Business Statistics

GABORONE UNIVERSITY COLLEGE OF LAW AND PROFESSIONAL STUDIES
DIPLOMA IN PURCHASING
LEVEL 1 SEMESTER 2
MID-SEMESTER EXAMINATION
MARCH-APRIL 2023
BUSINESS STATISTICS
TIME: 3 HOURS
TOTAL MARKS:70
INSTRUCTIONS TO THE CANDIDATES
 Answer ALL Questions

 Clearly number each question and Each section appropriately
 Take note of marks allocated to each subsection of a question
 All queries should be directed to the invigilator
 You can answer questions in any order
Candidates caught cheating will be disqualified
Question 1
(a) Express:
(i) 458,000 correct to 2 significant figures
(ii) 9/57 as a percentage correct to 2 decimal places
(iii) 0.7825 as a percentage correct to 3 decimal places
(iv) 2,973,490 correct to 3 significant figures
(v) 76% as a decimal
(vi) 65% as a fraction in its simplest (12)
(b).The profits of a food retailing company are shared between its three partners, Mr Wright, Mr Prakash and Mr
Young, in the ratio 1:2:4 respectively. If Mr Prakash’s share of the profits is £1,600, calculate:
(i) The share of the profits received by Mr Wright (4)
(ii) The difference between the share of the profits received by Mr Wright and
Mr Young (3)
(iii) The ratio of Mr Prakash’s share of the profits in terms of Mr Young’s share of the profits, expressing your
answer in the form 1:n (3)
(c) Bernard obtained P4000 as share of from the proceeds of a projects, Bernard‘s share represented 60% of the
proceeds. What were the total proceeds of the projects (3)
QUESTION 2
a) 18 + x = 5x – 2 (5 marks)
b) x + 3 = 8 − 2x (5 marks)
c) 5/6 of employees at a small company received a bonus this month. If 32 received a bonus, how many people
do the company employ? (5 marks)
d) A sales assistant is paid a basic wage of P100 per week plus commission of 5% of the Value of the
goods sold. What will be the earnings in a week in which the assistant sells goods to the value of
P1,890 (5 marks)
QUESTION 3
a. The demand for a product on each of 20 days was as follows, (in units).
3, 12, 7, 17, 3, 14, 9, 6, 11, 10, 1, 4, 19, 7, 15, 6, 9, 12, 12, 8
Calculate arithmetic mean [5 marks]
b. From the following data, calculate arithmetic mean [10 marks]
Daily demand Frequency
>0≤5 4
> 5 ≤ 10 8
> 10 ≤ 15 6
> 15 ≤ 20 2
c. Find the median of the following values:
(i) 8, 6, 9, 12, 15, 6, 3, 20, 11. [5 marks]
(ii) (ii) 8, 6, 7, 2, 1, 11, 3, 2, 5, 2[5 marks]
END OF EXAM
MARKING KEY
Question 1.
a) 5+6X8
5+48
= 53.
(3 Marks )
b) (3x1)x2
3x2
=6
(3 Marks )
c) 9-7/2
9-3.5
=5.5
(3 Marks )
d) (4+5)/10
9/10
=0.9
(3 Marks )
e) 5+7x8-2
5+56-2
61-2
=59
(4 Marks )
f) (9-1)x(6+4)
8x10
=80
(4 Marks )
2)
a) x+6=18
x=18-6
x=12
(3 Marks )
b) 3x +3=21
3x=21-3
3x=18
X=6
(3 Marks )
c) 2x-3=15
2x=15+3
2X=18
X =9
(3 Marks )
d) x+3=8-2x
x+2x=8-3
3x=5
X=3/5
(3 Marks )
e) 3x-6=x+8
3x-x=8+6
2x=14
X=7
(4 Marks )
F 21-x=15
X=15-21
X=-6
(4 Marks )
3.
a) Mean 74+74+71+71+66+64+63 =483

7
= 69
b) Median 74,74,71,71,66,64,63
= 71
c) Mode 74 and 71.
4.
Mean – This is the total average . It is calculated by adding up all numbers then divide them by their frequency .
Prons –
All Data is Used
The biggest advantage of mean is that all the data is taken into account for calculating mean of the data and
hence no data is left out which results in mean having the representation of all the data and therefore it will
be giving accurate results.
Simple to Understand and Calculate

Another advantage of mean is that it is very easy to understand and calculate and therefore any individual
having basic mathematics knowledge can understand and compute the mean from available data.
Finite and not affected by sample

Another benefit of mean is that it gives a finite figure for any kind of data and also it is least affected by
fluctuations of sampling and therefore one does not get confused as the result is in a finite form capable of
analysis for the end user.
Disadvantages of Mean
Distortion Due to Extreme Values

The biggest disadvantage of mean is that extreme values can result in wrong calculation of mean because
suppose in the above example if 60 and pounds is replaced by 150 and 200 pounds than the mean figure of
94 pounds will be wrong as 2 extreme values has changed the whole mean figure and therefore not truly
representing the correct picture about the data.
Large Data Problem

If the data under consideration is too large than it is not feasible to compute mean of all data as it will be
time-consuming and also not practical and therefore mean cannot be used for very large data. Hence if
there are millions of data points then naturally calculation of mean will not be possible for such large data.
Problem of Percentage and Ratios

If the data is in the form of percentage or ratios than it will be very difficult to calculate mean of such data
and therefore it is very difficult to use for those data which are in the form of ratios or percentage.
Mode
Mode refers to that one value in a series of variables which comes with the highest frequency. In simple
words, it refers to that value which comes the highest number of time.
Disadvantages of Mode
May not represent the Data Accurately

Another limitation of the mode is that it may not represent the data accurately. Hence in the above
example, if 3, 5 and 6 are replaced by 100, 200 and 300 then also mode will be same which not correct
representation of the data. Hence one should be careful while analyzing the data only on the basis of mode
if series under consideration have extreme values.
Other Values become Insignificant

The biggest disadvantage of the mode is that other values are not taken into consideration. Hence in the
above example other values like 3, 5 and 6 are of no use and only number 2 matter as it has appeared 2
times.
No or Multiple Modes
Another limitation of the mode is that sometimes it may be possible that there is no mode if there is no
number or value which is appearing more than one time. Conversely, sometimes situations may arise when
there is more than one mode that is when 2 or more values comes the same number of time in a series.
Median
Median is a measure of central tendency which is used to calculate the middle value of series of numbers. In
order to calculate median one has to arrange the numbers first in ascending order and then find the middle
value from that series of numbers.
Advantages of Median
Simple to Understand and Easy to Calculate

The biggest advantage of the median is that very simple to understand as you have to arrange any data first
in ascending form and then find out the middle value from that arrangement and hence any individual with
basic mathematics knowledge can learn this method and find out the median value of any data. Besides
calculation part is also very easy unlike mean where one has to add all numbers and then divide it median
requires no addition or division as one has to simply arrange the numbers in ascending order and find the
middle number.
Not Affected by Extreme Values

Another advantage of the median is that it does not get affected by an extreme value which is the case
with mean.
Disadvantages of Median
Large Number of Items

This method is not practical when there are thousands of items in the data because one has to arrange that
data first in ascending order and then find the median value which naturally will take lot of time and effort
of an individual and hence when the data is huge than median method is not feasible as it will be time-
consuming and impractical.
Problem with Even Observations

In case of median if there are odd numbers of observations that one gets the exact median which is the case
with above example but if there were even numbers of observations than one had to average the 2
numbers which are in middle and one would have got an approximate figure of the median.
Does not take into Account all Items

In case of median the middle value is given the most significance and therefore other values are not taken
into account or given significance which again is a major limitation of some data set or observations.
Percentage or Fraction
If data is in percentage or fraction than one will find it difficult to calculate median of those observations
and hence when it comes to fraction or percentage median may not be the ideal method for calculation.

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GABORONE UNIVERSITY COLLEGE OF LAW AND PROFESSIONAL STUDIES

INSTRUCTIONS TO THE CANDIDATES

 Answer ALL Questions

3, 12, 7, 17, 3, 14, 9, 6, 11, 10, 1, 4, 19, 7, 15, 6, 9, 12, 12, 8

Calculate arithmetic mean [5 marks]

b. From the following data, calculate arithmetic mean [10 marks]

Daily demand Frequency

c. Find the median of the following values:

(i) 8, 6, 9, 12, 15, 6, 3, 20, 11. [5 marks]

(ii) (ii) 8, 6, 7, 2, 1, 11, 3, 2, 5, 2[5 marks]

a) Mean 74+74+71+71+66+64+63 =483

c) Mode 74 and 71.

Simple to Understand and Calculate

Finite and not affected by sample

Distortion Due to Extreme Values

Large Data Problem

Problem of Percentage and Ratios

May not represent the Data Accurately

Other Values become Insignificant

Simple to Understand and Easy to Calculate

Not Affected by Extreme Values

Large Number of Items

Problem with Even Observations

Does not take into Account all Items

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