INSTITUTE OF CHARTERED SECRETARIES AND

ADMINISTRATORS IN ZIMBABWE

SUGGESTED SOLUTIONS:
NOVEMBER 2020

BUSINESS STATISTICS AND INFORMATION TECHNOLOGY

QUESTION 1

a) Standard deviation of the following numbers: 6, 8, 11, 5, 2, 9, 8.

6+8+11+5+2+9+8 49
The mean of these numbers is = =7
7 7

∑(𝑥− 𝑥̅ ) (−1)2 + (1)2 +(4)2 + (−2)2 +(−5)2 + (2)2 +(1)2

Variance = =
𝑛−1 6

1+1+16+4+25+4+1 52
= = 6 = 8.67 to 2 decimal places
6

Standard deviation = √𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = √8.67

= 2.94 to decimal places.

b) Stem and leaf diagram

STEM LEAF
6 148
7 00134469
8 003447999
9 02558
10 0

c)
i) Proportion of the workers getting wages between $12.75 and $13.69 an hour.
X = wage

12.75−13.25
Z1 = = -0.83333
0.6

13.69−13.25
Z2 = = 0.73333
0.6

P(12.75 < X < 13.69)

= P(-0.833 < Z < 0.733)

= 0.298 + 0.268

= 0.566

Therefore about 56.6% of the workers have wages between $12.75

and $13.69 an hour.

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 The minimum wage of the highest 5%.

Y = minimum wage of the highest 5%

z = 1.645 (from the table)

𝑥−13.25
 = 1.645
0.6

x = 14.237

Therefore, the minimum wage of the top 5% is $14.24.

QUESTION 2

a)
x y x2 y2 Xy
1 85 1 7225 85
0 80 0 6400 0
2 70 4 4900 140
6 55 36 3025 330
4 90 16 8100 360
3 90 9 8100 270
3 95 9 9025 285
∑ 𝑥 = 19 ∑ 𝑦 = 565 ∑ 𝑥 2 = 75 ∑ 𝑦 2 = 46775 ∑ 𝑥𝑦 = 1470

𝑛 ∑(𝑥𝑦)−(∑ 𝑥)(∑ 𝑦)
r=
√𝑛 ∑ 𝑥 2 −(∑ 𝑥)2 ∗𝑛 ∑ 𝑦 2 −(∑ 𝑦)2

7∗ 1470−19∗565
=
√(7∗75− (19)2 )∗ (7∗46775−(565)2 )

−445
= 1159.66

r = -0.38

There is a weak negative correlation between the study time and the
final examination mark since r is closer to 0 than to -1.

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 b)
Sales Advertisement Rank for Rank for d =x– y d2
(xi) (xi) Sales (dx) Advertisement
(dy)
90 7 2 2 0 0
85 6 3 3 0 0
68 2 8 7 1 1
75 3 6 6 0 0
82 4 4 5 -1 1
80 5 5 4 1 1
95 8 1 1 0 0
70 1 7 8 -1 1
Total - - - 0 4

6 ∑ 𝑑2
𝑖
rR = 1 - 𝑛(𝑛2 −1)

6∗4
= 1 - 8∗ (64−1)

24
= 1 - 504

= 1 – 0.0476

= 0.95

The high positive value of the rank correlation coefficient indicates

that there is a very good amount of agreement between sales and
advertisement.

c)

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 i) There is no relationship in this data.
ii) It is not possible to draw a line of best fit because the data doesn’t
have a relationship.
iii) We cannot make predictions based on data without a relationship.

QUESTION 3

a)
Item Rate unit Price (1995) Price (2004)
Wheat per 10kg 100 140
Rice per 10kg 200 250
Flour per 10kg 250 350
Sugar per kg 14 20
Cooking Oil per litre 40 50
604 810

∑𝑃
Simple aggregative index = ∑ 𝑃1 * 100
0

810
= 604 ∗ 100

= 134.1

b)
10 000
Sales of 10 000 units annually divided equally over the 4 seasons is = 2 500.
4

The seasonal index for each quarter is:

4 000
1st Quarter = 1.6
2 500

3 000
2nd Quarter = 1.2
2 500

2 000
3rd Quarter = 0.8
2 500

1 000
4th Quarter = 0.4
2 500

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 c) Attributes of high quality information.
 Understandability - Since information is already in a summarized form, it must be
understood by the receiver so that he will interpret it correctly. He must be able to
decode any abbreviations, shorthand notations or any other acronyms contained in
the information.
 Relevance - Information is good only if it is relevant. This means that it should be
pertinent and meaningful to the decision maker and should be in his area of
responsibility.
 Completeness - It should contain all the facts that are necessary for the decision
maker to satisfactorily solve the problem at hand using such information. Nothing
important should be left out. Although information cannot always be complete,
every reasonable effort should be made to obtain it.

d) How organizations use their strategic information systems to gain competitive

advantage.
 Creating barriers to competitor’s entry: In this strategy, an organization
uses information systems to provide products or services that are difficult to
duplicate or that are used to serve highly specialized markets. This prevents the
entry of competitors as they find the cost for adopting a similar strategy very high.
 Generating databases to improve marketing: An information system also provides
companies an edge over their competition by generating databases to improve their
sales and marketing strategies. Such systems treat existing information as a
resource. For example, an organization may use its databases to monitor the
purchase made by its customers, to identify different segments of the market, etc.
 ‘Locking in’ customers and suppliers: Another way of gaining competitive advantage
is by locking in customers and suppliers. In this concept, information systems are
used to provide such advantages to a customer or a supplier, that it becomes
difficult for them to switch over to a competitor. For example, an organization may
develop its information system and give many benefits to its customers, like reliable
order filling, reduced transaction costs, increased management support and faster
delivery service.
 Lowering the costs of the products: strategic information systems may also help
organizations lower their internal costs, allowing them to deliver products and
services at a lower price than their competitors can provide. Thus, such information
systems can contribute to the survival and growth of the organization. For example,
airlines use information systems strategically to lower costs so that they may
counter competitor’s discount fares.
QUESTION 4

a)
A star topology is designed with each node (file server, workstations, and peripherals)
connected directly to a central network hub, switch, or concentrator.

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 Data on a star network passes through the hub, switch, or concentrator before continuing
to its destination. The hub, switch, or concentrator manages and controls all functions of
the network. It also acts as a repeater for the data flow.

Advantages of a star topology

 Easy to install and wire.
 No disruptions to the network when connecting or removing devices.
 Easy to detect faults and to remove parts.

Disadvantages of a star topology

 Requires more cable length than a linear topology.
 If the hub, switch, or concentrator fails, nodes attached are disabled.
 More expensive than linear bus topologies because of the cost of the hubs, etc.

b)
 Antivirus and security software - for the security of files and
applications, e.g., Malwarebytes, Microsoft Security Essentials, and
AVG.
 Disk defragmentation software - to organize scattered files on the
drive. Examples include Disk Defragmenter, Perfect Disk, Disk Keeper,
Comodo Free Firewall, and Little Snitch.
 File Compression software - to optimize disk space such as WinRAR,
Winzip, and 7-Zip.

c)
i) Access time - An SSD has faster access speed than the conventional
storage devices which means programs can run more quickly, which is
very significant, especially for programs that access large amounts of
data often like your operating system.
ii) Power - The SSD uses less power than the conventional storage
devices, which means a lower energy bill over time and for laptops, an
increase in battery life.

d) How a database solves the problems of the traditional file environment.

 A DBMS can reduce data redundancy and inconsistency by minimizing isolated files
in which the same data are repeated. The DBMS may not enable the organization to
eliminate data redundancy entirely, but it can help control redundancy. Even if the
organization maintains some redundant data, using a
 DBMS eliminates data inconsistency because the DBMS can help the organization
ensure that every occurrence of redundant data has the same values.
 The DBMS uncouples programs and data, enabling data to stand on their own.

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  Access and availability of information can be increased and program development
and maintenance costs can be reduced because users and programmers can
perform ad hoc queries of data in the database.
 The DBMS enables the organization to centrally manage data, their use, and
security.

QUESTION 5

a)
 Local exposure – Loss of control and visibility of the enterprise data which is being
transmitted, stored, and processed on a personal device. One of the inherent downsides
to BYOD.
 Data leakage – Potential data leakage or disclosure of enterprise data from an
unsecured device
 Public exposure – Susceptibility to man-in-the-middle attacks and eavesdropping at
public wifi hotspots often used by remote workers. Connecting to personal area
networks, e.g. using Bluetooth, poses similar security risks.
 Insecure usage – Unacceptable use of a BYOD by a third party, e.g. friends or family at
home.
 Rogue apps – By gaining root access to mobile devices, there’s a risk that users (aka
“rogue employees”) can bypass security restrictions. In some cases, they may install
rogue apps.

b)
i) Software controls
Monitor the use of system software and prevent unauthorized access
of software programs, system software, and computer programs.
System software is an important control area because it performs
overall control functions for the programs that directly process data
and data files.

ii) Hardware controls

Ensure that computer hardware is physically secure and check for
equipment malfunction. Computer equipment should be specially
protected against fires and extremes of temperature and humidity.
Organizations that are dependent on their computers also must make
provisions for backup or continued operation to maintain constant
service.
c)
i) Decision Support Systems
They serve the management level of the organization. DSS help
managers make decisions that are unique, rapidly changing, and not

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 easily specified in advance. They address problems where the
procedure for arriving at a solution may not be fully predefined in
advance. DSS have more analytical power than other systems. They
use a variety of models to analyze data, or they condense large
amounts of data into a form in which they can be analyzed by decision
makers. DSS are designed so that users can work with them directly;
these systems explicitly include user-friendly software. DSS are
interactive; the user can change assumptions, ask new questions, and
include new data.

ii) Executive Support Systems

These are used by senior managers to help them make decisions. ESS
serve the strategic level of the organization. They address non-routine
decisions requiring judgment, evaluation, and insight because there is
no agreed-on procedure for arriving at a solution. ESS are designed to
incorporate data about external events, such as new tax laws or
competitors, but they also draw summarized information from
internal MIS and DSS. They filter, compress, and track critical data,
displaying the data of greatest importance to senior managers.
ii) Transaction Processing Systems
These are the basic business systems that serve the operational level
of the organization. A transaction processing system is a computerized
system that performs and records the daily routine transactions
necessary to conduct business. Examples are sales order entry, hotel
reservation systems, payroll, employee record keeping, and shipping.
At the operational level, tasks, resources, and goals are predefined and
highly structured. The decision to grant credit to a customer, for
instance, is made by a lower-level supervisor according to predefined
criteria. All that must be determined is whether the customer meets
the criteria.

d) An office automation system is a computer based information system that

collects, processes, stores and transmits electronic messages, documents
and other forms of communications among individuals, work groups and
organizations.

“End of Suggested Solutions”

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