Student’s full name Richemond Stewart Godelvie Ngoma

Student number 202001990

Name of Campus Mowbray Campus
Year of Study 2nd Year Semester 1st semester

Programme BCOM Business Management

Module Name Quantitative Techniques Module Code QTE210
Lecturer Masuk Berry
Due date 10th MAY 2021 Date submitted 10h MAY 2021

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Table of Contents
QUESTION 1: ..................................................................................................................................... 3
1.1 Calculation of the Mean ....................................................................................................... 3

1.2 Calculation of Mode ............................................................................................................. 4

1.3 Calculation of the standard deviation ……………………………………………………………………….. 4

QUESTION 2:
...................................................................................................................................... 2.1
Probability that an individual chosen at random is from a group that saves more
than 20% of their salary
.............................................................................................................. 5

2.2 Probability of randomly picking a female who saves less than 10% of her salary
…………………………………………………………………………………………………………………………………………………….. 5

2.3 Probability that an individual who saves between 10% and 20% is male ………… 5

2.4 Probability that an individual picked at random from the group is male given
that the save less than 10% …………………………………………………………………………………………….. 5

2.5 Probability that an individual picked at random from the group is not a male …..6

QUESTION 3: ……………………………………………………………………………………………………………………….
3.1 A 95% confidence interval for the average lifespan of the batteries and its
interpretation……………………………………………………………………………………………………………………….. 6

3.2 A 99% confidence interval for the proportion of clients who will be interested in
the new credit facility ………………………………………………………………………………………………………… 7

QUESTION 4: …………………………………………………………………………………………………………………8
4.1 a) Formulation of the null and the alternative hypothesis test ………………………8
b) The most appropriate test statistics to use (z or t) ………………………………………8
c) Hypothesis test for a single mean at 5% significance level and its
interpretation ………………………………………………………………………………………………………………….8
QUESTION 5: ……………………………………………………………………………………………………………………9
a) Identification of the dependent and independent variables ……………………………9
b) Calculation of correlation coefficient (r) of the two variables and the
interpretation of the result ……………………………………………………………………………………9
QUESTION 1:

Class f F Midpoint f𝒳 𝑥2 f𝑥 2

0-< 6
Interval (𝒳)
5 5 3 15 9 45

6-< 12 9 14 9 81 81 729
12-< 18 4 18 15 60 225 900
18-< 24 5 23 21 105 441 2205
24-< 30 5 28 27 135 729 3645
30-< 36 2 30 33 66 1089 2178
Total= 30

n= 30

F: cumulative frequency, f= frequency.

1.1 Calculation of the mean.

∑𝑓
𝑥
�=
𝑛
�

- Let first consider 𝒳 as the midpoint and calculate the midpoint (𝒳) for each
interval.
 For 0-< 6, the midpoint is 3.
 For 6-< 12, the midpoint is 9.
 For 12-< 18, the midpoint is
15.  For 18-< 24, the
midpoint is 21.  For 24-< 30, the
midpoint is 27.  For 30-< 36, the
midpoint is 33.

The formula for the mean is as followed:

∑ 𝑓𝑥
= 15.6
462
𝑛 30
�= =
�
1.2 Calculation of the mode.

Here is the following formula to calculate the mode:

 𝐶 (𝑓𝑚 𝑚 − )
𝑀𝑜 = 𝑂𝑚𝑜 +
−

2𝑓𝑚𝑚−
−𝑓 𝑚
1 − 𝑓 +1

Where:

𝑂𝑚𝑜 = Lower limit of the modal interval.

𝒞= The class width.

𝑓𝑚= frequency of the modal interval.

𝑓� −1= frequency of the interval preceding the modal interval.

𝑓� +1= frequency of the modal interval following the modal interval.

�

Hence: 𝑂𝑚𝑜 = 6; 𝐶 = 6; 𝑓𝑚 = 𝑚
9; 𝑓 −1 =
𝑚 5; 𝑓 = 4.
�

+1

6
6
𝑀𝑜
+
(9−5)
18−5−
=

24
9
=6+ = 6 + 2.66

= 8.66

𝑴𝒐= 8.66

1.3 Calculation of the standard deviation.

The formula of the standard deviation is as followed:

S= √𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒 , Thus let first find the variance (𝑆 2 ).

̅
∑ 𝑓𝑋 2 −𝑛𝑋 2
𝑆=
2
𝑛−1

9702−30
(15.4)2
=

30−1

9702−7114.
8 29
=

= 89.213

𝑻𝒉𝒆𝒏 𝓢= √𝟖𝟗. 𝟐𝟏𝟑 =9.44

𝑆= 9.44 as the standard deviation.

QUESTION 2:

2.1 Probability that an individual chosen at random is from a group that saves more
than 20% of their salary.

Let A= event (Individual who saves more than 20% of their monthly salary.)

80 1
800 10
Then P(A)= =

1
10
Thus, there is only chance of finding an individual who saves more than 20%.

2.2 Probability of randomly picking a female who saves less than 10% of her salary.

Let B= event (Picking a female who saves less than 10% of her salary.)

130
450 450
Then P(B)= =
13
1
There is a 3
450
chance of picking a female who saves less than 10% of her monthly

salary.

2.3 Probability that an individual who saves between 10% and 20% is male.

Let C= event (individual who saves between 10% and 20%)

Let D= event (individual picked at random from the group is a male.

90 9
370 37
P(C/D)= =

9
37
There is a chance of finding a male as an individual who saves between 10% and

20%.

2.4 Probability that an individual picked at random from the group is male given
that the save less than 10%.

Let E= event (individual picked at random is a male)

Let F= event (saves less than 10%).

220
800 40
P(E/F)= =
11
1
There is a 1 chance of randomly picking from a group a male that saves less than
40
10%.

2.5 Probability that an individual picked at random from the group is not a male.

450 9
800
P= =

16

9
16
There is a of choosing from the group that an individual is not a male.

QUESTION 3:

3.1 95% confidence interval for the average lifespan of the batteries.

 Let first calculate the standard error.

𝜎𝑥=√𝑛
𝜎 12.2 12.2
√20
= = = 2.72 hours.
4.47
The 95% confidence level refers to z-limit that bound a symmetrical area of 95%
around the mean of the standard normal distribution.

From the Z-table, a 95% confidence level corresponds to z-limit of ± 1.96.

Where we re-arrange the isolate 𝒰:

𝒰= 𝑥 ± Z�
�
√𝑛

= 1200 ± 1.96 (2.72)

= 1200 ± 5.3312

This gives a lower and upper confidence limit 𝒰:

 - Lower 95% confidence limit of 1200 – 5.3312= 1194.66 (1195)
- Upper 95% confidence limit of 1200 + 3.3312= 1205.33 (1205)

Thus, the 95% confidence is defined as 1195 ≤ 𝒰 ≤ 1205 hours.

 Interpretation of the result.

There is 95% chance that the true mean value of the lifespan of the batteries created
lies between 1195 hours and 1205 hours.

3.2 Calculation of the 99% confidence interval.

 Let’s first find the sample proportion (𝒫)

𝑥
𝒫=
𝑛 450
383
= = 0.85

Using the sample proportion (𝒫), let’s now find the standard error of (𝒫).

𝜎𝑝 = √
𝑃 (1−𝑃)
𝑛

𝜎 √ 𝑝
0.85
(1−0.85)
450
=

𝝈𝒑 = 0.0168

The z-value is 2.58 for 99% confidence interval.

Thus, 99% confidence interval for the clients who will be interested in the new credit
facility is given by:

- Lower limit: 0.85 – 2.58 (0.0168)= 0.85 – 0.043344 = 0.806.

- Upper limit: 0.85 + 2.58 (0.0168)= 0.85 + 0.043344 = 0.893

The 99% confidence interval for 𝜋 is given by 0.806 ≤ 𝜋 ≤ 0.893.

 Interpretation of the result.

There is 99% chance that the true percentage of clients who might be interest in the
new credit facility lies between 80.6% and 89.3 %.
QUESTION 4:

a) Formulation of the null and the alternative hypothesis test.

Since the manager at a bank believes that clients spend on average less than 15
minutes in the queue, the hypothesis is consider to be a one-sided lower tailed test.

Ho: 𝒰 ≥ 15

H1: 𝒰 < 15 (The the management question resides in the alternative hypothesis)

b) The z-statistics is the most appropriate to use in our case since the standard
deviation is known and the sample size (n) exceeds 40 for our hypothesis test.
c) Construction of the hypothesis test for a single mean at 5% significance
level.
 Step 1: Definition of the null and the alternative hypothesis

Given this a one tailed test Ho and H1 are formulated as followed:

Ho: 𝒰 ≥ 15

H1: 𝒰 < 15 (This represents the management question.)

The null hypothesis will be rejected in favour of the alternative hypothesis only when
the sample value is less than the population value.

 Step 2: The region of acceptance of the null hypothesis.

A level of significance is needed to find the critical z-limit between the region of

acceptance and rejection. In our case, 𝛼 = 0.05 (5% level of significance).

The critical z-limit for one-sided lower tailed hypothesis test: z-crit= -1.645 and the
region of acceptance is z ≥ - 1.645.

The decision rule for accepting or rejecting Ho is stated as followed:

 Accept Ho: if z-stat falls at or above -1.645

 Reject Ho: if z-stat falls below -1.645

 Step 3: Calculation of the sample statistics (z-stat)

Given 𝑥= 18; n= 80 and 𝜎= 3. Let first find the standard error:

𝜎 3
√𝑛 √80
= = 0.3354

18−15 3
0.3354 0.3354
Then z-stat= =

= 8.9445

This z-stat value indicates, the sample mean of 18 minutes lies 8.9445 standard error
above the null hypothesis population mean of 15 minutes.

 Step 4: comparison

The sample statistics z-stat is compared to the decision rule in order to decide if it is
close enough to the null hypothesis population to accept Ho.

Since z-stat= 8.944, it lies inside the region of acceptance of z ≥ -1.645. The sample
evidence is not convincing enough to reject Ho in favour of H1, thus accept Ho at the
5% level of significance.

Interpretation of the results:

It can be concluded that with 95% confidence that the average time spending by client
in the queue at the bank is not less than 15 minutes and therefore the manager’s
claim cannot be supported.

QUESTION 5:

a) Identification of the dependent (x) and independent variables (y).

X= Logical reasoning score

Y= Performance score

b) Calculation of the correlation coefficient (r).

The following formula is used to calculate the correlation coefficient:

𝑛∑𝑥𝑦− ∑𝑥∑𝑦
√𝑛 ∑ 𝑥 2 −(∑𝑥)2 ×[𝑛∑𝑦 2 − (∑𝑦)2 ]
r=
 X Y XY 𝑋2 𝑌2

7 82 574 49 6724

6 74 444 36 5476

5 82 410 25 6724

4 68 272 16 4624

5 75 375 25 5625

8 92 736 64 8464

The tables gives: ∑𝑥 =35; ∑𝑦 =473; ∑𝑥 2 = 215; ∑𝑦 2 = 37637; ∑𝑥𝑦 =2811 and n=6.

(6)(2811)− 35 ×473
√1290−(35)2 × [225822 −
Then r=

(473)2 ]

16866−
16555 √65
=

× 2093

311
√13604
=

r = 0.8431

 Interpretation:

The correlation coefficient r= 0.8431, this implies a strong, positive statistical

association between the logical reasoning score and the performance score. Thus,
the number of employees undertaking the logical reasoning is a good test to predict
the job performance that the company can expect to hire employees.