Statistics Practice Set

Chapter 1: Introduction
1. Define statistics and state the importance of uses of statistical methods in business
organizations.
2. What are the scopes of statistics in organizational performance?
3. What is primary data?
4. Distinguish between primary and secondary data.
5. How can we present statistical information?
6. Define secondary data and its main sources.
7. Write down the methods of primary data collection
8. Explain discrete and continuous variable with appropriate examples of each.
9. Distinguish primary and secondary sources of data with examples.

Chapter 2: Graphical representation of data

1. Draw ogives both less than and more than type for the following frequency distribution and hence
find the value of median graphically

Wages (in 50-60 60-70 70-80 80-90 90-100 100- 110-

Rs.O 110 120
Number of 8 10 16 12 7 5 2
employees

2. What is frequency polygon? Represent the following data as a frequency polygon

Income in Rs. Number of respondents

0--5000 20
5000 --10000 30
10000--15000 40
15000--20000 60
20000--25000 30
25000--30000 20

Chapter 3: Measures of Central Tendencies

1. The daily expenditure of 100 families are given as under:
 Expenditure 0-10 10-20 20-30 30-40 40-50
No. Of 14 - 27 - 15
families
The median and the mode of the distribution are Rs. 25 and Rs. 29 respectively. Calculate the missing
frequencies.

2. compare and contrast between the two above mentioned averages

3. Calculate median and mode from the following data:

Value Below10 Below20 Below30 Below40 Below50 Below60 Below70 Below80

Frequency 4 16 40 76 96 112 120 125

4. The daily expenditure of 100 families are given as under:

Expenditure 0-10 10-20 20-30 30-40 40-50

No. Of 14 - 27 - 15
families
The median and the mode of the distribution are Rs. 25 and Rs. 29 respectively. Calculate the missing
frequencies.

5. The mean mark in statistics of 100 students in a class was 72. The mean of mark of boys was 75
while the number was 70, find out the mean mark of the girls?
6. Can the values of mean, mode and median be the same? If yes, state the situation.
7. An incomplete distribution is given below

Variable : 0-10 10-20 20-30 30-40 40-50 50-60 60-70

Frequency: 10 20 x 40 y 25 15

Total =170 and median = 35 find x and y

8. What are the merits and demerits of Mean and Median?

9. What is a statistical average? Describe the characteristics of a good statistical average.
10. The following is the distribution of weights (in lbs.) of 60 students of a class:

Weights : 93 - 97 98 - 102 103 - 107 108 - 112 113 - 117

No. of Students : 2 5 12 ? 14

Weights : 118 - 122 123 - 127 128 - 132

No. of Students : ? 3 1

Total number of students = 60. If the mean weight of the students is 110.917, find the missing
frequencies.
 11. A company gave bonus to its employees. The rates of bonus in various salary groups are :

Monthly Salary in Rs : 1000-- 2000 2000-- 3000 3000-- 4000 4000-- 5000

Rate of Bonus in Rs 2000 2500 3000 3500

The actual salaries of staff members are as given below :

1120, 1200, 1500, 4500, 4250, 3900, 3700, 3950, 3750, 2900, 2500, 1650, 1350, 4800, 3300, 3500, 1100,
1800, 2450, 2700, 3550, 2400, 2900, 2600, 2750, 2900, 2100, 2600, 2350, 2450, 2500, 2700, 3200, 3800,
3100.

Determine (i) Total amount of bonus paid and

(ii) Average bonus paid per employee.

12. From the following table, showing the wage distribution of workers, find

(i) The range of incomes earned by middle 50% of the workers,

(ii) The range of incomes earned by middle 80% of the workers,

Monthly Income Rs No of Workers

0--- 20000 150

0--- 40000 250

0--- 60000 330

0--- 80000 380

0--- 100000 400

13. Find 3 Missing frequencies when Mean or Median or mode are given example

Class Frequency
0 - 10 4
10 - 20 16
20 - 30 ?
30 - 40 ?
40 - 50 ?
50 - 60 6
60 - 70 4
Total Frequency (N) = 230 and median;mode = 33.5,34

Chapter 4: Measures of Dispersion

1. The weights of three items X, Y and Z vary independently and have the following means and standard
deviations.

Mean weight kg Standard deviation kg

X 10 2

Y 14 2

Z 6 1

The three items are sold together in a single packet. Calculate the mean weight of a packet of one unit
each of X, Y and Z, and the standard deviation of the weights of packets.

2. What do you mean by inter quartile range? When can this be used as a measure of dispersion.

3. Find the coefficient of skewness from the following frequency distribution x : 14.5 15.5
16.5 17.5 18.5 19.5

f : 35 40 48 100 125 87

4. what are the different types of skewness explain with appropriate diagram

5. A sample of size 15 has mean 3.5 and standard deviation 3.0. Another sample of size 22 has mean 4.7
and standard deviation 4.0. If the two samples are pooled together, find the mean and the standard
deviation of the combined sample.

6. Coefficient of variations of two series are 58% and 69%. their standard deviations are 21.2 and 15.6.
Find out their arithmetic means.

7. The scores of two batsmen A and B in 10 innings during a certain season are as follows:

A 25 28 35 32 31 36 29 38 34 32
B 43 46 49 41 36 32 31 30 33 39

Find which of the batsman is more consistent in scoring.

8. Calculate the standard deviation from the following observations: 21, 22,22,25,24,26,30,31 and 24.
9. A student obtained the mean and Standard Deviation of 10 observations as 40 and 5.1 respectively. It
was later found that he had wrongly copied an observation 50 the correct figure being 40 calculate the
correct SD and correct mean.

10. The age of students who have enrolled for MBA program during the day session and the evening
session are described in the following data sets:

Day 23 29 27 22 24 21 25 26 27 24
Session
Evening 27 34 30 29 28 30 34 35 28 29
Session

If the homogeneity of the class is a positive factor in learning, use a measure of relative variability
to suggest which group will be easier to teach the management program.

11. What do you mean by relative measures of dispersion?

12.The standard deviation and mean return of 4 securities A, B, C and D are given below:

Security A B C D
Mean returns 10 15 20 25
Standard 0 10 20 30
Deviation

Which of the above securities is least consistent?

13.If arithmetic mean and coefficient of variation of a variable x are 10 and 50% respectively find the
variance?

14. The sum of squares of the items in a sample of 6 items is 91 and the sample mean is 3.5. Find the
standard deviation of the sample.

15. The standard deviation of a group of values is 2.73. If all value in the group are multiplied by 3, then
find the variance of the group.

16. Discuss the significance of skewness

17. Discuss the advantages of measures of dispersion over the measures of central tendencies.

18. The mean and standard deviation of 200 items are found to be 60 and 20 respectively, If at the time
of calculation, two items were wrongly taken as 30 and 67 instead of 13 and 20. Find the correct value of
mean and standard deviation.
 19. During the 10 weeks of a session, the marks scored by two candidates, Amit and Sandip taking the
computer programme course are given below:

Amit: 58 59 60 54 65 66 52 75 69 62

Sandip: 87 89 78 71 73 84 65 66 56 46

1) Who is the better scorer: Amit or Sandip?

2) Who is more consistent?

20. From the following data determine in which firm A or B there is greater
variability in individual wages

Firm A Firm B

Average monthly wages (in Rs.) 50.50 48.50

Variance of distribution of wages 144 121

21.The mean of a distribution is 14 and the standard deviation is 5. What is the value of the coefficient
of variation?

22.The variance of a set of data is 3. If every item is doubled then, what will be the variances of the
resulting data set?

Chapter 5: Correlation and Regression

1. . Quotations of index numbers of equity shares price of a certain joint stock company and of
prices of preference shares are given below:

Year 2003 2004 2005 2006 2007 2008 2009

Equity shares 97.5 99.4 98.6 92.2 95.1 98.4 97.1
Preference 75.1 75.9 77.1 78.2 79.0 74.8 76.2
shares
Use the method of Rank correlation to determine the relationship between equity share and preference
share prices.

2. Explain the term coefficient of determination.

3. Explain scatter diagram with appropriate example.

4. The finance manager of Crystal Technologies Ltd. Has collected the following data from past records:

Average receivable balance (Rs. In lakh) Bad Debts (Rs. In’000)

49 94
54 180
56 118
60 130
64 130
71 180
Draw a scatter diagram to show the correlation

The coefficient of correlation between average receivables balance and bad debts?

The percentage of variations in bad debts that is explained by the variations in average receivables
balance?

What is the percentage of variations in bad debts that remains unexplained?

5. Discuss the characteristics of regression coefficients.

6. Ten salesmen in a firm were put to a competency test. The test scores obtained by the sales person
and the monthly sales made by them are given below:

Test Score 30 60 40 50 70 40 80 30 50 50
Monthly 25 50 35 45 55 30 60 30 40 30
Sales(Rs.
000)

A regression equation has to be developed for estimating the amount of monthly sales from the test
scores. On the basis of this regression equation what is the estimated monthly sales for a salesman who
scores 90 in the competency test?

7. The regression equation calculated from given set of observations are x = -0.4y + 64 and

y = -0.6x + 46. Calculate mean of x and y and correlation co-efficient.

8. For a given bivariate data:

Σ X = 60, Σ Y = 40, Σ X2 = 4160, Σ Y2 = 1720, Σ XY = 1150, n = 10. Find the equations of two regression
lines.

9. If the equations of regression lines obtained in a correlation analysis are 3x +12y = 9 and 3y +9x = 46,
find the means, correlation coefficient and ratio of the variances of x and y.

10. The following data are available for the demand at various prices of a product:

Price (Rs. Demand

per unit ) (‘000 units)
10.00 30
9.00 44
8.00 63
7.00 72
6.00 90
5.00 108
4.00 125
3.00 140

Find the strength of association between two mentioned variables and interpret the finding.

11. In order to find correlation coefficients between two variables X and Y from 12 pairs of observations,
the following calculations were made:

∑X = 30, ∑Y = 10, ∑X 2 = 670, ∑Y 2 = 285, ∑XY = 334.

On subsequent verification it was found that pair ( X=11. Y = 4) was copied wrongly, the correct value
being ( X = 10, Y = 14). Find the correct value of correlation Coefficient.

12.You are given variance of x = 9. The regression equations are 8x – 10y + 66 = 0 and 40x – 18y
= 214.

Compute: (a) Average values of x and y : (b) Standard deviation of y.

13.The regression line of Y on X is given by Y = 38.52 + 0.476X and that of X on Y is given by X = -3.38 +
1.036Y. then, the value of r2 is

14. Given the regression equation of Y on X and X on Y are respectively y= 2x and 6x – y = 4. Find the
correlation coefficient between x and y?

15. While calculating the coefficient of correlation between two variables x & y, the

16. following results were obtained :

n = 25, ∑x = 125, ∑y = 100, ∑x 2 = 650, ∑y 2 = 460, ∑xy = 508.It was however later discovered at the time
of checking that two pairs of observations (x,y) were
copied (6,14) & (8,6) while the correct values were (8,12) & (6,10) respectively.

Determine the correct value of the coefficient of correlation.

17. For the variables x and y, the equations of two regression lines are

4x – 5y + 38 = 0 and 20x – 9y = 107

Identify the regression line of y on x and that of x on y. What is the estimate value of y, when x = 10 ?

18. Given the two regression coefficients, X on Y, 1.5 and Y on X, 0.2, find the value of correlation
coefficient.

19. Find the regression of x and y from the following data :

∑x = 24

∑y = 44

∑x 2 = 164

∑y 2 = 574

∑xy = 306

n = 42

20. You are given variance of x = 9. The regression equations are 8x – 10y + 80 = 0 and

40x – 18y = 416.

Compute :

(a) Average values of x and y :

(b) Standard deviation of y.

21.The two regression lines involving the two variables x and y are y = 5.6 + 1.2x and

x= 12.5 + 0.6y. Find the means of x and y and their correlation co-efficient.

22. From the data given below, find :

(i) The two regression equations

(ii) The correlation co-efficient between the marks in Mathematics and Statistics
(iii) The most likely marks in Statistics when marks in Mathematics are 30

Marks in

Mathematics 25 28 35 32 31 36 29 38 34 32

Marks in

Statistics 43 46 49 41 36 32 31 30 33 39

23.The coefficients of the rank correlation of the marks obtained by 10 students in two particular
subjects is found to be 0.5. It was later discovered that the difference in marks in two subjects obtained
by one of the students was wrongly taken as 3 instead of 7. What should be the correct value of
coefficient of rank correlation.

24.If the equation of two regression lines obtained in a correlation analysis are 3x +12y = 19 and 3y + 9x
=46. Find the means, correlation coefficient and the ratio of the variances of x and y.

25.The value of Spearman’s rank correlation coefficient for certain pairs of number of observations was
found to be 2/3. The sum of the squares of differences between corresponding ranks was 55. Find the
number of pairs.

26.If the correlation coefficient between random variables x and y is positive comment on the following
statements:

a. Correlation coefficient between -x and -y is positive.

b. We cannot infer about the sign of correlation between x and -y.

c. interpret the result r2= 0.64, where r2 is the coefficient of determination.

27. Compute interpret the coefficient of correlation for the two variables in the following data

X 20 21 18 23 12 10 9 11 14 17
Y 128 140 80 142 50 50 45 48 70 90
28. Obtain Spearman’s correlation coefficient for the following grades given to performance and
intelligence of employees.

Perfor A C B+ A+ B C+ B-
mance
Intellig 129 121 134 110 100 104 102
ence

29. Compute Carl Pearson and Spearman’s coefficient of correlation for the following two variables in
the following data. Compare the results. Draw a scatter plot to visualize the distribution.

x 123 142 111 132 121 120 121 118 116

y 22 31 21 24 25 23 22 28 34

30. Establish relation between Correlation and regression coefficients.

31. Explain the concept of correlation with suitable examples

Chapter 6: Probability Theory

1.Three boxes of the same appearance have the following properties of white and black balls:

Box I : 7 white and 2 black

Box II : 3 white and 1 black

Box III : 2 white and 4 black

One of the boxes is selected at random & one ball is drawn randomly from it. It turns out to be white.
What is the probability that the third box is chosen?

2. The board of Arvind Mills Ltd. is considering some major policy changes that will affect the
company’s three divisions. The management was keen on getting the employees opinion before
going ahead with the changes. Meetings were held with groups of employees from the three
divisions. The opinions of the employees are summarized in the table given below.

Opinion Textile Division Garments Finance

Strongly oppose 2 2 4
Slightly oppose 2 4 3
Neutral 3 3 5
Slightly support 2 3 2
Strongly support 6 3 1
 a. An employee from one of the groups strongly opposes the policy changes. What is the probability
that he is from the Finance division? (2)

b. An employee from one of the groups strongly supports the policy changes. What is the probability
that he is from the garments division? (2)

c. An employee from one of the groups remains neutral to the proposed policy changes. What is the
probability that he is either from Finance or from Garment division? (2)

d. What is the probability that an employee, from Finance division group strongly opposes the policy
changes? (2)

3. In a factory there are three machines used in the manufacturing of screws. The probability that

Machine A turns out a defective is 0.1

Machine B turns out a defective is 0.2

Machine C turns out a defective is 0.3

All three machines produce equal number of screws.

A screw picked at random and is found to be defective. What is the probability that it was produced by
machine A

A screw picked at random and is found to be defective. What is the probability that it was produced by
machine B

A screw picked at random and is found to be good. What is the probability that it was produced by
machine C

A screw picked at random and is found to be good. What is the probability that it was produced by
machine B

4. A problem in Statistics is given to three students A, B, and C, whose chances of solving it are 1/2, 1/3
and 1/4 respectively. If they are try to solve it independently. Find the probability that the problem will
be solved.

5. Sougata is known to hit a target in 5 out of 9 shots whereas Ankan is known to hit the same target in 6
out of 11 shots. What is the probability that the target would be hit once they both try?
6. Three identical boxes I, II, III contain respectively 4 white and 3 red balls, 3 white and 7 red balls, and
2 white and 3 red balls. A box is chosen at random and a ball is drawn out of it. If the ball is found to be
white, what is the probability that Box II was selected?

7 A fair coin is tossed, and a fair six-sided dice is rolled. What is the probability that the coin come up
heads and the die will come up 1 or 2?

8. A bag contains 2 red beads, 2 blue beads, and 2 green beads. Sara randomly draws a bead from the
bag, and then Victor randomly draws a bead from the bag. What is the probability that Sara will draw a
red marble and Victor will draw a blue marble?

9. A certain bag contains red, blue, yellow, and green marbles. If a marble is randomly drawn from the
bag, the probability of drawing a blue marble is 0.2, the probability of drawing a red marble is 0.3, and
the probability of drawing a yellow marble is 0.1. What is the probability of drawing a green marble?

10. An employee categorizes job applicants according to whether they have a university degree and
whether they have relevant work experience. In a large group of applicants, 70 percent have a degree
with or without any work experience and 60% have work experience with or without degree. 50% of the
applicants have both a degree and relevant experience.

a. What is the probability that a randomly selected job applicant has either a degree or relevant work
experience?

b. What is the probability that the applicant has neither a degree nor work experience?

11. The quality control department of a company has two machines A and B. A passes only 2% of the
defective products whereas B passes 7% of the defective products. A product finds its way to the
finished goods only after it passes by both the machines. What is the probability that a defective
product reaches the finished goods store?

12. A bag contains two green balls and four red balls and a second bag contains four green balls and
three red balls. If a ball is drawn at random from one of the bags, what is the probability that it is a
green ball?

A ball is drawn at random from a bag and it turns out to be green one. What is the probability that it
comes from the first bag?

13. In a firm 40 % of the work force are female, 25% of the female workers are management grade and
30% of the male workers are management grade. If a management grade worker is selected at random
from the firm, what is the probability that the worker will be a female?

14. There are 2 bags A and B .The bag A contains 3 black and 2 white balls whereas bag B contains 2
black and 3 white balls. One ball at random transferred from bag A to bag B and then 2 balls are picked
at random from bag B one by one. What is the probability of the second ball to be black with
replacement of the first ball?

15. A portfolio manager has been able to beat the market in 4 out of 5 periods, portfolio manager B has
been able to beat the market in 3 out of 4 periods and portfolio manager C has been able to beat the
market in 2 out of 3 periods. Assuming that past performance of all three managers will be repeated in
future also what is the probability of all the portfolio managers A,B,C beating the market index?

16. Three boxes of the same appearance have the following proportion of balls

2 black 1 white

1 black 5 white

4 black 2 white

One of the box is selected and one ball is drawn. It turns out to be white. What is the probability of
drawing white ball again, if the first one drawn is not replaced?

17. A box contains 40 bulbs out of which 5 are defectives. A customer draws a sample of three bulbs at
random one after the other. If the sample contains even 1 defective bulb the box is rejected. What is the
probability that the box is not rejected?

18. From the past experience it is known that a machine is set up correctly on 90% of occasions. If the
machine is set up correctly then 92% of the good parts are expected. But if the machine is not set up
correctly then the probability of a good part is only 35%. On a particular day the machine is set up and
the first component produced found to be good. What is the probability that the machine is set up
correctly?

19. Suppose while playing tennis a player gets her first serve in about 75% of the time. When she gets
her first serve in she wins the point about 80 % of the time. If she misses her first serve, her second
serve goes in about 90% of the time. When this happens she wins the point on her second serve about
35% of times.

Find the probability that she wins a point while serving?

If you know she won a point while serving what is the probability that she made her first serve in?

Chapter 7: Probability Distribution

1. The probability of a bomb hitting a target is 2/5. Four direct hits are necessary to destroy a bridge
completely. If 6 bombs are aimed at the bridge, what is the probability that the bridge will be
destroyed?
2. Discuss the characteristics of binomial distribution.
3. Discuss probability distribution
4. Explain Poisson distribution and its usage.
5. Discuss the characteristics of Normal distribution.
6. The probability that a person can achieve a target is 3/4. The count of tries is 5. What is the
probability that he will attain the target at least thrice?
7. Let’s say that 80% of all business startups in the IT industry report that they generate a profit in their
first year. If a sample of 10 new IT business startups is selected, find the probability that exactly
seven will generate a profit in their first year.
8. For some computers, the time period between charges of the battery is normally distributed with a
mean of 50 hours and a standard deviation of 15 hours. Rohan has one of these computers and
needs to know the probability that the time period will be between 50 and 70 hours.

9. The speeds of cars are measured using a radar unit, on a motorway. The speeds are normally
distributed with a mean of 90 km/hr and a standard deviation of 10 km/hr. What is the probability
that a car selected at chance is moving at more than 100 km/hr?

10. A group of students with normally distributed salaries earn an average of $6,800 with a standard
deviation of $2,500. What proportion of students earn between $6,500 and $7,300?

Chapter 8: Sampling Technique

1. Discuss the different sampling techniques.
2. Distinguish between random and non random sampling technique.