Professional Documents
Culture Documents
(Sampl)
There had been a growing uneasiness, lack of dedication and lethargic attitude - resulting in a escalating attrition rate
among the employees in the data-processing unit of ‘Finex’, the young and reputed consulting company, operating in
Bangalore. Probing into the matter, the HR manager, Ms. Lobo found that the chord of discontent was rising from the
disparity among the salaries of the employees in this department. The discrepancy between the highest and the lowest
monthly income was rather high - approximately Rs. 15,000. Ms. Lobo wanted to solve the matter from the roots,
which obviously called for understanding and evaluating the psychology of these employees, their attitude towards
Finex and other related issues. She was of the opinion that to make a thorough and intricate study, every employee in
this unit should be included – which she was convinced would be a mammoth task.
Being a large company spread all over Bangalore, Finex was proud of its large work-force. After a lot of convincing by
the head of the analysis unit that, Ms. Lobo decided that instead of including every employee in the data-processing
unit, a sample of optimum size should be chosen. It was now required to estimate the size of sample that should be
selected in order to yield an average monthly income, which shall be within Rs.500 around the actual average monthly
income 95% of the time.
It all started with the Customer Care Executive, who submitted the last month’s report of customer feedback to his
supervisor, as was his job – a large number of PCs were reported to be malfunctioning. This malfunctioning had a two-
fold impact - not only would the company incur a huge repair-expenditure, but also lose a large amount of precious
work hours. This was something Digitron could not afford to tolerate.
To identify the origin of the problem Mr. Olann decided to conduct a pilot survey. A simple random sample of 100 PCs
was selected without replacements. Technicians were deputed to examine the conditions of the PCs selected, and to
calculate the cost of needed repairs. The results of this inspection were as follows:
• sample average repair cost = Rs. 830
• sample standard deviation of repair cost = Rs. 110.
Mr. Olann, not satisfied with just a mere 100 PCs, wanted some additional PCs to be sampled and examined. Find this
extra number such that the estimate of the total cost of repairing all PCs (formed by pooling the observations in the
pilot and the planned sample) is to be within Rs. 100000 of the true total cost with probability 90%?
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♦ The discussion obviously hovered around different aspects of the affluent people of the society - the whims of their
behaviour, their attitude towards spending, frequency of ‘big’ purchases, et cetera.
♦ Among the stentorian male voices, a mild female voice was heard - it was Ms. Minu, the resident statistician.
♦ Ms. Minu: “Are we really clear on the definition of ‘affluent’? Well, who is ‘poorest’ among these rich people?”
♦ A survey done last year for launching the ‘Elite Card’ revealed the display of income among the rich of the society.
It was decided that not more than 0.57 % of these ‘rich’ people should be considered for the ‘Platinum Card’;
under the apprehension that too many astronomical transactions would be difficult to handle immediately. The
number of such cards issued may be increased later, depending on their acceptability and the capacity of the bank.