Assignment Week 7 Haris FA18 BEE 061
Assignment Week 7 Haris FA18 BEE 061
Question 1 [5 Marks]
Let 𝑋1 , 𝑋2 , … . . , 𝑋𝑛 be a random sample of a Poisson random variable 𝑋 with unkown parameter
𝜆.
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a) Analyse the problem to show that , Λ1 = 𝑛 ∑𝑛𝑖=1 𝑋𝑖 𝑎𝑛𝑑 Λ2 = 2 (𝑋1 + 𝑋2 ) are
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Question 2 [5 Marks]
Consider a normal random variable with variance 𝜎 2 = 1.66 and unknown mean 𝜇.
Analyse the problem to find the 95 % confidence interval for the mean based on a random sample
of size. 10.
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Question 3 [5 Marks]
A chief executive officer (CEO) of an IT company claims that the employees in his company, all
have above average intelligence. A random sample of thirty employees IQ scores have a mean
score of 112. The mean population IQ is 100 with a standard deviation of 15. IQ scores are
normally distributed. Use a level of significance 𝛼 = 5 %.
A. Describe the null and alternate hypothesis.
B. Infer whether there is sufficient evidence to support the CEO’s claim, through
appropriate step by step procedure?
Refer to z-table (Table 1) attached here
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Question 4 [5 Marks]
An electrical firm manufactures light bulbs that have a length of life that is approximately
normally distributed with a standard deviation of 40 hours. If a sample of 30 bulbs has an average
life of 780 hours, find 96% confidence interval for the population mean of all bulbs produced by
this firm. Infer, as to how large a sample is needed if we wish to be 96% confident that our sample
mean will be within 10hours of the true mean?
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Table 1
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