MBA Solved Assignments

(Book ID: B1129)

Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions

Q1. (a) ‘Statistics is the backbone of decision-making’. Comment.
(b) ‘Statistics is as good as the user’. Comment.

Answer:
a. Due to advanced communication network, rapid changes in consumer behaviour, varied expectations of variety of consumers and new market openings, modern managers have a difficult task of making quick and appropriate decisions. Therefore, there is a need for them to depend more upon quantitative techniques like mathematical models, statistics, operations research and econometrics.
Decision making is a key part of our day-to-day life. Even when we wish to purchase a television, we like to know the price, quality, durability, and maintainability of various brands and models before buying one. As you can see, in this scenario we are collecting data and making an optimum decision. In other words, we are using Statistics.
Again, suppose a company wishes to introduce a new product, it has to collect data on market potential, consumer likings, availability of raw materials, feasibility of producing the product. Hence, data collection is the back-bone of any decision making process.
Many organisations find themselves data-rich but poor in drawing information from it. Therefore, it is important to develop the ability to extract meaningful information from raw data to make better decisions. Statistics play an important role in this aspect.
Statistics is broadly divided into two main categories. Below Figure illustrates the two categories. The two categories of Statistics are descriptive statistics and inferential statistics.

2. Distinguish between the following with example.
(a) Inclusive and Exclusive limits.
(b) Continuous and discrete data.
(C) Qualitative and Quantitative data
(d) Class limits and class intervals.

3. In a management class of 100 students’ three languages are offered as an additional subject viz. Hindi, English and Kannada. There are 28 students taking Hindi, 26 taking Hindi and 16 taking English. There are 12 students taking both Hindi and English, 4 taking Hindi and English and 6 that are taking English and Kannada. In addition, we know that 2 students are taking all the three languages.

i) If a student is chosen randomly, what is the probability that he/she is not taking any of these three languages?
ii) If a student is chosen randomly, what is the probability that he/ she is taking exactly one language?

4. List down various measures of central tendency and explain the difference between them?

5. Define population and sampling unit for selecting a random sample in each of the following cases.

a) Hundred voters from a constituency
b) Twenty stocks of National Stock Exchange
c) Fifty account holders of State Bank of India
d) Twenty employees of Tata motors.
6. What is a confidence interval, and why it is useful? What is a confidence level?