QM Oct 2004

Question Paper
Quantitative Methods (MB151) : October 2004

Answer all questions.

Marks are indicated against each question.
1. If the first term of an A.P. is a, second term is b and the last term is c, then the sum of all the terms of the series
is
(a + c)(b + c + 2a )
2(b + a)
(a)
(a + c)(2a b + c)
2(b a)
(d)
(a + c)(b + c 2a)
2(b a)
(b)
< Answer >
(a c)(b + c 2a)
2(b a)
(c)
(e) Zero.
(1 mark)
2. The ratio between the sum of n terms of two A.P.s is (3n + 8) : (7n + 15). Find the ratio between their twelfth
terms.
(a) 6 : 17
(b) 7 : 15
(c) 8 : 17
(d) 7 : 16
< Answer >
(e) 9 : 19.
(2 marks)
< Answer >
3. 1
1
1
x + y z = 1
2
3
3
1
1
1
x+ y z=4
3
2
6
1
5
1
x y + z =3
6
6
2
The value of x in the above simultaneous equations would be
(a) 3
(b) 6
(c) 9
(d) 12
(e) 24.
(1 mark)
4.
mp
nq ,
x=
y=
< Answer >
n (q 1)
q
m3
and z = m
(2-p) p
n2
The value of xyz would be

q
(a)
m
n
m
p
(b)
(c)
n
m
m
n
(d)
n
(e) m .
(1 mark)
5. Mr. Khan has 7 relatives, 4 of them are ladies and 3 gentlemen. His wife has 7 relatives, 3 of them are ladies and
4 gentlemen. In how many ways can they invite a dinner party of three ladies and three gentlemen so that there
are 3 of Mr. Khans relatives and 3 of his wifes relatives?
(a) 16
(b) 144
(c) 324
(d) 468
< Answer >
(e) 485.
(1 mark)
6.
1
1
1
1
log n 1 + log n 1 + log n 1 + ...... + log n 1 =
2
3
4
n
< Answer >
(a) 1/2
(b) 1/2
(c) 1
(d) 1
(e) 2.
(1 mark)
7.
x = q ( mn )
< Answer >
; If m = 2, n = 3, p = 2, and q = 3
The value of x would be

(a) 2
(b) 3
(c) 4
(d) 8
(e) 9.
(1 mark)
8.
If Cr-1 = 36, Cr = 84 and

(a) 3
(b) 5
n
Cr+1 = 126 . The value of r is

(c) 7
< Answer >
(d) 9
(e) 10.
(1 mark)
9. A guard of 12 persons is to be formed from a group of n soldiers in all possible ways. If the number of times two
particular soldiers are working together is 3m and the number of times three particular soldiers are working
together is m, the value of n is
(a) 30
(b) 32
(c) 34
(d) 35
< Answer >
(e) 36.
(1 mark)
10. If log 3 2, log 3 (2 x - 5) and log 3 (2 x - 7/2) are in arithmetic progression, the value of
x would be
(a) 10
(b) 8
(c) 6
(d) 4
(e) 3.
< Answer >
(1 mark)
11.
4n
P3 = 28
If
(a) 5
2n
P2
) , then n =
(b) 4
< Answer >
(c) 3
(d) 2
(e) 1.
(1 mark)
12.
< Answer >
x 2 + x
log 3 log 6
= 0,
x
1
then x =
If
(a) 0
(b) 1
(c) 3
(d) 4
(e) 5.
(1 mark)
13.
< Answer >
3-x -1, for -1 x<0
Let f (x) = 2 , for 0 x<3

x
-2
2 x -11, for 3 x 6
The value of f (4) is
(a)
80
81
(b)
82
81
(c) 7
(d) 5
(e) 19.
(1 mark)
14. Mountain States Oil Company refines crude oil into gasoline, jet fuel, and heating oil. The company can process
a maximum of 10,000 barrels per day at its refinery. The refining process is such that a maximum of 7,000
barrels of gasoline can be proAduced per day. Furthermore, there is always at least as much jet fuel as gasoline
produced. The wholesale prices of gasoline, jet fuel, and heating oil are Rs. 2500, Rs. 2000, and Rs. 1500 per
barrel, respectively. The company is interested in maximizing revenue. At the optimal solution, at what rate
< Answer >
should the company produce and sell gasoline?

(a) 3000 barrels per day
(c) 4000 barrels per day
(e) 5000 barrels per day.
(b) 3500 barrels per day

(d) 4500 barrels per day
(2 marks)
15. In a linear programming problem the feasible region is bounded by the following system of inequalities:
< Answer >
2x + y 12,
x + 3y 21,
x, y 0.
Suppose the objective function is defined as P = 6x + 8y. The maximum value for P, subject to the constraints of
the region of feasibility, would be
(a) 36
(b) 46
(c) 56
(d) 66
(e) 76.
(1 mark)
16. Jayanti Paints manufactures two varieties of dye Kalindi and Dark Rose. The production of both the varieties
primarily depends on the usage of three chemicals A, B and C. Currently, the report of the companys central
stores states that 24 litres of A, 16 litres of B and 40 litres of C are available. To produce 1 litres of Kalindi,
around 6 litres of A, 2 litres of B and 8 litres of C will be required. On the other hand, to produce 1 litres of Dark
Rose one needs to apply 3 litres of A, 4 litres of B and 8 litres of C. The company earns a profit of Rs. 12000
from a litre of Kalindi and Rs. 8000 from a litre of Dark Rose. The company is interested to maximize its profit.
At the optimal solution of the problem, how many litres of Dark Rose does the company need to produce?
(a) 100 litres
(b) 200 litres
(c) 300 litres
(d) 400 litres
< Answer >
(e) 500 litres.

(2 marks)
< Answer >
17. The following distribution shows the distribution of wages of 500 workers in a factory:
Weekly wages (in Rs.)
Number of workers
Below 300
60
300 - 350
110
350 - 400
160
400 - 450
90
450 - 500
46
500 - 550
24
550 - 600
10
What is the median wage earned by the workers in the factory? (Select the nearest figure)
(a) Rs. 325.70
(b) Rs. 350.25
(c) Rs. 374.84
(d) Rs. 395.30
(e) Rs. 412.50.
(2 marks)
18. A group consists of 150 children. The group is divided into three subgroups viz., A, B and C, in the ratio of
2:5:3 respectively. The average age of the children in the subgroup A is 8 years. The average age of the children
in the subgroup B is 10 years. The average age of the children in the subgroup C is 12 years. What is the average
age of all the 150 children in the group?
(a) 8.5 years
(b) 9.3 years
(c) 10.2 years
(d) 10.9 years
< Answer >
(e) 11.5 years.

(2 marks)
19. In a certain pleasure trip, you have crossed 900 kilometers by train at a speed of 60 km per hour, 3,000
kilometers by boat at a speed of 25 km per hour, 400 km by plane at a speed of 350 km per hour and lastly 15
km by taxi at a speed of 25 km per hour. What was the approximate average speed for the entire journey?
(Round off your answer)
(a) 30.00 km per hour
(d) 34.50 km per hour
(b) 31.50 km per hour

(e) 36.00 km per hour.
(c) 33.00 km per hour
< Answer >
(1 mark)
20. The mean salary in a certain plant was Rs.1500 and the standard deviation was Rs.400. A year later each
employee got increment by Rs.100. After two years the salary of each employee was increased by 20 percent.
The mean and standard deviation of the salaries will be:
(a)
(b)
(c)
(d)
(e)
< Answer >
Rs.1920 and Rs.480 respectively

Rs.1900 and Rs.416 respectively.
(1 mark)
21. The following details are available with regard to a data set: x = 33, x2 = 199, n = 6. If each observation in
the data set is multiplied by 2 then the standard deviation of the resulting values in the data set will be equal to
(a) (35/3)1/2
(b) 35/3
(c) 3
(d) 25
< Answer >
(e) 35.
(1 mark)
< Answer >
22. The analysis of a days production rejects resulted in the following figures:
No. of rejects per operator
21-25
26-30
31-35
36-40
41-45
46-50
51-55
No. of operators
15
28
42
15
12
The standard deviation of the number of rejects is

(a) 4.245
(b) 5.275
(c) 6.735
(d) 7.325
(e) 8.125.
(2 marks)
23. Three mangoes and five apples are placed in a box. If two fruits are chosen at random, the probability that one is
a mango and the other is an apple is
(a) 3/8
(b) 5/8
(c) 2/7
(d) 15/28
< Answer >
(e) 17/28.
(2 marks)
24. Two horses A and B run a race. If the probability of As win is twice that of B and there is no tie, then the
probability of Bs win is
(a) 1/6
(b) 1/5
(c) 1/4
(d) 1/3
< Answer >
(e) 1/2.
(1 mark)
25. If one ticket is drawn at random from a bag containing 20 tickets numbered 1 to 20, the probability that it is a
multiple of 5 or 7 is
(a) 1/10
(b) 3/10
(c) 7/20
(d) 3/5
< Answer >
(e) 1/20.
(1 mark)
26. A bag contains 6 red marbles and 10 green marbles. From the bag, 2 marbles are drawn without replacement.
The probability of drawing 1 red and 1 green marble would be
(a) 1/4
(b) 1/2
(c) 2/3
(d) 1/3
< Answer >
(e) 3/4.
(1 mark)
27. A consignment of 15 CD players contains 4 defectives. The CD players are selected at random, one by one and
then examined. Thereafter it was not returned back. What is the probability that the ninth one examined is the
last defective?
(a) 0.041
(b) 0.045
(c) 0.41
(d) 0.45
(e) 0.56.
< Answer >
(1 mark)
28. There are two groups of boxes. The first group contains three boxes each containing five yellow balls and two
red balls. The second group contains two boxes each containing one yellow ball and four red balls. A box is
selected at random out of the two groups of boxes and a ball is picked at random. If the ball that is picked is a
red ball then, what is the probability that the ball is picked from the first group of boxes?
2
86
(a) 21
(b) 5
(c) 25
(d) 175
< Answer >
15
(e) 43 .
(2 marks)
< Answer >
29. Three dies are thrown at a time. What is the probability of getting a sum total of 12?
15
(a) 216
17
(b) 216
19
(c) 216
23
(d) 216
25
(e) 216 .
(2 marks)
30. Plant A of a company employs 5 production and 3 maintenance engineers while plant B employs 4 production
and 5 maintenance engineers. Two engineers are selected randomly. What is the probability that one is a
production engineer and the other is a maintenance engineer?
(a) 0.35
(b) 0.40
(c) 0.45
(d) 0.50
< Answer >
(e) 0.55.
(1 mark)
31. If the probability that student A will pass a certain computer science exam is 0.7, the probability that student B
will pass the same exam is 0.6, and the probability that both students A and B will pass the exam is 0.5, what is
the probability that at least one of these two students will pass the examination?
(a) 0.2
(b) 0.5
(c) 0.6
(d) 0.7
< Answer >
(e) 0.8.
(2 marks)
32. Two cards are drawn from a well-shuffled ordinary deck of 52 cards. What is the probability that they are both
aces if the first card is replaced?
(a) 2/51
(b) 3/51
(c) 1/169
(d) 1/221
< Answer >
(e) 2/221.
(1 mark)
33. A die is loaded so that probability of face x is proportional to x. When the die is rolled the probability of x being
less than or equal to five would be
10
(a) 21
2
(b) 7
3
(c) 7
4
(d) 7
< Answer >
5
(e) 7 .
(1 mark)
34. Three candidates, A, B and C, are being considered by the board of directors of a company for the post of the
CEO. The probability that A will be appointed as the CEO is 0.20, the probability that B will be appointed is
0.30 and the probability that C will be appointed to the post is 0.50. If A is appointed as the CEO then the
probability of successfully launching a new product is 30%. If B is appointed as the CEO then the probability of
successfully launching a new product is 50% and if C is appointed then the probability of successfully launching
a new product is 60%.
What is the probability that a new product will be successfully launched?
(a) 6%
(b) 15%
(c) 30%
(d) 51%
(e) 60%.
(1 mark)
< Answer >
35. The pollution control department in a city is studying the number of chest disease cases due to air pollution, that
have taken place over the last six years. The following data are collected from their records:
Year
2003
2002
2001
2000
1999
1998
Chest disease
205
185
195
165
175
155
< Answer >
The estimate of number of chest disease cases for the year 2004 will be:
(a) 185
(b) 195
(c) 201
(d) 211
(e) 345.
(2 marks)
36. Two variables, X and Y, are related by a regression equation such that X is the independent variable and Y is the
dependent variable. The following details are available:
Coefficient of correlation between X and Y
Standard deviation of X
Slope of regression equation
< Answer >
0.75
=
=
6
2.5
The standard deviation of variable Y is

(a) 20
(b) 12
(c) 6.4
(d) 32
(e) 64.
(1 mark)
37. The City Transport Company runs a fleet of buses for transportation of passengers within an Indian city. The
following data shows the number of passengers for various ticket prices:
Ticket price (Rs.)
Number of passengers
5
700
5.50
680
6.00
620
6.50
560
< Answer >
7.00
500
If X denotes the ticket price and Y denotes the number of passengers then which of the following is the correct
regression relationship that can be used to estimate the number of passengers from the ticket price?
= 104 104X
(a) Y
= 1,236 1,236X
(b) Y
= 1,236 104X
(c) Y
= 104 1,236X
(d) Y
= 1,236 + 104X.
(e) Y
(2 marks)
38. A simple regression relationship was developed between the variables X and Y, with X as the independent
variable. The estimated value of Y when X = 2, is 7.0; and the estimated value of Y when X = 8, is 11.8.
Y2 = 791.31
XY = 452.7
Y = 78.1
The standard error of estimate for the regression line is
(a) 1.1113
(b) 8.4572
< Answer >
n=8
(c) 7.8482
(d) 7.5123
(e) 6.5893.
(2 marks)
< Answer >
39. The following data pertain to three commodities:

Commodity
Rice
Wheat
Pulses
Price in 2004 (Rs./kg)

11.50
13.50
26
Price in 1994 (Rs./kg)

9.50
8.50
20
The base year is 1994. The unweighted aggregates price index for the year 2004 is approximately
(a) 115.62
(b) 125.45
(c) 134.21
(d) 250.55
(e) 410.00.
(1 mark)
40. The following data pertains to the consumption of materials by a bakery:
< Answer >
Inputs
Units
Flour
Eggs
Kilogram
Dozen
Milk
Sugar
Litres
Kilogram
Prices (in Rs.)

Year
1993
1996
15
30
8
14
6
10
Laspey
res
price
index
for the
year
1996,
with
Quantities Used
Year
1993
1996
500
700
100
70
17
16
200
50
120
70
the year 1993 as the base year, is

(a) 184.5
(b) 190.0
(c) 201.4
(d) 206.0
(e) 250.5.
(1 mark)
< Answer >
41. The following index values pertain to a year:
Fishers ideal price index =

Laspeyres price index
=
124.50
122.00
Paasches price index for the year is approximately

(a) 102.90
(b) 115.50
(c) 120.50
(d) 127.05
(e) 129.10.
(1 mark)
Pawan earned Rs.170,000 in the year 2004, when the Consumer Price Index was 250. If the base year is 1996,
42. what are his earnings in terms of year 1996 rupees?
(a) Rs.35,000
(b) Rs.25,000
(c) Rs.20,000
(d) Rs.15,000
< Answer >
(e) Rs 68,000.
(1 mark)
43. The manager of Excel Computer Spares is deliberating on the existing policy of ordering printer cartridges.
Presently 60 cartridges are ordered per month, but the firm runs out of stock one out of every five months. On
average, the firm sells 45 cartridges per month. It is assumed that the monthly demand for the cartridges is
normally distributed. The manager wants to order enough cartridges so that the probability of running out of
stock during any month is not more than 0.10.
< Answer >
What is the optimal number of cartridges that should be ordered per month by the firm?
(a) 45
(b) 60
(c) 68
(d) 18
(e) 90.
(2 marks)
44. The manager of the quality department for a tire manufacturing company wants to study the average tensile
strength of rubber used in making a certain brand of radial tire. The population is normally distributed and the
population standard deviation is known. She wants to test the null hypothesis that the mean tensile strength is
equal to 800 pounds per square inch against the alternative hypothesis that the mean tensile strength is more than
800 pounds per square inch. She has taken a sample of 25 observations and the test statistic is calculated to be
1.695. If the significance level is 0.05, then
(a)
(b)
(c)
(d)
(e)
< Answer >
The critical value is 1.645 and the null hypothesis is accepted

The critical value is 1.645 and the null hypothesis is rejected
The critical value is 1.711 and the null hypothesis is accepted
The critical value is 1.711 and the null hypothesis is rejected
The critical value is 1.282 and the null hypothesis is rejected.
(1 mark)
45. The following details are available with regard to a hypothesis test on a population mean:
< Answer >
H 0 : = 16
H1 : < 16
2 = 81
n = 36
The null hypothesis is rejected if x 13.5325 .
What is the probability of committing a type I error?
(a) 0.25
(b) 0.025
(c) 0.0025
(d) 0.05
(e) 0.005.
(1 mark)
< Answer >
46. The following information are available with regard to a sampling distribution of mean:
Population mean = 60
Sample size = 64
Probability that the sample mean is less than 55 = 0.0228
It is assumed that the Central Limit Theorem will be applicable.
What is the population variance?
(a) 6.25
(b) 64
(c) 20
(d) 400
(e) 3600.
(2 marks)
47. The following details are available with regard to a hypothesis test on difference between means of two
populations:
n1 = 64
< Answer >
x1 = 320
x 2 = 144
n2 = 36
The value of the test statistic is 0.354 and the standard error of difference between means is 2.825. The samples
collected from the two populations are independent. What is the difference between the means of the two
populations according to the null hypothesis? Round off your answer to the nearest integer.
(a) 0
(b) 1
(c) 2.825
(d) 2.825
(e) 2.
(1 mark)
< Answer >
48. The following details are available with regard to a hypothesis test on means of two populations:
H 0: 1 2 = 1
H 1: 1 2 1
1 = 256
2
n1 = 64
x 1 = 320
x 2 = 144
2 = 144
n2 = 36
The samples collected from the two populations are independent. If the significance level is 0.05 then
(a) The critical value is 1.96 and the null hypothesis is rejected
(b) The critical value is 1.96 and the null hypothesis is rejected
(c) The critical values are 1.96 and the null hypothesis is rejected
(d) The critical values are 1.96 and the null hypothesis is accepted
(e) The critical values are 1.645 and the null hypothesis is accepted.
2
(2 marks)
49. The standard deviation of the number of successes in a binomial distribution is 2 and the probability of success
on any trial is 1/3.
What is the probability of obtaining exactly ten successes?
< Answer >
(a) 0.0289
(b) 0.1157
(c) 0.3300
(d) 0.8843
(e) 0.9711.
(1 mark)
< Answer >
50. The following details are available with regard to a hypothesis test on population mean:
H 0: = 9
H : <9
1
n = 25
2 = 256
x = 3.60
Significance level = 0.05

The population is normally distributed. It is later known that the true population mean is 9.
Which of the following can be said with regard to the test?
(a) There is insufficient information for doing the test
(b) The t distribution should be used
(c) The test does not lead to either type I or type II error
(d) The test leads to a type I error
(e) The test leads to a type II error.
(2 marks)
51. A medical shop sells a variety of drugs and one of the drugs sold by the shop is Drug X. This drug has a short
shelf life and it is quite expensive. Each packet of Drug X costs Rs.300 and can be sold for Rs.400, The manager
of the shop has observed that the demand for this drug before its expiry has the following probability
distribution:
Demand level before expiry

(number of packets)
Probability
300
400
500
600
700
0.15
0.25
0.40
0.15
0.05
< Answer >
Any packet of this drug not sold before expiry has no value and has to rejected. It is assumed that the demand
for this drug will be one of the aforementioned values only.
How many packets of Drug X should be stocked by the shop?
(a) 300
(b) 400
(c) 500
(d) 600
(e) 700.
(1 mark)
< Answer >
52. Which of the following is the binary equivalent of the decimal number 57?
(a) 111000
(b) 101001
(c) 111001
(d) 100111
(e) 101010.
(1 mark)
< Answer >
53. How many different numbers can be formed by using six out of the nine digits 1, 2, 3, 4, 5, 6, 7, 8, 9?
(a) 54
(b) 84
(c) 15120
(d) 60480
(e) 181440.
(1 mark)
< Answer >
54. The sum of the 20 terms of the series 3, 5, 7, 9, 11. is
(a) 440
(b) 450
(c) 460
(d) 470
(e) 480.
(1 mark)
55. If a function is defined such as y = f(x) = 5x + 4, then the inverse function f1(x) can be denoted as
(a) (y 5)/4
(b) (y 4)/5
(c) 5y + 4
(d) 4y + 5
< Answer >
(e) 4x + 5.
(1 mark)
56. Which of the following is not correct about construction of bar charts?
< Answer >
(a)
(b)
(c)
(d)
(e)
All bars should rise from the same base line

The gaps between the bars should be uniform
The bars should be arranged from the left to right
Length of the bars should be proportional to the data represented
Width of the bars should be proportional to the data represented.
(1 mark)
57. Which of the following is used to represent data in the form of pictures, where the size of the picture is
proportional to the magnitude of the data?
(a) Bar chart

(d) Pie chart
(b) Line chart

(e) Scatter diagram.
< Answer >
(c) Pictogram
(1 mark)
< Answer >
58. Which of the following is not true about median?
(a)
(b)
(c)
(d)
(e)
Median is not strongly affected by the extreme values

It can be also be calculated from grouped data
It can also be calculated for qualitative data
It can not be computed for grouped data having open-ended classes
It involves a time consuming process for raw data as the data has to be arranged.
(1 mark)
59. For a given data set, the values of mode and median were found to be 50.25 and 65.50 respectively; then the
mean of the data set is approximately equal to
(a) 27.125
(b) 57.875
(c) 59.250
(d) 73.125
< Answer >
(e) 85.325.
(1 mark)
< Answer >
60. If the quartiles, Q1 = 52.0 and Q3 = 65.0, then the coefficient of quartile deviation is equal to
(a) 9.00
(b) 0.11
(c) 0.80
(d) 1.25
(e) 0.64.
(1 mark)
< Answer >
61. Which of the following is not true about mean absolute deviation?
(a)
(b)
(c)
(d)
(e)
It is obtained by calculating the absolute deviations of each observation from mean

It is a more comprehensive measure compared to range
It is conducive to further algebraic treatment
It cannot be computed for distributions with open end classes
It can also be computed for grouped or continuous frequency distribution.
(1 mark)
62. If the b coefficient for regression equation of Y on X is 0.75, and the b coefficient for regression equation of X on Y
is 1.05, then the coefficient of correlation for the given data set is
(a) 0.81
(b) 0.83
(c) 0.85
(d) 0.87
< Answer >
(e) 0.89.
(1 mark)
63. If the points in a scatter diagram show a very little spread and a tendency to rise from the left to the right along
the horizontal axis, then we can conclude that
(a)
(b)
(c)
(d)
(e)
There is perfectly positive correlation

There is perfectly negative correlation
There is no correlation
There is high degree of positive correlation
There is low degree of negative correlation.
(1 mark)
< Answer >
< Answer >
64. Which of the following is not correct about standard error of estimate?
(a) It measures the reliability of the estimating equation

(b) It is the measure of variation of the observed values around the regression line
(c) The smaller the value of the standard error of estimate, the farther are the observations from the regression
line
(d) The larger the value of the standard error of estimate, the farther are the observations from the regression
line
(e) If the value of the standard error of estimate is zero, then there is no variation of the observations from the
regression line.
(1 mark)
< Answer >
65. The value of the coefficient of correlation between two variables can take values in the range of
(a) 0 and 1
(b) 1 and 1
(c) 1 and 0
(d) 0 to
(e) to .
(1 mark)
< Answer >
66. The value index number measures the
(a)
(b)
(c)
(d)
(e)
Changes in prices of a basket of commodities from one period to another

Changes in quantities consumed of a basket of commodities over a period of time
Change in the total monetary value of a basket of commodities over a period of time
Change in the retail prices of various commodities
Change in the general price level in a country.
(1 mark)
67. Which of the following weighted price index numbers uses only the quantity measures for the current period as
weights?
(a) Laspeyres price index

(c) Fishers ideal price index
(e) Weighted aggregates index.
< Answer >
(b) Paasches price index

(d) Fixed weight aggregates price index
(1 mark)
68. A card is drawn from a pack of cards randomly. What is the probability that the card drawn is a King of Spade?
(a) 1/4
(b) 1/13
(c) 1/51
(d) 17/52
< Answer >
(e) 1/52.
(1 mark)
69. If A and B are non-mutually exclusive events such that P(A) = 0.25, P(B) = 0.40 and
P(A or B) is equal to
(a) 0.06
(b) 0.10
(c) 0.55
(d) 0.65
P(AB) = 0.10, then
< Answer >
(e) 0.80.
(1 mark)
< Answer >
70. Which of the following is true about binomial distribution?
(a)
(b)
(c)
(d)
(e)
It is a continuous distribution
The probability of the outcome of any trial varies over time
Each trial will have more than two possible outcomes
The outcomes of the trials are statistically independent of each other
It is always a symmetrical distribution.
(1 mark)
71. A fair coin is tossed five times. If getting head is defined as success, what is the probability of getting exactly
four successes in the five tosses?
(a) 0.25725
(b) 0.15625
(c) 0.31250
(d) 0.10325
(e) 0.03125.
< Answer >
(1 mark)
72. A market researcher wants to find out the buying behavior of the typical household during the weekends. He
divides the city into various localities such that each locality represents the city population in terms of age
group, gender and social status. Then he randomly selects five localities and surveys each household. Which of
the following sampling techniques best describes the method used by the researcher?
(a) Cluster sampling

(c) Stratified sampling
(e) Sequential sampling.
< Answer >
(b) Systematic sampling

(d) Convenience sampling
(1 mark)
< Answer >
73. Which of the following is not a type of random sampling?
(a) Simple random sampling

(c) Systematic sampling
(b) Stratified sampling

(d) Judgmental sampling
(e) Cluster sampling.

(1 mark)
< Answer >
74. A Type II error is said to be committed in a test of hypothesis when
(a)
(b)
(c)
(d)
(e)
The null hypothesis is true but rejected

The null hypothesis is true and accepted
The null hypothesis is false but accepted
The null hypothesis is false and rejected
The alternative hypothesis is true and accepted.
(1 mark)
75. The manager of a cyber caf says that the number of customers visiting on the weekdays follows a binomial
distribution. Which of the following techniques can be used to accept this hypothesis at a given level of
significance?
(a)
(b)
(c)
(d)
(e)
< Answer >
Test of significance of mean

Chi square test as a test of goodness of fit
Test of significance of difference between two means
Correlation analysis
Regression analysis.
(1 mark)
< Answer >
76. Which of the following is not true about decision tree analysis?
(a)
(b)
(c)
(d)
(e)
Decision tree is a diagrammatic representation of a decision process

It is an excellent tool for making financial or number based decisions
Alternative decisions and the implications of taking those decisions can be laid and evaluated
Decision tree cannot help in assessing the risk in making decisions concerning investment
Decision tree analysis can be used with the help of computer.
(1 mark)
77. If the objective function of a profit maximizing linear programming problem is parallel to an edge of the feasible
region, which is in the direction of the optimal movement of the objective function, then which of the following
statements is true?
(a)
(b)
(c)
(d)
(e)
There are multiple optimal solutions to the problem

The constraint equations have been formulated incorrectly
There cannot be any optimal solution to the problem
There is only one optimal solution to the problem
The problem cannot be solved graphically.
(1 mark)
< Answer >
< Answer >
78. Which of the following is not a requirement of a linear programming problem?
(a)
(b)
(c)
(d)
(e)
The problem must have a well defined single objective to achieve

There must be alternative courses of action, one of which will achieve the objective
The decision variables should be able to take any non-negative value
The objective and constraints must be linear functions of the decision variables
The resources need not be limited in supply.
(1 mark)
< Answer >
79. Consider the following formulation of a linear programming problem:
Maximize Z = 12x1 +15x2

Subject to :
x1 15
x2 10
x1 +x2 20
Which of the following is correct about the above problem?
(a)
(b)
(c)
(d)
(e)
The problem has infeasible solutions

The problem has multiple optimal solutions
The problem has no constraint
The problem has unbounded solution
The problem has a unique optimal solution.
(1 mark)
< Answer >
80. What is the reason that the value of chi-square statistic can never be negative?
(a)
(b)
(c)
(d)
(e)
The difference between the observed and expected frequencies is always positive
The differences between the observed and expected frequencies is always squared
The difference between the observed and expected frequencies is divided by expected frequency
The observed frequency can never be negative
The expected frequency can never be negative.
(1 mark)
81. Which of the following is true with regard to a given coefficient of correlation and its corresponding coefficient
of determination?
(a)
(b)
(c)
(d)
(e)
< Answer >
The coefficient of determination is always greater than or equal to zero

The coefficient of determination is always negative
The coefficient of determination is always zero
The coefficient of determination always has the same sign as the coefficient of correlation
The magnitude of the coefficient of determination is always greater than the coefficient of correlation.
(1 mark)
< Answer >
82. As the sample size increases
(a)
(b)
(c)
(d)
(e)
The variation of the sample mean from the population mean becomes larger
The variation of the sample mean from the population mean becomes smaller
The variance of the sample becomes less than the variance of the population
The standard deviation of the sample becomes less than the standard deviation of the population
The standard deviation of the sample comes close to zero.
(1 mark)
83 Which of the following is true when the slope of a regression line is negative?
(a)
The correlation coefficient between the dependent and independent variables is 1
< Answer >
(b)
(c)
(d)
(e)
The correlation coefficient between the dependent and independent variables, lies between 0 and 1
There is a negative correlation between the dependent and independent variables
The regression line is parallel to the horizontal axis
The regression line passes through the intersection of the horizontal and vertical axes.
(1 mark)
Suggested Answers
Quantitative Methods (MB151) : October 2004
1.
Answer : (b)
Reason : Given that T1= a and T2 = a + d = b d = b a
Tn = a + (n 1) d = c
<
TOP
>
ca ca
=
ba
n1= d
ca
c + b 2a
+1 =
b
a
b a .(i)
n=
(c + b 2 a )
(a + c)
..(using the relation (i))
Sn = (n / 2) [a + Tn] = 2(b a )
2.
Answer : (d)
Sm
(n / 2)[2a + (n 1)d ]
3n + 8
=
=
Reason : Given that Sn (n / 2)[2a + (n 1)d ] 7 n + 15
<
TOP
>
a + [(n 1) / 2]d
3n + 8
=
a
[(
n
1)
/
2]
d
7
n + 15 .(i)
Or, +
T12
a + 11d
=
+ 11d
T
a
We have to find 12
Choosing (n-1)/2 = 11 or n = 23 in relation (i), we get

T12
a + 11d
3 23 + 8
77
7
=
=
=
=
T12 a + 11d 7 23 + 15 176 16 .
3.
Answer : (b)
Reason :
<
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>
1
1
1
x + y z = 1..............(i )
2
3
3
1
1
1
x + y z = 4................(ii )
3
2
6
1
5
1
x y + z = 3...............(iii )
6
6
2
By doing (i ) + (ii ) + (iii ) we get
1 1 1
+ + x = (1 + 4+ 3)
2 3 6
Or ,
x=6
4.
Answer : (c)
Reason :
<
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>
p
q
xyz =
mp
nq
n (q-1)
q
m3
(2-p) p
mq
q
np
q-1
p
3
2-p
m q n p
mq
p 3 2-p
- +
q q
m q
q q-1 2
- -
p p
n p
=
m
n
(p-3-p+2)
q
(q-q+1-2)
p
-
m
-
5.
1
q
1
p
1
p
1
q
=q
n
m
Answer : (e)
Reason : There are four possibilities:
3 ladies from Mr. Khans side and 3 gentlemen from his wifes side: No. of ways in this case
<
TOP
>
= C 3 C 3 = 4 4 = 16
3 gentlemen from Mr. Khans side and 3 ladies from his wifes side: No. of ways in this case
4
= C3 C3 = 1 1 = 1
2 ladies and one gentleman from Mr. Khans side and one lady and 2 gentlemen from his
3
C 3 C ) ( 3 C 4 C ) = 6 3 3 6 = 324
2
1
1
2
wifes side: No. of ways in this case =
One lady and 2 gentlemen from Mr. Khans side and 2 ladies and one gentleman from his
wifes
side:
No.
of
ways
in
this
case
=
( 4 C1 3C2 ) ( 3C2 4 C1 ) = 4 3 3 4 =144
So, total no. of ways = (16 + 1 + 324 + 144) or 485

6.
Answer : (d)
Reason : The given expression can be rewritten as,
<
TOP
>
1
2
3
n 1
+ log n + log n + ....... + log n
2
3
4
n
n 1
1 2 3
= log n .......
2
3
4
n
log n
1
= log n = log n n 1
n
= log n n = 1
7.
<
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>
Answer : (c)
Reason :
x = q ( m n ) when m=2, n=3, p=2, and q=3
p
8.
(2 )
3 2
32
= 2 3
Answer : (a)
2
= 2 = 4
<
TOP
>
Reason :
n
C r-1 = 36, n C r = 84 and n C r+1 = 126

n
So,
Cr
C r-1
84 7
= Or, 3 n C r = 7 n C r-1
36 3
n!
n!
= 7
Or, 3 (n-r+1) = 7 r
r!(n-r)!
(r-1)!(n-r+1)!
Or, 10r - 3n = 3 ............................(i)
Or, 3
Again
C r+1
Cr
126
84
n!
n!
= 126
Or, 84(n-r) = 126(r+1)
(r+1)!(n-r-1)!
r!(n-r)!
Or, 84n - 84r = 126r + 126 Or, 84n - 210r = 126
Or, 84
Or, 14n - 35r = 21

Or, 2n - 5r = 3 ........................(ii)
By 2 (i) +3 (ii) we get
20r - 15r = 9 + 6
10r = 15 Or, r = 3
9.
Answer : (b)
Reason : When two particular persons are together, the remaining 10 soldiers are to be selected from
(n-2)
<
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>
(n-2)
C10 ways. So, 3 m =

C10
(n2) in
When three particular persons are together, the remaining 9 soldiers are to be selected from
(n-3)
(n3) in
So,
(n-2)
C10 = 3
(n-3)
C9 ways. So, m =
(n-3)
C9
C9
(n-2)!
(n-3)!
= 3
10!(n-12)!
9!(n-12)!
Or, n-2 = 3 10 = 30
Or,
Or, n = 32
10. Answer : (e)

Reason :
<
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>
If log 3 2, log 3 (2 x -5) and log 3 (2 x -7/2) are in arithmetic progression

Then 2log 3 (2 x -5) = log 3 2 + log 3 (2x -7/2)
Or, 2log 3 (2 x -5) = log 3 2(2 x -7/2) = log 3 (2 x+1 7)
Or, (2 x -5) 2 = (2x+1 7)
Or, 22x 10.2 x + 25 = 2 x+1 7
Let 2 x = k
Or, k 2 10k + 25 = 2k - 7
Or, k 2 12k + 32 = 0
Or, k 2 8k 4k + 32 = 0
Or, k(k-8) - 4(k-8) = 0
Or, (k-4)(k-8) = 0
Or, 2 x = 4 or 8 = 22 or 23
So, x = 2 or 3
11. Answer : (d)

Reason : Given that
4n
P3 = 28. 2 n P2
<
TOP
>
(4n)!
28.(2n)!
=
or, (4n 3)! (2n 2)!
or,
or,
or,
or,
(4n)(4n 1)(4n 2) = 28. (2n) (2n 1)

8n (4n 1)(2n 1) = 28 (2n) (2n 1)
(4n 1) = 7
n = 2.
12. Answer : (c)

Reason : According to the given equation, we can say that
<
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>
x2 + x
0
log 6
= 3 =1
1
x
[If log a m = x, then m = a x ]

x2 + x
= 61 = 6
x 1
or , x 2 + x = 6( x 1)
or , x 2 5 x + 6 = 0
x = 2 or 3.
13. Answer : (d)

Reason :
3-x -1, for -1 x<0
Let f (x) = 2 , for 0 x<3

x -2
2 x -11, for 3 x 6
The value of f (4) = 24 -11 =16 -11= 5
<
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>
<
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>
14. Answer : (e)

Reason : Objective:
Maximizing revenue
Or Maximize: 2500 X1 + 2000 X2 + 1500 X3
Constraints:
X1 + X2 + X3 10000
X1 7000
X1 X2
Adding slack variables in constraints we get
X1 + X2 + X3 + S1 = 10000
X1 + S2 = 7000
X1 X2 + S3 = 0
The initial tableau would be as follows:
Tableau 1
Solution
10000
X1
1
X2
1
X3
1
S1
1
S2
0
S3
0
S2
7000
7000
1 = 7000
S3
0
1 =0
50
40
30
Variable
S1
10000
1 = 10000
Enter solution: X1
10000 7000 0
,
,
1 1 = S
Leave solution: Min 1
3
Tableau 2
Variable
S1
Solution
10000
X1
0
X2
2
X3
1
S1
1
S2
0
S3
1
S2
7000
X1
1
0
1
90
0
30
0
0
0
0
1
50
10000
2 = 5000
7000
1 = 7000
Not to be considered.
Enter solution: X2
10000 7000
,
1 = S
Leave solution: Min 2
1
Tableau 3
Variable
Solution
X1
X2
X3
S1
S2
S3
X2
5000
0.5
0.5
0.5
S2
2000
0.5
0.5
0.5
X1
5000
0.5
0.5
0.5
15
45
Since, all (Zi Ci) value are non-negative, the optimal solution is reached
X3 = Zero
X1 = 5000 barrels, X2 = 5000 barrels,
<
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>
15. Answer : (d)

Reason : The constraints are
2x + y 12 and the terminal line of feasibility is 2x + y = 12 .(i)

x + 3y 21 and the terminal line of feasibility is x + 3y = 21 .(ii)
Line (i) crosses x-axis at (6, 0) and line (ii) crosses x-axis at (21, 0). So the point which is part
of feasible region is (6, 0).
Line (i) crosses y-axis at (0, 12) and line (ii) crosses x-axis at (0, 7). So the point which is part
of feasible region is (0, 7).
Both line would intersect eachother at (3, 6).
So, the vertices are
(6, 0), (0, 7), and (3, 6).
The value of P at different vertices are
(6, 0): 6 6 = 36
(0, 7): 7 8 = 56
(3, 6): 3 6 + 6 8 = 66
As the value of P is maximum at (3, 6) so, optimum point is (3, 6) and maximum value of P is 66.
16. Answer : (b)
Reason : Let the company produces X 1 litres of Kalindi and X 2 litres of Dark Rose. In terms of 100
X1
X1
=x
100
100
times of 100 litres of Kalindi. Let
.
litres of package, the company produces
X2
X2
=y
Similarly, the company produces 100 times of 100 litres of Dark Rose. Let 100
.
Per 100 litres of Kalindi the company earns a profit of 100 120 = Rs.12000 and per 100
litres of Dark Rose the company earns a profit of 100 80 = Rs.8000 .
So, the objective function is
Maximize:
12000x + 8000y
Subject to
6x + 3y 24
2x + 4y 16
8x + 8y 40
Using slack variables the constraints would look like
6x + 3y + S1 = 24 ...(i) 2x + 4y + S2 = 16 .(ii) 8x + 8y + S3 = 40 .(iii)
So, the first tableau of the simplex method of this problem would look like
Tableau 1
Variable
Solution
x
y
S1
S2
S3
Ratio
S1
24
6
3
1
0
0
24
6 =4
S2
16
2
4
0
1
0
16
S3
40
12000
8000
2 =8
40
8 =5
<
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>
Variable to enter: x
Tableau 2
Variable
Solution
x
x
4
1
Variable to leave: S1
S2
0
S3
0
1
3
4
3
2000
0
Variable to leave: S3
y
1
2
S1
1
6
S2
S3
2000
Variable to enter: y
Tableau 3
Variable
Solution
x
x
3
1
y
0
S2
S1
1
3
2
3
1
3
4000
3
S2
0
1
0
0
Ratio
4
1
2=8
8
3 =2.67
8
4 =2
S3
Ratio
8
3
4
1
4
500
Since, all (Zi Ci) value are non-negative, the optimal solution is reached
S2 = 2,
S3 = Zero.
x = 3,
y = 2,
S1 = Zero,
As y = 2, at optimal point the company needs to produce 2 times of 100 litres of Dark Rose i.e. 200 litres
of Dark Rose.
<
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>
17. Answer : (c)

(N + 1) / 2 (F + 1)
Lm +
W
fm
Reason : Median =
500 + 1
N +1
2
The position of the median is the 2
item i.e.,
= 250.5th item.
th
Class
Frequency
Cumulative Frequency
Less than 300
60
60
300-350
110
170
350-400
160
330
400-450
90
420
450-500
46
466
500-550
24
490
550-600
10
500
550-600
10
500
Median class is 350-400.

N = 500 F = 170
Lm = 350
fm = 160
W = 50
501/ 2 (170 + 1)
50
160
Median = 350 +
= Rs.374.84
<
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>
18. Answer : (c)

Reason : Subgroup A : NA
2
150
2
5+3
+
=
= 30
x A = 8 years
Subgroup B : NB
5
150
= 2+5+3
= 75
x B = 10 years
Subgroup C : NC
3
150
= 2+5+3
= 45
x C = 12 years
( N A .x A ) + ( N B .x B ) + ( N C .x C )
NA + NB + NC
Average age of the entire group =

=
(30 8) + (75 10) + (45 12)

1530
30 + 75 + 45
= 150 = 10.20 years.
19. Answer : (b)

Reason : Here, you have traveled different distances at different speeds and hence the average speed
may found out by calculating the weighted harmonic mean of the given data in the following
way:
Speed (Km per hour) (v)
Distance (Kilometers) (s)
s/v
60
900
15.00
25
3,000
120.00
350
400
1.143
25
15
0.60
Total
4,315
137.13
S
S
V
i
i
Average speed may be calculated as:
<
TOP
>
4, 315
= 31.46 31.50 km p.h.
137.14
20. Answer : (a)

Reason : The mean is affected by the change in scale and origin. Hence, the mean salary will be =
(1500 + 100) 1.20 = 1920 while the standard deviation of salary is affected only by the
change in origin, not by the scale. So, the increment of Rs.100 will not affect the standard
deviation while the increment of 20 percent will increase it to Rs.480. Hence, the option (a) is
correct.
<
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>
<
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>
21. Answer : (a)

Reason : Original data set:
x = 33
x2 = 199
After modification:
x
x
N = 6
2 33
66
4 199
796
Standard deviation of the resulting data set =
796 66

6 6
796 6 662
36
x 2 x
N N
420
36 =
35
3
22. Answer : (c)

Reason : Converting the discrete data into the continuous data, we get the following table:
No. of rejects
Per operator
M.P.
(X)
No. of
Operators
(f)
(X-38)/5
(d)
fd
fd2
20.5 - 25.5
23
-3
-15
45
25.5 - 30.5
28
15
-2
-30
60
30.5 - 35.5
33
28
-1
-28
28
35.5 - 40.5
38
42
40.5 - 45.5
43
15
15
15
45.5 - 50.5
48
12
24
48
50.5 - 55.5
53
27
-25
223
Total
120
<
TOP
>
=
Standard deviation :
fd 2 fd
i
N
N
2
223 25
5
120 120
= 1.858 .043 5 = 1.347 5 = 6.735

23. Answer : (d)
8
Reason : Total number of ways two fruits can be picked from 8 fruits = n (S) =
C2
C1 5C1
The total number of ways one mango and one apple is picked is n(E) =
<
TOP
>
n( E ) 3 5 2 15
=
=
8 7
28 .
Therefore the probability of the favorable event = n( S )
<
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>
24. Answer : (d)

Reason : If the race is between A and B only and there is no tie, then P(A) + P(B) = 1.
Given that P(A) =2 P(B)
P(B) = 1/3
<
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>
25. Answer : (b)

20
Reason : Total number of ways the tickets can be drawn n(S) = C1 = 20

The numbers multiple of 5 or 7 in the given set are = {5, 10, 15, 20, 7, 14}
The total number of favorable event n(E) = 6.
6
3
=
The probability of favorable event = 20 10
26. Answer : (b)
Reason : The probability of drawing 1red and 1 green marble
P (1 red and 1 green) = (6C1 X 10C1)/16C2
= 1/2.
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>
27. Answer : (a)

Reason : Let A indicates the event that exactly 3 defectives after checking 8 CDs and B denotes that
the 9th piece has been examined and has been found defective. Therefore, by the classical
definition of probability we get,
<
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>
P( A) =
C3 11C5 56
15
C8 = 195
Now, P(B/A) = The probability that the 9th CD is a defective one provided that there were 3
4 3 1
=
defective CDs found in the examination of the first 8 CDs = 15 8 7 .
56 1 8
=
Hence, the required probability is given by: P(AB) = P(A) P(B/A) = 195 7 195
= 0.041 (approx.)
<
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>
28. Answer : (e)

Reason : Group 1 contains 3 boxes and group 2 contains two boxes
3
2
5
5
P(G2) =
P(G1) =
Probability of selecting a red ball from group 1 = P(R|G1) =
1 2 1 2 1 2
+ +
3 7 3 7 3 7
Probability of selecting a red ball from group 2 = P(R|G2)
1 4 1 4
+
2 5 2 5
2
7
4
5
=
3 2
P(G1 and R) = P(G1).P(R|G1) = 5 7
6
= 35
2 4
5
5
= P(G2).P(R|G2) =
8
25
=
P(G2 and R)
PI
P(G1|R)
6
8
+
35
25
=
= P(G1 and R) + P(G2 and R)

P(G1 and R)
6 / 35
=
P(R)
86 / 175
=
86
175
=
15
= 43
29. Answer : (e)

Reason : Here, the total number of outcomes is 6 6 6 = 216. A sum total of 12 may appear in the
following ways: (6,1,5); (6,2,4); (6,3,3); (5,2,5); (5,3,4); (4,4,4). The first two outcomes may
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3!
Ways = 6 ways each. The second two sets of numbers may appear in 2!1!
occur in 3!
ways = 3 ways each. While the fifth set of numbers may appear by 3! Ways = 6 ways and the
last one may come by only one ways. Hence, the total number of outcomes that are favorable
25
is 62 + 32 +6 + 1 = 25 ways. Hence, the required probability will be: 216 .
30. Answer : (e)
Reason : Let us denote the events as follows:
A1: Plant I is being selected while A2: Plant 2 is being selected
B: Selection of two persons where one is a production engineer and another is a maintenance
engineer.
Now, the required probability of selecting one production engineer and one maintenance
engineer is possible if either of the following two mutually events happens:
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(ii) A2B happens

(i) A1B happens,
Now, from the given situation, P(A1) = P(A2) = 0.5
P(B/A1) = Probability of selecting one production engineer and one maintenance engineer in a
selection of two engineers from the first plant.
5
C1 C1
3
Therefore, P(B/A1) =
4
C2
C1 C1
5
Similarly, P(B/A2) =
C2
5 3 2
8 7
5 4 2
8 9
15
28 .
5
9.
1 15 1 5
+
Therefore, the required probability will be = P(A1) P(B/A1) + P(A2) P(B/A2) = 2 28 2 9 =
275
504 =
0.5456 0.55 (approx.)
31. Answer : (e)

Reason : P (At least one student will pass) = P(A & B). Clearly,
P(A & B) = P(A) + P(B) P(A or B)
= 0.7 + 0.6 0.5 = 0.8
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32. Answer : (c)

Reason : Let E1 be the event ace on the first draw, and let E2 be the event ace on the second draw.
If first card is replaced, E1 and E2 are independent events. Thus
P{both cards drawn are aces} = P{ E1} P{ E2 } = (4/52)(4/52) = 1/169
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33. Answer : (e)

Reason : There are six faces in a die and they are named as 1, 2, 3, 4, 5 and 6. So, the corresponding
probability would be 1k, 2k, 3k, 4k, 5k and 6k respectively. Since one of the face must appear
1
21
the sum of all these probabilities should be one i.e. k+2k+3k+4k+5k+6k = 21k = 1 or k =
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5
15
7
The probability of less than or equal to five is 1k+2k+3k+4k+5k = 15k = 21 = .
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34. Answer : (d)

Reason : Let the following notations be used,
A :
A is appointed as CEO.
B :
B is appointed as CEO.
C :
C is appointed as CEO.
N :
New product is launched.
Given:
P (A)
=
0.20
P (B)
=
0.30
P (C)
=
0.50
P (N/A) =
30% = 0.30
P (N/B) =
50% = 0.50
P (N/C) =
60% = 0.60
P (N) = P (A and N) + P (B and N) + P (C and N)
= (0.20 0.30) + (0.30 0.50) + (0.50 0.60) = 0.51 i.e. 51%.
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35. Answer: (d)

Reason :
Let the following notations be used:
X = Year
Y = Number of diseases reported
x = Coded value for time variable (year)
xY
x2
205
1025
25
1.5 2 = 3
185
555
2001 2000.5
0.5 2 = 1
195
195
2000
2000 2000.5
0.5 2 = 1
165
-165
1999
1999 2000.5
1.5 2 = 3
175
-525
1998
1998 2000.5
2.5 2 = 5
155
-775
25
xY = 310
x2 = 70
X X
x = (X X ) 2
2003
2003 2000.5
2.5 2 = 5
2002
2002 2000.5
2001
= a + bx : b =
Y
Y = 1080
1
xy (x)(y )
n
b1 =
1
2
x ( x ) 2
n
b0 = y b1 x
Putting the values in the above equation we get

a = 180 and b =4.43
= 180 + 4.43x
The estimating equation is: Y
The estimate of 2004 accident = 180 + 4.43X(2004-2000.5) X2 = 211diseases
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36. Answer: (a)

Reason :
Cov ( X, Y )
2x
ression equation, b =
y
0.75 6
= 2.5
36
=
Or S.d of Y = 2.5 X 36/0.75*6 = 20
37. Answer: (c)

Reason :
a.
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Let the following notations be used:
Ticket price (Rs.)

: X
Passengers per 100 kms : Y
The regression relationship may be represented as:
=
Y
Where,
a + bX
nXY X Y
b
nX 2 (X) 2
Y bX
X =
30
3060
X =
n
=
182.50
5
XY
18,100
5 (18,100) (30) (3,060)

b =
a
Y
X
5 (182.50) (30) 2
Y bX
Y 3,060
n = 5 = 612
X 30
n = 5 =6
a =
612 (104) (6) = 1,236
= 104.
The regression relationship is
= 1,236 104X
Y
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38. Answer: (a)
= a + bX
Reason : Y
Given:
Or
Or
7 = a + b (2)
(For X=2)
7 = a + 2 b.(A)
11.8 = a + b (8) (For X=8)
11.8 = a + 8b.(B)
(11.8 7 )
(8 2 ) = 0.80
b =
Putting b = 0.80 in (A)
7 = a + 2 (0.80)
or a = 7 1.6 = 5.4
The regression equation is
= 5.4 + 0.80X
Y
Standard error of estimate; Se =
Se
Y 2 a Y b XY
n2
Y2 =
791.31
XY = 452.7
Y =
78.1
n=8
=
=
791.31 (5.4 78.1) (0.8 452.7)

82
1.1113
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39. Answer: (c)

p n
100
Reason : Unweighted aggregates price index = p 0
(11.50 + 13.50 + 26)
100
= (9.50 + 8.50 + 20)
= 134.21
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40. Answer: (d)
Reason : Laspeyres Price Index for the given data

30 500 + 14 100 + 17 200 + 16 50
15 500 + 8 100 + 6 200 + 10 50 x 100 i.e., 206.0.
is
P .Q
P .Q
1
100
i.e.,
Hence from above discussion, we can infer that option (d) is correct.
41. Answer : (d)
Reason : Fishers ideal price index =
Laspeyres price index Paasches price index
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Paasches price index
(Fisher 's ideal price index) 2

Laspeyres price index
=
(124.5)2
122 = 127.05
=
42. Answer : (e)
Reason : (170000/250)*100 =Rs. 68000
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43. Answer: (c)

Reason : Probability that the monthly demand for cartridges will exceed 60 (i.e., existing number of
1
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cartridges ordered per month) = 5 = 0.20

Average number of cartridges sold per month ( ) = 45
The monthly demand for the cartridges is normally distributed.
We can see that, P(45 < x < 60) = 0.30

From the standard normal table, we can find that the z value for a point lying to the right of
the mean, so that 0.30 of the area is covered between the mean and the point, is 0.84 (p =
0.2995 0.30).
x
z=
60 45
15
0.84 =
or = 0.84 = 17.86
Required: Probability that the demand will exceed the number of cartridges ordered in a month
= 0.10
Let the number of cartridges to be ordered be k.
We can see that, P(45 < x < k) = 0.40.

From the standard normal table, we can find that the z value corresponding to k = 1.28 (P = 0.3997
0.40).
z=
k 45
1.28 = 17.86
or k = 1.28 x 17.86 + 45
= 67.86 68.
68 cartridges should be ordered per month.
44. Answer : (b)
Reason : The population is normally distributed and the population standard deviation is known. So the
standard normal distribution should be used. The test is right tailed and the significance level
is 0.05. So the critical value for the test is 1.645. Since the test statistic is more than the
critical value it falls in the critical region and we reject the null hypothesis.
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45. Answer: (d)

Reason: Probability of committing a type I error = Probability of rejecting the null hypothesis when it
is true
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2
By the central limit theorem x is normally distributed with mean = and variance = n
Hence Probability of rejecting the null hypothesis when it is true =

P(x 13.5325) = P(z
= P(z
13.5325 16
2.94
81
36
2
n
) = P(z 1.645) = 0.05
46. Answer : (d)

Reason : By Central Limit Theorem for large samples the sample mean is approximately normally
=
distributed with mean = population mean and standard deviation
E (x)
60
0.0228
Now, P ( x < 55)
0.50 0.0228
P ( 55 < x < 60 ) =
From the tables we find that k = 2.0
z = 2 =
=
2.50
x
x
n =
2.50
or
0.4772 =
P(k < z < 0)
55 60
x
or
5
2
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64
or
or
=
=
2.50
(2.50)2 64
= 400.
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47. Answer: (a)

Reason:
(x
Value of the test statistic =
or
( 1 2 )
x 2 ( 1 2 )
x
x2
320 144
( 1 2 ) 1 ( )
64 36
1
2
=
=
= 0.354
2.825
2.825
= 1 ( 2.825 0.354 ) = 0.00005 0

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48. Answer: (d)

Reason:
H0: 1 2 = 1
H1: 1 2 1
It is a two-tailed test at a significance level of 0.05. Both the samples are large. Hence the
normal distribution should be used to approximate the sampling distribution of the difference
between sample means.
(x
) (
x 2 1 2
+
n1 n 2
2
1
2
2
320 144
) = 64 36 (1) =
256 144
+
64
36
1+1
= 0.7072
2.828
Value of the test statistic =

The critical values under the left and right tails obtained from the standard normal distribution are
1.96 . The observed value of the test statistic falls well within the acceptance region. So we accept the
null hypothesis.
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49. Answer : (a)

1
Reason : p = 3
1 2
=
q = 1 p = 1 3 3
Variance = npq
1 2
2

2
( ) = n 3 3
2
n
or 4 = 9
49
= 18
or n = 2
10
18
P(r = 10) =
50. Answer: (d)
1 2
C10 = 0.0289
3 3
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Reason:
H0 :
=
9
<
9
H1 :
The sample is small. However since the population is normally distributed and the population
variance is known
Hence we should use the normal distribution.
n =
256
25
>
= 3.20
x
x
3.60 9
3.20
z
=
=
=
1.688
At =
0.05, the critical value in the left tail is 1.645.
The test statistic is less than the left tail critical value. So it falls in the rejection region.
We reject H0. The true mean is 9. So H0 is true. So the test leads to a type I error.
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51. Answer : (b)

Reason : Conditional profit table for Drug X (in Rs.):
Stock
Demand
Expected
300
400
500
600
700
Profit
(0.15)
(0.25)
(0.40)
(0.20)
(0.10)
300
30,000
30,000
30,000
30,000
30,000
30,000
400
40,000
40,000
40,000
40,000
34,000
500
(30,000)
10,000
50,000
50,000
50,000
33,000
600
(60,000)
(20,000)
20,000
60,000
60,000
12,000
700
(90,000)
(50,000)
(10,000)
30,000
70,000
(17,000)
Since the expected conditional profit is maximum at a stock level of 400 packets the shop
52. Answer : (c)
Reason : The binary equivalent to the decimal number 57 is equal to 111001. This can be obtained by
dividing the number with 2 and taking the remainders in the reverse order. We can verify the
answer like this
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5
4
3
2
1
0
(111001)2 = 1 2 + 1 2 + 1 2 + 0 2 + 0 2 + 1 2 = 57
Therefore the correct answer is (c).
53. Answer : (d)

Reason : The total number of different numbers that can be formed by using six out of the nine digits
9!
9
p6 =
= 60480
(9 6)!
.
1,2,3,4,5,6,7,8,9 is =
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Therefore the correct answer is (d).

54. Answer : (a)
Reason : The given series is an arithmetic progression with first term as 3 and common difference as 2.
The sum of n terms of an arithmetic progression is
Sn= (n/2){2a+(n-1)d}
Sn = (20/2){23+(20-1)2}
= 440
Therefore the correct answer is (a).
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55. Answer : (b)

Reason : If the given function y = 5 x + 4 then, the inverse function f-1(x) = (y-4)/5.
Therefore the correct answer is (b).
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56. Answer : (e)

Reason : Width of the bar should be uniform as width is irrelevant in the bar charts. All other
statements are true for bar chart.
Therefore the correct answer is (e).
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57. Answer : (c)

Reason : Pictograms represents the data in the form of pictures. The data is presented using appropriate
pictures and the size indicates the magnitude of the data.
Therefore the correct answer is (c)
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58. Answer : (d)

Reason : The median can be computed for the data having open-ended classes unless the data falls in
the open-ended class. All other statements are true for median.
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59. Answer : (d)

Reason : We know that Mode = 3 Median 2 Mean.
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Therefore Mean = (1/2){3 Median Mode}= (1/2){3 65.50 50.25}= 73.125

Hence correct answer is (d).
60. Answer : (b)
Q3 Q1 65 52 13
=
= 0.11
Reason : Coefficient of quartile deviation = Q3 + Q1 = 65 + 52 117
Therefore the correct answer is (b)
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61. Answer : (c)

Reason : Mean deviation is not conducive to further algebraic treatment. All other statements are true.
Therefore the correct answer is (c)
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62. Answer : (e)
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Reason : We know that the coefficient of correlation r = (byx bxy )
1/2
= (0.75 1.05)1/2
= 0.8874 0.89
63. Answer : (d)
Reason : If the trend of the points in a scatter diagram show a very little spread and show a rising
tendency from bottom left hand corner to top right hand corner then we can conclude that
there is low degree of positive correlation.
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64. Answer : (c)

Reason : The smaller the value of the standard error of estimate, the closer are the observations to the
regression line. All other statement are true for the standard error of estimate.
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65. Answer : (b)

Reason : The coefficient of correlation can take values in the range of 1 to 1. Therefore the correct
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>
answer is (b).
66. Answer : (c)
Reason : The value index measures the change in the total monetary value over a period of time.
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67. Answer : (b)

Reason : Paasche price index uses the quantity measures for the current period as weights.
Therefore the correct answer is (b)
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68. Answer : (e)

Reason : There is only one card in the pack of card which is a king of spade. Therefore the required
probability is equal to P (King of spade) = 1/52.
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69. Answer : (c)

Reason : We know that for no-mutually exclusive events A and B,
P(A or B) = P(A) + P(B) P(A and B)
= 0.25 + 0.40 0.10 = 0.55
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70. Answer : (d)

Reason : The outcome of each trial in a binomial distribution is independent of each other. All other
statement are false for a binomial distribution.
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71. Answer : (b)

Reason : The probability of getting a head (success) in a fair coin is 0.5.
Now The probability of getting exactly four successes in five tosses is
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P(4) = c 4 (0.5) (0.5) = 0.15625

5
72. Answer : (a)

Reason : This is a typical example of cluster sampling. The whole population is divided into different
clusters each representing the population. Then a cluster is chosen randomly and it is
surveyed exhaustively.
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73. Answer : (d)

Reason : In judgmental sampling the sample is selected according to the judgment of the investigator.
Hence some subjectivity creeps into the sampling process and the truly random nature of the
sample is lost to some extent.
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74. Answer : (c)

Reason : A type II error is committed when the null hypothesis is false but accepted. Therefore the
correct answer is (c).
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75. Answer : (b)

Reason : To test the hypothesis that a given set of data follows a particular distribution, we use chi
square as a goodness of fit.
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>
76. Answer : (d)
<
TOP
Reason : Decision tree helps in assessing risk in decision concerning investment. All other statements
are true for decision tree analysis.
>
77. Answer : (a)

Reason : If the objective function of a profit maximizing linear programming problem is parallel to an
edge of the feasible region, which is in the direction of the optimal movement of the objective
function then there are multiple optimal solutions to the problem.
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78. Answer : (e)

Reason : The resources should be limited in supply in a linear programming problem. All other
statements are correct for Linear programming problem.
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79. Answer : (d)
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Reason : For the given L.P. problem , all the constraints are inequality. Hence the feasible region
will extend to infinity. This is a typical case of unbounded solution.
80. Answer : (b)
Reason : The chi square statistic is
= (Observed frequency - Expected frequency)2 / (Expected frequency).
Since the difference between the frequencies is squared the value of chi square statistic
always take positive value.
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81. Answer : (a)

Reason : The coefficient of determination is the square of the coefficient of regression. Therefore it
takes only positive values.
Therefore the correct answer is (a)
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82. Answer : (b)

Reason : a. As the sample size increases the variation of the sample mean from the population mean
becomes smaller.
b. From above we can see that (b) is incorrect.
c. It can not be said with certainty that as the sample size increases the variance of the
sample becomes less than the variance of the population.
d. It can not be said with certainty that as the sample size increases the standard deviation
of the sample becomes less than the standard deviation of the population.
e. It can not be said with certainty that as the sample size increases the standard deviation
of the sample comes close to zero.
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83. Answer : (c)

Reason : a.
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b.
c.
d.
e.
When the slope of a regression line is negative the correlation coefficient need
not be 1.
When the slope of a regression line is negative, there is a negative correlation between
the variables; hence the correlation coefficient lies between 1 and 0.
When the slope of a regression line is negative, there is a negative correlation between
the variables.
When the slope of a regression line is zero, the regression line will be parallel to the
horizontal axis.
When the y-intercept of a regression line is zero, the regression line passes through the
intersection of horizontal and vertical axes.

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Question Paper

Quantitative Methods (MB151) : October 2004

Answer all questions.

< Answer >

< Answer >

< Answer >

The value of xyz would be

< Answer >

< Answer >

< Answer >

The value of x would be

If Cr-1 = 36, Cr = 84 and

Cr+1 = 126 . The value of r is

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

3-x -1, for -1 x<0

Let f (x) = 2 , for 0 x<3

< Answer >

should the company produce and sell gasoline?

(b) 3500 barrels per day

< Answer >

(b) 200 litres

(c) 300 litres

(d) 400 litres

< Answer >

(e) 500 litres.

(b) 9.3 years

(c) 10.2 years

(d) 10.9 years

< Answer >

(e) 11.5 years.

(b) 31.50 km per hour

(c) 33.00 km per hour

< Answer >

< Answer >

Rs.1920 and Rs.480 respectively

< Answer >

The standard deviation of the number of rejects is

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

< Answer >

The standard deviation of variable Y is

< Answer >

< Answer >

39. The following data pertain to three commodities:

Price in 2004 (Rs./kg)

Price in 1994 (Rs./kg)

40. The following data pertains to the consumption of materials by a bakery: