You are on page 1of 4

Question 1

i.

A consumer electronics company wants to determine the job satisfaction


levels of its employees. For this, they ask a simple question: are you
satisfied with your job? It was estimated before the study that no more
than 30% of the employees would answer yes. What should be the
minimum sample size for the company to estimate population proportion
to ensure 95% confidence in result & to be within 0.04 of the true
population proportion?
5 Marks

ii.

Executive search firms specialize in helping corporations locate & secure


top level management talent. Called Headhunters, these firms are
responsible for the placement of many of the nations top CEOs. Business
Week recently reported that one out of every four CEOs is an outsideran executive with less than 5years at the company he runs. If in a sample
of 350 U.S. corporations, 77 have outsider CEOs, would a 99%
confidence interval support the quote? Interpret the confidence interval in
support of your answer.
3+2=5 Marks
Question 2

i.

In a monthly briefing to the corporate office, the manager for Hotel


Embassy in Mumbai reports that the average number of rooms rented out
per night is at least 212. One of the corporate officials feels that this
number might be somewhat overstated. A sample of 150 nights produces
an average of 201.3 rooms & standard deviation of 45.5 rooms. If these
results suggest the manager has padded his report, he will be severely
admonished. At level of significance of 1%, what is the managers fate?
5 Marks

ii.

A survey of the morning beverage market shows that the primary


breakfast beverage for 17% of Indians is milk. A milk producer in
Chandigarh, where milk production is plentiful, believes the figure is
higher for Chandigarh. To test this idea she contacts a random sample of
550 Chandigarh residents & asks which primary beverage they consumed
for breakfast that day. Suppose 115 replied that milk was the primary
beverage. Using a level of significance of 5%, test her belief.
5 Marks
Question 3
1

The sales for Westside, a chain of upscale clothing stores for women have
increased during the past 12 years as the chain has expanded the number of
stores. Until now, Westside managers selected sites based on subjective
factors, such as the availability of a good lease or the perception that a
location seemed ideal for an apparel store. As the new director of planning,
you need to develop a systematic approach that will lead to making better
decisions during the site selection process. As a starting point, you believe
that the size of the store significantly contributes to store sales, & you want
to use this relationship in the decision making process. How can you use
statistics so that you can forecast the annual sales of a proposed store
based on the size of that store? To examine the relationship between the
store size in square feet & its annual sales, data were collected from a
sample of 14 stores & given in the following table:
Store
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Square Feet
(Thousands)
1.7
1.6
2.8
5.6
1.3
2.2
1.3
1.1
3.2
1.5
5.2
4.6
5.8
3.0

Annual Sales (In


thousand Rs)
3.7
3.9
6.7
9.5
3.4
5.6
3.7
2.7
5.5
2.9
10.7
7.6
11.8
4.1

Regression was run on MS Excel and the partial result below was extracted
from the Excel result..
SUMMARY OUTPUT
Regression
Statistics
Multiple R
R Square
Adjusted R

0.9509
0.9042
0.8962
2

Square
Standard Error 0.9664
.
Observations 14
ANOVA
Regression
Residual
Total

Intercept
Square Feet

df
1
12
13

SS
105.7476
11.2067
116.9543

Coefficients

Standard
Error

T
Stat

0.9645
1.6699

0.5262
0.1569

1.8329 -0.1820
10.6411 1.3280

Lower
95%

Upper
95%
2.1110
2.0118

By using the results above & =0.05, develop a regression model to predict
sales that are estimated to vary according to the size of the store by
performing the following steps.
a. State the linear relationship between sales & store size by formulating
linear regression model & interpret the coefficients.
b. Obtain the coefficient of determination & interpret it.
c. Obtain the standard error of estimate & interpret it.
d. Comment on the t test for the slope of the regression line using
confidence interval
e. Predict sales when store size is 8000 square feet.
3+2+2+2+1=10 Marks

Question 4
For the past several years, business conditions for rainbow enterprises have
been rather black. The CEO has collected quarterly totals of the number of
employees who have been laid off over the past 4 years.
Time
Period

2009-I

2009-II 2009-III

2009-IV

2010-I

2010-II 2010-III

2010-IV

Layoffs 25

27

32

29

28

32

34

Time
2011-I
Period
Layoffs 35

2011-II

2011-III

2011-IV

2012-I

2012-II 2012-III

2012-IV

37

37

39

38

42

45

44

38

a. Use a four period moving average to remove seasonal variation


b. Calculate the seasonal indexes & interpret them in the present context.
c. CEO would like to forecast the number of layoffs for the 1st quarter of
2011. Use the trend line t = 24.88 + 1.206t to help him.
d. He also wants to determine seasonally adjusted layoffs for the period
2013-I. How can you help him to find this?
3+5+1+1=10 Marks
------------------------------------------------------------------------------------------------------

You might also like