2405/3204 APPLIED STATISTICS ‘Oct/Nov. 2018 Time: 3 hours ‘THE KENYA NATIONAL EXAMINATIONS COUNCIL DIPLOMA IN APPLIED STATISTICS. APPLIED STATISTICS 3 & INSTRUCTIONS TO CANDIDATES RY You shoul have the fallowing fortis P2amination: Answer bookler, Mathematical tables; Non programmable scientific calculator Table of Normal distribution is attached. This paper consists of EIGHT questions, Answer any FIVE questions in the answer bookfet provided, All. questions carry eqwe! marks. ‘Meccimum: marks for each part of a question are indicated. All working MUST be clearly shown, Candidates should answer the questions in English. This paper consists of 6 printed pages. ‘Candidates should check the question paper to ascertain that all the pages are printed as indicated and that ne. questions are missing. Turn over tat lai - ©.2098 The Kenya Nikonal xeeinatons Cound(a) {b) (a) (b) «) Explain four sampling techniques used in data collection. “The following data shows the net ourput of a certain manufacturing industry. Number of firms Net output (in millions) 210 16 wt 208 oO 36 18 / 30 28 20, 29 10 ago st @ construct the Lorenz Curve: i) comment on the level of distribution in the output. ‘(12 marks) Highlight four difficulties namie computation of index numbers. (8 marks) ‘Table 1 shows the prices and aL Ties commodities in-a certain region from the ycar 2012 and ook © a ee Eaee e Caleulate: (0 Laspeyie’s quantity inden; ae re) ‘ (ii) Paasche"s quantity i Bets (ii) Fisber'sideat quanti index. ay (11 marks) ‘Comment on the results obtained in bili). (1 mark)(@) With reference to acceptance sampling, disdnguish between each of the following pairs of terms: (i) lar tlerance and acceptance quality level; producer's risk and consumer's risk, (8 marks) (b) The following data indicates the number of items inspected and the defectives found. Sample Number Number of Items Number of Inspected Detectives found 200 210 215. 24 £ ee m0 240, BE SGe Sou a olee (i) Construct the fractional defective chart, (ii) Comment whether the production process is under control or not. (12 marks) Explain four precautions that should be taken when drafting questionnaire. z {8 marks) ‘An investor intends to invest in either stock P or Q listed on the securities exchange of a certain country. The data in table 2 relates to the price behaviour of the two stocks for the past 100 days.(i, (iii) standard deviation; ipe? Coefficient of variation, (1 marks) Using the resnits obtained in ae. the investor on which stock fo invest in. (l mark) eae (8 marks) ‘Table 3 shows the production in thousands of tonnes of commodity ¥ by a company for a period of eight years, ‘Table 3, ‘Year 1990 [1991 [iss2 i994 [1905 [1956 11997 | A Production‘ooo'| 36 | 48 | s7 | oo | oo [ 08 | 72 [per | a) di) Using the method of least squares, détermine the trend equation. Estimate the production volume forthe year 2000, (12 marks} Explain five benefits. country may derive from participating in international trade. (20 marks) ~ Table 4 shows the weekly rent of 320 houses.{ay (oy te) (a) (b) © bis geaee 3 = iS (@) Draw an ogive for the Frequency distribution; (ii) Estimate the median rent foe ogive. (10 marks) we Distinguish between Gross Dejnestic Product and Gross National Product, (4-marks) Outline five: 2, (2) jmportance of national income statistiess (ii) disadvantages of free international trade. (10 marks) ‘Stare three: @) causes of income inequality; " Gi) effects of income inequality. (6 masks) ‘Outline six benefits of statistical quality control (Gmmarks) A sample of 1000 flourescent light tubes from the Short Life Tube company has a mean life of 205 hours-and a standard deviation of 1.6 hours, Test, at 1% level, whether the sample comes from a popalation with mean of 23.2 hours. (-mmarkes) ‘Outline five benefits of over-population to a country, (5 marks) Sate dePascial areas under standardised normal curve O4ase $4533 0.4664 0.4732 ares 0.4894 am o4501 04925 Qasos| Gass] 4999 aos aor ota O1SNT 0.79 cain 0.9545, ohn tue bias O62. 03830 04015 oantt sang ue : B76 OAT o4siT 0.4437 oeRs0 04536 1835 e 4352 4964 esa o4g81 gE 0.4330 04353 04233 04997 oassa 4998 | 0.4999 5.4999 | 0.4999 | a ross 0.4899 | esas | acsoy 94993] 00998) 01993, 8060 ‘6.30001 «5000 | «3000