EXAMINATION PAPER:

Semester 2 2023
Module name Statistics
Module Code STA162
NQF level 5
Date and Time 17 November 2023 – 09:00-11:30
Duration 2 Hours & 30 Minutes
Exam type Closed book
Marks 50

General instructions
1. Complete your personal information on the front cover of the STADIO Examination
Answer Booklet.
2. Ensure you number the answer booklets correctly, in the case where more than one
answer booklet is used, i.e., Book 1 of 2, etc.
3. Use only black or blue pen. Do not use a pencil to answer questions. Pencilled answers
will not be marked.
4. Answer all the questions unless otherwise instructed.
5. Read all questions carefully before attempting to answer.
6. Always number the answers and any sub-question answers the same as the question
numbers in the examination paper.
7. Rough work may be done at the back of the examination book only. All rough work
must be labelled as such.
8. By accepting this examination script, you agree to abide by the STADIO Examination
Rules and Regulations.

STA162
©STADIO [Statistics STA162] [Semester 2 - 2023]
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 Equipment (Closed book)
1. No documents, notes, files, study guides, textbooks, or other materials will be allowed
into the examination.
2. Calculators are permitted.
3. No mobile devices or electronic equipment including smart watches, laptops, iPads,
Kindles, etc. will be allowed on your person or at your desk during the examination.
4. No borrowing or lending of any examination material and/or stationery will be
permitted.
5. A formula sheet is included at the end of the paper.
6. Additional blank paper will be provided for calculations.

DO NOT TURN THIS PAGE UNTIL INSTRUCTED TO DO SO.

©STADIO [Statistics STA162] [Semester 2 - 2023]

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SECTION A

Select the correct answer and write down only the sub-question number and next to it the
letter that represents the answer you have selected.
For example: 1. D

Question 1 (1 Mark)

Identify the skewness in the following diagram.

A) Positively skewed
B) Negatively skewed
C) No Skewness

Question 2 (1 Mark)

Identify which sampling method is used if one member of a population is identified and asked
to identify other members of the target population.

A) Quota sampling
B) Snowball sampling
C) Judgement sampling
D) Convenience sampling

Question 3 (1 Mark)

If the correlation coefficient between two variables is -0,24. The relationship between the two
variables can best be described as a:

A) strong positive relationship

B) strong negative relationship
C) weak positive relationship
D) weak negative relationship

©STADIO [Statistics STA162] [Semester 2 - 2023]

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Question 4 (1 Mark)

A Discovery call centre asks its callers to rate the service that they received on a scale of 1 to 5,
where 1 = very poor and 5 = excellent. The results will be used to determine the overall quality
of service that the call centre provides. Identify the category into which this falls.

A) Descriptive statistics
B) Statistical modelling
C) Inferential statistics

Question 5 (1 Mark)

Identify which of the following can influence the quality of data:

A) Data type
B) Data source
C) Method of data collection

Question 6 (1 Mark)

Identify whether the statement below is true or false. The statement is based on the following
Venn diagram:

The above sets A and D are mutually exclusive.

A) True
B) False

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Question 7 (1 Mark)

Choose which of the following is considered secondary data for a company such as Woolworths.

A) Data obtained from sales invoices from the accounting system

B) Data obtained from a Woolworths monthly customer survey
C) Data obtained from a monthly sales report compiled by the Woolworths sales manager

Question 8 (1 Mark)

Identify whether the statement below is true or false. The statement is based on the following
Venn diagram:

The above set C is a subset of set B.

A) True
B) False

Question 9 (1 Mark)

The following table represents the preference of shoppers for cell-phone brands per month:
Cell-phone brand Number of shoppers’ preference
Samsung 440
Apple 310
Huawei 150
TOTAL 900

Identify the type of table shown above.

A) Numeric frequency table

B) Categorical frequency table
C) Cross-tabulation table
D) Contingency table
©STADIO [Statistics STA162] [Semester 2 - 2023]
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Question 10 (1 Mark)

Suppose that a company makes 75 products, and must select any three (3) products to showcase
at a conference.

Identify the correct way to calculate how many different groupings of three (3) products they
could show.
75!
A)
3!(75−3)!
3!
B)
3!(75−3)!
75!
C)
75!(75−3)!
75!
D)
75!(75−3)!

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SECTION B

Question 1 (6 Marks)

A retail store is conducting an experiment to determine how many customers enter the store
and purchase any product on a given day. One of the store managers estimates that the
probability of any customer entering the shop and purchasing any product is 0.40. A sample of
nine customers was used in the experiment for the month of November.

Calculate the following probabilities and show all calculations clearly:

1.1 The probability that exactly two customers make a purchase (2)
1.2 The probability that none of the customers makes a purchase (2)
1.3 The probability that at most, one customer makes a purchase (2)

Question 2 (8 Marks)

Answer the following questions based on the given set of data extracted from a Financial
Management class test at STADIO (the test was out of 50 marks and a sample of 10 students
were selected):
Student Mark
A 25
B 40
C 35
D 18
E 22
F 50
G 30
H 15
I 22
J 34

2.1 Calculate the mean of the above data. (2)

2.2 Calculate the standard deviation of the above data. (5)
2.3 What is the mode of the above data? (1)

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Question 3 (8 Marks)

The manager of a restaurant wants to analyse the amount customers spent on average on one
of the new items on their menu. Using a random sample, the sample mean spend was found to
be R220 with a sample standard deviation of R30.

3.1 Estimate the 95% confidence interval of the actual mean spend on the new menu item,
assuming that the sample comprised 36 customers. (4)
3.2 Estimate the 95% confidence interval of the actual mean spend on the new menu item,
assuming that the sample comprised 51 customers. (4)

Question 4 (3 Marks)

The table below shows a sample of the company sizes and the industries of 280 JSE-listed
companies.
Industry Company size Column total
Small Medium Large
Retail 48 15 27 90
Mining 30 95 65 190
Row total 78 110 92 280

Based on the above data, if a company is selected at random, determine the probability of
selecting the following companies. Show all calculations where necessary.

4.1 A retail company (1)

4.2 A medium-sized company (1)
4.3 A large company in the mining industry (1)

©STADIO [Statistics STA162] [Semester 2 - 2023]

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SECTION C

Question 1 (15 Marks)

The South African Reserve Bank has increased the repurchase rate (repo rate), which ultimately
increased the prime lending interest rate and the cost of borrowing for clients applying for
credit.

You have been appointed as a bank analyst to find out whether there is a relationship between
the increasing interest rates and the number of new home-loan applications.

Use the historical data below to answer the questions that follow.
Prime Number of home-loan
lending interest rate applications
(%) (no. of clients)
5.5 5 110
7 2 090
7.5 1 367
8 1 427
9 1 597
10.25 1 701
10.5 799
11 850
11.75 920
12 670
12.25 512
14.5 798

1.1 Using simple linear regression analysis, calculate and formulate a simple linear regression
equation to identify the constant and the slope of the linear regression equation. (Your
answer must be in the format y = a + bx, where a represents the y-intecept/constant and
b the slope/gradient of the linear regression line.) (9)

1.2 Explain the relationship between the two variables (Prime lending interest rate and
Number of home-loan applications) based on the simple linear regression line that you
have calculated in Question 1.1. (1)

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1.3 Calculate the correlation coefficient for the above data. (4)

1.4 Explain the relationship between the two variables (Prime lending interest rate and
Number of home-loan applications) based on the correlation coefficient. (1)

Examination Total: 50 marks

©STADIO [Statistics STA162] [Semester 2 - 2023]

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 STATISTICS (STA 162)
FORMULA SHEET: SUMMATIVE ASSESSMENT

Sample statistic Population parameter Standard normal distribution

to be estimated (𝑧𝑧) formula used for statistical
inference
Sample mean Population mean 𝑥𝑥̅ − 𝜇𝜇
𝑧𝑧 = 𝜎𝜎
𝑥𝑥̅ 𝜇𝜇 � 𝑛𝑛
√
Sample proportion Population proportion 𝑝𝑝 − 𝜋𝜋
𝑧𝑧 =
𝑝𝑝 𝜋𝜋 �𝜋𝜋(1 − 𝜋𝜋)
𝑛𝑛
Difference between Difference between (𝑥𝑥̅1 − 𝑥𝑥̅2 ) − (𝜇𝜇1 − 𝜇𝜇2 )
𝑧𝑧 =
two sample means two population means 𝜎𝜎 2 𝜎𝜎 2
(𝑥𝑥̅1 − 𝑥𝑥̅2 ) (𝜇𝜇1 − 𝜇𝜇2 ) � 1 + 2
𝑛𝑛1 𝑛𝑛2

Difference between Difference between (𝑝𝑝1 − 𝑝𝑝2 ) − (𝜋𝜋1 − 𝜋𝜋2 )

𝑧𝑧 =
two sample two population 1 1
�𝜋𝜋�(1 − 𝜋𝜋�)( + )
𝑛𝑛1 𝑛𝑛2
proportions proportions
𝑥𝑥1 +𝑥𝑥2 𝑥𝑥1 𝑥𝑥2
(𝑝𝑝1 − 𝑝𝑝2 ) (𝜋𝜋1 − 𝜋𝜋2 ) where 𝜋𝜋� = , 𝑝𝑝1 = , 𝑝𝑝2 =
𝑛𝑛1 +𝑛𝑛2 𝑛𝑛1 𝑛𝑛2

Lower confidence limit Upper confidence limit

𝜎𝜎 𝜎𝜎
𝑥𝑥̅ − 𝑧𝑧 𝑥𝑥̅ + 𝑧𝑧
√𝑛𝑛 √𝑛𝑛

Lower confidence limit Upper confidence limit

𝑠𝑠 𝑠𝑠
𝑥𝑥̅ − 𝑡𝑡 𝑥𝑥̅ + 𝑡𝑡
√𝑛𝑛 √𝑛𝑛

Lower confidence limit Upper confidence limit

𝑝𝑝(1 − 𝑝𝑝) 𝑝𝑝(1 − 𝑝𝑝)

𝑝𝑝 − 𝑧𝑧� 𝑝𝑝 + 𝑧𝑧�
𝑛𝑛 𝑛𝑛

©STADIO [Statistics STA162] [Semester 2 - 2023]

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 Hypotheses for single population mean
Lower-tail test Two-sided test Upper-tail test
H0: 𝜇𝜇 ≥ 𝑘𝑘 H0: 𝜇𝜇 = 𝑘𝑘 H0: 𝜇𝜇 ≤ 𝑘𝑘
H1: 𝜇𝜇 < 𝑘𝑘 H1: 𝜇𝜇 ≠ 𝑘𝑘 H1: 𝜇𝜇 > 𝑘𝑘

Test statistics for differences in means for independent samples

Population standard deviation is Population standard deviation is
known unknown
𝑥𝑥̅ − 𝜇𝜇 𝑥𝑥̅ − 𝜇𝜇
𝑧𝑧-𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 = 𝜎𝜎 𝑡𝑡-𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 = 𝑠𝑠
√𝑛𝑛 √𝑛𝑛

Hypotheses a single population proportion

Lower-tail test Two-sided test Upper-tail test
H0: 𝜋𝜋 ≥ 𝑘𝑘 H0: 𝜋𝜋 = 𝑘𝑘 H0: 𝜋𝜋 ≤ 𝑘𝑘
H1: 𝜋𝜋 < 𝑘𝑘 H1: 𝜋𝜋 ≠ 𝑘𝑘 H1: 𝜋𝜋 > 𝑘𝑘

Test statistic for single population proportion

(𝑝𝑝 − 𝜋𝜋)
𝑧𝑧-𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 =
�𝜋𝜋(1 − 𝜋𝜋)
𝑛𝑛

Hypotheses for differences in means for independent samples

Lower-tail test Two-sided test Upper-tail test
H0: 𝜇𝜇1 – 𝜇𝜇2 ≥ 0 H0: 𝜇𝜇1 – 𝜇𝜇2 = 0 H0: 𝜇𝜇1 – 𝜇𝜇2 ≤ 0
H1: 𝜇𝜇1 – 𝜇𝜇2 < 0 H1: 𝜇𝜇1 – 𝜇𝜇2 ≠ 0 H1: 𝜇𝜇1 – 𝜇𝜇2 > 0

Test statistics for differences in means for independent samples

Population standard deviations Population standard deviations
known unknown, assumed equal
(𝑥𝑥̅1 − 𝑥𝑥̅2 ) − (𝜇𝜇1 − 𝜇𝜇2 ) (𝑥𝑥̅1 − 𝑥𝑥̅2 ) − (𝜇𝜇1 − 𝜇𝜇2 )
𝑧𝑧-𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 = 𝑡𝑡-𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 =
1 1
𝜎𝜎 2 𝜎𝜎 2 �𝑠𝑠𝑝𝑝2 � + �
𝑛𝑛 𝑛𝑛
� 1 + 2 1 2
𝑛𝑛1 𝑛𝑛2

where 𝑠𝑠𝑝𝑝2 is the pooled variance,

defined as

(𝑛𝑛1 − 1)𝑠𝑠12 + (𝑛𝑛2 − 1)𝑠𝑠22

𝑠𝑠𝑝𝑝2 =
𝑛𝑛1 + 𝑛𝑛2 − 2

©STADIO [Statistics STA162] [Semester 2 - 2023]

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The different hypotheses and test statistic for the differences in means for
dependent samples are summarised below:

Hypotheses for differences in means for dependent samples

Lower-tail test Two-sided test Upper-tail test
H0: 𝜇𝜇𝑑𝑑 = 0 H0: 𝜇𝜇𝑑𝑑 ≤ 0 H0: 𝜇𝜇𝑑𝑑 ≥ 0
H1: 𝜇𝜇𝑑𝑑 ≠ 0 H1: 𝜇𝜇𝑑𝑑 > 0 H1: 𝜇𝜇𝑑𝑑 < 0

Test statistic for the differences in means for dependent samples

(𝑥𝑥̅𝑑𝑑 − 𝜇𝜇𝑑𝑑 )
𝑡𝑡-𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 = 𝑠𝑠 𝑑𝑑
√𝑛𝑛

where
𝑥𝑥𝑑𝑑 is the difference between pairs: 𝑥𝑥𝑑𝑑 = 𝑥𝑥1 − 𝑥𝑥2
∑ 𝑥𝑥𝑑𝑑
𝑥𝑥̅𝑑𝑑 is the average of the paired differences: 𝑥𝑥̅𝑑𝑑 =
𝑛𝑛

∑(𝑥𝑥𝑑𝑑 − 𝑥𝑥̅ 𝑑𝑑 )2
𝑠𝑠𝑑𝑑 is the standard deviation of the paired differences: 𝑠𝑠𝑑𝑑 = � 𝑛𝑛−1

The slope and intercept coefficients

𝑛𝑛 ∑ 𝑥𝑥𝑥𝑥−∑ 𝑥𝑥 ∑ 𝑦𝑦 ∑ 𝑦𝑦−𝑏𝑏1 ∑ 𝑥𝑥
𝑏𝑏1 = 𝑏𝑏0 =
𝑛𝑛 ∑ 𝑥𝑥 2 −(∑ 𝑥𝑥)2 𝑛𝑛

Pearson’s correlation coefficient

𝑛𝑛 ∑ 𝑥𝑥𝑥𝑥 − ∑ 𝑥𝑥 ∑ 𝑦𝑦
𝑟𝑟 =
�[𝑛𝑛 ∑ 𝑥𝑥 2 − (∑ 𝑥𝑥)2 ] × [𝑛𝑛 ∑ 𝑦𝑦 2 − (∑ 𝑦𝑦)2 ]

©STADIO [Statistics STA162] [Semester 2 - 2023]

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