MB0040 - STATISTICS FOR MANAGEMENT

DRIVE :FALL 2013

MBAFLEX (SEM 1)
Q.NO.1.
A statistical survey is a scientific process of collection and analysis of
numerical data. Explain the stages of statistical survey. Describe the
various methods for collecting data in a statistical survey.
ANS.
Statistical Survey
A Statistical Survey is a scientific process of collection and analysis of numerical
data. Statistical surveys are used to collect information .

Stages of Statistical Survey

Statistical surveys involve two stages namely Planning and Execution.
Statistical Survey

Planning

Execution

Planning a Statistical Survey

The figure bellow gives the explanation of steps involved in the planning stage.

STEP
1

Nature of the problem to be investigated should be clearly defined in

an unambiguous manner.

STEP
2

Objectives of investigation should be stated at the outset.

STEP
3
STEP
4

Objectives could be to:

Obtain certain estimates.
Establish a theory.
Verify an existing statement.
Find relationship between characteristics.
The scope of investigation has to be made clear. The scope of
investigation refers to the area to be covered, identification of units
to be studied, nature of characteristics to be observed, accuracy of
Whether
to use data
collected
from primary
or secondary
measurements,
analytical
methods,
time cost
and other source
resources
should
be
determined
in
advance.
required.

STEP
5

The organization of investigation is the final step in the process. It

encompasses the determination of the number of investigators
required, their training, supervision work needed, funds required.

Collection of Data:
The method for collection of data depends upon various factors such as objective, scope, nature
of investigation and availability of resources.
Primary data
Primary data is the one, which is collected by the investigator for the purpose of a specific
inquiry or study.
Collection of primary data is done by a suitable method as per the following:
1. Direct personal observation
2. Indirect oral interview
3. Information through agencies
4. Information through mailed questionnaires
5. Information through a schedule filled by investigators
2. Indirect oral interview Indirect oral interview is used when the area to be covered is large.
3. Collecting information through agencies Methods of collecting information through local
agencies or correspondents.
4. Information collected through mailed questionnaires Often, information is collected
through questionnaires.
5. Information through schedule filled by investigator Information can be collected
through schedules .
Secondary data
Any information, that is used for the current investigation but is obtained from some data, which
has been collected and used by some other agency or person in a separate investigation, or
survey, is known as secondary data. Secondary data may be collected either by census or by
sampling methods.

Q.NO.2.

Analysis of daily wages of workers in two organizations A and B yielded

the following results:
A
B
No. of workers
10
20
Average daily wages
30
15
(Rs)
Variance
25
100
Obtain the average daily wages and the standard deviation of wages of all
workers in the two organizations taken together. Which organisation is
more equitable in regard to wages?

Formula and Computation of Combined Mean.

Formula and Computation of Combined Standard deviation.
Formula and Computation of Coefficient of Variation .
Interpretation.
ANS.
Combined mean
Combined arithmetic mean can be computed if we know the mean and number of items in each
group of the data.
The following equation is used to compute combined mean.
Let X1& X2 be the mean of first and second groups of data containing N1 & N2 items,
respectively.
_
_
_
Then, combined mean = X12 = (N1X1+N2X2 )/ (N1+N2 )
N1=10, N2=20
_
_
X1 = 30, X2 = 15
Combined mean= (10*30+20*15) / (10+20) = 600/30 = 20

Formula and Computation of Combined Standard deviation

_
_
The mean of N1 values is X1 and that of N2 values is X2 and standard deviation of the
N1 and N2 values is 1 and 2 respectively.
Then the combined standard deviation of both the values is given by:
Variance = (N1 (12 + d1 2 ) + N2 (22 + d2 2 ) / (N1 + N2)
Standard Deviation () =
_

(Variance)
_

Where, d1 = X1 X12, d2 = X2 X12 , X being the combined mean of N1 and N2 values.

1 = 25 = 5
2 =

100 = 10

d1 = 30-20 =10
d2 = 15-20 = 5
N1 =10
N2 = 20
So, Variance = (10 (25+100)+ 20(100+25)) / (10+20) = 1250+2500/ 30 = 125
So combined S.D. =

125 = 11.18

A's Coefficient of variance = sqrt(25)/30 = 16.67% and B's Coefficient of variance = sqrt(100)/15
= 66.67%. So ans is A.

I.E. organisation is more equitable in regard to wages.

Q.NO.3.
a. State the addition and multiplication rules of probability giving an example of each case.
b. In a bolt factory machines A, B, C manufacture 25, 35 and 40 percent of the total output. Of
their total output 5, 4 and 2 percent are defective respectively. A bolt is drawn at random and is
found to be defective. What are the probabilities that it was manufactured by machines A, B
and C?
ANS.
Addition and Multiplication rules of probability

P(A1) = 0.25, P(A2) = 0.35 and P(A3) = 0.40, P(B/A1) = 0.05, P(B/A2) = 0.04 and
P(B/A3) = 0.02
These are joint probabilities...
A --> P(A1)*P(B/A1)
B --> P(A2)*P(B/A2)
C --> P(A3)*P(B/A3)
And posterior probabilities are - t = A+B+C
A --> P(A1)*P(B/A1) + t
B --> P(A2)*P(B/A2) + t
C --> P(A3)*P(B/A3) + t