VIDYASAGAR UNIVERSITY

Directorate of Distance Education

M.A. /M. Sc./M.Com. Part-I Examinations 2021
Subject: COMMERCE
Paper: DCOM 102 (New Syllabus)
(Business Statistics,)
Full Marks: 40 Time: 4 hours
(Combinedly for DCOM 101 & DCOM 102)
Answer any two of the following questions: 20x2
Q1. (a) Give the classical definition of probability. What is conditional and unconditional
probability?
(b) There are two boxes. Box-1 contains 8 red and 6 white balls and Box-2 contains 6 red
and 4 white balls. A boy draws a ball from the first box and puts it into the second without
noting its color. If you draw one ball at random from the second box, then what is the
probability that your chosen ball is red?

(c) A box contains 40 envelopes, of which 25 are ordinary (not meant for air-mail), and 16
are unstamped, while the number of unstamped ordinary envelopes is 10. What is the
probability that an envelope chosen from the box is a stamped air-mail?
[5+6+6+3]
(d) State the limitations of relative frequency approach of probability.

Q2. (a) Distinguish between ‘correlation’ and ‘regression’. Write down the limitations of the
measure of correlation.

(b) State the important properties of simple regression.

(c) The following table shows the sales and advertisement expenditure (in Rs. Crore) of a
firm for a particular period.

Mean Standard Dev.

Sales 40 10
Advertisement Exp. 6 1.5

Coefficient of correlation between the variables is r = 0.9.

Estimate the likely sales of the firm for a proposed advertisement expenditure of Rs. 10 crore.
(d) What is rank correlation? When is it used? [6+5+5+4]

Q3. (a) (i) Given the following Parabolic equation

Y= a+1.6 t+.8t2 (Origin: year 2015 and t unit=1 year)

Shift the origin to the year 2021

(ii) You are given the following annual Parabolic equation

Y=a+3.6t + .24 t2 (where Y= Annual Sales; t unit=1 year)

Convert the above equation into monthly form

(b) The Sales of a company for last eight years are as follows:

Year: 2014 2015 2016 2017 2018 2019 2020 2021

Sales 52 45 98 92 110 185 175 220

(Rs. ‘000)

Fit a Straight line equation from the above data using least square method and estimate the
sales for the year 2022.
(2+2)+(8+2)
(c) What do you mean by time series? Mention the chief components of time series. State two
+(2+2+2)
uses of Seasonal indices.

Q4. (a) Mathematically show that Fisher’s Price Index formula lies between Laspeyer’s and
Paasche’s price index formulae.

(b) Briefly explain the Time Reversal and Factor Reversal tests in Index number

(c) Calculate the price index numbers by (i) Paasche’s method, (ii) Laspeyres’ method, (iii)
Drobish-Bowleys method, (iv) Fisher’s ideal formula

2016 2021

Commodities Price (Rs.) Quantity (Kg.) Price (Rs.) Quantity (Kg.)

A 20 8 40 6

B 50 10 60 5

C 40 15 50 10

D 20 20 20 15

(d) Suppose the wholesale price index series are given with two different base years as
follows:

Year Index No. (Base year 2013=100) Index No. (Base year 2018=100)

2015 111 -

2016 113 -

2017 116 -

2018 120 100

2019 - 112

2020 - 122

2021 - 138 [4+4+8+4]

Splice both the series with base year 2017.

Q5. (a) Define Interpolation and Extrapolation

(b) Use Newton’s forward interpolation formula to find y when x=12 from the following
table:

X: 10 15 20 25 30 35

Y: 35.4 32.2 29.1 26.0 23.1 20.4

(c) What do you mean by association of attributes? Construct a 2x2 contingency table for
establishing association between two attributes.

(d) Can vaccination be regarded as preventive measure for Corona from the data given
below? Use Yule’s Coefficient of association. [2+8+4+6]

Of 1482 persons in a locality exposed to Corona, 368 in all were attacked. Of 1482
persons, 343 had been vaccinated and of these only 35 were attacked.