THE INSTITUTE OF ADMINISTRATION AND COMMERCE

STATISTICS OCTOBER 2022 OURSEWORK

DUE DATE: 23 SEPTEMBER 2022 TOTAL MARKS : 100

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INSTRUCTIONS TO CANDIDATES
1. Answer ALL questions
2. Answers should be submitted in typed softcopy
3. Use times new roman fond 12, line spacing 1.15
4. Observe Proper citing and acknowledgement of sources used
5. The cover Page should have: Name of Institute, National ID, Student Number,
Subject, a box indicating answered questions
6. ALL WORK TO BE SUBMITTED STRICTLY VIA STUDENT PORTAL

QUESTION ONE [40 MARKS]

1
1.1 Two dice are tossed, and the following events are defined.

A = {The total number of dots on the upper faces of the two dice is equal to
five}

B = {At least one of the two dice has three dots on the upper face}

Find

(a) P(A) [2]

(b) P(B) [2]
(c) P(A∩B) [4]
(d) P(A ꓴ B) [4]
1.2 Suppose you are given the following data:

96 92 81 55 68 90 82 65 90 72 120 75 80
80 80 82 95 86 85 76 50 70 78 60 80

Calculate:

(a) the mean, [3]

(b) the median, [3]

(c) the mode, [3]

(d) the standard deviation, and [4]

(e) Pearson’s coefficient of skewness.   [5]

1.3 The following data give the age distribution of members of a union.

2
 Age (years) Frequency
20 - 24 11
25 – 29 24
30 – 34 30
35 – 39 18
40 – 44 11
45 – 49 5
50 - 54 1

Calculate

(a) The mean [4]

(b) The median [3]

(c) The mode [3]

QUESTION TWO [15 MARKS]

3
Yann Tiersen, a French musician and composer, is best known for his crisp
piano ballads and accordion waltzes. He is going to have a classical concert in a
grand opera house. His concert is selling two types of tickets—the Gold
Reserved seats that sell for $240 per ticket and the Platinum Reserved seats that
sell for $368 per ticket. The following table shows the probability for the two
types of tickets sold in a day for Tiersen’s concert:

Gold Reserved Platinum Reserved

Seats Probability Seats Probability
5 0.25 3 0.46
6 0.13 4 0.25
7 0.27 5 0.13
8 0.35 6 0.16

a. Compute the expected values for both types of tickets. [3]

b. Calculate the standard deviation for both types of tickets. [5]

c. Calculate the coefficient of variation values for both types of tickets. (Hint:
CV equals to the standard deviation divides by the mean.) [4]

d. Based on your findings in part b and c, determine the variation within and
between the two types of ticket sold. [3]

QUESTION THREE [15 MARKS]

4
Of the 250 employees of a company, a total of 130 smoke cigarettes. There are

150 males working for this company, 85 of the males smoke cigarettes.

(a) Construct a contingency table [3]

(b) What is the probability that an employee chosen at random:

(i) Does not smoke cigarettes? [2]

(ii) Is female and smoke cigarettes? [2]

(iii) Is male and smoke cigarettes? [2]

(iv) Does not smoke cigarettes given that she is female? [3]

(c) Determine whether cigarette smoking and being male are statistically

independent. [3]

QUESTION FOUR [15 MARKS]

5
Suppose the number of complaints which a laundry company receives per day is

a random variable having a Poisson distribution with λ = 4.

(a) What is the probability that on a given day, the laundry will receive:

(i) No complaints? [3]

(ii) No more than one complaint? [3]

(iii) At least three complaints? [3]

(b)What is the probability that on a given half day;

(i) No complaints will be received? [3]

(ii) Between one and four complaints will be received? [3]

QUESTION FIVE [15 MARKS]

6
A motorcycle dealer has recorded the unit prices and quantities sold of three
models of the Suzuki motorcycle for 2009 and 2010. The quantities sold and
unit selling prices for both these years are given in the following table:

Motorcycle 2009 2010

model Unit price Quantity Unit price Quantity
(000) (units sold) (000) (units sold)
A 25 10 30 7
B 15 55 19 58
C 12 32 14 40

(a) Find the price relative for each motorcycle model. Use 2009 as the base
period. Interpret.
(b) Calculate the composite price index for 2010 with 2009 as the base period
using each of the following methods:
(i) the Laspeyres weighted aggregates method
(ii) the Laspeyres weighted average of price relatives method.
(c) Interpret the composite price index for the motorcycle dealer.
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