# 220+ Business Statistics Solved MCQs

Chapters

77
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Chapter: Unit 1
1.

A. Maximum
B. Least
C. Zero
D. None of these
2.

A. Mean
B. Median
C. Mode
D. None of these
3.

A. Mean
B. Median
C. Mode
D. None of these
4.

## What is the median of 33, 86, 68, 32, 80, 48, 70?

A. 32
B. 68
C. 80
D. 86
Explanation: To find the median of a set of numbers, you first need to order the numbers in ascending or descending order.

{32, 33, 48, 68, 70, 80, 86}

The median is the middle value when a data set has an odd number of observations.

The middle value of 7 numbers is the 4th one, which is 68.

So, the median of this set is 68.
5.

A. 20
B. 19
C. 21
D. None of these
6.

## In a moderately skewed distribution, the following equation indicates the relationship among mean, median and mode:

A. Mean = 2 Mode - 3 Median
B. Mode = 3 Median – 2 Mean
C. Median = 3 Mean – 2 Mode
D. None of these
Answer» B. Mode = 3 Median – 2 Mean
7.

A. 20
B. 30
C. 40
D. 50
8.

A. Quartiles
B. Deciles
C. Percentiles
D. None of these
9.

A. Mean
B. Median
C. Mode
D. None of these
10.

A. Mean
B. Median
C. Mode
D. None of these
11.

A. 5
B. 27
C. 9
D. 3
12.

A. 75
B. 70
C. 85
D. 80
13.

A. 120
B. 150
C. 180
D. 300
14.

A. 150
B. 160
C. 170
D. 180
15.

A. 43
B. 43.6
C. 45
D. 50
16.

A. 38
B. 20
C. 18
D. 15
17.

A. 35
B. 34.3
C. 36
D. 37
18.

A. 27
B. 26
C. 25
D. 28
19.

A. 50 and 100
B. 100 and 50
C. 150 and 200
D. 200 and 150
20.

A. 17
B. 16
C. 15
D. 20
21.

A. 8
B. 32
C. 240
D. 1.667
22.

## The method used to compute average or central value of the collected data is considered as

A. measures of positive variation
B. measures of central tendency
C. measures of negative skewness
D. measures of negative variation
Answer» B. measures of central tendency
23.

## The mean or average used to measure central tendency is called

A. sample mean
B. arithmetic mean
C. negative mean
D. population mean
24.

## If the mean of percentages, rates and ratios is to be calculated then the central tendency measure which must be used in this situation is

A. weighted arithmetic mean
B. paired arithmetic mean
C. non-paired arithmetic mean
D. square of arithmetic mean
25.

## In the quartiles, the central tendency median to be measured must lie in

A. first quartile
B. second quartile
C. third quartile
D. four quartile
26.

## A numerical value used as a summary measure for a sample, such as sample mean, is known as a

A. population parameter
B. sample parameter
C. sample statistic
D. population mean
27.

## The mean of a sample is

A. always equal to the mean of the population
B. always smaller than the mean of the population
C. computed by summing the data values and dividing the sum by (n - 1)
D. computed by summing all the data values and dividing the sum by the number of items
Answer» D. computed by summing all the data values and dividing the sum by the number of items
28.

## In a five number summary, which of the following is not used for data summarization?

A. the smallest value
B. the largest value
C. the median
D. the 25th percentile
29.

## Since the mode is the most frequently occurring data value, it

A. can never be larger than the mean
B. is always larger than the median
C. is always larger than the mean
D. None of the above
Answer» C. is always larger than the mean
30.

A. 85
B. 95
C. 90
D. 81
31.

## Branches of statistics includes

A. applied statistics
B. mathematical statistics
C. industry statistics
D. both a and b
Answer» D. both a and b
32.

A. 54
B. 53
C. 55
D. 51
33.

A. x + 8
B. x + 18
C. x – 8
D. x – 18
34.

A. 40 – 50
B. 30 – 40
C. 50 – 60
D. 60 – 70
35.

## If each observation of the data is increased by 5, then what happens to its mean?

A. is increased by 4
B. is increased by 5
C. is decreased by 4
D. is decreased by 5
Answer» B. is increased by 5
Chapter: Unit 2
36.

## 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
37.

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

A. Central tendency
B. Dispersion
C. Skewness
D. Symmetry
38.

## 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
Answer» C. Absolute measures of dispersion
39.

## 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
Answer» D. Relative measures of dispersion
40.

A. Constant
B. Flatness
C. Variation
D. Skewness
41.

A. Positive
B. Zero
C. Negative
D. Equal to 2
42.

A. Small
B. Large
C. Normal
D. Symmetrical
43.

A. Large
B. Small
C. Normal
D. Symmetric
44.

## 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
Answer» D. 48, 49, 50, 51, 52
45.

## 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
46.

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

A. Mean
B. Median
C. Range
D. Coefficient of variation
47.

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

A. Range
B. Quartile deviation
C. Mean deviation
D. Standard deviation
48.

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

A. Range
B. Average deviation
C. Standard deviation
D. Quartile deviation
49.

A. 140
B. 143
C. 146
D. 70
50.

A. -48
B. 40
C. -40
D. 48
51.

A. 0
B. 10
C. -10
D. 20
52.

A. 10
B. 15
C. 25
D. 35
53.

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

A. Interquartile range
B. Quartile deviation
C. Mean deviation
D. Standard deviation
54.

A. 3
B. 1/3
C. 2/3
D. 1
55.

A. 48
B. 12
C. 24
D. 72
56.

## The sum of all the squared deviations is divided by the total number of observations to calculate

A. population deviation
B. population variance
C. sample deviation
D. sample variance
57.

## For the recorded observation, the ratios measured by absolute variation are considered as

A. non-relative measures
B. relative measures
C. high uniform measures
D. low uniform measures
58.

## If the arithmetic mean is multiplied to coefficient of variation then the resulting value is classified as

A. coefficient of deviation
B. coefficient of mean
C. standard deviation
D. variance
59.

A. 7.08
B. 9.08
C. 10.2
D. 11.2
60.

## 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
Answer» C. Greater than the mode
61.

## 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
62.

A. Skewness
B. Symmetry
C. Dispersion
D. Kurtosis
63.

A. 81
B. 27
C. 9
D. 3
64.

A. 5
B. 15
C. 20
D. 25
65.

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

A. Symmetrical
B. Skewed to the left
C. Skewed to the right
D. Normal
66.

A. β1 > 0
B. β1 < 0
C. β1 = 0
D. β1 = 3
67.

## 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
68.

A. 0 and 1
B. 1 and +1
C. -1 and 0
D. -2 and +2
69.

## The value of β2 can be:

A. Less than 3
B. Greater than 3
C. Equal to 3
D. All of the above
Answer» D. All of the above
Chapter: Unit 3
70.

A. 0.75
B. 0.82
C. 0.90
D. 0.83
71.

A. 12
B. 10
C. 15
D. 18
72.

A. 10
B. 8
C. 9
D. 7
73.

A. 0.933
B. 0.652
C. 0.854
D. 0.751
74.

A. bXY
B. bYX
C. Not Specified
D. none
75.

A. bXY
B. bYX
C. Not Specified
D. none
76.

## If one of the regression coefficient is greater than unity, the other must be:

A. More than Unity
B. Less than Unity
C. Unity
D. none
77.

## The regression coefficients re independent of change of origin but:

A. Not of Scale
B. Also of Scale
C. No Change in scale
D. none
78.

## The coefficient of correlation between the regression coefficients is:

A. Arithmetic Mean
B. Geometric Mean
C. Average
D. none
79.

## The correlation coefficient is used to determine:

A. A specific value of the y-variable given a specific value of the x-variable
B. A specific value of the x-variable given a specific value of the y-variable
C. The strength of the relationship between the x and y variables
D. None of these
Answer» C. The strength of the relationship between the x and y variables
80.

## If there is a very strong correlation between two variables then the correlation coefficient must be:

A. any value larger than 1
B. much smaller than 0, if the correlation is negative
C. much larger than 0, regardless of whether the correlation is negative or positive
D. None of these alternatives is correct
Answer» B. much smaller than 0, if the correlation is negative
81.

## In regression, the equation that describes how the response variable (y) is related to the explanatory variable (x) is:

A. the correlation model
B. the regression model
C. used to compute the correlation coefficient
D. None of these alternatives is correct.
82.

## In regression analysis, the variable that is being predicted is the:

A. Response, or dependent, variable
B. Independent variable
C. intervening variable
D. is usually x
Answer» A. Response, or dependent, variable
83.

## In a regression analysis if r2 = 1, then :

A. SSE must also be equal to one
B. SSE must be equal to zero
C. SSE can be any positive value
D. SSE must be negative
Answer» B. SSE must be equal to zero
84.

## In regression analysis, the variable that is used to explain the change in the outcome of an experiment, or some natural process, is called:

A. the x-variable
B. the independent variable
C. the predictor variable
D. the explanatory variable
85.

## If the coefficient of determination is a positive value, then the regression equation:

A. must have a positive slope
B. must have a negative slope
C. could have either a positive or a negative slope
D. must have a positive y intercept
Answer» C. could have either a positive or a negative slope
86.

## If two variables, x and y, have a very strong linear relationship, then:

A. there is evidence that x causes a change in y
B. there is evidence that y causes a change in x
C. there might not be any causal relationship between x and y
D. None of these alternatives is correct.
Answer» A. there is evidence that x causes a change in y
87.

## If the coefficient of determination is equal to 1, then the correlation coefficient :

A. must also be equal to 1.
B. can be either -1 or +1.
C. can be any value between -1 to +1
D. must be -1
Answer» B. can be either -1 or +1.
88.

## In regression analysis, if the independent variable is measured in kilograms, the dependent variable:

A. must also be in kilograms
B. must be in some unit of weight
C. cannot be in kilograms
D. can be any units
Answer» D. can be any units
89.

## The strength (degree) of the correlation between a set of independent variables X and a dependent variable Y is measured by

A. Coefficient of Correlation
B. Coefficient of Determination
C. Standard error of estimate
D. All of the above
90.

## The percent of total variation of the dependent variable Y explained by the set of independent variables X is measured by:

A. Coefficient of Correlation
B. Coefficient of Skewness
C. Coefficient of Determination
D. Standard error
91.

## A coefficient of correlation is computed to be -0.95 means that:

A. The relationship between two variables is weak
B. The relationship between two variables is strong and positive
C. The relationship between two variables is strong and but negative
D. Correlation coefficient cannot have this value
Answer» C. The relationship between two variables is strong and but negative
92.

## Let the coefficient of determination computed to be 0.39 in a problem involving one independent variable and one dependent variable. This result means that:

A. The relationship between two variables is negative
B. The correlation coefficient is 0.39 also
C. 39% of the total variation is explained by the independent variable
D. 39% of the total variation is explained by the dependent variable
Answer» C. 39% of the total variation is explained by the independent variable
93.

## Relationship between correlation coefficient and coefficient of determination is that:

A. both are unrelated
B. The coefficient of determination is the coefficient of correlation squared
C. The coefficient of determination is the square root of the coefficient of correlation
D. both are equal
Answer» B. The coefficient of determination is the coefficient of correlation squared
94.

## The value of a correlation is reported by a researcher to be r = −0.5. Which of the following statements is correct?

A. The x-variable explains 25% of the variability in the y-variable.
B. The x-variable explains −25% of the variability in the y-variable.
C. The x-variable explains 50% of the variability in the y-variable.
D. The x-variable explains −50% of the variability in the y-variable.
Answer» A. The x-variable explains 25% of the variability in the y-variable.
95.

## Past data has shown that the regression line relating the final exam score and the midterm exam score for students who take statistics from a certain professor is: final exam = 50 + 0.5 × midterm One interpretation of the slope is

A. a student who scored 0 on the midterm would be predicted to score 50 on the final exam.
B. a student who scored 0 on the final exam would be predicted to score 50 on the midterm exam.
C. a student who scored 10 points higher than another student on the midterm would be
D. predicted to score 5 points higher than the other student on the final exam. students only receive half as much credit (.5) for a correct
Answer» A. a student who scored 0 on the midterm would be predicted to score 50 on the final exam.
96.

## One use of a regression line is

A. to determine if any x-values are outliers.
B. to determine if any y-values are outliers.
C. to determine if a change in x causes a change in y.
D. to estimate the change in y for a one-unit change in x.
Answer» D. to estimate the change in y for a one-unit change in x.
97.

## The percent of total variation of the dependent variable Y explained by the set of independent variables X is measured by

A. Coefficient of Correlation
B. Coefficient of Skewness
C. Coefficient of Determination
D. Standard Error or Estimate
98.

## The strength (degree) of the correlation between a set of independent variables X and a dependent variable Y is measured by

A. Coefficient of Correlation
B. Coefficient of Determination
C. Standard error of estimate
D. All of the above
Answer» D. All of the above
99.

## A coefficient of correlation is computed to be -0.95 means that

A. The relationship between two variables is weak.
B. The relationship between two variables is strong and positive
C. The relationship between two variables is strong and but negative
D. Correlation coefficient cannot have this value
Answer» C. The relationship between two variables is strong and but negative
100.

## Relationship between correlation coefficient and coefficient of determination is that

A. both are unrelated
B. The coefficient of determination is the coefficient of correlation squared
C. The coefficient of determination is the square root of the coefficient of correlation
D. both are equal
Answer» B. The coefficient of determination is the coefficient of correlation squared