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Statistical Methods in Business: Answer to Optional Problems – module 1
A1. The AMI Company has two assembly lines in its Kansas City plant.
Line A
produces an average of 325 units per day with a standard deviation equal to 10
units.
Line B produces an average of 140 units per day with a standard deviation
equal to 6 units.
Based on this information, which line is relatively more
consistent in production?
CV (A) = 10/325*100 = 3.08%
CV (B) = 6/140*100 = 4.29%
Line A is more consistent (only slightly more)
A2. Suppose annual salaries for sales associates from a particular store have a
bellshaped distribution with a mean of $32,500 and a standard deviation of
$2,500.
The zscore for a sales associate from this store who earns $37,500 is
a.
37.5
b.
2
c.
2
d.
0.92
Z= (37,50032,500)/(2500) = 2….answer is b
A3.
Outlier > mean + 3* (st. deviation)
Outlier > 32,500 + 3*(2,500) > 40,000
Answer is c.
A4. Fifty students are enrolled in an Economics class.
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This note was uploaded on 03/27/2010 for the course FINANCE Ali taught by Professor Finance during the Spring '10 term at Abraham Baldwin Agricultural College.
 Spring '10
 Finance

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