HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

Max. Mark: 30%

Time allotted 2hr.

Exam Date: 25/11/2024

Instructions:

➢ Make sure that the exam contains 10 multiple choice and 2 work out
question
➢ Neat and clear answers are rewarding
➢ Any form of cheating will nullify your result
➢ Switch off your cell phone.

Write your:

ID ____________________________________________

Signature _____________________________________

Bon Travail!!!
 WORKOUT QUESTIONS
(Show the necessary steps)
PART I: SAMPLING AND SAMPLE DISTRIBUTION
1. In Ministry of Revenue Ethiopia the mean length of time between submission of a VAT tax
return requesting a refund and the issuance of the refund is 47days, with standard deviation
6days. In a sample of 25 returns requesting a refund,
A. What is the expected value and standard error of the sampling distribution of the mean?
(2.5 points)
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B. What is the probability that the mean such time will be more than 50days? (2.5 points)
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2. A state insurance commission estimates that 13% of all motorists in its state are uninsured.
Suppose this proportion is valid in random sample of 50.

A. What is the mean and standard deviation of sample proportions? (2.5 points)

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 B. Find the probability at least 5 will be uninsured.. (2.5 points)

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3. A financial loan officer claims that the mean monthly payment for credit cards is
Birr 80 with a variance of 1400 for single females and Birr 80 with a variance of
1320 for single males. You take a random sample of 100 females (population 1) and
an independent random sample of 120 (population 2).
A. What is the difference between two sample means and standard error of the difference between
two means? (2.5 points)
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B. What is the probability that the sample mean for females will be at least Birr 5 higher
than the sample mean for males? (2.5 points)
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 PART II: STATISTICAL ESTIMATION
4. A Sales accountant wishes to estimate, to within 6 months, the mean time between sales of
existing homes, with 95% confidence. Estimate the minimum size sample required. In his
experience estimate σ to be =6.7. (5 points)

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5. To make the advancement of premium customer reputation, the director of Ethiopian airlines
wishes to estimate the mean number of travelers who are admitted to the business class
during 24-hour period. Accordingly the director randomly selects 64 different 24-hour
periods and determines the number of admissions for each. Thus 𝑥̅ =396 and S = 100.
Estimate the mean number of admissions per 24-hour period with a 95% confidence interval.
(5 points)

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6. Of 139 adults selected randomly from Siinqe Bank, 30 of them have ATM Card. Construct a
99% confidence interval for the true percentage of all adults in the town have ATM Card.
Round to the nearest result. ( 5 points)

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