Reference no: EM13914012

Problem 1 (Comparing random samples and populations). Open the Excel file EAI.xlsx. The data show the annual salary for all 2, 500 managers in one company.

a. What is the population mean annual salary?

b. What is the population standard deviation for annual salary?

Now, we want to construct 10 random samples each of size 25. One way to do this is as follows:

(i) Assign a random number to each salary, so in the column adjacent to the salary column, use the RAND function generate a list of random numbers uniformly distributed between 0 and 1.

(ii) Sort salaries by their corresponding random number. This can be accomplished by using the sort feature found in the Data tab. Sort by either ascending or descending.

(iii) Take the first 25 sorted salaries as our first random sample. Copy and paste the values of these 25 salaries into a new column.

(iv) Press F9. This will reassign a new random number to each salary.

(v) Repeat steps (ii), (iii), and (iv) until you have 10 random samples of size 25.

For each of the 10 random samples,

c. Find a point estimate of the population mean annual salary. (Consider using the fill-handle here.)

d. Find a point estimate of the population standard deviation. (Consider using the fillhandle here.)

e. How do the 10 point estimates of the population mean compare to the actual population mean?

f. How do the 10 point estimates of the population standard deviation compare to the actual population standard deviation.

Problem 2. Open the Excel file GolfIncome.xlsx. The data represent income (in thousands of dollars) earned by a population of 40 professional golfers from their endorsement deals.

a. What is the probability that a golfer earned between 4, 000 and 6, 000 thousand dollars? Hint: One way to find the number of incomes between 4, 000 and 6, 000 thousand dollars is to use the COUNTIFS function.

b. How much did a golfer have to earn to be in the top 25% of the income bracket? Hint: Sort ascending the dataset, then find the (100 - 25) = 75th percentile (Recall the percentile formula back in lecture 2).

Now, assume that the data follow a normal distribution. Using the NORM.DIST and NORM.INV functions, determine the following:

c. What is the probability that a golfer earned between 4, 000 and 6, 000 thousand dollars?

d. How much did a golfer have to earn to be in the top 25% of the income bracket?

Attachment:- Assignment.rar