Test 1A

Name of Course: Business Statistics

Course Code: Stat 1012

Date: October 24, 2017

Professor: Kwang Hyoun Joo

Total of 7 pages

Length of Test: 2 hours

Open Book Test (Allowed to use a computer to read e-textbook)

Please note the following:

1. No dictionaries, cell phones, material of any kind except calculators, a

pencil, pen and eraser are to be on your desk.
2. There is to be no sharing of any material during the exam.
3. All personal belongings must be placed at the front of the room
4. Cell phones must be turned off and stored in your personal belongings at
the front of the room.

Student Name: __________________________________________________

Student’s Signature: ______________________________________________

Student ID Number: ______________________________________________

1. Multiple choices: (10 marks)

1) What is the level of the measurement for the income of each employees?
a. Nominal b. Ordinal c. Interval d. Ratio

2) What is the level of the measurement for a classification of students by province of

birth?
a. Nominal b. Ordinal c. Interval d. Ratio

3) If a group of 160 people’s age were collected and you are going to develop an age
frequency distribution from the collection. How many classes would you be suggested
to build up based on the “2 to k rule”?

a. 10 b. 8 c. 6 d. 4

4) A car company sales increased 7.6% in 2014, 8.2% in 2015 and decreased 4.3% in
2016. The average annual rate of increase in these three years is
a. 7.02% b. 5.42% c. 6.69% d. 5.43%

5) From the frequency distribution below:

Class 12 ≤ x < 24 24 ≤ x < 36 36 ≤ x < 48 48 ≤ x < 60

Frequency 9 26 18 15

The median class is

a. 12 ≤ x < 24 b. 24 ≤ x < 36 c. 36 ≤ x < 48 d. 48 ≤ x

6). If the enrolment for this Faculty of Business remained constant at 800 between 2000
and 2001, determine the change in the enrolment in the School of Accounting during this
time.

A. increase of 32 students C. increase of 24 students

B. decrease of 32 students D. decrease of 24 students
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7). A data set of ten observations are: 3.5, 16.4, 47.8, 39.5, 38.7, 10.8, 76.6, 58.2, 79.5
and 16.6. How many observations are above the median?

a. 2 b. 3 c. 4 d. 5

8). Refer to the following distribution of commissions:

Monthly commissions ($) Class Frequencies

1,000 to under 1,200 10

1,200 to under 1,400 11

1,400 to under 1,600 40

1,600 to under 1,800 28

1,800 to under 2,000 13

What is the relative frequency for those salespersons who earn between $1,600 to under
$2,000?

a. 51% b. 41% c. 68% d. 21%

9) Continue question 8, how many monthly commissions are at least $1600?

a. 61 b. 51 c. 68 d. 87
10). Refer to the following cumulative frequency distribution on days absent during a
calendar year by employees of a manufacturing company:

Days Absent Cumulative Number of Employees

0 to under 3 29

3 to under 6 43

6 to under 9 54

9 to under 12 57

12 to under 15 60

How many employees were absent between 6 to under 9 days?

a. 2 b. 3 c. 11 d. 57

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2. (10 marks) The table below shows the time (minute) waited by 18 people at a bus stop.
0.4 0.5 2.2 2.9 3.4 4.2 4.4 4.6 4.7
4.8 5.5 5.5 5.7 6.9 7.4 7.9 8.6 10.9
a. (3 marks) Form a frequency distribution with 3 classes, which includes the following
columns; class, midpoint, class, frequency, relative frequency, “less than” and
“more than” cumulative frequencies.
• The first and last classes should not be empty.

Frequency Distribution of the time people waited for bus

Time Range Mid Relative Cumulative Frequency
Frequency
(Minutes) Point Frequency Less Than More Than

b. (1 mark) Is there any mode in this sample? If yes, what is it?

c. (3 marks) Construct a histogram to show the frequency distribution and frequency

polygon of the time that people waited at the bus stop in the graph area below.

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 d. (3 marks) Draw the histogram of less than cumulative frequency and less than
cumulative frequency polygon in the graph area below.

3. (3 marks)
The Ollander Corporation operates three food processing plants in Europe. Recently, the
company was considering modifying its financial reward system for the plant managers. In
doing the analysis, the director of human resources collected information on the profits (in
thousands of U.S. dollars) generated from each plant. These data are as follow:

Profits $7500 $6700 $3300

Employees 125 110 65

a. (1 mark) Calculate the mean profit of these three plants.

b. (2 marks) Calculate the profit per person for each plant.

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4. (5 marks) A population has only four data values: 9, 12, 15, and 4.

a. (1 mark) Calculate the mean of the population

b. (2 marks) Calculate the variance of the population

c. (1 mark) Calculate the standard deviation of the population

d. (1 mark) Based on Chebyshev’s theorem, at least what percent of the observations

must be within 2 standard deviations of the mean? Is it true in this case?

5. (7 marks) The hourly wages for a sample of part-time employees at Atlantic Paints Inc.
are $16, $19, $21, $18, $20.

a. (2 marks) Calculate mean wages.

b. (2 marks) Calculate median wages.

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 c. (3 marks) Calculate standard deviation of the wages.

6. (4 marks) The weekly incomes of a group of sample observations followed symmetrical,

bell-shaped frequency distribution. The mean of this sample is $1700 and the standard
deviation is $150.

a. (2 marks) According to Empirical Rule, about how much percent of the incomes will
lie between $1400 and $2000?

b. (2 marks) Based on Empirical Rule, almost all the incomes are between what two
values?

7. (8 marks) The following data are the prices of fifty nine stocks.

$3.5 4.7 4.8 13.1 14.5 15.6 16.8 17.2 17.5 17.8
21.3 25.3 25.6 26.0 26.7 27.4 27.9 28.0 28.5 29.8
32.2 32.5 33.6 35.5 35.8 36.2 37.5 38.7 38.9 39.6
41.5 42.6 43.5 44.6 47.6 48.2 48.5 49.6 50.1 50.8
52.5 52.6 53.7 55.8 55.9 56.9 58.2 60.4 61.6 62.5
66.2 68.6 73.7 75.8 75.9 76.8 77.1 77.5 79.0

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 a. (1 mark) Determine the range of this set of data

b. (3 marks) Determine the quartiles Q1, Q2 and Q3

c. (2 marks) Draw a box plot and comment on your findings.

d. (2 marks) Find the 18th percentile.

8. (3 marks) Listed below is the percent increase in sales from a car dealer in the past five
years.
9.5 11.3 9.2 10.6 11.6
Determine the geometric mean percent increase over the 5 year period.

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