SINHGAD INSTITUTE OF BUSINESS MANAGEMENT, MUMBAI

END TERM EXAMINATION

Class : MMS Semester : I

Subject: Business statistics Date : 5/12/2019

Time : 1pm-4pm Marks:60

Instructions : _

 Q1 is Compulsory 20 marks and solve any 4 from Q2 to Q7 10 marks

 Scientific Calculators are allowed
 F, normal, chi square Distribution tables are allowed and will be given

Question 1

a)Calculate the median for following data:

Size of the item Frequency

Below 50 15
50-100 20
100-150 36
150-200 40
200 & above 10

b)Find the range for the following frequency distribution Also find the coefficient of range

Size of item Frequency

20-40 7
40-60 11
60-80 30
80-100 17
100-120 5
Total 70

c)Given the values of β1 & β2 are 1 and 4 respectively,Find values of μ3 and μ4 and comment on
the natire of distribution

d)Define Quadratic mean and solve with one example

Q2 Attempt only 2 out of 3 Subparts total 10 marks:

a) Suppose we have a box with 3 rd,2 black and 5 white bottles each time a bottle is drawn
it is returned to box. What is probability of drawing ?

i)Wither a red or black bottle

Ii)Either a white or black bottle.

b) find Binomial distribution to following data :-

X 0 1 2 3 4
F 28 62 46 10 4

c) As a result of tests on 20000 electric bulbs manufactured by company ,it was founded that
the lifetime of bulbs was normally distributed with an average life of 2040 hours and
standard deviation of 60 hours. On the basis if the information estimates the number of bulbs
that are expected to burn between a)2040 & 2150 hours b) 1960 and 2040 hours

Q3 Attempt only 1 from Subparts total 5 marks :

a)An auditor picked up 400 purchase orders out of a file using a table of random numbers
to assure simple random sample .If the properties of last years’s population of purchase
order (avg amt of order is rs 3570,SD rs 1380)still hold true ,what is probability that avg
order size for sample of 400 will exceed 3680?

b)A random sample of 100 discs is taken from a production line which produces discs
having mean =120 gm and SD as 16 gm .Find the probability that the sample mean will
be i)greater than 124 gm, and ii)between 118 & 121.6 gm

Q4 Attempt only 1 out of 2 Subparts total 5 marks:

a) Realfacts a research firm provides monthly mean apartment rental cost for metropolitan
city .Assume the population SD is $220 & desired margin of error is $50.
i)What is recommended sample size for 90% confidence interval estimate of the
population mean rental cost ?
ii) What is recommended sample size for 95 % confidence interval?
iii) What is recommended sample size for 99 % confidence interval?
 iv)If the desired margin error is fixed, what happens to sample size as the confidence
interval is increased ?

b)A leading business magazine reports that 51 % of the hedge fund managers expected
revelations of failure and scandal to hit their industry in certain year. Assume that this
statistics is based on random sample of 100 hedge fund manageres.Construct a 99 %
confidence interval of al hedge fund managers who had this belief.

Q5 Attempt any 1 out of 2 Subparts total 10 marks:

a) A dairy advertises that a tub of ice cream produces on an average 80 scoops.Suspectiing

the claim made by company an ice cream seller who buys wholesale from this dairy
found 60 tubs selected randomly from his purchase that an average 78.8 scoops was
obtained. The SD of sample tubs was found as equal to 4.4 scoops. Carry out one tail
test at α=0.01 to establish who is correct .Would you conclude differently if level of
significance were 0.05 instead? What is p value for computed statistics?

b) Suppose that tireless tyre company has historically held 42 % of the market for
automobile tyre in India. Recent changes in company operations, specially its
diversification to other areas of business ,as well as changes in competing firm’s
operations, prompt company to test validity of assumption that it still holds 42 % of the
market. Random sample of 550automobbiles on the road shows that 219 of them, have
Tireless tyres.State null and alternate hypothesis .Conduct at α=0.01

Q 6 Attempt only 1 out of 2 Subparts total 5 marks

a)A new vaccine for seasonal flu was tested on 300 person .Out of them the vaccine was actually
administered on 200 and the rest were given placebos. The results were recorded as follows

No of person who got vaccine No of person who got placbos

Got infected 23 39
Did not got infected 177 61
Test at 0.01 level of significance wether vaccine will be effective in preventing seasonal flu

b)In trivariate direction it is found that the value r12=0.8,r13=0.6,r23=0.5.

Calculate partial & multiple correlation
Q 7 Attempt only 1 out of 2 Subparts total 5 marks;

a)The information about sales turnover &advertising expenditure

data mean Standard deviation

Advertising expenditure in 10 3
lakhs
Sales turn over in crores 90 12
Coefficient of correlation 0.8
Obtain two regression equation.
Estimate the likely sales turnover when adv. Budget is rs 15 lakhs
b)Calculate the three coefficient of multiple correlation using following inputs
r12=0.70,r13=0.61,r23=0.40
c)a student calculate the value of r as 0.7 when the value of n is 5 & concludes that this
coefficient is highly significant .Is he