9 March

2024

Question Bank

QM- Bits Pilani

Descriptive Statistics

1. The growth in bad-loans at Ajay Bank over the last few years follows. Calculate the

average percentage increase in bad-loans over this time period. If this rate

continues, estimate the percentage increase in bad debts for 1997, relative to 1995.

1989 1990 1991 1992 1993 1994 1995

0.11 0.09 0.075 0.08 0.095 0.108 0.120

2. Europe Bank has shown the following percentage increase in net worth over the last

5 years. What is the average percentage increase in net worth over the 5-year

period?

1992 1993 1994 1995 1996

5% 10.5% 9.0% 6.0% 7.5%

3. Vijay is calculating the average growth factor for his pizza store over the last 6 years.

Using a geometric mean, he comes up with an answer of 1.24. Individual growth

factors for the first 5 years were 1.19, 1.35, 1.23, 1.19 and 1.30 but Vijay lost the

records for the sixth year, after he calculated the mean. What was it?

4. The Indian consumers’ Bureau has conducted a survey of cable television providers

in the state. Here are the number of channels they offer in basic service:

32 28 31 15 25 14 12 29 22 28 29 32 33 24

26 8 35

Calculate the median number of channels provided.

Calculate the mean number of channels provided.

Which value is the better measure of the central tendency of these data?

5. A librarian polled 20 different people as they left the library and asked them how

many books they checked out. Here are the responses:

10 2 2 3 4 2 1 2 0 2 2 3 1 0 7 3 5 4 2

Compute the mode for this data set.

6. For the following data, compute the interquartile range.

99 75 84 61 33 45 66 97 69 55

72 91 74 93 54 76 52 91 77 68

7. The administrator of a Georgia hospital surveyed the number of days 200 randomly

chosen parents stayed in the hospital flowing an operation. The data are:

Hospital Stay in Days 1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24

Frequency 18 90 44 21 9 9 4 5

a. Calculate the standard deviation and mean.

b. According to Chebyshev’s theorem, how many stays should be between 0 and 17

days? How many are actually in that interval?

c. Because the distribution is roughly bell-shaped, how many stays can we expect

between 0 and 17 days?

8. Find the standard deviation and variance of the below sample data

Class Frequency

100-199 10

200-299 14

300-399 16

400-499 18

500-599 24

600-699 46

700-799 65

At one of the consulting companies, new hires were from mainly six specializations:

Marketing, Finance, HR, Corporate Governance, Court Management, and Innovation

and Sustainability. It is found that there are lots of variations in the pay packages that

these students get, ranging from Rs. 10-12 lakhs per annum to Rs. 18-20 lakhs per

annum. The data about the students taking up different specializations and the range

of salaries they were offered in a particular year is shown below in the tabular form

Salary Offered (per annum)

10-12

lakhs
12-14

lakhs

14-16

lakhs

16-18

lakhs

18-20

lakhs

Total

Students

Specializ

ation

Marketing 25 26 35 25 11 122

Finance 13 19 37 17 894

HR 1 7 4 1 0 13

Operations &

Systems 12511 10

Business

Analytics 12521 11

Corporate

Governance 24211 1

Use any two graphical methods to represent the above frequency distribution.

b) Calculate any three measures of the absolute deviation of salary offered for the

entire batch.

c) Which specialization has the maximum variation in the salaries offered? Which

descriptive statistics will help you to arrive at the above decision?

10. Please find the following from the below data. Further, arrange the data into 10

class intervals.

a. Maximum and Minimum Values

b. Range
c. Mean, Median and Mode

d. Calculate cumulative frequency and relative frequency

14 41 13 50 4

33 20 38 34 49

23 34 34 2 21

21 9 16 33 2

12 45 3 36 22

46 1 20 25 19

11 42 31 27 6

15 7 16 7 24

15 33 36 2 23

27 4 22 22 37

11. A professor is trying to show his students the importance of quizzes even though 90% of the

final grade is determined by exams. He believes that the higher the quiz grade, the higher

the final grade. A random sample of 15 students in his class was selected with the data given

beloQuiz Average Final Averag e

9 65

92 84

72 77

90 80

95 77

87 81

89 80

77 84

76 80

65 69

97 83

42 40

94 78

62 65

91 90
State the dependent (y) variable and the independent variable (x).

b. Draw a scatter diagram of this data.

c. Does the relationship between the variables appear to be linear or curvilinear?

d. Does the professor’s belief appear to be justified? Explain your reasoning.

12. Zippy Cola is studying the effect of its latest advertising campaign. People chosen at

random were called and asked how many cans of Zippy Cola they had bought in the

past week and how many Zippy Cola advertisements they had either read or seen in

the past week.

X (number of ads) 3 7 4 2 0 4 1 2

Y (Cans purchased) 11 18 9 4 7 6 3 8

a. Develop the estimating equation that best fits the data.

b. Calculate the sample coefficient of determination and the sample coefficient of

correlation

the number of acres burned is normal. What is the probability that between 2,500 and

4,200 acres will be burned in any given year?

Q- 8 Most graduate schools of business require applicants for admission to take the

Graduate Management Admission Council’s GMAT examination. Scores on the GMAT are

roughly normally distributed with a mean of 527 and a standard deviation of 112. What is

the probability of an individual scoring above 500 on the GMAT?

Q- 9 The life of the bulbs has a normal distribution with a mean value of 2000 hours and a

standard deviation of 200 hours. What is the probability that the light bulb will last for at

least 2100 hours?

Q-10 The annual salary of an entry-level statistics major (in thousands of dollars) is normally

distributed with a mean of 75 and a standard deviation of 12. X ∼ N ( μ = 75, σ = 12 ). What

is the minimum salary a statistics major should aim for in order to earn amongst the top

10%

Bayes Theorem

Three persons A, B and C have applied for a job in a private company. The chance of their
selections is in the ratio 1 : 2 : 4. The probabilities that A, B and C can introduce changes to

improve the profits of the company are 0.8, 0.5 and 0.3, respectively. If the change does not

take place, find the probability that it is due to the appointment of C.

In a neighbourhood, 90% children were falling sick due flu and 10% due to measles and no

other disease. The probability of observing rashes for measles is 0.95 and for flu is 0.08. If a

child develops rashes, find the child’s probability of having flu.

There are three identical cards except that both the sides of the first card is coloured red,

both sides of the second card is coloured blue and for the third card one side is coloured red

and the other side is blue. One card is randomly selected among these three cards and put

down, visible side of the card is red. What is the probability that the other side is blue