# 170+ Quantitative Methods for Economic Analysis 1 Solved MCQs

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1.

A. 2.80
B. 3.00
C. 2.81
D. 2.8
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
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
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
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. weak
B. moderate
C. strong
D. zero
11.

A. regression
B. elasticity
C. correlation
D. mean
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
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
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.

A. 16%
B. 67%
C. 25%
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
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
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
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
23.

A. ordinal
B. ratio
C. nominal
D. interval
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.

A. verbal
B. pictorial
C. descriptive
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
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
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
30.

## ______refer to population characteristics while _____describe sample characteristics

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

A. nominal
B. ordinal
C. interval
D. ratio
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
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.

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

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

A. 60
B. 50
C. 70
D. 45
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.

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

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

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

A. 0 to -0.05
B. 1 to 2
C. 0.1 to 1
D. 2 to 3
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
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
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
51.

## When constructing a frequency distribution, which of the following rules must be followed?

A. the midpoint of each class must be an integer
B. the width of each class is equal to the lowest value in the data set
C. the number of classes must be an even number
52.

## The rule of thumb for creating a frequency distribution is to divide the data into 5-15 classes. While larger numbers of classes allow for larger data sets, how do you know exactly how many classes to use

A. if in doubt about the number of classes, select 10 since it is the midpoint between 5 and 15 classes
B. select the number of classes that provides definition to the shape of the data
C. determine the width of the class interval, then calculate the number of classes
D. any number of classes between 5 and 15 is sufficient
Answer» B. select the number of classes that provides definition to the shape of the data
53.

## Considering the various types of tables and charts you have studied, which table, chart, diagram or plot would you use to depict categorical data for two variables in a visual format

A. bar chart
B. pie chart
C. scatter plot
D. contingency table
54.

## For the list of values, 13, 18, 13, 14, 13, 16, 14, 21, 13, the mean, median, mode, and range are in the order

A. 15, 13, 14, 8
B. 15, 14, 13, 8
C. 8, 15, 14, 13
D. 14, 15, 13, 8
Answer» B. 15, 14, 13, 8
55.

A. mean
B. median
C. range
D. mode
56.

## The cumulative frequency for a particular class is equal to 35. The cumulative frequency for the next class will be _________________

A. less than 35
B. equal to 65
C. 35 minus the next class frequency
D. 35 plus the next class frequency
Answer» D. 35 plus the next class frequency
57.

## Which of the following would be most helpful in the construction of a pie chart

A. cumulative percentages
B. ogive
C. relative frequencies
D. frequency distribution
58.

## The highest bar in a histogram represents

A. the class with the lowest relative frequency
B. the class with the lowest frequency
C. the class with the highest frequency
D. the class with the highest cumulative frequency
Answer» C. the class with the highest frequency
59.

## The movie theater industry tracks ticket sales by age groups. A _______would provide an appropriate representation for the proportion of ticket sales attributed to each age group.

A. ogive
B. line graph
C. scatter diagram
D. pie chart
60.

A. 9
B. 10
C. 15
D. 6
61.

## A _______ would be an effective tool to assess the relationship between the grade earned in a class and the number of hours spent studying

A. scatter diagram
B. bar chart
C. histogram
D. pie chart
62.

## How might an extreme value in the sample data set affect the value of the mean

A. an extreme value cannot affect the mean if it is close to the mean
B. all values are treated equally when determining the mean, so an extreme value cannot affect it
C. since all values are summed, any extreme value can influence the mean to a large extent
D. one extreme value is still only one value, so it cannot affect the mean very much
Answer» C. since all values are summed, any extreme value can influence the mean to a large extent
63.

## Which of the following is not a measure of central tendency

A. interquartile range
B. median
C. mode
D. geometric mean
64.

## Which of the following is the most appropriate measure of central tendency for ordinal data

A. coefficient of variation
B. variance
C. median
D. mean
65.

## Which of the following measures of central tendency is not affected by extreme values in the sample data set

A. mode
B. median
C. median and mode
D. mean
66.

A. one half
B. one third
C. one fourth
D. three fourths
67.

## Which of the following measures become larger as the data is more dispersed

A. median and range
B. mean, variance, and standard deviation
C. mean and median
D. range, variance, and standard deviation
Answer» D. range, variance, and standard deviation
68.

## The sum of deviations about the arithmetic mean is always equal to _______

A. 1
B. 0
C. variance
D. geometric mean
69.

## How is the arithmetic mean related to the variance

A. variance has the square of the mean in its formula
B. variance is not related to the mean, but standard deviation is
C. variance measures the variability of values about the mean
D. they are not related. one is a measure of central tendency, and the other is a measure of
70.

A. stratified
B. quota
C. random
D. systematic
71.

## The standard deviation of a sampling distribution is commonly called which of the following

A. sampling deviation
B. standard margin
C. standard error
D. statistical range
72.

## Which of the following techniques yields a simple random sample

A. choosing volunteers from an introductory psychology class to participate
B. listing the individuals by ethnic group and choosing a proportion from within each ethnic group at random
C. numbering all the elements of a sampling frame and then using a random number table to pick cases from the table
D. randomly selecting schools, and then sampling everyone within the school
Answer» C. numbering all the elements of a sampling frame and then using a random number table to pick cases from the table
73.

## People who are available, volunteer, or can be easily recruited are used in the sampling method called ______

A. simple random sampling
B. cluster sampling
C. systematic sampling
D. convenience sampling
74.

## Which of the following types of sampling involves the researcher determining the appropriate sample sizes for the groups identified as important, and then taking convenience samples from those groups

A. proportional stratified sampling
B. quota sampling
C. one-stage cluster sampling
D. two-stage cluster sampling
75.

A. snowball
B. convenience
C. purposive
D. quota
76.

## The type of sampling in which each member of the population selected for the sample is returned to the population before the next member is selected is called _________

A. sampling without replacement
B. sampling with replacement
C. simple random sampling
D. systematic sampling
77.

## Which of the following is not a type of nonrandom sampling

A. cluster sampling
B. convenience sampling
C. quota sampling
D. purposive sampling
78.

A. sample
B. population
C. statistic
D. element
79.

## Questionnaires can address events and characteristics taking place ______

A. in the past (retrospective questions)
B. in the present (current time questions)
C. in the future (prospective questions)
D. all of the above
Answer» D. all of the above
80.

## Which of the following terms best describes data that were originally collected at an earlier time by a different person for a different purpose

A. primary data
B. secondary data
C. experimental data
D. field notes
81.

## Which of the following is true concerning observation method of data collection

A. it takes less time than self-report approaches
B. it costs less money than self-report approaches
C. it is often not possible to determine exactly why the people behave as they do
D. all of the above
Answer» C. it is often not possible to determine exactly why the people behave as they do
82.

## Correlation refers to

A. the causal relationship between two variables
B. the association between two variables
C. the proportion of variance that two variables share
D. a statistical method that can only be used with a correlational research design
Answer» B. the association between two variables
83.

## If two variables are highly correlated, what do you know

A. that they always go together
B. that high values on one variable lead to high values on the other variable
C. that there are no other variables responsible for the relationship
D. that changes in one variable are accompanied by predictable changes in the other
Answer» D. that changes in one variable are accompanied by predictable changes in the other
84.

## A researcher finds a correlation of 0.40 between personal income and the number of years of college completed. Based upon this finding he can conclude that

A. a person who attended four years of college will have an annual income of rs. 40,000
B. more years of education causes higher income
C. personal income is a positively skewed variable
D. more years of education are associated with higher income
Answer» D. more years of education are associated with higher income
85.

## Which of the following would not allow you to calculate a correlation?

A. a negative relationship between x and y
B. a positive relationship between x and y
C. a curvilinear relationship between x and y
D. a linear relationship between x and y
Answer» C. a curvilinear relationship between x and y
86.

## Correlation relates the relative position of a score in one distribution to

A. the relative position of a score in another distribution
B. the mean of the z-scores from another distribution
C. the total variance of all scores in both distributions
D. the standard deviation of the z-scores for both distributions
Answer» A. the relative position of a score in another distribution
87.

## If a positive correlation exists between height and weight, a person with above average height is expected to have above average weight

A. true
B. false
C. insufficient information to draw a conclusion
D. all of the above
88.

## Regression analysis:

A. measures the demand for a good
B. measures growth
C. establishes cause and effect
D. establishes a relationship between two variables
Answer» D. establishes a relationship between two variables
89.

## In the equation of a straight line, Y = mX + c the term, m is the:

A. independent variable
B. intercept
C. dependent variable
D. slope
90.

## In the equation of a straight line, Y = mX + c , if c is equal to zero then:

A. the line of best fit passes through the origin
B. the line of best fit cuts the x axis to the right of the y axis
C. does not cross the x axis
D. the line of best fit cuts the x axis to the left of the y axis
Answer» A. the line of best fit passes through the origin
91.

## In the equation of a straight line, Y = mX + c , if m is equal to −2 then:

A. there is a positive relationship between the two variables
B. there is no relationship between the two variables
C. there is a negative relationship between the two variables
D. the relationship between the two variables is perfect
Answer» C. there is a negative relationship between the two variables
92.

## In the equation of a straight line, Y = mX + c , if m is equal to zero then when:

A. x increases y decreases
B. y increases x increases
C. x increases y increases
D. x increases y remains constant
Answer» D. x increases y remains constant
93.

## If the Pearson correlation co-efficient R is equal to 1 then:

A. there is a perfect positive relationship between the two variables
B. there is a positive relationship between the two variables
C. there is no relationship between the two variables
D. there is a negative relationship between the two variables
Answer» A. there is a perfect positive relationship between the two variables
94.

## The mathematical notation R2 is for:

A. the co-efficient of determination
B. the co-efficient of variation
C. spearman’s co-efficient of rank correlation
D. pearson’s co-efficient of correlation
Answer» A. the co-efficient of determination
95.

A. 16
B. 66.5
C. 2.5
D. 26
96.

## If Spearman’s co-efficient of rank correlation is equal to one, then:

A. all the ‘total variation’ is ‘explained’ by the regression line
B. the rankings of the two variables partially agree
C. the rankings of the two variables is totally different
D. the rankings of the two variables totally agree
Answer» D. the rankings of the two variables totally agree
97.

## 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
98.

## 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
99.

## 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
100.

## Regression modelling is a statistical framework for developing a mathematical equation that describes how

A. one explanatory and one or more response variables are related
B. several explanatory and several response variables response are related
C. one response and one or more explanatory variables are related
D. all of these are correct
Answer» C. one response and one or more explanatory variables are related