ASSIGNMENT

1. The income and expenditure of a family for 6 months is given as below.

Month : 1 2 3 4 5 6 Income : 35 40 60 79 83 95 Expenditure : 17 28 30 32 38 49 To what extent is the expenditure related to the income? r = 0.9055 2. Eight recruits were subjected to selection test so as to ascertain the suitability for a certain course of training. At the end of the training they were given a proficiency test. The marks secured by recruits are recorded below: Selection Test (X) : 9 10 15 14 16 11 12 7 Proficiency Test(Y): 17 14 12 13 10 15 12 16 Calculate the Spearmans Rank Correlation Coefficient and comment on its value. r = 0.81 3. The following is purchase and sales of an FMCG Product for the past 10 months. Fit a regression line of sales on purchase. Purchases (X): 62 72 98 76 81 56 76 92 88 49 Sales (Y) : 112 124 131 117 132 96 120 136 97 85 Also, find the sales when the purchases equals 100. Y = 0.78X + 56.26, 134.26 4. A panel of judges A & B graded 7 debators and independently awarded the following marks: Debator :1 2 3 4 5 6 7 Marks by A : 40 34 28 30 44 38 31 Marks by B : 32 39 26 30 38 34 28 An eighth debator was awarded 36 marks by Judge A while Judge B was not present. How many marks would you expect him to award to the eighth debator assuming that the same degree of relationship exists in their judgement? Y = 0.59X + 11.78, 33.02 5. A problem in Statistics is given to five students A,B,C,D,E. Their chances of solving it are . 1/3, , 1/5 and 1/6. What is the prob. that the problem will be solved. (1/6) 6. A candidate is selected for interview in 3 different posts. There are 3 candidates for the 1 st post, 4 for the 2nd post and 2 for the 3rd post. What is the probability of his being selected for one of the posts? (3/4) 7. A market survey conducted in four cities pertained to preference for Brand A soap. The responses are shown below: Delhi Calcutta Chennai Mumbai Yes 45 55 60 50 No 35 45 35 45 No option 5 5 5 5 i. what is the probability that a consumer, at random , prefers brand A? (0.538) ii. What is the probability that a consumer prefers brand A and is from Chennai? (0.154) iii. What is the probability that a consumer prefers brand A given that he was from Chennai? (0.6) iv. Given that a consumer preferred brand A, what is the probability that he was from Mumbai? (0.238) 8. The client company data from the Decision Dilemma reveal that 155 employees worked one of four types of positions. Shown here is the contingency table with the type of position and by gender. Gender M F Type of position Managerial 8 3 Professional 31 13 Technical 52 17 Clerical 9 22 a. If an employee of the company is selected randomly, what is the probability that the employee is female or a professional worker? (0.555) b. What is the prob that the worker is either technical or clerical? (0.645) c. What is the probability that a person is either managerial or professional given that the person is a male. (0.39) d. What is the prob that the worker is either a professional or a clerical? (0.484) 9. An economist believes that during periods of high economic growth, the US dollar appreciates with probability 0.70; in periods of moderate economic growth, the dollar appreciates with probability 0.40; and during periods of low economic growth, the dollar appreciates with probability of 0.20. During any period of time, the probability of high economic growth is 0.30, the probability of moderate growth is 0.50, and the probability of low economic growth is

0.20. Suppose the dollar has been appreciating during the present period. What is the probability we are experiencing a period of high economic growth? (0.467) 10. Suppose that the probability that person has typhoid disease is 0.03. Medical diagnosis tests are available to determine whether the person actually has typhoid. If typhoid is actually present, the probability that the medical diagnostic test will give a positive result is 0.9 (indicating typhoid is present). If the typhoid is not actually present, the probability of a positive test result is 0.02. Suppose the test has given a positive result (indicating typhoid is present) what is the prob that typhoid is actually present. (0.582) 11. A machine is designed to produce insulating washers for electrical devices of average thickness of 0.025 cm. A random sample of 10 washers was found to have an average thickness of 0.026 cm with a standard deviation of 0.002 cm. Test the significance of the deviation at 5% level of significance. H0: Deviation is not significant (x =), H1: Deviation is Significant (x =); tcal = 1.5, t(0.05, 9) = 2.262; Accept H0 12. A company produces steel tube of mean inner diameter of 2 cm. A sample of 10 tubes gives an inner diameter of 2.01 cm and a variance of 0.004 cm2. Is the difference in the value of mean significant at 5% level of significance? H0: Difference is not significant, H1: Difference is Significant; tcal = 0.475, t(0.05, 9) = 2.262; Accept H0 13. A soap manufacturing company was distributing a particular brand of soap through a large number of retail shops. Before a heavy advertising campaign, the mean sales per week per shop was 140 dozens. After the campaign, a sample of 56 shops were taken at random and the mean sales per week was found to be 147 dozens with a standard deviation of 16 dozens. Can you consider that the advertisement was effective at 5% level of significance? H0: = 140, H1: > 140; zcal = 0.475, ztable = 1.645; Accept H0 14. The General Manager of manufacturing at a gold factory needs to determine whether a new machine is producing a particular type of gold according to the manufacturers specifications, which indicate that the gold should have a mean breaking strength of 3.25 grams and a standard deviation of 2.61. A sample of 900 pieces of gold reveals a sample mean breaking strength of 3.4 grams. Is there evidence that the machine is not meeting the manufacturers specifications for mean breaking strength? (Use 0.05 level of significance) H0: Machine is meeting the specs for mean breaking strength, H1: Machine is not meeting the specs for mean breaking strength; zcal = 1.724, ztable = 1.96; Accept H0 15. Electric bulbs manufactured by Co. X and Co. Y gave following results: Co. X Co. Y Sample Size 100 100 Mean life in hrs 1300 1248 S. D in hrs 82 93 Test whether there is any significant difference between the mean life of the bulbs at 1% significance level. Z = 4.19, table Z = 2.58. Reject H0. 16. A random sample of 1000 workers from South India shows that their mean wages is Rs. 47 per week with a standard deviation of Rs. 28 and a random sample of 1500 workers from North India has their mean wages as Rs. 49 per week with a standard deviation of Rs. 40. Is there any significant difference between the mean wages in South India and North India at 5% significance level?? Z = 1.47, Table Z = 1,96. Accept H0. 17. 10 accountants were given intensive coaching and 2 tests were conducted, one at the beginning and one at the end of the coaching. Accountant 1st test marks 2nd test marks 1 50 62 2 42 40 3 51 61 4 42 52 5 60 68 6 41 51 7 70 64 8 55 63 9 62 72 10 38 50

Is the coaching effective in improving the knowledge of the accountants at 5% level? H0: No improvement, H1: There is improvement; t = 3.72. Table value of t = 1.83. So, accept H1. i.e. there is improvement. H0: Not success, H1: Campaign is success; t = 2.78. Table value of t = 1.83. So, accept H 1. i.e. the campaign is a success.

18. In order to study the profits and losses of firms by industry, a random sample of 100 firms is selected, and for each firm in the sample, we record whether the company made money or lost money, and whether the firm is a service company. The data are summarized in the 2 x2 contingency table. Using the information in the table, determine whether you believe that the two events the company made a profit this year and the company is in the service industry are independent. Industry Type Service Non-service Profit 190 110 Loss 210 90 H0: Profit is independent of the industry type, H 1: Profit is dependent on the industry type; 2 = 3, table value is 3.84. Accept H0. i.e. Profit is independent of the industry type. 19. A market research executive conducted a study to understand the relationship between gender and use of shampoo. A sample of 8000 (above the age of 30) was randomly selected, and the data is tabulated below in the form of cross tabulation: Use shampoo Do not use shampoo Total Male 1480 120 1600 Female 5720 680 6400 Total 7200 800 8000 What do you conclude in terms of relationship between gender and use of shampoo? H0: Use of Shampoo is independent of the gender, H 1: Use of Shampoo is dependent on the gender; 2 = 13.89, table value is 3.84. Reject H0. i.e. Use of Shampoo is dependent on gender. 20. The weekly sales of two products A & B were recorded as given below A B 32 19 28 31 47 48 63 53 71 67 39 90 10 10 60 62 96 40 14 80

Which product is more consistent based on: i) Coefficient of Variation ii) Mean Deviation Ans - Product B is more stable 21. There are 3 main brands of a certain powder. A set of 120 values is examined and found to be allocated among four groups A, B, C and D as below: Brands I II III A 0 5 18 B 4 8 19 Groups C 8 13 11 D 15 6 13

Is there any significant preference in brand preference at 5% significance level? H0: There is no significant difference in brand preference, H1: There is significant difference in brands preference. Source of Variation Sum of Degrees of Mean Variance Ratio Squares freedom Sum of Squares Between Brands (SSC) 168.5 2 84.25 F = 84.25/22.83 = 3.69 Error (SSE) 205.5 9 22.83 Total Sum of Squares (TSS) 374

Table value for (2,9) DoF at 5% significance is 4.26. So, H 0 is accepted. i.e. There is no significant difference between brand preference. 22. Four varieties of paddy were planted in 3 different plots of different soil. The yield is as below: Brands P Q R A 38 45 40 B 40 42 38 Groups C 41 49 42 D 39 36 42

Test whether there is any significant difference between mean yield of the varieties of paddy and between the mean yield in different types of soil. H0: There is no significant difference in mean yield of the 4 varieties and between different plots, H 1: There is difference in mean yield of the 4 varieties and between different plots. FC = 1.19, FR = 1.28 Table value for (3,6) DoF at 5% significance is 4.76, Table value for (6,2) DoF at 5% significance is 19.3. So, H0 is accepted. i.e. There is no significant difference in mean yield of the 4 varieties and between different plots.