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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) .

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
D. adjacent classes cannot overlap
Answer» D. adjacent classes cannot overlap
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
Answer» A. bar chart
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.

Arrange the numbers in numerical order and see which is repeated most often. This describes which measure of central tendency

A. mean
B. median
C. range
D. mode
Answer» 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
Answer» B. ogive
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
Answer» D. pie chart
60.

You are constructing a histogram that is required to use 6 classes for a data set that ranges from 15 to 70. A class width of ____ units would be an appropriate choice

A. 9
B. 10
C. 15
D. 6
Answer» B. 10
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
Answer» A. scatter diagram
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
Answer» A. interquartile range
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
Answer» C. median
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
Answer» A. mode
66.

How many elements of a data set are between the first and third quartiles

A. one half
B. one third
C. one fourth
D. three fourths
Answer» A. one half
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
Answer» B. 0
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
Answer» C. variance measures the variability of values about the mean
70.

Which of the following sampling techniques will not result in a probability sample?

A. stratified
B. quota
C. random
D. systematic
Answer» B. quota
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
Answer» C. standard error
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
Answer» 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
Answer» B. quota sampling
75.

In which of the following nonrandom sampling techniques does the researcher ask the research participants to identify other potential research participants

A. snowball
B. convenience
C. purposive
D. quota
Answer» A. snowball
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
Answer» B. sampling with replacement
77.

Which of the following is not a type of nonrandom sampling

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

___________ is a set of elements taken from a larger population according to certain rules

A. sample
B. population
C. statistic
D. element
Answer» A. sample
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
Answer» B. secondary data
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
Answer» A. true
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
Answer» 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.

If the slope of the regression line is calculated to be 2.5 and the intercept 16 then the value of Y when X is 4 is:

A. 16
B. 66.5
C. 2.5
D. 26
Answer» 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
Answer» B. the regression model
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

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