Question 1
A local Real Estate agent was compiling an overview of the Rental Market in his Suburb, to determine the profile of the length of rental contracts. In order to determine this he took a random sample of 65 completed Rental Agreements and recorded the length (in months) of the final contract. The Data collected is reflected in the following table:
18 15 25 18 19 28 23 20 13 38 29 24 3
26 18 30 32 23 9 20 30 26 17 18 30 28
35 6 14 25 19 28 24 12 30 36 31 12 14
48 18 24 3 36 6 12 18 48 9 12 18 22
30 29 20 18 17 25 36 31 29 24 16 23 3
a. Calculate for the Data Set (including appropriate units of measurement) the
i. Mean
ii. Median
iii. Mode
b. Calculate for the Data Set (including appropriate units of measurement) the
i. Range
ii. Standard Deviation
c. Calculate for the Data Set (including appropriate units of measurement) the
i. 25th Percentile
ii. 75th Percentile
Question 2
A retired couple are trying to decide between two Company Stocks for an Investment of $100,000. They are concerned with ensuring that they have sufficient funds for their retirement and hence want to maximise the potential average returns on their investment. You have been asked to provide a recommendation, given the following information. Be sure to clearly identify the Statistical Model that is applicable in this scenario, including any formulas.
Company A
Company B
Annual Return 2012
-3.00%
2.75%
Annual Return 2013
6.25%
3.75%
Annual Return 2014
3.80%
4.00%
Question 3
a. In no more than 600 words :
i. Explain the role and process of Sampling in Statistical Analysis
ii. In most instances, Business' use a Sample to collect Data for analysis rather than conducting a Census. Why is this the case?
iii. Explain the difference between Sampling Errors and Non-sampling
Errors. Be sure to include examples in your answer.
iv. Which Type of Error in part (iii) is more serious? Why?
b. In no more than 400 words :
i. Explain the Statistical Technique of Significance Testing
ii. Explain when and why Significance Testing would be applied in a Business Context. Be sure include how the results would be used in decision making