Chapter 6

Assignment

Adriana Uson
Chapter 6

Exercise 6.74

An industrial sewing machine uses ball bearings that are targeted to

have a diameter of 0.75 inch. The lower and upper specification limits under
which the ball bearing can operate are 0.74 inch and 0.76 inch, respectively.
Past experience has indicated that the actual diameter of the ball bearings is
approximately normally distributed with a mean of 0.753 inch and a standard
deviation of 0.004 inch. What is the probability that a ball bearing will be:

a.) Between the target and the actual mean?

27.34% of the ball bearing will be between the target and actual
mean.

Probability for a Range

From X Value 0.753
To X Value 0.75
Z Value for 0.753 0
Z Value for 0.75 -0.75
P(X<=0.753) 0.5000
P(X<=0.75) 0.2266
P(0.753<=X<=0.75) 0.2734

b.) Between the lower specification limit and the target?

22.61% of the ball bearing will be between the lower specification

limit and the target.

Probability for a Range

From X Value 0.74
To X Value 0.75
Z Value for 0.74 -3.25
Z Value for 0.75 -0.75
P(X<=0.74) 0.0006
P(X<=0.75) 0.2266
P(0.74<=X<=0.75) 0.2261

c.)Above the upper specification limit?

4% of the ball bearing will be above the upper specification limit.

Probability for X >

X Value 0.76
Z Value 1.75
 P(X>0.76) 0.0401

d.) Below the lower specification limit?

0% will be below the lower specification limit.

Probability for X <=

X Value 0.74
Z Value -3.25
P(X<=0.74) 0.000577

e.) Above which value in diameter will 93% of the ball

bearings be?

Above 0.7589 diameters will 93% of the ball bearings be.

X= µ+Z(sd) X= 0.753 +1.48 (0.004)

X= 0.75892

Find X and Z Given Cum. Pctage.

Cumulative Percentage 93.00%
Z Value 1.475791
X Value 0.758903

If a random sample of 25 ball bearings is selected, what is

the probability that:

f.) The sample mean will be between the target and the
population mean of 0.753?

49.99% of the sample mean will be between the target and the
population mean.

Probability for a Range

From X Value 0.753
To X Value 0.75
Z Value for 0.753 0
Z Value for 0.75 -3.75
P(X<=0.753) 0.5000
P(X<=0.75) 0.0001
P(0.753<=X<=0.75) 0.4999
g.) The sample mean will be between the lower specification
limit and the target?

0.00001 or 0% that the sample mean will be between the lower

specification limit and the target.

Probability for a Range

From X Value 0.74
To X Value 0.75
Z Value for 0.74 -16.25
Z Value for 0.75 -3.75
P(X<=0.74) 0.0000
P(X<=0.75) 0.0001
P(0.74<=X<=0.75) 0.0001

h.) The sample mean will be above the upper specification

limit?

The probability that the sample mean will be above the upper
specification limit is 0.

Probability for X >

X Value 0.76
Z Value 8.75
P(X>0.76) 0.0000

i.) The sample mean will be below the lower specification limit?

The probability that the sample mean will be below the lower
specification limit is virtually zero.

Probability for X <=

X Value 0.74
Z Value -16.25
P(X<=0.74) 1.117E-59

j.) 93% of the sample mean diameters will be above what

value?

93% will be above 0.754181.

Find X and Z Given Cum. Pctage.

Cumulative Percentage 93.00%
Z Value 1.475791
X Value 0.754181
Exercise 6.80

Mutual funds specializing in telecommunications companies lost an

average of 18.4% in the first quarter of 2002. Assume that the distribution of
returns in the first quarter of 2002 for mutual funds specializing in
telecommunications companies is fairly symmetrical with a mean of – 18.4%
and a standard deviation of 20 %. If random samples of 25
telecommunications stock funds were selected:

a.) Find the probability that a sample mean return is less than
-20%

34.45% of the sample mean will return less than -20%

Probability for X <=

X Value -0.2
Z Value -0.4
P(X<=-0.2) 0.3445783

b.) Find the probability that a sample mean return is less than
– 25%

4.9% of the sample mean return is less than -25%

Probability for X <=

X Value -0.25
Z Value -1.65
P(X<=-0.25) 0.0494715

c.) Find the probability that a sample mean return is above

0.0%

0.000 is the probability that a sample mean return is above 0.0%

Probability for X >

X Value 0
Z Value 4.6
P(X>0) 0.0000

d.) 80% of the sample mean returns are less than what value?
 80 % of the sample mean returns are less than -15.03

Find X and Z Given Cum. Pctage.

Cumulative Percentage 80.00%
Z Value 0.841621
-
X Value 0.150335

e.) 90% of the sample mean returns are less than what value?

90% of the sample mean returns are less than 0.1327

Find X and Z Given Cum. Pctage.

Cumulative Percentage 90.00%
Z Value 1.281552
-
X Value 0.132738

f.) If random samples of size 4 were selected, can you use the
methods discussed in this chapter to answer a-e?

The methods used cannot be used. There must be an additional

assumption that the mutual funds data are normally distributed.