BUSINESS STATISTICS

UNIT 1

1.1 Problems on Mean, Median, Mode, SD and CV

Mean- Individual Observations

1.The following table gives the monthly income of 10 employees in an office:

Income ( Rs) 14,780 15,760 26,690 27,750 24,840

24,920 16,100 17,810 27,050 26,950

Calculate the arithmetic mean of income.

Mean- Discrete Series

2. From the following data of the marks obtained by 60 students of a class, calculate the
arithmetic mean.
Marks 20 30 40 50 60 70
Number of students 8 12 20 10 6 4

Mean- Continuous Series

3. From the following data compute Arithmetic mean by direct method
Marks 0-10 10-20 20-30 30-40 40-50 50-60
No.of students 5 10 25 30 20 10

4. From the following data compute Arithmetic mean

Marks 0-10 10-30 30-60 60-100 100-150
No.of students 5 12 20 8 5

Correcting Incorrect Values

5.The mean marks of 100 students were found to be 40. Later on, it was discovered that a score
of 53 was misread as 83. Find the correct mean corresponding to the correct score.

Combined Mean
6. 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.

Median- Individual Observations

7. From the following data of the wages of 7 workers, compute the median wage:

Wages (in Rs) : 14,100 14,150 16,080 17,120 15,200 16,160 17,400

8. Obtain the value of median from the following data of the monthly income of 10 employees of
a company in Rupees.
14,391 15,384 25,591 15,407 16,672 26,522 16,777 26,753 27,850 37,490

Median- Discrete Series

9. From the following data find the value of median:

Income (Rs) 15,000 15,500 16,800 18,000 18,500 17,800

No. of persons 24 26 20 16 6 30

Median- Continuous Series

10. Calculate the median for the following frequency distribution:

Marks 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50
No.of students 7 15 24 31 42 30 26 15 10

11. Calculate the median for the following data:

Weight (in gm) 410-419 420-429 430-439 440-449 450-459 460-469 470-479
No. of apples 14 20 42 54 45 18 7

12. Calculate the median for the following data

Marks No.of students Marks No.of students
Less than 5 29 Less than 30 644
Less than 10 224 Less than 35 650
Less than 15 465 Less than 40 653
Less than 20 582 Less than 45 655
Less than 25 634

13. Compute median from the following data :

Mid value 115 125 135 145 155 165 175 185 195
Frequency 6 25 48 72 116 60 38 22 3

Calculation of missing frequencies

14. An incomplete distribution is given below:
Variable : 0-10 10-20 20-30 30-40 40-50 50-60 60-70
Frequency 10 20 ? 40 ? 25 15

(i) You are given that the median value is 35. Find out missing frequency (given the total
frequency = 170)
(ii) Calculate the arithmetic mean of the completed table.

Mode- Individual Observations

15. Calculate the mode from the following data of the marks obtained by 10 students:
Serial Number Marks obtained Serial Number Marks obtained
1 10 6 27
 2 27 7 20
3 24 8 18
4 12 9 15
5 27 10 30

Mode-Discrete Series
16. Calculate the value of mode from the following data:
Marks : 10 15 20 25 30 35 40
Frequency : 8 12 36 35 28 18 9

Mode-Continuous Series
17. Calculate mode from the following data:
Marks No.of students Marks No.of students
Above 0 80 Above 60 28
Above 10 77 Above 70 16
Above 20 72 Above 80 10
Above 30 65 Above 90 8
Above 40 55 Above 100 0
Above 50 43

18.Calculate mode from the following data:

Weight 93-97 98-102 103-107 106-112 113-117 118-122 123-127 128-
132
No.of
students 2 5 12 17 14 6 3 1

19. From the following data of 122 persons, determine the modal weight:
Weight : 100-110 110-120 120-130 130-140 140-150 150-160 160-170 170-180
No.of
Persons : 4 6 20 32 33 17 8 2

Standard Deviation - Individual Observations

20. Blood serum cholesterol levels of 10 persons are as under:
240 260 290 245 255 288 272 263 277 251
Calculate standard deviation with the help of assumed mean.

21. Calculate the standard deviation from the following observations:

240.12 240.13 240.15 240.12 240.17
240.15 240.17 240.16 240.22 240.21

Standard deviation- Discrete Series

22. Calculate the standard deviation from the data given below:
Size of the item 3.5 4.5 5.5 6.5 7.5 8.5 9.5
Frequency 3 7 22 60 85 32 8

23. The annual salaries of a group of employees are given in the following table:
Salaries (Rs) 45 50 55 60 65 70 75 80
No.of persons 3 5 8 7 9 7 4 7

Standard Deviation- Continuous Series

24. Calculate mean, median and Standard Deviation from the following data:
Profits : 0-10 10-20 20-30 30-40 40-50 50-60
No.of companies 12 17 23 39 16 3

25. 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

26. The following are some of the particulars of the distribution of weight of boys and girls in a
class.
Boys Girls
Number 100 50
Mean weight 60 Kg 45 Kg
Variance 9 4
(a) Calculate Standard Deviation of the combined data
(b) Which of the two distributions is more variable?

27. Calculate the mean wages and standard deviation of all the workers taken together.
Section Number of workers Mean wages (in Rs) Standard deviation (in Rs)
Employed
A 50 11130 600
B 60 11200 700
C 90 11150 800

28. The following table shows the monthly expenditure of 80 students of a University on morning
breakfast:
Expenditure No.of students Expenditure No.of students
780-820 2 530-570 13
730-770 6 480-520 9
680-720 7 430-470 7
630-670 12 380-420 4
580-620 18 330-370 2

Calculate arithmetic mean, Standard Deviation and Coefficient of variation of the above data.
29. From the prices of shares of X and Y below, find out which is more stable in value:
X 55 54 52 53 56 58 52 50 51 49
Y 108 107 105 105 106 107 104 103 104 101

30. The mean and standard deviation of a set of 100 observations were worked out as 40 and 5
respectively by a computer which by mistake took the value 50 in place of 40 for one
observation. Find the correct mean and variance.

31. The number of employees, wages per employee and the variance of the wages per
employees for two factories are given below.
Factory A Factory B
Number of employees 100 150
Average wage per employee per week (Rs) 3200 2800
Variance of the wages per employee per week (Rs) 625 729
(a) In which factory is there greater variability in the distribution of wages per employee?
(b) Suppose in factory B, the wages of an employee were wrongly noted as Rs3050 instead
of Rs 3650, what would be the correct variance for factory B?

1.2 Problems on Multivariate Summaries

1.Calculate Karl Pearson’s coefficient of correlation from the following data and interpret its
value:
Roll Number of students : 1 2 3 4 5
Marks in Accountancy : 48 35 17 23 47
Marks in Statistics : 45 20 40 25 45

2. Making use of the data summarised below, calculate the coefficient of correlation
Case X₁ X₂ Case X₁ X₂
A 10 9 E 12 11
B 6 4 F 13 13
C 9 6 G 11 8
D 10 9 H 9 4

3. Calculate the coefficient of correlation from the data given below by using direct method.

X :9 8 7 6 5 4 3 2 1
Y :15 16 14 13 11 12 10 8 9

4. Calculate the coefficient of correlation between X and Y from the following data and calculate
probable error. Assume 69 and 112 as the mean value for X and Yrespectively.

X : 78 89 99 60 59 79 68 61
Y : 125 137 156 112 107 136 123 108
Calculation of Correlation in Grouped Data

5. The following table gives the frequency according to groups of marks obtained by 67 students
in an intelligence test. Measure the degree of relationship between age and intelligence test.

Age in years Total

Test Marks 18 19 20 21
200-250 4 4 2 1 11
250-300 3 5 4 2 14
300-350 2 6 8 5 21
350-400 1 4 6 10 21
Total 10 19 20 18 67

6. The following are the marks obtained by 24 students of a class in Statistics and Accountancy
in an oral examination out of 20 in each subject:

Roll Number Marks in Marks in Roll number Marks in Marks in

of students Statistics Accountancy of students Statistics Accountancy
1 15 13 13 14 11
2 0 1 14 9 3
3 1 2 15 8 5
4 3 7 16 13 4
5 16 8 17 10 10
6 2 9 18 13 11
7 18 12 19 11 14
8 5 9 20 11 7
9 4 17 21 12 18
10 17 16 22 18 15
11 6 6 23 9 15
12 19 18 24 7 3

Prepare a correlation table taking the magnitude of each class interval as four marks and the
first interval as equal to 0 and less than 4. Calculate Karl Pearson’s coefficient of correlation
between the marks in Statistics and marks in accountancy and comment.

1.3 Problems on First Order and Second Order Coefficients

1. On the basis of the following information, compute:

(i) r₂₃.₁ (ii) r₁₃.₂ (iii) r₁₂.₃ where,
 r₁₂ = 0.70, r₁₃ = 0.61 and r₂₃ = 0.40

2. On the basis of observations made on 39 cotton plants, the total correlation of yield of
cotton (X₁), the number of bolls i.e., seed vessels (X₂) and height (X₃) are found to be :
r₁₂ = 0.8, r₁₃ = 0.65 and r₂₃ = 0.7

3. If r₁₂ = 0.86, r₁₃ = 0.65 and r₂₃ = 0.72, find the partial correlation coefficient r₁₂.₃
4. Is it possible to get the following from a set of experimental data:
(a) r₂₃ = 0.8, r₁₃ = -0.5, r₁₂ = 0.6
(b) r₂₃ = 0.7, r₁₃ = -0.4, r₁₂ = 0.6

1.4 Problems on Coefficient of Multiple Correlation.

1. The following zero-order correlation coefficients are given

r₁₂ = 0.98, r₁₃ = 0.44 and r₂₃ = 0.54.
Calculate multiple correlation coefficient treating first variable as dependent and second
and third variables as independent.