Explore BrainMass

### Explore BrainMass

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

See attached.

Review Questions (9, 10 and 15)

#'s 9 & 10 refer to the following situation. Fifteen (15) companies all bid on oil leases. The following data is a small part of the records on past bids. All monetary amounts are in millions of dollars.

Leases Signals
Proven Value Company 1 Company 2
\$105.5 \$99.5 \$107.4
\$107.5 \$97.1 \$101.5
\$98.7 \$101.5 \$103.7

9. Compute the mean error in the signals.

10. Let R be the continuous random variable giving the error in a geologist's estimate for the value of a lease. Experience allows us to assume that R is normal, with (see attached file) R = 0 and (see attached file) R = 10 million dollars. Suppose that the 15 companies form 3 bidding rings of equal sizes. Let M be the random variable giving the mean of the errors for a set of signals for the companies in one of the bidding rings. Compute the standard deviation, (see attached file) M, for M? Round your answer to 3 decimal places.

Question 15 refers to the following situation. A normal random variable X gives the number of ounces of soda in a randomly selected can from a given canning plant. It is known that the mean of X is close to 8 ounces and that X = 0.2 ounces. Let be the mean of a random sample of size n = 4 soda cans.

15. Compute . Sketch a graph of the probability density function for . Use standard deviations to explain why the mean of a sample of size n = 16 cans would be likely to give a better estimate for &#61549;X than would the mean of a sample of size n = 4 cans.

#### Solution Preview

Review Questions (9, 10 and 15)

#'s 9 & 10 refer to the following situation. Fifteen (15) companies all bid on oil leases. The following data is a small part of the records on past bids. All monetary amounts are in millions of dollars.

Leases Signals
Proven Value Company 1 Company 2
\$105.5 \$99.5 \$107.4
\$107.5 \$97.1 \$101.5
\$98.7 \$101.5 \$103.7

9. Compute the mean error in the signals.

Leases Signals Errors
Proven Value Company 1 Company 2 Error for Company 1 Error for Company ...

#### Solution Summary

These are a series of questions for review regarding business statistics.

\$2.19