Practice set Statistics for business decision making

Calculate the missing frequency from the following distribution, it being given that the median
of the distribution is 24.

Age in 0-10 10-20 20-30 30-40 40-50

years

No. of 5 25 ? 18 7
persons

If the rank correlation coefficient is 0.6 and the sum of squares of difference of ranks is 66, then
find the number pairs of observations.

Ten salesmen in a firm were put to a competency test. The test scores obtained by the sales
person and the monthly sales made by them are given below:

Test 30 60 40 50 70 40 80 30 50 50
Score
Monthly 25 50 35 45 55 30 60 30 40 30
Sales(Rs.
000)

A regression equation has to be developed for estimating the amount of monthly sales from the
test scores. On the basis of this regression equation what is the estimated monthly sales for a
salesman who scores 90 in the competency test?

The lines of regression of y on x and x on y are respectively

Y = x+5

16x – 9y = 94

What will be the standard deviation of x if the variance of y = 16

The finance manager of Crystal Technologies Ltd. Has collected the following data from past
records:
Average receivable balance(Rs. In lakh) Bad Debts(Rs. In’000)
49 94
54 125
56 118
60 117
64 150
71 140

The percentage of variations in bad debts that is explained by the variations in

average receivables balance?

The lines of regression of y on x and x on y are respectively

Y = x+8

16x – 9y = 100

Find the values of mean of x and mean of y

The arithmetic mean of a set of 10 numbers is 20. If each number is first multiplied by 2 and
then increased by 5, then what is the mean of new numbers?

The variance of a set of data is 9 and the arithmetic mean is 5. What is the coefficient of
variation?

The standard deviation and mean return of 4 securities A, B, C and D are given below:

Security A B C D
 Mean returns 10 15 20 25
Standard 0 10 20 30
Deviation

Which of the above securities is least consistent? C

The following data show the number of hours worked by 200 statistics students.
Number of Hours Frequency (3)
0-9 40
10 - 19 50
20 - 29 70
30 - 39 40
The number of students working 19 hours or less

The mean of a distribution is 23, the median is 24, and the mode is 25.5. It is most likely that
this distribution is: (2)

In constructing a histogram, if the class interval size of one class is double than others, then the
width of that bar should be (1)

a. Doubled
b. Half
c. One
d. Quarter

The average value of the lower and upper limit of a class is called (1)

a. Mid-Point
b. Class Boundary
c. Class Interval
d. Class Frequency

Cumulative Frequency Curve is also called (1)

a. Ogive
b. Frequency Curve
c. Histogram
d. Frequency Polygon

The graph of a frequency distribution is called (1)

 a. Curve
b. Historigram
c. Histogram
d. Ogive

A process by which we estimate the value of dependent variable on the basis of one or more
independent variables is called: (1)

a. Correlation
b. Regression
c. Residual
d. Slope

The scatter in a series of values about the average is called: (1)

a. Central tendency
b. Dispersion
c. Skewness
d. Symmetry

The measurements of spread or scatter of the individual values around the central point is
called: (1)

a. Measures of dispersion
b. Measures of central tendency
c. Measures of skewness
d. Measures of kurtosis

The measures used to calculate the variation present among the observations in the unit of the
variable is called: (1)

a. Relative measures of dispersion

b. Coefficient of skewness
c. Absolute measures of dispersion
d. Coefficient of variation

The measures used to calculate the variation present among the observations relative to their
average is called: (1)
(a) Coefficient of kurtosis

(b) Absolute measures of dispersion

(c) Quartile deviation

(d) Relative measures of dispersion

The degree to which numerical data tend to spread about an average value called: (1)

a. Constant
b. Flatness
c. Variation
d. Skewness

In descriptive statistics, we study (1)

a. The description of the decision-making process

b. The methods for organizing, displaying and describing data
c. How to describe the probability distribution
d. None of the above

Data in the Population Census Report is: (1)

a. Grouped data
b. Ungrouped data
c. Secondary data
d. Primary data
e. Arrayed data

The height of a student is 60 inches. This is an example of (1)

a. Qualitative data
b. Categorical data
c. Continuous data
d. Discrete data

In statistics, conducting a survey means (1)

a. Collecting information from elements

b. Making mathematical calculations
c. Drawing graphs and pictures
 d. None of the above

Which of the following is not based on all the observations? (1)

a. Arithmetic Mean
b. Geometric Mean
c. Harmonic Mean
d. Mode

In statistics, a sample means (1)

a. A portion of the sample

b. A portion of the population
c. All the items under investigation
d. None of the above

Calculate the missing frequency from the following distribution, it being given that the
median of the distribution is 168.
(4)

Class 50-10 100-15 150-20 200-25 250-30

interval 0 0 0 0 0

Frequencies 35 60 ? 40 20

The following table provides data about the percentage of students who have free
university meals and their CGPA scores. The Spearman’s Rank Correlation between the
two is (4)

State Pune Chenna Delhi Kanpur Ahmedaba Indore

University i d

Percentage 14.4 7.2 27.5 33.8 38.0 15.9

of students
having free
meals
 % of 54 64 44 32 37 68
students
scoring
above 8.5
CGPA

X 65 63 67 64 68 62 70 66 68 67 69 71
Y 68 66 68 65 69 66 68 65 71 67 68 70

Which of the following represent the best fit line of Y on X (6)

X y
Rs. Rs.
Arithmetic Mean 6 8
Standard Deviation 5 40/3
Coefficient of correlation between x and y = 8/15
What is the most likely value of y when x = Rs. 100 (4)

The ages (in years) of seven children and number of words in their vocabulary is given in
in the following table. What is the value of slope, m of the equation of regression line for
the given data? (6)
Age(X) 3 4 4 5 6 2 3
Vocabulary 1100 1300 1500 2100 2600 460 1200
size(Y)

The slope of x on y is

Difference between highest and lowest observation is 20 and coefficient of range is 0.077 then
sum of highest and lowest value is (3)
 In a distribution mode = 10, median = 12 and mean = 12 then the distribution is
(2)
a. normal
b. bell shaped
c. Positively skewed
d. Negatively skewed

. While constructing Frequency Distribution, the number of classes used depends upon
(1)
(a) Number of Observation
(b) Size of Class
(c) Range of Data
(d) None of These

A Histogram is a set of adjacent (1)

a. Rectangles
b. Triangles
c. Square
d. Lines

Dividing the upper and lower limits of a particular class we get (1)

a. Class Interval
b. Class Frequency
c. Class Boundary
d. Class Mark

Graph of time series data is called (1)

a. Polygon
b. Histogram
c. Ogive
d. Historigram

The predicted rate of response of the dependent variable to changes in the independent
variable is called: (1)

a. Slope
b. Intercept
c. Error
 d. Regression equation

The slope of the regression line of Y on X is also called the: (1)

a. Correlation coefficient of X on Y
b. Correlation coefficient of Y on X
c. Regression coefficient of X on Y
d. Regression coefficient of Y on X

In simple linear regression, the numbers of unknown constants are: (1)

a. One
b. Two
c. Three
d. Four

In simple regression equation, the numbers of variables involved are: (1)

a. 0
b. 1
c. 2
d. 3

. If the value of any regression coefficient is zero, then two variables are: (1)

a. Qualitative
b. Correlation
c. Dependent
d. Independent

The measures of dispersion can never be: (1)

a. Positive
b. Zero
c. Negative
d. Equal to 2

If all the scores on examination cluster around the mean, the dispersion is said to be: (1)

a. Small
 b. Large
c. Normal
d. Symmetrical

If there are many extreme scores on all examination, the dispersion is: (1)

a. Large
b. Small
c. Normal
d. Symmetric

Which of the following is an absolute measure of dispersion? (1)

a. Coefficient of variation
b. Coefficient of dispersion
c. Standard deviation
d. Coefficient of skewness

Individual respondents, focus groups, and panels of respondents are categorised as (1)
A) Primary Data Sources
B) Secondary Data Sources
C) Itemised Data Sources
D) Pointed Data Sources

The variables whose calculation is done according to the weight, height and length and weight
are known as: (1)
A) Flowchart Variables
B) Discrete Variables
C) Continuous Variables
D) Measuring Variables

Which one of the following measurement does not divide a set of observations into equal
parts? (1)
 a. Quartiles
b. Standard Deviations
c. Percentiles
d. Deciles
e. Comment on the skewness (5)

7 15 13 10 14 7 6
10 6 10 5 7 12 6
10 8 7 8 14 15 14
5 8 10 15 12 8 6
7 9 14 15 11 8 9
f.
g. a. Left skewed
h. b. right skewed
i. c. symmetric
j. d. insufficient data

Find the missing frequencies in the following frequency distribution if it is known that the mean of the
distribution is 50. (5)

X 10 30 50 70 90 Total
F 17 x 32 y 19 120

. The graph showing the paired points (Xi,Yi) is called a (1)

a. Scatter diagram
b. Histogram
c. Hitorigram
d. Pie Diagram

The first hand and unorganized form of data is called (1)

a. Secondary data
b. Organized data
c. Primary data
d. None of these
Ans c
The lowest value of variance can be (1)

a. 1
b. −1
c. 3
d. 0

The mean of 10 numbers is 9, then the sum (total) of these numbers will be (2)

a. 9
b. 0.9
c. 70
d. 90

The mean of 25 observations is 36. The mean of first 13 observations is 32 and that of last 13
observations is 39. What is the value of 13th observation? (3)
a. 20

b. 23

c. 32

d. 40

If X and Y are independent of each other, the Coefficient of Correlation is (2)

a. −1
b. 0
c. +1
d. None of these