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MGMT 5113 (SPRING 2014)

Quiz 1
Name: __________________________________________________________
NOTE: You have one hour to do the quiz. You can refer to your notes and book and use the
normal table. You are NOT allowed to use the Internet or take help from anyone.
Show your working wherever required. You can use excel for your calculation.
Section A (1 point each): Select the right answer by highlighting your choice.
1. Which of the following is not a measure of dispersion?
a. mode
b. standard deviation
c. range
d. interquartile range

Answer: a
2. From a population of size 1,000, a random sample of 100 items is selected. The mean of the
sample
a. must be 10 times smaller than the mean of the population
b. must be equal to the mean of the population, if the sample is truly random
c. must be 10 times larger than the mean of the population
d. can be larger, smaller or equal to the mean of the population

Answer: d

31. If A and B are independent events with P(A) = 0.65 and P(A B) = 0.26, then, P(B) =
a. 0.400
b. 0.169
c. 0.390
d. 0.650

ANS: A

Section B
4.
120 230 110 115 160
130 150 105 195 155
105 360 120 120 140
100 115 180 235 255
From the data above (9 points)
a. Compute the mean, median and the mode

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b. Compute and interpret the 90
th
percentile
c. Compute the standard deviation

Answer a.
3200
160
20
i
x
x
n
= = =

Order the data from low 100 to high 360
Median
50
20 10
100
i
| |
= =
|
\ .
Use 10
th
and 11
th
positions
Median =
130 140
135
2
+ | |
=
|
\ .

Mode = 120 (occurs 3 times)
b.
90
20 18
100
i
| |
= =
|
\ .
Use 18
th
and 19
th
positions
90
th
percentile
235 255
245
2
+ | |
= =
|
\ .

90% of the tax returns cost $245 or less. 10% of the tax returns cost $245 or more.
c. Standard Deviation = 66.63

5.
Age Number
18-24 29.8
25-34 40.0
35-44 43.4
45-54 43.9
55-64 32.7
65 and over 37.8
Assume that a person is randomly chosen from the population (8 points)
a. What is the probability that a person in 18-24 years old?



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b. What is the probability that a person in 18-34 years old?

Answer a. (29.8/227.6)*100= 13.09 %
b. {(40+29.8)/227.6}*100=30.66 %

6. Suppose we have a sample space of four equally likely experimental outcomes: E1, E2, E3,
E4. (8 points)
Let A = {E1, E2} and B = {E3, E4}
a. Find P (A)
b. Find P (A
C
)
c. Find P (AUB)
d. Find P (AB)

Answer a. P (A) = P{E1, E2}= 0.25 + 0.25= 0.5
b. P (A
C
) = 1- P (A) = 0.5
c. P (AUB) = P(E1 + E2 + E3 + E4) = 0.25+0.25+0.25+0.25=1
d. P (AB) = 0 as A & B do not have any sample points in common
7. "DRUGS R US" is a large manufacturer of various kinds of liquid vitamins. The quality
control department has noted that the bottles of vitamins marked 6 ounces vary in content with a
standard deviation of 0.3 ounces. Assume the contents of the bottles are normally distributed.
(10 points)
a. What percentage of all bottles produced contains more than 6.51 ounces of vitamins?

b. What percentage of all bottles produced contains less than 5.415 ounces?

c. What percentage of bottles produced contains between 5.46 to 6.495 ounces?

d. Ninety-five percent of the bottles will contain at least how many ounces?

e. What percentage of the bottles contains between 6.3 and 6.6 ounces?


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ANS:

a. 4.46%
b. 2.56%
c. 91.46%
d. 5.5065 ounces
e. 13.59%