UNIVERSITY OF THE FREE STATE

EBCS 1514 / EFBC 2514 TEST3

DEPARTMENT: MATHEMATICAL STATISTICS AND ACTUARIAL SCIENCE

Assessor: MRS L. DA SILVA

TIME: 3 HOURS MARKS: 100

1. Consider the following random variable and indicate the data type:
The population size of Egypt.
A) Nominal
B) Ordinal
*C) Discrete
D) Continuous
E) none of the above
2. Consider the following random variable and indicate the data type:
The amount of time spent on your assignments.
A) Nominal
B) Ordinal
C) Discrete
*D) Continuous
E) none of the above

3. Before leaving a particular restaurant, customers are asked to respond to the questions
listed below. Determine which questions will give you possible quantitative responses:
(i) What is the approximate distance of the restaurant from your residence?
(ii) Have you eaten at the restaurant previously?
(iii) If your answer to part (ii) was yes, on how many occasions?
(iv) Which of the following attributes of the restaurant do you find most attractive:
service, prices, quality of the food or varied menu?

Choose the co rrect option:

A) Only (i)
B) (ii) and (iii)
C) (ii) and (iv)

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*D) (i) and (iii)
E) (ii), (iii) and (iv)
F) None of the above

4. Given a population of 64, select a systematic sample of 16 with a starting point of 39.
What is the value of the third sample observation?
A) 39
B) 87
C) 51
*D) 47
E) 64
F) none of the above

5. Ashley has been keeping track of sales figures (in thousands of rands):
10, 6, 5, 10, 9, 7, 10, 9, 6, 8, 6, 6
One quarter of the sales figures are below _______.
A) 3.25
*B) 6
C) 6.25
D) 5
E) 7
F) none of the above

6. Ashley has been keeping track of sales figures (in thousands of rands):
10, 6, 5, 10, 9, 7, 10, 9, 6, 8, 6, 6
What is the average sales?
A) 7.5
B) 6.3457
C) 8
*D) 7.6667
E) 7
F) none of the above

7. Ashley has been keeping track of sales figures (in thousands of rands):
10, 6, 5, 10, 9, 7, 10, 9, 6, 8, 6, 6
What is the position of the second quartile?
*A) 6.5
B) 7.5
C) 6
D) 9.75
E) 3.75
F) none of the above

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8. Ashley has been keeping track of sales figures (in thousands of rands):
10, 6, 5, 10, 9, 7, 10, 9, 6, 8, 6, 6
What is the standard deviation?
*A) 1.8749
B) 24.4546
C) 3.5151
D) 10.5771
E) 44.42
F) none of the above

9. The following table gives the number of hours that hospital patients slept following the
administration of a certain anesthetic.

Number of hours Number of patients F

[1–4) 8 G
[4–7) 12 20
[ 7 – 10 ) A B
[ 10 – 13 ) 7 C
[ 13 – 16 ) 3 43
[ 16 – 19 ) 11 D
Calculate the mean number of hours that patients slept following the administration of
an anesthetic.
A) 13
B) 7.6333
C) 7.5
*D) 9.5
E) 3.3333
F) No correct answer provided

10. The following table gives the number of hours that hospital patients slept following the
administration of a certain anesthetic.

Number of hours Number of patients F

[1–4) 8 G
[4–7) 12 20
[ 7 – 10 ) A B
[ 10 – 13 ) 7 C
[ 13 – 16 ) 3 43
[ 16 – 19 ) 11 D
Calculate the third quarter of hours that patients slept following the administration of an
anesthetic.
A) 40
B) 5.375
*C) 13.5
D) 8.125

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E) 7.3462
F) No correct answer provided

11. The following table gives the number of hours that hospital patients slept following the
administration of a certain anesthetic.

Number of hours Number of patients F

[1–4) 8 G
[4–7) 12 20
[ 7 – 10 ) A B
[ 10 – 13 ) 7 C
[ 13 – 16 ) 3 43
[ 16 – 19 ) 11 D
Calculate the third percentile of hours that patients slept following the administration of
an anesthetic.
*A) 1.6075
B) 4.3201
C) 8.6636
D) 1.62
E) 8
F) No correct answer provided

12. An oil company plans to sink boreholes at two sites. The geological information obtained
indicated that the probability of finding oil at site A is 0.5 and the probability of finding
oil at site B is 0.4. Since the sites are far apart, independence can be assumed.
Determine: P(B|A).
*A) 0.40
B) 0.5
C) 0.75
D) 0.30
E) -0.46
F) none of the above

13. An oil company plans to sink boreholes at two sites. The geological information
obtained indicated that the probability of finding oil at site A is 0.5 and the probability
of finding oil at site B is 0.4. Since the sites are far apart, independence can be assumed.
Determine: P(A’|B).
A) 0.575
*B) 0.5
C) 0.6939
D) 0.3
E) 0.60
F) none of the above

14. An oil company plans to sink boreholes at two sites. The geological information
obtained indicated that the probability of finding oil at site A is 0.5 and the probability

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 of finding oil at site B is 0.4. Since the sites are far apart, independence can be assumed.
Determine: P(A  B’).
A) 0.4
B) 0.5
C) 0.15
*D) 0.3
E) 0.60
F) none of the above

15. An oil company plans to sink boreholes at two sites. The geological information obtained
indicated that the probability of finding oil at site A is 0.5 and the probability of finding oil
at site B is 0.4. Since the sites are far apart, independence can be assumed. Determine:
P(A  B’).
A) 0.54
B) 0.5
C) 0.51
D) 0
*E) 0.8
F) none of the above

16. If P(A) = 0.84, P(B) = 0.76 and P(A or B) = 0.90, what is P(A|B)?
A) 0.7
*B) 0.9211
C) 0.6384
D) 0.83
E) 1.6
F) none of the above

17. A and B are mutually exclusive events where P(B) = 0.25 and P(A’) = 0.4. Determine
P(A ∪ B).
A) 0.15
*B) 0.85
C) 0.65
D) 0.375
E) 0.75
F) No correct answer provided

18. A and B are mutually exclusive events where P(B) = 0.25 and P(A’) = 0.4. Determine P(B’|
A’).
A) 0.10
B) 0.25
C) 0.6667
*D) 0.375
E) 0.8333
F) No correct answer provided

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19. The employees of a company were surveyed on their educational background (degree
or no degree) and their marital status (single or married). Of the 600 employees, 400
had degrees, 100 were single and 60 were single with a degree. What is the probability
that an employee is single or have a degree?
A) 0.10
*B) 0.7333
C) 400
D) 0.1667
E) 0.2667
F) No correct answer provided

20. The employees of a company were surveyed on their educational background (degree
or no degree) and their marital status (single or married). Of the 600 employees, 400
had degrees, 100 were single and 60 were single with a degree. What is the probability
that an employee does not have a degree and are married?
A) 0.10
B) 0.7333
C) 0.0667
D) 0.1667
*E) 0.2667
F) No correct answer provided

21. The employees of a company were surveyed on their educational background (degree
or no degree) and their marital status (single or married). Of the 600 employees, 400
had degrees, 100 were single and 60 were single with a degree. What is the probability
that an employee has a degree given that he/she is married?
*A) 0.68
B) 0.73333
C) 0.5667
D) 0.85
E) 0.2667
F) No correct answer provided

22. A researcher plans to ask 6 randomly selected people if they went to a soccer
tournament. The table below shows the probability distribution.

Positive 0 1 2 3 4 5 6
response
Probabilit 0.005 0.045 0.015 0.3 0.02 A 0.2
y
What is the probability that more than two, but less than six people went to the
tournament?
A) 0.41
B) 0.95

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C) 0.75
D) 0.935
*E) 0.735
F) No correct answer provided

23. A researcher plans to ask 6 randomly selected people if they went to a soccer
tournament. The table below shows the probability distribution.

Positive 0 1 2 3 4 5 6
response
Probabilit 0.05 0.045 0.05 0.3 0.02 A 0.2
y
Determine the standard deviation of this distribution.
A) 2.84
B) 18.84
C) 2.1144
D) 0.7162
*E) 1.6852
F) No correct answer provided

24. If the expected value of a binomial is 2.52 and the variance is given as 0.9324,
determine the chance for a success.
A) 0.37
*B) 0.63
C) 0.3
D) 0.62
E) -0.38
F) No correct answer provided

25. Suppose that a student needs to buy 9 books for her statistics course. She decides to
buy used books. Let the number of used books that she will find be X and the probability to
find any given used book be 0.25. These probabilities are independent from one book to
the next. Determine P(X ≤ 9) .
A) 0.0007
B) 0.0017
C) 0. 9162
D) 0.0403
*E) 1.0
F) No correct answer provided

26. Suppose that a student needs to buy 9 books for her statistics course. She decides to
buy used books. Let the number of used books that she will find be X and the probability to
find any given used book be 0.25. These probabilities are independent from one book to
the next. What is the expected number of used books that she will buy?
A) 6

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*B) 2.25
C) 1.8
D) 4
E) 4.2
F) No correct answer provided

27. Suppose that a student needs to buy 9 books for her statistics course. She decides to
buy used books. Let the number of used books that she will find be X and the probability to
find any given used book be 0.25. These probabilities are independent from one book to
the next. What is the probability that she will get exactly one new book?
*A) 0.0001
B) 0.2253
C) 0.9999
D) 0.9898
E) 0.7747
F) No correct answer provided

28. The average number of aero-planes arriving at an airport is 3 per hour. What is the
probability that no aero-planes will arrive in the next hour?
A) 6
B) 1.7321
C) 1.5
*D) 0.0498
E) 3
F) No correct answer provided

29. The average number of aero-planes arriving at an airport is 3 per hour. What is the
probability that exactly 6 aero-planes arrive in the next 30 minutes?
A) 0.0504
B) 0.0052
C) 0.5199
D) 0.8744
*E) 0.0035
F) No correct answer provided

30. The time that it takes to install a new telephone, is normally distributed, with a mean
time of 45 minutes and a standard deviation of 8 minutes. By using the empirical rule, what
is the estimated percentage that the installation of a new telephone would take more than
37 minutes?
*A) 84%
B) 47.5%
C) 0.15%
D) 95%
E) 34%

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F) No correct answer provided

31. The time that it takes to install a new telephone, is normally distributed, with a mean
time of 45 minutes and a standard deviation of 8 minutes. By using the empirical rule, what
is the estimated percentage that the installation of a new telephone would take more than
53 minutes?
A) 2.35%
B) 34%
*C) 16%
D) 68%
E) 0.0235%
F) No correct answer provided

32. Determine the value of k if P(Z < k) = 0.5.

A) 1
B) -1
*C) 0
D) 0.5
E) -0.5
F) No correct answer provided
33. If X  N(110 ; 100) and n = 25, determine a if P(-a < X < a) = 0.1272
*A) 110.32
B) -1.06
C) 113.2
D) 111.6
E) 126
F) No correct answer provided

34. A company that sells annuities must base the annual payout on the probability
distribution of the length of life of the participants in the plan. Suppose the probability
distribution of the lifetimes of the participants is approximately normal with a mean of 68
years and a variance of 12.25 years. What is the lifetime of participants at which payments
have accumulated to at least 86% of the plan?
A) 71.78
*B) 64.22
C) 81.23
D) -3.78
E) 54.77
F) No correct answer provided

35. It is known that 25% of all people who saw a certain television program thought it
contained too much violence. A random sample of 200 is selected from this population.

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What is the probability that the proportion in the sample with this opinion is between 0.24
and 0.28?
A) 0.25
B) -1.2072
C) 0
D) 0.2072
*E) 0.4658
F) No correct answer provided

36. Consider the following two price index series, splice the two series with 2006 = 100.
Then move the basis where 2008 is the base year. Thereafter, give the index number for
2004.

2002 = 100
2003 2004 2005 2006
102 110 116 125

2005 = 100
2006 2007 2008 2009
105 109 118 126
A) 81.6
B) 92.8
C) 100
D) 88
*E) 78.31
F) No correct answer provided

37. Consider the following two price index series, splice the two series with 2006 = 100.
Then move the basis where 2008 is the base year. Thereafter, give the index number for
2008.

2002 = 100
2003 2004 2005 2006
102 110 116 125

2005 = 100
2006 2007 2008 2009
105 109 118 126
*A) 100
B) 112.38
C) 121.10
D) 94.4
E) 120
F) No correct answer provided

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38. The table below provides the GDP (in R 1 000 000) in real terms for each quarter during
2008 and 2009.

2008 I 54 000
II 7 000
III 11 000
IV 44 000
2009 I 59 000
II 7 000
III 10 500
46 000
Determine the growth rate in GDP for the first quarter of 2009 by using the method of
current period on the preceding period at annual rates.
A) 34.091%
B) 223.294%
C) -25.424%
D) -69.068%
E) 9.259%
*F) 42.506%

39. The table below provides the GDP (in R 1 000 000) in real terms for each quarter during
2008 and 2009.

2008 I 54 000
II 7 000
III 11 000
IV 44 000
2009 I 59 000
II 7 000
III 10 500
46 000
Determine the growth rate in GDP for the third quarter of 2009 by using the method of
current period on the same period of the preceding year may be interpreted as follows:
A) There was a 50% growth in GDP during the third quarter of 2009.
B) There was a 4.762% growth in GDP during the third quarter of 2009.
*C) There was a 4.545% decline in GDP during the third quarter of 2009.
D) There was a 16.979% decline in GDP during the third quarter of 2009.
E) There was a 33.333% decline in GDP during the third quarter of 2009.
F) There was a 95.455% growth in GDP during the third quarter of 2009.

40. An executive of a power company is interested in examining the relative costs of heating
fuels. In her study she contacted a sample of households who heat by electricity, paraffin,
and natural gas, and obtained the average quantity each household used per month. The
results are given in the table below:

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 Average Annual Unit Cost Average Monthly Usage
Fuel 1993 1994 1995 1993 1994 1995
Electricity(KW-hours) R0.35 R0.56 R0.80 1672 1595 1607
Paraffin R0.82 R1.20 R1.72 263 260 238
Gas R9.26 R10.20 R12.19 7.1 6.7 6.5
Determine the Paasche quantity index for 1995 with 1994 as base year.
A) 95.33
B) 91.35
*C) 98.30
D) 102.58
E) 101.73
F) no correct answer given

41. An executive of a power company is interested in examining the relative costs of heating
fuels. In her study she contacted a sample of households who heat by electricity, paraffin,
and natural gas, and obtained the average quantity each household used per month. The
results are given in the table below:
Average Annual Unit Cost Average Monthly Usage
Fuel 1993 1994 1995 1993 1994 1995
Electricity(KW-hours) R0.35 R0.56 R0.80 1672 1595 1607
Paraffin R0.82 R1.20 R1.72 263 260 238
Gas R9.26 R10.20 R12.19 7.1 6.7 6.5
Determine the simple composite price index for 1995 with 1993 as base year.
*A) 141.04
B) 95.33
C) 122.99
D) 99.45
E) 131.95
F) no correct answer given

42. Jane made a deposit of R 5000 on furniture and further paid an additional R 700 per
month for three years. Interest was charged at 14.5% p.a. compounded monthly on the
unpaid balance. What was the original price of the furniture she bought?
A) R 36 337.23
B) R 30 200
C) R 20 336.44
*D) R 25 336.44
E) R 31 337.23
F) No correct answer provided

43. Bianca wants to buy a car for R 35 000. She decides to save by depositing R 500 in
advance once a month into an account earning 11.32% interest per year, compounded
monthly. Approximately how many months will she have to save?
*A) 54

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B) 4.5
C) 53
D) 37
E) 70
F) No correct answer provided

44. If Gina earns an effective interest rate of 17.68% per annum on a savings account, what
is the nominal interest rate compounded every four months?
A) 16.62%
B) 18.74%
*C) 16.73%
D) 17.63%
E) 18.89%
F) No correct answer provided

45. John estimates that he will need R 10 500 ten months from now to replace the tyres on
his truck. Two months ago, he invested R 9 000 for this purpose at 11.5% simple interest.
What is the amount that John will still be short in ten months’ time?
A) R 292.50
B) R 408.67
*C) R 465.00
D) R 637.50
E) R 10 035
F) No correct answer given

46. Lulu opens a savings account that earns 8.47% simple interest per year to save for an
oriental carpet. She is planning to buy the carpet in 20 months’ time when she visits her
aunt in Turkey. What is the amount that she must invest now if the cost of the carpet is
equals to R 18 000?
A) R 15 459.00
B) R 15 718.93
*C) R 15 773.33
D) R 16 813.26
E) R 20 541.00
F) No correct answer provided

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