Ben Wesner
Acct 3303
Mon 7-9:45
Homework 2
E2-2 a. False - The fundamental qualitative characteristics that make accounting
information useful are relevance and faithful representation.
E2-2 b. False - Relevant information must also be material.
E2-2 c. F

Given are five observations for two variables, x and y
xi
3
12
6
20
14
Sum
yi
55
40
55
10
15
Sum
a. Develop a scatter diagram for these data.
Chart Title
60
50
40
30
20
10
0
2
4
6
8
10
12
14
16
18
20
22
55 xbar
11
175 ybar
35
x - xbar
y-ybar
(x-xbar)(y-yb

The probability distribution for the random variable x follows.
x
20
25
30
35
P(x)
0.20
0.15
0.25
0.40
1
0
0
0
0
(a) Is this probability valid? Explain
Yes this probability is valid. It meets both criteria for a discrete probabilty function.
Criteria 1 -

Consider the following hypothesis test:
H0 :
150
Ha :
<
150
<left tailed
A sample of 50 provided a sample mean of 19.4. The population standard deviation is 2.
a. compute the value of the test statistic
Hypothesized Mean = 0 =
150
Sigma = s =
Sample SD

Data Values
27
25
20
15
30
34
28
25
Ascending order
15
20
25
25
27
28
30
34
I = (p/100)(n)
p=%
n = # of Data Values
(a) 20th percentile
I = (20/100)(8) = 1.6, round up to 2
The observation at the 2nd position is the 20th percentile, which is 20
(b) 25th p

Draw a graph for the standard normal distribution. Label the horizontal axis at values of -3,-2,-1,0,1,2,3
Then compute the following probabilities
(a)
P(z 1.5)
0.9332
area is to the left of the line, look in the book
1.5 = .9332
1.5
(b)
P (z 1)
0.8413
ar

A population has a mean of 200 and a standard deviation of 50. Suppose a simple random sample of
size 100 is selected and is used to estimate m.
m=
s=
200
50
sample size n =
100 (n is above 50 so we can typically use
a. What is the probability that the sa

A simple random sample of 50 items from a population with s = 6 resulted in a sample mean of 32.
a. Provide a 90% confidence interval for the population mean.
n
Xbar (sample mean)
Sigma
Standard Error of Mean =Sigma/SQRT(n)
Confidence Level = a
Alpha
Alph

x
f(x)
20
25
30
35
0.2
0.15
0.25
0.4
1
Sum
(a)
(b)
(c )
(d)
Yes the probability distrubution is valid because x is greater then or equal to 0 and f(x) sum is 1
Probability x= 30 is .25 as read above.
Probability x is less than or equal to 25 is .35. Add p

Ben Wesner
Durmaz
Stats 3303
T 7-9:45
HW 7
1. 25-23=2
2+-1.96 162/14+102/15
-0.637-4.637
2. 21-19=2
2+-1.96 2.752/50+3.002/45
.8383-3.1617
3. 28-25=3
3+-1.96 42/60+32/55
a. 1.714-4.286
b. Since the range of the interval is from positive to positive, it in

Ben Wesner
Durmaz
Stats 3303
T 7-9:45
HW 7
1. 25-23=2
2+-1.96 162/14+102/15
-0.637-4.637
2. 21-19=2
2+-1.96 2.752/50+3.002/45
.8383-3.1617
3. 28-25=3
3+-1.96 42/60+32/55
a. 1.714-4.286
b. Since the range of the interval is from positive to positive, it in

Practice Questions Chapter 1 and 2
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
1. Which of the following is not an example of descriptive statistics?
a. a histogram depicting the age distribution for 30