Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2016-2017
Mid-Semester Test (EC-2 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.

: MBA ZC417
: Quantitative Methods
: Closed Book
: 35%
: 2 Hours
: 24/09/2016 (AN)

No. of Pages
= 3
No. of Questions = 7

Please follow all the Instructions to Candidates given on the cover page of the answer book.
All parts of a question should be answered consecutively. Each answer should start from a fresh page.
Assumptions made if any, should be stated clearly at the beginning of your answer.

Q.1.

The life expectancy of computer terminals is normally distributed with a mean of 4 years and a
standard deviation of 1 year.
(a) What is the probability that a randomly selected terminal will last more than 5 years?
(b) What percentage of terminals will last between 5 and 6 years?
[1 + 2 = 3]

Q.2.

The Humanities department reports that 10% of the engineering students take their History course on
a pass/fail basis. Assume that six students are registered for this course.
(a)
What is the expected number of students who have registered on a pass/fail basis?
(b)
What is the probability that exactly two are registered on a pass/fail basis?
(c)
What is the probability that none are registered on a pass/fail basis?
[1 + 1 + 1 = 3]

Q.3.

A random sample of nine telephone calls in an office provided the following information.
Duration
Call Number
(In Minutes)
Type of Call
1
3
local
2
8
STD
3
4
local
4
3
local
5
5
STD
6
6
local
7
3
local
8
5
local
9
8
local
(a)
(b)
(c)
(d)
(e)

Q.4.

Determine the point estimate for the average duration of all calls.
What is the point estimate for the standard deviation of the population? (Marks will be
assigned only if complete working is shown, preferably as done in class)
Give an estimate for the standard error of the mean.
What is the point estimate for the proportion of all calls that were STD?
Give an estimate for the standard error of proportion.
[1 + 3 + 1 + 1 + 1 = 7]

A university planner is interested in determining the percentage of students who will attend summer
school. She takes a pilot sample of 160 students discovering that 56 will return to summer school.
(a)
Construct a 95% confidence interval estimate for the percentage of students who will attend
summer school.
(b)
For a 95% confidence interval, how large a sample would have to be taken to provide a
margin of error of 3% or less?
[3 + 3 = 6]

MBA ZC417 (EC-2 Regular)

First Semester 2016-2017

Page 2

Q.5.

A random sample of 121 checking accounts at a village bank showed an average daily balance of
Rs280. The standard deviation of the population is known to be Rs.66.
(a)
Give a point estimate of the population mean.
(b)
Find the standard error of the mean.
(c)
What is the sampling distribution of the mean
(d)
For a 90% confidence interval what is the margin of error
(e)
Construct a 90% confidence interval for the mean.
[1 + 1 + 1 + 1 + 1 = 5]

Q.6.

A policeman believes that at least 88% of the drivers stopped on Saturday nights for speeding are
under the influence of alcohol. A sample of 66 drivers who were stopped for speeding on a Saturday
night was taken. Eighty percent of the drivers in the sample were under the influence of alcohol.
(a)
State the null and alternative hypotheses.
(b)
What is the estimate for drunk drivers?
(c)
What is the standard error of proportion?
(d)
Compute the test statistic.
(e)
Compute the p-value
(f)
Test the hypotheses at the .05 level of significance.
[1 + 1 + 1 + 1 + 1 + 1 = 6]

Q.7.

In the past, the average age of employees of a large corporation has been 40 years. Recently, the
company has been hiring older individuals. In order to determine whether there has been an increase
in the average age of all the employees, a sample of 64 employees was selected. The average age in
the sample was 45 years with a standard deviation of 16 years. Let alpha = .05.
(a)
State the null and alternative hypotheses.
(b)
Provide an estimate for the standard error of mean?
(c)
Compute the test statistic.
(d)
Compute the p-value. (Use the Standard Normal tables since t 63 ~ N(0, 1))
(e)
Test the hypotheses at the .01 level of significance.
[1 + 1 + 1 + 1 + 1 = 5]

MBA ZC417 (EC-2 Regular)

First Semester 2016-2017

Page 3