MZUMBE UNIVERSITY

SCHOOL OF BUSSINES

(SOB)

PROGRAMME : BAF-BS

STREAM : BAF-BS 1C

LECTURER NAME : Ms. LYDIA

SUBJECT NAME : BUSINESS STATISTICS

SUBJECT CODE : QMS 105

TASK : GROUP ASSIGMENT

GROUP NUMBER : 8

SUBMISSION DATE : 21th - JUNE-2024

PARTICIPANTS

S/N NAME REGISTRATION NO:

1. GLORY SOTHENES 1732018/T.23
2. REBEKA EZEKE1L 1732244/T.23
3. VERMUNDA NORASCO 1732239/T.23
4. LETIA BOIMANDA 1732168/T.23
5. MOREEN TUMAINI 1732095/T.23
6. LAURA GAMA 1732026/T.23
7. JULIETH SARATIEL 1732002/T.23
8. ASHIRAFU MMELA 1739035/T.23
9. SHADRACK AYUBU 1732223/T.23
QUESTION 01.

(a) Ibrahim spins a ‘Spinning Malima’ at a fair. When the wheel stops, the shorter
distance of an arrow measured along the circumference from Ibrahim is denoted by C.
What is the distribution of C?

Since the wheel is symmetric and the arrow can stop at any point along the
circumference with equal probability, is uniformly distributed over the interval, the
distribution of C would be uniform. This is because the arrow is equally likely to land at
any point along the circumference of the wheel. Therefore, the probability of the arrow
landing within any given segment of the circumference is proportional to the length of
that segment.

(b) DATA GIVEN

Probability distribution functions (pdf) of continuous random variables

X = continuous random variables

1
Pdf = f(x) = x, 0 ≤ X ≤ 4
8

Find;

i. The cumulative distribution function F(X) and sketch y = F(X).

SOLUTION
To find the cumulative distribution function (CDF) F(X), we integrate the PDF
f(x):
x
1
Pdf = f(x) =
8
x, ∫ 18 t dt
0

()
2 x
1 t
8 2 0

()
2 x
1 1 t
×
8 2 1 0
 1 2 2
( x −0 )
16
1 2
CDF F(X) = x, 0 ≤ X ≤4
16

A graph of Y= F(x)

2
1
Below is the Table for graph Y= F(x) = X , 0 ≤ X ≤4
16

X 0 1 2 3 4
Y = F(x) 0 1 1 9 1
16 4 16

A GRAPH OF Y = F(x)

Y = f(x) -axis

2
1
1 F(x) = X
16

9
16

1
4

1
16

0 1 2 3 4 X - axis
 1 2
Therefore the cumulative distribution function is CDF F(X) = x, 0
16
≤ X ≤ 4 and its graph above

ii. P(0.3 ≤ X ≤ 1.8)

SOLUTION

1
Given = f(x) = x, P(0.3 ≤ X ≤ 1.8)
8

1.8

∫ 18 x dx
0.3

( )
2 1.8
1 x
8 2 0.3

( )
2 1.8
1 1 x
×
8 2 1 0.3

1
( 1.8 2−0.32 )
16

1
( 3.15 )
16

0.196875

Therefore P(0.3 ≤ X ≤ 1.8) = 0.196875

iii. The Median, M

SOLUTION
 b

Mean of continuous random variables = ∫ x f ( x ) dx

a

1
Given f(x) = x, 0 ≤ X ≤ 4
8

∫ x f ( 18 x ) dx
0

∫ 18 x 2 dx
0

( )
3 4
1 x
8 3 0

8 3( 1 )
3 4
1 1 x
×
0

1 3 3
( 4 −0 )
24

1
( 64 )
24

64
Mean = = 2.666
24

Median

1
Set f(x) =
2

SOLUTION

∫ 12 X dx
0

( )
2 4
1 x
2 2 0
 ( )
2 4
1 1 x
×
2 2 1 0

1 2 2
( 4 −0 )
4

1 16
( 16 ) = =4
4 4

Therefore median = 4, mean = 2.666

iv. Find interquartile range

SOLUTION

From IQR = Q3 - Q1

1
Q1 = SET f(x) =
4

∫ 14 X dx
0

( )
2 4
1 x
4 2 0

4 2( 1 )
2 4
1 1 x
×
0
 1 2 2
( 4 −0 )
8

1 16
( 16 ) = =2
8 8

Q1 = 2

3
Q3 = SET f(x) =
4

SOLUTION

∫ 34 X dx
0

( )
2 4
3 x
4 2 0

4 2( 1 )
2 4
3 1 x
×
0

3 2 2
( 4 −0 )
8

3 48
( 16 ) = =6
8 8

Q3 = 6

Hence IQR = Q3 - Q1

IQR = 6 -2 = 4

Therefore interquartile range = 4

QUESTION (02)
 a) The following are importance of estimation theory with application on
different field;

Estimation theory is crucial in statistics as it allows us to make inferences about

unknown population parameters based on observed data. It provides methods for
constructing estimates of these parameters and quantifying the uncertainty associated
with those estimates. This is essential for making informed decisions in various fields,
including:

 Scientific research: Estimating the effectiveness of a new drug or treatment.

 Engineering: Estimating the reliability of a system or component.
 Business: Estimating the demand for a product or service.
 Finance: Estimating the risk and return of an investment.

b) The reason on why in most cases the level of significance is 1% or 5% and

not 25% or 30% are as follows;

A higher level of significance (25% or 30%) would increase the probability of rejecting
a true null hypothesis, leading to false positives. This means we would be more likely to
conclude that there is a significant effect when there is actually none. Lower levels of
significance (1% or 5%) provide a stronger evidence threshold, reducing the risk of
false positives and ensuring more reliable conclusions.

REFERENCES

S.P. Gupta (2010). Business statistics (16th edition); Educational publisher, New Delhi.

Sharma, J.K., (2012). Business statistics. Pearson Education India.

Bowerman, B.L., (2007). Business statistics in practice. Boston: McGraw-hi/Irwin