The IIT Madras BS Business Analytics (Business Analytics) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term: 15 questions for 20 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.
Latent demand in a demand-response curve is the area obtained when?
Price is reduced below the identified optimal price
Price is increased beyond the identified optimal price
The optimal price is increased beyond the maximum available price
Quantity is reduced below the identified optimal quantity
Correct answer
Price is reduced below the identified optimal price
Which of the following distributions is/are Symmetric in nature (choose all that are applicable)?
Standard Normal distribution
Standard Binomial distribution
Uniform distribution
Poisson distribution
Correct answers
Standard Normal distribution
Standard Binomial distribution
Uniform distribution
(The following is a purely imaginary scenario)
An insurance company believes that people can be divided into two classes: “Class-1: Those who are accident prone” and “Class-2: Those who are not accident prone”. The company’s statistics show that an accident-prone person will have an accident at sometime within a fixed 1-year period with probability 0.4, whereas this probability decreases to 0.2 for a person who is not accident prone. It is assumed that 30 percent of the human population is accident prone. Given this information, answer the sub-questions.
What is the probability that a new policyholder will have an accident within a year of purchasing a policy? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 0.26 (accepted within ±0.01)
(The following is a purely imaginary scenario)
An insurance company believes that people can be divided into two classes: “Class-1: Those who are accident prone” and “Class-2: Those who are not accident prone”. The company’s statistics show that an accident-prone person will have an accident at sometime within a fixed 1-year period with probability 0.4, whereas this probability decreases to 0.2 for a person who is not accident prone. It is assumed that 30 percent of the human population is accident prone. Given this information, answer the sub-questions.
Suppose you learn that a new policyholder has an accident within a year of purchasing a policy. Then, what is the probability that the person is accident prone? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 0.46 (accepted within ±0.02)
(The following is a purely imaginary scenario)
An insurance company believes that people can be divided into two classes: “Class-1: Those who are accident prone” and “Class-2: Those who are not accident prone”. The company’s statistics show that an accident-prone person will have an accident at sometime within a fixed 1-year period with probability 0.4, whereas this probability decreases to 0.2 for a person who is not accident prone. It is assumed that 30 percent of the human population is accident prone. Given this information, answer the sub-questions.
The insurance company has to pay an insurance fee of Rs. 10 per accident if the accident happens in the first year. If the company has sold 1000 insurances in total, then how much money (in Rs.) will it expect to pay at the end of the first year for Class-2 people? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “Rs. 1.235”, then enter it as “1.24”)
Correct answer: 1400
(The following is a purely imaginary scenario)
The demand for ice creams at different prices in the supermarket at IITM is specified in Table-1. Given this data, answer the subquestions (Note: For all the sub-questions, round your answer to two decimal places. Eg: If your answer is 10.256, then round it to 10.26)
| Price | Ice-cream Demand |
|---|---|
| 10 | 160 |
| 15 | 140 |
| 20 | 120 |
| 25 | 100 |
| 30 | 80 |
Table-1
If a linear demand-response curve is fit for the data in Table-1, what is the satiating price for ice creams? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 50
(The following is a purely imaginary scenario)
The demand for ice creams at different prices in the supermarket at IITM is specified in Table-1. Given this data, answer the subquestions (Note: For all the sub-questions, round your answer to two decimal places. Eg: If your answer is 10.256, then round it to 10.26)
| Price | Ice-cream Demand |
|---|---|
| 10 | 160 |
| 15 | 140 |
| 20 | 120 |
| 25 | 100 |
| 30 | 80 |
Table-1
If a linear demand-response curve is fit for the data in Table-1, what is the market size for ice creams? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 200
(The following is a purely imaginary scenario)
The demand for ice creams at different prices in the supermarket at IITM is specified in Table-1. Given this data, answer the subquestions (Note: For all the sub-questions, round your answer to two decimal places. Eg: If your answer is 10.256, then round it to 10.26)
| Price | Ice-cream Demand |
|---|---|
| 10 | 160 |
| 15 | 140 |
| 20 | 120 |
| 25 | 100 |
| 30 | 80 |
Table-1
What is the elasticity of the linear demand-response curve, when the price is Rs. 35? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 2.35 (accepted within ±0.05)
(The following is a partially imaginary scenario)
The BA discourse is often cluttered with queries / requests related to solutions for Past Year Question Papers (PYQP). The course instructor, Dr. Milo, had been informing that students need to put in effort to find solutions by searching the discourse. However, the results seem to be disappointing. Therefore, Dr. Milo wanted to do a few basic analytics on discourse behaviour of students. Past student data was collected for the analysis.
Past data was collected for the BA terms in Jan-2022, May-2022, Sep-2022, Jan-2023, May-2023 and Sep-2023. For each term, 150 randomly selected unique student IDs were sampled. Of the 150 student IDs, 75 were “Male” and the remaining were “Female”. The learners in the discourse have either “followed the instructions” or “not followed the instructions” or “have not accessed the discourse at all” (these three are referred to as access categories). Specifically, for the sample data in the different terms (in sequence of earliest term to later term i.e. Jan-2022 to Sep-2023) it was observed that
1. For the Male sample: 30, 20, 35, 35, 45 and 35 had not followed the instructions respectively in each term (i.e 30 male learners had not followed the instructions in Jan-2022 term and so on) 2. For the Male sample: 20, 10, 15, 15, 15 and 10 had not accessed discourse at all respectively in each term (i.e 20 male learners had not accessed discourse at all in Jan-2022 term and so on) 3. For the female sample: 15, 22, 33, 25, 20 and 20 had followed the instructions respectively in each term (i.e 15 female learners had followed the instructions in Jan-2022 term and so on) 4. For the female sample: 30, 20, 25, 25, 25 and 10 had not accessed discourse at all respectively in each term (i.e 30 female learners had not accessed discourse at all in Jan-2022 term and so on) Moreover, Dr. Milo assumes that all learners in the “followed the instructions” category are Uniformly distributed between 4 and 75. A total of 6 bins of equal area are created for performing the appropriate statistical test. Each term is a sample point.
Given this information, answer the sub questions.
What is the probability that a specific term will fall in Bin-4 when performing the hypothesis test to check if Dr. Milo’s assumption that all learners in the “followed the instructions” category are Uniformly distributed? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “0.235”, then enter it as “0.24”)
Correct answer: 0.17 (accepted within ±0.01)
(The following is a partially imaginary scenario)
The BA discourse is often cluttered with queries / requests related to solutions for Past Year Question Papers (PYQP). The course instructor, Dr. Milo, had been informing that students need to put in effort to find solutions by searching the discourse. However, the results seem to be disappointing. Therefore, Dr. Milo wanted to do a few basic analytics on discourse behaviour of students. Past student data was collected for the analysis.
Past data was collected for the BA terms in Jan-2022, May-2022, Sep-2022, Jan-2023, May-2023 and Sep-2023. For each term, 150 randomly selected unique student IDs were sampled. Of the 150 student IDs, 75 were “Male” and the remaining were “Female”. The learners in the discourse have either “followed the instructions” or “not followed the instructions” or “have not accessed the discourse at all” (these three are referred to as access categories). Specifically, for the sample data in the different terms (in sequence of earliest term to later term i.e. Jan-2022 to Sep-2023) it was observed that
1. For the Male sample: 30, 20, 35, 35, 45 and 35 had not followed the instructions respectively in each term (i.e 30 male learners had not followed the instructions in Jan-2022 term and so on) 2. For the Male sample: 20, 10, 15, 15, 15 and 10 had not accessed discourse at all respectively in each term (i.e 20 male learners had not accessed discourse at all in Jan-2022 term and so on) 3. For the female sample: 15, 22, 33, 25, 20 and 20 had followed the instructions respectively in each term (i.e 15 female learners had followed the instructions in Jan-2022 term and so on) 4. For the female sample: 30, 20, 25, 25, 25 and 10 had not accessed discourse at all respectively in each term (i.e 30 female learners had not accessed discourse at all in Jan-2022 term and so on) Moreover, Dr. Milo assumes that all learners in the “followed the instructions” category are Uniformly distributed between 4 and 75. A total of 6 bins of equal area are created for performing the appropriate statistical test. Each term is a sample point.
Given this information, answer the sub questions.
What will be the expected frequency in Bin-2 when performing the hypothesis test to check if Dr. Milo’s assumption that all learners in the “followed the instructions” category are Uniformly distributed? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 1
(The following is a partially imaginary scenario)
The BA discourse is often cluttered with queries / requests related to solutions for Past Year Question Papers (PYQP). The course instructor, Dr. Milo, had been informing that students need to put in effort to find solutions by searching the discourse. However, the results seem to be disappointing. Therefore, Dr. Milo wanted to do a few basic analytics on discourse behaviour of students. Past student data was collected for the analysis.
Past data was collected for the BA terms in Jan-2022, May-2022, Sep-2022, Jan-2023, May-2023 and Sep-2023. For each term, 150 randomly selected unique student IDs were sampled. Of the 150 student IDs, 75 were “Male” and the remaining were “Female”. The learners in the discourse have either “followed the instructions” or “not followed the instructions” or “have not accessed the discourse at all” (these three are referred to as access categories). Specifically, for the sample data in the different terms (in sequence of earliest term to later term i.e. Jan-2022 to Sep-2023) it was observed that
1. For the Male sample: 30, 20, 35, 35, 45 and 35 had not followed the instructions respectively in each term (i.e 30 male learners had not followed the instructions in Jan-2022 term and so on) 2. For the Male sample: 20, 10, 15, 15, 15 and 10 had not accessed discourse at all respectively in each term (i.e 20 male learners had not accessed discourse at all in Jan-2022 term and so on) 3. For the female sample: 15, 22, 33, 25, 20 and 20 had followed the instructions respectively in each term (i.e 15 female learners had followed the instructions in Jan-2022 term and so on) 4. For the female sample: 30, 20, 25, 25, 25 and 10 had not accessed discourse at all respectively in each term (i.e 30 female learners had not accessed discourse at all in Jan-2022 term and so on) Moreover, Dr. Milo assumes that all learners in the “followed the instructions” category are Uniformly distributed between 4 and 75. A total of 6 bins of equal area are created for performing the appropriate statistical test. Each term is a sample point.
Given this information, answer the sub questions.
What is the value of the computed test statistic which will be used to check if Dr. Milo’s assumption that all learners in the “followed the instructions” category are Uniformly distributed? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 13.55 (accepted within ±0.35)
(The following is a partially imaginary scenario)
The BA discourse is often cluttered with queries / requests related to solutions for Past Year Question Papers (PYQP). The course instructor, Dr. Milo, had been informing that students need to put in effort to find solutions by searching the discourse. However, the results seem to be disappointing. Therefore, Dr. Milo wanted to do a few basic analytics on discourse behaviour of students. Past student data was collected for the analysis.
Past data was collected for the BA terms in Jan-2022, May-2022, Sep-2022, Jan-2023, May-2023 and Sep-2023. For each term, 150 randomly selected unique student IDs were sampled. Of the 150 student IDs, 75 were “Male” and the remaining were “Female”. The learners in the discourse have either “followed the instructions” or “not followed the instructions” or “have not accessed the discourse at all” (these three are referred to as access categories). Specifically, for the sample data in the different terms (in sequence of earliest term to later term i.e. Jan-2022 to Sep-2023) it was observed that
1. For the Male sample: 30, 20, 35, 35, 45 and 35 had not followed the instructions respectively in each term (i.e 30 male learners had not followed the instructions in Jan-2022 term and so on) 2. For the Male sample: 20, 10, 15, 15, 15 and 10 had not accessed discourse at all respectively in each term (i.e 20 male learners had not accessed discourse at all in Jan-2022 term and so on) 3. For the female sample: 15, 22, 33, 25, 20 and 20 had followed the instructions respectively in each term (i.e 15 female learners had followed the instructions in Jan-2022 term and so on) 4. For the female sample: 30, 20, 25, 25, 25 and 10 had not accessed discourse at all respectively in each term (i.e 30 female learners had not accessed discourse at all in Jan-2022 term and so on) Moreover, Dr. Milo assumes that all learners in the “followed the instructions” category are Uniformly distributed between 4 and 75. A total of 6 bins of equal area are created for performing the appropriate statistical test. Each term is a sample point.
Given this information, answer the sub questions.
How many degrees of freedom is present for the hypothesis test used to check if Dr. Milo’s assumption that all learners in the “followed the instructions” category are Uniformly distributed?
Correct answer: 5
(The following is a purely imaginary scenario)
A company sells two products (A and B) in four different marketplaces. In the first marketplace, the sales are made at the Forenoon (FN). In the second marketplace, sales are made during the Afternoon (AN). In the third marketplace, sales are made during the Evening (E). In the fourth marketplace, sales are made during the Night (N). Table-2 provides the data on the sales in the four marketplaces for the two products in the first 5 days on January 2023. Using this data, answer the given subquestions.
| Date | Marketplace | Number of units of Product-A Sold | Number of units of Product-B Sold |
|---|---|---|---|
| 01-01-2023 | FN | 31 | 30 |
| 02-01-2023 | FN | 21 | 41 |
| 03-01-2023 | FN | 16 | 45 |
| 04-01-2023 | FN | 7 | 56 |
| 05-01-2023 | FN | 13 | 49 |
| 01-01-2023 | AN | 8 | 40 |
| 02-01-2023 | AN | 8 | 42 |
| 03-01-2023 | AN | 21 | 44 |
| 04-01-2023 | AN | 13 | 55 |
| 05-01-2023 | AN | 7 | 42 |
| 01-01-2023 | E | 31 | 30 |
| 02-01-2023 | E | 21 | 41 |
| 03-01-2023 | E | 16 | 52 |
| 04-01-2023 | E | 7 | 57 |
| 05-01-2023 | E | 13 | 49 |
| 01-01-2023 | N | 8 | 55 |
| 02-01-2023 | N | 8 | 57 |
| 03-01-2023 | N | 21 | 44 |
| 04-01-2023 | N | 13 | 52 |
| 05-01-2023 | N | 7 | 62 |
Table-2
The question of whether total sales in different marketplaces for product A and total sales in different marketplaces for product B are independent across the different days is being checked. Then what is the expected frequency for “Product-B” on “03-01-2025”? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 198 (accepted within ±1)
(The following is a purely imaginary scenario)
A company sells two products (A and B) in four different marketplaces. In the first marketplace, the sales are made at the Forenoon (FN). In the second marketplace, sales are made during the Afternoon (AN). In the third marketplace, sales are made during the Evening (E). In the fourth marketplace, sales are made during the Night (N). Table-2 provides the data on the sales in the four marketplaces for the two products in the first 5 days on January 2023. Using this data, answer the given subquestions.
| Date | Marketplace | Number of units of Product-A Sold | Number of units of Product-B Sold |
|---|---|---|---|
| 01-01-2023 | FN | 31 | 30 |
| 02-01-2023 | FN | 21 | 41 |
| 03-01-2023 | FN | 16 | 45 |
| 04-01-2023 | FN | 7 | 56 |
| 05-01-2023 | FN | 13 | 49 |
| 01-01-2023 | AN | 8 | 40 |
| 02-01-2023 | AN | 8 | 42 |
| 03-01-2023 | AN | 21 | 44 |
| 04-01-2023 | AN | 13 | 55 |
| 05-01-2023 | AN | 7 | 42 |
| 01-01-2023 | E | 31 | 30 |
| 02-01-2023 | E | 21 | 41 |
| 03-01-2023 | E | 16 | 52 |
| 04-01-2023 | E | 7 | 57 |
| 05-01-2023 | E | 13 | 49 |
| 01-01-2023 | N | 8 | 55 |
| 02-01-2023 | N | 8 | 57 |
| 03-01-2023 | N | 21 | 44 |
| 04-01-2023 | N | 13 | 52 |
| 05-01-2023 | N | 7 | 62 |
Table-2
The question of whether total sales in different marketplaces for product A and total sales in different marketplaces for product B are independent across the different days is being checked. Then what is the value of the computed test statistic? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 32.5 (accepted within ±1)
(The following is a purely imaginary scenario)
A company sells two products (A and B) in four different marketplaces. In the first marketplace, the sales are made at the Forenoon (FN). In the second marketplace, sales are made during the Afternoon (AN). In the third marketplace, sales are made during the Evening (E). In the fourth marketplace, sales are made during the Night (N). Table-2 provides the data on the sales in the four marketplaces for the two products in the first 5 days on January 2023. Using this data, answer the given subquestions.
| Date | Marketplace | Number of units of Product-A Sold | Number of units of Product-B Sold |
|---|---|---|---|
| 01-01-2023 | FN | 31 | 30 |
| 02-01-2023 | FN | 21 | 41 |
| 03-01-2023 | FN | 16 | 45 |
| 04-01-2023 | FN | 7 | 56 |
| 05-01-2023 | FN | 13 | 49 |
| 01-01-2023 | AN | 8 | 40 |
| 02-01-2023 | AN | 8 | 42 |
| 03-01-2023 | AN | 21 | 44 |
| 04-01-2023 | AN | 13 | 55 |
| 05-01-2023 | AN | 7 | 42 |
| 01-01-2023 | E | 31 | 30 |
| 02-01-2023 | E | 21 | 41 |
| 03-01-2023 | E | 16 | 52 |
| 04-01-2023 | E | 7 | 57 |
| 05-01-2023 | E | 13 | 49 |
| 01-01-2023 | N | 8 | 55 |
| 02-01-2023 | N | 8 | 57 |
| 03-01-2023 | N | 21 | 44 |
| 04-01-2023 | N | 13 | 52 |
| 05-01-2023 | N | 7 | 62 |
Table-2
The question of whether total sales in different marketplaces for product A and total sales in different marketplaces for product B are independent across the different days is being checked. Then what is the number of degrees of freedom for the test? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)
Correct answer: 4
