Ques 01).

In a partially destroyed laboratory, the legible record of analysis

of correlation of data, is as follows :
(i) 8x - 10y + 66 = 0
(ii) (ii) 4x - 18y -214 = 0.

What were (a) means of x and y, (b) the coefficient of correlation

between x and y and (c) the standard deviation of y?

Soln:
Ques 02).
A) A random sample of size 64 has been drawn from a population with
standard deviation 20. The mean of the sample is 80.
(i) Calculate 95% confidence limits for the population means.

Soln:
 (ii) How does the width of the confidence interval change if the sample
size is 256 instead?
Soln:
B) A population consists of the numbers 2,5,7,8 and 10. Write all possible
simple random samples of size 3 (without replacement). Verify that the
sample mean is an unbiased estimator of the population mean.

Soln:
Ques 03). A computer chip manufacturer claims that at most 2% of the
chips it produces are defective. To check the claim of the manufacturer, a
researcher selects a sample of 250 of these chips. If there are eight
defective chips among these 250, test the null hypothesis is that more
than 2% of the chips are defective at 5% level of significance. Does this
disprove the manufactrurer's claim?(Given that Z0.05 = 1.645)

Soln:
Ques 04). A) A problem of statistics is given of three students A,B and C
whose chances of solving it are 0.3,0.5 and 0.6 respectively. What is the
probability that the problem will be solved?

Soln:

B) Suppose 2% of the items made in a factory are defective. Find the

probability that there are:
(i) 3 defectives in a sample of 100
Soln:

(ii) no defectives in a sample of 50

Soln:

Ques 05). A Manager of a car company wants to estimate the relationship

between age of cars and annual maintenance cost. The Following data
from six cars of same model are obtained as:

(a) construct a scatter diagram for the data given above

Soln:

(b) Fit a best linear regression line, by considering annual maintenance

cost as the dependent variable and the age of the car as the independent
variable.
Soln:

(c) use this regression line to predict the annual maintenance cost for the
car of age 8 years.

Soln:

Ques 06). What do you understand by the term forecasting? With the help
of the a suitable example discuss the relation between forecasting and
future planning. Briefly discuss both forecasting model.

Soln : Forecasting is the process of making predictions about future

events or trends based on historical data, current conditions, and
analysis. It is widely used in various fields such as economics, business,
finance, weather prediction, and more. Forecasting helps organizations
and individuals to anticipate future needs, challenges, or opportunities,
allowing them to make informed decisions and plan accordingly.

Example: Let's consider a retail business that experiences seasonal

fluctuations in sales. By analyzing past sales data, the company can
forecast future sales for the upcoming seasons. For instance, if historical
data shows a consistent increase in sales during the holiday season, the
company can forecast a similar trend for the coming year. This forecast
allows the business to plan its inventory, marketing strategies, and
staffing levels in advance, ensuring that it is well-prepared to meet
customer demand.

Forecasting and future planning are closely intertwined. Forecasting

provides the necessary insights and predictions about future events or
trends, which serve as the foundation for effective future planning. In
essence, forecasting informs the planning process by providing data-
driven expectations, enabling organizations or individuals to create
strategies that align with anticipated future scenarios.
For example, in the context of the retail business mentioned earlier, the
forecasted sales data for the holiday season would be used to plan
inventory levels, marketing campaigns, and staffing requirements.
Without accurate forecasting, the company might either overstock or
understock its products, leading to either excess inventory costs or
missed sales opportunities. Thus, forecasting ensures that future planning
is grounded in realistic expectations, enhancing the likelihood of
achieving desired outcomes.

Types of Forecasting Models:

There are two primary types of forecasting models:

1. Qualitative Forecasting Models: These models rely on expert

judgment, intuition, and subjective opinions rather than numerical data.
They are often used when historical data is not available or when the
situation involves new products, technologies, or markets.
Examples:
Delphi Method: This involves gathering insights from a panel of experts
who provide their forecasts independently, and then revising their
opinions based on the group’s feedback until a consensus is reached.

Market Research: Surveys, focus groups, and interviews are used to

gather qualitative data about consumer preferences and potential
demand.

2. Quantitative Forecasting Models: These models use historical

numerical data and mathematical techniques to predict future trends.
They are most effective when there is a significant amount of reliable data
available.
Examples:
Time Series Analysis: This involves analyzing historical data points
collected over time to identify trends, seasonal patterns, and cyclical
movements, and then projecting these patterns into the future. Methods
like moving averages and exponential smoothing fall under this category.

Causal Models: These models assume that the variable to be forecasted

has a cause-and-effect relationship with one or more other variables. For
example, sales might be forecasted based on advertising spend using
regression analysis.
Forecasting is a crucial tool that provides the foresight necessary for
effective future planning. By choosing the appropriate forecasting
model—whether qualitative or quantitative—organizations can better
prepare for future challenges and opportunities, thereby enhancing their
ability to achieve long-term goals.

Ques 07). Using the Regression line y=90+50x, fill up the values in the
table below:

After filling the table,compute the parameters of Goodness to fit i.e. R and
R2. Based on the result of R and R2, interpret the correlation between
variable x and y.

Soln:

Ques 08). (i) Explain Linear and circular systematic sampling with
example
Soln:

(ii) Explain Z-test and t-test with example.

Soln: Z-Test

A Z-test is a statistical test used to determine if there is a significant

difference between sample and population means or between the means
of two samples. It is typically used when the sample size is large (n > 30)
and the population variance is known or the sample size is large enough
to estimate it accurately.

Example: Suppose you have a sample of 100 students' test scores from
a school where the average test score for all students (population mean)
is known to be 75 with a population standard deviation of 10. You want to
know if the average score of your sample is significantly different from the
population mean.

Let's say the sample mean score is 78.

You would then compare this Z-value to a critical value from the Z-
distribution table to determine significance (e.g., at a 5% significance
level, the critical Z-value is approximately ±1.96).

T-Test

A t-test is used to determine if there is a significant difference between

the means of two groups or between the sample mean and a known
value when the sample size is small (n ≤ 30) and the population variance
is unknown. It is used when the data follows a normal distribution and is
appropriate for smaller sample sizes.
Example: Suppose you have a smaller sample of 20 students' test
scores from the same school. The sample mean is 78, but you don't know
the population standard deviation, only the sample standard deviation,
which is 12.

You would then compare this t-value to a critical value from the t-
distribution table based on the degrees of freedom (n-1 = 19) to
determine significance.

(iii) Explain correlation and regression with example.

Soln: Correlation

Correlation measures the strength and direction of the linear relationship

between two variables. It ranges from -1 to 1, where:
• 1 indicates a perfect positive linear relationship,
• -1 indicates a perfect negative linear relationship,
• 0 indicates no linear relationship.

Common Measure: The Pearson correlation coefficient (\( r \)) is the

most widely used measure.
Example: Suppose you want to study the relationship between hours
studied and exam scores. You collect data from 10 students and find that
the correlation coefficient between hours studied and exam scores is
r = 0.85. This indicates a strong positive linear relationship, meaning that
as the number of hours studied increases, exam scores tend to increase
as well.

Regression

Regression analysis estimates the relationship between a dependent

variable and one or more independent variables. It helps in predicting the
value of the dependent variable based on the values of the independent
variables.

Simple Linear Regression: Involves one independent variable.

Example: Continuing with the previous example, let's say you use simple
linear regression to predict exam scores based on hours studied. Your
regression equation might look like this:
Exam Score = 50 + 5 x (Hours Studied)

If a student studies for 4 hours, you can predict their exam score as:
Exam Score = 50 + 5 x 4 = 70
 (iv) Explain Probability Distribution with example.

Soln: A probability distribution describes how the values of a random

variable are distributed. It provides the probabilities of occurrence of
different possible outcomes.

Types of Probability Distributions

1. Discrete Probability Distribution: Deals with discrete random

variables, which can take on a finite or countably infinite number of
values. Examples include the binomial distribution and the Poisson
distribution.

2. Continuous Probability Distribution: Deals with continuous random

variables, which can take on an infinite number of values within a range.
Examples include the normal distribution and the exponential distribution.

Key Concepts

Probability Mass Function (PMF): For discrete distributions, the PMF

provides the probability of each possible value.

Probability Density Function (PDF): For continuous distributions, the

PDF describes the likelihood of the random variable taking on a particular
value. The area under the PDF curve over an interval represents the
probability of the random variable falling within that interval.

Cumulative Distribution Function (CDF): Describes the probability that

the random variable will take a value less than or equal to a given point.
It's applicable for both discrete and continuous distributions.

Examples

1. Discrete Probability Distribution:

Example: Binomial Distribution

Suppose you flip a fair coin 3 times. The random variable X represents
the number of heads obtained.

The probability distribution of X (number of heads) can be calculated

using the binomial distribution formula:

where:
n is the number of trials (3 flips),
k is the number of successes (number of heads),
p is the probability of success (0.5 for a fair coin).

For example:
The probability of getting exactly 2 heads ( k = 2 ) is:

2. Continuous Probability Distribution:

Example: Normal Distribution

Suppose the heights of adult women in a certain country are normally

distributed with a mean of 65 inches and a standard deviation of 3 inches.
The random variable X represents the height.

The probability distribution of X can be described by the normal

distribution with the parameters:

The probability density function (PDF) of the normal distribution is:

For example:
To find the probability that a randomly selected woman is between 62 and
68 inches tall, you would integrate the PDF from 62 to 68. This can be
done using standard normal distribution tables or computational tools.