W1-2-60-1-6

JOMO KENYATTA UNIVERSITY

OF
AGRICULTURE AND TECHNOLOGY
UNIVERSITY EXAMINATIONS 2016/2017

YEAR I SEMESTER II EXAMINATION FOR THE DEGREE OF BACHELOR OF

COMMERCE/ BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY
HBC 2110: INTRODUCTION TO BUSINESS STATISTICS
DATE: JULY 2017 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER TWO
QUESTIONS

QUESTION ONE (30 MARKS)

(a) Define the terms;
(i) Inductive statistics
(ii) Intevential statistics
(iii) Index number
(iv) Time series
(v) Business Statistics
[10 marks]

x́
x−¿
¿
(b) Given ¿2
¿
∑¿
Find the standard deviation of x [2 marks]

(c) Prices of items and quantities for the years

2000 and 2007 are as shown below;
2000 2007
Item Price (p) Quantity Price (p) Quantity
(P0) (q0) (p0) (q0)
Bread 45@ 2,000 50@ 2500
Bottles drinks 60@ 1,060 55@ 15,000
Packets of floor 75@ 20,000 105@ 10,000
Printing paper 200@ 7,000 250@ 6,500

Use Paschal index method to determine the index for consumer index for the year
2007 using 2000 as base year. [10 marks]

(d) The following show daily demand of milk in litres from a milk vendor for 23
days;

1
 2099 528 2030 1530 1018 384 1499
1265 375 424 789 810 522 513
488 200 215 489 257 557 260
461 500

Calculate;
(i) Mean [3 marks]

(ii) Standard deviation. [4 marks]

(iii) Median [3 marks]

QUESTION TWO (20 MARKS)

(a) Define the terms;
(i) Independent events
(ii) Mutually exclusive events
(iii) Conditional events [6 marks]

(b) In a college 25% of boys and 10% of girls study mathematics the girls are 60% of the
student’s populations.
(i) What is the probability that maths is being studied?
[3 marks]

(ii) If a student is picked at random and found to be studying mathematics, find

the probability that the student is a girl. [4 marks]

(c) Two ordinary dice are cast, find the probability that;
(i) Sum on the two dice is 3. [2 marks]

(ii) The sum on the two dice exceeds 9 [2 marks]

(iii) The numbers on the two dice differ by more than 2.

[2 marks]

(iv)The product of the two number are even. [1 mark]

QUESTION THREE (20 MARKS)

(a)(i) Define the term regression. [2 marks]

(ii) Differentiate between correlation and regression. [3 marks]

(b) Management of a superstore clothing retail investigated the relationship between the
number sales force and the merchandize loss (in hundreds of dollars)

Week Loss (100 $) Sales personal

(Y) (X)

2
 20 20
23 21
18 17
17 23
17 24
12 25
17 23
26 20
21 22
11 24
10 26
04 28

(a) Determine the coefficient of correlation r,

(b) Test whether the data provide enough evidence to indicate a negative linear
correlation between X and Y? Test Using ∝ = 0.05.[15 marks]

QUESTION FOUR (20 MARKS)

(a) Define the terms;
(i) Index number [2 marks]

(ii) Differentiate between Pasche and Lespeyres index numbers [2 marks]

(iii) Differentiate between simple index and Aggregative indexes. [2

marks]

(b) Information on the prices of sugar, milk and floor for the years 2011- 2016 is provided
below. Using 2011 as base year. Calculate a weighted composite index for the basic
needs if the weights are the totals quantity consumed in 2011 as shown.

Year Average price per pound

Sugar Milk Floor
2011 167 94 154
2012 168 94 154
2013 168 94 156
2014 170 91 153
2015 162 85 146
2016 158 81 151
Total consumed in 43 (kg) 1 litre 12 (packets)
2011 (in billions) ___
[14 marks]

QUESTION FIVE (20 MARKS)

(a) Grocery shopper can be classified into four types; apathetic, convenience, involved
and price shoppers. The distribution of their shopping points is classified as either high
price, medium price, low and Non-classifiable.

Counts for what percentage of each group shopped in each category is provided;
Shopper Group

3
 Apathetic Convenience Price Involved
High 17 38 13 6 74
Price Medium 19 55 35 19 128
Store Low 14 12 20 3 49
Level Non classified 9 20 13 5 47
59 125 81 33 298

(i) Are the price store level independent from shopper group?