W97_2303_Exam - University of Ottawa NAME: Time: 3 hours...

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ADM 2303 Final Examination - 1 - April 20, 1997 University of Ottawa Faculty of Administration ADM 2303: STATISTICS FOR MANAGEMENT I FINAL EXAMINATION April 20, 1997 1400-1700 NAME: S.N. Section: Time: 3 hours Total marks: 50 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, and approved statistical tables permitted (MBB or signed by J C Nash). You do not need to interpolate, but take the nearest table value. 1. Acme Soap Co. markets its bars of soap under two different brand names that pretend to be fierce competitors: Clean-your-Clock (CYC) and Wedge 1000. Both are made on the same production line with simply different packaging. Sales of CYC average 2350 boxes per week with standard deviation 402 boxes. Wedge sales average 1500 boxes per week with standard deviation 350 boxes. Acme sells Wedge for $25 per box (there are 200 bars of soap in a box) and CYC to $18 per box. For some reason, soap sales rise and fall with the business cycle, so the correlation between the sales of the two brands has a correlation of 0.55. a) [ 5 ] What is the standard deviation of the combined weekly revenue from both types of soap? b) [ 2 ] What is the mean combined weekly revenue from both types of soap?.
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ADM 2303 Final Examination - 2 - April 20, 1997 Q 2. A Revenue Canada auditor is told by his/her director that 15% of self-employed people make claims that are exaggerated, that is, go beyond the allowances of the Tax Act, but that only 0.1% are clearly fraudulent. Assume these figures are correct, and that the auditors are good enough to catch all errors and frauds. The auditor investigates 6 accounts drawn at random from the files. a) [ 3 ] What is the probability no accounts have exaggerated claims? b) [ 3 ] What is the probability two or more accounts have exaggerated claims? The whole office examines a total of 1234 accounts for a particular taxation period. c) [ 4 ] What is the probability they find more than 2 fraudulent claims. d) [ 4 ] What is the probability they find more than 200 exaggerated claims. e) [ 3 ] To train new auditors, the director prepares a set of 20 files, 6 of which contain exaggerated claims. A novice auditor is given 4 files at random. What is the probability he/she gets at least 1 file with an exaggeration?
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ADM 2303 Final Examination - 3 - April 20, 1997 Q 3. Farmaco, a drug manufacturer, is packaging a new pill that helps students to get high marks in statistics. Each pill is supposed to contain 10 mg. of the active ingredient. The manufacturer decides that pills with between 9 mg. and 11 mg. of active ingredient will be acceptable. You are hired to help manage the pill production.
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This note was uploaded on 02/13/2011 for the course ADM na taught by Professor Na during the Winter '09 term at University of Ottawa.

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W97_2303_Exam - University of Ottawa NAME: Time: 3 hours...

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