Q2.

The Manufacturer of a particular brand of car claimed that the car gives a
mileage of 22 Kms. Per litre of petrol. A random sample or drivers gave the
following information in respect of mileage achieved during the first six months of
driving a new car.

Average ( X ) = 21.6 km and sample standard deviation of 1.2 km. Confirm the
claim through appropriate test of significance at 5% level of significance.

Ans.

Null hypothesis and Alternate hypothesis::

H0: μ = 22 vs. H1: μ ≠ 22.

Test Statistic z = (xbar - µ ) / (standard deviation / √ (n))

xbar = 21.6, µ = 22, standard deviation = 1.2, α = 0.05 (5% of significance),

The sample size is missing to calculate the test statistic and hence the claim cannot
be proved due to insufficient data.

Q7. Ten Observations made on the octane rating 0 gasoline gave the following
results: [10 marks]

98, 96, 97, 94, 93, 93

99, 90, 102, 95, 94, 88

(a) Obtain a point estimate of the population true mean rating

Ans.

A point estimate of a population parameter is a single value of a statistic.

The sample mean of the given values are = ∑x/n = 1139/12 = 94.91.

The point estimate of the population is 94.91.

(b) Establish 95 % confidence interval for the true mean rating.

Ans.

Sample mean = 94.91

Standard Deviation –

σ=Sq root of ((∑(X-X bar)2)/Size)

X-X
X bar (X-X bar)2
 98 3.09 9.54
96 1.09 1.18
97 2.09 4.37
94 -0.91 0.83
93 -1.91 3.65
93 -1.91 3.65
99 4.09 16.73
90 -4.91 24.11
102 7.09 50.27
95 0.09 0.0081
94 -0.91 0.8281
88 -6.91 47.75
Sum=162
.92
σ=Sq root of (162.92/12) =3.68.

Z = 1.96 for 95% Confidence

Confidence of interval = µx ± σxZ95%

= 94.91 ± 3.68*1.96

= 87.7≤µ≤102.12

Q9. The table shows the amount of sales (in Rs.l 000) Y, made by each of the eight
sales persons and number of years of sales experience (X) for each of them

X: 6 5 3 1 4 3 6 2

Y: 9 6 4 3 3 5 8 2

(a) Find the linear regression for the sales on the experience or sales persons.

Ans.

As per the graph, Linear Regression for the sales on the experience is:

Y = 1.1915X + 0.5319

(b) Predict the expected sales if a person has 10 years experience.

Ans.

X = 10 years experience

Predicted Sales Y = 1.1915X + 0.5319

 = 1.1915*10 + 0.5319

= 12.4469 ~ Rs. 12000

(c) Give the increase in sales for each additional year of experience.

Ans.

(d) Find the correlation coefficient and coefficient determination and

interpret the results.

Ans.

Correlation coefficient as per the graph is R= Sq root of (0.7582) = 0.8707.

Coefficient determination R2 = 0.7582.

Interpretation: Coefficient of determination is 0.7582 (~0.76) hence ~76% of

variance in years of experience is shared with sales amount or vice versa.