1.

You went to the panchayat office of your area to collect data

regarding income of the residents of your area. The panchayat
office provided you the following graph and told you that there
are 2500 people in your area.

Monthly income
30000 35000
3% 3%

25000 20000
44% 36%

24000
5
14%

Answer the following questions

a. How many people are earning
i. Rs. 20000 per month
ii. Rs. 24000 per month
iii. Rs. 25000 per month
iv. Rs. 35000 per month
v. Rs. 30000 per month

The panchayat office also provided you the following graph.

The graph is showing
16

14

12

10

6
4
4

0
10th Pass 12th Pass Graduation Master Degree

peoples’ earnings and their educational qualifications. The X axis

represents the educational qualifications while the Y axis
represents the percentage of people.
Answer the following questions:
a. How much percent of resident of this locality are 10 th
pass, 12th pass, Graduation and Master Degree?
b. How much percent of people are 10th pass and earning Rs.
20000?
c. How much percent of people are 10th Pass and earning
25000?
d. How much percent of people are 12th Pass and earning
20000?
e. How much percent of people are 12th Pass and earning
25000?
f. How much percent of people are 12th Pass and earning
30000?
g. How much percent of people are graduate and earning
20000?
h. How much percent of people are graduate and earning
 24000?
i. How much percent of people are graduate and earning
25000?
j. How much percent of people are graduate and earning
24000?
k. How much percent of people are master degree and
earning 20000?
l. How much percent of people are master degree and
earning 24000?
m.How much percent of people are master degree and
earning 25000?
n. How much percent of people are master degree and
earning 35000?

2. Davis furniture company has a revolving credit agreement with

the First National Bank. The loan showed the following ending
monthly balances last year.

Jan. Apr. 72800 July 58700 Oct

121300 52800
Feb. May 72800 Aug. 61100 Nov
112300 49200
Mar. June 57300 Sep. Dec
72800 50400 46100
The company is eligible for a reduced rate of interest if its average
monthly balance is over 65000. Does it qualify?

3. Child Care Community Nursery can continue to be supported by

the country social services office as long as the average annual
income of the families whose children attend the nursery is below
 12,500. The family income of the attending children are
14500 15600 12500 8600 7800
6500 5900 10200 8800
14300 13900
a. Does Child-Care qualify now for country support?
b. If the answer to part a is no, by how much must the average
family income fall for it to qualify?
c. If the answer to part a is yes, by how much can average family
income rise and Child-Care still stay eligible?
4. Calculate the arithmetic mean from the following grouped data

Class Frequency
0-49.99 78
50.00-99.99 123
100.00-149.99 187
150.00-199.99 82
200.00-249.99 51
250.00-299.99 47
300.00-349.99 13
350.00-399.99 9
400.00-449.99 6
450.00-499.99 4

5. The following data represents the age of patients admitted to a

small hospital on February 28, 1996.

85 75 66 43 40
88 80 56 56 67
89 83 65 53 75
87 83 52 44 48
 a. Construct a frequency distribution with classes 40-49, 50-59,
etc.
b. Compute the sample mean from the frequency distribution.
c. Compute the sample mean from the raw data.
d. Compare parts (b) and (c) and comment on your answer.

6. The frequency distribution below represents the time in seconds

needed to serve a sample of customers by cashiers at BullsEye
Discount Store in December 1996.

Time in Frequency
seconds
20-29 6
30-39 16
40-49 21
50-59 29
60-69 25
70-79 22
80-89 11
90-99 7
100-109 4
110-119 0
120-129 2
Compute the sample mean using frequency distribution

7. A professor has decided to use a weighted average in figuring final

grades for his seminar students. The homework average will count
for 20 percent of a student’s grade; the mid term, 25 percent; the
final 35 percent; the term paper 10 percent and quizzes 10
percent. Form the following data compute the final average for
 the five students in the seminar.

Studen Homework Quizzes Paper Mid term Final

t
1 85 89 94 87 90
2 78 84 88 91 92
3 94 88 93 86 89
4 82 79 88 84 93
5 95 90 92 82 88

8. Meridian Trucking maintains mileage records on all of its rolling

equipment. Here are the weekly mileage records for its trucks.

810 450 756 789 210 657 589 488 876 689

1450 560 469 890 987 559 788 943 447 775

a. Calculate median miles a truck traveled.

b. Calculate the mean of 20 trucks.

c. Compare parts a and b and explain which one is a better measure of

the central tendency of the data.

13. The North Carolina Consumers’ Bureau has conducted a survey of

cable television providers in the state. Here are the number of channels
they offer in the basic service

32 28 31 15 25 14 12 29 22 28 29 32 33
24 26 8 35

a. Calculate the median number of channels provided

b. Calculate the mean number of channels provided.

c. Which value is better measure of the central tendency of these data
and Why?

14. For the following frequency distribution

(a) which numbered item represents the median?

(b) Which class contains the median?

(c) What is the estimated value of the median of these data?

Class Frequency
10-19.5 8
20-29.5 15
30-39.5 23
40-49.5 37
50-59.5 46

Class Frequency
60-69.5 52
70-79.5 84
80-89.5 97
90-99.5 16
100 or 5
above

16. The Chicago Transit Authority thinks that excessive speed on its
buses increases maintenance cost. It believes that a reasonable median
time from O’Hare Airport to John Hancock Centre is about 30 minutes.
From the following sample data (in minutes) can you help them to
determine whether the buses have been driven at excessive speed? If
you conclude from these data that they have, what explanation might
you get from the bus drivers?

17 32 21 22
29 19 29 34
33 22 28 33
52 29 43 39
44 34 30 41

17. Here are the ages in years of the cars worked on by the Village
Autohaus last week

5 6 3 6 11 7 9 10 2 4 10 6 2
1 5

a. Compute the mode for this data set

b. Compute the mean of the data set.

18. The ages of a sample of the students attending Sandhills

Community College this semester are

19 17 15 20 23 41 33 21 18 20

18 33 32 29 24 19 18 20 17 22

55 19 22 25 28 30 44 19 20 39

a. Construct a frequency distribution with intervals 15-19, 20-24, 25-29,

30-34 and 35 and older

b. Estimate mode of the raw data.

c. Estimate mode from frequency distribution

19. Ed Grant is the director of Student Financial Aid Office at Wilderness

College. He has used available data on the summer earnings of all
students who have applied to his office for financial aid to develop the
following frequency distribution:

Class Frequency
0-499 231
500-999 304
1000-1499 400
1500-1999 296
2000-2499 123
2500-2999 68
3000 or 23
more
a. Find the modal class
b. Find the mode of the frequency distribution

20. 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

21. For the sample that follows, compute the

(a) Range

(b) Interquartile range

2549 3897 3661 2697 2200 3812 2228 3891 2668 2268

3692 2145 2653 3249 2841 3469 3268 2598 3842 3362

22. Talent Ltd. A Hollywood casing company, is selecting a group of

extras for a movie. The age of the first 20 men to be interviewed are

50 56 55 49 52 57 56 57 56 59
54 55 61 60 51 59 62 52 54 49

The director of the movie wants men whose ages are fairly tightly
grouped around 55 years. Being a statistics buff of sorts, the director
suggests that a standard deviation of 3 years would be acceptable.
Does this group of extras qualify?

23. The head chef of The Flying Taco has just received two dozen
tomatoes from her supplier, but she isn’t ready to accept them. She
knows from invoice that the average weight of a tomato is 7.5 ounces,
but she insist that all be of uniform weight. She will accept them only if
the average weight is 7.5 ounces and the standard deviation is less than
0.5 ounce. Here are the weights of the tomatos:

6.3 7.2 7.3 8.1 7.8 6.8 7.5 7.8 7.2 7.5 8.1 8.2

8.0 7.4 7.6 7.7 7.6 7.4 7.5 8.4 7.4 7.6 6.2 7.4

What is the chef’s decision and why?

35. Director of a business school is interested to know whether there is

any relationship between students’ entrance score and their
performance in final examination. Prepare a scatter diagram using excel
and draw a fit line. Estimate the fitted line by calculating a and b if
the equation is in y=a+bx . Find out the error term.

Student A B C D E F G H
Entrance 74 69 85 63 82 60 79 91
examination
score
Grade point 2.6 2.2 3.4 2.3 3.1 2.1 3.2 3.8
average
36. An instructor is interested in finding out how the number of
students absent on a given day is related to the mean temperature of
that day. A random sample of 10 days was used for the study. The
following data indicate the number of students absent (ABS) and mean
temperature of each day.

ABS 8 7 5 4 2 3 5 6 8 9
TEMP 10 20 25 30 40 45 50 55 59 60

a. State the dependent variable Y and independent variable X.

b. Draw a scatter diagram of these data.
c. Does the relationship between the variable appear to be liner or
curvilinear?
d. What type of curve could you draw through the data?
e. What is the logical explanation for he observed relationship?

37. A professor is trying to show his students the importance of quizzes

even though 90 percent 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 below:

Quiz 59 92 72 90 95 87 89 77 76 65 97 42 94 62 91
average
Final 65 84 77 80 77 81 80 84 80 69 83 40 78 65 90
average
a. State the dependent variable (Y) and the independent variable
(X).
b. Draw a scatter diagram of these data.
c. Does the relationship between the variables appear to be liner or
 curvilinear?
d. Does the professor’s belief to be justified? Explain your reasoning.

39. Cost accountant often estimate overhead based on the level of

production. At the standard knitting co. they have collected information
on overhead expenses and unit produced at different plants, and want
to estimate a regression equation to predict future overhead.
Overhead 191 120 272 155 280 173 234 116 153 178
Units 40 42 53 35 56 39 48 30 37 40
a. Develop the regression equation for the cost accountants
b. Predict overhead when 50 units are produced
c. Calculate the standard error of estimate.
d. Find out the coefficient of determination and coefficient of
correlation.
40. 15 candidates were appeared in an interview. Two interviewers
gave the following ranks to the candidates. Find the rank correlation
between them.
Candidates Rank given by one interviewer Rank given by other
interviewer
1 1 2
2 3 3
3 2 1
4 4 5
5 6 4
6 5 6
7 7 8
8 9 7
9 8 9
10 11 10
11 10 12
12 12 11
13 14 13
14 13 14
15 15 15

41. A selection board consisting of two experts for the post of general
manager in a company interviewed 10 candidates whom the two
experts assigned ranks as in column 1 and 2. Find the rank correlation
between them.
Candidates Rank given by one interviewer Rank given by other
interviewer
1 7 8
2 9 10
3 2 4
4 4 6
5 5 4
6 5 4
7 8 7
8 10 9
9 3 1
10 1 2

51. Construct price index number from the following data by applying
1. Laspeyere’s Method
2. Paasche’s Method
3. Fisher’s ideal Method
4. Bowley’s Method
Commodity 2000 2001
Price Quantity Price Quantity
A 2 8 4 5
B 5 12 6 10
C 4 15 5 12
D 2 18 4 20

53. From the following data compute quantity indices by (i) Laspeyre’ s
method, (ii) Paasche’ s method and (iii) Fisher’ s method.
Commodity 2000 2001
Price Quantity Price Quantity
A 10 100 12 180
B 12 240 15 450
C 15 225 17 340

44. Production of a company for the following years have been given
below.

Years Production
in thousand
1991 10
1992 21
1993 23
1994 24
1995 25
1996 22
1997 12
1998 16
1999 18
2000 17
2001 16
2002 15
2003 14
2004 22
2005 23
2006 21
 a. Calculate a 4 year centered moving average.
b. Calculate a 4 quarter centered moving average
c. Find the percentage of actual to moving average for each period

d. Explain the various sub-components of Time series in brief. Which

component is averaged using moving average method majorly?
1. From the following data of the wage of seven workers, compute the
median wage:

Wages (in Rs)

4100 4150 6080 7120 5200 6160 7400

2. Obtain the value of the median from the following data of the monthly
income of ten employees of a company in Rupees:
4,391 5,384 5,591 5,407 6,672
6,522 6,777 6,753 7,850 5,490
3. From the following data, find the value of median:

Income (Rs) 4,000 4,500 5,800 5,060 6,600 5,380

Number of 24 26 16 20 6 30
Persons

4. Calculate the median of the following frequency distribution:

Marks Number of Students

45-50 10
40-45 15
35-40 26
30-35 30
25-30 42
20-25 31
15-20 24
10-15 15
5-10 7
5. Calculate mode for the following distribution:

Size of 5 6 7 8 9 10 11
Shoes
Number 10 20 25 40 22 15 6
of
Purchases

6. Calculate the mode from the following data of the marks obtained by ten
students:

Sl. No. Marks Obtained

1 10
2 27
3 24
4 12
5 27
6 27
7 20
8 18
9 15
10 30

7. What will be the mode in the following case?

Size of 28 29 30 31 32 33
garments
No. Of 10 20 40 65 50 15
persons
wearing

8. Determine the mode for the following data:

Marks Number of students

Above 0 80
Above 10 77
Above 20 72
 Above 30 65
Above 40 55
Above 50 43
Above 60 28
Above 70 16
Above 80 10
Above 90 8
Above 100 0

9. Calculate Spearman’s Rank Correlation Coefficient for the following data of

marks of students in Maths and English:

Englis 56 75 45 71 62 64 58 80 76 61
h
Maths 66 70 40 60 65 56 59 77 67 63

10. Determine Rank Correlation Coefficient for the following data:

X 48 33 40 9 16 16 65 24 16 57
Y 13 13 24 6 15 4 20 9 6 19

11. Calculate the rank correlation coefficient for the following data:

X 50 70 50 60 80 50 90 50 60 60
Y 25 60 45 50 45 20 55 30 45 30

12.From the following data obtain the rank correlation coefficient of the marks
in mathematics (x) and in statistics (y):

x 74 40 80 38 82 68
y 85 40 73 61 89 80

13. Calculate the correlation coefficient between the following pairs of values:

X 100 110 115 116 120 125 130 135

Y 18 18 17 16 16 15 13 10
14. Calculate the three yearly moving average of the production figures given
below:

Year Production (in Year Production (in

metric tons) metric tons)
1989 15 1997 63
1990 21 1998 70
1991 30 1999 74
1992 36 2000 82
1993 42 2001 90
1994 46 2002 95
1995 50 2003 102
1996 56

15.Construct the five yearly moving average of the students studying in a

college shown below:

Year Number of Year Number of

Students Students
1994 332 1999 405
1995 317 2000 410
1996 357 2001 427
1997 392 2002 405
1998 402 2003 438

16. Estimate the trend values using the data given by taking a four yearly
moving average:

Year Value Year Value

1990 12 1997 100
1991 25 1998 82
1992 39 1999 65
1993 54 2000 49
 1994 70 2001 34
1995 87 2002 20
1996 105 2003 7

17. Assume a four yearly cycle and calculate the trend by the method of
moving averages from the following data relating to the production of tea
in India:

Year Production (m. Year Production (m.

Ibs.) Ibs.)
1994 464 1999 540
1995 515 2000 557
1996 518 2001 571
1997 467 2002 586
1998 502 2003 612

18. Calculate the weighted arithmetic mean for the following data:
X : 1500 800 500 250 100
W : 10 20 70 100 150
19. Find the median and mode for the following data:
% marks : 10-19 20-29 30-39 40-49 50-59 60-69 70-79
Students : 8 19 29 36 25 13 4

20. Calculate the mean and standard deviation of the following frequency
distribution of marks:

Marks Number of Students

0 - 10 5
10 - 20 12
20 - 30 30
30 - 40 45
40 - 50 50
50 - 60 37
60 - 70 21

21.Two brands of tyres are tested with the following results:

 Life in ‘000 miles Number of Tyres of Brand
X Y
20 - 25 1 0
25 - 30 22 24
30 - 35 64 76
35 - 40 10 0
40 - 45 3 0

(a) Which of the tyres has greater average life?

(b) Compare the variability and state which brand of tyres would you prefer on
your fleet of trucks.

1. Union shop steward B. Lou Khollar has drafted a set of wage and benefit demands to be
presented to the management. To get an idea of the worker support for the package, he
randomly polls the two largest groups of workers at his plant – the machinists (M) and
the inspectors (I). He polls 30 of each group with the following results:

Opinion of Package M I
Strongly support 9 10
Mildly support 11 3
Undecided 2 2
Mildly opposed 4 8
Strongly opposed 4 7
30 30

(a) What is the probability that a machinist randomly selected from the polled group
mildly supports the package?
(b) What is the probability that an inspector randomly selected from the polled group is
undecided about the package?
(c) What is the probability that a worker (machinist or inspector) randomly selected
from the polled group strongly or mildly supports the package?
(d) What types of probability estimates are these?

2. Classify the following probability estimates as to their type (classical, relative frequency,
or subjective):
(a) The probability of scoring on a penalty shot in ice hockey is 0.47.
(b) The probability that the current mayor will resign is 0.85.
 (c) The probability of rolling two sixes with two dice is 1/36.
(d) The probability that a president elected in a year ending in zero will die in office is
7/10.
(e) The probability that you will go to Europe this year is 0.14.

3. Determine the probabilities of the following events in drawing a card from a standard
pack of 52 cards:
(a) A seven.
(b) A black card.
(c) An ace or a king.
(d) A black two or a black three.
(e) A red face card (king, queen or jack).

What type of probability estimates are these?

4. There are three children in a family. What is the probability that they include (i) exactly
two girls (ii) not more than one girl.
5. An urn contains 75 marbles
6. : 35 are blue, and 25 of these blue marbles are swirled. The rest of them are red, and 30
of the red ones are swirled. The marbles that are not swirled are clear. What is the
probability of drawing:
(a) A blue marble from the urn?
(b) A clear marble from the urn?
(c) A blue, swirled marble?
(d) A red, clear marble?
(e) A swirled marble?

7. The HAL Corporation wishes to improve the resistance of its personal computer to disk-
drive and keyboard failures. At present, the design of the computer is such that disk-
drive failures occur only one-third as often as keyboard failures. The probability of
simultaneous disk-drive and keyboard failures is 0.05.
(a) If the computer is 80 percent resistant to disk-drive and keyboard failure, how low
must the disk-drive failure probability be?
(b) If the keyboard is improved so that it fails only twice as often as the disk-drive (and
the simultaneous failure probability is still 0.05), will the disk-drive failure probability
from part (a) yield a resistance to disk-drive and/or keyboard failure higher or lower
than 90 percent?
8. In a random sample of 1,000 persons from town A, 400 are found to be consumers of wheat. In
a sample of 800 from town B, 400 are found to be consumers of wheat. Do these data reveal a
 significant difference between town A and town B, so far as the proportion of wheat consumers
is concerned?

9. In a simple random sample of 600 men taken from a big city, 400 are found to be smokers. In
another simple random sample of 900 men taken from another city, 450 are smokers. Do the
data indicate that there is significant difference in the habit of smoking in the two cities?

10. The mean height obtained from a random sample of size 100 is 64 inches. The standard
deviation of the distribution of height of the population is known to be 3 inches. Test the
statement that the mean height of the population is 67 inches at 5% level of significance. Also
set up 99% limits of the mean height of the population.

11. A sample of 100 tyres is taken from a lot. The mean life of tyres is found to be 39,350 kms. with
a standard deviation of 3,260. Could the sample come from a population with a mean life of
40,000 kms? Establish 99% confidence limits within which the mean life of tyres is expected to
lie.

12.An intelligence test on two groups of boys and girls gave the following results:

Mean S.D. N
Girls 75 15 150
Boys 70 20 250

Is there a significant difference in the mean scores obtained by boys and girls?

13. A man buys 50 electric bulbs of Philips and 50 bulbs of Surya. He finds that the Philips bulbs give
an average life of 1,500 hours with standard deviation of 60 hours, while for the Surya bulbs the
corresponding values are 1,512 hours and 80 hours, respectively. Is there a significant difference
in the mean life of the two makes of bulbs?

14. The manufacturer of a certain make of electric bulbs claims that his bulbs have a mean life of 25
months with a standard deviation of 5 months. A random sample of six such bulbs gave the
following values:
Life in months 24, 26, 30, 20, 20, 18.
Can you regard the producer’s claim to be valid at 1% level of significance? (Given that the table
values of the appropriate test statistic at the said level are 4.032, 3.707 and 3.499 for 5, 6 and 7
degrees of freedom, respectively.)

15. The life time of electric bulbs for a random sample of ten from a large consignment gave the
following data:
Item : 1 2 3 4 5 6 7 8 9 10
 Life (‘000 hrs) : 4.2 4.6 3.9 4.1 5.2 3.8 3.9 4.3 4.4 5.6
Can we accept the hypothesis that the average life time of the bulbs is 4,000 hours?

16. Two types of drugs were used on five and seven patients respectively for reducing their weight.
Drug A was imported while drug B is indigenous. The decrease in the weight after using the
drugs for six months was as follows:
Drug A : 10 12 13 11 14
Drug B : 8 9 12 14 15 10 9
Is there a significant difference in the efficacy of the two drugs? If not, which drug should you
buy? (For ν = 10, t0.05 = 2.228)

17. From a random sample of 10 persons, fed on a diet A, the increased weights in pounds in a
certain period were:

10, 6, 16, 17, 13, 12, 8, 14, 15, 9

For another random sample of 12 persons, fed on diet B, the increases in the same were:

7, 13, 22, 15, 12, 14, 18, 8, 21, 23, 10, 17

Test whether the diets A and B differ significantly as regards their effect on increase in weight.

Given the following:

Degrees of freedom : 19 20 21 22 23

Value of t0.05 : 2.09 2.09 2.08 2.07 2.07

18. To verify whether a course in accounting improved performance, a similar test was given to 12
participants both before and after the course. The original marks – given in alphabetic order of
the participants – were 44, 40, 61, 52, 32, 44, 70, 41, 67,72, 53, and 72. After the course, the
marks were in the same order - 53, 38, 69, 57, 46, 39, 73, 48, 73, 74, 60 and 78. Was the course
useful?

19. A drug is given to 10 patients, and the increments in their blood pressure were recorded to be 3,
6, -2, 4, -3, 4, 6, 0, 0, 2. Is it reasonable to believe that the drug has no effect on change of blood
pressure? (5% value of t for 9 d.f. = 2.26).

20. In an anti-malarial campaign in a certain area, quinine was administered to 812 persons out of a
total population of 3,248. The number of fever cases are shown below:

Treatment Fever No Fever Total

 Quinine 20 792 812
No Quinine 220 2216 2436
Total 240 3008 3248

Discuss the usefulness of quinine in checking malaria

For ν =1 χ2 = 3.84.

21. Based on information on 1,000 randomly selected fields about the tenancy status of the
cultivation of these fields and the use of fertilizers collected in an agro-economic survey, the
following classification was noted:

Owned Rented Total

Using fertilisers 416 184 600
Not using fertilisers 64 336 400
Total 480 520 1000
Would you conclude that the owner cultivators are more inclined towards the use of fertilisers at 5%
level?