Paper: Business Statistics

General Instructions:
The Student should submit this assignment in the handwritten form (not in the typed format) The Student should submit this assignment within the time specified by the exam dept The student should only use the Rule sheet papers for answering the questions. The student should attach this assignment paper with the answered papers.

Code: 451A

Failure to comply with the above Four instructions would lead to rejection of assignment.

Specific Instructions:
There are four Questions in this assignment. The student should answer all the four questions. Marks allotted 100. Each Question carries equal marks (25 marks) unless specified explicitly

Question 1 a) A statistical analysis of 1000 long distance telephone calls made from the headquaters of the Bricks and Clicks Computer Corportaion indicates that the length of these calls is normally distributed with mean = 240 seconds and standard deviation = 40 seconds i) what percentage of these calls lasted less than 180 seconds. ii)what percentage of calls lasted between 180 and 320 seconds iv) between which to durations (of a call ) centered around mean are their 95% of a calls lie. Further given that Z= P(z) = 1 0.3413 1.5 0.4332 1.96 0.4750 2 0.4772 2.33 0.4901 3 0.4987

b) A credit insurance organization has developed a new high-tech method of training new sale personnel. The company sampled 16 employees who were trained the original way and found average daily sales to be $688 and the sample standard deviation was $ 32.63. They also sampled 11 employees who were trained using the new method and found average daily sales to be $ 706 and the sample standard deviation was $ 24.84. At = 0.05, can the company conclude that average daily sales have increased under the new plan. ( t =1.708 at 0.05 significance level and 25 degrees of freedom) ii) A bank officer wants to determine the amount of the average total monthly deposits per customer at the bank. He believes an estimate of this average amount using a confidence interval is sufficient. How large a sample should he take to be within $ 200 of the actual average with 99% confidence? He assumes the standard deviation of total monthly deposits for all customers is about $1000. (at z=2.57 probability is 0.495) (8.3*3)

Question 2

a) Maxwells Hot chocolate is concerned about the effect of the recent year long coffee advertising campaign on hot chocolate sales. The average weekly hot chocolate sales two years ago was 984.7 pounds and the standard deviation was 72.6 pounds. Maxwells has randomly selected 30 weeks from the past year and found average sales of 912.1 pounds. State the appropriate hypothesis for testing whether hot chocolate sales have decreased. At the 2% significance level, test this hypotheses. (at z=2.05 probability is 0.48) b) A Ketchup manufacturer is in the process of deciding whether to produce a new extra-spicy brand. The companys marketing research department used a national telephone survey of 6000 households and found that the extra-spicy ketchup would be purchased by 335 of them. A much more extensive study made 2 years ago showed that 5% of the households would purchase the brand then. At a 2% significance level, should the company conclude that there is an increased interest in the extra-spicy flavour? (at z=2.05 probability is 0.48) c)A random sample of 15 items is taken, producing a sample mean of 2.346 with a sample variance of 0.81. Construct a 90% confidence interval of the mean. ( t = 1.76 at 14 degree of freedom and 0.05 significance level) Question 3

. An advertising firm is trying to determine the demographics for a new product. They have randomly selected 75 people in each of 5 different age groups and introduced the product to them. The result of the survey are given below:
Purchase Frequently Seldom Purchase Never Purchase Total 18-29 12 18 45 75 30-39 18 25 32 75 Age Group 40-49 50-59 17 22 29 24 29 29 75 75 60-69 32 30 13 75 Total 101 126 148 375

Calculate Chi square value and test your hypotheses at the 0.01 significance level, what is your conclusion ( chi square value is 20.0902 at 0.01 significance level and 8 degrees of freedom) ( 25 Marks) Question 4

Section A Case Study :- Spending and Student Achievement Is the educational achievement level of students related to how much the state in which they reside spends on education? In many communities taxpayers are asking this important question as school districts request tax revenue increases for education. In this case, you will be asked to analyze data on spending and achievement scores in order to determine whether there is any relationship between spending and student achievement in the public schools.

Future Activity

The federal governments National Assessment of Eductaional Progress(NAEP) program is frequently used to measure the educational achievement of students. The table below shows the total current spending per pupil per year, and the composite NAEP test score for 10 states that participated in the NAEP program. The composite test score is the sum of math, science, and reading scores on the 1996 NAEP test. Pupils tested are in grade 8, except for reading which is given to fourth graders only. The maximum possible score is 100. States 1 2 3 4 5 6 7 8 9 10 a) b) c) d) e) UP Punjab Himachal Haryana J&K Rajasthan MP Bihar Maharashtra Karnataka Spending Per Pupil Composite Test Per Day (Rs.) ( X) Score (Y) 45 30 90 60 105 65 90 80 55 55

40 35 75 65 90 50 90 80 45 45

Explain Correlation and Regression. (4 Marks) Develop the two regression equations Y(Composite Test Score) on X (Spending Per Pupil Per Day) and X (Spending Per Pupil Per Day) on Y(Composite Test Score) (6+6 Marks) Calculate the correlation coefficient (4 Marks) Calculate coefficient of determination and explain what does it mean. ( 2 Marks) Forecast the value of Composite Test Score if the Spending Per Pupil Per Day is 85 ( 3 Mark)