Beruflich Dokumente
Kultur Dokumente
Business Statistics
(B.Com-I)
Sapna Gupta
Revised by: Archana Dursad
Lecturer
Deptt. of Commerce & Management
Biyani Girls College, Jaipur
2
Published by :
Think Tanks
Biyani Group of Colleges
ISBN: 978-93-82801-66-5
While every effort is taken to avoid errors or omissions in this Publication, any
mistake or omission that may have crept in is not intentional. It may be taken note of
that neither the publisher nor the author will be responsible for any damage or loss of
any kind arising to anyone in any manner on account of such errors and omissions.
Preface
I am glad to present this book, especially designed to serve the needs of
the students. The book has been written keeping in mind the general weakness
in understanding the fundamental concepts of the topics. The book is self-
explanatory and adopts the “Teach Yourself” style. It is based on question-
answer pattern. The language of book is quite easy and understandable based
on scientific approach.
Any further improvement in the contents of the book by making corrections,
omission and inclusion is keen to be achieved based on suggestions from the
readers for which the author shall be obliged.
I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay
Biyani, Director (Acad.) Biyani Group of Colleges, who are the backbones and
main concept provider and also have been constant source of motivation
throughout this Endeavour. They played an active role in coordinating the various
stages of this Endeavour and spearheaded the publishing work.
I look forward to receiving valuable suggestions from professors of various
educational institutions, other faculty members and students for improvement of
the quality of the book. The reader may feel free to send in their comments and
suggestions to the under mentioned address.
Author
4
Syllabus
B.Com. Part-I
BUSINESS STATISTICS
SECTION-A
1. Introduction of Statistics : Growth of Statistics, Definition, Scope, Uses, Misuses
and Limitation of Statistics, Collection of Primary & Secondary Data,
Approximation and Accuracy, Statistical Errors.
2. Classification and Tabulation of Data : Meaning and Characteristics, Frequency
Distribution, Simple and Manifold Tabulation.
3. Measuring of Central Tendency : Arithmetic Mean (Simple and Weighted),
Median (including quartiles, decides and percentiles), Mode, Geometric and
Harmonic Mean – Simple and Weighted, Uses and Limitations of Measures of
Central Tendency.
SECTION-B
4. Measures of Dispersion : Absolute and Relative Measures of Dispersion;
Quartile Deviation, Mean Deviation, Standard Deviation and their Coefficients;
Uses and Interpretation of Measures of Dispersion.
5. Skewness : Measures of Skewness.
6. Index Numbers : Meaning and Uses of Index Numbers, Simple and Weighted
Price Index Numbers, Methods of Construction of Index Numbers, Average of
Relatives and Aggregative Methods, Problems in Construction of Index
Numbers, Selection of Variables, Base, Weight, Average and Formula; Fishers
Ideal Index Number, Base Shifting, Splicing and Deflating.
SECTION-C
7. Correlation : Meaning and Significance, Scatter Diagram, Correlation Graph,
Karl Pearson‘s Coefficient of Linear Correlation between two Variables in
Grouped and Ungrouped Data by Direct and Shortcut Methods, Coefficient of
Correlation by Spearman‘s, Rank Differences Method and Concurrent Deviation
Method.
8. Linear Regression.
9. Presentation of Data, Diagrammes/Graphs of Frequency Distribution and
Histograms Ratio Scale Graph.
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Business Statistics 5
Content
S.No. Name of Topic Page No.
1. Introduction of Statistics 6- 9
8. Correlation 48-53
CHAPTER-I
C
Introduction of Statistics
“There are three type of lies – lies, damned lies and statistics – wicked in
the order of their naming.”
The main reasons for such views are -
a) Figures are convincing, and therefore people are easily led to
believe them.
b) Ignorance of limitation of statistics.
c) Lack of test of accuracy.
d) Contradiction of data from actual circumstances.
e) Lack of specific ability to arrive at correct and appropriate results.
f) Can easily be manipulated.
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10
CHAPTER-2
C
Time & Money More time, energy and Comparatively less time
money has to be spent and money is to be
in collection of these spent.
data.
Q.3 What is Law of ‘Statistical Regularity’ and the Law of ’Inertia of Large
Numbers’?
Ans.: Based on the mathematical theory of probability, Law of Statistical
Regularity states that if a sample is taken at random from a population, it
is likely to possess the characteristics as that of the population. A sample
selected in this manner would be representative of the population. If this
condition is satisfied, it is possible for one to depict fairly accurately the
characteristics of the population by studying only a part of it.
The Law of ‗Inertia of Large Numbers‘ is a corollary of the law of
statistical regularity. It states that, other things being equal, larger the size
of sample, more accurate the results are likely to be. This is because when
large numbers are considered, the variations in the component parts tend
to balance each other and, therefore, the variation in the aggregate is
insignificant.
Q.5 What do you mean by Statistical Error? Give the difference between
Mistake and Error?
Business Statistics 13
Ans.: The difference between the actual value of the figure and its approximated
value is called statistical error. For example if number of students of a
college is 1,255 but in round figures it is written as 1,300, then the
difference is called ‗Statistical error‘. In the words of Prof. Connor, ―In
statistical sense, „error‟ means the difference between the approximate
value and the true or ideal value, accurate determination of which is not
possible”.
Q.6 Write a note on the Editing of Primary Data and Secondary Data for the
purpose of Analysis and Interpretation.
Ans.: Before analysis and interpretation, it is necessary to edit the date to detect
possible errors and inaccuracies, so that accurate and impartial results
14
may be obtained. Thus editing means the process of checking for the
errors and omissions and making corrections, if necessary.
The task of editing is a highly specialized one and requires high level of
skill and carefulness to attain the proper degree of accuracy.
Editing of Primary Data : While editing primary data, the following
points should be considered :-
Hence before using secondary data, the investigators should consider the
following aspects :-
Whether the Data are Suitable for the Purpose of Investigation in
View : Quite often secondary data do not satisfy immediate needs
because they have been compiled for other purpose. The variation
can be in units of measurement, variation in the date/period to
which data is related etc.
Whether the Data is Adequate for the Investigation : Adequacy of
data is to be judged in the light of the requirements of the survey
and the geographical area covered by the available data. For
example if our object is to study ;the wage rates of the workers in
sugar industry in India and the available data cover only the state
of Rajasthan, it would not serve the purpose.
Business Statistics 15
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16
CHAPTER-3
C
Q.4 How many types of Series are there on the basis of Quantitative
Classification? Give the difference between Exclusive and Inclusive
Series.
Ans.: There are three types of frequency distributions -
(i) Individual Series : In individual series, the frequency of each item
or value is only one for example ;marks scored by 10 students of a
class are written individually.
(ii) Discrete Series : A discrete series is that in which the individual
values are different from each other by a different amount.
For example: Daily wages 5 10 15 20
No. of workers 6 9 8 5
(iii) Continuous Series : When the number of items are placed within
the limits of the class, the series obtained by classification of such
data is known as continuous series.
For example Marks obtained 0-10 10-20 20-30 30-40
No.of students 10 18 22 25
Limits Upper limit of one The two limits are not equal.
class is equal to the
lower limit of next
class.
18
Inclusion The value equal to Both upper & lower limits are
the upper limit is included in the same class.
included in the next
class.
I = L-S
1 + 3.322 log N
Where -
I = class interval N = No. of observations
L = Largest value S = Smallest value
Table
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Business Statistics 21
CHAPTER-4
C
2
where N –> No. of items
b) Discrete Series :
Arrange the variables in ascending or descending order.
Calculate cumulative frequencies.
Business Statistics 23
(ii) By grouping.
(iii) By empirical relationship.
c) Continuous Series :
(i) First calculate model class by inspection or by grouping.
(ii) Then apply the following formula -
l1 + ∆1
∆1 + ∆2
where l1 lower limit of modal class
∆1 f1 – f0
∆2 f1 – f2
f1 frequency of modal class
f0 frequency of preceding class.
f2 frequency of succeeding class
i class interval
Q.5 What is Partition Value. Give formula for calculating different Partition
Values?
Ans.: Values of the items that divide the series into many parts are known as
partition values. A variable may be divided into four, five, eight, ten and
hundred equal parts known as Quartiles, Quintiles, Octiles, Deciles and
Percentiles. The aforesaid partition values gives an idea of the formation
of the series which are used in the calculation of dispersion and skewness.
Formula used for Calculating Partition Values :
Measures Individual & Discrete Continuous Series
Series
Quartiles :
Q1 Size of N + 1 th item q1 = (N/4) th item & Q1 = l1 + i (q1 – c)
4 f
Q3 Size of 3 N + 1 th item q3 = 3 (N/4) th item & Q3 = l1 + i (q3 – c)
4 f
Quintiles : Size of 4 N + 1 th item qn4 = 4 (N/5) th item & Q3 = l1 + i (qn4 – c)
Qn4 5 f
Octiles : Size of 2 N + 1 th item o2 = 2 (N/8) th item & O 2 = l1 + i (o2 – c)
O2 8 f
Deciles : Size of 7 N + 1 th item d3 = 7 (N/10) th item & D3 = l1 + i (d7 – c)
D7 10 f
Percentiles: Size of 75 N + 1 th item 7 75 = 75(N/100)th item & P75 = l1 + i (p75 – c)
P75 100 f
Business Statistics 27
Q.6 How are Arithmetic Mean, Geometric Mean and Harmonic Mean
related to each other? Why is Arithmetic Mean greater than the
Geometric Mean and Geometric Mean is greater than the Harmonic
Mean.
Ans.: Relation between arithmetic mean, geometric mean and harmonic mean
can be given by -
(i) X>g>h and (ii) g2 = X.h.
While calculating arithmetic mean, the bigger values are given more
weightage than the small values, whereas in harmonic mean the smaller
values are given much more weightage than to the larger values.
Therefore, arithmetic mean is greater than geometric mean and geometric
mean is greater than harmonic mean.
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28
CHAPTER-5
C
Measures of Dispersion
Q.2 Explain the various methods for measuring Dispersion. Also give their
merits and demerits?
Ans.: Following are the important methods of studying dispersion -
(1) Numerical Methods :
a) Methods of limits b) Methods of average deviation:
i) Range i) Quartile Deviation
ii) Inter-quartile range ii) Mean Deviation
Business Statistics 29
Demerits :
- It does not represent all the values.
- It is an uncertain measure.
- It is very much affected by sampling fluctuations.
iii) Percentile Range : It is the difference between the values of
the 90th and 10 th percentile. It is based on the middle 80%
items of the series.
Percentile Range = P90 – P10
Merits and Demerits : Its use is limited. Percentile range
has almost the same merits and demerits as those of inter-
quartile range.
iv) Quartile Deviation / Semi – Interquartile Range :
Quartile Deviation gives the average amount by which the
two quartiles differ from the median. Quartile deviation is
an absolute measure of dispersion.
It is calculated by using the formula -
Q.D. = Q 3 – Q1 , coefficient of Q.D. = Q3 – Q1
2 Q3 + Q1
Merits :
- It is easy to calculate and understand.
- It has a special utility in measuring variation in open
end distributions.
- QD is not affected by the presence of extreme values.
Demerits :
- It is very much affected by sampling fluctuations.
- It does not give an idea of the formulation of the
series.
- It is not capable of further algebraic treatment.
v) Mean Deviation () : Mean Deviation is also known as
average deviation or first measure of dispersion. It is the
Business Statistics 31
N N N N
Where –
dx2 (X – A) 2
A Assumed Mean
Business Statistics 33
Demerits :
- It is not a numerical measure; therefore it is not
definite as a mathematical measure.
- Drawing of curve requires more time and labour.
Q.3 What is the best method of measuring Dispersion. Write the formula
for calculating combined S.D.
Ans.: Standard Deviation is the best method of measuring dispersion as
deviations taken from mean and algebraic signs are not ignored and it is
algebraically correct.
Formula for calculating combined Standard Deviation :
σ12 = N1 (σ12 + D12 ) + N2 (σ22 + D22 ) + - - - - - - - - - -
N1 + N2
Where –
N1 & N2 No. of items of two series
σ1 & σ 2 S.D. of the two series
D1 X1 – X12
D2 X2 – X12
X12 Combined arithmetic mean
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Business Statistics 35
CHAPTER-6
C
Measures of Skewness
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Business Statistics 39
CHAPTER-7
C
Index Numbers
Q.2 What is Base Year. Distinguish between Fixed Base Method and Chain
Base Method.
Ans.: Base year is such a year with which the changes in the current year are
compared. Base year should be normal year from every aspect and it
should not be affected by war, famines, inflation etc.
Base year should not be too old. The index for base period is always taken
as 100.
In fixed base method, the year selected for construction of index numbers
remains constant for all times and the base shall remain fixed.
While in chain base method the base year is changed every year, generally
preceding year and not fixed year.
Q.3 Give the types of Weights. Why are Weights used in construction of
Index Numbers?
Ans.: The term ‗Weight‘ refers to the relative importance of the different items
in the construction of the index. For example in daily use the importance
of wheat and rice is more than jute and iron.
Weights can be classified as follows -
(i) Explicit and Implicit weights : Explicit weights are called direct
weight. They may be in the form of quantity or value. In implicit
weighing, a commodity or its variety is included in the index a
numbers of times.
(ii) Fixed and Fluctuating Weight : If same weights are used from year
to year, they are called fixed weights. If weights are changed from
time to time, they are called fluctuating weights.
(iii) Arbitrary and Real Weights : If real quantities or units are used,
then those weights are called real weights.
Business Statistics 41
Unweighted Weighted
Where –
q1 Quantity of current year.
(iii) Dorbish & Bowley’s Method :
P01 = Laspeyre‘s Index + Paasche‘s Index
2
or P01 = ∑P1 q0 + ∑P1 q1
∑P0 q0 ∑P0 q1 X 100
2
(iv) Marshall - Edgeworth’s Method :
P01 = ∑P1 q0 + ∑P1 q1
∑P0 q0 + ∑P0 q1 X 100
2
(v) Fisher’s Ideal Method :
P01 = ∑P1 q0 X ∑P1 q1 X 100 or LXP
∑P0 q0 ∑P0 q1
(iv) Kelly’s Method :
P01 = ∑P1 q X 100
∑P0 q
Where – q = q0 + q1
2
(b) Weighted Average of Relatives : In this method, the price
relatives for each commodity are obtained and these price
relatives are multiplied by the value weights for each item
and the product is divided by the total of weights.
Consumer price index = ΣRW
ΣW
Where R = P1 X 100 and W = P0 q0
P0
44
Q.7 What are the methods of constructing Consumer Price Index or Cost of
Living Index Numbers?
Ans.: Consumer price index or cost of living index numbers are designed to
measure the effect of changes in the price of group of commodities and
services on the purchasing power of a particular class of society, during
any given period with reference to some fixed base. Its object is to find
out how much the consumers of a particular class have to pay more for a
certain basket of goods and services in a given period as compared to the
base period.
Following two methods are used to construct consumer price index
numbers -
(i) Family Budget method or weighted average of relatives method.
(ii) Aggregative Expenditure Method.
Family Budget Method : In this method, the price relatives for each
commodity are obtained and these price relatives are multiplied by the
value weights for each item and the product is divided by the total of
weights.
Consumer price index = ΣRW
ΣW
Where R = P1 X 100 and W = P0 q0
P0
This method is same as weighted average of price relatives method.
Aggregative Expenditure Method : This method is most popular method
for constructing consumer price index numbers. The prices of
commodities of current year as well as base year are multiplied by the
quantities consumed in the base year. The aggregate expenditure of
46
current year is divided by the aggregate expenditure of the base year and
the quotient is multiplied by 100.
Consumer price Index = ΣP1 q0 X 100
ΣP0 q0
This method is same as Laspeyre‘s method.
Q.8 What do you understand by base Shifting? Give the formula for
converting the Fixed Base Index Number to Chain Base Index Number.
Ans.: Sometimes it becomes necessary to change the base year used for
calculating index number of a series from one period to another without
returning to the original date. This change of reference base period is
usually referred to as ‗shifting the base‘.
Formula for converting Fixed Base Index to Chain Base Index -
Chain Base Index No. = Fixed base Index of Current Year X 100
Fixed base Index of Previous Year
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48
CHAPTER-8
C
Correlation
Computation of Correlation :
- Compare each item of both the series from its previous item.
If the second item is bigger put a (+) sign; if it is smaller put
a (-); and if it is equal, put a sign of (=).
- Multiply the signs of both the series.
- Total the positive signs = (C) No. of concurrent deviations.
- Apply the formula :
rc = ± ± (2C - N)
N
Where –
C No. of concurrent deviation
N No. of pairs – 1
Q. 4 What is Probable Error and Standard Error? What are the rules of testing
the significance of coefficient of Correlation.
Ans. Probable Error is an expected error in Karl Pearson‘s coefficient of
correlation, which facilitates the upper limit and lower limit of possible
correlation. With the help of probable error it is possible to determine the
reliability of the value of the coefficient in so far as it depends on the
conditions of random sampling. Formula to calculate probable error :
P.E = 0.6745 X (1 - r2 )
√N
Where –
r Coefficient of correlation.
N No. of items
Standard Error : Now a days Standard Error is preferred to probable
error. Degree of standard error is standard deviation of sampling
distribution in any statistics of random sampling.
Business Statistics 53
Other things remaining the same, it is essential that standard error should
be small as far as possible. Smaller the standard error, more uniformity
will be there in sampling distribution.
S.E. of r = (1 - r2 )
√N
Rules for Testing the Significance of Coefficient of Correlation :
(i) If coefficient of correlation is more than 6 times of probable error (r
> 6 P.E), it is significant.
(ii) If r is less than P.E. (r < P.E) it is not significant.
(iii) If r is less than 0.3 P.E (r < 0.3 P.E) it is insignificant.
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54
CHAPTER-9
C
Linear Regression
Q.1 Define Regression. Why are there two Regression Lines? Under what
conditions can there be only one Regression Line?
Ans.: Regression literally means ―return‖or ―go back‖. In the 19 th century,
Francis Galton at first used regression in his paper ―Regression towards
Mediocrity in Hereditary Stature‖ for the study of hereditary
characteristics.
Use of regression in modern times is not limited to hereditary
characteristics only but it is widely used for the study of expected
dependence of one variable on the other.
Therefore, the method by which best probable values of unknown data of
a variable are calculated for the known values of the other variable is
called regression.
Regression helps in forecasting, decision making and in studying two or
more variables in economic field. It also shows the direction, quality and
degree of correlation.
Regression Lines :
Regression line is that line which gives the best estimate of dependent
variable for any given value of independent variable. If we take the case
of two variables X and Y, we shall have two regression lines as the
regression of X on Y and the regression of Y on X.
Regression Line X and Y : In this formation, Y is independent and X is
dependent variable, and best expected value of X is calculated
corresponding to the given value of Y.
Business Statistics 55
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58
CHAPTER-10
C
Diagrammatic and
Graphic Presentation
(4) Pictograms
(5) Cartograms
(1) One Dimensional Diagrams or Bar Diagrams :
Bar diagrams are the most common types of diagram. A bar is a
thick line whose width is shown merely for attention. They are
called one dimensional because it is only the length of the bar that
matters and not the width.
Kinds of Bar Diagrams :
(i) Line Diagrams : When the number of items is large, but the
proportion between the maximum and minimum is low,
lines may be drawn to economise space. Only individual or
time series are represented by these diagrams
(ii) Simple Bar Diagrams : A simple bar diagram is used to
represent only one variable. For example the figures of
sales, production etc. of various years may be shown by
means of simple bar diagram. The bars are of equal width
only the length varies.
These diagrams are appropriate in case of individual series,
discrete series and time series.
(iii) Multiple Bar Diagrams : In a multiple bar diagram, two or
more sets of interrelated data are represented. Different
shades, colors or dots are used to distinguish between the
bars.
These are used to compare two or more related variables
based on time and place.
(iv) Sub-divided Bar Diagrams : If a bar is divided into more
than one parts, it will be called sub-divided bar diagram.
Each component occupies a part of the bar proportional to
its share in the total. For example total expenditure incurred
Business Statistics 61
much production has been achieved and how much they are
lacking behind the capacity.
(xi) Pyramid Bar Diagram : These diagrams are constructed to
show population distribution. The distribution of
population according to sex, age, education etc are
represented by this diagram. In this diagram, the base line is
in the middle and its shape is like a pyramid.
(xii) Sliding Bar Diagrams : These bars are like deo-directional
bars but instead of absolute figures percentages of two
variables are shown. One of them is shown on the right side
of the base and the other on its left.
(2) Two Dimensional Diagrams :
In two dimensional diagrams, the height as well as the width of the
bars will be considered. The area of the bars represents the
magnitude of data. Such diagrams are also known as area diagrams
or surface diagrams.
The important types are –
(i) Rectangle diagram
(ii) Square diagram
(iii) Circle or Pie diagram
(i) Rectangle Diagram : Rectangles are often used to represent
the relative magnitude of two or more values. The area of
rectangles is kept in proportion to the values.
They are placed side by side like bars and uniform space is
left between different rectangles.
The rectangles may be of different types -
a) Simple Rectangles
b) Sub-divided Rectangles
Business Statistics 63
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68
CHAPTER-11
C
Practical Exercise
Q.3 Calculate Mean, Median & Mode from the following data –
Wages No. of workers
20 – 60 80
20 – 55 74
20 – 40 40
Business Statistics 69
20 – 30 12
20 – 50 67
20 – 45 55
20 – 25 5
20 – 35 22
Q.4 Calculate both the quartiles and 45th percentile from the following data -
Marks less than : 10 20 30 40 50 60 70 80
No. of students : 4 16 40 76 96 112 120 125
Q.5 (A) A machine is assumed to depreciate 20% of its value in first year,
30% in the second year and 20% per annum for the next two years.
Depreciation is calculated on reducing balance system. What is the
average percentage depreciation for four years?
(B) In a class, average weight of 150 students is 80 kilograms. The
average weight of boys and the girls is 85 kilograms and 70
kilograms respectively. Find out the number of boys and girls in
the class.
(C) A man purchases 5 rolls of ribbins each measuring 60 metres @ 4, 6,
10, 12 and 15 metres a rupee respectively. Find the average rate of
ribbins. Will it makes any difference if the man purchases ribbins
worth Rs.4/- from each of the above rolls.
Q.6 Calculate range and semi-inter quartile range and its coefficient -
Central size : 1 2 3 4 5 6 7 8 9 10
Frequency : 2 9 11 14 20 24 20 16 5 2
Q. 11 From the following data, calculate index numbers (i) taking 2003 as base
year, and (ii) average price as base.
Commodities 2003 2004 2005
A 2 4 6
Business Statistics 71
B 4 4 7
C 5 12 13
D 10 8 12
Q.13 Construct Laspeyre‘s, Paasche‘s and Fishers Index No. from the following
data -
Base Year Current year
Commodity Price Qty Price Qty.
A 5 25 6 30
B 10 5 15 4
C 3 40 2 50
D 6 30 8 35
(1, 10) (2, 7) (3, 2) (4, 6) (5, 4) (6, 8) (7, 3) (15, 13) (8, 1) (9, 11) (10, 15)
(11, 9) (12, 5) (13, 14) (14, 12)
Q.19 The heights of fathers and sons are given in the following table -
Height of father (inches) : 65 66 67 67 68 69 71 73
Height of Son (inches) : 67 68 64 68 72 70 69 70
Find the two regression lines and calculate the expected average height of
the son when the height of the father is 67.5 inches.
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74
N 20, Fx 170, 2
2. Answer each of the following questions in not more than 50 words. Each question
carries four marks.
.(i) Calculate Median if x 45, z 36
(ii) Calculate Fisher’s index No:
Business Statistics 75
Section-A
3. Differentiate between Primary data and Secondary data. Examine critically the
important method of collection of primary data.
1996 1998
100 - 200 10 15
200 – 300 15 30
300 – 400 20 45
400 – 500 25 50
500 – 600 20 35
76
The total income of 10 employees in the last group in 1996 was Rs. 8,000
whereas of 25 employees in 1998 was Rs 20,000:
(i) Find out the total income of all employees in the year 1996 and 1998
(ii) Ascertain the range of income of middle 50% employee in the year 1996.
Section B
76 – 80 35
80 – 84 40
The age of 20 persons who secured pension rights are given below:
61, 64, 62, 70, 72, 73, 75, 78, 82, 83, 80, 66, 71, 70, 65, 77, 81, 63, 69 and 77
Calculate the monthly average pension payable and standard deviation.
6. In 1999 in an enquiry of two towns A and B it was found that the average
working class was spending on food and other item as following:
Town A Town B
Food 64% 50%
Other item 36% 50%
In 2001 the consumer price index stood at 279 for town A and 265 for town B
(Base year 1999 = 100) it was known that the rise in price of all articles cons umed
by the working class was the same for A and B.
Calculate the index for:
(i) Food
(ii) Other item for 2001
Section C
Business Statistics 77
7. On the basis of following information, find out if there is any relation between
age and illiteracy:
Age Group Total Population Literate Population
10 - 20 1200 1100
20 - 30 1000 925
30 - 40 800 740
40 - 50 500 470
50 - 60 250 230
60 - 70 150 140
70 - 80 50 45
1. Answer each of the following questions in not more than 20 words. Each question
carries two marks.
2. Answer each of the following questions in not more than 50 words. Each question
carries four marks.
Section-A
Less than 8 5
Less than 16 12
8 -24 29
24 and above 31
32- 40 8
40 and above 19
48 and above 5
Section- B
80
5. Compute mean and the standard deviation of the marks obtained by 100 students
in an Examination:
Marks Students
0-10 12
10-20 21
20-30 23
30-40 34
40-50 10
6. Construct Fisher's Ideal Index number from the following data and show that
it satisfies the time reversal test and factor reversa l test:
Section-C
18 38
19 40
Business Statistics 81
20 35
21 32
22 34
23 37
24 42
25 46
26 52
27 56
X Y
1 9
2 8
3 10
4 12
5 11
6 13
7 14
8 16
9 15
82
1. Answer each of the following questions in not more than 20 words. Each question
carries two marks.
2. Answer each of the following questions in not more than 50 words. Each question
carries four marks.
N=8, ∑dx = 56, ∑dy = 40, ∑d2 x = 524, ∑d2 y = 256, ∑dxdy = 364
(v) Explain the meaning and types of two dimensional diagrams.
Section-A
Section – B
5. For the frequency distribution given below, calculate the coefficient of Skewness
based on quartiles:
84
7. Find out coefficient of correlation between age and playing habit from the
following data:
8. From the given data prepare a cumulative frequency curve with more than type
cumulative frequencies:
1. Answer each of the following questions in not more than 20 words. Each question
carries two marks.
(i) "Ram has secured 90 percent marks in Statistics, whereas his height is 1.9
metres and weight 58 kg." Would you call these as data, state with reasons?
(ii) Write two causes of distrust of statistics.
(iii) Name any four sources of collection of secondary data.
(iv) What is bivariate frequency distribution?
(v) The mean wages of 100 laborers working in a factory running two shift of 60
and 40 laborers respectively is Rs. 38, the mean of 60 laborers working in the
morning shift is Rs.40 find the mean wages of 140 laborers working in the
evening shift.
(vi) If the variance of a series is 144 and the mean is 50, find out the coefficient
of variation.
(vii) What is the formula given by Bowley for measuring Skewness?
(viii) What is the meaning of deflating of index numbers?
(ix) Why are there two regression lines?
(x) What is cumulative frequency curve or give curve?
2. Answer each of the following questions in not more than 50 words. Each question
carries four marks.
Business Statistics 87
Section-A
Section-B
5. Calculate the standard deviation and its coefficient from the following data:
8-24 32
Less than 16 20
Less than 8 8
Section-C
7. The results of B.Com. Examination is given below from the following data.
Calculate coefficient of correlation between age and success in the examination.
18 38
19 40
20 35
21 32
22 34
23 37
90
24 42
25 46
26 52
27 56
8. From the data given below, find the expected value of X when the value of Y
is 15, and find the expected value of Y when the value of X is 30:
Arithmetic mean of X variable = 40
Arithmetic mean of Y variable = 20
S.D. of X variable ( x) =5
S.D. of Y variable ( y )= 7
Coefficient of correlation between X and Y variables r = + 0.90
Business Statistics 91
1. Answer each of the following questions in not more than 20 words. Each question
carries two marks.
2. Answer each of the following questions in not more than 50 words. Each question
carries four marks
92
(i) The average rainfall of Indore in a week except Sunday was 1.5 cm and
because of heavy rainfall on Sunday, the average of the week increased to 4
cm. How much rainfall was recorded on Sunday?
(ii) Explain three functions of statistics giving examples.
(iii) Write a brief note on law of inertia of large numbers.
(iv) Explain and illustrate the differences between time reversal.
(v) State four limitations of diagrammatic representation.
Business Statistics 93
3. "Statistics are numerical statement of facts, but all facts numerically stated
are not statistics". Clarify this statement and point out briefly which
numerical of facts are statistics.
or
Calculate Median, both the Quartiles, 9th Decile and 45th percentile from the
following data:
Income Rs (Less than): 80 70 60 50 40 30 20 10
No. of worke r: 100 90 80 60 32 20 13 5
Or
94
From the data given below calculate the cost of living index number for prices for
the year 2004 with 2003 as base by family budget method:-
Group Quantity Unit Price Price
Food grains 3 quintals Per quintal 12.00 18.0
Clothing 12 mts. Per mt. 1.00 0.90
Fuel 40 kg. per quintal 20.00 25.00
House Rent 3 rooms per room 25.00 23.00
Miscellaneous 30 units Per unit 0.40 0.50
5. The competitions in a beauty contest are ranked by three Judges in the following
order:
First Judge 1 6 5 10 3 2 4 9
7 8
Second Judge 3 5 8 4 7 10 2 1
6 8
Third Judge 3 4 9 8 1 2 3 10
5 7
Use the rank correlation to discuss which pair of Judges have the nearest approach
to common taste in beauty.
or
Obtain tow regression equations of the following information and find out the
value of Y when X= 20 and the value of X when Y = 25:-
X : 12 14 18 22 24
Y : 16 20 26 30 32
Business Statistics 95
1. Answer each of the following questions in not more than 20 words. Each question
carries two marks.
2. Answer each of the following questions in not more than 50 words. Each question
carries four marks
96
3. Cleary distinguish between primary data and secondary data and explain the
various methods of collecting primary data.
or
Calculate mean, median and mode from the following data:
Class Frequency
2 1
3 2
4 2
5-7 3
7-10 5
10-15 10
15-20 8
20-25 4
4. Geeta and Seeta have obtained the marks in six subject of B. Com Final as
under:
Geeta Seeta
50 60
65 61
49 55
54 54
78 75
82 78
98
or
Calculate the two regression coefficients and find out the two regression equation.
Estimate the average probable price when the demand of the commodity is 31 kg.
or
From the following data calculate Karl Pearson's coefficient of Correlation taking
deviation from actual means 33 and 22 respectively.
Business Statistics 99
S.No. X Y
1 10 5
2 12 7
3 15 13
4 18 15
5 ? 20
6 35 21
7 45 29
8 50 ?
9 55 36
10 65 44
____________