Q.

1
A customer has taken three loans from the bank and the tenure of each loan is 5 years
 Personal Loan of Rs. 2 Lakhs at 14% rate of interest
 Car Loan of Rs. 8 Lakhs at 11% rate of interest
 Home Loan of Rs. 40 Lakhs at 9% rate of interest
What is the rate of interest for the overall Rs. 50 Lakh?

Q.2
A small startup has 10 employees including the founders. The monthly salaries of all the employees is
given in the table below:

Emp. No. 1 2 3 4 5 6 7 8 9 10

Monthly
90 80 18 18 17 16 16 16 15 14
Salary (k)

Find the mean salary?

Is mean salary the right measure? If not, then Why?
Which values in the above table are outliers? Should you trim the values from both ends? Compute the
trimmed mean by removing only the outliers and not necessarily by trimming values from both ends.

Q.3
Compute median from the below histogram.
Q.4
A small startup has 10 employees including the founders. The monthly salaries of all the employees is
given in the table below:Find the median salary.

Emp. No. 1 2 3 4 5 6 7 8 9 10

Monthly
90 80 18 18 17 16 16 16 15 14
Salary (k)

Q.5
Compute mode from the below histogram.

Q.6
A small startup has 10 employees including the founders. The monthly salaries of all the employees is
given in the table below:Find the mode salary.

Emp. No. 1 2 3 4 5 6 7 8 9 10

Monthly
90 80 18 18 17 16 16 16 15 14
Salary (k)
Q.7
Sample data of 15 students participating in the Machine Learning Certification Program conducted is
given below. Calculate the interquartile range.

Age of Students
Sr. No
(in Years)

1 22

2 23

3 25

4 27

5 28

6 35

7 32

8 28

9 30

10 40

11 24

12 26

13 27

14 29

15 31

Q.8
A small start-up has 10 employees including the founders. The monthly salaries of all the employees are
given in the table below:

Emp.
1 2 3 4 5 6 7 8 9 10
No.

Monthly
Salary 90 80 18 18 17 16 16 16 15 14
(k)

Calculate the standard deviation of the salary?

Is there any outlier or extreme values in the above table? If yes, which values are outliers?
Calculate the standard deviation by removing the outliers.
Hands-on Example
To understand the concept of covariance, it is important to do some hands-on
hands on activity. A sample survey
data of 15 households is given below. The fields are Monthly Income, Monthly Expense, and Annual
Income details of the households.

Mthly_HH_ Mthly_HH_ Annual_HH_

Income Expense Income Cov(X,Y)= sum( (X - mean(x)) * (Y -
5000 8000 64200 mean(y)) ) / (n - 1)
6000 7000 79920
10000 4500 112800 The Formula to Calculate the Correlation Coefficient
10000 2000 97200 (r) between Variable is
12500 12000 147000
14000 8000 196560 r=Covariance(x,y)/ ((Standard deviation
15000 16000 167400 of X) *(Standard deviation of Y))
18000 20000 216000
19000 9000 218880
r’ takes any value between -1 and 1
20000 9000 220800
20000 18000 278400
22000 25000 279840 Correlation
Interpretation
23400 5000 292032 Range
24000 10500 316800 Perfectly Positive Linear
r=1 Relationship between two
variables
Perfectly Negative Linear
24000 10000 244800 r = -1 Relationship between two
variables

No Relationship between
r=0
two variables

Practice Exercise
1. Calculate the Correlation coefficient between Monthly Household Income and Annual Household
Income for data that we used as an example and complete the following Table.
1. Total Number of Observations (n)
2. Mean of Monthly Household Income
3. Mean of Annual Household Income
4. The covariance of Monthly Household Income and Annual Household Income
5. The Standard Deviation of Monthly Household Income
6. The Standard Deviation of Annual Household Income
7. The Correlation Coefficient r
8. Is the linear relationship between the two variable is positive or negative and Explain it?