THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA

ASSOCIATE OF SCIENCE DEGREE

COURSEWORK
SEMESTER II JANUARY 2016
PROGRAMME:

BUSINESS STUDIES

COURSE NAME:

BUSINESS STATISTICS

CODE:

MATH2401

YEAR GROUP:
DATE:
TIME:
DURATION:
COURSEWORK TYPE:

COURSEWORK 2 - INDIVIDUAL

DUE DATE:
INSTRUCTIONS:

ANSWER ALL QUESTIONS

SECTION A
1.

If two events are mutually exclusive, what is the probability that both occur at the same
time?
A.
B.
C.
D.

2.

0.50
0.00
1.00
Insufficient information given

If the outcome of event A is not affected by event B, then event A and B are said to be:
i. mutually exclusive
ii. intersecting events
iii. independent
A.
B.
C.
D.

3.

The collection of all possible events is called the:

a)
b)
c)
d)

4.

i only
ii only
iii only
neither i, ii nor iii

sample space
probability
whole set
null set

If a bank is selected at random from the distribution, what is the chance that the interest
rate charged on a home loan will exceed 9%.
Interest Rate
Probability

a)
b)
c)
d)

8.0%
0.20

8.5%
0.25

9.0%
0.30

9.5%
0.15

>10.0%
0.10

0.30
1.00
0.05
0.25

5.

If a coin is tossed twice what is the probability of getting at least 1 head.

a)
b)
c)
d)

6.

0
1
0.25
0.5

The students of a certain college class were surveyed on questions regarding their social
network status. Of the 30 students, 21 have Instagram accounts, 13 have twitter accounts,
and 11 have both twitter and Instagram accounts. The probability that a student of the
class has an Instagram or has a twitter account is:
i. 0.70
ii. 0.767
iii. 0.733
A.
B.
C.
D.

7.

If n = 10 and p = 0.55, then the mean of the binomial distribution is:

A.
B.
C.
D.

8.

i only
ii only
iii only
neither i, ii nor iii

0.055
5.50
5.0
10.55

What type of probability will the consulting firm most likely employ to analyse the
insurance claims in the following problem?
An insurance company has called a consulting firm to determine if the company has an
unusually high number of false insurance claims. It is known that the industry proportion
for false claims is 3%. The consulting firm has decided to randomly and independent
sample 50 of the companys insurance claims. They believe the number of these 50 that
are false will yield the information the company desires.
i. Poisson distribution
ii. Normal distribution
iii. Binomial distribution
A.
B.
C.
D.

i only
ii only
iii only
neither i, ii nor iii
3

9.

Which of the following statements is true about a binomial distribution:

A.
B.
C.
D.

10.

In its standardized form, the normal distribution:

A.
B.
C.
D.

11.

the probability of success p is stable from trial to trial

the number of trials n must be at least 30
the random variable X is continuous
the results of one trial are dependent on the results of the other trials

Is a discrete distribution
has a mean of 1 and a variance of 0
has a mean of 0 and a standard deviation of 1
has an area equal to 0.5

The probability that a new advertising campaign will increase sales is assessed as being
0.80. The probability that the cost of developing the new ad campaign can be kept within
the original budget allocation is 0.40. Assuming that the two events are independent, the
probability that the cost is kept within budget and the campaign will increase sales is:
A.
B.
C.
D.

0.32
0.40
0.20
0.88

The information below relates to 12 and 13

A bag contained 12 phones:
5 iPhones
4 Samsung Galaxy S5s
3 Nokia Lumias.
A grab bag is played by a couple of students.
12.

Find the probability that a random draw will produce a Nokia Lumia.
A.
B.
C.
D.

13.

0.75
0.25
0.50
1.0

Find the probability that a random draw will produce any phone except a Nokia Lumia.
A.
B.
C.
D.

0.75
0.5
0.25
1.0
4

14.

A coin is tossed twice. What is the probability of obtaining a head?

A.
B.
C.
D.

15.

0.50
0.75
0.25
1.00

If an event is certain to happen, its probability is:

i. 1
ii. 0.5
iii. 0
A.
B.
C.
D.

i only
ii only
iii only
neither i, ii nor iii

SECTION B
Instructions: Answer all questions from this section.
Question 1
The table below gives the price (in $ per unit) and sales (in 00s of units) of a certain
pharmaceutical item in six different market areas.
Price

20

40

30

10

30

50

Sales

80

30

40

70

80

10

a)

Find the least-squares regression equation y a bx.

(8 marks)

b)

Estimate the sales at a price of $25

(1 mark)

c)

Calculate and interpret the coefficient of determination.

(4 marks)

Question 2
a)

Events A and B are such that P(A) = 0.56 and P(B) = 0.38. If A and B are independent
events, find:

i.
ii.
iii.
b)

P (A)
P (B)
P (A B)

A random variable X follows a Normal probability distribution and has a mean value of
36 and a variance of 121. Calculate:
P( 20 < X < 55)

c)

(1 mark)
(1 mark)
(1 mark)

(4 marks)

Draw the tree diagram for tossing a coin twice and calculate the probability of getting
exactly two head.
(5 marks)

P( A) 1 P ( A)

[Complement Formula]

P ( A B) P ( A) P ( B) P ( A B )

[Union Formula]

P ( B | A)

P( A B)
P ( A)

E ( X ) x P( X x) =

[Conditional Probability]

[Mean Simple Discrete Distribution]

V ( X ) E ( X 2 ) [ E ( X )]2 = x2P(X=x) - 2 [Variance Simple Discrete Distribution]

P( X x) C xn p x (1 p ) n x C xn p x q n x [Binomial Distribution]

P ( X x)

e x e x
[Poisson Distribution]

x!
x!

[Normal Distribution]

n xy x y

[n x ( x) 2 ][ n y 2 ( y ) 2 ]
2

y b x y b x

n xy x y

n x 2 ( x ) 2

[Coefficient of Correlation]

[Intercept]

[Slope]