Test Papers / Previous Question Papers of IGNOU MS8 Quantitative Analysis for Managerial Applications June 2005

MANAGEMENT PROGRAMME
Term-End Examination

June, 2005

MS8 : QUANTITATIVE ANALYSIS FOR MANAGERIAL APPLICATIONS

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

SECTION A

1. Mother's Hospital has the following data on weights of 200 premature babies at birth.

Construct an ogive and answer the following questions :
(a) What is the approximate middle value in the original data set ?
(b) If premature babies under 3 pounds are kept in incubator, about what percentage of Mother's premature babies will need an incubator ?

2. An investor is examining the possibility of investing in Alpha Mobile Company. Based on past perfomance, he has broken the potential results of the investment into five possible outcomes with accompanying probabilities. The outcomes are annual rates of return on a single share of stock that currently costs Rs. 150/-. Find the expected value ot return for investing in a single share of Alpha Mobile.

If the investor usually purchases stock whenever the expected rate of return exceeds 10%, will he purchase the stock, according to this data ?

3. Explain Marginal Analysis for single stage decision problems and Decision Tree approach for sequential decision problems. Give one example each of both the problems.

4. Given a sample mean of 83, a sample standard deviation of 12.5 and a sample size of 22, test the hypothesis that the value of the population mean is 70 against the alternative that it is more ihan 70. Use the 0.025 significance level.

5. In a regression problem with a sample size of 17, the slope was found to be 3.73 and the standard error of estimate 28.654. The Quantity (ΣX² - nX²) = 871.56

(a) Find the standard error of the regression slope coefficient.
(b) Construct a 98% confidence interval for the population slope.
(c) Interpret the confidence interval of part (b).

6. Write short notes on any three of the following :
(a) Analytical model vs. simulation
(b) Average deviation
(c) Bayes' theorem
(d) p value of a test
(e) Mixed auto-regressive moving average models

SECTION B

Mr. Bose works with Airports Authority of India. He has the following data :

At the 0.10 level ol significance, can he conclude that these 400 observations follow a Poisson distribution with λ = 3?

8. An employee profit sharing scheme entitled the employees to share 10% of the profit after tax. The payment made to the employees under this scheme is tax deductible. Tax is to be taken at 50%. The pre tax profit was Rs. 1,00,000 before charging the employees share of the profit.

Calculate the amount to which the employees are entitled using matrix algebra. Formulate the problem and show all workings.