Statistics for

Management




[ERRATA]

STATISTICS FOR MANAGEMENT
MB 0040
Book ID: B1129


Sikkim Manipal University DE

Unit
Page
No.
Location EXISTING CORRECT

1

7

Section 1.2

Analysis of ata

Analysis of data
1 17
Answers to Self
Assessment
Questions


2. Industrial Quality control, Investment policies, to find
Market potential for a product.
3. The four components of Statistics are collection,
presentation, analysis and interpretation of data.





2. The four components of Statistics are collection,
presentation, analysis and interpretation of data.
3. Industrial Quality control, Investment policies, to
find Market potential for a product.



1 17
Answers to
Terminal
Questions
probabilitie

probabilities
Unit
Page
No.
Location EXISTING CORRECT
3 48 Table 3.4


Departments
Age
20 40 40 & above
Accounts 2.564 1.282
Finance 2.564 1.795
Personal 3.846 1.282
Production 2.564 2.051
Marketing 1.282 1.795
Total 12.920 8.205


Departments
Age
20 40 40 & above
Accounts 24 21.429
Finance 20 23.571
Personal 20 20.714
Production 20 18.571
Marketing 16 15.714
Total 100 100

3 49 Table 3.6

Batch Defects
Major Minor
I 8 7
II 15 5
III 25 15
Total 40 27


Batch Defects
Major Minor
I 8 7
II 15 5
III 25 15
IV 32 18
Total 80 45

3 53 Solved Problem 3
Solved Problem 3: Consider the frequency distribution of
marks given in table 3.9. Calculate the less than and more
than cumulative frequency distribution.
Solved Problem 3: Consider the frequency distribution
of marks given in table 3.9. Calculate the derived
frequency distributions, less than and more than
cumulative frequency distribution.
3 55 Table 3.14c

Age 40-50 Salary
6 6000-12000
15 12000-15000
10 15000-18000
31 Total




Age 40-50 Salary
6 9000-12000
15 12000-15000
10 15000-18000
31



3 64
Section 3.6.2
Solved Problem
10

Solved Problem 10: Construct a frequency polygon for the
data represented in table 3.20.

Solved Problem 10: Construct a frequency polygon for
the data represented in table 3.21.
3 65

Section 3.6.3
Solved Problem
11

Solved Problem 11: Construct a frequency curve for the
data represented in table 3.19.


Solved Problem 11: Construct a frequency curve for
the data represented in table 3.21.

Unit
Page
No.
Location EXISTING CORRECT
3 69
Answers to Self
Assessment
Questions

1. i. Grouping, Common, Characteristics.
ii. Bulk,
iii. Attribute
iv. Series
v. Two
vi. Series


1. i. Grouping, common characteristics.
ii. Bulk,
iii. Attribute
iv. Series
v. Two
vi. Chronological classification

3 71
Answers to
Terminal
Questions

5. The figure 3.17 is the ogive curve for the data given in
terminal question 5.
i.16% ii. 47%


5. The figure 3.17 is the ogive curve for the data given
in terminal question 5.
i.16% ii. 57%

4 95

Solved Problem
20



Solved Problem 20: Weekly sales of a product on 8
different shops are as follows. Calculate the quartiles.
Sales in units: 309, 312, 305, 307, 310, 308, 308, 306, 308



Solved Problem 20: Weekly sales of a product on 8
different shops are as follows. Calculate the quartiles.
Sales in units: 309, 312, 305, 307, 310, 308, 308, 306

4 95
Solution to Solved
Problem 20
305, 306, 307, 308, 309, 310, 312
305, 306, 307, 308, 308, 309, 310, 312
4 95
Solution to Solved
Problem 20

th
2
4
) 1 n ( 2
Q |
.
|

\
| +
= value = 2.25 x 2 = 4.5
th
value
= 4
th
value + 0.5 (5
th
value 4
th
value)
= 308 + 0.5 (30/ - 308) = 308
th
2
4
) 1 n ( 2
Q |
.
|

\
| +
= value = 2.25 x 2 = 4.5
th
value
= 4
th
value + 0.5 (5
th
value 4
th
value)
= 308 + 0.5 (308 - 308) = 308

4 96
Solution to Solved
Problem 21
P
20
class
Q
1
class and Q
2
class
D
7
class
Q
3
class
N=200 value th 50
4
Value Nth
Q
1
= =
Highlighted four lines to be removed
N=200 value 50th Value th
4
N
Q
1
= |
.
|

\
|
=

4 97
Self Assessment
Questions
3. State whether the following questions are True or
False.
i. Quantiles are positional value.
ii. Quantiles help us to find percentage of readings
below or above a certain value.

3. State whether the following questions are True or
False.
i. Quartiles are positional value.
ii. Quartiles help us to find percentage of
readings below or above a certain value.
Unit
Page
No.
Location EXISTING CORRECT
4 97
Solved Problem
22

Solved Problem 22: Find the 7
th
decile for the same data
given in solved problem 22.


Solved Problem 22: Find the 7
th
decile for the same
data given in solved problem 21.

4 98 Table 4.18

Classification Moni Mani Weight
Assignment 60 40 5
Presentation 80 60 10
First Test 50 100 10
Find Test 100 70 20
45



Classification Moni Mani Weight
Assignment 60 40 5
Presentation 80 60 10
First Test 50 100 10
Final Test 100 70 20
45


4 104 Table 4.24

X
From Meanx
145
From Medianx
143.5
140 5 3.5
141 4 2.5
142 3 1.5
143 2 0.5
144 1 0.5
145 0 1.5
147 2 3.5
158 13 6.5
1160 30 20.0



X
From Meanx
145
From Medianx
143.5
140 5 3.5
141 4 2.5
142 3 1.5
143 2 0.5
144 1 0.5
145 0 1.5
147 2 3.5
150 5 6.5
1152 22 20.0


4 104
Solution to Solved
Problem 28

Mean deviation from mean = 75 . 3
8
30
= = X X

Coefficient of MD ) X ( = 0258 . 0
145
75 . 3
=

Mean deviation from mean = 75 . 2
8
22
N
= =
X X

Coefficient of MD ) X ( = 018965 . 0
145
75 . 2
=

4 105 Line No. 2

Coefficient of MD ) X ( = 001742 . 0
5 . 143
5 . 2
=


Coefficient of MD ) X ( = 01742 . 0
5 . 143
5 . 2
=

4 105
Solution to Solved
Problem 29

24 4
65
65 28
) X ( =

=


24 4
65
) 65 (
8 2 h
f
fd
A ) X ( =

+ = + =

4 114 Table 4.32

Table 4.32. Distribution data for terminal question 4
% Marks 0 - 10 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70
No. of Smokers 4 9 19 20 18 7 80



Table 4.32. Distribution data for terminal question 4
% Marks 0 - 10 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70
No. of
Smokers
4 9 19 20 18 7 8


Unit
Page
No.
Location EXISTING CORRECT
4 115
Answers to
Terminal
Questions

2. 31.64

2. Mean= 31.64, S.D =13.362, CV =42.28%
4 116

Answers to
Terminal
Questions
4. 34
4. Median = 35.25, Mode = 33.3
5 129 Key Statistic

n
C
r
=
n
C
r-1


n
C
r
=
n
C
n-r

5 135 Line No.6

5
2
15
6
5
4
3
1
5
1
3
2
= = = + =


5
2
15
6
5
4
3
1
5
1
3
2
= = |
.
|

\
|
+ |
.
|

\
|
=

Unit
Page
No.
Location EXISTING CORRECT
6 150 Line No.12
theorectical

theoretical

6 159 Last Line

( ) ( ) ( ) 0231 . 0 25 . 0 75 . 0
! 3 ! 5
! 8
5
5 3
= - -
-
= X P

( ) ( ) ( ) 0231 . 0 25 . 0 75 . 0
! 3 ! 5
! 8
5
5 3
= - -
-
= = X P
7 184 Line No. 8
2
(3)
10
97.50
2
f
fx
f
2
fx
2
S =

= |
.
|

\
|

2
(3)
10
2
f
fx
f
2
fx
2
S
97.50
=

= |
.
|

\
|

7 184 Line No.10
0.866 0.7500 S = =

asdpoooooooo
Hence, the standard error of the mean S is 0.866.

0.866 0.7500 S = =

Hence, the standard error of the mean S is 0.866.

Unit
Page
No.
Location EXISTING CORRECT
8 208 8.8.2 -
p
= p
= p
8 209 8.8.2
Therefore, standard error of the mean = n / pq

Therefore, standard error of the mean = n / pq
= = 0.057

8 215
Answers to self
assessment
Questions
55.01
125
615
n

x
=
o
= o

55.01
125
615
n

= = =
x
o
10 260
Solution to Solved
Problem 4
5. Conclusion: Since _
2
cal
(7.5) < _
2
tab
(9.49), H
o
is rejected.
Hence, absenteeism and days of week are independent.
5. Conclusion: Since _
2
cal
(7.5) < _
2
tab
(9.49), H
o
is
accepted. Hence, absenteeism and days of week are
independent.
10 261
Solution to Solved
Problem 5
6. Conclusion: Since _
2
cal
(4.72) < _
2
tab
(7.81), H
o
is
rejected. Therefore, the result supports the theory.
6. Conclusion: Since _
2
cal
(4.72) < _
2
tab
(7.81), H
o
is
accepted. Therefore, the result supports the theory.
12 292
Line No. 13
Key Statistic
| | | |
2 / 1
2 2
2 / 1
2 2
) dy ( dy N ) dx ( dx N
dy dx dy dx N
r


=

(D)

| | | |
1/2
2 2
1/2
2 2
dy) ( dy N dx) ( dx N
dy dx dy dx N
r




=
(D)

12 294
Solution to Solved
Problem 1
(Line No. 3)



( ) ( )
2 / 1
2 2
2 / 1
2 2
) Y ( Y N ) X N ( X N
Y X XY N
r


=

( ) ( )
1/2
2 2
1/2
2 2
Y) ( Y N X) ( X N
Y X XY N
r


=
12 294
Solution to Solved
Problem 1
(Line No 4)



2 2
) 30 ( ) 904 ( 5 . ) 60 ( ) 880 ( 5
) 60 )( 60 ( ) 840 ( 5
r


=

2 2
) 60 ( ) 904 ( 5 . ) 60 ( ) 880 ( 5
) 60 )( 60 ( ) 840 ( 5


= r
Unit
Page
No.
Location EXISTING CORRECT
12 294
Table 12.2b
(Column 4 and
Column 7)

x
2
y
2

16 0
4 9
0 4
9 16
1 9
64 9
J 16
25 121
x
2
=
120
y
2
=
194



x
2
y
2

16 0
4 9
0 4
9 16
1 9
64 9
1 16
25 121
x
2
=
120
y
2
=
184


12 295

(Line No. 2)
Solution to Solved
Problem 2
00.61
184 120
92
) y ( ) x (
xy
r
2 2
=

=


= 0.619
184 120
92
) y ( ) x (
xy
r
2 2
=

=


=
Unit
Page
No.
Location EXISTING CORRECT
12 296
Solution to Solved
Problem 5

| | | |
1286 . 0
) 138 ( 2136 10 ) 56 ( 1357 10
) 138 )( 56 ( 836 10
r
2 / 1
2
2 / 1
2
=


=



| | | |
1286 . 0
) 138 ( 2136 10 ) 56 ( 1357 10
) 138 )( 56 ( - 836 10
2 / 1
2
2 / 1
2
=


= r


12 299
Table 12.5b


Competi
tor
R
1
(Judge
1)
R
2
(Judge
2)
D = R
1

R
2

D
2

1 5 6 -1 1
2 6 4 -2 4
3 4 5 -1 1
4 3 1 2 4
5 2 2 0 0
6 7 7 0 0
7 1 3 2 4
13



Compet
itor
R
1

(Judge
1)
R
2
(Judge
2)
D = R
1

R
2

D
2

1 5 6 -1 1
2 6 4 2 4
3 4 5 -1 1
4 3 1 2 4
5 2 2 0 0
6 7 7 0 0
7 1 3 -2 4
14

12 299
Below Table
12.5b

= 1 768 . 0
48 7
13 6
1
) 1 7 ( 7
13 6
2
=

Hence, Spearmans rank correlation coefficient is 0.768

= 1 75 . 0 25 . 0 1
48 7
14 6
1
) 1 7 ( 7
14 6
2
= =

Hence, Spearmans rank correlation coefficient is
0.75
12 300
Line 1
(Above Solved
Problem 9)

This heading which is given in the beginning of the
page should be ignored
12 307
(Line No. 6 in
page 307)
Section 12.8.2

2 2
yx
) dx ( dx N
) dy ( ) dx ( dxdy N
b


=
and
2 2
yx
) dy ( dy N
) dy ( ) dx ( dxdy N
b


=


2 2
yx
) dx ( dx N
) dy ( ) dx ( dxdy N
b


=
and
2 2
xy
dy) ( dy N
dy) ( dx) ( dxdy N
b


=



When ranks are repeated Type iii:

12 307
Section 12.8.3 1 . =
xy yx
b b

r b b
xy yx
= .

12 308
Table 12.10
(Second row of
the table)

Correlation
Coefficient
Regression Coefficient
The correlation
coefficients,
r
xy
= r
yx

The regression
coefficients,
b
yx
= b
xy




Correlation
Coefficient
Regression Coefficient
The correlation
coefficients,
r
xy
= r
yx

The regression
coefficients,
b
yx
b
xy



12 309
Line No. 8
(Solution to
Solved Problem
12)

Regression Equation of X and Y is:
b
yx
= 392 . 1
24
43
) 5 ( 24 10
) 0 ( ) 5 ( 43 10
2
= =





Regression Equation of X and Y is:
b
xy
= 792 . 1
24
43
) 0 ( 24 10
) 0 ( ) 5 ( 43 10
2
= =




12 312
Solution to Solved
Problem 15
Regression equation Y on X is given by:
) X X ( b ) Y Y ( =
Regression equation Y on X is given by:
) X (X b ) Y (Y yx =
14 345
Table 14.4

Solution: The table 14.5 displays the calculated values of 3
yearly and 5 yearly averages.
Table 14.5: Calculated values of 3 yearly and 5 yearly averages
Year
Production
(Thousand Y
Tonnes)
3 yearly
moving
totals
3 yearly
moving totals
Ye
Short term
fluctuations
(Y - Yc)
1988 21 - - -
1989 22 66 22.00 0
1990 23 70 23.33 - 0.33
1991 25 72 24.00 1.00
1992 24 71 23.67 0.33
1993 22 71 23.67 - 1.67
1994 25 73 24.33 0.67
1995 27 79 26.33 0.67
1996 26 - - -



Solution: The table 14.5 displays the calculated values
of 3 yearly averages.
Table 14.5: Calculated values of 3 yearly averages
Year
Production
(In Lakh
Tonnes)
3 yearly
moving
totals
3 yearly
moving totals
Yc
Short term
fluctuations
(Y - Yc)
1988 15 - - -
1989 18 49 16.33 1.67
1990 16 56 18.66 -2.66
1991 22 57 19.00 3.00
1992 19 65 21.66 -2.66
1993 24 63 21.00 3.00
1994 20 72 24.00 -4.00
1995 28 70 23.33 4.67
1996 22 80 26.66 -4.66
1997 30 - - -


15 373
Laspeyres price
index

100
Q P
Q P
I Index ice Pr s ' Laspeyre
0 1
01
0 1

E
E
= 100
Q
0
P
Q P
LP : Index Price s Laspeyre'
0
01
0 1
=

15 373
Laspeyres index
(Line No. 15)



The quantity index number using Laspeyres formula is
given by:

100
P Q
P Q
Q
0 0
1 1
01
- =

The quantity index number using Laspeyres formula is
given by:

100
P Q
P Q
Q
0 0
0 1
01
- =

15 374
Dorbish and
Bowleys method

100
2
01
PP LP
DP
01

+
=
(
(

100
1
Q
0
P
1
Q
1
P
0
Q
0
P
o
Q
1
P

E
E
+
E
E
=


100
2
01
PP LP
DP
01

+
=
(
(

100
2
1
Q
0
P
1
Q
1
P
0
Q
0
P
o
Q
1
P

+
=
15 373 Section 15.3.2
In addition to Laspeyres method, Paasches method and
Dorbish & Bowleys method, there is one more method
called Fishers method .Fishers Ideal Index is not given in
SLM .

Fishers Ideal Index =
100
1
Q
0
P
1
Q
1
P
0
Q
0
P
o
Q
1
P
=

15 379
Section 15.6.2
(Line No.5)


Family budget method or the method of weighted
relatives is the method where weights are the value (P
0
Q
0
)
in the base year often denoted by V.
100
V
RV
P
01

E
E
=
1 . 6 . 15 tion sec sub in equation the as same 100
Q P
Q P
0 0
0 1

E
E
=


Family budget method or the method of weighted
relatives is the method where weights are the value
(P
0
Q
0
) in the base year often denoted by V.
100
V
RV
P
01

E
E
=
Highlighted yellow Line to be removed