ANSWERS HOMEWORK 2 STAT 3360 FALL 2013

DUE BY SEPTEMBER 10, 2013

PLEASE, SUBMIT THIS DOCUMENT AND SHOW YOUR FIRST AND LAST NAME BELOW!
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LAST NAME

PART 1 (CHAPTER 3)
ASSUME THAT RECORDS OF A RANDOM VARIABLE X ARE COLLECTED AS A SAMPLE. THESE
RECORDS PRESENT THE POLICY QUARTERLY PREMIUM AMOUNTS (MEASURED IN $$) FOR
n = 29 POLICY HOLDERS INSURED BY A LARGE INSURANCE COMPANY.
ID
1
2
3
4
5
6
7
8
9
10

PREMIU

356 400 404 320 335 325 361 375 319 367

ID

11

PREMIU

12

13

14

15

16

17

18

19

20

360 377 350 365 397 337 338 319 398 340

ID

21

PREMIU

22

23

24

25

26

27

28

29

219 312 215 331 319 337 309 331 344

ORDERED VALUES
RANK

VALUE
RANK

VALUE
RANK

VALUE
A.

C.
D.
E.

10

215 219 309 312 319 319 319 320 325 331
11

12

13

14

15

16

17

18

19

20

331 335 337 337 338 340 344 350 356 360
21

22

23

24

25

26

27

28

29

361 365 367 375 377 397 398 400 404

FIND THE COUNTS AND RELATIVE FREQUENCES (IN REGULAR FRACTION FORM)
OF RECORDS INSIDE INTERVALS:
[211 X 240], [241 X 270], [271 X 300], [301 X 330],
[331 X 360], [361 X 390], AND [391 X 420].

CLASS
COUNT
PROPORTIO
N

B.

[211, 240]

2
2/29

[241, 270]

0
0

[271,300]

0
0

[301, 330]

7
7/29

[331,360]

11
11/29

[361, 390]

[391, 420]

5
5/29

4
4/29

BASED ON YOUR FINDINGS, SKETCH THE HISTOGRAM FOR THE PREMIUM

VALUES THAT FALL WITHIN THE INTERVALS SHOWN ABOVE.
WHAT PROPORTION OF PREMIUM VALUES IS BETWEEN $320 AND $400
(INCLUDING THE END-POINTS)? PROPORTION = 21/29.
WHAT IS THE PROPORTION OF INSUREES WITH PREMIUM $360 OR HIGHER?
PROPORTION = 10/29.
HOW MANY INSUREES PAY BELOW $350? PROPORTION = 17/29.
1

ANSWERS HOMEWORK 2 STAT 3360 FALL 2013

DUE BY SEPTEMBER 10, 2013
PLEASE, SUBMIT THIS DOCUMENT AND SHOW YOUR FIRST AND LAST NAME BELOW!
PART 2 (CHAPTER 4)
CONTINUE WITH THE SAME DATA AS IN THE PREVIOUS PART .
FIND THE MEDIAN AND RANGE FOR THIS DATA SET.
MEDIAN = 15TH ORDERED VALUE = 338
RANGE = 404 215 = 189
B. DETERMINE THE LOWER AND UPPER QUARTILES.
LOWER (FIRST) QUARTILE = 319.5 = AVERAGE OF 7TH AND 8TH ORDERED VALUES
UPPER (THIRD) QUARTILE = 366 = AVERAGE OF 22ND AND 23RD ORDERED VALUES
C. FIND THE INTERQUARTILE RANGE.
INTER-QUARTILE RANGE = 366 319.5 = 46.5
D. SKETCH THE BOX PLOT FOR THIS DATA SET.
E. WHICH WHISKER ON THE BOX PLOT IS WIDER?
LEFT WHISKER = 319.5 215 = 104.5 [WIDER THAN]
RIGHT WHISKER = 404 366 = 38
F.
WHICH OF THE TWO QUARTILES IS CLOSER TO THE MEDIAN?
(LEFT PART OF THE BOX) = 338 319.5 = 18.5
(RIGHT PART OF THE BOX) = 366 338 = 28
A.

ANSWERS HOMEWORK 2 STAT 3360 FALL 2013

DUE BY SEPTEMBER 10, 2013
PLEASE, SUBMIT THIS DOCUMENT AND SHOW YOUR FIRST AND LAST NAME BELOW!
PART 3 (CHAPTER 4)
CONTINUE WITH THE SAME DATA AS IN THE 1 ST AND 2ND PARTS.
ANALYZE WHAT WOULD HAPPEN IF TWO RECORDS (X21 = 219 AND X23 = 215) WERE
REMOVED FROM THE SAMPLE.

ORDERED VALUES
RANK

VALUE
RANK

VALUE
RANK

VALUE

10

309 312 319 319 319 320 325 331 331 335
11

12

13

14

15

16

17

18

19

20

337 337 338 340 344 350 356 360 361 365
21

22

23

24

25

26

27

367 375 377 397 398 400 404

A.

FIND THE MEDIAN AND RANGE FOR THIS DATA SET.

MEDIAN = 14TH ORDERED VALUE = 340
RANGE = 404 309 = 189
B. DETERMINE THE LOWER AND UPPER QUARTILES.
LOWER (FIRST) QUARTILE = 325 = 7TH ORDERED VALUE
UPPER (THIRD) QUARTILE = 367 = 21ST ORDERED VALUE
C. FIND THE INTERQUARTILE RANGE.
INTER-QUARTILE RANGE = 367 325 = 42
D. SKETCH THE BOX PLOT FOR THIS DATA SET.
E. WHICH WHISKER ON THE BOX PLOT IS WIDER?
LEFT WHISKER = 325 309 = 16
RIGHT WHISKER = 404 367 = 37 [WIDER THAN LEFT]
F.
WHICH OF THE TWO QUARTILES IS CLOSER TO THE MEDIAN?
(LEFT PART OF THE BOX) = 340 325 = 15 [Q1 IS CLOSER TO MEDIAN THAN
Q3]
(RIGHT PART OF THE BOX) = 367 340 = 27

ANSWERS HOMEWORK 2 STAT 3360 FALL 2013

DUE BY SEPTEMBER 10, 2013
PLEASE, SUBMIT THIS DOCUMENT AND SHOW YOUR FIRST AND LAST NAME BELOW!
PART 4 [SECTIONS 4.4 AND 2.6]
SUPPOSE THAT THE BIVARIATE DATA (X, Y) REPRESENT THE AMOUNT OF HOURS PER
WEEK WORKED BY PART-TIME EMPLOYEES IN A SMALL BUSINESS ( X) AND THE
AMOUNT OF A WEEKLY PAY CHECK (Y) ISSUED TO THE EMPLOYEE. THESE RECORDS
WERE SUMMARIZED, AND THE SUMMARIES ARE SHOWN BELOW.
VARIABLE
SAMPLE SUMMARIES
MEAN
STANDARD DEVIATION
COVARIANCE
HOURS (X)
40.00
15.00
576.00
WAGES (Y)
1,120.00
60.00
A. WHAT IS THE CORRELATION BETWEEN X AND Y?
CORRELATION = 576 / [(15) (60)] = 0.64
B. DETERMINE THE SLOPE AND INTERCEPT FOR THE FITTING LINE EQUATION
SLOPE = (0.64) (60) / (15) = 2.56 OR (576) / (15)2 = 2.56
INTERCEPT = 1,120 (2.56) (40) = 1,017.60
C. IF JOHN HAS WORKED 30 HOURS DURING THE WEEK ANALYZED, WHAT HIS
ESTIMATED PAY CHECK SHOULD BE?
X = 30, (Y-HAT) = 1,017.60 + (2.56) (30) = 1,094.40
D. JOHN HAS EARNED $1,140 FOR THE WEEK ANALYZED. IS HIS RECORD ON THE
SCATTER PLOT ABOVE OR BELOW THE FITTED LINE? ABOVE
DETERMINE THE RESIDUAL FOR JOHN. RESIDUAL = 1,140 1,094.40 > 0.
E. IF ALYSSA WORKED 35 HOURS AND HER PAY CHECK AT THE END OF THE WEEK
WAS $1,075 FOR THE WEEK ANALYZED. WHAT WILL HER ESTIMATED PAY CHECK
BE?
X = 35, (Y-HAT) = 1,017.60 + (2.56) (35) = 1,107.20
F.
DETERMINE THE RESIDUAL FOR ALYSSA. RESIDUAL = 1,075 1,107.20 < 0.
IS HER RECORD ON THE SCATTER PLOT ABOVE OR BELOW THE FITTED LINE?
BELOW (NEGATIVE RESIDUAL VALUE).