MBA Semester-1 MB0040- Statistics For Management

Reg. No: 511042908

Spring 2010(Jan-June)

Master of Business Administration-MBA Semester 1

MB0040 Statistics For Management - 4 Credits (Book ID: B1129) Assignment Set- 1 (60 Marks)

Q.1

Elucidate the functions of statistics.

Answer:

1)

Statistics helps in providing a better understanding and exact description of a

phenomenon of nature. (2) Statistical helps in proper and efficient planning of a statistical inquiry in any

field of study. (3) (4) Statistical helps in collecting an appropriate quantitative data. Statistics helps in presenting complex data in a suitable tabular, diagrammatic

and graphic form for an easy and clear comprehension of the data. (5) Statistics helps in understanding the nature and pattern of variability of a

phenomenon through quantitative observations. (6) Statistics helps in drawing valid inference, along with a measure of their

reliability about the population parameters from the sample data.

Statistics, classification, invented analysis, in

the

scientific

discipline of

that

deals

with facts

the or

collection, data, was

and the

interpretation nineteenth

numerical twentieth

primarily

and

centuries

in

Western

Europe and North America. In the eighteenth century, when the term came into use, "statistics" referred to a descriptive analysis of the situation of a political state-its people, resources, and social life. In the early nineteenth century, the term came to carry the specific connotation of a quantitative description and analysis of the various aspects of a state or other social or natural phenomenon. Statistical concept and statistical thinking enable them to:-

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Solve problems in almost any domain, Support their decisions, Reduce guesswork.

Statistics is used for various purposes. Its used to simplify mass data and to make comparisons easier. Its also used to bring out trends and tendencies in the data as well as the hidden relations between variables. All this helps to make decision making much easier. Let us look at each function of statistics in detail.

1)

Statistics simplifies mass data-

The use of statistical concepts helps in simplification of complex data. Using statistical concept, statistical the manager help in can make the decisions complexity more of easily. the data The and

methods

reducing

consequently in the understanding of any huge mass of data. 2) Statistics makes comparison easier -

Without using statistical methods and concepts, collection of data and comparison cant be done easily. Statistics Grand helps us to compare of data collected from

different measures

sources. of

totals, graphs

measures and

central

tendency, of

dispersion,

diagrams,

coefficient

correlation all provide ample scopes for comparison. 3) Statistics brings out trends and tendencies in the data -

After data is collected, its easy to analyze the trend and tendencies in the data by using the various concepts of Statistics. 4) Statistics bring out the hidden relations between variables-

Statistical analysis helps in drawing inferences on data. Statistical analysis brings out the hidden relations between variables. 5) Decision making power becomes easier -

With the proper application of Statistics and statistical software packages on the collected data, managers can take effective decisions, which can increase the profit in a business.

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Q2. What are the methods of statistical survey? Explain briefly.

Answer: Surveys can be grouped into numerical and categorical types. A numerical survey is to get numbers as replies. Statistical surveys are used to collect quantitative information about items in a population. Surveys of human populations and institutions are common in political polling and government, health, social science and marketing research. A survey may focus on opinions or factual information depending on its purpose, and many surveys involve administering questions to individuals. When the questions are administered by a researcher, the survey is called a structured interview or a researcher-administered survey. When the questions are administered by the respondent, the survey is referred to as a questionnaire or a self-administered survey. Sampling: Sample selection is critical to the validity of the information that represents the populations that are being studied. The approach of the sampling helps to determine the focus of the study and allows better acceptance of the generalizations that are being made. Careful use of biased sampling can be used if it is justified and as long as it is noted that the resulting sample may not be a true representation of the population of the study. There are two different approaches to sampling in survey research: There is non probability sampling approach. In this approach the researcher does not know each element's probability of selection in the sample. The most commonly used non probability sampling method is the convenience sampling approach. With this method, it only samples those who are available and willing to participate in the survey. The use of this approach allows for convenience for the researcher while possibly losing data validity due to the lack of representation. The probability sampling approach for research methods gives each element a known chance of being included in the sample. This method is closer to a true

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MBA Semester-1 MB0040- Statistics For Management

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representation of the population. It can be difficult to use due to cost of a rigorous sampling method, and difficulty in obtaining full coverage of the target population, but the generalizations that come from it are more likely to be closer to a true representation of the population. Different forms of probability sampling are designed to achieve various benefits - e.g. theoretical simplicity, operational simplicity, detailed information on sub populations, or minimal cost. Some common forms: Equal probability of selection designs (EPS), in which each element of the population has an equal chance of being included in the sample. This uniformity makes EPS surveys relatively simple to interpret. Forms of EPS include Simple random sampling (SRS) and systematic sampling. Probability-proportional-to-size designs (PPS), in which 'larger' elements (according to some known measure of size) have a higher chance of selection. This approach is common in business surveys where the object is to determine sector totals (e.g. "total employment in manufacturing sectors"); compared to EPS, concentrating on larger elements may produce better accuracy for the same cost/sample size. Stratified random sampling approach, in which the population is divided into sub populations (called strata) and random samples are then drawn separately from each of these strata, using any probability sampling method (sometimes including further sub-stratification). This may be done to provide better control over the sample size (and hence, accuracy) within each sub population; when the variable/s of interest are correlated with sub population, it can also improve overall accuracy. Another use for stratification is when different sub populations require different sampling methods - for instance, a business survey might use EPS for businesses whose 'size' is not known and PPS elsewhere.

Q3.

Tabulate the following data:

Age: 20-40; 40-60;60-above Departments: English, Hindi, Political science,

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History, sociology Degree level: Graduates, Post graduates; PhD, students in age group and in degree level.

Total

Answer: Tables showing the values of the cumulative distribution functions, probability functions, or probability density functions of certain common distributions for different values of their parameters, and used esp to determine whether or not a particular statistical result exceeds the required significance level are called Statistical Tables.

It is a systematic organization of data in Row & Column. Tabulation involves an orderly & systematic presentation of numerical data in a form design to complain the problem under consideration. (i) Table No:- A table must be numbered different tables must have different no. numbers help location of the table. (ii) Titles:- A table must have a title, title must be written in board letters. (iii) Head notes:- If the title of table does not give complete information. Its sample mented with the head notes. (iv) Stubs:- stubs are titles of the Rows of the table (v) Caption:- Caption is the title given to the columns of the table.

The data given in the above can be tabulated as follows:

AGE (years)

DEPARTMENT Eng, Hin, Pol.sci, Soc, His

DEGREE Graduates/Post Graduate/PHD By Post Graduate

20-40

Eng,His

40-60 60-above

All the student Compulsory

Great with PhD With the Degree

Table -1

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Q4. The data given below is the distribution of employees of a business according to their efficiency. Find the mean deviation and coefficient of mean deviation from Mean and Median:

Efficiency Index Employees

22-26 25

26-30 35

30-34 15

34-38 5

38-42 2

Answer: Let 'X' is the average of Efficiency Index.(i.e) X= (Max+min)/2 f is the number of Employees.

M ean = x =

fx f
x x
X fX

Efficiency Employe Index es(f)

f x x

( x median)

f(xmedia n)

22-26 26-30 30-34 34-38 38-42

25 35 15 5 2 82

24 28 32 36 40

600 980 480 180 80 2320

-4.29 -.29 3.71 7.71 11.71

107.25 10.15 55.65 38.55 23.42 235.02

8 4 0 4 8 24

200 140 0 20 16 376

mean = x =

fx 2320 = = 28.29 f 82

md from Mean =

x x n =

2.87 = 0.1014 28.29

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md from median = [

( x median) 376 ]= = 11.75 median 32 md from median 11.75 = = 0.367 median 32

coff of md (median) =

Q5. What is conditional probability? Explain with an example.

Answer: Probability is a way of expressing knowledge or belief that an event will occur or has occurred. In mathematics the concept has been given an exact meaning in probability theory, that is used extensively in such areas of study as mathematics, statistics, finance, gambling, science, and philosophy to draw conclusions about the likelihood of potential events and the underlying mechanics of complex systems. A conditional probability is the probability of an event given that another event has occurred. It is the probability of some event A, given the occurrence of some other event B. Conditional probability is written P(A|B), and is read "the (conditional) probability of A, given B" or "the probability of A under the condition B". When in a random experiment the event B is known to have occurred, the possible outcomes of the experiment are reduced to B, and hence the probability of the occurrence of A is changed from the unconditional probability into the conditional probability given B.

Example for Conditional Probability: A math teacher gave her class two tests. 25% of the class passed both tests and 42% of the class passed the first test. What percent of those who passed the first test also passed the second test? Analysis: This problem describes a conditional probability since it asks us to find the probability that the second test was passed given that the first test was passed. In the last lesson, the notation for conditional probability was used in the statement of Multiplication Rule 2.

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Multiplication Rule 2: When two events, A and B, are dependent, the probability of both occurring is:

The formula for the Conditional Probability of an event can be derived from Multiplication Rule 2 as follows:

Now we can use this formula to solve the problem given in the example which is again given below for the ready reference: Problem: A math teacher gave her class two tests. 25% of the class passed both tests and 42% of the class passed the first test. What percent of those who passed the first test also passed the second test? Solution:

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Q6.

The probability that a football player will play Eden garden is 0.6 and

on Ambedkar Stadium is 0.4. The probability that he will get knee injury when playing in Eden is 0.07 and that in Ambedkar stadium is 0.04.What is the probability that he would get a knee injury if he played in Eden.

Answer:

Let P(E1) is the probability of the football player playing in Eden garden. P(E2) is the probability of the football player playing in Ambedkar Stadium.

Then P (E1) = 0.6 and

P(E2) = 0.4

P(E1 ) = P (E 2 ) =

1 2

Let (AE1) is the probability getting injury when playing in Eden = 0.07 (AE2) is the probability getting injury when playing in Ambedkar Stadium = 0.04

P (A / E2) = -

1 0.4 2 P(A/E 2 ) 2 = 1 1 0.6 + 0.7 2 2

= 0.3 Therefore the probability that the football player would get a knee injury if he played in Eden is 0.3.

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