NATIONAL INSTITUTE OF BUSINESS MANAGEMENT

Advanced Diploma in Logistics Management

Statistical Modeling- Model Paper
Date 27/06/2023 Time Allowed: 2 hrs
Answer Four questions only. All questions carry equal marks.
Calculators are permitted used, but you are not allowed to keep formulas in the memory

Question 01 (25 marks)

In a study, data were collected about the following variables.
X1 - Gender (Male/Female)
X2 - Number of cigarettes smoked per day
X3 - Fasting blood sugar level (mg/dL)
X4 - Total cholesterol level (mg/dL)
Summary statistics and histograms for the “total cholesterol level” are given below.

Summary Measure Statistic

Mean 237.9
Std. Deviation 38.58
Minimum 155
Maximum 351
1st Quartile 211
2nd Quartile 230
3rd Quartile 267
Skewness 1.670
Kurtosis 0.625

Using the above information;

a) For each of the above variables, determine whether the variable is categorical (qualitative) or
numerical (quantitative). If the variable is numerical, determine whether the variable is
discrete or continuous. In addition, determine the level of measurement (nominal, ordinal)
for each variable. (Copy and complete the following form of a table in the given answer
sheet.)
(08 marks)
Variable Numerical Categorical Discrete Continuous Nominal Ordinal
X1
X2 b)
X3 b)

X4 b)
b)
Provide a suitable chart to present the fowling variables. (04 marks)
i. Gender
ii. Number of cigarettes smoked per day
iii. Gender vs Total cholesterol level
iv. Fasting blood sugar level vs Total cholesterol level
c) Interpret the histogram. (02 marks)
d) Provide the values of two “measures of center” and two “measures of dispersion” of Total
cholesterol level. (04 marks)
e) Give the “Five Number Summary” of the Total cholesterol level. (02 marks)

Question 02 (20 marks)

The distribution of the lifetime of a certain brand of external hard disk follows a normal
distribution with a mean of 72 months and a variance of 16 months.
Using the empirical rule in statistics, find the percentage of lifetime of external hard disks (12
marks)
i. less than 64 months
ii. greater than 76 months
iii. less than 80 months
iv. between 64 months and 76 months
 b) 97.5% of lifetimes of the external hard disk are less than how many months? (08 marks)

Question 03 (20 marks)

The lifetime of mobile phones has been found to be normally distributed with a mean of 72
months and a standard deviation of 4 months.
a) Using a standard normal distribution table, Calculate the probability that the lifetime of a
mobile phone is (12 marks)
i. more than 76 months
ii. less than 74 months
iii. Between 71 months and 78 months
b) 80% of lifetimes of mobile phones are less than how many months? (04 marks)
c) Between what two values (in months) symmetrically distributed around the population
mean will 80% of the lifetimes of mobile phones fall? (04 marks)

Question 04 (20 marks)

A multiple linear regression model is fitted using Excel software to regress the relationship
between final exam marks with three consecutive exams conducted during the semester. The
regression outputs are given below.

Regression output
Regression Statistics
Multiple R 0.995
R Square 0.990
Adjusted R
Square 0.988
Standard Error 2.614
Observations 25

ANOVA
Significan
df SS MS F ce F
13731.51 4577.171 670.086
Regression 3 48 6 0 0.0000
Residual 21 143.4452 6.8307
Total 24 13874.96

Coefficien Standard t Stat P-value Lower Upp

 er
ts Error 95% 95%
3.49
Intercept -4.336 3.764 -1.152 0.002 -12.164 2
0.60
EXAM1 0.356 0.121 2.932 0.008 0.103 8
0.75
EXAM2 0.543 0.101 5.379 0.000 0.333 2
1.38
EXAM3 1.167 0.103 11.333 0.000 0.953 2

i. Interpret the regression coefficients. (08 marks)

ii. Briefly explain the R square value. (04 marks)
iii. Write down the final model. (04 marks)
iv. If a student got a 60mark for each of the three exams, what is the predicted mark of his final
exam?
(04 marks)

Question Number – 05(20 marks)

1) The data shown here represent the number of hours that 12 part-time employees at a toy store
worked during the weeks before and after Christmas. (15 marks)
Before 38 16 18 24 12 30 35 32 31 30 24 35
After 26 15 12 18 24 32 14 18 16 18 22 12
Construct two boxplots and compare the distributions.

2) A data has the first quartile of 42 and the third quartile of 50. Compute the lower and upper limits.
Should a data value of 65 be considered an outlier? (05 marks)

Question Number – 06(20 marks)

The operations manager of a plant that manufactures tires wants to compare the actual inner diameter of
two grades of tires, each of which is expected to be 575 millimeters. A sample of five tires of each grade
was selected, and the results representing the inner diameters of the tires, ranked from smallest to largest,
are as follows:

Grade X Grade Y

568 570 575 578 584 573 574 575 577 578

a. For each of the two grades of tires, compute the mean, median, and standard deviation. (10 marks)

b. Which grade of tire is providing better quality? Explain. (05 marks)

c. What would be the effect on your answers in (a) and (b) if the last value for grade Y were 588 instead
of 578? Explain. (05 marks)