Statistics for Business Decisions — DU Bachelor of Business Administration (Financial Investment Analysis) Previous Year Question Papers

: Investment Analysis) 2. Answer any five questions. 5. Reference to statistics tables is allowed. 1. (a) State true or false : (i) The complete collection of all entities under study is called the sample. (i) A census is the process of gathering data on all the entities in the population. (iii) A variable is a numerical description of each of the possible outcomes of an experiment. (iv) The lowest level of data measurement is the ratio level. (v) The main objective of business analytics is to transform data into meaningful information for business managers. (vi) An event that cannot be broken down into other events is called a certainty outcome. (vii) A joint probability is the probability that at least one of two events occurs. (vili) Bayes' rule is a rule to assign probabilities under the relative frequency method. (ix) If the mean, median, and mode are equal, then the distribution is positively skewed. (1x9=9) (b) The table given below presents data regarding sales in thousands and advertisement in million rupees for the last fifteen years. Year Sales (000 units) Advertisement (Rs. million) Find out mean, median, variance and standard deviation for sales and advertisement. (9) 2. (a) Consumer Reports tested 166 different point-and-shoot digital cameras. Based upon factors such as the number of megapixels, weight (oz.), image quality, and ease of use, they developed an overall score for each camera tested. The overall score ranges from 0 to 100, with higher scores indicating better overall test results. Selecting a camera with many options can be a difficult ! process, and price is certainly a key issue for most consumers. By spending more, will a consumer really get a superior camera? And, do cameras that have more megapixels, a factor often considered to be a good measure of picture quality, cost more than cameras with fewer megapixels? Table given below shows the brand, average retail price ($), number of megapixels, weight (oz.), and the overall score for 13 Canon and 15 Nikon subcompact cameras tested by Consumer Reports. Obs. Brand Price ($) Megapixels Weight (oz.) Score Using simple linear regression, develop an estimated regression equation that could be used to predict the price given the score of the camera. Also compute coefficient of determination. Estimate price of a camera with a score of 80. (9) (b) The amount of loan granted per borrower in a small co-operative bank is normally distributed with a mean of Rs. 28,000 and standard deviation of Rs. 6,400. If a bank borrower is randomly selected, find the probability that the loan amount is (i) More than Rs. 22,000; (i) Less than Rs. 10,000; (iii) Between Rs. 21,000 and Rs. 30,000. (iv) The bank decided to give some relaxation in rate of interest to 4% of the smallest borrowers. What should be the loan amount to be eligible for this relaxation? (v) 25% of all the loans are less than what amount? (9)