UNIGLOBE COLLEGE

Level: Masters Programme: MBA Course: Business Statistics Year : 2012 Full Marks: 100 Time : 4hrs.

Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks. Attempt all the questions.

Q1.(a)Packet expenses of random sample of recent graduating accounting majors were obtain. 212 222 229 271 290 251 261 321 240 252 261 275 282 244 310 321 345 380 290 280 245 301 306 307 294 341 311 297 295 294 351 352 295 297 307 232 244 256 245 247 231 221 Construct Leaf-Stem exploratory graph and calculate median value. 271 282 295 294 308 243 372 291 294 324 295 245 [5] 360 292 324 326 294 244

(b)Mr. Jeeban Bist , marketing director for a leading mobile phone, obtained records of minutes used by a random sample of 60 subscribers to the companys low end users plan (250 peak minutes per month ). Data is the list of minutes used by subscribers in the sample during a particular month. 271 236 252 254 263 266 262 237 247 283 244 263 263 262 288 252 264 263 237 252 242 248 263 255 271 291 263 243 288 252 273 298 248 294 288 245 263 299 281 279 247 264 264 235 232 249 251 245 234 235 247 246 289 234 Construct frequency distribution using class with 10 Draw histogram Mode value Construct relative frequency distribution Draw less than Ogive curve Estimate expected frequency within 34 to 47 What do the data indicates? 222 267 247 294 226 251 255 256 247 262 254 225 288 263 226 284 244 222 278 271 181 255 269 265 285 251 243 288 278 279 272 277 275 298 245 234

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Q2.(a). Wes and Jennie Moore, owners of Moores Foto Shop in Western Pennsylvania, are considering two investment alternatives asset A and asset B. They are not sure which of these two single assets is better, and ask Sheila Newton, a financial planner, for some assistance. What suggestion should be given to owners of Moores Foto Shop Sheila Newton as financial advisor? Year Rate of Return Asset A Asset B 5 years ago 11.3% 9.4% 4 year ago 12.5 17.5 3 year ago 13.0 13.3 2 year ago 12.0 10.0 1 year ago 12.2 11.0 [10] (b) A group of 13 students is studying in Pokhara University for five weeks. As part of their study of local economy, they each purchased an Oriental rug and arrange for shipment back to United States. The shipping time, in days, for each rug was 31 31 42 39 42 43 34 30 28 36 37 35 40 Estimate the percentage of days that are within two standard deviation of the mean. Is it likely to take two months for delivery? [10] Q3. Students in a large accounting class were asked to rate the course by assigning a score of 1, 2, 3, 4, and 5 to the course. A high score indicates that the students received greater value from the course. The accompanying table shows proportions of students rating the course in each category. Rating SectionA SectionB SectionC (Probability) (Probability) (Probability) 1 0.07 0.09 0.15 2 0.19 0.16 0.26 3 0.28 0.29 0.18 4 0.30 0.26 0.30 5 0.16 0.20 0.11 Find the mean and standard deviation of the rating. Compare the rating of the three sections based on the risks. [20] Q4. These are the total fares (in dollars) collected Tuesday by the 20 taxi belonging to City Transit, Ltd. 147 95 93 127 143 101 123 83 135 129 185 92 115 126 157 93 133 125 132 51 Compute the five summary numbers of these data and comment on shape of the distribution. [10] Q5.(a) The HAL Corporation wishes to improve the resistance of its personal computer to diskdrive and key board failures. At present, the design of the computer is such that disk-drive failures occur only one-third as often as key board failures. The probability of simultaneous disk-drive and key board failures is 0.05 (i) If the computer is 80 per cent resistant to disk-drive and /or keyboard failure, how low must the disk-drive failure probability be?

(ii) If the key board is improved so that it fails only twice as often as the disk-drive (and the

simultaneous failure probability is still 0.05) , will the disk-drive failure probability from part (a) yield a resistance to disk-drive and / or keyboard failure higher or lower than 90 per cent? [5] (b) The health department routinely conducts two independent inspections f each restaurant with the restaurant passing only if both inspectors pass it. Inspector A is very experienced, and, hence, passes only 2 per cent of restaurants that actually do have health code violations. Inspector B is less experienced and passes 7 per cent of restaurants with violations. What is the probability that

(i) Inspector A passes a restaurant, given that inspector B has found a violation? (ii) Inspector B passes a restaurant, with a violation, given that inspector a passes it?
(iii) A restaurant with a violation is passed by the health department?

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Q6.(a) A company is considering upgrading its computer system, and a major portion of the upgrade is a new operating system. The company has asked an engineer for an evaluation of the operating system. Suppose the probability of a favourable evaluation is 0.65. If the probability the company will upgrade its system given a favourable evaluation is 0.85, what is the probability that the company will upgrade and receive a favourable evaluation? Factory produces electric bulbs by three machines. First, second and third machine produces 3000, 2500 and 4500 bulbs respectively. According to past experience, it is known that the defective bulbs produced by the three machines are 30, 45, and 50 respectively. One bulb is drawn at random from a days total production and found to be defective. Find the Probability that the defective bulb is from machine (i) first (ii) second and (iii) third. [10] (b) An accountant is to audit 24 accounts of a firm. Sixteen of these are of highly valued customers. If the accountant selects four of the accounts at random, what is the probability that he chooses at least one highly valued account? Assuming that the sexes are equally likely, what is the probability that a family of six children will have (i) all boys (ii) on boys (iii) at least four boys and (iv) at the most two boys [5]