Previous Year Paper

SSC CGL Tier-II (JSO) 2017 Official Paper ( Held On: 22 Feb 2018 ) (Previous Year Paper)

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Quantitative Aptitude (100 questions)

Question 1

For the mid values 30, 39, 48, 57 and 66 the second class of the distribution is ________.

  1. AOption (a)

    34 - 44

  2. BOption (b)

    34.5 - 43.5

  3. COption (c)

    33.5 - 44.5

  4. DOption (d)

    34 - 45

View answer & explanation

Correct answer

Answer: (b)B.

34.5 - 43.5

Why this answer is correct

Given

Mid values = 30, 39, 48, 57, 66

Formula used

Mid value of class interval = (L1 + L2)/2

L1 = Lower limit

L2 = Upper limit

Calculation

For Second class mid value would be (L1 + L2)/2

Here L1 and L2 are Lower value and upper value of class interval

 Mid point of 30 and 39 = (L1 + L2)/2

⇒ (30 + 39)/2 = 34.5

⇒ Mid point of 39 and 48

⇒ (39 + 48)/2 = 43.5

⇒ Lower limit (L1 = 34.5)

⇒ Upper limit (L2 = 43.5)

∴ The second class  of this distribution is 34.5 – 43.5

Shortcut Trick

By options

1 – 34 – 44

Class size  44 – 34 = 10

39 – 30  =9

So size gap does not match so option 1 is wrong

2 – 34.5 – 43.5

Class size = 43.5 – 34.5 = 9

The mid point gap

39 – 30 = 9, 48 – 39 = 9, 57 – 48 = 9, and 66 – 57 = 9

So option (2) match with Class Size so option (2) is correct

Question 2

The following frequency distribution is of which type?

ClassFrequency
0-54
0-107
0-1511
0-2016
0-2523
  1. AOption (a)

    Less than cumulative frequency ​

  2. BOption (b)

    More than cumulative frequency

  3. COption (c)

    discrete frequency distribution

  4. DOption (d)

    Individual series

View answer & explanation

Correct answer

Answer: (a)A.

Less than cumulative frequency ​

Why this answer is correct

Given

Frequency47111623
Class interval0 - 50 - 100 - 150 - 200 - 25

 

Calculation

Class intervalfrequencyCumulative frequency
0 – 544
0- 10711
0 - 151122
0 - 201638
0 - 25`2361

Here, total frequency = 23

Cumulative frequency = 61

∴ Frequency distribution is less than cumulative frequency

Important Points

 Cumulative frequency = it is the sum of the class and class below it in a frequency distribution

Question 3

For how many days were the number of road accident patients treated less than 4?

Number of road accidents patients treated by a hospital emergency ward for 120 days are given below:
Number of patients01234567
Days11162123201775
  1. AOption (a)

    71

  2. BOption (b)

    48

  3. COption (c)

    69

  4. DOption (d)

    46

View answer & explanation

Correct answer

Answer: (a)A.

71

Why this answer is correct

Calculation

No. off patientDays
011
116
221
323
420
517
67
75

 

the number of road accident patients treated less than 4 = 11 + 16 + 21 + 23 = 71

Question 4

In a pie chart depicting total expenses of a company for the year 2016, raw material had a central angle of 45o. If total expenses were Rs 504 Lakhs, what were the company's expense on raw materials (in Rs lakhs)?

  1. AOption (a)

    45

  2. BOption (b)

    112

  3. COption (c)

    63

  4. DOption (d)

    72

View answer & explanation

Correct answer

Answer: (c)C.

63

Why this answer is correct

Given

Total expenses = 504 lakhs

Raw material had a central angle 45° 

Concept used

In the pie chart overall angle is 360°

Calculation

The total expenses = 504 lakhs

⇒ 360° = 504 lakhs

⇒ 1° = 1.4 lakh

⇒ 45° = 63 lakh

∴ the company's expense on raw materials (in Rs lakhs) - is 63 lakhs

Question 5

How many per cent of employees get salaries less than Rs 30,000?

The following data shows the salaries of all the employees of a company.

Salary (In Rs.)0-10,00010,001-20,00020,001-30,00030,001-40,00040,001-50,000
Number of Employees235105504020
  1. AOption (a)

    0.756

  2. BOption (b)

    0.78 ​

  3. COption (c)

    0.867

  4. DOption (d)

    0.72

View answer & explanation

Correct answer

Answer: (c)C.

0.867

Why this answer is correct

Calculation

No of employees whose salary lies from 0 - 10,000 = 235

No of employees whose salary lies from 10,001 - 20,000 = 105

No of employees whose salary lies from 20,001 - 30,000 = 50

Total employs whose salary lies from 0 - 30,000 = 235 + 105 + 50

⇒ 390

Total number of employs = 450

⇒ 390/450 = 0.867

∴ 86.7% employees get salaries less than Rs 30,000

Question 6

What is the frequency density of the class 20 - 40?

Class0-1010-2020-4040-60
Frequency1216148
  1. AOption (a)

    1.4

  2. BOption (b)

    2.8

  3. COption (c)

    0.28

  4. DOption (d)

    0.7

View answer & explanation

Correct answer

Answer: (d)D.

0.7

Why this answer is correct

Given

Frequency density is actually the frequency per unit width.

Frequency of class interval 20 - 40 = 14

Formula used

\(Frequency ~density = \frac{Frequency}{(upper limit – lower limit) } \)

Calculation

⇒1440−20⇒\frac{14}{40-20}

⇒1420=0.7⇒\frac{14}{20}=0.7

∴ Frequency density is 0.7

Question 7

The following data shows runs scored by a batsmen in 72 matches that he played in his carrer.

952360263411392
103843290118627
5455114688387
98116863610310223
36832274281256
245174578388

How many times did he score less than 25 runs?

  1. AOption (a)

    9

  2. BOption (b)

    8

  3. COption (c)

    7

  4. DOption (d)

    11

View answer & explanation

Correct answer

Answer: (d)D.

11

Why this answer is correct

Calculation

We divide these runs into class interval and frequencies

Class intervalFrequency
0 -62
7 - 123
13 - 182
19 - 244
25 - 302
And so on ---And so on

 

∴ There are (2 + 3 + 2 + 4) = 11 times he scored less than 25

Question 8

Find the harmonic mean of 3, 6 and 10.

  1. AOption (a)

    6.33

  2. BOption (b)

    5

  3. COption (c)

    5.6

  4. DOption (d)

    4.5

View answer & explanation

Correct answer

Answer: (b)B.

5

Why this answer is correct

Given

Observations = 3, 6, 10

Formula used

Harmonic mean = n/Σ1/xi where i = 1, 2, 3, 4 ------

n = number of observation

x = observations value

Calculation

xi = 3, 6, 10

⇒ Σ1/xi  = 1/3 + 1/6 + 1/10 = 3/5

⇒ number of observation = 3

⇒ Harmonic mean  = 3/3/5 = (3 × 5)/3

∴ Harmonic mean = 5

Important Points

The harmonic mean it is defined as the reciprocal  of the arithmetic mean of the observations of a set

Harmonic mean = n/Σ1/xi where i = 1, 2, 3, 4 ------

n = number of observation

x = observations value

Geometric mean = it  is defined as the n-th root of the product of the n observations.

GM = n(√x1 × x2--------xn)

Question 9

Identify the two unknown frequencies in the following table if the mean of the values is 21.5?

ClassFrequency
0 - 10F1
10 – 2012
20 – 30F2
30 – 408
Total40
  1. AOption (a)

    5 and 15

  2. BOption (b)

    10 and 20

  3. COption (c)

    5 and 10

  4. DOption (d)

    10 and 15

View answer & explanation

Correct answer

Answer: (a)A.

5 and 15

Why this answer is correct

Given

Mean = 21.5

Total frequency = 40

Formula

Mean (x̅) = Σfx/Σf

Calculation

Class intervalFrequency (f)xfx
0 - 10f155f1
10 - 201215180
20 - 30f22525f2
30 - 40835280
total40Σfx = 460 + 5x + 25y

 

Hear x = (upper limit + lower limit)/2

⇒ Let f1 = x and f2 = y to solve question easily

⇒ x + 12 + y + 8 = 40

⇒ x + y = 20    ----(I)

⇒ Σfx = 460 + 5x + 25y

⇒ Mean = Σfx/Σf

⇒ 21.5 = (460 + 5x + 25y)/40

⇒ 460 + 5x + 25y = 860

⇒ 5x + 25y = 400

⇒ x + 5y = 80    ----(ii)

subtract equation (ii) by (i)

⇒ 4y = 60

⇒ y = 15

⇒ x = 20 - 15 = 5

∴ f1  = x = 5 and f2 = y  = 15

Important Points

X = mid value = (lower limit + upper limit)/2

This class interval is continuous class interval

Question 10

Calculate the median using the following data. 

Lower class boundary of the median class = 40 

Total frequency = 120 

Frequency of the median class = 35 

Less than cumulative frequency of the post median class = 37 

Class width = 20

  1. AOption (a)

    48.23

  2. BOption (b)

    49.14

  3. COption (c)

    54.23

  4. DOption (d)

    53.14

View answer & explanation

Correct answer

Answer: (d)D.

53.14

Why this answer is correct

Formula used

Median = L + (N/2 - C)/F × H  for group data

L = lower class limit of the median class = 40

N = total frequency = 120

C = cumulative frequency of the pre median class = 37

F = frequency of the median class = 35

H = width of median class = 20

Calculation

Median = 40 + (120/2 - 37)/35 × 20

⇒ 40 + 60 - 37)/35 × 20

⇒ 40 + 13.14

∴ Median = 53.14

Important Points

Median =  Median is that value of the variable which divides the whole distribution into two equal parts

Median for ungrouped data = (n + 1)th/2 when n = odd

[(n/2)th + (n/2 + 1)th]2 observation when n = even

Question 11

Use the following table to find the mean.

Age (in years)Number of students
0 – 580
5 – 10120
10 – 15160
15 – 2040
Total400
  1. AOption (a)

    8.5

  2. BOption (b)

    7.5

  3. COption (c)

    9.5

  4. DOption (d)

    10.5

View answer & explanation

Correct answer

Answer: (c)C.

9.5

Why this answer is correct

Calculation

AgeNumber of student = fxfx
0 - 5802.5200
5 - 101207.5900
10 - 1516012.52000
15 - 204017.5700
TotalN = 4003800

 

Mean = Σfx/N

⇒ Mean = 3800/400

∴ Mean is 9.5

Important Points

x =  (Upper limit + lower limit)/2 

It is continuous data

Question 12

Find the mode from the following table.

ClassFrequency
0 - 1015
10 – 2025
20 – 3030
30 – 4020
  1. AOption (a)

    22.44

  2. BOption (b)

    23.33

  3. COption (c)

    25.55

  4. DOption (d)

    26.66

View answer & explanation

Correct answer

Answer: (b)B.

23.33

Why this answer is correct

Formula used

Mode=L+[f1−f02f1−f0−f2]×i\rm Mode =L + \left [ \frac{f1 - f0}{2f1 - f0 - f2} \right ]× i

i = class interval or class size

f1 = frequency of modal class

fo = frequency of pre modal class

f2 = frequency of success modal class

L = lower limit of modal class

Calculation:

Here maximum frequency is 30 ,the class corresponding to this 20-30

So modal class is 20 - 30

Now lower limit of modal class (l) = 20

Frequency (f1) of modal class = 30

frequency (f0) of preceding the modal class  = 25

frequency (f2) of the class succeeding the modal class = 20

Class size = 10

⇒ Mode = 20 + ([30 - 25)/(2 × 30 - 25 - 20)] × 10

⇒ Mode = 20 + 10/3

∴  Mode is 23.33

Important Points

Another formula to calculate mode = 3 Median - 2 Mean

Question 13

Compute the standard deviation of the following numbers: 5, 6, 4 and 2

  1. AOption (a)

    1.7

  2. BOption (b)

    2.7

  3. COption (c)

    1.2

  4. DOption (d)

    2.2

View answer & explanation

Correct answer

Answer: (a)A.

1.7

Why this answer is correct

Given

Number = 5, 6, 4, and 2

Formula used

σ = √[x – x̅)2/n]

x̅ = (x1 + x2 + x3 + x4)/4

σ = Standard deviation

x̅ = Mean

Calculation

Mean = x̅ = (5 + 6 + 4 + 2)/4 = 4.25

xx – x̅
⇒ (x – 4.25)
(X – x̅)2
50.750.5625
61.753.0625
4-0.250.0625
2-2.255.0625
Total8.75

⇒ σ = √(8.75)/4

⇒ √2.1875)

∴ Standard deviation of these values is 1.479

 

Standard deviation = It is the square root of the arithmetic mean of the square of deviation of the items from their mean value

σ = √[x – x̅)2/n]

`

Question 14

Calculate the standard deviation if the mean of a certain set of observations is 20 and the mean of the squares of the same observations is 500.

  1. AOption (a)

    5

  2. BOption (b)

    20

  3. COption (c)

    10

  4. DOption (d)

    25

View answer & explanation

Correct answer

Answer: (c)C.

10

Why this answer is correct

Given

Mean of certain number = 20

Mean of square of same observation = 500

Formula used

σ = √[(∑x2/n –(∑x/n)2]

(∑x/n) = mean

∑x2/n = mean of square

Calculation

Standard deviation is given by

⇒ √[(∑(x2/n –(∑x/n)2] = √[500 – (20)2]

⇒ √(500 – 400)

∴ Standard deviation is 10

Question 15

Calculate the coefficient of range for the following set of data. 3, 6, 6, 8, 9 and 12

  1. AOption (a)

    22.2

  2. BOption (b)

    44.4

  3. COption (c)

    50

  4. DOption (d)

    0.6

View answer & explanation

Correct answer

Answer: (d)D.

0.6

Why this answer is correct

Formula 

Coefficient of range = (maximum range - minimum range)/(maximum range + minimum range)

Range = Maximum value - minimum value

Calculation

Maximum range = 12 and minimum range = 3

⇒ Coefficient of range = (12 - 3)/12 + 3

∴ Coefficient of range = 0.6

Question 16

The mean and variance of the marks of Division 1 which has 60 students is 45 and 4 respectively and the mean and variance of the marks of Division 2 which has 40 students is 55 and 9 respectively. What will be the variance of the marks of the two divisions combined?

  1. AOption (a)

    30

  2. BOption (b)

    20

  3. COption (c)

    10

  4. DOption (d)

    40

View answer & explanation

Correct answer

Answer: (a)A.

30

Why this answer is correct

Given

n1 = 60

n2 = 40

x̅1 = 45

x̅2 = 55

σ21 = 4

σ22 = 9

Formula used

Combined mean = X̅ = (n1 × x̅1 + n2 × x̅ 2)/(n1 + n2)

Variance of combined mean = n1(σ21 + d21) + n2(σ22 + d22)/(n1 + n2)

n1 and n2 are group 1 and group 2 observation

x̅1 and x̅2 are mean of group 1 and group 2

σ21 and σ22 are variance of group 1 and group 2

d1 = x̅1 – X̅

d2 = x̅2 – X̅

Calculation

The combined mean is X̅

⇒ (60 × 45 + 40 × 55)/(60 + 40)

⇒ (2700 + 2200)/100

∴ Combined mean is 49

⇒ d1 = 45 – 49

⇒ d1 = -4

⇒ d21 = 16

⇒ d2 = 55 – 49 = 6

⇒ d22  = 36

The combined variance of both group

⇒ 60(4 + 16) + 40(9 + 36)/(60 + 40)

⇒ (60 × 20 + 40 × 45)/(100)

⇒ (1200 + 1800)/100

⇒ 3000/100

∴ The combined variance is 30

Question 17

If the mean of a certain set of data is 16 and variance is 4 then find the coefficient of variance.

  1. AOption (a)

    25

  2. BOption (b)

    12.5

  3. COption (c)

    10

  4. DOption (d)

    20

View answer & explanation

Correct answer

Answer: (b)B.

12.5

Why this answer is correct

Given

Arithmetic mean =  (μ) = 16

variance = σ2 = 4

Formula

Standard deviation = σ = √variance

CV = Coefficient of variation = σ/μ

σ = Standard deviation

μ = Mean

Calculation

Standard deviation =  σ = √4 = 2

⇒ CV = (σ/μ) × 100

⇒ CV = (2/16) × 100

∴ Coefficient of variation is 12.5

Question 18

If a set of points represent probability density, then the third central moment is the ______________.

  1. AOption (a)

    skewness

  2. BOption (b)

    kurtosis

  3. COption (c)

    mean

  4. DOption (d)

    variance

View answer & explanation

Correct answer

Answer: (a)A.

skewness

Why this answer is correct

Explaination

We all know that a measure of skewness is obtained by the use of the third moment about the mean (Third central mean)

Skewness is measured by the term β1

⇒ μ23/μ22

The first moment about the origin is the measure of the mean

The second moment about the mean measures the variance 

The third moment about the mean measures the skewness

Question 19

Which formula represents the 2nd moment around the mean?

  1. AOption (a)

    Σ(xi – μx)2

  2. BOption (b)

    √Σ(xi – μx)2

  3. COption (c)

    Σ(xi2 – μx2)

  4. DOption (d)

    √ Σ(xi2 – μx2)

View answer & explanation

Correct answer

Answer: (a)A.

Σ(xi – μx)2

Why this answer is correct

Calculaton

Moment about mean = The rth moments of a variable about the mean μr  denoted by μ =(1/N)[∑fi(xi - μx )r 

⇒ Put r = 2

∴ ∑fi(xi - μx )2 represents the 2nd moment around the mean

Question 20

Calculate skewness using Bowley's formula given lower quartile, upper quartile and median values of a data set are 16, 40 and 24.

  1. AOption (a)

    0.33

  2. BOption (b)

    0.44

  3. COption (c)

    0.55

  4. DOption (d)

    0.67

View answer & explanation

Correct answer

Answer: (a)A.

0.33

Why this answer is correct

Given

Q1 = 16

Q3 = 40

Md = 24

Formula 

absolute measure of skewness = = Bowley's measure of skewness Sq = (Q3 - 2Md + Q1)(/Q3 - Q1)

Q1 = Upper quartile

Q3 = Upper quartile

Md = Median

Calculation

Bowley's measure of skewness = (40 + 16 - 2 × 24)/(40 - 16)

⇒ (56 - 48)/24

∴ Bowley's measure of skewness is 8/24 or 0.33

Bowley's measure of skewness = This measure is based on quartiles. For a symmetrical distribution, Q1 and Q3 are equidistance from median

⇒ absolute measure of skewness =  (Q3 - Md) - (Md - Q1)

⇒ A relative measure of skewness is called Bowley's coefficient and it is denotted by SQ

⇒ SQ = [(Q3 - Md) - (Md - Q1)]/[(Q3 - Md) + (Md - Q1)]

⇒ SQ = (Q3 - 2Md + Q1)(/Q3 - Q1)

Question 21

What is the mean of a data if its Pearson's coefficient of skewness is 0.25, standard deviation is 6 and mode is 18?

  1. AOption (a)

    16.5

  2. BOption (b)

    10.5

  3. COption (c)

    21.5

  4. DOption (d)

    19.5

View answer & explanation

Correct answer

Answer: (d)D.

19.5

Why this answer is correct

1 - Given

Pearson’s coefficient of skewness = 0.25

Standard deviation = 6

Mode = 18

Formula

SK = (Mean – Mode)/Standard deviation

Sk = Karl pearson’s coefficient

Calculation

Karl pearson’s measure of skewness is based upon the divergence of mean from mode in a skewed distribution

Let mean be x

⇒ Sk = (Mean – Mode)/Standard deviation

⇒ 0.25 = (x – 18)/6

⇒ x = 0.25 × 6 + 1

⇒ x = 19.5

∴ Mean is 19.5

Question 22

Which condition has to be met to say that a series has positive skewness?

  1. AOption (a)

    Mode > Mean > Median

  2. BOption (b)

    Median > Mode > Mean

  3. COption (c)

    Mode > Median > Mean

  4. DOption (d)

    Mean > Median > Mode

View answer & explanation

Correct answer

Answer: (d)D.

Mean > Median > Mode

Why this answer is correct

Calculaton

For the positive skewed distribution the frequency curve has longer tail towards the right

Karl pearson’s measure of skewness is based upon the divergence of mean from mode in a skewed distribution

⇒ Sk = (Mean – Mode)/Standard deviation

The sign Sk gives the direction and its magnitude gives the extent of skewness

If Sk > 0 the distribution is positive skewed

If Sk < 0 the distribution is negative skewed

⇒ To obtained the  Sk > 0 we have one condition

∴  Mean > Median > Mode

Question 23

The kurtosis of any univariate normal distribution is ________.

  1. AOption (a)

    2

  2. BOption (b)

    3

  3. COption (c)

    1

  4. DOption (d)

    0

View answer & explanation

Correct answer

Answer: (b)B.

3

Why this answer is correct

Explaination

Kurtosis measure the shape of a distribution or in other word kurtosis measures the peakness of its frequency distribution

The measures of kurtosis is given by β2 = μ4/μ22

⇒ β2 =3 for mesokurtic

⇒ β2 > 3, the curve is more peaked than mesokurtic and called leptokurtic

⇒ β2 < 3, the curve is less peaked than mesokurtic and called platykurtic.

∴ For normal distribution the kurtosis β2 =3

Question 24

Characteristics of a leptokurtic distribution are _________.

  1. AOption (a)

    1)Positive excess kurtosis, 2) Slender in shape and 3)Fatter tails

  2. BOption (b)

    1)Negative excess kurtosis, 2) Slender in shape and 3)Fatter tails

  3. COption (c)

    1)Positive excess kurtosis, 2) Thicker in shape and 3)Thinner tails

  4. DOption (d)

    1)Negative excess kurtosis, 2) Thicker in shape and 3)Thinner tails

View answer & explanation

Correct answer

Answer: (a)A.

1)Positive excess kurtosis, 2) Slender in shape and 3)Fatter tails

Why this answer is correct

Explaintaion

Kurtosis measure the shape of a distribution or in other word kurtosis measures the peakness of its frequency distribution

The measures of kurtosis is given by β2 = \Meu4/meu22

⇒ β2 =3 for mesokurtic

⇒ β2 > 3, the curve is more peaked than mesokurtic and called leptokurtic

⇒ β2 < 3, the curve is less peaked than mesokurtic and called platykurtic.

From this diagram it is shown that character of a leptokurtic distribution are

⇒ Positive excess kurtosis

⇒ Slender in shape

⇒ Fatter tails

∴ Option 1 is correct

Question 25

Coefficient of Kurtosis β2 = ____________, where μ2 and μ4 are the second and fourth moments about mean.

  1. AOption (a)

    μ2μ42\frac{\mu_2}{\mu_4^2}

  2. BOption (b)

    μ42μ2\frac{\mu_4^2}{\mu_2}

  3. COption (c)

    μ4μ22\frac{\mu_4}{\mu_2^2}

  4. DOption (d)

    μ22μ4\frac{\mu_2^2}{\mu_4}

View answer & explanation

Correct answer

Answer: (c)C.

μ4μ22\frac{\mu_4}{\mu_2^2}

Why this answer is correct

Explanation 

Kurtosis measure the shape of distribution or in other word kurtosis measures the peakness of its frequency distribution

∴The measures of kurtosis is given by:

β2=μ4μ22\beta_2=\frac{\mu_4}{\mu_2^2}

<sub> </sub>

If the curve has much flatness then the normal curve is called a Leptokurtic curve

If the curve has lesser flatness than the normal curve then it is called a platykurtic curve

If the curve is equally flat as a normal curve then it is called a Mesokurtic curve

 

Question 26

Find the coefficient of correlation if the two regression coefficients are 0.5 and 4.5.

  1. AOption (a)

    1.5

  2. BOption (b)

    2.5

  3. COption (c)

    3.5

  4. DOption (d)

    2.25

View answer & explanation

Correct answer

Answer: (a)A.

1.5

Why this answer is correct

Given

bxy = 0.5

byx = 405

Formula

The correlation coefficient is the geometric mean of two regression coefficient

r = √(bxy × byx)

r = correlation coefficient

Calculation

r = √(0.5 × 4.5)

r = 1.5

∴ Correlation coefficient is 1.5

Question 27

Pearson's correlation coefficient = _________________. (S represents standard deviation)

  1. AOption (a)

    (Sx.Sy)/Covariance(x,y)

  2. BOption (b)

    Covariance2(x,y)/(Sx.Sy)

  3. COption (c)

    (Sx.Sy)2/Covariance(x,y)

  4. DOption (d)

    Covariance(x,y)/(Sx.Sy)

View answer & explanation

Correct answer

Answer: (d)D.

Covariance(x,y)/(Sx.Sy)

Why this answer is correct

Calculation

∴ The Karl Pearson's coefficient of correlation is denotted by r(x, y) is defined as

r(x, y) = cov(x,y)/√σx2 × √σy2

⇒ cov(x,y)/σx × σy

⇒ cov(x,, y)/SxSy

 

Important Points

Cov(x, y) = 1/n[∑(Xi – X̅)(Yi – Y̅)

Where

We know that covariance = σxy = 1/n[∑(Xi – X̅)(Yi – Y̅)

σx, σy or Sx and Sy denoted Standard deviation

Question 28

The range of values that coefficient of correlation can take are _____________.

  1. AOption (a)

    0 ≤ r ≤ +1

  2. BOption (b)

    -1 < r < +1

  3. COption (c)

    0 < r < +1

  4. DOption (d)

    -1 ≤ r ≤ +1

View answer & explanation

Correct answer

Answer: (d)D.

-1 ≤ r ≤ +1

Why this answer is correct

Explaination

Remember the result that the range of values that coefficient of correlation can take are -1 ≤ r ≤ +1

Important Points

Basically, Correlation refers to the relationship of variables . There are 3 types of correlation

1 - Positive or negative correlation

2 - Simple, partial or multiple

3 - Linear or non linear

Question 29

Spearman's rank correlation coefficient is given by _____________.

  1. AOption (a)

    1 + 6∑di2/[n(n2-1)]

  2. BOption (b)

    1 - 6∑di/[n(n2-1)]

  3. COption (c)

    1 - 6∑di2/[n(n2-1)]

  4. DOption (d)

    1 + 6∑di/[n(n2-1)]

View answer & explanation

Correct answer

Answer: (c)C.

1 - 6∑di2/[n(n2-1)]

Why this answer is correct

Calculation

The spearman's rank correlation is denotted by ρ

⇒ ρ = 1 - 6∑d2/n(n2 - 1)

where as,

d = difference between the ranks of paired items of X and Y variables

∑d = total of squares of rank differences

n = number of pairs if items

Important Points

The method of ascertaining the coefficient of correlation by ranks was discovered by spearman. This method is based on the ranks of the variables

This method is applicable only to individual observations

In it biggest item gets first rank and so on.

Question 30

If Coefficient of correlation r = 0.5 then coefficient of non-determination is __________.

  1. AOption (a)

    0.5

  2. BOption (b)

    0.25

  3. COption (c)

    1

  4. DOption (d)

    0.75

View answer & explanation

Correct answer

Answer: (d)D.

0.75

Why this answer is correct

Given

Coefficient of correlation r = 0.5

Formula

Coefficient of determination = r2

Coefficient of non determination = 1 - coefficient of determination

Calculation

r = 0.5

⇒ r2 = 0.25

∴ The coefficient of determination = 0.25

∴ The coefficient of non determination is s1 - 0.25 = 0.75

Question 31

If x = 3u + 1 and y = 4v + 2 and the regression coefficient between u and v is 1.2, then find regression coefficient between x and y?

  1. AOption (a)

    0.8

  2. BOption (b)

    1

  3. COption (c)

    0.9

  4. DOption (d)

    1.5

View answer & explanation

Correct answer

Answer: (c)C.

0.9

Why this answer is correct

1 - Given

X = 3u + 1

Y = 4v + 2

Regression coefficient between x and y = (buv) = 1.2

Formula

Regression coefficient are independent of origin but depend on scale

If u = ax + b and v = cy + d

Then buv = (a/c) × bxy

Calculation

According to the question

x = 3u + 1

⇒ u = x/3 – 1/3

Similarly

v = y/4 – 1/2

By using buv = (a/c) × bxy

⇒ 1.2 = (1/3)/(1/4)bxy

⇒ 1.2 = (4/3)bxy

⇒ bxy = 3 × 1.2/4

∴ Regression coefficient between x and y is 0.9

Question 32

Calculate the correlation coefficient between the following values :

x: 3, 5, 1, 7, 5 

y: 4, 3, 0, 8, 2

  1. AOption (a)

    0.9

  2. BOption (b)

    0.8

  3. COption (c)

    0.7

  4. DOption (d)

    0.6

View answer & explanation

Correct answer

Answer: (b)B.

0.8

Why this answer is correct

Given              

x35175
y43082

 

Formula

Correlation coefficient = n∑xy – (∑x × ∑ y)/√{[n∑x2 – (∑x)2] × [n∑y2 – (∑y)2}

n∑xy = arithmetic mean of the summition of product of x and y

x and y = arithmetic average of x and y series

n∑x2 and n∑y2 = arithmetic mean of sum of sauare of item of x and y

Calculation

xyx2y2Xy
3491612
5325915
10100
78496456
5225410
Total21171099393

Putting these value in formula

⇒ r = 5 × 93 – 21 × 17/√{[5 × 109 – (21)2] × [5 × 93 - (17)2}

⇒ r = 108/√[104 ×  176]

⇒ r = 108/135

⇒ r = 0.8

∴ The correlation coefficient between x and y are 0.8

Question 33

If the sum of the squares of difference of ranks of 6 candidates in two criteria is 21, the rank correlation coefficient is __________.

  1. AOption (a)

    0.5

  2. BOption (b)

    0.6

  3. COption (c)

    0.4

  4. DOption (d)

    0.7

View answer & explanation

Correct answer

Answer: (c)C.

0.4

Why this answer is correct

Formula

Spearman’s rank correlation coefficient is denoted by ρ

ρ = 1 – [6∑d2/n(n2 – 1)]

d = difference between rank of paied items  of x and y variables

∑d2 = total of squares of rank differences

n = number of pairs of items

Given

∑d2 = ∑(R1 – R2)2 = 21

n = 6

Calculation

ρ = 1 – [6 × 21/6(62 – 1)

ρ = 1 – 21/35

ρ = 14/35

∴ The rank correlation coefficient is 0.4

Question 34

If 4y = 15 + 6x is the regression line of y on x, and coefficient of correlation between x and y is 0.9, then regression coefficient of x on y is equal to _______.

  1. AOption (a)

    0.54

  2. BOption (b)

    0.45

  3. COption (c)

    0.81

  4. DOption (d)

    0.72

View answer & explanation

Correct answer

Answer: (a)A.

0.54

Why this answer is correct

Given

Regression line of y on x

4y = 15 + 6x

y = 15/4 + (6/4)x

Coefficient of correlation between x and y = ρxy = 0.9

Formula

If the regression coefficient of x on y be bxy, then

ρxy = √(byx × bxy)

Calculation

bxy = 6/4 = 1.5

⇒ 0.9 =√(1.5 × bxy)

⇒ bxy = (0.9 × 0.9)/1.5

⇒ bxy = 0.54

∴ The regression coefficient of x on y is 0.54

Question 35

Find regression coefficient of y on x (byx) if correlation coefficient between x and y values is 0.75 and standard deviation of x and y are 5 and 6.4 respectively.

  1. AOption (a)

    0.96

  2. BOption (b)

    0.59

  3. COption (c)

    1.04

  4. DOption (d)

    1.7

View answer & explanation

Correct answer

Answer: (a)A.

0.96

Why this answer is correct

Given 

Correlation coefficient between x on y = 0.75

Standard deviation of x and y = 5 and 6.4

Formula

Correlation coefficient ‘r’ = Cov(x,y)/SxSy

Cov(x,y) = Coveriance of x and y

Sx = Standard deviation of x

Sy = Standard deviation of y

Correlation coefficient of y on x = byx = Cov(x,y)/Sx2

Calculation

0.75 = Cov(x,y)/5 × 6.4

⇒ Cov(x,y) = 0.75 × 5 × 6.4

⇒ Cov(x,y) = 24

⇒ byx = 24/52

∴ byx = 24/25

∴ correlation coefficient of y on x is 0.96

Question 36

If a box contains 4 red balls and 6 blue balls then what is the probability of picking 2 balls of the same colour?

  1. AOption (a)

    8/15

  2. BOption (b)

    12/25

  3. COption (c)

    13/25

  4. DOption (d)

    7/15

View answer & explanation

Correct answer

Answer: (d)D.

7/15

Why this answer is correct

Given

Red ball = 4 and blue balls = 6

Formula

P(E) = P(E1) + P(E2)

nCr = n!/r!(n – r)!

Calculation

Probability when 2 red balls are drawn then the probability

⇒ P(E1) = 4C2/10C2

Probability when 2 blue balls are drawn

P(E2) = 6C2/10C2

⇒ P(E) = = 4C2/10C2 + 6C2/10C2

⇒ (4C2 + 6C2)/10C2

⇒ [4!/2!(4 – 2)! + 6!/2!(6 – 2)!]/10!/2!(10 – 2)!

⇒ (6 + 15)/10!/2! × 8!

⇒ (21 × 2)/(10 × 9)

⇒ 42/90

⇒ P(E) = 7/15

∴ The probability of picking 2 balls of the same order is 7/15

Question 37

A doctor finds of all patients that visits his clinic the probability that a patient is alcoholic given that the patient has liver disease is 0.08. The probability that a patient is alcoholic is 0.06 and the probability that a patient has liver disease is 0.12. Find the probability that a patient has liver disease given that he or she is alcoholic?

  1. AOption (a)

    0.04

  2. BOption (b)

    0.09

  3. COption (c)

    0.16

  4. DOption (d)

    0.24

View answer & explanation

Correct answer

Answer: (c)C.

0.16

Why this answer is correct

Given

Probability that patient is alcoholic P(A) = 0.06

Probability that a patient has lever disease P(L) = 0.12

Probability that the patient is alcoholic given that the patient has lever disease = P(A/B) = 0.08

Formula

Probability that the patient has lever disease given that he or she is alcoholic

P(L/A) = P(A ∩ L)/P(L)

P(A ∩ L) = P(A/L) ×  P(L)

P(L/A)_ = P(A ∩ L)/P(A)

Calculation

P(A ∩ L) = 0.08 × 0.12

P(L/A)_= 0.08 × 0.12/0.06

⇒ 0.16

∴ The probability that the patient has liver disease given that he or she is alcoholic is 0.16

Question 38

What is the probability that a number selected randomly from 1 to 500 is a multiple of 3 or 7?

  1. AOption (a)

    0.428

  2. BOption (b)

    0.474

  3. COption (c)

    0.512

  4. DOption (d)

    0.576

View answer & explanation

Correct answer

Answer: (a)A.

0.428

Why this answer is correct

Calculation

The numbers which are multiples of 3 from 1 to 500 are

⇒ 3, 6, ------498

⇒ 498 = 3 + (n – 1) × 3

⇒ n – 1 = 495/3

⇒ n = 166

The numbers which are divisible by 7

7, 14, ---------497

⇒ 497 = 7 + (n – 1) × 7

⇒ n – 1 = 490/7

⇒ n = 71

⇒  Multiple of both (3 and 7)  = 23

The probability that the selected randomly from 1 to 500 is a multiple of 3 or 7 will be

⇒ (166 + 71)/500 – 23/500

⇒ 214/500

∴ The probability that a number selected randomly from 1 to 500 is multiple of 3 or 7 is 0.428

Question 39

If P(A) = 2/3 and P(B) = 5/8 and find probability of only B occurring if probability of only A occurring is 1/6?

  1. AOption (a)

    1/8

  2. BOption (b)

    1/9

  3. COption (c)

    1/6

  4. DOption (d)

    2/9

View answer & explanation

Correct answer

Answer: (a)A.

1/8

Why this answer is correct

Given

P(A) = 2/3

P(B) = 5/8

P(Only A occurring) = 1/6

Calculation

P(A ∩ B) = P(A) – P(Only A occurring)

⇒ 2/3 – 1/6

P(A ∩ B) = ½

Probability of only B occurring = P(B) - P(A ∩ B)

⇒ 5/8 – 1/2

∴ Probability of only B occurring is 1/8

Question 40

Find P(A'/B'), given P(A) = 3/4, P(B) = 9/20 and P(A∩B) = 1/4?

  1. AOption (a)

    1/20

  2. BOption (b)

    1/9

  3. COption (c)

    1/11

  4. DOption (d)

    1/12

View answer & explanation

Correct answer

Answer: (c)C.

1/11

Why this answer is correct

Given:

P(A) = 3/4

P(B) = 9/20

P(A ∩ B) = 1/4

Calculation:

P(A ∪ B) = P(A) + P(B) – P(A ∩ B)

= 3/4 + 9/20 – 1/4

= 19/20

P(A'/B') = P(A' ∩ B')/P(B')= 1 – P(A ∪ B)'/[1 – P(B)]

= [1 – 19/20]/[1 – 9/20]

=1/11

∴  Probability P(A'/B') is 1/11.

Question 41

A and B are independent events. The odds in favour of A and B are 1:1 and 3:2 respectively. Find the probability that only one of the two events occurs?

  1. AOption (a)

    0.6

  2. BOption (b)

    0.7

  3. COption (c)

    0.8

  4. DOption (d)

    0.5

View answer & explanation

Correct answer

Answer: (d)D.

0.5

Why this answer is correct

Given

Odds in favour of A and B are 1 : 1 and 3 : 2

P(A) = 1/2

P(B) = 3/5

Calculation

The event are independent

⇒ P(A ∩ B) = P(A) × P(B)

⇒ 1/2 × 3/5 = 3/10

The probability that only one of the two events occurs

⇒ P(A) – P(A ∩ B) + [P(B) - P(A ∩ B)]

⇒ (1/2 – 3/10) + [3/5 – 3/10]

⇒ 1/2 + 3/5 – 6/10

∴ The probability that only one of the two events occurs is 1/2

Question 42

There are five cards with the numbers 1, 3, 5, 6 and 9. Find the probability that a 5 digit number formed by using these cards is divisible by 4?

  1. AOption (a)

    0.1

  2. BOption (b)

    0.3

  3. COption (c)

    0.2

  4. DOption (d)

    0.4

View answer & explanation

Correct answer

Answer: (c)C.

0.2

Why this answer is correct

Explanation:

The total number of 5 digit numbers that can be formed by using the five cards

⇒ 5! = 120

Divisibility of 4:

A number is divisible by 4 if it's last two digit is divisible by 4

Now, The numbers of number formed by these 5 digits which is divisible by 4 

Case 1. When the last two digit is 16 

The numbers of number formed = 3! = 6

Case 2. When the last two digit is 36 

The numbers of number formed = 3! = 6

Case 3. When the last two digit is 56

The numbers of number formed = 3! = 6

Case 4. When the last two digit is 96

The numbers of number formed = 3! = 6

So, The total numbers of number formed by these 5 digits which is divisible by 4 is 24

∴ The probability P(E) IS 24/120 = 0.2

Question 43

If 3 dice are thrown what is the probability of getting same digits on atleast two dices?

  1. AOption (a)

    1/36

  2. BOption (b)

    7/36

  3. COption (c)

    27/216

  4. DOption (d)

    1/6

View answer & explanation

Correct answer

Answer: (d)D.

1/6

Why this answer is correct

Explanation

When 3 dice dice thrown the total outcomes n(s) = 216

Total outcomes having all the same digits are

{(1, 1, 1), (2, 2, 2), .....(6, 6, 6)} = 6 outcomes

Total outcomes having two same digits are

(1, 1, 2), (1, 1, 3), (1, 1, 4), (1, 1, 5), (1, 1, 6) = 5 outcomes

(2, 2, 1), (2, 2, 3) _-------(2, 2, 6)   = 5 outcomes

-------------------------------------------  = 5 outcomes

-------------------------------------------  = 5 outcomes

-------------------------------------------  = 5 outcomes

(6, 6, 1), (6, 6, 2) _-------(6, 6, 5)  = 5 outcomes

Total outcomes = 6 + 6 × 5 = 36 

∴ Probability of getting same digit of at least two dice = 36/216 = 1/6

Question 44

In a family of three children, what is probability that the third child is a girl given that the other two are also girls?

  1. AOption (a)

    13\frac 13

  2. BOption (b)

    23\frac 23

  3. COption (c)

    14\frac 14

  4. DOption (d)

    16\frac 16

View answer & explanation

Correct answer

Answer: (c)C.

14\frac 14

Why this answer is correct

Formula

Probability = Favourable outcome/total outcome

Calculation

Family of 3 children = G, G, G whereas G = Girls

We can select girl as 3C1 = 3!1!(3−1)!\frac{3 !}{1! (3-1)!} = 3

No of possible ways to select the girls be 3C12!\frac{^3 C _1}{2!} 

⇒ Possible outcome = 32\frac 32

Total way to select girls =3! = 3 × 2

⇒ Total outcome 6

Probability = Favourable outcome/total outcome

⇒ Probability = 3/26=32×6=14\frac{3/2}{6}=\frac{3}{ 2 \times 6} = \frac 14

∴ The probability that the third child is a girl given that the other two are also girls is 1/4

Question 45

A, B and C are three mutually exclusive and exhaustive events. P(A) = 2P(B) = 6P(C). Find P(B).

  1. AOption (a)

    0.1

  2. BOption (b)

    0.3

  3. COption (c)

    0.6

  4. DOption (d)

    0.4

View answer & explanation

Correct answer

Answer: (b)B.

0.3

Why this answer is correct

Given

P(A) = 2P(B) = 6P(C)

Concept

When event are mutually exclusive and exhaustive

P(A) + P(B) + P(C) = 1

Calculation

Let P(A) be k

⇒ P(B) = k/2

⇒ P(C) = k/6

So according to the concept

⇒ k + k/2 + k/6 = 1

⇒ 10k/6 = 1

⇒ k = 3/5

∴ P(B) is k/2 = 3/(5 × 2) = 0.3

Question 46

Find the expected value of a random variable which has the following probability distribution?

X:246810
P:0.10.30.40.10.1
  1. AOption (a)

    5.2

  2. BOption (b)

    5.4

  3. COption (c)

    5.6

  4. DOption (d)

    5.8

View answer & explanation

Correct answer

Answer: (c)C.

5.6

Why this answer is correct

Calculation

We know expected value of random variable

f(x) = ∑xipi

where I = 1, 2, 3,-----n

f(x) = P1x1 + P2x2 + P3x3 + P4x4 + P5x5

⇒ f(x) = 0.1 × 2 + 0.3 × 4 + 0.4 × 6 + 0.1 × 8 + 0.1 × 10

⇒ 0.2 + 1.2 + 2.4 + 0.8 + 1

∴ f(x) = 5.6

Question 47

In a box of 100 bulbs 30 are defective. What is the probability of getting more than 2 defective bulbs if 5 are chosen randomly from the box?

  1. AOption (a)

    0.124

  2. BOption (b)

    0.213

  3. COption (c)

    0.264

  4. DOption (d)

    0.163

View answer & explanation

Correct answer

Answer: (d)D.

0.163

Why this answer is correct

Calculation

Total number of bulbs = 100

Defective bulb = 30

Probability of defective bulb = p = 30/100

⇒ p = 3/10

⇒ q = 1 – p

⇒ q = 1 – 3/10 = 7/10

When 5 bulb are chosen random, n = 5

P(X = x) = ncxpxqn – x

⇒ 5cxpxq5 – x

Getting more than 2 defective bulbs, x = 3, 4, 5

⇒ 5c3(3/10)3(7/10)2 + 5c4(3/10)4(7/10) + 5c5(3/10)5(7/10)5 – 5

⇒ 0.1323 + (5 × 81 × 7)/100000 + (243/100000)

⇒ 0.1323 + 0.02835 + 0.00243

⇒ 0.163

∴ Probability of getting more than 2 defective bulbs if 5 are chosen randomly from the box is 0.163

Question 48

The mean and variance of a binomial distribution are 5 and 4 respectively. What is the probability of success?

  1. AOption (a)

    0.3

  2. BOption (b)

    0.2

  3. COption (c)

    0.4

  4. DOption (d)

    0.1

View answer & explanation

Correct answer

Answer: (b)B.

0.2

Why this answer is correct

Given

Mean of binomial distribution = np = 5

Variance of binomial distribution = npq = 4

Calculation

npq = 4 and np = 5

⇒ 5q = 4

⇒ q = 4/5

⇒ p = 1 – q

⇒ p = 1 – 4/5

∴ Probability of success = 1/5 = 0.2

Question 49

If the mean of a Poisson distribution is 9 then its variance is equal to ________.

  1. AOption (a)

    3

  2. BOption (b)

    9

  3. COption (c)

    6

  4. DOption (d)

    81

View answer & explanation

Correct answer

Answer: (b)B.

9

Why this answer is correct

Given

Mean of poisson distribution = 9

Calculation

In poisson distribution mean is equal to variance

∴ Variance is 9

Question 50

Find the mean of x if x is a Poisson variate satisfying the condition P(3) = P(4)?

  1. AOption (a)

    2

  2. BOption (b)

    8

  3. COption (c)

    4

  4. DOption (d)

    16

View answer & explanation

Correct answer

Answer: (c)C.

4

Why this answer is correct

Given

P(3) = P(4)

Concept

In poisson distribution = it is also a discrete distribution. Poisson distribution fulfil the limitation of nomal distribution

Poisson distribution is given by f(x) = (e-λ × λx)/x!

Where x = 0, 1, 2, 3---- and λ = mean

Calculation

Here x = 3 and 4

⇒ (e-λ × λ3)/3! = (e-λ × λ4)/4!

⇒ λ  = 4!/3!

⇒ λ = 4

∴ mean of x in poisson distribution is 4

Question 51

For a standard normal distribution P(-1 < z < 1) = __________

  1. AOption (a)

    0.68

  2. BOption (b)

    0.34

  3. COption (c)

    0.99

  4. DOption (d)

    0.49

View answer & explanation

Correct answer

Answer: (a)A.

0.68

Why this answer is correct

Calculation

P(- 1 < z < 1) = F(1) – F( - 1)

⇒ F(1) – [1 – F(1)]

⇒ 0.84 – [1 – 0.84]   (F(1) = 0.84

⇒ 0.84 – 0.16

∴ For standard normal distribution P(-1 < z < 1) is 0.68

Alternate Method

  • Normal (Gaussian) Distribution:
  • The normal distribution is another limiting form of the binomial distribution under the following conditions:
  • The number of trials 'n' is definitely large.
  • Neither p nor q is very small.(p = event will happen, q = event will not happen)
  • ​The normal probability density function with mean μ and standard deviation σ is given by 
  • 1σ2πe(−(X−μ)22σ2)\frac{1}{{\sigma \sqrt {2\pi } }}{e^{\left( {\frac{{ - {{\left( {X - μ } \right)}^2}}}{{2{\sigma ^2}}}} \right)}}​--------1
  • The maximum probability occurs at the point x=μ and is given by :
  • 1σ2π\frac{1}{{\sigma \sqrt {2\pi } }}--------2
  • From equation 2 it signifies that smaller the values of standard deviation produce larger values of maximum probability this is called a measure of the precision of data or precision index.

​

Question 52

If x follows normal distribution with mean = 20 and variance = 25. What is P(x ≥ 25)? Given P(z ≤ 1) = 0.841, P(z ≤ 2) = 0.977

  1. AOption (a)

    0.023

  2. BOption (b)

    0.16

  3. COption (c)

    0.32

  4. DOption (d)

    0.046

View answer & explanation

Correct answer

Answer: (b)B.

0.16

Why this answer is correct

Given

μ = mean = 20

σ2 = variance = 25

Formula

P(z ≤ 1) = 0.841

P(z ≤ 2) = 0.977

In normal distribution

z = (x - μ)/σ

Calculation

According to question, here x = 25

Standard deviation = √σ = 5

⇒ z = (25 - 20)/5

⇒ z = 1

⇒ P(x ≥ 25) = P(z ≥ 1)

⇒ 1 - P(z ≤ 1)

⇒ 1 - 0.841

⇒ 0.16

∴ The value of P(x ≥ 25) is 0.16

Question 53

10% of people in a village are afflicted with a viral disease. What size of sample should be taken to ensure that error of estimation of the proportion is not more than 5% with 95% confidence?

  1. AOption (a)

    138

  2. BOption (b)

    238

  3. COption (c)

    38

  4. DOption (d)

    338

View answer & explanation

Correct answer

Answer: (a)A.

138

Why this answer is correct

Given

10% people of the village are affected with viral disease

error margin = 5% or 5/100

Formula

Error margin  ≤ z × √(pq/n)

p denotes the probability of a success on one trial and q denotes the probability of a failure on one trial

n = size of the sample

Calculation

p = 10% = 10/100

⇒ p = 0.1

We know that q = 1 - p

⇒ q = 1 - 0.1

⇒ q = 0.9

According to formula

⇒ 5/100 ≤ 1.96 × √(0.1 × 0.9/n)

⇒ 5/100 = 1.96 × 0.3/√n

⇒ 5√n = 196 × 0.3

⇒ √n = 58.8/5

⇒ n = 138

∴ Size of the sample should taken as 138

Additional Informationz - Values for Selected (Percentage) Confidence Levels:

Percentage Confidencez-value
801.28
901.645
951.96
982.33
992.58

Question 54

A random sample of 100 articles from a large batch of articles contains 10 defective articles. What is the standard error of estimation of the sample proportion?

  1. AOption (a)

    0.02

  2. BOption (b)

    0.01

  3. COption (c)

    0.04

  4. DOption (d)

    0.03

View answer & explanation

Correct answer

Answer: (d)D.

0.03

Why this answer is correct

Given

n = 100

p = 10/100 = 0.1

q = 1- p = 1 - 0.1 = 0.9

Formula

Standard error of estimation = SEp = √[(pq)/n]

Calculation

SEP = √(0.1 × 0.9)/100]

⇒ 0.03

∴ Standard error of estimation is 0.03

Question 55

A statistician estimated that the standard deviation of her measurements is 2 cm. What should be the size of the sample in order to be 99% confident that the error of her estimates of mean does not exceed 0.43 cm? (z* = 2.58, for 99% confidence level)

  1. AOption (a)

    144

  2. BOption (b)

    121

  3. COption (c)

    169

  4. DOption (d)

    196

View answer & explanation

Correct answer

Answer: (a)A.

144

Why this answer is correct

Given

Standard deviation σ = 2 cm

z = 2.58 for 99% confident level

Formula

Standard error = σ/√n

Calculation

SE= σ/√n

⇒ 2.58 × σ/√n  ≤ 0.43 here z = 2.58

⇒ √n = (2.58 × 2)/0.43

⇒ √n = 12

⇒ n = 144

∴ The size of the sample in order to be 99% confident that the error of her estimates of mean does not exceed 0.43 cm is 144

Question 56

The standard error =__________. ( s is the standard deviation of the sample, N is the population size, and n is the sample size. N >20n)

  1. AOption (a)

    s/√n

  2. BOption (b)

    s/√N

  3. COption (c)

    √(s/n)

  4. DOption (d)

    √(s/N)

View answer & explanation

Correct answer

Answer: (a)A.

s/√n

Why this answer is correct

Explanation

When the standard deviation of the population is known( then for the large samples

Standard error = s/√n

s = standard deviation for large sample

n = number of obserbvations

Question 57

A random sample of 2 items is picked out from a population of 15 items. The number of all such samples is ________.

  1. AOption (a)

    105

  2. BOption (b)

    60

  3. COption (c)

    210

  4. DOption (d)

    90

View answer & explanation

Correct answer

Answer: (a)A.

105

Why this answer is correct

Given

Total items = 15

Select = 2

Formula

nCr = n!/r!(n - r)!

Calculation

The number of such samples = 15C2 = 15!/2!(15 - 2)!

⇒ 15 × 14 × 13!/2 × 13!

⇒ 15 × 7 = 105

∴ The number of all such samples is 105.

Question 58

The average length of a sample of 50 leaves measured by a botanist was 40 mm with a standard deviation of 21 mm. Assuming normal deviation find the limits which have a 95% chance of including the expected length of the leaf.

  1. AOption (a)

    42.35 - 37.65

  2. BOption (b)

    34.12 - 45.88

  3. COption (c)

    43.12 - 36.88

  4. DOption (d)

    44.58 - 35.42

View answer & explanation

Correct answer

Answer: (b)B.

34.12 - 45.88

Why this answer is correct

Given

Sample size = 50 mm

Mean = x̅ = 40 mm

Standard deviation = σ = 21 mm

Concept

For the population means μ (or expected length; the standard is normal and it is given by

x̅ ± 1.96 σ/√n

Calculation

40 ± (1.96 × 21)/√50

⇒ 40 ± 5.88

⇒ 34.12 or 45.88

∴ The limits which have a 95% chance of including the expected length of the leaf was  34.12 or 45.88

Question 59

The 95% confidence level limits to a population mean are 94.12 - 105.88. Find population standard deviation if sample size is 100.

  1. AOption (a)

    15

  2. BOption (b)

    30

  3. COption (c)

    45

  4. DOption (d)

    60

View answer & explanation

Correct answer

Answer: (b)B.

30

Why this answer is correct

Given

Confidence level limits = 94.12 - 105.88

Sample size = 100

Concept 

p ± 1.96 SE

SE = 1.96 σ/√n

Calculation

SE = 1.96 σ/√100

⇒ SE = (1.96 × σ)/10

⇒ SE = 0.196 σ 

⇒ p + 1.96 σ = 105.88

⇒ 100 + 0.196σ = 105.88

⇒ 0.196 = 5.88

⇒ σ = 5.88/0.196

∴ The standard deviation is 30

Question 60

In a particular study if the sample size was 50, then standard error was 8 units. How much would be the standard error if sample size was increased to 200?

  1. AOption (a)

    4

  2. BOption (b)

    2

  3. COption (c)

    16

  4. DOption (d)

    8

View answer & explanation

Correct answer

Answer: (a)A.

4

Why this answer is correct

Given

n = 50

S = 8

n = sample size

S = Standard deviation

Formula

S = ρ/√n

Calculation

We know that from the upper formula, ρ = S√n

⇒ 8 × √50

According to the question, if the sample size increased by 200

⇒ new n = 200

⇒ Standard error = ρ/√n

⇒ (8 × √50)/√200

⇒ 4

∴ The standard error is 4 if sample size was increased to 200.

Additional Information 

  • Standard Deviation (S. D): 
  • A standard deviation denoted by σ is a measurement of the spread of a dataset around its mean.
  • Low standard deviation means data are clustered around the mean, and high standard deviation indicates data are more spread out.
  • ​Standard Error (S. E): 
  • The standard error of the mean, or simply standard error, indicates how different the population mean is likely to be from a sample mean.
  • It tells you how much the sample mean would vary if you were to repeat a study using new samples from within a single population.

Question 61

A random sample of 200 articles taken from a large batch of articles contains 15 defective articles. What is the estimate of the sample proportion of defective articles?

  1. AOption (a)

    0.186

  2. BOption (b)

    0.054

  3. COption (c)

    0.0816

  4. DOption (d)

    0.54

View answer & explanation

Correct answer

Answer: (c)C.

0.0816

Why this answer is correct

Given

Number of defective bulbs = 15

Total sample = 200

Calculation

The estimation of sample proportion = Number of defective bulbs/(Total sample - Number of defective bulbs)

⇒ 15/(200 - 15)

⇒ 15/185

⇒ 0.0816

∴ The estimate of the sample proportion of defective articles is 0.0816

Question 62

A factory manufactures 10,000 bolts per day. From a sample of 500 bolts, 4% were of unacceptable quality. Estimate the interval of a number of bolts that would be of unacceptable quality produced per day at 95% confidence.

  1. AOption (a)

    (313, 487)

  2. BOption (b)

    (305, 495)

  3. COption (c)

    (328, 472)

  4. DOption (d)

    (233, 567)

View answer & explanation

Correct answer

Answer: (d)D.

(233, 567)

Why this answer is correct

Given

Total manufactures bulbs = N = 10,000

Sample = n = 500

Defective pairs = 4%

Calculation

Here

⇒ p = 4% = .04

⇒ q = 1 - p

⇒ q = 1 - 0.04

⇒ q = .96

⇒ Estimation of error = SE = √pq/sample

⇒ √(.04 × .96)/500

⇒ SE = .0087

⇒ Zα = 1.96 (Given value)

⇒ SE × Zα = .0087 × 1.96

⇒ 0.0167

⇒ p ± SE × Zα 

⇒ 0.4 ± 0.167

⇒ 0.4 + 0.167 = 0.0567

⇒ 0.4 - 0.167 = .0233

⇒ Number of bolts can be expected to be spoiled = 10000 × 0.0567

⇒ 567

⇒ Number of bolts can be expected to be spoiled = 10000 × 0.0233

⇒ 233

⇒ the interval of a number of bolts that would be of unacceptable quality produced per day at 95% confidence is 233, 567

Question 63

The mean pay of 15 H1-B visa holders was found to be Rs 65 lakhs/yr with a standard deviation of Rs 6 lakhs. What are the 99% confidence limits (in Rs lakhs) for the mean pay of the population of H1-B visa holders assuming it to be normal? (The upper 0.5% of t-distribution with 14 degrees of freedom is 2.98)

  1. AOption (a)

    (61.88 , 68.12)

  2. BOption (b)

    (60.22 , 69.77)

  3. COption (c)

    (62.55 , 67.45)

  4. DOption (d)

    (59.33 , 70.67)

View answer & explanation

Correct answer

Answer: (b)B.

(60.22 , 69.77)

Why this answer is correct

Calculation

n = sample size = 15

Mean = x̅ = 65 lakhs

Standard deviation = S = 6 lakh

Concept

Confidence interval = x̅ - tα/2)S/√n < μ < x̅ + tα/2)S/√n

t(α/2) = t - value with (n - 1, degrees of freedom leavin an area of α/2 to the right

t(α/2) = 2.98 ( Given in question)

Calculation

According to question, putting the values

⇒ 65 × 2.98 × 6/√15 < μ < 65 + 2.98 × 6/√5

⇒ 65 - 17.88/3.873 < μ < 65 + 17.88/3.873

⇒ 65 - 4.62 < μ < 65 + 4.62

⇒ 60.38 < μ <  69.62

∴ μ = { 60.22, 69.77}

Question 64

The standard error of the mean decreases if the population standard deviation ______________.

  1. AOption (a)

    increases or if sample size increases

  2. BOption (b)

    decreases or if sample size increases

  3. COption (c)

    decreases or if sample size decreases

  4. DOption (d)

    increases or if sample size decreases

View answer & explanation

Correct answer

Answer: (b)B.

decreases or if sample size increases

Why this answer is correct

Explaination

Standard error of the mean = SEx- = σρ/√n

Hence SEx- decreases when population standard deviation(σρ) decreases or if sample size (n) increase

Question 65

A confidence interval increases in width as the ________.

  1. AOption (a)

    sample size is increased

  2. BOption (b)

    degrees of freedom is increased

  3. COption (c)

    level of confidence increases

  4. DOption (d)

    sample standard deviation is decreased

View answer & explanation

Correct answer

Answer: (c)C.

level of confidence increases

Why this answer is correct

Explaination

According to the definition and the adjacent figure a confidence interval increases on width as the level of confidence increases

Question 66

What is the value of the z-score for x = 125 if population mean and variance are 121 and 4 respectively.

  1. AOption (a)

    2

  2. BOption (b)

    1

  3. COption (c)

    .2

  4. DOption (d)

    .1

View answer & explanation

Correct answer

Answer: (a)A.

2

Why this answer is correct

Formula

Z- score = ( x - μ)/σ

μ = mean

σ = Standard deviation

Standard deviation = √(variance)

x = 125

μ = 121

Variance = 4

Calculation

Standard deviation = √4

⇒ 2

Z- score = ( 125 - 121)/2

⇒ 4/2

∴ Z - score is 2

Question 67

In statistical hypothesis testing, a type I error is the _____________ a false null hypothesis.

  1. AOption (a)

    incorrectly retaining of a true null hypothesis, while a type II error is incorrectly retaining

  2. BOption (b)

    incorrect rejection of a true null hypothesis, while a type II error is incorrectly retaining

  3. COption (c)

    incorrect rejection of a true null hypothesis, while a type II error is incorrect rejection

  4. DOption (d)

    incorrectly retaining of a true null hypothesis, while a type II error is incorrect rejection

View answer & explanation

Correct answer

Answer: (b)B.

incorrect rejection of a true null hypothesis, while a type II error is incorrectly retaining

Why this answer is correct

Explaination

In statistical in inferences, according to testing of hypothesis, rejecting a null hypothesis whenit is true while type 11 error is incorrectly retaining of a false hypothersis. So, second option is the correct answer.

Question 68

If, Sample from Population #1: 

3,5,8 

Sample from Population #2: 

2,4,8 

Sample from Population #3: 

3,6,7 

Then what is the number of degrees of freedom of treatment?

  1. AOption (a)

    3

  2. BOption (b)

    1

  3. COption (c)

    4

  4. DOption (d)

    2

View answer & explanation

Correct answer

Answer: (d)D.

2

Why this answer is correct

Given

Sample 1Sample 2Sample 3
X1X2X3
323
546
887
Total161416
x̅16/314/316/3

Grand mean = (16/3 + 14/3 + 16/3)/3 

⇒ 46/9

Variance between the sample

Sample 1Sample 2Sample 3
(X1 – x̅)(X2 – x̅)(X3 – x̅)
4/8116/814/81
4/8116/814/81
4/8116/814/81

Total sum of squares

⇒ (3 × 4/81 + 3 × 16/81 + 3× 4/81)

⇒ 72/81 = 8/9

⇒ For sample 2 = (3 × 4/82 + 3 × 16/81 + 3 × 4/81)

⇒ 72/81 = 8/9

⇒  For sample 3 = (3 × 4/82 + 3 × 16/81 + 3 × 4/81)

⇒ 72/81 = 8/9

⇒ The degree of freedom of treatment is 8/9/8/9 = 1

⇒ The degree of freedom of treatment is 8/9/8/9 = 1

∴ the degree of freedom is 1 + 1 = 2

Question 69

If we have to test if there’s a difference between two groups of patients from different hospitals trying two different therapies, then we need to use ___________.

  1. AOption (a)

    Two way ANOVA without replication

  2. BOption (b)

    One way ANOVA with replication

  3. COption (c)

    Two way ANOVA with replication

  4. DOption (d)

    One way ANOVA without replication

View answer & explanation

Correct answer

Answer: (c)C.

Two way ANOVA with replication

Why this answer is correct

Explaination

When it is believed that two independent factors might have as effect on the response variables of interest. It is possible to design the test so that an analysis if variance can be used to test for the effect of the factors simultaneously with the two factors analysis of variance, we can test two sets hypothesis with the same data at the same times.

∴ Option 3 is correct

Question 70

If confidence level is 90% then two tailed alpha would be ________ %.

  1. AOption (a)

    10

  2. BOption (b)

    45

  3. COption (c)

    2.5

  4. DOption (d)

    5

View answer & explanation

Correct answer

Answer: (d)D.

5

Why this answer is correct

Given

Confidence level = 90%

Calculation

⇒ One level alpha = 100 - 90 

⇒ 10%

∴ Two level alpha 10%/2 is  5%

Question 71

The smaller the alpha level, the _________ the null hypothesis.

  1. AOption (a)

    greater the area where you would reject

  2. BOption (b)

    smaller the area where you would reject

  3. COption (c)

    smaller the area where you would accept

  4. DOption (d)

    greater the area where you would accept

View answer & explanation

Correct answer

Answer: (b)B.

smaller the area where you would reject

Why this answer is correct

Explanation

Smaller the value of α level, the confidence level will be high and hence smaller will be the level of null hypothesis

∴ Smaller will be the area of rejection

Question 72

The mean square of error denoted as MSE = ___________. Where SSE is the sum of squares of error, n is number of data points and m is number of samples.

  1. AOption (a)

    SSE/(n - m - 2)

  2. BOption (b)

    SSE/(n + m)

  3. COption (c)

    SSE/(n + m - 2)

  4. DOption (d)

    SSE/(n - m)

View answer & explanation

Correct answer

Answer: (d)D.

SSE/(n - m)

Why this answer is correct

Formula

MSE = SSE/Degree of freedom

MSE = Variance within the samples

SSE = Sum of the squares of the error

Calculation 

For one - way classification model degree of freedom = n - m

n = Number of data

m = number of sample

∴ MSE = SSE/(n - m)

Question 73

The mean square for treatment is 9. The mean square for error is 4. Calculate the F-statistic.

  1. AOption (a)

    1.5

  2. BOption (b)

    2.25

  3. COption (c)

    0.44

  4. DOption (d)

    0.66

View answer & explanation

Correct answer

Answer: (b)B.

2.25

Why this answer is correct

Given

S12 = 9

S22 = 4

S12 = mean square for treatment

S22 = Mean square for error

Formula

F - statistic = S12/S22

Calculation

F - statistic = 9/4

∴ F - statistic is 2.25

Question 74

An ANOVA procedure is used for data that was obtained from four sample groups each comprised of five observations. The degrees of freedom dF1 and dF2 for the critical value of F are _________ respectively.

  1. AOption (a)

    3 and 16

  2. BOption (b)

    3 and 19

  3. COption (c)

    4 and 16

  4. DOption (d)

    4 and 19

View answer & explanation

Correct answer

Answer: (a)A.

3 and 16

Why this answer is correct

Calculation

Degree of freedom df1 = (c - 1)

⇒ (4 - 1)

∴ Degree of freedom df1 = 3

⇒ Degree of freedom df2 = c(r - 1)

⇒ 4(5 - 1)

∴ Degree of freedom df2 = 16

∴ The degrees of freedom dF1 and dF2 for the critical value of F are  3 and 16

Question 75

When an analysis of variance is performed on samples drawn from k populations, the mean square between treatments (MSTR) is ___________. (Where SSTR is treatment sum of squares and SST is total sum of squares.)

  1. AOption (a)

    SSTR/(k - 1)

  2. BOption (b)

    SST/(k - 1)

  3. COption (c)

    SSTR/(k+1)

  4. DOption (d)

    SST/k

View answer & explanation

Correct answer

Answer: (a)A.

SSTR/(k - 1)

Why this answer is correct

Concept

In one way classification model of ANOVA MSC = SSC/C - 1

MSC = mean sum of square between samples

SSC = sum of squares between samples

c = number of populations

Using the formula MSC = SSC/(C - 1) we can write

∴ MSTR = SSTR/(K - 1)

Question 76

Convert the annual trend equation Y = a + bX into monthly trend equation.

  1. AOption (a)

    Y = a/12 + (b/12)X

  2. BOption (b)

    Y = 12a + bX

  3. COption (c)

    Y = a/12 + (b/144)X

  4. DOption (d)

    Y = a + 12bX

View answer & explanation

Correct answer

Answer: (c)C.

Y = a/12 + (b/144)X

Why this answer is correct

Concept

From annual trend equations, we can obtain monthly trend equations without any loss in accuracy. When Y units are annual totals then an

annual trend equation can be converted into an equations of monthly totals by dividing the computed constant a by 12 and value of b by 144

because the data are sums of 12 months hence, 'a' and 'b' must be divided by 12 and 'b; is again divided by 12 so that the time units (X will

be months as well as, 'b' would give monthly increments)

∴ The monthly trend equation becomes y = (a/12) + (b/144)X

Question 77

What is the shape of the second degree trend equation?

  1. AOption (a)

    Hyperbolic

  2. BOption (b)

    Parabolic

  3. COption (c)

    Exponential

  4. DOption (d)

    Sinusoidal

View answer & explanation

Correct answer

Answer: (b)B.

Parabolic

Why this answer is correct

Explanation

The second degree trend equation is given by Y = a + bx + Cx2

∴ The shape of the second degree trend equation is barabolic

Question 78

If the sales (Y) Vs time (X) trendline with 2010 as origin is Y = 16.25 + 1.25X, then what will be the trendline with 2015 as origin?

  1. AOption (a)

    Y = 10 + 1.25X

  2. BOption (b)

    Y = 22.5 + 6.25X

  3. COption (c)

    Y = 10 + 6.25X

  4. DOption (d)

    Y = 22.5 + 1.25X

View answer & explanation

Correct answer

Answer: (d)D.

Y = 22.5 + 1.25X

Why this answer is correct

Explanation

With 2010 as origin the trendline equation is given Y = 16.25 + 1.25x

Now if we take 2015 as the origin then the difference is 2015 - 2010 = 5

∴ The equation of the trendline will be Y = 16.25 + 1.25(x + 5)

∴  The equation of the trendline will be Y = 22.50 + 1.25x

Question 79

If the sales (Y) trend is captured by the equation Y = 500 + 20t - t2 then the maximum sales will be achieved when the time t = ________ years .

  1. AOption (a)

    20

  2. BOption (b)

    5

  3. COption (c)

    15

  4. DOption (d)

    10

View answer & explanation

Correct answer

Answer: (d)D.

10

Why this answer is correct

Explanation

For the sales Y, the trend equation is given by

⇒ y = 500 + 20t - t2

⇒ dy/dt = 20 - 2t

For maximum sales dy/dt = 0

⇒ 20 - 2t = 0

⇒ t = 10

∴ The maximum sales will be achieved when time is 10 years

Question 80

Y = 500 + 0.75 t - 2.5 t2 represents the trend for output of a copper mine with 2010 as origin. Unit of Y is tonnes and unit of t is year. What will be the mine's copper output (in tonnes) in the year 2020?

  1. AOption (a)

    185.5

  2. BOption (b)

    346.5

  3. COption (c)

    257.5

  4. DOption (d)

    742.5

View answer & explanation

Correct answer

Answer: (c)C.

257.5

Why this answer is correct

Explanation

The trend equation for output of a copper mine with 2010 as origin is given as

⇒ Y = 500 + 0.75t - 2.5t2

Now, new origin 2020, then trendline

⇒ replace t = t + 10

⇒ Y = 500 + 0.75(t + 10) - 2.5(t + 10)2

⇒ Y = 500 + 0.75t + 7.5 -2.5(t2 + 100 +  20t)

⇒ Y = 500 + 0.75t + 7.5 - 2.5t2 - 250 - 50t

⇒ Y = 257.5 - 49.2t - 2.5t2

∴ This is origin 2.20 trendline. So to calculate production at this origin take t = 0

⇒ Y = 257.5 tonnes

Question 81

The fitted annual sales trend is Yt = 180 e0.2t. (Where t is in years and Y is in Rs lakhs) On average, sales are ___________absolute amount each year.

  1. AOption (a)

    rising by a declining

  2. BOption (b)

    falling by a declining

  3. COption (c)

    falling by an increasing

  4. DOption (d)

    rising by an increasing

View answer & explanation

Correct answer

Answer: (d)D.

rising by an increasing

Why this answer is correct

Explanation

The fitted annual sales trend is Yt = 180e0.2t

The t is always positive

⇒ ex = 1 + x + x2/2! + x3/3! + -------

∴ Yt is rising by a increasing absolute amount

Question 82

A pattern of variation of a time series that repeats every year is called ___________.

  1. AOption (a)

    Cyclical

  2. BOption (b)

    Trend

  3. COption (c)

    Hyperbolic

  4. DOption (d)

    Seasonal

View answer & explanation

Correct answer

Answer: (d)D.

Seasonal

Why this answer is correct

Explanation

Seasonal variations are those periodic movements in business activity which occur regularly every year and have their origin in the nature of the year itself

∴ Those variations appear during a period of 12 months they can be predicted fairly accurately

∴ Option (4)  is correct option

Question 83

If the moving average for the year 2010 is 23.6, calculate the moving average for the year 2011 using the data from the given table?

YearSales (in Rs Lakhs)
200520
200622
200723
200824
200921
201024
201127
201222
201330
201428
201532
  1. AOption (a)

    24.33

  2. BOption (b)

    24

  3. COption (c)

    26.33

  4. DOption (d)

    24.8

View answer & explanation

Correct answer

Answer: (d)D.

24.8

Why this answer is correct

Shortcut Trick

Identify the period of moving average by calculating the sum for 2010.

Sum (2010) = 23.6 × n. Checking n = 5: (22+23+24+21+24) = 114. Average = 114 ÷ 5 = 22.8 (No).

Checking 5-year moving average centered at 2010: (24+21+24+27+22) = 118. Average = 118 ÷ 5 = 23.6 (Matches).

For 2011 average, slide the window by one year: 2009 to 2013.

New Sum = 118 − 2008 value (24) + 2013 value (30) = 118 + 6 = 124.

New Average = 124 ÷ 5 = 24.8.

∴ The correct answer is 24.8.

Alternate Method

Given: Moving average for 2010 is 23.6. We need to find the moving average for 2011.

Formula Used: Moving Average = Sum of values in period ÷ Number of years (n)

⇒ Moving average for 2010 (5-year centered) = (Sales2008 + Sales2009 + Sales2010 + Sales2011 + Sales2012) ÷ 5

⇒ Sum for 2010 = 24 + 21 + 24 + 27 + 22 = 118

⇒ Average for 2010 = 118 ÷ 5 = 23.6 (Given condition satisfied)

⇒ For the year 2011, the 5-year period is 2009 to 2013.

⇒ Sum for 2011 = Sales2009 + Sales2010 + Sales2011 + Sales2012 + Sales2013

⇒ Sum for 2011 = 21 + 24 + 27 + 22 + 30 = 124

⇒ Moving Average for 2011 = 124 ÷ 5

⇒ Moving Average for 2011 = 24.8

∴ The correct answer is 24.8.

Additional Information

Simple Moving Average (SMA)

A calculation used to analyze data points by creating a series of averages of different subsets of the full data set to smooth out short-term fluctuations.

Odd vs Even Period

For odd periods (3, 5, 7), the average is placed against the middle year. For even periods (4, 6), a centered moving average is often required to align with a specific year.

Trend Analysis

Moving averages are primarily used in time series analysis to identify long-term trends by eliminating seasonal or irregular variations.

Question 84

The linear trend equation developed for the annual sales Y (in Rs lakhs) of ABC Manufacturing Company is Y = 500 + 6t, where t is in years. By how much are sales increasing per year?

  1. AOption (a)

    Rs 6,00,000

  2. BOption (b)

    6 percent

  3. COption (c)

    6 times the number of years

  4. DOption (d)

    in multiples of 6

View answer & explanation

Correct answer

Answer: (a)A.

Rs 6,00,000

Why this answer is correct

Explanation

The trend equations for the annual sales is given as Y = 500 + 6t

Compare this equation with linea trend equation y = a + bt

b = The average change in the dependent variable for each unit change in time

∴ Increase in sales per year = 6 lakhs

Question 85

For the linear trend equation Y = a + bt, which symbol represents the average change in the dependent variable for each unit change in time?

  1. AOption (a)

    a

  2. BOption (b)

    t

  3. COption (c)

    Y

  4. DOption (d)

    b

View answer & explanation

Correct answer

Answer: (d)D.

b

Why this answer is correct

Given

The linear trend equation Y = a + bt

Calculation

After differentiate

dy/dt = b

∴ The average change in the dependent variable (y) for each unit change in time is b

Question 86

If the trend equation to forecast demand Y (in Rs lakhs) for the required month (t) is Y = 100 + 20t - 5t2. What is the seasonally adjusted demand forecast for month 3 for which the corresponding seasonal index is 1.25?

  1. AOption (a)

    143.75

  2. BOption (b)

    115

  3. COption (c)

    92

  4. DOption (d)

    123.25

View answer & explanation

Correct answer

Answer: (a)A.

143.75

Why this answer is correct

Given

Seasonal index = 1.25

y = 100 + 20t - 5t2

Formula

Seasonal index = Seasonal adjusted demand/cast demand

Calculation

According to question

t = 3, putting t = 3 in equation we get,

⇒ y = 100 + 20 × 3 - 5 × (3)2

⇒ y = 115

⇒ SDeasonal adjusted index = seasonal index × forecast demand

⇒ 1.25 × 115

∴ The seasonally adjusted demand forecast for month 3 for which the corresponding seasonal index is 1.25 is 143.75

Question 87

Y = 100 - 0.4 t - t2 represents the trend for sales of movie tickets in a multiplex with day before release as origin. Unit of Y is in Rs thousand and unit of t is days. Sales for day 3 are ____________ than sales of day 1.

  1. AOption (a)

    8.9% greater

  2. BOption (b)

    9.8% lesser

  3. COption (c)

    8.9% lesser

  4. DOption (d)

    9.8% greater

View answer & explanation

Correct answer

Answer: (c)C.

8.9% lesser

Why this answer is correct

1  - Given

Y = 100 - 0.4t - t2

Calculation

Sales of day 1 = 100 - 0.4 × 1 - 1

⇒ 100 - 1.4

⇒ 98.6 unit

Sales of days 3

⇒ 100 - 0.4 × 3 - 9

⇒ 100 - 10.2

⇒ 89.8 units

Hence, the sales of day 3 is lesser than that of the day 1 and less percentage

⇒ (98.6 - 89.8)/98.6 × 100

∴ 8.9% lesser

Question 88

If the quarterly trend equation is given as Y = a + bX, then the annual trend equation will be ______________.

  1. AOption (a)

    Y = 4a + 4bX

  2. BOption (b)

    Y = 4a + bX

  3. COption (c)

    Y = a + 4bX

  4. DOption (d)

    Y = 4a + 48bX

View answer & explanation

Correct answer

Answer: (d)D.

Y = 4a + 48bX

Why this answer is correct

Explanation

The given trend quarterly equation is given as y = a + bx

For determining the annual trend equation a will be multiplied by 4 and b will be multiplied by 4 × 12 = 48

∴ The annual trend equation will be Y = 4a + 48bX

Question 89

The last period’s sales forecast was Rs 100 lakhs and demand was Rs 90 lakhs. What is the simple exponential smoothing sales forecast (in Rs lakhs) with alpha of 0.4 for the next period?

  1. AOption (a)

    94

  2. BOption (b)

    106

  3. COption (c)

    96

  4. DOption (d)

    104

View answer & explanation

Correct answer

Answer: (c)C.

96

Why this answer is correct

Given

Last period sales forecast = 100 lakhs

Simple exponential sales forecast (α) = 0.4 for next year

Calculation

Error in forecast = 90 - 100

⇒ - 10

⇒ St = St - 1 + α(et)

⇒ 100 + (0.4)( - 10)

⇒ St = 100 - 4

∴ The simple exponential smoothing sales forecast (in Rs lakhs) with alpha of 0.4 for the next period is 96

Question 90

If the trendline with 2016 as origin is Y = 125 - 3t -2t2, then what will be the trendline with 2014 as origin?

  1. AOption (a)

    Y = 127 + 5t -2t2

  2. BOption (b)

    Y = 123 + 5t -2t2

  3. COption (c)

    Y = 125 + 7t -2t2

  4. DOption (d)

    Y = 127 + 7t -2t2

View answer & explanation

Correct answer

Answer: (b)B.

Y = 123 + 5t -2t2

Why this answer is correct

Given

Trendline with 2016 as origin Y = 125 - 3t - 2t2

Calculation

Since (2016 - 2014) = 2

The origin is shifted backyard by 2 years

∴ The trend equation w.r.t. 2014 as the origin will be

⇒ Y = 125 - 3(t - 2) -2(t - 2)2

⇒ y = 125 - 3t + 6 - 2(t2 - 4t + 4)

∴ y = 123 + 5t - 2t2

Question 91

Use the data given in the table to calculate the Price Index using Laspeyres Formula.

ItemP0Q0P1Q1
X8354
Y9564
Z124106
  1. AOption (a)

    137.6

  2. BOption (b)

    72.65

  3. COption (c)

    122.3

  4. DOption (d)

    81.7

View answer & explanation

Correct answer

Answer: (b)B.

72.65

Why this answer is correct

Formula

Laspeyres index = ∑(p1qo/∑poqo) ×100

Calculation

∑p1qo = 15 + 30+ 40

⇒ 85

∑poqo = 24 + 45 + 48

⇒ 117

⇒ Price index = (85/117) × 100

∴The Price Index using Laspeyres Formula is 72.65

Question 92

From the prices and quantities of the base and current year Laspeyres and Bowley Price Indices were calculated as 124 and 130 respectively. Find the Paasche price index for the same data.

  1. AOption (a)

    127

  2. BOption (b)

    136

  3. COption (c)

    118

  4. DOption (d)

    121

View answer & explanation

Correct answer

Answer: (b)B.

136

Why this answer is correct

Given

Laspeyres and Bowley Price Indices are 124 and 130

Concept

According to Dorbish and bowley the simple arithmetic mean of two indices namely Laspeyres and Passche gives the Bowley price index

P01 = (L + P)/2

P01 = Bowley price indices

L =  Laspeyres Index

P = Passche INDEX

Calculation

According to question

⇒ 130 = (124 + P)/2

⇒ 260 = 124 + P

⇒ P = 136

∴ The Paasche price index for the same data IS 136

Question 93

Paasche Quantity Index is given by the formula ___________.

  1. AOption (a)

    (∑QnPo)/(∑QoPo)

  2. BOption (b)

    (∑QnPn)/(∑QoPn)

  3. COption (c)

    (∑QoPn)/(∑QoPn)

  4. DOption (d)

    (∑QnPn)/(∑QnPo)

View answer & explanation

Correct answer

Answer: (b)B.

(∑QnPn)/(∑QoPn)

Why this answer is correct

Calculation

In constructing quantity index number, we measure the changes in quantities and when we use price or value as weight. Quantity indices can be easily obtained by changing p to q and q to p 

∴ Paasche quantity indices is (∑QnPn)/(∑QoPn**)** 

Qn = Current year quantity

Pn = Price index for current year

QO = Quantity for base year

Question 94

The index number for the price of diesel in 2015 was 125 and in 2016, it was 140, on a base year of 2011. What is the percent increase in price of diesel from 2015 to 2016?

  1. AOption (a)

    25

  2. BOption (b)

    40

  3. COption (c)

    12

  4. DOption (d)

    15

View answer & explanation

Correct answer

Answer: (c)C.

12

Why this answer is correct

Given

The index number for the price of diesel in 2015 was 125 and in 2016, it was 140, on a base year of 2011

Formula

% change = [(Final - initial)/initial] × 100

Calculation

% change = (140 - 125)/125] × 100

⇒ [15/125] × 100

∴ The percent increase in price of diesel from 2015 to 2016 is 12%

Question 95

A worker earned Rs 15,000 per month in 2015, when the Consumer Price Index was 250. If the base period is 2000, what are his earnings per month in 2015 in terms of value of Rs. in the year 2000?

  1. AOption (a)

    Rs 37,500

  2. BOption (b)

    Rs 6,000

  3. COption (c)

    Rs 10,000

  4. DOption (d)

    Rs 27,500

View answer & explanation

Correct answer

Answer: (b)B.

Rs 6,000

Why this answer is correct

Given

A worker earned Rs 15,000 per month in 2015

the Consumer Price Index was 250

Calculation

Let the earning per month be x

According to question

⇒ 1500 = x × 250/100

⇒ x = (15000 × 100)/250

⇒ x = Rs.6000

∴ His earnings per month in 2015 in terms of value of Rs. in the year 2000 is Rs.6000

Question 96

The price index in 2016 is 116 using 2011 as base year. What will be 2011 price index if base year is changed to 2016?

  1. AOption (a)

    134.5

  2. BOption (b)

    86.2

  3. COption (c)

    84

  4. DOption (d)

    132

View answer & explanation

Correct answer

Answer: (b)B.

86.2

Why this answer is correct

Given

The price index in 2016 is 116 using 2011 as base year

Formula

Index number = (index number for base year/index number of current year) × 100

Calculation

Case 1 - Base year = 2011

⇒ Current year = 2016

⇒ Price index = 116

⇒ Price index = (Index of 2016/index of 2011) × 100

⇒ 116 = (Index of 2016/index of 2011) × 100

⇒ (Index of 2016/index of 2011) = 116/100    ------(i)

Case 2

⇒ Base year = 2016

⇒ Current year = 2011

⇒ Price index = (Index of 2011/index of 2016) × 100

⇒ Price index = 1/(Index of 2016/index of 2011) × 100

From eq(i)

⇒ Price index = (1/116/100) × 100

⇒ 100 × 100/116

∴The price index in 2011 is 86.2 if base year is changed to 2016

Question 97

The Fisher's Index __________.

  1. AOption (a)

    satisfies neither the Time Reversal Test nor the Factor Reversal Test

  2. BOption (b)

    satisfies the Time Reversal Test but not the Factor Reversal Test

  3. COption (c)

    satisfies both the Time Reversal Test as well as the Factor Reversal Test

  4. DOption (d)

    satisfies the Factor Reversal Test but not the Time Reversal Test

View answer & explanation

Correct answer

Answer: (c)C.

satisfies both the Time Reversal Test as well as the Factor Reversal Test

Why this answer is correct

Explanation

Fisher price index = √(Laspeyres × paasche's index)

⇒ √(∑(pnqo/∑poqo) × ∑(pnqn/∑poqn) × 100

Here,pn = Price for current year

Po = Price for base year

Qn = Quantity for current year

Qo = Quantity for base year

⇒ Fisher's ideal index = P01 × P10 = 1

∴ Fisher's ideal index satisfy the time-reversal test

⇒ P01 × P10 = ∑P1Q0/∑P0Q0

∴ The factor reversal test is satisfied by Fisher's ideal index

Question 98

Calculate Fisher's Price Index (in %) using the following data:

∑QoPn = 2700, 

∑QnPn= 2250, 

∑QoPo= 2750 and 

∑QnPo= 2100

  1. AOption (a)

    157.1

  2. BOption (b)

    63.6

  3. COption (c)

    102.5

  4. DOption (d)

    95

View answer & explanation

Correct answer

Answer: (c)C.

102.5

Why this answer is correct

Formula 

Fisher price index = √(Laspeyres × paasche's index)

⇒ √(∑(pnqo/∑poqo) × ∑(pnqn/∑poqn) × 100

Here,pn = Price for current year

Po = Price for base year

Qn = Quantity for current year

Qo = Quantity for base year

Calculation

Fisher's price index = √(2700/2750 × 2250/2100) × 100

⇒ √(0.982 × 1.071) × 100

⇒ 1.025 × 100

∴ Fisher's price index is 102.5

Question 99

Find the Value Index (in %) using the following data:

∑QoPn = 2500,

∑QnPn = 2750, 

∑QoPo = 2250 and 

∑QnPo = 2000.

  1. AOption (a)

    122.2

  2. BOption (b)

    125

  3. COption (c)

    112.5

  4. DOption (d)

    137.5

View answer & explanation

Correct answer

Answer: (a)A.

122.2

Why this answer is correct

Formula 

Value index = (∑QnPn /∑QoPo) × 100

Qn = Quantity at current price

Qo = Quantity at base price

Po = Price at base price

Pn = Price at current price

Calculation

Value index = 2750/2250 × 100

∴ Value index is 122.2

Question 100

If the ratio Laspeyres and Paasche price indices is 75 : 77, then find the value of P using the data given in the table.

ItemBase YearCurrent year
PriceQuantityPriceQuantity
X1081210
Y56P5
  1. AOption (a)

    5

  2. BOption (b)

    6

  3. COption (c)

    4

  4. DOption (d)

    7

View answer & explanation

Correct answer

Answer: (c)C.

4

Why this answer is correct

Calculation

itemsP0Q0PnQnPnQ0P0Q0PnQnP0Qn
x10812109680120100
y56P56p305p25
Total1518P + 121596 + 6p110120 + 5p125

Lespeyre's index L = (∑PnQ0/∑P0Q0) × 100

⇒ L = [(96 + 6p)/110)] × 110

Paasche's index P= ∑PnQn/∑P0Qn] × 100

⇒ P = [(120 + 5p)/125] × 100

Given = L/P = 75/77

⇒ [(96 + 6p)/110)] × 110/ [(120 + 5p)/125] × 100 = 75/77

⇒ 125(96 + 6p)/110(120 + 5p) = 75/77

⇒ 7(96 + 6p) = 6(120 + 5p)

⇒ 672 + 42p = 720 + 30p

⇒ 12p = 48

∴ The value of p is 4

100 questions in the full paper