QUESTION BANK FOR MBA STUDENTS

BUSINESS STATISTICS
1.

a. Bring out the applications of statistics in managerial decision-making.

b. Distinguish between Skewness and Kurtosis.
c. What time series?
d. What are uses of index numbers?
e. Prove that Karl Pearson coefficient of correlation lies between -1 and +1.
f. Why there are two regression lines?
g. Define mutually exclusive events. Give illustration.
h. What is Bernoulli experiment?
i. Find mean of Poission distribution.
j. Distinguish between partial and multiple correlations.
k. State application of inferential statistics.
l. What is meant by measure of central tendency?
m. Explain components of time series.
n. What are the uses of index number?
o. Distinguish between partial and multiple correlation.
p. What is regression?
q. What is addition and multiplication theorem of probability?
r. Define Binomial distribution.
s. Explain level of significance.
t. Explain the concept of t- test.

1. Answer any three of the following parts in not more than 200 wards each.
1. “Statistics plays an important role not only in the study of economics and commerce, but
also in managerial decision making”. Explain briefly
2. What is time series? Explain the various components of a time series.
3. Discuss the meaning of correlation and distinguish between positive and negative
correlation.
4. Define the Normal distribution and its characteristics.
5. Describe the various steps involved in testing a statistical hypothisis.
6. Write the difference between skewness and Kurtosis.
7. Write down the function of statistics.
8. Write a note of forecasting techniques.
9. Distinguish between correlation analysis and regression analysis.
10. Discuss the uses of probability in decision making.
11. Find the mean of first n odd natural number.
12. Lives of two models of laptops in a recent survey are:
 Life in months) No.of laptops
Model – A Model - B
0-5 2 2
5-10 4 7
10-15 6 10
15-20 5 8
20-25 3 3
(i) What is the average life of each of these Laptops?
(ii) What model has better uniformity?
13. The following data relates to sales of Hindustan Bajaj Ltd.

Year 2007 2008 2009 2010 2011

Sales (Lakhs) 40 50 80 110 140
Fit a straight line trend by the method of least squares.

14. write a lucid note on Spearman Rank correlation coefficient.

15. A can hit a target 3 times in 5 shots. B 2 times in 5 shots, and C 3 times in 4 shots. They fire a
volley. What is the probability of hitting 2 shots?
16. Write a short note of association of attributes.
17. Define statistics and discuss its application in managerial decision making.
18. Discuss the merits and demerits median as a measure of central tendency.
19. What do you mean by dispersion? What are the characteristics of good measure of
dispersion?
20. Discuss the condition of Binomial distribution. What are its main properties?
21. Define the association of attributes. How would you measure it?
22. Explain the procedure that is followed in testing of a statistical hypothesis.
23. Define skewness and Kurtosis.
24. Discuss the merits and demerits mean as a measure of central tendency.
25. What is the meant by measure of central tendency ?

SECTION – C

Following are five questions with internal choice, attempt all questions. The answer to be expected in
300 to 500 words.

1. “Measureof Central tendency, dispersion and skewness are complementary to one another
in understanding a frequency distribution.” Elucidate.
2. What are the measures of dispersion? Why the standard deviation is considered to be the
most reliable measure of dispersion? Calculate standard deviation from the following data:

Age(inyears) 4-6 6-8 8-10 10-12 12-14 14-16 16-18 1-20

No of students 30 40 50 60 40 30 20 10
3. What is the time series? Explain the various components of a time series.
4. Distinguish between correlation and regression. Drive regression lines of the following
data:∑∑∑
 ∑x = 30, ∑x2 = 190, ∑xy=192 ∑y = 30 ∑x2 = 200 and n =5.

5. What are the conditions necessary for a Normal distribution to occur? With the hep of
suitable diagram, list the chief properties of normal distribution.
6. The monthly mess bill of a student who is staying in the hostel followed by a normal
distribution with mean of Rs. 2,000 and a standard deviation of Rs. 200. What is the
probability that in the next month his will w above Rs. 2400?
7. (a) WHAT ARE Factor and Time Reversal Tests? Explain.

(b) Distinguish between chain base and fixed base indices.

8. Explain:
a. Steps involved in designing a test of significance
b. Null and Alternative hypothesis
c. Critical value
d. Type II error.
9. (a) Describe the usefulness of analysis of variance technique in business dicisions.

(b) Two types of batteries are tested for their length of life and the following results are
obtained:

Battery Sample size Mean (hours)

Standard
deviations(hrs)
ABC 100 1000 10
XYZ 120 1050 11
Can you conclude that the two types of batteries are having the same mean life.

10.
(a) What is the major purpose of hypothesis testing?
(b) The following information is obtained concerning an investigation of 50 ordinary shops of small
size
Organitation run by Shops located in
Urban area Rural area
Men 17 18
Women 3 12
Can it inferred that shops run by women are relatively more in rural areas than in urban areas/
use Chi square test.
11. Discuss the merits and demerits median as a measure of central tendency.
12. Calculate S.D and coefficient of variation of the following frequency distribution:

Marks obtained 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80

No. of students 5 10 20 40 30 20 10 5
13. The number of units of product exported during 2002-2009 is given below. Fit
straight line by the method of least squares. Estimate the export for 2010:
 Year 2002 2003 2004 2005 2006 2007 2008 2009
No. of units (in ‘0000 15 20 24 29 35 45 60 55
14. Calculate Fisher’s Ideal index from the following data and show that it satisfies time reversal
and factor reversal tests:

Commodities 2005 2009

price value price value
A 10 100 12 144
B 15 75 20 120
C 8 80 10 110
D 20 60 25 50
E 50 500 60 540
15. From the following table, calculate the Karl pearson’s coefficient of correlation between age
of husbands and wives:
Age of Age of Total
wives husband(years
Years 20-30 30-40 40-50 50-60 60-70
55-65 - - - 4 2 6
45-55 - - 4 16 5 25
35-45 - 1 112 2 - 15
25-35 - 10 25 2 - 37
15-25 5 9 3 - - 17
Total 5 20 44 24 7 100

16. From the following data obtain two regression lines:

X 17 18 19 19 20 20 21 21 22 23
Y 12 16 14 11 15 19 22 16 15 20
17. A company has two plants to manufacturing scooters. Plant I manufactures 70% of the
scooters and plant II manufactures 30%. At plat I, 80% of the scooters arrested as of
standard quality and at plant II, 90% of the scooters are rated as of standard quality. A
scooter is choosen at random and is found to be of standard quality. what is the probability
that it has come from plant II?
18. The average daily sales of 500 branch offices was Rs. 1,50,000 and the standard deviation is
Rs. 15.000. Assuming the distribution to be normal, indicates how many branches have sale
between:
(a) Rs. 1,20,000 and Rs. 1.45.000
(b) Rs. 1,40,000 and 1,65,000
19. Write short notes on any two of the following:
(a) Chi-square test
(b) Type I and type II error
(c) Spearman rank correlation coefficient.
(d) Kurtosis.
20. A drug is said to be useful for a treatment of cold. In an experiment carried out on 160
persons suffering from cold, half of the persons were treated with the drug and rest of the
half with sugar pills. The effect of treatment is described in the following table:
Helped Harmful No effect
Drug 52 10 18
Suger Pills 44 10 26
( for 2 d.f the value of chi square is 5.99 at 5% level).
21. Share prices of two companies A Ltd and B Ltd. were recorded as follows:
A Ltd. 12 13 15 14 14 14 13 17
B Ltd. 113 114 113 115 117 114 112 114
Which company’s share prices are more variable?
22. Fit a straight line trend by least square method to the data given below and estimate
for 2013:
Year 2006 2007 2008 2009 2010 2011
Sales(in’000Rs) 10 12 15 16 18 19

23. “Statistics are numerical statements of facts in any department of inquiry and placed
in relation to each other.” Comment and discuss the characteristics of statistics.
24. Find the (a) Q3 (b) D7 (c) P69, of the following

Marks: 0-10 10-20 20-30 30-40 40-50 50-60 60-70

No. of students 7 12 18 25 16 14 8

25. Elaborate on the tests which help to determine the adequancy of an Index number
formula.
26. You are given the following data:

Variable X Y
Mean 47 96
Variance 64 81
Coefficient of correlation between x and y is 0.36. Determine the questions of
regression lines. Calculate y when x = 50 , and x when y = 88.

27. Define probability distribution. Explain the salient features of binomial, Poission and
Normal distribution.
28. A committee of 4 people is to applied from 3 officers of the production department,
4 officers of purchase department, 2 officers of the sales department and 1 charted
account. Find out probability of forming the committee in the following manner:
(a) Theremust be one from each category.
 (b) It should have at least one from the purchase department.
(c) The charted account must be in the committee.
29. What do you mean by standard error ? What is its utility in testing of hypothesis?
30. A company produces two makes of bulbs A and B. 200 bulbs of each make were
tested and it was found that make A has mean life of 2,560 hours and S.d. of 90
hours, whereas make B has 2,650 hours of mean life with S.D. of 75 hours. Is there a
significant difference between the mean life of the two makes?
31. A company is interested in determining whether an association exists between the
commupting time of their employees and the level of stress-related problem observed on
the job. A study of 116assembly line workers reveals the following:

Computing Stress Total

Time
High Maderate Low
Under 20 min 9 5 18 32
20-50 min 17 8 28 53
Over 50 min 18 6 7 31
Total 44 19 53 116
At α = 0.01 level of significance, is there any evidence of a significant relationship between
commuting time and stress?

{Critical value of chi square = 13.30 at α = 0.01 and d.f. = 4}.

32. In a partially destroyed laboratory record of an analysis of correlation data, only the
following results are legible: Variance of x = 9. Regression equations: 8x - 10y + 66 =
0; 40x - 18y - 214 = 0. Find out (i) the mean values of x and y (ii) the correlation
coefficient between x and y, and standard deviation of y.
33. Assume a four year cycle and calculate the trend by the method of moving average
from the following data relating to the production of tea in India:

year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Production (million lbs) 464 515 518 467 502 540 557 571 586 612