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Stats MCQ - notes

business statistics (Institute of Management Technology, Ghaziabad)

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1. A numerical measure of linear association between two variables is the

Ans - Correlation coefficient

2. The sum of the percent frequencies for all classes will always equal

Answer – 100

3. In a cumulative relative frequency distribution , the last class have a cumulative

relative frequency equal to
Answer - relative frequency equal to 1
4. In a regression analysis, the variable that is being predicted
Answer - Is the depend variable

5. The t distribution applicable whenever

Answer - both a & b
Value for the probabilistic input to a simulation
Answer – C (are randomly generated based on historical information)

A test has been used to check the association between height and weight of the students.
what test it could be
Answer – regression/ANOVA

In case normal distribution following statement is

Area below mean is equal to 1

The level of significant

Is (1-confidence level)

_____test would test whether the population means

One tail hypothesis

in hypothesis testing the tentative assumption about the population parameter is

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The null hypothesis

If an interval estimate is said to be constructed at the 90% confidence level, the

confidence level coefficient would be

0.9

In the data set 1,2,3,5,7,9,2 by changing the 3 rd variable to 6

The mean and median are altered

In the standard normal distribution the range of value of z is from

Minus infinity to infinity

I have area where I wish to conduct the market survey

Stratifies sample

Which of the following provides a measure of central location of the data

Mean

Paramatric statistical test example are

t-test

The sampling error is the

Difference btwn the value of the sample mean and the value of the population mean

In hypohthesis testing, when calculated statistics cross the specified threshhold

In addition, law of potentially helpful when we are

Union of two event

Graphical representation in relation with two variable is

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A scatter diagram

A continues randam variable may assume

Any value in am interval or collection of interval

What type of data do you need for chi-square test

Categorical

A normal distribution with a mean of O and a standard daviation of 1 is called

A standard normal distribution

Which test will you use if you have a numerical variable and related sample

T-test

The most common graphical presentation of quantitative data is a

Histrogram

The data set 12, 13, 27, 18, 32 is

Right skeward

While studying the hights of particular population group

An Outliner

Tha variance is measure of depression or variability of a random variable, it is a

weighted average of the

Square root of the deviation of the mean

The numerical value of the standard daviation can never be

Negative

The age in an old-age home are follows 65,66,67,68,69,70,88,91,73,64,71. The mode of

ages in this home is

Does not exist

1. If the null hypothesis is false then which of the following is accepted ?

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Ans: alternate hypothesis

2. As the number of degrees of freedom for a t distribution increases, the difference between the t
distribution and the standard normal

a. becomes larger
b. becomes smaller
c. stays the same
d. None of these alternatives is correct.

3. If A and B are two mutually exclusive and exhaustive events with probability of A equal to 0.3,
then find probability of B

Ans: 0.7

4. _____Test would test whether the population mean is less than a specified value

a. One Tail Hypothesis

b. 2 tail hypothesis
c. both A and B
d. none of these

5. The interquartile range is used as a measure of variability to overcome what difficulty of range

a. the sum of the range variances is zero

b. the range is difficult to compute
c. the range is influenced too much by extreme values
d. the range is negative

6. What symbol is used to represent chi square

Ans: χ2

7. If random variable x is normally distributed with mean 20 and standard deviation 10, then for
what value of X, Z score is -2.5
a. 45
b. 5
c. 30.5
d. 25

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8. The data set is 12,13,27,18,32 is:

a. Right Skewed
b. Left Skewed

c. Symmetric

d. None of These

9. a theorem that allows us to use the normal probability distribution to approximate the
sampling distribution of sample means and sample proportion whenever the sample size is large is
known as

a. Approximation Theorem

b. Normal Probability Theorem

c.. Central Limit Theorem

10. If random variable X is normally distributed with mean 20 and standard deviation 10, then Z
score for X = 25

a. Z-score for X=25 is equal to 0.5

b. Z-score for X=25 is equal to -0.5

c. Z-score for X=25 is equal to 1.0

d. Z-score for X=25 is equal to -1.0

11. which test will you use if you have a numerical variable and related samples

a. paired t-test

13. Fifteen percent of the students in a School of Business Administration are majoring in
Economics, 20% in Finance, 35% in Management, and 30% in Accounting. The graphical device(s) that
can be used to present these data is(are)

a. a line graph

b. only a pie chart

c. only a bar chart

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c. both a bar chart and a pie chart

14. A test has been used to check association between the height and weight of student. what test
it could be?

a. Chi square

b. Anova

c. Regression

d. t-test

15. According to survey of adults 64% have money in the bank account if we were to survey 50
randomly selected adults, find the number of adults who would have bank savings account.

a. 12

b. 22

c.. 32 =(.64*50 = 32)

d. 42

16. if Hypothesis is reject at the 5% level, level of significance it

(a) Will always be rejected at the 1% level

(b) Will always be accepted at the 1% level
(c) Will never be tested at the 1% level
(d) May be rejected or not rejected at the 1% level

17. For a one-tailed hypothesis test (Upper Tail) the P-value is computed to be 0.34. if The test, is
being conducted at 95% confidence, the null hypothesis.

a. could be rejected or not rejected depending on the sample size

b. could be rejected or not rejected depending on the value of the mean of the sample

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c. is not rejected

d. is rejected

18. All the data collected in a particular study are referred to as

a. interference

b. Variable

c. data Set

d. None of the alternatives is correct

19. The numerical value of the standard deviation can never be

a. Larger than the variation

b. Zero

c.. Negative

d. Smaller than the variance

20. A simulation model uses the mathematical expression and the logical relationship of

a. real system.

b. computer model.

c. performance measures.

d. estimated inferences.

21. In hypothesis testing if the null hypothesis is rejected

a. No conclusion can be drawn from the test

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b. The alternate hypothesis is true

c. the date must have been accumulated incorrectly

d. the Sample size has been too small

22. If the null hypothesis is; μ < 70, then the test will be

Ans: None of these Correct ans : One tail

23. In hypothesis testing the tentative assumption about the population parameter is

a. The alternative hypothesis

b. The null Hypothesis

c. Either the null of alternate

d. none of these alternatives is correct

24. In case of normal distribution following statement is True

a. In normal distribution area below mean is equal to the mean

b. in normal distribution area below mean is equal to 1

c. in normal distribution area below mean is equal to the variance

d. in normal distribution area below mean is equal to 0.5

25. The poisson probability distribution is a

a. Discrete probability distribution

b. Uniform probability distribution

c. continuous probability distribution

d. Normal probability distribution

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26. We have 4 areas where I wish to conduct a market survey and wish to ensure all income groups
are equally represented however I wish to draw sample at random from within the various groups. I will
conduct.

a. Stratified sample

b. cluster sample

c. quota sample

d. neither of them

27. If 2 dices are thrown once, what is the probability of not getting the same number on both dice

a. 0

b. 0.83

c.

d.

28. In the Following example null and alternative hypothesis are written as H0 sample proportion
<= 0.10 Ha: sample proportion > 0.10 select the statement which holds true

a. Null and alternative hypothesis are rightly set to conduct testing

b. null and alternative hypothesis are not mutually exclusive

c. Null and alternative hypothesis is not set for population parameter

d. null and alternative hypothesis not collectively exhaustive

29. statistical Inference

30. An index that is designed to measure changes in the quantities overtime is the

a. Aggregate price index

b. quantity index

c. relative quantity index

d. index of industries

31. A coin is tossed twice. It could be head or tails each time. There are 4 combinations, are they

Mutually exclusive and collective exhaustive

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32. ______ technique helps uncover relationship between variables

a. regression Analysis

b. ANVOA

c.

d. None of these

33. The degree of freedom for F test in one way ANOVA are

a. (n-c) and (C-1)

b. (C-1) and (n-c)

c. (C-N) and (N-1)

d. (N-1) and (C-N)

34. In hypothesis testing if the null hypothesis has been rejected when the alternative hypothesis
has been true

A. Type I error has been committed

B. Type II error has been committed

C. either a Type I or a Type II error has been committed

D. the correct decision has been made

35. A simple random sample of 100 observations was taken from a large population the sample
mean and the standard deviation were determined to be 80 and 12 respectively. The standard error
of the mean is

a. 1.2

b. 0.12

c. 8

d. 0.8

36. If the coefficient of variation is 40% and the mean is 70 then the variance

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Ans: 784

37. if a hypothesis is not rejected at 5% level of Significance, it

Ans: will sometimes be rejected at the 1% level

38. The Intersection of the two mutually exclusive events

A. can be any value between 0 and 1

B. must always be equal to 1

C. must always be equal to 0

D. can be any positive value

39. Chi Square is used to analyse

a. Scores

b. Ranks

c. Frequencies

d. None

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40. If my null hypothesis is Dutch people do not differ from English people in height, what is my
alternative hypothesis

a. Dutch people differ in height from English people.

b. Dutch people are taller than English people.

c. English people are taller than Dutch people.

d. All of the statements are plausible alternative hypotheses

41. The level of significance in hypothesis is the probability of

A. Accepting a true null hypothesis

B. Accepting a false null hypothesis

C. Rejecting a true null hypothesis

D. None of these alternatives is correct

42. A bag contains 4 red and 6 blue balls, 3 balls are drawn at random find the probability that all
are red

a. 0.03

b. 0.5

c. 0.3

d.none of these

43. In a cumulative frequency distribution, the last class will have a cumulative relative frequency
equal to

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a. one

b. Zero

c. the total number of elements in the data set

d. All of these

44. If Null hypothesis is μ>50, then test will be

a. left tail

b. Two tail

c. right tail

d. none of these

45. Which of the statement is true / Which if these is true

a. Mean is always less than median

b. The sum of differences between the mean and each element of the data-set 0

c. Mean is always greater than median

d. Mode is never a measure of the central tendency

46. The level of significance

a. can be any positive value

b. can be any value
c. is (1-confidence level)
d. can be any value between -1.96 to 1.96
47. The J.O. supplies company buys calculators from a non - US supplier. the probability of a
defective calculator is 10 precent. if 100 calculators are selected at random, what is the standard
deviation of the number of defectives ?

a. 9

b. 3.17

c. 9.49

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d. 3

48. A probability distribution obtained for tossing a coin for 20 times, then variance of this
distribution is

a. 5

b. 24

c. 25

d. none of these

49. A batch has 5000 electric lamps has mean life of 1000 hours and a standard deviation of 75
hours. Assume a normal distribution.

i) How many lamps will fail before 900 hours?

a. 4560

b. 2300

c. 2000

d. 4000

ii) How many lamps will fail between 950 and 1000 hours?

a. 200

b. 250

c. 234

d. 1250

ii) What proportion of lamps will fail before 925 hours?

a. 0.16

b. 0.25

c. 0.30

d. 0.40

iv) Given the same mean life, what would the standard deviation have to be to ensure that no
more than 20% of lamps fail before 916 hours

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a. 120

b. 123

c. 100

d. none of these

50. Consider a Hypothesis H0 where Φ0 = 5 against H1 where Φ1>5 . the test is

a) Right tailed

b) Left tailed

c) Center tailed

d) Cross tailed

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