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Quantitative Methods (CFA530)
• Answer all 79 questions.
• Marks are indicated against each question.
Total Marks : 100
1.
The value of x which satisfies the equation is
x x
x 7
4 8
− = −
(a) 4
(b) 5
(c) 6
(d) 7
(e) 8. (1 mark)
2.
Which of the following is false regarding real numbers?
(a)
( ) a b if and only if b a 0 < − >
(b)
If a b and b c then a c < > <
(c)
( ) ( ) If a b then a c b c < + < +
(d)
( ) ( ) If a b then a b > − < −
(e)
1 1
If 0 a b then 0 .
b a
< < < <
(1 mark)
3.
Ms. Maya requires returns of 20%. Alfa limited is offering a bond promising to pay 9 annual installments of
Rs. 6,000 with the first payment due 1 year from now. How much Ms. Maya is willing to pay for it?
(a) Rs.24,186
(b) Rs.34,681
(c) Rs.44,816
(d) Rs.54,618
(e) Rs.64,861. (1 mark)
4.
The demand function is given by and the total cost function by . Let MR =
Marginal Revenue and MC = Marginal Cost.
For output Q = 45, what are the values of MR and MC?
P 1100 8Q = − C 1200 70Q = +
(a) MR = 340, MC = 70
(b) MR = 350, MC = 70
(c) MR = 360, MC = 50
(d) MR = 370, MC = 70
(e) MR = 380, MC = 70. (2 marks)
5.
What are the roots of the equation
2
5x 10x 15 0? − − =
(a) 5 and – 3
(b) 4 and – 2
(c) 3 and – 1
(d) 2 and – 4
(e) 1 and – 5. (1 mark)
6.
The slope of the line passing through the points (4, 3) and (7, 2) is
(a) – 3
(b)
1
3
−
(c)
1
3
(d) 3
(e) None of the above. (1 mark)
7.
If y = 3x
3
– 2x + 1, then the value of at x = 2 will be equal to
dx
dy
(a) 0
(b) 1
(c) 21
(d) 34
(e) 36. (1 mark)
8.
Find out the sum of the following series:
2 3
1 1 1
S 4 4 4 ...........
2 2 2
     
= + + + ∞
  
\ ¹ \ ¹ \ ¹
(a) 4
(b) 2
(c) 80
(d) 0.25
(e)
2
.
1 −
(1 mark)
9.
t 0
lim
→
2
2
2 4 t
t
− −
=
(a)
1
4
(b)
1
2
(c) 2
(d) 4
(e)
.
2
(1 mark)
10.
What is the value of ?
1 x
f (x), if f (x)
2 x
−
′ =
+
(a)
2
3
(2 x)
−
+
(b)
2
(2 x)
−
+
(c)
2
2
(2 x)
−
+
(d)
3
3
(2 x)
−
+
(e)
.
2
1
(2 x) +
(2 marks)
11.
Differentiate .
2
y = 13x 5x+8 −
(a)
2
26x+5
2 13x 5x+8 −
(b)
2
52x 5
2 13x 5x+8
−
−
(c)
2
26x 5
2 13x 5x
−
−
(d)
2
26x 5
2 13x 5x+8
−
−
(e)
.
2
26x 5
2 x 5x+8
−
−
(1 mark)
12.
The Marketing Manager of United Home Products Ltd., has collected the following data pertaining to the
sales of one of the products of the company in the past few years:
Find out the approximate number of units of the product sold in the year 2003 using interpolation techniques.
Year Sales (thousand units)
2001 14
2002 26
2004 46
2005 57
2006 68
2007 80
(a) 34 (thousand units)
(b) 38 (thousand units)
(c) 44 (thousand units)
(d) 40 (thousand units)
(e) 36 (thousand units). (1 mark)
13.
The variance of the data 8, 12, 14, 16, 18 is 14.8, then the variance of 10, 14, 16, 18 and 20 is
(a) 10.8
(b) 14.8
(c) 16.8
(d) 18.8
(e) 29.6. (1 mark)
14.
The standard deviation and the mean returns of 5 securities A, B, C, D and E are given below.
Which of the above securities is consistent?
Security A B C D E
Mean returns 12 24 18 36 42
Standard deviation 2 3 4 5 6
(a) A
(b) B
(c) C
(d) D
(e) E. (1 mark)
15.
Which of the following is considered as the best measure of dispersion?
(a) Quartile deviation
(b) Mean deviation
(c) Range
(d) Standard deviation
(e) Interquartile range. (1 mark)
16.
Consider the following frequency distribution given below:
The mode of frequency distribution is
Interval Frequency
0 – 10 26
10 – 20 47
20 – 30 33
30 – 40 16
40 – 50 22
(a) 6
(b) 10
(c) 142
(d) 16
(e) 19. (1 mark)
17.
The Environmental Protection Agency took water samples from 10 different locations of the Ganges. These
samples were tested in the laboratory and rated as to the amount of solid particles suspended in each sample.
The results of the testing are given in the table below.
Arrange the data into an array from highest to lowest. And determine the number of samples having pollution
content between 20.0 and 29.9, 30.0 and 39.9.
Sample 1 2 3 4 5 6 7 8 9 10
Pollution
rating
(ppm)
27.2 38.7 64.3 52.8 47.6 23.4 33.9 45.0 56.7 41.1
(a) 2 and 2
(b) 2 and 3
(c) 3 and 4
(d) 0 and 2
(e) 0 and 3. (2 marks)
18.
XYZ company runs a taxi service in a big city. It has its own filling station for fuel. The fuel consumption
figures in kilometers per liter for the sixteen cars owned by the company were compiled as follows:
What is the median fuel consumption?
14.77 16.11 16.11 15.05 15.99 14.91 15.27 16.01
15.75 14.89 16.05 15.22 16.02 15.24 16.11 15.02
(a) 15.51
(b) 15.27
(c) 15.75
(d) 15.15
(e) 15.72. (1 mark)
19.
Rate of change in frequency from one class to the next is best shown in
(a) Raw data
(b) Frequency polygon
(c) Histogram
(d) Data array
(e) None of the above. (1 mark)
20.
In a factory, there are three machines used in the manufacturing of screws. The probability that Machine A
turns out a defective is 0.15, Machine B turns out a defective is 0.1, Machine C turns out a defective is 0.2. A
screw is picked at random and is found to be defective. What is the probability that it was produced by
Machine A?
(a)
1
2
(b)
1
3
(c)
1
4
(d)
1
5
(e)
1
.
6
(1 mark)
21.
Which of the curves has the largest mean?
(a) Curve A
(b) Curve B
(c) Curve C
(d) It will depend on the frequency distribution
(e) It cannot be estimated from the figure. (1 mark)
22.
A movie theater charges Rs.8 for balcony, Rs.6 for first class and Rs.3.50 for second class. If 15% of its
patrons buy balcony tickets, 45% buy first class tickets and the remaining buy second class tickets, how much
would the box office expect to take in per 1000 patrons?
(a) Rs. 17,500
(b) Rs. 5,300
(c) Rs. 4,300
(d) Rs. 5,650
(e) Rs. 2,345. (1 mark)
23.
The board of ABC company is considering some major policy changes that will affect the company’s three
divisions. The management was keen on getting the employees’ opinion before going ahead with the changes.
Meetings were held with groups of employees from the three divisions. The opinions of the employees are
summarized in the table given below.
An employee from one of the groups strongly opposes the policy changes. What is the probability that he is
from the Finance division?
Opinion
Division
Textile Garments Finance
Strongly oppose 2 2 4
Slightly oppose 2 4 3
Neutral 3 3 5
Slightly support 2 3 2
Strongly support 6 3 1
(a) 4/45
(b) 1/4
(c) 4/15
(d) 1/2
(e) 3/4. (1 mark)
24.
If the marginal profit and marginal loss for stocking an additional car by a car dealer are Rs.10,000 and Rs.
2,000 respectively, then the probability of selling an additional car that will justify the stocking of that car
should be at least
(a) 0.1667
(b) 0.2000
(c) 0.2500
(d) 0.5000
(e) 0.6670. (1 mark)
25.
Consider the following profit table.
The expected payoff under perfect information is
Plan
Probability
0.2 0.8
A 10 15
B 12 13
(a) 12.5
(b) 13.4
(c) 13.5
(d) 14.4
(e) 15.0. (1 mark)
26.
Consider the following data about two securities A and B. The returns from the two securities are perfectly
negatively correlated.
We construct a portfolio of the two securities with proportions of A and B being 0.75 and 0.25 respectively.
What is the portfolio risk as measured by its standard deviation?
Particulars Security A Security B
Return (%) 7 or 11 13 or 5
Probability 0.5 0.5
(a) 0.35
(b) 0.50
(c) 0.75
(d) 0.80
(e) 0.95. (2 marks)
27.
The value of a variable X and its probability p is shown below
In a Monte Carlo simulation method, if a random number 37 is generated between the interval 1 – 100, the
corresponding value of variable X will be
X 5.0 10.0 18.0 20.0
p 0.2
0.5
0.1
0.2
(a) 5
(b) 10
(c) 15
(d) 18
(e) 9. (1 mark)
28.
An employer categorizes job applicants according to whether they have a University degree and whether they
have had relevant work experience. In a large group of applicants, 70 percent have a degree with or without
any work experience and 60 percent have work experience with or without a degree. 50 percent of the
applicants have both a degree and relevant work experience.
What is the probability that a randomly selected job applicant has either a degree or relevant work experience?
(a) 0.4
(b) 0.7
(c) 0.8
(d) 0.2
(e) 0.6. (1 mark)
29.
A portfolio manager A has been able to beat the market in four out of five periods, portfolio manager B has
been able to beat the market in three out of four periods and portfolio manager C has been able to beat the
market in two out of three periods. Assuming that the past performance of all the three portfolio managers will
be repeated in future also, what is the probability of all the portfolio managers A, B and C beating the market
index?
(a)
1
5
(b)
2
5
(c)
4
5
(d)
3
5
(e)
1
.
3
(1 mark)
30.
Box one contains 1 white and 999 red balls. Box two contains 1 red and 999 white balls. A ball is picked from
a randomly selected box. If the ball is red, what is the probability that it came from Box one?
(a)
1
1, 000
(b)
999
1, 000
(c)
1
10
(d)
9
10
(e)
1
.
2
(2 marks)
31.
In a test of ANOVA, the estimate of the population variance based on the variance among the sample means is
6.724 and the estimate of the population variance based on the variance within samples is 2.248. What is the
Fratio for this test?
(a) 0.3344
(b) 0.6666
(c) 2.9911
(d) 4.4766
(e) 8.9722. (1 mark)
32.
The possible number of samples of size 5 taken from a population of 10 elements is
(a) 2
(b) 5
(c) 10
(d) 252
(e) 3628800. (1 mark)
33.
You are a project manager for a construction project. After analyzing the requirements for completing the
project, you find that it would take an average of 80 weeks to finish. The completion time is normally
distributed with a standard deviation of 9 weeks. The probability of completing the project in 95 weeks or less
is:
(a) 0.4525
(b) 0.0475
(c) 0.9525
(d) 0.0952
(e) Cannot be determined from the information given. (1 mark)
34.
In a sampling technique, the first element is randomly selected and thereafter all other elements are selected
based on a predetermined plan. This sampling technique can be described as
(a) Simple random sampling
(b) Stratified random sampling
(c) Systematic random sampling
(d) Cluster sampling
(e) Judgmental sampling. (1 mark)
35.
X
1
is a normal variable with mean 25 and standard deviation 3. X
2
is another normal variable with mean 50
and standard deviation 4. If X
1
and X
2
are independent then P(X
2
– X
1
30) would equal to
≥
(a) P(Z 10/25)
≥
(b) P(Z 10/5)
≥
(c) P(Z 1)
≥
(d) P(Z 7)
≥
(e) P(Z 10).
≥
(1 mark)
36.
A machine is producing ball bearings with diameter of 0.5 inches. It is known that the standard deviation of
the ball bearings is 0.005 inches. A sample of 100 ball bearings is selected and their average diameter is found
to be 0.498 inches.
The standard error of the mean is
(a) 0.0001
(b) 0.0002
(c) 0.0003
(d) 0.0004
(e) 0.0005. (1 mark)
37.
A random sample of size 9 is selected from a symmetrical population with a unique mode. The sample mean
and standard deviation are 150 and 25 respectively. What is the 95% confidence interval in which the
populations mean (µ) will lie?
(a) (120.78, 149.22)
(b) (125.78, 159.22)
(c) (130.78, 169.22)
(d) (135.78, 179.22)
(e) (140.78, 189.22). (2 marks)
38.
If a hypothesis is tested at a significance level of 10% then it means that
(a) There is 10% probability that the null hypothesis will be rejected though it is true
(b) There is 10% probability that the null hypothesis will be false
(c) There is 10% probability that the null hypothesis will be true
(d) There is 90% probability that the alternative hypothesis will be false
(e) There is 90% probability that the alternative hypothesis will be true.
(1 mark)
39.
A sample analysis of examination results of 200 MBAs was made. It was found that 46 students have failed,
68 secured a third division, 62 secured a second division and rest were placed in the first division. An analyst
wants to test whether these figures are commensurate with the general examination results which is in the ratio
of 2: 3: 3: 2, for the various categories (in the same order as above) respectively. Which of the following
conclusions can be drawn from the given data, at a significance level of 5%?
(a) There is no difference between the MBA results and general examination results
(b) There is a significant difference between the MBA results and general examination results
(c) The number of first divisions in MBA results are more than the general examinations results
(d) The number of failed students are less in the MBA results than the general examinations results
(e) No conclusion can be drawn, as the data is insufficient. (2 marks)
40.
In statistics, the collection of all the elements under study is called as
(a) Domain
(b) Population
(c) Range
(d) Central pool
(e) Collection. (1 mark)
41.
Each day, the Indian Customs Service has historically intercepted about Rs. 28 million in contraband goods
being smuggled into the country, with a standard deviation of Rs. 16 million per day. On 64 randomly chosen
days in 1992, the Indian Customs Service intercepted an average of Rs. 30.3 million in contraband goods. The
Customs Commissioner wants to test at a significance level of 5% whether the smuggling has increased above
its historic level.
What is the value of the appropriate test statistic for the above test?
(a) 0.95
(b) 1.15
(c) 1.35
(d) 1.65
(e) 1.95. (1 mark)
42.
Which of the following statement(s) is/are true regarding estimation?
I. If an estimate of a population parameter is given by a single value, then the estimate is called an interval
estimate.
II. If an estimate of a population parameter is given by two distinct numbers between which the parameter
may be considered to lie, then the estimate is called a point estimate.
III. The interval estimate indicates the accuracy (or precision) of an estimate.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above. (1 mark)
43.
Consider the following sample of paired observations:
The covariance between X and Y is
X 3 4 7 6 5
Y 15 12 10 11 13
(a) 2.75
−
(b) 2.20
−
(c) 1.75
−
(d) 1.75
(e) 3.75. (2 marks)
44.
The following data pertains to 3 variables – X
1
, X
2
and X
3
. Where X
1
is the dependent variable and X
2
and X
3
are independent variables.
r
12
= 0.8196; r
13
= 0.7698; r
23
= 0.7984.
What percentage of the variation in X
1
can be explained by the multiple regression equation in terms of X
2
and X
3
?
(a) 70.80
(b) 65.37
(c) 61.21
(d) 54.75
(e) 50.20. (2 marks)
45.
In a multiple regression with n observations and k independent variables, the standard error of estimate is
calculated using the number of degrees of freedom as
(a) n – 2
(b) n – k
(c) n – k –1
(d) n – k +1
(e) n + k –1. (1 mark)
46.
A regression relationship has been established between two variables, X and Y, in which X is the independent
variable. The coefficient of correlation between X and Y is 0.60 approximately. What percentage of the
variation in Y is not explained by the regression relationship?
(a) 0%
(b) 19%
(c) 34%
(d) 64%
(e) 81%. (1 mark)
47.
For a regression relationship, the ratio of the regression sum of squares to the error sum of squares is 3 : 2.
What is the coefficient of determination for the regression relationship?
(a) 0.40
(b) 0.16
(c) 0.36
(d) 0.60
(e) 0.81. (1 mark)
48.
For a simple regression equation the following results were obtained:
If X = 10,
If X = 15,
Where X is the independent variable and is the estimated value of the dependent
variable Y.
Number of observations = 6
What is the value of ?
ˆ
Y 55 =
ˆ
Y 75 =
ˆ
Y
X 60 =
∑
2
X 645 =
∑
XY
∑
(a) 900
(b) 225
(c) 3,480
(d) 2,025
(e) 3,025. (2 marks)
49.
A multiple regression relationship contains two independent variables. The standard error of estimate is 4.8.
Error sum of squares = 576.
What is the number of data points?
(a) 24
(b) 25
(c) 26
(d) 27
(e) 28. (2 marks)
50.
Ten companies are ranked on the basis of their profits (Rs. Crore) and working capital (Rs. Crore). The data
are shown in the table given below.
Calculate the Rank correlation coefficient(R) to get a better measure of the strength of association between
them.
Company
Profit (x
i
)
Working
Capital (y
i
)
1 5 4
2 2 1
3 7 10
4 1 3
5 6 9
6 9 7
7 3 5
8 4 6
9 10 8
10 8 2
(a) 0.17
(b) 0.25
(c) 0.54
(d) 0.78
(e) 0.46. (2 marks)
51.
In which of the following conditions will the error sum of squares for a simple regression relationship be zero?
(a) Correlation coefficient = 0
(b) – 1 < Correlation coefficient < 0
(c) 0 < Correlation coefficient < 1
(d) Correlation coefficient = 0.75
(e)
=1.
Correlation coefficient
(1 mark)
52.
In a pchart, if n = 60 and = 0.33, the value of Upper Control Limit (UCL) will be given by
p
(a) 0.347
(b) 0.368
(c) 0.391
(d) 0.451
(e) 0.512. (1 mark)
53.
Consider the data given below.
The expected frequency for the cell (white collar, neutral) is
Particulars
Attitude Towards Social
Legislation
Occupation Support Neutral Oppose
Blue collar worker 25 21 30
White collar worker 26 30 28
Professionals 29 25 30
(a) 26.16
(b) 28.54
(c) 30.21
(d) 31.24
(e) 32.64. (1 mark)
54.
Consider the following data regarding the sales projections of a new product.
The degrees of freedom in the above data is
State of Economy
Sales (Rs. crore)
Low Promotion Moderate Promotion High Promotion
Boom 29 33 48
Moderate Growth 25 28 35
Slow Growth 22 26 29
Recession 15 20 22
(a) 3
(b) 4
(c) 5
(d) 6
(e) None of the above. (1 mark)
55.
Each of 20 lots of rubber belts contains 2000 rubber belts. The numbers of defective rubber belts in these lots
are as follows:
The value of central line for the pchart for the fraction of defectives is
405 418 324 332 292 340 282 300 320 296
397 434 294 324 220 460 258 226 460 190
(a) 0.1621
(b) 0.1632
(c) 0.1643
(d) 0.1652
(e) 0.1662. (1 mark)
56.
A study compared the effects of four 1month pointofpurchase promotions on sales. The unit sales for five
stores using all four promotions in different months follow:
A test of ANOVA has to be performed.
What is the estimated population variance using the variance between the sample means?
Free samples 78 87 81 89 85
Onepack gift 94 91 87 90 88
Rupees off 74 78 70 82 76
Refund by mail 79 83 78 69 81
(a) 194
(b) 196
(c) 198
(d) 200
(e) 202.
(2 marks)
57.
A production manager feels that the output rate of experienced employees is surely greater than that of new
employees, but he does not expect the variability in output rate to differ for the two groups. In previous output
studies, it has been shown that the average output per hour for new employees at this particular type of work is
20 units with a variance of 56 units squared. For a sample of 25 employees with 5 years’ experience, the
average output per hour for this same type of work is 30 units, with a variance of 28 units squared. The
manager wants to test whether the variability in output differs at the two experience levels.
Find the value of the test statistic for the above test.
(a) 8
(b) 9
(c) 10
(d) 11
(e) 12. (2 marks)
58.
Three training methods were compared to see if they led to similar productivity after training. The following
are productivity measures for individuals trained by each method.
It is to be tested whether the three training methods lead to the same mean productivity.
What is the critical value for the appropriate statistical test at a significance level of 5%?
Method 1 46 41 51 39 53
Method 2 59 43 47 51 40
Method 3 42 38 45 42 53
(a) 2.87
(b) 3.89
(c) 4.43
(d) 4.77
(e) 5.29. (2 marks)
59.
The composite price index of a basket of goods was 310 in 2006 and 334 in 2008. If both the indices were
computed from a base of 100 in 2000, how much did the general price level rise between 2006 and 2008?
(a) 5.18%
(b) 6.56%
(c) 7.74%
(d) 17.86%
(e) 19.52%. (1 mark)
60.
An hotelier found that the total number of bookings during 2007 was 10,000. The seasonal index during the
second quarter was found to be 155. Then the number of rooms that will be booked during second quarter in
2008 will be
(a) 8,735
(b) 7,853
(c) 5,837
(d) 3,875
(e) 2,222. (1 mark)
61.
The quality manager of the bottling plant of a cola major wants to ensure that the quantity of soft drinks in the
bottles is as printed on the label of the bottle. He takes the samples of ten bottles every day and plots a control
chart for the mean quantity of beverage in the bottle. Towards the end of the week he observes that the
observations are within the control limits but there are jumps in the level around which the observations vary.
Which of the following inferences is most appropriate?
(a) The variations have been reduced to a great extent
(b) The means of two different populations are being observed
(c) The process mean has been shifting
(d) The process is out of control
(e) None of the above. (1 mark)
62.
A food grains merchant wants to know the overall change in prices of the commodities he deals in. He
provides the following information:
Commodity
Year
2006 2008
Price Quantity Price Quantity
What is Paasche’s price index for the year 2008 using 2006 as the base year?
(Rs./Kg.) (Kg.) (Rs./Kg.) (Kg.)
Wheat 7.50 5000 10.25 4800
Rice 10.00 6000 14.00 5500
Pulses 25.00 3000 28.00 3500
Sugar 10.60 3000 14.50 2400
Salt 2.60 500 4.50 600
(a) 130.68
(b) 129.57
(c) 128.46
(d) 127.35
(e) 126.24. (2 marks)
63.
The following index values pertain to a year:
Fisher’s ideal price index = 125.50
Laspeyres price index = 122.00
Paasche’s price index for the year is approximately
(a) 102.90
(b) 115.50
(c) 120.50
(d) 127.20
(e) 129.10. (1 mark)
64.
Consider following daily price changes of a share.
Identify number of runs.
Day 0 1 2 3 4 5 6 7 8
Price 101.1 101.05 101.5 105 105.6 106.5 105.4 110 109
(a) 3
(b) 4
(c) 5
(d) 6
(e) 7.
(1 mark)
65.
Construct index number of prices for the year 2008 from the following data by applying MarshallEdgeworth
method. The year 2006 is base year.
Commodity
2006 2008
Prices
(Rs.)
Quantities
(Units)
Price
(Rs.)
Quantities
(Units)
A 2 8 4 6
B 5 10 6 5
C 4 14 5 10
D 2 19 2 13
(a) 121.5
(b) 122.5
(c) 123.5
(d) 124.5
(e) 125.5. (2 marks)
66.
What is the moving average of order three associated with 2 of the following data?
4 5 8 6 2 7 3 1 9
(a) 5.667
(b) 6.333
(c) 5.333
(d) 5.000
(e) 4.000. (1 mark)
67.
The following details are available with regard to a basket of goods:
1 0
0 1
PQ 20, 000
P Q 10, 300
∑ =
∑ =
Value index calculated on the basis of the same basket of goods = 81.25
What is Fisher’s ideal price index?
(a) 51.505
(b) 154.605
(c) 123.105
(d) 194.175
(e) 125.605. (1 mark)
68.
Which of the following statements is/are true regarding Control Charts?
I. and R charts are deal with quantitative variables.
II. P charts deal with qualitative factors.
III. If the plotted points are within the lower and the upper control limits and there is no increasing trend or
decreasing trend or cyclic fluctuations, then we can conclude that the process is out of control.
X
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above. (1 mark)
69.
The advertisement expenditure and the sales of Magna Products Ltd., for the last six years, are given below:
An estimating equation to predict sales from advertisement expenditure has to be formulated using the simple
regression technique.
If the advertisement expenditure is Rs.78 lakhs, then the estimated sales will be
Advertisement expenditure (Rs. in lakhs) 37 63 60 88 80 73
Sales (Rs. in lakhs) 480 540 590 870 630 790
(a) Rs.601.3547 lakhs
(b) Rs.650.2467 lakhs
(c) Rs.727.3627 lakhs
(d) Rs.752.6247 lakhs
(e) Rs.787.2657 lakhs. (2 marks)
70.
Which of the following statements is/are true regarding Dual problem?
I. The solution to a dual problem provides all essential information about the solution to the primal
problem.
II. It may be easier to solve the Dual problem rather than the primal problem as when the primal involves
few variables but many constraints.
III. For every linear programming formulation there exist too many Dual formulations.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above. (1 mark)
71.
The vertices of the feasible region for a profit maximizing linear programming problem is bounded by the
vertices (0, 0), (0, 12), (15, 0) and (12, 6). The profit function is Z = 8X + 6Y. The maximum value of Z is
(a) 70
(b) 72
(c) 90
(d) 120
(e) 132. (1 mark)
72.
Which of the following is/are false?
I. By observing the values in (Zj – Cj) row, one can know whether the optimum solution has reached or
not.
II. The profit contributions of slack variables are greater than zero.
III. The row containing the pivot element should be compulsorily divided by it.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) Both (II) and (III) above. (1 mark)
73.
A company manufactures three types of car, A, B and C in two factories; an engine plant E and a body factory
F. The net profit on a car of type A is Rs.55,000, on type B it is Rs.60,000 and on type C it is Rs.72,500. There
are 10,120 labour units (a labour unit is approximately “one manhour”) available in E and 11,000 labour units
in factory F each month and the number of labour units, needed to build the various products is given in the
following table:
This is a problem of maximizing the profit subject to these constraints as a linear programming problem.
At optimal solution how many type B car would be produced by the manufacturer?
Car Type Engine Body
A 8 8
B 8 9
C 9 11
(a) Zero
(b) 120
(c) 240
(d) 440
(e) 770. (2 marks)
74.
If the objective is to maximize f(x, y)=143x+60y
Subject to the following constraints:
The value of x at the optimum solution would be
100 x y + ≤
120 210 15000 x y + ≤
110 30 4000 x y + ≤
, 0 x y ≥
(a) 20
(b) 50
(c) 60
(d) 100
(e) 110. (2 marks)
75.
In which of the following conditions, the graphical solution to a linear programming problem will not have
multiple optimal solutions?
(a) One of the edges of the feasible region coincides with the horizontal axis
(b) One of the edges of the feasible region is parallel to the horizontal axis
(c) One of the edges of the feasible region coincides with the vertical axis
(d) One of the edges of the feasible region is parallel to the vertical axis
(e) None of the edges of the feasible region is parallel to the objective function. (1 mark)
76.
What is the dual of the LPP equation?
Minimize P = 12W
1
+ 20W
2
Subject to: W
1
+ W
2
≥ 2
3W
1
+ W
2
≥ 6
2W
1
+ W
2
≥ 4
W
1
, W
2
≥ 0
(a) Maximize Z = 2X
1
+ 6X
2
+ 4X
3
Subject to: X
1
+ 3X
2
+ 2X
3
< 12
X
1
+ X
2
+ X
3
< 20
X
1
, X
2
, X
3
> 0
(b) Maximize Z = X
1
+ 3X
2
+ 2X
3
Subject to: 3X
1
+ 2X
2
+ 1X
3
12
X
1
+ X
2
+ X
3
< 20
X
1
, X
2
, X
3
> 0
≥
(c) Maximize Z = 2X
1
+ 6X
2
+ 4X
3
Subject to: 3X
1
+ 1X
2
+ 2X
3
< 12
X
1
+ X
2
+ X
3
20
≥
END OF QUESTION PAPER
X
1
, X
2
, X
3
> 0
(d) Maximize Z = 2X
1
+ 6X
2
+ 4X
3
Subject to: X
1
+ 3X
2
+ 2X
3
20
X
1
+ X
2
+ X
3
< 12
X
1
, X
2
, X
3
> 0
≥
(e) Maximize Z = X
1
+ 6X
2
+ 4X
3
Subject to: X
1
+ 3X
2
+ 2X
3
< 12
X
1
+ X
2
+ X
3
20
X
1
, X
2
, X
3
> 0.
≥
(2 marks)
77.
Which of the following statements is false?
(a) JAVA can run on any operating system
(b) JAVA can be downloaded straight from internet
(c) WWW is a network of networks
(d) Modem is a piece of equipment that connects a computer to a data network
(e) Internet is a global network of computers. (1 mark)
78.
Which of the following is/are basic characteristics favoring the usage of computers?
I. Volume.
II. Speed.
III. Accuracy.
IV. Complexity.
(a) Only(II) above
(b) Only (III) above
(c) Both (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above. (1 mark)
79.
Which of the following statements is false regarding rules while constructing a flow chart?
(a) The direction of flow should usually be from the top to the bottom of the page and from the left
to the right
(b) Lines should never cross
(c) Arrowheads should be used to show the direction of the flow, especially, if it is other than top
to bottom or left to right
(d) The symbols should be of a fixed size
(e) Every flow chart should begin with a ‘Start’ symbol and end with a ‘Stop’ symbol. (1 mark)
Suggested Answers
Quantitative Methods (CFA530)
ANSWER REASON
1. E
Given that .
x x
x 7
4 8
− = −
x x
x 7
4 8
8x 4x
x 7
32
4x
x 7
32
x 8x 56
7x 56
x 8.
⇒ − = −
−
= −
= −
= −
=
⇒ =
2. B option(a)
To prove above statement, consider , now we have to prove
Now consider , now we have to prove .
Hence . Similarly option(c), option(d) and option(e) are correct.
option(b)
From the above relationships we cannot say that .
Hence option (b) is false.
( ) a b if and only if b a 0 < − >
a b <
( ) b a 0 − >
( )
If a b,
0 b a
b a 0
<
⇒ < −
⇒ − >
( ) b a 0 − >
a b <
( ) If b a 0
0 b a
a b
− >
⇒ < −
⇒ <
( ) a b if and only if b a 0 < − >
If a b and b c then a c < > <
Given that a b and b c
a b and c b
< >
⇒ < <
a c <
3. A PVIFA(9, 20) = 4.0310
Thus, The amount Ms. Maya is willing to pay
6000 4.0310
24,186.
= ×
=
4. E
Therefore MR = 380 and MC = 70.
( )
2
P 1100 8Q
R P Q
1100 8Q Q
R 1100Q 8Q
R
MR 1100 16Q
Q
When Q 45, MR 380.
C 1200 70Q
C
MC 70
Q
When Q 45, MC 70.
= −
= ×
= − ×
= −
∂
= = −
∂
= =
= +
∂
= =
∂
= =
5. C
In the given quadratic equation a = 5, b = –10 and c = –15.
We now substitute these values in the formula.
2
5x 10x 15 0 − − =
( )
2
b b 4ac
x
2a
10 100 4 5 15
x
10
10 20
x
10
30 10
x and x
10 10
x 3 and x 1.
− ± −
=
± − × × −
=
±
=
−
= =
= = −
6. B Y = a + bX, where a is the Yintercept and b is the slope of the line.
At point (4, 3), 3 = a + b(4)
At point (7, 2), 2 = a + b(7)
Therefore, 3b = –1 or b = –1/3.
7. D
y = 3x
3
– 2x + 1
If x = 2, then = 9(2)
2
– 2 = 36 – 2 = 34.
2 dy
= 9x 2
dx
−
dy/dx
8. A The given series is of the form,
a + ar + ar
2
+ ar
3
+ . . . . . . . α
The sum of a series of this form,
S = a/1–r
a = 4(1/2)
r = 1/2
∴ S = =>
=> 2 x 2
=> 4.
4(1/ 2)
1 1/ 2 −
2
1/ 2
9. A
=
=
2
2
t 0
2 4 t
lim
t
→
− −
2 2
t 0 2 2
2 4 t 2 4 t
lim
t 2 4 t
→
   
+ − − −
 
\ ¹ \ ¹
 
+ −

\ ¹
t 0
lim
→
( )
2
2 2
4 4 t
t 2 4 t
− −
 
+ −

\ ¹
=
=
= .
t 0
lim
→
2
2 2
t
t 2 4 t
 
+ −

\ ¹
t 0
lim
→
2
1
2 4 t + −
1 1
2 2 4
=
+
10. A
Given that
If
1 x
f (x) .
2 x
−
=
+
( )
( )
( )
( )
( ) ( ) ( ) ( )
( ) ( )
2
g x g' x h x g x h' x
f x , then f ' x
h x
h ' x
−
= =
( )
( )( ) ( )
( )
( )
( )
2
2
2
1 2 x 1 x 1
f ' x
2 x
2 x 1 x
2 x
3
.
2 x
− + − − ×
=
+
− − − +
=
+
−
=
+
11. D
(The outer layer is “the square root” and the inner layer is .
Differentiate “the square root” first, leaving unchanged. Then differentiate
Thus,
=
=
=
= .
2
(13x 5x+8) −
2
(13x 5x+8) −
2
(13x 5x+8) −
{ }
1
2 2
2
D 13x 5x+8 = D (13x 5x+8) − −
1
1
2 2
2
1
(13x 5x +8) D(13x 5x+8)
2
−
 
− −

\ ¹
1
2
2
1
(13x 5x 8) (26x 5)
2
−
 
− + −

\ ¹
1
2
2
26x 5
2(13x 5x 8)
−
− +
2
26x 5
2 13x 5x 8
−
− +
12. E The sales figure for 2003
= 26 +
= 26 + 10
= 36 (thousand units).
46 26
(2004 2003)
2004 2002
−
−
−
13. B The value of variance remains the same if in a series each of the observation is increased or decreased by a
constant quantity.
Here each of the observation is increased by 2.
Original series : 8, 12, 14, 16, 18
New series: 8 + 2 = 10, 12 + 2 = 14, 14 + 2 = 16, 16 + 2 = 18 and 18 + 2 = 20.
Therefore variance remains same. That is 14.8.
14. B
Coefficient of Variation =
Standard Deviation
100
Mean
×
Security A B C D E
Here minimum coefficient of variation is associated to security B.
Hence security B is consistent.
Mean returns 12 24 18 36 42
Standard deviation 2 3 4 5 6
Coefficient of Variation 16.6667 12.5 22.2222 13.8889 14.2857
15. D Standard deviation is regarded as best measure of dispersion.
16. D Here largest frequency is 47 and it lies in the class interval 10 – 20. Therefore modal class is 10 – 20
Mode =
=
= 10 + 6 = 16.
W x
f f 2f
) f (f
Lm
2 1
1
o
− −
−
+
10 x
33) 26 (2(47)
26 47
10
− −
−
+
17. A
Sample Pollution rating (PPM)
3 64.3
9 56.7
4 52.8
5 47.6
8 45.0
10 41.1
2 38.7
7 33.9
1 27.2
6 23.4
Class of pollution rating Number of samples
20.0 – 29.9 2
30.0 – 39.9 2
40.0 – 49.9 3
50.0 – 59.9 2
60.0 – 69.9 1
Total 10
18. A We first arrange the data in an ascending order, row wise.
The median is the average of the eighth and ninth data points.
Median = = 15.51.
14.77 14.89 14.91 15.02 15.05 15.22 15.24 15.27
15.75 15.99 16.01 16.02 16.05 16.11 16.11 16.11
2
75 . 15 27 . 15 +
19. B Raw data is information before it is processed or analyzed. In data array, the data points are arranged in an
ascending or descending order. We observe that while the histogram indicates the fluctuations in
frequencies
from class to class, it does not clearly reveal the rate of change in frequency from one class to the next.
Hence the answer is (b).
20. B Let E be the event that the screw is defective.
Let A be the event that the screw is produced on machine A.
Let B be the event that the screw is produced on machine B.
Let C be the event that the screw is produced on machine C.
Required probability = .
0.15 1
P(E/ A)
0.15 0.1 0.2 3
= =
+ +
21. C Here three curves are on same scale and Curve A mean is less than Curve B mean and Curve B mean is
less than Curve C mean.
Therefore Curve C has larger mean than Curve A and Curve B.
22. B [8(0.15) + 6(0.45) + 3.5(0.40)] x1000 = Rs.5,300
23. D P(F/STO) = P(F and STO)/P(STO).
P(F and STO) = P(F) . P(STO/F) = 15/45 . 4/15
P(STO) = 8/45
Thus, P(F/STO) = 15/45 x 4/15 x 45/8 = 1/2.
24. A
P
*
= ML/(ML + MP) = 2000/(10000 + 2000) = 2000/12000 = 1/6 = 0.1667.
25. D The expected payoff under perfect information = 12(0.2) + 15(0.8) = 14.4. (The sum products of
probability and the maximum profit in each column).
26. B Estimated Return on Security A
= 0.5(7) + 0.5(11) = 9
Estimated Return on Security B
= 0.5(13) + 0.5(5) = 9
= 0.5(7 – 9)
2
+ 0.5(11 – 9)
2
= 4;
then = = 2
= 0.5(13 – 9)
2
+ 0.5(5 – 9)
2
= 16;
Then = = 4.
Portfolio Risk =
=
= = 0.5.
Where, Cov
(A,B)
= 0.5(7 – 9) (13 – 9) + 0.5 (11 – 9)(5 – 9) = –8.
2
A
σ
A
σ
4
2
B
σ
B
σ
16
2 2 2 2
A A B B A B (A,B)
X σ X σ 2X X Cov + +
) 8 )( 25 . 0 )( 75 . 0 ( 2 ) 16 ( ) 25 . 0 ( ) 4 ( (0.75)
2 2
− + +
0.25
27. B
Since the random number generated was 37 (which falls in between 20 – 69), the value of X in this run is
10.
X Probability Cumulative
Probability
Random numbers
allotted
5 0.2 0.20 00 – 19
10 0.5 0.70 20 – 69
18 0.1 0.80 70 – 79
20 0.2 1.00 80 – 99
28. C Let the event of having a degree be denoted by D and let the event of having relevant work experience be
denoted by WE.
We have, P(D) = 0.7, P(WE) = 0.6
P(D and WE) = 0.5
The required probability is
P(D or WE) = P(D) + P(WE) – P(D and WE)
= 0.7 + 0.6 – 0.5 = 0.8.
29. B Let P(A), P(B) and P(C) be the probabilities of portfolio managers A, B and C to beat the market.
P(A) = 4/5
P(B) = 3/4
P(C) = 2/3
P(ABC) = .
5
2
3
2
x
4
3
x
5
4
=
30. B
Let A be the event that a ball picked is red and A
i
be the event that i
th
box is selected (i = 1, 2)
and
Hence, by Baye’s theorem
1 2
999 1
P(A/ A ) and P(A/ A )
1, 000 1, 000
= =
i
1
P(A ) .
2
=
Hence, the required probability is
1 1
1
2
i i
i 1
P(A ) . P(A/ A )
P(A / A)
P(A/ A ) P(A )
=
=
∑
1 999
x
999 2 1, 000
.
1, 000 999 1 1
1, 000 1, 000 2
= =
 
+

\ ¹
999
.
1, 000
31. C
F –ratio =
=
Estimate based on the variance among sample means
Estimate based on the variances within the samples
6.724
2.9911.
2.248
=
32. D
10
C
5
= 10!/[(10 – 5!) 5!] = [10 x 9 x 8 x 7 x 6]/[5 x 4 x 3 x 2 x 1] = 252.
33. C
z = (x – µ)/σ
z = (95 – 80)/9 = 1.67; the corresponding value for zscore 1.67 is equal to 0.4525 (see z table). Since this
is a right
tailed test, in addition to the above area we have to consider the total area of left hand side, which is equal
to 0.5.
Thus, P (0 < z < 95) = 0.4525 + 0.5 = 0.9525.
34. C In systematic sampling each element among first k elements (k < n) has an equal chance of being selected,
but each
sample does not have the same chance of being selected. Here, the first element of the population is
randomly selected.
But thereafter the elements are selected according to a systematic plan.
35. C P(X
2
– X
1
> 30)
= P(Z > 1).


¹

\

−
− −
≥ =
) X (X sd
) X (X mean 30
Z P
1 2
1 2



¹

\

+
−
≥ =
2 2
3 4
25 30
Z P
36. E
Given that standard deviation of the population, σ = 0.005 inches. The sample size, n = 100
The standard error of mean
0.005
0.0005.
100
x
n
σ
σ = = =
37. C
Here, = 150
s = 25
n = 9
Degrees of freedom = n – 1 = 9 1=8
If we refer to the t table we see that for 8 degrees of freedom, the area in both tails combined is 0.5 or 5%,
when t = 2.306.
Hence, area under the curve between
So, the 95% confidence interval is
Hence, we are 90% confident that the population mean lies in the interval 130.78 to 169.22.
X
−
s s
X t and X t is 95% when t = 2.306.
n n
   
− +
 
\ ¹ \ ¹
25 25
150 2.306 to 150 2.306 .
9 9
− × + ×
38. A If a hypothesis is tested at a 10% significance level then, it means that there is a 10% probability that the
null hypothesis will be rejected though it is true.
b, c, d & e are incorrect interpretations of the significance level.
39. B This is a chisquare test of goodness of fit.
Let us take the null hypothesis that there is no difference in the MBA results and general examinations
results.
On the basis of ratio 2: 3: 3: 2, the expected number of students failing, getting third division, second
division, and first division,
should be 40, 60, 60 and 40 respectively.
The following table is generated for observed and expected frequencies:
The value of Chi square statistic, χ2 = = 8.434
The table value of chisquare for 4 – 1 = 3 degrees of freedom at 5% level of significance is 7.815. The
calculated value of
chisquare is greater than the table value. The null hypothesis is rejected. Hence it can be included that the
MBA
results are not commensurate with the general examination results (i.e., the MBA results are different from
general examination results).
Category
Observed
frequency (f
o
)
Expected
frequency (f
e
)
(f
o
–f
e
)
2
/ f
e
Failed 46 40 0.900
Third Division 68 60 1.067
Second Division 62 60 0.067
First Division 24 40 6.400
2
o
(f fe)
fe
−
∑
40. B In statistics, the collection of all the elements under study is called population.
41. B The sample size is large and population standard deviation is known, hence we use normal distribution to
test this hypothesis.
The test statistic z =
30.3 28 2.3
1.15.
2
/ 16 / 64
−µ −
= = =
σ
x
n
42. C Only given statement III is true.
Statements (I) and (II) are false. Since correct statements are
If an estimate of a population parameter is given by a single value, then the estimate is called a Point
estimate.
If an estimate of a population parameter is given by two distinct numbers between which the parameter
may be considered to lie, then the estimate is called an interval estimate.
So option (c) is correct.
43. A For a paired sample {X,Y}
Here n=5, ∑X=25, ∑Y=61
and
( )( )
XY
X X Y Y
Cov
n 1
− −
=
−
∑
X 5, Y 12.2 = =
( )( )
X X Y Y 11 − − = −
∑
XY
11 11
Cov 2.75
5 1 4
− −
∴ = = = −
−
44. A
R
1.23
=
=
=
= (0.8414)
2
=0.7080.
Therefore 70.80 percentage of the variation in X
1
can be explained by the multiple regression equation in
terms of X
2
and X
3
.
2 2 2
12 13 12 23 13 23
(r r 2r r r )/[1 r ] + − −
2 2 2
[(0.8196) (0.7698) 2(0.8196) (0.7698) (0.7984)]/ [(1 (0.7984) ] + − −
2
0.2567 0.2567
0.8414.
0.3626 1 (0.7984)
= =
−
2
1.23
R
45. C (a) This is a wrong answer. The standard error of the estimate is not calculated using the number of
degrees of freedom as n – 2.
(b) This is a wrong answer. The standard error of the estimate is not calculated using the number of
degrees of freedom as n – k.
(c) This is the right answer. In a multiple regression with n number of observations and k independent
variables, the standard error of the estimate is calculated using the number of degrees of freedom as n
– k –1.
(d) This is a wrong answer. The standard error of the estimate is not calculated using the number of
degrees of freedom as n – k +1.
(e) This is a wrong answer. The standard error of the estimate is not calculated using the number of
degrees of freedom as n + k –1.
46. D
Explained variation is given by r
2
= (0.60)
2
= 0.36 and hence the unexplained variation is given by = 1 –
0.36 = 0.64 = 64%.
47. D
Coefficient of determination =
=
RSS RSS
TSS ESS RSS
=
+
RSS 3
1.5
ESS 2
0.60
ESS RSS 3 2.5
1
ESS ESS 2
= = =
+ +
48. C A simple regression equation is of the form:
Given:
If X = 15, = 75 ∴ 75 = a + 15b………(A)
If X = 10, = 55 ∴55 = a + 10b ……..(B)
Subtracting (A) from (B) we get:
(75  55) = (15  10)b
or 20 = 5b
or b =
Putting the values of b in (B):
55 = a + 10 × 4 = a + 40
or a = 55 – 40 = 15
∴ =15 + 4X
Now, a =
∴
b = or 4 = or 4 =
or .
ˆ
Y a bX = +
ˆ
Y
ˆ
Y
20
4
5
=
ˆ
Y
X
Y bX Y b
n
 
− = −


\ ¹
∑
X
60
Y a b 15 4 55
n 6
 
 
= + = + = 


\ ¹
\ ¹
∑
2
2
XY nXY
X nX
−
−
∑
∑
( )
2
60
XY 6 55
6
60
645 6
6
 
−

\ ¹
 
−

\ ¹
∑
XY 3300
45
−
∑
( ) XY 4 45 3300 3480 = × + =
∑
49. E In multiple regression relationship:
Standard error of estimate,
Given : ESS = 576
n = ?
k = 2
s
e
= 4.8
( )
2
e
ˆ
Y Y
ESS
s
n k 1 n k 1
−
= =
− − − −
∑
∴4.8 =
∴
or
or n =
ESS
n 2 1 − −
ESS
23.04
n 3
=
−
576
23.04
n 3
=
−
576
3 28.
23.04
+ =
50. C
Here n = 10 and .
The rank correlation coefficient is given by
2
i
d 76 =
∑
Company Profit (x
i
) Working capital (y
i
) d
i
= x
i
– y
i
2
i
d
1 5 4 1 1
2 2 1 1 1
3 7 10 –3 9
4 1 3 –2 4
5 6 9 –3 9
6 9 7 2 4
7 3 5 –2 4
8 4 6 –2 4
9 10 8 2 4
10 8 2 6 36
Total 76
2 2
i
R 1 (6 d ) / n(n 1)
1 (6)(76) /10(99) 1 0.46 0.54.
= − −
= − = − =
∑
51. E The ESS = 0 when there is a perfect correlation between the independent variable (X) and dependent
variable (Y)
i.e. At, , =1
or RSS = TSS ⇒ ESS = 0
∴ ESS = 0 when .
r 1 = ±
2
r 1 =
RSS
TSS
⇒
r 1 =
52. E
Upper control limit (UCL) =
= = 0.512.
n
) p 1 ( p
3 p
− ×
+
60
67 . 0 33 . 0
3 33 . 0
×
+
53. A The expected frequency for the cell (white collar, neutral) is [(21 + 30 + 25) x (26 + 30 + 28)]/244 = (76 x
84)/244 = 26.163.
54. D DOF = (Number of rows – 1)(Number of columns – 1) = (4 – 1)(3 – 1) = 6.
55. C Total number of defectives out of 40,000 items in 20 samples is:
405 + 418 + 324 + … + 460 + 190 = 6572
=
Therefore the central line is set at 0.1643.
p
6572
0.1643
40000
=
56. D
The value of the grand mean
Variance between the samples can be computed as below:
ji
x
420 450 380 390 1640
x 82
n 20 20
∑
+ + +
= = = =
n
j
j
x
2
j
(x x) −
n
j
2
j
(x x) −
5 84 4 20
5 90 64 320
The variance between the sample means =
5 76 36 180
5 78 16 80
Total 600
2
j j 2
x
n (x x)
600
s 200
k 1 4 1
∑ −
= = =
− −
57. E It is given that sample variance = 28
Hypothesized value of the population variance = 56
Sample size = 25
The value of the Chisquare statistic is 12.
2
2
2
(n 1)s (25 1)28
56
− −
χ = = =
σ
58. B This is an analysis of variance. The critical value would be found from the table of Fdistribution.
The number of degrees of freedom in numerator = (k – 1) = 3 – 1 = 2
The number of degrees of freedom in denominator = (n
T
– k) =15– 3=12 = 15 – 3 = 12.
The value for F statistic from the table at 5% level of significance is given as:
F(2, 12, 0.05) = 3.89.
59. C (334 – 310)/310 x 100 = 7.74%.
60. D (10000/4) x (155/100) = 3,875 [Hint: 4 quarters = 1 year].
61. C (a) This is a wrong answer. If we observe that the sample means are hugging the center line then the
deviations are minor and uniform in nature. This indicates that the variation has been reduced to great
extent.
(b) This is a wrong answer. If the observations are such that it can be described to be ‘hugging the
control limits’, then this refers to the deviations being uniform in nature but having large magnitude.
This indicates that the means of two different populations are being observed.
(c) This is the right answer. If the observations can be described as jumps in the level around which the
observations vary, then this pattern indicates that the process mean has been shifting.
(d) This is a wrong answer. If some of the points lie outside the upper or lower control limits or if there
is an increasing or decreasing trend in the observations, we conclude that the process is out of control.
(e) This is a wrong answer.
62. D
We know that Paasche’s index =
ΣP
1
Q
1
= (10.25 × 4800) + (14.00 × 5500) + (28.00 × 3500) +(14.50 × 2400) + (4.50 × 600)
= 261700.
ΣP
0
Q
1
= (7.5 × 4800) + (10.00 × 5500) + (25.00 × 3500) + (10.60 ×2400) + (2.60 × 600)
= 205500.
Paasche’s index =
=
1 1
0 1
PQ
100
P Q
∑
×
∑
1 1
0 1
PQ
100
P Q
∑
×
∑
261700
100 127.35.
205500
× =
63. E
Fisher’s ideal price index =
Paasches price index =
= = 129.10.
index price Paasches index price Laspeyres ×
2
(Fisher ' s ideal price index)
Laspeyres price index
122
) 5 . 125 (
2
64. C In a typical Runs Test the change in share prices may be classified as ‘+’ meaning an increase and ‘ ’
meaning a decrease.
A run is said to last as long as the price changes do not change direction.
−
Day 0 1 2 3 4 5 6 7 8
Price 101.1 101.05 101.5 105 105.6 106.5 105.4 110 109
Daily Price
change
– + + + + – + –
Runs 1 2 3 4 5
Therefore, here the number of runs is 5.
So, option (c) is correct.
65. E MarshallEdgeworth price index =
( )
( )
1 0 1 1 0 1 1
0 0 1 0 0 0 1
200 130
100 100 100
160 103
330
100 125.5
263
Σ + ∑ + ∑ +
× = × = ×
Σ + ∑ + ∑ +
× =
P Q Q PQ PQ
P Q Q P Q P Q
66. D
Here moving total 17 represents 4 + 5 + 8; moving total 19 represents 5 + 8 + 6 etc,.
Here moving average 5.667 is associated to 5,
Here moving average 6.333 is associated to 8,
Similarly,
Moving average 5.000 is associated to 2.
Data Points. Moving total of
order 3.
Moving
averages
4
5 17 5.667
8 19 6.333
6 16 5.333
2 15 5.000
7 12 4.000
3 11 3.667
1 13 4.333
9
67. E
Fisher’s ideal price index =
=
=
=
= 125.605.
1 0 1 1
0 1 0 0
PQ PQ
100
P Q P Q
∑ ∑
× ×
∑ ∑
1 0 1 1
0 0 0 1
PQ PQ
100 100
P Q P Q
∑ ∑
× × ×
∑ ∑
1 0
0 1
PQ
Valueindex 100
P Q
  ∑
× ×

∑
\ ¹
20, 000
81.25 100
10, 300
 
× ×

\ ¹
68. D The following statements are true regarding Control Charts.
I. and R charts are deal with quantitative variables.
II. P charts deal with qualitative factors.
Given Statement III is false. Because, If the plotted points are within the lower and the upper control limits
and there is no increasing trend or decreasing trend or cyclic fluctuations then we can conclude that the
process is within control.
Hence option (d) is correct.
X
69. C Let the following notations be used:
X = Advertisement expenditure
Y = Sales
b =
ˆ
Y a bX = +
2 2
n XY X Y
n X  ( X)
∑ ∑ ∑
∑ ∑
X Y X
2
XY
37 480 1369 17760
63 540 3969 34020
60 590 3600 35400
88 870 7744 76560
; n = 6
b = .
80 630 6400 50400
73 790 5329 57670
Total 401 3,900 28,411 2,71,810
XY = 2, 71, 810; X = 401; Y = 3, 900 ∑ ∑ ∑
2
X = 28, 411 ∑
2
6(2, 71, 810) (401)(3, 900) 66, 960
6.928
9, 665
6(28, 411) (401)
−
= =
−
a Y bX
3900 401
6.928
6 6
186.9787.
= −
= − ×
=
ˆ
Y a bX
=186.9787 + 6.928X
If X 78, then
ˆ
Y 186.9787 6.928 78
727.3627.
= +
=
= + ×
=
70. D The following statements are true regarding dual of a LPP.
I. The solution to a dual problem provides all essential information about the solution to the primal
problem.
II. It may be easier to solve the Dual problem rather than the primal problem as when the primal
involves few variables but many constraints.
Given statement (III) is false because, For every Linear Programming formulation there exist one and only
one Dual formulation.
Hence option(d) is correct.
71. E Substitute the different values of X and Y of the vertices of the feasible region and find the maximum
value of Z as follows:
Z = 8X + 6Y
For (0, 0), Z = 8 x 0 + 6 x 0 = 0
For (0, 12), Z = 8 x 0 +12 x 0 = 72
For (15, 0), Z = 8 x 15 + 6 x 0 = 120
For (12, 6), Z = 8 x 12 + 6 x 6 = 132.
Hence (e) is the answer.
72. B The (Z
j
– C
j
) row is also called the index row or the net evaluation row which is used to indicate whether
the optimal solution has reached or not. The slack variables represent unused resources and therefore their
contribution in the objective function is zero. To compute new values for the key row or pivot row, divide
all values in the pivot row by the pivot element.
73. A Let the number of type od A, B and C cars are A, B and C respectively.
Objective function:
Subject to:
Using slack variables the constraints would look like
………...(i)
……….(ii)
So, the first tableau of the simplex method of this problem would look like
Tableau 1
55000A+60000B+72500C
8A+8B+9C 10120 ≤
8A+9B+11C 11000 ≤
1
8A+8B+9C S 10120 + =
2
8A+9B+11C S 11000 + =
55000 60000 72500 0 0
Variable Xj Cj A B C S
1
S
2
Min. Ratio
Variable to enter: C
Variable to leave: S
2
Tableau 2
Variable to enter: A
Variable to leave: S
1
Tableau 3
Since, all (Z
i
– C
i
) value are nonnegative, the optimal solution is reached
A =770, B = 0, C = 440 . So the company would not produce any type B cars.
S
1
10120 0 8 8 9 1 0
=
1124.4
10120
9
S
2
11000 0 8 9 11 0 1
=
1000
11000
11
(Z
i
– C
i
) –55000 –60000 –72500 0 0
55000 60000 72500 0 0
Variable Solution Cj A B C
S
1
S
2
Min. Ratio
S
1
1120 0
0 1
–
9
11
C 1000
72500
1 0
1
11
(Z
i
– C
i
)
0 0
55000 60000 72500 0 0
Variable Solution Cj A B C S
1
S
2
A 770 55000 1
7
16
0
11
16
–
9
16
C 440 72500 0
1
2
1
1
2
−
1
2
(Z
i
– C
i
) 0 312.5 0
3125
2
10625
2
74. A Objective function is maximize f(x, y) = 143x+60y
Consider the corresponding system of linear equations and the feasible region:
16
11
7
11
1120 11
770
16
×
=
8
11
9
11
1000 11
1375
8
×
=
25000
11
−
7500
11
−
72500
11
Feasible region vertices are (0, 0), (0, 500/7), (400/11, 0) and (20, 60).
Here the maximum value is 6460 at (20, 60).
The value of x at the optimum solution is 20.
75. E A graphical solution to a linear programming problem will have multiple optimal solutions if the objective
function is parallel to an edge of the feasible region which is in the direction of the optimal movement of
the objective function. If none of the edges of the feasible region is parallel to the objective function then,
the possibility of multiple optimal solutions does not arise.
76. A The dual of this problem would be
Maximize Z = 2X
1
+ 6X
2
+ 4X
3
Subject to: X
1
+ 3X
2
+ 2X
3
< 12
X
1
+ X
2
+ X
3
< 20
X
1
, X
2
, X
3
> 0.
77. D Modernmodulator demodulator is a device or program that enables a computer to transmit data over
analogue telephone lines. Computer information is stored digitally, when as information transmitted over
telephone lines is transmitted in the form of analogue base.
78. E The following are basic characteristics favoring the usage of computers
I. Volume.
II. Speed.
III. Accuracy.
IV. Complexity.
Hence option (e) is correct.
79. D Statement (d) is false. The correct statement is the symbols may be of any size, only the shape is standard.
Given statements (a), (b), (c) and (e) is true.
Hence option (d) is correct.
(a) (b) (c) (d) (e)
0 1 21 34 36.
(1 mark)
8. Find out the sum of the following series:
1 1 1 S = 4 + 4 + 4 + ...........∞ 2 2 2 (a) 4 (b) 2 (c) 80 (d) 0.25
2 3
(e)
9.
2 −1
.
(1 mark)
t →0
2 lim 2 − 4 − t = 2
t
(a) (b) (c) (d) (e)
10.
1 4 1 2 2 4
2.
(1 mark)
What is the value of (a) (b) (c) (d) (e)
11.
f ′(x), if f (x) =
1− x 2+x ?
− − − −
3 (2 + x) 2 2 (2 + x) 2 (2 + x) 2 3 (2 + x)3
1 (2 + x)2 .
(2 marks)
2 Differentiate y = 13x − 5x+8 .
(a) (b) (c) (d) (e)
26x+5 2 13x 2 − 5x+8 52x − 5 2 13x 2 − 5x+8 26x − 5 2 13x 2 − 5x 26x − 5 2 13x 2 − 5x+8 26x − 5
2 x 2 − 5x+8 . (1 mark) 12. The Marketing Manager of United Home Products Ltd., has collected the following data pertaining to the sales of one of the products of the company in the past few years:
then the variance of 10. Consider the following frequency distribution given below: The mode of frequency distribution is (a) (b) (c) (d) (e) 6 10 142 16 19. 12.9.8 47. (1 mark) 17.9 45. The standard deviation and the mean returns of 5 securities A. 18 and 20 is (1 mark) (a) (b) (c) (d) (e) 10. These samples were tested in the laboratory and rated as to the amount of solid particles suspended in each sample. The Environmental Protection Agency took water samples from 10 different locations of the Ganges.Year Sales (thousand units) 2001 14 2002 26 2004 46 2005 57 2006 68 2007 80 Find out the approximate number of units of the product sold in the year 2003 using interpolation techniques.7 41.8.6. 16.7 64. C. The variance of the data 8.9.8 18. Security Mean returns Standard deviation Which of the above securities is consistent? (a) (b) (c) (d) (e) A B C D E. The results of the testing are given in the table below.0 56.0 and 29.0 and 39. 18 is 14. 16.8 29. D and E are given below.8 14. (a) (b) 2 and 2 2 and 3 .1 (ppm) Arrange the data into an array from highest to lowest. 14.6 23. Which of the following is considered as the best measure of dispersion? (a) (b) (c) (d) (e) Quartile deviation Mean deviation Range Standard deviation Interquartile range. B. And determine the number of samples having pollution content between 20.3 52. A 12 2 B 24 3 C 18 4 D 36 5 E 42 6 (1 mark) 15. 13. Interval 0 – 10 10 – 20 20 – 30 30 – 40 40 – 50 Frequency 26 47 33 16 22 (1 mark) 16. 14.2 38. 30.4 33. Sample 1 2 3 4 5 6 7 8 9 10 Pollution rating 27. (a) 34 (thousand units) (b) 38 (thousand units) (c) 44 (thousand units) (d) 40 (thousand units) (e) 36 (thousand units). (1 mark) 14.8 16.
11 15.50 for second class. The fuel consumption figures in kilometers per liter for the sixteen cars owned by the company were compiled as follows: 14.11 What is the median fuel consumption? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) 15.27 15.02 (1 mark) 19. XYZ company runs a taxi service in a big city. In a factory.51 15. Rs. Machine C turns out a defective is 0. 16. It has its own filling station for fuel. Raw data Frequency polygon Histogram Data array None of the above. 5.300 Rs. Machine B turns out a defective is 0. 45% buy first class tickets and the remaining buy second class tickets.05 15.02 15. 4.15 15. 6 (1 mark) 21. how much would the box office expect to take in per 1000 patrons? (a) (b) (c) (d) (e) Rs.(c) (d) (e) 3 and 4 0 and 2 0 and 3. A movie theater charges Rs.650 Rs. The probability that Machine A turns out a defective is 0. A screw is picked at random and is found to be defective. 2.24 16.1.345.22 16. What is the probability that it was produced by Machine A? (a) (b) (c) (d) (e) 1 2 1 3 1 4 1 5 1 . 5.27 15.6 for first class and Rs. (1 mark) . Rate of change in frequency from one class to the next is best shown in (1 mark) 20.2. Which of the curves has the largest mean? (a) (b) (c) (d) (e) Curve A Curve B Curve C It will depend on the frequency distribution It cannot be estimated from the figure.11 16.01 15.3. (1 mark) 22.15.91 15.75 14.500 Rs. 17.8 for balcony.77 16. If 15% of its patrons buy balcony tickets.05 15.300 Rs.89 16.72. (2 marks) 18.75 15.99 14. there are three machines used in the manufacturing of screws.
the corresponding value of variable X will be (a) 5 .000 respectively.95.23.5000 0.2000 0.5 13. The board of ABC company is considering some major policy changes that will affect the company’s three divisions. 2.5 Security B 13 or 5 0. The returns from the two securities are perfectly negatively correlated. If the marginal profit and marginal loss for stocking an additional car by a car dealer are Rs.1 20.5 14. What is the probability that he is from the Finance division? (a) (b) (c) (d) (e) 4/45 1/4 4/15 1/2 3/4.0 0.80 0. Particulars Return (%) Probability Security A 7 or 11 0.2 10.0 0.1667 0. Consider the following data about two securities A and B. Probability 0.75 0.10. (2 marks) 27.2 10 12 0.25 respectively.50 0.2 In a Monte Carlo simulation method.0 0. The value of a variable X and its probability p is shown below X p 5.0 0.35 0.4 15. Meetings were held with groups of employees from the three divisions. What is the portfolio risk as measured by its standard deviation? (a) (b) (c) (d) (e) 0. Plan A B The expected payoff under perfect information is (a) (b) (c) (d) (e) 12. Consider the following profit table. Opinion Strongly oppose Slightly oppose Neutral Slightly support Strongly support Textile 2 2 3 2 6 Division Garments 2 4 3 3 3 Finance 4 3 5 2 1 An employee from one of the groups strongly opposes the policy changes. (1 mark) 25. (1 mark) 24.4 13.000 and Rs.6670. then the probability of selling an additional car that will justify the stocking of that car should be at least (a) (b) (c) (d) (e) 0.0.75 and 0.5 18. if a random number 37 is generated between the interval 1 – 100.8 15 13 (1 mark) 26. The opinions of the employees are summarized in the table given below.2500 0. The management was keen on getting the employees’ opinion before going ahead with the changes.5 We construct a portfolio of the two securities with proportions of A and B being 0.
A portfolio manager A has been able to beat the market in four out of five periods.248.(b) (c) (d) (e) 10 15 18 9. In a test of ANOVA. An employer categorizes job applicants according to whether they have a University degree and whether they have had relevant work experience. 2 (2 marks) 31. 000 999 1. what is the probability of all the portfolio managers A.724 and the estimate of the population variance based on the variance within samples is 2.3344 0. portfolio manager B has been able to beat the market in three out of four periods and portfolio manager C has been able to beat the market in two out of three periods.6. (1 mark) 28. what is the probability that it came from Box one? (a) (b) (c) (d) (e) 1 1. (1 mark) 32. If the ball is red. Assuming that the past performance of all the three portfolio managers will be repeated in future also.4766 8. B and C beating the market index? (a) (b) (c) (d) (e) 1 5 2 5 4 5 3 5 1 .8 0.9722.4 0.7 0. Box two contains 1 red and 999 white balls.9911 4. Box one contains 1 white and 999 red balls. A ball is picked from a randomly selected box. The possible number of samples of size 5 taken from a population of 10 elements is (a) (b) (c) (d) 2 5 10 252 . What is the probability that a randomly selected job applicant has either a degree or relevant work experience? (a) (b) (c) (d) (e) 0. the estimate of the population variance based on the variance among the sample means is 6. 70 percent have a degree with or without any work experience and 60 percent have work experience with or without a degree. What is the Fratio for this test? (a) (b) (c) (d) (e) 0. 3 (1 mark) 30.6666 2. In a large group of applicants. 50 percent of the applicants have both a degree and relevant work experience.2 0. (1 mark) 29. 000 1 10 9 10 1 .
at a significance level of 5%? (a) (b) (c) (d) (e) There is no difference between the MBA results and general examination results There is a significant difference between the MBA results and general examination results The number of first divisions in MBA results are more than the general examinations results The number of failed students are less in the MBA results than the general examinations results No conclusion can be drawn. A sample of 100 ball bearings is selected and their average diameter is found to be 0. A random sample of size 9 is selected from a symmetrical population with a unique mode. The completion time is normally distributed with a standard deviation of 9 weeks. The standard error of the mean is (a) (b) (c) (d) (e) 0.78. (1 mark) 39.78.5 inches.0952 Cannot be determined from the information given.22). 159. (1 mark) 33. It is known that the standard deviation of the ball bearings is 0. It was found that 46 students have failed. After analyzing the requirements for completing the project. This sampling technique can be described as (a) (b) (c) (d) (e) Simple random sampling Stratified random sampling Systematic random sampling Cluster sampling Judgmental sampling.4525 0.22) (125. 179. (1 mark) 37. Which of the following conclusions can be drawn from the given data. the first element is randomly selected and thereafter all other elements are selected based on a predetermined plan. (1 mark) 36.0002 0. 149. 189. A sample analysis of examination results of 200 MBAs was made. You are a project manager for a construction project.22) (140.9525 0.78. What is the 95% confidence interval in which the populations mean (µ) will lie? (a) (b) (c) (d) (e) (120.0003 0.0005.005 inches. If X1 and X2 are independent then P(X2 – X1 (a) (b) (c) (d) (e) P(Z P(Z P(Z P(Z P(Z ≥ 30) would equal to ≥ ≥ ≥ ≥ ≥ 10/25) 10/5) 1) 7) 10).22) (135. (1 mark) 34. 68 secured a third division.78.22) (130.498 inches. for the various categories (in the same order as above) respectively.0475 0.0004 0. The probability of completing the project in 95 weeks or less is: (a) (b) (c) (d) (e) 0. 62 secured a second division and rest were placed in the first division.78. (2 marks) . you find that it would take an average of 80 weeks to finish. 169. The sample mean and standard deviation are 150 and 25 respectively. A machine is producing ball bearings with diameter of 0. If a hypothesis is tested at a significance level of 10% then it means that (a) (b) (c) (d) (e) There is 10% probability that the null hypothesis will be rejected though it is true There is 10% probability that the null hypothesis will be false There is 10% probability that the null hypothesis will be true There is 90% probability that the alternative hypothesis will be false There is 90% probability that the alternative hypothesis will be true. In a sampling technique. X is a normal variable with mean 25 and standard deviation 3. (1 mark) 35. as the data is insufficient. (2 marks) 38. X is another normal variable with mean 50 1 2 and standard deviation 4.0001 0.(e) 3628800. An analyst wants to test whether these figures are commensurate with the general examination results which is in the ratio of 2: 3: 3: 2.
(1 mark) 42.75 3. Where X is the dependent variable and X and X 1 2 3 1 2 3 are independent variables. r23 = 0.8196. The Customs Commissioner wants to test at a significance level of 5% whether the smuggling has increased above its historic level. 30.75 − 2. in which X is the independent variable. Each day. (1 mark) 43.20 − 1. On 64 randomly chosen days in 1992.37 61. Which of the following statement(s) is/are true regarding estimation? I. The interval estimate indicates the accuracy (or precision) of an estimate. If an estimate of a population parameter is given by two distinct numbers between which the parameter may be considered to lie. 16 million per day.60 approximately.21 54.20.7984.95.3 million in contraband goods. III. The coefficient of correlation between X and Y is 0. X and Y. (II) and (III) above. A regression relationship has been established between two variables. II. with a standard deviation of Rs. (1 mark) 46. 28 million in contraband goods being smuggled into the country. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I).15 1. r13 = 0. What percentage of the variation in X1 can be explained by the multiple regression equation in terms of X2 and X3? (a) (b) (c) (d) (e) 70. In a multiple regression with n observations and k independent variables.75 1. (1 mark) 41. X and X .35 1.75. 3 15 4 12 7 10 6 11 5 13 (2 marks) 44.40. The following data pertains to 3 variables – X .75 50.7698. If an estimate of a population parameter is given by a single value. What percentage of the . r12 = 0. then the estimate is called a point estimate. (2 marks) 45. the Indian Customs Service intercepted an average of Rs. the standard error of estimate is calculated using the number of degrees of freedom as (a) (b) (c) (d) (e) n–2 n–k n – k –1 n – k +1 n + k –1.95 1. then the estimate is called an interval estimate. the Indian Customs Service has historically intercepted about Rs. What is the value of the appropriate test statistic for the above test? (a) (b) (c) (d) (e) 0.80 65. the collection of all the elements under study is called as (a) (b) (c) (d) (e) Domain Population Range Central pool Collection. In statistics. Consider the following sample of paired observations: X Y The covariance between X and Y is (a) (b) (c) (d) (e) − 2.65 1.
Error sum of squares = 576. Y = 55 ˆ If X = 15. In which of the following conditions will the error sum of squares for a simple regression relationship be zero? . Crore) and working capital (Rs. For a simple regression equation the following results were obtained: ˆ If X = 10. The standard error of estimate is 4.78 0. (2 marks) 51. (1 mark) 47. the ratio of the regression sum of squares to the error sum of squares is 3 : 2.025 (e) 3. What is the coefficient of determination for the regression relationship? (a) (b) (c) (d) (e) 0. Crore).81.8. Company 1 2 3 4 5 6 7 8 9 10 Profit (xi) 5 2 7 1 6 9 3 4 10 8 Working Capital (yi) 4 1 10 3 9 7 5 6 8 2 Calculate the Rank correlation coefficient(R) to get a better measure of the strength of association between them. Y = 75 ˆ Where X is the independent variable and Y is the estimated value of the dependent variable Y.16 0.60 0. ∑ XY ? (2 marks) 49. (a) (b) (c) (d) (e) 0. ∑ X = 60 ∑X 2 = 645 Number of observations = 6 What is the value of (a) 900 (b) 225 (c) 3.17 0.40 0. (1 mark) 48. The data are shown in the table given below.025.36 0.46. Ten companies are ranked on the basis of their profits (Rs.25 0.variation in Y is not explained by the regression relationship? (a) (b) (c) (d) (e) 0% 19% 34% 64% 81%.480 (d) 2.54 0. A multiple regression relationship contains two independent variables. (2 marks) 50. For a regression relationship. What is the number of data points? (a) (b) (c) (d) (e) 24 25 26 27 28.
78 94 74 79 87 91 78 83 81 87 70 78 89 90 82 69 85 88 76 81 What is the estimated population variance using the variance between the sample means? . (1 mark) 56.1632 0.21 31. Consider the data given below.(a) (b) (c) (d) (e) 52. if n = 60 and p = 0.16 28.451 0.391 0.1621 0. (1 mark) 55.64. Each of 20 lots of rubber belts contains 2000 rubber belts.1652 0. neutral) is (a) (b) (c) (d) (e) 26.1662.33. Particulars Occupation Blue collar worker White collar worker Professionals Attitude Towards Social Legislation Support Neutral Oppose 25 21 30 26 30 28 29 25 30 The expected frequency for the cell (white collar.54 30.368 0. (1 mark) 53. (1 mark) In a pchart. Correlation coefficient = 0 – 1 < Correlation coefficient < 0 0 < Correlation coefficient < 1 Correlation coefficient = 0.1643 0.512. State of Economy Boom Moderate Growth Slow Growth Recession Low Promotion 29 25 22 15 Sales (Rs. The numbers of defective rubber belts in these lots are as follows: 405 397 418 434 324 294 332 324 292 220 340 460 282 258 300 226 320 460 296 190 The value of central line for the pchart for the fraction of defectives is (a) (b) (c) (d) (e) 0. Consider the following data regarding the sales projections of a new product. (1 mark) 54. the value of Upper Control Limit (UCL) will be given by (a) (b) (c) (d) (e) 0.347 0. The unit sales for five stores using all four promotions in different months follow: Free samples Onepack gift Rupees off Refund by mail A test of ANOVA has to be performed. A study compared the effects of four 1month pointofpurchase promotions on sales. crore) Moderate Promotion 33 28 26 20 High Promotion 48 35 29 22 The degrees of freedom in the above data is (a) (b) (c) (d) (e) 3 4 5 6 None of the above.24 32.75 Correlation coefficient =1.
The following are productivity measures for individuals trained by each method.837 3.875 2.77 5. (a) (b) (c) (d) (e) 8 9 10 11 12. (1 mark) 61.89 4. The manager wants to test whether the variability in output differs at the two experience levels. it has been shown that the average output per hour for new employees at this particular type of work is 20 units with a variance of 56 units squared.(a) (b) (c) (d) (e) 194 196 198 200 202.43 4. Which of the following inferences is most appropriate? (a) (b) (c) (d) (e) The variations have been reduced to a great extent The means of two different populations are being observed The process mean has been shifting The process is out of control None of the above. Three training methods were compared to see if they led to similar productivity after training. For a sample of 25 employees with 5 years’ experience. A food grains merchant wants to know the overall change in prices of the commodities he deals in. Then the number of rooms that will be booked during second quarter in 2008 will be (a) (b) (c) (d) (e) 8. The composite price index of a basket of goods was 310 in 2006 and 334 in 2008. but he does not expect the variability in output rate to differ for the two groups.52%. with a variance of 28 units squared. The quality manager of the bottling plant of a cola major wants to ensure that the quantity of soft drinks in the bottles is as printed on the label of the bottle. (1 mark) 62.18% 6. What is the critical value for the appropriate statistical test at a significance level of 5%? (a) (b) (c) (d) (e) 2. In previous output studies.000. Towards the end of the week he observes that the observations are within the control limits but there are jumps in the level around which the observations vary.87 3. (2 marks) 57.222. the average output per hour for this same type of work is 30 units. He provides the following information: Year Commodity Price 2006 Quantity Price 2008 Quantity . An hotelier found that the total number of bookings during 2007 was 10. (2 marks) 59. The seasonal index during the second quarter was found to be 155. Method 1 46 41 51 39 53 Method 2 59 43 47 51 40 Method 3 42 38 45 42 53 It is to be tested whether the three training methods lead to the same mean productivity. (2 marks) 58. A production manager feels that the output rate of experienced employees is surely greater than that of new employees. how much did the general price level rise between 2006 and 2008? (a) (b) (c) (d) (e) 5.74% 17. (1 mark) 60.86% 19.735 7.56% 7.29. Find the value of the test statistic for the above test.853 5. If both the indices were computed from a base of 100 in 2000. He takes the samples of ten bottles every day and plots a control chart for the mean quantity of beverage in the bottle.
) 4 6 5 2 2008 Quantities (Units) 6 5 10 13 (2 marks) 66.5 6 105.) 10.46 127.50 Laspeyres price index = 122. The following details are available with regard to a basket of goods: ∑ P1Q 0 = 20.35 126. What is the moving average of order three associated with 2 of the following data? 4 (a) (b) (c) (d) (e) 5.50 10.00 Paasche’s price index for the year is approximately (a) 102.50 (d) 127.90 (b) 115.667 6.000. (2 marks) 63.5 124.24.68 129.5 125.300 ./Kg.00 14.333 5.4 7 110 8 109 Identify number of runs.1 1 101.00 10.00 25.) 2 5 4 2 2006 Quantities (Units) 8 10 14 19 Price (Rs. (1 mark) 65.20 (e) 129.) 5000 6000 3000 3000 500 (Rs. Prices (Rs.333 5.5 123.Wheat Rice Pulses Sugar Salt (Rs. Consider following daily price changes of a share.05 2 101.6 5 106.25 14.10.) 4800 5500 3500 2400 600 What is Paasche’s price index for the year 2008 using 2006 as the base year? (a) (b) (c) (d) (e) 130. 64.000 4.60 2.5. Construct index number of prices for the year 2008 from the following data by applying MarshallEdgeworth method.57 128.50 4. Commodity A B C D (a) (b) (c) (d) (e) 121. (1 mark) Day Price 0 101.5 122./Kg.60 (Kg. The year 2006 is base year.) 7. The following index values pertain to a year: Fisher’s ideal price index = 125. (a) (b) (c) (d) (e) 3 4 5 6 7.000 ∑ P0 Q1 = 10. 5 8 6 2 7 3 1 9 (1 mark) 67.00 28.50 (c) 120.50 (Kg.5 3 105 4 105.
175 125. (15. P charts deal with qualitative factors. If the advertisement expenditure is Rs.727. The maximum value of Z is (a) (b) (c) (d) (e) 70 72 90 120 132. then we can conclude that the process is out of control.650. are given below: Advertisement expenditure (Rs. For every linear programming formulation there exist too many Dual formulations.3627 lakhs Rs. one can know whether the optimum solution has reached or not. X and R charts are deal with quantitative variables. (1 mark) 71.78 lakhs. (1 mark) . III.2467 lakhs Rs. III.. Which of the following statements is/are true regarding Dual problem? I. The solution to a dual problem provides all essential information about the solution to the primal problem.787. The profit function is Z = 8X + 6Y. (1 mark) 69. (II) and (III) above. II. The advertisement expenditure and the sales of Magna Products Ltd. Which of the following statements is/are true regarding Control Charts? I. then the estimated sales will be (a) (b) (c) (d) (e) Rs.105 194. (2 marks) 70.6247 lakhs Rs. 0). (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I). 0) and (12. III. The vertices of the feasible region for a profit maximizing linear programming problem is bounded by the vertices (0. (0.752. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above Both (II) and (III) above. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I).Value index calculated on the basis of the same basket of goods = 81.605 123. II. for the last six years.605.3547 lakhs Rs. The profit contributions of slack variables are greater than zero. (II) and (III) above.25 What is Fisher’s ideal price index? (a) (b) (c) (d) (e) 51.601. (1 mark) 68. If the plotted points are within the lower and the upper control limits and there is no increasing trend or decreasing trend or cyclic fluctuations. II. By observing the values in (Zj – Cj) row. 12). Which of the following is/are false? I. The row containing the pivot element should be compulsorily divided by it.505 154. in lakhs) Sales (Rs. in lakhs) 37 480 63 540 60 590 88 870 80 630 73 790 An estimating equation to predict sales from advertisement expenditure has to be formulated using the simple regression technique.2657 lakhs. (1 mark) 72. It may be easier to solve the Dual problem rather than the primal problem as when the primal involves few variables but many constraints. 6).
X3 > 0 Maximize Z = X1 + 3X2 + 2X3 Subject to: 3X1 + 2X2 + 1X3 ≥ 12 X1 + X2 + X3 < 20 (c) X1.000 and on type C it is Rs. the graphical solution to a linear programming problem will not have multiple optimal solutions? (a) (b) (c) (d) (e) One of the edges of the feasible region coincides with the horizontal axis One of the edges of the feasible region is parallel to the horizontal axis One of the edges of the feasible region coincides with the vertical axis One of the edges of the feasible region is parallel to the vertical axis None of the edges of the feasible region is parallel to the objective function.72. X2. y)=143x+60y Subject to the following constraints: x + y ≤100 120 x + 210 y ≤15000 110 x + 30 y ≤ 4000 x. y ≥ 0 The value of x at the optimum solution would be (a) (b) (c) (d) (e) 20 50 60 100 110. (2 marks) 74.000 labour units in factory F each month and the number of labour units. There are 10. B and C in two factories. The net profit on a car of type A is Rs. In which of the following conditions.55. At optimal solution how many type B car would be produced by the manufacturer? (a) (b) (c) (d) (e) Zero 120 240 440 770.500.73. (2 marks) 75. on type B it is Rs. What is the dual of the LPP equation? (a) Maximize Z = 2X1 + 6X2 + 4X3 Subject to: X1 + 3X2 + 2X3 < 12 X1 + X2 + X3 < 20 (b) X1. X3 > 0 Maximize Z = 2X1 + 6X2 + 4X3 Subject to: 3X1 + 1X2 + 2X3 < 12 X1 + X2 + X3 ≥ 20 . X2. A company manufactures three types of car. an engine plant E and a body factory F. Minimize P = 12W1 + 20W2 Subject to: W1 + W 2 ≥ 2 3W1 + W2 ≥ 6 2W1 + W2 ≥ 4 W1.000. W2 ≥ 0 (1 mark) 76. If the objective is to maximize f(x. A.120 labour units (a labour unit is approximately “one manhour”) available in E and 11. needed to build the various products is given in the following table: Car Type Engine Body A 8 8 B 8 9 C 9 11 This is a problem of maximizing the profit subject to these constraints as a linear programming problem.60.
III. X3 > 0 Maximize Z = X1 + 6X2 + 4X3 Subject to: X1 + 3X2 + 2X3 < 12 X1 + X2 + X3 ≥ 20 X1. Speed. (III) and (IV) above All (I).(d) X1. if it is other than top to bottom or left to right The symbols should be of a fixed size Every flow chart should begin with a ‘Start’ symbol and end with a ‘Stop’ symbol. Which of the following is/are basic characteristics favoring the usage of computers? I. (a) (b) (c) (d) (e) Only(II) above Only (III) above Both (II) and (III) above (II). (1 mark) 78. END OF QUESTION PAPER (1 mark) . Accuracy. (III) and (IV) above. Volume. (II). (1 mark) 79. X2. IV. Complexity. X3 > 0. (2 marks) 77. especially. X3 > 0 Maximize Z = 2X1 + 6X2 + 4X3 Subject to: X1 + 3X2 + 2X3 ≥ 20 X1 + X2 + X3 < 12 (e) X1. X2. X2. II. Which of the following statements is false? (a) (b) (c) (d) (e) JAVA can run on any operating system JAVA can be downloaded straight from internet WWW is a network of networks Modem is a piece of equipment that connects a computer to a data network Internet is a global network of computers. Which of the following statements is false regarding rules while constructing a flow chart? (a) (b) (c) (d) (e) The direction of flow should usually be from the top to the bottom of the page and from the left to the right Lines should never cross Arrowheads should be used to show the direction of the flow.
4. B option(a) a < b if and only if ( b − a ) > 0 To prove above statement. ⇒ 2. consider a < b . PVIFA(9. If ( b − a ) > 0 ⇒0< b−a ⇒a<b Hence a < b if and only if ( b − a ) > 0 . option(d) and option(e) are correct. 20) = 4. ⇒0<b−a ⇒ (b − a) > 0 Now consider ( b − a ) > 0 . now we have to prove a < b . now we have to prove ( b − a ) > 0 If a < b. Similarly option(c). Maya is willing to pay = 6000 × 4. E x x − = x−7 Given that 4 8 . option(b) If a < b and b > c then a < c Given that a < b and b > c ⇒ a < b and c < b From the above relationships we cannot say that a < c . A Hence option (b) is false.0310 = 24. 3. The amount Ms. E .0310 Thus.186.Suggested Answers Quantitative Methods (CFA530) ANSWER REASON 1. x x − = x−7 4 8 8x − 4x = x−7 32 4x = x−7 32 x = 8x − 56 7x = 56 ⇒ x = 8.
MC = 70. 9. . .P = 1100 − 8Q R = P×Q = (1100 − 8Q ) × Q R = 1100Q − 8Q 2 MR = ∂R = 1100 − 16Q ∂Q When Q = 45. 2 = a + b(7) Therefore. 5. 3). 8. y = 3x3 – 2x + 1 dy 2 = 9x − 2 dx 7. 3b = –1 or b = –1/3. A The given series is of the form. B Y = a + bX. 2). C 5x 2 − 10x − 15 = 0 In the given quadratic equation a = 5. . b = –10 and c = –15. 6. A t →0 lim 2 − 4 − t2 t2 = 2 + 4 − t2 2 − 4 − t2 lim t →0 2 2 t 2+ 4−t 4 − 4 − t2 ( ) lim t 2 2 + 4 − t 2 = t →0 . We now substitute these values in the formula. x= x= −b ± b 2 − 4ac 2a 10 ± 100 − 4 × 5 × ( −15) 10 10 ± 20 x= 10 30 −10 x= and x = 10 10 x = 3 and x = −1. . C = 1200 + 70Q MC = Therefore MR = 380 and MC = 70. a + ar + ar2 + ar3 + . then dy/dx = 9(2)2 – 2 = 36 – 2 = 34. α The sum of a series of this form. S = a/1–r a = 4(1/2) r = 1/2 4(1/ 2) 2 ∴ S = 1 − 1/ 2 => 1/ 2 => 2 x 2 => 4. At point (4. . 3 = a + b(4) At point (7. D If x = 2. ∂C = 70 ∂Q When Q = 45. MR = 380. . where a is the Yintercept and b is the slope of the line.
That is 14. 14. Standard Deviation × 100 Coefficient of Variation = Mean 14. Then differentiate (13x 2 − 5x+8) Thus. D 2 (The outer layer is “the square root” and the inner layer is (13x − 5x+8) .8. 12 + 2 = 14. D { 13x 2 − 5x+8 = D (13x 2 − 5x+8) 2 1 } 1 −1 1 2 2 D (13x 2 − 5x+8) (13x − 5x +8) = 2 − 1 2 2 (13x − 5x + 8) (26x − 5) = 2 1 26x − 5 1 2 = 2 (13x − 5x + 8) 2 26x − 5 = 2 13x 2 − 5x + 8 . 18 New series: 8 + 2 = 10. 16 + 2 = 18 and 18 + 2 = 20. B = 26 + 10 = 36 (thousand units). 10. Original series : 8. then f ' ( x ) = g '( x ) h ( x ) − g ( x ) h '( x ) ( h '( x )) 2 ( −1)( 2 + x ) − (1 − x ) × 1 2 (2 + x) 2 −2 − x − 1 + x (2 + x) −3 (2 + x) 2 . 12. The value of variance remains the same if in a series each of the observation is increased or decreased by a constant quantity. E The sales figure for 2003 46 − 26 (2004 − 2003) = 26 + 2004 − 2002 13. 2+x f (x) = If f '( x ) = = = 11. B Security A B C D E . A Given that f (x) = 1− x . 14 + 2 = 16.t2 = t →0 lim t 2 2 + 4 − t 2 1 = t →0 lim 2 + 4 − t2 1 1 = = 2+2 4 . Here each of the observation is increased by 2. leaving (13x − 5x+8) unchanged. 16. g (x) h (x) . 12. 2 Differentiate “the square root” first. Therefore variance remains same.
Let C be the event that the screw is produced on machine C. 17.89 14. Here largest frequency is 47 and it lies in the class interval 10 – 20. Therefore modal class is 10 – 20 Mode = Lm o + 10 + = (f − f1 ) xW 2f − f1 − f 2 47 − 26 x 10 (2(47) − 26 − 33) = 10 + 6 = 16.99 16.9 3 50.01 16.9 2 40.9 2 30.9 27.5(0. B 20.0 – 29.2222 13.75 Median = = 15.8 47. Hence the answer is (b).7 52.6 45.27 16. 14. In data array.2857 Here minimum coefficient of variation is associated to security B. C 22. A Sample 3 9 4 5 8 10 2 7 1 6 Pollution rating (PPM) 64. row wise.75 15. the data points are arranged in an ascending or descending order.0 – 69.0 – 59.15 1 = 0. [8(0. Standard deviation is regarded as best measure of dispersion.40)] x1000 = Rs. . Let B be the event that the screw is produced on machine B. D D Mean returns 12 24 18 36 42 Standard deviation 2 3 4 5 6 Coefficient of Variation 16.45) + 3. 23.02 16.15) + 6(0.0 41. 2 15. Therefore Curve C has larger mean than Curve A and Curve B. Let E be the event that the screw is defective.5 22.0 – 39.5.8889 14.24 16.300 P(F/STO) = P(F and STO)/P(STO). 15. Hence security B is consistent.6667 12.91 15.11 19. We observe that while the histogram indicates the fluctuations in frequencies from class to class.1 38.4 18.9 1 Total 10 We first arrange the data in an ascending order.77 14.9 2 60.15 + 0. Let A be the event that the screw is produced on machine A. B Raw data is information before it is processed or analyzed.05 The median is the average of the eighth and ninth data points.3 56.05 15. A Class of pollution rating Number of samples 20.0 – 49.1 + 0.02 15. it does not clearly reveal the rate of change in frequency from one class to the next.11 15. Required probability = P(E / A) = 0.22 16.7 33.2 3 . B D Here three curves are on same scale and Curve A mean is less than Curve B mean and Curve B mean is less than Curve C mean.11 15.15.2 23.51. 16.27 + 15. 21.
Let P(A). P(STO/F) = 15/45 . P(B) and P(C) be the probabilities of portfolio managers A.25 = 0.5 0. 000 1. 25.2 1. C 29. X Probability 30. 2) P(A / A1 ) = 1 P(A i ) = . 26.70 20 – 69 18 0.75) (4) + (0. We have.2) + 15(0.5(7) + 0.5(13 – 9)2 + 0. Estimated Return on Security A = 0.6 – 0.00 80 – 99 Since the random number generated was 37 (which falls in between 20 – 69).5 (11 – 9)(5 – 9) = –8.75)(0.25) (16) + 2(0.5(7 – 9) (13 – 9) + 0.80 70 – 79 20 0.5.B) = 0. P(A) = 4/5 P(B) = 3/4 P(C) = 2/3 P(ABC) = 4 3 2 2 x x = 5 4 3 5. by Baye’s theorem . 000 and Hence. The expected payoff under perfect information = 12(0.8) = 14.25)(−8) = B 0.5 = 0. 28.1667.20 00 – 19 10 0. Let the event of having a degree be denoted by D and let the event of having relevant work experience be denoted by WE. 4/15 P(STO) = 8/45 Thus.5(13) + 0. Cov(A. 24. B and C to beat the market.B) A A B B Portfolio Risk = 2 2 = (0.5(11 – 9)2 = 4.5(5) = 9 σ 2 = 0.1 0. 2 999 1 and P(A / A 2 ) = 1. Where.5(5 – 9)2 = 16.5 The required probability is P(D or WE) = P(D) + P(WE) – P(D and WE) = 0. P(D) = 0. B Let A be the event that a ball picked is red and Ai be the event that ith box is selected (i = 1.2 0.4. P(WE) = 0.6 P(D and WE) = 0. the value of X in this run is 10. 27. X 2 σ 2 + X 2 σ 2 + 2X A X B Cov (A.7. (The sum products of probability and the maximum profit in each column).5(7 – 9)2 + 0.8.P(F and STO) = P(F) .7 + 0. B Cumulative Random numbers Probability allotted 5 0.5(11) = 9 Estimated Return on Security B = 0. P(F/STO) = 15/45 x 4/15 x 45/8 = 1/2. A then σ A = 4 =2 σ 2 = 0. B Then σ B = 16 = 4. A D B P* = ML/(ML + MP) = 2000/(10000 + 2000) = 2000/12000 = 1/6 = 0.
Hence. In systematic sampling each element among first k elements (k < n) has an equal chance of being selected. but each sample does not have the same chance of being selected. But thereafter the elements are selected according to a systematic plan. Hence. 000 999 + 1. the first element of the population is randomly selected. which is equal to 0.5 or 5%. the required probability is 1. c. when t = 2.4525 + 0. = P(Z > 1). 33. 1 1 1. C 35. the 95% confidence interval is 38.306 × to 150 + 2. area under the curve between n n 25 25 150 − 2.P(A1 / A) = P(A1 ) . 37.4525 (see z table).0005.67 is equal to 0. it means that there is a 10% probability that the null hypothesis will be rejected though it is true.306. s s X − t and X + t is 95% when t = 2.005 100 = 0.9911.248 32. P(X2 – X1 > 30) 30 − mean (X 2 − X1 ) = PZ≥ sd (X 2 − X1 ) 30 − 25 = PZ≥ 4 2 + 32 36. P (0 < z < 95) = 0. = 2.724 = 2. P(A / A1 ) i =1 ∑ P(A / A i ) P(Ai ) 2 1 999 x 999 2 1. C z = (x – µ)/σ z = (95 – 80)/9 = 1. the area in both tails combined is 0. C Estimate based on the variance among sample means F –ratio = Estimate based on the variances within the samples 6.005 inches. 34. σ = 0. If a hypothesis is tested at a 10% significance level then. 9 9 So. D C 10C 5 = 10!/[(10 – 5!) 5!] = [10 x 9 x 8 x 7 x 6]/[5 x 4 x 3 x 2 x 1] = 252.306.9525. 000 31. . The sample size. we are 90% confident that the population mean lies in the interval 130.5 = 0. Thus.78 to 169. in addition to the above area we have to consider the total area of left hand side.5. b. d & e are incorrect interpretations of the significance level. σ n E Given that standard deviation of the population. Since this is a right tailed test. X = 150 s = 25 n=9 Degrees of freedom = n – 1 = 9 − 1=8 If we refer to the t table we see that for 8 degrees of freedom. 000 2 999 .306 × . 000 1. n = 100 The standard error of mean σx = = 0. the corresponding value for zscore 1.67. A Hence.22. Here. 000 = = . C Here.
The following table is generated for observed and expected frequencies: Observed Expected (fo–fe)2 / fe Category frequency (fe) frequency (fo) Failed 46 40 0. then the estimate is called an interval estimate.3 = 1. x −µ The test statistic z = σ / n 42.75 5 −1 4 44. . 60. The sample size is large and population standard deviation is known. Let us take the null hypothesis that there is no difference in the MBA results and general examinations results. = 30. the collection of all the elements under study is called population. getting third division. 1 − (0. Therefore 70.8196)2 + (0. ∑Y=61 X = 5. The calculated value of chisquare is greater than the table value. If an estimate of a population parameter is given by two distinct numbers between which the parameter may be considered to lie.067 Second Division 62 60 0.Y} Cov XY = ∑ ( X − X )( Y − Y ) n −1 Here n=5.2567 0. A R1. Hence it can be included that the MBA results are not commensurate with the general examination results (i.3 − 28 16 / 64 = 2.39..434 fe 40. So option (c) is correct. ∑X=25.815. then the estimate is called a Point estimate.400 The value of Chi square statistic.15.2567 = = 0. Statements (I) and (II) are false. For a paired sample {X. C (a) This is a wrong answer.7080. should be 40. the MBA results are different from general examination results). 45. In statistics.8414. Since correct statements are If an estimate of a population parameter is given by a single value. and first division. The null hypothesis is rejected. B B The table value of chisquare for 4 – 1 = 3 degrees of freedom at 5% level of significance is 7. 2 C 43.067 First Division 24 40 6. Y = 12.3626 = 2 R 1. A Only given statement III is true.900 Third Division 68 60 1.e. On the basis of ratio 2: 3: 3: 2. B This is a chisquare test of goodness of fit.8414)2 =0.80 percentage of the variation in X1 can be explained by the multiple regression equation in terms of X2 and X3.23 = (0.7984)]/ [(1 − (0. the expected number of students failing. The standard error of the estimate is not calculated using the number of degrees of freedom as n – 2.7698)2 − 2(0.7984)2 ] 0.23 = = 2 2 2 (r12 + r13 − 2r12 r23r13 )/[1 − r23 ] [(0. hence we use normal distribution to test this hypothesis.7984)2 0.2 and ∴ Cov XY = ∑ ( X − X )( Y − Y ) = −11 −11 −11 = = −2. 41.7698) (0. χ2 = ∑ (f o − fe)2 = 8. 60 and 40 respectively.8196) (0. second division.
10)b or 20 = 5b 20 =4 or b = 5 Putting the values of b in (B): 55 = a + 10 × 4 = a + 40 or a = 55 – 40 = 15 ˆ ∴ Y =15 + 4X ∑X Y − bX = Y − b n Now. a = ∑X 60 Y = a + b = 15 + 4 = 55 n 6 ∴ b= or 49. The standard error of the estimate is not calculated using the number of degrees of freedom as n + k –1.60 ESS RSS 3 2.(b) This is a wrong answer. Y = 75 ˆ If X = 10. 46. 47.64 = 64%. D D Explained variation is given by r2 = (0.60)2 = 0. (e) This is a wrong answer.55) = (15 .36 = 0. In a multiple regression with n number of observations and k independent variables.5 ESS = 2 = = 0. the standard error of the estimate is calculated using the number of degrees of freedom as n – k –1.. RSS RSS = Coefficient of determination = TSS ESS + RSS = 48.8 se = = ESS n − k −1 . ˆ ∑(Y − Y) n − k −1 2 E In multiple regression relationship: Standard error of estimate.(B) Subtracting (A) from (B) we get: (75 . Y = 55 ∴ 75 = a + 15b………(A) ∴55 = a + 10b ……. The standard error of the estimate is not calculated using the number of degrees of freedom as n – k +1. RSS 3 1. (d) This is a wrong answer. Given : ESS = 576 n =? k =2 se = 4.5 + 1+ ESS ESS 2 C A simple regression equation is of the form: ˆ Y = a + bX Given: ˆ If X = 15.36 and hence the unexplained variation is given by = 1 – 0. The standard error of the estimate is not calculated using the number of degrees of freedom as n – k. ∑ XY − nXY 2 ∑ X 2 − nX or ∑ XY − 6 4= 60 ( 55 ) 6 2 60 645 − 6 or 4 = 6 ∑ XY − 3300 45 ∑ XY = ( 4 × 45) + 3300 = 3480 . (c) This is the right answer.
8 = ESS n − 2 −1 ESS = 23. E Upper control limit (UCL) = 0.∴4. or n = 23.04 ∴ n −3 576 = 23.512.04 50. A D C The expected frequency for the cell (white collar.163. E The ESS = 0 when there is a perfect correlation between the independent variable (X) and dependent variable (Y) i.000 items in 20 samples is: 405 + 418 + 324 + … + 460 + 190 = 6572 6572 = 0. 55.33 + 3 p +3 p × (1 − p ) n = 53. Total number of defectives out of 40. 51.e.1643. di = xi – yi 1 1 –3 –2 –3 2 –2 –2 2 6 The rank correlation coefficient is given by Company Profit (xi) Working capital (yi) 1 2 3 4 5 6 7 8 9 10 5 2 7 1 6 9 3 4 10 8 Total 4 1 10 3 9 7 5 6 8 2 di 2 1 1 9 4 9 4 4 4 4 36 76 R = 1 − (6∑ di 2 ) / n(n 2 − 1) = 1 − (6)(76) /10(99) = 1 − 0.67 60 = 0.04 or n − 3 576 + 3 = 28. DOF = (Number of rows – 1)(Number of columns – 1) = (4 – 1)(3 – 1) = 6. neutral) is [(21 + 30 + 25) x (26 + 30 + 28)]/244 = (76 x 84)/244 = 26.46 = 0. 56. r = ±1 . 54.33 × 0. r 2 = 1 ⇒ RSS TSS =1 or RSS = TSS ⇒ ESS = 0 ∴ ESS = 0 when r = 1 . C Here n = 10 and ∑d 2 i = 76 . 52.54. D The value of the grand mean x= ∑ x ji n = 420 + 450 + 380 + 390 1640 = = 82 20 20 (x j − x) 2 4 64 2 Variance between the samples can be computed as below: nj 5 5 xj 84 90 nj (x j − x) 20 320 . 0.1643 p = 40000 Therefore the central line is set at 0. At.
then this pattern indicates that the process mean has been shifting. B This is an analysis of variance. ΣP0Q1 = (7. The number of degrees of freedom in numerator = (k – 1) = 3 – 1 = 2 The number of degrees of freedom in denominator = (nT – k) =15– 3=12 = 15 – 3 = 12.60 × 600) = 205500. This indicates that the means of two different populations are being observed.50 × 2400) + (4. A run is said to last as long as the price changes do not change direction.60 ×2400) + (2.25 × 4800) + (14.89.00 × 3500) +(14.4 Daily Price – + + + + – change Runs 1 2 3 increase and ‘ − ’ 7 110 + 4 8 109 – 5 . 60. The critical value would be found from the table of Fdistribution.05) = 3.5 × 4800) + (10. If the observations are such that it can be described to be ‘hugging the control limits’. (b) This is a wrong answer. If the observations can be described as jumps in the level around which the observations vary.5 105. Paasche’s index = = 63. (e) This is a wrong answer.74%. C In a typical Runs Test the change in share prices may be classified as ‘+’ meaning an meaning a decrease. (334 – 310)/310 x 100 = 7. The value for F statistic from the table at 5% level of significance is given as: F(2. D ΣP1Q1 = (10.35.05 101. s2 = x ∑ n j (x j − x)2 k −1 = 600 = 200 4 −1 E It is given that sample variance = 28 Hypothesized value of the population variance = 56 Sample size = 25 The value of the Chisquare statistic is χ2 = (n − 1)s 2 (25 − 1)28 = = 12. If some of the points lie outside the upper or lower control limits or if there is an increasing or decreasing trend in the observations. 205500 Laspeyres price index × Paasches price index E Fisher’s ideal price index = Paasches price index (Fisher 's ideal price index) 2 Laspeyres price index = (125. We know that Paasche’s index ∑ P1Q1 × 100 = ∑ P0Q1 59. (c) This is the right answer. (a) This is a wrong answer. 122 64. ∑ P1Q1 × 100 ∑ P0Q1 261700 × 100 = 127.00 × 5500) + (28. 0.50 × 600) = 261700.5 5 76 78 Total 36 16 180 80 600 The variance between the sample means = 57. This indicates that the variation has been reduced to great extent. (10000/4) x (155/100) = 3.875 [Hint: 4 quarters = 1 year].5 105 105. 12. we conclude that the process is out of control. then this refers to the deviations being uniform in nature but having large magnitude.10. 61. (d) This is a wrong answer.6 106. C D C 62. Day 0 1 2 3 4 5 6 Price 101. If we observe that the sample means are hugging the center line then the deviations are minor and uniform in nature.00 × 3500) + (10.5) 2 = = 129. 56 σ2 58.00 × 5500) + (25.1 101.
333 9 Here moving total 17 represents 4 + 5 + 8. 67. here the number of runs is 5. option (c) is correct. Hence option (d) is correct. D Data Points. Here moving average 5. 69.333 2 15 5. 000 81.667 1 13 4. Moving total of order 3.000 is associated to 2. E Fisher’s ideal price index = ∑ P1Q1 ∑ P1Q0 × × 100 ∑ P0 Q1 ∑ P0 Q0 ∑ P1Q1 ∑ P1Q0 × 100 × × 100 ∑ P0 Q0 ∑ P0 Q1 ∑PQ Valueindex × 1 0 ×100 ∑ P0 Q1 20. MarshallEdgeworth price index = Σ P ( Q0 + Q1 ) 1 Σ P0 ( Q0 + Q1 ) × 100 = ∑ PQ0 + ∑ PQ1 200 + 130 1 1 × 100 = × 100 ∑ P0 Q0 + ∑ P0 Q1 160 + 103 330 × 100 = 125. C II.333 is associated to 8. Moving average 5. Similarly. If the plotted points are within the lower and the upper control limits and there is no increasing trend or decreasing trend or cyclic fluctuations then we can conclude that the process is within control. So.(∑ X) X 37 63 60 88 Y 480 540 590 870 X2 1369 3969 3600 7744 XY 17760 34020 35400 76560 .667 8 19 6. Because. Let the following notations be used: X = Advertisement expenditure Y = Sales ˆ Y = a + bX n ∑ XY . D = 125.∑ X ∑ Y 2 2 b = n ∑ X .605. 300 = = = 68.5 263 66. Given Statement III is false. X and R charts are deal with quantitative variables. I.65.333 6 16 5.667 is associated to 5. P charts deal with qualitative factors.25 × × 100 10.000 7 12 4.000 3 11 3. Moving averages 4 5 17 5. The following statements are true regarding Control Charts. E Therefore. Here moving average 6. moving total 19 represents 5 + 8 + 6 etc..
B and C respectively. 71.928X If X = 78. 70.(ii) So. = ˆ Y = a + bX =186.900 2 ∑ X = 28. ∑ X = 401.(i) 8A + 9B +11C + S2 =11000 ……….900) 66. 12).9787. 411 . Hence (e) is the answer. The slack variables represent unused resources and therefore their contribution in the objective function is zero. a = Y − bX 3900 401 − 6.900 6400 5329 28. 6). Z = 8 x 15 + 6 x 0 = 120 For (12. B 73. 0).810. 665 6(28.960 = = 6.. I. 411) − (401)2 b= . The solution to a dual problem provides all essential information about the solution to the primal problem. D 71.. A The following statements are true regarding dual of a LPP. Objective function: 55000A + 60000B+ 72500C Subject to: 8A +8B+9C ≤10120 8A +9B+11C ≤11000 Using slack variables the constraints would look like 8A +8B+ 9C + S1 =10120 ………. To compute new values for the key row or pivot row. Z = 8 x 0 +12 x 0 = 72 For (15. ∑ Y = 3. 0). II. E 72.Total 80 73 401 630 790 3. the first tableau of the simplex method of this problem would look like Tableau 1 55000 60000 72500 0 Variable Xj Cj A B C S1 0 S2 Min. Let the number of type od A.928 × 78 = 727.810) − (401)(3. Hence option(d) is correct. Ratio . It may be easier to solve the Dual problem rather than the primal problem as when the primal involves few variables but many constraints. Given statement (III) is false because. For every Linear Programming formulation there exist one and only one Dual formulation.9787 + 6. The (Zj – Cj) row is also called the index row or the net evaluation row which is used to indicate whether the optimal solution has reached or not. Z = 8 x 0 + 6 x 0 = 0 For (0.928 9. Substitute the different values of X and Y of the vertices of the feasible region and find the maximum value of Z as follows: Z = 8X + 6Y For (0. 71. Z = 8 x 12 + 6 x 6 = 132.810 ∑ XY = 2.411 50400 57670 2. n = 6 6(2. B and C cars are A. divide all values in the pivot row by the pivot element.928 × 6 6 = 186.9787 + 6.3627. then ˆ Y = 186.71.
B = 0. A Objective function is maximize f(x. all (Zi – Ci) value are nonnegative. 74. C = 440 . Ratio 9 – 11 1000 16 11 72500 7 11 9 11 1 0 8 11 (Zi – Ci) 1 11 72500 11 1120 × 11 = 770 16 1000 × 11 = 1375 8 0 0 Variable to enter: A Tableau 3 25000 − 11 7500 − 11 Variable to leave: S1 Variable A C Solution 770 440 (Zi – Ci) Cj 55000 72500 55000 A 1 0 0 60000 B 7 16 1 2 312. So the company would not produce any type B cars.S1 10120 0 8 8 9 1 0 10120 9 = 1124.5 72500 C 0 1 0 0 S1 0 S2 11 16 − 1 2 9 – 16 1 2 10625 2 3125 2 Since. the optimal solution is reached A =770.4 S2 11000 0 8 9 11 0 1 11000 11 = 1000 (Zi – Ci) Variable to enter: C Tableau 2 Variable S1 C Solution 1120 Cj 0 55000 A –55000 –60000 –72500 0 0 Variable to leave: S2 60000 B 72500 C 0 0 S1 1 0 S2 Min. y) = 143x+60y Consider the corresponding system of linear equations and the feasible region: .
The value of x at the optimum solution is 20. IV. . Computer information is stored digitally. 60). 500/7). 77. Hence option (e) is correct. Accuracy. Volume. (c) and (e) is true. E 79. A Feasible region vertices are (0. The dual of this problem would be Maximize Z = 2X1 + 6X2 + 4X3 Subject to: X1 + 3X2 + 2X3 < 12 X1 + X2 + X3 < 20 X1. D 78. Speed. when as information transmitted over telephone lines is transmitted in the form of analogue base. only the shape is standard.75. D Modernmodulator demodulator is a device or program that enables a computer to transmit data over analogue telephone lines. (0. The correct statement is the symbols may be of any size. III. II. The following are basic characteristics favoring the usage of computers I. Here the maximum value is 6460 at (20. 0). E 76. Statement (d) is false. A graphical solution to a linear programming problem will have multiple optimal solutions if the objective function is parallel to an edge of the feasible region which is in the direction of the optimal movement of the objective function. Given statements (a). 0) and (20. (b). If none of the edges of the feasible region is parallel to the objective function then. X3 > 0. Complexity. the possibility of multiple optimal solutions does not arise. X2. 60). Hence option (d) is correct. (400/11.
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