FACULTY
Economics and Management Sciences
DEPARTMENT
Namibia Business School
SUBJECT
Advanced Business Quantitative Methods
SUBJECT CODE
CBBQ 5999
Degree
MBA Finance & MBA Management Strategy (Main Campus)
Assignment
One
DUE DATE
Marks
10 April 2020
100
Time: 23:00
Assignment I
Lecturers: Dr. R. Kamati & Dr. Opeoluwa Oyedele
This paper consists of four (4) pages including the cover page
Instructions
Show all your works.
This is an individual assignment; provide your student details on the cover page.
No late submission will be accepted.
Provide your final calculations up to 4 decimal places where applicable.
Submit your assignment through moodle.
UNIVERSITY OF NAMIBIA EXAMINATION
1|Page
Question 1
[5 marks]
The credit manager of a Game store claims that the mean balance for the store’s charge account customers is N$410.
An independent auditor from Deloitte selects a random sample of 18 accounts and finds a mean balance of N$511.33
and a standard deviation of N$183.75. If the manager’s claim is not supported by these data, the auditor intends to
examine all charge account balances.
(a) Conduct a hypothesis test for a single mean at the 5% significant level and advise the auditor accordingly.
Show the null and alternative hypothesis and all the steps for this test. [5marks]
Question 2
[10 marks]
Mr Brian a CEO of a large firm in the Namibia wants to know, the relationship between the wages of men and
women employed at the firm. He conducted a survey of the employees and recorded the information in N$ in the
table below.
Difference in the wages of men and women
Sample mean
Sample standard deviation, s
(N$)
(N$)
28.65
2.40
Population 1,
women
Population 2,
men
29.15
Sample size, n
130
1.90
140
(a) Mr Brian instructed you to conduct a hypothesis test at a 10% significance level, is there evidence of a
difference between the wages of men and women? [10marks]
Question 3
[15 marks]
Okakango Eagle Service is a security company which claims that it pays its guards a monthly salary of more than
N$1160. Á prospective competitor wants to enter the security service market; however, the competitor is not sure
how much he should pay his guards to keep them from being poached by Okakango Eagle Service. As part of market
intelligence, the competitor collected the following monthly salaries (in N$) from a random sample of 11 security
guards at Okakango Eagle Service:
1200
1175
1080
1275
1201
1387
1090
1280
1400
1287
1225
You have been hired to advice whether the new competitor must enter the market. Hint: the sample standard
deviation (s) = N$103.81.
(a)
What seems to be the average salary for guards at Okakango Eagle Service?
[3marks]
(b)
Use the 5% level of significance to test the claim that Okakango Eagle Service pays its guards a monthly
salary of more than N$1160. [10marks]
(c)
Based on your findings in (b) suggest a business decision for the new competitor to take. [2marks]
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Question 4
[10 marks]
Etosha Fish factory has an assembly line for canning baby hakes. In this area of the factory, the firm employs three
shifts: morning 07:00–15:00 hours, evening 15:00–23:00 hours, and the night shift 23:00–07:00 hours. The manager
of the factory believes that the production output on the morning shift is greater than that on the night shift. Before
the manager at the assembly line takes any action, he first records the output on 16 days for the morning shift, and
13 days for the night shift. This information is given in table below.
Production output between morning and night shifts
Morning
29
24
28
29
31
27
29
28
26
23
25
28
27
Night
22
23
21
25
31
22
28
30
20
22
23
25
26
27
30
23
Use hypothesis test to answer the following question:
(a) At a 1% significance level, is there evidence that the output of fish canning process on the morning shift is
greater than that on the evening shift? [10marks]
Question 5
[16 marks]
A company recently conducted a study on motivation levels amongst its clerical employees. The HR manager
wished to establish if there was any association between the gender of an employee and his/her level of motivation.
The following crosstabulation was compiled from the survey data:
Gender
Motivation level
High
Moderate
Low
Male
7
9
12
Female
16
13
8
u
(a) Construct a row percentage table. Interpret each gender’s profile. [4marks]
(b) Now conduct a chi-squared hypothesis test to identify statistically whether there is an association between
employees’ gender and motivation level. Use α = 0.10 level of significant. [10marks]
(c) Interpret your findings and make management conclusion. [2marks]
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Question 6
[20 marks]
A study was made to see if there was a significance difference between the commuting time of people working in
central business district in Windhoek from Okahandja and the commuting time of people working in Windhoek
CBD from Rehoboth. The benchmark for commuting time was at least 2 hours per day. A random sample of 302
people was selected from Okahandja and 178 said that they had a daily commute of at least 2 hours. A random
sample of 250 people was selected in Rehoboth and 127 replied that they had a commute of at least 2 hours.
(a) At a 5% significance level, is there evidence to suggest that the proportion of people commuting Okahandja
is different from that of Rehoboth? [10marks]
(b) At a 5% significance level, is there evidence to suggest that the proportion of people commuting Okahandja
is greater than those working in Rehoboth? [10marks]
Question 7
[24 marks]
The marketing manager of a large supermarket chain would like to use shelf space to predict the sales of pet food.
A random sample of 12 equal-sized stores is selected, with the following results.
Store
Shelf
Space
(feet)
Weekly
Sales(N$)
1
2
3
4
5
6
7
8
9
10
5
5
5
10
10
10
15
15
15
20
160
220
140
190
240
260
230
270
280
260
11
20
12
20
290
310
a.
Use the least-squares method to find the regression coefficients 𝑏0 and 𝑏1 [10marks]
b.
Interpret the meaning of coefficients 𝑏0 and 𝑏1 in this problem. [4marks]
c.
Is the correlation between shelf space and weekly sales statistically significant? Test at the 5% significance
level and draw conclusion? [8marks]
d.
Predict the mean weekly sales (in hundreds of dollars) of pet food for stores with 8 feet of shelf space for
pet food. [2marks]
End of the assignment
‘’Victorious warriors win first and then go to war, while defeated warriors
go to war first and then seek to win.’’ —SUN TZU
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