JAIPURIA INSTITUTE OF MANAGEMENT, JAIPUR

POST GRADUATE DIPLOMA IN MANAGEMENT

FIRST TRIMESTER (Batch 2021-23)
END TERM-EXAMINATION

Course Name Statistics for Management Course Code 30501

Max. Time 2 Hour Max. Marks 40

Instructions: Attempt all questions.

Q1. The state government recently granted funds for a special program designed to
reduce crime in high-crime areas. A study of the results of the program in eight high-
crime areas of Rajasthan, yielded the following results:

Number of Crimes by Area

Area Jaipur Udaipur Ajmer Jodhpur Bikaner Jaisalmer Mount Kota
Abu
Before 14 7 4 5 17 12 8 9
After 2 7 3 6 8 13 3 5

Has there been a decrease in the number of crimes since the inauguration of the program?
Use the 0.01 significance level. (8 Marks)

Q2. A tire manufacturer states that a certain type of tire has a mean lifetime of 60,000
miles. Suppose lifetimes are normally distributed with standard deviation of 3,500 miles.

a. Find the probability that if you buy one such tire, it will last only 57,000 or fewer miles.
If you had this experience, is it particularly strong evidence, is it particularly strong
evidence that the tire is not as good as claimed? (3 Marks)

b. A consumer group buys five such tire and tests them. Find the probability that average
lifetime of the five tires will be 57,000 miles or less. If the mean is so low, is that
particularly strong evidence that the tire is not as good as claimed? (3 Marks)

Q3. A grocery receives its weekly supply of eggs every Thursday morning. This shipment
must last until the following Thursday when a new shipment is received. Any eggs left
unsold by Thursday are destroyed. Eggs sell for $10 per hundred and cost $8 per hundred.
The weekly demand for eggs at this grocery varies from week to week. From past
experience, the following probability distribution is assigned to weekly demand:

Demand
(hundreds of 10 11 12 13 14
eggs):
Probability: 0.1 0.2 0.4 0.2 0.1

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This pattern of demand remains stable throughout the year - the demand for eggs is not
seasonal, and the trend is flat. The problem is: How many eggs should be ordered for
delivery every Thursday? (6 Marks)

Q4. Sales of major appliances vary with the new housing market: when new home sales
are good, so are the sales of dishwashers, washing machines, driers, and refrigerators. A
trade association compiled the historical data on housing starts (X) and major appliance
sales (Y), analyzed and interpreted the following regressing results. On the basis of these
results, answer the following questions.

A. Develop an equation for the relationship between housing starts and appliance
sales. (2 Marks)
B. Interpret the slope of the regression line. (2 Marks)
C. Compute range valuation of sales at 95% prediction interval for appliance sales for
value of housing starts being $ 100000, based on the previous data. (4 Marks)

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.97909434
R Square 0.95862572
Adjusted R Square 0.95345394
Standard Error 373.716539
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 25887687.59 25887688 185.3568 8.14886E-07
Residual 8 1117312.415 139664.1
Total 9 27005000

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 1168.14461 483.4194363 2.41642 0.042084 53.377392 2282.91183 -453.914841 2790.204064
Housing Starts 1.71555252 0.126008461 13.61458 8.15E-07 1.424976491 2.006128557 1.292745329 2.138359719

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Q5. The supervisor of security at a large department store would like to know whether the
store apprehends relatively more shoplifters during the Christmas holiday season than in
the weeks before or after the holiday. He gathered data on the number of shoplifters
apprehended in the store during the months of October, November, December, January
and February over the past 15 years. The analysis results at α = 0.05 shown below.
Interpret upon the results. (6 Marks)

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
October 15 786 52.4 235.5428571
November 15 620 41.33333333 98.66666667
December 15 762 50.8 92.02857143
January 15 602 40.13333333 77.12380952
February 15 751 50.06666667 166.6380952

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 1983.78667 4 495.9466667 3.701094527 0.008623039 2.502656
Within Groups 9380 70 134

Total 11363.7867 74

Q6. Greatyear tires currently produces tires at their Wilmington, North Carlolina plant
during two 12-hours shifts. The nigh-shift employees are planning to ask for a raise
because they believe they are producing more tyres per shift than the day shift. “Because
Greatyear is making more money during the night shifts, those employees should also
make more money” according to the night-shift spokesman. I. M. Checking, the Greatyear
production supervisor, randomly selected some daily production runs from each shift and
conducted analysis. The analysis results at α = 0.01 shown below. (6 Marks)

t-Test: Two-Sample Assuming Unequal Variances

Night Day
Mean 120522.2222 113511.1111
Variance 81266944.44 60928611.11
Observations 9 9
Hypothesized Mean Difference 0
df 16
t Stat 1.763863987
P(T<=t) one-tail 0.048418311
t Critical one-tail 2.583487185
P(T<=t) two-tail 0.096836622
t Critical two-tail 2.920781622

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Page 4 of 4
STATISTICAL TABLES 2

TABLE A.2
t Distribution: Critical Values of t

Significance level
Degrees of Two-tailed test: 10% 5% 2% 1% 0.2% 0.1%
freedom One-tailed test: 5% 2.5% 1% 0.5% 0.1% 0.05%
1 6.314 12.706 31.821 63.657 318.309 636.619
2 2.920 4.303 6.965 9.925 22.327 31.599
3 2.353 3.182 4.541 5.841 10.215 12.924
4 2.132 2.776 3.747 4.604 7.173 8.610
5 2.015 2.571 3.365 4.032 5.893 6.869
6 1.943 2.447 3.143 3.707 5.208 5.959
7 1.894 2.365 2.998 3.499 4.785 5.408
8 1.860 2.306 2.896 3.355 4.501 5.041
9 1.833 2.262 2.821 3.250 4.297 4.781
10 1.812 2.228 2.764 3.169 4.144 4.587
11 1.796 2.201 2.718 3.106 4.025 4.437
12 1.782 2.179 2.681 3.055 3.930 4.318
13 1.771 2.160 2.650 3.012 3.852 4.221
14 1.761 2.145 2.624 2.977 3.787 4.140
15 1.753 2.131 2.602 2.947 3.733 4.073
16 1.746 2.120 2.583 2.921 3.686 4.015
17 1.740 2.110 2.567 2.898 3.646 3.965
18 1.734 2.101 2.552 2.878 3.610 3.922
19 1.729 2.093 2.539 2.861 3.579 3.883
20 1.725 2.086 2.528 2.845 3.552 3.850
21 1.721 2.080 2.518 2.831 3.527 3.819
22 1.717 2.074 2.508 2.819 3.505 3.792
23 1.714 2.069 2.500 2.807 3.485 3.768
24 1.711 2.064 2.492 2.797 3.467 3.745
25 1.708 2.060 2.485 2.787 3.450 3.725
26 1.706 2.056 2.479 2.779 3.435 3.707
27 1.703 2.052 2.473 2.771 3.421 3.690
28 1.701 2.048 2.467 2.763 3.408 3.674
29 1.699 2.045 2.462 2.756 3.396 3.659
30 1.697 2.042 2.457 2.750 3.385 3.646
32 1.694 2.037 2.449 2.738 3.365 3.622
34 1.691 2.032 2.441 2.728 3.348 3.601
36 1.688 2.028 2.434 2.719 3.333 3.582
38 1.686 2.024 2.429 2.712 3.319 3.566
40 1.684 2.021 2.423 2.704 3.307 3.551
42 1.682 2.018 2.418 2.698 3.296 3.538
44 1.680 2.015 2.414 2.692 3.286 3.526
46 1.679 2.013 2.410 2.687 3.277 3.515
48 1.677 2.011 2.407 2.682 3.269 3.505
50 1.676 2.009 2.403 2.678 3.261 3.496
60 1.671 2.000 2.390 2.660 3.232 3.460
70 1.667 1.994 2.381 2.648 3.211 3.435
80 1.664 1.990 2.374 2.639 3.195 3.416
90 1.662 1.987 2.368 2.632 3.183 3.402
100 1.660 1.984 2.364 2.626 3.174 3.390
120 1.658 1.980 2.358 2.617 3.160 3.373
150 1.655 1.976 2.351 2.609 3.145 3.357
200 1.653 1.972 2.345 2.601 3.131 3.340
300 1.650 1.968 2.339 2.592 3.118 3.323
400 1.649 1.966 2.336 2.588 3.111 3.315
500 1.648 1.965 2.334 2.586 3.107 3.310
600 1.647 1.964 2.333 2.584 3.104 3.307
∞ 1.645 1.960 2.326 2.576 3.090 3.291

.
 Standard Normal (Z) Table
Area between 0 and z

0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.0000 0.0040 0.0080 0.0120 0.0160 0.0199 0.0239 0.0279 0.0319 0.0359
0.1 0.0398 0.0438 0.0478 0.0517 0.0557 0.0596 0.0636 0.0675 0.0714 0.0753
0.2 0.0793 0.0832 0.0871 0.0910 0.0948 0.0987 0.1026 0.1064 0.1103 0.1141
0.3 0.1179 0.1217 0.1255 0.1293 0.1331 0.1368 0.1406 0.1443 0.1480 0.1517
0.4 0.1554 0.1591 0.1628 0.1664 0.1700 0.1736 0.1772 0.1808 0.1844 0.1879
0.5 0.1915 0.1950 0.1985 0.2019 0.2054 0.2088 0.2123 0.2157 0.2190 0.2224
0.6 0.2257 0.2291 0.2324 0.2357 0.2389 0.2422 0.2454 0.2486 0.2517 0.2549
0.7 0.2580 0.2611 0.2642 0.2673 0.2704 0.2734 0.2764 0.2794 0.2823 0.2852
0.8 0.2881 0.2910 0.2939 0.2967 0.2995 0.3023 0.3051 0.3078 0.3106 0.3133
0.9 0.3159 0.3186 0.3212 0.3238 0.3264 0.3289 0.3315 0.3340 0.3365 0.3389
1.0 0.3413 0.3438 0.3461 0.3485 0.3508 0.3531 0.3554 0.3577 0.3599 0.3621
1.1 0.3643 0.3665 0.3686 0.3708 0.3729 0.3749 0.3770 0.3790 0.3810 0.3830
1.2 0.3849 0.3869 0.3888 0.3907 0.3925 0.3944 0.3962 0.3980 0.3997 0.4015
1.3 0.4032 0.4049 0.4066 0.4082 0.4099 0.4115 0.4131 0.4147 0.4162 0.4177
1.4 0.4192 0.4207 0.4222 0.4236 0.4251 0.4265 0.4279 0.4292 0.4306 0.4319
1.5 0.4332 0.4345 0.4357 0.4370 0.4382 0.4394 0.4406 0.4418 0.4429 0.4441
1.6 0.4452 0.4463 0.4474 0.4484 0.4495 0.4505 0.4515 0.4525 0.4535 0.4545
1.7 0.4554 0.4564 0.4573 0.4582 0.4591 0.4599 0.4608 0.4616 0.4625 0.4633
1.8 0.4641 0.4649 0.4656 0.4664 0.4671 0.4678 0.4686 0.4693 0.4699 0.4706
1.9 0.4713 0.4719 0.4726 0.4732 0.4738 0.4744 0.4750 0.4756 0.4761 0.4767
2.0 0.4772 0.4778 0.4783 0.4788 0.4793 0.4798 0.4803 0.4808 0.4812 0.4817
2.1 0.4821 0.4826 0.4830 0.4834 0.4838 0.4842 0.4846 0.4850 0.4854 0.4857
2.2 0.4861 0.4864 0.4868 0.4871 0.4875 0.4878 0.4881 0.4884 0.4887 0.4890
2.3 0.4893 0.4896 0.4898 0.4901 0.4904 0.4906 0.4909 0.4911 0.4913 0.4916
2.4 0.4918 0.4920 0.4922 0.4925 0.4927 0.4929 0.4931 0.4932 0.4934 0.4936
2.5 0.4938 0.4940 0.4941 0.4943 0.4945 0.4946 0.4948 0.4949 0.4951 0.4952
2.6 0.4953 0.4955 0.4956 0.4957 0.4959 0.4960 0.4961 0.4962 0.4963 0.4964
2.7 0.4965 0.4966 0.4967 0.4968 0.4969 0.4970 0.4971 0.4972 0.4973 0.4974
2.8 0.4974 0.4975 0.4976 0.4977 0.4977 0.4978 0.4979 0.4979 0.4980 0.4981
2.9 0.4981 0.4982 0.4982 0.4983 0.4984 0.4984 0.4985 0.4985 0.4986 0.4986
3.0 0.4987 0.4987 0.4987 0.4988 0.4988 0.4989 0.4989 0.4989 0.4990 0.4990