UNIT NAME: STATISTICS

OCTOBER 2021 ASSIGNMENT I

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1. A random sample of 50 auto drivers insured with a company and having similar auto
insurance policies was selected. The following data shows monthly auto insurance premium
(in Kshs.000) paid by them.

54 40 45 20 60 30 35 40 55 73 20 15
45 60 45 25 14 30 25 18 35 25 45 56
59 25 27 39 50 56 20 25 30 30 41 25
56 48 45 25 35 60 55 48 38 34 60 60
60 64

a) Construct a frequency distribution table for the data using discontinuous classes.

b) Use the table to calculate:

i. Mean monthly premium paid (Use the provisional mean method)

ii. The standard deviation.

iii. Quartile deviation.

iv. The mode.

2.
a) A company has 200 employees working in its two branches. It pays an average salary of
$5442 to its employees. If arithmetic means of the monthly salaries paid by the two
branches are $4570 and $6750 respectively. Find the number of employees attached each
branch.

b) In a university of 100 men and 50 ladies the professor noted the number of days absent
from class during the period of the four years of the course. For the men, the average
number of absences was 15 with a standard deviation of 7, and for the ladies the average
number of absences was 10 with a standard deviation of 6. What are the mean and the
standard deviation of the absences for the entire class of students?

3. The following table lists the probability distribution of a machine based on past data.
 Number of breakdowns 0 1 2 3 4
Probability P(x) 0.15 a b 0.2 0.2

Given that the expected number of breakdowns per week is 2.1. Find the values of the
probabilities a, and b, and hence compute the standard deviation of the number of breakdowns.