IB9BA0 2018 exam model answers

Exam Question 1

Max earned a score of 40 on a test. The mean test score was 60 with a standard
deviation of 10. What proportion of students had a higher score than Max? (Assume
that test scores are normally distributed)

Answer: 0.97725

Solution
Given that test scores are normally distributed, the solution involves three steps.

First, we transform the test score into a z-score, using the z-score transformation
equation.

z = (X - μ) / σ = (40 - 60) / 10 = -2

Then, using the standardised normal distribution table, we find the cumulative
probability associated with the z-score. In this case, we find P(z > -2.0) = 1-P(z<-
2.0)=1-P(z>2.0)=1-0.02275=0.97725
Exam Question 2
A exam consists of seven multiple choice questions with four choices for each
question. As an experiment, you guess on each and every answer without even
reading the questions.

What is the probability of getting exactly four questions correct on this test (round to
4 decimal places)?

Answer: 0.0577

Solution
n=7
r=4
n–r=3
p = 0.25 = probability of guessing the correct answer on a question
q = 1 - p = 0.75 = probability of not guessing the correct answer on a question

7
𝑃(𝑔𝑢𝑒𝑠𝑠𝑖𝑛𝑔 4 𝑟𝑖𝑔ℎ𝑡) = 0 2 (0.25)! (0.75)" = 0.0577
4
Exam Question 3
At the Warwick Foods factory, cookies are tested for crispness with the following
results:
-For cookies that are really crispy, the test says "Yes" 80% of the time;
-For cookies that are not crispy, the test says "Yes" 10% of the time

If 80% of all cookies are crispy, and for a randomly selected cookie the Warwick
Food's test says "Yes", what are the chances that the cookie really is crispy (round to
4 decimal places)?

Answer: 0.9697

Crispy Crispy 80% 64%

80% Not 20% 16%
crispy
Not crispy Crispy 10% 2%
20% Not 90% 18%
crispy

64%/(64%+2%)=0.9697
Exam Question 4
100 students were randomly selected for a national survey. Among survey
participants, the mean grade-point average (GPA) was 3.5, and the standard deviation
was 1.5. What is the margin of error, assuming an approximate 99% confidence level
(critical value equals to 3)?

Answer: 0.45

Solution
To compute the margin of error, we need to find the critical value and the standard
error of the mean. Since the question suggests that we use an approximate 99%
confidence interval, we can use a critical value of 3.

Next, we find the standard error of the mean, using the following equation:

SE = s / sqrt( n ) = 1.5 / sqrt( 100 ) = 1.5 / 10 = 0.15

And finally, we compute the margin of error (ME).

ME = Critical value x Standard error = 3 * 0.15 = 0.45

Exam Question 5

What is the probability that the sum of two die will be greater than 10 (>10), given
that the first die is 5 (round to 4 decimal places)?

Answer: 0.1667

Solution
Given that the first die is 5, there only one scenario to get a sum of two die to be
greater than 10, i.e., (5,6) so the probability is 1/6, i.e., 0.1667
Exam Question 6

A box contains 3 yellow pencils and 7 green pencils. Two pencils are chosen at
random from the box without replacement.

What is the probability they are different colours (round to 4 decimal places)?

Answer: 0.4667

Solution

P(getting a yellow then a green)+ P(getting a green then a yellow)

=3/10 * 7/9 + 7/10 * 3/9
=42/90
=0.4667
Exam Question 7

What is the median for the following set of numbers?

13, 18, 6, 20, 25, 11, 9, 18, 3, 30,16, 44, 55

answer: 18

Solution

First, sort the numbers:

3, 6, 9, 11, 13, 16, 18, 18, 20, 25, 30, 44, 55

the midpoint is 18
Exam Question 8

A machine produces electrical components. 99.7% of the components have lengths

between 1.24 cm and 1.96 cm. Assuming this data is normally distributed, what is the
standard deviation (S.D.)?

Answer: 0.12

Solution

99.7% is 3 standard deviations either side of the mean (a total of 6 standard

deviations) so:
1 standard deviation = (1.96 cm - 1.24 cm)/6 = 0.12 cm
Exam Question 9-10

The following data shows the yearly growth rate for three firms. Based on this data, test the
null hypothesis that the average growth rate is equal for all firms, using an Anova and a
significance level of 0.05.

Firm 1 Firm 2 Firm 3

1 4 6
2 3 3
2 5 4

9. What is the critical value that the F-ratio should be compared with (round to 2
decimal places)?

Answer: 5.14

10. What is the F-ratio (round to 1 decimal places)?

Answer: 5.2

Sum of all obs (Total = T) = 30, Sum of all squared Observations (Sˆ2) = 120.

Based on the table we have:

SS_Between = 12.67, SS_Tot = 20, SS-Within = 7.33

MS_Between = 12.67/(3-1) = 6.33

MS_Within = 7.33/(9-3) = 1.22

F = 6.33/ 1.22 = 5.2

Critical value (F value for signif. 0.05, df_between = 2, df_within = 6) is 5.14.
Because F > Critical Value, the null hypothesis is rejected.
Exam Question 11

11. Given the data below, test the null hypothesis that the averages are equal for all
groups, using an Anova and a significance level of 0.05. What is the F-ratio (round to
1 decimal places)?

Group 1 Group 2 Group 3 Group 4

3 3 5 7
1 4 7 5

Answer: 4.8
Exam Question 12-14

The following data shows the sales for firms using two different quality management systems
(intuitive and statistical) and two different incentive systems (fixed and variable). All answers
round to the nearest integer.

Quality Management

Intuitive Statistical
Fixed 1 12
Incentive 3 14
system 2 13
Variable 3 5
2 6
4 7

12. Using a two factor Anova, what is the F-ratio for the main effect of the Quality
Management approach?

Answer: 147

13. Using a two factor Anova, what is the F-ratio for the main effect of the incentive system?

Answer: 27

14. Using a two factor Anova, what is the F-ratio for the interaction effect?

Answer: 48
In below “a” means quality management factor and “b” means incentive system.
Exam Question 15-19

The following table shows profitability (x) and investments (y) for five firms.

Firm x y
1 6 5
2 2 3
3 5 4
4 3 1
5 7 3

15. What is the correlation coefficient (r) based on this data (round to 1 decimal places).

Answer: 0.5

16. Assuming the regression line is Y = a + bX, what is the value of a (round to 1 decimal
places)?

Answer: 1.5

17. Assuming the regression line is Y = a + bX, what is the value of b (round to 1 decimal
places)?

Answer: 0.4

18. What is the value of R-squared (round to 1 decimal places)?

Answer: 0.3

19. Test the null hypothesis that the slope in the regression line is different from zero, using a
significance level of 0.05 (two-sided test). What is the value of the test-statistic (the ‘w-value’
or sometimes called ‘t-statistic’)?

Answer: 1.1
Exam Question 20
The following data shows how the number of different type of students with different
backgrounds who have received three different grades in their statistics course.

Grade

Distinction Pass Fail

Background of Economics 41 22 33
Student Math 33 21 22
Accounting 65 34 12

Test the null-hypothesis that there is no association between the student background and
grade using a Chi-square test. What is the test statistic (the chi-square sum, the uncorrected
one, not the Yates corrected chi-square)? (Round to the nearest integer)

Answer: a) 18