SQQS 1013 ELEMENTARY STATISTICS A151

SCHOOL OF QUANTITATIVE SCIENCES

UUM COLLEGE OF ARTS AND SCIENCES

UNIVERSITI UTARA MALAYSIA

First Semester Session 2015/2016 (A151)

SQQS1013 Elementary Statistics

Group Assignment 2

(40 Marks: 10% of coursework)

INSTRUCTIONS:

1.
Form a team of FOUR (4) to FIVE (5) persons and appoint a leader.

2.
Each member must participate in completing the
whole assignment. The leader shall report any lack of participation directly to
the lecturer for appropriate actions (may include marks deduction).

3. Answer
ALLquestions and show your
calculations clearly.

4. Report
must be neatly writtenusing A4
paper; soft copies are preferred.

5. The
front cover for the report is as in Appendix.

6. Submission
due date: 3^rd December 2015 (Thursday)

QUESTION 1 (20 MARKS)

Suppose
you obtain and read information about new pain medications. A study was
conducted to test the side effects of two drugs for the pain medications. TABLE
1 shows the results from the study.

TABLE
1

Side effect	Number of side effects in 12-week clinical trial
Placebo n = 192	Drug A n = 186	Drug B n = 188
Upper respiratory congestion	10	32	19
Sinus headache	11	25	32
Stomach ache	2	46	12
Neurological headache	34	55	72
Cough	22	18	31
Lower respiratory congestion	2	5	1
None	111	3	21

a)
State
whether the study is observational or experimental. Explain your reason.

(2 marks)

b)
List
all the variables.

(3 marks)

c)
A
person is selected at random. Find the probability that the person was

i.
receiving
a placebo.

(2 marks)

ii.
receiving
drug A or B. Are these events mutually exclusive? Give the reason.

(4 marks)

iii.
not
receiving a placebo or experienced a sinus headache.

(2 marks)

iv.
having
a lower respiratory congestion given that he or she received drug A.

(2 marks)

d) Four
(4) persons
are selected at random for interview session. Two (2) persons from those who received drug A, and the others from
those who received drug B. Is it unusual that all of them did not having any
side effects? Justify your answer.

(5 marks)

QUESTION
2 (20 MARKS)

a) Prescott National Bank has
six (6) tellers available to serve customers. TABLE 2 indicates the past records of the number of tellers busy
with customers at 1:00pm on 100 randomly selected days. It is a random variable
since the value varies from day to day and depends on chance.

(10 marks)

TABLE 2

5	3	5	3	4	3	4	3	6	5	6	4	5	4	3	5	4	5	6	3
4	1	6	5	3	6	3	5	5	4	6	4	1	6	5	3	3	6	4	5
3	4	2	5	5	6	5	4	6	2	4	5	4	6	4	5	5	3	4	6
1	5	4	6	4	4	4	5	6	2	5	4	5	1	3	3	6	4	6	4
5	6	5	5	3	2	4	6	6	1	5	1	3	6	5	3	5	4	3	6

i.
Construct
a probability distribution for the number of tellers busy with customers.

ii.
Find
the probability of all the tellers busy with customers. Interpret the value in
terms of percentages.

iii.
Construct
the cumulative probability distribution.

iv.
Find
the probability that at most three (3) of the tellers busy with customers.

b)
An
investor plans to put RM50 000 in one of four investments. The return on each
investment depends on whether next year’s economy is strong or weak. TABLE 3
summarizes the possible payoffs (in RM) for the four investments.

(10 marks)

TABLE
3

	Next year’s economy
Investment	Strong	Weak
Certificate of deposit	6 000	6 000
Office complex	15 000	5 000
Land speculation	33 000	-17 000
Technical school	5 500	10 000

Let V, W, X, and Y denote
the payoffs for the certificate of deposit, office complex, land speculation,
and technical school, respectively. Then V, W, X, and Y are random variables.
Assume that next year’s economy has a 40% chance of being strong and a 60%
chance of being weak. Which investment would you suggest for the investor? Justify
your answer.

SQQS1013 ELEMENTARY STATISTICS FIRST SEMESTER SESSION 2015/2016 (A151) GROUP ASSIGNMENT 2 GROUP Submitted to: YOUR LECTURER’S NAME Prepared by: YOUR TEAM NO. MATRIC. NO. NAME 1 2 3 4 Submitted date 3rd DECEMBER 2015 SCHOOL OF QUANTITATIVE SCIENCES UUM COLLEGE OF ARTS AND SCIENCES UNIVERSITI UTARA MALAYSIA