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

An investor who can correctly forecast the direction and size of changes in foreign currency
exchange rates is able to reap huge profits in the international currency markets. A knowledgeable
reader of the Wall Street Journal (in particular, of the curren

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

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,

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

4.1 Confidence interval
is the probability for your interval that include the population mean
In [1]:
from scipy.stats import norm
b=norm.ppf(0.95,0,1)
print b
c=b=norm.ppf(0.05,0,1)
print c
1.64485362695
-1.64485362695
In [2]:
norm.ppf(0.975,0,1)
Out[2]:

Topic 2. Probability , Distribution
and Random Variable
2.1 Probability
Probability is a measure of the likelihood that an event will happen
P(A)
takes values in $[0,1]$
when $P(A)\rightarrow 1$, $A$ is more likely to occur
Mutually Exclusive: Events are

Bivariate Analysis
Evaluate association among variables
Association means any relationship of variables render them statiscally dependent
Contingency table
In statistics, a contingency table is a type of table in a matrix format that displays the
(multiva

In [1]:
print 5/10 #python will automatically treat it as an integer
print 5/10.0 #if i need to find out the ans, I should force it into float
print float(5)/10 #or print 5/float(10)
0
0.5
0.5
In [2]:
alist=[3,2,10,20,30]
for anyitem in alist:
if anyitem<

In [1]:
a=10
print a
10
Integer:eg. 1000,1,2,3
Float:decimal place
String: text,image
List: container of every thing
In [2]:
b=1000
print b
1000
In [3]:
b=1000
print type(b) #this indicates that b is an integer
<type 'int'>
In [4]:
c=1.2
print c #show the

ISOM 2500
1.
Key Learning Objectives
2.
K.H. Chen
Topic 3: Inferential Statistics
Part I: Inference about a Population
This lesson presents the materials related to making inference on population
mean: computation of confidence interval, determination of

(ISOM2500)[2015](s)midterm~skyau^_91254.pdf downloaded by mkbmakpolo from http:/petergao.net/ustpastpaper/down.php?course=ISOM2500&id=6 at 2017-02-22 20:24:14. Academic use within HKUST only.
ISOM 2500
Sample Questions Solution_ Exam 1
K.H.Chen
Problem 1

ISOM2500 Business Statistics
Tutorial
Inferential Statistics
One-Sample Z test for
dataset : income.csv (Given 2 = 900)
Stat > Basic Statistics > 1-Sample Z
One-Sample Z test for
Samples in columns: Income
Standard deviation: 30
Hypothesized mean: 250
O

For further information
contact:
Triangle Mall
Management,
TriCities Office,
1 Triangle Square,
Glen Meadows
proposal for
As Sunflowers looks to expand its operations this year, we feel that there is a natural fit between
your company's goals and our prov

ISOM2500 Business Statistics
Tutor: Carey MA
Assignment02 Solution
1. Let X = corporate bond fund and Y = common stock fund.
a. (4 points)
E(X) = -200*0.01+(-70) *0.09+30*0.15+80*0.35+100*0.30+120*0.10
= $66.2
E(Y) = -999*0.01+(-300) *0.09+(-100) *0.15+10

Data Container (Data type)
Integer
Float
List
Array
Tuple
Numpy array
Pandas
Integer
In [1]:
a=10
print type(a)
<type 'int'>
In [2]:
print 10/20
print float(10)/float(20)
# if we print 10/20, it will show 0, just because both of them are integers, the
pro

3.1 Discrete Uniform Random
Variable
A Variable take finite possible values equally likely, X takes [1,2,100,10000] equallly likely
numpy.random.randint(low, high=None, size=None): Return random integers from low
(inclusive) to high (exclusive).
low :Lowe

Simple Linear Regression
A Brief History of Regression :
Francis Galton's (1822-1911), the renowned British biologist and scientist,
perhaps more than anyone else is responsible for making regression analysis
an important and useful tool in statistics. On

Simple Regression Model
Inference
I: Basic Model
Prediction using regression
Production Time (min)
1600
y = 2.4427x + 171.75
R = 0.8562
1400
1200
Production Time (min)
In regression, we care about two variables in a
population.
Example: when the clients

Hypothesis Tests
Part b
Hypothesis Testing Process
0 : the proportion of
spams next year is greater
than 0.2
Population
The sample
proportion is
0.12
Is p = 0.12 closed to 0.2
?
Sample:
100
Method I: critical value method
Hypothesis tests rely on a stati

Questions for Homework 2
1. A uniformly distributed random variable has minimum and maximum value of 10 and 40
respectively. Find the mean and variance of this distribution.
2. The following is the density function is the density function for the random v

Questions for homework 3- Hypothesis testing
One sample test for mean
1. [11.7]
0 : = 1000
1 : 1000
= 200, = 100, = 980, = 0.01
Calculate the value of the test statistic, set up the rejection region, determine the p- value,
interpret the result, and draw

Transformation
Detecting Nonlinear Patterns
What improvement in mileage should a manufacturer expect
from reducing the weight of a car by 200 pounds?
Use
40
35
30
Combined MPG
regression analysis
to find an equation that
summarizes the
association betwee

ISOM2500 Practice Final
1. The current no-smoking regulations in office buildings require workers who
smoke to take breaks and leave the building in order to satisfy their habits. A
study indicates that such workers average 32 minutes per day taking smoki

ISOM 2500
Solutions to Problem Set 1
K.H.Chen
1.
(4 Points) Exercise 1.3 on page 9
a. An election to vote a mayor.
b. 200 registered voters.
c. Statistic.
The statistic here is defined as the proportion of the registered voters votes.
2.
(5 Points) Exerci

Business Statistics, ISOM2500
Assignment II
Due: Apr 14, 2015, 5pm
Submit to the assignment box near LSK 4065.
Questions 4, 6, 8, 11, 12 and 15 in Practice Quiz II. Show all your work: your reasoning, steps you took
to obtain your answers.

Business Statistics, ISOM2500
Assignment I
Due: March 11, 2015, 5pm
Submit to the assignment box near LSK 4065.
Questions 2, 10, 11, 15, 21 and 23 in Practice Quiz I. Show all your work: your reasoning, steps you took
to obtain your answers.