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1. In the computing Industry the average age of professional employees tends to be younger than in many other business professions.

Suppose the average age of a professional employee by a particular computer firm is 28 with a standard deviation of 6 years. Suppose the data are not normally distributed but rather are amassed in the 20s and that few workers are over 40. Determine within what range of ages atleast 80% of the workers age falls would. 2. Pep Zone sells auto parts and supplies including popular multi-grade motor oil. When the stock of this oil drops to 20 gallons, a replenishment order is placed. The store manager is concerned that sales are being lost due to stockouts while waiting for a replenishment order. It has been determined that demand during replenishment lead-time is normally distributed with a mean of 15 gallons and a standard deviation of 6 gallons. A). what is the probability that demand during lead-time will exceed 20 gallons B). If the manager of Pep Zone wants the probability of a stockout during replenishment lead-time to be no more than .05, what should the reorder point be? 3.

. 4. Cond Nast Traveler publishes a Gold List of the top hotels all over the world. The Broad Moor Hotel in Colorado Springs contains 700 rooms and is on the 2004 Gold List (Cond Nast Traveler, January 2004). Suppose Broadmoors marketing group forecasts a mean demand of 670 rooms for the coming weekend. Assume that demand for the upcoming weekend is normally distributed with a standard deviation of 30. I. II. III. What is the probability all the hotels rooms will be rented? What is the probability 50 or more rooms will not be rented? Would you recommend the hotel consider offering a promotion to increase demand? What considerations would be important?

5. Annual sales, in millions of dollars, for 21 pharmaceutical companies follow:


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I. II.

Do the data contain any outliers? Johnson & Johnsons sales are the largest on the list at $14,138 million. Suppose a data entry error (a transposition) had been made and the sales had been entered as $41,138 million. Would the method of detecting outliers will identify this problem. And allow for the correction of data entry error

6. Public transportation and the automobile are two methods an employee can use to get to work each day. Samples of times recorded for each method are shown. Times are in minutes.

I. II.

Using an appropriate statistical method, find out which method of transportation should be preferred? Give reasons for the same Develop a box plot for each method. Does a comparison of the box plots support your Conclusion.

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