MATH041 – Mathematics for Business

Practice Questions

With Key

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Question 1

For each of the following variables, determine whether the variable is categorical or numerical. If the
variable is numerical, determine whether the variable is discrete or continuous. If categorical determine
the measurement scale (nominal or ordinal).

a) Amount of money spent on clothing for the past month.

𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁 − 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶

b) Favorite shopping mall in Dubai

𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 − 𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁

c) Number of pair of shoes

𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁 − 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷

d) Student grades (HD, D, C, P, F)

𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 − 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂

e) Number of text messages per hour

𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁 − 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷

f) Time do upload a photo in Facebook

𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁 − 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶

Question 2

Calculate the arithmetic mean, median, mode and range for each of the following data sets:

30, 35, 26, 30, 24, 32, 33, 31, 27, 29

a) mean

𝐴𝐴𝐴𝐴𝐴𝐴: 29.7

b) median

𝐴𝐴𝐴𝐴𝐴𝐴: 30

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 c) mode

𝐴𝐴𝐴𝐴𝐴𝐴: 30

d) range

𝐴𝐴𝐴𝐴𝐴𝐴: 11

Question 3

If a student purchased two Statistics books for $57 each, three Mathematics books for $63 each and two
Physics books for $59 each, what is the average price the student paid for his books?

𝐴𝐴𝐴𝐴𝐴𝐴: $ 60.143

Question 4

Calculate the estimated mean age from the following table.

Age (years) No. of persons Midpoint

16-20 30 18
21-25 22 23
26-30 20 28
31-35 10 33

𝐴𝐴𝐴𝐴𝐴𝐴. 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑎𝑎𝑎𝑎𝑎𝑎 ≈ 24

Question 5

Given the following ordered array:

10,12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58,60

a) Construct a percentage distribution using 5 classes

Classes Frequency Percentage

10 ≤ 𝑥𝑥 < 20 4 18.2%
20 ≤ 𝑥𝑥 < 30 6 27.3%
30 ≤ 𝑥𝑥 < 40 5 22.7%
40 ≤ 𝑥𝑥 < 50 4 18.2%
50 ≤ 𝑥𝑥 < 60 3 13.6%

b) Construct a histogram based on frequency for the above data.

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 7
6
5
4
3
2
1
0
15 25 35 45 55

Question 6

Compare the volatility of the following two stocks (which stock is more variable relative to its average
price)

Stock A: Average Price = 80 AED and standard deviation = 8 AED

Stock B: Average Price = 50 AED and standard deviation = 6 AED

8 6
𝐶𝐶𝑉𝑉𝐴𝐴 = × 100 = 10% 𝑎𝑎𝑎𝑎𝑎𝑎 𝐶𝐶𝐶𝐶𝐵𝐵 = × 100 = 12%
80 50

𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝐵𝐵 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑖𝑖𝑖𝑖 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑡𝑡𝑡𝑡 𝑖𝑖𝑖𝑖𝑖𝑖 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝.

Question 7

a) Find the five-number summary(𝑚𝑚𝑚𝑚𝑚𝑚, 𝑚𝑚𝑚𝑚𝑚𝑚, 𝑄𝑄1 , 𝑄𝑄2 &𝑄𝑄3 ) on the above box-plot.

𝑴𝑴𝑴𝑴𝑴𝑴 = 𝟐𝟐, 𝑴𝑴𝑴𝑴𝑴𝑴 = 𝟏𝟏𝟏𝟏, 𝑸𝑸𝟏𝟏 = 𝟖𝟖, 𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴 (𝑸𝑸𝟐𝟐 ) = 𝟏𝟏𝟏𝟏, 𝑸𝑸𝟑𝟑 = 𝟏𝟏𝟏𝟏

b) Interpret the above box-plot and include the shape of the distribution.

• 𝟐𝟐𝟐𝟐% 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗 𝒂𝒂𝒂𝒂𝒂𝒂 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕 𝟖𝟖

• 𝟓𝟓𝟓𝟓% 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗 𝒂𝒂𝒂𝒂𝒂𝒂 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕 𝟏𝟏𝟏𝟏
• 𝟕𝟕𝟕𝟕% 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗 𝒂𝒂𝒂𝒂𝒂𝒂 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕 𝟏𝟏𝟏𝟏
• 𝟐𝟐𝟐𝟐% 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗 𝒂𝒂𝒂𝒂𝒂𝒂 𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃 𝟖𝟖 & 𝟏𝟏𝟏𝟏
• 𝟓𝟓𝟓𝟓% 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗𝒗 𝒂𝒂𝒂𝒂𝒂𝒂 𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃 𝟖𝟖 & 𝟏𝟏𝟏𝟏
• 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 − 𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔

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Question 8

60

40

20

0
0 20 40 60 80

(b) What kind of a relationship, if any, does there appear to be between the two marks? (explain)

𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐

Question 9

A car dealership is giving a trip to Dubai to one of their 120 best customers. In this group, 65 are females,
80 are married and 45 are married females.

a) Construct a contingency table.

Men Female Total

Married 35 45 80
Single 20 20 40
Total 55 65 120

b) What is the probability that the trip will be awarded to a single?

40 1
P(Single) = =
120 3

c) What is the probability that the trip will be awarded to a married female?

45 3
P(Married female) = =
120 8

d) What is the probability that the winner is married, given that she is a female?

P(Married woman) 45/120 9

P(Married|female) = = =
P(Woman) 65/120 13

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 e) What is the probability that the trip will be awarded to a man or to married person?

P(man or married) = P(Man) + P(Married) − P(Married man)

55 80 35
= + −
120 120 120

100 5
= =
120 6

Question 10

According to a study in Dubai, the probability that a person owns two cars if his/her annual income is over
250,000 AED is 85%. Of all the persons surveyed, 65% had annual incomes over 250,000 AED and 72%
had two cars. Find the probability that a person annual income is over 250,000 AED if the person does not
own two cars.

𝐴𝐴: 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 2 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝐵𝐵: 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 250,000 𝐴𝐴𝐴𝐴𝐴𝐴

𝑃𝑃(𝐴𝐴|𝐵𝐵) = 0.85 𝑃𝑃(𝐵𝐵) = 0.65 𝑃𝑃(𝐴𝐴) = 0.72 𝑃𝑃(𝐵𝐵|𝐴𝐴′) = ?

𝑃𝑃(𝐴𝐴′ 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵)

𝑃𝑃(𝐵𝐵|𝐴𝐴′) =
𝑃𝑃(𝐴𝐴′ )
𝑃𝑃(𝐴𝐴’) = 1 − 𝑃𝑃(𝐴𝐴) = 1 − 0.72 = 0.28

𝐿𝐿𝐿𝐿𝐿𝐿 𝑜𝑜𝑜𝑜 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝: 𝑃𝑃(𝐵𝐵) = 𝑃𝑃(𝐴𝐴′ 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵) + 𝑃𝑃(𝐴𝐴 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵)
𝑃𝑃(𝐵𝐵) = 𝑃𝑃(𝐴𝐴’ 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵) + 𝑃𝑃(𝐵𝐵). 𝑃𝑃(𝐴𝐴|𝐵𝐵)
0.65 = 𝑃𝑃(𝐴𝐴’ 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵) + (0.65)(0.85)
𝑃𝑃(𝐴𝐴’ 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵) = 0.0975

0.0975
∴ 𝑃𝑃(𝐵𝐵|𝐴𝐴′ ) = = 0.3482
0.28

Question 11

The information below is the number of daily emergency service calls made by the volunteer ambulance
service of DUBAI.

Number of Calls Frequency

0 3
1 5
2 6
3 2
4 4
5 3

a) Convert the information on the number of calls to a probability distribution.

Number of Calls Frequency P(X)

0 3 0.13
1 5 0.22
2 6 0.26
3 2 0.09
4 4 0.17
5 3 0.13

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 b) Is this an example of a discrete probability distribution or a continuous probability distribution?
(Explain why).

Discrete probability distribution, the variable “number of calls” is discrete.

c) What is the mean number of emergency calls made daily?

𝐸𝐸(𝑋𝑋) = 2.35

d) Calculate the variance of X.

𝜎𝜎 2 = 2.5644

Question 12

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Question 13

Question 14

Solve:

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Question 15

Answer the following:

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Question 16

Question 17

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Question 18

Question 19

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 𝑦𝑦2 −𝑦𝑦1
 𝑚𝑚 =
𝑥𝑥2 −𝑥𝑥1
 𝑦𝑦 − 𝑦𝑦1 = 𝑚𝑚(𝑥𝑥 − 𝑥𝑥1 )
 𝑦𝑦 = 𝑚𝑚𝑚𝑚 + 𝑏𝑏
−𝑏𝑏±√𝑏𝑏2 −4𝑎𝑎𝑎𝑎
 𝑥𝑥 =
2𝑎𝑎
𝑏𝑏
 𝑥𝑥 = −
2𝑎𝑎
 𝐼𝐼 = 𝑃𝑃𝑃𝑃𝑃𝑃
 𝐴𝐴 = 𝑃𝑃 + 𝐼𝐼
𝑟𝑟 𝑛𝑛𝑛𝑛
 𝐴𝐴 = 𝑃𝑃 �1 + �
𝑛𝑛
 𝐶𝐶𝐶𝐶 = 𝐴𝐴 − 𝑃𝑃

 𝐴𝐴 = 𝑃𝑃(1 − 𝑟𝑟)𝑡𝑡

(1 + 𝑖𝑖)𝑚𝑚 − 1
 𝐹𝐹𝐹𝐹 = 𝐴𝐴 � 𝑖𝑖
� (1 + 𝑖𝑖)

(1 + 𝑖𝑖)𝑚𝑚 − 1
 𝐹𝐹𝐹𝐹 = 𝐴𝐴 � �
𝑖𝑖

∑ 𝑥𝑥
 𝑥𝑥̅ (𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎ℎ𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚) =
𝑛𝑛

∑ 𝑓𝑓.𝑥𝑥
 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡𝑡𝑡𝑡𝑡 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 = ∑ 𝑓𝑓

∑(𝑐𝑐𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚).𝑓𝑓
 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 = ∑ 𝑓𝑓

1
 𝑅𝑅�𝐺𝐺 (𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑜𝑜𝑜𝑜 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟) = [(1 + 𝑅𝑅1 ) × (1 + 𝑅𝑅2 ) × … × (1 + 𝑅𝑅𝑛𝑛 )]𝑛𝑛 − 1

𝑚𝑚𝑚𝑚𝑚𝑚−𝑚𝑚𝑚𝑚𝑚𝑚
 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤ℎ =
𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑜𝑜𝑜𝑜 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐

∑(𝑥𝑥−𝑥𝑥̅ )2
 𝑠𝑠 2 (𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎) =
𝑛𝑛−1

 𝑠𝑠(𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑) = √𝑠𝑠 2

𝑠𝑠
 𝐶𝐶𝐶𝐶(𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑜𝑜𝑜𝑜 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣) = ∙ 100
𝑥𝑥̅

𝑛𝑛+1
 𝑄𝑄1 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 =
4

𝑛𝑛+1
 𝑄𝑄2 (𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚)𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 =
2

3(𝑛𝑛+1)
 𝑄𝑄3 𝑝𝑝𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 =
4

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 𝐼𝐼𝐼𝐼𝐼𝐼(𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟) = 𝑄𝑄3 − 𝑄𝑄1

 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙: 𝑄𝑄1 − 1.5𝐼𝐼𝐼𝐼𝐼𝐼

 𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙: 𝑄𝑄3 + 1.5𝐼𝐼𝐼𝐼𝐼𝐼

𝑃𝑃(𝐴𝐴 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵)

 𝑃𝑃(𝐴𝐴|𝐵𝐵) =
𝑃𝑃(𝐵𝐵)

 𝑃𝑃(𝐴𝐴 𝑜𝑜𝑜𝑜 𝐵𝐵) = 𝑃𝑃(𝐴𝐴) + 𝑃𝑃(𝐵𝐵) − 𝑃𝑃(𝐴𝐴 𝑎𝑎𝑎𝑎𝑎𝑎 𝐵𝐵)

 𝑃𝑃(𝐴𝐴′ ) = 1 − 𝑃𝑃(𝐴𝐴) , 𝐴𝐴′ = 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑜𝑜𝑜𝑜 𝐴𝐴

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