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Question No. a i) a ii) b) c i) c ii) Total

Maximum Marks 2 2 4 3 4 15
Students Score

Indian Institute of Management Bangalore
QMM101: Introduction to Statistical Methods

Time: 60 min. Name:___________________
Max Points: 15 Roll No.:_________________

This is an open-book, open-note exam; however you are not allowed to share material
with other students. Do not seek any clarifications. Answer all questions in the space
provided. Do not attach any additional sheets; use the back sides, if necessary .

Upon taking the oath as the Head of the State of Shangla, Shuddhubabu sits down to
identify the main problems of the State. The work culture of the people of Shangla has
been on the downswing for some time and now it has become a very serious issue.
Shuddhubabus own party may have contributed substantially to this; it made employees
more aware of their rights for which now they are prepared to fight, but adequate care
has not been taken to teach them the associated responsibility. In any case, Shuddhubabu
decides to address this concern and take actions against government employees who
routinely report to their work late. Of course, the first problem was to identify if this
indeed is a serious problem, and if so whether severity is more or less uniform among
different types of employees. To start with, he decides to limit his survey to secretaries
and officers in government offices; but decided to get comparable survey done among
similar employees in non-government offices who are supposed to bear roughly similar
responsibilities. The survey is done on a fixed date (so that the effect of other factors will
be removed to the extent possible) from a randomly chosen selection on employees. To
start with, it is noted if the person reported to his/her work in time; if (s)he did not, the
delay in reporting to work is recorded. The summary of the survey is included below:

No. of
No. of
reported in
Delay for those who came
Mean Standard
Secretaries 155 34 46 14
Officers 150 69 43 15
Secretaries 200 139 27 12
Officers 40 15 20 16

Note: For questions a) and b), you should consider only those who did not report in time.
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a) Based on the survey, calculate a two-sided 95% confidence intervals for
i) the population variance of delay in reporting to work of the Officers in
the non-government offices.

ii) the population variance of delay in reporting to work of Secretaries in
the Government offices.

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b) From the above survey, can Shuddhubabu conclude that there is significant
difference between the average delay in reporting to work between the secretaries
and officers in the non-government offices?

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c) Shudhhubabu has decided that he would take disciplinary action against any
employee if the sample attendance records provide significant evidence that the
employee comes late on more than 20% of the days. Shuddhubabu feels that he
cannot afford to take to chance of more than 1% to punish someone who is late
on at most 20% of the days. At the same time, Shuddhubabu is adamant to send a
strong message that indeed he means business. Thus he wants the scheme to take
disciplinary action at least 99% of the times correctly against someone who is late
on more days than (s)he is on time.
i) Formulate Shuddhubabus problem as a Statistical testing of
hypothesis problem, by clearly stating the null and the alternative
hypothesis. What are the roles/terminology for the boldfaced numbers
given above, i.e. 20%, 1% and 99%, in your formulation?

ii) For at least how many days, does Shuddhubabu need to observe the
employee to make his scheme successful? In how many of these days,
can the employee afford to come late and yet escape the wrath of
[Hint: It would be necessary to observe the employee for at least a month.]