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AMITY SCHOOL OF DISTANCE LEARNING

Post Box No. 503, Sector 44,


Noida 201 303

ASSIGNMENT No. ADL07

Subject Name & Code : QUANTITATIVE TECHNIQUES


Study Centre : NOIDA
Enroll No. : 17070105327
Date :
Course – MBA (EFT) IV Semester

ASSIGNMENT INSTRUCTION
(a) Total weightage given to these assignments is 30%.
(b) All assignments are to be completed in your own hand writing.
(c) All questions are required to be attempted.
(d) Three assignments i.e A, B & C are to be answered. Assignments A will
carry Five subjective questions (10 marks). Assignment B will carry
three subjective questions with a (10 marks) and Assignment C will
carry Forty objective type questions (10 marks)
(e) All the three assignments are to be completed by due dates (specified from
time to time) and mailed / given by hand for evaluation at the ASODL office
Noida / your Study Centre.
(f) The evaluated assignments can be collected from your study center / ASODL
Office after Six week. Thereafter these will be destroyed at the end of each
semester.
Signature :

Name : NIMIT GUPTA

Date : ---------------------------------------------------
() Tick mark in front of the assignments submitted

Assignment “A” Assignment “B” Assignment “C”


ASSIGNMENT – ‘A’

Q. 1 Define quantitative technique. Name the two major divisions in which


you can divide these techniques. Explain the modus of operandi of
each and give names of a few technique under each category.

Ans. Quantitative techniques attempts to provide a systematic & rational


approach to the fundamental problems involved in the control of system by
making decisions, a sense achieve the best results considering all the
information that can be profitably used. Thus it is scientific method
employed for problem solving & decision making by the management.

Quantitative analysis is now extended & several alias of business operation


& responsibilities probably the most effective approach to handling of
some types of decision problems. A significant benefit of attaining some
degree of profiency with quantitative methods is exhibited in the way
problems are formulated. A problem has to well defined before it can be
formulated in a well structure framework for solution.

The 2 different divisions of quantitative techniques are:-

1) Business statistics
2) Operative Research

BUSINESS STATISTICS

Statistical data & statistical method are of immense helping the proper
understanding of the economic problem & in the formulations of economic
policies as well as evaluating of their effect for example in order to check
the overgrowing population, if emphasis has been placed on family
planning methods one can ascertain statistically the efficiency of such
methods in attaining the desired goals.

OPERATION RESEARCH

It is the application of scientific methods, technique & tools to problems


involving the operation of system. So as to provide these in control of
operation & optimum solution to the problem.
The modus of operandi of each are:-
1. formulate the problem
2. analyse the data & collection of data
3. analyse the data
a. central tendency
i) mean
ii) median
iii) mode

b. Dispersion
i) Standard deviation
ii) Mean deviation
iii) Skewness

CORRELATION, REGRESSION ANALYSIS ETC.


Testing

Hypothesis be it data & accurate to what extent


Interpret the result
Complement the result

1
Q. 2 Show for the following function f(x) = x + has its minimum value
x
greater than its max. value.

1
Ans. f(x) = x +
x
Let y = f(x)
1
y=x+
x
Differentiating on both sides w.r.t. x
dy 1
= 1− 2 (1)
dx x
dy
For Maximum & minimum =0
dx
1
Q 1− 2 = 0
x
x2 = 1
x =+1
d2y
now find
dx 2
Diff. (1) with respect to x on both sides.
d2y 2
=
dx 2 x3
for maximum
d2y
<0
dx 2
2
∴ 3 >0
x
This is satisfied when x = 1
Hence maximum value of x is
1
x+
x
1
= −1 + = −2
−1
And minimum value of x is
1
x+
x
1
= 1+ =1
−1
1
∴ for f(x) = x + minimum value is greater than minimum value.
x

Computer the price Index using


(a) weighted A.M. of price relatives &
(b) weighted G.M. of price relatives

A. weighted A.M. − year 1999


% of expenditure (x) Price (1999) (w) wx

Food 35 70 2450
Clothing 15 45 675
Fuel 10 20 200
Rent 20 80 1600
Misc. 30 40 800
Σ w = 255 Σ wx =
5725

∑ wx
For the year 1999 A.M. =
∑w
5725
= 22.45
225
weighted A.M. – year 2000
(x)% of expenditure Price (2000)w wx
Food 35 90 3150
Clothing 15 50 750
Fuel 10 25 250
Rent 20 70 1400
Misc. 20 30 600
Σ w = 265 Σ wx =
6150
6150
For the year 2000 A.M. =
265
= 23.20

B. Weighted G.M. Year 1999


x% of expenditure (x) Prices 1999 log x F log
Food 35 70 1.8451 64.
Clothing 15 45 1.6532 24.
Fuel 10 20 1.3010 13.0
Rent 20 80 1.9031 38.
Misc. 20 40 1.6021 32.09

G.M. = Antilog
( ∑1log x )
N
= Antilog
( 172.4905)
100
= 52.84
weighted G.M. : Year 2000

x% of expenditure (x) Prices 2000 log x F log


Food 35 90 1.954 68.39
Clothing 15 50 1.6990 251.41
Fuel 10 25 1.3979 13.97
Rent 20 70 1.845 36.90
Misc. 20 30 1.477 29.50
Σ x = 100 Σ f log x
=174.30

G.M. = Antilog
( ∑ f log x )
N

= Antilog
( 174.305) = 55.34
100

Q. 3A Calculate the mean, median & standard deviation of the following


data:
Ans.
Wages No. of workers Mid values Fx
0 – 15 12 7.5 90
15 – 30 18 22.5 405
30 – 45 35 37.5 1312.5
45 – 60 42 52.5 2205
60 – 75 50 67.5 3375
75 – 90 45 82.5 3712.5
90 – 105 20 97.5 1950
105 – 120 08 112.5 900
∑ fx 13950
Mean = = = 60.65
N 230
230 − 107
Median = 60 + × 15 = 62.4
50

X F 76.5 Fu U2 Fu2
u = x−
12
7.5 12 −4 −48 16 192
22.5 18 −3 −54 09 162
37.5 35 −2 −70 4 140
52.5 42 1 −42 1 42
67.5 50 0 0 0 0
82.5 45 1 45 1 45
97.5 20 2 40 4 80
112.5 08 3 24 9 72
Σ Fu=−105 Σ fu2=733
2
∑ fx 2  ∑ fx 
C= −  × 15
n  n 
2
733  105 
= 15 x − 
230  230 
= 15 × 1.72
= 25.9
Also calculate
(a) Coefficient of correlation
(b) Interquartile Range (Q3 – Q1)
(c) Skewness

A) Coefficient of correlation

X y xy x2 y2
15 12 180 225 144
30 30 900 900 900
45 65 2925 2025 4225
60 107 6420 3600 11449
75 157 11775 5625 24649
90 202 18180 8100 40804
105 222 23310 11025 49284
120 230 27600 14400 52900
Σ x=540 Σ y=1025 Σ xy=9120 Σ x2=45900 Σ y2=185399

Coefficient of correlation
∑ x⋅∑ y
R = Σ xy −
N
2 2
∑x ∑y
= ∑x −
2
 ∑ y −
2

 N   N 
( 540 ) ×1025
= 91290 −
8
2 2
 540   1025 
= 45900 −   185399 −  
 8   8 
= 0.978
B. Interquartile Range (Q3 – Q1)
N
A. Quartile = < + j − Pef × ilf
4
For Q1, j = 1
N
N = 230 , = 57.5
4
This falls in the range of 30−45.
30
< 30 + 57.5 − × 15
35
= 4178
for Q3, j = 3
3N
N = 230, = 172.5
4
Range 75−90, < = 75, Pef = 157, j – 45
15
Q3 = 75 + 1725 − 157 ×
45
= 80.166
Interquartile Range
= Q3 − Q1
= 80.166 − 4178
= 38.386

C) Skewness
median
Skewness = mean −
standard deviation
Mode = < + fm − f I (2fm −f 1 − f2 × h
f1 = 60, fm = 50, f1 = 42, f2 = 45, h = 15
60 + 50 − 42
Mode = × 15
(50 − 42) + (50 − 45)
= 69.23
69.23
Skewness = 60.65 −
25.9
= −0.33

Q.4A Which of brand of tyre would you use on the fleet of trucks & why?

Ans.
Class Freq. Mid 32.5 f ⋅d fd
Interval point d = x−
5
0-25 08 22.5 −2 −1 32
25-30 15 27.5 −1 −15 13
30-35 12 32.5 0 0 0
35-40 18 37.5 1 18 18
40-45 13 42.5 2 26 52
45-50 9 47.5 3 27 81
N=75 Σ fd=40 Σ fd2=118
∑ fd 2  ∑ fd 
C= − 2× I
N  N 
2
198  40 
= −  ×5
75  75 
= 7.67 (Brand A)

Brand B

Class Freq. Mid 32.5 f ⋅d fd


Interval point d = x−
5
0-25 06 22.5 −2 −12 24
25-30 20 27.5 −1 −20 20
30-35 32 32.5 0 0 0
35-40 30 37.5 1 30 30
40-45 12 42.5 2 24 48
45-50 0 47.5 3 0 0
Σ fd=22 Σ fd2=122

2
∑ fd 2  ∑ fd 
C= −  ×I
N  N 

198  40 
= −  ×5
75  75 
= 5.412 (Brand B)
Hence, Std. Deviation of Brand B isles than Brand A. It has a high degree
of uniformity of observation as well as homogeneity of a series. So Brand
B, of tyres would be a better choice.

B. Answer the following questions:


1. The income of a person in a particular week is Rs.50 per day, find mean
deviation of his income for the week.

Ans. Income
Day 1 50
Day 2 50
Day 3 50
Day 4 50
Day 5 50
Day 6 50
Day 7 50
Σ I = 350
I
Mean deviation = ∑ = 350
N

2) The median & variance of a distribution are35 × 2.56 respectively. Find


median &variance of each observation is multiplied by 3.

Median = 35 × 3
= 105
New 6 = 1.6 × 3
= 4.8
Variance = (4.8) × 2
= 23.04

3) The mode & standard deviation of a distribution are 55 &4.33


respectively. Find mode & std. deviation of 8 is added to each observation.

Mode = 55 + 8 = 63
Standard Deviation= 4.33 (no change)

4) The mean & std. deviation of a distribution are 15× 2 respectively. Find
std. distribution of each observation & multiplied by 5.

Mean = 15 × 5 = 75
Std. Deviation = 2 × 5 = 10

Q. 5 Define the following matrix with an example of each.

A. Row Matrix
Ans. A matrix having only one row is called a row matrix for example:
[4 1 2 7] is a 1 × 4 matrix or row matrix having 4 elements.

B. Column Matrix

Ans. A matrix having only one column is called a column matrix for example:
2 
 
1  is a 3× 1 matrix having 3 elements
4 
 

C. Zero or Null Matrix

Ans. A matrix (square or rectangular has all its elements equal to 0 is called a
NULL
0 0 0 
The Matrix 0 =   is a 2× 3 null matrix
0 0 0 

D. Square Matrix

Ans. When due number or rows of a matrix is equal to its member of columns, it
is said to be as a square matrix. For example:

 a11 a12 a13 


A =  a21 a22 a23  is a square matrix
 a31 a32 a33 

E. Diagonal Matrix

Ans. A square matrix a = (a i j) n k n is said to be diagonal matrix if a i j = 0 for


I = j for example, the matrix
4 0 0
D =  0 10 0  is a 3× 3 diagonal matrix.
 0 0 5 
The elements of a i j of matrix A, for I = j are called the diagonal elements
& the line along which they lie is called the principal diagonal.

F. Scalar Matrix

Ans. A diagonal matrix in which its diagonal elements are equal is called a
scalar matrix. For example:
2 0 0
T =  0 2 0  is a 3× 3 scalar matrix
 0 0 0 

G. Unit or Identity Matrix

Ans. A scalar matrix is which all its diagonal elements are unity is called on
Identity matrix.

1 0 0 
The Matrix 1 = 0 1 0  is a 3× 3 Identity Matrix
0 0 1 

H. Upper Triangular Matrix

Ans. A square matrix A = (a i j) is said to be upper diagonal if a i j = 0 for I > j

 a11 0 0
The Matrix A 2 =  a21 a22 0  is a Lower Triangular
 a31 a32 a33 

J. Comparable Matrix

Ans. In this both A & B elements are of the same order. Both the elements of A
& B should be equal to each other in no.
1 3  3 7

A = 0 2  B =  8 5 
 4 8   4 2 
Q.5 B Solve the following equations using Matrix method:
−2x + y + 32 = 9
x+y+x=6
x+y+2=2
 −2 1 3
D =  1 1 1
 1 −1 1
= −2(1 + 1) + 1 (1 − 1) + 3 (1 + 1)
= −4 − 6 = − 10
 9 1 + 3
D1 =  6 1 1 
 2 −1 1 
= 9(2) − (4) + 3(8)
= 18 − 4 + 24
= 10

 −2 9 3
D2 =  1 6 1
 1 2 1
= −8 − 12 = −20

 −2 1 9 
D3 =  1 1 6 
 1 −1 2 
= 16 + 4 − 18 = −30
D −10
x = 1 = =1
D −10
D −20
y = 2 = =2
D −10
D −30
z = 3 = =3
D −10
ASSIGNMENT – B

Q. 1 Calculate the Rank correlation & coefficient.

Ans.
Juices Manu (x) Sonu (y) D = x −y D2
A 2 1 1 1
B 1 3 −2 4
C 4 2 2 4
D 3 4 −1 1
E 5 5 0 0
F 7 6 1 1
G 6 7 −1 1
Σ D2 = 12

Rank Correlation
∑ D2
Coefficient = 1 − 6
n(n 2 − 1)
Where D = R1 − R2 Ranks of x & y
6(12)
r = 1−
7(49 − 1)
6(12)
= 1− = 0.785
7(48)

Yes the relationship is significant as r is a +ve value (+ 0.785)

Q. 2 Fit a straight line trend by the method of least square to the following
data:
Taking u = x − 1993
v = y − 255
Ans.
u v uv u2
−2 −1.5 30 4
−1 0 0 1
0 −30 0 0
1 5 5 1
2 25 50 4
0 −15 85 10
v = na + bu
−15 = 5(a) + 0
a = −3
Multiplying (1) both sides by u
v⋅ u = 4⋅ a + bu2
= 8.5 = 0 + b(10)
b = 8.5
Hence equation
u = a + bu
v = −3 + 8.5u
Substituting back the value of u & v
(y − 255) = −3 + 8.5 (x − 1993)
y − 255 = −3 + 8.5 × − 16940.4
[y = 8.5 × − 16688.5]

b. Likely production for the year 2000


y = 8.5 (2000) − 16688.5
= 311.5

c. Double production that of year 1993


2(225) = 8.5x − 16688.5
year 2016

Q. 3 a) The income of a group of 10,000 persons was found to be normally


distributed with mean Rs.750 PM & standard deviation = Rs.50. Show
that of this group 95% had income exceeding Rs.668 & only 5% had
income exceeding Rs.832.

Ans. Standard Normal Price


 x−x
2=  
 6 
Here x = 668, x = 750, 6 = 50
750
2 = 668 −
50
= −1.64
Area to the right of the ordinate at −1.64 is
(0.4495 + 0.5000) = 0.9495 = 95%.
The member of persons getting above Rs.832
750
= 832 −
50
= 1.64
Area to the right of ordinate at 1.64 is (0.5000) − 0.4495 = 0.0505
= 5.70 Approx.

Q.3 b) In a locality, out of 5000 people residing 1200 are above 30 years of
age & 3000 are females out of the 1200 who are above 30,200 are
females . Suppose after a person is chosen you are told that the person
is a female. What’s the possibility that she is above 30 years of age.

Ans. 5000 people → 3000 females above 30 years, 1200 people : 200 females
choose one : female
Probability that she’s above 30 eyars
(s) = 3000
(f) = 200
200
So, the required probability is
300
1
=
15
ASSIGNMENT – 2

CASE STUDY

Q. 1 Arrange in ascending order


01 112 127 133 141
04 116 128 134 141
05 117 129 138 145
10 125 130 139 146
11 125 131 140 150

Q. 2 Grouped frequency distribution


Class Intervals Frequency
100 – 110 3
110 – 120 5
120 – 130 5
130 – 140 6
140 – 150 6

Σ f = 25

Q. 3 (a) Relative Frequency


12
20
20
24
24

(b) Cumulative frequency (<) & cumulative relative frequency (<)


Class Interval Cum. Freq. Cum rel. freq.
More than 0 25 100
More than 110 22 88
More than 120 17 68
More than 130 12 48
More than 140 06 24

Q. 4 (a)
Class Interval Frequency
100 – 110 3
110 – 120 5
120 – 130 5
130 – 140 6
140 – 150 6

A) HISTOGRAM

6-
5-
4-
3-
2-
1-
0
100 110 120 130 140 150
Frequency Polygon

6-
5-
4-
3-
2-
1-
0 100 110 120 130 140 150
Assignment – 3

1. Quantitative Techniques facilitate classification and comparison of data


True / False
2. If the data is written down as collected it is called
a. Ordered Data
b. Raw Data
c. An Array

3. Any characteristic which can assume different values can be called a


variable True / False

4. A discrete variable can take


a. Only whole number values b. An infinite number of values

5. Number of children in a family is an example of


a. Continuous variable b. Discrete variable

6. Heights of Models in a beauty contest is an example of


a. Continuous variable b. Discrete variable

7. Rule determining the area is written as A=X2 where A is a function of


Variable X, then A is called
a. Independent Variable b. Dependent Variable

8. The Absolute Value of a real number is


O if X = 0
[X] = X if X > 0
−X if X < 0 True / False

9. If the revenue function is TR = 50 Q−0.5 Q2


Then Marginal Function MR = 50 − Q True / False

10. If the Total cost function TC = 500+300 Q−5Q2 Then Marginal Cost Function
MC = 500 − 10Q True / False

11. Conditions for Local Maxima are


First order Function dy/dx=0 Second Order Function d2y/dx2>0 True / False

12. Conditions for local Maxima are


First order Function dy/dx=0 Second Order Function d2y/dx2<0 True / False

13. Derivative of product of two functions


d/dx (u v) = u d/dx (v) + v d/dx True / False
14. Derivative of loge u
d/dx(loge u) = 1/u loge du/dx True / False

15. A matrix is an array of m x n numbers arranged in m− columns & n− rows


True / False

16. A square matrix is one where number of rows = (number of columns)2


True /False

17. [4 1 2 7] is a
a. 4 × 1 matrix b. 1 × 4matrix

18. if A = [2 3 4] A2 = [21 6]
[1 4 5] [3 4 7]
[6 7 8] [4 5 8]
2
Then A is called the TRANSPOSE OF A True / False

19. The INVERSE of the INVERSE MATRIX is the original matrix. True / False

20. Measure of Central Tendency is a data set refers to the extent to which the
observations are scattered. True / False

21. The value of all observations in the data set is taken into account when we
calculate its mean. True / False

22. If the curve of a certain distribution tails off towards the right end of the
measuring scale on the horizontal axis the distribution is said to be
positively skewed. True / False
23. Extreme values in a data having a strong effect upon the Mode
True / False

24. If the value of mean = 35.4 and value of media = 35 the shape of the curve
skewed is “right”. True / False

25. If gives equal weightage to all previous months


a. Exponential Smoothing
b. Moving Average
c. Weighted Average

26. The value most often repeated in a series of observations is called


a. Median b. Mode c. Mean

27. The difference between the largest and the smallest observation is called
a. Geometric Mean b. The Range c. The Mode
28. The middle most value in a series of observations arranged in an array is
called
a. Mode of the series b. Median of the series

29. When the value of two variables move in the same direction, the correlation
is said to be positive. True / False

30. Value of correlation lies between


a. 0 to 1 b. −1 to 1

31. Kari Parson’s coefficient of correlation is given by


Cov(X,Y)
“r” = σxσy

32. “Line of best fit” is determined by “Method of Lease Squares”


a. True b. False

33. A decision tree is a graphic model of a decision process


a. True b. False

34. A time series is a set of observations taken at


a. Specified Intervals b. Not necessary at equal intervals

35. Quartiles are those which divide the total data into
a. Four Equal Parts b. Ten Equal Parts c. Hundred equal parts

36. Regular variation include only seasonal variations True / False

37. Yearly data are independent of the effects of seasonal variations


True / False

38. For index numbers, base year should be a year of normalcy True / False

39. GM = SQ ROOT OF (AM * HM) True / False

40. Variances are additive True / False