Tribhuvan University
Faculty of Management
Office of the Dean
Official Model Question Paper / Dean's Office Blueprint
Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Group 'A'
Brief Answer Questions. Attempt ALL questions.
[10 × 2 = 20]- [2]
If the mean of two samples of sizes 40 and 60 are 25 and 35 respectively, calculate the combined mean of the entire group.
View model solution
Solution:
We are given:
The formula for the combined arithmetic mean (
) is: Substituting the given values:
Thus, the combined mean of the combined group is 31.
- [2]
If the standard deviation of a dataset
is 6, find the standard deviation and variance of . View model solution
Solution:
Let
, where and . Given: . By the properties of standard deviation under linear transformation:
-
Standard deviation is independent of change of origin (
), but dependent on change of scale ( ): -
Variance is the square of standard deviation:
Thus,
and . -
- [2]
In a moderately asymmetrical distribution, the lower quartile
, median , and upper quartile . Compute Bowley’s coefficient of skewness and comment on its direction. View model solution
Solution:
Given:
Bowley’s coefficient of skewness (
) is given by: Substituting the values:
Interpretation: Since
, the distribution is positively skewed (skewed to the right). - [2]
The two regression coefficients between variables
and are and . Find the correlation coefficient between and . View model solution
Solution:
Given:
The correlation coefficient (
) is the geometric mean of the two regression coefficients, carrying their common sign: Since both regression coefficients are negative,
must also be negative: Thus, the correlation coefficient between
and is (moderate negative correlation). - [2]
Define Fisher’s Ideal Index number and state why it is called an ‘ideal’ index.
View model solution
Answer:
Fisher’s Ideal Index Number is the geometric mean of Laspeyres’ index (
) and Paasche’s index ( ): Why it is called ‘Ideal’:
- Geometric Mean: It utilizes the geometric mean, which is mathematically the most suitable average for ratios and index numbers.
- Dual Weighting: It incorporates both base year quantities (
) and current year quantities ( ), avoiding the upward bias of Laspeyres and downward bias of Paasche. - Fulfills Consistency Tests: It satisfies both the Time Reversal Test (
) and the Factor Reversal Test ( ).
- [2]
Define Kurtosis and differentiate between Leptokurtic, Mesokurtic, and Platykurtic distributions using the measure
. View model solution
Answer:
Kurtosis refers to the degree of peakedness or flatness of a unimodal frequency distribution relative to a normal distribution.
Based on Pearson’s coefficient of kurtosis
: - Leptokurtic (
or ): A distribution that is more peaked with fatter tails than the normal curve. - Mesokurtic (
or ): A distribution having normal peakedness (identical to the standard Gaussian/normal distribution). - Platykurtic (
or ): A distribution that is flatter-topped with thinner tails than the normal curve.
- Leptokurtic (
- [2]
A card is drawn from a well-shuffled pack of 52 playing cards. What is the probability that it is either a King or a Heart?
View model solution
Solution:
Total number of exhaustive outcomes in a standard deck:
. - Let
be the event of drawing a King: . - Let
be the event of drawing a Heart: . - Event
is drawing the King of Hearts: .
By the Addition Theorem of Probability:
The probability of drawing a King or a Heart is
. - Let
- [2]
List the four fundamental components of a time series.
View model solution
Answer:
A business and economic time series comprises four classical components:
- Secular Trend (
): The long-term, smooth, and persistent underlying direction (growth or decline) over an extended period. - Seasonal Variations (
): Periodic, repetitive fluctuations that occur within a single year at regular intervals (e.g., quarterly, monthly, festive peaks). - Cyclical Fluctuations (
): Wave-like oscillatory movements recurring over multi-year cycles, commonly linked to macroeconomic business cycles (prosperity, recession, depression, recovery). - Irregular or Random Fluctuations (
): Unpredictable, unsystematic residual variations resulting from extraordinary events (e.g., natural disasters, wars, strikes, pandemics).
- Secular Trend (
- [2]
State the key characteristics of a standard Normal Distribution curve.
View model solution
Answer:
Key characteristics of the Normal Probability Distribution:
- Bell-shaped and Symmetrical: The curve is perfectly symmetrical around the mean (
), with Skewness = 0. - Equality of Averages: The Mean, Median, and Mode coincide at the center:
. - Asymptotic Tails: The curve approaches the horizontal axis asymptotically on both sides, extending to
without touching the axis. - Total Area: The total area under the normal curve is equal to 1 (or 100%), with 50% lying on either side of
. - Empirical Rule: Approximately 68.27% of data falls within
, 95.45% within , and 99.73% within .
- Bell-shaped and Symmetrical: The curve is perfectly symmetrical around the mean (
- [2]
What is the difference between Primary Data and Secondary Data?
View model solution
Answer:
Parameter Primary Data Secondary Data Origin Collected firsthand by the investigator for the specific purpose of the study. Gathered previously by external agencies or persons for other purposes. Originality Original in character; raw, unprocessed data. Lacks original character; processed, published, or tabulated data. Cost & Time Highly expensive and time-consuming (field surveys, interviews). Economical and swiftly accessible (journals, government records, websites). Reliability Highly relevant and specific to current research objectives. Requires careful verification for bias, accuracy, and temporal relevance.
Group 'B'
Descriptive Answer Questions. Attempt any FIVE questions.
[5 × 10 = 50]- [10]
From the following frequency distribution of daily wages earned by workers in a manufacturing plant, calculate Karl Pearson’s coefficient of skewness and interpret the result:
Daily Wages (Rs.) 100-120 120-140 140-160 160-180 180-200 200-220 220-240 No. of Workers ( ) 7 14 18 25 16 12 8 View model solution
Solution:
To compute Karl Pearson’s coefficient of skewness:
Let assumed mean
, common class interval . Let . Calculation Table:
Class Interval Mid-point ( ) Frequency ( ) 100–120 110 7 63 120–140 130 14 56 140–160 150 18 18 160–180 170 25 0 0 180–200 190 16 16 200–220 210 12 48 220–240 230 8 72 Total
Step 1: Calculation of Arithmetic Mean (
)
Step 2: Calculation of Mode (
) The maximum frequency is
, corresponding to the modal class 160–180. Here: - Lower limit
- Frequency of modal class
- Pre-modal frequency
- Post-modal frequency
- Class width
$
Step 3: Calculation of Standard Deviation (
)
Step 4: Karl Pearson’s Coefficient of Skewness (
) Interpretation: The coefficient of skewness is
, indicating that the wage distribution is very slightly positively skewed (almost symmetrical), with a minor concentration of frequencies toward the lower wage brackets and an extremely mild tail extending toward higher wages. - Lower limit
- [10]
The following data shows the Advertising Expenditure (in Lakh Rs.) and Sales Volume (in Crore Rs.) of a consumer goods company for 6 consecutive years:
Year 1 2 3 4 5 6 Adv. Expenditure ( ) 10 12 15 18 20 25 Sales Volume ( ) 24 28 32 40 45 53 a) Compute Karl Pearson’s correlation coefficient between Advertising Expenditure and Sales. b) Obtain the regression equation of Sales (
) on Advertising Expenditure ( ). c) Estimate the expected sales volume if the advertising budget is increased to Rs. 30 Lakh. View model solution
Solution:
Let
= Advertising Expenditure (Lakh Rs.) and = Sales Volume (Crore Rs.). Number of observations . Calculation Table:
Year 1 10 24 100 576 240 2 12 28 144 784 336 3 15 32 225 1024 480 4 18 40 324 1600 720 5 20 45 400 2025 900 6 25 53 625 2809 1325 Total
Part (a): Karl Pearson’s Correlation Coefficient (
) Numerator:
Denominator:
Interpretation: There exists a very high degree of positive linear correlation (
) between advertising expenditure and sales volume.
Part (b): Regression Equation of
on The regression line of
on is: Where:
Regression equation:
Part (c): Estimation of Sales for
Lakh Rs. Substituting
into the regression model: The estimated sales volume is Rs. 63.52 Crore.
- [10]
From the following price and quantity data, compute Fisher’s Ideal Index Number for the year 2080 taking 2075 as base year, and verify that it satisfies the Time Reversal Test:
Commodity 2075 Price ( ) 2075 Qty ( ) 2080 Price ( ) 2080 Qty ( ) A 20 15 30 20 B 12 20 15 22 C 15 25 20 24 D 25 10 35 12 View model solution
Solution:
Calculation Table:
Comm. A 20 15 30 20 300 450 400 600 B 12 20 15 22 240 300 264 330 C 15 25 20 24 375 500 360 480 D 25 10 35 12 250 350 300 420 Total
Step 1: Fisher’s Ideal Index Number (
) Interpretation: The price level of commodities in 2080 increased by 37.78% compared to the base year 2075.
Step 2: Verification of Time Reversal Test
The Time Reversal Test requires:
Here:
Interchanging 0 and 1:
Now:
Since
, Fisher’s Ideal Index satisfies the Time Reversal Test. - [10]
Fit a straight-line trend equation by the method of least squares for the annual turnover (in Million Rs.) of an export trading firm from 2074 to 2080, and forecast the turnover for the years 2081 and 2082:
Year (BS) 2074 2075 2076 2077 2078 2079 2080 Turnover ( ) 45 52 58 65 70 82 90 View model solution
Solution:
Number of years
(odd). Let middle year be origin ( ). Straight-line trend equation: Since
: Calculation Table:
Year Turnover ( ) Trend Values ( ) 2074 45 9 2075 52 4 2076 58 1 2077 65 0 0 2078 70 1 2079 82 4 2080 90 9 Total
Step 1: Compute Parameters
and $ Straight-Line Trend Equation:
Step 2: Forecast for 2081 and 2082
-
For Year 2081:
$ -
For Year 2082:
$
The projected turnovers are Rs. 95.71 Million for 2081 and Rs. 103.14 Million for 2082.
-
- [10]
A manufacturing company produces electronic components using three automated assembly machines
and . Machine produces 30%, produces 45%, and produces 25% of the total output. Historical data indicates that 2% of items produced by , 3% of items produced by , and 4% of items produced by are defective. a) What is the probability that a randomly chosen component from the warehouse is defective? b) If a randomly chosen component is found to be defective, what is the probability that it was produced by Machine
? View model solution
Solution:
Let
denote the events that a component is manufactured by Machine and respectively. Let denote the event that a component is defective. Given prior probabilities:
Given conditional probabilities of defectiveness:
Part (a): Total Probability of a Defective Component
By the Theorem of Total Probability:
The probability that a randomly selected component is defective is 0.0295 (2.95%).
Part (b): Posterior Probability
using Bayes’ Theorem By Bayes’ Theorem:
Given that the component is defective, the probability that it was manufactured by Machine
is 0.4576 (45.76%). - [10]
An assessment of two sales teams, Team Alpha and Team Beta, yielded the following statistical summary for monthly sales revenue (in Lakh Rs.):
Parameter Team Alpha Team Beta Number of Sales Personnel ( ) 50 60 Mean Monthly Sales ( ) 120 115 Standard Deviation ( ) 15 18 a) Which sales team generates greater total monthly sales revenue? b) Which sales team exhibits greater consistency (uniformity) in sales performance?
View model solution
Solution:
Given:
- Team Alpha:
- Team Beta:
Part (a): Comparison of Total Monthly Sales Revenue
- Team Alpha:
(Rs. 60 Crore) - Team Beta:
(Rs. 69 Crore)
Conclusion: Team Beta generates greater total monthly sales revenue (Rs. 6,900 Lakh vs Rs. 6,000 Lakh).
Part (b): Comparison of Consistency (Coefficient of Variation)
Consistency/uniformity is measured by the Coefficient of Variation (
): -
For Team Alpha:
-
For Team Beta:
Interpretation: A lower
indicates greater consistency and less relative variability. Since , Team Alpha exhibits greater consistency and uniformity in sales performance compared to Team Beta. - Team Alpha:
Group 'C'
Analytical / Comprehensive Answer Questions. Attempt any TWO questions.
[2 × 15 = 30]- [15]
The examination scores of 1,000 students in a nationwide business management scholarship test are found to be normally distributed with a mean score (
) of 65 marks and a standard deviation ( ) of 12 marks. a) What percentage of students scored above 80 marks? b) How many students scored between 50 and 75 marks? c) What is the minimum score required to qualify for the top 5% merit scholarship awards?
View model solution
Solution:
Let
denote the scholarship test scores. , Total students . Standard normal variate: .
Part (a): Percentage of students scoring above 80 marks (
) For
: From standard normal area tables, area between
and is . Result: 10.56% of students scored above 80 marks (approximately 106 students).
Part (b): Number of students scoring between 50 and 75 marks (
) - For
: - For
:
From normal tables:
- Area for
is - Area for
is $
Expected Number of Students:
Approximately 691 students scored between 50 and 75 marks.
Part (c): Minimum score for Top 5% Merit Scholarship
Top 5% implies area in the right tail is
. Therefore, area between and critical value is: From standard normal tables, the
-value corresponding to an area of is: Using the transformation
: Result: A candidate must score a minimum of 84.74 marks (or at least 85 marks) to qualify for the top 5% merit scholarship awards.
- For
- [15]
The following table presents the weekly output (in units) and total production costs (in Thousand Rs.) of 8 manufacturing shifts:
Shift 1 2 3 4 5 6 7 8 Output Units ( ) 20 30 40 50 60 70 80 90 Total Cost ( ) 100 120 150 180 200 240 260 310 a) Obtain both regression equations:
on and on . b) Compute the coefficient of determination ( ) and explain its business significance. c) Estimate the total cost if output is 110 units, and estimate the expected output if total production budget is restricted to Rs. 220 Thousand. View model solution
Solution:
Let
= Output units and = Total Cost (Thousand Rs.). . Calculation Table:
Shift 1 20 100 400 10000 2000 2 30 120 900 14400 3600 3 40 150 1600 22500 6000 4 50 180 2500 32400 9000 5 60 200 3600 40000 12000 6 70 240 4900 57600 16800 7 80 260 6400 67600 20800 8 90 310 8100 96100 27900 Total
Step 1: Means and Regression Coefficients
Step 2: Part (a) Regression Equations
-
Regression Equation of
on : -
Regression Equation of
on :
Step 3: Part (b) Coefficient of Determination (
) Significance:
signifies that 98.96% of the total variation in production costs is explained by variations in output volume, indicating an exceptionally robust, near-perfect predictive fit. Only 1.04% of variation is attributable to random unexplained factors.
Step 4: Part (c) Predictions
-
Cost for Output
units: -
Output for Budget
Thousand Rs.:
-
- [15]
The following table gives the frequency distribution of weekly overtime hours worked by 100 technicians in two engineering workshops, Plant A and Plant B:
Overtime Hours 0–10 10–20 20–30 30–40 40–50 50–60 Plant A Technicians ( ) 12 18 35 20 10 5 Plant B Technicians ( ) 8 15 28 26 15 8 a) Determine which plant has a higher average overtime workload. b) Which plant exhibits greater variability (dispersion) in overtime distribution? c) Calculate the combined standard deviation of overtime hours across both plants.
View model solution
Solution:
Let mid-point
: - 0–10:
- 10–20:
- 20–30:
- 30–40:
- 40–50:
- 50–60:
Let assumed mean
, step length . . Calculation Table:
Class 0–10 5 12 48 8 32 10–20 15 18 18 15 15 20–30 25 35 0 0 28 0 0 30–40 35 20 20 26 26 40–50 45 10 40 15 60 50–60 55 5 45 8 72 Total
Step 1: Mean and Standard Deviation for Plant A
Step 2: Mean and Standard Deviation for Plant B
Step 3: Evaluations
- Part (a): Higher Average Overtime:
Since
, Plant B has a higher average overtime workload. - Part (b): Greater Variability:
Since
, Plant A exhibits greater relative variability (less uniformity) in its overtime distribution.
Step 4: Part (c) Combined Standard Deviation (
) Combined Mean:
Deviations:
Combined Variance (
): The combined standard deviation across both plants is 13.35 hours.
- 0–10: