FACULTY OF COMMERCE

DEPARTMENT OF ENTREPRENEURSHIP

BUSINESS STATISTICS (BEN2203)

MID SEMESTER EXAMINATION

DURATION: 2 HOURS
START:
DATE:
MARKS: 100
______________________________________________________________________
Instructions to candidates
1. This paper consists of Section A and Section B.
2. Answer ALL questions in Section A.
3. Choose any three (3) questions in Section B.
4. Only non-programmable calculators may be used.
5. Read the questions carefully and note the marks allocated to each question.
6. Do not turn this page until you are instructed to do so by the invigilator.
7. Write legibly using blue/ black ink.

Page 1 of 7
SECTION A [40 MARKS]
ANSWER ALL QUESTIONS IN THIS SECTION.
1. Consider the following set of measurements which represent the unemployment
rates (%) of 12 countries:
7 9 11 5 3 5 10 12 5 6 7 4
a. Find:
i. Mean. (3 marks)
ii. Median. (2 marks)
iii. Mode. (1 mark)
b. calculate the following:
i. the range (1 mark)
ii. Standard deviation. (4 marks)
2. Briefly explain the difference between inferential statistics and descriptive statistics.
(4 marks)

3. Distinguish between nominal scale and ordinal scale of measurements, giving one
example in each. (4 marks)

4. Classify the following as either discrete or continuous data.

a. The number of patients in a hospital. (1 mark)
b. Height of students at a local college. (3 marks)

5. A fair coin is thrown three times. Suppose we are interested in the number of heads
obtained.
a. What is the probability of getting 2 heads (3 marks)

b. What is the probability of getting at least one head? (6 marks)

6. Using examples differentiate between primary and secondary data. (4 marks)

7. A list of 10 investment possibilities is presented to the directors of a company. Each

director must order the five projects he considers as the best, in order of importance.
How many different arrangements are possible? (4 marks)

Page 2 of 7
 [TOTAL:40 MARKS]

SECTION B [60 MARKS]

QUESTION ONE [20MARKS]

A survey of 500 customers was undertaken. Of the customers 300 were male and 200
were female customers. Of the male customers, 200 indicated that they prefer a
Samsung television brand and the remainder indicated that they prefer an LG TV. Of
the female customers, 150 customers indicated that they prefer a Samsung TV and the
remainder indicated that they prefer an LG TV.

a. Construct a cross-tabulation table. (8 marks)

b. If a customer is selected at random, find the probability that:
i. Is a female. (2 marks)
ii. Prefer Samsung brand. (3 marks)
iii. Prefer LG brand and are male. (3 marks)
iv. Is male, given that they prefer LG brand (4 marks)

QUESTION TWO [20 MARKS]

KFC, a local food outlet recently undertook a survey to investigate the amount of time
customers spend waiting to be served with their food orders. The results of the survey
were summarized in a table shown below.

Waiting Number of
time(minutes) customers
0 -<5 3
5 - < 10 6
10- < 15 10
15 -< 20 7
20 -< 25 4

a. Draw less than and more than ogives (cumulative frequency polygons)
(10 marks)

Page 3 of 7
 b. Calculate the average time it takes for customers to be served their food order.
(4 marks)
c. Calculate the median time it takes for customers to receive their food order.
(3 marks)
d. Find the mode of the data (3 marks)

QUESTION THREE [20 MARKS]

A survey was carried out in Maun to 50 motorists on the preference of petrol

brand. The results are summarised below.

Petrol brand count Percentage

BP 13 26%
CALTEX 9 18%
ENGEN 6 12%
SHELL 22 44%
TOTAL 50 100%

a. What is the probability that a randomly selected motorist prefers Shell ( 3 marks)

b. What is the chance that a randomly selected motorist does not prefer Engen?
(3 marks)
c. What is the probability of finding a motorist who prefers either the BP, Caltex,
Engen or Shell brand of petrol? (4 marks)

Page 4 of 7
 d. A study of the memberships of boards of directors of major companies found that
the distribution in the table below provides an adequate approximation of the
probability distribution of x, the number of members on the board of a certain
company who are also members of at least one other major company.

x p(x )
1 0.52
2 0.22
3 0.19
4 0.04
5 0.03

Find the:
i. mean of x (4 marks)
ii. Standard deviation of x. (6 marks)

QUESTION 4 [20 MARKS]

a. State four characteristics of Binomial Random Distribution. (4 marks)
b. In an army battalion 3/5 of the soldiers are known to be married. Calculate the
probability of getting exactly 4 married soldiers in a row of 5 soldiers. (4 marks)
c. If there are three children in a family, find the probability that there is exactly one
girl in the family. (4 marks)
d. Two dice are thrown ,and let the score be the sum of the two outcomes
i. Write down the sample space (3 marks).
ii. Find the probability that the score will be a factor of 24 (3 marks)
iii. What is the probability that the score is a prime number ( 2 marks)

[TOTAL: 60 MARKS]
END OF EXAMINATION

Page 5 of 7
FORMULAE

Ungrouped Data

∑ ( x i−x )
− 2
− ∑ xi s= 2 2
s=
∑ 2
x i −n x
2

x= n−1
n n−1

Grouped Data

− ∑ f i xi
n
c ( 2 −f (<)) c (f m−f m−1 )
x= Median=O me + Mode=Omo +
n f me 2 f m−f m−1−f m+1

n 3n
c ( 4 −f (<)) c( 4
−f ( <))
Q 1 =O q 1 + Q 3 =O q 3 +
f q1 f q3

2
s=
∑ f i x 2i −n x 2
n−1

Regression Analysis

n ∑ xy−∑ x ∑ y
b= ∑ y−b ∑ x
n ∑ x −( ∑ x )
2 2 a=
n

2
n(n −1)¿
r=
n ∑ xy −∑ x ∑ y
RS=1−6∗∑ d2 ¿ ¿
√ [n ∑ x 2−( ∑ x )2 ][n ∑ y 2−(∑ y )2 ] ¿
Probability

P (AUB) = P(A) + P(B) –P(A∩B) E ( X )=μ=∑ x i p (x i)

σ =∑ ( x i−μ ) p(x i)
2 2
P (A∩B) = P (A)*P(B)

P ( A∩B)
P( A /B )= E ( X )=np 2
σ =np(1− p)
P( B )

Page 6 of 7
 e−a a x
P( x )= ¿ np (1− p)
x! Var(X)

P(r )=n C r pr qn−r x −μ

Z=
σ

Time Series Analysis

b=
∑ xy ∑y
a=
∑ x2 n

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