Student Name Student Number
Unit Code/s & Name/s FNSINC602 Interpret and use financial statistics and tools
Assessment Type ? Case Study ? Assignment ? Project ? Other (specify)
Assessment Name Assessment 2
Assessment Due Date End of Week 9 Assessment Received Date
Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
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Assessor Feedback:
? Student provided with feedback
Attempt 1 Satisfactory ?
Not Satisfactory ?
Date / /
Attempt 2 Satisfactory ?
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Assessor Name Assessor Signature
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Instructions to Student
General Instructions:
Students should complete a work health and safety check of their study/assessment environment prior to completing the assessment and any hazards addressed appropriately.
The assessment is to be completed using the spaces provided in this assessment paper.
All seven (7) questions must be answered satisfactorily.
Please use a font size of at least 11 points when completing the written portion of this assessment
Save your work regularly.
Use a logical file name, e.g. FNSINC602_Assess_2_Student_Name_Student_No.
Number of Attempts:
You will receive two (2) attempts for this assessment. Should your 1st attempt be not satisfactory, your teacher will discuss the relevant questions with you and will arrange a 2nd attempt to be scheduled. Should your 2nd attempt not be successful, or you fail to undertake the 2nd attempt, you will be deemed “not satisfactory” for this assessment item. Only one re-assessment attempt may be granted for each assessment item.
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to industry standard:
• apply statistical methods to work in the financial services industry
• source and access statistical and other data, and produce and interpret statistics
• use financial data tools and calculations to produce accurate and informative statistical reports from data
• efficiently record and store data for retrieval.
Evidence Required to be Submitted and Method of Submission The completed assessment paper is to be submitted online as either a Word document or a PDF document. Refer to each question for additional requirements
Instructions to Assessor Work, Health and Safety: A work health and safety check of the assessment environment is to be conducted prior to the assessment and any hazards addressed appropriately.
Examination Range and Conditions: Access to the textbook, reference materials, the internet and any notes is allowed. It is not a timed assessment and does not have to be completed in one session, but must be submitted in one document by the due date.
Materials to be supplied: This assessment
Assessment Context and Description (if required) In this assessment, you will complete a series of practical exercises and short answer (theory) questions to interpret and use financial statistics and tools.
Note to Student An Assessment Mapping Matrix is available from your teacher upon request. The mapping matrix shows how the knowledge and skills that you are being asked to demonstrate align to the requirements of each Unit of Competency.

Question 1.
Explain the following, illustrating your explanation with examples and diagrams where necessary:
• Scatter diagram
• Correlation of r = 0
• Line of best fit
• The difference between positive and negative correlation

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Question 2.
The financial reports of Brisbane North Pty Ltd and Brisbane South Pty Ltd disclosed the following profits for last five years. Both companies manufacture the same product.
Year Brisbane North P/L Brisbane South P/L
2011 $250,000 $110,000
2012 $310,000 $170,000
2013 $450,000 $250,000
2014 $650,000 $470,000
2015 $890,000 $550,000
Assessment task:
• Draw a scatter diagram and analyse and explain your analysis
• Calculate and discuss the correlation coefficient of the two companies using the product moment method
• If Brisbane North P/L makes a profit of $750 000, estimate the profit for Brisbane South P/L using:
o A line of best fit through the scatter diagram
o A line of best fit using the least-squares method

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Question 3.
Explain the following terms, illustrating your explanation with examples where necessary:
• Non-sampling error
• Primary data
• Random sampling
• Multistage sample
• Stratified sample

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Question 4.
The following table shows the average award rates of pay and consumer price index of Superland.
Year Weekly Award Wage
$ Consumer Price Index
(2005-6 =100)
June 2005 250.00 97.2
June 2006 265.00 103.5
June 2007 285.00 110.0
June 2008 310.00 112.0
June 2009 320.00 114.7
June 2010 335.00 125.3
June 2011 350.00 131.6
June 2012 365.00 139.0
Assessment task:
• Prepare a spreadsheet with columns for Year, Weekly Award, CPI, Real Weekly Award and Revised CPI
• Using the price index given, calculate real weekly award wages for each year for 2005-06 prices, round up to the nearest cent.
• Calculate an index for weekly award wages using June 2005 as the base year, round up to the nearest cent.
Hint: June 2006 real weekly award = (Old CPI/Old CPI of New base year) x 100 i.e. =(103.5/97.2) x 100 = 106.5 thus Revised CPI for June 2006 is 106.5

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Question 5.
The following sales data have been extracted from Brisbane North Pty Ltd for the years 2006 to 2013.
Year Sales (Y)
2006 17,000
2007 17,500
2008 18,200
2009 19,000
2010 19,500
2011 20,100
2012 20,500
2013 21,000
Assessment task:
Prepare a spreadsheet showing Exponential Smoothing of the data with a smoothing constant of 45%.

This page has been left blank for your answer to Question 5.

Question 6.
Standard deviation is commonly used by businesses to measure confidence in statistical conclusions. Unlike the variance, the standard deviation is expressed in the same units as the data.
Assessment task
Explain the standard deviation and how it is used in business. Illustrate your explanation by examples and application in some industries.

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Question 7.
History students scored an average of 82% in their final exam. Assuming a normal curve with a standard deviation of 5%:
(i) What is the probability of a student scoring less than 50%?
(ii) (ii) What percentage of students scored higher than 75%?
(iii) (iii) What percentage of students scored between 60% and 75%?

This page has been left blank for your answer to Question 7.