MBA SEMESTER 1

MB0040 STATSTCS FOR MANAGEMENT- 4 Credits

(Book ID: B1129)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer aII the questions
1. (a) What are the characteristics oI a good measure oI central tendency? | 5
marks|
(b) What are the uses oI averages? | 5 marks|

a). The characteristics of a good measure of central tendency are:

Present mass data in a concise form
The mass data is condensed to make the data readable and to use it for further analysis.
Facilitate comparison
t is difficult to compare two different sets of mass data. But we can compare those two after
computing the averages of individual data sets.
While comparing, the same measure of average should be used. t leads to incorrect
conclusions when the mean salary of employees is compared with the median salary of
the employees.

Establish relationship between data sets
The average can be used to draw inferences about the unknown relationships between the data
sets. Computing the averages of the data sets is helpful for estimating the average of
population.

Provide basis for decision-making
n many fields, such as business, finance, insurance and other sectors, managers compute the
averages and draw useful inferences or conclusions for taking effective decisions.

The following are the requisites of a measure of central tendency:
t should be simple to calculate and easy to understand
t should be based on all values
t should not be affected by extreme values
t should not be affected by sampling fluctuation
t should be rigidly defined
t should be capable of further algebraic treatment


b) Appropriate Situations for the use of Various Averages
1. Arithmetic mean is used when:
a. n depth study of the variable is needed
b. The variable is continuous and additive in nature
c. The data are in the interval or ratio scale
d. When the distribution is symmetrical

2. Median is used when:
a. The variable is discrete
b. There exists abnormal values
c. The distribution is skewed
d. The extreme values are missing
e. The characteristics studied are qualitative
f. The data are on the ordinal scale

3. Mode is used when:
a. The variable is discrete
b. There exists abnormal values
c. The distribution is skewed
d. The extreme values are missing
e. The characteristics studied are qualitative

4. Geometric mean is used when:
a. The rate of growth, ratios and percentages are to be studied
b. The variable is of multiplicative nature

5. Harmonic mean is used when:
a. The study is related to speed, time
b. Average of rates which produce equal effects has to be found.



2. Calculate the 3 yearly and 5 yearly averages oI the data in table below.
| 10 marks|
Table 1: Production data from 1988 to 1997
Year 1988 198
9
199
0
199
1
1992 1993 1994 1995 1996 199
7
Productio
n (in Lakh
ton)
15 18 16 22 19 24 20 28 22 30

3. (a) What is meant by secular trend? Discuss any two methods oI isolating
trend values in a time series. | 5 Marks|
(b)What is seasonal variation oI a time series? Describe the various methods
you know to evaluate it and examine their relative merits. | 5 marks|

4. The probability that a contractor will get an electrical job is 0.8, he will get a
plumbing job is 0.6 and he will get both 0.48. What is the probability that he
get at least one? Is the probabilities oI getting electrical and plumbing job
are independent? | 10 marks|

5. (a) Discuss the errors that arise in statistical survey. | 5 marks|
(b) What is quota sampling and when do we use it? | 5 marks|

6. (a) Why do we use a chi-square test? | 5 marks|
(b) Why do we use analysis oI variance?