Faculty of Business and Law

Course: BA (Hons) Accounting and Finance

Modul: UGB 108 Quantitative Methods for Business
Module Leader: Eric Yeboah

Submitted by:
Question 1: a)

Group Mid-point

𝑥 𝑓 𝑓𝑥 𝑓𝑥2
30 but less than 35 32.5 17 552.5 17956
35 but less than 40 37.5 24 900.0 33750
40 but less than 45 42.5 19 807.5 34319
45 but less than 50 47.5 28 1330.0 63175
50 but less than 55 52.5 19 997.5 52369
55 but less than 60 57.5 13 747.5 42981

mean 120 5335.0 244550

∑𝑓𝑥 5335
i. 𝑥= ∑𝑓
= 120
= 44.5 milliseconds
∑𝑓𝑥2 ∑𝑓𝑥 2 5335 2
ii. 𝑠= ∑𝑓 ― ( )
∑𝑓
=
244 550
120 ― ( )
120
=

=7.8milliseconds

iii) From the grouped of the data set it is clear that both of the measures above are
estimates, and the them original access time is not known Francis A. (2004 p.592).
(b) Simple random sampling is a method used for the collection of statistical
data in which each item or person in the population has an identical chance of being
selected (Lind, Marchal and Wathen, 2006).
Usually, to select an individual items from a certain specific sampling frame random
sampling numbers are used. Examples of uses of sample random sampling
methods like random draws or lotteries. Random sampling is used in science
to lead blinded experiments or for randomized control tests (Hayes A., 2019.).

Quota sampling method is a non-random type of sampling which is

widespread in the market resources. Usually this method used a street team of
interviewers, with a quota of particular characteristic classes of people, which have to
collect information from passers-by Francis A., (2004, p.582).

Sample frame is the framework of the population from which the sample is to
be chosen. Samples are drawn from frames. To beginning a sampling process
starting point is to defining the frame, in other words that is the listing of items that
make up the population. Inaccurate results can occur if the frame does not include
particular sections of the population. The different frames could conclude differently.
An example of sample frames are data sources such as maps, population lists or
directories, another example of sampling frame could be a stock list, if a random
sample was needed from a present warehouse inventory Berenson, Levine and
Krehbiel (2012).

Custer sampling method is a non-random method without sample frame. It

is specified with breaking in the population into a different group, also called cluster.
Once the researchers are ready with the group categories, they take a random
sample from the chosen clusters and make their analyses in the sampled cluster data
basis. Most commonly used cluster is a geographical if researchers wanted to know
the academic performance of the graduate students in UK firstly, they divide the
whole population in the country into cluster cities, next they select number of the
clusters, and finally randomly research from their clusters Francis A., (2004, p.582).
 (c) Cumulative frequency distribution from these data, using seven class
intervals of equal with

The smallest presented of the data set value it is equal to 3 and the largest presented
of the data set value is equal to 30. The data set was broad in to seven classes and
each of them will have a class width of approximately 5 and that was found by this
calculation: 30 ÷ 7 =5.

Number Number of Cum f F%

of rejects periods (f) (F)

0 to 4 II 2 2 4
5 to9 III 3 5 10
10 to 14 IIII 4 9 18
15 to 19 IIII II 7 16 32
20 to 24 IIII IIII IIII IIII 20 36 72
25 to 29 IIII IIII I 11 47 94
30 to 34 III 3 50 100

(Francis A., 2004, p.592)

Question 3: Probability line of solving a problem

As likely
Impossible as not Certain

John Chris Albert

1 1 𝟏
0 6
Unlikely 3 𝟐
Likely 1
0% 17% 34% 50% 100%

(a)
1 1 1
1.Probability (everyone solves the problem) P=
2 ×3×6

2. Probability (only 1 solves it)

P(Chris solves, Albert not, John not) + P(Chris not, Albert solves, John not) + P(Chris
not, Albert not, John solves)

1 2 5 1 1 5 1 2 1
=2 × 3 × 6 + 2 × ×3 6 + 2 × × 3 6
=

10 5 2 17
36
+ 36 +36 =36 = 0.47= 47 %

1 2 5 10 5
3.Probability (no one solve it) =
2 × 3 × 6 = 36 =18 =0.27= 27%

4. Probability at least 1 of them solves it is equal to the sum of the top 7 outcomes on
the list which is a bit long, another way to solve is to be realised that the sum of all
probabilities must be equal to 1 therefore, the probability of at least one of them
solve it should be :
P (at least one of them solve it) = 1 - P(no one solve it)
 5 13
=1-
18
=18= 0.72 = 72%
(b)

Box A contain 3 white balls + 2 blue balls = Total of 5 balls for box A

Box B contain 4 green balls + 5 blue balls = Total of 9 balls for box B

i) In the requirement it’s state that if a ball is picked at random from every box.
Therefore, to find what is the probability of picking one white and other green ball we
have to use the formula: P(A ∩ B) = P(A) x P(B)
3
The probability to pick white ball from the box A is = and the probability to pick a
5
4
green ball from the box B is =
9

4 3
Therefore, the P (picked a green & white ball from box A and B) = ×5=
9
12
= 45 = 0.266=26.6%

ii) It is required to be found what is the probability if the ball is picked at random
from each box to pick two blue balls or two balls of the same colour, so to find what is
the probability of picking one white and other green ball we have to use the formula:
P (A ∩ B) = P(A) x P(B)
2
Therefore, the probability to pick blue ball from box A is = and the probability to
5
5
pick another blue ball from the box B is =
9
2 5
P (picked a blue & blue ball from box A and B) = ×9=
5
10
= 45 = 0.222=22.2%
Question 4
a)
The quality value (y say) has already been ranked in descending order of quality and
it seems reasonable to do the same for price (x say).

Subject 𝑟𝑥 𝑟𝑦 D=(x-y) 𝑑2
T 2 2 0 0
U 5 6 1 1
V 7 7 0 0
W 4 4 0 0
X 1 3 2 4
Y 6 5 1 1
Z 3 1 2 4

N=7 ∑𝑟𝑥=28 ∑𝑟𝑦=28 ∑ 𝐷= 6

∑𝑑 2
= 10

Whit n=7 and ∑𝑑2=10, the calculations for the rank coefficient are:

6 ∗ ∑ 𝐷2 6∑𝑑2 6 ∗ 10
rho = 1 -
𝑁3 ― 𝑁
=1- =7 ∗ 48 = 0.821 (3D)
𝑛(𝑛2 ― 1)

A coefficient of this value shows a high rate of positive correlation, which it means
that in general the consumers get value for money (Francis A.,2004 p.207).
 b) Pearson’s product moment correlation calculation:

Employ 1st Test 2nd Test 𝑥2 𝑦2 XY

ee Weeks Number of
experienc rejects (Y)
e (X)
A 4 21 16 441 84
B 5 22 25 484 110
C 7 15 49 225 105
D 9 18 81 324 162
E 10 14 100 196 140
F 11 14 121 196 154
G 12 11 144 121 132
H 14 17 196 289 238
N=8
∑𝑥 = 72∑𝑦 = 128∑𝑥 2
∑𝑦
= 732 2
∑𝑥𝑦 = 1069
= 2156

Therefore, using this formula will interpret its value.

(∑𝑋) ∗ (∑𝑦)
∑𝑋𝑌 ―
=
𝑁
r=
( ∑ 𝑋) 2 (∑𝑌)2
(∑ 𝑋 ―
2
𝑁 ) ∗ (∑ 𝑌 ― 2
𝑁 )
1069
1069 ―
r= =
8

(72)2 (128)2
(732 ― ) ∗ (2156 ―
8 8 )
 1069 ― 133.625
r= =
(732 ― 8) ∗ (2156 ―
5184 16384
8 )
935.38 935.38
r= = = 9.8 (Hannagan T., 1996, p.231)
9072 95.25
Reference list

1. Berenson, L.M., Levine M.D. and Krehbiel, C.T. (2012) Basic Business
Statistics Concepts and Applications. Harlow, England: Pearson Education
Limited. Twelfth Edition.

2. Francis, A. (2004) Business mathematics and statistics. Nottingham, UK:

Thomson Learning. Sixth edition.

3. Hannagan, T. (1996) GCSE statistics. Hampshire, UK: Macmillan press LTD.

third edition.

4. Hayes, A. (2019, Apr 30) Simple Random Sample. Available

at: https://www.investopedia.com/terms/s/simple-random-
sample.asp (Accessed: 10/04/2019).

5. Lind, A.D., Marchal G.W. and Wathen, A.S. (2006) Basic Statistics for
Business and Economics. US: McGraw-Hill/Irwin. Fifth Edition.