Institute of Management Technology

Centre for Distance Learning

Ghaziabad

End-Term Examinations December 2012

Subject Code : IMT-24
Subject Name: Quantitative Techniques
Notes:

Time Allowed : 3 Hours

Max. Marks : 70

(a) Answer any FOUR questions from SECTION-A and CASE STUDY as given in SECTION-B.
Each Question (SECTION-A) carries 14 MARKS and (SECTION-B) Case Study carries 14 MARKS.
(b) No doubts/clarifications shall be entertained. In case of doubts/clarifications, make reasonable assumptions and proceed.
(c) Use graph paper.

SECTION-A
Q1.

Q2.

MARKS : 56

Monthly Profits earned by 100 companies during the last financial year are given below:
Monthly Profits (Rs Lakhs)

No. of Companies

Monthly Profits (Rs Lakhs)

No. of Companies

20-30

60-70

15

30-40

70-80

10

40-50

18

80-90

50-60

30

90-100

a.

Obtain less than and more than cumulative frequencies and draw ogives for each.

b.

How many companies earned more than Rs 50 lakhs as monthly profits during the last year?

c.

How many companies earned less than Rs 70 lakhs as monthly profits during the last year?

d.

Construct a Histogram & a Frequency Polygon for the above data.

(a)

What do measures of central tendency & measures of Dispersion indicate?

The average marks of 20, 18, 15 &10 students at the four centres of IMT i.e. Delhi, Hyderabad,
Nagpur & Dubai are 67,63,74,70. Find the combined average marks i.e. average marks of all the
students of IMT.

(b)

Distinguish between Absolute measure of Dispersion i.e. standard deviation & relative measure of
Dispersion i.e. co-efficient of variation & state the one which is more useful in business.

The data for two firms, A & B, belonging to the same industry, shows the following details:

No. of employees
Average Monthly Wages (Rs)
Standard Deviation (Rs)

Firm A

Firm B

100

200

4,500

5,000

420

550

a.

Which firm pays out larger amount of wages?

b.

Which firm shows greater variability i.e. less consistency in the distribution of wages?

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Q3.

(a)

What do you understand by the term probability? State:

(i) Addition theorem of probability for mutually exclusive events & for not mutually exclusive event.
(ii) Multiplication theorem of probability for independent events & dependent events.

Q4.

(b)

In a factory, machine A produces 40% of output & machine B produces 60% of output.2% of machine
As output &5% of machine Bs output is defective. In a day the two machines produce 1,000 items.
An item drawn from days output is defective. State the Bays Theorem & estimate the probability that
it was produced (i) by machine a (ii) by machine B.

(a)

Define Binomial Distribution. What are its parameters .Do you think these parameters can be used to
determine the Mean & Standard deviation of a Binomial Distribution.

(b)

A binomial Distribution has n=15, p=0.6.Calculate the mean & standard Deviation of the distribution.

(c)

1000 light bulbs with a mean life of 120 days are installed in a new factory & their length of life is
normally distributed with a standard deviation of 30 days. How many bulbs will expire in less than 85
days?

[Area between Z =0 & Z=1.17=0.3790]

Q5.

(a)

What do you mean by Time series? What are different components of a Time series? Explain the
object of smoothing and the techniques used for smoothing.

(b)

Shown here are shipments (in millions of dollars) for electric lighting and wiring equipment over a 12month period. Use these data to compute: (i) 4-month moving average for all available months. (ii)
Give the error of forecast.
Months

Q6.

Shipments

January

1,056

February

1,345

March

1,381

April

1,191

May

1,259

June

1,361

July

1,110

August

1,334

September

1,416

October

1,282

November

1,341

December

1,382

Write short notes on any 2 of the following:

(a)

The difference between primary & secondary data & the precautions to be kept in mind while
designing a questionnaire.

(b)

The null & alternate hypothesis &the various steps involved in testing of statistical hypothesis.

(c)

One Tailed & two tailed test & the decision rule for two tailed test of large samples at 5% level of
significance.

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Q7.

The following data relates to the scores obtained by 10 salesmen of a company in an intelligence test &
their weekly sales (in Rs 000)
Salesmen

Test Scores:

18

20

21

22

27

27

28

29

29

29

Weekly Sales :

23

27

29

28

28

31

35

30

36

33

(i)

Calculate the constants a & b.

(ii)

Obtain the regression equation of sales on intelligence test scores & describe the relationship
between intelligence test scores & Weekly Sales of the salesmen.

(iii)

If the intelligence test score of a salesman is 26, what would be his expected sales?

SECTION-B

MARKS : 14

Case Study
A company is interested in determining whether an association exists between the commuting time of their
employees & the stress related problems observed on the job. A study of 116 assembly-line workers reveals the
following.
STRESS
Commuting Time

High

Medium

Low

Total

Under 20min

18

20 to 50 min

17

28

53

Over 50 min

18

31

Total

44

19

53

116

At .05 level of significance is there any evidence of a significant relationship between commuting time & Stress.

Chi Square (4, .05) =9.4877

Chi Square (4, .o1)=13.2767
Chi Square (6, .05) =12.5916
Chi Square (9, .05)=16.9190

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