Question 1: A national level organization wishes to prepare a manpower plan based on the ever –

growing sales offices in the country.

The study would involve finding the correlation, if any, and if it exists, then establish a relationship
between the manpower requirement and the number of sales offices.

Year Manpower (at year end) Sales Offices (at year end)
2001 370 22
2002 386 25
2003 443 28
2004 499 31
2005 528 33
2006 616 38

Question 2: Following Tables gives aggregate figures of ET 500 companies for the period from
October 2003 to August 2006:

(Rs in Crores)

Month Total Market Total sales Total Profit

Capitalisation
October’03 714,035 856610 66240
May’04 1,127,252 928986 83152
Dec’04 1277421 933035 87907
June’05 1459099 1110214 107162
Feb’06 1827124 1228046 128107
Aug’06 2293549 1385556 140437

Question 3: Emotion seems to play a pivotal role in determining popularity of a celebrity. In an

exclusive survey made available to them by ad agency, Denstu-India, shows that the top 29 celebrity
rankings are hugely impacted by the love/like quotient besides other parameters like performance.
As per an article in Economics Times dt. 16 th October 2006, the following are the scores for some of
the Indian celebrities for the years 2005 and 2006.

Celebrity Like Scores 2005 Like Scores 2006

Rahul Dravid 59 53
Amitabh Bachchan 56 51
Sachin Tendulkar 43 50
Aishwarya Rai 56 50
Sania Mirza 21 49
Yuvraj Singh 61 46
Sushmita Sen 56 46
Virendra Sehwag 64 46
Aaamir Khan 57 45
Rani Mukharjee 57 45

Find out the correlation of the coefficient.

Question 4: The following data (in Rs Crores) gives expenditure on advertisement and sales of a
particular firm:

Advertisement Expenditure (x) Sales (y)

Mean 10 90
Standard Deviation 3 12

Correlation coefficient = 0.8

(i) Calculate the regression equation of y on x.

(ii) Estimate the advertisement expenditure required to attain a sales target of Rs 120
crores.

Question 5: Following is the Forbes Magazine’s List of India’s Twenty Billionaires for 2006

Forbes List: India’s 20 Richest

Rank Name Net worth ($ billion) Age

1 Lakshmi Mittal 20.00 55
2 Azim Premji 11.00 60
3 Mukesh Ambani 7.00 48
4 Anil Ambani 5.50 46
5 Kushal Pal Singh 5.00 74
6 Sunil MIttal 4.90 48
7 Kumar Mangalam Birla 4.40 38
8 Tulsi Tani 3.70 47
9 Pallonji Mistry 3.30 76
10 Anurag Dikshit 3.10 NA
11 Shiv Nadar 3.00 60
12 Shashi & Ravi Ruia 2.70 62
13 Adi Godrej 2.30 63
14 Anil Agarwal 2.10 52
15 Dilip Sanghvi 2.00 50
16 Naresh Goyal 1.90 56
17 Indu jain 1.70 NA
18 Venugopal Dhoot 1.60 52
19 Malvinder & Shivinder Singh 1.55 NA
20 Rahul Bajaj 1.50 67

Find correlation coefficient between net worth and age.

Question 6: Happiness Index:

New Economic Foundation is a UK based think tank that compiles the “Happy Planet Index (HPI)”.
According to its findings published in Economic Times dt. 2 nd October 2006, the Archipelago in South
Pacific Vanuatu, east of Australia is the happiest country and Zimbabwe is the saddest country in the
world.

The following table gives the data relating to rankings of HPI, GDP and HDI of some countries.
 Country HPI HDI GDP

Russia 172 61 10

USA 150 10 1

France 129 16 7

India 62 125 4

Canada 111 4 11

UK 108 15 6

China 84 31 2

Germany 81 20 5

Italy 66 18 8

Brazil 63 62 9

Find out the correlation coefficient between:

1. HPI and HDI

2. HDI and GDP

3. HPI and GDP

Question 7: The following data gives growth in Net Sales and Advertising expenses for five of the
FMCG Companies for the nine-month period from April to December 05.

Net Sales(rs in Growth% Advertisement(Rs Growth %

crores) in crores)

Hindustan Lever 8542 13 793 26

Colgate 822 14 138 33

Dabur India 980 9 124 16

Marico 784 10 87 25

Godrej Consumer 494 16 38 22

Products

Determine the coefficient of determination between Advertisement Expenses and Sales.

Question 8: According to the third annual BT-Cirrus image review of CEOs and companies that
managed to get the best of press coverage in 2005, published in Business Today of 12 th Feb 2006, the
image and visibility scores of ttop companies, 11 personalities and 10 consumer durable companies
as follows:

Top 11 Companies.

Company Total Image Score Total Visibility Score Quality of Exposure

(image score+
Visibility Score)*100

Reliance 225809 209531 108

Maruti Udyog 208467 165746 126

Microsoft 192514 134955 143

Infosys 190693 135922 140

Bharti 183083 129576 141

BSNL 163398 101491 161

SBI 152137 123635 123

Wipro 141702 102004 139

Bajaj Aujo 132968 95059 140

HLL 117632 80198 147

Determine the coefficient of determination between Image Score and Visibility score.

Top 11 Personalities.

Personality Total image Score Total Visbility Score Quality of Exposure

LN Mittal 36866 23700 156

N R Narayanmurthy 34055 29570 115

Bill Gates 23828 16890 141

Azim premji 23007 17049 135

Mukesh Ambani 22219 17554 127

Vijay mallaya 17229 14946 115

Vijayapath Singhania 16909 13149 129

Gautam Singhania 16909 13149 129

 K V kamath 14621 13133 111

Kumar Mangalam Birla 14429 11419 126

Rattan tata 11375 8421 135

Determine between the Image Score and Visibility Score.

Top 10 consumer Durables Companies.

Consumer Durables Total Image Sore Total Visibilty Score Quality of Score
Company

L G Electronics 115582 74788 155

SIEL 95831 64565 148

Videocon 30891 20278 152

Philips 30032 19961 150

Electrolux 29417 20451 144

Titan 27342 16683 164

Sony 26121 17843 146

Whirlpool 19597 140383 139

Panasonic 11350 7632 149

Haer 11211 7149 157

Determine between image Score and visibility Score.

Question 9: The following table gives certain parameters about the performance of some of the
banks as per the Business Today KPMG survey of the best banks in India 2005, published in the
special issue of Business Today Special Issue, 26 th February 2006.

Analyse the parameters of various banks using correlation and regression analysis, and prepare a
report.

Sr. Bank Averag Net Fee Operatin Cost to Return Return Capital
N e Profi Income g profit/ Incom on on adequac
o workin t / Total Employe e ratio capital averag y ratio
g funds Income employe e
 (%) e (%) d (%) assets (%)
(%)

1 HDFC 44,335 666 16.70 0.5 44.70 18 1.40 12.16

Bank

2 HSBC 23,570 337 21.70 0.25 42.50 11 1.30 14.03

3 CitiBank 30,129 600 21.00 0.42 51.10 20 1.90 10.78

NA

4 Punjab 106,30 1,41 11.50 0.05 52.40 21 1.20 14.78

National 2 0
Bank

5 Standard 34,801 602 14.40 0.2 44.10 20 1.70 10.46

Chartered
bank

6 UTI Bank 29,846 335 16.30 0.12 50.70 19 1.10 12.66

7 ICICI Bank 131,07 2,00 18.50 0.16 52.70 19 1.40 11.78

5 5

8 Oriental 46,066 761 4.80 0.08 39.20 25 1.60 9.21

Bank of
commerc
e

9 Canara 99,584 1,11 8.40 0.05 44.90 20 1.10 12.78

Bank 0

10 Union 62,101 719 5.90 0.06 44.40 21 1.10 12.09

Bank of
India

11 State 433,84 4,30 11.20 0.05 47.80 19 1.00 12.45

bank of 9 4
India

12 Bank of 87,592 677 7.20 0.06 46.30 13 0.80 12.61

Baroda

Question 10: Following table gives some financial parameters and their growth of some Indian banks
for the year 2005. Prepare a report on the relationships based on correlation – Pearson’s as well as
Spearman’s – as also regression analysis.

Bank Net Profit Net Profit Average Average Growth in Growth in

(Rs Crores) Working Working Business Business
 funds (Rs Funds
Crore)

Amount Rank Amount Rank Percentage Rank

State Bank 4,304 1 433,849 1 20 25

of India

ICICI Bank 2,005 2 131,075 2 47 2

Punjab 1,410 3 106,302 3 20 24

National
Bank

Canara 1,110 4 99,584 4 17 33

Bank

Oriental 761 5 46,066 12 32 6

Bank of
commerce

HDFC Bank 666 8 44,335 13 30 7

Standard 602 10 34,801 16 18 28

Chartered

Citibank 600 11 30,129 20 12 48

Corporation 402 16 30,444 18 23 19

Bank

ABN AMRO 195 31 13,003 38 38 3