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Aec 203: Economics Statistics(Instute Of Open Learning) Question Paper
Aec 203: Economics Statistics(Instute Of Open Learning)
Course:Bachelor Of Commerce
Institution: Kenyatta University question papers
Exam Year:2009
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KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
INSTITUTE OF OPEN LEARNING PROGRAMME
EXAMINATION FOR THE DEGREE OF BACHELOR OF BACHELOR ARTS,
BACHELOR OF EDUCATION AND BACHELOR OF COMMERCE
AEC 203: ECONOMICS STATISTICS
DATE: Tuesday 11th August, 2009 TIME: 8.00 a.m. – 10.00 a.m.
INSTRUCTIONS
Answer question ONE and any other TWO questions.
1. a) Discuss two types of measurement scales noting where they are used.
[4 marks]
b) The following data shows the wages of 50 employees in a factory in ‘000’
Kenya shillings
Income level in ‘000 Number of employees
10 - 20 4
20 - 30 8
30 - 40 10
40 - 50 16
50 - 60 8
60 - 70 2
70 - 80 2
i. Prepare a cumulative frequency curve and use it to estimate the
number of employees earning below kshs.22,000. [9 marks]
ii. Use the data to calculate the mean, median, the standard deviation
and coefficient of variation. [15 marks]
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2. The government of tulizeni considers any household earning an income of below
3000 shillings a month to be poor. In a certain division, there are a total of
200,000 households with a mean income Ksh.5,000 and a standard deviation of
Ksh.1.400.
a) Find the probability that a household selected at random in this division is
poor. [5 marks]
b) Calculate the total number of households that are poor. [3 marks]
c) Find the probability that a household selected at random in the division is
earning between Ksh.3,500 and Ksh.6,700. [8 marks]
d) Describe 4 characteristics of a normal distribution curve. [5 marks]
3. The following data shows the price and quantity demanded of milk for a period of
10 months.
Quantity demanded (Y) in litres Price of the Milk per litre (X)
51 34
54 33
35 48
63 31
75 27
69 30
88 25
97 25
76 28
a) Estimate the demand equation for milk using regression analysis.
[14 marks]
b) Estimate the quantity of milk demanded when the price is 40 shillings per
litre. [2 marks]
c) Compute the coefficient of determination and interpret it. [5 marks]
4. a) Distinguish between a type I and type II error using an example.
[4 marks]
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b) Discuss four characteristics of a good estimator. [4 marks]
c) Explain 3 ways of measuring probability using an example in each case.
d) Discuss using clear examples where the following measures of central
tendency can be best applied:
i) Median [2 marks]
ii) Mode [2 marks]
e) Explain the meaning and the use of a Lorenz curve in Economics.
[3 marks]
…………………………
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