Question 3.

A senior manager of a car financing firm wants to study the characteristics that determine loan repayment. The research assistant has provided the following information the manager is considering using stratified sampling procedure to draw a sample of 220 (10 percent of the number of loans).

Loan officers surname	Loan repayment in default	Loan repayment up to date	Total
Loan officers surname starts with letter A to H	100	1000	1100
Loan officers surname starts with letter I to P	30	400	430
Loan officers surname starts with letter Q to Z	70	600	670
Total	200	2000	2200

Based only on the information given in the table, briefly explain how you would use stratified sampling to obtain a sample (of size n=220). Clearly indicate the strata you would use, whether proportionate or disproportionate stratified sampling is more appropriate and why [3 marks]

Question 4.

Ali, an HR manager, wants to analyze employee attitudes towards overtime work. He has designed a questionnaire to collect information from a sample of the companys employees. Here are some questions he has included in the questionnaire. Briefly discuss the problems of these questions as written and suggest options to improve them or the questionnaire [1 mark each = 4 marks].

a): How many hours of overtime did you do last year? .hours

b): Dont you agree that overtime is necessary for the financial health of the company? [Yes] [No]

c): To what extend would you say you are happy?

d): I am given in advance the overtime schedule and I have the right to accept or refuse to do overtime [Yes] [No]