Q2 a) Following are the percentage figures of expenditure incurred on clothing (in Rs 100’s) and

entertainment (in Rs. 100’s) by an average working class family in a period of 10 years. (6 marks)
Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Expenditure 24 27 31 32 20 25 33 30 28 22
on clothing

Expenditure 11 8 5 3 13 10 2 7 9 2
on
entertainment

Compute Spearman’s rank correlation coefficient and comment on your result

3) a) HR Manager of company collected data on employees related to years of service &

Monthly income.

Yrs 21 17 19 15 18 16 20

Income 30 28 26 25 29 27 31

Find regression equation of income on years of service. What would be the expected Income
after 23 years of continued service? (6 marks)

(4 marks)
b) Fill in the blanks (3 marks)
i) ____________ is called type 1 error

iii) Given correlation coefficient between Net profit and share price is -0.86. It means
Net profit ___________________ as share prices decreases.

b) A company is engaged in the packaging of a superior quality tea in jars of 500 gm each.
The company is of the view that as long as jars contain 500 gm of tea, the process is in
control. The standard deviation is 50 gms. A sample of 225 jars is taken at random and the
sample average is found to be 510 gms. Has the process gone out of control? (4
marks)

Q6) a The number of parts for a particular fixture in a factory was found to vary from day to day. In
a sample study the following information was found
Days Mon Tue Wed Thu Fri Sat

Demand 1124 1125 1110 1120 1126 1115

Test using chi square whether the demand is uniformly distributed over the week (6 marks)

b) A random sample of 500 houses in a city disclosed that 125 of these houses had dish TV. Find 99%
confidence interval for the proportion of houses in the city with dish TV. (4 marks)
b) Suppose 10% of new scooters will require warranty service within the first months of its
sale. A scooter manufacturing company sells 1000 scooters in a month. Find the mean and
standard deviation of scooters that require warranty service (4 marks)

i) It is known from the past data that 10 percent of the families in a certain locality
subscribe to a periodical called outlook. Of late there has been some apprehension that this
subscription rate has declined. In order to test whether or not there has been a decline a
random sample of 100 families is chosen. It is found that the sample proportion is 0.07 ie.
7%. Can it be concluded that the subscription rate has really declined.

ii) A box contains 100 transistors, 20 of which are defective. Five transistors are selected
from the box for inspection. Find the probability that at least 2 are defective.

iii) A survey conducted by a shopping mall group showed that a family in a metro city spends
an average of Rs. 500 on clothes every month with a standard deviation of Rs. 150. Suppose
a sample of 81 families resulted in a sample mean of Rs. 540 per month. Develop a 96%
confidence interval estimator of mean amount spend per month by a family

iv) The number of accidents in a year attributed to taxi drivers in a city follows Poisson
distribution with mean 3. Out of 1000 taxi drivers find approximately the number of drivers
with More than 3 accidents in a year.

v) Calculate the mode from the following data

Marks 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119

No. of 7 9 10 6 13 10 12 7
students

Attempt any 4 questions from Q2 to Q7. (10 marks each)

Q2A. The data displayed below represent the cost of electricity during July 2004 for a
random sample of 50 one bedroom apartments in a large city. (Raw data on utility Charges
(Rs.)
96 171 202 178 147 102 153 197 127 82

157 185 90 116 172 111 148 213 130 165

141 149 206 175 123 128 144 168 109 167

95 163 150 154 130 143 187 166 139 149

108 119 183 151 114 135 191 137 129 158

a) Construct the frequency distribution and percentage distribution

b) On the basis of results around what amount does the monthly
electricity cost seems to be concentrated?
Q2B. A purchasing agent obtained samples of 60 watt bulbs from two companies. He had
the sample tested in his own laboratory for length of life with the following results
Length of life in Hours Samples from

Company A Company B

1700-1900 10 3

1900-2100 16 40

2100-2300 20 12

2300-2500 8 3

2500-700 6 2

Which company’s bulbs are better?

Q3A. In 1990, out of a total of 2000 students in a college 1400 were for graduation and the
rest for post-graduation. Out of 1400 graduate students 100 were girls. However in all there
were 600 girls in the college. In 1995 number of graduate students increased to 1700 out of
which 250 were girls, but the number of post graduate students fell to 500 of which only 50
were boys. In 2000, out of 800 girls, 650 were for graduation, whereas the total number of
graduates was 2200. The number of boys and girls in post graduate classes was equal.
Represent the information in tabular form. Also calculate the percentage increase in the
number of graduate students in 2000 as compared to 1990

Q3B. A sample of 500 respondents was selected in a large metropolitan area to determine
various information concerning consumer behavior. Among the questions asked was “do
you enjoy shopping for clothing “. Of 240 males, 136 answered yes. Of 260 females 224
answered yes. Set up a contingency table and evaluate the probabilities. What is the
probability that a respondent chosen at random is?
a). male
b). Enjoys shopping for clothing.
c). is a female and enjoys shopping for clothing.
d). is a male and does not enjoy shopping for clothing
e) Either a male or a female.

Q4A. A Psychologist wanted to compare two methods A and B of teaching. He selected a

random sample of 22 students. He grouped them into 11 pairs so that the students in a pair
have approximately equal scores on an intelligence tests. In each pair one student was
taught by method A and the other by method B and examined after the course. The marks
obtained by them are tabulated below
Pair 1 2 3 4 5 6 7 8 9 10 11
A 24 29 19 14 30 19 27 30 20 28 11
 B 37 35 16 26 23 27 19 20 16 11 21
Find the rank correlation coefficient

Q4B. Determine regression equation of salary of employee on Aptitude score in a test.

Estimate salary if aptitude score is 100.
Salary 21 58 85 68 74 93 72 122 125 130 143

Aptitude score 82 77 77 76 74 72 71 71 68 74 83

Q5B. The number of parts for a particular fixture in a factory was found to vary from day to
day. In a sample study the following information was found
Days Mon Tue Wed Thu Fri Sat

Demand 1124 1125 1110 1120 1126 1115

Test using chi square whether the demand is uniformly distributed over the week

Q6A. The data given below relate to the employment pattern of workers in three firms A, B
and C
Firm A B C
Unskilled 71 76 33
Skilled manual 50 42 28
Non manual 79 82 39
Test whether the employment patterns and firms are independent of each other.

Q6B. From the following data find Karl Pearson’s coefficient of correlation between sales
and purchases and comment on it
Sales 91 97 108 121 67 124 51 73 111 57
Purchase 71 75 69 97 70 91 39 61 80 47
s

Q7A.
i. In an intelligence test administered on 1000 students, the average was 42 and
standard deviation 24. How many students are lying between 30 and 54?
ii. The coefficient of correlation between the ages (in years) and percentage of regular
players at each age is calculated as equal to -0.7. Interpret & comment on its
relationship.
iii. A random sample of 65 ladies of a locality shows that their monthly average
expenditure on cosmetics is Rs. 120 with a standard deviation of Rs. 40. Construct
99% confidence interval for the true monthly average expenditure on cosmetics by
all ladies of the locality.
iv. What is the critical value of Z at 96% confidence for a left tail test?

i) Suppose 10% of new scooters will require warranty service within the first months of its
sale. A scooter manufacturing company sells 1000 scooters in a month. Find the mean and
standard deviation of scooters that require warranty service
iii) The probability that a certain machine will produce a defective item is 0.20. If a random
sample of 6 items is taken from the output of this machine, what is the probability that
there will be 5 or more defectives in the sample?

iv) The probability of event A is 0.2 and the probability of event B is 0.4. Also, suppose that
the two events are independent. Then P (A|B) is

a) From the following table provided find seventh Decile D7

Profit in Lacs 0-20 20-40 40-60 60-80 80-100 100-120
of ₹
No. of 8 15 36 22 12 7
Companies

b) The probability that an invoice contains an error is 6%. If an audit of the 10 invoices is taken
what is the probability that less than 3 incorrect invoices will be found.

c) An auditor picked up 400 purchase orders out of a file. It was found that the properties of
last year’s population of purchase orders with average amount of order was ₹3570 and
standard deviation of ₹1380. What is the probability that the average order will exceed
₹3680?

d) In a population with standard deviation of 10.88, what sample size is needed to estimate the
population mean within (+-) 0.9 with 99% confidence?

e) Find the table value of

Z critical value for right tail testing at 98% confidence level
Z critical value for two tail testing at 93% confidence level
2 ( df =20 at 10% level of significance)

Attempt any 4 questions from Q2 to Q7. (10 marks each)

Q2) On ten different days selected randomly, the following values were obtained for the closing
price of share of a company together with the value of the Sensex on that day. Calculate Spearman
rank correlation coefficient to find out whether Sensex is a reasonable indicator for assessing the
movement of the price of the company share.
Share 75.40 74.20 78.80 74.65 63.35 78.80 58.80 75.40 74.20 86.90
price ₹
Sensex 18319 18340 18378 18398 18383 18340 18340 18357 18340 18398

Q4a) A leading business magazine reports that 51% of the hedge fund managers expected
revelations of ‘failure & scandal’ to hit their industry in a certain year. Assume that this statistic is
based on a random sample of 100 hedge fund managers. Construct a 99% confidence interval of all
hedge fund managers who held this belief.

Q4b) An investment services company claims that the average annual return on stocks within a
certain industry is 11.5%. An investor wants to test whether this claim is true and collects a random
sample of 50 stocks in the industry of interest. He finds that the sample average annual return is
10.8% and that the sample standard deviation is 3.4%. Does the investor have enough evidence to
reject the investment’s company’s claim?

Q5) A sample of 8 employees is taken from the production department of a light engineering factory.
The data given below relate to the number of weeks experience in the wiring of components and the
number of components which were rejected as unsatisfactory last week.
Employee A B C D E F G H
Weeks of 4 5 7 9 10 11 12 14
Experienc
e
Number of 21 22 15 18 14 14 11 13
Rejects
Obtain Karl Pearson’s correlation coefficient between number of rejects and experience.

Q6) A soft drinks manufacturer has recently launched a new drink and wants to determine whether
men, women, children like or do not like its taste. For this purpose a survey is conducted. Test
whether there is difference between proportion of men, women and children who like the taste of
the drink significant using chi square.
Particulars Men Women Children
Liked the taste 63 54 93
Do not like the Taste 37 26 36

Q7) The manager of a transport company engaged in pick and drop of crew members of Jet Airlines
wants to know the weekly distances covered by its fleet of 40 cars. The mileage recorded for the last
week yielded the following data. Calculate mode and variance.
222 246 226 262 204 279 240 257

247 261 214 241 252 258 220 218

209 259 229 237 205 252 255 250

266 226 248 242 292 275 298 227

248 278 203 239 244 239 228 259