Gujarat Technological University

Seat No.: ________ Enrolment No.
___________
GUJARAT TECHNOLOGICAL UNIVERSITY

MBA SEMESTER I– • EXAMINATION – SUMMER-2019
Subject Code: 3519207 Date: 22/05/2019

Subject Name: Business Statistics
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Use of statistical table is allowed.
2. Figures to the right indicate full marks.
Q–1 Briefly discuss the following concepts: 14
a) Index numbers
b) Autocorrelation
c) Cumulative frequency
d) Characteristics of normal distribution
e) Coefficient of determination
f) Posterior probability
g) Explain Chebyshev’s theorem
Q – 2 (A) There are two clubs in a society. In this, 60% members of the society are members of 7
club A and 29% members of the society are member of club B. Whereas 13%
members of the society are member of both clubs. Suppose one member is selected
randomly,
1) What is the probability that he is a member of club A or club B?
2) What is the probability that he is neither member of club A nor club B?
3) What is the probability that he is not a member of club A but member of club B?
Q – 2 (B) In MBA semester I, unit test of 100 marks was administered for 100 students. The 7
result is as under:
Marks Number of Students
Below 10 4
Below 20 6
Below 30 24
Below 40 46
Below 50 67
Below 60 86
Below 70 96
Below 80 99
Below 90 100
Based on this information, develop the frequency distribution table and calculate
mean, median and mode of the data.
OR
Q – 2 (B) Discuss nominal, ordinal, interval and ration data types with examples. 7
Q – 3 (A) Workers in the manufacturing sector are subject to work related injuries. The 7
Government labour department estimates that the average cost of these injuries to
1
employers and insurers is approximately Rs. 30000 per injured worker. Suppose these
costs are normally distributed with a standard deviation of Rs. 9000/-.
1) What proportions of the costs are between Rs. 15000 to Rs. 45000?
2) What proportions of the costs are greater than Rs. 50000?
3) What proportions of the costs are between Rs. 5000 and Rs. 20000?
4) Suppose the standard deviation is unknown, but 90.82%of the costs are more
than Rs. 7000, what would be the value of standard deviation?
Q – 3 (B) A survey showed that the average number of annual trips per family in Gujarat is 7
Poisson distributed, with a mean of 0.7 trips per year. A family is selected randomly.
What is the probability that
1) The family didn’t make a trip last year?
2) The family took two or more trips last year?
3) The family took tree or fewer trips over five-year period?
4) The family took exactly 4 trips during a six-year period?
OR
Q – 3 (A) Briefly discuss Binomial distribution and Poisson distribution. What are the 7
conditions in which Poisson distribution is used as an approximation of Binomial
distribution?.
Q – 3 (B) Mr. Patel, a farmer has collected the following information describing the prices and 7
quantities of three harvested crops for the year 2011 – 2014:
Price (in Rs. Per ton) Quantity Harvested (tons)

Type of 2011 2012 2013 2014 2011 2012 2013 2014
Crop ↓
X 108 109 113 111 1280 1150 1330 1360
Y 93 96 96 101 830 860 850 890
Z 97 99 106 107 1640 1760 1630 1660
Construct a Laspeyres price index for each of these four years using 2011 as the base
year.
Q – 4 (A) Depict your understanding for Time-Series Analysis. Also discuss the components of 7
Time-Series.
Q – 4 (B) Generally, accountants estimate overhead based on the level of production. At 7

Shriram co., they have collected information on overhead expenses and units
produced at different plants as under:
Overhead 191 170 272 155 280 173 234 116 153 178
Units 40 42 53 35 56 39 48 30 37 40
1) Develop the regression equation for accountants.
2) Predict overhead when 50 units are produced.
3) Calculate the standard error of estimate.
OR
Q – 4 (A) Explain simple and multiple regression with suitable examples. 7
Q – 4 (B) Depict your understanding for correlation and types of correlation. What is the use of 7
Coefficient of correlation in statistics?
2
Q–5 A manufacturing company has installed a machine costing Rs. 4 lacs and is in the 14
process of deciding on an appropriate number of certain spare parts required for
repairs. The spare parts cost Rs. 4000 per unit but are available only if they are
ordered now. In case the machine fails and no spares are available, the cost to the
company of mending the plant would be Rs. 18000/-. The plant has an estimated life
of 8 years and the probability distribution of failure during this time, based on
experience with similar machines, is as under:
No. of failures during 0 1 2 3 4 5 6+
8-yearly period
Probability 0.1 0.2 0.3 0.2 0.1 0.1 00
Ignoring any discounting for time value of money, determine the following:
a) The optimal number of units of the spare part on the basis of minimax
principle, minimin principle, Laplace principle, and Hurwicz Principle (by
Taking α =0.7).
b) The expected number of failures in the 8-year period.
OR
a) The optimal choice on the basis of least expected regret criterion using the
regret table.
b) Expected Value of Perfect Information.
*****

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Seat No.: ________ Enrolment No.

GUJARAT TECHNOLOGICAL UNIVERSITY

Subject Code: 3519207 Date: 22/05/2019

Q–1 Briefly discuss the following concepts: 14

Price (in Rs. Per ton) Quantity Harvested (tons)

Q – 4 (B) Generally, accountants estimate overhead based on the level of production. At 7

Q – 4 (A) Explain simple and multiple regression with suitable examples. 7

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