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UNIVERSITY OF TECHNOLOGY, JAMAICA

FACULTY OF SCIENCE AND SPORT

SCHOOL OF MATHEMATICS AND STATISTICS

EXAMINATION, SUMMER SEMESTER

Module Name: Business Statistics

Module Code: STA 2004

Date: August , 2011

Theory/Practical: Theory

Group: BBA2, EBBA2, PBBA2 & COMMUNITY COLLEGES

Duration: 2 Hours

INSTRUCTIONS:

1. Answer ANY FOUR(4) questions.

2. This examination paper consists of SIX (6) questions and THIRTEEN (13) printed
pages.

3. Please begin the answer for each question on a new page.

4. A list of formulae and tables are provided.

5. Mathematical instruments and silent electronic calculators may be used for this
paper.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

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Question 1 – MEAN, MODE, MEDIAN

(a) The table given below shows a grouped frequency distribution of the recorded heights,
measured to the nearest centimeter, of 50 girls.

Table 1.

Height (cm)

102 -105

106 -109

110 -113

114 - 117

118 - 121

No. of girls

13

16

10

8

3

(i) Calculate the mean and median heights of the girls. (2 + 3 marks)

(ii) Calculate the standard deviation of the heights of the girls. (5 marks)

(iii) Is the distribution positively or negatively skewed? (2 marks)

Probability
(b) A survey was conducted at Clare Amusement Park. The following probabilities
are given:

P(

) = 3/8, P(B) = 3/4, and P = 2/3

Find the P(A/B).
(3 marks)

Question 2

(a) The average length of stay at Trelawny Hospital for a sample of 36 male lung
patients was 5.5 days with a standard deviation of 1.2 days. For a sample of 36
females, the average length of stay was 5.9 days with a standard deviation of 2.2
days. At the 0.01 significance level, is there a difference in the average length of
stay between the male and female patients at Trelawny Hospital?
(7 marks)

Probability

(b) Thirty percent of all customers who enter Bongo’s Store will make a purchase.
Suppose that ten customers enter the store and that these customers make
independent purchase decisions. Find the probability that at most four customers
will make a purchase.
(3 marks)

Normal Distribution
( c) The ABC chain of restaurants claims that the waiting time of customers for service
is normally distributed, with a mean of 3 minutes and a standard deviation of 2 minutes. The
quality-assurance department found in a sample of 50 customers at the Barracks Road ABC
restaurant that the mean waiting was 2.75 minutes. At the 0.05 significance level, can we
conclude that the mean waiting time is less than 3 minutes?
(5 marks)

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Question 3
Sampling and Theory Estimation
(a) The attendance at the All Jam Swimming Meet was 400. A random sample of 50
persons of those in attendance revealed that the mean number of soft drinks
consumed per person was 1.86 with a standard deviation of 0.50. Construct
a 96 percent confidence interval for the mean number of soft drinks consumed per
person.
(6 marks)

Normally Distribution
(b) Weekly demand at a grocery store for a brand on canned sausages is normally
distributed with a mean of 800 cans of sausages and a standard deviation of
75 cans.

(i) What is the probability that the weekly demand is 959 cans or less?

(ii) What is the probability that the weekly demand is between 660 and
and 735 cans of sausages?
(2 + 4 marks)

Probability and Probability Distribution – Poisson Distribuion
(c) XYZ Insurance Company receives on average 2.5 claims per week. Assuming
that the number of claims follows a Poisson distribution, find the probability that it will
receive more than 3 claims in a given fortnight.
(3 marks)

Question 4
Probability and Probability Distribution - Probability
(a) Two events A and B are such that P(A) = 0.6, P(B) = 0.4 and P(A/B) = 0.3

Find the probability that neither A nor B occurs.
(6 marks)

Hypothesis testing
(b) An educator claims that the average salary of substitute teachers in a particular
school district in Mocho is less than \$60 per day. A random sample of eight
school districts is selected and the average salary is \$58.88 with a standard deviation (One Tailed, left)
of 5.08. Is there enough evidence to support the educator’s claim at a 0.01 level of
significance?
(5 marks)

( c) A researcher wishes to estimate, with 98% confidence, the proportion of people in
Greater Portmore who own a home computer. A previous study showed that 65% of
those interviewed had a computer at home. The researcher wishes to be accurate
within 2% of the true proportion.

Find the sample size required to do the study.
(4 marks)

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Question 5
Regression and Correlation
An educator wants to see how the number of absences for a student in his class affects the
student’s final grade. The data obtained from a sample are shown.

No. of absences (x)

10

12

2

0

8

5

70

65

96

94

75

82

(a) Find the equation of the least squares regression line (7 marks)

(b) Predict the final grade when the number of absences is 7. (1 mark)

(c ) Compute the Product Moment Correlation Coefficient (r). (4 marks)

(d) Compute the Coefficient of Determination and interpret your answer.
( 1 + 2 marks)

Question 6

Hypothesis Testing
(a) You are planning a survey of monthly starting salaries for recent business
major graduates from Ztech. From a pilot study you estimate that the standard deviation is about (Two Tailed)
\$50,000. What sample size do you need to have a margin of error equal to \$15,000 with 96% confidence?
(3 marks)

(b) A market researcher wants to know whether background music can influence the number
of bottles of French, Italian, and other wine purchased by various customers at a particular
place. A sample of 243 people is selected as shown.

Wine
Music
Total None Reggae Jazz
French 30 39 30 99
Italian 11 1 19 31
Other 43 35 35 113
Total 84 75 84 243

At the 0.02 level of significance, can the market researcher conclude that a
person purchasing wine can be influenced by the background music?
(12 marks)

***END OF PAPER***

USEFUL FORMULAE
5

1.
¿
¿
=
f
f x
x

2. Sample standard deviation for grouped frequency distribution

2
( )
1
f x x
s
n
÷
=
÷
¿
OR
( )
2
2
1
fX
fX
n
s
n
÷
=
÷
¿
¿

3. Median for grouped frequency distribution

. .
. .
2
w c
f
f c
N
L
median
×
(
(
(
(
¸
(

¸

÷
+

4. Coefficient of skewness, S
k
=

5. Coefficient of Variation (C. O. V) = 100 ×
x
s

6.
( ) ( )
2 2
2 2
n XY X Y
r
n X X n Y Y
÷
=
( (
÷ ÷
( (
¸ ¸ ¸ ¸
¿ ¿ ¿
¿ ¿ ¿ ¿

7. Least squares regression line, Y a bX = + ,

( )( )
( )
2
2
n XY X Y
b
n X X
÷
=
÷
¿ ¿ ¿
¿ ¿

Y X
a b
n n
| |
= ÷
|
|
\ .
¿ ¿

8. ( ) ( )
allx
E X xP X x = =
¿

9.
| |
2
2
( ) ( ) ( ) Var X E X E X = ÷

10. Standard Normal value:
x
Z
µ
o
÷
=

11. Confidence interval for mean:
n
s
z X ±
12. Confidence interval for proportion:
n
p p
z p
) 1 ( ÷
±

13. Finite Population Correction with the mean:
1
s N n
X Z
N n
| |
÷
±
|
|
÷
\ .

14. Finite Population Correction with the proportion:
(1 )
1
p p N n
p z
n N
| |
÷ ÷
±
|
|
÷
\ .

15. Sample size for mean:
2
|
.
|

\
|
=
E
zs
n
6

16. Sample size for proportion:
2
) 1 ( |
.
|

\
|
÷ =
E
z
p p n

17. Single sample mean:
n
s
X
z
µ ÷
=

18. Two sample test of means:
2
2
2
1
2
1
2 1
n
s
n
s
X X
z
+
÷
=

19. Single sample Proportion:
(1 )
p
z
n
t
t t
÷
=
÷

20. One sample test of a mean:
X
t
s
n
µ ÷
=

21. Chi-square test statistic:
2
2
(0 ) E
x
E
( ÷
=
(
¸ ¸
¿

22. Expected frequency = (Row total) ( Column total)
Grand total

Probability

23. ) ( ) ( ) ( B P A P B A P + =

24. ) ( 1 ) ( A P A P ÷ = '

25. ) ( ) ( ) ( ) ( B A P B P A P B A P · ÷ + =

26.
) (
) (
) / (
A P
B A P
A B P
·
=

27.
) (
) (
) / (
B P
B A P
B A P
·
=

28. ) / ( ) ( ) / ( ) ( ) ( B A P B P A B P A P B A P = = ·

29. ) ( ) ( ) ( B P A P B A P = ·

7

UNIVERSITY OF TECHNOLOGY, JAMAICA

FACULTY OF SCIENCE AND SPORT

SCHOOL OF MATHEMATICS AND STATISTICS

FINAL/REDO EXAMINATION, SEMESTER 1

Module Name : Business Statistics

Module Code : STA 2004

Date : December , 2010

Theory/Practical : Theory

Group : BBA2, EBBA2, PBBA2 & COMMUNITY COLLEGES

Duration : 2 Hours

INSTRUCTIONS:

6. Answer ANY FOUR(4) questions.

7. This examination paper consists of SIX (6) questions and four (4) printed pages.

8. Please begin the answer for each question on a new page.

9. A list of formulae and tables are provided.

10. Mathematical instruments and silent electronic calculators may be used for this
paper.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

8

Question 1
MEAN, MODE, MEDIAN

(a) The following data gives the frequency distribution of the wages of a sample of

100 factory workers:

Table 1.

Wages
(\$ thousands)

13 – 17

18 – 22

23-27

28 – 32

33 - 37

No. of workers

6

21

35

16

22

(iv) Calculate the mean and median wages (2 + 3 marks)

(v) Calculate the standard deviation of the wages (5 marks)

(vi) Is the distribution positively or negatively skewed? (2 marks)

Hypothesis testing- Confidence Interval
(b) A market survey was conducted by Young’s’ Business Consultancy Ltd. The
researchers wanted to estimate the proportion of consumers who could recognize
the brand name of a product based on the smell and taste of the product. Of the 1,000 (Two Tailed)
consumers, 300 were able to identify the brand name. Using the 90 percent level of
confidence, determine the interval for the sample proportion.

(3 marks)

Question 2

(a) The average number of guests of a typical wedding is 125 guests. A random sample
of 35 weddings during the past year in a particular town had an average number of 110
guests and a standard deviation of 30. Is there sufficient evidence at the 0.01
level of significance that the average number of guests differs from the population of 125
guests?
(7 marks)
Normal Distribution
(b) The fuel consumption, miles per gallon, of all cars of a particular model has mean 25 and
standard deviation 2. The population distribution can be assumed to be normal. A random
sample of 9 cars is taken. Find the probability that the sample mean fuel consumption will lies
between 23 miles and 27 miles per gallon?

(5 marks)

Prbability
(c) A survey was conducted in Ackee Tree Town. The findings were as follows:

14% are unemployed
29% are high school dropouts
5% are unemployed and high school dropouts

What is the probability that a resident of the town is unemployed, given that the person is a
high school dropout?

(3 marks)
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Question 3

(a) A recent study revealed that 60 percent of homes in Greater Portmore have computer.
In a sample of 20 homes. What is the probability that at least four (4) homes have computer?
(3 marks)

(b) A research firm conducted a survey of a population of 300 people to determine
the average amount of money spent on phone cards by cell phone users.
A sample of 65 cell phone users indicated that the mean amount spent is \$250, with a
standard deviation is \$50.

(1) Using the 96 percent level of confidence , determine the confidence
interval for the mean .

(ii) Explain what (i) indicates.
(6+2 marks)

(c) The estimate of the population proportion is to be within 0.06, with a 95 percent level
of confidence. The population proportion is 0.55. How large a sample is required ?

(4 marks)

Question 4

(a) The probability that a student passes mathematics is
3
2
, and the probability that he
passes English is
9
4
. If the probability of passing at least one course if
5
4
, what is
the probability that he will pass both courses?

(4 marks)

(b) A study is made comparing the cost to rent a one-bedroom apartment for a day in
Monex with the corresponding cost of similar apartments in Hopex. A
sample of 44 apartments in Monex showed the mean daily rent to be U\$370, with a
standard deviation of U\$34. A sample of 43 apartments in Hopex showed the
mean daily rent to be U\$360, with a standard deviation of U\$36. At the 5%
significance level, is there a difference in the mean daily rental rate between Monex
and Hopex?
(7 marks)

(c) A market research team is conducting a survey on a new fruit juice. The team wants
to estimate the population mean within 3, with a 96 percent level of confidence. The
population standard deviation is estimated to be 20. How large a sample is required?

(4 marks)

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QUESTION 5
Regression and Correlation
An emergency service wishes to see whether a relationship exists between the outside temperature
and the number of emergency calls it receives for a 7-hour period. The data are shown below in
table 2.

Table 2.

Temperature
(x)

68

74 82

88

93

99

101

No. of calls
(y)

7

4

8

10

11

9

13

(a) Find the equation of the least squares regression line . (7 marks)

(b) Predict the number of calls when the temperature is 80. (1mark)
(c) Compute the Product Moment Correlation Coefficient (r) (4 marks)

(d) Computer the Coefficient of Determination and interpret your answers.
(3 marks)

Question 6

Hypothesis Testing
(a ) The sales manager of a cable company claims that each of his sales representatives
visits 40 households per week. Several representatives claim that this estimate is too
low. To research the claim, a random sample of 28 sales representatives revealed that
the mean number of visits made last week was 42 with a standard deviation 2.1. At
the 0.05 level of significance, can we conclude that more than 40 visits are made, on
the average, per week?
(5 marks)

( b) Three hundred and fifty-five (355) employees of Tony’s Corporation were sampled
at random from pay records. The employees were asked to complete an anonymous
job satisfaction questionnaire. Table 3 illustrates the result. Using a 0.05 level of
significance, can the accountant conclude that the job satisfaction is independent of
pay category?

Table 3.

(10 marks)

***END OF PAPER***

Pay Category Job Satisfaction Total
Satisfied Neutral Dissatisfied
Salaried 20 13 2 35
Hourly 135 127 58 320
Total 155 140 60 355
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UNIVERSITY OF TECHNOLOGY, JAMAICA

FACULTY OF SCIENCE AND SPORT

SCHOOL OF MATHEMATICS AND STATISTICS

FINAL/REDO EXAMINATION, SEMESTER 2

Module Name: Business Statistics

Module Code: STA 2004

Date: April/May , 2011

Theory/Practical: Theory

Group: BBA2, EBBA2, PBBA2 & COMMUNITY COLLEGES

Duration: 2 Hours

INSTRUCTIONS:

11. Answer ANY FOUR(4) questions.

12. This examination paper consists of SIX (6) questions and THIRTEEN (13) printed
pages.

13. Please begin the answer for each question on a new page.

14. A list of formulae and tables are provided.

15. Mathematical instruments and silent electronic calculators may be used for this
paper.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

Question 1

(c) The ages of a sample of 40 quarter-inch drills available for rental at Tool Rental, Inc. were
organized into the following frequency distribution.

Table 1.

Ages
( months)

2 - 4

5 – 7

8 - 10

11 – 13

14 - 16
12

No. of drills

14

12

10

3

1

(vii) Calculate the mean and median ages of the drills (2 + 3 marks)

(viii) Calculate the standard deviation of the ages of the drills (5 marks)

(ix) Is the distribution positively or negatively skewed? (2 marks)

(d) A survey was conducted at Pear Tree Oval. The following probabilities
are given:

P(A´) = 3/4, P(B) = 5/8, and P = 2/3

Find the P(A/B).
(3 marks)

Question 2

(b) A study was conducted comparing the cost to rent an office in Madville with the
corresponding cost of similar office in Blank Rios. A sample of 40 offices in Madville
showed the mean rental rate to be \$24,060, with a standard deviation of \$35. A sample of 45
offices in Blank Rios showed the mean rent to be \$24,070, with
a standard deviation of \$37. At the 0.06 significance level, is there a difference in
the mean rental rate between Madville and Blank Rios?
(7 marks)

(c) Suppose that the warranty records show that the probability that a new record
player needs a warranty repair in the first three months is 0.30. If a sample of
11 new record players is selected, find the probability that fewer than five will
12 need a warranty repair ?

(3 marks)

( c) A recent national survey found that high school students watched an average
(mean) of 7.0 videos per month. A random sample of 36 high school students
revealed that the mean number of videos watched last month was 6.7, with a
standard deviation of 0.4 . At the 0.03 significance level, can we conclude
that on average high school students watch less than 7.0 videos a month ?
(5 marks)

Question 3

(a) There are 266 tellers employed at the banks . A sample of 42 tellers revealed that 14
graduated from MITTIS . Construct the 95 percent confidence interval for the proportion
of all tellers who graduated from MITTIS.
(6 marks)

(b) The prices of computers sold by a H & M Computer Ltd are normally
distributed with a mean of \$50,000 and a standard deviation of \$250.
13

(i) What is the probability that a computer sold has a price between \$50,250 and
\$50,500?

(ii) What is the probability that a computer sold has a price less than \$49,750?

(3 + 3 marks)

(c) XYZ Insurance Company receives on average 3 claims per week. Assume that the
number of claims follows a Poisson distribution, find the probability that it will
receive less than 3 claims in a given fortnight.

(3 marks)

Question 4

(a) Two events A and B are such that P(A) = 0.8, P(B) = 0.3 and P(A/B) = 0.4

Find the probability that neither A nor B occurs.
(6 marks)

(b) The lives of batteries used in digital clocks are normally distributed. From past records it is
known that the mean life of these batteries is 305 days. The battery was
recently modified and a sample of 24 modified batteries were tested. It was discovered that
the mean life was 311 days, and the sample standard deviation was 11 days. At the 0.05 level
of significance, can we claim that the modification changed the mean life of the battery?
(5 marks)

(c) The estimate of the population proportion is to be within 0.03, with
a 98 percent level of confidence. The best estimate of the population proportion
is 0.65. How large a sample is required?

(4 marks)

Question 5

A store manager wishes to find out whether there is a relationship between the age of her
employees and the number of sick days they take each year. The data for the sample are shown
below.

Age (x)

18

26

39

48

53

58

Days (y)

16

12

9

5

6

2

(a) Find the equation of the least squares regression line (7 marks)

(b) Predict the number of sick days for an employee who is 25 years old.
(1 marks)

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(c) Compute the Product Moment Correlation Coefficient (r). (4 marks)

(d) Compute the Coefficient of Determination and interpret your answer.
(3 marks)

Question 6

(a) The second year marketing students of XZY University carried out a market
research on a new brand of toothpaste. They estimate that the population should
have a standard deviation of 8 and a margin of error of 1.5 with a 99 percent level of
confidence.

Calculate the required sample size, using the stated parameters.
(3 marks)

(b) A sociologist wishes to see whether the number of years of college a person has
completed is related to her or his place of residence. A sample of 88 people is selected
and classified as shown.

Location No College Four Year
degree
degree
Total
Urban 15 12 8 35
Suburban 8 15 9 32
Rural 6 8 7 21
Total 29 35 24
88

At the 0.05 level of significance, can the sociologist conclude that a person’s location is
dependent on the number of years of college?
(12 marks)

***END OF PAPER***