CULTY OF ung. = MBA NAGEMENT caren UDIES University of Kelaniya, Sri Lanka. Master of Business Administration Degree Examination UNIVERSITY OF KELANIYA Faculty of Commerce and Management Studies 2018/2019 Academic Year ~ Year I - Second Semester Business Statistics ~ MBA 52063 Sunday 02" August 2020 No of pages 11 Instructions to can 1, DoNOT open this paper until instructed by the supervisor. 2. You must NOT write in your answer booklet until instructed by the supervisor. 3. Time allowed - Three hours (03). 4, Number of questions eight (08), 5. Answer any five (05) questions. 6. Begin each answer on a separate page in the answer booklet. Submit all workings. 7. Required statistical tables and formulae sheet are provided. 8. You are responsible for the legibility of your handwriting. ee Sie oaQuestion 01 a) Explain what is meant by Statistics and how it can be used to improve business decision making. (05 Marks) b) Discuss the nature of ‘descriptive statistics’ and ‘inferential statistics’ and name at least two data analysis techniques used in each case, (04 Marks) ©) Foreach of the following examples of data, determine the scale of measurement: i) The heights of students at University of Kelaniya. ii) ‘The months in which there is high demand for electricity usage. iii) The final letter grades received by students in a statistics subject, iv) The number of kilometers driven annually by employees in company cars. (01 Mark x 4 = 04 Marks) 4) What is the purpose of drawing a stem and leaf diagram? (02 Marks) ©) What are the main five elements of inferential statistical problems? Explain. (05 Marks) (Total 20 Marks) Question 02 a) “Over the years, a lot of thought has been put into the science of the design of survey questions”, Briefly explain five questionnaire design principles. (05 Marks) b) What would be the issue if the target population’ differs from ‘sampled population’? (03 Marks) ©) Distinguish between ‘probability samples’ and ‘nonprobability samples” (02 Marks) 4) Differentiate between ‘sampling error’ and ‘non-sampling error’ and explain why ‘non- sampling error’ is more serious than ‘sampling error’. (05 Marks) ©) Select a stratified random sample (STRS) of size 4500 from the Sri Lankan population to analyze internet usage based on ‘age’ stratification. Subgroups and their proportions in the population is given below. Page 2 of 11SI (<15 years): 10% S2 (15-21 years) :20% S3 (22-30 years) : 25% S4 (31-50 years): 20% $5 (over 50 years) : 25% (03 Marks) f) Briefly explain the following sampling methods. i) Simple random sampling ii) Cluster sampling (02 Marks) (Total 20 Marks) Question 03 a) Explain with graphs how the mean compares to the median for a distribution as follows: i) Skewed to the left ii) Skewed to the right iii) Symmetric (06 Marks) b) “While shopping at the grocery store, are you more likely to buy a vice product (e.g., a candy bar) when pushing a shopping cart or when carrying a shopping basket?” ‘This ‘was the question of interest in a study published in the Journal of Marketing Research (December 2011). The researchers believe that when your arm is flexed (as when carrying a basket), you are more likely to choose a vice product than when your arm is extended (as when pushing a cart). To test this theory in a laboratory setting, the researchers recruited 22 consumers and asked each to push his or her hand against a table while being asked a series of shopping questions. Half of the consumers were told to put their arms in a flex position (similar to a shopping basket) and the other half were told to put their arms in an extended position (similar to a shopping cart), Participants were offered several choices between a vice and a virtue (e.g., a movie ticket vs. a shopping coupon, paying later with a larger amount vs. paying now), and a choice score (ona scale of 0 to 100) was determined for each. (Higher scores indicate a greater preference for vice options.) The average choice score for consumers with a flexed arm ‘was 59, while the average for consumers with an extended arm was 43. Page 3 of 11Suppose the standard deviations of the choice scores for the flexed arm and extended arm conditions are 4 and 2, respectively. Does this information support the researchers” theory? Explain, (07 Marks) Suppose the standard deviations of the choice scores for the flexed arm and extended arm conditions are 10 and 15, respectively. Does this information support the researchers’ theory? Explain, (07 Marks) (Total 20 Marks) Question 04 a) Explain relative frequency approach to assigning probability values for events, (02 Marks) b) Five people have applied for two vacancies, for the post of Manager or CEO to a particular company. All five people are suitably qualified for this post. How many different ways can these two posts be filled if the order of the selection does not matter? (02 Marks) ©) The workforce of a firm employing 200 peoples comprised of four groups, as male manual workers, male supervisors, female manual workers, and female supervisors as mentioned in the table below. ‘Male (M) Female (F) | Supervisors (S) 20 50 ‘Manual workers (W) 100 30 If a person is selected at random find: i) PS) i) PR) P(S and M) P(S and F) vy) (M/S) vi) PFS) (01 Mark x 6 = 6 Marks) 4) i) Explain in what situations you can apply poison distribution with an example. (02 Marks) Page 4 of 11‘A famous author found that in his recently published book shows that average number of errors on a page of the book is 1.4. What is the probability that a page will contain four errors? (02 Marks) What are the characteristics of a normal distribution? (02 Marks) ‘The times taken by a doctor to examine patients during consultations at a hospital have been found to be normally distributed with mean (11) of ten minutes and standard deviation of five minutes ‘What is the probability of a consultation requiring 20 minutes or more? (02 Marks) If 80 patients are examined in a day, how many will like, on average, between five and ten minutes each? (02 Marks) (Total 20 Marks) Question 05 ‘A researcher is interested in finding how price (X1) and expenditure in promotions (X2) affect the sales of chocolate bars (Y) that the company XYZ sells. Price, promotional expenditure and sales are measured in Rs. Data were collected from a sample of 34 customers during a period of one month, You are given the following Excel regression output. You are required to answer the questions based on this output. Page 5 of 11b) Regression Statistics Multiple R ORF RSquare 076 Adjusted R Square senee ‘Standard Error “87 Observations eee ANOVA of: $s Ms F Significance F Regression 2 © 39472730.77 — 7 neue Residual 31 12620946.67 ots Total 33___52093677.44 Coefficients Standard Error tStat P-value _Lower 95% Intercept 5837.52 628.15 venee wane aeene Price in cents (x1) 53.22 6.85 seven eens wees Promotion in_Rs_(X2) 3.61 0.69 sens eens cad Write down the estimated equation and interpret the estimated coefficients. Are the signs of the estimated coefficients consistent with your expectations? (05 Marks) ‘Test the significance of the individual coefficients at 5% level of significance (two- tail test) (05 Marks) Test the significance of the overall relationship at 5% level of significance (02 Marks) Construct 95% confidence intervals for the regression coefficients, (02 Marks) What proportion of the variation in sales is explained by the variations in the explanatory variables? (03 Marks) Calculate the adjusted R?, and interpret its meaning (03 Marks) (Total 20 Marks) Page 6 of 11Question 06 Suppose you work in the HR department of a large International Garment Factory, and you are currently working in the salary branch, Some argue that in your company, salaries of same level managers are different among women and men. You are interested in testing this argument, and you obtained salary and demographic data for a random sample of managers of this company. As an initial step of the study, the following descriptive statistics are obtained. ‘Tests of Normality a Shapiro-Wilk a) Whats the most appropriate statistical test that can be used for the above study? Justify your answer by giving reasons, (03 Marks) b) Write down a suitable question (research) for the scenario mentioned above. (03 Marks) ©) What would the null and alternative hypotheses be for this scenario? (03 Marks) 4) According to additional information, you believe that Men have a higher average salary than Women, How do your answers above part (II) and (III) change? (research question and hypotheses) (03 Marks) ©) Suppose, following are your statistical test outputs, Group Statistes Mean, 109125. 01 33 17612 17392.092| 3027.575 Page 7 of 11sseusSamples Test Tevene’s Test for Equality of Variances ‘test for Equality of Means 95% Confidence Interval of the Difference tailed) Lower | Upper Salary Equal variances 6.163] 71} 000] 3003.78] $355.04] 2326.13] 43681.44 assumed Equal variances not 6.404] 67.939] .000] 3303.78] 5153.76] 2719.43] 4328.13 assumed i) Whats your decision? Interpret your results. ii) Whats your conclusion? (08 Marks) (Total 20 Marks) Question 07 a) —_Anexercise coach interests to determine whether his three-month exercise program is effective or not. He collected a data sample of his students about their weight before and after participating in the program, He has decided to perform the paired-samples t- test to examine the effectiveness of the exercise program, i) What would be his suggested null and alternative hypotheses? (03 Marks) ii) To perform the paired-samples t-test, what are the assumptions he has to fulfill? (03 Marks) iii) He has obtained the following statistical test outputs. Page 8 of 11Paired Samples Staisties ee Eee 58.0244 ‘weight (Ke) weight (Kg) Paired Differences 7.04879) 759932 83920 ‘9596 Confidence Interval oF| sid, | Std. Bror the Dilference Deviation | Mean Pair After exeroise 1 programe weight (Kg) -Before 2.37805 1.98853, exercise programe weight (Ke) ‘What would be the decision? Interpret results, What would be the conclusion? (06 Marks) b) What are the differences’ between one way and two-way Analysis of Variance (ANOVA) Tests? (04 Marks) ©) Explain the main effect and interaction effect in two-way ANOVA by using an appropriate example. (04 Marks) (Total 20 Marks) Question 08 a) “Even though the parametric tests are generally more powerful and can test a wider range of alternative hypotheses, there number of parametric assumptions that should met for applying parametric statistical tests. However, there are situations in which assumptions for a parametric test are violated,” i) Briefly discuss the process of identifying right statistical test/s for your own research by stating key important criteria with relevant examples. (08 Marks) Page 9 of 11b) y 0) Discuss the reasons for using non-parametric tests instead of parametric tests by the researchers. (04 Marks) ‘The following SPSS database depicts the details about 125 employees of large-scale business organization. This includes Serial Number, Name of Employee, Employment Category (Laborers, Clerical Staff, and Managers) Socio Economic Status (Low, Moderate, and High) and Satisfaction Scores according to the satisfaction survey (out, of 100 scores). Serial] Name [Gender] Employee Socio Feonomic | Satisfaction | No. Category Status Scores 1 ‘Amali | Female Laborers Low 0 2 Bimal | Male | Clerical Staff Moderate 35 | 3” | Grishantht | Female |” Laborers: Low 33 4 Dinali_ | Female Managers igh 6 3 | Branga | Male Laborers Low 36 6 | Femando | Female Managers Moderate 7 7 | Gamage | Male Laborers Low 34 8 | Kumari | Female |” Clerical Staff High pie 9 | Lilanthit | Female Laborers High 35 10 | Milanga | Male ‘Managers ‘Moderate 31 125. | Yasanthi | Female Managers Moderate 8 ‘Ifthe Human Resource Manager of the company wants to test the relationship between the gender and the level of satisfaction, state the most suitable statistical test with the relevant assumptions. (03 Marks) HR of the company wanted to test whether there is a significant difference between male and female employees’ satisfaction as per the satisfaction survey. So the researcher decided to perform Mann Whitney U test through the SPSS software and the output is given below. Page 10 of 11