S.A.

ENGINEERING COLLEGE
(An Autonomous Institution, Affiliated to Anna University)
Accredited by NBA & NAAC with ‘A’ Grade
ISO 9001:2015 Certified Institution

MB2102 STATISTICS FOR MANAGEMENT

UNIT I
INTRODUCTION
PART-A

1. Define conditional probability?

2. The mean and S.D of a binomial distribution are 5 and 2. Determine the
distribution?
3. Define uniform or rectangular distribution and write down its properties?
4. State the theorem of Probability.
5. If A and B are independent events that prove that A and 𝐵 are
independent events.
6. Let X be the lifetime in years of a mechanical part. Assume that X has
the cdf 𝐹(𝑥) = 1 − 𝑒 −𝑥 , 𝑥 > 0. Find 𝑃(2 < 𝑋 < 4).
7. State Baye’s theorem.
8. An experiment consists of three independent tosses of a fair coin. Construct the
sample space for it. Find the probability of getting two heads.
9. Suppose that X has a Poisson distribution with parameter 𝜆 = 2.
Compute 𝑃[𝑋 ≥ 1].
10. State the properties of Normal distribution.
PART-B
1. The following mistakes per page were observed in a book :
No. of mistakes per page 0 1 2 3 4
No. of times the mistake 211 90 19 5 0
occurred
Fit a Poisson distribution.
2. Write down the difference between binominal and Poisson distribution?
3. A machine manufacturing screws is known to produce 5% defective. In
a random sample of 15 screws what is the probability that there are (1)
exactly 3 defectives (2) not more than 3 defectives.
4. A random variable 𝑋 has a uniform distribution over (-3,3). Compute
𝑖)𝑃[𝑋 < 2]𝑖𝑖)𝑃[|𝑋| < 2]𝑖𝑖𝑖)𝑃[|𝑋 − 2| < 2]. ii) Find 𝑘 for which 𝑃[𝑋 > 𝑘] = 1/3.
5. A random variable 𝑋 has the following probability function:
 𝑋 0 1 2 3 4 5 6 7 8
𝑃(𝑥) 𝑎 3𝑎 5𝑎 7𝑎 9𝑎 11𝑎 13𝑎 15𝑎 17𝑎
(𝑖) Determine the value of 𝑎
(𝑖𝑖) Find 𝑃(𝑋 < 3), 𝑃(𝑋 ≥ 3), 𝑃(0 < 𝑋 < 5)
(𝑖𝑖𝑖) Find the distribution function of 𝐹(𝑥).
6. If 𝐹(𝑥) = 𝑘(1 + 𝑥), 2 < 𝑥 < 5 is a continuous probability density function of
random variable X. Find (i) 𝑃(𝑋 < 4) (ii) 𝑃(3 ≤ 𝑋 ≤ 4) (iii) (ii) 𝑃(𝑋 ≥ 3)
7. In a bolt factory machines A1, A2, A3 manufacture respectively 25%,35% and
40% of total of their output. In this 5%,4% and 2% are defective bolt. A bolt is
drawn at random from the product and is found to a defective what are the
probability that it was manufacture by machine A1, A2, A3?
8. An experiment consists of throwing two six-sided dice and observing the number
of spots on the upper faces. Determine the probability that the sum of the spots
is 3
i. each die shows four or more spots
ii. the sum of the spots is not 3
iii. neither a one nor a six appear on each die
iv. a pair of sixes appear
v. the sum of the spots is 7.
9. An insurance salesman sells policies to 5 men, all of identical age and good health.
According to the actuarial tables the probability that a man of this particular age will
be alive 30 years hence is 2/3. Find the probability that 30 years hence
i. at least 1 man will be alive,
ii. at least 3 men will be alive,
iii. all 5 men will be alive
iv. At most three men will be alive
10. A husband and wife appear for an interview for 2 vacancies in the same post.
Probability of husband selection is 1⁄7 and probability of wife selection is 1⁄5. Find
the probability
i. both of them selected
ii. one of them selected
iii. none of them selected
11. Global gain company has the average yearly sales in an outlet is Rs.25 lakhs and the
SD is Rs.5 lakhs. Find the Probability of sales
i. Less than Rs.20 lakhs
ii. Greater than Rs.30 lakhs
iii. between Rs.20 lakhs and 30 lakhs
iv. Since 1000 outlets the company owns ,find the number of outlets have sales
less than Rs.15 lakhs.
 UNIT II
SAMPLING DISTRIBUTION AND ESTIMATION
PART-A
1. An automobile repair shop has taken random sample of 40 services that the
average service time on an automobile is 130 minutes with a standard
deviation of 26 minutes. Compute the standard error of the mean?
2. Define stratified sampling technique?
3. What is called interval estimation?
4. State Central limit theorem.
5. What is a sampling distribution?
6. What is called Point estimation?
7. Define the following terms:
Statistic, Parameter, Sample, Population.
8. State the qualities of good estimator.
9. List the various Sampling techniques.
10. What is standard error of mean?
PART-B
1. A random sample of 700 units from a large consignment have damage of 200
units. Find:
i) 95% confidence limit.
ii) 99% confidence limit
for the proportion of damaged unit in the consignment?

2. Explain in detail about sampling techniques.

3. In a normally distributed population, average income per household is Rs.
20,000 with a standard deviation of Rs. 1,600. Find the probability that the
sample mean will be between Rs 19,600 and Rs.20,200 in a survey of a random
sample of 100 households.

4. A simple random sample of 121 items resulted in a sample mean of 1280 and
a standard deviation of 66.
i. Is it necessary to know anything about the shape of the distribution in
order to make an interval estimate of the mean?
ii. Find the standard error of the mean
iii. Give point estimate of the mean
iv. Develop 80% and 95% confidence limit for the population mean?

5. The life expectancy in United States is 75 years with the standard deviation of
7 years. A random sample of 49 individuals is selected. What is the probability
that the sample mean will be
i. larger than 77 years
 ii. less than 72.7 years
iii. between 73.5 and 76 years
iv. between 72 and 74 years
v. larger than 73.46 years

6. In a quality department of manufacturing paint at the time of dispatch, 30%

containers are found to be defective. In a random sample of 500 drawn with
replacement from the population what is probability that the sample proportion
will be less than 25% defective.

7. Estimate the population mean of 95% confidence interval from the sample data
drawn from the normal distribution

𝑋: 10 20 30

𝑓: 6 10 4

8. Below the values obtained from a random sample of 4 observations taken

from an infinite population 32,34,35,39
i. Find the point estimate for 𝜇 is this an unbiased estimate of 𝜇 explain.
ii. Find the point estimate for 𝜎 2 is this an unbiased estimate of 𝜎 2 explain.
iii. Find the point estimate for 𝜎.
iv. What can be said about the sampling distribution of mean, be sure to discuss the
expected value of SD and the shape of the sampling distribution of mean.

9. 20% of the population of a town is supposed to be 95% of confidence level.

What should be the sample size so that the sampling error is not more than 5%
above or below the group proportion of the rice eaters.

10. The Manager of a shop selling beverages wants to estimate the actual amount
of beverages in one litre bottle from a nationally known manufacturer. As per
manufacturer’s specifications, the S.D. of the volume of the beverage is 0.02
litres. The average amount of beverage per 1 litre bottle is found to be 0.995
liter on checking 50 bottles. Set up 99% confidence interval, estimate the true
population average amount of beverage in a 1 litre bottle. Check whether the
manufacturer is genuine in filling the beverage.
 UNIT III
TESTING OF HYPOTHESIS -PARAMETRIC TESTS
PART-A
1. Define null hypothesis and alternative hypothesis with example?
2. What are the type1 and type 2 errors?
3. Distinguish between one tail and two tail tests?
4. Define degrees of freedom.
5. Define the level of significance
6. What is the role of standard error?
7. Write the properties of t-distribution in tests of hypothesis?
8. Write the uses of chi-square test?
9. Mention any two assumptions made in analysis of variance techniques?
10. Distinguish between a parametric and non-parametric test.

PART-B
1. A sample of 10 boys had the I.Q’s: 70, 120, 110, 101, 88, 83, 95, 98, 100 and 107.
Test whether the population mean I.Q may be 100.
2. The height of six randomly chosen sailors are (in inches): 63, 65, 68, 69, 71 and 72.
Those of 10 randomly chosen soldiers are 61, 62, 65, 66, 69, 69, 70, 71, 72 and 73.
Discuss, the height that these data thrown on the suggestion that sailors are on the
average taller than soldiers.
3. Two independent samples of sizes 9 and 7 from a normal population had the
following values of the variables
Sample I: 18 13 12 15 12 14 16 14 15
Sample II: 16 19 13 16 18 13 15
Do the estimates of population variance differ significantly at 5% level of
significance?
4. A mathematics test was given to 25 girls and 20 boys. The girls made an average
grade of 76 with a SD of 6, while boys made an average grade of 82 with a SD of 2.
Test whether there is any significant difference between the performance of boys and
girls.
5. The sales manager of a large company conducted a sample survey in two places A
and B taking 200 samples in each case. The results were the following table. Test
whether the average sales is the same in the 2 areas at 5% level.
Place A Place B
Average Sales Rs. 2,000 Rs. 1,700
 S.D Rs. 200 Rs. 450
6. A Manufacturer of light bulbs claims that an average of 2% of the bulbs
manufactured by him are defective. A random sample of 400 bulbs contained 13
defective bulbs. On the basis of the sample, can you support the manufacturer’s claim
at 5% level of significance?
7. In a random sample of 100 men taken from village A, 60 were found to be consuming
alcohol. In another sample of 200 men taken from village B, 100 were found to be
consuming alcohol. Do the two villages differ significantly in respect of the
proportion of men who consume alcohol?

8. The following data represent the number of units of production per day turned out by
5 different workers using 4 different types of machines. (A/M 2011),(M/J 2013)

Machine Type
A B C D
1 44 38 47 36
2 46 40 52 43
Workers 3 34 36 44 32
4 43 38 46 33
5 38 42 49 39

a. Test whether the mean production is the same for the different machine types.
b. Test whether the 5 men differ with mean productivity.
9. What is a hypothesis? Discuss the formulation of hypothesis and testing the same.
10. The following are the number of mistakes made in 5 successive days by 4
technicians working for a photographic laboratory test at a level of significance
 = 0.01 . Test whether the difference among the four sample means can be
attributed to chance.

Technician

I II III IV

6 14 10 9

14 9 12 12

10 12 7 8

8 10 15 10

11 14 11 11
 UNIT IV
NON-PARAMETRIC TESTS
PART-A
1. What are the uses of Run test
2. Mention the advantages of non-parametric tests?
3. List the non parametric tests.
4. What is the null hypothesis framed in Mann Whitney test?
5. What is Yates's correction
6. Explain sign test?
7. Define one sample run test?
8. When is Kruskal-Wallis test used?
9. Write the importance of Kolmogrov-Smirnov test
10. What are the uses of chi-square distribution?
PART-B
1. The following data represents the operating time hours for three types of scientific
calculator before a recharge is required use the Kruskal-Wallis test at the l% Level of
significance to test hypothesis that the operating time for all three calculations are
equal.
A B C
4.94 5.5 6.4
6.1 5.4 6.8
4.3 6.2 5.6
4.6 5.8 6.5
5.3 5.5 6.3
5.2 6.6
4.8
2. Use Mann Whitney U-test to determine whether there is a different at
the 5% level of significance between cables made of Alloy I and Alloy
II.
Alloy I Alloy II
18.3 16.4 22.7 17.8 12.6 14.1 20.5 10.7 15.9
18.9 25.3 16.1 24.2 19.6 12.9 15.2 11.8 14.7
3. Two scientists are studied over 7 years for number of inventions each year. Use the
sign test to find out who is a more productive scientist.
Scientist A: 5,10 15,11,13,17,12
Scientist B:10,11,11,12,9,10,11

4. Write the application of non-parametric test and discuss the run test for randomness in
 statistics?
5. Explain rank sum test and its applications?
6. Distinguish non-parametric methods over parametric methods?
7. Explain the Kruskal Wallis test procedure with appropriate example?
8. Explain the steps involved in Kolmogrov Smirnov test procedure with
appropriate example?
9. 4 coins were tossed 160 times and the following results were obtained.Test the
goodness of fit
No of Heads Obtained : 0 1 2 3 4
Observed frequency : 17 52 54 31 6
10. Test the association of age and preference of colour of toy from the
followingdata
Age /colour Below 5 6-10 Above 10 years
Pink 60 40 5
Purple 30 30 30
Red 80 10 10
 UNIT V
CORRELATION AND REGRESSION
PART-A
1. Mention the properties of linear coefficient of correlation?
2. Define rank correlation co-efficient
3. Write down the formula for regression coefficients.
4. What is co-efficient of determination?
5. What do you mean by standard error of estimate?
6. List the properties of regression coefficients.
7. What are the types of correlation?
8. What are the lines of regression?Explain.
9. Find the mean values of the variables X and Y from the following regression
equations
2𝑌 − 𝑋 = 50
3𝑌 − 2𝑋 = 10

10. Write the formula for Estimation of Least Squares regression line and standard error
of an estimate.

PART-B

1. Ten competitors in a beauty contest are ranked by 3 judges in the following

order.
A: 1 6 5 3 10 2 4 9 7 8
B: 3 5 8 4 7 10 2 1 6 9
C: 6 4 9 8 1 2 3 10 5 7
Find out which pair of judges has awarded the ranks to the nearest common
taste of beauty?
2. Find out two regression equations from the following:

X 27 27 27 28 28 28 29 29 30 31

Y 18 18 19 20 21 21 22 23 24 25

3. Find the Standard error of the estimate of y on x and x on y from the following
X: 1 2 3 4 4
Y: 2 5 9 13 14
4. A coffee shop owner believes that the sales of coffee dependent on the weather. He
 has been taken the sample of 6 days, the results of the sample are given below
Cup of Coffee sold: 350 200 210 100 60 40
Temperature : 50 60 70 80 90 100
i. Which variable is the dependent variable?
ii. Compute the least squares estimated line
iii. Compute the correlation coefficient and coefficient of determination.
iv. Predict sales of 900 degree day.
5. Explain the concept of Regression and point out its usefulness in dealing with
business problems.
6. Distinguish between Correlation and Regression. Can Correlation coefficient be
computed out of regression coefficients.
7. The following data relate to marketing expenditure in lakhs of rupees and the
corresponding sales of a product in crores of rupees. Estimate the marketing
expenditure to attain a sales target of Rs.40 crores.
Marketing 10 12 15 20 23
expenditure

Product 14 17 23 21 25
sales

8. Out of the two lines of regression given by 𝑥 + 2𝑦 − 5 = 0 and 2𝑥 + 3𝑦 − 8 = 0,

which one is the regression line of 𝑋 on 𝑌? Use the equations to find the means of X
and Y. If the variance of 𝑋 is 12, find the variance of 𝑌.
9. In a partially destroyed record, for the examination of the two lines of regression the
following results are available
Coefficient of regression of Y on X=-1.6
Coefficient of regression of X on Y=-0.4
Standard Error of the Estimate of Y on X = 3. Find
i. Coefficient of regression of X and Y
ii. Standard deviation of
iii. Standard Error of the estimate of X on Y
10. Explain the concept of coefficient of determination and Method of Least Squares