QUESTION 1 (15 marks)

1. A study in Batu Pahat General Hospital's on patient account division has

compiled data on the age of accounts receivables. The data collected indicates
that the age of the accounts follows a normal distribution with mean 28 days and
a standard deviation of 8 days. Ahmad would like to know the probability of the
accounts between 20 and 40 days old and the probability of the accounts which
less than 30 days old. Shows the calculation of both problems. (7 marks)

2. The length of time for long-distance telephone calls from Malaysia to Thailand
has a mean of 16 minutes and a standard deviation of 4 minutes. Suppose a
sample of 35 telephone calls is used to reflect on the population of all long-
distance calls. Calculate the chance that the average of the 35 telephone calls is
between 17 and 18 minutes. (8 marks)

QUESTION 2 (15 marks)

1. Bella’s aims to construct a confidence interval for the mean of a normal

population with known standard deviation. List three factors that could help her in
reducing the size of the margin error. Then, she collects a random sample of size
from a population and from the data collected she compute a 95% confidence
interval for the mean of the population. Based on the same dataset, state one
factor that could produce a new confidence interval with a larger width (Hint:
Larger margin of error). (5 marks)

2. A random sample of thirty firms dealing in wireless products was selected to

determine the proportion of such firms that have implemented new software to
improve productivity. It turned out that eight of the thirty have implemented such
software. Compute a 95% confidence interval on p, the true proportion of such
firms that have implemented new software. In other situation, suppose there is
concern about whether or not the point estimate of p = 8/30 is accurate enough
because the confidence interval around p is not sufficiently narrow. By using p as
your estimate of p, calculate how many companies would need to be sampled to
have a 95% confidence interval with a width of only 0.05. (10 marks)

QUESTION 3 (15 marks)

1. Aminah wishes to perform the hypothesis testing versus with. The sample size
25 was obtained independently from a population with standard deviation 10.
State the distribution of the sample mean given that the null hypothesis is true
and find the critical value, then calculate the values of the sample mean if she
 rejects the null hypothesis. Finally, compute the p-value, if the sample mean is -
2. (10 marks)
2. In one of the hypothesis study, Robin considers increasing the alpha level. Briefly
explain the effect on the Type I and Type II errors together with the probability
whether he should reject the null hypothesis. (5 marks)

QUESTION 4 (15 marks)

Dyson Company in Senai Johor plans to produce a new hair product known as
Dyson Supersonic. The suppliers for the company are Company A and Company B
found that 1% and 2% defective of 200 and 300 items respectively. Arrange
appropriate hypothesis testing to investigate whether Company B is better by using a
0.05 level of significance. (15 marks)