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Buss 211: Business Statistics Ii Question Paper
Buss 211: Business Statistics Ii
Course:Business Statistics Ii
Institution: Kenya Methodist University question papers
Exam Year:2008
KENYA METHODIST UNIVERSITY
END OF SECOND TRIMESTER 2008 EXAMINATIONS
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTEMENT : BUSINESS ADMINISTRATION
COURSE CODE : BUSS 211
COURSE TITLE : BUSINESS STATISTICS II
TIME : 2 HOURS
INSTRUCTIONS:
• Answer Question ONE (Compulsory) and any other TWO Questions
SECTION A
Question 1
The Gertrude Children’s Hospital recently reported that only 40% of the children who suffer a particular heart problem survive. Last year, the hospital admitted 9 children with the heart problem.
Required: Probability that;
(i) All 9 will survive (3 marks)
(ii) At least 3 will survive (4 marks)
(iii) Non of them will survive (3 marks)
Question 2
A Survey found that people keep their microwave ovens an average of 3.2 years, the standard deviation is 0.56 year. If a person decides to buy a new microwave oven, find the probability that he or she has owned the old oven for
(i) Less than 1.5 year (2 marks)
(ii) Between 2 and 3 years (4 marks)
(iii) More than 3.2 years (2 marks)
(iv) What percent of Microwave ovens would be replaced if a warranty of 18 months were given (2 marks)
Question 3
A recent study of robberies for a certain geographic region showed an average of one robbery per 20,000 people. In a city of 80,000 people, find the probability of the following:
(i) No robberies (3 marks)
(ii) Three or more robberies (4 marks)
(iii) Two robberies (3 marks)
Question 4
In an effort to improve the mathematics skills of 10 students, a teacher provides a weekly 1 hour tutorial session for the students. A pretest is given before the session and a post test is given after.
The results are shown here below:
Student 1 2 3 4 5 6 7 8 9 10
Pretest 82 76 91 62 81 67 71 69 80 85
Post test 88 80 98 80 80 73 74 78 85 93
At 1% level of significance can it be concluded that the sessions helps to improve the student’s mathematical skills. (10 marks)
SECTION B
Question 5
A state employee wishes to see if there is a significant difference in the number of employees at the interchanges of three state toll roads. The employees in each interchange are as given below:
Turnpike Bypass Expressway
7 10 1
14 1 12
32 1 1
19 0 9
10 11 1
11 1 11
Required:
(a) Can it be concluded that there is a significant difference in the average number of employees at each interchange at 5% level of significance? (11 marks)
(b) Differentiate between one way analysis of variance and two way analysis of variance (4 marks)
Question 6
(a) A bank recently did a study of its customers to determine whether the number of transactions in a checking account was independent of the marital status of the customer. The following data was obtained.
(b)
Number of transactions 0 - 01 11 – 20 21 – 30 31 – 40 Over 40
Marital status
Single 13 23 19 20 11
Married 6 15 33 45 27
Divorced 4 19 22 20 15
Others 2 11 8 5 2
Based up on these data, what should the bank conclude at 5% level of significance? (10 marks)
(b) Give four areas when Chi – square test can be applied (5 marks)
Question 7
(a) An attorney claims that more than 25% of all lawyers advertise. A sample of 200 lawyers in a certain city showed that 63 had used some form of advertising. At 5% level of significance, is there enough evidence to support the attorneys claim? (6 marks)
(b) Nairobi has 207 foggy days out of 365 days while Eldoret has 166 foggy days out of 365 days. At 2% level of significance, can it be concluded that the proportions of foggy days for the two towns are different? (6 marks)
(c) Find the 98% confidence interval for the difference of the two proportions (3 marks)
Question 8
(a) Differentiate between the following concepts
(i) One tail and two tail tests (2 marks)
(ii) Confidence level and level of significance (2 marks)
(iii) Estimator and Estimate (2 marks)
(iv) Statistic and Parameter (2 marks)
(b) State and explain the properties of a good estimator (7 marks)
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