1.

A survey of 20 business executives, selected by a random sample, working in different

departments of the Sunrise Enterprise, has been undertaken by the HR-Head of Sunrise
Enterprise. In the survey, questions were related to:
• Areas/department of employment (1=Account, 2=Finance and Planning, 3=General
Management, 4=Marketing and Sales, 5=Customer Service and Complaint Handling)
• Gender (1=female, 2=male)
• Job Satisfaction (measured as: 4= very, 3=somewhat, 2=little, 1=none)
• No. of week searching job (Search)
• Salary (in thousand per month)

The responses are recorded and analyzed as per the following tables:
ID number Area Gender Satisfaction Search Salary
1 1 2 1 2 55
2 1 1 2 5 42
3 5 1 2 1 36
4 1 2 3 2 51
5 4 1 2 2 49
6 1 2 3 4 51
7 4 1 1 1 46
8 2 1 2 1 53
9 2 2 2 4 47
10 4 1 3 14 49
11 2 2 3 1 59
12 1 1 2 3 53
13 2 1 1 3 59
14 1 1 3 2 53
15 4 2 3 2 45
16 3 1 1 4 45
17 1 2 3 1 58
18 4 2 4 2 51
19 1 2 3 2 45
20 2 2 2 1 60

The data has been analyzed using Software Package and Output Tables of Descriptive Statistics
are given as:

All Executives (Males & Females)

Search Salary Satisfaction Area
Mean 2.85 50.3 2.3 2.3
Median 2 50.5 2 2
Mode 2 53 3 1
Variance 8.34 38.96 0.75 1.91
Number 20 20 20 20

Female Executives
Search Salary Satisfaction Area
 Mean 3.6 48.5 1.9 2.7
Median 2.5 49 2 2.5
Mode 1 53 2 1
Variance 15.15 43.17 0.54 2.23
Number 10 10 10 10

Male Executives
Search Salary Satisfaction Area
Mean 2.2 52.1 2.7 1.9
Median 2 51 3 1.5
Mode 2 51 3 1
Variance 1.73 31.88 0.68 1.43
Number 10 10 10 10

(a) Suggest appropriate averages for the variables: Search, Salary, Satisfaction and Area for
combined sample (all executives).
(b) Compare appropriate averages for the variables: Search and Salary, gender-wise (male vs
female). Comment on the values (results).
(c) Suggest the HR Head, which gender group is more homogeneous in “salaries” and which
one in “search”. Comment on the results.

2. Management of the National Sports Stadium is trying to decide how many tickets to print
for the upcoming hockey match. Each ticket costs Rs 5.00 to print and sells for Rs. 25.00. Any
ticket unsold at the end of the game may be sold to a scrap dealer at Rs. 1.00. Based on the past
records of such hockey matches occurring on this ground, the management of the National
Sports Stadium has estimated the following probability distribution for the ticket sales:
Tickets sold 10000 20000 30000 40000
Probability 0.20 0.40 0.30 0.10

So, based on the above information related to four categories of ticket-sales, what suggestions
will you give to the management of the National Sports Stadium with respect to numbers of
tickets to be printed for the next match? Justify your answer.

3 (a) The retail-chain Shoppers Hub has found that the monthly purchasing of its ‘Gold-Card
Holders’ is normally distributed with an average of Rs. 25,000 and standard deviation of Rs.
5,000. Shoppers Hub is thinking of sending the ‘discount coupon’ to the Gold-Card Holders
having monthly purchasing in excess of Rs. 35,000. What percentage of the Gold-Card Holders
will receive the ‘discount coupon’?

(b) Shoppers Hub is planning to covert some of its high-purchasing ‘Gold-Card Holders’ into
the category of ‘Diamond-Card Holders’. Shoppers Hub does not want to give this facility to
more than 10% of its high purchasing Gold-Card Customers, what minimum monthly
purchase-amount should it prescribe for this conversion of ‘Gold-Card’ into the ‘Diamond-
Card’?

4(a). In a basin area where oil is likely to be found underneath the surface, there are three
locations with three different types of earth composition, say C1, C2, C3. The probability for
these three compositions are 0.5, 0.3 and 0.2, respectively. Further, it has been found from the
past experience that after drilling of well at these locations, the probabilities of finding oil is
0.2, 0.4 and 0.3, respectively. Suppose, a well is drilled at the location, and it yields oil, what
is the probability that the earth composition was C1?

(b). The scheduling officer for a local police department is trying to decide whether to schedule
additional patrol units in each of two neighborhoods. She knows that on any given day during
the past year, the probabilities of major crimes and minor crimes being committed in the
northern neighborhood was 0.478 and 0.602, respectively, and that the corresponding
probabilities in the southern neighborhood were 0.350 and 0.523. Assume that major and minor
crimes occur independently of each other and likewise that crimes in the two neighborhoods
are independent of each other.
(i) What is the probability that no crime of either type is committed in the northern
neighborhood on a given day?
(ii) What is the probability that a crime of either type is committed in the southern
neighborhood on a given day?

5. Much has been said about airline deregulation and the effects it had on the airline industry and its
performance. Following a deluge of complaints from passengers, the chief operation officer of one of
the major airlines asked the company’s public relations officer to look into the problem. There are two
measures of level of delay, one-average takeoff delay figures and the second-level of dissatisfaction
due to delay (on a scale of 1-100, 1=least and 100=most). To consider consumers’ perspective, the
public relation officer obtained average level of dissatisfaction figures for a random sample of
company’s routes over time periods of equal length before and after the deregulation for a set of 25
airports. The data has been analyzed and results are given as:

t-Test: Two-Sample Assuming Equal Variances

Before After
Mean 66.16 73.52
Variance 64.39 73.34
Observations 25 25
Pooled Variance 68.8667
Hypothesized Mean Difference 0
df 48
t Stat -3.13566
P(T<=t) one-tail 0.00146
t Critical one-tail 1.67722
P(T<=t) two-tail 0.00293
t Critical two-tail 2.01063

t-Test: Paired Two Sample for Means

Before After
Mean 66.16 73.52
Variance 64.39 73.34333
Observations 25 25
Pearson Correlation -0.03825
Hypothesized Mean Difference 0
df 24
t Stat -3.07748
P(T<=t) one-tail 0.002579
t Critical one-tail 1.710882
P(T<=t) two-tail 0.005159
t Critical two-tail 2.063899
Select the appropriate output and examine whether there is evidence that the dissatisfaction has become
a critical problem after deregulation? Comment on the findings.

6. Mr. Desai, the director of Overnight Delivery Inc, has become concerned about the number
of first-class couriers lost by his firm. These couriers are carried by both express trucks and
airplanes. He has collected the relevant information for both of the modes of transportation.
His data is as follows:
No. of couriers lost per month 0 1 2 3 4 5
Truck (Probability) 0.15 0.25 0.20 0.20 0.15 0.05
Airplane (Probability) 0.20 0.25 0.20 0.15 0.20 0.00
Mr. Desai plans to investigate the causes of loss either in the trucking or in the air division of
the Company but not the both, because of the limited resources. Which division should be
investigated by Mr. Desai?

7(a). The quality control manager of Marilyn’s cookies is inspecting a batch of chocolate chips
cookies that has just been baked. If the production process is in control, the mean no of chips
part per cookie is 6. How many cookies in a batch of 100 should the manager expect to discard
if company policy requires that all chocolate chip cookies sold have at least four chocolate
chips parts?

(b). ABC Company hired eight telephone receptionists to take telephone orders for a sporting
goods line that they are marketing. A receptionist is busy cataloguing an order 30 percent of
the time. Manager of ABC Company do not want the probability that a customer’s call is met
with busy signal to exceed 50 percent. Should company hired more receptionists if three
customers call?

8. Twelve bank tellers were randomly sampled and it was determined they made an average of
3.6 errors per day with a sample standard deviation of 0.42 error. Construct a 90 percent
confidence interval for the population mean of errors per day. What assumption is implied
about the number of errors bank tellers make?

Note 1: Revise all the problems that we did in the class.

Note 2: Revise the application of Naïve Bayes along with application of Bayes Theorem.