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BUSINESS STATISTICS (BS101B)

FINAL ASSESSMENT GUIDELINES
MAY 2020

GENERAL

These guidelines are prepared to assist in the marking process as they indicate (a)
the correct answer and (b) how marks should be allocated.

In evaluating answers, markers must keep in mind that the IMM Graduate School
examinations are set on a higher-education level and that the student should
therefore not only illustrate an adequate understanding of theory, but also insight
into the application of knowledge. In addition, the student should illustrate
independent critical thinking.

The marker accepts that the student should be familiar with the contents of the study
guide and the prescribed textbook. If, however, factual and correct information is
included from other valid academic sources besides the study guide and the
prescribed textbook, such knowledge and insights also qualify for the allocation of
marks.

When answering questions, the student is required to:

 Read every question carefully and thoroughly before attempting the answer
in order to determine exactly what is required.
 Allocate sufficient time to answer every question in proportion to the marks
indicated on the examination paper.
 Number answers clearly and correctly.
 Provide answers in a legible handwritten format.
 Set out the answers in a structured format and formulate statements in full
and coherent sentences.

As the guidelines accompany the examination paper and are prepared prior to the
examination session, they are not able to include areas where the students provided
incorrect answers.

The guidelines are also central to the moderating team when performing moderation
of examination scripts.

© IMM Graduate School

May 2020 Final Assessment Guidelines BS101B
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References are to the prescribed textbook: Wegner, T. (2016) Applied Business

Statistics: Methods and Excel-based Applications. 4th ed. Juta (or the 2012, 3rd
ed.), and Institute of Marketing Management Graduate School. (2018) BS101,
Business Statistics 1 Study Guide. South Africa: Institute of Marketing Management
Graduate School.

QUESTION 1 [20]

Ordered data set:

1 2 2 2 4 4 6 6 8 15

∑ 𝑥𝑖 50
1.1 𝑥̅ = 𝑛
= 10 √ = 5 days√

People were absent from work for 5 days on average over the past financial
year. √ (3)
(𝑛+1)𝑡ℎ 11
1.2 Median position = 2
= 2
√ = 5,5𝑡ℎ 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛√
𝑀𝑒 = 4 𝑑𝑎𝑦𝑠√

Or also accept

(𝑛)𝑡ℎ 10
Median position = 2
= 2
√ = 5𝑡ℎ 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛√
𝑀𝑒 = 4 𝑑𝑎𝑦𝑠√
(3)
𝑛+1 𝑡ℎ 10+1
𝑄1 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = ( )
4
=
4
√ = 2,75𝑡ℎ 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛√
𝑄1 = 2 + 0,75(2 − 2) = 2 𝑑𝑎𝑦𝑠√
25% of employees were absent for no more than 2 days altogether. √

𝑡ℎ
3(𝑛 + 1) 3(10 + 1)
𝑄3 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = = √ = 8,25𝑡ℎ 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛√
4 4
𝑄3 = 6 + 0,25(8 − 6) = 6,5 𝑑𝑎𝑦𝑠√

25% of employees were absent for more than 6,5 days altogether. √ (8)

1.3 Mode: 2. √ The most common number of days absent was 2 days√. (2)

1.4 Yes, the person who was absent for 15 days can be seen as an outlier. The value
is above 13,25, as calculated below: √
𝑄3 + 1,5(𝑄3 − 𝑄1 ) = 6,5 + 1,5(6,5 − 2) = 13,25√ (2)

1.5 Yes√, they are successful. Average per month = 5/12 = 0,42 days, which is less
than 1 day per month. √ (2)

© IMM Graduate School

May 2020 Final Assessment Guidelines BS101B
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(Institute of Marketing Management Graduate School, 2018, Study Unit 2; Wegner,

2016, Chapter 3)

Learning outcomes:
- Transform raw, unprocessed data into organised data that is useful for marketing
decision-making.
- Recognise applications of descriptive statistics in marketing decision-making.
- Identify the various measures of central tendency for ungrouped data.
- Complete these central location measures and quartiles.
- Understand why the various measures are valuable in marketing decision-
making.
- Use the various measures to solve marketing problems.

QUESTION 2 [20]

2.1 (5)
Distance (km) Frequency % Frequency
1–9 1 6,67%√
10–19 6 40%√
20–29 4 26,67%√
30–39 3 20%√
40–49 1 6,67%√

2.2 𝑃(10 − 19 𝑘𝑚) = 40%√√ (2)

2.3 𝑃(1 𝑘𝑚 − 9 𝑘𝑚 𝑜𝑟 40 𝑘𝑚 − 49 𝑘𝑚) = 6,67% + 6,67%√ = 13,33%√ (2)

2.4 In 2.2 the marginal probability√ was used, in 2.3 the addition rule of mutually
exclusive events√ was used. (2)

2.5 𝑃(𝑋 < 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) √

𝑒 −6,25 6,250 𝑒 −6,25 6,251
√+ √
0! 1!
0,00193√ + 0,01207√ = 0,014 ≈ 1,4%√
(6)

2.6 There is a small chance (1,4%) that fewer than two motorists will not pay any e-
toll fees. √√ (2)

2.7 Poisson probability distribution. √ (1)

(Institute of Marketing Management Graduate School, 2018, Study Unit 3; Wegner,

2016, Chapter 4–5)

Learning outcomes:
- Apply rules of probability to empirical data.
- Define different types of probabilities.
- Construct and interpret probabilities from joint probability tables.

© IMM Graduate School

May 2020 Final Assessment Guidelines BS101B
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- Understand the concept of probability distribution.

- Describe the Poisson probability distribution.
- Recognise when to apply the Poisson distribution in marketing decision-making.
- Compute and interpret probabilities using the Poisson distribution.

QUESTION 3 [20]

3.1 To test whether a claim/statement made about a population parameter value is

probably true or false, based on sample evidence. √√ (2)
3.2
3.2.1 𝐻0 : 𝜇 ≤ 48 ℎ𝑜𝑢𝑟𝑠 √and 𝐻1 : 𝜇 > 48 ℎ𝑜𝑢𝑟𝑠√ (2)

3.2.2 Use the z-statistic since 𝜎 is known (𝜎 = 15 ℎ𝑜𝑢𝑟𝑠)

Area of acceptance 𝑧 ≤ 1,28 (Read off 0,4 from z-table)

Calculate the sample test statistic:

𝑥̅ −𝜇 (52−48)√
𝑧 − 𝑠𝑡𝑎𝑡 = 𝜎 = 15 = 1,87√√ (4)
√n
√
√49

3.2.3 Statistical conclusion:

Since z-stat (1,87) > z-crit (1,28), there is sufficient sample evidence at the 10%
level of significance to reject H0 in favour of H1 (reject H0). √

Management conclusion:
Conclude that the local importer's claim is valid. Consignments are taking
significantly longer than 48 hours to clear customs. √ (2)

3.3.1 𝐻0 : 𝑓0 = 𝑓𝑒 ; theft claims in Gauteng in past 12 months are the same as in the past five
years. √
𝐻1 : 𝑓0 ≠ 𝑓𝑒 ; theft claims in Gauteng in past 12 months are not the same as in the past
five years. √ (2)

3.3.2 (5)
(𝑓0 −𝑓𝑒 )2
𝑓0 𝑓𝑒 (𝑓0 − 𝑓𝑒 )2 𝑓𝑒
Sandton 300 200 10 000 50 √
Pretoria North 120 175 3 025 17,29 √
Germiston 20 50 900 18 √
Centurion 60 75 225 3√
Total 500 500 88,29 √

3.3.3 88,29 is higher than 7,815 √. Reject the null hypothesis, as 88,29 falls outside the
range of acceptance. √ The results of the new theft model show that the theft
claims in Gauteng in the past 12 months are very different from what they were
five years ago. √ (3)

(Institute of Marketing Management Graduate School, 2018, Study Unit 4; Wegner,

2016, Chapter 8 and 10)
© IMM Graduate School
May 2020 Final Assessment Guidelines BS101B
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Learning outcomes:
- Understand the concept of hypothesis testing.
- Perform hypothesis tests for a single population proportion.
- Correctly interpret the results of the hypothesis test.
- Correctly translate the statistical results into a management conclusion.
- Understand the concept of the chi-squared statistic.
- Perform independence of association hypothesis tests.
- Interpret probability findings and apply them to a marketing problem.

QUESTION 4 [20]

4.1 Regression analysis defines the structural relationship between two numeric
variables as a mathematical equation (usually a straight-line equation). √ Its
purpose is to use the equation for estimation/prediction purposes. √ (2)

4.2 Dependent variable, y. √ √ (2)

4.3 An independent variable, x, is used as a predictor of the dependent variable. √ √

(2)
4.4
4.4.1 (10)
𝑥 𝑦 𝑥2 𝑥𝑦
5 60 25 300
10 76 100 760
8 81 64 648
7 72 49 504
15 90 225 1 350
9 45 81 405
1 31 1 31
6 62 36 372
2 39 4 78
12 80 144 960

∑ 𝑥 = 75 √ ∑ 𝑦 = 636 √ ∑ 𝑥 2 = 729 √ ∑ 𝑥𝑦 = 5 408 √

10 × 5 408 − (75 × 636)

𝑏1 = = 3,8318 √
10 × 729 − 752
636 − 3,8318 × 75
𝑏0 = √ = 34,8613 √
10

𝑦̂ = 3,83𝑥 + 34,86√

4.4.2 𝑦̂ = 3,83𝑥 + 34,86 = 3,83 × 12,5 + 34,86 √ = 82,74% √ (2)

Note to marker: Allow for different rounding off used from answer in 4.4.1.

© IMM Graduate School

May 2020 Final Assessment Guidelines BS101B
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4.4.3 There is a strong positive linear relationship between the hours that Grade 8
learners spend on homework and their exam marks.√ The Department of
Education should not reduce the amount of homework given to learners √ (2)

(Institute of Marketing Management Graduate School, 2018, Study Unit 4; Wegner,

2016, Chapter 12)

Learning outcomes:
- Explain the meaning of regression analysis.
- Construct a simple linear regression model.
- Use the regression line for prediction purposes.
- Interpret the correlation coefficient.

QUESTION 5 [20]

5.1 An index number is a single summary value that measures the overall change in
the level of activity of a single item or a basket of related items from one time
period to another. √

Example: Consumer price index (CPI) – the inflation indicator. √ (2)

5.2
5.2.1 (4)
2015 unit price 2019 unit price Price relatives
(R’000) (R’000)
Aluminium bull 35 45 128,57 √
bars
Battery trays 10 12 120 √
Pinnacle canopies 50 55 110 √
LED light bars 5 8 160 √

5.2.2 (6)
Base value (2017) Current value (2019)
𝑝0 × 𝑞0 𝑝1 × 𝑞0
Aluminium bull bars 35 x 20 = 700 45 x 20 = 900
Battery trays 10 x 35 = 350 12 x 35 = 420
Pinnacle canopies 50 x 10 = 500 55 x 10 = 550
LED light bars 5 x 50 = 250 8 x 50 = 400
∑ 𝑝0 × 𝑞0 = 1 800 √ ∑ 𝑝1 × 𝑞0 = 2 270 √

2 270
𝐿𝑎𝑠𝑝𝑒𝑦𝑟𝑒𝑠 𝑝𝑟𝑖𝑐𝑒 𝑖𝑛𝑑𝑒𝑥 = × 100
1 800
= 126,11 √

Interpretation: The cost of 4x4 accessory imports has increased by 26,1% on average
from 2017 to 2019. √

5.3

© IMM Graduate School

May 2020 Final Assessment Guidelines BS101B
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5.3.1 (6)
4 800
2017 5 200 15 800 /3 = 5 266,67 √
5 800 16 000 /3 = 5 333,33 √
5 000 16 300 /3 = 5 433,33 √
2018 5 500 16 500 /3 = 5 500 √
6 000 18 300 /3 = 6 100 √
6 800 19 900 /3 = 6 633,33 √
2019 7 100 21 400 /3 = 7 133,33
7 500

Note to marker: Deduct half marks if the rounding off is not to the nearest two decimal
places.

5.3.2 - The shipment cost is steadily increasing.

- Sep–Dec seems to have the highest cost, but this is probably linked to a higher
sales volume. √
- Wildog Adventures needs to make sure their shipment cost is not increasing
faster than the sales. √

Note to marker: Subjective answer – any relevant points can be given a mark. (2)

(Institute of Marketing Management Graduate School, 2018, Study Unit 5; Wegner,

2016, Chapter 13–14)

Learning outcomes:
- Use the Laspeyres price index method to calculate the price changes of a single
commodity.
- Identify the concepts of a time series of marketing data.
- Calculate and interpret the trend values in a time series.

© IMM Graduate School

May 2020 Final Assessment Guidelines BS101B