Quantitative Methods for Management

ASSIGNMENT Answer all the questions Max. Marks: 40

1. At one of the Management Institutes, a sample of 55 second Year MBA students was
selected, and information gathered relating to their age, background of graduation, work
experience prior to joining MBA, CGPA score at the end of First Year, and area of
specialization are indicated in the file management.xls:

a. Present the above data with the help of tables, charts and graphs.

b. Calculate the measures of location and dispersion of CGPA, age and work experience for all
backgrounds and specializations. Combine these measures, wherever possible, for all the
backgrounds and specializations separately. Discuss the findings.

c. Study and comment on correlations between CGPA and age for students of all backgrounds
viz. commerce, science etc.,

d. Summarize your findings and present a managerial report. 15 MARKS

2. Olive Construction Company is determining whether it should submit a bit for a new
shopping centre. In the past, Olive’s main competitor, Base Construction Company, has
submitted bids 70% of the time. If Base Construction Company does not bid on a job, the
probability that Olive Construction Company will get the job is 0.50. If the Base Construction
Company bids on a job, the probability that Olive Construction Company will get the job is
0.25.
a. If Olive Construction Company gets the job, what is the probability that Base
Construction Company did not bid?
b. What is the probability that Olive Construction Company will get the job? 10
MARKS

3. An investor is concerned with the market return for the coming year, where the
market return is defined as the percentage gain ( or loss, if negative) over the year.
The investor believes there are five possible scenarios for the national economy in the
coming year- rapid expansions, moderate expansions, no growth, moderate
contractions and serious contraction. Furthermore, she has used all of the information
available to her to estimate that the market returns for these scenarios are, respectively
23%, 18%,15%,9% and 3% .Also she has assessed the probabilities of these outcomes
are 0.12, 0.40,0.25, 0.15 and 0.08. Use this information to describe the probability
distribution of the market return. Calculate, average return, standard deviation and
variance of the probability distribution of the market return for the coming year and
comment. 5 MARKS
 4. An American consumer organization is currently examining the relationship among
several variables including gasoline mileage as measured by miles per gallon; the
horsepower of the car’s engine and the weight of the car (in pounds). A sample of 50
recent car models was selected and the results recorded. (provided in auto.xlxs)

(a) Using the sample data attached, calculate the sample mean and standard deviation for
the variables: -
1. Miles per gallon (MPG)
2. Horsepower
3. Weight (in pounds)
(b) Is there any evidence of skewness in the data sets? Which data set displays greatest
skewness?

(c) Using the sample data on MPG, calculate the sample proportion of vehicles whose fuel
economy exceeds 37 mpg and its corresponding standard deviation.

(d) Indicate all possible relationship between the variables and comment on it. (You may
use scatter diagram or Karl Pearson’s correlation coefficient)
(e) Using the complete data set and using simple ordinary least squares regression
formulae develop two models to explain the behavior of gasoline mileage (Miles per
gallon) as a function of their-
(i) Horsepower
(ii) Weight

f. Which model best describes the behavior of gasoline mileage? Explain your reasons here.

10 MARKS

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