'~

Department of management Studies

SMV 793 (Statistics for Management)
Major Exam (MBAFT)

Max Time: Two Hours Max Marks: 40

Ql. In a bolt factory, three machines viz., Ml, M2, M3 manufacture respectiveJy 25,35 and
40 percent of the total output. Out of the total output produced by them 5, 4 and 2 percent
are defective bolts respectively. A bolt is drawn at random and found defective. What is
the probability that it was manufactured by machine Ml.

Q2 A company manufacturing tyres claims that tyre-life follows normal distribution with
average life of50,000 kIn and a standard deviation of2000? A sample of35 tyres is taken and
the mean life of these was found to be 45000. Can we accept the claim made by the
manufacturer?

Q3. A manager in a company was studying the relationship between his travel expenses in rupees
(Y) for 102 trips and the duration in days (X). A summary of the data is given below:

~X = 510, ~Y = 7140, ~X2 = 4150, ~XY = 54900, ~y2= 740200

Estimate the regression equation of travel expenses on duration in days. If a trip takes 7 days,
how much money should the manager be allowed so that he is not short of money.

Q4. What is hypothesis testing? What are the steps involved wile performing hypothesis testing?

Q5. Why managers need to have knowledge of statistics?