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Set+1 Descriptive+statistics+Probability+

This document discusses topics related to descriptive statistics and probability. It includes examples of plotting data to identify outliers and calculate measures like the mean, standard deviation, and variance. Questions are asked about interpreting box plots and histograms, including comments on skewness and how the graphs complement each other. Probability questions calculate the likelihood of certain outcomes, such as the probability of a certain number of misdirected phone calls, and analyzing the expected returns and risk of a business venture based on a given probability distribution.

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Syed Zubair
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3K views4 pages

Set+1 Descriptive+statistics+Probability+

This document discusses topics related to descriptive statistics and probability. It includes examples of plotting data to identify outliers and calculate measures like the mean, standard deviation, and variance. Questions are asked about interpreting box plots and histograms, including comments on skewness and how the graphs complement each other. Probability questions calculate the likelihood of certain outcomes, such as the probability of a certain number of misdirected phone calls, and analyzing the expected returns and risk of a business venture based on a given probability distribution.

Uploaded by

Syed Zubair
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Topics: Descriptive Statistics and Probability

1. Look at the data given below. Plot the data, find the outliers and find out 𝜇, 𝜎, 𝜎 2
0.3327133, 0.169454, 0.02871466

Name of company Measure X


Allied Signal 24.23%
Bankers Trust 25.53%
General Mills 25.41%
ITT Industries 24.14%
J.P.Morgan & Co. 29.62%
Lehman Brothers 28.25%
Marriott 25.81%
MCI 24.39%
Merrill Lynch 40.26%
Microsoft 32.95%
Morgan Stanley 91.36%
Sun Microsystems 25.99%
Travelers 39.42%
US Airways 26.71%
Warner-Lambert 35.00%

Morgan Stanley is an outlier of 91.36

Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)
2. Analyze the Below Charts:

Answer the following three questions based on the box-plot above.


(i) What is inter-quartile range of this dataset? (please approximate the numbers) In one
line, explain what this value implies. i.q range from 5 to 12 . viscous 0 to19. And 1 outlier
(ii) What can we say about the skewness of this dataset?left skewness
(iii) If it was found that the data point with the value 25 is actually 2.5, how would the new
box-plot be affected? It scale the chart

3.

Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)
Answer the following three questions based on the histogram above.
(i) Where would the mode of this dataset lie? 4 to 8
(ii) Comment on the skewness of the dataset. leftskewness
(iii) Suppose that the above histogram and the box-plot in question 2 are plotted for the
same dataset. Explain how these graphs complement each other in providing
information about any dataset. We cant diff mode in box plot but we can do that in hist

4. AT&T was running commercials in 1990 aimed at luring back customers who had switched to
one of the other long-distance phone service providers. One such commercial shows a
businessman trying to reach Phoenix and mistakenly getting Fiji, where a half-naked native on a
beach responds incomprehensibly in Polynesian. When asked about this advertisement, AT&T
admitted that the portrayed incident did not actually take place but added that this was an
enactment of something that “could happen.” Suppose that one in 200 long-distance telephone
calls is misdirected. What is the probability that at least one in five attempted telephone calls
reaches the wrong number? (Assume independence of attempts.)
1/200 . 0.025

5. Returns on a certain business venture, to the nearest $1,000, are known to follow the following
probability distribution
x P(x)
-2,000 0.1
-1,000 0.1

Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)
0 0.2
1000 0.2
2000 0.3
3000 0.1

(i) What is the most likely monetary outcome of the business venture?
The most likely monetary outcome of the business venture: 𝑥 = 2,000 with the highest
probability of 0.3
(ii) Is the venture likely to be successful? Explain
The venture is likely to be successful, because (𝑥 = 1,000) + (𝑥 = 2,000) + 𝑃(𝑥 = 3,000) =
0.2 + 0.3 + 0.1 = 0.6
(iii) What is the long-term average earning of business ventures of this kind? Explain
= (0.1)(−2,000) + (0.1)(−1,000) + (0.2)(0) + (0.2)(1,000) + (0.3)(1,000) + (0,1)(3,000)= 800.
(iv) What is the good measure of the risk involved in a venture of this kind? Compute this
measure
Is standard deviation
sd
[1] 0.08164966

Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)

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