MBA 510 Problem Set I - Essay Example

b. Compute the mean deviation. 3.24 square root ((N-Mean)^2+(N1-Mean)^2./n)= Square root (42/4)= 3.74c. Compute the standard deviation. 3.74 square root ((N-Mean)^2+(N1-Mean)^2./n-1)= Square root (42/3)= 3.74 b. Lind Chapter 5: Exercises 8, 668. A sample of 2,000 licensed drivers revealed the following number of speeding violations.Number of Violations Number of Drivers0 1,9101 462 183 124 95 or more 5Total 2,000a. What is the experiment The experiment is the gathering of the data setb.

List one possible event A driver has less than two speeding violationsc. What is the probability that a particular driver had exactly two speeding violations18/2000 = .009d. What concept of probability does this illustrateRelative frequency66. A survey of undergraduate students in the School of Business at Northern University revealed the following regarding gender and majors of the students:MajorGender Accounting Management Finance TotalMale 100 150 50 300Female 100 50 50 200Total 200 200 100 500a.

What is the probability of selecting a female student200/500 = .4b. What is the probability of selecting finance or accounting major300/500 = .6c. What is the probability of selecting a female or an accounting major Which rule of addition did you apply250/500 = .5 The addition rule of independent eventsd. Are gender and major independent Why No, the data is dependent upon gendere. What is the probability of selecting an accounting major, given that the person selected is male100/300 = .33f.

Suppose two students are selected randomly to attend a lunch with the president of the university. What is the probability that both of those selected are accounting majorsAcct major = .4 Both acct major = .4*.4 =. 68. The American Automobile Association checks the price of gasoline before many holiday weekends. Listed below are the self-service prices for a sample of 15 retail outlets during the May 2003 Memorial Day weekend in the Detroit, Michigan, area. 70. A recent article suggested that if you earn , 25, 000 a year today and the inflation rate continues at 3 percent per year, you'll need to make 33,598 in 10 years to have the same buying power.

You would need to make 44,771 if the inflation rate jumped to 6 percent. Confirm that these statements are accurate by finding the geometric mean rate of increase. 38. The accounting department at Weston Materials, Inc., a national manufacturer of unattached garages, reports that it takes two construction workers a mean of 32 hours and a standard deviation of 2 hours to erect the Red Barn model. Assume the assembly times follow the normal distribution. 44. The number of passengers on the Carnival Sensation during one-week cruises in the Caribbean follows the normal distribution.

The mean number of passengers per cruise is 1,820 and the standard deviation is 120. 60. In establishing warranties on HDTV sets, the manufacturer wants to set the limits so that few will need repair at manufacturer expense. On the other hand, the warranty period must be long enough to make the purchase attractive to the buyer.