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 Suppose a random sample of 38 sports cars has an average annual fuel cost of K2218 and the standard deviation was K523. Construct a 90% confidence interval for μ. Assume the annual fuel costs are normally distributed.


3 A random of sample of size 25 is taken with replacement from a population with 121.4 and 50.5. 4. A random sample of 20 independent observations is taken from a population with p = 23.8 and a = 5.

State the NULL and the ALTERNATIVE HYPOTHESES of the following statements in symbols and in word, write if it is TWO-TAILED TEST or ONE-TAILED TEST.

  1. The enrollment in Catarman National High School this school year rises by 10%.
  2. The number of male grade 11 students is identical to the number of female students.
  3. The Catarman National High School wants to test if the students in Grade 11 prefer modular learning as the method of instruction.


From 1-3 :

Null Ho:

Hypotheses H1:

Alternative Ho:

Hypotheses H1:



Determine the notation ("\\mu,\\sigma,\\rho,\\sigma^2" ), symbols (= , "\\ne" , <, >, "\\le, \\ge" ), and value of the parameter:

  1. Average salary of University of Eastern Philippines (UEP) graduates is at most ₱ 324, 000.
  2. The standard deviation of students riding a tricycle from Catarman to Dalakit is 1.5
  3. The Department of Education offers a mean of 14 days of vacation for students from May 2-13.
  4. Passing rate of students in Statistics and Probability Philippines is below 60%.
  5. Mean number of teachers in Catarman National High School is at most 1.9


Notations Symbols Value

  1. "\\le"
  2. =
  3. 14
  4. .60
  5. "\\mu"

2. Classify each statement as an example of classical probability, empirical

probability, or subjective probability.

a. The probability that a person will watch the 6 o’clock evening news is 0.15.

b. The probability of winning at a Chuck-a-Luck game is 5

36

.

c. The probability that a bus will be in an accident on a specific run is about 6%.

d. The probability of getting a royal flush when five cards are selected at random

is 1

649,740

.



           Oil                             0.2

           No oil                         0.8

 

It is possible for Shell ltd to hire a firm of international consultants to carry out a complete survey of the site. Shell ltd has used the firm many times before and has made the following estimates:

 

1.     If there really is oil, then there is a 95% chance that the report will be favourable.

2.     If there is no oil then there is only a 10% chance that the report will indicate that there is oil.

 

The following additional information is also provided:

·        The cost of drilling is Sh.10 million.

·        The value of the benefits if oil is found is Sh.70 million

·        The cost of obtaining information is Sh.3 million.

 

Required:

a)     Advise the company on whether to acquire additional information from the consultants                                                                            (16 marks)

b)     Compute the value of imperfect information.                        (4 marks)



5. Drawing a Card: If a card is drawn from a deck, find the probability of 

getting these results: 

a. A 6 and a spade 

b. A black king 

c. A red card and a 7 

d. A diamond or a heart 

e. A black card


4. Rolling Two Dice: If two dice are rolled one time, find the probability of 

getting these results. 

a. A sum of 9 

b. A sum of 7 or 11 

c. A sum greater than or equal to 10


3. Rolling a Die: If a die is rolled one time, find these probabilities. 

a. Getting a 2 

b. Getting a number greater than 6 

c. Getting an odd number 

d. Getting an odd or even number


2. Classify each statement as an example of classical probability, empirical 

probability, or subjective probability.

a. The probability that a person will watch the 6 o’clock evening news is 0.15.

b. The probability of winning at a Chuck-a-Luck game is 5/36.

c. The probability that a bus will be in an accident on a specific run is about 6%.

d. The probability of getting a royal flush when five cards are selected at random 

is 1/649,740.

.


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