Quantitative Techniques - I Topic wise unsolved questions from Previous Years Exam papers

EXERCISE 1 STATISTICS: INTRODUCTION TO STATISTICS Frequency Distribution and Grouping of Data, Data, Qualitative and Quantitative Data, Descriptive and Inferencial Statistics.

Q 1: A doctor's office staff has studied the waiting times for patients who arrive at the office with a request for emergency service. The following data were collected over at a one month period (the waiting times are in minutes). 2 5 10 12 4 4 5 17 11 8 9 8 12 21 6 8 7 13 18 3 Use classes of 0-4, 5-9 and so on. (i) (ii) (iii) Show the frequency distribution table Calculate the relative frequency distribution Also provide the histogram (Draw on Graph Paper). (PGDM Mid Term Exam 2007) (10 marks) Q 2: A doctor's office staff has studied the waiting times for patients who arrive at the office with a request for emergency service. The following data were collected over at a one month period( the waiting times are in minutes). 10 21 25 9 16 18 13 17 6 10 6 19 8 5 20 13 15 26 10 24 12 16 12 22

23 20

Use classes of 0-6, 7-13 and so on. (i) (ii) (iii) Show the frequency distribution table Calculate the relative frequency distribution Also provide the histogram. (PGDM Mid Term Exam 2007) (10 marks) Q 3: A doctor's office staff has studied the waiting times for patients who arrive at the office with a request for emergency service. The following data were collected over at a one month period (the waiting times are in minutes). 5 19 15 5 15 18 14 27 16 14 18 28 5 23 27 29 10 20 9 25 8 27 6 20 10 21

Use classes of 0-5, 6-11 and so on. (i) (ii) (iii) Show the frequency distribution table Calculate the relative frequency distribution Also provide the histogram (Draw on Graph Paper). (PGDM Mid Term Exam 2007) (10 marks) Q 4: Write short notes on the following: (a) Applicability of different types of Bar Charts. (b) Use of Statistical tools for Decision making in the situation of volatile stock market. (PGDM Mid Term Exam 2008) (10 marks) Q 5: Below are monthly rents paid by 30 students who live off campus. (a) Group the data and construct frequency distribution (b) Find the mean, median, mode, coefficient of variation from grouped data (c) Comment on the shape of the frequency curve. (d) Loss of information has occurred in grouping the data. Comment 730 720 760 730 670 690 730 560 710 930 740 500 700 650 730 570 660 800 690 850 820 1030 740 620 930 600 620 840 720 700 (PGDM Mid Term Exam 2008) (10 marks)

Q 6: At a newspaper office, the time required to set the entire front page in type was recorded for 50 days. The data, to the nearest tenth of a minute, are given below: 20.8 25.3 23.7 21.3 19.7 22.8 20.7 20.3 21.5 24.2 21.9 22.5 23.6 23.1 23.8 22.0 21.2 19.0 19.9 20.7 20.7 23.8 25.1 24.2 23.8 20.9 23.3 25.0 24.1 24.3 25.0 20.9 19.5 19.8 21.1 22.2 22.9 24.1 23.9 20.9 22.8 23.5 24.2 22.8 21.6 20.1 19.5 21.8 23.9 22.7

(a) Arrange the data in an array from lowest to highest. (b) Construct a relative frequency distribution using intervals of 0.80 minute (c) Construct relative frequency and Cumulative distribution (d) Construct a less than Ogive. (e) From the Ogive, estimate what percentage of the time the front page can be set in less than 24 minutes. (PGDM HR Mid Term Exam 2008) (10 marks) Q 7: The Nebraska Department of Agriculture has these data representing weekly growth (in inches) on samples of newly planted spring corn:

0.4 0.9

1.9 0.7

1.5 0.9

0.9 0.7

0.3 0.9

1.6 1.5

0.4 0.5

1.5 1.5

1.2 1.7

0.8 1.8

(a) Arrange the data in an array from highest to lowest. (b) Construct a relative frequency distribution using intervals of 0.25 (c) From what you have done so far, what conclusions can you come to about growth in this sample? (d) Construct an Ogive that will help you determine what proportion of the corn grew at more than 1.0 inch a week (e) What was the approximate weekly growth rate of the middle item in the data array? (PGDM HR Mid Term Exam 2008) (10 marks) Q 8 (A): If OGIVE : MODE then, HISTOGRAM : ? (i) Mean (ii) Median (iii) Mode (iv) Standard Deviation (v) Coefficient of Variation (PGDM HR End Term Exam 2009) (1 marks) Q 8 (B): Which of the following steps in the development of a quantitative model affects the accuracy of the solution? (i) Inadequacy of the data (ii) Uses of charts (iii) Presentation of the solution (iv) Selection of number of variables (v) None of the above (PGDM HR End Term Exam 2009) (1 marks) Q 8 (C): A census survey method does not include: (i) ascertainment of average amount of money carried by students of a class by collecting information from each and every student of the same class. (ii) Testing the blood samples of suspected cases of swine flue (for traces of H1N1 virus) (iii) finalization of total cost of a company. (iv) dividend paid by the by the companies to their shareholders (v) None of the above (PGDM Mid Term Exam 2009) (1 marks) Q 9: A doctor's office staff has studied that the waiting time (in minutes) for patients who arrive at the office are as follows : 2 21 5 6 10 8 12 7 4 13 4 18 5 3 17 11 8 9 8 12

Use class Interval of 0-4 , 5-9 and so on. (i) Show the frequency and Cumulative frequency distribution (ii) Calculate the relative frequency (iii) Draw Bar Chart (PGDM HR End Term Exam 2009) (4+3+3=10 Marks) Q 10 : Dr Jhamjham is running a pharma company. She was reviewing the credit policy of the company towards the new customers. She studied the credit history of all the individual customers related to the average credit period offered to them. The objective of her study was to allow a specific credit limit to new customers in future wherein the deviations will not be accepted or penalty may be be imposed on them in case of default. The past data suggests that the maximum achievable sales is Rs 6 lakhs while the maximum credit limit is 30 days. She studied the past data for Sales Volume (SV) and Credit Period (CP) for few clients as given in the following table (Table 1). Table 1: Credit period and Sales Volume (Sales Volume in Rupees lakhs and Credit period in days) 1.5 3 4.9 1.4 2.2 2.5 4 1 4.8 3 3.9 2.2 4 5.4 3.3 4.4 1.5 4 3 2 1 7 22 29 14 9 13 16 25 6 3 17 9 14 26 29 22 15 6 5 9

SV 1 3

0.7 2

CP 3 17 12 25 5

(a) Construct a bi-variate frequency distribution table wherein SV values are shown in 5 rows while CP values are shown in 5 columns. (b) Show all the marginal frequencies. (c) Calculate mean under each category (either row wise or column wise) (d) Calculate the overall mean of all the individual categories means. (e) What is cross tabulation. (PGDM Mid Term Exam 2010) (2 x 5 = 10 marks) Q 11: Write applications of various types of Bar Diagrams in the business world. (PGDM Batch D End Term Exam 2010) (10 marks)

NOTE: Students are advised to solve all the above problems and should bring the solution with them in the classroom for verification by the course faculty. Penalty will be imposed if any student fails to produce the solution at the time of verification. Sanjay Sinha

Quantitative Techniques - I Topic wise unsolved questions from Previous Years Exam papers
EXERCISE 2 MEASURES OF CENTRAL TENDENCY: Computation of Arithmetic Mean, Geometric Mean, Harmonic Mean, Mode, Median for grouped and un-grouped data, their applications in business world situations. Q 1: According to a salary survey conducted by the National Association of Colleges and Employers, bachelor's degree candidates in accounting received starting offers averaging Rs 34,500 per year. A sample of 30 students of bachelor's degree in accounting resulted in the following starting salaries. Data are in thousands of rupees. 36.8 35.8 37.3 38.3 38.3 36.1 36.3 35.0 36.5 36.4 39.0 37.9 39.4 36.4 Calculate the Mean, Median and Mode. 38.8 37.2 34.9 36.7 36.8 36.4 38.2 36.7 36.0 38.4 36.4 37.0 35.4 36.2 35.2 36.6

(PGDM Mid Term Exam 2007) (10 marks) Q 2: According to a salary survey conducted by the National Association of Colleges and Employers, bachelor's degree candidates in accounting received starting offers averaging Rs 34,500 per year. A sample of 30 students of bachelor's degree in accounting resulted in the following starting salaries. Data are in thousands of rupees. 14.8 25.7 17.3 19.3 28.3 16.1 25.3 18.0 46.5 26.4 13.0 19.9 44.4 52.4 Calculate the Mean, Median and Mode. 20.8 28.2 16.4 26.7 32.3 46.3 13.8 18.7 40.0 82.4 19.2 13.0 35.4 46.2 36.5 13.8

(PGDM Mid Term Exam 2007) (10 marks) Q 3: According to a salary survey conducted by the National Association of Colleges and Employers, bachelor's degree candidates in accounting received starting offers averaging Rs 34,500 per year. A sample of 30 students of bachelor's degree in accounting resulted in the following starting salaries. Data are in thousands of rupees. 16.8 15.8 17.3 18.3 38.3 25.1 23.3 15.2 36.5 36.4 29.0 27.9 19.4 25.4 Calculate the Mean, Median and Mode 18.8 25.2 34.9 26.7 36.8 16.4 38.2 36.7 36.0 38.4 36.4 37.0 35.4 36.2 35.2 36.6

(PGDM Mid Term Exam 2007) (10 marks)

Q 4: Expected life of two brands of refrigerators has been shown in following table. Calculate the AVERAGE LIFE and MODE LIFE of these brands. Life (No. of Years) 0-2 2-4 4-6 6-8 8-10 10-12 5 16 13 7 5 4 Refrigerators Model A Model B 2 7 12 19 9 1

(PGDM Mid Term Exam 2007) (10 marks) Q 5: Samples of polythene bags from two manufacturers, A and B are tested by a prospective buyer for bursting pressure and the results are as given in the table. What is the average and mode of these two polythene bags are: Bursting pressure (lb) No. of bags A 5.0-9.9 10.0-14.9 15.0-19.9 20.0-24.9 25.0-29.9 30.0-34.9 2 9 29 54 11 5 B 9 11 18 32 27

13 (PGDM Mid Term Exam 2007) (10 marks) Q 6: From the following data of weight of 122 persons determine the modal weight and average. Weight (in lbs.) No. of persons 100-110 110-120 120-130 130-140 140-150 150-160 160-170 170-180 4 6 20 32 33 17 8 2 (PGDM Mid Term Exam 2007) (10 marks)

Q 7: Below are monthly rents paid by 30 students who live off campus. (a) Group the data and construct frequency distribution (b) Find the mean, median, mode, coefficient of variation from grouped data (c) Comment on the shape of the frequency curve. (d) Loss of information has occurred in grouping the data. Comment 730 720 760 730 670 690 730 560 710 930 740 500 700 650 730 570 660 800 690 850 820 1030 930 840 740 600 720 620 620 700

(PGDM Mid Term Exam 2008) (10 marks) Q 8 : Describe the various Measures of Central Tendency. Write their advantages and dis-advantages. (PGDM HR Mid Term Exam 2008) (10 marks)

Q 9: Mark the correct answer against the following Multiple Choice Questions (PGDM HR Mid Term Exam 2009) (1 marks each) (a) When the means and sizes of different groups are known, it is not possible to calculate: (i) Mean but Median can be calculated (ii) Mean but Mode can be calculated (iii) both Mode or Median (iv) Mean but Mode & Median both can be calculated (v) None of the above (b) To find the median of the grouped data, we need to locate (i) The middle value of the data set (ii) The median class (iii) The central class (iv) The Open ended class (v) None of the above Q 10: A company manufacturing 10 KVA generators has divided one of its leading sales territories into three zones : Urban, semi-urban and rural. Ten salesmen working in the urban zone sold 450 units during the first six months of the year. Another ten assigned to semi-urban zone ended by selling 510 units in the same period. The rural zone where 20 salesmen worked sold 2000 units. The average sales of the company was 74 during the period of measurement. Give the formula used to calculate the average sales of the company clearly mentioning the meaning of the notations. (PGDM Mid Term Exam 2009) (1 marks)

Quantitative Techniques - I Topic wise unsolved questions from Previous Years Exam papers
EXERCISE 3 DISPERSION: MEASURES OF DISPERSION Computation of Range, Quartile Deviations, Mean & Standard Deviations, Coefficient of Variation, Percentiles & Deciles. Application of measures of dispersion in business world. Q 1: For the following data set, calculate the variance, the standard deviation, coefficient of variation, first quartile, third quartile and 87th Percentile.

Weight 130.5-140.5 140.5-150.5 150.5-160.5 160.5-170.5 170.5-180.5 180.5-190.5

Number of plots 10 20 30 20 10 10 (PGDM Mid Term Exam 2007) (10 marks)

Q 2: For the following data set, calculate the variance, the standard deviation, coefficient of variation, first quartile, third quartile and 87th Percentile. Weight 180.5-190.5 190.5-200.5 210.5-220.5 220.5-230.5 230.5-240.5 240.5-250.5 Number of plots 134 120 543 262 220 390 (PGDM Mid Term Exam 2007) (10 marks)

Q 3: The following table shows that monthly expenditures of 80 students of a University on breakfast: Expenditures (in Rs.) 78-82 73-77 68-72 63-67 58-62 No. of Students 2 6 7 12 18 Expenditures (in Rs.) 53-57 48-52 43-47 38-42 33-37 No. of Students 13 9 7 4 2

Calculate Quartile Deviation and Coefficient of Variation. (PGDM Mid Term Exam 2007) (10 marks) Q 4: Calculate the Quartile Deviation and coefficient of variation: Years 1914-1915 1915-1916 1916-1917 1917-1918 1918-1919 Area ( lakh acres) Yield (lakh bales) 152 114 138 154 144 49 51 50 45 40 Years 1919-1920 1920-1921 1921-1922 1922-1923 1923-1924 Area (lakh acres) Yield (lakh bales) 153 144 117 136 154 43 59 60 63 60

(PGDM Mid Term Exam 2007) (10 marks) Q 5: The adjoining table gives the frequency distribution of food expenditure per family per month among the working class families in the two localities. Find the standard deviation and coefficient of variations. The expenditure pattern in which locality is more consistent. Range of Expenditure Place A 15-19 20-24 25-29 30-34 35-39 40-44 25 280 300 200 60 35 No. of families Place B 40 260 400 210 70 20 (PGDM Mid Term Exam 2007) (10 marks)

Q 6: Application of Measures of Dispersion in Business World. (PGDM HR Mid Term Exam 2008) (4 marks) Q 7: Use of Statistical tools for Decision making in the situation of volatile stock market. (PGDM Mid Term Exam 2008) (5 marks) Q 8: The table below shows percentiles of height (in cm) for 20 year old males and females taken at different intervals of time in a particular nation. Selected Percentiles for Height of 20 Year Olds (cm) Gender Male Female 5% 165 153 25% 172 159 50% 177 163 75% 182 168 95 % 188 174

(a) Which measure of central tendency would be most appropriate to describe the entire set of data? (b) Calculate Quartile Deviation and comment on the height of the citizens. (PGDM Mid Term Exam 2008) (10 marks) Q 9: Risk of a Portfolio In the real world, investors may hold various securities and other assets. Any such collection of assets is called a portfolio. For example, if you have shares of the TISCO and RIL, you have a portfolio consisting of two shares. The return on a portfolio is equal to the weighted average of the returns on the assets in the portfolio. The weights used are the values of the individual assets in the portfolio. The Standard Deviation of the returns on a security measures the risk of investing in the security. In the same way, the Standard Deviation of a Portfolio measures the risk of investing in the portfolio. For a two asset portfolio, the standard deviation (p) is given by: ______________________________________ p = \ w12 12 + w22 22 + 2 r w1 w2 1 2

where, w1 and w2 are the weights for the assets in the portfolio. 1 and 2 are the standard deviations of the returns of the two assets respectively r is the coefficient of correlation between the returns of the two assets.

Given below are the returns (in percentage) of two securities A and B. Security A 16 10 20 14 Security B 20 14 26 30

(a) Which of the above two security should be chosen by the investor? (b) An investor has created a portfolio by assigning 40 % weightage to Security A and 60 % to Security B. What is his loss in the returns (in percentage) after the creation of this portfolio? (c) Comment on the volatility of the portfolio with respect to the individual volatility of the securities. (d) Can we generalize the trend of Stock Market based upon these two securities? If yes! How? Also give your opinion about the general market conditions based upon above example. (PGDM End Term Exam 2008) (20 marks) Q 10: Mark the correct answers against the following questions: (PGDM HR End Term Exam 2009) (1 mark each) (a) In a symmetrical frequency curve the best measure of central tendency is: (i) mean (ii) mode (iii) median (iv) All the above (v) None of the above (b) A small value of quartile deviation denotes: (i) Small variations in the central 50% of observations (ii) Large variations in the central 50% of the observations (iii) No variations in the central 50% of the data (iv) All the above (v) None of the above (c) The measurement of Standard deviation per unit mean is known as _______________ (d) While calculating the variance of a dataset (i) The difference between the mean and the observation is squared (ii) The modulus of the difference between mean and observation is considered (iii) The summation of the mean and an observation is considered (iv) The average of difference between the mean and the observation is considered (v) None of the above

(e) If the spread of score around the mean is small, which of the following are true? T1 -> Inter Quartile range will be small T2 -> Standard Deviation is small T3 -> The Coefficient of Variation will be small (i) T1 ant T2 (ii) T1 and T3 (iii) T2 and T3 (iv) T1, T2, T3 (v) None of the above (f) Which of the following is true : (i) standard deviation is independent of the change of origin and scale (ii) standard deviation is independent of the change of origin, but is dependent on the change of scale (iii) standard deviation is dependent on change of origin & scale (iv) standard deviation is dependent on the change of origin but is independent of the change of scale (v) None of the above Q 11: The following data give the number of passengers traveling by an airline from one city to another city in one week, 115 124 122 132 129 120 113 110 119 116

Calculate the mean and standard deviation and determine the percentage of cases that lie between. (i) 1 (ii) 2 (iii) 3 (iv) What percentage of cases lies outside these limits? (Meaning of notations used above: --> Standard Deviation and --> Mean) (PGDM Mid Term Exam 2009) (8 marks) Q 12: Rampack a student of PGDM programme. In the partial fulfillment of the requirements of the program he has completed summer training in one of the bluechip companies. His topic of summer project report is 'Market Analysis of Medical Electronics Equipment used at Critical Care Units.' During the course of the survey Rampack collected information from Senior Level Surgeons and Superintendents in the various Hospitals. One of the questions in the aforesaid survey was: Give your opinion on statement 'Quality comes with Price' while buying electronic critical care equipment. (10 being the highest and 1 being the lowest ratings) The data was collected in 3 separate categories. Hospitals with less than 25 beds, hospitals having number of beds between 25 to 100 and hospitals having more than 100 beds. The data collected has been reproduced in the following 3 tables:

Hospital with Number of Beds less than 25 Ratings 0 to 2 2 to 4 4 to 6 6 to 8 8 to 10 No. of Responses 0 3 5 10 4

Hospital with Number of Beds between 25 to 100 Ratings 0 to 2 2 to 4 4 to 6 6 to 8 8 to 10 No. of Responses 0 1 8 20 16

Hospital with Number of Beds more than 100 Ratings 0 to 2 2 to 4 4 to 6 6 to 8 8 to 10 No. of Responses 0 0 0 3 5

Describe the shape and size of the curve. Give your comments on the statement 'Quality comes with price' with respect to all the three categories mentioned above. Suggestions: First draw a curve as the per the data and redraw free hand curve with rounded edges to take out more meaningful information. (PGDM Mid Term Exam 2009) (3+4 marks) Q 13: The annual return of Jhamjham plc's common stock over the years 2003, 2004, 2005 and 2006 were 15%, 19%, -8 % and 14%. Answer the following questions. Questions (a) to (e) carry 1 mark each. Write down the correct answer in your answer sheet. (a) What is the Median return for the Jhamjham plc. ___________

(b) Assuming the returns of Jhamjham plc as population, what is the population variance _____ (c) A distribution of returns that has lesser percentage of small deviations from the mean and a greater percentage of extremely large deviations from the mean compared to a normal distribution: (i) is +vely skewed (ii) is platykurtic (iii) is leptokurtic (iv) is -vely skewed (v) None of the above (d) Which of the following is most accurate regarding a distribution of returns that has a mean greater than its median? (i) It is +vely skewed (ii) It is -vely skewed (iii) It is an symmetric distribution. (iv) All the above (v) None of the above (e) What inferences can be drawn from the above distribution of returns through the years 2003 -2006? (PGDM Mid Term Exam 2010) (5 marks)

Q 14: Below are the returns (%) on 20 industry groups of stocks over the past year: 12, -3, 18, 9, -5, 21, 2, 13, 28, -14, 31, 32, 5, 22, -28, 7, 9, 12, -17, 6 (a) What is the return on the industry group with the lowest rate of return in the top quartile (take it as 3rd quartile? (b) What is the 40th percentile? What is the range of the data? (PGDM Mid Term Exam 2010) (5 marks)