Graduate School of Business

MBA Program

Final Exam
Course : Business Statistics
Lecturer : Prof. Dr.Alaa Abdelbary
Date :

Time : 2 hours

Student Name :

Student Group:
1. The time needed to complete final examination in a particular college course is
normally distributed with a mean of 80 minutes and standard deviation 10 minutes

i. What is the probability of completing the exam in one hour or less?

ii. Assume that the class has 60 students and that the examination period is 90
minutes in length. How many students do you expect will be unable to
complete the exam in the allotted time?

Solution:

µ = 80 min
σ = 10 min
𝑋− µ
Z= σ

i. Z = (60 – 80) / 10 = - 2
Φ (Z ≤ - 2) = 1 – Φ (Z ≤ 2), from Table (Z ≤ 2) = 0.9772
Φ (Z ≤ - 2) = 1 – 0.9772 = 0.0228
P(X ≤ 60) = 0.023 = 2.3 %
The Probability of Completing The Exam in one hour or Less is 2.3 %

ii. Z = (90 – 80) / 10 = 1

Φ (Z > 1) = 1 – Φ (Z ≤ 1), from Table (Z ≤ 1) = 0.8413
Φ (Z > 1) = 0.1587
P(X > 90) = 0.1587 = 15.87 %
No of Students Unable to Complete The Test = Total No of Students X
Probability of Unable to Complete The Test
No of Students Unable to Complete The Test = 60 X 0.1587 = 9.5
No of Students Unable to Complete The Test = 10 Students
2. In developing patient appointment schedules, a medical center wants an estimate of
the mean time that a staff member spends with each patient. How large a sample should
be taken if the desired margin of error is 2 minutes at a 95% level of confidence? Use
a planning value for the population standard deviation of 8 minutes.

Solution:

E = 2 min
Confidence Level is 95 %
σ = 8 min
σ
E = Z X √𝑛, Z = 1.96 at 97.5 % (Confidence Level 95 %)
8
2 = 1.96 X
√𝑛
√n = (8 X 1.96) / 2 = 7.84
n = (7.84)2 = 61.47
n = 62
The Sample Should be Taken is 62 Samples
3. An American Express retail survey found that 16% of U.S. consumers had used the
internet to buy gifts during the holiday's season. If 1285 customers participated in the
survey , what is the interval estimate of the population proportion of the customers
using the internet to buy gifts ? use 95% confidence.

Solution:

R = 0.16
n = 1285
Confidence Level is 95 %

R X (1−R)
E = Z X √( ), Z = 1.96 at 97.5 % (Confidence Level 95 %)
𝑛
0.16 X (1−0.16)
E = 1.96 X √( ) = 0.02
1285
Max Level = 0.16 + 0.02 = 0.18
Min Level = 0.16 – 0.02 = 0.14
The Interval Estimate of the Population Proportion with 95 % Confidence Interval is
between 0.14 and 0.18
4. A recent national survey found that high school students watched an average
(Mean) of 6.8 videos per month. A random sample of 100 college students revealed
that the mean number of videos watched last month was 6.2 with standard deviation
0.5. At the 0.05 level of significance, can we conclude that college students watch
fewer videos a month than high school students do?

Solution:

ẋ = 6.8 videos
n = 100 students
x1 = 6.2 videos
σ = 0.5 videos
Level of Significance is 0.05

H0 ZC ≥ ZT
H1 ZC < ZT

ZT = - 1.645 from Table (The Negative sign because of Less than condition)
x1− ẋ
ZC = σ/√n = (6.2 – 6.8) / (0.5 / √100)
ZC = - 12

As ZC < ZT Then Accept H1

We can Conduct that College Students Watch Fewer Videos a Month Than High
School Students Do.
5. A Nielsen survey provided the estimate that the mean number of hours of television
viewing per household is 7.25 hours per day. Assume that the Nielsen survey
involved 200 households and that the sample standard deviation was 2.5 hours per
day. Ten years ago, the population mean number of hours of television viewing per
household was reported to be 6.70 hours. Letting  = the population mean number of
hours of television viewing per household in , test the hypotheses
H0 :   6.70 and
H1 :  > 6.70 . use  = 0.01 .

Solution:

ẋ = 7.25 hours
n = 200 household
x1 = 6.7 hours
σ = 2.5 hours
Level of Significance is 0.01

H0 ZC ≤ ZT
H1 ZC > ZT

ZT = - 2.326 from Table (The Negative sign because of Less than condition)
x1− ẋ
ZC = σ/√n = (6.7 – 7.25) / (2.5 / √200)
ZC = - 3.11

As ZC < ZT Then Accept H1