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Homework 7

Lovely School of Management Department of Management

Name of the faculty member: Vikrant Vikram
Course No: MGT 252 Course Title: Quantitative Techniques for
Class: B.Com. Section S3807 Batch: 2009
Max. Marks: 5 Date of Allotment: 13-04-2011 Date of Submission: 20-03-2011


1. The sales data of an item in six shops before and after a special promotional
campaign are as under:
Shop 1 2 3 4 5 6
Before 53 28 31 48 50 42
After 58 29 30 55 56 45
Can the campaign be judged to be success? Test at 5% level of significance.

2. You are working as a manager for a company. The following information has
been supplied to you by two manufacturers of electric bulbs:
Company X Company Y
Mean life 1300 1250
Standard deviation 85 90
Sample size 90 110
Which brand of bulb are you going to purchase if you desire to take risk of

3. The current advertising campaign for coca-cola would be changed if less than
30 percent consumers like it.
i. Formulate the null and alternative hypothesis

ii. Discuss the type I and type II errors that could occur in hypothesis

iii. Which statistical test would you use? Why?

iv. A random sample of 200 consumers was surveyed, and 64

respondents indicated that they liked the campaign. Should the
campaign be changed? Why?
4. A major departmental store chain (Reliance India) is having end of season
sale on refrigerators. The number of refrigerators sold during this sale at a
sample of 10 stores was:
80 110 0 40 70 80 100 50 80 30

i. Is there evidence that an average of more than 50 refrigerators per

store were sold during the sale?

ii. What assumption is necessary to perform this test?

5. A researcher for an auto manufacturer is examining preferences for styling

features on larger sedans. Buyers were classified as first time and repeat,
resulting in the following table
European styling Japanese styling
Repeat 40 20
First Time 8 32
Test the hypothesis that buying characteristic is dependent of styling

6. A certain drug is claimed to be effective in curing cold. In an experiment on

500 persons with cold, half of them were given the drug and half of them were
given sugar pills. The patient’s reactions to the treatment are recorded in the
following table:
Treatment Helped Reaction No effect Total
Drug 150 30 70 250
Sugar Pills 130 40 80 250
Total 280 70 150 500
On the basis of the data, can it be concluded that there is a significant difference
in the effect of the drug and sugar pills? (v= 2 ,5.99=20.05 ‫ א‬and v=4 =20.01 ‫א‬