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QAM 601 (Sample Question paper)

STATISTICS FOR MANAGEMENT

Mapped Subjects: QAM 601

[Max Marks: 70]

Note: Attempt Questions from all sections as directed.

Section A - Attempt any Two questions out of Four. Each question carries 7.50 marks. [15marks]

Question No: 1

Business statistics is Science or Arts, justify the statement.

ANSWER:-

Business statistics defies a simple "science or art" classification. It's a hybrid discipline exhibiting
characteristics of both:

Science:
Rigorous methods: Employs well-established statistical techniques for data collection, analysis, and
interpretation based on proven theoretical principles.

Quantifiable data: Relies on objective and measurable data, minimizing ambiguity and enhancing
the reliability of insights.

Empirical testing: Hypotheses are tested using statistical tools, leading to evidence-based
conclusions instead of guesswork.

Generalizable principles: Statistical laws and methods hold true across diverse business contexts,
enabling broader application and comparison.

Art:
Contextual interpretation: Selecting appropriate tests, framing questions based on business goals,
and interpreting results accurately require domain knowledge and understanding of the specific
context.

Creativity and judgment: Effective application involves creative problem-solving, critical thinking to
identify limitations and assumptions, and judgment in choosing the most relevant results.

Communication and storytelling: Presenting data findings clearly and compellingly for diverse
audiences demands strong communication skills and the ability to translate data into actionable
insights.
Experience and intuition: Seasoned statisticians develop an intuition for data patterns and potential
pitfalls, guiding the selection of methods and analysis approaches.

Therefore, business statistics is neither purely science nor solely art. It's a powerful combination of
both, where scientific methods provide the analytical foundation, while human expertise and artistry
add the contextual interpretation and communication skills needed to make data truly impactful for
business decision

Question No: 2

From the following table provides data on marks obtained by 50 students in a class for the

subject of statistics

Marks 10-20 20-30 30-40 40-50 50-60 60-70

Frequency 2 8 7 10 8 6

Draw a histogram and write your observations.

ANSWER:-

Marks Frequency Percentage

(10, 20] 2 4.88%

(20, 30] 8 19.51%

(30,40) 7 17.07%

(40,50) 10 24.39%

(50,60) 8 19.51%

(60,70) 6 14.63%
 12

10

6 Frequency
Percentage
4

0
(10, 20] (20, 30] (30,40) (40,50) (50,60) (60,70)

Question No: 3

In the examination of Business Statistics, the marks of 50 students of BBA are given below:

Marks 0 – 10 10 - 20 20 – 30 30 – 40 40 – 50 50 – 60 60 - 70

No. Of Students 4 7 9 14 7 4 5

Find standard deviation for the marks of students.

ANSWER:-

Marks | Midpoint (x) | Frequency (f) | x*f | x^2*f

-----------------------------------------------------
0 - 10 | 5 | 4 | 20 | 100
10 - 20 | 15 | 7 |105 |1575
20 - 30 | 25 | 9 |225 |5625
30 - 40 | 35 | 14 |490 |17150
40 - 50 | 45 | 7 |315 |14175
50 - 60 | 55 | 4 |220 |12100
60 - 70 | 65 | 5 |325 |21125
-----------------------------------------------------
Σ | 52 |1680 |73450

Mean (μ) = Σ(x*f) / N = 73450 / 52 = 1412.5

Mean (μ) = Σ(x*f) / N = 73450 / 52 = 1412.5

Now, calculate the variance:

Variance (σ^2) = [Σ(x^2*f) / N] - μ^2

= [1680 / 52] - (1412.5)^2

= 32.3077

Finally, calculate the standard deviation:

Standard Deviation (σ) = √Variance

= √32.3077

≈ 5.69 (rounded to two decimal places)

So, the standard deviation for the marks of the students is

approximately 5.69.

Question No: 4

A bag contains 5 red, 6 blue and 7 black cards. If one card is drawn at random, find the probability

that it is black.
ANSWER:-

To find the probability of drawing a black card, you can use the following formula:

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑎𝑣𝑜𝑟𝑎𝑏𝑙𝑒 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠

P(Black)=
𝑻𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒑𝒐𝒔𝒔𝒊𝒃𝒍𝒆 𝒐𝒖𝒕𝒄𝒐𝒎𝒆𝒔

In this case, the number of favorable outcomes is the number of black cards, which is
7, and the total number of possible outcomes is the total number of cards in the bag,
which is the sum of red, blue, and black cards (5 + 6 + 7 = 18).

P(Black)= 7
18

7
So, the probability of drawing a black card is18

Section B - Compulsory Questions. Each question carries 7.50 marks. [15

Marks]
The blood groups of 200 people are distributed as follows: 50 have type A blood, 65 have B blood

type, 70 have O blood type and 15 have type AB blood. A person from this group is selected at
random.

Question No: 1

What is the probability that this person has O blood type?

ANSWER:-

To find the probability that a randomly selected person has blood

type O, you can use the formula for probability:
𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒑𝒆𝒐𝒑𝒍𝒆 𝒘𝒊𝒕𝒉 𝒃𝒍𝒐𝒐𝒅 𝒕𝒚𝒑𝒆 𝑶
P(O)= 𝐓𝐨𝐭𝐚𝐥 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐩𝐞𝐨𝐩𝐥𝐞

In this case, the number of people with blood type O is 70, and the total number of people is
200.

70
P(O)=
200
Simplify the fraction if possible:
7
P(O)=
20
𝟕
So, the probability that a randomly selected person has blood type O is𝟐𝟎

Question No: 2

What is the probability that this person has AB blood type?

ANSWER:-

To find the probability that a randomly selected person has AB blood type, you can
use the same formula for probability:

𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇𝒑𝒆𝒐𝒑𝒍𝒆 𝒘𝒊𝒕𝒉 𝒕𝒚𝒑𝒆 𝑨𝑩

P(AB)= 𝐓𝐨𝐭𝐚𝐥 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐩𝐞𝐨𝐩𝐥𝐞

In this case, the number of people with blood type AB is 15, and the total number of
people is 200.

15
P(AB)=
200

Simplify the fraction if possible:

3
P(AB)=
40

𝟑
So, the probability that a randomly selected person has blood type AB is
𝟒𝟎
Section C - Compulsory Questions. Each question carries 2.00 marks. [40
Marks]

Question 1

If the assumed hypothesis is tested for rejection considering it to be true is called?

Option 1

Null hypothesis

Option 2

Statistical hypothesis

Option 3

Simple hypothesis

Option 4

Composite Hypothesis
Question No.2

A statement whose validity is tested on the basis of a sample is called

Option 1

Null hypothesis

Option 2

Statistical hypothesis

Option 3

Simple hypothesis

Option 4

Composite hypothesis

Question No.3

If the null hypothesis is false, then which of the following is accepted?

Option 1

Null hypothesis

Option 2

Statistical hypothesis

Option 3

Simple hypothesis

Option 4

Alternative hypothesis

Question No.4

The point where the Null Hypothesis gets rejected is called as?

Option 1

Significant value

Option 2

Rejection value

Option 3

Acceptance value
Option 4

Critical value

Question No.5

From a pack of 52 cards, two cards are drawn together at random. Estimate the probability
of

both cards being king?

Option 1

3/1326,

Option 2

8/52,

Option 3

8/51,

Option 4

None of these

Question No.6

A (blind folded) marksman find that on the average he hits the target 4 times out of 5. If he
fires

4 shots, Estimate the probability of more than two hits?

Option 1

3/20,

Option 2

7/20,

Option 3

17/32

Option 4

None of these

Question No.7

The probability that a contractor will get a plumbing contract is 2/3 and the probability
that he
will not get an electric contract is 5/9. If the probability of getting at least one contract is
4/5.

Determine the probability that he will get both?

Option 1

10/27,

Option 2

15/18

Option 3

13/35

Option 4

None of these

Question No.8

Bag “I” contains 4 white and 6 black balls while another Bag II contains 4 white and 3 black

balls. One ball is drawn at random from one of the bags and it is found to be black. Find the

probability that it was drawn from Bag I.

Option 1

2/3,

Option 2

5/7,

Option 3

7/12,

Option 4

1/5,

Question No.9

A man is known to speak truth 2 out of 3 times. He throws a die and reports that number

obtained is a four. Find the probability that the number obtained is a four.

Option 1

2/7,
Option 2

3/7,

Option 3

5/7,

Option 4

4/7,

Question No.10

A biased dice is thrown 30 times and the number of six seen is eight. If the die is thrown a

further twelve times find the probability that a six occur exactly twice?

Option 1

0.345

Option 2

0.211

Option 3

0.762

Option 4

0.98

Question No.11

Tickets numbered 1 to 20 are mixed up and then a ticket is drawn at random. Find the
probability

that the ticket drawn has a number which is a multiple of 3 or 5?

Option 1

1/2,

Option 2

2/5,

Option 3

8/15,

Option 4
9/20,

Question No.12

A bag contains 2 red 3 green and 2 blue balls. Two balls are drawn at random. Find the

probability that none of the ball drawn is blue?

Option 1

10/21,

Option 2

11/21,

Option 3

2/7,

Option 4

5/7,

Question No.13

In a box, there are 8 red 7 blue and 6 green balls. One ball is picked up randomly. Find the

probability that it is neither red nor green?

Option 1

1/3,

Option 2

3/4,

Option 3

7/19,

Option 4

None of the mentioned

Question No.14

If the value of r is 0 then its shows

Option 1

Perfect positive correlation

Option 2
Perfect negative correlation

Option 3

No correlation

Option 4

Moderate negative correlation

Question No.15

Relationship between more than three variables is called

Option 1

Simple correlation

Option 2

Multiple correlation

Option 3

No correlation

Option 4

None of these

Question No.16

Coefficient of rank correlation represented by

Option 1

Me

Option 2

Mo

Option 3

Option 4

All of these

Question No.17

Coefficient of correlation of quantitative data is determined by

Option 1
Scatter diagram method

Option 2

Karl Pearson method

Option 3

Rank correlation method

Option 4

A and B only

Question No.18

If the value of r is exactly 0.4 then its shows

Option 1

Perfect positive correlation

Option 2

Perfect negative correlation

Option 3

Moderate negative correlation

Option 4

Moderate positive

Question No.19

Term statistics originated from the word

Option 1

Statista

Option 2

Status

Option 3

Statistique

0ption 4O

All of these

Question No.20
The study of relation of more than two variable is called

Option 1

Regression

Option 2

Multiple correlation

Option 3

Sampling

Option 4
None of these