Statistic Problems

Your class has reached the following scores (on a scale of twenty points) in the first test exam in October, with nineteen of you participating. 14; 12; 16; 11; 14; 11; 11; 20; 12; 13; 13; 16; 19; 14; 17; 14; 9; 12; 13: Required (i) Present the data in a histogram using classes 8-9; 10-11; : : : ; 18-19; 20-21. (ii) What is the median exam score? What is the upper quartile score and the lower quartile score? (iii) What are the range and the inter-quartile range of the scores? (iv) Display the above data using a box plot and briefly comment on the result. (b) A class has written two exams, namely a Quantitative Techniques exam with an average score 71 and standard deviation 7 and a Qualitative Techniques exam with an average score 67 and standard deviation 4. Out of the two stacks of exam copies, the paper of one student is drawn at random and then the student’s name is searched and found in the other stack. Assume the scores obtained by students in each exam are independent of each other. QUESTION TWO Temple Ltd is currently considering a programme of expansion through purchase of new plant equipment. Two mutually exclusive investment projects have been identified as potential means of achieving this. The following information has been collected regarding the two projects: Project 1 Project 2 £ £ Initial Investment 200,000 150,000 Expected profit per annum: Year 1 30,000 10,000 Year 2 25,000 12,000 Year 3 25,000 12,250 Year 4 22,500 25,000 Year 5 17,500 35,000 Estimated residual value 10,000 7,500 1 of 3 FIN5B1 Quantitative Analysis for Finance and Investment - Coursework 2017-2018 Temple Ltd has a scrap 12% cost of capital and its maximum payback period is 4 years. The company uses the straight-line method of depreciation for all fixed assets when calculating net profit. Neither project would affect the working capital of the business. Required a) Calculate the payback period and Net Present Value for both projects. b) Write a memo to the Board of Temple Ltd advising which project ABC should accept, stating clearly your reasons. c) For the project you have chosen as the best investment calculate the Internal Rate of Return and explain what the IRR represents. QUESTION THREE A Dubai-based media company is trying to decide whether to bid for a major TV advertising contract. In the past the company’s main competitor, based in Abu Dhabi, has submitted bids 70% of the time. If the Abu Dhabi competitor does not bid then the probability that Dubai Media will get the job is 0.5. If the Abu Dhabi competitor does bid then the probability that Dubai Media will get the job is 0.25. (a) If the Dubai-based company gets the job, what is the probability that the Abu Dhabi company did not bid? (b) What is the probability that the Dubai-based company will get the job?