Probability and Statistics FTU

Midterm examination
Time: 60 minutes
No note is allowed

Instruction: Show all steps of your work to receive full credit. Take 2 decimal places for your results.

1) (2 pts) According to an annual consumer spending survey, the average monthly Bank of America
Visa credit card charge was $1838 (U.S. Airways Attaché Magazine, December 2003). A sample
of monthly credit card charges provides the following data.

a) Compute the mean and median.

b) Compute the first and third quartiles.

c) Compute the range and interquartile range

d) Compute the variance and standard deviation.

2) (2 pts) The daily high and low temperatures for 20 cities follow (USA Today, March 3, 2006).

a) Prepare a stem-and-leaf display of the high temperatures.

b) Prepare a stem-and-leaf display of the low temperatures.

c) Compare the two stem-and-leaf displays and make comments about the difference between
the high and low temperatures.

3) (2 pts) The days to maturity for a sample of five money market funds are shown here. The
dollar amounts invested in the funds are provided. Use the weighted mean to determine the mean
number of days to maturity for dollars invested in these five money market funds.

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Probability and Statistics FTU

4) (2 pts) Dividend yield is the annual dividend paid by a company expressed as a percentage of the
price of the stock (Dividend/Stock Price x 100). The dividend yield for the Dow Jones Industrial
Average companies is shown in the table below (The Wall Street Journal, June 8, 2009).

a) Construct a frequency distribution.

b) Construct a histogram

5) (2 pts) The Wall Street Journal/Harris Personal Finance poll asked 2082 adults if they owned a
home (All Business website, January 23, 2008). A total of 1249 survey respondents answered Yes.
Of the 450 respondents in the 18–34 age group, 117 responded Yes.
a) What is the probability that a respondent to the poll owned a home ?

b) What is the probability that a respondent in the 18–34 age group owned a home ?

c) What is the probability that a respondent to the poll did not own a home ?

d) What is the probability that a respondent in the 18–34 age group did not own a home ?

THE END

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