One Hour and Thirty Minutes

SID Number / mm / mm / mm / mm / mm / mm / mm / / / mm

ANGLIARUSKINUNIVERSITY

LORDASHCROFTINTERNATIONALBUSINESSSCHOOL

RESIT APRIL 2013

LEVEL 1

ANALYSIS OF BUSINESS

MOD001021

TIME ALLOWED

ONE HOUR AND THIRTY MINUTES

INSTRUCTIONS:

1This is a closed book examination. No form of electronic media e.g. pen drivesare to be taken into the examination.

2All questions are based on the data in the file titled EXAM

3Answer THREE of the following FIVE questions.

4The allocations of marks to questions are indicated in brackets.

5All answers must be written on the examination paper provided by the invigilators.

6Foreign language dictionaries for translation purposes only are permitted into the examination. Additional material must not be incorporated. Other dictionaries are not permitted.

7A list of formulae is given.

8The use of calculators is NOT permitted.

9The deadline for submission of mitigation in relation to this examination is Refer to your Student Handbook for details.

Number of questions set:5

Number of pages:10 (including cover)

Enter the number
of each question
to be marked / First
Examiner
Provisional
Mark

Q1The company profits (£000) are entered on the worksheet entitled PROFITS.

a)Construct a frequency table of the company profits, using a maximum of 10groups, and enter your values in the table below.

Lower class
boundary / Upper class
boundary / Frequency
(f)
0 / 99

(30 marks)

b)Use the frequency table to draw a graph.

(10 marks)

c)What do you notice about the distribution of data from your graph? How would you expect the mean and median values to relate to each other?

…………………………………………………………………………………………………

………………………………………………………………………………………………….

…………………………………………………………………………………………………..

……………………………………………………………………………………………….(15marks)

d)How many companies are in the report?

(5 marks)

e)How many companies made a profit of £599,000 or less?

(5 marks)

f)What percentage of companies made a profit of £200,000 or more?

(10 marks)

g)What is the median value of company profits?

(5 marks)

h)With the global downturn there is a predicted 15% decrease in profit.

i)What would be the new value of profits for the most profitablecompany?

(10 marks)

ii)What would be the new value of profits for the least profitable company?

(10 marks)

There are 86 houses for sale of a similar size in each of two towns, Town A and Town B. The frequency distribution of the asking price(£000) of the houses in each townis shown on the worksheet called HOUSES

a)What is the mean house price in Town A?

(10 marks)

b)What is the median house price in Town A?

(10 marks)

c)What is the standard deviation of house prices in Town A?

(10 marks)

d)What is the mean house price in Town B?

(10 marks)

e)What is the median house price in Town B?

(10 marks)

f)What is the standard deviation of house prices in Town B?

(10 marks)

g)Briefly compare the distribution of house prices in Town A with the distribution of house prices in Town B. Identify and explain any differences between the two distributions.

......

(20 marks)

h)Calculate the Co-efficient of Variation for house prices in each town

Town A

Town B

(10 marks)

i)What do your results in part h) above suggest?

......

(10 marks)

Q3. The data from the worksheet calledBUSgives the total number of visitors to a holiday destination in each of ten weeks and the number of buses entering the central bus station each week. Although visitors can also arrive by train, by plane or by private car, the suggestion is that the total number of visitors to the holiday destination (Y) is linked to the weekly number of buses(X) arriving at the destination.

a)What is the value of?

(10 marks)

b)What is the value of ?

(10 marks)

d)c) Calculate the regression equation

i)i,

ii)∑xi2

iii)∑yi2

iv)∑i, xi2

(15 marks)

d)How many visitors would you expect from the regression equation if the number of buses arriving each week is 20?

(10 marks)

e)Why is the regression equation sometimes called the ‘least squares line’?

......

(10 marks)

f)A new bus station is to be built andup to 80 buses can now arrive each week. If the maximum capacity of 80 buses per week is reached, how many visitors might we predict?

(10 marks)

g) Does the coefficient for the independent variable have the sign you expected? Explain your reasoning.

………………………………………………………………………………………………….

…………………………………………………………………………………………………

…………………………………………………………………………………………………...

…………………………………………………………………………………

(10 marks)

h)Calculate the co-efficient of determination (R2)

(15 marks)

i)How confident can you be when you use the regression equation for forecasting the future number of visitors?

......

(10 marks)

4Answer both parts (i) and (ii) of this question

Part (i)

A firm is trying to decide between two projects. The expected annual profits at year end have been entered on the worksheet entitled NPV. If the discount rate is 3.5% answer the following questions:

a)What are the discount factors for the following years?

(10 marks)

b)Calculate the Net Present Value (NPV).

(10 marks)

c)Calculate the average rate of return.

(10 marks)

d)Calculate the internal rate of return.

(10 marks)

e)On the basis of this analysis, how would you suggest your company should view the respective projects?

......

(10 marks)

Part (ii)

a)What are the components of a time series model?

......

(5 marks)

b)What is the period of a cycle?

......

(5 marks)

c) Passenger movements by a major train company are shown in the worksheet entitled TRAINS (data in 1,000 passengers). Using time series analysis, answer the following question:

Find the centred moving average for the number of passengers for the four quarters of 2013?

Q1 / Q2 / Q3 / Q4

(20 marks)

What component of the time series have you found in your result for part c) above?)

......

(5 marks)

e)What are the values of the unadjusted seasonal variation components (S+I) correct to 2 decimal places?

Q1 / Q2 / Q3 / Q4

(15 marks)

Answer both parts (a) and (b)

(a)A consumer has complained to the Weights and Measures department of a Local Authority, suggesting that the weight of potato snacks is less than the stated 30 grams. A randomly chosen sample of packets of potato snacks was selected by the authorities, with their weights entered on the worksheet entitled SNACKS.

Test the hypothesis at the 5% level of significance that the machine fills bags consistently at the specified weight.

i)State your hypothesis

(10 marks)

(iiiState the critical value 

(10 marks)

iii)What is the value of the test statistic?

(20 marks)

What are your conclusions?

......

(10 marks)

(b) A steel company produces steel rods with an average diameter of 4.5mm and standard deviation of 0.25mm. A random sample of steel rods was taken to ensure that the consistency of the manufacturing process had not changed.

The sample data is contained on the worksheet entitled RODS. Analyse the data in order to answer the following questions:

Is the diameter of steel rods 4.5mm? Test at the 5% level of significance.

State your hypothesis.



(10 marks)

State the critical value

(10 marks)

What is the value of the test statistics?

(20 marks)

What are your conclusions?

......

(10 marks)

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