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170+ Quantitative Methods for Economic Analysis 1 Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .

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
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.
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
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
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
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
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
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
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.
10.

A correlation coefficient of +0.40 could be considered

A. weak
B. moderate
C. strong
D. zero
Answer» B. moderate
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
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
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
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
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
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
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%
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
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
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
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
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
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
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
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
26.

Statistics is the study of _______ measures of the values associated with variables

A. verbal
B. pictorial
C. descriptive
D. numerical
Answer» D. numerical
27.

‘Primary source data is better than secondary source data’. This statement is

A. true
B. false
C. neither true nor false
D. any of the above
Answer» B. false
28.

Celsius and Fahrenheit temperature scales are examples of interval levels of measurement

A. true
B. false
C. neither true nor false
D. any of the above
Answer» A. true
29.

The number of students on a college campus is a continuous variable

A. true
B. false
C. neither true nor false
D. any of the above
Answer» B. false
30.

______refer to population characteristics while _____describe sample characteristics

A. statistic, parameter
B. parameter, statistic
C. regression, correlation
D. correlation, regression
Answer» B. parameter, statistic
31.

Gender is categorized as____data

A. nominal
B. ordinal
C. interval
D. ratio
Answer» A. nominal
32.

You are conducting a study to see whether a new experimental medication will cause bald men to grow hair. You divide your patients into 2 groups. To one group you give the medication. To the other group, you give a placebo. In this study, the correct terms for the taking of the medication and the growth of hair are the following.

A. both the medication and the hair growth are dependent variables
B. both the medication and the hair growth are independent variables
C. the medication is the dependent variable, and the hair growth is the independent variable
D. the medication is the independent variable, and the hair growth is the dependent variable
Answer» D. the medication is the independent variable, and the hair growth is the dependent variable
33.

The concept of a variable implies that the values of every characteristic of an item are different

A. true
B. false
C. neither true nor false
D. any of the above
Answer» B. false
34.

Which of the following definitions is the definition of the MEAN

A. the mean is the largest value
B. the mean is the value that half of the entries are below and half of the entries are above
C. the mean is the value that has the highest frequency
D. the mean is the average calculated by adding up all the values and dividing by the number
Answer» D. the mean is the average calculated by adding up all the values and dividing by the number
35.

Which of the following definitions is the definition of the MEDIAN?

A. the median is the value that half of the entries are below and half of the entries are above
B. the median is the value that has the highest frequency
C. the median is the largest value
D. the median is the average calculated by adding up all the values and dividing by the
Answer» A. the median is the value that half of the entries are below and half of the entries are above
36.

What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15}

A. 12
B. 8
C. 7
D. 7.5
Answer» C. 7
37.

A teacher had 5 students who took a test. Their test scores are as follows: 62, 86, 72, 66, 72. What is the mode of the test

A. 72
B. 86
C. 62
D. 86
Answer» A. 72
38.

Students A,B and C took part in a recent quiz. Student A scored 50 points, Student B scored 60 points and Student C scored 70 points. What is the mean of this quiz

A. 60
B. 50
C. 70
D. 45
Answer» A. 60
39.

Contestants of a competition have reached the semi-finals. After the semi-finals, their score are of below. Those whose score is lower than the median will not be able to enter the finals, so who managed to enter the finals. Here is the list of contestants: Anoop - 70 Points, Babu - 50 Points, Cindu - 65 Points, Das - 90 Points, Emy - 55 Points, Fasna - 85 Points, Gopi - 100 Points

A. babu, cindu and emy
B. anoop, das, fasnn and gopi
C. anoop, babu, cindu and emy
D. babu, cindu, das, gopi
Answer» B. anoop, das, fasnn and gopi
40.

What is the median in the following numbers: 19, 21, 18, 17, 18, 22, 46

A. 19
B. 18
C. 17
D. 21
Answer» A. 19
41.

A teacher had 5 students who took a test. Their test scores are as follows: 62, 86, 72, 66, 72. What is the mode of the test

A. 72
B. 86
C. 62
D. 66
Answer» A. 72
42.

Which of the curves is more peaked than the normal curve?

A. mesokurtic
B. platykurtic
C. lapokurtic
D. skewness
Answer» C. lapokurtic
43.

What will be the range of "r" when we find that the dependent variable increases as the independent variable increases

A. 0 to -0.05
B. 1 to 2
C. 0.1 to 1
D. 2 to 3
Answer» C. 0.1 to 1
44.

Which of the following correlation coefficients shows the highest degree of association

A. −1
B. 1
C. 0.9
D. both a & b
Answer» D. both a & b
45.

The sum of deviations taken from arithmetic mean is

A. minimum
B. zero
C. maximum
D. none of the above is possible
Answer» B. zero
46.

Which of the following statements is not correct

A. extreme value in data affects the mean
B. mean is also known as average
C. some data sets do not have mean
D. at times weighted mean is much better than the simple mean
Answer» C. some data sets do not have mean
47.

Which of the following is not true in respect of mean deviation

A. it is simple to understand
B. it considers each & every item in a series
C. it is capable of further algebraic treatment
D. the extreme items have less effect on its magnitude
Answer» C. it is capable of further algebraic treatment
48.

What is the purpose of a summary table?

A. to see differences between or among categories
B. to list data to create a bar or pie chart
C. this is the only way to present categorical data in numerical form
D. to sum the values of responses to a survey
Answer» A. to see differences between or among categories
49.

A graphical representation of a frequency distribution is called a__________________

A. scatter diagram
B. histogram
C. time-series plot
D. stem-and-leaf plot
Answer» B. histogram
50.

The width of a class interval in a frequency distribution (or bar chart) will be approximately equal to the range of the data divided by the ______________ .

A. highest value in the data set
B. average of the data set
C. lowest value in the data set
D. number of class intervals
Answer» D. number of class intervals

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