BUS105: Statistics

Seminar 6 – Summary Practice

Exam Briefing

• Four Questions with several parts

• Covers ALL topics in Unit 1 to 3
• 100 marks (50%)
• Duration: 2 hours
• SUSS will announce exam date
• Formula List and Statistical tables are provided (see
attachment for Seminar 1 folder).
• Calculators that are not communication devices are allowed.

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Exam Briefing

 Assess the Learning Outcomes of BUS105e

 See Online Revision Video

 Four broad themes:

 Descriptive Statistics
 Probabilities
 Inferential Statistics on Mean(s) and Proportion(s)
 Linear Regression

 Attempt the questions in ‘BUS105 Self-Practices’ after you have done your
preparation.

Activity 6.1

The monthly U.S. unemployment rates from January 2003 to January

2013 can be shown as a histogram or as a time series plot.

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Activity 6.1: Cont’d

a. What features of the data are clear in the histogram but are not clear
in the time series plot?

b. What features of the data are clear in the time series plot but are not
clear in the histogram?

c. Which graphical display seems to be the better way to present the

unemployment rate data? Explain.

d. Write a brief description of the changes of unemployment rate in the

United States over this time period.

Activity 6.2

The number of connections on the Internet during any two-minute

period is given by the following distribution:

Number of Proportion Within a two-minute period, determine the

Times
0 0.1
1 0.2
2 0.1
3 0.4
4 0.2
a. probability of having more than 2
connections
b. mean number of times a connection is
made
c. standard deviation of the number of
connections made

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Activity 6.3
Mr. Tan runs a small restaurant and recorded his daily revenue for a month
as shown in the table.

Assume that the daily revenue is normally distributed with mean $4500
and the sample standard deviation is a reasonable substitute for the
population standard deviation, calculate the
Revenue
a) Probability that the revenue of a
Mean 4560.67
random day is more than $4700. Standard Error 110.1175
Median 4575
b) Probability that the mean Mode 4890
Standard Deviation 603.10
revenue (of 30 days) is less than $4200.
Sample Variance 363730
Count 30

Break

Take this opportunity to network with your

classmates.

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Activity 6.4
ASUSS Insurance (S) Pte Ltd is an established motor insurance company in
Singapore. Its CEO, Mr. Tan suspected that the average claim amount for the
company seems to be higher than others. As such, Mr. Tan compiled the
claimed amount for 28 recent motor insurance claims. He also managed to
obtain similar information (27 claims) from a competitor, PA Insurance. The
summary statistics is shown in the table.
Claims (S$)
Construct a 95% confidence ASUSS PA
Mean 2557.86 1791.67
interval for the mean insurance Standard Error 78.09 60.03
Median 2525.00 1825.00
claim of ASUSS. Based on the Mode 2525.00 1825.00
Standard Deviation 413.22 311.94
data available, do you think Sample Variance 170747.09 97307.69
Mr. Tan suspicion is reasonable? Range 1700.00 1175.00
Count 28.00 27.00

Confidence Level(95.0%) 160.23 123.40

Activity 6.5
Continue with the case in Activity 6.4, conducted an appropriate hypothesis test
at α = 0.05 to determine if the mean claim amount of ASUSS Insurance is
significantly higher than PA Insurance. The following report will be of use.
t-Test: Two-Sample Assuming Equal Variances

ASUSS PA
Mean 2557.86 1791.67
Variance 170747.09 97307.69
Observations 28.00 27.00
Pooled Variance 134720.22
Hypothesized Mean Difference 0
df 53
t Stat 7.74
P(T<=t) one-tail 1.46194E-10
t Critical one-tail 1.67
P(T<=t) two-tail 2.92387E-10
t Critical two-tail 2.006

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Activity 6.6
ASUSS Delivery Pte Ltd determined that the daily total travel time (in hours) is dependent
on the number of deliveries and distance travelled (in km). Relevant data was collected
and a multiple regression analysis is applied on Excel to produce the following report:

Activity 6.6: Cont’d

(a) Describe the linear relationship underlying the data by writing down the linear
equation that relates the Total Travel Time to the Number of Deliveries and km-
travelled. Interpret the coefficients obtained.

(b) State the coefficient of determination and the adjusted coefficient of determination.
Interpret them and explain how they are different from each other.

(c) Conduct a global test of hypothesis on the regression model at the 5% significance
level to investigate whether or not all the independent variables have zero
regression coefficients. Lay down your steps carefully.

(d) What are the assumptions made when the method of regression is applied to study
data? Discuss these assumptions in the context of the delivery problem.

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Thank You