INTRODUCTION TO BUSINESS

STATISTICS
(BCPC 112)

QUESTIONS COMPILED BY:

BOANSI OKYERE NORBERT (STUDY WITH KAY)

0245922559
1.
a. Define Statistics. Explain its types, and importance to trade, commerce and business.
b. “Statistics is all-pervading”. Elucidate his statement.
c. Write a note on the scope and limitations of statistics.
2.
a. Define skewness and dispersion
b. Define kurtosis and moments.
c. Why is standard deviation the most widely used measure of dispersion?
3. The following data give the savings bank accounts balances of nine sample households selected
in a survey. The figures are in rupees.
745 2,000 1,500 68,000 461 549 3,750 1,800 4,795
Find the mean and the median for these data.
4. Given the following data,
Price Quantity sold
18 8
20 6
25 5
27 2
28 2
32 1
a. Calculate the Pearson's coefficient of correlation and comment on your results.
b. Determine the coefficient of determination
c. Find the ordinary least square regression equation.
d. Predict the number of jackets to be sold if price is GHS40
5.
a. State four properties of the normal distribution.
b. The weekly wages of the employees of the Ghana Cocoboard are normally distributed
about a mean of GH 145.00 with a standard deviation of GH 10.00. Find the probability
of an employee having a weekly wage:
i. Between GH 150.00 and GH 160.00
ii. Less than GH 130.00
 iii. More than GH 162.00
6.
a. There are 100 students in a first-year university in take. 36 of them are male and are
studying Accounting, 9 are male and not studying Accounting. 42 are female and
studying Accounting, 13 are female and not studying Accounting.
i. What is the probability that a student selected at random is studying
Accounting and he is male?
ii. What is the probability that a student is a male given that he is studying
Accounting?
b. The Ghana Standard board (GSB) received 10 bulbs for test. 4 out of the 10 were
defective. Suppose GSB Selected 4 bulbs randomly for testing. What will be the
probability that all will be faulty? (Assume sampling with replacement).
7.
a. Given the following distribution
Amount Ghana Cedis Male
10- 12 5
12- 14 8
14- 16 7
16- 18 4
18 -20 6
i. Estimate the standard deviation.
ii. Estimate the median.
iii. Calculate the coefficient of skewness and comment on your results
b. Differentiate descriptive inferential statistics
8.
a. A shopping mall has a food hall with 3 fast food outlets: X, Y, and Z. A survey of
transaction in these outlets produced the following results:
Customer X Y Z TOTAL
profile
Single 87 189 15 291
Couple 11 5 62 78
 Family 4 12 115 131
Total 102 206 192 500
What is the probability that a customer buys from outlet Y?
What is the probability that a transaction in the food hall is at outlet Z or
involves a couple?
b. An assembly line produced 3, 10, 5 and 2 defective products on 4 successive runs.
Calculate the mean deviation.
9. The data below shows the scores obtained by a sample of students in a Business Statistics
examination.

60 47 82 95 88 72 67 66 68 98 90 77 86 58 64 95 74 72
88 74 77 39 90 63 68 97 70 64 70 70 58 78 89 44 55 85
82 83 72 77 72 86 50 94 92 80 91 75 76 78
a. Using the class intervals 35 — 39, 40 -44, 45 -49, 50 - 54, 55 - 59, 60 - 64, 65 -69, 70 —
74, . . .. etc. Construct a grouped frequency distribution table for the data showing the class
boundaries, class midpoints, relative frequencies, and cumulative frequencies.
b. Estimate the mean score obtained by the students.
c. Estimate the modal score obtained by the students.
d. Estimate the median score obtained by the students.
e. Estimate the standard deviation and variance of the score obtained by the students.
f. Comment on the nature of the distribution.

10. A study was conducted by a retail merchant to determine the relationship between weekly
advertising expenditure and sales. The following data were recorded.
Advertising cost 40 20 25 20 30 50 40 20 50 40 25 50
($)

Sales ($) 385 400 395 365 475 440 490 420 560 525 480 510
 a. Plot a scatter diagram
b. Find the equation of the regression line to predict weekly sales from advertising
expenditures.
c. Estimate the weekly expenditure when advertising costs is $35.
11. In a contest, Kpakpo, Osei and Anane are asked to solve a problem, the respective probabilities
1 1 1
that they solve the are 6, 8 and 3. Calculate the probability that:

a. None of them solves the problem.

b. At least one of them solves the problem.
c. Only one of them solves the problem.
12.
a. Mention five (5) characteristics of the standard normal distribution.
b. The horizontal axis of the standard normal curve is usually labelled z. Find the following
areas under the standard normal curve.
i. The area to the left of z = 1.25
ii. The area to the right of z = 1.25
iii. Between z = -1.02 and z = 0.92
13.
a. Clearly distinguish between quantitative and qualitative variables.
b. Group the following examples under quantitative and qualitative variables: age, colour,
height, race, gender, temperature, educational degrees, annual income, number of bags of
rice, grades, religion, length, size, currency exchange rate, and speed.
c. The following numbers are arranged in order of size: t - 2, 4, t + 2, 2t + 1 and 8. If the
median is equal to the mean, find the value of t.
d. The set of numbers x 2, 3, 3x - 4, 7, 9, where x is a positive integer, has a mean 5. Find the
value(s) of x.
14. The time taken by new employees at a company to fully learn a computer package is normally
distributed with a mean of 48 hours and a standard deviation of 5 hours. If x hours is the time
for an employee to learn the packages, find the following probabilities.
a. X more than 56 hours
b. X less than 40 hours
c. Between 36 and 52 hours
 d. Find the time above which only 2% of the new employee take to learn the computer
package.
e. Find time below which only 10% of the new employee take to learn this computer package.
15. The following table shows the absence records of 2,000 employees in a certain company during
one year. The employees are divided into three categories according to method of payment.
Days Absent

Payment 0 1-3 4 or more

Hourly 120 240 440

Weekly 200 220 180

Monthly 300 160 140

An employee is chosen at random. What is the probability that:

a. The employee is paid hourly
b. The employee has no recorded absences
c. The employee has 3 or less absences
d. The employee is paid monthly and had 4 or more absences
e. The employee is paid hourly or weekly
f. Given that an employee is paid weekly, what is the probability that they had 4 or more days
absent in the year
g. Given that an employee has 1-3 days absences, what is the probability they were paid
monthly.
16. The following are the ranks obtained by 10 students in two subjects, Statistics and
Mathematics. To what extent is the knowledge of the students in the two subjects related?
Statistics 1 2 3 4 5 6 7 8 9 10

Mathematics 2 4 1 5 3 9 7 10 6 8
17. The following figures relate to years of service and income in hundreds of Ghana Cedis of the
employees of an organization.
Length of 11 7 9 5 8 6 10
service(years)
Income 7 5 3 2 6 4 8
(GHS’00)
a. Draw a scatter diagram for the above data.
b. Calculate the (least square) regression line of income on length of service.
c. Draw the regression line on the scatter diagram.
d. Find the initial start for a person applying for a job after having served in another factory
for a period of 12 years in a similar capacity.
18. The following are weights of a sample of 30 people who are considered obese in a certain
hospital in Accra.
105 85 72 59 130 120 95 83 78 91

64 106 86 87 78 108 145 102 86 74

103 94 63 73 89 75 88 107 101 72

a. Make a frequency distribution of the above data using a class interval of 10

b. Calculate the
i. Mean
ii. Median
iii. Range
iv. Standard deviation.
c. Calculate an appropriate coefficient of skewness and hence describe the distribution of
their monthly expenditure on health.
19.
a. What is the difference between correlation and regression?
b. The data below relates to six (6) selected Car Rental Companies operating in two Regions.
Company Cars – X (in 100s) Income – Y (GHS’millions)

A 63.0 7.0
 B 29.0 3.9

C 20.8 2.1

D 19.1 2.8

E 13.4 1.4

F 8.5 1.5

i. Compute the Product Moment Correlation Coefficient for the data.

ii. Estimate the linear regression equation of the above data.
iii. Interpret the intercept and slope of the estimated regression equation in (ii)
iv. Estimate the income if the number of cars is 100.
v. Calculate the coefficient of determination and interpret the result.
20.
a. Given that P(A)=0.3; P(B)=0.5, find the probability of A or B or both occurring if;
i. A and B are mutually exclusive
ii. A and B are independents events
b. The customer accounts of a certain departmental store have an average balance of
GHS1,200 and a standard deviation of GHS400. Assuming that the account balances are
normally distributed.
i. What proportion of accounts is over GHS1,500?
ii. What proportion of account is between GHS1,000 and GHS1,500?
iii. What proportion of accounts is between GH600 and GHS900?
c. A box contains 10 items, of which 4 are defective. Three items are drawn at random from
the box one after the other. Assuming sampling without replacement, find the probability
that all the three items drawn are defective.
21. Clearly distinguish between the following:
a. Primary and secondary data
b. Quantitative and qualitative data
c. Time series and Cross-section data
d. Convenience and judgement sampling
e. Mutually exclusive events and mutually inclusive events.
22.
a. Bags of smokeless fuel are labeled as weighing 100kg, but actual wights are normally
distributed with a mean of 102kg and a standard deviation of 4kg.
i. What proportion of bags will weigh more than 106kg?
ii. What proportion of bags will weigh less than 95kg?
b. The following are arranged in order of: x-2, 4, x+2, 2x+1, and 8. If the mean equals the
median, find the value of x.
23. The following sets of data represent the distributions of house prices in Greater Accra region
and Ashanti region. Random samples of 100 houses were selected in each region.
Price Range (GHS’000) No. of houses in Greater No. of houses in Ashanti
Accra region region.

80 – 99 5 3

100 – 119 9 5

120 – 139 20 6

140 – 159 35 18

160 – 179 10 30

180 – 199 9 23

200 – 219 8 10

220 – 239 4 5

a. Calculate for both distribution the;

i. Mean
ii. Median
iii. Standard deviation
24. Find the Pearsonian correlation coefficient from the following series of marks obtained by 10
students in a class test in mathematics (X) and in Statistics (Y):
X : 45 70 65 30 90 40 50 75 85 60
Y : 35 90 70 40 95 40 60 80 80 50
25. Calculate the rank coefficient of correlation from the following data:
X: 75 88 95 70 60 80 81 50
Y: 120 134 150 115 110 140 142 100
26. Write short notes on the following
a. Positive and negative correlation
b. Linear and non-linear correlation
c. Spearman’s rank correlation coefficient
d. Regression coefficients
27. The following table shows the number of motor registrations in a certain territory for a term of
5 years and the sale of motor tyres by a firm in that territory for the same period.
Year Motor Registrations No. of tyres sold

1 600 1,250

2 630 1,100

3 720 1,300

4 750 1,350

5 800 1,500

a. Find the regression equation to estimate the sale of tyres when the motor registration is
known.
b. Estimate sale of tyres when registration is 850.
28. A box contains 10 balls out of which 2 are green, 5 are red and 3 are black. If two balls are
drawn at random, one after the other without replacement, from the box. Find the probabilities
that:
a. both the balls are of green color
b. both the balls are of black color
c. both the balls are of red color
d. the first ball is red and the second one is black
e. the first ball is green and the second one is red
29. The weekly wage of 2000 workmen are normally distribution with mean wage of Rs 70 and
wage standard deviation of Rs 5. Estimate the number of workers whose weekly wages are 331
a. between Rs 70 and Rs 71
b. between Rs 69 and Rs 73
c. more than Rs 72
d. less than Rs 65

30.

a. Describe the various methods of drawing a sample.

b. Describe the importance of sampling. Critically examine the merits of probability sampling
and non-probability sampling methods