KATHMANDU UNIVERSITY

Marks Obtained:
BBA and BBIS
End - Semester Examination
February – June 2016 Session
July 2016
SUBJECT : MAS 132 – Statistics II TIME : 10 min.
YEAR : II SEMESTER : II
FULL MARKS : 10

Examination Roll No.:___________________ Registration No._________________

SECTION “A”
[10 Q. × 1 = 10 marks]
Encircle the most appropriate answer from the given choices.

1. A certain normally distributed population has a known standard deviation of 1.0. What is the
total width of a 95% confidence interval for the population?
a. It can't be determined from the information given.
b. 1.96
c. 0.98
d. 3.92

2. For a two-tailed test of hypothesis at the significance level of 0.10, what is the acceptance
region as the entire region?
a. To the right of the negative critical value.
b. Between the two critical values.
c. Outside of the two critical values.
d. To the left of the positive critical value.

3. Airline A and B boast successful baggage routing rates of 95 98 percent, respectively. From
this information, statistically what we can state?
a. Airline A has better baggage service.
b. Airline B has better baggage service.
c. Nothings; we need more information.
d. The baggage services are equally accurate.

4. Suppose that there are eight possible classes under consideration for goodness of fit test. How
many degrees of freedom should be used?
a. 8
b. 7
c. 6
d. It can't be determined from the information given.

5. Suppose you are comparing the mean of five groups exposed to different methods of treatment
and has taken a sample of size 10 from each group. Which test will be appropriate for this
study?
a. One way independent ANOVA test.
b. T-test.
c. Z-test.
d. Chi-square test.
6. If the dependent variable increases as the independent variables increases in estimating the
relationship, the coefficient of correlation will be in which of the ranges?
a. -1 to 0
b. 0 to 1
c. -2 to -3
d. 2 to 3

7. A cost accountant is developing a regression model to predict the total cost of producing a
batch of printed circuit boards as a function of batch size (the number of boards produced in
one lot or batch). Which is the dependent variable?
a. Batch size
b. Unit variable cost
c. Total cost
d. Total variable cost

8. A multiple regression analysis produced the following tables.

Predictor Coefficients Standard Error t Statistic p-value

Intercept 752.0833 336.3158 2.236241 0.042132
x1 11.87375 5.32047 2.231711 0.042493
x2 1.908183 0.662742 2.879226 0.01213

What do these results indicate?

a. None of the predictor variables are significant at the 5% level
b. x1 is the only predictor variable significant at the 5% level
c. x2 is the only predictor variable significant at the 5% level
d. Each predictor variable is significant at the 5% level

9. Assume that the total of the unadjusted indices for the four quarters is 404.04. If the unadjusted
index for the first quarter is 97.0, what is the adjusted seasonal index for the first quarter?
a. 96.03
b. 97.98
c. 24.01
d. 99.00

10. Using a three-month moving average, what would be the forecast value for October made at the
end of September in the following time series?
July 12
Aug 5
Sept 7
Oct 11
a. 7.67
b. 8.00
c. 9.00
d. 6.89
 KATHMANDU UNIVERSITY
BBA and BBIS
End - Semester Examination
February – June 2016 Session
July 2016
SUBJECT : MAS 132 – Statistics II TIME : 2 Hrs. 50 min.
YEAR : II SEMESTER : II
FULL MARKS : 40
SECTION “B”
[6 Q. × 4 = 24 Marks]
Attempt any SIX questions.
1. For a population with a know variance of 185, a sample of 64 individuals leads to 217 as an
estimate of the mean.
a. Find the standard error of the mean and interpret it.
b. Establish an interval estimate that should include the population mean 80% of the time.
2. In 1996, it was estimated that about 72% of all U.S. households were cable TV subscribers.
Newstime magazine's editors were sure that their readers subscribed to cable TV at a higher
rate than the general population and wanted to use this fact to sell advertising space for
premium cable channels. To verify this, they sampled 250 of Newstime's subscribes and found
that 194 subscribed to cable TV. At a significance level of 5 percent, do the survey data support
the editor's belief?

3. A large stock-brokerage firm wants to determine how successful its new account executives
have been at recruiting clients. After completing their training, new accounts execs spend
several weeks calling prospective clients, trying to get the prospects to open accounts with the
firm. The following data give the number of new accounts opened in their first 2 weeks by 10
randomly chosen female accounts execs and by 8 randomly chosen male accounts execs. At the
0.05 significance level, does it appear that the women are more effective at generating new
accounts than the men are?
Female account execs 12 11 14 13 13 14 13 1 14 12
2
Male account execs 13 10 11 12 13 12 10 1
2
4. A diligent statistics student wants to see whether it is reasonable to assume that some sales data
have been sampled from a normal population before performing a hypothesis test on the mean
sales. She collected some sales data, computed sample mean of 78 and standard deviation of 9,
and tabulated the data as follows:

Sales level ≤ 66 - 70 71 – 76 - 81 - 85 ≥ 86
65 75 80
Number of observations 10 20 40 50 40 40
a. Is it important for the statistics students to check whether the data are normally distributed?
Explain
b. State explicit null and alternative hypothesis for checking whether the data are normally
distributed at 5% significance level.
5. The city council of Bowie, Maryland, has gathered data on the number of minor traffic
accidents and the number of youth soccer games that occur in town over a weekend.
Soccer 20 3 10 12 15 2 34
0 5
Minor 6 9 4 5 7 8 9
accidents
 a. Develop the estimating equation that best describe these data. And interpret the results.
b. Predict the number of minor traffic accidents that will occur on a weekend during which 33
soccer games take place in Bowie.
c. What proportion of the variation in minor traffic accidents is explained by frequency of youth
soccer game?

6. Suppose you are capital budgeting officer of a small corporation whose financing requirements
over the last few years have been presented in the following table.
Year 1989 199 1991 199 1993 1994 1995
0 2
Millions of dollar required 2.2 2.1 2.4 2.6 2.7 2.9 2.8
Estimate the financing requirement for the year 1996 using three period moving average
method and also measure the accuracy of the model by calculating MAD. Do you recommend
this method to estimate the financing requirement for the year 1996?
7. Given the following information from a multiple regression analysis:
n = 25, b1 = 5, b2 = 10, Sb1 = 2, Sb2 = 8
At the 0.05 level of significance, determine whether each explanatory variable makes a
significant contribution to the regression model. On the basis of these results, indicate the
independent variables that should be included in this model.

SECTION “C”
[2 Q. × 8 = 16 Marks]
Attempt any TWO questions
8. The SPSS outputs for a multiple regression analysis are given. Study the ANOVA Table, and
coefficients table and answered the following questions.
a. What is the estimated regression model for this study? And interpret the model.
b. Test the overall significance of the regression model.
c. Calculate and interpret the coefficient of determination and standard error of the estimate.
d. What recommendations would you make about the predictor variables in the model from
statistical point of view?

ANOVA Table
Sum of Mean
Model Squares df Square F Sig.
1 Regression 12.870 4 3.218 16.362 .001a

Residual 1.377 7 .197    

Total 14.247 11      

Predictor variables: X1, X2, X3, and X4

Dependent variable: income of household (Y)

Coefficients Table

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 32.015 1.753   18.267 .000

Value of home (X1) .002 .007 .083 .377 .717

 Year of education (X2) .535 .134 .535 3.995 .005
Age (X3) -.058 .026 -.285 -2.217 .062
Mortgage payment (X4) .007 .002 .639 2.985 .020

9. A chain of restaurants in a city wants to compare 3 of its restaurants regarding the service time
per customers. One of the owners visited the 3 restaurants during the peak hours and noted the
service time for 5 customers in each of the three restaurants.

Table: service time in minutes in 3 restaurants

Restaurant 1 Restaurant 2 Restaurant 3

3 3 2
4 4 3.5
5.5 5.5 5
3.5 2.5 6.5
4 3 6

a. Determine the research question and set in the null and alternative hypothesis.
b. Test the significance of the research question at 5% significance level. What is your
conclusion?

10. The quarterly sales of a company for 5 years are given in table.

Table: Sales in thousand

  Spring Summe Fall Winter

r
2009 119 86 114 92
2010 120 105 89 88
2011 107 82 106 114
2012 110 85 88 108
2013 82 109 106 107

Determine the seasonal indices for each season using ratio to moving average method and
interpret the results. What could be the implications of these indices?
ANSWER KEY
MAS 132- Statistics II

1 A
2 B
3 C
4 D
5 A
6 B
7 C
8 D
9 A
10 B