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QUESTION

This document contains questions about statistical concepts and calculations: (1) It asks to define sampling distribution, Type II error, and ordinary least squares method. (2) It asks for three reasons why sampling is preferred over a complete census. (3) It provides sample data and asks to calculate the proportion of all passengers favoring proposed new time tables based on the sample.

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155 views2 pages

QUESTION

This document contains questions about statistical concepts and calculations: (1) It asks to define sampling distribution, Type II error, and ordinary least squares method. (2) It asks for three reasons why sampling is preferred over a complete census. (3) It provides sample data and asks to calculate the proportion of all passengers favoring proposed new time tables based on the sample.

Uploaded by

cyrus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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a) Define the following terms as applied in statistics

(i) Sampling distribution


(ii) Type II error
(iii) Ordinary Least Squares method (3 Marks)

b) Give three reasons on why sampling may be preferred over complete


enumeration (census). (3 Marks)

c) A random sample of 400 rail passengers is taken and 245 are in favour of the
proposed new time tables with 95% confidence. What proportion of all
passengers are in favour of the time tables. (5 Marks)

d) A recent article in the Business Daily listed the “Best Small Companies”. We are
interested in the current results of the companies ‘sales and earnings. A random
sample of 8 companies was selected and the sales and earnings, in millions
shillings are reported below.

Sales Sh.(million) 89. 18.6 18.2 71.7 58.6 46.8 17.5 11.9
2
Earning Sh. 4.9 4.4 1.3 8.0 6.6 4.1 2.6 1.7
(million)

Let sales be the independent variable and earnings the dependent variable.
Determine
(i) The regression equation (6 Marks)
(ii) Estimate the earning for a small company with Sh.50 million in sales.
(2
Marks)

(e) The life expectancy of people in the year 1970 in Brazil was expected to be 50
years. A survey was conducted in 11 regions of Brazil and the following data obtained.
Do the data confirm the expected view ?

Life expectancy (yrs)

54.2, 50.4, 44.2, 49.7, 55.4, 57.0, 58.2, 56.6, 61.9, 57.5, 53.4. (6 Marks)

(f) At the time she was hired as a waiter at Tatu Restaurant, Judy was told,” You can
serve more than an average of 20 customers a day.”Over the first 35 days she was
employed at the restaurant, the mean daily customers she served was 24.85,with a
standard deviation of 3.24.At 1% level of significance, can Judy conclude that she is
serving more than 20 customers a day? (5 Marks)

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