Quiz 1A (MAS202)

Problem 1
The following data shows the yearly income distribution of a sample of 200 employees at Walmart, Inc.

Yearly Income Number of

(In $1, 000s) Employees
20 - 24 2
25 - 29 48
30 - 34 60
35 - 39 80
40 - 44 10

a. What percentage of employees have yearly incomes of $35, 000 or more?

b. Does the figure computed in part a exemplify statistical inference? If no, what kind of statistical information
does it represent?
c. Based on this sample’s statistical model, the president of the company predicted that “50% of all our employees’
yearly incomes are $35, 000 or more.” What kind of statistical information does the president’s statement
represent?

d. What percentage of employees of the sample have yearly incomes of $30, 000 or more?
e. Name the variables and indicate whether they are categorical (nominal/ordinal) or numerical (discrete/continuous).
f. What measurement scale is used for each variable?

g. Which graph or chart type is appropriate for visualizing the income distribution table?

Problem 2
A survey of 400 college seniors resulted in the following table regarding their undergraduate major and whether or
not they plan to go to graduate school

Undergraduate Major
Graduate School Business Engineering Others Total
Yes 91 104 65 260
No 35 42 63 140
Total 126 146 128 400

a. Which graph or chart type is appropriate for visualizing the income distribution table?
b. Are a majority of the seniors in the survey planning to attend graduate school?
c. Which undergraduate major constitutes the majority of the individuals in the survey?

d. Compute row percentages and comment on the relationship between the students’ undergraduate major and
their intention of attending graduate school.
e. Compute the column percentages and comment on the relationship between the students’ intention of going to
graduate school and their undergraduate major.

1
Problem 3
The sales records of a real estate company for the month of May shows the following house prices (rounded to the
nearest $1, 000). Values are in thousands of dollars.

105 55 45 85 75
30 60 75 79 95

1. Develop a frequency distribution and a percent frequency distribution for the house prices. Let the first class
be 20 - 39.
2. Develop a cumulative frequency and a cumulative percent frequency distribution for the above data.
3. What percentage of the houses are sold at a price above $60, 000?

4. What percentage of sold houses are within 1 standard deviation of the mean?

Problem 4
A sample of twelve families was taken. Each family was asked how many times per week they dine in restaurants.
Their responses are given below.

2 1 0 2 0 2
1 2 0 2 1 2

Using this data set, compute/determine

a. the mean.

b. the variance.
c. the standard deviation.
d. the mode.
e. the five-number summary

f. if there is any outlier with the Q1 − 1.5 × IQR and Q3 + 1.5 × IQR rules
g. whether the data is skewed or not? Show your work to support the answer.

Problem 5
Let’s assume you want to find the occurrences of certain bottlenecks in your business process. The data is gathering
and organizing in the following table

Bottleneck Types/ Days of the week

Event Occurrence Sun Mon Tue Wed Thu Fri Sat Total
Bottleneck A 45 21 12 33 26 31 28 196
Bottleneck B 4 7 3 5 0 2 9 30
Bottleneck C 12 15 9 11 4 13 7 71
Bottleneck D 45 26 23 37 28 39 22 220
Bottleneck E 25 14 17 11 21 12 9 109
Total 131 83 64 97 79 97 75 626

Create a Pareto chart and identify the two main bottlenecks that require immediate attention.