Register Number

SATHYABAMA UNIVERSITY
(Established under section 3 of UGC Act,1956)
Course & Branch :M.B.A - MBAP
Title of the Paper :Statistics for Management Max. Marks :80
Sub. Code :SMTX5003(2012) Time : 3 Hours
Date :21/03/2014 Session :FN
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PART - A (8 x 5 = 40)
Answer any EIGHT Questions
1. What is correlation? Point out the significance of its study to the
students of Business Administration.

2. Calculate the coefficient of correlation for the following heights

(in inches) of fathers (x) and their sons (y).
x: 65 66 67 67 68 69 70 72
y: 67 68 65 68 72 72 69 71
3. State Baye’s theorem and also give its uses.

4. Define binomial distribution and state its mean and variance.

5. Define normal distribution and state its importance in Business.

6. A simple sample of heights of 6,400 Englishmen has a mean of

170cm and a standard deviation of 6.4cm, while a simple sample
of heights of 1600 Americans has a mean of 172cm and a
standard deviation of 6.3cm. Do the data indicate that Americans
are on the average, taller than Englishmen?

7. A certain stimulus administered to each of 12 patients resulted in

the following increase of blood pressure
5 , 2, 8, -1, 3, 0, -2, 1, 5, 0, 4, and 6
 Can it be concluded that the stimulus will, in general, be
accompanied by an increase in blood pressure?

8. A brand manager is concerned that her brand’s share may be

unevenly distributed throughout the country. In a survey in which
the country was divided into four geographic regions, a random
sampling of 100 consumers in each region was surveyed, with the
following results
REGION
NE NW SE SW Total
Purchase the brand 40 55 45 50 190
Do not purchase 60 45 55 50 210
Total 100 100 100 100 400
Develop a table of observed and expected frequencies for this
problem.

9. Describe the advantages and disadvantages of nonparametric

methods.

10. Describe multiple regression analysis.

11. Derive the coefficient of multiple correlation.

12. From the data relating to the yield of dry bark (X 1), height (X2)
and girth (X3) for 18 cinchona plants the following correlation
coefficients were obtained: r12 = 0.77, r13= 0.72 and r23 = 0.52.
Find the coefficient of partial correlation r 12.3 and coefficient of
multiple correlation R1.23.

PART – B (4 x 10 = 40)
Answer Any FOUR Questions

13. In a partially destroyed record the following data are available.

 Variance of x = 25, Regression equation of x on y: 5x – y = 22
and
Regression equation of y on x: 64x – 45y = 24.
Find (a) mean values of x and y
(b) coefficient of correlation between x and y
(c) standard deviation of y.

14. (a) In a bolt factory, machines A, B and C manufacture

respectively 25%, 35 %, and 40% of the total of their output, 5%,
4% and 2% are defective bolts. A bolt is drawn at random from
the product and is found to be defective. What are the
probabilities that it was manufactured by machines A, B and C?
(6)
(b) A is known to hit the target in 2 out of 5 shots, where as B is
known to hit the target in 3 out of 4 shoots. Find the probability
of the target being hit when they both try. (4)

15. Four different manufacturing processes were tried at three

different stations and the average measurements of quality
characters of the product by these processes are given in the
following table. Perform an analysis of variance of the data and
test for the difference between the processes.
Processes
Station A B C D
1 7 14 11 11
2 15 16 14 10
3 8 15 10 12

16. Two methods of instruction to apprentices is to be evaluated. A

director assigns 15 randomly selected trainees to each of the two
methods. Due to drop outs, 14 complete in batch 1 and 12
complete in batch 2. An achievement test was given to these
successful candidates. Their scores are as follows:
Method I : 70, 90, 82, 64, 86, 77, 84, 79, 82, 89, 73, 81, 83, 66
 Method II : 86, 78, 90, 82, 65, 87, 80, 88, 95, 85, 76, 94
Test whether the two methods have significant differences in
effectiveness. Use Mann-Whitney test at 5% significance level.

17. A company’s trainees are randomly assigned to groups which are

taught a certain industrial inspection procedure by 3 – different
methods. At the end of the instruction period they are tested for
inspection performance quality. The following are their scores.
Method A : 80 83 79 85 90 68
Method B : 82 84 60 72 86 67 91
Method C : 93 65 77 78 88
Use Kruskal Wallis H test to determine at the 0.05 level of
significance whether the three methods are equally effective.

18. Explain the concept of cluster analysis.