MAT 201

HOMEWORK 5

1. The duration of mobile calls made through Imxi MobCo are known to follow approximately the
exponential distribution with mean 100 seconds. To work out a suitable pricing policy, the marketing
department of the company would like to find out the maximum duration of the lowest 10% of calls
for which the charge will be 1 unit. For calls lasting between this value and the one which captures
the lowest 50% of call the tariff will be 2 units. For calls which last longer than the shortest 50% the
charge will be 5 units.

Work out the pricing bands and the average price of a call.
Solution:
Mean (μ) is 100 seconds.
For this distribution, (σ = μ).
The standard deviation is also 100 seconds.

The value of the distribution at the 10th percentile (P10) is given by the formula P10 = -ln (1
- 0.10) * μ.
Substituting μ = 100 seconds, we get P10 = -ln (1 - 0.10) * 100 = 23.03 seconds.

The value of the distribution at the 50th percentile (P50) is given by the formula P50 = -ln (1
- 0.50) * μ.
Substituting μ = 100 seconds, we get P50 = -ln (1 - 0.50) * 100 = 69.31 seconds.

The pricing bands:

Average price of a call:

2. The distribution of systolic blood pressure in young females is approximately normal with mean
110 mm of mercury with a standard deviation of 13.5. 90mm is considered to be too low while 120
is considered too high. Find the percentage of persons whose pressure lies outside the safe limits. An
insurance company is working out a premium component which is tied to the heart condition of
their clients. For low pressure clients their charge would be 50 euros, for the ones with high pressure
the fee would be 80 euros, while for those within the acceptable range, the charge would be 20
euros. Calculate the average amount the company would expect from 100 clients.

LS 2023
Formula:
x−μ
z=
σ
The z-score for the lower limit of the safe range (90 mmHg):
90−110
z=
13.5
= -1.63 Thus: the percentage of the distribution that lies to the left of -1.63 is 5.2%.
The z-score for the upper limit of the safe range (120 mmHg):
12 0−110
z=
13.5
= 0.74 Thus: the percentage of the distribution that lies to the left of 0.74 is 77.7%.
The percentage of persons whose pressure lies below 90 mmHg:
= 100% - 5.2%
= 94.8%
The percentage of persons whose pressure lies above 120 mmHg:
= 100% - 77.7%
= 22.3%
3. The waiting times of 100 Uber cabs to arrive after a mobile booking were noted and are
reproduced as DATA1 in HW5.xlsx
Construct a frequency table, work out summary statistics, display a histogram and state which
distribution you consider suitable to fit to the data.

Frequency table:
Bins Frequen
cy
0.2 36
0.4 24
0.6 11
0.8 6
1 6
1.2 6
1.4 3
1.6 4
1.8 2
2 0
2.2 0
2.4 1
2.6 0
2.8 1
More 0

LS 2023
Summary statistics:
DATA1

Mean 0.496814
55
Standard Error 0.052511
604
Median 0.294474
022
Mode #N/A
Standard Deviation 0.525116
042
Sample Variance 0.275746
857
Kurtosis 3.901405
487
Skewness 1.823018
026
Range 2.786587
583
Minimum 0.004163
546
Maximum 2.790751
129
Sum 49.68145
505
Count 100
Largest(1) 2.790751
129
Smallest(1) 0.004163
546
Confidence Level(95.0%) 0.104194
415

Histogram:

Histogram
40
30
Frequency

20
10
0
0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6 2.8 More
Bins

Frequency

LS 2023
Distribution:

4. The weights in grams of 100 Portobello mushrooms grown at Mdina Nurseries were measured
and recorded as DATA2 in HW5.xlsx
Construct a frequency table, work out summary statistics, display a histogram and state which
distribution you consider suitable to fit to the data.
Frequency table:
Bins Frequency
5 0
7 1
9 5
11 11
13 18
15 19
17 25
19 14
21 4
23 2
25 1
More 0

Summary statistics:
DATA2

Mean 14.26286
432
Standard Error 0.329376
017
Median 14.15341
874
Mode #N/A
Standard Deviation 3.293760
169
Sample Variance 10.84885
605
Kurtosis 0.081465
134
Skewness 0.011849
609

LS 2023
 Range 18.56144
081
Minimum 5.414508
258
Maximum 23.97594
907
Sum 1426.286
432
Count 100
Largest(1) 23.97594
907
Smallest(1) 5.414508
258
Confidence Level(95.0%) 0.653553
476

Histogram:

Histogram
30
25
20
Frequency

15
10
5
0
5 7 9 11 13 15 17 19 21 23 25 More
Bins

Frequency

Distribution:

LS 2023