SET A

Unique Paper Code: 12481302

Name of the Paper: Statistics for Business Economics

Name of the Course: B. A. (Hons.) Business Economics, 2021 (New CBCS)

Semester: III

Duration: 3 hrs

Maximum Marks: 75

Instructions for Candidates

1. Attempt any four out of the given six questions. All questions carry equal marks.
2. Use of simple calculator is allowed. Required statistical tables are attached with this paper.
3. All parts of the question must be done together.

1. a) Given the following sample data: 590 820 570 610 350 1280 410 540 555 680 630 1310

(i) Calculate and interpret the sample mean and median.

(ii) Suppose the 6th observation had been 980 rather than 1280. How would the mean and median
change?
(iii) Calculate a 15% trimmed mean.

(b) Calculate mean and standard deviation of the first n natural numbers.
(c) The noise level experienced by 500 employees in a production unit has the following distribution:

Noise level 8-11 11-16 16-19 19-25 25-40 40-65

No. of 90 160 100 70 60 20
employees

(i) Construct a histogram corresponding to this frequency distribution and comment on the shape of the
distribution?
(ii) What proportion of employees experience a noise level less than 25?

2. a) If A and B are two events associated with an experiment and P(A) = 0.4, P (A ∪ B) = 0.7 and
P(B) = p, find:
(i) the choice of p for which A and B are mutually exclusive
(ii) the choice of p for which A and B are independent.

b) An urn contains 4 Red, 3 White and 2 Blue balls. A person draws 4 balls without replacement. What
is the probability that amongst the balls drawn at least one ball of each colour?

c) Consider the sample space S = {copper, sodium, nitrogen, potassium, uranium, oxygen, zinc} and
the events
A = {copper, sodium, zinc}, B = {sodium, nitrogen, potassium}, C = {oxygen}.
List the elements of the sets corresponding to the following events:
(i) A' (b) A ∪ C (ii) (A ∩ B') B'∪ C' (ii) B' ∩ C' (iv) A ∩ B ∩ C
3. a) A manufacturing process produces on the average 1.2 defects per 100 units of output and the
number of defects follows a Poisson distribution.
(i) What is the probability that the next 500 units show less than three defects.
(ii) Probability between 2 and 3 defects.

b) The breakdown voltage of a randomly chosen diode of a certain type is known to be normally
distributed with mean value 40 V and standard deviation 1.5 V.
(i) What is the probability that the voltage of a single diode is between 39 and 42?
(ii) What value is such that only 15% of all diodes have voltages exceeding that value?

c) If X is a continuous random variable with probability density function:

𝐾𝑥(𝑥 − 3) 0≤ 𝑥≤3
𝑓(𝑥) = {
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
(i) Find the value of K and P (1 ≤ X ≤2)
(ii) Find E (X)

4. a) The number X of days in the summer months that a construction crew cannot work because of the
extreme weather has the probability distribution as given below:

X 6 7 8 9 10 11 12 13 14
P(X) 0.03 0.08 0.15 0.2 0.19 0.16 0.1 0.07 0.02

Construct the Cumulative Distributive Function (cdf) of the probability mass function given above
and calculate:
(i) The probability that no more than ten days will be lost next summer.
(ii) The probability that from 8 to 12 days will be lost next summer.

b) The cumulative distribution function of X is as follows:

0 𝑥<0
0.06 0≤𝑥<1
0.19 1≤𝑥<2
0.39 2≤𝑥<3
F(x) = 0.67 3≤𝑥<4
0.92 4 ≤𝑥<5
0.97 5≤𝑥<6
1 𝑥≥6
{
(i) Find probability distribution function of X.
(ii) Compute P (2 ≤ X ≤ 5) and P (X > 3).
c) Consider the following joint probability mass function of X and Y:

P(X,Y) Y
5 10 15
X 1 1/9 1/9 0
2 1/6 2/9 1/6
3 0 0 2/9

(i) Are X and Y independent?

(ii) Find P(X+Y) >12.

5. a) If the joint probability density of X and Y is given by:

2𝑥 + 𝑦
𝑓(𝑥) = { 4 , 0 < 𝑥 < 1, 0 < 𝑦 < 2
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒

Find (i) the marginal density of Y and X

(ii) Are X and Y independent?

b) A particular brand of dishwasher soap is sold in three sizes: 25 kg, 40 kg, and 65 kg. Twenty percent
of all purchasers select a 25-kg box, 50% select a 40-kg box, and the remaining 30% choose a 65-kg
box. Let X1 and X2 denote the package sizes selected by two independently selected purchasers.
(i) Determine the sampling distribution of 𝑋̅ and calculate E (𝑋̅).
(ii) Determine the sampling distribution of the sample variance.

c) Assume that the helium porosity (in percentage) of coal samples taken from any particular seam is
normally distributed with true standard deviation 0.75.
(i) Compute a 98% CI for the true average porosity of a certain seam if the average porosity for 40
specimens from the seam was 4.85.
(ii) How large a sample size is necessary if the width of the 95% interval is to be 0.40?

6. a) (i) A stenographer claims that she can take dictation at the rate of 120 per minutes. Can we reject
her claim on the basis of 100 trials in which she demonstrates a mean of 116 words per minute with a
standard deviation of 15 words per minute? Test the above hypothesis at 5% level of significance.
(ii) In 16 one-hour test runs, the gasoline consumption of an engine averaged 16.4 gallons with a
standard deviation of 2.1 gallons. Test the claim that the average gasoline consumption of this type of
engines is more than 16 gallons per hour 1% level of significance. Also calculate the P-value of the test
statistics.
b) Let the test statistic Z have a standard normal distribution when H0 is true. Calculate the significance
level for each of the following situations:
(i) Ha: µ > µ0, rejection region z ≥ 1.78
(ii) Ha: µ < µ0, rejection region z ≤ -2.45
(iii) Ha: µ ≠ µ0, rejection region z ≥ 2.25 or z ≤ - 2.25
c) A man buys 100 electric bulbs of A make and another 100 of B make. He finds that A make bulbs
give an average life of 1300 hours with a standard deviation of 82 hours. The B make bulb gives an
average of 1248 hours with a standard deviation 93 hours. Is there a significant difference between the
two makes? Test the above hypothesis at 5% level of significance