I10064664-E1 - Statistics Study Guide PDF

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Statistics
Study Guide
I10064664
Edition 1
*I10064664-E1*
I10064664-E1
STATISTICS
Study Guide
CONTENTS PAGE
Using this Guide 1
Study Schedule 2
Study Session One: Exploratory Data Analysis 3
Study Session Two: Probability 8
Study Session Three: Correlation and Regression Analysis 9
Study Session Four: Time Series Analysis and Indices 10
Study Session Five: Sampling, Limitations and Uses of Statistics 11
Study Session Six: Revision 13
Assignment 1 37
Assignment 2 41
Useful Formulae 47
Assignment 3 53
____________________________________________________________________________
Statistics / © ICG
PRINTING HISTORY
1st Edition August 2017
 INTERNATIONAL COLLEGES GROUP (ICG) PTY. LTD. 2017

1 Boundary Road, Century City, Cape Town, 7441, South Africa
_______________________________________________________________________
This document contains proprietary information that is protected by copyright. All
rights are reserved. No part of this document may be photocopied, reproduced,
electronically stored or transmitted, or translated without the written permission of
ICG.
_______________________________________________________________________
Statistics / © ICG / (ii)
USING THIS GUIDE
This study guide acts as a guide to the study of your prescribed work. It
divides your course into manageable section for study, called study sessions.
Study sessions
Before each study session read the relevant page in this guide. It will contain
many unfamiliar terms and ideas. Then read and study the prescribed units.
After that when you re-read the section in this guide you should be able place
the topic in an overall context, and be able to understand any supplementary
notes given.
At the end of the study sessions submit the assignments to the College for
marking. It is important that you do the assignments without reference to your
notes so that you become practised at recognising questions and applying the
correct techniques and or formulae.
Study schedule
The study schedule which follows summarises the study session topic and
sets out the prescribed reading and assignments.
Prescribed reading
Prescribed work will be in the form of study units (indicated by a serial

number). You will find these references in the 'Prescribed Reading' column of
your study guide.
We recommend the use of Wheldon's Business Statistics by G L Thirkettle, as

well as four other sources:
(a) Statistics. W M Harper.

(b) Statistical Methods and Financial Calculations. Willemse.
(c) Statistical Methods and Fundamental Calculating. Thirkettle.
(d) Applied Business Statistics. Wegner.
Thirkettle is particularly useful. You should try to obtain a copy because it

contains many exercises to assess your ability in each section of work.
Passing a course in statistics depends heavily on your doing many, many

exercises YOURSELF. If you have access to a library, or can borrow or buy one
of the books mentioned above, do so, so that you can have another source of
exercise questions.
____________________________________________________________________________
Statistics / © ICG / Page 1
STUDY SCHEDULE
The purpose of this schedule is to link the various study sessions with their
corresponding study units and assignments for your convenience. It enables
you to see, at a glance, where the material for each study session can be found
and which assignment you are required to write on the completion of the study
sessions.
Study Topics Prescribed Submit these

session Reading assignments to
the College
One  Exploratory data analysis I10064665

 Sources of Statistics I10064666
Two  Probability I10064667

I10064668
Three  Correlation and regression I10064669

analysis I10064670
Four  Time series analysis and I10064671

indices I10064672
Five  Sampling and limitations I10064673

I10064674
Six  Revision of all work Assignment 1

(I10064664-A)
Assignment 2
(I10064664-B)
Assignment 3
(I10064664-C)
____________________________________________________________________________
STUDY SESSION ONE: EXPLORATORY DATA ANALYSIS
Reading for this study session
 I10064665 (Graphs and Frequency Tables)

 I10064666 (Measures of Location, Dispersion, Skewness and Kurtosis)
Discussion
Statistics is the science of decision-making in the face of uncertainty. In all

businesses we are faced with making decisions. Statistics enables us to make
use of numerical information which reduces the chances of opting for the
wrong decision.
However, numbers are very intimidating to many people. The first thing that
has to be done with a mass of numbers is to display and summarise it in an
easily understandable manner. Similarly, if we are faced with a statistical
summary or graph we must be able to interpret it and relate it back to the
problem.
The data summaries that you learn about now are the backbone of the course.
They will be referred to often in the course, so it is essential that you grasp the
concepts well.
Frequency tables are often used to summarise a data set. They are also the
basis for drawing histograms and many other 'pictures' of the numbers. You
should be able to construct a frequency table from a data set and convert the
table into a suitable graph. Pay particular attention to the guidelines/rules for
graph drawing: a graph which doesn't have a title, source, description,
properly labelled axes, and so on is as confusing as the data set. Remember
that every data summary (frequency tables, histograms, line charts) must
include its source.
When you attend presentations at work, read the newspaper or a magazine,

keep an eye open for any misrepresentations of data. You will find that there
are very few articles on business which do not rely on numbers for backing;
and you will be surprised how very little people know about the numbers
they're using.
Measures of location (also known as measures of central tendency) give a

typical value of a data set, while measures of dispersion and skew tell us
something about how the rest of the data are spread out around the typical
value. Most people use typical values (averages), but never report anything
about the spread or symmetry of the data.
You must be able to compute the various measures from grouped data and
you should know the advantages and disadvantages of each measure.
In addition to the units of prescribed reading, you should also study the
following notes.
____________________________________________________________________________
The harmonic mean
We require that you know how to calculate another measure of location: the
harmonic mean. This mean is used for computing the average rate at which
something happens in cases such as the following:
A car travels at 100 km per hour to George and then back again at
120 km per hour. What is the average speed?
The important thing to notice in the example is that it is 'unfair' to just

calculate the arithmetic mean of the two speeds, because if we travel the same
distance at 120 km per hour we will be on the road for less time than if we
travelled at 100 km per hour. We need to put a higher weight on the
100 km per hour because that is the speed at which the car travels for longest.
For every hour that we spend at 100 km per hour we spend 100 to 120 hours
at 120 km per hour. The weighted arithmetic mean (with weights equal to the
amount of time travelled) is equal to:
100 km/h  100

120
km/h
1  100
120
This equation can be simplified down to:
1
 109,09 km/h
1 1

2 100
 120
1

which is interpretable as the reciprocal of (one over) the arithmetic mean of the
reciprocals.
If the car had travelled for three hours in one direction at 100 km per hour
and then travelled for another three hours at 120 km per hour then the
average speed would have been the simple arithmetic average, in other words,
110 km per hour.
In general, the harmonic mean of n numbers, x1, x2, ..., xn is:
1
1
n  1
x1  1
x2
 ...  1
xn 
____________________________________________________________________________
Standard deviation
Unless asked otherwise, always use the formula for the standard deviation (or
variance) with n  1 rather than n.
Gantt progress chart
Another special type of chart is the Gantt progress chart. This is just a bar
chart on its side which indicates how far a project has come relative to its
expected progression at particular dates. It enables us to see at a glance
whether or not we are behind or ahead of a scheduled completion date, and in
which time-period we made up or lost time.
For example, consider the case where we have to construct 5 000 pairs of
shoes in five weeks. Because of anticipated electricity cuts, public holidays,
drops in motivation, and so on, we might schedule production for each of the
weeks to be:
Week Quota (scheduled number

number of shoes to be made)
1 1 200
2 1 000
3 1 400
4 800
5 600
Suppose that actual output in the first week was 960 pairs of shoes, which is
80% of the planned output of 1 200. We would, therefore, plot a line in the
Gantt chart representing 80% of the length of the block assigned to week one.
We also take note that on a cumulative basis actual output (960) is 80% of
planned output (1 200). We therefore also plot a thicker line representing
cumulative performance which goes 80% of the length of week 1's block.
If, in the second week, actual output is 1 500, we would plot a line
representing the week's performance which went the whole length of the block
for week two and then another line in the same block which goes 50% of the
length of the block for week two. This represents that actual performance has
been 150% of planned performance.
The cumulative planned output is now 2 200 (= 1 200 + 1 000) and the actual
output is 2 460. This implies that 260 units allocated to week three have
already been completed. The quota allocated to week three is 1 400, so
260  1 400 = 18,57% of that week's work has already been done. Therefore we
draw the cumulative bar from the beginning of week one right through to
18,57% of the way into week three.
We can continue in this fashion as each week's actual output becomes known.
We can see at each stage how far along the project is, and in which weeks
planned performance was exceeded or not met.
____________________________________________________________________________
Gantt Progress Chart
(a) Gantt Chart at end of week 1:
Week 1 2 3 4 5
Quota 1 200 1 000 1 400 800 600
Actual
Cumulative
(b) Same Gantt Chart at end of week 2:
Week 1 2 3 4 5
Quota 1 200 1 000 1 400 800 600
Actual
Cumulative
Coefficient of quartile deviation
We prefer another definition of the coefficient of quartile deviation to that

which appears in unit I10064666. Instead of defining it as:
1
2
(Q 3  Q1 )
Q* 
median
where Q1 is the lower quartile and Q 3 is the upper quartile, it can also be
defined as:
1
2
(Q 3  Q1 )
Q*  1
2
(Q 3  Q1 )
(Q 3  Q1 )

(Q 3  Q1 )
Use the second definition in all exams and assignments.
____________________________________________________________________________
Some further comments about graphs and charts
In drawing up charts and graphs it is important to remember what is being

represented and why. For example, a histogram shows how often a variable
takes on a particular value; a Z-chart shows the monthly sales, the cumulative
sales for the year and the moving annual total. From the Z-chart one can see
the following:
 The monthly sales give an indication of the seasonal variations in sales.

 The cumulative total line shows how sales have progressed through the
year.
 The moving annual total highlights the long-term trend in sales.
It is also instructive to look carefully at how the various lines on the graph are
drawn. Often they can be used to derive a piece of information which does not
appear to be at hand. For example, in a Z-chart, we might have the following
information:
Monthly sales Moving annual total (MAT)
November 2 000 20 000

December 3 000 22 000
We might be asked what the sales in the previous December were. This is a
very difficult question unless one realises that the moving annual totals
actually contain the information required. After all, the November MAT
contains the sum of all monthly sales from December the previous year
through to November this year.
MAT(November) = December (last year) + January (this year) + November (this

year)
and:
MAT(December) = 9am (this year) + ... + December (this year)
The difference between MAT(December) and MAT(November) is the same as the

difference in sales between December last year and December this year. So:
MAT(December) – MAT(November) = December (this year) – December (last

year)
 22 000 – 20 000 = 3 000 – December (last year)

 2 000 = 3 000 – December (last year)
 December (last year) = 1 000
which is what is required.
Whenever you come across a question asking for information not given to you,
look at the definitions of the numbers that are given to you.
____________________________________________________________________________
STUDY SESSION TWO: PROBABILITY
 I10064667
 I10064668
Discussion
While Study Session One concentrated on displaying and summarising sets of

numerical data, we look in this study session at a theoretical framework in
which to use the numbers and hence make decisions.
We define what a probability is and how we can use it to clarify such vague
terms as 'likely', 'chances are', and so on. Statistics is usually used when we
have incomplete information, for example, when we only know part of the story
and we want to use that information to reduce the uncertainty surrounding
the whole problem. We look at the basic rules of probability and the use of
combinations and permutations to count up the number of possible outcomes
in a random experiment.
The diagrams on pages 27 and 28 of I10064667 are sometimes known as tree

diagrams.
We also look at some standard probability distributions. Quite a wide class of

situations follow standard patterns: that is, the formulae are the same but the
parameters vary. The binomial, poisson and normal distributions are
commonly encountered in the business world. You have to be able to recognise
them when they occur and then be able to use the standard formulae to
calculate the probabilities of various events happening.
In statistics, success comes only through doing many, many examples. On

their own the principles appear quite easy, but recognition of a situation in
which to apply them is more tricky. It is essential that you work through all
the examples and do all the exercises and assignment questions.
When you are sure that you understand the work for this study session and
have done all the self-assessment questions, write Assignment 2 and send it to
the College for marking.
____________________________________________________________________________
STUDY SESSION THREE: CORRELATION AND
REGRESSION ANALYSIS
 I10064669 (Correlation)
 I10064670 (Regression)
Discussion
In this study session we look at the relationships between two variables and
how we can use knowledge about one variable to predict the value of the other.
Correlation measures the degree to which two variables move together and
regression involves actually specifyingd (mathematically) the relationship and
using it for interpolation or extrapolation.
In the exam you will nearly always be given a question in which you have to
calculate a correlation coefficient, interpret it and then fit a regression line.
You should know the assumptions on which the correlation coefficient is
calculated and in which circumstances it is applicable.
____________________________________________________________________________
STUDY SESSION FOUR: TIME SERIES ANALYSIS AND INDICES
 I10064671 (Time Series)

 I10064672 (Indices)
Discussion
These two units deal with statistics which frequently occur in business. Many
data sets comprise figures which represent sales, profits, expenditure, rainfall,
and so on, through time. In time series analysis you must know what the
components are, and how to compose a data set. The use of moving averages,
trend lines and seasonal indices occurs often in business and exams, and you
should be able to compute the relevant numbers and also explain on what
assumptions you're basing them and what use they are.
A particular form of time series is an index. An index indicates the relative

level of some variable, for example, the average value on the stock market
compared with some other time, or the average price of goods in the store
today as opposed to yesterday. Indices are used to compare relative levels
through time and since their use is widespread it is important to know how
they are constructed and what their different advantages and disadvantages
are. The Laspeyres and Paasche indices are probably the most commonly
used.
____________________________________________________________________________
STUDY SESSION FIVE: SAMPLING, LIMITATIONS
AND USES OF STATISTICS
 I10064673 (Sampling)
 I10064674 (Uses, Limitations and Approximations)
Discussion
Statistics relies heavily on numerical information. The accuracy and

appropriateness of the data are therefore paramount in a statistical analysis.
The use of sophisticated mathematics on data which have nothing to do with
the problem is a complete waste of time.
Sampling (which just means the taking of a sample from the population under
investigation) is one of the most important stages of an analysis. It is often
unnecessary to do any complicated maths at all if the sample is well chosen 
the salient points will be obvious in a good sample; it is only in poorer samples
that maths is needed.
The reporting of figures in frequency tables, graphs, summaries, and so on is

the culmination of an analysis. It is what the decision-makers will look at.
Clear presentation and no spurious accuracy must be ensured.
For any particular problem some data are going to have to be collected
specifically, but you must also put an analysis into perspective by comparing
results with other companies, previous years, and so on The use of published
sources of statistics is therefore an important part of statistics. You must
remember always to include the source of your statistics or data at the bottom
of the table, graph or report that you present. Without that, you should regard
any results with suspicion, because, as already pointed out, the data (source
of statistics) are the most important part of the analysis. (Look in newspapers,
magazines and other media for examples of statistics being quoted without
giving the source of the data.)
Apart from the 'laws' of multiplication and addition described in Study Session
Two, there are two others which are sometimes discussed. They are the laws of
inertia of large numbers and statistical regularity.
Statistical regularity states that samples taken at random from a population

will, on average, be representative of the characteristics of the population. That
is, a large sample is often a very good indicator of what the population is like,
provided the sample is taken at random and that no one particular item is
likely to sway the results. Inertia of large numbers is closely related to
statistical regularity. It states that large groups are more stable than small
ones: for example, if we take 10 samples of size 100 from a population there
will be less variation in their means than 10 samples of size 10.
Ratios and percentages often cause a lot of trouble. The following example
suggests two ways of solving a more difficult problem.
____________________________________________________________________________
EXAMPLE
Suppose that in a certain country the VAT rate is increased from 10% to 14%.
The government notices, however, that the tax revenue drops by 10% even at
the higher rate of VAT. By what percentage did spending decrease to cause the
10% drop in tax revenue? (Assume that there are no tax-exempt items.)
Solution
The three pieces of information we are given are:
1. Revenue (10% VAT) = Spending (10% VAT)  10%

2. Revenue (14% VAT) = Spending (14% VAT)  14%
3. Revenue (10% VAT)  90% = Revenue (14% VAT)
because revenue after the change drops by 10%, that is, revenue after the
change is 90% of the revenue before the change.
Using the information in (3) in equation (2) we have:

(4) Revenue (10% VAT)  90% = Spending (14% VAT)  14%.
Now, using the information in (1) in equation (4):
 Spending (10% VAT)  10%  90% = spending (14% VAT)  14%

0,1  0,9
 Spending (10% VAT)  = spending (14% VAT)
0,14
 Spending (10% VAT)  64,3% = spending (14% VAT)
 Spending at 14% VAT is (100 – 64,3) = 35,7% below that before the
change.
Alternative solution
Suppose spending before the change was R100. Then the revenue before the
change would have been 10%  R100 = R10.
After the change, revenue has decreased by 10%, that is, it goes down from
R10 to R9. The R9 represents the revenue after the change, which is equal to
14%  spending after the change.
Dividing R9 by 14% (or 0,14) we get spending to be R64,29.
This is a decrease of R100 – R64,29 = R35,71, from the spending before the
change.
35,71
= 37,7% drop in spending
100
____________________________________________________________________________
STUDY SESSION SIX: REVISION
Before you start each assignment, you should revise all your notes again. Also
go over any sections which were confusing or difficult.
Do the assignments under exam conditions, in other words, time yourself

strictly (where the recommended time is given), and do not refer to your notes
or any other material.
Self-assessment Questions 1
Question 1
The following data are the amounts of money (to the nearest R10)
which 30 households in a suburb reported having budgeted for
entertainment for the next three months.
210, 250, 260, 260, 300, 350, 360, 360, 370, 380, 390, 400, 420,
420, 430, 450, 450, 460, 460, 470, 490, 500, 500, 550, 580, 620,
670, 720, 750, 970.
(a) Construct a frequency table with class widths of R100.
(b) From the table draw a histogram and a frequency polygon.
(c) Draw the 'cumulative less than' ogive and show how you
would read off the lower quartile.
(d) From the ogive estimate the number of people who have
budgeted between R450 and R500.
Question 2
(a) From the data in the table, compute the following:
i. The mean
ii. The median
iii. The mode
iv. The standard deviation
v. The variance
vi. The range
vii. The quartile deviation
viii. The coefficient of variation.
____________________________________________________________________________
Wages (R) Number of employees
R50  59,99 8
60  69,99 10
70  79,99 16
80  89,99 14
90  99,99 10
100  109,99 5
110 119,99 2

(b) Why would all these figures be considered approximate?
Question 3
The arithmetic mean is the average of all the numbers in a data set. Therefore, it
is the best measure of location.
Discuss the statement above.
The data set below represents the annual salaries for a small publishing
concern. Use it to illustrate points you make in your discussion.
Number in Pay-class Salary in pay-class

pay-class
1 General Manager R100 000
2 Managers R 60 000
3 Reps R 20 000
4 Administrative assistants R 18 000
10 Packers R 13 000
1 Messenger R 7 000
Your answer should include reference to the shape of the distribution;

why the simple arithmetic mean is indeed most often the most suitable
measure of location; how different means can provide very different
measures of location of the same data set and therefore how
management and a labour union may use these differences in a wage
dispute; which mean is the most suitable for this data set; and so on.
Question 4
Use the data from question 3 to draw a Lorenz Curve. Interpret the
diagram.
Question 5
Draw a histogram with a positive skew and indicate the position of the
mode on it. What is the approximate relationship between the mean,
mode and median? Show, on your histogram, the relative positions of
these points and explain how you would calculate them if you had the
frequency table from which the histogram was drawn.
____________________________________________________________________________
Question 6
Outline ten rules for drawing graphs and give a simple example for
each rule of how not complying with them can be used to misrepresent
data, or may confuse the reader.
Question 7
(a) For the following data set which shows the frequency
distribution of the daily rainfall figures (in mm) of a rural
town, compute the median and mean. Which do you think is
the more appropriate measure?
Rainfall (mm) Frequency (number of days

in the last 2 years)
1  100 20
101  200 10
201  300 2
301  400 5
401  500 0
501  600 0
601  700 3
(b) Calculate the Pearson measure of skewness. If you had been

told the value of the coefficient of skewness, would it have
helped you decide which measure of location was preferable?
Question 8
(a) For the data in question 7, calculate the coefficient of

variation. Use it to compare the spread of the data with that in
question 2.
(b) Calculate the range and quartile deviation (semi-interquartile

range).
(c) What is the main advantage of the quartile deviation as a

measure of dispersion over the range and standard deviation?
(d) Give three reasons why the standard deviation is generally

considered a better measure of dispersion than the range.
Question 9
Write a brief note on 'weighting' when calculating arithmetic

means.
____________________________________________________________________________
Suggested answers to Self-assessment Questions 1
Question 1
(a) Frequency table.
Class widths Tally Frequency Cumulative 

frequency
200  299  4 4
300  399   7 11
400  499   10 21
500  599  4 25
600  699  2 27
700  799  2 29
800  899 0 29
900  999  1 30
30
(b)
200 300 400 500 600 700 800 900 1 000

Household budgets R('000s)
(axis titles & units, histogram, polygon)
____________________________________________________________________________
(c)
30
25
21
20
(d)
16
15
10
200
300 400 500 600 700 800 900 1 000
Household budgets R('000s)
(correct ogive line)
([m ]  1)
l =
2
15,5  1
=
2
= 8,25 Read off at: R360 000
(d) Read off between R450 and R500 (see graph)
21  16 = 5 households
Question 2
Wages 2 2
f CF x D fD fD fx fx
50  59,99 8 8 55 2 16 32 440 24 200
60  69,99 10 18 65 1 10 10 650 42 250
70  79,99 16 34 75 0 0 0 1 200 90 000
80  89,99 14 48 85 1 14 14 1 190 101 150
90  99,99 10 58 95 2 20 40 950 90 250
100  109,99 5 63 105 3 15 45 525 55 125
110  119,99 2 65 115 4 8 32 230 26 450

65 31 173 5 185 429 425
____________________________________________________________________________
 fx  fD
(a) i. Mean: x = or x = A+ C
f f
5 185 31
= = 75 +  10
65 65
= R79,77 = R79,77
n 1 66
ii. Median: Rank: =
2 2
= 33
(Rank  Less)
Value = Min. +  (Max.  Min.)
Freq.
33  18
= 70 +  10
16
= R79,38
(f mod  fless )
iii. Mode: Z = Min. +  (Max. – Min.)
(f mod  fless )  (f mod  f more )
(16  10)
= 70 +  10
(16  10)  (16  14)
= R77,50
 fD 2 ( fD )2
iv. Standard deviation:  =  C
n n
2
173  31 
=    10
65  65 
= 15,6
OR
( fx )2
 fx 2 
 = n
n 1
2
 5 185 
429 425   
=  65 
64
= 15,7
v. Variance: 2 = (15,6)2
= 243,36
____________________________________________________________________________
vi. Range: x(n)  x(l) = 119,99  50 = 69,99
Q (u )  Q (l ) 90,97  68,25
vii. Quartile deviation: = = 11,36
2 2
 15,6
viii. Coefficient of variation: = = 0,1956
x 79,77
(b) These answers will all be considered approximate because

they have been calculated with mid-point values.
In a grouped data set, none of the actual figures are used; only
the mid-point values are used.
Question 3
Rough histogram
No. in
pay-class
Rands
Mode
Median
The histogram is positive skew. (Sketch or explanation)
This implies that there are extreme values (outliers) to the right of the mean.
The arithmetic mean has one serious drawback  it is very sensitive to

outliers.
Total salary
The arithmetic mean =
Total jobs
= R36 333
The median = R13 000
The mode = R13 000
The data set has the mathematical properties to use the weighted mean
(number in pay-class = weight).
____________________________________________________________________________
 fx
Weighted mean =
f
= R23 285
The weighted mean is much closer to the median. Although the

arithmetic mean is easy to calculate and readily interpretable, the
weighted mean is the most suitable in this case.
Question 4
Frequency Total amounts
No. % Cum % No. % Cum %
1 5 5 100 20 20
2 10 15 120 25 45
3 14 29 60 12 57
4 19 48 72 15 72
10 47 95 130 27 99
1 5 100 7 1 100
21 100 489 100
100
90
80
70
60
50
40
30
20
10
0 10 20 30 40 50 60 70 80 90 100
% Total amounts
Lorenz curve
(correct axis, curve, straight line)
Interpretation: 15% of employees receive 45% of total income or

85% of employees receive 55% of income.
____________________________________________________________________________
Question 5
Mode Median Mean
The outlying values are positive to the right of the mean. Therefore, the
mean is to the right of the median and the mode.
The approximate relationship is Mode = Mean  3 (mean  median).
 fx
Mean: x =
f
Mode: Z = Min. +
 fmod  fless   (Max.  Min.)
 fmod  fless    f mod  f more 
(Rank  Less)
Median = Min. +  (Max.  Min.)
Freq.
Question 6
The following are ten rules for drawing graphics:
1. The independent variable is on the x-axis (horizontal).
2. Zero-line: when the graph is concerned with absolute changes in

quantities include 0 on the vertical axis.
3. Co-ordinate lines must be clear.
4. 100% Line (as basis of comparison) must be emphasised.
5. Clarity: do not use more co-ordinate lines than necessary.
6. Lettering should be horizontal in orientation.
7. Scales should be placed on the left and bottom of the graph.
8. Always include units.
9. When there is more than one curve distinguish them clearly. Limit the
number of curves.
10. Every graph must have a description title.
(Student must give own examples to each rule.)
____________________________________________________________________________
Question 7
 fx
(a) Mean = 168,2 ( A = 50,5) / Also accept 167.5 ( )
f
n
Median = 105,95 (Rank = 20,5) / Also accept 101 (rank = )
2
Mode = 67
Std. dev. = 169,9 / Also accept 162.29
Because of the skewness, the median is more appropriate.
(b) Pearson measure of skewness:
mean  mode or 3(mean  median)

std. dev std. dev
168,2  67 3(168,2  105,95)

= =
169,9
169,9
= 1.099
= 0,60
Question 8

(a) Coefficient of variation Q7  =
x
169,9
=
168,2
= 1,01

Q 2  =
x
= 0,196
The rainfall pattern shows a much bigger variation than the wages.
(b) Range = 700  1 = 699
Quartile deviation =
x (u )  x (l ) 
2
225,75  52,97
=
2
= 86,39
(c) The range and the standard deviation are both sensitive to
extreme values.
____________________________________________________________________________
(d) i. It takes every value in the data set into account.
ii. It is stable.
iii. It is mathematically exact.
Question 9 (Any three)
The weights are the frequencies of each event. It therefore

takes into account not only the total number of events, but
the product of the frequency and the event. It gives a much
more accurate average because frequency is also considered.
The simple arithmetic mean is a special case of the weighted
mean, where the weight = 1.
Question 1
(a) Using the information below, construct a diagram to show
graphically the relationship between the number of exercises
attempted and the final mark in a professional examination.
(b) Calculate the coefficient of correlation between the number of

exercises attempted and the final mark. Interpret the result,
mentioning what the coefficient of determination is and what
it represents.
Student Number of Final mark (%)
exercises
1 10 30
2 33 82
3 15 49
4 20 60
5 18 54
6 32 85
7 30 76
8 5 28
9 16 50
Question 2
(a) Explain briefly what is meant by linear correlation between

two variables. Use a graph if necessary.
(b) If the data below represent the number of years of study and
the wage earned by a sample of 10 women, calculate:
i. the covariance of the two variables;

ii. the coefficients of variation of the two variables; and
iii. the variances of the two variables.
____________________________________________________________________________
Person Years of study Wage (R'000s)
1 12 15
2 17 32
3 14 20
4 15 24
5 13 21
6 10 14
7 14 26
8 15 25
9 16 28
10 11 16
Question 3
(a) Discuss briefly (giving several examples) the difference
between correlation and causation.
(b) Calculate the regression equation between the two variables in
question 2 which will enable us to estimate how many years of
education a woman has had if we know her salary.
(c) Predict how many years of education a woman who now earns
R40 000 p.a. has had. Explain the assumptions (using a graph
of the data) behind the prediction. Why must we be very
careful about extrapolation, in general?
Question 4
(a) Calculate the regression equation for the data in question 1

which will enable us to predict a mark in the final examination
based on a known number of exercises.
(b) What, briefly, is meant by 'least-squares' regression?
Question 5
Calculate the Spearman's rank correlation coefficient between the
variables in question 2. Contrast the result with the usual correlation
coefficient. In what circumstances might it be possible to calculate
the rank correlation coefficient, but not the usual one?
Question 6
Using a series of scatterplots to illustrate your answer, describe what
positive and inverse correlation are. What is perfect linear correlation?
Explain how perfectly dependent variables can have zero correlation.
(Give approximate values for r, alongside each diagram.)
Question 7
(a) Explain what bivariate means.
(b) Using the data in the frequency table below compute the correlation
coefficient between advertising expenditure and sales. The data
represent the number of months in which advertising expenditure
was in a particular class AND sales were in a certain range.
____________________________________________________________________________
(c) Interpret the result, explaining what the coefficient of
determination means and how it can be used.
Sales (R'000s)
10-19 20-29 30-39 40-49 50-59

100-199 12 3 0 2 0
Ad. expend. 200-299 0 8 3 4 0
(R'00s) 300-399 3 5 14 2 3
400-499 0 8 8 20 5
500-599 0 2 12 13 28
Question 1
(a) (Axis units and titles, correct coordinates)
(b) Correlation Coefficient:

 xy
r =
 x y
181
=
9,33  19,6
= 0,989 
Coefficient of determination = r 2 = 0,989 2

= 0,978
r 2 = amount of change in a variable determined by variable.
____________________________________________________________________________
Question 2
(a) The association between the two variables can be represented

by a straight line on a graph.
dx dy
(b) i.  xy =
n
= 11,2
x 2,1 y 5,65
ii. = =
x 13,7 y 22,1
= 0,153 = 0,256
iii.  x2 = 4,41
 y2 = 31,9
Question 3
(a) The difference between the interpretation of correlation and

causation is subtle. Correlation proves nothing more than that
two variables are related. Some far-fetched conclusions
attributed to spurious correlations can be explained in terms of
hidden variables. These variables are nearly impossible to
identify precisely and to measure.
Causation needs both a theory as to how one variable causes the

other to change and empirical evidence in terms of high
correlation coefficients.
(b) Years of study = x

Salary = y
y = ˆ  ˆx
dx dy
̂ = –12,787 (note "–" must be added) ̂ =
d2x
̂ = 2,547 ̂ = y  ̂x
or
x = ˆ  ˆy
̂ = 0,352
̂ = 5,92
(c) y = ˆ  ˆx
40 = 12,787 + 2,547x 

 x = 20,7  21 years 
____________________________________________________________________________
or
x = ˆ  ˆy
= 5,92 + 0,352  40
= 20
Extrapolation can give extreme figures when the curve is
extended beyond the scatterplot.
Question 4
(a) y = ˆ  ˆx ˆ  y  ˆx ˆ 

d d
x y
d x
2
̂ = 15,7 ̂  2,082
y = 15,7 + 2,082x
(x = 35): y = 15,7 + 2,082  35
= 88,57
(x = 60): y = 15,7 + 2,082  60

= 140,62
One can safely forecast x values that are in the given data set,
for example, 35 is close to the data set, therefore 88% is
relatively accurate. 60 is too far out, therefore 140% is definitely
not accurate.
(b) Least squares regression is the best fitting line through a set
of data points to be that line which has the least sum of
squared residuals.
Question 5
2
X Rank Y Rank d d
12 3 15 2 1 1
17 10 32 10 0 0
14 5 21 20 4 121 2 41
15 7 21 24 6 121 2 41
13 4 21 5 1 1
10 1 14 1 0 0
2 21
14 5 1
2 26 8 6 41
7 1 1 1
15 2 25 7 2 4
16 9 28 9 0 0
11 2 16 3 1 1
14
____________________________________________________________________________
 6 d2 
r = 1   2


 n (n  1 
6  14
= 1
10  99
= 0,915 
 xy
Pearson rank: r =
 x y
11,2
=
2,1  5,65
= 0,944
Rank correlation is used when you are not sure about the normality of
the distribution. This is usually when the sample size is small.
Question 6
Positive correlation Negative correlation
r =  0,8
r = 0,7
The tw o variables increase As the one variable increases,

together. the other decreases.
Zero correlation
Perfect linear correlation
r=1
Variables are independent, y- variable

does not change w ith changes inx.
(For each graph: r, line, description)
Question 7
(a) Bivariate means the use of two variables.
(b) H0 = There is no relationship between sales and

advertising expenses.
Sales (R'000s)
____________________________________________________________________________
f(y)
10  19 20 – 29 30 – 39 40 – 49 50 – 59 d fdy fdy2
y
Ad 100  199 12 (4) 3 (2) 0 (0) 2 (–2) 0 (–4) 17 –2 –34 68
expend 200  299 0 (2) 8 (1) 3 (0) 4 (–1) 0 (–2) 15 –1 –15 15
(R'000s) 300  399 3 (0) 5 (0) 14 (0) 2 (0) 3 (0) 27 0 0 0
400  499 0 (2) 8 (1) 8 (0) 20 (1) 5 (2) 41 1 41 41
500  599 0 (1) 2 (2) 2 (0) 13 (2) 28 (4) 55 2 110 220
f (x ) 15 26 37 41 36 155  102 344 
dx 2 1 0 1 2
fdx 30 26 0 41 72 57 
2
fd x 60 26 0 41 144 271 
 fdxdy   fdx  fdy 

   
n  n n 
r =
 x y
2
271  57 
x =  
155  155 
= 1,27 
2
344  102 
y =  
155  155 
= 1,34 
 fdxdy = 12  4 + 3  2 + 2  2 + 8  1 + 4  1 +8  1 + 20  1 + 5 
2 + 2  2 + 13  2 + 28  4
= 210
r =
210
155
 57
155
 102
155

1,27  1,34
1,1078
=
1,7018
= 0,651
(c) r2 = 0,42 
Only 42% of change can be explained.
____________________________________________________________________________
Question 1
The following table reflects the quarterly production figures in millions

of tons over 5 years (1986  1990) of a coal mining company:
Quarters 1986 1987 1988 1989 1990

1 2,4 3,1 3,5 3,4 2,7
2 2,5 3,0 3,3 3,2 2,5
3 3,7 4,1 4,2 3,9 3,2
4 4,2 4,4 4,4 3,9 3,1
Plot the quarterly production statistics on a graph and insert the

4-quarterly moving average trend.
Question 2
Fit a trend to the data in question 1 and compute a seasonal index

using the ratio to trend method. Use the estimated trend and
seasonal components to predict coal production in the 3rd quarter
of 1991.
Question 3
Smooth exponentially the following time series and use the

smoothed series to forecast profits for August. Use a smoothing
constant of 0,1 and an initial trend value for January of R52 000.
The profits for Tresco Retailers in 1991 were: January, R54 000;
February R60 000; March R65 000; April R62 000; May R75 000;
June R65 000; July R80 000.
Question 4
Write brief notes on time series analysis, concentrating on the

components of a typical time series. Mention what you consider to
be the best method of estimating each component, and explain why
you think it is the best.
Question 5
(a) Briefly describe index numbers and their use in business.
(b) Compute from the data below:
i. A Laspeyres price index for the year 1988 with 1979 as

base; and
ii. A Paasche index number for the year 1988 with 1979–
1980 as base.
____________________________________________________________________________
Prices (per kg) Quantities produced (millions kgs)
Produce 1979 1980 1988 1979 1980 1988
Milk 3,95 3,89 4,13 9 675 9 717 10 436
Cheese 61,5 62,2 59,7 117,7 115.5 115,5
Butter 34,8 35,4 38,9 77,93 74,39 82,79
Question 6
Discuss the construction of index numbers using the four major

factors (choice of items, base period, form of average, weighting
system) as sub-headings.
Do you think there are other major factors? Do you think each of
the factors listed is important? Why?
Question 7
The volume and values of mining done by three companies in 1960

and in 1990 are presented below:
1960 1990
Volume Value Volume Value
Glimmers Gold Mine 144 456 R 512 478 780 758 R1 025 125
Sparkles Diamonds 14 568 R1 254 789 78 758 R8 565 555
Cuteys Copper Mine 100 000 R 200 000 200 000 R 500 000
Compute:
(a) a volume index for 1990, using 1960 as the base date; and
(b) a price index for 1960 using 1990 as the base date.
(Hint: the price for the produce of each mine can be found by dividing
the value by the volume.)
____________________________________________________________________________
Question 1
4-quarterly moving average

4QM CENTERE
A D MA
1986 1 2,4
2 2,5 3,2
3 3,7 3,4 --------------- 3.3
4 4,2 3,5 --------------- 3.4
1987 1 3,1 3,6 --------------- 3.6
2 3,0 3,7 --------------- 3.6
3 4,1 3,8 --------------- 3.7
4 4,4 3,8 --------------- 3.8
1988 1 3,5 3,9 --------------- 3.8
2 3,3 3,9 --------------- 3.9
3 4,2 3,8 --------------- 3.8
4 4,4 3,8 --------------- 3.8
1989 1 3,4 3,7 --------------- 3.8
2 3,2 3,6 --------------- 3.7
3 3,9 3,4 --------------- 3.5
4 3,9 3,3 --------------- 3.3
1990 1 2,7 3,1 --------------- 3.2
2 2,5 2,9 --------------- 3.0
3 3,2
4 3,1
(titles, legend, production curve, CMA)
____________________________________________________________________________
Question 2
n = 20 x = 10,5 y = 3,435
2
x y x xy
1 2,4 1 2,40
2 2,5 4 5,00
3 3,7 9 11,10
4 4,2 16 16,80
5 3,1 25 15,50
6 3,0 36 18,00
7 4,1 49 28,70
8 4,4 64 35,20
9 3,5 81 31,50
10 3,3 100 33,00
11 4,2 121 46,20
12 4,4 144 52,80
13 3,4 169 44,20
14 3,2 196 44,80
15 3,9 225 58,50
16 3,9 256 62,40
17 2,7 289 45,90
18 2,5 324 45,00
19 3,2 361 60,80
20 3,1 400 62,00
210 68,7 2 870 719,80
y = aˆ  ̂x
ˆ   xy  nxy
 x  nx
2 2
719,80  20  10,5  3,435

=
2 870  20  10,52
1,55
=
665
= 0,002
ˆ  y  ˆx
= 3,435  10,5  0,002
= 3,456
Fit YT = 3,456  0,002X
Period YT % Period YT %
1 3,454 69,5 11 3,434 122,3
2 3,452 72,4 12 3,432 128,2
3 3,450 107,2 13 3,430 99,1 Ratio-to-trend
4 3,448 121,8 14 3,428 93,3 Given prod
5 3,446 89,9 15 3,426 113,8 %=  100
YT
6 3,444 87,1 16 3,424 113,9
7 3,442 119,1 17 3,422 78,9
8 3,440 127,9 18 3,420 73,1
9 3,438 101,8 19 3,418 93,6
10 3,436 96,0 20 3,416 90,1
____________________________________________________________________________
For correct table calculations
Seasonal index
I II III IV
1986 69,5 72,4 107,2 121,8
1987 89,9 87,1 119,1 127,9
1988 101,8 96,0 122,3 128,2
1989 99,1 93,3 113,8 113,9
1990 78,9 73,1 93,6 90,1
87,9 84,4 111,2 116,4
Estimate: 3rd quarter, 1991 = period 23
 YT = 3,456  0,002  23
= 3,41
YT  SIQIII = 3,41  111,2%

= 3,79 million tons
Question 3
YF = 0,1  6 000 + 0,9  52 000 = 52 800

YM = 0,1  65 000 + 0,9  52 800 = 54 020
YA = 0,1  62 000 + 0,9  54 020 = 54 818
YM = 0,1  75 000 + 0,9  54 818 = 56 836,2
YJun = 0,1  65 000 + 0,9  56 836,2 = 57 652,6
YJul = 0,1  80 000 + 0,9  57 652,6 = 59 887,3
Forecast for August = 59 88, 3
Question 4
Students should mention the following:
 The long-term or secular movements: overall trend over a long

period of time, for example, least squares.
 Cyclical movement: long-term swings of data around the
overall long-term trend, for example, moving averages.
 Seasonal movement: movements which occur within a year,
with a general pattern each year, for example, seasonal index.
 Irregular movements: random movements are those deviations that
we observe away from our predicted values.
____________________________________________________________________________
Question 5
(a) An index is a series of numbers indicating the relative levels of

some economic, financial, geographic or other variable
through time.
Index numbers are used in two broad categories:
 measuring the changes in some variable that is difficult

or impossible to measure directly; or
 comparing the changes in levels between two variables
through time.
(b) i. I=
p n qo
p o qo
pnqo poqo pnqn poqn
Milk 39 957,75 38 216,25 43 100,68 41 222,2

Cheese 7 026,69 7 238,55 6 895,35 7 103,25
Butter 3 031,48 2 711,96 3 220,53 2 881,09
50 015,92 48 166,76 53 216,56 51 206,54
50 015,92
I=  100
48 166,76
= 103, 83
ii. In =
 pn qn
 100
 poqn
53 216,56
=  100
51 206,54
= 103, 93
Question 6
In their discussion of the construction of index numbers students should

mention the following:
 Choice of items: The relevant items for a specific event must be

chosen. Because the same items can be bought at different prices
you must also decide which price to use for a specific event.
 Base period: It must not be too far in the past because
circumstances may have changed and the comparisons will be
invalid.
 Form of average: There are different forms of averages. The simple
arithmetic is easy to calculate, but the weighted average uses
relative importance measuring.
 Weighting system: The relative importance of each item is taken
into account.
(Students must say whether they consider each of these factors to

be important, and list other factors they think are important.)
____________________________________________________________________________
Question 7
(a) q n po 1960 = qo;po =

value
q o po
volume
value
1990 = qn;pn =
volume
q n po
=
2 771 690,9  6 783 426,5  400 000
q o po 512 478  1 254 789  200 000
9 955 117,4
=  100
1 967 267
= 506, 04
(b) pq n n
1990 = qo;qo
1960 = qn;pn
pq o n
1 967 267
=  100
189 237,36  1 584 415,7  250 000
= 97, 21
____________________________________________________________________________
ASSIGNMENT 1
_____________________________________________________________________________
Subject: Statistics Assignment Code: I10064664-A Edition: 1
_____________________________________________________________________________
Recommended time: 3 hours Total Marks: 90
_____________________________________________________________________________
INSTRUCTIONS
1. Please fill in a blank Assignment Cover sheet, which you should have received with your
study material. If you have only one Assignment Cover sheet left and more assignments to
submit, please photocopy the Assignment Cover sheet. Alternatively, you can download
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 your student number;

 your name and surname;
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 the total number of pages of your assignment (excluding the cover sheet).
3. You should send this assignment to the College for marking only if it is shown in your
Study Programme under 'Assignments for Submission'.
4. Answer the questions in your own words. Marks will be deducted if you copy directly from
your study material.
5. Please post your assignment answers to us.

Post:
 Post your assignment answers to INTEC College, PO Box 19, Cape Town, 8001,
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sufficient postage – otherwise your answers will be returned unmarked.
 Draw a margin on the right-hand side of each page for your tutor to award marks
and write comments. Also, please leave two lines open after each question for
further comments.
 You can answer the questions in any order, but make sure that you staple them
together in the correct order. Handing in neat work will be to your advantage.
____________________________________________________________________________
Additional instructions
 Please indicate on your assignments which edition of the study guide you are using. Certain
information and page references differ from edition to edition.
____________________________________________________________________________
Question 1
(a) Briefly discuss the binomial probability distribution. (4)
(b) A coin is flipped 12 times: what is the probability of getting:
i. no heads; and (2)
ii. no more than 3 heads? (4) [10]
Question 2
Over the past 10 years two golfers have had an ongoing battle as to
who the better golfer is. Curtley Weird has won 120 of their 200
matches, while Dave Chilly has won 70 with 10 of them ending in
ties. Because Dave is going overseas they decide to play a
tournament of five matches to establish once and for all who the
better player is. Find the probabilities that:
(a) Dave wins at least three of the matches; (5)
(b) Curtley wins no more than two games; and (5)
(c) all of the games end in a tie. (3) [13]
Question 3
(a) Discuss probability, independence and mutual exclusivity,

giving examples to illustrate your answer. (6)
(b) i. How many ways are there of choosing a committee of

three people from a club of ten? (2)
ii. How many ways are there of selecting from those three
people a president, secretary and treasurer? (2)
iii. Illustrate your answer to the second part of the

question with a tree diagram. (2) [12]
Question 4
An ice-cream vendor on the beachfront knows from long experience

that the average rate of ice-cream sales is 12 per hour. If, with two
hours to go at work, she finds herself with only five ice-creams in
stock, what are the probabilities that
(a) she runs out before the end of the day; (4)
(b) she sells exactly what she has in stock by the end of the day
without any excess demand after she sells the last one; and (3)
(c) she doesn't sell any? (3) [10]
Question 5
A company applying for medical aid cover counts that 70 of its 140
male employees smoke. Of the 100 female employees, 20 smoke.
What is the probability that an employee chosen at random:
____________________________________________________________________________
(a) is female and smokes; (2)
(b) does not smoke; and (2)
(c) is male or smokes? (2) [6]
Question 6
In a true or false assignment of six questions you are obliged to get

at least four correct to pass. If you guess the answers to the
questions, what are the probabilities that:
(a) you pass; (4)
(b) you get at least 50% of the answers correct; and (3)
(c) you get no more than two correct? (3) [10]
Question 7
A telephonist claims that he gets 10 calls every five minutes. To

demonstrate this to his boss he makes a tape lasting five minutes.
What are the probabilities that he gets:
(a) no calls in the five minutes; (2)
(b) less than three calls; and (5)
(c) exactly 10 calls? (2) [9]
Question 8
Assume that matric marks are standardised to have a mean of 52%

and a standard deviation of 16% (and assume that they have a
normal distribution). In a class of 100 students estimate how many
of them:
(a) pass (in other words get more than 33,3%); (4)
(b) get A's (more than 80%); and (4)
(c) get B's (between 70% and 80%). (6) [14]
Question 9
As manager of a company you know that the distribution of
completion times for an assembly operation is a normal distribution
with a mean of 120 seconds and a standard deviation of 20
seconds. If you have to award bonuses to the top 10% of your
workers what time would you use as a cut-off time? [6]
TOTAL MARKS: [90]
____________________________________________________________________________
ASSIGNMENT 2
_______________________________________________________________________
Subject: Statistics Assignment Code: I10064664-B Edition: 1
_______________________________________________________________________
Recommended time: 3 hours Total Marks: 60
_______________________________________________________________________
INSTRUCTIONS

 postal code;

Post:
further comments.
____________________________________________________________________________
____________________________________________________________________________
Section A (Compulsory)
Question 1
The following table shows the IQs of school children at a certain

primary school:
Class Mark 70 74 78 82 86 90 94 98 102 106 110 114 118 122 126

x
Frequency f 4 9 16 28 45 66 85 72 54 38 27 18 11 5 2
Find:
1.1 The mean. (2)
1.2 The standard deviation. (5)
1.3 The mean monthly salary paid to all employees in a particular

company was R1 500. The average monthly salaries paid to
male and female employees were R1 560 and R1 260
repectively. Determine the percentage of males and females
employed by the company. (6)
1.4 Give three reasons why the standard deviation is generally

regarded as a better measure of dispersion than the range. (3)
1.5 Write short notes on 'weighting' and ranking. (4) [20]
TOTAL FOR SECTION A: [20]
Section B: (Choose four questions out of seven)
Question 2
2.1 Construct a diagram to show graphically the relationship

between the yield of corn and rainfall from the following data:
Year Yield per hectare Seasonal Rainfall

in 100 kg bags (Y) in Millimetres (X)
63 24 50
64 19 80
65 36 120
66 32 115
67 26 75
68 34 70
69 26 115
70 26 77,5
71 29 60
72 38 175
73 40 177,5
74 30 115
(6)
2.2 Compare and interpret (with the aid of rough diagrams) the
skewness in the two distributions given in section 1 above.
(Assume: standard deviation of X = 5,95 and Y = 40.) (4) [10]

____________________________________________________________________________
Question 3
Using the data and values given in question 2, calculate:
3.1 the coefficient of correlation between yield of corn and rainfall;

and (7)
3.2 interpret the result. (3) [10]
Question 4
4.1 Certain tablets are packed 12 per box. If 5% of the tablets

manufactured are chipped, what is the probability that a
randomly selected box will:
4.1.1 be free of chipped tablets; and (2)
4.1.2 have not more than one chipped tablet? (2)
4.2 4.2.1 Five questions are included in a true or false

assignment requiring four correct answers to pass. If
you guess each answer, what is the probability that you
pass? (2)
4.2.2 If the true or false assignment is replaced by a multiple

choice assignment containing four alternatives, what is
the probability that you pass? (2)
4.3 If printers experience an error rate of 0,075 errors per page,

what is the probability of finding 12 errors in a 200-page
book? (2) [10]
Question 5
The sales of a factory, manufacturing bicyles, over the last 24

months were as follows:
Month Units sold Month Units sold

1 1 140 13 1 440
2 1 180 14 1 530
3 1 130 15 1 560
4 1 080 16 1 350
5 1 110 17 1 350
6 1 200 18 1 420
7 1 280 19 1 530
8 1 340 20 1 530
9 1 340 21 1 430
10 1 240 22 1 430
11 1 140 23 1 490
12 1 230 24 1 570
____________________________________________________________________________
It is obvious that the monthly sales are increasing, but it is also
obvious to the production manager that he is getting close to his
capacity. In fact, should demand exceed 1 600 units a month, the
factory would have to be expanded to meet the requirements.
Investigate the possibility, by conventional forecasting methods (in

other words, the moving averages) that the figure of 1 600 units will
be exceeded in any of the next six months. [10]
Question 6
Assume: Arithmetic mean  R111,10

Mode  R105,28
Median  R107,91
Standard deviation  R 18,36
Quartiles  R 98,54 and R122,64
Calculate:
6.1 Pearson's co-efficient of skewness. (2)
6.2 Quartile deviation. (2)
6.3 Quartile co-efficient of skewness. (3)
6.4 What is the main advantage of the semi-interquartile range? (1)
6.5 How can the disadvantages of the range be largely overcome? (2) [10]
Question 7
The following table shows a frequency distribution of the weekly

wages in rand of employees in the XYZ Company:
Wages (R) Number of employees

50  59,99 8
60  69,99 10
70  79,99 16
80  89,99 14
90  99,99 10
100  109,99 5
2
110  119,99
From the frequency distributions construct:
7.1 cumulative frequency distributions; (2)
7.2 percentage cumulative distributions; and (2)
7.3 on the same sheet of graph paper, 'less than' and 'more than'
cumulative curves. (3)
____________________________________________________________________________
From the cumulative curves, estimate the number of employees
earning:
7.4 less than R88,00 per week; (1)
7.5 R96,00 or more per week; and (1)
7.6 at least R63,00 but less than R75,00 per week. (1) [10]
Question 8
The following table represents the annual production figures in

tons for 16 consecutive years:
Year Tonnage Year Tonnage Year Tonnage Year Tonnage

1 118 5 132 9 164 13 191
2 124 6 109 10 224 14 178
3 108 7 122 11 251 15 146
4 120 8 115 12 230 16 161
Plot the 5 yearly moving average with the original figure on the
same graph. [10]
TOTAL FOR SECTION B: [40]
TOTAL MARKS: [60]
____________________________________________________________________________
USEFUL FORMULAE
Some formulae used in quantitative techniques and or statistics
It is common to find different formulae for the same type of calculation,

depending on various textbooks; notes or examinations.
We have taken a number of the more common formulae and listed the
alternatives used, with notes where necessary. You need to check the formulae
in your study material with this list!
It is important that you recognise these formulae, as in the examinations you

will be supplied with a list of formulae. You do not need to memorise the
formulae and in the examinations you are not obliged to use the formulae
supplied. This does mean that if you know an alternative formula you may use
it in the examination.
Note: In the examinations you are not given the meaning of any of the
symbols.
Measures of central tendency

X
Mean: X  (for raw data or an array)
n
 fx
Mean: x  (for grouped data)
n
 fx
Mean: x  (here we have the important concept that n   f )
f
Symbols n = total number of items of data
F = frequency (remember that  f  n )
n 1
Median: Position =
2
n 
c   f ()
2
Me = O me   
f me
Ome = Opening value of the median class
f (<) = Cumulative frequency preceding the median class

(this can have a value = 0)
f me = frequency of the median class
c = class length
Note: F is the cumulative frequency preceding the median class.
____________________________________________________________________________
c(f m  f m 1 )
Mo = Omo +
2 f m  f m 1  f m  1
Omo = opening value of the modal class
c = length of the modal class, i.e. maximum value – minimum

value
fm = frequency of modal class
f m–1 = frequency of the class preceding the modal class (note that this
can be zero)
2f m = frequency of the modal class  2
fm + 1 = frequency of the class following the modal class (note that this
can be zero)
 1 
Mode: Mode = L +  c

 1   2 
Measures of dispersion
Q 3  Q1
Quartile deviation: Q.D. 
2
(  x )2
2 x2  n
Variance: s  (for raw data or an array)
n 1
(  f x)2
2  fx 2  n
s  (for ungrouped or grouped data)
n 1
 fx 2
s2   x 2
f
s
Coefficient of variation:  100
x
Probability
P (A and B) = P (A) . P (B / A) (if dependent)

P (A  B) = P (A) . P (B/A)
P (A and B) = P (B) . P (B) (if independent)

P (A  B) = P (B) . P (B) (if independent)
P (A or B) = P (A) + P (B)  P (A and B)

P (A  B) = P (A) + P (B)  P (A  B)
P (A or B) = P (A) + P (B) (if mutually exclusive)

P (A  B) = P (A) + P (B) (if mutually exclusive)
____________________________________________________________________________
Note: the only difference in these formula is using '  ' for 'or' and '  ' for 'and'.
P (A') = 1  P (A)
P (A) = 1  P A  
Permutation
n!
n Pr 
(n  r )!
Combination
n!
n Cr 
r !(n  r )!
n 
Binomial distribution: P (X )    p x (1  p )n x
x 
Binomial distribution: P (X ) n Cr p r q n r where (p + q) = 1
x e  
Poisson distribution: P (X ) 
X!
x 
Normal distribution: z

Confidence intervals
s
Confidence intervals for  : X  zc 
n
p(1  p )
Confidence interval for  : p  zc 
n
s 12 s 22
Confidence interval for 1   2 : (x 1  x 2 )  z c  
n1 n2
p1 (1  p1 ) p 2 (1  p 2 )
Confidence interval for 1   2 : ( p1  p 2 )  z c  
n1 n2
____________________________________________________________________________
Hypothesis testing
Population mean
x 
Large sample: z s
n
x 
Large sample: z
2
n
x 
Small sample: t s
n
x 
Small sample: t
s2
n
p 
Population proportion: z
 (1 )
n
2 Population means
(x 1  x 2 )  (1   2 )
Large sample: z
s 12 s 22

n1 n2
(x 1  x 2 )
Large sample: z
s 12 s 22

n1 n2
(x1  x 2 )  (1   2 )
Small sample: t
s2 s2

n1 n 2
(x 1  x 2 )
Small sample: t
s 2p s 2p

n1 n2
(n1  1)s 12  (n 2  1)s 22

2
Where: s 
n1  n 2  2
(n1  1)s 12  (n 2  1)s 22

2
Where: s p 
n1  n 2  2
____________________________________________________________________________
( p1  p 2 )  ( 1   2 )
2 Population proportions: z 
1 1 
p(1  p )  
n1 n 2 
( p1  p 2 )
2 Population proportions: z 

p(1  p ) n1  n1
1 2 
n1 p1  n 2 p 2
Where: p
n1  n 2
0
( f 0  f e )2
CHI-squared: 2  
fe
(o x  e x )2
CHI-squared:  2  x
ex
Index numbers
pn
Price relative: 100 
po
 pn q o
Laspeyre price index: 100 
 po q o
 pn q n
Paasche price index: 100 
 po q n
Linear regression and correlation
y  a  bx (the general formula for a staight line)
n  xy   x  y
Where: b
n  x 2  ( x )2
y  b  x
a
n
Yt    X t (this is an alternative form of the general
equation for a straight line)
n  x i y i  ( x i )(  y i )
where 
n  x 2 i  ( x i )2
  y  x
____________________________________________________________________________
Correlation
(Also known as Pearson's coefficient of correlation)
n  xy   x  y
r 
n  x 2

 ( x )2 n  y 2  ( y )2 
n
1
n  (x
i 1
i  x )(yi  y )
r 
n n
2 2
1
n  (x i  x )  1
n  (yi  y )
i 1 i 1
Time series
y  a  bt
where:
t  0
y
then: a
n
 yt
and: b
t 2
Using the general formula:
y  a  bx
where: x  0
y
then: a
n
 xy
and: b
x2
____________________________________________________________________________
ASSIGNMENT 3
_______________________________________________________________________
Subject: Statistics Assignment Code: I10064664-C Edition: 1
_______________________________________________________________________
INSTRUCTIONS

 postal code;

Post:
further comments.
____________________________________________________________________________
____________________________________________________________________________
Practical Assessment
Learner Preparation for Assessment Checklist
Learner Name & Surname : ___________________________________________________
Assessor Name & Surname : ___________________________________________________
Date : ___________________________________________________
Tick  yes or X no
Explained, yes or no?  X

The Assessor explained to me how the National ETD Structure works, including:
 The SAQA structure.
 The national qualifications framework (NQF).
 How my assessment is linked to the NQF.
 The national Learner record database (NLRD).
 My career options after this assessment.
The Assessor explained to me the assessment process including:
 The unit standard I was to be assessed against.
 The use of integrated modules within full qualifications.
 The assessment against assessment criteria.
 The sequence of activities.
 The assessment methods for this assessment.
 The feedback process and appeals procedure.
The Assessor informed me of the following:
 Any barriers that could affect the fairness of the assessment.
 Any special assessment requirements with regard to language preference or disabilities
(indicate details below).
 The appeals procedure to follow if I am not satisfied with the way the assessment is done or
the results thereof.
The Assessor gave me:
 A copy of the unit standard/qualification to be assessed against.
 The assessment instruments to be used for the assessment.
 An opportunity to contribute to the process by suggesting other methods of assessment and
pointing out any special needs I may have.
Comments:
____________________________________________________________________________
Agenda for Pre-Assessment meeting with Learner
Date : _________________________________________________________
Time : _________________________________________________________
Venue : _________________________________________________________
Agenda
1. Understanding the Practical Assessment
2. Purpose of the Practical Assessment
3. Competent vs. Not-Yet-Competent
4. Clustered subjects of specific Module
4.1 Specific Outcomes (SO’s)

4.2 Assessment Criteria (AC’s)
4.3 Cross Field Critical Outcomes (CCFO’s)
5. Roles and Responsibilities of parties involves:

5.1 Learner
5.2 Assessor
5.3 Other Parties such as Observers, Translators
5.4 Moderator
5.5 External Moderator / Verifier (From the SABPP ETQA)
6. Assessment Tools
6.1 Knowledge Questionnaire
6.2 Observations / Role – Play
7. Assessment Context
8. Appeals and Disputes
9. Assessment Process
10. Feedback
____________________________________________________________________________
Minutes of Pre-Assessment Meeting with Learner
Assessor Name & Surname : ___________________________________________________
Date : ___________________________________________________
Tick  yes or X no
Details Yes No
The Assessor explained the how the ETD structure works including:
The SAQA structure.
The national qualifications framework (NQF).
How the assessment is linked to the NQF.
The national Learner record database (NLRD).
Career options after this assessment.
The Assessor explained to the assessment process including:
The unit standard/qualification Learner was to be assessed against.
The use of integrated cluster modules with individual subjects.
The assessment against assessment criteria.
The sequence of activities.
The assessment methods for this assessment, e.g. observation, knowledge etc.
The feedback process and appeals procedure.
The purpose of workplace assessment.
The Assessor informed the Learner of the following:
Any barriers that could affect the process of fairness.
Any special assessment requirements with regard to language preference or disabilities.
The appeals procedure to follow if the Learner is not satisfied with the way the assessment is done
or the results thereof.
Who else would be involved in the assessment process?
The Assessor gave the Learner:
A copy of the unit standard/qualification to be used as an assessment comparison.
The assessment instruments to be used for the assessment.
An opportunity to contribute to the process by suggesting other methods of assessment and
pointing out any special needs the Learner may have.
The Assessor asked the Learner:
If the Learner had any special needs that need to be taken into consideration?
Assessor and Learner agreed on:
The assessment plan including dates, times, venues.
Types of supplementary evidences that I could collect.
The confidentiality of documents.
____________________________________________________________________________
Practical Assessment Agreement
Learner Name & Surname
Training Provider Intec College
Assessor Name & Surname
Internal Moderator
External Moderator
Assessment Process: Comments:
Practical Assessment:
At the end of the training, learner is summatively assessed against all outcomes of the module
through practical activities.
Methods of Assessment:
Assessment will be conducted on the following submission of evidence, e.g.:
 Various practical/workplace activities.
Internal Moderation:
After judgement, has been made and agreed to by both parties, Internal Moderation takes
place. The Moderator assesses all aspects of the file to ensure the following:
1. The correct process was followed.
2. The correct judgement was made.
The Moderator has the right to overturn the judgement and ask for the files to be redone. Or
he/she could simply uphold the judgement and ask for additional information to be added, or
for the information to be restructured. Feedback with either one of the above decisions will be
given. The Learner, Training Provider and Assessor then set out to fulfil the Criteria and
thereafter send the files for Re-moderation.
External Moderation:
Once the files have past Internal Moderation, an External Moderator then moderates the files
for the same reason as the Internal Moderator.
Verification:
The Verifier looks at the whole assessment Process to make sure the correct process was
followed.
Assessment Measurement:
Every Assessment judgement will be measured against the VACS principles.
V- Valid : All Assessment tools and Evidence are Aligned to ELO.
A- Authentic : All documents are those of the Learners.
C- Consistent : Evidence is achieved at the said practical during the
Stipulated time of the programme.
S- Sufficient : There must be a substantial amount of evidence to Award competency per
Unit Standard.
Learners Rights:
1. The Learner has the right to a fair assessment.
This means that the Assessor has to:
a) Explain every step of the process to the Learner as well as give the Learner adequate time to
collect evidence. Mutual agreement on times and dates of Assessment must be specified on an
Assessment Plan.
b) Explain the roles and responsibilities of the Learner, Training Provider, Assessor, Moderator
and Verifier.
c) Discuss any special needs that the Learner has e.g. disabilities, language etc. Learner has the
right to proper equipment if he/she is disabled. The Learner also has the right to an
Interpreter, should he/she require one. Please note that if the Learner is required to speak
English in his work environment, then he/she loses the right to an Interpreter.
____________________________________________________________________________
d) Should any unforeseen incidents occur these would be addressed accordingly and would
not affect the assessment decision or pose as a barrier.
e) Give Learner a copy of the specific Unit Standard as well as the criteria against which he will
be assessed.
2. Learner has the right to appeal against the judgement made by the Assessor.
If the judgement seems unfair, the Learner can appeal to a Moderator. Learner must have
valid reasons for doing so.
Note that if the verification upholds the assessment findings, the Learner will be liable for the
costs.
If the verification finds that the Learner has been unfairly treated, the Assessor will pay for the
costs of verification.
The following procedure will be followed:
 The Learner will lodge a complaint to the Training Provider (application following).
 The Training Provider will discuss the matter with the Assessor and Learner and
decide if the Learner needs to be re-assessed.
 The Learner may be re-assessed by a different Assessor if he/she so chooses and the
company finds just cause.
 If, after a second assessment, the learner is still dissatisfied, he/she may fill in the
appeal form (this form is explained to the Learner prior to every assessment
commencing). The form is attached.
 The completed appeal form will be submitted to the manager.
 The manager will make a copy of the completed appeal form and submit the original
to the SABPP.
 The SABPP will appoint a mediator to pass judgement on the appeal.
 The decision will be communicated to the manager and the Learner after the
mediation.
 This decision of the SABPP mediator is final.
3. Learner has the right to a safe environment during assessment.
This means that the environment and activities are aligned with necessary codes of practice,
health and safety procedures and standard operating procedures.
4. Learner has the right to seek clarity on any items discussed.
5. Learner has the right to have a copy of the assessment contract, which must be signed and
kept in PoE.
6. Each assessment application, outcome, results and reviews will be treated as confidential
matter by Learner, Assessor, and Moderators.
No references will be made to any organisation outside the SABPP about the status of an
application during the assessment process.
7. Learner has three opportunities to master the module.
If Learner is still not yet competent on any unit standard, then the Assessor has the right to
deem Learner not suitable for qualification.
8. Learner has the right to apply for re- assessment. When applying for re-assessment the
Learner must pay an admin fee.
9. Should any unforeseen circumstances occur; these will be addressed accordingly.
____________________________________________________________________________
Consent to Be Assessed
I, _____________ ___________________________, hereby state that I have read the above contract and I
understood the contents thereof. I was given the opportunity to clarify any issues relating to the assessment
process and my assessment plan and schedule. I have requested this assessment in accordance with my own
free will and without duress.
Any subsequent re-assessment of the applicable modules is agreed to and is covered by this agreement.
The Learner will be given adequate notice and be prepared for re-assessment.
The assessment and appeals procedure has been explained to the Learner in a pre-assessment meeting. An
appeals form is available if required.
Learner Signature : ___________________________________________________
Date : ___________________________________________________
Guardian (if still a minor)
Name & Surname of Guardian : ___________________________________________________
Guardian Signature : ___________________________________________________
Date : ___________________________________________________
____________________________________________________________________________
Appeals Application
Name of Learner:
Date if Applicable:
Venue of Assessment:
Date of Assessment:
Name of Assessor:
Module against which you are being assessed:

Statistics
What was the purpose of the assessment? Measure Competency through the Practical
Assessment
Explain how you were assessed?
List the reasons why you disagree with the

assessment decisions.
Which one of the following options could

resolve the matter?  Another Assessor
 Different Assessment Instrument
 Different Assessment Method
 Different Venue for Assessment
 Different Time
List any special needs you might have.
Signature of Learner:
Date:
Signature of Moderator:
Date:
____________________________________________________________________________
General Notes to the Learner
 As the learner, your PRACTICAL ASSIGNMENT EVIDENCE must be AUTHENTIC.
 In order to validate your evidence please ensure that you sign each page with the same signature/initials.
 It is of vital importance that you have studied the learning material within the Study Guide before
starting with the Practical Assessments.
 It is important to complete all the PRACTICAL ASSIGNMENTS before submitting it for assessment.
 Please provide neatly and legible evidence.
 Please do your own work. Your assignments will be rejected, should it be considered as work of others,
or plagiarised.
 Please do not copy directly from external sources such as training notes, textbooks, etc. It is not valid
and it is not authentic. If you use extractions of other’s work, please reference it accordingly. Where
work has been plagiarised, you will not have the opportunity to resubmit evidence.
 You will be given written feedback.
 In the event of being found ‘Not Yet Competent’ you will be given a maximum of two chances to
remediate/top up your evidence after assessment. If the Assessor feels there are gaps they will send you
a preliminary feedback report and request additional information. You will only remedial the sections
that you have been found “Not Yet Competent” on the same assessments as originally assessed upon.
 Your POE will not be returned to you and in the event of being found ‘Not Yet competent you will require
a copy of your POE in order to complete your remediation.
 Ask the Assessor for help if you need more clarification.
____________________________________________________________________________
Assessment Plan
Date : _________________________________________________________
Time : _________________________________________________________
Venue : _________________________________________________________
Resource Required : _________________________________________________________
Special Needs : _________________________________________________________
Details Agreed date Agreed date Agreed date Final

initial submission Review/Session Submission
The modules identified have been

confirmed.
The agreed date for submission of

completed PRACTICAL ASSIGNMENTS.
The agreed date for submission of

Evidence of PRACTICAL ASSIGNMENTS.
Learner Signature : ___________________________________________________
Date : ___________________________________________________
Name & Surname of Assessor : ___________________________________________________
Assessor Signature : ___________________________________________________
Date : ___________________________________________________
____________________________________________________________________________
Practical Assessment Activities
Statistics
Please completed the following practical activities – The purpose of these activities is to assess your practical application
of the embedded knowledge of the applicable module within the full qualification. Each activity has been aligned to an
Exit Level Outcome of the Full Qualification, to ensure that as a learner you have the necessary practical competencies to
be deemed competent on the module.
Practical Activity 1: Practical Activity – Calculations

A. View the following and then present the data by means of a data frequency table.
The data obtained by measuring the age of 21 randomly selected students enrolled in freshman courses at
a university could be presented as the data list:
(16)
18 18 19 19 19 18 22 20 18 18 17
19 18 24 18 20 18 21 20 17 19
Or in set notation as: {18,18,19,19,19,18,22,20,18,18,17,19,18,24,18,20,18,21,20,17,19}
B. In a particular kitchen appliance store, the weekly sales of an electric automatic rice cooker for the last
20 weeks are as follows.
0 15 14 14 18
15 17 16 16 18
15 19 12 13 9
19 15 15 16 15 (2)
In retail sales, too large an inventory ties up capital, while too small an inventory costs lost sales and
customer satisfaction. Using the relative frequency histogram for these data, find approximately how many
rice cookers must be in stock at the beginning of each week if the store is not to run out of stock by the
end of a week for more than 15% of the weeks; and the store is not to run out of stock by the end of a
week for more than 5% of the weeks.
C. Find the mean, the median, and the mode for the number of vehicles owned in a survey of 52
households –
0 1 2 3 4 5 6 7 (3)
2 12 15 11 6 3 1 2
Mean
Median
Mode
D. Find the mode of the following data set. -1 0 2 0 (1)
____________________________________________________________________________
E. For the sample data set (4)
Xf4714834918502511
1.Compute the sample mean and the sample standard deviation.

2.Considering the shape of the data set, do you expect the Empirical Rule to apply? Count the number of
measurements within one standard deviation of the mean and compare it to the number predicted by the
Empirical Rule.
3.What does Chebyshev’s Rule say about the number of measurements within one standard deviation of
the mean?
4.Count the number of measurements within two standard deviations of the mean and compare it to the
minimum number guaranteed by Chebyshev’s Theorem to lie in that interval.
F. A population data set of size N = 500 has mean μ = 5.2 and standard deviation σ = 1.1. Find the minimum
number of observations in the data set that must lie:
(2)
1.between 3 and 7.4;
2.between 1.9 and 8.5.
G. A sample of size n = 80 has mean 139 and standard deviation 13, but nothing else is known about it.
1.What can be said about the number of observations that lie in the interval (126,152)? (2)
2.What can be said about the number of observations that lie in the interval (113,165)?
TOTAL = 30
Practical Summative Assessment Activity = Total
Marks
Learner Achievement ____ /30 = %
For the Learner to be competent the learner needs to achieve 65% and above.
____________________________________________________________________________
Practical Activity 2: Practical Activity – Data and Graphs practicals
A. Refer to the line graph
below and answer the following questions
(3)
A.1 What is the largest number on the vertical scale?

A.2 What pulse rate was recorded at 2 minutes?
A.3 A pulse rate of 121 beats per minute was recorded at how many minutes?
A.1 140
A.2 95
A.3 3
B. Refer to the bar graph
below and answer the following questions
(3)
B.1 How many items are being compared in the graph?

B.2 What was the average height in cm for Granny’s Bloomers?
B.3 What was the average height in cm for no fertilizer?
B.1 5
B.2 28.0
B.3 13.1
____________________________________________________________________________
C. Refer to the circle graph below and answer the following questions
(4)
C.1 How many sectors are in this circle graph?

C.2 What percentage of people in Shrub Oak preferred chocolate ice cream?
C.3 What percentage of people in Shrub Oak preferred butter pecan ice cream?
C.4 If a total of 50 people were surveyed, then how many people preferred vanilla ice cream?
C.1 5
C.2 35%
C.3 13%
C.4 13 ( )
D. A focus group voted for a favourite type of toy (according to their market research) in a Toy manufacturing
company. Each member of the group voted once. Here is the vote: doll 4, action figure 4, educational toy 3,
video game 6, electronics 5, building blocks 1.
D.1 Which of the following bar graphs shows all of these facts correctly? (Note that the title of each graph has
been omitted. Therefore, indicate your choice as either A or B or C.)
D.2 Provide the graph with an adequate, appropriate name.
(2)
D.1 C
____________________________________________________________________________
D.2 Ensure the name is logic, short and descriptive
E. An infant's weight was recorded in pounds for each of 7 weeks. Here is the data: Week 1: 7.5 lbs; Week 2:
7.1 lbs; Week 3: 7.4 lbs; Week 4: 7.7 lbs; Week 5: 8.2 lbs; Week 6: 8.6 lbs; Week 7: 9.0 lbs.
(2)
E.1 Which of the following line graphs shows all of these facts correctly? (Note that the title of each graph has
been omitted. Also, the value for each point has not been labelled. Therefore, indicate your choice as either A
or B or C.)
E.2 Provide the graph with an adequate, appropriate name.
E.1 B
E.2 Ensure the name is logic, short and descriptive

F. At an Educational Institute for learning, the following graph was drafted in terms of the behaviour of a
typical teenager in Grade 11 in South Africa –
The amount of time spent on daily activities is given in hours as follows: School 8, Sleep 6; Entertainment 5;
Homework 3; Meals 2.
(2)
F.1 Which of the following circle graphs shows all of these facts correctly. (Note that all titles have been
omitted. Therefore, indicate your choice as either A or B or C.)
F.2 Provide the graph with an adequate, appropriate name.
F.1 C
____________________________________________________________________________
F.2 Ensure the name is logic, short and descriptive
G. What kind of graph would you use to present the speed in Km per hour of the world’s fastest vehicles?
a. Bar Graph
b. Line Graph (1)
c. Circle Graph
d. None of the above
a. Bar Graph
H. What kind of graph would you use to present the annual number of vehicle fatalities within a specific
province for the last 10 years?
a. Bar Graph
(1)
b. Line Graph
c. Circle Graph
b. Line Graph
I. What kind of graph would you use to represent the number of Internet users in 10 different countries?
a. Bar Graph
b. Line Graph (1)
c. Circle Graph
a. Bar Graph
J. What kind of graph would you use to present the percentage of learners in a Training Provider by each
different qualification?
a. Bar Graph
(1)
b. Line Graph
c. Circle Graph
c. Circle Graph
K. refer to the line graph below to answer the following question –
(1)
What is wrong with the line graph above?

a. Labels are missing.
b. Scale is missing or incorrect.
c. There is too much data presented in this graph.
d. None of the above.
b. Scale is missing or incorrect
____________________________________________________________________________
L. Refer to the bar graph below to answer the following question.
(2)
L.1 What is wrong with the bar graph above.

L.2. Provide the graph with an adequate, appropriate name.
L.1 a. Labels are missing
L.2 Ensure the name is logic, short and descriptive

M. A research project was launched in the music industry, to establish music genres that teenager most likely
listen to, they establish the following by a survey that was conducted across South Africa, with 5000
teenagers, between the ages of 14 – 18. View the circle graph below and answer the following question –
(2)
M.1.What is wrong with the circle graph above.

M.2. Provide the graph with an adequate, appropriate name.
M.1. c. There is too much data presented in this graph.
M.2. Ensure the name is logic, short and descriptive
____________________________________________________________________________
TOTAL = 25
Practical Summative Assessment Activity = Total
Marks
Learner Achievement ____ / = %
For the Learner to be competent the learner needs to achieve 65% and above.
Practical Activity 3: Practical Activity – Written Assignment

Assessment Task
You are required / Assignment: You are required to write a factual paper on the usage of statistics within the day-to-
day activities of the business environment, especially within project management. Within your written assignment,
develop a graph and explain the contents as well as purpose of such in relation to the usage within the workplace.
Assessment Environment:
 Neatly presented factual Paper. (The format for the Factual Paper is similar to an essay)
 Neatly typed out with font Calibri, 10” but not exceeding 11”.
 Entire assignment should not exceed more than 2 A4 Pages.
 Should include a graph or statistical presentation with a clear explanation of purpose and usage.
 A bibliography of all sources should be included.
Your assessments should reflect on the following:
Informative Paper -
 Reflection on the application of statistics and usage of such within the workplace.
 Reflection on the application of statistics and usage especially within project management.
 Presenting a statistical graph with a clear explanation and purpose of such.
Evidence required:
 Neatly prepared short factual paper.
Evidence can be printed out and attached to the Practical Assessment Guide.
Should you have any difficulties understanding this assessment activity please feel free to request more information,
instruction and support from your Assessor.
____________________________________________________________________________
Declaration of Authenticity Practical Assessments
I, the undersigned, declare that all material presented for the practical assessments are my own work, or fully
and specifically acknowledge wherever adapted from other sources.
I understand that if any time it is shown that I have significantly misrepresented material presented, any
credits or qualification awarded to me on the basis of that material may be revoked.
Learner Full Name and Surname : ___________________________________
Learner I.D. Number : ___________________________________
Acknowledgement Study Material – INTEC COLLEGE

of others work
_______________________ _________________________
Learner Signature Date
This document needs to be signed and dated.
____________________________________________________________________________
Verification Report – Practical Activities
The distance learning tutor/facilitator/coordinator must complete the following Verification
Distance learning
tutor/facilitator/coordinator
Name & Surname
ID Number
All required
Evidence is
activities
LEARNER’S PERFORMANCE INDICATORS deemed
have been
authentic and COMMENTS
completed
valid
Confirm that the evidence produce is the
learner’s own work in terms of completion of
signing of “Declaration of Authenticity”
Confirm that the learner has displayed an
understanding of the contents of the module
through the submission of the Formative
Assessments and has indicated his/her
readiness to be assessed on the practical
assessments.
Confirm that the learner was comfortable,
professional and provided a clear indication
to be summatively assessed on the practical
components of each module.
Distance learning
tutor/facilitator/coordinator
COMMENTS
Signature
Date
____________________________________________________________________________
Assessment Decision
Assessment Outcome
Module Statistics
Assessor
Assessor Name
Number
Moderator
Moderator Name
Number
Learner Name Learner ID
First Attempt
Competent
Not Yet Moderator Signature and

Assessor Signature and Date Learner Signature and Date
Competent Date
Assessor The Learner (has / has not) submitted all the required evidence (Practical assessments).
Declaration
Feedback:
and Feedback
Learner needs to do:
Re-assessment date set for: ___________________
Learner I, _________________________ declare that I am satisfied that the feedback given to me by the
Declaration Assessor was relevant, sufficient and done in a constructive manner. I accept the assessment
and Feedback
judgment and have no further questions relating to this particular assessment instrument. I also
understand that my results may be released to relevant stakeholders (e.g. my company, mentor, the
moderator)
Second Attempt
Competent

Competent Date
Declaration
Feedback:
and Feedback
____________________________________________________________________________
Re-assessment date set for: ___________________
and Feedback
Moderator)
Third Attempt
Competent

Competent Date
Declaration
Feedback:
and Feedback
Further action required:
and Feedback
Moderator)
____________________________________________________________________________
Learner Feedback
Instructions: Please answer all questions & ensure that comments are made – not just yes /
no. The Ref box at the top right of each page is for office use only.
Learner Name : _________________________________________________________
Assessor Name : _________________________________________________________
QUESTION FEEDBACK
1. Do you feel that you were properly prepared

for the practical assessments?
2. Were the practical assessments instructions

clear and understandable?
3. How was the practical assessment process

explained to you?
4. Were you given clear and constructive

feedback?
5. Did you have any special needs that had to

be considered?
6. List these special needs.
7. Were all your needs accommodated for?
8. Do you believe that the practical assessment

was conducted modules?
9. Were you made aware of the final

assessment decision?
10. Was all documentation signed and were you
given a copy where necessary?
11. Did you benefit from the assessment

process? And was it fair?
12. Are you aware of any discrimination by the

Assessor?
13. Do you have any suggestions for

improvement?
____________________________________________________________________________
Assessor’ and Moderator’s Review of the Assessment
Module Statistics
Assessor name
Moderator name
Date
Venue
Review Dimensions Assessor Moderator

Agree Agree
1. The principles / criteria for good assessment were achieved.
Disagree Disagree
Agree Agree
2. The assessment related to the exit level outcomes of the qualification.
Disagree Disagree
Agree Agree
3. The assessment was practical.
Disagree Disagree
4. The assessment was time efficient and cost effective and did not interfere Agree Agree
with the normal responsibilities of the learner. Disagree Disagree
Agree Agree
5. The assessment instruments were fair, clear and understandable.
Disagree Disagree
6. The assessment judgements were made against the set requirements of the Agree Agree
subjects/module and full qualification. Disagree Disagree
7. Special needs of the learner were identified and the assessment plan was Agree Agree
adjusted (if required). Disagree Disagree
Agree Agree
8. Feedback to the learner was constructive against the evidence required.
Disagree Disagree
9. The learner was made aware of the opportunity to appeal against the Agree Agree
outcome of the assessment. Disagree Disagree
Agree Agree
10. The evidence was recorded in the assessment process.
Disagree Disagree
11. Did you find any problems with the assessment instruments and assessment guide that you have used in this
assessment? Please provide recommendations.
12. Did you find any problems with regards to the performance of the learners from the same organisation in this
assessment?
Signed and
Assessor Moderator
Dated
Date Date
Number Number
____________________________________________________________________________
Declaration of Competency
Attempt
Attempt 1 Attempt 2
Details Assessor 1st Assessor 2nd Assessor 3rd Moderator 3
Competent
Competent
Competent
Competent
Competent
Competent
Surname
Not Yet
Not Yet
Not Yet
Name
ID #
Outcomes of module
Statistics
Subject code Subject Name C NYC C NYC C NYC
I10064665-E1 Statistics
Date
Learner’s signature
Assessor’s signature
Moderator’s signature
Comments:
Practical Assessment Decision:  Competent  Not yet Competent

We hereby declare that the results of this practical assessment were obtained in a manner that was fair,
valid, authentic, current, sufficient and reliable. This assessment may be subject to moderation, which
could influence the final assessment decision. You will be informed accordingly should this be the case.
____________________________________________________________________________

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Using this Guide 1

Study Session One: Exploratory Data Analysis 3

Study Session Two: Probability 8

Study Session Three: Correlation and Regression Analysis 9

Study Session Four: Time Series Analysis and Indices 10

Study Session Five: Sampling, Limitations and Uses of Statistics 11

Study Session Six: Revision 13

1st Edition August 2017

 INTERNATIONAL COLLEGES GROUP (ICG) PTY. LTD. 2017

Prescribed work will be in the form of study units (indicated by a serial

We recommend the use of Wheldon's Business Statistics by G L Thirkettle, as

(a) Statistics. W M Harper.

Thirkettle is particularly useful. You should try to obtain a copy because it

Passing a course in statistics depends heavily on your doing many, many

Study Topics Prescribed Submit these

One  Exploratory data analysis I10064665

Two  Probability I10064667

Three  Correlation and regression I10064669

Four  Time series analysis and I10064671

Five  Sampling and limitations I10064673

Six  Revision of all work Assignment 1

Reading for this study session

 I10064665 (Graphs and Frequency Tables)

Statistics is the science of decision-making in the face of uncertainty. In all

When you attend presentations at work, read the newspaper or a magazine,

Measures of location (also known as measures of central tendency) give a

The important thing to notice in the example is that it is 'unfair' to just

100 km/h  100

This equation can be simplified down to:

In general, the harmonic mean of n numbers, x1, x2, ..., xn is:

Gantt progress chart

Week Quota (scheduled number

(a) Gantt Chart at end of week 1:

(b) Same Gantt Chart at end of week 2:

Coefficient of quartile deviation

We prefer another definition of the coefficient of quartile deviation to that

Use the second definition in all exams and assignments.

In drawing up charts and graphs it is important to remember what is being

 The monthly sales give an indication of the seasonal variations in sales.

Monthly sales Moving annual total (MAT)

November 2 000 20 000

MAT(November) = December (last year) + January (this year) + November (this

MAT(December) = 9am (this year) + ... + December (this year)

The difference between MAT(December) and MAT(November) is the same as the

MAT(December) – MAT(November) = December (this year) – December (last

 22 000 – 20 000 = 3 000 – December (last year)

which is what is required.

Reading for this study session

While Study Session One concentrated on displaying and summarising sets of

The diagrams on pages 27 and 28 of I10064667 are sometimes known as tree

We also look at some standard probability distributions. Quite a wide class of

In statistics, success comes only through doing many, many examples. On

Reading for this study session

Reading for this study session

 I10064671 (Time Series)

A particular form of time series is an index. An index indicates the relative

Reading for this study session

Statistics relies heavily on numerical information. The accuracy and

The reporting of figures in frequency tables, graphs, summaries, and so on is

Statistical regularity states that samples taken at random from a population

The three pieces of information we are given are:

1. Revenue (10% VAT) = Spending (10% VAT)  10%