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    Topics: Descriptive Statistics and Probability: Name of Company Measure X

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    Simarjeet Singh
    The document discusses descriptive statistics and probability topics. It includes examples calculating the mean, variance, and standard deviation of business performance data. It also includes examples analyzing box plots and histograms, including identifying outliers and skewness. Examples on probability include calculating the probability of multiple misdirected phone calls and analyzing the probability distribution and risk of a business venture.

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    Topics: Descriptive Statistics and Probability: Name of Company Measure X

    Uploaded by

    Simarjeet Singh
    83 views4 pages
    The document discusses descriptive statistics and probability topics. It includes examples calculating the mean, variance, and standard deviation of business performance data. It also includes examples analyzing box plots and histograms, including identifying outliers and skewness. Examples on probability include calculating the probability of multiple misdirected phone calls and analyzing the probability distribution and risk of a business venture.

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    The document discusses descriptive statistics and probability topics. It includes examples calculating the mean, variance, and standard deviation of business performance data. It also includes examples analyzing box plots and histograms, including identifying outliers and skewness. Examples on probability include calculating the probability of multiple misdirected phone calls and analyzing the probability distribution and risk of a business venture.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    83 views4 pages

    Topics: Descriptive Statistics and Probability: Name of Company Measure X

    Uploaded by

    Simarjeet Singh
    The document discusses descriptive statistics and probability topics. It includes examples calculating the mean, variance, and standard deviation of business performance data. It also includes examples analyzing box plots and histograms, including identifying outliers and skewness. Examples on probability include calculating the probability of multiple misdirected phone calls and analyzing the probability distribution and risk of a business venture.

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    Topics: Descriptive Statistics and Probability

    1. Look at the data given below. Plot the data, find the outliers and find out μ , σ , σ 2.

    Name of company Measure X


    Allied Signal 24.23%
    Bankers Trust 25.53% ANS: Mean = 33.2713
    General Mills 25.41% Variance = 287.1330
    Standard Deviation =
    ITT Industries 24.14%
    16.945
    J.P.Morgan & Co. 29.62%
    Lehman Brothers 28.25%
    Marriott 25.81%
    MCI 24.39%
    Merrill Lynch 40.26%
    Microsoft 32.95%
    Morgan Stanley 91.36%
    Sun Microsystems 25.99%
    Travelers 39.42%
    US Airways 26.71%
    Warner-Lambert 35.00%

    2.

    Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)
    Answer the following three questions based on the box-plot above.
    (i) What is inter-quartile range of this dataset? (please approximate the numbers) In one
    line, explain what this value implies.
    ANS: The inter-quartile of this dataset is 5 to 13.
    The inter-quartile consists of 50% of total values
    and the Median value is also present between the
    Inter-quartile.
    (ii) What can we say about the skewness of this dataset?
    ANS: The graph shows positive skewness
    (iii) If it was found that the data point with the value 25 is actually 2.5, how would the new
    box-plot be affected?
    ANS: Then there will be no outliers present in the
    graph.

    3.

    Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)
    Answer the following three questions based on the histogram above.
    (i) Where would the mode of this dataset lie?
    ANS:5,6,7,8 with frequency of 20.
    (ii) Comment on the skewness of the dataset.
    ANS: Positive Skewness
    (iii) Suppose that the above histogram and the box-plot in question 2 are plotted for the
    same dataset. Explain how these graphs complement each other in providing
    information about any dataset.
    ANS: Both graphs represent a single outlier at
    25. Also, both graphs show a positive skewness.
    Both graphs show the range from 0 to 20.
    Box plot also shows the median value.

    4. AT&T was running commercials in 1990 aimed at luring back customers who had switched to
    one of the other long-distance phone service providers. One such commercial shows a
    businessman trying to reach Phoenix and mistakenly getting Fiji, where a half-naked native on a
    beach responds incomprehensibly in Polynesian. When asked about this advertisement, AT&T
    admitted that the portrayed incident did not actually take place but added that this was an
    enactment of something that “could happen.” Suppose that one in 200 long-distance telephone
    calls is misdirected. What is the probability that at least one in five attempted telephone calls
    reaches the wrong number? (Assume independence of attempts.)

    Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)
    ANS:0.025

    5. Returns on a certain business venture, to the nearest $1,000, are known to follow the following
    probability distribution
    x P(x)
    -2,000 0.1
    -1,000 0.1
    0 0.2
    1000 0.2
    2000 0.3
    3000 0.1

    (i) What is the most likely monetary outcome of the business venture?
    ANS:
    (ii) Is the venture likely to be successful? Explain
    ANS: Yes, as positive dollar numbers have higher
    probability.
    (iii) What is the long-term average earning of business ventures of this kind? Explain
    ANS:
    (iv) What is the good measure of the risk involved in a venture of this kind? Compute this
    measure
    ANS: There can be losses too.

    Questions referred to from Aczel A., Sounderpandian J., Complete Business Statistics (7ed.)

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