FAKULTI EKONOMI DAN PERNIAGAAN

UNIVERSITI MALAYSIA SARAWAK

94300 Kota Samarahan
Sarawak
EBQ2024 STATISTICS FOR ECONOMICS AND BUSINESS
TUTORIAL 2

INSTRUCTIONS TO STUDENTS
Students are required to prepare solutions before coming to tutorial class. You may
be requested to submit your solutions to your Tutor in the class.

QUESTIONS
Section A

Questions 1-4 refer to Exhibit 1.

You are given the following frequency distribution.

Class Frequency
10-14 1
15-19 2
20-24 5
25-29 8
30-34 4

1. The mean is
a. 500
b. 26.315
c. 30
d. 25

2. The variance is
a. 570
b. 5.477
c. 500
d. 30

3. The standard deviation is

a. 570
b. 5.477
c. 25
d. 30
4. The coefficient of variation is
a. 25%
b. 21.91%
c. 5.477%
d. 30%

5. If a six sided dice is tossed two times and 4 shows up both times, the probability
of 4 on the third trial is
a. Much larger than any other outcome
b. Much smaller than any other outcome
c. 1/6
d. 1/216

6. A method of assigning probabilities based upon judgment is referred to as the

a. Relative method
b. Probability method
c. Classical method
d. Subjective method

7. The interquartile range is

a. The 50th percentile
b. Another name for variance
c. The difference between the largest and smallest values
d. The difference between the third quartile and the first quartile

8. From a group of six people, two individuals are to be selected at random. How
many possible selection are there?
a. 12
b. 36
c. 15
d. 8

9. The mean of sample

a. Is always equal to the mean of the population
b. Is always smaller than the mean of the population
c. Is computed by summing the data values and dividing the sum by (n 1)
d. Is computed by summing all the data values and dividing the sum by the number
of items

10. The coefficient of variation is

a. The same as the variance
b. The standard deviation divided by the mean times 100
c. The square of the standard deviation
d. The mean divided by the standard deviation
11. From a group of seven finalists to a contest, three individuals are to be selected for
the first and second and third places. Determine the number of possible selections.
a. 21
b. 180
c. 210
d. 35

12. If a penny is tossed three times and comes up heads all three times, the probability
of heads on the fourth trial is
a. Smaller than the probability of tails
b. Larger than the probability of tails
c. 1/16
d. 1/2

13. The heights (in inches) of 25 individuals were recorded and the following
statistics were calculated

mean = 70 range = 20
mode = 73 variance = 784
median = 74

The coefficient of variation equals

a. 11.2%
b. 1120%
c. 0.4%
d. 40%

14. A graphical method of representing the sample points of an experiment is

a. A frequency polygon
b. A histogram
c. An ogive
d. A tree diagram

15. A six-sided die is tossed 3 times. The probability of observing three FIVES in a
row is
a. 1/3
b. 1/6
c. 1/27
d. 1/216

16. A college plans to interview 8 students for possible offer of graduate assistantships.
The college has three assistantships available. How many groups of there can the
college select?
a. 56
b. 72
c. 336
d. 120
17. From a population of size 400, a random sample of 40 items is selected. The
median of the sample
a. Must be 200, since 400 divided by 2 is 200
b. Must be 10, since 400 divided by 40 is 10
c. Must be equal to the median of population, if the sample is truly random
d. None of these alternatives is correct

18. The probability assigned to each experimental outcome must be

a. Any value larger than zero
b. Smaller than zero
c. At least one
d. Between zero and one

19. Ten individuals are candidates for position of president, vice president of an
organization. How many possibilities of selections exist?
a. 45
b. 80
c. 90
d. 120

20. If a data set has an even number of observations, the median

a. Cannot be determined
b. Is the average value of the two middle items
c. Must be equal to the mean
d. Is the average value of the two middle items when all items are arranged in
ascending order

Section B

1. The sales records of DBeatz Headphones show the following sales over the past
200 days:

Number of Headphones Sold Number of Days

0 80
1 64
2 36
3 15
4 5

a. Assign probabilities to the number of headphones it sold each day.

b. What is the probability of selling 1 or 2 headphones?
c. What is the probability of selling less than 3 headphones?
2. The following data represent the daily supply (y in thousands of units) and the unit
price (x in RM) for a product.

Daily Supply (y) Unit Price (x)

15 7
11 5
9 5
17 8
11 8
8 5
12 10
13 6

a. Compute and interpret the sample covariance for the above data.

b. Compute and interpret the sample correlation coefficient.

3. The Ministry of Health carried out a survey on smoking habits in Kota Samarahan
recently. It classifies respondent by age (in years) and whether the respondent is smoker
or non-smoker. As shown below, a total of 250 respondents had participated in the study.

Smoker/Non- Age (in years)

smoker Under 20 20 to 40 Over 40 Total
Smoker 17 121 45 183
Non smoker 9 43 15 67
Total 26 164 60 250

Construct a tree diagram showing all the experimental outcomes.

4. A researcher has obtained the number of hours reading per week during semester
break for a sample of twenty university students.

40 25 35 30 20 40 30 20 40 10
30 20 10 5 20 25 15 20 190 40

a. Identify the five-number summary

b. Construct a box-plot