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QUANTITATIVE METHODS
CASE
1
The bulbs manufactured by a
company gave a mean life of 3000 hours with standard
deviation of 400 hours. If a
bulb is selected at random, what is the probability it will
have a mean life less than 2000
hours?
Question:
1) Calculate the probability.
2) In what situation does one
need probability theory?
3) Define the concept of sample
space, sample points and events in context of probability theory.
4) What is the difference
between objective and subjective probability?
CASE
2
The price P per unit at which a
company can sell all that it produces is given by the
function P(x) = 300 — 4x. The
cost function is c(x) = 500 + 28x where x is the number
of units produced. Find x so
that the profit is maximum.
Question:
1) Find the value of x.
2) In using regression analysis
for making predictions what are the assumptions involved.
3) What is a simple linear
regression model?
4) What is a scatter diagram
method?
CASE STUDY : 3
Mr Sehwag invests Rs 2000 every
year with a company, which pays interest at 10% p.a.
He allows his deposit to
accumulate at C.I. Find the amount to the credit of the person
at the end of 5th year.
Question :
1) What is the Time Value of
Money concept.
2) What do you mean by present
value of money?
3) What is the Future Value of
money.
4) What the amount to be
credited at the end of 5th year.
CASE STUDY : 4
The cost of fuel in running of
an engine is proportional to the square of the speed and is
Rs 48 per hour for speed of 16
kilometers per hour. Other expenses amount to Rs 300
per hour. What is the most
economical speed?
Question:
1) What is most economical
speed?
2) What is a chi-square test?
3) What is sampling and what
are its uses.
4) Is there any alternative
formula to find the value of Chi-square?
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