Chapter 05 - Continuous Random Variables

STUDENT SOLUTION MANUAL

Business Statistics in Practice, Third Canadian Edition
by
Bowerman, Aitken Schermer, Johnson, & OConnell

CHAPTER 5
Continuous Random Variables

5.7

[LO2]
f ( x) =

5.9

[LO2]
a.

b.

5.11

1
1
1
=
=
d c 175 50 125

c+d 0+6
=
=3
2
2
( d c ) 2 ( 6 0) 2
x2 =
=
=3
12
12
x = 3 = 1.732

x =

[ x x ] = [3 1.732] = [1.268, 4.732]

[LO2]
a.

b.

f(x)
1/20

120

140
Student Solution Manual
Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-1

Chapter 05 - Continuous Random Variables

5.13

c.

P(125 x 135) = 10 (1/20) = .5

d.

P(x 135) = 5 (1/20) = .25

[LO2]
a.

b.

f(x)
1/3

c.

5.15

6 centimeters

P(x 4) = 1 P(x < 4) = 1 .3333 = .6667

P(x 5) = 1 P(x < 5) = 1 .6667 = .3333

[LO2]
a.

b.

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-2

Chapter 05 - Continuous Random Variables

5.23

5.25

5.27

[LO3]
a.

z=

25 30
= 1 ; x is one standard deviation below the mean.
5

b.

z=

15 30
= 3 ; x is three standard deviations below the mean.
5

c.

z=

30 30
= 0 ; x is equal to the mean.
5

d.

z=

40 30
= 2 ; x is two standard deviations above the mean.
5

e.

z=

50 30
= 4 ; x is four standard deviations above the mean.
5

[LO3]
a.

z .01 = 2.33

b.

z .05 = 1.645

c.

z.02 = 2.054 or 2.05 with rounding

d.

z .01 = 2.33

e.

z .05 = 1.645

f.

z .10 = 1.28

[LO4]
First find the z-value from the table that makes the statement true. Then calculate x using the
formula:
x = z + = z(100) + 500
a.

P(x 696) = .025

b.

P(x 664.5) = .05

c.

P(x < 304) = .025

d.

P(x 283) = .015

e.

P(x < 717) = .985

Student Solution Manual
Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-3

Chapter 05 - Continuous Random Variables

5.29

f.

P(x > 335.5) = .95

g.

P(x 696) = .975

h.

P(x 700) = .0228

i.

P(x > 300) = .9772

[LO4]
a. (1) P(x 959) = P(z 2.12) = .9830
(2) P(x > 1004) = P(z > 2.72) = 1 .9967 = .0033
(3) P(x < 650) + P(x > 950) = P(z < 2) + P(z > 2) = .0228 + (1 .9772) = .0456
b.

P(x > 947) = P(z > 1.96) = .025

order 100
= 1.96
16
order = 947 boxes of cereal

5.31

5.35

[LO4]
a.

P(x 8.71) = P(z 3.35) = 1-.9996 = .0004

b.

Claim is probably not true, because the probability is very low of randomly purchasing a
car with a fuel efficiency of 8.71L/100km, if the mean is actually 7.84L/100km.

[LO5]
a.

10%, 90%, approximately -13.968

k
z=

1.28 =

k 12.4
20.6

k = 13.968
b.

Q1 : 0.67 =

k 12.4
20.6

k = 1.402
Q3 : 0.67 =

k 12.4
20.6

k = 26.202

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-4

Chapter 05 - Continuous Random Variables

5.37

5.39

[LO5]
a.

[ 2.33]

b.

[50.575 2.33(1.6438)] = [46.745, 54.405]

[LO4]

a.

Process A:
Process B:
Process B is investigated more often.

b.

Process A:
Process B:
Process A is investigated more often.

5.41

c.

Process B will be investigated more often.

d.

k 0
= .5 . Thus k = 5000.
10,000
Investigate if cost variance exceeds $5000.
P(x > k) = .3085 implies that z =

[LO5]
656

= .44

896

= 1.96

896 = 1.96
656 = .44
= .44 656
= 1.96 896
= .44 + 656
= 1.96 + 896
.44 + 656 = 1.96 + 896
2.4 = 896 656
2.4 = 240
= 100
= .44 + 646
= .44(100) + 656 = 44 + 656 = 700
5.47

[LO6]

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-5

Chapter 05 - Continuous Random Variables

a.

(1) Both np and n(1 p) exceed 5.

(2) = np = (1000)(.2) = 200, = npq = 160 = 12.6491
(3) P(x 150) = P(x 150.5) = P(z 3.913) = less than .001

b.

5.49

No. If the claim were true, the probability of observing this survey result is less than
.001.

[LO6]
a.

= (250)(.05) = 12.5, = 11.875 = 3.446

(approximately)

b.

5.51

No, the probability of this result is close to zero (0) if the claim is true.

[LO6]
a.

We should only use the normal approximation of the binomial distribution when both np
and n(1-p) are greater than 5. Since p = .0001, the minimum value of n can be found as
follows:

b.

c.

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-6

Chapter 05 - Continuous Random Variables

d.

Note the rounding in order for the range to include 172.2856, the lower value had to be
rounded down. In order for the range to include 227.7144, the upper value had to be
rounded up.

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-7

Chapter 05 - Continuous Random Variables

5.55

[LO7]
a.

b.

c.
d.

P (.25 x 1) = e 2(.25) e 2(1) =.4712

e.
1 1
1
1 1
= = .5, 2x = 2 = .25, x = = = .5
2
2

f.

x =

g.

[ x 2 x ] = [.5 2(.5)] = [.5,1.5]

P (.5 x 1.5) = e 2( 0) e 2(1.5) = .9502

5.57

[LO7]
a.

b.

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-8

Chapter 05 - Continuous Random Variables

c.

P (a x b) = e a e b = e 7 a / 15 e 7 b / 15
(1) P(1 x 2) = .2338
(2) P(x < 1) = .3729
(3) P(x > 3) = .2466
(4) P(.5 x 3.5) = .5966

d.

e.

5.59

15
225
1 15
1
x = = , x2 = =
, x = =
7
49
7

[ x x ] = 15 15 = [0, 4.2857], P(0 x 4.2857) = .8647

7
7
[ x 2 x ] = 15 2 15 = [2.1429, 6.4286], P(0 x 6.4286) =.9502
7
7

[LO7]
a.

b.

c.

d.
e.

P (100 x 300) = e 100 / 250 e 300 / 250 = .3691

f.

Probably not; the probability of this result is quite small (.0198) if the claim is true.
Student Solution Manual
Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-9

Chapter 05 - Continuous Random Variables

5.61

[LO4]

5.63

[LO4, LO5]
a.
b.

5.65

5.67

[LO4]
a.

P(x 3.5) = P(z 1.25) = 1-.1056 = .8944

b.

P(x 6) = P(z 0.83) = .7967

c.

P(3.5 x 6) = .7967 .1056 = .6911

[LO5]

Set lowest passing score to 102

5.69

[LO6]

300.5 292.5

P( x 300.5) = P z
= P( z 1.48) = .9306
5.40833

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-10

Chapter 05 - Continuous Random Variables

5.71

[LO4]

5.73

[LO7]
x = 60 sec, = 1

5.75

a.

P ( x 1.5 min) = e 1.5 = .2231

b.

P ( x 2 min) = e 2 = .1353

[LO6]
= np = (400)(.50) = 200

= npq = (400)(.5)(.5) = 100 = 10

a.
b.

5.77

Yes, because the probability of the result is very low (.0256) if the claim is true

Internet Example
Minority Canadians:

$748.01 to $757.99

Non-minority Canadians:

$844.59 to $857.41

Canadian born individuals:

$824.97 to $837.03

Immigrants:

$846.36 to $859.64

Student Solution Manual

Business Statistics in Practice, Third Canadian Edition
2014 McGraw-Hill Ryerson Limited. All rights reserved.
5-11