UNIVERSTIY OF EDUCATION, WINNEBA
COLLEGE OF TECHNOLOGY EDUCATION –KUMASI
FACULTY OF BUSINESS EDUCATION
MASTER OF BUSINESS ADMINISTRATION
END OF SECOND SEMESTER EXAMINATION, JULY 2020.
COURSE CODE
BFG 523
COURSE TITLE
STATISTICS FOR DECISION MAKING
DURATION
TWO HOURS
LECTURER
YARHANDS DISSOU ARTHUR
INSTRUCTION
ANSWER ALL QUESTIONS IN THE ANSWER BOOKLET
QUESTION ONE
The marketing director of
Ghana DASCO Electronics was interested in studying the intention
of consumers to purchase new large TV set in 2020 and as a follow- up, whether they in fact
actually purchased the television. Suppose that a sample of 1000 household was initially selected
and the respondents were asked whether they planned to purchase a large DASCO TV. Twelve
months later the same respondents were asked whether they actually purchased the television.
The results are summerised in the table below
Planned to Purchase
Yes
No
Total
Yes
200
50
250
No
100
650
750
Total
300
700
i. Draw a tree diagram to represent the information in the table.
ii. Find the probability of selecting a respondent who actually purchased a large television.
Interpret your answer in a simple single sentence.
iii. Compute the marginal probability of planning to purchase a large television.
iv.
Find the probability of panned purchase or actual purchase.
v. Calculate the probability that a respondent actually purchased the large television given
that he or she planned to purchase.
QUESTION TWO
Suppose that a potential investor is considering purchasing shares of stock in one of two
companies, A or B , that are listed on the Ghana stock exchange . If neither company offer
dividends to its stockholders and if both companies are related equally high by various
investment services in terms of potential growth, potential investor might want to consider
volatility of the two stocks to aid in the investment decision. Now suppose that each share of
stock in company A has averaged 50 cedis over the past few months with a standard deviation of
1
10 cedis. In addition, suppose that in this same time period the price per share for company B
stock averaged 12 cedis with a standard deviation of 4 cedis. How can the investor determine
which stock is more variable?
QUESTION THREE
The head of marketing in DYN telecommunication wishes to serve its customers better. In order
to provide the quality of service needed by the customers, the head of marketing research
embarked on statistical investigation to determine how customer satisfaction can be improved.
Customers were randomly selected to rate their level of agreement on how these factors
influence customer perceived satisfaction. The data collected were analyzed and the results
presented in the tables below. Write a report to management based on the results from the data
analyzed with emphasis on:
i.
ii.
iii.
iv.
v.
Correlation between customer satisfaction and the independent variables.
Coefficient of determination of the model.
Adequacy of the model.
Regression equation.
Contribution of individual factors on customer satisfaction.
MODEL SUMMARY
R
R Square
Adjusted R Square
Std. Error of the Estimate
0.531
0.282
0.277
0.993
SOURCE OF VARIATION
Regression
Residual
Total
ANOVA TABLE
Sum of Squares
df
339.474
866.339
1205.812
5
879
884
Mean Square
F
P-value
67.895
0.986
68.887
0.000
Coefficients
Unstandardized
Coefficients
(Constant)
Std.
Error
0.143
1.331
2
Standardized
Coefficients
Beta
t
P-Value
9.323
0.000
Hiding charges(X1)
-0.384
0.031
0.398
12.272
0.000
Level of education(X2)
0.039
0.03
0.041
1.303
0.193
Branding(X3)
0.022
0.018
0.04
1.257
0.209
High tariffs (X4)
Poor network(X5)
0.086
0.116
0.029
0.032
0.101
0.122
2.998
3.579
0.003
0.000
3