Here are the key topics and some sample questions and answers for the Business
Statistics subject for a BCom 3rd year exam.
Key Topics:
1. Measures of Central Tendency:
a. Mean
b. Median
c. Mode
2. Measures of Dispersion:
a. Range
b. Quartile deviation
c. Mean deviation
d. Standard deviation and variance
3. Probability:
a. Probability theory and concepts
b. Conditional probability
c. Bayes’ theorem
4. Correlation and Regression:
a. Simple correlation
b. Regression analysis (simple linear regression)
c. Interpretation of regression equations
5. Index Numbers:
a. Methods of construction of index numbers
b. Uses of index numbers
6. Time Series Analysis:
a. Components of time series
b. Methods for calculating trend (e.g., moving averages)
c. Seasonal variations
7. Sampling Methods:
a. Types of sampling (random, stratified, systematic)
b. Sampling distribution and its properties
8. Hypothesis Testing:
a. Null and alternative hypothesis
b. Z-test, t-test, chi-square test
c. Confidence intervals
Sample Questions and Answers:
1. Measures of Central Tendency:
Q: Define the mean, median, and mode. What is the relationship between these measures
in a symmetrical distribution?
A:
• Mean is the sum of all values divided by the number of values.
Mean=ΣXN\text{Mean} = \frac{\Sigma X}{N}
• Median is the middle value when data is arranged in ascending or descending
order.
• Mode is the value that appears most frequently in a data set.
In a symmetrical distribution, the mean, median, and mode are equal.
2. Measures of Dispersion:
Q: Calculate the standard deviation for the following data: 5, 8, 10, 12, 15.
A:
• First, find the mean:
Mean=5+8+10+12+155=10\text{Mean} = \frac{5+8+10+12+15}{5} = 10
• Now, calculate the squared deviations from the mean:
(5−10)2=25,(8−10)2=4,(10−10)2=0,(12−10)2=4,(15−10)2=25(5 - 10)^2 = 25, \quad
(8 - 10)^2 = 4, \quad (10 - 10)^2 = 0, \quad (12 - 10)^2 = 4, \quad (15 - 10)^2 = 25
• Sum of squared deviations: 25+4+0+4+25=5825 + 4 + 0 + 4 + 25 = 58
• Variance:
Variance=585=11.6\text{Variance} = \frac{58}{5} = 11.6
• Standard deviation:
SD=11.6=3.41\text{SD} = \sqrt{11.6} = 3.41
3. Probability:
Q: A die is rolled. What is the probability of getting an even number?
A:
• The possible outcomes for a die are: 1, 2, 3, 4, 5, 6.
• The even numbers are: 2, 4, 6.
• Therefore, the probability of getting an even number is:
P(even)=36=12P(\text{even}) = \frac{3}{6} = \frac{1}{2}
4. Correlation and Regression:
Q: What is the difference between correlation and regression analysis?
A:
• Correlation measures the strength and direction of the linear relationship between
two variables.
r=n(ΣXY)−(ΣX)(ΣY)[nΣX2−(ΣX)2][nΣY2−(ΣY)2]r = \frac{n(\Sigma XY) - (\Sigma
X)(\Sigma Y)}{\sqrt{[n\Sigma X^2 - (\Sigma X)^2][n\Sigma Y^2 - (\Sigma Y)^2]}}
• Regression analysis predicts the value of one variable based on the value of
another. It helps to establish an equation for the relationship between the variables
(e.g., Y = a + bX).
5. Index Numbers:
Q: What are index numbers, and what are their uses?
A:
• Index numbers are statistical measures that show relative changes in variables
over time or across regions. They are typically used for tracking changes in prices,
quantities, or economic indicators.
Uses:
o Measurement of inflation.
o Comparison of economic data over time.
o Guiding economic policies.
6. Time Series Analysis:
Q: How do you calculate the moving average for a time series?
A:
• Moving Average smooths out short-term fluctuations to identify trends over time.
• For a 3-period moving average, calculate the average of every three consecutive
values in the time series.
7. Sampling Methods:
Q: What is the difference between random sampling and stratified sampling?
A:
• Random sampling: Each individual in the population has an equal chance of being
selected.
• Stratified sampling: The population is divided into subgroups (strata), and a
random sample is taken from each subgroup.
8. Hypothesis Testing:
Q: State the steps involved in hypothesis testing.
A:
1. State the hypotheses:
a. Null hypothesis (H0H_0): There is no effect.
b. Alternative hypothesis (H1H_1): There is an effect.
2. Select the significance level (α), usually 0.05 or 0.01.
3. Choose the test statistic (e.g., z-test, t-test).
4. Compute the test statistic using the sample data.
5. Make a decision:
a. If the p-value < α, reject H0H_0.
b. If the p-value > α, fail to reject H0H_0.
These notes and questions should help you with studying for your Business Statistics
exam. Let me know if you need more details or additional examples!
Here’s a concise and summarized version of Business Statistics for BCom 3rd year,
designed for easy study and revision. This guide includes key points, formulas, and sample
questions with answers that should help you prepare effectively.
1. Introduction to Statistics
Key Points:
• Statistics: A field of study that deals with data collection, organization, analysis,
interpretation, and presentation.
• Descriptive Statistics: Summarizes data using measures like mean, median,
mode, and measures of dispersion.
• Inferential Statistics: Uses sample data to make predictions or inferences about a
population.
Sample Question:
1. Define statistics and explain its significance in business.
a. Answer: Statistics helps in decision-making, forecasting, market analysis,
and identifying trends.
2. Measures of Central Tendency
Key Points:
• Mean: The average of all data points.
o Formula: Mean=∑XN\text{Mean} = \frac{\sum X}{N}
• Median: The middle value when data is arranged in order.
• Mode: The most frequent value in the data.
Sample Question:
1. Calculate the mean, median, and mode for the data: 5, 10, 12, 12, 15, 18.
a. Answer:
i. Mean: 5+10+12+12+15+186=12\frac{5+10+12+12+15+18}{6}
= 12
ii. Median: Middle values are 12 and 12. Median = 12
iii. Mode: 12 (appears most frequently).
3. Measures of Dispersion
Key Points:
• Range: The difference between the highest and lowest values.
o Formula: Range=Xmax−Xmin\text{Range} = X_{\text{max}} -
X_{\text{min}}
• Variance: Measures the average squared deviation from the mean.
o Formula: Variance=∑(X−μ)2N\text{Variance} = \frac{\sum (X -
\mu)^2}{N}
• Standard Deviation: The square root of variance.
o Formula: σ=Variance\sigma = \sqrt{\text{Variance}}
Sample Question:
1. Find the standard deviation for the data: 5, 7, 8, 10.
a. Answer:
i. Mean = 5+7+8+104=7.5\frac{5+7+8+10}{4} = 7.5
ii. Variance =
(5−7.5)2+(7−7.5)2+(8−7.5)2+(10−7.5)24=2.25\frac{(5-7.5)^2 +
(7-7.5)^2 + (8-7.5)^2 + (10-7.5)^2}{4} = 2.25
iii. Standard Deviation = 2.25=1.5\sqrt{2.25} = 1.5
4. Probability Theory
Key Points:
• Probability: The likelihood of an event occurring, ranging from 0 to 1.
o Formula: P(E)=Number of favorable outcomesTotal number of
outcomesP(E) = \frac{\text{Number of favorable outcomes}}{\text{Total
number of outcomes}}
• Addition Theorem: P(A∪B)=P(A)+P(B)−P(A∩B)P(A \cup B) = P(A) + P(B) - P(A
\cap B)
• Multiplication Theorem: P(A∩B)=P(A)×P(B∣A)P(A \cap B) = P(A) \times P(B|A)
Sample Question:
1. What is the probability of drawing a red ball from a bag with 5 red balls and 3
blue balls?
a. Answer: P(red)=55+3=58P(\text{red}) = \frac{5}{5 + 3} = \frac{5}{8}
5. Sampling and Sampling Distributions
Key Points:
• Sampling: The process of selecting a subset from a population.
• Types of Sampling: Simple random, stratified, cluster, systematic.
• Sampling Distribution: Distribution of a sample statistic (e.g., sample mean) over
many samples.
Sample Question:
1. What is the difference between population and sample?
a. Answer: A population includes all members of a group, while a sample is a
subset of the population.
6. Index Numbers
Key Points:
• Index Numbers: Measures the relative change in a variable over time.
• Laspeyres Index: Base period quantities are used in the formula.
o Formula: IL=∑P1Q0∑P0Q0×100I_L = \frac{\sum P_1 Q_0}{\sum P_0 Q_0}
\times 100
• Paasche Index: Current period quantities are used.
o Formula: IP=∑P1Q1∑P0Q1×100I_P = \frac{\sum P_1 Q_1}{\sum P_0 Q_1}
\times 100
Sample Question:
1. Calculate the Laspeyres index for the given data:
a. Price in base year: P0=50P_0 = 50, P1=55P_1 = 55
b. Quantity in base year: Q0=10Q_0 = 10, Q1=12Q_1 = 12
c. Answer: IL=(55×10)(50×10)×100=110I_L = \frac{(55 \times 10)}{(50
\times 10)} \times 100 = 110
7. Correlation and Regression
Key Points:
• Correlation: Measures the relationship between two variables.
o Pearson's coefficient formula:
r=n(∑XY)−(∑X)(∑Y)[n∑X2−(∑X)2][n∑Y2−(∑Y)2]r = \frac{n(\sum XY) -
(\sum X)(\sum Y)}{\sqrt{[n\sum X^2 - (\sum X)^2][n\sum Y^2 - (\sum
Y)^2]}}
• Regression: Predicts one variable based on another.
o Simple Linear Regression: Y=a+bXY = a + bX
Sample Question:
1. Find the correlation coefficient for the data:
X Y
1 2
2 4
3 6
4 8
a. Answer: r=1r = 1 (Perfect positive correlation).
8. Time Series Analysis
Key Points:
• Time Series: Data points indexed in time order.
• Components of Time Series: Trend, seasonal variation, cyclical variation, and
irregular variation.
• Moving Average: Used for smoothing time series data.
o Formula: MAt=Xt−1+Xt+Xt+13MA_t = \frac{X_{t-1} + X_t + X_{t+1}}{3}
Sample Question:
1. Calculate a 3-period moving average for the data:
Sale
Year
s
2021 100
2022 120
2023 140
a. Answer: MA2022=100+120+1403=120MA_{2022} = \frac{100 + 120 +
140}{3} = 120
9. Hypothesis Testing
Key Points:
• Null Hypothesis (H₀): No significant effect.
• Alternative Hypothesis (H₁): There is a significant effect.
• Type I Error: Rejecting H₀ when it is true.
• Type II Error: Accepting H₀ when it is false.
Sample Question:
1. Perform a t-test to test if the average salary is greater than ₹50,000 for the data:
52,000, 54,000, 51,000, 48,000, 49,000.
a. Answer: Use the t-test formula and compare the calculated value with the
critical value.
10. Analysis of Variance (ANOVA)
Key Points:
• ANOVA: A technique to compare the means of multiple groups.
• F-test: The ratio of variance between groups to variance within groups.
o Formula: F=Variance between groupsVariance within groupsF =
\frac{\text{Variance between groups}}{\text{Variance within groups}}
Sample Question:
1. Conduct a one-way ANOVA to test if there is a significant difference in average
sales between three regions (North, South, West).
a. Answer: Calculate the F-statistic and compare with the critical value from
the F-distribution table.
Sample Exam Structure (90 Marks):
• Section A (20 marks): Short answer questions (4 questions × 5 marks each)
• Section B (30 marks): Practical problems (3 questions × 10 marks each)
• Section C (40 marks): Long answer questions (2 questions × 20 marks each)
This summarized format should help you cover the major topics efficiently and practice
solving problems for your exam.
