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MODEL QUESTION PAPER FOR VALUATION EXAMINATION
Asset Class: LAND and BUILDING
1. The price elasticity of demand measures the change in the quantity demanded of a
service in relation to a change in its price when nothing but the ___________ changes.
a) price
b) cost
c) quality
d) value
Ans.(a)
2. Other things remaining same, the law of demand states __________.
a) the higher the price, the lower the quantity demanded
b) the higher the price, the higher the quantity demanded
c) the higher the price, the lower the quantity supplied
d) the higher the price, the higher the quantity demanded
Ans.(a)
3. A market which has only one seller selling a homogeneous product to many buyers, is
known as _______.
a) Monopoly
b) Oligopolistic
c) Perfect Competition
d) Monopolist Competition
Ans.(a)
4. Which of the following statements is not true about factors of production?
a) Land means natural resources.
b) Labour means human resources.
c) Capital means financial resources.
d) Entrepreneurship means pursuit of opportunity beyond resources controlled.
Ans.(c)
5. Which of the following is not true about Ricardian theory of rent?
a) Rent increases with increase in population.
b) Rent is surplus above cost.
c) Rent is unearned income.
d) Rent arises only in the short run.
Ans.(d)
6. Which of the following is not correct about functions of money?
a) It is a medium of exchange.
b) It is a measure of economic power.
c) It is a standard of deferred payments.
d) It is a store of value.
Ans.(b)
7. Which of the following is not a cause of demand-pull inflation?
a) Increase in wages and salaries
b) Increase in Government spending
c) Increase in interest rates
d) Increase in exports
Ans.(c)
8. If a person has an income of Rs.30000 and his consumption is Rs.10000, then his
propensity to save is____.
a) 1.33
b) 0.33
c) 0.67
d) 1.50
Ans.(c)
9. Which of the following is an example of secondary sector of an economy?
a) Mining
b) Forestry
c) Food Processing
d) Pisciculture
Ans.(c)
10. How are Gross Domestic Product (GDP) and Gross National Product (GNP) related?
a) GNP = GDP – NR + NP
b) GNP = GDP + NR - NP
c) GNP = GDP + EX - IM
d) GNP = GDP -EX + IM
Ans.(b)
11. In double entry system, accounts are primarily classified in to ___________.
a) Receiver account & Giver account
b) Income account & Expenses account
c) Real account & Nominal account
d) Personal Account & Impersonal account
Ans.(d)
12. Discount received is recorded on which side of a cash book?
a) Receipts
b) Payments
c) Income
d) Expense
Ans.(b)
13. For a real estate construction company, which of the following are not part of Profit
and Loss Statement?
a) Revenue from apartment sales
b) Interest paid to lenders
c) Cash deposited in bank
d) Depreciation expense
Ans.(c)
14. Proposed dividend is shown in the Balance Sheet of a company under the head _____.
a) provisions
b) reserves and surplus
c) current liabilities
d) other liabilities
Ans.(a)
15. Difference between variable cost per unit and selling price can be classified as______
margin per unit.
a) contribution
b) gross
c) net
d) profit
Ans.(a)
16. Right to property is a ___ right.
a) fundamental
b) statutory
c) constitutional
d) human
Ans.(c)
17. Which of the following is not a requirement of a contract?
a) Competent Parties
b) Free Consent
c) Legal Object
d) Adequate Consideration
Ans.(d)
18. Performance of contract is one of the methods to__________.
a) create a new contract
b) set-aside a contract
c) make a contract void
d) discharge a contract
Ans.(d)
19. In case of a ___________, the duty is one imposed by the law and is owed to the
community at large.
a) contingent contract
b) cecile agreement
c) government tender
d) tort
Ans.(d)
20. As per section 36 of the Insolvency and Bankruptcy Code, 2016, the liquidator shall
hold the liquidation estate ___________.
a) as an agent of debtor
b) as an agent of committee of creditors
c) as a fiduciary for the benefit of all the creditors
d) as a fiduciary for the benefit of all the stakeholders
Ans.(c)
21. Section 231 (2) of the Companies Act, 2013 empowers a tribunal to __________, if it
is satisfied that the compromise sanctioned under section 230 cannot be implemented
satisfactorily, and the company is unable to pay its debts as per the scheme.
a) wind up the company
b) restructure the debt
c) call for rearrangement
d) replace the management
Ans.(a)
22. In a right skewed frequency distribution, __________.
a) mean is typically greater than the median
b) mean is typically less than the median
c) mean is typically less than the mode
d) mean is equal to mode which is equal to median
Ans.(a)
23. When numbers are associated with weights, then obtained mean is said to be _______.
a) weighted arithmetic mean
b) harmonic mean
c) standard mean
d) geometric mean
Ans.(a)
24. If two events A and B are mutually exclusive, the probability of occurrence of either A
or B is__________.
a) difference between individual probabilities of A and B
b) sum of the individual probabilities of A and B
c) always 1
d) one minus sum of the probabilities of A and B
Ans.(b)
25. Gradual shifting of a time series over a long period of time is called as __________.
a) periodicity
b) cycle
c) regression
d) trend
Ans.(d)
26. Technology that permits safe, efficient, and inexpensive clean-up of contaminants in
property tends to minimise _________ in asset value.
a) decrease
b) increase
c) fluctuations
d) variations
Ans.(a)
27. Which planning provision is required around the battery limit of industry and for
industry having odour problem?
a) No development zone
b) Green belt
c) Special permission zone
d) Industrial regulation zone
Ans.(b)
28. Which of the following is not covered under the Indian Forest Act, 1927?
a) Reserved forest
b) Village forest
c) Protected forest
d) Prohibited forest
Ans.(d)
29. Which of the following legislations does not provide for pollution control?
a) The Water (Prevention and Control of Pollution) Act, 1974
b) The Air (Prevention and Control of Pollution) Act, 1974
c) The Environment (Protection) Act, 1986
d) The Technology (Transfer of Abuse) Act, 2007
Ans.(d)
30. A valuer shall act with objectivity in his professional dealings by ensuring that his
decisions are made ________.
a) without the presence of any bias
b) with coercion
c) with confidence
d) with undue influence of any party
Ans.(a)
31. A valuer, while respecting the confidentiality of information acquired during the course
of performing professional services, shall maintain proper working papers for a period of
______.
a) 3 years
b) 2 years or such shorter period as required in its contract for a specific valuation
c) 3 years or such longer period as required in its contract for a specific valuation
d) 2 years
Ans.(c)
32. Integrity of registered valuer is seriously affected by ____.
a) being honest
b) being straightforward
c) misrepresenting any facts or situations
d) ignoring public interest
Ans.(c)
33. Which of the following is not a duty of the valuer?
a) To verify ownership in document and occupancy on actual site
b) To identify plot number in document as well as on-site
c) To be responsible for correctness of survey findings by his assistant
d) To investigate title of the property to be valued
Ans.(d)
34. Under the Right to Fair Compensation and Transparency in the Land Acquisition and
Rehabilitation Act, 2013, market value is decided by the collector as per________.
a) circle rate/guidelines rates of last 5 years
b) the average of the sale price for similar type of land being acquired, ascertained from
the highest fifty per cent of the sale deeds registered during the preceding three years
in the nearest village or nearest vicinity of the land being acquired
c) purchase price of adjoining land
d) purchase price paid by the owner at the time of purchase of land which is to be acquired
Ans.(b)
35. Which of the following would have effect on development potential and values of
properties?
a) Floor space index
b) Ownership pattern
c) size and height of rooms
d) provision of utility services in a building
Ans.(a)
36. The approach to valuation of rented properties depends on_________.
a) nature and behaviour of landlords
b) category of tenants - tenant protected or not protected under the applicable rent act
c) rent paying capacity of the tenant
d) cordial and homely relationship between landlord and tenant
Ans.(b)
37. As per the Real Estate (Regulation and Development) Act, 2016, what percentage of
collections needs to be deposited by developers in Escrow accounts towards the cost of
construction including that of land?
a) 50%
b) 60%
c) 70%
d) 80%
Ans.(c)
38. As per the Transfer of Property Act, 1882, immovable property includes ______.
a) furniture
b) growing crops
c) grass
d) things permanently fastened to anything attached to the earth
Ans.(d)
39. Where, on a transfer of property, an interest therein is created in favour of a person to
take effect only on the happening of a specified event, such interest is called _________.
a) simple interest
b) diminishing interest
c) vested interest
d) contingent interest
Ans.(d)
40. A mortgage is a transfer of an interest in a specific immovable property for the purpose
of securing __________.
a) the payment of money advanced by way of loan
b) fully paid up debts
c) transfer of ownership of property
d) transfer of rights to sublease
Ans.(a)
41. A gives Rs. 5,00,000 to B on condition that he shall marry A’s daughter C. At the date
of transfer, C was dead. The transfer is void ______.
a) it is forbidden by the law
b) court regards it as immoral or opposed to public policy
c) it is impossible to fulfil the condition
d) it is immoral transfer
Ans.(c)
42. The Hindu Succession Act, 1956 does not apply to ______.
a) a follower of the Arya Samaj
b) a Sikh by religion
c) a child both of whose parents are Jains by religion
d) a person who is a convert to Christian
Ans.(d)
43. Which of the following items cannot be transferred under Inheritance/Succession laws
in India?
a) Personal movable property
b) Jewellery
c) Property not owned by self
d) Personal belongings
Ans.(c)
44. Value is an estimate of what ______ ought to be.
a) value
b) price
c) cost
d) worth
Ans.(b)
45. The value at the end of utility period of the asset without being dismantled is called
____ value.
a) salvage
b) realisable
c) scrap
d) junk
Ans.(a)
46. Real estate has some _______and, therefore, has a value.
a) profit
b) immobility
c) characteristics of non-marketable and non-investment property
d) use
Ans.(d)
47. Which of the following factor is not physical yet affects the valuation of the subject
property?
a) Damages to the building
b) Gross Domestic Product
c) Property location
d) Neighbourhood properties
Ans.(b)
48. Property is a ___ concept.
a) physical
b) legal
c) technical
d) social
Ans.(b)
49. The price that would tend to prevail in a free, open and competitive market on the basis
of equilibrium set by the forces of demand and supply is called ______.
a) value in exchange
b) value in use
c) optimum value
d) realisable value
Ans.(a)
50. What is the subject matter of valuation?
a) Interest in a property
b) Land and Building
c) Standard Rent
d) Profit Rent
Ans.(a)
51. A fund formed by setting aside an annual recurring amount for a given period of time
to recoup capital invested in a landed property is called ____.
a) sinking fund
b) annual amount of Rs. 1
c) annual value
d) investment value
Ans.(a)
52. A project requires an investment of Rs.10 lakh and has an NPV of Rs.16 lakh. What is
its profitability index?
a) 1.0
b) 1.6
c) 0.6
d) 3.2
Ans.(b)
53. Which one of the following best defines Annual sinking fund?
a) Annual sum required to be invested to amount to Rs. 1/- in specified years
b) Monthly sum required to be invested to amount to Rs. 10/- in specified years
c) Annual sum required to be invested to amount to Rs. 10/- in specified years
d) Annual sum required to be invested to amount to Rs. 100/- in specified years
Ans.(a)
54. A proposed development of Metrorail station in the city would _____.
a) decrease in supply of real estate in surrounding area
b) increase demand of real estate in surrounding area
c) decrease cost of construction of buildings in surrounding area
d) decrease demand of the real estate in surrounding area
Ans.(b)
55. Which one of the following is not a characteristic of real estate market?
a) No Free flow of information
b) It is imperfect market
c) It is perfect investment market
d) Heterogeneity
Ans.(c)
56. Which factor would negatively influence demand in real estate?
a) Low liquidity
b) Potential of capital appreciation
c) Regular income
d) Redevelopment potential of the property
Ans.(a)
57. Under rent capitalization method, value of the property increases with_______.
a) higher property tax
b) higher capitalization rate
c) lower capitalization rate
d) longer duration
Ans.(c)
58. In case the unexpired period of lease is too long then reversionary value would be___.
a) negative net present value
b) zero
c) negligible
d) less than zero
Ans.(c)
59. Which among the following is not a factor affecting market rent?
a) City
b) Location
c) Type of building
d) Turnover of the lessee
Ans.(d)
60. In relation to a lease agreement, the actual rent specified in the lease is called _____.
a) contractual rent
b) effective rent
c) negotiated rent
d) standard rent
Ans.(a)
61. Which of the following is not correct about ‘surrender of lease’?
a) Premature termination by lessee
b) Unilaterally terminated by a lessee
c) Terminated with the consent of the lessor
d) It can happen post expiry of the lease
Ans.(d)
62. Acceptance of project depends on __________.
a) positive net present value
b) negative net present value
c) zero net present value
d) zero internal rate of return
Ans.(a)
63. For which of the following, profit method of valuation is most appropriate?
a) Vacant Land
b) Petrol pump
c) Residential Home
d) School
Ans.(b)
64. The market demand curve shows ____________.
a) effect on market supply of a change in the demand for a good or service
b) marginal cost of producing and selling different quantities of a good
c) quantity of a good that consumers would like to purchase at different prices
d) effect of advertising expenditures on the market price of a good
Ans.(c)
65. Market approach basically operates on the_______.
a) principle of increasing and decreasing returns
b) principle of substitution
c) principle of conformity
d) principle of contribution
Ans.(b)
66. Which of the following is not a source from which sale instances of immovable property
in a particular locality can be collected?
a) Sales record at the registrar’s office
b) Advertisements in newspapers
c) Auction sale information from different authorities
d) Share market
Ans.(d)
67. The residual income from real estate available to land is representative of the principle
of_______.
a) surplus productivity
b) balance
c) increasing and decreasing returns
d) consistent use
Ans.(a)
68. Which of the valuation method is generally used for carrying out valuation of large
plots when sale instances of large size plots in the locality are not available?
a) Sales comparison method
b) Hypothetical plotting scheme
c) Hypothetical building scheme
d) Adopting rental instances
Ans.(b)
69. Quick estimation of costs of construction can be carried out by_________.
a) sum of digit method
b) detail estimation
c) plinth area rate
d) discounted cash flow method
Ans.(c)
70. Actual survival life of the building before it collapses is called the _____.
a) useful life
b) economic life
c) physical life
d) residual life
Ans.(c)
71. Asset which has become outdated mainly due to the planning and designing being
unsuitable for present day requirement of the user is an example of ___________.
a) technological obsolescence
b) economic obsolescence
c) functional obsolescence
d) both technological obsolescence as well as economic obsolescence
Ans.(c)
72. Depreciated Replacement Cost is market value of special purpose industrial plant
building subject to potential______.
a) profitability
b) cost
c) price
d) value
Ans.(a)
73. Which one of the following valuation methodology is most appropriate for valuing a
non-income generating residential bungalow?
a) Discounted Cash Flow Method
b) Sales Comparable & Depreciated Replacement Cost Method
c) Profit Method
d) Direct Capitalization Method
Ans.(b)
74. While carrying out valuation of property for bank finance, which of the following is not
to be taken into consideration?
a) Age of the building
b) Rent fetching capacity of the property
c) Economic obsolescence
d) Amount of loan
Ans.(d)
75. The income chargeable under head ‘capital gains’ is computed by deducting the
___________ from the full value of the consideration received as a result of transfer of the
capital asset __________.
a) expenditure incurred wholly and exclusively in connection with such transfer
b) expenditure incurred wholly and excessively after such transfer
c) indexed cost of repairing to be carried out
d) index cost of any improvements carried out after such transfer
Ans.(a)
76. Under the provision of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002, enforcement of security interest means
__________.
a) sale of assets of the borrowing party by the bank
b) sale of charged assets by the secured creditor through the Debt Recovery Tribunal
c) sale of charged assets by the secured creditor without court intervention
d) getting bank's charge registered with central registry
Ans.(c)
77. If owner of plot A with house has a right of way over his neighbour’s plot B for
beneficial enjoyment of house, owner A is called ____.
a) co-owner
b) dominant owner
c) joint owner
d) servient owner
Ans.(b)
78. Which of the following transaction is an arm’s length transaction?
a) Transaction between parties at auction sale.
b) Transaction between parent and subsidiary company
c) Transaction between two old friends
d) Transaction between two brothers
Ans.(a)
79. Which return would you adopt as base while determining appropriate rate of the net
profit, unless it is otherwise found unsuitable?
a) The return from investments in stock and shares
b) The return from gilt-edge security
c) Interest paid in the saving account
d) The return from investment in gold
Ans.(b)
80. Which of the following judgements recognises the concept ‘Valuation is an art, not an
exact science. Mathematical certainly is not demanded, nor indeed is it possible.’.
a) K.P. Varghese vs ITO (1981) 131 ITR 597 (SC)
b) Gold Coast Trust Ltd. vs Humphray (1949) 17 ITR 19
c) Rustam C Cooper vs Union of India AIR 1970 SC 564
d) Hays Will Trust vs Hays and Others (1971) 1 WLR 758
Ans.(b)
81. Which of the following is expressed by a valuer while giving expert evidence in the
examination-in-chief in the court?
a) Opinions regarding values with reasoning
b) Evidence of facts
c) Answers without reasoning
d) Answers only in ‘yes’ or ‘no’
Ans.(a)
82. In context of the property insurance, which of the following is a human peril?
a) War
b) Age of the Property
c) Cyclone Facade
d) Upliftment
Ans.(a)
83. An insurance policy generally allows one to value the respective building and/or
contents by-____
a) Internal Rate of Return
b) Replacement Cost
c) Floor space index
d) Ground Coverage
Ans.(b)
84. A fire broke out in Hemant's factory and damaged half of the stock which was to be
shipped to a nearby cloth dealer. His fire insurance policy had the average clause in it. Actual
value of the stock: Rs.3,00,000, Sum insured for the stock: Rs.2,00,000, Loss incurred:
Rs.1,50,000 (As half the stock was destroyed). The claim amount will be Rs. ______.
a) Rs.1,00,000
b) Rs.3,00,000
c) Rs.2,00,000
d) Rs.1,50,000
Ans.(a)
85. When insurable amount is lower than ‘value at risk’, it is called ______.
a) over insured
b) fair insurable amount
c) fair premium for insurance
d) under insured
Ans.(d)
86. Upon paying the amount of loss to the insured, the insurer steps into the place of the
insured, taking over all his rights. It is called exercise of __________.
a) right of reinstatement
b) right of contribution
c) right of subrogation
d) right to salvage
Ans.(c)
87. Where the opinion of an expert is required for litigation in valuation, the report ____.
a) must rely on requirements imposed by the local authority where the property is located
b) rely on requirements imposed by the local authority where the Client is registered
c) rely on requirements imposed by the local authority of the registered office of the
lawyer
d) rely on requirements imposed by the local authority of the registered office of the reliant
party
Ans.(a)
88. While valuing assets where the valuer is not conversant with its features, __________.
a) it is advisable to engage the services of an expert and the signed report of the expert be
made a part of valuation report
b) it is advisable to engage the services of an expert and his report need not be made a part
of valuation report
c) he can privately seek the services of such expert and need not disclose in the report
d) it is enough to mention in report about details of expert engaged.
Ans.(a)
Attempt Questions 89 to 94 based upon the following case study.
A business man purchased a plot of 1000 Sq.mt. in a posh locality of a city in the year 1987 for a price
of Rs. 30,00,000. In the year 1988, he constructed a residential bungalow having 300 Sq.mt. built up
floor area at ground level and 100 Sq.mt. built up area at first floor level at the cost of Rs. 14,00,000.
Prevalent replacement cost of similar bungalow as on today is Rs. 30,000 per Sq.mt. Prevalent land
price in the locality at present is Rs. 60,000 per Sq.mt. Age of building is 30 years and the total life of
the building is 60 years.
89. What will be the depreciation amount of the bungalow by adopting straight line method
of depreciation and considering scrap value at 10 % ?
a) Rs.60,00,000
b) Rs.54,00,000
c) Rs.45,00,000
d) Rs.12,00,000
Ans . (b)
90. What will be the depreciation amount of the bungalow by adopting constant percentage
method of depreciation?
a) Rs.54,00,000
b) Rs.47,37,600
c) Rs.60,00,000
d) Rs.54,46,000
Ans. (b)
91. What will be the market value of the land at present?
a) Rs.240,00,000
b) Rs.600,00,000
c) Rs.480,00,000
d) Rs.410,00,000
Ans. (b)
92. What will be the total market value of the bungalow property for the bank loan purpose?
a) Rs.600,00,000
b) Rs.666,00,000
c) Rs.612,00,000
d) Rs.566,10,000
Ans (b)
93. What is the balance economic life of the building?
a) 60 years
b) 30 years
c) Zero
d) 45 years
Ans. (b)
94. Which of the following will not be considered for the estimation of present market value of
above property?
a) Deprecation
b) Current Replacement cost of the building
c) Economic obsolescence
d) Current land rate
Ans. (c)
MODEL QUESTION PAPER FOR VALUATION EXAMINATION
Asset Class: PLANT & MACHINERY
1. The price elasticity of demand measures the change in the quantity demanded of a
service in relation to a change in its price when nothing but the ___________ changes.
a) price
b) cost
c) quality
d) value
Ans.(a)
2. Other things remaining same, the law of demand states __________.
a) the higher the price, the lower the quantity demanded
b) the higher the price, the higher the quantity demanded
c) the higher the price, the lower the quantity supplied
d) the higher the price, the higher the quantity demanded
Ans.(a)
3. A market which has only one seller selling a homogeneous product to many buyers, is
known as _______.
a) Monopoly
b) Oligopolistic
c) Perfect Competition
d) Monopolist Competition
Ans.(a)
4. Which of the following statements is not true about factors of production?
a) Land means natural resources.
b) Labour means human resources.
c) Capital means financial resources.
d) Entrepreneurship means pursuit of opportunity beyond resources controlled.
Ans.(c)
5. Which of the following is not true about Ricardian theory of rent?
a) Rent increases with increase in population.
b) Rent is surplus above cost.
c) Rent is unearned income.
d) Rent arises only in the short run.
Ans.(d)
6. Which of the following is not correct about functions of money?
a) It is a medium of exchange.
b) It is a measure of economic power.
c) It is a standard of deferred payments.
d) It is a store of value.
Ans.(b)
7. Which of the following is not a cause of demand-pull inflation?
a) Increase in wages and salaries
b) Increase in Government spending
c) Increase in interest rates
d) Increase in exports
Ans.(c)
8. If a person has an income of Rs.30000 and his consumption is Rs.10000, then his
propensity to save is____.
a) 1.33
b) 0.33
c) 0.67
d) 1.50
Ans.(c)
9. Which of the following is an example of secondary sector of an economy?
a) Mining
b) Forestry
c) Food Processing
d) Pisciculture
Ans.(c)
10. How are Gross Domestic Product (GDP) and Gross National Product (GNP) related?
a) GNP = GDP – NR + NP
b) GNP = GDP + NR - NP
c) GNP = GDP + EX - IM
d) GNP = GDP -EX + IM
Ans.(b)
11. In double entry system, accounts are primarily classified in to ___________.
a) Receiver account & Giver account
b) Income account & Expenses account
c) Real account & Nominal account
d) Personal Account & Impersonal account
Ans.(d)
12. Discount received is recorded on which side of a cash book?
a) Receipts
b) Payments
c) Income
d) Expense
Ans.(b)
13. For a real estate construction company, which of the following are not part of Profit
and Loss Statement?
a) Revenue from apartment sales
b) Interest paid to lenders
c) Cash deposited in bank
d) Depreciation expense
Ans.(c)
14. Proposed dividend is shown in the Balance Sheet of a company under the head _____.
a) provisions
b) reserves and surplus
c) current liabilities
d) other liabilities
Ans.(a)
15. Difference between variable cost per unit and selling price can be classified as______
margin per unit.
a) contribution
b) gross
c) net
d) profit
Ans.(a)
16. Right to property is a ___ right.
a) fundamental
b) statutory
c) constitutional
d) human
Ans.(c)
17. Which of the following is not a requirement of a contract?
a) Competent Parties
b) Free Consent
c) Legal Object
d) Adequate Consideration
Ans.(d)
18. Performance of contract is one of the methods to__________.
a) create a new contract
b) set-aside a contract
c) make a contract void
d) discharge a contract
Ans.(d)
19. In case of a ___________, the duty is one imposed by the law and is owed to the
community at large.
a) contingent contract
b) cecile agreement
c) government tender
d) tort
Ans.(d)
20. As per section 36 of the Insolvency and Bankruptcy Code, 2016, the liquidator shall
hold the liquidation estate ___________.
a) as an agent of debtor
b) as an agent of committee of creditors
c) as a fiduciary for the benefit of all the creditors
d) as a fiduciary for the benefit of all the stakeholders
Ans.(c)
21. Section 231 (2) of the Companies Act, 2013 empowers a tribunal to __________, if it
is satisfied that the compromise sanctioned under section 230 cannot be implemented
satisfactorily, and the company is unable to pay its debts as per the scheme.
a) wind up the company
b) restructure the debt
c) call for rearrangement
d) replace the management
Ans.(a)
22. In a right skewed frequency distribution, __________.
a) mean is typically greater than the median
b) mean is typically less than the median
c) mean is typically less than the mode
d) mean is equal to mode which is equal to median
Ans.(a)
23. When numbers are associated with weights, then obtained mean is said to be _______.
a) weighted arithmetic mean
b) harmonic mean
c) standard mean
d) geometric mean
Ans.(a)
24. If two events A and B are mutually exclusive, the probability of occurrence of either A
or B is__________.
a) difference between individual probabilities of A and B
b) sum of the individual probabilities of A and B
c) always 1
d) one minus sum of the probabilities of A and B
Ans.(b)
25. Gradual shifting of a time series over a long period of time is called as __________.
a) periodicity
b) cycle
c) regression
d) trend
Ans.(d)
26. Technology that permits safe, efficient, and inexpensive clean-up of contaminants in
property tends to minimise _________ in asset value.
a) decrease
b) increase
c) fluctuations
d) variations
Ans.(a)
27. Which planning provision is required around the battery limit of industry and for
industry having odour problem?
a) No development zone
b) Green belt
c) Special permission zone
d) Industrial regulation zone
Ans.(b)
28. Which of the following is not covered under the Indian Forest Act, 1927?
a) Reserved forest
b) Village forest
c) Protected forest
d) Prohibited forest
Ans.(d)
29. Which of the following legislations does not provide for pollution control?
a) The Water (Prevention and Control of Pollution) Act, 1974
b) The Air (Prevention and Control of Pollution) Act, 1974
c) The Environment (Protection) Act, 1986
d) The Technology (Transfer of Abuse) Act, 2007
Ans.(d)
30. A valuer shall act with objectivity in his professional dealings by ensuring that his
decisions are made ________.
a) without the presence of any bias
b) with coercion
c) with confidence
d) with undue influence of any party
Ans.(a)
31. A valuer, while respecting the confidentiality of information acquired during the course
of performing professional services, shall maintain proper working papers for a period of
______.
a) 3 years
b) 2 years or such shorter period as required in its contract for a specific valuation
c) 3 years or such longer period as required in its contract for a specific valuation
d) 2 years
Ans.(c)
32. Integrity of registered valuer is seriously affected by ____.
a) being honest
b) being straightforward
c) misrepresenting any facts or situations
d) ignoring public interest
Ans.(c)
33. Which of the following is not a duty of the valuer?
a) To verify ownership in document and occupancy on actual site
b) To identify plot number in document as well as on-site
c) To be responsible for correctness of survey findings by his assistant
d) To investigate title of the property to be valued
Ans.(d)
34. Which of following activity is not the role of a valuer?
a) Physical verification
b) Estimation of replacement cost new
c) Market survey
d) Preparation of balance sheet
Ans. (d)
35. Amount appearing in the schedule of fixed assets of balance sheet is_________
a) Gross book value
b) Salvage value
c) Scrap value
d) Worth
Ans. (a)
36. A movable article used to make a room suitable for working can be classified as
________.
a) Plant
b) Machinery
c) Furniture
d) Vehicle
Ans (c)
37. Which one of the following value represents value in exchange?
a) Insurable value
b) Market value
c) Use value
d) Indemnity value
Ans (b)
38. Utility is the only value ingredient for following property
a) Investment property
b) Marketable non-investment property
c) Service property
d) Business assets
Ans (c)
39. Which of following aspect may be considered as legal aspect affecting value of asset?
a) Capacity
b) Capital cost
c) Raw material shortage
d) Custom duty
Ans (d)
40. Which of the following source is most reliable source pertaining to specification of
machine?
a) Internet
b) Equipment catalogue
c) Invoice
d) Maintenance schedule
Ans (b)
41. Number of years for which a new asset is profitably used for its intended purpose is
known as _______.
a) Economic life
b) Normal useful life
c) Age
d) Physical life
Ans (a)
42. Useful life of an asset is affected by which of the following?
a) Cost
b) Replacement cost
c) Wear and tear
d) Net Book Value
Ans (c)
43. Which of the following is considered to estimate net book value?
a) Gross book value
b) Reinstatement value
c) Replacement Cost New
d) Market Value
Ans (a)
44. Which of the following building structure is treated as plant and machinery?
a) Water tank for township
b) Roads
c) Sewer
d) Chimney to boiler
Ans (d)
45. Which of the following is basis for charging depreciation under the Income Tax Act,
1961?
a) Block of asset
b) Item wise
c) Replacement Cost New
d) Residual value
Ans (a)
46. Unit of maximum production according to the manufacturer's specification of
equipment is known as___________.
a) Installed capacity
b) Actual production
c) Licensed capacity
d) Utilization capacity
Ans (a)
47. Valuing all machines individually out of group of machines in a plant is known as___.
a) Part
b) Fraction
c) Whole
d) Part and Fraction
Ans (b)
48. Lowest value possible for a business is indicated by the_______.
a) net book value of the assets appearing in balance sheet
b) business enterprise value
c) liquidation value of the net tangible assets
d) value of intangible assets
Ans (c)
49. Which of the following approaches is generally used while valuing specialized plant
and machinery?
a) Market
b) Income
c) Cost
d) Sales comparison
Ans (c)
50. Which of the following is a direct cost component of replacement cost?
a) Material cost
b) Finance charges
c) Legal fees
d) License fees
Ans (a)
51. Damage caused to an asset naturally as a result of aging is known as _____.
a) wear and tear
b) economic obsolescence
c) functional obsolescence
d) operating obsolescence
Ans (a)
52. Which of following depreciation methods has equal amount of depreciation worked
out year wise?
a) Straight line
b) Reducing balance
c) Sum of years digits method
d) Iowa Curve
Ans (a)
53. Date of commissioning of a new plant is useful for which of the purposes in valuation
process?
a) Computation of depreciation
b) Computation of functional obsolescence
c) Computation of economic obsolescence
d) Computation of profit
Ans (a)
54. Depreciation caused to Machine in addition to physical wear and tear is known as
_____________.
a) straight line depreciation
b) depreciation due to usage
c) written down value
d) obsolescence
Ans (d)
55. Potential income means_______.
a) income that an enterprise is capable of earning
b) projected revenue
c) actual income earned by an enterprise
d) going-concern value
Ans (a)
56. Which of the following represents limitation of cost approach?
a) Quantifying depreciation for wear and tear
b) Cannot quantify economic obsolescence
c) Quantifying technological obsolescence
d) Estimation of replacement cost
Ans (b)
57. In which of following method valuer adjusts prices paid for comparables with subject
assets to estimate value of subject asset?
a) Depreciated replacement cost method
b) Discounted cash flow
c) Rule of thumb method
d) Sales comparison method
Ans (d)
58. Data collection by market approach does not normally include collecting one of the
following?
a) Technical specifications
b) Fixed Asset Register
c) Date of installation
d) Income attributable to the asset
Ans (d)
59. Which of the approaches is used by a valuer to determine present value of future
economic benefits of owning the property?
a) Income
b) Cost
c) Market
d) Rule of thumb
Ans (a)
60. Valuing assets by estimating net present value of future cash flows is known as
_____.
e) capitalization of earnings method
f) discounted cash flow method
g) sales comparison method
h) future cash flow method
Ans (b)
61. Discounted Cash Flow technique is based on___.
a) Scrap value
b) Present value of expected cash flow at a discount rate
c) Stigma value
d) Replacement cost new
Ans (b)
62. To focus major items during site visit is known as_____.
a) ABC analysis
b) Balance sheet study
c) Market research
d) Reconciliation of data received
Ans (a)
63. Which of following are treated as buildings in a valuation exercise?
a) Roads
b) Foundation of machine
c) Supporting steel structures for a boiler
d) Fixtures
Ans (a)
64. The current cost of brand new process plant is available in terms of________.
a) capacity per day
b) second hand price
c) repair cost
d) cost to cure
Ans (a)
65. Which of criterion is used to determine replacement cost new when cost of replica is
not available?
a) Like kind and type
b) Use historical cost of subject machine as replacement cost new
c) Use historical cost of comparable machine as replacement cost new
d) Use net book value of subject machine as a proxy of replacement cost
Ans (a)
66. Which of the following is reason for varying prices of machines with same technical
specifications?
a) Brand name
b) Climatic conditions
c) Obsolescence
d) Depreciation
Ans (a)
67. Which of following factor is relevant while adopting cost approach?
a) Income
b) Rate of return
c) Weighted average of Capital
d) Replacement cost new
Ans (d)
68. Which of following factor is considered while adopting income approach?
a) Income history
b) Replacement cost new
c) Asking price of comparable
d) Depreciation for wear and tear
Ans (a)
69. Which one of following is a contract between owner of equipment and one who uses
the equipment?
a) Term deposit
b) Recurring deposit
c) Leasing
d) Sale agreement
Ans (c)
70. It is an obligation of supplier of equipment in supplier's credit type leasing transaction
_____.
a) to provide equipment
b) to pay for principal amount
c) to pay for interest on principal amount
d) to make hypothecation of equipment
Ans (a)
71. Law of bailment is applicable only to ________.
a) land
b) building
c) movable property
d) goodwill
Ans (c)
72. Risk and reward of ownership of asset is transferred to lessee in which of the
following type of lease?
a) Finance
b) Operating
c) Sale and lease-back
d) Specialized service lease
Ans (a)
73. Who identifies a machine under lease?
a) Lessee
b) Lessor
c) Lessor suggests machine suitable to lessee
d) Lessee suggests machine suitable to lessor
Ans (a)
74. A set of self-made and mutually acceptable terms of a transaction consistent with law
is known as_________.
a) lease transaction
b) liabilities of lessee
c) liabilities of lessor
d) lease agreement
Ans (d)
75. In which type of lease, lessees recognise assets and liabilities in their balance sheets?
a) Finance
b) Operating
c) Partial payment lease
d) Specialized service lease
Ans (a)
76. Which of the following type of risk is considered as a default risk?
a) Economy risk
b) Interest rate risk
c) Purchase power risk
d) Currency risk
Ans (a)
77. Which of following approach is normally used for valuation of plant and machinery
assets for leasing?
a) Income
b) Cost
c) Market
d) Cost and Market
Ans (a)
78. Bed length is one of factor used for quoting prices for which of the following
machine?
a) Lathe
b) Milling
c) Grinder
d) Hacksaw
Ans (a)
79. In which of following purposes of valuation, replacement cost new is considered as
value of asset?
a) Auction
b) Collateral security
c) Purchase price allocation
d) Insurance
Ans (d)
80. Which one of following is defined as amount by which the carrying amount of an
asset exceeds its recoverable amount?
a) Scrap value
b) Market value
c) Salvage value
d) Impairment loss
Ans (d)
81. Which of the following case law indicates that machines fastened to floor of a factory
by owner is part of land?
a) Holland Vs. Hodgson
b) CIT Vs. Hindustan Polymers Ltd.
c) Sunil Synchem Vs. CIT
d) CIT Vs. Lucas Tvs. Ltd.
Ans (a)
82. Which of the following is not an essential feature for contract of sale?
a) Presence of two parties
b) Sale of goods
c) Consideration in terms of price
d) Unconditional contract
Ans (d)
83. Which one of the following industry is under compulsory licensing on account of
environmental, safety and strategic considerations?
a) Dairy
b) Light engineering
c) Telecommunications
d) Brewing of alcoholic drinks
Ans (d)
84. Which one of following is defined as engine, motor or other appliance which
generates or provides power under the Factories Act, 1948?
a) Electricity
b) Prime mover
c) Manufacturing
d) Instrument
Ans (b)
85. Which one of following peril is an add on cover in a standard fire insurance policy?
a) Earthquake
b) Aircraft damage
c) Riots
d) Storm
Ans (a)
86. When amount of insurance is less than the value of machinery damaged a loss payable
is as per ___.
a) sum insured
b) reinstatement value reported
c) condition of average
d) indemnity value
Ans (c)
87. The first step to be followed for procedure to be adopted to obtain claim amount after
a loss is ______.
a) claim preparation
b) paying salary to staff
c) paying off the creditors
d) company closure
Ans (a)
88. The fundamental principles on which insurance works is, __________.
a) sum insured
b) indemnity
c) insurable interest
d) utmost good faith
Ans (d)
89. Equipment arranged in a sequence as per requirement of articles to be manufactured is
known as____________.
a) process layout
b) product layout
c) combined layout
d) project layout
Ans (b)
90. Process flow charts help us understand _______.
a) raw material
b) finished product
c) equipment specification
d) sequence of process
Ans (d)
91. Tailor stitching a shirt for a customer falls under ________method of manufacture.
a) Job
b) Batch
c) Flow
Lean
Ans (a)
92. Blast furnace is used in following industrya)
Steel
b) Telecom
c) Food processing
d) Textile
Ans (a)
93. Which of the following equipment is used for transferring heat from one fluid to
another?
a) Heat exchangers
b) Centrifugal machines
c) Hot air generator
d) Incinerator
Ans (a)
94. A note on exclusion of site investigation for contamination of Valuation site if any
appears in _________ section of the report.
a) Transmittal letter
b) Valuation methodology
c) Valuation procedures
d) Assumptions
Ans (d)
95-100. Read the following passage and answer questions that follows (6x1 = 6 marks)
You are given a valuation assignment to value a vehicle being a bulker for bank finance,
proposed to be purchased by Mr. Y. Mr. X had purchased the vehicle for Rs.30 lakh in January
2014. Current cost of brand new vehicle after considering negotiation discount in new
condition is Rs.33 lakh as per dealer of vehicle. Your survey indicated that:
(i) recently similar vehicle with exactly similar mileage and model was sold for Rs.17 lakh
and
(ii) asking prices for similar vehicles is Rs.18 lakh.
Based on your discussions with suppliers of vehicle and your own analysis, total economic life
of vehicle is considered as 10 years, if vehicle is used for commercial use similar to the subject
vehicle under valuation. Mr. X informed Mr. Y that Mr. X would be required to spend about
Rs.2 lakh for repairs to the body of vehicle and replacement of worn out tyres. Your discussions
with the mechanic indicated that the quote for repairs given by Mr. Y is reasonable and vehicle
sold recently did not require repairs as compared to the subject vehicle. Book value of the
vehicle as at valuation date is Rs.15.75 lakh. Your research has indicated that index for light,
medium and heavy commercial vehicles in January 2014 is 111.6 and as at Valuation Date is
113.2.
95. Historical cost of vehicle is Rs. ___lakh.
a) 30
b) 33
c) 18
d) 19
Ans (a)
96. Replacement cost new of vehicle is Rs. ___lakh.
a) 33
b) 30.43
c) 18
d) 19
Ans (a)
97. Depreciation for vehicle by straight line method, considering age of vehicle as 4 years
and salvage value as 5% is Rs. ___lakh.
a) 12.54
b) 11.56
c) 6.84
d) 7.22
Ans (a)
98. Depreciation of vehicle considering cost of repairs is Rs. __lakh
a) 14.54
b) 13.56
c) 8.84
d) 9.22
Ans (a)
99. Depreciated replacement cost of vehicle after considering repair cost is Rs. ___lakh.
a) 18.46
b) 16.87
c) 9.16
d) 9.78
Ans (a)
100. Fair Market Value of Vehicle for bank finance is Rs. _________lakh.
a) 18.46
b) 16.87
c) 15.75
d) 16
Ans (d)
1-Demand for a commodity refers to:
Need for the commodity
Desire for the commodity
Amount of the commodity demanded at a particular price and at a particular time
Quantity demanded of that commodity
(Ans: c)
2-Which among the following statement is INCORRECT?
On a linear demand curve, all the five forms of elasticity can be depicted’
If two demand curves are linear and intersecting each other then coefficient of elasticity would be same
on different demand curves at the point of intersection.
If two demand curves are linear, and parallel to each other then at a particular price the coefficient of
elasticity would be different on different demand curves.
The price elasticity of demand is expressed in terms of relative not absolute, changes in Price and
quantity demanded’
(Ans: b)
3-If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the
consumers of the good to:
Increase
Decrease
Remain the same
Become zero
(Ans: a)
4-The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
Zero
Infinite
Equal to one
Greater than zero but less than infinity
(Ans: b)
5-An individual demand curve slopes downward to the right because of the:
Working of the law of diminishing marginal utility
substitution effect of decrease in price
income effect of fall in Price
All of the above
(Ans: d)
6-Income elasticity of demand is defined as the responsiveness of:
Quantity demanded to a change in income
Quantity demanded to a change in price
Price to a change in income
Income to a change in quantity demanded
(Ans:a)
7-The supply of a good refers to:
Stock available for sale
Total stock in the warehouse
Actual Production of the good
Quantity of the good offered for sale at a particular price per unit of time
(Ans: d)
9-The cost of one thing in terms of the alternative given up is called:
Real cost
Production cost
Physical cost
opportunity cost
(Ans: d)
10-Assume that consumer’s income and the number of sellers in the market for good X both falls. Based
on this information, we can conclude with certainty that the equilibrium:
Price will decrease
Price will increase
Quantity will increase
Quantity will decrease
(Ans: d)
14-Demand for factors of production is:
Derived demand
Joint demand
Composite demand
None of the above
(Ans: a)
15-The producer’s demand for a factor of production is governed by the ___ of that factor.
Price
Marginal Productivity
Availability
Profitability
(Ans: b)
23-Which statistical measure helps in measuring the purchasing power of money?
Arithmetic average
Index numbers
Harmonic mean
Time series
(Ans: b)
25-Which among the following is NOT a correct statement?
Welfare economics is based on value judgements.
Welfare economics is also called ‘economics with a heart’.
Welfare economics focuses on questions about equity as well as efficiency.
The founder of Welfare economics was Alfred Marshall.
(Ans: d)
26-Who is the ‘lender of the last resort’ in the banking structure of India?
State Bank of India
Reserve Bank of India
EXIM Bank of India
Union Bank of India
(Ans: b)
27- ____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount
approved bills held by the commercial banks.
Repo rate
Bank rate
Prime lending rate
Reverse repo rate
(Ans: b)
28-In order to control credit, Reserve Bank of India should:
Increase CRR and decrease Bank rate
Decrease CRR and reduce Bank rate
Increase CRR and increase Bank rate
Reduce CRR and increase Bank rate
(Ans: c)
31-Number of times a unit of money changes hands in the course of a year is called_______
Supply of money
Purchasing power of money
Velocity of money
Value of money
(Ans: c)
32-_____ is the difference between total receipts and total expenditure.
Capital deficit
Budget deficit
Fiscal deficit
Revenue deficit
(Ans: b)
35-Which among the following is a cause of inflation?
Deficit financing
Rise in external loans
Unfavourable balance of payment
A hike in the CRR by the central bank of the country
(Ans: a)
36-Cost push inflation occurs because of:
Wage push
Profit push
Both A and B
Ineffective policies of the government
(Ans: c)
37-Which among the following is NOT correct?
During inflation lenders suffer and borrowers benefit out’
Rising inflation indicates rising aggregate demand and indicates comparatively lower supply and higher
purchasing capacity among the consumers’
With rising inflation the currency of the economy depreciates provided it follows the flexible currency
regime.
Inflation decreases the nominal (face) value of the wages while the real value increases.
(Ans:d)
38-The capital that is consumed by an economy or a firm in the production process is known as:
Capital loss
Production cost
Dead-weight loss
Depreciation
(Ans: d)
40-Which among the following is NOT correct?
Floating exchange rate system works on the market mechanism
Floating exchange rate breeds uncertainties and speculation
Economic and political factors and value judgments influence the choice of the exchange rate system
The system of floating exchange rate requires comprehensive government intervention
(Ans: d)
48-A change in fiscal policy affects the balance of payments through:
The current account only
The capital account only
Both, the current account and capital account
Neither current account nor capital account
(Ans: c)
49-Fiscal Policy means:
Policy relating to money and banking in a country
Policy relating to non-banking financial institutions
Policy relating to government spending’ taxation and borrowing
Policy relating to financial matters of international trade
(Ans: c)
50-Which one of the following is NOT the objective of fiscal policy of government of India?
Full employment
Price stability
Regulation of inter-state trade
Economic growth
(Ans: c)
51-Monetary policy is implemented by in India.
The Ministry of Finance
Planning Commission
The Parliament
Reserve Bank of India
(Ans: d)
53-Balance of Payment on capital account includes:
Balances of private direct investments
Private portfolio investments
Government loans to foreign governments
All of the above
(Ans: d)
56-_____unemployment may result when some workers are temporarily out of work while changing job
Seasonal
Frictional
Disguised
Technical
(Ans: b)
57-Which among below is the economic effect of population pressure in India?
Higher burden of unproductive consumers on total population
Disintegration of family
Overcrowding of cities
Ecological degradation
(Ans: a)
58-Which among the following may be considered as a significant cause of low agriculture productivity in
India?
Defective tenancy reforms
Lack of enthusiasm among farmers
Conservative social systems
Absence of agricultural inputs to raise productivity
(Ans: a)
59-What have been the reasons of deficit in India’s Balance of Trade in the past?
Very large rise in imports
Modest growth of exports
High cost and low quality production
All of the above
(Ans: d)
60-A high average level of rear income per head is always associated with a high proportion of the
working population engaged in __________ sector.
Primary
Secondary
Tertiary
None of the above
(Ans: c)
62-The credit of developing the concept of modern economic growth goes to:
Arthur Lewis
Michael P. Todaro
Gunnar Mydral
Simon Kuznets
(Ans: d)
63-The most simple and popular method of measuring economic development is to calculate the trend of
gross national product (GNP) at __________
Current prices
Constant prices
Both of the above
None of the above
(Ans: b)
64-“Underdeveloped countries are the slums of the world Economy.” This statement is by
Ragnar Nurkse
A.N. Caimcross
Colin Clark
Jagdish Bhagwati
(Ans: b)
65-Which among the following is a characteristic of underdevelopment?
Vicious circle of poverty
Rising mass consumption
Growth of industries
High rate of urbanization
(Ans: a)
66-According to W.W. Rostow, the stages of economic growth are:
Two
Three
Four
Five
(Ans: d)
67-Most of the underdeveloped economies suffer from ____ which do not let the rate of growth go up
from a lower level.
High population pressures
High infant mortality
Hugh monetary mismanagement
High level of technological unemployment
(Ans: a)
68-By __ growth rate of an economy can be speeded up.
Investment in share market
Investment abroad
Investment in human capital formation
Investment in primary sector
(Ans: c)
69-When the population growth rate of an economy becomes greater than the achievable economic
growth rate, it is known as:
Population Explosion
Population Trap
Population Crisis
None of the above
(Ans: b)
72-An expression coined by economists to describe im economy that is growing at such a slow pace that
more jobs are being lost than are being added:
Stagflation
Recession
Growth Recession
Ritchet Inflation
(Ans: c)
75-Who has contributed the modem theory of interest rate determination?
Paul A. Samuelson
Gunnar Myrdal
Knut Wicksell
J.R. Hicks
(Ans: d)
76-Whose name is associated with the “Uncertainty-bearing theory of profit”?
J. Schumpeter
F.H. Knight
J.B. Clark
F.W. Watker
(Ans: b)
77-Who has sought to measure Consumer’s Surplus with the help of indifference curve technique?
Alfred Marshall
Edgeworth
J.R. Hick
Pareto
(Ans: c)
78-Who among the following has given the modem theory of distribution?
Nicholas Kaldor
Wicksteed
David Ricardo
Mrs. Joan Robinson
(Ans: a)
79-ln a free enterprise economy, which among the following are the determinants of Investment?
Rate of interest
Marginal efficiency of capital
Both A and B
None of the above
(Ans: c)
80- _____ factors determine the position and slope of consumption curve.
Objective
Subjective
Both A and B
None of the above
(Ans: b)
81-Keynes believed that the equality between savings and investment is brought about by:
Rate of interest
Changes in income
Availability of capital
Marginal efficiency of investment
(Ans: b)
82-Which among the following is NOT an assumption of Pareto optimality?
Every consumer wishes to maximize his level of satisfaction.
All the factors of production are used in the production of every commodity.
Conditions of perfect competition exist making all the factors of production perfectly mobile
The concept of utility is cardinal and cardinal utility function of every consumer is given.
(Ans: d)
83-“Money is a matter of functions four, a medium, a measure, a standard and _______”. What is the
fourth function of money indicated in this popular phrase?
A stock
A flow
A store
A payment
(Ans: c)
84-Which of the following measure of the high-power money supply (H) has been used by RBI of India
Currency held by the public + Other deposits with the RBI
Cash reserves of the commercial banks + Other deposits with the RBI
Currency held by the public + cash reserves of the commercial banks + other deposits with the RBI
Currency held by the public + cash reserves of the commercial banks + Time deposits of the commercial
banks + other deposits with the RBI
(Ans: c)
86-For measuring the changes in the price level of the country, which among the following index number
is used
Cost of living index number
Production index number
Security Price index number
Whole sale price index number
(Ans: d)
88-Under free exchange markets the rate of foreign exchange is determined by:
Balance of Payments theory
Mint par theory
Purchasing power parity theory
None of the above
(Ans: a)
89-When national income is calculated with reference to a base year, it is called:
Nominal national income
Net national income
Real national income
Gross national income
(Ans:c)
90-Isoguants are right angled only when:
Factors are perfect substitutes
Factors are neutral
Factors are perfect complements
Factors are scarce
(Ans:c)
95-Which of the following is a characteristic of capital as a factor of production?
It never depreciates
It is fixed in supply
It is an active factor of production
It is a passive factor of production
(Ans: d)
96-By Parallel economy is meant an economy:
Which runs side by side of the existing economy?
Which has the same characteristics as the main economy?
Which has variety of parallel businesses?
Which has plentiful of black money?
(Ans: d)
97-On which law of consumption the concept of consumer’s surplus is based?
Engel’s law
Law of demand
First law of Gossen
Second law of Gossen
(Ans: c)
98-Which among the following has not been a measure adopted by the government to unearth black
money in India?
Voluntary Disclosure schemes
Demonetization of currency
Special Bearer Bond Scheme
Creating civic consciousness
(Ans: d)
100-Which among the following are the factors that determine the national income of a country?
Quantity and Quality of factors of production
The state of technical knowledge
Economic and political stability
All of the above
(Ans: d)
101. The supply and demand model applies when three of the following four conditions are met. Which
condition is not required?
a) There must be many buyers.
b) There must be many sellers.
c) The buyers and sellers must trade an identical item.
d) The item traded must be a product.
Correct answer:
d) The item traded must be a product.
102.Which of the following predictions is not made by the supply and demand model?
a) If there is excess demand, the price will rise.
b) If there is excess supply, the price will fall.
c) If there is no excess demand or excess supply, the market will be in equilibrium.
d) A market which is out of equilibrium will always move rapidly to the equilibrium,
d) A market which is out of equilibrium will always move rapidly to the equilibrium,
103. Suppose there is excess supply in a market and the price decreases. Which of the following
combinations of events will occur?
a) There will be a fall in quantity supplied and a rise in quantity demanded.
b) There will be a fall in quantity supplied and a rise in demand.
c) There will be a fall in supply and a rise in quantity demanded.
d) There will be a fall in supply and a rise in demand.
Correct answer:
a) There will be a fall in quantity supplied and a rise in quantity demanded.
104.Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the
demand curve slopes downwards. Which of the following would not occur?
a) An excess supply.
b) A fall in price.
c) A fall in supply.
d) A fall in the equilibrium level of expenditure.
Correct answer:
c) A fall in supply.
105. Suppose a market is in equilibrium, and then the demand increases. Which of the following would
be shown on a graph that illustrated the effects?
a) An excess demand at the initial equilibrium price.
b) An excess demand at the new equilibrium price.
c) An excess supply at the initial equilibrium price.
d) An excess supply at the new equilibrium price.
Correct answer:
a) An excess demand at the initial equilibrium price.
106.Suppose there is an increase in demand in a market where the supply curve slopes upwards and
the demand curve slopes downwards. Which of the following might not occur?
a) An excess supply.
b) A fall in price.
c) A rise in the quantity traded.
d) A fall in the equilibrium level of expenditure.
orrect answer:
d) A fall in the equilibrium level of expenditure.
107. Which of the following might not lead to an increase in the demand for a product that can be
stored?
a) A fall in the price of a complement.
b) A rise in consumer incomes.
c) An increase in the number of buyers.
d) An expected rise in price.
b) A rise in consumer incomes.
108.Which of the following might not lead to a decrease in the demand for a type of labour?
a) A decrease in the number of firms using the labour.
b) An increase in the productivity of the labour.
c) A fall in the price of a substitute input.
d) A decrease in the demand for the produce or products which the labour is used to produce.
b) An increase in the productivity of the labour.
109.Which of the following would not lead to a decrease in the supply of a product that can be stored?
a) An increase in the demand for a joint product.
b) A rise in the price of another input.
c) A decrease in the number of firms supplying the product.
d) An expected rise in the price of the product.
a) An increase in the demand for a joint product.
110. Which of the following could not lead to an increase in price combined with an increase in the
quantity traded?
a) An increase in demand combined with unchanged supply.
b) An increase in demand combined with a decrease in supply.
c) A decrease in demand combined with an increase in supply.
d) An increase in demand combined with an increase in supply.
Correct answer:
c) A decrease in demand combined with an increase in supply.
112. Which of the following statements is true?
a) When an economy grows, firms would prefer to be making inferior goods rather than making normal
goods.
b) If a firm notices that the price of a substitute for its product has fallen, it would prefer the CED
between the products to be far from zero rather than close to zero.
c) If a firm notices that the price of a complement for its product has risen, it would prefer the CED
between the products to be far from zero rather than close to zero.
d) If a firm's costs increase and it has to increase the price of its output, it would prefer demand to be
price inelastic rather than price elastic.
113. Which of the following statements is false?
a) Price elasticity of demand is negative for most products.
b) Price elasticity of supply is positive for most products.
c) Income elasticity of demand is positive for normal goods.
d) Cross elasticity of demand is positive between complements.
114. Which of the following statements about economic growth is false?
a) Economic growth solves the economic problem.
b) Economic growth can be helped by having new technology.
c) Economic growth can be helped with more education.
d) Economic growth can be helped by using tidal power.
Answer
a) Economic growth solves the economic problem.
115. Each of the following statements includes two terms. In three cases, the two terms mean the same
as each other. In which case do the two terms not mean the same as each other?
a) Nominal GDP and GDP at current prices.
b) Real GDP and GDP at constant prices.
c) The base period and the reference period.
d) Changes in real GDP and the GDP deflator
116. In what circumstances is an economy said to be in recession?
a) If real GDP falls in one quarter compared with the quarter before.
b) If real GDP falls for two consecutive quarters.
c) If real GDP falls in one year compared with the year before.
d) If real GDP falls for two consecutive years.
our answer:
b) If real GDP falls for two consecutive quarters.
117. Which of the following statements is false?
a) Even in the worst recorded cases of hyperinflation, the price level always took at last a week to
double.
b) Some people lose out if actual inflation turns out to be below the rate they expected.
c) Some people lose out if actual inflation turns out to be above the rate they expected.
d) Some people lose out if actual inflation turns out to be equal the rate they expected.
118. Which of the following statements is false?
a) The GDP deflator is a price index that covers all goods and services included in GDP.
b) The RPI is a price index that covers a wide range of goods and services bought by households.
c) The CPI is a price index that covers a wide range of goods and services bought by households.
d) The CPI generally rises more quickly than the RPI.
119. In which of the following situations would real GDP increase while the price level stayed the same?
a) The aggregate demand and aggregate supply curves both shifted up by the same amount.
b) The aggregate demand and aggregate supply curves both shifted right by the same amount.
c) The aggregate demand curve stayed put but aggregate supply shifted right.
d) The aggregate demand curve shifted right but the aggregate supply curve stayed put.
Correct answer:
b) The aggregate demand and aggregate supply curves both shifted right by the same amount.
120. Which of the following must always be equal?
a) Actual saving and actual investment in a two-sector economy
b) Planned saving and planned investment in a two-sector economy
c) Actual saving and actual investment in a four-sector economy
d) Planned saving and planned investment in a four-sector economy
a) Actual saving and actual investment in a two-sector economy
121. Which of the following factors might cause a country's consumption function to shift upwards?
a) A fall in share prices.
b) A fall in interest rates.
c) Expectations that the economy will soon go into a recession.
d) Households deciding to be thriftier.
Correct answer:
b) A fall in interest rates.
122. The trade-off between inflation and unemployment is called -------------- curve.(Philips)
123. The inflationary situation where people go with basketful of money and come home with pocketful
of commodities is ---------------------------(Hyper inflation)
124.A situation where inflation is accompanied by stagnation is called ------------------(Stagflation)
125. A situation wherein prices rise on account of increasing cost of production ------------(cost-push
inflation)
126.-----------------------(Philips curve) indicates the inverse relationship between the rate of
unemployment and the rate of increase in money wages.
127._______________(Galloping inflation) is also called hyper inflation.
128. The ratio of change in national income resulting from a change in autonomous investment is called
__________________( Multiplier )
129.________________varies with the changes in the level of national income(Induced investment)
130.________________(Marginal propensity to consume) is the ratio of change in total consumption to
change in total income.
131._______(GNP Deflator) is an adjustment factor which is used to convert nominal GNP into real
GNP.
132.Supply curves generally slopes _______________(upwards)
133.Supply tends to be _________________(inelastic) in short-run.
134.India computes 4 retail indices for different groups, Consumer price index for
1. industrial workers 2. Urban non-manual employees 3.___________(agrilabor)4. Rural labor
135. Policy makers should develop a ----------------------index( producers price index) which measures the
selling price of goods and services to make a better assessment of inflation.
All The Best
MCQ TIME SERIES
MCQ 16.1
An orderly set of data arranged in accordance with their time of occurrence is called:
(a) Arithmetic series (b) Harmonic series (c) Geometric series (d) Time series
MCQ 16.2
A time series consists of:
(a) Short-term variations (b) Long-term variations(c) Irregular variations (d) All of the above
MCQ 16.3
The graph of time series is called:
(a) Histogram (b) Straight line (c) Historigram (d) Ogive
MCQ 16.4
Secular trend can be measured by:
(a) Two methods (b) Three methods (c) Four methods (d) Five methods
MCQ 16.5
The secular trend is measured by the method of semi-averages when:
(a) Time series based on yearly values (b) Trend is linear
(c) Time series consists of even number of values (d) None of them
MCQ 16.6
Increase in the number of patients in the hospital due to heat stroke is:
(a) Secular trend (b) Irregular variation (c) Seasonal variation (d) Cyclical variation
MCQ 16.7
The systematic components of time series which follow regular pattern of variations are called:
(a) Signal (b) Noise (c) Additive model (d) Multiplicative model
MCQ 16.8
The unsystematic sequence which follows irregular pattern of variations is called:
(a) Noise (b) Signal (c) Linear (d) Non-linear
MCQ 16.9
In time series seasonal variations can occur within a period of:
(a) Four years (b) Three years (c) One year (d) Nine years
MCQ 16.10
Wheat crops badly damaged on account of rains is:
(a) Cyclical movement (b) Random movement (c) Secular trend (d) Seasonal movement
MCQ 16.11
The method of moving average is used to find the:
(a) Secular trend (b) Seasonal variation (c) Cyclical variation (d) Irregular variation
MCQ 16.12
A complete cycle consists of a period of:
(a) Prosperity and depression (b) Prosperity and recovery
(c) Prosperity and recession (d) Recession and recovery
MCQ 16.13
A complete cycle passes through:
(a) Two stages (b) Three stages (c) Four stages (d) Difficult to tell
MCQ 16.14
Most frequency used mathematical model of a time series is:
(a) Additive model (b) Mixed model (c) Multiplicative model (d) Regression model
MCQ 16.15
A time series consists of:
(a) No mathematical model (b) One mathematical model
(c) Two mathematical models (d) Three mathematical models
MCQ 16.16
In a straight line equation Y = a + bX; a is the:
(a) X-intercept (b) Slope (c) Y-intercept (d) None of them
MCQ 16.17
In a straight line equation Y = a + bX; b is the:
(a) Y-intercept (b) Slope (c) X-intercept (d) Trend
MCQ 16.18
Value of b in the trend line Y = a + bX is:
(a) Always negative (b) Always positive(c) Always zero (d) Both negative and positive
MCQ 16.19
In semi averages method, we decide the data into:
(a) Two parts (b) Two equal parts (c) Three parts (d) Difficult to tell
MCQ 16.20
The sum of squares of residuals is denoted by:
MCQ 16.21
In fitting a straight line, the value of slope b remain unchanged with the change of:
(a) Scale (b) Origin (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ 16.22
If a straight line is fitted to the time series, then:
MCQ 16.23
Moving average method is used for measurement of trend when:
(a) Trend is linear (b) Trend is non linear (c) Trend is curvilinear (d) None of them
MCQ 16.24
When the trend is of exponential type, the moving averages are to be computed by using:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) Weighted mean
MCQ 16.25
The long term trend of a time series graph appears to be:
(a) Straight-line (b) Upward (c) Downward (d) Parabolic curve or third degree curve
MCQ 16.26
Indicate which of the following an example of seasonal variations is:
(a) Death rate decreased due to advance in science
(b) The sale of air condition increases during summer
(c) Recovery in business (d) Sudden causes by wars
MCQ 16.27
The most commonly used mathematical method for measuring the trend is:
(a) Moving average method (b) Semi average method
(c) Method of least squares (d) None of them
MCQ 16.28
A trend is the better fitted trend for which the sum of squares of residuals is:
(a) Maximum (b) Minimum (c) Positive (d) Negative
MCQ 16.29
Decomposition of time series is called:
(a) Historigram (b) Analysis of time series (c) Histogram (d) Detrending
MCQ 16.30
The fire in a factory is an example of:
(a) Secular trend (b) Seasonal movements (c) Cyclical variations (d) Irregular variations
MCQ 16.31
Increased demand of admission in the subject of computer in Pakistan is:
(a) Secular trend (b) Cyclical trend (c) Seasonal trend (d) Irregular trend
MCQ 16.32
Damages due to floods, droughts, strikes fires and political disturbances are:
(a) Trend (b) Seasonal (c) Cyclical (d) Irregular
MCQ 16.33
The general pattern of increase or decrease in economics or social phenomena is shown by:
(a) Seasonal trend (b) Cyclical trend (c) Secular trend (d) Irregular trend
MCQ 16.34
In moving average method, we cannot find the trend values of some:
(a) Middle periods (b) End periods (c) Starting periods (d) Between extreme periods
MCQ 16.35
The best fitting trend is one which the sum of squares of residuals is:
(a) Negative (b) Least (c) Zero (d) Maximum
MCQ 16.36
In fitting of a straight line, the value of slope remains unchanged by change of:
(a) Scale (b) Origin (c) Both origin and scale (d) None of them
MCQ 16.37
Depression in business is:
(a) Secular trend (b) Cyclical (c) Seasonal (d) Irregular
MCQ 16.38
In fitting of straight line = 0
(a) All the observed Y values lie on the line
(b) All the Y values are greater than corresponding values
(c) All the Y values are positive
(d) None of them
MCQ 16.39
Semi-averages method is used for measurement of trend when:
(a) Trend is linear (b) Observed data contains yearly values
(c) The given time series contains odd number of values(d) None of them
MCQ 16.40
Moving-averages:
(a) Give the trend in a straight line (b) Measure the seasonal variations
(c) Smooth-out the time series (d) None of them
MCQ 16.41
The rise and fall of a time series over periods longer than one year is called:
(a) Secular trend (b) Seasonal variation (c) Cyclical variation (d) Irregular variation
MCQ 16.42
A time series has:
(a) Two components (b) Three components (c) Four components (d) Five components
MCQ 16.43
The multiplicative time series model is:
(d) Y = a + bX + cX2
(a) Y = T + S + C + I (b) Y = TSCI (c) Y = a + bX
MCQ 16.44
The additive model of the time series is:
(d) Y = a + bX + cX2
(a) Y = T + S + C + I (b) Y = TSCI (c) Y = a + bX
MCQ 16.45
The difference between the actual value of the time series and the forecasted value is called:
(a) Residual (b) Sum of variation (c) Sum of squares of residual (d) All of the above
MCQ 16.46
A pattern that is repeated throughout a time series and has a recurrence period of at most one year is called:
(a) Cyclical variation (b) Irregular variation (c) Seasonal variation (d) Long term variation
MCQ 16.47
A business cycle has:
(a) One stage (b) Two stages (c) Three stages (d) Four stages
MCQ 16.48
When the production of a thing is maximum, this stage is called:
(a) Boom (b) Recovery (c) Recession (d) Depression
MCQ 16.49
When the production of a thing is minimum, this stage is called:
(a) Prosperity (b) Recession (c) Recovery (d) Depression
MCQ 16.50
When the production of thing is increasing towards prosperity, this stage is called as:
(a) Recession (b) Recovery (c) Boom (d) Depression
MCQ 16.51
When the production of thing is decreasing, this stage is called:
(a) Recession (b) Recovery (c) Prosperity (d) Depression
MCQ 16.52
The straight line is fitted to the time series when the movements in the time series are:
(a) Nonlinear (b) Linear (c) Irregular (d) Upward
MCQ 16.53
If an annual time series consisting of even number of years is coded, then each coded interval is equal to:
(a) Half year (b) One year (c) Both (a) and (b) (d) Two years
MCQ 16.54
A second degree parabola has:
(a) One constant (b) Two constant (c) Three constant (d) No constant
MCQ 16.55
The normal equations in fitting a second degree parabola are:
(a) Two (b) Three (c) Four (d) Five
MCQ 16.56
The second degree parabola is fitted to the time series when the variations are:
(a) Linear (b) Nonlinear (c) Random (d) Downward
MCQ 16.57
In fitting a second degree parabola, the value of c is not affected with the change of :
(a) Scale (b) Origin (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ 16.58
For odd number of year, formula to code the values of X by taking origin at centre is:
(a) X = year – average of years (b) X = year – first year
(c) X = year – last year (d) X = year – ½ average of years
MCQ 16.59
For even number of years when origin is in the centre and the unit of X being one year, then X can be coded as:
(a) X = (year – average of years)/2 (b) X = year – average of years
(c) X = year – 0.5 average of years (d) X = average of years – year
MCQ 16.60
For even number of years when origin is in the centre and the unit of X being half year, then X can be coded as:
(a) X = year – average of years (b) X = 2(year – average of years)
(c) X = (year – average year)/2 (d) X = year – ½ average of years
MCQ 16.61
In semi averages method, if the number of values is odd then we drop:
(a) First value (b) Last value (c) Middle value (d) Middle two values
MCQ 16.62
The trend values in freehand curve method are obtained by:
(a) Equation of straight line (b) Graph
(c) Second degree parabola (d) All of the above
MCQ 16.63
∑X = ∑X3 = 0, if origin is:
(a) At the end of time period (b) Any where
(c) At the middle of time period (d) At the beginning of time period
GAT Subject Management Sciences Accounting MCQs (51-100)
(c) Preparation of companies’ financial reports is governed in Pakistan under
(a) State Bank of Pakistan Act (b) Companies Ordinance 1984
(c) Partnership Act (d) Banking Companies Ordinance 1962
(e) External Reporting is the Result of
(a) Financial Accounting (b) Management Accounting (c) Cost Accounting (d) Social Accounting
53. Special purpose financial statements are prepared by
(a) Management Accountants (b) Cost Accountants
(c) Financial Accountants (d) Both a and c
54. A large organization with separate legal status is known as
(a) Sole proprietorship (b) Partnership (c) Joint stock company (d) None
55. Which of these characteristics does not apply to partnership?
(a) Unlimited liabilities (b) Unlimited life (c) Mutual agency (d) Income tax
56. The output of financial accounting is
(a) The measurement of accounting income (b) The preparation of financial position
(c) The measurement of taxable income (d) The preparation of financial reports
57. The personnel, procedure, devices and records used by an organization to develop accounting information
and communicate that information to decision maker are called which of the following?
(a) Audits (b) Accounting information systems (AIS) (c) Personnel systems (d) Internal control
structures
58. Which of the following groups use financial accounting?
(a) Management, employees, shareholders and lenders (b) Suppliers, customers and competitors
(c) Tax authorities, government and general public (d) All of the above
59. Which of the following business entity is known as firm?
(a) Sole trader-ship (b) Partnership (c) Co-operative society (d) Company
60. Prospectus for shares can be issued by
(a) Public limited companies (b) Private limited companies (c) Both a and b (d) Non
of Above
61. All economics costs that a business incur through its operation to earn revenues?
(a) Assets (b) Drawing (c) Expense (d) Revenue
62. Which of the following statements is false?
(a) If you increase an asset account, you could increase a liability account.
(b) If you decrease an asset account, you could increase a shareholders’ equity account
(c) If you increase an asset account, you could decrease an asset account
(d) If you decrease an asset account, you could decrease a shareholders’ equity account
63. All of following are Assets except
(a) Prepaid Rent (b) Goods (c) Unearned Income (d) b and c
64. Which One of the following is an example of Intangible asset?
(a) Copy rights (b) Discount on issue of debentures (c) Investments (d) Preliminary expenses
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GAT Subject Management Sciences Accounting MCQs (51-100)
65. To understand and use accounting information in making economic decisions, you must understand
(a) The nature of economic activities that accounting information describes
(b) The assumptions and measurement techniques involved in developing accounting information
(c) Which information is relevant for a particular type of decision that is being made?
(d) All of Above
66. How many approaches accounting has
(a) One (b) Two (c) Three (d) None
67. The long-run objective of financial management is to
(a) Maximize the value of the firm's common
stock (c) Maximize earnings per share
(b) Maximize return on investment
(d) Maximize market share
68. Purpose of an accounting system include all of the following except
(a) Interpret and record the effects of business transaction
(b) Classify the effects of transactions to facilitate the preparation of reports
(c) Summarize and communicate information to decision makers
(d) Dictate the specific type of business transaction that the enterprise may engage in
69. In preparing a work sheet, a net loss would be computed and entered in the
(a) Debit column of the income statement columns of the worksheet
(b) Credit column of the income statement in worksheet
(c) In the debit column of the adjusted trial balance
(d) In the credit column of the balance sheet columns of the worksheet
70. An accrued revenue would be shown on the balance sheet as,
(a) A receivable (b) A payable (c) Prepaid revenue (d) Unearned revenue
71. If the accountant forgets to adjust the prepaid expense account, there will be,
(a) An understatement of net income (b) An overstatement of net income
(c) An overstatement of expense (d) a and c
72. Which of the following is true for every adjusting entry,
(a) They affect only income statement accounts
(b) They affect balance sheet account and an income statement account
(c) They affect only balance sheet accounts(d) They affect only accounts with normal debit balance
73. Earnings are the result of the difference between:
(a) Revenue and assets (b) Revenue and liabilities (c) Revenue and expenses (d) Liabilities and expenses.
74. An examination of records of financial accounts to verify their accuracy is called
(a) Inspection (b) Audit (c) Reporting (d) Budget
75. The accounts which have their existence after the close of accounting year is called
(a) Nominal accounts (b) Real accounts (c) final accounts (d) None
76. The balance in the office supplies account on July 1 was $3,200, supplies purchased during July were
$2,500, and the
supplies on hand at July 31 were $2,800. The amount to be used for the appropriate adjusting entry is:
(a) $3,500 (b) $2,800 (c) $3,200 (d) $2,900
77. Which of the following would be included in a cash budget?
(a) Depreciation charges (b) Dividends (c) Goodwill (d) Patents
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GAT Subject Management Sciences Accounting MCQs (51-100)
78. A business pays weekly salaries of $15,000 on Friday for a five-day week ending on that day. The adjusting
entry necessary at the end of the fiscal period ending on Thursday is:
(a) Debit Salaries Payable, $12,000; credit Cash, $12,000
(b) Debit Salary Expense, $12,000; credit Drawing, $12,000
(c) Debit Salary Expense, $12,000; credit Salaries Payable, $12,000
(d) Debit Salary Expense, $18,000; credit Salaries Payable, $18,000
79. A balance sheet is designed to show:
(a) The financial position of an enterprise under accounting conventions
(b) What the enterprise could be sold for (c) The performance of the enterprise for the year
(d) What it would cost to set up a similar enterprise
80. Gross profit is the difference between
(a) Liabilities & assets (b) Purchase and sale
(c) Net sales and operating expenses (d) Net sales and cost of goods sold
81. Calculate the gross profit if; Sales Rs. 6,000; cost of sales Rs. 5,000; opening stock Rs. 1,000; purchases Rs.
4,000; wages Rs. 2,000 and office rent Rs. 1,000.
(a) Loss Rs. 2,500 (b) Loss Rs. 1,500 (c) Profit Rs. 2,500 (d) Profit Rs. 1,000
82. Marketable securities are primarily
(a) Short-term equity securities (b) Short-term debt instruments (c) Long-term equity securities
(d) Long-term debt instruments
83. In 2005 work in process inventories of Park Inc., totaled $20,000 on January 1 and $15,000 on December 31.
If total
manufacturing cost was 90% of cost of goods sold, how much was cost of goods sold?
(a) Cannot be determined from the information presented (b) 110% of total manufacturing cost
(c) ($20,000 - $15,000)/0.90 (d) ($20,000 - $15,000) + 110% of total manufacturing cost
84. The largest expense of most manufacturing firms is?
(a) Salaries Expense (b) Amortization Expense (c) Rent Expense (d) Cost of goods sold
85. Residual interest in the net asset of an entity that remain after deducting its liabilities is
(a) Owner Equity (b) Liabilities (c) Asset (d) Expense
86. Which of the following is an expense
(a) Purchasing operating equipment (b) Purchasing cleaning service
(c) Purchasing an investment of another company (d) Purchasing a computer for the accounting
87. All of following are Expenses except
(a) Wages (b) Rent Payable (c) Salaries (d) Carriage
88. Dealing between two persons including money or a valuable thing is called
(a) Economic activities (b) Personal activities (c) Social activities (d) None of these
89. Which of the following item of revenue nature?
(a) Dividends payable (b) Rent incur (c) Fee earned (d) Payment for building improvement
90. Which of the following is not an asset?
(a) Debtors (b) Buildings (c) Cash balance (d) Loan from Ali
91. Goodwill is an example of
(a) A current assets (b) Fixed asset (c) Tangible Assets
(d) Intangible
Assets
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GAT Subject Management Sciences Accounting MCQs (51-100)
92. Finance has been described as
(a) The lifebuoy of the business (b) The lifeboat of the business
(c) The lifeline of the business (d) The lifeblood of the business
93. The extended balance sheet equation, which is the basis of double-entry bookkeeping is
(a) Assets + Expenses = Liabilities + Income - Capital
(b) Assets - Expenses = Liabilities - Income - Capital
(c) Assets - Expenses = Liabilities + Income + Capital
(d) Assets +
Expense
s = Liabilities + Income + Capital
94. Find out the value of liabilities from the following of cash Rs. 50,600; account receivable Rs. 12,400; office
supplies
Rs. 1,350 and capital Rs. 50,000
(a) Rs. 15,850 (b) Rs. 14,350 (c) Rs. 5,500 (d) Rs. 26,300
95. Which of the following is correct?
(a) Profit does not alter equity (b) Profit reduces equity
(c) Equity can only come from profit (d) Profit increases equity
96. Which of the following statement/s are true?
(i) Accounting can be described as the recording, classifying and summarizing of transactions
(ii) End result of financial accounting is balance sheet only
(a) (i) Only (b) (ii) Only (c) Neither (i) nor (ii) (d) Both (i) & (ii)
97. Which of the following statements is incorrect?
(a) Assets – Liabilities = Capital (b) Liabilities + Assets = Capital
(c) Liabilities + Capital = Assets (d) Assets - Capital = Liabilities
98. Which of the following statement is true about purpose of accounting
(a) The purpose of accounting provide information to manager
(b) Accounting purpose gives quantitative information to economic decision makers
(c) Provision of base for decision making is purpose of accounting
(d) All of above statement are true regarding purpose of accounting
99. Which of the following statement is true?
(a) The directors of a company are liable for any losses of the company
(b) A sole trader business is owned by shareholders and operated by the proprietor
(c) Partners are liable for losses in a partnership in proportion to their profit share ratio
(d) A company is run by directors on behalf of its stockholders
100. XYZ (Pvt.) Ltd. provided the following information about its balance sheet
Cash $ 100
Accounts
receivable $ 500
Stockholders' equity 700 Outstanding bills 200
Bank loans 1,000 Prepaid insurance 350
Based on the information provided, how much are XYZ (Pvt.) Ltd.
liabilities?
(a) $ 900 (b) $ 1,050 (c) $ 1,200 (d) $ 1,700
MCQ TIME SERIES
MCQ 16.1
An orderly set of data arranged in accordance with their time of occurrence is called:
(a) Arithmetic series (b) Harmonic series (c) Geometric series (d) Time series
MCQ 16.2
A time series consists of:
(a) Short-term variations (b) Long-term variations(c) Irregular variations (d) All of the above
MCQ 16.3
The graph of time series is called:
(a) Histogram (b) Straight line (c) Historigram (d) Ogive
MCQ 16.4
Secular trend can be measured by:
(a) Two methods (b) Three methods (c) Four methods (d) Five methods
MCQ 16.5
The secular trend is measured by the method of semi-averages when:
(a) Time series based on yearly values (b) Trend is linear
(c) Time series consists of even number of values (d) None of them
MCQ 16.6
Increase in the number of patients in the hospital due to heat stroke is:
(a) Secular trend (b) Irregular variation (c) Seasonal variation (d) Cyclical variation
MCQ 16.7
The systematic components of time series which follow regular pattern of variations are called:
(a) Signal (b) Noise (c) Additive model (d) Multiplicative model
MCQ 16.8
The unsystematic sequence which follows irregular pattern of variations is called:
(a) Noise (b) Signal (c) Linear (d) Non-linear
MCQ 16.9
In time series seasonal variations can occur within a period of:
(a) Four years (b) Three years (c) One year (d) Nine years
MCQ 16.10
Wheat crops badly damaged on account of rains is:
(a) Cyclical movement (b) Random movement (c) Secular trend (d) Seasonal movement
MCQ 16.11
The method of moving average is used to find the:
(a) Secular trend (b) Seasonal variation (c) Cyclical variation (d) Irregular variation
MCQ 16.12
A complete cycle consists of a period of:
(a) Prosperity and depression (b) Prosperity and recovery
(c) Prosperity and recession (d) Recession and recovery
MCQ 16.13
A complete cycle passes through:
(a) Two stages (b) Three stages (c) Four stages (d) Difficult to tell
MCQ 16.14
Most frequency used mathematical model of a time series is:
(a) Additive model (b) Mixed model (c) Multiplicative model (d) Regression model
MCQ 16.15
A time series consists of:
(a) No mathematical model (b) One mathematical model
(c) Two mathematical models (d) Three mathematical models
MCQ 16.16
In a straight line equation Y = a + bX; a is the:
(a) X-intercept (b) Slope (c) Y-intercept (d) None of them
MCQ 16.17
In a straight line equation Y = a + bX; b is the:
(a) Y-intercept (b) Slope (c) X-intercept (d) Trend
MCQ 16.18
Value of b in the trend line Y = a + bX is:
(a) Always negative (b) Always positive(c) Always zero (d) Both negative and positive
MCQ 16.19
In semi averages method, we decide the data into:
(a) Two parts (b) Two equal parts (c) Three parts (d) Difficult to tell
MCQ 16.20
The sum of squares of residuals is denoted by:
MCQ 16.21
In fitting a straight line, the value of slope b remain unchanged with the change of:
(a) Scale (b) Origin (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ 16.22
If a straight line is fitted to the time series, then:
MCQ 16.23
Moving average method is used for measurement of trend when:
(a) Trend is linear (b) Trend is non linear (c) Trend is curvilinear (d) None of them
MCQ 16.24
When the trend is of exponential type, the moving averages are to be computed by using:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) Weighted mean
MCQ 16.25
The long term trend of a time series graph appears to be:
(a) Straight-line (b) Upward (c) Downward (d) Parabolic curve or third degree curve
MCQ 16.26
Indicate which of the following an example of seasonal variations is:
(d) Death rate decreased due to advance in science
(e) The sale of air condition increases during summer
(c) Recovery in business (d) Sudden causes by wars
MCQ 16.27
The most commonly used mathematical method for measuring the trend is:
(a) Moving average method (b) Semi average method
(c) Method of least squares (d) None of them
MCQ 16.28
A trend is the better fitted trend for which the sum of squares of residuals is:
(a) Maximum (b) Minimum (c) Positive (d) Negative
MCQ 16.29
Decomposition of time series is called:
(a) Historigram (b) Analysis of time series (c) Histogram (d) Detrending
MCQ 16.30
The fire in a factory is an example of:
(a) Secular trend (b) Seasonal movements (c) Cyclical variations (d) Irregular variations
MCQ 16.31
Increased demand of admission in the subject of computer in Pakistan is:
(a) Secular trend (b) Cyclical trend (c) Seasonal trend (d) Irregular trend
MCQ 16.32
Damages due to floods, droughts, strikes fires and political disturbances are:
(a) Trend (b) Seasonal (c) Cyclical (d) Irregular
MCQ 16.33
The general pattern of increase or decrease in economics or social phenomena is shown by:
(a) Seasonal trend (b) Cyclical trend (c) Secular trend (d) Irregular trend
MCQ 16.34
In moving average method, we cannot find the trend values of some:
(a) Middle periods (b) End periods (c) Starting periods (d) Between extreme periods
MCQ 16.35
The best fitting trend is one which the sum of squares of residuals is:
(a) Negative (b) Least (c) Zero (d) Maximum
MCQ 16.36
In fitting of a straight line, the value of slope remains unchanged by change of:
(a) Scale (b) Origin (c) Both origin and scale (d) None of them
MCQ 16.37
Depression in business is:
(a) Secular trend (b) Cyclical (c) Seasonal (d) Irregular
MCQ 16.38
In fitting of straight line = 0
(a) All the observed Y values lie on the line
(b) All the Y values are greater than corresponding values
(f) All the Y values are positive
(g) None of them
MCQ 16.39
Semi-averages method is used for measurement of trend when:
(a) Trend is linear (b) Observed data contains yearly values
(c) The given time series contains odd number of values(d) None of them
MCQ 16.40
Moving-averages:
(a) Give the trend in a straight line (b) Measure the seasonal variations
(c) Smooth-out the time series (d) None of them
MCQ 16.41
The rise and fall of a time series over periods longer than one year is called:
(a) Secular trend (b) Seasonal variation (c) Cyclical variation (d) Irregular variation
MCQ 16.42
A time series has:
(a) Two components (b) Three components (c) Four components (d) Five components
MCQ 16.43
The multiplicative time series model is:
(d) Y = a + bX + cX2
(a) Y = T + S + C + I (b) Y = TSCI (c) Y = a + bX
MCQ 16.44
The additive model of the time series is:
(d) Y = a + bX + cX2
(a) Y = T + S + C + I (b) Y = TSCI (c) Y = a + bX
MCQ 16.45
The difference between the actual value of the time series and the forecasted value is called:
(a) Residual (b) Sum of variation (c) Sum of squares of residual (d) All of the above
MCQ 16.46
A pattern that is repeated throughout a time series and has a recurrence period of at most one year is called:
(a) Cyclical variation (b) Irregular variation (c) Seasonal variation (d) Long term variation
MCQ 16.47
A business cycle has:
(a) One stage (b) Two stages (c) Three stages (d) Four stages
MCQ 16.48
When the production of a thing is maximum, this stage is called:
(a) Boom (b) Recovery (c) Recession (d) Depression
MCQ 16.49
When the production of a thing is minimum, this stage is called:
(a) Prosperity (b) Recession (c) Recovery (d) Depression
MCQ 16.50
When the production of thing is increasing towards prosperity, this stage is called as:
(a) Recession (b) Recovery (c) Boom (d) Depression
MCQ 16.51
When the production of thing is decreasing, this stage is called:
(a) Recession (b) Recovery (c) Prosperity (d) Depression
MCQ 16.52
The straight line is fitted to the time series when the movements in the time series are:
(a) Nonlinear (b) Linear (c) Irregular (d) Upward
MCQ 16.53
If an annual time series consisting of even number of years is coded, then each coded interval is equal to:
(a) Half year (b) One year (c) Both (a) and (b) (d) Two years
MCQ 16.54
A second degree parabola has:
(a) One constant (b) Two constant (c) Three constant (d) No constant
MCQ 16.55
The normal equations in fitting a second degree parabola are:
(a) Two (b) Three (c) Four (d) Five
MCQ 16.56
The second degree parabola is fitted to the time series when the variations are:
(a) Linear (b) Nonlinear (c) Random (d) Downward
MCQ 16.57
In fitting a second degree parabola, the value of c is not affected with the change of :
(a) Scale (b) Origin (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ 16.58
For odd number of year, formula to code the values of X by taking origin at centre is:
(a) X = year – average of years (b) X = year – first year
(c) X = year – last year (d) X = year – ½ average of years
MCQ 16.59
For even number of years when origin is in the centre and the unit of X being one year, then X can be coded as:
(a) X = (year – average of years)/2 (b) X = year – average of years
(c) X = year – 0.5 average of years (d) X = average of years – year
MCQ 16.60
For even number of years when origin is in the centre and the unit of X being half year, then X can be coded as:
(a) X = year – average of years (b) X = 2(year – average of years)
(c) X = (year – average year)/2 (d) X = year – ½ average of years
MCQ 16.61
In semi averages method, if the number of values is odd then we drop:
(a) First value (b) Last value (c) Middle value (d) Middle two values
MCQ 16.62
The trend values in freehand curve method are obtained by:
(a) Equation of straight line (b) Graph
(c) Second degree parabola (d) All of the above
MCQ 16.63
∑X = ∑X3 = 0, if origin is:
(a) At the end of time period (b) Any where
(c) At the middle of time period (d) At the beginning of time period
MCQ INDEX NUMBERS
MCQ No 5.1
An index number is called a simple index when it is computed from:
(a) Single variable (b) Bi-variable (c) Multiple variables (d) None of them
MCQ No 5.2
Index numbers are expressed in:
(a) Ratios (b) Squares (c) Percentages (d) Combinations
MCQ No 5.3
If all the values are of equal importance, the index numbers are called:
(a) Weighted (b) Unweighted (c) Composite (d) Value index
MCQ No 5.4
Index numbers can be used for:
(a) Forecasting (b) Fixed prices (c) Different prices (d) Constant prices
MCQ No 5.5
Index for base period is always taken as:
(a) 100 (b) One (c) 200 (d) Zero
MCQ No 5.6
When the prices of rice are to be compared, we compute:
(a) Volume index (b) Value index (c) Price index (d) Aggregative index
MCQ No 5.7
When index number is calculated for several variables, it is called:
(a) Composite index (b) Whole sale price index (c) Volume index (d) Simple index
MCQ No 5.8
How many types are used for the calculation of index numbers:
(a) 2 (b) 3 (c) 4 (d) 5
MCQ No 5.9
In chain base method, the base period is:
(a) Fixed (b) Not fixed (c) Constant (d) Zero
MCQ No 5.10
Which formula is used in chain indices?
MCQ No 5.11
Price relatives are a percentage ratio of current year price and:
(a) Base year quantity (b) Previous year quantity (c) Base year price (d) Current year quantity
MCQ No 5.12
Indices calculated by the chain base method are free from:
(a) Seasonal variations (b) Errors (c) Percentages (d) Ratios
MCQ No 5.13
The chain base indices are not suitable for:
(a) Long range comparisons (b) Short range comparisons (c) Percentages (d) Ratios
MCQ No 5.14
An index number that can serve many purposes is called:
(a) General purpose index (b) Special purpose index
(c) Cost of living index (d) None of them
MCQ No 5.15
Another name of consumer's price index number is:
(a) Whole-sale price index number (b) Cost of living index
(c) Sensitive (d) Composite
MCQ No 5.16
Consumer price index indicates:
(a) Rise (b) Fall (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ No 5.17
Purchasing power of money can be accessed through:
(a) Simple index (b) Fisher’s index(c) Consumer price index (d) Volume index
MCQ No 5.18
Cost of living at two different cities can be compared with the help of:
(a) Value index (b) Consumer price index (c) Volume index (d) Un-weighted index
MCQ No 5.19
Consumer price index numbers are obtained by:
(a) Laspeyre's formula (b) Fisher ideal formula
(c) Marshall Edgeworth formula (d) Paasche's formula
MCQ No 5.20
Laspeyre's index = 110, Paasche's index = 108, then Fisher's Ideal index is equal to:
(a) 110 (b) 108 (c) 100 (d) 109
MCQ No 5.21
Most commonly used index number is:
(a) Volume index number (b) Value index number
(c) Price index number (d) Simple index number
MCQ No 5.22
For consumer price index, price quotations are collected from:
(a) Fair price shops (b) Government depots (c) Retailers (d) Whole-sale dealers
MCQ No 5.23
Price relatives computed by chain base method are called:
(a) Price relatives (b) Chain indices (c) Link relatives (d) None of them
MCQ No 5.24
Consumer price index are obtained by:
(a) Paasche's formula (b) Fisher's ideal formula
(c) Marshall Edgeworth formula (d) Family budget method formula
MCQ No 5.25
The aggregative expenditure method and family budget method always give:
(a) Different results (b) Approximate results (c) Same results (d) None of them
MCQ No 5.26
In fixed base method, the base period should be:
(a) For away (b) Abnormal (c) Unreliable
(d) Normal
MCQ No 5.27
If all the values are not of equal importance the index number is called:
(a) Simple (b) Unweighted (c) Weighted (d) None
MCQ No 5.28
Which of the following formula satisfy the time reversal test?
MCQ No 5.29
When the price of a year is. divided by the price of a particular year we get:
(a) Simple relative (b) Link relative (c) (a) and (b) both (d) None of them
MCQ No 5.30
When the price of a divided by the price of the preceding year, we, get:
(a) Value index (b) Link relative (c) Simple relative (d) None of them
MCQ No 5.31
The most appropriate average in averaging the price relatives is:
(a) Median (b) Harmonic mean (c) Arithmetic mean (d) Geometric mean
MCQ No 5.32
In constructing index number geometric mean relatives are:
(a) Non-reversible (b) Reciprocal (c) Reversible (d) None of them
MCQ No 5.33
The general purchasing power of the currency of a country is determined by:
(a) Retail price index (b) Volume index (c) Composite index (d) Whole-sale price index
MCQ No 5.34
What type of index number can help the government to formulate its price policies and to take appropriate economic measures to control prices:
(a) Whole sale price index (b) Consumer's price (c) Quantity (d) None of them
MCQ No 5.35
The most suitable average in chain base method is:
(a) Arithmetic mean (b) Median (c) Mode (d) Geometric mean
MCQ No 5.36
Base year quantities weights are used in:
(a) Laspeyre's method (b) Paasche's method (c) Fisher's ideal method (d) Difficult to tell
MCQ No 5.37
Chain process is used to make comparisons of price index numbers in:
(a) Price relative (b) Link relative (c) Simple relative (d) None of the above
MCQ No 5.38
In the computation of consumer price index numbers, we use:
(a) Aggregate expenditure method (b) Family budget method
(c) Chain base method (d) Both (a) and (b)
MCQ No 5.39
The Federal Bureau of Statistics prepares:
(a) The wholesale price index (b) The consumer price index
(c) The sensitive price indicator (d) All of the above
MCQ No 5.40
While computing a weighted index, the current period quantities are used in the:
(a) Laspeyre's method· (b) Paasche's method
(c) Marshall Edgeworth method (d) Fisher's ideal method
MCQ No 5.41
The best method to measure the relative change in prices of commodities is:
(a) Quantity index number (b) Value index number
(c) Volume index number (d) Price index number
MCQ No 5.42
When the base year values are used as weights, the weighted average of relatives price index number is the same as the:
(a) Laspeyre's index (b) Paasche's index (c) Simple aggregative index (d) Quantity index
MCQ No 5.43
To measure the relative change in purchasing a specified basket of goods and services between two periods for a certain locality for fixed income group of people, we can use:
(a) Consumer price index (b) Paasche's price index (c) Cost of living index (d) Both (a) and (c)
MCQ No 5.44
Fisher's ideal index number is the geometric mean of the:
54. Laspeyre's and Marshall Edgeworth indices
55. Laspeyre's and Paasche's indices
56. Paasche's and Marshal Edgeworth indices (d) all of the above
57. All of the above
MCQ No 5.45
A number that measures a relative change in a single variable with respect to abase.is called:
(a) Good index number (b) Composite index number
(c) Simple index number (d) Quantity index number
MCQ No 5.46
A number that measures an average relative change in a group of related variables with respect to
A base is called:
(a) Simple index number (b) Composite index number
(c) Price index number (d) Quantity index number
MCQ No 5.47
An index number constructed to measure the relative change in the price of an item or a group of items is called:
(a) Quantity index number (b) Price index number (c) Volume index number (d) Difficult to tell
MCQ No 5.48
When relative change is measured for a fixed period, it is called:
(a) Chain base method (b) Fixed base method
(c) Simple aggregative method (d) Cost of living Index method
MCQ No 5.49
The ratio of a sum of prices ill current period to the sum of prices ill the base period, expressed as a percentage is called:
55. Simple price index number
56. Simple aggregative price index number
57. Weighted aggregative price index number
58. Quantity index number
MCQ No 5.50
An index that measures the average relative change in group of variables keeping in view the relative importance of the variables is called:
(a) Simple index number (b) Composite index number
(c) Weighted index number (d) Price index number
MCQ No 5.51
Link relative of current year is equal to:
MCQ No 5.52
Simple average of relatives is equal to:
MCQ No 5.53
Paasche's price index number is also called:
(a) Base year weighted (b) Current year weighted
(c) Simple aggregative index (d) Consumer price index
MCQ No 5.54
Laspeyre's price index number is also called:
(a) Base year weighted (b) Current year weighted
(c) Cost of living index (d) Simple aggregative index
MCQ No 5.55
Index number having downward bias is:
(a) Laspeyre's index (b) Paasche’s index
(c) Fisher's ideal index (d) Marshall Edgeworth index
MCQ No 5.56
Index number having upward bias is:
(a) Laspeyre's index (b) Paasche's index (c) Fisher's ideal index(d) Marshal Edgworth index
MCQ No 5.57
Marshall Edgeworth price index was proposed by:
(a) One English economist (b) Two English economist
(c) Three English economist (d) Many English economist
MCQ No 5.58
Index number calculated by Fisher's formula is ideal because it satisfy:
(a) Circular test (b) Factor reversal test (c) Time reversal test (d) All of the above
MCQ No 5.59
The test which is lot obeyed by any of the weighted index numbers unless the weights are constant:
(a) Circular test (b) Time reversal test (c) Factor reversal test (d) None of them
MCQ’S OF PRESENTATION OF DATA
MCQ No 2.1:
When data are classified according to a single characteristic, it is called:
(a) Quantitative classification (b) Qualitative classification
(c) Area classification (d) Simple classification
MCQ No 2.2:
Classification of data by attributes is called:
(a) Quantitative classification (b) Chronological classification
(c) Qualitative classification (d) Geographical classification
MCQ No 2.3:
Classification of data according to location or areas is called:
(a) Qualitative classification (b) Quantitative classification
(c) Geographical classification (d) Chronological classification
MCQ No 2.4:
Classification is applicable in case of:
(a) Normal characters (b) Quantitative characters (c) Qualitative characters (d) Both (b) and (c)
MCQ No 2.5:
In classification, the data are arranged according to:
(a) Similarities (b) Differences (c) Percentages (d) Ratios
MCQ No 2.6:
When data are arranged at regular interval of time, the classification is called:
(a) Qualitative (b) Quantitative (c) Chronological (d) Geographical
MCQ No 2.7:
When an attribute has more than three levels it is called:
(a) Manifold-division (b) Dichotomy (c) One-way (d) Bivariate
MCQ No 2.8:
The series
Country Pakistan India Britain Egypt Japan
Birth rate 45 40 10 35 10
is of the type:
(a) Discrete (b) Continuous (c) Individual (d) Time series
MCQ No 2.9:
The series
Country Pakistan India Britain Egypt Japan
Death rate 15 16 10 12 10
is of the type:
(a) Inclusive (b) Exclusive (c) Geographical (d) Time series
MCQ No 2.10
In an array, the data are:
(a) In ascending order (b) In descending order(c) Either (a) or (b) (d) Neither (a) or (b)
MCQ No 2.11
The number of tally sheet count for each value or a group is called:
(a) Class limit (b) Class width (c) Class boundary (d) Frequency
MCQ No 2.12
The frequency distribution according to individual variate values is called:
(a) Discrete frequency distribution (b) Cumulative frequency distribution
(c) Percentage frequency distribution (d) Continuous frequency distribution
MCQ No 2.13
A series arranged according to each and every item is known as:
(a) Discrete series (b) Continuous series (c) Individual series (d) Time series
MCQ No 2.14
A frequency distribution can be:
(a) Qualitative (b) Discrete (c) Continuous (d) Both (b) and (c)
MCQ No 2.15
The following frequency distribution:
X 5 15 38 47 68
f 2 4 9 3 1
Is classified
(a) Relative frequency distribution (b) Continuous distribution
(c) Percentage frequency distribution (d) Discrete distribution
MCQ No 2.16
Frequency distribution is often constructed with the help of:
(a) Entry table (b) Tally sheet(c) Both (a) and (b) (d) Neither (a) and (b)
MCQ No 2.17
The data given as 3, 5, 15, 35, 70, 84, 96 will be called as:
(a) Individual series (b) Discrete series (c) Continuous series (d) Time series
MCQ No 2.18
Frequency of a variable is always in:
(a) Fraction form (b) Percentage form (c) Less than form (d) Integer form
MCQ No 2.19
Data arranged in ascending or descending order of magnitude is called:
(a) Ungrouped data (b) Grouped data (c) Discrete frequency distribution (d) Arrayed data
MCQ No 2.20
The grouped data are called:
(a) Primary data (b) Secondary data (c) Raw data (d) Difficult to tell
MCQ No 2.21
A series of data with exclusive classes along with the corresponding frequencies is called:
(a) Discrete frequency distribution (b) Continuous frequency distribution
(c) Percentage frequency distribution (d) Cumulative frequency distribution
MCQ No 2.22
In an exclusive classification, the limits excluded are:
(a) Upper limits (b) Lower limits (c) Both lower and upper limits (d) Either lower or upper limits
MCQ No 2.23
The series
Weights(pounds) 15----20 20----25 25----30 30----35 35----40
No. of items 10 15 30 10 5
is categorized as:
(a) Continuous series (b) Discrete series (c) Time series (d) Geometric series
MCQ No 2.24
The series
Year 2007 2008 2009 2010 2011
Profit (000 Rs.) 7 10 16 18 22
will be called as:
(a) Time series (b) Discrete series (c) Continuous series (d) Individual series
MCQ No 2.25:
The suitable formula for computing the number of classes is:
(a) 3.322 logN (b) 0.322 logN (c) 1+3.322 logN (d) 1- 3.322 logN
MCQ No 2.26:
The number of classes in a frequency distribution is obtained by dividing the range of variable by the:
(a) Total frequency (b) Class interval (c) Mid-point (d) Relative frequency
MCQ No 2.27:
If the number of workers in a factory is 256, the number of classes will be:
(a) 8 (b) 9 (c) 10 (d) 12
MCQ No 2.28:
The largest and the smallest values of any given class of a frequency distribution are called:
(a) Class Intervals (b) Class marks (c) Class boundaries (d) Class limits
MCQ No 2.29
If there are no gaps between consecutive classes, the limits are called:
(a) Class limits (b) Class boundaries (c) Class intervals (d) Class marks
MCQ No 2.30
The extreme values used to describe the different classes in a frequency distribution are called:
(a) Class intervals (b) Class boundaries (c) Class limits (d) Cumulative frequency
MCQ No 2.31
If in a frequency table, either the lower limit of first class or the upper limit of last class is not a fixed
number, then classes are called:
(a) One-way classes (b) Two-way classes (c) Discrete classes (d) Open-end classes
MCQ No 2.32
The class boundaries can be taken when the nature of variable is:
(a) Discrete (b) Continuous (c) Both (a) and (b) (d) Qualitative
MCQ No 2.33
Class boundaries are also called:
(a) Mathematical limits (b) Arithmetic limits (c) Geometric limits (d) Qualitative limits
MCQ No 2.34
The average of lower and upper class limits is called:
(a) Class boundary (b) Class frequency (c) Class mark (d) Class limit
MCQ No 2.35
The lower and upper class limits are 20 and 30, the midpoints of the class is:
(a) 20 (b) 25 (c) 30 (d) 50
MCQ No 2.36
A frequency distribution that contains a class with limits of "10 and under 20" would have a midpoint:
(a) 10 (b) 14.9 (c) 15 (d) 20
MCQ No 2.37
If the number of workers in a factory is 128 and maximum and minimum hourly wages are 100 and 20 respectively. For the frequency distribution of hourly wages, the class interval is:
(a) 8 (b) 9 (c) 10 (d) 80
MCQ No 2.38
Width of interval h is equal to:
MCQ No 2.39
Length of interval is calculated as:
(a) The difference between upper limit and lower limit (b) The sum of upper limit and lower limit
(c) Half of the difference between upper limit and lower limit (d) Half of the sum of upper limit and lower limit
MCQ No 2.40
The class marks are given below:
10,12,14,16,18. The first class of the distribution is:
(a) 9----12 (b) 10.5----12.5 (c) 9----11 (d) 10----12
MCQ No 2.41
If the midpoints are 10, 15, 20, 25 and 30. The last class boundary of the distribution is:
(a) 25----30 (b) 27.5----32.5 (c) 20----35 (d) 30----35
MCQ No 2.42
The number of classes depends upon:
(a) Class marks (b) Frequency (c) Class interval (d) Class boundary
MCQ No 2.43
The class interval is the difference between:
(a) Two extreme values (b) Two successive frequencies
(c) Two successive upper limits (d) Two largest values
MCQ No 2.44
When the classes are 40----44, 45 ----49, 50----54, ... the class interval is:
(a) 4 (b)
(c) 100 (d) 5
MCQ No 2.45:
A grouping of data into mutually exclusive classes showing the number of observations in each class is called:
(a) Frequency polygon (b) Relative frequency
(c) Frequency distribution (d) Cumulative frequency
MCQ No 2.46:
The following frequency distribution
Classes Less than 2 Less than 4 Less than 6 Less than 8 Less than 10
Frequency 2 6 16 19 20
is classified as:
(a) Inclusive classification (b) Exclusive classification
(c) Discrete classification (d) Cross classification
MCQ No 2.47:
The following frequency distribution
Classes 10----20 20----30 30----40 40----50 50----60
Frequency 2 4 6 4 2
is classified as:
(a) Exclusive classification (b) Inclusive classification
(c) Geographical classification (d) Two-way classification
MCQ No 2.48:
The following frequency distribution
Classes 0----4 5----9 10----14 15----19 20----24
Frequency 2 3 7 5 3
is classified as:
(a) Multiple classification (b) Qualitative classification
(c) Inclusive classification (d) Exclusive classification
MCQ No 2.49:
The following frequency distribution
Classes More than 4 More than 4 More than 6 More than 8 More than 10
Frequency 2 6 16 19 20
is classified as:
(a) Geographical classification (b) Chronological classification
(c) Inclusive classification (d) Exclusive classification
MCQ No 2.50:
The class frequency divided by the total number of observations is called:
(a) Percentage frequency (b) Relative frequency
(c) Cumulative frequency (d) Bivariate frequency
MCQ No 2.51:
The relative frequency multiplied by 100 is called:
(a) Percentage frequency (b) Cumulative frequency
(c) Bivariate frequecy (d) Simple frequency
MCQ No 2.52
In a relative frequency distribution, the total of the relative frequencies is:
(a) 100 (b) One (c) ∑f (d) ∑ X
MCQ No 2.53:
In a percentage frequency distribution, the total of the percentage frequencies is always equal to:
(a) 1 (b) ∑f (c) 100% (d) ∑X
MCQ No 2.54
The cumulative frequency of first group in more than cumulative frequency distribution is always equal to:
(a) 1 (b) 100 (c) ∑f (d) ∑X
MCQ No 2.55
The cumulative frequency of last class in less than cumulative frequency distribution is always equal to:
(a) ∑f (b) ∑X (c) 1 (d) 100
MCQ No 2.56:
The following frequency distribution:
Classes Less than 10 Less than 20 Less than 30 Less than 40 Less than 50
Frequency 2 6 16 19 20
is classified as:
(a) Less than cumulative frequency distribution (b) More than cumulative frequency distribution
(c) Discrete frequency distribution (d) Cumulative percentage frequency distribution
MCQ No 2.57:
The following frequency distribution
Classes 50----55 55----60 60----65 65----70 70----75
Frequency 40 36 30 16 4
is classified as:
(a) Relative frequency distribution (b) Less than cumulative frequency distribution
(c) More than cumulative frequency distribution (d) Bivariate frequency distribution
MCQ No 2.58
A frequency distribution formed considering two variables at a time is called:
(a) Univariate frequency distribution (b) Bivariate frequency distribution
(c) Trivariate frequency distribution (d) Bimodal distribution
MCQ No 2.59
The sum of rows or sum of columns, of a bivariate, frequency distribution is equal to:
(a) ∑X (b) ∑fX (c) ∑(f+X) (d) ∑f
MCQ No 2.60:
The arrangement of data in rows and columns is called:
(a) Classification (b) Tabulation (c) Frequency distribution (d) Cumulative frequency distribution
MCQ No 2.61:
When the qualitative or quantitative raw data are classified according to one characteristic, the tabulation of different groups is called:
(a) Dichotomy (b) Manifold-division (c) Bivariate (d) One-way
MCQ No 2.62
A statistical table consists of at least:
(a) Two parts (b) Three parts (c) Four parts (d) Five parts
MCQ No 2.63
In a statistical table, prefatory note is shown:
(a) Below the body (b) Box head ` (c) Foot note (d) Below the title
MCQ No 2.64
A source note in a statistical table is given:
(a) At the end of a table (b) In the beginning of a table
(c) In the middle of a table (d) Below the body of a table
MCQ No 2.65
In a statistical table, column captions are called:
(a) Box head (b) Stub (c) Body (d) Title
MCQ No 2.66
In a statistical table, row captions are called:
(a) Box head (b) Stub (c) Body (d) Title
MCQ No 2.67:
The headings of the rows of a table are called:
(a) Prefatory notes (b) Titles (c) Stubs (d) Captions
MCQ No 2.68:
The headings of the columns of a table are called:
(a) Stubs (b) Captions (c) Footnotes (d) Source notes
MCQ No 2.69:
The budgets of two families can be compared by:
(a) Sub-divided rectangles (b) Pie diagram (c) Both (a) and (b) (d) Histogram
MCQ No 2.70:
Total angle of the pie-chart is:
(a) 45 (b) 90 (c) 180 (d) 360
MCQ No 2.71:
Diagram are another form of:
(a) Classification (b) Tabulation (c) Angle (d) Percentage
MCQ No 2.72
In pie diagram, the angle of a sub-sector is obtained as:
MCQ No 2.73:
A pie diagram is represented by a:
(a) Rectangle (b) Circle (c) Triangle (d) Square
MCQ No 2.74:
A sector diagram is also called:
(a) Bar diagram (b) Histogram (c) Historigram (d) Pie diagram
MCQ No 2.75:
Which of the following is not a one-dimensional diagram:
(a) Simple bar diagram (b) Multiple bar diagram
(c) Component bar diagram (d) Pie diagram
MCQ No 2.76:
Which of the following is a two-dimensional diagram:
(a) Sub-divided bar (b) Percentage component bar chart
(c) Sub-divided rectangles (d) Multiple bar diagram
MCQ No 2.77:
Pie diagram represents the components of a factor by:
(a) Circles (b) Sectors (c) Angles (d) Percentages
MCQ No 2.78:
The suitable diagram to represent the data relating to the monthly expenditure on different items by a family is:
(a) Historigram (b) Histogram (c) Multiple bar diagram (d) Pie diagram
MCQ No 2.79
A graph of time series or historical series is called:
(a) Histogram (b) Historigram (c) Frequency curve (d) Frequency polygon
MCQ No 2.80
The historigram is the graphical presentation of data which are classified:
(a) Geographically (b) Numerically (c) Qualitatively (d) According to time
MCQ No 2.81
Historigram and histogram are:
(a) Always same (b) Not same (c) Off and on same (d) Randomly same
MCQ No 2.82
A distribution in which the observations are concentrated at one end of the distribution is called a:
(a) Symmetric distribution (b) Normal distribution
(c) Skewed distribution (d) Uniform distribution
MCQ No 2.83
For graphic presentation of a frequency distribution, the paper to be used is:
(a) Carbon paper (b) Ordinary paper (c) Graph paper (d) Butter paper
MCQ No 2.84
Histogram can be drawn only for:
(a) Discrete frequency distribution (b) Continuous frequency distribution
(c) Cumulative frequency distribution (d) Relative frequency distribution
MCQ No 2.85
Histogram is a graph of:
(a) Frequency distribution (b) Time series (c) Qualitative data (d) Ogive
MCQ No 2.86
Histogram and frequency polygon are two graphical representations of:
(a) Frequency distribution (b) Class boundaries (c) Class intervals (d) Class marks
MCQ No 2.87
Frequency polygon can be drawn with the help of:
(a) Historigram (b) Histogram (c) Circle (d) Percentage
MCQ No 2.88
In a cumulative frequency polygon, the cumulative frequency of each class is plotted against:
(a) Mid-point (b) Lower class boundary (c) Upper class boundary (d) Upper class limit
MCQ No 2.89
The graph of the cumulative frequency distribution is called:
(a) Histogram (b) Frequency polygon (c) Pictogram (d) Ogive
MCQ No 2.90
When successive mid-points in a histogram are connected by straight lines, the graph is called a:
(a) Historigram (b) Ogive (c) Frequency curve (d) Frequency polygon
MCQ No 2.91
A frequency polygon is a closed figure which is:
(a) One sided (b) Two sided (c) Three sided (d) Many sided
MCQ No 2.92
Ogive curve can be occurred for the distribution of:
(a) Less than type (b) More than type (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ No 2.93
The word ogive is also used for:
(a) Frequency polygon (b) Cumulative frequency polygon
(c) Frequency curve (d) Histogram
MCQ No 2.94
Cumulative frequency polygon can be used for the calculation of:
(a) Mean (b) Median (c) Mode (d) Geometric mean
MCQ’S OF INTRODUCTION
MCQ No 1.1
The science of collecting, organizing, presenting, analyzing and interpreting data to assist in making more effective decisions is called:
(a) Statistic (b) Parameter (c) Population (d) Statistics
MCQ No 1.2
Methods of organizing, summarizing, and presenting data in an informative way are called:
(a) Descriptive statistics (b) Inferential statistics (c) Theoretical statistics (d) Applied statistics
MCQ No 1.3
The methods used to determine something about a population on the basis of a sample is called:
(a) Inferential statistics (b) Descriptive statistics (c) Applied statistics (d) Theoretical statistics
MCQ No 1.4
When the characteristic being studied is nonnumeric, it is called a:
(a) Quantitative variable (b) Qualitative variable (c) Discrete variable (d) Continuous variable
MCQ No 1.5
When the variable studied can be reported numerically, the variable is called a:
(a) Quantitative variable (b) Qualitative variable (c) Independent variable (d) Dependent variable
MCQ No 1.6
A specific characteristic of a population is called:
(a) Statistic (b) Parameter (c) Variable (d) Sample
MCQ No 1.7
A specific characteristic of a sample is called:
(a) Variable (b) Constant (c) Parameter (d) Statistic
MCQ No 1.8
A set of all units of interest in a study is called:
(a) Sample (b) Population (c) Parameter (d) Statistic
MCQ No 1.9
A part of the population selected for study is called a:
(a) Variable (b) Data (c) Sample (d) Parameter
MCQ No 1.10
Listing of the data in order of numerical magnitude is called:
(a) Raw data (b) Arrayed data (c) Discrete data (d) Continuous data
MCQ No 1.11
Listings of the data in the form in which these are collected are known as:
(a) Secondary data (b) Raw data (c) Arrayed data (d) Qualitative data
MCQ No 1.12
Data that are collected by any body for some specific purpose and use are called:
(a) Qualitative data (b) Primary data (c) Secondary data (d) Continuous data
MCQ No 1.13
The data which have under gone any treatment previously is called:
(a) Primary data (b) Secondary data (c) Symmetric data (d) Skewed data
MCQ No 1.14
The data obtained by conducting a survey is called:
(a) Primary data (b) Secondary data (c) Continuous data (d) Qualitative data
MCQ No 1.15
The data collected from published reports is known as:
(a) Discrete data (b) Arrayed data (c) Secondary data (d) Primary data
MCQ No 1.16
A survey in which information is collected from each and every individual of the population is
known as:
(a) Sample survey (b) Pilot survey (c) Biased survey (d) Census survey
MCQ No 1.17
Data used by an agency which originally collected them are:
(a) Primary data (b) Raw data (c) Secondary data (d) Grouped data
MCQ No 1.18
Registration is the source of:
(a) Primary data (b) Secondary data (c) Qualitative data (d) Continuous data
MCQ No 1.19
Data in the population census reports are:
(a) Ungrouped data (b) Secondary data (c) Primary data (d) Arrayed data
MCQ No 1.20
Issuing a national identity card is an example of:
(a) Sampling (b) Statistic (c) Census (d) Registration
MCQ No 1.21
A variable that assumes only some selected values in a range is called:
(a) Continuous variable (b) Quantitative variable (c) Discrete variable (d) Qualitative variable
MCQ No 1.22
A variable that assumes any value within a range is called:
(a) Discrete variable (b) Continuous variable (c) Independent variable (d) Dependent variable
MCQ No 1.23
A variable that provides the basis for estimation is called:
(a) Dependent variable (b) Independent variable (c) Continuous variable (d) Qualitative variable
MCQ No 1.24
The variable that is being predicted or estimated is called:
56. Dependent variable (b) Independent variable (c) Discrete variable (d) Continuous variable
MCQ No 1.25
Monthly rainfall in a city during the last ten years is an example of a:
(a) Discrete variable (b) Continuous variable (c) Qualitative variable (d) Independent variable
MCQ No 1.26:
The proportion of females in a sample of 50 accounts officers is an example of a:
(a) Parameter (b) Statistic (c) Array (d) Variable
MCQ No 1.27:
Number of family members in different families in a town is an example of a:
(a) Discrete variable (b) Continuous variable (c) Dependent variable (d) Qualitative variable
MCQ No 1.28
Colours of flowers are an example of:
(a) Quantitative variable (b) Qualitative variable (c) Skewed variable (d) Symmetric variable
MCQ No 1.29
If each measurement in a data set falls into one and only one of a set of categories,
the data set is called:
(a) Quantitative (b) Qualitative (c) Continuous (d) Constant
MCQ No 1.30
Any phenomenon which is not measurable is called:
(a) Variable (b) Constant (c) Parameter (d) Attribute
MCQ No 1.31
A constant can assume values:
(a) Zero (b) One (c) Fixed (d) Not fixed
MCQ No 1.32
A value which does not change from one individual to another individual is called:
(a) Variable (b) Statistic (c) Constant (d) Array
MCQ No 1.33
In the plural sense, statistics means:
(a) Numerical data (b) Methods (c) Population data (d) Sample data
MCQ No 1.34
In the singular sense, statistics means:
(a) Methods (b) Numerical data (c) Sample data (d) Population data
MCQ No 1.35
Weight of earth is:
(a) Discrete variable (b) Qualitative variable (c) Continuous variable (d) Difficult to tell
MCQ No 1.36
Weights of students in a class marks is a:
(a) Discrete data (b) Continuous data (c) Qualitative data (d) Constant data
MCQ No 1.37
Life of a T.V tube is a:
(a) Discrete variable (b) Continuous variable (c) Qualitative variable (d) Constant
MCQ No 1.38
Questionnaire method is used in collecting:
(a) Primary data (b) Secondary data (c) Published data. (d) True data
MCQ No 1.39
Census returns are:
(a) Primary data (b) Secondary data (c) Qualitative data (d) True data
MCQ No 1.40
Students divided into different groups according to their intelligence and gender will generate:
(a) Quantitative data (b) Qualitative data (c) Continuous data (d) Constant
MCQ No 1.41
Statistics are:
58. Aggregate of facts and figures (b) Always true (c) Always continuous (d) Always qualitative
MCQ No 1.42
Statistics results are:
(a) Randomly true (b) Always true (c) Not true (d) True on average
MCQ No 1.43 Statistics does not study:
(a) Constant (b) Statistic (c) Parameter (d) Individual
MCQ No 1.44
A statistical population may consist of:
(a) Finite number of values (b) Infinite number of values
(c) Either of (a) and (b) (d) None of (a) and (b)
MCQ No 1.45
The only continuous variable here is:
59. Rain fall on different days in a city (b) Number of customers entering a store on different days
(c) Number of flights landing on an airport on different days (d) None of them
MCQ No 1.46
Example of descriptive statistics is:
(a) 70% people in Pakistan live in rural areas. (b) 50% people are likely to vote in the national
election (c) 20% of the bulbs produced in a factory will be defective (d) Difficult to tell.
MCQ No 1.47
Example of inferential statistics is:
(a) Percentage of smokers in Pakistan (b) Percentage of skilled workers in a factory.
(c) Estimate of increase in prices in the next year (d) None of the above
MCQ No 1.48
Statistics are always:
(a) Exact (b) Estimated values (c) Constant (d) Population values
MCQ No 1.49
Statistics must be:
(a) Comparable (b) Not comparable (c) Discrete in nature (d) Qualitative in nature
MCQ No 1.50
Given 6 quantities, X1 through X6, the correct notation for adding quantities 3 through 6 is:
MCQ No 1.51
(a) 36 (b) 48 (c) 41 (d) 29
MCQ No 1.52
(a) Add all quantities from Y1 through Yn (b) Add all quantities from Y=2 through Yn
(c) Add all quantities from Y=2 through Y=n (d) Add all quantities from Y 2 through Y n
MCQ No 1.53
MCQ No 1.54
The figure 22.25 rounded to one decimal place is:
(a) 22.3 (b) 22.1 (c) 22.2 (d) 22
MCQ No 1.55
The figure 22.15 rounded to one decimal place is:
(a) 22.2 (b) 22.1 (c) 22 (d) 22.3
MCQ No 1.56
The figure 22.26 rounded to one decimal place is:
(a) 22.2 (b) 22.3 (c) 22.1 (d) 22
MCQ No 1.57
The figure 22.24 rounded to one decimal place is:
(a) 22.2 (b) 22.3 (c) 22.1 (d) 22
MCQ No 1.58
How many methods are used for the collection of data?
(a) 4 (b) 3 (c) 2 (d) 1
MCQ’S OF MEASURES OF CENTRAL TENDENCY
MCQ No 3.1
Any measure indicating the centre of a set of data, arranged in an increasing or decreasing order of magnitude, is called a measure of:
(a) Skewness (b) Symmetry (c) Central tendency (d) Dispersion
MCQ No 3.2
Scores that differ greatly from the measures of central tendency are called:
(a) Raw scores (b) The best scores (c) Extreme scores (d) Z-scores
MCQ No 3.3
The measure of central tendency listed below is:
(a) The raw score (b) The mean (c) The range (d) Standard deviation
MCQ No 3.4
The total of all the observations divided by the number of observations is called:
(a) Arithmetic mean (b) Geometric mean (c) Median (d) Harmonic mean
MCQ No 3.5
While computing the arithmetic mean of a frequency distribution, the each value of a class is considered equal to:
(a) Class mark(b) Lower limit (c) Upper limit (d) Lower class boundary
MCQ No 3.6
Change of origin and scale is used for calculation of the:
(a) Arithmetic mean (b) Geometric mean
(c) Weighted mean (d) Lower and upper quartiles
MCQ No 3.7
The sample mean is a:
(a) Parameter (b) Statistic (c) Variable (d) Constant
MCQ No 3.8
The population mean µ is called:
(a) Discrete variable (b) Continuous variable(c) Parameter (d) Sampling unit
MCQ No 3.9
The arithmetic mean is highly affected by:
(a) Moderate values (b) Extremely small values
(c) Odd values (d) Extremely large values
MCQ No 3.10
The sample mean is calculated by the formula:
MCQ No 3.11
If a constant value is added to every observation of data, then arithmetic mean is obtained by:
(a) Subtracting the constant (b) Adding the constant
(c) Multiplying the constant (d) Dividing the constant
MCQ No 3.12
Which of the following statements is always true?
(a) The mean has an effect on extreme scores (b) The median has an effect on extreme scores
60. Extreme scores have an effect on the mean (d) Extreme scores have an effect on the median
MCQ No 3.13
The elimination of extreme scores at the bottom of the set has the effect of:
(a) Lowering the mean (b) Raising the mean (c) No effect (d) None of the above
MCQ No 3.14
The elimination of extreme scores at the top of the set has the effect of:
(a) Lowering the mean (b) Raising the mean (c) No effect (d) Difficult to tell
MCQ No 3.15
The sum of deviations taken from mean is:
(a) Always equal to zero (b) Some times equal to zero
(c) Never equal to zero (d) Less than zero
MCQ No 3.16
If= 25, which of the following will be minimum:
(a) ∑(X – 27)2
(b) ∑(X – 25)2
(c) ∑(X – 22)2
(d) ∑(X + 25)2
MCQ No 3.17
The sum of the squares fo the deviations about mean is:
(a) Zero (b) Maximum (c) Minimum (d) All of the above
MCQ No 3.18
(a) 10 (b) 50 (c) 60 (d) 100
MCQ No 3.19
For a certain distribution, if ∑(X -20) = 25, ∑(X- 25) =0, and ∑(X-35) = -25, then is equal to:
(a) 20 (b) 25 (c) -25 (d) 35
MCQ No 3.20
The sum of the squares of the deviations of the values of a variable is least when the deviations are measured from:
(a) Harmonic mean (b) Geometric mean (c) Median (d) Arithmetic mean
MCQ No 3.21
If X1, X2, X3, ... Xn, be n observations having arithmetic mean and if Y =4X ± 2, then is
equal to:
(a) 4X (b) 4 (c) 4 ± 2 (d) 4 ± 2
MCQ No 3.22
If =100 and Y=2X – 200, then mean of Y values will be:
(a) 0 (b) 2 (c) 100 (d) 200
MCQ No 3.23
Step deviation method or coding method is used for computation of the:
(a) Arithmetic mean (b) Geometric mean (c) Weighted mean (d) Harmonic mean
MCQ No 3.24
If the arithmetic mean of 20 values is 10, then sum of these 20 values is:
(a) 10 (b) 20 (c) 200 (d) 20 + 10
MCQ No 3.25
Ten families have an average of 2 boys. How many boys do they have together?
(a) 2 (b) 10 (c) 12 (d) 20
MCQ No 3.26
If the arithmetic mean of the two numbers X1 and X2 is 5 if X1=3, then X2 is:
(a) 3 (b) 5 (c) 7 (d) 10
MCQ No 3.27
Given X1=20 and X2= -20. The arithmetic mean will be:
(a) Zero (b) Infinity (c) Impossible (d) Difficult to tell
MCQ No 3.28
The mean of 10 observations is 10. All the observations are increased by 10%. The mean of increased observations will be:
(a) 10 (b) 1.1 (c) 10.1 (d) 11
MCQ No 3.29
The frequency distribution of the hourly wage rate of 60 employees of a paper mill is as follows:
Wage rate (Rs.) 54----56 56----58 58----60 60----62 62----64
Number of workers 10 10 20 10 10
The mean wage rate is:
(a) Rs. 58.60 (b) Rs. 59.00 (c) Rs. 57.60 (d) Rs. 57.10
MCQ No 3.30
The sample mean of first n natural numbers is:
(a) n(n+ 1) / 2 (b) (n+ 1) / 2 (c) n/2 (d) (n+ 1) / 2
MCQ No 3.31
The mean of first 2n natural numbers is:
MCQ No 3.32
The sum of deviations is zero when deviations are taken from:
(a) Mean (b) Median (c) Mode (d) Geometric mean
MCQ No 3.33
When the values in a series are not of equal importance, we calculate the:
(a) Arithmetic mean (b) Geometric mean (c) Weighted mean (d) Mode
MCQ No 3.34
When all the values in a series occur the equal number of times, then it is not possible to calculate the:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) Weighted mean
MCQ No 3.35
The mean for a set of data obtained by assigning each data value a weight that reflects its relative
importance within the set, is called:
(a) Geometric mean (b) Harmonic mean (c) Weighted mean (d) Combined mean
MCQ No 3.36
If 1, 2, 3, ... , k be the arithmetic means of k distributions with respective frequencies n1, n2, n3, ... ,
nk, then the mean of the whole distribution c is given by:
(a) ∑ / ∑n (b) ∑n / ∑ (c) ∑n / ∑n (d) ∑(n+ ) / ∑n
MCQ No 3.37
The combined arithmetic mean is calculated by the formula:
MCQ No 3.38
The arithmetic mean of 10 items is 4 and the arithmetic mean of 5 items is 10. The combined arithmetic mean is:
(a) 4 (b) 5 (c) 6 (d) 90
MCQ No 3.39
The midpoint of the values after they have been ordered from the smallest to the largest or the largest to the smallest is called:
(a) Mean (b) Median (c) Lower quartile (d) Upper quartile
MCQ No 3.40
The first step in calculating the median of a discrete variable is to determine the:
(a) Cumulative frequencies (b) Relative weights
(c) Relative frequencies (d) Array
MCQ No 3.41
The suitable average for qualitative data is:
(a) Mean (b) Median (c) Mode (d) Geometric mean
MCQ No 3.42
Extreme scores will have the following effect on the median of an examination:
(a) They may have no effect on it (b) They may tend to raise it
(c) They may tend to lower it (d) None of the above
MCQ No 3.43
We must arrange the data before calculating:
(a) Mean (b) Median (c) Mode (d) Geometric mean
MCQ No 3.44
If the smallest observation in a data is decreased, the average which is not affected is:
(a) Mode (b) Median (c) Mean (d) Harmonic mean
MCQ No 3.45
If the data contains an extreme value, the suitable average is:
(a) Mean (b) Median (c) Weighted mean (d) Geometric mean
MCQ No 3.46
Sum of absolute deviations of the values is least when deviations are taken from:
(a) Mean (b) Mode (c) Median (d) Q3
MCQ No 3.47
The frequency distribution of the hourly wages rate of 100 employees of a paper mill is as follows:
Wage rate (Rs.) 54---- 56 56----58 58----60 60----62 62----64
Number of workers 20 20 20 20 20
The median wage rate is:
(a) Rs.55 (b) Rs.57 (c) Rs.56 (d) Rs.59
MCQ No 3.48
The values of the variate that divide a set of data into four equal parts after arranging the observations in ascending order of magnitude are called:
(a) Quartiles (b) Deciles (c) Percentiles (d) Difficult to tell
MCQ No 3.49
The lower and upper quartiles of a symmetrical distribution are 40 and 60 respectively. The value of median is:
(a) 40 (b) 50 (c) 60 (d) (60 – 40) / 2
MCQ No 3.50
If in a discrete series 75% values are less than 30, then:
(a) Q3 < 75 (b) Q3 < 30 (c) Q 3 = 30 (d) Q3 > 30
MCQ No 3.51
If in a discrete series 75% values are greater than 50, then:
(a) Q 1 = 50 (b) Q1 < 50 (c) Q1 > 50 (d) Q1 ≠ 50
MCQ No 3.52
If in a discrete series 25% values are greater than 75, then:
(a) Q1 > 75 (b) Q1 = 75 (c) Q 3 = 75 (d) Q3 > 75
MCQ No 3.53
If in a discrete series 40% values are less than 40, then :
(a) D4 ≠ 40 (b) D4 < 40 (c) D4 > 40 (d) D 4 = 40
MCQ No 3.54
If in a discrete series 15% values are greater than 40, then:
(a) P15 = 70 (b) P85 = 15 (c) P 85 = 70 (d) P70 = 70
MCQ No 3.55
The middle value of an ordered series is called:
(a) Median (b) 5th
decile (c) 50th
percentile (d) All the above
MCQ No 3.56
If in a discrete series 50% values are less than 50, then:
(a) Q2 = 50 (b) D5 = 50 (c) P50 = 50
(d) All of the above
MCQ No 3.57
The mode or model value of the distribution is that value of the variate for which frequency is:
(a) Minimum (b) Maximum (c) Odd number (d) Even number
MCQ No 3.58
Suitable average for averaging the shoe sizes for children is:
(a) Mean (b) Mode (c) Median (d) Geometric mean
MCQ No 3.59
Extreme scores on an examination have the following effect on the mode:
(a) They tend to raise it (b) they tend to lower it
(c) They have no effect on it (d) difficult to tell
MCQ No 3.60
A measurement that corresponds to largest frequency in a set of data is called:
(a) Mean (b) Median (c) Mode (d) Percentile
MCQ No 3.61
Which of the following average cannot be calculated for the observations 2, 2, 4, 4, 6, 6, 8, 8, 10, 10 ?
(a) Mean (b) Median (c) Mode (d) All of the above
MCQ No 3.62
Mode of the series 0, 0, 0, 2, 2, 3, 3, 8, 10 is:
(a) 0 (b) 2 (c) 3 (d) No mode
MCQ No 3.63
A distribution with two modes is called:
(a) Unimodel (b) Bimodal (c) Multimodal (d) Normal
MCQ No 3.64
The model letter of the word “STATISTICS” is:
(a) S (b) T (c) Both S and I (d) Both S and T
MCQ No 3.65
The mode for the following frequency distribution is:
Weekly sales of burner units 0 1 2 3 Over 3
Number of weeks 38 6 5 1 0
(a) 0 (b) 2 (c) 3 (d) No mode
MCQ No 3.66
Which of the following statements is always correct?
(a) Mean = Median = Mode (b) Arithmetic mean = Geometric mean = Harmonic mean
(c) Median = Q 2 = D 5 = P 50 (d) Mode = 2Median - 3Mean
MCQ No 3.67
In a moderately symmetrical series, the arithmetic mean, median and mode are related as:
(a) Mean - Mode = 3(Mean - Median) (b) Mean - Median = 2(Median - Mode)
(c) Median - Mode = (Mean - Median) / 2 (d) Mode – Median = 2Mean – 2Median
MCQ No 3.68
In a moderately skewed distribution, mean is equal to!
(a) (3Median - Mode) / 2 (b) (2Mean + Mode) / 3
(c) 3Median – 2Mean (d) 3Median - Mode
MCQ No 3.69
In a moderately asymmetrical distribution, the value of median is given by:
(a) 3Median + 2Mean (b) 2Mean + Mode
(c) (2Mean + Mode) / 3 (d) (3Median - Mode) / 2
MCQ No 3.70
For moderately skewed distribution, the value of mode is calculated as:
(a) 2Mean – 3Median (b) 3Median – 2Mean
(c) 2Mean + Mode (d) 3Median - Mode
MCQ No 3.71
In a moderately skewed distribution, Mean = 45 and Median = 30, then the value of mode is:
(a) 0 (b) 30 (c) 45 (d) 180
MCQ No 3.72
If for any frequency distribution, the median is 10 and the mode is 30, then approximate value of mean is equal to:
(a) 0 (b) 10 (c) 30 (d) 60
MCQ No 3.73
In a moderately asymmetrical distribution, the value of mean and mode is 15 and 18 respectively. The value of median will be:
(a) 48 (b) 18 (c) 16 (d) 15
MCQ No 3.74
(a) 2 (b) 3 (c) 1/2 (d) 1/3
MCQ No 3.75
Which of the following is correct in a positively skewed distribution?
(a) Mean = Median = Mode (b) Mean < Median < Mode
(c) Mean > Median > Mode (d) Mean + Median + Mode
MCQ No 3.76
If the values of mean, median and mode coincide in a unimodel distribution, then the distribution will be:
(a) Skewed to the left (b) Skewed to the right (c) Multimodal (d) Symmetrical
MCQ No 3.77
A curve that tails off to the right end is called:
(a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) Both (b) and (c)
MCQ No 3.78
The sum of the deviations taken from mean is:
(a) Always equal to zero (b) Some times equal to zero
(c) Never equal to zero (d) Less than zero
MCQ No 3.79
If a set of data has one mode and its value is less than mean, then the distribution is called:
(a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) Normal
MCQ No 3.80
Taking the relevant root of the product of all non-zero and positive values are called:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) Combined mean
MCQ No 3.81
The best average in percentage rates and ratios is:
(a) Arithmetic mean (b) Lower and upper quartiles
(c) Geometric mean (d) Harmonic mean
MCQ No 3.82
The suitable average for computing average percentage increase in population is:
(a) Geometric mean (b) Harmonic mean (c) Combined mean (d) Population mean
MCQ No 3.83
If 10% is added to each value of variable, the geometric mean of new variable is added by:
(a) 10 (b) 1/100 (c) 10% (d) 1.1
MCQ No 3.84
If each observation of a variable X is increased by 20%, then geometric mean is also increased by:
(a) 20 (b) 1/20 (c) 20% (d) 100%
MCQ No 3.85
If any value in a series is negative, then we cannot calculate the:
(a) Mean (d) Median (c) Geometric mean (d) Harmonic mean
MCQ No 3.86
Geometric mean for X1 andX2 is:
MCQ No 3.87
Geometric mean of 2, 4, 8 is:
(a) 6 (b) 4 (c) 14/3 (d) 8
MCQ No 3.88
Geometric mean is suitable when the values are given as:
(a) Proportions (b) Ratios (c) Percentage rates (d) All of the above
MCQ No 3.89
If the geometric of the two numbers X1 and X2 is 9 if X1=3, then X2 is equal to:
(a) 3 (b) 9 (c) 27 (d) 81
MCQ No 3.90
If the two observations are a = 2 and b = -2, then their geometric mean will be:
(a) Zero (b) Infinity (c) Impossible (d) Negative
MCQ No 3.91
Geometric mean of -4, -2 and 8 is:
(a) 4 (b) 0 (c) -2 (d) Impossible
MCQ No 3.92
The ratio among the number of items and the sum of reciprocals of items is called:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) Mode
MCQ No 3.93
Harmonic mean for X1 and X2 is:
MCQ No 3.94
The appropriate average for calculating the average speed of a journey is:
(a) Median (b) Arithmetic mean (c) Mode (d) Harmonic mean
MCQ No 3.95
Harmonic mean gives less weightage to:
(a) Small values (b) Large values (c) Positive values (d) Negative values
MCQ No 3.96
The harmonic mean of the values 5, 9, 11, 0, 17, 13 is:
(a) 9.5 (b) 6.2 (c) 0 (d) Impossible
MCQ No 3.97
If the harmonic mean of the two numbers X1 and X2 is 6.4 if X2=16, then X1 is:
(a) 4 (b) 10 (c)16 (d) 20
MCQ No 3.98
If a = 5 and b = -5, then their harmonic mean is:
(a) -5 (b) 5 (c) 0 (d) ∞
MCQ No 3.99
For an open-end frequency distribution, it is not possible to find:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) All of the above
MCQ No 3.100
If all the items in a variable are non zero and non negative then:
(a) A.M > G.M > H.M (b) G.M > A.M > H.M (c) H.M > G.M > A.M (d) A.M < G.M < H.M
MCQ No 3.101
The geometric mean of a set of positive numbers X1, X2, X3, ... , Xn is less than or equal to their arithmetic mean but is greater than or equal to their:
(a) Harmonic mean (b) Median (c) Mode (d) Lower and upper quartiles
MCQ No 3.102
Geometric mean and harmonic mean for the values 3, -11, 0, 63, -14, 100 are:
(a) 0 and 3 (b) 3 and -3 (c) 0 and 0 (d) Impossible
MCQ No 3.103
If the arithmetic mean and harmonic mean of two positive numbers are 4 and 16, then their geometric mean will be:
(a) 4 (b) 8 (c) 16 (d) 64
MCQ No 3.104
The arithmetic mean and geometric mean of two observations are 4 and 8 respectively, then harmonic mean of these two observations is:
(a) 4 (b) 8 (c) 16 (d) 32
MCQ No 3.105
The geometric mean and harmonic mean of two values are. 8 and 16 respectively, then arithmetic mean of values is:
(a) 4 (b) 16 (c) 24 (d) 128
MCQ No 3.106
Which pair of averages cannot be calculated when one of numbers in the series is zero?
(a) Geometric mean and Median (b) Harmonic mean and Mode
61. Simple mean and Weighted mean(d) Geometric mean and Harmonic mean
MCQ No 3.107
In a given data the average which has the least value is:
(a) Mean (b) Median (c) Harmonic mean (d) Geometric mean
MCQ No 3.108
If all the values in a series are same, then:
(a) A.M = G.M = H.M (b) A.M ≠ G.M ≠ H.M(c) A.M > G.M > H.M (d) A.M < G.M < H.M
MCQ No 3.109
The averages are affected by change of:
(a) Origin (b) Scale (c) Both (a) and (b) (d) None of the above
MCQ’s of Measures of Dispersion
MCQ No 4.1
The scatter in a series of values about the average is called:
(a) Central tendency (b) Dispersion (c) Skewness (d) Symmetry
MCQ No 4.2
The measurements of spread or scatter of the individual values around the central point is called:
(a) Measures of dispersion (b) Measures of central tendency
(c) Measures of skewness (d) Measures of kurtosis
MCQ No 4.3
The measures used to calculate the variation present among the observations in the unit of the variable is called:
(a) Relative measures of dispersion (b) Coefficient of skewness
(c) Absolute measures of dispersion (d) Coefficient of variation
MCQ No 4.4
The measures used to calculate the variation present among the observations relative to their average is called:
(a) Coefficient of kurtosis (b) Absolute measures of dispersion
(c) Quartile deviation (d) Relative measures of dispersion
MCQ No 4.5
The degree to which numerical data tend to spread about an average value called:
(a) Constant (b) Flatness (c) Variation (d) Skewness
MCQ No 4.6
The measures of dispersion can never be:
(a) Positive (b) Zero (c) Negative (d) Equal to 2
MCQ No 4.7
If all the scores on examination cluster around the mean, the dispersion is said to be:
(a) Small (b) Large (c) Normal (d) Symmetrical
MCQ No 4.8
If there are many extreme scores on all examination, the dispersion is:
(a) Large (b) Small (c) Normal (d) Symmetric
MCQ No 4.9
Given below the four sets of observations. Which set has the minimum variation?
(a) 46, 48, 50, 52, 54 (b) 30, 40, 50, 60, 70 (c) 40, 50, 60, 70, 80 (d) 48, 49, 50, 51, 52
MCQ No 4.10
Which of the following is an absolute measure of dispersion?
(a) Coefficient of variation (b) Coefficient of dispersion
(c) Standard deviation (d) Coefficient of skewness
MCQ No 4.11
The measure of dispersion which uses only two observations is called:
(a) Mean (b) Median (c) Range (d) Coefficient of variation
MCQ No 4.12
The measure of dispersion which uses only two observations is called:
(a) Range (b) Quartile deviation (c) Mean deviation
(d) Standard deviation
MCQ No 4.13
In quality control of manufactured items, the most common measure of dispersion is:
(a) Range (b) Average deviation (c) Standard deviation (d) Quartile deviation
MCQ No 4.14
The range of the scores 29, 3, 143, 27, 99 is:
(a) 140 (b) 143 (c) 146 (d) 70
MCQ No 4.15
If the observations of a variable X are, -4, -20, -30, -44 and -36, then the value of the range will be:
(a) -48 (b) 40 (c) -40 (d) 48
MCQ No 4.16
The range of the values -5, -8, -10, 0, 6, 10 is:
(a) 0 (b) 10 (c) -10 (d) 20
MCQ No 4.17
If Y = aX ± b, where a and b are any two numbers and a ≠ 0, then the range of Y values will be:
(a) Range(X) (b) a range(X) + b (c) a range(X) – b (d) |a| range(X)
MCQ No 4.18
If the maximum value in a series is 25 and its range is 15, the maximum value of the series is:
(a) 10 (b) 15 (c) 25 (d) 35
MCQ No 4.19
Half of the difference between upper and lower quartiles is called:
(a) Interquartile range (b) Quartile deviation (c) Mean deviation (d) Standard deviation
MCQ No 4.20
If Q3=20 and Q1=10, the coefficient of quartile deviation is:
(a) 3 (b) 1/3 (c) 2/3 (d) 1
MCQ No 4.21
Which measure of dispersion can be computed in case of open-end classes?
(a) Standard deviation (b) Range (c) Quartile deviation (d) Coefficient of variation
MCQ No 4.22
If Y = aX ± b, where a and b are any two constants and a ≠ 0, then the quartile deviation of Y values is
equal to:
(a) a Q.D(X) + b (b) |a| Q.D(X) (c) Q.D(X) – b (d) |b| Q.D(X)
MCQ No 4.23
The sum of absolute deviations is minimum if these deviations are taken from the:
(a) Mean (b) Mode (c) Median (d) Upper quartile
MCQ No 4.24
The mean deviation is minimum when deviations are taken from:
(a) Mean (b) Mode (c) Median (d) Zero
MCQ No 4.25
If Y = aX ± b, where a and b are any two numbers but a ≠ 0, then M.D(Y) is equal to:
(a) M.D(X) (b) M.D(X) ± b (c) |a| M.D(X) (d) M.D(Y) + M.D(X)
MCQ No 4.26
The mean deviation of the scores 12, 15, 18 is:
(a) 6 (b) 0 (c) 3 (d) 2
MCQ No 4.27
Mean deviation computed from a set of data is always:
(a) Negative (b) Equal to standard deviation
(c) More than standard deviation (d) Less than standard deviation
MCQ No 4.28
The average of squared deviations from mean is called:
(a) Mean deviation (b) Variance (c) Standard deviation (d) Coefficient of variation
MCQ No 4.29
The sum of squares of the deviations is minimum, when deviations are taken from:
(a) Mean (b) Mode (c) Median (d) Zero
MCQ No 4.30
Which of the following measures of dispersion is expressed in the same units as the units of observation?
(a) Variance (b) Standard deviation
(c) Coefficient of variation (d) Coefficient of standard deviation
MCQ No 4.31
Which measure of dispersion has a different unit other than the unit of measurement of values:
(a) Range (b) Standard deviation (c) Variance (d) Mean deviation
MCQ No 4.32
Which of the following is a unit free quantity:
(a) Range (b) Standard deviation (c) Coefficient of variation (d) Arithmetic mean
MCQ No 4.33
If the dispersion is small, the standard deviation is:
(a) Large (b) Zero (c) Small (d) Negative
MCQ No 4.34
The value of standard deviation changes by a change of:
(a) Origin (b) Scale (c) Algebraic signs (d) None
MCQ No 4.35
The standard deviation one distribution dividedly the mean of the distribution and expressing in
percentage is called:
(a) Coefficient of Standard deviation (b) Coefficient of skewness
(c) Coefficient of quartile deviation (d) Coefficient of variation
MCQ No 4.36
The positive square root of the mean of the squares of the cleviations of observations from their mean is
called:
(a) Variance (b) Range (c) Standard deviation (d) Coefficient of variation
MCQ No 4.37
The variance is zero only if all observations are the:
(a) Different (b) Square (c) Square root (d) Same
MCQ No 4.38
The standard deviation is independent of:
(a) Change of origin (b) Change of scale of measurement
(c) Change of origin and scale of measurement (d) Difficult to tell
MCQ No 4.39
If there are ten values each equal to 10, then standard deviation of these values is:
(a) 100 (b) 20 (c) 10 (d) 0
MCQ No 4.40
If X and Y are independent random variables, then S.D(X ± Y) is equal to:
(a) S.D(X) ± S.D(Y) (b) Var(X) ± Var(Y) (c) (d)
MCQ No 4.41
S.D(X) = 6 and S.D(Y) = 8. If X and Yare independent random variables, then S.D(X-Y) is:
(a) 2 (b) 10 (c) 14 (d) 100
MCQ No 4.42
For two independent variables X and Y if S.D(X) = 1 and S.D(Y) = 3, then Var(3X - Y) is equal to:
(a) 0 (b) 6 (c) 18 (b) 12
MCQ No 4.43
If Y = aX ± b, where a and b are any two constants and a ≠ 0, then Vat (Y) is equal to:
(a) a Var(X) (b) a Var(X) + b (c) a2 Var(X) – b (d) a
2 Var(X)
MCQ No 4.44
If Y = aX + b, where a and b are any two numbers but a ≠ 0, then S.D(Y) is equal to:
(a) S.D(X) (b) a S.D(X) (c) |a| S.D(X) (d) a S.D(X) + b
MCQ No 4.45
The ratio of the standard deviation to the arithmetic mean expressed as a percentage is called:
(a) Coefficient of standard deviation (b) Coefficient of skewness
(c) Coefficient of kurtosis (d) Coefficient of variation
MCQ No 4.46
Which of the following statements is correct?
62. The standard deviation of a constant is equal to unity
63. The sum of absolute deviations is minimum if these deviations are taken from the mean.
64. The second moment about origin equals variance
65. The variance is positive quantity and is expressed in square of the units of the observations
MCQ No 4.47
Which of the following statements is false?
64. The standard deviation is independent of change of origin
65. If the moment coefficient of kurtosis β2 = 3, the distribution is mesokurtic or normal.
66. If the frequency curve has the same shape on both sides of the centre line which divides the curve into two equal parts, is called a symmetrical distribution.
67. Variance of the sum or difference of any two variables is equal to the sum of their respective
variances
MCQ No 4.48
If Var(X) = 25, then
is equal to:
(a) 15/2 (b) 50 (c) 25 (d) 5
MCQ No 4.49
To compare the variation of two or more than two series, we use
(a) Combined standard deviation (b) Corrected standard deviation
(c) Coefficient of variation (d) Coefficient of skewness
MCQ No 4.50
The standard deviation of -5, -5, -5, -5, 5 is:
(a) -5 (b) +5 (c) 0 (d) -25
MCQ No 4.51
Standard deviation is always calculated from:
(a) Mean (b) Median (c) Mode (d) Lower quartile
MCQ No 4.52
The mean of an examination is 69, the median is 68, the mode is 67, and the standard deviation is 3.
The measures of variation for this examination is:
(a) 67 (b) 68 (c) 69 (d) 3
MCQ No 4.53
The variance of 19, 21, 23, 25 and 27 is 8. The variance of 14, 16, 18, 20 and 22 is:
(a) Greater than 8 (b) 8 (c) Less than 8 (d) 8 - 5 = 3
MCQ No 4.54
In a set of observations the variance is 50. All the observations are increased by 100%. The variance of the increased observations will become:
(a) 50 (b) 200 (c) 100 (d) No change
MCQ No 4.55
Three factories A, B, C have 100, 200 and 300 workers respectively. The mean of the wages is the same in the three factories. Which of the following statements is true?
65. There is greater variation in factory C.
66. Standard deviation in. factory A is the smallest.
67. Standard deviation in all the three factories are equal
68. None of the above
MCQ No 4.56
An automobile manufacturer obtains data concerning the sales of six of its deals in the last week of 1996. The
results indicate the standard deviation of their sales equals 6 autos. If this is so, the variance of their sales equals:
(a) (b) 6 (c) (d) 36
MCQ No 4.57
If standard deviation of the values 2, 4, 6, 8 is 2.236, then standard deviation of the values 4, 8,12, 16 is:
(a) 0 (b) 4.472 (c) 4.236 (d) 2.236
MCQ No 4.58
Var(X) = 4 and Var(Y) =9. If X and Y are independent random variable then Var(2X + Y) is:
(a) 13 (b) 17 (c) 25 (d) -1
MCQ No 4.59
If = Rs.20, S= Rs.10, then coefficient of variation is:
(a) 45% (b) 50% (c) 60% (d) 65%
MCQ No 4.60
Which of the following measures of dispersion is independent of the units employed?
(a) Coefficient of variation (b) Quartile deviation
(c) Standard deviation (d) Range
MCQ No 4.61
In sheppard’s correction µ2 is equal to:
MCQ No 4.62
The moments about mean are called:
(a) Raw moments (b) Central moments (c) Moments about origin (d) All of the above
MCQ No 4.63
The moments about origin are called:
(a) Moments about zero (b) Raw moments (c) Both (a) and (b) (d) Neither (a) nor (b)
MCQ No 4.64
All odd order moments about mean in a symmetrical distribution are:
(a) Positive (b) Negative (c) Zero (d) Three
MCQ No 4.65
The second moment about arithmetic mean is 16, the standard deviation will be:
(a) 16 (b) 4 (c) 2 (d) 0
MCQ No 4.66
The first and second moments about arbitrary constant are -2 and 13 respectively, The standard deviation will
be:
(a) -2 (b) 3 (c) 9 (d) 13
MCQ No 4.67
Moment ratios β1 and β2 are:
67. Independent of origin and scale of measurement
68. Expressed in original unit of the data
69. Unit less quantities
70. Both (a) and (c)
MCQ No 4.68
The first moment about X = 0 of a distribution is 12.08. The mean is:
(a) 10.80 (b) 10.08 (c) 12.08 (d) 12.88
MCQ No 4.69
First two moments about the value 2 of a variable are 1 and 16. The variance will be:
(a) 13 (b) 15 (c) 16 (d) Difficult to tell
MCQ No 4.70
The first three moments of a distribution about the mean are 1, 4 and 0. The distribution is:
(a) Symmetrical (b) Skewed to the left (c) Skewed to the right (d) Normal
MCQ No 4.71
If the third central is negative, the distribution will be:
(a) Symmetrical (b) Positively skewed (c) Negatively skewed (d) Normal
MCQ No 4.72
If the third moment about mean is zero, then the distribution is:
(a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) Mesokurtic
MCQ No 4.73
Departure from symmetry is called:
(a) Second moment (b) Kurtosis (c) Skewness (d) Variation
MCQ No 4.74
In a symmetrical distribution, the coefficient of skewness will be:
(a) 0 (b) Q1 (c) Q3 (d) 1
MCQ No 4.75
The lack of uniformity or symmetry is called:
(a) Skewness (b) Dispersion (c) Kurtosis (d) Standard deviation
MCQ No 4.76
For a positively skewed distribution, mean is always:
(a) Less than the median (b) Less than the mode
(c) Greater than the mode (d) Difficult to tell
MCQ No 4.77
For a symmetrical distribution:
(a) β1 > 0 (b) β1 < 0 (c) β 1 = 0 (d) β1 = 3
MCQ No 4.78
If mean=50, mode=40 and standard deviation=5, the distribution is:
(a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) Difficult to tell
MCQ No 4.79
If mean=25, median=30 and standard deviation=15, the distribution will be:
(a) Symmetrical (b) Positively skewed (c) Negatively skewed (d) Normal
MCQ No 4.80
If mean=20, median=16 and standard deviation=2, then coefficient of skewness is:
(a) 1 (b) 2 (c) 4 (d) -2
MCQ No 4.81
If mean=10, median=8 and standard deviation=6, then coefficient of skewness is:
(a) 1 (b) -1 (c) 2/6 (d) 2
MCQ No 4.82
If the sum of deviations from median is not zero, then a distribution will be:
(a) Symmetrical (b) Skewed (c) Normal (d) All of the above
MCQ No 4.83
In case of positively skewed distribution, the extreme values lie in the:
(a) Middle (b) Left tail (c) Right tail (d) Anywhere
MCQ No 4.84
Bowley's coefficient of skewness lies between:
(a) 0 and 1 (b) 1 and +1 (c) -1 and 0 (d) -2 and +2
MCQ No 4.85
In a symmetrical distribution, Q3 – Q1 = 20, median = 15. Q3 is equal to:
(a) 5 (b) 15 (c) 20 (d) 25
MCQ No 4.86
Which of the following is correct in a negatively skewed distribution?
68. The arithmetic mean is greater than the mode
69. The arithmetic mean is greater than the median
70. (Q3 – Median) = (Median – Q1)
71. (Q3 – Median) < (Median – Q1)
MCQ No 4.87
The lower and upper quartiles of a distribution are 80 and 120 respectively, while median is 100. The shape of the distribution is:
(a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) Normal
MCQ No 4.88
In a symmetrical distribution Q1 = 20 and median= 30. The value of Q3 is:
(a) 50 (b) 35 (c) 40 (d) 25
MCQ No 4.89
The degree of peaked ness or flatness of a unimodel distribution is called:
(a) Skewness (b) Symmetry (c) Dispersion (d) Kurtosis
MCQ No 4.90
For a leptokurtic distribution, the relation between second and fourth central moment is:
MCQ No 4.91
For a platydurtic distribution, the relation between and is:
MCQ No 4.92
For a mesokurtic distribution, the relation between fourth and second mean moment is:
MCQ No 4.93
The second and fourth moments about mean are 4 and 48 respectively, then the distribution is:
(a) Leptokurtic (b) Platykurtic (c) Mesokurtic or normal (d) Positively skewed
MCQ No 4.94
In a mesokurtic or normal distribution, µ4 = 243. The standard deviation is:
(a) 81 (b) 27 (c) 9 (d) 3
MCQ No 4.95
The value of β2 can be:
(a) Less than 3 (b) Greater than 3 (c) Equal to 3 (d) All of the above
MCQ No 4.96
In a normal (mesokurtic) distribution:
(a) β 1 =0 and β 2 =3 (b) β1=3 and β2=0 (c) β1=0 and β2>3 (d) β1=0 and β2<3
MCQ No 4.97
Any frequency distribution, the following empirical relation holds:
(a) Quartile deviation =
Standard deviation
(b) Mean deviation =
Standard deviation
(c) Standard deviation =
Mean deviation =
Quartile deviation
(d) All of the above
Student
Learning Descriptive Statistics
Centre Self-Assessment
In the following multiple choice questions, circle the correct answer.
(Then check your answers on the back)
70. Which of the following provides a measure of central location for the data?
a. standard deviation b. mean c. variance d. range
71. A numerical value used as a summary measure for a sample, such as sample mean, is known as a:
a. population parameter b. sample parameter c. sample statistic d. population mean
3. Given the formula for the Coefficient of Variation = ×100
The hourly wages of a sample of 130 system analysts are given:
What does the coefficient of variation equal?
a. 0.30% b. 30% c. 5.4%
mean = 60 range = 20
mode = 73 variance = 324
median = 74
d. 54%
72. The variance of a sample of 169 observations equals 576. The standard deviation of the sample equals:
a. 13 b. 24 c. 576 d. 28,461
74. The median of a sample will always equal the:
a. mode b. mean c. 50th percentile d. all of the above answers are correct
75. The median is a measure of:
a. relative dispersion b. absolute dispersion c. central location d. relative location
76. The 75th percentile is referred to as the:
a. first quartile b. second quartile c. third quartile d. fourth quartile
77. The difference between the largest and the smallest data values is called the:
a. variance b. interquartile range c. range d. coefficient of variation
78. The first quartile:
a. contains at least one third of the data elements. c. is the same as the 50th percentile.
b. is the same as the 25th percentile. d. is the same as the 75th percentile.
Descriptive Statistics 10/2013 @ SLC 1 of 2
Studentearning
LCentre
10. Which of the following is not a measure of central tendency?
a. mean b. median c. variance d. mode
11. Which of the following is a measure of dispersion?
a. percentiles b. quartiles c. interquartile range d. all of the above are measures of dispersion
12. The most frequently occurring value of a data set is called the:
a. range b. mode c. mean d. median
13. The interquartile range is:
a. the 50th percentile. c. the difference between the largest and smallest values.
b. another name for the variance. d. the difference between the third quartile and the first quartile.
14. When the data are skewed to the right, the measure of Skewness will be:
a. negative b. zero c. positive d. one
c .14 c .7
d .13 c .6
b .12 c .5
c .11 b .4
c .10 b .3
b .9 c .2
c .8 b .1
Answers:
STUDENT LEARNING CENTRE
REGISTRY BUILDING ANNEXE
TEL: 61-8-8201 2518
E-MAIL: [email protected]
INTERNET: http://www.flinders.edu.au/SLC
POSTAL: PO BOX 2100, ADELAIDE, SA 5001
Descriptive Statistics 10/2013 @ SLC 2 of 2
MCQ SAMPLING AND SAMPLING DISTRIBUTIONS
MCQ 11.1
Sample is a sub-set of:
(a) Population (b) Data (c) Set (d) Distribution
MCQ 11.2
Any population constant is called a:
(a) Statistic (b) Parameter (c) Estimate (d) Estimator
MCQ 11.3
List of all the units of the population is called:
(a) Random sampling (b) Bias (c) Sampling frame (d) Probability sampling
MCQ 11.4
Any calculation on the sampling data is called:
(a) Parameter (b) Static (c) (d) Error
MCQ 11.5
Any measure of the population is called:
(a) Finite (b) Parameter (c) Without replacement (d) Random
MCQ 11.6
If all the units of a population are surveyed, it is called:
(a) Random sample (b) Random sampling (c) Sampled population (d) Complete enumeration
MCQ 11.7
Probability distribution of a statistics is called:
(a) Sampling (b) Parameter (c) Data (d) Sampling distribution
MCQ 11.8
The difference between a statistic and the parameter is called:
(a) Probability (b) Sampling error (c) Random (d) Non-random
MCQ 11.9
The sum of the frequencies of the frequency distribution of a statistic is equal to:
(a) Sample size (b) Population size (c) Possible samples (d) Sum of X values
MCQ 11.10
Standard deviation of sampling distribution of a statistic is called:
(a) Serious error (b) Dispersion (c) Standard error (d) Difference
MCQ 11.11
If we obtain a point estimate for a population mean µ, the difference between and µ is:
(a) Standard error (b) Bias (c) Error of estimation (d) Difficult to tell
MCQ 11.12
A distribution formed by all possible values of a statistics is called
(a) Binomial distribution (b) Hypergeometric distribution
(c) Normal distribution (d) Sampling distribution
MCQ 11.13
In probability sampling, probability of selecting an item from the population is known and is:
(a) Equal to zero (b) Non zero (c) Equal to one (d) All of the above
MCQ 11.14
A population about which we want to get some information is called:
(a) Finite population (b) Infinite population (c) Sampling population (d) Target population
MCQ 11.15
The population consists of the results of repeated trials is named as:
(a) Finite population (b) Infinite population (c) Real population (d) Hypothetical population
MCQ 11.16
A population consisting of the items which are all present physically is called:
(a) Finite population (b) Infinite population (c) Real population (d) Hypothetical population
MCQ 11.17
Study of population is called:
(a) Parameter (b) Statistic (c) Error (d) Census
MCQ 11.18
For making voters list in Pakistan we need:
(a) Sampling error (b) Standard error (c) Census (d) Simple random sampling
MCQ 11.19
Sampling based upon equal probability is called:
(a) Probability sampling (b) Systematic sampling
(c) Simple random sampling (d) Stratified random sampling
MCQ 11.20
In sampling with replacement, an element can be chosen:
(a) Less than once (b) More than once (c) Only once (d) Difficult to tell
MCQ 11.21
Standard deviation of sample mean without replacement__________ standard deviation of sample mean
with replacement:
(a) Less than (b) More than (c) 2 times (d) Equal to
MCQ 11.22
In sampling without replacement, an element can be chosen:
(a) Less than once (b) More than once (c) Only once (d) Difficult to tell
MCQ 11.23
In sampling with replacement, the following is always true:
(a) n = N (b) n < N (c) n > N (d) All of the above
MCQ 11.24
Which of the following statement is true?
(a) Standard error is always one (b) Standard error is always zero
(c) Standard error is always negative (d) Standard error is always positive
MCQ 11.25
Random sampling is also called:
(a) Probability sampling (b) Non-probability sampling (c) Sampling error (d) Random error
MCQ 11.26
Non-random sampling is also called:
(a) Biased sampling (b) Non-probability sampling (c) Random sampling (d) Representative sample
MCQ 11.27
Sampling error can be reducing by:
(a) Non-probability sampling (b) Increasing the population
(c) Decreasing the sample size (d) Increasing the sample size
MCQ 11.28
The selection of cricket team for the world cup is called:
(a) Random sampling (b) Systematic sampling (c) Purposive sampling (d) Cluster sampling
MCQ 11.29
A complete list of all the sapling units is called:
(a) Sampling design (b) Sampling frame (c) Population frame (d) Cluster
MCQ 11.30
A Plan for obtaining a sample from a population is called:
(a) Population design (b) Sampling design (c) Sampling frame (d) Sampling distribution
MCQ 11.31
If a survey is conducted by a sampling design is called:
(a) Sample survey (b) Population survey (c) Systematic survey (d) None
MCQ 11.32
The difference between the expected value of a statistic and the value of the parameter being estimated is called a:
(a) Sampling error (b) Non-sampling error (c) Standard error (d) Bias
MCQ 11.33
The standard deviation of any sampling distribution is called:
(a) Standard error (b) Non-sampling error (c) Type- I error (d) Type II-error
MCQ 11.34
Which of the following statement is not true?
(a) S.E( ) ≠ 0 (b) S.E( ) ≠ 1 (c) S.E( ) = -2 (d) All of the above
MCQ 11.35
The standard error increases when sample size is:
(a) Increase (b) Decrease (c) Fixed (d) More than 30
MCQ 11.36
The mean of sampling distribution of mean is equal to:
(a) (b) µ (c) p (d) None of the above
MCQ 11.37
The mean of the sample means is exactly equal to the:
(a) Sample mean (b) Population mean (c) Weighted mean (d) Combined mean
MCQ 11.38
(a) E( ) (b) µ (c) Both (a) and (b) (d) None of the above
MCQ 11.39
A sample which is free from bias is called:
(a) Biased (b) Unbiased (c) Positively biased (d) Negatively biased
MCQ 11.40
If E( ) = µ then bias is:
(a) Positive (b) Negative (c) Zero (d) 100%
MCQ 11.41
(a) Unbiased sample variance (b) Population variance (c) Biased sample variance (d) All of the above
MCQ 11.42
(a) Unbiased sample variance (b) True variance(c) Biased sample variance (d) Variance of means
MCQ 11.43
The sampling procedure in which the population is first divided into homogenous groups and then a sample
is drawn from each group is called:
(a) Probability sampling
(c) Stratified random sampling
(b) Simple random sampling
(d) Sampling with replacement
MCQ 11.44
When a random sample is drawn from each stratum, it is known as:
(a) Simple random sampling (b) Stratified random sampling
(c) Probability sampling (d) Purposive sampling
MCQ 11.45
When the procedure of selecting the elements from the population is not based on probability is known as:
(a) Purposive sampling (b) Judgment sampling (c) Subjective sampling (d) All of the above
MCQ 11.46
Suppose a finite population has 6 items and 2 items are selected at random without replacement,
then all possible samples will be:
(a) 6 (b) 12 (c) 15 (d) 36
MCQ 11.47
Suppose a finite population contains 7 items and 3 items are selected at random without replacement, then all possible samples will be:
(a) 21 (b) 35 (c) 14 (d) 7
MCQ 11.48
A population contain N item and all possible sample of size n are selected without replacement. The possible number of sample will be:
(a) N (b) nN
(c) N
C n (d) Nn
MCQ 11.49
Suppose a finite population contains 4 items and 2 items are selected at random with replacement, then all possible samples will be:
(a) 6 (b) 16 (c) 8 (d) 4
MCQ 11.50
A population contains 2 items and 4 items are selected at random with replacement, then all possible samples will be:
(a) 16 (b) 8 (c) 4C2 (d) 4
MCQ 11.51
Suppose a population has N items and n items are selected with replacement. Number of all possible samples will be:
(a) Nn (b)
NCn (c) N (d) n
MCQ 11.52
In random sampling, the probability of selecting an item from the population is:
(a) Unknown (b) Known (c) Un-decided (d) One
MCQ 11.53
If N is the size of the population and n is size of the sample, then sampling fraction is:
(a) nN
(b) Nn (c) n/N (d)
NCn
MCQ 11.54
The finite population correction factor is:
MCQ 11.55
In sampling with replacement, the standard error of is equal to:
MCQ 11.56
MCQ 11.57
In sampling with replacement, the standard error of sample proportion is equal to:
MCQ 11.58
MCQ 11.59
If E( ) = 10 and µ = 10 then bias is equal to:
(a) 0 (b) 10 (c) 20 (d) Difficult to tell
MCQ 11.60
If= 10 and µ = 12 then sampling error is equal to:
(a) 22 (b) 10 (c) 12 (d) 2
MCQ 11.61
The standard deviation of the distribution of sample means is equal to:
MCQ 11.62
If n = 25, = 25 and = 25, then standard error of will be:
(a) 25 (b) 5 (c) 1 (d) 0
MCQ 11.63
If E(s2) = 3 and = 2 then bias will be:
(a) 5 (b) 3 (c) 2 (d) 1
MCQ 11.64
In sampling without replacement, the standard error of sampling distribution of sample proportion is equal to:
MCQ 11.65
When sampling is done without replacement is equal to:
MCQ 11.66
In case of sampling with replacement is equal to:
MCQ 11.67
The distribution of the mean of sample of size 4, taken from a population with a standard deviation, has a standard deviation of:
MCQ 11.68
In sampling with replacement is equal to:
MCQ 11.69
When sampling is done with or without replacement, E( is equal to:
MCQ 11.70
In case of sampling with replacement, Ε (S²) is equal to:
MCQ 11.71
In sampling without replacement, the expected value of is S² is equal to:
MCQ 11.72
When the sampling is done with replacement, then µS2 is equal to:
MCQ 11.73
In sampling without replacement, µs² is equal to:
MCQ 11.74
When sampling is done with or without replacement, is equal to:
MCQ 11.75
If X represent the number of units having the specified characteristic and n is the size of the sample, then population proportion p is equal to:
MCQ 11.76
If X represents the number of units having the specified characteristic and N is the size of the population, then population proportion p is equal to:
MCQ INTERVAL ESTIMATION
MCQ 12.1
Estimation is possible only in case of a:
(a) Parameter (b) Sample (c) Random sample (d) Population
MCQ 12.2
Estimation is of two types:
(a) One sided and two sided (b) Type I and type II
(c) Point estimation and interval estimation (d) Biased and unbiased
MCQ 12.3
A formula or rule used for estimating the parameter is called:
(a) Estimation (b) Estimate (c) Estimator (d) Interval estimate
MCQ 12.4
A value of an estimator is called:
(a) Estimation (b) Estimate (c) Variable (d) Constant
MCQ 12.5
Estimate and estimator are:
(a) Same (b) Different (c) Maximum (d) Minimum
MCQ 12.6
The type of estimates are:
(a) Point estimate (b) Interval estimates (c) Estimation of confidence region (d) All of the above
MCQ 12.7
Estimate is the observed value of an:
(a) Unbiased estimator (b) Estimator (c) Estimation (d) Interval estimation
MCQ 12.8
The process of using sample data to estimate the values of unknown population parameter is called:
(a) Estimate (b) Estimator (c) Estimation (d) Interval estimation
MCQ 12.9
The process of making estimates about the population parameter from a sample is called:
(a) Statistical independence (b) Statistical inference
(c) Statistical hypothesis (d) Statistical decision
MCQ 12.10
Statistical inference has two branches namely:
80. Level of confidence and degrees of freedom
81. Biased estimator and unbiased estimator
82. Point estimator and unbiased estimator
83. Estimation of parameter and testing of hypothesis
MCQ 12.11
A specific value calculated from sample is called:
(a) Estimator (b) Estimate (c) Estimation
(d) Bias
MCQ 12.12
An estimator is a random variable because it varies from:
(a) Population to sample (b) Population to population (c) Sample to sample (d) Sample to
population
MCQ 12.13
Statistic is an estimator and its calculated value is called:
(a) Biased estimate (b) Estimation (c) Estimator (d) Interval estimate
MCQ 12.14
The numerical value which we determine from the sample for population parameter is called:
(a) Estimation (b) Estimate (c) Estimator (d) Confidence coefficient
MCQ 12.15
A single value used to estimate a population values is called:
(a) Interval estimate (b) Point estimate (c) Level of confidence (d) Degrees of freedom
MCQ 12.16
An interval calculated from the sample data and it is likely to contain the value of parameter with some probability is called:
(a) Interval estimate (b) Point estimate (c) Confidence interval (d) Level of confidence
MCQ 12.17
A range of values within which the population parameter is expected to occur is called:
(a) Confidence coefficient (b) Confidence interval (c) Confidence limits (d) Level of significance
MCQ 12.18
Interval estimate is determined in terms of:
(a) Sampling error (b) Error of estimation (c) Confidence coefficient (d) Degrees of freedom
MCQ 12.19
The level of confidence is denoted by:
(a) α (b) β (c) 1 - α (d) 1 - β
MCQ 12.20
The end points of a confidence interval are called:
(a) Confidence coefficient (b) Confidence limits (c) Error of estimation (d) Parameters
MCQ 12.21
The probability associated with confidence interval is called:
(a) Level of confidence (b) Confidence coefficient (c) Both (a) and (b) (d) Confidence limits
MCQ 12.22
If the mean of the estimator is not equal to the population parameter, the estimator is said to be:
(a) Unbiased (b) Biased (c) Positively biased (d) Negatively biased
MCQ 12.23
The difference between the expected value of an estimator and the value of the corresponding parameter is called:
(a) Bias (b) Sampling error (c) Error of estimation (d) Standard error
MCQ 12.24
Bias of an estimator can be:
(a) Negative (b) Positive (c) Zero (d) Both (a) or (b)
MCQ 12.25
If is the estimator of the parameter , then is called unbiased if:
(a) (b) (c) (d)
MCQ 12.26
Estimates given in the form of confidence intervals are called:
(a) Point estimates (b) Interval estimates (c) Confidence limits (d) Degree of freedom
MCQ 12.27
Interval estimate is associated with:
(a) Probability (b) Non-probability (c) Range of values (d) Number of parameters
MCQ 12.28
The point estimator of population mean µ is:
(a) Sample mean (b) Sample variance (c) Sample standard deviation (d) Sample size
MCQ 12.29
(1 – α) is called:
(a) Critical value (b) Level of significance (c) Level of confidence (d) Interval estimate
MCQ 12.30
If (1 – α) is increased, the width of a confidence interval is:
(a) Decreased (b) Increased (c) Constant (d) Same
MCQ 12.31
By decreasing the sample size, the confidence interval becomes:
(a) Narrower (b) Wider (c) Fixed (d) All of the above
MCQ 12.32
Confidence interval become narrow by increasing the:
(a) Sample size (b) Population size (c) Level of confidence (d) Degrees of freedom
MCQ 12.33
By increasing the sample size, the precision of confidence interval is:
(a) Increased (b) Decreased (c) Same (d) Unchanged
MCQ 12.34
A function for estimating a parameter is called as:
(a) Estimator (b) Estimate (c) Estimation (d) Level of confidence
MCQ 12.35
A sample constant representing a population parameter is known as:
(a) Estimation (b) Estimator (c) Estimate (d) Bias
MCQ 12.36
The distance between an estimate and the estimated parameter is called:
(a) Sampling error (b) Error of estimation (c) Bias (d) Standard error
MCQ 12.37
Standard error is the standard deviation of the sampling distribution of an:
(a) Estimate (b) Estimation (c) Estimator (d) Error of estimation
MCQ 12.38
∑Xi / n for i=1,2,3,….,n is called:
(a) Estimation (b) Estimate (c) Estimator (d) Interval estimate
MCQ 12.39
A statistic is an unbiased estimator of a parameter if:
(a) E(statistic)=parameter (b) E(mean)=variance
(c) E(variance)=mean (d) E(sample mean)=proportion
MCQ 12.40
The following statistics are unbiased estimators:
(a) The sample mean
(b) The sample variance
(c) The sample proportion (d) All the above
MCQ 12.41
Which of the following is biased estimator?
MCQ 12.42
The number of values that are free to vary after we have placed certain restrictions upon the data is called:
(a) Degrees of freedom (b) Confidence coefficient (c) Number of parameters (d) Number of samples
MCQ 12.43
If the observations are paired and the number of pairs is n, then degree of freedom is equal to:
(a) n (b) n – 1 (c) n1 + n2 – 2 (d) n/2
MCQ 12.44
In t-distribution for two independent samples n1 = n2 = n, then the degrees of freedom is equal to:
(a) 2n – 1 (b) 2n – 2 (c) 2n + 1 (d) n – 1
MCQ 12.45
If the population standard deviation σ is unknown, and the sample size is small i.e.; n≤30, the confidence
interval for the population mean µ is based on
(a) The t-distribution (b) The normal distribution
(c) The binomial distribution (d) The hypergeometric distribution
MCQ 12.46
The shape of the t-distribution depends upon the:
(a) Sample size (b) Population size (c) Parameters (d) Degrees of freedom
MCQ 12.47
If the population standard deviation σ is known, the confidence interval for the population mean µ is based on:
(a) The Poisson distribution (b) The t-distribution
(c) The X2-distribution (d) The normal distribution
MCQ 12.48
A statistician calculates a 95% confidence interval for µ when σ is known. The confidence interval is Rs. 18000
to Rs. 22000, the amount of the sample mean is:
(a) Rs. 18000 (b) Rs. 20000 (c) Rs. 22000 (d) Rs. 40000
MCQ 12.49
A student calculates a 90% confidence interval for population mean when population standard deviation σ is
unknown and n = 9. The confidence interval is -24.3 cents to 64.3 cents, the sample mean is:
(a) 40 (b) -24.3 (c) 64.3 (d) 20
MCQ 12.50
A 95% confidence interval for population proportion p is 32.4% to 47.6%, the value of sample proportion is:
(a) 40% (b) 32.4% (c) 47.6% (d) 80%
MCQ 12.51
A confidence interval will be widened if:
2 The confidence level is increased and the sample size is reduced
3 The confidence level is increased and the sample size is increased
4 The confidence level is decreased and the sample size is increased
5 The confidence level is decreased and the sample size is decreased
MCQ 12.52
A 95% confidence interval for the mean of a population is such that:
81. It contains 95% of the values in the population
82. There is a 95% chance that it contains all the values in the population.
83. There is a 95% chance that it contains the mean of the population
84. There is a 95% chance that it contains the standard deviation of the population
MCQ 12.53
If the population standard deviation σ is doubles, the width of the confidence interval for the population mean µ (i.e.; the upper limit of the confidence interval – lower limit of the confidence interval) will be:
(a) Divided by 2 (b) Multiplied by (c) Doubled (d) Decrease
MCQ 12.54
If α = 0.10 and n = 15; equals:
(a) 1.761 (b) 1.753 (c) 1.771 (d) 2.145
MCQ 12.55
If n1 = 16, n2 = 9 and α = 0.01; equals:
(a) 2.787 (b) 2.807 (c) 2.797 (d) 3.767
MCQ 12.56
If 1 – α = 0.90, then value of is:
(a) 1.96 (b) 2.575 (c) 1.645 (d) 2.326
MCQ 12.57
If the population standard deviation σ is known and the sample size n is less than or equal to or more than 30, the confidence interval for the population mean µ is:
MCQ 12.58
If the population standard deviation σ is unknown and the sample size n is greater than 30, the confidence interval for the population mean µ is:
MCQ 12.59
If the population standard deviation σ is unknown and the sample size n is less than or equal to 30, the
confidence interval for the population mean is:
MCQ 12.60
If we have normal populations with known population standard deviations σ1 and σ2, the confidence interval
estimate for the difference between two population means is:
MCQ 12.61
If the population standard deviations σ1 and σ2 are unknown and sample sizes
n1, n2 ≥ 30, the100 (1 – α)% confidence interval for is:
MCQ 12.62
If the sample size is large, the confidence interval estimate of a population proportion p is:
MCQ 12.63
If n1, n2 ≤ 30, the confidence interval estimate for the difference of two population means when
population standard deviation σ1, σ2 are unknown but equal in case of pooled variates is:
MCQ 12.64
The confidence interval estimate for the difference of two population means in case of paired
observations small sample (n ≤ 30) is:
MCQ 12.65
If the sample size is large, the confidence interval estimate for the difference between two population
proportions p1 – p2 is:
MCQPROBABILITY
MCQ 6.1
When the possible outcomes of an experiment are equally likely to occur, this we apply:
(a) Relative probability (b) Subjective probability
(c) Conditional probability (d) Classical probability
MCQ 6.2
A number between 0 and 1 that is use to measure uncertainty is called:
(a) Random variable (b) Trial (c) Simple event (d) Probability
MCQ 6.3
Probability lies between:
(a) -1 and +1 (b) 0 and 1 (c) 0 and n (d) 0 and ∞
MCQ 6.4
Probability can be expressed as:
(a) Ration (b) Fraction (c) Percentage (d) All of the above
MCQ 6.5
The probability based on the concept of relative frequency is called:
(a) Empirical probability(b) Statistical probability (c) Both (a) and (b) (d) Neither (a) nor (b)
MCQ 6.6
The probability of an event cannot be:
(a) Equal to zero (b) Greater than zero (c) Equal to one (d) Less than zero
MCQ 6.7
A measure of the chance that an uncertain event will occur:
(a) An experiment (b) An event (c) A probability (d) A trial
MCQ 6.8
A graphical device used to list all possibilities of a sequence of outcomes in systematic way is called:
(a) Probability histogram (b) Venn diagram (c) Pie diagram (d) Tree diagram
MCQ 6.9
A random experiment contains:
(a) At least one outcome (b) At least two outcomes
(c) At most one outcome (d) At most two outcomes
MCQ 6.10
The probability of all possible outcomes of a random experiment is always equal to:
(a) One (b) Zero (c) Infinity (d) All of the above
MCQ 6.11
The outcome of tossing a coin is a:
(a) Mutually exclusive event (b) Compound event (c) Certain event(d) Simple event
MCQ 6.12
The result of no interest of an experiment is called:
(a) Constant (b) Event (c) Failure (d) Success
MCQ 6.13
A set of all possible outcomes of an experiment is called:
(a) Combination (b) Sample point (c) Sample space (d) Compound event
MCQ 6.14
The numbers of counting rules that are useful in determining the number of outcomes in an experiment are:
(a) One (d) Two (c) Three (d) Four
MCQ 6.15
The events having no experimental outcomes in common is called:
(a) Equally likely events (b) Exhaustive events
(c) Mutually exclusive events (d) Independent events
MCQ 6.16
A set of outcomes formed after some additional information is called:
(a) Sample space (b) Reduced sample space (c) Null set (d) Random experiment
MCQ 6.17
The probability associated with the reduced sample space is called:
(a) Conditional probability (b) Statistical probability
(c) Mathematical probability (d) Subjective probability
MCQ 6.18
An arrangement of objects without regard to order is called:
(a) Permutation (b) Combination (c) Random experiment (d) Sample point
MCQ 6.19
The number of permutations of a set of n things, taken r at a time with n 2 r given by:
MCQ 6.20
If three candidates are selected to attend a course from the ten candidates, the number of ways of selecting the candidates is an example of:
(a) Combination (b) Permutation (c) Reduced sample space (d) Both (a) and (b)
MCQ 6.21
When each outcome of a sample space is as likely to occur as any other, the outcomes are called:
(a) Exhaustive (b) Mutually exclusive (c) Equally likely (d) Not mutually exclusive
MCQ 6.22
If A is any event in S and its complement, then P( ) is equal to:
(a) 1 (b) 0 (c) 1- A (d) 1 - P(A)
MCQ 6.23
When certainty is involved in a situation, its probability is equal to:
(a) Zero (b) Between -l and + 1 (c) Between 0 and 1 (d) One
MCQ 6.24
Which of the following cannot be taken as probability of an event?
(a) 0 (b) 0.5 (c) 1 (d) -1
MCQ 6.25
If an event contains more than one sample points, it is called a:
(a) Simple event (b) Compound event (c) Impossible event (d) Certain event
MCQ 6.26
When the occurrence of one event has no effect on the probability of the occurrence of another event, the events are called:
(a) Independent (b) Dependent (c) Mutually exclusive (d) Equally likely
MCQ 6.27
A particular result of an experiment is called:
(a) Trial (b) Simple event (c) Compound event (d) Outcome
MCQ 6.28
A collection of one or more outcomes of an experiment is called:
(a) Event (b) Outcome (c) Sample point (d) None of the above
MCQ 6.29
A process that leads to the occurrence of one and only one of several possible observations is
called:
(a) Random experiment (c) Random variable(c) Experiment (d) Probability distribution
MCQ 6.30
Which statement is false?
82. The classical definition applies when there are n equally likely outcomes to an experiment
83. The empirical definition occurs when number of times an event happen is divided by the number of observations.
84. A subjective probability is based on whatever information is available
85. The general rule of addition is used when the events are mutually exclusive
MCQ 6.31
The term 'sample space' is used for:
(a) All possible outcomes (b) All possible coins (c) Probability (d) Sample
MCQ 6.32
The term 'event' is used for:
(a) Time (b) A sub-set of the sample space
(c) Probability (d) Total number of outcomes.
MCQ 6.33
The six faces of the die are called equally likely if the die is:
(a) Small (b) Fair (c) Six-faced (d) Round
MCQ 6.34
If we toss a coin and P(H) = 2P(T), then probability of head is equal to:
(a) 0 (b) 1/2 (c) 1/3 (d) 2/3
MCQ 6.35
A letter is chosen at random from the word "Statistics". The probability of getting a vowel is:
(a) 1/10 (b) 2/10 (c) 3/10 (d) 4/10
MCQ 6.36
An arrangement in which the order of the objects selected from a specific pool of objects is important called:
(a) Combination (b) Permutation (c) Factorial (d) Sample space
MCQ 6.37
Two books are to be selected at random without replacement out of four books. Then number of possible selections are:
(a) 4 (b) 2 (c) 6 (d) 3
MCQ 6.38
Three books of different colours are to be arranged in a book-shelf. The possible arrangements are:
(a) 3 (b) 1 (c) 6 (d) 2
MCQ 6.39
If a sample S = {1, 2}, the number of all possible sub-sets are:
(a) 2 (b) 1 (c) 3 (d) 4
MCQ 6.40
When a die and a coin are rolled together, all possible outcomes are:
(a) 6 (b) 2 (c) 36 (d) 12
MCQ 6.41
When two coins are tossed, the possible outcomes are:
(a) 2 (b) 4 (c) 1 (d) None of them
MCQ 6.42
If three coins are tossed, the possible outcomes are:
(a) 8 (b) 3 (c) 1 (d) None of them
MCQ 6.43
If n coins are tossed, the possible outcomes are:
2n
(a) n (b) 2 (c) (d) All of them
MCQ 6.44
If two dice are roiled, the possible outcomes are:
(a) 6 (b) 36 (c) 1 (d) Difficult to answer
MCQ 6.45
When n dice are rolled, the possible outcomes are:
(a) 6n
(b) 6 (c) 1 (d) 18
MCQ 6.46
When one card is selected at random from a pack of 52 playing cards, the possible selections are:
(a) 104 (b) 52 (c) 520 (d) 2704
MCQ 6.47
Two cards are selected at random with replacement from a pack of 52 playing cards. The possible outcomes are:
(a) 52 x 52 (b) 52 (c) 1326 (d) 2
MCQ 6.48
A bag contains 4 white and 2 black balls of the same size and weight, and two balls are selected at random without replacement, the possible selections are:
(a) 6 (b) 4 (c) 36 (d) 15
MCQ 6.49
Two balls are selected at random with replacement from a bag containing 3 red, 3 black and 2 green balls. The possible outcomes are:
(a) 8 (b) 64 (c) 16 (d) 2
MCQ 6.50
Five cards are selected at random from a pack of 52 cards with replacement. The possible combinations are:
(a) 52 (b) (52)5 (c) 52 x 52 (d) (5)
52
MCQ 6.51
The digits 1, 2, 3, 4, 5 are the roll numbers of 5 students. These roll numbers are written on the paper slips and two paper slips are selected at random without replacement. The possible combinations are:
(a) 5 (b) 2 (c) 25 (d) 10
MCQ 6.52
Which is the impossible event when a die is rolled:
(a) 2 or 3 (b) 5 or 6 (c) 1 (d) 0 or 7
MCQ 6.53
The probability of drawing any one spade card is:
(a) 1/13 (b) 1/4 (c) 4/13 (d) 1/52
MCQ 6.54
A balance die is rolled, the probability of getting an odd number is:
(a) 1/2 (b) 1/4 (c) 1/6 (d) 1/36
MCQ 6.55
Two fair dice are rolled. The probability of throwing an odd sum is:
(a) 1 (b) 1/2 (c) 1/6 (d) 1/36
MCQ 6.56
Given P(A) = 0.4, P(B) = 0.5 and P(A⋃B)=0.9,then:
(a) A and B are not mutually exclusive events (b) A and B are equally likely events
(c) A and Bare independent events (d) A and B are mutually exclusive events
MCQ 6.57
If P(B/A) = 0.50 and P(A⋂B) = 0.40, then p(A) will be equal to:
(a) 0.40 (b) 0.50 (c) 0.80 (d) 1
MCQ 6.58
Which of the following statements is incorrect:
⋃ ⋂ ⋃ ⋂
⋂ ⋃ ⋂ ⋃
MCQ 6.59
If P(A/B) = P(A) and P(B/A)=P(B), then A and B are:
(a) Mutually exclusive (b) Dependent (c) Equally likely (d) Independent
MCQ 6.60
A fair coin is tossed 100 times, the expected number of heads is:
(a) 100 (b) 50 (c) 30 (d) 60
MCQ 6.61
When two dice are rolled, the maximum total on the two faces of the dice will be:
(a) 6 (b) 36 (c) 12 (d) 2
MCQ 6.62
A random sample of 200 random digits is selected from a random number table. Expected number of zeros in the sample is:
(a) Zero (b) 10 (c) 20 (d) 5
MCQ 6.63
Six digits are selected at random again and again from a random number table and the even digits are counted each time. In most of the cases, the number of even digits will be:
(a) 2 (b) 3 (c) 4 (d) 6
MCQ 6.64
Two events A and B are called mutually exclusive if:
(a) A⋃B = Φ (b) A⋂B = Φ (c) A⋂B = S (d) A⋂B = 1
MCQ 6.65
If A and B are two mutually exclusive events, then:
(a) P(A⋂B) = 0 (b) P(A⋂B) = 1 (c) P(A⋃B) = 0 (d) P(A⋂B) = S
MCQ 6.66
When A and B are two non-empty and mutually exclusive events, then:
(a) P(A⋃B) = P(A).P(B) (b) P(A⋃B) = P(A) + P(B)
(c) P(A⋂B) = P(A).P(B) (d) P(A⋂B) = P(A)+P(B)
MCQ 6.67
The two events A and B are called not mutually exclusive events if:
(a) A⋂B = Φ (b) A⋂B ≠ Φ (c) A⋃B = Φ (d) A⋂B = zero
MCQ 6.68
If A and B are disjoint events then the statement which is always true is:
(a) P(A/B) = 0 (b) P(A⋃B) = 0 (c) P(A⋂B) = 1 (d) P(A) = P(B)
MCQ 6.69
The events A, B and C are called exhaustive events if:
(a) A⋃B⋃C = S (b) A⋂B⋂C = S (c) A⋃B⋃C = Φ (d) A⋃B⋃C = Zero
MCQ 6.70
If A and B are not-mutually exclusive events, then:
(a) P(A⋃B) + P(A⋂B) = P(A) + P(B) (b) P(A⋃B) = P(A) + P(B)
(c) P(A⋃B) = P(A).P(B) (d) P(A⋂B) = P(A) + P(B)
MCQ 6.71
If an event is the complement of the event A, then:
(a) A⋃ = S (b) A⋂ = S (c) A⋃ = Φ (d) P(A) = P( )
MCQ 6.72
If A1, A2, A3, ..., Ak are k mutually exclusive events, then:
83. P(A1⋃A2⋃A3⋃ ...⋃Ak ) = P(A1)+P(A2)+P(A3)+...+ P(Ak) 84. P(A1⋃A2⋃A3⋃ ...⋃Ak ) > 1
85. P(A1⋂A2⋂A3⋂ ...⋂Ak ) = 1
86. P(A1⋂A2⋂A3⋂ ...⋂Ak ) = P(A1⋃A2⋃A3⋃ ...⋃Ak )
MCQ 6.73
If A is an empty set and B is a non-empty set then:
(a) A⋂B = S (b) A⋂B = B (c) A⋃B = B
(d) P(A) = P(B)
MCQ 6.74
If A is an empty set and S is the sample space then:
(a) P(A⋃S) = P(S) (b) P(A⋃S) = P(Φ) (c) P(A⋂S) = 1 (d) P(A⋃S) = Zero
MCQ 6.75
If A and B are independent events, then:
(a) P(A⋃B) = P(A).P(B) (b) P(A⋂B) = P(A).P(B)
(c) P(A⋂B) = P(A)+P(B) (d) P(A) = P(B)
MCQ 6.76
If A and B are two independent events, then:
(a) P(A/B) = P(A) (b) P(A) = P(B) (c) P(A) < P(B) (d) P(A/B) = P(B/A)
MCQ 6.77
A and B are two independent events. Which one of these equations is false?
(a) P(A⋂ ) = P(A)P( ) (b) P( ⋂ ) = P( ⋂ )
(c) P( ⋂ ) = P( ) P( ) (d) P(A⋃B) = P(A)P(B)
MCQ 6.78
The conditional probability of the event A when event B has occurred is denoted by:
(a) P(A + B) (b) P(A - B) (c) P(A/B) (d) P( )
MCQ 6.79
If A and B are any two events, then P(A/B)+P( /B) is equal to:
(a) 0 (b) 0.25 (c) 0.5 (d) 1
MCQ 6.80
If A is an arbitrary event, then P(A/A) is equal to :
(a) Zero (b) One (c) Infinity (d) Less than one
MCQ 6.81
If A and B are any two events, then P( /B) is equal to:
(a) P(A/B) (b) 1- P(A/B) (c) 1+ P(A/B) (d) P( ⋂B)
MCQ 6.82
If A and B are any two events, then P(A⋃ ):
(a) 1+P(A⋂B) (b) 1-P(A⋃B) (c) 1- P(A⋂B) (d) P(A)+P(B)
MCQ 6.83
If A and B are any two events, then P( ⋂ ):
(a) 1-P(A⋃B) (b) 1-P(A⋂B) (c) 1-P( ⋂B) (d) 1-P(A⋂ )
MCQ 6.84
Which of the following statements is correct?
⋂ ⋃ ⋂ ⋃ ⋂ ⋃ ⋂ ⋂ ⋂ ⋃
⋂ ⋂ ⋃ ⋃ ⋂ ⋂ ⋃ ⋂
MCQ 6.85
If A and B are two mutually exclusive and exhaustive events and P(A)=2P(B), then P(B) is equal to:
(a) 1/2 (b) 2/3 (c) 1/3 (d) 1/4
MCQ 6.86
Two coins are tossed. Probability of getting head on the first coin is:
(a) 2/4 (a) 1 (c) Zero (d) 4
MCQ 6.87
A die and a coin are tossed together. Probability of getting head on the coin is:
(a) 6/12 (b) 6 (c) 12 (d) Zero
MCQ 6.88
A fair die is rolled. Probability of getting even face given that face is less than 5 is given by:
(a) 1/2 (b) 5 (c) 2 (d) 6
MCQ 6.89
Two coins are tossed. The probability that both faces will be matching given by:
(a) 1/4 (b) 1/2 (c) 1 (d) Zero
MCQ 6.90
Two coins are tossed. Probability of getting two heads given that there is at least one head is given by:
(a) 1/2 (b) 1/3 (c) 1/4 (d) 2/3
MCQ 6.91
A fair die is rolled. Probability of getting more than4 or less than 3 is given by:
(a) 2/3 (b) 1/3 (c) 1/2 (d) 4/3
MCQ 6.92
84. A fair die is rolled. Probability of getting even face or face more than 4 is: (a) 1/3 (b) 2/3 (c) 1/2 (d) 5/6
MCQ 6.93
Two dice are rolled. Probability of getting similar faces is:
(a) 5/36 (b) 1/6 (c) 1/3 (d) 1/2
MCQ 6.94
Two dice are rolled. Probability of getting total less than 4 or total more than 10 is given by:
(a) 10/36 (c) 4/36 (c) 1/36 (d) 14/36
MCQ 6.95
Two dice are rolled. Probability of getting a total of 4 given that both-faces are similar is:
(a) 5/36 (b) 1/36 (c) 4/36 (d) 1/6
MCQ 6.96
If A and B are two not-independent events, then the probability that both A and B will happen together is:
(a) P(A⋂B) = P(A)P(B/A) (b) P(A⋂B) = P(A)P(B)
(c) P(A⋂B) = P(A)+P(B) (d) P(A⋂B) = P(A)
MCQ 6.97
If A and B are two dependent events, then:
(a) P(A) P(B/A) = P(B)P(A/B) (b) P(A/B) = P(B/A)
(c) P(A/B) = P(A) (d) P(A) = P(B)
MCQ 6.98
Which one is true?
MCQ 6.99
(a) 1/5
(b) 2/5 (c) 3/5
(d) 1
MCQ 6.100
(a) 7/10
(b) 1/10 (c) 3/10 (d) 1
MCQ 6.101
Given P(A)=2/3, P(B)=3/8 and PAB)=1/4, then A and B are:
(a) Independent (b) Dependent (c) Mutually exclusive (d) Equally likely
MCQ’s of CH8 Random Variable and Probability Distributions of Saleem Akhtar for ICS1 Complete
MCQ 7.1
If in a table all possible values of a random variable are given their corresponding probabilities, then this table is called as:
(a) Probability density function (b) Distribution function
(c) Probability distribution (d) Continuous distribution
MCQ 7.2
A variable that can assume any possible value between two points is called:
(a) Discrete random variable (b) Continuous random variable
(c) Discrete sample space (d) Random variable
MCQ 7.3
A formula or equation used to represent the probability' distribution of a continuous random variable is called:
(a) Probability distribution (b) Distribution function
(c) Probability density function (d) Mathematical expectation
MCQ 7.4
If X is A discrete random variable and f(x) is the probability of X, then the expected value of this random variable is equal to:
(a) ∑f(x) (b) ∑[x+f(x)] (c) ∑f(x)+x (d) ∑xf(x)
MCQ 7.5
Given E(X) = 5 and E(Y) = -2, then E(X - Y) is:
(a) 3 (b) 5 (c) 7 (d) -2
MCQ 7.6
Given x = 2 and f(x) = 0.5. If y = 2x ,--3, then fey) is equal to:
(a) 1 (b) 0.5 (c) -2 (d) 0
MCQ 7.7
Which of the following is not possible in probability distribution?
(a) p(x) ≥ 0 (b) ∑p(x) = 1 (c) ∑xp(x) = 2 (d) p(x) = -0.5
MCQ 7.8
If C is a constant (non-random variable), then E(C) is:
(a) 0 (b) 1 (c) cf(c) (d) c
MCQ 7.9
A discrete probability distribution may be represented by:
(a) Table (b) Graph (c) Mathematical equation (d) All of the above
MCQ 7.10
A probability density function be represented by:
(a) Table (b) Graph (c) Mathematical equation (d) Both (b) and (c)
MCQ 7.11
If C is a constant in a continuous probability distribution, then p(x = C) is always equal to:
(a) Zero (b) One (c) Negative (d) Impossible
MCQ 7.12
E[X - E(X)] is equal to:
(a) E(X) (b) Var(X) (c) 0 (d) E(X) – X
MCQ 7.13
E[X - E(X)]2 is:
(b) E(X2)
(a) E(X) (c) Var(X) (d) S.D(X)
MCQ 7.14
If the random variable takes negative values, then the negative values will have:
(a) Positive probabilities (b) Negative probabilities (c) Constant probabilities (d) Difficult to tell
MCQ 7.15
If we have f(x) = 2x, 0≤x≤1, then f(x) is a:
(a) Probability distribution (b) Probability density function
(c) Distribution function (d) Continuous random variable
MCQ 7.16
Numbers selected by a random process and are equally distributed in a table are called:
(a) Attributes (b) Random variables (c) Random numbers(d) Quantitative variables
MCQ 7.17
(a) Zero (b) One (c) E(X) (d) f(x) + 1
MCQ 7.18
A listing of all the outcomes of an experiment and the probability associated with each
outcome is called:
(a) Probability distribution (b) Probability density function
(c) Attributes (d) Distribution function
MCQ 7.19
A quantity resulting from an experiment that, by chance, can assume different values is called:
(a) Random experiment (b) Random sample (c) Random variable (d) Random process
MCQ 7.20
Which one is not an example of random experiment?
85. A coin is tossed and the outcome is either a head or a tail
86. A six-sided die is rolled
87. Some number of persons will be admitted to a hospital emergency room during any hour.
88. All medical insurance claims received by a company in a given year.
MCQ 7.21
A set of numerical values assigned to a sample space is called:
(a) Random sample (b) Random variable (c) Random numbers (d) Random experiment
MCQ 7.22
A variable which can assume finite or countably infinite number of values is known as:
(a) Continuous (b) Discrete (c) Qualitative (d) None of them
MCQ 7.23
The probability function of a random variable is defined as:
x -1 -2 0 1 2
f(x) k 2k 3k 4k 5k
Then k is equal to:
(a) Zero (b) 1/4 (c) 1/15 (d) One
MCQ 7.24
If f(x) = 1/10, x = 10, then E(X) is:
(a) Zero (b) 6/8 (c) 1 (d) -1
MCQ 7.25
If Var(X) = 5 and Var(Y) = 10, then Var(2X + Y) is:
(a) 15 (b) 20 (c) 10 (d) 30
MCQ 7.26
A discrete probability function f(x) is always:
(a) Non-negative (b) Negative (c) One (d) Zero
MCQ 7.27
In a discrete probability distribution the sum of all the probabilities is always equal to:
(a) Zero (b) One (c) Minimum (d) Maximum
MCQ 7.28
The suitable graph of probability function of a discrete random variable is:
(a) Curve (b) Polygon (c) Probability histogram (d) Historigram
MCQ 7.29
The appropriate graph of probability density function is:
(a) Curve (b) Histogram (c) Polygon (d) None of them
MCQ 7.30
A variable which can assume all values in the· range of a random variable, is called:
(a) Finite (b) Infinite (c) Continuous (d) Discrete
MCQ 7.31
Total area under the curve of a continuous probability density function· is always equal to:
(a) Zero (b) One (c) -1 (d) None of them
MCQ 7.32
An expected value of a random variable is equal to its:
(a) Variance (b) Standard deviation (c) Mean (d) Covariance
MCQ 7.33
The probability of a continuous random variable "X" taking any particular value, k is always:
(a) Negative (b) Zero (c) One (d) None of them
MCQ 7.34
Area of a trapezoid is equal to:
MCQ 7.35
Var( 4X + 8) is:
(a) 12 Var(X) (b) 4 Var(X)+8 (c) 16 Var(X) (d) 16 Var(X)+8
MCQ 7.36
Var(X) is equal to:
(a) E(X2) (b) [E(X)]
2 (c) E (X
2) - [E(X)]
2 (d) E (X
2) + [E(X)]
2
MCQ 7.37
The expectation of the sum of two random variables X and Y is equal to:
(a) E(X) E(Y) (b) E(X) + E(Y) (c) E(X ± Y) (d) E(XY)
MCQ 7.38
The expectation of the product of two independent variables X and Y is equal to:
(a) E(X) E(Y) (b) E(X) ± E(Y) (c) E(X +Y) (d) None of the above
MCQ 7.39
When the random variable X and Y are independent, its co-variance is:
(a) One (b) Negative (c) Zero (d) Positive
MCQ 7.40
A discrete probability function f(x) is always non-negative and always lies between:
(a) 0 and ∞ (b) 0 and 1 (c) -1 and +1 (d) -∞ and +∞
MCQ 7.41
The probability density function p(x) cannot exceed:
(a) Zero (b) One (c) Mean (d) Infinity
MCQ 7.42
The height of persons in a country is a random variable of the type:
(a) Discrete random variable (b) Continuous random variable
(c) Both (a) and (b) (d) Neither (a) and (b)
MCQ 7.43
A random variable is also called:
(a) Chance variable (b) Stochastic variable (c) Constant (d) Both (a) and (b)
MCQ 7.44
The distribution function F(x) is equal to:
(a) P(X = x) (b) P( X ≤ x) (c) P( X ≥ x) (d) All of the above
MCQ of REGRESSION AND CORRELATION
MCQ 14.1
A process by which we estimate the value of dependent variable on the basis of one or more independent variables is called:
(a) Correlation (b) Regression (c) Residual (d) Slope
MCQ 14.2
The method of least squares dictates that we choose a regression line where the sum of the square of deviations of the points from the lie is:
(a) Maximum (b) Minimum (c) Zero (d)
Positive
MCQ 14.3
A relationship where the flow of the data points is best represented by a curve is called:
(a) Linear relationship (b) Nonlinear relationship (c) Linear positive (d) Linear negative
MCQ 14.4
All data points falling along a straight line is called:
(a) Linear relationship (b) Non linear relationship (c) Residual (d) Scatter diagram
MCQ 14.5
The value we would predict for the dependent variable when the independent variables are all equal to zero is called:
(a) Slope (b) Sum of residual (c) Intercept (d) Difficult to tell
MCQ 14.6
The predicted rate of response of the dependent variable to changes in the independent variable is called:
(a) Slope (b) Intercept (c) Error (d) Regression equation
MCQ 14.7
The slope of the regression line of Y on X is also called the:
(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
MCQ 14.8
In simple linear regression, the numbers of unknown constants are:
(a) One (b) Two (c) Three (d) Four
MCQ 14.9
In simple regression equation, the numbers of variables involved are:
(a) 0 (b) 1 (c) 2 (d) 3
MCQ 14.10
If the value of any regression coefficient is zero, then two variables are:
(a) Qualitative (b) Correlation (c) Dependent (d) Independent
MCQ 14.11
The straight line graph of the linear equation Y = a+ bX, slope will be upward if:
(a) b = 0 (b) b < 0 (c) b > 0 (b) b ≠ 0
MCQ 14.12
The straight line graph of the linear equation Y = a + bX, slope will be downward If:
(a) b > 0 (b) b < 0 (c) b = 0 (d) b ≠ 0
MCQ 14.13
The straight line graph of the linear equation Y = a + bX, slope is horizontal if:
(a) b = 0 (b) b ≠ 0 (c) b = 1 (d) a = b
MCQ 14.14
If regression line of = 5, then value of regression coefficient of Y on X is:
(a) 0 (b) 0.5 (c) 1 (d) 5
MCQ 14.15
If Y = 2 - 0.2X, then the value of Y intercept is equal to:
(a) -0.2 (b) 2 (c) 0.2X (d) All of the above
MCQ 14.16
If one regression coefficient is greater than one, then other will he:
(a) More than one (b) Equal to one (c) Less than one (d) Equal to minus one
MCQ 14.17
To determine the height of a person when his weight is given is:
(a) Correlation problem (b) Association problem (c) Regression problem (d) Qualitative problem
MCQ 14.18
The dependent variable is also called:
(a) Regression (b) Regressand (c) Continuous variable (d) Independent
MCQ 14.19
The dependent variable is also called:
(a) Regressand variable (b) Predictand variable (c) Explained variable (d) All of these
MCQ 14.20
The independent variable is also called:
(a) Regressor (b) Regressand (c) Predictand (d) Estimated
MCQ 14.21
In the regression equation Y = a+bX, the Y is called:
(a) Independent variable (b) Dependent variable (c) Continuous variable (d) None of the above
MCQ 14.22
In the regression equation X = a + bY, the X is called:
(a) Independent variable (b) Dependent variable (c) Qualitative variable (d) None of the above
MCQ 14.23
In the regression equation Y = a +bX, a is called:
(a) X-intercept (b) Y-intercept (c) Dependent variable (d) None of the above
MCQ 14.24
The regression equation always passes through:
(a) (X, Y) (b) (a, b) (c) ( , ) (d) ( , Y)
MCQ 14.25
The independent variable in a regression line is:
(a) Non-random variable (b) Random variable (c) Qualitative variable (d) None of the above
MCQ 14.26
The graph showing the paired points of (Xi, Yi) is called:
(a) Scatter diagram (b) Histogram (c) Historigram (d) Pie diagram
MCQ 14.27
The graph represents the relationship that is:
(a) Linear (b) Non linear (c) Curvilinear (d) No relation
MCQ 14.28
The graph represents the relationship that is.:
(a) Linear positive (b) Linear negative (c) Non-linear (d) Curvilinear
MCQ 14.29
When regression line passes through the origin, then:
86. Intercept is zero (b) Regression coefficient is zero (c) Correlation is zero (d) Association is zero
MCQ 14.30
When bXY is positive, then byx will be:
(a) Negative (b) Positive (c) Zero (d) One
MCQ 14.31
The correlation coefficient is the_______of two regression coefficients:
(a) Geometric mean (b) Arithmetic mean (c) Harmonic mean (d) Median
MCQ 14.32
When two regression coefficients bear same algebraic signs, then correlation coefficient is:
(a) Positive (b) Negative (c) According to two signs (d) Zero
MCQ 14.33
It is possible that two regression coefficients have:
(a) Opposite signs (b) Same signs (c) No sign (d) Difficult to tell
MCQ 14.34
Regression coefficient is independent of:
(a) Units of measurement (b) Scale and origin (c) Both (a) and (b) (d) None of them
MCQ 14.35
In the regression line Y = a+ bX:
(a) (b) (c) (d)
MCQ 14.36
In the regression line Y = a + bX, the following is always true:
(a) (b) (c) (d)
MCQ 14.37
The purpose of simple linear regression analysis is to:
87. Predict one variable from another variable
88. Replace points on a scatter diagram by a straight-line
89. Measure the degree to which two variables are linearly associated
90. Obtain the expected value of the independent random variable for a given value of the dependent variable
MCQ 14.38
The sum of the difference between the actual values of Y and its values obtained from the fitted regression line is always:
(a) Zero (b) Positive (c) Negative (d) Minimum
MCQ 14.39
If all the actual and estimated values of Y are same on the regression line, the sum of squares of error will be:
(a) Zero (b) Minimum (c) Maximum (d) Unknown
MCQ 14.40
(a) Residual (b) Difference between independent and dependent variables
(c) Difference between slope and intercept (d) Sum of residual
MCQ 14.41
A measure of the strength of the linear relationship that exists between two variables is called:
(a) Slope (b) Intercept (c) Correlation coefficient (d) Regression equation
MCQ 14.42
When the ratio of variations in the related variables is constant, it is called:
(a) Linear correlation (b) Nonlinear correlation (c) Positive correlation (d) Negative correlation
MCQ 14.43
If both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will be:
(a) Positive (b) Negative (c) Zero (d) One
MCQ 14.44
If the points on the scatter diagram indicate that as one variable increases the other variable tends to decrease the value of r will be:
(a) Perfect positive (b) Perfect negative (c) Negative (d) Zero
MCQ 14.45
If the points on the scatter diagram show no tendency either to increase together or decrease together the value of r will be close to:
(a) -1 (b) +1 (c) 0.5 (d) 0
MCQ 14.46
If one item is fixed and unchangeable and the other item varies, the correlation coefficient will be:
(a) Positive (b) Negative (c) Zero (d) Undecided
MCQ 14.47
In scatter diagram, if most of the points lie in the first and third quadrants, then coefficient of
correlation is:
(a) Negative (b) Positive (c) Zero (d) All of the above
MCQ 14.48
If the two series move in reverse directions and the variations in their values are always
proportionate, it is said to be:
(a) Negative correlation (b) Positive correlation
(c) Perfect negative correlation (d) Perfect positive correlation
MCQ 14.49
If both the series move in the same direction and the variations are in a fixed proportion, correlation between them is said to be:
(a) Perfect correlation (c) Linear correlation
(c) Nonlinear correlation (d) Perfect positive correlation
MCQ 14.50
The value of the coefficient of correlation r lies between:
(a) 0 and 1 (b) -1 and 0 (c) -1 and +1 (d) -0.5 and +0.5
MCQ 14.51
If X is measured in yours and Y is measured in minutes, then correlation coefficient has the unit:
(a) Hours (b) Minutes (c) Both (a) and (b) (d) No unit
MCQ 14.52
The range of regressioin coefficient is:
(a) -1 to +1 (b) 0 to 1 (c) -∞ to +∞ (d) 0 to ∞
MCQ 14.53
The signs of regression coefficients and correlation coefficient are always:
(a) Different (b) Same (c) Positive (d) Negative
MCQ 14.54
The arithmetic mean of the two regression coefficients is greater than or equal to:
(a) -1 (b) +1 (c) 0 (d) r
MCQ 14.55
In simple linear regression model Y = α + βX + ε where α and β are called:
(a) Estimates (b) Parameters (c) Random errors (d) Variables
MCQ 14.56
Negative regression coefficient indicates that the movement of the variables are in:
(a) Same direction (b) Opposite direction (c) Both (a) and (b) (d) Difficult to tell
MCQ 14.57
Positive regression coefficient indicates that the movement of the variables are in:
(a) Same direction (b) Opposite direction (c) Upward direction (d) Downward direction
MCQ 14.58
If the value of regression coefficient is zero, then the two variable are called:
(a) Independent (b) Dependent (c) Both (a) and (b) (d) Difficult to tell
MCQ 14.59
The term regression was used by:
(a) Newton (b) Pearson (c) Spearman (d) Galton
MCQ 14.60
In the regression equation Y = a + bX, b is called:
(a) Slope (b) Regression coefficient (c) Intercept (d) Both (a) and (b)
MCQ 14.61
When the two regression lines are parallel to each other, then their slopes are:
(a) Zero (b) Different (c) Same (d) Positive
MCQ 14.62
The measure of change in dependent variable corresponding to an unit change in independent
variable is called:
(a) Slope (b) Regression coefficient (c) Both (a) and (b) (d) Neither (a) and (b)
MCQ 14.63
In correlation problem both variables are:
(a) Equal (b) Unknown (c) Fixed (d) Random
MCQ 14.64
In the regression equation Y = a + bX, where a and b are called:
(a) Constants (b) Estimates (c) Parameters (d) Both (a) and (b)
MCQ 14.65
If byx = bxy = 1 and Sx = Sy, then r will be:
(a) 0 (b) -1 (c) 1 (d) Difficult to calculate
MCQ 14.66
The correlation coefficient between X and -X is:
(a) 0 (b) 0.5 (c) 1 (d) -1
MCQ 14.67
If byx = bxy = rxy, then:
(a) Sx ≠ Sy (b) S x = S y (c) Sx > Sy (d) Sx < Sy
MCQ 14.68
If rxy = 0.4, then r(2x, 2y) is equal to:
(a) 0.4 (b) 0.8 (c) 0 (d) 1
MCQ 14.69
rxy is equal to:
(a) 0 (b) -1 (c) 1 (d) 0.5
MCQ 14.70
If rxy = 0.75, then correlation coefficient between u = 1.5X and v = 2Y is:
(a) 0 (b) 0.75 (c) -0.75 (d) 1.5
MCQ 14.71
If byx = -2 and rxy= -1, then bxy is equal to:
(a) -1 (b) -2 (c) 0.5 (d) -0.5
MCQ 14.72
If byx = 1.6 and bxy = 0.4, then rxy will be:
(a) 0.4 (b) 0.64 (c) 0.8 (d) -0.8
MCQ 14.73
If byx = -0.8 and bxy = -0.2, then ryx is equal to:
(a) -0.2 (b) -0.4 (c) 0.4 (d) -0.8
MCQ 14.74
If = 6 – X, then r will be:
(a) 0 (b) 1 (c) -1 (d) Both (b) and (c)
MCQ 14.75
If = X + 10, then r equal to:
(a) 1 (b) -1 (c) 1/2 (d) Difficult to tell
MCQ 14.76
If Y = -10X and X = -0.1Y, then r is equal to:
(a) 0.1 (b) 1 (c) -1 (d) 10
MCQ 14.77
If the figure +1 signifies perfect positive correlation and the figure -1 signifies a perfect negative
correlation, then the figure 0 signifies:
(a) A perfect correlation (b) Uncorrelated variables
(c) Not significant (d) Weak correlation
MCQ 14.78
A perfect positive correlation is signified by:
(a) 0 (b) -1 (c) +1 (d) -1 to +1
MCQ 14.79
If a statistics professor tells his class: "All those who got 100 on the statistics test got 20 on the mathematics test, and all those that got 100 on the mathematics test got 20 on the statistics test", he is
saying that the correlation between the statistics test and the mathematics test is:
(a) Negative (b) Positive (c) Zero (d) Difficult to tell
MCQ 14.80
If is zero, the correlation is:
(a) Weak negative (b) High positive (c) High negative (d) None of the preceding
MCQ 14.81
If rxy = 1, then:
(a) byx = bxy (b) byx > bxy (c) byx < bxy (d) b yx . b xy = 1
MCQ 14.82
The relation between the regression coefficient byx and correlation coefficient r is:
MCQ 14.83
The relation between the regression coefficient bxy and correlation coefficient r is:
MCQ 14.84
If the sum of the product of the deviation of X and Y from their means is zero, the correlation coefficient between X and Y is:
(a) Zero (b) Maximum (c) Minimum (d) Undecided
MCQ 14.85
If the coefficient of correlation between the variables X and Y is r, the coefficient of correlation
between X2 and Y
2 is:
(a) -1 (b) 1 (c) r (d) r2
MCQ 14.86
If rxy = 0.75, then rxy will be:
(a) 0.25 (b) 0.50 (c) 0.75 (d) -0.75
MCQ 14.87
If , then byx is equal to:
(a) Positive (b) Negative (c) Zero (d) One
MCQ 14.88
If , then intercept a is equal to:
(a) 0 (b) 1 (c) -1 to +1 (d) 0 to 1
MCQ 14.89
:
(a) Less than zero (b) Greater than zero(c) Equal to zero (d) Not equal to zero
MCQ 14.90
When rxy < 0, then byx and bxy will be:
(a) Zero (b) Not equal to zero (c) Less than zero (d) Greater than zero
MCQ 14.91
When rxy > 0, then byx and bxy are both:
(a) 0 (b) < 0 (c) > 0 (d) < 1
MCQ 14.92
If rxy = 0, then:
(a) byx = 0 (b) bxy = 0 (c) Both (a) and (b) (d) byx ≠ bxy
MCQ 14.93
If bxy = 0.20 and rxy = 0.50, then byx is equal to:
(a) 0.20 (b) 0.25 (c) 0.50 (d) 1.25
MCQ 14.94
A regression model may be:
(a) Linear (b) Non-linear (c) Both (a) and (b) (d) Neither (a)
and (b)
MCQ 14.95
If r is negative, we know that:
(a)
(b)
(c)
(d)
CLAT Sample Question Paper: Legal GK / Constitution
of India
Category: Sample Question Paper
Tagged with: CLAT 2010 • Sample Papers
Legal GK and Constitution Sample Question Paper for CLAT Entrance Test.
Practice them along with the other sample question papers provided on CLAT Guru.
(f) Since the commencement of the Indian Constitution on 26 January, 1950, how many
persons have occupied the august office of the President of India?
(h) 9
(i) 10
(j) 11
(k) 12
58. Which of the following articles empowers the High Court to issue writs for
enforcement of Fundamental Rights?
59. Article 225
60. Article 226
61. Article 227
62. Article 228
57. The Government of India Act, 1935, envisaged the introduction of
59. dyarchical form of government
60. federal form of government
61. republican form of government
62. unitary form of government
61. Which of the following are Financial Committees of Parliament in India?
62. Public Accounts Committee
63. Estimates Committee
66. Committee on Public Undertakings
68. 1 and 3
69. 1 and 2
70. 2 and 3
71. 1, 2 and 3
72. Which of the following are the circumstances under which an elected
member of Parliament may be disqualified on the ground of defection?
69. If he voluntarily gives up his membership of a political party
70. If he votes or abstains from voting contrary to any direction issued by his political
party without prior permission of the political party
71. If he speaks against the political party
72. If he joins a political party other than the party on whose ticket he contested
and got elected.
71. The Union Territory of Mizoram was formed out of the north-eastern territories of
Assam in 1962. Full status of `State’ was conferred upon it in
72. 1980
73. 1982
74. 1985
75. 1987
71. The name of the laccadive, Minicoy and Amindivi Islands was changed to
Lakshadweep by an Act of Parliament in
72. 1970
73. 1971
74. 1972
75. 1973
73. The full status of `State’ was conferred upon the Union Territories of Manipur and
Tripura
in
1. 1970
75. 1971
76. 1972
77. 1973
76. At the end of 1995, the Union of India composed of
77. 25 States and 8 Union Territories
78. 25 States and 7 Union Territories
79. 26 States and 7 Union Territories
80. 26 States and 8 Union Territories
79. Which one of the following does not constitute the electoral college for electing the
President of India?
84. Elected members of the Legislative Council
85. Elected members of the Legislative Assembly of each state
86. Elected members of the Lok Sabha
87. Elected members of the Rajya Sabha
