Assignment I

Business Statistics
PGDBRM Term I
 All the questions are compulsory and do on MS Excel.
 Create one Excel file and do each question on separate sheet and name the sheet
by question no.
 Submit the Excel Sheet on Moodle on or before 28/11/2021

1. The share prices of a company in Mumbai and Kolkata markets during the last ten months
are recorded below:
Month Mumbai Kolkata

January 105 108

February 120 117
March 115 120
April 118 130
May 130 100
June 127
125 July 109
125 August 110
120 September 104
110 October 112
135

Determine the mean and standard deviation of prices of share. In which market are the share
prices more stable?

2. Portfolio Management: A portfolio manager keeps a close watch on the price- earnings ratio
(defined as current market price divided by earnings for the most recent four quarters) of 200
common stocks. He reasons that, when most stocks in a representative sample have low price
earnings (P-E) ratios by historical standards, it is time to become an aggressive buyer. Low
P-Es may mean that investors in general are unrealistically pessimistic. Moreover, stocks
with low P-Es can benefit in a two- fold way when earnings increase: (a) higher earnings
multiplied by a constant P-E ratio means a higher market price and (b) rising earnings are
usually accompanied by rising P-E ratios. Find the descriptive statistics of the given data.

Price-Earnings Ratios for 200 common Stocks

12 10 9 8 18 29 20 13 7 7
21 5 23 22 22 11 10 14 8 28
 14 10 20 10 17 12 17 10 16 27
29 8 12 9 29 21 18 10 10 16
15 18 15 12 26 22 9 19 16 15
11 19 19 17 5 27 7 21 10 25
9 23 29 19 8 18 16 25 17 24
30 12 11 22 10 5 18 14 19 21
25 16 19 18 16 8 18 19 16 10
26 19 10 17 18 19 17 18 26 19
10 10 18 10 17 18 19 19 21 15
11 9 10 11 18 19 16 17 16 17
19 9 25 11 19 12 18 19 28 18
11 11 24 17 10 17 5 15 29 10
10 19 13 18 18 19 7 17 5 21
13 19 26 19 19 17 8 18 8 22
12 10 8 11 27 16 30 19 19 27
18 18 9 10 14 18 16 15 10 29
10 10 10 22 19 19 10 14 11 10
18 19 17 17 16 10 29 18 22 11

3. The following data represent the hottest career options in marketing:

Career Option Percentage
Product Manager 23
Market Research Executive 10
Direct Marking Manager 20
Manager-Events and Productions 10
VP Marketing 16
Other Marketing Careers 21
Construct a bar chart and pie chart for the data and thoroughly analyze the data

4. The following time series data taken from the annual report of a company represents per
share net income, dividend, and retained earnings during the period 2015-2019
Source 2015 2016 2017 2018 2019
Net Income (in 67.4 67.54 66.44 67.78 14.62
Rs)
Dividends (In Rs) 8.08 8.28 8.4 8.5 8.75
Retained 66.82 66.81 65.64 66.88 -10.56
Earnings (In Rs)
a) Construct a bar chart for per share income for the company during 2015-2019.
b) Construct a component bar chart depicting the allocation of annual earnings for the
company during 2015-2019.
c) Construct a line graph for the per-share net income for the period 2015-2019.
5. The medical superintendent of a hospital is concerned about the amount of waiting time for a
patient before being treated in the OPD. The following data of waiting time (in minutes) were
collected during a typical day:
Waiting Time Number of Patients
30-40 125
40-50 195
50-60 305
60-70 185
70-80 120
80-90 70
a) Use the data to construct ‘less than’ frequency distributions and ogive.
b) Use the ogive to estimate how long 75 % of the patients should expected to wait.

6. The following are the monthly figures of the advertising expenditure and sales of a firm. It is
generally found that advertising expenditure has its impact on sales. Following is the data:
Months Advertising Sales
Expenditure
Jan 50 1200
Feb 60 1500
March 70 1600
April 90 2000
May 120 2200
June 150 2500
July 140 2400
Aug 160 2600
Sep 170 2800
Oct 190 2900
Nov 200 3100
Dec 250 3900
a) Construct the scatter plot and regression line.
b) Find the correlation coefficient and do the interpretation