Quantitative Techniques Name:
End Term Revaluation Exam
Maximum Marks: 70 Total Time: 150 Minutes
Note:
• Please state any assumptions you’re making clearly.
• You can use the z-tables and t-tables provided at the end of the question paper.
• Anything written outside the provided space/box will not be evaluated
Q1. Let us assume that some mutual funds are more successful than the others because of the education ( particularly MBA)
institution of its fund manager. As a potential investor, I decided to examine this relationship and found the following data:
Prob of Mutual Fund Outperforming Prob that the Mutual Fund does not
the Market outperform the Market
Top 20 MBA Program 0.11 0.29
Non Top 20 MBA Program 0.06 0.54
a. For a randomly selected mutual fund, what is the probability that the fund manager went to one of the Top 20
MBA Programs? [3.0 Points]
b. What is the probability of a fund outperforming the market given that the fund manager is actually from a Top
MBA program? [3.0 Points]
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c. What is the probability that a randomly selected fund outperforms the market or the manager graduated from a
top 20 MBA program. [3.0 Points ]
d. Is the event that the manager graduated from a top 20 MBA program and the event that fund outperforms the
market are independent events? [3.0 Points]
Q2. The professors at Masters Union are required to submit their final exams to the results office 10 days before the
scheduled exam. The exam coordinator sampled 20 professors and recorded the number of days before the final exams that
each submitted his or her exam. The results are
14 8 3 2 6 4 9 13 10 12
7 4 9 13 15 8 11 12 4 0
a. Compute the mean, median and mode [3.0 Points]
b. Briefly describe what each statistic tells you [3.0 Points]
c. What is the sample variance? [2.0 Points]
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Q3. Suppose you are pitching your VIP idea to investors. Your idea is good and you have a 20% chance of securing a fund
every time you present to an investor. You are pitching to 3 different investors back to back today.
a. Determine the probability distribution of the number of deals you will be able to close. Clearly state your random
variable [3.0 Points]
b. If you were to do this day after day, what is the mean number of deals that you will be able to close on any given
day? [2.0 Points]
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Q4. Suppose that the daily demand for milk at a Starbucks store is normally distributed with mean of 100L and standard
deviation of [Link] store just opened and the store manager notes that they have exactly 110L of regular milk in storage.
The next delivery of milk is scheduled for after the store closes at 7:00PM. Can you find out what is the probability that the
store will have enough milk to satisfy today’s demand? [3.0 Points]
Q5. Consider an investment that gives a return of 8% with a standard deviation of 4%. Determine the probability of losing
money on that investment [3.0 Points]
Q6.
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Q6. Yajvin Skanda is analysing the prime time television viewing habits of elderly persons. He collected data for a specific
day (12 Feb 2023) with respect to viewers in the age group of 65-70 years from a village in Telangana State. His sample
consisted of 41 viewers and the data is summarized below:
Gender Sample size Sample mean Sample standard
deviation (s)
Male 25 180 minutes 45 minutes
Female 16 140 minutes 55 minutes
a) What is the degrees of freedom associated with the sample standard deviation of viewing time of male viewers? (2.0
Points)
b) What is the lower limit of a 95% two-sided confidence interval for the average viewing time of male viewers (µM)
(rounded off)? (2.0 Points)
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c) Yajvin wanted a 99% confidence interval (two sided) for the average viewing time of Female viewers (µF). What is
the increase in the total width of the confidence interval, in minutes, as compared to the 95% interval calculated for
the same (µF)? (3.0 Points)
Choose the correct option ( 1 Points each)
d) Confidence intervals (using a sample) are a function of which of the following three things:
a. The population, the sample, and the standard deviation
b. The population parameter, the variable of interest, and the degrees of freedom
c. The data in the sample, the confidence level, and the sample size
d. The mean, the median, and the mode
e) How can you reduce the margin of error? (Tick all that apply)
a. By decreasing the confidence level
b. By decreasing the sample size
c. By increasing the sample size
d. By reducing population standard deviation
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Q 7. A computer while calculating the correlation coefficient between the variable X and Y obtained the following results:
It was, however, later discovered at the time of checking that it had copied down two pairs of observations as:
(X, Y) : (8, 10) (12, 7)
While the correct values were:
(X, Y) : (8, 12) (10, 8)
Obtain the correct value of the correlation coefficient between X and Y. (10 Points)
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Q8. Determine the correlation coefficient between advertising expenses and sales volume using Karl Pearson’s method of
correlation, based on the provided information ( 5 points)
Firm Advertisement Exp. (Rs. In Lakhs) Sales Volume (Rs. In Lakhs)
1 11 50
2 13 50
3 14 55
4 16 60
5 16 65
6 15 65
7 15 65
8 14 60
9 13 60
10 13 50
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(b) Calculate the regression coefficient and obtain the line of regression (Y on X) given the above data.
(5 Points)
Q9. Blackline Production is a new Delhi-based production house. Blackline is interested in understanding the production
cost required for producing a Bollywood film. The industry believes that the production house will require at least INR 500
million ( 50 crore) on average. It is assumed that the Bollywood movie production cost follows normal distribution.
Production cost of 40 Bollywood movies in millions of rupees is shown below:
601 627 330 364 562 353 583 254 528 470
125 60 101 110 60 252 281 227 484 402
408 601 593 729 402 530 708 599 439 762
292 636 444 286 636 667 252 335 457 632
Conduct an appropriate hypothesis test at a=0.05 to check whether the belief about cost is correct (5 Points)
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Q10. According to a student, exactly 12% of gift cards purchased from e-comm platforms are never used. The manager of
an e-comm company wants to test weather this claim is true. She collected data from 250 gift card purchases and found
that 22 gift cards were not used till expiry date.
Conduct an appropriate hypothesis test at a=0.05 to check whether the claim is true (5 Points)
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Rough Sheet
( Will not be evaluated)
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