BahriaUniversity

Islamabad Campus
Midterm Examination (Summer-2020)
Department of Business Studies
Instructor Name: Summaira Haroon
Program: BBA 3rd Course: Statistical Inference and QR
Date: 23-08-2020 Time Allowed: 2-1/2Hrs
Max Marks: 25 Time: 5:00 pm

Instructions:
I. Attempt all questions.

Q#01: [5+3]
a) The mean number of hours of an American worker spends on computer is 3.1 hours per workday. Assume
the standard deviation is 0.5 hours. Find the probability of the workers
i) At least 5 hours on the computer
ii) At most 3.5 hours on the computer
iii) More than 5.5 hours on the computer
iv) 2.5 hours on the computer
v) 2 to 3 hours on the computer
b) A mandatory competency test for high school sophomore has a normal distribution with a mean of 400
and a standard deviation of 100. Top 5% of the students receive $500. What is the minimum score you
would need to receive this award?

Q#02: [8]
Consider the population 2, 2, 4, 5, 6, 7
Make all possible samples of size 2 without replacement and make
1. Sampling distribution of means
2. Population mean
3. Mean of sampling distribution of means
4. Population variance
5. Variance of sampling distribution of means
6. Prove the relation for mean and variance

Q#03: [3+2+4]
a) A manager at the restaurant timed six employees and found that it took them an average time of 20
minutes to cater one table with standard deviation 3 minutes. Find 95% confidence interval for the true
mean.
b) Find point estimates of variance and standard deviation.

58 72 100 62 74 53 99
c) The tax rates on basic food
items in two different markets are given below:

Market 1 112 120 98 55 71 35 99 124 64

Market 2 150 150 55 100 132 20 70 93
Find the 95% confidence interval for the difference of averages of tax rates in two food markets.