1. You are allowed 15 minutes reading time before the examination begins during which you should read the question paper and, if you wish, make annotations on the question paper. However, you are not allowed, under any circumstances, to open the answer book and start writing or use your calculator during this reading time.
2. Number of questions on paper - 9.
3. The paper is divided into Sections A and B. ALL questions to be answered in Section A and ANY TWO from Section B.
4. The maximum number of marks for each answer is indicated against each question.
5. Mathematical Tables, Formulae Sheets and Graph Paper are provided.
6. Use of non-programmable calculators is allowed.
7. Show all your workings in order to gain full marks. Method marks will be awarded throughout.
8. Final answers must be given correct to 2 decimal places where necessary.
9. Begin each answer on a fresh page.
10. DO NOT OPEN THIS PAPER UNTIL YOU ARE INSTRUCTED BY
THE INVIGILATOR.
This question paper contains 5 pages
This question paper must not be removed from the examination hall. 1
SECTION A
ANSWER ALL QUESTIONS IN THIS SECTION
1. (a) Factorise 1 Mark
(b) Determine the intercept of the equation 2 Marks
(c) Assume that the supply function is represented by , and
the demand function is represented by where P is the price in K’000 and q is the quantity.
Required:
Find the equilibrium price. 4 Marks
(d) The 2nd term of an arithmetic progression exceeds the 5 th term by 18.
Required:
Find the common difference of the progression. 4 Marks
(TOTAL : 11 MARKS)
2. (a) Evaluate 2 Marks
(b) A pot contains six red marbles and four black marbles all of equal size. Two marbles are drawn without replacement from the pot.
Required:
Find the probability that both marbles are black. 2 Marks
(c) Solve the following simultaneous equations:
6 Marks (TOTAL : 10 MARKS)
3. Explain the meaning of the following in the context of statistics and in each case give an example:
(a) Quantitative variable 2 Marks
(b) Qualitative variable 2 Marks (c) Statistic 3 Marks (d) Parameter 3 Marks
(TOTAL : 10 MARKS)
Continued/…… 2
4. (a) An amount of K30,000 is deposited in a bank paying an annual interest
of 5% compounded monthly.
Required:
(i) Find the total amount of this deposit (principal + interest) at the end of 4 years. 3 Marks
(ii) Find the total interest earned in 4 years. 1 Mark
(b) Students at a certain school were surveyed to find out the mode of transport they used when going to school. The results were:
Walking 9, Bicycle 10, Car 6 and Bus 15.
Required:
Construct a pie chart of radius 4cm to present this information. 5 Marks
(TOTAL : 9 MARKS)
5. (a) You are given the following data:
Age (Years) Frequency
21 30 5 31 40 8 41 50 15 51 60 11 61 70 5 71 80 1
Required:
Using the scales: 1cm: 10 units on the horizontal axis and 2cm: 10 units on the vertical axis, construct a less-than cumulative frequency curve or ogive of the data in the table above. 5 Marks
(b) State any five properties of a good questionnaire for a statistical survey. 5 Marks (TOTAL : 10 MARKS)
6. (a) A company bought a machine for K140,000 and it is depreciated at the
rate of 20% per annum according to the reducing balance method of depreciation.
Required:
Calculate the value of the machine after 5 years. 4 Marks
Continued/…… 3
(b) The following table shows the ranking of 10 students according to the marks obtained for English Language and Mathematics in an examination held recently:
Students A B C D E F G H I J English Language (Rank) 1 2 4 6 3 5 9 7 10 8 Mathematics (Rank) 4 5 3 1 9 7 6 8 2 10
Required:
Calculate the rank correlation coefficient of the data and comment on your answer. 6 Marks (TOTAL : 10 MARKS)
SECTION B ANSWER TWO QUESTIONS ONLY FROM THIS SECTION
7. (a) If an adult and a child take 4 days to complete a job and the adult alone can complete the job in 6 days, find how long it would take the child to complete the work. 6 Marks
(b) Two projects are expected to generate the following cash inflows during the next 4 years:
The initial cost of each project is K215, 000. The cost of capital for these projects is 20% per annum.
Required:
Assuming that these cash inflows occur at the end of each year, calculate the Net Present Value of each project and comment on the Net Present Values obtained.
You may use the following discount factors:
Year 1 2 3 4 Discounting 0.8333 0.6944 0.5787 0.4823 factor at 20% 5 Marks
Continued/…… 4
(c) 100 students sat for a particular examination of which 60 were boys. The number of students who passed this examination was 40, of whom 20 were girls.
Required:
Find the probability of:
(i) A student passing the examination 1 Mark
(ii) A girl passing the examination 1 Mark (iii) A selected student who is a boy, failing the examination. 2 Marks
(d) You are given the following frequency distribution:
(i) Using a scale of 1:1,000 units on the sales axis, construct a time series chart for the data. 4 Marks
Continued/…… 5
(ii) Find the trend equation using the method of least squares. 8 Marks (iii) Using the multiplicative model, calculate the average seasonal factors. 7 Marks (TOTAL : 20 MARKS)
9. (a) Explain what is meant by each of the following terms in statistics:
(i) Pilot survey 3 Marks
(ii) Non-response 2 Marks (iii) Sampling frame 2 Marks (iv) Simple random sampling 2 Marks (v) Quota sampling 3 Marks
(b) Personal interview and postal questionnaire are two means of collecting data.
Required:
Mention two advantages and two disadvantages of each method. 8 Marks
