Exams SPRING-2020

Paper: BUSINESS MATHEMATICS & STATISTICS : FINAL TERM

Class: M.com Semester-2 Shift: Weekend

Instructor
Max Marks: 35
Name: M.Azhar
Time: 6 hours
Student
Name: Tahir Abbas Reg No. 12005

Note:
Q1. MCQs: Circle the correct answer to the following (1*5=5)

1). Sum of deviation from mean is always:

a) Negative b) Positive d) Fractional
c) Zero

2). A simple linear regression model contains:

a) One variable b) Two c) Three variable d) Four variable

variables

3).The list of sampling unit is called:

b) Sampling
a) sample design b)frame c) population d)sample

4).The procedure of selecting a representative sample from the population:

a) probability b) population c) Sampling d) none of these

5). A sample is a small part of

a) Sampling b)b)population
Population c) unit d) error

Q 2 Write short answer to the following. (2*5=10)

1) Find mean and median of the data. 8,12,0,5,14,16,20,10,14,16.

Solution
 8+12+0+5+14 +16+20+10+ 14+16
x́=
10
ΣX 115
Mean = so x̄ = 11.50
n 10
Median average of the middle two numbers.
First arrange in ascending orders
So 0, 5,810,12,14,14,16,16,20

Middle Numbers are 12, 14

12+14 26
Median = , Median is x̄ =13
2 2

2) Define regression and correlation.

Answer
Definition of Regression
Regression is a statistical measurement used in finance, investing, and other disciplines that attempts
to determine the strength of the relationship between one dependent variable
Definition of Correlation
A statistical measure which determines the co-relationship or association of two quantities is known
as Correlation

3) Distinguish between sampling with replacement and without replacement?

Answer
When we sample with replacement, the two sample values are independent. Practically, this means
that what we get on the first one doesn't affect what we get on the second. Mathematically, this
means that the covariance between the two is zero.
In sampling without replacement, the two sample values aren't independent

4) Distinguish between probability sampling and non-probability sampling?

Answer
Probability sampling is used when the research is conclusive in nature. On the other hand, when the
research is exploratory, nonprobability sampling should be used. The results generated by probability
sampling, are free from bias while the results of non-probability sampling are more or less biased

5) Write down the properties of regression.

Answer
There are five types of the regression their properties are as follows

Linear Regression

Polynomial Regression

Ridge Regression

Lasso Regression
Elastic Net Regression

Properties of the regression

Regression is a technique used to model and analyze the relationships between variables and often times how
they contribute and are related to producing a particular outcome together
When we want to create a model that is suitable for handling non-linearly separable data, we will need to use
a polynomial regression.
A standard linear or polynomial regression will fail in the case where there is high collinearity among the
feature variables. Collinearity is the existence of near-linear relationships among the independent variables
Lasso Regression is quite similar to Ridge Regression in that both techniques have the same premise. We are
again adding a biasing term to the regression optimization function in order to reduce the effect of collinearity
and thus the model variance.
Elastic Net is a hybrid of Lasso and Ridge Regression techniques. It is uses both the L1 and L2 regularization
taking on the effects of both techniques

Q 3 Solve the following questions. (2*10=20)

1. The following table gives the marks of students:

Marks 30 – 39 40 – 49 50 – 59 60 - 69 70 – 79
f 8 87 190 86 20
Compute Median and Mean of the Data.

Solution
Mean
C_L f X fx
30-39 8 34.5 276
40-49 87 44.5 3871.5
50-59 190 54.5 10355
60-69 86 64.5 5547
70-79 20 74.5 1490
Total Σ 391 21539.5

Σf X 21539.5
x̄ = , x̄ = , x̄ = 55.08
Σf 391
 Now The Calculation of the Median As we know that
h n
Median = l+ ( −F )
f 2
So
C_L f CB Cf
30-39 8 29.5-39.5 8
40-49 87 39.5-49.5 95
50-59 190 49.5-59.5 285 Median Group
60-69 86 59.5-69.5 371
70-79 20 69.5-79.5 391
TotalΣ 391

h n
Median = l+ ( −F )
f 2
10 391
 x͂ = 49.5+ 190 ( 2 −95)
x͂ = 49.5 + 0.0526(100.5)
x͂ = 49.5+5.2863
x͂ = 54.7863

2. Determine the regression line Y on X. also compute trend values.

Height 72 66 67 69 71 61 66 62 70 63
(inches) xi
Weight 178 141 158 165 180 133 159 140 160 136 The Calculation of the regression
(pounds)yi line Y on X and trend value
As we know that

Y = a + bx

So first of all we calculate a and b then Y

n Σxy−ΣxΣy
Where b =
n Σ x 2−(Σ x)2

a= ý−b x́
 n Σxy−ΣxΣy
b=
n Σ x 2−(Σ x)2
,
10 ( 103928 ) −(667)(1550)
10 ( 44621 )−( 667 ) 2

1039280−1033850
b=
446210−444889
5430
b = 1321
b = 4.11
Now a
a= ý−b x́
a= 155-4.11(66.7) , a = 155-274.137 , a = 119.17

Trend value ~y = a + bx

Trend
= a + bx Value
-119.137+4.11x72 176.92
-119.137+4.11x66 152.26
-119.137+4.11x67 156.37
-119.137+4.11x69 164.59
-119.137+4.11x71 172.81
-119.137+4.11x61 131.71
-119.137+4.11x66 152.26
-119.137+4.11x62 135.82
-119.137+4.11x70 168.7
-119.137+4.11x63 139.93