Mr Tan designed two computer models X and Y. Both have the same manufacturing cost. Mr Tan engaged his existing client Mr Chew to find out which model is more likely to sell. Mr Chew sent a survey to 1000 random customers, with the photos, price and specifications for each model. Question 1 I will buy Model X. SD D N A SA
Question 2 I will buy Model Y. SD D N A SA
SD = Strongly Disagree, D = Disagree, N = Neutral, A = Agree and SA = Strongly Agree. Mr Chew prepared the following report. Unfortunately, coffee spilled on the report before Mr Tan could read it. Mr Tan decided to figure out the missing information.

  1. (a)

    Assuming that Mr Tan has done all his calculations correctly, what are the mean and the standard deviation for Model X? Give your answers to 3 decimal places.

    Answer mean = ...

         standard deviation = ...
    
  2. (b)

    By comparing the means for both models, which model should Mr Chew recommend Mr Tan to produce? State your reason clearly.

    Answer

  3. (c)

    Mr Tan became troubled with the high standard deviation for Model Y, so he decided to find the missing values for SD, A and SA for Model Y. Help Mr Tan calculate the missing information.

    Answer missing values for SD = ..., A = ..., SA = ...

  4. (d)

    With all the information available now, which model should Mr Tan produce? State your reason clearly.

    Answer

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Worked solution

10(a)

1. Calculate the mean score for Model X using the frequency table.

For Model X,
xˉ=1(7)+2(16)+3(628)+4(347)+5(2)1000\bar{x}=\frac{1(7)+2(16)+3(628)+4(347)+5(2)}{1000}
xˉ=7+32+1884+1388+101000\bar{x}=\frac{7+32+1884+1388+10}{1000}
xˉ=33211000=3.321\bar{x}=\frac{3321}{1000}=3.321

2. Calculate the standard deviation using $\sqrt{\frac{\sum fx^2}{n}-\bar{x}^2}$.

First find ∑fx2\sum fx^2:
∑fx2=12(7)+22(16)+32(628)+42(347)+52(2)\sum fx^2=1^2(7)+2^2(16)+3^2(628)+4^2(347)+5^2(2)
=7+64+5652+5552+50=11325=7+64+5652+5552+50=11325

So,
standard deviation=113251000−(3.321)2\text{standard deviation}=\sqrt{\frac{11325}{1000}-(3.321)^2}
=11.325−11.029041=\sqrt{11.325-11.029041}
=0.295959=0.544021…=\sqrt{0.295959}=0.544021\ldots

To 3 decimal places,
standard deviation=0.544\text{standard deviation}=0.544

Answer

mean =3.321= 3.321

standard deviation =0.544= 0.544

10(b)

1. Compare the two mean scores and interpret the higher mean in context.

For Model X, mean =3.321=3.321.

For Model Y, mean =1.907=1.907.

Since 3.321>1.9073.321>1.907, Model X has the higher average response score. A higher score means stronger agreement with buying the model, so Model X is more likely to sell.

Answer

Mr Chew should recommend Model X, because its mean score, 3.3213.321, is higher than Model Y's mean score, 1.9071.907. This means customers were more likely to agree that they would buy Model X.

10(c)

1. Define variables for the missing frequencies and use the total number of customers.

Let the missing frequencies for Model Y be

SD=x\text{SD}=x, A=y\text{A}=y, SA=z\text{SA}=z.

Since there are 10001000 customers,
x+31+14+y+z=1000x+31+14+y+z=1000
x+y+z=955— (1)x+y+z=955 \quad \text{--- (1)}

2. Use the given mean to form a second equation.

The mean for Model Y is 1.9071.907, so the total score is
1.907×1000=1907.1.907\times 1000=1907.

Using the points 1,2,3,4,51,2,3,4,5,
1x+2(31)+3(14)+4y+5z=19071x+2(31)+3(14)+4y+5z=1907
x+62+42+4y+5z=1907x+62+42+4y+5z=1907
x+4y+5z=1803— (2)x+4y+5z=1803 \quad \text{--- (2)}

3. Eliminate one variable using the total-frequency and mean equations.

Subtract (1) from (2):
(x+4y+5z)−(x+y+z)=1803−955(x+4y+5z)-(x+y+z)=1803-955
3y+4z=848— (3)3y+4z=848 \quad \text{--- (3)}

4. Use the standard deviation formula to determine the value of $z$.

For a frequency distribution,
standard deviation=∑fx2n−xˉ2.\text{standard deviation}=\sqrt{\frac{\sum fx^2}{n}-\bar{x}^2}.

For Model Y,
∑fx2=x+4(31)+9(14)+16y+25z\sum fx^2=x+4(31)+9(14)+16y+25z
=x+16y+25z+250.=x+16y+25z+250.

Using x=955−y−zx=955-y-z,
∑fx2=955−y−z+16y+25z+250\sum fx^2=955-y-z+16y+25z+250
=1205+15y+24z.=1205+15y+24z.

From (3), 3y+4z=8483y+4z=848, so
15y+20z=4240.15y+20z=4240.

Hence
∑fx2=1205+4240+4z=5445+4z.\sum fx^2=1205+4240+4z=5445+4z.

Since the standard deviation is 1.6111.611 to 3 decimal places,
1.6105≤5445+4z1000−(1.907)2<1.6115.1.6105\leq \sqrt{\frac{5445+4z}{1000}-(1.907)^2}<1.6115.

Testing the integer value that satisfies this gives
z=197.z=197.

Check:
5445+4(197)1000−(1.907)2\sqrt{\frac{5445+4(197)}{1000}-(1.907)^2}
=6.233−3.636649=\sqrt{6.233-3.636649}
=1.611 correct to 3 d.p.=1.611\text{ correct to 3 d.p.}

So SA=197\text{SA}=197.

5. Find the remaining missing frequencies.

Substitute z=197z=197 into (3):
3y+4(197)=8483y+4(197)=848
3y+788=8483y+788=848
3y=603y=60
y=20.y=20.

Substitute y=20y=20 and z=197z=197 into (1):
x+20+197=955x+20+197=955
x=738.x=738.

Therefore,
SD=738,A=20,SA=197.\text{SD}=738,\quad \text{A}=20,\quad \text{SA}=197.

Answer

SD =738= 738, A =20= 20, SA =197= 197

10(d)

1. Compare the completed response distributions for the strongest buying intention.

From the completed table:

Model X has 22 customers who chose SA.

Model Y has 197197 customers who chose SA.

2. Make a recommendation with a clear contextual reason.

Since SA means “Strongly Agree”, the customers who chose SA show the strongest intention to buy.

Model Y has far more SA responses, so it is more likely to have strong demand despite its lower mean.

Answer

Mr Tan should produce Model Y, because it has many more customers who strongly agree that they will buy it: 197197 customers for Model Y compared with only 22 customers for Model X.

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