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MODULE NAME: MODULE CODE:

QUANTITATIVE TECHNIQUES QUAT6221
QUANTITATIVE TECHNIQUES QUAT6221d
QUANTITATIVE TECHNIQUES QUAT6221w
BUSINESS STATISTICS BSTA6212

ASSESSMENT TYPE: TAKE-HOME ASSESSMENT (PAPER ONLY)

TOTAL MARK ALLOCATION: 120 MARKS
TOTAL TIME: This assessment should take you 2 hours to complete, however
you have 21 hours (midnight to 9pm on the same day) to submit.
This additional time has been allocated to allow for the
download, completion and upload of your submission.
By submitting this assessment, you acknowledge that you have read and understood all the rules
as per the terms in the registration contract, in particular the assignment and assessment rules in
The IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in
the Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the
student portal.

INSTRUCTIONS:
1. Please adhere to all instructions. These instructions are different from what is normally
present, so take time to go through these carefully.
2. Independent work is required. Students are not allowed to work together on this
assessment. Any contraventions of this will be handled as per disciplinary procedures in The
IIE policy.
3. No material may be copied from original sources, even if referenced correctly, unless it is
a direct quote indicated with quotation marks.
4. All work must be adequately and correctly referenced.
5. You should paraphrase (use your own words) the concepts that you are referencing, rather
than quoting directly.
6. Marks will be awarded for the quality of your paraphrasing.
7. This is an open-book assessment.
8. Assessments must be typed unless otherwise specified.
9. Ensure that you save a copy of your responses.
9.1 Complete your responses in a Word document.
9.2 The document name must be your Name.Student number.QUAT6221.
9.3 Once you have completed the assessment, upload your document under the
submission link in the correct module in Learn.

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Additional instructions:
• Calculators are allowed.
• For multiple-choice questions, give only one response per question. The marker will ignore
any question with more than one answer, unless otherwise stated. You should, therefore, be
sure of your answer before committing it to paper.
• Answer ALL Questions.
• Show all calculations, where applicable (marks may be awarded for this).

If you are using a Word Document in specialised numeracy modules:

o Please see the Word document included as part of this assessment.
o Tables have been created for you to complete.
o Use the following to reflect your calculations:
o Multiple x – small letter x or *.
o Division / forward slash.
o Addition and subtraction + and -.
o Square roots and equations – using the function insert - equation.
o Tables – using the function insert – table.
o Working with tables – use merge and split cell functions through right click function.
o Fitting tables to pages – Autofit to window/content through right click function.
o Layout of table – Section breaks and landscape orientation through layout – breaks and
layout orientation in the ribbon.
o If you are not familiar with all the functions in word it is recommended that you rather do a
hardcopy if possible.
o The document name must be your Name.Student number.QUAT6221.
o Once you have completed the assessment, upload your document under the submission link
in the correct module in Learn.

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Question 1 (Marks: 20)

Q.1.1 MULTIPLE CHOICE QUESTIONS: Select one response for each question. In the
answer paper, write down the relevant question number, and the number of the
response that you believe is correct.

Q.1.1.1 The difference in weight between a father and his oldest child is an (2)
example of:
(1) Quantitative, continuous data
(2) Qualitative, discrete data
(3) Quantitative, discrete data
(4) Qualitative, interval-scaled data

Q.1.1.2 The random variable “sweater size” (Small, Medium, Large, etc.) (2)
generates:
(1) Interval-scaled data
(2) Nominal-scaled data
(3) Ratio-scaled data
(4) Ordinal-scaled data

Q.1.1.3 Data obtained for the first time, specifically for the purpose at (2)
hand, is referred to as:
(1) Internal data
(2) Secondary data
(3) External data
(4) Primary data

Q.1.1.4 The number of cars in a car park is an example of: (2)

(1) Qualitative data
(2) Continuous data
(3) Discrete data
(4) Ordinal data

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Q.1.1.5 The strongest form of data with regard to statistical analysis is: (2)
(1) Interval-scaled data
(2) Ratio-scaled data
(3) Nominal-scaled data
(4) Ordinal-scaled data

Q.1.2 Match the definition in column X with the correct term in column Y. Two marks (10)
will be awarded for each correct answer.

COLUMN X COLUMN Y
Q.1.2.1 A subset of data values drawn from a population A. Parameter
Q.1.2.2 A measure that describes a characteristic of a B. Random variable
population
Q.1.2.3 The actual values or outcomes recorded on a C. Data enrichment
random variable
Q.1.2.4 The transformation of data into more D. Data
meaningful measures.
Q.1.2.5 The attribute of interest on which data is E. Sample
collected and analysed

Question 2 (Marks: 15)

The following data set indicates the number of people per day who visited a website over a
random sample of eleven days.

559 566 574 579 579 579 581 583 584 590 592

Q.2.1 Calculate the following, using the appropriate formulae and/or methods:

Q.2.1.1 The mean (compute to three decimal places). Interpret your answer. (2)
Q.2.1.2 The first quartile. Interpret your answer. (3)
Q.2.1.3 The variance. (The relevant formula must be used. No marks will be (3)
awarded if the answer is simply obtained directly from a calculator).

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Q.2.1.4 What is the coefficient of variation for this data set? (2)

Q.2.2 The following data set indicates the number of customers per day who utilised a (5)
local ATM, over a random sample of twenty days:

23 23 24 38 32
42 42 28 37 36
35 36 33 40 33
27 34 39 35 34

Construct a grouped frequency distribution table for this data set. Your table should
include columns indicating the frequency count values (f) and the percentage
frequencies (% f) for each class. The total for each of the latter columns should also
be included. Use the classes 20 -< 25; 25 -< 30; and so on.

IMPORTANT: For all probability questions below, give final probability answers as
percentages to two decimal places, unless otherwise indicated.

Question 3 (Marks: 15)

Q.3.1 The following contingency table gives the results of a sample survey of South
African male & female respondents with regard to their regular mode of
transport:

REGULAR MODE OF TRANSPORT

Car Bus Taxi TOTAL
No. of Females 50 100 10 160
No. of Males 75 95 70 240
TOTAL 125 195 80 400

Q.3.1.1 What is the probability of randomly selecting a male respondent from (2)
the sample?
Q.3.1.2 What is the probability of randomly selecting a respondent from the (2)
sample who travels by taxi?
Q.3.1.3 What is the probability of randomly selecting a respondent who is female (2)
and uses a taxi?

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Q.3.1.4 What is the probability of selecting a respondent who is male, given that (3)
they travel by bus?
Q.3.1.5 What is the probability of selecting a respondent who is female or who (4)
travels by taxi?
Q.3.1.6 What is the probability of randomly selecting a respondent from the (2)
sample who does not travel by taxi?

Question 4 (Marks: 15)

Q.4.1 It has been found that 2 out of every 10 people who visit a retail website make (5)
a purchase worth R1 000 or more. If we randomly select a sample of 9 visitors
to the website, what is the probability that no more than three of the visitors
will make a purchase worth R1 000 or more? Interpret your answer.

Q.4.2 The score obtained on a learner’s driving test is normally distributed, with an
average score (μ) of 67 and a standard deviation (σ) of 2.5. What is the
probability that a randomly selected person will:
Q.4.2.1 Obtain a score between 68 and 70? Interpret your answer. (5)
Q.4.2.2 Obtain a score between 65 and 71? Interpret your answer. (5)

Question 5 (Marks: 10)

Q.5.1 Class Act Pty has found that 21% of its policy holders are below the age of 30.
A sample of 165 customers is randomly selected. Assuming normal
distribution:
Q.5.1.1 Determine the standard error for this sample. (3)
Q.5.1.2 What is the probability that more than 20.50% of the customers in (7)
the sample are below the age of 30? Interpret your answer.

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Question 6 (Marks: 20)

Q.6.1 A national publishing house claims that 37% of all weekly magazine readers (8)
in South Africa read their publication. Test this claim at the 1% significance
level, if a survey found that 140 out of a random sample of 400 magazine
readers said that they read the relevant publication.

Q.6.2 The CEO of a large financial institution claims that, on average, their clients (12)
invest more than R45 000 per year in a particular portfolio. Test this claim at
the 5% significance level if it was found that a sample of 21 clients invested
an average of R44 500 in the portfolio over the last year, with a standard
deviation of R5 500.

Question 7 (Marks: 10)

The following table indicates the ages of a sample of female employees of People Plus Pty, and
the corresponding monthly income of each employee (in thousands of Rands).

Age In Years (x) Monthly Income (R000s) (y)

40 43
49 49
32 36
27 31
38 41
46 42

Q.7.1 By completing the table given below, and then applying the relevant formulae, (8)
determine the linear regression function for this bivariate data set.

x y x2 xy

TOTAL

Q.7.2 If a female employee is 39 years of age, estimate her monthly income. (2)

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Question 8 (Marks: 15)

The following table indicates the unit prices (in Rands) and quantities of three goods held in the
national warehouse of a DIY (“do it yourself”) store for the years 2020 and 2021.

2020 2021
Item Unit Price (p0) Quantity (q0)) Unit Price (p1) Quantity (q1)
Mineral spirits R17.70 30 R20.70 45
10mm spanner R37.00 60 R49.00 50
25mm brush R42.00 30 R48.00 40

Q.8.1 Using 2020 as the base year, compute the price relatives in 2021 for mineral spirits (8)
and the 10mm spanner. Interpret your answers.

Q.8.2 Again, using 2020 as the base year, compute the Paasche price index for all of the (7)
items for 2021. Interpret your answer.

END OF PAPER

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FORMULAE SHEET: Quantitative Techniques and Business Statistics

(QUAT6221 and BSTA6212)

1. Measures Of Central Tendency

∑ 𝑥 ∑ 𝑓𝑥
𝑥 = 𝑥 =
𝑛 𝑛

𝑛 𝑐(𝑓 − 𝑓 )
𝑐 − 𝑓(<) 𝑀 =𝑂 +
𝑀 =𝑂 + 2
2𝑓 − 𝑓 −𝑓
𝑓

2. Measures Of Dispersion

R=𝑥 − 𝑥

R = upper limit of highest class – lower limit of lowest class

∑ 𝑥 − 𝑛 𝑥̅ ∑ 𝑓𝑥 − 𝑛 𝑥̅
𝑠 = 𝑠 =
𝑛−1 𝑛−1

𝑠
𝑠= 𝑠 𝐶𝑉 = × 100%
𝑥

Interquartile range = Q3 - Q1 Quartile Deviation =

𝑛 ∑(𝑥 − 𝑥 ) 3(Mean − Median)

𝑆𝑘 = 𝑆𝑘 =
(𝑛 − 1)(𝑛 − 2)𝑠 Standard deviation

𝑛 3𝑛
𝑐 − 𝑓(<) 𝑐 − 𝑓(<)
𝑄 =𝑂 + 4 4
𝑄 =𝑂 +
𝑓 𝑓

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P = lp + (Up – lp)((p/100)n – f(<))

fp
Where:
lp = lower class boundary of the interval containing the pth percentile
Up = upper class boundary of the interval containing the pth percentile
f(<) = cumulative frequency of the class interval before the interval containing the pth percentile
fp = frequency of the class interval containing the pth percentile

3. Probability Distributions

𝑃(𝑟) = 𝑛𝐶𝑟 × 𝑝 × 𝑞 , where 𝑞 = 1 − 𝑝 𝜇 = 𝑛𝑝 and 𝜎 = 𝑛𝑝𝑞

𝑒 𝑎 𝑒 𝜆 𝜇 = 𝜆 and 𝜎 = √𝜆
𝑃(𝑥) = or 𝑃(𝑥) =
𝑥! 𝑥!

4. Linear Regression And Correlation

𝑦 = 𝑏 + 𝑏 𝑥 or 𝑦 = 𝑎 + 𝑏𝑥

𝑛 ∑ 𝑥𝑦 − ∑ 𝑥 ∑ 𝑦 ∑𝑦 − 𝑏 ∑𝑥
𝑏 =𝑏= 𝑏 =𝑎=
𝑛 ∑ 𝑥 − (∑ 𝑥) 𝑛

𝑛 ∑ 𝑥𝑦 − ∑ 𝑥 ∑ 𝑦 𝑟 = (𝑟) × 100
𝑟=
𝑛 ∑ 𝑥 − (∑ 𝑥) 𝑛 ∑ 𝑦 − (∑ 𝑦)

5. Hypothesis Testing

𝑥̅ − 𝜇 𝑥̅ − 𝜇
𝑧= 𝑧 or 𝑡 =
𝜎/√𝑛 𝑠/√𝑛

𝑝−𝜋 (𝑓 −𝑓 )
𝑧= 𝜒 =
𝜋(1 − 𝜋) 𝑓
𝑛

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6. Index Numbers

𝑝
Price relative = × 100%
𝑝

∑(𝑝 𝑞 )
Laspeyres price index = × 100%
∑(𝑝 𝑞 )

∑( )
Paasche price index = ∑( )
× 100%

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