MB0024 - Statistics For Management

SECTION-A
Each question carries 1 mark each

1. Statistics means _________

a. Qualitative techniques
b. An aggregate of facts
c. A ride of numbers
d. Creating substance with facts

2. Statistics are collected for a __________ purpose

a. Future
b. Higher
c. Predetermined
d. None

3. The branch of statistics which deals with problems in biology is __________

a. Duometry
b. Biometry
c. Geometry
d. All of these

4. If investigation is based on population as a whole it is

a. Census enumeration
b. Binomial enumeration
c. Sampling Enumeration
d. Highest Enumeration

5. Classification of units on the basis of two or more characteristic is called __________

a. Bio-classification
b. Dichotomy
c. Independent classification
d. Mani-fold classification
6. Frequency distribution of more than one variable is called
a. Multivariate FD
b. Univariate FD
c. Bivariate FD
d. None
7. Mean-mode =
a. 3 (mean-median)
b. 3 (mode-mean)
c. 2 (median-mean)
d. None
8. If the probability of occurrence of an event has no effect on the occurrence of another event
a. Independent event
b. Dependent event
c. Non-exclusive event
d. All of the above
9. Classical probability also called a _________ probability
a. Old
b. Exhaustive
c. True
d. Priori
10. In Benoulli distribution each trial has _________ number of possible outcomes
a. Infinite
b. 4
c. 1
d. 2
11. In Benoulli process trials are statistically __________
a. Independent
b. Interdependent
c. Exclusive
d. None of these
12. The standard deviation of a binomial distribution is stated as:
a. npq
b. √npq
c. √nq
d. np
13. Binomial and Poisson distribution comes under _________ probability distribution
a. Static
b. Normal
c. Discrete
d. None of these
14. When mean = median = mode then that type of distribution known as:
a. Normal
b. Poisson
c. Binomial
d. Not possible
15. Approximately 95.5 percent of all the values in a normally distributed population lie within _____ standard
deviations from the mean
a. +2
b. ±3
c. -3
d. ±2
16. When elements are selected from the population at the uniform interval then it is known as:
a. Simple Random Sampling
b. Systematic Sampling
c. Cluster Sampling
d. Stratified Sampling
17. When we divide the population into relatively homogenous group then it is known as:
a. Cluster Sampling
b. Systematic sampling
c. Simple Random Sampling
d. None of these
18. We use ___________ sampling when each group has small variation within itself but there is a wide
variation between the groups
a. Stratified Sampling
b. Simple Random Sampling
c. Cluster Sampling
d. Systematic sampling
19. If probability of success is q then what is the probability of failure
a. 1-p
b. 1-q
c. p
d. None of the above
20. If sample size is greater than 30 and standard deviation of population is not known then we apply
a. z test
b. f test
c. T test
d. None of the above
21. In T distribution if sample size is 49 than degree of freedom will be
a. 50
b. 49
c. 45
d. 48
22. Reject a null hypothesis when it is true called a _________
a. Type I
b. Type II
c. Type III
d. None of these
23. Accepting a null hypothesis when it is false it is called a
a. Type I
b. Type II
c. Type III
d. None of the above
24. When sample size is less than 30 (assuming population is normal) and the population standard deviation is
known, we apply ________ test
a. z
b. T
c. F
d. Non of the above
25. When doing the hypothesis testing involving proportion, we use the _________ as the sampling distribution.
a. Poisson distribution
b. Normal distribution
c. Binomial distribution
d. None
26. The appropriate ‘”t” distribution has _________ degree of freedom.
a. N
b. N+2
c. n-1
d. n-2
27. The square of a standard normal variate is called a chi-square variate with _________ degree of freedom
a. n
b. n-1
c. 1
d. None of these
28. Standard deviation of X2 distribution is ___________
a. 2V
b. √2V
c. √σ
d. None of these
29. In statistical terms the difference between two statistical data is known as _________
a. Standard deviation
b. Variance
c. Mode
d. Mean
30. If source of variation is within samples the degree of freedom will be _________?
a. N-1
b. K-1
c. N-K
d. None of these
31. In two way analysis of variance sum of squares as Total (SST) then the degree of freedom is _______
a. N-1
b. C-1
c. R-1
d. (C-1) × (r-1)
32. If R=0.1 then correlation coefficient will be
a. 0.01
b. 1
c. 0.1
d. 0.001
33. The direction of the relation in correlation is indicated by _____________ of the correlation
a. Weight
b. Direction
c. Sign
d. None of these
34. If the given variable will vary in opposite direction then it is a
a. Positive correlation
b. Negative correlation
c. Linear correlation
d. None of these
35. Three or more variables simultaneously studied in ________ correlation
a. Non-linear
b. Multiple
c. Partial
d. Positive
36. Rank-correlation can be represented as
a. (1- 6ΣD2) / N2-N
b. (1-6ΣD2) / N (N-1)
c. (1-6ΣD2) / N3-N
d. None of the above
37. A __________ is an estimate based solely in past data of the series under investigation
a. Prediction
b. Projection
c. Forecast
d. None of these
38. In which Business Forecasting technique can we do comparative study of variations?
a. Business Barometers
b. Extrapolation
c. Time series
d. All of the above
39. Which method can be used only when adequate series of data is available?
a. Modern Econometric
b. Regression
c. Extrapolation
d. Exponential
40. Which business forecasting theory is based on present data?
a. Economic Rhythm
b. Cross cut analysis
c. Time-lag theory
d. Action & reaction
SECTION B
Each Question carries two marks each
1. Totality of units under consideration is called
a. Population
b. Sample
c. Universe
d. Statistics
A. a&d
B. a&c
C. b&c
D. All of the above
2. Stages of statistical investigation
a. Planning and preparation and getting into results
b. Application of theory mentioned
c. Developing strategies & execution
d. Planning & preparation and execution of the survey
3. Methods of collecting primary data are_________ & __________.
a. Research Institutions
b. Personal interview
c. Internet sources
d. Questionnaires
A. a, b
B. b, c
C. b, d
D. c, d
4. Mean marks scored by the students of a class is 53. The mean marks of the girls is 55 and mean marks of the
boys is 50. What is the percentage of girls in the class?
a. 60
b. 55
c. 50
d. None of the above
5. Find mode
Percentage Marks10-20 20-30 30-40 40-50 50-60 60-70 70-80
No. of students 8 19 29 36 25 13 4
a. 43.4
b. 35
c. 43.9
d. None of these
6. P (A') is defined as probability of _______________
a. 1-P (A)
b. 1+P (A)
c. P (A)
d. P (A')-1
7. Joint probability under Statistical Independence stated as
a. P (AB) = P (A) × P (B)
b. P (A or B) = P (A) + P (B) – P (AB)
c. P (B/A) = P (B)
d. P (A/B) = P (A)
8. Criteria of a good estimator are:
a. Consistency
b. Biasness
c. Efficiency
d. Sufficiency
A. a, b, c
B. a, c, d
C. b, c, d
D. All of the above
9. ___________ the difference, ________ the likelihood that hypothesized value for the mean is correct
a. Greater, greater
b. Smaller, greater
c. Smaller, smaller
d. None of these
10. The assumption we wish to test is called the ________ and is symbolized ___________
a. Alternate hypothesis, H
b. Null Hypothesis, Hb
c. Null hypothesis, H
d. Alternate Hypothesis, Ho
11. The ________ significance level we use for testing a hypothesis, the _____ the probability of rejecting a null
hypothesis when it is true.
a. Higher, higher
b. Higher, lower
c. Lower, higher
d. None of these
12. X2 test is based on __________ not on _________.
a. Statistics, Parameters
b. Frequencies, Parameters
c. Parameters, Statistics
d. Parameters, frequencies
13. The lowest value of X2 is _________ and the highest is _________
a. Zero, infinity
b. One, infinity
c. One, n-1
d. None of these
14. F – statistics is
a. Variance between the samples / Variance within the sample
b. Variance within the samples / Variance between the sample
c. (x-u) / 6
d. None of these
15. Time-lag theory conveys that changes in business are ________ and not __________
a. Long term, Short term
b. Simultaneous, Successive
c. Successive, simultaneous
d. Fixed, variable
16. Price of meat in USA in 2001 was $95 per Kg and in 2000 it was $ 78 per Kg. Find price relative?
a. 121.79
b. 82.10
c. 129
d. 90
17. 24000 tonnes wheat consumed in 2006 in UK and in 2000, 19500 tonnes of wheat was consumed. Find
quantity relative.
a. 81.25
b. 123
c. 130
d. None of these
18. Laspeyre’s Price index is represented as:
a. (Σ P1Q0 / Σ P0Q1) X 100
b. (Σ P1Q1 / Σ P0Q0) X 100
c. (Σ P0Q0 / Σ P1Q0) X 100
d. (Σ P1Q0 / Σ P0Q0) X 100
19. Which of the following is true?
a. A distribution of sample means that is less spread out, is a better estimator of the populati mean
b. As the sample size increases, the sampling distribution of the mean will approach normality,
regardless of the shape of the population distribution.
A. a is true, b is false
B. a is false, b is true
C. Both a and b are true
D. Both a and b are false
20. Simple Index number is classified on the basis of _____ and cost of living index number is classified on the basis of ____
a. Variables, Weights
b. Weights, Wholesale prices
c. Weights, Variables
d. None of these
 SECTION C
Each Question carries 4 marks each
1. What are the functions of statistics?
a. It simplifies complexity of data
b. It reduces the bulk of the data
c. It indicates trends and tendencies
d. It reduces flexibility in formulation of policies
A. a, d
B. a, c
C. a, b, c
D. All of the above
2. Match the following
SET A SET B
a. Primary data 1. Pre-test
b. Mutually exclusive 2. Second-Hand data
c. Pilot Survey 3. Only one
d. Secondary data 4. First hand data
A. a-1, b-2. c-3, d-4
B. a-4, b-3, c-1, d-2
C. a-4, b-3, c-2, d-1
D. a-1, b-3, c-2, d-1

A study of 120 patients revealed the following frequency distribution of daily expenditure on medicines by the patients.
Expenditure 10-20 20-30 30-40 40-50 40-60 60-70 70-80
No. of patients 23 40 31 12 x 3 2
3. Value of x
a 8
b. 9
c. 10
d. Can’t find
4. Mean of the expenditure
a. 31.64
b. 24.86
c. Can’t find
d. Not available
5. For the distribution of daily wage of workers the quartiles are Rs. 49.50, Rs. 56, Rs. 72.50. Find the quartile deviation.
a. 11
b. 11.50
c. 12
d. 8
6. For the above question find out Coefficient of Quartile deviation
a. 1.1
b. .1885
c. .9
d. .15
7. Find the mean and S.D. of the binomial distribution when n = 22, p = 0.15.
a. 7.5, 1.36
b. 3, 1
c. 3.3, 1.675
d. 7, 2
8. Match the following
SET A SETB
1. Σ xy / √Σ x2 Σ y2 p. p. Two tailed
2. H1: µ ≠ µH0 q. Karl Pearson’s coefficient of correlation
3. σ / √n r. Standard Error
4. H1: µ < µH0 s. One tail
a. 1-q, 2-p, 3-r, 4-s
b. 1-r, 2-p, 3-q, 4-s
c. 1-r, 2-s, 3-q, 4-p
 d. None of the above
9. Business forecasting is based on
1. Post and present conditions
2. Period
3. Scope
4. Cost
a. 1, 2, 4
b. 1, 2, 3
c. 2, 3, 4
d. All of the above
10. Arrange the steps in forecasting logically
1. Determining which phases of business activity must be measured
2. Understanding why changes in the post have occurred
3. Analysing the data
4. Selecting and compiling data to be used as measuring devices
a. 1, 2, 3, 4
b. 1, 2, 4, 3
c. 2, 1, 4, 3
d. 1, 4, 3, 2
11. Business barometers have following disadvantages
1. They are the indicators of past conditions, which may be erroneous
2. Business barometers are the indicators of the future business trends
3. It is difficult to construct indices of business activities
4. Separate indices are calculated for the individual industry
a. 1, 3, 4
b. 1, 2, 3
c. 2, 3, 4
d. None of these
12. Limitations of index numbers
1. Limited Application
2. Index numbers cannot be manipulated
3. Sampling errors
4. Difficulties in the construction of index numbers
a. 1, 3, 4
b. 2, 3, 4
c. 1, 2, 4
d. All of these
13. Using the following Venn diagram find out:

A B

11 7

42

13.1 P
a. (A) = 42/60
b. 7/42
c. 11/60
d. 7/60
13.2 P (B) =
a. 11/60
b. 7/60
c. 42/60
d. 7/42
13.3 P (A or B) =
a. 49/60
b. 53/60
c. 18/60
d. 42/60
14. State true or false
1. A correlation if standard error of estimate is zero, it shows that there is no variation about the
correlation will be perfect
2. A projection is an estimate, which relates the series in which we are interested to external factors.
3. In economic barometer business indices are conducted to study and analyze the business activities on
the basis of which future condition are predicted
4. Regression relationship may involve relationships between the variable to be forecast and several
independent variables under multiple regressions
A. T, F, T, T
B. T, T, T, T
C. F, F, F, F
D. F, T, T, F

15. State true or false

1. Exponential smoothing is a special kind of weighted average and is found extremely useful in
long term forecasting of inventories and sales
2. Statistics can deal with qualitative data
3. Frequency distribution of single variable is called bivariate frequency distribution
4. Point estimates describes a range of values within which a population parameter is likely to lie.
A. F, T, F, F
B T, T, T, T
C. T, F, T, F
D. F, F, F, F
SECTION A 28 B 13 A
1 B 29 B 14 A
2 C 30 C 15 C
3 B 31 A 16 A
4 A 32 A 17 B
5 D 33 C 18 D
6 A 34 B 19 C
7 A 35 B 20 B
8 A 36 C SECTION C
9 D 37 B 1 D
10 D 38 B 2 B
11 A 39 A 3 B
12 B 40 B 4 D
13 C 5 B
14 A 6 B
15 D SECTION B 7 C
16 B 1 B 8 A
17 D 2 D 9 B
18 A 3 C 10 C
19 B 4 A 11 A
20 A 5 C 12 A
21 D 6 A 13.1 C
22 A 7 A 13.2 B
23 B 8 B 13.3 C
24 A 9 B 14 A
25 C 10 B 15 A
26 C 11 A
27 C 12 A