MATH1030 Statistics for Business Assignment
 Subject Code :
MATH1030
 University :
Western Sydney University Exam Question Bank is not sponsored or endorsed by this college or university.
 Country :
Australia
Question 1  8 – Type The Letter Corresponding To Your Answers In Table Provided
1 

2 

3 

4 

5 

6 

7 

8 

Question 1  4 (1 mark each = 4 marks)
The number of students attending the weekly tutorial for the last 7 weeks was recorded as follows:
23, 23, 18, 26, 20, 31, 20
1. What is the sample mean? 
A 23 
B 22 
C 25 
D 24 
2. What is the median? 
A 26 
B 23 
C 22 
D 4 
3. What is the sample variance? 
A 19.333 
B 16.571 
C 4.397 
D 4.071 
4. What is the sample range? 
A 3 
B 8 
C 13 
D 20 
Question 5  8 (1 mark each = 4 marks)
A survey was conducted to determine whether if a customer would recommend the store is independent to the store’s location. The result of the survey is tabulated for the following possible responses and the store’s location.

Sydney CBD 
Parramatta CBD 
Total 
Would recommend 
20 
60 
80 
Would not recommend 
10 
10 
20 
Total 
30 
70 
100 
Let W be the event that the customer would recommend the store and
Let M be the event that the store’s location is Sydney CBD.
5. What is P (M)? 
A 0.20 
B 0.30 
C 0.80 
D 0.67 
6. What is the P (M W) ? 
A 0.20 
B 0.60 
C 0.90 
D 0.30 
7. What is the P (M U W) ? 
A 0.10 
B 0.60 
C 0.90 
D 0.30 
8. What is the P (M  W)? 
A 0.20 
B 0.67 
C 0.90 
D 0.25 
Question 9  15 – Type The Letter Corresponding To Your Answers In Table Provided
9 

10 

11 

12 

13 

14 

15 



Question 9  12 (1 mark each = 4 marks)
A fast food franchise is deciding between four locations for its new store. The locations and expected revenues are shown in the table along with the likelihoods that the store will be popular or unpopular.
Probability 
Location A 
Location B 
Location C 
Location D 

Popular 
0.7 
50,000 
40,000 
25,000 
30,000 
UnPopular 
0.3 
20,000 
40,000 
65,000 
40,000 
9. What is the EMV for Location A? 
A 70,000 
B 35,000 
C 50,000 
D 41,000 
10. Based on maximising EMV, what location should be selected? 
A A 
B B 
C C 
D D 
11. What is the EPPI? 
A 115,000 
B 54,500 
C 70,000 
D 23,500 
12. A market research firm has offered to do a study that will guarantee the franchiser that they can select the best location. What is the most that the franchiser should be willing to pay for such a research report? 
A 20,500 
B 14,500 
C 13,500 
D 17,500 
Question 13  15 (1 mark each = 3 marks)
A bank has a savings account in which it knows that the balance across all accounts is normally distributed, with a mean of $8000 and a standard deviation of $1000.
13.
The bank pays a higher rate of interest for accounts with a balance over $9500. Approximately, what proportion of accounts qualifies for this higher rate of interest? 
A 0.9332 
B 0.8413 
C 0.0668 
D 0.0062 
14.The bank intends to write to account holders with balances in the bottom 3%. Approximately what will be the cutoff level (to the nearest dollar) below which an account holder will receive a letter? 
A 6120 
B 9880 
C 7512 
D 6200 
15. If 16 accounts are selected at random, find the probability that the average balance is more than $ 8500? 
A 0.0228 
B 2 
c 0.9772 
D 0.7486 
Questions 16  20 – Type Your Answers In Space Provided
Question 16 [4 marks]
A sample of 100 employees from a company had their annual sales recorded. The results gave a mean salary of $19,500. From past experiences, it is known that the standard deviation of mean salaries is $2,500. Construct a 95% confidence interval for the true average salary of all employees.
Question 17 (6 marks]
Researchers compared an experimental drug with the standard drug for the treatment of a certain disease, 300 were given the experimental drug and 500 were given the standard drug. The number of patients who recovered from each group were recorded as follows

Experimental Drug 
Standard drug 
Number of patients in Total 
300 
500 
Number of recovered patients 
225 
371 
Can we conclude, at the 10% level of significane, that the experimental drug had a higher proporion of recovered patients than the standard drug?
Question 18 (7 marks)
In consumer marketing, a common problem that any marketing manager faces is the selection of appropriate colours for package design. Assume that a marketing manager wishes to compare five different colours of package design. He is interested in knowing which of the five the most preferred one is so that it can be introduced in the market. A random sample of 400 consumers reveals the following:
Colour 
Red 
Blue 
Green 
Pink 
Orange 
Preference 
70 
106 
80 
70 
74 
Can we conclude, at five percent level of significance, that the consumer preference for package colours shows a significant difference?
Question 19 (2 + 2 = 4 marks)
The following random sample of 8 data values were obtained in a study of the relationship between the selling price of a threebedroom unit (in thousands of dollars) and its assessed value (in thousands of dollars):
OneBedroom Unit 
1 
2 
3 
4 
5 
6 
7 
8 
Assessed Value ($1000’s) (x) 
780 
800 
740 
860 
750 
660 
720 
850 
Selling Price ($1000’s) (y) 
940 
1020 
890 
1160 
880 
720 
920 
1140 
You may use the following Excel printouts or summary statistics provided to answer the questions
SUMMARY OUTPUT 


SUMMARY STATISTICS 

Regression Statistics 

n = 
8 

Multiple R 
0.973 

? = 
770 
R Square 
0.947 

? = 
958.75 
Adjusted R Square 
0.939 

s^{2}_{x} = 
4485.714 
Standard Error 
35.918 

s^{2}_{y} = 
20983.93 
Observations 
8 

s_{xy} = 
9442.857 






Coefficients 
Standard Error 
t Stat 
Pvalue 
Intercept 
662.174 
156.593 
4.229 
0.006 
Assessed Value 
2.105 
0.203 
10.385 
0.000 
a) Determine the linear regression equation to predict the selling price of a threebedroom unit from its assessed value.
b) Predict the approximate selling price of a comparable threebedroom unit with an assessed value of $800,000.
Question 20 (2 + 2 = 4 marks)
A role of the NSW Department of Social Services is to monitor the cost of goods and services in the state. Recent reports reveal that the price of commonly purchased supermarket items has doubled over the past ten years, and this is a concern for the department. In June 2015 the department investigated the findings of the report by regularly sending officials out to a typical supermarket in their area. The officials are asked to purchase a basket of food whose items that are commonly bought – these include eggs (by the dozen), milk (two litre bottle), bread (by the load), and potatoes (by the kilogram). The following information summarises the average yearly price of each item in the basket and the quantity typically bought (per year) for the years 2005 and 2015.

Quantity 
Price 


2005 
2015 
2005 
2015 
Eggs (dozen) 
45 
35 
2.35 
4.20 
Milk (2L) 
50 
48 
1.50 
2.48 
Bread (loaf) 
50 
50 
0.92 
1.98 
Potatoes (kg) 
48 
50 
4.21 
7.26 
a) Calculate a simple aggregate price index for 2015, taking 2005 as the base year.
b) Calculate the Paasche price index for 2015, taking 2005 as the base year.