Business Statistics MCQs

1. If Y = aX ± b, where a and b are any two constants and a ∦ 0, then the quartile
deviation of Y values is equal to:

A. a Q.D(X) + b
B. ∣a∣ Q.D(X)
C. Q.D(X) - b
D. ∣b∣ Q.D(X)

View answer
Correct answer: (B)
∣a∣ Q.D(X)

2. For a symmetrical distribution:

A. β1 > 0
B. β1 < 0
C. β1 = 0
D. β1= 3

View answer
Correct answer: (C)
β1 = 0

3. The scatter in a series of values about the average is called:

A. Central tendency
B. Dispersion
C. Skewness
D. Symmetry

View answer
Correct answer: (B)
Dispersion

4. The measures of dispersion can never be:

A. Positive
 B. Zero
C. Negative
D. Equal to 2

View answer
Correct answer: (C)
Negative

5. Which of the following is an absolute measure of dispersion?

A. Coefficient of variation
B. Coefficient of dispersion
C. Standard deviation
D. Coefficient of skewness

View answer
Correct answer: (C)
Standard deviation

6. If the observations of a variable X are, -4, -20, -30, -44 and -36, then the value of the
range will be:

A. -48
B. 40
C. -40
D. 48

View answer
Correct answer: (B)
40

7. If the maximum value in a series is 25 and its range is 15, the maximum value of the
series is:

A. 10
B. 15
C. 25
D. 35

View answer
Correct answer: (A)
10
8. Mean deviation computed from a set of data is always:

A. Negative
B. Equal to standard deviation
C. More than standard deviation
D. Less than standard deviation

View answer
Correct answer: (D)
Less than standard deviation

9. Which measure of dispersion has a different unit other than the unit of measurement
of values:

A. Range
B. Standard deviation
C. Variance
D. Mean deviation

View answer
Correct answer: (C)
Variance

10. The positive square root of the mean of the squares of the cleviations of
observations from their mean is called:

A. Variance
B. Range
C. Standard deviation
D. Coefficient of variation

View answer
Correct answer: (C)
Standard deviation

11. S.D(X) = 6 and S.D(Y) = 8. If X and Yare independent random variables, then S.D(X-Y)
is:

A. 2
B. 10
C. 14
D. 100
View answer
Correct answer: (B)
10

12. The ratio of the standard deviation to the arithmetic mean expressed as a

percentage is called:

A. Coefficient of standard deviation

B. Coefficient of skewness
C. Coefficient of kurtosis
D. Coefficient of variation

View answer
Correct answer: (D)
Coefficient of variation

13. To compare the variation of two or more than two series, we use

A. Combined standard deviation

B. Corrected standard deviation
C. Coefficient of variation
D. Coefficient of skewness

View answer
Correct answer: (C)
Coefficient of variation

14. If standard deviation of the values 2, 4, 6, 8 is 2.236, then standard deviation of the
values 4, 8,12, 16 is:

A. 0
B. 4.472
C. 4.236
D. 2.236

View answer
Correct answer: (B)
4.472

15. The moments about mean are called:

A. Raw moments
 B. Central moments
C. Moments about origin
D. All of the above

View answer
Correct answer: (B)
Central moments

16. Moment ratios β1 and β2 are:

A. Independent of origin and scale of measurement

B. Expressed in original unit of the data
C. Unit less quantities
D. Both (a) and (c)

View answer
Correct answer: (C)
Unit less quantities

17. If the third moment about mean is zero, then the distribution is:

A. Positively skewed
B. Negatively skewed
C. Symmetrical
D. Mesokurtic

View answer
Correct answer: (C)
Symmetrical

18. If mean=25, median=30 and standard deviation=15, the distribution will be:

A. Symmetrical
B. Positively skewed
C. Negatively skewed
D. Normal

View answer
Correct answer: (C)
Negatively skewed

19. In a symmetrical distribution, Q3 – Q1 = 20, median = 15. Q3 is equal to:
 A. 5
B. 15
C. 20
D. 25

View answer
Correct answer: (D)
25

20. The degree of peaked ness or flatness of a unimodel distribution is called:

A. Skewness
B. Symmetry
C. Dispersion
D. Kurtosis

View answer
Correct answer: (D)
Kurtosis

21. In a mesokurtic or normal distribution, 4 = 243. The standard deviation is:

A. 81
B. 27
C. 9
D. 3

View answer
Correct answer: (D)
3

22. The measurements of spread or scatter of the individual values around the central
point is called:

A. Measures of dispersion
B. Measures of central tendency
C. Measures of skewness
D. Measures of kurtosis

View answer
Correct answer: (A)
Measures of dispersion
23. If all the scores on examination cluster around the mean, the dispersion is said to be:

A. Small
B. Large
C. Normal
D. Symmetrical

View answer
Correct answer: (A)
Small

24. The range of the scores 29, 3, 143, 27, 99 is:

A. 140
B. 143
C. 146
D. 70

View answer
Correct answer: (A)
140

25. The sum of absolute deviations is minimum if these deviations are taken from the:

A. Mean
B. Mode
C. Median
D. Upper quartile

View answer
Correct answer: (C)
Median

26. Which of the following measures of dispersion is expressed in the same units as the
units of observation?

A. Variance
B. Standard deviation
C. Coefficient of variation
D. Coefficient of standard deviation

View answer
Correct answer: (B)
Standard deviation

27. The standard deviation is independent of:

A. Change of origin
B. Change of scale of measurement
C. Change of origin and scale of measurement
D. Difficult to tell

View answer
Correct answer: (A)
Change of origin

28. Which of the following statements is correct?

A. The standard deviation of a constant is equal to unity

B. The sum of absolute deviations is minimum if these deviations are taken from the
mean.
C. The second moment about origin equals variance
D. The variance is positive quantity and is expressed in square of the units of the
observations

View answer
Correct answer: (D)
The variance is positive quantity and is expressed in square of the units of the
observations

29. In a set of observations the variance is 50. All the observations are increased by
100%. The variance of the increased observations will become:

A. 50
B. 200
C. 100
D. No change

View answer
Correct answer: (B)
200

30. All odd order moments about mean in a symmetrical distribution are:

 A. Positive
B. Negative
C. Zero
D. Three

View answer
Correct answer: (C)
Zero

31. The first three moments of a distribution about the mean X are 1, 4 and 0. The
distribution is:

A. Symmetrical
B. Skewed to the left
C. Skewed to the right
D. Normal

View answer
Correct answer: (A)
Symmetrical

32. For a positively skewed distribution, mean is always:

A. Less than the median

B. Less than the mode
C. Greater than the mode
D. Difficult to tell

View answer
Correct answer: (C)
Greater than the mode

33. Bowley's coefficient of skewness lies between:

A. 0 and 1
B. 1 and +1
C. -1 and 0
D. -2 and +2

View answer
Correct answer: (B)
1 and +1
34. The second and fourth moments about mean are 4 and 48 respectively, then the
distribution is:

A. Leptokurtic
B. Platykurtic
C. Mesokurtic or normal
D. Positively skewed

View answer
Correct answer: (C)
Mesokurtic or normal

35. The measures used to calculate the variation present among the observations in the
unit of the variable is called:

A. Relative measures of dispersion

B. Coefficient of skewness
C. Absolute measures of dispersion
D. Coefficient of variation

View answer
Correct answer: (C)
Absolute measures of dispersion

36. The measure of dispersion which uses only two observations is called:

A. Mean
B. Median
C. Range
D. Coefficient of variation

View answer
Correct answer: (C)
Range

37. Half of the difference between upper and lower quartiles is called:

A. Interquartile range
B. Quartile deviation
C. Mean deviation
D. Standard deviation
View answer
Correct answer: (B)
Quartile deviation

38. The mean deviation of the scores 12, 15, 18 is:

A. 6
B. 0
C. 3
D. 2

View answer
Correct answer: (D)
2

39. The variance is zero only if all observations are the:

A. Different
B. Square
C. Square root
D. Same

View answer
Correct answer: (D)
Same

40. The standard deviation of -5, -5, -5, -5, 5 is:

A. -5
B. +5
C. 0
D. -25

View answer
Correct answer: (C)
0

41. The measures used to calculate the variation present among the observations
relative to their average is called:

A. Coefficient of kurtosis
B. Absolute measures of dispersion
 C. Quartile deviation
D. Relative measures of dispersion

View answer
Correct answer: (D)
Relative measures of dispersion

42. If there are many extreme scores on all examination, the dispersion is:

A. Large
B. Small
C. Normal
D. Symmetric

View answer
Correct answer: (A)
Large

43. In quality control of manufactured items, the most common measure of dispersion
is:

A. Range
B. Average deviation
C. Standard deviation
D. Quartile deviation

View answer
Correct answer: (A)
Range

44. If Y = aX ± b, where a and b are any two numbers and a ∦ 0, then the range of Y
values will be:

A. Range(X)
B. a range(X) + b
C. a range(X) - b
D. ∣a∣ range(X)

View answer
Correct answer: (D)
∣a∣ range(X)
45. Which measure of dispersion can be computed in case of open-end classes?

A. Standard deviation
B. Range
C. Quartile deviation
D. Coefficient of variation

View answer
Correct answer: (C)
Quartile deviation

46. If Y = aX ± b, where a and b are any two numbers but a ∦ 0, then M.D(Y) is equal to:

A. M.D(X)
B. M.D(X) ± b
C. ∣a∣ M.D(X)
D. M.D(Y) + M.D(X)

View answer
Correct answer: (C)
∣a∣ M.D(X)

47. If the dispersion is small, the standard deviation is:

A. Large
B. Zero
C. Small
D. Negative

View answer
Correct answer: (C)
Small

48. The standard deviation one distribution dividedly the mean of the distribution and
expressing in percentage is called:

A. Coefficient of Standard deviation

B. Coefficient of skewness
C. Coefficient of quartile deviation
D. Coefficient of variation

View answer
Correct answer: (D)
Coefficient of variation

49. If Y = aX + b, where a and b are any two numbers but a ∦ 0, then S.D(Y) is equal to:

A. S.D(X)
B. a S.D(X)
C. ∣a∣ S.D(X)
D. a S.D(X) + b

View answer
Correct answer: (C)
∣a∣ S.D(X)

50. Standard deviation is always calculated from:

A. Mean
B. Median
C. Mode
D. Lower quartile

View answer
Correct answer: (A)
Mean

51. The variance of 19, 21, 23, 25 and 27 is 8. The variance of 14, 16, 18, 20 and 22 is:

A. Greater than 8
B. 8
C. Less than 8
D. 8-5=3

View answer
Correct answer: (B)
8

52. Var(X) = 4 and Var(Y) =9. If X and Y are independent random variable then Var(2X +
Y) is:

A. 13
B. 17
C. 25
 D. -1

View answer
Correct answer: (C)
25

53. The moments about origin are called:

A. Moments about zero

B. Raw moments
C. Both (a) and (b)
D. (d)Neither (a) nor (b)

View answer
Correct answer: (C)
Both (a) and (b)

54. The first moment about X = 0 of a distribution is 12.08. The mean is:

A. 10.80
B. 10.08
C. 12.08
D. 12.88

View answer
Correct answer: (C)
12.08

55. In a symmetrical distribution, the coefficient of skewness will be:

A. 0
B. Q1
C. Q3
D. 1

View answer
Correct answer: (A)
0

56. If mean=20, median=16 and standard deviation=2, then coefficient of skewness is:

A. 1
 B. 2
C. 4
D. -2

View answer
Correct answer: (B)
2

57. If the sum of deviations from median is not zero, then a distribution will be:

A. Symmetrical
B. Skewed
C. Normal
D. All of the above

View answer
Correct answer: (B)
Skewed

58. The lower and upper quartiles of a distribution are 80 and 120 respectively, while
median is 100. The shape of the distribution is:

A. Positively skewed
B. Negatively skewed
C. Symmetrical
D. Normal

View answer
Correct answer: (C)
Symmetrical

59. The value of β2 can be:

A. Less than 3
B. Greater than 3
C. Equal to 3
D. All of the above

View answer
Correct answer: (D)
All of the above
60. The degree to which numerical data tend to spread about an average value called:

A. Constant
B. Flatness
C. Variation
D. Skewness

View answer
Correct answer: (C)
Variation

61. Given below the four sets of observations. Which set has the minimum variation?

A. 46, 48, 50, 52, 54

B. 30, 40, 50, 60, 70
C. 40, 50, 60, 70, 80
D. 48, 49, 50, 51, 52

View answer
Correct answer: (D)
48, 49, 50, 51, 52

62. The range of the values -5, -8, -10, 0, 6, 10 is:

A. 0
B. 10
C. -10
D. 20

View answer
Correct answer: (D)
20

63. The mean deviation is minimum when deviations are taken from:

A. Mean
B. Mode
C. Median
D. Zero

View answer
Correct answer: (C)
Median

664. The sum of squares of the deviations is minimum, when deviations are taken from:

A. Mean
B. Mode
C. Median
D. Zero

View answer
Correct answer: (A)
Mean

65. The value of standard deviation changes by a change of:

A. Origin
B. Scale
C. Algebraic signs
D. None

View answer
Correct answer: (B)
Scale

66. For two independent variables X and Y if S.D(X) = 1 and S.D(Y) = 3, then Var(3X - Y)
is equal to:

A. 0
B. 6
C. 18
D. 12

View answer
Correct answer: (C)
18

67. Which of the following statements is false?

A. The standard deviation is independent of change of origin

B. If the moment coefficient of kurtosis β 2 = 3, the distribution is mesokurtic or
normal.
 C. If the frequency curve has the same shape on both sides of the centre line which
divides the curve into two equal parts, is called a symmetrical distribution.
D. Variance of the sum or difference of any two variables is equal to the sum of their
respective variances

View answer
Correct answer: (D)
Variance of the sum or difference of any two variables is equal to the sum of their
respective variances

68. The mean of an examination is 69, the median is 68, the mode is 67, and the
standard deviation is 3. The measures of variation for this examination is:

A. 67
B. 68
C. 69
D. 3

View answer
Correct answer: (D)
3

69. If X̄ = Rs.20, S= Rs.10, then coefficient of variation is:

A. 45%
B. 50%
C. 60%
D. 65%

View answer
Correct answer: (B)
50%

70. The second moment about arithmetic mean is 16, the standard deviation will be:

A. 16
B. 4
C. 2
D. 0

View answer
Correct answer: (B)
4

71. First two moments about the value 2 of a variable are 1 and 16. The variance will be:

A. 13
B. 15
C. 16
D. Difficult to tell

View answer
Correct answer: (B)
15

72. Departure from symmetry is called:

A. Second moment
B. Kurtosis
C. Skewness
D. Variation

View answer
Correct answer: (C)
Skewness

73. If mean=50, mode=40 and standard deviation=5, the distribution is:

A. Positively skewed
B. Negatively skewed
C. Symmetrical
D. Difficult to tell

View answer
Correct answer: (A)
Positively skewed

74. In case of positively skewed distribution, the extreme values lie in the:

A. Middle
B. Left tail
C. Right tail
D. Anywhere
View answer
Correct answer: (C)
Right tail

75. Which of the following is correct in a negatively skewed distribution?

A. The arithmetic mean is greater than the mode

B. The arithmetic mean is greater than the median
C. (Q3 - Median) = (Median - Q1)
D. (Q3 - Median) < (Median - Q1)

View answer
Correct answer: (D)
(Q3- Median) < (Median - Q1)

76. The measure of dispersion which uses only two observations is called:

1. Range
2. Quartile deviation
3. Mean deviation
4. Standard deviation

View answer
Correct answer: (A)
Range

77. If Q3=20 and Q1=10, the coefficient of quartile deviation is:

A. 3
B. 1/3
C. 2/3
D. 1

View answer
Correct answer: (B)
1/3

78. The average of squared deviations from mean is called:

A. Mean deviation
B. Variance
C. Standard deviation
 D. Coefficient of variation

View answer
Correct answer: (B)
Variance

79. Which of the following is a unit free quantity:

A. Range
B. Standard deviation
C. Coefficient of variation
D. Arithmetic mean

View answer
Correct answer: (C)
Coefficient of variation

80. Three factories A, B, C have 100, 200 and 300 workers respectively. The mean of the
wages is the same in the three factories. Which of the following statements is true?

A. There is greater variation in factory C.

B. Standard deviation in. factory A is the smallest.
C. Standard deviation in all the three factories are equal
D. None of the above

View answer
Correct answer: (D)
None of the above

81. Which of the following measures of dispersion is independent of the units

employed?

A. Coefficient of variation
B. Quartile deviation
C. Standard deviation
D. Range

View answer
Correct answer: (A)
Coefficient of variation
82. The first and second moments about arbitrary constant are -2 and 13 respectively,
The standard deviation will be:

A. -2
B. 3
C. 9
D. 13

View answer
Correct answer: (B)
3

83. If the third central is negative, the distribution will be:

A. Symmetrical
B. Positively skewed
C. Negatively skewed
D. Normal

View answer
Correct answer: (C)
Negatively skewed

84. The lack of uniformity or symmetry is called:

A. Skewness
B. Dispersion
C. Kurtosis
D. Standard deviation

View answer
Correct answer: (A)
Skewness

85. If mean=10, median=8 and standard deviation=6, then coefficient of skewness is:

A. 1
B. -1
C. 2/6
D. 2

View answer
Correct answer: (A)
1

86. In a symmetrical distribution Q1 = 20 and median= 30. The value of Q3 is:

A. 50
B. 35
C. 40
D. 25

View answer
Correct answer: (C)
40

87. If there are ten values each equal to 10, then standard deviation of these values is:

A. 100
B. 20
C. 10
D. 0

View answer
Correct answer: (D)
0