dlan

Institute of Management Lucknow

Poat Graduate Programme: QAM II
End-term Exam
Examination 2021: Section A, B &C

Cou Instructor: Kaustav

Full Marks: 40 Banerjee
Duration: 120 min
Instruction This is a closed book
Excel for exam. You the formula
computations. Write your
answers
can use
provided at the end. Use
A
concretely.
regional transit authority is
routes. In concerned about the number of riders on one ot 1t8 bus
setting up the route, the
on
every day from Monday assumption is that the number of riders is the same
through Friday, Using the data, test
authority's assumption is correct. the whether transit
(3+4+3)
Day Monday Tuesday Wednesday Thursday Friday
Riders 13 16 28 17 16 1

(a) Formulate the null and alternative hypotheses.

(b) State the decision rule and carry out the test.
(c) What is your belief in the null
hypothesis? Draw your conclusion
simple words in

2.With double-digit annual percentage increases in the cost of hcalth insurance, nore an
more workers are likely to lack health insurance coverage. The following data provide a
comparison of workers with and without health insurance coverage for small, medium,
and large companies. Conduct a test to determine whether employee health insurance
coverage is independent of the size of the company. (2+6+2)
Health Insurance
Size of Company Yes No
Small
Medium
36
65
14
10
X1-)
88 12 6-94
Large

(a) Formulate the null and alternative hypotheses.

the test at a 5%.
(b) State the decision rule and carry out conclusion in simple words.
null hypothesis? Draw your
(c)What is your belief in the
tuberculosis. Of 142 cases
tests conducted to learn about drug-resistant
Medical were
tested in Mumbai,
B. were found to be
drug-resistant. Of 268 cases
tested in New Delhi, 9 difference between
Do these data suggest a signifcant
5 were found to be drug-resistant. (2+4+4)
the drug-resistant cases in the two cities?

Formulate the null and alternative

hypotheses.
(a) out the test at a 5%. =

(b) State the decision rule and carry in simpie wors

null hypothesis? Draw your conclusion
What is your belief in
the
(C)
 w s regression analysis was done to check the 1unpact of tar and nicotine on
carbon monoxide, based
the questions.
on a study of 25 cigarettete brands. Study the output to answer
(2+2+2+4)
Estimate Std. Error t value Pr(It|)
(Intercept) 3.0896 0.8438 3.662 0.001371 **
Tar
0.9625 4.067 0.000512 ***
0.2367
Nicotine -2.6463 3.7872-0.699 0.492035
Residual standard
error: 1.413 on 22 degrees of freedom
Multiple R-squared: 0.9186, Adjusted
F-statistic: R-squared: 0.9112
124.1 on 2 and 22 DF, p-value: 1.042e-12
(a) State the fitted linear
regression
(6) Which predictor has a greater equation.
impact? Justify your answer.
(c) Do you consider the fitted model is
good enough? Justify your answer.
d) When simple linear regression
analyses were run using each predictor at a time, both
were found
extremely important. Why do you think the situation has changed, when
both the predictors are considered
together?
 Lucknow
of Management
Indian Institute
Graduate
Programme: QAM II
Post
2020: Section A, B & C
Examination
Mid-term

Instructor:
Kaustav Banerjee
Course
Duration: 90 min

Full Marks: 35
at the end of the paper.
You can check the formulae provided
This is a closed-book exam.

Excel for computations.

Write your answers concretely. Use
of a fast-food establishment, 27
at the drive-up window
1. Out of sample of 94 purchases
a
at least 1/3 of the
transactions
card. The c o n c e r n is, whether
were made with a major credit
aremade with the credit card.
here: finite or hypothetical? Briefly explain.
(a) How do you describe the population
interest? What is the range of the parameter?
(b) What is the parameter of
(c) Formulate the null and alternative hypotheses.
Write the sampling distribution of the estimator for the parameter of interest, assuming
(d)
that the null hypothesis is true.
What is your belief in the null hypothesis? What is your conclusion about the concern?
(e)
(2+2+2+2+2)
2. One company, actively pursuing the making of green gasoline, starts with biomass in the
form of sucrose and converts it into gasoline using catalytic reactions. At one step in a pilot
plant process, the output includes carbon chains of length 3. Fourteen runs with same catalyst
produced the product volumes (liter):
2.79, 2.88, 2.09, 2.32, 3.51, 331, 3.17, 3.62, 2.79, 3.94, 2.34, 3.62, 3.22, 2.80

While mean product volume is the prime parameter, it is also important to control variation.
Conduct a test with intent ofshowing that the population standard deviation o 0.8.
(a) How do you describe the population here: finite or hypothetical? Briefly explain.
(b) What is the parameter of interest? What is the range of the parameter?
(c) Formulate the null and alternative hypotheses.
(d) Write the sampling distribution of the estimator for the parameter of interest, assuming
that the null hypothesis is true.
(e) What is your belief in the null hypothesis? What is your conclusion about the concern?
(2+2+2+2+2)
3. Refer to the data set in Problem No. 2. Suppose the problem is to set the specification
limits for process mean with 99% confidence.

(a) Obtain the specification limits and interpret the same.

(b) What is the probability of raising a false alarm, if the mean has shifted to 3 liter?
(3+3+3)
4. Refer to Problem No. 1. We need to run a survey to confirm our concern.
(a) What would be the appropriate sample size for the survey, to have 99% confidence and
2% margin of error?
(b) Explain the planning value you have used to obtain the sample size. (3+3)

1
P.T
 INDIAN INSTITUTE OF
MANAGEMENT, LUCKNOW
MID TERM EXAMINATION
-

Course Quantitative Analysis for Management - II Max. Marks :35

Term II; PGP -1 (2020-2021) Time: 90 minutes
Date Decembe 14, 2020

Instructions:
I n each question (or part), if needed, write down
clearly the assumptions you are making
and/or results that you are making use of, otherwise marks will be deducted.
Parts of the same question are to be answered together.
You are supposed to carry calculator in the Examination hall.
D o not use lead pencil to answer the questions.
D o not leave any blank page in between two answers.
Answer all the questions. Questions carry equal marks.
1. An ice cream manufacturing company claims that it sells ice creams in packs of500 grams.
The production manager periodically checks on the basis of a sample study whether the
average weight of packs is actually 500 grams or it i_ less. A sample of64 packsreveals that
the standard deviation of the weight of packs is 40 grams. Based on her past experience, the
production manager decides that corapany cannot justify the claim of selling the packs of
500 grams if the sample average is 490 grams or less.

(a) Determine the probability that the manager concludes that the company's claim is no
longer valid, that is, average weight of ice cream packs drops below 500 grams when
actually company's claim is true.

(b) What is the probability that production manager concludes that company is justified in
its claim when actually the average weight of ice cream packs is 475 grams?

2. Shirley Mendez is the manager of quality assurance for Green Valley Foods Inc., a packer
of frozen vegetable prodtucts. Shirley wants to be sure that the variation of package weights
is small so that the company does not produce a large proportion of packages that are under
the stated package weight. She has been asked to work out upper and lower limits for the S
ratio of the sample variance divided by the population variance for a random sample of size
is below the lower limit is 0.025
twenty. The limits are such that the probability for the ratio
and that the probability for the ratio is above the upper limit is also 0.025.

Compute the interval estimate for the ratio of sample variance divided by the population
variance.

A market research group wishes to estimate the average number of customers visiting a
3.
super market in the month of December 2020. The group wants that its estimated value
should be within 5% of the actual value with a probability of 0.95. The earlier studies
indicated that the coefficient of variation of the umber of customers visiting the
supermarket in the given month was 24%. The per day cost of collection of data is Rs 125/

Contd...2
 Page-2

(i) Calculate the cost involved in estimating the required value.

i) If the group decides to settle for an estimate with a probability of 0.90, how much
reduction in cost can be achieved?

screws produced are

4. A manufacturer of screws has noticed that, on an average, 2% of the
the proportion of defective screws.
defective. A random sample of 400 screws is examined for between 0.01
of defective screws in the sample is
What is the probability that the proportion
and 0.03?
bottles whose
correctly, produces
bottles of shampoo, when operating
5. Aprocess that produces bottles from a single production
20 ounces. A random sample of
contents weigh, on average,
content weights (in ounces):
run yielded the following
20.1, 19.7,
20.6, 20.8,
21.4, 19.7, 19.7,
20.3, 20.9 alternative at 5%
two-sided
a
is operating correctly against
that the process
Test the hypothesis
level of significance.