Exam 1 Practice Problems 1

Exam 1 Practice Problems 1 - BUAD 310 In-Class Practice...

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- 1 - BUAD 310 In-Class Practice Solutions 9/8/10 1. The Glitzwear catalog is mailed to thousands of people, and these people make (annually) purchases from the catalog, which average $42 and have a standard deviation of $60. a) Assuming that the distribution is normal, find the probability that one person’s purchases will exceed $40. Soln: 40 42 P X 40 P Z P Z 0.03 0.5 0.0120 0.5120 60 b) Suppose that you would like to obtain a sample of 100 of these people for followup interviews. For a sample of 100, what is the probability that the average annual purchases will exceed $40? Soln: 6293 . 0 1293 . 0 5 . 0 ) 333 . 0 ( ) 100 / 60 42 40 ( ) 40 ( Z P Z P X P 2. A television cable company receives numerous phone calls throughout the day from customers reporting service troubles and from would-be subscribers to the cable network. Most of these callers are put "on hold" until a company operator is free to help them. The company has determined that the length of time a caller is on hold is normally distributed with a mean of 3.1
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Exam 1 Practice Problems 1 - BUAD 310 In-Class Practice...

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