NATIONAL INSTITUTE OF BUSINESS MANAGEMENT

Higher Diploma in Computer Based Information Systems 2016.1

Business Statistics for IT
20th January 2017, 09.00am – 12.00noon

Answer five questions only All questions carry equal marks.

o You are permitted to use all statistical tables given in the class.
o Calculators are permitted use, but you are not allowed to keep formulas in the memory
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Question 1
The following data relates to the age distribution of a certain community.

Age Number of people

0<=x<10 25
10<=x<20 27
30<=x<40 34
40<=x<50 26
50<=x<60 16
60<=x<70 10
70<=x<80 3

a. Find the mean, median and mode

b. If 1/4th of the oldest population is given a pension, what is the cut-off age for the eligibility to the
pension
c. Comment on the skewness of the dataset using a relevant measure
d. Find the standard deviation

Question 2
a. Roughly about 35000 students face the A/L exam in Mathematics stream. The following data is
available regarding the exam in a certain year. Mean = 47.4 and Standard Deviation = 12.6. answer
the following questions.
i. What is the number of students who obtained marks above 70
ii. What is the number of students who obtained marks below 30
iii. If only 3% of the students are given A passes, what is the cut-off mark for an A.

b. One of the students from your class forgot to study for an MCQ exam and decided to sit for it anyhow
and test his luck. The test consists of 10 questions and there are 4 choices out of which only one is
correct. Find the probability for following events.
i. Him getting at least 3 correct answers
ii. Him getting all 10 wrong

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Question 3
The following data are related to the number on landslides in a certain area of sri lanka and the amount of
rainfall in that area for a duration of 10 years.

Year Rainfall (in cm) Number of

Landslides
2005 234 56
2006 200 45
2007 167 22
2008 189 26
2009 245 50
2010 312 64
2011 233 48
2012 334 79
2013 356 82
2014 226 51

a. Calculate the coefficient of correlation

b. Comment on the value of the coefficient of correlation and whether it proves the popular idea of
“more rain more landslides”.
c. Calculate the regression equation
d. If the expected rainfall in 2017 is 250cm what is the expected umber of landslides?

Question 4
In a study the following data were obtained based on 4 variables.

Travelling
Age Weight Study time time
Age 1
Weight 0.701695 1
Study time -0.74018 -0.388082 1
Travelling
time 0.020531 0.322442 -0.960526316 1

a. What conclusions can you reach from this correlation analysis?

b. Are you surprised by the results, or are they consistent with your own observations and experiences?

Question 5
a. What is the difference between a sample and the populations?
b. A random sample of size 80 was selected from a population of 960 to estimate the monthly income of
the family and the following data were obtained.
Mean income = 25300
standard deviation = 4900

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 find the 95% confidence interval for the population regarding the monthly income.
c. Out of 456 NIBM students 145 are playing computer games. Find the 95% confidence limits to the true
value of the proportion of the students who play computer games at NIBM
d. In NIBM out of a sample of 200 students 111 eat string hoppers and the rest eat short eats in the
morning. Can we assume that both string hoppers and short eats are equally popular?

Question 6
The following data are obtained by a researcher regarding the GPA and study and travelling time of the
students from NIBM.

Standard
Coefficients Error t Stat P-value
Intercept 2.607356 0.378374 6.890955 0.000233
Study time(x1) 0.071941 0.026511 2.713601 0.030042
Travelling time(x2) 0.002472 0.036932 0.066922 0.948515

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 184.814 2 ? ? 0.000495983 3.354131
Within Groups 244.129 27 ?

Total 428.943 29

a. State the multiple regression equation

b. Find the values for the question marks in the ANOVA table
c. Interpret the results of the ANOVA table

Question 7
Write short essays on the following topics
a. Statistical process control and 6 sigma methods
b. Use of correlation technique in research
c. Use of regression for prediction
d. Hypothesis testing

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