Quantitative Methods – I
Dec 2024 Examination
PLEASE NOTE: This assignment is application based, you have to apply what you have learnt in this subject into real life scenario. You will find most of the information through internet search and the remaining from your common sense. None of the answers appear directly in the textbook chapters but are based on the content in the chapter
Q1. Explain the following concepts
– Difference between point estimate and interval estimate.
– Concept of confidence interval for any estimate (Mean / Proportion). (2 Marks)
And solve the following question
A sample of 30 students’ test scores is randomly selected from a large class. The sample has a mean score of 85 points and a standard deviation of 6 points. Calculate the 99% and 95% confidence intervals for the population mean. (10 Marks)
Q2A. The monthly rent paid by a group of 15,000 tenants in a city is found to be normally distributed with a mean of 12,000 and a standard deviation of 1,500. Answer the following questions:
- a) What is the probability that a tenant selected at random pays more than 10,500 in rent?
- b) What is the probability that a tenant selected at random pays more than 14,700 in rent ? (5 Marks)
Q2B. A pharmaceutical company claims that its new drug reduces the average recovery time from the flu to less than 7 days. Historically, the average recovery time for the flu without the drug is 7 days. To test this claim, the company conducted a study with 50 patients who took the new drug. The sample mean recovery time was 6.5 days with a population standard deviation of 2 days. Can we accept the company’s claim at the 5% level of significance? (5 Marks)