Quotation of index numbers of ordinary share prices of a joint venture

bank and price of preference share are as follows:

Year
1
2
3
4
5
6
7
Ordinary
100.5 102.6 100 95.5
99.6
105.1 101.9
Share price
Preference
97.8
96.5
100 101.2 106.8 99.9
98.5
Share price
Find the rank correlation coefficient and make the interpretation. [ans: 0.71]
The advertising expenses and the sales of a new product are recorded as
below:
Adv. exp. (Rs. 000)
1
5
6
8
10
Sales (Rs. 000)
50
60
80
100
110
Estimate the sales when the advertising expenses is Rs. 15,000. [Ans:
144.57]
You are given the following information about advertising and sales:
Advertising expenditure(in
Rs. lakh)
10
3

Sales(in Rs. lakh)

Mean
90
12
Standard
Deviation
The coefficient of correlation between advertising and sales is equal to
0.8. Estimate likely sales when the advertisement expenditure is Rs. 15
lakh. [Ans: Rs. 106 lakhs]
From the following data measure the relationship between age and mark?
Test whether the relationship is significant or not and formulate the
equation that explains best the relationship between age and mark and

estimate mark for age 18. [Ans: r = -0.837, significant, y = 101.734

4.375x, 23]
Marks
18
3

05
5 10
10 15
15 20
20 25

19
5
2

Age in Years
20
7
4
-

21
3
3
10
-

In an aptitude test, two judges rank the 10 competitors in the following

order:

22
1
2
-

Find the rank correlation coefficient: [ans: 0.952]

X
Y

54
31

57
36

61
50

64
60

64
83

72
93

72
90

79
85

86
99

89
122

A study was conducted to find whether there is any relationship between

the weight and blood pressure of an individual. The following set of data
was arrived at from a clinical study. Let us determine the coefficient of
correlation for this set of data. [Ans: 0.5966]
Weight
78
86
72
82
80
86
84
89
68
71
Blood
140 160 134 144 180 176 174 178 128 132
Pressure
A computer while calculating the correlation coefficient between two
variables X and Y from 8 pairs of observations obtained the following
results.
N = 8, X = 562, X2 = 39602, Y = 561, Y2 = 39815 and XY = 39441.
It is however, later discovered at the time checking that the computer has
copied down two pairs as (X = 76, Y = 56 and X = 76 , Y = 86) instead of (X =
67, Y = 65 and X = 67 , Y = 68). Calculate the correct value of the
correlation coefficient and regression line of Y on X. Estimate Y when X =
65. [ans: r = 0.60, y = 0.667x + 23.644, 67]

Individual 1
2
3
4
5
6
7
8
9
Rank by I 6
4
3
2
1
7
9
8
10
Rank by II 4
1
6
7
5
8
10
9
3
Is there any concordance between the two judges? [Ans: 0.25]

10
5
2

Given the following data calculate the mark in mathematics obtained by a

First Judges
1
6
5
10
Second Judges 3
5
8
4
Third Judges
6
4
9
8
student who has 60 marks in English:

3
7
1

2
10
2

4
2
3

9
1
10

7
6
5

8
9
7

Mean mark in Math = 80

Mean mark in English = 50
Standard deviation in Math = 15
Standard deviation in English = 10
Correlation coefficient between math and English = - 0.4 [Ans: 74]

Find the most likely price in market A corresponding to the price of Rs. 75
at market B from the following information:
Average price in market A = Rs. 67
Average price in market B = Rs. 65
Coefficient of variance at market A = 5.22
Coefficient of variance at market B = 3.85
Coefficient of correlation between prices of commodities in market A and
B = 0.82 [Ans: 78.48]
Year
Motor Registration in (000 nos)
No. of tyres sold (000 nos.)

1
60
125

2
63
110

3
72
130

4
75
135

5
80
150

From the following table, compute the coefficient of correlation and

estimate the expenditure of person when his income is Rs. 4000.
Expenditure
Income(in Rs.)
(in Rs.)
0 500
500
1000
1500
2000 1000
1500
2000
2500
0 400
12
6
8
-

400 - 800
2
18
800 - 1200
8
1200 1600
1
1600 - 2000
Total
14
33
[Ans: r = 0.572, y = Rs. 2184.44]

4
10
10
1
33

5
2
2
2
11

You are given two regression equation 4X 5Y + 33 = 0 and 20X 9Y 107

= 0. Find:
a. Mean of X and Y
b. Two regression coefficients
c. Coefficient of correlation between x and y. [Ans: 13, 17, 4/5,
9/20, 0.6]

1
4
1
3
9

The coefficient of rank correlation of marks obtained by 10 students in

Englsih and economics was found to be 0.5. It was later discovered that
the difference in ranks in two subjects obtained by one of the students
was wrongly taken as 3 instead of 7, Find the correct rank correlation
coefficient. [Ans: 0.258]
Ten competitors in a voice test are ranked by three judges in the following
orders:
Use the method of rank correlation to guage which pair of judges have the
nearest approach to common linkings in voice. [Ans: first and 3rd]
Find the r between age and playing habit. [Ans: - 0.991]
Age group
No. Of students
No. of regular players

15 16
250
200

16 17
200
150

17 18
150
90

18 19
120
48

19 20
100
30

20 21
80
12

The following table shows the number of motor registration and the sale
of Gorkha Motor Tyres by a whole sale dealer in Kathmandu for the term
of 5 years.
i.
Estimate the sale of tyres when expectd motor registration in
next year is 90,000.
ii.
Also Claculate correlation coefficient and interpret. [ans:
159852, r = 0.85]
Following informations given below are relate with the ages of husband
(x) and wife (y) for married couples living together in a sample survey.
Calculate the coefficient of correlation between age of husband and that
of his wife; test the significance of calculated r.
N = f = 72, fx = 3560, fx2 = 196800, fy = 3260, fy2 = 168400 and fxy
= 172000
[Ans: r = 0.52, significant]

If the sum of the squares of the difference between two ranks is 288 and
the number of pairs of observation (n) is 7, find the coefficient of of Rank
correlation. Also give your opinion whether there is any agreement
between orders of two ranks. [Ans: - 4.14, no aggrements]
Find the maximal and minimal value of z = 2x + 3y subject to the following
constraints:
Solution:
Here we have,
Maximize z = 3x + 4y and constraints are:
x + 2y 10(i)
2x + y 14..(ii)
x 0, y
now,
From inequality (i)
Corresponding equation of this inequality is x + 2y = 10.
When, x = 0; y = 5
when, y = 0; x = 10
Therefore, it passes through (0, 5) and (10, 0).
Put x = 0 and y = 0 in given inequality x + 2y 10, we get,
0 + 0 10
0 10 (true)
Hence the line convex to the origin.
From inequality (ii)
Corresponding equation of this inequality is 2x + y =14.
When, x = 0; y = 14
when, y = 0; x = 7
Therefore, it passes through (0, 14) and (7, 0).
Put x = 0 and y = 0 in given inequality 2x + y 14, we get,
0 + 0 14
0 14 (true)

Hence the line convex to the origin.

The shaded portion OPQR is the feasible region. The nonThe co-ordinates of point Q is obtained on solving the two equations (i)
and (ii):
2x + 4y = 20
2x + y = 14
3y = 6
y = 2 and x = 6
The co-ordinate of point Q is (6, 2).
Analysis table
Verex
Co-ordinates(x, y)
O
(0, 0)
P
(7, 0)
Q
(6, 2)
R
(0, 5)
The maximum profit is Rs. 18 at (6, 2).

Max. z = 2x + 3y
Z=0+0=0
Z = 2 7 + 3 0 = 14
Z = 2 6 + 3 2 = 18 (max.)
Z = 2 0 + 3 5 = 15