Rev 5

Dtd
1/8/2016

1) The distribution of IQ scores measured for 100 students in

a test is as follows:
IQ

80 - 90

90 100
20

100 110
20

110 120
15

120 130
15

130
140
20

Number 10
of
Students
Find Arithmetic Mean, Median, First and Third Quartiles and 90 th
percentile
2) Given below is the frequency distribution of the sundry
debtor status for a sample of 50 accounts for a supplier of
goods, before and after introduction of incentive scheme
for prompt payment.
Number of days
Number of Accounts
Before
After
Outstanding
31 40
8
10
41 50
26
22
51 60
20
15
61 70
10
8
71 80
6
5
Find out the extent to which the incentive scheme has
been successful. Also, has the variability in number of
days outstanding been reduced?
3) The Mean and s.d. of lives of tyres manufactured by two
factories of the Durable Tyre Company, making 50000
tyres annually, at each of the two factories, are given
below. Calculate Mean and standard deviation of all the
100000tyres produced in a year.
Group
Mean (000 kms)
S.D. (000 kms)
1
60
8

2
55
7
---------------------------------------------------------------------------------4) Out of 100 students in an examination, 90 secured
distinction in Statistics, 80 in Economics and 95 in at least
one of the two subjects. A student is selected at random.
Find the probability that he secured distinction in :
a) Both economics and statistics
b) Economics but not in Statistics
c) Economics, irrespective of securing or not securing
distinction in statistics
d) Statistics, irrespective of securing or not securing
distinction in economics
e) Statistics, given that he did not secure distinction in
economics
f) Economic, given that he did not secure distinction in
Statistics
5) In a box there are two white and four black balls. What
is the probability that both of the two balls drawn one
after the other, are white?
6) A restaurant is experiencing discontentment among the
customers. It analyses that there are three factors
responsible, which are Food Quality, Service Quality and
Interior Decor. By conducting the analysis it assesses that
probabilities of importance given to these three factors
are 0.40, 0.35 and 0.25 respectively. By conducting a
survey among customers, it also evaluates probabilities of
a customer going away discontented on account of these
factors as 0.6, 0.8 and 0.5 respectively. With this
information restaurant wants to know if the customer is
discontented, what are the probabilities that it is so due to
food, service or interior decor.

7) The probability that an employee will get an

occupational disease is 20% in a firm having five
employees. What is the probability that
i) None of the employee gets the disease
ii) Exactly two will get the disease
iii) More than four will contact the disease
8) A random sample of five sachets of coconut oil was
examined and two were found to be leaking. A wholesaler
receives 625 packets, each containing five sachets. Find
the expected number of packets to contain exactly one
sachet leaking.
9) One percent of bulbs manufactured by a firm are
expected to be defective. A carton contains 200 bulbs.
Find the probability that the carton contains 3 or more
defective bulbs.
10) The following data relates to the number of mistakes
in each page of a book containing 180 pages.
No of mistakes per
page
No. Of pages

Total

138

161

69

27

400

Fit a Poisson distribution to the data. Obtain the

theoretical frequencies.
11) Mean life of electric bulbs produced by a company is
1500 hours with a standard deviation of 300 hours.
Assuming that the bulbs follow normal distribution, what
is the probability that a randomly selected bulb will
i) Fail within 1200 hours?
ii) Survive between 1350 and 1650 hours?
iii) Survive beyond 1950 hours?
12) As an incentive for customers to spend more money
on its credit card, a bank has decided to award high
spending customers with an offer of free stay of three
days at one of the holiday resorts in India. However, it

does not want to give the offer to more than 1 % of

customers. If the mean spending per customer is Rs
20000 with a standard deviation of Rs 5000, what amount
of spending the bank should specify as a cut-off? However,
at the end of first month it was found that 5 % of
customers qualified for the offer. What could have
happened? Assuming that the standard deviation has not
changed, calculate the new mean spending per customer;
and assuming the mean has not changed, calculate the
standard deviation.
13) The length of time between breakdowns of a machine
in a factory
follows negative exponential distribution with a mean time
of 10 days.
a) What is the standard deviation of this distribution?
b) The machine had a shut down on a day and was set
right. What is the probability that the next breakdown
would occur within the next 14 days?
c) What is the probability that the machine would run for
more than 18 days without breakdown?
d) What is the probability that the number of breakdowns
in a month would be at most two?
14) For assessing the number of monthly transactions in
credit card issued by a bank, transactions in 25 cards were
analysed. The analysis revealed an average of 7.4
transactions and sample standard deviation of 2.25
transactions. Find confidence limit for the monthly number
of transactions by all the credit card holders of the bank.
15) An Insurance company sells foreign travel policy to
those going abroad. The company is reputed to settle the
claims within a period of two months. However the new
CEO of the company came to know about delay in settling
the claims. He therefore ordered the concerned officer to
take a sample of 100 claims and report the proportion of
cases which were settled within 2 months. The CEO

received proportion as 0.6. What are the 95 % confidence

limits for such proportion?
16) In order to improve the quality of items produced by a
production process, sample of items are inspected and
number of defects in each item is recorded. One such
example is the number of missing rivets on the body of a
bus. If the average number of missing rivets in a sample of
bus bodies is found to be 25, what is the 95 % confidence
interval for the number of missing rivets?
17) A statistician chooses 27 randomly selected dates, and
when examining the occupancy records of a particular
motel for those dates, finds a standard deviation of 5.86
rooms rented. If the number of rooms rented is normally
distributed, find the 95% confidence interval for the
population standard deviation of the number of rooms
rented.
18) A company wants to decide the average time to
complete a certain job. The past records show that s.d. of
the completion time for all the workers in the company
has been 10 days and there is no reason to believe that
this would have changed. However the company feels that
because of the procedural changes, the mean would have
changed. Determine sample size so that the company may
be 95 % confident that the sample average remains within
2 days of the population mean.
19) A company believes that it holds about 30 % share of
the colour tv market in a city The company wishes to get a
precise estimate of its share within a margin of error of 2
%. How large a number of households should be surveyed
to get the desired estimate with a confidence of 95%. If
the cost of contacting one household is Rs 20 and budget
for survey is Rs 10000, then what is the accuracy that can
be obtained at the same confidence level?