Question 1

a) Each row corresponds to a different observation, i.e. each row represents

the data of each of the 100 employees.
There is 1 continuous variable (C2). Monthly salary in dollars is a
measured amount. There are various units of measurement for money
(dollars and cents) and also, observations for salary are listed to two
decimal points. Therefore it is a continuous variable. There are 3 nominal
variables (C1, C5, C6).There are

b) The histogram is unimodal with a slight positive skew.

Histogram of Monthly Salary

16
14

Frequency

12
10
8
6
4
2
0

2500

3000

3500

4000
4500
Monthly Salary

c)
Females
Lower median
Slightly larger interquartile range
Slightly negatively skewed
No outliers
Smaller range
Lower maximum value
Lower minimum value

5000

5500

Males
Higher median
Slightly smaller interquartile range
Positively skewed
Three outliers
Larger range
Higher maximum value
Higher minimum value

d)

The graph shows a linear relationship with a positive correlation.

Correlation can be expected to be positive and lie between 0.5 and 1,
closer to 0.5.
e) Covariance between monthly salary and length of service is 1654.5.

Correlation=

f)

covariance
the product of standard deviations

cov (x , y)
x y

1654.5
445327.05 17.26

0.59677

(to 5 sig. fig.)

A correlation of approximately 0.6 is confirmed by the scatterplot from (d). It

shows that there is a noticeable positive linear relationship between monthly
salary and length of service.
g)

Scatterplot of Monthly Salary vs Length of Service

6000

Gender
Female
Male

Monthly Salary

5000

4000

3000

2000
5

10

15
20
Length of Service

25

30

The claim is true. From this scatterplot it can be clearly seen that both
genders have a more distinct and more pronounced positive linear
relationship. The linear trend for males is parallel and consistently higher
than the linear trend for females.

h)

Empirical CDF of Monthly Salary

100

Percent

80

60

40

20

0
2000

i.

3000

4000
Monthly Salary

5000

6000

27.1% (to 1 d.p.) of employees have a monthly salary less than

$3500.
ii. 5% of employees have a salary over $4765.20 (to the nearest 10
cents).

Question 2
a) Table of working:
Clerical
Technical

Male
0.55*0.5
0.6-0.55*0.5
0.6

Female
(1-0.55)*0.5
0.5-(0.60.55*0.5)
0.4

0.5
0.5
1

Table of probabilities:
Clerical
Technical

Male
0.275
0.325
0.6

Female
0.225
0.175
0.4

0.5
0.5
1

Therefore, the probability that an employee is a clerical staff member and is

male is 0.275.
b) P(clerical staff|male) = P(clerical & male) / P(male)
= 0.275/0.6
= 0.4583 (to 4 d.p.)
Therefore, the probability that the employee is a clerical staff member given that
they are known to be male is 0.4583.
c) Independence test:
P(AB) = P(A) * P(B)
P(clerical & male) = 0.275
P(clerical) * P(male) = 0.5 * 0.6
= 0.3
P(clerical & male) P(clerical) * P(male)
Therefore, gender and job classification are not independent.

d)

i. There were 53 clerical staff members included.

ii. There were 58 male staff members included.
iii. There were 32 male, clerical staff members included.
e) Y would be a nominal random variable. Since Y is the variable of an
individual, it has only one trial, giving it a Bernoulli distribution (and not a
binomial distribution).
f)
MTB > Set C1
DATA>
1( 1 : 100 / 1 )1
DATA>
End.

g) MTB > Set C1

DATA>
1( 1 : 100 / 1 )1
DATA>
End.
MTB > Random 100 C2;
SUBC>
Bernoulli 0.5.

X is a discrete count variable which can take integer values from 0 to 100.
X~Bin(n=100, p=0.5).
h)
i) E(X) = np
= 100*0.5
= 50
Expected value is 50.
= np(1-p)
= 100*0.5*(0.5)
=5
Standard deviation is 5.
j)
MTB > Describe C2;
SUBC>
Sums.

Descriptive Statistics: C2
Variable
C2

Sum
43.0000

The observed value of X (the total number of the group who are classified as
technical) is 43 (since technical jobs were coded as 1 and clerical jobs were
coded as 0).
k)
i.

Let the total number of the sample group who are classified as
clerical be X.
Observed value of X from spread sheet values is 57.
P(X<57) = P(X56)
MTB > CDF 56;
SUBC>
Binomial 100 0.5.

Cumulative Distribution Function

Binomial with n = 100 and p = 0.5
x
56

P( X <= x )
0.903326
Therefore, probability of that there would have been less than 57 clerical
staff in a sample of 100 is 0.903326.

ii. Let the total number of the sample group who are classified as
clerical be X.
Observed value of X from spread sheet values is 57.
P(X>57) = 1 - P(X57)

MTB > CDF 57;

SUBC>

Binomial 100 0.5.

Cumulative Distribution Function

Binomial with n = 100 and p = 0.5
x
57

P( X <= x )
0.933395

P(X57) = 0.933395
P(X>57) = 1 0.933395
= 0.066605
iii.
MTB > PDF 57;
SUBC>
Binomial 100 0.5.

Probability Density Function

Binomial with n = 100 and p = 0.5
x
57

P( X = x )
0.0300686

Therefore probability of there being exactly 57 clerical staff members in a

sample of 100 is 0.0300686.

Question 3
i.
R
2
3
4
5
6
7
8
9
10
11
12
Total

= E(X) =

R is a discrete random variable.

P(R)
1/36
1/18
1/12
1/9
5/36
1/6
5/36
1/9
1/12
1/18
1/36
1

xP(x )
all x

= 2*1/36 + 3*1/18 + 4*1/12 + 5*1/9 + 6*5/36 + + 10*1/12 +11*1/18 +

12*1/36
= 7
Therefore the mean is 7.

V(X) = =

x 2 P ( x )2
all x

V(X) = 2*2*1/36 + 3*3*1/18 + + 11*11*1/18 + 12*12*1/36 7*7

= 47.833
ii. First roll = 5
Second roll = 6
Observed value of R = 11
iii. Probability density function:
F(M) = 1/40
where 40 M 80

Distribution Plot
Uniform, Lower=40, Upper=80
0.025

Density

0.020

0.015

0.010

0.005

0.000

40

50

60
M

70

Mean = E (M) = (a+b)/2

= (40+80)/2
= 60
V(M) = (b-a)^2 / 12
= (80-40)^2 / 12
= 133.33
iv. Mean of amount received = E(M * R)
= R * E(M)
= 11 * 60
Variance of amount received = V(R*M)
= R^2 * V(M)

80

= 11^2 * 133.33
= 16133.33
v. Mean of Aunt Pleasants gift = E(2M)
= 2E(M)
= 2 * 60
= 120
Variance of Aunt Pleasants gift = V(2M)
= 4V(M)
= 4 * 133.33
= 533.33
vi. Mean of amount received = E(M*(R+1))
= (R+1)*E(M)
= 12*60
= 720
Variance of amount received = V(M*(R+1))
= (R+1)*V(M)
= 12*133.33
= 1600.00