1. (a) The no. of employees in two branches, say A and B, of a company are 80 and 65 respectively.

The average
salary of employees in branch A is OMR 875 and branch B is OMR 1260. Calculate combined average of salary of
the two branches.

Ans. Recall that, If x1 , x2 be the means of two samples of size n1, and n2 , then the mean x of the combined sample

of size n1, + n2 is given by x =( n1, x1 + n2 x 2 )/( n1, + n2 ) For n1, x1 =sum of all observations of the first sample which is

in this example n1, =80 and x1 = OMR 875= 80 * 875=

OMR 70000, Similarly, n2 x 2 = 65* 1260= OMR 81900 and n1, + n2 = 80+65=145

Therefore, Mean of the Combined salary of two branches= (70000+81900)/145= 151900/145 = 1047.58 OMR

(b) The standard deviation of the salaries of the employees in branch A is 100 and that of branch B is 175. Calculate the
coefficient of variation of branch A and branch B.

Answer. Given that SD for branch A is called  1 =100 and x = OMR 875. So, the coefficient of variation for branch A=  1

/ x * 100 = (100 *100)/875= 11.42 %

The coefficient of variation for branch B=  2 / y *100 = [175*100]/1260 = 13.89 %

( c) Since the coefficient of variation of A < the coefficient of variation of B it means that salary given to employees of
branch B is more than that of employees of branch A

2. The coefficient of correlation between the sales and advertisement expenditure of a firm was found to be +0.9,
the average sales are OMR 40000 and advertisement expenditure is OMR 6000. Their standard deviations were
10000 and 1500 respectively.
(a) Obtain, the two regression equations.
Ans. Given that, coefficient of correlation r=+0.9. The average sales are OMR 40000 i.e. x = OMR 40000  x
=10000
And y = OMR 6000 and  y =1500

Now the equation of the line of regression of y on x is y- y = r  y /  x (x- x )

(y- 6000)= 0.9 *1500/10000 (x-40000)
=0.135 (x-40000) so, y= 0.135(x-40000) + 6000=0.135 x -5400+6000= 0.135x+600
y= 0.135x+600………………….. (1)
Also, the equation of the line of regression of x on y is (x- x ) = r  x /  y (y- y )
(x-40000)= 0.9 *10000/1500 (y – 6000) = 6 (y-6000) = 6y-36000
x= 6y-36000+40000= 6y +4000
x= 6y + 4000………………………… (2)
(b) Estimate the likely sales for a proposed advertisement expenditure of OMR 10000
When advertisement expenditure is =OMR 6000 then sales is =OMR 40000
Then proposed advertisement expenditure of OMR 10000 then sales is = (10000*40000)/6000= 66666 OMR
(c) When sales is= OMR 40000 then advertisement expenditure is =OMR 6000
Therefore sales is= OMR 60000 then advertisement expenditure is= (60000*6000)/40000= OMR 9000
3. The Frequency distribution of daily sales for Nizwa Traders is shown below
 Daily sales in OMR No. of days i.e. frequency
100-150 4
150-250 12
250-300 10
300-400 28
400-450 12
450-500 16
500-550 12
550-600 6

Answers of (a) and (b) is given in separate paper.

(c) Estimate the mean and standard deviation from the above frequency table showing all workings.
Answer The calculations are arranged in the table below:
Daily sales in Mid value No. of days i.e. f*x xi  x ( xi  x)2
OMR frequency
100-150 125 4 500 -254 64516
150-250 200 12 2400 -179 32041
250-300 275 10 2750 -104 10816
300-400 350 28 9800 -29 841
400-450 425 12 5100 46 2116
450-500 475 16 7600 96 9216
500-550 525 12 6300 146 21316
550-600 575 6 3450 196 38416
 f =100  fx =37900 ( x  x)2
i
=179278

Therefore mean=  fx /  f =37900/100= 379

Mean x = 379
We have n=8 and ( xi  x)2 =179278. Variance= 22409.75
And standard deviation= var iance = 22409.75 =149.69
4. At Max departmental stores all formal wear was reduced by 15% and casual wear was reduced by 25% from
the retail price.
If Mr.Ali purchased formal wear and casual wear that was originally retailed for OMR 80 and OMR 125
respectively.
(a) Find the amount he gained through reduction of retail price.
Ans. Here, given that discount of 15% in formal wear and discount of 25% in casual wear. If Mr. Ali purchased
formal wear and casual wear that was originally retailed for OMR 80 and OMR 125 respectively.
Formal wear price after discount= 80-80*15/100= 80-12= OMR 68
Casual wear price after discount= 125- 125*25/100=OMR 93.75
Total cost price= 68+93.75= OMR 161.75
Original price=80+125= 205 Amount gained=205-161.75= OMR 43.25
(b) What is the bill amount he actually he had to pay?
Formal wear price after discount= 80-80*15/100= 80-12= OMR 68
Casual wear price after discount= 125- 125*25/100=OMR 93.75
Total cost price= 68+93.75= OMR 161.75
(c) As a privileged customer he got an additional discount of 10 % on the bill amount. How much did he have to
pay?
 As on ( b) total bill amount is OMR 161.75 discount is 10% . So, now Mr. Ali has to pay 161.75-161.75*10/100=
OMR 145.57

(d) Find the percentage he gained all together.

The actual retail price was OMR 205. The price after all discounts is OMR 145.57. So, total benefit is= 205-
145.57= OMR 59.43. The retail price is 205 then benefit=100

Price is 59.43 then benefit= 59.43*100/205= 29 %

5. (a) A bag contains 2 left handed and 7 right handed gloves. If two gloves are randomly selected, one after
another, with replacement, what is the probability that both gloves are right handed?
There are 9 gloves in the bag out of which 2 gloves can be chooses 9C2 =36 ways
There are 7 right handed gloves out of which 2 gloves can be drawn in 7C2 = 21 ways
So, required Probability= 21/36= 7/12.

(b) Give an example of two events that are

(I) independent, but not mutually exclusive.
A single card is drawn from an ordinary deck. Then we define the following events
S={ Spade is obtained} H={ Heart is obtained } A={ Ace is obtained}, D={ S H }
P( S A )=1/52= P(S) P(A)=[(1/3)(1/4)]
(II) Not independent but mutually exclusive
P( S H )=0  P(S) P(H)
(III) Neither independent nor mutually exclusive.
P( S D )=P(S)=1/4 and P(S) P(D)=(1/4)(1/2)=1/8