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1. Subject Code: PQT1G
Paper: QUANTITATIVE TECHNIQUE II
Specific Instructions:
 Answer all the four questions.
 Marks allotted 100. Each Question carries equal marks.
General Instructions:
 The Student should submit this assignment in the handwritten form (not in the typed format)
 The Student should submit this assignment within the time specified by the exam dept
 Each Question mentioned in this assignment should be answered within the word limit specified
 The student should only use the Rule sheet papers for answering the questions.
 The student should attach this assignment paper with the answered papers.
 Failure to comply with the above Five instructions would lead to rejection of assignment.
_____________________________________________________
Question No 1
(a) An investor buys Rs. 1200 worth of shares in a company each month. During the
first five month he bought the shares at a price of Rs. 10, Rs. 12, Rs. 15, Rs.20 and
Rs. 24 per share. After 5 months what is the average price paid for the shares by
him?
Answer

2. (b) Daily rated employee in SLM- Devilal , an engineering firm, earn Rs 66 per day. The
workers estimate that on the average they turn out 30 pieces per day with a standard
deviation of 6 pieces per day . Under a suggested piece rate plan how much will they
ask per piece if they wish to earn more than their present daily income 90 % of the
time?
Answer
Question No 2
a) Calculate Karl-Pearson’s coefficient of correlation from the following Index number
and interpret it :[r = 0.85]
Wages
Cast of
living
100
98
101
99
103
99
102
97
104
95
99
02
97
95
98
94
96
91
(b) You are given below the following information about advertisement and sale, the
coefficient of correlation is = + 0.8:
Mean
Advertising Expenditure
(Rs. crores)(X)
20
Sales
(Rs. Crore)(Y)
120

3. S.D
5
i.
ii.
iii.
25
Calculate two regression equations.
Estimate the likely sales for an advertising expenditure of Rs. 25 lakhs.
What should be the advertisement expenditure for attaining sales target of Rs. 150
crores?
Question No 3
(a) Construct an appropriate index for purposes of comparison from the following data:
Commodity
Year
2004
2005
A
Price
4
10
A
Qty.
50
40
B
Price
3
8
B
Qty.
10
8
C
Price
2
4
C
Qty.
5
4
(b) A Machine is supposed to drill holes with a diameter of 1 inch. In fact , the diameters are
normally distributed with a mean of 1.0 inches and a standard deviation of 0.02 inch. If
there is a tolerance of 0.02 inch, the holes should be between 0.99 and 1.02 inches. What
percentage of the holes drilled are within tolerance limits?
Question No 4
(a) Two methods of performing a certain task in a manufacturing plant, method A and
method B, are under study . The variable of interest is length of time required to
perform the task . It is known that the variance of method A is 9 minutes squared
and the variance of method B is 12 minutes squared. A simple random sample of 35
employees performed the task by method A and independent simple random sample
of 35 employees performed the task by method B. The average time required by the
first group to complete the task was 25 minutes and the average time for the second
group was 23 minutes. What is the probability of observing difference this large ,if
there is no difference in the true average length of time required to perform the
task?
(b) An auto company decided to introduce a new six cylinder car whose mean petrol
consumption is claimed to be lower than that of the existing auto engine. It was
found that the mean petrol consumption for the 50 cars was 14 km per liter with a
standard deviation of 3.5 km per liter. Test for the company at 5% level of
significance, whether the claim , the new car petrol consumption is 13.5 Km per liter
on the average is acceptable.