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Business Statistics II (STAT 211) 3rd Trimester 2018

This document contains instructions and questions for a business statistics exam. It includes 5 questions testing various statistical concepts: 1) Properties of the normal distribution, finding probabilities for a normal distribution, and estimating values from a normal distribution. 2) Hypothesis testing steps and applying a hypothesis test to compare means of two samples. 3) Uses of the chi-square test and applying it to test independence between income level and school type. 4) Assumptions of ANOVA and applying a two-way ANOVA to compare machine and employee productivity. 5) Properties of a good estimator and using sample information to choose a bulb manufacturer with a 5% risk level.

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256 views3 pages

Business Statistics II (STAT 211) 3rd Trimester 2018

This document contains instructions and questions for a business statistics exam. It includes 5 questions testing various statistical concepts: 1) Properties of the normal distribution, finding probabilities for a normal distribution, and estimating values from a normal distribution. 2) Hypothesis testing steps and applying a hypothesis test to compare means of two samples. 3) Uses of the chi-square test and applying it to test independence between income level and school type. 4) Assumptions of ANOVA and applying a two-way ANOVA to compare machine and employee productivity. 5) Properties of a good estimator and using sample information to choose a bulb manufacturer with a 5% risk level.

Uploaded by

Joe 254
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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KENYA METHODIST UNIVERSITY

END OF 3RD TRIMESTER 2018 (PT) EXAMINATION


SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING, FINANCE AND INVESTMENT
UNIT CODE : STAT 211
UNIT TITLE : BUSINESS STATISTICS II
TIME : 2 HOURS

INSTRUCTIONS
 Answer Question One and any other Two Questions.

Question 1 (One) - (30 Marks)


a) Highlight the properties of normal distribution.
b) If 3% of electric bulbs manufactured by a company are defective find the probability that a
sample of 100 bulbs will contain:
i. No defective bulb
ii. Exactly two defective bulbs.
c) The distribution of wages in a manufacturing company is approximately normal. The company
has 5000 workers. The mean wage per month is $800 and the standard deviation is $200.
Estimate:
i. The number of workers getting salary between $700 and $800.
ii. The percentage of workers getting salary above $900
iii. The percentage of workers getting salary below $400.
d) The mean life in hours of a sample of six electric bulbs manufactured by a company is as
follows: 500 520 480 510 470 550
Compute 95% confidence limits of the population mean

Question 2 (Two) - (20 Marks)


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a) Describe the steps in testing hypothesis.
b) Two independent samples of 8 and 7 items gave the following values:

Sample A: 9 11 13 11 15 9 12 14
Sample B: 10 12 10 14 9 8 10

Using 5% level of significance test whether the difference between the means of the two
samples is significant.

Question 3 (Three) - (20 Marks)


a) Enumerate two uses of the chi square test.
b) 1000 families were randomly selected in a city to test the belief that rich families send their
children to private schools while the poor families send their children to public schools. The
results are as follows:

School
Income Privatepublic Total
Low 370 430 800
High 130 70 200
Total 500 500 1000
Using 5% level of significance, test whether income and type of school are independent.

Question 4 (Four) - (20 Marks)


a) Discuss the assumptions of ANOVA( analysis of Variance)
b) The following table gives the number of units of production produced by four employees each
using a different type of machine:
Employee Type of machine
M1 M2 M3 M4
E1 40 36 45 30
E2 38 42 50 41
E3 36 30 48 35
E4 46 47 52 44

Required:
i. Test the hypothesis that mean production is the same for the four machines

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ii. Test the hypothesis that the employees do not differ with respect to mean productivity. (Use
5% level of significance). Hint: use two way analysis of variance.

Question 5 (Five) - (20 Marks)


a) Discuss three properties of a good estimator.
b) You are working as a procurement manager for a company. The following information has been
supplied to you by two manufacturers of electric bulbs
Company A Company B

Mean life (in hrs) 1300 1248


Standard deviation in hrs 82 93
Sample size 100 100

Which brand of bulbs are you going to buy if you wish to take risk at 5%?

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