INDIAN INSTITUTE OF MANAGEMENT CALCUTTA EXECUTIVE PROGRAMME IN BUSINESS MANAGEMENT (EPBM- X1) Statistics For Managerial Decisions Full Marks: 100 Answer ALLS questions Time: 1 Hour heses. 1. On the basis of past data, suppose it is known that 0.5% of the components of a particular type ‘manufactured by a firm are defective. The quality inspection procedure is such that 90% of the defective ‘components will actually be found defective and 3% of the non-defective components will also be wrongly declared defective. A component is selected at random from the manufacturing process and inspected. (a) What is the probability that the component is declared defective? (b) If the component is declared defective, what is the conditional probability that the item is actually defectiv [10 + 10= 20 marks) 2. The following information is available about the graduating batches of a business school during the period 2002 - 05. [ Year 2002 [2003 [2004 | 2003] | Percentage of students securing ajob | 20 30 40 50 l with a multinational One student is chosen at random from the graduating batch of cach year. Let X be the number of students, out of the four so selected, who had secured a job with a multinational. Find (a) The probability distribution of X (b) The Mean of X (c) The Standard Deviation of X (12 +3 +5=20 marks} 3.(a) Only 1% of all households in a city do not have colour television set. A television marketing analyst randomly selects 200 households from the city. i) How many households would he expect to not have a colour televi ? ii) What is the probability that 8 or more households do not have a colour television set?” iii) What is the probability that between 2 and 6 households (inclusive) do not have a colour television set? (24+4+4=10 marks} You may use Poisson or normal approximation. It is given that @7* = 0.135. Also given that the area under the standard normal curve between z.~ 0 and z = 2.84 is 0.4977.ation of 3.8. What is 3.(b) A population is normally distribute, with a mean of 23.45 and a standard de the probability of each of the following? i) Drawing a random sample of size 10 and obtaining a sample mean of 22 or more Drawing a random sample of size 4 and getting a sample mean of more than 26. It is given that area under a standard normal distribution between z = 0 and given values of z are as follows: for z= 1.21: area = 0.3869; for z= 1.34: area = 0.4099; for z= 0.38: area = 0.1480; for z = 0.67: area = 0.24 [545 = 10 marks} 4. On an examination in statistics 10 students in one class showed a mean grade of 80 with a standard deviation of 8, while 12 students in another class showed a mean grade of 76 with a standard deviation of 10. Using 1% level of significance, determine whether the first group is superior to the second group. It is given that the I percentage point of distribution for 20, 21 and 22 degrees of freedom are respectively 2.528, 2.510 and 2.489 respectively. [20 Marks ] 5. The following table shows brand preferences against gender on the basis of a random sample of size 100 from a population. It is intended to examine possible association between gender and brand preference Brand A | Brand B Men | 30 20 Women | 20 30 ‘At 5% level of significance will you conclude that gender and brand preference are independent? It is given that the tabled value of the Chi-square distribution with rightail area equal to 5% for 1, 2 and 3 degrees of freedom are 3.84, 5.99 and 7.81 respectively. [20 marks}