# 160+ Quantitative Methods for Economic Analysis 2 Solved MCQs

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1.

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

A. population parameter
B. sample parameter
C. sample statistic
D. population mean
2.

## Statistics branches include

A. applied statistics
B. mathematical statistics
C. industry statistics
D. both a and b
Answer» D. both a and b
3.

## To enhance a procedure the control charts and procedures of descriptive statistics are classified into

A. behavioural tools
B. serial tools
C. industry statistics
D. statistical tools
4.

## Sample statistics are also represented as

A. lower case greek letter
B. roman letters
C. associated roman alphabets
D. upper case greek letter
5.

## Individual respondents, focus groups, and panels of respondents are categorised as

A. primary data sources
B. secondary data sources
C. itemised data sources
D. pointed data sources
6.

## The variables whose calculation is done according to the weight, height and length and weight are known as:

A. flowchart variables
B. discrete variables
C. continuous variables
D. measuring variables
7.

## A method used to examine inflation rate anticipation, unemployment rate and capacity utilisation to produce products is classified as

A. data exporting technique
B. data importing technique
C. forecasting technique
D. data supplying technique
8.

## Graphical and numerical methods are specialized processes utilised in

A. education statistics
B. descriptive statistics
D. social statistics
9.

## The scale applied in statistics which imparts a difference of magnitude and proportions is considered as

A. exponential scale
B. goodness scale
C. ratio scale
D. satisfactory scale
10.

## Review of performance appraisal, labour turnover rates, planning of incentives and training programs and are examples of

A. statistics in production
B. statistics in marketing
C. statistics in finance
D. statistics in personnel management
Answer» D. statistics in personnel management
11.

## Which one is correct for a binomial distribution?

A. mean = variance
B. mean > variance
C. mean < variance
D. mean ≤ variance
12.

A. .40
B. .50
C. .60
D. .70
13.

A. 3/8
B. 2/8
C. 1/8
D. 1
14.

A. 10
B. 5
C. 6
D. 4
15.

A. 2/8
B. 5/8
C. 8/28
D. 15/28
16.

## What is true for a poison Distribution?

A. mean = variance
B. mean > variance
C. mean < variance
D. mean ≤ variance
17.

## A statement about a population developed for testing is called

A. hypothesis
B. hypothesis testing
C. level of significance
D. test-statistic
18.

## Any hypothesis, which are tested for the purpose of rejection under the assumption that it is true, is called

A. null hypothesis
B. alternative hypothesis
C. statistical hypothesis
D. composite hypothesis
19.

## The alternative hypothesis is also called

A. null hypothesis
B. statistical hypothesis
C. research hypothesis
D. simple hypothesis
20.

## A rule or formula that provides a basis for testing a null hypothesis is called

A. test-statistic
B. population statistic
C. both of these
D. none of the above
21.

A. 0 to ∞
B. 0 to 1
C. -∞ to +∞
D. -1 to +1
22.

## If Ho is true and we reject it is called

A. type-i error
B. type-ii error
C. standard error
D. sampling error
23.

## A passing student is failed by an examiner, it is an example of

A. type-i error
B. type-ii error
C. best decision
D. all of the above
24.

## 1 – α is also called

A. confidence coefficient
B. power of the test
C. size of the test
D. level of significance
25.

## 1 – α is the probability associated with

A. type-i error
B. type-ii error
C. level of confidence
D. level of significance
26.

## Area of the rejection region depends on

A. size of α
B. size of β
C. test-statistic
D. number of values
27.

## Level of significance is also called

A. power of the test
B. size of the test
C. level of confidence
D. confidence coefficient
Answer» B. size of the test
28.

## Critical region is also called

A. acceptance region
B. rejection region
C. confidence region
D. statistical region
29.

## The weighted average of price relations using basic values as weights is same as the ………………

A. laspeyres quantity index
B. paasches’ price index
C. laspeyres price index
D. kelly’s price index
30.

## Which one of the following indices satisfies both time reversal and factor reversal list ?

A. lasperyres index number
B. fischer’s index number
C. paasches index number
D. bowley’s index number
31.

## Which one of the following index numbers is based on Geometric Mean ?

A. lasperyres index number
B. fischer’s index number
C. paasches index number
D. bowley’s index number
32.

A. 220
B. 215
C. 225
D. 230
33.

## The major purpose of price index is to measure change in the …………

A. standard of living
B. gold content of money
D. capacity to produce
34.

## Which of the following statement is not correct ? Fishers’ index :

A. lies between laspeyres’ (l) & paasches’ index
B. is the arithmetic mean of l & p
C. is the geometric mean of l & p
D. is equal to l or p if l = p
Answer» B. is the arithmetic mean of l & p
35.

## In consumer price index number weights are determing on the basis of ………..

A. actual price of the index
B. the consumption pattern of the class of population
C. actual consumption expenditure
D. both price & consumption expenditure
Answer» B. the consumption pattern of the class of population
36.

## Consumer price index number indicates

A. the general price level
B. the wholesale price level
C. export price
D. all of these
Answer» A. the general price level
37.

## Index Numbers measure

A. the change in base year prices
B. the change in current year prices
C. real changes
D. none of the above
Answer» A. the change in base year prices
38.

A. × 100
B. × 100
C. × 100
D. × 100
39.

## The day to day irregularities in business activity are the example of

A. secular trend
B. seasonal fluctuations
C. cyclical fluctuations
D. random or erratic fluctuations
Answer» D. random or erratic fluctuations
40.

## Fisher’s ideal index Number satisfies

A. time reversal & factor reversal list
B. only time reversal list
C. only factor reversal list
D. circular list
Answer» A. time reversal & factor reversal list
41.

## Fishers ideal index is obtained as :

A. the sum of laspeyre’s & paasche’s indices
B. the geometric mean of laspeyer’s & paasche’s indices
C. the arithemetic mean of laspeyer’s & paasche’s indices
D. the harmonic mean of laspeyre’s & paasche’s indices
Answer» B. the geometric mean of laspeyer’s & paasche’s indices
42.

## ∑ ∑ × 100 is the formula for calculating ……..

A. bowley’s index
B. fisher’s index
C. laspeyer’s index
D. paasche’s index
43.

## Laspeyres index measures change in

B. current consumption
C. both fixed and current market basket
D. none
44.

## is the formula for calculating

A. fishers index
B. bowley’s method
C. laspeyre’s index
D. paasche’s index
45.

## Recurrent variations in time series that usually last longer than a year is known as ……………

A. seasonal variation
B. secular trend
C. irregular variation
D. cyclical variation
46.

## Paasche’s index measures change in

B. current consumption
C. both fixed and current market
D. none
47.

## A lock-out in a factory for a month is associated with the component of time series

A. trend
B. seasonal variation
C. cyclic variation
D. irregular variation
48.

## Consumer price index number is constructed for

A. a well defined section of people
B. workers only
C. all people
D. all the above
Answer» A. a well defined section of people
49.

## Which one is not the test of index Number

A. unit test
B. time reversal test
C. triangular test
D. factor reversal test
50.

## The average of Laspeyre’s and Paasche’s index number which gives Fisher’s index number is

A. am
B. gm
C. hm
D. weighted average
51.

A. price index × 100
B. 100
C. 100/
D. real wage
52.

## Factor reversal list permits the interchange of

A. base periods
B. price & quantity
C. weights
D. none of the above
53.

## The method which is not used for estimating seasonal components of a time series

A. ratio to trend method
C. method of simple average
D. method of least squares
Answer» D. method of least squares
54.

## Cost of living index is known as

A. consumer price index
B. whole sale price index
C. quantity index
D. none
55.

## Paasches index number is based on

A. base year quantity
B. current year quantity
C. day year quantity
D. none
56.

A. correlation
B. dispersion
C. mean
D. index numbers
57.

A. index number
B. correlation
C. regression
D. time series
58.

## Test to determine whether a given method will work both forward & backward

A. unit test
B. factor reversal test
C. time reversal test
D. none
59.

A. index numbers
B. time series
C. regression
D. correlation
60.

## Earthquake is an example of

A. secular trend
B. seasonal variation
C. cyclical variation
D. irregular variation
61.

## All methods of index numbers except simple (unweighted) aggregative index satisfies

A. unit test
B. time reversal list
C. factor reversal test
D. circular test
62.

A. 1749
B. 1849
C. 1790
D. 1801
63.

## Statistics is ………………

A. science only
B. art only
C. science and art
D. neither science nor art
64.

## Statistics can……………

A. prove anything
B. disprove any thing
C. neither prove nor disprove anything is just a tool
D. none of these
Answer» C. neither prove nor disprove anything is just a tool
65.

A. one
B. two
C. three
D. none of these
66.

## The number of observations corresponding to a class is known as ………………..of that class.

A. population
B. frequency
C. class interval
D. none of these
67.

## Diagrams and graphs are the tools of…………………

A. collection of data
B. analysis of data
C. summarisation of data
D. presentation of data
68.

A. pie diagram
B. pictogram
C. sectors
D. none of these
69.

A. graph
B. curve
C. diagram
D. pictogram
70.

## In a Histogram bars……………….

A. touch each other
B. do not touch
C. either way
D. neither way
71.

## With the help of histogram we can prepare

A. frequency polygon
B. frequency cure
C. both
D. done
72.

A. first
B. second
C. third
D. fourth
73.

A. open-end
B. closed-end
C. both of these
D. none of these
74.

## Which average is affected most by extreme observations

A. mode
B. medium
C. geometric mean
D. arithmetic mean
75.

## Which of the following is the most unstable average ?

A. mode
B. median
C. arithmetic mean
D. geometric mean
76.

## For dealing with qualitative data, the best average is …………..

A. arithmetic mean
B. geometric mean
C. harmonic mean
D. median
77.

A. maximum
B. minimum
C. zero
D. one
78.

A. maximum
B. minimum
C. zero
D. one
79.

## The best measure of central tendency is …………….

A. arithmetic mean
B. geometric mean
C. median
D. harmonic mean
80.

## The 75th percentile is

A. greater than d6
B. less than d6
C. equal to d6
D. equal to d6
81.

## Average is a measure of ………….

A. central tendancy
B. dispersion
C. symmetry
D. concentration
82.

A. median
B. mode
C. mean
D. quartile
83.

A. 100
B. 10
C. 2
D. 4
84.

A. decile
B. percentile
C. quartiles
D. octiles
85.

## Which of the following represents median ?

A. fiftieth percentile
B. first quartile
C. sixth decile
D. 20th percentile
86.

A. 40
B. 50
C. 60
D. 70
87.

A. reciprocal
B. substitute
C. both of these
D. none of these
88.

A. median
B. variance
C. mode
D. none of these
89.

## The best measure of dispersion is …………….

A. range
B. variance
C. quartile deviations
D. standard deviation
90.

## The measure of dispersion based on all the observations of the series is …………….

A. range
B. quartile deviation
C. standard deviation
D. inter quartile range
91.

A. 15
B. 5
C. 8
D. 10
92.

A. mean
B. median
C. mode
D. zero
93.

## Meaures of dispersion which ignores the sign is……………

A. mean deviation
B. range
C. quartile deviation
D. standard deviation
94.

## When 5 is added to all the values of a series then standard deviation

A. does not change
B. becomes 5 times
C. increased by 5
D. decreased by 5
95.

A. sd
B. sd
C. (sd)
D. √sd
96.

## For the open-end class frequency distribution the appropriate measure of dispersion is………….

A. range
B. quartile deviation
C. mean deviation
D. standard deviation
97.

A. +1
B. -1
C. +3
D. -3
98.

A. 1
B. -1
C. 0
D. 4
99.

A. -1
B. +1
C. ±1
D. 0
100.

## When the correlation coefficient r = ±1, the two regression lines:

A. are perpendicular to each other
B. are parallel to each other
C. coincide
D. do not exist