PROBLEM SET 3

Chapter 4 Individual work (These problems are like the problems in Sections 4.1 and 4.2).

1. A survey of 400 grad students in an International Business class were cross

classified in a two way table shown below. You may use the two way table to answer the
following questions. (3 points). You need to show your work to get credit
a. What is the probability of someone in the program having had work
experience?
A=WrkExp
Prob (a= Yes)= #(Yes grand total)/ #(Grand total)= 280/400 = 0/7
70% of students had work experience

b. What is the probability of being a male and having no work experience?

B= Gender
Prob (B= male & A=no) = #(B=male & A= no) / #(grand total) = 40/400 = 0.1
10% of students are male with no work experience.

c. What is the probability of being female or having work experience?

Want: Prob (A=Yes or B = Female) = 1 – Prob (B= male & A=no) = 1- 0.1 (from above problem) =
0.9
Want: Prob (A=Yes or B= female) = Prob (female) + Prob (yes) –Prob (yes & female)/ grand total
= 260 + 280 – 180 = 360 / 400 = 0.9
90% of students are female or have work experience.

d. Looking only at females, what is the probability of having work experience?

Want: Prob (A= yes | B= female) = #(A=Yes & B = Female) / #(grand total female) = 180/260=
0.69
69% of females have work experience.

e. Looking only at males, what is the probability of having work experience?

Want: (Prob A=yes | males) = #(A=Yes & B= male)/ #(grand total male) = 100/140 = 0.71 = 71%
71% of males have work experience.

f. Are gender and work experience independent?

P (A= yes | B=male or female) = 280/400 = 0.705 = 71%
P(A=male or female) = 400/400 = 1
Events are not independent since the probability of having work experience (0.705) is not equal to
the probability of having a gender (1).

WrkExp    
Grand
Gender No Yes Total
Female 80 180 260
Male 40 100 140
Grand Total 120 280 400
Chapter 6 Individual work (These problems are like the problems in Section 6.2).

Using a Normal Distribution to find probabilities: Use table E.2 in your text and
draw a sketch of what is required for each part of the problem.

2. Do problem (6 points) Remember, you need the sketches to get credit.

One of the questions in the survey was: How many years did you spend in the region you
were born in before moving away? For this question the mean was 20, the standard
deviation was 5, skewness was .06 and kurtosis was - .27.

a. Table E.2 can be used to find probabilities in a normal (bell-shaped) curve.

Why is it OK to use that table for this particular situation?
It is okay to use the table because the data has a normal distribution since the skewness and the
kurtosis is both between -1 and 1.

b. What is the probability that an individual spent 10 years or less in their

region?
X=years spent in region
Want Prob( X<= 10) =Prob (Z<?)= Norm.dist (10,20,5,TRUE) = 0.02275
About 2% of the
Z_10 = (10-20)/5= -2 use table to figure
Z score=0.02275 = 2%
There is a 2% probability someone spent 10 years or less in their region.

c. What is the probability that someone spent 36 or more years in their region?
36-20/5= 16/5 = 3.2
3.2 on z table = 0.99931 = 99%
There is a 99% chance someone spent 36 years or more in their region.

d. Would a person who spent 36 years in their region be an outlier for this data
set?
Yes because if a value is 3 or more standard deviations from the mean, it is considered an outlier.
So since 3 standard deviations is 15 (3*5) then any value above 35 (20+15) would be considered
an outlier so 36 is an outlier.

e. To be in the smallest 10 percent of number of years lived in a region, what

would be the corresponding number of years?
x-20/5= -1.28
solve for x
-1.28*5= -6.4 +20 = 13.6
To be in the smallest 10% of number of years lived in a region, they would have to have lived
there for 13.6 or less years.

f. Find two values equal distance from the mean such that 80% of all values fall
between.
x-20/5=1.29
solve for x
1.28*5= 6.4 +20 =26.4

or 20-13.6 = 6.4 +20 = 26.4

Since 13.6 accounts for the smallest 10% and is 6.4 years away from the mean of 20 then by
adding 6.4 to 20 which results in 26.4, you get the upper 10% so 80% of the values fall between
13.6 and 26.6 years.