Book :Introduction to Statistics for Economists Code:9309 Autumn: 2023
Q.1 Explain the following terms:
(a) Covariance
(b) Coefficient of determination
(c) Method of least squares
(d) Normal equations
Answer:
Q.2.(a)Two sets of 50 elementary school children were taught to read by two different
methods. After instruction was over, a reading test gave the following results:
x1 = 73.4,x2 = 70.3,s1 = 8,s2 = 10. Test the hypothesis that µ = µ2.
(b)Given x = 82, o2 = 15, and n = 100, test the null hypothesis that µ =86.
Answer:
Q.3. A student recorded her scores on weekly math quizzes that were marked out of a
possible 10 points. Her scores were as follows: 8, 5, 8, 5, 7, 6, 7, 7, 5, 7, 5, 5, 6, 6, 9, 8, 9, 7, 9,
9, 6, 8, 6, 6, 7. What is the Mean, Median and mode of her scores on the weekly math
quizzes?
Answer:
Q.4 You are working for the Transport manager of a large chain of supermarkets which
hires cars for the use of its staff. Your boss is interested in the weekly distances covered
by these cars. Mileages recorded for a sample of hired vehicles from 'Fleet 1' during a given
week yielded the following data: 138 164 150 132 144 125 149 157 161 150 168 126 138 186
163 146 158 140 109 136 148 152 144 145 145 109 154 165 135 156 146 183 105 108 135 153
140 135 142 128
a) Construct a frequency distribution.
b) Construct a pie chart
c) Construct steam and leaf plot.
d) Construct histogram and ogive curve.
e) Construct a Bar Diagram
Answer:
Q.5. i) A letter is chosen at random from the word STATISTICIAN.
a. What is the probability that it is a vowel?
b. What is the probability that it is a T?
ii)A Three- digit number is formed by arranging the digits 1. 5, and 6 in a random order.
a. List the sample space.
b. Find the probability of getting a number larger than 400.
c. What is the probability that an even number is obtained?
Answer:
Q.6. Define Statistics. Explain its types, and importance to trade, commerce and business.
Answer:
Definition of Statistics
Statistics is the branch of mathematics that deals with the collection, analysis, interpretation,
presentation, and organization of data. It provides tools and methods for making informed
decisions based on data, allowing researchers and practitioners to draw conclusions and make
predictions.
Types of Statistics
Statistics can be broadly categorized into two main types:
1. Descriptive Statistics:
o Definition: Descriptive statistics summarize and describe the characteristics of a
data set.
o Key Measures:
▪ Measures of Central Tendency: Mean, median, and mode.
▪ Measures of Dispersion: Range, variance, and standard deviation.
▪ Graphical Representations: Charts, graphs, and tables that visually present
data.
2. Inferential Statistics:
o Definition: Inferential statistics use a random sample of data to make inferences or
generalizations about a larger population.
o Key Techniques:
▪ Hypothesis Testing: Determining the validity of a claim based on sample
data.
▪ Confidence Intervals: Estimating the range within which a population
parameter lies.
▪ Regression Analysis: Understanding relationships between variables and
making predictions.
Importance of Statistics in Trade, Commerce, and Business
1. Decision-Making:
o Statistics provide a foundation for making informed business decisions. By analyzing
data, businesses can assess market trends, consumer preferences, and operational
efficiencies.
2. Market Analysis:
o Businesses use statistical methods to analyze market conditions and consumer
behavior. This helps in identifying target markets and understanding competitors.
3. Quality Control:
o Statistical techniques, such as Six Sigma and control charts, are employed in quality
management to ensure products meet quality standards and to minimize defects.
4. Financial Analysis:
o Statistics are crucial in finance for risk assessment, investment analysis, and
forecasting future revenues and expenses. Statistical models help in portfolio
management and pricing strategies.
5. Sales Forecasting:
o Businesses use statistical methods to predict future sales based on historical data.
This aids in inventory management, production planning, and budgeting.
6. Performance Measurement:
o Statistical tools are used to evaluate the performance of employees, departments,
and overall business operations. Key performance indicators (KPIs) are often
derived from statistical analyses.
7. Customer Satisfaction:
o Surveys and feedback mechanisms use statistical techniques to analyze customer
satisfaction and preferences, helping businesses improve their products and
services.
8. Research and Development:
o Statistics support R&D efforts by analyzing experimental data, leading to innovations
and improvements in products and processes.
9. Policy Formulation:
o Governments and organizations rely on statistical data to formulate policies that
affect trade and commerce, ensuring resources are allocated efficiently.
Conclusion
In summary, statistics is an essential tool in trade, commerce, and business, enabling
organizations to analyze data effectively, make informed decisions, and improve overall
performance. Its applications range from market research and financial analysis to quality control
and customer satisfaction, making it invaluable in today’s data-driven world.
Q.7. In a certain city district, the need for money to buy drugs is stated as the reason for
75% of all thefts. Find the probability that among the next 5 theft cases reported in this
district, (a) exactly 2 resulted from the need for money to buy drugs; (b) at most 3 resulted
from the need for money to buy drugs.
Answer:
