Statistics

UPSC Statistics 2024

All 16 questions from the 2024 Civil Services Mains Statistics paper across 2 papers — 800 marks in total. Each question comes with a detailed evaluation rubric, directive word analysis, and model answer points.

16Questions
800Total marks
2Papers
2024Exam year

Paper I

8 questions · 400 marks
Q1
50M Compulsory solve Probability theory and statistical inference

(a) Two events A and B are such that P(A) = 1/3, P(B) = 1/4 and P(A|B) + P(B|A) = 2/3. Evaluate the following: (i) P(A^c ∪ B^c) (5 marks) (ii) P(A|B^c) + P(B|A^c) (5 marks) (b) Suppose the joint probability function of two random variables X and Y is f(x, y) = (xy^(x-1))/3; x = 1, 2, 3 and 0 < y < 1. Compute the following: (i) P(X ≥ 2 and Y ≥ 1/2) (5 marks) (ii) P(X ≥ 2) (5 marks) (c) Let X₁, X₂, ... is a sequence of independent and identically distributed random variables with mean (μ) and variance (σ²) < ∞, and assume Sₙ = X₁ + X₂ + ... + Xₙ. Show that WLLN does not hold for sequence ⟨Sₙ⟩ of random variables. (10 marks) (d) Write the criterion of a good estimator. Let X₁, X₂ be iid P(λ) random variables, then show that T = X₁ + X₂ is sufficient while T = X₁ + 2X₂ is not sufficient for estimating λ. (10 marks) (e) For testing H₀: μ = 100 vs. H₁: μ ≠ 100, a random sample of size 50 is drawn from a normal population with unknown mean μ and variance 200. If α = 0.05, then obtain the critical region. (10 marks)

Answer approach & key points

Solve this multi-part numerical problem by allocating time proportionally to marks: approximately 20% for (a), 20% for (b), 20% for (c), 20% for (d), and 20% for (e). Begin each sub-part by stating the relevant formula or theorem, show complete step-by-step working, and conclude with clearly boxed final answers. For (c) and (d), include brief theoretical justification before numerical demonstration.

  • For (a): Use P(A|B) + P(B|A) = 2/3 to find P(A∩B) = 1/12, then apply De Morgan's laws for P(A^c ∪ B^c) = 1 - P(A∩B) = 11/12
  • For (a)(ii): Calculate conditional probabilities using P(A|B^c) = [P(A) - P(A∩B)]/P(B^c) and similar for P(B|A^c), yielding 1/9 + 1/8 = 17/72
  • For (b): Integrate joint PDF over appropriate regions; for (i) sum x=2,3 and integrate y from 1/2 to 1; for (ii) marginalize over y
  • For (c): Show WLLN fails by proving Var(S_n)/n² → σ² ≠ 0, so S_n/n does not converge in probability to μ (unlike sample mean)
  • For (d): State sufficiency criterion (Factorization theorem), show T=X₁+X₂ ∼ P(2λ) allows factorization, while T=X₁+2X₂ does not
  • For (e): Construct z-test with σ²=200, n=50; critical region |z| > 1.96 becomes |x̄ - 100| > 3.92 or x̄ < 96.08 or x̄ > 103.92
Q2
50M calculate Joint distributions and limiting distributions

(a) Let the joint probability density function of two random variables X and Y be f(x, y) = x/3, for 0 < 2x < 3y < 6; 0, otherwise. Compute the following: (i) E(Y|X = x) (10 marks) (ii) E(var(Y|X = x)) (10 marks) (b) Find the distribution function of random variable X, for which the characteristic function is φ(t) = e^(-t²), -∞ < t < ∞. Also compute P(X > 2√2) in terms of Φ(z), where Φ(z) = ∫_{-∞}^{z} (1/√(2π)) e^(-θ²/2) dθ. (15 marks) (c) Let X₁, X₂, ..., X₂ₙ be iid N(0, 1) variates. Find the limiting distribution of [(X₁/X₂) + (X₃/X₄) + ... + (X₂ₙ₋₁/X₂ₙ)] / [X₁² + X₂² + ... + Xₙ²]. (15 marks)

Answer approach & key points

Calculate the required quantities systematically across all parts: spend approximately 40% time on part (a) covering conditional expectation and conditional variance with proper region identification; 30% on part (b) for characteristic function inversion and normal probability computation; and 30% on part (c) for establishing the limiting distribution using Slutsky's theorem and properties of ratio distributions. Begin with clear region sketches for (a), apply Fourier inversion for (b), and justify convergence arguments for (c).

  • For (a)(i): Correctly identify the region 0 < 2x < 3y < 6, derive marginal f_X(x) = x(2-x)/3 for 0 < x < 3, and obtain conditional pdf f_{Y|X}(y|x) leading to E(Y|X=x) = (2+x)/3
  • For (a)(ii): Compute Var(Y|X=x) = (2-x)²/36 and then calculate E[Var(Y|X)] by integrating against f_X(x) to obtain 1/30
  • For (b): Recognize φ(t) = e^{-t²} corresponds to N(0, 2) via inversion formula or matching with standard normal CF, then express P(X > 2√2) = 1 - Φ(2) using variance σ² = 2
  • For (c): Identify that numerator S_n = Σ(X_{2k-1}/X_{2k}) has E(S_n) undefined but apply Cauchy distribution properties, while denominator T_n = ΣX_i² ~ χ²_n, then use Slutsky/continuous mapping to show limiting distribution is standard Cauchy
  • Proper handling of ratio of independent quantities in (c): Show numerator terms are iid Cauchy(0,1) and denominator is χ²_n, establishing that the ratio converges to Cauchy(0,1) or requires normalization clarification
Q3
50M solve Statistical inference and estimation theory

(a) Let moment generating function of random variable X exist in the neighbourhood of zero and if $$E(X^n) = \frac{1}{5} + (-1)^n \frac{2}{5} + \frac{2^{n+1}}{5}; \quad n = 1, 2, 3, \cdots$$ then find the values of the following: (i) $P(|X - 0.75| \leq 1.5)$ (10 marks) (ii) $P(|X - \mu| < \sigma)$; $\mu = E(X)$ and $\sigma^2 = \text{var}(X)$ (10 marks) [Use $\sqrt{1.84} = 1.36$] (b) (i) Write the importance of Cramer-Rao inequality and Rao-Blackwell theorem. (5 marks) (ii) Let $X \sim B(1, \theta)$, then find the uniformly minimum variance unbiased estimator (UMVUE) of $\theta(1-\theta)$. (10 marks) (c) Obtain the maximum likelihood estimates of $\alpha$ and $\beta$ for a random sample from the exponential population $$f(x; \alpha, \beta) = Ce^{-\beta(x-\alpha)}, \alpha \leq x < \infty, \beta > 0$$ (15 marks)

Answer approach & key points

Solve this multi-part numerical problem by first identifying the probability distribution from the given moment pattern in part (a), then applying appropriate estimation theory for parts (b) and (c). Allocate approximately 35% time to part (a) (20 marks), 25% to part (b) (15 marks), and 40% to part (c) (15 marks) based on computational complexity. Structure as: distribution identification → probability calculations → theoretical exposition → UMVUE derivation → MLE derivation with likelihood analysis.

  • For (a): Identify X as a discrete mixture distribution with P(X=-1)=2/5, P(X=0)=1/5, P(X=2)=2/5 by comparing E(X^n) with MGF expansion or direct pattern recognition from the given moment formula
  • For (a)(i): Calculate P(|X-0.75|≤1.5) = P(-0.75≤X≤2.25) by enumerating which mixture components satisfy the inequality, yielding P(X=-1)+P(X=0)+P(X=2)=1 or appropriate subset
  • For (a)(ii): Compute μ=E(X)=0.6 and σ²=Var(X)=1.84, then find P(|X-0.6|<1.36) using the identified distribution support points
  • For (b)(i): Explain Cramer-Rao inequality provides variance lower bound for unbiased estimators enabling efficiency comparison; Rao-Blackwell theorem enables improvement of unbiased estimators via conditioning on sufficient statistics
  • For (b)(ii): Derive UMVUE of θ(1-θ) using Lehmann-Scheffé theorem: identify T=ΣX_i as complete sufficient statistic, find unbiased estimator based on sample variance or direct calculation, condition to obtain final form
  • For (c): Obtain MLEs by writing likelihood L(α,β)=C^n exp[-βΣ(x_i-α)] with constraint α≤x_(1), show likelihood increases with α so α̂=X_(1), then maximize with respect to β to get β̂=n/[Σ(X_i-X_(1))]
Q4
50M solve Hypothesis testing and non-parametric methods

(a) Find the most powerful test of size α(= 0·05) for testing H₀: μ = 0 vs. H₁: μ = 1, given a random sample of size 25 from N(μ, 16) population. (20 marks) (b) A lot consists of some defective items. A random sample of 25 items has 6 defective items with probability p₁ = θ and 19 non-defective items with probability p₂ = 1 – θ. Then estimate θ using the following: (i) MLE method (ii) Minimum χ²-method (iii) Modified minimum χ²-method (15 marks) (c) Differentiate between Mann-Whitney U-test and Wilcoxon sign test. The following data pertain to APGAR scores of 15 pregnant women in two care programmes A and B: Programme A : 8 7 6 2 5 8 7 3 Programme B : 9 9 7 8 10 9 6 Is there a significant difference in APGAR scores of pregnant women under the two care programmes? [Given, U₍₀.₀₅₎ = 10] (15 marks)

Answer approach & key points

Solve this multi-part numerical problem by allocating approximately 40% time to part (a) given its 20 marks, 30% to part (b) covering three estimation methods, and 30% to part (c) involving both differentiation and non-parametric testing. Structure as: (a) derive Neyman-Pearson lemma application with critical region, (b) present three estimation approaches with clear derivations, (c) tabulate differences then perform Mann-Whitney U-test with ranking and decision.

  • Part (a): Apply Neyman-Pearson lemma to derive most powerful test; identify critical region as sample mean > k; compute critical value k = 0.4 + 1.645×(4/5) = 1.716 using Z-test; state rejection rule and power function
  • Part (b)(i): Derive MLE as θ̂ = 6/25 = 0.24 using binomial likelihood L(θ) = θ⁶(1-θ)¹⁹ and log-likelihood differentiation
  • Part (b)(ii): Set up minimum χ² by minimizing Σ(Oi-Ei)²/Ei; show equivalence to MLE in this case or derive modified form with expected frequencies 25θ and 25(1-θ)
  • Part (b)(iii): Apply modified minimum χ² using weights in denominator; demonstrate Neyman modification or minimum logit χ² approach if applicable
  • Part (c): Differentiate Mann-Whitney (two independent samples, ordinal/rank data) vs Wilcoxon signed-rank (paired/matched samples); correctly identify independent samples scenario here
  • Part (c) computation: Rank pooled data (1-15), compute sum of ranks for smaller sample (Programme B, n=7), calculate U = 56 - 28 = 28 or U' = 49 - 28 = 21; compare with critical value U₀.₀₅ = 10; conclude no significant difference since U > 10
Q5
50M Compulsory derive Linear regression, multivariate normal distribution, sampling design

(a) How will you justify the usage of the principle of least squares in estimating the parameters of a linear regression model? With usual notations, for the regression model y = Xβ + ε, show that the least square estimator of β is β̂ = (X'X)⁻¹X'y (10 marks) (b) (i) If X̃ is distributed as N₃(μ̃, Σ), find the distribution of [X₁ - X₂; X₂ - X₃]. (5 marks) (ii) If X₁, X₂ and X₃ are three variables, obtain the expression for the partial correlation coefficient between X₁ and X₂ eliminating the effect of X₃, ρ₁₂·₃, in terms of simple correlation coefficients. (5 marks) (c) X₁ and X₂ are independent data sets of order (n₁ × p) and (n₂ × p) respectively from Nₚ(μ̃, Σ). Show that (n₁n₂D²)/n is distributed as T²(p, n-2), where n = n₁ + n₂, and T² and D² represent the Hotelling's T² and Mahalanobis D² respectively. (10 marks) (d) For the population U = {a, b, c, d, e}, consider the following sampling design: P({a, b, d}) = 1/6, P({a, b, e}) = 1/6, P({a, d, e}) = 1/6, P({b, c, d}) = 1/6, P({b, c, e}) = 1/6, P({c, d, e}) = 1/6. Calculate the first-order and second-order inclusion probabilities. Hence show that it is a matter of a stratified design. Identify the strata with their units. (10 marks) (e) Let the incidence matrix of a design be N = [[1, 1, 1, 0], [1, 1, 0, 1], [1, 0, 1, 1], [0, 1, 1, 1]]. Show that— (i) the design is connected balanced; (ii) its efficiency factor is E = 8/9. (6+4=10 marks)

Answer approach & key points

Derive requires rigorous mathematical proof and step-by-step derivation across all sub-parts. Allocate approximately 20% time to part (a) on least squares justification and derivation, 20% to part (b) on multivariate normal transformations and partial correlation, 20% to part (c) on Hotelling's T² distribution, 20% to part (d) on inclusion probabilities and stratified design identification, and 20% to part (e) on connectedness, balance and efficiency factor. Begin with clear statement of assumptions, proceed through systematic derivations with matrix algebra where needed, and conclude with explicit verification of claimed properties.

  • Part (a): Justify least squares via Gauss-Markov theorem (BLUE property under Gauss-Markov assumptions) or via maximum likelihood under normality; derive β̂ = (X'X)⁻¹X'y by minimizing S(β) = ε'ε = (y-Xβ)'(y-Xβ) using matrix differentiation
  • Part (b)(i): Apply linear transformation property of multivariate normal; define transformation matrix A = [[1, -1, 0], [0, 1, -1]]; derive distribution as N₂(Aμ̃, AΣA') with explicit mean and covariance structure
  • Part (b)(ii): Derive ρ₁₂·₃ = (ρ₁₂ - ρ₁₃ρ₂₃)/√[(1-ρ₁₃²)(1-ρ₂₃²)] using residual correlation formula or partial covariance matrix inversion
  • Part (c): Define D² = (x̄₁ - x̄₂)'S⁻¹(x̄₁ - x̄₂); use independence of sample means and pooled covariance; apply Wishart and Hotelling's T² construction to show (n₁n₂/n)D² ~ T²(p, n-2)
  • Part (d): Calculate πᵢ = Σ_{s∋i} P(s) for first-order inclusion probabilities; calculate πᵢⱼ = Σ_{s∋i,j} P(s) for second-order; verify πᵢⱼ = πᵢπⱼ/πₕ for stratified structure; identify strata as {a,b}, {c}, {d,e} or equivalent based on inclusion pattern analysis
  • Part (e)(i): Verify connectedness via incidence matrix rank or graph connectivity; verify balance via constant λ = Σⱼ nᵢⱼnᵢ'ⱼ for all i ≠ i' pairs
  • Part (e)(ii): Calculate efficiency factor E = (v-1)/[r(k-1)] × (harmonic mean of eigenvalues) or via C-matrix eigenvalues; show E = 8/9 explicitly
Q6
50M prove Bivariate normal distribution, principal components, linear regression estimation

(a) (X, Y) has bivariate normal distribution BN(μ₁, μ₂, σ₁², σ₂², ρ). (i) Show that X and Y are independent if and only if ρ = 0. (6 marks) (ii) If (X, Y) follows BN(3, 1, 16, 25, 3/5), obtain P(3 < Y < 8 | X = 7), given Φ(2) = 0.9772 and Φ(-0.25) = 0.4017, and Φ(x) represents the area under the standard normal curve from -∞ to x. (6 marks) (iii) If (X, Y) follows BN(0, 0, 1, 1, 0), what will be the distribution of Z = Y/X? (4 marks) (iv) State the multivariate extension of (i) when X̃ follows Nₚ(μ̃, Σ). (4 marks) (b) Define principal components and canonical correlation. How can one attain data reduction using principal components? If (X₁, X₂) has covariance matrix Σ = [[1, ρ], [ρ, 1]], then find the principal components. (15 marks) (c) For the simple linear regression model y = β₀ + β₁x + ε, where β₀ and β₁ are parameters and ε has zero mean and an unknown variance σ², find the estimates of β₀ and β₁ by the principle of least squares as well as the method of maximum likelihood. Examine whether they are identical. (15 marks)

Answer approach & key points

Prove the independence condition in (a)(i) using factorization of joint density; for (a)(ii)-(iv), calculate conditional distributions and identify the Cauchy distribution; for (b), define concepts then derive eigenvalues/eigenvectors for PC extraction; for (c), derive both estimators and compare. Allocate ~40% time to part (a) [20 marks], ~30% each to (b) and (c) [15 marks each], with explicit theorem statements and step-by-step derivations throughout.

  • (a)(i) Prove ρ=0 ⇔ independence by showing joint density factorizes into marginal densities, using the bivariate normal PDF structure
  • (a)(ii) Compute conditional distribution Y|X=7 ~ N(μ₂ + ρ(σ₂/σ₁)(x-μ₁), σ₂²(1-ρ²)), then standardize and use Φ values
  • (a)(iii) Identify Z=Y/X as ratio of independent N(0,1) variables, hence standard Cauchy distribution
  • (a)(iv) State multivariate extension: X̃ ~ Nₚ(μ̃, Σ) has independent components iff Σ is diagonal
  • (b) Define PCs as uncorrelated linear combinations maximizing variance; define canonical correlation as correlation between linear combinations of two variable sets; data reduction by retaining top k PCs; derive eigenvalues (1±ρ) and eigenvectors for given Σ
  • (c) Derive LSE by minimizing Σ(yᵢ-β₀-β₁xᵢ)²; derive MLE using normal error assumption; show identical estimators but different variance estimators
  • Compare LSE (distribution-free) vs MLE (requires normality) and note σ²_MLE = SSE/n vs σ²_LSE = SSE/(n-2)
Q7
50M prove Stratified sampling and BIBD

(a) A very big population is divided into two strata. The allocation of units of stratified random sample of size n for the two strata under Neyman allocation are n'_1 and n'_2, and under other type of allocation are n_1 and n_2. Define r = n'_1/n'_2 and μ = n_1/(rn_2). Then prove that the efficiency of stratified random sampling with respect to stratified random sampling under Neyman allocation is given by e = μ(r+1)²/((μr + 1)(μ + r)). (20 marks) (b) A bank has 40000 clients in its computer files, divided into 4000 branches, each managing exactly 10 clients. To estimate the proportion of clients for whom the bank has granted loan, a simple random sample of 40 branches is selected. From the selected sample, for each branch i, a list of clients (A_i) having a loan is prepared; i = 1, 2, ..., 40. The data observed from the selected sample are Σ(i=1 to 40) A_i = 200 and Σ(i=1 to 40) A_i² = 1156. (i) What type of sampling is this? (3 marks) (ii) State the expression of the parameter to estimate and obtain its unbiased estimate. (6 marks) (iii) Estimate the variance of the unbiased estimator obtained in part (ii). (6 marks) (c) (i) Verify whether the following BIBD are possible: (1) v = b = 22, r = k = 7, λ = 2; (2) v = 10, b = 18, r = 9, k = 5, λ = 4. Given that the design is resolvable. (ii) Given below is the incidence matrix (N) of a block design. Find the degrees of freedom associated with the adjusted treatment sum of squares and the degrees of freedom for the error sum of squares.

Answer approach & key points

This question demands rigorous mathematical derivation and proof for part (a), followed by applied numerical analysis for parts (b) and (c). Spend approximately 35% of time on part (a) given its 20 marks and proof complexity; allocate 25% to part (b) covering cluster sampling identification, unbiased estimation and variance calculation; and 40% to part (c) on BIBD verification and degrees of freedom computation. Structure as: (a) state assumptions and derive efficiency ratio step-by-step; (b) identify two-stage/cluster sampling, construct appropriate estimators using given sums; (c) verify necessary conditions for BIBD existence and compute rank of C-matrix for degrees of freedom.

  • Part (a): Define stratum variances S₁², S₂² and sample sizes under Neyman allocation n'₁ = nS₁/(S₁+S₂), n'₂ = nS₂/(S₁+S₂), then express r = S₁/S₂ and derive Var(ȳ_st) under both allocations to obtain the efficiency formula
  • Part (b)(i): Identify this as two-stage sampling (or cluster sampling) where branches are primary units and clients are secondary units, with 4000 first-stage units and 10 second-stage units per cluster
  • Part (b)(ii): Parameter is population proportion P = ΣA_i/(MN) where M=10, N=4000; unbiased estimator is p̂ = (ΣA_i)/(mM) = 200/(40×10) = 0.5 where m=40
  • Part (b)(iii): Variance estimator requires between-cluster mean square s_b² = [ΣA_i² - (ΣA_i)²/m]/(m-1) = [1156 - 1000]/39 = 4, then v(p̂) = (N-n)s_b²/(NnM²) with finite population correction
  • Part (c)(i): Verify BIBD conditions: vr = bk, λ(v-1) = r(k-1), and for resolvable designs b ≥ v + r - 1; Design (1) fails as 22×7 ≠ 22×7 check shows λ(v-1)=42 ≠ r(k-1)=42 actually holds but resolvability requires b≥v+r-1=28 which fails; Design (2) verify 10×9=18×5=90, λ(v-1)=36=r(k-1)=36, and resolvability check
  • Part (c)(ii): For given incidence matrix N, compute C = rI_v - Nk⁻¹N' or treatment information matrix, find rank(C) = v-1 for connected design giving adjusted treatment SS df = v-1, error df = n-v-b+1 or appropriate based on design parameters
Q8
50M solve Factorial design and ANOVA

(a) A 2²-factorial design was used to develop the yield of a crop. Two factors A and B were used at two levels: low (–1) and high (+1). The experiment was replicated two times with completely randomized way. The data obtained are as follows: | Factor A | Factor B | Estimated Average Effect | | – | – | | | + | – | 8 | | – | + | –5 | | + | + | 2 | The sum of squares of all the yields = 510.5 The grand total of all the yields = 50.00 (i) Analyze the data and identify the significant factors. (12 marks) (ii) Develop the regression model and predict the yield when A and B both are at low level (–1). (8 marks) [Given, F₍₁, ₄, ₀.₀₅₎ = 7.71] (b) To estimate the population mean Ȳ of a characteristic Y, a simple random sample of size 1000 was selected from a population of size 1000000 by without replacement. The population mean of an auxiliary character X is X̄ = 15. The other results are given below: s²ᵧ = 20, s²ₓ = 25, sₓᵧ = 15, x̄ = 14, ȳ = 10. (i) Estimate Ȳ using difference, ratio and regression estimators. (6 marks) (ii) Estimate the MSE of these estimators. Which estimator should we choose to estimate Ȳ? (9 marks) (c) Write down the model used in the analysis of a two-way classification with interactions, stating the assumptions. What are the hypotheses tested in this scenario? Obtain the expression for the sum of squares and complete the ANOVA. (15 marks)

Answer approach & key points

Solve this multi-part numerical problem by allocating approximately 35% time to part (a) [20 marks], 25% to part (b) [15 marks], and 40% to part (c) [25 marks]. Begin with clear model specification and ANOVA table construction for the 2² factorial in (a), followed by systematic calculation of difference, ratio and regression estimators in (b), and complete theoretical derivation of two-way ANOVA with interaction in (c). Present all computational steps in tabular format with explicit F-test conclusions and MSE comparisons.

  • For (a)(i): Calculate main effects A and B, interaction effect AB, construct complete ANOVA table with 3 d.f. for treatments and 4 d.f. for error, compare F-calculated with F-critical=7.71 to identify significant factors
  • For (a)(ii): Develop regression equation Y = β₀ + β₁A + β₂B + β₁₂AB with coded variables, substitute A=-1, B=-1 to predict yield at low-low combination
  • For (b)(i): Compute difference estimator ȳ_D = ȳ + (X̄ - x̄), ratio estimator ȳ_R = ȳ(X̄/x̄), and regression estimator ȳ_lr = ȳ + b(X̄ - x̄) where b = s_xy/s_x²
  • For (b)(ii): Calculate MSE for each estimator using appropriate formulas (MSE(ȳ_D), approximate MSE for ratio, and MSE(ȳ_lr) = (1-f)(s_y²(1-ρ²))/n), select estimator with minimum MSE
  • For (c): State model y_ijk = μ + α_i + β_j + (αβ)_ij + ε_ijk with assumptions (normality, independence, homoscedasticity, Σα_i=Σβ_j=Σ(αβ)_ij=0), hypotheses H₀: all α_i=0, all β_j=0, all (αβ)_ij=0, derive SSA, SSB, SSAB, SSE with degrees of freedom and complete ANOVA table

Paper II

8 questions · 400 marks
Q1
50M Compulsory describe Reliability, CUSUM charts, Sampling inspection, Linear programming, Monte Carlo

(a) Consider a system consisting of three identical units connected in parallel. The unit reliability factor is 0·90. If the unit failures are independent of one another, and if the successful operation of the system depends on the satisfactory performance of any one unit, determine the system's reliability. 10 marks (b) Describe the procedure and some of the applications of Cumulative Sum (CUSUM) chart for monitoring process mean. 10 marks (c) Explain the following terms as used in sampling inspection plans : 5+5=10 marks (i) Producer's risk (ii) Average Outgoing Quality Limit (d) A Linear Programming Problem (LPP) in standard form is as given below : Optimize Z = CᵀX subject to AX = B with X ≥ 0 Write down the Dual Simplex form and its iterative procedure. 10 marks (e) What is Monte Carlo Simulation ? State the uses and applications of Monte Carlo Simulation. 10 marks

Answer approach & key points

The directive 'describe' demands systematic exposition of procedures and concepts across all five sub-parts. Allocate approximately 15-18 minutes to part (a) requiring calculation, 12-15 minutes each to descriptive parts (b), (c), and (e), and 10-12 minutes to part (d) on dual simplex. Structure as: direct calculation for (a); stepwise procedural description for (b) with industrial applications; precise definitions with formulas for (c); algorithmic presentation for (d); and conceptual definition followed by domain-specific applications for (e).

  • Part (a): Correct application of parallel system reliability formula R_system = 1 - (1 - 0.90)³ = 1 - (0.10)³ = 0.999 or 99.9%
  • Part (b): CUSUM chart construction using V-mask or decision interval, cumulative sum calculation S_i = Σ(x_j - μ₀), and applications in pharmaceutical quality control or ISRO component manufacturing
  • Part (c)(i): Producer's risk (α) as probability of rejecting good lot (AQL quality), typically set at 5% with Type I error interpretation
  • Part (c)(ii): AOQL as maximum average outgoing quality after rectifying inspection, formula AOQ = p·P_a·(N-n)/N for sampling with replacement
  • Part (d): Dual simplex form with primal maximization converting to dual minimization, conditions for optimality (all c_j - z_j ≤ 0), and iterative steps for pivot selection when b_i < 0
  • Part (e): Monte Carlo as stochastic simulation using random number generation, with applications in nuclear shielding design, financial risk modeling, or Indian monsoon prediction
Q2
50M solve Control charts, Weibull distribution, Simplex method

(a) Obtain the control limits for X̄-chart and R-chart and describe the significance of joint study of these charts. 20 marks (b) Find the reliability and hazard functions of Weibull distribution with scale parameter θ and shape parameter β, and interpret the findings. 10 marks (c) Use simplex method to solve the following LPP : Maximize z = 5x₁ + 2x₂ subject to 6x₁ + x₂ ≥ 6 4x₁ + 3x₂ ≥ 12 x₁ + 2x₂ ≥ 4 x₁ ≥ 0, x₂ ≥ 0 20 marks

Answer approach & key points

Begin by deriving control limits for X̄-chart and R-chart using standard formulae with A₂, D₃, D₄ constants, explaining why joint monitoring prevents Type I/II errors in SPC (40% time). For Weibull, derive R(t) = exp[-(t/θ)^β] and h(t) = (β/θ)(t/θ)^(β-1), interpreting bathtub curve relevance for Indian manufacturing/equipment reliability (20% time). For the LPP, convert ≥ constraints to standard form using surplus variables and artificial variables (Big-M method), then execute simplex iterations to reach optimality (40% time).

  • Part (a): Correct formulae for X̄-chart limits (UCL/LCL = X̄̄ ± A₂R̄) and R-chart limits (UCL = D₄R̄, LCL = D₃R̄) with proper identification of constants
  • Part (a): Explanation that X̄-chart monitors process mean while R-chart monitors process variability; joint study detects both shifts and dispersion changes, preventing misinterpretation from exclusive use of either chart
  • Part (b): Derivation of reliability function R(t) = exp[-(t/θ)^β] and hazard function h(t) = (β/θ)(t/θ)^(β-1) from Weibull PDF
  • Part (b): Interpretation of β < 1 (decreasing hazard, infant mortality), β = 1 (constant hazard, exponential), β > 1 (increasing hazard, wear-out) with industrial examples
  • Part (c): Conversion of ≥ constraints to standard form: subtract surplus variables s₁, s₂, s₃ and add artificial variables A₁, A₂, A₃ with Big-M penalty in objective
  • Part (c): Complete simplex tableau iterations showing entering/leaving variables, pivot operations, and final optimal solution with Z_max = 12 at (x₁=3, x₂=0) or verified corner point
  • Part (c): Verification of solution by checking constraint satisfaction and comparing objective values at all extreme points
Q3
50M explain Linear programming, Markov chains, reliability theory

(a) With respect to a given Linear Programming Problem (LPP), explain the following concepts : 15 marks (i) Extreme Point Solutions (ii) Duality Theorem (iii) Complementary Slackness Principle (b) Define a Transition Probability Matrix (TPM). When is it said to be Regular and Ergodic ? Check whether the following TPM is Regular or Ergodic. Hence or otherwise obtain the $\lim\limits_{n \to \infty} P^n$, where $P = \begin{pmatrix} 0.88 & 0.12 \\ 0.15 & 0.85 \end{pmatrix}$. 15 marks (c) The reliability function R(t) of a cutting assembly is given by : $$R(t) = \begin{cases} \left(1-\dfrac{t}{t_0}\right)^2, & 0 \leq t \leq t_0 \\ \quad 0 & , \quad t \geq t_0 \end{cases}$$ (i) Determine the failure rate. (ii) Does the failure rate increase or decrease with time ? (iii) Determine the mean time to failure. 8+4+8=20 marks

Answer approach & key points

Begin with clear definitions for (a)(i)-(iii) on LPP concepts, allocating ~30% time; for (b) define TPM, establish regularity/ergodicity criteria, then compute steady-state probabilities using eigenvalue or algebraic methods (~35% time); for (c) derive failure rate from R(t), analyze its monotonicity, and integrate for MTTF (~35% time). Structure: definitions → theorems → computational steps → physical interpretation.

  • (a)(i) Extreme Point Solutions: Definition as feasible region vertices, convex combination property, and Fundamental Theorem of LPP optimality at extreme points
  • (a)(ii) Duality Theorem: Statement of weak and strong duality, primal-dual relationship, and economic interpretation of shadow prices
  • (a)(iii) Complementary Slackness: Conditions relating primal slack and dual variables, optimality verification tool
  • (b) TPM definition with row-stochastic property; regularity (some P^n has all positive entries) vs ergodicity (irreducible + aperiodic); classification of given P as regular and ergodic; computation of limiting distribution π = (5/9, 4/9)
  • (c)(i) Failure rate λ(t) = 2/(t₀-t) for 0 ≤ t < t₀ using λ(t) = -R'(t)/R(t)
  • (c)(ii) Increasing failure rate (IFR) demonstration as λ'(t) > 0, indicating wear-out phase
  • (c)(iii) MTTF = t₀/3 via integration ∫₀^t₀ R(t)dt, with proper handling of improper integral at t₀
Q4
50M solve Queueing theory, inventory management, statistical quality control

(a) A manually handled toll-booth has two tellers, who are each capable of handling an average of 60 vehicles per hour, with the actual service times exponentially distributed. Vehicles arrive at the booth according to a Poisson process, at an average rate of 100 per hour. Determine the following : 15 marks (i) The probability that there are more than three vehicles in the booth at the same time (ii) The probability that a given teller is idle (iii) The probability that a vehicle spends more than 3 minutes in the booth (b) PQR Electronics produces 300 transistors per day, which go into the inventory. It supplies 150 transistors per day to XYZ Radios. The annual demand is 37,500 units. The inventory holding cost is $ 0·25 per transistor per year and the setup cost per production run is $ 200. Find the following : 15 marks (i) Economic Order Quantity (EOQ) (ii) Production run length (iii) Number of production runs per year (iv) Maximum Inventory Level (c) (i) Explain the terms 'chance causes' and 'assignable causes' of variation in quality control. Also provide some principal advantages of statistical quality control. 10 marks (ii) Describe the procedure of obtaining OC curve for single sampling plan. 10 marks

Answer approach & key points

Solve this multi-part numerical and theoretical question by allocating approximately 35% time to part (a) on M/M/2 queueing, 30% to part (b) on production inventory EOQ model, and 35% to part (c) on SQC theory. Begin with clear identification of model parameters for each part, show all formulas with standard notation, perform step-by-step calculations with proper unit conversions, and conclude with precise numerical answers and brief interpretations where asked.

  • For (a): Correct identification of M/M/2 queue parameters (λ=100/hr, μ=60/hr, c=2), calculation of traffic intensity ρ=λ/(cμ)=0.833, and use of multi-server queue formulas for P₀, Pₙ, and waiting time distribution
  • For (a)(i): Computation of P(n>3) = 1 - P₀ - P₁ - P₂ - P₃ using the formula Pₙ = (1/n!)(λ/μ)ⁿP₀ for n≤c and Pₙ = (1/c!cⁿ⁻ᶜ)(λ/μ)ⁿP₀ for n>c
  • For (a)(ii): Probability a given teller is idle = P₀ + ½P₁ (or equivalently 1 - ρ), recognizing that idle probability per server differs from system idle probability
  • For (b): Identification of production model parameters (p=300/day, d=150/day, D=37,500/yr, C₁=$0.25/yr, C₃=$200), and application of EPQ formulas rather than simple EOQ
  • For (b)(i)-(iv): Correct formulas for EOQ/EPQ = √[2DC₃p/(C₁(p-d))], production run length = Q/p, number of runs = D/Q, and maximum inventory = Q(p-d)/p with proper unit consistency
  • For (c)(i): Clear distinction between chance causes (random, inherent, unavoidable) and assignable causes (special, identifiable, removable), with 4-5 specific advantages of SQC such as early detection, reduced inspection costs, and customer satisfaction
  • For (c)(ii): Systematic description of OC curve construction: define p (lot fraction defective), calculate Pₐ using binomial/Poisson approximation, plot Pₐ vs p, and identify key points (AQL, LTPD, α, β)
Q5
50M Compulsory discuss Indian Statistical System, AR(1) model, SLSE, Demography, Intelligence tests

(a) Discuss the Indian Statistical System. State some important organisations and explain the main working of the National Statistical Organisation (NSO). 10 marks (b) Consider AR(1) model with non-zero mean 74·3293 and φ = 0·5705. If the last observed value is 67, then obtain the forecasting 1 time unit into the future yields. What is the forecasted value of 5 time units into the future ? 10 marks (c) Discuss the concept of structure and model for Simultaneous Linear Statistical Equations (SLSE) model. The application of least squares method for estimating the parameters in SLSE model is inappropriate. Explain. 10 marks (d) (i) Determine the average age at death of those who die between ages x and x + n. (ii) If l(x) = 100√(100 – x) find μ(84) exactly using appropriate method. 10 marks (e) What are intelligence tests and how are they used in measuring intelligence ? Define the terms mental age and IQ in this connection. 10 marks

Answer approach & key points

This multi-part question requires balanced coverage across five thematic areas. Allocate approximately 20% time each to parts (a), (c), and (e) which demand descriptive-discursive treatment, and 20% combined to parts (b) and (d) which require precise calculations. Begin with a brief roadmap indicating coverage of all sub-parts, then proceed sequentially: Indian statistical infrastructure → AR(1) forecasting with proper formula application → SLSE theoretical exposition → life table computations with force of mortality derivation → psychometric concepts with Binet-Simon/Wechsler references. Conclude each calculation part with interpreted results in context.

  • (a) Indian Statistical System: Evolution from PC Mahalanobis era; distinction between Central and State statistical machinery; NSO's role under Ministry of Statistics and Programme Implementation (MoSPI); key organizations—CSO, NSSO, Registrar General of India, NITI Aayog; NSO's functioning through data collection, coordination, and dissemination under National Statistical Commission oversight
  • (b) AR(1) forecasting: Correct model specification X_t = μ + φ(X_{t-1} - μ) + ε_t; one-step ahead forecast = μ + φ(x_n - μ) = 74.3293 + 0.5705(67 - 74.3293); five-step ahead forecast converges to mean μ as φ^5 → 0; explicit numerical computation
  • (c) SLSE model: Structural form vs reduced form distinction; endogeneity problem causing correlation between regressors and error terms; simultaneous equation bias; why OLS is inconsistent (covariance between Y and u non-zero); need for IV/2SLS methods
  • (d)(i) Average age at death: n_a_x = (∫_0^n (x+t)μ(x+t)l(x+t)dt)/(l(x)-l(x+n)) or equivalent life table expression; (d)(ii) Force of mortality μ(x) = -d[ln l(x)]/dx; exact derivation for l(x)=100√(100-x) yielding μ(84)=1/32
  • (e) Intelligence tests: Definition as standardized measures of cognitive ability; types—verbal, performance, group vs individual; uses in education, clinical diagnosis, occupational selection; mental age (MA) as performance level relative to age norms; IQ formulas—Stern's ratio IQ (MA/CA×100) and deviation IQ; reference to Indian adaptations
Q6
50M derive OLS and GLS estimators, Index Number Tests, Population projection

(a) For the linear model Y = Xβ + u, obtain the expressions for Ordinary Least Squares (OLS) and Generalised Least Squares (GLS) estimators of the parameters. Discuss their properties and compare them. 20 marks (b) Explain Time Reversal Test, Factor Reversal Test and Circular Test in the Index Number Theory. Using the following data, verify whether the Laspeyres' formula satisfies Time Reversal Test. 15 marks (c) Distinguish between population estimates and population projections. Briefly describe the component method of population projection. 15 marks

Answer approach & key points

Begin by deriving OLS and GLS estimators using matrix notation for part (a), allocating approximately 40% of time/space given its 20 marks. For part (b), explain the three index number tests conceptually before applying the Time Reversal Test to Laspeyres' formula with the given data (~30%). For part (c), clearly distinguish estimates from projections and outline the component method with fertility, mortality, and migration components (~30%). Conclude with a brief synthesis of how these statistical tools inform policy-making in India.

  • For (a): Derivation of β̂_OLS = (X'X)^(-1)X'Y and β̂_GLS = (X'Ω^(-1)X)^(-1)X'Ω^(-1)Y with proper assumptions
  • For (a): Comparison of BLUE properties under homoscedasticity vs. heteroscedasticity/autocorrelation; efficiency of GLS over OLS when Ω ≠ σ²I
  • For (b): Clear statement of Time Reversal (P01 × P10 = 1), Factor Reversal (P01 × Q01 = Σp1q1/Σp0q0), and Circular (P01 × P12 × P20 = 1) tests
  • For (b): Numerical verification showing Laspeyres' index fails Time Reversal Test with explicit calculation
  • For (c): Distinction between estimates (current/retrospective) and projections (future-oriented, assumption-dependent)
  • For (c): Component method: projection of births by age-specific fertility, deaths by life tables, migration by net migration rates
Q7
50M explain Identification problem and econometric models

(a) Explain the problem of identification with a suitable example. Also discuss the conditions of identification. Check the identifiability of each equation of the following structural model : y₁ = 3y₂ – 2x₁ + x₂ + u₁ y₂ = y₃ + x₂ + u₂ y₃ = y₁ – y₂ – 2x₃ + u₃ 15 (b) Explain why mortality situations at two places cannot be compared on the basis of crude death rates. Describe the construction of standardised death rates for this purpose. What is a comparative mortality index and how is it used ? 20 (c) (i) Define reliability of a test. What is the effect of test length on the reliability of a test ? 5 (ii) Give different methods for estimating the reliability of a psychological test. 10

Answer approach & key points

Explain the identification problem with a concrete supply-demand example, then apply order and rank conditions to the given 3-equation system. For (b), explain why CDR fails using Indian state examples (e.g., Kerala vs. Uttar Pradesh age structures), then detail direct and indirect standardization methods. For (c), define reliability via Spearman-Brown prophecy, discuss test length effects, and enumerate split-half, KR-20, KR-21, and Cronbach's alpha methods. Allocate approximately 30% time to (a), 40% to (b), 20% to (c)(i), and 10% to (c)(ii) based on marks distribution.

  • (a) Clear explanation of identification problem using supply-demand simultaneous equations example; distinction between under-identified, just-identified, and over-identified equations
  • (a) Correct application of order condition (K - k ≥ m - 1) and rank condition to all three equations; accurate classification of each equation's identifiability status
  • (b) Explanation of CDR limitations due to varying age-sex compositions; use of Indian demographic examples (e.g., aging Kerala vs. younger Bihar populations)
  • (b) Construction of standardized death rates: direct method (standard population weights) and indirect method (standard mortality rates); formula for Comparative Mortality Index (CMI) and its interpretation
  • (c)(i) Formal definition of reliability as ratio of true score variance to observed score variance; statement and explanation of Spearman-Brown prophecy formula for test length effects
  • (c)(ii) Comprehensive coverage of reliability estimation methods: test-retest, parallel forms, split-half (including Spearman-Brown correction), Kuder-Richardson formulas (KR-20, KR-21), and Cronbach's coefficient alpha with appropriate formulas
Q8
50M solve Item difficulty scaling and fertility measures

(a) Four items are to be constructed so that they are equispaced on the difficulty scale. If the easiest item is passed by 85% of the group and the most difficult by 25%, find the percentage of individuals in the group passing the other two items. (Standard Normal tables are provided) 15 (b) Define Crude Birth Rate, General Fertility Rate and Age-specific Fertility Rate and indicate why each is considered an improvement on the preceding measure of fertility. Define Total Fertility Rate and its utility. 15 (c) (i) Discuss the problem of autocorrelation. What are the consequences of OLS estimators in estimating the parameters in the presence of autocorrelation ? (ii) Explain the Durbin-Watson test for testing the autocorrelation. 10+10=20

Answer approach & key points

Begin with part (a) by converting percentages to z-scores using standard normal tables, then apply linear interpolation for equispaced difficulty; allocate ~30% time here. For part (b), define each fertility measure sequentially showing progressive refinement from crude to age-specific rates, then explain TFR's utility for population projection—spend ~30% time. For part (c), discuss autocorrelation consequences on OLS properties (BLUE violation), then detail Durbin-Watson test procedure with critical values—allocate ~40% time as this carries highest marks. Conclude with integrated insights on statistical applications in demographic and econometric analysis.

  • Part (a): Convert 85% and 25% to z-scores (-1.036 and 0.674), establish equidistant points on difficulty scale, calculate intermediate z-values, convert back to percentages (~58% and ~42%)
  • Part (b): CBR definition and limitation (ignores age-sex structure); GFR improvement (restricts to women 15-49); ASFR refinement (age-specific exposure); TFR as sum of ASFRs and utility for replacement-level fertility analysis (India's TFR ~2.0)
  • Part (c)(i): Autocorrelation causes (inertia, specification error, cobweb, data manipulation); consequences: OLS estimators remain unbiased but inefficient, standard errors biased, t/F tests invalid, R² misleading
  • Part (c)(ii): DW test assumptions (no lagged dependent variable, intercept, non-stochastic regressors); test statistic formula; decision zones (0 to 4 scale); inconclusive region problem; alternative tests (Durbin's h, Breusch-Godfrey)

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