Mid Term Examination Spring 2021

Course: STATISTICAL INFERENCE Date: 7th April, 2021

Teacher Name: ASIF SUMEER Duration: 1200pm to 1159pm

Semester: 5th & 2nd (2-years) Marks: 20

3
Student ID: _______________ Program: BBA

Instructions:
-Read all questions carefully.
- All questions are compulsory.
- Show all necessary calculations.
- Use the separate graph paper sheet if necessary.
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Q.1. A bag contains 8 red, 5 green, 6 blue and 4 white beads. Seven beads are drawn at random. What is
the probability that beads are:

(i) 4 red, 2 green and 1 is blue (ii) 2 green, 3 blue and 2 white (iii) at least 6 are red (iv) All are blue (v)
At most 5 are green.

Q.2. Ten is the average number of oil tankers arriving each day at a certain port city. The facilities at the
port can handle at most 10 tankers per day. What is the probability that on a given day

(a) Tankers have to be turned away?

(b) Tankers have to be facilitated?

(c) No truck arrived at the port?

(d) Exactly 8 trucks have to be facilitated?

Q.3. A major bank issues credit cards under the name VISA CARD. It has been determined that, on average,
40 percent of all credit card accounts are paid in full following the initial billing. That is, for any given
month, 60% of all accounts will not incur interest charges. If a sample of five accounts is selected at
random, estimate the probability that:

(a) None of the six will have incurred interest charges for their last billing.

(b) All will have incurred.

(c) At most 3 will have incurred.

(d) At least 4 will have incurred.

Q.4. The local Police have instituted a roadblock program for checking the sobriety of drivers. Cars are
selected at random and drivers checked for signs of excessive drinking. if it is suspected that a driver
has had too much to drink, standard tests of sobriety are administered. In reviewing the success of
 the program, a Police Lieutenant has compiled data of 150 roadblock efforts. The given table
summarizes the findings:

Number of 0 1 2 3 4 5 6 7 8
Drunken Drivers

Frequency 8 20 26 28 26 16 14 10 2

(a) Construct the probability distribution for this study.

(b) Draw a histogram for the distribution.

(c) What is the probability a roadblock effort will identify any drunken drivers? Five or more?

Q.5. Let X be the random variable and has the following probability distribution:

X: 1 5 9
P(X) : A B C

Where A, B, C are any constants. It is also known that P(X < 4) = P(X > 4) and P(X ≤ 5) = 2P(X > 5). Find
the values of A, B and C.

Q.6. An insurance sales person feels the size of the home insurance policy is closely related to the yearly
family income. Based on the following figures:

Year Income Rs(000 12 15 17 20 20 23 25 30 36

Size of Policy Rs(0000) 15 15 20 25 23 30 34 40 45

(a) Determine the size of the policy whose yearly income is Rs. 45000.

(b) If a person has a policy of Rs. 70000, what is the expected yearly income?

(c) What is the COD of the above data in percentage?