THE INSTITUTE OF FINANCE MANAGEMENT (IFM)

Department of Mathematics
MTU 07203: Business Statistics I
Tutorial Sheet ONE
Statistics solution - 1st June to 21st June, 2020

Question One
a) Refer class notes

b) Refer class notes

c) i) Ratio ii) Ordinal iii) Interval iv) Ratio v) Ratio vi) Ordinal v) Ratio

Question Two
a) Refer class notes

b) Name the sampling method used in each of the following situation;

i) Convenient sampling.
ii) Cluster sampling.
iii) Stratified sampling.
iv) Systematic sampling.
v) Simple random sampling.

Question Three
Refer class notes

Question Four
In a recent issue of the NBAA magazine, 84 accounting conferences were announced. Four conferences
lasted two days. Thirty-six lasted three days. Eighteen lasted four days. Nineteen lasted five days. Four
lasted six days. One lasted seven days. One lasted eight days. One lasted nine days. Let X = length (in
days) of an engineering conference.

1
i) Organize the data in a chart.

Number of days taken by conferences

40
35
30
Conferences

25
20
15
10
5
0
2 3 4 5 6 7 8 9
Days

n+1 th th
90
ii)
Median=
2( ) ( ) value=45 value=4 days
value=
2
th

th th
n+1 90
Q =(
1 ) value=( ) value=22 .5 value=3 days th
4 4
th th
n+1 90
Q =3 (
3 ) value=3 ( ) value=67 . 5 value=5 days th
4 4
th
iii) 65th percentile=( 0 . 65 ( n+1 ) ) value=( 58 .5 )th value=5 days
th th th
iv) 10 percentile=( 0 . 1 ( n+1 ) ) value= ( 9 ) value=3 days
v) The middle 50% of the conferences last from 3 days to 5 days.(first and third quartile)

2
 Days (X) Conferences (f) Fx ( X −X )2 f ( X −X )2
2 4 8 3.8 15.1

3 36 108 0.9 31.8

4 18 72 0 0.1

5 19 95 1.1 21.3

6 4 24 4.2 17

7 1 7 9.4 9.4

8 1 8 16.5 16.5

9 1 9 25.6 25.6

Total 84 331 136.7

Mean=
∑ fx =331 =3. 94 days
vi) ∑ f 84
∑ f ( X− X )2 =1 .28
vii)
viii)
sd=
√ ∑f
Mode = 3 days.
days

ix) I would choose the mode, because most conferences lasted that number of days.

Question Five
i) Range = 89 – 23 = 66
Divide range by 10,
66/10.= 6.6 ,
We choose a class size of 10.

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 Frequency distribution table

f X fX ( X −X )2 f ( X −X )2
20 ― 29 2 24.5 49 1139.1 2278.1

30 ― 39 8 34.5 276 564.1 4512.5

40 ― 49 14 44.5 623 189.1 2646.9

50 ― 59 13 54.5 708.5 14.1 182.8

60 ― 69 23 64.5 1483.5 39.1 898.4

70 ― 79 17 74.5 1266.5 264.1 4489.1

80 ― 89 3 84.5 253.5 689.1 2067.2

Total 80 4660 17075

ii) Draw the histogram and a frequency polygon on the same graph.

Histogram and frequency polygon of data

25

20

15
frequency

10

0
14.5 24.5 34.5 44.5 54.5 64.5 74.5 84.5 94.5
data

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iii) Draw a less than and a more than cumulative frequency curve on the same graph.

More than and less than cumulative frequency curve

90

80

70
cumulative frequencies

60

50 less than
More than
40

30

20

10

0
19.5 29.5 39.5 49.5 59.5 69.5 79.5 89.5
boundaries

Mean=
∑ fx = 4660 =58 . 25
iv) ∑ f 80
n
Median=L+ ( fm
2
−f b
) c

¿ 59. 5+ (40−37
23 ) 10=60 . 8

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 D1
Mode= L+
( D 1 + D2)c

¿ 59. 5+ (1010+6 ) 10=65 . 75

( 20−10
Q1 =39. 5+
14 ) 10=46 . 6
60−37
Q =59. 5+ (
3 )10=69 .5
23
IQR=Q3 −Q1 =69 .5−46 . 6=22. 9

∑ f ( X−X )2 17075
Variance= = =213 . 44
∑f 80
sd=√ Variance=√ 213 . 44=14 . 6

Question Six
a) The median age of the Tanzanian population in 1980 was 16.8 years. In 2020, the median age is 18
years.
i) Aging population.
ii) a) Increase in the standard of living,
b) Decline in fertility rate.
iii) It depends. If the cause of rise in the median age was caused by declining fertility rate,
then its YES, otherwise, if it is caused by increase in the living standard, then that might
not be the case.

b) The most obese countries in the world have obesity rates that range from 11.4% to 74.6%. This data is
summarized in the following table.

i) Best average is median because the data is skewed?

ii) Median =L+(n/2-fb)c/fw = 19.2

The average obese population in the world is 19.2. The US obese population is way above.

iii) 50 – 8 = 42. (42/50=0.84) , The US is in the 84th percentile of the most obese population.

c) Suppose that samples of polythene bags from two manufacturers A and B are tested by prospective
buyers for busting pressure, with the following results

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i)

Bursting Number of Upper Less than Lower More than

pressure bags by boundar cumulative boundary cumulative
(mg) manufacturer y frequency frequency
A B A B A B
4.5 – 9.0 3 6 9.25 3 6 4.25 102 96
9.5 – 14.0 10 13 14.25 13 19 9.25 99 90
14.5 – 19.0 28 16 19.25 41 35 14.25 89 77
19.5 – 24.0 44 28 24.25 85 63 19.25 61 61
24.5 – 29.0 13 22 29.25 98 85 24.25 17 33
29.5 – 34.0 4 11 34.25 102 96 29.25 4 11

ii) Compute the coefficient of mean deviation for company B

Bursting
pressure
Number of
bags by
Class
mark
f bX |X−X| f|X−X|
(mg) manufacturer
A B X
4.5 – 9.0 3 6 6.75 40.5 14.2 85
9.5 – 14.0 10 13 11.75 152.75 9.2 119.2
14.5 – 19.0 28 16 16.75 268 4.2 66.7
19.5 – 24.0 44 28 21.75 609 0.8 23.3
24.5 – 29.0 13 22 26.75 588.5 5.8 128.3
29.5 – 34.0 4 11 31.75 349.25 10.8 119.2
Total 96 2008 541.7

X b=
∑ f b X = 2008 =20 . 917
∑ f b 96

md b=
∑ f b|X− X b|=541. 7 =5. 642
∑ fb 96

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iii)

X a =19 . 985 X b =20. 917

CV a =26 .13 CV b =33 .21

Although B has a bigger mean (showing it can handle much pressure), I will choose A due to its
low coefficient of variation (low variation in bursting pressure).