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INTERNAL ASSIGNMENT APPLICABLE FOR JUNE 2017 EXAMINATION
COURSE: Business Statistics
1. Sixty per cent of students applying for admissions at NGASCE are female. 30 applications
were received on a particular day. What is the probability that exactly 15 of the
applications will be from females? What is the probability that fewer than 10 of the
applications will be from females? Also, calculate the expected number and variance of the
number of applications from females? (10 marks)
2. The following data represent the number of Pen drives sold per day at a local computer
shop and their daily average sales prices after bargain. (10 marks)
Price of each pen drive
(x)
Units Sold
(y)
INR 340 3
Develop a least-squares regression line and explain what the slope of the line indicates.
Compute the coefficient of determination and comment on the strength of relationship
between x and y.
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3. The growth in bad-debt expense for Chadha and Chadha Company over the last 20 years
is as follows.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
0.11 0.09 0.08 0.08 0.1 0.11 0.12 0.1 0.07 0.09
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0.08 0.05 0.04 0.08 0.5 0.01 0.4 0.03 0.11 0.13
a) With the help of different statistical tools discuss the financial health of the company. (5
Marks)
b) Assume that you are a branch manager with a leading bank and if the Chadha and
Chadha Company’s Managing Director approaches you with a funding request for its

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expansion plan, what will be your decision? Justify your decision based on your statistical
analysis.
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