Code: MC 1.2 Your Roll No……………...

M.Com. (Business Management) Semester-I Examination 2021-22

Paper No. MC 1.2
STATISTICAL ANALYSIS
Time: 3 Hours Max. Marks: 75

Note: Attempt one question from each unit in Section-A. Section B is compulsory.

Section-A
UNIT-I

1. (a) Starting salaries of business graduates are expected to be between Rs 25,000 and Rs 90,000.
95% confidence interval estimate of the population mean annual starting salary is desired. How
large a sample should be taken if the desired margin of error is Rs 2000? Would you suggest
achieving a margin of error of Rs 200?
(b) Youtube viewing among university students reached a new high after the Covid-19
pandemic with a mean daily viewing time of 6.5 hours. Use a normal probability distribution
with a standard deviation of 1.5 hours to answer the following questions about daily Youtube
viewing.
I. What is the probability that a student views television between 4 and 10 hours a day?
II. How many hours of Youtube viewing must a student have in order to be in the top 3% of all
Youtube viewers?
III. What is the probability that a student views Youtube more than 3 hours a day?
IV. In a group of 200 students, how many are expected to watch Youtube for more than 9
hours?
(c) After the examination, students are given 1 hour to upload the answer sheets. During this
period, the examination help desk calls come in at the rate of one every two minutes.
I. What is the expected number of calls in one hour?
II. What is the probability of three calls in five minutes?
III. What is the probability of no calls in a five-minute period?
IV. The helpdesk has just received a call. What is the probability that the next call will come
after 15 minutes?

(4+6+10 = 20 Marks)
Or

2. (a) 20% of all students attend online classes using a PC. What sample size is needed if your goal
is to estimate the current proportion of students who attend classes using a PC with a margin of
error of .03? Use a 95% confidence level.
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 (b) The average return for large-cap domestic stock funds over the three years 2019-2021 was
18.4%. Assume the three-year returns were normally distributed across funds with a standard
deviation of 4.4%.
I. What is the probability an individual large-cap domestic stock fund had a three-year return
of at least 20%?
II. What is the probability an individual large-cap domestic stock fund had a three-year return
of 10% or less?
III. How big does the return have to be to put a domestic stock fund in the top 10% for the three-
year period?
(c) Assume that battery life of the iPad Mini is uniformly distributed between 9.5 and 13 hours.
I. What is the probability that the battery life for an iPad Mini will be 10 hours or less?
II. What is the probability that the battery life for an iPad Mini will be at least 11 hours?
III. What is the probability that the battery life for an iPad Mini will be between 9.5 and 11.5
hours?
IV. In a shipment of 100 iPad Minis, how many should have a battery life of at least 9 hours?
(d) Probability is a difficult topic. 60% of all students don't get it fully in the first class. 80% of
all who don't understand probability in the first class submit assignments late. In addition, 50%
of those who understand probability well in the first class submit assignments late. A late
assignment has just been received. What is the probability that this student did not understand
the concept of probability well in the first class?

(4+5+6+5=20 Marks)

UNIT-II

3. (a) In a study entitled How BPO employees Use Credit Cards, it was reported that BPO
employees have a mean credit card balance of Rs 28,000. This figure was an all-time high and
had increased 52% over the previous five years. Assume that a current study is being conducted
to determine if it can be concluded that the mean credit card balance for BPO employees has
continued to increase compared to the original report. Based on previous studies, use a
population standard deviation σ = Rs 9000. State the null and alternative hypotheses. What is
the p-value for a sample of 180 BPO employees with a sample mean credit card balance of Rs
29,600? Using a .05 level of significance, what is your conclusion?
(b) Some studies have shown that in JMI, boys spend more than girls buying gifts and cards on
Friendship Day. Suppose a researcher wants to test this hypothesis by randomly sampling nine
boys and 10 girls from the university. Each study participant is asked to keep a log beginning
one month before Friendship Day and record all purchases made for Friendship Day during that
one-month period. The resulting data are shown below. Use these data and a 1% level of
significance to test to determine if, on average, boys actually do spend significantly more than
girls on Friendship Day. Assume that such spending is normally distributed in the population
and that the population variances are equal.

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Amount Spent by Boys (Rs) 1075 1436 902 1255 708 830 1296 1010 938
Amount Spent by Girls (Rs) 1260 455 564 806 464 443 752 685 858 1261
(6+14=20 Marks)

OR

4. (a) Adults aged 18 to 34 are viewed as the future of the restaurant industry. During 2018, this
group consumed a mean of 192 restaurant meals per person. Conduct a hypothesis test to
determine if the economic uncertainty due to the Covid crisis caused a decline in the frequency
of consuming restaurant meals by adults aged 18 to 34. Based on a sample, a study stated that
the mean number of restaurant meals consumed by adults aged 18 to 34 in 2021 was 186.
Assume the sample size was 120 and that, based on past studies, the population standard
deviation can be assumed to be σ = 55. Use the sample results to compute the test statistic and
p-value for your hypothesis test. At α = .05, what is your conclusion?
(b) A study reports that 11.3% of all students do not belong to any of the student unions.
Suppose a sample of 400 students is collected in 2021to determine whether union efforts to
organize have increased union membership. Formulate the hypotheses that can be used to
determine whether union membership increased in 2021. If the sample results show that 38 of
the students do not belong to unions, what is the p-value for your hypothesis test? At α = .05,
what is your conclusion?
(c) Indian Bank takes services of two firms for granting of loans against residential property.
These firms provide an estimate of the value of the property. The bank wants to determine
whether the two firms are similar in terms of the valuation they provide to the bank. For this
purpose, the bank gets 10 houses valued by both the firms and the data is given below.
Star Sun
Home Ltd Ltd
1 235 228
2 210 205
3 231 219
4 242 240
5 205 198
6 230 223
7 231 227
8 210 215
9 225 222
10 249 245

Test the hypothesis at 5% level of significance.

(5+5+10= 20 Marks)

UNIT-III

Read the following information and answer either Q.5 or Q.6.

To help consumers in purchasing a laptop computer, Consumer Reports calculates an overall
test score for each computer tested based upon rating factors such as ergonomics, portability,

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 performance, display, and battery life. Higher overall scores indicate better test results. The
following data show the average retail price and the overall score for ten 13-inch models.

Overall
Brand & Model Price ($) Score

Samsung Ultrabook NP900X3C-A01US 1250 83

Apple MacBook Air MC965LL/A 1300 83

Apple MacBook Air MD231LL/A 1200 82

HP ENVY 13-2050nr Spectre XT 950 79

Sony VAIO SVS13112FXB 800 77

Acer Aspire S5-391-9880 Ultrabook 1200 74

Apple MacBook Pro MD101LL/A 1200 74

Apple MacBook Pro MD313LL/A 1000 73

Dell Inspiron I13Z-6591SLV 700 67

Samsung NP535U3C-A01US 600 63

5. Use the least squares method to develop the estimated regression equation for predicting overall
score based on price. Test whether this relationship is significant at 5% level of significance.
Also compute coefficient of determination. Another laptop that Consumer Reports tested is the
Acer Aspire S3-951-6646 Ultrabook; the price for this laptop was $700. Predict the overall
score for this laptop using the estimated regression equation.
(20 Marks)
Or
6. Is it possible to predict price on the basis of overall score? Explain. Also develop prediction
interval for a laptop with overall score of 88.

(20 Marks)

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 Section-B
7. Read the following information and answer the questions that follow.
Smoking is Injurious to Health!

Tobacco is made by drying the leaves of tobacco plant. It contains nicotine which is an
addictive drug. One of the major causes of preventable death among the developing countries is
due to tobacco smoking/chewing. More than 6 million people die world over every year due to
tobacco consumption, which causes major illness like cancer. The practice of tobacco smoking
is high among the college/university students than those in general. The issue is further
complicated by use of smokeless tobacco products in India. The constituent of cigarette causes
cardiovascular diseases (mainly coronary heart diseases) and many other health related risks like
cancer (lung cancer) and respiratory diseases (mainly chronic obstructive pulmonary diseases).
Smoking also causes osteoporosis, stroke, blindness, deafness and back pain. Tobacco smoking
is also considered one of the factors for infertility in both men and women.
Although studies continue to show smoking leads to significant health problems, a large number
of school and college students continue to smoke. A recent study showed the following statistics
about smoking among 360 students.

Table 1: Prevalence of Smoking

Non-
Smoker smoker

Male 35 161

Female 39 125

Table 2: Reasons for Smoking

Reason Male Female

Stress 20 10

Pleasure 10 16

Glamour 5 13

Questions:
a. If a girl is randomly selected from the respondents of the study, what is the probability that
she smokes for pleasure?
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b. If 5 girls from the sample respondents are selected, what is the probability that none of them
smoke?
c. An earlier study reported that about 20% of all students smoke. At a level of significance of
5% and a margin of error of 5%, is the sample size of the present study sufficient?
d. A boy claims that smoking is more prevalent among girls. Do you agree? Explain your
answer using inferential statistics.
e. Do boys and girls smoke for similar reasons? Explain using inferential statistics.
(1+2+2+5+5=15 Marks)
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