Part A
TRUE/FALSE QUESTIONS
1. Regression models or prediction equations can be used to describe, predict and
control the dependent variable on the basis of the independent variables.
2. , the y-intercept of the simple linear regression model, represents

Q4:
According to the American Contract Bridge League (ACBL) bridge hands that contain two 4card suits, one 3-card suit and one 2-card suit (4-4-3-2) occur with 21.55% probability. Suppose
that a bridge-playing statistics profess with much too much time on

Practice Quiz II
1. A technician at a plant which produces wire cables selects a simple random sample of 100 cables each
week from among the thousands of cables that are ready for shipping. The cables are subjected to a load
of 1000 pounds. Any cable that

Business Statistics, ISOM2500 (L1)
Practice Final
1. In a simple linear regression, the least squares regression line is
(a) the line which makes the sample correlation as close to +1 or 1 as possible.
(b) the line which best splits the data in half, with

6. Weekly demand for a popular software suite of programs is normally distributed
with a mean of 10,000 units and a standard deviation of 2,500 units.
Calculate:
a. The probability that any weeks demand exceeds 14,000 units.
b. The probability that any we

ISOM 2500
1.
(1) What is the population of interest?
(1) What is the sample?
(1) What is the parameter?
(1) What is the statistic?
(1) Does the value 10% refer to the parameter or to the statistic?
(1) Is the value 7.5% a parameter or a statistic?
(2) Exp

Business Statistics
PAN Baoqian, Kris
ISOM 2500
Topic 3: Estimation
Part a
What we have done
Descriptive
Statistics
Probability
Random
variables
Discrete
Random
Variable
Continuous
Random
Variable
Sampling
distribution
Simple
Linear
regression
Hypothesis

5. Explain which of the following: (1) conditional probability, (2) expected values, (3)
variance, or (4) probability distribution best describes each circumstance given
below.
a. We know 60% of our graduates work full-time in the private sector, 30% work

ISOM2500 L01 Business Statistics
Assignment02
Due Date: 24th Oct, 2016 5:00pm
Please submit your assignment to the collection box on LSK 4/F next to LSK Lift 3&4.
If you are work in group, please find one representative to submit the assignment.
Remind th

ISOM2500 L1 Business Statistics
Course Outline
LECTURE
Instructor: Dr. Baoqian PAN, Kris
Room: 5041 (LSK Business building); Email: ismtpbq@ust.hk
Office Hours: Wed 4:20pm-5:20pm; or send an email to make an appointment.
Instructional Assistant: Miss. Car

ISOM2500 Business Statistics
Tutor: Carey MA
Assignment01 Solution
1. a.
Chart of Risk
212
200
Count
150
100
91
50
13
0
Average
High
Low
Risk
Pie Chart of Risk
Category
Average
High
Low
Average
28.8%
Low
67.1%
High
4.1%
From either the bar chart or the pi

ISOM2500
Tutor: Carey MA
ISOM2500 Exercise04
MC Question
1.
There are 20 cards numbered from 1 to 20 inclusive. A card is randomly drawn from them. Find
the probability that the number on the card drawn is less than 8.
A.
B.
C.
D.
2.
A fair dice is thrown

Business Statistics
PAN Baoqian, Kris
ISOM 2500
Topic 2: Probability Part b
What we have done
Descriptive
Statistics
Proba bility
Random
variables
Sampling
distribution
Simple
Linear
regression
Hypothesis
testing
Confidence
intervals
2
Goals for this topi

ISOM2500
Tutor: Carey MA
ISOM2500 Exercise05
Short Question
1.
A box contains three chips. One chip is red on both sides. One chip is blue on both sides. One
chip is red on one side, and blue on the other. Suppose the box is shaken, a chip drawn and
place

7.
(a) In a class, there are 40 students and 60% of them are boys. It is known that 87.5% of boys
and 12 girls passed an examination. If a student is chosen randomly in the class, what is the
probability that the student chosen is a boy or passed the exam

1.
a) Investopedia.com Says: A volatile stock would have a high standard deviation. In
mutual funds, the standard deviation tells us how much the return on the fund is
deviating from the expected normal returns. Is this statement appropriate?
b) In practi

ISOM2500
Tutor: Carey MA
Exercise02 Solution
Short Question
1.
(a)
(b)
(c)
(d)
(e)
2.
(a)
All computer chips produce
1,000 computer chips
The defective rate of all the computer chips (claims that less than 10%)
The sample defective rate from the 1,000 chi

Business Statistics
PAN Baoqian, Kris
ISOM 2500
Topic 3: Estimation
Part b Confidence Interval
What we have done
Descriptive
Statistics
Probability
Random
variables
Discrete
Random
Variable
Continuous
Random
Variable
Sampling
distribution
Simple
Linear
re

4. A company conducted a survey of its employees to determine their attitude toward a
buyout of the company's stock. Each of the company's 1040 employees was asked whether
they favored the buyout and whether they planned to retire within the next 15 years

ISOM 2500
1.
K.H. Chen
(12 points) Shoppers can pay for their purchases with cash, a credit card, or a
debit card. Suppose that the proprietor of a shop determines that 60% of her
customers use a credit card, 30% pay with cash, and the rest use a debit ca

ISOM 2500
1.
Solutions to Problem Set 1
K.H. Chen
(8 points) A manufacturer of computer chips claims that less than 10% of its
products are defective. When 1,000 chips were drawn from a large production,
7.5% were found to be defective.
a.
(1) What is the

ISOM 2500
1.
Solutions to Problem Set 4
K.H. Chen
(42 points) The human resource manager of a telemarketing firm is concerned
about the rapid turnover of the firms telemarketers. It appears that many
telemarketers do not work very long before quitting. Th

Outline
1
Game II Review
2
Sampling Distribution of Sample Mean
Sampling Distribution of Sample Proportion
3
Ranges for parameters
Confidence Interval for the Proportion
1 / 14
ISOM 2500 (L1, L2)
Lect 13: Sampling Distribution; CI for p
Spring 2014
1 / 14

Outline
1
Leveraged Outliers
2
Dependent Errors and Time Series
1 / 15
ISOM 2500 (L1, L2)
Lect 20: Lev. Outliers; Depdt Errs & Time Series
Spring 2014
1 / 15
Leveraged Outliers
How Much to Bid?
A contractor is bidding on a project to construct an 875
squ

Outline
1
Quantiles
Value at Risk (VaR)
2
Departures From Normality
Normal Quantile Plot
Skewness and Kurtosis
1 / 14
ISOM 2500 (L1, L2)
Lect 11: Normal Model II
Spring 2014
1 / 14
Quantiles
Example: packaging
Suppose a box of cereal lists the weight as

Outline
1
Normal Random Variable
Normal Probability Distribution
Probabilities as Areas
Central Limit Theorem
2
The Normal Model
Standardizing
Using Normal Tables
The Empirical Rule
1 / 18
ISOM 2500 (L1, L2)
Lect 10: Normal Model I
Spring 2014
1 / 18
Norm

Outline
1
Prediction Intervals
2
Changing Variation
The Problem
Fixing the Problem
1 / 16
ISOM 2500 (L1, L2)
Lect 19: PI, Changing Variation
Spring 2014
1 / 16
Prediction Intervals
The Fishing Case
In managing commercial fishing fleets, it is necessary t

ISOM 2500
1.
Solutions to Problem Set 3
K.H. Chen
(8 points) A statistics practitioner took a random sample of 50 observations from a
population with a standard deviation of 25 and computed the sample mean to be 100.
a.
(2) Compute a 90% confidence interv

ISOM 2500
1.
Solutions to Problem Set 2
K.H. Chen
(12 points) Shoppers can pay for their purchases with cash, a credit card, or a
debit card. Suppose that the proprietor of a shop determines that 60% of her
customers use a credit card, 30% pay with cash,

ISOM 2500
1.
K.H. Chen
(42 points) The human resource manager of a telemarketing firm is concerned
about the rapid turnover of the firms telemarketers. It appears that many
telemarketers do not work very long before quitting. There may be a number
of reas

ISOM 2500
1.
c.
d.
(2) Compute a 95% confidence interval estimate of the population mean.
(2) Repeat part (a) if the sample size is 100 instead of 25.
(2) Repeat part (a) if the sample size is 400 instead of 25.
(2) Describe what happens to the confidence