STAT 30100: Elementary Statistical Methods I

Department of Mathematical Sciences

School of Science, IUPUI

Project # 2
Spring 2015, Total 30 points

Name: __________________________________________________________

Due Date: 10/18/2015

PROBLEM # 1
(Answer this question by typing directly, or by writing by hand and then scanning it
into a pdf. A calculator is allowed. But do not use StatCrunch to do this
problem.)
A fast food restaurant just leased a new freezer and food fryer for three years. The
service contract for the freezer offers unlimited repairs for a fee of $125 a year plus
a $35 service charge for each repair needed. The restaurants research suggested
that during a given year 80% of these freezers need no repairs, 11% need to be
serviced once, 5% twice, 4% three times, and none required more than three
repairs.
Let x be the number of repairs this kind of freezer will need each year.
(a) Write the probability distribution of x.
x
P(x)
(b) Find the expected value of X and interpret the result. Show your work.

(c) Find the standard deviation of X. Show your work.

PROBLEM # 2
An unprincipled used-car dealer sells a car to an unsuspecting buyer, even
though the dealer knows that the car will have a major breakdown within the
next 8 months. The dealer provides a warranty of 45 days on all cars sold.
Let x represent the length of time until the breakdown occurs. Assume that x
is a uniform random variable with values between 0 and 8 months.
Now we will explore the following questions or concepts.
(a)

Find P(x 2)? (The answer for this part can be typed or written by
hand and scanned. But do not use Statcrunch.)

(b)

Using StatCrunch, generate 5000 samples of 50 observations each

from the uniform distribution. NO RESULTS TO BE REPORTED for
this part.
[ StatCrunch:
Data -> Simulate data -> Uniform (Rows: 5000,
Columns: 1, Uniform parameters a: 0, b: 8) -> Simulate ]
You will see a column named Uniform1 has been created on the StatCrunch

spreadsheet.

(c) Using StatCrunch, find P(x>2)?

[ StatCrunch:
Data -> Compute Expression
Under Expression: type Uniform1>=2
And under Column Label: type tally and then hit Compute!
Go to STAT->Tables->Frequency
Under Select Column(s): click on tally
And then hit Compute!
Now report the Relative Frequency corresponds to True ]

(d) Does your answer found in part (c) resonate with part (a)?
PROBLEM # 3
The height of adult women in the USA is normally distributed with mean 64.5 inches
and standard deviation 2.4 inches. Find the probability that a randomly chosen
woman is between 63 and 70 inches tall.
(Answer this question in the following two ways: Part A and Part B)
Part A: Answer the question by typing or by writing by hand and
scanning.
i) Formulate the problem. (Label the random variable x, state the parameters, and
write an appropriate probability statement)

ii) Sketch an appropriate normal distribution curve and shade the area under the
curve that corresponds to the problem in (i)

iii) Convert the x variable into z value.

iv) Put z value on the sketch in (ii), (writing z below x )

v) Use Standard Normal Table to find the desired probability.

Part B: Answer the question by Computer Simulation

4

Perform the following steps to answer this part and then complete the provided
table below.
Step 1.

Simulate data from normal distribution with mean 64.5 inches and
standard deviation 2.4 inches.
Open STATCRUNCH
Go to DATA->SIMULATE DATA-> NORMAL
Enter Rows:2000
Column: 1
Mean: 64.5
Std. Dev.: 2.4
You will see a column named Normal1 has been created on the
StatCrunch spreadsheet.

Step 2.

Calculate summary statistics of the column "Normal1" column to check

that it has mean of approximately 64.5 and standard deviation of
approximately 2.4. Also, create a histogram of the data in "normal1".
GO TO Stat->Summary Stats ->Columns
CLICK ON Normal1 and then Compute!
(include the summary table and histogram in your project write up)

z
Step 3.

x x 64.5

2.4

Calculate
for each row
GO TO
Data->Compute expression,
TYPE UNDER EXPRESSION (Normal1-64.5)/2.4
UNDER NEW COLUMN NAME zscore
You will see a column named zscore has been created on the
StatCrunch spreadsheet.

Step 4.

Calculate summary statistics of the column z-score to check that it has

mean 0 and standard deviation of 1 (as we have learnt in class that zscore has standard normal distribution with mean 0 and standard
deviation 1.
GO TO Stat->Summary Stats ->Columns
DOUBLE CLICK ON zscore and then Compute!
(include the summary table and histogram in your project write up)

Step 5.

Calculate the probability in Part A that P(* < z< ** )=?

Do NOT put * and **, instead use the values of *

and ** are found in PART A.
GO TO Data->Compute expression
TYPE UNDER EXPRESSION ifelse(zscore >=* and zscore <= **, 1,0)
Again, * and ** should be replaced with z-score values found in part (A)
UNDER NEW COLUMN NAME prob and then Compute!

Note that prob=1 indicates (

* zscore * *

, that is, z scores between * and

**);
and prob=0 indicates the opposite.

Step 6.

* zscore * *

To see answer of P(
)=?
GO TO Stats->Tables->Frequency
CLICK ON prob and then Compute!

Now report the Relative Frequency corresponds to 1]

The answer you have now should be the same or pretty close to the
answer you obtained in PART A.
(include the frequency table in your project)

PART B Answer Sheet

Using StatCrunch, display the summary statistics and histogram you created in Step 2
(based
on the data stored in the "Normal1" column created in Step 1)

Using StatCrunch, display the summary statistics and histogram you created in Step 4
(based
on the data stored in the Z-score column created in Step 3)

Report the results that you obtained in Step 6 on the StatCrunch output.

How close are the results from Part A and Part B? Briefly explain why there may be
some small differences. What might you do differently to improve your result from
Part B (to make it closer to the value found in Part A)?