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Seat No.: _________ Enrolment No._______________

GUJARAT TECHNOLOGICAL UNIVERSITY
MCA SEM-III Examination- Dec.-2011

Subject code: 630003 Date: 16/12/2011
Subject Name: Statistical Methods
Time: 02.30 pm-05.00 pm Total marks: 70

Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a)
Define the following terms in brief:
i. Skewness
ii. Ogive
iii. Correlation
iv. Confidence Interval

v. Mutually Exclusive Events

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(b) In a study of job satisfaction, a series of tests was administered to 50
subjects. The following data were obtained: higher scores represent
greater dissatisfaction. Construct a stem-and-leaf display for the data.

87 76 67 58 92 59 41 50 90 75
80 81 70 73 69 61 88 46 85 97
50 47 81 87 75 60 65 92 77 71
70 74 53 43 61 89 84 83 70 46
84 76 78 64 69 76 78 67 74 64
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(c) Determine whether the following statements are true or false:
I. One advantage of a histogram in comparison with a frequency
polygon is that it more clearly shows each separate class in the
distribution.
II. The value of every observation in the data set is taken into account
when we calculate its median.
III. A measure of the peakedness of a distribution curve is the skewness.
IV. The difference between the highest and the lowest observations in
the data set is called the quartile range.
V. The set of all possible outcomes of an experiment is called the
sample space for the experiment.
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Q.2 (a) You are given the following frequency distribution.

Year 2002 2003 2004 2005 2006 2007 2008 2009
Dividend
payment
2.2 2.4 3.0 5.0 6.8 8.1 9.0 9.8

Determine Mean, Variance, Standard Deviation, and Coefficient of
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Variation

(b) 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?
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OR
(b) A physical therapist at Gujarat Technological University knows that the
football team will play 40% of its games on artificial turf this season. He
also knows that a football players chances of incurring a knee injury are
50% higher if he is playing on artificial turf instead of grass. If a players
probability of knee injury on artificial turf is 0.42, what is the probability
that:
I. A randomly selected football player incurs a knee injury?
II. A randomly selected football player with a knee injury incurred the
injury playing on grass?
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Q.3 (a) Assuming that half of the Indian population is vegetarian. Estimate how
many investigators out of 100 will report that 3 or less are vegetarian in
the sample of 10 individuals.
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(b) If the prices of new cars increase an average of four times every 3 years,
find the probability of five or more price hikes in a randomly selected
period of 3 years.
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(c) In a production process the diameter of items is distributed normally with
mean 4.3 cm and variance 0.09. 200 items are having less than 4 cm
diameter. Estimate the total number of items in the production.
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OR
Q.3 (a) The probability that a bomb dropped from an aero plane will hit the target
is 0.4. Five bombs are dropped from the aero plane to destroy a bridge. 2
bombs are sufficient to destroy the bridge. What is the probability that the
bridge will be destroyed?
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(b) Past police records indicate a mean of 5 accidents per month at a
dangerous intersection. Find out the probability of 3 accidents in a given
period of one month.
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(c) A machinery company has received a big order to produce electric motors
for a manufacturing company. In order to fit in its bearing, the drive shaft
of the motor must have a diameter of 5.1 + 0.05 (inches). The companys
purchasing agent realizes that there is a large stock of steel rods in
inventory with a mean diameter of 5.07, and a standard deviation of
0.07. What is the probability of a steel rod from inventory fitting the
bearing?
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Q.4 (a) The Gujarat Technological University is conducting a study on the
average weight of the many bricks that make up the Universitys
walkways. Workers are sent to dig up and weigh a sample of 421 bricks
and the average brick weight of this sample was 14.2 lb. It is a well-
known fact that the standard deviation of brick weight is 0.8 lb. What is
the interval around the sample mean that will include the population mean
95.5 percent of the time?
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(b) In a sample of 500 people from a village, 280 are found to be rice eaters
and the rest are wheat eaters. Can we assume that both the food articles
are equally popular?
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(c) A manufacturer supplies the rear axles for trucks. These axles must be
able to withstand 80000 pounds per square inch in stress tests, but an
excessively strong axle raises production costs significantly. Experience
indicates that the standard deviation of the strength of its axles is 4000
pounds per square inch. The manufacturer selects a sample of 100 axles
from production, tests them, and finds that the mean stress capacity of the
sample is 79600 pounds per square inch. Test the hypothesis at 5% level
that the sample has come from the same population.
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OR
Q.4 (a) When a sample of 70 retail executives was surveyed regarding the poor
November performance of the retail industry, 66 percent believed that
decreased sales were due to unreasonably warm temperatures, resulting in
consumers delaying purchase of cold-weather items. Construct a 95
percent confidence interval for the true proportion.
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(b) In a hospital 480 female and 520 male babies were born in a week. Do
these figures confirm the hypothesis that males and females are born in
equal numbers?
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(c) GE has developed a new bulb whose design specifications call for a light
output of 960 lumens compared to an earlier model that produced only
750 lumens. The company data indicate that the s. d. of light output for
this type of bulb is 18.4 lumens. From a sample of 20 new bulbs, the
testing committee found an average light output of 954 lumens per bulb.
At a 0.05 significance level, can GE conclude that its new bulb is
producing the specified 960 lumen output?
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Q.5 (a) Nine computer-components dealers in major metropolitan areas were
asked for their prices in $ on two similar colour inkjet printers. The results
of this survey are given below. At = 0.05, is it reasonable to assert that,
on average, the Apson printer is less expensive than the Okaydata printer?

Dealer 1 2 3 4 5 6 7 8 9
Apson 250 319 285 260 305 295 289 309 275
Okaydata 270 325 269 275 289 285 295 325 300
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(b) Students Safe Driving has targeted seat-belt usage as a positive step to
reduce accidents and injuries. Before a major campaign at one college, 44
percent of 150 drivers entering the college parking lot were using their
seat belts. After the seat-belt awareness program, the proportion using
seat-belts had risen to 52 percent in a sample of 200 vehicles. At a 0.04
significance level, can the students conclude that their campaign was
effective?
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(c) A brand manager is concerned that her brands share may be unevenly
distributed throughout the country. In a survey in which the country was
divided into four geographical regions, a random sampling of 100
consumers in each region was surveyed, with the following results:

Region
NE NW SE SW

Total
Purchase the brand 40 55 45 50 190
Do not purchase 60 45 55 50 210
Total 100 100 100 100 400

Develop a table of observed and expected frequencies and calculate the
sample
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value. State the null and alternative hypotheses and test whether
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brand share is the same across the four regions at = 0.05.
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Q.5 (a) The data below are a random sample of 9 firms chosen from the Digest
of Earnings Reports in The Wall Street Journal on September 2011.
I. Find the mean change in earnings per share between 2010 and
2011.
II. Find the standard deviation of the change and the standard error of
the mean.
III. Were average earnings per share different in 2010 and 2011? Test
at = 0.02.

Firm 1 2 3 4 5 6 7 8 9
2010
earnings
1.38 1.26 3.64 3.50 2.47 3.21 1.05 1.98 2.72
2011
earnings
2.48 1.50 4.59 3.06 2.11 2.80 1.59 0.92 0.47

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(b) A manufacturer of pet foods was wondering whether cat owners and dog
owners reacted differently to premium pet foods. They commissioned
a consumer survey that yielded the following data:

Pet Owners Surveyed No. Using Premium Food
Cat 280 152
Dog 190 81

Is it reasonable to conclude, at = 0.02, that cat owners are more likely
than dog owners to feed their pets premium food?
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(c) An advertising firm is trying to determine the demographics for a new
product. They have randomly selected 75 people in each 5 different age
groups and introduced the product to them. The results of the survey are
given below:

Age group
Future Activity 18-29 30-39 40-49 50-59 60-69
Purchase
frequently
12 18 17 22 32
Seldom purchase 18 25 29 24 30
Never purchase 45 32 29 29 13

Develop a table of observed and expected frequencies, and calculate X
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value. For the level of significance is 0.01, should the null hypothesis be
rejected?
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