QBM Revision Questions

1. A tutor’s records show that the numbers of students present during the last ten classes are as
follows: 16, 19, 20, 12, 17, 18, 18, 16, 15 and 18. Organise the data into a relative frequency
histogram using classes starting from 12 to 14.

2. Using the data above, calculate cumulative frequencies and cumulative relative frequencies.
Construct a frequency histogram and a relative frequency histogram.

3. The table below presents the data collected by the program manager for the number of
students absent in classes in the final week of the semester.

4 8 7 5 10 6 12 6 7 3 11 9 9 8 8

a. Construct a frequency, relative frequency, cumulative frequency and cumulative

relative frequency distributions using classes starting from ‘2 to 4’.
b. Construct a frequency polygon.
c. Interpret relative frequency in class ‘6 to 8’.

4. The table below presents the attendance rates and final grades for Business Statistics. Construct
a scatter plot using these data.
Attendance, % 94 85 80 87 91
Final grade, % 89 78 61 77 80

5. The data for the number of cars per household in a small village consisting only of 10
households was collected and recorded below.
1, 2, 2, 5, 2, 6, 4, 3, 5, 4
Find the mean, median and mode for these data. Comment on the shape of the
distribution.

6. Determine the variance, standard deviation, range and coefficient of variation using
data in Question 5.
7. Determine the first, second and third quartiles and the interquartile range for data in
Question 5.

8. Provide a 5-number summary for the data in question 5. Construct a Box-and-whisker

plot. Comment on the shape of the distribution.

9. The table below presents the data for the number of ads seen and the number of colas
consumed by a sample of individuals.
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 Number of Number of
colas consumed ads seen
9 7
7 5
8 6
3 1
8 6
6 3
4 2
7 6
6 4

a. A scatter plot using the data above is constructed below, comment

1. On suitability of Ordinary Least Squares (OLS) method for these data analysis
2. On expected relationship between these variables.
b. Using OLS, determine the slope and the intercept of the line of best fit.
c. Interpret the slope coefficient.
d. Interpret the intercept.
e. Determine and interpret the correlation coefficient.
f. How well the model fits the data?
g. Predict the number of colas consumed for a person who has seen 4 ads.
h. Construct a 95 percent confidence interval for the slope coefficient.
i. Is there sufficient evidence to conclude that there is a positive relationship between the number
of ads and the number of colas consumed?

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 Number of colas Number of ads
consumed seen Number of colas consumed
9 7
10
7 5 9
8 6 8

Number of colas
3 1 7
8 6 6
6 3 5
4 2 4
3
7 6
2
6 4 1
0
SUMMARY OUTPUT 0 1 2 3 4 5 6 7 8

Regression Statistics
Number of ads
Multiple R 0.970837425
R Square 0.942525306
Adjusted R Square 0.934314635
Standard Error 0.498141258
Observations 9

ANOVA
df SS MS F Significance F
Regression 1 28.48520924 28.48521 114.792731 1.35534E-05
Residual 7 1.737012987 0.248145
Total 8 30.22222222

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 2.38961039 0.413280662 5.782052 0.00067583 1.412356913 3.366863866 1.412356913 3.366863866
Number of ads seen 0.912337662 0.085152697 10.71414 1.35534E-05 0.710983529 1.113691795 0.710983529 1.113691795

10. The table below presents the results of the sample of 1,000 households in terms of purchase
behaviour for big-screen TV.

Planned Actually purchased

to
purchase Yes No Total

Yes 200 50 250

No 100 650 750

Total 300 700 1,000

1. Construct probability contingency table

2. What is the probability that a randomly chosen household purchased a big-screen TV?
3. What is the probability that a randomly selected person who purchased a TV, actually planned to do
so?

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11. Out of total 100 employees in a firm, 45 have Diplomas, 50 are females. 10 males have
completed high school. Out of 40 employees with a Bachelor Degree, 20 are females.

1. Construct a frequency contingency table and a probability contingency table.

2. What is a probability that a randomly selected employee completed only high school?
3. What is the probability that a randomly selected employee with a Diploma is a female?
4. What is the probability that a randomly selected male has a Bachelor degree?
5. What is the probability that a randomly selected employee has a Bachelor degree is a male or
both?

12. Consider the return per $1000 for two types of investments and comment.

Probabilit Economic Investment

y Conditio
n X Y

0.2 Recession - $25 - $200

0.5 Stable + $50 + $60

Economy

0.3 Expanding +$100 + $350

Economy

13. Suppose the probability of

purchasing a defective computer is 0.02. What is the probability of purchasing 2 defective
computers in a group of 10?
X = 2, n = 10, and π = .02

14. A Telco company conducts a survey of the age of mobile phones in Bahrain Polytechnic by
approaching 100 students at random and recording the ages (in months) of their mobile
phones. The survey revealed that the sample average was 8.4 months. Construct a 95%
confidence interval for an average age of mobile phones owned by the Polytechnic
students if it is known that the standard deviation of the age of mobile phones is 10
month.

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15. A sample of 16 items revealed that the sample mean was 10. Construct a 90% confidence
interval for the population mean assuming that the population standard deviation is 4.
16. A sample of 25 items revealed that the sample mean and the sample standard deviation
were 10 and 4 respectively. Estimate the population mean with 95% confidence.

17. How large the sample should be if we wish to estimate the population mean within 5 units
with 90% confidence and assuming that the population standard deviation is 20?

18. At the pre-election survey of 200 eligible voters it was found that 108 prefer the Labour
party.
a. Estimate the proportion of votes for the Labour party on the Election Day with
95% confidence.
b. Based on your finding in part (a), is there sufficient evidence that the Labour Party
is going to win the election?

19. A sample of 16 items revealed that the sample mean was 10. Is there sufficient
evidence to conclude that the population mean is less than 11, assuming that the
population standard deviation is 4? Use α = 1%.

20. Business Weekly reported that at the top business schools, the students studied 14.6 hours per
week on average. The program manager wants to compare these results with time spent on
studying at the Business Department at Bahrain Polytechnic. He collected a random sample of 50
students and found that, on average, students spent 12.1 hours and that the standard deviation
was 2 hours. Is there sufficient evidence that Bahrain Polytechnic students study less than the
students at the top business schools at the 5% significance level?

21. The program manager wants to find out how popular QBM is among the Polytechnic
students. He randomly approached 25 students and found that 20 enjoyed the subject.
Is there evidence to conclude that the population proportion of students who like
QBM is more than 75 percent?

Good Luck

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