JAIRAMS ARTS AND SCIENCE COLLEGE

(Affiliated to Bharathidasan University, Tiruchirappalli)

NH-7, Madurai Bye-Pass Road, Aattamparappu, Kakkavadi Po, Karur-639003.
Email: jairamskarur@gmail.com Web: www.karurjairams.ac.in

BUSINESS TOOLS FOR DECISION MAKING

SUBJECT CODE:22CCCCA4
QUESTION BANK
I-B.COM(CA)
ONE MARK
1. The sum of deviations of observations from their arithmetic mean:
A. Maximum
B. Least
C. Zero
D. Two
Answer:C
2. The sum of absolute deviations is minimum when taken from:
A. Mean
B. Median
C. Mode
D. None of
these
Answer:B
3. The sum of squared deviations is minimum when taken from:
A. Mean
B. Median
C. Mode
D. None of
these
Answer:A
4. What is the median of 33, 86, 68, 32, 80, 48, 70?
A. 32
B. 68
C. 80
D. 8
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.

5. In a moderately skewed distribution, the value of mean is 16 and that of mode is 25.
A. 20
B. 19
C. 21
D. None of these
Answer:B
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
7. For a symmetrical distribution, Q1 and Q3 are 20 and 60 respectively. The value of median will be:
A. 20
B. 30
C. 40
D. 50
Answer:C
8. The variate values which divide a series into ten equal parts are called:
 A. Quartiles
B. Deciles
C. Percentiles
D. None of these
Answer:B
9. From which average, the sum of deviations is zero?
A. Mean
B. Median
C. Mode
D. None of these
Answer:A
10. The average to be used to determine the average size of the shoe sold in a shop is:
A. Mean
B. Median
C. Mode
D. None of these
Answer:C
11. Find the Mode of 5, 3, 27, 5, 9, 3, 8, 5:
A. 5
B. 27
C. 9
D. 3
Answer:A
12. In a moderately asymmetrical distribution, the value of mean is 75 and the value of mode is
60:
A. 75
B. 70
C. 85
D. 80
Answer:B
 13. Given Mean = 70.2 and mode = 70.5. Find the median using empirical relationship
among them.
A. 120
B. 150
C. 180
D. 300
Answer:B

14. In a moderately skewed distribution, the value of mode is 120 and that of median is 140.
Find the value of arithmetic mean.
A. 150
B. 160
C. 170
D. 180
Answer:A

15. The arithmetic mean of the marks obtained by 50 students was calculated as 44. It was later
discovered that a score of 36 was misread as 56. Find the correct value of arithmetic mean of the marks
obtained by the students.
A. 43
B. 43.6
C. 45
D. 50
Answer:B
16. The marks obtained by 9 students in a test are 25, 20, 15, 45, 18, 7, 10, 38 and
Find the median.
A. 38
B. 20
C. 18
D. 15
Answer:C
17. In a moderately asymmetrical distribution, the mode and mean are 32.1 and
35.4 respectively. Calculate the median.
A. 35
B. 34.3
 C. 36
D. 37
Answer:B

18. In a moderately skewed distribution, the mode and median are 20 and 24 respectively.
Calculate the value of mean.
A. 27
B. 26
C. 25
D. 28
Answer:B
19. The mean weight of 150 students in a class is 60 Kg. The mean weight of Boy students is 70 Kg
and that of a girl students is 55 kg. Find the number of Boys and Girls in the class.
A. 50 and 100
B. 100 and 50
C. 150 and 200
D. 200 and 150
Answer:A

20. A distribution consists of three components with total frequencies of 200, 250 and 300 having
means 25, 10 and 15 respectively. Find the mean of the combined distribution.
A. 17
B. 16
C. 15
D. 20
Answer:B
21. The arithmetic mean is 12 and the number of observations are 20 then the sum of all the values is
A. 8
B. 32
C. 240
D. 1.667
Answer:C

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

23. The mean or average used to measure central tendency is called

A. sample mean
B. arithmetic mean
C. negative mean
D. population mean
Answer:B

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
Answer:A
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
Answer:B

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 paramete
sample statistic
C. population mean
Answer:C

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

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
Answer:D

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

30. In statistics out of 100, marks of 21 students in final exams are as 90, 95, 95, 94, 90, 85, 84, 83, 85,
81, 92, 93, 82, 78, 79, 81, 80, 82, 85, 76, 85 then mode of data is
A. 85
B. 95
C. 90
D. 81
Answer:A

31. Branches of statistics includes

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

32. What is the median of the data 78, 56, 22, 34, 45, 54, 39, 68, 54, 84?
A. 54
B. 53
C. 55
D. 51
Answer:A

33. Find the mean of x + 77, x + 7, x + 5, x + 3 and x – 2?

A. x + 8
B. x + 18
C. x – 8
D. x – 18
Answer:B

34. In the class intervals 40 – 50, 50 – 60, the number 50 is included in which of the following?
A. 40 – 50
B. 30 – 40
C. 50 – 60
D. 60 – 70
Answer:C

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
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
Answer:A

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

A. Central tendency
B. Dispersion
C. Skewness
D. Symmetry
Answer:B

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

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

40. The degree to which numerical data tend to spread about an average value called:
A. Constant
B. Flatness
C. Variation
 D. Skewness
Answer:C

41. The measures of dispersion can never be:

A. Positive
B. Zero
C. Negative
D. Equal to 2
Answer:C

42. If all the scores on examination cluster around the mean, the dispersion is said to be:
A. Small
B. Large
C. Normal
D. Symmetrical
Answer:A

43. If there are many extreme scores on all examination, the dispersion is:
A. Large
B. Small
C. Normal
D. Symmetric
Answer:A

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

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
Answer:C

46. The measure of dispersion which uses only two observations is called:
A. Mean
B. Median
C. Range
D. Coefficient of variation
Answer:C

47. The measure of dispersion which uses only two observations is called:
A. Range
B. Quartile deviation
C. Mean deviation
D. Standard deviation
Answer:A

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
Answer:A

49. The range of the scores 29, 3, 143, 27, 99 is:

A. 140
B. 143
C. 146
D. 70
Answer:A

50. If the observations of a variable X are, -4, -20, -30, -44 and -36, then the value of the range will be:
A. -48
 B. 40
C. -40
D. 48
Answer:B

51. The range of the values -5, -8, -10, 0, 6, 10 is:

A. 0
B. 10
C. -10
D. 20
Answer:D

52. If the maximum value in a series is 25 and its range is 15, the maximum value of the series is:
A. 10
B. 15
C. 25
D. 35
Answer:A

53. Half of the difference between upper and lower quartiles is called:
A. Interquartile range
B. Quartile deviation
C. Mean deviation
D. Standard deviation
Answer:B

54. If Q3=20 and Q1=10, the coefficient of quartile deviation is:

A. 3
B. 1/3
C. 2/3
D. 1
Answer:B

55. If the quartile range is 24 then the quartile deviation is:

A. 48
 B. 12
C. 24
D. 72
Answer:B

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
Answer:B

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
Answer:B

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
Answer:B

59. If mean absolute deviation of set of observations is 8.5 then value of quartile deviation is
A. 7.08
B. 9.08
C. 10.2
D. 11.2
Answer:A
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

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
Answer:B

62. The degree of peaked ness or flatness of a unimodel distribution is called:

A. Skewness
B. Symmetry
C. Dispersion
D. Kurtosis
Answer:D

63. In a mesokurtic or normal distribution, µ4 = 243. The standard deviation is:

A. 81
B. 27
C. 9
D. 3
Answer:D

64. In a symmetrical distribution, Q3 – Q1 = 20, median = 15. Q3 is equal to:

A. 5
B. 15
C. 20
D. 25
Answer:D
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
Answer:A

66. For a symmetrical distribution:

A. ?1 > 0
B. ?1 < 0
C. ?1 = 0
D. ?1 = 3
Answer:C

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
Answer:C

68. Bowley's coefficient of skewness lies between:

A. 0 and 1
B. 1 and +1
C. -1 and 0
D. -2 and +2
Answer:B

69. The value of ?2 can be:

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

70. If the sum of squares of the rank differences of 10 pairs of values is 30, find the correlation
coefficient between them.
A. 0.75
B. 0.82
C. 0.90
D. 0.83
Answer:B

71. In a bivariate sample, the sum of squares of differences between marks of observed values of two
variables is 33 and the rank correlation between them is 0.8. Find the number of pairs of observations:
A. 12
B. 10
C. 15
D. 18
Answer:B

72. In a bivariate distribution, Spearman’s Coefficient of Correlation is -0.25. If the sum of the squares
of various ranks is 150, find out the number of pairs of items:
A. 10
B. 8
C. 9
D. 7
Answer:C

73. The rank correlation coefficient of a debating contest involving 10 participants was calculated as
0.6. However, it was later discovered that the difference in the ranks of some participants was read as
8 instead of 3. Find the correct correlation coefficient:
A. 0.933
B. 0.652
C. 0.854
D. 0.751
Answer:A

74. The regression coefficient of X on Y is:

A. bXY
B. bYX
C. Not Specified
D. none
Answer:A
75. Regression Coefficient of Y on X is:
A. bXY
B. bYX
C. Not Specified
D. none
Answer:B
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
Answer:B
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
Answer:A

78. The coefficient of correlation between the regression coefficients is:

A. Arithmetic Mean
B. Geometric Mean
C. Average
D. none
Answer:B

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
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
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.
Answer:B
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

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

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
Answer:C
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

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
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
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
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
Answer:A
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
Answer:C
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
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
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
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

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

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

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
Answer:C

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

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

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