FAKULTI EKONOMI DAN PERNIAGAAN

UNIVERSITI MALAYSIA SARAWAK

94300 Kota Samarahan
Sarawak
EBQ2024 STATISTICS FOR ECONOMICS AND BUSINESS
TUTORIAL 5

INSTRUCTIONS TO STUDENTS
Students are required to prepare solutions before coming to tutorial class. You may be
requested to submit your solutions to your Tutor in the class.

Section A
1. Quantitative data refers to data obtained with a(n)
a. Ordinal scale
b. Nominal scale
c. Either interval or ratio scale
d. Only interval scale

2. Categorical data can be graphically represented by using a(n)

a. Histogram
b. Frequency polygon
c. Ogive
d. Bar chart

3. The collection of all possible sample points in an experiment is

a. The sample space
b. A sample point
c. An experiment
d. The population

4. The intersection of two mutually exclusive events

a. Can be any value between 0 to 1
b. Must always be equal to 1
c. Must always be equal to 0
d. Can be any positive value

5. The weight of a candy bar in gram is an example of

a. Categorical data
b. Either categorical or quantitative data
c. Weight data
d. Quantitative data
6. When a histogram has a longer tail to the right, it is said to be
a. Symmetrical
b. Skewed to the left
c. Skewed to the right
d. None of these alternatives is correct

Exhibit 1 (For Question 8-9 only)

The number of hours played (per week) by 350 statistics students are shown below

Number of hours Frequency

0- 9 14
10 - 19 90
20 - 29 185
30 - 39 61

7. The relative frequency of students playing 9 hours or less

a. is 0.04
b. is 14
c. is 0.2571
d. is 0.96

8. The hourly wages of a sample of 130 business executives are given below.

mean = 60 range = 20
mode = 73 variance = 324
median = 74

The coefficient of variation equals

a. 0.30%
b. 30%
c. 5.4%
d. 54%

9. When data are positively skewed, the mean will usually be

a. Greater than the median
b. Smaller than the median
c. Equal to the median
d. positive

10. The variance of a sample was reported to be 144. The report indicated that =
7200. What has been the sample size?
a. 49
b. 50
c. 51
d. 52
11. On a September day, the probability of rain is .30. The probability of a cold day is .50. The
probability of rain and cold weather is .15. Are rain and cold weather an independent
events?
a. Only if given that is rained
b. No
c. Yes
d. Only when they are also mutually exclusive

Exhibit 2 (For Question 12 to 15)

The following data are expenses of 6 students on meal in RM/week

45 74 90 30 56 67
12. The interquartile range is
a. 37.5
b. 44.5
c. 82
d. 90

13. Which statement is CORRECT?

a. 1st Quartile is 37.5, median is 61.5, and 3rd Quartile is 74
b. 1st Quartile is 37.5, median is 61.5, and IQR is 44.5
c. Smallest value is 30, outlier is 90, and upper limit is 148.75
d. Median is 61.5, smallest value id 30 and largest value is 100

14. If P(A) = 0.4, P(B | A) = 0.35, P(A B) = 0.69, then P(B) =

a. 0.14
b. 0.43
c. 0.75
d. 0.59

15. Assume your favorite football team has 2 games left to finish the season. The outcome of
each game can be win, lose or tie. The number of possible outcomes is
a. 2
b. 4
c. 6
d. 9
Section B

Question 1(12 marks)

A government agency has 6,000 employees. The employees were asked whether they preferred a
four-day work week (10 hours per day), a five-day work week (8 hours per day), or flexible hours.
You are given information on the employees' responses broken down by sex.

Male Female Total

Four days 300 600 900
Five days 1,200 1,500 2,700
Flexible 300 2,100 2,400
Total 1,800 4,200 6,000

a. What is the probability that a randomly selected employee is a man and is in favor of a four-
day work week? 2 marks
b. What is the probability that a randomly selected employee is female? 2 marks
c. A randomly selected employee turns out to be female. Compute the probability that she is in
favor of flexible hours. 3 marks
d. What percentage of employees is in favor of a five-day work week? 2 marks
e. Given that a person is in favor of flexible time, what is the probability that the person is
female? 3 marks
f. What percentage of employees is male and in favor of a five-day work week? 2 marks

Question 2(17 marks)

The sales record of a real estate company for the month of May shows the following house prices
(rounded to the nearest $1,000). Values are in thousands of dollars.

105 55 45 85 75
30 60 75 79 95

a. Develop a frequency distribution and a percent frequency distribution for the house prices.
(Use 5 classes and have your first class be 20 - 39.) 5 marks
b. Develop a cumulative frequency and a cumulative percent frequency distribution for the above
data. 5 marks
c. What percentage of the houses sold at a price below $80,000? 1 mark
d. Construct a histogram and ogive 6 marks

Question 3(14 marks)

The Body Paint, an automobile body paint shop, has determined that the painting time of automobiles
is uniformly distributed and that the required time ranges between 45 minutes to 1 1/2 hours.

a. Give a mathematical expression for the probability density function. 3 marks

b. What is the probability that the painting time will be less than or equal to one hour? 3 marks
c. What is the probability that the painting time will be more than 50 minutes? 3 marks
d. Determine the expected painting time and its standard deviation. 5 marks
Question 4 (10 marks)
The time it takes a mechanic to change the oil in a car is exponentially distributed with a mean of 5
minutes.

a. What is the probability density function for the time it takes to change the oil? 2 marks
b. What is the probability that it will take a mechanic less than 6 minutes to change the oil? 2
marks
c. What is the probability that it will take a mechanic between 3 and 5 minutes to change the oil?
4 marks
d. What is the variance of the time it takes to change the oil? 2 marks

Question 5 (10 marks)

It is said that more males register to vote in a national election than females. A research organization
selected a random sample of 300 registered voters and reported that 165 of the registered voters were
male.

a. Formulate the hypotheses for this problem. 2 marks

b. Compute the standard error of . 2 marks
c. Compute the test statistic. 3 marks
d. Using the p-value approach, can you conclude that more males registered to vote than females?
Let = .05. 3 marks