BUS 203: QUANTITATIVE METHODS I TUTORIAL QUESTIONS

1. The table below gives the income distribution of three states A, B, and C.

Income in thousand

Number of persons in thousands State A State B State C 5 10 20 25 40 8 7 5 3 5 15 6 2 1 1

10 20 40 50 80

a.

Using the same axis, draw Lorenz Curve for the data and comment on the state of inequality in incomes of each state

b. c.

What is the major drawback of the Lorenz curve? A tax is introduced in state C to correct the income inequalities and the following distribution Income (000) Number of persons in state C (000) Discuss the effectiveness of the tax system. 2. Give the merits and demerits of quartile deviation. Calculate quartile deviation for the following data: 10 10 20 5 40 4 50 4 80 2

Farm Size (in acres) 0 40 40 80 80120 120160 160200 200240 240 and over

No. of farms 394 461 391 334 169 113

3.

Mr A quantitative methods class had a standard deviation of 2.4 on standardized test, while Mr G quantitative methods class had a standard deviation of 1.2 on the same test. What can be said about these two classes?

4.

Goals scored by two teams A and B in a foot ball season were as follows

No. of goals scored in a match: No of matches

0 A B 27 17

1 9 9

2 8 6

3 5 5

4 4 3

Find which team may be considered more consistent.

5. Two automatic filing machines A and B are used to fill M 500 gms. cartons. A random sample of 100 cartons on each machine showed the following:

Tea contents (in gms) 485-490 490495 495500 500505 505510 510515

Machine A 12 18 20 22 24 4

Machine B 10 15 24 20 18 13

Comment on the performance of the two machines on the basis of average filling and dispersion.

6. The table below gives the returns of Kwadem Plc and Banaba Ltd indices Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Kwadem Plc 45% 23% -50% 20% 30% 25% 1.5% -30% 45% Banaba Ltd 35% 13% 10% 10% 40% 25% -15% -30% 45%

Calculate and interpret the following a. The mean returns of Kwadem Plc and Banaba Ltd indexes b. the geometric growth rate of Banaba ltd and Kwadem Plc indexes

c. the standard deviation of returns of Banaba Ltd and kwadem Plc indexes d. the coefficients of skewness of both returns

If the coefficient of variation is preferred measure of dispersion, which of the index pose less risk? What is the disadvantage of using mode as measure of central tendency for Kwadem Plc index. Give two limitation of the use of mean as a measure of central tendency.

7. The table below gives the summary statistics of four variable K, L, M and P. Interpret the results as detailed as you can K Mean Median 2.578569 2.568553 L 15.66697 15.67580 M 3.103530 2.969669 P 0.529950 1.176079

Maximum Minimum Std. Dev. Skewness Kurtosis

3.517498 1.217176 0.585162 -0.457593 2.527694

16.27578 15.12387 0.355105 0.077952 1.774350

7.280858 2.270481 0.935914 3.646267 16.21583

5.729546 -4.848010 3.756958 -0.191337 1.557846

8.

The marks obtained by 20 students in Quantitative methods and Law examinations are shown tables 1 and 2 respectively

Table 1 : Quantitative Methods 5 59 55 67 79 74 80 77 56 65 70 75 66 68 80 57 55 78 70 54

Table 2: Law 20 29 55 60 70 64 30 47 26 65 70 75 36 68 58 57 55 78 70 54

(i) Explain why common descriptive measure may not be appropriate to describe both scores (ii) Given reasons to support your choice of measure, compute central measure, deviation and measure of relative dispersion that is appropriate to describe each score. 9. The marks obtained by 20 students in Quantitative methods examination are shown below 5 59 56 29 55 67 55 60 79 74 70 64 80 77 30 47 56 65 26 65 70 75 70 75 66 68 36 68 80 57 58 57 55 78 55 78 70 54 70 54

(a) Find the number of classes, class interval and represent the information on freq. dist. Table (b) Compute the standard deviation , coefficient of variation and skewness (c) Interpret your results 10. The following data give the number of daily and Sunday newspapers published in each of the 13 western states during 2000: 7, 16, 92, 29, 6, 12, 11, 8, 18, 19, 6, 24, 9

a) calculate the mean, median, standard deviation and interquartile range for these data. b) Do these data contain an outlier? If so, drop the outlier and recalculate all the measures. Which of these measures changes by a larger amount when you drop the outlier? c) Which is the better measure of center for these data, the mean or the median? Which is the better measure of spread for the data, the standard deviation or the IQR? Explain.