THE ROYAL STATISTICAL SOCIETY ORDINARY CERTIFICATE PAPER II

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HE ROYAL SAISIAL SOIEY 2004 EXAMINAIONS SOLUIONS ORDINARY ERIFIAE PAPER II he Society provides these solutions to assist candidates preparing for the examinations in future years and for the information of any other persons using the examinations. he solutions should NO be seen as "model answers". Rather, they have been written out in considerable detail and are intended as learning aids. Users of the solutions should always be aware that in many cases there are valid alternative methods. Also, in the many cases where discussion is called for, there may be other valid points that could be made. While every care has been taken with the preparation of these solutions, the Society will not be responsible for any errors or omissions. he Society will not enter into any correspondence in respect of these solutions. RSS 2004

Ordinary ertificate, Paper II, 2004. Question 1 A quantitative variable is one measured on a numerical scale, while a qualitative variable is not numerical but categorical, each item being assigned to one of a set of categories. Qualitative variables can be nominal or ordinal. he categories of a nominal variable cannot be put into an order; they may for example be colours of objects (e.g. vehicles), source of origin (e.g. food products from different parts of the world) or ethnic group. Ordinal variables can be arranged in a logical order, such as for example in a 1-to-5 scoring scale for an opinion (e.g. disagree up to strongly agree), sizes of motor cars (small, medium, large), vigour of plants (weak, average, good, very good). Discrete variables are usually counted as integers, for example the number of vehicles passing along a road or the number of insects found on the leaves of a plant. ontinuous variables are precise measured variables, such as lengths, heights, times, which can take any value within a range. Nominal : Ordinal : Discrete : a bar chart with categories in no special order a bar chart in the order given by the categories a bar diagram in numerical order of the variable ontinuous : a histogram with intervals in increasing order of the value of the variable.

Ordinary ertificate, Paper II, 2004. Question 2 (i) Stem and leaf diagrams, using 10 units as stems and 1 as leaves, for the two categories are as follows, after ordering the leaves for each stem. SEROMBA Frequency umulative frequency 1 0 6 6 8 4 4 2 2 3 4 4 5 5 5 6 6 9 13 3 0 0 0 0 0 0 5 5 5 7 8 8 12 25 4 0 0 0 0 0 0 0 0 5 5 5 5 5 5 7 15 40 5 0 0 0 0 2 5 6 46 6 0 0 0 0 4 50 EOUDERAL Frequency umulative frequency 1 5 9 2 2 2 3 5 5 6 6 9 9 9 9 9 11 3 5 5 5 5 5 5 5 5 5 5 5 9 9 9 9 9 9 9 9 9 20 31 4 5 5 5 5 5 5 9 9 9 9 40 5 5 5 5 5 9 9 9 7 47 6 5 5 5 3 50 (ii) here are 50 prices in each list. he median is therefore midway between the 25th and 26th, and so is 39 for each [Seromba: ½(38+40); Etouderal: ½(39+39)]. he upper quartile is the [¾(50+1)]th value in the list, i.e. the 38¼th item; this is 45 for Seromba and 49 for Etouderal. he lower quartile is similarly the 12¾th item, which is 26 for Seromba and 35 for Etouderal. [Note. Alternative definitions of quartiles for discrete data sets are sometimes used. In the present cases, they would make no difference due to the repeated values in the lists.] he maxima and minima are also used in the boxplots. SEROMBA EOUDERAL 10 20 30 40 50 60 Price ( ) (iii) Both have a range of 50, Seromba from 10 to 60 and Etouderal from 15 to 65. Both have a median of 39. Seromba has more at the lower end of the price range. Etouderal has a large number at 35 39. (iv) Almost all Etouderal products have prices ending in 5 or 9, the 9 being no doubt intended to give an impression that they are not all that expensive. Seromba has several ending in zeros, and none with 9s.

Ordinary ertificate, Paper II, 2004. Question 3 (i) Value Minimum possible Maximum possible 2.7 2.65 2.75 3.8 3.75 3.85 3.0 2.95 3.05 4.4 4.35 4.45 otal 13.9 13.7 14.1 (ii) Minimum for mean = 13.7/4 = 3.425. Maximum for mean = 14.1/4 = 3.525. (iii) Minimum possible SD = 0.7182, maximum = 0.8261 (these are given in the question). he coefficient of variation is SD 100 %. Mean Min SD 0.7182 = = 0.2037. Max mean 3.525 Max SD 0.8261 = = 0.2412. Min mean 3.425 Hence the minimum possible coefficient of variation is 20.4% and the maximum is 24.1%.

Ordinary ertificate, Paper II, 2004. Question 4 (i) he proportion with no amenities is 1 0.84 = 0.16. he proportion with 3 is given as 0.16 and the proportion with 2 or more as 0.36. Hence the proportion with 2 is 0.36 0.16 = 0.20. his leaves a proportion of 0.48 with 1 amenity. Summary table: Number of amenities 0 1 2 3 Proportion 0.16 0.48 0.20 0.16 Mean = (0 0.16) + (1 0.48) + (2 0.20) + (3 0.16) = 1.36. (ii) Put x = proportion having just = proportion having just BL. he proportion having just S is then x + 0.06. So, for one amenity, we have 0.48 = x + x + x + 0.06 = 3x + 0.06, giving 3x = 0.42 so that x = 0.14. Now put y = proportion with (+BL) = proportion with (+S). hen the proportion having (S+BL) is y + 0.02. hus for two amenities we have 3y + 0.02 = 0.20, so y = 0.06. he diagram can now be completed. S BL 0.20 0.08 0.14 0.06 0.16 0.06 0.16 0.14

Ordinary ertificate, Paper II, 2004. Question 5 (i) he chart shows actual takings (diamond symbols) and the 7-day moving average calculated in part (iii) (square symbols). 140 120 akings ( 000) 100 80 60 40 20 0 M u W h F Sa Su M u W h F Sa Su M u W h F Sa Su Day (ii) Seasonal variation is a regular short-term variation from the trend. Here there is a 7-day variation, with more sales on Friday and Saturday, dropping on Sunday and Monday, and then increasing again steadily through the week. (iii) A 7-day moving average will be needed. akings ( 000) 7-day total 7-day moving average M 92 u 98 W 104 h 106 753 107.57 F 120 750 107.14 Sa 132 745 106.43 Su 101 741 105.86 M 89 738 105.43 u 93 733 104.71 W 100 726 103.71 h 103 724 103.43 F 115 722 103.14 Sa 125 719 102.71 Su 99 716 102.29 M 87 712 101.71 u 90 711 101.57 W 97 707 101.00 h 99 705 100.71 F 114 Sa 121 Su 97 (iv) he trend is slowly downwards, almost linear.

Ordinary ertificate, Paper II, 2004. Question 6 (i) here are n = 8 destinations. Sample mean x = 84/8 = 10.5 days. 2 1 84 62 Sample standard deviation = 944 = = 2.976. 7 8 7 (ii) Price ( ) 1800 1600 1400 1200 1000 800 600 400 200 0 0 5 10 15 20 Duration (days) here is very little suggestion of a linear relationship. It is possible to find holidays of the same length at very different prices. (iii) y = 9490/8 = 1186.25. he estimate of the slope parameter is ( )( ) 102230 84 9490 / 8 2585 = 2 944 84 / 8 62 = 41.69. So the line is y 1186.25 = 41.69(x 10.5) = 41.69x 437.78, i.e. y = 748.5 + 41.7x. [his is plotted on the diagram above. Note for plotting that, for example, the line passes x, y and (15, 1374).] through ( ) (iv) With x = 21, we get y = 1624(.2). However, the data are very variable and predictions are therefore unreliable. Also there are no data above x = 15, so to extend the line to x = 21 is extremely hazardous.

Ordinary ertificate, Paper II, 2004. Question 7 (i) In the tree diagram, represents cursory check and represents thorough check. he tree "starts" with at week 1; weeks 2, 3 and 4 are as shown. 4 3 0.2 2 0.2 0.8 0.7 0.7 0.8 0.3 0.3 0.7 0.2 0.8 0.7 0.3 0.3 (ii) From the tree diagram, the probabilities are (a) 0.7, (b) (0.7 0.2) + (0.3 0.7) = 0.35, (c) (0.7 0.2 0.2) + (0.7 0.8 0.7) + (0.3 0.7 0.2) + (0.3 0.3 0.7) = 0.525. (iii) For P(2 4), we have P(2 4) = P ( 2and4) P( 4) through the tree to obtain the numerator, we have ( ) P( ) ( ) + ( ) and, following the appropriate routes P 2 and 4 0.7 0.2 0.2 0.7 0.8 0.7 0.42 = = = 0.8. 4 0.525 0.525

Ordinary ertificate, Paper II, 2004. Question 8 he table could be rewritten in the order of SMRs (increasing or decreasing equally suitable), with the statement "SMR for whole of South rafford = 87" placed beneath it. (Possibly the statement "National SMR = 100" would also be useful.) he number of deaths in South rafford is 13% below the national average, but the electoral wards vary substantially. Sale Moor and St Martin's are over 20% higher than the national average, while Bowdon, Village, Mersey St Mary's, Hale and imperley are all more than 25% less than the national average. Priory and Broadheath are very close to the national average, Altrincham is 15% below it and Broadlands 18% below it. Why should Sale Moor and St Martin's be so high? Some study should be made of possible reasons, such as population profiles (age etc) and local conditions. omparison with those at the opposite extreme of the table would be useful.