SERIES 2 EXAMINATION 2002 BUSINESS STATISTICS SECOND LEVEL (Code No: 2009) WEDNESDAY 17 APRIL ________

Instructions to Candidates (a) The time allowed for this examination is 2 hours 30 minutes. (b) Answer 4 questions. (c) All questions carry equal marks. (d) Your answers should be written in blue or black ink/ballpoint. graphs, charts, diagrams, etc. Pencil may be used only for

(e) Candidates should note that graph paper is provided within the answer book. (f) All answers must be clearly and correctly numbered but need not be in numerical order. If no working is shown, a correct answer may receive full marks but an incorrect answer will receive no marks. Candidates are therefore advised to indicate how they arrive at their answers.

(g) Candidates must pay due regard to good figures, accuracy and neatness in their work. (h) Candidates may use calculators provided the calculators give no printout, have no word display facilities, are silent and cordless. The provision of batteries and responsibility for their condition must rest with the candidate. (i) A list of formulae appear at the end of the paper. ________

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ASE 2009 2 02 1 >f0t@W9W2`BkBeBk@dGc#

QUESTION 1 (a) Explain what is meant by the term rate of inflation. (2 marks) (b) State the main steps involved in the construction of an index to measure the rate of inflation. (5 marks) (c) The following data was collected from the wages section of a company: Employee Status 1997 Number of Employees 100 480 180 400 Weekly Wage () 2001 Number of Employees 80 240 200 840 Weekly Wage ()

Non Manual: Men Manual: Men Non Manual: Women Manual: Women (i)

260 242 193 170

344 325 252 206

Calculate a base weighted index which shows the increase in wages between 1997 and 2001. (8 marks) Calculate a current weighted index which shows the increase in wages between 1997 and 2001. (8 marks)

(ii)

(iii) Explain briefly the reasons for the differences in your answers to parts (i) and (ii). (2 marks) (Total 25 marks)

QUESTION 2 The training manager of a large company has recorded the time taken by 200 new recruits to complete a particular task. The following table shows the distribution of times (in minutes): Time Taken (minutes) 0 and under 10 10 and under 20 20 and under 30 30 and under 40 40 and under 60 60 and under 90 Number of Recruits 16 44 72 36 20 12

(a) Construct a histogram to represent the data. (8 marks) (b) Estimate the modal value from the histogram. (3 marks) (c) Calculate the mean and standard deviation of the time taken. (9 marks) (d) Calculate the coefficient of variation explaining what it measures. (5 marks) (Total 25 marks)

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QUESTION 3 (a) Explain the meaning of the terms independent event and mutually exclusive event. (4 marks) (b) A batch of 200 components checked by a company showed 4 to be substandard. A sample of 3 components is to be selected at random from the batch with replacement. Find the probability that the sample includes: (i) no substandard component, (ii) exactly one substandard component, (iii) more than one substandard component. (13 marks) (c) The high cost of inspection has resulted in the company having to consider alternative methods of sample selection. Write brief notes to explain the differences between the following pairs: (i) (ii) Systematic and Quota sampling Multistage and Stratified sampling. (8 marks) (Total 25 marks)

QUESTION 4 (a) Explain the difference between primary and secondary sources of data. (4 marks) (b) The number of items produced last month by each of the 15 members of a production assembly team was recorded as follows: 142 127 101 108 137 139 128 68 124 112 121 123 133 130 77

Find the value of each of the following measures for the data given above: (i) Range (ii) Quartile deviation (iii) Mean deviation. (12 marks) (c) For each of the measures listed, state what is being measured and give one advantage and one disadvantage for each alternative. (9 marks) (Total 25 marks)

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OVER

QUESTION 5 The following data shows the turnover and profit levels of 8 companies in the year 2001: Company Turnover (000) 650 520 400 780 1100 330 850 970 Profit (000) 75 90 16 82 135 55 92 105

A B C D E F G H

(a) Plot the data on a scatter diagram. (4 marks) (b) Calculate the product moment correlation coefficient between profit and turnover. (12 marks) (c) Calculate the coefficient of determination and briefly outline what it measures. (4 marks) (d) Explain how you would attempt to forecast the profit level for another company if you were given the turnover. Discuss the likely accuracy of such a forecast. (5 marks) (Total 25 marks)

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QUESTION 6 (a) Describe and illustrate diagrammatically the Lorenz Curve as a method of presenting business data. (8 marks) (b) The following data shows the monthly sales (in units) of a product during the years 2000 and 2001: Month Sales (units) 2000 102 92 110 136 144 156 167 162 123 101 74 174 Sales (units) 2001 124 118 130 148 166 178 194 186 142 130 100 213

January February March April May June July August September October November December (i)

Draw a Z chart to represent the above data. (11 marks)

(ii)

Give three detailed comments on your results. (6 marks) (Total 25 marks)

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LCCI CET 2002

2009/2/02

LCCI CET 2002

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