MCQ TIME SERIES

MCQ 16.1
An orderly set of data arranged in accordance with their time of occurrence is called:
(a) Arithmetic series (b) Harmonic series (c) Geometric series (d) Time series

MCQ 16.2
A time series consists of:
(a) Short-term variations (b) Long-term variations (c) Irregular variations (d) All of the above

MCQ 16.3
The graph of time series is called:
(a) Histogram (b) Straight line (c) Historigram (d) Ogive

MCQ 16.4
Secular trend can be measured by:
(a) Two methods (b) Three methods (c) Four methods (d) Five methods

MCQ 16.5
The secular trend is measured by the method of semi-averages when:
(a) Time series based on yearly values (b) Trend is linear
(c) Time series consists of even number of values (d) None of them

MCQ 16.6
Increase in the number of patients in the hospital due to heat stroke is:
(a) Secular trend (b) Irregular variation (c) Seasonal variation (d) Cyclical variation

MCQ 16.7
The systematic components of time series which follow regular pattern of variations are called:
(a) Signal (b) Noise (c) Additive model (d) Multiplicative model

MCQ 16.8
The unsystematic sequence which follows irregular pattern of variations is called:
(a) Noise (b) Signal (c) Linear (d) Non-linear

MCQ 16.9
In time series seasonal variations can occur within a period of:
(a) Four years (b) Three years (c) One year (d) Nine years

MCQ 16.10
Wheat crops badly damaged on account of rains is:
(a) Cyclical movement (b) Random movement (c) Secular trend (d) Seasonal movement

MCQ 16.11
The method of moving average is used to find the:
(a) Secular trend (b) Seasonal variation (c) Cyclical variation (d) Irregular variation

MCQ 16.12
A complete cycle consists of a period of:
(a) Prosperity and depression (b) Prosperity and recovery
(c) Prosperity and recession (d) Recession and recovery

MCQ 16.13
A complete cycle passes through:
(a) Two stages (b) Three stages (c) Four stages (d) Difficult to tell
MCQ 16.14
Most frequency used mathematical model of a time series is:
(a) Additive model (b) Mixed model (c) Multiplicative model (d) Regression model

MCQ 16.15
A time series consists of:
(a) No mathematical model (b) One mathematical model
(c) Two mathematical models (d) Three mathematical models

MCQ 16.16
In a straight line equation Y = a + bX; a is the:
(a) X-intercept (b) Slope (c) Y-intercept (d) None of them

MCQ 16.17
In a straight line equation Y = a + bX; b is the:
(a) Y-intercept (b) Slope (c) X-intercept (d) Trend

MCQ 16.18
Value of b in the trend line Y = a + bX is:
(a) Always negative (b) Always positive (c) Always zero (d) Both negative and positive

MCQ 16.19
In semi averages method, we decide the data into:
(a) Two parts (b) Two equal parts (c) Three parts (d) Difficult to tell

MCQ 16.20
The sum of squares of residuals is denoted by:

MCQ 16.21
In fitting a straight line, the value of slope b remain unchanged with the change of:
(a) Scale (b) Origin (c) Both (a) and (b) (d) Neither (a) and (b)

MCQ 16.22
If a straight line is fitted to the time series, then:

MCQ 16.23
Moving average method is used for measurement of trend when:
(a) Trend is linear (b) Trend is non linear (c) Trend is curvilinear (d) None of them

MCQ 16.24
When the trend is of exponential type, the moving averages are to be computed by using:
(a) Arithmetic mean (b) Geometric mean (c) Harmonic mean (d) Weighted mean

MCQ 16.25
The long term trend of a time series graph appears to be:
(a) Straight-line (b) Upward (c) Downward (d) Parabolic curve or third degree curve

MCQ 16.26
Indicate which of the following an example of seasonal variations is:
(a) Death rate decreased due to advance in science
(b) The sale of air condition increases during summer
(c) Recovery in business (d) Sudden causes by wars
MCQ 16.27
The most commonly used mathematical method for measuring the trend is:
(a) Moving average method (b) Semi average method
(c) Method of least squares (d) None of them

MCQ 16.28
A trend is the better fitted trend for which the sum of squares of residuals is:
(a) Maximum (b) Minimum (c) Positive (d) Negative

MCQ 16.29
Decomposition of time series is called:
(a) Historigram (b) Analysis of time series (c) Histogram (d) Detrending

MCQ 16.30
The fire in a factory is an example of:
(a) Secular trend (b) Seasonal movements (c) Cyclical variations (d) Irregular variations

MCQ 16.31
Increased demand of admission in the subject of computer in Pakistan is:
(a) Secular trend (b) Cyclical trend (c) Seasonal trend (d) Irregular trend

MCQ 16.32
Damages due to floods, droughts, strikes fires and political disturbances are:
(a) Trend (b) Seasonal (c) Cyclical (d) Irregular

MCQ 16.33
The general pattern of increase or decrease in economics or social phenomena is shown by:
(a) Seasonal trend (b) Cyclical trend (c) Secular trend (d) Irregular trend

MCQ 16.34
In moving average method, we cannot find the trend values of some:
(a) Middle periods (b) End periods (c) Starting periods (d) Between extreme periods

MCQ 16.35
The best fitting trend is one which the sum of squares of residuals is:
(a) Negative (b) Least (c) Zero (d) Maximum

MCQ 16.36
In fitting of a straight line, the value of slope remains unchanged by change of:
(a) Scale (b) Origin (c) Both origin and scale (d) None of them

MCQ 16.37
Depression in business is:
(a) Secular trend (b) Cyclical (c) Seasonal (d) Irregular

MCQ 16.38
In fitting of straight line =0
(a) All the observed Y values lie on the line
(b) All the Y values are greater than corresponding values
(c) All the Y values are positive
(d) None of them
MCQ 16.39
Semi-averages method is used for measurement of trend when:
(a) Trend is linear (b) Observed data contains yearly values
(c) The given time series contains odd number of values (d) None of them

MCQ 16.40
Moving-averages:
(a) Give the trend in a straight line (b) Measure the seasonal variations
(c) Smooth-out the time series (d) None of them

MCQ 16.41
The rise and fall of a time series over periods longer than one year is called:
(a) Secular trend (b) Seasonal variation (c) Cyclical variation (d) Irregular variation

MCQ 16.42
A time series has:
(a) Two components (b) Three components (c) Four components (d) Five components

MCQ 16.43
The multiplicative time series model is:
(a) Y = T + S + C + I (b) Y = TSCI (c) Y = a + bX (d) Y = a + bX + cX2

MCQ 16.44
The additive model of the time series is:
(a) Y = T + S + C + I (b) Y = TSCI (c) Y = a + bX (d) Y = a + bX + cX2

MCQ 16.45
The difference between the actual value of the time series and the forecasted value is called:
(a) Residual (b) Sum of variation (c) Sum of squares of residual (d) All of the above

MCQ 16.46
A pattern that is repeated throughout a time series and has a recurrence period of at most one year is called:
(a) Cyclical variation (b) Irregular variation (c) Seasonal variation (d) Long term variation

MCQ 16.47
A business cycle has:
(a) One stage (b) Two stages (c) Three stages (d) Four stages

MCQ 16.48
When the production of a thing is maximum, this stage is called:
(a) Boom (b) Recovery (c) Recession (d) Depression

MCQ 16.49
When the production of a thing is minimum, this stage is called:
(a) Prosperity (b) Recession (c) Recovery (d) Depression

MCQ 16.50
When the production of thing is increasing towards prosperity, this stage is called as:
(a) Recession (b) Recovery (c) Boom (d) Depression

MCQ 16.51
When the production of thing is decreasing, this stage is called:
(a) Recession (b) Recovery (c) Prosperity (d) Depression
MCQ 16.52
The straight line is fitted to the time series when the movements in the time series are:
(a) Nonlinear (b) Linear (c) Irregular (d) Upward

MCQ 16.53
If an annual time series consisting of even number of years is coded, then each coded interval is equal to:
(a) Half year (b) One year (c) Both (a) and (b) (d) Two years

MCQ 16.54
A second degree parabola has:
(a) One constant (b) Two constant (c) Three constant (d) No constant

MCQ 16.55
The normal equations in fitting a second degree parabola are:
(a) Two (b) Three (c) Four (d) Five

MCQ 16.56
The second degree parabola is fitted to the time series when the variations are:
(a) Linear (b) Nonlinear (c) Random (d) Downward

MCQ 16.57
In fitting a second degree parabola, the value of c is not affected with the change of :
(a) Scale (b) Origin (c) Both (a) and (b) (d) Neither (a) and (b)

MCQ 16.58
For odd number of year, formula to code the values of X by taking origin at centre is:
(a) X = year – average of years (b) X = year – first year
(c) X = year – last year (d) X = year – ½ average of years

MCQ 16.59
For even number of years when origin is in the centre and the unit of X being one year, then X can be coded
as:
(a) X = (year – average of years)/2 (b) X = year – average of years
(c) X = year – 0.5 average of years (d) X = average of years – year

MCQ 16.60
For even number of years when origin is in the centre and the unit of X being half year, then X can be coded
as:
(a) X = year – average of years (b) X = 2(year – average of years)
(c) X = (year – average year)/2 (d) X = year – ½ average of years

MCQ 16.61
In semi averages method, if the number of values is odd then we drop:
(a) First value (b) Last value (c) Middle value (d) Middle two values

MCQ 16.62
The trend values in freehand curve method are obtained by:
(a) Equation of straight line (b) Graph
(c) Second degree parabola (d) All of the above

MCQ 16.63
∑X = ∑X3 = 0, if origin is:
(a) At the end of time period (b) Any where
(c) At the middle of time period (d) At the beginning of time period
 MCQ INDEX NUMBERS
MCQ No 5.1
An index number is called a simple index when it is computed from:
(a) Single variable (b) Bi-variable (c) Multiple variables (d) None of them

MCQ No 5.2
Index numbers are expressed in:
(a) Ratios (b) Squares (c) Percentages (d) Combinations

MCQ No 5.3
If all the values are of equal importance, the index numbers are called:
(a) Weighted (b) Unweighted (c) Composite (d) Value index

MCQ No 5.4
Index numbers can be used for:
(a) Forecasting (b) Fixed prices (c) Different prices (d) Constant prices

MCQ No 5.5
Index for base period is always taken as:
(a) 100 (b) One (c) 200 (d) Zero

MCQ No 5.6
When the prices of rice are to be compared, we compute:
(a) Volume index (b) Value index (c) Price index (d) Aggregative index

MCQ No 5.7
When index number is calculated for several variables, it is called:
(a) Composite index (b) Whole sale price index (c) Volume index (d) Simple index

MCQ No 5.8
How many types are used for the calculation of index numbers:
(a) 2 (b) 3 (c) 4 (d) 5

MCQ No 5.9
In chain base method, the base period is:
(a) Fixed (b) Not fixed (c) Constant (d) Zero

MCQ No 5.10
Which formula is used in chain indices?

MCQ No 5.11
Price relatives are a percentage ratio of current year price and:
(a) Base year quantity (b) Previous year quantity (c) Base year price (d) Current year quantity

MCQ No 5.12
Indices calculated by the chain base method are free from:
(a) Seasonal variations (b) Errors (c) Percentages (d) Ratios

MCQ No 5.13
The chain base indices are not suitable for:
(a) Long range comparisons (b) Short range comparisons (c) Percentages (d) Ratios
MCQ No 5.14
An index number that can serve many purposes is called:
(a) General purpose index (b) Special purpose index
(c) Cost of living index (d) None of them

MCQ No 5.15
Another name of consumer's price index number is:
(a) Whole-sale price index number (b) Cost of living index
(c) Sensitive (d) Composite

MCQ No 5.16
Consumer price index indicates:
(a) Rise (b) Fall (c) Both (a) and (b) (d) Neither (a) and (b)

MCQ No 5.17
Purchasing power of money can be accessed through:
(a) Simple index (b) Fisher’s index (c) Consumer price index (d) Volume index

MCQ No 5.18
Cost of living at two different cities can be compared with the help of:
(a) Value index (b) Consumer price index (c) Volume index (d) Un-weighted index

MCQ No 5.19
Consumer price index numbers are obtained by:
(a) Laspeyre's formula (b) Fisher ideal formula
(c) Marshall Edgeworth formula (d) Paasche's formula

MCQ No 5.20
Laspeyre's index = 110, Paasche's index = 108, then Fisher's Ideal index is equal to:
(a) 110 (b) 108 (c) 100 (d) 109

MCQ No 5.21
Most commonly used index number is:
(a) Volume index number (b) Value index number
(c) Price index number (d) Simple index number

MCQ No 5.22
For consumer price index, price quotations are collected from:
(a) Fair price shops (b) Government depots (c) Retailers (d) Whole-sale dealers

MCQ No 5.23
Price relatives computed by chain base method are called:
(a) Price relatives (b) Chain indices (c) Link relatives (d) None of them

MCQ No 5.24
Consumer price index are obtained by:
(a) Paasche's formula (b) Fisher's ideal formula
(c) Marshall Edgeworth formula (d) Family budget method formula

MCQ No 5.25
The aggregative expenditure method and family budget method always give:
(a) Different results (b) Approximate results (c) Same results (d) None of them
MCQ No 5.26
In fixed base method, the base period should be:
(a) For away (b) Abnormal (c) Unreliable (d) Normal

MCQ No 5.27
If all the values are not of equal importance the index number is called:
(a) Simple (b) Unweighted (c) Weighted (d) None

MCQ No 5.28
Which of the following formula satisfy the time reversal test?

MCQ No 5.29
When the price of a year is. divided by the price of a particular year we get:
(a) Simple relative (b) Link relative (c) (a) and (b) both (d) None of them

MCQ No 5.30
When the price of a divided by the price of the preceding year, we, get:
(a) Value index (b) Link relative (c) Simple relative (d) None of them

MCQ No 5.31
The most appropriate average in averaging the price relatives is:
(a) Median (b) Harmonic mean (c) Arithmetic mean (d) Geometric mean

MCQ No 5.32
In constructing index number geometric mean relatives are:
(a) Non-reversible (b) Reciprocal (c) Reversible (d) None of them

MCQ No 5.33
The general purchasing power of the currency of a country is determined by:
(a) Retail price index (b) Volume index (c) Composite index (d) Whole-sale price index

MCQ No 5.34
What type of index number can help the government to formulate its price policies and to take
appropriate economic measures to control prices:
(a) Whole sale price index (b) Consumer's price (c) Quantity (d) None of them

MCQ No 5.35
The most suitable average in chain base method is:
(a) Arithmetic mean (b) Median (c) Mode (d) Geometric mean

MCQ No 5.36
Base year quantities weights are used in:
(a) Laspeyre's method (b) Paasche's method (c) Fisher's ideal method (d) Difficult to tell

MCQ No 5.37
Chain process is used to make comparisons of price index numbers in:
(a) Price relative (b) Link relative (c) Simple relative (d) None of the above

MCQ No 5.38
In the computation of consumer price index numbers, we use:
(a) Aggregate expenditure method (b) Family budget method
(c) Chain base method (d) Both (a) and (b)
MCQ No 5.39
The Federal Bureau of Statistics prepares:
(a) The wholesale price index (b) The consumer price index
(c) The sensitive price indicator (d) All of the above

MCQ No 5.40
While computing a weighted index, the current period quantities are used in the:
(a) Laspeyre's method· (b) Paasche's method
(c) Marshall Edgeworth method (d) Fisher's ideal method

MCQ No 5.41
The best method to measure the relative change in prices of commodities is:
(a) Quantity index number (b) Value index number
(c) Volume index number (d) Price index number

MCQ No 5.42
When the base year values are used as weights, the weighted average of relatives price index
number is the same as the:
(a) Laspeyre's index (b) Paasche's index (c) Simple aggregative index (d) Quantity index

MCQ No 5.43
To measure the relative change in purchasing a specified basket of goods and services between two
periods for a certain locality for fixed income group of people, we can use:
(a) Consumer price index (b) Paasche's price index (c) Cost of living index (d) Both (a) and (c)

MCQ No 5.44
Fisher's ideal index number is the geometric mean of the:
(a) Laspeyre's and Marshall Edgeworth indices
(b) Laspeyre's and Paasche's indices
(c) Paasche's and Marshal Edgeworth indices (d) all of the above
(d) All of the above

MCQ No 5.45
A number that measures a relative change in a single variable with respect to abase.is called:
(a) Good index number (b) Composite index number
(c) Simple index number (d) Quantity index number

MCQ No 5.46
A number that measures an average relative change in a group of related variables with respect to
A base is called:
(a) Simple index number (b) Composite index number
(c) Price index number (d) Quantity index number

MCQ No 5.47
An index number constructed to measure the relative change in the price of an item or a group of
items is called:
(a) Quantity index number (b) Price index number (c) Volume index number (d) Difficult to tell

MCQ No 5.48
When relative change is measured for a fixed period, it is called:
(a) Chain base method (b) Fixed base method
(c) Simple aggregative method (d) Cost of living Index method
MCQ No 5.49
The ratio of a sum of prices ill current period to the sum of prices ill the base period, expressed as a
percentage is called:
(a) Simple price index number
(b) Simple aggregative price index number
(c) Weighted aggregative price index number
(d) Quantity index number

MCQ No 5.50
An index that measures the average relative change in group of variables keeping in view the relative
importance of the variables is called:
(a) Simple index number (b) Composite index number
(c) Weighted index number (d) Price index number

MCQ No 5.51
Link relative of current year is equal to:

MCQ No 5.52
Simple average of relatives is equal to:

MCQ No 5.53
Paasche's price index number is also called:
(a) Base year weighted (b) Current year weighted
(c) Simple aggregative index (d) Consumer price index

MCQ No 5.54
Laspeyre's price index number is also called:
(a) Base year weighted (b) Current year weighted
(c) Cost of living index (d) Simple aggregative index

MCQ No 5.55
Index number having downward bias is:
(a) Laspeyre's index (b) Paasche’s index
(c) Fisher's ideal index (d) Marshall Edgeworth index

MCQ No 5.56
Index number having upward bias is:
(a) Laspeyre's index (b) Paasche's index (c) Fisher's ideal index (d) Marshal Edgworth index

MCQ No 5.57
Marshall Edgeworth price index was proposed by:
(a) One English economist (b) Two English economist
(c) Three English economist (d) Many English economist
MCQ No 5.58
Index number calculated by Fisher's formula is ideal because it satisfy:
(a) Circular test (b) Factor reversal test (c) Time reversal test (d) All of the above
MCQ No 5.59
The test which is lot obeyed by any of the weighted index numbers unless the weights are constant:
(a) Circular test (b) Time reversal test (c) Factor reversal test (d) None of them
 MCQ of REGRESSION AND CORRELATION

MCQ 14.1
A process by which we estimate the value of dependent variable on the basis of one or more independent
variables is called:
(a) Correlation (b) Regression (c) Residual (d) Slope

MCQ 14.2
The method of least squares dictates that we choose a regression line where the sum of the square of
deviations of the points from the lie is:
(a) Maximum (b) Minimum (c) Zero (d)
Positive

MCQ 14.3
A relationship where the flow of the data points is best represented by a curve is called:
(a) Linear relationship (b) Nonlinear relationship (c) Linear positive (d) Linear negative

MCQ 14.4
All data points falling along a straight line is called:
(a) Linear relationship (b) Non linear relationship (c) Residual (d) Scatter diagram

MCQ 14.5
The value we would predict for the dependent variable when the independent variables are all equal to zero
is called:
(a) Slope (b) Sum of residual (c) Intercept (d) Difficult to tell

MCQ 14.6
The predicted rate of response of the dependent variable to changes in the independent variable is called:
(a) Slope (b) Intercept (c) Error (d) Regression equation

MCQ 14.7
The slope of the regression line of Y on X is also called the:
(a) Correlation coefficient of X on Y (b) Correlation coefficient of Y on X
(c) Regression coefficient of X on Y (d) Regression coefficient of Y on X

MCQ 14.8
In simple linear regression, the numbers of unknown constants are:
(a) One (b) Two (c) Three (d) Four

MCQ 14.9
In simple regression equation, the numbers of variables involved are:
(a) 0 (b) 1 (c) 2 (d) 3

MCQ 14.10
If the value of any regression coefficient is zero, then two variables are:
(a) Qualitative (b) Correlation (c) Dependent (d) Independent

MCQ 14.11
The straight line graph of the linear equation Y = a+ bX, slope will be upward if:
(a) b = 0 (b) b < 0 (c) b > 0 (b) b ≠ 0

MCQ 14.12
The straight line graph of the linear equation Y = a + bX, slope will be downward If:
(a) b > 0 (b) b < 0 (c) b = 0 (d) b ≠ 0
MCQ 14.13
The straight line graph of the linear equation Y = a + bX, slope is horizontal if:
(a) b = 0 (b) b ≠ 0 (c) b = 1 (d) a = b

MCQ 14.14
If regression line of = 5, then value of regression coefficient of Y on X is:
(a) 0 (b) 0.5 (c) 1 (d) 5

MCQ 14.15
If Y = 2 - 0.2X, then the value of Y intercept is equal to:
(a) -0.2 (b) 2 (c) 0.2X (d) All of the above

MCQ 14.16
If one regression coefficient is greater than one, then other will he:
(a) More than one (b) Equal to one (c) Less than one (d) Equal to minus one

MCQ 14.17
To determine the height of a person when his weight is given is:
(a) Correlation problem (b) Association problem (c) Regression problem (d) Qualitative
problem

MCQ 14.18
The dependent variable is also called:
(a) Regression (b) Regressand (c) Continuous variable (d) Independent

MCQ 14.19
The dependent variable is also called:
(a) Regressand variable (b) Predictand variable (c) Explained variable (d) All of these

MCQ 14.20
The independent variable is also called:
(a) Regressor (b) Regressand (c) Predictand (d) Estimated

MCQ 14.21
In the regression equation Y = a+bX, the Y is called:
(a) Independent variable (b) Dependent variable (c) Continuous variable (d) None of the above

MCQ 14.22
In the regression equation X = a + bY, the X is called:
(a) Independent variable (b) Dependent variable (c) Qualitative variable (d) None of the above

MCQ 14.23
In the regression equation Y = a +bX, a is called:
(a) X-intercept (b) Y-intercept (c) Dependent variable (d) None of the above

MCQ 14.24
The regression equation always passes through:
(a) (X, Y) (b) (a, b) (c) ( , ) (d) ( , Y)

MCQ 14.25
The independent variable in a regression line is:
(a) Non-random variable (b) Random variable (c) Qualitative variable (d) None of the above
MCQ 14.26
The graph showing the paired points of (X i, Yi) is called:
(a) Scatter diagram (b) Histogram (c) Historigram (d) Pie diagram

MCQ 14.27
The graph represents the relationship that is:
(a) Linear (b) Non linear (c) Curvilinear (d) No relation

MCQ 14.28
The graph represents the relationship that is.:
(a) Linear positive (b) Linear negative (c) Non-linear (d) Curvilinear

MCQ 14.29
When regression line passes through the origin, then:
(a) Intercept is zero (b) Regression coefficient is zero (c) Correlation is zero (d) Association is zero

MCQ 14.30
When bXY is positive, then byx will be:
(a) Negative (b) Positive (c) Zero (d) One

MCQ 14.31
The correlation coefficient is the_______of two regression coefficients:
(a) Geometric mean (b) Arithmetic mean (c) Harmonic mean (d) Median

MCQ 14.32
When two regression coefficients bear same algebraic signs, then correlation coefficient is:
(a) Positive (b) Negative (c) According to two signs (d) Zero

MCQ 14.33
It is possible that two regression coefficients have:
(a) Opposite signs (b) Same signs (c) No sign (d) Difficult to tell

MCQ 14.34
Regression coefficient is independent of:
(a) Units of measurement (b) Scale and origin (c) Both (a) and (b) (d) None of them

MCQ 14.35
In the regression line Y = a+ bX:
(a) (b) (c) (d)

MCQ 14.36
In the regression line Y = a + bX, the following is always true:
(a) (b) (c) (d)

MCQ 14.37
The purpose of simple linear regression analysis is to:
(a) Predict one variable from another variable
(b) Replace points on a scatter diagram by a straight-line
(c) Measure the degree to which two variables are linearly associated
(d) Obtain the expected value of the independent random variable for a given value of the dependent
variable
MCQ 14.38
The sum of the difference between the actual values of Y and its values obtained from the fitted
regression line is always:
(a) Zero (b) Positive (c) Negative (d) Minimum

MCQ 14.39
If all the actual and estimated values of Y are same on the regression line, the sum of squares of
error will be:
(a) Zero (b) Minimum (c) Maximum (d) Unknown

MCQ 14.40

(a) Residual (b) Difference between independent and dependent variables

(c) Difference between slope and intercept (d) Sum of residual

MCQ 14.41
A measure of the strength of the linear relationship that exists between two variables is called:
(a) Slope (b) Intercept (c) Correlation coefficient (d) Regression
equation

MCQ 14.42
When the ratio of variations in the related variables is constant, it is called:
(a) Linear correlation (b) Nonlinear correlation (c) Positive correlation (d) Negative correlation

MCQ 14.43
If both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will
be:
(a) Positive (b) Negative (c) Zero (d) One

MCQ 14.44
If the points on the scatter diagram indicate that as one variable increases the other variable tends to
decrease the value of r will be:
(a) Perfect positive (b) Perfect negative (c) Negative (d) Zero

MCQ 14.45
If the points on the scatter diagram show no tendency either to increase together or decrease together
the value of r will be close to:
(a) -1 (b) +1 (c) 0.5 (d) 0

MCQ 14.46
If one item is fixed and unchangeable and the other item varies, the correlation coefficient will be:
(a) Positive (b) Negative (c) Zero (d) Undecided

MCQ 14.47
In scatter diagram, if most of the points lie in the first and third quadrants, then coefficient of
correlation is:
(a) Negative (b) Positive (c) Zero (d) All of the above

MCQ 14.48
If the two series move in reverse directions and the variations in their values are always
proportionate, it is said to be:
(a) Negative correlation (b) Positive correlation
(c) Perfect negative correlation (d) Perfect positive correlation
MCQ 14.49
If both the series move in the same direction and the variations are in a fixed proportion, correlation
between them is said to be:
(a) Perfect correlation (c) Linear correlation
(c) Nonlinear correlation (d) Perfect positive correlation

MCQ 14.50
The value of the coefficient of correlation r lies between:
(a) 0 and 1 (b) -1 and 0 (c) -1 and +1 (d) -0.5 and +0.5

MCQ 14.51
If X is measured in yours and Y is measured in minutes, then correlation coefficient has the unit:
(a) Hours (b) Minutes (c) Both (a) and (b) (d) No unit

MCQ 14.52
The range of regressioin coefficient is:
(a) -1 to +1 (b) 0 to 1 (c) -∞ to +∞ (d) 0 to ∞

MCQ 14.53
The signs of regression coefficients and correlation coefficient are always:
(a) Different (b) Same (c) Positive (d) Negative

MCQ 14.54
The arithmetic mean of the two regression coefficients is greater than or equal to:
(a) -1 (b) +1 (c) 0 (d) r

MCQ 14.55
In simple linear regression model Y = α + βX + ε where α and β are called:
(a) Estimates (b) Parameters (c) Random errors (d) Variables

MCQ 14.56
Negative regression coefficient indicates that the movement of the variables are in:
(a) Same direction (b) Opposite direction (c) Both (a) and (b) (d) Difficult to tell

MCQ 14.57
Positive regression coefficient indicates that the movement of the variables are in:
(a) Same direction (b) Opposite direction (c) Upward direction (d) Downward direction

MCQ 14.58
If the value of regression coefficient is zero, then the two variable are called:
(a) Independent (b) Dependent (c) Both (a) and (b) (d) Difficult to tell

MCQ 14.59
The term regression was used by:
(a) Newton (b) Pearson (c) Spearman (d) Galton

MCQ 14.60
In the regression equation Y = a + bX, b is called:
(a) Slope (b) Regression coefficient (c) Intercept (d) Both (a) and (b)

MCQ 14.61
When the two regression lines are parallel to each other, then their slopes are:
(a) Zero (b) Different (c) Same (d) Positive
MCQ 14.62
The measure of change in dependent variable corresponding to an unit change in independent
variable is called:
(a) Slope (b) Regression coefficient (c) Both (a) and (b) (d) Neither (a) and (b)

MCQ 14.63
In correlation problem both variables are:
(a) Equal (b) Unknown (c) Fixed (d) Random

MCQ 14.64
In the regression equation Y = a + bX, where a and b are called:
(a) Constants (b) Estimates (c) Parameters (d) Both (a) and (b)

MCQ 14.65
If byx = bxy = 1 and Sx = Sy, then r will be:
(a) 0 (b) -1 (c) 1 (d) Difficult to calculate

MCQ 14.66
The correlation coefficient between X and -X is:
(a) 0 (b) 0.5 (c) 1 (d) -1

MCQ 14.67
If byx = bxy = rxy, then:
(a) Sx ≠ Sy (b) Sx = Sy (c) Sx > Sy (d) Sx < Sy

MCQ 14.68
If rxy = 0.4, then r(2x, 2y) is equal to:
(a) 0.4 (b) 0.8 (c) 0 (d) 1

MCQ 14.69
rxy is equal to:
(a) 0 (b) -1 (c) 1 (d) 0.5

MCQ 14.70
If rxy = 0.75, then correlation coefficient between u = 1.5X and v = 2Y is:
(a) 0 (b) 0.75 (c) -0.75 (d) 1.5

MCQ 14.71
If byx = -2 and rxy= -1, then bxy is equal to:
(a) -1 (b) -2 (c) 0.5 (d) -0.5

MCQ 14.72
If byx = 1.6 and bxy = 0.4, then rxy will be:
(a) 0.4 (b) 0.64 (c) 0.8 (d) -0.8

MCQ 14.73
If byx = -0.8 and bxy = -0.2, then ryx is equal to:
(a) -0.2 (b) -0.4 (c) 0.4 (d) -0.8

MCQ 14.74
If = 6 – X, then r will be:
(a) 0 (b) 1 (c) -1 (d) Both (b) and (c)
MCQ 14.75
If = X + 10, then r equal to:
(a) 1 (b) -1 (c) 1/2 (d) Difficult to tell

MCQ 14.76
If Y = -10X and X = -0.1Y, then r is equal to:
(a) 0.1 (b) 1 (c) -1 (d) 10

MCQ 14.77
If the figure +1 signifies perfect positive correlation and the figure -1 signifies a perfect negative
correlation, then the figure 0 signifies:
(a) A perfect correlation (b) Uncorrelated variables
(c) Not significant (d) Weak correlation

MCQ 14.78
A perfect positive correlation is signified by:
(a) 0 (b) -1 (c) +1 (d) -1 to +1

MCQ 14.79
If a statistics professor tells his class: "All those who got 100 on the statistics test got 20 on the
mathematics test, and all those that got 100 on the mathematics test got 20 on the statistics test", he
is saying that the correlation between the statistics test and the mathematics test is:
(a) Negative (b) Positive (c) Zero (d) Difficult to tell

MCQ 14.80
If is zero, the correlation is:
(a) Weak negative (b) High positive (c) High negative (d) None of the preceding

MCQ 14.81
If rxy = 1, then:
(a) byx = bxy (b) byx > bxy (c) byx < bxy (d) byx . bxy = 1

MCQ 14.82
The relation between the regression coefficient b yx and correlation coefficient r is:

MCQ 14.83
The relation between the regression coefficient b xy and correlation coefficient r is:

MCQ 14.84
If the sum of the product of the deviation of X and Y from their means is zero, the correlation
coefficient between X and Y is:
(a) Zero (b) Maximum (c) Minimum (d) Undecided

MCQ 14.85
If the coefficient of correlation between the variables X and Y is r, the coefficient of correlation
between X2 and Y2 is:
(a) -1 (b) 1 (c) r (d) r2

MCQ 14.86
If rxy = 0.75, then rxy will be:
(a) 0.25 (b) 0.50 (c) 0.75 (d) -0.75
MCQ 14.87
If , then byx is equal to:
(a) Positive (b) Negative (c) Zero (d) One

MCQ 14.88
If , then intercept a is equal to:
(a) 0 (b) 1 (c) -1 to +1 (d) 0 to 1

MCQ 14.89
:
(a) Less than zero (b) Greater than zero (c) Equal to zero (d) Not equal to zero

MCQ 14.90
When rxy < 0, then byx and bxy will be:
(a) Zero (b) Not equal to zero (c) Less than zero (d) Greater than zero

MCQ 14.91
When rxy > 0, then byx and bxy are both:
(a) 0 (b) < 0 (c) > 0 (d) < 1

MCQ 14.92
If rxy = 0, then:
(a) byx = 0 (b) bxy = 0 (c) Both (a) and (b) (d) byx ≠ bxy

MCQ 14.93
If bxy = 0.20 and rxy = 0.50, then byx is equal to:
(a) 0.20 (b) 0.25 (c) 0.50 (d) 1.25

MCQ 14.94
A regression model may be:
(a) Linear (b) Non-linear (c) Both (a) and (b) (d) Neither (a)
and (b)

MCQ 14.95
If r is negative, we know that:
(a)
(b)
(c)
(d)
 MCQ NORMAL DISTRIBUTION
MCQ 10.1
The range of normal distribution is:
(a) 0 to n (b) 0 to ∞ (c) -1 to +1 (d) -∞ to +∞

MCQ 10.2
In normal distribution:
(a) Mean = Median = Mode (b) Mean < Median < Mode
(c) Mean> Median > Mode (d) Mean ≠ Median ≠ Mode

MCQ 10.3
Which of the following is true for the normal curve:
(a) Symmetrical (b) Unimodel (c) Bell-shaped (d) All of the above

MCQ 10.4
In a normal curve, the ordinate is highest at:
(a) Mean (b) Variance (b) Standard deviation (d) Q1

MCQ 10.5
The parameters of the normal distribution are:
(a) µ and σ2 (b) µ and σ (c) np and nq (d) n and p

MCQ 10.6
The shape of the normal curve depends upon the value of:
(a) Standard deviation (b) Q1 (c) Mean deviation (d) Quartile deviation

MCQ 10.7
The normal distribution is a proper probability distribution of a continuous random variable, the total area
under the curve f(x) is:
(a) Equal to one (b) Less than one (c) More than one (d) Between -1 and +1

MCQ 10.8
In a normal probability distribution of a continuous random variable, the value of standard deviation is:
(a) Zero (b) Less than zero (c) Greater than zero (d) None of the above

MCQ 10.9
In a normal curve, the highest point on the curve occurs at the mean, µ, which is also the:
(a) Median and mode (b) Geometric mean and harmonic mean
(c) Lower and upper quartiles (d) Variance and standard deviation

MCQ 10.10
The normal curve is symmetrical and for symmetrical distribution, the values of all odd order moments
about mean will always be:
(a) 1 (b) 0.5 (c) 0.25 (d) 0

MCQ 10.11
If , the points of inflection of normal distribution are:
(a) (b) (c) (d)

MCQ 10.12
In normal probability distribution for a continuous random variable, the value of a mean deviation is
approximately equal to:
(a) 2/3 (b) 2/3 σ (c) 4/5 (d) 4/5 σ
MCQ 10.13
In a normal distribution whose mean is land standard deviation 0, the value 4 quartile deviation is
approximately:
(a) 4/5 (b) 4/5 σ (c) 2/3 σ (d) 2/3

MCQ 10.14
In a normal distribution, the lower and upper quartiles are equidistant from the mean and are at a distance of:
(a) 0.7979 (b) 0.7979 σ (c) 0.6745 (d) 0.6745 σ

MCQ 10.15
The value of e is approximately equal to:
(a) 2.7183 (b) 2.1783 (c) 2.8173 (d) 2.1416

MCQ 10.16
The value of π is approximately equal to:
(a) 3.4116 (b) 3.1416 (c) 3.1614 (d) 3.6416

MCQ 10.17
If , the standard normal variate is distributed as:
(a) (b) (c) (d)

MCQ 10.18
The coefficient of skewness of a normal distribution is:
(a) Positive (b) Negative (c) Zero (d) Three

MCQ 10.19
The total area of the normal probability density function is equal to:
(a) 0 (b) 0.5 (c) 1 (d) 0.25

MCQ 10.20
In a standard normal distribution, the value of mode is:
(a) Equal to zero (b) Less than zero (c) Greater than zero (d) Exactly one

MCQ 10.21
The normal probability density function curve is symmetrical about the mean, µ, i.e. the area to the right of
the mean is the same as the area to the left of the mean. This means that P(X<µ) =P(X>µ) is equal to:
(a) 0 (b) 1 (c) 0.5 (d) 0.25

MCQ 10.22
The skewness and kurtosis of the normal distribution are respectively:
(a) Zero and zero (b) Zero and one (c) One and zero (d) One and one

MCQ 10.23
In a normal curve µ ± 0.6745σ covers:
(a) 50% area (b) 68.27% area (c) 95.45% area (d) 99.73% area

MCQ 10.24
The lower and upper quartiles for a standardized normal variate are respectively:
(a) -0.6745σ and 0.6745σ (b) -0.6745 σ and 0.6745
(c) 0.7979σ and 0.7979σ (d) -0.7979 and 0.7979

MCQ 10.25
The maximum ordinate of a normal curve is at:
(a) X = µ (b) X = µ + σ (c) X = µ - 2σ (d) X = σ2
MCQ 10.26
The value of the standard deviation σ of a normal distribution is always:
(a) Equal to zero (b) Greater than zero (c) Less than zero (d) Equal to 0.5

MCQ 10.27
If X~N(100, 64), then standard deviation σ is:
(a) 100 (b) 64 (c) 8 (d) 100 - 64 = 36

MCQ 10.28
If , the coefficient of variation is equal to:
(a) Zero (b) One (c) Infinity (d) Hundred percent

MCQ 10.29
The points of inflection of the standard normal distribution lie at:
(a) -1 and 0 (b) 0 and 1 (c) -1 and +1 (d) µ and σ

MCQ 10.30
If , then µ4 is equal to:
(a) 0 (b) 1 (c) 3 (d) σ4

MCQ 10.31
The value of second moment about the mean in a normal distribution is 5. The fourth moment about
the mean in the distribution is:
(a) 5 (b) 15 (c) 25 (d) 75

MCQ 10.32
If X is a normal random variable having mean µ, then E|X - µ| is equal to:
(a) Variance (b) Standard deviation (c) Quartile deviation (d) Mean deviation

MCQ 10.33
If X is a normal random variable having mean µ, then E(X - µ)2 is equal to:
(a) σ2 (b) σ (c) 3σ4 (d) β1

MCQ 10.34
Which of the following is possible in normal distribution?
(a) σ < 0 (b) σ = 0 (c) σ > 0 (d) σ > n

MCQ 10.35
The range of standard normal distribution is:
(a) 0 to n (b) 0 to ∞ (c) 0 to k (d) -∞ to +∞

MCQ 10.36
In the normal distribution, the value of the maximum ordinate is equal to:

MCQ 10.37
The value of the ordinate at points of inflection of the normal curve is equal to:

MCQ 10.38
If , then β2 is equal to:
(a) 0 (b) 3 (c) 3σ4 (d) σ2
MCQ 10.39
Pearson’s constants for a normal distribution with mean µ and variance σ2 are:
(a) β1=0, β2=0, γ1=0, γ2=0 (b) β1=0, β2=1, γ1=1, γ2=3
(c) β1=0, β2=3, γ1=0, γ2=0 (d) β1=3, β2=0, γ1=0, γ2=0

MCQ 10.40
The value of maximum ordinate in standard normal distribution is equal to:

MCQ 10.41
A random variable X is normally distributed with µ = 70 and σ2 = 25. The third moment about arithmetic
mean is:
(a) Zero (b) Less than zero (c) Greater than zero (d) None of the above

MCQ 10.42
For the standard normal distribution, P(Z > mean) is:
(a) More than 0.5 (b) Less than 0.5 (c) Equal to 0.5 (d) Difficult to tell

MCQ 10.43
Given a standardized normal distribution (with a mean of zero and a standard' deviation of one),
P(Z < variance) is equal to:
(a) 0.8413 (b) 0.3413 (c) 0.1587 (d) 0.5000

MCQ 10.44
The area to the left of (µ+σ) for a normal distribution is approximately equal to:
(a) 0.16 (b) 0.34 (c) 0.50 (d) 0.84

MCQ 10.45
The median of a normal distribution corresponds to a value of Z is:
(a) 0 (b) 1 (c) 0.5 (d) -0.5

MCQ 10. 46
The mean and standard deviation of the standard normal distribution a respectively:
(a) 0 and 1 (b) 1 and 0 (c) µ and σ2 (d) π and e

MCQ 10.47
In a standard normal distribution, the area to the left of Z = 1 is:
(a) 0.6413 (b) 0.7413 (c) 0.8413 (d) 0.3413

MCQ 10.48
The semi-inter quartile range for a standard normal random variable Z is:
(a) 0.6745 (b) 0.6745 σ (c) 0.7979 (d) 0.7979 σ

MCQ 10.49
If , then µ4 is equal to:
(a) 3 (b) 3 σ (c) 3 σ2 (d) 3 σ4

MCQ 10.50
If , then β2 is equal to:
(a) 0 (b) 3 (c) 3 σ4 (d) σ4/3

MCQ 10.51
P(µ-σ < X < µ+σ) is equal to:
(a) 0.5000 (b) 0.6827 (c) 0.9545 (b) 0.9973
MCQ 10.52
In a normal curve µ ± 2σ covers:
(a) 50% area (b) 68.27% area (c) 95.45% area (d) 99.73% area

MCQ 10.53
In X is N(µ, σ2), the percentage of the area contained within the limits µ ± 3σ:
(a) 50% (b) 68.27% (c) 95.45% (d) 99.73%

MCQ 10.54
Most of the area under the normal curve with parameters µ and σ lies between:
(a) µ - 0.5σ and µ + 0.5σ (b) µ - σ and µ + σ
(c) µ - 2σ and µ + 2σ (d) µ - 3σ and µ + 3σ

MCQ 10.55
The probability density function of the standard normal distribution is:

MCQ 10.56
The equation of the normal frequency distribution is:

MCQ 10.57
If X is N(µ,σ2) and if Y =a + bX, then mean and variance of Y are respectively:
(a) µ and σ2 (b) a + µ and bσ2 (c) a + bµ and σ2 (d) a + bµ and b2σ2

MCQ 10.58
For a normal distribution with mean µ and standard deviation σ:
(a) Approximately 5% of values are outside the range (µ - 2σ) to (µ + 2σ)
(b) Approximately 5% of values are greater than (µ + 2σ)
(c) Approximately 5% of values are outside the range (µ - σ) to (µ + σ)
(d) Approximately 5% of values are less than (µ - 3σ)

MCQ 10.59
The normal probability distribution with mean np and variance npq may used to approximate the
binomial distribution if n ≥ 50 and both np and nq are:
(a) Greater than 5 (b) Less than 5 (c) Equal to 5 (d) Difficult to tell

MCQ 10.60
In a normal distribution Q1 = 20 and Q3 = 40, then mean is equal to:
(a) 20 (b) 30 (a) 40 (b) 60

MCQ 10.61
If Z is a standard normal variate, then P(-1.645 ≤ Z ≤ +1.645) is equal to:
(a) 0.90 (b) 0.95 (c) 0.98 (d) 0.99

MCQ 10.62
If Z is a standard normal variate, then P(-2.33 ≤ Z ≤ +2.33) is equal to:
(a) 0.4901 (b) 0.6827 (c) 0.9545 (d) 0.9802

MCQ 10.63
If Z is a standard normal variate, then P(- 2.575 ≤ Z ≤ +2.575) is equal to:
(a) 0.9951 (b) 0.99 (c) 0.4951 (d) 0.4949
MCQ 10.64
If Z is a standard normal variate, then P[ IZI< 1.96] is equal to:
(a) 0.0250 (b) 0.4750 (c) 0.95 (d) 0.9750

MCQ 10.65
For a normal distribution with µ = 10, σ = 2, the probability of a value greater than 10 is:
(a) 0.1915 (b) 0.3085 (c) 0.6915 (d) 0.5000

MCQ 10.66
Given a random variable X which is normally distributed with a mean and variance both equal to 100.
The value of mean deviation is approximately equal to:
(a) 7 (b) 8 (c) 8.5 (d) 9

MCQ 10.67
If X is a normal variate with mean 50 and standard deviation 3. The value of quartile
deviation is approximately equal to:
(a) 1 (b) 1.5 (c) 2 (d) 2.5

MCQ 10.68
In a normal distribution mean is 100 and standard deviation is 10. The values of points of inflection
are:
(a) 100 and 110 (b) 80 and 120 (c) 90 and 110 (d) None of the above

MCQ 10.69
If X is a normal variate with mean 20 and variance 16. The respective values of β1 and β2 are:
(a) 0 and 3 (b) 3 and 1 (c) 0.5 and 1 (d) 3 and 3

MCQ 10.70
If X is N(100; 5), the fourth central moment is:
(a) 65 (b) 75 (c) 85 (d) 100

MCQ 10.71
A normal distribution has the mean µ =200. If 70 percent of the area under the curve lies to the left
of 220, the area to the right of 220 is:
(a) 0.3 (b) 0.5 (c) 0.2 (d) 0.7

MCQ 10.72
Given a normal distribution with µ = 100 and σ2 = 100, the area to the left of 100 is:
(a) One (b) Equal to 0.5 (c) Less than 0.5 (d) Greater than 0.5

MCQ 10.73
If a normal distribution with µ = 200 have P(X > 225) = 0.1587, then P(X < 175) equal to:
(a) 0.3413 (b) 0.8413 (c) 0.1587 (d) 0.5000

MCQ 10.74
A random variable has a normal distribution with the mean µ = 400. If 8 percent of the area under
the curve lies to the left of 500, the area between 400 and 500 is:
(a) 0.5 (b) 0.2 (c) 0.3 (d) Zero
MCQ 10.75
If Y = 5X+ 10 and X is N(10, 25), then mean of Y is:
(a) 50 (b) 60 (c) 70 (d) 135
MCQ 10.76
If X is a normal random variable with mean µ = 50 arid standard deviation σ = 7, if Y = X – 7 then standard
deviation of Y is:
(a) 7 (b) 14 (c) 0 (d) 49