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EPPD 2023

TAKE HOME EXAM

INSTRUCTION:

Answer ALL questions.

For a sample of eight apartment building in Bandar baru Bangi, the percentage
occupancy rates during a recent months were shown below:
50.0%, 79.1%, 61.3%, 43.9%, 68.1%, 70.0%, and 66.3%
For these sample data, determine:
i.
ii.
iii.

Show the following correlation relationship using an appropriate diagrams of variable


X and variable Y:
i.
ii.
iii.

The mean, Median, range and midrange


The mean absolute deviation
The standard deviation and variance

Strong positive correlation


Weak negative correlation
No correlation

A company uses 3 machines (Machine A, Machine B, and Machine C) to produce its


product. Recently a quality manager conduct a regular checking on the product
produced by these three machines and found that machine A produced 5% defect,
machine B produced 7% defect and machine C produced 2% defect products
respectively. Assume that machine A has a capacity to produce 50% of total
production while machine B is only able to produce 10%. Suppose that you choose
randomly one product from the production line:
i.
ii.
iii.

What is the probability that the product is produced by machine C


What is probability of getting product from machine A and in good condition
If it is know that the product is defect, what is the probability that the product
is from machine B

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Of employed Thais adults age 25 and above, 90.4% have completed high school,
while 34.0% have completed college. For H = completed high school, C =completed
college, and assuming that one must complete high school before completing college.
i.
ii.
iii.
iv.

It is known that construction total cost x to developed a low cost housing estate is
normally distributed with mean RM 850,000 and standard deviation RM 170,000.
The revenue R promised by the authority to the contractor is RM 1,000,000 upon the
completion of the development project. The contract is profitable if revenue exceed
total cost.
i.
ii.
iii.

What is the probability that the contract will be profitable for the contractor
What is the probability that the project will result in a loss to the contractor
Suppose the contractor has the opportunity to renegotiate the contract. What
value of R should the contractor strive for in order to have a 0.99 probability
of making a profit?

A firm has been appointed by Malaysian government to conduct an IQ test for


Malaysian below 25 years old. It is known for all test administered last year that the
distribution of scores was approximately normal with mean 75 and standard deviation
7.5
i.

ii.

Construct a contingency table to assist your calculation of the following


probabilities for and employed Thai adult
P (H )
P C/H )
P (H and C )

A particular employer requires job candidates to score at least 80 on the IQ


test. Approximately what percentage of the test scores during the past that
exceeded 80
What is the candidates minimum IQ score if the company wants to employ
top 7.5% candidate.

The average price of a gallon of regular unleaded gasoline in the U.S was reported to
be RM 2.34. Use this price as population mean and assume that the population
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EPPD 2023
standard deviation is RM 0.20. For 100 service stations randomly selected in a
sample:
i.
ii.
iii.

What is the probability that the mean price is above RM 2.40 of the
population mean
What is the probability that the mean price is below RM 2.30 of the
population mean
What is the probability that the mean price is within RM 0.03 of the
population mean

The Halal Food Co shows that 17% of household spend more than RM 100.00 per
week on his product. Assume that the population proportion is = 0.17 and the
simple random sample of 800 households will be selected from the population.
i.
ii.

What is the probability that the sample proportion will be below 15% of the
population proportion
What is the probability that the sample proportion will be within 0.02 of the
population proportion

A manufacturer of salad dressings uses machines to dispense liquid ingredients into


bottles that move along a filling line. The machine that dispenses dressings is working
properly when 8 ounces are dispensed. The standard deviation of the process is 0.15
ounces. Suppose that the average amount dispensed in a particular sample of 50
bottles is 7.952 ounces. Develop a 99% confidence interval around this sample mean.

10

In a survey of 600 senior business executives by Business Week magazine, 56%


indicated that they felt that even if merit and abilities are equal, people with MBAs
often get promoted faster than people without the degree. Prepare a 92% confidence
interval estimate for the population proportion.

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11

In opposing the establishment of a new bank in a community an existing bank stated that
the area to be served by the proposed bank contained 75 percent of its accounts. An
economic consulting firm randomly sampled the households to determine the sample
proportion, p, which had accounts at the existing bank. The sample size was 225. Find the
probability that p is:
i.

Less than 69 percent.

ii.

More than 78 percent.

iii.

Within 0.05 of the true proportion stated as 0.75.