ADM 2303 Final Examination
 1 
December 11, 2000
University of Ottawa
Faculty of Administration
ADM 2303: STATISTICS FOR MANAGEMENT I
FINAL EXAMINATION
December 11, 2000
19002200
NAME:
S.N.
Section: A
B
C
D
Time: 3 hours
Total marks:65 + bonus 2
Put your name on THIS sheet in case you make a transfer error.
ALL ANSWERS (INCLUDING BRIEF EXPLANATIONS) GO ON THE ANSWER SHEET. THE EXAM
QUESTION SHEETS WILL
NOT
BE MARKED, though space is provided here for your rough work. The
question sheets
must
be deposited in the box provided. NOTE THAT THERE ARE MARKS FOR EXPLAINING
YOUR ANSWERS, SO MAKE SURE YOU INCLUDE BRIEF EXPLANATIONS ON THE
ANSWER
SHEET.
THERE ARE MARKS FOR IDENTIFYING PROBABILITY DISTRIBUTIONS. Calculators, 1 sheet of notes,
on 8.5" by 11" paper (no stickons!).
You do
not
need to interpolate, but take the nearest table value.
Q 1.
Thread Mills produces bolts of cloth that average 2.2 defects per square metre.
a) [ 4 ] What is the probability there will be no defects in 2 square metres;
b) [ 4 ] There will be more than 2 defects in 2 square metres.
c) [ 4 ] Thread Mills sends out sample books that use squares of cloth that are 15 cm on a side. What is the
probability a single such square has no defects?
d) [ 5 ] Regardless of your answer in (c), use a probability of 0.97 of no defect. If a dozen sample books are
prepared, what is the probability that two of them have defects?
Q 2. A series of eight electrical parts are connected in such a way that if one part fails, the system will not operate.
It happens that two parts have failed. You will inspect the parts in a random order.
a) [ 2] What is the probability that the first part that is inspected will be one of those that has failed?
b) [ 4
] What is the probability of finding both failed parts if four parts are inspected?
c) [ 2 ] The management wants at least 70% probability that BOTH bad parts have been found. If two parts out of
8 have actually failed, how would you calculate how many parts must be inspected to achieve this 70% probability
of finding both bad parts.
NOTE: the calculation can be messy unless you are well organized. You do NOT need
to do the calculations, only describe how they would be done.
Bonus mark [2]: BRIEFLY show the calculation results.
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ADM 2303 Final Examination
 2 
December 11, 2000
Q 3. The Goodman Tire and Rubber Company periodically tests its tires for tread wear under simulated road
conditions. To study and control its manufacturing processes, the company uses control charts for both the average
wear and the range of the wear. The design for the particular tires aims to have wear under the simulated conditions
between 0.9 and 1.14 millimeters.
20 samples, each containing 10 radial tires, were chosen from different shifts.
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 Winter '00
 Phansalker
 Management, Normal Distribution, center line, Joe Poisson

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