MS 95 Research Methodology for Management Decisions Test Paper

MBA - Master of Business Administration

Note: Answer any 3 questions from section A. Section B is compulsory.

1. A local newspaper wants to ascertain the extent to which the inclusion of a daily stock market page might increase its circulation. Which type of data collection would you like to propose for this? Explain the unit of analysis and the population size for the data collection. Prepare at least eight questions in a questionnaire to collect the pertinent information.

2. What is meant by "representativeness" in a sample? Explain in what sense a simple random sample is representative of the population. Also distinguish between simple random sampling and convenience sampling.

3. The arrival pattern of customers at a super-market is given below. The manager noted down the arrival sequence of customers sex-wise (M and W denote man and woman). Find out the randomness of the arrival pattern of customers by runs test. Formulate the hypothesis and test it at 5% level of significance (alpha). The Z value is 1.96 at alpha=0.05. The sequence is

MM WWW M WW MM WWWW MMM WW MM W MMM WWW MM WW MM M WW M WW MM WW

4. Under what circumstances you would recommend the following:

i) Non probability sampling
ii) Regression analysis
iii) Chi-square test

5. What is the role of models in managerial decision-making? Briefly review the different types of models alongwith their characteristics. How is model validation done?

Section B

6. Read the case carefully and anser the question at the end:

Loveland computers was running its production line more often to assemble computers from readily available components as the demand for high-end computers grew. Walter Azko was very clear that this was just assembly, not "real manufacturing." He often joked that the only part that was unique to Loveland computers was the plastic base to the keyboard- it was distinguished by the Loveland logo (an outline of the front range of the Rocky Mountains, just as it was visible from the window in Walt's office). The base came in two parts that snapped together. Now that was the next problem referred to Lee Azko. Nancy Rainwater, the production supervisor, explained her frustrations to LEE.

"When we started assembling this model last summer, the keyboard bases seemed to go together just fine. Now we have to reject a lot of them because of little bugs that hold the top to the bottom break off when the operator tries to snap them together. When that happens, we have to throw out both pieces. We don't have any way to recycle that kind of plastic, and it doesn't seem right to e sending all that to the landfill- not to mention what it must be doing to our costs.

"I've talked to purchasing and I had Tyronza Wilson inspect the bases when they're delivered. The lugs measure exactly within specs, and the plastics company tat makes them for us did some lab work. They say there's nothing wrong with the plastics they are using.

"I noticed that we ad more breakages early in the morning - so I wondered it just happened because people were being careless on the line. I even wondered if it was because the employees weren't properly trained; but the fact is these people are more experienced now than they were last summer-we really haven't had much turnover.

"Tyronza wondered if it isn't happening because the plastic's too cold. That might fit with more defects in the winter. But the warehouse has a couple of heaters, so I'm not sure if that's right. And I can hardly walk around with a thermometer and check out the temperatures of each set of base parts before sending them down the line, can I?"

"May be there's another way to figure this out." Lee said, remembering that it had been quite simple to get weather statistics from the National Weather Service." You did record the number of bases thrown away for each day you ran the production line, didn't you?"

Question

How should Lee investigate the relationship between the weather and the problem with the plastic bases?

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