LDP 609-Revision Questions. Statistics PDF
LDP 609-Revision Questions. Statistics PDF
LDP 609-Revision Questions. Statistics PDF
UNIVERSITY OF NAIROBI
REVISION QUESTIONS FOR LDP 609: STATISTICAL METHODS
Abiud Masinde
BED (UON) MSC (UON), MSC (Leeds-UK), PhD (fellow) (UON), [email protected] -0723620073
30 - 35 15 10 15
i) Based on the value of the combined mean wage, which of the three branches has a
mean wage higher than the combined mean wage?
ii) Compute the combined standard deviation.
8) The life time distribution for a sample of 1000 electronic components produced by Chege and Ouma
Industries is shown in the following table:
Life time (hours) No. of electronic components
Less than 2000 90
2000 and less than 2020 122
2020 and less than 2040 135
2040 and less than 2060 160
2060 and less than 2080 175
2080 and less than 2100 124
2100 and less than 2120 110
2120 and more 84
(i) Compute quartile coefficient of skewness for the given distribution and comment on
the result. State clearly any assumptions made before starting the calculations.
(ii) Compute quartile coefficient of variation for the given distribution
9) The following table gives the distribution of wages (£) in two branches of a factory.
Daily wages(£) Branch A Branch B
10-15 14 15
15-20 18 22
20-25 20 26
25-30 23 10
30-35 10 12
Required:
Compute quartile coefficient of skewness for the distribution and comment on the result.
14) Explain the following:
i) Geometric mean
ii) Safety stock
iii) Simplex method
iv) Kurtosis
v) Mutually exclusive
15) Pearson's coefficient of Skewness of a distribution is 0.5 and the coefficient of variation is 40%. Its mode is
80. Find mean and median if the distribution.
16) Pearson's measure of skewness of a distribution is 0.5. Its median and mode are respectively 42 and 36.
Find the coefficient of variation.
17) For a moderately skewed data, the mean is 200, the coefficient of variation is 8 and Karl Pearson's coefficient
of skewness is 0.3. Find the mode and the median.
Use the rank correlation to gauge which pair of judges have the nearest approach to common likings in
voice
4) In Kenya's industrial sector 10 new products have been developed. The cost of developing these
products and the corresponding sales revenue are shown in the following table.
Product P1 P2 P3 P4 P5 P6 P7 P8 P9 P10
Development cost (Sh M) 24 23 25 14 21 18 22 21 19 20
Sales Revenue (Sh M) 47 49 57 33 43 35 44 46 40 44
(i) Find the regression of sales revenue on development cost and estimate its sales revenue if
the development cost of a product is 27M (Sh).
(ii Compute the coefficient of correlation between the two variables and comment.
5) The weight and height values of ten school boys are shown in the table below.
Boy 1 2 3 4 5 6 7 8 9 10
Weight (Kg) 35 30 38 42 45 41 40 38 39 44
Height (Cm) 138 135 142 148 153 140 143 140 141 150
Compute the Spearman Rank Correlation Coefficient between height and weight of the boys and
comment on the result.
6) The table shows the number of people employed in10 small factories and their annual sales in thousands
Firm A B C D E F G H J K
No. of workers 60 25 65 48 35 28 75 50 45 85
Total sales 250 160 108 151 85 96 151 273 241 290
Calculate the Spearman Rank correlation coefficient and comment.
7) In Kenya's industrial sector 10 new products have been developed. The cost of developing these products
and the corresponding sales and revenue are shown in the following table:
Product P1 P2 P3 P4 P5 P6 P7 P8 P9 P10
Development Cos (sh. M) 24 23 25 14 21 22 21 18 19 20
Sales Revenue (Sh. M) 47 49 57 33 43 44 46 35 40 44
(i) Fit the regression of sales revenue in development cost and estimate sales revenue
given a development cost of 22.8M (sh.)
(ii) Compute the coefficient of determination and comment.
8) The advertising expenditure and corresponding sales revenue for 10 firms is shown in the following table.
Firm F1 F2 F3 F4 F5 F6 F7 F8 F9 F10
Advertising expenditure (shm) 12 14 17 13 11 15 20 18 21 19
Sales Revenue (shm) 27 31 38 29 26 30 43 39 42 40
(i) Find the regression of sales revenue on advertising expenditure.
(ii) If a firm spends sh 16m on advertising, estimate its sale revenue.
(iii) Compute correlation coefficient between the advertising expenditure and sales
revenue. Comment on the result.
9) The weight and height distribution of 10 project planning and management class students are shown in
the following table:
Student
Weight (kg) 69 80 75 82 72 70 65 76 66 78
Height (cm) 168 183 176 175 170 165 160 173 164 180
(i) Find the regression of height on weight
(ii) If a student has a height 166 cm, estimate the weight.
(iii) If a student has weight 71 kg, estimate the height.
(iv) Compute coefficient of correlation between height and weight of student. Interpret
the results.
10) The advertising expenditure and sales revenue for ten business firms as shown below:
Firm 1 2 3 4 5 6 7 8
Advertising Ex. (Ksh.000) 57 54 49 42 38 32 30 24
Sales Revenue (Ksh000) 113 111 107 103 100 96 94 84
Required
i) Find the regression equation of sales in advertising expenditure and estimate the
sales revenue of the business firms if advertising expenditure is Kshs. 26, 000.
ii) Find the coefficient of determination and briefly comment on it.
11) The following data on average Rent and Rates for a selected estate in Western Province. Compute
Spearman's rank correlation coefficient and interpret it.
Rate 1.68 1.46 1.57 13.37 3.18 1.95 1.07 1.71 1.22 6.46
(x)
Rent 3.81 4.19 4.87 22.85 6.85 6.48 2.66 6.49 5.33 15.23
(y)
12) Outline any two merits of the Spearman rank correlation coefficient.
13) Explain, why for a given set of data values, we have two regression lines?
Using 2013 as base, compute Laspeyre's and Pasche'-sprice and quantity index numbers. Comment
on the results. (7 Marks)
2) Define Fisher's index numbers and explain their utility. (3 marks)
3) How are index numbers constructed? What is their purpose? The following are index numbers of the
prices (Base 1962 = 100)
Year 1970 1971 1972 1973 1974 1975 1976 1977
Index Numbers 140 200 210 230 250 260 280 300
Using 2010 as base, calculate Laspyre's and Paasche’s Price and Quantity index numbers for 2015.
Comment on the result.
5) Given the following data of four commodities.
Commodity Base year Current year
Price Quantity Price Quantity
A 12 10 15 12
B 15 7 20 5
C 24 5 20 9
D 5 16 5 14
Show how the Fischer's Price index number satisfies the time reversal test.
A 50 10 72 12
B 84 12 80 8
C 80 8 96 8
D 20 5 30 6
E 56 7 64 8
Compute Fischer's price and quantity index numbers for 2016, using 2012 as base year.
Comment on the results.
9) Compute the Laspyre’s and Paasche’s price and quantity index number for 2005 with 1995 as the base
year.
1955 2005
Commodity Quantity Commodity Quantity Commodity
A 50 350 60 420
B 120 600 140 700
C 30 330 20 200
D 20 360 15 300
E 5 40 5 50
10) Comment on Laspyre's and Paasche's price index numbers in terms of consumer's basket.
11) Explain any two problems associated with the construction of index numbers.
Quarter
Year I II III IV
2013 20 16 14 17
2014 22 17 15 19
2015 23 18 16 20
2016 24 19 17 21
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales (in Ksh m) 48 55 63 65 72 84 90 87 82
8) The amount of cotton grown (Kg.000) in a country during 2013 to 2016 is shown in the following table:
Quarter
Year I II III IV
2013 25 22 24 27
2014 28 23 25 29
2015 30 25 27 31
2016 32 27 29 33
9) The amount of cotton grown in the country during 2011 to 2014 is shown in the following table. Cotton
Grown (kg,000)
Quarter
Year I II III IV
2013 25 22 24 27
2014 28 23 25 29
2015 30 25 27 31
2016 32 27 29 33
10) Wheat grown in the country during 2013 to 2016 is shown in the following table:
Quarter I II III IV
Year
2013 5 5.2 6 4.9
2014 5.3 5.6 6.1 5.1
2015 5.8 5.9 6.4 5
2016 6 6.2 6.7 5.3
Year 3 Year 4
Quarter 1 2 3 4 1 2 3 4
Sales 40 35 120 80 80 75 150 100
Calculate the trend values using a 2 month centered moving average method.
Production Requirements
Department A B c Capacity of the department _(Hours)
Assembling 3 4 5 40,000
Grinding 2 3 4 36,000
Finishing 1 2 3 24,000
Profit Contribution (K£) 30 45 38
Required- construct the linear programming model that would maximize the profit
contribution from the given information (5 Marks)
2) Describe Linear Programming and explain basic requirements for employing it.
3) International Business Group based in Mombasa is producing two chemicals Xnol and Ynol for the
regional market. Each chemical has to go through two processes of mixing and packaging. The time
required for a unit of each chemical and available weekly capacity of each process is shown in the
following table.
Unit Resource Requirements ( Hours)
Process Xnol Ynol Available weekly capacity
Mixing 4 3 48
Packaging 1 2 22
In addition the maximum weekly demand for Xnol is 9 units. The profit contribution for each unit of
Xnol is £80 and Ynol is £70.
Formulate a standard Linear Programming model and solve it using the graphical method to
determine the number of units of each chemical produced per week to maximize profit.
4) Nairobi Industries Limited manufacture three items A, B and C. The production requirements per unit of
these items and capacities of three departments are shown as follows:
Production requirements
Department A B C Capacity of the department (Hours)
Assembling 2 3 4 32,000
Painting 1 2 3 37,500
Finishing 3 2 3 29,000
Profit contribution ($) 20 50 40
Required- Construct the linear programming model that would maximize the profit
contribution from the given information.
5) Describe Linear programming and explain various application areas.
6) Simwa and Otachi Industries manufacture these products P1, P2 and P3 that go through three
departments of grinding, assembling and packaging. The relevant information is shown in the following
table:
P1 P2 P3 Capacity
Grinding 3 5 4 25
Assembling 4 6 5 28
Packaging 2 3 1 16
Profit contribution (Shs) 500 600 450
The number of machine hours required for each unit of the respective product is given below
The unit profit would be Shs.20; Shs.6; and Shs. 8 respectively for products A, B and C.
Formulate a linear programming model to determine the number of units or each product the firm
should produce in order to maximize profit.
Draw the network for the project, identify the critical path and determine the project
duration. (6 marks)
2) A project consists of nine activities for which relevant information is shown in the following table:
Activity Preceding Activities Duration ( Months)
A - 10
B A 6
C A 5
D B 7
E C 6
F D 9
G E,F 4
H G 3
I H,D 6
Draw the network for the project and calculate the project duration. Indicate e.e.t and l.e.t on each node.
3) A project consists of nine activities for which the relevant information is given as follows:
Activity A B C D E F G H I
Preceding Activity - - A B C D,E F G,C H,F
Duration (months) 4 5 6 7 4 5 4 6 3
Draw the network for the project. Identify the critic path and determine the project duration.
4) A project consists of nine activities for which the relevant information is given as follows:
Activity A B C D E F G H I
Preceding Activity - - A B C D,E F G,C H,F
Duration (months) 4 5 6 7 4 5 4 6 3
Draw the network for the project. Identify the critical and determine the project duration.
5) A project consists of 9 activities for which the relevant information is given in the following table:
Activity A B C D E F G H I
Proceeding activities - A - B B C,E D,F C,G H
Duration (weeks) 5 4 8 3 4 5 2 3 5
Draw the network for the project. Identify the critical path and determine the project duration.
6) A business group plans to initiate a project to study the feasibility of a new product. The activities to be
carried out to complete the feasibility project are given as follows:
Activity Proceeding activity Expected duration (weekly)
A Basic design - 6
B Market research - 4
C Obtaining Engineering Quotes A 2
D Constructing prototype A 6
E Prepare marketing material A 4
F Costing D,E,B,C 6
Draw the network for the project. Identify the critical path and determine the expected project deviation.
6) Meme industries sell electrical appliances whose annual demand is 9, 500 units. Each item costs £50
and each time an order is placed, Meme incurs s cost of £90. Inventory holding is estimated at 5% of
average inventory per unit. Given that no lead time is allowed and a year has 52 weeks.
7) Njui and Weke Industries require 2000 items per month for its consumption. Each item costs K$45 and
the cost of capital is 10% p.a. A fixed change of placing an order is K$135. Calculate the economic order
quantity for the firm that would minimize the total inventory cost. Find the total inventory cost.
8) Define a model and explain its classification. Describe the applications of models in project planning.
9) Rono and Mutiso Industries 6000 items per month for its consumption. Each item costs Sh.240 and
fixed ordering cost is Sh.960 per order. The cost of capital is 10% per annum.
1) At the College of Education and External Studies, 32% of the students are doing Project Planning and
Management (PPM) degree. Six students from the College are selected at random. What is the
probability that among the selected students:
(i) 3 are doing PPM
(ii) At least one is doing PPM
(iii) At most 5 are doing PPM
2) In an organization 26% employees are with MBA qualification. Seven employees are to be selected
at random for overseas posting. What is the probability that out of the selected employees: (i) 3 are
having MBA qualification (ii) at least one is with MBA qualification and (iii) at most 6 are with MBA
qualification.
3) At the college of External Studies 37% students are doing Project Planning and
Management (PPM) degree. Ten students are selected at random from the college, What
is the probability that among the selected students:
B. Normal distribution
6) The length distribution of widgets manufactured by ABC Industries Ltd. is normally distributed with
mean 100cm and variance of 64cm. If the firm produces 10, 000 such widgets per month, how many
widgets produced per month would be of length?
(i) Less than 92 cm
(ii) More than 120cm
(iii) Between 86 cm and 96cm
(iv) Between 84 cm and 112 cm
7) A tire company has invented a revolutionary new product. In order to overcome consumer
resistance, a mileage guarantee is offered with the tire. Road tests suggest that the mean life of the
tire is 42, 000 miles, with a standard deviation of 4, 000 miles. The tests suggest that the tire life if
normally distributed.
Required:
i) What percentage of tires will last for more than 45, 000 miles?
ii) What percentage of tires will have a life between 32, 000 miles and 37, 000 miles?
iii) What should the guaranteed mileage be if the firm wishes to replace no more than
4 percent of its tires?
8) The height of experimental plants is normally distributed with mean 120cm and standard deviation
of 10cm. What is the probability of randomly selected plant to have a height
(i) Less than 100cm
(ii) Between 115cm and 132cm
(iii) More than 138cm
9) The life time of elective bulbs manufactured by Chege and Ouma Industries is normally
distributed with mean of 500 hours and standard deviation of 60 hours. A bulb has been
selected at random from the production, what is the probability that it will have life time?
(i) Less than 430 hours
(ii) Between 480 hours and 540 hours
(iii) More than 650 hours
10) East Africa Industries produce tires whose life time is normally distributed with mean of 50, 000 kms
and standard deviation of 5000 kms, what is the probability that the life of a tire is:
(i) Less than 52, 000 km
(ii) Between 47, 000 km and 55, 000 km
(iii) More than 44, 000 km
11) The marks of students in a certain examination are normally distribution with mean marks as 40%
and standard deviation as 20%. On this basis, 60% of students failed. The result was moderated and
70% students passed. Find the pass marks before and after the moderation.
12) University of Nairobi Research Farm grows plants whose height is normally distributed with mean
150 cm and standard deviation of 18 cm. A plant is selected at random, what is the probability that
its height would be
i) Less than 140 cm
ii) More than 168 cm
ii) Between 142 cm and 162 cm
2. A researcher claims that the average cost of men’s athletic shoes is less than $80. He selects
a random sample of 36 pairs of shoes from a catalog and finds the following costs (in dollars).
(The costs have been rounded to the nearest dollar.) Is there enough evidence to support the
researcher’s claim at a = 0.10? Assumepopulation std= 19.2. (pg 415)
60 70 75 55 80 55
50 40 80 70 50 95
120 90 75 85 80 60
110 65 80 85 85 45
75 60 90 90 60 95
110 85 45 90 70 70
3. The Medical Rehabilitation Education Foundation reports that the average cost of
rehabilitation for stroke victims is $24,672. To see if the average cost of rehabilitation is
different at a particular hospital, a researcher selects a random sample of 35 stroke victims
at the hospital and finds that the average cost of their rehabilitation is $25,226. The standard
deviation of the population is $3251. At a = 0.01, can it be concluded that the average cost of
stroke rehabilitation at a particular hospital is different from $24,672? (pg 416)
5. A medical investigation claims that the average number of infections per week at a hospital
in southwestern Pennsylvania is 16.3. A random sample of 10 weeks had a mean number of
17.7 infections. The sample standard deviation is 1.8. Is there enough evidence to reject the
investigator’s claim at a = 0.05? (pg 427)
6. An educator claims that the average salary of substitute teachers in school districts in
Allegheny County, Pennsylvania, is less than $60 per day. A random sample of eight school
districts is selected, and the daily salaries (in dollars) are shown. Is there enough evidence to
support the educator’s claim at a = 0.10? (pg 430) ExamQ 19
60 56 60 55 70 55 60 55
7. A physician claims that joggers’ maximal volume oxygen uptake is greater than the
average of all adults. A sample of 15 joggers has a mean of 40.6 milliliters per kilogram (ml/kg)
and a standard deviation of 6 ml/kg. If the average of all adults is 36.7 ml/kg, is there enough
evidence to support the physician’s claim at a = 0.05? 9pg 432)
Testing the Difference between Two Means, Two Proportions, and Two Variances
13. A researcher hypothesizes that the average number of sports that colleges offer for males is
greater than the average number of sports that colleges offer for females. A sample of the
Males Female
s
6 11 11 8 15 6 8 11 13 8
6 14 8 12 18 7 5 1 14 6
6 9 5 6 9 6 5 35 7 6
6 9 18 7 6 10 7 6 5 5
15 6 11 5 5 16 10 7 8 5
9 9 5 5 8 7 5 5 6 5
8 9 6 11 6 9 18 1 7 10
9 5 11 5 8 7 8 35 7 6
7 7 5 10 7 11 4 6 8 7
10 7 10 8 11 14 12 5 8 5
Athlete 1 2 3 4 5 6 7 8
Before (X1) 210 230 182 205 262 253 219 21
After (X2) 219 236 179 204 270 250 222 6
21
6
18. A dietitian wishes to see if a person’s cholesterol level will change if the diet is
supplemented by a certain mineral. Six subjects were pretested, and then they took
the mineral supplement for a 6-week period. The results are shown in the table.
(Cholesterol level is measured in milligrams per deciliter.) Can it be concluded that the
cholesterol level has been changed at a = 0.10? Assume the variable is approximately
normally distributed.(pg 495)
Subject 1 2 3 4 5 6
Before (X1) 210 235 208 190 172 24
After (X2) 190 170 210 188 173 4
22
8
Chi-Square Tests
24. A cigarette manufacturer wishes to test the claim that the variance of the nicotine content
of its cigarettes is 0.644. Nicotine content is measured in milligrams, and assume that it
is normally distributed. A sample of 20 cigarettes has a standard deviation of 1.00 mil-
ligram. At a = 0.05, is there enough evidence to reject the manufacturer’s claim?
26. The Russel Reynold Association surveyed retired senior executives who had returned to
work. They found that after returning to work, 38% were employed by another
organization, 32% were self-employed, 23% were either freelancing or consulting, and 7%
had formed their own companies. To see if these percentages are consistent with those of
Allegheny County residents, a local researcher surveyed 300 retired executives who had
returned to work and found that 122 were working for another company, 85 were self-
employed, 76 were either freelancing or consulting, and 17 had formed their own
companies. At a = 0.10, test the claim that the percentages are the same for those
people in Allegheny County.(pg 594) (ExamQ1,2,3,4,5)
27. A researcher read that firearm-related deaths for people aged 1 to 18 were distributed as
follows: 74% were accidental, 16% were homicides, and 10% were suicides. In her
district, there were 68 accidental deaths, 27 homicides, and 5 suicides during the past
year. At a = 0.10, test the claim that the percentages are equal.
When data can be tabulated in table form in terms of frequencies, several types of
hypotheses can be tested by using the chi-square test.
Four-year Advanced
Location No college degree degree
Urban 15 12 8
Suburban 8 15 9
Rural 6 8 7
At a = 0.05, can the sociologist conclude that a person’s location is dependent on the
number of years of college?
29. A researcher wishes to determine whether there is a relationship between the gender
of an individual and the amount of alcohol consumed. A sample of 68 people is selected,
and the following data are obtained.(pg 608)
Alcohol consumption
By testing the hypothesis, check if there is an improvement in students performance after online
tutorials at 0.05 level of significance?
2) The development of extramural studies at the University of Nairobi has been awarding grades to
students in statistics course A, B, C and D in the ratio 2:3:5:8. The department has started a training
program to improve student's performance. After undergoing this program, 500 students have been
graded as follows:
Grade A B C D
Number of students 45 75 126 254
By testing the hypothesis, check if there is an improvement in the student performance after
undergoing the training program.
3) A university has been awarding its postgraduate students A, B, C and D in the ratio 1:2:5:7. In order
to improve student's performance special tutorial classes have been arranged by the university, after
which 800 students were graded as follows:
Grade A B C D
No. of students 78 192 222 308
By testing the hypothesis, check if there's an improvement in working pattern of university staff after an
advance management workshop at 0.05 level of significance?
6) Describe the role of one-tailed test and two tailed that in hypothesis testing. (3 marks)
Portland cement has two manufacturing plants from which random samples are selected. The
weight distribution of the cement bags from the two plants are shown in the following
table:
Number of Weight(kg)
Plant Baes Mean Standard deviation
1 80 50.6 0.2
2 90 50.3 0.4
i) Construct 90% confidence interval for the difference in the mean weights of cement bags
between plant 1 and plant 2. (3 marks)
ii) By testing the hypothesis at 0.05 level of significance, check if there is a significant
difference between the mean weight of cement bags from the two plants? (3 marks)
7) Rift Valley Animal Feed Limited, through research has introduced a new cattle feed claim that it
enhances milk production. Out of 28 cows of same breed and age, randomly selected 15 cows that
were given the new feed on average produced 41 liters of milk daily, with standard deviation of 3
liters. The remaining 13 cows that were given the old feed produced an average of 37 liters of milk
daily, with standard deviation of 5 liters.
Can the company's claim be justified at 0.05 level of significance? (6 Marks)
8) Explain the importance of estimation theory in social science research. (4 Marks)
9) Balala and Wangala Industries have installed a machine at the beginning of the year to produce items
with the length 42cm. After six months in operation a sample of 17 items has been taken, which gave
the mean length of 41.7cm with a variance of 0.16cm. By testing the hypothesis at 95% level
significance, check whether the machine is still in proper working conditions.
10) Listed below is information regarding organ transplantation for three different years. Based on the
data, is there sufficient evidence at *=0.01 to conclude that a relationship exists between year and
type of transplant?
Year Heart Kidney Lung
11) The research unit in a project company wishes to determine whether scores on the scholastic
aptitude test are different for male and female applicants. Random samples of applicants' files are
taken and summarised below:
Applicants
Female Male
Ẋ 502.1 510.5
σ 7,430.44 8,172.16
ᶯ 399 204
Test the hypothesis that the average score is the same for the population make and female applicants.
a) The table below shows the investment plans made by people of all ages.
Type of investment
Age Common Fixed Mixed
25 – 30 30 46 69
36 – 50 95 37 18
50 - 70 15 52 38
Does this data support the hypothesis that investment type is independent of the age of the person?
12) The mean monthly sale of an insurance company is Kshs.81, 590. The manager designed a program
to improve sales. Ten agents were selected randomly to participate in the program. Their monthly
sales were recorded in thousands as follows:
87, 95, 75, 63, 98, 83, 69, 78, 96, 72
By testing hypothesis, does this data provide enough evidence to indicate that the program was a
success?
13) A sample of 150 students selected randomly from a population of students in college. Their ages are
presented in the table below:
Age 19-23 24-28 29-33 34-38 39-43 44-48
No. of students 18 26 49 34 16 7
By testing the hypothesis, check if there is an improvement in student's performance after taking
revision block release classes at 0.05 level of significance?
14) Kitale Farms Limited has two maize processing units from which random samples are selected. The
weight distributions of the maize bags from the two units are shown in the following table:
Weight (kg)
Unit Number of bags Mean Standard deviation
1 120 90.8 0.3
2 130 90.3 0.6
By testing the hypothesis at 0.05 level of significance, check if there is a significant difference between
the mean weights of maize bags from the two processing units?
15) Thika Industries Limited has installed a machine at the beginning of the year to produce industrial
rods of length 72 cm. After 12 weeks a random sample of 26 industrial rods is taken which gave the
mean length of 71.8 cm with standard deviation of 0.4 cm. Test the hypothesis at 0.05 level of
significance to check whether the machine is still in proper working condition?
16) People's Forum has collected information from men and women about the choice of Election
Commission. Random samples of 220 men and 190 women have been taken. Among them 29% do
not like the choice, while 20% women do not like the choice.
(i) Construct 90% confidence interval for the difference between men and women opinion
regarding the choice of Election Commission.
(ii) By testing the hypothesis, check if there's a significant difference between men and
women opinion about the choice of Election Commission at 0.05 level of significance?
17) Rift Valley Farmer Cooperative produces animal feed and claim that it has improved the quality of
the feed through research. Out of 28 cattle of same breed and age, 13 that were selected at random
and were given the new feed, on average increased their weight by 4.2 kg with standard deviation
of 0.7 kg per month. The remaining 15 cattle that were on old feed, on average increased their weight
by 3.9 kg with a standard deviation of 0.9 kg per month. Can the company's claim be justified at 0.05
level of significance?
18) A bank branch located in a commercial district has developed an improved process for serving
customers during the noon to 1.00 p.m. peak lunch period. The waiting time for all customers during
this 1 hour period is recorded over a period of 1 week. A random sample of 15 customers is selected
and the results are as shown below:
4.21 5.55 3.02 5.13 4.77 2.34 3.54 3.20
4.50 6.10 0.38 5.12 6.46 6.19 3.79
(i) At the 0.05 level of significance, is there evidence that the mean waiting time is less than
5 minutes?
(ii) What conclusion will be made at 0.025 level of significance?
19) In 90 throws of dice, face one turned up 12 times, face two or three 28 times, face four or five 30
times and face six 20 times. Test at 10% significance level, if the dice is honest.
20) A stenographer claims that she can type at the rate of 130 words per minute. Can we reject her claim
on the basis of 10 trials in which she demonstrates a mean if 124 words with a variance of 400 words.
Use the 5% level significance.
21) Compare point estimate and interval estimate.
22) Coast Industries had fixed a machine to manufacture items with weight 89g. After 30 weeks a sample
of 17 items was taken which gave the mean weight 88.2gms with standard deviation of 6gms. Test
the hypothesis, whether the machine is still in proper working condition?
23) A random sample size 100 has mean 15, the population variance being 25. Find the interval estimate
of the population mean with a confidence level of 99%.
24) Explain two reasons for using sampling techniques in obtaining information.
Lecture 1: Fundamental Statistical Measures: Basic concepts, frequency and cumulative frequency
distributions, presentation of data. Averages (mean, mode, median, geometric and Harmonic means);
Dispensation (range, mean deviation, quartile deviation and standard deviation); Relative dispersion
(coefficients of variation); pooling of population distributions; skewness; kurtosis.
Lecture 2: Correlation and regression: Scatter diagram, Method of least squares, Regression lines;
Coefficient of determination and correlation coefficient; Rank correlation.
Lecture 3: Index Members: Price quantity and value indices; Index numbers with weight factors. Laspyre's,
Paasche's and Fischer's index numbers.
Lecture 4: Time Series: Components of time series; Estimation of trend (Moving averages and least
squares methods); Estimation of seasonal and residual variations. Time series models.
Lecture 5: Linear programming (LP) models: Basic requirements if linear programming, Duality in LP;
Graphical model; Assignment model and transportation model.
Lecture 7: Inventory control models: Various types of inventories, Economic order quantity (EOQ) model;
Batch manufacture quantity (EMQ) model; Quantity discounts; sensitivity analysis. Models: Definition and
classification of models; Quantitative and qualitative models.
Lecture 8: Elements of probability: Basic definitions; Probability Laws, Baye's rule; Probability Distributions
(Binomial, Poisson and normal)
Lecture 9: Sampling theory; Point and interval estimates: Confidence intervals and test of hypothesis; Null
and alternative- hypothesis; one tailed and two tailed tests.