FINAL EXAMINATION
PROGRAMME Bachelor of Commerce in Information and Technology Management
MODULE Advanced Business Statistics
YEAR Two (2)
INTAKE January 2019
DATE 06 November 2019
TIME 14h00 – 17h00
DURATION 3 hours
TOTAL MARKS 100
INSTRUCTIONS TO THE CANDIDATE
1. Questions must be attempted in the answer book provided.
2. All queries should be directed to the invigilator; do not communicate or attempt to communicate with any
other candidate.
3. You have THREE HOURS to complete this paper. You are not allowed to leave the examination room within
the first hour and in the last 15 minutes of this examination.
4. This is a CLOSED BOOK examination.
5. Read ALL instructions carefully.
KK
Answer ALL questions.
QUESTION 1 (25 Marks)
The time (in seconds) that it takes 30 students to fill in a lecturer evaluation questionnaire is given below.
40.5 29.0 66.5 82.0 78.0 54.5 35.5 42.0 58.5 53.0
45.5 53.5 29.0 33.5 57.0 75.5 48.5 39.0 61.5 48.5
89.5 21.0 45.5 77.5 31.5 35.0 52.0 84.5 36.0 88.5
1.1. Construct a grouped frequency distribution of the above data using 5 classes of equal width.
Let 20.0 s be the lower limit of the initial class. (5 marks)
1.2. Draw an OGIVE curve depicting the grouped data in 1.1. (6 marks)
1.3. Calculate the mid-70% range. (6 marks)
1.4. Calculate the coefficient of variation and interpret the value obtained. (8 marks)
QUESTION 2 (25 Marks)
2.1. The number of spectators arriving for a tennis match at a major stadium follows a Poisson distribution with a
mean of 6 spectators per minute. Determine the probability that:
2.1.1. exactly four spectators arrive in a given minute. (4 marks)
2.1.2. at least THREE (3) spectators arrive in a 30-second period. (7 marks)
2.2. The electricity bill of residents in a small town follows a normal distribution with a mean of 𝜏 and a standard
deviation of 𝛿. It is known that 2.28% of residents pay more than R 10 000 and 15.87% pay less than
R 7000. Determine the values of 𝜏 and 𝛿. (10 marks)
2.3. Records show that 12% of athletes suffer from cramps during the Comrades Marathon. For a sample of five
randomly chosen athletes participating in the event, determine the probability that exactly two
will suffer cramps. (4 marks)
KK 1
QUESTION 3 (25 Marks)
The number of accidents in a small town, for three consecutive years, from 2012 to 2014 are presented in the table
below.
Q1 Q2 Q3 Q4
2012 200 150 250 300
2013 180 120 240 400
2014 230 100 260 380
3.1. Determine the adjusted seasonal indices. (12 marks)
3.2. Show that the linear regression equation is given by 𝑦 = 180.756 + 8.217𝑥.
Hint : Use 1, 2, 3,…for Q1 of 2012, Q2 of 2012, Q3 of 2012, …. (10 marks)
3.3. Use the results of 3.1. and 3.2. above to estimate the number of accidents in quarter 4 of 2015. (3 marks)
QUESTION 4 (25 Marks)
4.1. You invest R 12 000.00 at an interest rate of 10% per annum. After how many years will the investment
grow to a value of R 22 600.00 if the interest earned is:
4.1.1. simple? (3 marks)
4.1.2. compounded? (5 marks)
4.2. You consider buying a business for R 600 000.
The business is expected to run for 4 years and the following net returns are expected.
YEAR 1 : R 150 000
YEAR 2 : R 180 000
YEAR 3 : R 200 000
YEAR 4 : R 100 000
Should you buy the business? A project of this type is expected to return at least 10% per annum.
Show details of relevant calculations. (17 marks)
END OF PAPER
KK 2
ADVANCED BUSINESS STATISTICS EQUATION SHEET
MEASURES OF CENTRAL LOCATION (RAW DATA)
∑𝑥
𝑥̅ =
𝑛
𝑛+1
𝑀𝑒 = ( 2
) value if 𝑛 is odd
𝑛 𝑛
[( )+ ( )+ 1]
𝑀𝑒 = 2
2
2
value if 𝑛 is even
MEASURES OF CENTRAL LOCATION (GROUPED DATA)
∑𝑓𝑚
𝑥̅ =
∑𝑓
𝑛
𝑖[(2 ) − 𝑓(<)]
𝑀𝑒 = 𝑂𝑚𝑒 +
𝑓𝑚𝑒
𝑖[𝑓𝑚 − 𝑓𝑚 − 1 ]
𝑀𝑂 = 𝑂𝑚𝑜 +
2𝑓𝑚 − 𝑓𝑚 – 1 − 𝑓𝑚 + 1
PERCENTILES
𝑗𝑛
𝑖[100 − 𝑓(<)]
𝑃𝑗 = 𝐿 +
𝑓
MEASURES OF DISPERSION (GROUPED DATA)
∑𝑓𝑚2 − 𝑛(𝑥̅ )2
𝑆𝐷 = √
𝑛 −1
KK 3
PROBABILITIES:
BAYE’S THEOREM:
𝑃(𝐸1 )𝑃(𝐸|𝐸1 )
𝑃(𝐸1 |𝐸) =
𝑃(𝐸1 )𝑃(𝐸|𝐸1 ) + 𝑃(𝐸2 )𝑃(𝐸|𝐸2 )
PROBABILITY DISTRIBUTIONS:
BINOMIAL FORMULA:
𝑛! 𝑝𝑟 𝑞 (𝑛 –𝑟)
𝑃(𝑟) =
𝑟! (𝑛 – 𝑟)!
POISSON FORMULA:
𝜆𝑥 𝑒 −𝜆
𝑃(𝑥) =
𝑥!
z- FUNCTION (NORMAL DISTRIBUTION):
𝑥 − µ
𝑧=
𝜎
LINEAR REGRESSION AND CORRELATION:
𝑛∑𝑥𝑦 − ∑𝑥∑𝑦
𝑟=
√(𝑛∑𝑥 2 − (∑𝑥)2 ) √(𝑛∑𝑦 2 – (∑𝑦)2 )
𝑛∑𝑥𝑦− ∑𝑥∑𝑦
𝑏= 𝑛∑𝑥 2 − (∑𝑥)2
∑𝑦 − 𝑏∑𝑥
𝑎=
𝑛
INDEX NUMBERS:
Laspeyre’s price index
∑(𝑝1 × 𝑞0 )
𝐿𝑝 = × 100
∑(𝑝0 × 𝑞0 )
Laspeyre’s quantity index
∑(𝑝0 × 𝑞1 )
𝐿𝑞 = × 100
∑(𝑝0 × 𝑞0 )
Paasche’s Index
∑(𝑝1 × 𝑞1 )
𝑃𝑝 = × 100
∑(𝑝0 × 𝑞1 )
KK 4
INTEREST:
SIMPLE INTEREST
𝑆 = 𝑋 + 𝑛𝑟𝑋
COMPOUND INTEREST
𝑆 = 𝑋(1 + 𝑟)𝑛
PRESENT VALUE OF MONEY
1
𝑋=𝑆 ×
(1 + 𝑟)𝑛
KK 5
Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.0000 0.0040 0.0080 0.0120 0.0160 0.0199 0.0239 0.0279 0.0319 0.0359
0.1 0.0398 0.0438 0.0478 0.0517 0.0557 0.0596 0.0636 0.0675 0.0714 0.0753
0.2 0.0793 0.0832 0.0871 0.0910 0.0948 0.0987 0.1026 0.1064 0.1103 0.1141
0.3 0.1179 0.1217 0.1255 0.1293 0.1331 0.1368 0.1406 0.1443 0.1480 0.1517
0.4 0.1554 0.1591 0.1628 0.1664 0.1700 0.1736 0.1772 0.1808 0.1844 0.1879
0.5 0.1915 0.1950 0.1985 0.2019 0.2054 0.2088 0.2123 0.2157 0.2190 0.2224
0.6 0.2257 0.2291 0.2324 0.2357 0.2389 0.2422 0.2454 0.2486 0.2517 0.2549
0.7 0.2580 0.2611 0.2642 0.2673 0.2704 0.2734 0.2764 0.2794 0.2823 0.2852
0.8 0.2881 0.2910 0.2939 0.2967 0.2995 0.3023 0.3051 0.3078 0.3106 0.3133
0.9 0.3159 0.3186 0.3212 0.3238 0.3264 0.3289 0.3315 0.3340 0.3365 0.3389
1.0 0.3413 0.3438 0.3461 0.3485 0.3508 0.3531 0.3554 0.3577 0.3599 0.3621
1.1 0.3643 0.3665 0.3686 0.3708 0.3729 0.3749 0.3770 0.3790 0.3810 0.3830
1.2 0.3849 0.3869 0.3888 0.3907 0.3925 0.3944 0.3962 0.3980 0.3997 0.4015
1.3 0.4032 0.4049 0.4066 0.4082 0.4099 0.4115 0.4131 0.4147 0.4162 0.4177
1.4 0.4192 0.4207 0.4222 0.4236 0.4251 0.4265 0.4279 0.4292 0.4306 0.4319
1.5 0.4332 0.4345 0.4357 0.4370 0.4382 0.4394 0.4406 0.4418 0.4429 0.4441
1.6 0.4452 0.4463 0.4474 0.4484 0.4495 0.4505 0.4515 0.4525 0.4535 0.4545
1.7 0.4554 0.4564 0.4573 0.4582 0.4591 0.4599 0.4608 0.4616 0.4625 0.4633
1.8 0.4641 0.4649 0.4656 0.4664 0.4671 0.4678 0.4686 0.4693 0.4699 0.4706
1.9 0.4713 0.4719 0.4726 0.4732 0.4738 0.4744 0.4750 0.4756 0.4761 0.4767
2.0 0.4772 0.4778 0.4783 0.4788 0.4793 0.4798 0.4803 0.4808 0.4812 0.4817
2.1 0.4821 0.4826 0.4830 0.4834 0.4838 0.4842 0.4846 0.4850 0.4854 0.4857
2.2 0.4861 0.4864 0.4868 0.4871 0.4875 0.4878 0.4881 0.4884 0.4887 0.4890
2.3 0.4893 0.4896 0.4898 0.4901 0.4904 0.4906 0.4909 0.4911 0.4913 0.4916
2.4 0.4918 0.4920 0.4922 0.4925 0.4927 0.4929 0.4931 0.4932 0.4934 0.4936
2.5 0.4938 0.4940 0.4941 0.4943 0.4945 0.4946 0.4948 0.4949 0.4951 0.4952
2.6 0.4953 0.4955 0.4956 0.4957 0.4959 0.4960 0.4961 0.4962 0.4963 0.4964
2.7 0.4965 0.4966 0.4967 0.4968 0.4969 0.4970 0.4971 0.4972 0.4973 0.4974
2.8 0.4974 0.4975 0.4976 0.4977 0.4977 0.4978 0.4979 0.4979 0.4980 0.4981
2.9 0.4981 0.4982 0.4982 0.4983 0.4984 0.4984 0.4985 0.4985 0.4986 0.4986
3.0 0.4987 0.4987 0.4987 0.4988 0.4988 0.4989 0.4989 0.4989 0.4990 0.4990
KK 6
KK 7
KK
KK 1
