 0.015 546 678 σp̅ 0.015 546 678
= P(𝑍 < −1.29) + P(𝑍 > 1.29) = 1 − (0.4015 + 0.4015) = 0.1970

Page | 90
3. X = the number of nonconforming components (for both a) and b).
a) The shape of the sampling distribution is normal since np > 5 and n(1 – p) > 5. The
0.05(0.95)
mean proportion, p = 0.05, and 𝜎𝑝̅ = √ 200
= 0.015 411 035 ≈ 0.015 4.

0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1
Proportion of Nonconforming Components

p
̅−p 0.04 − 0.05
P(p
̅ < 0.04) = P ( < ) = P(𝑍 < −0.65) = 0.5 − 0.2422
σp̅ 0.015 411 035
= 0.2578

b) The shape of the sampling distribution is normal since np > 5 and n(1 – p) > 5. The
0.025(0.975)
mean proportion, p = 0.025, and 𝜎𝑝̅ = √ = 0.011 039 701 ≈ 0.011 0.
200

-0.01 0 0.01 0.02 0.03 0.04 0.05 0.06

Proportion of Nonconforming Components

p
̅−p 0.04 − 0.025
P(p
̅ ≥ 0.04) = P ( < ) = P(𝑍 ≥ 1.36) = 0.5 − 0.4131
σp̅ 0.011 039 701
= 0.0869

Page | 91
Unit 9 – Confidence Intervals
Lesson 37 – Point Estimates and Confidence Intervals
1. The sampling distribution is normal since n > 30. The standard error of the mean is 𝜎𝑋̅ =
𝜎 58
= = 5.8 ≈ $5.80. The Z score associated with 90% confidence is Z = ±1.645.
√𝑛 √100

494.60 500.40 506.20 512.00 517.80 523.60 529.40

Amount Owing ($)

E = ZσX̅ = 1.645(5.8) = 9.541 ≈ $9.54

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.90
P[(512.00 − 9.541) < 𝜇 < (512.00 + 9.541)] = 0.90
P[502.459 < 𝜇 < 521.541] = 0.90

We are 90% confident that the true mean amount owing in a large journal of receivables will
be between $502.46 and $521.54.

2. The sampling distribution is normal since n > 30. The standard error of the mean is 𝜎𝑋̅ =
𝜎 𝑁−𝑛 15 500−80
√ = √ = 1.538 581 967 ≈ $1.54. The Z score associated with 95%
√𝑛 𝑁−1 √80 500−1
confidence is Z = ±1.96.

80.38 81.92 83.46 85.00 86.54 88.08 89.62

Amount per Household ($)

E = ZσX̅ = 1.96(1.538 581 97) = 3.015 620 655 ≈ $3.02

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.95
P[(85.00 − 3.015 620 655) < 𝜇 < (85.00 + 3.015 620 655)] = 0.95
P[81.984 379 34 < 𝜇 < 88.015 620 66] = 0.95

Page | 92
 We are 95% confident that the true mean amount spent per household winterizing a
dwelling in the community will be between $81.98 and $88.02.

3. The sample size must be at least 30 to consider the sampling distribution to be normal if the
shape of the population distribution is unknown.

4. The sampling distribution is normal since n > 30. The standard error of the mean is 𝜎𝑋̅ =
𝜎 6
= = 0.447 213 595 ≈ 0.4%. The Z score associated with 98% confidence is Z =
√𝑛 √180
±2.33.

80.65 81.10 81.55 82.00 82.45 82.90 83.35

Test Score

E = ZσX̅ = 2.33(0.447 213 595) = 1.042 007 678 ≈ 1.0%

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.98
P[(82 − 1.042 007 678) < 𝜇 < (82 + 1.042 007 678)] = 0.98
P[80.957 992 32 < 𝜇 < 83.042 007 68] = 0.98

We are 98% confident that the true mean test score of employees at the company will be
between 81.0% and 83.0%.

Page | 93
Lesson 38 – Confidence Intervals for Means, σ Unknown
X = 2.029 16̅ ≈ $2.029; and s =
1. The sample statistics for the set of data are: n = 12; ̅
1.274 558 45 ≈ $1.275.
a) The sampling distribution is normal since the population distribution is normal. The
s 1.274 558 45
standard error of the mean is sX̅ = = = 0.367 933 332 ≈ $0.368. The t
√n √12
score associated with 90% confidence and 11 degrees of freedom is t = ±1.796.

0.55 0.92 1.29 1.66 2.03 2.4 2.77 3.14 3.51

Purchase Amount ($)

E = tsX̅ = 1.796(0.367 933 332) = 0.660 808 264 ≈ $0.661

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.90
P[(2.029 16̅ − 0.660 808 264) < 𝜇 < (2.029 16̅ + 0.660 808 264)] = 0.90
P[1.368 358 402 < 𝜇 < 2.689 974 931] = 0.90

We are 90% confident that the true mean purchase amount at the snack food outlet will
be between $1.368 and $2.690.

b) 800(1.368 358 402) = 1094.486 722 ≈ $1,094.69 and 800(2.689 974 931) = 2151.979 945
≈ $2,151.98.
The total of all 800 purchases should lie between $1,094.69 and $2,151.98.

2. a) The value of the population mean is unknown. The best estimate of this value is the
sample mean of 20 eggs per month.
b) We need to use the Student t distribution because the population standard deviation is
unknown. We need to assume that the population distribution of eggs laid per chicken
per month is normal.
s 2
c) The standard error of the mean is … sX̅ = = = 0.447 213 595 ≈
√n √20
0.4 eggs per chicken per month. The t score associated with 95% confidence and 19
degrees of freedom is t = ±2.093.

Page | 94
 18 18.5 19 19.5 20 20.5 21 21.5 22
Eggs Laid (per month per chicken)

E = tsX̅ = 2.093(0.447 213 595) = 0.936 018 055 ≈ 0.9 eggs per chicken per month
̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.95
P[(20 − 0.936 018 055) < 𝜇 < (20 + 0.936 018 055)] = 0.95
P[19.063 981 94 < 𝜇 < 20.936 018 06] = 0.95

We are 95% confident that the true mean number of eggs laid per chicken per month
will be between 19.1 and 20.9.

̅ = 98.6 ≈ $98.60; and s =

3. The sample statistics for the set of data are: n = 10; X
5.541 760 651 ≈ $5.54.
s
We will have to assume normality in this case. The standard error of the mean is sX̅ = =
√n
5.541 760 651
= 1.752 458 59 ≈ $1.75. The t score associated with 90% confidence and 9
√10
degrees of freedom is t = ±1.833.

91.60 93.35 95.10 96.85 98.60 100.35 102.10 103.85 105.60

Weekly Child Care Cost ($)

E = tsX̅ = 1.833(1.752 458 59) = 3.212 256 596 ≈ $3.21

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.90
P[(98.6 − 3.212 256 596) < 𝜇 < (98.6 + 3.212 256 596)] = 0.90
P[95.387 743 4 < 𝜇 < 101.812 256 6] = 0.90

We are 90% confident that the true mean weekly child care cost will be between $95.39 and
$101.81.

Page | 95
Lesson 39 – Confidence Intervals for Proportions
1. X = the number of vouchers that are incorrect. The shape of the sampling distribution is
𝑋 9
normal since 𝑛𝑝̅ > 5 and 𝑛(1 − 𝑝̅ ) > 5. The mean proportion, 𝑝̅ = = = 0.25, and
𝑛 36
0.25(0.75)
𝜎𝑝̅ = √ = 0.072 168 783 ≈ 0.07. The Z score associated with 98% confidence is Z
36
= ±2.33.

0.04 0.11 0.18 0.25 0.32 0.39 0.46

Incorrect Vouchers

E = Zσp̅ = 2.33(0.072 168 783) = 0.168 153 265 ≈ 0.17

̅ − E) < 𝜇 < (p
P[(p ̅ + E)] = 0.98
P[(0.25 − 0.168 153 265) < 𝑝 < (0.25 + 0.168 153 265)] = 0.98
P[0.081 846 734 < 𝑝 < 0.418 153 265] = 0.98

We are 98% confident that the true proportion of incorrect vouchers will be between 0.08
and 0.42.

2. X = the number of employees with 2 or more dependents. The shape of the sampling
𝑋
distribution is normal since 𝑛𝑝̅ > 5 and 𝑛(1 − 𝑝̅ ) > 5. The mean proportion, 𝑝̅ = 𝑛 =
48 ̇
0.3(0.6) ̇
144
= 0. 3̇, and 𝜎𝑝̅ = √ 144 = 0.039 283 71 ≈ 0.039. The Z score associated with 95%
confidence is Z = ±1.96.

0.21 0.25 0.29 0.33 0.37 0.41 0.45

Axis Title

E = Zσp̅ = 1.96(0.039 283 71) = 0.076 996 071 ≈ 0.077

Page | 96
 ̅ − E) < 𝜇 < (p
P[(p ̅ + E)] = 0.95
P[(0. 3̇ − 0.076 996 071) < 𝑝 < (0. 3̇ + 0.076 996 071)] = 0.95
P[0.256 337 261 < 𝑝 < 0.410 329 405] = 0.95

We are 95% confident that the true proportion of employees with two or more dependents
will be between 0.256 and 0.410.

3. X = the number of defective batteries. The shape of the sampling distribution is normal
𝑋 84
since 𝑛𝑝̅ > 5 and 𝑛(1 − 𝑝̅ ) > 5. The mean proportion, 𝑝̅ = 𝑛 = 600 = 0.14, and 𝜎𝑝̅ =
0.14(0.86) 10 000−600
√ √ = 0.013 734 829 ≈ 0014. The Z score associated with 99%
600 10 000−1
confidence is Z = ±2.575.

0.098 0.112 0.126 0.14 0.154 0.168 0.182

Defective Batteries

E = Zσp̅ = 2.575(0.013 734 829) = 0.035 367 185 ≈ 0.035

̅ − E) < 𝜇 < (p
P[(p ̅ + E)] = 0.99
P[(0.14 − 0.035 367 185) < 𝑝 < (0.14 + 0.035 367 185)] = 0.99
P[0.104 632 815 < 𝑝 < 0.175 367 185] = 0.99

We are 99% confident that the true proportion of defective batteries will be between 0.104
and 0.175. This confidence interval is not compatible with a 10% defective rate.

Page | 97
Lesson 40 – Sample Size Determination
Zσ 2 2.575(12) 2
1. n = [ E ] = [ 4
] = 59.675 625; ∴ n = 60 cereal products

Z 2 1.96 2
2. a) n = p(1 − p) [E] = 0.5(0.5) [0.04] = 600.25; ∴ n = 601 burial plots
6
b) p = 20 = 0.3
Z2 1.96 2
n = p(1 − p) [ ] = 0.3(0.7) [ ] = 504.21; ∴ n = 505 burial plots
E 0.04

Page | 98
Unit 8 – 9 Review
1. a)

0 4 8 12 16 20 24
Weeks Unemployed

X − μ 18 − 12
P(X > 18 𝑤𝑒𝑒𝑘𝑠) = P ( > ) = P(Z > 1.50) = 0.5 − 0.4332 = 0.0668
σ 4

b) The sampling distribution is normal since the population distribution is normal. The
𝜎 4
standard error of the mean is 𝜎𝑋̅ = = = 0.4 ≈ 0.4 weeks. The finite correction
√𝑛 √100
factor does not need to be applied since n < 0.05N (it is almost 1).

10.8 11.2 11.6 12.0 12.4 12.8 13.2

Weeks Unemployed

̅
̅ > 18 𝑤𝑒𝑒𝑘𝑠) = P (X−μ > 18−12) = P(Z > 15.00) = 0.5 − 0.5 ≈ 0.0000
P(X σ 0.4̅
𝑋

Notice the horizontal scale difference from the population distribution in part a) to the
sampling distribution in part b). If the two graphs were plotted on the same horizontal scale
they would look like this:

0 2 4 6 8 10 12 14 16 18 20 22 24
Weeks Unemployed

Page | 99
c) The sampling distribution is normal since the population distribution is normal. The
𝑠 3.75
standard error of the mean is 𝑠𝑋̅ = = = 0.118 585 412 ≈ 0.1 weeks. The
√𝑛 √1000
finite correction factor does not need to be applied since n < 0.05N (It is almost 1). The t
score associated with 99% confidence and 999 (relatively infinite) degrees of freedom is
t = ±2.576.

11.44 11.56 11.68 11.8 11.92 12.04 12.16

Weeks Unemployed

E = tsX̅ = 2.576(0.118 585 412) = 0.305 476 022 ≈ 0.3 weeks

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.99
P[(11.8 − 0.305 476 022) < 𝜇 < (11.8 + 0.305 476 022)] = 0.99
P[11.494 523 98 < 𝜇 < 12.105 476 02] = 0.99

We are 99% confident that the true mean time a person in Canada is unemployed will
be between 11.5 and 12.1 weeks.

d) The sampling distribution is normal since the population distribution is normal. The
𝑠 3.75
standard error of the mean is 𝑠𝑋̅ = = = 0.838 525 491 ≈ 0.8 weeks. The finite
√𝑛 √20
correction factor does not need to be applied since n < 0.05N. The t score associated
with 99% confidence and 19 degrees of freedom is t = ±2.861.

8.44 9.28 10.12 10.96 11.8 12.64 13.48 14.32 15.16

Weeks Unemployed

E = tsX̅ = 2.861(0.838 525 491) = 2.399 021 431 ≈ 2.4 weeks

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.99
P[(11.8 − 2.399 021 431) < 𝜇 < (11.8 + 2.399 021 431)] = 0.99
P[9.400 978 569 < 𝜇 < 14.199 021 43] = 0.99

Page | 100
 We are 99% confident that the true mean time a person in Canada is unemployed will
be between 9.4 and 14.2 weeks.

e) The sampling distribution is normal since the population distribution is normal. The
𝑠 3.75 1,200,000−150,000
standard error of the mean is 𝑠𝑋̅ = = √ 1,200,000−1 = 0.009 057 114 ≈
√𝑛 √150 000
0.009 weeks. The t score associated with 99% confidence and 149,999 (relatively
infinite) degrees of freedom is t = ±2.576.

11.77 11.78 11.79 11.8 11.81 11.82 11.83

Weeks Unemployed

E = tsX̅ = 2.576(0.009 057 114) = 0.023 331 126 ≈ 0.02 weeks

̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.99
P[(11.8 − 0.023 331 126) < 𝜇 < (11.8 + 0.023 331 126)] = 0.99
P[11.776 668 87 < 𝜇 < 11.823 331 13] = 0.99

We are 99% confident that the true mean time a person in Canada is unemployed will
be between 11.78 and 11.82 weeks.

Zσ 2 1.75(4.2) 2
f) n=[E] =[ 0.5
] = 216.09; ∴ n = 217 unemployed labourers

2. The sampling distribution is normal since n > 30. The standard error of the mean is sX̅ =
s 2500
= = 176.776 695 3 ≈ 180 km. The finite correction factor does not need to be
√n √200
applied since n < 0.05N. The t score associated with 98% confidence and 199 degrees of
freedom is t = ±2.345.

34469 34646 34823 35000 35177 35354 35531

Distance Traveled (km)

Page | 101
 E = tsX̅ = 2.345(176.776 695 3) = 414.541 350 5 ≈ 410 km
̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.98
P[(35,000 − 414.541 350 5) < 𝜇 < (35,000 + 414.541 350 5)] = 0.98
P[34,585.458 65 < 𝜇 < 35,414.541 35] = 0.98

We are 98% confident that the true mean distance business travel for the company’s
salespeople will be between 34,590 and 35,410 km.

3. We must assume that the population distribution of fuel economy is normal so that the
sampling distribution can be assumed to be normal for the small sample of 10.
s 1.2 L
The standard error of the mean is sX̅ = = = 0.379 473 319 ≈ 0.38 100 km. The t
√n √10
score associated with 90% confidence and 9 degrees of freedom is t = ±1.833.

5.68 6.06 6.44 6.82 7.2 7.58 7.96 8.34 8.72

Fuel Economy (L/100 km)

L
E = tsX̅ = 1.833(0.379 473 319) = 0.695 574 594 ≈ 0.70
100 km
̅ − E) < 𝜇 < (X
P[(X ̅ + E)] = 0.90
P[(7.2 − 0.695 574 594) < 𝜇 < (7.2 + 0.695 574 594)] = 0.90
P[6.504 425 406 < 𝜇 < 7.895 574 594] = 0.90

We are 90% confident that the true mean fuel consumption for the compact vehicle will be
between 6.50 and 7.90 L/100 km.

4. X = the number of women employed in the Alberta public sector. The shape of the sampling
𝑋
distribution is normal since 𝑛𝑝̅ > 5 and 𝑛(1 − 𝑝̅ ) > 5. The mean proportion, 𝑝̅ = 𝑛 =
51 0.34(0.66)
= 0.34, and 𝑠𝑝̅ = √ = 0.038 678 159 ≈ 0.039. The Z score associated with
150 150
90% confidence is Z = ±1.645.

Page | 102
 0.223 0.262 0.301 0.34 0.379 0.418 0.457
Proportion of Women Employed

E = Zσp̅ = 1.645(0.038 678 159) = 0.063 625 571 ≈ 0.064

̅ − E) < 𝜇 < (p
P[(p ̅ + E)] = 0.90
P[(0.34 − 0.063 625 571) < 𝑝 < (0.34 + 0.063 625 571)] = 0.90
P[0.276 374 428 < 𝑝 < 0.403 625 571] = 0.90

We are 90% confident that the true proportion of women employed in Alberta’s public
sector will be between 0.276 and 0.404.

Z 2 1.96 2
5. n = p(1 − p) [E] = 0.5(0.5) [0.02] = 2401; ∴ 2401 voters

Zσ 2 2.575(800) 2
6. n = [ ] = [ ] = 2652.25; ∴ 2653 entries
E 40

Page | 103
Unit 10 – Tests of Hypothesis
Lesson 41 – The Logic of Hypothesis Testing
1. H0 : μ = 10 hours/week H1 : μ > 10 ℎ𝑜𝑢𝑟𝑠/𝑤𝑒𝑒𝑘

2. H0 : μ = 15 minutes H1 : μ < 15 𝑚𝑖𝑛𝑢𝑡𝑒𝑠

3. a) H0 : μ = 142 mL H1 : μ < 142 𝑚𝐿

b) H0 : μ = 142 mL H1 : μ ≠ 142 mL

Page | 104
Lesson 42 – Tests of Hypothesis for a Population Mean
1. Step 1: Formulate the null and alternative hypothesis.
H0 : μ = $60.00 H1 : μ ≠ $60.00
Step 2: State the level of significance, α.
α = 0.02
Step 3: Determine the test distribution to use.
The sample size used to test the null hypothesis is large, n > 30, and the population standard
deviation is known, therefore the Z distribution can be used. The sampling distribution of
𝜎 12
the mean has 𝜇𝑋̅ = 𝜇 = $60.00 and 𝜎𝑋̅ = = = 0.8 ≈ $0.80.
√𝑛 √225
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are Z = ±2.33. The decision rule could be
stated as we will not reject H0 if -2.33 ≤ Z ≤ 2.33, otherwise we will reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋̅−𝜇 65−60
The sample evidence indicates a mean of $65.00. The test statistic is 𝑍 = 𝜎𝑋
= 0.8
=
̅

6.25. Since 6.25 > 2.33, we reject H0. The sample evidence indicates that the mean credit
card sales of the retailer are significantly different from $60.00 at the 2% level of
significance.

2. a)
Step 1: Formulate the null and alternative hypothesis.
H0 : μ = $560.00 H1 : μ ≠ $560.00
Step 2: State the level of significance, α.
α = 0.10
Step 3: Determine the test distribution to use.
The population standard deviation is unknown and the sample size is small, n <30. The
population distribution of journal entries is normal so the t distribution can be used.
𝑠 80
The sampling distribution of the mean has 𝜇𝑋̅ = 𝜇 = $560.00 and 𝑠𝑋̅ = = =
√𝑛 √20
17.888 543 82 ≈ $17.89.
Step 4: Establish a decision rule.

Page | 105
 The decision rule is two-tailed. The critical values are t = ±1.729 for 19 degrees of
freedom. The decision rule could be stated as we will not reject H0 if -1.729 ≤ t ≤ 1.729,
otherwise we will reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

𝑋̅−𝜇
The sample evidence indicates a mean of $600.00. The test statistic is 𝑡 = 𝑠𝑋
=
̅
600−560
17.888 543 82
= 2.236. Since 2.236 > 1.729, we reject H0. The sample evidence indicates
that the mean value of a journal entry is significantly different from $560.00 at the 10%
level of significance.

b) α = 0.10

c) A type 2 error occurs when we do not reject H0 when it should be rejected. In this
problem this would have occurred if we had decided not to reject H0. We would have
concluded that the mean value of a journal entry is not significantly different from
$560.00 when in fact it is.

3. Step 1: Formulate the null and alternative hypothesis.

H0 : μ = 25,000 kg H1 : μ > 25,000 𝑘𝑔
Step 2: State the level of significance, α.
α = 0.01
Step 3: Determine the test distribution to use.
The population standard deviation is unknown. The sample size is large therefore the
sampling distribution can be assumed to be normal. The t distribution should be used in
these cases. The sampling distribution of the mean has 𝜇𝑋̅ = 𝜇 = 25,000 𝑘𝑔 and 𝑠𝑋̅ =
𝑠 3000
= = 474.341 649 ≈ 470 𝑘𝑔.
√𝑛 √40
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is t = 2.426 for 39 degrees of
freedom. The decision rule could be stated as we will reject H0 if t > 2.426, otherwise we
will not reject H0.

Page | 106
 Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

𝑋̅−𝜇
The sample evidence indicates a mean of 27,000 kg. The test statistic is 𝑡 = =
𝑠𝑋
̅
27,000−25,000
474.341 649
= 4.216. Since 4.216 > 2.426, we reject H0. The sample evidence indicates
that the mean weight of the trucking firm’s trucks is significantly greater than 25,000 kg at
the 10% level of significance.

4. Step 1: Formulate the null and alternative hypothesis.

H0 : μ = $24,500 H1 : μ < $24,500
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
The sample size used to test the null hypothesis is large, n > 30, and the population standard
deviation is known, therefore the Z distribution can be used. The sampling distribution of
𝜎 500
the mean has 𝜇𝑋̅ = 𝜇 = $24,500 and 𝜎𝑋̅ = = = 50 ≈ $50.
√𝑛 √100
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is Z = -1.645. The decision rule
could be stated as we will reject H0 if Z < -1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋̅−𝜇
The sample evidence indicates a mean of $24,300. The test statistic is 𝑍 = 𝜎𝑋
=
̅
24,300−24,500
50
= −4.00. Since -4.00 < -1.645, we reject H0. The sample evidence indicates

Page | 107
 that the mean wage of the group of minority workers is significantly less than $24,500 at the
5% level of significance.

5. Step 1: Formulate the null and alternative hypothesis.

H0 : μ = 800 tonnes H1 : μ < 800 𝑡𝑜𝑛𝑛𝑒𝑠
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
The population standard deviation is unknown and the sample size is small. The t
distribution can be used if it is reasonable to assume that the population distribution of
chemical produced per day can be assumed to be normal. The sampling distribution of the
𝑠 8.336 666
mean has 𝜇𝑋̅ = 𝜇 = 800 𝑡𝑜𝑛𝑛𝑒𝑠 and 𝑠𝑋̅ = = = 3.728 270 376 ≈ 3.7 𝑡𝑜𝑛𝑛𝑒𝑠.
√𝑛 √5
The sample standard deviation calculated from the data is 𝑠 = 8.336 666 ≈ 8.3 𝑡𝑜𝑛𝑛𝑒𝑠.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is t = -2.132 for 4 degrees of
freedom. The decision rule could be stated as we will reject H0 if t < -2.132, otherwise we
will not reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

The calculated sample data has a mean of 𝑋̅ = 795 ≈ 795.0 𝑡𝑜𝑛𝑛𝑒𝑠. The test statistic is
𝑋̅−𝜇 795−800
𝑡= 𝑠𝑋
= 3.728 270 376 = −1.341. Since -1.341 > -2.132, we do not reject H0. The sample
̅

evidence indicates that the mean amount of chemical produced per day for the past week is
not significantly less than 800 tonnes at the 5% level of significance.

The answer for the last question is shown in bold in Step 3.

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Lesson 43 – Test of Hypothesis for a Population Proportion
1. Step 1: Formulate the null and alternative hypothesis.
H0 : p = 0.01 H1 : p > 0.01
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
Since 1234(0.01) > 5 and 1234(1 − 0.01) > 5, the Z distribution can be used. The
𝑝(1−𝑝) 0.01(0.99)
sampling distribution of the mean has 𝜇𝑝̅ = 𝑝 = 0.01 and 𝜎𝑝̅ = √ =√ =
𝑛 1234
0.002 832 435 ≈ 0.002 8.
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 1.645. The decision rule
could be stated as we will reject H0 if Z > 1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋 20
The sample evidence indicates a proportion of 𝑝̅ = 𝑛 = 1234 = 0.016 207 455 ≈ 0.016 2.
𝑝̅ −𝑝 0.016 207 455−0.01
The test statistic is 𝑍 = 𝜎𝑝
= 0.002 832 435
= 2.19. Since 2.19 > 1.645, we reject H0.
̅

The sample evidence indicates that the mean proportion of overcharges by UPC scanners is
significantly greater than 1% at the 5% level of significance.

It does appear as if scanners actually increased the occurrences of overcharges.

2. Step 1: Formulate the null and alternative hypothesis.

H0 : p = 0.054 H1 : p > 0.054
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
Since 120(0.054) > 5 and 120(1 − 0.054) > 5, the Z distribution can be used. The
𝑝(1−𝑝) 0.054(0.946)
sampling distribution of the mean has 𝜇𝑝̅ = 𝑝 = 0.054 and 𝜎𝑝̅ = √ 𝑛
=√ 120
=
0.020 632 498 ≈ 0.021.

Page | 109
 Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 1.645. The decision rule
could be stated as we will reject H0 if Z > 1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋 10
The sample evidence indicates a proportion of 𝑝̅ = 𝑛 = 120 = 0.083̅ ≈ 0.083. The test
𝑝̅ −𝑝 ̅−0.054
0.083
statistic is 𝑍 = = = 1.42. Since 1.42 < 1.645, we do not reject H0. The
𝜎𝑝 ̅ 0.020 632 498
sample evidence indicates that the mean proportion of civilian medical doctors leaving
Canada from Saskatchewan is not significantly greater than 5.4% at the 5% level of
significance.

3. Step 1: Formulate the null and alternative hypothesis.

H0 : p = 0.32 H1 : p < 0.32
Step 2: State the level of significance, α.
α = 0.02
Step 3: Determine the test distribution to use.
Since 118(0.32) > 5 and 118(1 − 0.32) > 5, the Z distribution can be used. The sampling
𝑝(1−𝑝) 0.32(0.68)
distribution of the mean has 𝜇𝑝̅ = 𝑝 = 0.32 and 𝜎𝑝̅ = √ 𝑛
=√ 118
=
0.042 942 61 ≈ 0.043.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is Z = -2.05. The decision rule
could be stated as we will reject H0 if Z < -2.05, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Page | 110
 Step 5: Evaluate the evidence.
𝑋 22
The sample evidence indicates a proportion of 𝑝̅ = 𝑛 = 118 = 0.186 440 678 ≈ 0.186. The
𝑝̅ −𝑝 0.186 440 678−0.32
test statistic is 𝑍 = 𝜎𝑝
= 0.042 942 61
= −3.11. Since -3.11 < -2.05, we reject H0. The
̅

sample evidence indicates that the mean proportion of late deliveries since the just-in-time
system was installed is significantly less than 32% at the 2% level of significance. The
proportion of late deliveries was reduced significantly.

4. Step 1: Formulate the null and alternative hypothesis.

H0 : p ≤ 0.025 H1 : p > 0.025
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
Since 250(0.025) > 5 and 250(1 − 0.025) > 5, the Z distribution can be used. The
𝑝(1−𝑝) 0.025(0.975)
sampling distribution of the mean has 𝜇𝑝̅ = 𝑝 = 0.025 and 𝜎𝑝̅ = √ 𝑛
=√ 250
=
0.009 874 208 ≈ 0.010.
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 1.645. The decision rule
could be stated as we will reject H0 if Z > 1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋 8
If there are 8 nonconforming cans, the sample proportion would be 𝑝̅ = 𝑛 = 250 = 0.032 ≈
𝑝̅ −𝑝 0.032−0.025
0.032. The test statistic is 𝑍 = 𝜎𝑝
= 0.009 874 208 = 0.71. Since 0.71 < 1.645, we do not
̅

reject H0. If the sample has 8 nonconforming cans, the mean proportion of nonconforming
cans in the shipment would not be considered significantly greater than 2.5% at the 5% level
of significance. The shipment should not be rejected in this situation.

Page | 111
Unit 11 – Two Sample Tests of
Hypothesis
Lesson 44 – Comparing Two Population Means, σ Known
1. (O – Old bolts and N – New bolts)

a) 𝐻0 : μN = μO or 𝐻0 : μN − μO = 0

𝐻1 : μN > μO or 𝐻1 : μN − μO > 0

b) We are dealing with known population standard deviations so we use the Z distribution.

c) ZC = 2.05. If Z > 2.05 reject H0, otherwise do not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

𝜎2 𝜎2 800 400
d) The standard error is 𝜎𝑋̅1 −𝑋̅2 = √𝑛1 + 𝑛2 = √ 40 + 40
= 5.477 225 575
1 2

(𝑋̅1 −𝑋̅2 )−0 400−370

The test statistic is 𝑍 = 𝜎𝑋
= 5.477 225 575 = 5.48
̅ 1 −𝑋
̅2

Since 5.48 > 2.05, we reject H0. The sample evidence indicates that the mean yield point
of the new bolts is significantly greater than that of the old bolts at the 2% level of
significance.

Page | 112
2. Step 1: Formulate the null and alternative hypothesis.
(B – Bibs’ brand and C – Competitor’s brand)
𝐻0 : μB = μC or 𝐻0 : μB − μC = 0
𝐻1 : μB < μC or 𝐻1 : μB − μC < 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
We have large samples with known population standard deviations, so the Z distribution
may be applied. The mean of the sampling distribution is 0. The standard error will be
calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is Z = -1.645. The decision rule
could be stated as we will reject H0 if Z < -1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝜎12 𝜎22 1.12 1.32
The standard error is … 𝜎𝑋̅1 −𝑋̅2 = √ + =√ + = 0.246 935 766 ≈ 0.25 𝑘𝑔
𝑛1 𝑛2 40 55

(𝑋̅1 −𝑋̅2 )−0 3.5−3.7

The test statistic is … 𝑍 = = = −0.81
𝜎𝑋
̅ 1 −𝑋
̅2 0.246 935 766

Since -0.81 > -1.645, we do not reject H0. The sample evidence indicates that the mean
weight gain by the babies eating Bibs is not significantly less than the weight gain by the
babies eating the competitor’s brand at the 5% level of significance.

Page | 113
3. Step 1: Formulate the null and alternative hypothesis.
(1 – Oil related stocks and 2 – other stocks)
𝐻0 : μ1 = μ2 or 𝐻1 : μ1 − μ2 = 0
𝐻1 : μ1 ≠ μ2 or 𝐻1 : μ1 − μ2 ≠ 0
Step 2: State the level of significance, α.
α = 0.01
Step 3: Determine the test distribution to use.
We have large samples with known population standard deviations, so the Z distribution
may be applied. The mean of the sampling distribution is 0. The standard error will be
calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are Z = ±2.575. The decision rule could be
stated as we will not reject H0 if -2.575 ≤ Z ≤ 2.575, otherwise we will reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝜎2 𝜎2 5.12 6.72
The standard error is … 𝜎𝑋̅1 −𝑋̅2 = √𝑛1 + 𝑛2 = √ 32 + 49
= 1.314 889 71 ≈ 1.31%
1 2

(𝑋̅1 −𝑋̅2 )−0 31.4−34.9

The test statistic is … 𝑍 = 𝜎𝑋
= 1.314 889 71 = −2.66
̅ 1 −𝑋
̅2

Since -2.66 < -2.575, we reject H0. The sample evidence indicates that there is a significant
difference in the turnover rates of the two types of stock at the 1% level of significance.

Page | 114
Lesson 45 – Comparing Two Population Means, σ Unknown
1. Step 1: Formulate the null and alternative hypothesis.
(B – Buffalo Pound and W – Wakamow)
𝐻0 : μB = μW or 𝐻0 : μB − μW = 0
𝐻1 : μB ≠ μW or 𝐻1 : μB − μW ≠ 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
We will have to assume that the population distributions of sales for the Burger Chalet are
normally distributed to proceed. Since we are dealing with unknown population standard
deviations, we must use the t distribution. The mean of the sampling distribution is 0. The
standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are t = ±2.086 for 20 degrees of freedom.
The decision rule could be stated as we will not reject H0 if -2.086 ≤ t ≤ 2.086, otherwise we
will reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4

Step 5: Evaluate the evidence.

The standard error is …

(𝑛𝐵 − 1)𝑠𝐵2 + (𝑛𝑊 − 1)𝑠𝑊

2
1 1
𝑠𝑋̅𝐵 −𝑋̅𝑊 = √ [ + ]
𝑛𝐵 + 𝑛𝑊 − 2 𝑛𝐵 𝑛𝑊

(10 − 1)10.52 + (12 − 1)14.32 1 1

=√ [ + ] = 5.451 149 726
10 + 12 − 2 10 12
≈ 5.45 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
(𝑋̅𝐵 −𝑋̅𝑊 )−0 83.6−78.8
The test statistic is … 𝑡 = = = 0.881
𝑠𝑋
̅ 𝐵 −𝑋
̅𝑊 5.451 149 726

Since 0.881 < 2.086, we do not reject H0. The sample evidence indicates that there is not a
significant difference in sales at the two locations at the 5% level of significance.

Page | 115
2. (S – Sales and A – Audit)
Sample Size Sample Mean Sample Variance
Sales 6 142.5 149.9
Audit 7 130.285 714 249.238 095
Step 1: Formulate the null and alternative hypothesis.
𝐻0 : μS = μA or 𝐻0 : μS − μA = 0
𝐻1 : μS > μA or 𝐻1 : μS − μA > 0
Step 2: State the level of significance, α.
α = 0.10
Step 3: Determine the test distribution to use.
We will have to assume that the population distributions of sales for the travel expenses are
normally distributed to proceed. Since we are dealing with unknown population standard
deviations, we must use the t distribution. The mean of the sampling distribution is 0. The
standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is t = 1.363 for 11 degrees of
freedom. The decision rule could be stated as we will reject H0 if t > 1.363, otherwise we
will not reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4

Step 5: Evaluate the evidence.

The standard error is …

(𝑛𝑆 − 1)𝑠𝑆2 + (𝑛𝐴 − 1)𝑠𝐴2 1 1

𝑠𝑋̅𝑆 −𝑋̅𝐴 = √ [ + ]
𝑛𝑆 + 𝑛𝐴 − 2 𝑛𝑆 𝑛𝐴

(6 − 1)149.9 + (7 − 1)249.238 095 2 1 1

=√ [ + ] = 7.947 891 907
6+7−2 6 7
≈ $7.95
(𝑋̅𝑆 −𝑋̅𝐴 )−0 142.5−130.285 714
The test statistic is … 𝑡 = = = 1.537
𝑠𝑋
̅ 𝑆 −𝑋
̅𝐴 7.947 891 907

Page | 116
 Since 1.537 > 1.363, we reject H0. The sample evidence indicates that the mean daily
expenses for the sales staff are significantly greater than the mean daily expenses for the
audit staff at the 10% level of significance.

3. (CF – cash flow and N – not cash flow)

Step 1: Formulate the null and alternative hypothesis.
𝐻0 : μCF = μN or 𝐻0 : μCF − μN = 0
𝐻1 : μCF ≠ μN or 𝐻1 : μCF − μN ≠ 0
Step 2: State the level of significance, α.
α = 0.02
Step 3: Determine the test distribution to use.
The sample sizes are large, so we have normality. Since we are dealing with unknown
population standard deviations, we must use the t distribution. The mean of the sampling
distribution is 0. The standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are t = ±2.381 for 70 degrees of freedom.
The decision rule could be stated as we will not reject H0 if -2.381 ≤ t ≤ 2.381, otherwise we
will reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4

Step 5: Evaluate the evidence.

The standard error is …

2
(𝑛𝐶𝐹 − 1)𝑠𝐶𝐹 + (𝑛𝑁 − 1)𝑠𝑁2 1 1
𝑠𝑋̅𝐶𝐹 −𝑋̅𝑁 = √ [ + ]
𝑛𝐶𝐹 + 𝑛𝑁 − 2 𝑛𝐶𝐹 𝑛𝑁

(36 − 1)22.92 + (36 − 1)27.62 1 1

=√ [ + ] = 5.977 202 058 ≈ 5.98
36 + 36 − 2 36 36

(𝑋̅𝐶𝐹 −𝑋̅𝑁 )−0 36.2−47.6

The test statistic is … 𝑡 = 𝑠𝑋
= 5.977 202 058 = −1.907
̅ ̅𝑁
𝐶𝐹 −𝑋

Since -1.907 > -2.381, we do not reject H0. The sample evidence indicates that there is not a
significant difference in the two methods at the 2% level of significance.

Page | 117
Lesson 46 – Comparing Two Population Proportions
1. Step 1: Formulate the null and alternative hypothesis.
(A – Loan Officer A and B – Loan Officer B)
H0 : pA = pB or H0 : pA − pB = 0
H1 : pA ≠ pB or H1 : pA − pB ≠ 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
The sample size used for each group is sufficiently large such that 𝑛𝑝̅ ≥ 5 and 𝑛(1 − 𝑝̅ ) ≥ 5,
therefore the Z distribution can be used. The mean of the sampling distribution is 0. The
standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are Z = ±1.96. The decision rule could be
stated as we will not reject H0 if -1.96 ≤ Z ≤ 1.96, otherwise we will reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

9 6
𝑝̅𝐴 = = 0.15 𝑎𝑛𝑑 𝑝̅𝐵 = = 0.075
60 80

The pooled estimate of the population proportion is …

𝑋𝐴 + 𝑋𝐵 9+6 15
𝑝𝑐 = = = = 0.107 142 857
𝑛𝐴 + 𝑛𝐵 60 + 80 140

The standard error is …

pc (1 − pc ) pc (1 − pc )
σp̅A −p̅B = √ +
nA nB

0.107 142 857(1 − 0.107 142 857) 0.107 142 857(1 − 0.107 142 857)
=√ +
60 80
= 0.052 822 214 ≈ 0.053

The test statistic is …

Page | 118
 (𝑝̅𝐴 − 𝑝̅𝐵 ) − 0 0.15 − 0.075
𝑍= = = 1.42
σp̅A −p̅B 0.052 822 214

Since 1.42 < 1.96, we do not reject H0. The sample evidence indicates that there is not a
significant difference in the default rates between the two loan officers at the 5% level of
significance.

2. Step 1: Formulate the null and alternative hypothesis.

(A – Commercial A and B – Commercial B)
H0 : pA = pB or H0 : pA − pB = 0
H1 : pA ≠ pB or H1 : pA − pB ≠ 0
Step 2: State the level of significance, α.
α = 0.02
Step 3: Determine the test distribution to use.
The sample size used for each group is sufficiently large such that 𝑛𝑝̅ ≥ 5 and 𝑛(1 − 𝑝̅ ) ≥ 5,
therefore the Z distribution can be used. The mean of the sampling distribution is 0. The
standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are Z = ±2.33. The decision rule could be
stated as we will not reject H0 if -2.33 ≤ Z ≤ 2.33, otherwise we will reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

63 60
𝑝̅𝐴 = = 0.42 𝑎𝑛𝑑 𝑝̅𝐵 = = 0.3
150 200

The pooled estimate of the population proportion is …

𝑋𝐴 + 𝑋𝐵 63 + 60 123
𝑝𝑐 = = = = 0.350 428 571
𝑛𝐴 + 𝑛𝐵 150 + 200 350

The standard error is …

Page | 119
 pc (1 − pc ) pc (1 − pc )
σp̅A −p̅B = √ +
nA nB

0.350 428 571(1 − 0.350 428 571) 0.350 428 571(1 − 0.350 428 571)
=√ +
150 200
= 0.051 566 877 ≈ 0.052

The test statistic is …

(𝑝̅𝐴 − 𝑝̅𝐵 ) − 0 0.42 − 0.3

𝑍= = = 2.327
σp̅A −p̅B 0.051 566 877

Since 2.327 < 2.33, we do not reject H0. The sample evidence indicates that there is not a
significant difference in the recall proportions for the two commercials at the 2% level of
significance.

3. Step 1: Formulate the null and alternative hypothesis.

(A – 8-bit machines and B – 32-bit machines)
H0 : pA = pB or H0 : pA − pB = 0
H1 : pA < pB or H1 : pA − pB < 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
The sample size used for each group is sufficiently large such that 𝑛𝑝̅ ≥ 5 and 𝑛(1 − 𝑝̅ ) ≥ 5,
therefore the Z distribution can be used. The mean of the sampling distribution is 0. The
standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is Z = -1.645. The decision rule
could be stated as we will reject H0 if Z < -1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

13 7
𝑝̅𝐴 = = 0.072̇ 𝑎𝑛𝑑 𝑝̅𝐵 = = 0.104 477 611
180 67

Page | 120
The pooled estimate of the population proportion is …

𝑋𝐴 + 𝑋𝐵 13 + 7 20
𝑝𝑐 = = = = 0.080 971 659
𝑛𝐴 + 𝑛𝐵 180 + 67 247

The standard error is …

pc (1 − pc ) pc (1 − pc )
σp̅A −p̅B = √ +
nA nB

0.080 971 659(1 − 0.080 971 659) 0.080 971 659(1 − 0.080 971 659)
=√ +
180 67
= 0.039 039 639 ≈ 0.039

The test statistic is …

(𝑝̅𝐴 − 𝑝̅𝐵 ) − 0 0.072̇ − 0.104 477 611

𝑍= = = −0.83
σp̅A −p̅B 0.039 039 639

Since -0.83 > -1.645, we do not reject H0. The sample evidence indicates that there is not a
significant difference in the performance between the two machines at the 5% level of
significance.

Page | 121
Unit 10 – 11 Review
1. Step 1: Formulate the null and alternative hypothesis.
H0 : μ = 178 cm H1 : μ > 178 𝑐𝑚
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
The sample size used to test the null hypothesis is large, n > 30, and the population standard
deviation is known, therefore the Z distribution can be used. The sampling distribution of
𝜎 5
the mean has 𝜇𝑋̅ = 𝜇 = 178 𝑐𝑚 and 𝜎𝑋̅ = = ̅̅̅̅ ≈ 0.5 𝑐𝑚.
= 0. 45
√𝑛 √121
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 1.645. The decision rule
could be stated as we will reject H0 if Z > 1.645, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋̅−𝜇 181−178
The sample evidence indicates a mean of 181 cm. The test statistic is 𝑍 = 𝜎𝑋
= ̅̅̅̅
0.45
=
̅

6.60. Since 6.60 > 1.645, we reject H0. The sample evidence indicates that the mean height
of adult males in North America is significantly greater than 178 cm at the 5% level of
significance.

2. Step 1: Formulate the null and alternative hypothesis.

H0 : p>45 = p≤45 or H0 : p>45 − p≤45 = 0
H1 : p>45 ≠ p≤45 or H1 : p>45 − p≤45 ≠ 0
Step 2: State the level of significance, α.
α = 0.01

Page | 122
Step 3: Determine the test distribution to use.
The sample size used for each group is sufficiently large such that 𝑛𝑝̅ ≥ 5 and 𝑛(1 − 𝑝̅ ) ≥ 5,
therefore the Z distribution can be used. The mean of the sampling distribution is 0. The
standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical values are Z = ±2.575. The decision rule could be
stated as we will not reject H0 if -2.575 ≤ Z ≤ 2.575, otherwise we will reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

380 120
𝑝̅>45 = = 0.327 586 206 𝑎𝑛𝑑 𝑝̅≤45 = = 0.255 319 148
1160 470

The pooled estimate of the population proportion is …

𝑋>45 + 𝑋≤45 380 + 120

𝑝𝑐 = = = 0.306 748 466
𝑛>45 + 𝑛≤45 1160 + 470

The standard error is …

pc (1 − pc ) pc (1 − pc )
σp̅>45 −p̅≤45 = √ +
n>45 n≤45

0.306 748 466(1 − 0.306 748 466) 0.306 748 466(1 − 0.306 748 466)
=√ +
1160 470
= 0.025 214 624 ≈ 0.025 2

The test statistic is …

(𝑝̅>45 − 𝑝̅≤45 ) − 0 0.327 586 206 − 0.255 319 148

𝑍= = = 2.87
σp̅>45 −p̅≤45 0.025 214 624

Since 2.87 > 2.575, we reject H0. The sample evidence indicates that there is a significant
difference between the two groups in the proportion who prefer an accountant for financial
planning at the 1% level of significance.

Page | 123
3. Step 1: Formulate the null and alternative hypothesis.
H0 : p = 0.5 H1 : p < 0.5
Step 2: State the level of significance, α.
α = 0.10
Step 3: Determine the test distribution to use.
Since 100(0.5) > 5 and 100(1 − 0.5) > 5, the Z distribution can be used. The sampling
𝑝(1−𝑝) 0.5(0.5)
distribution of the mean has 𝜇𝑝̅ = 𝑝 = 0.5 and 𝜎𝑝̅ = √ 𝑛
=√ 100
= 0.05 ≈ 0.050.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is Z = -1.28. The decision rule
could be stated as we will reject H0 if Z < -1.28, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋 40
The sample evidence indicates a proportion of 𝑝̅ = = = 0.4 ≈ 0.400. The test
𝑛 100
𝑝̅ −𝑝 0.4−0.5
statistic is 𝑍 = 𝜎𝑝
= 0.05
= −2.00. Since -2.00 < -1.28, we reject H0. The sample
̅

evidence indicates that the mean proportion of males winning prizes is significantly less than
half at the 10% level of significance. THEY’RE RIGGED!

4. Step 1: Formulate the null and alternative hypothesis.

H0 : μ = 300 mL H1 : μ ≠ 300 mL
Step 2: State the level of significance, α.
α = 0.01
Step 3: Determine the test distribution to use.
The population standard deviation is unknown and the sample size is small. The population
distribution of fill is normal so the t distribution may be used. The sampling distribution of
𝑠 17.410 485 535
the mean has 𝜇𝑋̅ = 𝜇 = 300 𝑚𝐿 and 𝑠𝑋̅ = = = 6.155 536 126 ≈ 6.2 𝑚𝐿.
√𝑛 √8
The sample standard deviation calculated from the data is 𝑠 = 17.410 485 535 ≈ 17.4 𝑚𝐿.
Step 4: Establish a decision rule.
The decision rule is two-tailed. The critical value is t = ±3.499 for 7 degrees of freedom. The
decision rule could be stated as we will not reject H0 if -3.499 ≤ t ≤ 3.499, otherwise we will
reject H0.

Page | 124
 Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

The calculated sample data has a mean of 𝑋̅ = 300.375 ≈ 300.4 𝑚𝐿. The test statistic is
𝑋̅−𝜇 300.375−300
𝑡= = = 0.061. Since 0.061 < 3.499, we do not reject H0. The sample
𝑠𝑋
̅ 6.155 536 126
evidence indicates that the mean fill of the drink dispenser is not significantly different from
300 mL at the 1% level of significance. The drink dispenser does not need adjustment.

5. Step 1: Formulate the null and alternative hypothesis.

(I – Internal and E – External)
𝐻0 : μI = μE or 𝐻0 : μI − μE = 0
𝐻1 : μI < μE or 𝐻1 : μI − μE < 0
Step 2: State the level of significance, α.
α = 0.01
Step 3: Determine the test distribution to use.
We will have to assume that the population distributions of wages for the professionals
are normally distributed to proceed. Since we are dealing with small samples and unknown
population standard deviations, we must use the t distribution. The mean of the sampling
distribution is 0. The standard error will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is t = -2.457 for 30 degrees of
freedom. The decision rule could be stated as we will reject H0 if t < -2.457, otherwise we
will not reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4
t

Page | 125
 Step 5: Evaluate the evidence.

The standard error is …

(𝑛𝐼 − 1)𝑠𝐼2 + (𝑛𝐸 − 1)𝑠𝐸2 1 1 (15 − 1)52 + (17 − 1)42 1 1

𝑠𝑋̅𝐼 −𝑋̅𝐸 = √ [ + ]=√ [ + ]
𝑛𝐼 + 𝑛𝐸 − 2 𝑛𝐼 𝑛𝐸 15 + 17 − 2 15 17
= 1.592 137 545 ≈ 1.6 ($1000/𝑦𝑒𝑎𝑟)

The test statistic is …

(𝑋̅𝐼 − 𝑋̅𝐸 ) − 0 45 − 48
𝑡= = = −1.884
𝑠𝑋̅𝐼 −𝑋̅𝐸 1.592 137 545

Since -1.884 > -2.457, we do not reject H0. The sample evidence indicates that firm’s
employees do not earn significantly less than similar professionals at other firms at the 1%
level of significance.

6. Step 1: Formulate the null and alternative hypothesis.

(D – Domestic and F – Foreign)
𝐻0 : μD = μF or 𝐻0 : μD − μF = 0
𝐻1 : μD < μF or 𝐻1 : μD − μF < 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
We are dealing with unknown population standard deviations and large samples, so we
must use the t distribution. The mean of the sampling distribution is 0. The standard error
will be calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is t = -1.660 for 108 degrees of
freedom. The decision rule could be stated as we will reject H0 if t < -1.660, otherwise we
will not reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

The standard error is …

Page | 126
 (𝑛𝐷 − 1)𝑠𝐷2 + (𝑛𝐹 − 1)𝑠𝐹2 1 1
𝑠𝑋̅𝐷 −𝑋̅𝐹 = √ [ + ]
𝑛𝐷 + 𝑛𝐹 − 2 𝑛𝐷 𝑛𝐹

(50 − 1)2002 + (60 − 1)3102 1 1

=√ [ + ] = 50.895 954 14 ≈ $50.90
50 + 60 − 2 60 50

The test statistic is …

(𝑋̅𝐷 − 𝑋̅𝐹 ) − 0 800 − 950

𝑡= = = −2.947
𝑠𝑋̅𝐷 −𝑋̅𝐹 50.895 954 14

Since -2.947 < -1.660, we reject H0. The sample evidence indicates mean cost to repair a
foreign car is significantly greater than the cost to repair a domestic car at the 5% level of
significance.

7. Step 1: Formulate the null and alternative hypothesis.

𝐻0 : μ1 = μ2 or 𝐻0 : μ1 − μ2 = 0
𝐻1 : μ1 > μ2 or 𝐻1 : μ1 − μ2 > 0
Step 2: State the level of significance, α.
α = 0.02
Step 3: Determine the test distribution to use.
We have large samples with known population standard deviations, so the Z distribution
may be applied. The mean of the sampling distribution is 0. The standard error will be
calculated at step 5.
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 2.05. The decision rule
could be stated as we will reject H0 if Z > 2.05, otherwise we will not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

The standard error is …

𝜎12 𝜎22 42 42
𝜎𝑋̅1 −𝑋̅2 = √ + =√ + = 0.8 ≈ 0.8 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 𝑤𝑒𝑒𝑘
𝑛1 𝑛2 50 50

Page | 127
The test statistic is …

(𝑋̅1 − 𝑋̅2 ) − 0 50 − 48
𝑍= = = 2.50
𝜎𝑋̅1 −𝑋̅2 0.8

Since 2.50 > 2.05, we reject H0. The sample evidence indicates that the mean weekly sales
at eye level are significantly greater than the mean weekly sales not at eye level at the 2%
level of significance.

Page | 128
Unit 12 – Simple Linear Regression and
Correlation
Lesson 47 – Introduction to Simple Linear Regression
1. There appears to be a curve in the data.

Advertising Expenditures vs. Sales

60.0

50.0

40.0
Sales ($1000)

30.0

20.0

10.0

0.0
0.0 5.0 10.0 15.0 20.0 25.0
Advertising Expenditures ($1000)

2. There appears to be a linear relationship.

Family Size vs. Amount Spent on Food

160
140
Amount Spent on Food

120
100
80
60
40
20
0
0 1 2 3 4 5 6 7
Family Size

Page | 129
3. There appears to be a linear relationship.

Temperature vs. Number of Beers Sold

40,000

35,000

30,000
Number of Beers Sold

25,000

20,000

15,000

10,000

5,000

0
15 20 25 30 35
Temperature (°C)

4. There appears to be a linear relationship.

Weekly Usage vs. Annual Maintenance Expense

6.00
Annual Maintenance Expense ($1000)

5.00

4.00

3.00

2.00

1.00

0.00
0 5 10 15 20 25 30 35 40 45
Weekly Usage (hours)

Page | 130
5. There appears to be a linear relationship.

Number of Competitors vs. Sales

4.0

3.5

3.0
Sales ($1000)

2.5

2.0

1.5

1.0

0.5

0.0
0 1 2 3 4 5 6
Number of Competitors Within 1 Mile

Page | 131
Lesson 48 – The Simple Linear Regression Equation
1.
Ad. Exp. ($1000) Sales ($1000) X2 XY Y2
1.0 19.0 1 19 361
2.0 32.0 4 64 1024
4.0 44.0 16 176 1936
6.0 40.0 36 240 1600
10.0 52.0 100 520 2704
14.0 53.0 196 742 2809
20.0 54.0 400 1080 2916
2 2
ΣX = 57 ΣY = 294 ΣX = 753 ΣXY = 2841 ΣY = 13 350

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 7(2841)−57(294)
a) 𝑏 = 𝑛 ∑ 𝑋 2 −(∑ 𝑋)2
= 7(753)−(57)2
= 1.547 477 745 ≈ 1.55
∑𝑌 ∑ 𝑋 294 57
𝑎= −𝑏 = − 1.547 477 745 = 29.399 109 79 ≈ 29.40
𝑛 𝑛 7 7
𝑌𝑝 = 𝑎 + 𝑏𝑋 = 29.40 + 1.55𝑋

For each additional $1000 of advertising expenditures, the sales will increase
approximately 1.55 ($1000). For an advertising expenditure of $0, the sales will be
approximately 29.40 ($1000).

b) 𝑌𝑝 [8.0($1000)] = 29.399 109 79 + 1.547 477 745(8.0) = 41.778 931 75 ≈

41.78($1000)

2.
Family Size Amt. Spent on Food ($) X2 XY Y2
3 99 9 297 9 801
6 104 36 624 10 816
5 151 25 755 22 801
6 129 36 774 16 641
6 142 36 852 20 164
3 111 9 333 12 321
4 74 16 296 5 476
4 91 16 364 8 281
5 119 25 595 14 161
3 91 9 273 8 281
2 2
ΣX = 45 ΣY = 1111 ΣX = 217 ΣXY = 5163 ΣY = 128 743

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 10(5163)−45(1111)
a) 𝑏 = 𝑛 ∑ 𝑋 2 −(∑ 𝑋)2
= 10(217)−(45)2
= 11.275 862 07 ≈ 11.28
∑𝑌 ∑ 𝑋 1111 45
𝑎= −𝑏 = − 11.275 862 07 = 60.358 620 69 ≈ 60.36
𝑛 𝑛 10 10
𝑌𝑝 = 𝑎 + 𝑏𝑋 = 60.36 + 11.28𝑋

Page | 132
 The amount spent on food will increase approximately $11.28 for each additional family
member. It is not meaningful to interpret the vertical intercept because it would
represent the amount spent on food for a family of 0 members.

b) 𝑌𝑝 (4) = 60.358 620 69 + 11.275 862 07(4) = 105.462 206 9 ≈ $105.46

3.
Temperature Number of Beers X2 XY Y2
(˚C) Sold
27 20,533 729 554,391 421,604,089
20 1,439 400 28,780 2,070,721
26 13,829 676 359,554 191,241,241
26 21,286 676 553,436 453,093,796
31 30,985 961 960,535 960,070,225
23 17,187 529 395,301 295,392,969
30 30,240 900 907,200 914,457,600
33 37,596 1089 1,240,668 1,413,459,216
25 9,610 625 240,250 92,352,100
29 28,742 841 833,518 826,102,564
ΣX = 270 ΣY = 211,447 ΣX2 = 7426 ΣXY = 6,073,633 ΣY2 = 5,569,844,521

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 10(6,073,633)−270(211,447)
a) 𝑏 = 𝑛 ∑ 𝑋 2 −(∑ 𝑋)2
= 10(7426)−(270)2
= 2,680.617 647 ≈ 2,680.6
∑𝑌 ∑ 𝑋 211,447 270
𝑎= −𝑏 = − 2,680.617 647 = −51,231.976 47 ≈ −51,232.0
𝑛 𝑛 10 10
𝑌𝑝 = 𝑎 + 𝑏𝑋 = −51,232.0 + 2,680.6𝑋

For each 1˚C increase in temperature, the number of beers sold will increase by
approximately 2,680.6 beers. For a temperature of 0˚C, the numbers of beers sold will
be -51,232.0. Although a temperature of 0˚C is possible, the lowest temperature
observed was 20˚C and the lowest amount that can be sold is 0 beers.

b) 𝑌𝑝 (24˚𝐶) = −51,231.976 47 + 2,680.617 647(24) = 13,102.847 06 ≈

13,102.8 𝑏𝑒𝑒𝑟𝑠

Page | 133
4.
Weekly Usage Annual Maintenance X2 XY Y2
(hours) Expense ($1000)
13 1.70 169 22.10 2.8900
10 2.20 100 22.00 4.8400
20 3.00 400 60.00 9.0000
28 3.70 784 10.36 13.6900
32 4.70 1024 150.40 22.0900
17 3.05 289 51.85 9.3025
24 3.25 576 78.00 10.5625
31 3.90 961 120.90 15.2100
40 5.15 1600 206.00 26.5225
38 4.00 1444 152.00 16.0000
2 2
ΣX = 253 ΣY = 34.65 ΣX = 7347 ΣXY = 966.85 ΣY = 130.1075

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 10(966.85)−253(34.65)
a) 𝑏 = 𝑛 ∑ 𝑋 2 −(∑ 𝑋)2
= 10(7347)−(253)2
= 0.095 344 043 ≈ 0.095
∑𝑌 ∑ 𝑋 34.65 253
𝑎= −𝑏 = − 0.095 344 043 = 1.052 795 688 ≈ 1.053
𝑛 𝑛 10 10
𝑌𝑝 = 𝑎 + 𝑏𝑋 = 1.053 + 0.095𝑋

For each additional hour of weekly usage, the annual maintenance expense increases
approximately 0.095 ($1000). For a weekly usage of 0 hours, the annual maintenance
expense will be approximately 1.053 ($1000).

b) 𝑌𝑝 (25) = 1.052 795 688 + 0.095 344 043(25) = 3.436 396 787 ≈ 3.436 ($1000)

5.
Number of Sales ($1000) X2 XY Y2
Competitors
Within 1 Mile
1 3.6 1 3.6 12.96
1 3.3 1 3.3 10.89
2 3.1 4 6.2 9.61
3 2.9 9 8.7 8.41
3 2.7 9 8.1 7.29
4 2.5 16 10.0 6.25
5 2.3 25 11.5 5.29
5 2.0 25 10.0 4.00
2 2
ΣX = 24 ΣY = 22.4 ΣX = 90 ΣXY = 61.4 ΣY = 64.7

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 8(61.4)−24(22.4)
a) 𝑏 = = = −0.322 222 222 ≈ −0.32
𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 8(90)−(24)2
∑𝑌 ∑ 𝑋 22.4 24
𝑎= −𝑏 = − (−0.322 222 222) = 3.766 666 667 ≈ 3.77
𝑛 𝑛 8 8
𝑌𝑝 = 𝑎 + 𝑏𝑋 = 3.77 − 0.32𝑋

Page | 134
 For each additional competitor, the sales will decrease approximately 0.32 ($1000). If
there are no competitors within 1 mile, the sales will be approximately 3.77 ($1000).

c) 𝑌𝑝 (3) = 3.766 666 667 − 0.322 222 222(3) = 2.8 ≈ 2.80 ($1000)

Page | 135
Lesson 49 – Correlation Analysis
1.

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
a) 𝑟 =
√𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 √𝑛 ∑ 𝑌 2 −(∑ 𝑌)2
7(2841) − 57(294)
𝑟=
√7(753) − (57)2 √7(13 350) − (294)2
𝑟 = 0.830 868 141 ≈ 0.83
There is a very strong positive correlation between the advertising expenditures and
sales.

b) r2 = (0.830 868 141)2 = 0.690 341 868

The variation in advertising expenditures explains approximately 69% of the variation in
sales. Approximately 31% of the variation may be attributed to other factors.

2.
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
a)
√𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 √𝑛 ∑ 𝑌 2 −(∑ 𝑌)2
10(5163) − 45(1111)
𝑟=
√10(217) − (45)2 √10(128 743) − (1111)2
𝑟 = 0.589 182 303 ≈ 0.59
There is a moderate correlation between family size and amount spent on food.

b) r2 = (0.589 182 303)2 = 0.347 135 786

The variation in family size explains approximately 35% of the variation in amount spent
on food per week. Approximately 65% of the variation may be attributed to other
factors.

3.
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
a)
√𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 √𝑛 ∑ 𝑌 2 −(∑ 𝑌)2
10(6,073,633) − 270(211,447)
𝑟=
√10(7426) − (270)2 √10(5,569,844,521) − (211,447)2
𝑟 = 0.943 046 09 ≈ 0.94
There is an extremely strong positive correlation between the temperature and number
of beers sold.

b) r2 = (0.943 046 09)2 = 0.889 335 928

The variation in temperature explains approximately 89% of the variation in number of
beers sold. Approximately 11% of the variation may be attributed to other factors.

Page | 136
4.
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
a)
√𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 √𝑛 ∑ 𝑌 2 −(∑ 𝑌)2
10(966.85) − 253(34.65)
𝑟=
√10(7347) − (253)2 √10(130.1075) − (34.65)2
𝑟 = 0.925 298 194 ≈ 0.93
There is an extremely strong positive correlation between the weekly usage and annual
maintenance expense.

b) r2 = (0.925 298 194)2 = 0.856 176 748

The variation in weekly usage explains approximately 86% of the variation in annual
maintenance expense. Approximately 14% of the variation may be attributed to other
factors.

5.
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
a)
√𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 √𝑛 ∑ 𝑌 2 −(∑ 𝑌)2
8(61.4) − 24(22.4)
𝑟=
√8(90) − (24)2 √8(64.7) − (22.4)2
𝑟 = −0.971 536 554 ≈ −0.97
There is an extremely strong negative correlation between the number of competitors
within 1 mile and sales.

b) r2 = (-0.971 536 554)2 = 0.943 883 277

The variation in number of competitors within 1 mile explains approximately 94% of the
variation in sales. Approximately 6% of the variation may be attributed to other factors.

Page | 137
Cumulative Review
Descriptive Statistics
1.
Amount Spent on Groceries ($) X2
47.63 2 268.616 9
51.70 2 672.890 0
58.49 3 421. 080 1
60.47 3 656. 620 9
64.15 4 115. 222 5
73.25 5 365.562 5
81.14 6 583.699 6
83.22 6 925.568 4
ΣX = 520.05 ΣX2 = 35 009.260 9

∑𝑋 520.05
a) 𝑋̅ = 𝑛 = 8 = 65.006 25 ≈ $65.01
b) 𝑃𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.5(𝑛 + 1) = 0.5(8 + 1) = 4.5
𝑋4 + 𝑋5 60.47 + 64.15
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝑋4.5 = = = 62.31 ≈ $62.31
2 2
(∑ 𝑋)2 520.052
∑ 𝑋2− 35 009.260 9−
2
c) 𝑠 = 𝑛−1
𝑛
= 7
8
= 171.822 941 1 ≈ 171.82 ($)2

(∑ 𝑋)2 520.052
∑ 𝑋2− 35 009.260 9−
d) 𝑠 = √ 𝑛−1
𝑛
=√ 7
8
= 13.108 125 ≈ $13.11

𝑠 13.108 125
e) 𝐶. 𝑉. = ∙ 100 = ∙ 100 = 20.164 407 27 ≈ 20.2%
𝑋̅ 65.006 25

3(𝑋̅−𝑀𝑒𝑑𝑖𝑎𝑛) 3(65.006 25−62.31)

f) 𝑆𝑘 = 𝑠
= 13.108 125
= 0.617 079 101 ≈ 0.62

g) 𝑃𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 0.7(𝑛 + 1) = 0.7(8 + 1) = 6.3

𝐷7 = 𝑋6.3 = 𝑋6 + 0.3(𝑋7 − 𝑋6 ) = 73.25 + 0.3(81.14 − 73.25) = 75.617 ≈ $75.62

2.
a) Range = X50 – X1 = 89 – 35 = 54 years

log n log 50
N=1+ =1+ = 6.64
log 2 log 2

R 54
C= = = 8.13
N 6.64

Use C = 10 years/class starting at 30 years.

Page | 138
 Forbes’ Top 50 Wealthiest People
Ages Midpoint f <cf fX fX2
30 – 40 35 2 2 70 2 450
40 – 50 45 6 8 270 12 150
50 – 60 55 10 18 550 30 250
60 – 70 65 13 31 845 54 925
70 – 80 75 8 39 600 45 000
80 – 90 85 11 50 935 79 475
2
Σf = 50 ΣfX = 3270 ΣfX = 224 250

∑ fX 3270
b) μ = ∑f
= 50
= 65.4 ≈ 65.4 years

Position = 0.5 ∑ f = 0.5(50) = 25

0.5 ∑ f − Cfi−1 25 − 18
Median = L + [ ] C = 60 + [ ] 10 = 65.384 615 38 ≈ 65.4 years
fi 13

Mode = 65 ≈ 65.0 years

∑ fX2 ∑ fX 2 224 250 3270 2

c) σ = √ ∑f
− [ ∑f ] = √ 50
− [ 50
] = 14.416 657 03 ≈ 14.4 years

d)

The Top 50 Wealthiest People in the World

14
12
10
8
f
6
4
2
0

Ages (years)

e) The shape of the distribution is bimodal.

Page | 139
3.
a) Range = X45 – X1 = 97 – 31 = 66%

log n log 45
N=1+ =1+ = 6.49
log 2 log 2

R 66
C= = = 10.17
N 6.49

Use C = 10%/class starting at 30%.

Final Grades
Grades Midpoint f <cf fX fX2
30 – 40 35 2 2 70 2 450
40 – 50 45 3 5 135 6 075
50 – 60 55 5 10 275 15 125
60 – 70 65 10 20 650 42 250
70 – 80 75 13 33 975 73 125
80 – 90 85 8 41 680 57 800
90 – 100 95 4 45 380 36 100
2
Σf = 45 ΣfX = 3165 ΣfX = 232 925

∑ fX 3165
b) μ = ∑f
= 45
= 70. 3̇ ≈ 70.3%

Position = 0.5 ∑ f = 0.5(45) = 22.5

0.5 ∑ f − Cfi−1 22.5 − 20

Median = L + [ ] C = 70 + [ ] 10 = 71.923 076 92 ≈ 71.9%
fi 13

Mode = 75 ≈ 75.0%

∑ fX2 ∑ fX 2 232 925 3165 2

c) σ = √ ∑f
−[∑ ] =√ −[ ] = 15.143 755 59 ≈ 15.1%
f 45 45

d)

Page | 140
 Final Grades in Introductory Statistics
14
12
10
8
f
6
4
2
0

Grade (%)

3(μ−Median) 3(70.3−71.923̇ 076 92)

e) Sk = σ
= 15.143 755 59
= −0.31

The distribution is approximately symmetrical with a slight negative skew.

4. a)

Highway Fuel Economy Ratings

X (L/100 km) f <cf fX fX2
7 2 2 14 98
8 5 7 40 320
9 8 15 72 648
10 6 21 60 600
11 5 26 55 605
12 2 28 24 288
13 1 29 13 169
14 1 30 14 196
Σf = 30 ΣfX = 292 ΣfX2 = 2924

∑ fX 292 L
X = ∑ f = 30 = 9.73̇ ≈ 9.7
b) ̅ 100 km

Position = 0.5 (∑ f + 1) = 0.5(30 + 1) = 15.5

X15 + X16 9 + 10 L
Median = X15.5 = = = 9.5 ≈ 9.5
2 2 100 km
L
Mode = 9 ≈ 9.0
100 km

Page | 141
 (∑ fX)2 2922
∑ fX2 − 2924− L
c) s = √ ∑ f−1
∑f
=√ 29
30
= 1.680 175 141 ≈ 1.7 100 km

d)

Highway Fuel Economy Ratings

9
8
7
6
5
f
4
3
2
1
0
6 7 8 9 10 11 12 13 14 15
Fuel Economy (L/100 km)

̅ −Median)
3(X 3(9.73̇−9.5)
e) Sk = s
= 1.680 175 141 = 0.42

The distribution is approximately symmetrical with a slight positive skew.

5.

Salary ($/month) Number of Employees fX fX2 <cf

1500 2 3000 4,500,000 2
1750 5 8750 15,312,500 7
2000 3 6000 12,000,000 10
2500 2 5000 12,500,000 12
3875 1 3875 15,015,625 13
2
Σf = 13 ΣfX = 26,625 ΣfX = 59,328,125

∑ fX 26,625
a) μ = ∑f
= 13
= 2048.076 923 ≈ $2048.08/month
∑ fX2 ∑ fX 2 59,328,125 26,625 2
b) σ = √ ∑f
− [ ∑f ] = √ 13
− [ 13 ] = 607.521 884 6 ≈ $607.52/month
c) Position = 0.5(∑ f + 1) = 0.5(13 + 1) = 7
Median = X 7 = 1750 ≈ $1750.00/month
d) Position = 0.25(∑ f + 1) = 0.25(13 + 1) = 3.5

Page | 142
 X 3 + X 4 1750 + 1750
Q1 = X 3.5 = = = 1750 ≈ $1750.00/month
2 2
Position = 0.75 (∑ f + 1) = 0.75(13 + 1) = 10.5
X10 + X11 2000 + 2500 $2250.00
Q 3 = X10.5 = = = 2250 ≈
2 2 month
IQR = Q 3 − Q1 = 2250 − 1750 = 500 ≈ $500.00/month

6.

Test Score (%) Length of Test (hours) wX

65 1 65
83 0.5 41.5
77 2 154
Σw = 3.5 ΣwX = 260.5

∑ 𝑤𝑋 260.5
𝑋̅𝑤 = = = 74.428 571 ≈ 74.4%
∑𝑤 3.5

7.

Time (days) Number of Letters X fX fX2 <cf

5 – 10 8 7.5 60.0 450.00 8
10 – 15 11 12.5 137.5 1718.75 19
15 – 20 4 17.5 70.0 1225.00 23
20 – 25 1 22.5 22.5 506.25 24
25 – 30 1 27.5 27.5 756.25 25
Σf = 25 ΣfX = 317.5 ΣfX2 = 4656.25

̅ = ∑ fX = 317.5 = 12.7 ≈ 12.7 days

a) X ∑ f 25

(∑ fX)2 317.52
∑ fX2 − 4656.25−
b) s√ =√
∑f 25
∑ f−1 24
= 5.099 019 514 ≈ 5.1 days

c) Position = 0.5 ∑ f = 0.5(25) = 12.5

0.5 ∑ f − Cfi−1 12.5 − 8
Median = L + [ ] C = 10 + [ ] 5 = 12.045 ≈ 12.0 days
fi 11

8. G. M. = [ 𝑛√𝑋1 𝑋2 𝑋3 𝑋4 − 1]100

4
𝐺. 𝑀. = [ √(1 − 0.3)(1 − 0.25)(1 − 0.15)(1 − 0.1) − 1] 100

𝐺. 𝑀. = −20.392 280 2 ≈ 20.39% decrease

Page | 143
 𝑋−𝜇 2.44−2.60
9. a) 𝑍 = 𝜎
= 0.08
= −2.00

𝑋−𝜇 2.76−2.60
b) 𝑍 = = = 2.00
𝜎 0.08
c) ~95% according to the empirical rule.

10. a) P[106.0 min. < 𝑋 < 117.2 𝑚𝑖𝑛. ]

106.0 − 111.6 𝑋 − 𝜇 117.2 − 111.6

= 𝑃[ < < ]
2.8 𝜎 2.8

= 𝑃[−2.00 < 𝑍 < 2.00]

= at least 95% according to the empirical rule.

b) P[103.2 min. < 𝑋 < 120.0 𝑚𝑖𝑛. ]

103.2 − 111.6 𝑋 − 𝜇 120.0 − 111.6

= 𝑃[ < < ]
2.8 𝜎 2.8

= 𝑃[−3.00 < 𝑍 < 3.00]

= at least 99.7% according to the empirical rule.

Probability
11.

a) P(−A) = 1 − P(A) = 1 − 0.26 = 0.74

b) P(A or B) = P(A) + P(B) = 0.26 + 0.45 = 0.71

c) P(A and − B) = P(A) = 0.26 since A and B are mutually exclusive.

d) P(−A and − B) = 1 − P(A or B) = 1 − 0.71 = 0.29

12.

a) NS is the event a student is a non-smoker. F is the event a student is a female.

NS
F

Page | 144
 b) P(F or NS) = P(F) + P(NS) − P(F and NS) = 0.67 + 0.54 − 0.25 = 0.96
P(F and NS) 0.25 25
c) P(F|NS) = P(NS)
= 0.67 = 67 = 0.373 134 328 ≈ 0.373

13.
13 1
a) P(Spade) = =
52 4

12 3
b) P(Face Card) = 52 = 13

3
c) P(Face Card and Spade) = 52

d) P(Face Card or Spade) = P(Face Card) + P(Spade) − P(Face Card and Spade)

12 13 3 22 11
P(Face Card or Spade) = + − = =
52 52 52 52 26

14.

a)

Dealer A Dealer B Total

Satisfied (S) 0.65(0.72) = 0.468 0.35(0.57) = 0.1995 0.6675
Not Satisfied (-S) 0.182 0.1505 0.3325
Total 0.65 0.35 1.00

P(B and−S) 0.1505

b) P(B|−S) = = = 0.452 631 578 ≈ 0.453
P(−S) 0.3325

15.
338
a) P(Social Media) = 530 = 0.637 735 849 ≈ 0.638

140
b) P(Ages 45 − 54) = 530 = 0.264 150 943 ≈ 0.264

89
c) P(Ages 35 − 44 and Social Media) = 530 = 0.167 924 528 ≈ 0.168

d) P(Ages 35 − 44 or Social Media) = P(Ages 35 − 44) + P(Social Media) −

125 338 89 374
P(Ages 35 − 44 and Social Media) = 530 + 530 − 530 = 530 = 0.705 660 377 ≈ 0.706

16. The events in this problem are mutually exclusive.

Page | 145
 Bicycle Make Probability
Bianshe 0.17
Cannonhill 0.22
Fishim 0.03
Giante 0.29
Trec 0.21
HT 0.08
ΣP(X) = 1.00

a) P(Cannonhill or Trec) = P(Cannonhill) + P(Trec) = 0.22 + 0.21 = 0.43

b) P(Bianshe or Giante or Trec) = P(Bianshe) + P(Giante) + P(Trec) = 0.17 + 0.29 +

0.21 = 0.67

c) P(Fishim or Trec) = P(Fishim) + P(Trec) = 0.03 + 0.21 = 0.24

d) P(Cannonhill or Giante or HT) = P(Cannonhill) + P(Giante) + P(HT) = 0.22 +

0.29 + 0.08 = 0.59

17. The events in this problem are mutually exclusive. Let X = the number of complaints.

Number of Complaints Probability

0 0.01
1 0.03
2 0.07
3 0.15
4 0.19
5 0.18
6 0.14
7 0.12
8 0.09
9 0.02
ΣP(X) = 1.00

a) P(X ≤ 4) = 0.01 + 0.03 + 0.07 + 0.15 + 0.19 = 0.45

b) P(X ≥ 6) = 0.14 + 0.12 + 0.09 + 0.02 = 0.37

c) P(5 ≤ X ≤ 8) = 0.18 + 0.14 + 0.12 + 0.09 = 0.53

18.
115
a) P(Female) = 197 = 0.583 756 345 ≈ 0.584

Page | 146
 21
b) P(1 Ticket) = 197 = 0.106 598 984 ≈ 0.107

14
c) P(Female and 1 Ticket) = 197 = 0.071 428 571 ≈ 0.071

115
d) P(Female or 1 Ticket) = P(Female) + P(1 Ticket) − P(Female and 1 Ticket) = 197 +
21 14 122
197
− 197 = 197 = 0.619 289 34 ≈ 0.619

19.

a) P(A or B) = P(A) + P(B) − P(A and B) = 0.35 + 0.40 − 0.20 = 0.55

b) P(−A and B) = P(B) − P(A and B) = 0.40 − 0.20 = 0.20

c) P(−A or B) = 1 − P(A and − B) = 1 − [P(A) − P(A and B)] = 1 − [0.35 − 0.20] =

0.85

d) A and B are not independent since …

P(A) ∙ P(B) = (0.35) ∙ (0.40) = 0.14 ≠ P(A and B).

20.

TYPE OF FAILURE
System Hardware (H) Software (S) Power (P) No Failure Total
Shutdown
Yes 0.73(0.01) = 0.0073 0.12(0.05) = 0.006 0.88(0.02) = 0.0176 0 0.0309
No 0.27(0.01) = 0.0027 0.88(0.05) = 0.044 0.12(0.02) = 0.0024 0.92 0.9691
Total 0.01 0.05 0.02 0.92 1.00

*Note that we are only considering these 3 types of failures. We assume then that the “No”
outcome is the complement of the “Yes” outcome.

P(H and Yes) 0.0073

P(H|Yes) = = = 0.236 245 954 ≈ 0.236 2
P(Yes) 0.0309
P(S and Yes) 0.006
P(S|Yes) = = = 0.194 174 757 ≈ 0.194 2
P(Yes) 0.0309
P(P and Yes) 0.0176
P(P|Yes) = = = 0.569 579 288 ≈ 0.569 6
P(Yes) 0.0309

Page | 147
21. X = the number of students who are bussed; n = 10; p = 0.2.

a) P(X = 3) = 10C3 ∙ (0.2)3 (0.8)7 = 0.201 326 592 ≈ 0.201 3

b) P(X ≥ 2) = 1 − P(𝑋 < 2) = 1 − [0.107 + 0.268] = 0.625 (from the tables)

22. X = the number of malfunctioning machines observed.

a) μ = np = 200(0.01) = 2 ≈ 2.0 malfunctioning machines

μX ∙e−μ 23 ∙e−2
b) P(X = 3) = X!
= 3!
= 0.180 447 044 ≈ 0.1804

23. X = the number of males chosen for the committee; N = 22; n = 5; S = 10.
10C2∙12C3
a) P(X = 2) = = 0.375 939 849 ≈ 0.375 9
22C5
10C0∙12C5
b) P(X ≥ 1) = 1 − P(X = 0) = 1 − 22C5
= 0.969 924 812 ≈ 0.9699

24.

a)

53.75 60.00 66.25 72.50 78.75 85.00 91.25

Annual Sales ($1000)

70,000 − 72,500 X − μ 75,000 − 72,500

P($70,000 < 𝑋 < $75,000) = P ( < < )
6250 σ 6250
= P(−0.40 < 𝑍 < 0.40) = 0.1554 + 0.1554 = 0.3108

b)

Page | 148
 53.75 60.00 66.25 72.50 78.75 85.00 91.25
Annual Sales ($1000)

X − μ 82,000 − 72,500
P(X > $82,000) = P ( > ) = P(Z > 1.52) = 0.5 − 0.4357
σ 6250
= 0.0643

c)

53.75 60.00 66.25 72.50 78.75 85.00 91.25

Annual Sales ($1000)

75,000 − 72,500 X − μ 85,000 − 72,500

P($75,000 < 𝑋 < $85,000) = P ( < < )
6250 σ 6250
= P(0.40 < 𝑍 < 2.00) = 0.4772 − 0.1554 = 0.3218

Inferential Statistics
25. See page 206 for the answer to this question.

𝑋−𝜇 70−69
26. a) 𝑃(𝑥 > 70 𝑖𝑛𝑐ℎ𝑒𝑠) = 𝑃 ( > ) = 𝑃(𝑍 > 0.25) = 0.5 − 0.0987 = 0.4013
𝜎 4

b) Since n ≥ 30, the sampling distribution is normal. One could also conclude that the
shape of the sampling distribution is normal because the population distribution itself is
normal.
c) The mean of the sampling distribution is 69 inches.
𝜎 4
d) The standard error of the mean is 𝜎𝑥̅ = = = 0. 6̇ 𝑖𝑛𝑐ℎ. The FCF does not need to
√𝑛 √36
𝑛 36
be applied because 𝑁
= 1200
= 0.03 < 0.05.

Page | 149
 𝑋−𝜇 ̅
70−69
e) 𝑃(𝑋̅ > 70 𝑖𝑛𝑐ℎ𝑒𝑠) = 𝑃 ( 𝜎 > 0.6̇ ) = 𝑃(𝑍 > 1.50) = 0.5 − 0.4332 = 0.0668
̅
𝑥

27. a) Although n < 30, the sampling distribution is normal because the population distribution
is normally distributed.
𝑠 8
b) The standard error of the mean is 𝜎𝑥̅ = = = 2 ≈ 2.0 seconds.
√𝑛 √16

28. a) Since n ≥ 30, the sampling distribution is normal. It does not matter what the shape of
the population distribution is because the sample size is large.
𝜎 40 000
b) The standard error of the mean is 𝜎𝑥̅ = = = 5656.854 249 ≈ $5700.
√𝑛 √50

29. Since n ≥ 30, the sampling distribution is normal. The sample mean is 680 hours and the
𝜎 120
standard error of the mean is 𝜎𝑥̅ = = = 10 ≈ 10 ℎ𝑜𝑢𝑟𝑠.
√𝑛 √144

𝑋̅ − 𝜇 680 − 700
𝑃(𝑋̅ < 680 ℎ𝑜𝑢𝑟𝑠) = 𝑃 ( < ) = 𝑃(𝑍 < −2.00) = 0.5 − 0.4772
𝜎𝑥̅ 10
= 0.0228

30. Since n ≥ 30, the sampling distribution is normal. The t distribution should be used because
the population standard deviation is unknown. The sample mean is 60 000 km and the
𝑠 𝑁−𝑛 3300 640−100
standard error of the mean is 𝑠𝑥̅ = √ = √ = 303.361 449 5 𝑘𝑚 ≈
√𝑛 𝑁−1 √100 640−1
300 𝑘𝑚. Note that the finite correction factor must be applied with N = 160(4) = 640 tires.

𝐸 = 𝑡𝑠𝑥̅ = 1.984(303.361 449 5) = 601.869 115 7 𝑘𝑚 ≈ 600 𝑘𝑚

𝑃[(𝑋̅ − 𝐸) < 𝜇 < (𝑋̅ + 𝐸)] = 0.95

𝑃[(60 000 − 601.869 115 7) < 𝜇 < (60 000 + 601.869 115 7)] = 0.95

𝑃[59,398.130 88 𝑘𝑚 < 𝜇 < 60,601.869 12 𝑘𝑚] = 0.95

We are 95% confident that true mean mileage that the utility can expect from its tires will
fall between 59,400 and 60,600 km.

𝑍𝜎 2 2.575(6) 2
31. 𝑛=[ ] =[ ] =59.675 625
𝐸 2

The manufacturer should take a sample of 60 batteries.

Page | 150
 𝑋 84
32. The point estimate for this discrete random variable is 𝑝̅ = 𝑛 = 120 = 0.7. Since n𝑝̅ ≥ 0.05,
120(0.7) = 84 and n(1 – ̅𝑝) ≥ 0.05, 120(0.3) = 36, the sampling distribution is normal. The
𝑝̅ (1−𝑝̅ ) 0.7(0.3)
standard error of the proportion is 𝜎𝑝̅ = √ =√ = 0.041 833 001 ≈ 0.042.
𝑛 120
The FCF is not applied since N is unknown.

𝐸 = 𝑍𝜎𝑝̅ = 1.96(0.041 833 001) = 0.081 992 682 ≈ 0.082

𝑃[(𝑝̅ − 𝐸) < 𝑝 < (𝑝̅ + 𝐸)] = 0.95

𝑃[(0.7 − 0.081 992 682) < 𝑝 < (0.7 + 0.081 992 682)] = 0.95

𝑃[0.618 007 317 < 𝑝 < 0.781 992 682] = 0.95

We are 95% confident that the true proportion of shoppers at the Town and Country Mall
making at least one purchase will fall between 0.618 and 0.782.

𝑍 2 1 2 2.33 2
33. a) 𝑛 = 𝑝(1 − 𝑝) [𝐸 ] = 3 (3) [0.03] = 1340.469 136

Therefore, SGI should take a sample of 1341 first-year drivers.

𝑍 2 1 1 2.33 2
b) 𝑛 = 𝑝(1 − 𝑝) [𝐸 ] = 2 (2) [0.03] = 1508.027 778

Therefore, SGI should take a sample of 1509 first-year drivers.

34. The population distribution is normally distributed so the sampling distribution is normal too
regardless of the sample size. We will have to use the Student t distribution. The sample
statistics are 𝑋̅ = 15.85 ounces and 𝑠 = 0.242 899 156 ≈ 0.24 ounces. The standard error
𝑠 0.242 899 156
of the mean is 𝑠𝑥̅ = = = 0.099 163 165 ≈ 0.10 ounces.
√𝑛 √6

𝐸 = 𝑡𝑠𝑥̅ = 2.015(0.099 163 165) = 0.199 813 777 ≈ 0.20 𝑜𝑢𝑛𝑐𝑒𝑠

𝑃[(𝑥̅ − 𝐸) < 𝜇 < (𝑥̅ + 𝐸)] = 0.90

𝑃[(15.85 − 0.199 813 777) < 𝜇 < (15.85 + 0.199 813 777)] = 0.90

𝑃[15.650 186 22 𝑜𝑢𝑛𝑐𝑒𝑠 < 𝜇 < 16.049 813 78 𝑜𝑢𝑛𝑐𝑒𝑠] = 0.90

We are 90% confident that the true mean weight of a package of sunflower seeds from the
current shipment will be between 15.65 and 16.05 ounces.

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35. a) 𝐻0 : 𝜇 = 35 𝑝𝑝𝑚 and 𝐻1 : 𝜇 < 35 𝑝𝑝𝑚

b) 𝐻0 : 𝜇 = 5 𝑘𝑚 and 𝐻1 : 𝜇 > 5 𝑘𝑚

c) 𝐻0 : 𝜇 = 454 𝑔 and 𝐻1 : 𝜇 ≠ 454 𝑔

36. Step 1: Formulate the null and alternative hypothesis.

H0 : μ = 27.50 mm H1 : μ ≠ 27.50 mm
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
Since n ≥ 30, the sampling distribution is normal. The population standard deviation is
known so the Z distribution can be used. The mean of the sampling distribution is 27.50 mm
𝜎 0.87
and the standard error of the mean is 𝜎𝑥̅ = = = 0.158 839 541 ≈ 0.16 𝑚𝑚.
√𝑛 √30

Step 4: Establish a decision rule.

The decision rule is two-tailed. The critical values are Z = ±1.96. The decision rule could be
stated as we will not reject H0 if -1.96 ≤ Z ≤ 1.96, otherwise reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋̅−𝜇
The sample evidence indicates a mean of 27.63 cm. The test statistic is 𝑍 = 𝜎𝑋
=
̅
27.63−27.50
0.158 839 541
= 0.82. Since 0.82 < 1.96, we do not reject H0. The sample evidence indicates
that the mean length of the produced parts is not significantly different from 27.50 mm at
the 5% level of significance. The production process is not out of control.

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37. Step 1: Formulate the null and alternative hypothesis.
H0 : μ = 4.9% H1 : μ < 4.9%
Step 2: State the level of significance, α.
α = 0.01
Step 3: Determine the test distribution to use.
The population distribution is normally distributed, so the sampling distribution is normal
too regardless of the sample size. Since the population standard deviation is unknown, we
will have to use the t distribution. The sample statistics are 𝑥̅ = 3.441 6̇ ≈ 3.4% and 𝑠 =
𝑠 0.652 907 251
0.652 907 251 ≈ 0.7%. The standard error of the mean is 𝑠𝑥̅ = = =
√𝑛 √12
0.188 478 088 ≈ 0.2%.
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical value is t = -2.718. The decision rule
could be stated as we will reject H0 if t < -2.718, otherwise do not reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

𝑋̅−𝜇 ̅−4.9
3.441 6
The test statistic is 𝑡 = 𝜎𝑋
= 0.188 478 088 = −7.737. Since -7.737 < -2.718, we reject H0.
̅

The sample evidence indicates that the mean carbon monoxide level is significantly less than
4.9% at the 1% level of significance.

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38. Step 1: Formulate the null and alternative hypothesis.
H0 : p = 0.005 H1 : p > 0.005
Step 2: State the level of significance, α.
α = 0.02
Step 3: Determine the test distribution to use.
The point estimate for this discrete random variable is p = 0.005. Since np ≥ 0.05,
1000(0.005) = 5 and n(1 – p) ≥ 0.05, 1000(0.995) = 995, the sampling distribution is normal.
𝑝̅ (1−𝑝̅)
The Z distribution may be used. The standard error of the proportion is 𝜎𝑝̅ = √ 𝑛
=

0.005(0.995)
√ = 0.002 230 47 ≈ 0.0022.
1000
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 2.05. The decision rule
could be stated as we will reject H0 if Z > 2.05, otherwise do not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑋 9 𝑝̅ −𝑝
The point estimate from the sample is 𝑝̅ = 𝑛 = 1000 = 0.009. The test statistic is 𝑍 = 𝜎𝑝
=
̅
0.009−0.005
0.002 230 47
= 1.79. Since 1.79 < 2.05, do not reject H0. The sample evidence indicates that
the mean proportion of defective parts is not significantly greater than 0.5% at the 2% level
of significance. The machine is operating in an acceptable manner.

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39. Step 1: Formulate the null and alternative hypothesis.
(D – Day shift; A – Afternoon shift)
H0 : μD = μA or H0 : μD − μA = 0
H1 : μD < μA or H1 : μD − μA < 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
Since nD and nA are both ≥ 30, the sampling distribution is normal. The population standard
deviations are known, so the Z distribution can be used. The mean of the sampling
𝜎 2 𝜎𝐴 2
distribution is 0 sales/week and the standard error of the mean is 𝜎𝑋̅𝐷 −𝑋̅𝐴 = √ 𝑛𝐷 + 𝑛𝐴
=
𝐷

212 282
√ + = 4.607 964 12 ≈ 4.6 𝑢𝑛𝑖𝑡𝑠.
54 60
Step 4: Establish a decision rule.
The decision rule is one-tailed (left tail). The critical values is Z = -1.645. The decision rule
could be stated as we will reject H0 if Z < -1.645, otherwise do not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

(𝑋̅𝐷 −𝑋̅𝐴 )−0 345−351
The test statistic is 𝑍 = 𝜎𝑋
= 4.607 964 12 = −1.30. Since -1.30 > -1.645, do not reject
̅ 𝐷 −𝑋
̅𝐴

H0. The sample evidence indicates that the number of units produced by afternoon shift is
not significantly greater than the number of units produced by the day shift at the 5% level
of significance.

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40. Step 1: Formulate the null and alternative hypothesis.
(1 – Sydney to Melbourne; 2 – Melbourne to Sydney)
𝐻0 : 𝜇1 = 𝜇2 or 𝐻0 : 𝜇1 − 𝜇2 = 0
𝐻1 : 𝜇1 > 𝜇2 or 𝐻1 : 𝜇1 − 𝜇2 > 0
Step 2: State the level of significance, α.
α = 0.05
Step 3: Determine the test distribution to use.
Since the populations distributions are normal, the sampling distribution is normal. Since
the population standard deviations are unknown, the Student t distribution must be used.
The mean of the sampling distribution is 0 minutes and the standard error of the mean is
(𝑛1 −1)𝑠1 2 +(𝑛2 −1)𝑠2 2 1 1 9(225)+5(185) 1 1
𝑠𝑥̅1 −𝑥̅2 = √ [𝑛 + 𝑛 ] = √ [10 + 6] = 7.496 030 696 ≈
𝑛1 +𝑛2 −2 1 2 10+6−2
7.5 𝑚𝑖𝑛. Note that the variances were provided in the table.
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is t = 1.761 for 14 degrees of
freedom. The decision rule could be stated as we will reject H0 if t > 1.761, otherwise we
will not reject H0.

Reject

-4 -3 -2 -1 0 1 2 3 4
t

Step 5: Evaluate the evidence.

(𝑋̅1 −𝑋̅2 )−0 123−108
The test statistic is 𝑍 = 𝜎𝑋
= 7.496 030 696 = 2.001. Since 2.001 > 1.761, reject H0.
̅ 1 −𝑋
̅2

The sample evidence indicates that the mean flight time from Sydney to Melbourne is
significantly greater than the mean flight time from Melbourne to Sydney at the 5% level of
significance.

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41. Step 1: Formulate the null and alternative hypothesis.
(n – new campaign; c – current campaign)
H0 : pn = pc or H0 : pn − pc = 0
H1 : pn > pc or H1 : pn − pc > 0
Step 2: State the level of significance, α.
α = 0.10
Step 3: Determine the test distribution to use.

Since n𝑝̅ ≥ 5 and n(1 – 𝑝̅ ) ≥ 5 for both samples, the sampling distribution is normal. The Z
𝑥 +𝑥 124+35
distribution can be used. The pooled estimate is 𝑝̅𝑐 = 𝑛𝑛 +𝑛𝑐 = 400+100 = 0.318 where
𝑛 𝑐
𝑋𝑛 = 𝑛𝑝̅ = 400(0.31) = 124 and 𝑋𝑐 = 𝑛𝑝̅ = 100(0.35) = 35. The standard error of the
𝑝̅ (1−𝑝̅ ) 𝑝̅ (1−𝑝̅) 0.318(0.682) 0.318(0.682)
proportion is 𝑠𝑝̅𝑛 −𝑝̅𝑐 = √ + =√ + = 0.052 066 784 ≈
𝑛𝑛 𝑛𝑐 400 100
0.052.
Step 4: Establish a decision rule.
The decision rule is one-tailed (right tail). The critical value is Z = 1.28. The decision rule
could be stated as we will reject H0 if Z > 1.28, otherwise do not reject H0.

Reject

-3 -2 -1 0 1 2 3
Z

Step 5: Evaluate the evidence.

𝑝̅ −𝑝̅𝑐 0.35−0.31
The test statistic is 𝑍 = 𝑠 𝑛 = 0.052 066 784 = 0.77. Since 0.77 < 1.28, do not reject H0.
̅ 𝑛 −𝑝
𝑝 ̅𝑐

The sample evidence indicates that the proportion of viewers who find the new ad
campaign highly attractive is not significantly greater than the proportion of viewers who
find the current campaign highly attractive at the 10% level of significance.

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42.

Number of Bedrooms Selling Price ($1000) X2 XY Y2

3 200 9 600 40,000
3 210 9 630 44,100
2 205 4 410 42,025
4 220 16 880 48,400
2 180 4 360 32,400
3 205 9 615 42,025
2 210 4 420 44,100
3 185 9 555 34,225
1 205 1 205 42,025
2 175 4 350 30,625
2 170 4 340 28,900
1 195 1 195 38,025
ΣX = 28 ΣY = 2360 ΣX2 = 74 ΣXY = 5560 ΣY2 = 466,850

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 12(5560)−28(2360)
b) 𝑏 = = = 6.153 846 154 ≈ 6.2
𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 12(74)−(28)2
∑𝑌 ∑ 𝑋 2360 28
𝑎= −𝑏 = − 6.153 846 154 = 182.307 692 3 ≈ 182.3
𝑛 𝑛 12 12
𝑌𝑝 = 𝑎 + 𝑏𝑋 = 182.3 + 6.2𝑋

c) The selling price of a condominium increases ~$6200 for each increase of 1 bedroom. The
interpretation of the intercept is not relevant. It may be interpreted that the selling price of
a condominium with no bedrooms is ~182,300.

𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
d) 𝑟 =
√𝑛 ∑ 𝑋 2 −(∑ 𝑋)2 √𝑛 ∑ 𝑌 2 −(∑ 𝑌)2
12(5560) − 28(2360)
𝑟=
√12(74) − (28)2 √12(466 850) − (2360)2
𝑟 = 0.347 579 78 ≈ 0.35
There is a weak positive correlation between the number of bedrooms and the selling price
of a condominium.

e) r2 = (0.347 579 78)2 = 0.120 811 703

The variation in number of bedrooms in a condominium explains approximately 12% of the
variation in the selling price of a condominium. Approximately 88% of the variation may be
attributed to other factors.

f) Estimate the selling price for a condominium with 4 bedrooms.

𝑌𝑝 (𝑋 = 4) = 182.307 692 3 + 6.153 846 154(4) = 206.923 076 9 ≈ 206.9 ($1000)

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