AHK/KW/19/6697

Master of Business Administration (M.B.A.) Semester—I (Outcome Based C.B.C.S.) Examination

BUSINESS STATISTICS AND ANALYTICS FOR DECISION MAKING
Paper—6
Time : Three Hours] [Maximum Marks : 80

N.B. :— (1) All questions are compulsory.

(2) All questions carry equal marks. (16 marks each)

1. (A) Mr. Sharma is considering investing his savings in two proposals A and B. He wants to
choose the one that has higher average net present value (NPV) and lower standard deviation.
The relevant data are given as follows. Which proposal would you suggest ?
Proposal A :
NPV Possible Outcome
1559 0.30
2800 0.20
2862 0.20
9175 0.30
Proposal B :
NPV Possible Outcome
– 5000 0.15
5812 0.40
20,584 0.30
– 5050 0.15
OR
(B) The following data shows the lunch time of employees in a factory in minutes :
30 35 35 40 40 40 45 45 45 45 50 50
50 50 50 55 55 55 55 55 55 60 60 60
60 60 65 65 65 65 70 70 70 75 75 80
Calculate the range, Median interquartile range and interpret your results.
2. (A) Explain the types of correlation between two variables with the help of graphs. What do
you mean by partial and multiple co-relation coefficients ? What are the limitations of
simple co-relation ?
OR

CC—13349 1 (Contd.)
 (B) Use least squares regression line to estimate the increase in sales revenue due to an increase
of 10% in sales promotion expenses.
Annual % Increase Annual % Increase
in Sales Promotion Expenses in Sales Revenue
1 1
3 2
4 2
6 4
8 6
9 8
11 8
14 9
3. (A) A giant advertisement screen installed at the railway station displays total 10 ads. When the
visitor comes to the console he clicks to see the advertisement. Out of the total 2500 visitor,
at the railway station, 30 visitors clicked on one ad, 15 clicked on 2 ads while 5 clicked
on three ads. Rest of the visitors did not click on any ads. Under these conditions estimate :
(1) Probability that the visitor will click on any of the advertisements.
(2) Probability that any visitor will click on at least two of the advertisements.
(3) Probability that any visitor will not click on any of the advertisements.
OR
(B) A market research firm is interested in surveying certain attitudes in a community. There are
125 households broken down according to income, ownership of a washing machine and
micro oven.
Household monthly Household monthly Total
income 80,000/- or less income above 80,000/-

Micro oven No Micro oven Micro oven No Micro oven

Washing Machine 27 20 18 10 75

No Washing Machine 18 10 12 10 50

Total 45 30 30 20 125

(i) What is the probability of getting a Micro oven owner in a random draw ?
(ii) If a household has income above 80,000/- and is a micro oven owner, what is the
probability that he owns a washing machine ?
(iii) What is the conditional probability of drawing a household that owns a washing
machine, given that the household is a micro oven owner ?
(iv) Are the events ownership of washing machine and micro oven owner, statistically
independent ? Comment.

CC—13349 2 AHK/KW/19/6697
4. (A) Explain the concept of Hypothesis with a couple of examples. Write down the hypothesis
test procedure for taking a decision. Also explain what are Type 1 and Type 2 errors and
power of a Statistical Test.
OR
(B) Starmax Corporation wants to do the training impact analysis for the training given to their
employees. The organization conducted a survey to this effect to find out the effectiveness
of training comprising of 487 samples. The sample consisted of executives, supervisors and
workers. The results are tabulated as under :
Executives Supervisors Workers Total
Effective 95 55 42 192
Effective to some extent 89 49 32 170
Not at all Effective 76 36 13 125
Total 260 140 87 487
Formulate the hypothesis and apply chi-square test @ 5% significance level to test whether
training was effective or not. Draw the inference.
(Use the tabulated value of chi-square 9.488)
5. (A) Explain the importance of Business Analytics in business today. Differentiate between
Descriptive, Predictive and Prescriptive Analytics with suitable examples.
OR
(B) What is the role of Data Mining and Data Analytics in business and how they are used for
decision making ?

CC—13349 3 AHK/KW/19/6697