FINAL ONLINE SUMMATIVE ASSESSMENT

PROGRAMME Bachelor of Commerce in Information and Technology Management

MODULE Advanced Business Statistics
YEAR Two (2)
INTAKE July 2023 Semester 1
DATE 04 December 2023
SECTION A [100 MARKS]
Answer ALL the questions in this section.

Type ONLY the letter that represents the correct answer next to the corresponding number in your online answer
booklet. E.g. 26 B

Questions 1 and 2 refer to the table below.

Five students were asked to name a random variable and their responses are recorded in the table below.

Student Random variable

Caleb Temperature
Vusi Weight
Samantha Shoe size
Mavis Gender
Ahmed Population

QUESTION 1 (4 Marks)

Which student(s) named ratio-scaled data?

A. Vusi
B. Ahmed and Vusi
C. Vusi and Caleb
D. Ahmed and Caleb

QUESTION 2 (4 Marks)

Which students named nominal and ordinal data, respectively:

A. Mavis and Ahmed

B. Samantha and Mavis
C. Mavis and Caleb
D. Mavis and Samantha
 Questions 3 – 7 refer to the (incomplete) grouped frequency distribution below which depicts the daily training
time (in minutes) for 30 athletes.

Training Number of athletes(f) Midpoint fm fm2

Time (m)
(minutes)
0 < 30 5 15 75 1125
30 < 60 7 45 315 14175
60 < 90 11 75 825 61875
90 < 120 4 105 420 44100
120 < 150 3 135 405 54675
S 30 - A B

QUESTION 3 (4 Marks)

The values of Aand B, respectively, are:

A. 2040 and 175950

B. 2040 and 4161600
C. 2400 and 17595
D. 2020 and 17595
 QUESTION 4 (4 Marks)

The estimated mean (in minutes) is:

A. 62
B. 65
C. 68
D. 71

QUESTION 5 (4 Marks)

The median (in minutes) is:

A. 68.9
B. 68.6
C. 67.8
D. 68.2

QUESTION 6 (4 Marks)

The mode (in minutes) is:

A. 70.9
B. 70.2
C. 69.6
D. 71.3

QUESTION 7 (4 Marks)
The variance (in minutes) 2 is closest to:

A. 1266
B. 1284
C. 1297
D. 1379
Questions 8 and 9 refer to the problem below.
Box 1 contains three R 50 notes and five R 100 notes.
Box 2 contains two R 20 notes and four R 200 notes.

QUESTION 8 (4 Marks)

Ashley randomly selects a note from Box 1 and then one note from Box 2.
What is the probability that he selects notes to the value of R 70?

A. 0.708
B. 0.175
C. 0.125
D. 0.235
QUESTION 9 (4 Marks)
Sarah randomly selects one note from Box 1 and then one note from Box 2. What is the probability that she
selects notes not to the value of R 300?

A. 0.42
B. 0.58
C. 0.51
D. 0.63

Questions 10 and 11 refer to the problem below.

Students arrive at a tuition centre at an average rate of eight students per hour. Assume a Poisson distribution.

QUESTION 10 (4 Marks)

What is the probability that exactly three students arrive in a 30-minute period?

A. 0.391
B. 0.029
C. 0.195
D. 0.216

QUESTION 11 (4 Marks)

What is the probability that at least two students arrive in 45-minute period?

A. 0.017
B. 0.852
C. 0.045
D. 0.983
 Questions 12 – 13 refer to the problem below.
Records from a medical journal show that 45% of adult males will develop a hernia during
his lifetime. A random sample of five adult males is selected.

QUESTION 12 (4 Marks)

What is the probability that exactly two of these adult males will develop a hernia during his lifetime?

A. 0.397
B. 0.337
C. 0.276
D. 0.409

QUESTION 13 (4 Marks)

What is the probability that at most one of these adult males will develop a hernia during his lifetime?
A. 0.294
B. 0.206
C. 0.256
D. 0.050
Questions 14 and 15 refer to the problem below.
The average mass (in grams) of lemons from an orchard is 85 g with a standard deviation of 9 g. Assume that
the masses of these lemons are normally distributed.

QUESTION 14 (4 Marks)

What is the probability that a randomly selected lemon from this orchard has a mass exceeding 100 g?

A. 0.0375
B. 0.0575
C. 0.4525
D. 0.0475

QUESTION 15 (4 Marks)

What is the probability that a randomly selected lemon from this orchard has a mass between 80 g and 99 g?

A. 0.6529
B. 0.2283
C. 0.5612
D. 0.6820
Questions 16 – 18 refer to the problem below.
The research productivity of academics at a university depends on their teaching load. In the table below, the
teaching load (hours per week) of five academics and the number of publications (per year) are given.

Teaching load Number of publications (y) xy x2 y2

(hours)
(x)
8 7 56 64 49
12 5 60 144 25
16 4 64 256 16
20 2 40 400 4
25 1 25 625 1
S 81 19

QUESTION 16 (4 Marks)
The values of Sxy, Sx 2 and Sy 2, respectively are:

A. 245, 1498 and 95

B. 245, 1489 and 95
C. 254, 1489 and 95
D. 245, 1489 and 90
QUESTION 17 (4 Marks)

The Pearson’s correlation coefficient is:

A. 0.949
B. 0.989
C. – 0.899
D. – 0.989

QUESTION 18 (4 Marks)

The linear regression equation is:

A. y = - 9.55 – 0.355x
B. y = 9.55 + 0.355x
C. y = 9.55 – 0.355x
D. y = - 9.55 + 0.355x
Questions 19 – 20 refer to the problem below.
The price (in R) and quantity of a basket of three items for the years 2021 and 2023 are given in the table below.
2021 2021 2023 2023
ITEM PRICE (R) QUANTITY PRICE (R) QUANTITY
SWEETENER (kg) 140 100 170 150
CRACKERS (BOX) 40 60 50 80
TEABAGS (BOX) 65 90 75 110

QUESTION 19 (4 Marks)
Using 2021 as the base year, the Laspeyre’s price index for this basket of items is:

A. 120.22%
B. 119.78%
C. 122.87%
D. 141.12%

QUESTION 20 (4 Marks)
Using 2021 as the base year, the Paasche’s quantity index for this basket of items is:

A. 143.16%
B. 139.65%
C. 141.12%
D. 145.80
QUESTION 21 (4 Marks)

Consider the table which shows the quarterly sales of a company for 2021 and 2022.

YEAR QUARTER SALES (R 000)

2021 1 800
2 740
3 900
4 860
2022 1 950
2 770
3 990
4 1020

The first centered average is:

A. 878.75
B. 825.00
C. 843.75
D. 770.00

QUESTION 22 (4 Marks)

How long will it take an amount of money to triple in value if the interest rate offered is 12% per annum
compoundedyearly?

A. 10.4 years
B. 9.7 years
C. 8.6 years
D. 9.1 years
QUESTION 23 (4 Marks)

R 4500 is invested for seven years. Three years after the initial investment, another R 2500 is deposited into the
account. The interest rate for the first three years is 15% per annum compounded quarterly and for the next
four yearsit changes to 12% per annum compounded semi-annually.

A. R 15 567.03
B. R 14 983.42
C. R 16 245.91
D. R 15 140.83
Questions 24 and 25 refer to the problem below.
A businessman is contemplating purchasing a company for R 950 000. The company is expected to operate for
3 years, and the following profits are expected:

YEAR PROFIT (R) DISCOUNT FACTOR PRESENT VALUE (R)

1 450 000 0.909 409 050
2 740 000 J
3 890 000 0.751 668 390
S D

A project of this type is expected to return a yearly profit of 10%.

QUESTION 24 (4 Marks)

The missing values J and D, respectively, are:

A. 0.826 and 1 688 680

B. 0.859 and 1 688 680
C. 0.826 and 1 563 290
D. 0.793 and 1 688 680

QUESTION 25 (4 Marks)

What should be the final decision?

A. Do not buy the company since there is a nett loss of R 738 680
B. Buy the company since there is a nett profit of R 648 680
C. Buy the company since there is a nett profit of R 738 680
D. Do not buy the company since there is a nett loss of R 648 680

END OF PAPER