Business Analytics
Business Analytics
3rd Edition
ISBN: 9780135231715
Author: Evans
Publisher: PEARSON
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Chapter 2, Problem 16PE

Apply the Advanced Filter to the Credit Risk Data (Base Data worksheet) to find the following:

  1. All new car loans obtained for single females.
  2. All furniture loans obtained for single individuals who rent.
  3. All education loans obtained by unskilled workers.
  4. All used car loans obtained by individuals who are employed 12 months or less.
  5. All car loans (new or used) obtained by males who have been employed at least 36 months .

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A well-known company predominantly makes flat pack furniture for students. Variability with the automated machinery means the wood components are cut with a standard deviation in length of 0.45 mm. After they are cut the components are measured. If their length is more than 1.2 mm from the required length, the components are rejected. a) Calculate the percentage of components that get rejected. b) In a manufacturing run of 1000 units, how many are expected to be rejected? c) The company wishes to install more accurate equipment in order to reduce the rejection rate by one-half, using the same ±1.2mm rejection criterion. Calculate the maximum acceptable standard deviation of the new process.
5. Let X and Y be independent random variables and let the superscripts denote symmetrization (recall Sect. 3.6). Show that (X + Y) X+ys.
8. Suppose that the moments of the random variable X are constant, that is, suppose that EX" =c for all n ≥ 1, for some constant c. Find the distribution of X.
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