AK/ADMS 2320.3.

0 2 of 23
MIDTERM EXAMINATION FALL 2006

Question 1 (13 marks)

The following is the percent change in net income from 2002 to 2003 for a
sample of 12 construction companies in located in Southern Ontario.

5 1 -10 -6 5 0 7 8 2 5 -1 8

Please show all of your calculations in the spaces provided below and
place your answers in the appropriate boxes.

a b c d e f g
Mean Median Mode Variance Standard Coefficient M.A.D
deviation of variation

. .- " .
a) Find the Mean.

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MIDTERM EXAMINATION FALL 2006

b) Find the Median.

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c) Find the Mode.

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d) Find the Variance.

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MIDTERM EXAMINATION FALL 2006

e) Find the Standard Deviation.

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f) Find the Coefficient of Variation.

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g) What is the M.A.D?

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AK/ADMS 2320.3.0 5 of 23
MIDTERM EXAMINATION FALL 2006

Question 2 (12 marks)

A calculus instructor uses computer aided instruction and allows students to take
the midterm exam as many times as needed until a passing grade is obtained.
Following is a record of the number of students in a class of 20 who took the test
each number of times.
Students Number of tests
10 1
7 2
2 3
1 4
a) Use the relative frequency approach to construct a probability distribution and
show that it satisfies the required conditions.

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AK/ADMS 2320.3.0 6 of 23
MIDTERM EXAMINATION FALL 2006

b) Find the expected value of the number of tests taken.

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c) Compute the variance.

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d) Compute the standard deviation.

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AK/ADMS 2320.3.0 7 of 23
MIDTERM EXAMINATION FALL 2006

Question 3 (16 marks)

In a recent news report, a study said that it found that 56% of all university business
students had cheated in some way. This compares to another study showing that 53%
of all university students had cheated. Suppose that at a particular university,
business students are 20% of the students enrolled.

Required:

a) What is the probability that a student chosen at random is a non-business

student and has cheated?

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b) What is the probability that a student chosen at random is a business

student or has cheated?

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MIDTERM EXAMINATION FALL 2006

c) What is the probability that a student chosen at random has not cheated,
given that they are a non-business student?

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d) What is the probability that a non-business student chosen at random has

cheated?

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e) What is the probability that a student caught cheating is a business student?

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MIDTERM EXAMINATION FALL 2006

f) A student has just finished a polygraph (lie-detector) test that confirms that
she has never cheated. What is the probability that she is a non-business
student?

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g) Is cheating independent of whether or not a student studies business?

Support your answer appropriately.

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h) If there are 400 students in a first year sociology class with none of them being
business students, what is the expect number of cheaters? What is the
standard deviation of the number of cheaters?

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AK/ADMS 2320.3.0 10 of 23
MIDTERM EXAMINATION FALL 2006

Question 4 (13 marks)

Purchasing magazine reported the results of a survey in which buyers were asked a
series of questions with regard to Internet usage. One question asked was how they
would use the Internet if Security and other issues could be resolved. Seventy-eight
percent said they would use it for pricing information, seventy-five percent said they
would use it to send purchase orders, and seventy percent said they would use it for
purchase order acknowledgements. Assume that these percentages hold true for all
buyers. A researcher randomly samples 10 buyers and asks them how they would
use the Internet if security and other issues could be resolved.

a) What is the probability that exactly 7 of these buyers would use the Internet
for pricing information?

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b) What is the probability that all of the buyers would use the internet to send
purchase orders?

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MIDTERM EXAMINATION FALL 2006

c) What is the probability that more than 6 would use the Internet for purchase
order acknowledgments?

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d) Find the expected value and the standard deviation of the buyers who
would use the Internet for purchase order acknowledgments in this
sample.

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AK/ADMS 2320.3.0 12 of 23
MIDTERM EXAMINATION FALL 2006

Question 5 (13 marks)

An executive at Westinghouse Canada drives from his home in the suburbs near
Toronto to his office in the centre of the city. His driving times can be approximated
by the normal distribution with a mean of 45 minutes and a standard deviation of 8
minutes.
a) What percentage of days will it take him 40 minutes or less to drive to work?

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b) What percentage of days will take him 35 minutes or more to drive to work?

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AK/ADMS 2320.3.0 13 of 23
MIDTERM EXAMINATION FALL 2006

c) Some days there will be accidents or other delays, so the trip

will take longer than usual. How long will the longest 10% of
this trip take?

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AK/ADMS 2320.3.0 14 of 23
MIDTERM EXAMINATION FALL 2006

Question 6 (13 marks)

A production process for steel rods used to reinforce concrete is known to produce
rods whose lengths have a variance of 64 cm2. The production machinery has been
set to produce rods with a mean of μ= 6 metres (600 centimetres, cm), in length.
These rods are tied into bundles of 40 for shipment to construction sites.

a) What is the probability that the average length of a randomly selected bundle
is less than 598 cm?

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Parts of question 6 missing.
Multiple choice omitted.