DECISION SCIENCE ASSIGNMENT

Answer 1 :

1. What is the probability that a randomly selected person has said “yes, I like Kyuki…”?
a. To calculate this probability, we look at the number of people who said "Yes I like
Kyuki…”, which is 30, and divide it by the total number of people, which is 50.

Probability = (Number of people who said "Yes I like Kyuki…") / (Total number of
people)

Probability = 30 / 50 = 0.6

Interpretation: The probability that a randomly selected person says "Yes, I like
Kyuki" is 0.6 or 60%.

2. What is the probability that a randomly selected person has said “I don’t like Kyuki…”?

a. To calculate this probability, we look at the number of people who said "I don’t like
Kyuki…”, which is 20, and divide it by the total number of people, which is 50.

Probability = (Number of people who said "Yes I like Kyuki…") / (Total number of
people)

Probability = 20 / 50 = 0.4

Interpretation: The probability that a randomly selected person says "Yes, I like
Kyuki" is 0.4 or 40%.

3. What is the probability that a randomly selected person has said “yes, I like
Anupama…”?

a. To calculate this probability, we look at the number of people who said "yes, I like
Anupama…”, which is 20, and divide it by the total number of people, which is
50.

Probability = (Number of people who said "Yes I like Kyuki…") / (Total number of
people)

Probability = 30 / 50 = 0.6

Interpretation: The probability that a randomly selected person says "Yes, I like
Kyuki" is 0.6 or 60%.
4. What is the probability that a randomly selected person has said “ I don’t like
Anupama…”?
a. To calculate this probability, we look at the number of people who said "yes, I like
Anupama…”, which is 0, and divide it by the total number of people, which is 50.

Probability = (Number of people who said "Yes I like Kyuki…") / (Total number of
people)

Probability = 20 / 50 = 0.4

Interpretation: The probability that a randomly selected person says "Yes, I like
Kyuki" is 0.4 or 40%.

5. What is the probability that a randomly selected person has said ‘like Anupama’, also
said ‘like kyuki….’ prior to that?
a. Probability of saying "Like Anupama" and "Like Kyuki" :

To calculate this probability, we look at the number of people who said "Yes" and
like both Anupama and Kyuki, which is 25, and divide it by the total number of
people, which is 50.

Probability = (Number of people who said "Yes" and like both Anupama and
Kyuki) / (Total number of people)

Probability = 25 / 50 = 0.5

Interpretation: The probability that a randomly selected person says "Like

Anupama" and "Like Kyuki" is 0.5 or 50%.

6. What is the probability that a randomly selected person has said ‘like Kyuki….’, also said
“don’t like Anupama” prior to that?
a. Probability of saying "Like Kyuki" and "Don't like Anupama" :

To calculate this probability, we look at the number of people who said "Yes" and
like Kyuki but don't like Anupama, which is 5, and divide it by the total number of
people, which is 50.

Probability = (Number of people who said "Yes" and like Kyuki but don't like
Anupama) / (Total number of people)

Probability = 5 / 50 = 0.1

Interpretation: The probability that a randomly selected person says "Like Kyuki"
and "Don't like Anupama" (in that order) is 0.1 or 10%.
Answer 2 :

Let's analyze the given correlation coefficients and interpret the relationships between the
variables based on these correlations.

1. Urban No. of Bank Offices and Urban Amount Credit: 0.7080534508

2. Urban No. of Bank Offices and Urban Amount Deposit: 0.8174662878
3. Urban No. of Bank Offices and Urban No. of Accounts: 0.9844236488
4. Urban Amount Credit and Urban Amount Deposit: 0.9044499009
5. Urban Amount Credit and Urban No. of Accounts: 0.7796741479
6. Urban Amount Deposit and Urban No. of Accounts: 0.8189124465

1. Urban No. of Bank Offices and Urban Amount Credit (Correlation: 0.708):
The correlation coefficient of 0.708 suggests a moderately positive linear relationship between
the number of urban bank offices and the amount of credit extended in urban areas.

As the number of bank offices increases, there tends to be a corresponding increase in the
amount of credit extended. This correlation indicates that regions with more bank offices also
experience higher credit demand, possibly due to improved accessibility and availability of
financial services.

2. Urban No. of Bank Offices and Urban Amount Deposit (Correlation: 0.817):
The correlation coefficient of 0.817 signifies a strong positive linear relationship between the
number of urban bank offices and the amount of deposits in urban areas.

This suggests that as the number of bank offices increases, there is a substantial increase in the
amount of deposits. This correlation might indicate that more bank offices cater to the deposit
preferences of urban customers, leading to enhanced deposit accumulation.

3. Urban No. of Bank Offices and Urban No. of Accounts (Correlation: 0.984):
The high correlation coefficient of 0.984 indicates a very strong positive linear relationship
between the number of urban bank offices and the number of accounts opened in urban areas.

As the number of bank offices increases, there is a nearly one-to-one increase in the number of
accounts. This correlation suggests that the establishment of more bank offices facilitates higher
accessibility to banking services, thus encouraging more people to open accounts.

4. Urban Amount Credit and Urban Amount Deposit (Correlation: 0.904):

The correlation coefficient of 0.904 denotes a strong positive linear relationship between the
amount of credit extended in urban areas and the amount of deposits.
This indicates that regions with higher credit exposure also tend to have higher deposit
amounts. This correlation could imply that customers with substantial credit utilization often
maintain higher deposits, possibly for managing their financial commitments.

5. Urban Amount Credit and Urban No. of Accounts (Correlation: 0.780):

With a correlation coefficient of 0.780, there is a moderately positive linear relationship between
the amount of credit extended in urban areas and the number of accounts opened.

As credit utilization increases, the number of accounts tends to rise, albeit not as strongly as in
the previous correlation. This could suggest that credit utilization might influence account
openings, but other factors might also play a role.

6. Urban Amount Deposit and Urban No. of Accounts (Correlation: 0.819):

The correlation coefficient of 0.819 indicates a strong positive linear relationship between the
amount of deposits and the number of accounts opened in urban areas. As the deposit amounts
increase, the number of accounts also tends to increase significantly.

This could be due to the fact that higher deposit amounts might encourage more individuals to
open accounts for managing their savings.

In conclusion, these correlations reveal valuable insights into the relationships among variables
in the urban banking context. More urban bank offices are associated with increased credit
extension, deposit accumulation, and account openings. Additionally, higher credit utilization
seems to be related to higher deposit amounts and a moderate influence on account openings.

The above analysis demonstrates how correlations offer insights into the complex dynamics of
urban banking variables and the states they are associated with. These correlations allow us to
observe trends and patterns that contribute to our understanding of customer behaviors and the
impact of banking services on credit, deposits, and account openings. It's essential to remember
that correlations provide statistical insights but do not explain causation, which requires more
in-depth analysis and consideration of various factors.

Answer 3A:

Given:

Total number of big IT companies in Maharashtra: 20

Number of companies in Mumbai: 15
Number of companies outside Mumbai: 20 - 15 = 5
We want to find the probability that at least two companies in a sample of 3 are from Mumbai.

To calculate this, we need to consider two cases:

● Exactly 2 companies are from Mumbai.
● All 3 companies are from Mumbai.
Let's calculate the probabilities for each case:

● Probability of exactly 2 companies from Mumbai:

This can happen in three different ways: MMN, MNN, or NMM (where M represents
Mumbai and N represents outside Mumbai).

Probability of MMN = (15/20) * (15/20) * (5/20)

Probability of MNN = (15/20) * (5/20) * (15/20)
Probability of NMM = (5/20) * (15/20) * (15/20)

Total probability of exactly 2 companies from Mumbai = Probability of MMN + Probability

of MNN + Probability of NMM

● Probability that all 3 companies are from Mumbai:

This can happen as MMM.

Probability of MMM = (15/20) * (15/20) * (15/20)

Now, we add up the probabilities from both cases to get the total probability that at least
two companies are from Mumbai:

Total probability = Probability of exactly 2 companies from Mumbai + Probability of all 3

companies from Mumbai

Finally, calculate the total probability.

Let's perform the calculations:

Probability of exactly 2 companies from Mumbai:

Probability of MMN = (15/20) * (15/20) * (5/20) = 0.140625
Probability of MNN = (15/20) * (5/20) * (15/20) = 0.140625
Probability of NMM = (5/20) * (15/20) * (15/20) = 0.140625

Total probability of exactly 2 companies from Mumbai = 0.140625 + 0.140625 + 0.140625 =

0.421875

Probability that all 3 companies are from Mumbai:

Probability of MMM = (15/20) * (15/20) * (15/20) = 0.421875
Total probability = 0.421875 (exactly 2 companies) + 0.421875 (all 3 companies) = 0.84375

Interpretation: The probability that at least two companies are from Mumbai when randomly
selecting 3 companies from the big IT sector in Maharashtra is approximately 0.84375 or
84.375%.

Answer 3B :

Wheat Cultivation Area Trend: The cultivation area for wheat appears to be on the rise across
the years. The data reflects a consistent upward trajectory from 1965-66 to 2020-21, with
occasional fluctuations.

Coarse Cereals Cultivation Area Trend: Conversely, the cultivation area for coarse cereals
demonstrates a somewhat diminishing trend over the years. The values generally show a
decline from 1965-66 to 2020-21, interspersed with periodic variations.

Interpretation of Correlation: Drawing from the observed trends, an inference can be made
about a negative correlation between the wheat and coarse cereals cultivation areas. As the
cultivation area for wheat expands, there is a tendency for the cultivation area of coarse cereals
to decrease, and vice versa.

This interpretation finds its basis in the consistent pattern where the enlargement of wheat's
cultivation area is associated with a reduction in the area allocated for coarse cereals. Multiple
factors, such as shifts in agricultural methodologies, shifts in market demand, governmental
policies, and farmers' crop preferences, could account for this phenomenon.
Hence, the suspected correlation type between the wheat and cereals' cultivation areas leans
toward the negative correlation.