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Sri Lanka Institute of Information Technology

BBA (Hons) Degree

Final Examination

Year 2, Semester 1 (2022)

BM2015 -Business Statistics

Duration: 2 Hours

June 2023

Instructions to Candidates:

1. This paper contains four (04) questions on seven (07) pages including the cover page.
2. chswer all questions.
3. The entire exam is worth 100 marks which contributes to 60% of the final grade.
4. Use the given booklet to provide answers.

5. Students are allowed to use calculators, and the required formula is provided in the formula
sheet at the end.
Question 1 50 Marks

Safeguard Security manufactures and markets security locks for external doors. The marketing
manager at Safeguard Security is interested in identifying the factors that could influence the
sales level oaf their security lock. The following data were recorded for each of the 26 stores
selling their locks.

• Sales (inunitsofl00)

• Advertising expenditure in Rs.1000s -(Adspend)

• The number of regional representatives -(Reps)

• The number of competing brands -(Brands)

• The crime index -(Crimedx)

A multiple regression model of the following form was estimated with its output given below.

Y = Po + Pixi+ P2X2 + P3X3 + P4X4 + e

Summary Output
Regression Statistics
Multiple R 0.874
R Square 0.763
Adjusted R Square 0.718
Standard Error 45.332
Observations 26

ANOVA
df SS MS F-stat p-value
Regression 4 139121.7 34780.4 16.925 0.00000243
Residual (Error) 21 43155.0 2055.000457
Total 25 182276.7

Regression
Std Lower Upper
Coefficients t-stat p-value
error 950/o 950/o
Intercept 190.45 61.018 3.121 0.0052 63.56 317.35
Adspend (Xl) 2.18 5.161 0.422 0.6771 -8.55 12.91
Reps (X2) 2.61 0.816 3.200 0.0043 0.91 4.31
Brands 0{3) -23.75 4.089 -5.809 0.0000 -32.26 -15.25

Crimedx 0{4) 4.12 2.380 1.731 0.0982 -0.83 9.07

2
a) Name the dependent and the independent variables of this study. (5 marks)

b) Formulate the estimated regression equation with its coefficients. (7 marks)

c) Discuss the signs of all coefficients. Are they as expected? (5 marks)

d) Interpret the estimates of Pi, P2, P3 and P4 of the regression model. (12marks)

e) Determine the statistical significance of the individual parameters by using the p-value
method. Use a = 0.05. (8 marks)

I) Test the statistical significance of the overall regression model. Use a = 0.05. (3 marks)

g) Interpret the value of the adjusted coefficient of determination. (5 marks)

h) Predict the expected sales of security locks when the advertising budget is Rs. 8000, the
number of representatives is 60, the number of competing brands is 10 and the crime index
is 7. (5 marks)

uestion 2 15 Ma`rks

A researcher is interested in studying the work-life balance of postgraduates that are employed.
For this, he collects data from 560 randomly selected students, of which some are females, and
the others are males. Out of all the 242 female students,165 are employed. When considering
the male students, only 112 are employed. If the researcher chose one student at random, find
the probability that the selected student is:

a) Amale (3 marks)

b) Unemployed (3 marks)

c) An unemployed male student (3 marks)

d) An employed student or a male student (3 marks)

e) An unemployed student or a female student (3 marks)

3
 uestion 3 25 Marks

Given below are the number of stanps collected by 10 members of a stamp club in the year
2022. Compute the following measures based on the information provided.

94 65 61 72 49 88 76 56 42 81

a) Mean (2 marks)
b) Median (2 marks)
c) Mode (2 marks)
d) Variance (5 marks)
e) Standard deviation (2 marks)
f) Coefficient of variation (2 marks)
g) Range (2 marks)
h) Interquartile range (5 marks)
i) Skeuness (3 marks)

uestion 4 10 Marks

There is a long history of production and use of limestone in Sri Lanka, as it is used in steel
manufacturing, mining, paper production, water purification, and plastic production. A
company has discovered limestone deposits in Hunugalpoththa cave, which is located in a
remote region of Haldummulla, in the Badulla District. Usually, the limestone content needs
to exceed 3.25kg per cubic metre on average to make operations profitable, with a standard
deviation of 0.12kg per cubic metre. Thirty-six (36) random spots of the cave were tested, and
the average limestone content was found to be 3.30kg per cubic metre.

Calculate the 95% confidence interval for the true ®opulation) average limestone content. How
could we use this information to make a decision?

**End of the Question Paper**

4
 Formula List

Measure of Central Location and Dispesion

i(x,-H,2
j=1
i(x,-i,2
qE"
cr2-
I-1

IV „-1

Stcmdcurd D evition
x 1 0 0 0/o Lp - (IV + 1) x = Lp - (n + 1) x #
Mean

Normal Distribution
X~Normal(Li; cr2) z=x±
a

_SainT)]eDistributiop
a
uX --u CJk = -|inrn

Saml)ling Distribution for Sample ProportioLE

I, - p -p
Z_-
pb-p cJ^p= a-'.'

Confidence Intervals

Q_uantitative or Numerical data:

5±Zz(i) f±'o/2,#-iw •-[#]2or[ 82

Qualitative or Categorical da±ai

-p+-za/2 where G = 1 - A
or -p ± z al 2

HVDothesis Testing
Q±±antitative or Numerical da±ai

z =_x- OS
, -_x¥
TJ= TJ=

Qualitative or Categorical data+

Z_- b-p where a = 1 - p

5
Chi-sciuared tests
1 (o,. - e,. )
Jr2 - I:
'`=1

Analvsis of variance
Single-factor analvsis (one way analysis of variance

SST--£nj(-xj_=x)2
J'=1
kn,
SSE=Z: I(x„-5,)2 0r SSE=Z:(#,-1)a; where s;=±[¥(x„_92]
/.=, ,=1 /=1

MST--SE\ MSE=Ek F=#E

Two-factor analysis (_Two way analysis of variance)

SS(rofoD=£££(x„k -=)2 SS(4)=rb£(f[4|-=)2 SS(B)=ro£(5[B],_=)2

j=1 /'=1 *=1 ''=1 qF="

SS(4B)=r££(j[4B|y-5[4|-5[B],+E)2 SSE=£££(x,„-f[4B|y)2
.-I J=l A-1
j=1 /-1

SS(AB)
Ms(A)=S5£±£ Ms(B)=S5§±=| MS(AB)= MSE =n-cLb
3±
I(cl-1)(b-1)]

MS(AB)
FAB-

Correlation Analysis and Simple Linear regression Analysis

ssr=z:x,2_gr=z:x,2_„F2
„

Ssy=Z:}J,2-qu=Z:}i,2-#72
„
(Z:xjxz:J,i) = I: I,.y,. -urT7
ss ry = £ xiyi -
„
Correlation Coefficient
r-P

n-2
Sanple regression line
^SS ^po---y-^pr-x
S-`po+^pix

SSE and Standard error of estimate

SSE=Ssy-S# s2S--=2 Or Sc=

Test statistics for the significance of the Population slope

 •t,-i

Coefficient of Determination

R2
Ssr _ ap ~-1~5¥-_1_5¥R2=r2
(SSx)(Ssy) Ssy Ss y SST