D 11958 (Pases:3) Name...............

Reg. No...........

THIRD SEMESTER (CBCSLUG) DEGN,EE EXAMINATION

NOVEMBER 2021
Common Course (B.Com./B.B.A.)

A11-BASIC NT]MERICAL METHODS

e0$-2O2O Adnissions)
Time : T$o Hours and a Half Maximum : 80 Marks
Section A
Answer at least tet questions.
Each question carri'es 3 marhs.
All questions can be attended'-
Ouerall Ceiling 30.

1. What do you mean by time value of money ?

2. What is conversion Period ?

3. What is co-efficient of variation ?
4. What is assumed mean method ?
5. What is positive skewness ?
6. What do you mean bY mode ?
7. What is geometric Progression ?
8. What you mean bY kurtosis ?
9. Find the 10th term of the series : 11, 15' 19, 23,""
l0.InhowmanyyearswillasumofRs.4,000yieldasimpleinterestofRs.l,440at12Eapet
annum ?

11. Calculate mean: 11,4,6,6, 8' 9,3

12. What is co-efEcient of range ?

13. What is quartile deviation ?

Turn over
 2 D 11958
t4. write down the formulae for calculating median from discrete and continuous data ?

15. What do you mean by a system of linear equations ?

(10x8=B0narks)
Slection B

Answer at lzast five qtustions.

Each quzstion carrics 6 marhs.
Nl quzstians can fu afiended.
Ouerall Ceiling 30.
16. The arithmetic mean between two numbers iE 75 and their geomekic mean is
21. Find the numbers.
17. Find the range and coefficient of range of the following data :

.4.5, 13.6, 18.9, 3{t.4, 6L.4,29.8

18 What do you nean by compound interest ? How it is difrerent from simple interest ?
19. If I(arl Pearson's co-efficient of ekewness is 0.21, mean is 4il and median is 40, find the co.efficient
of variation.

20. Mr. thomas inveeted an amount of Rs. 18,9fi) divided h two difrerent schemes
A and B at the
simple interest r ate of L4 % p.a. and 11 % p.a. respectively. If the total amount of simple interest
earned in 2 years be Rs. 8b08, what was the amourlt invested ia Scheme B ?

2t. Mr. {imal took a personal loan of Rs. 8,00,000. He is asked to repa.y the roan in 4 years and rate of
intereet i8 9 % p.a. Calculate EMI amount.

22. Solve the system ofequations :

2r +3y =$, il* + 5y = lQ.

Find the mean deviation and co-cefficient of mean deviation of3,6,6, ?, g, 11,
15, 16

(5x6=30marks)
Section C
Answer any two questiotts.
Eath question carrbs l0 marks.
24. What are the requisites of a good average ? T.is[ 6qt the merits aad demerits
of arithmetic mean.
Explain the empirical relation betweea mean, median and mode with a
suitable example.
 D 11958

(-s 1 (q.
2b. ff 4 andB= -:J then what is 3A - 28 ?
^=l-2
Is 1
[:

26. Solve the following system ofequations by using Cramer's rule :

2r + y -22 = -7, 3r -By - z =5, x-2y+32=6.

27. The following data gives the number of vehicles sold by a major Toyota Showroom in a day was
recorded for 10 working days. Find the inter quartile range, quartile deviation and its
co-efficient :

Day:12345678910
Frequency : 2O 15 18 5 10 17 21 19 25 28

(2 x 10 = 20 marks)
 , BBA3A11 _ BASIC NUMERICAL METHODS: SET 3 AIT{SWER KEY
Prrt A
/\ 1, The time value of money is the widely accepted theory that there is greater benefit to receiving a
sum ofmoney now ratber than an identical sum later. The time value ofmoney is a basic financial
$\ concspt that holds that money in the present is worth more than the same sum of money to be
received in the future. The time value of money (TVM) is a useful tool h helping you understand -

lhe worth ofmoney in relation to time. It is a formula often used by investors to better understand
the value ofmoney as it compares to its value h the future.

2. Conversion period refers to the period of time between interest paymeDts. It is how often the
interest is calculated over the term of the loan or investment. It must be determined for each year or
fraction of a year. e.g.: If the interest rate is compounded semi-annually, then the number of
conversion periods per year would be two. The interval of time between successive conversions of
interest into principal is called the interest period or conversion period and is usually either three
montbs, six months or one year, in which cases interest is said to be compounded quarteqy,
semiannually, or annually respectively.

3. The coefficient ofvariation (CD is a measure ofrelative variability. It is the ratio ofthe standard
deviation to the mean (average). In probability theory and statistics, the coefficisot of variation
(CV), also lorown as relative standard deviation (RSD), is a standardized measure of dispenion of
a probability distribution or frequency distributiori. The coefficient ofvariation (CV) is a statistical
measure ofthe dispersion ofdata points in a data series aroud the mean. Tbe coefficient ofvariation
represents the ratio ofthe standard deviation to the mean, and it is a useful statistic for comparing
the degree of variation &om one data series to another, even if tbe means are &astically differcnt
fiom one atrother. The coefficient ofvariation shows the extent ofvariability ofdata in a sample in
relation to the mean ofthe population

4. ln statistics the assumed mean is a method for calculating the aritbmetic mean and standard
deviation ofa data set. The assumed mean method is used for calculating mean or arithmetic mean
ofa grouped data. Ifthe given data is large, theu this method is recommended rather than a dkect
method for calculating mean. This method helps in reducing the calctlations a.ad results in small
numerical values. This method depends on estimating the mean and rounding to an easy value to
cdculate with. Again, this value is subhacted from all the sample values.

5. Positive Skewness means when the tail on the right side of the disaibution is longer or fatter. The
mean and median will be greater thau the mode. A righrskewed distribution has a long right tail.
Right-skewed distributions are also called positive-skew distributions. That's because there is a long
tail in the positive direction on the number line. The mean is also to the right ofthe peak.

6. The mode is the value that appears most ftequently in a data set. A set ofdata may have one mode,
. more than oae mode, or no mode at all. Example: in {6, 3, 9, 6, 6, 5, 9, 3} the Mode is 6 (it occurs
most oft€n).

7. Il mathematics, a geometric progression, also known as a geometric sequence, is a sequence of

numbers where each term after the tint is fomd by muttiplying tbe previous one by a fiied, non-
one number called the common ratio. For example, the sequence 2, 6, 18, 54, ... is a geometric
progression with com.mor ratio 3. A geometric sequence is a sequellce such that any elenent after
the first is ob6ined by multiplying the preceding element by a constant called ihe common ratio
which is denoted by r. The common ratio (r) is obtained by dividing any term by the preceding term.
1
 ,' Kurtosis is a statistical measure that defines holv heavily the tails
oI a distribution differ from the
tails of a normar distribution. rn other words, kurtosis identifies
whether the tails of a given
distribution contain extreme values. Kurtosis (Ku) is a measure of relative peakedness
of a
frequency distribution. The tree forms ofkurtosis are mesokurtic,
reptokutic, and pratykunic.

9. a= first term: I l, d= common difference: 4

now,
according to the forrnula for finding the nth temr,
tn= a+(n-l) xd
tl0: I l+(10-l) x4
tl0= I l+ 9x4
tlF I l+36
tl0= 47
hence, the l0th term= 47

10. We lcrow that, the formula for simple interest:

S.l.=[PxRxT]/l00Where,S.I.=Simplelnteresr=1,140,p=principal=4000T=Time:?
R= Rate oflnterest = l2%

Substituting the values in the fomrula

+1,140 = [4000 x 12 x T] / 100
+ 1440 = [4000 x l2 x T] / 100
+T=1214=3}T,ARS

ll, Mean = sum ofobservatiotry tro.ofobservations

=l l+4+6+6+8+9+3/'t
= 47t7
=6.71

12. Rangc is defined as the differencc between the maximum and minimum valuc
in a set ofdata and
coeflicient of Rrnge is the relative measure of the dispersion of the range. It is defined
as the
relativc measure ofthe distributioa based on the range ofauy give' data set,
which is the difference
betweeo the maximum and minimum yalue in the given set.
Coefficient of rang€ : @ - S) / (L + S) where L - Large value; S _ Smallvalue

13. Qurrtile deviation as the differance between the fi,'t quartile and the third quanile in the &equency
distsibution table. This difference is known as the interquadile range. when
the difference is aiviaea
by two, it hllrrirn as quartile deviation or semi-iaterquartile raugi.
Quartile deviation is a location-
based measure ofdispersion. It measures tle average amormt by which the first and third quardles
deviatc &om the second quartile, ftat is, the median. The quartile deviation (eD)
is a measure of
dispersion used only with the median and indicates the dispersion ofthe data in the
middle half of
the distribution.

14, For Discrete or Individuat series

Ifn is odd, the median equals the [(n+l)/2]th observation.
Ifn is eve., then the median is given by the mean of(n/2)th observation and [(r/2)+ I ]th observation

2
 Eor Continuous Series

Medjan=t+ (.r...) - n

I :
lower limit of median class
n = no. ofobservations
cfdenotes cumulative frequency ofthe class prcceding the median
class
f= frequency of median class
h = class size

15. A-system of linear equations is just a set oftwo or more linear

equations. In mathematics, a system
oflinear equations is a collection ofone or more rinear equations involviug
the same set ofvariables.
A system of lircar equations is usually a set of two or more rinear
equations with two or more
variables Here are two linear equations: 2x+y=5,
-x+y-2. Together they are a system of linear
equations.

Part B
16. Given:
The arithmetic mean of two numbers is 75, The geomekic mean of two
numbers is 2l
Let 'a' & "b' be the two positive numbers
(a+by2 = 7s
a+b :75*2= 150
a = 150-b (,
cM = ./ab =21
ab =212=441
a = 4411b (iD
By substitution method, we get the two numbers are 147 and 3

17.
Range = Highest Value - Lowest Value
Range = L-S = 61.4-13.6
:47.8

Coefficient <if range = (L-Sy(L+S)

L-S = 61.4- 13.6= 47.8
L+S = 61.4+ 13.6 = 75
Coefficient of range : 47.5115
= 0.64

18. compoutrd ilterest is the addition of interest to the principal sum of a loan or
deposit, or in other
words' interest on interest It is the result of reinvesting interest, rather than paying it
out, so that
interest in the next period is then eamed on the principar sum olus previousry accumulated
interest.
compoutrd interest accrues and is added to the accumulated interest ofprevious periods;
it includes
interest on interesl

l-
 Simple lnterest and compouhd lnleresl Differences

Simple lnterest Compound Interesl

Paralneter

Delinition Simple lnterest can b€ defined as Compound lntereslcan be deined as lvhenlhe

lhe sum Paid back for using the sum principal amounl exceeds the due date for
borowed money, over a fixed paymenl along wilh the rate of inleresl, for a

Period of time- Period of time.

Formula s.l =(PxTxR)/100 C.l. = P(l+R/,d)l- P

The retum is much less€t when The retum is much higher

Retum
Amounl
! compared to ComPound lnterest.

Principal The principal amounl is conslant The principalamounl keeps on varying during ihe
Amount entire borrolvmg Period

Ihe gro}1 th increases quite rapldly in this .npthod'

GroMh The growth ,emains quite u.iform
in lhis meihod-

lnleresl Ttre interest charged on is for the The inlerest charged on it is for the principal and

Charged princiPal amount. accumulated interest'

19. Given SK = 0.21, mean : 43 and median

: 40
SK = 3(mean-median)/SD
0.21 :3 (43-40ySD
SD =910.21 :42.857
Coefficient of Variation, CV = SD'Mean x 100
= 42-857143 x 100
=99.67

20. Atrswer: Rs '6400

Let the sum invested in SchemeAbe Rs. x and that in scheme B be Rs-
(13900'x)
(x x14x2\ tt *zi
*"n' .
[-,oo .J [- roo
'ttt3goo'x)x = 3508
J

+ 28r - 22, = 350800 - (13900 x 22)

* 6! = 45000
+ x = 7500.
g
So, sum invested in Scheme = Rs. (13900 - 7500) = Rs 6400

21. Loan EMI is ?y'66. Total Interest Payable

:58,345 and Total Payment (Principal + IDterest) is
3,58,345

22.2x+ 3y =8,3x+ 5y = l0
x= (8-3y/2

3x(8-3YY2+5Y=10
4
 t24-9Y + 1gY
=29
y =20-24= 4
Therefore, x = (8+12\2 =2012: l0
Solution is (10,4)

23. Me€n = (3 +6+ 6+7+8 + ll + 15 + l6y8 = 7218 :9

Value Distance from
9
1 6
6 3
6 3
7 2
8 1

1l 2
l5 6
'7
t6

Mean Deviation =
(6 + 3 + 3 + 2 + I + 2 + 6 + 7)18 30/8 =3'75 =
CoelEcient of Ee{n deviation = MD/tIesn = 3'7519 = O'4161

Part C
the
24. One of the most iDporta objectives of statistical data is to get ons single value that describes
characteristics ofthe entirc mass data. such a value is called the central value or an average. An
average is a single value that represents a group ofvalues. It may be defined as that value of
distribution which is considercd as the most rePresentativ€ value for a group ofnumbeB. It is a
significant single figure which depicts the characteristic ofthe whole group. Its value lies
so=mewhere between the largest and the smallest items. FoI this reason, an average
is frequently
refeEed to as a messure ofcentral tendency.

Requisites of a Sood aYerage

. l.It should be easy to understand
. 2.It should be simple to comPute
o 3.It shoutd be based on all the items
. 4.It should not be unduly affected by extreme items
r 5.It should be rigidly defined
. 6.lt should be caPable of further algebraic treatment
. 7.It should have sampling stability

Merits of arithmetic mean

. It is easy to calculate and simple to understand
o It based on all observations and it can be regarded as representative ofthe given data
. It is capable of beiag treated mathematically and hence it is widely used in statistical
analysis.
. Arithmetic mean can be computed even if the detailed distribution is not loown but some
of the observation and number ofthe observation are known'
. It is least affected by the fluctuation of sampling

5
 Demerits of arithmetic mean

o It can neither bc determined by inspection or by grryhical location

o Arithmetic mean cannot be computed for qualitative rtata like data on intelligence
honesty
and smoking habit etc
It is too much affected by extrme obscwadons and hcncc it is not adequately r€presented
'o
Arithmetic mean cannot be computed w-hen class intervals have opcn ends

Empirical relrtion bctween mean, m€diatr rtrd mode

In the case ofa moderarely skewed distrrlution, i.e. in general, the difference between
mean and
mode is equal to three times the diffsence between the mean and median.
In the case ofa frequency
distribution which has a symmetricar frequency cuivg the empiricar relation
states tbat
meao l
median = mode.

Empirical relationship between mean, median and mode is:

Mode=3Medhn-2Mern

25.

It
To find 3A., muttiply all the enries ofA by 3:

3 x (-3) 3x I -93
Thcreforc 3.,4 = 3 x (-2)
3x5 3
3x4
x (-I) j-l -6 t2
15 -3

To find 38, multiply all the entries of B by 2:

2xt 2x (-3)
Thcrcfolc 28 : 2x0 2x (-2)
2x(-2) 2x4 l
t: t: -:l
l-, .]
-93 fs -17 0
Theref<xe 3A - 28 - -6 12 I0 -:l -6 l0
15 -3 L, sl) I 19 -li
26.

xl x2 x3 b
f--F
t2l -2 -l
', l1 -l 5

3 I 3 6

Write down the maiu matrix aDd fnd its determinant

6
 t -_l
x1 x2 x3

I 2 I

2 3 -3 I

3 I 3
L=-26
Replace the lst column ofthe main matsix with the solutiotr vector
atrd find its determinant

r xt i x2 x3
I

I I -2

2 3 -l ,

3 6 -2 3

Ll = -26
Replace the 2nd corumn ofthe main matrix qrith the solution vector
and rrnd its determiDant

xl x2 x3

I 2

2 3 -l

3 it 3
M=26
Replace the 3rd corumn ofthe main matrix with the solution
vector and fmd its detenninant

xl x2 x3

I 2 I -l
) 3 -3 f

3 I -2 6
xl = Lr I L= (-26) I (-26) = |
x2=d2tL=26t(-26)=_t
x3 = L3 t L= (-26) I (_26)= t
Solution set: X = l, Y = -1, Z = f (1, -1, t)
Note: The studeDt can also get the same set of answcrs
by using substitution method (linear equation
in 3 variables).

7
17. Sorted Data - 5, 10, 15, l?, 18,19,?0,21,25,28 and I (number ofdata points): l0

First Quartile Q1 = "ir th term. Quartile Deviation = Semi-lnter Quutile Range

1Tr th term z.75th tertu Qr{r
= =
2.

= 2nd term + 0.75 x (3rd term - 2nd terrn) _ 22-13.75

-2
= 10 + 0.75 x (15 - 10)
2
= l0 + 3.75
= 4.125
= 13.75

3(',+1) Coefficient of Quartiie Deviation

Third Quartile Q: = 4
th teuD.

- 3(151)
th term = 8.25th term =ffi"00
= 8th term + 0.25 x (9th term - 8th term) =ffi x too
= 2l + 0.25 x (25 - 2l) =ffi x 100

=21 +l = 23.08
- 1.,

Inter Quartile Range = Q3-Q1 = 22-13.75 : 8.25

Solution No: 2 (It's elso correct)

Fist Quartile Ql: 15
Second Quartile Q2 = 18.5
Third Quartile Q3 =
2l
Isterquartile Range IQR = 6
Coefficietrt ofQuartile Deviation CQD: 0.1667