Dr. G.R.

Damodaran college of Science Coimbatore 641 014

GRD School of Commerce and International Business
II B Com (AM) (2014-2017)
Semester IV
Allied : Business Statistics - 413D
Multiple Choice Questions
1. The word statistics is used as __________.
a. Singular.
b. Plural.
c. Singular and Plural.
d. None of above.
Answer: C
2. Who stated that statistics is a branch of applied mathematics which specializes in data?
a. Horace Secrist.
b. R.A Fisher.
c. Ya-Lun-Chou.
d. L.R. Connor.
Answer: B
3. Out of various definitions, given by the following workers, which definition is considered to
be more exact?
a. R .A. Fisher.
b. A.L. Bowley.
c. M.G. Kendall.
d. Cecil H. Meyers.
Answer: A
4. Method of complete enumeration is applicable for_________.
a. Knowing the production.
b. Knowing the quantum of export and import.
c. Knowing the population.
d. All of above.
Answer: D
5. Which of the following example does not constitute an infinite population?
a. Population consisting of odd numbers.
b. Population of weights of newly born babies.
c. Population of heights of 15 year old children.
d. Population of head and tails in tossing a coin successfully.
Answer: C
6. A study based on complete enumeration is known as__________.
a. Sample survey.
b. Pilot survey.
c. Census survey.
d. None of above.
Answer: C
7. Statistical results are___________.
a. Absolutely correct.
b. Not true.

c. True on average.
d. Universally true.
Answer: C
8. Statistics can be considered as ___________.
a. An art.
b. A science.
c. Neither an art not science.
d. Both art and science.
Answer: D
9. Sources of secondary data are___________.
a. Published sources.
b. Unpublished sources.
c. Neither published nor unpublished sources.
d. Both published and unpublished sources.
Answer: D
10. Whether classification is done first or tabulation?
a. Classification follows tabulation.
b. Classification precedes tabulation.
c. Both are done simultaneously.
d. No criterion.
Answer: B
11. A series showing the sets of all distinct values individually with their frequencies is known
as___________.
a. Grouped frequency distribution.
b. Simple frequency distribution.
c. Cumulative frequency distribution.
d. None of the above.
Answer: B
12. A series showing the sets of all values in classes with their corresponding frequencies is
known as___________.
a. Grouped frequency distribution.
b. Simple frequency distribution.
c. Cumulative frequency distribution.
d. None of the above.
Answer: A
13. In a grouped data, the number of classes preferred are_______________.
a. Minimum possible.
b. Adequate.
c. Maximum possible.
d. Any arbitrarily chosen number.
Answer: B
14. Class interval is measured as____________.
a. The sum of the upper and lower limit.
b. Half the sum of upper and lower limit.
c. Half the difference between upper and lower limit.
d. The difference between upper and lower limit.

Answer: D
15. A grouped frequency distribution with uncertain first or last classes is known
as____________.
a. Exclusive class distribution.
b. Inclusive class distribution.
c. Open end distribution.
d. Discrete frequency distribution.
Answer: C
16. Frequency of a variable is always____________.
a. In percentage.
b. A fraction.
c. An integer.
d. None of the above.
Answer: C
17. The data given as 5, 7, 12, 17, 79, 84, 91 will be called as____________.
a. A continuous series.
b. A discrete series.
c. An individual series.
d. Time series.
Answer: C
18. In an ordered series, the data are____________.
a. In ascending order.
b. In descending order.
c. Either (1) or (2).
d. Neither (1) or (2).
Answer: C
19. Trilinear chart is used to portray simultaneously____________.
a. Two variables.
b. Three variables.
c. Four variables.
d. Any number of variables.
Answer: B
20. Which of the following statements is not correct?
a. The bars in a histogram touch each other.
b. The bar in a column chart touches each other.
c. There are bar diagrams which are known as broken bar diagrams.
d. Multiple bar diagrams also exist.
Answer: B
21. Shoe size of most of the people in India is No. 8. Which measure of central value does it
represent?
a. Mean.
b. Second quartile.
c. Eighth deciles.
d. Mode.
Answer: D

22. In case of frequency distribution with classes of unequal widths, the heights of bars of a
histogram are proportional to____________.
a. Class frequency.
b. Class intervals.
c. Frequencies in percentage.
d. Frequency densities.
Answer: D
23. Year wise production of rice, wheat and maize for the last ten years can be displayed
by____________.
a. Simple column chart.
b. Subdivided column chart.
c. Broken bar diagram.
d. Multiple column chart.
Answer: D
24. When we have the number of court cases of different categories and information about
number of cases settled, the information can be better portrayed through____________.
a. Sliding bar diagram.
b. Histogram.
c. Paired bar diagram.
d. Column chart.
Answer: A
25. Pictograms are____________.
a. Very accurate.
b. Least accurate.
c. Mostly used.
d. Scientifically correct.
Answer: B
26. When there are a large number of values in an individual series, preference for portraying the
data goes to____________.
a. Bar diagram.
b. Column chart.
c. Line chart.
d. Scatter diagram.
Answer: C
27. Pie chart represents the components of a factor by____________.
a. Percentages.
b. Angels.
c. Sectors.
d. Circles.
Answer: C
28. The immigration and out migration of people in a number of countries and also the net
migration can be better displayed by____________.
a. Duo-directional column chart.
b. Gross-deviation column chart.
c. Net deviation column chart.
d. Range chart.

Answer: B
29. The shape of pie diagram is____________.
a. Square.
b. Conical.
c. Rectangle.
d. Circular.
Answer: D

30. Histograms are______________.

a. One dimensional diagrams.
b. Two dimensional diagrams.
c. Three dimensional diagrams.
d. None of the above.
Answer: A

31. The other name of the cumulative frequency curve is _______________.

a. Histogram.
b. Ogive.
c. Pie chart.
d. Bar diagram.
Answer: B
32. If a constant 5 is added to each observation of a set, the mean is____________.
a. Increased by 5.
b. Decreased by 5.
c. 5 times the original mean.
d. Not affected.
Answer: A
33. If each observation of a set is multiplied by 10, the mean of the new set of
observations____________.
a. Remains the same.
b. Is 10 times the original mean.
c. Is one-tenth the original mean.
d. Is increased by 10.
Answer: B
34. If each value of a series is multiplied by 10, the median of the coded values is____________.
a. Not affected.
b.10 times the original median value.
c. One-tenth of the original median value.
d. Increased by 10.
Answer: B
35. Individual data is another wise called as ____________.
a. Raw data.
b. Discrete data.
c. Continuous data.
d. Primary data.
Answer: A

36. Extreme value have no effect on____________.

a. Average.
b. Median.
c. Geometric mean.
d. Harmonic mean.
Answer: B
37. What percentage of values is greater the 3rd quartile?
a. 75%.
b. 50%.
c. 25%.
d. 0%.
Answer: C
38. The median of the variant values 11, 7, 6, 9, 12, 15, 19 is____________.
a. 9.
b. 12.
c. 15.
d. 11.
Answer: D
39. The number of partition values in case of quartiles is____________.
a. 4.
b. 3.
c. 2.
d. 1.
Answer: B
40. Which of the following is a unit less measure of dispersion?
a. Standard deviation.
b. Mean deviation.
c. Coefficient of variation.
d. Range.
Answer: C
41. Which one of the given measures of dispersion is considered best?
a. Standard deviation.
b. Range.
c. Variance.
d. Coefficient of variation.
Answer: A
42. Out of all measures of dispersion, the easiest one to calculate is____________.
a. Standard deviation.
b. Range.
c. Variance.
d. Quartile deviation.
Answer: B
43. Mean deviation is Minimum when deviations are taken from____________.
a. Mean.
b. Median.
c. Mode.

d. Zero.
Answer: B
44. Which measure of dispersion ensures highest degree of reliability?
a. Range.
b. Mean deviation.
c. Quartile deviation.
d. Standard deviation.
Answer: D
45.Which measure of dispersion is least affected by extreme values?
a. Range.
b. Mean deviation.
c. Standard deviation.
d. Quartile deviation.
Answer: D
46. The average of the sum of squares of the deviations about mean is called____________.
a. Variance.
b. Absolute deviation.
c. Standard deviation.
d. Mean deviation.
Answer: A
47. For a negatively skewed distribution, the correct inequality is____________.
a. Mode<median.
b. Mean<median.
c. Mean<mode.
d. None of the above.
Answer: C
48.Mean is a measure of __________.
a. Location.
b. Dispersion.
c. Correlation.
d. Regression.
Answer: A

49. Which of the following is a measure of central value?

a. Median.
b. Standard deviation.
c. Mean deviation.
d. Quartile deviation.
Answer: A

50. Geometric mean is better than other means ___________.

a. When the data are positive as well as negative.
b. When the data are in ratios or percentages.
c. When the data are binary.
d. When the data are on interval scale.
Answer: B

51. The correct relationship between A.M, G.M and H.M is_______________.
a. A.M=G.M=H.M.
b. G.M A.MH.M.
c. H.MG.MA.M.
d. A.MG.MH.M.
Answer: D

52. Which mean is most affected by extreme values?

a. Geometric mean.
b. Harmonic mean.
c. Arithmetic mean.
d. Trimmed mean.
Answer: C

53. Graphically partition be determined with the help of________________.

a. Frequency polygon.
b. Bar diagram.
c. Line diagram.
d. Ogive curve.
Answer: D

54. Formula for coefficient of variation is_______________.

S .D
a. C.V
X 100 .
Mean
Mean
b. C.V
X 100 .
S .D
S .D
c. C.V
.
Mean
d. C.V S .DXMean .
Answer: A

55. The measure of dispersion which ignores signs of the deviations from central value
is_____________.
a. Range.
b. Quartile deviation.
c. Standard deviation.
d. Mean deviation.
Answer: D

56. In a case of positive skewed distribution the relation between mean, median and mode that
hold is_________.
a. Median > mean > mode.
b. Mean > median > mode.
c. Mean = median = mode.
d. Mean < median < mode.
Answer: B

57. It is one of the measures of central tendency________________.

a. Mean deviation.
b. Standard deviation.
c. Median.
d. Correlation.
Answer: C
58.The value in a series occurs most frequently is called_______________.

a. Mean.
b. Median.
c. Mode.
d. Harmonic mean.
Answer: C
59. Which one of the following is not a measure of dispersion ?

a. Range.
b. Standard deviation.
c. Mean deviation.
d. Geometric mean.
Answer: D

60. Range of 8, 12, 5, 15 is ____________.

a. 2.
b. 5.
c. 10.
d. 15.
Answer: C
61. Index numbers are also known as ____________.
a. Economic barometers.
b. Signs and guide posts.
c. Both (a) and (b).
d. Neither (a) nor (b).
Answer: C
62. Index number is a____________.
a. Measure of relative changes.
b. A special type of an average.
c. A percentage relative.
d. All the above.
Answer: D
63. Most commonly used index number is____________.
a. Diffusion index number.
b. Price index number.
c. Value index number.
d. None of the above.
Answer: D

64. Base period for an index number should be ____________.

a. A year only.
b. A normal period.
c. A period of distant past.
d. None of the above.
Answer: B
65. Laspeyres index numbers possess ____________.
a. Downward bias.
b. No bias.
c. Upward bias.
d. None of the above.
Answer: C
66. The difference between the index numbers based on n selected items and total number of
items is called ____________.
a. Formula error.
b. Sampling error.
c. Homogeneity error.
d. None of the above.
Answer: B
67. Sampling error in respect of index numbers can be reduced by____________.
a. Taking a random sample of items.
b. Including large number of items.
c. Both (a) and (b).
d. Neither (a) nor (b).
Answer: C
68. The range of homogeneity error in reference to index numbers is____________.
a. 0 to 1.
b. 0 to .
c. -1 to 1.
d. - to .
Answer: A
69. Combining of two index number series having different base periods into one series with
common base period is known as ____________.
a. Splicing.
b. Base shifting.
c. Both (1) and (2).
d. Neither (1) nor (2).
Answer: A
70. An appropriate method for working out consumer price index is____________.
a. Weighted aggregate expenditure method.
b. Family budget method.
c. Price relatives method.
d. None of the above.
Answer: B
71. Index of industrial production measures the changes in ____________.
a. The quantum production.

b. The value of products.

c. The demand of industrial goods.
d. None of the above.
Answer: A
72. Consumers price index number is constructed for___________.
a. A well defined section of people.
b. All people.
c. Factory workers only.
d. In a group of peoples.
Answer: A
73. Laspeyres index formula uses the weights of the______________.
a. Base year.
b. Current year.
c. Average of the weights of a number of years.
d. To any arbitary chosen year.
Answer: A

74. The weights used in Pasches formula belong to__________.

a. The base period.
b. The given period.
c. To any arbitary chosen period.
d. Average of the weights of a number of periods.
Answer: B

75. Fishers ideal formula does not satisfy ___________.

a. Time reversal test.
b. Circular test.
c. Factor reversal test.
d. Unit test.
Answer: B
76. Factor reversal test permits the interchange of ____________.

a. Base periods.
b. Price and quantity.
c. Weights.
d. None of the above.
Answer: C
77. The best average to calculate index numbers is______________.
a. A.M.
b. G.M.
c. H.M.
d. None.
Answer: B
78. If a frequency distribution is positively skewed, the mean of the distribution is___________.
a. Greater than the mode.
b. Less than the mode.

c. Equal to mode.
d. Less than the mean.
Answer: A
79. When the coefficient of skewness is zero, the frequency curve is ______________.
a. U shaped.
b. J shaped.
c. Bell shaped.
d. None of the above.
Answer: C
80. In paaches Index Number priority is given to the price of___________.
a. Current year.
b. Base year.
c. Future year.
d. None of the above.
Answer: D
81. If X and Y are two variants, there can be at most____________.
a. One regression line.
b. Two regression lines.
c. Three regression lines.
d. An infinite number of regression lines.
Answer: B
82. Scatter diagram of the variant values (X,Y) give the idea about____________.
a. Functional relationship.
b. Regression model.
c. Distribution of errors.
d. None of the above.
Answer: C
83. If yx and xy are two regression coefficients, they have____________.
a. A same sign.
b. Opposite sign.
c. Either same or opposite signs.
d. Nothing can be said.
Answer: A
84. The property if X and Y are independent, then yx = xy = 0 is called____________.
a. Fundamental property.
b. Mean property.
c. Independence property.
d. Magnitude property.
Answer: C
85. The coordinates (X, Y) satisfy the lines of regression of____________.
a. Y on X.
b. X on Y.
c. Both the regression lines.
d. None of the two regression lines.
Answer: C

86. If =0, the angle between the two lines of regression is____________.
a. Zero degree.
b. Ninety degree.
c. Sixty degree.
d. Thirty degree.
Answer: B
87. The idea of product movement correlation was given by____________.
a. R.A. Fisher.
b. Sir Frances Galeton.
c. Karl Pearson.
d. Spearman.
Answer: C
88. If is the simple correlation, the quantity (1-) is called ____________.
a. Coefficient of determination.
b. Coefficient of non determination.
c. Coefficient of alienation.
d. None of the above.
Answer: B
89. The value of correlation ratio varies from ____________.
a. -1 to 1.
b. -1 to 0.
c. 0 to 1.
d. 0 to .
Answer: A
90. If each group consists of one observation only, the value of correlation ratio
is____________.
a. 0.
b. 1.
c. Between 0 and 1.
d. Between -1 and 1.
Answer: B
91. The average of two regression coefficients is always greater than or equal to the correlation
coefficient is called_________________.
a. Fundamental property.
b. Signature property.
c. Magnitude property.
d. Mean property.
Answer: D

92. If r is called simple correlation coefficient, the quantity r2 is known as__________.

a. Coefficient of determination.
b. Coefficient of non determination.
c. Coefficient of alienation.
d. Coefficient of variation.
Answer: A

93. The range of simple correlation coefficient is____________.

a. 0 to .
b. - to .
c. 0 to 1.
d. -1 to 1.
Answer: D

94. The nature of correlation between two variables is known from _______________.
a. Bar diagram.
b. Pie diagram.
c. Pictogram.
d. Scatter diagram.
Answer: D
95. The co-efficient of correlation is not affected by ______________.
a. Change of origin.
b. Change of scale.
c. Both origin and scale.
d. None.
Answer: C
96. If one of the regression coefficient is negative, the other _______________.
a. Must be positive.
b. Must be negative.
c. May be positive or negative.
d. Non-negative.
Answer: B
97. When r = 1 the two regression lines are ______________.
a. Perpendicular to each other.
b. Parallel to each other.
c. Coincide.
d. None.
Answer: C
98. The regression lines 5x+2y=16 , and 9x+10y=48 intersect at ____________.
a. 0,8.
b. 2,3.
c. 3,2.
d. 8,0.
Answer: B
99. Rank correlation method was developed by ______________.
a. Karl Pearson.
b. R.A. Fisher.
c. Spearman.
d. Croxten and cowden.
Answer: C
100. ________ is the geometric mean of two regression coefficient
a. Mean.
b. Correlation.
c. Rank correlation.

d. Mode.
Answer: B
101. Regression coefficients are affected by change of ________.
a. Origin.
b. Scale.
c. Both origin and scale.
d. Neither origin nor scale.
Answer: B
102. Correlation analysis deals with___________.
a. Two attributes.
b. Two variables alone.
c. Variables.
d. Averages.
Answer: C
103. Correlation between the number of children born and the number of train accident
is___________.
a. Positive correction.
b. Spurious correlation.
c. Negative correlation.
d. Rank correlation.
Answer: B
104. Graphical method under dispersion is ____________.
a. Frequency curve.
b. Normal curve.
c. Lorenz curve.
d. Ogive.
Answer: C
105. The point of intersection of the two Ogives is ________________.
a. Mean.
b. Median.
c. Mode.
d. G.M.
Answer: B
106. The mean of 1,2,3,4,5 is_________________.
a. 1.
b. 2.
c. 3.
d. 4.
Answer: C
107. A measure of ______ gives a single representative value for a set of usually unequal values.
a. Dispersion.
b. Central tendency.
c. Variation.
d. Relation.
Answer: B
108. In a symmetrical distribution mean median and mode are______________.

a. Equal.
b. Unequal.
c. Zero.
d. One.
Answer: A
109. The mode of 1,5,6,8,5,9,5,8,5

a. 1
b. 8
c. 5
d. 6
Answer: C
110. Median usually lies between ___________.
a. Mean and mode.
b. Mean and G.M.
c. Mean and H.M.
d. G.M and H.M.
Answer: A
111. Statistics considers ____________.
a. A single item.
b. A set of items.
c. Either a single item or a set of items.
d. Neither a single item nor a set of items.
Answer: B
112. Number of methods of collection of primary data is _____________.
a. 2.
b. 3.
c. 4.
d. 5.
Answer: D
113. In a bar diagram ____________.
a. Only height is considered.
b. Only width is considered.
c. Both height and width are considered.
d. Height, width and thickness are considered.
Answer: A
114. A time series consist of____________.
a. Two components.
b. Three components.
c. Four components.
d. Five components.
Answer: C
115. The general decline in sales of cotton clothes is attached to the component of the time series
is ____________.
a. Secular trend.
b. Cyclical variation.
c. Seasonal variation.
d. All of the above.

Answer: A
116. Secular trend is indicative of long term variation towards____________.
a. Increase only.
b. Decrease only.
c. Either increase or decrease.
d. None of the above.
Answer: C
117. Method of least squares to fit in the trend is applicable only if the trend is____________.
a. Linear.
b. Parabolic.
c. Both (a) and (b).
d. Neither (a) nor (b).
Answer: C
118. Cyclic variations in a time series are caused by____________.
a. Lockouts in a factory.
b. War in a country.
c. Floods in the states.
d. None of the above.
Answer: D
119. Trend in a time series means____________.
a. Long term regular movement.
b. Short term regular movement.
c. Both (a) and (b).
d. Neither (a) nor (b).
Answer: A
120. The terms prosperity, recession, depression and recovery are in particular attached
to____________.
a. Secular trend.
b. Seasonal fluctuations.
c. Cyclic movements.
d. Irregular variations.
Answer: C
121. An additive model of time series with the components T, S, C and I is____________.
a. Y=T+S+C*I.
b. Y=T+S*C*I.
c. Y=T+S+C+I.
d. Y=T+S*C+I.
Answer: C
122. Moving average method of ascertaining trend is not suitable for____________.
a. Finding trend values.
b. Projections.
c. Both (1) and (2).
d. Neither (1) nor (2).
Answer: B

123. Moving average method suffers from____________.

a. Loss of information.
b. The element of subjectivity.
c. The decision about the number of years in groups.
d. All of the above.
Answer: D
124. Link relatives in a time series remove the influence of____________.
a. The trend.
b. Cyclic variation.
c. Irregular variations.
d. All the above.
Answer: A
125. First difference method for isolating cycles is applicable if observations pertain
to____________.
a. Early data.
b. Quarterly data.
c. Monthly data.
d. Any data.
Answer: A
126. In percentage ratio method of measuring cyclic variations one finds____________.
a. Actual changes.
b. Relative changes.
c. Percent ratio changes.
d. All the above.
Answer: C
127. Reference cycle analysis method of measuring cycles is applicable to____________.
a. Current time series.
b. Past time series.
c. Both (1) and (2).
d. Neither (1) nor (2).
Answer: B
128. To which component of the time series, the term recession is attached?
a. Trend.
b. Seasonal.
c. Cycles.
d. Random variation.
Answer: C
129. If the slope of the trend line is positive, it shows____________.
a. Rising trend.
b. Declining trend.
c. Stagnation.
d. All of the above.
Answer: A
130. The sales of a departmental store on Dushera and Diwali are associated
With the component of a time series___________________.
a. Secular trend.

b. Seasonal variation.
c. Irregular variation.
d. Cyclical variation.
Answer: B

131. Least square method of fitting a trend is________________.

a. Most exact.
b. Least exact.
c. Full of subjectivity.
d. Mathematically unsound.
Answer: A

132. If the trend line with 1975 as origin is Y = 20.6 + 1.68X, the trend line with
1971 as origin is___________.
a. Y = 20.6 + 6.72X.
b. Y = 13.88 + 1.68X.
c. Y = 34.61 + 1.68X.
d. Y = 34.61 1.68X.
Answer: B
133. Seasonal variation occur at an interval of _______________.
a. 7 years.
b. 5 years.
c. 1 year.
d. 2 years.
Answer: C
134. Cyclic fluctuations are caused by______________.
a. Flood.
b. War.
c. Strike.
d. None.
Answer: D
135. The trend can be found by the method of least squares ____________.
a. If the nature of trend is known.
b. If the trend is not linear.
c. If the trend is linear.
d. If the nature of the trend is unknown.
Answer: C
136.The cause of cyclones and floods in time series is associated with the ____________.
a. Irregular variation.
b. Cyclical variation.
c. Seasonal variation.
d. None of the above.
Answer: A
137. Range for the given values 10, 10, 10, 10, 10, 10, is
a. 0.
b. 10.
c. 20.

d. -10.
Answer: A
138.The line obtained by the method of least squares is known as the line of _______.
a. Best fit.
b. Correlation.
c. Regression.
d. None.
Answer: A
139. The range of 5,12,15,7,8 ____________.
a. 5
b. 10
c. 15
d. 20
Answer: B
140. Climate and weather conditions cause _____________.
a. Cyclic variation.
b. Seasonal variation.
c. Secular trend.
d. Non-secular trend.
Answer: B
141. Classifying the data on time basis is known as_____________.
a. Geographical.
b. Chronological.
c. Serial.
d. Calendar.
Answer: B
142. Graphs of time series are called________.
a. Hitorigrams.
b. Hitograms.
c. Pie charts.
d. Bar diagrams.
Answer: A
143. _________is not a component of time series.
a. Secular trend.
b. Seasonal variation.
c. Coefficient of variation.
d. Cyclic variation.
Answer: C
144. The sales of crackers in time series is associated with the _________.
a. Irregular variation.
b. Cyclical variation.
c. Seasonal variation.
d. None of the above.
Answer: C

145.The data collected by questionnaires are_____________.

a. Primary data.
b. Secondary data.
c. Published data.
d. Grouped data.
Answer: A
146. Which one of the following is not a sources of secondary data?
a. Personal contact.
b. Records.
c. Journal.
d. News paper.
Answer: A
147. Classification is the process of arranging data in________________.
a. Columns.
b. Rows.
c. Columns and rows.
d. Ascending order.
Answer: C
148. When a population is infinite, the appropriate method is _____________.

a. Census method.
b. Sample method.
c. Both the census and sample method.
d. Neither census nor sample method.
Answer: B
149.The maximum sales of the woollen clothes in time series is attached to the ________.
a. Seasonal variation.
b. Cyclic variation.
c. Irregular variation.
d. None of the above.
Answer: A
150. Diagrams and graphs are tools of ________________.

a. Collection of data.
b. Analysis.
c. Presentation.
d. Classification.
Answer: C

Faculty Name : Ms.Sumithra.S