Class Discusion Dsamplindistn

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ADDIS ABABA UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS


DEPARTMENT OF MANAGEMENT
STATISTICS FOR MANAGEMENT (MGMT 222)

Class Discussion Questions

Sampling distribution of the mean


1. Suppose that the mean expenditure per customer at a tire store is $85 with a
standard deviation of $ 9. If a random sample of 40 customers is taken, what
is the probability that the sample average expenditure per customer for this
sample will be $87 or more?
2. In 1991 the per capita income in country X, was $21,932. Suppose that a
random sample of 32 people in country X is selected. For a population
standard deviation of $6500 the sample average would be greater than what
value 73% of the time?
3. A statistics class has 80students.The mean score on the mid term exam was 72
and the standard deviation was12. Assume that a simple random sample of 20
students will be selected and the sample mean exam score X – will be
computed. What is the expected value and standard deviation of X – ?
Sampling distribution of the proportion
4. Suppose that 60% of the electrical contractors in a region use a particular
brand of wire. What is the probability of taking a random sample of size 120
from these electrical contractors and find that 0.5 or less use the brand of
wire?
5. If 10% of a population of parts is defective, what is the probability of
randomly selecting 80 parts and finding that 12 or more parts are defective?
Sampling distribution of the difference between two means
6. A soft drink bottler for filling beverage containers uses two machines. The
amounts dispensed by each machine have the following parameters;
Machine 1 machine 2
 1=350ml  2=355ml

 1=5ml  2 =7ml

A random sample of n1=100 container is to be chosen from machine 1 and


n2=80 from machine 2.
a. What is the probability that the sample mean amounts dispensed by
machine 1 is less than or equal to the sample mean amounts dispensed
by machine 2?
b. Determine the probability that the difference in sample means is
1.01ml or more
7. X-company claims that the mean annual repair bill for its rental cars is birr 290
and the standard deviation is birr 50. Y company also claims its mean annual
repair bill is birr 290 and the standard deviation is birr 50. if independent random
samples of 100 cars from each company are obtained, what is the probability that /x1-
x2/ exceeds birr 5?

8. A financial loan officer claims that the mean monthly payement for credit cards is
birr 80 with a variance of 1400 for single females and birr 80 with a variance of 1320
for single males. You take a random sample 100 females (population1) and an
independent random sample of 120(population2). What is the probability that the
sample mean for females will be at least birr 5 higher than the sample mean for
males?

Dagnachew

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