In: Statistics and Probability
a) The probability that a medical drug will cure a disease is 0.95 if the patient has the disease. The probability reduces to 0.10 if the patient doses not have the disease. If 70% of people in a selected community have the disease, find the probability that a person who has been cured actually had the disease. [6 marks]
b) A property sales agent estimates the probability of striking a deal will a client as follows:
| 
 Sale values (K’000)  | 
 4  | 
 4.5  | 
 5  | 
 5.5  | 
 6  | 
| 
 Probability  | 
 0.14  | 
 0.26  | 
 0.30  | 
 0.20  | 
 0.10  | 
I) Find the expected sales value. [4 marks]
ii) Find the standard deviation of the sales
c) The following table shows, for a group of 12 production workers, the number of months of working experience on a particular process each of them had, and the number of defective items that they produced during a given week.
| 
 Worker  | 
 A  | 
 B  | 
 C  | 
 D  | 
 E  | 
 F  | 
 G  | 
 H  | 
 I  | 
 J  | 
 K  | 
 L  | 
| 
 Experience(Months)  | 
 9  | 
 11  | 
 8  | 
 16  | 
 10  | 
 14  | 
 12  | 
 6  | 
 4  | 
 13  | 
 3  | 
 11  | 
| 
 Number of rejects produced  | 
 24  | 
 18  | 
 26  | 
 14  | 
 21  | 
 16  | 
 22  | 
 24  | 
 36  | 
 20  | 
 30  | 
 23  | 
You are required to:
I) calculate the coefficient of linear correlation for the data, and comment on the result. [8 marks]
ii) Determine the coefficient of determination for the data, and explain its implication.
[4 marks]
iii) Determine the equation of the least squares regression line, and comments on the values of the coefficient and the constant.