Hall Ticket No Question Paper Code: CMB005
INSTITUTE OF AERONAUTICAL ENGINEERING
(Autonomous)
MBA I Semester End Examinations (Supplementary) May, 2018
Regulation: IARE-R16
STATISTICS FOR MANAGEMENT
Time: 3 Hours Max Marks: 70
Answer ONE Question from each Unit
All Questions Carry Equal Marks
All parts of the question must be answered in one place only
UNIT I
1. What are the functions of statistics? Discuss briefly.
Why it is necessary to learn statistics?
2. Statistician at times misuses statistics. Elucidate this statement.
Discuss important applications of statistics with special reference to decision making in modern
business and industry. Also briefly describe its limitations.
UNIT II
3. The net profits earned by 140 companies for one year are shown in Table 1. Calculate geometric
mean and harmonic mean.
Table 1
Net profit (Rs. in Lakhs) 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100
Number of companies 5 16 23 36 25 19 14 2
Calculate the quartile deviation from the data shown in Table 2.
Table 2
Class Interval 30-40 40-50 50-60 60-70 70-80 80-90 90-100
Frequency 4 6 8 12 9 7 4
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4. Calculate the Pearson's measure of skewness on the basis of mode and standard deviation for
data shown in Table 3.
Table 3
Class Interval 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
Frequency 35 40 48 100 125 87 43 22
From the data given in the Table find out which of the two series is more consistent.
Table 4
Class Interval 10-20 20-30 30-40 40-50 50-60 60-70
Series-A 10 16 34 38 24 18
Series-B 18 22 38 34 20 8
UNIT III
5. What is meant by classification? State its important objectives.
The data shown in Table 5 relate to monthly income and expenditure under different heads for
two families. Show the data by percentage bar diagram and multiple bar diagram.
Table 5
Item of Expenditure Monthly Income
Family A Family B
Food 4000 4800
Clothing 2500 3000
Rent 3000 4000
Education 1500 2500
Fuel and lighting 400 800
Others 600 900
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6. Explain the importance and limitations of graphs and diagrams.
Table 6 shows the marks secured by 100 students. Draw histogram and locate mode graphically.

Table 6
Marks Number of students
0-20 10
20-40 22
40-60 35
60-80 28
80-100 5
UNIT IV
7. Define ANOVA. Explain the step wise procedure for one way ANOVA.
Realtors are often interested in seeing how the appraised value (in thousands of dollars) of home
varies according to the size (in thousands of square feet) of the home. Find the correlation
between them from Table 7.
Table 7
Area 1.1 1.5 1.6 1.4 1.3 1.1 1.7 1.9 1.5 1.3
Value 75 95 95 87 82 98 90 94 87 96
8. The average commission charged by full service brokerage firm on a sale of common stock is $144
and standard deviation is $52. Joel Freelander has taken a random sample of 121 trades by his
clients and determined that they paid an average commission of $151. At 0.01 significance level,
can Joel conclude that his client's commissions are higher than the industry average?
Three training methods were compared to see whether they led to greater productivity after
training. The following data in Table 8 are productivity measures for individuals trained by each
method
Table 8
Method 1 45 40 50 39 53 44
Method 2 59 43 47 51 39 49
Method 3 41 37 43 40 52 37
At 0.05 level of significance, do the three training methods lead to different levels of productivity?
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UNIT V
9. State the difference between correlation and regression.
In economics the demand function for a product is often estimated by regressing the quantity
sold on the price The company is trying to estimate the demand function for its new
doll and has collected the following data shown in Table 9.
Table 9
P 20.0 17.5 16.0 14.0 12.5 10.0 8.0 6.5
Q 125 156 183 190 212 238 250 276
10. What are the components of time series?
A national shopping survey was conducted to study the average weekly buying habits of a typical
family in 1992, and 1996. The data collected is shown in Table 10.
Table 10
1992 1996
Items Unit price Quantity Unit price Quantity
Cheese oz) 1.19 2 2.09 1
Bread 1 loaf) 0.79 3 1.09 3
Eggs dozen) 0.84 2 1.35 1
Milk 1 gallon) 1.36 2 2.39 2
Calculate the
i. Laspeyers
ii. Paasche
iii. Fisher index number.
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