Department of Business Administration

Block No. 13, Sector H-8, Allama Iqbal Open University, Islamabad.

Business Mathematics and Statistics (523)

Assignment No. 01
Submitted to:
Mr. Tanvir Ahmed
Department of Business Administration, Block 13, Allama Iqbal Open University (AIOU) Sector H-8, ISLAMABAD (0333-533 6631)

Submitted by:
Muhammad Hammad Manzoor MBA (HRM) 2nd Semester
Roll No. 508195394 508, 5 Floor, Continental Trade Centre (CTC)
th

Business Mathematics and Statistics (523)

Block 08, Clifton, KARACHI (0321-584 2326, 0322-555 5901)

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 01(a) Nell Berman owner of the Eastern Bakery said that the average weekly production level of her company was 11398 loaves, and the variance was 49729. If the data used to compute the results were collected for 32 weeks, during how many weeks was the production level below 11175? Above 11844. Answer: Solution: Average (Mean) = 11398 (Given) Variance = 49729 (Given) Standard Deviation = = variance = 49729 = 223

A)BELOW 11175
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) 100-68% = 32% 68% between 11175 and 11621 32/2= 16% [ above 11621 and below 11175] So, 16/100 x 32 = 5.12 weeks below 11175 B)ABOVE 11844 100-95% = 5% 95% between 10952 and 11844 5/2= 2.5% [ below 10952 and above 11844] So, 2.5/100x32 = 0.8 weeks above 11844 Note: 32/100x68 = 21.786 weeks So, = 21.7 weeks = 68% 32/100x95 = 30.4 weeks So, 2 = 30.4 weeks = 95%

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 01(b) A researcher evaluated the taste of four leading brands of fruit Juice by having a sample of individuals taste of each coffee and then rate its flavor on a scale from 1 to 5 (1 = very bad and 5 = excellent). The results from this study are summarized as follows: Fruit Juice A B C D Average rating 3.6 2.5 3.5 4.0 i) Identify the independent variable and the dependent variable for this study. ii) If the researcher used a graph to show the obtained relationship between the independent and dependent variables, what kind of graph would be appropriate? Sketch a graph showing the results of this experiment. Answer:

DEAR SIR!!! REFERECE TO MY TELEPHONIC CONVERSION REGARDING THIS QUESTION WITH YOU RIGHT NOW, MY COMMENTS REGARDING THIS QUESTION ARE AS FOLLOWS: REGARDS M. HAMMAD MANZOR
Independent variable:
Individual Taste

Dependent variable:
Juice Taste

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Graph : 01

Graph : 02

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Graph : 03

Recommended Graph: Graph. 02 Linear Graphs reveals the best distribution for the two dependent & independent variables.

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 02(a) Does the standard deviation tell us about the relationship between individual data values and the average? How? Answer: Uses of the Standard Deviation The standard deviation enables us to determine, with a great deal of accuracy, where the values of a frequency distribution are located in relation to the mean or average. Concept of the Standard Score The Standard deviation is also useful in describing how far individual data in distribution depart from the mean of the distribution. A measure called standard score gives us number of the standard deviations a particular observation lies below or above the mean. If we let X symbolize the observation, the standard score computed from the population data is. Standard Score Population standard score X-/. Where:X= Observation from the population. = Population mean. = population standard deviation. Suppose we observe a vial of compound is 0.108 percent impure. Because our population has a mean of 0.166 and standard deviation of 0.058 on observation of 0.108 would have a standard score of -1 there is a mean impurity of 15 vials of compound Population standard score X-/. Is 0.166 percent = 0.108-0.166/0.05 = 0.058/0.058 = -1
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) An observed impurity of 0.282 percent would have a standard score of +2 Standard score= X-/ =0.282-0.166/0.058 = 0.116/0.058 =2 The standard score indicates that impurity of 0.282 percent deviates from the mean by 2(0.058)=0.116 units which equals to +2 terms of the number standard deviations away from the mean.

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 02(b) A test was given to 100 students of an institute. Calculate the mean and the standard deviation. What conclusions about the variability in data would you draw? Score 1-05 06-10 11-15 16-20 21-25 26-30 Answer: S.n Sco o re Fre Mid fx q Poi (N) nt (X)
02 3 6

Frequency Score 02 31-35 05 36-40 10 41-45 11 46-50 13 51-55 20

Frequency 15 12 07 04 01

Mea Xn ( )
8.86 38.86 = -5.8 6 88.86 =0.86 138.86 = 4.14 188.86 = 9.14 238.86 = 14.1 4 288.86

(X)2

f(X)2

Sol X=fx/n

1-05

34.34

2(34.34) = 68.68

X=2730/308 =8.86 N=8.86 X=fx/n =762436.595/ 100 =7624.36595 Variant=7624. 36595 = 2= Standard =7624.36595 =87.318 Ans.

0610

05

40

8.86

0.739

5(0.739) = 3.695

1115

10

13

13

8.86

17.14

10(17.1 4)= 171.4 11(83.5 4)= 918.94 13(199. 94)= 2599.22

1620

11

18

19 8

8.86

83.54

2125

13

23

29 9

8.86

199.9 4

2630

20

28

56 0

8.86

3663 4

20(3663 4)= 10

By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523)

= 19.1 4 338.86 = 24.1 4 388.86 = 29.1 4 438.86 = 34.1 4 488.86 =39. 14 538.86 = 44.1 4 732680

3135

15

33

49 5

8.86

582.7 4

15(582. 74)= 8741.1

3640

12

38

45 6

8.86

849.1 4

12(489. 14)= 10189.6 8 7(1165. 54)= 8158.78

4145

07

43

30 1

8.86

1165. 54

10

4650

04

48

19 2

8.86

1531. 94

4(1531. 94)= 6127.76 1(1948. 34)= 1948.34

11

5155

01

53

53

8.86

1948. 34

100

308

27 30

762436. 595

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 03 Suppose A and B are mutually exclusive events and that P(A)=0.55, P(B)=0.25 i) Is the event A complement of the event B, Explain ii) Find P (A and B) iii) Find P (A and B)c Answer: Solution: i) P(A) = B-P(A) = 0.25-0.55 = -0.30 Ans. ii) P(A) = 0.55 P(B) = 0.25 P(A and B) = P(A)x P(B) = 0.55x 0.25 = 0.1375 P(A and B) = 0.1375 Ans. iii) P(A)- P(B), P(B)= 1-(B) P(A)= 1-P(A) P(A)=0.45 P(B)=0.75 P(A and B)= P(A)x P(B) = 0.45x0.75 =0.3375 Ans.

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 04 Two tourists are enjoying the view at a seaport. They have decided to spend one hour waiting for ships to reach the port. Suppose that ship arrivals at the port are a Poisson process at the mean rate of 0.25 per hour. Determine the probability that the tourists will see: a) No ship; b) 1 ship; c) 2 ships. Answer: Formula: P(x) = e-m.mx/x! x=0, 1, 2, .., n
a)

P(x) = e-m.mx/x! m= 0.25 per hour P(x) = e-0.25.0.250/0! = e-0.25 = 0.77 Ans. P(x) = e-m.mx/x! P(x) = e-0.25.0.251/1! = (0.77). (0.25) = 0.1925 Ans. P(x) = e-m.mx/x! P(x) = e-0.25.0.252/2! = (0.77). (0.0625)/2x1 = 0.048125/2 = 0.0240625 Ans.

b)

c)

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523) Q. No. 05 A course in Finance is taught to 15 students by distance learning system. A second group of 12 students was given the same course by means of face to face teaching methodology. At the end of semester the same examination was given to each group. The 14 students made an average grade of 80 with a standard deviation of 5 while the 10 students made an average of 75 with a standard deviation of 3. Find a 99% confidence interval for the difference between the population mean, assuming the populations are approximately normally distributed with equal variances. Answer: Data: n1=15 n2= 12 x1= 80 x2= 75 1- = 99% = 0.99 = =0.01 S1 =5 S2 = 3 Formula: x1 -x2 + t/2 . sp 1/n1 +1/n2 =(n1-1)S12 + (n2-1)S22/ n1+ n2-2 =(15-1)25+(12-1)9/15+12-2 =14x25+11x9/25 =350+99/25 =449/25 =17.96 =4.23 SP= 4.23
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523)

a/2=t0.01 with degree of freedom =15+12-2=25 is t0.00125= t= 2.485 Now put the value in e.g. x1 -x2 + t/2 . sp 1/n1 +1/n2 (80-75) + 2.485x4.23 1/15 +1/12 5+ 10.51155 1/15+1/12 5 + 10.51155 0.15 5+ 10.51155 x 0.387 5 + 4.068 Now 5+4.068 = 9.068 Ans. 5- 4.068 = 0.932 Ans. Or 9.068<U1 U2 = 0.932 Ans.

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)

Business Mathematics and Statistics (523)

Mr. Tanveer Ahmed Block No. 13, MBA Department, AIOU, H-8 ISLAMABAD. (0333-533 6631)

M. Hammad Manzoor 508195394 # 508, 5th Floor, CTC Continental Trade Centre, Block-08 08, KARACHI. (0321Clifton 584 2326) Business Math & Stat 01 523

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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)