SB2023 Dr.

Le Anh Tuan

Session 3. Homework

S3.1 Suppose you have $150,000, you would like to invest $80,000 in Vinamilk stock whose
expected return is 15%, $20,000 in commercial banks whose expected return is 9%, and the
remaining money for government bond whose expected return is 10%. Find the expected return of
your investment.

S3.2 For a symmetric bell-shaped population with a mean of 30 and standard deviation of 4,
what interval will contain?
a. About 95% of all the values.
b. About 99.7% of all values.

S3.3
The following numbers are the minutes of training for 25 new employees in a manufacturing
company.
5 229 49 483 25 34 37 125 14
7 64 192 22 23 453 18 34
47 67 69 21 24 12 14 14

a. Calculate the mean, mode, median, variance, and standard deviation for this sample.
b. Calculate Coefficient of Variation
c. Find lower and upper quartiles, median, and interquartile range (IQR). Check for any
outliers.
d. Construct a box plot. Do the data appear to be symmetrically distributed along the
measurement axis?

S3.4
The number of people visiting a restaurant each day, for 11 days, is listed below.

104 131 120 115 109 124 128 118 116 120 125

(a) Using the 10’s digit as the stem, complete an ordered stem and leaf diagram for this
information.
Keys: 10|4 means 104

Stem Leaf

(b) Write down the mode, median, and range.

(c) Are the data skewed?
SB2023 Dr. Le Anh Tuan

S3.5
The box & whisker graph below which shows average minutes per days spent on the Internet.

a. What percent of the sample spend more than 96 minutes on the Internet per day?
b. What was the median time?
c. What is the range of times that the middle 50% of the sample spend on the Internet per
day?
d. What are the maximum minutes spent on the Internet?
e. How many people do not spend time for the Internet?
f. A person who have spent 125 minutes for the Internet per day is considered as outliers?
How about 25 minutes?

S3.6 (Practice1 Dataset)

Using Excel or STATA, answer the following questions:
a. Find a Mean, Median, SD, Variance, Min, Max of ASSETS, and ROA
b. Find the first and 99th percentile of ASSETS
c. Find the first and third quartile of Revenue
d. What is the range of ROA that the middle 50% of the sample have?
e. What percent of the sample have less than 54 employees in the company?
f. Find the correlation matrix for ROA, EMPLOYEE, ASSETS, EMPLOYEE.
g. From (f), what do the sample correlation coefficients suggest about the relationship
between:
- Employee and Revenue
- Assets and ROA
- Employee and ROA
h. Find the mode of industry, firm type, firm size, and customer complaints.

S3.7
Henry is considering two financial assets for investment, asset A and asset B. He is not sure which
of these two single assets is better. He is aware that the most popular indication of the risk or
variability of a particular asset is the standard deviation, abbreviated as s, which measures the
variation of returns around an asset’s mean. In the market, he considers two situations, before and
after Covid-19. He calculates the means and standard deviations of each asset, and obtains the
following Tables:
Return Rates
Asset A Asset B
Mean of Return Rates
Before Covid-19 18% 18%
After Covid-19 6% 14%
Stand Deviation in Return Rates 1.2 1.7
Give your advice about the financial assets that he should invest
(i) Before the Covid-19
SB2023 Dr. Le Anh Tuan

(ii) After the Covid-19

S3.8
The lifetime of an iPhone battery in days is as follows:

1000 1021 850 920 991 939 1105 989 700 800 950 1200 950

a. Find a mean, median, mode time.

b. Find a range, variance, standard deviation, and coefficient of variance.
c. If the population's shape is unknown, describe the lifetime distribution.
d. If the population's shape is bell-shaped, describe the lifetime distribution.
e. Find the z-score for a battery that lasts only 700 days.
f. Find the z-score for a battery that lasts 1,400 days. Is this number usual?

S3.9

For a random sample of 30 customers from a KFC store, the accompanying table shows
the costs of their purchase (in $). The results were as follows:

0<3 3<5 5 <7 7<9 9<11 11<13 13<15

3 4 8 1 7 4 3

a. Estimate the sample mean cost.

b. Estimate the sample standard deviation.
SB2023 Dr. Le Anh Tuan

SOLUTIONS
S3.1
12.5%

S3.2
𝜇 = 30, 𝜎 = 4
a. (30 − 2 ∗ 4,30 + 2 ∗ 4) = (22,38)
b. (30 − 3 ∗ 4,30 + 3 ∗ 4) = (18,42)

S3.3
a. Mean 83.28 Mode 14 Median 34 standard deviation128.36 variance 16,477.54
b. CV=154.14%
c. Q1=18, Q3=67, IQR=49. # of outliers: 4 (192, 229, 453, 483 > Q3+1.5IQR)
d.

BoxPlot

0 100 200 300 400 500 600

#1

S3.4
a.
Frequency Stem Leaf
2 10 49
3 11 568
5 12 00458
1 13 1
11

b. Mode=120, median=120, and range=27.

c. Mean=119<120 => left skewness.

S3.5
a. 25%
b. 88 minutes
c. 72 – 96
d. 102 minutes
e. Cannot say
f. LB=72-1.5*(96-72)=36, UB=96+1.5*(96-72) =132 => 25 is an outlier while 125 is not.
SB2023 Dr. Le Anh Tuan

S3.7
(i) Before Covid-19, Mean(A) = Mean(B), sd(B) > sd (A) => invest A.
(ii) After Covid-19, CV(A)=1.2/6=20%, CV(B)=1.7/14=12% => invest B. The coefficient of
variation tells us that for asset A the sample standard deviation is 20% of the mean, and for
asset B the sample standard deviation is only 12% of the mean. The risk of B is lower than
risk than A.

S3.8
a. Mean=955, Median=950, Mode=950
b. Range =500, Var=16,080.33, SD=126.81, CV=13.28%
c.
Suppose z=1.5 => 55.6% of population will fall in the intervals (955-1.5*126.81,
955+1.5*126.81)=( 764, 1145)….
d.
95% of population will fall in the intervals (955-2*126.81, 955+2*126.81)=( 701, 1208).
…..
e. Zscore=(700-955)/ 126.81=-2.01
f. Zscore=(1400-955)/ 126.81=3.5 > 3 => outlier

S3.9
Please follow Lecture notes.