Business Statistics Assessment 1 v2.1

Assessment 1 of Business Statistics for FNS60217 Advanced Diploma of Accounting students. The assessment includes 17 tasks to be completed in 7 weeks. The tasks include developing a questionnaire, frequency distribution, and interpreting statistical data. The assessment aims to evaluate the student's knowledge of interpreting and analyzing financial statistical data in various contexts and industry settings.

T-1.8.1
Details of Assessment
Term and Year T4 2018 Time allowed 7 Weeks
Assessment No 1 of 2 Assessment Weighting 50%
Assessment Type Portfolio of Activities
Due Date Week 7 Room TBA
Details of Subject
Qualification FNS60217Advanced Diploma of Accounting
Subject Name Business Statistics
Details of Unit(s) of competency
Unit Code and
Title
FNSINC602 Interpret and use financial statistics and tools
Details of Student
Student
Name
Student ID College
Student Declaration: I declare that the work
submitted is my own, and has not been copied or
plagiarised from any person or source.
Signature: ___________________________
Date: _______/________/_______________
Details of Assessor
Assessor’s Name
Assessment Outcome
Results
Competent Not Yet Competent
Marks 50
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Student Declaration: I declare that I have been
assessed in this unit, and I have been advised of my
result. I also am aware of my appeal rights and
reassessment procedure.
Signature: ____________________________
Date: ____/_____/_____
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have provided
appropriate feedback
Student did not attend the feedback session.
Feedback provided on assessment.
Signature: ____________________________
Date: ____/_____/_____
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T-1.8.1
Purpose of the Assessment:
The purpose of this assessment is to assess the student in the
following learning elements and performance criteria of the unit:
Competent (C) Not Yet Competent
(NYC)
1.0 Apply statistical methods to work
1.1Appropriate statistical methods that apply to financial services work
are evaluated and chosen to suit the required work outcome
1.2 Suitable tools and techniques for statistical analysis are known and
used effectively
2.0 Source and interpret statistical data
2.1 Internal and external data and information sources are identified
and accessed to source relevant current data
2.2 Data are validated in accordance with industry statistical standards
2.3 Data summaries and trends are used to verify currency and utility
2.4 Sampling techniques and diagrammatic, graphical and tabular
information are correctly interpreted and used for the required purpose
3.0 Analyse data using appropriate techniques and tools
3.1 Organisational requirements and priorities are reflected in the
analysis of statistical data
3.2 Analysis and descriptive tools and techniques are used to meet the
required outcomes with any data errors corrected
3.3 Reports of analysis are produced on time and in the appropriate
detail and format including use of diagrammatic, graphical and tabular
information
4.0 Record statistical data analysis results and records
4.1 Records of data and statistical analysis are validated to ensure
accuracy and consistency with industry and organisational standards
4.2 Records are filed and stored for easy retrieval while meeting all
security requirements
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Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under Purpose of the assessment
section are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A
student who is assessed as NS (Not Satisfactory) is eligible for re-assessment.
Resources required for this Assessment
 All documents must be completed in the class
 Upon completion, submit the assessment to your trainer.
 Refer to the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer
Instructions for Students
Please read the following instructions carefully
 This assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved.
You will be provided with feedback on your work within 2 weeks of the assessment due date. All other
feedbacks will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps
in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be
deemed competent for this unit of competency.
 If you are not sure about any aspects of this assessment, please ask for clarification from your
assessor.
 Please refer to the College re-assessment and re-sit policy for more information.
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T-1.8.1
Assessment 1 (50 Marks)
Instructions:
 This is an individual assessment.
 This assessment need to be completed in class and at home
 The purpose of this assessment task is to assess the students’ knowledge
essential to interpreting and analysing financial statistical data in a range of
contexts and industry settings.
 To make full and satisfactory responses you should consult a range of
learning resources, other information such as handouts and learners’
resources and slides on Elearning.
 Make sure you attempt all the assessment tasks.
 You may attach a separate sheet if required.
 You must fill out the cover page of the assessment
 You can use pencils to answer questions and for drawing alternatively you
may work on MS Word and Excel. And submit hard copy.
 You must staple the loose sheets together along with the cover page.
 You must attach the loose sheets chronologically as per the page numbers.
Resources required to complete the assessment task:
 Computer
 Internet
 MS Word & Excel
 Printer or e-printer
 Adobe acrobat/reader
 Learning management system (Elearning access)
Assessment Instruction:
You are required to complete 17 tasks for this assessment. These tasks are to be
completed in 7 weeks during class time and at home. Details marks are provided
alongside the individual tasks. By the end week 7 you are required to submit hard
copy of your completed assessment to your class teacher during class time.
Week 1: Introduction to Statistics and Visual Presentation of Data9 marks
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Task 1: (2 marks)
a. Define population and sample. Explain why sample is preferred than
population. Which Australian Government Organisation surveys the
total population of Australia?
In statistics, population is the whole set of observations likely to be made from
a defined group being studied or under collection of information for making
decisions that are data driven. Even though population is usually used to refer
to people, it may also mean things. For example, if we are studying the age of
students admitted to Academies Australasia last year then the population will
be the set of ages of all the students admitted last year or average daily
temperatures for Melbourne city in January. A sample on the other hand
refers to a part, fraction or a percentage of population containing the traits of
the large population. Therefore, population is whole where as sample is just
but a portion of the population. A sample is usually of utmost importance for
large population and is often used by researchers due the fact that it is a bit
impractical studying the entire/large population. Sampling should unbiasedly
exhibit the features of the entire population. Most often researchers would like
to know more about a population but lack all the data needed. It is at this point
that they resolve to a sample to represent the general trends that he/she may
need.
Sampling is preferred to entire population due to a number of reasons: When
the economy is tight presented with limited resources and time is of utmost
importance, then sample qualifies to be the best option. As a result, a sample
saves on money, effort, and time that would otherwise be consumed while
collecting data from the entire population. Besides, lists in samples are up-to-
date and that errors are easily controlled as opposed to population. Lastly, the
researcher is likely to know who makes up the population an act which has
proven impractical with a population.
Survey of the total Australian population is done by the Australian Bureau of
Statistics (ABS), an independent statistical agency of the Australian
Government and is headquartered at Canberra. ABS conducts census at an
interval of five years whereby the last census was conducted in 9 August,
2016. Also the bureau collects data on environmental issues, health, research
and innovation, crime, and education.
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b. State the most common methods of collecting primary data. What are
the advantages of collecting secondary data? Give examples of major
secondary data collection sources?
Primary data are the first hand data collected by the researcher
himself/herself. The most common methods of collecting primary data are
interviews, surveys, and questionnaires. Other methods are ethnographies,
focus groups, content analysis and direct observations. Secondary sources
are categorized as either published or unpublished. Examples of major
secondary data sources are surveys, organization records, census and data
obtained through qualitative research. Other sources include professional and
business associations, media and internet sources, think tanks, and
foundations among others.
Collection of secondary data is of varied advantages: to begin with, secondary
data saves on time that would have been spent in collecting the data
specifically the quantitative data since it is easier to access and retrieve.
Besides, the cost of collecting secondary data is much cheaper than the
primary data. Secondary data are already documented hence the researcher
can easily access them through the print-outs, internet, media or the
publication containing the relevant information. Therefore, this process is
relatively cost effective compared to primary sources where the investigator
has to go through the tedious process manually.
In addition, collection of secondary data provides large and quality data that
may not be obtained by primary methods since a lot of relevant information is
already gathered and stored. In addition, it is feasible for international and
longitudinal comparative studies. Furthermore, while collecting data through
secondary means, one is presented with a predetermined reliability and
validity making it easier for the researcher to re-examine data before finally
using it. Moreover, collection of secondary data may clarify and sometimes
answer the research question.
Task 2: (2 + 1 = 3 marks)
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Develop a questionnaire model (with 10 questions) to conduct a survey on the topic,
“Does Academies Australasia require entertainment facilities for its students?”
Topic: Does Academies Australasia require entertainment facilities for its students?
Question 1: What is your age bracket? Indicate by ticking in the box provided.
20-24 25-29 30-34 31-35 36 and above
Question 2: Sex:
Male
Female
Question 3: What do you know about entertainment at Academies Australasia? (Please
provide a brief description)
Question 4: In your own opinion, do you think Academies Australasia require
entertainment facilities for its students?
Yes
No
Question 5: If yes, what are some of the benefits the students are likely to gain from
these facilities?
Question 6: What should the management do to elevate the quality of entertainment
facilities in Academies Australia?
Question 7: How do you think the entertainment facilities in Academies Australia will
be of help to you in your post graduation life?
Question 8: Indicate your level of satisfaction with entertainment facilities in this
institution.
Strongly agree Agree Disagree
Question 9:
What are some of the major facilities you would recommend the management to
consider? (Tick all that apply.
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z z z z z
z
z
z
z
z z z

T-1.8.1
Sporting facilities
Recreational facilities
Television rooms
Women’s queer areas
Social Halls
Facilities for indoor games
Any other (Name)
Question 10: How are you likely to recommend entertainment facilities of this
institution?
How questionnaire can assist to collect statistical data?
Questionnaire is one of the survey tools used for collecting data thus making it appropriate
for statistical survey. The purpose of questionnaires is to gather raw data that can assist the
researcher or an organization since it contains a set of questions necessary for gathering
information that these entities may deem important. Most questionnaires in the modern era
are computer readable with predetermined coding thus making their analysis easier. Besides,
the answers to questions are recorded and summed up bringing in the measures of tendency
like mean and median. Using the example from this questionnaire, we can take the age
brackets to come up with a class interval of five. Furthermore, the questionnaire contains the
class limits with the lower class limit being 19.5. Upon completion of the questionnaire,
frequency can be obtained from the number of participants who take part in the study.
Therefore, mean, median, modal class and other measures of central tendency can be
obtained.
Task 3 – Frequency Distribution: (2 marks)
Below is a list of ages of students enrolled on a part-time business course:
20 17 29 30 22 31
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z
z
z
z
z
z
z

T-1.8.1
19 23 27 21 18 17
19 19 19 22 23 18
24 25 20 19 18 22
You are required to do the following in the space/ template provided:
a) Array the data.
b) Organise the data in an ungrouped frequency distribution.
c) Construct a grouped frequency distribution, in groups of size three.
d) Construct a histogram and draw a polygon (frequency curve) of the data.
Solution:
a) Array:
17, 17, 18, 18, 19, 19, 19, 19, 19, 20, 20, 21, 22, 22, 22, 23, 23, 23, 24, 25, 27,
29, 30, 31
b) Ungrouped frequency distribution
Age Tally Frequency
17 II 2
18 II 2
19 IIII 5
20 II 2
21 I 1
22 III 3
23 III 3
24 I 1
25 I 1
27 I 1
29 I 1
30 I 1
31 I 1
c) Grouped frequency distribution
Ages Frequency
17 – 19 10
20 – 22 6
23 – 25 4
26-28 1
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29-31 3
d) Histogram:
Polygon:
Frequency Frequency of Student Ages
10
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8
6
4
2
0
17-19 20-22 23-25 26-28 29-31
Ages (Years)
Task 4: (2 marks)
a) Pictograph
The following table shows the number of computers sold by a company for the first
week of January to March. Construct a pictograph for the table.
Month January February March
Number of
computers
4 6 5
b) Tree diagram:
You are at a carnival. One of the carnival games asks you to pick a door and then
pick a curtain behind the door. There are 3 doors and 4 curtains behind each door.
How many choices are possible for the player (you)?
Present the answer through a tree diagram.
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Week 2: Measures of Central Tendency (1+1+1+1= 4 marks)
Task 5:
Calculation of Mean, Median and Mode from grouped date:
Number of complaints per week received by Radio Crazy ∈a 12 week rating period :
No of
complaints
Midpoint (m) No of
weeks
fm Cumulative
Frequency
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(f)
0-9 4.5 2 9.0 2
10-19 14.5 5 72.5 7
20-29 24.5 3 73.5 10
30-39 34.5 1 34.5 11
40-49 44.5 1 44.5 12
Required:
a) Calculate the mean
b) Calculate the median class
c) Calculate the modal class
d) What remedial actions the management can take from the above findings?
Solution:
a) Mean =
∑ f m N
= 234/12
= 19.50
b) Median = L+( N +1
2 −C
f )xW
9.5+ ( 13
2 −2
5 ) x 10
=18.50
c) 10-19
Week 3: Measure of Dispersion (7 marks)
Task6: (1 + 2 = 3 Marks)
Below is sum of the points scored by each team in the 2017 NRL Premiership. You
are required to find out the following from the given data:
a) What is range?
b) What is the quartile deviation?
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T-1.8.1
Team Points Scored
Melbourne 521
Manly 539
Brisbane 511
Wests 519
St George 483
New Zealand 504
Nth Qld 532
Newcastle 478
Canterbury 449
South Sydney 531
Sydney 417
Penrith 430
Cronulla 428
Parramatta 385
Canberra 423
Gold Coast 363
Solution:
a) Range: 539-363
=176
b) Quartile deviation:
Arranging data in ascending order:
363, 385, 417, 423, 428, 430, 449, 478, 483, 504, 511, 519, 521, 531, 532, 539
Q1 = (n-1)+n Q3 = 3(n+1)+n QD = Q3-Q1
4 4 2
= (16+1) = 3(16+1) = 520.50-424.2
4 4 2
= 4.25 =12.75 =96.25/2
=423+(0.25(428-423)) =519+(0.75(521-519))
=424.25 =520.50
Hence QD= 48.125
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Task 7: Mean, Mean Deviation, Standard Deviation, Variance and Range
(Grouped Data): (2 marks)
The following table shows the distribution of income of the 50 employees at an
Adelaide Freight Company:
Income
$’000
m No of
Employees
fm Im-⃗ xI fIm-⃗ xI Im-⃗ xI² fIm-⃗ xI²
20 – 25 22.5 5 112.5 13.53 67.65 183.06 915.3
25 – 30 27.5 6 165.0 8.53 51.18 72.76 436.56
30 – 35 32.5 15 487.5 3.53 52.95 12.46 186.9
35 – 40 37.5 10 375.0 1.47 14.7 2.16 21.6
40 – 45 42.5 8 340.0 6.47 51.76 41.86 334.88
45 – 50 47.5 2 95.0 11.47 22.94 131.56 263.12
50 – 55 52.5 5 262.5 16.47 82.35 271.26 1356.3
You
Mean = fm /No of employee x = ∑ f m = 1,775/50 = 35.50
n
Mean Deviation = ∑ f m-x
∑ f
= 316/50 = 6.32
Standard Deviation, δ = ∑ f m-x = 2,950 = 7.68
∑ f 50
Variance, δ² = Ram x = HD-LD
= 59.98
are required to calculate the following using the above data:
Week 4: Correlation and Regression: (9 marks)
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Task 8: Calculate and describe the correlation coefficient between advertising (x)
and sales (y). ( 5 marks)
Year $’000 Advertising $’000 Sales
2012 10 200
2013 11 230
2014 12 250
2015 14 270
2016 15 280
2017 16 300
Solution:
Adv (x) Sales (y) (x – x) (y-y) (x-x)(y-y) (x-x)² (y-y)²
10 200 -3 -55 165 9 3025
11 230 -2 -25 50 4 625
12 250 -1 -5 5 1 25
14 270 1 15 15 1 225
15 280 2 25 50 4 625
16 300 3 45 135 9 2025
Mean of each variable:
X = 13
Y = 255
r = ∑ ( x−⃗ x ) ∑( y−⃗ y )
√ ∑ ( x−⃗ x ) ²∑ ( y−⃗ y )² =¿
∑ ( x −⃗ x ) ∑ ( y−⃗ y )=420
∑ ( x −⃗ x ) ²=28∑ ( y−⃗ y ) ²=6550
r = 420
√28 x 6550
r=0.98
Explain how advertising can influence the sales:
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T-1.8.1
Since the correlation co-efficient (r) is expressed as 0.98, there is a strong positive
correlation that emerges between advertising and sales. Thus the advertising is
directly proportional to the sales.
Task 9: (4 marks)
The higher the aggregate running time of a particular machine, the higher the
number of work hours required for maintenance. Below are the results of a survey on
selected machines.
Machine No Running time (hrs) Hours Maintenance
1 60 5
2 45 4
3 120 8
4 80 5
5 110 12
Required: Estimate the maintenance hours required for a machine that has been
used for 100 hours.
Solution:
(Use hrs)
X
(Maintenance hrs)
y xy x²
60 5 300 3600
45 4 180 2025
120 8 960 14400
80 5 400 6400
110 12 1320 12100
Y = a + bx (Calculate b first), where Y is maintenance hours.
a = ∑ y−b ∑ x
n b = n ∑ xy−∑ x ∑ y
n ∑ x2−(∑ x) ²
n ∑ xy−∑ x ∑ y
n ∑ x2−( ∑ x)² = 5 ( 3160 ) −(14110)
5 ( 38525 ) −172225
1690
20400 =0.083
Hence b=0.083
a= ∑ y−b ∑ x
n = 34−0.083(415)
5
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a=-0.089
Explain the relationship between running time and maintenance hours:
Y = a + bx
= - 0.089 + 0.083(1)
= 0.006 hours
Explain the relationship between running time and maintenance hours:
Thus this ratio explains the relationship between each hour of running time and the
hour of maintenance.
Estimated maintenance hours:
Y = a + bx
= - 0.089 + 0.083(100)
= 8.21 hours
This shows that for a machine that has been used for 100 hours, the required
maintenance hours are 8.21 hours
Week 5: Probability (4 marks)
Task 10: (4 marks)
All customers of Chocmelt Ltd purchase online. When buying, they provide
customer details (include sex and age). The profile of Chocmelt Ltd customers has
been determined as below:
Age Under 20 20 – 40 40 – 60 Over 60 Total
Male 20 75 30 25 150
Female 30 75 70 25 200
Total 50 150 100 50 350
Required:
(i) What is the probability that next customer order to be received will be from a male?
PE = n( E )/n ( S ) = 150/(150+200) = (150/350)x100 = 42.86%
(ii) What is the probability that the next customer who orders is 40 years or older?
PE = n( E )/n ( S ) = (100+50)/350 = (150/350)x100 = 42.86%
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(iii) What is the probability that the next customer order received is from a female
between 20 and 40?
PE = n( E )/n ( S ) = (75/350)x100 = 21.43%
(iv) What is the probability that the 1st customer order received is from a female and the
2nd customer is a male?
1.) PE = n( E )/n ( S )
= 200/350
2.) PE = n( E )/n ( S )
= 150/350
=((200/350)x(150/350))x100
= 24.49%
Task 11: (2 marks)
Explain Mutually Exclusive and dependent events. Draw Venn diagram to make a
visual presentation both the events.
Mutually exclusive means one event, if one event happens another event cannot
happen which means independency of events.
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A B A B

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Munually Exclusive Events
Mutually exclusive events do not overlap in the Venn diagram
P(A or B)= P(A) + P(B)
A B
.
Dependent Events
This is where two or more events depend on each other i.e. is where
the probability of an event taking place is subject to another event
taking place.
Diagram :- P(A/B) = P (A ∩ B)
A A ∩ B B
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Week 6: Normal Distribution and Time Series & Trend Analysis (6 Marks)
Task 12: Normal Distribution (4 marks)
Limptons Laboratories has the following sales statistics:
Mean = $35,000 Standard Deviation = $6,000
The sales form an approximate normal curve.
Required to calculate the following using drawing and equation:
a) What is the probability that Limptons will achieve a sales level greater than
$32,000?
b) What is the change that sales will not be less than $20,000 and not greater than
$44,000?
c) Above what level sales amount are the top 20% of sales targets?
Solution:
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a) Z = X – M
δ
= 32,000 – 35,000
6,000
= 3,000/6,000
= 0.50
P = 0.1915+0.50
= 0.6915
= 69.15%
b)
Z1 = Z = X – M
δ
= 20,000 – 35,000
6,000
= 15,000/6,000
= 2.50
= 0.4938
Z2 = Z = X – M
δ
= 44,000 – 35,000
6,000
= 9,000/6,000
= 1.50
= 0.4332
P = Z1 + Z2
= 0.4938 + 0.4332
= 0.9270
= 92.70%
c)
Z = X – M
δ
30 = x – 35,000
100 6,000
30x6,000 = 100x-3,500,000
180,000+3,500,000 = 100x
X = 4,380,000
100
X = 40,040
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Task 13: Time Series & Trend Analysis
Plot the following data freehand and estimate sales for 2018 and 2019:
Annual
soft drink
sales
($’000,000)
2009 2010 2011 2012 2013 2014 2015 2016 2017
13 15 17 18 19 20 20 21 22
Solution: (2 marks)
Annual
soft drink
sales
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
($’000,000
) 13 15 17 18 19 20 20 21 22 23 24
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2008 2010 2012 2014 2016 2018 2020
0
5
10
15
20
25
30
Sales of Soft Drinks
($’000,000)
Year
Sales
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Week 7: Ratio Analysis (8 marks)
Task 14:(6 marks)
The following information is a condensed version of the financial statements for
Enchanting Florist Ltd for the two years ended 30 June 2016 and 30 June 2017.
30 June 2016 30 June 2017
Sales (all on credit) 550,000 650,000
Cost of goods sold 200,000 280,000
Depreciation 40,000 40,000
Interest 20,000 25,000
Other expenses 100,000 110,000
Total expenses 360,000 455,000
Net profit before tax 190,000 195,000
Income tax 57,000 59,000
Net profit after tax 133,000 136,000
Comparative balance sheets
30 June 2016 30 June 2017
Current assets 86,000 0
Cash on hand 3,000 2,000
Accounts receivable 55,000 51,000
Inventory 28,000 35,000
Non-current assets 410,000 470,000
Property, plant & equipment 400,000 450,000
Intangible assets 10,000 20,000
Total assets 496,000 558,000
Current liabilities 19,000 42,000
Bank overdraft – 25,000
Accounts payable 19,000 17,000
Non-current liabilities 200,000 200,000
Mortgage loan (10%) 200,000 200,000
Total liabilities 219,000 242,000
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Net assets 277,000 316,000
Equity
Ordinary capital ($1.00 shares) 200,000 230,000
Preference capital (10%) 40,000 40,000
Reserves 10,000 10,000
Retained earnings 27,000 36,000
Total Equity 277,000 316,000
Ordinary dividends paid 120,000 123,000
Preference dividends paid 4,000 4,000
Total ordinary equity at 1 July 2016 225,000
Inventory at 1 July 2016 25,000
Market value of ordinary shares $3.50 $3.75
1. Calculate the following ratios for each year: (6 marks)
(a) Liquid ratio
(b) Net profit ratio
(c) Times interest cover
(d) Earnings per share
(e) Price Earnings Ratio
(f) Return on equity (shareholder’s funds)
(g) Debtor collection period (turnover rate)
(h) Inventory turnover
2. Compare and explain the link between the movement in the earnings per share
and the price earnings ratio. What may explain the difference in the movement
in these two ratios? (1 mark)
3. Give two actions that the business may have taken to improve the debtor
turnover rate. (1 mark)
Solutions:
Solutions:
Part 1 (6 Marks):
Ratio 2016 2017
(a) Liquid ratio
=(Cash equivalent+cash)
current liabilities
=86,000÷19,000
=4.5263
=88,000÷42,000
=2.095
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(b) Net profit ratio
=Net Profit after tax ÷ Net
Sales
=133,000÷550,000
=0.2418
=24.18%
=136,000÷650,000
=0.2092
=20.92%
(c) Times interest cover
=EBIT ÷ Interest expenses
=190,000÷20,000
=9.5
=195,000÷25,000
=7.8
(d) Earnings per share
= (Net income after tax -
Preferred stock dividends)
÷
Average number of
common shares
outstanding
=(133,000-
4,000)÷240,000
=0.5375
=(136,000-
4,000)÷270,000
=0.4889
(e) Price Earnings Ratio
=Market value per
share÷Earning per share
3.5÷0.537
6.51769
3.75÷0.4889
7.67028
(f) Return on equity
(shareholder’s funds)
=Equity share
capital+Preference share
capital+Reserve
=200,000+40,000+10,000
=250,000
=230,000+40,000+10,000
=280,000
(g) Debtor collection
period (turnover rate)
=Credit sale÷average
debtors
=550,000÷55,000
=10 times
=650,000÷51,000
=12.7451 times
(h) Inventory turnover
=Cost of sales÷average
=200,000÷28,000
=7.14857 times
=280,000÷35,000
=8 times
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T-1.8.1
inventory
Part 2 (1 Mark):
Price earnings ratio is widely used in evaluating the expected stock returns in stock
market. The basic price earnings ratio is derived as a ratio of firm’s market price of
stock and earnings per share. We can use trailing; computed by dividing the market
price of the stock by number of previous quarters of actual earnings per share
Part 3 (1 Mark):
-Rewarding timely payments-rewarding debtors who have a history of timely
payments will ensure timely or earlier payments by those debtors going forward
-Defining credit policies-Design and document clear credit policies and encourage
adherence of the same to reduced instances of delays in collection. A frequent revisit
and modification of the policies will help adjust to the new environment.
Task 15:
You are interested to research on the changes of interest rate for last 10 years in
Australia to understand the trend. Collect secondary data from the publications by
Reserve Bank of Australia, put your findings on a Line Graph and describe the trend.
(1 mark)
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T-1.8.1
Business Statistics, Assessment 1, v2.1 Page 29

T-1.8.1
Task 16:
When you are filing statistical documents, what factors should be considered when
deciding the filing order? How can you ensure the security of both soft copy and hard
copy data base? (1 mark)
The discussion in the second part looks at the factors especially that are considered
when making decision on supplier partnerships. They include; Cultural Fit – including
values, Cost – covering price, Total Cost of Opportunity (TCO), Value – value for
money and value generation opportunities, Experience in the market and current
references, Flexibility, Response to change – in orders and products and Quality –
covering product and service quality and quality history
Task 17:
“Validated Data helps identify suspicious and invalid cases, variables, and data
values in the active data set” – Based on this statement explain why statistical
analysis are required to be validated.(1 mark)
It refers to a process model useful in obtaining approval as well as ensuring
credibility of conclusion. Besides, validation eliminate data manipulation possibilities
that could misuse information.
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T-1.8.1
MARKING GUIDE FOR ALL TASKS (for trainer use only)
The assessor needs to use judgment in providing marks for the tasks based on leaner performance.
FNSINC602 – Business Statistics – Assessment 1
Details MARKS ALLOCATED MARKS ACHIEVED
Task 1 Population, Sample and Secondary data 2
Task 2 Questionnaire model 3
Task 3 Frequency Distribution 2
Task 4
a. Pictograph 1
b. Tree diagram 1
Task 5
c. Mean 1
d. Median class 1
e. Modal class 1
f. Remedial actions 1
Task 6
a. Range 1
b. Quartile deviation 2
Task 7 Mean, Mean Deviation, Standard Deviation,
Variance and Range
2
Task 8 correlation coefficient 5
Task 9 correlation coefficient 4
Task 10 Probability 4
Task 11 Venn diagram 2
Task 12 Normal Distribution 4
Business Statistics, Assessment 1, v2.1 Page 31

T-1.8.1
Task 13 Time Series & Trend Analysis 2
Task 14 Ratio Analysis 8
Task 15 Line Graph 1
Task 16 Filing 1
Task 17 Data validation 1
Total 50
Business Statistics, Assessment 1, v2.1 Page 32