Institute of Rural Management Anand

Course Name: BSA Quiz 2 (Open Book) PRM41(2020-22)

Date: 10/10/2020 Term – I Roll No.______________

Name: _________________________________________ Section: ______________

Duration of Exam:45 Minutes___ _ Total Marks: 20 Weightage:15 percent

Instructions:

• Write your personal details (i.e. Roll No., Name, and Section) in your answer-
sheet.
• Read the question carefully and answer accordingly.
• Clearly specify the question number which you are answering (No need to copy
questions in document).
• Save your word document (answer sheet) containing your final answers as a PDF
file.
• Upload the PDF file to LMS to fully complete your submission.

Answer the following questions.

1. The Students of RIM (Rural Management Institute) have been entrusted an internship task
by the Gujarat State Government. The task is to estimate the mean food expenditure of the
population of Anand District. The students meticulously construct the sampling frame and
draw a random sample of size 3000. They survey the sampled respondents on their food
consumption patterns. When the monthly food consumption of the sampled respondents is
plotted on a histogram, it presents itself as highly skewed. The students are a worried lot.
The reason for their worry is mainly that the central limit theorem for estimating confidence
intervals for the population mean cannot be applied. A student remarks, “maybe it is the
sample size! Though we learnt that sample sizes like 3000 are large, it may not be large
enough! Let us draw more samples. Then the histogram may appear more like a normal
distribution.”

Are the students correct? What needs to be done to estimate the true mean and generate
confidence intervals of say, 95% for it? (Four marks)

2. A random sample of size 15 has been drawn from a normally distributed population. The
variable studied is time taken for women of a rural area to fetch water. The sample mean is
 220 minutes and the sample standard deviation (denominator is n-1) is 35 minutes. You are
required to find
i. 90% confidence interval for the population mean.
ii. 95% confidence interval for the population mean.

Can we use the central limit theorem in this context? Why or why not? What could be an
alternative to the normal distribution? Clearly explain the approach used by you. (Six marks)

3. State with reason whether the following statementsare true or false: (Each carries Three
marks)
i. Simple random sampling is always the best method of sampling to adopt for survey
research because the sample is both random and representative.
ii. While computing confidence interval for the population proportion P, we can use the
sample proportion phat, in place of the unknown P.

4. If the true population parameter lies within a 99% confidence interval, then it will definitely
lie within a 95% confidence interval and vice versa. Comment on the statement with
appropriate justifications. (Four marks)