Debre Birehan University

College of Business and Economics

Department of Management

(BA Program)

Date: 15/12/2015 E.C

Last Submission date: 30/12/2015 E.C

Statistics for Management - I Group Assignment for 2nd year Management

Students (Regular)

(Course Code: MGMT - 2172)

(Weight 20%)

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 General Guide Line

1. Form group that have a maximum of 10 members and perform this group assignment
briefly and submit on time.
2. All group members shall actively participate and engaged in all activities of the group
work.
3. If you write this assignment in hand writing; neat, clear and readable hand writing will
be rewardable.
4. Try to address all questions of the assignment and follow all the procedures as well as
the steps, giving only final answer is not allowed (showing all procedures are
compulsory).
5. Submit before the due date is acceptable, but submission on time is mandatory. And
submission after the due date or the last date is strictly forbidden (not acceptable).

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 Statistics for Management – I Group Assignment

1. Assume approximately 0.5 million high school students take the SAT in each year and the
college and universities use SAT scores in making admission decisions. The current version
of the SAT includes three parts: critical reading, mathematics, and writing. A perfect
combined score for all three parts is 2400. A sample of SAT scores for the combined three-
part SAT is as follows:
1665, 1525, 1355, 1645, 1780, 1275, 2135, 1280, 1060, 1585
1650, 1560, 1150, 1485, 1990, 1590, 1880, 1420, 1755, 1375
1475, 1680, 1440, 1260, 1730, 1490, 1560, 940, 1390, 1175
Required: Using 800 as the lower values for the first class and 200 as the class width; perform
the following?
A. Develop the frequency, relative frequency and cumulative frequency
distribution.
Class interval 800-1000 1001-1200 1201-1400 1401-1600 1601-1800 1801-2000 2001-2200
Frequency 1 3 6 10 7 2 1
Relative frequency 1/30=0.03 4/30=0.13 10/30=0.33 20/30=0.66 27/30=0.9 29/30=0.967 30/30=1
7
Cumulative 1 4 10 20 27 29 30
frequency

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B. Present the data using both histograms and cumulative frequency graph or
Ogive.

Histogram
Ogive

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 C. How many scores of scholastic aptitude test (SAT) are less than score of 1599.
Solution: - the SAT scores less than 1599 is in the above distribution is given as the cumulative
frequency of fourth class. It is 20 observations are existing less than 1599 score.
2. A small company consists of the owner, the manager, the salesperson, the accountant and
the cashier, all of whose monthly salaries except that of cashier are listed here.

Staff Manager Researcher Salesperson Accountant Cashier

Salary 30,000 20,000 12,000 14,000 9,000
Required: If the mean salary of the five employees is 17,000, find the monthly salary of the
fifth employee (i.e., Cashier)?
To unfilled values we can multiply the mean values within n number of staff then we can
get total amount of monthly salaries. Then to find salaries of cashier we can subtract sum of
another salary from total salaries.
Total salaries= n*mean salaries= 5*17000= 85000
Then to find out salaries of cashier we subtract total sum of filled salaries from overall
salaries.

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 SC= 85000-76000=9000.
This implies SC or salary of cashier is given us 9000.

3. The following are the given data 20, 30, 40, 50, and 60. Thus based on the given
information compute the following questions.
A. Add 10 to each value and find the arithmetic mean.
Solution Add 10 to each value and find the arithmetic mean.
20+10, 30+10, 40+10, 50+10, 50+10, 60+10=
30, 40, 50,60,70
( 20+10 ) + ( 30+10 )+ ( 40+10 ) + ( 50+10 )+(60+10)
arithmetic mean=
5
(30+ 40+50+60+70) 250
= = 5 =50
5
B. Subtract 10 from each value and find the geometric mean.
Solution Subtract 10 from each value and find the geometric mean.
20-10, 30-10, 40-10, 50-10, 50-10, 60-10
10,20 , 30, 40, 50
Geometric mean is given as follows
GM= √5 10∗20∗30∗40∗50= √5 12,000,000=26.0517
C. Multiply each value by 10 and find the harmonic mean.
20*10, 30*10, 40*10, 50*10, 60*10
200, 300, 400, 500, 600
Solution find harmonic mean
n
HM= 1 1 1 1 1
+ + + +
n 1 n2 n 3 n 4 n 5
5
= 1
+
1
+
1
+
1
+
1
200 300 400 500 600

5
= 30+20+ 15+12+10
6000

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 5∗6000 30000
= ¿ 30+20+15+12+10 = 87 =344.83
4. The following are the list of enrollments for the colleges that offer bachelor’s degree in
different field of studies
1013, 1867, 1268, 1666, 2309, 1231, 3005, 2895, 2166, 1136, 1532, 1461,
1750, 1069, 1723, 1827, 1155, 1714, 2391, 2155, 1412, 1688, 2471, 1759,
3008, 2511, 2577, 1082, 1067, 1062, 1319, 1037, 2400.
Required: Using the given information you are request to compute the following:
A. Construct a grouped frequency distribution with the six classes.
Class interval 1013-1345 1346-1678 1679-2011 2012-2344 2345-2677 2678-3010
Frequency 11 4 7 3 5 3

B. Identify the modal class and calculate the mean for the distribution.
Solution:- The modal class the class interval within high frequency this implies that the 1st class
or 1013-1345 class interval has within 11 frequency this implies that the first class is modal
class.
Mean of the distribution is given as the follows.
n

=∑ =
Xi 1013+1867+1268 … … … …+ 1037+2400
x i=1
33
n

53,994
= 33 =1636.19
C. Determine the modal class and calculate the mean for the distribution.
This similar to questions B it is redundancy.
5. Given the following data, (A) Find the median, quartiles and semi-interquartile range, (B)
Find the 8th deciles and 85th percentiles.
1976, 2162, 1502, 1782, 1523, 2033, 1564, 1320, 1951, 1714, 1841
1648, 1345, 1837, 1718, 2047, 1954, 2000, 1479, 2571, 1739, 1781
Solution first for median
Median=
First re order the observations from smallest to largest one

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 1320, 1345, 1479, 1502, 1523, 1564, 1648, 1714, 1718, 1739, 1781, 1782, 1837, 1841, 1951,
1954, 1976, 2000, 2033, 2047, 2162, 2571
Therefore, find median
th th
n n
observation+( +1)observation
Median is given by = 2 2
2
It implies that
11st observation+ 12nd observation 1781+ 1782
= =1781.5
2 2

Solution for quartiles

th
n
quartiles = observation therefore 22/4= 5.5 this implies that this number or observation
4
is found between 6th and 5th observation in other words it will be calculated by summing 5 th
observation and 6th observation together and divide by two.
1523+1564
1st Quartiles= 2 =1543.5
Solution for quartiles

2nd Quartiles= median 1781.5

3∗nth
3rd Quartiles= 4 observation= 66/4th observation 17.5th observation

17 th observation +18 th observation 1976+2000

3rd Quartiles= 2 = 2 =1988

Semi Inter-Quartiles range= 3rd Quartiles-1st Quartiles divide by

two
1988−1543.5
= 2 =444.5/2=222.25
(B) Find the 8th deciles and 85th percentiles.
8th deciles=8*n/10th observation= 17.6th observations it is similar to 3rd quartiles=1988
85th percentiles is given by 85*n/100th observations18.7th observations this implies that 19th
observations +18th observations divides by two 2000, 2033

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 2000+2033
= 2 =2017
6. Two neighbors work at the same place. One travels to work by bus, the other cycles to work.
The times taken (in minutes) by each transport to get to work on a sample of 8 days were
given as follows:
 Bus 33, 28, 40, 32, 41, 32, 38, 42
 Cyclist 26, 33, 27, 31, 31, 30, 28, 24
Required: Calculate the mean and standard deviation for each set of times and use them to
compare the travel times for the two commuters.
nb

=∑ =
Xbi 33+28+ 40+32+41+32+38+ 42
Mean of bus= x b i=1
8 =35.75
nb
nc

=∑
Xci
Mean of Cyclist = x c i=1
=
26+ 33+27+31+31+30+28+ 24 =28.75
nc 8

Std for bus= √ ¿ ¿ ¿ ¿=4.8154

Std for Cyclist== √ ¿ ¿ ¿ ¿=2.817

7. The mean of the number of sales of cars over a three month period is 87, and the standard
deviation is 5. The mean of the commissions is ETB 5225, and the standard deviation is
ETB 773. Thus, compare the variations of the two.

Answers: the deviations of number of sales of cars over a three month period from mean
when compared to the deviations of mean of the commissions the number of cars over a three
month is high ratio deviations. There are highly number of sales of cars over a three month
deviated from the mean when compared to the commissions.
8. An electrical goods retailer sold video recorders to 8200 customers last year and extended
warranties to 3500 of these customers. When the retailer sells a video recorder, what is the
probability that:

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 3500
A. The customer will buy an extended warranty? the probability is ? = 8200

=0.427
B. The customer will not buy an extended warranty?
3500
= 1-
8200
=1-0.427=0.573

9. The 120 employees at a factory were asked which would best improve their working life:
better promotion, higher pay or more respect from other staff. The results are tabulated
below.
Job Type
Response Manual Clerical Managerial
Better Promotion 12 12 3
Higher Pay 53 19 2
More Respect 7 6 6
Required: Based on the given information compute the following:
21
A. What is the probability that an employee selected more respect? = 120 =0.175
B. What is the probability that an employee is a clerical or selected better
12+ 12+ 3+19+6
promotion? = 120 =0.433
53
C. What is the probability that a manual employee selected higher pay? = 120
=0.4417
D. What is the probability that an employee selected more respect and is a manager?

6
= 120 =0.05
2
E. What is the probability that a managerial employee selected higher pay? = 120
=0.016
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10. A garage offers a breakdown recovery service for motorists that is available every day of the
year. According to their records the number of call-outs they received per day last year
were:
 Number of call-outs 0 1 2 3 4
 Number of days 68 103 145 37 12
Required: What is the probability that:
145
A. They receive two call-outs in a day? = 365 =¿0.408

68+103145
B. They receive two or fewer call-outs in a day?
365
=0.89
68
C. They receive one or more call-outs in a day?=1- 365 =¿0.808

12
D. They receive less than four call-outs in a day? 1- 365 =¿0.966

37 12
E. They receive more than two call-outs in a day? + =0.138
365 365
11. Last year 12,966 people opened new accounts at Commercial Bank of Ethiopia. Of these
5,314 were pass book accounts, 4,056 were CBE birr accounts, and 3,596 were mobile
banking accounts. What is the probability that when a customer opens a new account:
4,056
A. It is a CBE birr account?= =¿0.3128
12966
3,596
B. It is a mobile banking account? =¿0.277
12966
C. It is either pass book or mobile banking?= probability pass book +
5,314
probability mobile banking = +0.277=0.687
12966
12. The following is the distribution of the size of certain farms selected at random from a
district. Calculate the mode of the distribution.
Size of Farms 10 – 19 20 – 29 30 - 39 40 – 49 50 – 59 60 - 69 70 – 79
No of Farms 8 12 17 29 31 5 3
(F)
Required: Based on the given data, compute the following:

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 A. Determine the modal class and calculate the mode.
Modal class is the class within high frequency it is 5th class within 29 frequencies therefore it
modal class.

Mode= Lmodeclass+w ( ( Change1+Change

Change 1
))
Where
Change 1 is the difference of frequency of modal class from preceding class.
Change 2 is the difference of frequency of modal class from exceeding class.
2 2
=50+10( ) =50+10( )=50+0.7143=50.7143
( 2+26 ) ( 28 )
B. Identify the median class and calculate the median.
Median class is 4th class. In other words N/2th observations is (105+1)/2th is 53 rd observations
therefore 53rd observations is found in the 4th class.
Median is lmd+w/fmd
5/5(n/2-cbefore)
n+1
Median=lmd+w/fmd( −cfb )
2
106
= 40+10/29( −37)=40+0.3448*(53−37)=40+5.44=45.44
2
C. Calculate both the lower quartile and upper quartile.
Ldclass+w/fq(i*n/4-cfb)
lower quartile=is first quartile= it is found at n/4 th observation. It implies it found at 105/4 th
observation this means at 26.25th observation. 1
1∗n
lower quartile= lower limit of lower quartile+ w/frequency of lower quartiles (( −cfb)
4
lower quartile= is found in the third class
1∗n
lower quartile= 30+10/17( −cfb)
4
105
=30+0.588(( −20)= 30+0.588*6.25=33.675
4
 Upper quartile
Upper quartile is third quartile= the upper quartile is found at 78.75 th observations.
This observations is found at 5th class.

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 3∗n 3∗105
 Upper quartile= 50+10/31( −cfb)= 50+10/31( −cfb)
4 4
= 50+0.323(78.75−66)=50+0.323*12.75=54.119
D. Find the fourth deciles and the seventieth percentiles.
4th deciles is found in 4*n/10 th observations this indicates it was found at 42 nd observations this
implies it is in the 4th class. Therefore we calculate that
4th deciles =40+w/fq(i*n/10-cfb)
4∗n
=40+10/29( −cfb)=
10
4∗n
=40+0.3448( −37 )=40+0.3448(42−37)= 40+0.3448*5
10
=40+1.724=41.724

The marks of seventy-five students are summarized in the following grouped frequency
distribution.
Class 40 – 44 45 – 49 50 – 54 55 – 59 60 – 64 65 – 69 70 – 74
Frequency 7 10 22 15 12 6 3
Required: Based on the given information; perform the subsequent questions:
A. Calculate both the range as well as the relative range for the distribution.
Range= upper limit of highest class minus lowest limit of smallest class.
range=74-40=34
range
Relative range=
upper limit of highest class+lowest limit of smallest class
34
RR= =34/114=0.298
74+ 40
B. Find mean deviation about mean, median and mode for the distribution.
First find mean of the distribution
n

∑ xi∗fi 67∗6 +72∗3

=
i=1
7 = 42∗7+47∗10+52∗22+57∗15+62∗12+
7 +10+22+15+12+6+3
∑ fi
i=1

= 4125/75=55

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 Then find median, first find median by dividing total
number population by two. Then median is found at
75+1 th
2
=38 observation. It if found at 3rd class. The we

will use.
n+1
Median= lmd+w/fmd( 2
−cfb )

= 50+(5/22)¿)=50+0.227*21=50+4.773=54.773
Mode is found at 3rd class. Then
Change 1 2 2
Mode= Lmodeclass+w ( ) =50+10( )=50+10( )
( Change1+Change 2 ) ( 2+26 ) ( 28 )
Change 1 is the difference of frequency of modal class from preceding class.
Change 2 is the difference of frequency of modal class from exceeding class.
12 12 12
Mode= 50+5( )=50+5( )=50+5( )=50+3.158=53.158
12+7 ( 12+ 7 ) ( 19 )
Then second step find mean deviation about mean
mean deviation about mean= is given by the following formula
7

∑ fi|xi−X|=
MDMean= i=1
n
7∗|42−55|+10∗|47−55|+22∗|52−55|+15∗|57−55|+12∗|6 2−55|+6∗|67−55|+3∗|7 2−55|
75
474
= 75 =6.793

find mean deviation about mean

7

MDMedian= ∑
fi|xi−median|
i=1
n

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=
7∗|42−54.773|+10∗|47−54.773|+22∗|52−54.773|+15∗|57−54.773|+12∗|62−54.773|+6∗|67−54.773|+3∗|
75
473.319
= =6.311
75

find mean deviation about mode

7

MDMode= ∑
fi|xi−mode|
i=1
n
=
7∗|42−53.158|+10∗|47−53.158|+22∗|52−53.158|+15∗|57−53.158|+12∗|62−53.158|+6∗|67−53.158|+3∗|
75
468.474
= =6.246
75
C. Calculate the coefficient of mean deviation about the mean, median and mode.
Coefficient of mean deviation about the mean is given by ratio of MDMean to mean of
distribution.
MDMean 6.793
Coeff. MDMean= = =0.124
Mean 55
Coefficient of mean deviation about the Median is given by ratio of MDMedian to Median of
distribution.
MDMe di an 6.31
Coeff. MDMedian= = =0. 115
Me di an 54.773
Coefficient of mean deviation about the mode is given by ratio of MDmode to mode of
distribution.
MDMode 6.246
Coeff. MDMode= = =0. 117
Mode 53 .158

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