Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

Second Semester 2018-2019

Mid-Semester Test
(EC-2 Regular)

Course No. : MM ZG515

Course Title : QUANTITATIVE METHODS
Nature of Exam : Closed Book
Weightage : 35% No. of Pages =3
Duration : 2 Hours No. of Questions = 8
Date of Exam : 09/03/2019 (AN)
Note:
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
3. Assumptions made if any, should be stated clearly at the beginning of your answer.

Q.1. Differentiate between the following:

(a) Population vs. Sample
(b) Descriptive Statistics vs. Inferential Statistics
(c) Categorical variables vs. Numerical variables [3]

Q.2. A computer company received a rush order for as many home computers as could be
shipped during a six-week period. Company records provide the following daily
shipments:
22 65 65 67 55 50 65
77 73 30 62 54 48 65
79 60 63 45 51 68 79
83 33 41 49 28 55 61
65 75 55 75 39 87 45
50 66 65 59 25 35 53
Group the daily shipments figures into a frequency distribution having a suitable
number of classes (say 6). Also compute the relative frequency and percentage. [4]

Q.3. Time to get ready to the office for a person for 10 consecutive working days are as
follows (in rounded to the nearest minute):
Day 1 2 3 4 5 6 7 8 9 10
Time 39 29 43 52 39 44 40 31 44 35
(minutes)
Compute (a) arithmetic mean or mean (b) median (c) mode (d) range (e) variance and
(f) standard deviation of times for the sample. [0.5 + 1 + 1 + 0.5 + 1 + 1 = 5]

Q.4. A company is interested in understanding the consumer behaviour of the capital of the
newly formed state Chattisgarh, that is, Raipur. For this purpose, the company
selected a sample of 300 consumers and asked a simple question, “Do you enjoy
shopping?”. Out of 300 respondents, 200 were males and 100 were females. Out of
200 males, 120 responded “Yes”, and out of 100 females, 70 responded “Yes.” A
respondent is selected randomly. Construct a probability matrix and ascertain the
probability that: (a) the respondent is a male (b) enjoys shopping (c) is a female and
enjoys shopping (d) is a male and does not enjoy shopping (e) is a female or enjoys
shopping (f) is a male or does not enjoy shopping (g) is a male or female.
[0.5+1+1+1+1+1+0.5 = 6]

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Q.5. A brokerage survey reports that 30 percent of individual investors have used a discount
broker, i.e. one which does not charge the full commission. In a random sample of 9
individuals, what is the probability that
(a) Exactly two of the sampled individuals have used a discount broker?
(b) Not more than three have used a discount broker
(c) At least three of them have used a discount broker [1 + 2 + 2 = 5]

Q.6. The distribution of the annual earnings of the employees of a cement factory is
negatively skewed. This distribution has a mean of Rs 25,000 and standard deviation
of Rs 3000. If a researcher draws a random sample of size 50, what is the probability
that their average earnings will be more than Rs 26,000? [4]

Q.7. A research company conducted a survey on 300 randomly selected tax payers. It
found that out of 300 tax payers, 180 tax payers have filled the “SARAL” form
correctly. Construct a 95% confidence interval to estimate the percentage of tax
payers who have filled the form correctly in the population. [4]

Q.8. Individual filing of income tax returns prior to June 30 had an average refund of Rs
1200. Consider the population of ‘last minute’ filers who file their returns during the
last week of June. For a random sample of 400 individuals who filed a return between
25 and 30 June, the sample mean refund was Rs 1054 with standard deviation of Rs
1600. Using 5 percent level of significance, test the belief that the individuals who
wait until the last week of June to file their returns to get a higher refund than early
filers. [4]

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The Standardized Normal Distribution: Entry represents area under the standardized
normal distribution from the mean to z.

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