Question 1:

560,640+504,500+437,080+436,000+429,500+405,000+362,000+
335,000 + 330,000
(a) Mean =
10
4,144,220
= 10

= 414,422

429,500
Median =
405,000

= 417,250

The mean is 414,422 while the median is 417,250. The states prefer is Whiting, Indiana

as the mean and median result is most closely to the capacity of the state.

(b) Range = 560,640 – 330,000

= 230,640

Q1 = ¼ (10 + 1) = 2.75 ᴝ 3 So, Q1 = 344,500

Q3 = ¾ (10 + 1) = 8.25 ᴝ 8 So, Q3 = 437,080

Interquartile range = 437,080 – 344,500

= 92,580

The range is 230,640 while the interquartile range is 92,580.

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Range means the actual spread of the data. It does not measure the spread of the majority

of values in a data set. However, interquartile range is used to measure the spread and

indicates the dispersion of a data set.

(c) Variance:

1
(560,640²+ 504,500²+ 437,080²+ 436,000²+ 429,500²+ 405,000²+ 362,000²+
10
344,500²+ 335,000²+ 330,000²) – 414,422²
= 1
(1,769,316,886,000) – 171,745,594,084
10

= 5,186,094,516

Standard deviation = √ 5,186,094,516

= 72,014,54

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Question 2:

17(9) + 22(16) + 27(27) + 32(44) + 37(42) + 42(23) + 47(7) + 52(2)

(a) Mean =
170
5595
=
170

= 32.91

Modal ages of country music listeners: 30-under 35

1(194,025) – 1,083.07
(b) Variance =
170

= 1141.32 – 1083.07

= 58.25

Standard deviation = √ 58.25

= 7.63

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Question 3:

17.1+7.9+ 4.8+4.7 +4.6+ 4+ 2.9+2.7+2.7

A= - (0.1396)(
9

12.4 +7.5+6.8+8.7 +4.6+5.1+11.2+ 5.1+ 2.9

)
9

51.4 64.3
= – (0.1396) ( )
9 9

= 5.711 – 0.974

= 4.737

(64.3)( 51.4)
440.46−
9
B=
(64.3) 2
538.97−
9

440.46−367.22
=
538.97 – 14.29

73.24
=
524.68

= 0.1396

Substituting these values into the regression equation, we get

Y = 4.737 + 0.1396 x

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Correlation coefficient,

(64.3)(51.4)
440.46−
9
r=

√( 538.97−
64.32
9 )( 460.1−
51.4 2
9
)

440 .46−367.22
=
(8.918)(166.55)

73.24
= 1485.29

= 0.0493

This means there is strong positive linear relationship between the sales, y and the

production quantity x .

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Question 4:

(a)

I 2009 2308 I 2008 2351 I 2007 2397

= x 100 = x = x
I 1995 2073 I 1995 2073 I 1995 2073
= 111.34
100 100
= 113.41 = 115.63
I 2006 2467 I 2005 2483 I 2004 2529
= x 100 = x = x
I 1995 2073 I 1995 2073 I 1995 2073
= 119
100 100
= 119.78 = 122
I 2003 2520 I 2002 2499 I 2001 2463
= x 100 = x = x
I 1995 2073 I 1995 2073 I 1995 2073
= 121.56
100 100
= 120.55 = 118.81
I 2000 2508 I 1999 2456 I 1998 2313
= x 100 = x = x
I 1995 2073 I 1995 2073 I 1995 2073
= 120.98
100 100
= 118.48 = 111.58
I 1997 2349 I 1996 2290 I 1995 2073
= x 100 = x = x
I 1995 2073 I 1995 2073 I 1995 2073
= 113.31
100 100
= 110.47 = 100

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 (b) Laspeyres price index for 2009, base year 2006

2006 2009 2006 Pt q 0 P 0 q0

P0 Pt q0
2.75 3.21 12 38.52 33
0.85 0.98 47 46.06 39.95
1.33 1.40 20 28 26.6
Total 112.58 99.55
112.58
x 100 = 113.09
99.55

The price of items in 2009 has increased by 13.09% compared to 2006.

Paasche’s price index for 2008, base year 2006

P0 Pt qt Pt q t P 0 qt
2.75 3.10 9 27.9 24.75
0.85 0.95 61 57.95 51.85
1.33 1.36 25 34 33.25
Total 119.85 109.85
119.85
x 100 = 109.1
109.85

The price of items in 2008 has increased by 9.1% compared to 2006.

Question 5:

(a) P (a) = 0.56

P (a and b) = 0.36

P (a and not b) = 0.20 = 20%

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 P(a∧b) 0.36
(b) = = 0.6429 = 64.29%
P( a) 0.56

P(a∧b) 0.36
(c)
P( b)
= 0.90 = 0.4= 40%
(d) P (a or b) = P (b) + P(a) - (P(a and b) = 0.56+ 0.4-0.36 =0.6

(e) P (not a not b) = 1 – 0.6= 0.4=40%

(f) The chance on not using process improvement is 1 – P (b) = 1 – 0.4 = 0.6

P( a∧not b) 0.2
P(not b)
= 0.6
= 0.3333 = 33.33%

Coursework

Question 1: Explain in your own words the points to note when interpreting the

correlation coefficient.

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 There are certain points to note when examining the relationship between two

variables on the basis of sample data. Sometimes, a correlation that equals to zero or

close to zero does not imply that the two variables are unrelated. The two variables might

be related in a non-linear relationship.

Since both the Pearson’s, rand Spearman’s, p measure the linear relationship, the

value of coefficients can be close to zero when the relationship is non-linear.

Also, the existence of high correlation between two variables does not necessarily

explain why the relationship exists. Specifically, the large correlation coefficient does not

mean that one variable is the sole factor that causes the effect on the second variable and

vice versa.

Question 2: Find the mean deviation for the following data: 12, 6, 3, 7, 8, 10, 11.

Solution:

Mean =

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 7

Question 3: Interpret variance and standard deviation in your own words.

The variance and standard deviation (square root of variance) are the measures of the

average scatter around the mean. In other words, they measure the fluctuations of data

values above and below its mean. The variance possesses certain useful mathematical

properties. However, its computation results in squared units such as squared percentages

squared ringgit and squared centimeters. Thus, the primary measure of variation is the

standard deviation, as the value of this measurement is in the original unit of the data.

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