Reg. No.

Question Pap"* Codg t ffi

M.B.A. DEGREE EXAMINATION, JANUARY 2012.

First Semester
BA 9201

STATISTICS FOR MANAGEMENT

(Regulation 2009)

Maximum : 100 marks

Tirne : Three hours

Use of Statistical Tables is permitted'

Answer ALL questions.

PART A

(10

x2 -

2A

marks)

1.

What is a random exPerimerrt?

2.

Given

d.

What

d.o

4.

Define point estimate and interval estimate'

5.

What is the relationship between the significance levei of a test and Type
ettor?

b.

what probability distribution is used in each of these types of statistical tests?

4.2, for a Poisson distribution, find P(x 32)

'

you mean by sampling distribution of the mean?

(a)

Comparing two population variances

(b)

value of a single population mearl and based on large samples.

7.

what are the primary shortcomings of nonparametric tests?

8.

Defi ne rank-correlation co-efficient'

9.

the
which of the four components of a time series would we use to describe
effect of christmas sales on a retail department store?

10.

price,
Explain the differences among the three principal types of ind'ices

quantity and value.

PARTB-(fx16=80marks)

11. (a) (i) A

doctor has decided to prescribe two new drugs

lo

200 heart

patients as follows : 50 get drug A, 50 get drug B, and 100 get both.

The 200 patients were chosen so that each had an 80 percent

chance of having a heart attack

if given neither drug. Drug

reduces the probability of a heart attack by 35 percent, drug B

reduces the probabiiity by 20 percent, and the two drugs, when
taken together, work independently. If a randomly selected patient

in the program has a heart attack, what is the probability that the
patient was given both drugs?

(ii) Miiitary

(8)

radar and missile detection systems are designed to warn a

country of an enemy attacks. A reliability question is whether a

will be able to identify an attack and issue of

warning. Assume that a particular detection system has 0.g0
probabiiity of detecting a missile attack. Use the binomial
detection system

probability distribution to answer the following questions (1) If two

detection systems are installed

in the

same area and operate

is the probabiiity that atleast one of the

will detect the attack? (2) If three systems are installed,

independently, what
systems

what is the probability that atleast one of the systems will detect

the attack? (3) Would you recommend the multiple

systems be used? Explain.

detection
(B)

Or

(b) (i)

The average monthly sales of 5000 firms are normally distributed.

Its mean and standard deviation are Rs. 36,000 and Rs. 10,000
respectively. Find (1) the number of firms having saies over
Rs. 40,000 (2) the percentage of firms having sales between
Rs. 38,500 and Rs. 41,000.

(8)

91101

.J

(ii)

The frequencv distribution below represents the average monthiy

balances for 600 customers, in a bank. Calculate the median for
these data :
(8)
Class in

Dollars

Frequency

0-49.99

78

50-99.99

123

100-149.99

t87

150-199.99

82

200-249.99

51

250-299.99

47

300-349.99

13

350-399.99

400-449.99

450-499.99

4
600

12. (a) (i)

A researcher for a Coffee Corporation, is interested in determining

the rate of coffee usage per household in the United states. she
believes that yearly consumption per household is normally
distributed with an unknown mean p and a standard deviation of
about 1.25 pounds (1) if she takes a sample of 86 households and
records their consumption, of coffee for one year, what is the
probability that the sampie mean is within one-half pound of the
population mean? (2) How large a sample must she take in order to
be 98 percent certain that the sample mean is within one-half
pound of the population mean?
(8)

(ii)

From a population of 540, a sample of 60 individuals is taken. From

this sample, the mean is found to be 6.2 and the standard deviation

1.368. (1) Find the estimated standard error of the mean

(2) Construct a 96 percent confidence interval for the mean. (g)
Or
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ft)

(i)

A social psychoiogist surveyed 150 persons and found that

42 percent of them were unabie to add fractions correctly (1)
Estimate the standard error of the population (2) Construct a
99 percent confidence interval for the true proportion of the group
(8)
who cannot correctly add fractions.

(ii) Seven home makers were randomly sampled, and it

was

determined that the distances they walked in their housework an

average of 39.2 miles per week and a sample standard deviation of
3.2 miles per week. Construct a 95 percent confidence interval for
(8)
the population mean.

13. (a)

(i)

(ii)

T\vo independent samples of observations were collected. For the

first sample of 60 elements, the mean was 86 and the standard
deviation 6. The second sample of 75 elements had a mean of
82 and a standard deviation of 9. (1) compute the estimated
standard error of the difference between the two means (2) using
d = 0.01, test whether the two samples can reasonably be
considered to have come from populations with the same mean. (8)

\L

Given a sample mean of 83, a sample standard deviation of I2.5

and a sample size of 22, test the hypothesis that the value of the
population mean is 70 against the alternative that it is more than
(8)
70. Use the 0.025 significance level.
Or

(b)

A company has appointed four salesman, A, B, C and D, and observed

their sales in three seasons - summer, winter and monsoon. The figures
(in Rs. Laklr.) are given in the foliowing table
:

Salesmen

Seasons

Summer 36 36 2L

35

Winter

28 29 31

32

Monsoon

26 28 29

29

level of significance, perform an anlysis of variance on the

(16)
above data and interplet the resuits.

Using

SVa

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14. (a)

A Boutique has 3 mall locations. The owner keeps a daily record for each

location of the number of customers who actually make a purchase.

A sample of these data foilows. Using the I(ruskal Wallis test, can you
say at the 0.05 level of significance that the stores have the same number

of customers who buy?

(16)

Mail

A 99 64 101 85 79 88

97

95 90

100

Mall

B 83 I02 125 61 91 96

94

89 93

75

Mali

C 89 98 56 105 87 90

87

101 76

89

Or

(b)

A plant supewisor ranked a sample of eight workers on the number of

hours of overtime worked and length of empioyment. Is the rank
correlation between the two measures significant at the 0.01 level

15. (a)

Amountofovertime:

5 8 2 4 3 7 1

Years employed

164.52784.53

(16)

Mr. X owns a small company that manufactures portable message tables.

Since he started the company, the number of tables he has sold is
reprsented by this time series

\v
Year:
Tables

L987 1988 1989 1990 1991 1992 1993 1994 1995

sold: 42

50

61

75

92 111 720 127 L40

1996
138

Find the linear equation that describes the trend in the number of tables
sold by him.

(16)

Or

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Vineyard has collected the following information

describing the prices and quantities of harvested crops for the years

(b) The owner of a

Grape

Type of
Ruby

Price (per ton) (in

$)

Quantity harvested (tons)

cabernet 108 109 113 Ll-1 1280 1150 1330

1360

93 96 96 101 830 860 850

890

Barbera

cherian

Blank 97 99 106 L07 1640 1760 1630 1660

(i)

construct a Laspeyers index for each of these 4 years using 1992

the base Period.

(ii)

calculate a Paasche index for each year using 1993 as the base
period as the base Period.

as

\,

(16)

\,

91101

Reg. No.

Question Paper Code : 86501

(i) How many elements are in the above data set?

(ii) How many variables are in this data set?
(iii) How many observations are in this data set?
(iv) Which variables are qualitative and which are quantitative
variables?

(v)

What measurement scale is used for each variable?

Or

(b)

The weights of the contents of cans of tomato sauce produced by a

company are normally distributed with a mean of 8 ounces and a
standard deviation of 0.2 ounces.

t2.

(a)

(i)

What percentagei of all cans produced contain more than 8.4 ounces
of tomato paste?

(ii)
(iii)
(iv)
(v)

What percentage of all cans produced contain less than 7.8 ounces?

What percentage of cans contains between 7 .4 and 8.2 ounces?

Ninety-frve percent of cans will contain at least how many ounces?
What percentage of cans contains between 8.2 and8.4 ounces?

Elaborate on the probability a4d non-probability sampling techniques.

Or

(b)

An automobile dealer wants to estimate the proportion of customers who

still own the cars they purchased 5 years earlier. A random sample of
200 customers selected from the automobile dealer's records indicates
that 82 still own cars that were purchased 5 years earlier.

(i) Set up a

95Vo confrdence interval estimate of the population

proportion of all customers who still own the cars 5 years after they
were purchased.

(ii)
13. (a)

How can the results in (i) be used by the automobile dealer to study
satisfaction with cars purchased at the dealership?

Confirmed cases of West Nile virus in birds for a sample of six countries
in the state of Georgia are shown below :

Country

Cases

Dade
Gordon

Murray
Walker

86501

V,

if the average number of cases of West Nile virus

the state of Georgia is signifrcantly more than 3. Assume the

You want to determine

in

population is normally distributed.

(il
(ii)
(iii)
(iv)

State the'nuli and the alternative hypothesis

Compute the mean and the standard deviation of the sample.
Compute the standard error of the mean.

Determine the test statistic.

Or

ft)

Rand.om samples of employees from three different departments of MNM

Corporation showed the following yearly incomes (in $1,OOO) :

Department

Department

Department C

40

46

46

t'7

dt

4L

40

43

43

4l

4L

OD

48

35

4t

39

38

42

44

a =.05, test to determine if there is a significant

difference among the

average incomes of the employees from the three departments. Use both
the critical and p-value approaches.
At'

L4. (a) A survey

of male and female studbnts showed. the following ranking of

12 professors in the management department :

Professor Ranking By Female Students Ranking By Male Students

\-

L0

10

l_1

10

11

11

t2

125

.o

L2

Do the rankings given by the female students agree with the rankings
glven by the male students? Use a =A.05.
Or

86501

(b)

The manager of a company believes that differences in sales performance

depends upon the salesperson's age. Independent samples of salespeople
were taken and their weekly sales record is reported below :
Below 30 years Between 30 and 45 years Over 45 years
No. of Sales
No. of Sales
No. of Sales
24
23
30
16
2T

(i)
(ii)
15. (a)

L7

15

22
25

20
23
25

19

18

34

26

29
27

36
28

State the null and'alternative hypotheses.

At

95Vo corfr.dence,

test the hypotheses.

Given belsw are four observations collected in a regression study on two

variables r (independent variabie) and y (depend.eni variable) :

tcy

24
67
98
qo
JJ

(i)

Develop the least squares estimated regression equation.

(ii)

Compute the coefficient of determination.

(10)
(6)

Or

(b)

You are given the following information regarding four items

:
2000
2A06

Item .

A
B
c
D

Price Quantity Price Quantity

$2.00
0.80
22.00
'7.00

3
20
4
2

$s.25
r.25
35.00
15.00

8
10

']

3
1

(i)

Calculate the price relative index for each item, using 2000 as the
(3)
base year.

(ii)
(iii)
(iv)
(v)

Calculate the unweighted aggregate price index.

Calculate a.Laspeyres

index.

Calculate a Paasche'index.

(3)
(3)
(3)

Construct a weighted aggregate quantity ind.ex using 2000 as the

base year and price as the weight.

(4)

8650r