ST.

PAUL’S UNIVERSITY
S

UN
P A U L ’
Private Bag 00217 Limuru, 00217, KENYA

I VE R S I TY
Tel: 020-2020505/2020510/0728-669000/0736-424440
.
S T

SE R TY
VANT
S OF GO D AND HUMANI

SCHOOL OF COMMUNICATION AND COMPUTER STUDIES

DIPLOMA IN BUSINESSS TECHNOLOGY

MAY - AUGUST 2022/2023 SEMESTER

DBT 1206: BUSINESS STATISTICS

DATE: AUGUST, 2022 TIME: 2 hours

INSTRUCTIONS
Section a is compulsory. Answer any other two questions in section b.

SECTION A (COMPULSORY – this section carries 30 Marks)

Question One
a) Given the class midpoints of a frequency distribution as: 21.5, 25.5, 29.5, 33.5, 37.5, 41.5, 45.5 and
49.5, find
i. The class interval
ii. The class boundaries
iii. The class limits (6 marks)
b) At a school fair, visitors enter a “guess the weight of the cake” competition. Their guesses, rounded
to the nearest 100 grams, were recorded in the following table
Guess ( kg ) 10.5-10.7 10.8-11.00 11.1-11.3 11.4-11.6 11.7-11.9

Frequency 5 32 26 11 6

Find the geometric and harmonic means of the guessed weight. (4 marks)

c) State the difference(s) between the following;

i) Classification and tabulation of data
ii) Discrete and continuous variables (4 marks)
d) The data in the table below relate to heart rate at rest Y to kilograms’ body weight X.

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 Body
Heart rate weight X
Y
90 62

86 45

67 40

89 55

81 64

i) Write the regression equation for these data. (6 marks)

ii) Compute the coefficient of determination and interpret it. (4 marks)
e) Determine the standard deviation and the mean absolute deviation for the data: 31, 35, 29, 36, 25,
29, 48, 46, 28, 47, 42. (6 marks)

SECTION B (answer ANY TWO. Each question carries 20 Marks)

Question Two
a) Marks obtained by 94 students in a mathematics test were tabulated below. If the mode is estimated
to be 45.5, determine the values of the unknown a and b, taking the modal class to be 40-59.
(6 marks)
Class 0-19 20-39 40-59 60-79 80-99

Frequency 11 a 30 b 13

b) Given below is a frequency distribution for the height of first year students in St. Paul’s University.
Height 0-9 10-19 20-29 30-39 40-49

Students 2 14 24 12 8

Calculate
i. the arithmetic mean (2 marks)
ii. the median (2 marks)
iii. the mode (2 marks)
iv. geometric and harmonic means (3 marks)

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 v. standard deviation (2 marks)
vi. the mean absolute deviation (2 marks)

Question Three
a) An incomplete frequency distribution is given as follows:
Class 2-4 5-7 8-10 11-13 14-16 Total

Freq 2 m 10 n 5 29

Given that the median value of the distribution is 9.9, determine the missing frequencies m an n.
Hence find the mode. (5 marks)
b) Given that men and women are 100 and the mean age of the combined group is 42 years. Find
how many there are in each group, if the mean age for men is 45 years and that of women is 40
years. (4 marks)
c) A random sample of eight drivers insured with a company and having similar auto insurance
policies was selected. The following table lists their driving experience (in years) and the
number of accidents.
Driving Experience No. of
(years) (X) accidents (Y)

5 64

2 80

12 52

9 70

6 52

16 42

6 62

Using the matrix method,

i. Compute 𝑆𝑋𝑋 , 𝑆𝑋𝑌 , 𝑆𝑌𝑌 and hence the regression coefficients and the equation of the
linear regression model, 𝑦 = 𝛽𝑜 + 𝛽1 𝑥. (6 marks)
ii. Interpret the values of 𝛽𝑜 and 𝛽1. (2 marks)
iii. Compute the correlation coefficient and comment on your answer. (3 marks)

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Question Four
a) Discuss five limitations of statistics. (5 marks)
b) A company collected data on its advertisement expenditure and sales it made, as recorded in
the table below.
Sales(‘000) (Y) 65 67 71 71 66 75 67 70

Advertisement(‘000) 17 13 18 16 12 19 15 16
(X)
Using the least squares regression method, (don’t use the matrix method),
i. Make a scatter plot for the data and comment on it. (3 marks)
ii. Obtain the least squares regression equation and interpret the slope. (5 marks)
iii. Calculate the correlation coefficient and comment on your answer. (3 marks)
iv. Compute the coefficient of determination and interpret your answer. (2 marks)
v. What are the expected sales from an advertisement expenditure of 14000? (2 marks)

Question Five
a) In an examination taken by 120 students, Dr Addy marked the scripts and found that the mean mark
was 55 and the standard deviation was 12 marks. Prof. Osei Mensah then moderated the scripts and
after discussion with Dr. Addy they both agreed that the two candidates, who had scores of 37 and
38 respectively, should each be awarded 40 marks. Find the new mean and the new standard
deviation after the marks for the two candidates were changed. (6 marks)
b) For a given set of data, it is known that 𝑥̅ = 10 and ӯ = 4. The gradient of the regression line y on x is
0.6. Find the equation of the regression line and use it to estimate y when x=12. (3 marks)
c) Use the data below to obtain the least squares regression equation, 𝑦 = 𝛽𝑜 + 𝛽1 𝑥 (3 marks)
∑𝑛𝑖=1 𝑋𝑖 = 725 , ∑𝑛𝑖=1 𝑌𝑖 = 1011 , ∑𝑛𝑖=1 𝑋𝑖 𝑌𝑖 = 61685 , ∑𝑛𝑖=1 𝑋𝑖2 = 44475 , ∑𝑛𝑖=1 𝑌𝑖2 = 85905 ,𝑛 =
12
d) List and discuss five functions of statistics. (5 marks)
e) Plot an ogive for the frequency distribution below for the height of first year students in St. Paul’s
University. (3 marks)
Height 10-19 20-29 30-39 40-49 50-59

Students 14 24 12 8 2

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 Formulae
1. Simple linear regression using matrix formulation
i. 𝑆𝑋𝑋 = ∑𝑛𝑖=1(𝑋𝑖 − 𝑋̅)2 = ∑𝑛𝑖=1 𝑋𝑖2 − 𝑛𝑋̅ 2
ii. 𝑆𝑌𝑌 = ∑𝑛𝑖=1(𝑌𝑖 − 𝑌̅)2 = ∑𝑛𝑖=1 𝑌𝑖2 − 𝑛𝑌̅ 2
iii. 𝑆𝑋𝑌 = ∑𝑛𝑖=1(𝑋𝑖 − 𝑋̅)𝑌𝑖 = ∑𝑛𝑖=1(𝑌𝑖 − 𝑌̅)𝑋𝑖 = ∑𝑛𝑖=1 𝑋𝑖 𝑌𝑖 − 𝑛𝑋̅𝑌̅
𝑆
𝛽𝑜 𝑦̅ − 𝑥̅ 𝑆𝑋𝑌
iv. ( ) = ( 𝑆𝑋𝑌 𝑋𝑋 )
𝛽1
𝑆𝑋𝑋
𝑆𝑋𝑌
v. 𝑟=
√𝑆𝑋𝑋 𝑆𝑌𝑌

2. Simple linear regression using least squares regression formulation

𝑛 ∑𝑛 𝑛 𝑛
𝑖=1 𝑋𝑖 𝑌𝑖 −∑𝑖=1 𝑋𝑖 ∑𝑖=1 𝑌𝑖
i. 𝛽1 = 2
𝑛 ∑𝑛 2 𝑛
𝑖=1 𝑋𝑖 −(∑𝑖=1 𝑋𝑖 )

ii. 𝛽𝑜 = 𝑦̅ − 𝛽1 𝑥̅
𝑛 ∑𝑛 𝑛 𝑛
𝑖=1 𝑋𝑖 𝑌𝑖 −∑𝑖=1 𝑋𝑖 ∑𝑖=1 𝑌𝑖
iii. 𝑟= 2 2
√[𝑛 ∑𝑛 2 𝑛 𝑛 2 𝑛
𝑖=1 𝑋𝑖 −(∑𝑖=1 𝑋𝑖 ) ][𝑛 ∑𝑖=1 𝑌𝑖 −(∑𝑖=1 𝑌𝑖 ) ]

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