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Topics: Descriptive Statistics and Probability

1. Look at the data given below. Plot the data, find the outliers and find out

Name of company Measure X


Allied Signal 24.23%
Bankers Trust 25.53%
General Mills 25.41%
ITT Industries 24.14%
J.P.Morgan & Co. 29.62%
Lehman Brothers 28.25%
Marriott 25.81%
MCI 24.39%
Merrill Lynch 40.26%
Microsoft 32.95%
Morgan Stanley 91.36%
Sun Microsystems 25.99%
Travelers 39.42%
US Airways 26.71%
Warner-Lambert 35.00%

Answer the following three questions based on the box-plot above.


(i) What is inter-quartile range of this dataset? (please approximate the numbers) In one line, explain what this value implies
(ii) What can we say about the skewness of this dataset?
(iii) If it was found that the data point with the value 25 is actually 2.5, how would the new box-plot be affected?

(i) IQR : 12-5 = 7 , it means that the data distributed around from 5 to 12 with median around 7
(ii) the distribution tendency skewness towards to right side seeing from the boxplot graph
(iii) Q1 position will move to left side to number 2,5 and outlier will not be described into graph. The box will be symetrically

Answer the following three questions based on the histogram above.


(i) Where would the mode of this dataset lie?
(ii) Comment on the skewness of the dataset.
(iii) Suppose that the above histogram and the box-plot in question 2 are plotted for the same dataset. Explain how these gr
* The mode lie in two numbers ( 5 and 7 )
** The skewness of the histogram moves towards right side
*** The box plot showed the median, q1 and q3 also the outliers . Meanwhile the histogram explained the mode or frequenc

4. AT&T was running commercials in 1990 aimed at luring back customers who had switched to one of the other long-distan
mistakenly getting Fiji, where a half-naked native on a beach responds incomprehensibly in Polynesian. When asked about
this was an enactment of something that “could happen.” Suppose that one in 200 long-distance telephone calls is misdirec
(Assume independence of attempts.)

P = 1/2 *5/200 =5/400 =


1/80

5. Returns on a certain business venture, to the nearest $1,000, are known to follow the following probability distribution
x P(x)
-2,000 0.1
-1,000 0.1
0 0.2
1000 0.2
2000 0.3
3000 0.1

(i) What is the most likely monetary outcome of the business venture?
(ii) Is the venture likely to be successful? Explain
(iii) What is the long-term average earning of business ventures of this kind? Explain
(iv) What is the good measure of the risk involved in a venture of this kind? Compute this measure

* 2000
** if we put into the histogram, then we can that the graph will show gradually increasing shape until 2000 and the next valu
*** Average : 1/6
****
explain what this value implies.

-plot be affected?

h. The box will be symetrically divided .

dataset. Explain how these graphs complement each other in providing information about any dataset.
xplained the mode or frequency with outliers identified also .

to one of the other long-distance phone service providers. One such commercial shows a businessman trying to reach Phoenix and
Polynesian. When asked about this advertisement, AT&T admitted that the portrayed incident did not actually take place but added that
nce telephone calls is misdirected. What is the probability that at least one in five attempted telephone calls reaches the wrong number?

wing probability distribution

pe until 2000 and the next value, the possibility is a bit drastically down from 0.3 to 0.1
n trying to reach Phoenix and
ctually take place but added that
calls reaches the wrong number?
Topics: Normal distribution, Functions of Random Variables

1.       The time required for servicing transmissions is normally distributed with m = 45 minutes and s = 8 minutes. The servi
is dropped off and the customer is told that the car will be ready within 1 hour from drop-off. What is the probability that t
A.      0.3875
B.      0.2676
C.      0.5
D.      0.6987

2.       The current age (in years) of 400 clerical employees at an insurance claims processing center is normally distributed w
false, briefly explain why.
A.      More employees at the processing center are older than 44 than between 38 and 44.
B.      A training program for employees under the age of 30 at the center would be expected to attract about 36 employees.

3.       If X1 ~ N(μ, σ2) and X2 ~ N(μ, σ2) are iid normal random variables, then what is the difference between 2

4.       Let X ~ N(100, 202). Find two values, a and b, symmetric about the mean, such that the probability of the random varia

A.      90.5, 105.9
B.      80.2, 119.8
C.      22, 78
D.      48.5, 151.5
E.       90.1, 109.9

5.       Consider a company that has two different divisions. The annual profits from the two divisions are independent and h
Answer the following questions about the total profit of the company in Rupees. Assume that $1 = Rs. 45
A.      Specify a Rupee range (centered on the mean) such that it contains 95% probability for the annual profit of the compa
B.      Specify the 5th percentile of profit (in Rupees) for the company
C.      Which of the two divisions has a larger probability of making a loss in a given year?
utes and s = 8 minutes. The service manager plans to have work begin on the transmission of a customer’s car 10 minutes after the car
off. What is the probability that the service manager cannot meet his commitment?

g center is normally distributed with mean m = 38 and Standard deviation s =6. For each statement below, please specify True/False. If

d to attract about 36 employees.

erence between 2 X1 and X1 + X2? Discuss both their distributions and parameters.

he probability of the random variable taking a value between them is 0.99.

divisions are independent and have distributions Profit 1 ~ N(5, 32) and Profit2 ~ N(7, 42) respectively. Both the profits are in $ Million.
that $1 = Rs. 45
or the annual profit of the company.
mer’s car 10 minutes after the car

ow, please specify True/False. If

oth the profits are in $ Million.