Total Marks: This assignment is worth 40 marks (40 % of the total marks in the unit).

**Instructions:**

• Students are required to cover all stated requirements.

• Your answer must be both uploaded to Moodle in word file and handed over a printed copy.

• You need to support your answers with appropriate Harvard style references where necessary.

• Include a title/cover page containing the subject title and code and the name, student id numbers.

• Please save the document as STA101AT1_first name_Surename_Student Number Eg:

STA101AT1_John_Smith_NA20170000

Each of the following question worth 10 marks, please answer all of them. If needed please use Harvard referencing style. There is no word limit, but it is necessary that you provide answers with explanations.

## Question 1: STA101 Statistics for Business

A sample of eight observations of variables x (years of experience) and y (salary in $1,000s) is shown below:

a. Calculate and interpret the co-variance between x and y.

b. Give a possible reason that the co-variance is negative.

c. Calculate the coefficient of correlation, and comment on the relationship between x and y.

d. Give a possible reason that the correlation is negative.

### Question 2:

The L. L. Bean catalog department that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of time was found to be a random variable best approximated by an exponential distribution with a mean equal to 3 minutes.

a. What is the value of , the parameter of the exponential distribution in this situation?

b. What proportion of customers having to hold more than 1.5 minutes will hang up before placing an order?

c. Find the waiting time at which only 10% of the customers will continue to hold.

d. What is the probability that a randomly selected caller is placed on hold for 3 to 6 minutes?

#### Question 3:

A researcher wants to study the average lifetime of a certain brand of rechargeable batteries (in hours). In testing the hypotheses, H0: = 950 hours vs. H1: 950 hours, a random sample of 25 rechargeable batteries is drawn from a normal population whose standard deviation is 200 hours.

a. Calculate the probability of a Type II error when = 1000 and = 0.10.

b. Calculate the power of the test when = 1000 and = 0.10.

c. Interpret the meaning of the power of the test.

d. Review the results of the previous questions. What is the effect of increasing the sample size on the value of ?

##### Question 4:

A production filling operation has a historical standard deviation of 6 ounces. When in proper adjustment, the mean filling weight for the production process is 47 ounces. A quality control inspector periodically selects at random 36 containers and uses the sample mean filling weight to see if the process is in proper adjustment. Using a standardized test statistic, test the hypothesis at the 5% level of significance if the samples mean filling eight is 48.6 ounces.