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    Set 4

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    Riya Singh
    This document contains 5 practice problems related to sampling distributions and the central limit theorem. The first problem asks to examine normal quantile plots and identify which indicate nearly normal data, bimodal data, or skewed data. The second problem presents two statements about sampling average package weights from a population with known mean and standard deviation, and asks whether each statement is true or false. The third problem calculates the probability of an investigation given a sample of 100 transactions is taken from a population with known mean and standard deviation, and investigations are initiated if the sample mean is outside a given range. The fourth problem asks what sample size is needed to maintain a 5% probability of investigation given the same population and investigation

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    Set 4

    Uploaded by

    Riya Singh
    125 views2 pages
    This document contains 5 practice problems related to sampling distributions and the central limit theorem. The first problem asks to examine normal quantile plots and identify which indicate nearly normal data, bimodal data, or skewed data. The second problem presents two statements about sampling average package weights from a population with known mean and standard deviation, and asks whether each statement is true or false. The third problem calculates the probability of an investigation given a sample of 100 transactions is taken from a population with known mean and standard deviation, and investigations are initiated if the sample mean is outside a given range. The fourth problem asks what sample size is needed to maintain a 5% probability of investigation given the same population and investigation

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    This document contains 5 practice problems related to sampling distributions and the central limit theorem. The first problem asks to examine normal quantile plots and identify which indicate nearly normal data, bimodal data, or skewed data. The second problem presents two statements about sampling average package weights from a population with known mean and standard deviation, and asks whether each statement is true or false. The third problem calculates the probability of an investigation given a sample of 100 transactions is taken from a population with known mean and standard deviation, and investigations are initiated if the sample mean is outside a given range. The fourth problem asks what sample size is needed to maintain a 5% probability of investigation given the same population and investigation

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    125 views2 pages

    Set 4

    Uploaded by

    Riya Singh
    This document contains 5 practice problems related to sampling distributions and the central limit theorem. The first problem asks to examine normal quantile plots and identify which indicate nearly normal data, bimodal data, or skewed data. The second problem presents two statements about sampling average package weights from a population with known mean and standard deviation, and asks whether each statement is true or false. The third problem calculates the probability of an investigation given a sample of 100 transactions is taken from a population with known mean and standard deviation, and investigations are initiated if the sample mean is outside a given range. The fourth problem asks what sample size is needed to maintain a 5% probability of investigation given the same population and investigation

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    CBA: Practice Problem Set 2

    Topics: Sampling Distributions and Central Limit Theorem

    1. Examine the following normal Quantile plots carefully. Which of these plots indicates that the data
    …
    I. Are nearly normal?
    Ans:- C
    II. Have a bimodal distribution? (One way to recognize a bimodal shape is a “gap” in the
    spacing of adjacent data values.)
    Ans:- B
    III. Are skewed (i.e. not symmetric) ?
    Ans:- A,C,D
    IV. Have outliers on both sides of the center?
    Ans:- A

    2. For each of the following statements, indicate whether it is True/False. If false, explain why.

    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. A sample of 25
    packages is selected and weighed every day. Based on current contracts with customers, the
    weights should have μ = 22 lbs. and σ = 5 lbs.

    (i) Before using a normal model for the sampling distribution of the average package weights, the
    manager must confirm that weights of individual packages are normally distributed.
    TRUE - In this case, at least 30 sample packages must be selected and weighed everyday.
    Based on the central limit theorem, the sampling distribution of the sample mean approach
    normal distribution as the sample size becomes bigger.

    (ii) The standard error of the daily average SE( x ) = 1.


    - TRUE. Standard error equal to standard deviation divided by square root of sample size =
    5/sqrt(25) =1
    3. Auditors at a small community bank randomly sample 100 withdrawal transactions made during the
    week 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. 1.25%
    B. 2.5%
    C. 10.55%
    D. 21.1%
    E. 50%
    Ans:- D

    4. The auditors from the above example would like to maintain the probability of investigation to 5%.
    Which of the following represents the minimum number transactions that they should sample if
    they do not want to change the thresholds of 45 and 55? Assume that the sample statistics remain
    unchanged.

    A. 144
    B. 150
    C. 196
    D. 250
    E. Not enough information

    5. An educational startup that helps MBA aspirants write their essays is targeting individuals who have
    taken GMAT in 2012 and have expressed interest in applying to FT top 20 b-schools. There are
    40000 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 within any sample will be 120.
    B. The standard deviation of the mean of across several samples will be 120.
    C. The mean score in any sample will be 720.
    D. The average of the mean across several samples will be 720.
    E. The standard deviation of the mean across several samples will be 0.60

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