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Business Statistics MCQs
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)
A. β1 > 0
B. β1 < 0
C. β1 = 0
D. β1= 3
View answer
Correct answer: (C)
β1 = 0
A. Central tendency
B. Dispersion
C. Skewness
D. Symmetry
View answer
Correct answer: (B)
Dispersion
A. Positive
B. Zero
C. Negative
D. Equal to 2
View answer
Correct answer: (C)
Negative
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
View answer
Correct answer: (D)
Coefficient of variation
13. To compare the variation of two or more than two series, we use
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
A. Raw moments
B. Central moments
C. Moments about origin
D. All of the above
View answer
Correct answer: (B)
Central moments
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
A. Skewness
B. Symmetry
C. Dispersion
D. Kurtosis
View answer
Correct answer: (D)
Kurtosis
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
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
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
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
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
View answer
Correct answer: (C)
Greater than the mode
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:
View answer
Correct answer: (C)
Absolute measures of dispersion
A. Mean
B. Median
C. Range
D. Coefficient of variation
View answer
Correct answer: (C)
Range
A. Interquartile range
B. Quartile deviation
C. Mean deviation
D. Standard deviation
View answer
Correct answer: (B)
Quartile deviation
A. 6
B. 0
C. 3
D. 2
View answer
Correct answer: (D)
2
A. Different
B. Square
C. Square root
D. Same
View answer
Correct answer: (D)
Same
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)
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:
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)
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
View answer
Correct answer: (C)
Both (a) and (b)
A. 10.80
B. 10.08
C. 12.08
D. 12.88
View answer
Correct answer: (C)
12.08
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
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?
View answer
Correct answer: (D)
48, 49, 50, 51, 52
A. 0
B. 10
C. -10
D. 20
View answer
Correct answer: (D)
20
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
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
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
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
A. Second moment
B. Kurtosis
C. Skewness
D. Variation
View answer
Correct answer: (C)
Skewness
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
View answer
Correct answer: (D)
(Q3- Median) < (Median - Q1)
1. Range
2. Quartile deviation
3. Mean deviation
4. Standard deviation
View answer
Correct answer: (A)
Range
A. 3
B. 1/3
C. 2/3
D. 1
View answer
Correct answer: (B)
1/3
A. Mean deviation
B. Variance
C. Standard deviation
D. Coefficient of variation
View answer
Correct answer: (B)
Variance
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?
View answer
Correct answer: (D)
None of the above
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
A. Symmetrical
B. Positively skewed
C. Negatively skewed
D. Normal
View answer
Correct answer: (C)
Negatively skewed
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