Midterm Examination- September 2021

Data Analysis for Management-I

PGDM, Trimester-I
Time: 10:18 AM – 11:30 AM
11 September 2021

(Each question Carries 10 Marks)

Answer all the questions

1. Suppose that you are facing a decision about where to invest that small fortune that remains after you
have deducted the anticipated expenses for the next year from the earnings from a big lottery. A friend
has suggested two types of investment, and to help make the decision you acquire some rates of return
from each type. You would like to know what you can expect by way of the return on your investment,
as well as other types of information, such as whether the rates are spread out over a wide range (making
the investment risky) or are grouped tightly together (indicating relatively low risk). Do the data indicate
that it is possible that you can do extremely well with little likelihood of a large loss? Is it likely that you
could lose money (negative rate of return)?

Apply the measures of descriptive analysis, plots, and comparison etc. to interpret your report. The
Dataset is attached and named as Data_Q_1.

2. The method of instruction in college and university for Data Analysis courses is changing. Historically,
most courses were taught with an emphasis on manual calculation. The alternative is to employ a
computer and a software package to perform the calculations. An analysis of a data analysis course
investigated whether the instructor’s educational background is primarily data analysis related or some
other field. The result of this analysis is the accompanying table of joint probabilities.

Educational Background Method of Instruction

Manual Calculations Through use of computers
and software
Data Analysis Related 0.23 0.36
Other 0.11 0.30

i. What is the probability that a randomly selected course instructor whose education was in
data analysis related emphasizes manual calculations?
ii. What proportion of data analysis courses employ a computer and software?
iii. Are the educational background of the instructor and the way his or her course is taught
independent?

3. As part of a project to develop better lawn fertilizers, a research chemist wanted to determine the mean
weekly growth rate of Kentucky bluegrass, a common type of grass. A sample of 250 blades of grass
was measured, and the amount of growth in 1 week was recorded. Assuming that weekly growth is
normally distributed with a standard deviation of .10 inch. Data attached as Data_Q_3.

i. Find sample mean and standard deviation of the distribution. Verify the spread.
ii. What is the chance that the sample mean will be close to +0.25 and -0.15 of the population
mean of 0.75.
iii. At 05% probability what will be range of sample means within which the above population
mean will lie.
iv. What is the probability that the sample mean will be between 0.23 to 0.65?

Best of Luck