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1 M.B.A.

DEGREE EXAMINATION, NOVEMBER/DECEMBER 2010 First Semester STATISTICS FOR MANAGEMENT) Answer ALL questions PART A (10 2 = 20 Marks) 1. Define probability. 2. Give example for continuous and discrete variables. 3. What is point estimate? 4. Give the meaning of random sampling. 5. Explain Type I and Type II error. 6. What do you mean by one-tail test? 7. Write the meaning of non-parametric test. 8. How do you find the degrees of freedom in case of chi-square test? 9. Specify the range of correlation. 10. What do you mean by seasonal variation? 11. What are the common types of variables used in statistics? 12. Name a few descriptive measures of data. 13. What is the central limit theorem 14. What are elements and variables in a data set? 15. What are parametric tests? 16. If a class of students is examined and the researcher wants to test the difference in performance between boys and girls, what test will you use? 17. What is a non parametric test? 18. Name four non parametric tests. 19. How will you test the accuracy of a regression equation? 20. Why are index numbers used? 21Explain

a. Trial & Event b. Exhaustive case c. Favorable Case 22. Define Probability. 23. Write the equations for a. Addition Theorem of Probability in case of two and three events b. Multiplication Theorem of Probability. 24. What is sampling? What are the different types of sampling? 25. Define correlation. What are the different methods of studying Correlation? Write their Equations. 26. Write down the formulae/ equations respectively for the following statistical operations. a. Rank correlation b. Coefficient of regression c. Probable error & Standard error d. Binomial Distribution equation

e. Bayes theorem equation. 27. Suppose that a decision maker is faced with three decision alternative and four states of nature. Given the following profit payoff table: States of Nature S1 S2 S3 S4

Acts a1 16 10 12 7 a2 13 12 9 9 a3 11 14 15 14 Assuming that he has no knowledge of the probabilities of occurrence of the states of nature find the decisions to be recommended under each of the following criteria i) Minimax Regret ii) Laplace criterion

28. Define Correlation coefficient and Regression lines 29. what is t- test or T distribution.

30. The following table gives payoffs for actions A1, A2, A3 corresponding to the states of nature S1 and S2 whose chances are 0.6 and 0.4 respectively. Acts A1 A2 A3 States of Nature S1 16 20 18 S2 Find decision under EMV Criterion. 19 15 12

31. Write short Notes on: a) Central tendency b) Measure of Dispersion 32. Distinguish between Primary and Secondary Data. 33. What are the different methods of collecting primary data? 34. List out the steps for the computation of Median in case of Continuous frequency distribution. 35. What do you understand by Mode? Write the interpolation formula for Mode. 36. Write the formula for following: a) Range b) Mean Deviation c) Standard Deviation 37. Write short notes on Lorenz Curve 38. Write short notes on Skewness.

39. Calculate the Range and the Coefficient of Range of A s monthly earnings for a year Month 1 2 3 4 5 6 7 8 9 10 11 12

Monthly earnings ( in 00 Rs.)

139

150

151

151

157

158

160

161

162

162

173

175

40. Obtain the mean number of calls per minute Number of calls Frequency 0 14 1 21 2 25 3 43 4 51 5 40 6 39 7 12

Part B ( 3*10m=30m) Answer Any 3 1. The Mean of the following frequency distribution is 50. But the frequencies the class 20-40 and 60-80 are missing. Find the missing frequencies. Class 0-20 20-40 40-60 60-80 80-100 Frequency 17 32 19 1 2 2. Find the Coefficient of Mean Deviation (from Median) of the following data Marks Number of Students 10-20 2 20-30 6 30-40 40-50 12 18 50-60 25 60-70 20 70-80 10 80-90 7
1

and

in

Total 120

3. Calculate the standard deviation and coefficient of Variance from the following data. Age under(in years) No.of Persons dying 10 20 30 40 50 60 70 80

15

30

53

75

100

110

115

115

4. What is positive and Negative Skewness? Calculate karl pearsons coefficient of skewness using MODE and comment on the result.

Wages No.of Persons

50-60 15

60-70 18

70-80 17

80-90 30

90-100 40

100-110 20

110-120 10

Part B. Answer all 3 ( 3* 10m= 30m) 1. a. A committee of four has to be formed from among 3 economists, 4 engineers, 2 statisticians and 1 doctor. i. What is the probability that each of the four professions is represented on the committee? ii. What is the probability that the committee consists of the doctor and at least one economist? b. Four coins are tossed simultaneously. What is the probability of getting: i) 2 heads and 2 tails ii) at least 2 heads iii) At least 1 head

(Or)
2. a. A systematic sample of 100 pages was taken from the Concise Oxford Dictionary and the observed frequency distribution of foreign words per page was found to be as follows: No. of foreign words per pages (X) : 0 1 2 3 4 5 6 Frequency (f) : 48 27 12 7 4 1 1 Calculate the expected frequencies using Poisson distribution. (5m) 40. The average monthly slaes of 5000 firm are normally distributed. Its mean mean and standard Deviation are Rs.36,000 and Rs. 10,000 respectively. Find the number of firms, the sales of which are over Rs. 4000.

3. a. The result of an investigation by an expert on a fire accident in a skyscraper are summerised below: i. Probability there could have been short circuit = 0.8 ii. Probability (LPG cylinder explosion) = 0.2 iii. Chance of fire accident is 30% given a short circuit and 95% given an LPG explosion. Based on these, what do you think is the most probable cause of fire? Statistically justify your answer.

(Or)
4. a. Fit a linear trend to the following data by the least squares method. Verify that ( y ye) = 0 , where ye is the corresponding trend value of y. Year : 1990 1992 Production (in 000 units): 18 21 Also estimate the production for the year 1999 1994 23 1996 27 1998 16

5. a. A machine has produced washers having a thickness of 0.050 inches. To determine whether the machine is in proper working order, a sample of 10 washers is chosen for which the mean thickness is 0.053 and the standard deviation is 0.003 inches. Test the hypothesis at = 0.05 b.A company manufactures different types of electrical appliances, it has been using radio for advertising its products. The following table shows the amounts of radio time (X, in minutes) and the number of electrical appliances sold (Y) over last seven weeks. X 25 18 32 21 35 28 30 Y 16 11 20 15 26 32 20 i. Fit regression of Y on X ii. What will be the value of Y when X is 27?

(Or)
6. Calculate the Karl Pearson s Coefficient of correlation from the data given below: Marks 18 3 19 2 5 Age in years 20 4 7 21 10 3 3 22 2 1

20-25 15-20 10-15 5-10 0-5

PART B (5 16 = 80 Marks) 1. (a) (i) The probability of appoint of one of the 4 persons namely A, B, C and D in a Company are 1/5,

1/4, 2/7 and 3/4 respectively. The probability that the company earns profit above Rs. 20,000 per month due to their appointment is 1/3, 2/3, 1/5 and 2/5 respectively. What is the probability that the company earns about Rs. 20,000 per month? (Marks 8) (ii) In a bolt factory machines A, B, C manufacture respectively 25%, 35% and 40% of the total of their output 5, 4, 2 percent are defective bolts. If A bolt is drawn at random from the product and is found to be defective, what are the probabilities that it was manufactured by machine A, B and C? (Marks 8) 2. Fit a Poisson distribution to the following data and calculate the theoretical frequencies. x:0 1 2 3 4 f:123 59 14 3 1 (Marks 16) 3. The age of employees in a company follows normal distribution with its mean and variance as 40 years and 121 years respectively. If a random sample of 36 employees is taken from a finite normal population of size 1000, what is the probability that the sample mean is (i) less than 45 (ii) greater than 42 and (iii) between 40 and 42? (Marks 16) (4 ) A non-normal distribution representing the number of trips performed by Lorries per week in a coal field has a mean of 100 trips and variance of 121 trips. A random sample of 36 Lorries is taken from the non-normal population. What is the probability that the sample mean is (i) greater than 105 trips, (ii) less than 102 trips and (iii) between 101 and103 trips? (Marks 16) (5) The average number of defective articles in a certain factory is claimed to be less than the average for all the factories. The average for all the factories is 30.5. A random sample of 100 defective articles showed the following distribution. Class limits : 16-20 21-25 26-30 31-35 36-40 Number : 12 22 20 30 16 Calculate the mean and the standard deviation of the sample and use it to test the claim that the average is less than the figure for all the factories at 5% level of significance. Given Z(-1.645) = 0.95 . (Marks 16) (6) Three samples below have been obtained from normal populations with equal variance. Test the hypothesis that the sample means are equal. I 8 10 7 14 11 (Marks 16) II 7 5 10 9 9 III 12 9 13 12 14

(7) Two researchers adopted different sampling techniques while investigating the same group of students to find the number of students falling in different intelligence levels. The results as follows : No. of students Researcher Below average Average Above average Genius

X 80 60 44 10 Y 40 33 25 12 Would you say that the sampling techniques adopted by the two researchers are significantly different? (Marks 16) (8) The production volume of units assembled by three different operators during 9 shifts is summarized in Table 9.26. Check whether there is significant difference between the production volumes of units assembled by the three operators using Kruskal-Wallis test at a significant level of 0.05. Operator I : 29 34 34 20 32 45 42 24 35 Operator II : 30 21 23 25 44 37 34 19 38 Operator III : 26 36 41 48 27 39 28 46 15 (Marks 16) (9) Obtain the two regression lines : x : 45 48 50 55 65 70 75 72 80 85 y : 25 30 35 30 40 50 45 55 60 65 (Marks 16) (10) Calculate seasonal index from the following data : Year (Sales in 100 tonnes) I quarter II quarter III quarter IV quarter 2005 30 22 15 45 2006 32 24 18 40 2007 35 29 20 37 2008 45 32 14 30 2009 50 30 12 35 (Marks 16) 11. The following data shows the yearly income distribution of a sample of 200 employees at MNM, Inc. Yearly Income (In $1000s) Number of Employees

20 24

25 29

48

30 34

60

35 39

80

40 44

10

(i) What percentage of employees has yearly income of $35,000 or more? (ii) Is the figure (percentage) that you computed in (i) an example of statistical inference? If no, what kind of statistics does it represent? (iii) Based on this sample, the president of the company said that 45% of all our employees yearly income are $35,000 or more. The presidents statement represents what kind of statistics? (iv) With the statement made in (iii) can we assure that more than 45% of all employees yearly income are at least $35,000? Explain. (v) What percentage of employees of the sample has yearly income of $29,000 or less? (vi) How many variables are presented in the above data set? (vii) The above data set represents the results of how many observations? (12) An experiment consists of throwing two sixsided dice and observing the number of spots on the upper faces. Determine the probability that (i) the sum of the spots is 3 (ii) each die shows four or more spots (iii) the sum of the spots is not 3 (iv) neither a one nor a six appear on each die (v) a pair of sixes appear (vi) the sum of the spots is 7. (13) The life expectancy in the United States is 75 with a standard deviation of 7 years. A random sample of 49 individuals is selected. (i) What is the probability that the sample mean will be larger than 77 years? (ii) What is the probability that the sample mean will be less than 72.7 years? (iii) What is the probability that the sample mean will be between 73.5 and 76 years? (iv) What is the probability that the sample mean will be between 72 and 74 years? (v) What is the probability that the sample mean will be larger than 73.46 years? (14) A random sample of 121 checking accounts at a bank showed an average daily balance of $280. The standard deviation of the population is known to be $66. (i) Is it necessary to know anything about the shape of the distribution of the account balances in order to make an interval estimate of the mean of all the account balances? Explain. (ii) Find the standard error of the mean. (iii) Give a point estimate of the population mean. (iv) Construct a 80% confidence interval estimates for the mean. (v) Construct a 95% confidence interval for the mean. 15. The Dean of Students at UTC has said that the average grade of UTC students is higher than that of

the students at GSU. Random samples of grades from the two schools are selected, and the results are shown below. UTC Sample Size 14 GSU 12

Sample Mean

2.85

2.61

Sample Standard Deviation

0.40

0.35

Sample Mode

2.5

3.0

(i) Give the hypotheses. (ii) Compute the test statistic. (iii) At a 0.1 level of significance, test the Dean of Students statement. (16) Random samples of employees from three different departments of NMC Corporation showed the following yearly income (in $ 1,000).

Department A Department B

Department C

40

46

46

37

41

40

43

43

41

41

33

48

35

41

39

10 42 38 At 05 . = , test to determine if there is a significant difference among the average income of the employees from the three departments. Use both the critical and p- value approaches. 44

17. The sales records of two branches of a department store over the last 12 months are shown below. (Sales figures are in thousands of dollars). We want to use the Mann-Whitney-Willcoxon test to determine if there is a significant difference in the sales of the two branches.

Month 1 2 3 4 5 6 7 8 9 10 11 12

Branch A Branch B 257 210 280 230 200 250 250 260 284 275 295 300 297 320 265 290 330 310 350 325 340 329 272 335

(i) Compute the sum of the ranks (T) for branch A. (ii) Compute the mean T (iii) Compute T . .

(iv) Use = 0.05 and test to determine if there is a significant difference in the populations of the sales of the two branches. (18) Two faculty members ranked 12 candidates for scholarships. Calculate the Spearman rankcorrelation coefficient and test it for significance. Use 0.02 level of significance. Rank by Rank by Candidate Professor A Professor B

11

10

11

11

12

10

12

10

11

12

19. The following data represent the number of flash drives sold per day at a local computer shop and their prices. Price (x) Units Sold (y)

$34

36

12

32

35 30 9

38

40

(i) Develop a least-squares regression line and explain what the slope of the line indicates.

(ii) Compute the coefficient of determination and comment on the strength of relationship between x and y.

(iii) Compute the sample correlation coefficient between the price and the number of flash drives sold. Use 01 . 0 = to test the relationship between x and y.