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mitsob sem 1 SRM question paper

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33rd Batch

Semester I

Term End Examination

Subject: Statistics & Research Methodology (103)

Total Marks:- 50 Duration: - 2Hrs.

Instructions:

a) This is an open book examination. The text book Statistical tools for Managers by Prof.

(GP.Capt.) D.P. Apte, only can be used.

b) Use of MS Excel is allowed. No other program / software should be used.

c) Write answers with working formulae and numerical work in the answer books.

d) Write the steps used in calculations using MS Excel.

e) All sections are compulsory.

______________________________________________________________________________

Q1. Many Indians suffer from high levels of cholesterol, which can lead to heart attacks. For

those with very high cholesterol levels (over 280), doctors prescribe drugs to reduce the

levels. A pharmaceutical company Shatayu Pharmaceuticals has assigned four teams to

develop drug. Every team was working for production of one drug. After all the teams

completed the given project of drug development, to determine whether any differences

exist in their benefits, the company conducted a clinical trial.

For this clinical trial, a team of investigators selected a total of sixty patients with high

level of cholesterol; exceeding 280. All the selected patients were randomly divided into

four groups and each group was given one drug. The drugs were administered over a 2-

months period and then the reduction in cholesterol was recorded. More the reduction in

the cholesterol level, better is the drug. The observations are as follows.

23 28 32 35

28 31 35 36

26 25 36 34

29 26 25 30

21 26 26 32

20 28 28 32

25 26 32 35

24 24 31 32

28 23 30 30

26 29 37 35

27 30 35 36

28 27 27 25

25 25 29 38

23 27 31 41

25 23 32 40

Set 1

i What is the average decrease in blood cholesterol level in four groups? What is the

standard deviation?

ii If the company wants to find whether all the four drugs are equally efficient which

statistical tool will you use? Can the pharmaceutical company conclude that all the four

drugs are giving similar benefit? Test at 5% level of significance.

iii Which are the pairs of drugs which can be used as substitutes of each other to get similar

results?

iv Which drug is better than others according to your analysis?

Q2. The Business Entrepreneur of Tasty Sub Shop wishes to predict yearly revenue for

potential Tasty Sub restaurant sites. He has collected the data concerning yearly revenue

(y) and population size (x).

Restaurant 1 2 3 4 5 6 7 8 9 10

Population size 21 28 32 37 40 45 50 55 62 65

(Thousands of residents)

Yearly Revenue 527 548 767 722 826 810 1040 1033 1090 1235

(Thousands Rs.)

i) Find the correlation coefficient between the population size and the yearly revenue.

Comment on the basis of correlation coefficient.

ii) Find the regression equation to predict the yearly revenue for the given population

size.

iii) Estimate the yearly revenue if the population size is 38.3 thousand.

Q3. A market research study is conducted to identify whether there exists a difference in pre

exposure and post exposure attitude scores from an advertising study involving 10

respondents. The data for the experiment are given in the following table. Assume that

the differences between the pairs of pre exposure and post exposure scores are normally

distributed. Set up the null and alternative hypothesis to establish that the advertisement

increases the mean attitude score. Use 5% level of significance.

Subject 1 2 3 4 5 6 7 8 9 10

Pre exposure attitude 50 25 30 50 60 80 45 30 65 70

Post exposure attitude 53 27 38 55 61 85 45 31 72 78

Q4. A marketing research firm wishes to compare the prices charged by two supermarket

chains Big Bazar and D-Mart. The research firm is using a standardized one-week

grocery purchase. Ten stores are randomly selected and purchases are made during a

single week. The shopping expenses are given the following table.

Store 1 2 3 4 5 6 7 8 9 10

Big Bazar 1192 1213 1223 1201 1221 1237 1217 1224 1236 1224

D-Mart 1119 1148 1151 1170 1168 1166 1153 1144 1139 1118

Test the hypothesis that mean weekly expenses at each chain is same at 5% level of

significance. Assume equality of population variances.

Section C: Solve any two problems (6 marks each)

Q5. Air Route Traffic Control Center, the busiest in the nation for guiding planes on cross

country routes has recorded the average weekly error as 0.4. Assuming the distribution of

number of errors per week to be Poisson, calculate the probability of

i) No error in a week.

ii) Three errors in a week.

Q6. ICICI bank wants to introduce some incentive for higher balance in saving accounts. A

random sample of 75 saving account holders at a banks branch was studied to estimate

the average monthly saving balance in saving bank account. The sample mean was found

to be Rs. 18,500. The population standard deviation was given to be Rs. 2300. Find 90%,

95% confidence intervals for the population mean.

Q7. The distance between the adjacent defects in woven cloth follows an exponential

distribution with mean of 2 meters. Find the probability that a random pair of adjacent

defects would be

i) Within 3 meters

ii) At least 4 meters apart

MIT School of Business (MITSOB)

Post Graduate Diploma in Management (PGDM)

33rd Batch

Semester I

Term End Examination

Subject: Statistics & Research Methodology (103)

Total Marks:- 50 Duration: - 2Hrs.

Instructions:

a) This is an open book examination. The text book Statistical tools for Managers by Prof.

(GP.Capt.) D.P. Apte, only can be used.

b) Use of MS Excel is allowed. No other program / software should be used.

c) Write answers with working formulae and numerical work in the answer books.

d) Write the steps used in calculations using MS Excel.

e) All sections are compulsory.

______________________________________________________________________________

Q1. Many Indians suffer from diabetes mellitus in which the sugar level in blood increases.

Diabetes mellitus is a cause of many system disorders and doctors prescribe drugs to

reduce the blood sugar levels. A pharmaceutical company Jeevan Pharmaceuticals has

assigned four teams to develop drug for reducing blood sugar level. Every team was

working for production of one drug. After all the teams completed the given project of

drug development, to determine whether any differences exist in their benefits, the

company conducted a clinical trial.

For this clinical trial, a team of investigators selected a total of sixty patients with high

level of blood sugar level. All the selected patients were randomly divided into four

groups and each group was given one drug. The drugs were administered for a month

and then the reduction in blood sugar was recorded. More the reduction in the blood

sugar level, better is the drug. The observations are as follows.

15 14 17 11

17 19 20 10

17 17 21 12

12 21 25 16

23 24 24 12

15 18 21 10

16 23 18 10

14 24 19 17

16 27 17 10

17 18 23 10

14 19 21 10

12 12 15 12

17 18 16 15

18 16 18 14

15 19 19 17

Set 2

i What is the average decrease in blood sugar level in four groups? What is the standard

deviation?

ii If the company wants to find whether all the four drugs are equally efficient which

statistical tool will you use? Can the pharmaceutical company conclude that all the four

drugs are giving similar benefit? Test at 5% level of significance.

iii Which are the pairs of drugs which can be used as substitutes of each other to get similar

results?

iv Which drug is better than others according to your analysis?

Q2. The Business Entrepreneur of Tasty Sub Shop wishes to predict yearly revenue for

potential Tasty Sub restaurant sites. He has collected the data concerning yearly revenue

(y) and The Business Entrepreneur of Tasty Sub Shop wishes to predict yearly revenue

for potential Tasty Sub restaurant sites. He has collected the data concerning yearly

revenue (y) and population size (x).

Restaurant 1 2 3 4 5 6 7 8 9 10

Population size 23 29 33 39 42 46 51 54 64 67

(Thousands of residents)

Yearly Revenue 53 558 777 732 836 820 1050 1043 1095 1245

(Thousands Rs.) 7

i) Find the correlation coefficient between the population size and the yearly revenue.

Comment on the basis of correlation coefficient.

ii) Find the regression equation to predict the yearly revenue for the given population

size.

iii) Estimate the yearly revenue if the population size is 38.3 thousand

Q3. A market research study is conducted to identify whether there exists a difference in pre

exposure and post exposure attitude scores from an advertising study involving 10

respondents. The data for the experiment are given in the following table. Assume that

the differences between the pairs of pre exposure and post exposure scores are normally

distributed. Set up the null and alternative hypothesis to establish that the advertisement

increases the mean attitude score. Use 5% level of significance.

Subject 1 2 3 4 5 6 7 8 9 10

Pre exposure attitude 55 30 35 55 65 85 50 35 70 75

Post exposure attitude 59 35 44 61 67 92 51 36 79 83

Q4. A marketing research firm wishes to compare the prices charged by two supermarket

chains Big Bazar and D-Mart. The research firm is using a standardized one-week

grocery purchase. Ten stores are randomly selected and purchases are made during a

single week. The shopping expenses are given the following table.

Store 1 2 3 4 5 6 7 8 9 10

Big Bazar 1292 3213 1323 1301 1321 1337 1317 1324 1336 1324

D-Mart 1219 1248 1251 1270 1268 1266 1253 1244 1239 1218

Test the hypothesis that mean weekly expenses at each chain is same at 5% level of

significance. Assume equality of population variances.

Section C: Solve any two problems (6 marks each)

Q5. The life of a bulb, manufactured by a company is normally distributed with a mean of

1600 hours and a standard deviation of 30 hours.

i) What percentage of bulbs are having the life less than 1550 hours.

ii) Find the minimum life of a bulb, if its quality is in top 10%.

Q6. ICICI bank wants to introduce some incentive for higher balance in saving accounts. A

random sample 64 saving account holders at a banks branch was studied to estimate the

average monthly saving balance in saving bank account. The sample mean was found to

be Rs. 18,500. The population standard deviation was given to be Rs. 2300. Find 90%,

95% confidence intervals for the population mean.

Q7. The length of time between breakdowns of a machine in a factory follows an exponential

distribution with a mean of 10 days.

i) What is the standard deviation of this distribution?

ii) The machine had a shut down on a day and was set right. What is the probability that

the next breakdown would occur within the next 14 days?

iii) Find the probability that the number of breakdowns in a month would be at most two.

MIT School of Business (MITSOB)

Post Graduate Diploma in Management (PGDM)

33rd Batch

Semester I

Term End Examination

Subject: Statistics & Research Methodology (103)

Total Marks:- 50 Duration: - 2Hrs.

Instructions:

a) This is an open book examination. The text book Statistical tools for Managers by Prof.

(GP.Capt.) D.P. Apte, only can be used.

b) Use of MS Excel is allowed. No other program / software should be used.

c) Write answers with working formulae and numerical work in the answer books.

d) Write the steps used in calculations using MS Excel.

e) All sections are compulsory.

______________________________________________________________________________

Q1. Many Indians females suffer from anemia in which the hemoglobin level in blood

decreases. Anemia is iron deficiency disease which is a cause of many system disorders.

Doctors prescribe drugs containing iron to increase hemoglobin level. A pharmaceutical

company Ayush Pharmaceuticals has assigned four teams to develop drug for

increasing hemoglobin level. Every team was working for production of one drug. After

all the teams completed the given project of drug development, to determine whether any

differences exist in their benefits, the company conducted a clinical trial.

For this clinical trial, a team of investigators selected a total of sixty patients with low

level of hemoglobin. All the selected patients were randomly divided into four groups and

each group was given one drug. The drugs were administered for a month and then the

increase in hemoglobin level was recorded. More the increase in the hemoglobin, better is

the drug. The observations are as follows.

1.2 1.4 1.4 0.6

0.8 1.3 1.5 0.6

0.9 1.2 1.2 0.7

1 0.9 1.2 0.5

1.2 0.9 1 0.7

1.3 0.8 1 1

0.8 1.1 1 0.7

0.7 1 0.9 0.8

0.6 1.1 0.9 0.7

0.8 1 1.1 0.5

0.6 0.9 1.2 1

0.8 0.7 1.2 1

0.9 1.2 1.4 0.8

1.1 1 1.2 0.6

1 1 1 0.7

Set 3

i What is the average increase in hemoglobin level in four groups? What is the standard

deviation?

v If the company wants to find whether all the four drugs are equally efficient which

statistical tool will you use? Can the pharmaceutical company conclude that all the four

drugs are giving similar benefit? Test at 5% level of significance.

ii Which are the pairs of drugs which can be used as substitutes of each other to get similar

results?

iii Which drug is better than others according to your analysis?

Q2. Enterprise Industries produces Fresh, a brand of liquid laundry detergent. In order to

manage its inventory more effectively and make revenue projections, the company want

to predict the demand for Fresh. The company has gathered the monthly data concerning

advertising expenditure on Fresh (x) and demand for Fresh (y), which is shown in the

following table.

Month 1 2 3 4 5 6 7 8 9 10

Advertising expenditure 5.5 6.7 7.2 5.5 7.0 6.5 6.7 5.2 5.3 6

for Fresh (thousand Rs.)

Demand for Fresh 738 851 952 750 933 828 875 787 710 800

(thousands of bottles)

i) Find the correlation coefficient between the advertising expenditure for Fresh and the

Demand for Fresh. Comment on the basis of correlation coefficient.

ii) Find the regression equation to predict the monthly demand for Fresh for the given

advertising expenditure.

iii) Estimate the monthly demand for Fresh if the advertising expenditure is 8 thousand

Rs.

Q3. National Paper Company is producing cardboard boxes using the machine. They want to

test the efficiency of their machine operators in the first shift and in the second shift. The

number of boxes produce per hour in the first and in the second shift by the same

operator are given in the following table. Test the hypothesis that the efficiency of the

operator is more in the first shift. Use 5% level of significance.

Machine operator 1 2 3 4 5 6 7 8 9 10

No. of boxes produced per 50 25 30 50 60 80 45 30 65 70

hour in the first shift

No. of boxes produced per 53 27 38 55 61 85 45 31 72 78

hour in the second shift

Q4. In a packing plant, a machine packs cartons with jars. It is supposes that a new machine

will pack faster on the average than the machine currently used. Test the hypothesis that a

new machine will pack faster on the average than the machine currently used. The results

are shown in the following table.

Packing time on New 45.1 44.3 45.4 46.2 44.8 44.0 44.8 45.8 45.3 45.7

machine (seconds)

Packing time on Old 43.7 46.8 45.5 46.1 47.0 46.6 46.3 46.5 44.7 47.1

machine (seconds)

Do the data provide sufficient evidence to conclude that, on the average, the new machine

packs faster? Perform the required hypothesis at the 5% level of significance.

Section C: Solve any two problems (6 marks each)

Q5. In a certain manufacturing process, 2% of the tools produced turn out to be defective.

Find the probability that in a sample of 100 tools, at least three will be defective,

assuming the distribution of number of defectives to be Poisson.

Q6. The life of a bulb, manufactured by a company is normally distributed with a mean of

1500 hours and a standard deviation of 35 hours.

i) What percentage of bulbs are having the life less than 1750 hours.

ii) Find the minimum life of a bulb, if its quality is in top 20%.

Q7. ICICI bank wants to introduce some incentive for higher balance in saving accounts. A

random sample 64 saving account holders at a banks branch was studied to estimate the

average monthly saving balance in saving bank account. The sample mean was found to

be Rs. 18,500. The population standard deviation was given to be Rs. 2300. Find 90%,

95% confidence intervals for the population mean.

MIT School of Business (MITSOB)

Post Graduate Diploma in Management (PGDM)

33rd Batch

Semester I

Term End Examination

Subject: Statistics & Research Methodology (103)

Total Marks:- 50 Duration: - 2Hrs.

Instructions:

a) This is an open book examination. The text book Statistical tools for Managers by Prof.

(GP.Capt.) D.P. Apte, only can be used.

b) Use of MS Excel is allowed. No other program / software should be used.

c) Write answers with working formulae and numerical work in the answer books.

d) Write the steps used in calculations using MS Excel.

e) All sections are compulsory.

______________________________________________________________________________

Q1. Analgesic drug is a drug which is used to get relief from pain. Various types of

analgesics with various range (mild to strong) are produced by pharmaceutical

companies. Patients require different analgesics depending on the reason. Doctors

prescribe analgesic drugs for various reasons depending on severity of pain. The patients

operated for bone fractures require strong analgesics. A pharmaceutical company Ayush

Pharmaceuticals has assigned four teams to develop analgesic drugs for pain relief.

Every team was working for production of one analgesic. After all the teams completed

the given project of drug development, to determine whether any differences exist in their

benefits, the company conducted a clinical trial.

For this clinical trial, a team of investigators selected a total of sixty patients who are

operated for bone fracture. All the selected patients were randomly divided into four

groups and each group was given one analgesic drug. The drugs were administered on

the second day after surgery when the pain is severe. The number of hours the patient

gets relief from the analgesic was recorded. More the number of hours of relief, better is

the analgesic drug. The observations are as follows.

6 12 7 6

8 10 7 6

5 11 8 7

9 9 9 7

9 9 8 7

10 8 9 10

8 12 10 7

7 11 10 8

8 10 9 7

10 10 10 6

9 12 8 9

10 10 10 9

9 11 8 8

11 10 9 6

10 8 10 7

Set 4

i What is the average hours of relief in four groups? What is the standard deviation?

ii If the company wants to find whether all the four drugs are equally efficient which

statistical tool will you use? Can the pharmaceutical company conclude that all the four

drugs are giving similar benefit? Test at 5% level of significance.

iii Which are the pairs of drugs which can be used as substitutes of each other to get similar

results?

iv Which drug is better than others according to your analysis?

Q2. Enterprise Industries produces Fresh, a brand of liquid laundry detergent. In order to

manage its inventory more effectively and make revenue projections, the company want

to predict the demand for Fresh. The company has gathered the monthly data concerning

advertising expenditure on Fresh (x) and demand for Fresh (y), which is shown in the

following table.

Month 1 2 3 4 5 6 7 8 9 10

Advertising expenditure 6.5 6.7 5.2 5.3 6 6.5 6.3 7.0 6.9 6.8

for Fresh (thousand Rs.)

Demand for Fresh 828 875 787 710 800 790 815 910 889 890

(thousands of bottles)

i) Find the correlation coefficient between the advertising expenditure for Fresh and the

Demand for Fresh. Comment on the basis of correlation coefficient.

ii) Find the regression equation to predict the monthly demand for Fresh for the given

advertising expenditure.

iii) Estimate the monthly demand for Fresh if the advertising expenditure is 8 thousand

Rs.

Q3. National Paper Company is producing cardboard boxes using the machine. They want to

test the efficiency of their machine operators in the first shift and in the second shift. The

number of boxes produce per hour in the first and in the second shift by the same

operator are given in the following table. Test the hypothesis that the efficiency of the

operator is more in the first shift. Use 5% level of significance.

Machine operator 1 2 3 4 5 6 7 8 9 10

No. of boxes produced per hour in 60 35 40 60 70 90 55 40 75 80

the first shift

No. of boxes produced per hour in 63 37 48 65 71 95 55 41 82 88

the second shift

Q4. In a packing plant, a machine packs cartons with jars. It is supposes that a new machine

will pack faster on the average than the machine currently used. Test the hypothesis that a

new machine will pack faster on the average than the machine currently used. The results

are shown in the following table.

Packing time on New machine 42.1 41.3 42.4 43.2 41.8 41.0 41.8 42.8 42.3 42.7

(seconds)

Packing time on Old machine 42.7 43.8 42.5 43.1 44.0 43.6 43.3 43.5 41.7 44.1

(seconds)

Do the data provide sufficient evidence to conclude that, on the average, the new machine packs

faster? Perform the required hypothesis at the 5% level of significance.

Q5. Statistical Quality Control and Improvement department in Software Company is monitoring

the number of errors in the software. Suppose the number of errors per 1000 lines of

computer code follows Poisson distribution with a mean of four errors per 1000 lines of

computer code.

i) Find the probability of at least 2 errors per 1000 lines of computer code.

ii) Find the probability that the given 1000 lines of computer code is free from error.

Q6. The yearly health care expenses for a family of four persons are normally distributed with

a mean expense equal to 18000 Rs. and a standard deviation of 3000 Rs. An Insurance

company want to know

i) What is the probability that the yearly healthcare expenses for a family exceeds

25000 Rs.

ii) What is the amount such that the families are having their yearly healthcare expenses

less than that amount with probability 0.33?

Q7. ICICI bank wants to introduce some incentive for higher balance in saving accounts. A

random sample 64 saving account holders at a banks branch was studied to estimate the

average monthly saving balance in saving bank account. The sample mean was found to

be Rs. 18,500. The population standard deviation was given to be Rs. 2300. Find 90%,

95% confidence intervals for the population mean.

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