KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

ACADEMIC YEAR 2021/2022

DECEMBER EXAMINATION

AAMS1773 QUANTITATIVE STUDIES

TUESDAY, 21 DECEMBER 2021 TIME : 2.00 PM – 5.00 PM

(3 HOURS)

DIPLOMA IN ACCOUNTING

DIPLOMA IN BANKING AND FINANCE

DIPLOMA IN BUSINESS ADMINISTRATION

DIPLOMA IN BUSINESS ECONOMICS

DIPLOMA IN E-MARKETING

DIPLOMA IN FINANCE AND INVESTMENT

DIPLOMA IN HUMAN RESOURCE MANAGEMENT

DIPLOMA IN INTERNATIONAL BUSINESS

DIPLOMA IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

DIPLOMA IN MARKETING

Instructions to Candidates:

Answer ALL questions and all answers must be handwritten clearly on white A4 papers or white A4
foolscap papers. Snapshot all your answers as one PDF file.

● This is a final online assessment. You MUST answer the assessment questions on your own
without any assistance from other persons or resources.
● You must contact the lecturer immediately should there be any disruption to the video
conferencing during the final online assessment.
● It is your responsibility to ensure all pages of the answer script are submitted. You will not be
notified for any missing pages or incorrect submission of answer script.
● You must submit your answers within the following time frame allowed for this online
assessment:
o The deadline for the submission of your answers is half an hour from the end time of this
online assessment.
● Penalty WILL BE IMPOSED on students who submit their answers late as follows:
o The final marks of this online assessment will be reduced by 10 marks for answer scripts
that are submitted within 30 minutes after the deadline for the submission of answers for
this online assessment.
o The final marks of this online assessment will be downgraded to zero (0) mark for any
answer scripts that are submitted after one hour from the end time of this online assessment.
● Extenuating Mitigating Circumstance (EMC) encountered, if any, must be submitted to the
Faculty/Branch/Centre within 48 hours after the date of this online assessment. All EMC
application must be supported with valid reasons and evidence. The UC EMC Guidelines apply.

This question paper consists of 4 questions on 11 printed pages.

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AAMS1773 QUANTITATIVE STUDIES

FOCS Additional Instructions to Candidates:

● Include your FULL NAME, STUDENT ID and PROGRAMME OF STUDY in your
submission of answer.
● Read all the questions carefully and understand what you are being asked to answer.
● Marks are awarded for your own (original) analysis. Therefore, use the time and information to
build well-constructed answers.

STUDENT’S DECLARATION OF ORIGINALITY

By submitting this online assessment, I declare that this submitted work is free from all forms of
plagiarism and for all intents and purposes is my own properly derived work. I understand that I have
to bear the consequences if I fail to do so.

This question paper consists of 4 questions on 11 printed pages.

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AAMS1773 QUANTITATIVE STUDIES

Question 1

a) The following frequency distribution shows the late submission times (minutes) for 60 students
on the last semester's final online assessment.

Late submission time (minutes) Number of students

Less than 1 12
1 and less than 2 20
2 and less than 3 8
3 and less than 4 9
4 and above 11

(i) Draw a histogram to represent the above data. Hence estimate the mode and interpret
the value.
(5 marks)
(ii) Calculate the

(1) median; (3 marks)

(2) standard deviation. (4 marks)

(iii) Discuss the differences of the measures in part (ii) between (1) and (2). (2 marks)

(iv) In a random sample of 10 students, what is the probability that no more than 2 students
submitted later than 3 minutes? (4 marks)

b) Data listed shows the number of complaints for the internet connection issue with a 14-day
records by a telecommunication company.

150, 200, 88, 90, 50, 16, 23, 110, 97, 53, 60, 45, 74, 5

(i) State the variable of interest. (1 mark)

(ii) Which is the most suitable measure of central tendency for the above data? Determine
the value and interpret the result. (3 marks)

(iii) Determine the interquartile range. (3 marks)

[Total: 25 marks]

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AAMS1773 QUANTITATIVE STUDIES

Question 2

a) The prior probabilities for events A1 and A2 are P(A1) = 0.4 and P(A2) = 0.6. It is also known
that P(A1 A2 ) = 0. Suppose P(B|A1 ) = 0.2 and P(B|A2 ) = 0.05.

(i) Calculate the following probabilities:

(1) P(A1  B) (2 marks)

(2) P(B) (3 marks)

(3) P(A2  B) (2 marks)

(ii) Apply Bayes’ Theorem to calculate P(A2 |B). (3 marks)

b) A university found out that 20% of its students withdraw from a program after 2-week of classes.
In this semester, a random sample of 12 students from a specific program is chosen to investigate
the causes.

(i) State the random variable of interest. (1 mark)

(ii) Calculate the probability that

(1) 2 or fewer students will withdraw; (3 marks)

(2) more than 9 students will withdraw. (3 marks)

c) The weekly sales of plant fertilizer follows a normal distribution with a mean of RM2530 and
a standard deviation of RM350.

(i) Find the percentage that the sales are less than RM2550 in a particular week. (4 marks)

(ii) Find the new mean if 1% of the sales are more than RM2535. (4 marks)

[Total: 25 marks]

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Question 3

a) After a two-year online teaching and learning program, 15% out of a random sample of 200
students are satisfied with the online learning atmospheres.

(i) What is the point estimate for the actual proportion of the students who are not satisfied
with the online learning atmospheres? (1 mark)

(ii) Construct a 99% confidence interval for the proportion of the students who are satisfied
with the online learning atmospheres. (5 marks)

(iii) A lecturer claimed that not more than 10% of the students are satisfied with the online
learning atmospheres. Does this sample provide sufficient evidence to support the
claim at 1% level of significance? (7 marks)

b) Let X be a random variable representing a change in the number of customers and Y be the sales
revenue (RM) of a grocery store in the past six months.

X 159 160 210 145 131 98

Y (RM) 5240 5600 6880 4489 3500 2800

It is given that ∑ 𝑥 =903, ∑ 𝑦 = 28509, ∑ 𝑥𝑦 = 4557765, ∑ 𝑥 2 = 142771

(i) Given that product moment correlation coefficient is 0.974872, calculate the
correlation of determination and interpret the result. (2 marks)

(ii) Form the least-squares equation of Y on X. Interpret the regression coefficient b.

(7 marks)

(iii) Predict the sales revenue (RM) for the number of customers of 90. Is this prediction
reliable and accurate? Explain. (3 marks)

[Total: 25 marks]

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AAMS1773 QUANTITATIVE STUDIES

Question 4

a) The average marks obtained by the first-year diploma students in an Advanced Excel short
course for the past three trimester years as shown below:

Year Semester
First Second Third
2018 65 61 78
2019 70 69 75
2020 72 78 79
2021 85 80 -

(i) Compute the moving average trend. (4 marks)

(ii) Calculate the average seasonal variations using additive model. (6 marks)

(iii) Forecast the average mark for the first semester of the year 2022. (3 marks)

b) The following table shows the two different portions of saving from a couple.

Saving (RM) Interest rate per year Duration

3500 2.2% 2 years
2000 2.5% 6 months

(i) If the interest rate for the saving of RM3500 is based on simple interest while the
interest rate for the RM2000 is compounded monthly, calculate the total interest earned.
(3 marks)

(ii) After six months of the saving, an additional RM150 monthly saving is saved to
RM2000 for the next two years, find the total interest earned at the end of the
investment period. (4 marks)

c) A new investor is considering investing in the Real Estate Investment Trust (REIT) with the
following cash flows.

Year REIT investment

Cash Inflow Cash Outflow
0 - RM20000
1 RM15000 RM8000
2 RM12000 RM10000
3 RM8000 RM5000

If the cost of capital is 15% per annum, advise the investor on the course of action. (5 marks)

[Total: 25 marks]

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AAMS1773 QUANTITATIVE STUDIES

FORMULAE Confidence Interval for One Population

𝜎
Median, grouped data 𝑥̅ ∓ 𝑍𝛼
Cm n 2 √𝑛
Median = Lm + ( −  f m −1 )
fm 2 𝑠
𝑥̅ ∓ 𝑍𝛼
2 √𝑛
Mode, grouped data
( f m − fb )
Mode = Lm +  cm 𝑝̂ (1 − 𝑝̂ )
2 f m − ( fb + f a ) 𝑝̂ ∓ 𝑍𝛼 √
2 𝑛

Sample mean, raw data

Test Statistic for One Population
X =
x
n 𝑥̅ − 𝜇0
𝑍= 𝜎
√𝑛
Sample mean, grouped data

X=
fx ̅ − 𝝁𝟎
𝒙
𝒁=
f
𝒔
√𝒏

Population standard deviation, raw data 𝑝̂ − 𝑝0

𝑍=

= 
(x −  ) 2
 x2 −  2 √
𝑝0(1−𝑝0 )
𝑛
or
N N

Sample standard deviation, raw data Product Moment Correlation Coefficient

( x) 2

 (x − x )
2
x 2
−
n n  XY − (  X )(  Y )
s= or r=
n −1 n −1 [ n  X 2 − (  X ) 2 ][ n  Y 2 − (  Y ) 2 ]

Population standard deviation, grouped data Spearman’s Rank Correlation Coefficient

 fx − 
2
2
 fx 
= 6 d 2
f f 
  rs = 1−
n ( n 2 − 1)
Sample standard deviation, grouped data
Least squares regression line: 𝑦̂ = 𝑎 + 𝑏𝑥
( fx) 2

 fx − f
2
n xy −  x y
s=
 b=
 f −1 n x 2 − ( x )
2

Binomial Probability Function a=  y −b x

n n
P ( X = x ) = n C x p x ( 1 − p ) n − x ; x = 0 ,1,  , n

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AAMS1773 QUANTITATIVE STUDIES
Arithmetic Progression: Tn = a + (n − 1) d Sn =
n
 2a + (n − 1) d 
2

a (1 − r n )
Geometric Progression: Tn = a r n −1 Sn =
1− r

Simple interest: Sn = P(1 + in)

Compound interest: Sn = P(1 + i )n

Ordinary annuity Due annuity

Future value: 
A (1 + i ) − 1
n
 
A (1 + i ) (1 + i ) − 1
n

i i
Present value: 
A 1 − (1 + i )
−n
 
A (1 + i ) 1 − (1 + i )
−n

i i

Chi-Square Test of r c ( O ij − E ij ) 2
Independence:  2 = 
i =1 j =1 E ij

This question paper consists of 4 questions on 11 printed pages.

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AAMS1773 QUANTITATIVE STUDIES

This question paper consists of 4 questions on 11 printed pages.

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AAMS1773 QUANTITATIVE STUDIES

Taken from Statistical Tables by J Murdoch and JA Barnes

This question paper consists of 4 questions on 11 printed pages.

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AAMS1773 QUANTITATIVE STUDIES

This question paper consists of 4 questions on 11 printed pages.