Seat No: ______________ Enrollment No: ______________

PARUL UNIVERSITY
FACULTY OF MANAGEMENT
Winter 2015 Examination
Semester: I Date: 06/01/2016
Subject Code: 06200103 Time: 2 p.m to 5 p.m
Subject Name: Business Statistics Total Marks: 60

Instructions:
1. Attempt all questions from each section.
2. Figures to the right indicate full marks.
3. Make suitable assumptions wherever necessary.
4. Write separate sections on separate answer sheets.
SECTION-A
Q.1 (a) (3)
MCQ’s(One Mark Each)
[1] A Financial Stock Analyst notes down the Stock prices of four companies as “ Rs.
250, Rs. 300, Rs. 432 and Rs. 123.50 “. He also ranks these companies as “No. 3, No.
2, No. 1 and No. 4 “ respectively. Then the level of data given in order (share
prices and Rank of the companies) are :
(a) Ratio and Interval
(b) Ratio and Ordinal
(c) Interval and Nominal
(d) Ratio and Nominal

[2] As per Empirical Rule, for Normal distribution, the percentage of data, that lies
within one standard deviations of the mean is about:
(a) 75%
(b) 68%
(c) 99.7%
(d) 89%

[3] Which of the following is not a pair of quantitative charts?

(a) Histogram and Frequency Polygon
(b) Pie-Chart and Pareto Chart
(c) Histogram and O-Give Curve
(d) Scatter Plot and Linear X-Y Plot

Q.1 (b) Define or Briefly Explain: (3)

[1] Percentile Measures
[2] Skewness
[3] Mutually Exclusive Events

Q.2 Convergys BPO – a small call center located in Bangalore has collected the following (8)
data for the number of calls made by its Tele-Sales Executives in a 15 minute interval.
Assume these to be a Population Data.

Number of Calls Frequency Of Occurrence

0 – under 10 4
10 – under 20 10
20 – under 30 6

In order to take some decisions for improving the call frequency, it has hired you as
an analyst. Help the firm by finding the following statistical measures:
[I] The mean number of calls in the given interval.
[2] The Variance of the calls
[3] The Standard deviation of the calls
[4] The Coefficient of Variation for the calls

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Q.3 (a) What are Discrete Distributions? Explain in short Binomial distribution with an (4)
example.

Q.3 (b) AC Nielsen a Market research firm asked in its survey of graduate students: “Which (3)
Career would you be most interested in”. The survey results for this question have been
cross-tabulated as follows, for the Career choice and the Geographical area of the
graduate student. (figures in cells indicate number of students in that category)

North South

Law 9 11

Management 20 30

Engineering 5 10

If a student is randomly selected from this survey result:

[1] What is the Probability that the student is either belonging to North or is interested
in Management Career?
[2] What is the Probability that the student is both interested in Engineering and
belongs to South?
[3] If it is known that the student is interested in Law, then what is the probability that
he belongs to North?
OR
Q.3 (a) Research and in particular Business Research requires that proper data be gathered from (4)
the Population of interest for some analysis so that conclusion based on that analysis is
made. However, it is not feasible to take the entire population data for number of
reasons and Sample data is a better way of addressing this concern.
In this context discuss Simple Random Sampling Technique?

Q.3 (b) The HR Department of an IT Major – Indian Business Machines (IBM-S), is known for (3)
its rigorous interview process. It is known from past company data that, on an average
10% of the candidates in a given interview are selected. If on a given day there are 5
candidates waiting to be interviewed, then find:
[1] The probability that exactly 3 of these candidates will be selected.
[2] The probability that at the most two of these candidates will be selected.

Q.4 A Small Excerpt from a Caselet: Torrent Power Ltd. (9)

Torrent Power is an electric Power supplier in the AUDA area of Ahmedabad. It had a
satisfied residential Customers till the last year, however this year a small industrial
unit has come up in this area; which is consuming a lot of power and causing power
outages in the residential areas, but the resident’s main complaint is that of overbilling.
A researcher is hired by the company.
The researcher notes that the mean electricity bill of a household from the past several
years’ records is Rs. 3000 with a standard deviation of Rs. 600. Further the monthly
bill follows a Bell Shaped - Normal Distribution. For some preliminary analysis, help
the researcher, find the Probability that:
[1] A randomly chosen customer’s electricity bill is between Rs. 3000 and Rs. 3600?
[2] A randomly chosen customer’s electricity bill is greater than or equal to Rs. 4000?
[3] A randomly chosen customer’s electricity bill is between Rs. 2700 and 2900?

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 SECTION B
Q.1 (a) MCQ’s(One Mark Each) (3)
[1] A statistical test generally used to compare more than two population means for
Parametric data is
(a) Chi-Square test
(b) Runs Test
(c) Z-Test
(d) ANOVA

[2] A Time Series data has one of the following as its components:
(a) Seasonal Variations
(b) Cyclical Variations
(c) Irregular Variations
(d) All of these
[3] The Pearson Product Moment Correlation Coefficient for two variables “X” and
“Y” is known to be “--0.98”, then which of the following is true?
(a) X and Y have a weak direct correlation
(b) X and Y have a strong direct correlation
(c) X and Y have a weak inverse correlation
(d) X and Y have a strong inverse correlation

Q.1 (b) Define and/or Briefly Explain: (3)

[1] F-Distribution
[2] Chi-Squared test of Goodness of Fit
[3] Index Numbers

Q.2 According to the data released by the Transport and Logistics Corporation of India, a (8)
question arises whether the transportation mode used to ship goods is independent of the
type of Industry. Suppose that the following contingency table represents frequency
counts of types of transportation used by the Textile Industries, and the Electronics
Industries.
Type of Industry
Textile Electronics
Air Transportation 20 80
Truck Transportation 60 30

Analyze the data by using the Chi-Square test of independence to determine whether the
type of industry is independent of transportation mode. Use Alpha = 0.05

Q.3 (a) BP Petroleum is a global leader in the field of Crude oil refining and produces different (4)
petroleum products from its refineries across the globe. It is planning to expand in the
offshore areas of British Isles, a region in the Atlantic Ocean. It has conducted pilot study
of drilling the oil and subsequent prototype manufacturing facilities for the petroleum
products. This trial run they have conducted for feasibility and scaling decisions. The
results from the past months of production are given as below.

Production Month Production (’00 tons)

1 12
2 18
3 22
4 25
5 32

Develop a simple linear regression model that fits this data.

Q.3 (b) List down four Non-Parametric tests and Briefly write about the Runs Test. (3)

OR

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Q.3 (a) A Junior Researcher collects the following data from a sample of Tea or Coffee drinkers. (4)
He notes down his observations as T – for Tea drinkers and C – for coffee drinkers, as
follows:

TCCCCCTCCTCCCCTCTCCCTTTCCC

Test the above sequence of data using the “Runs Test” at ALPHA =0.05, to determine
whether the process of selecting the sample of drinkers produced random results?

Q.3 (b) Explain the Moving average method of smoothening the time series data. (3)

Q.4 A Small Excerpt from a Caselet: Corporate Training Consultants (CTC) Ltd. (9)

CTC LTd. is a management training consultancy, which presents a two days training on
“Advanced Management Techniques” to corporate clients. The training is basically the
same each time it is given. However, sometimes it is presented to Top Level Executives,
sometimes to Mid-Level Executives and sometimes to Lower – Level executives
respectively. The trainers at CTC Ltd. believe that evaluation of the training outcomes
of the executives may vary with the type of executives.

Suppose the following data are some randomly selected evaluation scores from different
levels of executives who attended the training.

TOP LEVEL MID LEVEL LOW LEVEL

9 9 4
7 10 7
7 9 6
10 8
8

Given that ratings are on a scale from 1 to 10, with 10 being the highest, then; Use a
one-way ANOVA and answer the following questions:

[1] State the Hypothesis for the Problem stated by the CTC Ltd. Trainers
[2] Find the Observed F- Value
[3] Test the Hypothesis by comparing Observed F-value with critical F-value. (Given
Alpha = 5%)