Question Paper Code:

Reg. No. :

J6501

First Semester

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M.B.A. DEGREE EXAMINATION, JUNE 2010

BA9201 STATISTICS FOR MANAGEMENT

(Regulation 2009)
Time : Three hours

Maximum : 100 Marks

Statistical Table Book need to be provided
Answer ALL Questions

PART A (10 2 = 20 Marks)

Distinguish between qualitative and quantitative variables in statistics.

2.

Name four descriptive statistics used.

3.

What is a sampling distribution?

4.

Give two rules for determining sample size.

5.

What is a hypothesis?

6.

What is meant by design of experiments?

7.

What is a non-parametric test?

8.

When is Kruskal-Wallis test used?

9.

When is regression used?

10.

What is an index number?

1.

11.

(a)

PART B (5 16 = 80 Marks)

The following information regarding the top ten Fortune 500 companies was presented
in an issue of Fortune Magazine.
Company

Sales

Sales

Profits

$ Millions Rank $ Millions

Profits
Rank

161,315

2,956

30

Ford Motor

144,416

22,071

Wal-Mart Stores

139,208

4,430

14

Exxon

100,697

6,370

General Electric

100,469

9,269

Int'l Business Machines

81,667

6,328

Citigroup

76,431

5,807

Philip Morris

57,813

5,372

Boeing

56,154

1,120

82

AT and T

53,588

10

6,398

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General Motors

How many elements are in the above data set?

(ii)

How many variables are in this data set?

(iii) How many observations are in this data set?

Which variables are qualitative and which are quantitative variables?

(v)

What measurement scale is used for each variable?

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(iv)

Or
(b)

(i)

In the two upcoming basketball games (involving A & B and A & C), the probability
that A will defeat B is 0.63, and the probability that A will defeat C is 0.55. The
probability that A will defeat both opponents is 0.3465.
(i)

What is the probability that A will defeat C given that they defeat B?

(ii)

What is the probability that A will win at least one of the games?

(iii) What is the probability of A winning both games?

(iv)
(a)

The values obtained from a random sample of 4 observations taken from an infinite
population are given below:

12.

Are the outcomes of the games independent? Explain and substantiate your
answer.

32, 34, 35, 39

Find a point estimate for . Is this an unbiased estimate of ? Explain.

(ii)

Find a point estimate for 2 . Is this an unbiased estimated of 2 ? Explain.

(i)

(iii) Find a point estimate for .

(iv)

What can be said about the sampling distribution of x ? Discuss the expected
value, the standard deviation, and the shape of the sampling distribution of x .

(b)

Or

A bank has kept records of the checking balances of its customers and determined that
the average daily balance of its customers is $300 with a standard deviation of $48. A
random sample of 144 checking accounts is selected.
(i)

What is probability that the sample mean will be more than $306.60?

(ii)

What is probability that the sample mean will be less than $308?

(iii) What is probability that the sample mean will be between $302 and $308?
(iv)
(a)

The following is the information obtained from a random sample of 5 observations.

Assume the population has a normal distribution.

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13.

What is the probability that the sample mean will be at least $296?

20,

18,

17,

22,

18

It is required to determine whether or not the mean of the population from which this
sample was taken is significantly less than 21
(i)

State the null and the alternative hypotheses.

(ii)

Compute the standard error of the mean.

(iii) Determine the test statistic.

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(iv)

Determine the p value and at 90% confidence, test whether or not the mean of
the population is significantly less than 21.

14.

(a)

182

170

162

170

192

166

179

190

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In order to test to see if there is any significant difference in the mean number of units
produced per week by each of three production methods, the following data were
collected. (Note that the sample sizes are not equal.)
Method I Method II Method III

(i)

Compute x .

(ii)

At the = 0.05 level of significance, is there any difference in the mean number of
units produced per week by each method? Show the complete ANOVA table. Use
both the critical and p -value approaches.

Independent random samples of ten day students and ten evening students at a
University showed the following age distributions. We want to use the Mann-WhitneyWilcoxon test to determine if there is a significant difference in the age distribution of
the two groups.
Day Evening
26
18

32
24
23

25

(b)

Or

30

19

40

30

41

34

42

21

39

33

45

31

35

27

(i)

Compute the sum of the ranks (T) for the day students.

(ii)

Compute the mean T .

(iii) Compute T .
Use = 0.05 and test for any significant differences in the age distribution of the
two populations.
Or

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(iv)

(b)

In a sample of 400 people, 250 indicated that they prefer domestic products, while 140
said they prefer foreign products, and 10 indicated no preference. We want to use the
sign test to determine if there is evidence of a significant difference in the preferences
for the two types of products.
(i)

Provide the hypotheses to be tested.

(ii)

Compute the mean.

(iii) Compute the standard deviation.

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(iv)

A coffee shop owner believes that the sales of coffee at his coffee shop depend upon the
weather. He has taken a sample of 6 days. The results of the sample are given below.
Cups of Coffee Sold Temperature
350

50

200

60

210

70

100

80

60

90

40

100

(i)

Which variable is the dependent variable?

(ii)

Compute the least square estimated line.

(a)

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15.

At 95% confidence, test to determine if there is evidence of a significant difference

in the preferences for the two types of products.

(iii) Compute the correlation coefficient between temperature and the sales of coffee.
(iv)

Predict sales of a 90 degree day.

Or

The table below gives the prices of four items A, B, C and D sold at a store in 2000
and 2006.
Item Price Price Quantity Quantity
2000 2006
2000
2006
$
$
A

40

10

1,000

800

55

25

1,900

5,000

95

40

600

3,000

250

90

50

200

(b)

(i)

Using 2000 as the base year, calculate the price relative index for the four items.

(ii)

Calculate an unweighted aggregate price index for these items.

(iii) Find the Lasperyress weighted aggregate index for these items.
Find the Paasche index for these items.

(v)

Construct a weighted aggregate quantity index using 2000 as the base year price
as the weight.

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(iv)

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