FACULTY Faculty of Economic and Management Sciences

DEPARTMENT Accounting, Auditing & Income Tax

SUBJECT Business Statistics A

SUBJECT CODE ABA 3691

DATE June 2015

DURATION 3 hours i u,lnxs I lo0

NORMAL /REGULAR EXAMINATION

Examiners: HR Thomas; S. Denk; P. Msiska; TM Shaalukeni

Moderator: P.N. Maliti (Polytechnic of Namibia)

This question paper consist of: 4 pages including this cover page

lnstructions:

o AttemPt all questions

o There are five (5) questions in this paper
o Show all your workings
o Use of a calculator is allowed

UNIVERSITY OF NAMIBIA EXAMINATIONS

 I (25 Marks)
Ouestion

The ,price-to-earnings ratio' is one measure of a company's most recent performance. A low ratio
indicates a relatively low stock price compared to its annual earnings. The 'price-to -eamings ratios'

of a sample of 26 cornpanies are given below'

Price-to-earnings ratios of 26 companies

44,4 25,1 17,2 26,3 51,6 7,5 [ 8,8 l9.s I 1.6

19,6 23,9 20,8 14,7 16,5 1)t 42,3 3s.8 r 8.9

13,5 26,2 15,3 29,4 13,1 24,9 33,7 14.7

a) Construct a frequency distribution table including cumulative frequencies (F) for the sample.

The number of classes given is six (6)' Show all your calculations' [10]

b) Find the midpoint of each interval range from your frequency distribution table to calculate,
to one decimal place, the following :

i. Mean 'price to earningsratio' t3]

ii. Median 'price earnings ratio' t3]
iii. The sample standard deviation of the 'price earnings ratios' t9]

Ouestion 2 (15 Marks)

The data below is provided by the local ice-cream shop that keeps track of how many ice-creams are

sold versus the temperature on that day. Here are the figures for the last 7 days. Let x; represent the
temperature ofthe respective days and let /; represent the ice cream sales on the respective days'

Day I 2 3 4 5 6 7

Ice cream Temp oC 14.2 16.4 l l.9 15.2 18.5 22.1 19.4

Sales (N$) 215 325 185 332 406 s22 412

Required:

i. Compute and interpret the sample covariance t7.sl

ii. Compute and interpret the sample correlation coefficient [7.s]
Ouestion 3 (20Marks)

A survey was conducted to learn about the attitudes of students towards the E-learning method. The
questionnaires were issued to male and female students. The following joint probability table was

constructed from the data provided where the respondents said the E-learning method was either
convenient or inconvenient.

Response Male Female Total

E-learning Convenient 48 26 74

Inconvenient 28 36 64

Total 76 62 138

l. Construct a joint probability table including the marginal probabilities t5l

lt. Given that a respondent is male, what is the probability a respondent will say the E-leaming

method is convenient [5]

iii. Given the respondent is female, what is the probability a respondent will say the learning

method is inconvenient t5l

iv. Using multiplication law; is the E-learning method independent of gender of the respondent?
Why? Why not?
: event that respondent is male and let P (B) :
Let the P (A) the respondent said E-leaming

method is Convenient t5l

Ouestion 4 (20 Marks)

Suppose it is known that 80% of households exposed to an advertisement will buy the product

advertised. Out of five households exposed to the advertisement, what is the probability that:

a) No household will buy the product advertised? t4l

b) All the households will buy the product advertised? l4l
c) Exactly two households will buy the product advertised? l4l
d) At least two households will buy the product advertised? t8l
Ouestion 5 (20 Marks)

The annual salaries of employees in a large company are approximately normally distributed with a
mean of N$ 100000 and a standard deviation of NS40000.

a) What percentage of people earn less than N$ 50 000? t5l

b) What percentage of people earn between N$55 000 and N$ 75 000? [10]
c) What percentage of people earn more than N$80 000? t5l

GOOD LUCK
 d Normal Distributlon

0 0.004 0.008 0.012 0.0319 0.0359

0.0398 0.0438 0.04?8 0.051? 0.0557 0.0596 0.0636 0-0675 0.0714 0.0753
0.0871 0.091 0.0948 0.0987 0.1026 0.1064 0.1103 0.1141
,,.0 i 0.07q3 0.0832
0.148 0.1517
.:i$ts;::$iir 0.11?9 0.1217 0.1255 0.1293 0.1331 0.1368 0.1406 0.1443
iia-* 0.1554 0.1591 0.1628 0.1664 0.17 0.1736 0.17',?2 01899 0.1844 0.1879
iiffiix$ 0.1915 0.195 0,1985 0.2019 0.2054 0.2088 0.2123 0.215'1 0.219 0.2224
0.6 ,
0.2257 0-2291 0;2324 0.23s7 0.2389 0.2422 Q.2454 0.2486 0.2517 0.2549
0.7 ': 0.258 , 0.2611 0.2642 0.2673 0.2704 0.2734 0.2764 0.2794 0.2823 0.2852
, i,trlir
rr,r

,,U .N
;i:rt.': -i

0.2881 A.291 a.2939 0.2967 0.7995 0.3023 0.3051 0.3078 0.31 06 0.3 133

,l-{1.9, ,t 0.3159 0.3186 0_32t2 0.3238 0.3264 0.3289 0.3315 0.334 0.3365 0.3389

':. ' la0,r:il:Li:r 0,3413 0.3438 0.3461 0.348s 0.3s08 0.3531 0.3554 o_3577 0.3s99 0.362L
' ' l.i::: .iii::iii::iiil
:'
:'I-I;::|,t,r.l ,
0.3643 0.366s 0.3686 0.3708 0.3729 0.3749 0.377 0.379 0-381 0.383
r.1,.lJi;1i1 0.3849 0.3S69 0.3888 03947 as925 0.394+ 0.3962 0.398 0.3997 0.4015
a-4032 0.4A49 0.4066 0.4082 o.4ogg 0.41l5 0.4131 0-4147 0.4162 A.4fi7
".',t$.1$ 0.4222 0.4236 0.42s1 0.426s 0.4279 0.4292 0.4306 0.4319
l',,,,ri{$ 0.4192 a-4207
;,,ilis$, 0.4332 0.4345 0.4357 A.$7 0.4382 0.4394 0.4406 0.4418 0.4429 0.4441
0.4452 0.4463 0.4+74 0.4484 o.44gs 0.4505 0.451s 0.4525 0.4535 0.4545
,lii.{i(l:ii::
Lr1::'qg.l 0.4554 0.4564 0,4s73 0.4582 0.4591 0.4599 0.4608 0.4616 0.4625 0.4633
! 0.4641 0.4649 0-4656 0.4664 0.4671 0.4678 0-4686 0.4693 0.4699 0.4706
ii:.{1.q:i*
,liii{r."!$ 0.4713 0.4719 0.4725 0.4732 0.4738 0.47M 0.475 0.4756 0.4761 0.4767
,';i,2:0,,1ii 0.4:772 0.4778 0.4783 0.4788 0.4793 0.4798 0.4803 0.4808 0.4812 0.481',1
,',i Is
.,ri#.'ffiitj
0.4821.
0.4861
0.4826
0.4864
0.483 0.4834 0.4838 0.4842 0.4846 0.485
0.4868 0.4871 0.487s 0.4878 0.4881 0.4884
0,4854 0.48s7
0.4887 0.489
.::2i$ 0.4893 0.4896 0.4898 0.4901 0.4904 0.4906 0.4909 0.4911 0"4913 0.4916
,it-f;,"#'';ii 0.4918 0.492 0.4922 A.4g2s 0.4927 0.4929 0.4931 0.4932 a.4934 0.4936
:,:l2iS... 0.4938 0.494 0.4s41 A.4943 0.4945 0.4946 0.4948 0.4s49 0.49s 1 0.49s2
irltl '
0.4953 0.4955 0.49s6 0.4957 0.49s9 0.496 0.4961 0.4962 0.4963 0.4964
ri.lffl;ri 0.4965 A.4966 0.496'7 0.4968 0.4969 0.497 o.4g7t 0.4972 0.4973 0.4974
0.4976 0.4977 0.4977 0.4978 o.4g7g o.4g7g 0.498 0.4981
,r? llii 0.4,974
0.4981
0.4975
0.4982 0.4982 0.4983 0.4984 0.4984 0.4985 0.4985 0.4986 0.4986
.,?,!-
r3;$,ir,il 0.4987 0.4987 0.4987 0.4988 0.4988 0.4989 0.4989 0.4989 0.499 0.499