MB 0040 Statistics For Management MBA -1st Semester , assignment set -2 1.

n =6 p = 2/6 = 1/3 q = 1-1/3 = 2/3 r=1 N = 726 Probability for getting exactly 1 leak = P( x => 1) = c (n1r) Pr q n-r = C (6, 1) . (1/3)1 .(2/3)6-1 6 .1/3. 32/243 = 192/729 The expected no. of packets to contain exactly one leaking sachet is = N. [ P ( X=1) ] = 726 *192/729 = 191

2.

The standard error of a method of measurement or estimation is the standard deviation of the sampling distribution associated with the estimation method. The term may also be used to refer to an estimate of that standard deviation, derived from a particular sample used to compute the estimate. For example, the sample mean is the usual estimator of a population mean. However, different samples drawn from that same population would in general have different values of the sample mean. The standard error of the mean (i.e., of using the sample mean as a method of estimating the population mean) is the standard deviation of those sample means over all possible samples (of a given size) drawn from the population. Secondly, the standard error of the mean can refer to an estimate of that standard deviation, computed from the sample of data being analyzed at the time. The term standard error is derived[citation needed] from the fact that, as long as the estimator is unbiased, the standard deviation of the error (the difference between the estimate and the true value) is the same as the standard deviation of the estimates themselves; this is true since the standard deviation of the difference

MB 0040 Statistics For Management MBA -1st Semester , assignment set -2 between the random variable and its expected value is equal to the standard deviation of a random variable itself. In many practical applications, the true value of the standard deviation is usually unknown. As a result, the term standard error is often used to refer to an estimate of this unknown quantity. In such cases it is important to be clear about what has been done and to attempt to take proper account of the fact that the standard error is only an estimate. Unfortunately, this is not often possible and it may then be better to use an approach that avoids using a standard error, for example by using maximum likelihood or a more formal approach to deriving confidence intervals. One well-known case where a proper allowance can be made arises where the Student's t-distribution is used to provide a confidence interval for an estimated mean or difference of means. In other cases, the standard error may usefully be used to provide an indication of the size of the uncertainty, but its formal or semiformal use to provide confidence intervals or tests should be avoided unless the sample size is at least moderately large. Here "large enough" would depend on the particular quantities being analyzed. 3. Standard error of mean (i) When standard deviation of the population is know S.E. x =

P N

S.E. x refers to the standard error of the mean

p standard deviation of the population

N = number of observation x= 1.4 6.2

1.4 2.48

0.5645 2

MB 0040 Statistics For Management MBA -1st Semester , assignment set -2

S .E.x =

sample N

70 6.2

= 4.

70 =28.22 2.48

Null Hypothesis Ho : u = u1 (two tailed test ) Alternate Hypothesis HA : u u1 Level of significance 5% , Z1 = 1.96 u = 300, u1 = 201.3 , = 5 , n = 150 Test = u-u1/ /n /n = 5/150 = .03 Test Z2 300-201.3 / .03 = 98.7/ .03 = 3290 Since Z2 ( 3290) > Z1(1.96) Machine is not functioning properly .

5.

1 1 S .E.( P P2 ) = pq + 1 n1 n 2 1200 = 0.6 2000 800 = 0.8 1000 x1 + x2 n1 + n 2 = 1200 + 800 = 0.6666 2000 + 1000

P= 1 P2 = P=

MB 0040 Statistics For Management MBA -1st Semester , assignment set -2 S .E( p1 p2 ) = q = 1 p 0.334 = 3.33 =1.824 1 1 0.666 0.334 + 2000 1000

6.

Managers need an understanding of statistics for four key reasons: to know how to properly present and describe information; to know how to draw conclusions about large populations based only on information obtained from samples; to know how to obtain reliable forecasts and to know how to improve processes . These four reasons form the basis of the structure and content of Statistics for Managers. There is not a single activity undertaken in business or in everyday life that does not involve probability. In many cases the probabilities are consciously considered while in others they may be subconscious. Ordering a particular level of stock for a retail outlet involves a probability consideration of the actual demand for the products. Undertaking tertiary studies involves probability estimations for levels of future income that a degree will produce. In the same way, almost all business decisions depend on probability evaluation. It is important then for you to have an understanding of probability analysis. Having developed our basic feel for probabilities we need to develop an understanding of the key theoretical probability distributions. These enable us to assign probabilities of all potential outcomes for a given situation. This work will enable us to move onto the very important statistical concept called the sampling distribution. Many data sets for the business manager are samples drawn from a wider population. Of interest to the manager are the conclusions that can be drawn about the relevant population characteristic from the sample statistic. We might have some market research that indicates that customer acceptance of a new brand is 30%. The obvious conclusion is that 30% of all potential customers will accept the brand. However, if the sample is not representative of the population then the results may be misleading. Even when the sample is representative, intuitively we would not believe that exactly the same result would hold for the population. We need to understand how samples are taken from population and what affect this 4

MB 0040 Statistics For Management MBA -1st Semester , assignment set -2 has on sample statistics such as the sample mean, sample proportion etc. We will examine sampling theory and the resulting sampling distributions. These are probability distributions for sampling situations. The idea of sampling in business situations and inferential statistics as a method for drawing conclusions about population parameters from sample statistics are both fundamental issues in statistics. The problem with a sample, however, is error. A sample is unlikely to be an accurate representation of the whole population but the concept of the confidence interval can be used to cope with sample error. 1. The six sigma is the best way in managing the business which puts all the data and while using the data and facts in order to have a better solution. This can also be use for the improvement of the customer satisfaction, to reduce the time of the cycle, and can also reduce the defects. a). The control chart for the product and service of Brecker Associates, Inc. First Phase Quantifying Opportunities Second Phase Planning Solutions Third Phase Re-designing Process Fourth Phase Implementing Change Performance Data Planning Solutions b.) The techniques in valuing are the ways that the business is using for the productivity of the business and the process, the cost and the quality. This includes the companys workshop on design, marketing, quality, operations, purchasing and the personnel supplier. In this manner, the first phase is the quantification of the opportunities of Brecker Associates Inc. which use for the quantification and determination of the services and products that the company is producing. For the planning solution which is the second phase is the move or the

MB 0040 Statistics For Management MBA -1st Semester , assignment set -2 way that the company had been notified in order to get solutions for the circumstances in the company. The designing again of the plan is also applicable as for the improvement of the companys services and products. The implementation of the change is applicable after the exact analyzation and detailed outcome of the plan. With the aide of the QFD technique, the requirements for the customer can be determined and can also be quantified. This way, the benefits regarding the improvements had been sought and identified and are being refined for the improvement of the services. These can also lead to the redesign of the products which was the companys phase 3. The redesigned of the specified components or the processes are charged and made an additional tools and quality that had been used for the design in the manufacture, in lean thinking, the design of the assembly, and the reduction set-up. These phases are all dependent on the data planning solutions performance. The processes are in control of the team which only signifies that the results are all at the hands of the team. c). The recommended policy is to have a keen understanding of the team towards the required factors which can improve the performance of the products and services as benefited to the employees and to the company.