Lahore School of Economics

MBA I
Statistics I Winter 2012

Name:______________________ Section:_______________

Date:______________________ Score:________________

Assignment No. 5 (Chapter No.3)

Q.1: A study conducted by the Toledo police at the intersection of Byrne and Heatherdowns for
the 7 to 9 AM drive time revealed the following number of vehicles proceeded through the
intersection after the light changed. The information reported below is for a sample of
seven days during a six month period

6 12 7 12 8 4 5

a. Compute the sample mean. a.

b. What is the median?

b.

c. What is the mode?

c.
Q.2: Advertising expenses are a significant component of the cost of goods sold. Listed
below is a frequency distribution showing the advertising expenditures of 60
manufacturing companies located in Southwest.

Advertising Expenditure Number of

($ millions) Companies
25 up to 35 5
35 up to 45 10
45 up to 55 21
55 up to 65 16
65 up to 75 8

a. Estimate the mean, median and mode.

b. Comment on the shape of the distribution.
Q.3: A sample of eight companies in the aerospace industry was surveyed as to their return on
investment last year. The results are (in percent): 10.6, 12.6, 18.2, 12.0, 14.8, 12.2, and 15.6.
Calculate the (a) range (b) arithmetic mean (c) mean deviation and (d) interpret the range and the
mean deviation.

Q.2: The annual incomes of the five vice presidents of TMV Industries are: Rs.125, 000;
Rs.128, 000; Rs.122, 000; Rs.133,000; and Rs.140,000.
a. What is the arithmetic mean income?
b. What is the variance? The standard deviation?
c. The annual incomes of officers of another firm similar to TVM Industries were also
studied. The mean was Rs.129, 000 and the standard deviation Rs.8, 612. Compare the
mean and dispersion in the two firms.
Q.4: The following frequency distribution reports the electricity cost for a sample of 50
two-bed room apartments in Albuquerque, New Mexico, during the month of May of last
year.
Frequency Mid Point
Electricity (f) (M) fM f M2
Cost
$ 80 up to $100 3
100 up to 120 8
120 up to 140 12
140 up to 160 16
160 up to 180 7
180 up to 200 4
Totals n=∑f = ∑ fM = 2
∑ fM =

a. Estimate the mean cost.

b. Estimate the standard deviation.
c. Use Empirical Rule to estimate the proportion of costs within two standard
deviations of the means?
d. Use Chebyshev’s theorem to determine at least what percent of costs will lie
within two standard deviations of the means?