Beruflich Dokumente
Kultur Dokumente
ASSIGNMENT SET- 1
PROGRAME- M.B.A.
SEMESTER- 1
SUBJECT CODE- MB0040
SUBJECT- STATISTICS FOR
MANAGEMENT
Page 1
MB0040 – STATISTICS FOR MANAGEMENT
In other words, the tendency of data to cluster around a figure which is in central location is
known as central tendency. Measure of central tendency or average of first order describes
the concentration of large numbers around a particular value. It is a single value which
represents all units.
Statistical Averages: The commonly used statistical averages are arithmetic mean,
geometric mean, harmonic mean.
Arithmetic mean is defined as the sum of all values divided by number of values and is
represented by X
Before we study how to compute arithmetic mean, we have to be familiar with the terms such
as discrete data, frequency and frequency distribution, which are used in this unit.
If the number of values is finite, then the data is said to be discrete data. The number of
occurrences of each value of the data set is called frequency of that value. A systematic
presentation of the values taken by variable together with corresponding frequencies is called
a frequency distribution of the variable.
Median: Median of a set of values is the value which is the middle most value when they are
arranged in the ascending order of magnitude. Median is denoted by ‘M’.
Mode: Mode is the value which has the highest frequency and is denoted by Z.
Modal value is most useful for business people. For example, shoe and readymade garment
manufacturers will like to know the modal size of the people to plan their operations. For
discrete data with or without frequency, it is that value corresponding to highest frequency.
Page 2
1. Arithmetic mean is used when:
Page 3
Median is the mid-value of series of data. It divides the distribution into two equal portions.
Similarly, we can divide a given distribution into four, ten or hundred or any other number of
equal portions.
Marital
Status Age/Sex Educated Non-Educated
Below 20yrs 20-40 Above 40 Below 20yrs 20-40 Abo
Male
Married Female
Male
Unmarried Female
3. Give a brief note of the measures of central tendency together with their merits &
Demerits. Which is the best measure of central tendency and why?
Page 4
In other words, the tendency of data to cluster around a figure which is in central location is
known as central tendency. Measure of central tendency or average of first order describes
the concentration of large numbers around a particular value. It is a single value which
represents all units.
Arithmetic mean: Arithmetic mean is defined as the sum of all values divided by number of
values and is represented by
Merits Demerits
It is simple to calculate and easy to It is affected by extreme values.
understand.
It is based on all values It cannot be determined for
distributions with open-end class
intervals.
It is rigidly defined. It cannot be graphically located.
It is more stable. Sometimes it is a value which is not in
the series.
It is capable of further algebraic
treatment.
Median: Median of a set of values is the value which is the middle most value when they are
arranged in the ascending order of magnitude. Median is denoted by ‘M’
Merits Demerits
It can be easily understood and It is not based on all values.
computed.
It is not affected by extreme values. It is not capable of further algebraic
treatment.
It can be determined graphically It is not based on all values.
(Ogives).
It can be used for qualitative data.
It can be calculated for distributions
with open-end classes.
Mode: Mode is the value which has the highest frequency and is denoted by Z.
Modal value is most useful for business people. For example, shoe and readymade garment
manufacturers will like to know the modal size of the people to plan their operations. For
discrete data with or without frequency, it is that value corresponding to highest frequency.
Page 5
Merits and demerits of mode
Merits Demerits
In many cases it can be found by It is not based on all values.
inspection.
It is not affected by extreme values. It is not capable of further
mathematical treatment.
It can be calculated for distributions It is much affected by sampling
with open end classes. fluctuations.
It can be located graphically.
It can be used for qualitative data.
4. Machines are used to pack sugar into packets supposedly containing 1.20 kg each.
On testing a large number of packets over a long period of time, it was found that the
mean weight of the packets was 1.24 kg and the standard deviation was 0.04 Kg. A
particular machine is selected to check the total weight of each of the 25 packets filled
consecutively by the machine. Calculate the limits within which the weight of the
packets should lie assuming that the machine is not been classified as faulty.
Since the sample size is 25, which is less than 30, it is a case of small sample. T
distribution is used to calculate confidence limit.
Since sample size is 25 which is less than 30 therefore it is a case of small sample
t-test distribution is used to calculate confidence interval.
= ± tα/2 S/√n
Page 6
= 1.24 ± [2.064 (0.04 / 5) ]
= 1.24 ± 0.016512
= 1.223488 ≤ µ ≤ 1.256512
==========
5. A packaging device is set to fill detergent power packets with a mean weight of 5
Kg. The standard deviation is known to be 0.01 Kg. These are known to drift upwards
over a period of time due to machine fault, which is not tolerable. A random sample of
100 packets is taken and weighed. This sample has a mean weight of 5.03 Kg and a
standard deviation of 0.21 Kg. Can we calculate that the mean weight produced by the
machine has increased? Use 5% level of significance.
H0: µ = 5
H1: µ > 5 (Right tailed test)
Z = ( - µ) / (S / √n)
Z calculated = 1.428
Since calculated value, Z calculated = 1.428 is less than its critical value Zα = 1.645
Therefore, H0 is accepted.
Hence we conclude the mean weight produced by the machine has increased.
Page 7
6. Find the probability that at most 5 defective bolts will be found in a box of 200 bolts
if it is known that 2 per cent of such bolts are expected to be defective .(you may take
the distribution to be Poisson; e-4= 0.0183).
= (e-m m0) / 0!
= (e-4 40) / 1
= (0.0183) (1) / 1
= 0.0183
=========
= P (X≤5)
= (e-m m0) / 0! + (e-m m1) / 1! + ( e-m m2) / 2! + ( e-m m3) / 3! + (e-m m4) / 4! + (e-m m5) / 5!
= 0.0183 * 42.87
= 0.784521
=======
Page 8
Page 9