BUSSINESS MATHEMATICS

TIME: 3 HOUR M.M.: 70

NOTE: ALL QUESTIONS CARRY EQUAL MARKS 10.

Q. 1 A bag contains 2 red, 3 green and 2 blue balls. Two balls are drawn at random. What is the probability that none of the balls drawn
is blue?

Sol.

Q. 2 What is the probability of the occurrence of a number that is odd or less than 5 when a fair die is rolled.

Solution

Let the event of the occurrence of a number that is odd be A and the event of the occurrence of a number that is less than 5 be B. We
need to find P(A or B).

P(A) = 3/6 (odd numbers = 1,3 and 5)

P(B) = 4/6 (numbers less than 5 = 1,2,3 and 4)

P(A and B) = 2/6 (numbers that are both odd and less than 5 = 1 and 3)

Now, P(A or B) = P(A) + P(B) P(A or B)

 = 3/6 + 4/6 2/6

P(A or B) = 5/6.

Q.3 Here we have a 2x2 contingency table. Chi-Square is the appropriate test to use, but since we have 1 d.f., we will modify the
formula to include "Yates' correction for continuity".

support no support row totals:

conform: 18 40 58
not conform: 32 10 42
column totals: 50 50 100

(a) Calculate the row, column and grand totals.

(b) Calculate the expected frequency for each cell of the table, by multiplying together the appropriate row and column totals
and then dividing by the grand total.
(c) Subtract each expected frequency from its associated observed frequency; but then apply Yates' correction, by subtracting
0.5 from the absolute value of each O-E value. (The vertical bars in the formula mean "ignore any minus signs").

Solution:

O: 18 40 32 10
E: 29 29 21 21

Next, work out (O - E):

(|O-E|- 0.5): 10.5 10.5 10.5 10.5

Square each of these, to get (O - E)2 :

(|O-E|- 0.5)2: 110.25 110.25 110.25 110.25

Divide each of the above numbers by E, to get (O - E)2 / E:

(O - E)2 3.80 3.80 5.25 5.25
-----------
E

Chi-squared is the sum of these:

2 = 18.10.

d.f. = (rows - 1) * (columns - 1) = 1 * 1 = 1.

Our obtained value of Chi-Squared is bigger than the critical value of Chi-Squared for a 0.001 significance level. In other words,
there is less than a one in a thousand chance of obtaining a Chi-Square value as big as our obtained one, merely by chance. Therefore
we can conclude that there is a significant difference between the "support" and "no support" conditions, in terms of the frequency with
which individuals conformed.

Q. 4 What is the relationship between Mean, Median and Mode :

(a) Symmetrical curve.

(b) a negatively skewed curve.

(c) A positively skewed curve,

From the marks obtained by 120 students each in section A and B of a class, the following measures are secured :

Section A Section B
Mean = 47 Marks Mean = 48

Standard deviation = 15 Marks Standard deviation = 15 marks

Mode = 52 Mode = 45.

Find out the coefficient of skewness and determine the degree of skewness and in which distribution, the marks are more skewed.

Solution : The relationship between mean, median and mode, in different cases, can be established as :
(a) In a symmetrical curve, there is no skewness. Therefore the value of mean = median = mode.
(b) In a negatively skewed curve, the value of mean is less than median is less than mode. In other words, mean < median < mode.
(c) In a positively skewed curve, the value of mean is greater than median is greater than mode. In other words, mean > median >
mode.
In the given problem, for finding out the degree of skewness, we have to compute the coefficient of skewness.

where

2 = 3, Mesokurtic Curve

2 < 3, Platykurtic Curve

2 >3 Leptokurtic Curve

Measures of Kurtosis

Measure of kurtosis is denoted by 2 and in a normal distribution 2= 3.

If 2 is greater than 3, the curve is more peaked and is named as leptokurtic. If 2 is less than 3, the
curve is flatter at the top than the normal, and is named as platykurtic. Thus kurtosis is measured by
2

R.A. Fisher had introduced another notation Greek letter gamma, symbolically.
2 = 2 3.

In this case of a normal distribution, 2 is zero. 2 is more than zero (positive), then the curve is platykurtic and if 2 is less than 0
(negative) then the curve is leptokurtic.
It may be noted that 4 = is an absolute measure of kurtosis but 2 = is a relative measure of kurtosis. Larger the value of 2 in a
frequency distribution, the greater is its departure from normality.
1 and 2 are measures of symmetry and normality respectively. If 2 = 0, the distribution is symmetrical and if 2 = 3, the
distribution curve is mesokurtic.

Comparison among dispersion, skewness and kurtosis

Dispersion, Skewness and Kurtosis are different characteristics of frequency distribution. Dispersion studies the scatter of the items
round a central value or among themselves. It does not show the extent to which deviations cluster below an average or above it.
Skewness tells us about the cluster of the deviations above and below a measure of central tendency. Kurtosis studies the
concentration of the items at the central part of a series. If items concentrate too much at the centre, the curve becomes
LEPTOKURTIC and if the concentration at the centre is comparatively less, the curve becomes PLATYKURTIC.

Q. 5 The following data is given. Find a) the mean and b) the variance.

f
Class Intervals
 0 - under 10 10

10 - under 20 20

20 - under 30 40

30 - under 40 20

40 - under 50 10

Total 100

Solution: Of course, it is unnecessary to do everything in the table below, but you should know how to do the problem
using both computational and definitional formulas.

f n 100 fx 2500 fx 2
74500
So , , ,

x
fx 2500 25
n 100
a) and, using the computational formula,

s 2

fx 2
nx 2

74600 100 25 2
12000
121 .21212
n 1 100 1 99
. Ans.

Q.6 The table below shows the number of absenses, x in a calculus course and the final exam grade, y, for 7 students.
Find the correlation coefficient and interpret your result.
 s 2

f x x 2

12000
121 .21212
n 1 99 s 121 .21212 11 .0096
Or using the definitional formula . So and
s 11 .0096
C 0.4404
x 25
.

Q. 7

Sol. Let xi be the i th salary and fi be the corresponding frequency.

mean of grouped data = = (xi*fi) / fi

= (3500*5 + 4000*8 + 4200*5 + 4300*2) /(5 + 8 + 5 + 2)

= $3955

b) standard deviation of grouped data = [ ((xi-)2*fi) / fi ]

= [ (5*(3500-3955)2+8*(4000-3955)2+5*(4200-3955)2+2*(4300-3955)2) /(20) ]

= 282 (rounded to the nearest unit)