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PAN AFRICA CHRISTIAN UNIVERSITY
BACHELORS OF COMMERCE
END OF TERM EXAMINATION
DEPARTMENT: BUSINESS
COURSE CODE: BUS2243
COURSE TITLE: BUSINESS STATISTICS
ROYSAMBU CAMPUS - EVENING
EXAM DATE: THURSDAY; 4TH AUGUST, 2016
TIME: 5.30PM – 8.30PM
INSTRUCTIONS
 This examination script consists of six (6) questions.
 Answer ANY five Questions.
 Read all questions carefully before attempting.
 Write your student number on the answer booklet provided.
QUESTION ONE
a) Explain the term statistics
(2 marks)
b) Distinguish between: i) Descriptive and inferential statistics
(4 marks)
ii) Regression analysis and correlation analysis
(4 marks)
iii) A dependent variable and an independent variable (4 marks)
c) Given the following data set:
191
288
236
184
260
354
291
530
242
a) The arithmetic mean
b) Mode
c) The median
(3marks)
(1mark)
(2 marks)
QUESTION TWO
a) Explain the importance of computing price indices in business
(7 marks)
b) Cable PLC manufactures an item of domestic equipment which requires a number of
components which have varied as various modifications of the model have been used.
The following table shows the number of components required together with the price
over the last three years of production.
Component
A
B
C
D
2010
Prices Quantity
3.63
3
2.11
4
10.03
1
4.01
7
2011
Prices Quantity
4.00
2
3.10
5
10.36
1
5.23
6
2012
Prices Quantity
4.49
2
3.26
6
12.05
1
5.21
5
Required:
a) Establish the base weighted price indices for 2011 and 2012 based on 2010 for the item
of equipment.
(4 marks)
b) Establish the current weighted price indices for 2011 and 2012 based on 2010 for the
item of equipment.
(4
marks)
QUESTION THREE
The table indicates the proportion of adults who are celebrity-endorsement ads believable, listed
according to the adult's level of educational achievement.
Believable
Less Than
High School
High School
Graduate
Some
College
College
Graduate
0.32
0.32
0.24
0.21
Suppose that a single adult is randomly selected from among those listed in the survey.
a) If 24% of adults in the surveyed group are college graduates, what is the probability that
the chosen adult will be a college graduate who does not believe the ad? (5 marks)
b) If the chosen adult has had some college, what is the probability that she does not believe
the ad?
(5 marks)
c) If 40% of adults in the surveyed group have never been to college, what is the probability
that the chosen adult has not gone to college but believes the ad?
(5 marks)
QUESTION FOUR
a) Describe three levels of measurements in statistics
(6 marks)
b) Explain situations where the following types of analyses can be applicable:
i.
Times series
(3 marks)
ii.
Regression Analysis
(3 marks)
iii. Probability analysis
(3 marks)
QUESTION FIVE
a) Given the following data:
Marks
No. of Students
Required:
i.
ii.
iii.
0-10
3
10-20
7
20-30
8
30-40
18
Calculate the mean
Calculate the standard deviation
Calculate the coefficient of variance
40-50
12
(6 marks)
(7 marks)
(2 marks)
QUESTION SIX
b) Describe the sampling process
c) Discuss various ways in which statistics is important to business
d) Explain reasons as to why data should be classified
(5 marks)
(6 marks)
(4 marks)