UPSC MainsMANAGEMENT-PAPER-II201212 Marks150 Words
Q1.

Stipend Distribution & Financial Aid

In an educational institution, the stipends earned by the students in the first year summer internships of the two year post graduate programme are used to decide the amount of financial aid to be given to the students in the second year of the programme. The stipends earned by the students have the following distribution : Stipend earned (in₹) Number of students 0 - 49,999 231 50,000 - 99,999 304 1,00,000 - 1,49,999 400 1,50,000 - 1,99,999 296 2,00,000 - 2,49,999 123 2,50,000 - 2,99,999 68 3,00,000 or more 23 What is the mode value of the stipend earned ? If financial aid is restricted to those students whose stipend earnings are at least 10% lower than the mode value, how many of the applicants qualify ?

How to Approach

This question requires a two-part answer. First, we need to calculate the mode of the given stipend distribution. Then, we need to determine how many students qualify for financial aid based on the 10% lower threshold of the calculated mode. The answer should demonstrate understanding of statistical concepts like mode and percentage calculation, and apply them to the given data. A clear, step-by-step approach is crucial for a good score.

Model Answer

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Introduction

The concept of financial aid in educational institutions is often linked to socio-economic factors and merit. However, innovative approaches, like the one described in the question, utilize performance-based metrics – in this case, internship stipends – to determine aid allocation. This method aims to incentivize students and potentially create a self-sustaining financial aid system. Understanding the distribution of stipends is crucial for effective resource allocation and ensuring equitable access to education. This question tests the ability to apply basic statistical principles to a real-world scenario within an educational context.

Calculating the Mode

The mode represents the value that appears most frequently in a dataset. In this case, we need to identify the stipend range with the highest number of students.

Stipend earned (in₹) Number of students
0 - 49,999 231
50,000 - 99,999 304
1,00,000 - 1,49,999 400
1,50,000 - 1,99,999 296
2,00,000 - 2,49,999 123
2,50,000 - 2,99,999 68
3,00,000 or more 23

From the table, the stipend range of ₹1,00,000 - ₹1,49,999 has the highest number of students (400). Therefore, the mode value of the stipend earned is considered to be the midpoint of this range, which is ₹1,25,000 (average of 100000 and 149999). For practical purposes, we can consider the mode to be approximately ₹1,25,000.

Determining Financial Aid Eligibility

The financial aid is restricted to students whose stipend earnings are at least 10% lower than the mode value. First, we calculate 10% of the mode value:

10% of ₹1,25,000 = ₹12,500

Next, we subtract this amount from the mode value to find the eligibility threshold:

₹1,25,000 - ₹12,500 = ₹1,12,500

Therefore, students who earned a stipend of at least ₹1,12,500 are not eligible for financial aid. We need to count the number of students who earned less than ₹1,12,500.

Looking at the stipend distribution:

  • Students earning 0 - 49,999: 231
  • Students earning 50,000 - 99,999: 304
  • Students earning 1,00,000 - 1,09,999: Approximately 300 (proportionately assuming uniform distribution within the 1,00,000 - 1,49,999 range)

Total number of students eligible for financial aid = 231 + 304 + 300 = 835

Conclusion

In conclusion, the mode value of the stipend earned by the students is approximately ₹1,25,000. Based on the given criteria, 835 students qualify for financial aid as their stipend earnings are at least 10% lower than the mode value. This approach to financial aid allocation, while potentially incentivizing performance, requires careful consideration of equity and potential biases. Further analysis of the distribution and student needs would be beneficial for optimizing the aid system.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Mode
The mode is the value that appears most frequently in a dataset. It represents the most common observation.
Financial Aid
Financial aid refers to funding provided to students to help cover the costs of education, including tuition, fees, books, and living expenses. It can take the form of grants, scholarships, loans, or work-study programs.

Key Statistics

As of 2022-23, the total expenditure on education in India was approximately ₹6.17 lakh crore (source: Ministry of Education, Government of India).

Source: Ministry of Education, Government of India (2023)

The Gross Enrolment Ratio (GER) in higher education in India was 27.3% in 2021-22 (source: All India Survey on Higher Education, AISHE).

Source: AISHE (2022-23)

Examples

National Scholarship Portal

The National Scholarship Portal (NSP) is a one-stop online portal launched by the Government of India to provide scholarships to students. It simplifies the application process and ensures transparency in scholarship disbursement.

Frequently Asked Questions

What are the limitations of using internship stipends to determine financial aid?

Using internship stipends may disadvantage students who lack access to well-paying internships due to geographical limitations, network constraints, or field of study. It may also not accurately reflect a student's financial need.

Topics Covered

EconomicsStatisticsEducationData AnalysisModeFinancial Assistance