PRACTICE QUESTIONS

1. The income and expenditure of a family for 6 months is given as below.

Month : 1 2 3 4 5 6
Income : 35 40 60 79 83 95
Expenditure : 17 28 30 32 38 49
To what extent is the expenditure related to the income? r = 0.9055
2. Eight recruits were subjected to selection test so as to ascertain the suitability for a certain
course of training. At the end of the training they were given a proficiency test. The marks secured
by recruits are recorded below:
Selection Test (X) : 9 10 15 14 16 11 12 7
Proficiency Test(Y): 17 14 12 13 10 15 12 16
Calculate the Spearman’s Rank Correlation Coefficient and comment on its value. r =
0.81
3. The following is purchase and sales of an FMCG Product for the past 10 months. Fit a
regression line of sales on purchase.
Purchases (X): 62 72 98 76 81 56 76 92 88 49
Sales (Y) : 112 124 131 117 132 96 120 136 97 85
Also, find the sales when the purchases equals 100. Y = 0.78X + 56.26,
134.26
4. A panel of judges A & B graded 7 debators and independently awarded the following marks:
Debator : 1 2 3 4 5 6 7
Marks by A : 40 34 28 30 44 38 31
Marks by B : 32 39 26 30 38 34 28
An eighth debator was awarded 36 marks by Judge A while Judge B was not present. How many
marks would you expect him to award to the eighth debator assuming that the same degree of
relationship exists in their judgement?
Y = 0.59X + 11.78, 33.02
5. A problem in Statistics is given to five students A,B,C,D,E. Their chances of solving it are ½.
1/3, ¼, 1/5 and 1/6. What is the prob. that the problem will be solved.
(1/6)
6. A candidate is selected for interview in 3 different posts. There are 3 candidates for the 1 st post,
4 for the 2nd post and 2 for the 3rd post. What is the probability of his being selected for one of the
posts? (3/4)
7. A market survey conducted in four cities pertained to preference for Brand A soap. The
responses are shown below:
Delhi Calcutta Chennai Mumbai
Yes 45 55 60 50
No 35 45 35 45
No option 5 5 5 5
i. what is the probability that a consumer, at random , prefers brand A?
(0.538)
ii. What is the probability that a consumer prefers brand A and is from Chennai?
(0.154)
iii. What is the probability that a consumer prefers brand A given that he was from Chennai?
(0.6)
iv. Given that a consumer preferred brand A, what is the probability that he was from Mumbai?
(0.238)
8. The client company data from the Decision Dilemma reveal that 155 employees worked one of
four types of positions. Shown here is the contingency table with the type of position and by
gender.
Gender
M F
Type of position Managerial 8 3
Professional 31 13
Technical 52 17
Clerical 9 22
a. If an employee of the company is selected randomly, what is the probability that the employee is
female or a professional worker?
(0.555)
b. What is the prob that the worker is either technical or clerical?
(0.645)
c. What is the probability that a person is either managerial or professional given that the person is
a male. (0.39)
d. What is the prob that the worker is either a professional or a clerical?
(0.484)
9. An economist believes that during periods of high economic growth, the US dollar appreciates
with probability 0.70; in periods of moderate economic growth, the dollar appreciates with
probability 0.40; and during periods of low economic growth, the dollar appreciates with
probability of 0.20. During any period of time, the probability of high economic growth is 0.30, the
probability of moderate growth is 0.50, and the probability of low economic growth is 0.20.
Suppose the dollar has been appreciating during the present period. What is the probability we are
experiencing a period of high economic growth?
(0.467)
10. Suppose that the probability that person has typhoid disease is 0.03. Medical diagnosis tests are
available to determine whether the person actually has typhoid. If typhoid is actually present, the
probability that the medical diagnostic test will give a positive result is 0.9 (indicating typhoid is
present). If the typhoid is not actually present, the probability of a positive test result is 0.02.
Suppose the test has given a positive result (indicating typhoid is present) what is the prob that
typhoid is actually present.
11. (0.582)
12. A machine is designed to produce insulating washers for electrical devices of average thickness
of 0.025 cm. A random sample of 10 washers was found to have an average thickness of 0.026 cm
with a standard deviation of 0.002 cm. Test the significance of the deviation at 5% level of
significance.
H0: Deviation is not significant (x =µ), H1: Deviation is Significant (x =µ); tcal = 1.5, t(0.05, 9) =
2.262; Accept H0
13. A company produces steel tube of mean inner diameter of 2 cm. A sample of 10 tubes gives an
inner diameter of 2.01 cm and a variance of 0.004 cm2. Is the difference in the value of mean
significant at 5% level of significance?
H0: Difference is not significant, H1: Difference is Significant; tcal = 0.475, t(0.05, 9) = 2.262;
Accept H0
14. A soap manufacturing company was distributing a particular brand of soap through a large
number of retail shops. Before a heavy advertising campaign, the mean sales per week per shop
was 140 dozens. After the campaign, a sample of 56 shops were taken at random and the mean
sales per week was found to be 147 dozens with a standard deviation of 16 dozens. Can you
consider that the advertisement was effective at 5% level of significance?
H0: µ = 140, H1: µ > 140; zcal = 0.475, ztable = 1.645; Accept H0
15. The General Manager of manufacturing at a gold factory needs to determine whether a new
machine is producing a particular type of gold according to the manufacturer’s specifications,
which indicate that the gold should have a mean breaking strength of 3.25 grams and a standard
deviation of 2.61. A sample of 900 pieces of gold reveals a sample mean breaking strength of 3.4
grams. Is there evidence that the machine is not meeting the manufacturer’s specifications for mean
breaking strength? (Use 0.05 level of significance)
H0: Machine is meeting the specs for mean breaking strength, H1: Machine is not meeting the
specs for mean breaking strength; zcal = 1.724, ztable = 1.96; Accept H0
16. Electric bulbs manufactured by Co. X and Co. Y gave following results:
Co. X Co. Y
Sample Size 100 100
Mean life in hrs 1300 1248
S. D in hrs 82 93
Test whether there is any significant difference between the mean life of the bulbs at 1%
significance level.
Z = 4.19, table Z = 2.58. Reject H0.
17. A random sample of 1000 workers from South India shows that their mean wages is Rs. 47 per
week with a standard deviation of Rs. 28 and a random sample of 1500 workers from North India
has their mean wages as Rs. 49 per week with a standard deviation of Rs. 40. Is there any
significant difference between the mean wages in South India and North India at 5% significance
level??
Z = 1.47, Table Z = 1,96. Accept H0.
18. 10 accountants were given intensive coaching and 2 tests were conducted, one at the beginning
and one at the end of the coaching.

Accountant 1 2 3 4 5 6 7 8 9 10
1st test 50 42 51 42 60 41 70 55 62 38
marks
2nd test 62 40 61 52 68 51 64 63 72 50
marks

Is the coaching effective in improving the knowledge of the accountants at 5% level?

H0: No improvement, H1: There is improvement; t = 3.72. Table value of t = 1.83. So, accept
H1. i.e. there is improvement.
19. The sales if an item in 6 shops before and after a special promotional campaign is as below.

Shop 1 2 3 4 5 6
Before 53 28 31 48 50 42
Campaign
 After 58 27 30 55 56 45
Campaign

Is the campaign a success at 5% significance level?

H0: Not success, H1: Campaign is success; t = 2.78. Table value of t = 1.83. So, accept H1. i.e.
the campaign is a success.
20. In order to study the profits and losses of firms by industry, a random sample of 100 firms is
selected, and for each firm in the sample, we record whether the company made money or lost
money, and whether the firm is a service company. The data are summarized in the 2 x2
contingency table. Using the information in the table, determine whether you believe that the two
events “ the company made a profit this year” and “the company is in the service industry “ are
independent.
Industry Type
Service Non-service
Profit 190 110
Loss 210 90
H0: Profit is independent of the industry type, H1: Profit is dependent on the industry type; χ2
= 3, table value is 3.84. Accept H0. i.e. Profit is independent of the industry type.
21. A market research executive conducted a study to understand the relationship between gender
and use of shampoo. A sample of 8000 (above the age of 30) was randomly selected, and the data
is tabulated below in the form of cross tabulation:
Use shampoo Do not use shampoo Total
Male 1480 120 1600
Female 5720 680 6400
Total 7200 800 8000
What do you conclude in terms of relationship between gender and use of shampoo?
H0: Use of Shampoo is independent of the gender, H1: Use of Shampoo is dependent on the
gender; χ2 = 13.89, table value is 3.84. Reject H0. i.e. Use of Shampoo is dependent on gender.
22. The weekly sales of two products A & B were recorded as given below

A 32 28 47 63 71 39 10 60 96 14
B 19 31 48 53 67 90 10 62 40 80

Which product is more consistent based on:

i) Coefficient of Variation
ii) Mean Deviation
Ans - Product B is more
stable
23. There are 3 main brands of a certain powder. A set of 120 values is examined and found to be
allocated among four groups A, B, C and D as below:

Brands Groups
A B C D
I 0 4 8 15
 II 5 8 13 6
III 18 19 11 13

Is there any significant preference in brand preference at 5% significance level?

H0: There is no significant difference in brand preference, H1: There is significant difference
in brands preference.
Source of Variation Sum of Degrees Mean Variance Ratio
Squares of Sum of
freedom Squares
Between Brands (SSC) 168.5 2 84.25 F = 84.25/22.83
= 3.69
Error (SSE) 205.5 9 22.83
Total Sum of Squares 374
(TSS)
Table value for (2,9) DoF at 5% significance is 4.26. So, H 0 is accepted. i.e. There is no
significant difference between brand preference.
24. Four varieties of paddy were planted in 3 different plots of different soil. The yield is as below:

Brands Groups
A B C D
P 38 40 41 39
Q 45 42 49 36
R 40 38 42 42

Test whether there is any significant difference between mean yield of the varieties of paddy and
between the mean yield in different types of soil.
H0: There is no significant difference in mean yield of the 4 varieties and between different
plots, H1: There is difference in mean yield of the 4 varieties and between different plots.
FC = 1.19, FR = 1.28
Table value for (3,6) DoF at 5% significance is 4.76, Table value for (6,2) DoF at 5%
significance is 19.3. So, H0 is accepted. i.e. There is no significant difference in mean yield of
the 4 varieties and between different plots.