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@®RMIT ‘UNIVERSITY RMIT BUSINESS SCHOOL OF ECONOMICS, FINANCE AND MARKETING END OF SEMESTER EXAMINATION ‘EGON 1036: BUSINESS STATISTICS. DATE: 2May2006 SEMESTER 12006 READING TIME: ‘seMINUTES WRETING TIME: SHOURS iustRUCTIONS: 4. The paper consis of2 soctons and each Seton contains 5 sts of questions. Each section's woth 50% of ho mar or i examinatlon Section A: This seton contains 5 ets of Mutiple Choice quesbne. ‘Theresa ttl of 25 Mutiple Cholee questions. ‘At Multiple Coice questions cay the same marks Secon &: The secon contain § ets of Practical questions Each at of Prac! questions is worth 10% 2 Marc your anowers tothe Mutiple Chole questions in dark panic oro onthe ‘Answer Shea and writ your answers to the practical questions in the ‘space provided in the exam paper. 3. Youmust ontor your name and you student number onthe Answer Sheet and ‘atthe bation of his sana. 4. The exam oot for 70% ofthe total marks svalaben tis bjt Use of a calettor hich dosent store ete perited. No ntructon| ‘manuals or ay thar books, nots or oer relvant mats are perite, 8. _Thotermulae and ProbabityTabes ave given in the 8 page formu sheet FAMILY NAME (OVEN NAME STUDENT NUMBER SECTION A: ECON 1035 25 MULTIPLE CHOICE QUESTIONS 25 0hdiple Choice Questions worth 2marke each (25x2 = 60 marks) ‘Select the ONE BEST answer. Multiple anewers othe same question wil be marked as incorrect. Cirle your multiple choles anowers on the answer sheet stached to thie pap Place the entire examination paper, together withthe answer sheet, in your ‘examination aneworserpt ite your name and student number on the answer sheet provided wth thi, ‘examination paper. 4. INTRODUCTION AND DESCRIPTIVE STATISTICS ‘QuEsTiON 4 Inti subject we cscs statistical tems that managers need tobe fair wth, Which of the folowing statistical definitions isnot coract {(@) random sample ono wher the value are chosen In auch a way tha ever valu inthe population has an equal chance of boing chosen. {sampling ecrore aro equal othe standard deviation ofthe posable vane ofthe saree ‘estat of popuiaton summary moasure such as the mean or ropotion (©) éeacigtve statistics i concerned withthe clacton, presortaton and caracterization ofa ‘set of data rd to dese the various fetus ofthat tf data, (@) regresion ana is ued to etinate the relatonstioe betwaen deren variables where ‘heeeralatonehipe are then used to make forecasts ofthe valu ofthe variable. (ey me sample rame thet of are we Use when wo eect sample, INFORMATION NEEDED TO ANSWER QUESTIONS 270 6 “The manager ofthe customer compile eon of large homeware marufactureris| Intestin the oa amount of ine at any employee apends aking to customers in ipa “hour ptiod. He decides to lok ata random sample of n= 72 diferent on hour periods ant ‘nol the time rounded othe nesraet minute which one ofthe laff members spends on he pone ding that hour Thasa voles are son totale onthe top of he net page. The ‘he som-andeat ply for thse value ie shown below tis tbl. “The sum of the values andthe sum ofthe squared valves is x + 09 ond Ext = sos ECOMO35 SEMESTER 1,2008 2 INFORMATION NEEDED TO ANSWER QUESTIONS 2 TO 6 (continued) ‘TABLE OF VALUES 13 16 16 17 7 18 19 19 1 1 au Bw BB Mm mm 24 25 25 25 25 5 25 OS 2 25 25 20 2% 2 2 mw mm 2 werere re eee) 22 2 2 28 Hw 8 AO ‘STEM AND LEAF DISPLAY. Branches Leaves tse 008 we oud dlde he value of th standart rar 6 by the te population corocin fect value. (Aste rato N= 0.0583 we need to mull he standard err of hepato vals of tha sample mean by he rite popaton correction fact. (c) The vate ofthe fiat population aectn factor e equa othe squareroct of 8488 {Nene othe above ECOMI0R5 SEMESTER 1,2006 8 4, STATISTICAL INFERENCE t INFORMATION NEEDED TO ANSWER QUESTIONS 16 TO 20, ‘Suppose the asset manager fra chain of converience sore is infra I ing ot \whethr the lering company tht leas ta ores Ie provding sec wich ‘900d oF bate han the carent ust standard As the value of be ning contacts ‘bat onthe average im needed ocean a store she decks to examine he average time that ths leaning contractor akes when leaning aco, From oar suis she nds that he posele vais ofthe tes needed to clean a store havea population mean valve of = hour. From eter larger sues the ase manager fds thatthe polation andar deviation so = 05. After exariring pay clsie the atsct manage a that tis cleaning cofactor takes Tengee than 2 hour fo clean each store. She approaches he leaning contactor and pins ‘ou that ther contract wi a be renewed. The dearing contractor argues at this valu of 2 hours le based on overseas deta where he soos are much sale. The lrger ‘Austral stores need more than 2 hous to lean, ‘Totep determine whether these clans ofthe clearing contractor ae o are not correct the aceet manager decios to elect random sarge of = 36 dlaning Jobs and perform ‘thom here n each case she notes how long itakes to complete them. Sho uses these value to caletsto the vate ofthe sample moan (X). This sample evidences used to eet ‘he fotoning hypotheeee Wosns2 (Replace the ening closing contactor Herne (oot replace the existing ceaning contact) uEsTiON 16 tbe asset manager uses a ove of significance of «= 0.05 than which ote fotowing statements not correct (2) The mean ofthe posible valu ofthe sample mean () I the poputn mean (©) The posible values ofthe sample mean (X) can onl be Normal tuted when the times for each cleaning job ar aso Normal strbutd (6) The varence ofthe pose values ofthe sample mean () le equalto be population variance 0.25 vided bythe size ofthe sample (@) The standard deviation ofthe posse vates ofthe sarpio mean (K), which we ako call the standard era, sequal to 0.0833 (= 05/8) (e)Nene ofthe above ECON1035 SEMESTER 12008 9 ‘question +7 ‘Suppose he asset manager fds om this sarge of .= 3 value thats eamplo mean {earing time for each store is X =21Shour I values are rounded a & decimal pias which ote following statements conceing the p valu in tha hypothe testing proba lecorrect (2) The p vat a 0.0359 the probabity of obtaining a samplamean K of2.16 or more then the nul hypothesis corect and y= 2. (0) The pale ie equal to 04864 (6) The p vale is vice the probably of ebtanng a valu for the same mean X of 2.15 or ‘ore, when the population mean hes the valuoin the rl hypothe, (2) The p vais the probably of obtaining a valuo forthe sampla mean X of2.15 or more, han the population mean hae the vale of 215. (e) Nene a the above Question 18 ‘Tho asset manager dais that f sho use @ sample sizeof = 35 the seo he camping ‘ror may be oo lrge. Sho decides to select a value for nin such away tat she can bo 95% confident thatthe sampling eer. ho stance betveen X and yi 0.2 ess. we krow {hat = 0.5 which of te folowing statements coroct (a) The curentsarpe ze arger tan the sample size she requires. (©) The sample size she needs 48, (©) Her sample szo of 3 the caret sample sia. (@) The cuent sample size i as than tha sample size she requires, (0) Nene ofthe abovo. ‘QUESTION 19 ich ofthe folowing descriptions of what happens when the manager makes a Type I or “hen testing the given hypotheses is corect (a) Sho wronalyaccopts Hp and kepe tho exting clanors (6) Sho wronly rejects Hy and hires new cleaners when sho shoul not. (@ She wrongly accepts Hy and doesnot oop the existing deanors when she shout (@) She wrongly rejects Hy and doesnot kop the ol leaners when she oul (6) None o the above ‘question 20 {the managers equal concerned withthe consequences associated wih the Type | Eor ‘26 ha Type ror in his problem. Which ofthe folowing actors isthe sorectacton. (a) Use 22 ta tot so that eho wil be aioe ax sure that ehefnot making» Type | Exe (6) Use a smal level of significance suchas a= 0.01 (©) Sot up tho decision rule so that he probabty of making a Type I iors we the ‘probabity of making a Type Ero, (c) Use a larger vate of «auch a 0.150 0.2, (6) None oft above ECONIOS5 SEMESTER 1, 2006 10 |. SIMPLE LINEAR REGRESSION AND CORRELATION. INFORMATION NEEDED TO ANSWER QUESTIONS 21 TO 25 “The manager ofthe customer complints section of large homeware manufacturer Inteceetod in finding the rlationeip between tre total aunt of ne that any employeo ‘sponds talking to customers ina typical 1 hour period (Y) an the number of cls that he or she anewert in that 1 how perod(X), He decides to look a a random sarpiaof n= 72 ‘ferent one hour pores and note bot) theme spent aking on the phone 1). rounded to ‘he nearest minute) and the number of cals tha the tar member answers. Forts patledar sample of n= 72 vales he obtain the flowing set ofS valves ws xem ond EF = soon NB. WHEN YOU PERFORM ANY CALCULATIONS FOR THESE QUESTIONS YOU. [NEED ONLY USE VALUES THAT ARE ROUNDED TO 4 DECIMAL PLACES, ‘QUESTION 2t Wich ofthe folowing sets of valves, (which are rounded to 3 daclmal plates) shows the correct values ofthe 3 tema (A or SSXVB or SEX and Cor SST) hat we we when performing calcuatons in regression preter. (@)A=916, B= 460 and C= 2124875, (@)A=400,B = 016 and C= 2124876 (@A=-916,8 = 400 and C= 2124875, (A=2124.075, 8 400 and C #516 {@) None ofthe above ‘question 22 mich fhe folowing statements concring the estimatod valu fhe slope of the simplo linear pression ne (hese values are rounded to 3 decimal places) is correct (a) The ecimated slope o 1.9 shows the impact ofthe ime spent on ho ttaphone cn he number of cal recaved, (0) The estimated slope is greater than 3.5. (©) The estimated slope i greater han the estimated intercept (@ Tha estimated lope of 1.99 shows te impacto the numberof calle on te tre spent on he telephone. (Noe ofthe above ECON0S5 SEMESTER 1,2005 11 ‘quesmioN 23 ‘The sna now caeustes the creation coefilant (for hese to varies, \Whicn ofthe folowing statements is correct (4) The r value of 0.8584 shows that there a strong postive oatinship btwoon those wo variabies (0) The value of 05285 inate hat href no relaonaip between hace bo vibes (© Ther vie of 0.8504 ncoatasthat here is # erongrelatonehip between these ‘two viable but we donot knew his reatinship i postive negate. (6) The rvaue of © 265 cals ha there ia strong postive relaorstir between ‘hse two variates. {) None of te above ‘QUESTION 24 Which ofthe flowing statements about the standard ero ofthe estimate Sys correct, (The values have been rounded to 3 decimal places) (a) As three Sx value greater than 1.0 there must bef significant pave relatontip betieen these varbis. (b) Because he Sir value i loss than 1.06 thls shows that her ia nota sgcant postive Felationaip between thee we vaiabies. (0) The Siva is boowoen 4 and 8. (@) The Sr valu of 2073 the standard deviation of the oxor terms in the regression modo. (e) None of the above QuEsTiON 2 men you est water tho nul hypothe that the valu f the slope er he population's ‘qu oO against tha atoraive hyphecle hat ee not agua O wth « =C.08, wich of the falowing statment is correct (@) As tet statistic has a value of over 20 whichis grater than tho cca valve 1.98 we i ject he rll hyperhoss and conc that hero significant reeonship botnoon hese two varebles, (Aa thes 2 2-Tall oat we must die the cia value of 23848 by 2 {6) While thot ttc has value which elees than 10 ie ea greater nan tho era vale wich is 1.645 (@) Aste static has a value of ver 20 whic le greater than thecal alse 1.98 wo ‘wi accept the null ypashes and concidethat here ia net grit raltionsip etuoen hone to varies (None ofthe above ECOMIO08 SEMESTER 1, 200812 SECTION B: ECON 1035 § PRACTICAL QUESTIONS ‘5 Practica Questions worth 10 marks each (Sx 10 = 50 marks) Enter all our worldng and answers in the spaces provided under the questions. ‘you require extra apace for your working writ onthe blank page opposite tothe ‘examination questions. QUESTION | “The france officer for fim which imports and dries Asian groceries is king at the expanea clans of ttn the marketing scton of th fem. She takes arencom sample of ‘n= 64 expane claims. The vakies sho oblane ae arranged in ascendg rer and pled in he fobowing table ‘he fe hat for those values har sum and thei sum ef squares areas flows 3x, = zee ond Ext = easoare (2) Find the 3 messures of canal tendency Le. the mean, te mesian the moe lon with ‘the values of Quarle 1 ard Quarto 2 tis suggested that you perform the folowing caleulations when you answer his quoston. Find te mean ECON%036 SEMESTER 1, 2008 13, QUESTION 1a) (continued) Fd tne men Fie he Mode Find he Feat Quare Fi the third Quarto ECONTOSS SEMESTER 1, 2008 14 ‘QUESTION + (continued) (©) Srey expat you tink thatthe set of vans so not tuted yma. tis suggested tht you perform the folowing stops when you answer the question, Compare the values of the mean and the mean Compare the vate nthe 5 number summary Le the minimum vue, Ne Fat quart, he median, the thr quate end the masimam vai. ‘ccOM05 SEMESTER 7005 18 QUESTION 1 (continued) (©) Fe the sample ecto of he standard deviation an then the eal of vaios ‘whichis one standard devation below the mean and one standard éeviton above the mean (Find the proportion ofthe 64 vals which Ke inthe intwval wich exten one ‘fandard devation on ether se ofthe ean, Bi daouss weather acu gre o agross wi the empl ule. ECOMIO95 SEMESTER 1, 2008 18 ‘QUESTION? (@) The france ofcr fora frm which imports and tious Asian grocer ooking st the actors which afer he love of the expense cams of staffin the maritng secon ofthe im. She defines expense cms of $40 oF more a high (H) and hms of les than $40 cols ast high (NH). She thnks that he romber of ih cans i ected bythe amount of ime that a saff member has werked fr the fm. She cal tt who have worked forthe frm for 2 years of mere fog tem if (.) and staf vo have boon with frm for less han 2 years ae cae shor term (S) stat Using random sample on = 64 expense clans and employment recor the france ‘fcr obtain the folowing contingency table which shows the number of cis eseosiated wih each combination of ho type of expense claim (H or NH) andthe ype of ‘employ (Lor 8). TYPE OF eueLover Long Term) Sher Tem (8) on [noth 20 20 Using he above tbieanewer the following quesions (0 Fire folowing probabities POLAND S) Pe AND Ne POLAND NH), (0 Find the folowing probab PL, Ones). -ECONs035 SEMESTER 1, 2006 ” QUESTION 22) (continued) (Bray expan why te Type of Employee and he Type ot Expense Clim are or ae not independent (©) Ate earning a numberof expense cai he finance ooo fins that many of tho forme were file n incorrect. By examining a large numberof cams she fds tthe ‘robabity that an expense clan form is et led in caret isp = 0.25. Shao finds ‘hat he numberof expense claim forme no filed in corey has a Brora dtrbuton Ifshe amines n= 8 expense claim foe: {9 Whatie ho everage andthe variance ofthe number of cli forms tht are nt led incorecty? (ap What the probabity tht 2 oF moe of he 8 aim forme are not cn eorecty? ECOWI026 SEMESTER 1, 2008 10 ‘QUESTION 2 (continued) (@ Suop0ce the france ofc nde that the number of an fos not Mladin corey dose not have a Binal tbuton intsod sho fnds out tat on anyday the number fam forme that are not led in corey has Poeson detrbuton with an average ruber for each day off =2 (0 Whatis the averape and the variance of the number ofc forms at ae not ‘lod in corey on any one day? {Whats the probabty at onary day 2 or mor ofthe ca orm arent ied conecty? EOONIO35 SEMESTER 1,2008 19 ‘questions ‘The manager of a chain of clothing stores wishes to use certain statistical procedures ion akin the decision wheter o averse trough the local TV stato. This station ‘roadcats oa areas where tho stores ae located. To lp him when he is mang the