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Series 4 Examination 2011

BUSINESS STATISTICS
Level 2
Friday 11 November
Subject Code: 2009

Time allowed: 2 hours 30 minutes

Answer any 4 questions.

All questions carry equal marks.

Graph paper is provided in the answer book.

Write your answers in blue or black ink/ballpoint. You can only use pencil for graphs, charts,
diagrams, etc.

Begin your answer to each question on a new page.

All answers must be correctly numbered but need not be in numerical order.

Workings must be shown.

You may use a calculator provided the calculator gives no printout, has no word display facilities,
is silent and cordless. The provision of batteries and their condition is your responsibility.

Marks may be lost through lack of neatness and poor presentation.

2009/4/11

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ASE2009 4 11 1

QUESTION 1
A car manufacturer, Manufacturer S, wishes to compare the age profile of the buyers of its medium size
saloon with that of the buyers of all medium size saloons.
The table shows the age profile for Manufacturer S, of the buyers of its medium size saloon car.
Manufacturer S
Medium size
saloon car buyers

Age Group

%
6
9
23
34
15
13

17 and less than 25


25 and less than 35
35 and less than 45
45 and less than 55
55 and less than 65
65 and less than 75
(a)

Draw a cumulative frequency curve (ogive) to illustrate the data above.

(b)

From the graph estimate for Manufacturer S

(6 marks)

(i)
(ii)

the median age of buyers


the quartile deviation.
(5 marks)

(c)

Estimate the arithmetic mean age of buyers for Manufacturer S.

(d)

Estimate the standard deviation age of buyers for Manufacturer S.

(5 marks)
(4 marks)
For all buyers of medium size saloon cars the estimated mean age is 44.5 years with a standard
deviation of 12.9 years.
(e)

Calculate the coefficient of variation for the age of buyers for


(i)
(ii)

those medium size saloon cars made by Manufacturer S


all medium size saloon cars.

Comment on your results.


(5 marks)
(Total 25 marks)

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QUESTION 2
An importer of consumer goods from China needs staff to work overtime when a new shipment arrives.
Its records show the following relationship between overtime hours worked and the wage bill.
Overtime
hours
320
470
140
390
280
410
520
(a)

Wage bill
00
136
142
126
138
134
142
146

Plot the data on a scatter diagram.

(3 marks)
Calculate the equation of the least squares regression line in the form y = a + bx for Wage
bill on Overtime hours worked.
(11 marks)
(c)
Explain in context what a and b represent in the regression equation found in part (b).
(4 marks)
(d)
Estimate the wage bill when 390 overtime hours are worked.
(3 marks)
The coefficient of correlation for the data in this question is 0.987
(b)

(e)

Explain what the correlation coefficient measures.

(f)

What is your interpretation of the correlation coefficient given above?

(2 marks)
(2 marks)
(Total 25 marks)

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QUESTION 3
A production line for a food processing company has a number of identical machines. A record of the
maintenance costs of a random sample of 9 machines in the years 2009 and 2010 are shown in the table
below.

Machine
Maintenance
Cost 00 2009
Maintenance
Cost 00 2010

25

36

22

29

34

65

48

12

19

28

34

27

33

37

60

42

18

22

(a)

Calculate the change in maintenance costs (00) for each machine in 2010 compared with 2009
and calculate the arithmetic mean of the change in the maintenance costs (00).
(5 marks)

(b)

Calculate the standard deviation of the increase in the maintenance costs between 2009
and 2010.

(c)

Give one reason why the maintenance costs of the machines may differ.

(4 marks)
(2 marks)
(d)

If you wished to reduce the maintenance costs, which 3 machines would you replace first?
Explain your choice.
(2 marks)

It was discovered that a clerical error resulted in the maintenance costs for machines C and G being over
recorded by 500 for each machine in 2009
(e)

Calculate the effect this will have on the mean change in maintenance costs between 2009
and 2010.
(3 marks)

The following table shows the annual costs of materials and labour for the company from 2007 to 2010

Materials cost 000


Year end Dec. 2007
Year end Dec. 2008
Year end Dec. 2009
Year end Dec. 2010

(f)

450
570
390
420

Labour cost 000


170
190
220
245

Represent these data in the form of a multiple bar chart.


Give 2 comments on the differences in the costs shown in the chart.
(9 marks)
(Total 25 marks)

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QUESTION 4
The quarterly sales for 3 years of a small building business were recorded as shown below.
Year
2008
2009
2010
(a)

Quarter 1
136
141
148

(000)
Quarter 2
Quarter 3
204
310
225
340
238
356

Quarter 4
164
170
178

Plot the quarterly sales on a graph


(3 marks)

(b)

Using the method of moving averages find the centred trend values
(6 marks)

(c)

Using the additive model find the average seasonal variations.


(4 marks)

(d)

Use the results for quarter 2 to explain what the average seasonal variation shows.
(2 marks)

An analysis of a competing building firms work shows the number of jobs completed in various
categories as follows:

Type of Job
Private housing
Public housing
Commercial buildings
(e)

Value of Job
Less than
More than
10000
10000
30
40

50
10

20

50

The builder wishes to sample his customers to discover how satisfied they are with the work he
has completed.
(i)

Explain what is meant by the term Sampling Fraction.


If a sample fraction of 20% is used, how large would the sample be in this case?
(4 marks)

(ii)

If a stratified sampling method is used with a sample fraction of 20%, how many jobs would
be selected from the category, Public housing and More than 10,000?
(2 marks)

(iii)

Give one advantage and one disadvantage of stratified random sampling compared with
other sampling methods.
(4 marks)
(Total 25 marks)

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QUESTION 5
The table shows the amount of sick leave recorded (in days) for a sample of 500 employees selected
from three sectors of the UK economy in 2010.
Sector of the Economy
Public Sector
Sick Leave Taken

Domestic Owned
Private

Foreign Owned
Private

Less than 5 days sick


leave
5 days and less than 10
days sick leave

35

45

20

95

102

35

10 or more days sick


leave

70

53

45

(a)

What is the probability that an employee chosen at random from the sample
(i)

works in the Public Sector

(ii)

takes 5 days and less than 10 days sick leave

(iii)

takes less than 5 days sick leave and is from the Foreign Owned Private sector?
(9 marks)

(b)

(c)

(d)

If a person has taken 10 days or more sick leave, what is the probability that they were employed
in the Domestic Owned Private sector?
(4 marks)
Draw a percentage component bar chart showing the amount of sick leave taken by the sample of
employees in the Domestic Owned Private and the Foreign Owned Private sectors of the
economy.
(8 marks)
Comment on two significant features of the chart
(4 marks)
(Total 25 marks)

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QUESTION 6
(a)

What is meant by Primary Data?


Give one example of how primary data can be collected. State one advantage and one
disadvantage of collecting
primary data.
(5 marks)

(b)

What is meant by Secondary Data?


Give one example of how secondary data can be collected. State one advantage and one
disadvantage of collecting secondary data.
(5 marks)

(c)

Suggest four factors which need to be taken into consideration when constructing a general index
of consumer prices.
(8 marks)

The following table shows the annual gross national income for the UK for the years 2003 to 2009.

(d)

Year

Gross National Income at Market Prices


(Billion)

2003
2004
2005
2006
2007
2008
2009

1155
1220
1275
1336
1423
1472
1423

Construct an index of Gross National Income at Market Prices with 2005 as


the base year (2005 = 100).
(5 marks)

(e)

Calculate the percentage increase in Gross National Income at Market Prices from 2006 to 2009.
(2 marks)
(Total 25 marks)

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LEVEL 2

2009/4/11

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