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Business Analytics · Quiz 1 · 7 Jul 2024 · May 2024 term

Question 7: “Aqua Aqua (AA)” is a manufacturer of water purifiers. AA…

Question 7

+1.5 marksNumerical answer

“Aqua Aqua (AA)” is a manufacturer of water purifiers. AA wants to understand the life of its RO filters. The life of a filter is measured in terms of “Litres of Water Purified (LWP)” before a warning light is raised for maintenance. A sample of 20 water purifiers were tested and the time (LWP) after which the warning light is raised for maintenance of the RO Filter was noted (data provided in Table-2). With this data, AA wants to understand the possible distribution for the life of the RO filter. To this end, it is proposed to bin the data in 4 groups “Low Life (LWP <=25)”, “Medium Life (25<LWP<=40)”, “High Life (40<LWP<=80)”, “Excellent Life (LWP>80)”.
The following Ф values are given to you, where Ф(z) indicates the area under the curve (between “0” to “LWP”) for a normal distribution with a mean of 60 and standard deviation of 24. Ф(-1.45) = 0.07; Ф(-0.83) = 0.20; Ф(+0.83) = 0.79; Ф(+1.45) = 0.93

Sample-IDRO Filter Life (in LWP)Sample-IDRO Filter Life (in LWP)
S-173S-1170
S-249S-1247
S-312S-1378
S-472S-1415
S-597S-1554
S-695S-1661
S-779S-1791
S-842S-1861
S-970S-1926
S-1053S-2064

Table-2

Given this information, answer the subquestions

If the life of the RO filter is expected to follow a normal distribution with a mean of 60 and standard deviation of 24, then what is the expected frequency in the “Excellent Life” bin? (Note-1: The bins DO NOT SPILT the sample space into equal areas) (Note-2: If your answer is in decimal, enter it rounded to two decimal places. For example, if your answer is “10.256”, enter it as “10.26”)

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Correct answer: 4.2 (accepted within ±0.1)

Question 7 of 19 in the IIT Madras BS Business Analytics (Business Analytics) Quiz 1 paper sat on 7 Jul 2024, in the May 2024 term (IIT M DIPLOMA AN EXAM QDD2 7 July 2024). It carries 1.5 marks.

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