BMA 140 WINTER 2011 PRACTICE (Midterm) 1. Monthly rent data in dollars for a sample of 10 one-bedroom apartments in a small town in Iowa are given below: 220 216 220 205 210 240 195 235 204 250 a. Compute the sample monthly average rent b. Compute the sample median c. What is the mode? d. Describe briefly what each statistic in parts a. to c. tells you about the data. 2. Suppose that a firm’s sales were \$2,500,000 four years ago, and sales have grown annually by 25%, 15%, -5%, and 10% since that time. What was the geometric mean growth rate in sales over the past four years? . Suppose that a firm’s sales were \$3,750,000 five years ago and are \$5,250,000 today. What was the geometric mean growth rate in sales over the past five years? 4. A basketball player has the following points for seven games: 20, 25, 32, 18, 19, 22, and 30. Compute the following measures of central location and variability: a. mean b. median c. standard deviation d. coefficient of variation 5. The annual percentage rates of return over the past 10 years for two mutual funds are as follows: Fund A: 7. 1 -7. 4 19. 7 -3. 9 32. 4 41. 7 23. 2 4. 0 1. 29. 3 Fund B: 10. 8 -4. 1 5. 1 10. 9 26. 5 24. 0 16. 9 9. 4 -2. 6 10. 1 Which fund would you classify as having the higher level of risk? 6. A supermarket has determined that daily demand for egg cartons has an approximate mound-shaped distribution, with a mean of 55 cartons and a standard deviation of six cartons. a. For what percentage of days can we expect the number of cartons of eggs sold to be between 49 and 61? b. For what percentage of days can we expect the number of cartons of eggs sold to be more than 2 standard deviations from the mean? c.