COMSATS University Islamabad, Wah Campus

Terminal Examinations Spring 2020

Department of Mathematics

Program/Class: BSE/BCS/BME Date: 20/08/2020

Subject: Statistics and Probability Theory Instructor: Maryam Murtaza
Total Time Allowed: 5 Hrs. Maximum Marks: 50
Student Name: Registration#:
_______________________________ _______________________________

NOTE:
The following instruction MUST be followed in Online Final Exam SP2020, (PLEASE READ
CAREFULLY).
1. Solve all questions on A4 Blank sheets in SAME ORDER as given in question paper
(COMPUTER TYPED SOLUTION WILL NOT BE ACCEPTABLE).

2. Write down Serial No., Reg No. and Student Name clearly on every sheet’s top right: for
example, in short as 1. FA18-BBA-786 Student Name respectively.

3. Make single PDF file of your answer sheet and rename containing Serial No., Reg No. &
Student Name for example as: 1. FA18-BBA-786 Student Name (Copy the highlighted text as
file name and change accordingly).

4. Upload the file “1. FA18-BBA-786 Student Name.pdf” at Cu-Online (assignment section)
within given time on your question paper.

5. Each and every question is self-explanatory, so please read all question carefully and give
answers as required.
6. The actual time of paper will be 3 hours but I will give 5 hours (2 hours extra for uploading),
so no excuse will be accepted about uploading, hence manage your time and resolve your issues
before exam accordingly.

It is humble reminder that no tolerance will be shown regarding above instructions.

Q1: CLO2, PLO2, C3

Attached is the data for AGE (Y) of 150 CEO’s and their Tenure (X) taken from the book
Introduction to Economics by Stock and Watson. The average age is 56.17and average tenure is
7.28 whereas variation in variable AGE is 34.42 and variation in variable TENURE is 51.61. The
covariation between both variables 11.99. Use the concept of measure of central tendency and
measure of dispersion to solve the following parts:
a) Suppose a constant 4 is added to each observation of the variable AGE and a constant 2 is
added to each observation in variable TENURE. What would be new mean and variance
of both variables? (2.5)
b) Suppose a constant 1.2 is multiplied to each observation of the variable AGE and a
constant 1.2 is multiplied to each observation in variable TENURE. What would be new
mean and variance of both variables? (2.5)
c) Suppose each observation in both variables increased by 5%, what would be the effect on
mean and variance of both variables. (5)

Q2: CLO2, PLO2, C3

a) A group of friends decided to visit hill station (say H) in their vacations. To reach their
destination they can follow two routes. The first directly connects H to K, whereas the
second passes through G. Sometimes because of the weather conditions (snow falling),
travelers cannot travel between B and A. If there is a forecast of snow for the next day, one
can assume (on the basis of prior information) P(H) = 0.6, P( K) = 0.7, P(G) = 0.4, P(G|K) =
0.5 and P(H | GnK) = 0.4. Use the concepts of probability to find out the probability:
i. That the traveler will be able to reach K from H? (2)
ii. That the traveler will be able to drive from H to K by way of G? (2)
 iii. Which route should be taken in order to maximize his chance to reach K? (2)

b) A box contains 4 pink balls 3 yellow marbles. A marbles is drawn. If the marbles is pink, it is
kept out of the box and a second marbles is drawn from the box. If the marbles is yellow, then It
is put back in the box and a pink marbles is added to the box. Then a second marbles is drawn
from the box. Use the concepts of probability to find out the probability:

i. that both marbles drawn are pink? (2.5)

ii. If the second drawn marbles is pink, what is the probability that the first drawn marble
was yellow? (2.5)

Q3: CLO2, PLO2, C3

a) A Cumulative Distribution function of a random variable is given

Use the concept of random variable and its probability density function to find:
i. Find Var (X) (2.5)
ii. Find P(X<0.8). (2.5)

b) A coaching academy divides its students into 2 groups. Forty percent of students
are in the high caliber group, and sixty percent are in the low caliber group. The high
caliber Students make an average of 1 mistake in final exam while the low caliber make an
average of 4 mistakes in final exam. Ronaldo had made no mistake in last year final exam.
 Use the suitable probability distribution function to find the probability that he is a high
caliber student? (5)

Q4: CLO2, PLO2, C3

a) The amusement park administration chain has studied its customers to determine how
much money they spend on concessions. The study revealed that the spending
distribution is approximately normally distributed with a mean of $4.11 and a standard
deviation of $1.37. Use the unit normal distribution area table to find the percentage of
customers spend less than $3.00 on concessions? (4)

b) Let X be normally distributed with mean µ and standard deviation . So that P(X ≤ 45) =
0.90 and P(X ≥ 84) = 0.05. Use the unit normal distribution area table to find µ and .
(2)
c) The heights of candidates to the military force are normally distributed with mean 165 cm
and standard deviation 2.5 cm. If 30% of applicants are rejected because they are too
small, Use the unit normal distribution area table to find the minimum acceptable height
for the military force? (4)

Q 5: (CLO1-PLO1-C2)

For the attached data, regress the variable AGE on TENURE, find and report the
estimates by using method of least square. Report the correlation between both variables
and also interpret it. (10)
TENURE AGE TENURE AGE
7 61 18 60
0 51 5 51
11 63 14 59
6 60 3 53
18 63 0 51
6 57 2 55
15 60 8 58
5 61 28 53
3 57 28 54
2 60 2 55
16 63 12 63
5 61 4 62
7 58 1 57
4 59 1 46
0 56 8 64
2 60 0 44
4 60 2 51
32 74 8 62
5 63 8 55
3 56 4 61
4 52 8 62
15 57 7 60
17 55 18 43
5 56 14 49
4 57 2 56
2 56 29 68
2 52 10 64
2 49 2 52
9 57 17 53
9 59 1 61
5 58 12 61
10 62 26 63
1 59 1 66
2 55 1 49
0 53 5 58
5 57 6 58
15 55 5 56
7 59 6 62
4 56 19 66
6 49 0 57
11 63 9 49
2 50 5 52
10 60 3 60
2 56 11 58
15 57 14 45
3 54 0 44
15 57 1 56
11 55 4 47
0 60 7 51
TENURE AGE TENURE AGE
2 46 3 55
0 46 3 57
2 62 9 57
6 55 10 61
0 54 5 62
24 62 1 52
2 56 13 43
6 53 0 48
7 51 22 67
0 52 4 58
3 60 4 45
1 52 24 61
6 60 1 51
2 52 1 56
4 60 2 57
4 52 12 57
5 65 3 58
15 34 0 53
12 57 9 55
14 57 0 61
2 53 1 50
5 63 17 59
4 61 10 59
8 51 6 55
4 58 15 44
35 61 1 43