Series 4 Examination 2009

BUSINESS STATISTICS
Level 2 Wednesday 4 November Subject Code: 2009 Time allowed: 2 hours 30 minutes

INSTRUCTIONS FOR CANDIDATES Answer 4 questions. All questions carry equal marks. There is a list of formulae at the end of the paper. Graph paper is provided within the answer book. Write your answers in blue or black ink/ballpoint. Pencil may be used only for graphs, charts, diagrams, etc. All answers must be correctly numbered but need not be in numerical order. Workings must be shown. Make sure your answers are accurate and neat. You may use a calculator provided the calculator gives no printout, has no word display facilities, is silent and cordless. The provision of batteries and their condition is your responsibility.

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ASE 2009 4 09 1

QUESTION 1 The table shows the distribution of fines imposed for motoring offences by courts in the south of England during May 2007. Fine (x) x < 40 40 < x < 70 70 < x < 100 100 < x < 150 150 < x < 250 250 < x < 600 (Source: Monthly Digest of Statistics October 2008) (a) Draw a cumulative frequency curve to represent the data above. (5 marks) (b) Find the following using either the cumulative frequency curve or by calculation: (i) (ii) the median the quartile deviation. (5 marks) (c) Estimate the percentage of motorists fined between 170 and 300 for motoring offences in the south of England. (4 marks) From the table the following calculations were made: fx and fx = 91700 = 16691600 Number of people (f) 23 120 434 102 73 48

(d) Use these summary measures to estimate: (i) (ii) the mean and standard deviation of the fines imposed by the courts the coefficient of variation for the data. (8 marks) An analysis of the level of fines imposed for motoring offences by courts in the east of England gave a mean = 135 and standard deviation = 62. (e) Calculate the coefficient of variation for this data and compare your answer with that obtained in (d)(ii). (3 marks) (Total 25 marks)

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QUESTION 2 The following table shows the main groups that make up the components of the index of retail prices, together with their weights and price relatives at December 2007: Price relative December 2007 (January 2004 = 100) 109.6 141.3 176.4 119.1 96.4

Group Travel and leisure Food and clothing Alcohol and tobacco Housing Personal expenditure

Weight 205 160 320 210 105

(a) Draw a percentage component bar chart to show the relative importance of the five groups listed in the table above. (6 marks) (b) Which of the groups shows the smallest increase in price over the period? (2 marks) (c) Calculate the index of retail prices for all groups shown for December 2007 using January 2004 as the base period. (4 marks) Included in the index for Housing is rent which has a weight of 95 and an index number of 153.6. (d) (i) (ii) Recalculate the all groups index excluding rent payment. (4 marks) What effect has this change had on the all groups index? Give a reason for your answer. (2 marks) The index of retail prices for January 2004 with January 1997 = 100 was 141.6. (e) Calculate the index of retail prices for December 2007 with January 1997 = 100. (3 marks) In January 2000 a person retired with a pension of 8,600 per annum. His pension was index linked (increased at the same rate as the index of retail prices). In January 2000 the index of retail prices with January 1997 = 100 was 121.7 (f) Calculate the value of his annual pension in December 2007. (4 marks) (Total 25 marks)

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QUESTION 3 (a) Explain when the Product Moment Method should be used rather than Spearmans rank as a measure of statistical correlation. (4 marks) The Head of Maths at a City College is concerned at the low marks recorded by a number of his students in their Accountancy examination. Ten students were selected at random from his class and asked to record how many Accountancy lessons they had missed during the year and how many hours they had spent studying for their Accountancy examination. The table below shows the number of classes missed and the examination marks for the ten students included in the survey. Student Accountancy exam mark (%) Number of classes missed A 18 8 B 36 7 C 45 12 D 22 6 E 69 2 F 72 4 G 16 5 H 33 1 I 60 4 J 79 1

(b) Plot the data on a scatter diagram and comment on the pattern shown. (5 marks) (c) Calculate the Product Moment Correlation coefficient for this data. (10 marks) (d) (i) (ii) Use the value found in part (b) to calculate the Coefficient of Determination. Explain, in context, what this measures. (4 marks) The equivalent value for the correlation coefficient between hours of study and Accountancy examination mark was + 0.98. (e) The Head of Maths concludes that more hours of study result in a higher Accountancy examination mark. Explain why this may not be a correct conclusion. (2 marks) (Total 25 marks)

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QUESTION 4 (a) State two reasons why samples might be selected from a population rather than the whole population being examined. (4 marks) The following data shows the length of residence of heads of households in their present dwellings. Length of residence (years) less than 1 1 but less than 5 5 but less than 10 10 but less than 15 15 but less than 30 30 but less than 55 (Source: General Household Survey 2008) (b) Draw a histogram to represent the data and comment on the pattern shown. (8 marks) A large double glazing company plans to conduct a sample survey of householders using length of residence as the main criterion for stratifying the chosen sample. (c) Explain how a stratified random sample of 250 householders could be chosen, showing clearly the number to be selected from each of the classes listed in the table above. (5 marks) The company will conduct the survey by email. (d) Give two advantages and two disadvantages in using this method of data collection. (4 marks) (e) State two ways in which it might be possible to improve the response rate for this survey. (4 marks) (Total 25 marks) Percentage 4 30 36 15 10 5

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QUESTION 5 (a) Explain the meaning of the following terms giving a suitable business example to illustrate each term: (i) (ii) mutually exclusive events independent events. (4 marks) Last year 1800 cars were repaired at a local garage. The repair record for each car indicates whether or not it runs on leaded or unleaded fuel and whether it has a large engine size (1600cc or above) or small (below 1600cc). The records show 72% of all the cars ran on unleaded fuel. Of the 360 cars of large engine size, 80% ran on unleaded fuel. (b) Complete either a clearly labelled table or tree diagram to represent these statistics. (6 marks) (c) Calculate the probability that a repair record chosen at random is for a car that: (i) runs on leaded fuel and has a small engine size (ii) runs on unleaded fuel or has a small engine size (iii) has a large engine size given it runs on unleaded fuel. (8 marks) (d) If three repair records are selected at random from the annual total, find the probability that two of these records will be for a small engine car running on unleaded fuel. (7 marks) (Total 25 marks)

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QUESTION 6 A large retail store employs 100 sales staff. Management at the store pay an annual bonus to each member of the sales team based on the value of their sales throughout the year. The following table shows a summary of the bonus payments made at the end of 2008. Bonus payments made (00) 3 and under 5 5 and under 7 7 and under 9 9 and under 11 11 and under 14 14 and under 17

Number of staff 3 10 23 32 24 8

Total payment (00) 12 60 184 320 300 124

(a) Draw a Lorenz curve to represent the data. (8 marks) (b) (i) (ii) Comment on the level of inequality shown in the diagram Suggest a reason why the curve is shaped as shown. (4 marks) The store opens Tuesday to Saturday each week. Sales, in hundreds of pounds, for the first 15 trading days of December 2008 were recorded as: Tues 32 64 70 Wed 48 52 56 Thurs 82 93 97 Fri 91 97 102 Sat 104 124 135

Week 1 Week 2 Week 3 (c) (i) (ii)

Find, using the method of moving averages, the trend values for daily sales. (6 marks) Explain why the order of moving average used in (c) (i) is appropriate for this data. (2 marks)

The seasonal factors for the sales data based on the additive model are as follows:

Tues -17.8

Wed -31.9

Thurs 7.5

Fri 11.5

Sat 30.7

(d) (i) (ii)

Seasonally adjust the data for week 3. (3 marks) What does this show? (2 marks) (Total 25 marks)

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BLANK PAGE

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LEVEL 2

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