Quantitative Methods for Economic Analysis 1 Solved MCQs

1.	The following integers were obtained as the number of visits to a gift shop, per hour, over several days. the mean of the above data, to 2 decimal places.
A.	2.80
B.	3.00
C.	2.81
D.	2.8
Answer» C. 2.81

discuss

2.	You are conducting a survey of the people of India to find out how popular football is among the Indians. You randomly choose people to call, and make 1,000 phone calls to people scattered across the country. In this study, what of the following statement is true
A.	both the people of india and the people you called is the population
B.	the people of india is called the population, and the people you called are the sample.
C.	the people of india is the sample, and the people you called is the population.
D.	both the people of india and the people you called are samples.
Answer» B. the people of india is called the population, and the people you called are the sample.

discuss

3.	A _____ refers to the group in your study whereas a ______ refers to a distinct group of people
A.	population; sample
B.	sample; population
C.	sample; cohort
D.	participant; population
Answer» B. sample; population

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4.	Under what circumstances should we be cautious about using the mean as a measure of central tendency?
A.	when the data is skewed.
B.	when data is positively skewed
C.	when data is negatively skewed
D.	all of the above
Answer» D. all of the above

discuss

5.	If b = 0 the line of best fit will conventionally be drawn ______
A.	as horizontal
B.	as vertical
C.	as provides the best fit to the scores
D.	through the middle of the data points
Answer» A. as horizontal

discuss

6.	Linear regression can achieve which of the following
A.	allow us to predict someone’s statistical grade from their mathematical ability
B.	allow us to identify how much variable y will change if variable x changes
C.	allow us to predict that as the weather gets 30% colder, then the sales of sweaters will increase by 50%.
D.	all of the above
Answer» A. allow us to predict someone’s statistical grade from their mathematical ability

discuss

7.	Linear regression means that every time the value of x increases, y changes by a ______amount.
A.	increasing
B.	decreasing
C.	constant
D.	all of the above
Answer» C. constant

discuss

8.	In regression, the variable being predicted is called the
A.	criterion or y variable
B.	predictor variable or x
C.	x
D.	explanatory variable
Answer» A. criterion or y variable

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9.	Which of the following is incorrect
A.	in linear regression a real line is drawn through the data points where total error is minimized.
B.	in linear regression the line tells us by how much y is predicted to change as a result of a change in x.
C.	in linear regression the line fits the data in the best place possible.
D.	in linear regression the line of best fit maximises the distance between the scores and the regression line.
Answer» D. in linear regression the line of best fit maximises the distance between the scores and the regression line.

discuss

10.	A correlation coefficient of +0.40 could be considered
A.	weak
B.	moderate
C.	strong
D.	zero
Answer» B. moderate

discuss

11.	The _________coefficient (r) is a ratio between the covariance (variance shared by two variables) and a measure of the separate variances.
A.	regression
B.	elasticity
C.	correlation
D.	mean
Answer» C. correlation

discuss

12.	In correlation, for a positive relationship ____ scores on one variable tend to be associated with ____ scores on the other variable
A.	high; low
B.	low; high
C.	high; high
D.	none of the above
Answer» C. high; high

discuss

13.	To construct a ________we take each person’s score on x and y and plot where they meet. Each data point represents two scores.
A.	scatter diagram
B.	histogram
C.	pie diagram
D.	ogive
Answer» A. scatter diagram

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14.	When two variables are correlated we can say
A.	that they have a perfect positive relationship
B.	that they share variance
C.	high scores are frequent on x and y
D.	that they are independent
Answer» B. that they share variance

discuss

15.	Which of the following could be value of correlation coefficient
A.	0.30
B.	+1.00
C.	−0.27
D.	all of the above
Answer» D. all of the above

discuss

16.	In correlation, which of the following tells us that we have a perfect positive relationship
A.	r = +1
B.	all the points on the scatter diagram would fall on a straight line and the slope would be from bottom left to top right of the plot
C.	the dots on the scatter diagram would fall in a straight line from top left-hand corner down to bottom right hand corner
D.	both a and b
Answer» D. both a and b

discuss

17.	You have a correlation coefficient of 0.45 between two variables. How much variance would these two variables (to the nearest whole number) share, in percentage terms
A.	16%
B.	67%
C.	25%
D.	20%
Answer» D. 20%

discuss

18.	A teacher surveys the students attending a seminar and finds that 20% are I BA students and 45% are II BA students. This is an example of
A.	descriptive statistics
B.	inferential statistics
C.	secondary data
D.	nominal data
Answer» A. descriptive statistics

discuss

19.	Which of the following does not represent one method to obtain primary source data
A.	making observations
B.	sending a survey to customers
C.	looking in journals
D.	conducting an experiment
Answer» C. looking in journals

discuss

20.	The grades that a random sample of BA students received over the last five years in Quantitative Techniques examinations represent what statistical concept
A.	the grades are a parameter
B.	the grades are a statistic
C.	the grades are a sample
D.	the grades are a population
Answer» C. the grades are a sample

discuss

21.	What method is used to sample a population so that it is representative of the population
A.	samples are chosen at random from the population
B.	every other element in a population is chosen
C.	all but the observations that have the lowest and highest values are selected
D.	only the first half of a population is selected
Answer» A. samples are chosen at random from the population

discuss

22.	An insurance agent earns a commission on each policy sold. This person made Rs.3,000 in commissions during one month and concludes that annual compensation will be Rs. 36,000. This is an example of:
A.	descriptive statistics
B.	inferential statistics
C.	secondary data
D.	nominal data
Answer» B. inferential statistics

discuss

23.	A student evaluation of teaching effectiveness for a particular course asks students to respond to their level of agreement with several statements according to the scale 1 = Strongly Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, and 5 = Strongly Disagree. The responses indicate what level of measurement?
A.	ordinal
B.	ratio
C.	nominal
D.	interval
Answer» A. ordinal

discuss

24.	A company publishes data on its quarterly earnings for its stockholders to evaluate. Which of the following is true
A.	the source is primary for both the company and the stockholders
B.	the source is secondary for both the company and the stockholders
C.	the source is primary for the company and secondary for the stockholders
D.	the source is secondary for the company and primary for the stockholders
Answer» C. the source is primary for the company and secondary for the stockholders

discuss

25.	If you have a digital weighing machine in your college that only reads in integers, is your weight a discrete variable
A.	yes, because the scale reports integers
B.	no, because weight is still a continuous variable regardless of the ability to measure it
C.	it depends on the accuracy of the scale
D.	it depends on your weight
Answer» B. no, because weight is still a continuous variable regardless of the ability to measure it

discuss

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Quantitative Methods for Economic Analysis 1 Solved MCQs

The following integers were obtained as the number of visits to a gift shop, per hour, over several days. the mean of the above data, to 2 decimal places.

You are conducting a survey of the people of India to find out how popular football is among the Indians. You randomly choose people to call, and make 1,000 phone calls to people scattered across the country. In this study, what of the following statement is true

A _ refers to the group in your study whereas a __ refers to a distinct group of people

Under what circumstances should we be cautious about using the mean as a measure of central tendency?

If b = 0 the line of best fit will conventionally be drawn ______

Linear regression can achieve which of the following

Linear regression means that every time the value of x increases, y changes by a ______amount.

In regression, the variable being predicted is called the

Which of the following is incorrect

A correlation coefficient of +0.40 could be considered

The _________coefficient (r) is a ratio between the covariance (variance shared by two variables) and a measure of the separate variances.

In correlation, for a positive relationship scores on one variable tend to be associated with scores on the other variable

To construct a ________we take each person’s score on x and y and plot where they meet. Each data point represents two scores.

When two variables are correlated we can say

Which of the following could be value of correlation coefficient

In correlation, which of the following tells us that we have a perfect positive relationship

You have a correlation coefficient of 0.45 between two variables. How much variance would these two variables (to the nearest whole number) share, in percentage terms

A teacher surveys the students attending a seminar and finds that 20% are I BA students and 45% are II BA students. This is an example of

Which of the following does not represent one method to obtain primary source data

The grades that a random sample of BA students received over the last five years in Quantitative Techniques examinations represent what statistical concept

What method is used to sample a population so that it is representative of the population

An insurance agent earns a commission on each policy sold. This person made Rs.3,000 in commissions during one month and concludes that annual compensation will be Rs. 36,000. This is an example of:

A company publishes data on its quarterly earnings for its stockholders to evaluate. Which of the following is true

If you have a digital weighing machine in your college that only reads in integers, is your weight a discrete variable

Help us improve!

Quantitative Methods for Economic Analysis 1 Solved MCQs

The following integers were obtained as the number of visits to a gift shop, per hour, over several days. the mean of the above data, to 2 decimal places.

You are conducting a survey of the people of India to find out how popular football is among the Indians. You randomly choose people to call, and make 1,000 phone calls to people scattered across the country. In this study, what of the following statement is true

A _____ refers to the group in your study whereas a ______ refers to a distinct group of people

Under what circumstances should we be cautious about using the mean as a measure of central tendency?

If b = 0 the line of best fit will conventionally be drawn ______

Linear regression can achieve which of the following

Linear regression means that every time the value of x increases, y changes by a ______amount.

In regression, the variable being predicted is called the

Which of the following is incorrect

A correlation coefficient of +0.40 could be considered

The _________coefficient (r) is a ratio between the covariance (variance shared by two variables) and a measure of the separate variances.

In correlation, for a positive relationship ____ scores on one variable tend to be associated with ____ scores on the other variable

To construct a ________we take each person’s score on x and y and plot where they meet. Each data point represents two scores.

When two variables are correlated we can say

Which of the following could be value of correlation coefficient

In correlation, which of the following tells us that we have a perfect positive relationship

You have a correlation coefficient of 0.45 between two variables. How much variance would these two variables (to the nearest whole number) share, in percentage terms

A teacher surveys the students attending a seminar and finds that 20% are I BA students and 45% are II BA students. This is an example of

Which of the following does not represent one method to obtain primary source data

The grades that a random sample of BA students received over the last five years in Quantitative Techniques examinations represent what statistical concept

What method is used to sample a population so that it is representative of the population

An insurance agent earns a commission on each policy sold. This person made Rs.3,000 in commissions during one month and concludes that annual compensation will be Rs. 36,000. This is an example of:

A company publishes data on its quarterly earnings for its stockholders to evaluate. Which of the following is true

If you have a digital weighing machine in your college that only reads in integers, is your weight a discrete variable

Help us improve!

A _ refers to the group in your study whereas a __ refers to a distinct group of people

In correlation, for a positive relationship scores on one variable tend to be associated with scores on the other variable