STATISTICS FOR MANAGEMENT

CONTENTS
1. Introduction to Statistics
2. Probability
3. Probability Distribution
4. Sampling & Sampling Distribution
5. Estimation
6. Testing of Hypothesis
7. Chi-Square & ANOVA
8. Simple Correlation & Regression
9. Business Forecasting & Time Series
10. Index Numbers

UNIT 1

1. Which of the following statements about statistics is not correct?

a. Statistics is sometimes misused by statistians
b. Statistics has hardly any limitations
c. Statistics is Indispensable in Management of business enterprises
d. Statistics is of two types – descriptive is inferential

2. Which of the following is a primary data

a. Census of population data
b. Whole sale price Index Numbers
c. Statistics contained in an official publication
d. Data collected through your own field survey

3. Collection of secondary data is

a. Cheaper
b. Faster
c. More accurate
d. a & b
e. a, b & c

4. Which of the following is the most accurate method of classifying data

a. Qualitative method
b. Quantitative method
c. Method depending on the Nature of Information
d. a & b

5. Which Tabulating the grouped data:

a. Each group must have frequencies
b. Frequency can be Negative
c. It is necessary to have frequencies
d. None of the above

6. The first step in the following of a frequency Table is:

a. Choosing a suitable size or width of class interval
b. Establishing the boundaries of each class Interval
c. Deciding an appropriate Number of class grouping
d. Classifying the data into appropriate classes

7. In a relative frequency distribution, frequencies are in

 a. Whole numbers
b. Percentages
c. Fractions
d. Both b & c

8. The Numbers of classes in a frequency distribution depends on

a. Range of observation
b. Size of population
c. Number of data points
d. a & c
e. a, b and c

9. The upper limit of class Intervals is required when we consider the formation of
a. Relative frequency
b. ‘More than’ cumulative frequency
c. ‘Less then’ Cumulative Frequency
d. None of the above

10. Which of the following is not an example of compressed data

a. A frequency curve
b. Frequency distribution
c. Data array
d. Histogram

11. In a frequency distribution, classes are all inclusive because

a. The given data must fit into one class or another
b. None of the data points falls into more than one class
c. There are always more classes than data points
d. All of these

12. While preparing a frequency Table, which of the following number of classes is generally
used
a. Less than five
b. Between 5 and 10
c. Between 10 and 20
d. None of these

13. Double counting is a result of _______ or ________

a. Primary, secondary
b. Qualitative, Quantitative
c. Probability, Non-probability
d. None of these

14. When calculating the average rate of debt expansion for a company the correct mean to
use is the
a. Arithmetic mean
b. Weighted mean
c. Geometric mean
d. Either a or c

15. The Mode has all of the following disadvantages except

a. A data set may have no modal value
b. Every value in a data set may be mode
c. A multimodal data set is difficult to analyze
d. The mode is unduly affected by extreme values
16. What is the major assumptions we make while calculating mean from grouped data?
a. All values one discrete
b. Every value in the class is equal to midpoint
c. No value occurs more than once
d. Each class contains exactly the same number of values

17. Which of the statements is NOT Correct?

a. Some data sets do not have Means
b. Calculation of Mean is affected by Extreme values
c. A weighted mean should be taken when it is necessary to take the Importance of
each value into account
d. All these statements are correct

18. Which of the following is first step in calculating the median of a data set?
a. Average the middle two values of data set
b. Array the data
c. Determine the relative weight of data values in terms of importance
d. None of these

19. Which of the following is not an advantage of using a median?

a. Extreme values affect the median less strongly than they do the mean
b. A median can be calculated for qualitative descriptions
c. Median is easy to understand
d. All the above are advantages

20. Why is it usually better to calculate mode from grouped, rather than ungrouped data?
a. The ungrouped data tend to be bimodal
b. The mode for the grouped data will be same
c. Extreme values have less affect on grouped data
d. The chance of an unrepresentative being chosen as the mode is reduced

21. In which of these cases would the mode be most useful as an indicator of central
tendency?
a. Every value in a data set occurs exactly once
b. All but three values in a data set occur once; three values occur 100 times each
c. All values in data set occur 100 times each
d. Every observation in a data set has the same value

22. Which of the following is an example for a parameters?

a. ¯x
b. η
c. µ
d. all of these
e. b and c but not a

23. Which of the following is NOT a measure of central tendency?

a. Geometric mean
b. Median
c. Mode
d. Arithmetic mean
e. Mean deviation

24. When the distribution is symmetrical and has one mode, the highest point on curve is
called?
 a. Range
b. Mode
c. Median
d. Mean
e. All of these
f. b, c & d

25. When referring to a curve that tails off to the left end, you would call it
a. Symmetrical
b. Skewed right
c. Positively skewed
d. All of these
e. None of these

26. Disadvantage of using the Range as a measure of dispersion include all of the following
except
a. It is heavily influenced by extreme values
b. It can change drastically from one sample to the next
c. It is difficult to calculate
d. It is determined only two points in the data set

27. Why it is necessary to square the difference from the mean when computing the
population variance
a. So that extreme values will not affect the calculation
b. Because it is possible that N could be very small
c. Some of the differences will be +ve & some one –ve
d. None of these

28. Assume that population has µ=100 and σ = 10, If a particular observation has a
standard score of 1, It can be concluded that
a. Its value is 110
b. It lies L/n 90 and 110
c. Its value is greater than 110
d. Nothing can be determined without knowing N

29. Assume that a population has µ = 100 and σ = 10, and N=1000. According to
chebyshev’s theorem, which of the following situations is NOT possible?
a. 150 values are greater than 130
b. 930 values lie between 100 & 108
c. 22 values lie between 120 & 125
d. 70 values are less than 90
e. All these situations are possible

30. Which of the following is an example of relative measure of dispersion

a. Standard deviation
b. Variance
c. Co-efficient of variance
d. All of these
e. a and b

31. Which of the following is True?

a. The variance can be calculated for grouped or ungrouped data
b. The S.D can be calculated for grouped or ungrouped data
c. Variance can be calculated for only ungrouped data
d. a and b
32. If one was to divide the stand and deviation of a population by the mean of the same
population and multiply this value by 100, one would have calculated the
a. Population stand and score
b. Population variance
c. Population standard deviation
d. Population coefficient of variation
e. None of these

33. How does the computation of a sample variance differ from computation of a population
variance
a. µ is replaced by x
b. N is replaced by (n – 1)
c. N is replaced by n
d. a and c
e. a and b

34. The square of the variance of a distribution is the

a. Standard deviation
b. Mean
c. Range
d. Absolute deviation
e. a and b
f. None

35. Chebyshev’s theorem says that 99% of the values will be within ± 3 S. D from the mean
for-
a. Bell shaped distributions
b. Positively skewed distributions
c. Left-tailed distribution
d. All distributions
e. No distributions

36. The mean of 10, 20, 30, 40, 50 will be

a. 50
b. 49
c. 48
d. 51

37. In the formula x = A + Σ fd / N, The ‘d’ can be calculated by

a. X – A
b. x – x
c. N – A
d. None

38. In a class of 60 students 10 have failed with an average marks of 15. If the total marks
of all the students is 1800. The average marks of those who have passed will be
a. 29
b. 34
c. 33
d. 42

39. An average monthly production of a certain factory for the first eight months is 3546
units and for remaining four months is 3100 units. The average monthly production for
the year will be _____
 a. 3397.33 units
b. 3497.33 units
c. 3597.33 units
d. 3697.33 units

40. The mean weight of 150 workers in a factory is 45 Kgs. If the mean weight of men is 64
Kgs. And that of women is 48 Kgs. The Number of men and women workers in factory
are
a. 75 and 75
b. 50 and 100
c. 60 and 90
d. 100 and 50

41. The mean wages paid to 1000 workers in a factory was found to be Rs. 180.40 Later on
it is discovered that the wages of two employees were taken wrongly as 297 and 165
instead of 197 and 185. therefore correct mean wages are
a. Rs. 178.85
b. Rs. 180
c. Rs. 181.49
d. Rs. 180.32

42. If x1 = 275, N1 = 100, x2 = 225 and N2 = 80 The value of x is

a. 264.77
b. 252.77
c. 249
d. 248.77

43. Mean marks of Nine students is 39, Eight students marks are available as 25, 36, 48,
52, 39, 41, 27 and 38. The missing marks of Ninth student is ______
a. 51
b. 49
c. 45
d. 48

44. Mean of 20 values is 45. If one of the values is to be taken as 64 instead of 46, the
correct mean is
a. 45.2
b. 45.4
c. 45.9
d. 45.7

45. If the average wages paid to 25 workers is Rs. 79.60. The missing frequencies one
_____ & _______
Wages: 50 60 70 80 90 100 110
Workers 1 3 ? ? 6 2 1
a. 5 and 7
b. 6 and 6
c. 4 and 8
d. 10 and 2

46. C-I : 0-10 10-20 20-30 30-40 40-50 Tot

Frequencies: 5 ? 15 ? 5 = 45
The missing frequencies are
a. 10 and 10
b. 15 and 5
 c. 8 and 12
d. 12 and 8

47. The median of the following data will be 36, 5, 19, 26, 6, 28, 56, 18, 63.4
a. 22.5
b. 28
c. 56
d. 4

48. The median value of following data is 43, 62, 15, 80, 56, 72, 34, 8, 25
a. 62
b. 43
c. 15
d. 80

49. The median value of the grouped data is

C.I = 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40
F= 6 18 9 10 4 3
a. 20 – 56
b. 19 – 56
c. 20 – 24
d. 20 – 41

50. Mode=50, Md=45, the X = ?

a. 41
b. 40
c. 42.5
d. 42

51. X = 20.2, Md=22.1, Mode = ?

a. 25.4
b. 25
c. 25.9
d. 25.6

52. X= 12, Mode = 13, Md = ?

a. 12.1
b. 12..2
c. 12.33
d. 12.49

53. The formula to calculate Range is ____

a. L – S
b. S – L
c. 1L – S1
d. None

54. The Range for the following series will be 40, 48, 20, 19, 16, 25, 28, 90, 25
a. 70
b. 72
c. 74
d. 62

55. The coefficient of Range for the following Data set will be
6, 12, 18, 24, 30, 36, 42
 a. 0.25
b. 0.65
c. 0.75
d. 0.81

56. The formula to calculate Q.D will be

a. L + N/4 – cf x i
f
b. . L + 2N/4 – cf x i
f
c. Q3 - Q1/2
d. Q3 – Q1/4

Questions 57 - 60
C. I : 5–7 8 – 10 11 – 13 14 – 16 17 - 19
Frequency: 14 24 38 20 4
From the above grouped data, answer the following questions:

57. The value of Q1 will be

a. 8.87
b. 8.67
c. 8.43
d. 8.20

58. The value of Q3 will be

a. 13.49
b. 13.92
c. 13.42
d. 13.21

59. The value of Q. D will be

a. 2.429
b. 2.273
c. 2.284
d. 2.796

60. The coefficient of Q. D. will be

a. 0.4862
b. 0.2039
c. 0.2149
d. 0.2622

61. Mean deviation can be calculated

a. Mean
b. Median
c. Mode
d. All the above

62. The M.D for 59, 32, 67, 43, 22, 17, 64, 55, 47, 80, 25 will be ________
a. 16.91
b. 15
c. 17
d. 19
Questions 63 - 65
Runs 20 40 60 80 100 120 140 160 180
No. of
6 19 40 23 65 83 55 20 9
Batsmen
From the above data, Answer the following questions:

63. The value of mode will be _______

a. 120
b. 140
c. 100
d. 180

64. The value of M. D. will be

a. 28
b. 28.69
c. 27
d. 28.42

65. The value of coefficient of M. D will be

a. 0.239
b. 0.230
c. 0.24
d. 0.25

66. If the value of variance is 100 The S. D will be

a. 10
b. 100
c. 50
d. 25

67. If x = 56 and variance = 144. The value of C. V is _______

a. 17.5
b. 19
c. 21.42
d. 20

68. Σ x = 160, n= 20, variance = 16. Find the value of C. V

a. 4
b. 6
c. 8
d. 10

69. In a distribution, variance=121, C. v = 23.16%. the value of mean is

a. 49
b. 47.49
c. 46
d. 48.5

Questions 70 - 71
Arithmetic mean of runs scored by 3 batsmen Dilip, Kumar and Santosh in a series of 10
Innings are 50, 48 and 12 respectively. The stand and deviation of their runs are respectively
15, 12 and 2 respectively. Answer the following questions:

70. Who is the most consistent?

a. Dilip
 b. Kumar
c. Santosh
d. None

71. Who is the better scores?

a. Dilip
b. Kumar
c. Santosh
d. None

72. C. V of the series is 58% and σ = 21.2 The value of mean is

a. 38
b. 36.55
c. 37
d. 34.92

Questions 73 - 76
No. of
0 – 50 50 – 100 100 – 150 150 – 200 200 – 250 250 - 300 300
workers
No. of
Companie 13 9 0 7 4 5 2
s
From the above data, Answer the following questions:

73. The total n. of persons employed in these companies are _____

a. 5150
b. 5200
c. 5400
d. 5250

74. The value of mean is _________

a. 128
b. 128.25
c. 128.50
d. 128.75

75. The value of S. D is __________

a. 100
b. 100.10
c. 100.24
d. 101

76. The value of CV is ________

a. 74%
b. 72%
c. 77.85%
d. 76%

Questions 77 - 82
An analysis of the monthly wages paid to the workers in two firms A and B belonging to the
same industry gives the following results:
A B
No. of Workers 500 600
Average monthly wages Rs. 186 Rs. 175
Variance Rs. 81 Rs. 100
77. Which firm has a longer wage bill
a. A
b. B

78. The S. D for firm A will be

a. 9
b. 10
c. 12
d. 14

79. The S. D. for the firm B will be _________

a. 12
b. 14
c. 10
d. 16

80. Which firm has greater variability in individual wages?

a. A
b. B

81. The C. V of the firm A will be

a. 5%
b. 4.84%
c. 6.20%
d. 8.90%

82. The C .V of the firm B will be

a. 5.71%
b. 6.20%
c. 5.84%
d. 6.29%

83. In a distribution the following results were given, maximum value = 60 and co-efficient
of range is 0.6. the value of range is ________
a. 45
b. 40
c. 50
d. 60

84. The upper and lower quartile Income of a group of workers are Rs. 8 and Rs. 3 per day
respectively. The Q. D. will be
a. 2.9
b. 2.5
c. 3.2
d. 4.2

85. If Q. D. = 40 Find S. D.
a. 60
b. 70
c. 75
d. 80

86. If M. D = 16, find S. D

a. 20
 b. 25
c. 40
d. 60

87. G. M of 2, 4 and 8 will be ___________

a. 8
b. 4
c. 6
d. 2

88. H.M of 4, 8, 16 will be _______

a. 4.9
b. 5
c. 6.86
d. 8.96

89. Cities A, B and C are equidistant from each other. A motorist Kavels from A to B at 30
km/hr from B to C at 40 km/hr and from C to a at 50 km/hr. Determine the average
speed for the entire trip.
a. 38.3 km/hr
b. 40 km/hr
c. 42 km/hr
d. 46 km/hr

90. The G. M for 4, 16 and 8 is

a. 6
b. 10
c. 12
d. 8

91. The standard deviation of a population dividend by the mean and multiplied by 100
results into ___________
a. Standard score
b. Variance
c. Co-efficient of variance
d. None of these

UNIT – 2

92. If one event is unaffected by the outcome of another event, the two events are said to
be ______
a. Dependent
b. Independent
c. Mutually exclusive
d. All the above
e. Both b & c

93. If (P[A or B]) = P (A), Then

a. A and B are mutually exclusive
b. The Venn diagram areas for A and B overlap
c. P(A) + P(B) is joint probability of A and B
d. No of the above

94. The simple probability of an occurance of an event is called the

a. Bayesian probability
 b. Joint probability
c. Marginal probability
d. Conditional probability

95. Why are the events of a coin toss mutually exclusive?

a. The outcome of any toss is not affected by the outcomes of those preceeding it
b. Both a head and a tail cannot turn up on any one toss
c. The probability of getting a Head and tail are same
d. a and b

96. If a Venn diagram were drawn for events A and B, which are mutually exclusive which of
the following would be True of A & B.
a. Their parts of the rectangle will overlap
b. Their parts of rectangle will be equal in area
c. Their parts of rectangle will not overlap
d. b and c

97. What is the probability that a value chosen at random from a particular population Is
larger than the median of the population
a. 0.25
b. 0.5
c. 1
d. 0.67

98. Assume that a single fair dice is rolled once. Which of the following is True?
a. The probability of rolling a number higher than 1 is 1 – p (1 is rolled)
b. The probability of rolling 3 is 1 – p (1, 2, 4, 5 or 6 is rolled)
c. The probability of rolling 5 or 6 is higher than the probability of rolling 3 or 4
d. All of these
e. A and b

99. If A and B are mutually exclusive events, then P(A or B) = P(A) + P(B). How does the
calculation of P(A or B) change if A and B are not mutually exclusive?
a. P(AB) must be subtracted from P(A) + P(B)
b. P(AB) must be added to P(A)+ P(B)
c. [PA) + P(B)] must be multiplied by P(A or B)
d. [P(A) + P(B)] must be divided by P(AB)
e. None of these

100. Assume that a die is rolled twice in succession and that you are asked to draw
the probability tree showing all possible outcomes of the Two rolls. How many branches
will your tree have?
a. 6
b. 12
c. 36
d. 42
e. 48

Ten numbered balls are laced in an urn. Nos., 1 – 4 are red and nos. 5 – 10 are blue
[NOTE: Questions 101, 102, 103 refer to this situation]

101. What is the probability that a ball drawn at random from the urn in blue?
a. 0.1
b. 0.4
c. 0.6
 d. 1.0
e. Cannot be determined

102. The probability of drawing the ball Numbered 3, of course is 0.1. A ball is drawn,
and it is red. Which of the following is True?
a. P[red] = 0.1
b. P[red] < 0.1
c. P[red] < 0.1
d. P[red] = 0.25
e. c and d

103. In question 102, the probability of drawing the 3 ball was reconsidered after it was
found that the ball drawn was Red. The New probabilities we considered are called
a. Exhaustive
b. A priori
c. Marginal
d. Subjective
e. None of these

104. Symbolically, a marginal probability is

a. P(AB)
b. P(BA)
c. P(B/A)
d. P(ABC)
e. None of these

105. If we sum all the probabilities of the conditional events in which the event A
occurs while under statistical dependents. The result is ___________
a. Marginal probability of A
b. Joint probability of A
c. Conditional probability of A
d. None of these

106. One of the possible outcomes of doing something is a __________. The activity
that produced this outcome is a ____________
a. Event, Sample
b. Event, Experiment
c. Sample, Experiment
d. Random, Experiment

107. The set of all possible outcomes of an activity is the _________

a. Random Experiments
b. Trail
c. Results
d. Sample space

108. A pictorial representation of probability concepts, using symbols to represent

outcomes, is a _________
a. Histogram
b. Venn diagram
c. Bar graph
d. O-give graph

109. Events that cannot happen together are called _____________

a. Unfavorable events
 b. Favorable events
c. Mutually exhaustive
d. Mutually exclusive

110. The probability of one event occurring given that another event has occurred, is
called _____ probability
a. Conditional
b. Marginal
c. Subjective
d. Classical

111. In terms of its assumptions, the least restrictive approach to the study of
probability is the ________
a. Classical approach
b. Conditional approach
c. Baysian approach
d. Subjective approach

112. ________ theorem is often used in Management Decision Making process

a. Bayes’
b. Charle’s
c. Axiomatic
d. Multiplication

113. A list is _____ if it includes all the possible outcomes that can result from an
experiment
a. Mutually exhaustive
b. Mutually exclusive
c. Collectively exhaustive
d. Subjective

114. P(5) = ___________

a. 1
b. 0.5
c. 0.25
d. 0.75

115. Assuming that a box contains in all ten balls of which six are green and four are
red, what is the probability of drawing a Red ball?
a. 0.1
b. 0.5
c. 1.0
d. 0.4

116. What is the probability of getting an Even no. when a die is rolled?
a. 1/3
b. ½
c. 1/6
d. 1

117. What is the probability of getting more than 2 when a die is rolled?
a. 1/3
b. ½
c. 2/3
d. 1
118. What is the probability of getting a Total of 5 when a pair of die & rolled off
simultaneously?
a. 1/36
b. 1/12
c. 4/9
d. 1/9

119. If P(AB) = 0, Then two events A and B are said to be

a. Dependent
b. Independent
c. Equally likely
d. None of these

120. Baye’s Theorem is useful in

a. Computing conditional probability
b. Computing sequential probability
c. Revising prior probability
d. None of these

121. What is the probability of drawing an ace from a bunch of playing cards?
a. 1/10
b. 1/13
c. 1/52
d. None of those

122. The probability of getting a head, while tossing a coin three times is
a. 1
b. 0.75
c. 0.25
d. 0.125

123. What is the probability of getting three heads or three tails on three successive
tosses?
a. 0.25
b. 0.125
c. 0.175
d. None of these

124. In a single throw with two dice, what is the probability of getting a total of 9?
a. 1/24
b. 1/16
c. 1/12
d. 1/9

125. In a throw of dice, find the probability of obtaining a number greater than 2
a. 1/3
b. 2/3
c. 4/3
d. 1

126. Find the value of 4!

a. 29
b. 19
c. 36
 d. 24

127. Find the number of permutations of the word ACCOUNTANT

a. 226800
b. 275900
c. 62500
d. 43200

128. How many Five Letter words an be formed from the word LOGARITHMS
a. 30240
b. 30250
c. 30260
d. 30270

129. A bag contains 4 white and 6 black balls Two balls are drawn out together. What
is the probability that both are black?
a. 1/3
b. 2/3
c. ¼
d. 1

130. From 10,000 Lottery tickets Numerical from 1 to 10,000, one ticket is drawn at
Random What is the probability that number marked on drawn ticket is divisible by 20?
a. 0.06
b. 0.05
c. 0.08
d. 0.92

131. Two letters are drawn at Random from the word HOME. Find the probability that
atleast one is a Vowel.
a. 5/6
b. 1
c. 4/6
d. 2/6

132. A bag contains 5 red, 3 white and 6 green balls. Three balls are randomly drawn.
What is the probability that a red, a white and a green ball is drawn?
a. 24/91
b. 16/91
c. 29/91
d. 82/91

133. A bag contains 4 white and 6 black balls. Two balls are drawn out together. What
is the probability that both are black?
a. 1/4
b. 1/3
c. 2/6
d. 1/3

134. Four cards are drawn from a pack. Find the probability that there is one card from
each suit
a. 0.10
b. 0.25
c. 0.64
d. 0.32
135. Given P(A) = 0.5 P(A ∩ B) = 0.2 Find the value of P (A U B) = ?
a. 3/5
b. 2/5
c. 6/9
d. 4/8

UNIT 3

Probability Distribution

136. For a given Binomial distribution, with n fixed if P < 0.5, Then
a. Poisson distribution will provide a good approximation
b. Poisson distribution will provide a bad approximation
c. Binomial distribution will be skewed left
d. Binomial distribution will be skewed Right
e. Binomial distribution will be symmetric

137. Suppose we have poisson distribution with λ = 2 Then probability of having

exactly 10 occurences is
a. 2-10 e10 /10!
b. 210 e2 / 2!
c. 102 e-10 / 10!
d. 210 e-2 / 10!

138. Which of the following is a characteristic of the probability distribution for any
random variable?
a. A probability is distributed for any random
b. The sum of all probabilities is 1
c. No given probability occurs more than once
d. All of these
e. a and b

139. Which of the following could be Never described by Binomial distribution

a. The No. of defective widgets
b. The amount of water used daily
c. The No. of people in your class who answer this question correctly
d. All the above

140. If P = 0.4 for a particular B. d, The calculation 7! (0.4)3 (0.6)4

3! X 4!

Gives the probability of getting

a. Exactly three successes in seven trails
b. Exactly four successes in seven trails
c. Three or more successes in seven trails
d. Four or more successes in seven trails
e. None of the above

141. For a binomial distribution with p=0.2

a. A distribution for n = 2000 would more closely approximate the Normal
distribution than one for n = 50
b. No matter what the value of n, The distribution is skewed to the right.
c. The graph of this distribution with p=0.2 and n=100 would be the exact reverse of
the graph for the binomial distribution with n=100 & p=0.8
 d. All of these
e. a and b

142. Which of the following is a necessary condition for use of a poisson distribution
a. Probability of one arrival per second is consistent
b. The No. of arrivals in any 1 second Interval is independent of arrivals in another
intervals
c. The probability of two or more arrivals in the same second is zero
d. All of these
e. None of these

143. In which case would the poisson distribution be a good approximation of binomial
a. n=40, p=0.32
b. n=40, q=0.79
c. n=200, q=0.98
d. n=10, q=0.98
e. n=10, p=0.03
f. a and c
g. all of these

144. A binomial distribution may be approximated by a poisson distribution If

a. n is large & p is large
b. n is small & p is large
c. n is small & p is small
d. None of these
e. A and b

145. The standard deviation of a binomial distribution depends on

a. Probability of success
b. Probability of failure
c. Number of trials
d. a and b
e. b and c
f. a, b & c

146. The weighted average of the outcomes of an experiment is referred to as the

_________
a. Random value
b. Probability value
c. Expected value
d. None

147. The distribution that deals only in successes and failures is referred to as the
_______ distribution
a. Binomial distribution
b. Poisson distribution
c. Normal distribution
d. Exponential distribution

148. When approximating a binomial distribution by a Normal distribution, a

__________ correction factor should be used
a. Discrete
b. Continuity
c. Random
d. Probability
149. The mean (µ) of Binomial distribution is calculated by formula
a. nq
b. np
c. npq
d. √npq

150. The standard deviation of Binomial distribution (σ) is given by

a. nq
b. np
c. npq
d. √npq

151. For a poisson distribution, the symbol that represents the mean number of
occurances per interval of time is _________
a. µ
b. λ
c. σ
d. α

152. A list of probabilities of outcomes that could result If an experiment were

performed is called a _________
a. Sample space
b. Theoretical distribution
c. Random experiment
d. Probability distribution
e. Both b and d

153. The two parameters necessary to describe a Normal distribution are ______ &
______
a. Mean & median
b. Mean & mode
c. Median & Standard deviation
d. Mean & Standard deviation

154. A _______ variable is a variable that assumes different values according to

results of an experiment
a. Probability
b. Discrete
c. Random
d. Normal

155. The formula to calculate standard normal variable (2) is given by

a. X-µ/σ
b. X -σ/µ
c. µ-σ/X
d. None

156. If the expected profit of a business firm for January 2005 is Rs. 10 lakh Then the
profit for February will be
a. Rs. 10 Lakh
b. Less than Rs. 10 lakh
c. More than Rs. 10 lakh
d. None
157. The standard deviation of binomial distribution depends on
a. Probability of success
b. Probability of failure
c. Number of trails
d. All the above

158. In the context of Binomial distribution. If on an average 8 ships out of 10 arrive

safely at ports and 150 ships have returned safely. The mean is
a. 80
b. 100
c. 120
d. 150

159. A Normal distribution curve is

a. Symmetrical
b. Has a single peak
c. Mean located at centre
d. Mean, median & mode are same
e. All the above

160. If a normal distribution has µ = 25 and the mode will be _______

a. 15
b. 50
c. 25
d. None

161. Suppose the probability of dialing a wrong number is 0.05. then the probability of
dialing exactly 3 wrong numbers in 100 trials is
a. 0.18
b. 0.23
c. 0.14
d. 0.27

162. For a Binomial distribution, n=10, p=0.4 Find Standard deviation

a. 1.48
b. 1.96
c. 2
d. 1.46

163. For a binomial distribution, n=12 and p=0.45 find P(r=8)

a. 0.0762
b. 0.846
c. 0.924
d. 0.8456

164. Find P(r > 4)

a. 0.78
b. 0.6955
c. 0.34
d. 0.82

165. Find P[ r ≤ 10]

a. 1
b. 0.9989
c. 0.428
 d. 0.634

166. Find mean and standard deviation of following Binomial distribution n=16, p=0.40
a. 6.4, 1.9
b. 6.8, 1.42
c. 6.9, 1.9
d. 6.4, 2.4

167. The probability of dialing a wrong number is 0.05, What is the probability of
dialing exactly 3 wrong numbers in 100 dials?
a. 0.82
b. 0.62
c. 0.14
d. 0.43

168. X is distributed normally with µ = 5 and σ = 2. find the value of P(Z = 8)

a. 1.5
b. 2.0
c. 4.3
d. 4.9

169. In a Binomial distribution, x = 2, n = 4 and p = 1/3. then P(x = 2) = ?

a. 0.296
b. 0.456
c. 0.896
d. 0.143

170. The Number of accidents in a year attributed in a city follows poisson distribution
with mean 3 out of 1000 Taxi drivers, find approximate No. of drivers with No accident

UNIT 4

Sampling & Sampling Distribution

171. Which of the following is a method of selecting samples from population

a. Judgement sampling
b. Random sampling
c. Probability sampling
d. All of these
e. a&b

172. Choose the pair of symbols that best completes this sentence _____ is a
parameters, whereas ________ is a statistic
a. N, µ
b. Σ, S
c. N, n
d. All of these
e. B & c

173. In random sampling. We can describe mathematically how objective our

estimates are, why is this?
a. We always know the chance that any population element is included in the
sample
b. Every sample always has an equal chance of being selected
 c. All the samples are of exactly same size
d. None of these
e. a and b

174. Suppose you are performing stratified sampling on a particular population ?&
have divided it into strata of different sizes. How can you now make your sample
selection?
a. Select at random an equal number of elements from each stratum
b. Draw equal No. of elements from each stratum and weigh the results
c. Draw numbers of elements from each stratum proportional to their weights
d. a and b
e. b and c

175. In which of the following situations would σx = σ / √n be the correct formula to use
for computing σx ?
a. Sampling is from Infinite population
b. Sampling is from finite population with replacement
c. Sampling is from infinite population without replacement
d. a and b
e. b and c

176. The dispersion among sample means is less than the dispersion among the
sampled items themselves because
a. Each sample is smaller than population
b. Very large value are averaged down
c. Sampled items are all drawn from the same population
d. None of these
e. b and c

177. Suppose that a population with N = 144 and µ = 24. What is the mean of the
sampling distribution of mean for samples of size 25?
a. 24
b. 2
c. 4.8
d. Cannot be determined

178. The control limit theorem assures us that the sampling distribution of mean
a. is always Normal
b. is always normal for large sample sizes
c. approaches normality as sample size increases
d. appears normal only when N > 100

179. The finite population multiplier does not have to be used when the sampling
fraction is
a. Greater than 0.05
b. Greater than 0.50
c. Less than 0.50
d. Greater than 0.90
e. None of these

180. The standard error of the mean for a sample size of two or more is
a. Always greater than Standard deviation
b. Generally greater than Standard deviation
c. Usually less than Standard deviation
d. None of these
181. A border patrol check point that stops every passenger van is using
a. Simple Random sampling
b. Systematic sampling
c. Stratified sampling
d. Complete enumeration

182. In a Normally distribution population. The sampling distribution of the mean

a. Is normally distributed
b. Has a mean equal to population mean
c. Has a Standard deviation equal to population Standard deviation divided by
square root of sample size
d. All the above
e. Both a and b

183. A portion of the elements in a population chosen for direct examination or

measurement is a ____________
a. Event
b. Sample
c. Error
d. Enumeration

184. The proportion of the population contained in a sample is the _________

a. Sampling fraction
b. Event fraction
c. Measurement fraction
d. None

185. ___________ is the process by which inferences about a population are made
from information about a sample
a. Mathematical inference
b. Statistical inference
c. Probability inference
d. None

186. The __________ is the distribution obtained by finding the sampling distribution
of all samples of given size of population
a. Theoretical sampling distribution
b. Probability distribution
c. Poisson distribution
d. Estimation

187. _______ sampling should be used when each group considered has small
variation within itself but there is wide variation between different groups
a. Stratified
b. Systematic
c. Precised
d. None

188. A method of random sampling in which elements are selected from the population
at uniform intervals is called __________ sampling
a. Stratified
b. Systematic
c. Precised
d. None
189. __________ is the degree of accuracy with which the sample mean can estimate
the population mean
a. Relative
b. Measure
c. Precision
d. None

190. A sampling distribution of the proportion is a probability distribution of the

_________
a. Random proportions
b. Sample proportions
c. Irregular proportions
d. None

191. Which of the following is NOT a probability sample design?

a. Stratified sample
b. Multi-stage sample
c. Cluster sample
d. Quata sample

192. Why is a census survey not popular?

a. It is very costly
b. It takes more time
c. It requires large No. of investigators
d. All of the above

193. How many different sample of size 3 can be taken from population comprising 5
elements
a. 7
b. 12
c. 5
d. 10

194. Suppose that for a certain population, σ-x is calculated as 30 when a sample size
225 is taken, what would be the value of σ for this infinite population?
a. 500
b. 400
c. 450
d. 600

195. Suppose that a population with N = 200 has µ = 30. What is the mean of the
sampling distribution of mean for samples of size 40?
a. 40
b. Not possible
c. 25
d. 30

196. The precision of proportion as an estimator of the population proportion is the

minimum when it is
a. 0.75
b. 0.25
c. 0.50
d. None
197. The standard deviation of a certain population is about 5 units. How large a
simple random sample should be of the standard error of the sample mean is to be 1?
a. 25
b. 30
c. 40
d. 60

198. A group of 10 students are to be divided into 2 groups of 5 each and seated at
two tables. How many different ways are there of dividing 10 students?
a. 250
b. 251
c. 252
d. 254

199. Find σ-x, If σ = 10, n = 25

a. 2
b. 4
c. 6
d. 8

200. Assume that standard deviation (σ) is 300 and n is 25. Calculate standard error of
sample mean
a. 40
b. 60
c. 80
d. 100

UNIT 5
Estimation

201. A good estimation should be

a. Unbiased
b. Consistent
c. Efficient
d. Sufficient
e. All of these

202. Suppose that 160 persons were asked whether they linked a certain TV
programme of these 40 persons said they liked it and 120 said they did not like it.
Assuming like means a success which of the following is correct?
a. P = 0.75
b. P = 0.25
c. P = 0.25
d. P = 0.33

203. Assuming a sample is taken and its mean is calculated as 240. For a 90%
confidence level for µ. The upper limit comes to 280. What is the lower limit of this
confidence
a. 220
b. 240
c. 200
d. Cannot be determined

204. For using a t distribution table, which of the following is a necessary condition
a. The population is large
 b. σ is not known and S is known
c. n is small
d. all of these
e. b and c

205. If the population proportion is not known. The standard error of the proportion can
be estimated by using the formula
a. √pq / n
b. √npq
c. √pq/n
d. √npq

206. The Standard deviation of the sampling distribution of a statistic is called

a. Mean error
b. Sampling error
c. Standard deviation
d. Standard error

207. Which part of area under the Normal curve is represented by coefficient Z ?
a. Right tail
b. Left tail
c. Both tails
d. None

208. Maximum likelihood estimator of population mean of a Normal distribution is

a. x
b. nx
c. x/n
d. None

209. When the sample size is large and Standard deviation is known, then the interval
estimate is given by the formula
a. x ± Z Sx
b. x ± Z σ x
c. x ± t σ x
d. x ± t sx

210. Given x = 60, s = 10 and n = 100, then the standard error of sample mean is
a. 1.96
b. 1
c. 10
d. None

211. A sampling distribution is the distribution of

a. Mean
b. Variance
c. Statistic
d. Parameter

212. A single number used to estimate an unknown population parameter is a(n) is

__________ estimate
a. Point
b. Scale
c. Precision
d. None
213. A range of values used to estimate an unknown population parameter a(n) is
_____ estimate
a. Point
b. Interval
c. Precision
d. None

214. Once we known something about a sample. The number oif values in the sample
we can specify freely is called _______
a. Degree of freedom
b. Degree of sample
c. Degree of probability
d. None

215. The family of probability distribution used when the population distribution used
when the population standard deviation is unknown, the sample size is small, and the
values approximate the Normal is the ___________
a. F test
b. Student’s t test
c. Z test
d. Sample test

216. When we give an interval estimate of a population parameter, we show how sure
we are that the Interval contains the actual population parameter by setting a
_________ level
a. Interval
b. Binomial
c. Confidence
d. None

217. The upper confidence Limit and lower confidence limit are the same _________
from the ________
a. Distance, mean
b. Distance, Standard deviation
c. Distance, median
d. Distance, variance

218. Theoretically, the _______ distribution is the correct distribution to use in

constructing confidence intervals to estimate a population proportion.
a. Binomial
b. Poisson
c. Normal
d. None

219. In the absence of additional information, a value of ________ should be used for
p when determining a sample size for estimating a population proportion
a. P = 0.5
b. P = 0.6
c. P = 0.4
d. P = 0.2

220. Point estimate of population mean is

a. µ
b. µ
 c. x

d. X

UNIT 6
Testing of Hypothesis

221. When the Null Hypothesis is H0 : µ = 50, then the alternative hypothesis will be
a. H1: µ = 49
b. H1: µ < 50
c. H1: µ ≠ 50
d. H1: µ ≥ 50

222. For a Two – Tail test Hypothesis at α = 0.05, the acceptance region is
a. b/n Two critical values
b. outside the two critical values
c. To left of + ve critical value
d. To the right of negative critical value

223. When a null hypothesis is rejected, then it is possible that

a. Type III error has been made
b. Correct decision
c. Neither a nor b
d. Both a & b
e. None

224. For a two-tail when n is large the value of Z at 0.05 level of significance is
a. 1.645
b. 2.58
c. 1.96
d. None of these

225. Supposing that while testing a hypothesis we think that Type I error will be much
costlier than Type II error, which of the following values of α should we adopt?
a. 0.5
b. 0.1
c. 0.05
d. 0.01

226. When α is changed from 0.5 to 1, the probability of rejecting a Null Hypothesis
that is actually True
a. Increases
b. Remains same
c. Decreases
d. All of these

227. A choice of an appropriate significance level is made by examining the cost of

a. Type II error
b. Type I error
c. Performing the Test
d. b and c
e. a and b
f. a and c
228. When a Test of Hypothesis Involves the mean of a normal population with a
known standard deviation, the comparison should be between
a. Observed value of x with critical value of Z
b. Observed value of Z with critical value of X
c. The observed value of Z with critical value of Z
d. Observed value of X with critical value of X
e. Either c or d

229. Assuming that we want to test whether a population mean is significally smaller
or larger than 50, what should be our alternative Hypothesis?
a. µ < 50
b. µ > 50
c. µ ≠ 50
d. Not possible

230. In a hypothesis test, α = 0.05, β = 0.10 the power of test is

a. 0.95
b. 0.10
c. 0.90
d. None

231. For testing P1 = P2 is a large sample, the proper test is

a. T test
b. Z test
c. F test
d. None

232. Observed x values and critical Z values cannot be compared directly because
they are on two different ________
a. Ratings
b. Scales
c. Values
d. None

233. In order to use the t distribution to test hypothesis about a population mean, we
must assume the population is _________ distributed & that its standard deviation is
_______
a. Normally, unknown
b. Poisson, known
c. Binomial, unknown
d. Poisson, unknown

234. To be assured that a hypothesis test is working correctly, we would like the values
of 1 – β to be close to ______ as possible
a. 1
b. 0
c. 0.5
d. 0.25

235. The power of test refers to the Test’s ability to _________

a. Accept
b. Reject
c. Both a & b
d. None
236. The power of test refers to the test’s ability to reject _______ Hypothesis
a. Null
b. Alternative
c. Both a & b
d. None

237. An assumption or speculation made about the value of a population parameter is

a _____________
a. Failed
b. Unfailed
c. Both a & b
d. None

238. Accepting a Null Hypothesis, when it is False is a Type ______ error

a. I
b. II
c. I & II
d. None

239. Rejecting a Null Hypothesis, When it is True is a Type ______ Error

a. I
b. II
c. I & II
d. None

240. Type I error is denoted by __________

a. α
b. β
c. δ
d. None

241. Type II error is denoted by __________

a. α
b. β
c. δ
d. None

242. The assumption about a population parameter that we wish to test is

_____Hypothesis
a. Null
b. Alternative
c. a & b
d. None

243. A hypothesis test involving two rejection regions is called _________

a. One - tail test
b. Two – tail test
c. Both a & b
d. None

244. If the Null Hypothesis µ = 10 and the alternative hypothesis µ > 10, then the
approximate test to use is a ______ test.
a. Right tail
b. Left tail
c. Z test
 d. t test

245. For any distribution, If n 30, the most approximate test would be _______
a. t test
b. Z test
c. f test
d. X2 test

UNIT 7
Chi-Square & ANOVA

246. A Chi-square value can Never be Negative because

a. The observed frequencies cannot be –ve
b. Difference b/n observed and expected frequencies are squared
c. The sum of differences is computed
d. None of these

247. A contingency Table for a chi-square test has 5 columns and 4 rows. How many
degree of freedom should be used?
a. 20
b. 9
c. 15
d. 12

248. In a chi-square contingency table, the expected frequency of a cell can be

calculated from the expected proportion for the cell by
a. Multiplying Total sample size
b. Multiplying by Row’s Total
c. Multiplying by column’s Total
d. None

249. While performing a chi-square hypothesis we find that several cells have Too
small expected frequencies what will be its impact?
a. Degrees of freedom are considerably reduced
b. Rejection of Null Hypothesis will be more frequent
c. The value of chi-square will be over estimated
d. None of these
e. b and c

250. For any given total of significance, the table value of chi-square
a. Declines as degrees of freedom increases
b. Increases as degrees of freedom increases
c. Increases as sample size increases
d. Declines as sample size increases

251. A contingency Table should have frequencies in

a. Percentages
b. Mean values
c. Proportions
d. Frequencies

252. The degree of freedom for a contingency table on the basis of

a. N – 1
b. C – 1
c. R – 1
 d. (r – 1) (c – 1)

253. To perform chi-square Test

a. Data confirm to a Normal distribution
b. Data be measured on a Nominal scale
c. Each cell has a equal No. of frequencies
d. All of these

254. A contingency Table

a. Always has 2 degrees of freedom
b. Always has 2 variables
c. Always has 2 dependent variables
d. All of these

255. The acceptance of Null Hypothesis indicates

a. A correct decision
b. Type II error
c. Type I error
d. Either a or c

256. In a one-way analysis of variance. The sum of squares is obtained by

a. SST – SSB
b. SST + SSB
c. SSB – SST
d. None of these

257. The F Ratio shows

a. Two estimates of population mean
b. One estimate of population mean & one estimate of population variance
c. Two estimates of population variance
d. Both a & c
e. None

258. A step in performing ANOVA is to determine

a. An estimate of the population variance from among the sample means
b. An estimate of population variance within the sample
c. Difference between expected and observed frequency for each class
d. a and b
e. b and c

259. Given n1 = 20, n2 = 15 and a = 0.10 a two tail test in ANOVA is to be performed
which of the following represents the upper value to which S1 2 / S22 should be
compared?
a. 1 / F(19, 14, 0.05)
b. 1 / F(19, 14, 0.95)
c. 1 / F(9, 14, 0.05)
d. F(14, 19, 0.05)

260. Any difference among the population means in ANOVA will result into an
increased expected value of
a. MSB
b. MSW
c. MSE
d. All of these
261. The degree of freedom between samples for K samples of size n will be
a. n–1
b. nk – 1
c. k–1
d. none of these

262. The error sum of squares can be obtained fro the equation
a. SSE = SSR + SSC – SST
b. SSE = SST + SSR + SSC
c. SSE = SST – SSR – SSC
d. None of these

263. If the data are displayed in rows & column in a two-way classification, then the
degree of freedom will be
a. c – 1
b. r – 1
c. (r – 1) (c – 1)
d. C(r – 1)
e. None

264. Which is the assumption of analysis of variance?

a. The samples drawn from the population are random
b. The data are quantitative & are normally distributed
c. The variance of the population from which samples have been drawn are equal
d. a and b
e. a, b and c

265. The mean for the entire group of subjects from all the samples in an experiment
is called _______ mean
a. Grand
b. Simple
c. Multiple
d. None

266. A statistical technique used to Test the equality of three or more population
means is called _________
a. ANOVA
b. X2
c. t test
d. F test

267. A test of _________ is used to determine whether membership in the categories

of one variable is different as a function of membership in the categories of a second
variable?
a. Dependence
b. Independence
c. ANOVA
d. None

268. A family of distributions differentiated by two parameters and used primarily to

test hypothesis regarding variances is called _________ distribution
a. t
b. F
c. Z
d. None
 269. The ________ test determines whether there is a significant difference between
the observed and hypothesized distributions for a sample
a. Z test
b. Goodness – of – fit
c. t – test
d. poisson

270. Analysis of variance compares the _______ with the ___________ to get
________ statistic
a. Within column variance, b/n C. V, F
b. WCV, BCV, T
c. WCV, BCV, Z
d. BCV, WCV, Z

271. The No. of degrees of freedom in the denominator of the F ratio is calculated by
subtraction the ___ from the ______
a. No. of samples, TSP
b. TSP, No. of samples
c. Random, Integer
d. None

For the given problem. It consists of 5 plots and 4 varieties of treatment

Treatment
Plot No 1 2 3 4
1 42 48 68 80
2 50 66 52 94
3 62 68 76 78
4 34 78 64 82
5 52 70 70 66

272. The value of SST will be

a. 4800
b. 4236
c. 4700
d. 4336

273. The value of SSC will be

a. 2580
b. 2584
c. 2586
d. 2590

274. The value of SSE will be

a. 1670
b. 1656
c. 1684
d. 1693

275. The value of MSC will be

a. 860
b. 870
c. 840
d. 855
276. The value of MSE will be
a. 102
b. 103.5
c. 104
d. 105.5

277. The degree of freedom between samples is

a. 3
b. 4
c. 5
d. 6

278. The degree of freedom within samples is

a. 18
b. 16
c. 19
d. 20

279. The value of F test is

a. 8.9
b. 8.3
c. 8.6
d. 8.5

280. The table value of F(3, 16) @ 0.05 will be 3.24 So the hypothesis will be
a. Accepted
b. Rejected
c. Cannot determine
d. None

UNIT 8
Simple Correlation & Regression

281. While solving a problem, we get an estimating equation Y = 10 – 4x, which of the
following indicates this situation
a. Slope of line is negative
b. The Y- intercept of the line is 4
c. There is an inverse relationship
d. a and c
e. a and b

282. When the regression line of Y on X and the regression line of X on Y from a 90 0
angle
a. r = ±1
b. r=0
c. r = ±05
d. None

283. Assuming that after solving a problem you have obtained the regression equation
which calculated a is 6 ad b is 3 The problem relates to one dependent & one
independent variable. If the dependent variable has a value of 5. What should be the
value of dependent variable?
a. 15
b. 18
 c. 10
d. 21

284. Which of the following shows the most correct variation of the Y values around
the regression lines
a. Σ Y ( Y – Y )2
b. Σ (Y + Y) 2
c. Σ(Y + ^Y) 2
d. Σ (Y – ^Y) 2

285. When we divide S(Y – Y)2 by S(Y – Y)2 the resultant figure shows:
a. Fraction of Total variation in Y
b. Fraction of Total variation on account of changes in X
c. Fraction of total variation in Y remains line explained
d. None

286. What will be the range of r when we find that the dependent variable increases as
the independent variables increases?
a. 0 – 0.05
b. 0 – 2
c. 0.1 – 1
d. None

287. When 2 regression lines coincide then r is

a. 0
b. -1
c. 1
d. 0.5
e. None

288. Which of the following is True if the estimating equation has to be a perfect
estimator of the dependent variable?
a. The coefficient of determination is -1
b. All the data points are on regression line
c. The standard error of estimate is zero
d. b and c
e. a, b and c

289. While testing regression relationship we formulate H 0: B = 0 and H1: B1 0. which

of the following has to be calculated first to verify H 0?
a. Sp
b. Sb
c. Se
d. No. particular order is required

290. Coefficient of determination r2 can be written as

a. SST / SSR
b. 1 – (SSE / SST)
c. SSR / SST
d. b and c
e. None

291. Assuming Y as advertising expeditions and X as sales, which is the correct

expression of regression of Y on x?
 a. (X – X) = r σy (Y – Y)
σx
b. (Y – Y) = r (x – x)
c. (Y – Y) = r σy (x – x)
σx
d. (Y – Y) = σy (x – x)
σx

292. A scatter diagram is

a. Statistical test
b. Linear
c. Curvilinear
d. A graph showing x & y values

293. Which of the following correlation coefficient shows the Highest degree of
association?
a. 0.9
b. 0.95
c. -0.89
d. -1
e. 1
f. Both d & e

294. Which of the following correlation coefficient shows the lowest degree of
association
a. -0.95
b. 0.75
c. 0.38
d. 0.1

295. Which of the following measurement scales is required for the valid calculation of
Karl pearson’s correlation coefficient?
a. Ordinal
b. Interval
c. Ratio
d. Nominal

296. The value of r2 for a particular situation is 0.81 What is the coefficient of
correlation
a. 0.81
b. 0.9
c. 0.09
d. None

297. Which of the following is the Highest range of r?

a. 0 and 1
b. -1 and 0
c. -1 and 1
d. None

298. When the correlation coefficient between x and y positive. Then as variable x
decreases variable Y
a. Remains same
b. Increases
c. Decreases
 d. Changes linearly

299. Which of the following measurement scales is required for the valid calculation of
spearman correlation coefficient?
a. Ordinal
b. Interval
c. Nominal
d. Ratio

300. Many studies show that advertising expenditure and sales have a high degree of
positive association. Which of the following correlation coefficient is consistent with the
above statement?
a. – 0.8
b. 0.4
c. -0.3
d. 0.75

Q 301 – 304
X 20 16 12 8 4
Y 22 14 4 12 8

301. Calculate the value of Σ x2

a. 860
b. 870
c. 880
d. 900

302. The value of Σ XY will be

a. 840
b. 860
c. 880
d. 900

303. The value of Σ Y2 will be

a. 900
b. 900
c. 860
d. 904

304. The value of r will be

a. 0.70
b. 0.68
c. 0.79
d. 0.82

305. If r12 = 0.8, r13 = 0.6, r23 = 0.5 find r13.2

a. 0.385
b. 0.456
c. 0.924
d. 0.846

306. Calculate r23.1 if r12 = 0.60

a. 0.137
b. 0.426
c. 0.856
 d. 0.921

Q 307 – 310
The following results were worked out from scores in statistics & mathematics in a certain
examination
(Stat) X (Maths) Y
Mean 40 48
Standard Deviation 10 15

307. Find out he value of bxy

a. 0.279
b. 0.624
c. 0.367
d. 0.487

308. Find out the value of byx

a. 0.81
b. 0.63
c. 0.92
d. 0.46

309. Find the value of Y when X = 50

a. 54.3
b. 59
c. 61
d. 64

310. Find the value of X when Y = 30?

a. 42
b. 35.51
c. 46
d. .48

UNIT 9
Business Forecasting & Time series

311. Which of the following components a time series having annual data contains?
a. Secular trend
b. Cyclical fluctuation
c. Seasonal variation
d. All of these
e. a and b not c

312. Suppose that a Time series analysis with annual data for 1996 – 2004 gives the
equation Y = 20 + 6x + 8x2 on the basis of equation, what is the forecast for 2005?
a. 200
b. 250
c. 230
d. 220

313. Suppose you have a times series data on quarterly basis for 2 years 2003 and
2004. the third quarter of 2004 would be coded as
a. 3
b. 5
c. 6
 d. 7

314. When a time series has an even number of years which are coded, then each
coded interval is of
a. One month
b. One year
c. Two years
d. Six months

315. Which one of the following is not a quantitative method of forecasting?

a. Exponential smoothing
b. Auto regressive method
c. Input – output analysis
d. Delphi – method

316. Which of the following components is used for short – term forecast?
a. Cyclical
b. Trend
c. Seasonal
d. None

317. After detrending, a multiplicative model of time series is represented as

a. Y = TSI
b. Y = TSCI
c. Y = TCI
d. Y = SCI
e. None

318. Which of the following methods is used for measuring seasonal variation?
a. Method of simple averages
b. Moving average method
c. Ratio to trend method
d. Link, relative method
e. All of this

319. Suppose a seasonal index for a particular month is greater than 100. then the
following must be True
a. SI for some other month > 100
b. SI for some other month = 100
c. SI for some other month < 100
d. B and c
e. None

320. In time series analysis both trends and seasonal variations are studied because
they
a. Describe past patterns
b. Maximum error of forecast
c. Allow the elimination of component from the series
d. All of the above

321. The standard error of estimate in a forecast using regression analysis, shows
a. Time period for which the forecast is valid
b. Maximum error of forecast
c. Overall accuracy of forecast
d. All of the above
322. Which of the methods is used to eliminate C from TSCI
a. Spearman analysis
b. Second – degree analysis
c. Relative cyclic residual
d. None

323. A Long range forecast implies that the forecast is for the time period
a. At least 1 year
b. Between 1 & 3 years
c. Broadly 5 & More years
d. B/n 3 and 5 years

324. Before attempting any time series forecast, one must consider
a. Extent of accuracy desired
b. Data required
c. Availability of time
d. a and b
e. a, b and c

325. Which of the following methods is not a subjective method of forecast?

a. User’s expectations
b. Jury of executives
c. Box – Jenkins model
d. Delphi method

326. Using seasonal indices to remove effects of seasonality from a time series known
as _______ time series
a. Regulating
b. Deseasonalizing
c. Trend
d. Seasonal

327. The first step in computing the seasonal indices for some times- series data is to
calculate the ______
a. Two - quarter moving Total
b. Four - quarter moving Total
c. Three - quarter moving Total
d. None

328. The steady increase in the cost of living recorded by CPI is an example of a
______
a. Cyclical trend
b. Secular trend
c. Seasonal trend
d. Irregular trend

329. The result of discarding the highest and lowest values before averaging is called
a ________
a. Modified data
b. Modified mean
c. Modified range
d. Modified median

330. A ___________ is a projection of past patterns into the future

 a. Project
b. Forecast
c. Estimate
d. None

UNIT 10
Index Numbers

331. If one wants to measure changes in Total monetary worth, then the right choice
should be
a. Quantity index
b. Value index
c. Price index
d. None

332. Commodities which show considerable price fluctuations could be best measured
by
a. Quantity index
b. Value index
c. Price index
d. None

333. Which of the following can be considered as Normal base period?

a. Recent period
b. Remained free from inflation / deflation
c. Average of Two
d. Neither at peak nor at base

334. Which of the following is used as weights in a quantity index?

a. Average of qualities
b. Percentages of total qualities
c. Prices
d. None

335. The aggregate price index that uses base year quantities as base is
a. Passche’s index
b. Laspeyer’s index
c. Fishers’ index
d. None

336. The two price indices P01 and P10 when multiplied satisfy the following test
a. Factor reversal Test
b. Time reversal test
c. Circular test
d. None

337. A time reversal test is satisfied If we use

a. Mode
b. Arithmetic mean
c. Geometric mean
d. None

338. Which of the following index satisfies circular test?

a. Laspreys test
b. Paasche’s test
 c. Weighted aggregate method
d. None

339. For the three years 95, 96 & 97, the fixed base index nos., were 100, 125 and
150 What would be the chain base index for 1997?
a. 160
b. 130
c. 120
d. 140
e. None

340. Which of the following is a quantity index?

a. ΣP1q1 x 100
ΣP0q0
b. ΣP1q0 x 100
ΣP0q0
c. ΣP0q1 x 100
ΣP0q0
d. ΣP0q1 x 100
ΣP1q1

341. Which of the following is the paasche’s price index?

a. ΣP1q0 x 100
ΣP0q0
b. ΣP1q1 x 100
ΣP1q0
c. ΣP1q1 x 100
ΣP0q0
d. ΣP1q1 x 100
ΣP0q1
e. None

342. Which one of the following is the circular test?

a. P01 x Q01 = V01
b. P01 x P12 = P02
c. P01 x P10 = 1
d. None

Q. No. 343 – 347

1986 1996
Commodity Price Value Q Value
A 10 1500 160 1760
B 12 1080 100 1300
C 15 900 60 960
D 9 450 40 480

343. Lapsprey’s price index will be equal to

a. 116
b. 111.45
c. 114
d. 120

344. Paasche’s Index Number will be equal to

a. 112
 b. 110.84
c. 116
d. 119

345. Fisher’s Index Number will be equal to

a. 116
b. 111.14
c. 113
d. 119

346. The value of ΣP0q0 is

a. 3930
b. 4000
c. 4100
d. 4200

347. The value of ΣP1q1 is

a. 4750
b. 4500
c. 4800
d. 6000

348. The index Number for 1990 is ___________ if the base year 1982 is 200
a. 150
b. 100
c. 200
d. 250

349. IF ΣP1q1 = 100, ΣP0q0 = 200, Find the value of V

a. 100
b. 50
c. 150
d. 200

350. If ΣQ1P0 = 100, ΣQ0P0 = 200, find the value of Q01.

a. 50
b. 100
c. 150
d. 200

Answer Keys

1. d
2. d
3. d
4. c
5. c
6. c
7. d
8. d
9. c
10. c
11. a
12. d
13. a
14. c
15. d
16. b
17. a
18. b
19. c
20. d
21. b
22. c
23. e
24. f
25. e
26. c
27. c
28. a
29. a
30. c
31. d
32. d
33. e
34. f
35. e
36. a
37. a
38. c
39. a
40. a
41. d
42. b
43. c
44. c
45. a
46. a
47. a
48. b
49. a
50. c
51. c
52. c
53. a
54. c
55. c
56. c
57. a
58. c
59. b
60. b
61. d
62. a
63. a
64. b
65. a
66. a
67. c
68. a
69. b
70. c
71. a
72. b
73. a
74. d
75. c
76. c
77. b
78. a
79. c
80. b
81. b
82. a
83. a
84. b
85. a
86. a
87. b
88. c
89. a
90. d
91. c
92. b
93. d
94. c
95. b
96. c
97. b
98. e
99. a
100. d
101. c
102. c
103. e
104. e
105. d
106. b
107. d
108. b
109. d
110. a
111. d
112. a
113. c
114. a
115. d
116. b
117. c
118. d
119. d
120. c
121. b
122. d
123. a
124. d
125. b
126. d
127. a
128. a
129. a
130. b
131. a
132. a
133. b
134. a
135. a
136. d
137. d
138. e
139. b
140. a
141. d
142. d
143. c
144. d
145. f
146. c
147. a
148. b
149. a
150. d
151. b
152. e
153. d
154. c
155. a
156. d
157. d
158. c
159. e
160. c
161. c
162. a
163. a
164. b
165. b
166. a
167. c
168. a
169. a
170. a
171. d
172. b
173. e
174. e
175. d
176. d
177. b
178. a
179. c
180. e
181. d
182. d
183. b
184. a
185. b
186. a
187. a
188. b
189. c
190. d
191. d
192. d
193. d
194. c
195. d
196. c
197. a
198. c
199. a
200. b
201. e
202. c
203. c
204. e
205. a
206. d
207. d
208. a
209. b
210. d
211. c
212. a
213. b
214. a
215. b
216. c
217. a
218. a
219. a
220. a
221. c
222. a
223. b
224. c
225. d
226. c
227. e
228. e
229. c
230. c
231. b
232. b
233. a
234. a
235. b
236. a
237. a
238. b
239. a
240. a
241. b
242. a
243. b
244. a
245. b
246. b
247. d
248. a
249. e
250. b
251. d
252. d
253. b
254. b
255. d
256. a
257. c
258. d
259. c
260. a
261. c
262. c
263. c
264. e
265. a
266. a
267. b
268. b
269. b
270. a
271. a
272. b
273. a
274. b
275. a
276. b
277. a
278. b
279. b
280. b
281. d
282. b
283. d
284. d
285. c
286. c
287. c
288. d
289. c
290. d
291. d
292. c
293. d
294. f
295. d
296. b
297. b
298. c
299. c
300. b
301. c
302. a
303. d
304. a
305. a
306. a
307. a
308. b
309. a
310. b
311. b
312. b
313. d
314. d
315. c
316. d
317. e
318. c
319. d
320. c
321. d
322. c
323. e
324. c
325. c
326. b
327. b
328. b
329. b
330. b
331. b
332. a
333. d
334. c
335. b
336. c
337. c
338. c
339. d
340. c
341. c
342. d
343. b
344. b
345. b
346. a
347. b
348. b
349. b
350. a