FINAL EXAM – SPRING SESSION 2018

School of Computing, Engineering and Mathematics

Complete your details in this section when instructed by the Exam Supervisor at the start of the exam.
You should also complete your details on any answer booklets provided.

STUDENT SURNAME:

STUDENT FIRST NAME:

STUDENT ID:

EXAM INSTRUCTIONS
Read all the information below and follow any instructions carefully before proceeding.
This exam is printed on both sides of the paper – ensure you answer all the questions.
You may begin writing when instructed by the Exam Supervisor at the start of the exam.
Clearly indicate which question you are answering on any Examination Answer Booklets used.

UNIT NAME: Statistics for Business

UNIT NUMBER: 200032

NUMBER OF QUESTIONS: 6

VALUE OF QUESTIONS: The value of each question is indicated. Total marks: 50

ANSWERING QUESTIONS: Answers must be written on the ruled space provided.

LECTURER/UNIT COORDINATOR: Neil Hopkins

TIME ALLOWED: 3 hours TOTAL PAGES: 14

RESOURCES ALLOWED
Only the resources listed below are allowed in this exam.

All printed materials, books, handwritten or printed notes, and calculators are allowed.
Any calculator which has the primary function of a calculator is allowed. For example, calculators on mobile
phones or similar electronic devices are not allowed.

Question 1 2 3 4 5 6 TOTAL

Mark

DO NOT TAKE THIS PAPER FROM THE EXAM ROOM

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Question 1 ([2 + 2] + 2 = 6 marks)

a) The three-month returns [in percentages] for 9 shares are given below:

4 3 8 4 4 1 5 6 5

i) Calculate the mean of the returns.

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ii) Calculate the standard deviation of the returns.

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b) The owner of a supermarket in Bankstown recorded the price for its three most popular items
for the years 2016 and 2017, as shown below.

2016 Price($) 2017 Price($)

Coke (2L Bottle) 2.10 2.40
Bread (Loaf) 2.58 2.75
Milk (2L Bottle) 2.16 2.30

Calculate a simple aggregate price index for 2017, taking 2016 as the base year.
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Question 2 ([1 + 1 + 2] + [2 + 2] = 8 marks)

A survey of 500 voters in regard to a certain proposal showed that 250 of the 300 male voters were in
favour of the proposal, while a total of 150 voters were opposed.

The following table was constructed.

Male Female Total

In favour 250 100 350
Opposed 50 100 150
Total 300 200 500

i) Find the probability that a randomly selected voter is in favour of the proposal.
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ii) Find the probability that a randomly selected voter is female.

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iii) If a randomly selected voter is male, find the probability that he is in favour of the proposal.

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b) A university librarian is investigating the habits of students in the library. She has determined
that the number of books borrowed follows a discrete probability distribution as shown in the
following table:

No. of Books Probability

0 0.60
1 0.18
2 0.12
3 0.07
4 0.03

i) What is the expected number of books borrowed by a student?

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ii) What is the standard deviation of the number of books borrowed by a student?

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Question 3 (2 + 3 + 3 = 8 marks)

The times that a council worker spends processing each person’s order is normally distributed, with
mean 30 minutes and standard deviation 8 minutes.

a) What is the probability a person’s order will take more than 50 minutes?
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b) Under what time will the fastest 1% of orders be processed?

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c) What is the approximate probability that the total time it takes the council worker to process
the orders of 4 persons is less than 1.5 hours (90 minutes)?
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Question 4 (4 + 6 = 10 marks)

a) Is global warming a major issue with Australians? To answer that question, a researcher
conducts a survey of 800 randomly selected Australians. Suppose 640 of the surveyed people
replied that global warming is a major issue with them.

Construct a 95% confidence interval to estimate the proportion of Australians who feel that global
warming is a major issue with them.

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b) A study of pollutants showed that certain industrial emissions should not exceed 2.9 parts per
million. You believe a particular company may be exceeding this average. To test this
supposition, you randomly take a sample of nine (n = 9) air tests. The sample average is 3.5
parts per million, with a sample standard deviation of 1.2.

Can we conclude that the company is exceeding the safe limit? Use α = 0.10. Assume emissions
are normally distributed.

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Question 5 (5 + 5 = 10 marks)

a) An air-conditioning supplier uses two installers. He is interested in comparing the time each
installer takes to install an air-conditioning unit. Data concerning installation times was collected over
a period of time, and the following results were determined. (Note: the installation times are in hours).

Sample Mean Sample Standard deviation Sample Size

Installer A 3 1.1952 8
Installer B 4 1.4142 7

Is there evidence, at the 5% level of significance, of a difference in the average time of installation
between the two installers? (You may assume that all installation times are normally distributed, and
Installer A and Installer B have equal population variances). You may use the following Excel output.

t-Test: Two-Sample Assuming Equal Variances Installer A Installer B

Mean 3 4
Variance 1.429 2.000
Observations 8 7
Pooled Variance 1.692
Hypothesized Mean Difference 0
df 13
t Stat -1.485
P(T<=t) one-tail 0.081
t Critical one-tail 1.771
P(T<=t) two-tail 0.161
t Critical two-tail 2.160

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b) A market researcher wishes to study the popularity of the three most popular flavours of chips,
and observes the choice of flavour from a random sample of 200 recent sales. The age of the buyer of
each sale was also recorded and split into either Adult or Child. The observed frequencies are given in
the following table:

Flavour Plain Chicken Salt & Vinegar

Adult 30 30 40
Child 50 30 20

Can we conclude at the 5% level of significance that the flavour preferred is dependent on the age of
buyer (adult or child)?
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Question 6 (2 + 2 + 4 = 8 marks)

A property analyst is interested in looking at the relationship between the frontage (in metres) and
annual rent (in $) of a number of retail shops in a suburban shopping mall, and collects the following
data:

Shop 1 2 3 4 5 6 7 8 9 10
Frontage (m) 7.8 7.8 6.4 2.7 5.3 6.8 4.4 5.9 3.0 7.4

Annual Rent ($) 28000 24200 22500 11400 20600 19400 16400 16800 11400 25300

You may use the following Excel print-outs or summary statistics provided to answer the questions

SUMMARY OUTPUT      SUMMARY STATISTICS 
Regression Statistics n= 10
Multiple R 0.934 = 5.75
R Square 0.872 ȳ= 19600
Adjusted R Square 0.856 s2x = 3.5072
Standard Error 2143.057 s2y = 31802222.22
Observations 10 sxy = 9860

Coefficients Standard Error t Stat P-value

Intercept 3434.785 2295.615 1.496 0.173
Frontage (m) 2811.342 381.444 7.370 0.000

a) Determine the linear regression equation to predict the annual rent from its frontage size.
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b) Predict the annual rent (in $) of a retail shop in a suburban shopping mall with a frontage of 5
metres. How confident are you in this prediction?

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c) Use an appropriate statistical test to determine, at 5% level of significance, whether there is
any evidence of a significant linear relationship between annual rent (in $) and frontage.
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 _SPARES PAGE IF NEEDED
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END OF EXAM PAPER

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