MBA SEMESTER 1 MB0040 STATISTICS FOR MANAGEMENT- 4 Credits (Book ID: B1129) Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions Q1. (a) Statistics is the backbone of decision-making. Comment. (b) Statistics is as good as the user. Comment. Answer: a. Due to advanced communication network, rapid changes in consumer behaviour, varied expectations of variety of consumers and new market openings, modern managers have a difficult task of making quick and appropriate decisions. Therefore, there is a need for them to depend more upon quantitative techniques like mathematical models, statistics, operations research and econometrics. Decision making is a key part of our day-to-day life. Even when we wish to purchase a television, we like to know the price, quality, durability, and maintainability of various brands and models before buying one. As you can see, in this scenario we are collecting data and making an optimum decision. In other words, we are using Statistics. Again, suppose a company wishes to introduce a new product, it has to collect data on market potential, consumer likings, availability of raw materials, feasibility of producing the product. Hence, data collection is the back-bone of any decision making process. Many organisations find themselves data-rich but poor in drawing information from it. Therefore, it is important to develop the ability to extract meaningful information from raw data to make better decisions. Statistics play an important role in this aspect. Statistics is broadly divided into two main categories. Below Figure illustrates the two categories. The two categories of Statistics are descriptive statistics and inferential statistics.

For complete assignment visit www.studenthelp.tk

Q2. Distinguish between the following with example. (a) Inclusive and Exclusive limits. (b) Continuous and discrete data. (C) Qualitative and Quantitative data (d) Class limits and class intervals. Answer: (a) Class intervals are of two types; exclusive and inclusive. The class interval that does not include upper class limit is called an exclusive type of class interval. The class interval that includes the upper class limit is called an inclusive type of class interval. Example:

In above table, the class 0 9 includes the value 9.

In above table, the the class 0 10 does not include the value 10. If the value of 10 occurs, it is included in the class 10 20.

For complete assignment visit www.studenthelp.tk

Q3. In a management class of 100 students three languages are offered as an additional subject viz. Hindi, English and Kannada. There are 28 students taking Hindi, 26 taking English and 16 taking Kannada. There are 12 students taking both Hindi and English, 4 taking Hindi and Kannada and 6 that are taking English and Kannada. In addition, we know that 2 students are taking all the three languages. i) If a student is chosen randomly, what is the probability that he/she is not taking any of these three languages? ii) If a student is chosen randomly, what is the probability that he/ she is taking exactly one language? Answer: a) Our sample space is all the students in the school. There are 100 students, so the size of our sample space is 100. Our event is that a student drawn at random is not taking any language classes. Call this event A P(A) = the number of ways A could happen / the size of the sample space = the number of students taking no language class / 100 So we must find the number of students who are not taking any language class. Let H be the number of students taking Hindi, E be the number of students taking English , and K be the number of students taking Kannada.

We draw a Venn diagram.

For complete assignment visit www.studenthelp.tk

Q4. List down various measures of central tendency and explain the difference between them? Answer: Graphical representation is a good way to represent summarised data. However, graphs provide us only an overview and thus may not be used for further analysis. Hence, we use summary statistics like computing averages. to analyse the data. Mass data, which is collected, classified, tabulated and presented systematically, is analysed further to bring its size to a single representative figure. This single figure is the measure which can be found at central part of the range of all values. It is the one which represents the entire data set. Hence, this is called the measure of central tendency. In other words, the tendency of data to cluster around a figure which is in central location is known as central tendency. Measure of central tendency or average of first order describes the concentration of large numbers around a particular value. It is a single value which represents all units. The two most common measures of central tendency are the median and the mean, which can be illustrated with an example. Suppose we draw a sample of five women and measure their weights. They weigh 100 pounds, 100 pounds, 130 pounds, 140 pounds, and 150 pounds.

For complete assignment visit www.studenthelp.tk

Q5. Define population and sampling unit for selecting a random sample in each of the following cases. a) Hundred voters from a constituency b) Twenty stocks of National Stock Exchange

c) Fifty account holders of State Bank of India d) Twenty employees of Tata motors. Answer: Population: The totality of all units or individuals in a survey is called population or universe. If the number of objects in a population is finite then it is called finite population otherwise it is known as infinite population. The data that describes the characteristics of the population is known as parameter. In the figure below, the total number of eight consumers constitutes the entire population.

Units: In a Statistical survey, the objects on which the characteristics are measured are called units or individuals. Sample A sample is a part or subset of the population. By studying the sample, you can predict the characteristics of the entire population from where the sample is taken. The data that describes the characteristics of a sample is known as statistic.

For complete assignment visit www.studenthelp.tk

Q6. What is a confidence interval, and why it is useful? What is a confidence level? Answer: In using interval estimates, we are not confined to 1,2 and 3 standard errors; for example, 1.64 standard errors include about 90 percent of the area under the curve; it includes 0.4495 of the area on either side of the mean in a normal distribution. Similarly, 2.58 standard error includes about 99 percent of the area, or 49.51 percent on either side of the mean. This probability indicates how confident we are that the interval estimate will include the population parameter. A higher probability means more onfidence. In estimation, the most commonly used confidence levels are 90 percent, 95 percent, and 99 percent, but we are free to apply any confidence level.

For complete assignment visit www.studenthelp.tk

MBA SEMESTER 1 MB0040 STATISTICS FOR MANAGEMENT- 4 Credits (Book ID: B1129) Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions Q1. What are the characteristics of a good measure of central tendency? (b) What are the uses of averages? Answer: The characteristics of a good measure of central tendency are: Present mass data in a concise form The mass data is condensed to make the data readable and to use it for further analysis. Facilitate comparison It is difficult to compare two different sets of mass data. But we can compare those two after computing the averages of individual data sets. While comparing, the same measure of average should be used. It leads to incorrect conclusions when the mean salary of employees is compared with the median salary of the employees. Establish relationship between data sets The average can be used to draw inferences about the unknown relationships between the data sets. Computing the averages of the data sets is helpful for estimating the average of population. Provide basis for decision-making In many fields, such as business, finance, insurance and other sectors, managers

For complete assignment visit www.studenthelp.tk

Q2. Your company has launched a new product .Your company is a reputed company with 50% market share of similar range of products. Your competitors also enter with their new products equivalent to your new product. Based on your earlier experience, you initially estimated that, your market share of the new product would be 50%. You carry out random sampling of 25 customers who have purchased the new product ad realize that only eight of them have actually

purchased your product. Plan a hypothesis test to check whether you are likely to have a half of market share. Answer: Null hypothesis H0: P=Ps Alternative hypothesis P < Ps Let the level of significance be 2% 2% = Z tab = 2.05 Z = |P Ps| PQ/n P = Population proportion = 50% = 0.5 Ps = Sample Population = 8/25 = 0.32 Q = 1-P=1 0.5 = 0.5 N = 25

For complete assignment visit www.studenthelp.tk

Q3. The upper and the lower quartile income of a group of workers are Rs 8 and Rs 3 per day respectively. Calculate the Quartile deviations and its coefficient? Answer: Unlike range, quartile deviation does not involve the extreme values. It is defined as: Q.D. = (Q3 Q1)/2 Q.D = (8 3) /2 = 5 /2 = 2.5 Coefficient of Q.D

For complete assignment visit www.studenthelp.tk

Q4. The cost of living index number on a certain data was 200. From the base period, the percentage increases in prices wereRent Rs 60, clothing Rs 250, Fuel and Light Rs 150 and Miscellaneous Rs 120. The weights for different groups were food 60, Rent 16, clothing 12, Fuel and Light 8 and Miscellaneous 4. Answer: Cost of living Index = 200%

Food Rent Cloth F&L Misc. total

Price Y 60 250 150 120

weights 60 16 12 8 4 100

the weighted arithmetic mean is given by Cost of living Index X =

For complete assignment visit www.studenthelp.tk

Q5. Education seems to be a difficult field in which to use quality techniques. One possible outcome measures for colleges is the graduation rate (the percentage of the students matriculating who graduate on time). Would you recommend using P or R charts to examine graduation rates at a school? Would this be a good measure of Quality? Answer: The four different components of Statistics as per Croxton and Cowden (shown in figure) can be used to analyse and measure graduation rate in college. As per Croxton and Cowden analysis we need to use P-Chart.

1. Collection of Data Careful planning is needed while collecting data. The different methods used for collecting data such as census method, sampling method and so on. The investigator has to take care while selecting appropriate collection methods. In the census method, every unit or object of the population is included in the investigation. For example, if we want to study the average annual income of all the families in a given area which has 500 families, we must study the income of all 500 families. When the population is large, census method would be difficult. A sample of units or objects is taken from the population to describe the overall characteristics

For complete assignment visit www.studenthelp.tk

Q6. (a) Why do we use a chi-square test? (b) Why do we use analysis of variance? Answer: (a) use of Chi-Square tests allow us to do a lot more than just test for the quality of several proportions. If we classify a population into several categories with respect to two attributes (such as age and job performance), we can then use a Chi-Square test to determine whether the two attributes are independent of each other. So, Chi-Square tests can be applied on contingency table. Testing of Hypothesis for Large and Small Samples, We used one-sample tests to determine whether a mean or a proportion was significantly different from a hypothesised value. In the twosample tests, we examined the difference between either two means or two proportions, and we tried to learn whether this difference was significant. Suppose, we have proportions from five populations instead of only two, then for these cases, the methods for comparing proportions described for testing hypothesis for two-

For complete assignment visit www.studenthelp.tk