Subject Expert QA – 1 - (2015- 16) Module – 1

MODULE - 1

Q – 1 Construct a Histogram and O-gives chart.

0-20 20-30 30-40 40-50 50-100
13 27 43 31 9 [S – 13 – N]

Q – 2 Construct a Histogram and a Frequency Polygon for the following data. [W - 13]
(Graph paper not required).
Class 10-20 20-30 30-40 40-50 50-60 60-70 70-80
Frequency 9 7 10 6 13 18 15
Q – 3 Determine interquartile range for the following data.
44 18 39 40 59 46 59 37 15 73
23 19 90 58 35 82 14 38 27 24
71 25 39 84 70 [W – 11 – N] & [S – 15]

Q – 4 Compute Q1 and P24 for following observations. 3 - [W – 11 – N] & [S – 13]

16 28 29 13 17 20 11 34
32 27 25 30 19 18 33
`
Q – 5 A sample of 10 adults was asked to report the number of hours they spent on the internet the
previous month. The data is given below. 0, 7, 12, 5, 33, 14, 8, 0, 9, 22.
Calculate the following.
1) mea n number of hours
2) median number of hours
3) standard deviation of the number of hours
4) Pearsons’ measure of skewness
5) comment on the nature of the distribution of number of hours spent on the internet. [S – 12]

Q – 6 Compute Mean and Standard Deviation from following table.

Class 0-20 20-40 40-60 60-80 80-100
Frequency 32 16 13 10 19 [S – 13 – N]

Q – 7 Calculate Mean and Standard Deviation from the following table. [W - 13]
Class 18 – 24 24 – 30 30 – 36 36 – 42 42 – 48 48 – 54 54 – 60 60 – 66 66 - 72
Frequency 17 22 26 35 33 30 32 21 15

Q – 8 Calculate Mean, Median, Mode and Standard Deviation of the date given below:
X 24-34 34-44 44-54 54-64 64-74 74-84 TOTAL
f 10 16 40 24 8 2 100
Is it symmetrical? Why? [S – 10]

Q – 9 (I) Calculate the arithmetic mean and the median of the frequency distribution given below. Also
calculate the mode using empirical relation among the mean, median and mode: 5 - [S – 14 - N]
Height
(in cm) 130-134 135-139 140-144 145-149 150-154 155-159 160-164
No. of
Students 05 15 28 24 17 10 01

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert

Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 10 The following are prices of shares of a company from Monday to Saturday;
Day Monday Tuesday Wednesday Thursday Friday Saturday
Price
(Rs) 200 210 208 160 220 250
Calculate range and coefficient of range. 2 - [S – 14 - N]

Q – 11 A research agency administers a demographic survey of 100 telemarketing companies to

determine their size of operations. During the survey each of them asked to report how many
employees now work in their telemarketing operation. Following is the frequency distribution.
No. of Employees working in No. of companies
Telemarketing
0-20 32
20-40 16
40-60 13
60-80 10
80-100 19
Calculate the mean, mode and variance for the data. [S – 12 – N] & [S – 15]

Q – 12 The radio music listener market is diverse .Listener for mats might include adult contemporary,
album rock, top 40, oldies, rap, country and western, classic, and jazz. In targeting audience,
market researchers need to be concerned about the ages of the listener attracted to particular
formats. Suppose a marketer researcher surveyed a sample of 170 listener of oldies stations and
obtained the following age distribution. [W – 11] & [W – 14]
Age Frequency
15-under 20 9
20-under 25 16
25-under 30 27
30-under 35 44
35-under 40 42
40-under 45 23
45-under 50 7
50-under 55 2
I. What are the mean and modal ages of oldies listeners?
II. What are the variance and standard deviation of the age’s oldies listeners?

Q – 13 Compute the mean, mode, variance, and standard deviation of the following sample data:
Class Interval Frequency
10-15 6
15-20 22
20-25 35
25-30 29
30-35 16
35-40 8
40-45 4
45-50 2 [W – 12 –N]

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert

Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 14 The Indian department of the interior release figures on mineral production. Following are the 10
leading states in nonfuel mineral production in the India.
State Value (Rs.millions)
Gujarat 3350
Bihar 2800
Madhapradesh 2550
Goa 2050
Maharastra 1920
Assam 1670
Andrapradesh 1660
Sikkim 1570
Rajasthan 1420
UP 1320
I. Calculate the mean, median & mode.
II. Calculate the range, interquartile range, mean absolute deviation, sample variance & sample
standard deviation. [W – 10 – E]

Q – 15 The number of Indian cars in service by top car rental companies in a recent year according to
auto rental news as follows:
Company No of cars in
Tata Indica 460000
Maruti 800 350000
Alto 322000
Zen 220000
Swift 146000
Tata Nano 78000
Centro 51000
Volkswagon 15000
Ritz 12000
Nissan 12000
Chevrolet 12000
Fiat 8000
Eon 8000
Compute the mode, median and mean. Comment from the above, which one is better measure of
central tendency for the given data? Why? [S – 14]

Q – 16 Five students of an Engineering program at certain Institute were selected at random. Their
intelligent Quotient (I.Q.) and the marks obtained by them in one paper were as given below
I.Q. 120 110 130 115 125 120
Marks (Out of 100) 85 80 90 88 92 87
Calculate coefficient of correlation. [S – 11]

Q – 17 Suppose the following data represents the average stock prices of two stocks A and B observed for
10 weeks.
Stock A 18 20 15 16 21 20 12 16 19 20
Stock B 28 18 24 32 18 29 23 38 28 18
Compute the coefficient of variation for each stock. Which stock is more risky? [S – 12]

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert

Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 18 In manufacturing plant, machine A produce 20% of certain products, machine produce 30% of this
products and machine C produce 50% of this products. 5% of machine A products are defective,
10% of machine B products are defective and 8% of machine C products are defective. The
company inspector has just inspected a product from this plant and has found it to be defective.
Determine the revised probabilities that the sampled products was produced by A, B or C. [S – 15]

Q – 19 Raju George, executive of customer relations for Apple airline, is studying his company’s
overbooking problem. He is concentrating on the three late night flights out of SVP Airport in
Ahmedabad city. In the last year, 5, 6 and 7 percent of the passengers on the Mumbai, Delhi and
Goa flights, respectively, have been bumped. Further, 50, 20 and 30 percent of the late night Apple
airline passengers at SVP Airport take the Mumbai, Delhi and Goa flights, respectively. What is the
probability that a bumped passenger was scheduled to be on the
A. Mumbai Flight B. Delhi Flight C. Goa Flight [W – 14 – N]

Q – 20 The XYZ magazine is studying the sales of the magazines 25 towns in Gujarat. The data has
compiled in the following frequency distribution.
Sales(000) Frequency
0 - 5000 2
5000 – 10000 6
10000 – 15000 10
15000 – 20000 5
20000 – 25000 2
The management wants to know the answers for the following questions:
i. What is the overall average sales figure of the magazine?
ii. How much variability is there in terms of sales in different towns [W – 9]

Q – 21 Satyam department store has been the target of many shoplifters during the past month, but
owing to increased security precautions, 250 shoplifters have been caught.
Each shoplifter’s sex is noted; also noted is whether the shoplifter was a first time or repeat
offender. The data are summarized in the table.
Sex First time offender Repeat offender
Male 60 70
Female 44 76
104 146
Assuming that a shoplifter is chosen at random, find
(a) The probability that the shoplifter is male.
(b) The probability that the shoplifter is first time offender, given that the shoplifter is male.
(c) The probability that the shoplifter is female, given that the shoplifter is a repeat offender.
(d) The probability that the shoplifter is female, given that the shoplifter is a first time offender.
(e) The probability that the shoplifter is both male and a repeat offender. [S – 11 – E]

Q – 22 The percentage of people (to the nearest 10) responding to an advertisement is a random variable
denoted by X with the following distribution.
X (%) 0 10 20 30 40 50
p(x) 0.1 0.2 0.35 0.2 0.1 0.05
1) What is the expected percentage of people responding to an advertisement?
2) What is the SD of percentage of people responding to an advertisement?
3) Find the probability that more than 20% will respond to the advertisement. [W – 13 - N]

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert

Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 23 The following data are the result of a historical study of the number of flows found in a porcelain
cup produced by manufacturing firm. Use these data and the associated probabilities to compute
the expected number of flaws and the standard deviation of flaws. [W – 11 – N]
Flaws 0 1 2 3 4
Probability 0.461 0.285 0.129 0.087 0.038
Q – 24 A merchant buys ice-creams at Rs. 5 per cup and sells at Rs. 8 per cup. The stock of the unsold
cup/s at the end of the day he has to clear at Rs. 2 per cup. On the basis of past experience, the
probability distribution is prepared as under:
Daily sales (cups) 15 16 17 18
Probability 0.1 0.2 0.4 0.3
1. Find ‘Expected Monetary Values’ (EMVs) of all alternatives and suggest the most profitable
alternative on the basis of EMVs.
2. Prepare ‘Expected Opportunity Loss’ (EOL) matrix and suggest the most profitable alternative
on the basis of EOLs. [S – 10]

Q – 25 As a fund-raiser for a student organization, some students have decided to sell individual pizzas
outside the Union on Friday. Each pizza will sell for Rs. 1.75 and costs the organization Rs. 0.77.
Historical sales indicated that between 55 and 60 dozen pizzas will be sold with the probability
distribution given below: [S – 11 – E]
Dozens of pizzas 55 56 57 58 59 60
Probability 0.15 0.20 0.10 0.35 0.15 0.05
To maximize the profit contribution, how many pizzas should be ordered? Assume pizzas must be
ordered by the dozen. What is the expected value of perfect information in this problem? What is
the maximum amount the organization would be willing to pay for perfect information?

Q – 26 A company which produces cheese slices and other cheese related products, has to decide about
the production of sliced cheese as to how much to produce per week. The probability of sales, in
kgs., is
Demand in Kgs 200 210 220 230 240 250
Probability 0.1 0.2 0.3 0.2 0.1 0.1
A kg of slice cheese sells for Rs. 100 in the market and has a cost of Rs. 75. Any unsold cheese is
sold to a local restaurant for Rs. 60. How much company should produce for deriving maximum
profit? [S – 11]

Q – 27 Jason has just bought a VCR from Jim’s Videotape Service at a cost of Rs.300. He now has the
option of buying an extended service warranty offering 5 years of coverage for Rs.100. After
talking to friends and reading reports, Jason believes the following maintenance expenses could be
incurred during the next five years. Find the expected value of the anticipated maintenance costs.
Should Jason pay Rs.100 for the warranty?
Expense 0 50 100 150 200 250 300
Probability 0.35 0.25 0.15 0.10 0.08 0.05 0.02 4 - [W – 12 –N]

Q – 28 A company received 10 tubes packed in a box. The probability that a tube is defective is 0.1.
Assuming independence, find
(a) The probability that there are 3 defective tubes
(b) The expected number of defective tubes.
(c) The standard deviation of the number of defective tubes. [W – 12]

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert

Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 29 John, who frequently invests in the stock market, carefully studies any potential investment. He is
currently examining the possibility of investing in the Trinity Power Company. Through studying
past performance, John has broken the potential results of the investment into five possible
outcomes with accompanying probabilities. The outcomes are annual rates of return on a single
share of stock that currently costs Rs.150. Find the expected value of the return for investing in a
single share of Trinity Power. If John purchases stock whenever the expected rate of return
exceeds 10 percent will he purchase the stock, according to these data?
RoI (Rs.) 0.00 10.00 15.00 25.00 50.00
Probability 0.20 0.25 0.30 0.15 0.10 5 - [W – 12 –N]

Q – 30 A production department uses a sampling procedure to test the quality of newly produced items.
The department employs the following decision rule at an inspection plan: If a sample of 14 items
has a variance of more than 0.005, the production line must be shut down for repair. The following
data have just been collected: 3.43, 3.45, 3.43, 3.48, 3.52, 3.50, 3.39, 3.48, 3.41, 3.38, 3.49, 3.45,
3.51, and 3.50. [W – 13 - N]
1) Should the production line be shut down? Why or why not?
2) Find the Pearson’s measure of skewness and comment on the nature of the distribution.

Q – 31 A small fruit merchant has got a problem on hand. He has to decide how many dozens of
particular type of fruit to stock on a given day. Total demand per day is uncertain. He has analyzed
the past data and found the following pattern of distribution based on 360 days.
Total demand per # of days each demand Probability of
day ( in dozens) Level was recorded demand
25 72 0.20
30 90 0.25
35 108 0.30
40 90 0.25
Fruits not sold on any day perish and have to be thrown out. Selling price of the fruit per dozen is
30. Cost of procurement and other incidentals add to 20 per dozen. How many dozens per day
should the merchant stock? [W – 9]

Q – 32 Two sets of candidates are competing for the positions on the board of directors of a company.
The probability that the first set and the second set will win are 0.6 and 0.4 respectively. If the first
set wins, the probability of introducing a new product is 0.8 and the second set wins is 0.3. What is
the probability that the new product will be introduced? [W – 9]

Q – 33 A hair stylist has been in a business one year. Sixty percent of his customers are walk in business.
If he randomly samples eight of the people from last week’s list of customers, what is the
probability that three or fewer were walk ins? If this outcome actually occurred, what would be
some of explanations for it? [W – 9]

Q – 34 An inspector in the Alpha Laval pipe line has the task of comparing the reliability of two pumping
stations. Each station is susceptible to two kinds of failure: pump failure and leakage. When either
or both occurs, the station must be shut down. The data at hand indicate that the following
probabilities prevail:
Station P( pump failure) P( leakage) P(Both )
1 0.07 0.10 0
2 0.09 0.12 0.06
Which station has the higher probability of being shut down? [S – 14]
MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert
Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 35 Calculate 3 years weighted averages using weight 2:1:3 for the given data: 3 - [S – 10]
Year 1 2 3 4 5 6 7
Y 10 13 14 12 16 15 18
z
Q – 36 Calculate the value of 5C3 and 6P3. 3 - [W – 11 – N]

Q – 37 The mean number of patients admitted per day to the emergency room of a small hoszpital is 3.5.
If on a given day, there are only five beds available for new patients, what is the probability the
hospital will not have enough beds to accommodate its newly admitted patients? [W – 10]

Q – 38 Three families have respectively 3 boys and 4 girls, 2 boys and 3 girls, 4 boys and 2 girls. One child
is selected at random from each family. Find the probability that the selected group of 3 children
will have all girls. 3 - [S – 10]

Q – 39 Suppose 18 major computer companies operate in the country and that 12 are located in
Bangalore. If three computer companies are selected randomly from the entire list, what is the
probability that one or more of the selected companies are located in the Bangalore city?
4 - [W – 12 –N]

Q – 40 (1) A batch of 50 parts contains six defects. If two parts are drawn randomly one at a time without
replacement, what is the probability that both parts are defective?
(2) If this experiment is repeated, with replacement, what is the probability that both parts are
defective? [S – 13]

Q – 41 In an industry a managing director is to be appointed from three persons X, Y, and Z. The chance of
selection of X is twice than that of Y, while the chance of selection of Y is twice than that of Z. The
probabilities that these persons, if selected as managing director will increase the bonus of the
workers are respectively 0.2, 0.3 and 0.4. If the bonus has increased in the industry, find
probability that X is selected as managing director. 4 - [S – 10]

Q – 42 A company is producing the personal computers have shipped 16 computers, knowing that four of
them have defective wiring. The purchaser wants to inspect three the computers for its wiring.
What is the probability that the purchaser finds following
(i)No defective computers. (ii)Exactly three defective computers. [W – 11 – N]

Q – 43 In a society there are two clubs. 60% members of the society are members of club A and 29%
members of the society are member of club B while 13% members of the society are member of
both clubs. Suppose if one society member is selected at random, [W – 11 – N]
(i) What is the probability that he is member of club A or club B?
(ii) What is the probability that he is neither member of club a nor club B?
(iii) What is the probability that he is not the member of club A but member of club B?

Q – 44 Mr. Patel applies for a housing loan of Rs. 15, 00,000 from a bank for new house. The bank
informed him that over the years, the bank has received about 2920 loan applications per year
and that the probability of approval was on was 0.92.
a) Mr. Patel wants to know the average and standard deviation of the number of loans
approved per year
b) Suppose bank actually received 2850 loan applications per year with an approval
probability of 0.92. What are the mean and standard deviation now? [W – 10]
MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert
Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 45 A company uses three methods to encourage collection of delinquent accounts. From past
collection records, it learns that 70% of the accounts are called on personally, 20% are phoned,
and 10% are sent a letter. The probabilities of collecting an overdue amount from an account with
the three methods are 0.75, 0.60, and 0.65 respectively. The company has just received payment
from a past-due account. What is the probability that this account:
I. Was called on personally?
II. Received a phone call?
III. Received a letter? [W – 12 –N]

Q – 46 Big Bazaar has been the target of many shoplifters during the past month, but owing to increased
security precautions, 250 shoplifters have been caught. Each shoplifter’s sex is noted; also noted is
whether the perpetrator was a first-time or repeat offender. The data are summarized in the table:
Sex First-time offender Repeat Offender
Male 60 70
Female 70 50
Assuming that an apprehended shoplifter is chosen at random, find:
I. The probability that the shoplifter is male
II. The probability that the shoplifter is female
III. The probability that the shoplifter is both female and a first-time offender
IV. The probability that the shoplifter is a first-time offender, given that the shoplifter is male
V. The probability that the shoplifter is female, given that the shoplifter is a repeat offender
VI. The probability that the shoplifter is female, given that the shoplifter is a first-time offender
VII. The probability that the shoplifter is both male and a repeat offender. [W – 12 –N]

Q – 47 Small cars get better gas mileage, but they are not as safe as bigger cars. Small cars accounted for
18% of the vehicles on the road, but accidents involving small cars led to 11,898 fatalities during a
recent year. Assume the probability a small cars is involved in an accident is 0.18. The probability
of an accident involving a small car leading to fatality is 0.128 and the probability of an accident
not involving a small car leading to a fatality is 0.05. Suppose you learn of an accident involving a
fatality. What is the probability a small car was involved. [W – 12]

Q – 48 A man has the choice of running a hot-snack stall or an ice cream stall at a seaside resort during
the summer season. If it is a fairly cool summer, he should make Rs. 5000 by running the hot-
snack stall, but if the summer is quiet hot he can only expect to make Rs. 1000. On the other hand,
if he operates the ice cream stall, his profit is estimated at Rs. 6500 if the summer is hot, but only
Rs. 1000 if it is cool. There is 40% chance of the summer is being hot. Should he opt for running
the hot snacks stall or the ice cream stall? What is the expected value of perfect information?
[S – 12]

Q – 49 A company is in a process of appointing a new CEO. The president (production), president

(marketing), and president (personnel) are in a race, and the probability that any one among the
three gets appointed is in the proportion of 5:3:2 respectively. The probability that president
(production) if selected will introduce the voluntary retirement scheme (VRS) is 0.4.The
probabilities that the two if selected will introduce thez VRS scheme are 0.6 and 0.8 respectively.
What is the probability that VRS will be implemented? [W – 10]

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert

Subject Expert QA – 1 - (2015- 16) Module – 1
Q – 50 Suppose that you are given a decision situation with three possible states of nature are P (s1) =
0.2, P (s2) = 0.5, and P (s3) = 0.3. With sample information I, P (I/s1) = 0.1, P (I/s2) = 0.05 and P
(I/s3) = 0.2. Compute the revised or posterior probabilities: P (s1/I), P (s2/I), and P (s3/I).
[W – 12]

Q – 51 A doctor has decided to prescribe two new drugs to 200 heart patients as follows: 50 get drug A,
50 get drug B , and 100 get both. The 200 patients were chosen so that each had an 80 percent
chance of having a heart attack if given neither drug. Drug A reduces the probability of a heart
attack by 35 percent, drug B reduces the probability by 20 percent and the two drugs, when taken
together, work independently .if a randomly selected patient in the program has a heart attack,
What is the probability that the patient was given both drugs? [W – 11]

Q – 52 An insurance company believes that people can be divided into two classes-those who are prone
to have accidents and those who are not. The data indicate that an accident-prone person will
have an accident in a one-year period with probability 0.1 and probability for all others is 0.05.
Suppose that the probability that a new policy holder is accident prone is 0.2. Find the probability
that he/she is accident prone given that a new policy holder has an accident in the first year. Also
find the probability that a new policy holder has an accident in the first year. Define clearly your
events of interest. [W – 13 - N]

Q – 53 In a manufacturing plant, machine A produces 10% of a certain product, machine B produce 40%
of this product and machine C produces 50% of this product. 5% of machine A products are
defective, 12% of machine B products are defective and 8% of machine C products are defective.
Determine the revised probabilities that the sampled product was produced by machine A,
machine B and machine C. Apply your knowledge of Bayes theorem. [W - 13]

Q – 54 A public interest group was planning to make a court challenge to auto insurance rates in one of
the three cities: A, B, or C. The prob. that it would select A was 0.40, B-0.35, and C is O.25. The
group knows that it had a 45%chance of a favorable ruling if it chose A, 60% if it chooses B and
35% if it chose C. If the group did receive favorer able ruling, which city did it most likely choose?
Use your Knowledge of Bayes’ theorem. [S – 13 – N]

Q – 55 A movement of Food and Health department found approximately 0.27 of all ready to eat food
products did not carry nutritional labeling, whereas 83 % of bakery products did not carry
nutritional labeling. If these two categories combined, 60% would be ready to eat food and 40%
would be bakery products. A researcher is blindly given a product from these two categories and
is told that the product does not have nutritional labeling, revise the probability that the product is
a ready to eat product. [S – 12 – N]

MBA Sem – 1 K.D. SiR - 9898281509 Subject Expert