Mba 510 Problem Set 1

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Lind Chapter 3: Exercise 60
Owens Orchards sells apples in a large bag by weight. A sample of seven bags contained the following numbers of apples: 23,19,26,17,21,24,22. a. Compute the mean number and median number of apples in a bag.Total number of Problems = 11 Mean = (23+19+26+17+21+24+22)/7 = 21.71Problems correct = 8 Median = 22CORRECT

List of # in order from low to high: 17,19,21,22,23,24,26 List of # in order from high to low: 26,24,23,22,21,19,17

b. Verify that Σ(x-xbar) = 0.
(17-21.71)+(19-21.71)+(21-21.71)+(22-21.71)+(23-21.71)+(24-21.71)+(26-21.71) ≈ 0

Lind Charpter 3: Exercise 62
The Citizens Banking Company is studying the number of times the ATM lcoated in a Loblaws Supermarket at the foot of Market Street is used per day. Following are the numbers of times the machine was used over each of the last 30 days. Determine the mean number of times that machine was used per day. n = 30

83 64 84 76 84 54 75 59 70 61
63 80 84 73 68 52 65 90 52 77
95 36 78 61 59 84 95 47 87 60
Mean = (83+64+84+76+84+54+75+59+70+61+63+80+84+73+68+52+65+90+52+77+95+36+78+61+59+84+95+47+87+60)/30 Mean = 2116/30CORRECT
Mean = 70.53
The mean number of times that machine was used per day = 70.53

Lind Chapter 3: Exercise 68
The American Automobile Association checks the prices of gasoline before many holiday weekends. Listed below are the self-service prices for a sample of 15 retail outlets during the May 2003 Memorial Day weekend in the Detroit, Michigan, area. 1.44, 1.42, 1.35, 1.39, 1.49, 1.49, 1.41, 1.46,

1.41, 1.49, 1.45, 1.48, 1.39, 1.46, 1.44,
N=15
a. What is the arithmetic mean selling price?
µ= (1.44+1.42+1.35+1.39+1.49+1.49+1.41+1.46+1.41+1.49+1.45+1.48+1.39+1.46+1.44)/15 µ= 21.57/15
µ= 1.44

b. What is the median selling price?
List of # in order from low to high: 1.35,1.39,1.39,1.41,1.41,1.42,1.44,1.44,1.45,1.45,1.46,1.48,1.49,1.49,1.49CORRECT List of # in order from high to low: 1.49,1.49,1.49,1.48,1.46,1.45,1.45,1.44,1.44,1.42,1.41,1.41,1.39,1.39,1.35 Median = 1.44

c. What is the modal selling price?
Modal = 1.49

Lind Chapter 3: Exercise 70
A recent article suggested that if you earn $25,000 a year today and the inflation rate continues at 3 percent per year, you’ll need to make $33,598 in 10 years to have the same buying power. You would need to make $44,771 if the inflation rate jumped to 6 percent. Confirm that these statements are accurate by finding the geometric mean rate of increase. Geometric Mean (GM) =( n√Value at end of period/value at beginning of period)-1 n = 10 years, value at beginning of period = 25000 value at end of period @ 3% inflation= 33598

GM = (10√33598/25000)-1
GM = 10√1.34-1
GM = 1.03-1
GM = 0.03
value at end of period @ 6% inflation = 44771CORRECT GM = (10√44771/25000)-1
GM = 10√1.79 -1
GM = 1.06-1
GM = 0.06

Lind Chapter 3: Exercise 72
The weights (in pounds) of a sample of five boxes being sent by UPS are: 12, 6, 7, 3, and 10 a. Compute the range.
Range = Largest value - Smallest value
Range = 12-3
Range = 9

b. Compute the mean deviation.
Xbar = ∑X/n
Xbar = 12+6+7+3+10/5
Xbar = 7.6
Mead Deviation (MD) =...
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