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Bopm 240: Business Statistics For Decision Making Question Paper
Bopm 240: Business Statistics For Decision Making
Course:Bachelor Of Commerce
Institution: Egerton University question papers
Exam Year:2015
EGERTON UNIVERSITY
SSP – NAKURU TOWN CAMPUS COLLEGE
FIRST SEMESTER, 2014/2015 ACADEMIC YEAR
SECOND YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
BOPM 240: BUSINESS STATISTICS FOR DECISION MAKING
EXAMINATION SESSION: MAY YEAR: 2015
Answer question one and any other two questions.
Question one
a) A college has a total population of 5000 students. It is desired to estimate the population that uses drugs.
I. What type of sampling would be necessary to reach a meaningful conclusion regarding drug use habits of students? ( 2 marks )
II. How would you go about selecting the sample in the method mentioned above? ( 3 marks )
b) Explain the following words used in statistical inference:
I. Null hypothesis ( 3 marks )
II. Coefficient of correlation ( 3 marks )
III. Rank correlation coefficient ( 3 marks )
c) State two areas that chi-square distribution is used. ( 4 marks )
d) In an analysis of the telecommunication students, the examining board classified the results as either credit, passes or discontinued. Further the board analyzed the students’ method of study which was full-time, part-time or private. An employee of the board classified the examination results and the method of study of 300 students. He then computed a test statistic of 42.28.
Required:
I. State the null and the alternate hypothesis that should be tested. ( 4 marks )
II. What conclusion can be drawn from the result of the data? ( use a = 0.05 ) ( 4 marks )
Question two
a) List five limitations of statistics. ( 5 marks )
b) The marketing research director of a laptop computer company wants to study the relationship between sales and advertising expenditure. A large portion of the advertising budget is spent on television commercials and the rest goes to magazine advertising. The director collected the following data from eight randomly selected sales periods.
Y X1 X2
180 2 7
220 4 10
150 1 6
230 4 12
209 4 11
186 3 9
250 5 12
172 2 8
Y=sales in millions of dollars
X1=magazine advertising in millions of dollars
X2=television commercials in millions of dollars
I. Compute the regression coefficients. ( 13 marks )
II. Predict the total sales for a period in which the magazine and television expenditures were $4million and $15million respectively. ( 2 marks )
Question three
a) Why is sampling necessary when studying characteristics of a population? ( 5 marks )
b) A large corporation has come up with a new pension plan. However before implementing the plan, the company president wants to find out the reaction of the employees about this plan and accordingly directed that a survey be conducted to test if the attitude towards the new plan depends upon the age of the employee. 400 Persons of different ages were selected at random and age groups and corresponding responses tabulated as follows:
Age group Options
Superior good fair satisfactory
20-29 10 25 40 70
30-39 6 8 18 30
40-49 21 15 10 18
50 - 60 45 20 4
I. At 99% level of confidence, test whether there is any relationship between the age of the employee and his/her opinion about the pension. ( 12 marks )
II. Suppose 5 men out of 100 and 25 women out of 1000 are color blind. A color blind person is picked at random. What is the probability that the person picked is a male? ( 3 marks )
Question four
A multiple choice test contains 6 questions. Each question has 3 answers of which only one is the correct. The student has no idea as to which of the alternatives is the correct one. The student rolls a fair dice. If face 1 and 2 shows up, the student selects answer (a). If face 3 or 4 shows up, he selects answer (b) and if face 5 or 6 shows up he selects answer (c).
I. Generate the probability distribution. ( 12 marks )
II. Find the probability that he will get at most two correct answers. ( 3 marks )
III. Find the probability that he will get at most two wrong answers. ( 3 marks )
IV. Find the probability that he will get all answers correct. ( 2 marks )
Question five
a) Outline the steps followed in hypothesis testing. ( 5 marks )
b) An educator claims that the average IQ of college students is no more than 110. To test this claim, a random sample of 150 students was taken and given relevant tests. Their average IQ score came to 111.2 with a standard deviation of 7.2. At level of significance, a=0.01, test if the claim of the investigator is justified. ( 10 marks )
c) Differentiate between a continuous and discrete variable. ( 3 marks )
d) Describe quota sampling. ( 2 marks )
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