AHMEDABAD UNIVERSITY AMRUT MODY SCHOOL OF MANAGEMENT UNDERGRADUATE / GRADUATE PROGRAMMES 2021 MONSOON SEMESTER END [ESTER EXAMINATION (RE-TEST) TODS01: PROABILITY AND STATISTICS Date: 05- Total Marks: 50 Time: 2 hours INSTURCTIONS | 1. Alf questions are compulsory. | Please show all steps of the calculations. Explanatory sketches (where applicable) carry more credentials Present your resulis up to THREE decimal places only: You are free to use the Probability Distribution app on your mobile phone but please ensure that your mobile phone is on AIRPLANE MODE. Anyone using the phone to access the internet, or any documents stored on the mobile phone, will be disqualified from the exam. Question 1 - Write short notes on any TWO [5 marks] lain the difference between correlation and regression? b) Explain sampling distribution of a statistic? OR A recent report of the real estate association mentioned that the average monthly workhours of construction workers is 210. The union of the construction workers claims this as underreporting. The controversy is being investigated by the local media and to settle matters they do a random sample survey of the daily workhours (tabulated below). Conduct a null hypothesis significance test (at 5% level of significance), assuming the population is normally distributed. . 214 [210 | aia | 208 | 209 | 212 [211 | 214 | 210 | 209 | 210 211 | 208 | 214 | 211 | 213 | 208 | 214 | 211 [ 212 | 208 | 211 s=2.16 OR A sample survey to assess stock investment risk of start-up firms was conducted. The data is shown in the table below along with the risk for established firms. Using the chi-squared goodness-of-fit test (at 5% level of significance), comment on whether the risk of investing in start-up firms is similar to that of established firms. Investment risk | Sample start- | Established up firms ‘firms | High 155 52.0% Medium 100 35.0% Low 40 10.0% Poor 30 3.0% Pave 1 ofQuestion 2 [10 marks} The following data shows the average annual tumover of similar sized pharmaceutical manufacturing firms along with the average annual loan they took out. Is there a correlation between turnover and loan? alculate the Pearson's cor int to answer the question and comment on the results. tion coef Firm name | ual surnover | Annual loan pe re @cror Thanos _ 70.0 Hulk meee Thos Ironman | Spiderman Wolverine Superman. P| Batman Gambit Question 3 [10 marks] Calculate the rank correlation coefficient from following data and comment. ohn Rank in on-site safety Rank in least number infrastructure investment | of accidents on site BECOM 2 [ 3 SPJ 8 8 CIMPLEX 10 10 CLF 12 ¥ TYDER. 9 iu JAMMON i 12 IPMG : 3 4 KLL 4 1 L&P 6 7 PSPS 7 6 AU 1 2 TATATA, § 5 Pave 2 of 3Question 4 [25 marks} Project managers were surveyed to obtain their salary and working experience, which is tabulated below Work experience | Monthly salary | (@ thousand) Qrears) _ 8.1 11.0 5.8 40 Using the above data, develop a regression model for estimating monthly salary based on work experience and answer the following: Estimate the parameters of the regression model [4+2 marks] Report your regression model equation [2 marks] Estimate the coefficient of determination [4 marks} Tabulate the errors or residuals for any four points [2 marks] Conduct a test of significance on the estimated slope parameter, using either critical value or p-value or confidence interval approach [6 marks} ‘Comments on the result of the significance test and interpretation of slope parameter [2 marks] Calculate the coefficient of correlation for this data and cross check your result using the value in [c] above [3 marks] End of paper Page 3 of 3