BUSINESS STATISTICS – ASSIGNMENT (UNIT – I, II)

(Last date of submission: 31st December 2024)

SECTION – A
Very Short Answer Questions (2 MARKS)

1. Define time series.

2. State the uses of time series analysis.
3. What is components in a time series?
4. Define seasonal variations.
5. Differentiate between seasonal variations and cyclical variations.
6. Define irregular variations.
7. State the different methods of analysis trend.
8. What is moving average.
9. Differentiate between additive and multiplicative model of time series analysis.
10. Define index number.
11. Define simple aggregate price index.
12. Define Simple Average of Relatives Price Index.
13. Define Weighted Aggregate Price Index.
14. Differentiate between correlation and regression.
15. State the different causes of correlation.
16. State the different types of correlation.
17. Define correlation coefficient.
18. Define probable error.
19. Differentiate between simple, partial, and multiple correlation.
20. Define rank correlation coefficient.
21. Define probable error.
22. Differentiate between time reversal and factor reversal tests in index number.
23. Differentiate between fixed base and chain base index number.
24. If covariance between X and Y is 10 and the variances of X and Y are respectively 16 and 9. Find the
coefficient of correlation
25. The correlation coefficient between two variables X and Y is found to be 0.4. What is the correlation
between 2X and Y?
26. If r = .917 and PE = 0.034. Find the number of observations
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 SECTION – B (5 marks)

1. Calculate the trend value by the method of least squares. Also calculate the monthly increase in sale
and trend value for 2030.
Year 2018 2019 2020 2021 2022 2023 2024
Sales (In
125 128 133 135 140 141 143
Rs. Lakh)

2. Fit a second-degree parabola for the following data. Also estimate the likely sales for 2026.
Year 2020 2021 2022 2023 2024
Sales (In Rs.
10 20 30 50 40
Lakh)

3. Calculate the trend values from the following data assuming 5 yearly moving average.
Year 1 2 3 4 5 6 7 8
Value 110 104 98 105 109 120 115 110
Year 9 10 11 12 13 14 15 16
Value 114 122 130 127 122 118 130 140

4. Calculate the trend values from the following data assuming 4 yearly moving average.
Year 2009 2010 2011 2012 2013 2014 2015 2016
Value 105 115 100 90 80 95 85 75
Year 2017 2018 2019 2020
Value 90 65 70 58

5. State the advantages and disadvantages of moving average method in determining trend.
6. State the advantages and disadvantages of method of least square in determining trend.
7. What is time series? Discuss the component of time series in detail.
8. Discuss the uses of index number. Also state the advantages and disadvantages of index number.
9. Discuss the problems in the construction of index number.
10. Explain Laspeyre’s, Paasche’s, Dorbish Bowley, Fisher’s and Marshall-Edgeworth Index Number.

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11. Construct the following index numbers from the given data. A) Laspeyre’s, B) Paasche’s, C) Dorbish
Bowley, D) Fisher’s and E) Marshall-Edgeworth.
COMMODITY BASE YEAR (2012) CURRENT YEAR (2024)
PRICE QUANTITY PRICE QUANTITY

A 10 30 12 50
B 8 15 10 25
C 6 29 6 30
D 6 10 6 20

12. Construct the following index numbers from the given data. A) Laspeyre’s, B) Paasche’s, C) Dorbish
Bowley, D) Fisher’s and E) Marshall-Edgeworth.
COMMODITY BASE YEAR (2012) CURRENT YEAR (2024)
PRICE QUANTITY PRICE QUANTITY

A 25 40 2000 50
B 22 18 1200 30
C 54 16 1320 44
D 20 40 1350 45
E 18 30 630 15

13. Construct Fisher’s Ideal index number from the given data and show that it satisfies both time reversal
and factor reversal tests.
COMMODITY BASE YEAR (2012) CURRENT YEAR (2024)
PRICE QUANTITY PRICE QUANTITY

A 10 100 12 144
B 15 75 20 120
C 8 80 10 110
D 20 60 25 50
E 50 500 60 540

14. From the following information about advertisement expenditure and sales –
ADVERISEMENT EXPENDITURE SALES
(IN RS. LAKHS) (IN RS. LAKHS)
ARITHMETIC MEAN 10 90
STANDARD DEVIATION 3 12
COEFFICIENT OF CORRELATION = 0.8

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 a) Determine the two regression equations.
b) Find the likely sales when advertisement expenditure is Rs. 15 lakhs.
c) What should be the advertisement budget if the company wants a sale of Rs. 120 lakhs.

15. Find the mean of X series and Y series and the coefficient of correlation from the following two
regression equations –
2Y – X = 50 & 3Y – 2X = 10
16. Derive the two regression lines from the following data –
∑X = 30, ∑X2 = 190, ∑XY = 192, ∑Y = 30, ∑Y2 = 190, n = 5
17. From the following information about advertisement expenditure and sales –
X Y
ARITHMETIC MEAN 47 96
STANDARD DEVIATION 64 81
COEFFICIENT OF CORRELATION = 0.36

a) Determine the two regression equations.

b) Calculate X when Y = 88
c) Calculate Y when X = 50

18. The following data relate to age of employee and the number of days they have reported sick in a
month. Calculate Karl Pearson’s correlation coefficient and interpret the value.

Employee 1 2 3 4 5 6 7 8 9 10
Age 30 32 35 40 48 50 52 55 57 61
Sick Days 1 0 2 5 2 4 6 5 7 8

19. Discuss the concept of regression. State the advantages, disadvantages and uses of regression analysis.
20. Calculate the coefficient of concurrent deviation from the following data.
X: 368 384 385 361 347 384 395 403 400 385
Y: 22 21 24 20 22 26 24 29 28 27
21. Seven methods of imparting business education were ranked by students of two schools as follows –
Method of teaching: I II III IV V VI VII
Ranks by 1st school: 2 1 5 3 4 7 6
Ranks by 2nd School: 1 3 2 4 7 5 6
Calculate rank correlation coefficient and comment on its values.
22. Calculate spearman’s rank correlation coefficient of from the following data.
X: 15 20 28 12 40 60 20 80
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 Y: 40 30 50 30 20 10 30 60
23. From the following table, calculate the missing value and coefficient of correlation . Given arithmetic
mean of X and Y series as 6 and 7 respectively.
X: 6 2 10 4 8
Y: 9 11 ? 8 7
24. The coefficient of correlation between two variables X and Y is 0.4 and their covariance is 10. If variance
of X series is 9, find the standard deviation of Y series
25. Calculate correlation coefficient from the following results
n = 10, ∑X=140, ∑Y=150, ∑(X-10)2=180, ∑(Y-15)2=215, ∑(X-10)(Y-15)=60

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