Group Assignment No.
Continuous Probability Distribution & Sampling
Max. Marks: 30
All the questions are compulsory. The weightage of each question has been mentioned next
to it.
Note:
1. Please do not repeat the text of questions in your response sheets.
2. There must be only a single submission per group.
3. Use the following format to name your files before submitting: Group<No.>.
Example, members of group no. 5 will name their files as: Group5.
Q1. M/PF Research, Inc. lists the average monthly apartment rent in some of the most
expensive apartment rental locations in the United States. According to their report, the
average cost of renting an apartment in Minneapolis is $951. Suppose that the standard
deviation of the cost of renting an apartment in Minneapolis is $96 and that apartment rents
in Minneapolis are normally distributed. If a Minneapolis apartment is randomly selected,
what is the probability that the price is:
a. $1,000 or more?
b. Between $900 and $1,100?
c. Between $825 and $925?
d. Less than $700?
(2+2+2+2)=8
Q2. The U.S. Bureau of Economic Statistics reports that the average annual salary in the
metropolitan Boston area is $50,542. Suppose annual salaries in the metropolitan Boston area
are normally distributed with a standard deviation of $4,246. A Boston worker is randomly
selected.
a. What is the probability that the worker’s annual salary is more than $60,000?
b. What is the probability that the worker’s annual salary is less than $45,000?
c. What is the probability that the worker’s annual salary is more than $40,000?
d. What is the probability that the worker’s annual salary is between $44,000 and $52,000?
(2+2+2+2)=8
Q3. A survey of 2,645 consumers by DDB Needham Worldwide of Chicago for public
relations agency Porter/Novelli showed that how a company handles a crisis when at fault is
one of the top influences in consumer buying decisions, with 73% claiming it is an influence.
Quality of product was the number one influence, with 96% of consumers stating that quality
influences their buying decisions. How a company handles complaints was number two, with
85% of consumers reporting it as an influence in their buying decisions. Suppose a random
sample of 1,100 consumers is taken and each is asked which of these three factors influence
their buying decisions.
a. What is the probability that more than 810 consumers claim that how a company handles a
crisis when at fault is an influence in their buying decisions?
b. What is the probability that fewer than 1,030 consumers claim that quality of product is an
influence in their buying decisions?
c. What is the probability that between 82% and 84% of consumers claim that how a
company handles complaints is an influence in their buying decisions?
(2+2+2=6)
Q4. Suppose the average client charge per hour for out-of-court work by lawyers in the state
of Iowa is $125. Suppose further that a random telephone sample of 32 lawyers in Iowa is
taken and that the sample average charge per hour for out-of-court work is $110.
a. If the population variance is $525, what is the probability of getting a sample mean of
$110 or larger?
b. What is the probability of getting a sample mean larger than $135 per hour?
c. What is the probability of getting a sample mean of between $120 and $130 per hour?
(2+2+2)=6
Q5. A researcher is conducting a study of a Fortune 500 company that has factories,
distribution centers, and retail outlets across the country. How can she use cluster or area
sampling to take a random sample of employees of this firm?
