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2 visualizzazioni12 pagineBus216 Exam 1 Review Solutions Rev Sp18 (1)

Dec 23, 2019

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Bus216 Exam 1 Review Solutions Rev Sp18 (1)

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Bus216 Exam 1 Review Solutions Rev Sp18 (1)

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How to use this review: Work through these problems, using as few resources as

possible (i.e. text and notes). Make notes of where you are having difficulty as you

go! Once you have solved or worked through the problem, go to the solutions

provided and compare your work to the solutions provided. Then refer back to your

text/notes for clarification.

1. Math test anxiety can be found throughout the general population. A study of

116 seniors at a local high school was conducted. The following Frequency

Distribution was produced from the data. Complete the missing parts. Round all

values to two decimal places.

Relative Cumulative

Score Range Frequency

Frequency Frequency

Generally Relaxed (19 > 26) 24 0.21 0.54

Some Mild Anxiety (26 > 32) 23 0.20 0.74

Anxious/Tense (32 > 36) 8 0.07 0.81

Very Anxious (36 > 50) 22 0.19 1.00

The relative frequency of 0.33 within the total study of 116 seniors, then 116 x .33 =

39, and 116 X .19 = 22, then 39 + 24 + 8 + 22 + X = 116 or 23

Then, Relative Frequency is 24/116 = .21 and 23/116 = 19.8 and 8/116 = 0.068

Finally, for Cumulative Frequency: 0.33 + 0.21 = 0.54 and then 0.54 + 0.20 = 0.74

which means that 0.74 + 0.07 = 0.81 and finally, 0.81 + 0.19 = 1.00

2. The grade point average of the students at UVA is 3.25 with a standard deviation

of 0.84 while the grade point average of students at ODU is 3.20 with a standard

deviation of 0.82. Which university shows a more dispersed grade distribution?

Why do you conclude this?

The comparison of two sets of data requires the use of the Coefficient of

Variation:

𝟎. 𝟖𝟒

𝑼𝑽𝑨 = (𝟏𝟎𝟎) = 𝟎. 𝟐𝟓𝟖𝟒𝟔 ≈ 𝟐𝟓. 𝟖𝟓%

𝟑. 𝟐𝟓

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BUS216 Exam #1 Review SOLUTIONS

𝟎. 𝟖𝟐

𝑶𝑫𝑼 = (𝟏𝟎𝟎) = 𝟎. 𝟐𝟓𝟔𝟐𝟓 ≈ 𝟐𝟓. 𝟔𝟑%

𝟑. 𝟐𝟎

The higher CV of 25.85% for grades at UVA indicates that the grades at UVA

are more dispersed than the grades at ODU.

worker spends an average of 413 minutes a day on the job. Suppose the standard

deviation is 26.8 minutes and the time spent is approximately a normal

distribution. What are the times within which approximately 99.7% of all work

days will fall?

Rule which states that 99.7% of the data in a normal distribution will fall

plus or minus three Standard Deviations from the Mean of the Distribution.

413 ± [26.8 x 3] = 413 ±80.4 minutes, making the interval 332.6 minutes and

493.4 minutes.

4. Morningstar reports that for a selected group of Mutual Funds, the average

return on investment is $2.828 on the dollar, with a Standard Deviation of

$1.213. Potential investors are interested in determining the return they can

expect on their investment, when stock prices do not follow a symmetrical

distribution. 82.75% of these returns will fall within what interval?

𝟏

𝟖𝟐. 𝟕𝟓 = 𝟏 − 𝒌𝟐 and solving for 0.1725k2 = 1 or k = 2.407

$2.828 ± [(2.407)(1.2130] =

$2.828 ±2.9205 = -$0.0925and $5.748

$5.748

light bulbs. In order to conduct testing of the life hours of their light bulbs, they

randomly sampled nine light bulbs and measured how many hours they lasted.

378, 361, 350, 375, 200, 391, 375, 368, 321. What is the 65th percentile?

2

BUS216 Exam #1 Review SOLUTIONS

65

200 𝑖= (9) = 5.85 ≈ 6

321 100

After the data is sorted, the7th term

350 Is located as 375, which is the location

361 Of the 65th Percentile of the sample data

368

375

375

378

391

6. The average lateness for one of the top airline companies is 10 minutes. The

variance of the lateness measure is calculated as 9. An airplane arrived 13

minutes after the stated arrival time. Calculate the Z-score for this particular

airplane's lateness. Where would this plane’s arrival appear if shown on the

normal distribution curve?

this plane’s arrival would fall one standard deviation above the mean.

𝟏𝟑 − 𝟏𝟎

𝒛= = 𝟏

𝟑

from the last two seasons, it was found that on average 102,000 people attended

the Sprint Cup race. It was also determined that attendance has a standard

deviation of 6,000. If a track is considering enlarging the grandstand, what

percentage of the races will see attendance between 108,000 and 114,000?

3

BUS216 Exam #1 Review SOLUTIONS

4

BUS216 Exam #1 Review SOLUTIONS

8. For a recent year, the numbers of murders in 24 selected cities are shown. A

researcher wants to analyze this data further.

270 71 226 141 390 74 328 65

366 248 298 69 127 68 159 98

In order to facilitate the analysis of the data, prepare a frequency Distribution, with

cumulative frequencies, and cumulative percent frequencies. Use 5 classes to

construct the distribution.

Murders cumulative

65 < 131 98 66 9 37.5 9 37.5

131 < 197 164 66 3 12.5 12 50.0

197 < 263 230 66 4 16.7 16 66.7

263 < 329 296 66 5 20.8 21 87.5

329 < 395 362 66 3 12.5 24 100.0

24 100.0

9. The local amusement park was interested in analyzing wait time at their most

popular roller coaster at the peak park time (2 p.m.). They selected 13 patrons

and had them get in line between 2 and 3 p.m. Each was given a stop watch to

record the time they spent in line. The times recorded were as follows (in

minutes): 118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118

For these waiting times, calculate the following, treating your data as a Sample:

a. Mean

b. Median

c. Mode

d. Range

e. Standard Deviation

f. Identify outliers by identifying the Inner and Outer Fences. If there

are outliers, are they mild or extreme?

g. Calculate the Pearsons Coefficient of Skewness.

5

BUS216 Exam #1 Review SOLUTIONS

Waiting Times

mean 114.15

sample variance 557.97

sample standard deviation 23.62

minimum 45

maximum 148

range 103

median 118.00

3rd quartile 121.00

interquartile range 5.00

mode 118.00

low extremes 2

low outliers 1

high outliers 1

high extremes 1

BoxPlot

2/8/2015

19:39.04 (1)

Waiting Times

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BUS216 Exam #1 Review SOLUTIONS

𝑶𝒖𝒕𝒆𝒓 𝑭𝒆𝒏𝒄𝒆𝒔: 116 − 3.0 × 5 𝑎𝑛𝑑 121 + 3.0 × 5

This gives you Inner Fences of 108.5 and 128.5 and your Outer Fences are

101 and 136. Now check your data …. you have the following outliers:

Mild: 108 and 130

Extreme: 99,45, 148

3(114.15 − 118)

𝑃𝑒𝑎𝑟𝑠𝑜𝑛𝑠 𝐼𝑛𝑑𝑒𝑥 𝑜𝑓 𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠: 𝑆𝑘 = = −0.4889

23.62

It is negative, which gives you a left hand skew to the distribution. This is

supported by the Box Plot by the location of the Median to the left hand

side of the “box” which is the IQR or the middle 50% of the data. Also, if

graphed as a Histogram – you will see that the majority of the data falls

to the right , creating that elongated tail to the left of the distribution.

10. Forbes magazine publishes data on overseas business travel costs. The report

that the average per diem total for a traveler in London, England is $349.

Suppose that the shape of the distribution is unknown, but that 53% of the per

diem amounts are between $317 and $381. What is the value of the standard

deviation?

𝟏

𝟏− = . 𝟓𝟑 𝟎. 𝟒𝟕𝒌𝟐 = 𝟏 𝒌 = 𝟏. 𝟒𝟓𝟖

𝒌𝟐

$𝟑𝟐. 𝟎𝟎

= $𝟐𝟏. 𝟗𝟒𝟕𝟖 ≈ $𝟐𝟏. 𝟗𝟓

𝟏. 𝟒𝟓𝟖

11. Refer to the following wage breakdown for a garment factory. What is the class

midpoint for the class with the greatest frequency?

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BUS216 Exam #1 Review SOLUTIONS

Stem Leaf

1 0, 2, 5, 7

2 2, 3, 4, 8

3 0, 4, 6, 6, 9

4 5, 8, 8, 9

5 2, 7, 8

Suppose that a frequency distribution was developed from this, and there were 5

classes (10-under 20, 20-under 30, etc.). What is the cumulative frequency for the

30-under 40 class interval?

1 0, 2, 5, 7 4 4

2 2, 3, 4, 8 4 8

3 0, 4, 6, 6, 9 5 13

4 5, 8, 8, 9 4 17

5 2, 7, 8 3 20

13. A study of business faculty at state supported institutions in Ohio revealed that

the arithmetic mean salary for nine months is $52,000 and a standard deviation

of $3,000. The study also showed that the faculty had been employed an average

(arithmetic mean) of 15 years with a standard deviation of 4 years. How does the

relative dispersion in the distribution of salaries compare with that of the

lengths of service?

sets. Calculate the CV for each year, and the lower the CV – the less dispersion or

variation.

$3,000

𝑆𝑎𝑙𝑎𝑟𝑦 = (100) = 5.76%

$52,000

4

𝑌𝑒𝑎𝑟𝑠 = (100) = 26.67%

15

In this case, the conclusion is that the salaries of business faculty is less

dispersed and more consistent than the years of service, based on the CV of

5.76% for Salary as compared to the CV of 26.67% for years of service.

8

BUS216 Exam #1 Review SOLUTIONS

14. Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s Electrical

Division, is leading a study to assess the relative importance of product features.

Two items on a survey questionnaire distributed to 100 of Plano’s customers

asked them to rate the importance of “ease of maintenance” and “efficiency of

operation” on a scale of 1 to 10 (with 1 meaning “not important” and 10 meaning

“highly important”). His staff assembled the following statistics on these two

items.

Mean 7.5 6.0

Median 8.5 5.5

Mode 9.0 4.5

Standard Deviation 1.5 2.5

What can Manuel conclude from these statistics about the shape of the two

distributions? Which is the most consistent? Support your conclusions.

shown by the Pearson Index. In addition, the Median is larger than the Mean,

which drags the curve to the right, leaving excess data in the left tail,

creating a negative skew.

3(7.5 − 8.5)

𝑃𝑒𝑎𝑟𝑠𝑜𝑛𝑠 𝐼𝑛𝑑𝑒𝑥 𝑜𝑓 𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠: 𝑆𝑘 = = −2.0

1.5

Efficiency of Operation: This will be skewed to the Right (positive skew) as

shown by the Pearson Index. In addition, the Median is smaller than the

Mean and falls to the left which allows additional data to remain in the right

side tail, creating the positive skew.

3(6.0 − 5.5)

𝑃𝑒𝑎𝑟𝑠𝑜𝑛𝑠 𝐼𝑛𝑑𝑒𝑥 𝑜𝑓 𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠: 𝑆𝑘 = = 0.60

2.5

Consistency:

appears that Efficiency of Operation is the most consistent. This is supported

by the relative CV values of 20% versus 41.66%. The lower CV value indicates

a more consistent and less dispersed set of data.

1.5

𝐸𝑎𝑠𝑒 𝑜𝑓 𝑀𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒 = (100) = 20%

7.5

2.5

𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 𝑜𝑓 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 = (100) = 41.66%

6.0

9

BUS216 Exam #1 Review SOLUTIONS

15. A survey of car rental agencies shows that the average cost of a car rental is

$0.32 per mile, and has a standard deviation of $0.03. The agency conducting the

survey cannot make an assumption that their data is normally distributed. They

need to know the range that will contain 75% of their data.

1 1

1− 2

= .75 .25 = 2 .25𝑘 2 = 1 𝑘 2 = 4 𝑘 = 𝟐

𝐾 𝑘

institutions in Ohio revealed the mean income to be $72,000 per year with a

standard deviation of $3,000. If we assume normal distribution, what proportion

of the faculty earns more than $66,000 but less than $78,000? If 2,500 faculty

members were surveyed and we cannot assume normal distribution, how many

faculty members earned between $66,000 and $78,000?

17. Many retailers consider the impact of “add-on” purchases on overall sales. In

April, Green Mountain Coffee collected information on the number of customers

per day who purchased ground coffee by the pound in addition to a prepared

drink. The cumulative frequency distribution shown below is the result of that

survey. How often did fewer than 16 customers make an add-on purchase?

40

30

20

10

0

6 8 10 12 14 16 18

30% of the time fewer than 16 customers made an add-on purchase.

10

BUS216 Exam #1 Review SOLUTIONS

18. A researcher has collected the waiting times for an on-line support service and

they were found to have a mean of 8.2 minutes. Four of the values are 6, 10, 7

and 12. What is the 5th value?

∑(𝑿) 𝟑𝟓 + 𝑿

𝝁= 𝟖. 𝟐 = 𝟖. 𝟐 𝒙 𝟓 = 𝟑𝟓 + 𝑿 𝟒𝟏 = 𝟑𝟓 + 𝒙 𝑿 = 𝟔

𝑵 𝟓

19. Refer to the following wage breakdown for a garment factory. What is the class

midpoint for the class with the greatest frequency?

The class with the greatest frequency is 7 > 10, which makes the midpoint: 7

+ 10 = 17 and 17/2 = 8.50

20. For a recent year, the numbers of murders in 18 selected cities are shown.

270 71 226 141 390 74

366 248 298 69 127 68

(a) Mean, Median, Mode, IQR, Range, Variance and Standard Deviation

(b) Check the data for Outliers

(d) Construct a frequency Distribution of the Data using 4 classes

(e) Construct a Box Plot for the Data

(f) What would the shape of the Distribution look like if represented on a

Histogram based on a Pearson’s Coefficient?

Number of Murders

count 18

mean 215.39

sample variance 12,798.96

sample standard

deviation 113.13

minimum 68

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BUS216 Exam #1 Review SOLUTIONS

maximum 390

range 322

median 248.00

3rd quartile 302

interquartile range 228

mode 248.00

low outliers 0

high outliers 0

lower upper frequency percent frequency percent

68 < 133 6 33.3 6 33.3

133 < 198 1 5.6 7 38.9

198 < 263 4 22.2 11 61.1

263 < 328 4 22.2 15 83.3

328 < 393 3 16.7 18 100.0

18 100.0

12

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