BACHELOR OF BUSINESS

(HONS)

QUIZ (SAMPLE )

SUBJECT CODE : QBM101

SUBJECT NAME : BUSINESS STATISTICS

This quiz carries 25% of the total assessment for this subject.

Examiner(s):
MR. HOO KEH YOONG

Date : TBC Time : TBC

Time allowed : 1.5 HOURS

INSTRUCTION(S):

a. This is a CLOSED BOOK examination.

b. Answer all 40 questions in the Multiple-Choice Answer sheet provided. Use 2B pencil only.
Answers written on the question paper will NOT be marked.

c. Materials permitted in the Examination:

- Non-programmable battery/solar calculator
- Statistical table and formulae sheets (provided)

4. Students are NOT permitted to retain this examination paper.

UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 3

(This question paper consists of 11 printed pages, including cover page and 1 page of formulae)

Answer ALL questions. Each question carries 2.5 marks.

Q1. Which of the two events are NOT mutually exclusive?

A. Rolling a die and getting a 2 or a 4.

B. Drawing a card from a deck and getting a club or an Ace.
C. Tossing a coin and getting a head or a tail.
D. Drawing a card from a deck and getting a King or a Queen.

Q2. Which of the following measures is the most likely to be influenced by outliers in the
data set?

A. Interquartile range
B. Median
C. Mode
D. Mean

Q3. If events A and B are mutually exclusive, which of the following statements is
TRUE?

A. Probability of A given B is zero.

B. Probability of B given A is zero.
C. Probability of A and B is equal to zero.
D. All the above statements are correct.

Q4. If events A and B are independent, which of the following statements is TRUE?

A. Probability of A given B is same as probability of B.

B. Probability of A given B is same as probability of A.
C. Probability of B given A is zero.
D. Probability of A given B is zero

Q5. Which of the following statements is TRUE?

I. A simple event is an event with only one outcome.
II. A compound event is an event with at least one outcome.
III. An event can be both simple and compound at the same time.
IV. An event cannot be both simple and compound at the same time.

A. I and IV only.
B. I, II, and IV only.
C. II and IV only.
D. I, II and III only.
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 4

Questions 6 to 10 are based on the following information:

In a sample survey, 100 students were selected in order to find out whether there is any
relationship between gender and examination passing rate. The table below shows the result
of the survey.

Male Female
Pass 45 30 75
Fail 15 10 25
60 40 100

Based on the information given above, answer the following questions.

Q6. What is the probability that a randomly selected student is a male?

A. 0.75
B. 0.60
C. 0.45
D. 0.40

Q7. What is the probability that a randomly selected student passed the exam?

A. 0.25
B. 0.60
C. 0.75
D. 0.40

Q8. What is the probability that a randomly selected student is either a male or passed the
exam?

A. 0.45
B. 0.55
C. 0.10
D. 0.90

Q9. What is the probability that a randomly selected student is a male given that the
student passed the exam?
A. 0.25
B. 0.75
C. 0.40
D. 0.60
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 5

Q10. Which one of the following statement is a wrong conclusion?

A. Male and female are mutually exclusive.
B. Pass and fail are mutually exclusive.
C. Gender is dependent of passing rate.
D. Passing rate is independent of gender.

Q11. Which one of the following is a characteristic of a discrete probability distribution?

A. The graph of the probability distribution is continuous.

B. The distribution includes all possible values of the random variable.
C. The sum of the probabilities of the random variable is more than one.
D. The probability of the random variable ranges from minus one to plus one.

Q12. Which of the following is (are) valid probability distribution(s)?

Table I:
X 0 1 2 3
P(x) -0.1 0.3 0.35 0.45

Table II:
X 2 4 5 8
P(x) 0.2 0.15 0.4 0.25

Table III:
X -3 -2 0 5
P(x) 0.1 0.2 0.3 0.4

A. I only
B. II only
C. I and II
D. II and III

Questions 13 to 17 are based on the following information:

The probability distribution of a discrete random variable X is shown below.
X 0 1 2 3 4
P(x) 0.05 0.10 0.20 0.30 0.35

Q13. Find P(X = 2).

A. 0.15
B. 0.35
C. 0.20
D. 0.65
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 6

Q14. Find P(X > 0).

A. 0.95
B. 0.05
C. 0.35
D. 1.00

Q15. Find P(1< X ≤ 4).

A. 0.95
B. 0.60
C. 0.85
D. 0.65

Q16. Find E(X).

A. 1.00
B. 2.80
C. 3.25
D. 2.85

Q17. Find Var(X).

A. 0.80
B. 1.17
C. 1.36
D. 2.80

Q18. Which one of the following is NOT a characteristic of a binomial distribution?

A. There must be a fixed number of trials.

B. The trials are independent of each other.
C. Each trial results in only two outcomes, called success and failure.
D. Probability of success (p) varies for each successive trial.

Q19. The shape of the probability distribution of a Binomial distribution with p = 0.15 is
__________.
A. Positively skewed.
B. Negatively skewed.
C. Symmetrical.
D. Depending on the value of n.
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 7

Questions 20 to 24 are based on the following information:

Given a Binomial random variable, X with n = 20 and p = 0.60

Q20. Find P(X = 6).

A. 0.0013
B. 0.0049
C. 0.1244
D. 0.0159

Q21. Find P(X < 3).

A. 0.0123
B. 0.0000
C. 1.0000
D. 0.0036

Q22. Find P(X ≥ 4).

A. 0.0123
B. 0.0000
C. 1.0000
D. 0.9841

Q23. Compute the expected value of the random variable X.

A. 4.8
B. 0.60
C. 20
D. 12

Q24. Compute the standard deviation of the random variable X.

A. 4.8
B. 0.60
C. 2.19
D. 12

Q25. Which of the following are NOT examples of discrete random variables?

I. The height of a building.

UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 8

II. The weight of an animal.

III. The number of students taking an examination.
IV. The frequency of robberies in a shopping mall.

A. I and II only.
B. I, II, and IV only.
C. III and IV only.
D. III only.

Q26. Which of the following statements is FALSE?

A. The probability of an event occurring is always between 0 and 1.

B. The sample space consists of all possible outcomes for an experiment.
C. An event may consist of more than one outcome.
D. If two events are independent, their joint probability is 0.

Q27. Which of the following statements is TRUE about the characteristics of the random
variables?

A. A Poisson distribution is a continuous random variable.

B. A Binomial distribution has an unlimited number of trials.
C. −1 ≤ 𝑝(𝑥) ≤ 1 for a random variable.
D. ∑𝑝(𝑥) = 1 for a random variable.

Questions 28 to 31 are based on the following information:

Given a Poisson random variable, X with mean equal to 3.5.

Q28. Find P(X = 1).

A. 0.1057
B. 0.0302
C. 0.1494
D. 0.0498
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 9

Q29. Find P(X < 3).

A. 0.5065
B. 0.5367
C. 0.2158
D. 0.3209

Q30. Find P(X > 4).

A. 0.1888
B. 0.5367
C. 0.4633
D. 0.2745

Q31. Compute the standard deviation of the random variable X.

A. 3.5
B. 1.00
C. 1.87
D. 12.25

Q32. Which one of the following is NOT a characteristic of a Poisson distribution?

A. There are n identical occurrences.
B. The occurrences are random.
C. The occurrences are independent.
D. X is a discrete random variable.
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 10

Q33. A continuous random variable is a random variable that

A. Assume only a countable set of values.

B. Assume any value in one or more intervals.
C. Have no random sample.
D. Always has mean equal to zero.

Q34. Which of the following statements is TRUE regarding a standard normal distribution?

A. The mean is equal to zero and standard deviation is equal to one.

B. The mean and standard deviation are both equal to one.
C. The mean is equal to one and standard deviation is equal to zero.
D. The mean and standard deviation are both equal to zero.

Q35. A larger standard deviation of a normal distribution indicates that the shape of
distribution becomes:

A. Narrower and more peaked.

B. Flatter and wider.
C. More skewed to the left.
D. More skewed to the right.

Q36. Which of the following is NOT a characteristic of the normal distribution?

A. The total area under the curve is 1.0.

B. The curve is symmetric about the mean.
C. The value of the mean is always greater than the value of the standard deviation.
D. The two tails of the curve extend indefinitely.

Questions 37 to 40 are based on the following information:

A university professor claims that on average, university students spend 30 hours on study
per week. The study time is known to be normally distributed with a standard deviation of 2
hours.

Q37. What is the probability that a randomly selected student will study more than 32.5 hours
per week?

A. 0.0125
B. 0.1056
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 11

C. 0.8944
D. 0.9875

Q38. What is the probability that a randomly selected student will study at most 29 hours
per week?

A. 0.3085
B. 0.4013
C. 0.5000
D. 0.6915

What is the probability that a randomly selected student will study between 26 and 34
Q39.
hours per week?

A. 0.0228
B. 0.9544
C. 0.9772
D. 1.0000

Q40. If 1% of all the university students study at least 𝛼 hours per week, find the value of 𝛼.

A. 35.15
B. 2.33
C. 25.35
D. 34.65

**END OF EXAMINATION PAPER**

STATISTICAL FORMULAE

Conditional Probability:

𝑃
𝑃 (𝐴 | 𝐵)

Addition Rule:
UFM QBM101 – Business Statistics (Quiz SAMPLE) Page 12

Multiplication Rule:

𝑃 (𝐵 | 𝐴)

Mean and Standard Deviation of Discrete Probability Distribution:

µ = 𝛴 𝑥 𝑃(𝑥)

𝜎 = √Σ 𝑥 2 P(x) − µ2

Binomial Probability Distribution:

𝑃(𝑋 = 𝑥) = 𝑛𝐶𝑥𝑝𝑥𝑞(𝑛−𝑥)

Poisson Probability Distribution:

𝑒−𝜆𝜆𝑥
𝑃(𝑋 = 𝑥) =
𝑥!

Normal Probability Distribution:

𝑥−𝜇
𝑧=
𝜎