Previous Year Paper

SSC CGL Tier-II (JSO) 2022 Official Paper (Held On: 4 March 2023) (Previous Year Paper)

Held in 2022

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Quantitative Aptitude (100 questions)

Question 1

Which of the following is a merit of data tabulation? 

  1. AOption (a)

    Data tabulation helps in revealing the patterns. 

  2. BOption (b)

    Data tabulation simplifies complex data. 

  3. COption (c)

    Data tabulation facilitates comparison. 

  4. DOption (d)

    All of the options 

View answer & explanation

Correct answer

Answer: (d)D.

All of the options 

Why this answer is correct

The correct answer is All of the options. 

Key Points

  • Tabulation refers to the systematic arrangement of data in columns or rows, usually in a tabular form, to facilitate analysis and comparison. It involves organizing and presenting data in a structured manner, making it easier to understand and draw conclusions from the information.
  • Tabulation is commonly used in various fields, including statistics, research, surveys, and data analysis. It allows for the efficient representation of data, enabling individuals to summarize, analyze, and interpret information quickly and accurately.
  • Merits of tabulation are: 
  • Clarity and organization: Tabulation provides a clear and organized structure for presenting data. It helps to avoid clutter and confusion by systematically arranging information in columns and rows. This makes it easier for readers to understand and interpret the data.
  • Easy comparison: Tabulation allows for the easy comparison of different variables or categories. By placing related information side by side, it becomes simpler to identify patterns, trends, and differences between data points. This aids in drawing meaningful insights and conclusions.
  • Efficient data analysis: Tabulation facilitates data analysis by providing a concise summary of information. It allows researchers or analysts to perform calculations, statistical operations, and computations more efficiently. The organized format of the table simplifies complex calculations and enables quick data manipulation.
  • Accessibility and readability: Tables are a widely understood and familiar format for presenting information. They provide a structured layout that is easily accessible to a wide range of audiences, including those who may not have in-depth knowledge of the subject matter. Tables also allow for the inclusion of headings, footnotes, and other explanatory notes, enhancing the readability and comprehension of the data.
  • Visual representation: Tabulation offers a visual representation of data, which can make it easier to spot patterns and trends. By using elements like color coding, shading, or highlighting, tables can emphasize important information or draw attention to specific data points. This visual enhancement aids in quickly understanding and interpreting the data.
  • Flexibility and adaptability: Tabulation allows for flexibility in the arrangement and organization of data. It can accommodate a wide range of variables, categories, and data types. Tables can be expanded or modified easily to include additional information or accommodate changing requirements, making them adaptable to different analytical needs.
  • Effective communication: Tabulation is an effective means of communicating data and findings. It enables concise and structured reporting, making it easier for others to comprehend and utilize the information. Tables can be included in reports, presentations, research papers, or publications to convey data-driven insights in a clear and concise manner.

​Therefore, all of the above are the merits of data tabulation.

Question 2

In seasonal variations, the duration of time is not more than: 

  1. AOption (a)

    two years 

  2. BOption (b)

    one year  

  3. COption (c)

    five years

  4. DOption (d)

    three years

View answer & explanation

Correct answer

Answer: (b)B.

one year  

Why this answer is correct

The correct answer is one year. 

Key Points

  • In seasonal variations, the duration of time typically spans one year. Seasons are cyclical patterns that occur within a yearly cycle. They are influenced by factors such as the tilt of the Earth's axis and its orbit around the Sun.
  • In most regions, the four primary seasons—spring, summer, autumn (fall), and winter—each last approximately three months. These seasons repeat annually, creating a predictable pattern of changes in temperature, weather conditions, and the growth and behavior of plants and animals.
  • While there can be variations in the exact timing and intensity of seasons depending on the geographic location, the general timeframe of one year is typically used to define the duration of seasonal variations.
  • For instance, temperatures over the course of five years can be observed to understand climate patterns, predicting weather conditions, and planning activities accordingly.

Question 3

If a constant is added to each observation of a data set, then which of the following measures of dispersion will change?  

  1. AOption (a)

    Coefficient of variation 

  2. BOption (b)

    Standard Deviation

  3. COption (c)

    Mean deviation about mean 

  4. DOption (d)

    Range 

View answer & explanation

Correct answer

Answer: (a)A.

Coefficient of variation 

Why this answer is correct

The correct answer is the coefficient of variation. 

Key Points 

  • When a constant is added to each observation of a data set, the Coefficient of Variation (CV) will change.
  • The Coefficient of Variation measures relative variability and is calculated as the ratio of the standard deviation to the mean, expressed as a percentage. Adding a constant to each observation will affect both the mean and the standard deviation. As a result, the ratio of the standard deviation to the norm, which is the Coefficient of Variation, will also change.
  • The Coefficient of Variation is commonly used to compare the relative variability between different data sets or variables. When a constant is added to each observation, the relative variability, as measured by the Coefficient of Variation, will be altered. Therefore, the Coefficient of Variation will change when a constant is added to each observation in a data set.

Additional Information

  • To calculate the Coefficient of Variation, divide the standard deviation by the mean and then multiply the result by 100 to express it as a percentage. The CV provides a relative measure of variability, allowing for comparison of the dispersion of different datasets or variables, regardless of their scales or units of measurement.
  • CV = (Standard Deviation / Mean) * 100; Standard Deviation is the measure of dispersion that quantifies the average amount by which each data point varies from the mean. Mean is the average value of the data set. It is important to ensure that the mean and standard deviation are calculated based on the same set of data or population.

Question 4

Which of the following is NOT true for seasonal variation? 

  1. AOption (a)

    Variation in a time series within one year 

  2. BOption (b)

    Repeated irregularly 

  3. COption (c)

    Caused by public holidays 

  4. DOption (d)

    Caused by rainfall 

View answer & explanation

Correct answer

Answer: (b)B.

Repeated irregularly 

Why this answer is correct

The correct answer is Repeated irregularly. 

Key Points 

  • Seasonal variation is characterized by a repeated pattern within a specific time frame, typically one year. It follows a regular and predictable pattern as certain factors, such as the Earth's tilt and orbit around the Sun, influence the changes in weather, temperature, and other seasonal phenomena.
  • The other statements are true for seasonal variation:
  • Variation in a time series within one year: Seasonal variation refers to the changes or fluctuations observed in a time series data over a year.
  • Caused by public holidays: Seasonal variation can be influenced by public holidays that occur at specific times of the year. These holidays often impact consumer behaviour, sales patterns, and other economic factors.
  • Caused by rainfall: Seasonal variation can also be influenced by rainfall patterns. For example, some regions experience wet seasons and dry seasons, leading to variations in precipitation throughout the year. This, in turn, affects factors such as agricultural activities, water availability, and ecosystem dynamics.

Additional Information

  • Seasonal variation is a fundamental aspect of many natural and human systems. It plays a crucial role in various fields such as meteorology, agriculture, economics, and tourism. Understanding and analyzing seasonal patterns are important for planning and decision-making in these domains.
  • In meteorology, seasonal variation helps in predicting weather patterns and identifying climate trends.
  • In agriculture, seasonal variation is crucial for crop planning, irrigation management, and pest control.
  • In economics, seasonal variation affects consumer behaviour and spending patterns. Retailers, for example, rely on seasonal variations to plan their inventory, marketing campaigns, and sales strategies.
  • In tourism, seasonal variation can have a significant impact on destination choices, travel patterns, and accommodation prices.
  • Overall, seasonal variation provides valuable insights into the cyclical nature of various phenomena, allowing us to anticipate changes, make informed decisions, and adapt our activities accordingly.

Question 5

The Karl Pearson’s correlation coefficient (r) between two random variables, X and Y, is computed by: 

  1. AOption (a)

    r(X,Y) = Cov(X,Y)*σXσY

  2. BOption (b)

    r(X,Y)=σXσYCov(X,Y)\rm r(X,Y)=\frac{\sigma_X \sigma _Y}{Cov(X,Y)}

  3. COption (c)

    r(X,Y)=Cov(X,Y)σXσY\rm r(X,Y)=\frac{Cov(X,Y)}{\sigma_X \sigma _Y}

  4. DOption (d)

    r(X,Y)=Cov(X,Y)(σXσY)2\rm r(X,Y)=\frac{Cov(X,Y)}{(\sigma_X \sigma _Y)^2}

View answer & explanation

Correct answer

Answer: (c)C.

r(X,Y)=Cov(X,Y)σXσY\rm r(X,Y)=\frac{Cov(X,Y)}{\sigma_X \sigma _Y}

Why this answer is correct

The correct answer is r(X,Y)=Cov(X,Y)σXσY\rm r(X,Y)=\frac{Cov(X,Y)}{\sigma_X \sigma _Y}. 

Key Points

  • The Karl Pearson's correlation coefficient (r) between two random variables, X and Y, is computed using the formula:  r(X,Y)=Cov(X,Y)σXσY\rm r(X,Y)=\frac{Cov(X,Y)}{\sigma_X \sigma _Y}
  • Cov(X, Y) represents the covariance between variables X and Y. It measures how the variables vary together.
  • σX is the standard deviation of variable X, which measures the variability or dispersion of X.
  • σY is the standard deviation of variable Y, which measures the variability or dispersion of Y.
  • The correlation coefficient (r) measures the strength and direction of the linear relationship between X and Y. It ranges between -1 and 1, where:
  • r = 1 indicates a perfect positive linear relationship, where X and Y increase or decrease together.
  • r = -1 indicates a perfect negative linear relationship, where X and Y have an inverse relationship.
  • r = 0 indicates no linear relationship between X and Y.
  • The correlation coefficient not only provides information about the strength and direction of the relationship but also helps in assessing the degree to which X and Y vary together when compared to their individual variabilities (given by the standard deviations).

Question 6

In a class of 15 students, 5 fail in a test. Marks of remaining 10 students are 9, 6, 8, 7, 8, 9, 5, 6, 7 and 4. The median of marks of all 15 students is:

  1. AOption (a)

    5

  2. BOption (b)

    6

  3. COption (c)

    7

  4. DOption (d)

    4

View answer & explanation

Correct answer

Answer: (b)B.

6

Why this answer is correct

The correct answer is 6. 

Key Points

Five students failed the test. Their scores cannot be derived. But we can assume that one or more students might get the same marks.

Let's denote the test scores received by the failed students as F, where F = 0, 1, 2, 3. As the score of the students who passed the test starts from 4, F must be less than 4. 

Students who passed the test have scored 9, 6, 8, 7, 8, 9, 5, 6, 7 and 4. 

Arranging their scores in ascending order, we have: F, F, F, F, F, 4, 5, 6, 6, 7, 7, 8, 8, 9, 9 

n = total number of students = 15, an odd number. 

The median in the series would be (n+1)2(n + 1) \over2th term = (15 + 1) / 2 = 16 / 2 = 8th number. 

The 8th number in the series is 6.

Question 7

The analysis of variance technique was developed by:  

  1. AOption (a)

    RA Fisher 

  2. BOption (b)

    Karl Pearson 

  3. COption (c)

    PC Mahalanobis 

  4. DOption (d)

    Irving Fisher 

View answer & explanation

Correct answer

Answer: (a)A.

RA Fisher 

Why this answer is correct

The correct answer is R A Fisher 

Key Points 

  • The analysis of variance (ANOVA) technique was developed by Ronald Aylmer Fisher, commonly known as R.A. Fisher. Fisher was a British statistician and geneticist who made significant contributions to the field of statistics, particularly in experimental design and inference.
  • Fisher introduced the concept of variance analysis in his seminal work "The Design of Experiments" published in 1935. ANOVA is a statistical method used to analyze the differences between group means and determine whether these differences are statistically significant. It is widely used in various fields, including biology, psychology, social sciences, and engineering, to compare multiple groups or treatments.
  • Fisher's work revolutionized the field of statistics and had a profound impact on experimental design, hypothesis testing, and data analysis. He received the Nobel Prize in Physiology or Medicine in 1938 for his contributions to the field of genetics and statistics.

Hence, the analysis of variance technique was developed by RA Fisher.

Question 8

For the series 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, the minimum possible value of Σi=1n(xi−A)2\rm \Sigma_{i=1}^n(x_i-A)^2 can be attained at:

  1. AOption (a)

    A = 6

  2. BOption (b)

    A = 10

  3. COption (c)

    A = 5.5

  4. DOption (d)

    A = 1

View answer & explanation

Correct answer

Answer: (c)C.

A = 5.5

Why this answer is correct

To find the value of A that minimizes the sum Σi=1n(xi−A)2\rm \Sigma_{i=1}^n(x_i-A)^2, we need to find the value of A that minimizes the squared differences from the elements of series.

For the given series x1, x2, ...., xn, the value of A that maximizes Σi=1n(xi−A)2\rm \Sigma_{i=1}^n(x_i-A)^2, is the mean (average) of the series.

The given series is:

1+2+3+4+5+6+7+8+9+1010=5510=5.5\frac{1+2+3+4+5+6+7+8+9+10}{10}=\frac{55}{10}=5.5

So the value of A that minimizes Σi=1n(xi−A)2\rm \Sigma_{i=1}^n(x_i-A)^2= 5.5

Question 9

Suppose that a sample of 100 independent draws from a normal distribution having unknown mean μ and known variance σ2 = 1 is observed. If the sample mean is 5, then the 95% confidence interval for μ is:

  1. AOption (a)

    (4.84, 6.196)

  2. BOption (b)

    (4.804, 5.196)

  3. COption (c)

    (4.23, 5.19)

  4. DOption (d)

    (4.804, 6.196)

View answer & explanation

Correct answer

Answer: (b)B.

(4.804, 5.196)

Why this answer is correct

The correct answer is (4.804, 5.196).

Key Points 

  • In this scenario, we have a sample of 100 independent draws from a normal distribution with an unknown mean μ and a known variance σ^2 = 1. The sample mean is given as 5, which is the average of the 100 observed values.
  • To estimate the population mean μ, we can construct a confidence interval. A 95% confidence interval means that if we were to take many random samples from the same population and calculate confidence intervals using the same method, approximately 95% of those intervals would contain the true population mean.
  • The confidence interval (4.804, 5.196) represents the range of values that are estimated to contain the true population mean μ with 95% confidence. The lower bound of 4.804 indicates the lower end of the range, and the upper bound of 5.196 indicates the upper end of the range.
  • Therefore, based on the given sample data and the properties of the normal distribution, we can be 95% confident that the true population mean μ falls within the interval (4.804, 5.196).
  • This means that if we were to repeat the sampling process and calculate a new confidence interval each time, approximately 95% of those intervals would contain the unknown true population mean μ.

Additional Information

  • (4.84, 6.196): The upper bound in this option is 6.196, which is outside of the plausible range for the population mean given the sample mean of 5. This interval is too wide and would lead to a wider range of values than what is expected with 95% confidence.
  • (4.23, 5.19): The lower bound in this option is 4.23, which is lower than the plausible range for the population mean given the sample mean of 5. This interval is too narrow and would exclude potential values within the plausible range of the population mean with 95% confidence.
  • (4.804, 6.196): The upper bound in this option is 6.196, which is outside of the plausible range for the population mean given the sample mean of 5. This interval is too wide and would lead to a wider range of values than what is expected with 95% confidence.

Hence, If the sample mean is 5, then the 95% confidence interval for μ is (4.804, 5.196).

Question 10

Consider the following ANOVA table. 

Source of variationDegrees of freedomThe sum of Squares (SS)Mean SSF Ratio
Treatmentsabc5
Error12d20
Total15540

The values of a, b, c and d are, respectively:

  1. AOption (a)

    3, 200, 300 and 240 

  2. BOption (b)

    3, 100, 100 and 240  

  3. COption (c)

    2, 100, 200 and 240  

  4. DOption (d)

    3, 300, 100 and 240  

View answer & explanation

Correct answer

Answer: (d)D.

3, 300, 100 and 240  

Why this answer is correct

The correct answer is 3, 300, 100 and 240  

Key Points

  • From the ANOVA table, we have the following information: 
  • Degrees of freedom for Treatments (a) = 3 Degrees of freedom for Error (b) = d = 12 Degrees of freedom for Total (c) = 15 Sum of Squares (SS) for Treatments = 5 Total SS = 540
  • To determine the missing values, we can calculate the remaining sums of squares:
  • SS for Error = Total SS - SS for Treatments = 540 - 5 = 535
  • Now, let's calculate the Mean SS for Treatments and Mean SS for Error:
  • Mean SS for Treatments = SS for Treatments / Degrees of freedom for Treatments = 5 / 3 = 1.67
  • Mean SS for Error = SS for Error / Degrees of freedom for Error = 535 / 12 = 44.58
  • Therefore, the values for a, b, c, and d are:
  • a = 3, b = 300 (Mean SS for Treatments multiplied by Degrees of freedom for Treatments: 1.67 * 3 = 5), c = 100 (Sum of Squares for Error: 535), d = 240 (Degrees of freedom for Error: 12)

Hence, the values of a, b, c and d are, respectively, 3, 300, 100, and 240.

Question 11

If the mean, mode and quartile deviation of a distribution is 2, 7 and 3, respectively, then Karl Pearson's coefficient of skewness is given by:  

  1. AOption (a)

    3/2

  2. BOption (b)

    -10/9

  3. COption (c)

    -3/2

  4. DOption (d)

    10/9

View answer & explanation

Correct answer

Answer: (b)B.

-10/9

Why this answer is correct

The correct answer is (- 10/9). 

Key Points

 Skewness (Sk) = (Mean−Mode)S.D.{(Mean - Mode)} \over S.D.

The relationship between Standard Deviation (S.D) and Quartile Deviation (Q.D) is: S.D.=32×Q.D.S. D. = {3\over 2}\times Q.D.  

Therefore, Skewness (Sk) = (Mean−Mode)32×Q.D.{(Mean - Mode)} \over {{3\over 2} \times Q. D.}Or, Sk = 3(2−7)32×3{3 (2 - 7)} \over {{3\over 2} \times 3}

Or, Sk = -10/9

Karl Pearson's coefficient of skewness is (-10/9). 

Important Points There are two formulas, that were developed by Karl Pearson, available to calculate the coefficient of skewness. One uses the mode while the other uses the mean. 

  • Using Mean: Skewness (Sk) = (Mean−Mode)S.D.{(Mean - Mode)} \over S.D.
  • Using Median: Skewness (Sk) = 3(Mean−Median)S.D.{3(Mean - Median)} \over S.D.

Question 12

Index numbers are a type of: 

  1. AOption (a)

    correlation 

  2. BOption (b)

    average 

  3. COption (c)

    regression 

  4. DOption (d)

    dispersion 

View answer & explanation

Correct answer

Answer: (b)B.

average 

Why this answer is correct

The correct answer is average. 

Key Points

  • Index numbers are a specialized average that are expressed in percentage form. They are commonly used to measure and compare changes in variables that are expressed in different units or have different scales of measurement. One of the main purposes of index numbers is to provide a relative measure of change over time. By selecting a base period and assigning it a value of 100, index numbers allow for easy comparison of subsequent periods to the base period.
  • Here's how index numbers work:
  • Selection of Base Period: A specific period is chosen as the base or reference period. The variables in subsequent periods will be compared to this base period.
  • Calculation: The index number for each subsequent period is calculated by dividing the value of the variable in that period by the value in the base period and then multiplying by 100. This rescaling allows the index number to be expressed as a percentage relative to the base period.
  • Interpretation: An index number above 100 indicates an increase or growth compared to the base period, while an index number below 100 indicates a decrease or decline.
  • Index numbers have several advantages in measuring and comparing changes in variables expressed in different units:
  • Standardization: Index numbers allow for the standardization of variables with different scales of measurement. By converting variables to a percentage-based index, they can be directly compared.
  • Relative Comparison: Index numbers provide a relative measure of change, focusing on the percentage change rather than the absolute values. This allows for meaningful comparisons of variables over time.
  • Comparison Across Categories: Index numbers can be used to compare changes across different categories or groups. For example, they can be used to compare price changes in different regions or the performance of different sectors in the economy.
  • In summary, index numbers are a specialized average expressed in percentage form. They are used to measure and compare changes in variables that are expressed in different units or have different scales of measurement. They provide a standardized and relative measure of change, allowing for meaningful comparisons over time and across categories.

Question 13

If the correlation between X and Y is 0.3, then correlation coefficient between 2X and 3Y is:  

  1. AOption (a)

    0.3

  2. BOption (b)

    0.4

  3. COption (c)

    0.2

  4. DOption (d)

    0.5

View answer & explanation

Correct answer

Answer: (a)A.

0.3

Why this answer is correct

The correct answer is 0.3.

Key Points 

  • The correlation coefficient between 2X and 3Y is also 0.3.
  • When a variable is multiplied by a constant, such as multiplying X by 2 and Y by 3, it does not affect the correlation coefficient between the two variables. The correlation coefficient is not affected by the change of scale or origin.
  • The correlation coefficient measures the strength and direction of the linear relationship between two variables, and scaling or multiplying the variables by a constant does not change that relationship.

Hence if the correlation between X and Y is 0.3, the correlation coefficient between 2X and 3Y would still be 0.3.

Question 14

If the mean deviation of a set of observations is 15, then the value of quartile deviation is:  

  1. AOption (a)

    13.5

  2. BOption (b)

    10.5

  3. COption (c)

    12.5

  4. DOption (d)

    11.5

View answer & explanation

Correct answer

Answer: (c)C.

12.5

Why this answer is correct

The correct answer is 12.5. 

Key Points Given,

The mean deviation of a set of observations (MD) is 15. 

MD = 45σ{4 \over 5} σ , where σσ is the standard deviation 

Or, σ=45×MDσ = {4 \over 5} \times MD ______ (1)

The value of quartile deviation (QD) = 23σ{2 \over 3} σ ________ (2)

Combining (1) and (2), QD =23×54×15= {2 \over 3} \times {5 \over 4} \times 15, as MD = 15 

Or, QD = 12.5 

Hence, the value of the quartile deviation is 12.5. 

Question 15

Envelope I contains 2 black and 3 red sheets. while envelope II contains 3 black and 4 red sheets. Out of these two envelopes, one is selected at random and the probability of choosing envelope I is double that of envelope II. If a red sheet is drawn from the selected envelope, then the probability that it has come from envelope II is:  

  1. AOption (a)

    1131\frac{11}{31}

  2. BOption (b)

    1331\frac{13}{31}

  3. COption (c)

    1531\frac{15}{31}

  4. DOption (d)

    1031\frac{10}{31}

View answer & explanation

Correct answer

Answer: (d)D.

1031\frac{10}{31}

Why this answer is correct

The correct answer is 1031{10 \over 31}

Key Points

 Given,

Envelope I contains 2 Black and 3 Red sheets while Envelope II contains 3 Black and 4 Red sheets. 

One envelope is selected at random and it is given probability of choosing envelope I is double that of envelope II. 

Let's denote the events of choosing envelopes I and II respectively as P(I) and P(II). 

As total probability is always 1, P(I) + P(II) = 1

Or, 2 P(II) + P(II) = 1 

Or, P(II) = 1/3 

Thus, P(I) = 2/3

The probability of choosing a red sheet from envelope I is P (R | I) = 3/5 and that from envelope II is P(R | II) = 4/7

According to Bayes' Theorem, the probability that the selected red sheet has come from envelope II is

= P(II)×P(R∣II)P(I)×P(R∣I)+P(II)×P(R∣II) {{P(II)} \times {P(R | II)} \over P(I) \times P(R | I) + P(II) \times P(R|II)}

= 13×4723×35+47×13 {{1 \over 3} \times {4 \over 7} \over {{2\over 3} \times {3 \over 5} + {4 \over 7} \times {1 \over 3}}}

= 103110 \over 31

Hence, if a red sheet is drawn from the selected envelope, then the probability that it has come from envelope II is 103110 \over 31.

Question 16

The component containing the overall upward or downward pattern of the data in an annual time series is: 

  1. AOption (a)

    trend 

  2. BOption (b)

    irregular

  3. COption (c)

    cyclical 

  4. DOption (d)

    Seasonal 

View answer & explanation

Correct answer

Answer: (a)A.

trend 

Why this answer is correct

The correct answer is trend.

Key Points 

  • The component containing the overall upward or downward pattern of the data in an annual time series is called the trend. The trend represents the long-term direction or movement in the data and helps identify whether the series is experiencing growth, decline, or remaining relatively stable over time.
  • It captures the underlying systematic and persistent changes in the time series data, filtering out shorter-term fluctuations and random variations. Analyzing the trend can provide insights into the overall behaviour and direction of the data, which can be useful for forecasting and decision-making purposes.
  • The trend can take various forms, depending on the nature of the data. It can be a linear trend, indicating a steady and consistent increase or decrease over time. For example, a linear upward trend might suggest a series experiencing continuous growth, while a linear downward trend might indicate a decline.
  • The trend can also be nonlinear, exhibiting more complex patterns such as exponential growth or decay, cyclicality, or periodic fluctuations. Nonlinear trends may indicate seasonal or cyclical patterns within the data, where the series exhibits regular, repeating patterns over a specific period, such as monthly, quarterly, or annual cycles.
  • Identifying and analyzing the trend is important in time series analysis and forecasting. It helps in understanding the overall behaviour and direction of the data, enabling the detection of long-term patterns, growth rates, and potential changes in the underlying dynamics.

Hence, the component containing the overall upward or downward pattern of the data in an annual time series is a trend.

Question 17

If the 25th, 50th and 75th percentile of a frequency distribution are equal to 2, 3 and 4, respectively, then the distribution is:

  1. AOption (a)

    positively skewed 

  2. BOption (b)

    negatively skewed 

  3. COption (c)

    J shaped 

  4. DOption (d)

    symmetric 

View answer & explanation

Correct answer

Answer: (d)D.

symmetric 

Why this answer is correct

The correct answer is symmetric. 

Key Points 

  • Based on the given information that the 25th, 50th, and 75th percentiles of a frequency distribution are equal to 2, 3, and 4, respectively, it suggests that the distribution is symmetric.
  • In a symmetric distribution, the values are evenly distributed around the central point, which is typically the median (50th percentile). If the 25th and 75th percentiles are equidistant from the median and have the same value difference, it indicates symmetry in the distribution.
  • In this case, the difference between the 50th percentile (median) and the 25th percentile is 1 (3 - 2), and the difference between the 75th percentile and the median is also 1 (4 - 3). This indicates that the values are symmetrically distributed around the median, with equal spread on both sides.

Therefore, based on the given percentiles, we can conclude that the distribution is symmetric.

Question 18

A parametric distribution with the same mean and variance is: 

  1. AOption (a)

    Gamma Distribution 

  2. BOption (b)

    Geometric Distribution 

  3. COption (c)

    Poisson Distribution 

  4. DOption (d)

    Binomial Distribution 

View answer & explanation

Correct answer

Answer: (c)C.

Poisson Distribution 

Why this answer is correct

The correct answer is Poisson Distribution 

Key Points 

  • The distribution that exhibits the same mean and variance is the Poisson distribution. The Poisson distribution is commonly employed to model the occurrence of rare and independent events within a fixed time or space interval.
  • Mathematically, the mean (μ) and variance (σ^2) in a Poisson distribution are equivalent: μ = σ2.
  • The probability mass function (PMF) of the Poisson distribution is defined as P(X=x)= e−μμxx! {e ^{-μ} μ^x} \over x!where X represents a random variable following a Poisson distribution, x denotes the number of events, e is the base of the natural logarithm, and x! denotes the factorial of x.
  • The Poisson distribution finds applications in various disciplines, including statistics, physics, biology, and telecommunications, particularly in scenarios where events occur randomly and possess a known average rate.

​

Additional Information

  • The Poisson distribution finds applications in various disciplines, including statistics, physics, biology, and telecommunications, particularly in scenarios where events occur randomly and possess a known average rate.
  • It is worth noting that the Poisson distribution assumes events to be independent and rare, meaning that the occurrence of one event does not influence the occurrence of another event, and the average rate of events remains constant throughout the interval.
  • This distribution is widely used in analyzing phenomena such as the number of calls received by a call center within a specific time frame, the number of accidents occurring in a day, or the number of mutations in a DNA sequence.

Question 19

If for a data set, third quartile and median are equal, then Bowley’s coefficient of skewness is: 

  1. AOption (a)

    1/2

  2. BOption (b)

    1

  3. COption (c)

    0

  4. DOption (d)

    -1

View answer & explanation

Correct answer

Answer: (d)D.

-1

Why this answer is correct

The correct answer is (-1). 

Key Points

  • Bowley's coefficient of skewness, also known as the quartile skewness coefficient, is a measure of skewness that compares the distance between the first quartile (Q1) and the median (Q2) with the distance between the median (Q2) and the third quartile (Q3) in a data set.
  • The formula for Bowley's coefficient of skewness is: Sk = (Q1−2Q2+Q3)(Q3−Q1)(Q_1 - 2Q_2 + Q_3) \over (Q_3 - Q_1)
  • When the third quartile (Q3) and the median (Q2) are equal, the numerator of the formula becomes 0, resulting in a coefficient of skewness of -1. This indicates a perfectly negatively skewed distribution, where the data is concentrated on the right side of the median.
  • In such a case, the data distribution has a longer tail on the left side, indicating that the majority of the data values are smaller than the median.
  • It's important to note that Bowley's coefficient of skewness is just one measure of skewness and other measures such as the Pearson skewness coefficient or the moment coefficient of skewness may yield different results.

Question 20

If two large samples are drawn independently from two populations, then which of the following test statistic will be appropriate for testing the significance of difference of two proportions? 

  1. AOption (a)

    Paired t-test 

  2. BOption (b)

    Z-test

  3. COption (c)

    Chi-square test 

  4. DOption (d)

    Two independent sample t-test 

View answer & explanation

Correct answer

Answer: (b)B.

Z-test

Why this answer is correct

The correct answer is z-test. 

Key Points 

  • If two large samples are drawn independently from two populations and we want to test the significance of the difference in proportions between the two populations, the appropriate test statistic is the Z-test.
  • The Z-test is used to compare the difference between two proportions when the sample sizes are large. It is based on the assumption that the sampling distribution of the difference in proportions can be approximated by a normal distribution.
  • The Z-test calculates the test statistic by comparing the observed difference in proportions to the expected difference under the null hypothesis. The test statistic is then compared to the critical value from the standard normal distribution to determine the statistical significance of the difference.
  • The test statistic is a z-score (z) defined by the following equation is z=(p−P)σz = {{(p−P)} \over σ}; where, P is the hypothesized value of population proportion in the null hypothesis, p is the sample proportion and σ is the standard deviation of the sampling distribution.
  • The formula for the Z-test statistic for comparing two proportions is z=ρ−P0P0(1−P0)nz = {{ ρ - P_0} \over \sqrt {P_0 (1 - P_0) \over n}} ; where, n = sample size, ρ = observed proportion and P0 is the null hypothesis.
  • If the absolute value of the calculated Z-test statistic exceeds the critical value from the standard normal distribution, it indicates a significant difference between the two proportions.

Hence, in the case of testing the significance of the difference in proportions between two large independent samples, the appropriate test statistic is the Z-test.

Question 21

In a local cellular phone area, companies A and B account for 60% and 40% of the cellular phone market. 1% of the calls made with company A and 2% of the cellular calls with company B will have interference. If a cellular call is selected at random, the probability that it will have interference is:

  1. AOption (a)

    0.014

  2. BOption (b)

    0.028

  3. COption (c)

    0.14

  4. DOption (d)

    0.986

View answer & explanation

Correct answer

Answer: (a)A.

0.014

Why this answer is correct

The correct answer is 0.014. 

Key Points 

To calculate the probability that a randomly selected cellular call will have interference, the probabilities of selecting a call from each company and the probability of interference for each company are to be considered.

Given that Company A accounts for 60% (0.60) of the cellular phone market and 1% (0.01) of their calls have interference, and Company B accounts for 40% (0.40) of the market and 2% (0.02) of their calls have interference, we can calculate the overall probability of interference as follows:

Probability of interference

= (Probability of selecting Company A) × (Probability of interference in Company A) + (Probability of selecting Company B) × (Probability of interference in Company B)

= (0.60×0.01)+(0.40×0.02)(0.60 × 0.01) + (0.40 × 0.02)

= 0.006 + 0.008

= 0.014

Hence, the probability that a randomly selected cellular call will have interference is 0.014

Question 22

For a completely randomised design with a total of k treatments. let xij : ith observation corresponding to of jth treatment, i = 1, 2, ..... nj, j = 1, 2, ......, k T : total of all observations, x̅j : mean of ith treatment, x̅ : TN\rm \frac{T}{N} where N=Σj=1knj\rm N=\Sigma_{j=1}^kn_j. The sum of squares due to treatments (SST) can be calculated by using the formula:

  1. AOption (a)

    Σj=1kΣi=1nj(xij−xˉj)2\rm \Sigma_{j=1}^k\Sigma_{i=1}^{n_j}(x_{ij}- \bar x_j)^2

  2. BOption (b)

    Σj=1kΣi=1nj(xij−xˉ)2\rm \Sigma_{j=1}^k\Sigma_{i=1}^{n_j}(x_{ij}- \bar x)^2

  3. COption (c)

    Σj=1k(xˉj−xˉ)\rm \Sigma_{j=1}^k(\bar x_{j}- \bar x)

  4. DOption (d)

    Σj=1knj(xˉj−xˉ)2\rm \Sigma_{j=1}^k n_j(\bar x_{j}- \bar x)^2

View answer & explanation

Correct answer

Answer: (d)D.

Σj=1knj(xˉj−xˉ)2\rm \Sigma_{j=1}^k n_j(\bar x_{j}- \bar x)^2

Why this answer is correct

The correct answer is Σj=1knj(xˉj−xˉ)2\rm \Sigma_{j=1}^k n_j(\bar x_{j}- \bar x)^2 . 

 Key Points

  • The sum of squares due to treatments (SST) in a completely randomized design can be calculated using the formula: Σj=1knj(xˉj−xˉ)2\rm \Sigma_{j=1}^k n_j(\bar x_{j}- \bar x)^2
  • Σk represents the sum of the k treatments. It indicates that we consider each treatment separately.
  • Σj=1nj represents the sum of the observations within each treatment. It implies that we calculate the sum of squares for each treatment individually.
  • x̅j is the mean of the jth treatment, which represents the average value of the response variable for that particular treatment.
  • x̅ is the grand mean, which represents the overall average value of the response variable across all treatments and observations.
  • To calculate the SST, we take the difference between each treatment mean (x̅j) and the grand mean (x̅). We square this difference to eliminate any negative signs and emphasize the magnitude of the difference. We then sum up these squared differences across all treatments and observations.
  • The resulting SST value reflects the total variation in the response variable that can be attributed to the differences between the treatment means. It represents the variability between treatments and is used to assess the significance and effectiveness of the different treatments in the study.
  • By comparing the SST to other sums of squares, such as the sum of squares due to error (SSE) or the total sum of squares (SSTotal), we can further analyze and interpret the effects of treatments on the response variable.

Hence, the required formula is Σj=1knj(xˉj−xˉ)2\rm \Sigma_{j=1}^k n_j(\bar x_{j}- \bar x)^2

Question 23

Karl Pearson’s measure of relative skewness is defined as: 

  1. AOption (a)

    Mean−ModeStandard deviation\rm \frac{Mean-Mode}{Standard\ deviation}

  2. BOption (b)

    ModeStandard deviation\rm \frac{Mode}{Standard\ deviation}

  3. COption (c)

    Mean−MedianStandard deviation\rm \frac{Mean-Median}{Standard\ deviation}

  4. DOption (d)

    MeanStandard deviation\rm \frac{Mean}{Standard\ deviation}

View answer & explanation

Correct answer

Answer: (a)A.

Mean−ModeStandard deviation\rm \frac{Mean-Mode}{Standard\ deviation}

Why this answer is correct

The correct answer is Mean−ModeStandard deviation\rm \frac{Mean-Mode}{Standard\ deviation} . 

 Key Points

  • Karl Pearson's measure of skewness, also known as Pearson's first skewness coefficient, is defined as the ratio of the third moment about the mean to the cube of the standard deviation. It is calculated using the following formula:
  • Pearson's skewness coefficient = Mean−ModeStandard deviation\rm \frac{Mean-Mode}{Standard\ deviation}
  • To be more precise, Pearson's skewness coefficient measures the degree and direction of skewness in a distribution. The numerator, which is the difference between the mean and mode, captures the direction of skewness. A positive value indicates a right-skewed distribution, where the tail is elongated towards higher values. A negative value indicates a left-skewed distribution, where the tail is elongated towards lower values.
  • Dividing the numerator by the denominator, the standard deviation, scales the skewness measure and makes it independent of the scale of the data.
  • It's important to note that there are other measures of skewness as well, such as the Fisher-Pearson skewness coefficient and the Bowley skewness coefficient, which may have slightly different formulas and interpretations.

Hence, Karl Pearson’s measure of relative skewness is Mean−ModeStandard deviation\rm \frac{Mean-Mode}{Standard\ deviation}

Question 24

For the series a, a + d, a + 2d...., a + 2nd, the mean deviation from the mean is: 

  1. AOption (a)

    2d(n+1)2n+1\rm 2d\frac{(n+1)}{2n+1}

  2. BOption (b)

    dn(n+2)2n+1\rm d\frac{n(n+2)}{2n+1}

  3. COption (c)

    dn(n+1)2n+1\rm d\sqrt{\frac{n(n+1)}{2n+1}}

  4. DOption (d)

    dn(n+1)2n+1\rm d\frac{n(n+1)}{2n+1}

View answer & explanation

Correct answer

Answer: (d)D.

dn(n+1)2n+1\rm d\frac{n(n+1)}{2n+1}

Why this answer is correct

The correct answer is dn(n+1)2n+1\rm d\frac{n(n+1)}{2n+1} 

Key Points 

  • For the arithmetic series a, a + d, a + 2d, ..., a + 2nd, the mean deviation from the mean can be calculated using the formula:
  • Mean deviation from the mean = dn(n+1)2n+1\rm d\frac{n(n+1)}{2n+1}; where, d is the common difference between terms in the series, n is the number of terms in the series.
  • The formula you provided calculates the mean deviation from the mean for an arithmetic series. It takes into account the common difference (d), the number of terms (n), and the mathematical relationship to determine the average deviation from the mean.
  • This formula is derived by summing the deviations of each term from the mean, considering the pattern and structure of the arithmetic series. The resulting expression provides a concise way to calculate the mean deviation from the mean for such a series.

Question 25

Which of the following is NOT a method of data collection? 

  1. AOption (a)

    Interviews 

  2. BOption (b)

    Questionnaires 

  3. COption (c)

    Surveys 

  4. DOption (d)

    Watching movies 

View answer & explanation

Correct answer

Answer: (d)D.

Watching movies 

Why this answer is correct

The correct answer is watching movies. 

Key Points

 Data collection methods typically involve systematic approaches to gathering information or data from various sources. Examples of commonly used data collection methods include surveys, interviews, observations, experiments, questionnaires, and focus groups. These methods are designed to collect specific data or information relevant to a research or study objective. Watching movies, on the other hand, is a leisure activity or form of entertainment and does not typically involve collecting structured data or information for research purposes.

Additional Information

  • ​Interviews are a data collection method where researchers directly interact with participants to gather information. This can be done through face-to-face conversations, phone calls, or virtual meetings. Interviews provide an opportunity to ask open-ended or structured questions, allowing for an in-depth exploration of the topic. Researchers can probe for detailed responses, gain insights into participants' perspectives, and collect qualitative data. Interviews are valuable for obtaining rich, nuanced data and establishing a deeper understanding of the research subject.
  • Questionnaires involve presenting participants with a set of pre-designed questions to collect information. They can be administered in written or electronic format. Questionnaires often use closed-ended questions with predefined response options, facilitating standardized data collection. They are efficient for gathering data from large samples and enabling quantitative analysis. Questionnaires allow researchers to collect data on attitudes, opinions, behaviours, and demographics. Careful design ensures clarity, relevance, and proper sequencing of questions for reliable and valid data collection.
  • Surveys are a widely used data collection method that involves gathering information from a large population or sample. Surveys typically employ structured questionnaires to collect data on specific topics of interest. They can be administered through various channels, including online platforms, email, or paper-based forms. Surveys enable researchers to collect quantitative data, analyze patterns, and draw statistical conclusions. They offer a cost-effective and efficient way to obtain data from a diverse range of participants and are suitable for a wide range of research objectives.

Question 26

Which of the following divides an observation into two equal parts? 

  1. AOption (a)

    Median

  2. BOption (b)

    Range

  3. COption (c)

    Mean

  4. DOption (d)

    Mode

View answer & explanation

Correct answer

Answer: (a)A.

Median

Why this answer is correct

The correct answer is Median. 

Key Points

  • The median divides an observation into two equal parts. The median is a measure of central tendency that represents the middle value of a dataset when the values are arranged in ascending or descending order. In other words, it is the value that separates the higher half of the observations from the lower half.
  • By definition, 50% of the observations fall below the median, and 50% fall above it. Therefore, the median divides the dataset into two equal parts, making it a useful measure for understanding the central position of the data.

Additional Information

  • When analyzing data, understanding the central tendency is crucial in capturing the essence of the dataset. While the mean is a widely used measure, there is another valuable measure called the median.
  • The median plays a unique role in providing insights into the distribution and central position of the data. Unlike the mean, which is influenced by extreme values, the median offers a robust alternative that is less affected by outliers.
  • By dividing the dataset into two equal parts, the median serves as a powerful tool for understanding the typical value or observation at the center. Whether working with numerical or ordinal data, the median proves versatile, making it valuable in a wide range of fields such as statistics, economics, and social sciences.

Question 27

The fourth central moment of a mesokurtic distribution is 243. Its standard deviation is: 

  1. AOption (a)

    9

  2. BOption (b)

    3

  3. COption (c)

    4

  4. DOption (d)

    16

View answer & explanation

Correct answer

Answer: (b)B.

3

Why this answer is correct

The correct answer is 3. 

Key Points 

  • If the fourth central moment of a mesokurtic distribution is 243 and the standard deviation is 3, we can calculate the variance and confirm if it aligns with a mesokurtic distribution.
  • The fourth central moment (μ₄) is related to the variance (σ²) as follows: μ₄ = σ⁴(κ + 3) - 3σ⁴
  • For a mesokurtic distribution, the kurtosis (κ) is 3. Substituting the given values into the equation, we have: 243 = 3⁴(3 + 3) - 3(3⁴) 243 = 81(6) - 3(81) 243 = 486 - 243 243 = 243
  • Since the equation holds true, we can conclude that the variance is indeed 243. Taking the square root of the variance, we find: σ = √243 σ = 3

Hence, the standard deviation is 3.

Question 28

If the number of observations in a series is 15, then the third quartile is equal to: 

  1. AOption (a)

    9th observation in the series after arranging in descending order

  2. BOption (b)

    11th observation in the series after arranging in ascending order

  3. COption (c)

    10th observation in the series after arranging in descending order

  4. DOption (d)

    12th observation in the series after arranging in ascending order

View answer & explanation

Correct answer

Answer: (d)D.

12th observation in the series after arranging in ascending order

Why this answer is correct

The correct answer 12th observation in the series after arranging in ascending order. 

Key Points

The method to determine the third quartile of a series with 15 observations is as follows: 

  • First, we need to find the position of the third quartile using the formula:
  • Position of the third quartile = (3/4) * (n + 1); where n represents the total number of observations. In this case, n is 15.
  • Plugging in the values, we have: 
  • Position of the third quartile = (3/4) * (15 + 1) = (3/4) * 16 = 12
  • The position of the third quartile is 12.
  • Next, we arrange the series in ascending order and locate the value at the 12th position. This observation represents the third quartile. (Alternatively, if the series is already sorted in ascending order, the third quartile will be the 12th observation directly.)

Hence, in both cases, the third quartile will be equal to the 12th observation in the series after arranging it in ascending order.

Question 29

For normal distribution, which of the following is true?  

  1. AOption (a)

    Mean < Median < Mode 

  2. BOption (b)

    Mean > Median < Mode 

  3. COption (c)

    Mean > Median > Mode 

  4. DOption (d)

    Mean = Median = Mode 

View answer & explanation

Correct answer

Answer: (d)D.

Mean = Median = Mode 

Why this answer is correct

The correct answer is Mean = Median = Mode

Key Points 

  • The property that the mean, median, and mode are equal in a normal distribution is a fundamental characteristic of its symmetrical shape.
  • In a normal distribution, the data is symmetrically distributed around the mean, creating a bell-shaped curve. The mean represents the arithmetic average of the data points, indicating the central tendency of the distribution.
  • The median, on the other hand, represents the middle value that divides the distribution into two equal halves. The mode refers to the value that occurs most frequently in the dataset.
  • Since the normal distribution is symmetric, with equal proportions of data on both sides of the mean, the median and mode coincide with the mean. This means that the central value of the distribution, which represents the peak or highest point, is also the value that occurs most frequently and divides the data into equal halves.
  • The equality of the mean, median, and mode in a normal distribution simplifies the understanding and analysis of the data. It provides a reference point for locating the center of the distribution and understanding the typical value that represents the dataset.
  • This property also facilitates various statistical calculations and inference procedures based on the normal distribution, as it allows for simpler computations and interpretations.

  • Hence, the fact that the mean, median, and mode are equal in a normal distribution is true.

Question 30

While using ANOVA for one way classified data with three groups consisting of 10, 9 and 10 observations, respectively, the residual/error degrees of freedom are: 

  1. AOption (a)

    26

  2. BOption (b)

    19

  3. COption (c)

    29

  4. DOption (d)

    20

View answer & explanation

Correct answer

Answer: (a)A.

26

Why this answer is correct

The correct answer is 26.

Key Points

  • The residual degrees of freedom represent the number of observations in the data that are free to vary after accounting for the differences between the groups. These degrees of freedom are used to estimate the variability within each group and the overall error or residual variability in the ANOVA analysis.
  • To calculate the residual or error degrees of freedom in a one-way ANOVA with three groups, we follow a step-by-step method. 
  • Determine the total sample size: Add up the number of observations in each group. In this case, we have 10 + 9 + 10 = 29 observations.
  • Identify the number of groups: In a one-way ANOVA, we compare the means of different groups. Here, we have three groups.
  • Calculate the residual degrees of freedom: Subtract the number of groups from the total sample size. In this case, the calculation is 29 - 3 = 26.
  • Having 26 residual degrees of freedom means that there are 26 independent pieces of information available to estimate the error variability in the model.
  • This information is crucial for conducting hypothesis tests and making inferences about the differences between the group means in the ANOVA analysis.

Question 31

If ‘m’ individuals receive the same rank. then the correction factor required to be added in the calculation of Spearman’s rank correlation is: 

  1. AOption (a)

    m(m−1)12\rm \frac{m(m-1)}{12}

  2. BOption (b)

    m12\rm \frac{m}{12}

  3. COption (c)

    m(m2−1)12\rm \frac{m(m^2-1)}{12}

  4. DOption (d)

    (m2−1)12\rm \frac{(m^2-1)}{12}

View answer & explanation

Correct answer

Answer: (c)C.

m(m2−1)12\rm \frac{m(m^2-1)}{12}

Why this answer is correct

The correct answer is m(m2−1)12\rm \frac{m(m^2-1)}{12}

Key Points

  • The correction factor required to be added in the calculation of Spearman's rank correlation when 'm' individuals receive the same rank is given by the formula: m(m2−1)12\rm \frac{m(m^2-1)}{12}, where, 'm' represents the number of individuals who have the same rank in the data set.
  • The correction factor is used to adjust for tied ranks in the calculation of Spearman's rank correlation coefficient. When there are ties in the ranks, it means that multiple individuals have the same rank value. The correction factor takes into account the extent of these ties and helps in providing a more accurate estimate of the rank correlation.
  • By adding the correction factor to the rank correlation formula, we account for the impact of tied ranks on the final correlation coefficient. This ensures that the rank correlation calculation appropriately reflects the strength of the relationship between the variables, considering the ties in the data.
  • Including the correction factor is important in situations where ties occur in the data set, as it helps to improve the accuracy and validity of the Spearman's rank correlation coefficient as a measure of association between variables.

Additional Information

  • Spearman's rank correlation coefficient, named after Charles Spearman, is a non-parametric measure of correlation between two variables. It is based on the ranks of the observations rather than their actual values.
  • Spearman's rank correlation is widely used in various fields, such as social sciences, economics, psychology, and biological research. It provides a robust and flexible measure of association between variables, particularly when the data does not meet the assumptions of parametric correlation measures like Pearson's correlation coefficient.

Question 32

For three random variables X1 , X2 and X3, the pairwise correlation coefficients are r12 = r13 = r23 = r. The multiple correlation coefficient R1.2.32\rm R_{1.2.3}^2 is

  1. AOption (a)

    2r1+r\rm \frac{2r}{1+r}

  2. BOption (b)

    r1+r\rm \frac{r}{1+r}

  3. COption (c)

    2r21−r\rm \frac{2r^2}{1-r}

  4. DOption (d)

    2r21+r\rm \frac{2r^2}{1+r}

View answer & explanation

Correct answer

Answer: (d)D.

2r21+r\rm \frac{2r^2}{1+r}

Why this answer is correct

The correct answer is 2r21+r\rm \frac{2r^2}{1+r}

Key Points 

  • The formula for the multiple correlation coefficient (R) = 2r21+r\rm \frac{2r^2}{1+r}
  • In this formula, r represents the pairwise correlation coefficient between any two variables, such as r12 for X1 and X2, r13 for X1 and X3, and r23 for X2 and X3.
  • The multiple correlation coefficient measures the strength of the linear relationship between the dependent variable (Y) and the set of independent variables (X1, X2, X3) collectively. It indicates how well the independent variables, taken together, predict the variation in the dependent variable.
  • The value of R ranges from 0 to 1, where 0 indicates no linear relationship and 1 indicates a perfect linear relationship between the variables. A higher value of R suggests a stronger correlation and implies that the independent variables jointly explain more of the variance in the dependent variable.
  • The formula calculates the multiple correlation coefficient based on the pairwise correlation coefficients. It shows the relationship between the individual pairwise correlations (r) and the overall multiple correlations (R), highlighting the combined effect of the variables on the dependent variable.

Additional Information

  • The multiple correlation coefficient is commonly employed in regression analysis. It helps evaluate the overall goodness of fit of the regression model and assess the strength of the relationship between the independent variables and the dependent variable when multiple predictors are involved.
  • While the formula assumes equal pairwise correlations (r), in practice, the actual values of the pairwise correlations can vary, and more advanced methods may be required to estimate the multiple correlation coefficient accurately.

Question 33

7th decile is:

  1. AOption (a)

    50th percentile

  2. BOption (b)

    45th percentile

  3. COption (c)

    70th percentile

  4. DOption (d)

    65th percentile

View answer & explanation

Correct answer

Answer: (c)C.

70th percentile

Why this answer is correct

The correct answer is 70th percentile

Key Points 

  • In statistics, percentiles are a way to divide a dataset into hundred equal parts based on their relative rank or position. Each percentile represents a specific percentage of the data below it. For example, the 70th percentile signifies that 70% of the observations in the dataset are less than or equal to the value at that percentile.
  • Deciles, on the other hand, divide the dataset into ten equal parts. Each decile represents a specific range of percentiles. The 7th decile corresponds to the range of percentiles from the 60th to the 70th.
  • When we say that the 7th decile is equivalent to the 70th percentile, it means that the value at the 70th percentile acts as the boundary value between the 6th and 7th deciles. This boundary value represents the value below which 70% of the data falls.
  • By utilizing percentiles and deciles, we can analyze the distribution of data, identify specific ranges of values, and determine the relative position of individual observations within the dataset in a more formal and structured manner.

Question 34

Let X have the pdf \rm f(x)=\left{\begin{matrix}1-|1-x|, 0<x<2& P\left(\frac{1}{3}\le X\le \frac{4}{3}\right)\\ 0,& \rm otherwise\end{matrix}\right. is equal to:

  1. AOption (a)

    13/18

  2. BOption (b)

    12/19

  3. COption (c)

    11/18

  4. DOption (d)

    11/20

View answer & explanation

Correct answer

Answer: (a)A.

13/18

Why this answer is correct

The correct answer is 131813 \over 18.

Key Points 

To find the probability P(13≤x≤43)P ({1 \over 3} \leq x \leq {4 \over 3}) using the given probability density function (pdf), we need to integrate the pdf over the specified range.

The pdf f(x)=1−∣1−x∣f(x) = 1 - |1 - x| is a piecewise function. Let's split the integration into two parts: 

For 0<x<10 < x < 1: 

f(x)=1−(1−x)=xf(x) = 1 - (1 - x) = x

For 1≤x<21 \leq x < 2 :

f(x)=1−∣1−x∣=1−(x−1)=(2−x)f(x) = 1 - |1 - x| = 1 - (x - 1) = (2 - x)

Now, we can evaluate the probability: P(13≤x≤43)=∫1343f(x)dxP ({1 \over 3} \leq x \leq {4 \over 3}) = \int\limits_{1\over 3}^{4\over3} f(x) dx

Evaluating the integrals: \([{x^2\over2}]{1\over3}^{1} + [2x - {x^2\over 2}]{1}^{4\over3}\)

Simplifying this, we have: (12−118)+(83−89−2+1)=1318({1\over 2} - {1\over 18}) + ({8 \over 3} - {8\over 9} - 2 + 1) = {13\over 18}

Hence, the required probability is 131813\over 18.

Question 35

Let X be a discrete variable taking values -3, -2, -1 and 0 with probabilities 1/3, 1/4 ,1/12 and 1/3. The variance of X  

  1. AOption (a)

    227/144

  2. BOption (b)

    225/144

  3. COption (c)

    125/144

  4. DOption (d)

    25/12

View answer & explanation

Correct answer

Answer: (a)A.

227/144

Why this answer is correct

The correct answer is 227144227 \over 144 

Key Points To calculate the variance of a discrete random variable, you can use the following formula: Var(X)=E[(X−μ)2]Var(X) = E[(X - \mu)^2] and the mean = μ=E(X)=∑XiP(Xi)\mu = E(X) = \sum X_i P(X_i) ; where E represents the expected value and μ represents the mean of the random variable X, P(Xi) represents the probabilities corresponding to each Xi

Values (Xi)Probabilities (Pi)∏XiP(Xi)\prod X_iP(X_i)
(−3)(-3)131\over3(−3)×13=−1(-3) \times {1\over3} = -1
(−2)(-2)141\over4(−2)×14=−12(-2) \times {1\over4} = - {1\over 2}
(−1)(-1)1121\over12(−1)×112=−112(-1) \times {1\over12} = - {1\over 12}
00131\over30×13=00 \times {1\over 3} = 0
Total1μ=∑XiP(Xi)=−1912\mu = \sum X_iP(X_i) = -{19 \over 12}

Hence, the mean μ=−1112\mu = - {11\over 12}

Values (Xi)Probability (Pi)(Xi−μ)(X_i - \mu) (Xi−μ)2(X_i - \mu)^2 (Xi−μ)2×Pi(X_i - \mu)^2 \times P_i
(−3)(-3)131\over 3[(−3)−(−1912)]=−1712[(-3) - ({-{19\over 12}})] = - {17 \over 12} (−1712)2=289144(- {17\over 12})^2 = {289 \over 144} 289144×13{289 \over 144} \times {1\over 3}
(−2)(-2)141\over 4[(−2)−(−1912)]=−512[(-2) - ({-{19\over 12}})] = - {5 \over 12} (−512)2=25144(- {5\over 12})^2 = {25 \over 144} 25144×14{25 \over 144} \times {1\over 4}
(−1)(-1)1121\over12[(−1)−(−1912)]=712[(-1) - ({-{19\over 12}})] = {7 \over 12} (−712)2=34144(- {7\over 12})^2 = {34 \over 144} 49144×112{49 \over 144} \times {1\over 12}
00131\over 3[(0)−(−1912)]=1912[(0) - ({-{19\over 12}})] = {19\over 12} (1912)2=361144({19\over 12})^2 = {361 \over 144} 361144×13{361 \over 144} \times {1\over 3}
Total1∑i[(Xi−μ)2×Pi]=227144\sum_i [(X_i - \mu)^2\times P_i] = {227\over 144}

Hence, the variance of X = Var(X) = 227144227\over 144

Question 36

Let the first four central moments of a distribution be μ1 = 0, μ2 = -93, μ3 = 0, μ4 = 2.53. The distribution:

  1. AOption (a)

    is symmetric and platykurtic 

  2. BOption (b)

    is negatively skewed and leptokurtic 

  3. COption (c)

    is symmetric and mesokurtic 

  4. DOption (d)

    is positively skewed and platykurtic 

View answer & explanation

Correct answer

Answer: (a)A.

is symmetric and platykurtic 

Why this answer is correct

The correct answer is symmetric and platykurtic 

Key Points

  • Based on the provided information regarding the first four central moments of a distribution:
  • μ1 = 0 μ2 = -93 μ3 = 0 μ4 = 2.53
  • We can deduce the following characteristics of the distribution:
  • Symmetry: The fact that the first central moment (μ1) is zero indicates that the distribution possesses symmetricity. A zero value for μ1 suggests that the distribution is centred around its mean, implying the absence of skewness.
  • Kurtosis (Platykurtic): The positive value of the fourth central moment (μ4) at 2.53 implies positive kurtosis. Positive kurtosis suggests that the distribution possesses heavier tails and a more peaked shape than a normal distribution. Specifically, the given value of μ4 indicates a platykurtic distribution, signifying lighter tails and a flatter peak compared to a normal distribution.

Hence, based on the provided information, the distribution can be formally described as symmetric and platykurtic.

Question 37

With the usual notations, the formula for calculating Laspeyres' index number is: 

  1. AOption (a)

    Σip1iiq0iΣip0iq0i\rm \frac{\Sigma ip_{1ii}q_{0i}}{\Sigma ip_{0i}q_{0i}}

  2. BOption (b)

    Σip0iiq0iΣip1iq0i\rm \frac{\Sigma ip_{0ii}q_{0i}}{\Sigma ip_{1i}q_{0i}}

  3. COption (c)

    Σi(p1iiq0i)Σip0iq0i\rm \frac{\Sigma i(p_{1ii}q_{0i})}{\Sigma ip_{0i}q_{0i}}

  4. DOption (d)

    Σip1iiq1iiΣip0iq0i\rm \frac{\Sigma ip_{1ii}q_{1ii}}{\Sigma ip_{0i}q_{0i}}

View answer & explanation

Correct answer

Answer: (a)A.

Σip1iiq0iΣip0iq0i\rm \frac{\Sigma ip_{1ii}q_{0i}}{\Sigma ip_{0i}q_{0i}}

Why this answer is correct

The correct answer is Σip1iiq0iΣip0iq0i\rm \frac{\Sigma ip_{1ii}q_{0i}}{\Sigma ip_{0i}q_{0i}}. 

Key Points 

  • The formula for calculating Laspeyres' index number, using the usual notations, is as follows:
  • Laspeyres' Index = Σip1iiq0iΣip0iq0i\frac{\Sigma ip_{1ii}q_{0i}}{\Sigma ip_{0i}q_{0i}}; where  
  • Σ\Sigma indicates the summing operation.
  • ii  represents the index of the individual items or categories being considered.
  • p1iip_{1ii} refers to the current period (usually denoted as period 1) price of item i.
  • p0ip_{0i} represents the base period (usually denoted as period 0) price of item i.
  • q0iq_{0i} denotes the base period quantity of item i.
  • To calculate Laspeyres' index, we sum up the products of the current period price, p1iip_{1ii}, and the base period quantity, q0iq_{0i}, for each item or category. Then, divide this sum by the sum of the products of the base period price, p0ip_{0i}, and the base period quantity, q0iq_{0i}, for each item or category.
  • This index is commonly used to measure the change in the value of a specific set of goods or items between two periods, with the base period as the reference point.

Additional Information

  • Laspeyres' index number compares the value or quantity of goods or items in a current period (period 1) with the value or quantity of the same goods or items in a base period (period 0). It is a fixed-base index, meaning that the base period remains constant throughout the analysis.
  • Laspeyres' index number is often used in economics, particularly in price index calculations, to measure the change in the cost of a fixed basket of goods over time. It is useful for analyzing inflation, as it provides a measure of the average price change for a specific set of goods or items.
  • It's important to note that Laspeyres' index has some limitations, including potential substitution bias and not capturing changes in consumption patterns. Other index number formulas, such as Paasche's index and Fisher's index, address these limitations by considering different weighting schemes or using average prices from both periods.

Overall, index numbers, including Laspeyres' index, are valuable tools for analyzing changes in variables over time and making meaningful comparisons.

Question 38

If the fourth central moment of a frequency distribution is 11 and all its odd raw moments are equal to zero, then its fourth raw moment is equal to:  

  1. AOption (a)

    5

  2. BOption (b)

    7

  3. COption (c)

    11

  4. DOption (d)

    9

View answer & explanation

Correct answer

Answer: (c)C.

11

Why this answer is correct

The correct answer is 11. 

Key Points 

  • Given that the fourth central moment of a frequency distribution is equal to 11, denoted as μ4 = 11, and all odd raw moments are zero, we can derive information about the distribution's characteristics. 
  • First, the fourth central moment measures the shape and spread of the distribution, particularly its kurtosis. A positive value of μ4 indicates that the distribution has heavier tails and a more peaked shape compared to a normal distribution.
  • Additionally, when all odd raw moments are zero, it implies that the distribution exhibits symmetry. Symmetry means that the distribution is balanced around the origin and does not display any skewness.
  • Since we have a symmetric distribution with μ4 = 11, it follows that the fourth raw moment, denoted as m4, is also equal to 11. In symmetric distributions, the central moments and raw moments of the same order are equal. Therefore, if the fourth central moment is 11, it implies that the fourth raw moment is also 11.
  • In summary, based on the assumption that μ4 = 11 and all odd raw moments are zero, we can formally conclude that the fourth raw moment of the frequency distribution, m4, is equal to 11.

Question 39

Which of the following is a measure of relative dispersion? 

  1. AOption (a)

    Coefficient of variation 

  2. BOption (b)

    Quartile deviation 

  3. COption (c)

    Harmonic mean 

  4. DOption (d)

    Standard deviation 

View answer & explanation

Correct answer

Answer: (a)A.

Coefficient of variation 

Why this answer is correct

The correct answer is the coefficient of variation. 

Key Points

Coefficient of variation:

The coefficient of variation (CV) is a statistical measure that expresses the standard deviation as a percentage of the mean. It is calculated by dividing the standard deviation by the mean and multiplying by 100. The CV provides a relative measure of dispersion because it considers the standard deviation in relation to the mean. It is commonly used when comparing the variability of different datasets with different means. 

Additional Information

  • Quartile deviation: The quartile deviation measures the spread or dispersion of a dataset by calculating the difference between the upper quartile (Q3) and the lower quartile (Q1). However, it does not provide a relative measure of dispersion since it is an absolute measure that does not take into account the magnitude of the data values.
  • Harmonic mean: The harmonic mean is a measure of central tendency and does not directly measure dispersion. It calculates the reciprocal of the average of the reciprocals of a set of values. It is primarily used to calculate rates or averages in cases where the data values have a reciprocal relationship, such as rates of speed or time.
  • Standard deviation: The standard deviation is a measure of dispersion that quantifies the amount of variation or spread in a dataset. It measures the average distance of data points from the mean. While the standard deviation provides an absolute measure of dispersion, it does not directly provide a relative measure unless it is compared to the mean or other reference values.

Hence the coefficient of variation is the measure of relative dispersion.

Question 40

Let a continuous random variable X have pdf \rm f(x)=\left{\begin{matrix}\frac{3x^2}{θ ^2},& 0\le x \le θ\\ 0,& \rm otherwise\end{matrix}\right. for some θ > 0, the mode of X is :

  1. AOption (a)

    θ2

  2. BOption (b)

    1/θ2

  3. COption (c)

    θ3

  4. DOption (d)

    θ

View answer & explanation

Correct answer

Answer: (d)D.

θ

Why this answer is correct

The correct answer is θ.

Key Points

  • The mode of a probability distribution is the value of the random variable where the probability density function (pdf) reaches its maximum. The pdf for the random variable X given here is a continuous function on the interval [0, θ], and is 0 everywhere else.
  • This particular pdf is a monotonically increasing function of x on the interval [0, θ] (since x^2 is an increasing function on [0, θ] and θ^2 is a positive constant). This means that the function f(x) increases as x increases within this interval.

Hence, the mode of X, the point where the pdf f(x) is at its maximum, is at x = θ.

Question 41

The maximum likelihood estimate of the rate parameter of exponential population based on the sample 1, 3, 1, 8, 2, 8, 3, 8, 2, 13 is:  

  1. AOption (a)

    3.504

  2. BOption (b)

    0.204

  3. COption (c)

    4.204

  4. DOption (d)

    0.804

View answer & explanation

Correct answer

Answer: (b)B.

0.204

Why this answer is correct

The correct answer is 0.204 

Key Points 

  • The exponential distribution has a probability density function (pdf) given by f(x;λ)=λe(−λx)f(x; λ) = λe^{(-λx)} for x ≥ 0 and λ > 0. The rate parameter λ is the parameter we want to estimate.
  • The method of maximum likelihood estimation (MLE) is commonly used for this purpose. The likelihood function for a sample {x1, x2, ..., xn} drawn from an exponential distribution is given by: L(λ;x1,x2,...,xn)=λn×e(−λ∑xi).L(λ; x_1, x_2, ..., x_n) = λn \times e^{(-λ \sum x_i)}.
  • Taking the natural logarithm gives the log-likelihood function, which simplifies the process of finding the maximum: l(λ;x1,X2,...,xn)=nlog(λ)−λ∑xil(λ; x_1,X_2, ..., x_n) = n log (λ) - λ \sum x_i
  • To find the maximum likelihood estimate, we differentiate this function with respect to λ, set the derivative equal to zero, and solve for λ. This gives: 

ddλ[l(λ;x1,x2,...,xn)]=nλ−∑xi=0{d \over dλ} [l (λ; x_1, x_2, ..., x_n)] = {n \over λ} - \sum x_i = 0

  • Rearranging this gives the maximum likelihood estimate for λ: λ^=n∑xi λ̂ = {n \over \sum x_i}
  • For the given sample {1, 3, 1, 8, 2, 8, 3, 8, 2, 13}, we have n = 10 (the number of observations) and ∑xi = 1 + 3 + 1 + 8 + 2 + 8 + 3 + 8 + 2 + 13 = 49.
  • Plugging these into the formula gives: λ^=1049≈0.204λ̂ = {10 \over 49} \approx 0.204

The maximum likelihood estimate of the rate parameter λ for the given sample is approximately 0.204.

Question 42

The mean absolute deviation is zero when: 

  1. AOption (a)

    all observations are different from each other 

  2. BOption (b)

    few observations are equal to one and few are equal to two 

  3. COption (c)

    few observations are zero and few are non-zero 

  4. DOption (d)

    all observations are equal 

View answer & explanation

Correct answer

Answer: (d)D.

all observations are equal 

Why this answer is correct

The correct answer is all observations are equal.  

Key Points

  • The mean absolute deviation (MAD) is a measure of dispersion that calculates the average absolute difference between each data point and the mean of the dataset.
  • Among the alternatives provided, the mean absolute deviation (MAD) is zero when all observations are equal.
  • In a dataset where all observations are equal, the absolute difference between each data point and the mean will be zero for every observation. When calculating the average of these zero differences, the result will also be zero.

Additional Information

  • When all observations are different from each other:
  • In this scenario, the MAD will not be zero. Since all observations are different, there will be non-zero absolute differences between each data point and the mean. When averaged, these non-zero differences will result in a non-zero MAD.
  • When few observations are equal to one and few are equal to two:
  • In this scenario, the MAD will not be zero either. As there are different values present in the dataset (one and two), the absolute differences between each data point and the mean will be non-zero. Averaging these non-zero differences will lead to a non-zero MAD.
  • When few observations are zero and few are non-zero:
  • Similar to the previous scenarios, the MAD will not be zero in this case. Since there are both zero and non-zero values in the dataset, the absolute differences between each data point and the mean will be non-zero. Computing the average of these non-zero differences will yield a non-zero MAD.
  • When all observations are equal:
  • When all observations in a dataset are equal, the absolute difference between each data point and the mean will be zero for every observation. Consequently, when averaging these zero differences, the result will be zero. Thus, in this scenario, the MAD will be zero.

Hence, when all observations in a dataset are equal, the mean absolute deviation (MAD) will be zero.

Question 43

Which of the following is NOT true about non-probability sampling? 

  1. AOption (a)

    It is a fast method. 

  2. BOption (b)

    It is expensive. 

  3. COption (c)

    Subjective approach of selecting a sample. 

  4. DOption (d)

    It is an easy method. 

View answer & explanation

Correct answer

Answer: (b)B.

It is expensive. 

Why this answer is correct

The correct answer is It is expensive. 

Key Points 

Non-probability sampling represents a set of sampling techniques where the samples are assembled in a manner that does not afford all individuals in the population an equal chance of selection. Here are evaluations of the proposed statements: 

  • Non-probability sampling is a fast method: This statement is generally accurate. Non-probability sampling can frequently be executed more swiftly than probability sampling because it doesn't necessitate the establishment of a comprehensive sampling frame that enumerates every individual in the population.
  • Non-probability sampling is expensive: This statement is typically incorrect. Methods involving non-probability sampling are usually less financially demanding than those employing probability sampling. This is because they can be carried out more promptly and do not necessitate interaction with every individual in the population.
  • Non-probability sampling employs a subjective approach in sample selection: This statement is correct. Given that non-probability sampling does not provide every individual in the population an equal opportunity of being chosen, it is frequently perceived as a more subjective technique. The investigator utilizes their discretion to select participants, which could lead to bias.
  • Non-probability sampling is an easy method: This statement is generally accurate. Techniques involving non-probability sampling are often less complex to carry out than those involving probability sampling because they do not necessitate a comprehensive list of the population or intricate random selection procedures.

In conclusion, the assertion that does NOT hold for non-probability sampling is the second statement: "Non-probability sampling is expensive." Contrarily, non-probability sampling techniques are generally less costly than probability sampling methods.

Question 44

Let the probability function of X be given by \rm p(x)=\left{\begin{matrix}\frac{18}{38},x=.5\\ \frac{18}{38},x=1\\ \frac{2}{38},x=10\\ 0, \rm otherwise\end{matrix}\right. Then P(0 ≤ X ≤ 2) is equal to:

  1. AOption (a)

    18/19

  2. BOption (b)

    18/38

  3. COption (c)

    19/38

  4. DOption (d)

    20/38

View answer & explanation

Correct answer

Answer: (a)A.

18/19

Why this answer is correct

The correct answer is 18/19. 

Key Points

The probability function delineated describes a discrete random variable, denoted as X, which can assume the values 0.5, 1, and 10 with corresponding probabilities of 18/38, 18/38, and 2/38 respectively. The probability that X resides within the range from 0 to 2, which can be denoted as P(0 ≤ X ≤ 2), is obtained by summing the probabilities corresponding to the values X=0.5 and X=1. This can be computed by adding the probabilities p(0.5) and p(1) as follows: 

P(0 ≤ X ≤ 2)

= p(0.5) + p(1)

= 18/38 + 18/38

= 36/38 = 18/19. 

Hence, the probability that X is within the range from 0 to 2, P(0 ≤ X ≤ 2), is indeed equal to 18/19.

Question 45

Let X be a continuous random variable with probability density function \rm p(x)=\left{\begin{matrix}ax, 0\le x<1\\ a, 1\le x<2\\ -ax+3a, 2\le x <3\\ 0, 3\le x\end{matrix}\right.  The value of a is:

  1. AOption (a)

    5

  2. BOption (b)

    4

  3. COption (c)

    3

  4. DOption (d)

    1/2

View answer & explanation

Correct answer

Answer: (d)D.

1/2

Why this answer is correct

The correct answer is 1/2

Key Points 

The probability density function (pdf) of a continuous random variable integrates to 1 over its entire domain. In this case, the pdf is defined on the interval [0,3). We can therefore determine the value of a by setting up and solving the following integral: 

∫03p(x)dx=1\rm\displaystyle \int_0^3p(x)dx=1

or, ∫01a(x)dx+∫12adx+∫23(−ax+3a)dx=1\rm\displaystyle \int_0^1a(x)dx+\rm\displaystyle \int_1^2adx+\rm\displaystyle \int_2^3(-ax+3a)dx=1

or, a×12[x2]01+ax[x]12+(−a)12[x2]23+3a[x]23=1\rm a\times \frac{1}{2}[x^2]_0^1+ax[x]_1^2+(-a)\frac{1}{2}[x^2]_2^3+3a[x]_2^3=1

or, a2+a(2−1)+(−a)2(32−22)+3a(3−2)=1\rm \frac{a}{2}+a(2-1)+\frac{(-a)}{2}(3^2-2^2)+3a(3-2)=1

or, a2+a−5a2+3a=1\rm \frac{a}{2}+a-\frac{5a}{2}+3a=1

or, a+2a−5a+6a2=1\rm \frac{a+2a-5a+6a}{2}=1

or, 9a - 5a = 2

or, 4a = 2

or, a=24=12\rm a=\frac{2}{4}=\frac{1}{2}

Hence, the correct value of 'a' is 1/2.

Question 46

If μr′\rm μ_r^{'} and μr respectively, denote rth order moments about the origin and mean, then:

  1. AOption (a)

    μ4=μ4′−4μ3′μ1′+6μ2′(μ1′)2−3(μ1′)4\rm \mu_4=\mu^{'}_4-4\mu_3^{'}\mu_1^{'}+6\mu_2^{'}(\mu_1^{'})^2-3(\mu_1^{'})^4

  2. BOption (b)

    μ4=μ4′+4μ3′μ1′+6μ2′(μ1′)2−3(μ1′)4\rm \mu_4=\mu^{'}_4+4\mu_3^{'}\mu_1^{'}+6\mu_2^{'}(\mu_1^{'})^2-3(\mu_1^{'})^4

  3. COption (c)

    μ4=μ4′−4μ3′μ1′−6μ2′(μ1′)2−3(μ1′)4\rm \mu_4=\mu^{'}_4-4\mu_3^{'}\mu_1^{'}-6\mu_2^{'}(\mu_1^{'})^2-3(\mu_1^{'})^4

  4. DOption (d)

    μ4=μ4′−4μ3′μ1′+6μ2′(μ1′)2+3(μ1′)4\rm \mu_4=\mu^{'}_4-4\mu_3^{'}\mu_1^{'}+6\mu_2^{'}(\mu_1^{'})^2+3(\mu_1^{'})^4

View answer & explanation

Correct answer

Answer: (a)A.

μ4=μ4′−4μ3′μ1′+6μ2′(μ1′)2−3(μ1′)4\rm \mu_4=\mu^{'}_4-4\mu_3^{'}\mu_1^{'}+6\mu_2^{'}(\mu_1^{'})^2-3(\mu_1^{'})^4

Why this answer is correct

The correct answer is μ4=μ4′−4μ3′μ1′+6μ2′(μ1′)2−3(μ1′)4\rm \mu_4=\mu^{'}_4-4\mu_3^{'}\mu_1^{'}+6\mu_2^{'}(\mu_1^{'})^2-3(\mu_1^{'})^4

Key Points

Let μ_4 denote the fourth-order moment about the origin, and μ1′,μ2′,μ3′μ'_1, μ'_2, μ'_3  represent the first, second, and third raw moments about the origin, respectively. Furthermore, let μ symbolize the mean of the random variable. 

  • The equation provided is: μ4=μ4′−4μ3′μ1′+6μ2′(μ1′)2−3(μ1′)4μ_4 = μ'_4 - 4μ'_3μ'_1 + 6μ'_2(μ'_1)^2 - 3(μ'_1)^4; where, 
  • μ4μ_4 represents the expected value of the random variable raised to the power of 4, adjusted by subtracting the fourth power of the mean.
  • μ4′μ'_4 represents the expected value of the random variable raised to the power of 4 without adjusting for the fourth power of the mean.
  • μ3′μ'_3  represents the expected value of the random variable raised to the power of 3 without adjusting for the cube of the mean.
  • μ1′μ'_1 represents the expected value of the random variable without adjusting for the mean.
  • μ2′μ'_2 represents the expected value of the random variable squared without adjusting for the square of the mean.

This equation illustrates the relationship between these moments, demonstrating how the fourth-order moment about the origin can be computed based on the raw moments and the mean. It is important to note that this equation assumes a symmetric distribution, where the central moments and raw moments are equivalent. For distributions that are not symmetric, the equation may differ or involve additional terms.

Question 47

If the median of the observations 2, 3, 5, 6, x, 8, 9, is 6 then x CANNOT be equal to: 

  1. AOption (a)

    8

  2. BOption (b)

    1

  3. COption (c)

    10

  4. DOption (d)

    7

View answer & explanation

Correct answer

Answer: (b)B.

1

Why this answer is correct

The correct answer is 1. 

Key Points 

Given the observations 2, 3, 5, 6, x, 8, 9, to determine the median, we arrange the observations in ascending order: 2, 3, 5, 6, x, 8, 9. 

Since the number of observations is odd, the median is the middle value in the ordered list. In this case, the fourth observation, which is 6, represents the median.

  • To identify the values that x cannot be equal to, we need to consider the possible positions of x in the ordered list. 
  • If x is less than 6, it would be positioned to the left of 6 in the list. In such a case, the median would be greater than 6, as the middle value would shift to a higher number. Therefore, x cannot be less than 6.
  • If x is greater than 6, it would be positioned to the right of 6 in the ordered list. In this case, the median would still be 6 since it represents the middle value. Therefore, x can be greater than 6.
  • If x equals 6, it would coincide with the median, as it represents the middle value in the ordered list. Therefore, x can be equal to 6.

Hence, considering the given information that the median is known to be 6, it can be concluded that x cannot be equal to 1, as it is less than 6.

Question 48

If r12 = 0.7, r13 = 0.72 and r23 = 0.52, then r23.1 =

  1. AOption (a)

    0.7211

  2. BOption (b)

    0.5

  3. COption (c)

    0.8

  4. DOption (d)

    0.032

View answer & explanation

Correct answer

Answer: (d)D.

0.032

Why this answer is correct

The correct answer is 0.032

Key Points 

In multiple correlations, the correlation between two variables is denoted by the subscripted notation "rxy," where x and y represent the variables involved. In this case, "r12" represents the correlation between variables 1 and 2, while "r21" represents the correlation between variables 2 and 1.

Since correlation measures the linear relationship between two variables, it follows that "r12" is equal to "r21." The correlation between variables 1 and 2 is the same as the correlation between variables 2 and 1. Thus, "r12" can indeed be equal to "r21" in multiple correlations. 

Here,  r12 = 0.7, r13 = 0.72 and r23 = 0.52 can be interpreted as  r21 = 0.7, r31 = 0.72 and r23 = 0.52

Now, 

r23.1=r23−r21r31(1−r212)(1−r312)\rm r_{23.1}=\frac{r_{23}-r_{21}r_{31}}{\sqrt{\left(1-r_{21}^2\right)\left(1-r_{31}^2\right)}}

r12 = r21 = 0.7

r13 = r31 = 0.72

r23 = 0.52

r23.1=0.52−0.7×0.72(1−0.72)(1−0.722)\rm r_{23.1}=\frac{0.52-0.7\times 0.72}{\sqrt{(1-0.7^2)(1-0.72^2)}}

=0.52−0.5041−0.491−0.5184\rm =\frac{0.52-0.504}{\sqrt{1-0.49}\sqrt{1-0.5184}}

=0.0160.51×0.4816=\rm \frac{0.016}{\sqrt{0.51}\times \sqrt{0.4816}}

=0.0160.49=\rm \frac{0.016}{0.49}

= 0.032

Hence,  r23.1 = 0.032

Question 49

Mean ±2 σ under normal curve covers: 

  1. AOption (a)

    68.27% area 

  2. BOption (b)

    95.45% area 

  3. COption (c)

    80.00% area 

  4. DOption (d)

    99.73% area 

View answer & explanation

Correct answer

Answer: (b)B.

95.45% area 

Why this answer is correct

The correct answer is 95.45% area 

Key Points 

  • In a normal distribution, the range of values that are defined by the mean ±2 standard deviations (±2σ) encompasses approximately 95.45% of the total area under the curve.
  • This statistical property is commonly referred to as the "empirical rule" or the "68-95-99.7 rule." It provides a rough estimation of the proportion of data points that fall within a certain number of standard deviations from the mean in a normal distribution.
  • According to this rule:
  • Approximately 68% of the data falls within one standard deviation (±1σ) of the mean. This means that the majority of the data points (about 68%) are located within a range that extends one standard deviation on either side of the mean.
  • Approximately 95% of the data falls within two standard deviations (±2σ) of the mean. In other words, the vast majority of the data points (about 95%) are contained within a range that extends two standard deviations on either side of the mean.
  • Approximately 99.7% of the data falls within three standard deviations (±3σ) of the mean. This indicates that almost all of the data points (about 99.7%) are found within a range that extends three standard deviations on either side of the mean.
  • The empirical rule provides a convenient way to estimate the spread and distribution of data in a normal distribution.
  • It highlights the fact that data tends to cluster around the mean and becomes less frequent as it moves farther away from the mean, following a symmetric pattern.
  • While the empirical rule provides only rough estimates, it is often applied to many real-world datasets that exhibit a normal distribution or approximate normality.

Consequently, when considering the range of mean ±2σ, it encompasses an approximate area of 95.45% under the normal curve.

Question 50

The method of least squares is used on time-series data for:  

  1. AOption (a)

    deseasonalising the data 

  2. BOption (b)

    obtaining the trend equation 

  3. COption (c)

    exponentially smoothing a series 

  4. DOption (d)

    eliminating irregular movements 

View answer & explanation

Correct answer

Answer: (b)B.

obtaining the trend equation 

Why this answer is correct

The correct answer is 

Key Points

  • The method of least squares is commonly employed in the analysis of time-series data to obtain the trend equation.
  • This method aims to find the best-fitting line that minimizes the sum of the squared differences between the observed data points and the corresponding values predicted by the trend equation.
  • By fitting a trend line to the time-series data, we can estimate and model the underlying trend or pattern present in the data, which helps in forecasting future values or understanding the overall direction of change.

Question 51

Which of the following graphs can be used for the representation of a cumulative frequency distribution? 

  1. AOption (a)

    Histogram 

  2. BOption (b)

    Bar chart

  3. COption (c)

    Ogive curve

  4. DOption (d)

    Pie chart

View answer & explanation

Correct answer

Answer: (c)C.

Ogive curve

Why this answer is correct

The correct answer is Ogive curve.

Key Points 

  • The graph that can be used for the representation of a cumulative frequency distribution is the Ogive curve.
  • An Ogive curve, also known as a cumulative frequency curve or an "S" curve, is constructed by plotting the cumulative frequencies against the upper boundaries of the class intervals in a frequency distribution. The cumulative frequency represents the total frequency up to a particular class or data point.
  • By plotting the cumulative frequencies, an Ogive curve provides a visual representation of how the cumulative frequencies accumulate or increase as we move along the data values. It allows us to analyze the cumulative distribution and observe patterns such as the relative concentration of data points and the steepness of the curve.
  • Ogive curves are particularly useful in analyzing and interpreting cumulative frequency distributions, as they help us understand the distribution of data and make comparisons between different datasets or subgroups within a dataset.

Additional Information

  • Less than Ogive: A less than Ogive, also known as a cumulative frequency curve for values less than a given class boundary, represents the cumulative frequencies up to each class boundary. It plots the cumulative frequency against the upper boundaries of the class intervals. The curve shows how the cumulative frequency increases as we move from the lower values towards the upper values of the data.
  • More than Ogive: A more than Ogive, also known as a cumulative frequency curve for values more than a given class boundary, represents the cumulative frequencies from each class boundary onwards. It plots the cumulative frequency against the lower boundaries of the class intervals. The curve illustrates how the cumulative frequency increases as we move from the higher values towards the lower values of the data.

  • Both less than ogive and more than ogive provide visual representations of cumulative frequency distributions, allowing for the analysis of how frequencies accumulate in datasets.
  • The median derived from ogives is the value corresponding to the point where the ogive curve intersects the cumulative frequency of 50%, indicating the middle point of the data distribution.
  • These curves assist in understanding the overall distribution and characteristics of the data, such as the concentration of values and the shape of the cumulative distribution.

Hence, ogive curves can be used as the representation of a cumulative frequency distribution.

Question 52

For a distribution, the first four moments about the origin are -1.3, 15, -26 and 102. The third moment about the mean is: 

  1. AOption (a)

    28.1

  2. BOption (b)

    27.9

  3. COption (c)

    21.9

  4. DOption (d)

    25.6

View answer & explanation

Correct answer

Answer: (a)A.

28.1

Why this answer is correct

The correct answer is 28.1

Key Points

The first, second, third and fourth moments about the mean are given as μ1=(−1.3),μ2=15,μ3=(−26),μ4=102\mu_1 =(-1.3), \mu_2=15, \mu_3=(-26), \mu_4=102; where μ1=0\mu_1 = 0, μ2=μ2′−(μ1′)2\mu_2 = \mu'_2 - (\mu'_1)^2, and, μ3=μ3′−3μ2′μ1′+2(μ1′)3\mu_3 = \mu'_3 - 3\mu'_2\mu'_1 + 2(\mu'_1)^3. Therefore, plugging the information into the equation of the third moment about the mean, we have 

μ3=μ3′−3μ2′μ1′+2(μ1′)3\mu_3 = \mu'_3 - 3\mu'_2\mu'_1 + 2(\mu'_1)^3

or, μ3=(−26)−3×15×(−1.3)+2(−1.3)3\mu_3 = (-26) - 3 \times 15 \times (-1.3) + 2(-1.3)^3

or, μ3=−26+58.5−4.394\mu_3 = -26 + 58.5 -4.394

or, μ3≈28.1\mu_3 \approx 28.1

Hence, the third moment about the mean is 28.1

Question 53

If the value of the first four raw moments is 2, 4, 5 and 6, respectively. then the value of the fourth central moment is: 

  1. AOption (a)

    10

  2. BOption (b)

    16

  3. COption (c)

    12

  4. DOption (d)

    14

View answer & explanation

Correct answer

Answer: (d)D.

14

Why this answer is correct

The correct answer is 14

Key Points 

The raw moments (or moments about the origin) and the central moments (or moments about the mean) are two different ways of characterizing a probability distribution. The raw moments are calculated at about 0, while the central moments are calculated at about the mean.

The first four raw moments of a distribution, as you specified, are given as 2, 4, 5, and 6 respectively. These tell us about the mean, variance, skewness, and kurtosis of the distribution respectively.

The first raw moment is the mean (µ) of the distribution. So, in this case, the mean is 2.

The second, third, and fourth central moments are given by:

  • Second central moment (σ2) = μ2 - μ12
  • Third central moment = μ3 - 3μ1μ2 + 2μ13
  • Fourth central moment = μ4 - 4μ1μ3 + 6μ12μ2 - 3μ14

Substitutiong the given information μ1=2, μ2=4, μ3=5, and μ4=6; 

Now we can substitute these into the formula to find the fourth central moment:

Fourth Central Moment = μ4−4μ1μ3+6μ12μ2−3μ14μ_4 - 4μ_1μ_3 + 6μ_1^2μ_2 - 3μ_1^4 = 6 - 4 × 2 × 5 + 6 × 22× 4 - 3 × 24 = 6 - 40 + 96 - 48 = 14

Hence, the value of the fourth central moment is 14.

Question 54

If the correlation coefficient between X and Y is 0.7, then the correlation coefficient between U and V, where U = X - 5 and V = Y + 2, is: 

  1. AOption (a)

    0.36

  2. BOption (b)

    0.5

  3. COption (c)

    0.7

  4. DOption (d)

    0.75

View answer & explanation

Correct answer

Answer: (c)C.

0.7

Why this answer is correct

The correct answer is 0.7

Key Points 

The correlation coefficient, denoted by r, quantifies the linear relationship between two random variables. It is formally defined as the covariance between the two variables divided by the product of their standard deviations. 

r=Cov(X,Y)σXσYr = {Cov(X, Y) \over σ_X σ_Y}; where, Cov(X, Y) denotes the covariance between X and Y, σX denotes the standard deviation of X, and σY denotes the standard deviation of Y.

Let's denote the correlation between X and Y as rXY. Therefore, rXY=Cov(X,Y)σXσYr_{XY} = {Cov(X, Y) \over σ_X σ_Y}

Now, considering the transformations U = X - 5 and V = Y + 2, we need to find the correlation coefficient between U and V, denoted by rUVr_{UV}

Given the properties of covariance and variance under linear transformation, we have:

Cov(U, V) = Cov(X - 5, Y + 2) = Cov(X, Y)

σU = σX (since the variance and hence the standard deviation do not change with shifts)

σV = σY (since the variance and hence the standard deviation do not change with shifts)

Then, substituting these into the formula for rUV, we have: rUV=Cov(U,V)σUσV=Cov(X,Y)σXσY=rXYr_{UV} = {Cov(U, V)\over σ_U σ_V} = {Cov(X, Y) \over σ_X σ_Y} = r_{XY} 

In conclusion, a linear transformation that consists of adding or subtracting a constant from a random variable does not affect the correlation coefficient between two variables. Thus, if the correlation coefficient between X and Y is 0.7, the correlation coefficient between U = X - 5 and V = Y + 2 remains 0.7.

Question 55

Error sum of squares (SE2)\rm (S_E^2) is calculated by:

  1. AOption (a)

    ΣiΣj(yij−yˉi.)2\rm \Sigma_i \Sigma_j (y_{ij}-\bar y_{i.})^2

  2. BOption (b)

    ΣiΣj(yij−yˉ..)2\rm \Sigma_i \Sigma_j (y_{ij}-\bar y_{..})^2

  3. COption (c)

    ΣiΣj(yij−yˉi.)\rm \Sigma_i \Sigma_j (y_{ij}-\bar y_{i.})

  4. DOption (d)

    ΣiΣj(yˉi−yˉ..)2\rm \Sigma_i \Sigma_j (\bar y_{i}-\bar y_{..})^2

View answer & explanation

Correct answer

Answer: (a)A.

ΣiΣj(yij−yˉi.)2\rm \Sigma_i \Sigma_j (y_{ij}-\bar y_{i.})^2

Why this answer is correct

The correct answer is 

Key Points 

The Error Sum of Squares (SSE) is a measure of the amount of variability in the data that is not explained by the statistical model. It is often used in the context of regression analysis or ANOVA (Analysis of Variance). However, the formula you provided seems to correspond to the calculation of the "within-group" sum of squares for a one-way ANOVA, rather than the error sum of squares. In the context of a one-way ANOVA, where we are comparing means of different groups: 

  • yij represents the jth observation in the ith group.
  • yˉi\bar{y}_i represents the mean of the ith group.

The "within-group" sum of squares (which is analogous to the Error Sum of Squares in this context) is then calculated as: ΣiΣj(yij−yˉi.)2\rm \Sigma_i \Sigma_j (y_{ij}-\bar y_{i.})^2

This calculates the squared deviations of each observation from their respective group means and then sums all these squared deviations. This gives a measure of the variability within each of the groups.

However, in a more general context (like a regression analysis), the Error Sum of Squares is calculated as the sum of the squared deviations of the observed values from the values predicted by the model.

In this case, it yi is the observed value and y^i\hat{y}_i is the value predicted by the model for the ith observation, the Error Sum of Squares (SSE) would be: SSE=Σi(yi−y^i)2SSE = \Sigma_i(y_i - \hat{y}_i)^2Unknown node type: spanUnknown node type: spanUnknown node type: span

This calculates the squared deviations of each observation from its predicted value and then sums all these squared deviations. This gives a measure of the variability in the data that is not explained by the model.

Question 56

If a random variable X following Poisson distribution has expectation λ, then which of the following statements is true?

  1. AOption (a)

    P(X=λ)=λλ+1P(X=λ+1)\rm P(X=\lambda)=\frac{\lambda}{\lambda+1}P(X=\lambda+1)

  2. BOption (b)

    P(X=λ)=λ+1λP(X=λ+1)\rm P(X=\lambda)=\frac{\lambda+1}{\lambda}P(X=\lambda+1)

  3. COption (c)

    P(X=λ)=λ(λ+1)eP(X=λ+1)\rm P(X=\lambda)=\frac{\lambda}{(\lambda+1)e}P(X=\lambda+1)

  4. DOption (d)

    P(X=λ)=λeλ+1P(X=λ+1)\rm P(X=\lambda)=\frac{\lambda e}{\lambda+1}P(X=\lambda+1)

View answer & explanation

Correct answer

Answer: (b)B.

P(X=λ)=λ+1λP(X=λ+1)\rm P(X=\lambda)=\frac{\lambda+1}{\lambda}P(X=\lambda+1)

Why this answer is correct

Key Points A random variable X is given that follows a Poisson distribution with parameter λ, which represents the expected number of events in an interval. The probability mass function (PMF) of a Poisson-distributed random variable is given as follows: P(X=k)=λke(−λ)1k!P(X = k) = λ^k e^{(-λ)} {1 \over k!} for k = 0, 1, 2, ...

Therefore, we can write: P(X=λ)=λλe(−λ)1λ!P(X = λ) = λ^λ e^{(-λ)} {1 \over λ!}and P(X=λ+1)=λ(λ+1)e(−λ)(λ+1)!P(X = λ + 1) = λ^{(λ + 1)} e^{{(-λ)} \over (λ + 1)!}

Taking the ratio of these two probabilities, we have: 

P(X=λ)P(X=λ+1)=[λλ×e(−λ)1λ!][λ(λ+1)×e(−λ)1(λ+1)!]{P(X = \lambda) \over P(X = \lambda + 1)} = {{{[\lambda^\lambda \times e^{(-\lambda)} {1 \over \lambda!}]} \over {[\lambda^{(\lambda + 1)} \times e^{(-\lambda)} {1 \over (\lambda + 1)!}]}}}

=λλλ(λ+1)×(λ+1)!λ!={{\lambda^\lambda \over {\lambda^{(\lambda+1)}}} \times {{(\lambda+1)!} \over λ!}}

=λ+1λ= {\lambda +1 \over \lambda}

Rearranging the above equation gives us the relation between the two probabilities: 

P(X=λ)=λ+1λP(X=λ+1)\rm P(X=\lambda)=\frac{\lambda +1}{\lambda}P(X=\lambda+1)

Question 57

Which of the following is NOT a basic assumption of one-way ANOVA? 

  1. AOption (a)

    k samples have approximately unequal variances 

  2. BOption (b)

    Error terms eij are independently and identically distributed as normal with mean zero and variance σe2.

  3. COption (c)

    Dependent variable is quantitative 

  4. DOption (d)

    Various effects follow additivity 

View answer & explanation

Correct answer

Answer: (a)A.

k samples have approximately unequal variances 

Why this answer is correct

The correct answer is k samples have approximately unequal variances.

Key Points

  • The basic assumptions of one-way ANOVA are as follows: 
  • The error terms (residuals) are independently and identically distributed as normal with mean zero and constant variance (homoscedasticity).
  • The dependent variable is quantitative and continuous.
  • The various effects, such as the group means, follow additivity.
  • The observations within each group are independent of each other.
  • Error terms eij are independently and identically distributed as normal with mean zero and variance σe2:
  • This assumption states that the error terms (residuals) in each group are normally distributed with a mean of zero and constant variance (homoscedasticity). It also assumes that the errors are independent, meaning that the error in one observation is not related to the errors in other observations.
  • The dependent variable is quantitative:
  • ​This assumption states that the dependent variable being analyzed in the one-way ANOVA is a quantitative variable, typically measured on a continuous scale. The ANOVA is not suitable for categorical or ordinal variables.
  • Various effects follow additivity:
  • This assumption states that the effects of different factors in the model, such as the group means or treatment effects, are additive. In other words, the overall effect of a combination of factors can be obtained by adding the individual effects of each factor.
  • k samples have approximately unequal variances: 
  • It states that the k samples have approximately unequal variances. However, this assumption is not a basic assumption of one-way ANOVA. Instead, the basic assumption is that the variances within each group are approximately equal (homoscedasticity). Unequal variances can cause issues with the validity of ANOVA results.

Hence, this is not a basic assumption of one-way ANOVA.

Question 58

Let x, s2 be the mean and variance of a random sample taken from a normal distribution with mean (μ) and standard deviation (σ). Then which of the following is/are parameter/s?

  1. AOption (a)

    Both μ and σ 

  2. BOption (b)

    Only x̅

  3. COption (c)

    Only σ 

  4. DOption (d)

    Both x̅, s2

View answer & explanation

Correct answer

Answer: (a)A.

Both μ and σ 

Why this answer is correct

The correct answer is Both μ and σ. 

Key Points

  • In statistics, a parameter is a numerical value that describes a population characteristic. In the given scenario, x and s^2 refer to the sample mean and sample variance, respectively. These are statistics calculated from the sample data and are used to estimate the population parameters.
  • On the other hand, μ represents the population mean, which is the true average value of the variable of interest in the population. σ represents the population standard deviation, which describes the variability of the variable in the population.

Since μ and σ are population parameters that characterize the underlying normal distribution, they are considered as the parameters in this case.

Question 59

The main purpose of analysis of variance is to test the: 

  1. AOption (a)

    homogeneity of means for several populations 

  2. BOption (b)

    homogeneity of variances for several populations 

  3. COption (c)

    homogeneity of coefficient of kurtosis for several populations 

  4. DOption (d)

    homogeneity of standard deviations for several populations 

View answer & explanation

Correct answer

Answer: (a)A.

homogeneity of means for several populations 

Why this answer is correct

The correct answer is homogeneity of means for several populations.  

Key Points

  • The main purpose of analysis of variance (ANOVA) is indeed to test the homogeneity of means for several populations or groups. ANOVA is a statistical technique that allows us to compare the means of two or more groups to determine if they are significantly different from each other. It helps in understanding whether there are any significant differences in the population means across the different groups or treatments being compared.
  • The null hypothesis in ANOVA assumes that the means of all the populations or groups are equal. The alternative hypothesis suggests that at least one of the group means is different from the others. By analyzing the variability within and between the groups, ANOVA provides a statistical test to assess if the observed differences in the means are likely due to random variation or if they represent true differences.

In summary, ANOVA is specifically designed to determine if there are significant differences in means across multiple populations or groups, thereby assessing the homogeneity or equality of means.

Question 60

If Laspeyres’ index is 223 and Paasche’s index number is 169, then Fisher's ideal index number is: 

  1. AOption (a)

    194.1314

  2. BOption (b)

    165

  3. COption (c)

    187

  4. DOption (d)

    198

View answer & explanation

Correct answer

Answer: (a)A.

194.1314

Why this answer is correct

The correct answer is None of the above/More than one of the above

Key Points

Fisher's Ideal index number is calculated as the geometric mean of Laspeyres' and Paasche's index numbers. The geometric mean is a type of average that is calculated by taking the nth root of the product of n values. Given, Laspeyres' index of 223 and Paasche's index of 169. To calculate Fisher's Ideal index number, we have the formula: 

(Laspeyres′index×Paasche′sindex)=(223×169)=37687≈194.1314\sqrt {(Laspeyres' index \times Paasche's index)} = \sqrt{(223 \times 169)} = \sqrt{37687} \approx 194.1314

Question 61

If the sum of 10 observations is 12 and the sum of their squares is 18, then the standard deviation is: 

  1. AOption (a)

    4/5

  2. BOption (b)

    2/5

  3. COption (c)

    3/5

  4. DOption (d)

    1/5

View answer & explanation

Correct answer

Answer: (c)C.

3/5

Why this answer is correct

The correct answer is 3/5

Key Points

Standard deviation = (xi−xˉ)2n=Variance\sqrt{{{(x_i - \bar x)}^2} \over n} = \sqrt {Variance}  

Therefore, Variance V(X) = 1n(xi−xˉ)2{1 \over n} {{(x_i - \bar x)}^2}

or, v(x)=1n[Σ(xi2−2×xi×xˉ+xˉ2)]\rm v(x)=\frac{1}{n}\left[\Sigma(x_i^2-2\times x_i \times \bar x+\bar x^2)\right]

=Σxi2n−2xˉ(Σxin)+Σxˉ2n\rm =\frac{\Sigma x_i^2}{n}-2 \bar x\left(\frac{\Sigma x_i}{n}\right)+\frac{\Sigma \bar x^2}{n}

=Σxi2n−2xˉ2+n.xˉ2n=\rm \frac{\Sigma x_i^2}{n}-2\bar x^2+\frac{n.\bar x^2}{n}

=Σxi2n−2xˉ2+xˉ2\rm = \frac{\Sigma x_i^2}{n}-2\bar x^2+\bar x^2

V(x)=Σxi2n−xˉ2\rm V(x)=\frac{\Sigma x_i^2}{n}-\bar x^2

Given, the sum of 10 observations is 12 and the sum of their squares is 18. 

Thus, n = 10, ∑xi=12\sum x_i = 12, ∑xi2=18\sum x_i^2 = 18 

Therefore, mean xˉ=1.2\bar x = 1.2

Plugging this information into the equation of variance V(X), we have

V(x)=Σxi2n−xˉ2\rm V(x)=\frac{\Sigma x_i^2}{n}-\bar x^2

=110×18−(1.2)2=\frac{1}{10}\times 18-(1.2)^2

= 1.8 - 1.44

=0.36

Hence, the required standard deviation = Variance=(0.36)=0.6=35\sqrt {Variance} = \sqrt{(0.36)} = 0.6 = {3 \over 5}

Question 62

For determining the probability of falling of a ceiling fan, which definition of probability can be applied? 

  1. AOption (a)

    Mathematical definition 

  2. BOption (b)

    Classical definition 

  3. COption (c)

    Empirical definition 

  4. DOption (d)

    Axiomatic definition 

View answer & explanation

Correct answer

Answer: (c)C.

Empirical definition 

Why this answer is correct

The correct answer is Empirical definition 

Key Points

  • When determining the probability of a ceiling fan falling, the empirical definition of probability can be applied. The empirical definition of probability relies on observed frequencies or data to estimate the likelihood of an event.
  • In this context, one would collect data on the occurrence of ceiling fan falls and calculate the proportion or relative frequency of such events. This proportion or relative frequency would then serve as an estimate of the probability of a ceiling fan falling, based on the observed data.

Additional Information

  • The empirical definition of probability is based on observed frequencies or data. It involves calculating the probability of an event by analyzing the relative frequency of its occurrence in a given set of data. This definition is often used when the underlying probability distribution is unknown or difficult to determine theoretically.
  • In the empirical definition, probabilities are estimated by collecting data through observation or experimentation. The relative frequency of an event occurring is calculated as the number of times the event occurs divided by the total number of observations. This relative frequency is then considered an estimate of the probability of the event happening.
  • For example, let's say we want to determine the probability of flipping a fair coin and getting heads. We conduct an experiment by flipping the coin 100 times and observe that heads occurs 60 times. Based on this empirical data, we estimate the probability of getting heads as 60/100, which simplifies to 0.6 or 60%.

Question 63

While performing analysis of variance, the two types of variances which can occur in a data are: 

  1. AOption (a)

    between and within groups  

  2. BOption (b)

    experimenter and respondent 

  3. COption (c)

    independent and confounding 

  4. DOption (d)

    sum of squares and degree of freedom 

View answer & explanation

Correct answer

Answer: (a)A.

between and within groups  

Why this answer is correct

The correct answer is between and within groups  

Key Points

  • In the analysis of variance (ANOVA), two types of variances can occur in the data: between-group variance and within-group variance. The between-group variance represents the variability between the different groups or treatments being compared.
  • It measures how different the group means are from each other. On the other hand, the within-group variance reflects the variability within each group and quantifies the spread of the observations within each group.
  • ANOVA examines both these variances to assess whether the observed differences in the group means are statistically significant.

Additional Information

  • ANOVA (Analysis of Variance) is a statistical technique used to compare means between two or more groups or treatments. It assesses whether there are any significant differences in the means of the groups, indicating that there may be a relationship between the groups and the dependent variable being measured.
  • The main objective of ANOVA is to partition the total variability observed in the data into different components to determine the relative contributions of different sources of variation. These sources of variation can be categorized into two main types: between-group variation and within-group (or within-treatment) variation.

Hence, while performing analysis of variance, the two types of variances which can occur in a data are between and within groups.

Question 64

The mean and variance of a binomially distributed random variable X are 8 and 4, respectively, then P(X = 1) is equal to: 

  1. AOption (a)

    1/26

  2. BOption (b)

    1/28

  3. COption (c)

    1/212

  4. DOption (d)

    1/216

View answer & explanation

Correct answer

Answer: (c)C.

1/212

Why this answer is correct

The correct answer is 1/212

Key Points 

In a binomial distribution, the random variable X represents the number of successes in a fixed number of independent Bernoulli trials, where each trial has two possible outcomes: success (usually denoted as "1") with probability p and failure (usually denoted as "0") with probability q = 1 - p. 

Given that the mean (μ) of the binomial distribution is 8 and the variance (σ^2) is 4, we can deduce the following relationships: μ = npσ2 = npq

In this case, since the variance is equal to 4, we have: 4 = 8pq

From the mean, we know that μ = np = 8.

By rearranging the equation, we can solve for p: p = 8/n

Substituting this value of p into the equation for variance, we get:

4=8×8n×q×4=64qn4 = 8 × {8 \over n} × q × 4 = {64q \over n}

Now, we can solve for q: q=n16 q = {n \over 16}

Since p + q = 1, we have: 8n+n16=1{8 \over n} + {n \over 16} = 1

To solve this equation, we can multiply through by 16n: 128 + n2 = 16n n2 - 16n + 128 = 0

By solving this quadratic equation, we find two possible values for n: n = 8 ± 4√2.

Since n represents the number of trials, it cannot be a negative value. Thus, we take n = 8 + 4√2.

Now, we can calculate P(X = 1) using the formula for a binomial distribution: P(X = 1) = nC1 × p1 × q(n-1)

Substituting the values of n and p, we get the numerical value of P(X = 1), which is approximately 1/212.

Therefore, the probability of X being equal to 1 in this scenario is approximately 1/212.

Question 65

Suppose a sample of size n is drawn from a population with mean μ and variance σ2. The standard error of x̅ is:

  1. AOption (a)

    σ 

  2. BOption (b)

    2σ/√n

  3. COption (c)

    σ/n

  4. DOption (d)

    σ/√n

View answer & explanation

Correct answer

Answer: (d)D.

σ/√n

Why this answer is correct

The correct answer is σ/√n

Key Points

  • Let a random sample of size n be drawn from a population with mean μ and variance σ2, then
  • The formula to calculate the standard error of the sample mean is: SE(x̅) = σ / √n; where: 
  • σ represents the population standard deviation.
  • n represents the sample size.
  • The standard error of the sample mean is inversely proportional to the square root of the sample size. As the sample size increases, the standard error decreases, indicating a more precise estimate of the population mean.
  • The standard error is useful in hypothesis testing and constructing confidence intervals for the population mean. It provides an indication of the likely range within which the true population mean lies based on the variability of sample means.
  • In summary, the standard error of the sample mean quantifies the uncertainty associated with using the sample mean as an estimate of the population mean. It depends on the population standard deviation and the sample size, with larger sample sizes leading to smaller standard errors and more precise estimates.

Question 66

In a party attended by 120 persons, 85 prefer cold drink over a hot drink. The probability that a person orders a hot drink is:

  1. AOption (a)

    7/24

  2. BOption (b)

    6/23

  3. COption (c)

    7/32

  4. DOption (d)

    8/21

View answer & explanation

Correct answer

Answer: (a)A.

7/24

Why this answer is correct

The correct answer is 7/24

Key Points 

  • To calculate the probability that a person orders a hot drink at the party, we need to determine the number of people who prefer hot drinks out of the total number of people attending the party. Given that 85 people prefer cold drinks, the remaining number of people who prefer hot drinks would be:
  • Total number of people - Number of people who prefer cold drinks = 120 - 85 = 35
  • Therefore, out of the 120 people attending the party, 35 prefer hot drinks.
  • To calculate the probability of a person ordering a hot drink, we divide the number of people who prefer hot drinks by the total number of people:
  • Probability of ordering a hot drink

= Number of people who prefer hot drinks / Total number of people Probability of ordering a hot drink

= 35 / 120

  • Probability of ordering a hot drink = 7/24
  • Thus, the probability that a person orders a hot drink at the party is 7/24.

Question 67

In a randomised block design with eight treatments and five blocks, the degrees of freedom for total sum of squares is: 

  1. AOption (a)

    39

  2. BOption (b)

    28

  3. COption (c)

    27

  4. DOption (d)

    32

View answer & explanation

Correct answer

Answer: (a)A.

39

Why this answer is correct

The correct answer is 39

Key Points 

  • In a randomized block design, the total sum of squares (SST) measures the total variability in the response variable across all treatments and blocks. To determine the degrees of freedom (df) for the total sum of squares, we subtract 1 from the total number of observations.
  • In this case, the randomized block design has eight treatments and five blocks.
  • The total number of observations can be calculated by multiplying the number of treatments by the number of blocks:
  • Total number of observations

= Number of treatments × Number of blocks Total number of observations

= 8 ×  5 

= 40

  • To find the degrees of freedom for the total sum of squares, we subtract 1 from the total number of observations:
  • Degrees of freedom (df) for the total sum of squares

= Total number of observations - 1 Degrees of freedom (df) for the total sum of squares

= 40 - 1

​= 39

Therefore, the degrees of freedom for the total sum of squares in the randomized block design with eight treatments and five blocks is 39.

Question 68

For a symmetric distribution: 

  1. AOption (a)

    Skewness = 0, Kurtosis = 3 

  2. BOption (b)

    Skewness = 1, Kurtosis = 1 

  3. COption (c)

    Skewness = 0, Kurtosis = 1 

  4. DOption (d)

    Skewness = 1, Kurtosis = 3 

View answer & explanation

Correct answer

Answer: (a)A.

Skewness = 0, Kurtosis = 3 

Why this answer is correct

The correct answer is Skewness = 0, Kurtosis = 3.  

Key Points

For a perfectly symmetric distribution, it is true that the skewness is 0. Skewness is a measure of the asymmetry of the probability distribution of a real-valued random variable about its mean. A skewness of 0 indicates that the data are symmetric around the mean. 

Kurtosis is a measure of the "tailedness" of the probability distribution of a real-valued random variable. In statistics, there are several ways to define kurtosis. The most common definition is excess kurtosis, which is the kurtosis of a distribution relative to the kurtosis of the normal distribution. The normal distribution has a kurtosis of 3.

Question 69

What is the coefficient of variation of a series for which the mean is 10 and standard deviation is 5?  

  1. AOption (a)

    0.5

  2. BOption (b)

    0.25

  3. COption (c)

    1.6

  4. DOption (d)

    2

View answer & explanation

Correct answer

Answer: (a)A.

0.5

Why this answer is correct

The correct answer is 0.5

Key Points 

The coefficient of variation (CV) is a measure of relative variability. It is the ratio of the standard deviation to the mean. 

In this case, the mean (μ) is 10 and the standard deviation (σ) is 5. 

CV =σμ=510=0.5= {σ \over μ} = {5 \over 10} = 0.5

The coefficient of variation for this series would be 0.5, or when expressed as a percentage, 50%.

⇒This means the standard deviation is 50% of the mean. This ratio provides a standardized measure of variability, regardless of the units of measurement.

Question 70

The most frequently occurring observation in a data set is called: 

  1. AOption (a)

    geometric mean 

  2. BOption (b)

    mode

  3. COption (c)

    median

  4. DOption (d)

    mean

View answer & explanation

Correct answer

Answer: (b)B.

mode

Why this answer is correct

The correct answer is mode.

Key Points 

In statistics, the mode is the value that appears most frequently in a data set.

A set of data may have one mode, more than one mode, or no mode at all. 

  • Unimodal: A data set with one mode
  • Bimodal: A data set with two modes
  • Multimodal: A data set with more than two modes
  • No mode: A data set with no repeated values

The mode is one of the three main measures of central tendency, the other two being the mean (average) and the median (middle value). It can be used for both numerical and categorical data.

Question 71

The simple index number for the following information is: 

20082011
ItemPricePrice
I57
II78
III911
IV1215
  1. AOption (a)

    143.25

  2. BOption (b)

    112.35

  3. COption (c)

    168.34

  4. DOption (d)

    124.24

View answer & explanation

Correct answer

Answer: (d)D.

124.24

Why this answer is correct

The correct answer is 124.24

Key Points In this context, the base year is 2008 and the current year is 2011

ItemsPrice (Po) in 2008Price (P1) in 2011
I57
II78
III911
IV1215
Total∑P0=33\sum P_0 = 33∑P1=41\sum P_1 = 41

Hence, the Simple Index Number =∑P1∑P0×100= {{\sum P_1} \over {\sum P_0}} \times 100 = 4133×100=124.24{41 \over 33} \times 100 = 124.24

Question 72

Let \rm f(x)=\left{\begin{matrix}0\ for\ x<0\\ 3x^2\ for\ 0\le x\le 1 \\ 0\ for\ x>1\end{matrix}\right. be the probability function of a continuous random variable X. The value of P(12<X<32)P\left(\frac{1}{2}<X < \frac{3}{2}\right) is:

  1. AOption (a)

    3/8

  2. BOption (b)

    7/8

  3. COption (c)

    1/2

  4. DOption (d)

    1/8

View answer & explanation

Correct answer

Answer: (b)B.

7/8

Why this answer is correct

The correct option is b.

Detailed Solution:

Concept:

Probability Density Function Properties:

Let x be the continuous random variable with density function f(x), and the probability density function should satisfy the following conditions:

  • For a continuous random variable that takes some value between certain limits, say a and b, the PDF is calculated by finding the area under its curve and the X-axis within the lower limit (a) and upper limit (b). Thus, the PDF is given b.     P(x)=∫abf(x),dxP(x) = \int_{a}^{b} f(x) ,dx
  • �(�)=∫���(�) ���(�)=∫���(�) ���(�)=∫���(�) ��[Math Processing Error]�(�)=∫���(�) ���(�)=∫���(�) ��
  • The probability density function is non-negative for all the possible values, i.e. f(x)≥ 0, for all x.
  • The area between the density curve and the horizontal X-axis is equal to 1, i.e.

∫∞∞f(x),dx=1\int_{\infty}^{\infty} f(x) ,dx = 1∫∞−∞�(�) ��=1∫∞−∞�(�) ��=1∫∞−∞�(�) ��=1[Math Processing Error]∫∞−∞�(�) ��=1∫∞−∞�(�) ��=1∫∞−∞�(�) ��=1∫∞−∞�(�) ��=1

  • Due to the property of continuous random variables, the density function curve is continued all over the given range. Also, this defines itself over a range of continuous values or the domain of the variable.

Calculation:

\rm F(x)=\left{\begin{matrix}0& \rm for\ x<0\\ 3x^2&\rm for \ 0\le x\le 1\\ 0& \rm for\ x>1\end{matrix}\right.

P(12<x<32)=∫1/23/2F(x)dx\rm P\left(\frac{1}{2}<x<\frac{3}{2}\right)=\int_{1/2}^{3/2}F(x) dx

=∫1/213x2dx+∫13/20.dx=\int_{1/2}^{1}3x^2dx+\int_{1}^{3/2}0.dx

=x1/21=1−18=\rm {x}^1_{1/2}=1-\frac{1}{8}

=78=\frac{7}{8}

Question 73

Suppose a number is chosen at random from the set {1,2,3,4}. For events A: {1,3}. B: {1,2} and C: {1,4}, which of the following does NOT hold? 

  1. AOption (a)

    B and C are independent 

  2. BOption (b)

    A and C are independent  

  3. COption (c)

    A and B are independent 

  4. DOption (d)

    A, B and C are independent  

View answer & explanation

Correct answer

Answer: (d)D.

A, B and C are independent  

Why this answer is correct

The correct answer is A, B and C are independent  

Key Points  In probability, two events A and B are said to be independent if the occurrence of one does not affect the probability of the occurrence of the other.

In other words, if A and B are independent, then P(A ∩ B) = P(A) × P(B).

If three events A, B, and C are independent, then the following must hold: 

  • P(A ∩ B) = P(A) × P(B)
  • P(A ∩ C) = P(A) × P(C)
  • P(B ∩ C) = P(B) × P(C)
  • P(A ∩ B ∩ C) = P(A) × P(B) × P(C)

Given the events are A: {1,3}, B: {1,2}, and C: {1,4}

The probability of occurrence of events A, B and C are P(A) = P(B) = P(C) = 0.5 as there are two favourable outcomes out of four. 

The probabilities of intersections are: 

  • P(A ∩ B) = 1/4 = 0.25
  • P(A ∩ C) = 1/4 = 0.25
  • P(B ∩ C) = 1/4 = 0.25
  • P(A ∩ B ∩ C) = 1/4 = 0.25

​Conditions for independence are as follows: 

  • P(A ∩ B) = P(A) × P(B): 0.25 = 0.5 × 0.5 - True
  • P(A ∩ C) = P(A) × P(C): 0.25 = 0.5 × 0.5 - True
  • P(B ∩ C) = P(B) × P(C): 0.25 = 0.5 × 0.5 - True
  • P(A ∩ B ∩ C) = P(A) × P(B) × P(C): 0.25 ≠ 0.5 × 0.5 × 0.5 - False

​Hence, when selecting from the set {1,2,3,4}, the events A: {1,3}, B: {1,2}, and C: {1,4} are not mutually independent, despite their pairwise independence.

Question 74

For two investment opportunities A and B, the expected monetary values are 900 and 600 and the corresponding standard deviations are 100 and 50, respectively. If CD denotes the coefficient of dispersion, then:  

  1. AOption (a)

    CA(A) = 0

  2. BOption (b)

    CD(A) > CD(B)

  3. COption (c)

    CD(A) = CD(B)

  4. DOption (d)

    CD(A) < CD(B)

View answer & explanation

Correct answer

Answer: (b)B.

CD(A) > CD(B)

Why this answer is correct

The correct answer is CD(A) > CD(B)

Key Points

  • The coefficient of dispersion (CD) is a measure of relative variability, and it is calculated as the ratio of the standard deviation to the mean.
  • Upon assessing two investment prospects, denoted as 'A' and 'B', the respective expected monetary values are quantified as 900 and 600 units. The corresponding standard deviations, representing the variability of these investments, are noted as 100 and 50 units for 'A' and 'B' respectively.
  • Employing the coefficient of dispersion (CD), which elucidates the relative variability by expressing the ratio of the standard deviation to the mean, the computations are as follows:
  • The coefficient of dispersion for investment 'A', CD(A), equates to the standard deviation of 'A' divided by its expected monetary value, yielding 100900=0.1111\frac{100}{900} = 0.1111 (rounded to four decimal places).
  • The coefficient of dispersion for investment 'B', CD(B), equates to the standard deviation of 'B' divided by its expected monetary value, yielding 50600=0.0833\frac{50}{600} = 0.0833 (rounded to four decimal places).
  • Therefore, it is proved that CD(A) > CD(B). ⇒Investment 'A' manifests a higher degree of variability or risk, as compared to investment 'B', when evaluating the ratio of standard deviation to expected monetary value.

Hence, given the information, if CD denotes the coefficient of dispersion, then CD(A) > CD(B).

Question 75

The average weight of a class of 15 students is 42. If the teacher is included, the average weight increases by 1 kg. What is the weight of the teacher? 

  1. AOption (a)

    58 kg

  2. BOption (b)

    40 kg

  3. COption (c)

    55 kg

  4. DOption (d)

    45 kg

View answer & explanation

Correct answer

Answer: (a)A.

58 kg

Why this answer is correct

The correct answer is 50 kg

Key Points The average weight of a class of 15 students is 42. ⇒ Total weight of these 42 students is (42 × 15) = 630 kg

If the teacher is included, the number of persons concerned increases to 16. And, the average weight also increases to 16 kg (as given). 

⇒ The sum of the weight of 16 people is (43 × 16) = 688 kg

Hence, the required weight of the teacher is (688 - 630) kg = 50 kg

Question 76

Fisher's index number is obtained by calculating the geometric mean of: 

  1. AOption (a)

    Marshall Edgeworth and Laspeyre’s index numbers 

  2. BOption (b)

    Marshall Edgeworth and Drobish Bowley index numbers 

  3. COption (c)

    Laspeyre’s and Paasche’s index numbers 

  4. DOption (d)

    Marshall Edgeworth and Paasche’s index numbers 

View answer & explanation

Correct answer

Answer: (c)C.

Laspeyre’s and Paasche’s index numbers 

Why this answer is correct

The correct answer is Laspeyre’s and Paasche’s index numbers 

Key Points 

  • Fisher's Index, commonly referred to as the Fisher Ideal Index, is an economic index number that procures the geometric mean of the Laspeyres and Paasche Index numbers. This technique is named in honour of the esteemed economist Irving Fisher who introduced this method.
  • The mathematical expression for Fisher's Index can be denoted as follows: Fisher's Index = √(Laspeyres Index × Paasche Index)
  • The Fisher Ideal Index is characterised as "ideal" as it successfully satisfies all the prevalent tests or axioms of index numbers, inclusive of the time reversal test and the factor reversal test.
  • The significance of the Fisher's Index lies in its balanced approach towards measurement.
  • While the Laspeyres Index tends to lean towards quantities of the base period, the Paasche Index is biased towards quantities of the current period.
  • Fisher's Index ingeniously combines these two to provide a more neutral and comprehensive measure.

Hence, the Fisher's Index is indeed procured by calculating the geometric mean of the Laspeyres and Paasche Index numbers.

Question 77

A sampling distribution is the probability distribution for which one of the following: 

  1. AOption (a)

    sample statistic 

  2. BOption (b)

    population 

  3. COption (c)

    parameter 

  4. DOption (d)

    sample 

View answer & explanation

Correct answer

Answer: (a)A.

sample statistic 

Why this answer is correct

The correct answer is sample statistic. 

Key Points 

  • A sampling distribution refers to the probability distribution, under repeated sampling, of a statistic derived from a sample of size n drawn from a particular population. The sample statistic is a measure used to quantify some characteristic of a sample, such as its mean or its variance.
  • Consequently, the shape spread and central tendency of this distribution can provide important insights about the population from which the samples were drawn, including how these characteristics would change under repeated sampling.
  • This is a fundamental concept in the fields of statistics and probability, particularly in hypothesis testing and the creation of confidence intervals.

Additional Information

  • The concept of a sampling distribution is crucial in inferential statistics, which involves making predictions or inferences about a population based on a sample from that population.
  • A key feature is the central limit theorem, which states that if you draw a large number of independent, identically distributed random variables from any population, the distribution of the sample mean will approach a normal distribution, regardless of the shape of the population distribution.
  • Therefore, by studying the sampling distribution of a statistic, we can infer properties about the population and assess the accuracy and reliability of the estimates derived from the sample data.

Hence, a sampling distribution is the probability distribution for sample statistics.

Question 78

The range of the Karl Pearson’s coefficient of skewness (Sk) is:

  1. AOption (a)

    -1 ≤ Sk ≤ 1

  2. BOption (b)

    -3 ≤ Sk ≤ 3

  3. COption (c)

    -2.5 ≤ Sk ≤ 2.5

  4. DOption (d)

    -1.5 ≤ Sk ≤ 1.5

View answer & explanation

Correct answer

Answer: (b)B.

-3 ≤ Sk ≤ 3

Why this answer is correct

The correct answer is -3 ≤ Sk ≤ 3 

Key Points

  • Pearson's skewness is calculated by comparing the mean, median, and standard deviation of a distribution. A positive value indicates that the distribution is skewed to the right (tail on the right side), a negative value indicates a left skew (tail on the left side), and a value of zero implies a symmetric distribution.
  • Karl Pearson's coefficient of skewness measures the degree of skewness or asymmetry in a probability distribution. It is calculated as 3 times the ratio of the difference between the mean and the median to the standard deviation. Sk=3×(Mean−Median)Standard DeviationSk = {{3 \times (Mean - Median)} \over {Standard \ Deviation}}
  • The coefficient of skewness can take values between -3 and +3. A positive skewness value indicates a right-skewed distribution, where the tail is on the right side and the majority of the data is concentrated on the left side. A negative skewness value indicates a left-skewed distribution, where the tail is on the left side and the majority of the data is concentrated on the right side. A skewness value of 0 indicates a symmetric distribution.

Hence, the range of Karl Pearson's coefficient of skewness is indeed -3 to +3.

Question 79

For a random variable X with a variance of 4, the variance of Y = 2X + 7 is: 

  1. AOption (a)

    15

  2. BOption (b)

    16

  3. COption (c)

    8

  4. DOption (d)

    4

View answer & explanation

Correct answer

Answer: (b)B.

16

Why this answer is correct

The correct answer is 16

Key Points 

  • Given, that X is a random variable with a variance of 4. This means Var(X) = 4. And, a random variable Y = 2X + 7, which is a linear transformation of X.
  • To find the variance of Y, the most commonly used measure depends on the property that states the variance of a linear transformation.
  • According to this property, if Y = aX + b, where X is a random variable and a and b are constants, then the variance of Y is equal to the square of the constant a multiplied by the variance of X.
  • In this context, a = 2 and X has a variance of 4.
  • Therefore, Var(Y) = (22) × Var(X) = 4 × 4 = 16

Hence, the required variance of Y is 16.

Question 80

For Spearman's rank correlation, if the correlation coefficient is 0.7 and Σi=1ndi2=49.5\rm \Sigma_{i=1}^n d_i^2=49.5 then the value of sample size 'n' is:

  1. AOption (a)

    99

  2. BOption (b)

    20

  3. COption (c)

    10

  4. DOption (d)

    990

View answer & explanation

Correct answer

Answer: (c)C.

10

Why this answer is correct

The correct answer is 10

Key Points

 The Spearman's rank correlation is formulated as: 

ρ=1−6Σdi2n(n2−1)\rm ρ=1-\frac{6\Sigma d_i^2}{n(n^2-1)}

ρ = Spearman's rank correlation coefficient

di = different between the two ranks of each observation

n = number of observation

Given, ρ = 0.7 and Σi=1ndi2=49.5\rm \Sigma_{i=1}^n d_i^2=49.5

Putting the given values into the formula, we get: 

ρ=1−6Σi=1ndi2n(n2−1)\rm \rho=1-\frac{6\Sigma_{i=1}^nd_i^2}{n(n^2-1)}

or, 0.7=1−6×49.5n3−n\rm 0.7=1-\frac{6\times 49.5}{n^3-n}

or, 0.3=6×49.5n3−n\rm 0.3=\frac{6\times 49.5}{n^3-n}

Simplifying the equation we have, n3−n−990=0n^3 - n - 990 = 0

Now, following the method of trial and error, we get: 

  • n = 99 ⇒ 993−99−990≠099^3 - 99 - 990 \neq 0 ⇒ Violated
  • n = 20 ⇒ 203−20−990≠020^3 - 20 - 990 \neq 0 ⇒ Violated
  • n = 10 ⇒ 103−10−990≠010^3 - 10 - 990 \neq 0 ⇒ Satisfied
  • n = 990 ⇒ 9903−990−990≠0990^3 - 990 - 990 \neq 0 ⇒ Violated

Hence, the required sample size is 10.

Question 81

Let M. Md, Mo, Q1 and Q3 denote the mean, median, mode, and first and third quartile of distribution, respectively. Which of the following is correct for positively skewed distribution?  

  1. AOption (a)

    Md < M < M0

  2. BOption (b)

    Q1 + Q3 > 2 Md

  3. COption (c)

    M > Md = M0

  4. DOption (d)

    M < Md < M0

View answer & explanation

Correct answer

Answer: (b)B.

Q1 + Q3 > 2 Md

Why this answer is correct

The correct answer is Q1 + Q3 > 2 Md

Key Points 

  • In a positively skewed distribution, the tail of the distribution extends towards the right side, indicating that there are relatively more extreme values on the right side of the distribution. As a result, the median (Md) tends to be smaller than the mean (M) in such distributions.
  • When examining quartiles, the first quartile (Q1) represents the value below which approximately 25% of the data lies, and the third quartile (Q3) represents the value below which approximately 75% of the data lies. Since the distribution is positively skewed, Q3 tends to be farther away from the median (Md) compared to Q1.
  • Therefore, in a positively skewed distribution, it holds true that Q1 + Q3 is greater than 2 times the median (Q1 + Q3 > 2Md). This inequality is a consequence of the long tail on the right side, resulting in a larger spread in the upper half of the distribution relative to the lower half.

Question 82

If the correlation coefficient is zero, then the angle between the two lines of regression is: 

  1. AOption (a)

    3π/4

  2. BOption (b)

    π 

  3. COption (c)

    π/4

  4. DOption (d)

    π/2

View answer & explanation

Correct answer

Answer: (d)D.

π/2

Why this answer is correct

The correct answer is π/2

Key Points 

  • If the correlation coefficient between two variables is zero, then the angle between the two lines of regression is π/2 (90 degrees).
  • The lines of regression represent the best-fit lines that minimize the vertical distances between the data points and the line. In simple linear regression, there are two lines of regression: one representing the regression of Y on X and the other representing the regression of X on Y.
  • When the correlation coefficient is zero, it indicates that there is no linear relationship between the variables. In other words, the variables are not linearly associated.
  • Consequently, the lines of regression will be perpendicular to each other, resulting in an angle of π/2 (90 degrees) between them.
  • This relationship holds because a zero correlation implies that the variables have no linear dependence, leading to lines of regression that are perpendicular to each other.

Hence, if the correlation coefficient between two variables is zero, then the angle between the two lines of regression is π/2 (90 degrees).

Question 83

If x ≥ 1 is the critical region for testing H0 ∶ λ = 2 against the alternative HA ∶ λ = 1, on the basis of the single observation from the exponential population with rate parameter λ then the size of type-I error is equal to:

  1. AOption (a)

    e-3

  2. BOption (b)

    e-5

  3. COption (c)

    e-1

  4. DOption (d)

    e-2

View answer & explanation

Correct answer

Answer: (d)D.

e-2

Why this answer is correct

The correct answer is e-2

Key Points 

  • To determine the size of a Type-I error for a hypothesis test, we need to consider the significance level or level of significance (α). The significance level represents the probability of rejecting the null hypothesis (H0) when it is true.
  • In this case, the critical region for testing H0: λ = 2 against the alternative HA: λ = 1 is defined as x ≥ 1.
  • Since the exponential distribution is a continuous distribution, we can calculate the probability of observing a value greater than or equal to 1, given λ = 2. This probability represents the size of the Type-I error.
  • For the exponential distribution with rate parameter λ, the probability density function (pdf) is given by f(x) = λ × e(-λx)
  • To calculate the size of the Type-I error, we need to integrate the pdf from the critical region (x ≥ 1) to infinity, with λ = 2:
  • Size of Type-I error = ∫[1, ∞] λ × e(-λx) dx
  • Size of Type-I error = ∫[1, ∞] 2 × e(-2x) dx
  • By evaluating this integral, we find that the size of the Type-I error is equal to e(-2) ≈ 0.135.

Therefore, the size of the Type-I error in this hypothesis test is approximately e(-2).

Question 84

The standard deviation of the first 10 natural numbers is 3.028. What will be the standard deviation of the first 20 natural numbers? 

  1. AOption (a)

    7.525

  2. BOption (b)

    5.845

  3. COption (c)

    3.028

  4. DOption (d)

    9.325

View answer & explanation

Correct answer

Answer: (b)B.

5.845

Why this answer is correct

The correct answer is 5.845

 Key PointsThe standard deviation of the first 10 natural numbers: 

Formula: σ=(n2−1)12σ = \sqrt {{(n^2 - 1)}\over 12}; where, σ = standard deviation, n = sample size 

Or, σ = (202−1)12=5.766≈5.8\sqrt{(20^2 - 1) \over 12} = 5.766 \approx 5.8

This is closest to 5.845 

Hence, the standard deviation of the first 20 natural numbers is 5.845.

Important Points The standard deviation of a set of numbers is a measure of the amount of variance or dispersion among the numbers. It doesn't scale linearly or predictably with the number of elements in the set, or with the standard deviation of a different set of numbers. Therefore, the standard deviation of the first 20 natural numbers can't be calculated directly from the standard deviation of the first 10 natural numbers.

Question 85

A person travels to three places at equal distance at speeds of a km/h, b km/h and c km/h, respectively. The average speed for the whole trip is:  

  1. AOption (a)

    (ab + bc + ac)

  2. BOption (b)

    3abc/(ab + bc + ac)

  3. COption (c)

    abc/(ab + bc + ac)

  4. DOption (d)

    a + b + c/(ab + bc + ac)

View answer & explanation

Correct answer

Answer: (b)B.

3abc/(ab + bc + ac)

Why this answer is correct

The correct answer is 3abc/(ab + bc + ac)

Key Points

The average speed for the entire trip can be calculated as the total distance divided by the total time. 

Assuming the distance to each place is 'd', the total distance traveled would be 3d.

The time taken to travel to each place is the distance divided by the speed, so the total time is = da+db+dc\frac{d}{a} + \frac{d}{b} + \frac{d}{c}

Therefore, the average speed for the whole trip is = 3ada+db+dc{3a} \over {\frac{d}{a} + \frac{d}{b} + \frac{d}{c}}  = 31a+1b+1c{3} \over {\frac{1}{a} + \frac{1}{b} + \frac{1}{c}} = 3abcab+bc+ac{3abc} \over {ab + bc + ac}

Question 86

In the method of moving average, the second average is the mean of the:

  1. AOption (a)

    m terms from second to (m + 1)th term

  2. BOption (b)

    first m terms

  3. COption (c)

    m terms from fourth to (m + 3)th term

  4. DOption (d)

    m terms from third to (m + 2)th term

View answer & explanation

Correct answer

Answer: (a)A.

m terms from second to (m + 1)th term

Why this answer is correct

The correct answer is 

Key Points

  • In the context of time series analysis or data smoothing, the method of moving averages involves calculating a sequence of averages by taking the mean of consecutive subsets of data.
  • In this method, the second average specifically refers to the mean of a specified number of terms, starting from the second term and extending to the (m + 1)th term, where 'm' represents the window size or a number of terms used for the moving average.
  • Given a time series or sequence of data values X1, X2, X3, X4, X5, X6, X7, ..., the method of moving average involves computing a series of averages to obtain smoothed values.
  • The second average is determined by calculating the mean of a specific subset of terms, namely the terms from X2 to the (m + 1)th term, where 'm' represents the chosen window size or the number of terms for the moving average.
  • For instance, if the window size is set to 3, the second average is computed as the mean of the terms X2, X3, and X4. If the window size is 5, the second average corresponds to the mean of the terms X2, X3, X4, X5, and X6, and so on.
  • The method of moving average is commonly employed for data smoothing purposes, enabling the identification of trends and patterns within a time series by reducing the impact of short-term fluctuations.

Hence, in the method of moving average, the second average is the mean of the m terms from second to (m + 1)th term.

Question 87

For an experiment with sample space S, the events Ai, i = 1, 2, 3,.... are mutually exclusive and exhaustive if:

  1. AOption (a)

    ⋃iAi = S and Ai ∪ Aj = Φ for i ≠ j

  2. BOption (b)

    ⋃iAi = S and Ai ∩ Aj = Φ for i ≠ j

  3. COption (c)

    Ai ∩ Aj = Φ for i ≠ j

  4. DOption (d)

    ⋃iAi = S

View answer & explanation

Correct answer

Answer: (b)B.

⋃iAi = S and Ai ∩ Aj = Φ for i ≠ j

Why this answer is correct

The correct answer is ⋃iAi = S and Ai ∩ Aj = Φ for i ≠ j

Key Points 

In the context of an experiment with a sample space S, the events Ai, i = 1, 2, 3, ..., are formally defined as mutually exclusive and exhaustive if the following conditions hold: 

  • Mutual Exclusivity: For any two distinct events Ai and Aj, where i ≠ j, their intersection is an empty set: Ai ∩ Aj = Φ. In other words, no outcomes are shared between any two different events.
  • Exhaustiveness: The union of all events, denoted as ⋃iAi, is equal to the entire sample space S. This means that every possible outcome in the sample space is covered by at least one of the events Ai.
  • For an experiment with sample space S, the events Ai, i = 1, 2, 3, ..., are mutually exclusive if, for any distinct i and j (i ≠ j), the intersection of Ai and Aj is an empty set: Ai ∩ Aj = Φ.
  • Additionally, the events Ai, i = 1, 2, 3, ..., are exhaustive if the union of all events is equal to the entire sample space: ⋃iAi = S.

These conditions ensure that the events are distinct, with no overlapping outcomes, and that together they cover all possible outcomes in the sample space.

Question 88

If the pairwise correlation coefficients between three random variables X1, X2 and X3 are r12 = cos2 θ, r13 = sin θ, r23 = cos θ, then the partial correlation coefficient r123 is equal to:

  1. AOption (a)

    cos θ - 1

  2. BOption (b)

    sin θ - 1

  3. COption (c)

    tan θ - 1

  4. DOption (d)

    cot θ - 1

View answer & explanation

Correct answer

Answer: (d)D.

cot θ - 1

Why this answer is correct

The correct answer is cot θ - 1

Key Points

 To find the partial correlation coefficient r123 between three random variables X1, X2 and X3 given their pairwise correlation coefficients, we can use the formula for partial correlation in terms of pairwise correlations: 

r12.3=r12−r13r231−r132.(1−r232)\rm r_{12.3}=\frac{r_{12}-r_{13}r_{23}}{\sqrt{1-r_{13}^2.(1-r_{23}^2)}}

Given that r12 = cos2 θ, r13 = sin θ, and r23 = cos θ, we can substitute these values into the formula:

r123=cos⁡2θ−(sin⁡θ)(cos⁡θ)1−(sin⁡θ)2⋅(1−(cos⁡θ)2)\rm r_{123}=\frac{\cos^2 \theta-(\sin \theta)(\cos \theta)}{\sqrt{1-(\sin \theta)^2\cdot(1-(\cos \theta)^2)}}

Using trigonometric identity cos2θ = 1 - sin2θ, we can simplify the equation:

r12.3=cos2θ−sin⁡θcos⁡θ[1−(sin⁡θ)2]⋅[1−(cos⁡θ)2]=cos2θ−sin⁡θcos⁡θcos⁡θ⋅sin⁡θ\rm r_{12.3}=\frac{cos^2 \theta-\sin \theta\cos \theta}{\sqrt{[1-(\sin \theta)^2]\cdot[1-(\cos \theta)^2]}}=\frac{cos^2 \theta-\sin \theta\cos \theta}{{\cos \theta\cdot \sin \theta}}

Or, r12.3=cos2θcos⁡θ⋅sin⁡θ−sin⁡θcos⁡θcos⁡θ⋅sin⁡θ=cos⁡θsin⁡θ−1=cot⁡θ−1\rm r_{12.3}=\frac{cos^2 \theta}{{\cos \theta\cdot \sin \theta}} - \frac{\sin \theta\cos \theta}{{\cos \theta\cdot \sin \theta}} = \frac{\cos \theta}{\sin \theta} - 1 = \cot \theta - 1

Hence, the correct expression for the partial correlation coefficient r123 is cot θ - 1.

Question 89

If the joint distribution function of X and Y is given by 

\rm F_{XY}(X,Y)=\left{\begin{matrix}1-e^{-x}-e^{-y}+e^{-(x+y)}; x>0, y>0\\ 0, \rm elsewhere\end{matrix}\right.

then E(X), E(Y) is equal to:

  1. AOption (a)

    5, 1 respectively

  2. BOption (b)

    1, 5 respectively

  3. COption (c)

    1, 1 respectively

  4. DOption (d)

    2, 2 respectively

View answer & explanation

Correct answer

Answer: (c)C.

1, 1 respectively

Why this answer is correct

The correct option is c.

Detailed Solution:

Concept:

Expected Value

As we mentioned earlier, the theory of continuous random variables is very similar to the theory of discrete random variables. In particular, usually summations are replaced by integrals and PMFs are replaced by PDFs. The proofs and ideas are very analogous to the discrete case, so sometimes we state the results without mathematical derivations for the purpose of brevity.

Remember that the expected value of a discrete random variable can be obtained as

E[X]=Σxk∈RxxkPX(xk).\rm E[X]=\Sigma x_{k\in R_x}x_k P_X(x_k).

Now, by replacing the sum by an integral and PMF by PDF, we can write the definition of expected value of a continuous random variable as

E[X]=∫−∞∞xfX(x)dx\rm E[X]=\displaystyle\int_{-\infty}^{\infty}xfX(x) dx

The equivalent quantity for a continuous random variable, not surprisingly, involves an integral rather than a sum. The mean μX����������������

         of a continuous random variable X��������

         with probability density function fX(x)��(�)Unknown node type: span��(�)Unknown node type: span��(�)Unknown node type: span��(�)Unknown node type: span[Math Processing Error]��(�)Unknown node type: span��(�)Unknown node type: span��(�)Unknown node type: span

        X=E(X)=∫∞−∞xfX(x)dx.

The Joint cumulative function of two random variables X and Y is defined as 

 FXY=P(X<x,Y<y).F_{XY} = P(X<x, Y<y).

The joint CDF satisfies the following properties:

  • FX(y)=FXY(∞,Y)F_{X} (y) = F_{XY}(\infty, Y), for any y (marginal CDF of Y)
  • FX(x)=FXY(X,∞)F_{X} (x) = F_{XY}(X, \infty), for any x (marginal CDF of X)
  • FXY(∞,∞)=1F_{XY}(\infty, \infty) = 1
  • FXY(x,−∞)=FXY(−∞,y)=0F_{XY}(x, -\infty) = F_{XY}(-\infty, y) = 0
  • P(x1 < X < x2, y1 < Y < y2) = FXY(x2, y2) - FXY(x1, y2) - FXY(x2, y1) + FXY(x1, y1)
  • If X and Y are independent, then FXY(x, y) = FXY(x) FXY(y)

 

Calculation: 

\rm F_{XY}(x,y)=\left{\begin{matrix}1-e^{-x}-e^{-y}+e^{-(x+y)};&x>0,y>0\\ 0;&\rm otherwise\end{matrix}\right.

\rm F_{X}(X)=F(X, \infty)=\left{\begin{matrix}1-e^{-x}&x>0\\ 0;&\rm otherwise\end{matrix}\right.

\rm F_{Y}(Y)=F(\infty, Y)=\left{\begin{matrix}1-e^{-y}&y>0\\ 0;&\rm otherwise\end{matrix}\right.

\rm F_{X}(X)=\frac{\partial F_x(X)}{\partial X}=\left{\begin{matrix}e^{-x};&x>0\\ 0;&\rm otherwise\end{matrix}\right.

\rm F_{Y}(Y)=\frac{\partial F_y(Y)}{\partial Y}=\left{\begin{matrix}e^{-y};&y>0\\ 0;&\rm otherwise\end{matrix}\right.

E[X]=∫−∞∞xFx(x)dx=∫0∞xe−xdx\rm E[X]=\displaystyle \int_{-\infty}^{\infty}xF_x(x)dx=\displaystyle \int_{0}^{\infty}xe^{-x}dx

\rm E[X]=\left{\frac{xe^{-x}}{-1}-\frac{e^{-x}}{(-1)^2}\right}_0^{\infty}

E[X] = 1

E[Y]=∫−∞∞xFy(Y)dx=∫0∞ye−ydy\rm E[Y]=\displaystyle \int_{-\infty}^{\infty}xF_y(Y)dx=\displaystyle \int_{0}^{\infty}ye^{-y}dy

\rm E[X]=\left{\frac{ye^{-y}}{-1}-\frac{e^{-y}}{(-1)^2}\right}_0^{\infty}

E[Y] = 1

Question 90

The range of Pearson's coefficient of skewness is: 

  1. AOption (a)

    -1 to 1

  2. BOption (b)

    -2 to 2

  3. COption (c)

    -3 to 3

  4. DOption (d)

    0 to 1

View answer & explanation

Correct answer

Answer: (c)C.

-3 to 3

Why this answer is correct

The correct answer is (- 3 to 3). 

Key Points 

  • Pearson's coefficient of skewness, also known as the Pearson mode skewness, does have a range of -3 to +3, and it is typically used for interval or ratio scale data. Pearson's coefficient of skewness is defined as the third standardized moment of a distribution, divided by the cube of the standard deviation. It is a dimensionless measure that helps assess the asymmetry of a distribution.
  • When using Pearson's coefficient of skewness, values between -3 and +3 are considered within a reasonable range, whereas values closer to -3 or +3 indicate increasingly skewed distributions. A skewness value of 0 indicates a perfectly symmetric distribution.
  • It is important to note that Pearson's coefficient of skewness is based on certain assumptions about the underlying data, including that it follows a normal distribution or an approximately symmetric distribution. It is less suitable for distributions that are heavily skewed or have outliers.
  • Furthermore, while Pearson's coefficient of skewness is commonly used for interval or ratio scale data, it can also be used for ordinal data under certain conditions. However, caution should be exercised when interpreting skewness values for ordinal data, as the assumptions of interval or ratio scale may not hold.

Hence, the range of Pearson's coefficient of skewness is -3 to 3.

Question 91

In a two-way classified data with usual notations, the null hypothesis for blocks or varieties is: 

  1. AOption (a)

    H0 : Bj ≠ 0, j = 1, 2, ...., h

  2. BOption (b)

    H0 : Bj = 0, j = 1, 2, ...., h

  3. COption (c)

    H0 : εij = 0, i = 1, 2, ...., k, j = 1, 2, ....., h

  4. DOption (d)

    H0 : εij = 0, i ≠ 1, 2, ...., k, j = 1, 2, ....., h

View answer & explanation

Correct answer

Answer: (b)B.

H0 : Bj = 0, j = 1, 2, ...., h

Why this answer is correct

The correct answer is 

Key Points 

  • In a two-way classified data, we often analyze the effects of two categorical factors or variables, typically referred to as "rows" and "columns." The null hypothesis for the "blocks" or "varieties" (which is one of the factors) can be stated as follows:
  • H0: The mean effect of the "j-th" block or variety is equal to zero, where j takes values from 1 to h.
  • In this context, "Bj" represents the mean effect of the j-th block or variety. The null hypothesis assumes that there is no significant difference between the various blocks or varieties in terms of their effects.
  • To test this null hypothesis, statistical methods such as analysis of variance (ANOVA) or appropriate regression models can be used to examine the significance of the block or variety effects. If the null hypothesis is rejected based on the observed data and appropriate statistical tests, it implies that there are significant differences between the blocks or varieties.
  • It's important to note that the specific hypothesis formulation may vary depending on the context and research question at hand.

The notation H0: Bj = 0 is a general representation of the null hypothesis for block or variety effects in a two-way classified data analysis.

Question 92

The mean of the series 1, 2, 4, 8...., 2n is given as:

  1. AOption (a)

    2n−1−1n+1\rm \frac{2^{n-1}-1}{n+1}

  2. BOption (b)

    2n+1−1n\rm \frac{2^{n+1}-1}{n}

  3. COption (c)

    2n+1−1n+1\rm \frac{2^{n+1}-1}{n+1}

  4. DOption (d)

    2n−1n\rm \frac{2^{n-1}}{n}

View answer & explanation

Correct answer

Answer: (c)C.

2n+1−1n+1\rm \frac{2^{n+1}-1}{n+1}

Why this answer is correct

The correct answer is 2n+1−1n+1\rm \frac{2^{n+1}-1}{n+1}.

Key Points 

  • To find the mean of the series 1, 2, 4, 8, ..., 2n, we need to sum up all the terms in the series and divide by the total number of terms.
  • The given series follows a pattern where each term is obtained by multiplying the previous term by 2. So, we can express the terms in the series as 20, 21, 22, 23, ..., 2(n-1), 2n.
  • The sum of the terms can be calculated as: 20 + 21 + 22 + 23 + ... + 2(n-1) + 2n
  • This is a geometric series with a common ratio of 2. The sum of a geometric series can be calculated using the formula: Sum = a×(rn−1)(r−1)a \times (r^n - 1) \over (r - 1), where "a" is the first term, "r" is the common ratio, and "n" is the total number of terms.
  • In this case, the first term "a" is 20 = 1, the common ratio "r" is 2, and the total number of terms "n" is n+1.
  • Substituting these values into the formula, we have: Sum = 1×(2(n+1)−1(2−1)1 \times (2^{(n+1)} - 1 \over (2 - 1).

⇒ sum = =2(n+1)−11=2(n+1)−1= {2^{(n+1)} - 1 \over 1} = 2^{(n+1)} - 1

  • To find the mean, we divide the sum by the total number of terms, which is n+1: Mean = 2(n+1)−1(n+1)2^{(n+1)} - 1 \over (n + 1)

Hence, the mean of the series 1, 2, 4, 8, ..., 2n is given by the expression 2(n+1)−1(n+1)2^{(n+1)} - 1 \over (n + 1).

Question 93

Let X ~ N(μ, σ2), then the fourth central moment of X is:

  1. AOption (a)

    3 σ2

  2. BOption (b)

    2 σ3

  3. COption (c)

    3 σ4

  4. DOption (d)

    2 σ2

View answer & explanation

Correct answer

Answer: (c)C.

3 σ4

Why this answer is correct

The correct answer is 3σ4

Key Points 

  • The fourth central moment of a normal distribution (also known as kurtosis) is defined as the expectation of the fourth power of the deviations from the mean, divided by the standard deviation to the fourth power.
  • The kurtosis of a standard normal distribution (μ=0, σ=1) is 3.
  • However, if we consider a general normal distribution X ~ N(μ, σ²), the fourth central moment (μ4) is given by: μ4 = E[(X-μ)⁴]
  • Since the normal distribution is symmetric, this is equivalent to E[X⁴] - 4μE[X³] + 6μ²E[X²] - 4μ³E[X] + μ⁴. We know that for a normal distribution, E[X] = μ, E[X²] = μ² + σ², E[X³] = μ³ + 3μσ², and E[X⁴] = μ⁴ + 4μ³σ² + 6μ²σ⁴ + 3σ⁴.
  • Substituting these in, we get: μ4 = μ⁴ + 4μ³σ² + 6μ²σ⁴ + 3σ⁴ - 4μ(μ³ + 3μσ²) + 6μ²(μ² + σ²) - 4μ³μ + μ⁴ = 3σ⁴

Therefore, the fourth central moment of a normal distribution is 3σ⁴.

Question 94

If the regression coefficient bxy > 1 then byx is :

  1. AOption (a)

    None of the options

  2. BOption (b)

    = 1

  3. COption (c)

    > 1

  4. DOption (d)

    < 1

View answer & explanation

Correct answer

Answer: (d)D.

< 1

Why this answer is correct

The correct answer is < 1.

Key Points

The product of the regression coefficients of Y on X (byx) and X on Y (bxy) is equal to the ratio of variances of X and Y.

⇒ byx×bxy=σx2σy2 b_{yx} \times b_{xy} = \frac{σ_x²}{σ_y²}

Assuming that the variances σx² and σy² are positive (since variance can't be negative), then if bxy > 1, it must be the case that byx < 1.

This is because if bxy > 1, then in order for their product to be a positive number less than or equal to 1 (Since, σx2σy2\frac{σ_x²}{σ_y²} can't be greater than 1 unless the variance of X is greater than that of Y), byx must be less than 1. 

Hence, if bxy > 1, then indeed byx < 1. This property is known as the Magnitude property.

Question 95

If the probabilities of four mutually exclusive and exhaustive events P, Q, R and S satisfy the relation 

3P(P) = P(Q) = 2P(R) = 4P(S), then P(Q) is:

  1. AOption (a)

    825\frac{8}{25}

  2. BOption (b)

    1925\frac{19}{25}

  3. COption (c)

    1725\frac{17}{25}

  4. DOption (d)

    1225\frac{12}{25}

View answer & explanation

Correct answer

Answer: (d)D.

1225\frac{12}{25}

Why this answer is correct

The correct answer is 1225\frac {12}{25}.

Key Points 

If the events P, Q, R, and S are mutually exclusive and exhaustive, then their probabilities must sum to 1. That is: P(P) + P(Q) + P(R) + P(S) = 1

We are given that: 3P(P) = P(Q) = 2P(R) = 4P(S)

We can rewrite this as:

P(P) = P(Q)3\frac{P(Q)}{3}, P(R) = P(Q)2\frac{P(Q)}{2}and P(S) = P(Q)4\frac{P(Q)}{4}

Substituting these values into the equation P(P) + P(Q) + P(R) + P(S) = 1, we get:

P(Q)3+P(Q)+P(Q)2+P(Q)4=1\frac{P(Q)}{3} + P(Q) + \frac{P(Q)}{2} + \frac{P(Q)}{4} = 1

Or, (13+1+12+14)×P(Q)=1(\frac{1}{3} + 1 + \frac{1}{2} + \frac{1}{4}) \times P(Q) = 1

Or, 2512P(Q)=1\frac{25}{12} P(Q) = 1

Or, P(Q) = 1225\frac{12}{25}

Question 96

To obtain a new series of index numbers, the old index numbers are multiplied with which of the following common factor? 

  1. AOption (a)

    Index number of new base year100\rm \frac{Index\ number \ of \ new \ base \ year}{100}

  2. BOption (b)

    100Index number of new base year\rm \frac{100}{Index\ number \ of \ new \ base \ year}

  3. COption (c)

    100Index number of any year\rm \frac{100}{Index\ number \ of \ any\ year}

  4. DOption (d)

    100(Index number of new base year)2\rm \frac{100}{(Index\ number \ of \ new \ base \ year)^2}

View answer & explanation

Correct answer

Answer: (b)B.

100Index number of new base year\rm \frac{100}{Index\ number \ of \ new \ base \ year}

Why this answer is correct

The correct answer is 100Index number of new base year\rm \frac{100}{Index\ number \ of \ new \ base \ year}.

Key Points

  • Index numbers are used to measure and track changes in various economic and statistical indicators over time. They provide a way to compare the relative changes in different periods and capture the overall trend.
  • When a new series of index numbers is constructed, it is often desirable to establish a new base year for comparison. The base year serves as a reference point with a value of 100. By using a common base year, it becomes easier to analyze and compare changes across different time periods.
  • To align the old index numbers with the new base year, a common factor is applied. This factor is calculated as the reciprocal of the index number of the new base year, multiplied by 100. Mathematically, it can be expressed as: 100Index number of new base year\frac{100}{\text{Index number of new base year}}.
  • By multiplying the old index numbers by this factor, we rescale them so that they are relative to the new base year value of 100. This adjustment ensures that the old and new series are on the same scale and facilitates meaningful comparisons between them.
  • This rescaling allows for consistent analysis and interpretation of the index numbers across different time periods, enabling us to measure the relative changes and trends accurately.
  • By using the common factor, the relative proportions and relationships among the index numbers are maintained while adjusting them to the new base year. It helps ensure that the new series of index numbers accurately reflects the changes and trends in the underlying data relative to the chosen base year.

Hence, the required common factor is 100Index number of new base year\rm \frac{100}{Index\ number \ of \ new \ base \ year}

Question 97

If the correlation coefficient between x and y is 0.5 and the regression coefficient of y on x is 0.5, then the regression coefficient of x on y is: 

  1. AOption (a)

    0.05

  2. BOption (b)

    0.5

  3. COption (c)

    1

  4. DOption (d)

    0.25

View answer & explanation

Correct answer

Answer: (b)B.

0.5

Why this answer is correct

The correct answer is 0.5

Key Points Given, 

the correlation coefficient between x and y (rxy) = 0.5 

the regression coefficient of y on x (byx) = 0.5 

Then, the regression coefficient of x on y (bxy) = r2byx{r^2 \over b_{yx}} = (0.5)20.5=0.5{(0.5)^2 \over 0.5} = 0.5

Important Points

The correlation coefficient between x and y (rxy) = bxy×byx\sqrt {{b_{xy}} × {b_{yx}}}

or, rxy2 = bxy × byx

or, bxy = r2byx{r^2 \over b_{yx}}

Hence, the required value of the regression coefficient of x on y is 0.5

Question 98

If X and Y are two random variables having density function 

\rm f(x,y)=\left{\begin{matrix}\frac{(6-x-y)}{8},0<x<2,2<y<4\\ 0,\rm elsewhere\end{matrix}\right.

then P(X + Y < 3) is equal to:

  1. AOption (a)

    324\frac{3}{24}

  2. BOption (b)

    124\frac{1}{24}

  3. COption (c)

    38\frac{3}{8}

  4. DOption (d)

    58\frac{5}{8}

View answer & explanation

Correct answer

Answer: (b)B.

124\frac{1}{24}

Why this answer is correct

The correct option is b.

Detailed Solution:

Concept:

The Joint cumulative function of two random variables X and Y is defined as 

 FXY=P(X<x,Y<y).F_{XY} = P(X<x, Y<y).

The joint CDF satisfies the following properties:

  • FX(y)=FXY(∈fty,Y)F_{X} (y) = F_{XY}(∈fty, Y), for any y (marginal CDF of Y)
  • FX(x)=FXY(X,∈fty)F_{X} (x) = F_{XY}(X, ∈fty), for any x (marginal CDF of X)
  • FXY(∈fty,∈fty)=1F_{XY}(∈fty, ∈fty) = 1
  • FXY(x,−∈fty)=FXY(−∈fty,y)=0F_{XY}(x, -∈fty) = F_{XY}(-∈fty, y) = 0
  • P(x1 < X < x2, y1 < Y < y2) = FXY(x2, y2) - FXY(x1, y2) - FXY(x2, y1) + FXY(x1, y1)
  • If X and Y are independent, then FXY(x, y) = FXY(x) FXY(y)

Two random variables X and Y are jointly continuous if there exists a nonnegative function fXY : ℝ2 → ℝ, such that for any set A ∈ ℝ2, we have

P((X,Y)∈A)=∬AfXY(x,y)dxdy (5.15)\rm P((X,Y)\in A)=\displaystyle\iint_Af_{XY}(x,y)dxdy\ (5.15)

The function fXY(x, y) is called the joint probability density function (PDF) of X and Y.

Marginal PDFs

fX(x)=∫−∞∞fXY(x,y)dy, for all x\rm f_X(x)=\displaystyle\int_{-\infty}^{\infty}f_{XY}(x,y)dy, \ for \ all\ x

fY(y)=∫−∞∞fXY(x,y)dy, for all y\rm f_Y(y)=\displaystyle\int_{-\infty}^{\infty}f_{XY}(x,y)dy, \ for \ all\ y

Calculation:

 \rm f(x,y)=\left{\begin{matrix}\frac{(6-x-y)}{8},0<x<2,2<y<4\\ 0,\rm elsewhere\end{matrix}\right.

 

P(X + Y < 3) = ∈ty=2y=4∈tx=0x=3−yf(x,y),dxdy ∈t_{y=2}^{y=4}∈t_{x=0}^{x=3-y} f(x,y),dx dy

 

P(X + Y < 3) = ∈ty=2y=4∈tx=0x=3−y((6−x−y)8,)dxdy ∈t_{y=2}^{y=4}∈t_{x=0}^{x=3-y} (\frac{(6-x-y)}{8},)dx dy

P(X+Y<3)=∫y=2y=4∫x=0x=3−y(6−x−y8)dxdy\rm P(X+Y<3)=\displaystyle \int_{y=2}^{y=4}\int_{x=0}^{x=3-y}\left(\frac{6-x-y}{8}\right)dxdy

=18∫y=2y=4∫x=0x=3−y(6−x−y)dxdy=\frac{1}{8}\displaystyle \int_{y=2}^{y=4}\int_{x=0}^{x=3-y}\left({6-x-y}{}\right)dxdy

=18∫y=2y=4(6x−x22−xy)x=0x=3−ydy=\frac{1}{8}\displaystyle \int_{y=2}^{y=4}\left(6x-\frac{x^2}{2}-xy\right)_{x=0}^{x=3-y}dy

=\frac{1}{8}\displaystyle \int_{y=2}^{y=4}\left{6(3-y)-\frac{(3-y)^2}{2}-(3-y)y\right}dy

=\frac{1}{8}\displaystyle \int_{y=2}^{y=4}\left{(18-6y)-\left(\frac{9}{2}-3y+\frac{y^2}{2}\right)-(3y-y^2)\right}dy

=18∫y=2y=4(272−6y+y22)dy=\frac{1}{8}\displaystyle \int_{y=2}^{y=4}\left(\frac{27}{2}-6y+\frac{y^2}{2}\right)dy

=\frac{1}{8}\left{\frac{27}{2}y-3y^2+\frac{y^3}{6}\right}^{y=4}_{y=2}

=\frac{1}{8}\left{\frac{27}{2}(4-2)-3(16-4)+\frac{1}{6}(64-8)\right}

=\frac{1}{8}\left{27-36+\frac{28}{3}\right}

=124=\frac{1}{24}

Question 99

The data available in textbooks is: 

  1. AOption (a)

    empirical data 

  2. BOption (b)

    secondary data 

  3. COption (c)

    categorical data 

  4. DOption (d)

    primary data 

View answer & explanation

Correct answer

Answer: (b)B.

secondary data 

Why this answer is correct

The correct answer is Secondary data.

Key Points

  • In the context of research methodology, data can be categorized into two types: primary data and secondary data. Primary data refers to the original data collected by researchers specifically for their study through methods like surveys, experiments, or observations. On the other hand, secondary data refers to existing data that has been collected by someone else for a different purpose but can be used for research.
  • Textbooks generally contain secondary data, as the information presented is usually compiled from various primary sources. Authors of textbooks gather information from research studies, scholarly articles, reports, historical documents, and other reliable sources to provide a comprehensive overview of a particular subject.
  • While textbooks serve as valuable sources of information, it's important to note that the data they contain may not always be the most up-to-date. Textbooks are typically written over a period of time and may have a knowledge cutoff date. Therefore, for the most current and cutting-edge information, it is advisable to consult primary sources, research articles, or other up-to-date resources.

Additional Information

  • Empirical data:
  • Empirical data refers to information that is obtained through direct observation or experimentation. It involves the collection of data by conducting research, surveys, experiments, or observations. Empirical data is typically gathered firsthand by researchers for their specific study. Textbooks, however, usually present information that is based on previously collected data rather than directly providing empirical data.
  • Categorical data:
  • Categorical data refers to data that is organized into categories or groups. It represents qualitative variables or attributes rather than numerical values. Examples of categorical data include gender (male/female), color (red/blue/green), or type of vehicle (car/truck/motorcycle). While textbooks may contain information that involves categorical data, the textbooks themselves do not typically provide raw categorical data sets. Instead, they present the findings, trends, or conclusions derived from such data.
  • Primary data:
  • Primary data refers to original data that is collected by researchers specifically for their study. This data is gathered firsthand through research methods such as surveys, experiments, interviews, or observations. Unlike secondary data, which is already existing and collected by others, primary data is obtained directly by the researchers themselves. Textbooks do not typically provide primary data, as their purpose is to present synthesized information based on existing sources rather than original research.

To summarize, textbooks primarily contain secondary data, which is compiled from various sources, including empirical data collected by others. ​

Question 100

Which of the following is NOT a method for collecting primary data? 

  1. AOption (a)

    Conducting experiments 

  2. BOption (b)

    Getting questionnaires filled 

  3. COption (c)

    Taking information from website of a company 

  4. DOption (d)

    Personal Interviews 

View answer & explanation

Correct answer

Answer: (c)C.

Taking information from website of a company 

Why this answer is correct

The correct answer is Taking information from the website of a company. 

Key Points 

  • The method for collecting primary data that is not listed among the options is taking information from the website of a company:
  • Taking information from the website of a company would generally fall under the category of collecting secondary data. The website of a company would typically provide information that has already been collected and published by the company for its own purposes. While this information can be valuable for research purposes, it is not considered primary data because it is not collected directly by the researcher for their specific study.
  • The other options listed are valid methods for collecting primary data:
  • Conducting experiments: Researchers can design and conduct experiments to collect primary data by manipulating variables and measuring the resulting outcomes.
  • Getting questionnaires filled: Questionnaires are a common method for collecting primary data. Researchers create questionnaires to gather specific information from individuals or groups, and the respondents' answers provide the primary data.
  • Personal interviews: Conducting personal interviews is another method for collecting primary data. Researchers directly interact with individuals or groups and ask questions to gather information relevant to their study.

In conclusion, primary data is collected firsthand by researchers for their specific study, while secondary data is pre-existing data collected by others, and textbooks generally contain secondary data compiled from various sources.

100 questions in the full paper