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Practice Set 2

1) The manager monitors daily shipments of packages by weight. Based on historical data, package weights have a mean of 22 lbs and standard deviation of 5 lbs. A sample of 25 packages is taken daily. Given 100 days of daily average weights, the approximate standard deviation of the daily averages is 0.5 lbs. 2) An education startup targets MBA applicants who took the GMAT in 2022. The population of scores has a mean of 720 and standard deviation of 120. Random samples of applicants will have a standard deviation of the mean scores across many samples of 120. 3) Bank auditors randomly sample 100 daily ATM withdrawals. The population has a mean of $50 and standard deviation of

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41 views2 pages

Practice Set 2

1) The manager monitors daily shipments of packages by weight. Based on historical data, package weights have a mean of 22 lbs and standard deviation of 5 lbs. A sample of 25 packages is taken daily. Given 100 days of daily average weights, the approximate standard deviation of the daily averages is 0.5 lbs. 2) An education startup targets MBA applicants who took the GMAT in 2022. The population of scores has a mean of 720 and standard deviation of 120. Random samples of applicants will have a standard deviation of the mean scores across many samples of 120. 3) Bank auditors randomly sample 100 daily ATM withdrawals. The population has a mean of $50 and standard deviation of

Uploaded by

Roopsi Garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SMMD: Practice set 2

Topic: Sampling distributions and CLT

1. The manager of a warehouse monitors the volume of shipments made by the delivery
team. The automated tracking system tracks every package as it moves through the
facility. Based on current contracts with customers, the weights should have µ = 22
lbs. and σ = 5 lbs. A sample of 25 packages is selected and weighed every day. Suppose
the manager is analyzing data of daily averages for a period of 100 days. What is the
approximate standard deviation of these data?
(a) 5
(b) 1
(c) 0.5
(d) 0.25
2. An educational startup that helps MBA aspirants write their essays is targeting in-
dividuals who have taken GMAT in 2022. There are 40,000 such individuals with an
average GMAT score of 720 and a standard deviation of 120. The scores are distributed
between 650 and 790 with a very long and thin tail towards the higher end resulting in
substantial skewness. Which of the following is likely to be true for randomly chosen
samples of aspirants.
(a) The standard deviation of the scores in any sample will be 120.
(b) The standard deviation of the mean of scores across many samples will be 120.
(c) The mean score in any sample will be 720.
(d) The average of the mean across many samples will be close to 720.
3. Auditors at a small community bank randomly sample 100 withdrawal transactions
made daily at an ATM machine located near the bank’s main branch. Over the past 2
years, the average withdrawal amount has been $50 with a standard deviation of $40.
Since audit investigations are typically expensive, the auditors decide to not initiate
further investigations if the mean transaction amount of the sample is between $45 and
$55. What is the probability that in any given week, there will be an investigation?
(a) 0.789
(b) 0.895
(c) 0.106
(d) 0.211
4. The auditors from the above example would like to maintain the probability of in-
vestigation at no more than 5%. Which of the following is the minimum number of

1
transactions that they should sample if they do not want to change the thresholds of
45 and 55?
(a) 144
(b) 170
(c) 196
(d) 246
5. It is known that the average waiting time at a call center is exponentially distributed
with mean and standard deviation of 2 minutes. Each day, two random samples of 25
callers are selected for comparison. What is the probability that the average waiting
time of the first sample is greater than twice the waiting time of the second sample?
Assume that the conditions of CLT are satisfied for all samples.
(a) 0.523
(b) 0.248
(c) 0.112
(d) 0.013

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