Graduate School of Business – MBA program

Final Exam
Course: Applied Statistics Marks: 40
Lecturer: Dr. Nasser El-Maghraby Duration: 2 Hours

Answer Four Questions Only

1. a) Evaluate the rank correlation coefficient for the following table

x C F B D D C A B- F
y A A- D C F B+ D F C

b) Find the correlation coefficient and the regression equation of the form (y= ax +b) for the
following data
x 12 14 16 18 20 22 24
y 7 9 11 11 13 15 17

2. a) If A and B are two events, where P(A) = 0.25, P ( B ) = 0.35.

Find P( B A) for each of the following:
i) A and B are independent.
ii) A is subset of B .

b) A box contains 15 balls where 4 balls are white, 5 balls are red and 6 balls are black.
Two balls are drawn randomly from the box (with replacement). Calculate the probability
that:
i) Both balls are not black.
ii) Both balls are of different colors.

3. a) The KFC restaurant chain claims that the waiting time of the customers for service is
normally distributed with mean of 3.11 minutes and with standard deviation of 0.8
minutes.
i) What is the probability that the waiting time of the customers is more than 2.52 minutes?
ii) What is the probability that the waiting time of the customers between 2.22 and 2.88
minutes?

b) Octavia warranty records shows that the probability that new car needs a warranty repair
in the first 60 days is 15%. If a sample of 20 cars is selected, what is the probability that in
the first 60 days
i) Four cars need warranty repair.
ii) At least two cars need warranty repair.

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4. a) Airline passengers arrive randomly and independently at Cairo international airport.
The mean arrival rate is 4 passengers per minute. Find the probability that:

i) Three arrivals in a minute?

ii) Two arrivals or fewer in a minute?

b) From past records it is known that 55% of American households spends 90$ or more
per day. A random sample of 150 American households revealed that 81of them spends
less than 90$ per day. At 0.95 confidence level can we conclude that the proportion of
American households spends 90$ or more still 55%?

5. a) If The mean ages of the waitresses at Starbucks chain is 23.7 years. The quality
assurance department found in a sample of 24 waitresses at Miami branch that the mean
ages is 25.6 years and with a standard deviation of 0.9 years. At 0.1 significant level can
we conclude that the mean ages of the waitresses at Starbucks chain dos not change?

b) A recent study of the relationship between social activity and education showed the
following results.

Social Activity
Education Bad Good Excellent
College 200 120 80
High School 90 100 120
Grade School 110 80 100

At 0.01 significance level, is there a relationship between social activity and education?

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 Rules
Pearson’s correlation coefficient
Regression
n∑ xy - (∑ x)(∑ y )
n ∑ xy - (∑ x )(∑ y ) r=
2 2
a= 2 n∑ x 2 - (∑ x ) n∑ y 2 - (∑ y )
n ∑ x 2 - (∑ x )
Rank correlation coefficient
∑ y - a∑ x
b= 6  D2
n r  1
n ( n 2  1)
n(A )
P (A ) 
n (s ) P(A)  1  P(A)
P A  B   P A   P B   P  A  B 

n x n!
P  x   nC x  x 1    Cx 
n

x !n  x  !

e   x   n
P x  
x!
  x 
E z E t z 
n n 

p s 1  p s  p s 1  p s 
E z E t df  n  1
n n

  f  f 2   Row total Column total

c2    o e
 fe 
 f e  Grand total

d.f. = (number of rows -1)(number of columns -1)

Confidence level Z
90% 1.65
95% 1.96
99% 2.58

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