Question .

1
1.1

Class
120
130
140
150
160
170

Cumulative
Frequency

Frequency
<
<
<
<
<
<

130
140
150
160
170
180

3
7
14
8
5
3

3
10
24
32
37
40

40

Class
Midpoint, Frequency
x
,f
125
3
135
7
145
14
155
8
165
5
175
3

Fx

Fx
375
943
2025
1237
823
524

140 250
888 620
4 101 975
1 530 994
677 878
274 576

40
5 927

1.2 Less than Ogive

7 614 293

Less than ogive: Distance(KM)

1.3 Mid 70% range

Calculation :

Low percentile rage =100%-70% = 15%

Upper percentile = 15% +70% =85%
85th percentile position = 85% X 40 =34
15th percentile position = 15% x 40 =6
Smallest Distance is about 137
And highest distance is about 170

1.4 Coefficient of variation

Standard Deviation =

7 614 293

5 927 2
40

39
7 614 293878 283
39

415.59

Coefficient of variation=

S
415.59
x 100=
=280.0
X
148

Comment - Data is not spread around the mean

Question 3

X^2

Y^2

22
34
52
62
30
40
64
84
56
59

52
71
76
54
67
83
66
90
77
84

484
1156
2704
3844
900
1600
4096
7056
3136
3481

2704
5041
5776
2916
4489
6889
4356
8100
5929
7056

= 503

= 720

= 28457

= 53256

Assuming equal variances, the t Statistic:

Critical value torn 1 = 10 1 = 9 degrees of freedom and 5% level of significance

is t* = 2.262. Critical region: t > 2.262.
We don't reject H0 because test statistic t = 1.36 < 2.262. There is no statistically
significant difference the mean weekly sales for the two display locations.

Question 4
4.1

Policy Holder Surrendering Per Quater

Comment: The communication it seems working the graph is going down from
200. Although it is in other quarter goes down but the level since year 2.
The communication is working effectively if it goes like this or improve it end at
zero in the long time.

4.2

Year
Year 1

Year 2

Year 3

Year 4

Quarter

Apr-Jun
Jul-Sep
Oct - Dec
Jan -Mar
Apr-Jun
Jul-Sep
Oct - Dec
Jan -Mar
Apr-Jun
Jul-Sep
Oct - Dec
Jan -Mar
Apr-Jun
Jul-Sep
Oct - Dec
Jan -Mar

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

201
185
190
205
184
160
171
182
167
150
163
175

slope

16 x

1
6 x

13
6

2
755

18 496 -

358
784
=
(15

18 496

201
370
570
820
920
960
1197
1456
1503
1500
1793
2100
2054
2030
2310
2640
22424

158
145
154
165
2755

136

22
424

xy

18 496
374
680

x
1
4
9
16
25
36
49
64
81
100
121
144
169
196
225
256
18496

896)
18
496
(0.86)

YEAR
Year 5

Question 5

Example 13.20

Apr-Jun
Jul-Sep
Oct - Dec
Jan -Mar

17
18
19
20

164.88
164.02
163.16
162.30

100.42%
91.22%
99.46%
108.90%

165.57
149.62
162.28
176.76

The Oil India Corporation is considering whether to go for an

offshore drilling contract to be awarded in Bombay High. If
they bid, value would be Rs 600 million with 65% chance of
gaining the contract. The Corporation may set up a new
drilling operation or move already existing operation, which
has proved successful, to new site. The probability of success
and expected returns are as follows:

New Drilling Operation

Existing Operation

Outcome
Probability

Expected Revenue
(Rs million)

Probability

Expected
Revenue
(Rs million)

Success

0.75

800

0.85

700

Failure

0.25

200

0.15

350

If the Corporation does not bid or lose the contract, they can
use Rs 600 million to modernise their operations. This would
result in a return of either 5% or 8% on the sum invested with
probabilities 0.45 and 0.55, respectively.
(a) Construct a decision tree for the problem showing clearly
the courses of action.
(b) By applying an appropriate decision criterion recommend
whether or not the Corporation should bid the
contract.
(MBA, Delhi, December, 1997)