Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
Statistics Midterm Review
Do the questions worth 4 marks first. (1 mark questions will be harder and worth less)
Chapter 1
What is statistics
o A way to get information from data
Descriptive Stats
o Deals with methods of organizing, summarizing and presen
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
CASE STUDY #1
Bret Doerksen0274746, Mike Kalupar0305885, Forrest W. Satz 0272625
Math 1020 FTN05(Statistics), Stephen Hill, Red River College
Due date: February 10th, 2017
CASE 6.2 TO BUNT OR NOT TO BUNT?
In this case, we are trying to find out if we s
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
Part A: Terminology
1) Describe the process of hypothesis testing.
1. Determine where on the bell curve is the test taking place?
2 tail difference, not equal)
1 tail to the left (less than, below, smaller than)
1 tail to the right (more than, greater
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
Part A: Terminology
1) Describe the characteristics of a normal distribution.
The most important of all probability distributions
Bell Shaped, symmetrical around the mean
Defined by two parameters: Standard Deviation and Mean
2) What happens to the normal
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
12
Annuities Due
Concept Questions (Section 12.1)
1. Insurance premium payments, rent payments, lease payments, newspaper and magazine
subscriptions, membership dues.
3. Each payment in an annuity due earns interest for one more payment interval than the
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
11
Ordinary Annuities:
Periodic Payment, Number of
Payments, and Interest Rate
Concept Questions (Section 11.1)
1. The monthly payments will be (ii) more than half as large because you will pay more total
interest if you pay off the loan over 10 years ins
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
8
Compound Interest: Future
Value and Present Value
Concept Questions (Section 8.1)
1. We compound interest when we convert it to principal and calculate subsequent interest
on both the principal and the converted interest.
3. The periodic rate of interes
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
9
Compound Interest: Further
Topics and Applications
Concept Questions (Section 9.1)
1. If FV < PV, the quantity is decreasing in size as time passes. Therefore, the rate of growth
is negative. That is, the value for i is negative.
3. Since the time inter
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
10
Ordinary Annuities:
Future Value and Present Value
Concept Questions (Section 10.1)
1. The two types of annuities are distinguished by comparing the payment interval to the
compounding interval. If the payment interval equals the compounding interval,
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
15
Bonds and Sinking Funds
Concept Questions (Section 15.2)
1. Four variables affecting a bonds price are:
the face value of the bond
the bonds coupon rate
the prevailing market rate of return on bonds
the time remaining until maturity of the bond
Onl
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
3
Ratios and Proportions
Exercise 3.1
1. 12:64 = 3:16
(each term divided by 4)
3. 45:15:30 = 9:3:6
= 3:1:2
5. 0.08 : 0.12 = 8:12
= 2:3
(each term divided by 5)
(each term divided by 3)
(each term multiplied by 100)
(each term divided by 4)
7. 0.84 : 1.4 :
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
13
Annuities: Special Situations
Concept Questions (Section 13.1)
1. The perpetuity has the larger present value. The greater the number of payments in an
annuity, the larger the annuitys present value. Hence, PV(perpetuity) > PV(annuity).
Alternatively,
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
Chapter 8 Continuous Probability Distributions
Normal Distribution the most important of all probability distributions because of its crucial role in statistical
inference. What we calculate under the curve is the area.
The normal distribution is describe
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
To the Student:
Welcome to the study of applications of mathematics to business. Chances are that you already
have some understanding of a number of the topics to which mathematics will be applied. Even
when a topic is unfamiliar, it is rarely abstract. C
Red River College of Applied Arts, Science and Technology
STATISTICS
STATS 1020 MATH

Winter 2014
Arrow of God
Chinua Achebe
First published in 1964
To the memory of my father ISAIAH OKAFOR ACHEBE
This was the third nightfall since he began to look for signs of the new moon. He knew it would come today but he always began his watch three days
before i