NAME: . .............. .............. ..................... ............ ID NUMBER: ........................ ..

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(All rights reserved)
UNIVERS~TY
OF GHANA
BSc. (Admin): FIRST SEMESTER EXAMINATIONS: 2021/2022
UGBS 301: QUANTITATIVE METHODS (3 CREDITS)
DISTANCE EDUCATION
INSTRUCTIONS
Answer ALL Questions in both Sections A and B. Show all workings clearly
(where required) in the spaces provided beneath each question for Section A
and Section B. These instnlctions must be strictly followed. Statistical Tables
and Formulae Are Provided.
TIME ALLOWED: 2.5 HOURS

SECTION A (15 Marks)

ANSWER ALL QUESTIONS

The quality engineer of a rice filling plant does not want the variance of the weight of 750-graln rice
bag to exceed 100gm2 • After weighing seven bags, the following weights with nominal weights of
750gram were observed: 775,780,781,795,803,810,823. Does the sample offer sufficient evidence
that the true variance of weights exceeds 100gm 2 with 95% confidence? (Use this information to
answer questions 1 and 2).

1. What is the Null and Alternate hypothesis for the above situation?

b. Ho: c? =750 grn2; Ha: c? ::::750 gm 2

d. Ho: c? :s 750 gln 2; Ha: if >750gm2
2. Compute the test statistic to be used to conclude whether or not to reject the null hypothesis.

a. 12.592 b. 18.934 c. 16.350 d. 1.635e. None of the above

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3. A wildlife scientist studied two different prides of lions to see if there were any considerable
differences in the efficiency of their hunting expeditions. The total failed attempts of over fifteen
months for the first pride averaged 82 with a variance of 5.76, whereas the second pride averaged
84 failed attelnpts with a variance of 2.89 over twelve months: Determine the test statistic value
that can tell if significant differences exist in their hunting efficiency at a 95% confidence level.

a. 2.121 b.4.717 c. - 1.095 d. -2.435 e. None of the above

A supplier supplies rice bags to three shops, A, B, and C, in 5KG, 25KG and 50KG bags costing
ghclO.60, ghc17.20 and ghc22.50, respectively. Use the table below to answer questions 4 and 5.

5KG 25KG 50KG

Shop A 50 100 30
ShopB 60 150 40
Shop C 80 200 70
4. Write down two matrices, Z and P, such that the elements of the matrix product ZP give the
total cost price of rice bags delivered to each shop. Find the product of ZP.

a. (!~i~) 2145)
b. 7415
( 5532
c.
3325)
6784
( 4711
2874)
d. ( 5423 e. None of the above
5863 5367
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5. In a month the shops received 15, 10, and 5 such deliveries respectively. Using 'the matrix
multiplication technique, determine the total number of 5KO, 25KO and 50KO bags
delivered that month. Hence find the total number of bags delivered in that lTIonth.

a. (6950) b. (9115) c. (6000) d. (7560) e. None of the above

6. The random variable X has a normal distribution with a mean of 20 and a variance of 4, find
P(X > 25)

a. P(z > 1.25) = 0.8944 b. P(z > 1.25) = 0.1056 c. P(z > 2.50) = 0.0062

d. P(z > 2.50) = 0.9934

7. Using information in question 6, Find the value of d such that P(20 <X < d) = 0.4641

a. 22.70 b.27.00 c.23.60 d.26.30 e. None of the above

8. The probability of a bolt being faulty is 0.3. Find the probability that in a random sample of
20 bolts, there are more than 3 faulty bolts.

a. 0.1071 b.0.8929 c.0.1210 d.0.5417 e. None of the above

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9. Bolts are sold in bags of 20 and Musa buys 10 bags. Find the probability that exactly 6 of
these bags contain more than 3 faulty bolts. .

a. 0.0020 b.0.05068 c.0.0052 d.0.40832 e. None of the above

10. A botanist is studying the distribution of Prekese plants in a field. The field is sub-divided into
equal-sized squares. The mean number C?f Prekese plants per square is assumed to be three.
The Prekese plants are normally distributed in the field. Find the probability that there will be
either 5 or 6 Prekese plants in a randomly selected square.

a. 0.9665 b.0.8153 c.0.1511 d.0.l008 e.0.0504

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SECTION B (75 MARKS)

QUESTION 1 (25 Marl{s)
In a study conducted to investigate the performance of public institutions at the various regional capital
as result of the implications of COVTD-19 pandemic, four different public institutions, ECG, Ghana
Water, GRA and GPHA were selected. For each institution, data on revenue generated from January
to December 2020 to ascertain performance over the period. Summary of data of revenue for the fOLLr
institutions are shown in Table] beknv.

Table "I: Revenue (Millions)

ECG Ghana Water GRA GPHA

60 70 70 75
70 80 90 90
80 70 70 92
50 60 90 70
50 90 60 62
60 60 80 90
70 80 70 80
60 70 90 71

The data was analyzed Llsing the data analysis tool in Microsoft excel and part of the outputs
are shown in Tables 2 and 3.

Table 2: Summary Statistics

Groups Count Sum Average Variance
ECG 8 500 A 107.14
Ghana Water 8 580 B 107.14
GRA 8 620 C 135.71
GPHA 8 630 D 123.07

Table 3: Analysis of Variance

Source of
Variation SS d[ MS F P-value
Between Groups E F H J 0.02
Within Groups 3311.50 G I
Total 4620.88

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a. You are required to tind the Inissing values representing letters A to J. (8 Marks)

b. Using 0.05 level of significance, test for the difference in the institutional perfonnance
among t.he three canlpuses.
1. Formulate the Null and the Alternative H.ypothesis. (2 marks)

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11. Detennine the value of the Test statistics. (3 marks)

iii. Detern1ine the critical value of the test statistics. (3 marks)

IV. Conclude if there is a statistical difference exist alTIOng the nlean perfonnance
of the four public institutions. (4 mnrks)

v. Use Fisher's LSD procedure to cOlnpare the performance of the public

instihltions. Use ri = 0.05. What is your conclusion'? (5 marks)

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QUESTION 2 (30 Marks)

Handicraft produces chairs and tables. Using economic forecasts for the next month,
Handicraft marketing manager has judged that during that period, it will be possible to sell as
many chairs or tables as the company can produce. Management must now recommend a
production target for next month. That is, how chairs and tables should be produced if
Handicraft's nlanagement wishes to maximize next month's profit contribution.
Marketing this decision requires a consideration of the following key factors:
1. Handicraft unit contribution margin is 5,000 on each chair that is sold and 4,000 on
each table that is sold.
2. Each product is put through Handicraft's Inachining operations in both department A
and department B. For next month's production, the two departments have 150 and
160 hours available time, respectively. Each chair produced used 10 hours of
. machining in departlnent A ~nd 20 hours of Inachining in department B, whereas each
table produced uses 15 hours of machining in department A and 10 hours machining
in department B.
3. For management to honour an agreement with union, the total hours used in in the next
month's testing of finished products cannot fall more than 10% below an arbitrated
goal of 150 hours. Since 100/0 of 150 is 15, the total hours devoted to testing cannot
fall below 135. The testing is perfonned in the third departInent and has nothing to do
with department A and B. Each chair is given JO hours of testing and each table is
given 10.
4. To maintain current market position, management has decided that it is to build at least
one chair for every three tables produced.
5. A major dealer has ordered a total of at least five chairs and tables (in any combination)
for next month, and so at least that nU1)1ber must be produced.

a. Define the decision variables and formulate a linear programlning model for this
problem. (10 marks)

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The model was solved using solver and part of the results is provided in the Table below. Use
it to answer the questions that follow.
Variable Cell
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$2_.____________. 1!..~j.!. ~_ha!!~_ ..... 4.5 0 5000 3000 2333.33
$C$2 Unit Tables 7 0 4000 3500 1500

Constraints
Final Shadow Constraint Allowable Allowable
Cell N arne Value Price R.H. Side Increase Decrease
_~Q~ 1O_ . __._.__ . ____ ..I~~!..!I.?:K_............. ____ ._____. .____._...__~O 5__. ____. ___.Q._. _..__. ._.________I~.~ ____.__._.__.____. __2.9___._. ._._._. __Lg±~Q_.__
11 Market Position -1 0 1E+ 300 16.5
_~.J2.tt~ _ ... ._ . _Q_~q~t .._. . . . . _. ._._... 11.5 0 ._. __ .......____.___ ._~ _ . _ . .__ ._.... _... ___ . . . _§:. ?._. . . _. . . _____.__ ._J..§.±~~L. . _._
.JD$ 8_________.____Q~2a!!.!!!.~nt~._._____.___!1L___l ?0 __._._-.l~Q.__.__.__...2Q_______.____ 4 ?"J~._. . . .
$D$9 Department B 160 175 160 73.33 40

b. What is the optimal solution to this problem? (3 marks)

c. What is the corresponding value of the objective function? (3 marks)

d. Why does reduced cost column contain zero? (3 marks)

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e. IfHandicraft's unit contribution margin on each table sold was 3,000 instead of 4,O,qO,
how would that affect the optimal solution? (3 marks)

f. If management could obtain additional resources, which one would be most of val4e
to them and why? (3 marks)

g. Which constraints are binding and why? (3 marks)

h. Compute the slack and surplus resources. (2 marks)

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NAME: ............................................................. . IDNUMBER: ......................... .

QUESTION 3 (15 Marks)

In recent years, the increase in demand for online entertainment has resulted in options for
consumers to subscribe to different platforms as a service (PaaS). Accordingly, consumers'
preference for Netflix and Apple TV sUbscriptions has surpassed cable television in Ghana. A
recent data sampled from consumers is to determine whether there is a difference in the
entertainment content provided by either Netflix or Apple TV. Table 2 below shows the level
of rating from consumers based on the entertainment content viewership.

Table 2: Rating of EntertaInment Contents

Apple TV Content (Xl) Netflix Content (X2)
25 22
10 8
29 25
19 22
13 12
28 26
23 22
21 19
23 21
15 23
21 14
23 14
E(Xi- X l)2 E(Xi- X 2)2
Summary statistics Sl = n-l
5.7656 S2 = n-l
5.656

Given the Table above and the sumluary statistics, determine the following:
a. Provide the appropriate test statistic and the reasons for its application. (2 Marks)

b. Develop the appropriate hypothesis and indicate the type of tail test. (2 marks)

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c. Determine the critical value of tqe test statistic. (1 mark)

d. Compute the test statistics. (7 marks)

1
I
e. Does the data sample support a difference between entertainlnent viewership fOl~
Netflix and Apple TV? (2 marks)

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QUESTION 4 (15 marks)

Assume that the test scores from a college admissions test are normally distributed, with a
mean of 450 and a standard deviation of 100. Compute and draw a normal distribution curve
to answer the following.
a. What percentage of the people taking the test score between 500 and 7007 (4 Marks)

b. Distinguish between Binomial and Poisson Probability distributions. Provide an

example each of their application to real-world phenomena. (4 marks)

c. Assume a binomial probability distribution has p = .60 and n = 200.

What are the mean and standard deviation? (2 marks)

d. Consider a Poisson distribution with f.1 is 3.

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i. Compute P (x 2: 2). (3 marks)

FORMULAE SHEET
L!t x· LCd z·-ii)2
1.d=Ldi 2. x= -E.L.1. 3. Sd = 4. t = d-:?n 5. SST = L(Y - y)2
n n n-l si n

8. SSR = Ley - y)2

13. Z = X-J1.
(J'
14. Z = X~J1. 15. t n - 1 = ~
X-J1.

n n

Ef=l (Yi-y)2 (n1- 1 )S1 2 +(n2- 1 )S22

17. Sy = n-l
18. Sp = n1+ n 2- 2

20. b =
1
LCX-X)(Y-Y)
LCX_X)2
21. b o = Y- b1 X 22.R2 = SSR 23. Z = X 1 -X 2
2 2
SST 51
-
n1
+52
-
n2

25. J.I. = E(x) = np 26. (j2 = npq 27. (j = .Jnpq

28. q =1- P 29. P(x) = AtXe-il 30. fJ- = At 31. t = g1-r2

r
x!
n-2

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TABLE 1 et.m.1ULATI\i'E PROBABILITIES FOR THE STANDARD NOR-1\.1..I\L

DISTRIBUTION

Entrif',s in the table

give the area under the
curve to the left of the
E: value. F o.rexample, for
z = -.&5, the cumulative
probability is .J 977.

z 0

Z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09

-3.0 .0013 .0013 .0013 .0012 .0012 .0011 .0011 .0011 .0010 .0010
-2.9 .0019 .OCf18 .0018 .0017 .0016 .0016 .0015 .0015 .0014 .0014
-2.8 .0026 .0025 .0024 .0023 .0023 ......
OO"n .0021 .0021 .0020 .0019
-2.1 .0035 .0034 .0033 .0032 .0031 .0030 .0029 .0028 .002:7 .0026
-2.6 .0047 .0045 .0044 .004.3 .0041 .0040 .0039 .003& .003'7 .0036
-2.5 .0062 .0060 .0059 .0057 .0055 .0054 .0052 .0051 .0049 .0048
-2.4 .0081 .0080 .0078 .0075 .0073 .0071 .0069 .006& .0066 .0064
-2.3 .0107 .0104 .0102 .0099 .00% .0094 .0091 .0089 .0087 .0084
-2.2 .0139 .0136 .0132 .0129 .0125 .0122 .0119 .0116 .0113 .0110
-2.1 .0179 .0174 .0170 .0166 .0162 . 0158 .0154 .01:50 .0146 .0143
-2.0 .0228 .0222 .0217 .0212 . 0207 .0202 .0197 .0192 .0188 .0183
-1.9 .0287 .0281 .0274 .0268 .0262 .0256 .0250 .0244 .0239 .0233
-1.8 .0359 .0351 .0344 .0336 .0329 .0322 .0314 .0307 .0301 .0294
-1.7 .0446 .0436 .0427 .041& .0409 .0401 .0392 .0384 .0375 .0367
-1.6 .0548 .0537 .0526 .0516 .0505 .0495 .0485 .0475 .0465 .0455
-1.5 .0668 .0655 .0643 .0630 .0618 ..0606 .0594 .0582 .057! .0559
-1.4 .0808 .0793 .0778 .0764 .0749 .0735 .0721 .0708 .0694 .0681
-1.3 .0968 .0951 .0934 .0918 .0901 j)S85 .0869 .0853 .0&38 .0823
-1.2 .1151 .H31 .1112 .1093 .1075 .1056 .1038 .1020 .1003 .0985
-1.1 .IJ57 .B35 .1314 .1.292 .1271 .1251 .1230 .1210 .1190 .1110
-1.0 .1587 .1562 .1539 .1515 .1492 .1469 .1446 .1423 .1401 .1379
-.9 .1841 .1814 .1788 .1762 .1736 .1711 .1685 .1660 .1635 .1611
-.8 .2-119 .2090 .2061 .2033 .2005 .1977 .1949 .1922 .1894 .1867
-.7 .2420 .2389 .2358 .2327 .2296 .2266 .2236 .2206 .2.17'7 21418
-.6 .2743 .2709 .2676 .2643 .261 ! .257S .2546 .2514 .2483 .2451
-~5 .3085 .3050 .3015 .2981 .1:946 .2912 .1877 .2843 .2810 .2776
-.4 .3446 .3409 . 3'~'7'
. ) I.~ .3·336 .3300 ..3"264 .3228 .3192 .3156 ..3121
-.3 .3821 37&3 .3745 .3707 .3669 3632 .3594 .3557 3520 3483
-.2 .4207 .4168 .4129 .409() .4052 .4013 .3974 .393-6 .3&97 3859
-.1 .4602 .4562 .4522 .4483 .4443 .4404 .4364 .4125 .42&6 .4247
-.0 .5000 .4960 .4920 .48&0 ..4840 .4·S01 .4761 .4721 .46&1 .4641

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TABLE 2 t DISTRIBUTION

Area or
probability Entries in the table give t values for an area
or probability in the upper tail of the t
distribution. For example, with 10 degrees
ofi'i'eedom and a .05 are in the upper tail, (os
o =
1.812.

Area in UppcrTuiJ
Degrees
ofFloeedom .20 .10 .05 .025 .01 .005

1.376 3.078 6.314 12.706 31.821 63.656

2 1.061 1.886 2.920 4.303 6.965 9.925
3 .978 1.638 2.353 3.182 4.541 5.841
4 .941 1.533 2.132 2.776 3.747 4.604
5 .920 1.476 2.015 2.571 3.365 4.032
6 .906 1.440 1.943 2.447 3.143 3.707
7 .896 1.415 1.895 2.365 2.998 3.499
8 .. 889 1.397 1.860 2.306 2.896 3.355
9 .883 1.383 1.833 2.262 2.821 3.250
10 .879 1.372 1.812 2.228 2.764 3.169
II .876 1.363 1.796 2.201 2.718 3.106
12 .873 1.356 1.782 2.179 2.681 3.055
13 .870 1.350 1.771 2.160 2.650 3.012
14 .868 1.345 1.761 2.145 2.624 2.977
15 .X66 1.341 1.753 2.131 2.602 2.947
16 .865 1..337 1.746 2.120 2.583 2.921
17 .863 1.333 1.740 2.110 2.567 2.898
18 .862 J.330 1..734 2.101 2.552 2.878
19 .861 ] .328 1.729 2.093 2.539 2.861
20 .860 1.325 1.725 2.086 2.528 2.845
21 .859 ] .323 1.721 2.080 2.518 2.83\
22 .858 1.321 1.717 2.074 2.508 2.819
23 .858 1.319 1.714 2.069 2.500 2.807
24 .857 1.318 1.711 2.064 2.492 2.797
25 .856 J .316 1.708 2.060 2.485 2.787
26 .856 1.315 1.706 2.056 2.479 2.779
27 .855 1.314 1.703 2.052 2.473 2.771
28 .855 1.313 1.70] 2.048 2.467 2.763
29 .854 1.311 1.699 2.045 2.462 2.756
30 .854 ) .310 1.697 2.042 2.457 2.750
31 .853 1.309 1.696 2.040 2.453 2.744
32 .853 1.309 1.694 2.037 2.449 2.738
33 .853 1.308 1.692 2.035 2.445 2.733
34 .852 1.307 1.691 2.032 2.441 2.728

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SUPPLEMENTARY PAGE

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