QMM

S.I& C.
I
1. A man borrows Rs.1600 for three years at 12% p.a. interest. Calculate how much he has
to repay.
2. In what time will Rs.2800 yield an interest of Rs.392 at 4% p.a. SI
3. Which principal will amount to Rs.2250 in 3(1/3) years at 2(1/7)% interest?
4. A sum of money lent out at SI amounts to Rs.2990 in 2 years and to Rs.3282.50 in 3½
years. Find the sum of money and the rate of interest.
5. A man borrowed a sum of Rs1500 and agrees to repay the dept by 5 equal annual
payments with 6% interest compounded annually. If the 1 st payment is to be made at the
end of the 1st yr how much should each payment be?
6. Find the compound Interest on Rs.5000 at 6% p.a. for 3 years.
7. A machine is purchased for Rs.15000. If the depreciation is 6% p.a. for the first 6 years
and 7% p.a. for the next 6 years, what is the value of the machine?
8. Find the period in which an amount gets trebled at 8% p.a. compound interest.
9. If 2000 amounts to Rs.2205 in 2years at CI. Find the rate of interest per annum.
10. A machine costs Rs.72,500. Find its value at the end of 5years, if the rate of depreciation
is 20% p.a.
Annuities
1. An insurance company allows interest at 8% per annum compounded annually. What
initial payment will enable a person to purchase a perpetuity of Rs1000p.a
2. What should be the periodic payment of an annuity which is to accumulate to Rs1000 in
10 payments if the interest is 5% compounded annually
3. A firm advertises a color T.V for Rs8000 cash down or installments of Rs1600p.a for
10yrs, the 1st being payment on the day of transaction. If the rate of interest be 20%p.a
compounded annually which is better offer
4. A person inherits a sum of Rs25000 wishes to have a steady annual income for the next
10yrs. He approaches a company for the issue of an annuity for 10yrs. If the company
allows 10% rate interest compounded annually what is the annual payment that he will
receive
5. A person borrowed a sum of Rs3500 on the condition to repay in 23 monthly installments
of Rs150 & the last installment of Rs50. Calculate S.I at the rate of 5% p.a which he has
to pay as the 25th installment.
6. How much should be invested every month in an account paying an interest of 5% p.a
compounded continuously so as to accumulate Rs.15000 in 6 years
7. A man purchased a home under the Gujarat housing board scheme for Rs85000. He paid
Rs20000 as down payment & paid the remainder in 120 equal monthly installments.
What was his installment amount? Assume money is worth 12% per annum compounded
monthly
8. A building is purchased for Rs60000. One third of the price is paid on completion of the
purchase and the balance is payable by four equal annual installments including principal
and interest at 5% per annum. Calculate the amount of annual payment
9. A loan of Rs25000 is repaid by means of 43 equal installments including principal and
interest calculate the amount of installment if the amount worth 5% C.I per annum
10. A person invests Rs2000 every year with a company which pays interest at 10% per
annum. He allows his deposit to accumulate at CI. Find the amount to the credit of the
person at the end of 5th year
11. Sri. Anil bought a house paying Rs20000 down and Rs4000 at the end of each year for 25
years. What ought he to have paid for the house if he has bought it cash down to reckon
interest at 5% p.a compound interest.
12. Find the least number of years for which an annuity of Rs 250 must run in order that the
amount list exceeds Rs.4000 at 5% compounded annually
13. A person purchases a house of worth Rs.98,000 on installments basis such that Rs.50,000
is to be paid in cash on the signing of the contract and the balance in 20 equal
installments which are to be paid if interest be reckoned 16% p.a compounded annually
14. The accumulation in a provident fund is invested at the end of every year to earn 10%
p.a. A person contributed 12.5% of his salary to which the employer adds 10% every
month. Find how much the accumulations will amount to at the end of 30 years of his
service, for every 100 rupees of his monthly salary.
15. Find an amount of an annuity of Rs2000 per annum for 10 years reckoning compound
interest at 10% per annum.
16. A man wishes to have Rs2500 available in a bank account when his daughter’s first year
college expenses begin. How much must he deposit in the beginning of each year at 3.5%
compounded annually, if the girl is to start in college six years from now
17. Find the sum of money require to buy a leasehold estate for 20 years yielding a return of
Rs1200 per annum if the compound interest rate is 6% per annum
18. A man plans to build up Rs24000 to buy a new machine. He wishes to make 8 equal
annual deposits to an account paying 5% compounded annually, the first deposit to be
made at the end of the year. How much each deposit to be?
19. A firm advertises a color TV for Rs8000 cash down or installments of Rs1600 per annum
for ten years the 1st being payment on the day of transaction. If the rate of interest be 20%
per annum compounded annually which is better offer.
20. According to the will of a man his life insurance of Rs40000 should be deposited soon
after his death. The bank has to pay Rs5000 annually to his heir and if the CI rate is 5%
how many annual payments could be made
21. A man buys an old piano for Rs.500 agreeing to pay Rs.100 down and the balance in
equal monthly installments of RS.20 with interest at 6%. How long will it take him to
complete the payment?
22. Mr. Selva invests Rs.2000 every year with a company which pays interest at 10% p.a. He
allows his deposit to accumulate at C.I. Fid the amount to the credit of the person at the
end of 5th year.
23. A person deposits to pay back his deposit of Rs.3152.50 due after 3 years by three equal
annual installments. Find the amount of each installment, money being worth 5% p.a.
compound interest
24. A company borrows Rs.10000 on condition to repay it with compound interest at 5% p.a.
by annual installments of Rs.1000 each. In how many years will the dept be paid off?
25. Mr.S abari purchased a motor car for Rs.2,50,000 under a hire purchase scheme. He paid
30% as down payment at the time of taking delivery of the car and agreed to pay the
balance in 10 equal annual installments, together with compound interest at 9% p.a.
Calculate the amount of each installment.
Differentiation & Integration
1. Find the marginal cost and average cost for the following cost function at x = 4
C(x) = 6000- 100x2-x3
2. The demand for a certain product is represented by the equation p= 20 +5q-q 2 where q is
the number of units demanded and p is the price per unit. Find the MR function. What is
the MR at q=2
3. The demand function P = 100-2q, find the MR function. What is the relationship between
the slopes of AR and MR curves? At what price MR is zero
4. If the demand function faced by a firm is P = 12000-4x and total cost is x 2+100x+2000
find Marginal cost, Marginal revenue, Marginal profit
5. The total cost of producing x units is C= 0.00004x3- 0.002x2+3x+10000
a. Find the Marginal cost of 1000 units of output
b. Find the Average cost
c. Find the value of x for which Marginal Cost is equal to Average variable cost
6. A TV manufacturer’s total cost function is given by C(x) = 250x2 -4000x+6000 where x
is the number of TV sets produced. Find the MC function. Also find the MC when x = 10
7. The TC of making x units is C Rs where C = 25+3x+2√x. What is the MC at 100 units of
output
8. Find the average and marginal cost for the total cost function of a firm is given by TC=
0.04q3 – 0.9q2 +10q +20 and draw the Break even chart.
9. The TC C of making x units is given by C = 5000+10x +(2x 2/1000) & TR is 25x find
profit function, MC & AC function
10. With ‘X’ representing the level of output, and given the following information on a firm’s
cost, Marginal cost = 100 + x+0.3x² and Total cost = 4000 when x=20. Find the firm’s
total cost function.
11. The TC C(x) associated with producing and marketing x units of an item is given by C(x)
= 0.005x3- 0.02 x2- 30x+3000. Find
a. TC when output is 4 units
b. Average cost of output of 10 units
c. Mc when the output is 3 units
12. Find the marginal cost and average cost for the following cost function at x = 4
C(x) = 6000- 100x2-x3
13. If the demand function faced by a firm is P = 12000-4x and total cost is x 2+100x+2000
find Marginal cost, Marginal revenue and Marginal profit
14. The demand curve of a monopolist is given by p=(50-x)/5. Find the MR for any output x.
What is MR when x=0 and x=25
15. The management of a company finds that fixed costs for producing an item is Rs5000 &
variable cost/unit of output is Rs2
a. Find the TC function
b. If the Unit demand function q=-1000p+10000, where p is the price & q is the
quantity, find the TC function in terms of the price
c. Find the sales revenue & profit functions
16. A firm has the following TC & demand function C =1/3Q3– 7Q2 +111Q+50 &
Q = 100-p where C- TC,O- output, p- price Find the maximum profit
17. The cost function of a firm is given by f(x) = 9+5x-50x2+5x3/6 where x is the output.
Find the quantum of output which will minimize the MC
18. The demand function p = 100-2q. Find MR function. What is the relationship between the
slopes of the Average & Marginal revenue curves? At what price is MR zero
19. A manufacturer can sell x items per month at a price of P=300-2xRs producing x items
costs the manufacturer y Rs where y = 2x+100. How much production will yield
maximum profits
20. A manager of a printing firm plans to include 200sq.cm of actual printed matter on each
page of a book under production. Each page should have a 2.5cm margin along the top &
bottom &2.0cm wide margin along the sides. What are the most economical dimensions
of each page
21. An advertisement is to contain 75sq.cms of printed area. There is a 2cm margin at the
bottom, 3cm margin in each side. No margin at the top. Find the dimensions of the
smallest possible poster?
22. The total profit y in Rs of a drug company manufacture & sale of x drug bottles is given
by y = ( x2/400)+ 2x – 80 . How many drug bottles must the company sell to achieve the
maximum profit
23. Suppose a manufacturer can sell x items per week at a price p=20-0.001x rupees each
when it costs y = 5x+2000 rupees to produce x items. Determine the number of items he
should produce per week for maximum profit
24. The cost of fuel in running of locomotive is proportional to the square of the speed and is
Rs48/hr for a speed of 16Kms/hr. Other expenses amount to Rs300/hr. What is the most
economical speed?
25. If the TR & TC function of a firm are given by R = 30x- x 2 & TC = 20+4x where x is the
output, find the equilibrium level of output of the firm. What is the maximum profit
26. The Total cost function of a firm is given by C = (4/100)q3 – (9/10)q2 +10q+10
i. Find the value of q at which the Average Variable cost function is
minimum
ii. Find the cost at minimum average cost
27. A certain product is used at the rate of 6 units per month. The cost of setting up the
machines is Rsd48 & the charge for holding stock of the product is Rs9/unit/month. What
is the EOQ and the minimum cost associated with it.
28. A company is ready to produce refrigerators. The cost of setting up production line is
Rs60000. The additional cost of producing a refrigerator is Rs2500. The company
expects the revenue from the sales of the refrigerator to be Rs5200/refrigerator. Assume
that all the produced units are sold find
a. The number of units to be produced for making profit
b. The number of units of production which results in a loss
c. The profit of producing 200units
d. The BEP quantity
29. The production function of a commodity is given by T=40F + 3F2 – (/3F3) where T is the
total output and F is the number of units of input
i. Find the number of units of input required to give maximum output
ii. Verify that when the average production is maximum it is equal to maximum
production.
30. Given TC function of a production process is C = 1440+125x –0.1x 2. Find the optimum
output that minimizes the TC
31. a) Find the value of x of the following function which minimizes f(x) = 45x2-20x+63
b) Find the minimum value of y = 5x2+10x+2
32. The TC & demand function for a product of a firm are given by C = x 2+2x+1 p = 10- 2x
find the optimal production level that maximizes the profit and maximum profit
33. A company has examined its cost structure & revenue structure & has determined that C,
the TC, R the TR & x the number of units produced are related as C = 100+0.015x 2 & R
= 3x, Find the production rate that will maximize the profit of the company
34. A telephone company has a profit of Rs2 per telephone when the number of telephones in
the exchange is not over 10000. The profit per telephone decreases by 0.01 paisa for each
telephone over 10000. What is the largest possible profit
35. Suppose the demand function for a product is q=2000-8p and the cost function is C =
10000+60q. q is the quantity and p is the price.
a. Find the price at which the sales revenue is maximum.
b. Find the price at which the profit is maximum
36. State whether Y = X²-6X+13 has maximum or minimum value. Find the value
37. A company has examined its cost structure and revenue structure and has determined that
C the total cost ‘R’ the total revenue and ‘X’ the number of units produced are related as ;
C = 100+0.015X² and R=3X. Find the production rate ‘X’ that will maximize profit of the
company. Find the profit and the profit when X=120.
38. The cost ‘C’ of manufacturing a certain article is given by the formula C=5+48/X+3X²,
where X is the number of articles manufactured. Find the minimum value of C.
39. A firm finds that it can sell all that it produces. The demand function is p = 250-3x where
p is the price per unit at which it can sell x units. The cost function is C= 500+20x where
x is the number of units produced. Find x so that the profit is maximum
40. If C(x) = 4x+9 and R(x) = 9x-x2 Find
a. The break even point
b. Find revenue at the most profitable output
41. Find Variable cost at the most profitable output
42. Find the value of profit maximizing output and value of maximum profit
(1) x =75-3P and C=100+3X
(2) TC=4X+9 and TR=9X-X²
43. A firm produces x units of output/week at a TC of Rsx 2/3 -x2 +5x,find the level at which
the MC & AVC attain their minimum
44. A firm produces x tones of output at a total cost c(x) = (1/10)x3 +4x2+20x+5 find
a. Average variable cost
b. Marginal cost
c. Marginal average variable cost at the output level 10 tones
45. Suppose the demand function for a product is q = 2000-8p and the cost function is
C=10000+60q, q is the quantity and p is the price
a. Find the price at which the profit is maximum
46. Find the price at which the sales revenue is maximum
47. The cost function of a food manufacturer is given by C=1000+100x-10x 2+x3. Show that
Marginal cost = Minimum Average variable cost
48. a) Daily cost of production of x chair is given by f(x) = 2x 3-24x2+96x+22 & the revenue
is R=166x – 8x2-42. Find the output for which the profit is maximum
b) When the TC function is given by f(x) =205x +550. Find the point where the AC is
minimum
49. A firm finds that it can sell all that it produces. The demand function p=260-3x where p is
the price/unit at which it can sell x units. The cost function C = 500+20x where x is the
number of units produced. Find x so that the profit is maximum
50. Verify the statement that in general slope of AC curve = 1/x(MC-AC) where x is the
output for the cost curve C = 10 +x +2x2
51. If the MR of a firm is MR = 9-4x2, find the TR & AR
52. The demand function for a commodity is p = 20-3q & the supply function of the market
is p=2q find consumer’s surplus
53. If the supply curve is p = √9+x and quantity sold in market is 7 find producer’s surplus
54. The MC of producing a product is given by MC = 10+0.02x. The MR function = 20-
0.002x. Fixed cost is Rs150, find the TC & TR functions
55. The MC in lacks of rupees is given by MC = 4+5x 2+(3/2)e-x where x is the quantity
produced. Find the total cost of production when x = 2 and fixed cost is Rs 6lacs
56. A firm purchases new machinery for 144000Rs. The new machinery brings about
½
reduction in cost at a rate given by ds/dt = 8000 t where s denotes savings in cost of
production due to the new machinery to pay for itself
57. Determine the cost of 3000 pens if MC is C’(x) = x/3000 + 2.5x
58. A business organization made an analysis of production which shows that the present
equipment and workers the production is 10000 units per day. it is estimated that the rate
of change of production P with respect to the change in the number of additional workers
x is dp/dx = 200- 3x1/2 What is the production with 25 additional workers
59. The marginal cost and marginal revenue of a firm is given as C’(x) = 4+0.08x and R’(x)
= 12. Find the total profits given that the total cost at zero output is zero
60. The MC function for some product is 1+2x+ 6x2 where x is the output. Find the total
profits given that the TC is 10 when the output is zero
61. A firm has the marginal revenue given by MR= a/(x+b)²-C, where ‘x’ is the output and a,
b and c are constants. Show that the demand function is given by X=[a/b(p+c)]-b
62. The marginal cost C(x) and the marginal revenue R(x) are given by C(x)=20+(x/20). The
fixed cost is 200. Determine the maximum profit and the number of items
produced for this profit
63. A firm’s total variable cost (VC) are given by VC=X³-90X²+4000X. What is the level of
total variable costs when average variable costs are at a minimum?
64. If MR = 100+50x – 7x2 where x is the output and if revenue is Rs200 at one unit
production then find the revenue and demand at x =10 units
65. If the MR of a firm is MR = 9-4x2, find the TR, AR and the maximum revenue.
66. A firm purchases new machinery for 144000Rs. The new machinery brings about
reduction in cost at a rate given by ds/dt = 8000t ½; where s denotes savings in cost of
production due to the new machine. Calculate the time required for the new machinery to
pay for itself.
Mean, Median & mode
1. Find the mean, median and mode of the following data:
(i) 84, 91, 72, 68, 87, 84
(ii) 65, 61, 72, 81, 51, 31
(iii) 38, 31, 22, 20, 31, 61, 15, 20
(iv) 15, 11, 18, 23, 11, 19, 11
(v) 7, 12, 18, 14, 19, 20
(vi) 26, 25, 29, 23, 25, 29, 30, 25, 28, 30.
2. Find the mean, median and mode of the following data:
i) X: 5 10 15 20 25 30
F: 4 5 7 4 3 2
ii) Marks: 24 20 35 52 50 48
No of students:4 7 3 9 5 12
iii) X: 10 20 30 40 50 60
f: 8 15 12 10 9 6
3. The MP of the share of Appollo food products limited during the 1 st two weeks of 1986
are given below
Week 1 35.5 34 33 32.5 35 38
Week 2 42 43 38 36 37 35
a) Calculate the average MP during the 1st week and 2nd weeks
b) Calculate the average MP during the 2nd weeks
4. The data on the age of a recently admitted bath of 150 MBA students are given below
Age: 19 20 21 22 23 24 25 26 27 28
No: 20 30 35 25 20 10 5 2 2 1
Admitted
5. Find mean, median & mode
C-I : 21-26 27-32 33-38 39-44 45-50 51-56
Frequency: 2 6 7 5 3 2
6. In a class of 50 students, 10 have failed and their average of marks is 2.5. The
7. Calculate AM from the following
Marks: 80 70 60 50 40 30 20 10
No of Students: 100 90 80 60 32 20 13 5
8. There were 500 workers working in a factory. Their mean was calculated as Rs200. Later
on it was discovered that the wages of two workers were misread as 180 & 20 in place of
80 & 220. Find the correct average
9. Three teachers conducted a test in statistics in their classes. The average marks obtained
in their classes were 65, 59 and 76. There were 30, 42 and 28 students respectively in
their classes. What were the average marks for all the classes
10. A time & motion study of a certain operation in an engineering firm shows the following
distribution for 200 workers. Calculate the mean length of time required to complete the
operation
C I: 5-12 13-20 21-27 28-34 35-42
Freq: 10 36 62 72 20
11. Calculate A.M from the following data
C- I: 10-19 20-29 30-39 39-40 50-59 60-69 70-79 80-89
Freq: 2 4 9 11 12 6 4 2
Height: 62-63 63-64 64-65 65-66 66-67 67-68 68-69
No of
Persons: 2 6 14 16 8 3 1
Marks: less than 50 <45 <40 <35 <30 <25 <20 <15
No of students: 97 95 90 80 60 30 12 4
14. Calculate AM, Median and Mode
Temperature: -40 to -30 -30to -20 -20to -10 -10to0 0 to 10 10to20 20t030
No of days: 10 28 30 40 65 180 10
C-I: 10-20 10-30 10-40 10-50 10-60 10-70 10-80 10-90
F: 4 16 56 97 124 137 146 150
16. The mean salary paid to 1000 employees of an establishment was found to be Rs180.40.
Later on after disbursement of salary it was discovered that the salary of 2 employees was
wrongly entered as RS297, 165. Their correct salaries were Rs197 &185. Find correct
AM
17. Calculate AM by shortcut method
X: 462 480 498 516 534 552 570 588 606 624
F: 98 75 56 42 30 21 15 11 6 2
18. Calculate mode for the following data
CI : 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50
F: 2 8 12 18 24 14 10 6 4 2
19. The mean of the following distribution is 67.5 inches. Find the missing frequency.
Height in inches: 60-62 63-65 66-68 69-71 72-74
Frequency: 15 54 ? 81 24
20. Calculate the mean, median and mode for the following data
Class 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100
Frequency 3 7 13 17 12 10 8 8 6 6
21. From the following table find mean and Standard deviation
Yield in lbs No of plots
Over 0 216
Over 60 210
Over 120 156
Over 180 98
Over 240 57
Over 300 31
Over 360 13
Over 420 7
Over 480 2
22. Calculate mean and standard deviation for the following distribution
CI 2.5- 7.5- 12.5- 17.5- 22.5- 27.5- 32.5- 37.5- 42.5- 47.5- 52.5- 57.5-
7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5 52.5 57.5 62.5
f 12 28 65 121 175 198 176 120 66 27 9 3
23. Calculate median and mode for the following data
No of rejects per
Operator: 21-25 26-30 31-35 36-40 41-45 46-50 51-55
No of operators: 5 15 28 42 5 12 3
24. In an Examination of 675 candidates the examiner supplied the following information
calculate the mean, median and mode
Marks Obtained No of Candidates
Less than 10% 7
Less than 20% 39
Less than 30% 95
Less than 40% 201
Less than 50% 381
Less than 60% 545
Less than 70% 631
Less than 80% 675
25. Obtain the mean, median & mode of the following
Marks: 10-25 25-40 40-55 55-70 70-85 85-100
Freq: 6 20 44 26 3 1
26. For a distribution of 250 heights, calculations showed that the mean and standard
deviation were 54 inches and 3 inches respectively. It was however discovered on
checking that the two items 64 and 50 in the original data were wrong written in place of
correct values 62 and 52 inches respectively. Calculate the correct frequency constant.
27. Make a frequency table having grades of wages with class interval of two rupees from the
following data of daily wages received by 20 laborers in a certain factory and find the
mean and median
14 16 16 14 22 13 15 24 12 18
18 20 20 17 14 13 11 21 21 12
28. Calculate the mean, median and the mode from the following data.
Weight 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89
( in grams)
No of Apples 14 42 24 54 21 18 17 15
29. Estimate the mean, median and the mode from the following data. The following list
gives the marks of students scored out of 200.
Marks 10- 30- 50- 70- 90- 110- 130- 150- 170-
30 50 70 90 110 130 150 170 190
No of 3 2 4 5 6 10 9 8 7
Students
30. From the following find the median number of minutes spent by a group of teenagers
going to movies.
Minutes/week: 0-99 100-199 200-299 300-399 400-499 500-599 600 & more
No of teenagers: 27 32 65 78 58 38 9
31. Calculate mean median and mode
Marks: less than 5 <10 <15 <20 <25 <30 <35 <40 <45
No of students: 29 224 465 582 634 644 650 653 655
32. Calculate mean median and mode
Marks: More than 0 >20 >40 >60 >80 >100 >120
No of students: 80 76 50 28 18 9 3
33. Calculate AM and median & mode from the following data
C: 130-134 135-139 140-144 145-149 150-154 155-159 160-164
F: 5 15 28 24 17 10 1
34. The mean height of 25 male workers in a factory is 61 inches and the mean height of 35
female workers in the same factory is 58 inches. Find the combined mean height of 60
workers in the factory
35. Calculate median from the following
61 62 62 63 61 64 64 60 65 63 64 65
66 64
33 20 35 50 37 33 35 25 35 34 35
Income: 100-200 100-300 100-400 100-500 100-600
Frequency: 15 33 63 83 100
Monthly Wages: 20-40 40-60 60-80 80-90 100-110 120-130 130-140 140-150
No of workers: 8 12 20 30 40 35 18 7 5
39. A test was held to decide about of a scholarship. Different weights were assigned to
various subjects. Marks obtained by three candidates are as follows
Subject Weight A B C
Statistics 4 63 60 65
Mathematics 3 65 64 70
Hindi 2 8 56 63
Economics 1 70 80 52
If the candidates securing the highest aggregate marks is awarded the scholarship sate
who gets it
40. Calculate weighted AM from the following data
Design Monthly Salary (in Rs) Strength of the code
Class I officers 1500 10
Class II officers 800 20
Subordinate Staff 500 70
Clerical Staff 250 100
Lower Staff 100 150
41. total marks secured by the entire class were 281. Find the average marks those who have
passed.
42. Mean of 20 values is 45. If one of these values is to be taken 64 instead of 46. Find the
correct mean
HM, GM, WM
1. Cities A, B & C are equidistant from each other. A motorist travels from A to B at
30Km/Hr; from B to C at 40Km/Hr & from C to A at 50Km/Hr. Determine his average
speed for the entire trip
2. In a factory there are 100 skilled, 250 semi skilled and 150 unskilled workers. It has been
observed that on an average a unit length of a particular fabric is woven by a skilled
worker in 2hrs, by a semi skilled worker in 3hrs & by a unskilled worker in 4hrs. After a
training of 2 yrs the semi skilled workers are expected to become skilled and unskilled
workers to become semi skilled. How much less time will be required after 2yrs of
training for weaving the unit length of fabric by an average worker
3. An aero plane flies around a square the sides of which measure 100m each. The aero
plane covers at a speed of 100Kms/Hr the 1 st side, 200Kms/Hr the 2nd side, at 300Kms/Hr
the 3rd side & 400Km/Hr the 4th side. Use correct mean to find the average speed around
the square
4. Compared to the previous year the overhead expenses went up by 32% in 1961 &
increased by 44% in the next year &50% in the following year. Calculate the average rate
of increase in overhead expenses over the 3yrs
5. In a certain factory a unit of work is completed by A, B, C, D, E in 4hours, 5hours,
6hours and 10 hours respectively. What is the average number of units of work completed
per hour? At this rate how many units will be completed in a week assuming 8 hour per
day
6. The rate of certain commodity in the 1st week of January 1987 is 0.4Kg per rupee. It is
0.6Kg per rupee in 2nd week and 0.5Kg per rupee in 3rd week. Find the average price.
(Ans 0.486)
7. A vehicle when climbing up a gradient, consumes petrol at 8Km/litre while coming down
it runs 12Km/litre. Find its average consumption for to and from travel between two
paces situated at the 2nds of 25Km long gradient
8. A man travels from A to B at an average speed of 30Km/hr & returns from B to A along
the same route. Find his average speed
9. A collar manufauturer is considering the producton of a new style of collare to attract
young men. The following statistics of circumferences of the collars are available based
on the measurement of a typical group.
Mid values: 12 12.5 13 13.5 14
(in inches)
No of students:4 8 13 20 25
Use the criterion x ± 3σ to obtain the largest, smallest collar size he could make.
SD & CV
1. From the following information comment about the consistency of A & B
A B
Mean 10.5 21.6
S.D 3.5 6.5
2. Suppose that samples of polythene bags from 2 manufacturers A & B are tested by a
prospective buyer for bursting pressure with the following results. Which set of bags
has the highest average bursting pressure? If the prices are same which
manufacturer’s bags would be preferred by the buyer? Why?
Bursting Pressure (lbs) No of bags
A B
5.0- 9.9 2 9
10.0-14.9 9 11
15.0-19.9 29 18
20.0-24.9 54 32
25.0-29.9 11 27
30.0-34.9 5 13
3. Find the S.D of the weight of billet in 8gms as given in the following table
Class boundary
(Wt in Gms) Frequency
210-215 8
215-220 13
220-225 16
225-230 29
230-235 14
235-240 10
240-245 7
245-250 3
4. A study of 100 taxi drivers yielded the following distribution of Kilometers driven per
month
Kms/ month Frequency
Under3000 5
3000-3999 12
4000-4999 18
5000-5999 38
6000-6999 15
7000-7999 9
8000-8999 3
Do these drivers show greater stability in their mileage than in their driving
experience if they would have driven an average of 12 years with a S.D of 3 years
5. Find the missing information from the following table
Group
A B C Combined
Number: 50 - 90 200
S.D: 6 7 - 7.746
Mean: 113 - 115 116.
6. A purchasing agent obtained samples of lamps from two suppliers. He had the
samples tested in his own laboratory for length of life with the following results. Find
which company’s lamps should be preferred by the buyer & why
Length of life Samples from
Company A Company B
1700 and under 1900 10 3
1900 and under 2100 16 40
2100 and under 2300 26 12
2300 and under 2500 8 3
2500 and under 2700 6 2
7. The score of two golfers A and B in 10 rounds are given below. Determine which of
them is more consistent.
A 55 54 52 53 56 58 52 50 51 49
B 108 107 105 105 106 107 104 103 104 101
8. Find the standard deviation of the following distribution.
Age 20-25 25-30 30-35 35-40 40-45 45-50
No of Persons 170 110 80 45 40 35
9. The following table shows that monthly expenditure of 80 students of a university on
morning breakfast. Calculate Arithmetic mean, standard deviation and coefficient of
variation of the below data.
Expenditure 78- 73- 68- 63- 58- 53- 48- 43- 38- 33-
82 77 72 67 62 57 52 47 42 37
No of 2 6 7 12 18 13 9 7 4 2
Students
10. Goals scored by two teams in a football session were as follows:
No of Scored in a No of Football matches played
Football match Team A Team B
0 15 20
1 10 10
2 7 5
3 5 4
4 3 2
5 2 1
Total 42 42
Calculate the coefficient of variation and state which team is more consistent.
11. Find the missing information from the following table
Group
A B C Combined
Number 50 - 90 200
SD 6 7 - 7.746
Mean 113 - 115 116
12. You are given the distribution of wages in two factories x and y
Wages (in Rs): 50-100 100-150 150-200 200-250 250-300 300-350
No of workers x: 2 9 29 54 11 5
No of workers y: 6 11 18 32 27 11
State in which factory the wages are more variable
13. The following Table gives the marks obtained by a group of 80 students in an
examination. Calculate SD
Marks: 0-14 14-18 18-22 22-26 26-30 30-34 34-38 38-42 42-46 46-50 50-54 54-58
No of students:2 4 4 8 12 16 10 8 4 6 2 4
14. Particulars regarding the income of 2 villagers are given below
Village X Village Y
No of People 600 500
Average Income 175 186
Variance 100 81
i) In which village is the variation in income is greater
ii) What is the combined SD of the village X & village Y put together
15. A factory produces two types of electric lamps. A and B in an experiment relating to
their life the following results were obtained
Length of line: 500-700 700-900 900-1100 1100-1300 1300-1500
No of Lamps A: 5 11 26 10 8
B: 4 30 12 8 6
16. The mean and standard deviation of a sample size 10 were found to be 9.5 and 2.5.
Later on an additional observation becomes available. This was 15 and was included
in the original sample. Find the mean and standard deviation of the 11 observations
17. Calculate the coefficient of variation for the following data
Weight: 13.5-140.5 140.5-150.5 150.5-160.5 160.5-170.5 170.5-180.5 180.5-190.5
No of : 10 20 30 20 10 10
Correlation
1. Find Karl Pearson coefficient of correlation and interpret its value for the following data
Age: 20 30 32 35 40 46 52 55 58 62
Sick day: 1 2 0 3 4 6 5 7 8 9
2. Find Spearman’s correlation coefficient
Marks by judge 1: 86 58 64 74 48 70 94
Marks by judge 2: 90 45 72 64 59 60 80
3. Calculate coefficient of correlation between age and sum assured from the data given
below and comment on the value
Sum assured (Rs)
Age 5000 10000 15000 20000
20-30 2 3 4 6
30-40 - 2 3 5
40-50 - 2 2 3
50-60 5 8 3 2
4. Obtain Karl Pearson correlation coefficient between X & Y
X: 23 29 33 35 39 34 38
Y: 15 18 21 17 25 26 28
5. Calculate coefficient of correlation between price and sales from the following data
Price(Rs): 100 90 85 92 90 84 88 90
Sales: 500 610 700 630 670 800 800 750
6. Obtain the correlation coefficient between the heights of fathers(X) and of the sons(Y)
from the following data
X: 65 66 67 68 69 70 71 67
Y: 67 68 64 72 70 67 70 68
7. A survey regarding the incomes and savings of 100 school teachers in a certain city
provides the following data
Savings
Income in Rs 50 100 150 200
400 8 4 - -
600 - 12 24 6
800 - 9 7 2
1000 - - 10 5
1200 - - 9 4
Calculate Karl Pearson correlation coefficient.
8. Following data relates to production and export (in million tons) of certain material.
Calculate the coefficient of correlation and comment on the result.
Production 55 56 58 59 60 60 62
Export 35 38 38 39 44 43 44
9. Calculate Rank correlation between the heights of father and son of the following table.
(Heights in inches)
Height of Father 65 63 67 64 68 62 70 66 68 67 69 71
Height of Son 68 66 68 65 69 66 68 65 71 67 68 70
10. The coefficient of rank correlation of marks obtained by 10 students in English and
economics was found to be 5. It was later discovered that the difference in ranks in the
two subjects obtained by one of the students was wrongly taken as 3 instead of 7. Find
the correct coefficient of rank correlation.
11. Calculate Karl Pearson’s coefficient of correlation and its probable error between
ages 100 mothers and daughters.
Age of Mothers Age of Daughters
5-10 10-15 15-20 20-25 25-30

6 3 - - -
15-25 3 16 10 - -
25-35 - 10 15 7 -
35-45 - - 7 10 4
45-55 - - - 4 5
55-65
12. Calculate Spearman’s correlation coefficient from the following data relating to overhead
expenses and cost of production
Over heads in (crores) 80 90 100 110 120 130 140 150 160
Cost in (crores) 15 15 16 19 17 18 16 18 19
13. Calculate Karl Pearson’s coefficient of correlation for the following data of prices and
demand (43, 105), (54, 98), (85, 53), (91,49),(59, 84) (95, 40), (68, 73), (29, 59), (73, 63),
(72, 52)
14. Calculate Spearman’s correlation coefficient correlation from the following data
Supply: 120 110 120 119 140 125 127 119 140 160
Demand: 240 250 260 266 232 245 255 267 268 239
15. Calculate Pearson’s coefficient of correlation from the following data using 44 and 26
respectively as the origin of X and Y
X: 43 44 46 40 44 42 45 42 38 40 42 57
Y: 29 31 19 18 19 27 27 29 41 30 26 10
Regression
1. Obtain the equation of 2 regression lines for the data given below
X: 1 2 3 4 5 6 7 8 9
Y: 17 20 25 30 33 32 39 40 42
2. Given the following results of the height & Weight of 1000 students the mean height is
170cm; the mean weight is 75Kg;the S.D of the height & weight are 6cm & 6Kg
respectively; r=0.60;Amit weight 50Kg, Summit is height 1.5m tall. Estimate the height
of Amit from his weight and weight of Summit from his height
3. You are supplied with the following data; Variance of X = 36;
12X – 85Y + 99 =0; 60X + 27Y = 321; Calculate
i) Average values of X & Y
ii) S.D of Y
iii) Correlation between X & Y
4. An analyst for a certain company was studying the relationship between trend expenses
in Rs (Y) for 102 sales trips and the duration in days(X) of these trips. He has found that
relationship between X & Y is linear. A summary of the data is given below
∑X = 510 ∑Y=7140 ∑XY = 54900 ∑X2=4150 ∑Y2= 740200
a. Estimate the two regression equations from the above data
b. A given trip has to take seven days how much money should a sales man be
allowed so that he will not run short of money
5. The two regression lines are 4x - 5y + 33 = 0 and 20x – 9y =107 and variance of x = 25.
Find (i) the means of x and y (ii) the value of r and (iii) σy
6. A company wants to assess the impact of R&D expenditure on annual profits. The
following table gives the information for years. Estimate the regression equation and
predict the annual profit for the year for an allocated sum of Rs15000 as R &D
expenditure
Year 1993 1994 1995 1996 1997 1998 1999 2000
R&D Expenditure(‘000Rs) 9 7 5 10 4 5 3 2
Annual profit(‘000Rs) 45 42 41 60 30 34 25 20
7. The following data were recently reported by an economist who wanted to learn about the
relationship between a family’s income and the proportion of that income spent for food.
Each of the families consisted of a married couple with two teenage children
Income (in ‘000Rs):14 18 22 28 35 39 42
% spent on food: 35 33 32 29 23 19 17
Predict the amount of money spent on food by a family of size 4 that earns 31000
annually
8. In the following table are reordered data showing the test scores made by salesmen as an
intelligence test and their weekly sales
Salesman 1 2 3 4 5 6 7 8 9 10
Test Score 0 70 50 60 80 50 90 40 60 60
Sales (‘000Rs) 2.5 6 4.5 5 4.5 2.8 5.5 3 4.5 3
Calculate the regression line of sales on best scores and estimate the most probable
weekly sales volume if a salesman makes a score of 7. Also estimate the test score when
the sales is 5000Rs
9. In the estimation of regression equation of two variables X and Y the following results
were obtained X = 90, Y=70, n =10, ∑X 2=6330, ∑Y2 = 2860, ∑XY = 3900, Obtain the
regression equations.
10. Two lines of regression are given by x+2y-5 = 0 & 2x+3y-8 = 0 and σx2 =12 calculate
a. The mean values of X & Y
b. Variance of y
c. Coefficient of correlation between x & y
11. Given the following data
X Y
Arithmetic Mean 36 85
SD 11 8
Correlation coefficient 0.66
a. Find the two regression equations
b. Estimate value of X when y=75
12. Regression equation of two variables X & Y are as follows 3X+2Y-26 = 0 & 6X+Y-31=0.
Find
a. Mean of X & Y
b. Regression coefficient of X on Y
c. Correlation coefficient of A & Y
d. The most probable value of Y when X = 5
13. A panel of judges A & B graded the following 7 debaters and independently awarded the
following marks
Debaters: 1 2 3 4 5 6 7
Marks A: 40 34 28 30 44 38 31
Marks B: 32 39 26 30 38 34 28
An eighth debater was awarded 36 marks by judge A while judge B was not present. How
many marks would you expect him to award the 8 th debater assuming that the same
degree of relationship exists in their judgment? Find also the correlation coefficient
Probability
1. It is that 8:5 against a husband who is 55 year old living till he is 75 & 4:3 against his
wife who is now 48 living till she is 68. Find the probability that at least one of them will
be alive 20 years hence
2. A, B and C are bidding for a contract. It is believed that A has exactly half a chance that
B has; B in turn has 4/5 th as likely as C has to gain the contract. What is the probability
for each to win the contract
3. The probability that machine A will be performing a usual function in 5 years time is ¼
while the probability that machine B will still be operating usefully at the end of some
period is 1/3. Find the probability that in 5 years time
a. Neither will be operating
b. Both machines will be performing a usual function
c. At least one of the machine will be operating
4. The probabilities of 3 students A, B, C solving a problem in statistics are ½, 1/3 and ¼. A
problem is given to all the 3 students. What is the probability that
a. At least two will solve the problem
b. Only one of them will solve the problem
5. The personal department of a company has records which show the following analysis.
Age Bachelor Master’s degree
Under 30 90 10
30-40 20 30
Over 40 40 10
a. If any one of them is selected what is the probability that the candidate has master
degree.
b. If any one of the maters degree holder is selected what is the probability that he is
over 40 years
c. If any one of the candidate below 30 years is selected what is the probability that
he has bachelors degree.
6. Three groups of workers contain 3men &1 woman, 2men & 2 women and 1 man & 3
women respectively. One worker is selected at random from each group. What is the
probability the group selected consists of 1 man and 2 women
7. A problem in QT is given to 5 MBA students A, B, C, D and E. Their chances of solving
it area ½, 1/3, ¼, 1/5 & 1/6. What is the probability that the problem will be solved
8. Suppose that one of the three men a politician, a business man, an educator will be
appointed as the vice chancellor of a University. The respective probabilities of appoints
are 0.5, 0.3, 0.2. The probabilities that research activities will be promoted by these
people if they are appointed are 0.3, 0.7 & 0.8 respectively. What is the probability that
the research will be promoted by the new vice chancellor
9. The probability that the contractor will get a plumbing contract is 2/3 & the probability
that he will not get an electrical contract is 5/9. If the probability of getting at least one
contract is 4/5. What is the probability he will get both the contracts.
10. A piece of equipment will function only when all the 3 components A, B & C are
working. The probability of A failing during one year is 0.1 that of B failing is 0.05 and
that of C failing is 0.10. What is the probability that the equipment will fail before the end
of the year
11. Two sets of candidates are competing for the positions on the board of a company. The
probabilities that the 1st and 2nd sets will win are 0.6 and 0.4 respectively. If the 1 st set
wins the probability of introducing a new product is 0.8 and the corresponding
probability of 2nd wins are 0.3. What is the probability that the product will be
introduced?
12. Three institutions train students for MKU entrance test. They train in the proportion 25%
(A), 35%(B), & 40%(C). Of the trained candidates for A, B & C 5%, 4% & 2% are
successful in the entrance test respectively. A candidate selected at random found to be
successful in the entrance. Find the probability that he was trained by A, B or C
13. The odds that A speaks the truth are 3:2 and the odds that B speaks truth are 5:3. In what
percentage of cases they to contract each other on an identical point.
14. The probabilities that 3 drivers will be able to drive home safely after drinking are 1/2, ¼
& 1/5 respectively. If they set out to drive home after a party what is the probability that
at least one driver will drive home safely.
15. A small insurance company has written theft insurance for two different businesses. In
any one year the probability that the business A is burglarized is 0.01. In any one year the
probability that the business B is burglarized is 0.15. Find the probability that
A) Both will be burglarized this year
B) Neither will be burglarized this year
C) Exactly one will be burglarized this year
16. The odds that a book on business mathematics will be favorably reviewed by 3
independent cities are to 2, 4 to 3 and 2 to 3 respectively. What is the probability that of
the 3 reviews
a) All will be favorable
b) Majority of the review will be favorable
c) Exactly one review will be favorable
d) At least one of the review will be favorable
17. A bag contains 6 white and 9 black balls. Two drawings of 4 balls are made in such a way
that
a) The balls are replaced before the 2nd trail
b) The balls are not replaced before the 2nd trail
Find the probability that the 1st drawing will give 4 white and the 2nd 4 black balls
18. Two students A & B are given the same problem to solve. The odds in favour of A solving
the problem are 4 to 6 while against B solving the problem are 5 to 6. Both the students
try to solve the problem. Find the probability of problem being solved.
19. A class consists of 100 students, 30 of them are girls and 70 boys, 10 of them are rich and
remaining is poor, 20 of them are fair complexioned. What is the probability of selecting
a fair complexioned rich girl?
20. An electric device is made of three components A, B and C. The probability of failures of
A, B and C are 0.01, 0.1 and 0.02 respectively. What is the probability that at any
particular instant that the device will work satisfactorily.
21. If A, B, C are mutually exclusive and exhaustive events and also P(A) = ½ P(B), P(B) =
2/3P(C) find P(A), P(B) and P(C)
22. Four cards are drawn at random from a pack of cards. Find the probability that
a. They are a king, a queen, a jack and an ace.
b. Two are king cards and two are queens
c. Two are black and two are red
d. There are two cards of heart and two cards of diamonds
23. In shuffling of pack of cards four are accidentally dropped. Find the chance that the
missing card should be one from each suit.
24. The probability that a management trainee will remain with a company is 0.60. The
probability that an employee earns more than Rs. 10000 per year is 0.50. The probability
that an employee is a management trainee who remained with the company or who earns
more than Rs. 10000 per year is 0.70. What is the probability that an employee earns
more than Rs. 10000 per year given that he is a management trainee who stayed with the
company?
25. Two computers A and B are to be marketed. A salesman who is assigned the job of
finding customers for them has 60% and 40% chances respectively of succeeding in case
of computer A and B. The computers can be sold independently. Given that he was able
to sell at least one computer what is the probability that the computer has been sold.
26. A bag contains 6 white and 9 black balls and 2 drawings of 4 balls in each draw are made
in such a way that
a. The balls are replaced before the 2nd trail
b. The balls are not replaced before the 2nd trail
Find the probability that 1st drawing will give 4 white and the 2 nd 4 black balls in each
case.
27. If the probability that a project will have an economic life of 20 years is 0.7 and the
probability that project B will have an economic life of 20 years is 0.5. What is the
probability that both will have an economic life of 20 years?
28. It is known that bolts produced by a certain process are too large 10% of the item and are
too small 5% of the item. If a prospective buyer selects a bolt at random from a lot f 500
such bolts what is the probability that it will be neither too long nor too small
29. One shot is fired from each of the three guns E1, E2, E3 denote the events that the target
is hit by the 1st, 2nd and 3rd gun respectively. IfPE1) = 0.5 P(E2) = 0.6 and P(E3) = 0.8 and
E1, E2 and E3 are independent, find the probability that
a. Exactly one hit is registered
b. At lest two hits are registered
c. Exactly two hits are registered.
30. A candidate is selected for interview of management trainees for three companies. For
the 1st company there are 12 candidates, for the 2nd there are 15 candidates and for the 3rd
there are 10 candidates. What are the chances of his getting job at least one of the
companies.
31. Suppose that one of the three men a politician, a business man and a n academician will
be appointed as chief administrator officer of a company. Their probabilities of
appointments respectively are 0.4, 0.25 and 0.35. The probabilities that research activities
will be promoted by their R & D department if they are appointed are 0.5, 0.4 and 0.8
respectively. What is the probability that research will be promoted by the new chief
administrator?
Expected value concept
1. A player tosses 3 fair coins. He wins Rs 5 if 3 heads appear, Rs3 if two heads appear, Rs
1 if one head occurs. On the other hand he loses Rs 15. If all tails occur. Find the
expected gain.
2. A player tosses two fair coins. He wins Rs 5 if two heads appear Rs 2 if one head appears
and Rs 1 if no head occurs. Find the amount he expects to win.
3. A petrol pump proprietor sells average Rs80000 petrol on rainy day and an average of Rs
95000 on clear days. Statistics from meteorological department show that the probability
is 0.76 for clear whether and 0.24 for rainy weather. Find the expected value of petrol
sale.
4. The probability that a man fishing at a particular place will catch 1, 2, 3, 4,fish are 0.4,
0.3, 0.2, 0.1 respectively. What is the expected number of fish caught?
Binomial Distribution
1. The probability that a bomb hits a target is given by 0.8. Assuming a binomial
distribution what is the probability that out of 10 bombings exactly 4 will be missed.
2. If on an average one vessel in every 10 is wrecked find the probability that out of 5
vessels expected to arrive at least 4 will arrive safely
3. The incidence occupational disease in an industry is such that the work men have 20% of
chance suffering from it. What is the probability that out of 6 work men 4 or more will
contract the disease?
4. Assuming that half of the population is vegetarian so that the chance of an individual
being a vegetarian is ½. Assuming that 100 investigators take samples of 10 individual
each to see whether they are vegetarians how many investigators would you expect to
report that three or less were vegetarians.
5. In a certain locality half of the households are known to use a particular brand of soap. In
a house hold survey sample of 10 households are allotted to each investigators and 2048
investigators are appointed for the survey. How many investigators are likely to report?
a. Exactly 3 users
b. Not more than 3 users
c. At least 4 users use that particular brand soap
6. A box contains 100 transistors, 20 of which are defective. Ten are selected for inspection.
Indicate what is the probability that
a. All 10 are good
b. At least one is defective
c. At most 3 are defective
7. Fit a binomial distribution to the following data
X: 0 1 2 3 4
F: 28 62 46 10 4
8. Assume that on an average one telephone number out of 15 is busy. What is the
probability that if 6 randomly selected telephones is called not more than 3 will be busy
9. If 10% of bolts produced by a machine are defective. Calculate the probability that out of
a sample selected at random of 7 bolts not more than one bolt will be defective
10. A machine manufacturing screws is known to produce 5% defective in a random sample
of 15 screws. What is the probability that there are
a) Exactly 3 defectives
b) Not more than 3 defectives
11. The probability that a bulb will fail before 100hrs is 0.2. Bulbs fail independently. If 15
bulbs are tested for life lengths what is the probability that the number of failures before
100hrs does not exceed 3
12. The mean of binomial distribution is 40 and the standard deviation is 6. Calculate the
necessary values of a Binomial distribution
13. Mr. Kumar conducted a check on quality on 10 transmissions removed from a pool of the
components. Historically only 2% of the transmissions have flaws.
a. What is the probability that the sample contains more than 2 flaws
b. What is the probability that it contains no flaws?
14. For a binomial distribution mea is 4 and variance is 2, find the probability of getting i) at
least 2 success ii) at most 2 successes
15. Probability of 3 successes in 5 independent trials to the probability of 2 successes in 5
independent trials is ¼. What is the probability of 4 success in 6 independent trails
16. If the birth sex ratio is 49girls to 51 boys. Find the probability of there being 8 or more
girls among 10 babies born on the same day in a maternity hospital.
Poisson distribution
1. It is known from the past experience that in a certain plant there are on the average 4
industrial accidents per month. Find the probability that in a given year there will be less
than 4 accidents
2. In a Poisson frequency distribution corresponding to 3 successes is 2/3 times the
frequency corresponding to 4 successes find
i. mean standard deviation of the distribution
ii. Probability of getting exactly 0 or 1 success
3. Suppose the probability that an item produced by a particular machine is defective equals
0.3. If 10 items produced from this machine are selected at random what is the
probability that not more than one defective is found. Use Poisson and Binomial compare
the awareness
4. In a company manufacturing toys it is found that 1 in 500 is defective. Find the
probability that there will be at most 2 defectives in a sample of 2000 units
5. A book containing 1000 pages has 0, 1, 2, 3or 4 misprints per page as shown below. Fit a
Poisson distribution to the above data and compare the theoretical frequencies with those
given in the question
Number of misprints: 0 1 2 3 4
Number of Pages: 500 340 120 30 20
6. On the average one in 400 items is defective. If the items are packed in boxes of 100
what is the probability that any given box of items will contain
a. No defectives
b. Less than 2 defectives
c. More than 3 defectives
7. A manufacturer of cotton pins knows 5% of his product is defective. If he sells cotter pins
in boxes of 200 and guarantees that not more than 10 pins will be defective. What is the
probability that the box will fail to meet the guaranteed quality.
8. Wireless sets are manufactured with 25 soldered joints each on the average one joint in
500 defective. How many sets can be expected to be free from joints in a consignment of
10000 sets
9. An automatic machine makes paper clips from coils of wire. On an average one in 400
clips is defective. If the paper clips are packed in boxes of 100. What is the probability
that any given box of clips will contain
i. No defective
ii. One or more defective
iii. Less than 2 defective
10. If the probability of a bad reaction from a certain injection is 0.001. What is the
probability that out of 2000 individuals more than 2 will get a bad reaction
11. If 2% of certain electric bulbs manufactured are defective find the probability that in a
sample of 200 bulbs i) less than 2 bulbs ii) more than 3 bulbs are defective.
12. A car hire firm has two cars which it hires out day by day. The number of demands for a
car each day is distributed as a Poisson variate with mea 1.5. Calculate the probability
that in a day i) neither car is used ii) Some demand is refused.
13. If X is a Poisson variate such that P(x = 2) = 9P(x=4) +90 P(X=6)
14. In a certain factory turning out razor blades there is a small chance of 0.002 for any blade
to be defective. The blades are supplied in packets of 10. Use Poisson distribution to
calculate the approximate number of packets containing no defective, one defective and 2
defectives respectively in a consignment of 1000 packets.
15. Assuming that the chance of traffic accident in a day in a street in Chennai is 0.001, how
many days out of 1000 days can we expect no accident, more than 3 accidents if there are
1000 such streets in the whole city?
16. If a random variable X follows a Poisson distribution such that P(x = 2) = P(x=1) find i)
P(x = 0) ii) P(x=1 or x=2 )
17. One fifth percent of the blades produced by a blade manufacturing factory turn out to be
defective. The blades are supplied in packets of 10. Use Poisson distribution to calculate
the approximate number of packets containing no defective, one defective and 2 defective
blades respectively in a consignment of 100000 packets
18. Find the probability that at most 5 defective fuses will e found in a box of 200 fuses if
experience shows that 2% of such fuses are defective
19. Assume that the chance of an individual coal miner being killed in a mine accident during
a year is 1/1400. Use Poisson distribution to calculate the probability that in a mine
employing 350 miners there will be at least one fatel accident
20. Number of road accidents during a month follows Poisson distribution with mean 6. Find
the probability that in a certain month number of accidents will be
a. Not more than 3
b. Between 2 and 4
Normal Distribution
1. Find the area under the standard normal curve which lie
a. To the right of z = 2.70
b. To the left of z = 1.73
c. To the right of z = -0.66
d. To the left of z = -1.88
e. Between z = -0.90 and z = -1.85
f. Between z = -1.45 and z = 1.45between z = -0.90 ad z = 1.58
2. The average test marks in a particular class is 79. The S.D is 5. If the marks are normally
distributed how many students in a class of 200 did not receive marks between 75 & 82
3. At a certain exam 10% of the students who appeared for the paper in statistics got less
than 30 marks and 97% of the students got less than 62 marks. Assuming normal
distribution find mean & S.D
4. If a large group of men 5% are under 60 inches in heights and 40% are between 60 and
65 inches. Find the mean height and standard deviation of a normal distribution.
5. The mean marks obtained by the MBA students in an examination are known to be
normally distributed. If 31% of the students got less than 45 marks while 8% got over 64
marks. Find mean and standard deviation of the marks
6. In an examination a student passes if he secures 30% or more marks. He is placed the 1 st ,
2nd or 3rd division accordingly as he secures 60% or more marks, between 45% and 60%
marks and marks between 30% and 45% respectively. He gets a distinction in case he
secures 80% or more marks. It is noticed from the results that 10% of the students failed
in the examination where as 5% of them obtained distinction. Calculate the percentage of
students placed in the 2nd division?
7. In a distribution exactly normal 10.03% of the items are under 25Kg weight and 89.97%
of the items are under 70Kg weight. What are the mean and standard deviation of the
distribution?
8. There are 600 business students in the Bharathiar University and the probability for any
student to need a copy of a particular text book from the University library on any day is
0.05. How many copies of the book should be kept in the library so that the probability
may be greater than 0.90 that none of the students needing a copy from the library has to
come back disappointed (Use normal approximation to the Binomial probability law)
9. The life of certain kind of electronic device has a mean of 300hrs and a standard
deviation of life 25 hours. Assuming that the distribution of life times which are
measured to the nearest hour can be approximated closely with a normal curve
a. Find the probability that any one of these device will have a life time of more than
350 hours
b. What percentage will have life time from 220 to 260 hours
10. In a certain area 8% of the families have their monthly income above Rs6400 and 31%
have below Rs4500. Assuming normality for the income distribution find the percentage
of families with monthly income below Rs5000
11. In a large institution 2.28% of employees receive income below Rs4500 and 15.87% of
employees receive income above 7500 per month. Assuming normal distribution find the
mean and standard deviation
12. The customer accounts at the departmental store have an average balance of Rs120 and
SD of Rs40. Assuming that the account balances are normally distributed find
a. What proportion of the accounts is over Rs150
b. What proportion of the account is between Rs100 and Rs150
c. What proportion of the account is between Rs60 and Rs90
13. There are 600 students in the Bharathiar University and the probability for any student to
need a copy of a particular text book from the university library on any day is 0.05. How
many copies of the book should be kept in the library? So that the probability may be
greater than 0.90 that none of the students needing a copy from the library has to come
back disappointed. (Use normal approximation to the binomial probability law)
14. A company finds that the time taken by one of its engineers to complete or repair job has
a normal distribution with mean 48 minutes and SD 5 minutes. The company changes
Rs20 if the job takes less than 35 minutes, Rs40 if it takes between 35 & 45 minutes and
Rs70 if it takes more than 48 minutes. Find the average charge for a repair job.
15. Assuming diameters of 1000 brass plugs taken consecutively from a normally distributed
with mean 0.7515cm and SD 0.0020 how many plugs are likely to be rejected if the
appointed diameter is 0.752 ±0.004cm
16. The mean weight of 500 male students at a certain college is 65.6Kg and Sd is 10Kg.
Assuming that the weights are normally distributed. Find how many students weigh
a) More than 75.5Kg
b) Between 55.5Kg and 75.5Kg
17. For a normal distribution with mean 3 and variance 16, find the value of y of the variable
such that the probability of the variable lying in the interval (3,y) is 0.4772
18. If a random variable X follows normal distributin with mean 18 and variance 625 find i)
P(31<x<67) ii) P(18<X<67)
19. If X is normally distributed and mean of X is 12 and SD is 4. Find out the probability of
the following
a) X≤ 20
b) X ≥ 20
c) 0 ≤ X ≤12
20. Life time of a bulb is known to follow normal distribution with mean 800 hours and
standard deviation 100 hours. What is the probability that a bulb lost for a minimum of
600 hours. What is the probability that a bulb selected at random will have life more than
100 hours
21. Consider a project that yields an average flow of Rs. 500 lakhs with a standard deviation
of Rs. 60 lakhs. Calculate the following probabilities
a. Cash flow will be more that Rs. 560 lakhs
b. Cash flow lie between Rs. 460 and Rs. 540 lakhs
22. The incomes of a group of 10000 persons were found to be normally distributed with
mean equal to Rs. 750 and standard deviation of Rs. 50. What was the lowest among the
richest 250?
23. The distribution of monthly incomes of 500 workers may be assumed to be normal with
mean of Rs2000 and a SD of Rs 200. Estimate the number of workers with incomes
a. Exceeding Rs 2300
b. Between Rs 1800 and Rs 2300
c. What was the lowest income of the 25% of the workers in the highest of group.
24. The daily wages of 1000 workers are normally distributed with mean Rs. 70 and standard
deviation Rs. 5. Estimate the number of workers whose daily wages will be
a. Between Rs. 70 & Rs. 72
b. More than Rs. 75
c. Less than Rs. 65
25. The Bombay municipal council corporation installed 2000 bulbs in the streets of
Bombay. If these bulbs have an average life of 1000 burning hours with a SD of 200 hrs.
What number of bulbs might have expected to fail in the 1st 70 burning hours?
26. The average daily sales of 500 branch offices was Rs150 thousands and the SD Rs 15
thousands. Indicate how many branches have sales between
a. Rs 120 thousands and Rs145 thousands
b. Rs 140 thousands and Rs165 thousands
27. X is normally distributed random variable such that 10% of the probability is below 60
and 5% of the probability are above 98 find the mean and SD
28. A producer of air mail envelopes knows from experience that the weight of the envelopes
is normally distributed with mean 1.95 gms and SD 0.05 gm. About how many envelopes
weighing 2 gms of more can then be expected in a given package of 100 employees.
29. A manufacturer knows from experiment that the resistor he produces is normal with mean
100 ohms and variance 40 ohms. What percentage of resistors will have resistance
a. Between 98 ohms & 102 ohms
b. Between 98 ohms & 104 ohms
UNIT IV
Index Number
Unweighted Index Numbers
Simple Aggregative method
1. From the following data compute an index for the year 2002 taking 2001 as base by
simple aggregative method
Year
Commodity 2001(Price Rs) 2002
A 1 5
B 2 4
C 3 3
D 4 2
2. From the following data compute index by simple aggregative method
a. Taking 2000 as the base year
b. Taking 2003 as the base year
Year Price of Rice (Rs)
2000 20
2001 25
2002 30
2003 45
2004 63
Simple Average of price relatives
3. From the following data compute an index for the year 2002 taking 2001 as base by
simple average of price relatives method using a) Arithmetic mean b) Geometric mean
method
Year
Commodity 2001(Price Rs) 2002
A 1 5
B 2 4
C 3 3
D 4 2
4. From the following data compute an index for three years taking average price as base by
simple average of price relatives method using arithmetic mean
Price (Rs)
Commodity 2001 2002 2003
A 1 5 3
B 2 4 1.5
C 3 3 4.5
D 4 2 6
Weighted Aggregative indices
5. Calculate price index number for the year 1996 with 1986 as the base year from the
following data using
a. Laspeyres index
b. Paasche’s index and
c. Fisher’s index
1999 2000
Commodity Price Qty Price Qty
A 15 15 22 12
B 20 5 27 4
C 4 10 7 5
d. Laspeyres index
e. Paasche’s index and
f. Fisher’s index
1986 1996
Commodity Unit Price(Rs) Values(Rs) Qty Consumed Value(Rs)
A Kg 10 1500 160 1760
B Kg 12 1080 100 1300
C Metre 15 900 60 960
D Packets 9 450 40 480
7. The following table gives prices and quantities for the base year and the current year for
three commodities. Calculate all the weighted aggregative index number
Commodity p0(Rs) q0(units) p1(Rs) q1(units)
A 10 15 15 20
B 20 20 30 30
C 30 25 45 40
i. Laspear’s method ii. Paasche’s method iii. Fisher’s Ideal index numbers
1995 1996
Commodity Unit Price (Rs) Value (Rs) Quantity Value
Consumed
A Kg 10 1500 160 1760
B Kg 12 1080 100 1300
C Meter 15 900 60 960
D Packets 9 450 40 480
9. Compute index number using Fishers’s Ideal Formula and show that it satisfies time
reversal test and factor reversal test.
Commodity Base year Current Year
Qty Price Qty Price
A 12 10 15 12
B 15 7 20 5
C 24 5 20 9
D 5 16 5 14
10. Calculate Fisher Ideal Index number and show how it satisfies reversal test
Price No of units
Commodity Base Current Base Current
A 6 10 50 56
B 2 2 100 120
C 4 6 60 60
D 10 12 50 24
X 8 12 40 36
11. The data in respect of middle class families of a city are given below. Calculate the
weighted index number for 2004
Items Weights 2003 Prices 2004 Prices
Food 35 550 600
Rent 15 60 80
Clothing 20 120 150
Fuel 10 40 30
Miscellaneous 20 50 60
12. Using all the 6 weighted price index method find the index numbers for the following
data
1986 1996
Commodity Unit Price per unit Expenditure(Rs) Price per Expenditure(Rs)
(Rs) unit (Rs)
1 Kg 4 200 5 300
2 Kg 5 250 7 350
3 Metre 3 180 6 480
4 Packets 5 120 8 360
13. The seasonal index for a particular consumer good fro January is 112.87. Actual demand
for January 1998 was 1265 units. Based on this information only what would be the
estimate of sales in 1998
14. An enquiry into the budgets of the middle families in a certain city in India gave the
following information. Calculate Index using family budget method.
Expenses: Food 40% Fuel 10% Clothes 20% Rent 20% Misc. 10%
Price in 1975:140 20 60 50 30
Price in 1980: 165 23 70 80 35
15. Calculate the price index number for 2005 by weighted average methods
1995 2005
Commodity Price Qty Price Qty
A 4 50 10 40
B 3 10 9 2
C 2 5 4 2
TIME SERIES
1. Fit a trend line for the following data by graphic method.
Year: 1980 1981 1982 1983 1984 1985
Pdn(in units): 45 50 48 60 55 70
2. Estimate the trend by free hand method
Year: 1995 1996 1997 1998 1999 2000 2001
Sales: 10 20 15 25 37 35 40
3. Estimate the trend by the method of semi averages
Year: 1990 1991 1992 1993 1994 1995 1996
Production: 100 120 95 105 108 102 112
4. Estimate the trend by the method of semi averages
Year: 1994 1995 1996 1997 1998 1999 2000 2001
Production: 10 12 18 20 20 25 23 32
5. From the following data calculate trend by 4 yearly moving average and find short term
oscillations
Year: 84 85 86 87 88 89 90 91 92 93 94 95
Production:5 6 7 7 6 8 9 10 9 10 11 11
6. Use 4 yearly moving average method to calculate trend for the following data
Year: 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Production: 614 615 652 678 681 655 717 719 708 779 757
7. From the data given below find 3 yearly moving averages
Year: 89 90 91 92 93 94 95 96 97 98 99
Sales: 10 15 20 25 15 12 15 24 15 21 15
8. The following series of observations is known to have a business cycle with a period of 4
years. Find the trend values by the moving average method
Year: 1989 1990 1991 1992 1993 1994 1995
Production: 506 620 735 865 798 663 779
9. Calculate 4 yearly moving averages for the data given below
Year: 85 86 87 88 89 90 91 92 93
Values:116 120 125 132 125 129 134 140 135
10. Construct a three yearly moving average from the following data
Year: 1976 1977 1978 179 1980 1981 1982
Value: 50 46 42 49 52 40 54
11. Estimate trend by moving average method.
Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
1995 40 35 38 40
1996 42 37 39 38
1997 41 35 38 42
12. Find the 5 yearly weighted moving averages with weights 1, 2, 2, 1 respectively for
measuring trend of the following time series.
Year: 74 75 76 77 78 79 80 81 82
Sales: 2 6 1 5 3 7 2 6 4
13. Find the trend for the following series using a three year weighted moving average with
weight 1, 2, 1
Year: 1999 2000 2001 2002 2003 2004 2005
Values: 2 4 5 7 8 10 13
14. Fit a straight line trend by the method of least squares to the following data
Year: 1991 1992 1993 1994 1995 1996
Production (in tones): 24 25 29 26 22 24
Estimate the likely production for the year 2000 and trend values for all the years
15. The following are the annual profits of a concern from 1998 to 2004
Years: 1998 1999 2000 2001 2002 2003 2004
Profits: 60 72 75 65 80 85 95 Fit a straight line trend by the
method of least squares, Using that estimate the profits for 2005
16. Calculate the trend values from the data given below and estimate the sales for the year
2007
Year: 1999 2000 2001 2002 2003 2004
Sales: 14 20 22 25 29 31
17. Fit a trend using 4 yearly moving average method for the following data
Year: 1979 1980 1981 1982 1983 1984 1985 1986
Earning: 38 40 65 72 69 60 87 95
18. Fit a straight line trend by the method of least squares to the following data
Year: 1991 1992 1993 1994 1995 1996
Production (in tones): 24 25 29 26 22 24
19. Fit a straight line trend by the least squares method to the data given below and estimate
the trend for 1995
Year: 1989 1990 1991 1992 1993 1994
Sales: 10 12 15 16 18 19
20. From the following data calculate the trend values by the least squares method and
estimate the sales of the company for the year 2002
Year: 1993 1994 1995 1996 1997
Sales of the
company in : 70 80 84 89 90
(Rs. In lakhs)
21. The projected number of women of child bearing age ( 15 – 49 ) for India from 1978 to
1985 are as follows.
Year: 1978 1979 1980 1981 1982 1983 1984 1985
No of Women: 152.6 156.4 160.3 164.4 168.5 172.7 176.9 181.2
Fit a trend line
22. The number of units of a product exported during 1993-2000 is given below. Fit a straight
line trend to the data. Calculate the output for the year 2004
Year: 1993 1994 1995 1996 1997 1998 1999 2000
No of 12 13 13 16 19 23 21 23
23. Calculate the seasonal index from the following data
Year Q1 Q2 Q3 Q4
1987 105 100 90 115
1988 110 105 95 115
1989 100 95 95 105
1990 115 110 100 125
24. Calculate seasonal indices by ratio to moving average method from the following data
Year I Qtr II Qtr III Qtr IV Qtr
2002 68 62 61 63
2003 65 58 66 61
2004 68 63 63 67
25. Find the seasonal indices by the ratio to moving average from the following data
Year I Qtr II Qtr III Qtr IV Qtr
2002 68 62 61 63
2003 65 58 66 61
2004 68 63 63 67
26. An increase of 50% in the cost of a certain consumption article raises the cost of living of
a certain family by 5%. What percentage of its cost of living was due to buying that
article before the change in the price
27. Compute the seasonal indices applying the simple average method for the following data.
Year Summer Monsoon Autumn Winter
1981 112 110 120 115
1982 80 105 105 90
1983 95 100 140 80
1984 110 90 130 110
1985 85 110 110 90
1986 92 120 100 85
28. What are the seasonal indices for various quarters
Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
1996 3.7 4.1 3.3 3.5
1997 3.7 3.9 3.6 3.6
1998 4.0 4.1 3.3 3.1
1999 3.3 4.4 4.0 4.0
Unit- V
Testing of Hypothesis for single proportion
1. A random sample of 100 items taken from a large batch of articles contains 5 defective
items i)set up a 96% confidence limits for the proportion defective items in the batch.
ii)If the batch contains 2696 items set up 95% confidence interval for the
proportion of defective items.
2. A person threw 10 dice 500 times and obtained 2560 times 4, 5 or 6. Can this be
attributed to fluctuations in sampling? Ans: 1.697
3. While throwing a dice 30 times a person obtained success 23 times (securing a 6 was
considered a success). Can we consider the difference between the observed and expected
results as being significantly different? ( Ans: 0.438)
4. A manufacturer claimed that at least 95% of the equipment which he supplied to a factory
confirmed to specifications. An examination of a sample of 200 pieces of equipment
revealed that 18 were faulty. Test his claim at a significance level of 0.01, 0.05. Ans:
2.596
5. In a sample of 500 people in Kerala 280 are tea drinkers and the rest are coffee drinkers.
Can we assume that both coffee and tea are equally popular in the atate at 5% level of
significance? Ans: 2.68
6. A coin was tosses 900 times and head appeared 490 times. Does the result support the
hypothesis that the coin is unbiased? Ans: 2.67
7. In a sample of 600 parts manufactured by a factory the number of defective parts was
found to be 45. The company however clained that only 5% of their product is defective.
Is the claim acceptable? Ans: 2.8
8. In a sample of 600 parts manufactured by a factory, the number of defective parts found
to be 45. The company however claimed that only 5% of their product is defective. Is the
claim tenable
9. Sky packets Managing director says with 95% confidence that there has been a
significant improvement in deliveries based on a sample of 81 deliveries out of which 6
were late. If in general 10% of deliveries were late in the part should Managing
Director’s statement be accepted? Ans: 0.78
10. Out of 20000 customers ledger accounts a sample of 600 accounts was taken to test the
accuracy of posting and balancing where in 45 mistakes were found. Assign the limits
with in which the number of defective cases can be expected at 98% level.
11. In a certain city 380 men out of 800 are found to be smokers. Discuss whether this
information supports the view that majority of men in this city are non smokers? Ans:
1.414
12. In a sample of 5000 births in a hospital, 2550 were male and the rest female. Test the
hypothesis that the male proportion is 0.5 in the population.
13. In a sample of 1000 people in Maharastra, 540 are rice eaters and the rest are wheat
eaters. Can we assume that both rice and wheat eaters are equally popular in this state at
1% level of significance? Also fine the confidence limits at this level.
Testing of Hypothesis for double proportion
14. In a sample of 600 men from a certain city, 450 men are found to be smokers. In a sample
of 900 from another city 450 are found to be smokers. Do the data indicate that the two
cities are significantly different with respect to prevalence of smoking habit among men?
Ans: 9.62
15. A company has the head office at Calcutta and a branch at Bombay. The personal director
wanted to know if the workers at the two places would like the introduction of a new plan
of work and a survey was conducted for this purpose. Out of a sample of 500 workers at
Calcutta 62% favoured the new plan. At Bombay out of a sample of 400 workers 41%
were against the plan. Is there any significant difference between the two groups in their
attitude towards the new plan at 5% level. Ans: 0.9146
16. A machine produced 20 defective articles in a batch of 400. After overhauling it produced
10 defectives in a batch of 300. Has the machines improved? Ans:1.13
17. Before increase in excise duty on tea, 400 people out of a sample of 500 persons were
found to be tea drinkers. After an increase in duty 400 people were tea drinkers out of a
sample of 600 people. Using the standard error of proportion state whether there is
significant decrease in the consumption of tea? Ans: 4.81
18. Random sample of 400 men and 600 women were asked whether they would like to have
a fly over near their residence. 200 men and 325 women were in favour of it. Test the
equality of proportion of men and women in the proposal?
19. In a certain district A, 450 persons were considered regular consumers of tea out of a
sample of 1200 persons. In another district B, 400 out of 800 consumed tea regularly. Do
these facts reveal a significant difference between the two districts as far as the tea habit
is concerned
20. In a year there are 956 births in a town A of which 52.5% were males whereas in town A
and B combined this proportion in a total of 1406 births was 0.456. Is there any
significant difference in the proportion of male and female birth in the two towns?
21. In a random sample of the 500 persons from Maharastra, 200 are found to be consumers
of vegetable oil. In another sample of 400 persons from, 200 are found to be consumers
of vegetable oil. Discuss whether the data reveal a significant difference between
Maharastra and Gujarat so far the proportion of vegetable oil consumers concerned.
Testing of Hypothesis for single Mean (Large Sample)
22. A random sample of size 16 has 53 as mean. The sum of the squares of the deviations
taken from the mean is 150. Can this sample be regarded as taken from the population
having 56 as mean at 95% confidence level?
23. For a random sample of size 900 the mean is 3.4 and SD is 2.61. Is it reasonable to
assume that this sample came from a normal population with mean greater than 3.25?
Ans: 1.72
24. A sample of 144 bricks has a mean weight 7.1 pounds and standard deviation of 0.30
pounds. Is it likely that this sample comes from a brick yard that produces bricks with a
mean weight 7 pounds?
25. A manufacturer of ball pens claims that a certain pen he manufactures has a mean writing
life of 400 pages with a standard deviation of 20 pages. A purchasing agent selects a
sample of 100 pens and puts them for test. The mean writing life for the sample was 390
pages. Should the purchasing agent reject the manufactures claims 5% level? Ans: 5
26. A random sample of 200 tins of coconut oil gave an average weight of 4.95Kgs with a
standard deviation of 0.21Kg. Do we accept the hypothesis of net weight 5Kgs per tin at
1% level? Ans: 3.37
27. A sample of 400 male students is found to have mean height of 171.38cms. Can it be
reasonably regarded as a sample from a large population with mean height 171.17cms
and standard deviation 3.30cms? Ans: 1.27
28. An automatic machine fills in tea in sealed tins with mean weight of tea 1 Kg and SD 1
Gm. A random sample of 50 tins was examined and it was found that their mean weight
was 999.50 Gms. Is the machine working property? Ans: 3.54
29. A sample size of 400 was drawn from a normal population with mean 4. The mean of the
sample is 4.5. Can it be regarded as true random sample?
30. An ambulance service claims that it takes on the average 8.9 minutes to reach its
destination in emergency calls. To check an this claim the agency which licenses
ambulance services has then timed 50 emergency calls getting a mean of 9.3 minutes with
a standard deviation of 1.8 minutes. At the level of significance 0.05, does this constitute
evidence that the figure claimed is too low.
31. The average number of defective articles per day in a certain factory is claimed to be less
than the average of all the factories. The average of all the factories is 30.5. A random
sample of 100 days showed the following distribution.
CI: 16 - 20 21 – 25 26 – 30 31 – 35 36 – 40
No. of Days: 12 22 20 30 16
Is the average less than the figure for all the factories? Ans: 2.68
Testing of Hypothesis for two Means (Large Sample)
32. Random samples drawn from two places gave the following data relating to the heights of
adult males.
Place A Place B
Mean height (inches) 68.50 68.58
SD of heights 2.5 3.0
Sample size 1200 1500
Test at 5% level that the mean height is the same for adults in the two places. Ans: 0.76
33. A collage conducts both day and night classes intended to be identical. A sample of 100
day students yields examination results as x = 72.4, s = 14.8 and sample of 200 night
students as x = 73.9, s = 17.9. Are the two means statistically equal st 1% level Ans:
0.77
34. The means of two samples of 1000 and 2000 members are respectively 67.5 and 68
inches. Can they be regarded as drawn from the same population with SD 2.5 inches?
Ans: 5.15
35. The following table gives the data on the hardness of wood stored outside and inside the
room.
Outside inside
Sample size 40 110
Mean 117 132
Sum of squares of deviation from mean 8655 27244
Test whether the hardness is affected by weathering. Ans: 5.42
36. A sample of 121 items has mean 84 and standard deviation 10. Another sample of 81
items has mean 81 and standard deviation 12. Estimate whether difference between the
means is significant or not.
37. Two random samples of sizes 400 and 500 have mean 10.9 and 11.5 respectively. Can the
samples be regarded as drawn from the same population with variance 25? Ans: 1.78
Testing of Hypothesis for single Mean (Small Sample)
38. A sample of ten house owners is drawn and the following values of their incomes are
obtained. Mean Rs.6000; SD Rs.650. Test the hypothesis that the average income of
house owners of the town is Rs.5500.
39. Certain refined edible oil is packed in tins holding 16Kg each. The filling machine can
maintain this but with a SD of 0.5Kg. Samples of 25 are taken from the production line.
If a sample mean is i) 16.35Kg ii) 15.8Kg can we be 95% sure that the sample has come
from a population of 16Kg tins?
40. A random sample of 9 items is taken from a certain measurement. From the data it is
found that �X = 108, �X = 1584. Find the confidence limits for the population
2
mean at 5% level of significance and test the hypothesis that the population mean is 8.
Ans: 7.388, 16.612
41. A machine is designed to produce insulating washers for electrical devices of average
thickness of 0.025cm. A random sample of 10 washers was found to have an average
thickness of 0.024cm with a SD of 0.002cm. Test the significance of the deviation. Ans:
1.5
42. A filling machine is expected to fill 5Kg of powder into bags. A sample of 10 bags gave
the weights 4.7, 4.9, 5.0, 5.1, 5.4, 5.2, 4.6, 5.1, 4.6 and 4.7. Test whether the machine is
working properly.
Testing of Hypothesis for Double Mean (Small Sample)
43. Two 12m boats are K- boat and L- boats are tested as possible contenders in the Kodai
cup racer. The following data represent the time in minutes to complete a particular track.
In independent random trails of two boats.
K- boat:12 13.1 11.8 12.6 14 11.8 12.7 12.4 13.5 12.2 11.6 12.9
L- boat: 11.8 12.1 12 11.6 11.8 12 11.9 12.6 11.4 12.0 12.2 11.7
Test whether the two boats perform equally well.
44. Two salesmen A and B are working in a certain district. From a sample survey conducted
by the Head office, the following results were obtained. State whether there is any
significant difference in the average sales between the two salesmen:
A B
No of sales 20 18
Average sales (in Rs) 170 205
SD (in Rs) 20 25 Ans: 4.65
45. Two batches of the same product are tested for their mean life. Assuming that the lives of
the product follow a normal distribution with an unknown variance, test the hypothesis
that the mean life is the same for both the batches given the following information
Batch Sample Size Mean life SD
I 10 750 12
II 8 820 14 Ans: (10.77)
46. Below are given the gains in weights(lbs) of cows fed on two diets X and Y. Gain in
weights (in lbs)
Diet X:25 32 30 32 24 14 32
Diet Y:24 34 22 30 42 31 40 30 32 35
Test at 5% level, whether the two diets differ as regards their effect on mean increase in
weight.
47. The incomes from a random sample of engineers in industry I are Rs.630,
650,680,690,710 and 720 per months. The incomes of a similar sample from industry II
are R.610, 620,650,660,620,690,700,701,720 and 730. Discuss the validity of suggestion
that industry I pays its engineers much better than industry II.
48. A collage conducts both day and night classes intended to be identical. A sample of 100
day students yields examination results as follows, mean-72.4, SD-14.8. For night
students: Sample size-200, mean-73.9, SD-17.9. Are the two means statistically equal at
10% level?
49. A sample of size 10 is drawn from each of two normal populations with the same
unknown variance and the following results are obtained.
Mean Variance
Sample I 7 26
Sample II 4 10
Test at 5% level if the two populations have the same mean.
Chi Square Test
50. The number of automobile accidents per week in a certain area is observed as given
below: 12, 8, 20, 2, 14, 10, 15, 6, 9 and 4. Are these frequencies suggested that accident
conditions remained the same during the above 10 week period.
51. The theory predicts that the proportion of beans in four given groups should be 9:3:3:1. In
an examination with 1600 beans, the numbers in the four groups were 882, 313, 287 and
118. Does the experiment result support the theory?
52. Genetic theory says that children having one parent of blood type M and other of blood
type N will always be one of the three types M, MN, N and that proportions of these
types will on average be 1:2:1. A report states that out of 300 children having one M
parent and one N parent, 30% were found to be of type M, 45% type MN and the
remainder of type N. Test the hypothesis.
53. A company produces a product of four sizes – small, medium, large and extra large. In
the past, the demand for these sizes has been fairly constant at 20% for small, 45% for
medium, 25% for large and 10% for extra large. A random sample of 400 recent sales
included 66 small, 172 medium, 109 large and 53 extra large. Test whether there is
evidence of significant change in demand for the different sizes.
54. The following table shows the distribution of digits in numbers chosen at random from a
telephone directory.
Digit: 0 1 2 3 4 5 6 7 8 9
Frequency: 1026 1107 997 966 1075 933 1107 972 964 853
55. A chemical extraction plant process sea water to collect sodium chloride and magnesium.
It is known that sea water contains sodium chloride, Magnesium and other elements in
the ratio 62:4:34. A sample of 200 tonnes of sea water has resulted in 130 tonnes of
sodium chloride and 6 tonnes of Magnesium. Are these data consistent with the known
composition of sea water at 5% level?
56. A company keeps records of accidents. During a recent safety review, a random sample
of 60 accidents was selected and classified by the day of the week on which they
occurred
Day : MON TUE WED THUR FRI
No of accidents: 8 12 9 14 17
Test whether there is any evidence that accidents are more likely on the some days than
others.
Test of Independence of attributes
57. Can vaccination be regarded as preventive measure of small-pox as evidenced y the
following data? Of 1482 persons exposed to small-pox in a locality 368 in all were
attacked. Of these 1482 persons, 343 were vaccinated and of these only 35 were attacked.
Given that Chi-square value at 5% level of significance for 1 degree of freedom is 3.84.
58. In a survey of 200 boys of which 75 were intelligent, 40 had educated fathers, while 85 of
the unintelligent boys had uneducated fathers. Do these figures support the hypothesis
that educated fathers have intelligent boys at 5% level.
59. For the data here use the chi-square test at 5% level of significances to state whether the
two attributes are independent
Condition of home
Condition of child Clean Dirty
Clean 70 50
Fairly clean 80 20
Dirty 45 30
60. 100 students randomly selected from the 1000 students enrolled on MBA programme
were classified by age and grade point. Accordingly the following data were compiled.
Grade point Age
25& under 26-28 over28
Up to 3.0 6 9 5
3.1-3.5 18 14 8
3.6-4.0 11 12 17
At 5% level of significance test the hypothesis that age and grade points are
independent.
61. A certain stimulus administered to each of 12 patients resulted in the following increase
of blood pressure. 5, 2, 8, -1, 3, 0, -2, 1, 5, 0, 4 and 6. Can it be concluded that the
stimulus will in general be an accompanied by an increase in blood pressure.
62. Investigate the association between the darkness of eye colour in father and son from the
following data. Fathers with dark eye and sons with dark eye – 50; . Fathers with dark
eye and sons with not dark eye – 79; . Fathers with not dark eye and sons with dark eye –
89; Fathers with not dark eye and sons with not dark eye – 782
63. Use Chi-square to test whether the proportion of serams declared unfit by 3 inspectors are
same.
Inspector X Y Z Total
Declared Fit 50 47 56 153
Unfit 5 14 8 27
Total 55 61 64 180
64. To test the efficiency of a new drug a controlled experiment was conducted wherein 300
patients were administered the new drug and 200 other patients were not given the drug.
The patients were monitored and the results were obtained as follows.
Cured Condition Worsened No effect Total
Given the drug 200 40 60 300
Not given the drug 120 30 50 200
Total 320 70 110 500
Use chi – square test for finding the effect of the drug.
65. The number of analysis run by three operators during different shifts is given below. Test
the hypothesis that the performance of operators is independent of shifts.
Operator
Shift 1 2 3
I 97 58 32
II 78 46 39
66. In a recent diet survey the following results were found in an Indian city. Discuss whether
there is any significant difference between the two communities in the matter of tea
taking.
No of families Hindus Muslims
Taking Tea 1236 164
Not taking tea 564 36
67. A sample of hotels in a particular country was selected. The following table shows the
number of hotels in each region of the country and in each of four grades.
Region
Grade Eastern Central Western
1 star 29 22 29
2 star 67 38 55
3 star 53 32 35
4 star 11 8 21
Show that there is evidence of a significant association between region and grade of hotel
in this country.
1. A simple sample of height of 6400 Englishmen has a mean of 67.85 inches and a standard
deviation of 2.65 inches while a simple sample of heights of 1600 Austrians a mean of
68.55 inches and standard deviation of 2.52 inches. Do the data indicate that the
Austrians are on the average taller than the Englishmen? Give reasons for your answer.
2. The results of a certain survey show that out of 50 ordinary shops of small size, 35 are
managed by men of which 17 are in cities, 12 shops in villages are run by women. Can it
be inferred that shops run by women are relatively more in villages than in cities.
3. In a sample of 600 students in a certain collage 400 are found to use dot pens. In another
collage from a sample of 900 students 450 were found to use dot pens. Test whether the
two collages are significantly different with respect to the habit of using dot pens.
Theory questions
Unit I:
1. What is EOQ? How is it determined?
2. What are the types of cost
3. Explain the procedure to find maxima and minima
4. Explain some applications of integrations.
5. List and explain different types of functions.
6. Explain trade off concept with suitable example.
7. State some business application of differentiation
8. Draw a break even chart
9. What is consumer’s surplus? Explain
10. Explain the managerial use of BEP?
11. What are the types of mathematical models?
12. Distinguish between linear and non linear functions
Unit II
13. Explain various measures of central tendencies
14. What are the types of correlation
15. What is Ogive curve? Explain
16. Distinguish between ungrouped data and grouped data. Give example
17. Distinguish between correlation and regression?
18. What are the measures of dispersion?
19. Describe the role of correlation and regression for the data given below.
Unit III
20. Define probability and hence write the addition and multiplication rule of probability
21. Define regression. Write regression lines Y on X and X on Y.
22. What is Bernoulli process? Explain its uses in Binomial distribution.
23. Explain the characteristics of binomial distribution
24. State the properties of normal distribution.
25. Explain discrete variable and continuous variable with suitable examples.
26. Explain the characteristics of Poisson distribution
Unit IV: Index Numbers
27. Write a brief note on value weighted stock market indices.
28. What are the types of Index numbers and explain any one of them.
29. Critically point out the significance of index numbers in economic and business analysis.
30. Explain the methods of constructing index numbers.
31. What is cost of living Index? Explain.
32. Explain the usefulness of Index numbers.
33. Describe the criteria of a good index number.
34. What are the tests for Index number?
35. How do you calculate consumer price index number?
Time Series
36. Explain the role of time series analysis in a business decision making.
37. Explain various components of time series analysis.
38. What are moving averages? Explain.
39. What are the various methods used for measuring cyclical variations?
40. Explain the various types of forecasting techniques?
41. Explain time series analysis
Unit V
42. Explain the test of independence
43. Explain the steps involved in the tests of significance.
44. What are the two types of errors? Explain?
45. Explain the following.I) Null hypothesis ii) Level of significance.
46. State the uses of chi – square test.
47. Write short note on ‘t’ distribution
48. Explain the importance of quantitative analysis in solving business with suitable example.

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