Business Statistics
Multiple Choice Exercises (Topic 1 to 5)
1. If two groups of numbers have the same mean, then
a. their standard deviations must also be equal
b. their medians must also be equal
c. their modes must also be equal
d. None of these altern
Topic 2: Basic Probability, Discrete Probability Distribution, Binomial Distribution
Supplementary Exercises
FB2200 01/02 past paper
Question 2
(a) An advertising executive is studying television viewing habits of married men and
women during prime time h
Topic 8: Simple Linear Regression
Supplementary Exercises Answer
FB2200 01/02 past paper
Question 4
(a) b 0 = 51.915, if we apply the regression equation at X=0, the average assessed value
will be 51.915 hundred thousands dollars. However, it is obviously
Topic 7 Tutorial Answers
Q1
a) p = 0.2
b) p 0.0725
Q2
a) = 0.5
n = 200 > 30, n =100 > 5, n(1- )=100 > 5
So sampling distribution of p is approximately normal, p ~ N (0.5,
P (0.5 p 0.6) P(
b) P( p
P(
lower
0.5(1 0.5)
200
Z
0.6 0.5
0.5(1 0.5)
200
) P(0 Z 2
Topic 7: Proportions
Supplementary Exercises - Answer
FB2200 02/03 past paper
Question 1
(a) 13.85 , 57.73
(b) Pr( X 50) =0.7123
(c) Let Y be the proportion of people getting the pass,
30
Pr(Y ) =0.9599
50
FB 2200 02/03 past paper
Question 4
(a) (i) Let b
Topic 7 Tutorial Questions
Q1
The following data represent the responses (Y for yes and N for no) from a sample of 40 college
students to the question Do you currently own shares in any stocks?
N
N
N
N
Y
N
N
N
N
N
Y
N
N
N
N
N
N
N
Y
N
N
Y
N
N
Y
N
N
N
N
Y
Y
Topic 7: Proportions
Supplementary Exercises
FB2200 02/03 past paper
Question 1
The exam marks of a large class of students follow a normal distribution with mean and
standard deviation . 1% of the students got 90 or above. 10% of the students got 40 or
b
Topic 6 Tutorial (One-Sample) Answers
Q1
14.6 hour
a) H0:
H1: 14.6 hour
b) A Type I error is the mistake of concluding that the mean number of hours studied at your school is
different from the 14.6 hour benchmark reported by Business Week when in fact i
Topic 6 Tutorial (One-Sample) Questions
Q1
Do students at your school study more, less, or about the same as at other business schools?
Business week reported that at the top 50 business schools? Business Week reported that at
the top 50 business schools,
Topic 8 Tutorial
Q1
Review the concepts of population and sample correlation coefficients. Demonstrate the use of EXCEL for
computing correlation coefficients. You may use the data in Examples 1-9 in your illustration.
Q2
Suppose that Y = 67+27X for all v
Topic 8 Tutorial Answers
Q2. c
Q3. c
Q4. a
Q5. b
Q6. c
Q7
a.
b&c.
d. Predicted consumpotion level = -0.2882(7.5)+5.2711 = 3.1096 litres
e. r = 0.992
Q8
a.
b.
For each additional thousand units increase in reported newsstand sales, the mean audited sales w
Topic 1 Tutorial Questions
Q1
The following graph shows the U.S. household income data in 1985.
(Source: The U.S. Department of Labor)
Critique the graph in terms of its layout, content and clarity
Q2
Figure 1 below shows the profits of ABC company from 2
Topic 8: Simple Linear Regression
Supplementary Exercises
FB2200 01/02 past paper
Question 4
You want to develop a model to predict assessed value of homes based on gross area. A sample
of 15 single-family apartments is selected in the Midwestern district
Formulae Sheet
1
N
;
1
Xi ;
n
1
N
2
X
1.
s2
X
i
X
i
2
1
2
X i X
n 1
2.
E ( X ) X i P( X i ) ;
2 Var ( X ) X i 2 P X i
3.
If X ~ Bin(n, p), then
(a)
P X k
(b)
E(X) = np ; Var(X) = np(1 p)
4.
n!
p k (1 p ) nk
k!(n k )!
P ( A or B ) P ( A) P (
Business Statistics
Multiple Choice Exercises (Topic 1 to 5)
1. If two groups of numbers have the same mean, then
a. their standard deviations must also be equal
b. their medians must also be equal
c. their modes must also be equal
d. None of these altern
Business Statistics More Exercises
Question 1
An article in Consumer Reports ranked 35 brands of interior latex paint using the qualitative classification shown below.
Rating
Number of Brands
Excellent
2
Very good
21
Good
11
Fair
1
Poor
0
(a) What is the
Business Statistics More Exercises
Question 1
An article in Consumer Reports ranked 35 brands of interior latex paint using the qualitative classification shown below.
Rating
Number of Brands
Excellent
2
Very good
21
Good
11
Fair
1
Poor
0
(a) What is the
Topic 6 Part I: Hypothesis Testing One Sample
Supplementary Exercises - Answer
FB2200 01/02 past paper
Question 1
(a) Let be the true average waiting time at back in commercial district.
H 0 : 5
H1 : < 5
t =-1.6867>-1.7613
We do not reject H 0 at = 0.05.
Topic 6 Part I & II: Hypothesis Testing One Sample
Supplementary Exercises
FB2200 01/02 past paper
Question 1
A bank branch located in a commercial district of a city has developed an improved
process for serving customers during the 12:00 to 1 p.m. peak
Topic 2 Tutorial Questions
Q1
Each year, ratings are compiled concerning the performance of new cars during the first 90
days of use. Suppose that the cars have been categorized according to whether the car needs
warranty-related repair (yes or no) and th
Topic 2 Tutorial Answers
Q1
Needs warranty- related repair
U.S.
Non-U.S.
Total
Yes
0.025
0.015
0.04
No
0.575
0.385
0.96
Total
0.600
0.400
1.00
a.
b.
c.
d.
P(needs warranty repair) = 0.04
P(needs warranty repair and manufacturer based in U.S.) = 0.025
P(ne
Topic 3: Normal Distribution
Supplementary Exercises - Answer
FB2200 02/03 past paper
Question 1
(a) 13.85 , 57.73
(b) Pr( X 50) =0.7123
FB2200 03/04 past paper
Question 4
(a) Pr( x 1.9) =0.0228 (2.28%)
(b) Pr( x 2.12) =0.0082 (0.82%)
(c) 2.0165
FB2200 04
Topic 1: Descriptive Statistics
Supplementary Exercises
FB2200 01/02 past paper
Question 1
A bank branch located in a commercial district of a city has developed an improved process for
serving customers during the 12:00 to 1 p.m. peak lunch period. The w
Topic 1 Tutorial Answers
Q1
The 3-D display makes it difficult to read the bars. Focusing at the front of each bar,
the side of each bar, or the back of each bar will give different impressions.
The x-axis goes from right to left, instead of the usual dir
Topic 1: Descriptive Statistics
Supplementary Exercises - Answer
FB2200 01/02 past paper
Question 1
(a) Bank branch in commercial district:
Mean= 4.287 mins
Median, Q 2 = 4.5 mins
Q1 = 3.2 mins
Q 3 =5.55 mins
interquartile range =2.35 mins
Bank branch i
Topic 3 Tutorial Questions
Q1
Given a normal distribution with = 100 and = 10, what is the probability that
a) X > 85?
b) X < 80?
c) X < 80 or X > 110?
d) 80% of the values are between what two X values (symmetrically distributed
around the mean)?
Q2
The