Andhra University School of International Business (AUSIB)

BBA-MBA Integrated Program

Model Paper – BBA 1st Year 1st Semester End Examinations

BUSINESS STATISTICS
T Time: 3Hours Max Marks: 70

PART-I 5 x 4 = 20 Marks

1. Answer any five of the following Questions.

(i) What are the various sources of collecting primary data and secondary data?

(ii) Find the median of the following data:

Class Interval 5-15 15-25 25-35 35-45 45-55 55-65
Frequency 8 14 18 24 10 6
(iii) Distinguish between positive and negative correlation.
(iv) Compute standard deviation for the following data set: 8, 12, 20, 6, 14, 9, 10, 17, 13.
(v) Distinguish between weighted and unweighted index numbers.
(vi) Explain the difference between (i) seasonal variation and (ii) cyclical variation.
(vii) The following information regarding a dependent variable Y and an independent variable X
is provided: X = 16, X2 = 84, Y = 24, Y2 = 174, XY = 72, n = 4. Find the regression
coefficients.
(viii) A computer equipment dealer sells three types of printers: Laser I, Laser II, and Laser III.
The prices of these printers for the years 1998 and 2001 are given below.
Unit Price ($)
Printer 1998 (Po) 2001 (Pt)
Laser I 2,800 2,000
Laser II 1,200 1,100
Laser III 800 644
Compute an unweighted aggregate price index for the printers. Let 1998 be the base period.

PART-II 5 x 7 = 35 Marks

Answer the following questions.

2. a) Explain the procedure for drawing (i) histogram (ii) frequency curve (iii) Ogive curve
with suitable examples.
Or
b. Find the missing frequency if arithmetic mean is 28 of the data given below.
Profits per shop: 0-10 10-20 20-30 30-40 40-50 50-60
No. of shops: 12 18 27 -- 17 6
3. a) What is skewness and kurtosis? Briefly discuss the significance of skewness and kurtosis. How
to calculate the coefficients of skewness?

Or
b) An analysis of the monthly wages paid to workers in two firms A and B, belong to the same
industry, gives the following result:
 Firm A Firm B
Number of wage earners 550 650
Average monthly wage Rs.1450 Rs.1400
Variance of the distribution Rs.10,000 Rs.19,600
(i) In which firm, A or B, is there greater variability?
(ii) What is the measure of standard deviation of all the workers taken together?
4. a) Compute the coefficients of correlation between the number of vehicles and sale of tyres
from the data given below:
No. of vehicles (‘000) : 5.4 5.6 5.8 6.2 6.4 5.5
Sales of tyres (‘000) : 11.8 12.0 14.5 16.3 13.8 12.2
Or
b) Are good grades in college important for earning a good salary? A business statistics student
has taken a random sample of starting salaries and college grade-point averages for some
recently graduated friends of his college. The data follows:
Starting salary 36 30 30 24 27 33 21 27
($ thousands)
Grade Point 4.0 3.0 3.5 2.0 3.0 3.5 2.5 2.5
Average (GPA)
Develop the regression equation that best describes this data.

5. a) Define Moving Average method and weighted moving average method. For the following time
series data, calculate the sales for 11th week using 3-week moving average method.

Week 1 2 3 4 5 6 7 8 9 10
Sales($1,000s 17 15 20 18 19 21 19 23 14 19
)
Or
b) The sales records of a major auto manufacturer over the past eight years are shown below.
Year (t) 1 2 3 4 5 6 7 8
Number of cars 165 180 210 230 280 310 340 380
sold (1000 units)
Develop a linear trend expression and project the sales (the number of cars sold) for time period t
= 10.

6. a) What are the tests of a good index number? Explain Paasche’s, Lasperey’s and fisher’s
index numbers. Verify if they satisfy these tests?
Or
b) An electronics and appliance store sells three different types of VCRs. The three types sold
by the store are 4-head with stereo, 4-head, and 2-head. The unit prices for the years 1996 and
2001, with the volume of sales (units sold) for 1996, are given below.
Unit Price ($) Units Sold
VCR 1996 (po) 2001 (p1) 1996(q0) 2001(q1)
 4-Head with Stereo 700 900 200 275
4-Head 500 600 300 325
2-Head 300 420 500 400
(i) Compute an unweighted aggregate price index for VCRs for 2001 with 1996 as the base
period.

(ii) Compute a weighted aggregate price index (Laspeyres index and Paasche) for 2001 with
1996 as the base period.

PART-III 1X15=15 Marks

Case Study Compulsory
7. An automobile dealer wants to see if there is a relationship between monthly sales and the
interest rate. A random sample of 8 months was taken. The results of the sample are presented
below:
Y X
Monthly Sales Interest Rate (In Percent)
22 9.2
20 7.6
10 10.4
45 5.3
36 6.8
28 7.9
18 9.3
40 6.1
(i) Find the correlation coefficient between monthly sales and interest rate. Discuss the
significance of the correlation coefficient. Also calculate the coefficient of determination and
discuss its significance.
(ii) Determine the estimated least squares regression equation of monthly sales on interest rate.
Based on the regression coefficient, discuss the relationship between the two variables.
(iii) Estimate the monthly sales when the interest rate is 8.2 percent.
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