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# Vehicles heading south on Hosea Kutâko Avenue may go straight, turn right or turn left at the Sam Nujoma Avenue intersection.

INSTRUCTIONS TO CANDIDATES

ASSIGNMENT 02

QUESTION 1 (10 MARKS)

Vehicles heading south on Hosea Kutâko Avenue may go straight, turn right or turn left at the Sam Nujoma Avenue intersection. The city traffic engineer believes that equal proportions of cars normally head in the three different directions: straight, turn right and turn left. One hundred-and-eighty vehicles were observed on one day, with the following results:

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Straight                   Right Turn                  Left Turn

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Frequency                                    72                                   45                                63

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Can we conclude that the traffic engineer is correct? Use the 0.10 level of significance.

QUESTION 2 (10 MARKS)

Given the following prices and quantities:

Price (per kg)                                        Quantities produced

1994 1999 2004 1994 1999 2004

Milk 3.95 3.89 4.13 675 717 436

Cheese 61.50 62.20 59.70 117 115 115

Butter 34.80 35.40 38.90 77 74 82

2.1             Compute and interpret the Laspeyres price index number for the year 2004 with 1994 as base.(5 marks)

2.2             Compute and interpret the Paasche’s price index number for the year 2004 with 1994 as base.  (5 marks)

QUESTION 3  (10 MARKS)

An auditor of a certain company found that billing errors that occurred on a random sample of invoices were :

N\$ 32  ;   - NS 45  ;  N\$ 66  ;  N\$ 2  ;   - N\$ 8  ;   - N\$ 51  ;  N\$ 12  ;  N\$ 18

Positive errors indicate that some customers were billed too much, and negative errors that occurred indicate that customers were billed too little. Find the 99 % confidence interval estimate for the mean billing error. Assume that the population of billing errors are normally distributed.

QUESTION 4 (18 MARKS)

The asset turnovers, excluding cash and short-term investments, for the Oryx Liquor Company from 1993 to 2003 are listed below (in \$mil):  (Hint: use x=0 in 1993)

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