INDIAN INSTITUTE OF MANAGEMENT RANCHI

MBA Programme

MID-TERM EXAMINATION

TITLE OF THE COURSE – Business Statistics

TERM:- Mid-Term (Open Book) Marks: 50

Time: 90 minutes.

INSTRUCTIONS

1. The answer must be precise and to the point. Think and then write
2. Write your answer as per the given question sequence
3. Show each step of the calculation

Q1) [ Marks: 10 ]

What is a contingency table? When do we use this table? What are the advantages of
using contingency tables in data analysis?

Q2) [ Marks: 10 ]

What is your understanding of Spurious or False correlation? Give one such example
which was not discussed in the class.

Description of Problem 1 [ Marks: 5×2 = 10 ]

A cosmetics salesperson, who calls potential customers to sell her products, has
determined that 30% of her telephone calls result in a sale.

Q3) Determine the probability distribution for her next three calls. Note that the next
three calls could result in 0, 1, 2, or 3 sales.

Q4) Draw the above probability distribution using a diagram

1
Description of Problem 2 [ Marks: 5×2 = 10]

The current demand for cars in Ranchi city follows Normal distribution with mean value
30 and standard deviation of 10. Answer the following questions.

Q5) What is the probability that the car demand will be 20% lower than the current
mean demand?
Q6) There is a 1% chance that new demand will be less than equal to the current mean
demand. What is the new demand?

Description of Problem 3 [ Marks: 5×2 = 10 ]

The average time a machine works properly before a major breakdown is exponentially
distributed with a mean value of 100 hours.

Q7) What is the probability that the machine will function between 50 and 150 hours
without a major breakdown?
Q8) The machine works 100 hours without a major breakdown. What is the probability
that it will work another extra 20 hours properly?

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