# BADB1014: What is the probability that a randomly selected rental car costs between \$270 and \$285 per day?

1 An invoice dated December 23 is received with a shipment of basketball equipment from Taiwan on May 18 of the following year. The list price of the equipment is \$3582, with allowed series discounts of 20/10/5. If cash terms of sale are 3/15 ROG, find the amount necessary to pay in full on April 26.

2. A retailer knows that 30% of the apples purchased will spoil and must be thrown out. If they buy 200 baskets of apples for \$0.32 per basket and want a markup of 60% on the selling price, find the selling price per basket of apples.

3. A company paid \$362.40 for an item. The original price was \$491.80, but this was marked down 40%. If the operating expenses are 38% of the cost, find the operating loss and the absolute loss.

4. Sundaram needs \$54,800 to remodel his home. Find the face value of a simple discount note that will provide the \$54,800 in proceeds if he plans to repay the note in 180 days and the bank charges a 6% discount rate.

5. Peter deposited \$25,000 in a savings account on April 1 and then deposited an additional \$4500 in the account on May 7. Find the balance on June 30 assuming an interest rate of 4% % compounded daily.

6. At the end of each year, Shaun and Sherly will deposit \$5100 into a 401k retirement account. Find the amount they will have accumulated in 12 years if funds earn 6% per year.

1. The table below contains the data for time, in seconds, to answer 50 incoming calls to a financial services call center. Answer the following questions.

a. Construct a frequency distribution for the above data set using six classes.

b. Using the result from part (i), calculate the relative frequencies for each class.

c. Construct a frequency histogram for these data.

a. Calculate the mean score.

b. Find the median and mode.

c. Calculate the standard deviation for the sample data.

3. The following table represents the number of minutes that 20 airline passengers had to wait in order to pass through security along with the frequency in each class.

a. Calculate the mean minutes that a passenger waits to pass through security.

b. Calculate the standard deviation for the data.

4. According to a report, the average cost to rent a full-size car is \$250 per day. Suppose that the distribution of this rental cost is normally distributed with a population standard deviation of \$24.80. Answer the following questions.

a. What is the probability that a randomly selected rental car costs more than \$260 per day?

b. What is the probability that a randomly selected rental car costs between \$270 and \$285 per day?

c. What is the cut-off cost for the rental car if only 8% of middle-income Malaysians (M40) afford to pay?

5. The researcher would like to test the hypothesis that the average monthly wage for recent college graduates is less than \$2000. A random sample of 17 recent college graduates averaged \$2100 per month with a standard deviation of \$350.50 per month. Test the researcher’s claim using a = 0.05 that the average monthly wage of college graduates is more than \$2000. Answer the following questions.

a. Identify the claim and state the Ho and

b. Find the critical value.

c. Calculate the test statistic.

d. Make a decision to reject or fail to reject the Ho.

e. Interpret the decision in the context of the original claim.

6. Researchers suspect that 18% of all high school students smoke at least one pack of cigarettes a day. At Mat Kilau Highschool, a randomly selected sample of 150 students found that 30 students smoked at least one pack of cigarettes a day. Use a=0.05 to determine that the proportion of high school students who smoke at least one pack of cigarettes a day is more than 18%. Answer the following questions.

a. Identify the claim and state the Ho and H1.

b. Find the critical value.

c. Calculate the test statistic.

d. Make a decision to reject or fail to reject the Ho.

e. Interpret the decision in the context of the original claim.

7. At a local college, 55 female students were randomly selected and it was found that their mean monthly income was \$638 with a population standard deviation of \$125.50. Eighty-five male students were also randomly selected, and their mean monthly income was found to be \$758 with a population standard deviation of \$165.70. Use a = 0.02 to test the claim that male students have a different monthly income than female students. Answer the following questions.

a. Identify the claim and state the Ho and Fli.

b. Find the critical value.

c. Calculate the test statistic.

d. Make a decision to reject or fail to reject the Ho.

e. Interpret the decision in the context of the original claim.

8. In a study of the effectiveness of diet on weight loss, 20 people were randomly selected to participate in a diet program for 30 days. Test the claim that diet had an impact on weight loss. Use a = 0.02. Assume that the distribution is normally distributed. Answer the following questions.

9. A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers candy bars at different prices. Using candy bar sales as the dependent variable, the company conducted a simple linear regression. Answer the questions based on the statistical output. Answer the questions based on the statistical output.

1. What is the value of the coefficient of correlation? Explain this value in the problem.
2. Use a 5% significance level to test that there is a significant relationship between PRICE and SALES.
3. Write the regression equation for this problem from the output.
4. Predict the SALES if the PRICE is RM2.35. relation to the population