Practice exercise Week 3

1. A population consists of the following five values: 12, 12, 14, 15, and 20.
a. List all samples of size 3, and compute the mean of each sample.
b. Compute the mean of the distribution of sample means and the population mean. Compare
the two values.
c. Compare the dispersion in the population with that of the sample means. (Dispersion
means spread of the distribution.)
2. In the law firm Tybo and Associates, there are six partners. Listed is the number of cases each
partner actually tried in court last month.
a. How many different samples of size 3 are possible?
b. List all possible samples of size 3, and compute the mean number of cases in each
sample.
c. Compare the mean of the distribution of sample means to the population mean.
d. On a chart, compare the dispersion in the population with that of the sample means.

Q3. According to a study, it takes a mean of 330 minutes for taxpayers to prepare, copy, and
electronically file a tax form. This distribution of times follows the normal distribution and the
standard deviation is 80 minutes. A consumer watchdog agency selects a random sample of 40
taxpayers.
a. What is the standard error of the mean in this example?
b. What is the likelihood the sample mean is greater than 320 minutes?
c. What is the likelihood the sample mean is between 320 and 350 minutes? d. What is the
likelihood the sample mean is greater than 350 minutes?
Q4. A recent study by the Greater Los Angeles Taxi Drivers Association showed that the mean
fare charged for service from Hermosa Beach to Los Angeles International Airport is $21 and
the standard deviation is $3.50. We select a sample of 15 fares. What is the likelihood that the
sample mean is between $20 and $23?
Q5. Over the past decade, the mean number of hacking attacks experienced by members of the
Information Systems Security Association is 510 per year with a standard deviation of 14.28
attacks. The number of attacks per year is normally distributed. Suppose nothing in this
environment changes.
a. What is the likelihood this group will suffer an average of more than 600 attacks in the
next 10 years?
b. Compute the probability the mean number of attacks over the next 10 years is between
500 and 600.
c. What is the possibility they will experience an average of less than 500 attacks over the
next 10 years?
Solution
Q1.
Total samples of size 3 out of total 5 objects without replacement are:
5!
𝐶(5,3) = = 10
3! (5 − 3)!
Values ID Values
1 12
2 12
3 14
4 15
5 20
Population Mean 𝜇 Sum of all values/5 = 14.6
a. List of samples of size 3. List of samples of size 3.
Sample Values Sum Mean
1,2,3 12 12 14 38 12.67
1,2,4 12 12 15 39 13.00
1,2,5 12 12 20 44 14.67
1,3,4 12 14 15 41 13.67
1,3,5 12 14 20 46 15.33
2,3,4 12 14 15 41 13.67
2,3,5 12 14 20 46 15.33
3,4,5 14 15 20 49 16.33
1,4,5 12 15 20 47 15.67
2,4,5 12 15 20 47 15.67
Sample mean 𝜇𝑥̅ 𝜇𝑥̅ =sum of all means/10 = 14.6

Probability of population data Probability Sample Distribution

Value frequency probability Mean Frequency probability

12 2 0.4 12.67 1 0.1
14 1 0.2 13.00 1 0.1
15 1 0.2 13.67 2 0.2
20 1 0.2 14.67 1 0.1
total 5 1 15.33 2 0.2
Total 15.67 2 0.2
16.33 1 0.1
Total 10 1

b. The popultation mean and the sample mean are same. That’s 14.6.
c. The population spread is from 12 to 20 whereas sample mean spread is from 12.67 to
16.33. See charts on the nect page made by using the table of probabilites given
above.
 Population distribution

0.4
Probability

0.2 0.2 0.2

12 14 15 20
Values

Sample Means Distribution

0.2 0.2 0.2

Probability

0.1 0.1 0.1 0.1

12.67 13.00 13.67 14.67 15.33 15.67 16.33

Means from Samples
Q2.
Sample Cases sum Mean Infromation

1 Ruud Saas Flores 3 3 3 9 3.00 1 Ruud 3

2 Ruud Saas Willhelms 3 3 0 6 2.00 2 Wuu 6
3 Ruud Saas Schueller 3 3 1 7 2.33 3 Sass 3
4 Ruud Saas Wu 3 3 6 12 4.00 4 Flores 3
5 Ruud Flores Willhelms 3 3 0 6 2.00 5 Wilhelms 0
6 Ruud Flores Schueller 3 3 1 7 2.33 6 Schueller 1
7 Ruud Flores Wu 3 3 6 12 4.00 Population Mean 2.67
8 Ruud Willhelms Schueller 3 0 1 4 1.33
9 Ruud Willhelms Wu 3 0 6 9 3.00 Case Frequency Prob
10 Ruud Schueller Wu 3 1 6 10 3.33 0.00 1 0.17
11 Saas Flores Willhelms 3 3 0 6 2.00 1.00 1 0.17
12 Saas Flores Schueller 3 3 1 7 2.33 3.00 3 0.50
13 Saas Flores Wu 3 3 6 12 4.00 6.00 1 0.17
14 Saas Willhelms Schueller 3 0 1 4 1.33 Toal 1.00
15 Saas Willhelms Wu 3 0 6 9 3.00
16 Saas Schueller Wu 3 1 6 10 3.33 Means
17 Flores Willhelms Schueller 3 0 1 4 1.33 1.33 3 0.15
18 Flores Willhelms Wu 3 0 6 9 3.00 2.00 3 0.15
19 Flores Schueller Wu 3 1 6 10 3.33 2.33 4 0.2
20 Willhelms Schueller Wu 0 1 6 7 2.33 3.00 7 0.35
Sample Mean 2.67 4.00 3 0.15
Total 20.00 1.00

Population Probability Distribution

0.60

0.50
0.50

0.40

0.30

0.20 0.17 0.17 0.17

0.10

0.00
0.00 1.00 3.00 6.00
 Means Prob Dist
0.25

0.2 0.2
0.2

0.15 0.15 0.15 0.15

0.15

0.1

0.05

0
1.33 2.00 2.33 3.00 3.33 4.00

Q3.
80
𝑠 =
√40
b.
𝑧(320) = (320 − 330)/(80/(√40 )) = −0.79057
𝑃(𝑧 > −0.79057) = 0.7854
𝑃(𝑠𝑎𝑚𝑝𝑙𝑒 𝑚𝑒𝑎𝑛 > 320) = 0.7854
c.
𝑃(𝑧(350) − 𝑧(320)) = 0.7285
d.
𝑃(𝑧 > 𝑧(350)) = 0.0569
Q4.
20 − 21 23 − 21
𝑧(20) = = −1.11, 𝑧(23) = = 2.21
3.5 3.5
√15 √15
𝑃(−1.11 < 𝑧 < 2.21) = 0.4864 + 0.3665 = 0.8529
Thus, the likelihood (probability) that the sample mean is between $20 and $23 is 0.8529.
Q5. 𝜎 = 14.28, 𝑛 = 10
𝜎 14.28
𝜎𝑥̅ = = = 4.515
√𝑛 √10

600 − 510
a. 𝑧 = 4.5151
= 19.9, 𝑃 = 0.00, or virtually never
500 − 510
b. 𝑧 = 4.515 = −2.21, 𝑃 = 0.4864 + 0.5000 = 0.9864
500 – 510
c. 𝑧 = 4.515 = −2.21, 𝑃 = 0.5000 − 0.4864 = 0.0136