ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Statistics )

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE'S OWN WILL BE PENALIZED AS DEFINED IN
"AIOU PLAGIARISM POLICY".

Course: Business Statistics (1430) Semester: Autumn, 2021

Level: BA/B. Com/BBA (Renamed as Associate Degree )

Please read the following instructions for writing your assignments. (SSC, HSSC &
BA Programmes)
All questions are compulsory and carry equal marks but within a question the marks are
distributed according to its requirements.
Read the question carefully and then answer it according to the requirements of the
question.
Late submission of assignments will not be accepted.
Your own analysis and synthesis will be appreciated.
Avoid irrelevant discussion/information and reproducing from books, study guide or allied
material.

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 1
(Unit: 1– 4)
Q. 1 Differentiate between the following: (i) frequency distribution (ii) relative
frequency distribution and (iii) cumulative frequency distribution.
(20)

Q. 2 The Real Estate Property Dealers collected the data on a sample of 130 sale
people representing their commission earning (in dollars) annually: (20)
Earnings Frequency
5000 or less 5
5000 – 10000 9
10001 – 15000 11
15001 – 20000 33
20001 – 30000 37
30001 – 40000 19
40001 – 50000 9
Over 50000 7
Construct frequency polygon, frequency curve and ogive and explain what

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 conclusion can be drawn from these figures.
Q. 3 (a) Define mean, median and mode and explain how these can help to identify
the type of distribution. (10+10=20)
(b) Identify the type of distribution of the following data by computing mean,
median and mode:
Class 0.0–0.99 1.0–1.99 2.0 –2.99 3.0–3.99 4.0–4.99 5.0–5.99 6.0–6.99
Frequency 2 4 6 7 5 3 1

Q. 4 (a) Explain the calculation of quartiles for ungrouped and grouped data. (10+10)
(b) Here are student scores on a statistics test. Find the quartiles.
95 81 59 68 100 92 75 67 85 79
71 88 100 94 87 65 93 72 83 91

Q. 5 A personnel specialist of a major corporation is recruiting a large number of

employees for an overseas assignment. During the testing process, management
asks how things are going and she replies, “I think the average score on the
aptitude test will be around 90.” When management reviews 20 of the test results
compiled, it finds that the mean score is 84, and the standard deviation of this score
is 11. If management wants to test her hypothesis, what is the procedure at: (10+10)
(a) 10% level of significance.
(b) 20% level of significance.

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 2
(Unit: 5–7)

Q. 1 Differentiate between the following hypotheses testing terms. (5+5+5+5)

(a) Type I and II errors, (b) One and two tailed tests, (c) Z-test and t-test and
(d) Tests for independent and dependent samples from normal
distributions.

Q. 2 (a) Explain the process for testing differences between proportions for large
sample sizes. (10+10)
(b) Nine computer components dealers in major metropolitan areas were asked
for their prices (in dollars) on two similar color inkjet printers. The results of
this survey are given below. At  = 0.05, is it reasonable to assert that the
Epson Printer is less expensive than the Okay data Printer.

Dealer 1 2 3 4 5 6 7 8 9
Epson Price 250 319 285 260 305 295 289 309 275
Okaydata Printer 270 325 269 275 289 285 295 325 300

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Q. 3 In preparation for contract renewal negotiations, the United Manufacturing
Workers surveyed its members to see whether they preferred a large increase
retirement benefits or a smaller increase in salary. In a group of 1000 male
members who were pooled, 743 were in favor of increased retirement benefits. Of
500 female members surveyed, 405 favored the increase in retirement benefits.
(4+6+10)
(a) Calculate .
(b) Compute standard error of the difference between the two proportions.
(c) Test the hypothesis that equal proportions of men and women are in a favor
of increased retirement benefits at  = 0.05

Q. 4 The city council has gathered data on the number of minor traffic accidents
and the number of youth soccer games that occur in the town over weekend.
(5+5+5+5)
X (soccer games) 20 30 10 12 15 25 34
Y (minor accidents) 6 9 4 5 7 8 9

(a) Plot these data.

(b) Develop the estimating equation that best describe these data.
(c) Predict the number minor traffic accidents that will occur on a weekend during
which 33 soccer games take place.
(d) Calculate the standard error of estimate.

Q. 5 Charles Widget is in charge of keeping in stock certain items that his company
needs in repairing its machines. Since he started his job 3 years ago, he has been
observing the changes in the following table in order to calculate a fixed-weight
aggregates price index.
(10+10)
(a) Calculate fixed-weight aggregates price index for Mr. Widget using 1993 as
the base period.
(b) Compare the index in part (a) with Paasche index.

Price per item Averaged No. used

Item
1993 1994 1995 during 3-year period
W-gadget $1.25 $1.50 $2.00 900
X-gadget 6.50 7.00 6.25 50
Y-gadget 5.25 5.90 6.40 175
Z-gadget 0.50 0.80 1.00 200

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