Answer ALL questions.
QUESTION 1 (20 marks)
(a) If X ~ Bin (12,0.8) ,
(i) find:
P( X 1) . (3 marks)
(ii) the mean and variance of X.
(2 marks)
(b) Recent crime reports indicate that 3.1 motor vehicle thefts occur each minute in the
United States. Assume that the distribution of thefts per minute can be approximated
by Poisson distribution, calculate the probability that there are more than 3 thefts in a
two-minute interval.
(5 marks)
(c) The Mathematics examination mark for students follows normal distribution, with
mean of 45 and standard deviation of 8.
(i) Find the probability of students who score lower than 50 marks.
(2 marks)
(ii) Find the probability of students who score between 40 and 60 marks.
(3 marks)
(d) The speed with which utility companies can resolve problems is very important. GTC,
the Georgetown Telephone Company, reports it can resolve customer problems the
same day they are reported in 70 percent of the cases. Suppose the 15 cases reported
today are representative of all complaints. Find the probability that at least 12 of the
problems can be resolved today.
(5 marks)
QUESTION 2 (20 marks)
(a) The average lifetime of a light bulb is 3000 hours with a standard deviation of 696
hours. A simple random sample of 36 bulbs was taken. Find the probability that the
average lifetime in the sample will be between 2670.56 and 2809.76 hours.
(5 marks)
(b) Noise levels at various area urban hospitals were measured in decibels. The mean of
the noise levels in 28 corridors was 62.1 decibels, and the standard deviation was 7.9
decibels. Establish an interval for the population mean that is 95% certain to include
the true mean. Assume that the variable is approximately normally distributed.
(5 marks)
(c) In a sample of 295 steel alloy failures that occurred in oil refineries and petrochemical
plants in Japan over the last ten years, 118 were caused by stress corrosion cracking.
Construct a 95% confidence interval for the true proportion of alloy failures caused by
stress corrosion cracking.
(5 marks)
(d) A survey is planned to determine the mean annual family medical expenses of
employees of a large company. The management of the company wishes to be 95%
confident that the sample mean is correct to within $50 of the population mean
annual family medical expenses. A previous study indicates that the standard
deviation is approximately $400.
(i) Find the minimum sample size.
(3 marks)
(ii) If management wants to be correct to within $25 find number of employees
need to be selected. ,
(2 marks)
FORMULAE AND TABLES
(a) Binomial Distribution
PX x C. px.1 p , x 0,1,...,n
n n x
x
Where
p is the probability of success in single trial
n is the number of trials
Mean of a Binomial distribution, E( X ) np
Standard deviation of a Binomial distribution, np1 p
(b) Poisson Distribution
P X x em , x 0,1,...
mx
Where x!
m represents the mean
Mean of a Poisson distribution, E( X ) m
Standard deviation of a Poisson distribution, m
(c) Normal Distribution
X
Z
Where
Z is the number of standard deviation from the mean
X is the value of interest
Mean of a Normal distribution, E( X )
Standard deviation of a Normal distribution, sd(X) = σ
(d) Sampling Distribution
(i) Standard error of mean
se X
n
is the standard deviation for the population
Where
n represent the sample size
OR
s
seX
n
Where
s is the standard deviation for the sample
n represent the sample size
(ii) Standard error of proportion
se p p(1 p)
n
(e) Confidence Interval
(i) Confidence interval for µ:
= tX s
or Xa
Z n
, n1 n 2
Sample size: n
2
2
Z
/2
e
p(1 p)
(ii) Confidence interval for p n
p: Z 2
Sample size, n Z /2 2 p(1
p)
e2
STANDARD NORMAL CUMULATIVE PROBABILITY TABLE
Cumulative probabilities for NEGATIVE z-values are shown in the following table:
Cumulative probabilities for POSITIVE z-values are shown in the following table:
t-DISTRIBUTION