Question 1: (10 marks) In a recent report by CallOften, 38% of mobile phone users are

their customers. The monthly charges of CallOften customers are normally distributed with
mean $65, and standard deviation $8. The monthly charges of non-CallOften customers are
also normally distributed with mean $60 and standard deviation $10.
a. (4 marks) For a CallOften customer, what is the probability that this person monthly
charge is over $63? How about for a non-CallOften customer?
b. (3 marks) A mobile phone user is randomly selected. What is the probability that this
person monthly charge is over $63.
c. (3 marks) Donna is a mobile phone user whose monthly charge is over $63. What is
the chance that she is a non-CallOften customer?
Question 2: (10 marks)
a. (4 marks) A bias coin is tossed four times. If probability of head in a single toss is
0.61, nd the probability of
i. (2 marks) at most 1 head.
ii. (2 marks) at least 2 heads.
b. (6 marks) Suppose X is a binomial random variable with n = 10 and p = 0.5, nd
i. (2 marks) mean and variance of X.
ii. (2 marks) P(X = 5).
iii. (2 marks) P(X 4).
Question 3: (10 marks) Behavioural researchers have developed an index designed to
measure managerial success. This index is assumed to be following a normal distribution. A
researcher wants to compare the average success index for two groups of managers at a large
manufacturing plant. First group of managers (F) engage in a high volume of interactions
with people outside the managers work unit. Second group of managers (S) rarely interact
with people outside their work unit. The data are:
Manager 1 2 3 4 5 6 7 8 9 10
F 65 58 78 60 68 69 66 70 53 71
S 62 63 66 50 57 68 53 60 68 54
F S = D 3 -5 12 10 11 1 13 10 -15 17
The following is the MINITAB output for the summary statistic:
Variable N Mean Median TrMean StDev SE Mean
F 10 65.80 57.00 65.87 7.21 2.28
S 10 60.10 61.00 60.38 6.42 2.03
D 10 5.70 10.00 6.87 9.76 3.09
Variable Minimum Maximum Q1 Q3
F 53.00 78.00 59.50 70.25
S 50.00 68.00 53.75 66.50
D -15.00 17.00 -0.50 12.35
a. (7 marks) Obtain a 95% condence interval for the dierence in mean success indexes
of managers in the two group.
b. (3 marks) Does the interval in part (a) support the statement on average, the success
index for the two groups of managers are signicantly dierent? Why?
Question 4: (10 marks) In a survey of 277 randomly selected adult female shoppers,
69 stated that whenever an advertised item is unavailable at their local supermarket, they
request a rain check.
a. (5 marks) Obtain a 79.6% condence interval for the true proportion of adult female
shoppers who request a rain check in such situations.
b. (5 marks) A new survey is going to be conducted. What sample size is necessary if the
95% condence interval of the true proportion of adult female shoppers who request a
rain check in such situations is to have length at most 0.1?
Question 5: (10 marks)
a. (5 marks) The number of persons coming to a government oce per day was recorded
for 10 days. The results are:
No. of persons per day: 0 1 2 3 4 17
No. of days: 1 1 2 2 3 1
Find the sample mean, median and standard deviation of the number of persons coming
to the government oce.
b. (5 marks) Based on the following information of a set of data: Minimum = 115, Maximum =
202, Median = 150, Q
3
= 178, and IQR = 30, explain how you know that there are
no outliers in the sample? Also construct the boxplot for the data set.
Question 6: (10 marks) With the rapid growth in legalized gambling in US, there is
concern that the involvement of youth in gambling activities is also increasing. Professor
Stincheld of the University of Minnesota have done two independent studies. First study
was done in 1992 and he reported that 4684 of the 21484 Grade 9 students surveyed gambled
weekly. Second study was done in 1998 and he reported that 5313 of the 23199 Grade 9
students surveyed gambled weekly. Do the data provide sucient evidence indicating that
there the proportion of Grade 9 students gambled weekly has increased since 1992?
Question 7: (10 marks)
a. (4 marks) A fair die is rolled 500 times. Find the probability that a number 2 or less
comes up on at most 150 rolls.
b. (6 marks) The scores on a psychological prole test given to job applicants at a nu-
clear facility are known to be normally distributed with a mean of 65 and a standard
deviation of 10.
i. (3 marks) What score is required for an applicant to be in the top 10%?
ii. (3 marks) Suppose a random sample of 16 applicants is selected, nd the proba-
bility that the sample mean score is above 70.
Question 8: (10 marks) The following 7 observations are a random sample from a normal
population.
7.4 7.1 6.5 7.5 7.6 6.3 6.9
a. (5 marks) Obtain a 98% condence interval of the population mean.
b. (5 marks) At 1% level of signicance, do the data support the claim that the population
mean is less than 7.5?
Question 9: (10 marks) An US insurance company wants to predict the amount of re
damage in major residential res (A) (in $1000) from the distance between the burning house
and the nearest re station (D) (in miles). The company collected a sample of 15 recent
res in a large suburb of a major US city. The data and some summary statistics are:
D 3.4 1.8 4.6 2.3 3.1 5.5 0.7 3.0
A 26.2 17.8 31.3 23.1 27.5 36.0 14.1 22.3
D 2.6 4.3 2.1 1.1 6.1 4.8 3.8
A 19.6 31.3 24.0 17.3 43.2 36.4 26.1
D
1
+. . . +D
n
= 49.2, D
2
1
+. . . +D
2
n
= 192.16, (D
1

D)
2
+. . . + (D
n

D)
2
= 34.784,
A
1
+. . . +A
n
= 396.2, A
2
1
+. . . +A
2
n
= 11376.48, (A
1

A)
2
+. . . + (A
n

A)
2
= 911.5173,
D
1
A
1
+. . . +D
n
A
n
= 1470.65, (D
1

D)(A
1

A) +. . . + (D
n

D)(A
n

A) = 171.114
a. (7 marks) For the purpose of the insurance company, obtained the least squares regres-
sion line and interpret the slope of the regression line in the context of this question.
b. (3 marks) What is the predicted amount of damages when the re station is 4 miles
away from the burning house?
Question 10: (10 marks) A pupillometer is a device used to observe changes in pupil
dilations as the eye is exposed to dierent visual stimuli. Marketing organizations sometimes
use readings from this device to help them evaluate potential consumer interest in new
products, alternative package designs, and other factors. Assume readings from this device
are normally distributed. Target Group of Ontario used the device on 15 consumers and
recorded the readings (in mm) of two silverware patterns. Some summary statistics are:
Pattern Mean Standard deviation
Pattern 1 1.122 0.505
Pattern 2 0.883 0.453
Dierence 0.239 0.161
a. (7 marks) Do the data provide sucient evidence to indicate that the mean amount
of pupil dilation diers for the two patterns?
b. (3 marks) What is the meaning of committing Type I error for the problem in part
(a)?