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Solution_CaseStudy_Business Statistics_2024-MANCOSA

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Business Statistics Case Study solved! 1. The customer-care division of a large departmental store specializing in electrical appliances received several complaints in the past year. The time taken to resolve the complaints was variable. The accompanying table gives the number of days between th...

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  • February 7, 2024
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Available practice questions

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Some examples from this set of practice questions

1.

You are given that a certain brand of audio speakers has an average trouble-free lifespan of 7.5 years with a standard deviation of 30 months. Assume that the lifetimes of individual speakers in the sample are normally distributed.

Answer: Converting Standard deviation into years [(30 months)/(12 months)]= 2.5 years z= (x-µ )/σ =(9 years-7.5 years)/(2.5 years) =0.6 Using a normal distribution table, we find that the probability corresponding to a z-score of 0.6 is approximately 0.2257. P(X > 9) = P(0.6 > z) = 0.5 – 0.2257 = 0.2743 or 27.43%

2.

Twelve audio speakers of this brand are purchased by a company for 12 of its employees. What is the probability that exactly 7 out of the 12 audio speakers purchased by the company will work for over 9 years without any problem?

Answer: n=12, p=7/12=0.58 , q=1 – 0.58 = 0.42 P(r > 9) = P(10) + P(11) + P(12) =12!/10!(12-10)!(〖0.58)〗^10 (〖0.42)〗^2+ 12!/11!(12-11)!(〖0.58)〗^11 (〖0.42)〗^1+12!/10!(12-12)!(〖0.58)〗^12 (〖0.42)〗^0 =0.0501 + 0.0125 + 0.0014 =0.064 or 6.4%

3.

The annual family expenditure of 421 families in the main city is normally distributed with amean of Rs. 800,000 and a standard deviation of Rs.75, 000. If a family of the city is selectedrandomly,(i) What is the probability that the annual expenditure of a family is greater than Rs600,000?

Answer: P(X>600000)=P((X−800000) / 75000>(600000−800000) / 75000) =P(z>−2.6667) =0.9962

4.

The annual family expenditure of 421 families in the main city is normally distributed with amean of Rs. 800,000 and a standard deviation of Rs.75, 000. If a family of the city is selectedrandomly. (ii) What is the probability that the annual expenditure of a family is in between Rs.650,000 and Rs.840, 000.

Answer: P(650000<X<840000)=P((6500000−800000) / 75000<(X−800000) /75000<(8400000−800000) / 75000) =P(−2<z <0.5333) =P(z<0.5333)−P(z<−2) =0.7031−0.0228 =0.6803

5.

The annual family expenditure of 421 families in the main city is normally distributed with amean of Rs. 800,000 and a standard deviation of Rs.75, 000. If a family of the city is selectedrandomly. (iii) What is the probability that the annual expenditure of a family is in between Rs. 880000 and Rs. 960, 000?

Answer: P(8800000<X<960000)=P((8800000−800000) / 75000<(X−800000) / 75000<(9600000−800000) / 75000)=P(1.0667<z<2.1333) =P(z<2.1333)−P(z<1.0667)=0.9836−0.8570=0.1266

BUSINESS STATISTICS
CASE STUDY
(i) Fill in the blank details in table 2.
A = 2 x 2.5
=5
B = 8 x 12.5
= 100
C = 4 x 22.5
= 90
D = 24 + 3
= 27
E = 5 + 30 + 100 +105 + 90 + 82.5 + 97.5
= 510


(ii) Calculate the mean of the grouped data in the completed Table 2
above.
∑ 𝐹𝑋
𝑀𝑒𝑎𝑛 =
𝑛
510
=
30
= 17 𝑑𝑎𝑦𝑠

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