Business Analytics

Mid Term Examination

Total Marks: 20
Duration: 40 minutes

Q1. Because of different sales ability, experience, and devotion, the incomes of real estate agents vary
considerably. Suppose that in a large city the annual income is normally distributed with a standard
deviation of $15,000. A random sample of 16 real estate agents was asked to report their annual income (in
$1,000). The responses are listed here. Determine the 99% confidence interval estimate of the mean annual
income of all real estate agents in the city. (Annual income of respondents in thousand dollars: 65, 94, 57,
111, 83, 61, 50, 73, 68, 80,93, 84, 113, 41, 60, 77) (5 marks).
Q2. The Westview High School nurse is interested in knowing the average height of seniors at this school,
but she does not have enough time to examine the records of all 430 seniors. She randomly selects 48
students. She finds the sample mean to be 64.5 inches and standard deviation to be 2.3 inches.
a) Find the estimated standard error of the mean. (2 marks)
b) Construct a 90 percent confidence interval for the average height of seniors. (3 marks)
Q3. RSPL Group is more than 5500 crore diversified conglomerate, which is committed to value for money
propositions and credited with several innovations over last 3 decades. Keeping in view the expanding
market of personal & home care products in India, the company has set up a unit in Haridwar for the
manufacturing of products like Shampoo, Hair oil, Toothpaste, Moisturizer, Shaving Cream, Liquid Hand
Wash, Floor Cleaner, Liquid Detergent and Toilet Cleaner. The Unit has become operational in March 2010
with an installed capacity of 123 MT per day for all products taken together.
Deovoyatsanaa Divyaa Das (DDD) has been appointed as a business manager (Marketing) of RSPL
Limited, a consumer non-durables firm, in the ‘premium soap’ division. As she has never been to this
division, she wants to know the perception of the consumers on the product of the firm and to identify
various important features which influence the buying behavior of the customer while purchasing the
premium soaps. Help DDD in the business research to solve the management decision problem by
answering the following questions:
a) Define research questions and research objectives to solve the business research problem. (2
marks)
b) Formulate the research design to conduct the research. (2 marks)
c) Help DDD in the market research by formulating a questionnaire to achieve the research objectives
stated above. Also indicate the type of measurement scales and techniques used against each
question. (4 marks)
d) Suppose DDD must draw a sample of 20 students out of 3000 students using systematic sampling
techniques for her pilot study. However, sampling frame consists of only 300 students. How should
she go about it? Help her in reporting the respondents’ numbers of one of the possible samples. (2
marks)