QUANTITATIVE METHODS FOR MANAGEMENT

(JANUARY-MARCH 2021)

ASSIGNMENT Answer all the questions Max. Marks: 40

Students may use any statistical software to solve the assignment. (Minitab, Excel, SPSS, SAS,R,.)

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. The collected data is given below:

No. CGPA Background Specialisation Work Experience Age (in years)

1 3.24 Commerce Finance 2 23
2 3.14 Commerce Finance 1 21
3 3.72 Commerce Finance 2 23
4 3.06 Commerce Finance 4 21
5 3.14 Commerce Finance 2 22
6 3.14 Commerce Finance 1 23
7 3.06 Commerce Finance 0 22
8 3.17 Commerce Finance 3 21
9 2.97 Commerce Finance 2 22
10 3.14 Commerce Finance 4 23
11 3.69 Commerce Finance 4 24
12 2.85 Commerce Finance 3 25
13 2.92 Commerce Marketing 2 23
14 2.79 Commerce Marketing 3 25
15 3.22 Commerce Marketing 2 22
16 2.87 Commerce Marketing 2 22
17 3.14 Commerce Marketing 1 22
18 3.17 Commerce Marketing 1 23
19 3.22 Economics Finance 3 26
20 2.58 Economics Finance 2 25
21 3.36 Economics Finance 2 22
22 3.17 Economics Marketing 1 21
23 2.59 Economics Marketing 2 24
24 2.97 Engineer Human Resources 8 31
25 2.92 Engineer Marketing 5 23
26 3.03 Engineer Marketing 3 23
27 2.79 Engineer Marketing 2 25
28 2.77 Engineer Marketing 3 23
 29 2.97 Engineer Marketing 3 25
30 3.11 Engineer Marketing 3 27
31 3.33 Engineer Marketing 1 24
32 2.65 Engineer Marketing 2 23
33 3.14 Engineer Marketing 2 24
34 2.97 Engineer Marketing 2 23
35 3.39 Engineer Marketing 2 24
36 3.08 Engineer Marketing 3 23
37 3.3 Engineer Marketing 6 27
38 2.94 Engineer Marketing 3 24
39 3.25 Engineer Marketing 2 23
40 3.14 Engineer Systems 3 23
41 3.36 Engineer System 4 26
42 2.95 Information Finance 2 24
43 2.98 Technology Finance 5 23
44 2.82 Information Marketing 1 24
45 2.98 Information Marketing 5 26
46 3.33 Information Marketing 2 24
47 2.96 Information Marketing 4 27
48 3.67 Information System 2 25
49 3.22 Science Finance 2 25
50 3.14 Science Finance 3 22
51 3.17 Science Finance 4 26
52 3.25 Science Resources 0 21
53 3. 10 Science Marketing 2 22
54 2.85 Science Marketing 3 24
55 3.25 Science Marketing 2 22

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.

2. Corporate share repurchase programs are often touted as a benefit for shareholders. But
Robert Gabele, director of insider research for First Call/ Thomson Financial, noted that many
of these programs are undertaken solely to acquire stock for a company’s incentive options
for top managers. Across all companies, existing stock options in 1998 represented 6.2 per
cent of all common shares outstanding. The following data show the number of shares
 covered by option grants and the number of shares outstanding for 13 companies ( Bloomberg
personal Finance, January/February 2000)

Shares of option Grants Common shares outstanding

Outstanding ( millions) X (millions) Y
Adobe Systems 20.3 61.8
Apple computers 52.7 160.9
Applied materials 109.1 375.4
Autodesk 15.7 58.9
Best Buy 44.2 203.8
Fruit of the Loom 14.2 66.9
ITT Industries 18.0 87.9
Merril Lynch 89.9 365.5
Novell 120.2 335.0
Parametric Technology 78.3 269.3
Reebok International 12.8 56.1
Silicon Graphics 52.6 188.8
Toys “R” Us 54.8 247.6

a. Develop the estimated regression equation that could be used to estimate the number of shares
of option grants outstanding given the number of common shares outstanding.
b. Use the estimated regression equation to estimate the number of shares of option grants
outstanding for a company that has 150 million shares of common stock outstanding.
c. Do you believe the estimated regression equation would provide a good prediction of the
number of shares of option grants outstanding? Use r 2 to support your answer.
d. What is the value of sample correlation coefficient?

3. 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?

4. Data indicates that the time to download check$mart’s home page is normally distributed with
mean 7 seconds and standard deviation of 2 seconds.
a. what is the probability that the download time will be more than 9 seconds
b. what is the probability that the download time will be between 7 and 9 seconds
c. what is the probability that the download time is under 7second or over 9 seconds
d. what is the probability that the download time will be between 5 and 9 seconds
e. what is the probability that the download time is less than 3.5 seconds
f. How much time ( in seconds) will elapse before 10% of the download are complete.
g. What are the Upper Limit and Lower limit of X , located symmetrically around the mean,
which include 95% of the download times
ALL THE BEST