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May 2026 term · Business Analytics · BSMS2002

Business Analytics Quiz 1: 19 July 2026 (May 2026 term)

The IIT Madras BS Business Analytics (Business Analytics) Quiz 1 paper sat on 19 Jul 2026, in the May 2026 term: 19 questions for 24 marks in 120 minutes. Every question is below with its answer. Take it as a timed mock test to be marked, or read it through first.

Questions
19
Marks
24
Duration
120 min
Written
14
MCQ
3
MSQ
2
Take as mock testPractise with answers

Updated

Official paper: Business Analytics Indian Institute Of Technology, Madras - Bs In Data Science And Applications 16 Jul 26 · No negative marking.

Question 1

+1.5 marksWritten answer

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the past six-months is captured for various prices in Table-1. If the relationship between the price and demand is modelled as a simple linear regression, then answer the given sub-questions

Table-1: Price-Demand Data

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the pa

What is the market size for the product? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 2

+1.5 marksWritten answer

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the past six-months is captured for various prices in Table-1. If the relationship between the price and demand is modelled as a simple linear regression, then answer the given sub-questions

Table-1: Price-Demand Data

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the pa

What is the satiating price for the provided data? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 3

+1 markWritten answer

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the past six-months is captured for various prices in Table-1. If the relationship between the price and demand is modelled as a simple linear regression, then answer the given sub-questions

Table-1: Price-Demand Data

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the pa

At a price of Rs. 22.50, what is the elasticity? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 4

+1 markOne correct option

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the past six-months is captured for various prices in Table-1. If the relationship between the price and demand is modelled as a simple linear regression, then answer the given sub-questions

Table-1: Price-Demand Data

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the pa

Based on the value of the elasticity at a price of Rs. 22.50, what can you conclude?

  1. A

    It is an inelastic product demand

  2. B

    It is an elastic product demand

  3. C

    I don’t know what it is but I want marks for this question (Note: This is not the correct answer, so don’t choose it just because it suits your need :P)

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Correct answer

  • A

    It is an inelastic product demand

Question 4 on its own page

Question 5

+1.5 marksWritten answer

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

If the aim is to check if the counts of observations in each category is independent across terms, then what is the value for the expected frequency for the combination “Category-3 and Sep-20”? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 6

+1 markWritten answer

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

If the aim is to check if the counts of observations in each category is independent across terms, then what is the degrees of freedom for the test-statistic? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 7

+1.5 marksOne or more correct options

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

If the aim is to check if the counts of observations in each category is independent across terms and say the value for the computed test statistic is 19.61, then based on Figure-1 what can be concluded? (Choose all that is/are applicable)

Figure-1: Chi-Square Tabulated Values

If the aim is to check if the counts of observations in each category is independent across terms and say the value for

Select all that apply.

  1. A

    At a 95% confidence level, REJECT THE NULL and conclude that the categorical variables ARE INDEPENDENT

  2. B

    At a 95% confidence level, REJECT THE NULL and conclude that the categorical variables ARE NOT INDEPENDENT

  3. C

    At a 95% confidence level, DO NOT REJECT THE NULL and conclude that the categorical variables ARE INDEPENDENT

  4. D

    At a 95% confidence level, DO NOT REJECT THE NULL and conclude that the categorical variables ARE NOT INDEPENDENT

  5. E

    At a 50% confidence level, DO NOT REJECT THE NULL and conclude that the categorical variables ARE INDEPENDENT

  6. F

    At a 50% confidence level, DO NOT REJECT THE NULL and conclude that the categorical variables ARE NOT INDEPENDENT

  7. G

    At a 50% confidence level, REJECT THE NULL and conclude that the categorical variables ARE INDEPENDENT

  8. H

    At a 50% confidence level, REJECT THE NULL and conclude that the categorical variables ARE NOT INDEPENDENT

  9. I

    The p-value for the test is between 0.5 to 0.1 and more towards 0.1

  10. J

    The p-value for the test is between 0.5 to 0.1 and more towards 0.5

  11. K

    The p-value for the test is between 0.95 to 0.9 and more towards 0.9

  12. L

    The p-value for the test is between 0.95 to 0.9 and more towards 0.95

  13. M

    More information is required to compute the p-value

  14. N

    A Typical Category-5 answer: As this was not covered in the course, it should be given open marks. (Note: This is not a correct answer so don’t choose it. You will not be awarded marks if you choose and then try to claim marks through discourse)

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Correct answers

  • C

    At a 95% confidence level, DO NOT REJECT THE NULL and conclude that the categorical variables ARE INDEPENDENT

  • H

    At a 50% confidence level, REJECT THE NULL and conclude that the categorical variables ARE NOT INDEPENDENT

  • I

    The p-value for the test is between 0.5 to 0.1 and more towards 0.1

Question 7 on its own page

Question 8

+1 markWritten answer

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

Say, the goal is to find the distribution of the counts in “Category-4”. If each year is taken as a data point and the assumption is that the counts in Catgeory-4 are distributed as a Poisson, then how many degrees of freedom is present for the computed test statistic (Hint: The last bin in the frequency table is based on the provided sample)?

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Question 9

+2 marksWritten answer

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

Say, the goal is to find the distribution of the counts in “Category-4”. If each year is taken as a data point and the assumption is that the counts in Catgeory-4 are distributed as a Poisson, then what is the expected frequency for the count of “1”?  (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 10

+3 marksWritten answer

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

Say, the goal is to find the distribution of the counts in “Category-4”. If each year is taken as a data point and the assumption is that the counts in Catgeory-4 are distributed as a Poisson, then what is value for the computed test statistic? (Hint: The last bin in the frequency table is based on the provided sample)(Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 11

+1 markOne or more correct options

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every

Say, the goal is to find the distribution of the counts in “Category-4”. If each year is taken as a data point and the assumption is that the counts in Catgeory-4 are distributed as a Poisson, then using Figure-1, based on the computed test statistic which of the following are TRUE (choose all that is/are applicable)

Select all that apply.

  1. A

    Reject the Null Hypothesis

  2. B

    Do Not Reject the Null Hypothesis

  3. C

    The p-value for the test is between 0.5 to 0.1 and more towards 0.1

  4. D

    Insufficient information. Cannot make a conclusion

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Correct answers

  • C

    The p-value for the test is between 0.5 to 0.1 and more towards 0.1

  • D

    Insufficient information. Cannot make a conclusion

Question 11 on its own page

Question 12

+0.5 marksOne correct option

For Figure-3 given below, answer the given sub-questions

Figure-3

For Figure-3 given below, answer the given sub-questions

What does region “A” represent?

  1. A

    Market Size

  2. B

    Latent demand

  3. C

    Consumer Surplus

  4. D

    None of these

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Correct answer

  • B

    Latent demand

Question 12 on its own page

Question 13

+0.5 marksOne correct option

For Figure-3 given below, answer the given sub-questions

Figure-3

For Figure-3 given below, answer the given sub-questions

What does region “B” represent?

  1. A

    Market Size

  2. B

    Latent demand

  3. C

    Consumer Surplus

  4. D

    None of these

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Correct answer

  • C

    Consumer Surplus

Question 13 on its own page

Question 14

+1.5 marksWritten answer

(The following comprehension is purely imaginary) Suppose a factory manufactures products on three machines A, B and C. Suppose 65% of total output comes from machine A, 30% of total output comes from machine B and 5% of total output comes from machine C. From the past data, it is known that 1% of products by machine A are defectives, 2% of products by machine B are defectives and 10% of products by machine C are defectives. Then answer the given sub-questions

What is the probability that the product has come from machine B, given that it is defective? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 15

+1.5 marksWritten answer

(The following comprehension is purely imaginary) Suppose a factory manufactures products on three machines A, B and C. Suppose 65% of total output comes from machine A, 30% of total output comes from machine B and 5% of total output comes from machine C. From the past data, it is known that 1% of products by machine A are defectives, 2% of products by machine B are defectives and 10% of products by machine C are defectives. Then answer the given sub-questions

If the company decides to provide a refund of Rs. 20 for a defective product, then what would be the expected total cost for refund if a total of 1000 products where made? (Note: Enter your answer in decimals rounded to two decimal places. For example, if your answer is “0.245”, enter it as “0.25”)

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Question 16

+1 markWritten answer

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the past six-months is captured for various prices in Table-1. If the relationship between the price and demand is modelled as a simple linear regression, then answer the given sub-questions

Table-1: Price-Demand Data

(The following comprehension is purely imaginary) The data for the demand of a product (in 1000’s of units) over the pa
Show answer

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Question 17

+1 markWritten answer

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every quiz the enrolled learners always raise concerns. These concerns can be grouped into five categories: “Category-1: Not a valid concern- No Correction”, “Category-2: Valid Concern-Minor Correction”, “Category-3: Valid Concern-Major Corrections”, “Catgeory-4: Valid Concern-Open Marks” and “Catgeory-5: Those who claim marks for their misconception”. From the past six terms (Jan-20 to Sep-21), data on the number of requests in each category is captured and presented in Table-2 below.  Given this information, answer the given sub-questions

Table-2: Category-Term Count Data

(The following comprehension is purely imaginary) The BA team is known for their clumsy QP setting. Hence, after every
Show answer

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Question 18

+1 markWritten answer

For Figure-3 given below, answer the given sub-questions

Figure-3

For Figure-3 given below, answer the given sub-questions
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Question 19

+1 markWritten answer

(The following comprehension is purely imaginary) Suppose a factory manufactures products on three machines A, B and C. Suppose 65% of total output comes from machine A, 30% of total output comes from machine B and 5% of total output comes from machine C. From the past data, it is known that 1% of products by machine A are defectives, 2% of products by machine B are defectives and 10% of products by machine C are defectives. Then answer the given sub-questions

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