FACULTY OF BUSINESS ADMINISTRATION

Student : Nemal farhat Reg no : 41690

Subject: Business Statistics

Instructor: Dr. Nadeem Alam Khan S. Haider Abbas Naqvi S. Safdar Hussain

Assignment# 2

Topics to be covered:
Normal and Standard Normal Distribution, Sampling Distribution, Central
Limit Theorem
Q#1: Tompkins Associates reports that the mean clear height for a Class A warehouse in
the United States is 22 feet. Suppose clear heights are normally distributed and that
the standard deviation is 4 feet. A Class A warehouse in the United States is randomly
selected.
a. What is the probability that the clear height is greater than 17 feet?
We need to find P (X >17).
Normalize It,
i.e; P (X >17) = P { X- E(x)/ sd(x) > [17 – E(x)]/ sd (x) }
z>[17−22]
P (X >17) = P { }
4
P (X >17) = P (Z > - 1.25)
P (X >17) = 1- P (Z < - 1.25) P (Z < - 1.25) gotten from standard
normal table
P (X >17) = 1 – 0.1057
P (X >17) = 0.8943

b. What is the probability that the clear height is less than 13 feet?
i.e; P (X < 13) = P { X- E(x)/ sd(x) < [13 – E(x) ]/ sd (x) }
z<[13−22]
P (X < 13) = P { }
4
P (X < 13) = (Z < - 2.25) P (Z < - 2.25) gotten from standard normal
table
P (X < 13) = 0.0122

c. What is the probability that the clear height is between 25 and 31 feet?
P (25 < X < 31) = P (X >17) = P { 25 - E(x)/ sd (x) > [31 – E(x)]/ sd (x) }
 [25−22] [31−22]
P (25 < X < 31) = P { <z< }
4 4
P (25 < X < 31) = P(0.75 < z< 2.25)
P (25 < X < 31) = P( z < 2.25 ) - p ( z < 0.75)
P (25 < X < 31) = 0.9878 – 0.7734
P (25 < X < 31) = 0.2144

Q#2:
Data accumulated by the National Climatic Data Center shows that the average wind
speed in miles per hour for St. Louis,Missouri, is 9.7. Suppose wind speed measurements
are normally distributed for a given geographic location. If 22.45% of the time
the wind speed measurements are more than 11.6 miles per hour, what is the standard
deviation of wind speed in St. Louis?

Given Mean = (µ) = 9.7

P( X > 11.6) = 0.2245
11.6−9.7
P [Z > ]= 0.757
σ
σ = 2.50

Q#3 Find the area under the standard normal distribution curve.
a) Between z = 0 and z = 1.07

a) Between z = 0 and z =1.07

P(0 < z < 1.07 ) = 0.3577 from table z
To the right of z = 2.01

b)
To the right of z = 2.01
P( z > 2.01 ) = 0.0222 from table z
To the left of z = - 1.87

c) To the left of z = −1.87

P( z < - 1.87 ) = 0.0307
from table z

Q#4: Find the probabilities for each,using the standard normal distribution
a) P(0 < z < 0.95)
b) P(−1.23 < z < 0)
c) P(z > 0.82)
d) P(z < −1.51).

a) P(0 < z < 1.07 ) = 0.3289

This is the area under normal curve between z = 0 and z = 0.95 this can be obtained from the
area table of standard normal distribution under 0.9 and 5.

Z = 0.95
b) P ( - 1.23 < z < 0) = 0.3907
This is the area between z = 0 z = - 1.23. The normal curve is symmetric to the table vale
under 1.2 and 3 gives the anwer

Z= Z=0
-1.23
c) P( Z > 0.82) = 0.2061
This is the area of z more the value of 0.82 then we get the answer

Z = 0.82
 d) P( z < - 1.51 ) = 0.0655
This area is under normal curve below – 1.51 so we have to subtract the table value 1.5
and -1 from 0.5 because it is below the curve the curve as the area –infinity to 0 is 0.5 so
the table value of -1.51 + < 1.51 = 0.50

Q#5: Find the z value that corresponds to the given area.

a)
Since the z score is on the left side of 0, use the negative z table. Areas in the negative z
table are in the tail, so we will use 0.5 – 0.4175 = 0.0825 as the area. The closet z score
corresponding to an area of 0.0825 is z = -1.39.
 b)

Use the negative z table and 1-0.8962 = 0.1038 for the area. The z score is z = -1.26

c)

P(Z < z) = 0.9671

Table E only contains the probabilities smaller than a z- score. The corresponding z-score
z is then given in row and column title of the table E which correspond to probability
closest. Z = 1.84

Q#6: To provide concrete illustrations of the sampling distribution of the sample mean. For
that reason, the populations considered are unrealistically small. In each exercise, assume that
sampling is without replacement.
NBA Champs. The winner of the 2008–2009 National Basketball Association (NBA)
championship was the Los Angeles Lakers. One starting lineup for that team is shown in
the following table.

a) Find the population mean Height of the five players.

∑x
H= N
80+78+84 +73+84
H= 5
 399
H= 5

H = 79.8

b) For Samples of size 2, construct a table. Use the letter in parentheses after
each player’s name to represent each player.

Sample Height X

T1 K 80 , 78 79.0
T1 A 80, 84 82.0
T1 O 80 , 73 76.5
T1 P 80, 84 82.0
K1 A 78, 84 81.0
K1 O 78, 73 75.5
K1 P 78, 84 81.0
A1 O 84, 73 78.5
A1 P 84, 84 84.0
O1 P 73, 84 78.5

c) Draw a dotplot for the sampling distribution of the sample mean for samples
of size 2.
. . .
. . . . . .

0 73 74 75 76 77 78 79 80 81 82 83
84 X
d) For a random sample of size 2, what is the chance that the sample mean will
equal the population mean.
Ans) 0
Q#7: The average drive to work is 9.6 miles. Assume the standard deviation is 1.8
miles. If a random sample of 36 employed people who drive to work are selected,
find the probability that the mean of the sample miles driven to work is between 9
and 10 miles.
Given Mean = (µ) = 9.7
σ = 1.8
n = 18/36
n = 0.3
P[(9 -9.6) / 0.3 < 1 - 1/ < (10-9.6) / 0.3]
P(-2 < 1.33) –p ( z < -2)
0.9082 – 0.0228 = 0.8854
0.8854 Answer.