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Problem Set - 3

The document contains 11 problems involving calculations using normally distributed data. The problems involve finding probabilities, determining cutoff scores, and calculating bounds based on standard deviations from the mean. Many of the problems relate to manufacturing processes and use normal distributions to model attributes like computer assembly times, bag weights, and train speeds.

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Saurabh Kaushik
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181 views

Problem Set - 3

The document contains 11 problems involving calculations using normally distributed data. The problems involve finding probabilities, determining cutoff scores, and calculating bounds based on standard deviations from the mean. Many of the problems relate to manufacturing processes and use normal distributions to model attributes like computer assembly times, bag weights, and train speeds.

Uploaded by

Saurabh Kaushik
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem Set – 3

From the textbook “Statistics for Business and Economics” by Anderson et al.:

1) Grear Tire Company Problem (Solved Case)


2) Questions 6.8 to 6.25

1) The amount of time to assemble a computer is normally distributed with a mean of 50 minutes
and standard deviation of 10 minutes. Find the probability that the computer is assembled
between 45 and 60 minutes.

2) Mensa is an organization whose members possess IQs that are in the top 2% of the population.
It is known that IQs are normally distributed with a mean of 100 and standard deviation of 16.
Find the minimum IQ needed to be a Mensa member.

3) The annual rate of return on a mutual fund is normally distributed with a mean of 14% and a
standard deviation of 18%. What is the probability that

i. The fund returns more than 25% next year?


ii. The fund loses money next year?

4) Suppose that weights of bags of potato chips coming from a factory follow a normal
distribution with mean 12.8 ounces and standard deviation 0.6 ounces. If the manufacturer wants
to keep the mean at 12.8 ounces but adjust the standard deviation so that only 1% of the bags
weigh less than 12 ounces, how small does she need to make that standard deviation?

5) Suppose that combined verbal and math SAT scores follow a normal distribution with mean
896 and standard deviation 174. Suppose further that Peter finds out that he scored in the top
3% of SAT scores. Determine how high Peter’s score must have been.

6) The lifetime of TVs produced by a company are normally distributed with a mean of 75 months
and a standard deviation of 8 months. If the manufacturer wants to have to replace only 1% of
the TVs, what should its warranty be?

7) Every day a bakery prepares its famous cup-cakes. The daily demand for cakes is normally
distributed with a mean of 850 and a standard deviation of 90. How many cup-cakes should the
bakery make so that the chances of running short on any day are not more than 20%.
8) Heights of adult women in the United States are normally distributed with a population mean
of 63.5 inches and a population standard deviation of 2.5. What is the probability that a randomly
selected woman has a height of 68.5 inches or more?

9) Suppose that the height of a 25 year old man is a normal random variable with mean 71 inches
and variance 6.25 inches. What percentage of men in 6-footer club is over 6 foot 5 inches?

10) In a certain course, the students are graded on a `normal curve'. For example, students within
0.5 standard deviations of the mean receive a C; between 0.5 and 1.0 standard deviations above
the mean receive a C+; between 1.0 and 1.5 standard deviations above the mean receive a B;
between 1.5 and 2.0 standard deviations above the mean receive a B+, etc. The class average in
an exam was 60 with a standard deviation of 10. Calculate the bounds for a B grade and the
percentage of students who will receive a B grade, if the marks are actually normal distributed.

11) Suppose that the average speed of passenger trains are normally distributed with a mean
average speed of 88 miles per hour and a standard deviation of 6.4 miles per hour.
(a) What is the probability that a train will average less than 70 miles per hour?
(b) What is the probability that a train will average more than 80 miles per hour?
(c) What is the probability that a train will average between 90 and 100 miles per hour?

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