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ca FOUNDATION

STATISTICS
CA FOUNDATION STATISTICS

Dear Student,

Welcome to the World of Knowledge - J.K. Shah Classes !

I have the pleasure of presenting this study material to you. It contains


good number of good problems, selected so carefully from wide-ranging
sources. It covers the problems which will bring in to focus all important
concepts that you need to study in order to fortify yourself for your
examination.

The subject will be taught by eminent professors who are highly


experienced and well-versed with the job.

The coaching is very exhaustive and wholly concept based. The conceptual
explanations are entirely supported by good problems that cover the
past and the problems which peep into the future. Also, the coaching
is very systematic, well - planned and absolutely time bound. For a
change, say good - bye to mechanical learning. I am sure you will feel
that the study is a pleasurable job and not a painful exercise.

I wish you a very happy study time. BEST OF LUCK !

Prof. J.K. Shah.


Chartered Accountant
CA FOUNDATION STATISTICS

INDEX

1 STATISTICAL DESCRIPTION OF DATA


(Introduction to Statistics)
1-69

2 MEASURES OF CENTRAL TENDENCY


(Averages of First Order)
70-114

3 MEASURES OF DISPERSION
(Average of Second Order)
115-153

4 LINEAR CORRELATION & LINEAR


REGRESSION
154-249

5 INDEX NUMBERS 250-300

6 PROBABILITY AND RANDOM


VARIABLE 301-373

7 RANDOM VARIABLE
Theory of Expectation - THEORY
374-399

8 THEORETICAL DISTRIBUTION 400-533

9 Appendix & Logarithm Tables 534-544


CA FOUNDATION STATISTICS

STATISTICAL DESCRIPTION OF DATA


(Introduction to Statistics)

Introduction:

The word “STATISTICS” has its origin from the following:


• Latin - STATUS
• German - STATISTIK
• French - STATISTIQUE
• Italian - STATISTA

Statistics in India
• Kautilya recorded birth and death in Arthashastra during Chandragupta Maurya’s
regime.
• Abul Fazal, during Akbar’s regime, recorded agriculture in the book Ain-i-Akbari.
“STATISTICS” DEFINED


IN SINGULAR SENSE IN PLURAL SENSE
It is defined as the scientific method By Statistics, we mean aggregate
of collecting, presenting, analyzing of facts which are known as
the data and drawing inference from “DATA” (Singular Datum).
the same.

Features of Statistics:
a) Statistics deals with masses and not individuals.

b) Statistics deals with quantitative data . Qualitative data are also to be expressed in
quantitative terms.

c) It is aggregate of facts (plural sense).

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d) It refers to scientific methods of analyzing data.(Singular Sense)

e) It is science as well as an art.

f) Data are affected by multiplicity of causes.

g) Data should be collected in a systematic manner and for a pre-determined purpose.

h) Data should be comparable.

i) All Statistics are Numerical Statements but all Numerical Statements are not
statistics

APPLICATION OF STATISTICS
Statistics is used in
a) Mathematics

b) Economics

c) Accountancy

d) Auditing

e) Business and industry

f) Social Science

g) Medical Sciences & Biology

h) Different Statistical techniques used in Business, Economics and Industry.

i) Management.

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LIMITATIONS OF STATISTICS
i. Statistics does not study qualitative phenomenon directly.

ii. Statistics does not study individuals.

iii. Statistical laws are not exact.

iv. Statistical data are liable to be misused.

v. Statistics results are true on the average sense only. They are not exact

FEW TERMS COMMONLY USED IN STATISTICS.


i. Data : It is a collection of observations, expressed in numerical figures, obtained by
measuring or counting.

ii. Population : It is used to denote the totality of the set of objects under considering.

iii. Sample : A sample is a selected no. of individuals each of which is a member of


the population. It is examined with a view to assessing the characteristics of the
population.

iv. Characteristic : A quality possessed by an individual person, object or item of a


population is called a characteristic e.g. Height, age, nationality, etc.

v. Variable & Attribute : Measurable characteristics which are expressed numerically


in terms of some units are called as variables or variates e.g. age, height, income,
etc. Non-measurable characteristics is a qualitative characteristic which is called as
attribute e.g. sex, marital status, employment status, etc.

vi. Continuous & Discrete Variable : A variable which can assume for its value any real
quantity within a specified interval is a continuous variable e.g height, weight etc
and the variables which can assume only whole numbers are discrete variables
eg :-. number of members in the family, no of accidents etc.

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CLASSWORK SECTION

Related MCQ’s:
1. Which of the following statement is true?
a) Statistics is derived from the French word “Statistik”.
b) Statistics is derived from the Italian word “Statista”.
c) Statistics is derived from the Latin word “Statistique”.
d) None of these

2. The word statistics is used in ______ senses, namely __________ and ________.
a) two, singular, plural b) two, simple, complicated
c) two, single, combined d) none of the above

3. The word statistics refers either _______ information or to a method of dealing


with _______ information.
a) absolute, actual b) quantitative, qualitative
c) real, actual d) none of the above

4. Data can be obtained through a statistical ______.


a) survey b) data c) methods d) none of the above

5. Statistics is considered with:


a) Qualitative information b) Quantitative information
c) Both a) and b) d) Either a) or b)

6. In the development of statistical methods, the greatest contribution is that of:


a) Economists b) Mathematician
c) Scientist d) Businessmen

7. Statistics is applied in
a) Commerce & Industry b) Business Management
c) Economics d) All of the above

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8. Statistics can:
a) prove anything
b) disprove anything
c) neither prove nor disprove anything, is just a tool
d) none of the above

9. Statistics can best be considered as:


a) an art b) science
c) both art as well as science d) neither art not science

10. Which of the following would you regard as discrete variable:


a) height b) weight
c) number of persons in a family d) wages paid to workers

11. The distribution of wage is an example of the frequency distribution of


a) a discrete variable b) an attribute
c) a continuous variable d) either a) or c) above

12. An attribute is:


a) A measurable characteristics b) A quantitative characteristics
c) A qualitative characteristic d) All of the above

13. Annual income of a person is:


a) An attribute b) A continuous variable
c) A discrete variable d) Either b) or c)

14. Height of a person is:


a) An attribute b) A continuous variable
c) A discrete variable d) Either b) or c)

15. Nationality of a student is:


a) A continuous variable b) An attribute
c) A discrete variable d) None of the above

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 A STATISTICAL ENQUIRY PASSES THROUGH THE FOLLOWING PHASES :


1. COLLECTION OF DATA

2. SCRUTINY OF DATA

3. CLASSIFICATION OF DATA

4. PRESENTATION OF DATA

1. COLLECTION OF DATA (DATUM IN SINGULAR)


Data : Data are aggregate of facts i.e. Quantitative information about characteristic
under study.
Types of Data

Primary Data Secondary Data


These data are collected for 1. Secondary Data are numerical
a specific purpose directly information which have been
from the field of enquiry. previously collected as primary data
These are original in nature by some agency for a specific purpose
but are now complied from that
source for use in a different
connection. Sources of Secondary
Data.
i. Publications of Central and
State Governments, of Foreign
Governments, and
international bodies like ILO,
UNO, UNESCO, WHO, etc.
ii. Publications of various
Chambers of Commerce, Trade
Associations, Co-operative
Societies, etc.

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Methods of Collecting Primary Data

Direct Observation Method Mailed Questionnaire Method Interview Method



Direct Personal Interview Indirect Interview Telephonic Interview

(1) DIRECT OBSERVATION METHOD:


It is the best method of data collection, but time consuming, laborious and covers
only a small area.

(2) MAILED QUESTIONNAIRE METHOD:


Under this method, data are collected by means of framing a well drafted and
properly sequenced questionnaire covering all the important aspects of the problem
under study and sending them to the respondents. (Although a wide area can be
covered but non-response is maximum under this method).

(3) INTERVIEW METHOD:


a. Direct Personal Interview Method:
Under this method, the investigator collects information directly from the
respondents. In case of natural calamities like earthquake, cyclone or epidemic
the data can be collected much more quickly and accurately.

b. Indirect Interview Method:


It is used when the respondents can’t be reached directly and the data
is collected from the persons associated with the problems. E.g. in case of
accidents this method is used.
Note : The above two methods are more accurate but not suitable for large
area.

c. Telephonic Interview Method:


It is quick, less expensive and covers largest area. Under this method, the
researcher himself gathers information by contacting the interviewee over the

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phone. It is less consistent compared to the other two methods. Amount of


non –response is maximum under this method.

2. SCRUTINY OF DATA
It means checking the data for accuracy & consistency. Intelligence, patience &
experience is used by scrutinizing the data.

3. CLASSIFICATION OF DATA
Definitions : When the items / individuals are classified, according to some common
non-measurable characteristics processed by them, they are said to form a statistical
class, and when they are classified according to some common measureable
characteristics processed by them, they are said to form a statistical group.

Types of Classifications

Geographical (or) Chronological (or) Qualitative (or) Quantitative(or)


Spatial Temporal or Ordinal Cardinal
i.e. Areawise Time Series i.e.
on the basis of time

Related MCQ’s:
16. A statistical survey may either be ________ purpose or ________ purpose survey.
a) general, specific
b) general, without
c) all, individual
d) none of the above

17. Data are generally obtained from:


a) primary sources
b) secondary sources
c) both primary and secondary sources
d) neither from primary nor from secondary sources

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18. Data originally collected for an investigation are known as:


a) primary data
b) secondary data
c) both primary and secondary data
d) none of the above

19. Secondary data:


a) should never be used
b) should be used after careful scrutiny
c) no scrutiny is required while using it
d) while scrutinizing the only thing to see is who collected it

20. Primary data are:


a) always more reliable compared to secondary data
b) less reliable compared to secondary data
c) depends upon the care with which data have been collected
d) depends upon the agency collecting the data

21. The quickest method to collect primary data is:


a) Personal Interview
b) Indirect Interview
c) Mailed Questionnaire Method
d) Telephonic Interview

22. In Indirect Oral Investigation:


a) Data is not capable of numerical expression
b) Not possible or desirable to approach informant directly
c) Data is collected from the books
d) None of the above

23. Some important sources of secondary data are:
a) International & Government sources
b) International and Primary sources
c) Private and Primary sources
d) Government sources

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24. The data obtained by the internet are:


a) Primary data
b) Secondary data
c) Both a) and b)
d) Neither a) nor b)

25. Which method of collection of data covers the widest area?


a) Direct interview method.
b) Mailed questionnaire method.
c) Telephone interview method.
d) both (b) & (c)

26. In case of a rail accident, the appropriate method of data collection is by :


a) Direct interview
b) Personal interview
c) Indirect interview
d) All of the above

27. The best method to collect data, in case of a natural calamity, is :


a) Personal interview
b) Questionnaire method
c) Indirect interview
d) Direct observation method

28. Classification is the _________ step in tabulation.


a) first b) second
c) last d) none of the above

29. When data are observed __________ the type of classification is known as
chronological classification.
a) for some hours
b) over a period of time
c) seriously
d) none of the above

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30. _________ classification refers to the classification of data according to some


characteristics that can be measured.
a) qualitative
b) subjective
c) quantitative
d) all of the above

31. Classification is the process of arranging data in:


a) different columns
b) different rows
c) grouping of related facts in different classes
d) different columns and rows

32. In chronological classification data are classified on the basis of:


a) attributes
b) class interval
c) locations
d) time

33. Geographical classification means classifications of data according to:


a) time
b) location
c) attributes
d) class intervals

34. The primary rules that should be observed in classification:


I. As far as possible, the class should be of equal width.
II. The classes should be exhaustive.
III. The classes should be un-ambiguously defined.
a) Only I and II
b) Only II and III
c) Only I and III
d) All I, II and III

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Presentation of Data
Presentation of Data

Textual Tabular Graphical

Textual
Textual Presentation : It is in written form. It is simple but dull, monotonous &
comparison is not possible

Tabular
Tabular Presentation : Presentation of data with the help of a statistical table having
rows & columns.

Advantages of Tabulation are as follows:


1. Complicated data can be represented.
2. It is a must for diagrammatic representation.
3. Statistical analysis is not possible without tabulation.
4. It facilitates comparison between rows & columns.

3. DIFFERENT PARTS OF A TABLE


TABLE

TITLE STUB CAPTION BODY BOXHEAD

1. Title : Every Table must be given a suitable title, which usually appears at the top
of the table (below the table number or next to the table number). A title is meant
to describe in brief and concise form the contents of the table and should be self-
explanatory.

2. Stub : Stubs are the headings or designations for the horizontal rows.

3. Captions : Captions are the headings or designations for vertical columns.

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4. Body : The arrangement of the data according to the descriptions given in the captions
(columns) and stubs(rows) forms the body of the table. It contains the numerical
information which is to be presented to the readers and forms the most important
part of the table.

5. Box-head: The entire upper part of the table is known as box-head.

Other Parts :
6. Table Number :

7. Head Note :

8. Foot Note :

9. Source Note

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FORMAT OF A BLANK TABLE


Title
[Head Note or Prefatory Note (if any)]

Foot Note :

Source Note :

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Types of Tabulatio
Types of Tabulation

Simple Complex

Simple Tabulation : In this type the number or measurement of the items are placed
below the headings showing the characteristics.

Complex Tabulation : In this type each numerical figure in the table is the value of
the measurement having the characteristics shown both by the column and the row
headings.

Related MCQ’s
35. The most accurate mode of data presentation is :
a) Diagrammatic method b) Tabular
c) Textual presentation d) None of the above.

36. When the accuracy in presentation is more important than the method of presentation
it is done through:
a) Textual b) Diagrammatic
c) Tabular d) Either b) or c)

37. In tabulation source of the data, if any, is shown in the :


a) Source note b) body
c) stub d) caption

38. A table is a systematical arrangement of statistical data in _________.


a) boarders and boundaries b) lanes and pillars
c) columns and rows d) all of the above

39. The unit of measurement in tabulation is shown in


a) box head b) body c) caption d) stub.

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40. For tabulation, ‘caption’ is :


a) the lower part of the table.
b) the main part of the table.
c) the upper part of the table.
d) the upper part of a table that describes the column and sub-column.

41. The entire upper part of a table is known as :


a) caption b) stub c) box head d) body.

42. ‘Stub’ of a table is the


a) right part of the table describing the columns.
b) left part of the table describing the columns.
c) right part of the table describing the rows
d) left part of the table describing the rows.

43. The heading of a row in a statistical table is known as:


a) stub b) caption c) title d) foot note

44. The best method of presentation of data is :


a) Textual b) Tabular
c) Diagrammatic d) Both b) and c) above

45. In tabulation, source of data, if any, is shown in the:


a) Stub b) Body c) Caption d) Footnote

46. A table has _____ parts.


a) Two b) Three c) Four d) Five

47. The column headings of a table are known as:


a) Body b) Stub c) Box head d) Caption

Diagrammatic Representation of Data


1. Diagrammatic Representation are mainly done by charts (or graphs) and figures.

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2. A chart or graph is inferior to a table or numbers as a method of presenting


data, since one can get only approximate idea from it, but its advantage is that it
emphasizes certain facts and relations more than numbers do.

Advantages :
1. It is more attractive and informative to an ordinary person.

2. A complex problem can sometimes be clarified easily by a diagram.

3. It reveals the hidden facts which are not apparent from the tabular presentation.

4. Two or more sets of values can be compared very easily from a diagram.

5. It shows the relation of the parts to the whole.


Types of Diagrams

Without Frequency With Frequency (Frequency Curves)

1. Line Chart or Line Graph or Line 1. Histogram or Area Diagram


Diagram or Historigram Chart (one (Two dimensional)
dimensional)
2. Bar Diagram or Bar Chart 2. Frequency Polygon
(one dimensional) (Two dimensional)
3. Pie Chart 3. Frequency Curve
(Two dimensional) (Two dimensional)
4. Cumulative Frequency Polygon or
Ogive (Two dimensional)

Each of the Diagram is described below:

Line Diagram :
It is used for time related data (Time series).
When there is wide range of fluctuations, logarithmic or ratio charts are used.

Multiple Line Chart :


It is used for representing 2 or more related series expressed in same units.

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Multiple Axis Chart :


Multiple Axis Chart is used for representing two or more related series expressed in
different units.

Semi-Logarithmic Graph or Ratio Chart :


Semi-Logarithmic Graph or Ratio Chart is a line diagram drawn on a special type
of graph paper which shows the natural scale in the horizontal direction and the
logarithmic or ratio scale in the vertical direction. The semi-log graph is used where
ratios of change are more important than absolute amounts of change.

Bar Diagram
1. Vertical Bar Chart ( or Colum Chart) :
This is generally used to represent a time series data or a data which is classified by
the values of the variable. (Measurable characteristics).

2. Horizontal Bar Chart :


This is used to represent data classified by attributes or data varying over space.
(i.e. non-measurable characteristics).

3. Grouped or Multiple or Compound Bar Chart):


These are used to compare related series.

4. Component /Sub divided Bar Chart:


These are used for representing the data divided into different components

5. Percentage Bars :
Percentag e Bars are particularly useful in statistical work which requires the
portrayal of relative changes.

6. Deviation Bars
Deviation Bars are popularly used for representing net quantities – excess or deficit
i.e. net profit, net loss, net exports or imports, etc. Such bars can have both positive
and negative values. Positive values are shown above the base line and negative
values below it.

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7. Broken Bars
In certain series there may be wide variations in values – some value may be very
small and others very large. In order to gain space for the smaller bars of the series,
larger bars may be broken.

PIE CHART / PIE DIAGRAM / CIRCLED DIAGRAM


This is a very useful diagram to represent data which are divided into a number of
categories. The diagram consists of a circle divided into a number of sectors whose
areas are proportional to the values they represent. Again the areas of the sectors
are proportional to their angles at the centre. Therefore, ultimately the angles of the
different sectors are proportional to the values of different components. The total
value is represented by the full circle. Comparison among the various components
or between a part and the whole of data can be made easily by this diagram.

Example :
Draw a pie chart to represent the following data on the proposed outlay during a
Five-year Plan of a Government :

Items ` (in crores)


Agriculture 12,000
Industry & Minerals 9,000
Irrigation & Power 6,000
Education 8,000
Communication 5,000

Calculations for the angles of the pie chart

Items Outlay (in crores `) Angles (in egrees)


Agriculture 12,000 108
Industry & Minerals 9,000 81
Irrigation & Power 6,000 54
Education 8,000 72
Communication 5,000 45
Total 40,000 360

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Working Note : 40,000 is represented by 3600

1,000 is represented by 360 = 90


40

12,000 is represented by 12 x 9 = 1080

9,000 is represented by 9 x 9 = 810

6,000 is represented by 6 x 9 = 540

8,000 is represented by 8 x 9 = 720

And 5,000 is represented by 5 x 9 = 450

DIAGRAMMATIC/GRAPHICAL REPRESENTATION OF FREQUENCY DISTRIBUTION

1. Histogram or Area Diagram



i) It consists of a set of adjoining vertical rectangles whose widths represent
the class intervals and the heights represent the corresponding frequencies
(for equal class width) and frequency densities (for unequal class width).
Boundaries are plotted along the horizontal axis and the frequencies (or
frequency densities) are plotted along the vertical axis

ii) The area of each rectangle is proportional to the frequency of the corresponding
class.

iii). Mode is calculated graphically from Histogram.

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iv) It helps us to get an idea about the frequency curve and frequency polygon.

v) Comparison among the frequencies can be made for different class intervals.

Example
The monthly profits in rupees of 100 shops are distributed as follows:
Profits per Shop 0-100 100-200 200-300 300-400 400-500 500-600
No. of Shops 12 18 27 20 17 6
Draw the histogram to the data and hence find the modal value.

In the histogram, the top right corner of the highest rectangle is joined by a straight
line to the top right corner of the preceding rectangle. Similarly, top left corner
of the highest rectangle is joined to the top left corner of the following rectangle.
From the point of intersection of these two lines a perpendicular is drawn on the
horizontal axis. The foot of the perpendicular indicates the Mode. This is read from
the horizontal scale and the modal value is found to be 256 (in `) approximately.


Profits (`)
2. Frequency Polygon and Frequency Curve
i) In this method, the frequency of each class is plotted against the mid-value
of the corresponding class. The points thus obtained are joined successively
by straight lines. The polygon is then completed by joining two end-points to
the mid-values of two empty classes assumed in either side of the frequency
distribution.

ii) Frequency polygon can be obtained from the histogram by joining the successive

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mid-points of the top of the rectangles which constitute the histogram and the
polygon is completed in the same manner as before.

iii) If in a frequency distribution the widths of the classes are reduced, then the
number of classes will increase. As a result the vertices of a frequency polygon
will come very close to each other. In that case, if we join the points by smooth
free hand line instead of straight lines, a smooth curve is obtained which is
known as a Frequency Curve.

iv) Frequency Curve is a limiting curve case of frequency polygon.

3. Cumulative Frequency Polygon / Ogive Curve


1. It is a graphical representation of cumulative frequency distribution.
2. Median and all other partition values are calculated from ogives.
3. There are two types of ogives (i) Less Than Ogive (ii) More Than Ogive.
4. IN LESS THAN OGIVE LESS THAN CUMULATIVE FREQUENCIES ARE USED.
AND IN CASE OF MORE THAN OGIVE, MORE THAN CUMULATIVE FREQUENCIES
ARE USED AND the OGIVE curve LOOKS LIKE ELONGATED “S”. These are also
known as “S” Curve.

Example
Draw the cumulative frequency diagram (both more-than and less-than ogive) of
the following frequency distribution and locate graphically the Median:
Marks-Group 0-10 10-20 20-30 30-40 40-50 50-60 60-70 Total
No. of Students 4 8 11 15 12 6 3 59

Calculation for Cumulative Frequencies

Class Boundary Cumulative Frequency


Less than More than
0 0 59
10 4 55
20 12 47
30 23 36
40 38 21
50 50 9

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60 56 3
70 59 0

Class Boundary

Less than and More than ogive of a frequency distribution


From the graph the median is found to be 34.5.

4. Other Frequency Curves


1. Bell Shaped (Symmetrical Curve):
The most commonly used frequency curve use for the distribution of height, weight,
profit, etc.
i. It is the limiting form of histogram and frequency polygon
ii. The area under the curve is taken to be unity.
iii. It enables us to understand symmetry of the distribution.

TYPES OF FREQUENCY CURVES


1. Bell Shaped Cureve

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2. U Shaped Curve
In this curve, the frequency is minimum at the central part, and slowly but steadily
it reaches to two extremities. The distribution of people travelling on streets will be
exhibited through this kind of curves.


3. J Shaped Curve:
The J Shaped Curve starts with the minimum frequency and then gradually reaches
its maximum frequency at the other extremity. The distribution of commuters in a
particular time interval will be exhibited through this kind of curves.

Diagram

4. Asymmetrical Curves
(A) In case of symmetrical curves or bell shaped curves the
(i) Mean (M) = Median (Me) = Mode (Mo)
ii) Skewness = 0

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(B) In case of Asymmetrical curves Mean, Median & Mode are unequal and accordingly
skewness 0
Asymmetrical Curves

Positively Skewed Negatively Skewed


(Mean > Median > Mode) (Mean < Median < Mode)
(i) Frequency curve as a longer (i) Frequency curve as a longer
tail to the right tail to the Left

Related MCQ’s :
48. In a two-dimensional diagram:
a) only height is considered
b) only width is considered
c) both height and width is considered
d) height, width and thickness are considered

49. Graph is a :
a) Line diagram b) Bar diagram
c) Pie diagram d) Pictogram.

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50. The chart that uses logarithm of the variable is known as :


a) Multiple line chart b) Ratio chart
c) Line chart d) Component line chart.

51. Multiple axis line chart is considered when


a) the units of the variables are different.
b) there is more than one time series
c) both a) and b) above
d) either a) or b) above

52. The graphical representation of a cumulative frequency distribution is called


a) histogram b) ogive
c) both a) and b) above d) none of the above

53. Ogive is a
a) line diagram b) bar diagram
c) both a) and b) above d) none of these

54. The most common form of diagrammatic representation of a grouped frequency


distribution is :
a) ogive b) histogram
c) frequency polygon d) none of the above

55. Frequency density is used in the construction of


a) histogram b) frequency polygon
c) ogive d) none of the above

56. When the width of all classes is same, frequency polygon has not the same area as
the Histogram :
a) true b) false
c) both a) and b) above d) none of the above

57. Diagrammatic representation of the cumulative frequency distribution is :


a) frequency polygon b) ogive
c) histogram d) none of the above

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58. A comparison among the class frequencies is possible in


a) ogive b) histogram
c) frequency polygon d) either b) or c) above

59. Mode is found graphically by :


a) frequency polygon b) ogive
c) histogram d) none of the above

60. Frequency curve is a limiting form of


a) frequency polygon b) histogram
c) either a) or b) above d) both a) and b) above

61. The breadth of the rectangle is equal to the length of the class-interval in
a) ogive b) histogram
c) both a) and b) above d) none of these.

62. Consecutive rectangles in a Histogram have no space in between them.


a) true b) false
c) both a) and b) above d) none of the above

63. Median of a distribution can be obtained from


a) histogram b) frequency polygon
c) Ogives d) none of the above

64. The curve obtained by joining the points, whose x-coordinates are the upper limits
of the class-intervals and y-coordinates are corresponding cumulative frequencies
is called
a) ogive b) frequency polygon
c) histogram d) frequency curve

65. The purpose served by diagrams and charts is:


a) To avoid tabulation b) To avoid textual form
c) Simple presentation of data d) All of the above

66. Less than type and more than type ogives meet at a point known as:
a) Mean b) Median c) Mode d) Quartile

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CA FOUNDATION STATISTICS

67. If we plot less than and more than type frequency distribution, then the graph
plotted is:
a) Frequency Curve b) Histogram
c) Ogive d) None of these

68. From which graphical representation, we can calculate partition values?


a) Lorenz Curve b) Ogive Curve
c) Histogram d) None of these

69. When the two curves of ogive intersect, the point of intersection provides:
a) First Quartile b) Third Quartile
c) Second Quartile d) None of these

70. Divided bar chart is good for:


a) Comparing various components of a variable
b) Relating the different components to the variable
c) Both a) and b) above
d) Neither a) nor b) above

71. In order to compare two or more related series, we consider:


a) Multiple Bar Chart b) Grouped Bar Chart
c) Both a) and b) d) None of them

72. An area diagram is:


a) Ogive b) Histogram c) Frequency Polygon d) None of these

73. Which of the following is a two dimensional figure?


a) Line Diagram b) Pie Diagram
c) Squares d) Both b & C

74. Arrange the dimensions of Bar Diagram, Cube Diagram, Pie Diagram in sequence.
a) 1, 3, 2 b) 2, 1, 3 c) 2, 3, 1 d) 3, 2, 1

75. The most appropriate diagram to represent the data relating to the monthly
expenditure on different items by a family is:
a) Pie Diagram b) Line Diagram c) Histogram d) Frequency Polygon

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FREQUENCY DISTRIBUTION
1. Tabular representation of statistical data is usually made in ascending order of
magnitude relating to measurable characteristics according to individual value or
group of values.

2. There are two types of frequency distribution


i. For discrete variable it is known as simple or ungrouped or discrete frequency
distribution.
ii. For continuous random variable it is known as continuous or grouped frequency
distribution.

3. SOME IMPORTANT TERMS


i) Frequency : (Tally Mark)
Frequency of a value of variable is the number of times it occurs in a given
series of observations. A Tally Mark ( / ) is put against the value when it occurs
in the raw data. Having occurred four times, the fifth occurrence is represented
by putting a Cross Tally Mark ( \ ) on the first four tally marks.
ii) Range : Range of a given data is the difference between the largest measure
and the smallest measure in a given set of observations.

iii) Class Interval (or class) : A large number of observations having wide range, is
usually classified into number of groups. Each of these groups is known as a class.

iv) Class frequency, Total Frequency : The number of observations which is class
contains, is known as its class frequency. The total number of observations in
the frequency distribution is known as ‘Total Frequency’.

v) Class Limit : The two ends of a class interval are known as class limits of that
class. The smaller of the two ends is called LOWER Class Limits and the greater
is called Upper Class Limit. These classification are called non-overlapping or
mutually inclusive classification.

vi) Class Boundaries : When we consider a continuous variable, the observation are
recorded nearest to a certain unit. For example, let us consider the distribution
of weight of a group of persons. If we measure the weight nearest to the pound,
then a class interval like (100-109) will include all the observations between

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CA FOUNDATION STATISTICS

99.5 lb to 109.5 lb. Similarly, all the observations between 109.5 lb to 119.5
lb will be included in the class interval (110- 119). For the class interval (100-
109), 99.5 is the lower class-boundary and 109.5 is the upper class boundary.
For the class (110-119), the lower and upper class boundary respectively 109.5
and 119.5. These classifications are called overlapping or mutually exclusive
classification.

Class boundaries can be calculated from the class limits by the following rule:

Lower Class boundary = Lower Class limit -

Upper Class boundary = Upper Class limit +

where, d is the common difference between the upper limit of a class and the
lower limit of the next class. d/2 is called the Correction Factor

vii) Mid-value ( or class mark or mid point or class point) :


Mid-value is the mid-Point of the class interval and is given by Class Mark=

viii) Width or Size : This is the length of a class and is obtained by the difference
between the upper and lower class boundaries of that class.

Class width / size = Difference between 2 successive LCL’s / UCL’s


= Difference between 2 successive LCB’s / UCB’s
= Difference between 2 successive mid values if all the
class are of the same width.
= Difference between UCB and LCB
Note : Class width ≠ UCL-LCL

ix) Frequency Density : This is defined as the frequency per unit width of the class.

Frequency Density =

It measures the concentration of the frequency of different classes.

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x) Relative Frequency : This is the ratio of the class frequency to the total frequency,
i.e. Relative frequency =

• Relative Frequency of any class lies between 0 and 1

xi) Percentage Frequency :


= or Relative frequency x 100

CUMULATIVE FREQUENCY DISTRIBUTION


1. There is another type of frequency distribution known as Cumulative Frequency
Distribution where the frequencies are cumulated.

2. This distribution is prepared from the grouped frequency distribution by taking the
end values (ie. class boundaries and not class limits)

3. Number of observation less than or equal to the class boundaries are called “Less-
Than” Type Cumulative Frequency Distribution.

4. Number of observation greater than or equal to class boundaries are called “ More-
Than” Type Cumulative Frequency Distribution.

5. It can be made both for discrete series i.e. ungrouped data as well as for grouped
data.

Example 2 :
From the following frequency distribution construct the cumulative frequency distribution:
Weights of 60 students in a class
Weights of 60 students in a class

Weight (kg) Frequency


30-34 3
35-39 5
40-44 12
45-49 18

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CA FOUNDATION STATISTICS

50-54 14
55-59 6
60-64 2
Total 60

Cumulative Frequency Distribution of weights of 60 students

Class Boundaries Cumulative Frequency


(Weight in kg)
Less Than More Than
29.5 0 60
34.5 3 57
39.5 8 52
44.5 20 40
49.5 38 22
54.5 52 8
59.5 58 2
64.5 60 0

Otherwise
Cumulative Frequency Distribution of weights of 60 students

Class Boundaries Cumulative Frequency


(Weight in kg)
Less Than More Than
30-34 3 60
35-39 8 57
40-44 20 52
45-49 38 40
50-54 52 22
55-59 58 8
60-64 60 2

Here the less than cumulative frequency of the second class is 8. This implies that
there are 8 students whose weights are less than 39.5 kg (the upper boundary of
that class). The more than cumulative frequency of the second class is 57, i.e. there
are 57 students whose weights are more than 34.5 kg(the lower boundary of that
class).

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Note : By Cumulative Frequency we usually mean less than type.

Example 3 :
(a) Marks CF (Less than) C.I Frequency
Less than 20 5 10-20 5
Less than 30 18 20-30 13
Less than 40 30 30-40 12
Less than 50 35 40-50 5
---- -----
N= 35 = f

(b) Marks C.I CF (more than) Frequency


More than 20 20-30 35 17
More than 30 30-40 18 8
More than 40 40-50 10 7
More than 50 50-60 3 3
---- ----
CF 35

Related MCQ’s
76. The number of observations corresponding to a particular class is known the _____
of that class.
a) frequency b) weight c) power d) both c) and a) above

77. the mid-point of a class is obtained by:


a) adding upper and lower limits
b) by dividing the difference of upper and lower limits by 2
c) by adding upper and lower limits and dividing it by 2
d) by deducting upper limit from the lower limit

78. The Frequency distribution of a continuous variable is known as :


a) grouped frequency distribution
b) simple frequency distribution
c) either a) or b) above
d) both a) and b) above

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79. (Class frequency) / (Width of the class) is defined as:


a) Frequency density b) Frequency distribution
c) Both a) and b) above d) None of the above

80. Tally marks determines


a) class width b) class boundary
c) class limit d) class frequency.

81. Mutually inclusive classification is usually meant for


a) a discrete variable b) an attribute
c) a continuous variable d) none of the above

82. For determining the class frequency it is necessary that these classes are:
a) Mutually exclusive b) Not mutually exclusive
c) Independent d) None of these

83. Mutually exclusive classification usually meant for


a) an attribute b) a continuous variable
c) a discrete variable d) any of the above

84. The number of types of cumulative frequency is :


a) one b) two c) three d) four

85. The lower class boundary is :


a) an upper limit to Lower Class Limit
b) a Lower limit to Lower Class Limit
c) both a) and b) above
d) none of the above

86. Relative frequency for a particular class


a) lies between 0 and 1.
b) lies between – 1 and 0.
c) lies between 0 and 1, both inclusive.
d) lies between – 1 to 1.

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CA FOUNDATION STATISTICS

87. In the construction of a frequency distribution, it is generally preferable to have


classes of
a) equal width b) unequal width
c) maximum width d) none of these.

88. When one end of a class is not specified, the class is called.
a) closed-end class b) open-end class
c) both a) and b) above d) neither a) nor b) above

89. When all classes have equal width, the heights of the rectangles in Histogram will
be numerically equal to the
a) class frequencies b) class boundaries
c) both a) and b0 above d) none of the above

90. The lower extreme point of a class is called :


a) lower class limit. b) lower class boundary
c) both a) and b) above d) none of the above

91. Most extreme values which would ever be included in a class interval are called:
a) Class Interval b) Class Limits
c) Class Boundaries d) None of the above

92. Frequency Density corresponding to a class interval is the ratio of:


a) Class Frequency to the Total Frequency
b) Class Frequency to the Class Length
c) Class Length to the Class Frequency
d) Class Frequency to the Cumulative Frequency

93. The upper class boundary is:


a) An upper limit to the upper class limit
b) A lower limit to the lower class limit
c) Both a) and b) above
d) None of the above

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CA FOUNDATION STATISTICS

94. Mid values are also known as:


a) Lower limit b) Upper limit c) Class mark d) None

95. Length of a class is


a) The difference between the UCB and LCB of that class
b) The difference between the UCL and LCL of that class
c) Either a) or b)
d) Both a) and b)

96. For a particular class boundary, the less than cumulative frequency and more than
cumulative frequency add up to
a) Total Frequency b) 50% of the total Frequency
c) Either a) or b) d) None

Theory Answers

1 b 21 d 41 c 61 b 81 a
2 a 22 b 42 d 62 a 82 a
3 b 23 a 43 a 63 c 83 b
4 a 24 b 44 b 64 a 84 b
5 c 25 d 45 d 65 d 85 b
6 b 26 c 46 d 66 b 86 c
7 d 27 a 47 d 67 c 87 a
8 c 28 a 48 c 68 b 88 b
9 c 29 b 49 a 69 c 89 a
10 c 30 c 50 b 70 c 90 b
11 c 31 c 51 a 71 c 91 c
12 c 32 d 52 b 72 b 92 b
13 b 33 b 53 d 73 d 93 a
14 b 34 d 54 b 74 a 94 c
15 b 35 b 55 a 75 a 95 a
16 a 36 c 56 b 76 a 96 a
17 c 37 a 57 b 77 c
18 a 38 c 58 d 78 a
19 b 39 a 59 c 79 a
20 a 40 d 60 a 80 d

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CA FOUNDATION STATISTICS

Numerical Problems

In 1995, out of the 2,000 students in a college; 1,400 were for graduation and the
rest of Post-Graduation (PG). Out of 1,400 Graduate students 100 were girls, in all
there were 600 girls in the college. In 2000, number of graduate students increased
to 1,700 out of which 250 were girls, but the number of PG students fall to 500 of
which only 50 were boys. In 2005, out of 800 girls 650 were for graduation, whereas
the total number of graduates was 2,200. The number of boys and girls in PG
classes were equal.

97. Present the above information in tabular form.

98. Calculate the percentage increase in the number of graduate students in 2005 as
compared to 1995.

99. Out of 1000 persons, 25% were industrial workers and the rest were agricultural
workers. 300 persons enjoyed world cup matches on TV. 30% of the people who
had not watched world cup matches were industrial workers. What is the number
of agricultural workers who had enjoyed world cup matches on TV?
a) 230 b) 240 c) 250 d) 260

100. The class marks of a distribution are: 26, 31, 36, 41, 46, 51, 56, 61, 66, 71. Find the
true class limits.

101. When the class intervals are 10 – 19, 20 – 29, 30 – 39, ... .... ... Upper class boundaries
(UCB) and the Upper class limits (UCL) of the 2nd class interval are:
a) 29, 29 b) 20, 29 c) 29.5, 29.5 d) 29.5, 29

102. The class mark of the Class Intervals: 10 – 20, 20 – 30, 30 – 40, are:
a) 15, 25, 35 b) 14.5, 24.5, 34.5
c) 30, 50, 70 d) None of the above

103. From the following data find the number of class intervals, if class length is given
as 5:
73, 72, 65, 41, 54, 80, 50, 46, 49, 53
a) 5 b) 6 c) 7 d) 8

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CA FOUNDATION STATISTICS

104. The marks obtained by 30 students in a class test, out of 50 marks, according to
their roll numbers are: 41, 25, 33, 12, 21, 19, 39, 19, 21, 12, 1, 19, 17, 12, 19, 17,
12, 17, 17, 41, 41, 19, 41, 33, 12, 21, 33, 5, 1, 21. If the data are arranged in the
form of a frequency distribution with classes 1-10, 11-20, 21-30, 31-40, 41-50
then the frequencies of these 5 class intervals are:
a. 4, 13, 5, 4, 4 b. 3, 14, 5, 4, 4
c. 4, 13, 4, 5, 4 d. None of the above

105. The number of accidents for several days in a locality is given below:
No. of accidents : 0 1 2 3 4 5 6
Frequency : 15 19 22 31 9 3 2
What is the number of cases when 3 or less accident occurred?
a) 56 b) 6 c) 68 d) 87

106. The following data relate to the incomes of 86 persons :


Income (in `): 500-999 1000-1499 1500-1999 2000-2499
No. of persons: 15 28 36 7
What is the percentage of persons earning more than ` 1499?
a) 50 b) 45 c) 40 d) 60

107. Find the number of observations between 250 and 300 from the following data :
Value More than: More than More than More than More than
200 250 300 350
No. of observation: 56 38 15 0
a) 56 b) 23 c) 15 d) 8

108. Cost of sugar in a month under the heads raw materials, labour, direct production
and others were 12, 20, 35 and 23 units respectively. The difference between their
central angles for the largest and smallest components of the cost of sugar is (in
degrees):
a) 48 b) 56 c) 72 d) 92

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109. Sales of X Ltd for 4 months is given below:


Month : Jan Feb Mar April
Sales (`) : 10,000 15,000 18,000 9,000
The above data represents:
a) Discrete Series b) Continuous Series
c) Individual Series d) None of the above

Fill in the following Frequency Distribution Table

Class Class Class Class Mid Width Fre Relative Percentage

Interval Frequency Limits Bound Value of the quency Frequency Frequency

aries Class Density


1–5 9

6 – 10 8

11 – 15 9

16 – 20 12

21 – 25 31

26 – 30 20

31 – 35 11

Total 100

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CA FOUNDATION STATISTICS

HOMEWORK SECTION

1. The quickest method to collect primary data is:


(a) Personal interview (b) Indirect interview
(c) Mailed Questionnaire Method (d) Telephonic interview

2. Which of the following statement is true?


(a) Statistics is derived from the French word ‘Statistik’
(b) Statistic is derived from the Italian word ‘Statista’.
(c) Statistics is derived from the Latin word ‘Statistique’.
(d) None of these

3. The following data relates to the incomes of 90 persons:



Income in ` : 1500–1999 2000–2499 2500–2999 3000–3499
No. of Persons: 13 32 20 25

What is the percentage of persons earning more than ` 2,500?


(a) 45 (b) 50 (c) 52 (d) 55

4. In tabulation, source of data, if any, is shown in the:


(a) Stub (b) Body (c) Caption (d) Footnote

5. Divided bar chart is good for:


(a) Comparing various components of a variable
(b) Relating the different components to the whole
(c) (a) and (b)
(d) (a) or (b)

6. Relative frequency for a particular class lies between:


(a) 0 and 1 (b) 0 and 1, both inclusive
(c) –1 and 0 (d) –1 and 1

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7. Find the number of observations between 350 and 400 from the following data:

Value: More than 200 More than 350 More than 400 More than 450
No. of 48 25 12 0
observations:
(a) 13 (b) 15 (c) 17 (d) 19

8. When the width of all classes is same, frequency polygon has not the same area as
the Histogram:
(a) False (b) True (c) Both (d) None

9. The graphical representation of a cumulative frequency distribution is called:


(a) Histogram (b) Ogive (c) Both (d) None

10. A table has ____ parts.


(a) Four (b) Two (c) Five (d) None

11. Cost of sugar in a month under the heads raw materials, labour, direct production
and others were 12, 20, 35 and 23 units respectively. What is the difference between
the central angles for the largest and smallest components of the cost of sugar?
(a) 72° (b) 48° (c) 56° (d) 92°

12. Frequency density corresponding to a class interval is the ratio of :


(a) Class Frequency to the Total Frequency
(b) Class Frequency to the Class Length
(c) Class Length to the Class Frequency
(d) Class Frequency to the Cumulative Frequency

13. In order to compare two or more related series, we consider:


(a) Multiple Bar Chart (b) Grouped Bar Chart
(c) (a) or (b) (d) (a) and (b)

14. An area diagram is:


(a) Histogram (b) Ogive
(c) Frequency Polygon (d) None of these

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15. Most extreme values which would ever be included in a class interval are called:
(a) Class Interval (b) Class Limits
(c) Class Boundaries (d) None of these

16. In 2000, out total of 1,750 workers of factory, 1,200 were members of a trade union.
The number of women employed was 200 of which 175 did not belong to a trade
union. In 2004, there were 1,800 employees who belong to a trade union and 50
who did not belong to trade union. Of all the employees in 2004, 300 were women
of whom only 8 did not belong to the trade union. On the basis of this information,
the ratio of female members of the trade union in 2000 and 2004 is:
(a) 292 : 25 (b) 8 : 175
(c) 175 : 8 (d) 25 : 292

17. The lower class boundary is:


(a) An upper limit to Lower Class Limit (b) A lower limit to Lower Class Limit
(c) Both (a) & (b) (d) None of these

18. The distribution of profits of a company follows:


(a) J-shaped frequency curve (b) U-shaped frequency curve
(c) Bell – shaped frequency curve (d) Any of these

19. Out of 1000 persons, 25 per cent were industrial workers and the rest were
agricultural workers. 300 persons enjoyed world cup matches on T.V. 30 per cent of
the people who had not watched world cup matches were industrial workers. What
is the number of agricultural workers who had enjoyed world cup matches on TV?
(a) 230 (b) 250 (c) 240 (d) 260

20. Median of a distribution can be obtained from:


(a) Histogram (b) Frequency Polygon
(c) Less than type Ogives (d) None of these

21. In indirect oral investigation:


(a) Data is not capable of numerical expression
(b) Not possible or desirable to approach informant directly
(c) Data is collected from the books
(d) None of these

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CA FOUNDATION STATISTICS

22. Circular diagram are always:


(a) One-dimensional (b) Two-dimensional
(c) Three-dimensional (d) Cartograms

23. The column headings of a table are known as:


(a) Body (b) Stub (c) Box-head (d) Caption

24. Some important sources of secondary data are ____


(a) International and Government sources
(b) International and primary sources
(c) Private and primary sources
(d) Government sources

25. From the following data find the number class intervals if class length is given as 5.
73, 72, 65, 41, 54, 80, 50, 46, 49, 53.
(a) 6 (b) 5 (c) 7 (d) 8

26. The most appropriate diagram to represent the data relating to the monthly
expenditure on different items by a family is
(a) Histogram (b) Pie-diagram
(c) Frequency polygon (d) Line graph

27. Which of the following is statistical data?


(a) Ram is 50 years old
(b) Height of Ram is 5´6´´ and of Shyam and Hari is 5´3´´ and 5´4´´ respectively
(c) Height of Ram is 5´6´´ and weight is 90 kg
(d) Sale of A was more than B and C

28. Sales of XYZ Ltd. for 4 months is:


Months Sales
Jan. 10000
Feb. 15000
May 18000
Apr. 9000
The above data represents:
(a) Discrete (b) Continuous (c) Individual (d) None of these

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CA FOUNDATION STATISTICS

29. Mid values are also called ____


(a) Lower limit (b) Upper limit (c) Class mark (d) None

30. Which of the following is not a two-dimensional figure?


(a) Line Diagram (b) Pie Diagram
(c) Square Diagram (d) Rectangle Diagram

31. Less than type and more than type gives meet at a point known as:
(a) Mean (b) Median (c) Mode (d) None

32. Arrange the dimensions of Bar diagram, Cube diagram, Pie diagram in sequence.
(a) 1, 3, 2 (b) 2, 1, 3 (c) 2, 3, 1 (d) 3, 2, 1

33. With the help of histogram one can find.


(a) Mean (b) Median (c) Mode (d) First Quartile

34. Nationality of a person is:


(a) Discrete variable (b) An attribute
(c) Continuous variable (d) None

35. If we plot less than and more than type frequency distribution, then the graph
plotted is _____.
(a) Histogram (b) Frequency Curve
(c) Ogive (d) None of these

36. The primary rules that should be observed in classification.


(i) As far as possible, the class should be of equal width
(ii) The classes should be exhaustive
(iii) The classes should be unambiguously defined
Then which of the following is correct.
(a) only (i) and (ii) (b) only (ii) and (iii)
(c) only (i) and (iii) (d) all (i), (ii) and (iii)

37. Using Ogive Curve, we can determine


(a) Median (b) Quartile
(c) Both (a) and (b) (d) None

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CA FOUNDATION STATISTICS

38. Mode can be obtained from


(a) Frequency polygon (b) Histogram
(c) Ogive (d) All of the above

39. The data obtained by the internet are


(a) Primary data (b) Secondary data
(c) Both (a) and (b) (d) None of these

40. The statistical measure computed from the sample observations alone have been
termed as
(a) estimate (b) parameter (c) statistic (d) attribute

41. When the two curves of ogive intersect, the point of intersection provides:
(a) First Quartile (b) Second Quartile
(c) Third Quartile (d) Mode

42. The Choronological classification of data are classified on the basis of:
(a) Attributes (b) Area (c) Time (d) Class Interval

43. Arrange the following dimension wise: pie-diagram, bar-diagram and cubic
diagram.
(a) 1, 2, 3 (b) 3, 1, 2 (c) 3, 2, 1 (d) 2, 1, 3

44. The frequency of class 20-30 in the following data is:


Class 0–10 0–20 0–30 0–40 0–50
Cumulative Frequency 5 13 28 34 38
(a) 5 (b) 28 (c) 15 (d) 13

45. The Graphical representation by which median is calculated is called


(a) Ogive Curve (b) Frequency Curve
(c) Line diagram (d) Histogram

46. From which graphical representation, we can calculate partition values?


(a) Lorenz curve (b) Ogive curve
(c) Histogram (d) None of the above

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CA FOUNDATION STATISTICS

47. The data given below refers to the marks gained by a group of students:
Marks Below 10 Below 20 Below 30 Below 40 Below 50
No. of Students 15 38 65 84 100

Then the no. of students getting marks more than 30 would be _____.
(a) 50 (b) 53 (c) 35 (d) 62

48. What is a exclusive series?


(a) In which both upper and lower limit are not included in class frequency.
(b) In which lower limit is not included in class frequency
(c) In which upper limit is not included in class frequency
(d) None of the above

49. A pie diagram is used to represent the following data:

Source of Income: Customs Excise Income Tax Wealth Tax


Amount in Crores 120 180 240 180
Angle in the pie diagram corresponding to income tax is.
(a) 120o (b) 240o (c) 180o
(d) None

50. Difference between the maximum and minimum value of a given data is called
(a) Width (b) Size (c) Range (d) Class

51. If class interval is 10 – 14, 15 – 19, 20 – 24, then the first class is
(a) 10 – 15 (b) 9.5 – 14.5 (c) 10.5 – 15.5 (d) 9 – 15

52. Difference between the upper and lower boundary of a class is called _____.
(a) Class interval (b) Mid value
(c) Class boundary (d) Frequency

53. There were 200 employees in an office in which 150 were married. Total male
employees were 160 out of which 120 were married. What was the number of
female unmarried employees?
(a) 30 (b) 10 (c) 40 (d) 50

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CA FOUNDATION STATISTICS

54. “The less than Ogive” is a:


(a) U-Shaped Curve (b) J-Shaped Curve
(c) S-Shaped (d) Bell Shaped Curve

55. To draw Histogram, the frequency distribution should be:


(a) Inclusive type (b) Exclusive type
(c) Inclusive and Exclusive type (d) None of these

56. The most appropriate diagram to represent the five – year plan outlay of India in
different economic sectors is:
(a) Pie diagram (b) Histogram
(c) Line-Graph (d) Frequency Polygon

57. If the fluctuations in the observed value are very small as compared to the size of
the item, it is presented by:
(a) Z chart (b) Ogive curve
(c) False base line (d) Control chart

58. For constructing a histogram, the class-intervals of a frequency distribution must


be
(a) equal (b) unequal
(c) equal or unequal (d) none of these

59. 100 persons are classified into male / female and graduate / non-graduate classes.
This data classification is:
(a) Cardinal data (b) Ordinal data
(c) Spatial Series data (d) Temporal data

60. If we draw a perpendicular on x-axis from the point of inter-section of both ‘less
than’ and ‘more than’ frequency curves we will get the value of _____
(a) mode (b) median
(c) arithmetic mean (d) third quartile

61. Histogram is used for the presentation of the following type of series
(a) Time series (b) Continuous frequency distribution
(c) Discrete frequency distribution (d) Individual observation

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CA FOUNDATION STATISTICS

62. Curves obtained by joining the points whose x coordinates are the upper limits of
the class intervals and y coordinates are the corresponding cumulative frequencies
is called
(a) Frequency Polygon (b) Frequency curve
(c) Histogram (d) Ogive

63. The number of observations between 150 and 200 based on the following data is
Value More than 100 More than 150 More than More than
200 250
No. of observations: 76 63 28 05
(a) 46 (b) 35 (c) 28 (d) 23

64. The number of car accidents in several days in a locality are given below:
No. of accidents: 0 1 2 3 4 5 6 7
Frequency: 12 9 11 13 8 9 6 3
What will be the number of cases when 4 or more accidents occurred?
(a) 32 (b) 41 (c) 26 (d) 18

65. The most common form of diagrammatic representation of a grouped frequency


distribution is:
(a) Histogram (b) Ogive (c) Both (d) None

66. Classification is of ____ kinds.


(a) Two (b) Three (c) One (d) Four

67. The chart that uses logarithm of variable is known as:


(a) Ratio chart (b) Line chart
(c) Multiple line chart (d) Component line chart

68. Find the number of observation between 250 and 300 from the following data:
Value more than 200 250 300 500
No. of observation 56 38 15 0
(a) 38 (b) 23 (c) 15 (d) None of the above

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CA FOUNDATION STATISTICS

69. Data collected on religion from the census reports are:


(a) Primary data (b) Secondary data
(c) Sample data (d) (a) or (b)

70. In collection of data which of the following are interview methods:


(a) Personal interview method (b) Telephone interview method
(c) Published data (d) (a) and (b)

71. Profits made by XYZ bank is different years refer to :


(a) An attribute (b) A discrete variable
(c) A continuous variable (d) None of these

72. Mode of presenting data


(a) Textual presentation (b) Tabulation
(c) Oral presentation (d) (a) and (b)

73. If the data represent costs spent on conducting an examination under various heads,
then the most suitable diagram will be:
(a) Pie diagram (b) Frequency diagram
(c) Bar diagram (d) Multiple bar diagram

74. The point of intersection of less than ogive and greater than ogive curve gives us:
(a) Mean (b) Mode
(c) Median (d) None of the above

75. ‘Stub’ of a table is the


(a) Left part of the table describing the columns
(b) Right part of the table describing the columns
(c) Right part of the table describing the rows
(d) Left part of the table describing the rows

76. Frequency density is used in the construction of


(a) Histogram when the classes are of unequal width
(b) Ogive
(c) Frequency polygon
(d) None

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CA FOUNDATION STATISTICS

77. Divided bar chart is considered for


(a) Comparing different components of a variable
(b) The relation of different components to the table
(c) (a) or (b)
(d) (a) and (b)

78. The following frequency distribution:


X 12 17 24 36 45
F 2 5 3 8 9
is classified as
(a) Continuous distribution (b) Discrete distribution
(c) Cumulative frequency distribution (d) None of the above

79. Histogram is useful to determine graphically the value of


(a) Arithmetic mean (b) Median
(c) Mode (d) None of the above

80. Data are said to be ______ if the investigator himself is responsible for the collection
of the data.
(a) Primary data
(b) Secondary data
(c) Mixed of primary and secondary data
(d) None of the above

81. A suitable graph for representing the portioning of total into sub parts in statistics
is:
(a) A Pie chart (b) A pictograph (c) An ogive (d) Histogram

82. The number of times a particular items occurs in a class interval is called its:
(a) Mean (b) Frequency
(c) Cumulative frequency (d) None of the above

83. An ogive is a graphical representation of


(a) Cumulative frequency distribution (b) A frequency distribution
(c) Ungrouped data (d) None of the above

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CA FOUNDATION STATISTICS

84.
Class 0 – 10 10 – 20 20 – 30 30 – 40 40 – 50
Frequency 4 6 20 8 3
For the class 20 – 30. Cumulative frequency is:
(a) 10 (b) 26 (c) 30 (d) 41

85. Which of the following graph is suitable for cumulative frequency distribution?
(a) Ogive (b) Histogram (c) G.M. (d) A.M.

86. Histogram can be shown as


(a) Ellipse (b) Rectangle (c) Hyperbola (d) Circle

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HOMEWORK SOLUTION

1. (d) Telephonic interview method is considered as the quickest method to collect


primary data as the relevant information can be gathered by the researcher himself
by contacting the interviewer over the phone without any time log.

2. (b) According to the History of Statistics we can see that one school of thought is of
the view that statistics is derived from the Italian word ‘Statist’.

3. (b) No. of persons earning more than ` 2500 = 20 + 25 = 45


\ The percentage of persons earning more than

45
` 2,500 = 90 × 100 = 50%

4. (d) The source of data, if any, in any kind to tabulation is shown in the footnote.

5. (c) Divided Bar Chart, also known as percentage Bar Diagrams, is good for both the
things i.e. for comparing different components of a variable as well as the relating
of the different components to the whole.

6. (b) Relative frequency of a class interval is defined as the ratio of the class frequency
to the total frequency. Therefore, Relative frequency for a particular class lies
between 0 and 1 both inclusive.

7. (a) The number of observation which are more than 350 in inclusive of those
observation which are more than 400 and 450.
\ Deducting those number of observations which are more than 400 and 450 from
the number of observations which are 350, we will get the number of observations
lying between 350 and 400.

So, the number of observations lying between 350 and 400 = 25 – 12 – 0 = 13

8. (a) When the width of all classes is same frequency, polygon has the same area as
the histogram.

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CA FOUNDATION STATISTICS

9. (b) The graphical representation of a cumulative frequency distribution is called


Ogive. i.e. by plotting the cumulative frequency against the respective class
boundary, we get olives which can be less than type ogive are these than type olives
depending upon the type of cumulative frequency distribution.

10. (c) A table has five parts namely.


(i) Stub
(ii) Caption
(iii) Body
(iv) Box head
(v) Title

11. (d) Total components of the cost of sugar


= (12 + 20 + 35 + 23) units
= 90 units
Largest component of cost of sugar
= 35 units

12
i.e. 90 × 360° = 140
Smallest component of cost of sugar
= 12 units

12
i.e. 90 × 360° = 48°
\ Difference between the central angles for the largest and smallest components
of the cost of sugar
= 140° – 48° = 92°

12. (b) Frequency density of a class interval is defined as the ratio of the frequency of
that class interval to the corresponding class length.

13. (c) Multiple Bar Chart also known as Grouped Bar Chart is one dimensional diagram
in which two or more bars adjoining each other are constructed to represent the
values of different variables or the values of various components of the same
variable.
Multiple Bar Chart or Grouped Bar Chart is considered to compare two or more
related series.

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14. (a) Histogram is a graph that represents the class frequencies in a frequency
distribution by vertical adjacent rectangles. A Histogram is two-dimensional, i.e. a
histogram comprises of both length as well as the width. As the Product of length
and width indicates the area. Therefore Histogram is referred to as an Area Diagram.
Its area represents the total frequency as distributed through the classes.

15. (c) Most extreme values which would be ever included in a class-interval are called
as class boundaries, also referred to as actual class limit, are defined as the limits
up to which the two limits, (actual) of each class may be extended to fill up the gap
that exist between the classes.

16. (d) Title: Sex distribution of Trade Union and Non-union members.

Year 2000 2004


Category Male Female Total Male Female Total
Member 1175 25 1200 1508 292 1800
Non-member 375 175 550 42 8 50
Total 1550 200 1750 1550 300 185

Required ratio of female members of the trade union is 2000 : 2004 = 25 : 292.

17. (b) Lower class Boundary


1
Lower class limit - 2 (upper class limit to the class – lower class limit to the
succeeding class). Therefore, lower class boundary is a lower limit to lower class
limit.

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CA FOUNDATION STATISTICS

18. (c) The bell-shaped curve looks like a bell. On a bell-shape curve, the frequency,
starting from a rather low value, gradually reaches the maximum value, somewhere
near the central part and then gradually decreases to reach is lowest value at the
other extremity. Similar is the case of profits of a company. It rises till the resources
are fully utilized and if the resources are still utilized then due to over-utilization of
resources, the profits start declining. This can be clearly depicted through the data
given below:

Year Profits (` in lacs)


2004 10
2005 12
2006 15
2007 13
2008 9

19. (d)
Category T.V. NTV Total
Agricultural workers 260 490 750
Industrial workers 40 210 250
Total 300 700 1000

Therefore, number of agricultural workers who had enjoyed world cup matches on
T.V. = 260.

20. (c) Ogives are considered for obtaining quartiles graphically. If a perpendicular is
drawn from the point of intersection of the two o-gives, i.e. less than type ogive and
more than type give, on the horizontal axis, then x-value of this point gives us the
value of median, the second or middle quartile.

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CA FOUNDATION STATISTICS

21. (b) Indirect oral investigation is a method in which a third person is contacted who
is expected to know the necessary details about the persons for whom the enquiry
is meant. This method is suitable when it is not possible or deliverable to approach
informant directly.

22. (b) Circular diagram is a Two-dimensions diagram in which a circle is prepared


and the radius of circle is determined on the basis of minimum square root value of
the variable. Two-dimensional diagram is a diagram which is prepared on the basis
of two dimension i.e. length and width.

23. (d) Each column is given a heading to explain what the figures in the columns
represent. These column headings of a table are known as caption.

24. (a) The Government source like Indian trade journal – weekly, reserve Bank of
Indian Bulletin – monthly, etc and International sources like WHO, World Bank, IMF,
etc are some of the important sources of secondary data.

25. (d) We have, Range = Maximum value – Minimum value = 80 – 41 = 39


Class length = 5
No. of class Intervals × class lengths Range
No. of class Intervals × 5 @ 39
39
No. of class Intervals =
5
(We always take the next integer as the no. of class intervals so as to include both
the minimum and maximum values).

26. (b) Pie diagram

27. (b) Option (b) represents statistical data which can be understood by referring the
definition of statistics keeping note of the following points.
1. Statistics are aggregate of facts. A single figure cannot be called as statistics
because it cannot be compared to draw any conclusion out of it.
2. All statistical facts are expressed in numbers. Qualitative expressions like
young, old, etc do not constitute statistics.
3. Statistics should be placed in relation to each other so as to facilitate comparison.
For this purpose, the data must be homogenous and not heterogenous. e.g.
height and weight are heterogenous in character.

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CA FOUNDATION STATISTICS

28. (c) Given data represents unclassified and ungrouped data. Therefore, the given
series is an individual series.

29. (c) Mid-values are also called class mark.

Lower class limit + Upper class limit


Class Mark =
2

30. (a) Line Diagram.

31. (b) By plotting cumulative frequency against the respective class boundary, we
get Ogives. There are two type of ogives:
(i) Less than type ogive.
(ii) More than type ogive.
Olives may be considered for obtaining quartiles graphically. If a perpendicular is
drawn from the point of intersection of two ogives on the horizontal axis, then
then the x-value of this point gives us the value of median, the second or middle
quartile.
Therefore, the meeting point of less than type ogive and more than type ogive is
known as ‘Median’.

32. (a) Bar diagram is one dimensional.


Cube diagram has 3 dimensions viz. length, breadth and height and hence is three-
dimensional.
Pie-diagram is two-dimensional.
Therefore, if we arrange it in sequence, we get:
Bar diagram, cube-diagram and Pie diagram i.e. 1, 3, 2.

33. (c) Histogram is used to find Mode. [Self Explanatory]

34. (b) A qualitative characteristic is known as an attribute.


So the nationality of a person is an attribute as it is a qualitative characteristic.

35. (c) If we plot less than and more than type frequency distribution, then the graph
plotted is Ogive.
Ogive are of two types – Less than type ogive and more than type ogive. [self-
explanatory]

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CA FOUNDATION STATISTICS

36. (d) Requisites of a good classification are:


1. It should be exhaustive
2. It should be mutually exclusive
3. It should be unambiguous
4. It should be stable and flexible
5. It should be homogeneous
6. It should be a revealing classification

37. (c) Olives are considered for obtaining quartiles graphically. If a perpendicular is
drawn from point of intersection of two Olives on horizontal axis, then x-value of
this point gives us the value of median (2nd or middle quartile).

38. (b) Mode can be obtained from histogram.

39. (b) Secondary data

40. (c) Statistic

41. (b) We know, that the two curves viz. Less than Ogive & More than Ogive intersect
at a point called Median or we can say Second Quartile.

42. (c) Chronological Classification data are classified on the basis of ‘Time’.

43. (d) Pie-Diagram: Two Dimensional Diagram (2)


These Diagrams are also called as “Area-Diagrams”.
Used when different segments or components of values are also to be presented.
Bar-Diagram: One Dimensional Diagram (1) means such diagrams where only one
dimensional measurement i.e. height is used. There is no importance of width or
thickness in these diagrams. The heights of bars are taken on the basis of values.

Cubic-Diagram: Three Dimensional Diagram (3) are those in which three dimensions
viz length, breadth & height are taken into account used when these is wide range
of data and three different but inter-related features of data are to be represented
simultaneously.

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CA FOUNDATION STATISTICS

44. (c)
Class Cumulative Freq. Frequency
0–10 5 5
10–20 13 13 – 5 = 8
20–30 28 28 –13 = 15
30–40 34 34 – 28 = 6
40–50 38 38 – 34 = 4

45. (a) The median is calculated by Ogive Curve

46. (b) We can calculate partition values with the help of O’Give Curve for graphical
representation.

47. (c) Converting the given “Less than” type frequency distribution to Normal
frequency distribution:
Class Interval (f) frequency
0 – 10 15
10 – 20 23
20 – 30 27
30 – 40 19
40 – 50 16
Hence,
The no. of students getting marks more than 30 is 19 + 16 = 35.

48. (c) In exclusive series, upper limit is not included in class frequency.

49.

240
= 720
X 360 = 120

50. (c) Difference between the maximum and minimum value of given data is called
Range.

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CA FOUNDATION STATISTICS

51. (b) Class intervals is 10 – 14, 15 – 19, 20 – 24


D = 15 – 14 = 1


First class is (10 – 0.5) – (14 + 0.5)
= 9.5 – 14.5

52. (a) The difference between the upper and lower boundary of class is called class
interval (class width).

53. (b) Total Employees in the office = 200


No. of Employees who are married = 150
No. of Employees who are unmarried = 200 – 150 = 50
No. of Total male Employees = 160
No. of Married male Employees = 120
No. of unmarried male Employees = 160 – 120 = 40
No. of females who are unmarried = 50 – 40 = 10

54. (c) “The less than Ogive” is a s-shaped.

55. (b) To Draw Histogram, the frequency distribution should be exclusive type.

56. (a) Pie diagram

57. (c) If the fluctuations in the observed value are very small as compared to the size
of the item, it is present by false base line.

58. (a) For constructing a histogram, the class-intervals of a frequency distribution


must be equal.

59. (b) Original data

60. (b) If we draw a perpendicular on x-axis from the point of intersection of both
‘less than’ and ‘more than’ frequency curve. We will get the value of ‘Median’.

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CA FOUNDATION STATISTICS

61. (b) Histogram is used for the presentation to the continuous frequency distribution
of the series.

62. (d) Curve obtained by joining the points whose x co-ordinate are the upper limits of
the class intervals and y co-ordinates are the corresponding cumulative frequencies
is called ‘o’ give.

63. (b)
C.I. Frequency
100 – 150 76 – 63 = 13
150 – 200 63 – 28 = 35
200 – 250 28 – 05 = 23
250 – 300 05
The no. of observation b/w 150 and 200 is 35.

64. (c)

No. of Accident 0 1 2 3 4 5 6 7
Frequency 12 9 11 13 8 9 6 3
No. of Cases when 4 or more Accidents occurred
= 8 + 9 + 6 + 3 = 26

65. (a) The most common form of diagrammatic representation of a group frequency
distribution is Histogram.

66. (d) Classification is of four kind.

67. (a) The chart that uses logarithm of variable is known as Ratio Chart.

68. (b)
C.I. Frequency
200 – 250 56 – 38 = 18
250 – 300 38 – 15 = 23
300 – 350 15 – 0 = 15
350 – 400 0–0=0
No. of observation b/w 250 and 350 = 23.

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CA FOUNDATION STATISTICS

69. (b) Data collected on religion from the census reports are secondary data.

70. (d) Personal interview method and telephone interview method are the interview
method.

71. (c) Profit made by XYZ Bank is different years refer to a continuous variable.

72. (d) Mode of presentation data are textual presentation and tabulation.

73. (a) If the data represent cost spent on conducting an examination under various
heads then the most suitable diagram will be Pie diagram.

74. (c) The point of intersection of less than 0give and greater than 0give curve gives
us Median.

75. (d) ‘Stub’ of a table is the left part of the table describing the rows.

76. (a) Frequency density is used in the construction of Histogram.

77. (d) Divided Bar Chart is considered for comparing different components of a
variable and the relation of different components to the table.

78. (b) Discrete distribution

79. (c) Histogram is useful to determine graphically the value of ‘mode’.

80. (a) Data are said to be Primary data if the Investigator himself is responsible for
the collection of the data.

81. (a) A suitable graph for representating the portioning of total into sub parts in
statistics is a Pie chart.

82. (b) The number of times a particular items occurs in a Class Interval is called its
Frequency.

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CA FOUNDATION STATISTICS

83. (a) An Ogive is a graphical representation of cumulative frequency distribution.

84. (c)
C.I. F C.F.
0 – 10 4 4
10 – 20 6 10
20 – 30 20 30
30 – 40 8 38
40 – 50 3
Cumulative frequency of Class Interval ’20 – 30’ is 30.

85. (a) Ogive is graph suitable for cumulative frequency distribution.

86. (b) Histogram can be shown as Rectangle.

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CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 1


25 Marks

1. The meaning of STATISTICS in plural sense is:


a) A set of numerical figures, related to any country
b) A set of artificial figures, related to any city
c) A set of numerical figures, related to any sphere of enquiry
d) A set of artificial figures, related to any sphere of enquiry

2. Which of the following best describes a frequency table of a variable?


a) A two-way classification table.
b) A table of frequency.
c) A one way classification table based on a variable, classified into class intervals
with the cor-responding class frequency.
d) A two-way classification table with frequencies.

3. The reason of mistakes in collection of primary data is because of:


a) Carelessness of investigators b) Carelessness of informants
c) Biasness of investigators d) All of the above

4. The method of presenting the classified data is:


a) Tabulation b) Diagrammatic presentation
c) Graphic presentation d) All of the above

5. If information is to be collected from educated people in a large area, suitable


method shall be:
a) Census b) Direct personal investigation
c) Questionnaire d) Through correspondents

6. As the numbers of observations and classes increase, the shape of a frequency


polygon:
a) tends to become increasingly smooth
b) tends to become jagged
c) stays the same
d) varies only if data become more reliable

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CA FOUNDATION STATISTICS

7. Which one of the following statement is not CORRECT?


a) Indirect oral investigation brings in bias of investigator
b) Questionnaires through investigators is a suitable method in case of extensive
enquiries
c) Pre-testing of questionnaires is essential for a good questionnaires
d) None of the above

8. Basis of classification of data under chronological classification shall be:


a) According to place b) According to quality
c) Magnitude of classes d) None of the above

9. Publication of data by the Department of Economics and Statistics are called:


a) Departmental data b) Internal data
c) Secondary data d) Primary data

10. Charts and graphs are the presentation of numerical facts by means of:
a) Symbols b) Points and Lines
c) Area and other Geometrical forms d) All of the above

11. The diagrams for the preparation of which both length and width are considered,
are called:
a) Sub-divided bar diagram b) Multi bar diagram
c) Percentage sub-divided diagram d) Two-dimensional diagram

12. Continuous data are differentiated from discrete data in that:


a) Discrete data can take on any real number
b) Continuous data take on only whole numbers
c) Continuous data classes may be represented by fractions
d) Discrete data classes are represented by fractions

13. Class width is measured as:


a) Half of the sum of lower and upper limits
b) Half of the difference between upper and lower limits
c) The difference between upper and lower boundaries
d) The sum of the upper and lower limits

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CA FOUNDATION STATISTICS

14. Class-mark is obtained:


a) By multiplying the upper and lower limits
b) By deducting lower limit from the upper limit
c) By dividing the total of upper and lower limit by 2
d) By dividing the difference of upper and lower limit by 2

15. When there is an increase in a series at constant rate, the graph will be:
a) Convex curve b) Concave curve
c) A straight line from left bottom to right top
d) A straight line from left top to right bottom

16. With the help of histogram we can prepare:


a) Frequency polygon b) Frequency curve
c) Frequency distribution d) All of the above
17. Non-dimensional diagrams are also known as:
a) Cubes b) Spheres c) Pictograms d) All of the above

18. The headings of the rows given in the first column of a table are called:
a) Captions b) Sub-titles c) Stubs d) Prefatory notes

19. Ogives for more than type and less than type distribution intersect at:
a) Mode b) Quartile c) Mean d) None of the above

20. The following frequency distribution is classified as:


X: 0 1 2 3 4 5 6
F: 2 5 8 10 19 16 13
a) Cumulative frequency distribution b) Continuous distribution
c) Discrete distribution d) Median

21. The following series is of the type of:


Year Population in city A
2010 29,00,000
2011 31,25,000
2012 35,00,000
2013 37,20,000

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CA FOUNDATION STATISTICS

a) Individual Series b) Discrete Series


c) Geographical Series d) Time Series

22. The following distribution is of which type:


Vales (less than) 20 25 30 35 40 45 50
Frequency 5 10 15 20 25 30 45
a) Discrete type b) Inclusive class type
c) Exclusive class type d) None of the above

23. Find the value of F from the following distribution:


X Frequency Cumulative Frequency
3 5 5
6 7 12
8 6 F
12 3 21

a) 12 b) 18 c) 21 d) 24

24. The given histogram shows a frequency distribution of marks obtained by 56 students
in statistics. Find the number of students securing marks between 70 and 100.


a) 2 b) 4 c) 6 d) 8

25. Study the following data. If data is presented on a pie-chart. Find the difference
between central angle of C and E.
City A B C D E
Population (in Cr) 10 6 1 0.5 0.5

a) 20o b) 10o c) 120o d) 100o

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CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS

1. In plural sense, statistics means a set of numerical figures, related to any sphere of
enquiry. Option C

2. A frequency table of a variable is a one way classification table based on a variable,


classified into class intervals with the corresponding class frequency. Option C

3. Mistakes in collection of primary data can be due to error by the investigators and
informants both. Option D

4. Classified data can be presented by means of any graphs or tables or diagrams.


Option D

5. Questionnaire is the best method to collected data from large educated population
with least cost and in minimum time. Option C

6. As the number of observations and class increase, the frequency polygon tends to
becomes flat or starts smoothening. Option A

7. All the three statements are correct. None of them is NOT CORRECT, Option D

8. Chronological classification is based on time frame or time series. Option D

9. Publication of data by the Department of Economics and Statistics are secondary in


nature. Op-tion C

10. Both charts and graphs use symbols, points, lines, area, and geometric forms.
Option D

11. Two-dimensional diagrams use both length and width of the data. Option D

12. In continuous data classes may be represented by fractions but not in discrete data
classes. Option C

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CA FOUNDATION STATISTICS

13. Class width or length of a class interval is the difference between upper and lower
boundaries of the class. Option C

14. Class-mark or mid-point of a class is obtained by dividing the total of upper and
lower limit by 2. Option C

15. An increasing graph at a constant rate is shown by a upward sloping straight line
from left to right on a graph paper. Option C

16. With the help of histograms, one can draw a frequency curve, frequency polygon
and even a frequency distribution. Option D

17. Pictograms are the non-dimensional diagrams. Option C

18. The heading of the rows given in the first column are mentioned in stub of a table.
Option C

19. The intersecting point of the more than type and less than type Ogives gives Median
of the distribution. Option D

20. The given distribution is for discrete data. Option C

21. The given series is time based. It is a time series data. Option D

22. The given distribution is a cumulative frequency distribution for exclusive type class.
Option C

23. F = 12 + 6 = 18. Option B

24. Total frequency = 56. Total frequency on graph = 0.5 + 1 + 1.5 + 1 + 0.5 + 0.5 + 0.2
+ 0.2 + 0.2 = 5.6. Thus 0.1 points on graph represents 1 unit of frequency. Students
securing marks between 70 and 100 = 0.2 + 0.2 + 0.2 = 0.6 points of graph = 6
students. Option C

25. Total population = 10 + 6 + 1 + 0.5 + 0.5 = 18 representing 360o on the pie chart.
Difference be-tween C and E = 1 – 0.5 = 0.5 Cr = 0.5 * 360o/18 = 10o Option B

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CA FOUNDATION STATISTICS

MEASURES OF CENTRAL TENDENCY


(Averages of First Order)

Introduction:
• Central tendency is defined as the tendency of the data to concentrate towards the central
or middle most region of the distribution.

• In other words, Central Tendency indicates average.

• Any average is a representative value of the entire distribution value

• Average discovers uniformity in variability.

• The tendency of the variables to accumulate at the center of the distribution (data) is
known as measures of central tendency.

• Measures are popularly also known as averages.

Average


Mathematical Avg. Positional Avg.



A. M G. M H. M Median Mode

The criteria for Ideal Measures of Central Tendency

1. It should be simple to understand. (Mean, Median & Mode are easy to compute)

2. It should be based on all the observations. (AM,GM,HM are based on all the observations)

3. It should be rigidly defined (except Mode).

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CA FOUNDATION STATISTICS

4. It should not be affected by extreme values ( Median & Mode are not affected by
extreme values.

5. It should have sampling stability or it should not be affected by sampling fluctuations.


(A.M, G.M, H.M. not affected).

6. It should be capable of further algebraic treatment. (AM,GM,HM)

ARITHMETIC MEAN
• It is the best measure of central tendency and most commonly used measure
• The only drawback of this measure is that it gets highly affected by presence of extreme
values in the distribution.
• Calculation of AM
1. For Simple series: A.M. =

2.

3. For Grouped Frequency Distribution:


a) Direct Method

Where, x = mid - values or class marks



b) Method of Assumed Mean using Step Deviation (By changing of origin and scale)

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CA FOUNDATION STATISTICS

Where,
X = mid-values or original values if it is a discreet series
a = Assumed Mean i.e., a value arbitrarily chosen from mid-values or any other
values
I = class width or any arbitrary value

PROPERTIES
1. If all values of the variable are constant, then AM is constant.

2. ; Thus, Sum of the observations = (no. of observations) x (average).

3. Sum of deviations of values from their arithmetic mean is always zero.

4. When the values of x are equi-distant, then AM =

5. If the frequencies of variable increases or decreases by the same proportion, the value of
AM will remain unaltered.

6. Weighted AM of first “n” natural numbers, when the values are equal to their
corresponding weights, will be given by

7. Sum of squares of deviation is minimum when the deviation is taken from AM.

8. AM is dependent on the change of origin and scale.


If Y = a bx,
then,

9. Formula for calculating Combined Mean is given by:

Where,
= mean of the first group
= mean of the second group
= number of samples in the first group
= number of samples in the second group

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GEOMETRIC MEAN (GM)

1.

2.

3. = Product of the observation

4. It is capable of further algebraic treatment.

5. It is less affected by sampling fluctuations compare to mode and median.

6. It is less affected by extreme values compare to AM.

7. GM cannot be calculated if any variable assumes value 0 or negative value.

8. GM is particularly useful in cases where we have to find out average rates or ratios of
quantities which are changing at a cumulative rate, i.e., the change is related to the
immediate preceding data. For example, average rate of depreciation by WDV method or
average rate of growth of population.

9. GM is extensively used in the construction of index numbers.

10. GM is the most difficult average to calculate and understand because it involves the
knowledge of logarithms.

11. Logarithm of GM of “n” observations is equal to the AM of the logarithm of these “n”
observations.

12. GM is based on all observations

13. If all the observations assumed by a variable constant, say K, then the GM of the
observations is also K

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CA FOUNDATION STATISTICS

14. GM of the product of two variables is the product of their GM’s i.e.,
if z = xy,
then GM of z = (GM of x) . (GM of y)

15. GM of the ratio of two variables is the ratio of GM’s of two variables i.e.,
if z = x/y
then GM of

n1 log G1 + n2 log G2
16. Combined GM: log G12
n1 + n2

HARMONIC MEAN (HM)


1.

2.


3. HM cannot be calculated if any variable assumes value 0, as inverse of 0 is undefined.

4. HM has a very restricted use, and they are usually used for calculating average speed,
average rates of quantities, etc.

5. It is based on all the values.

6. It is capable of further algebraic treatment.

7. It is less affected by extreme values and sampling fluctuations compare to AM and GM.

8. If y = ax then
HM(y) = a HM (x) | GM(y) = a GM (x)
9. If all the observations are constant, HM is constant

10. Combined H.M:


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CA FOUNDATION STATISTICS

Rule for using AM and HM

When the average to be calculated is of the form a/b, where a and b are different quantities
then
i. Use HM when ‘a’ is constant
ii. Use AM when ‘b’ is constant

For eg,
Avg. speed = ? Distance = same (given)
Distance
Use H. M we know that Speed
Time
Avg. speed = ? Time = same (given)
Use A. M

Relation between AM, GM & HM


1. If the values are equal,
AM = GM = HM.

2. If the values are distinct,


AM > GM > HM.

3.

MEDIAN:
1. Median is defined as the positional average and is regarded as the second best average
after arithmetic mean.

2. Median is suitable when there is a wide range of variation in data or distribution pattern
is to be studied at a varying level.

3. Median is suitable for qualitative data.

4. Median is suitable for distributions with open ends.

5. Median can be located graphically using Cumulative Frequency Polygon or Ogives.

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CA FOUNDATION STATISTICS

6. The absolute sum of deviations is minimum when the deviations are taken from Median,
and this property of Median is known as “Minimal Property”.

7. Median is dependent on change of Origin & Scale.


If Y = a bx
Then, Me (Y) = a bMe(x)

Calculation
For Simple Series
Median = value corresponding to (n + 1)/2th term in the distribution

Note 1: Arrange the data in the ascending or descending order

Note 2: If the value of (n+1)/2th term is a fraction then the average of the values within which
it is lying is the median.

Note 3: If n is odd median = simply the middle most value and if n is even median = average
of 2 mid values

For Simple Frequency Distribution:


Median = value corresponding to the (N+1)/2th Term in the ‘less than’ type Cumulative
Frequency column where,
N = Total Frequency

For Grouped Frequency Distribution:


l1 = Lower boundary of the median class i.e., the class where Cumulative Frequency N/2
falls
N = Total frequency
F = Cumulative frequency of the pre-median class.
fm = Frequency of the median class
i = Width of the median class

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CA FOUNDATION STATISTICS

MODE
1. Mode is that value of the distribution which occurs with highest frequency.

2. Mode is a crude method of finding out average and it provides only a Bird’s Eye view of
the distribution.

3. It is the most unstable average and the quickest method of finding out the average where
we need to find out the most common value of the distribution

4. It is not affected by extreme values but it is more affected by sampling fluctuations


compare to AM, GM, HM.

5. In case when distribution is Multimodal, mode is ill-defined

6. Mode is dependent on the change of origin and scale

7. If y = a bx then, Mo(y) = a b Mo(x)

8. Mode can be located graphically using Histogram or Area Diagram or Frequency


Diagram.

9. Mode does not take into account all of the observations.

10. When the classes are of unequal width, we consider frequency densities instead of class
frequency to locate mode,
where frequency density = Class Frequency
Width of the Class

Calculation of Mode for Simple Series:


1. For simple series, there is no mode as all values occur with frequency = 1, i.e., same
frequency.

2. For simple frequency distribution Mode can be calculated by mere inspection. The variable
occurring with the highest frequency is the mode of the distribution. A distribution can be
uni-modal or bi-modal, but not multi-modal.

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CA FOUNDATION STATISTICS

o If only one value of variable occurs with the highest frequency, then there is only one mode.
o If two values of variable occurs with the same highest frequency, then there are two modes.
o If all values of variable occurs with same frequency, then there is no mode.
o If more than two values of variable occurs with same highest frequency, then also
there is no mode.

Calculation of Mode for Grouped Frequency Distribution:

L1 = Lower boundary of the modal class i.e., the class with highest frequency.
fm = Frequency of the modal class
f1 = Frequency of the pre-modal class
f2 = Frequency of the post-modal class
i = Class width

Concept of Symmetrical & Asymmetrical Distribution:

1. When in a distribution all the measures of central tendencies are equal, the distribution is
said to be symmetrical.

2. For symmetrical distribution; Mean = Median = Mode.

3. Any deviation from this symmetry makes the distribution asymmetrical or skewed.

4. For moderately skewed distribution: Mean – Mode = 3(Mean – Median)

OTHER PARTITION VALUES (FRACTILES)

Partition values divides distribution in equal parts.

• Quartiles
o There are 3 quartiles (Q1, Q2, Q3), which divides the distribution in 4 equal parts
representing 25%, 50% and 75% of the data respectively.

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CA FOUNDATION STATISTICS

o Q2 is nothing but the median of the data.



o For symmetrical data, Q2 is simple average of the extreme quartiles Q1 (lower
quartile) and Q3 (upper quartile).

• Deciles
o There are 9 deciles (D1, D2, ......, D9), which divides the distribution in 10 equal parts
representing 10%, 20% ....... 90% of the data respectively.

o D5 is nothing but the median of the data.

• Percentiles
o There are 99 percentiles (P1, P2, ......, P99), which divides the distribution in 100 equal
parts representing 1%, 2% ..... 99% of the data respectively.

o P50 is nothing but the median of the data

• Note
o All partition values are dependent on the change of Origin and Scale.

o All partition values can be calculated graphically through Cumulative Frequency


Polygon or ogives.

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CA FOUNDATION STATISTICS

Calculation of Partition Values

Type of Series Quartiles Deciles Percentiles


Simple Series

Simple
Frequency Dist

Group
Frequency Dist

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CLASSWORK SECTION

AIRHTEMATIC MEAN

1. Find the arithmetic mean of the numbers 3, 5, 7, 9, .... 47.


a) 24 b) 25 c) 27 d) 31

2. Mean of 0, 3, 5, 6, 7, 9, 12, 0, 2 is:


a) 4.89 b) 5.7 c) 5.6 d) 6.5

3. Find the arithmetic mean of the natural numbers from 1, 2, 3, ...., n.


a) n b) (n + 1) c) (n + 1)/2 d) None of the above

4. If the AM of 3, 5, x, 12, 17 be 9, find the value of x.


a) 5 b) 6 c) 7 d) 8

5. The arithmetic mean of 8, 1, 6 with weights 3, 2, 5 respectively is:


a) 5 b) 5.6 c) 6 d) 4.6

6. If a variable assumes the values 1, 2, 3, 4, 5 with frequencies 1, 2, 3, 4, 5 respectively,


find its arithmetic mean.
a) 4.5 b) 4 c) 5 d) 3.67

7. If there are two groups containing 30 and 20 observation and having 50 and 60 as
arithmetic means, then the combined arithmetic mean is:
a) 52 b) 54 c) 55 d) 56

8. The average weight of students in a class of 35 students is 40 kg. If the weight of


the teacher be included, the average rises by (1/2) kg; the weight of the teacher is :
(a) 40.5 kg (b) 50 kg (c) 41 kg (d) 58 kg

9. The average salary of a group of unskilled workers is ` 10,000 and that of a group
of skilled workers is ` 15,000. If the combined salary is ` 12,000, then what is the
percentage of skilled workers?
(a) 40% (b) 50% (c) 60% (d) none of these

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10. If the relationship between two variables u and v are given by 2u + v + 7 = 0, and if
AM of u is 10, then the AM of v is:
a) 17 b) –17 c) 27 d) – 27

11. The arithmetic mean of a variable y is 10. Find the mean of the variable 5y – 10.
a) 50 b) 40 c) 25 d) 30

GEOMETRIC MEAN

12. Find the Geometric mean of : 8, 4, 2.


a) 2 b) 4 c) 8 d) None of the above

13. Find the GM of the following: 3, -2, 4, 0, 5.


a) 2 b) 3 c) 1 d) cannot be determined

14. If GM of x is 10 and GM of y is 15, then the GM of xy is:


a) 150 b) Log 10 x Log 15
c) Log 150 d) None of these

15. The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for
3 consecutive year respectively. What is the average yield percent on the total sum
invested.
(a) 3.83% b) 4.83% c) 2.83% d) 3.99%

16. What is the GM for the numbers 8, 24 and 40?
3
(a) 24 (b) 12 (c) 8 x (d) 10

HARMONIC MEAN

17. The harmonic mean for the numbers 2, 3, 5 is


(a) 2.00 (b) 3.33 (c) 2.90 (d)

18. What is the HM of 1,1/2, 1/3,... .... ..... .....1/n?


(a) n (b) 2n (c) (d)

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CA FOUNDATION STATISTICS

19. An aeroplane flies from A to B at the rate of 500 km/hour and comes back from B
to A at the rate of 700 km/hour. The average speed of the aeroplane is
(a) 600 km. per hour (b) 583.33 km. per hour
(c) 100 km. per hour (d) 620 km. per hour.

20. The interest paid on each of three different sums of money yielding 3%, 4%, and 5%
simple interest p.a. respectively is the same. What is the average yield percent on
the total sum invested.
a) 3.83% b) 4.83% c) 2.83% d) None of these

21. If there are two groups with 75 and 65 as harmonic means and containing 15 and
13 observation then the combined HM is given by
(a) 65 (b) 70.36 (c) 70 (d) 71.

COMBINED PROPERTIES OF AM, GM AND HM

22. If the AM and HM for two numbers are 5 and 3.2 respectively then the GM will be
(a) 16.00 (b) 4.10 (c) 4.05 (d) 4.00.

23. If the AM and GM for 10 observations are both 15, then the value of HM is
(a) Less than 15 (b) More than 15
(c) 15 (d) Can not be determined

24. If the AM and GM for two numbers are 6.50 and 6 respectively then the two numbers
(a) 6 and 7 (b) 9 and 4 (c) 10 and 3 (d) 8 and 5.

MEDIAN

25. Find the median of the following numbers: 2, 5, 8, 4, 9, 6, 7.


a) 9 b) 6 c) 8 d) None of the above

26. Find the median of the following numbers: 5, 8, 6, 9, 11, 4.


a) 6 b) 7 c) 8 d) None of the above

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27. Calculate median for the following data :


No. of students 6 4 16 7 8 2
Marks 20 9 25 50 40 80
a) 20 b) 25 c) 35 d) 28

28. Two variables x and y are given by y = 2x – 3. If the median of x is 20, what is the
median of y?
a) 20 b) 37 c) 40 d) 35

PARTITION VALUE

29. What is the value of the first quartile for observations 15, 18, 10, 20, 23, 28, 12, 16?
(a) 17 (b) 16 (c) 12.75 (d) 12

30. The third decile for the numbers 15, 10, 20, 25, 18, 11, 9, 12 is
(a) 13 (b) 10.70 (c) 11 (d) 11.50

MODE

31. The mode of the following observations is: 4, 3, 2, 5, 3, 4, 5, 3, 7, 3, 2, 6


a) 2 b) 3 c) 4 d) 6

32. If x and y are related by x–y–10 = 0 and mode of x is known to be 23, then the mode
of y is
(a) 20 (b) 13 (c) 3 (d) 23.

COMBINED PROPERTIES OF AM, MEDIAN AND MODE

33. If arithmetic mean is 26.8, median is 27.9, then what is the value of mode?
a) 29 b) 30.1 c) 31.1 d) 29.9

34. If the Mean and Mode of a certain set of numbers be 60.4 and 50.2 respectively, find
approximately the value of the Median.
a) 55 b) 56 c) 57 d) 58

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MISCELLANEOUS SUM

35. What is the value of mean and median for the following data:
Marks: 5-14 15-24 25-34 35-44 45-54 55-64
No. of 10 18 32 26 14 10
Students:
add 5+14=19, then 19/2=9.5 So, 9.5 is the mid value for mean
(a) 30 and 28 (b) 29 and 30
(c) 33.68 and 32.94 (d) 34.21 and 33.18

36. The mean and mode for the following frequency distribution
Class 350-369 370-389 390-409 410-429 430-449 450-469
interval :
Frequency: 15 27 31 19 13 6
are
(a) 400 and 390 (b) 400.58 and 390
(c) 400.58 and 394.50 (d) 400 and 394.

37. The median and modal profits for the following data
Profit in ‘000 `: below 5 below 10 below below 20 below 25 below 30
15
No. of firms: 10 25 45 55 62 65
are
(a) 11.60 and 11.50 (b) ` 11556 and ` 11267
(c) ` 11875 and ` 11667 (d) 11.50 and 11.67.

38. Following is an incomplete distribution having modal mark as 44


Marks : 0–20 20–40 40–60 60–80 80–100
No. of 5 18 ? 12 5
students :
What would be the mean marks?
(i) 45 (ii) 46 (iii) 47 (iv) 48

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CA FOUNDATION STATISTICS

39. The third quartile and 65th percentile for the following data are
Profits in ‘000 : less than 10 10–19 20–29 30–39 40–49 50–59
No. of firms: 5 18 38 20 9 2

(a) ` 33,500 and ` 29,184 (b) ` 33,000 and ` 28,680


(c) ` 33,600 and ` 29,000 (d) ` 33,250 and ` 29,250.

40. For the following incomplete distribution of marks of 100 pupils, median mark is
known to be 32.
Marks: 0–10 10–20 20–30 30–40 40–50 50–60
No. of Students: 10 - 25 30 - 10
What is the mean mark?
(a) 32 (b) 31 (c) 31.30 (d) 31.50

THEORETICAL ASPECTS

41. Measures of central tendency for a given set of observations measures


(a) The scatterness of the observations
(b) The central location of the observations
(c) Both (a) and (b)
(d) None of these.

42. While computing the AM from a grouped frequency distribution, we assume that
(a) The classes are of equal length
(b) The classes have equal frequency
(c) All the values of a class are equal to the mid-value of that class
(d) None of these.

43. Which of the following statements is wrong?


(a) Mean is rigidly defined
(b) Mean is not affected due to extreme values.
(c) Mean has some mathematical properties
(d) All these

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CA FOUNDATION STATISTICS

44. Which of the following statements is true?


(a) Usually mean is the best measure of central tendency
(b) Usually median is the best measure of central tendency
(c) Usually mode is the best measure of central tendency
(d) Normally, GM is the best measure of central tendency

45. For open-end classification, which of the following is the best measure of central
tendency?
(a) AM (b) GM (c) Median (d) Mode

46. The presence of extreme observations does not affect


(a) AM (b) Median (c) Mode (d) (b) and (c) both

47. In case of an even number of observations which of the following is median?


(a) Any of the two middle-most value
(b) The simple average of these two middle values
(c) The weighted average of these two middle values
(d) Any of these

48. The most commonly used measure of central tendency is


(a) AM (b) Median (c) Mode (d) Both GM and HM.

49. Which one of the following is not uniquely defined?


(a) Mean (b) Median (c) Mode (d) All of these measures

50. Which of the following measure of the central tendency is difficult to compute?
(a) Mean (b) Median (c) Mode (d) GM

51. Which measure(s) of central tendency is(are) considered for finding the average rates?
(a) AM (b) GM (c) HM (d) Both (b) and (c)

52. For a moderately skewed distribution, which of he following relationship holds?


(a) Mean – Mode = 3 (Mean – Median)
(b) Median – Mode = 3 (Mean – Median)
(c) Mean – Median = 3 (Mean – Mode)
(d) Mean – Median = 3 (Median – Mode)

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CA FOUNDATION STATISTICS

53. Weighted averages are considered when


(a) The data are not classified
(b) The data are put in the form of grouped frequency distribution
(c) All the observations are not of equal importance
(d) Both (a) and (c).

54. Which of the following results hold for a set of distinct positive observations?
(a) AM GM HM (b) HM GM AM
(c) AM > GM > HM (d) GM > AM > HM

55. When a firm registers both profits and losses, which of the following measure of
central tendency cannot be considered?
(a) AM (b) GM (c) Median (d) Mode

56. Quartiles are the values dividing a given set of observations into
(a) Two equal parts (b) Four equal parts
(c) Five equal parts (d) None of these

57. Quartiles can be determined graphically using


(a) Histogram (b) Frequency Polygon
(c) Ogive (d) Pie chart.

58. Which of the following measure(s) possesses (possess) mathematical properties?


(a) AM (b) GM (c) HM (d) All of these

59. Which of the following measure(s) satisfies (satisfy) a linear relationship between
two variables?
(a) Mean (b) Median (c) Mode (d) All of these

60. Which of the following measures of central tendency is based on only fifty percent
of the central values?
(a) Mean (b) Median (c) Mode (d) Both (a) and (b)

61. In the formula, Mode = L1 + (d1 X c)/ (d1 + d2 ), d1 is the difference of frequencies in
the modal class & the __________ class.
(a) preceding (b) following (c) both (d) none

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62. In the formula, Mode = L1 + (d1 X c)/ (d1 + d2), d2 is the difference of frequencies in the
modal class & the ———————— class.
(a) preceding (b) succeeding (c) both (d) none

63. —————— of a set of observations is defined to be their sum, divided by the no. of
observations.
(a) H.M (b) G.M (c) A.M (d) none

64. The sum of the squares of deviations of a set of observations has the smallest
value, when the deviations are taken from their
(a) A.M (b) H.M (c) G.M (d) none

65. ———— is equal to the value corresponding to cumulative frequency 3 (N + 1)/4 from
simple frequency distribution
(a) Median (b) 1st quartile
(c) 3rd quartile (d) 1st decile

66. ———— is equal to the value corresponding to cumulative frequency k (N + 1)/10


from simple frequency distribution
(a) Median (b) kth decile
(c) kth percentile (d) none

67. For 899, 999, 391, 384, 590, 480, 485, 760, 111, 240
Rank of median is
(a) 2.75 (b) 5.5 (c) 8.25 (d) none

68. The deviations from median are ——————— if negative signs are ignored as compared
to other measures of central tendency.
(a) minimum (b) maximum (c) same (d) none

69. The average discovers


(a) uniformity in variability (b) variability in uniformity of distribution
(c) both (d) none

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ANSWERS - SUMS ANSWERS - THEORITICAL ASPECTS


Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 b 21 c 41 b 61 a
2 a 22 d 42 c 62 b
3 c 23 c 43 b 63 c
4 d 24 b 44 a 64 a
5 b 25 b 45 c 65 c
6 d 26 b 46 d 66 b
7 b 27 b 47 b 67 b
8 d 28 b 48 a 68 a
9 a 29 c 49 c 69 a
10 d 30 b 50 d
11 b 31 b 51 d
12 b 32 b 52 a
13 d 33 b 53 c
14 a 34 c 54 c
15 d 35 c 55 b
16 c 36 c 56 b
17 c 37 c 57 c
18 c 38 d 58 d
19 b 39 a 59 d
20 a 40 c 60 b

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HOMEWORK SECTION

1. If x and y are related by x – y – 10 = 0 and mode of x is known to be 23, then the


mode of y is
(a) 20 (b) 13 (c) 3 (d) 23

2. A man travels at a speed of 20 km/hr and then returns at a speed of 30 km/hr. His
average speed of the whole journey is:
(a) 25 km/hr (b) 24.5 km/hr
(c) 24 km/hr (d) none

3. The median of the data 13, 8, 11, 6, 4, 15, 2, 18, is


(a) 5 (b) 8 (c) 11 (d) 9.5

4. The sum of the squares of deviations of a set of observations has the smallest
value, when the deviations are taken from their
(a) A.M. (b) H.M. (c) G.M. (d) None

5. Which of the following result hold for a set of distinct positive observations?
(a) A.M. G.M. H.M.
(b) G.M. > A.M. > H.M.
(c) G.M. A.M. H.M.
(d) A.M. > G.M. > H.M.

6. If the A.M. and H.M. for two numbers are 5 and 3.2 respectively then the G.M. will
be
(a) 4.05 (b) 16 (c) 4 (d) 4.10

7. An aeroplane flies from A to B at the rate of 500 km/hr and comes back from B to
A at the rate of 700 km/hr. The average speed of the aeroplane is:
(a) 600 km/hr (b) 583.33 km/hr
(c) km/hr (d) 620 km/hr

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8. For a moderately skewed distribution, which of the following relationship holds?


(a) Mean – Median = 3 (Mean – Mode)
(b) Median – Mode = 3 (Mean – Median)
(c) Mean – Mode = 3 (Mean – Median)
(d) Mean – Median = 3 (Mean – Mode)

9. ____ & ____ are called ratio averages:


(a) H.M. & G.M. (b) H.M. & A.M.
(c) A.M. & G.M. (d) None

10. Extreme values have ____ effect on mode.


(a)
High (b) Low
(c)
No (d) None of these

11. The mean salary for a group of 40 female workers is ` 5200 per month and that for
a group of 60 male workers is ` 6800 per month. What is the combined salary?
(a)
` 6160 (b) ` 6280
(c) ` 6890 (d) ` 6920

12. If there are two groups with 75 and 65 as harmonic means and containing 15 and
13 observations, then the combined H.M. is given by:
(a) 70 (b) 80 (c) 70.35 (d) 69.48

13. The G.M. of 4, 6 and 8 is:


(a) 4.77 (b) 5.32 (c) 6.14 (d) 5.77

14. G.M. is a better measure than others when


(a) ratios and percentages are given
(b) interval of scale is given
(c) Both (a) and (b)
(d) Either (a) or (b)

15. The median of x, is 10. Find where x > 0


(a) 24 (b) 32 (c) 8 (d) 16

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16. The average salary of 50 men was ` 80 but it was found that salary of 2 of them
were ` 46 and ` 28 which was wrongly taken as ` 64 and ` 82. The revised average
salary is:
(a)
` 80 (b) ` 78.56 (c) ` 85.26 (d) ` 82.92

17. If A be the A.M. of two positive unequal quantities X and Y and G be their G.M. then:
(a) A < G (b) A>G
(c) A G (d) A G

18. When mean is 3.57 and mode is 2.13 then the value of median is _____.
(a)
3.09 (b) 5.01
(c)
4.01 (d) None of these

19. The harmonic mean of 1, 1/2, 1/3 . . . 1/n is


(a) 1/(n + 1) (b) 2/(n + 1)
(c) (n + 1)/2 (d) 1/(n – 1)

20. The mean weight of 15 students is 110 kg. The mean weight of 5 of them is 100
kg and of another five students is 125 kg. then the mean weight of the remaining
students is:
(a)
120 (b) 105
(c)
115 (d) none of these

21. In a class of 11 students, 3 students were failed in a test. 8 students who passed
secured 10, 11, 20, 15, 12, 14, 26 and 24 marks respectively. What will be the
median marks of the students:
(a) 12 (b) 15 (c) 13 (d) 13.5

22. A lady travel at a speed of 20 km/h and returned at quicker speed. If her average
speed of the whole journey is 24 km/hr, find the speed of return journey (in km/h)
(a) 25 (b) 30 (c) 35 (d) 38

23. Let the mean of the variable ‘x’ be 50, then the mean of u = 10 + 5x will be :
(a) 250 (b) 260 (c) 265 (d) 273

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24. If the difference between mean and Mode is 63, then the difference between Mean
and Medium will be ____
(a) 63 (b) 31.5 (c) 21 (d) None of the above

25. If the Arithmetic mean between two numbers is 64 and the Geometric mean between
them is 16. The Harmonic Mean between them is ____
(a) 64 (b) 4 (c) 16 (d) 40

26. The average of 5 quantities is 6 and the average of 3 is 8 what is the average of the
remaining two.
(a) 4 (b) 5 (c) 3 (d) 3.5

27. The median of following numbers, which are given is ascending order is 25. Find the
value of X.
11, 13, 15, 19, (x + 2), (x + 4), 30, 35, 39, 46
(a) 21 (b) 20 (c) 15 (d) 30

28. The average age of a group of 10 students was 20 years. The average age increased
two years when two new students joined the group. What is the average age of two
new students who joined the group?
(a)
22 years (b) 30 years
(c)
20 years (d) 32 years

29. Geometric Mean of three observations 40, 50 and X is 10. The value of X is
(a)
2 (b) 4
(c)
1/2 (d) None of the above

30. The mean of first three term is 14 and mean of next two terms is 18. Then mean of
all five term is:
(a) 14.5 (b) 15 (c) 14 (d) 15.6

31. The mean salary of a group of 50 persons is ` 5850. Later on it is discovered that
the salary of one employee has been wrongly taken as ` 8000 instead of ` 7800.
The corrected mean salary is
(a)
` 5854 (b) ` 5846
(c)
` 5650 (d) None of the above

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32. If the mode of a data is 18 and mean is 24, then median is


(a) 18 (b) 24 (c) 22 (d) 21

33. The point of intersection of the “less than” and “more than” ogives correspond to
(a)
Mean (b) Mode
(c)
Median (d) 10th Percentile

34. A man travels from Agra to Gwalior at an average speed of 30 km per hour and
back at an average speed of 60 km per hour. What is his average speed?
(a) 38 km per hour (b) 40 km per hour
(c) 45 km per hour (d) 35 km per hour

35. Which of the following measures of central tendency cannot be calculated by


graphical method?
(a)
Mean (b) Mode
(c)
Median (d) Quartile

36. Geometric mean of 8, 4, 2 is


(a) 4 (b) 2 (c) 8 (d) none of these

37. The average age of 15 students of a class is 15 years. Out of them, the average age
of 5 students is 14 years and that of the other 9 students is 16 years. The age of the
15th student is:
(a)
11 years (b) 14 years
(c)
15 years (d) None of these

38. Averages whose value can be determined graphically?


(a)
Mode, Median (b) Mean, Mode
(c) Mean, Median (d) None of the above

39. Which of the following statements is true?


(a) Median is based on all the observations
(b) The mode is the mid value
(c) The median is the second quartile
(d) The mode is the fifth decile

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40. The mean of the following data is 6. Find the value of ‘P’

x 2 4 6 10 P+5
f 3 2 3 1 2
(a) 4 (b) 6 (c) 8 (d) 7

41. The third decile for the numbers 15, 10, 20, 25, 18, 11, 9, 12, is :

(a)
13 (b)
10.70
(c)11 (d)
11.50

42. A random variable X has uniform distribution on the interval (–3, 7). The mean of
the distribution is:
(a) 2 (b) 4 (c) 5 (d) 6

43. If the arithmetic mean of two numbers is 10 and the geometric mean of these
numbers is 8, then the harmonic mean is:
(a) 9 (b) 8.9 (c) 6.4 (d) None of these

44. The harmonic mean H of two numbers is 4 and their arithmetic mean A and the
geometric mean G satisfy the equation 2A + G2 = 27, then the numbers are
(a) (1, 3) (b) (9, 5) (c) (6, 3) (d) (12, 7)

45. Quartiles can be determined graphically using:


(a)
Histogram (b) Frequency polygon
(c)
Ogive curve (d) Pie chart

46. In a class of 50 students, 10 have failed and their average marks in 2.5. The total
marks secured by the entire class were 281. The average marks who have passed is:
(a)
5.32 (b) 7.25
(c)
6.40 (d) None of the above

47. If the mean of two numbers is 30 and geometric mean is 24 then what will be these
two numbers?
(a) 36 and 24 (b) 30 and 30
(c) 48 and 12 (d) None of these

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48. For moderately skewed distribution of marks in commerce for a group of 200
students the mean marks and mode marks were found to be 55.60 and 46. What is
the median marks?
(a)
55.5 (b) 60.5
(c)
52.4 (d) None of these

49. Mean for the data 6, 4, 1, 6, 5, 10, 3 is 5 when each observation added by 2, what
is mean of the data
(a) 5 (b) 6 (c) 7 (d) 10

50. The average of 10 observations is 14.4. If the average of first 4 observations is 16.5.
The average of remaining 6 observations is:
(a) 13.6 (b) 13.0 (c) 13.2 (d) 12.5

51. The ordering of a particular design of a cloth show room, a ____ size be more
appropriate
(a) median (b) mean (c) mode (d) all of these

52. The rates of returns from three different shares are 100%, 200% and 400%
respectively. The average rate of return will be :
(a) 350% (b) 233.33% (c) 200% (d) 300%

53. If geometric mean is 6 and arithmetic mean is 6.5, then harmonic mean will be:
(a)
(b)

(c) (d) None of the above

54. A company’s past 10 years average earning is ` 40 crores. To have the same average
earning for 11 years including these 10 years, how much earning must be made by
the company in the eleventh year?
(a)
` 40 crores (b) ` crores
(c) More than ` 40 crores (d) None of these

55. A person purchases 5 rupees worth of eggs from 100 different markets. You are to
find the average number of eggs per rupee purchased from all the markets taken

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CA FOUNDATION STATISTICS

together. The suitable average in this case is:


(a)
A.M. (b) G.M.
(c)
H.M. (d) None of the above

56. _____ is the reciprocal of the AM of the reciprocal of observations.


(a)
HM (b) GM
(c) Both (a) and (b) (d) None of the above

57. If the mean value of seven numbers 7, 9, 12, X, 4, 11 and 5 is 9, then the missing
number X will be:
(a) 13 (b) 14 (c) 15 (d) 8

58. When all observations occur with equal frequency ______ does not exist.
(a)
median (b) mode
(c)
mean (d) None of the above

59. If the variables x and z are so related that z = ax + b for each x = x1 where a and b
are constant, then
(a)
True (b) false
(c)
both (d) none

60. If each item is reduced by 15 A.M. is


(a) reduced by 15 (b) increased by 15
(c)
reduced by 10 (d) none

61. For 899, 999, 391, 384, 590, 480, 485, 760, 111, 240 Rank of median is
(a) 2.75 (b) 5.5 (c) 8.25 (d) none

62. The average of a series of overlapping averages, each of which is based on a certain
number of item within a series is know as
(a)
Moving average (b) Weighted average
(c)
Simple average (d) None

63. The median of the data 5, 6, 7, 7, 8, 9, 10, 11, 11, 12, 15, 18 and 19 is
(a) 10.5 (b) 10 (c) 11 (d) 11.5

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64. The mean of 20 items of a data is 5 and if each item is multiplied by 3, then the new
mean will be
(a) 5 (b) 10 (c) 15 (d) 20

65. The Geometric mean of 3, 6, 24 and 48 is


(a) 8 (b) 12 (c) 24 (d) 6

66. The Algebraic sum of the deviation of a set of values from their arithmetic mean is
(a) > 0 (b) = 0 (c) < 0 (d) None of the above

67. Which one of the following is not a central tendency?


(a)
Mean Deviation (b) Arithmetic mean
(c)
Median (d) Mode

68. If total frequencies of three series are 50, 60 and 90 and their means are 12, 15 and
20 respectively, then the mean of their composite series is
(a) 16 (b) 15.5 (c) 16.5 (d) 14.5

69. If in a moderately skewed distribution the values of mode and mean are 32.1 and
35.4 respectively, then the value of the median is
(a) 34.3 (b) 33.3 (c) 34 (d) 33

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CA FOUNDATION STATISTICS

ANSWER
1 b 21 a 41 b 61 b
2 c 22 b 42 a 62 a
3 d 23 b 43 c 63 b
4 a 24 c 44 c 64 c
5 d 25 b 45 c 65 b
6 c 26 c 46 c 66 b
7 b 27 a 47 c 67 a
8 c 28 d 48 c 68 c
9 a 29 c 49 c 69 a
10 c 30 d 50 b
11 a 31 b 51 c
12 a 32 c 52 c
13 d 33 c 53 a
14 a 34 b 54 a
15 a 35 a 55 c
16 b 36 a 56 a
17 b 37 a 57 c
18 a 38 a 58 b
19 b 39 c 59 a
20 b 40 d 60 a

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CA FOUNDATION STATISTICS

HOMEWORK SOLUTION

1. (b) X – Y – 10 = 0
Mode(X) – Mode(Y) – 10 = 0
Mode(y) = Mode(X) – 10 = 23 – 10 = 13

2. (c) Average speed is the HM of 20 and 30.


AS = (2*20*30)/(20+30) = 1200/50 = 24

3. (d) Arranging the given data in ascending order: 2, 4, 6, 8, 11, 13, 15, 18
Median is the value of (8 + 1)/2 = 4.5th item = ½(4th item + 5th item) = ½(8+11)
= 9.5

4. (a) The sum of Squares of deviations is least, when it is taken from its AM.

5. (d) For set of distinct positive observations: AM > GM > HM

6. (c) GM2 = AM * HM = 5 * 3.2 = 16


GM = 4

7. (b) Average Speed is the HM of 500 and 700 = (2*500*700)/(500+700) =


700000/1200 = 583.33

8. (c) For a moderately skewed distribution: Mean – Mode = 3(Mean – Median)

9. (a) HM and GM are known as ratio averages.

10. (c) Extreme values have NO effect on mode.

11. (a) Combined average salary = (40*5200 + 60*6800)/(40 + 60) = 616000/100 =


6160.

12. (a) Combined AM = (15*1/75 + 13*1/65)/(15+13) = 0.4/28


Combined HM = 28/0.4 = 70.

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CA FOUNDATION STATISTICS

13. (d) (Find the cube of the options, the option which gives 192 is the answer)
GM3 = 4*6*8 = 192
GM = 5.77

14. (a) GM is the better measure than others when ratios and percentages are given.

15. (a) Median = ½ (x/2 + x/3) = 5x/12 = 10. Thus, x = 24.

16. (b) Correct Total = (50 * 80) + 46 + 28 – 64 – 82 = 3928


Correct Mean = 3298 / 50 = 78.56

17. (b) For two unequal quantities: A > G

18. (a) Mean – Mode = 3 (Mean – Median)


3Median = 2 Mean + Mode = 2*3.57 + 2.13 = 9.27
Median = 9.27/3 = 3.09

19. (b) HM = n / (1/1 + 1/1/2 + 1/1/3 + .... + 1/1/n) = n/(1 + 2 + 3 + ... + n) = 2/(n+1)

20. (b) Mean of remaining 5 = 1/5 [15*110 – 5*100 – 5*125] = 1/5*525 = 105.

21 (a) Arranging the marks in ascending order: A B C 10 11 12 14 15 20 24 26


Median is the marks of (11 + 1)/2 = 6th student from any corner = 12

22. (b) 24 = 2*20*S / (20 + S)


480 + 24S = 40S
16S = 480
S = 480/16 = 30

23. (b) Mean (U) = 10 + 5.Mean(X) = 10 + 5*50 = 260

24. (c) Mean – Mode = 63 = 3(Mean – Median)


(Mean – Median) = 63/3 = 21

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CA FOUNDATION STATISTICS

25. (b) GM2 = AM * HM


162 = 64 * HM
HM = 256/64 = 4

26. (c) Average of remaining 2 = ½ [5*6 – 3*8] = ½ [ 30 – 24] = 6/2 = 3

27. (a) 11, 13, 15, 19, (x + 4), 30, 35, 39, 46
Median is the 5th value
Rank = N+1 10 5th
2 5

x+ 4= 25
x = 25 – 4
= 21

28. (d) Average age of two new person = ½ [12*22 – 10*20] = ½ (264 – 200) = 32

29. (c) 103 = 40 * 50 * X


X = 1000/2000 = ½

30. (d) Mean = 1/5 [3*14 + 2*18] = 1/5(42 + 36) = 78/5 = 15.6

31. (b) Correct Mean = 1/50 [50*5850 – 8000 + 7800] = 1/50 [292300] = 5846

32. (c) Mean – Mode = 3(Mean – Median)


3Median = 2Mean + Mode = 2*24 + 18 = 66
Median = 66/6 = 22.

33. (c) The point of intersection of the “less than“ and “more than“ Ogives correspond
to the Median of the distribution.

34. (b) Average Speed = (2*30*60)/(30+60) = 3600/90 = 40

35. (a) Mean cannot be calculated graphically.

36. (a) GM3 = 8 * 4 * 2 = 64 = 43


GM = 4.

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CA FOUNDATION STATISTICS

37. (a) The age of 15th student = 15*15 – 5*14 – 9*16 = 225 – 70 – 144 = 11

38. (a) Graphically Median and Mode of a distribution can be calculated.

39. (c) Median is not based on all observations. Mode is the most popular value and
not the mid-value. Median is the second quartile.

40. (d) ∑fx = 2*3 + 4*2 +6*3 + 10*1 + (p+5)*2 = 6+8+18+10+2P+10 = 2P + 52


∑f = 3+2+3+1+2 = 11
6 = (2P + 52)/11
66 = 2P + 52
2P = 14
P = 7.

41. (b) Ascending order: 9, 10, 11, 12, 15, 18, 20, 25
3rd Decile = 3(8 + 1)/10 = 2.7th element = 2nd element + 0.7 (3rd – 2nd) = 10 +
0.7(11 – 10) = 10.7

42. (a) Mean = (-3 + 7)/2 = 4/2 = 2.

43. (c) 82 = 10 * HM
HM = 64/10 = 6.4.

44. (c) 2A + G2 = 2A + A*H = 2A + 4A = 6A = 27. A = 27/6 = 4.5


G2 = 4 * 4.5 = 18
First number = 4.5 + √(4.52 – 18) = 4.5 + 1.5 = 6
Second number = 4.5 - √(4.52 – 18) = 4.5 - 1.5 = 3

45. (c) Quartiles are calculated graphically using Ogives.

46. (c) Average marks of students who have passed = 1/40[281 – 10*2.5] = 1/40(256)
= 6.4.

47. (c) X = 30 + √(302 - 242) = 30 + 18 = 48


Y = 30 – 18 = 12

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CA FOUNDATION STATISTICS

48. (c) 3Median = 2Mean + Mode = 2*55.60 + 46 = 157.2


Median = 157.2/3 = 52.4

49. (c) New Mean = 5 + 2 = 7.

50. (b) Average of remaining 6 = 1/6 [10*14.4 – 4*16.5] = 1/6[144 – 66] = 78/6 = 13.

51. (c) Mode is an appropriate average for a cloth show room, which shall want to
order that particular design, which sells more.

52. (c) Average rate = GM of rates






= 2 x 100
= 200 %

53. (a) 62 = 6.5 * H


H = 36/6.5 = 62/6.5

54. (a) Earning in the 11th year = 40 crores. (to maintain the average of last 10 years)

55. (a) AM is to be used to find average rate at which eggs are to be purchased.

56. (a) HM is the reciprocal of the AM of the reciprocal of observations.

57. (c) (7 + 9 + 12 + X + 4 + 11 + 5) = 7*9 = 63


48 + X = 63
X = 63 – 48 = 15.

58. (b) When all observations occur with equal frequency, we can’t calculate its Mode.

59. (a) If Z = aX + b, Mean(Z) = a. Mean(X) + b


(As Mean is dependent on both change of scale and change of origin)

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CA FOUNDATION STATISTICS

60. (a) If each item is reduced by 15, AM also reduced by 15.

61. (b) Rank of Median = =5th


Rank of Median is 5

62. (a) Average of a series of overlapping averages, each of which is based on a


certain number of item within a series is known as Moving Averages.

63. (b) 5 6 7 7 8 9 10 11 11 12 15 18 19

value
Median = 10

64. (c) New mean = 5 * 3 = 15

65. (b) G4 = 3 * 6 * 24 * 48 = 20736 = 124


G = 12.

66. (b) The algebraic sum of the deviation of a set of values from their AM is always
zero.

67. (a) Mean Deviation is a measure of dispersion.

68. (c) Mean = (50*12 + 60*15 + 90*20) / (50+60+90) = (600+900+1800)/200 =


3300/200 = 16.5

69. (a) 3Median = 2Mean + Mode = 2*35.4 + 32.1 = 70.8 + 32.1 = 102.9
Median = 102.9/3 = 34.3

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CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 2


30 Marks

1. What is the major assumption we make when computing a mean from grouped
data?
a) No value occurs more than once
b) Each class contains exactly the same number of values
c) All values are discrete
d) Every value in a class is equal to the mid-point

2. Median is:
a) 50th percentile b) 2nd quartile c) 5th decile d) All of the above

3. Suitable average for finding out the mean size of sale of shoes shall be:
a) Arithmetic mean b) Median c) Mode d) None of the above

4. A cyclist goes from a place to another and returns by the same route. He pedals
his way uni-formly with speed U while going and with speed V while returning. The
average speed of his journey is:
a) (U + V)/2 b) 2/(U + V) c) 2UV/(U + V) d) None of the above

5. The mean of the value 1, 2, 3, ...., 120 with respective frequencies F, 2F, 3F,...., 120F
is equal to:
a) (60 + 1)2 b) (240 + 1)/6 c) 60 d) 241/3

6. If the median of four numbers: 3, 4, 8 and X is 5, then what is the value of X?


a) 11 b) 5 c) 10 d) 6

7. Find two positive numbers A and B, the AM of which is 5 and the GM is 4.


a) 2, 8 b) 8, 2 c) 6, 4 d) (a) and (b) both

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CA FOUNDATION STATISTICS

8. Which of the following statement is not CORRECT?


a) In a negatively skewed distribution, the value of mode is greater than the
arithmetic mean.
b) The subtraction of a constant from each item in the data to be averaged,
changes the average.
c) Geometric mean is square root of the product of all observations.
d) The division of a constant from each item in the data to be averaged, changes
the average.

9. Which measure of central tendency is not affected by the extreme values?


a) Arithmetic Mean and Median
b) Median and Mode
c) Mode and Arithmetic Mean
d) Geometric Mean and Harmonic Mean

10. Of the various measure of central tendency, which of the following can be used
when measurement are on an ordinal scale?
a) Arithmetic Mean and Median
b) Mode and Arithmetic Mean
c) Median and Mode
d) All of the above

11. The mean of 15 observations is 15. If the two numbers 18 and 22 are excluded, then
the mean of the remaining numbers is:
a) 10.53 b) 12.49 c) 14.23 d) 15.49

12. While dividing each entry in a data by a non-zero number A, the arithmetic mean
of the new data:
a) Does not change b) Increased
c) Is divided by A d) Is diminished by A

13. If arithmetic mean of two items is 16 and their harmonic mean is 9. Find their
geometric mean.
a) 10 b) 12 c) 14 d) 16

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14. Find the median of 33, 86, 68, 80, 48, 70, 64.
a) 80 b) 68 c) 70 d) 48

15. The mean monthly salary of all employees in a company is Rs. 25,000. The mean
salaries of male and female employees are Rs. 27,000 and Rs. 17,000 respectively,
the percentage of males employed by the company is:
a) 80% b) 20% c) 30% d) 70%

16. The AM of 7, (x – 2), 10, (x + 3) is 9. Find x.


a) 8 b) 9 c) 7 d) None of the above

17. Calculate the geometric mean of 3, 6, 24, 48.


a) 6 b) 12 c) 24 d) None of the above

18. Find the GM of 4, 6, 9 with weight 1, 2, 1 respectively.


a) 6 b) 12 c) 24 d) None of the above

19. If the GM of A, 4, 8 be 6, find the value of A.


a) 6.75 b) 12.25 c) 24.35 d) None of the above

20. The means of two samples of sizes 50 and 100 respectively are 54.1 and 50.3.
Obtain the mean of the sample of size 150 obtained by combining the two samples.
a) 50.47 b) 51.57 c) 52.37 d) 54.48

21. Find the Harmonic Mean of the following numbers: 1. ½, 1/3, ¼.


a) 0.4 b) 0.5 c) 0.25 d) None of the above

22. Find the Mode of the following numbers: 7, 4, 3, 5, 6, 3, 3, 2, 4, 3, 4, 3, 3, 4, 4, 3, 2,


2, 4, 3, 5, 4, 3, 4, 3, 1, 2, 3.
a) 4 b) 3 c) 2 d) None of the above

23. Find the median of 88, 72, 33, 29, 70, 86, 54, 91, 61, 57.
a) 65 b) 66 c) 65.5 d) None of the above

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24. In a moderately symmetric distribution the mode and mean are 12.30 and 18.48
respectively. Find the median.
a) 16 b) 16.42 c) 16.24 d) None of the above

25. The average weight of A, B, C is 45 Kg. If the average weight of A and B be 40 Kg and
that of B and C be 43 Kg, then the weight of B is:
a) 15 Kg b) 20 Kg c) 25 Kg d) 31 Kg

26. The average attendance of a school for the first 3 days of the week is 325 and for
the first 4 days of the week it is 320. The students present on the fourth day were:
a) 305 b) 310 c) 315 d) 325

27. The AM calculated from the following frequency distribution is known to be 67.45.
Find the value of F.
Class Interval 60-62 63-65 66-68 69-71 72-74
Frequency 15 54 F 81 24
a) 120 b) 126 c) 134 d) None of the above

28. The median of the following incomplete frequency distribution is 4. Find the frequency
when X = 8.
X: 1 2 3 4 5 6 7 8
CF: 2 3 4 5 6 7 8 ?
a) 1 b) 2 c) 3 d) 4

29. Calculate the mode of the following frequency distribution:


Class Interval Frequency
0 – 6 13
6 – 12 25
12 – 18 57
18 – 24 79
24 – 30 105
30 – 36 79
36 – 42 57
42 – 48 25
48 – 54 13
a) 27 b) 28 c) 29 d) 31

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CA FOUNDATION STATISTICS

30. The algebraic sum of the deviations of 50 observations measured from 90 is – 110.
Find the AM of the observations.
a) 90 b) 110 c) 88.7 d) 87.8

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EXPLANATORY
ANSWERS

1. While calculating mean from the group distribution, it is assumed that every value
in a class is equal to the mid-point of that class. Option D

2. Median = 50th percentile = 2nd quartile = 5th decile. Option D

3. Mode is the suitable average to find the mean sale of shoes. Option C

4. Average speed is the HM between U and V = 2/(1/U + 1/V) = 2UV/(U + V). Option C

5. ∑FX = (1*F) + (2*2F) + .... + (120*120F) = F(120)(120 + 1)(240 + 1)/6


∑F = F + 2F + 3F + .... + 120F = F(120)(120 + 1)/2
Mean = ∑FX / ∑F = (240 + 1)/3 = 241/3
Option D

6. Median of 4 numbers is 5. The sum of the central 2 values = 5*2 = 10


If we consider 4 and 8 as the middle two numbers, its total is not 10.
Thus 4 + X = 10. X = 6. Option D

7. A = AM + √(AM2 – GM2) = 5 + √(25 – 16) = 8


B = AM – √(AM2 – GM2) = 5 – √(25 – 16) = 2
Both option A and option B are correct. Thus, correct answer is Option D

8. Geometric mean is the nth root of the product of n observations given in the data
set. Option C

9. Both Median and Mode are not affected by the presence of the extreme values.
Option B

10. Arithmetic mean is only possible for cardinal scale. For ordinal scale all partition
and positional values are possible. Option C

11. Mean of remaining = (15*15 – 18 – 22)/13 = 14.23. Option C

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CA FOUNDATION STATISTICS

12. The AM of the new data is also get divided by A. Option C

13. GM2 = AM * HM = 16 * 9 = 144. GM = 12. Option B

14. After arranging: 33, 48, 64, 68, 70, 80, 86. Median is (7 + 1)/2 = 4th item from any
end = 68. Option B

15. 25000(M + F) = 27000M + 17000F


2000M = 8000F; M:F = 4:1. Percentage of males employed = 4/5 * 100 = 80%.
Option A

16. 9*4 = 7 + x – 2 + 10 + x + 3 = 2x + 18; 2x = 18. x = 9. Option B

17. 3*6*24*48 = 34.28. GM = (34.28)1/4 = 3*22 = 12. Option B

4 4
18. GM = 41.62.91 = 1296 = 6. Option A

19. 63=Ax4x8; A = 216/32 = 6.75. Option A

20. Combined Mean = [(54.1*50) + (50.3*100)]/150 = (2705 + 5030)/150 = 51.57. Option


B

21. HM = 4/(1 + 2 + 3 + 4) = 4/10 = 0.40. Option A

22. On observation, value 3 occur maximum number of times. Mode = 3. Option B

23. After arranging: 29, 33, 54, 57, 61, 70, 72, 86, 88, 91. Median is ½ (5th + 6th value)
= ½ (61 + 70) = ½(131) = 65.5. Option C

24. 3(Mean – Median) = (Mean – Mode)


3(18.48 – Median) = (18.48 – 12.30) = 6.18
Median = 18.48 – 2.06 = 16.42. Option B

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CA FOUNDATION STATISTICS

25. A+B+C = 45*3 = 135


A+B = 40*2 = 80
B+C = 43*2 = 86
B = (A+B) + (B+C) – (A+B+C) = 80 + 86 – 135 = 31. Option D

26. Attendance of 4th day = (320 * 4) – (325 * 3) = 1280 – 975 = 305. Option A

27. ∑FX = (15*61)+ (54*64) + (F*67) + (81*70) + (24*73) = 915+3456+67F+5670+1752 =


11793+67F
∑F = 15 + 54 + F + 81 + 24 = 174 + F
67.45 = (11793 + 67F)/(174 + F)
11736.3 + 67.45F = 11793 + 67F
0.45F = 56.7
F = 126. Option B

28. First prepare frequency column from CF column by subtracting values


Option Method
A) Missing frequency = 1
put missing frequency = 1 & apply Median Formula = (N+1)/2 th Term
Answer Matches with given data M = 4
Hence Option A

29. Mode = 24 + (105 – 79)/(210 – 79 – 79) * 6 = 24 + 156/52 = 27. Option A

30. Mean = 90 – 110/50 = 90 – 2.2 = 87.8. Option D

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MEASURES OF DISPERSION
(Average of Second Order)

THEORY
Introduction:
• Dispersion is defined as deviation or scattering of values from their central values i.e,
average (Mean, Median or Mode but preferably Mean or Median)

• Dispersion discovers variability in uniformity.

• In other words, dispersion measures the degree or extent to which the values of a
variable deviate from its average

• Dispersion indicates the degree of heterogeneity among observation and as


heterogeneity increases dispersion increases

• If all values are equal then any measure of dispersion is always zero

• All measures of dispersion are positive

• All measures of dispersions are independent of the change of origin but dependent on the
change of scale

• All pre requisites of a good measure of central tendency are equally applicable for good
measure of dispersion

• Two distributions may have;


i. Same central tendency and same dispersion
ii. Different central tendency but same dispersion
iii. Same central tendency but different dispersion
iv. Different central tendency and different dispersion

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Types of Measures of Dispersion


There are two types of measures of dispersion,

Absolute Measure Relative Measure


a. These measures of dispersion will have a. These are usually expressed as ratios
the same units as those of the variables or percentages and hence unit free
b. Absolute measures are related to the b. Relative measures are used
distribution itself. i) to compare variability between
two or more series.
ii) To check the relative accuracy of
the data

MEASURES OF DISPERSION (AVERAGE OF SECOND ORDER)


A good measure of dispersion should obey conditions similar to those for a satisfactory
average and are as follows :
i. It should be rigidly defined.

ii. It should be based on all observations.

iii. It should be readily comprehensible.

iv. It should be fairly easily calculated.

v. It should affected as little as possible by fluctuations of sampling;

vi. It should readily lend itself to algebraic treatment and

vii. It should be east affected by the presence by extreme values

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CA FOUNDATION STATISTICS

Measure of Dispersion

Absolute Relative


Range Quartile Mean Standard Coefficient Coefficient Coefficient Coefficient

Deviation Deviation Deviation of of of of

or Or Range Quartile Mean Variation

Semi Inter Mean Deviation Deviation

Quartile Absolute

Range Deviation

RANGE
• It is the quickest measure, of finding out Dispersion

• It does not depend on all observations

• It’s a crude method of finding out dispersion and most unreliable

• Range is unaffected by the presence of frequency

• Range is independent of the change of origin but dependent on change of scale

• If y=a±bx
R(y)=|b| ×R(x)

Calculation Of Range:
• For simple series and simple Frequency Distribution :
Range = Highest Value – Lowest Value (H – L).

• For grouped frequency distribution:


o Range = Upper boundary of last class – Lower boundary of 1st class
o Range = Upper Limit of last class – Lower limit of 1st class + 1

• Co-efficient of Range (Relative Range) =

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Quartile Deviation or Semi-inter quartile Range:


• QD is defined as the half of the range between the quartiles

• It is based on the upper and the lower Quartile and covers 50% of the observations.

• It does not depend on all observations

• For distributions with the Open Ends Q.D is the best and only measure of dispersion.

• QD is independent of the change of Origin but dependent on the change of Scale.

• If y=a±bx
QD( y)=|b| ×QD(x)

• Quartile Deviation (QD) = , Where Q3 is the upper quartile and Q1 is the lower
quartile.

• Co-efficient of QD(Relative Measure) =

• For symmetrical distribution; , i.e., median is the average of two


extreme quartiles.

Thus coefficient of QD for symmetrical distribution =

Mean Deviation / Mean Absolute Deviation


• It is based on all observations and hence it provides much better dispersion than
Range and Quartile Deviation

• Mean deviation of a set of values of a variable is defined as the AM of the Absolute


Deviation taken about Mean, Median or Mode.(Preferably AM or Median)

• Absolute Deviation implies Deviation without any regard to sign

• If nothing is specified Mean Deviation will imply Deviation about AM only.

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• Since sum of Deviations is least when Deviations are taken about Median hence MD
about Median will have the least value.

• MD is the independent of the change of origin but dependent on the change of scale

• If y=a±bx
MD( y)=|b| ×MD(x)

• Formula to calculate Mean Deviation:

Simple Series Simple / Grouped


Frequency Distribution


Where n = number of observation
∑f=N = Total frequency
=A.M
M = Median
X=Either actual values of the variables or mid values if it a group frequency distributions

o Coefficient of MD(Relative Measure) =

Standard Deviation
• It is the best measure and the most commonly used Measure of Dispersion.

• It takes into consideration the magnitude of all the observations and gives the
minimum value of dispersion possible.

• SD has all the pre-requisites of a good measure of dispersion, except the fact
that it gets unduly affected by the presence of extreme values,

• It is also known as Root Mean Square Deviation about mean.

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CA FOUNDATION STATISTICS

• It is denoted by

• SD2 = Variance=
• If all observations are equal variance =SD=0

• SD is the independent of the change of origin but dependent on the change of scale

• If y=a±bx
SD( y)=|b| ×SD(x)
V(y)=b2×v(x)

Definition of SD:
• SD of a set of values of a variable is defined as the positive Square Root of the AM of
the Square of Deviations of the values from their AM

• Thus, SD is also known as Root - Mean – Square - Deviations (RMSD)

Calculation of SD

Simple Series(Without Simple /Grouped Frequency


Frequency) Distribution

• Where, ,
x= mid-values if it is a grouped frequency distribution or original values if it is a discrete
series

A = Assumed Mean i.e., a value arbitrarily chosen from mid-values or any other
value.
i = class width or any arbitrary value

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Note1 : Use form i) when you find that is whole number


Note2 : Use form ii) when the value of the variable x are small
Note3 : Use Form iii) when you find that the values of x are large is not a whole number(
usually to be used for grouped frequency distribution)

Useful Results:
• SD of two numbers is the half of their absolute difference(Range), i.e., if numbers are a and
b, then SD =

• Variance of first “n” natural numbers (1, 2, 3, ........, n) is

• Sum of the squares of observations

Formula for combined or composite or pooled S.D. of two groups

Group I Group II
Numbers
Mean

Standard Deviation

• Step 1 – Find Combined Mean:

• Step 2 – Find Deviations :

• Step 3 – Use Formula:

• Coefficient of Variation (C.V)(Relative Measure) =

• C.V is the best relative measure of dispersion

• C.V is used to compare variability or consistency between 2 or more series

• More C.V implies more variability indicating thereby less stability or consistency and vice
versa.

• Regarding choice of an item always choose that item which has less C.V, because the item
with lower C.V is more stable.

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CLASSWORK SECTION

RANGE
1. What is the coefficient of range for the following wages of 8 workers?
` 80, ` 65, ` 90, ` 60, ` 75, ` 70, ` 72, ` 85.
(a)
` 30 (b) ` 20 (c) 30 (d) 20

2. If Rx and Ry denote ranges of x and y respectively where x and y are related by


3x+2y+10=0,
what would be the relation between x and y?
(a) Rx = Ry (b) 2 Rx= 3 Ry (c) 3 Rx= 2 Ry (d) Rx= 2 Ry

3. What is the coefficient of range for the following distribution?

Class Interval : 10-19 20-29 30-39 40-49 50-59


Frequency: 11 25 16 7 3

(a) 22 (b) 50 (c) 72.46 (d) 75.82

4. If the range of x is 2, what would be the range of –3x +50 ?


(a) 2 (b) 6 (c) –6 (d) 44

QUARTILE DEVIATION

5. The quartiles of a variable are 45, 52 and 65 respectively. Its quartile deviation is
(a) 10 (b) 20 (c) 25 (d) 8.30.’

6. If x and y are related as 3x+4y = 20 and the quartile deviation of x is 12, then the
quartile deviation of y is
(a) 16 (b) 14 (c) 10 (d) 9.

7. Quartile Deviation for the data 1, 3, 4, 5, 6, 6, 10 is


(a) 3 (b) 1 (c) 6 (d) 1.5

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8. The value of appropriate measure of dispersion for the following distribution of


daily Wages

Wages (`): Below 30 30-39 40-49 50-59 60-79 Above 80


No. of workers 5 7 18 32 28 10
is given by
(a) `11.03 (b) ` 10.50 (c) 11.68 (d) `11.68.

MEAN DEVIATION

9. What is the value of mean deviation about mean for the following numbers?
5, 8, 6, 3, 4.
(a) 5.20 (b) 7.20 (c) 1.44 (d) 2.23

10. The coefficient of mean deviation about mean for the first 9 natural numbers is
(a) 200/9 (b) 80 (c) 400/9 (d) 50.

11. If the relation between x and y is 5y–3x = 10 and the mean deviation about mean
for x is 12, then the mean deviation of y about mean is
(a) 7.20 (b) 6.80 (c) 20 (d) 18.80.

12. If two variables x and y are related by 2x + 3y –7 =0 and the mean and mean
deviation about mean of x are 1 and 0.3 respectively, then the coefficient of mean
deviation of y about its mean is
(a) –5 (b) 12 (c) 50 (d) 4.

13. The mean deviation about mode for the numbers 4/11, 6/11, 8/11, 9/11, 12/11,
8/11 is
(a) 1/6 (b) 1/11 (c) 6/11 (d) 5/11.

14. What is the mean deviation about mean for the following distribution?
Variable: 5 10 15 20 25 30
Frequency: 3 4 6 5 3 2
(a) 6.00 (b) 5.93 (c) 6.07 (d) 7.20

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15. What is the mean deviation about median for the following data?
X 3 5 7 9 11 13 15
F 2 8 9 16 14 7 4
(a) 2.50 (b) 2.46 (c) 2.43 (d) 2.37

16. What is the coefficient of mean deviation for the following distribution of heights?
Take deviation from AM.
Height in inches: 60-62 63-65 66-68 69-71 72-74
No. of students: 5 22 28 17 3
(a) 2.30 (b) 3.45 (c) 3.82 (d) 2.48

17. The mean deviation of weights about median for the following data:
Weight (lb) : 131-140 141-150 151-160 161-170 171-180 181-190
No. of persons : 3 8 13 15 6 5
Is given by
(a) 10.97 (b) 8.23 (c) 9.63 (d) 11.45.

STANDARD DEVIATION
18. What is the standard deviation of 5, 5, 9, 9, 9, 10, 5, 10, 10?
(a) (b) (c) 4.50 (d) 8

19. If the mean and SD of x are a and b respectively, then the SD of is


(a) –1 (b) 1 (c) ab (d) a/b.

20. What is the coefficient of variation of the following numbers?


53, 52, 61, 60, 64.
(a) 8.09 (b) 18.08 (c) 20.23 (d) 20.45

21. If the SD of x is 3, what is the variance of (5–2x)?


(a) 36 (b) 6 (c) 1 (d) 9

22. If x and y are related by 2x+3y+4 = 0 and SD of x is 6, then SD of y is


(a) 22 (b) 4 (c) (d) 9

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23. If the SD of the 1st n natural numbers is 2, then the value of n must be
(a) 2 (b) 7 (c) 6 (d) 5

24. If x and y are related by y = 2x+ 5 and the SD and AM of x are known to be 5 and 10
respectively, then the coefficient of variation of y is
(a) 25 (b) 30 (c) 40 (d) 20

25. The mean and SD for a, b and 2 are 3 and respectively, The value of ab would be
(a) 5 (b) 6 (c) 11 (d) 3

26. What is the standard deviation from the following data relating to the age distribution
of200 persons?
Age (year) : 20 30 40 50 60 70 80
No. of people: 13 28 31 46 39 23 20
(a) 15.29 (b) 16.87 (c) 18.00 (d) 17.52

27. What is the coefficient of variation for the following distribution of wages?

Daily Wages (`): 30 – 40 40 – 50 50 – 60 60 – 70 70 – 80 80 – 90


No. of workers 17 28 21 15 13 6
(a) ` 14.73 (b) 14.73 (c) 26.93 (d) 20.82

28. Which of the following companies A and B is more consistent so far as the payment
of dividend is concerned ?

Dividend paid by A : 5 9 6 12 15 10 8 10
Dividend paid by B : 4 8 7 15 18 9 6 6
(a) A (b) B
(c) Both (a) and (b) (d) Neither (a) nor (b)

COMBINED STANDARD DEVIATION

29. The mean and SD for a group of 100 observations are 65 and 7.03 respectively. If
60 of these observations have mean and SD as 70 and 3 respectively, what is the SD
for the group comprising 40 observations?
(a) 16 (b) 25 (c) 4 (d) 2

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CA FOUNDATION STATISTICS

30. If two samples of sizes 30 and 20 have means as 55 and 60 and variances as 16 and
25 respectively, then what would be the SD of the combined sample of size 50?
(a) 5.00 (b) 5.06 (c) 5.23 (d) 5.35

CORRECTION IN STANDARD DEVIATION



31. The mean and SD of a sample of 100 observations were calculated as 40 and 5.1
respectively by a CA student who took one of the observations as 50 instead of 40
by mistake. The correct value of SD would be
(a) 4.90 (b) 5.00 (c) 4.88 (d) 4.85.

THEORETICAL ASPECTS

32. Which of the following statements is correct?


(a) Two distributions may have identical measures of central tendency and
dispersion.
(b) Two distributions may have the identical measures of central tendency but
different measures of dispersion.
(c) Two distributions may have the different measures of central tendency but
identical measures of dispersion.
(d) All the statements (a), (b) and (c).

33. Dispersion measures


(a) The scatterness of a set of observations
(b) The concentration of a set of observations
(c) Both (a) and (b)
(d) Neither (a) and (b).

34. When it comes to comparing two or more distributions we consider
(a) Absolute measures of dispersion (b) Relative measures of dispersion
(c) Both (a) and (b) (d) Either (a) or (b).

35. Which one is easier to compute?


(a) Relative measures of dispersion (b) Absolute measures of dispersion
(c) Both (a) and (b) (d) Range

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36. Which one is an absolute measure of dispersion?


(a) Range (b) Mean Deviation
(c) Standard Deviation (d) All these measures

37. Which measure of dispersion is most usefull?


(a) Standard deviation (b) Quartile deviation
(c) Mean deviation (d) Range

38. Which measures of dispersions is not affected by the presence of extreme observations?
(a) Range (b) Mean deviation
(c) Standard deviation (d) Quartile deviation

39. Which measure of dispersion is based on the absolute deviations only?


(a) Standard deviation (b) Mean deviation
(c) Quartile deviation (d) Range

40. Which measure is based on only the central fifty percent of the observations?
(a) Standard deviation (b) Quartile deviation
(c) Mean deviation (d) All these measures

41. Which measure of dispersion is based on all the observations?


(a) Mean deviation (b) Standard deviation
(c) Quartile deviation (d) (a) and (b) but not (c)

42. The appropriate measure of dispersion for open-end classification is


(a) Standard deviation (b) Mean deviation
(c) Quartile deviation (d) All these measures.

43. The most commonly used measure of dispersion is


(a) Range (b) Standard deviation
(c) Coefficient of variation (d) Quartile deviation.

44. Which measure of dispersion has some desirable mathematical properties?


(a) Standard deviation (b) Mean deviation
(c) Quartile deviation (d) All these measures

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45. If the profits of a company remains the same for the last ten months, then the
standard deviation of profits for these ten months would be ?
(a) Positive (b) Negative (c) Zero (d) (a) or (c)

46. Which measure of dispersion is considered for finding a pooled measure of dispersion
after combining several groups?
(a) Mean deviation (b) Standard deviation
(c) Quartile deviation (d) Any of these

47. A shift of origin has no impact on


(a) Range (b) Mean deviation
(c) Standard deviation (d) All these and quartile deviation.

48. The range of 15, 12, 10, 9, 17, 20 is


(a) 5 (b) 12 (c) 13 (d) 11.

49. The standard deviation of 10, 16, 10, 16, 10, 10, 16, 16 is
(a) 4 (b) 6 (c) 3 (d) 0.

50. For any two numbers SD is always


(a) Twice the range (b) Half of the range
(c) Square of the range (d) None of these.

51. If all the observations are increased by 10, then


(a) SD would be increased by 10
(b) Mean deviation would be increased by 10
(c) Quartile deviation would be increased by 10
(d) All these three remain unchanged.

52. If all the observations are multiplied by 2, then


(a) New SD would be also multiplied by 2
(b) New SD would be half of the previous SD
(c) New SD would be increased by 2
(d) New SD would be decreased by 2.

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CA FOUNDATION STATISTICS

53. “Root –Mean Square Deviation from Mean“ is


(a) Standard deviation (b) Quartile deviation
(c) both (d) none

54. The amount of variation is designated as —————— measure of dispersion.
(a) relative (b) absolute (c) both (d) none

55. The degree of variation is designated as —————— measure of dispersion.


(a) relative (b) absolute (c) both (d) none

ANSWERS - SUMS ANSWERS - THEORITICAL ASPECTS


Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 d 21 a 32 d 52 a
2 c 22 b 33 a 53 a
3 c 23 b 34 b 54 b
4 b 24 c 35 d 55 a
5 a 25 c 36 d
6 d 26 b 37 a
7 d 27 b 38 d
8 a 28 a 39 b
9 c 29 c 40 b
10 c 30 b 41 d
11 a 31 b 42 c
12 b 43 b
13 a 44 a
14 c 45 c
15 d 46 b
16 b 47 d
17 a 48 d
18 b 49 c
19 b 50 b
20 a 51 d

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HOMEWORK SECTION

1. A student obtained the mean and standard deviation of 100 observations as 40


and 5.1 respectively. It was later discovered that he had wrongly copied down an
observation as 50 instead of 40. The correct standard deviation is:
(a) 5 (b) 6 (c) 3 (d) 7

2. For a Symmetrical distribution, quartile deviation and the standard deviation are
related by
(a) 5 Q.D. = 4 S.D. (b) 4 Q.D. = 5 S.D.
(c) 2 Q.D. = 3 S.D. (d) 3 Q.D. = 2 S.D.

3. If two samples of sizes 30 and 20 have means as 55 and 60 and variances as 16 and
25 respectively, then what would be the S.D. of the combined sample size 50?
(a) 5.33 (b) 5.17 (c) 5.06 (d) 5

4. If two variables x and y are related by 2x + 3y – 7 = 0 and the mean and mean
deviation about mean of x are 1 and 0.3 respectively, then the co-efficient of mean
deviation of y about mean is
(a) –5 (b) 4 (c) 12 (d) 50

5. Measures of dispersion are called average of the ___ order.


(a) 1st (b) 2nd (c) 3rd (d) none

6. In a set of 100 observations, taking assumed mean as 4, the sum of the deviations
is –11 cm, and the sum of the squares of these deviations is 257 cm2. The coefficient
of variation is
(a) 41.13% (b) 42.13% (c) 40.13% (d) none

7. _____ are used for measuring central tendency, dispersion and skewness:
(a)
Median (b) Deciles
(c) Percentiles (d) Quartiles

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8. Which of the following companies A or B is more consistent so far as the payment


of dividend is concerned?
Dividend paid by A : 5 9 6 12 15 10 8 10
Dividend paid by B : 4 8 7 15 18 9 6 6
(a)
A (b) B
(c) Both A & B (d) Neither A nor B

9. What is the coefficient of range for the following distribution?


Class Interval 10–19 20–29 30–39 40–49 50–59
Frequency 11 25 16 7 3
(a) 22 (b) 50 (c) 75.82 (d) 72.46

10. A sample of 35 observations has the mean 80 and S.D. as 4. A second sample of
65 observations from the same population has mean 70 and S.D. 3. The S.D. of the
combined sample is:
(a) 5.85 (b) 5.58 (c) 10.23 (d) None of these

11. If x and y are related as 3x – 4y = 20 and the quartile deviation of x is 12, then the
quartile deviation of y is :
(a) 14 (b) 15 (c) 16 (d) 9

12. The best measure of dispersion is :


(a) Q.D. (B) M.D. (c) Range (d) S.D.

13. If the mean and S.D. of x and a and b respectively, then the S.D. of is :
(a) a/b (b) –1 (c) 1 (d) ab

14. Suppose a population A has 100 observations 101, 102, 103, . . . 200 and another
population B has 100 observations 151, 152, 153, . . . 250. If VA and VB represents
the variance of the two populations respectively, then VA / VB =
(a) 9/4 (b) 1 (c) 4/9 (d) 2/3

15. The mean and S.D. for group of 100 observations are 65 and 7.03 respectively. If 60
of these observations have mean and S.D. as 70 and 3 respectively, what is the S.D.
for the group comprising 40 observations?
(a) 2.03 (b) 4.03 (c) 8.03 (d) 9.33

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CA FOUNDATION STATISTICS

16. The quartile deviation for the data is:


x 2 3 4 5 6
f 3 4 8 4 1
(a) 1/4 (b) 1/2 (c) 0.875 (d) 1

17. If X and Y are two independent random variables then v(x + y) is:
(a) v(x) + v(y) (b) v(x) + v(y) – 2v(x, y)
(c) v(x) + v(y) + 2v(x, y) (d) v(x) – v(y)

18. Mean and S.D. of x is 50 and 5 respectively. Find mean and S.D. of .
(a) (1, 0) (b) (0, 1)
(c) (1, 1) (d) (0, –1)

19. Mean and S.D. of a given set of observations is 1,500 and 400 respectively. If there
is an increment of 100 in the first year and each observation is hiked by 20% in 2nd
years, then find new mean and S.D.
(a) 1920, 480 (b) 1920, 580
(c) 1600, 480 (d) 1600, 400

20. If 5 is subtracted from each observation of some certain item then its co-efficient of
variation is 10% and if 5 is added to each item then its coefficient of variation is 6%.
Find original coefficient of variation.
(a)
8% (b) 7.5%
(c) 4% (d) none of these

21. Inter Quartile Range is _____ of Quartile Deviation.


(a)
Half (b) Double
(c)
Triple (d) Equal

22. The sum of squares of deviation from mean of 10 observations is 250. Mean of the
data is 10. Find the co-efficient of variation.
(a)
10% (b) 25%
(c)
50% (d) 0%

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23. If L1 = highest observation and L2 = smallest observation, then Coefficient of Range

(a) (b)

(c) (d)

24. The equation of a line is 5x + 2y = 17. Mean deviation of y about mean is 5. Calculate
mean deviation of x about mean
(a) –2 (b) 2 (c) –4 (d) none

25. If variance of x is 5, then find the variance of (2 – 3x)


(a) 10 (b) 45 (c) 5 (d) –13

26. The variance of data : 3, 4, 5, 8 is


(a) 4.5 (b) 3.5 (c) 5.5 (d) 6.5

27. Given the observations: 4, 9, 11, 14, 37. The Mean deviation about the median is
(a) 11 (b) 8.5 (c) 7.6 (d) 7.45

28. If all observations in a distribution are increased by 6, then the variance of the
series will be ____.
(a) Increased (b) Decreased
(c) Unchanged (d) None of these

29. The standard deviation of the weights (in kg) of the students of a class of 50 students
was calculated to be 4.5 kg. Later on it was found that due to some fault in weighing
machine, the weight of each student was under measured by 0.5 kg. The correct
standard deviation of the weight will be:
(a) Less than 4.5 (b) Greater than 4.5
(c) Equal to 4.5 (d) Can not be determined

30. For Normal distribution he relation between quartile deviation (Q.D.) and standard
deviation (S.D.) is
(a) Q.D. > S.D. (b) Q.D. < S.D.
(c) Q.D. = S.D. (d) None of the above

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CA FOUNDATION STATISTICS

31. If standard deviation of first ‘n’ natural numbers is 2 then value of ‘n’ is
(a) 10 (b) 7 (c) 6 (d) 5

32. The standard deviation is independent of change of


(a)
Scale (b) Origin
(c) Both origin and scale (d) None of these

33 In a normal distribution, the relationship between the three most commonly used
measures of dispersion are:
(a) Standard Deviation > Mean Deviation > Quartile Deviation
(b) Mean Deviation > Standard Deviation > Quartile Deviation
(c) Standard Deviation > Quartile Deviation > Mean Deviation
(d) Quartile Deviation > Mean Deviation > Standard Deviation

34. If Standard deviation of x is , then Standard deviation of , where a, b and c (c


± 0) are arbitrary constants, will be
(a) (b) (c) (d)

35. Which of the following measures of dispersion is used for calculating the consistency
between two series?
(a) Quartile deviation (b) Standard deviation
(c) Coefficient of variation (d) None of the above

36. If sum of squares of the values = 3390, n = 30 and standard deviation = 7, find out
the mean.
(a) 113 (b) 210 (c) 8 (d) None of these

37. If the mean of a frequency distribution is 100 and coefficient of variation is 45%
then standard deviation is:
(a) 45 (b) 0.45 (c) 4.5 (d) 450

38. Find at the variance given that the Arithmetic Mean = (8 + 4)/2
(a) 2 (b) 6 (c) 1 (d) 4

39. Coefficient of mean deviation about mean for the first 9 natural numbers is
(a) 200/9 (b) 80 (c) 400/9 (d) 50

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CA FOUNDATION STATISTICS

40. If mean = 5, Standard deviation = 2.6, median = 5 and quartile deviation = 1.5, then
the coefficient of quartile deviation equals
(a) 35 (b) 39 (c) 30 (d) 32

41. What will be the probable value of mean deviation? When Q3 = 40 and Q1 = 15.
(a) 17.50 (b) 18.75 (c) 15.00 (d) None of the above

42. The formula for range of middle 50% items of a series is:
(a) Q3 – Q1 (b) Q3 – Q2 (c) Q2 – Q1 (d)

43. If the first quartile is 142 and semi-inter quartile range is 18, then the value of
median is:
(a) 151 (b) 160 (c) 178 (d) None of these

44. The quartile deviation is:


(a) 2/3 of S.D.
(b) 4/5 of S.D.
(c) 5/6 of S.D.
(d) None of these

45. The standard deviation of a variable x is known to be 10. The standard deviation of
50 + 5x is
(a) 50 (b) 100 (c) 10 (d) 500

46. Coefficient f quartile deviation is equal to


(a) Quartile deviation × 100/median
(b) Quartile deviation × 100/mean
(c) Quartile deviation × 100/mode
(d) none

47. If all the observations are increased by 5, then


(a) S.D. would be increased by 5
(b) Mean deviation would be increased by 5
(c) Quartile deviation would be increased by 5
(d) All the three would not be increased by 5

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48. What is value of mean deviation about mean from the number 5, 8, 6, 3 and 4?
(a) 5.20 (b) 7.20 (c) 1.44 (d) 2.23

49. For the observation of 6, 4, 1, 6, 5, 10, 4, 8 the range is:


(a) 10 (b) 9 (c) 8 (d) None

50. If a variance of a random variable ‘x’ is 23, then what is variance of y= 2x + 10?
(a) 56 (b) 33 (c) 46 (d) 92

51. If variance = 148.6 and , =40 then the coefficient of variation is:
(a) 37.15
(b) 30.48
(c) 33.75
(d) None of the above

52. The SD of first n natural number is _____

(a)

(b)

(c)

(d) None of these

53. If mean and coefficient of variation of the marks of 10 students is 20 and 80


respectively. What will be variance of them?
(a) 256 (b) 16 (c) 25 (d) None of these

54. If same amount is added to or subtracted from all the values of an individual series
then the standard deviation and variance both shall be ____
(a) changed
(b) unchanged
(c) same
(d) none of these

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55. If arithmetic mean and coefficient of variation of x are 10 and 40, respectively then
the variance of y = –15 + will be:
(a) 64 (b) 81 (c) 49 (d) 36

56. Mean deviation is the least when deviations are taken from
(a) Mean (b) Median (c) Mode (d) Harmonic mean

57. is known as

(a) Coefficient of Range


(b) Coefficient of Q.D.
(c) Coefficient of S.D.
(d) Coefficient of M.D.

58. If the S.D. of the 1st n natural nos. is . Then the value of n is
(a) 19 (b) 20 (c) 21 (d) None

59. If the range of a set of values 65 and maximum value in the set is 83, then the
minimum value in the set is
(a) 74 (b) 9 (c) 18 (d) None of the above

60. If the variance of 5, 7, 9 and 11 is 4, then the coefficient of variation is:


(a) 15 (b) 25 (c) 17 (d) 19

61. Standard Deviation for the marks obtained by a student in monthly test in mathematic
(out of 50) as 30, 35, 25, 20, 15 is
(a) 25 (b) (c) (d) 50

62. If the standard deviation for the marks obtained by a student in monthly test is 36,
then the variance is
(a) 6 (b) 36 (c) 1296 (d) None of the above

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ANSWER

1 a 21 b 41 c 61 b
2 d 22 c 42 a 62 c
3 c 23 b 43 b
4 c 24 b 44 a
5 b 25 b 45 a
6 a 26 b 46 a
7 d 27 c 47 d
8 a 28 c 48 c
9 d 29 c 49 b
10 a 30 b 50 d
11 d 31 b 51 b
12 d 32 b 52 a
13 c 33 a 53 a
14 b 34 d 54 b
15 b 35 c 55 d
16 d 36 c 56 b
17 a 37 a 57 b
18 b 38 d 58 a
19 a 39 c 59 c
20 b 40 c 60 b

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HOMEWORK SOLUTION

1. (a) Correct ∑x = (100 * 40) – 50 + 40 = 3990


Correct ∑x2 = 100[(5.1)2 +(40)2] – 502 + 402 = 161701
Correct SD2 = 161701/100 – (3990/100)2 = 25
Correct SD = 5

2. (d) For a moderately skewed distribution: SD = 1.5 times the QD.

3. (c) Combined Mean = (30*55 + 20*60)/(30+20) = 57


D1 = 55 – 57 = -2
D2 = 60 – 57 = 3
Combined SD2 = [30(16 + 4) + 20(25 + 9)]/50 = 1280/50 = 25.6
Combined SD = √25.6 = 5.06

4. (c) Mean(y) = [7 – 2(1)]/3 = 5/3


MD (y) = 2(0.3)/3 = 0.2
Coefficient of MD (y) = 0.2 / 5/3 = 0.6/5 = 0.12 * 100 = 12

5. (b) Measures of dispersion are known as averages of the second order.

6. (a) Mean = 4 – 11/100 = 3.89
∑x2 = 257 + 8(389) – 16(100) = 1769
SD2 = 1769/100 – (3.89)2 = 2.5579
SD = 1.60
Coefficient of variation = 1.60/3.89 * 100 = 41.13%

7. (d) Quartiles are used for measuring central tendency, dispersion and skewness.

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8. (a) Company A:
Mean = (5+9+6+12+15+10+8+10)/8 = 9.375
∑x2 = 25+81+36+144+225+100+64+100 = 775
SD2 = 775/8 – (9.375)2 = 8.984375
SD = 3
COV = 3/9.375 * 100 = 32%.
Company B:
Mean = (4+8+7+15+18+9+6+6)/8 = 9.125
∑x2 = 16+64+49+225+324+81+36+36 = 831
SD2 = 831/8 – (9.125)2 = 20.609375
SD = 4.54
COV = 4.54/9.125 * 100 = 49.75%
Company A is more consistent. [As COV(A) < COV(B)]

9. (d) Highest Mark = 59.5


Lowest Mark = 9.5
Coefficient of Range = (H – L)/(H + L) * 100 = (59.5 – 9.5)/(59.5 + 9.5) * 100 =
50/69 = 72.46

10. (a) Combined Mean = (35*80 + 65*70)/(35+65) = 73.50
D1 = 80 – 73.50 = 6.50
D2 = 70 – 73.50 = - 3.50
Combined SD2 = [35(16 + 42.25) + 65(9 + 12.25)]/100 = (2038.75+1381.25)/100
= 34.20
Combined SD = √34.20 = 5.85

11. (d) QD(y) = 3(12)/4 = 9,

12. (d) The best measure of dispersion is Standard Deviation.

13. (c) Y = (X – a)/b


b.SD(Y) = SD(X) = b
SD(Y) = b/b = 1

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14. (b) A = B – 50
V(A) = V(B)
V(A) / V(B) = 1

15. (b) 65*100 = (60 * 70) + (40 * X)


6500 = 4200 + 40X
X (Mean of the second group) = 57.5
D1 = 70 – 65 = 5
D2 = 57.5 – 65 = - 7.5
100(7.03)2 = 60(9 + 25) + 40(S2 + 56.25)
(4942.09 – 2040)/40 – 56.25 = S2 = 16.30225
S = 4.03

16. (d) QD =
On solving we get , Q1 = 3 and Q3 = 5
QD =

=
= 1

17. (a) V(X + Y) = V(X) + V(Y)

18. (b) Y = (x – 50)/5


5Y = x – 50
5 SD(Y) = SD(x) = 5
SD(Y) = 5/5 = 1
Mean(Y) = (50 – 50)/5 = 0

19. (a) Y = 1.2(X + 100) = 1.2X + 120


Mean(Y) = 1.2(1500) + 120 = 1920
SD(Y) = 1.2 SD(X) = 1.2 * 400 = 480

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20. (b) Y = X – 5
10 = S /(X’ – 5) * 100
X’ – 5 = 10S
Z=X+5
6 = S/(X’ + 5) * 100
6X’ + 30 = 100S
10X’ – 50 = 100S
4X’ = 80
Mean(X) = 20
SD(X) = 1.5
Original COV = 1.5/20 * 100 = 7.5%

21. (b) Inter-Quartile Range is Double of Quartile Deviation.

22. (c) SD2 = 250/10 = 25; SD = 5


COV = 5/10 * 100 = 50%

23. (b) Coefficient of Range = (L1 – L2)/(L1 + L2) * 100.

24. (b) 5 MD(x) = 2 MD(y) = 2*5 = 10


MD(x) = 10/5 = 2.

25. (b) Vx = 5
Vy= ?
Y = 2 -3x
Vy = b2 x Vx
= (-3)2 x 5
=9x5
= 45

26. (b) Mean = (3 + 4 + 5 + 8) = 20/4 = 5


SD2 = (4 + 1 + 0 + 9)/4 = 14/4 = 3.5

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27. (c) Median for the data 4,9,11,14,37


Median 4, 9, 11, 14, 37
M = 11

MD from M =

=

= 7.6

28. (c) Variance of the series is independent of change of the origin.

29. (c) SD is independent of the change of origin. No change in the SD. SD = 4.5.

30. (b) SD > QD. Or, QD < SD.

31. (b) S2 = (n2 – 1)/12
4*12 + 1 = n2 = 49
n=7

32. (b) SD is independent of the change of Origin.

33. (a) In normal distribution SD > MD > QD.

34. (d) y = (ax+b)/c


y = a/c x + b/c
σy= |b| σx
σy= σx

σy= σ

35. (c) Standard deviation is used to measure the consistency between two series
using Coefficient of variation.

36. (c) Mean2 = 3390/30 - SD2 = 113 – 49 = 64


Mean = 8.

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37. (a) 0.45 = SD/100


SD = 45

38. (d) = (8+4)/2 (given)

∴ The two numbers are 8 and 4

Variance = σ2 = 4

39. (c) Coefficient MD =


= 5 (Mean for n natural no’s)
= 20
Coefficient of MD = x 100

Coefficient of MD =

40. (c) Coefficient of QD = QD/Median * 100 = 1.5/5 * 100 = 30

41. (c) QD = (40 – 15)/2 = 12.5


MD = (12.5)*6/5 = 15

42. (a) Range of middle 50% of items = Q3 –Q1 and it is called inter quartile range.
Whereas is called semi inter quartile range which is quartile deviation

43. (b) 18 = (Q3 – 142)/2


Q3 = 178
Q2 = (178 + 142)/2 = 160

44. (a) The QD = 2/3 SD.

45. (a) SD(50 + 5x) = 5.SD(x) = 5*10 = 50.

46. (a) Coefficient of QD = QD/Median * 100.

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47. (d) If all the observations are increased by 5, there is no change in any measure of
dispersion, as all measures of dispersion are independent of change of origin.

48. (c) Mean = (5+8+6+3+4)/5 = 26/5 = 5.2
|x – Mean| = 0.2 + 2.8 + 0.8 + 2.2 + 1.2 = 7.2
MD = 7.2/5 = 1.44.

49. (b) Range = 10 – 1 = 9.

50. (d) V(2x + 10) = 4*V(x) = 4*23 = 92.

51. (b) Variance = 148.6, SD = 12.2


Coefficient of variation = 12.2/40 * 100 = 30.48

52. (a) SD2 = (n2 – 1)/12

53. (a) 80/100 = SD/20; SD = 16; Variance = 162 = 256.

54. (b) Both SD and variance remain unchanged.



55. (d) 40/100 = SD/10; SD = 4; Variance = 16
V(-15 + 3x/2) = 9/4 * V(x) = 9/4 * 16 = 36

56. (b) Mead deviation is least when deviations are taken from Median.

57. (b) Coefficient of QD =

58. (a) 30 = (n2 – 1)/12


n2 = 30*12 + 1 = 361; n = √361 = 19.

59. (c) 65 = 83 – Minimum value.


Minimum value = 83 – 65 = 18.

60. (b) Mean = (5 + 7 + 9 + 11)/4 = 32/4 = 8


SD = √4 = 2
COV = 2/8 * 100 = 25%

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61. (b) Mean = (30 + 35 + 25 + 20 + 15)/5 = 25


SD2 = [(30 – 25)2 + (35 – 25)2 + (25 – 25)2 + (20 – 25)2 + (15 – 25)2] / 5
= (25 + 100 + 0 + 25 + 100) / 5 = 50
SD = √50.

62. (c) Variance = 362 = 1296.

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SELF ASSESSMENT TEST 3


30 Marks

1. What does measure of dispersion indicate:


a) Correlation between data b) Regression between variables
c) Variability of data d) Central tendency of data

2. Standard deviation of two numbers A and B is:


a) |A – B| b) (A – B)/2
c) |A – B| / 2 d) (A – B)

3. A shift of origin has no impact on:


a) Range b) Quartile Deviation
c) Mean Deviation d) All of the above

4. Which measures of dispersion is not affected by the presence of extreme values?


a) Standard Deviation b) Range
c) Mean Deviation d) Semi-Inter Quartile Range

5. Which empirical relation is CORRECT?


a) MD = 8 SD b) 8 MD = SD
c) MD = 0.8 SD d) MD = 1.25 SD

6. We shall compute the following to study the deviations of middle 40% portion of a
series:
a) Q2 – Q1 b) Q3 – Q1
c) P70 – P30 d) D6 – D2

7. Which measure of dispersion is useful in open-end classes?


a) Range b) Mean Deviation
c) Standard Deviation d) Semi-Inter Quartile Range

8. The square of the standard deviation is known as:


a) Variation b) Coefficient of Variation
c) Coefficient of Standard Deviation d) None of the above

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9. What empirical relation would you expect to exist between the semi-inter quartile
range and the mean deviation for bell shaped distribution which are moderately
skewed?
a) Semi IQR = 5/6 * MD b) Semi IQR = 6/5 * MD
c) 5/6 * Semi IQR = MD d) None of the above

10. If the profits of a firm remain the same for the last 10 months, then the standard
deviation of profits for these 10 months would be?
a) Positive b) Zero
c) Negative d) Can’t be determined

11. The range find its wide application in:


a) Econometrics b) Quantum Statistics
c) Statistical Quality Control d) Psychoroetrics

12. Which measure of dispersion is based on the absolute deviations only?


a) Standard Deviation b) Range
c) Quartile Deviation d) Mean Deviation

13. Which measure of dispersion is considered for computing a pooled measure of


dispersion after combining several groups?
a) Mean Deviation & Standard Deviation
b) Mean Deviation
c) Standard Deviation
d) Range

14. To compare the variability between two series which also differ on their unit of
measurements, the measure usually used is:
a) Standard Deviation b) Mean Absolute Deviation
c) Coefficient of Variation d) Inter-Quartile Range

15. Find the standard deviation of 4, 8, 10, 12, 16.


a) 2 b) 4 c) 8 d) None of the above

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16. Calculate the variance of 1, 5, 6.


a) 2.16 b) 4.67 c) 6.47 d) 5.47

17. Find the Mean-Deviation about the Arithmetic Mean of the numbers 31, 35, 29, 63,
55, 72, 37.
a) 12.86 b) 14.86 c) 13.78 d) 13.86

18. Find the coefficient of mean deviation of the following numbers: 46, 79, 26, 85, 39,
65, 99, 29, 56, 72.
a) 33.27% b) 34.87% c) 34.23% d) 32.43%

19. The arithmetic mean is 25 and standard deviation is 6.25. Find the coefficient of
variation.
a) 20 b) 25 c) 30 d) 50

20. The mean and SD of 20 items were found to be 12 and 6 respectively. On checking
it was dis-covered that items which should correctly read as 11 and 21 had been
wrongly taken as 15 and 27 respectively. Find the correct SD.
a) 3.5 b) 4.3 c) 5.3 d) 4.5

21. Find mean, if co-efficient of variation is 5% and variance is 4.


a) 30 b) 40 c) 45 d) None of the above

22. The mean of 5 observations is 4.4 and the variance is 8.24. If three of the five
observations are 1, 2 and 6, find the other two.
a) 4, 8 b) 9, 4 c) 8, 6 d) 9, 5

23. If in the distribution, n = 10, ∑x = 20, ∑x2 = 200, then find the value of SD.
a) 2 b) 4 c) 3.5 d) 4.5

24. The two variables X and Y are related by Y = 10 – 3X. If the SD of X is 4, what is the
SD of Y.
a) 2 b) 12 c) – 2 d) None of the above

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25. Find the Quartile Deviation of the following data: 12, 10, 17, 14, 19, 21, 27, 30, 32,
28, 34.
a) 8 b) 3.8 c) 8.3 d) 9

26. The standard deviation of 10, 16, 10, 16, 10, 10, 16, 16 is:
a) 6 b) 4 c) 3 d) 9

27. The maximum and minimum values of a series are 60 and 0 respectively. What is
the coeffi-cient of range?
a) 1 b) – 1 c) 0 d) None of the above

28. Find the first quartile, if coefficient of quartile deviation = 0.37 and the third quartile
is 46.25.
a) 46.62 b) 21.26 c) 21.07 d) 27.08

29. The mean of 200 items is 48 and standard deviation is 3. What is the sum of the
squares of these items?
a) 462600 b) 400000 c) 460000 d) None of the above

30. The means of two samples of sizes 50 and 100 respectively are 54.4 and 50.3 and
the standard deviation is 8 and 7. Obtain the standard deviation of the sample size
150 obtained by combining the two samples.
a) 5.79 b) 6.79 c) 7.59 d) 7.37

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EXPLANATORY
ANSWERS

1. Measures of dispersion indicate the variability of data. Option C

2. SD of two numbers is average if their absolute range = ½ |A – B|. Option C

3. All measures of dispersion are independent of change/shift of origin. Option D

4. Quartile deviation or Semi-Inter Quartile Range is not affected by the presence of


extreme val-ues. Option D

5. Mean Deviation = 80% of Standard Deviation. Option C

6. Middle 40% means to the left and right, we need to leave 60% data, 30% on both
sides. Thus middle 40% is correctly represented by P70 – P30. Option C

7. Quartile deviation best fits in case of open end classes. Option D

8. Square of SD = Variance. Option D

9. Quartile Deviation = 5/6 Mean Deviation. Option A

10. If all values are same, SD = 0. Option B

11. Range is widely used in statistical quality control measures. Option C

12. Mean deviation is based on absolute deviations. Option D

13. Standard deviation is used to measure pooled measure of dispersion. Option C

14. With different units of measurements, co-efficient of variation is the best relative
measure of dispersion. Option C

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15. Mean = (4 + 8 + 10 + 12 + 16)/5 = 50/5 = 10


SD2 = [(4-10)2+(8-10)2+(10-10)2+(12-10)2+(16-10)2]/5 = (36+4+0+4+36)/5 = 16
SD = 4. Option B

16. Mean = (1 + 5 + 6)/3 = 12/3 = 4


Variance= [(1-4)2 + (5-4)2 + (6-4)2]/3 = (9 + 1 + 4)/3 = 14/3 = 4.67. Option B

17. AM = (31+35+29+63+55+72+37)/7 = 46
MD = (15 + 11 + 17 + 17 + 9 + 26 + 9)/7 = 104/7 = 14.86. Option B

18. AM = (46+79+26+85+39+65+99+29+56+72)/10 = 59.6


MD = (13.6+19.4+33.6+25.4+20.6+5.4+39.4+30.6+3.6+12.4)/10 = 204/10 = 20.4
Coefficient of MD = 20.4/59.6 * 100 = 34.23% Option C

19. COV = 6.25/25 * 100 = 25. Option B

20. ∑X = 12*20 = 240


Correct ∑X = 240 – 15 – 27 + 11 + 21 = 230
∑X2 = 20 [36 + 144] = 3600
Correct ∑X2 = 3600 – 152 – 272 + 112 + 212 = 3600 – 225 – 729 + 121 + 441 = 3208
Correct SD2 = 3208/20 – (230/20)2 = 160.4 – 132.25 = 28.15
SD = √28.15 = 5.3. Option C

21. 5/100 = 2/Mean. Mean = 200/5 = 40. Option B

22. Mean = 4.4 * 5 = 22


Sum of remaining two numbers = 22 – 1 – 2 – 6 = 13. Only option fits in is Option B

23. SD2 = 200/10 – (20/10)2 = 20 – 4 = 16. SD = 4. Option B

24. SD(y) = 3.SD(x) = 3*4 = 12. Option B

25. After arrangement: 10, 12, 14, 17, 19, 21, 27, 28, 30, 32, 34
Q3 = ¾(11+1) = 9th item = 30
Q1 = ¼(11+1) = 3rd item = 14
QD = (Q3 – Q1)/2 = (30 – 14)/2 = 16/2 = 8. Option A

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26. SD = ½ |16 – 10| = 6/2 = 3. Option C

27. Coefficient of Range = (H – L)/(H + L) = (60 – 0)/(60 + 0) = 1. Option A

28. 0.37 = (46.25 – Q1)/(46.25 + Q1)


17.1125 + 0.37Q1 = 46.25 – Q1
1.37Q1 = 29.1375
Q1 = 29.1375/1.37 = 21.26. Option B

29. Sum of squares = 200[9 + 482) = 462600


Option A

30. Combined Mean = (50*54.4 + 100*50.3)/150 = 51.7


D1 = 54.4 – 51.7 = 2.7, D2 = 50.3 – 51.7 = - 1.4
Combined SD2 = [50(82 + 2.72) + 100(72 + 1.42)]/150 = 57.737
Combined SD = (57.737)1/2 = 7.59
Option C

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LINEAR CORRELATION &


LINEAR REGRESSION

• Correlation is the degree of association between two or more variables

• In other words, correlation measures the degree or extent to which two variables
move in sympathy.

• This association or lack of association is measured by means of a coefficient called


correlation coefficient.

• It is a pure number without any unit and the value of which lies between -1 and +1
a. When correlation coefficient is +1, perfect positive Correlation
b. When correlation coefficient is -1, perfect negative Correlation
c. When correlation coefficient is 0, no correlation

In the given context we are concerned with,


i. Correlation between two variables i.e., x and y (Bivariate Correlation).
ii. Correlation implies Linear correlation only.

• Correlation coefficient is independent of change in Origin and Scale.

Note:
Concept of Spurious or Nonsense correlation:
Sometimes it is found that there is no casual relation between two variables but due to
presence of a third variable a correlation can be observed between the two. This variable
which is responsible for the correlation other two variable is called “Lurking variable”.

Methods of calculating correlation coefficient:

1. Karl-Pearson’s Coefficient of Correlation or Product-Moment Correlation Coefficient


or Correlation Coefficient by Covariance Method (r)

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i.

Where,
Cov(x, y) = Covariance between x and y

ii. Thus,


iii. When deviations are taken from actual means say and such that u=x- and
v=y- in such a case r will be given by,

iv. When deviations are taken from assumed means say ‘a’ from X and ‘b’ from Y such
that u=X-a and v=Y-b in such a case ‘r’ is given by,

Note 1: Use (i) when you find that cov (x, y), and are provided

Note 2: Use (ii) when you find that the values of x and y are small

Note 3: Use (iii) when you find that and are whole numbers

Note 4: Use (iv) when you find that and are not whole numbers or the values of x and y are
large or the problems specifically directs that the deviations are to be taken from assumed
mean only.

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2. Spearman’s Rank Correlation Coefficient:


• Rank correlations is used for Qualitative data like beauty, intelligence etc.
• It is used for measuring correlation between two attributes.
• It is denoted by ‘R’

Formula for rank correlation,

Case 1: without tie-when all the variables have different ranks


Where,
n = Total number of individuals
D = Rank difference= Rx - Ry

Case 2: Tied Ranks


i. In such cases two or more variables have the same score and accordingly average ranks
are assigned to the variables which are involved in the tie.

ii. The Formula in such a case


Where,
t = number of variables are involved in tie.
n = total number of variables
D = Rx – Ry=Rank difference

3. Concurrent Deviation Method or Coefficient of Concurrent Deviation [r]:


• It is the simplest and quickest method of calculating correlation

• It is used to know the direction changes between two variables

• It is suitable only when the variable includes short term fluctuations

• It lies between -1 and +1

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• Let (x1,y1), (x2,y2), .... ...., (xn+1,yn+1) be a set of (n+1) pairs of values of x and y. Let
Cx and Cy denote the direction changes in the values of x and y i.e., Cx and Cy will
have positive signs if there is an increase in the values of x and y w.r.t its immediate
preceding value and will have negative signs in case of decrease.

If C denotes the number of concurrent deviations i.e., total number of positive signs in the Cx .Cy
column then the coefficient of concurrent deviation is given by,


Where,
n = pairs of deviations compared
c = number of concurrent deviations

i. If is positive, positive sign is to be assigned both inside and outside the square root.

ii. If is negative, negative sign is to be assigned both inside and outside the square
root.

iii. When C = 0, r = -1

iv. When C = n, r = 1

v. When C = ,r=0

4. Diagramatic representation of correlation through scatter diagram or scatter plot:

• It the simplest way to represent bivariate data

• It gives a vague idea about the nature of correlation between two variables

• It helps us to distinguish between different types of correlation but fails to measure the
extent of relationship between the variables

• Through scatter diagram we can get an idea about the nature of correlation; positive,
negative, zero or curvilinear

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Properties of Correlation of Coefficient ‘r’:


• Coefficient correlation is symmetric i.e., rxy= ryx
• If y = a+ bx then,
i. r = +1 when b>0 and
ii. r = -1 when b<0

• correlation coefficient is independent of the change of origin and scale.


If and then,

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CA FOUNDATION STATISTICS

a. ruv = rxy, if c and d are of the same sign

b. ruv = -rxy, if c and d are of the opposite sign

Miscellaneous Properties:
• Coefficient of determination = r2

• Coefficient of Non -Determination :

• Coefficient of alienation = square root of coefficient of non-determination =

• Percentage of explained variation =

• Percentage of unexplained variation =

• Standard error of r (S.E of r) =

• Probable error of r [P.E (r)] = 0.6745 x SE(r)

• Probable error and standard error both are used for determining the reliability of
correlation coefficient. For this purpose the following rule is followed,
1) If r < P.E. there is no significant correlation in population.
2) If r > 6 P.E. there is significant correlation in population and we can rely on the
value of r
3) Otherwise, in the intermediate interval there is no clear idea about the correlation in
the population and hence no inference can be drawn about the population correlation
coefficient ( ).
Using probable Error (P.E.), we can find the probable limits for population correlation
coefficient ( ) as follows
Probable limits = r P.E
= (r-P.E) to (r+ P.E)

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• Let x and y be two correlated variables, then: V (x

• Let x and y are two uncorrelated variables, then Cov(x,y) = 0 and hence,

Bivariate Data
• When a set of data is collected for two variables simultaneously it is called a
Bivariate Data

• When a frequency distribution is formed with these bivariate data it is known as


Bivariate Frequency Distribution or Joint Frequency Distribution or Two Way Distribution

• The tabular representation of this frequency distribution is known as Two Way
Frequency Table

• Following is a bivariate table for the data relating to marks in maths and statistics

Marks in Mathematics
Marks in 0-4 4-8 8-12 12-16 16-20 Total
Stats 0-4 1 1 2 0 0 4
4-8 1 4 5 1 1 12
8-12 1 2 4 6 1 14
12-16 0 1 3 2 5 11
16-20 0 0 1 5 3 9
Total 3 8 15 14 10 50

Observations:
• A bivariate frequency distribution having m rows and n columns has m x n cells
• Some of the cell frequencies may be zero

From a bivariate distribution we can have the following two types of Uni-variate distributions
i. Two Marginal Distributions
ii. m+n Conditional Distributions

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From the above table the two marginal distributions are as follows,

Marginal Distribution of Marks in Mathematics

Marks No of students
0-4 3
4-8 8
8-12 15
12-16 14
16-20 10
Total 50

Similarly, we can have Marginal Distribution for marks in statistics

From the above table, an example a Conditional distribution of marks in Statistics


when the mathematics marks lie between 8-12

Marks No of students
0-4 2
4-8 5
8-12 4
12-16 3
16-20 1
Total 15

Bivariate Relationship
Between two variables x and y there can exist any of the following three relationship
a. Direct or Positive – with change in one variable x, the other variable y will also
change in the same direction. Eg: Price and quantity supplied: amount of rainfall
and crop yield

b. Indirect or Inverse or Negative – With change in one variable, the other variable will
change in the opposite direction. Eg: Price and quantity demanded.

c. No relation – With change in one variable x, if another variable y doesn’t show any
specific trend (increasing or decreasing), then we say there exist no relation between
x and y.

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CLASSWORK SECTION

Product Moment Method/ Covariance Method


1. Find the number of pairs of observation from the following data: r = 0.25,


a) 30 b) 40 c) 20 d) 10

2. The Cov (x, y) =15, what restrictions should be put for the standard deviations of x and y?
a) No restriction
b) The product of the standard deviations should be more than 15
c) The product of the standard deviations should be less than 15
d) The sum of the standard deviations should be less than 15

3. Calculate Cov(x, y) for the following data: = - 235,


n = 64.
a) 39.17 b) – 39.17 c) – 3.67 d) 39.71

4. Calculate the co-variance from the following data: = 411,


n = 11.
a) 0.4 b) 0.5 c) 0.6 d) 3.72

5. Calculate r, if Cov (x, y) = 10, Var (x) = 6.25 and Var (y) = 31.36.
a) 0.71 b) – 0.71 c) 0.61 d) – 0.61

6. Find the coefficient of correlation from the following data:


X: 1 2 3 4 5
Y: 6 8 11 8 12
a) + 0.775 b) – 0.775 c) + 0.895 d) + 0.956

7. Given that
X -3 0 3

Y 9 0 9

Then Karl Pearson’s co-efficient of correlation is


a) Positive b) Zero c) Negative d) none

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Calculation of “r” – Deviation Techniques

8. Which of the following is the value of correlation coefficient for the following data:


a) 0.987 b) – 0.75 c) 0.75 d) 0.85

9. The co-efficient of correlation between X and Y is 0.6, U and V are two variables
defined as , then the co-efficient of correlation between U and V is
a) 0.6 b) 0.4 c) 0.8 d) 1

10. Calculate correlation coefficient from the following data:

a) 0.215 b) – 0.215 c) – 0.317 d) None of the above

11. Following Data are available in respect of two bivariate distributions.



a) r=0.8095 b) r=0.8905 c) r=0.8950 d) r=0.0895

12. The Cov (x, y) = 25; v(x) = 36, v(y) = 25 , then the coefficient of correlation is
a) 0.409 b) 0.416 c) 0.833 d) 0.277

Rank Correlation Coefficient “R”

13. If n = 10 and d2 = 280, then which of the following represents the value of rank
correlation coefficient?
a) 0.70 b) – 0.7 c) 0.645 d) None of the above

14. For two series we have, d2= 30 and N = 10, find the value of R. (symbols having
usual meanings).
a) 0.28 b) – 0. 82 c) 0. 82 d) – 0.28

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15. While computing rank correlation coefficient between profit and investment for the
last 6 years of a company the difference in rank for a year was taken 3 instead of 4.
What is the rectified rank correlation coefficient of it is know that the original value
of rank correlation was 0.4?
a) 0.3 b) 0.2 c) 0.25 d) 0.28

16. The ranks according to two attributes in a sample are given below. The rank
correlation between them would be:
R1: 1 2 3 4 5
R2: 1 2 3 4 5
a) 1 b) 0 c) –1 d) None of the above

17. The coefficient of rank correlation between the marks in Statistics and Mathematics
obtained by a certain group of students is 2/3 and the sum of the squares of the
differences in ranks is 55. How many students are there in the group?
a) 10 b) 9 c) 12 d) more than 15

18. If the sum of squares of differences of rank is 50 and number of items is 8 then what
is the value of rank correlation co-efficient
a) 0.59 b) 0.40 c) 0.36 d) 0.63

19. From the following data calculate the value of coefficient of Rank correlation:
X: 75 88 95 70 60 80 81 50
Y: 120 134 150 115 110 140 142 100
a) 0.93 b) – 0.85 c) 0.85 d) 0.63

20. In a beauty contest there were 10 competitors, rank of these candidates are assigned
by two judges A and B. The sum of squares of difference of rank is 44. The value of
rank correlation is
a) 0.70 b) 0.73 d) 0.80 d) 0.60

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21. Find the coefficient of rank correlation between marks obtained by students in
Auditing and Statistics:

Student (Roll No.) Marks in Auditing Marks in Statistics


1 30 15
2 20 40
3 40 40
4 50 45
5 30 20
6 20 30
7 30 15
8 50 50
9 10 20
10 0 10

a) 0.63 b) 0.83 c) 0.36 d) None of the above

Concurrent Deviation Method

22. What is the coefficient of concurrent deviations for the following data:
Supply: 68 43 38 78 66 83 38 23 83 53 48
Demand: 65 60 55 61 35 75 45 40 85 80 85
a) 0.82 b) 0.85 c) 0.89 d) – 0.81

23. For 10 pairs of observations, number of concurrent deviations was found to be 4.


What is the value of the co-efficient of concurrent deviation?
a) b) c) d)

24. If C = 0, N = 7, then coefficient of concurrent deviations is:


a) 1 b) – 1 c) 0.5 d) – 0.5

25. What is the coefficient of concurrent deviations for the following data:
Year : 1996 1997 1998 1999 2000 2001 2002 2003
Price : 35 38 40 33 45 48 49 52
Demand : 36 35 31 36 30 29 27 24
a) -1 b) 0.43 c) 0.5 d)

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26. The coefficient of concurrent deviation for p pairs of observation was found to be
1/ . If the number of concurrent deviations was found to be 6, then the value of p
a) 10 b) 9 c) 8 d) None of these

Change of Origin and Change of Scale

27. If U = ax + b, V = -cy + d, where a and c are positive. If the coefficient of correlation


between U and V is 0.4, then the coefficient of correlation between x and y is:
a) 0.4 b) – 0.4 c) 0.4 c/a d) None of the above

28. If u + 5x = 6 and 3y - 7v = 20 and the correlation coefficient between x and y is 0.58


then where would be the correlation coefficient between u and v?
(a) 0.58 (b) -0.58 (c) -0.84 (d) 0.84

29. If rxy = 0.6, what will be the value of ruv, where u = 3x + 5 and v = - 4y + 3?
a) – 0.6 b) 0.6 c) 0.36 d) 0.66

30. If the correlation coefficient between the variables x and y is 0.5, then the correlation
coefficient between the variables u = 2x-4 and v = 3-2y is :
a) 1 b) 0.5 c) -0.5 d) 0

31. The coefficient correlation between x and y series is – 0.38. The linear relation
between x and u ; y and v are 3x+5u=3 and -8v-7y=44, what is the coefficient
between u and v?
a) 0.38 b) -0.38 c) 0.40 d) None of these

Miscellaneous Concepts

32. Probable error of r is how many times the standard error of r?


a) 6.745 b) 67 c) 0.6745 d) 0.4765

33. Coefficient of non-determination is:


a) r2 b) 1 + r2 c) 1 – r2 d) 1

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34. A relationship r2 = is not possible

a) True b) False c) Both d) None

35. If coefficient of correlation x and Y variables is 0.90 then what will be co-efficient
of determination?
a) 0.30 b) 0.81 c) 0.94 d) None of these

36. Find the probable error of r if r = 0.05 and n = 25.


a) 0.1928 b) 0.1345 c) 0.0129 d) 0.0192

37. If r = + 0.526 and no. of observation are 50, what is the probable error of “r”?
a) 0.069 b) 0.6623 c) 1.6623 d) –0.6629

Theoretical Aspects
38. If r = 0, then there is _______ correlation between the two variables.
a) Negative b) Positive
c) No d) Both positive and negative

39. Correlation co-efficient is ______ of the units of measurement


a) Dependent b) Independent c) Both d) None

40. In Case of “insurance companies” profit and the number of claims They have pay
there is ______ correlation.
a) Positively b) Negative c) No of correlation d) None of these

41. The co-efficient of correlation between the temperature of environment and power
consumption in India is always:
a) Positive b) Negative c) Zero d) Equal to 1

42. If the variables are inversely proportional to each other, then statistically they are
_________ correlated.
a) Positively b) Not
c) Negatively d) None of the above

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43. Which of the following regarding value of “r” is TRUE?


a) “r” is a pure number
b) “r” lies between –1 and +1 both inclusive
c) Neither (a) nor (b)
d) Both a) and b) are true

44. For which of the following statements the correlation will be positive?
a) Age and Income
b) Speed of an automobile and the distance travelled by it after applying brakes
c) Sale of cold-drinks and day temperature
d) All of the above are positively correlated

45. For which of the following statements the correlation will be negative?
a) Production and price per unit
b) Sale of woolen garments and day temperature
c) Neither (a) nor (b)
d) Both a) and b) above

46. Which of the following is the example of variables which are uncorrelated?
a) Profit & Investment
b) Price & Demand of an item
c) Shoe-size & Intelligence
d) Yield & Rainfall

47. Karl Pearson’s correlation coefficient may be defined as:


a) The ratio of covariance between the two variables to the product of the
standard deviations of the two variables.
b) The ratio of covariance between the two variables to the product of the variance
of the two variables.
c) The ratio of product of standard deviations of the two variables to the covariance
between the two variables.
d) None of the above.

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48. Which of the following statement(s) are Valid?


a) Positive value of correlation coefficient between x and y implies that if x
decreases, y tends to increase.
b) Correlation coefficient is independent of the origin of reference but is dependent
on the units of measurement.
c) Correlation coefficient between u and v turned out to be – 1.02.
d) None of the above given statement(s) is/are valid.

Properties:

49. In case the correlation coefficient between two variables is 1, which of the following
would be the relationship between the two variables?
a) y = p + qx, q > 0
b) y = p + qx, q < 0
c) y = p + qx, p > 0, q < 0
d) Both a) and b) above

50. If the relationship between two variables x and y is given by 22x + 33y + 84 = 0, then
the value of correlation coefficient between x and y will be:
a) 1.00 b) 0 c) – 1.00 d) Between 0 and 1.00

51. Which of the following regarding value of “r” is TRUE?


a) It is not affected by change in scale.
b) It is not affected by change of origin.
c) It is both affected by change in scale and origin.
d) Both a) and b) above are true.

52. Rank correlation is useful when we study the relationship between __________
characteristics.
a) Quantitative b) Qualitative
c) Both a) and b) above d) Either a) or b) above

53. Rank of beauty contest by two judges are in reverse orders the find the value of
spearmen’s rank correlation co-efficient
a) -1 b) 0 c) 1 d) 0.75

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54. Spearman’s rank correlation formula is given by R = , where D stands for:


a) Sum of the rank of the two variables
b) Difference between the rank of two variables
c) Both a) and b) above
d) Either a) or b) above

55. If x and y are two correlated variable, then which of the following is true?
a) Var(x+y)=Var(x)+Var(y)+ 2Cov(x,y)
b) Var(x+y) = Var(x) + Var(y)
c) Var(x – y) = Var(x) – Var(y)
d) None of the above is true

56. If x and y are two uncorrelated variables, then which of the following relation is
TRUE?
a) Var (x + y) = Var (x) + Var (y)
b) Var (x - y) = Var (x) + Var (y)
c) Both a) and b) above are true
d) Only a) above is true

57. In the method of concurrent deviations, only the direction of change (Positive/
Negative direction) in the variable are taken into account for calculation of
a) Co efficient of SD
b) Co efficient of regression
c) Co efficient of correlation
d) None

58. Relation between ranks _____
a) Linear b) May (or) may not be linear
c) Both (a) and (b) d) None

59. Sum of the difference in ranks is always _____


a) 1 b) 2 c) -1 d) 0

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Application of r:
60. ________ of correlation co-efficient is a measure of reliability.
a) Standard Error b) Statistical Error
c) Probable Error d) Both a) and c) above

61. Coefficient of Determination is:


a) Square of coefficient of correlation
b) Cube of coefficient of correlation
c) Square root of coefficient of correlation
d) None of the above

62. Standard Error of “r” is given by:


a) b) c) d) None of the above

63. The ratio of coefficient of non-determination and the square root of the number of
observation is known as:
a) Probable Error b) Error
c) Standard Error d) None of the above

Scatter Diagram:
64. When the correlation coefficient r=+1, all the points in a scatter diagram would be
a) On a straight line directed from upper left to lower right
b) On a straight line directed from lower left to upper right
c) On a straight line
d) Both (a) and (b)

65. The co-efficient of correlation between x and y is 0.6. if x and y both are multiplied
by -1, then the co-efficient of correlation will be:
a) 0.6 b) - 0.6 c) d)

66. _____________ is the simplest way of the diagrammatic representation of bivariate


data.
a) Time Series Graph b) Radar Diagram
c) Frequency Polygon d) Scatter Diagram

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67. The scatter diagram gives us the ______ ideas about the correlation between the
two variables.
a) Exact b) Vague c) No d) None of the above

68. Scatter Diagram fails to:


a) Distinguish between different types of correlation
b) Measure the extent of relationship between the variables
c) Both a) and b) above
d) None of the above

69. On a scatter diagram if one is not able to recognize a specific pattern, then the two
variables depicts _______ correlation.
a) No
b) Positive
c) Both negative and positive
d) Perfectly Negative

Bivariate Data:
70. For bivariate data, there exist how many types of relationship between the variables?
a) One b) Two c) Three d) More than three

71. If the data are collected for two variables simultaneously, it is known as:
a) Univariate Data
b) Bivariate Data
c) Conditional Data
d) Marginal Data

72. The frequency distribution related to two variables collected at the same point of
time is known as:
a) Bivariate Frequency Distribution
b) Joint Frequency Distribution
c) Two-way Frequency Distribution
d) All of the above

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73. From the Bivariate Frequency Distribution, we can obtain which of the following
Univariate distribution?
a) Marginal distribution
b) Conditional distribution
c) Both a) and b) above
d) Neither a) nor b) above

74. The total number of cells in (m x n) bivariate frequency table are:


a) m + n b) m – n c) m d) mn

75. In a bivariate frequency distribution, if there m classification for x and n classification


for y, then there would be altogether ____ conditional distributions.
a) m + n b) m – n c) m d) mn

76. In (m × n) bivariate frequency table, the maximum number of marginal distributions


is:
a) 1 b) 2
c) No marginal distribution exists d) m + n

77. In a (m x n) bivariate distribution table, some of the cell frequencies may be:
a) Zero b) Negative
c) Both a) and b) above d) None of the above

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REGRESSION ANALYSIS

Introduction
• Regression is the average linear relationship between two or more variables.

• The word regression implies “estimation or prediction”. In other words through regression
equations we can quantify the relationship between two variables and we can predict the
average value of one variable corresponding to a specific value of the other.

• It establishes a functional relationship between two variables.

• Regression equation enables us to find the nature and the extent of relationship between
two variables. Correlation can measure only the degree of association between the two
variables whereas regression quantifies such relationship.

• The two variables are dependent and independent variable. Thus, we try to estimate the
average value of dependent variable, for a specified value of independent variable using
regression analysis.

• If there are two variables, then the independent variable is called the “Regressor” or
“Explaining Variable” and the dependent variable is called the “Regressed” or “Explained
Variable”.

• Regression analysis is an absolute measure showing a change in the value of y or x for


a corresponding unit change in the value of x or y whereas correlation coefficient is a
relative measure of linear relationship between x and y.

• This average linear relationship between two variables is expressed by means of two
straight line equation known as regression lines or regression equations.

• If there are two variables x and y we can have the following two types of regression lines,
i. Regression equation of y on x (y dependent, x independent)
ii. Regression equation of x on y (x dependent, y independent)

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  REGRESSION LINES

Regression equation of y on x: Regression equation of x on y:


• •

• byx stands for regression coefficient of • bxy stands for regression coefficient of
y on x x on y

• Here y depends on x • Here x depends on y

• Here y is a dependent/explained and • Here x is a dependent/explained and


x is an independent variable x is an independent variable

• This equation will be of the form • This equation will be of the form
y = a + bx x = a + by

• This equation is used to estimate the • This equation is used to estimate the
value of y given the value of x value of x given the value of y

• The slope of this equation is byx • The slope of this equation is bxy

• The regression line of y on x is the • The regression line of x on y is derived


straight line on the scatter diagram by the minimization of horizontal
for which the sum of squares of distance in the scatter diagram using
vertical distances of the points is method of least square.
minimum.
• The principle which is applied for
• The principle which is applied for deriving the two lines of regression is
deriving the two lines of regression is known as “Method of Least Squares”.
known as “Method of Least Squares”.

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CALCULATION OF REGRESSION COEFFICIENTS

Regression coefficient of y on x (byx): Regression coefficient of x on y (bxy):


1. Using co-variance: 1. Using co-variance:

2. Without any deviations (Directly 2. Without any deviations (Directly
from x and Y values) from x and Y values)


3. When deviations are taken from 3. When deviations are taken from
actual mean i.e., and such that actual mean i.e., and such that


4. When deviations are taken from 4. When deviations are taken from
assumed mean say A & B for x and y, assumed mean say A & B for x and y,
u=x-A, v = y-B u=x-A, v = y-B


5. Using ‘r’ 5. Using ‘r’


and r = Correlation co-efficient between and r = Correlation co-efficient between
x and y x and y

Properties of regression coefficients

1. byx = slope of the regression line of y on x which measures the change in variable y for a unit
change in variable x.

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2. bxy= slope of the regression line of x on y which measures the change in variable x for a unit
change in variable y.

3. Correlation coefficient is symmetric i.e., ryx= rxy but regression coefficients are not
symmetric byx bxy .

4. When r = 0, both the regression coefficients are 0.

5. Both the regression coefficients will have same sign.

6. Correlation coefficient is the geometric mean between regression coefficients i.e.,

7. Sign analogy of byx, bxy and r

byx bxy r

+ + +
- - -

Note:
When byx and bxy are of opposite signs, data are inconsistent, r is imaginary.

8. Regression coefficients are independent of the Change of Origin but they are dependent on
Change of Scale. If and then

i. byx = bvu

ii. bxy= buv

9. There is no specific range within which two regression coefficients will lie but their values
should be such that the square root of the product of two regression coefficients must lie
between -1 and +1 (both inclusive). Thus, if one of the regression coefficient, is greater
than unity then the other must be less than unity.

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Properties of regression lines:

• Two regression lines always intersect at their mean or average values ( . In other
words if we solve two regression equations we get the average values of x and y.

• When r = 0, then

i. byx = bxy=0

ii. The two regression lines thus reduces to; y = and x =

iii. Nothing can be predicted from the two regression lines since, the variables become
independent.

iv. The angle between the two regression lines becomes 90o i.e., they are perpendicular to
each other.

• When r = , then
i. The two regression lines become identical i.e., they coincide.

ii. byx=

iii. Perfect linear co-relationship is observed and the angle between the two regression
lines becomes 0o.

iv. For a particular value of x we shall obtain a specific value of y.

• As the angle between two regression lines numerically decreases from 90o to 0o, the
correlation increases from 0 to 1 and the two regression lines comes closer to each other.

• Angle between two regression lines; if A is the angle between two regression lines then
tan A =

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Miscellaneous Properties:

• In regression analysis, the difference between the Observed value and the Estimated value
is known as Residue or Error.

• Proportion of Total Variance explained by regression analysis is r2.

• Proportion of Total Unexplained Variance is (1- r2).


• Standard error of estimate of x(Sxy) is given by Sxy= or

• Standard error of estimate of y(Syx) is given by Syx= or

• When r2=1 , then;
i.

ii. Explained variance = Total Variance

iii. The whole of the total variance is explained by regression.

iv. The unexplained variation is zero

v. All the points on the scatter diagram will lie on the regression line

vi. There is a perfect linear dependence between the variables

vii. The two regression lines coincide

viii. For a given value of one variable, we have a fixed value of the other variable

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CLASSWORK SECTION

1. From the following data, find the regression equation of X on Y:


X 1 2 3 4 5
Y 2 3 5 4 6
a) X = 0.9Y + 0.6 b) X = 0.9Y – 0.6
c) X = 0.9Y + 1.3 d) X = 0.9Y – 1.3

2. Taking data from the previous question, find the regression equation of Y on X.
a) Y = 0.9X – 1.3 b) Y = 0.9X – 0.6
c) Y = 0.9X + 1.3 d) Y = 0.9X + 0.6

3. The information given below relates to the advertisement expenses and sales
revenue of a company.
Adv Exp Rs. Lakh Sales Rs Lakh
Mean 20 100
S.D. 3 12
r = +0.8

What should be the advertisement expenditure, if the company wants to attain a

sales target of Rs. 120 lakh?

a) Rs. 20,00,000 b) Rs. 24,00,000


c) Rs. 18,00,000 d) None of the above

4. Given the following data:


Variable: x y
Mean: 80 98
Variance: 4 9
Coefficient of correlation = 0.6
What is the most likely value of y when x = 90 ?
(a) 90 (b) 103 (c) 104 (d) 107

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5. Given below the information about the capital employed and profit earned by a
company over the last twenty five years:
Mean SD
Capital employed (0000 `) 62 5
Profit earned (000 `) 25 6
Correlation coefficient between capital employed and profit = 0.92. The sum of the
Regression coefficients for the above data would be:
(a) 1.871 (b) 2.358 (c) 1.968 (d) 2.346

6. With bxy = 0.5,. r = 0.8 and variance of y = 16, standard deviation of x equals to:
a) 6.4 b) 2.5 c) 10.0 d) 26.5

7. For the regression line of y on x, 2x + 3y + 50 = 0, find the value of byx.


a) 2/3 b) – 2/3 c) – 3/2 d) None of the above

8. Regression equation of Y on X is 8X – 10Y + 66 = 0 and SD(x) = 3, find the value of


Cov (x, y).
a) 11.25 b) 7.2 c) 2.4 d) None of the above

9. If Mean of x = 10, Mean of y = 50, SD(x) = 3, SD(y) = 15, r = 0.9, then find the
estimated value of x for corresponding y = 100.
a) 18 b) 19 c) 20 d) 21

10. While calculating the coefficient of correlation between two variables X and Y the
following results were obtained:
The number of observation N=25


It was however, later discovered at the time of checking that two pairs of observations
(X,Y) were copied (6,14) and (8,6) while the correct values (8,12) and (6,8) respectively.
The correct value of byx is:
a) 0.6 b) 0.7 c) 0.8 d) 0.65

11. If 4y – 5x = 15 is the regression line of y on x and the coefficient of correlation


between x and y is 0.75, what is the value of the regression coefficient of x on y?
(a) 0.45 (b) 0.9375 (c) 0.6 (d) none of these

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12. If the regression coefficient of y on x, the coefficient of correlation between x and y


and variance of y are –3/4, - and 4 respectively, what is the variance of x

(a) (b) 16/3 (c) 4/3 (d) 4

13. The two regression coefficients for the following data:


x: 38 23 43 33 28
y: 28 23 43 38 8
are
(a) 1.2 and 0.4 (b) 1.6 and 0.8 (c) 1.7 and 0.8 (d) 1.8 and 0.3

Properties of Regression Coefficients

14. If byx = 0.8, bxy = 0.46, then the value of r is:


a) 0.60 b) 0.61 c) 0.51 d) None of the above

15. If r = 0.4, bxy = 0.2, then find the value of byx.


a) – 0.8 b) 0.8 c) 0.2 d) None of the above

16. Regression Coefficient of y on x=0.8. Regression coefficient of x on y =0.2 coefficient


of correlation = -0.4. Given data is:
a) Accurate b) Inaccurate c) True d) None

17. If bxy = - 1.2 and byx = - 0.3, then the coefficient of correlation between x and y is:
a) – 0.698 b) – 0.36 c) – 0.51 d)– 0.6

18. If the regression coefficient of y on x is 4/3, then the regression coefficient of x on y


is:
a) More than 1 b) Less than 1
c) Less than zero d) None of the above

19. Given bxy = 1.36, byx = 0.613, then the value of coefficient of determination is:
a) 0.734 b) 0.634 c) 0.534 d) 0.834

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20. Given bxy = 0.756, byx = 0.659, then the value of coefficient of non-determination is
given by:
a) 0.402 b) 0.502 c) 0.602 d) 0.702

21. Find the mean of x and y, if the two regression lines are
3x – y – 5 = 0 and 2x – y – 4 = 0.
a) 1, - 2 b) – 1, 2 c) 2, - 1 d) – 2, - 1

22. Given x = 4y + 5 and y = kx + 9 are the lines of regression of x on y and y on x


respective. If k = 1/16, the the value of r is:
a) 0.4 b) 0.5 c) 0.6 d) 0.9

23. A relationship r2 = 1 – 5/14, is it possible?


a) Possible b) Impossible
c) May be possible d) None of the above

24. If the Coefficient of non-determination is 0.502, then the Coefficient of alienation is:
a) 0.71 b) 0.61 c) 0.51 d) 0.81

25. Given n = 4, r=1, then the standard error of estimate of X of Y is :


a) 1 b) 0 c) 2 d) 3

26. Given =3, =12 and r=1 then the standard error of estimate of X on Y is:
a) 4 b) 3 c) 2 d) 0

Change of Origin and Change of Scale

27. If u = 2x + 5, v = -3y – 6, and the regression coefficient of y on x is 2.4, the regression


coefficient of v on u is:
a) 1.6 b) – 3.6 c) 3.6 d) – 1.6

28. If u = 2x + 5, v = -3y + 1, and the regression coefficient of y on x is – 1.2, the


regression coefficient of v on u is:
a) 1.8 b) – 1.8 c) 3.26 d)0.8

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Identification Problems
29. Which of the following regression equations represents regression lines of Y on X :
7x + 2y + 15 =0, 2x + 5y + 10 =0
a) 7x + 2y+15=0 b) 2x+5y+10=0
c) Both a) and b) above d) None of these

30. In a partially destroyed record, the following data are available: variance of
x = 9 and the regression lines are 8x – 10y + 66 = 0 and 40x – 18y = 214, find the
coefficient of correlation between x and y.
a) – 0.6 b) 0.36 c) – 0.36 d) + 0.6

31. Taking data from the previous question, what would be the standard deviation of y?
a) 9 b) 4 c) 6 d) 5

32. Two random variables have the regression lines 3x+2y=26 and 6x+y=31. The
coefficient of correlation between x and y is :
a) -0.25 b) 0.5 c) -0.5 d) 0.25

33. For a bivariate data, two types of regression are 40x – 18y =214 and 8x-10y+66=0,
then find the values of and
a) 17 and 13 b) 13 and 17 c) 13 and -17 d) -13 and 17

34. The equations of two regression lines are x + y = 6 and x + 2y = 10, then the value
of correlation between x and y is

a) b) c) d)

35. The two regression lines are 7x-3y-18=0 and 4x-y-11=0. Find the value of byx and
bxy

a) b) c) d) none of these

36. The two lines of regression are given by


8x + 10y = 25 and 16x + 5y = 12 respectively.
If the variance of x is 25, what is the standard deviation of y?
(a) 16 (b) 8 (c) 64 (d) 4

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Theoretical Aspects

37. The word regression is used to denote ________ of the average value of one
variable for a specified value of the other variable.
a) Estimation b) Prediction
c) Either a) or b) above d) None of the above

38. Regression methods are meant to determine:


a) The nature of relationship between the variables.
b) The functional relationship between the two variables.
c) Both a) and b) above
d) Neither a) nor b) above.

39. Regression analysis is a mathematical measure of the _________ relationship


between two or more variables in term of the original units of the data.
a) Continuous b) Direct
c) Average d) Both b) and c) above

40. The two types of variables in regression analysis are:


a) Direct & Indirect b) Dependent & Independent
c) Discrete & Continuous d) None of the above

41. The dependent variable in the regression analysis is one:


a) Which influences the value of the independent variable.
b) Whose value is to be predicted.
c) Which can choose its value independently.
d) None of the above.

42. If the curve plotted on a Scatter Diagram is a straight line, it is called the:
a) Line of correlation b) Line of scatter diagram
c) Line of regression d) Both a) and c) above

43. The estimation in regression analysis is done by means of suitable equations,


derived on the basis of available bivariate data. Such an equation is known as:
a) Recursive Equations b) Recurring Equations
c) Regression Equations d) Both a) and c) above

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44. The geometrical representation of regression equations is known as:


a) Straight Line b) Regression Line
c) Regression Curve d) Scatter Curve

45. The line of regression is:


a) The line which gives the best estimate to the value of one variable for any
specified value of the other variable.
b) The line which gives the best estimate to the value of all variables for any
arbitrary value of a constant variable.
c) The line showing the nature of relationship between two or more variables.
d) None of the above.

46. For two variables, the number of regression lines would be:
a) 1 b) 3 c) 2 d) Greater than 3

47. For the relationship between two variables X and Y, we have which of the
following’s lines of regression?
a) Y on X b) X on Y
c) Both a) and b) above d) Only b) above

48. Which of the following regression equations is used to estimate Y, when the value
of X is known?
a) X on Y b) Y on X
c) Either of the two can be used d) Neither of the two can be used

49. Since Yield of a crop depends upon amount of rainfall, we need to consider:
a) The regression equation of yield on rainfall
b) The regression equation of rainfall on yield
c) Any one of a) or b) above can be considered
d) Neither of a) or b) can be considered

50. The line Y = a + bX, represents the regression equation of:


a) X on Y b) Y on X
c) Both a) and b) above d) Neither a) nor b) above

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51. The method applied for deriving the regression equations is:
a) Fitting of Normal Equations b) Rank Correlation Method
c) Least Square Method d) Product Moment Method

52. In a regression equation Y = a + bX, what is “b”?


a) The intercept which the line cuts in the Y-axis.
b) The intercept which the line cuts in the X-axis.
c) The slope of the line.
d) Both a) and c) above.

53. Regression coefficient of X on Y is denoted by:


a) bxy b) byx c) a d) axy

54. The slope of the regression line of x on y is given by:


a) bxy b) byx c) 1/bxy d) 1/byx

55. The regression line of x on y is derived by:


a) The minimization of vertical distance in the scatter diagram.
b) The minimization of horizontal distance in the scatter diagram.
c) Either a) or b) above.
d) Both a) and b) above.

56. Regression line of y on x is :


a) That straight line on the scatter diagram for which the sum of squares of
vertical distances of the points is minimum.
b) That straight line on the radar diagram for which the sum of squares of
horizontal distances of the points is maximum.
c) That straight line on the scatter diagram for which the sum of squares of
vertical distances of the points is maximum.
d) None of the above.

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Properties:
57. When the slope of two regression lines are equal:
a) The lines are perpendicular to each other.
b) The lines will coincide.
c) The lines will be parallel to each other.
d) None of the above.

58. If r = +1, the two lines of regression become:


a) Perpendicular to each other.
b) Identical
c) Parallel to each other.
d) Either a) or c) above.

59. The regression coefficients are zero if:


a) r = 1 b) r = 2 c) r = 0 d) r = -1

60. Correlation coefficient is the _______ of the two regression coefficients.


a) Harmonic Mean
b) Geometric Mean
c) Arithmetic Mean
d) Both b) and c) above

61. The sign analogy of correlation coefficient and two regression coefficients is:
a) -, +, + b) -, -, - c) +, +, + d) Both b) and c) above

62. The point of intersection of two regression lines is:


a) (x, y) b) c) d) None

63. As “r” increases numerically from 0 to 1, the angle between the regression lines:
a) Increases from 0o to 90o
b) Diminishes from 90o to 0o
c) Increases from 0o to 180o
d) Both a) and c) above

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64. When r = 0, the regression lines are:


a) Parallel to each other
b) Perpendicular to each other
c) Coincides
d) Either a) or b) above

65. If correlation coefficient between two variables is zero, which of the following is
true?
a) Both regression coefficients are greater than one.
b) Both regression coefficients are negative.
c) One of the regression coefficient is zero.
d) Both regression coefficients are zero.

66. In regression analysis the difference between the observed value and the
estimated value is known as:
a) Residue b) Deviation c) Error d) Either a) or c) above

67. Which of the following(s) is/are TRUE regarding regression coefficient?


a) If bxy > 0, then r < 0
b) If bxy < 0, then r > 0
c) If the variable X and Y are independent, the regression coefficient is zero.
d) The range of regression coefficient is –1 to +1.

68. Which of the following statement/s is/are FALSE regarding the regression
coefficient?
a) If one of the regression coefficient is greater than unity the other one is less
than unity.
b) The product of two regression coefficient is equal to the square of the correlation
coefficient between the two variables.
c) The regression coefficient lies between – infinity to + infinity.
d) None of the above is FALSE.

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69. The regression coefficients remain unaffected due to a:


a) Change of scale
b) Change of origin
c) Both a) and b) above
d) None of the above

70. The two lines of regression become identical when


a) r=1 b) r= -1 c) r = 0 d) (a) or (b)

71. Out of the following which is correct?

a) b) c) d)

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HOMEWORK SECTION

1. The coefficient of correlation r between x and y when:


Cov(x, y) = –16.5, Var(x) = 2.89, Var(y) = 100 is:
(a) – 0.97 (b) 0.97 (c) 0.89 (d) –0.89

2. Take 200 and 150 respectively as the assumed mean for X and Y series of 11 values,
then dx = X – 200, dy = Y – 150, dx = 13 dx2 = 2667, dy = 42, dy2 = 6964, dx
dy = 3943. The value of r is:
(a) 0.77 (b) 0.98 (c) 0.92 (d) 0.82

3. For some bivariate data, the following results were obtained for the two variable x
and y:
= 53.2, = 27.9, byx = -1.5, bxy = -0.2
The most probable value of y when x = 60 is:
(a) 15.6 (b) 13.4 (c) 19.7 (d) 17.7

4. If the sum of squares of the rank difference in mathematics and physics marks of 10
students is 22, then the coefficient of rank correlation is:
(a) 0.267 (b) 0.867 (c) 0.92 (d) None

5. Two random variables have the regression lines 3x + 2y = 26 and 6x + y = 31. The
coefficient of correlation between x and y is:
(a) – 0.25 (b) 0.5 (c) – 0.5 (d) 0.25

6. The coefficient of correlation between X and Y is 0.6. U and V are two variables
defined as U = , V = , then the coefficient of correlation between U and
V is:
(a) 0.6 (b) 0.4 (c) 0.8 (d) 1

7. For the following data, the coefficient of rank correlation is:


Rank in Botany 1 2 3 4 5
Rank in Chemistry 2 3 1 5 4
(a) 0.93 (b) 0.4 (c) 0.6 (d) None

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8. The following data is given, based on 450 students for marks in Statistics and
Economics at a certain examination:
Mean marks in statistics = 40
Mean marks in Economics = 48
S.D. of marks (Statistics) = 12
Variance of marks (Economics) = 256
Sum of the products of deviations of marks from their respective mean = 42075
The average marks in Economics of candidates who obtained 50 marks in Statistics
is:
(a) 45 (b) 54.5 (c) 54 (d) 47.5

9. For 10 pairs of observations, number of concurrent deviations was found to be 4.


What is the value of the coefficient of concurrent deviation?
(a) (b) 1/3 (c) –1/3 (d)

10. If the covariance between two variables is 20 and the variance of one of the variables
is 16, what would be the variance of the other variable?
(a) More than 10 (b) More than 100
(c) More than 1.25 (d) Less than 10

11. Assume 69 and 112 as the mean values for X and Y respectively. dx = 47, dx2 =
1475, dy = 108, dy2 = 3468, dx dy = 2116 and N = 8. When dx = X – 69,
dy = Y – 112. Then the value of r is:
(a) 0.95 (b) 0.65 (c) 0.75 (d) 0.85

12. In rank correlation, the association need not be linear:


(a) True (b) False (c) Partly True (d) Partly False

13. The lines of regression are as follows: 5x – 145 = –10y ; 14y – 208 = –8x. The mean
value is:
(a) (12, 5) (b) (5, 7) (c) (7, 12) (d) (5, 12)

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14. The coefficient of rank correlation of marks obtained by 10 students, in English and
Economics was found to be 0.5. It was later discovered that the difference in ranks
in the two subjects obtained by one student was wrongly taken as 3 instead of 7.
The correct coefficient of rank correlation is:
(a) 0.32 (b) 0.26 (c) 0.49 (d) 0.93

15. Given the following data:


bxy = 0.4 & byx = 1.6. The coefficient of determination is:
(a) 0.74 (b) 0.42 (c) 0.58 (d) 0.64

16. The method applied for deriving regression equations is known as:
(a) Concurrent deviation (b) Product moment
(c) Least squares (d) Normal equation

17. The coefficient of correlation between x and y series from the following data:
X series Y series
Number of pairs of observations 15 15
Arithmetic Mean 25 18
Standard Deviation 3.01 3.03
Sum of the squares of deviation from mean 136 138

Sum of the product of the deviations of x and y series from their respective means
= 122, is:
(a) 0.89 (b) 0.99 (c) 0.69 (d) 0.91

18. If the lines of regression in a bivariate distribution are given by x + 2y = 5 and


2x + 3y = 8, then the coefficient of correlation is:
(a) 0.866 (b) – 0.666 (c) 0.667 (d) – 0.866

19. If the correlation coefficient between two variables is 1, then the two lines of
regressions are:
(a) Parallel (b) At right angles
(c) Coincident (d) None of these

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20. If the sum of square of differences of rank is 50 and number of items is 8 then what
is the value of rank of rank correlation coefficient
(a) 0.59 (b) 0.40 (c) 0.36 (d) 0.63

21. If coefficient of correlation between x and y is 0.46. Find coefficient of correlation


between x and
(a) 0.46 (b) 0.92 (c) – 0.46 (d) – 0.92

22. Given the regression equations as 3x + y = 13 and 2x + 5y = 20. Find regression


equation of y on x.
(a) 3x + y = 13 (b) 2x + y = 20
(c) 3x + 5y = 13 (d) 2x + 5y = 20

23. The coefficient of correlation is significant if:


(a) r > 5 P.E. (b) r < 6 P.E.
(c) r 6 P.E. (d) r = 6 P.E.

24. The two regression equations are:


2x + 3y + 18 = 0
x + 2y – 25 = 0
find the value of y if x = 9
(a) – 8 (b) 8 (c) – 12 (d) 0

25. The correlation coefficient between x and y is – ½. The value of bxy = – 1/8.
find byx.
(a) – 2 (b) – 4 (c) 0 (d) 2

26. Ranks of two characteristics by two judges are in reverse order then find the value
of spearman rank correlation co-efficient.
(a) – 1 (b) 0 (c) 1 (d) 0.75

27. Which of the following regression equations represent regression line of Y on X:


7x + 2y + 15 = 0 ; 2x + 5y + 10 = 0
(a) 7x + 2y + 15 = 0 (b) 2x + 5y + 10 = 0
(c) Both (a) and (b) (d) None of these

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28. If the rank correlation co-efficient between marks in Management and Mathematics
for a group of students is 0.6 and the sum of the squares of the difference in ranks
is 66. Then what is the number of students in the group?
(a) 9 (b) 10 (c) 11 (d) 12

29. Correlation coefficient between X and Y will be negative when:


(a) X and Y are decreasing (b) X is increasing, Y is decreasing
(c) X and Y are increasing (d) None of these

30. The two regression lines are 7x – 3y – 18 = 0 and 4x – y – 11 = 0. Find the values of
byx and bxy.
(a) 7/3, ¼ (b) –7/3, –1/4
(c) –3/7, –1/4 (d) None of these

31. If ‘P’ is the simple correlation coefficient, the quantity P2 is known as:
(a) Coefficient of determination
(b) Coefficient of Non-determination
(c) Coefficient of alienation
(d) None of the above

32. ______ of the regression Coefficients is greater than the correlation coefficient
(a) Combined mean (b) Harmonic mean
(c) Geometric mean (d) Arithmetic mean

33. If the correlation coefficient between x and y is r, then between



U = and V = is

(a) r (b) –r (c) (r – 5)/2 (d) (r – 7)/10

34. If the two lines of regression are


x + 2y – 5 = 0 and 2x + 3y – 8 = 0
The regression line of y on x is
(a) x + 2y – 5 = 0 (b) 2x + 3y – 8 = 0
(c) Any of the two line (d) None of the two lines

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35. If the sum of the product of deviations of x and y series from their means is zero,
then the coefficient of correlation will be
(a) 1 (b) –1 (c) 0 (d) None of these

36. The ranks of five participants given by two judges are:


Participants
A B C D E
Judge 1 1 2 3 4 5
Judge 2 5 4 3 2 1
Rank correlation coefficient between ranks will be

(a) 1 (b) 0 (c) –1 (d) ½

37. Regression coefficient are _____


(a) dependent of change of origin and of scale
(b) independent of both change of origin and of scale
(c) dependent of change of origin but not of scale
(d) independent of change of origin but not of scale

38. Given: = 16, x = 4.8


= 20, y = 9.6
The coefficient of correlation between x and y is 0.6. What will be the regression
coefficient of ‘x’ on ‘y’?
(a) 0.03 (b) 0.3 (c) 0.2 (d) 0.05

39. If the two lines of regression are


x + 2y – 5 = 0 and 2x + 3y – 8 = 0
The regression line of y on x is
(a) x + 2y – 5 = 0 (b) 2x + 3y – 8 = 0
(c) Any of the two line (d) None of the two lines

40. The covariance between two variables X and Y is 8.4 and their variances are 25 and
36 respectively. Calculate Kari Pearson’s coefficient of correlation between them
(a) 0.82 (b) 0.28 (c) 0.01 (d) 0.09

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41. For a bivariate data, two lines of regression are 40x–18y = 214 and 8x–10y+66 = 0,
then find the values of mean of x and y?
(a) 17 and 13 (b) 13 and 17
(c) 13 and – 17 (d) – 13 and 17

42. Three competitors in a contest are ranked by two judges in the order 1, 2, 3 and 2,
3, 1 respectively. Calculate the Spearman’s rank correlation coefficient.
(a) – 0.5 (b) – 0.8 (c) 0.5 (d) 0.8

43. Out of the following which one affects the regression co-efficient.
(a) Change of Origin only
(b) Change of scale only
(c) Change of scale & origin both
(d) Neither change of origin nor change of scale

44. For a bivariate data, the lines of regression of Y on X, and of X on Y are respectively
2.5Y – X = 35 and 10X – Y = 70, then the Correlation coefficient r is equal to:
(a) 0.2 (b) – 0.2 (c) 0.5 (d) – 0.5

45. If one of regression coefficient is ______ unity, the other must be _____ unity.
(a) more than, more then (b) Less than, Less then
(c) more than, less than (d) Positive, Negative

46. If Y is dependent variable and X is independent variable and the S.D. of X and Y are
5 and 8 respectively and Co-efficient of co-relation between X and Y is 0.8. Find the
Regression coefficient of Y on X.
(a) 0.78 (b) 1.28 (c) 6.8 (d) 0.32

47. If the regression lines are 8x – 10y + 66 = 0 and 40x – 18y = 214, the correlation
coefficient between ‘x’ and ‘y’ is:
(a) 1 (b) 0.6 (c) – 0.6 (d) –1

48. The coefficient of correlation between two variables x and y is the simple _____ of
the two regression coefficients.
(a) Arithmetic Mean (b) Geometric Mean
(c) Harmonic Mean (d) None of the above

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49. If 2 variables are uncorrelated, their regression lines are


(a) Parallel (b) Perpendicular
(c) Coincident (d) Inclined at 45 degrees

50. If the covariance between variables X and Y is 25 and variance of X and Y are
respectively 36 and 25, then the coefficient of correlation is
(a) 0.409 (b) 0.416 (c) 0.833 (d) 0.0277

51. If , denote the arithmetic means, x


, y
denotes the standard deviations bxy, byx
denote the regression coefficients of the variables ‘x’ and ‘y’ respectively, then the
point of intersection of regression lines x on y & y on x is ____
(a) (b) (c) (d)

52. In Spearman’s Correlation Coefficient, the sum of the differences of ranks between
two variables shall be ____
(a) 0 (b) 1 (c) – 1 (d) None of the above

53. For certain x and y series which are correlated, the two lines of regression are
5x – 6y + 9 = 0
15x – 8y – 130 = 0
The correlation coefficient is
(a) 4/5 (b) 3/4 (c) 2/3 (d) 1/2

54. The Coefficient of correlation between x and y series is – 0.38. The linear relation
between x & u and y & v are 3x + 5 u = 3 and –8y–7v=44, what is the coefficient of
correlation between u & v?
(a) 0.38 (b) – 0.38 (c) 0.40 (d) None of the above

55. If y = 18x + 5 is the regression line of x on y value of bxy is


(a) 5/18 (b) 18 (c) 5 (d) 1/18

56. If ‘r’ be the Karis Pearson’s coefficient of correlation in a bivariate distribution then
the two regression lines are at right angle if:
(a) r = ± 1 (b) r=0
(c) r = ± any finite value whose numerical value is less than 1
(d) None of these

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57. If the regression equations are 8x – 3y + 50 = 0 and 14x – 7y – 60 = 0 and standard


deviation of y is 1. The coefficient of correlation is _____
(a) 2 (b) 1 (c) 0.87 (d) – 0.87

58. The coefficient of correlation between two variables x and y is 0.28. Their covariance
is 7.6. If the variance of x is 9, then the standard deviation of y is:
(a) 8.048 (b) 9.048
(c) 10.048 (d) 11.048

59. Two variables x and y are related according to 4x + 3y = 7. Then x and y are:
(a) Positively correlated (b) Negatively correlated
(c) Correlation is zero (d) None of these

60. Determine the coefficient of correlation between x and y series:


x Series y Series
No. of items 15 15
Sum of sq. of deviation of mean 136 138
Arithmetic mean 25 18
Sum of product of deviation of x and y series from mean = 122
(a) – 0.89 (b) 0.89 (c) 0.69 (d) – 0.69

61. Price and Demand is the example for


(a) No correlation (b) Positive correlation
(c) Negative (d) None of the above

62. If mean of x and y variables is 20 and 40 respectively and the regression coefficient
of y on x is 1.608, then the regression line of y on x is
(a) y = 1.608x + 7.84 (b) y = 1.5x + 4.84
(c) y = 1.608x + 4.84 (d) y = 1.56x + 7.84

63. When the value of correlation coefficient is + 1 or –1, then the two regression lines
will _____
(a) have 30° angle between them (b) have 45° angle between them
(c) coincide (d) be perpendicular to each other

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64. Two regression lines for a bivariate data are: 2x – 5y + 6 = 0 and 5x – 4y + 3 = 0.


Then the coefficient of correlation should be:

(a) (b) (c) (d)

65. When each individual gets the exactly opposite rank by the two Judges, then the
rank correlation will be ____
(a) 0 (b) –1 (c) + 1 (d)

66. If the mean of the two variables ‘x’ and ‘y’ are 3 and 1 respectively. Then the
equation of two regression lines are ______
(a) 5x + 7y – 22 = 0, 6x + 2y – 20 = 0
(b) 5x + 7y – 22 = 0, 6x + 2y + 20 = 0
(c) 5x + 7y + 22 = 0, 6x + 2y – 20 = 0
(d) 5x + 7y + 22 = 0, 6x + 2y + 20 = 0

67. The equation of two lines of regression for ‘x’ and ‘y’ are 5x = 22 + y and
64x = 24 + 45y then the value of regression coefficient of ‘y’ on ‘x’ will be _____
(a) 5 (b)

(c) (d)

68. If the correlation coefficient between two variables is zero, then the lines of regression
are:
(a) Parallel (b) Perpendicular (c) Coincide (d) None of these

69. If the value of correlation coefficient between x & y is 1, then the value of correlation
coefficient between u = x – 2 and v = is:
(a) 1 (b) –1 (c) –1/2 (d) 1/2

70. The equations of two regression lines are x + y = 6 and x + 2y = 10, then the value
of correlation coefficient between x and y is:
(a) –1/2 (b) +1/2 (c) (d)

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71. Two regression lines are


16x – 20y + 132 = 0
80x – 36y – 428 = 0
The value of the correlation coefficient is
(a) 0.6 (b) – 0.6 (c) 0.54 (d) 0.45

72. When the correlation coefficient r is equal to + 1, all the points in a scatter diagram
would be
(a) On a straight line directed from upper left to lower right
(b) On a straight line directed from lower left to upper right
(c) On a straight line
(d) Both (a) and (b)

73. Out of following which is correct?

(a) (b)

(c) (d)

74. In case of “Insurance Companies” profits and the number of claims they have to pay
there is ____ correlation.
(a) Positive (b) Negative
(c) No correlation (d) None of the above

75. Two Regression equations are as follows:


Regression equation of x on y : 5x – y = 22
Regression equation of y on x : 64x – 45y = 24
What will be the mean of x and y?
(a) (b)
(c) (d)

76. If the coefficient of correlation between X and Y variables is + 0.90 then what will
be the coefficient of determination?
(a) 0.30 (b) 0.81 (c) 0.94 (d) None of these

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77. The two lines of regression become identical when


(a) r = 1 (b) r = –1 (c) r = 0 (d) (a) or (b)

78. If r = 0.6, then the coefficient of determination is


(a) 0.4 (b) – 0.6 (c) 0.36 (d) 0.64

79. The two regression lines always pass through


(a) means (b) S.Ds
(c) (a) and (b) (d) None of these

80. Out of the following the one which effects the regression coefficient is
(a) Change of origin only
(b) Change of scale only
(c) Change of scale and origin both
(d) Neither change in origin nor change of scale

81. The regression equation x and y is 3x + 2y = 100, the value of bxy

(a) (b) (c) (d)

82. in a beauty contest there were 10 competitors. Rank of these candidates are assigned
by two judges A and B. The sum of squares of differences of ranks is 44. The value
of rank correlation is:
(a) 0.70 (b) 0.73 (c) 0.80 (d) 0.60

83. The coefficient of correlation between the temperature of environment and power
consumption is always:
(a) Positive (b) Negative (c) Zero (d) Equal to 1

84. If two regression lies are x + y = 1 and x – y = 1 then mean values of x and y will be:
(a) 0 and 1 (b) 1 and 1 (c) 1 and 0 (d) – 1 and – 1

85. The coefficient of correlation between x and y is 0.6. If x and y values are multiplied
by –1, then the coefficient of correlation will be:
(a) 0.6 (b) – 0.6 (c) (d) 1 – 0.6

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86. If two regression lines are 5y = 9x – 22 and 20x = 9y + 350, then the value of
correlation coefficient (r) will be:
(a) 0.10 (b) –0.10 (c) – 0.90 (d) 0.90

87. The regression coefficient is independent of the change of:


(a) Origin (b) Scale
(c) Both (a) and (b) (d) Neither (a) nor (b)

88. If r = 0.6 then the coefficient of non-determination will be:


(a) 0.40 (b) – 0.60 (c) 0.36 (d) 0.64

89. The correlation coefficient (r) is the _____ of the two regression coefficients (byx and
bxy)
(a) AM (b) GM (c) HM (d) Median

90. If there is a constant increase in a series, then the corresponding graph will be
(a) Convex curve
(b) Concave curve
(c) Parabola
(d) Straight line from the left to the right

91. If the plotted points is a scatter diagram are evenly distributed, then the correlation
is
(a) Zero (b) Negative (c) Positive (d) (a) or (b)

92. The covariance between two variables is


(a) Strictly positive
(b) Strictly negative
(c) Always zero
(d) Either positive or negative or zero

93. The coefficient of determination is defined by the formula

(a) (b)

(c) both (a) and (b) (d) none

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94. In the method of Concurrent Deviations, only the directions of change (Positive
direction/Negative direction) in the variables are taken into account for calculation
of
(a) Coefficient of SD (b) Coefficient of regression
(c) Coefficient of correlation (d) none

95. Correlation coefficient is ______ of the units of measurement


(a) dependent (b) independent
(c) both (d) none

96. In case speed of an automobile and the distance traveled by the car after applying
brakes correlation is
(a) Positive (b) Negative (c) Zero (d) None

380
97. A relationship r2 = 1 – 200 is not possible
(a) True (b) False (c) Both (d) None

98. Rank correlation coefficient lies between


(a) 0 to 1 (b) –1 to + 1 inclusive of these value
(c) –1 to 0 (d) both

99. The two lines of regression intersect at the point


(a) Mean (b) Mode (c) Median (d) None of these

100. If the two lines of regression are x + 2y – 5 = 0 and 2x + 3y – 8 = 0, then the


regression line of y on x is:
(a) x + 2y – 5 = 0 (b) 2x + 3y – 8 = 0
(c) x + 2y = 0 (d) 2x + 3y = 0

101. If the two regression lines are 3X = Y and 8Y = 6X, then the value of correlation
coefficient is
(a) 0.5 (b) – 0.5 (c) 0.75 (d) – 0.80

102. The regression coefficient is independent of the changed of


(a) Scale (b) Origin
(c) Scale and origin both (d) None of these

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103. If the correlation coefficient between the variables X and Y is 0.5, then the correlation
coefficient between the variables 2x – 4 and 3 – 2y is
(a) 1 (b) 0.5 (c) – 0.5 (d) 0

104. A.M. of regression coefficients is


(a) Equal to r (b) Greater than or equal to r
(c) Half of r (d) None

105. Given that :


X –3 –3/2 0 3/2 3
Y 9 9/4 0 9/4 9
Then Karl pearson’s coefficient of correlation is
(a) Positive (b) Zero (c) Negative (d) None

106. Find the probable error if r = and n = 36.


(a) 0.6745 (b) 0.067 (c) 0.5287 (d) None

107. Given the following series:


X 10 13 12 15 8 15
Y 12 16 18 16 7 18
The rank correlation coefficient r =

(a) (b)

(c) (d)

108. Determine Spearman’s rank correlation coefficient from the given data ,
n = 10:
(a) r = 0.82 (b) r = 0.32 (c) r = 0.40 (d) None of the above

109. If the regression line of Y on X is given by Y = X + 2 and Karl pearson’s coefficient of


correlation is 0.5 then = _____.

(a) 3 (b) 2 (c) 4 (d) None

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HOMEWORK SOLUTION

1. (a) Coefficient of correlation

2. (c) As we know

3. (d) The regression equation of y of x is:


or y = 107.7 – 1.5x
when x = 60 then
y = 107.7 – 1.5 × 60 = 17.7

4. (b) Co. efficient of rank correlation

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5. (c) The regression lines 3x + 2y = 26 and 6x + y = 31 are given


Let first equation be y on x and second be x on y respectively
Therefore, 3x + 2y = 26


\ byx = –3/2
and 6x + y = 31


\ by = –1/6
Now r2 = byx . bxy


= – 0.25
r = – 0.5
Hence, our assumption hold and r = – 0.5 ( – 1 r 1)
Note: r is negative because byx and bxy < 0
\x<0

6. (a) Since correlation coefficient (Karl Pearson’s) is independent of both scale and
origin, therefore,
p(u, v) = p(x, y) = 0.6
It may be noted that if
µ1 = ax1 + b and V1 = cy1 + d then
r(u, v) = P(x, y) if a and c are of same signs
– p(x, y) if a and c are of opposite signs

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7. (c)
S.No. Rank in Botany (x1) Rank in Chem (y1) d = x1y1 d2
1 1 2 –1 1
2 2 3 –1 1
3 3 1 2 4
4 4 5 –1 1
5 5 4 1 1
Total – – 0 8
Hence, coefficient of rank correlation

8. (b) Let x = Marks in statistics


and y = Marks in Economics
We know that

(x-x) (y-y)
bxy = 2
n5x
42075
bxy = = 0.65
450x144
a = y - bx
=48-0.65 (40) = 22
Now, y= a+bx
y = 22 + 0.65 x
When x = 50 then
y = 22 + 0.65 (50)
=54.5

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9. (c) Here C = 4, N = 10, So


n = N – 1 = 10 – 1 = 9


Here (2c – n) is negative, so negative sign is taken at both the places so,

10. (b) We know that,


Now, by definition

i.e. variance must be more than at least 25.


In other words, variance of the other variable, should be more than 100 in this
case.

11. (a)


12. (a) In spearman’s rank correlation, the association need not be linear since it is
based on ranks rather than on actual observations.

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13. (d) As we know, that the mean values of 2 regression equations are their points of
intersection, therefore solving the equations simultaneously.
Given:





Subtracting (4) from (3), we get:



14. (b) Coefficient of rank correlation:

15. (d) We know that, Coefficient of determination


r2 = byx × bxy
\ r2 = 16 × 0.4
r2 = 0.6 4

16. (c) When the relationship between two variables is linear, the method of least
squares is used for obtaining the best values of the constants in an appropriate
equation. Therefore, the above method is applied for deriving regression equation.

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17. (a) Here sx = 301, sy = 3.03, dx = 136


dy2 = 138, dx dy = 122 Here dx = x-x
We know that: and dy = y - y

18. (d) Let the lines of regression of Y on X and X on Y be


x + 2y = 5 and 2x + 3y = 8 respectively,
then

19. (c) As the value of r increases numerically from O to 1, the angle between regression
equations decreases from 90° to 0°. In other words, the farther the two regression
lines are from each other, the lesser is the degree of correlation (i.e. approaching
1) and nearer the two regression lines are to each other, the higher is the degree of
correlation (i.e. approaching + 1).
The above explanation clarifies if r = 1. The two lines of regressions are coincident.

20. (b) Given d2 = 50, n = 8

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21. (a) rxy = 0.46


We know that,
Let u = x and v =


ruv = 0.46
Note: The two correlation coefficients remain equal when b and d, the two scales
have similar signs.

22. (d) Let us assume that 2x + 5y – 20 = 0


represents the regression line of y on x and 3x + y – 13 = 0
Now, 2x + 5y – 20 = 0


Again, 3x + y – 13 = 0


Thus, r2 = byx × bxy


Since |r| 1 r2 1, our assumptions are correct. Thus, 2x + 5y – 20 = 0 truly
represents the regression line of y on x.

23. (c) The probable error of the coefficient of correlation helps in interpreting its
value. Since the coefficients of correlation are generally, computed from samples,
they, like other statistical quantities, are subjected to errors of sampling. So from
interpretation point of view probable error of the coefficient of correlation is
very useful. When r 6 × P.E., then coefficient of correlation is significant and the
correlation exists.

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24. (b) To find the value of y when x’s value is given, regression equation of Y on X
should be known.
Let us assume that 2x + 3y + 18 = 0 represents the regression line of Y on X”
and x + 2y – 25 = 0 represents the regression line of X on Y.
Now, 2x + 3y + 18 = 0


Again x + 2y – 25 = 0
x = 25 – 2y
\ bxy = –2
Thus, r2 = byx × bxy




Since |r| 1 = r2 1, our assumption is wrong. Thus, 2x + 3y + 18 = 0 truly
represents the regression line of X on Y and x + 2y – 25 = 0 truly represents the
regression line of Y on X.
\ x + 2y – 25 = 0 . . . (1)
Substituting x = 9 in (1)
9 + 2y – 25 = 0
2y = 25 – 9
y=
y=8
\ When x = 9 then y = 8

25. (a) Since r2 = bxy × byx


byx = –2

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CA FOUNDATION STATISTICS

26. (a) Lets solve this question by taking an example. Suppose the hypothetical value
of n be 5.
Then,
Rank by I Judge Ran by II Judge d = Rx Ry d2
(Rx) (Ry)
1 5 –4 16
2 4 –2 4
3 3 0 0
4 2 +2 4
5 1 +4 16
40
Spearman’s Rank Correlation Coefficient


Note:
Students may, however, solve this question by taking any value of n. But, they
should remember that the ranks given by two judges are in reverse order.

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CA FOUNDATION STATISTICS

27. (b) 7x + 2y + 15 = 0 . . . (1)


2x + 5y + 10 = 0 . . . (2)
Assume that 7x + 2y + 15 = 0 is the regression line of X on Y and 2x + 5y + 10
= 0 is the regression line of Y on X.


2x + 5y + 10 = 0



r2 = bxy × byx

r = –0.33
Since – 1 r 1 \ our assumption is correct So, 2x + 5y + 10 = 0 is the regression
line of Y on X.

28. (b) r = 0.6


d2 = 66


n(n2 – 1) = 990
n = 10
Therefore, the number of students = 10

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CA FOUNDATION STATISTICS

29. (b) When X and Y move in opposite direction, then correlation coefficient will be
negative.

30. (a) Assume that 7x – 3y – 18 = 0 is the line


7x – 3y – 18 = 0 of Y on X and 4x – y – 11 = 0 is of X on Y.
3y = 7x – 18


4x – y – 11 = 0
4x = y + 11




r2 = bxy × byx


Since value of r is lying between – 1 and 1 therefore our assumption was correct.
So, byx = and bxy =

31. (a) Better measure for measuring correlation is provided by the square of correlation
coefficient, known as ‘coefficient of determination’ which is expressed as

32. (d) Correlation Coefficient (r) is the Geometric Mean (G.M.) between two co
regression coefficients.


Since, AM > GM > HM
Therefore, AM of regression coefficients is greater than correlation coefficient.

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CA FOUNDATION STATISTICS

33. (a) x – 10u = 5 (1) eq.


y – 2v = 7 (2) eq.
Since correlation coefficient (Kari Pearson’s) is independent of both scale and
origin, therefore,
P(u, v) = p(x, y) = r
It may be noted that if
u1 = ax1 + b and v1 = cy1 + d, then
r(u, v) = p(x, y) if a and c are of same signs
r(u, v) = –p(x, y) if a and c are of opposite signs.

34. (a) Let us take equation (1)


x + 2y – 5 = 0 is regression line of y on x


Now, let us take equation (2)
2x + 3y – 8 = 0 is regression line of x on y


Here r2= bxy × byx = 0.33<1
Hence, x+2y-5 = 0 is regression line of y on x.

35. (c) Coefficient of correlation =




It is given that the above value
(Numerator)
Hence, Coefficient of correlation =

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CA FOUNDATION STATISTICS

36. (c)
Judge 1 (r1) Judge 2 (r2) d d2
A 1 5 –4 16
B 2 4 –2 4
C 3 3 0 0
D 4 2 2 4
E 5 1 2 16
40

Rank correlation coefficient


= 1 – 2 = –1

37. (d) Regression coefficient are independent of change of origin but not of scale (As
per Fundamental Principle)

38. (b) bxy


r = 0.6
SDx = 4.8
SDy = 9.6

39. (a) Let us take equation (1)


x + 2y – 5 = 0 is regression line of y on x


Now, let us take equation (2)
2x + 3y – 8 = 0 is regression line of x on y


Here r2= bxy × byx = 0.33<1
Hence, x+2y-5 = 0 is regression line of y on x.

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CA FOUNDATION STATISTICS

40. (b) Given: Cov (x, y) = 8.4


Variance of x = 25
\ S.D of x (sx) = = 5
and
\ Variance of y = 36
\ S.D. of y = = 6
\ Kari Pearson’s Coefficient of Correlation =



= 0.28

41. (b) Given: 40x – 18y = 214 . . . (1)


8x – 10y = –66
On solving (1) and (2) we get
x = 13 and y = 17

42. (a)

Rank by 1st Judge Rank by IInd Judge Diff. D = R1 – R2 D2


R1 R2

1 2 –1 1
2 3 –1 1
1 +2

Spearman’s Rank Correlation coefficient =




= – 0.5

43. (b) The regression coefficients remain unchange due to a shift of origin but change
due to a shift of scale.

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CA FOUNDATION STATISTICS

44. (a) The equation of regression line y on x is given by


2.5y – x = 35
2.5y = x + 35

On comparing
y = a + bx
we get b =

Now the equation of Regression line x on y in given by


10x – y = 70
10x = 70 + y


Comparing from x = a + by

we get b = bxy
coefficient of correlation (r) =


= 0.2

45. (c) If one of regression co-efficient is more than unity, the other must be less than
unity.

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CA FOUNDATION STATISTICS

46. (b) Given:


S.D. of x (sx) = 5
S.D. of y (sy) = 8
Co-eff. of Correlation (r) = 0.8
Regression co-eff of y on x

47. (b) Given : 1st Regression line


8x – 10y + 66 = 0
10y = 66 + 8x


y = 6.6 + 0.8x
on comparing y = a + bx
we get b = byx = 0.8
and IInd regression line
40x – 18y = 214
40x = 214 + 18y


x = 5.35 + 0.45y
on comparing x = a + by
we get b = bxy = 0.45
coefficient of correlation between x & y



= ± 0.6
\ r = 0.6 (\ bxy and byx are positive)

48. (b) The coefficient of correlation between two variables x and y is the simple
geometric mean of the two regression coefficient.

49. (b) If two variables are uncorrelated (i.e. r = 0) then regression lines are
perpendicular.

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CA FOUNDATION STATISTICS

50. (c) Given (Covariance) Cov (x, y) = 25


Variance of x = 36
S.D of x (sx) = = 36
Variance of y = 25
S.D of (sy) = = 5
Coefficient of correlation


= 0.833

51. (a) Since the two lines of regression pass through the point ( ), the mean values
( ) can be obtained as the point of intersection of the two regression lines.

52. (a) In spearman’s correlation coefficient, the sum of the differences of ranks
between two variable shall be any number.

53. (c) The lines of regression are


Coefficient of correlation


= ± 2/3

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CA FOUNDATION STATISTICS

54. (b) Given rxy = –0.38


Given linear relation between x & u and y & v are
3x + 5u = 3 and –8y – 7v = 44
5u = 3 – 3x 7v = –44 – 8y

y

u = a + bx v = c + dy

We get We get

y



ruv = – 0.38

55. (d) If y = 18x + 5


18x = –5 + y


x = a + by
We get b = bxy = 1/18

56. (b) If r = 0 the two regression lines are at right angle.

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CA FOUNDATION STATISTICS

57. (c) Regression Equation are


8x – 3y + 50 = 0 and 14x – 7y – 60 = 0
8x = –50 + 3y 7y = –60 + 14x


x = a + 3y y = a + bx
We get We get


= + 0.87

58. (b) Coeff of correlation (r) = 0.28


Cov (x, y) = 7.6
Var (x) = 9
S.D. (sx) = = 3
S.D. of y (sy) = ?
We know that


sy = 9.048

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CA FOUNDATION STATISTICS

59. (b) Given Regression Equation


4x + 3y = 7 and 4x + 3y = 7
3y = 7 – 4x 4x = 7 – 3y


y = a + bx x = a + by
We get We get
b = –4/3 = byx b = –3/4 = bxy


r = –1 (Negative correlated)

60. (b) Given N = 15,


Coeff of correlation Here dx = x-x
and dy = y - y

61. (c) Price and Demand is the example for negative correlation.

62. (a)
The Regression equation of line y on x

y – 40 = 1.608 (x – 20)
y – 40 = 1.608x – 32.16
y = 1.608x – 32.16 + 40
y = 1.608x + 7.84

63. (c) When the value of correlation coefficient is +1 or –1 then the two regression
line will coincide.

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CA FOUNDATION STATISTICS

64. (c) The Regression lines

65. (b) When each individual gets the exactly opposite rank by the two Judges, then
the rank correlation will be – 1.

66. (a) The equation of two Regression lines are


5x + 7y – 22 = 0, 6x + 2y – 20 = 0
by solving these equations we get,
x=3&y=1
So = 3 & = 1
(The Intersection of two regression lines are , )

67. (c) Given Regression Equation


5x = 22 + y and 64x = 24 + 45y
5x – y – 22 = 0 and 64x – 45y – 24 = 0
bxy = and byx =

So, bxy × byx 1 then byx = 64/45

68. (b) If the correlation coefficient b/w two variables is zero, then the lines of
regression are perpendicular.

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CA FOUNDATION STATISTICS

69. (b) Given rxy = 1


Let x – 2 = u and
x – 2 + u
Comparing from
x = a + bu –y + 2 = 2v
we get b = 1 y = 2 – 2v
on comparing
y = c + dv
we get
d = –2

70. (c) Given two Regression lines:


x + y = 6 and x + 2y = 10
x + y – 6 = 0 x + 2y – 10 = 0

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CA FOUNDATION STATISTICS

71. (a) Given: Regression line


= + 0.6

72. (b) When the correlation coefficient r is equal to ‘+1’, all the points in a scatter
diagram on a straight line directed from lower left to upper Right.

73. (b) byx =


where sy = S.D. of y, sx = S.D. of x
r = Coeff. of Correlation
74. (b) In case of Insurance Companies Profits and the Number of claims they have to
pay there is Negative Correlation.

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CA FOUNDATION STATISTICS

75. (c) Given Regression Equations


5x – y = 22 . . . (1)
64x – 45y = 24 . . . (2)
Multiply by 45 in equation (1) we get
225x – 45y = 990
equation (3) – equation (2)
225x – 45y = 990
64x – 45y = 24
– + –
–––––––––––––––
161x = 966
x=6
Putting x = 6 in equation (1)
5 × 6 – y = 22
30 – y = 22
y=8
=x=6
=y=8

76. (b) If coeff. of correlation (r) = 0.90


Coeff. of Determination = r2
= (0.90)2
= 0.81

77. (d) If r = –1 or + 1 then two lines of Regression become identical.

78. (c) If r = 0.6


Then Coeff. of determination = r2
= (0.6)2
= 0.36

79. (a) The two Regression lines passing through or (Interest) at their means.

80. (b) By shifting the scale, coefficient of regression is changed.\

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CA FOUNDATION STATISTICS

81. (a) The regression equation of x & y is


3x + 2y = 100
3x + 2y – 100 = 0

82. (b) Sum of squares of differences of ranks ( d2) = 44


No. of candidates n = 10
rR = ?
Formula:
Rank correlation


= 1 – 0.267
= 0.733
= 0.73

83. (a) The coefficient of correlation between the temperature of environment and
power consumption is always positive.

84. (c) Given regression line


x + y = 1 . . . (1)
Adding x – y = 1
________
2x = 2


x = 1 in equation (1) we get
1+y=1
y=0
Mean of x = x = 1
Mean of y = y = 0

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CA FOUNDATION STATISTICS

85. (a) The coefficient of correlation between X and Y is 0.6. If X and Y values are
multiplied by – 1 then coefficient to correlation remains unchanged. Then are
coefficient of correlation will be 0.6.

86. (d) Given two regression lines are


5y = 9x – 22 . . . (1) and 20x = 9y + 350 . . . (2)
9x – 5y – 22 = 0 and 20x – 9y – 350 = 0

87. (a) The regression coefficient is independent of the change of ‘origin’.


or
By shifting the origin, coefficient of regression is not changed.

88. (d) Given r = 0.6


Coefficient of non determination = 1 – r2
= 1 – (0.6)2
= 1 – 0.36
= 0.64
89. (b) The coefficient of correlation (r) is the G.M. of the two regression coefficient
(byx × bxy)

90. (d) If there is a constant increase in a series, then the corresponding graph will be
straight line from the left to the right.

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91. (a) If the plotted points in a scatter diagram are evenly distributed, then the
correlation is Zero.

92. (d) The Co-variance between two variables is either positive or negative or zero.

93. (c) The coefficient of determination = 1 –

94. (c) The Method of concurrent Deviation, only the directions of change (Positive
direction/ Negative direction) in the variables are taken into account for
calculation of Coefficient of correlation.

95. (b) Correlation coefficient is independent of the units of measurement.

96. (a) In case ‘speed of on automobile and the distance required to stop the car often
applying brakes’ correlation is positive.

97. (a) Given:


is not possible

is not possible
So, it is true.

98. (b) Rank correlation coefficient lies between – 1 to + 1 inclusive of both value.

99. (a) The two line of regression intersect at the point of Mean.

100. (a) Given two Regression lines are


x + 2y – 5 = 0 and 2x + 3y – 8 = 0


Here, byx × bxy 1 which is satisfied.
So 1st equation x + 2y – 5 = 0 is the Regression Equation y on x.

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101. (a) Given:


Regression line
3x = y and 8y = 6x
3x – y = 0 6x – 8y = 0


bxy =
Coeff. of correlation is given by

= 0.5

102. (b) The Regression coefficient is independent of the change of ‘Origin’.

103. (c) If coefficient of correlation rxy = 0.5


Given u = 2x – 4 and v = 3 – 2y
2x – u – 4 = 0 and 2y + v – 3 = 0


Here, b and d both have different sign so ruv = –rxy
= –0.5

104. (b) A.M. of Regression Coefficient is greater than or equal to r.

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105. (b) Given that:



x –3 –3/2 0 3/2 3
y 9 9/4 0 9/4 9
then Karlpearson’s Coefficient of Correlation is “Zero” because it is equally
distribute.

106. (b)

Probable Error P.E. = S.E.


= 0.067

107. (b) Given the following series:



x 10 13 12 15 8 15
y 12 16 18 16 7 18
In this question we use the formula of the Rank Correlation Coefficient.

i i
i=1

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108. (a) Here, d2 = 30, n = 10


Spearman’s rank correlation


= 0.82

109. (c) The regression line of y on x is given by y = x + 2
x–y+2=0




by x = 1
coeff. of correlation (r) = 0.5
then Regression coefficient y or x


1
=2
0.5

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CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 4


20 Marks

1. For a p x q bivariate frequency table, the maximum number of marginal


distributions is
a) p b) p+q c) 1 d) 2

2. For a p x q classification of bivariate data, the maximum number of conditional


distributions is
a) p b) p+q c) pq d) p or q

3. When high values of one variable are associated with high values of the other & low
values of one variable are associated with low value of another, then they are said
to be
a) Positively correlated b) Directly correlated
c) Both d) None

4. A small value of r indicates only a ____ linear type of relationship between the
variables
a) Good b) Poor c) Maximum d) Highest

5. ______ is a relative measure of association between two or more variables.


a) Coefficient of correlation b) Coefficient of regression
c) Both d) None

6. For finding degree of agreement about beauty between 2 judges in a Beauty Consent,
we use
a) Scatter diagram b) Coefficient of rank correlation
c) Coefficient of correlation d) Coefficient of concurrent deviation

7. If the plotted points in a scatter diagram are evenly distributed, then the correlation is
a) zero b) Negative c) Positive d) (a) or (b)

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8. The correlation coefficient being +1 if the slope of the straight line a scatter diagram
is
a) Positive b) Negative c) Zero d) None

9. If the covariance between two variables is 20 and the variance of one of the variables
is 16, what would be the variance of the other variable?
a) More than 100 b) More than 10
c) Less than 10 d) More than 1.25

10. If the relationship between two variables x and y is given by 2x+3y+4=0, then the
value of the correlation coefficient x and y is
a) 0 b) 1 c) -1 d) Negative

11. if r = 0.28. Cov (x, y) = 7.6, v (x) = 9, then sy =


a) 8.75 b) 9.04 c) 6.25 d) None

12. Coefficient of correlation between x and y for 20 items is 0.4. The AM’s and the SD’s
of x and y are known to be 12,15, 3 and 4 respectively. Later on, it was found that
the pair (20, 15) was wrongly taken as (15, 20). Find the correct value of correlation
coefficient.
a) 0.28 b) 0.31 c) 0.53 d) 0.47

13. What is the value of correlation coefficient Karl Pearson on the basis of the following
data:
X -4 -3 -2 -1 0 1 2 3 4
Y 18 11 6 3 2 3 6 11 18
a) 1 b) -1 c) 0 d) –0.5

14. If u + 5x = 6 and 3y – 7v =20 and the correlation coefficient between x and y is 0.58
then what would be the correlation between u and v?
a) 0.58 b) –0.58 c) -0.84 d) 0.84

15. Great advantage of ______ is that it can be used to rank attributes which cannot be
expressed by way of numerical value
a) Concurrent correlation b) Regression
c) Rank Correlation d) None

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16. For a group of 8 students, the sum of squares of difference in ranks for Maths and
Stats mark was found to be 50. What is the value of rank correlation coefficient?
a) 0.23 b) 0.40 c) 0.78 d) 0.92

17. If the rank correlation between marks in management and mathematics for a group
of students is 0.6 and the sum of square of the differences in ranks in 66, what is the
number of students in the group?
a) 10 b) 9 c) 8 d) 11

18. In method of concurrent deviations, only the directions of change (positive direction/
negative direction) in the variables are taken into account for calculation of
a) Coefficient of S.D b) Coefficient of regression
c) Coefficient of correlation d) None

19. For 10 pairs of observations, no of concurrent deviations was found to be 4. What is
the value of the coefficient of concurrent deviation?
a) b) c) d)

20. The Coefficient of concurrent deviation for p pairs of observation was found to be
. If the number of concurrent deviations was found to be 6, then the value of
p is
a) 10 b) 9 c) 8 d) None of these

Answer Key

1.                                                               
d 2.                                                           
  b
4.                                                           
3.                                                               
a   b
6.                                                           
5.                                                               
a   b
8.                                                           
7.                                                               
a   a
10.                                                          
9.                                                               
a   c
12.                                                          
11.                                                                
b   b
14.                                                          
13.                                                                
c   b
16.                                                          
15.                                                                
c   b
18.                                                          
17.                                                                
a   c
20.                                                          
19.                                                                
d   a

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EXPLANATORY
ANSWERS

1. For a bi-variate frequency distribution, there exists two marginal distribution, one
for variable x and another for variable y. Option D

2. For a p x q classification of bi-variate data, q conditional distributions exists for


variable x and p conditional distributions exists for variable y. Thus total number of
conditional distribution is (p + q). Option B

3. Both variables are moving in the same direction and association is high to high and
low to low. The two variables are positively correlated. Option A

4. A small value of r indicates a poor or low relationship between the two variables.
Option B

5. Coefficient of correlation is a relative measure of association between the two


variables. Option A

6. For finding the degree of agreement between 2 qualitative measurements, we use


coefficient of rank correlation. Option B

7. If the points are evenly distributed in a scatter diagram, the correlation is zero.
Option A

8. The correlation coefficient is +1, if the slope of the straight line is positive. Option A

9. r2 = 400/16.V. Maximum value of r2 = 1. Thus 25/V ≤ 1 or V ≥ 25. Only option that


fits in is a) more than 100. Option A

10. If 2x + 3y + 4 = 0 or y = -2/3 x – 4/3. Slope of the line is negative. The correlation


coefficient is negative. And since it is linear relationship, r = - 1. Option C

11. 0.28 = 7.6/3*Sy, or Sy = 7.6/(3*0.28) = 9.04. Option B

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12. Wrong data:


∑x = 12*20 = 240
∑y = 15*20 = 300
∑x2 = 20[33 + 122] = 20(9 + 144) = 3060
∑y2 = 20[42 + 152] = 20(16 + 225) = 4820
∑xy = 20[0.4(3*4) + (12*15)] = 20(4.8 + 180) = 3696

Correct data:
∑x = 240 + 20 – 15 = 245
∑y = 300 + 15 – 20 = 295
∑x2 = 3060 + 202 – 152 = 3235
∑y2 = 4820 + 152 – 202 = 4645
∑xy = 3696 + (20*15) – (15*20) = 3696

Cov(x,y) = 3696/20 – (245/20)(295/20) = 4.1125


Sx2 = 3235/20 – (245/20)2, Sx = 3.42
Sy2 = 4645/20 – (295/20)2, Sy = 3.83
r = 4.1125/(3.42*3.83) = 0.31
Option B

13. Calculation of correlation coefficient:

X Y X2 Y2 XY
-4 18 16 324 -72
-3 11 9 121 -33
-2 6 4 36 -12
-1 3 1 9 -3
0 2 0 4 0
1 3 1 9 3
2 6 4 36 12
3 11 9 121 33
4 18 16 324 72
0 2 60 984 0

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Since the values of x and y are equal in magnitude but opposite in sign.
Hence ΣXY = 0 and ΣX= 0.
∴ cov(x,y) =
=0–0
=0
∴R=0

14. The change of scale in x and y are in opposite direction. Thus correlation coefficient
between u and v = - 0.58. Option B

15. Rank correlation is used to rank attributes. Option C

16. R = 1 – 6(50)/(83 – 8) = 1 – [300/504] = 204/504 = 0.40. Option B

17. 0.6 = 1 – 6(66)/N(N2 – 1)


N(N2 – 1) = 990 = 9*10*11 = (N – 1)N(N + 10)
On comparing we get, N = 10.
Option A

18. Concurrent deviations method is used to calculate coefficient of correlation.


Option C

19. (2C – N)/N = (2*4 – 9)/9 = -1/9


r = - √-(-1/9) = - 1/3 = - 0.33 Option D

20. 1/3 = (2*6 – N)/N


N = 36 – 3N
4N = 36
N=9
P = 9 + 1 = 10
Option A

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CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 5


20 Marks

1. The regression analysis measures


a) The degree of co-variability between X and Y.
b) The variation of series
c) The variation of X series
d) Functional relationship between X and Y.

2. The line of y = a + bx represents the regression equation of


a) y on x b) x on y
c) both d) none

3. The difference between the observed value and the estimated value in regression
analysis is known as
a) Error b) Residue
c) Deviation d) (a) or (b)

4. If bxy and byx are the two regression coefficients, then – (Here ρ = r)
a) byx + bxy ≥ 2 r b)
c) d) None of these

5. r, bxy, byx all have _____ sign.


a) Different b) Same
c) Both d) None

6. The angle between the regression lines depends on


a) Correlation coefficient b) Regression coefficient
c) Both d) None

7. The equations Y = a+ bX and X = a + bY are based on the method of


a) greatest squares b) least squares
c) both d) none

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CA FOUNDATION STATISTICS

8. The regression line of y on x is derived by


a) the minimization of vertical distances in the scatter diagram
b) the minimization of horizontal distances in the scatter diagram
c) Both (a) and (b)
d) (a) or (b)

9. In the equation of x on y regression line, x = , the regression coefficient of x


on y is :

a) b)

c) d)

10. The regression equation are 8x – 10y + = 60 and 40x – 18y = 214. Find the coefficient
of correlation
a) b)

c) d) -1

11. If the mean of two variables x & y are 3 and 1 respectively. Then the equation of two
regression lines are
a) 5x + 7y - 22 =0 & 6x + 2y - 20 =0
b) 5x + 7y - 22 =0 & 6x + 2y + 20 =0
c) 5x + 7y + 22 =0 & 6x + 2y - 20 =0
d) 5x + 7y + 22 =0 & 6x + 2y + 20 =0

12. if two regression lines are: Y = 4 + kx and x = 5 + 4y, then the range of k is –
a) k ≤ 0 b) k ≥ 0
c) 0 ≤ k ≤ 1 d) 0 ≤ 4k ≤ 1

13. For the variables x and y, the regression equations are given as 7x – 3y – 18 = 0 and
4x – y – 11=0.
If the variance of x is 9, find the SD of y.
a) 8.5642 b) 6.2453
c) 9.1647 d) 7.4789

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CA FOUNDATION STATISTICS

14. If the regression line of y on x and that of x on y are given by y = -2x + 3 and
8x = -y + 3 respectively, what is the coefficient of correlation between x and y?
a) 0.5 b)
c) –0.5 d) None of these

15. If the regression coefficient of y on x, the coefficient of correlation between x and y


and variance of y are , and 4 respectively, what is the variance of x?

a) b) c) d) 4

16. Find the two regression equation from the following data and estimate y when is
13, x when y is 15.

x 2 4 5 5 8 10
y 6 7 9 10 12 12

a) 16.2546 and 11.2489 b) 15.2673 and 11.73


c) 14.6352 and 10.50 d) 18.2453 and 12.85

17. The coefficient of determination is defined by the formula

a) b)

c) Both d) None

18. The coefficient of correlation between two variables is 0.5, then the coefficient of
determination is
a) 0.5 b) 0.25
c) –0.5 d)

19. If the coefficient of correlation between two variables is 0.7 then the percentages of
variation unaccounted for is
a) 70% b) 30%
c) 51% d) 49%

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CA FOUNDATION STATISTICS

20. Find the coefficient of correlation when its probable error is 0.2 and the number of
pairs of item is 9.
a) 0.505 b) 0.332
c) 0.414 d) 0.316

Answer Key

1.                                                               
a 2.                                                           
  a
4.                                                           
3.                                                               
d   b
6.                                                           
5.                                                               
b   a
8.                                                           
7.                                                               
b   a
10.                                                          
9.                                                               
a   c
12.                                                          
11.                                                                
a   d
14.                                                          
13.                                                                
c   c
16.                                                          
15.                                                                
b   b
18.                                                          
17.                                                                
c   b
20.                                                          
19.                                                                
c   d

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CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS

1. The regression analysis measures functional relationship between x and y variables.


Option D

2. The line y = a + bx represents “y on x” regression line. Option A

3. The difference between the observed value and estimated value in regression
analysis is known as Error or Residue. Option D

4. Correlation coefficient is the GM between the two regression coefficients. And we


know that AM ≥ GM
(B1 + B2)/2 ≥ r. Option B follows.

5. The correlation coefficient (r), and the two regression coefficients must have the
same sign. Option B

6. The angle between the regression lines depends upon r. Option A

7. The regression equations are based on the method of least squares. Option B

8. The regression line y on x is derived by minimization of vertical distances in the


scatter diagram. The distances of how far is the point from the x-axis. Option A

9. Slope of the line is – 2/5. Option A

10. Let 8x – 10y = 60 is ‘y on x’ line


8x - 60 = 10y
y = 0.8x – 6
byx = 0.8
Let 40x – 18y = 214 is ‘x on y’ line
x = 18/40 y + 214/40
bxy = 18/40 = 0.45
r2 = 0.8 * 0.45 = 0.36
r = 0.6 Option C

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CA FOUNDATION STATISTICS

11. Mean of x & y is 3 and 1 respectively. For x = 3 and y = 1, the values fits in
5x + 7y – 22 = 0 and 6x + 2y – 20 = 0. Option A

12. y = 4 + kx
byx = k
x = 5 + 4y
bxy = 4
r2 = 4k
0 ≤ r2 ≤ 1
0 ≤ 4k ≤ 1
Option D

13. 7x – 3y = 18
byx = 7/3
4x – y = 11
bxy = ¼
r2 = 7/3 * ¼ = 7/12
byx2 = r2 * (Vy/Vx)
49/9 = 7/12 (Vy/9)
Vy = 84
SDy = √84 = 9.1647
Option C

14. Y = -2X + 3 is ‘Y on X’ line


bYX = - 2
8X = -Y + 3 is ‘X on Y’ line
bXY = -1/8
r2 = 2 * 1/8 = ¼ = 0.25
r = - 0.5
Option C

15. 9/16 = ¾ (4/Vx)


Vx = 16/3
Option B

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CA FOUNDATION STATISTICS

16. Fitting of regression lines:

X Y X2 Y2 XY
2 6 4 36 12
4 7 16 49 28
5 9 25 81 45
5 10 25 100 50
8 12 64 144 96
10 12 100 144 120
34 56 234 554 351

X = 34/6 = 5.67
Y = 56/6 = 9.33
Cov(x,y) = 351/6 – (34/6)(56/6) = 5.611
V(x) = 234/6 – (34/6)2 = 6.88
V(y) = 554/6 – (56/6)2 = 5.22
bxy = 5.611/5.22 = 1.07
byx = 5.611/6.88 = 0.81

Y, when X = 13
(Y – 9.33) = 0.81(13 – 5.67)
Y = 15.2673

X, when Y = 15
(X – 5.67) = 1.07(15 – 9.33)
X = 11.73

17. Coefficient of determination = r2


= explained variance/total variance
= 1 – (unexplained variance/total variance)
Option C

18. Coefficient of determination = r2 = (0.5)2 = 0.25. Option B

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CA FOUNDATION STATISTICS

19. Coefficient of determination = r2 = 0.72 = 0.49


Percentage of variation accounted for = 0.49*100 = 49%
Unaccounted for = 100 – 49 = 51%
Option C

20. PE = 0.6745 (SEr)

0.2 = 0.6745

0.2 = 0.6745

1 – r2 = 0.8895
r2 = 1 – 0.8895
r2 = 0.1104
r = 0.332
Option B

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CA FOUNDATION STATISTICS

INDEX NUMBERS

Basic Concepts
• Index Numbers are special kind of averages, expressed in ratio, calculated as
percentage and used as numbers.

• Index number is a number which is used as a tool for comparing prices and quantities
of a particular commodity or a group of commodities in a particular time period
with respect to other time period or periods.

• Index numbers indicate relative change in price or quantity or value expressed in


percentage.

• Index numbers are always unit free.

• The year in which the comparison is made is called the “Current Year” and the year
with respect to which the comparison is made is the “Base Year”.

• Suppose Price Index in 2011 is 800 based on 1980 prices, then


o 1980 means base year with help of which comparison is done.
o If nothing is mentioned, base prices are always taken as 100.
o 2011 is the current year or present year.
o 800 is the index number or price index number.

• Index numbers are of three types:


o Price Index – When the comparison is made in respect of prices it is called price
index numbers.

o Quantity Index – When the comparison is made in respect of quantities it is


called Quantity of Volume Index Numbers.

o Value Index – When comparison is made in respect of values


(Value = Price x Quantity), it is called Value Index Number.

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CA FOUNDATION STATISTICS

• Terminology (Unless otherwise mentioned we shall be using the following notations)


o I01 means Index Number for year “1” based on year “0”(Current with respect to base)
o I10 means Index Number for year “0” based on year “1”(base with respect to current)
o P1 = Prices prevailing in current year (year 1)
o P0 = Prices prevailing in base year (year 0)
o Q1 = Quantity in current year
o Q0 = Quantity in base year
o P0Q0 = Price x Quantity of Base Year (Value of the base year)
o P1Q1 = Price x Quantity of Current Year (Value of Current Year)
o V01 = Value Index of current year with respect to base year
o V10 = Value Index of base year with respect to current year

• Concept of price Relative (PR) :


Price relative is defined as the ratio of Current Year’s price to the Base Year’s price
expressed as percentage Symbolically,

I=

Construction of Price Index Numbers

Method of Aggregates

Case: 1 Case: 2
Simple Aggregate of prices Weighted Aggregate of prices

CALCULATION OF WEIGHTED AGGREGATE OF PRICES UNDER DIFFERENT TYPE OF


WEIGHTS
If w = Q0 If w = Q1
Laspeyre’s Index Paasche’s Index

Fisher’s Index Bowley’s Index


GM of L and P AM of L and P

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CA FOUNDATION STATISTICS

If w = Q0 + Q1
Marshall-Edgeworth Index

Relative Method
First calculate Price Relative (PR) of each commodity. Price Relative (PR) is defined as
the ratio of the current year’s price to the base year’s price, expressed as percentage
and is given by

Case: 1 Case: 2
Simple AM of Price Relative Weighted AM of Price Relative

n=number of Commodities ∑w= Total Weight

Note :
• GM is the best average in the construction of index numbers but practically we use
AM, because G.M is difficult to compute.

• Marshall- Edgeworth’s Index number is an approximation to Fisher’s index number.

• Methods of Relatives are also known as Arithmetic Mean Method.

• When a series of Index Numbers for different years are expressed in a tabular form to
compare the changes in different years, then this tabular representation of numbers
is known as “Index Time Series”.

Construction of Quantity Index Numbers


All the formula will remain same as in price index numbers, just interchange p and
q, i.e., p to q and q to p. For example; if Laspeyer’s Price Index is , then
Laspeyer’s Quantity Index we can get by interchanging P to Q and Q to P, and hence

it will be

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CA FOUNDATION STATISTICS

Construction of Value Index Number

Cost of Living Index (CLI)


• CLI is also known as Wholesale Price Index, Consumer Price Index or General Index.

• CLI is defined as the weighted AM of index numbers of few groups of basic necessities.
Generally for calculating CLI; food, clothing, house rent, fuel & lightning and miscellaneous
groups are taken into consideration.

• , where I = Individual Group Index and w = Group weight.

• Application of Cost of Living Index


o It helps to calculate the purchasing power of money and real income of the consumer.

o Increase in CLI implies increase in price index causing thereby an inflation i.e.
reduction in the purchasing power.

o Purchasing Power of 1 =

o Real Income =

• Concept of Equivalent Salary – Calculation of Dearness Allowances(D.A)


Suppose a person was getting a money income of ` X1 in Year 1 (Y1) when the CLI
was I1 and in Year 2 (Y2) the CLI is I2. If the person wants to maintain his former
standard of living as in Y1, then Real Income (RI) of Y1 should be equal to RI of Y2.

Thus Money Income required in Y2 =

Let the money income in Y2 is X2. If X2 is less than or equal to X1, then no allowances
are required to be given. But if X2 is greater than X1, then amount of Dearness
Allowances = (X2 – X1)

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CA FOUNDATION STATISTICS

Base Shifting in Index Numbers


• Base Shifting is a process whereby a new series of Index Numbers with a new base
year is formed from a given series of Index Numbers with another base year.

• Index Number for any year (with base year shifted) is given by:

Tests of Adequacy of Index Number


• Unit Test – An Index Number is a good index number if it is unit free. All index
numbers will satisfy this test except Simple Aggregate of Prices.

• Time Reversal Test (TRT) – According to this test I01 x I10 = 1 (ignore 100). This test is
satisfied by:
o Simple Aggregate of Prices
o Weighted GM of Price Relative
o Marshall Edgeworth Index
o Fisher’s Ideal Index

• Factor Reversal Test (FRT) – According to this test Price Index x Quantity Index = Value
Index. Only Fisher’s Ideal Index satisfies this test.

• Circular Test – Circular Test is an extension of Time Reversal Test. According to this
test I01 x I12 x I23 x .... x I(n-1), n x In,0 = 1. This test is satisfied by:
o Simple Aggregate of Prices (ie. Weighted Aggregate of Prices with Fixed Weights)
o Simple GM of Price Relatives

Fixed Base Method – Chain Base Method


• Under Fixed Base Method (FBM), all the index numbers are calculated with respect
to a fixed base period.

• Under Chain Base Method (CBM), all the index numbers are calculated with respect
to the price of immediate preceding period.

• Under CBM, the index number for the first year will always be 100.
• For the first year, Chain Base Index = Fixed Base Index.

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CA FOUNDATION STATISTICS

• FBI for any year =



• Chain Index Numbers
o Chain Index Numbers are calculated from Link Index Numbers or Link Relatives.
o Chain Index for any year =

o Link Relative =

Note: Always start with one year preceding to the given years from which you are to
calculate the chain index numbers. In that year (i.e. the preceding year) take both the link
relative and the chain index to be 100.

Splicing of Index Numbers


• Splicing is a process whereby two or more discontinued series of index numbers with
different base years are merged to form a new continuous series of index numbers
with a new base year.

• The factor which is multiplied for such conversion is called “Conversion Multiplier”.

• Let there are two series Y1 and Y2. When the series Y1 is merged into the series Y2,
it is known as “Forward Splicing” and when series Y2 is merged into series Y1, it is
known as “Backward Splicing”.

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CA FOUNDATION STATISTICS

CLASSWORK SECTION

CALCULATION OF PRICE RELATIVES AND LINK RELATIVES NUMBERS:


1. The following data relate to the price of rice per kg. in different years :
Year: 1998 1999 2000 2001 2002 2003 2004 2005
Price in Rs.: 6 7 7 8 10 14 12 13

(i) Find out price relatives : [100, 116.67, 116.67, 133.33, 166.67, 233.33, 200,
216.67] Taking 1998 as base
(ii) Also calculate the link relatives. [100, 116.67, 100, 114.29, 125, 140, 85.71,
108.33]

SIMPLE / UNWEIGHTED INDEX NUMBER :

2. From the following data

Commodity Base Price Current Price


Rice 35 42
Wheat 30 35
Pulse 40 38
Fish 107 120

The simple Aggregative Index is


(a) 115.8 (b) 110.8 (c) 112.5 (d) 113.4

3. From the following table by the method of relatives using Arithmetic mean the price
Index number is

Commodity Wheat Milk Fish Sugar


Base Price 5 8 25 6
Current Price 7 10 32 12

(a) 140.35 (b) 148.25 (c) 140.75 (d) None of these.

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4. Find the Index number by the method of Relatives (using Arithmetic Mean) from the
following data:

Commodity Base Price Current Price


Rice 35 42
Wheat 30 35
Pulse 40 38
Fish 107 120

a) 110.95 b) 115.27 c) 120.19 d) 125.25

WEIGHTED INDEX NUMBER :

5. If the ratio between Laspeyre’s index number and Paasche’s Index number is 28 : 27.
Then the missing figure in the following table P is :

Commodity Base Price Current Price


Price Quantity Price Quantity
X 1 10 2 5
Y 1 5 P 2

(a) 7 (b) 4 (c) 3 (d) 9

6. From the following data for the 5 groups combined

Group Weight Index Number


Food 35 425
Cloth 15 235
Power & Fuel 20 215
Rent & Rates 8 115
Miscellaneous 22 150


The general Index number is
(a) 270 (b) 269.2 (c) 268.5 (d) 272.5

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7. Given below are the data on prices of some consumer goods and the weights
attached to the various items Compute price index number for the year 1985 (Base
1984 = 100)

Items Unit 1984 1985 Weight


Wheat Kg. 0.50 0.75 2
Milk Litre 0.60 0.75 5
Egg Dozen 2.00 2.40 4
Sugar Kg. 1.80 2.10 8
Shoes Pair 8.00 10.00 1

Then weighted average of price Relative Index is :


(a) 125.43 (b) 123.17 (c) 124.53 (d) 124.52

8. From the following data


Group A B C D E F
Group Index 120 132 98 115 108 95
Weight 6 3 4 2 1 4
The general Index I is given by :
(a) 111.3 (b) 113.45 (c) 117.25 (d) 114.75

Refer to the follow data and answer the questions:


Commodity 1979 1980
Price in ` Quantity (kg) Price in ` Quantity(kg)
A 20 8 40 6
B 50 10 60 5
C 40 15 50 10
D 20 20 20 15

9. Which of the following represents Paasche’s Price Index Number:


a) 125.23 b) 124.70 c) 124.96 d) 125.95

10. Which of the following represents Laspeyer’s Price Index Number:


a) 125.23 b) 124.70 c) 124.96 d) 125.95

11. Which of the following represents Fisher’s Price Index Number:


a) 125.23 b) 124.70 c) 124.96 d) 125.95

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12. Which of the following represents Marshall-Edgeworth’s Price Index Number:


a) 125.23 b) 124.70 c) 124.90 d) 125.95

13. Bowley’s index number is 150. Fisher’s index number is 149.95. Paasche’s index number is
(a) 158 (b) 154 (c) 148 (d) 156

14. In calculating a certain cost of living index number the following weights were used.
Food 15, Clothing 3, Rent 4, Fuel & Light 2, Miscellaneous 1. Calculate the index for
the data when the average percentages rise in prices of items in the various groups
over the base period were 32, 54, 47, 78 & 58 respectively.
a) 139.76 b) 141.99 c) 141.76 d) 139.87

15. Calculate the Cost of Living Index number from the following data:
Items Price Weights
Base Year Current Year
Food 30 47 4
Fuel 8 12 1
Clothing 14 18 3
House Rent 22 15 2
Miscellaneous 25 30 1

a) 130 b) 124 c) 129 d) 135

16. Find x if Cost of Living Index is 150.


Group A B C D E
Index 200 150 140 100 120
Weights 6 4 X 3 4
(a) x = 5 (b) x = 4 (c) x= 2 (d) x= 3

17. Given The following Data:


Items Current Year Base Year
Price (`) Value (`) Value (`) Quantity (kg)
A 20 200 360 12
B 4 36 64 16
C 14 238 575 23

The quantity index using Bowley’s formula is:


a) 65.95 b) 75.95 c) 85.95 d) 95.95

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BASE SHIFTING
18. Shift the base period of the following series of index numbers from 1978 to 1985:
Year 1982 1983 1984 1985 1986 1987 1988
Index No. [Base 120 125 132 140 150 158 175
1978 =100]
a) 85.71, 89.29, 100, 94.29, 107.14, 112.86, 125
b) 85.71, 89.29, 94.29, 100, 107.14, 112.86, 125
c) 85.71, 89.29, 101.98, 94.29, 107.14, 112.86, 125
d) 85, 89, 94, 100, 107, 112, 125

CHAIN BASED AND FIXED BASED INDEX


19. Convert the following fixed base index numbers into chain base index numbers.
Year 2000 2001 2002 2003 2004 2005
FBI 376 392 408 380 392 400

Ans.
CBIN: 100 104.24 104.08 93.14 103.16 102.04

20. From the chain base index number given below, prepare fixed base index numbers.
Year 2000 2001 2002 2003 2004
CBI 80 110 120 90 140

Ans.
FBIN 80 88 105.6 95.04 113.06

21. From the following data


Year 1992 1993 1995 1996 1997
Link Index 100 103 105 112 108

(Base 1992 = 100) for the years 1993–97. The construction of chain index is :
(a) 103, 100.94, 107, 118.72 (b) 103, 108.15, 121.13, 130.82
(c) 107, 100.25, 104, 118.72 (d) None of these.

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SPLICING

22. The price relative for the year 2000 with base 1995 = 100 is 135. The price relative
for the year 1995 with base 1990 = 100 is 120. Find the price relative for 2000 with
base 1990 = 100.
(a) 100 (b) 83.33 (c) 162 (d) 135

Read the following data and answer the questions that follow:

Year Price Index A Price Index B


[Base Year: 2000] [Base Year: 2003]
2000 100
2001 110
2002 115
2003 120 100
2004 125
2005 135

23. When PI A is spliced with PI B, the spliced index for the year 2000 is:
a) 83.33 b) 93.33 c) 103.33 d) 113.33

24. When PI A is spliced with PI B, the spliced index for the year 2002 is:
a) 83.33 b) 93.33 c) 103.33 d) 95.83

25. When PI B is spliced with PI A, the spliced index for the year 2002 is:
a) 100 b) 110 c) 115 d) 120

26. When PI B is spliced with PI A, the spliced index for the year 2004 is:
a) 100 b) 125 c) 135 d) 150

DEARNESS ALLOWANCES/ EXTRA ALLOWANCES

27. Net monthly salary of an employee was ` 3000 in 1980. The consumer price index
number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated
then, dearness allowances to be paid to the employee is :
(a) ` 4.800.00 (b) ` 4,700.00 (c) ` 4,500.0 (d) None of these.

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28. Net Monthly income of an employee was ` 800 in 1980. The consumer price Index
number was 160 in 1980. It is rises to 200 in 1984. If he has to be rightly compensated.
The additional dearness allowance to be paid to the employee is :
(a) ` 240 (b) ` 275 (c) ` 250 (d) 200

REAL INCOME
29. During a certain period the cost of living index number goes up from 110 to 200 and
the salary of a worker is also raised from ` 325 to ` 500. The worker does not get
really gain. Then the real wages decreased by :
(a) ` 45.45 (b) ` 43.25 (c) ` 100 (d) 90.91

MISCELLANEOUS SUMS

30. In 1996 the average price of a commodity was 20% more than in 1995 but 20% less
than in 1994; and more over it was 50% more than in 1997 to price relatives using
1995 as base (1995 price relative 100) Reduce the data is :
(a) 150, 100, 120, 80 for (1994–97)
(b) 135, 100, 125, 87 for (1994–97)
(c) 140, 100, 120, 80 for (1994–97)
(d) None of these.

31. The price of a commodity increases from ` 5 per unit in 1990 to ` 7.50 per unit
in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units
in 1995. The price and quantity in 1995 are 150% and 75% respectively of the
corresponding price and quantity in 1990. Therefore, the product of the price ratio
and quantity ratio is :
(a) 1.8 (b) 1.125 (c) 1.75 (d) None of these.

32. When the cost of Tobacco was increased by 50%, a certain hardened smoker, who
maintained his formal scale of consumption, said that the rise had increased his
cost of living by 5%. Before the change in price, the percentage of his cost of living
was due to buying Tobacco is
(a) 15% (b) 8% (c) 10% (d) None of these.

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33. If the price index for the year, say 1960 be 110.3 and the price index for the year, say
1950 be 98.4, then the purchasing power of money (Rupees) of 1950 will in 1960 is
(a) ` 1.12 (b) ` 1.25 (c) ` 1.37 (d) None of these.

34. The consumer price Index for April 1985 was 125. The food price index was 120 and
other items index was 135. The percentage of the total weight for the food index is:
(a) 66.67 (b) 68.28 (c) 90.25 (d) None of these.

35. The total value of retained imports into India in 1960 was ` 71.5 million per month.
The corresponding total for 1967 was ` 87.6 million per month. The index of volume
of retained imports in 1967 compared with 1960 (= 100) was 62.0. The price index
for retained imports for 1967 with 1960 as base is
(a) 198.61 (b) 197.61 (c) 198.25 (d) None of these.

THEORETICAL ASPECTS

36. A series of numerical figures which show the relative position is called
a) index number b) relative number
c) absolute number d) none

37. Index number for the base period is always taken as


a) 200 b) 50 c) 120 d) 100

38. _________ play a very important part in the construction of index numbers.
a) weights b) classes c) estimations d) none

39. ________ is practically suitable for the construction of index numbers.


a) H.M. b) A.M. c) G.M. d) none

40. Index numbers show _________ changes rather than absolute amounts of change.
a) relative b) percentage c) both d) none

41. The ________ makes index numbers time-reversible.


a) A.M. b) G.M. c) H.M. d) none

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42. Price relative is equal to


a) Price in the given year x 100 b) Price in the base year x 100
Price in the base year Price in the given year
(c) Price in the given year x 100 (d) Price in the base year x 100

43. Index number is equal to


a) sum of price relatives b) average of the price relatives
c) product of price relative d) none
44. The ________ of group indices given the General Index
a) H.M. b) G.M. c) A.M. d) none

45. Circular Test is one of the tests of


a) index numbers b) hypothesis c) both d) none

46. ___________ is an extension of time reversal test


a) Factor Reversal test b) Circular test
c) both d) none

47. Weighted G.M. of relative formula satisfy ________test


a) Time Reversal Test b) Circular test
c) Factor Reversal Test d) none

48. Factor Reversal test is satisfied by


a) Fisher’s Ideal Index b) Laspeyres Index
c) Paasches Index d) none

49. Laspeyre’s formula does not satisfy


a) Factor Reversal Test b) Time Reversal Test
c) Circular Test d) all the above

50. A ratio or an average of ratios expressed as a percentage is called


a) a relative number b) an absolute number
c) an index number d) none

51. The value at the base time period serves as the standard point of comparison
a) false b) true c) both d) none

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52. Index numbers are often constructed from the


a) frequency b) class c) sample d) none

53. ________ is a point of reference in comparing various data describing individual


behaviour.
a) Sample b) Base period c) Estimation d) none

54. Sum of all commodity prices in the current year × 100


Sum of all commodity prices in the base year is
(a) Relative Price Index (b) Simple Aggregative Price Index
(c) both (d) none

55. Chain index is equal to


(a) link relative of current year × chain index of the current year)
100
(b) link relative of previous year × chain index of the current year
100
(c) link relative of current year × chain index of the previous year
100
(d) link relative of previous year × chain index of the previous year
100

56. P01 is the index for time


(a) 1 on 0 (b) 0 on 1 (c) 1 on 1 (d) 0 on 0

57. P10 is the index for time
(a) 1 on 0 (b) 0 on 1 (c) 1 on 1 (d) 0 on 0

58. When the product of price index and the quantity index is equal to the corresponding
value index then the test that holds is
(a) Unit Test (b) Time Reversal Test
(c) Factor Reversal Test (d) none holds

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59. The formula should be independent of the unit in which or for which price and
quantities are quoted in
(a) Unit Test (b) Time Reversal Test
(c) Factor Reversal Test (d) none

60. Laspeyre’s method and Paasche’s method do not satisfy


(a) Unit Test (b) Time Reversal Test
(c) Factor Reversal Test (d) b&c

61. The purpose determines the type of index number to use


(a) yes (b) no (c) may be (d) may not be

62. The index number is a special type of average


(a) false (b) true (c) both (d) none

63. The choice of suitable base period is at best temporary solution


(a) true (b) false (c) both (d) none

64. Fisher’s Ideal Formula for calculating index numbers satisfies the _______ tests
(a) Unit Test (b) Factor Reversal Test
(c) both (d) none

65. Fisher’s Ideal Formula dose not satisfy _________ test


(a) Unit Test (b) Circular Test
(c) Time Reversal Test (d) none

66. _________________ satisfies circular test


a) G.M. of price relatives or the weighted aggregate with fixed weights
b) A.M. of price relatives or the weighted aggregate with fixed weights
c) H.M. of price relatives or the weighted aggregate with fixed weights
d) none

67. Laspeyre’s and Paasche’s method _________ time reversal test


(a) satisfy (b) do not satisfy (c) are (d) are not

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68. There is no such thing as unweighted index numbers


(a) false (b) true (c) both (d) none

69. Theoretically, G.M. is the best average in the construction of index numbers but in
practice, mostly the A.M. is used
(a) false (b) true (c) both (d) none

70. Laspeyre’s or Paasche’s or the Fisher’s ideal index do not satisfy


(a) Time Reversal Test (b) Unit Test
(c) Circular Test (d) none

71. ___________ is concerned with the measurement of price changes over a period of
years, when it is desirable to shift the base
(a) Unit Test (b) Circular Test
(c) Time Reversal Test (d) (b) and (c) both

72. The test of shifting the base is called


(a) Unit Test (b) Time Reversal Test
(c) Circular Test (d) (b) and (c) both

73. Shifted price Index = Original Price Index × 100


Price Index of the year on which it has to be shifted
(a) True (b) false (c) both (d) none

74. The number of test of Adequacy is


(a) 2 (b) 5 (c) 3 (d) 4

75. We use price index numbers


(a) To measure and compare prices (b) to measure prices
(c) to compare prices (d) none

76. Simple aggregate of quantities is a type of


(a) Quantity control (b) Quantity indices
(c) both (d) none

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77. If the prices of all commodities in a place have increased to 1.25 times in comparison
to the base period, the index number of prices of that place now is
(a) 125 (b) 150 (c) 225 (d) None of these.

78. If the index number of prices at a place in 1994 is 250 with 1984 as base year, then
the prices have increased on average by
(a) 250% (b) 150% (c) 350% (d) None of these.

79. If the prices of all commodities in a place have decreased by 35% over the base
period prices, then the index number of prices of that place is now
(a) 35 (b) 135 (c) 65 (d) None of these.

80. Cost of Living Index (C.L.I.) numbers are also used to find real wages by the process
of
(a) Deflating of Index number. (b) Splicing of Index number.
(c) Base shifting. (d) None of these.

81. For constructing consumer price Index is used :


(a) Marshall Edge worth Method. (b) Paasche’s Method.
(c) Dorbish and Bowley’s Method. (d) Laspeyre’s Method.

82. Time Reversal Test is represented by symbolically is :


(a) P01 x Q01 = 1 (b) I01 x I10 = 1
(b) I01 x I12 x I23 x ... . I(n–1)n x In0 = 1 (d) None of these.

83. From the following data with 1966 as base year


Commodity Quantity (Units) Values (`)
A 100 500
B 80 320
C 60 150
D 30 360

The price per unit of commodity A in 1966 is


(a) ` 5 (b) ` 6 (c) `` 4 (d) ` 12

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HOMEWORK SECTION

1. Index Number for the base period is always taken as


a) 200 b) 1 c) 50 d) 100

2. P01 is the index for time


a) 1 on 0 b) 0 on 1 c) 1 on 1 d) 0 on 0

3. P10 is the index for time


a) 1 on 0 b) 0 on 1 c) 1 on 1 d) 0 on 0

4. In the data group Bowley’s index number = 150 and Laspeyre’s index number = 180.
What is the Paasche’s index number?
a) 120 b) 30 c) 165 d) None of the above

5. If Laspeyre’s index number is 90 and Paasche’s index number is 160, then what is
the Fisher’s index number?
a) 125 b) 120 c) 144 d) None of the above

6. If Fisher’s index = 150 and Paasche’s index = 144, then what is the value of Laspeyre’s
index?
a) 138.25 b) 156.25 c) 104.25 d) 147.77

7. The purpose determines the type of index no. to use


a) Yes b) No c) May be d) May not be

8. Which of the followings is used as a point of reference in comparing various data


describing individual behavior?
a) Sample b) Base period c) Estimation d) None of the above

9. If the prices of all commodities in a place has increased by 20% in comparison to


the base period prices, then the index number of prices for the place is now?
a) 20 b) 100 c) 120 d) 150

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10. If the price of a commodity in a pace have decreased by 30% over the base period
prices, then the index number of that place is:
a) 130 b) 70 c) 90 d) 170

11. Calculate Fisher’s Index from the following data: ∑P0Q0 = 116, ∑P0Q1 = 140, ∑P1Q0 =
97 and ∑P1Q1 = 117.
a) 119.56 b) 83.59 c) 120 d) 110

12. An index number is used in


a) Statistics b) Economic
c) Both a) and b) above d) None of the above

13. For consumer price index, prices are collected from:


a) Government departments b) Fair price shops
c) Retail traders d) Wholesale traders

14. Which of the following statements is TRUE?


a) Splicing means constructing one continuous series from two different indices
on the basis of common base.
b) Paasche’s index number is based on base year quantity
c) Theoretically arithmetic mean is the most appropriate average for constructing
the index number
d) Fisher’s index number satisfies the circular test

15. Purchasing power of money is:


a) Equal to price index number b) Equal to quantity index number
c) Reciprocal of price index number d) None of the above

16. The suitable index number for the comparison of changes in price level of every year
is:
a) Fixed base index number b) Fisher’s ideal index number
c) Chain base index number d) None of the above

17. Consumer price index is generally known as:


a) Cost of living index b) Ideal index
c) Chain based index d) Wholesale price index

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18. Wholesale Price Index is given by:


a) Marshall – Edgeworth Index b) Paasche’s Index
c) Laspeyre’s Index d) None of the above

19. The index number of prices at a place in the year 2018 is 225 with 2014 as the base
price, then there is:
a) Average 100% increase in prices b) Average 225% increase in prices
c) Average 125% increase in prices d) None of the above

20. In Paasche’s Index, weights are based on:


a) Base year Quantities b) Current year Prices
c) Current year Quantities d) None of the above

21. In Laspeyre’s Price Index Number, weights are based on:


a) Current year quantities b) Current year price
c) Base year price d) Base year quantities

22. Cost of living index numbers are also used to find real wages by the process of:
a) Base shifting b) Deflating of index numbers
c) Splicing of index numbers d) None of the above

23. The ratio of price of the single commodity in a given period to its price in another
period is called:
a) Price ratio b) Price relative
c) Period price d) (a) and (b) both

24. Which of the following represents the Circular Test?


a) P01 x P12 x P20 = 1 b) P01 x P12 x P21 = 1
c) P02 x P12 x P10 = 1 d) None of the above

25. Circular Test is satisfied by:


a) Paasche’s Index Number
b) Laspeyre’s Index Number
c) The simple geometric mean of price relatives and the weighted aggregative
with fixed weights
d) None of the above

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26. Bowley’s Index Number is expressed in terms of:


a) (Laspeyre’s + Paasche’s) b) 0.5 (Laspeyre’s + Paasche’s)
c) (Laspeyre’s – Paasche’s) d) 0.5 (Laspeyre’s – Paasche’s)

27. Which of the followings test is an extension of time reversal test?


a) Factor Reversal Test b) Circular Test
c) Both a) and b) above d) None of the above

28. Laspeyer’s method and Paasche’s method do not satisfy


a) Unit Test b) Time Reversal Test
c) Factor Reversal Test d) Both b) & c) above

29. The value index is equal to:


a) The total sum of the values of a given year plus the sum of the values of the
base year.
b) The total sum of the values of a given year multiplied by the sum of the values
of the base year.
c) The total sum of the values of a given year divided by the sum of the values of
the base year.
d) None of the above

30. Compute the consumer price index for 2016 on the basis of 2015 from the following
data:

Commodities Quantities consumed in Price in 2015 Price in 2016


2015
A 6 5.75 6.00
B 6 5.00 8.00
C 1 6.00 9.00
D 6 8.00 10.00
E 4 2.00 1.50
F 1 20.00 15.00

a) 128.77 b) 138.77 c) 118.77 d) 119.21

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31. Suppose Mr. M was earning Rs. 20,500 in the base period, what should be his salary
in the current period if his standard of living is to remain the same? Given ∑W = 25
and ∑IW = 3544.
a) 20960 b) 29060 c) 23060 d) 21060

32. Net monthly salary of Mr. J was Rs. 300,000 in 2000. The consumer price index
number in 2015 is 250 with 2000 as base year. If he has to be rightly compensated,
then the Dearness Allowance to be paid to him in 2015 is:
a) Rs. 400,000 b) Rs. 450,000 c) Rs. 750,000 d) Rs. 300,000

33. In 2014 for working class people wheat was selling at an average price of Rs. 16
per 20 Kg, cloth at Rs. 2 per meter, house rent Rs. 30 per house and other items at
Rs. 10 per unit. By 2015 cost of wheat rose by Rs. 4 per 20 Kg, house rent by Rs. 15
per house and other items doubled in price. The working class cost of living index
for the year 2015 (with 2014 as base) was 160. By how much did cloth rose in price
during the period?
a) 0.99 b) 1.28 c) 1.30 d) 1.73

34. Calculate the Fisher’s Ideal Index from the following data:

Commodity Price 2014 Price 2015 Quantity 2014 Quantity 2015


Rice Rs. 9.30 Rs. 4.50 100,000 Kgs 90,000 Kgs
Pulse Rs. 5.10 Rs. 2.70 5,000 Kgs 3,000 Kgs
Wheat Rs. 6.40 Rs. 3.70 11,000 Kgs 10,000 Kgs

a) 49.13 b) 84.13 c) 48.13 d) 46.12

35. For the following data, calculate the general index:

Group A B C D E F
Group Index 120 132 98 115 108 95
Weight 6 3 4 2 1 4

a) 115.30 b) 111.30 c) 117.92 d) 113.54

36. The prices of commodity in the year 2005 and 2010 were 25 and 30 respectively.
Taking 2010 as the base year, what is the price relative?
a) 83.33 b) 113.25 c) 93.33 d) 87.77

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37. Calculate the Marshall – Edgeworth Index from the following data:

Commodity Price 2014 Price 2015 Quantity 2014 Quantity 2015


A 7 13 17 25
B 6 7 23 25
C 11 13 14 15
D 4 8 10 8

a) 144.19 b) 143.91 c) 140.31 d) 149.00

38. An enquiry into the budgets of middle class families in a village gave the following
information:

Expenses on Food 30% Rent 15% Clothing Fuel 10% Others


20% 25%
Prices in 2007 100 20 70 20 40
Prices in 2015 90 20 60 10 55

Calculate the price index number based on Weighted Arithmetic Mean of Price
Relatives.
a) 111.015 b) 101.015 c) 101.970 d) 98.52

39. Given the following information, which of the statements given is TRUE?

Commodity Price 2014 Price 2015 Quantity 2014 Quantity 2015


A 2 3 74 82
B 5 4 125 140
C 7 6 40 33

a) Marshall Edgeworth index for 2015 is 105.13


b) Fisher’s index for 2015 is 90.15
c) Marshall Edgeworth index number is good approximation to Fisher’s index
number
d) None of the above

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CA FOUNDATION STATISTICS

40. Monthly salary of Ms. G was Rs. 100,000 in the year 2010 and it was increased to
Rs. 200,000 in the year 2019 while the consumer price index is 240 in year 2019
with the base year 2010. What should be her salary in comparison of consumer
price index in the year 2019?
a) Rs. 250,000 b) Rs. 240,000
c) Rs. 280,000 d) Rs. 300,000

41. If with an increase of 10% in prices, the rise in wages is 20%, then the real wage has
increased by:
a) 20% b) Less than 20%
c) More than 20% d) Less than 10%

42. Consumer price index number for the year 1977 was 313 with 1960 as the base year
and was 100 for the year 1960. The average monthly wages in 1977 of the workers
of a factory be Rs. 160, their real wages is:
a) Rs. 51.12 b) Rs. 52.11 c) Rs. 15.21 d) Rs. 25.21

43. If the 1970 index with base 1965 is 200 and 1965 index with base 1960 is 150, what
is the index for 1970 on base of 1960?
a) 300 b) 500 c) 600 d) 700

44. Find by the Arithmetic mean method, Index Numbers from the following data:

Commodity A B C D E
Base Price 30 25 90 15 96
Current Price 36 28 108 21 120

a) 120 b) 121.3 c) 122.3 d) 123.4

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45. Calculate the Cost of Living Index number from the following data:

Items Price Weights


Base Year Current Year
Food 30 47 4
Fuel 8 12 1
Clothing 14 18 3
House Rent 22 15 2
Miscellaneous 25 30 1

a) 130 b) 124 c) 129 d) 135

46. Find x if Cost of Living Index is 150.


Group A B C D E
Index 200 150 140 100 120
Weights 6 4 x 3 4
a) 2 b) 3 c) 5 d) 7

47. Given The following Data:

Items Current Year Base Year


Price (Rs.) Value (Rs.) Value (Rs.) Quantity (kg)
A 20 200 360 12
B 4 36 64 16
C 14 238 575 23

The price index using Bowley’s formula is:


a) 65.95 b) 62.47 c) 85.47 d) 65.47

48. Compute price index for the following data by applying weighted average of price
relative method (Arithmetic Mean Method).

Item Price in 1996 (Rs.) Price in 1997 (Rs.) Quantity in 1996


Wheat 2.00 2.50 40 kg
Sugar 3.00 3.25 20 kg
Milk 1.50 1.75 10 lit

a) 155 b) 117.74 c) 182.5 d) 115

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49. For the following data (base 2002 = 100), construct the chain index for the years
2003 to 2006:
Year 2002 2003 2004 2005 2006
Link Index 100 103 105 112 108
a) 103, 108, 120, 135 b) 103, 108.15, 121.13, 130.82
c) 103, 108.15, 125.5, 131.82 d) None of the above

50. Calculate the index number using Geometric Mean method:

Commodity Base Year Current Year


A 25 55
B 30 45

a) 181.75 b) 181.66 c) 181.25 d) None of the above

ANSWER KEY

Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 d 11 b 21 d 31 b 41 d
2 a 12 c 22 b 32 b 42 a
3 b 13 c 23 b 33 c 43 a
4 a 14 a 24 a 34 a 44 d
5 b 15 c 25 c 35 b 45 c
6 b 16 c 26 b 36 a 46 b
7 a 17 a 27 b 37 a 47 b
8 b 18 c 28 d 38 b 48 b
9 c 19 c 29 c 39 c 49 b
10 b 20 c 30 c 40 b 50 b

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HOMEWORK SOLUTION

1. Index number for the base period is always taken as 100. Option d

2. P01 is the index for time 1 on 0. Option a

3. P10 is the index for time 0 on 1. Option b

4. 2B = L + P.
P = 2B – L = 2(150) – 180 = 300 – 180 = 120. Option a

5. F2 = L x P = 90 x 160 = 32 x 42 x 102
F = 3 x 4 x 10 = 120. Option b

6. F2 = L x P
L = F2 / P = (150)2 / 144 = 22500/144 = 156.25
Option b

7. The purpose always determines the type of index number to be used. Option a

8. Base period is generally used as a point of reference in comparing various data


describing individual behavior. Option b

9. If prices are increased by 20%, the price index number = 100 + 20% of 100 = 120.
Option c

10. If prices have decreased by 30%, the price index = 100 – 30% of 100 = 100 – 30 =
70. Option b

11. F2 = (∑P1Q0 / ∑P0Q0) x (∑P1Q1 / ∑P0Q1) x 100 x 100


F2 = (97 / 116) X (117 / 140) X 100 X 100 = 6988.3
F = 83.59
Option b

12. An index number is used both in Economics and Statistics. Option c

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13. For calculating the CPI, prices are generally collected from the retail traders. Option c

14. Splicing means constructing one continuous series from two or more indices.
Option a

15. Purchasing power of money is the reciprocal of the price index number. Option c

16. Chain based index number is suitable for the comparison of changes in price level
of every year over the previous year. Option c

17. Consumer price index is generally known as the Cost of Living Index. Option a

18. Wholesale Price Index is price index with base period quantity as weights. Thus
Laspeyre’s Index is the best fit. Option c

19. Average increase in prices = 225 – 100 = 125%. Option c

20. In construction of Paasche’s Price Index, current year’s quantities are used as weights.
Option c

21. In construction of Laspeyre’s Price Index, base year’s quantities are used as weights.
Option d

22. The process used to find the real wages using CLI is known as deflating. Option b

23. Price Relative = P1/P0. Option d

24. P01 x P12 x P20 = P0/P1 x P1/P2 x P2/P0 = 1. Option a

25. The simple GM of PR and the weighted aggregative with fixed weights follows the
circular test. It is not followed by either Laspeyre’s or Paasche’s index. Option c

26. Bowley’s index is the AM between Laspeyre’s and Paasche’s index. Option b

27. Circular Test is the extension of the Time Reversal Test. Option b

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28. Both Laspeyre’s and Paasche’s index numbers do not satisfy either Factor Reversal
Test neither Time Reversal Test. But both satisfies the Unit Test. Option d

29. Value Index = ∑P1Q1 / ∑P0Q0. Option c

30. Use Laspeyre’s price Index (Consumer Price Index)

CPI


174
= x 100 = 118.77
146.5

31. CLI = 3544/25 = 141.76


Salary in the current year = 20500 * 141.76/100 = 29060
Option b

32. Current Year salary should be = 300000 * 250/100 = 750000


DA = 750000 – 300000 = 450000
Option b

33. Increase in price of wheat = 4/16 * 100 = 25%


Increase in house rent = 15/30 * 100 = 50%
Increase in price of other items = 10/10 * 100 = 100%
Let increase in price of cloth = x%
Total increase = 25 + 50 + 100 + x = 175 + x
Average increase = 43.75 + x/4 = 60
X = 65%
Price of cloth increases by 2 * .65 = Rs. 1.30 per meter
Option c

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34. Calculation of Fisher’s Index


P0 P1 Q0 Q1 P1Q0 P0Q0 P1Q1 P0Q1
9.30 4.50 100000 90000 450000 930000 405000 837000
5.10 2.70 5000 3000 13500 25500 8100 15300
6.40 3.70 11000 10000 40700 70400 37000 64400
504200 1025900 450100 916700

F2 = (504200 / 1025900) x 100 x (450100 / 916700) x 100


F = 49.13
Option a

35. ∑IW = 120*6 + 132*3 + 98*4 + 115*2 + 108*1 + 95*4 = 720 + 396 + 392 + 230 + 108
+ 380 = 2226
∑W = 6 + 3 + 4 +2 + 1 + 4 = 20
General Index = 2226 / 20 = 111.30
Option b

36. PR = 25/30 * 100 = 83.33 Option a

39. Calculation of Marshall Edgeworth Index Number


P0 P1 Q0 Q1 P1Q0 P0Q0 P1Q1 P0Q1
2 3 74 82 222 148 246 164
5 4 125 140 500 625 560 700
7 6 40 33 240 280 198 231
962 1053 1004 1095

F2 = (962/1053)*100 x (1004/1095)*100 = 8377


F = 91.52
ME = (962 + 1004) / (1053 + 1095) * 100 = (1966/2148)*100 = 91.52
We can say ME index number is good approximation to F index number.
Option c

40. Current Salary should be = 100000 *240/100 = 240000. Option b

41. P0 = 100, W0 = 100, RW0 = 100/100 = 1


P1 = 110, W1 = 120, RW1 = 120/110 = 1.09.09
Increase in real wages = 0.0909/1 * 100 = 9.09%
Option d

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42. RW = 160/313 * 100 = 51.12


Option a

43. P1970/P1960 = (P1970/P1965) x (P1965/P1960) = 200 * 150 / 100 = 300


Option a

44. ∑PR = (36/30*100) + (28/25*100) + (108/90*100) + (21/15*100) + (120/96*100) =


120 + 112 + 120 + 140 + 125 = 617
Price Index = 617 / 5 = 123.4
Option d

45. ∑IW = [(47/30)*4 + (12/8)*1 + (18/14)*3 + (15/22)*2 + (30/25)*1]*100 = (6.27 + 1.50


+ 3.85 + 1.36 + 1.20)*100 = 1418
∑W = 4 + 1 + 3 + 2 + 1 = 11
CLI = 1418 / 11 = 129
Option c

46. ∑IW = 1200 + 600 + 140X + 300 + 480 = 2580 + 140X


∑W = 6 + 4 + X + 3 + 4 = 17 + X
150 = (2580 + 140X) / (17 + X)
2550 + 150X = 2580 + 140X
X=3
Option b

47. Calculation of Bowley’s Index


P1 P1Q1 P0Q0 Q0 Q1 P0 P1Q0 P0Q1
20 200 360 12 10 30 240 300
4 36 64 16 9 4 64 36
14 238 575 23 17 25 322 425
474 999 626 761
L = 626/999 x 100 = 62.66
P = 474/761 x 100 = 62.28
B = (62.66 + 62.28) / 2 = 62.47
Option b

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48. Use Laspeyre’s price Index (Consumer Price Index)

CPI


182.5
= x 100 = 117.74
155


49. Calculation of Chain Index
2002 = 100
2003 = 100 * 103 / 100 = 103
2004 = 103 * 105 / 100 = 108.15
2005 = 108.15 * 112 / 100 = 121.13
2006 = 121.13 * 108 / 100 = 130.82
Option b

50. PR(A) = 55/25 * 100 = 220


PR(B) = 45/30 * 100 = 150
(Price Index)2 = 220 * 150 = 33000
Price Index = 181.66
Option b

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SELF ASSESSMENT TEST 6


25 Marks

1. From the following data calculate the Fisher’s Ideal Index:


Commodity A B C D
Base Price 4 5 7 2
Base Quantity 3 4 2 3
Current Price 6 6 9 1
Current Quantity 2 4 2 5

a) 116.48 b) 118.35
c) 115.43 d) 117.30

2. The index number for the year 2012 taking 2011 as the base year from the data
given below by using simple average of price relative method is:
Commodity A B C D E
Price in 2011 115 108 95 80 90
Price in 2012 125 117 108 95 95

a) 111 b) 112
c) 117 d) 120

3. Index numbers are always expressed in:


a) Ratios OR percentages b) Squares
c) Combinations d) Probability

4. If all the values are of equal importance, the index numbers are called:
a) Weighted index number
b) Un-weighted index numbers
c) Composite index numbers
d) Value index numbers

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5. Index numbers can be used for:


a) Fixed prices b) Floating prices
c) Constant prices d) Price forecasting

6. When the prices of a commodity are to be compared, we compute:


a) Value index b) Volume index
c) Quantity index d) Price index

7. When index number is calculated for several variables, it is called:


a) Whole sale price index b) Volume index
c) Composite index d) Simple index

8. Price relatives are a percentage ratio of current year price and:


a) Current year quantity b) Base year price
c) Base year quantity d) Previous year quantity

9. Which of the following makes an index number time-reversible?


a) Arithmetic Mean b) Harmonic Mean
c) Mode d) Geometric Mean

10. There is no such thing as un-weighted index numbers?


a) True b) False
c) Neither true nor false d) None of the above

11. Index numbers are often constructed from the:


a) Class intervals b) Frequencies
c) Samples d) None of the above

12. Consumer Price Index falls in the category of:


a) A simple index b) Weighted aggregate index
c) A inflationary index d) None of the above

13. Which of the following index number covers all those index numbers which measures
the changes in total money worth during some period compared with other period?
a) Quantity Index Numbers b) Value Index Numbers
c) Price Index Numbers d) Volume Index Numbers

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14. The base period should be ______ period.


a) Abnormal b) Normal
c) Un-natural d) None of the above

15. An index increases from 105 to 110. The change in the index is:
a) 4.75 points b) 5 points
c) 110 points d) None of the above

16. It has been decided to change the base of an index from 2008 to 2015. If the index
in 2015 is 148, what would the index in 2008 become after the change?
a) 100 b) 32.4
c) 67.6 d) 148

17. The turnover by a company in 2012 was Rs. 54.5 M and in 2014 it was Rs. 75 M.
If the CPI has increased from 123 in 2012 to 128 in 2014, the real change in the
turnover has been:
a) Rs. 16 M b) Rs. 17.6 M
c) Rs. 20.5 M d) Rs. 18.1 M

18. If the price index for bananas was 100 in 2015 and that for apples was 110, then
the price of a “Rupee” of bananas was:
a) Less than for apples b) More than for apples
c) Impossible to compare with apples d) None of the above

19. From the following data calculate the Fisher’s Quantity Index:

Commodities Q0 P0 P1 Q1
A 2 2 18 6
B 5 5 2 2
C 7 7 24 4


a) 85.24 b) 37.87
c) 78.93 d) 24.85

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20. The total value of retained imports into a country X in 1990 was 71.5 M units per
month. The corresponding total for 1997 was 87.6 M units per month. The index of
volume of retained imports in 1997 compared with 1990 was 62. The price index for
retained inputs for 1997 over 1990 as base is:
a) 196.71 b) 197.61
c) 191.76 d) 197.11

21. The price index number using simple GM of the n relatives is given by:
a) Log Ion = 1 – (1/n)∑Log(Pn/P0)
b) Log Ion = (1/n)∑Log(Pn/P0)
c) Log Ion = (1/2n)∑Log(Pn/P0)
d) Log Ion = (1/2n)∑Log(Pn/P0)

22. From the following data calculate the General Index:


Group A B C D E F
Group Index 120 132 98 115 108 95
Weight 6 3 4 2 1 4
a) 117.25 b) 114.75
c) 113.45 d) 111.30

23. From the following data calculate the Paasche’s Price Index:
Commodity A B C D
Price 2012 3 5 4 1
Quantity 2012 18 6 20 14
Price 2013 4 5 6 3
Quantity 2013 15 9 26 15
a) 144.25 b) 148.25
c) 146.41 d) None of the above

24. From the following data calculate the Laspeyre’s Index:


Commodity A B C D
Base Price 4 5 7 2
Base Value 12 20 14 6
Current Price 6 6 9 1
Current Value 12 24 18 5
a) 121.48 b) 128.35 c) 125.43 d) 121.15

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ANSWER KEY

Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 d 6 d 11 c 16 c 21 b
2 a 7 c 12 b 17 b 22 d
3 d 8 b 13 b 18 c 23 c
4 b 9 d 14 b 19 c 24 d
5 d 10 b 15 b 20 b

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EXPLANATORY
ANSWERS

1. Calculation of Fisher’s Ideal Index:

P0 Q0 P1 Q1 P1Q0 P0Q0 P1Q1 P0Q1


4 3 6 2 18 12 12 8
5 4 6 4 24 20 24 20
7 2 9 2 18 14 18 14
2 3 1 5 3 6 5 10
63 52 59 52

F2 = 63/52 * 59/52 * 100 * 100


F = 117.30
Option D

2. Simple average of Price Relative Index:

P(2011) P(2012) PR = P(2012)/P(2011) x 100


115 125 125/115 * 100 = 108.69
108 117 117/108 * 100 = 108.33
95 108 108/95 * 100 = 113.68
80 95 95/80 * 100 = 118.75
90 95 95/90 * 100 = 105.55
555

Index Number = 555/5 = 111


Option A

3. Index numbers are always expressed as ratio or percentages. Option A

4. If all values are of equal importance, then all weights can be reduced to 1, and
hence the index numbers are called Un-weighted index numbers. Option B

5. Index numbers are majorly used for price forecasting. Option D

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6. When the prices of a commodity are to be compared, we use Price Index. Option D

7. When index number is calculated for several variables, it is called composite


index. Option C

8. PR = Current Year Price/Base Year Price. Option B

9. Geometric Mean makes an index number time reversible. Option D

10. False. When weights are of equal importance, it is known as un-weighted index
numbers. Option B

11. Index numbers are generally (often) constructed from the samples. Option C

12. Consumer price index is an aggregate index. Option B

13. Total money means price x quantity. Value index numbers measures the changes
in total money worth during some period compared with other period. Option B

14. The base period under study should be a normal period. Option B

15. When index increases from 105 to 110, there is change of (110 – 105) = 5 points.
Option B

16. New index of 2008 = 100/148 * 100 = 67.6. Option C

17. Real turnover in 2014 = 75/128 * 123 = 72.1


Real change = 72.1 – 54.5 = 17.6
Option B

18. Price index of bananas is impossible to compare with apples. Option C

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19. Calculation of Fishers’ Quantity Index:

P0 Q0 P1 Q1 Q1P0 Q0P0 Q1P1 Q0P1


2 2 18 6 12 4 108 36
5 5 2 2 10 25 4 10
7 7 24 4 28 49 96 168
50 78 208 214

(Fisher’s Quantity Index)2 = 50/78 * 208/214 * 100*100


F = 78.93
Option C

20. P1/P0 = V1/V0 * Q0/Q1 = 87.6/71.5 * 100/62 * 100 = 197.61


Option B

21. Simple GM of PR = (PR1*PR2*……*PRn)1/n


Log (I) = 1/n (LogPR1 + LogPR2 + …. + LogPRn)
Log(Index Number) = 1/n ∑Log(Pn/P0)
Option B

22. ∑IW = 720 + 396 + 392 + 230 + 108 + 380 = 2226


∑W = 6 + 3 + 4 + 2 + 1 + 4 = 20
General Index = 2226/20 = 111.3
Option D

23. Calculation of Paasche’s Price Index:


P0 Q0 P1 Q1 P1Q1 P0Q1
3 18 4 15 60 45
5 6 5 9 45 45
4 20 6 26 156 104
1 14 3 15 45 15
306 209

Paasche’s Price Index = 306/209 * 100 = 146.41


Option C

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24. Calculation of Laspeyre’s Price Index:


P0 P0Q0 P1 P1Q1 Q0=P0Q0/P0 P1Q0
4 12 6 12 3 18
5 20 6 24 4 24
7 14 9 18 2 18
2 6 1 5 3 3
52 63

L = 63/52 * 100 = 121.15


Option D

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SELF ASSESSMENT TEST 7


25 Marks

1. From the following data calculate the Fisher’s Ideal Index:


Commodity A B C D
Base Quantity 3 4 2 3
Base Value 12 20 14 6
Current Quantity 2 4 2 5
Current Value 12 24 18 5

a) 117.30 b) 115.43
c) 116.48 d) 118.35

2. The cost of living index is always:


a) Price Index b) Quantity Index
c) Un-weighted Index d) Weighted Index

3. Index numbers do not have universal applications.


a) True b) False
c) Partly False d) None of the above

4. __________ study the changes in the volume of goods.
a) Value Index b) Price Index
c) Quantity Index d) Volume Index

5. _______ measure the general changes in the price level from one period to another.
a) Value Index Numbers b) Quantity Index Numbers
c) Volume Index Numbers d) Price Index Numbers

6. During the certain period the CLI goes up from 110 to 200 and the Salary of Ms. G
is also raised from 330 to 500, then in the real terms:
a) Loss by Rs. 90 b) Loss by Rs. 55
c) Loss by Rs. 75 d) Loss by Rs. 100

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7. From the following data calculate the Cost of Living Index:


Group A B C D E
Weight 50 2 3 16 29
Index Number 241 221 204 256 179

a) 224.50 b) 223.91
c) 225.32 d) None of the above

8. From the following data calculate the Marshall Edgeworth Index number:
Commodity A B C D
Base Price 7 6 11 4
Base Quantity 17 23 14 10
Current Price 13 7 13 6
Current Quantity 25 25 15 8

a) 148.25 b) 147.25
c) 140.49 d) None of the above

9. The index number in whole sale prices is 152 for July 2009 compared to July 2008.
During the year there is net increase in prices of whole sale commodities to the
extent of:
a) 45% b) 25%
c) 152% d) 52%

10. Which of the following represents the Circular Test?


a) P01 x P12 x P21 = 1 b) P01 x P12 x P20 = 1
c) P02 x P11 x P10 = 1 d) None of the above

11. Bowley’s Index Number is expressed in terms of:


a) (Laspeyre’s + Paasche’s) b) (Laspeyre’s – Paasche’s)
c) ½ (Laspeyre’s + Paasche’s) d) ½ (Laspeyre’s – Paasche’s)

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12. The value index is equal to:


a) The total sum of the values of a given year divided by the sum of the values of
the base year.
b) The total sum of the values of a given year plus the sum of the values of the
base year.
c) The total sum of the values of a given year multiplied by the sum of the values
of the base year.
d) None of the above

13. How many methods are used for the construction of index numbers?
a) 5 b) 2
c) 4 d) 3

14. In chain base method, the base period is:


a) Zero b) Constant
c) Fixed d) Not fixed

15. Circular Tests is one of the tests of:


a) Hypothesis Testing b) Index Numbers
c) Both a) and b) above d) None of the above

16. The ratio of price of single commodity in a given period to its price in another period
is called the:
a) Relative price b) Base price
c) Price ratio d) (a) and (c) both

17. Which of the following is a statistical measure used to compare the average level
of magnitude of a group of distinct but related items in two or more situations?
a) Relative Numbers b) Index Numbers
c) Time Series Numbers d) Absolute Numbers

18. The CPI in July 2012 was 124.4 and by July 2014 it was 128.2. This represents a rise
in the price of goods by:
a) 3.38% b) 3.05%
c) 2.96% d) 3.80%

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19. The CPI and RPI for July 2010 are 112.4 and 217.9 respectively. In July 2011 these
two indices have become 116.9 and 229.0. The difference in the rate of inflation
given by these two indices are:
a) 4.00%
b) 5.10%
c) 1.10%
d) Can’t compare as they are different indices

20. For constructing consumer price index, which of the following methods is used?
a) Marshall – Edgeworth Method b) Laspeyre’s Method
c) Bowley’s Method d) Paasche’s Method

21. Which of the following statements is not FALSE?


a) Splicing means constructing one continuous series from two different indices
on the basis of common base.
b) Paasche’s index number is based on base year quantity
c) Fisher’s index number satisfies the circular test
d) Theoretically arithmetic mean is the most appropriate average for constructing
the index number

22. The index number of prices at a place in the year 2018 is 325 with 2004 as the base
price, then there is:
a) Average 100% increase in prices b) Average 225% increase in prices
c) Average 325% increase in prices d) None of the above

23. 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 the above

24. Index number is equal to:


a) Sum of price relatives b) Average of the price relatives
c) Product of the price relatives d) None of the above

25. The ________ Mean of group indices gives the General Index.
a) Geometric b) Arithmetic
c) Harmonic d) None of the above

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ANSWER KEY

Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 a 6 b 11 c 16 d 21 a
2 d 7 d 12 a 17 b 22 b
3 b 8 c 13 b 18 b 23 a
4 c 9 d 14 d 19 c 24 b
5 d 10 b 15 b 20 b 25 b

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EXPLANATORY
ANSWERS

1. Calculation of Fisher’s Ideal Index:

Q0 P0Q0 Q1 P1Q1 P0=P0Q0/Q0 P1=P1Q1/Q1 P1Q0 P0Q1


3 12 2 12 4 6 18 8
4 20 4 24 5 6 24 20

2 14 2 18 7 9 18 14
3 6 5 5 2 1 3 10
52 59 63 52

F2 = (63/52 * 100) x (59/52 * 100) = 13746.30; F = 117.30. Option A

2. The cost of living index is always a weighted index. Option D

3. Index numbers do have universal applications. Option B

4. Quantity index study the changes in volume of goods. Option C

5. Price index numbers measure the general changes in the price level from one period
to another. Option D

6. Nominal salary should become = 330/110 * 200 = 600


∴ loss = 600-500= 100 Rs
Option D

7. ∑IW = 12050 + 42 + 612 + 4096 + 5191 = 21991


∑W = 50 + 2 + 3 + 16 + 29 = 100
CLI = 21991 / 100 = 219.91. Option D

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8. Calculation of Marshall – Edgeworth’s Index Number:

P0 Q0 P1 Q1 P1Q0 P0Q0 P1Q1 P0Q1


7 17 13 25 221 119 325 175

6 23 7 25 161 138 175 150


11 14 13 15 182 154 195 165
4 10 6 8 60 40 48 32
624 451 743 522

ME Index Number = (624 + 743)/(451 + 522) * 100 = 1367/973 * 100 = 140.49.


Option C

9. 152 – 100 = 52%. Option D

10. P01 * P12 * P20 = P0/P1 * P1/P2 * P2/P0 = 1. Option B

11. Bowley’s Index is AM between Laspeyre’s and Paasche’s Index. Option C

12. The value index is the total sum of all values of a given year divided by the sum of
the values of the base year. Option A

13. Method of aggregates or relative method is used for the construction of index
numbers. Option B

14. In chain base method, the base period keep on changing. It is not fixed. Option D

15. Circular test is one of the tests of Index Numbers. Option B

16. Price Ratio = and price relative. Option D

17. Index number is a statistical measure used to compare the average level of
magnitude of a group of distinct but related items in two or more situations.
Option B

18. (128.2 – 124.4) = 3.8. Rise in price by 3.8/124.4 * 100 = 3.05% Option B

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19. For CPI: (116.9 – 112.4) = 4.5/112.4 * 100 = 4%


For RPI: (229 – 217.9) = 11.1/217.9 * 100 = 5.1%
Difference in the rate of inflation = 5.1% - 4% = 1.1%
Option C

20. For constructing consumer price index, Laspeyre’s method is used. Option B

21. Option A

22. (325 – 100) = 225. There is average 225% increase in prices. Option B

23. An index number is called a simple index when it is computed from single
variable. Option A

24. Index number is average of price relatives. Option B

25. The arithmetic mean of group indices gives the general index. Option B

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PROBABILITY AND RANDOM VARIABLE

Probability

Subjective Objective

It is influenced by personal belief, bias, attitude, etc and this is used in decision
making management.

Definitions

a) Experiment or Random Experiment : When an operation or series of operations are


conducted under identical conditions it is called as experiment.

b) Sample Space : A set of all possible outcomes of a random experiment is called a


sample space (S or U). Sample space may be finite or infinite.

c) Event: The outcome of an experiment is called an event.

d) Elementary and Compound (or Composite) Events: An event is said to be elementary,


if it cannot be de-composed into simpler events. A composite event is an
aggregate of several elementary events.

e) Mutually Exclusive Events : Events are said to be mutually exclusive when the
occurrence of any one event excludes the occurrence of other or otherwise e.g. if a
coin is tossed occurrence of head and tail are mutually exclusive events because of
head will automatically exclude the occurrence of tail or vice versa.

f) Equally likely events: Events are said to be equality likely when they are equi-
probable i.e. the event should occur with same chance of occurrence (None can be
preferred over the other).

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g) Exhaustive events: The events are said to be exhaustive when they include all
possible outcomes. Events will necessarily occur.

h) Independent Events: Events are said to be independent of each other if happening


or non happening of any one of them is not affected by and does not affect the
happening of any one of others.
APPROACHES TO PROBABILITY
Classical or Mathematical or Empirical or Posteriori or Axiomatic
a Priori Statistical

1. Classical Definition of Probability


If a random experiment has “n” possible outcomes, which are mutually exclusive,
exhaustive and equally likely and “m” of these are favourable to any event A, then
the probability of the event A is defined as the ratio m/n, i.e.,



Note1:

a) Probability as defined above will always lie between 0 and 1, both inclusive i.e.,
0 ≤ P(A) ≤ 1 and P(A) ≥ 0.

b) If P(A) = 0, it means that event is impossible.

c) P(A) = 1 signifies that event is certain or sure event.

Note2:

Complementary Probability
Let P(A) be the Probability of occurrence of event A.
Then = Probability of non-occurrence of event A.

Note3:
a) , which implies that A and Ac are collectively exhaustive.

b) , which implies that A and Ac are mutually exclusive.

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Limitations Of Classical Probability

a. It fails if the no. of outcomes of an experiment. is very large n infinite ( ).


b. It fails if the outcomes are not equally likely.
c. The definition holds if the possible events are known well in advance.

2. Empirical or posteriori or Statistical definition


If a random exp. is repeated large no. of times say n under identical conditions & let
event A occurs m times then
P(A) =

3. Axiomatic definition
It is totally dependent on set theory
(i) P(A) ≥ 0 for all A S
(ii) P(S) = 1
(iii) If A & B are mutually exclusive events P(A B) = 0
P(A B) = P(A) + P(B).

Total Number of Outcomes


To find the total number of outcomes, when an experiment is conducted “n” times
in succession or with “n” objects only once.
Total outcomes = [No of outcomes in one experiment]n
Where “n” = either number of objects or number of times the experiment gets
repeated.

Examples:
a) 2 coins are tossed. Total outcomes = 22 = 4
b) A coin is tossed five times. Total outcomes = 25 = 32
c) 2 dice are rolled together. Total outcomes = 62 = 36

Concepts of ‘At least’, ‘At most’ and ‘At least one’

• At least
Let x = 0, 1, 2, 3, ... ..., n
Then, x is at least k, implies x ≥ k, which implies that x = k, (k+1), (k+2), ... ... n

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• At most
x is at most k implies x ≤ k, which means x = 0, 1, 2, ..., k

• At least One
x is at least one implies that x ≥ 1, i.e., x = 1, 2, 3, ... .., n
Hence, P(at least 1) = 1 – P(none) = 1 – P(0)

Facts about Card


• A well shuffled deck of 52 cards are bi-colored -26 red and 26 black
• There are 4 suits or categories
Clubs -13 Spades -13
Hearts -13 Diamonds-13

• In each category , there is 1 king , 1 Queen


1Jack or knave and 1 Ace( Ace implies 1)
Therefore,
King =4 King, Queen and Jack together are called Face cards.
Queen =4 King Queen Jack and Ace are together called Honour cards.
Jack =4 Total face Cards=4+4+4=12
Ace =4 Honour Cards =4+4+4+4(K,Q,J,A)

Rolling of Dice
 If a die is rolled outcomes are 1, 2, 3, 4, 5, 6
 It two unbiased dice are rolled, outcomes = 62 = 36.
Sample Space
1,1 2,1 3,1 4,1 5,1 6,1
1,2 2,2 3,2 4,2 5,2 6,2
1,3 2,3 3,3, 4,3 5,3 6,3
1,4 2,4 3,4 4,4 5,4 6,4
1,5 2,5 3,5 4,5 5,5 6,5
1,6 2,6 3,6 4,6 5,6 6,6

Observations:
A. Sum of faces on two Dice and the no. of ways of getting sum
Sum 2 3 4 5 6 7 8 9 10 11 12
No. of ways 1 2 3 4 5 6 5 4 3 2 1

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B. Distribution of sample space


Face F=S F>S F<S F Face on the First die
Cases 6 15 15 S Face on the Second die

No. of Children in a family


It treated same as in case of tossing of a coin.
For instance, if there are 3 children in a family, then outcomes = 23 = 8
(BBB) (BBG) (BGB) (BGG) (GBB) (GBG) (GGB) (GGG)

• Leap Year
A leap year contains 52 weeks and 2 extra days. These two extra days can be
either of the following out-comes:
(M, T) (T, W) (W, Th) (Th, F) (F, Sat) (Sat, Sun) (Sun, M)

• Simple drawing of Balls from Bag – Using Combination Techniques


A Bag contains m Red Balls and n Black Balls. Then if r balls are drawn, then it
can be done in ways.

Similarly use combination techniques to choose the required number of objects


from the total objects given.

THEORM OF TOTAL PROBABILITY (Rule of Addition)


Statement: if A and B are two events, not mutually exclusive, then the probability
of occurrence of at least any of the two events, A and B will be given by;
P (A B) or P (A+B) = P (A) + P (B) - P (A B) or P (AB)

Note 1: Union ( ) implies “OR” Addition (+)


Note 2: Intersection ( ) implies “AND” Multiplication (×)

Partitioning of events

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1. A and B (A B) or AB
2. A and not B A but not B A BC A - (A B)
3. B but not A B and not A B AC B - (A B)
4. Neither A nor B A “not” and B “not” AC BC
5. AC = (3) + (4)
6. BC = (1) + (4)
7. AC BC = (1) + (3)+ (4) = [2]C = (A B)C
8. AC BC = [4] =[1 + 2+ 3]C = (A B)C

Proof of P (A B):

Hence proved
Note 1:
For 3 events, A, B and C, not mutually exclusive, +

Note 2:
When A and B are mutually exclusive, the two sets are disjoint and accordingly
and

Note 3:
When 3 events A, B and C are mutually exclusive then
=0 and accordingly


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Note 4:
When 3 events A, B and C are mutually exclusive and collectively exhaustive then,

Note 5:
Working Rules:
i. P(A BC) = P(A) – P(A B)
ii. P(AC B) = P(B) – P(A B)
iii. P(AC U BC) = P(A B)C = 1 – P(A B)
iv. P(AC BC) = P(A U B)C = 1 – P (A U B)
v. P(AC U B) = P(AC) + P(B) – P(AC B)
vi. P(A U BC) = P(A) + P(BC) – P (A BC)

CONCEPT OF ‘ODDS IN FAVOR’ AND ‘ODDS AGAINST’

• Odds in favor of an event is defined as ‘the ratio of the favorable to the


unfavorable cases and is denoted by u : v
Where,
U = favorable cases and
V = unfavorable cases

• Odds against an event A is defined as ‘the ratio of the unfavorable to the


favorable cases and is given by v : u
Where,
U = favorable cases
V = Unfavorable cases

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THEOREM OF COMPOUND PROBABILITY (RULE OF MULTIPLICATION)

Statement:
If A and B are two events, not mutually independent, then the probability of joint
or simultaneous occurrence of the two events A and B would be given by the
product of the probability of event A and the conditional probability of event B
assuming that, A has already occurred,

Symbolically, the fact is expressed as,

Similarly product of the probability B and the conditional probability of event A


assuming that, B has already occurred, is given by

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Note 2:
When the events A and B are independent, in such a case

Note 3:
a. When the events A and B are independent, then,

Hence, proved

b. When the events A and B are independent, then,

Hence, proved

Note 4:
For three events, A, B and C which are not independent,

Note 5:
When 3 events, A and B and C are independent,

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Note 6:
Two events A and B are,
i. Mutually exclusive, if
ii. Independent, if
iii. Equally likely, if
iv. Exhaustive, if
v. Mutually exclusive and exhaustive e, if

Note 7:
Two events with non-zero probability cannot be simultaneously mutually
exclusive and independent.

Note 8:
If two events A and B are independent, then
i. AC and BC are independent
ii. A and BC are independent
iii. AC and B are independent

Note 9:
If are n events, then the number of conditions to be satisfied for
proving their mutual independence are

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CLASSWORK SECTION

Tossing of Coins

Three coins are tossed simultaneously. Find the probability of getting:

1. All heads.
a) 1/8 b) 6/8 c) 7/8 d) 4/8

2. All tails.
a) 1/8 b) 6/8 c) 7/8 d) 4/8

3. No Head.
a) 1/8 b) 6/8 c) 7/8 d) 4/8

4. No tail.
a) 1/8 b) 6/8 c) 7/8 d) 4/8

5. At least one head.


a) 1/8 b) 6/8 c) 7/8 d) 4/8

6. At least one tail.


a) 1/8 b) 6/8 c) 7/8 d) 4/8

7. All not heads.


a) 1/8 b) 6/8 c) 7/8 d) 4/8

8. At least two heads.


a) 1/8 b) 6/8 c) 7/8 d) 4/8

9. At most two tails.


a) 1/8 b) 6/8 c) 7/8 d) 4/8

10. At most one head.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

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11. Two or more tails.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

12. More than two tails.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

13. Less than one head.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

14. Heads and tails alternately.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

15. Heads are the two extremes.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

16. Heads will come in the 1st row.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

17. Heads will exceed the number of tails in a particular throw.


a) 2/8 b) 6/8 c) 1/8 d) 4/8

Pack of Cards – Withdrawn of a card

A card is drawn from a well-shuffled pack of 52 cards. Find the probability that:-

18. It is red.
a) ¼ b) ½ c) 1/5 d) 33/56

19. It is an Ace.
a) 2/13 b) 3/13 c) 1/13 d) 4/13

20. It is a spade.
a) 2/8 b) 6/8 c) 1/8 d) 4/8

21. It is either a King or an Ace.


a) 2/13 b) 3/13 c) 1/13 d) 4/13

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22. It is either a King or a Knave.


a) 2/13 b) 11/13 c) 10/13 d) 4/13

23. It is neither a King nor a Knave.


a) 2/13 b) 11/13 c) 10/13 d) 4/13

24. It is neither a heart nor a diamond.


a) 0.45 b) 0.50 c) 0.75 d) 0.80

25. It is neither an Ace, nor a King, nor a Queen, nor a Knave.


a) 12/13 b) 11/13 c) 10/13 d) 9/13

26. A spade or an Ace not of spade.


a) 2/13 b) 4/13 c) 1/13 d) 7/13

Rolling of Dice

Two dices are rolled. Find the probability that,

27. Sum of the faces is 7.


a) ¼ b) 1/8 c) 1/6 d) None of these

28. Sum is 11.


a) 1/14 b) 5/36 c) 1/18 d) None of these

29. It is either 7 or 11.


a) 3/9 b) 5/9 c) 2/9 d) None of these

30. It is neither 7 nor 11.


a) 5/9 b) 3/9 c) 7/9 d) None of these

31. Sum is an odd number more than 3.


a) 2/9 b) 4/9 c) 6/9 d) None of these

32. Sum is a multiple of 3.


a) 1/9 b) 2/9 c) 3/9 d) None of these

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33. Sum is a multiple of 4.


a) 1/6 b) 1/3 c) ¼ d) 1/36

34. Sum is a multiple of 3 and 4.


a) 2/36 b) 3/36 c) 4/36 d) 1/36

35. Sum is a multiple of 3 or 4.


a) 5/9 b) 3/9 c) 7/9 d) None of these

36. Sum is at least 8.


a) 4/12 b) 5/12 c) 6/12 d) None of these

37. Sum is at most 7.


a) 4/12 b) 5/12 c) 7/12 d) None of these

38. The product of the faces is 12.


a) 3/9 b) 2/9 c) 1/9 d) None of these

39. Sum of the faces is more than 12.


a) 4/12 b) 2/12 c) 1/12 d) None of these

Children in a Family
In a family of three children there is at least one girl. Find the probability that;

40. All are girls.


a) 1/8 b) 2/7 c) 2/8 d) 1/7

41. There are exactly 2 boys.


a) 1/8 b) 3/7 c) 2/8 d) 1/7

42. There are at least two girls.


a) 4/7 b) 2/7 c) 2/8 d) 1/7

43. There is exactly 1 boy.


a) 1/8 b) 2/7 c) 3/7 d) 1/7

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44. There is at most 1 boy.


a) 1/8 b) 4/7 c) 2/8 d) 1/7

45. All are not girls.


a) 6/7 b) 3/7 c) 6/8 d) 1/7

Leap Year
Find the probability that a leap year selected at random will contain;

46. 53 Sundays.
a) 3/7 b) 1/7 c) 4/7 d) 2/7

47. 53 Thursdays or 53 Fridays.


a) 1/7 b) 3/7 c) 2/7 d) 4/7

48. 53 Thursdays and 53 Fridays.


a) 1/7 b) 3/7 c) 2/7 d) 4/7

Drawing of Balls from Bag


From a bag containing 7 white and 5 red balls, 4 balls are drawn at random. What is the
chance that;

49. All are white.


a) 35/490 b) 35/495 c) 43/495 d) None of these

50. All are red.


a) 5/495 b) 1/495 c) 3/495 d) None of these

51. Two white and two red.


a) 225/495 b) 210/495 c) 259/495 d) 265/495

52. Three white and one red.


a) 165/495 b) 185/495 c) 175/495 d) 195/495

53. Three red and one white.


a) 75/495 b) 81/495 c) 73/495 d) 70/495

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Addition Theorem
A number is selected at random from a set of first 120 natural numbers. What is the
probability that it is divisible by:

54. 5 or 6
a) 1/3 b) 1/4 c) 2/12 d) None of the above

55. 7 or 9
a) 31/120 b) 30/120 c) 29/120 d) None of the above

56. A constructive company is bidding for two contracts, A and B. The probability that
the company will get contract A is 3/5, the probability that the company will get
contract B is 1/3 and the probability that the company will get both the contracts
is 1/8. What is the probability that the company will get at least one contact.
a) 79/120 b) 97/120 c) 89/120 d) None of these

57. The probability that the contractor will get one electric contract is 3/5, and the
probability that the company will not get a plumbing contract is 7/10. If the
probability of getting at least one contract is 4/7, what is the probability that he
will get both the contracts.
a) 32/70 b) 65/70 c) 23/70 d) None of these

If P(A) = 1/4 , P(B) = 2/5, P(A B) = 1/2 . Find:

58. P(A B)
a) 3/20 b) 1/10 c) ¼ d) ½

59. P(A Bc)


a) 3/20 b) 1/10 c) ¼ d) ½

60. P(Ac B)
a) 3/20 b) 1/10 c) ¼ d) ½

61. P(Ac Bc)


a) 3/20 b) 1/10 c) ¼ d) ½

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62. P(Ac B)
a) 9/10 b) 7/10 c) 3/10 d) None of the above

63. P(A Bc)


a) 2/5 b) 3/5 c) 1/5 d) None of the above

Multiplication Theorem

64. If P(A) = 2/3, P(B) = 3/4, P(A / B) = 2/3, then what is P(B / A)?
a) 1/3 b) 1/3 c) 3/4 d) None of the above

If P(A) = 1/4 , P(B) = 2/5, P(A B) = 1/2 . Find:

65. P(A/B)
a) 2/8 b) 5/8 c) 3/8 d) None of the above

66. P(B/A)
a) 2/5 b) 3/5 c) 1/5 d) None of the above

67. P(Ac/B)
a) 5/8 b) 8/5 c) 3/5 d) None of the above

68. P(Bc/A)
a) 1/5 b) 2/5 c) 3/5 d) None of the above

69. P(B/Ac)
a) 2/3 b) 1/3 c) 1 d) None of the above

70. P(Ac/Bc)
a) 4/10 b) 5/10 c) 6/10 d) None of the above

71. P(Bc/Ac)
a) 1/3 b) 2/3 c) 4/5 d) None of the above

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Independent Events
72. For two independent events A and B, what is P(A + B), given P(A) = 3/5 and P(B) =
2/3?
a) 11/15 b) 13/15 c) 7/15 d) None of the above

73. If for two independent events A and B, P(A U B) = 2/3 and P(A) = 2/5, what is P(B)?
a) 4/15 b) 4/9 c) 5/9 d) 7/15

74. A speaks truth in 60% and B in 75% of the cases. In what percentage of cases are
they likely to contradict each other in stating the same fact
a) 0.45 b) 0.54 c) 0.55 d) 0.65

A problem in Statistics is given to three students A, B and C whose respective chances


of solving are 1/3, 1/4, 1/5. Find the probability that:

75. It is solved by all of them.


a) 1/60 b) 2/5 c) 3/5 d) 13/30

76. It is solved by none of them.


a) 1/60 b) 2/5 c) 3/5 d) 13/30

78. It is solved.
a) 1/60 b) 2/5 c) 3/5 d) 13/30

79. It is solved by exactly 1 of them.


a) 1/60 b) 2/5 c) 3/5 d) 13/30

80. It is solved by exactly 2 of them.


a) 3/20 b) 2/5 c) 3/5 d) 13/30

81. It is solved by at least 2 of them.


a) 2/6 b) 1/6 c) 5/6 d) None of these

82. It is solved by almost 1 of them.


a) 5/6 b) 5/7 c) 5/9 d) 5/11

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Odds in Favour / Odds Against

83. The odds against a certain event are 5:2 and odds in favour of another event,
independent of the former, are 6:5. Find the chance that at least one of the events
will happen.
a) 25/77 b) 35/77 c) 52/77 d) 65/87

84. The odds in favour of an event are 4:3. The odds against another independent event
are 2:3. What is the probability that at least one of the events will occur?
a) 35/36 b) 28/35 c) 29/36 d) 29/35

85. The odds against 2 events are 2:7 and 7:5 respectively. If the events are independent,
find the probability that at least one of them will occur?
a) 45 / 74 b) 35 / 54 c) 45 / 54 d) 47 / 54

86. The odds that a book will be favorably reviewed by three independent critics are
5 to 2, 4 to 3, and 3 to 4 respectively. What is the probability that majority of the
critics reviewed the book favorably?
a) 225 / 343 b) 209 / 343 c) 391 / 400 d) 420 / 840

Bags and Balls – Important Cases

Case: 1 – Two bags are given, a ball is drawn from each bag

One bag contains 4 red and 2 black balls, another bag contains 3 red and 5 black balls.
If one ball is drawn from each bag, determine the probability that;

87. Both are red


a) ¼ b) ½ c) ¾ d) None of these

88. Both are black.


a) 5/24 b) 7/24 c) 9/24 d) None of these

89. One is red and one is black.


a) 11/24 b) 13/24 c) 29/48 d) 92/192

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Case: 2 – Two bags are given, a bag is chosen at random, then ball(s) is/are drawn

A bag contains 5 red and 3 black balls and another bag contains 4 red and 5 black balls.
A bag is selected at random and a ball is selected. Find the chance that:

90. It is red.
a) 77 / 177 b) 87 / 144 c) 97 / 854 d) 77 / 144

91. It is black.
a) 67 / 144 b) 77 / 144 c) 97 / 144 d) 87 / 145

92. If 2 balls are drawn from the selected bag, find the chance that one red and one
black is drawn.
a) 275 / 957 b) 597 / 5149 c) 275 / 504 d) None of the above

Case: 3 – Two bags are given, 1 ball is chosen from Bag 1 and transferred to Bag 2. Now
a ball is drawn from Bag 2

There are two bags. The first contains 2 red and 1 white ball, whereas the 2nd bag
contains 1 red and 3 white balls. One ball is taken out at random from the 1st bag and
put into second bag. Then a ball is chosen at random from the second bag. What is the
probability that;

93. The last ball is red.


a) ½ b) 1/3 c) ¼ d) 1/5

94. The last ball is white.


a) 1 / 3 b) 2 / 3 c) 3 / 5 d) 5 / 7

Miscellaneous Cases

95. What is the probability that 4 children selected at random would have different
birthdays?
a) 364 x 363 x 362 b) 6 x5 x4 c) 1/365 d) (1/7)3
(365)3 73

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96. A bag contains 8 red and 5 white balls. Two successive draws of 3 balls are made
without replacement. The probability that the first draw will produce 3 white balls
and the second 3 red balls is
(a) 5/223 (b) 6/257
(c) 7/429 (d) 3/548

97. There are three persons aged 60, 65 and 70 years old. The survival probabilities for
these three persons for another 5 years are 0.7, 0.4 and 0.2 respectively. What is the
probability that at least two of them would survive another five years?
(a) 0.425 (b) 0.456
(c) 0.392 (d) 0.388

98. For a group of students, 30 %, 40% and 50% failed in Physics , Chemistry and at
least one of the two subjects respectively. If an examinee is selected at random,
what is the probability that he passed in Physics if it is known that he failed in
Chemistry?
(a) 1/2 (b) 1/3 (c) 1/4 (d) 1/6

99. A packet of 10 electronic components is known to include 2 defectives. If a sample


of 4 components is selected at random from the packet, what is the probability that
the sample does not contain more than 1 defective?
(a) 1/3 (b) 2/3 (c) 13/15 (d) 3/15

100. X and Y stand in a line with 6 other people. What is the probability that there are 3
persons between them?
(a) 1/5 (b) 1/6 (c) 1/7 (d) 1/3

101. 12 persons amongst whom X and Y are included are seated at a round table. Find
the probability that there are 3 persons between X and Y.
a) 1/11 b) 3/11 c) 2/11 d) None of these

102. Four digits 1, 2, 4 and 6 are selected at random to form a four digit number. What
is the probability that the number so formed, would be divisible by 4?
(a) 1/2 (b) 1/5 (c) 1/4 (d) 1/3

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Theoretical Aspects

103. Initially, probability was a branch of


(a) Physics (b) Statistics
(c) Mathematics (d) Economics.

104. Two broad divisions of probability are


(a) Subjective probability and objective probability
(b) Deductive probability and non–deductive probability
(c) Statistical probability and Mathematical probability
(d) None of these.

105. Subjective probability may be used in


(a) Mathematics (b) Statistics
(c) Management (d) Accountancy.

106. An experiment is known to be random if the results of the experiment


(a) Can not be predicted
(b) Can be predicted
(c) Can be split into further experiments
(d) Can be selected at random.

107. An event that can be split into further events is known as


(a) Complex event
(b) Mixed event
(c) Simple event
(d) Composite event.

108. Which of the following pairs of events are mutually exclusive?


(a) A : The student reads in a school. B : He studies Philosophy.
(b) A : Raju was born in India. B : He is a fine Engineer.
(c) A : Ruma is 16 years old. B : She is a good singer.
(d) A : Peter is under 15 years of age. B : Peter is a voter of Kolkata.

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109. If P(A) = P(B), then


(a) A and B are the same events
(b) A and B must be same events
(c) A and B may be different events
(d) A and B are mutually exclusive events.

110. If P(A B) = 0, then the two events A and B are


(a) Mutually exclusive (b) Exhaustive
(c) Equally likely (d) Independent.

111. If for two events A and B, P(AUB) = 1, then A and B are


(a) Mutually exclusive events
(b) Equally likely events
(c) Exhaustive events
(d) Dependent events.

112. If an unbiased coin is tossed once, then the two events Head and Tail are
(a) Mutually exclusive
(b) Exhaustive
(c) Equally likely
(d) All these (a), (b) and (c).

113. If P(A) = P(B), then the two events A and B are


(a) Independent (b) Dependent
(c) Equally likely (d) Both (a) and (c).

114. If for two events A and B, P(A B) P(A) x P(B), then the two events A and B are
(a) Independent (b) Dependent
(c) Not equally likely (d) Not exhaustive.

115. If P(A/B) = P(A), then


(a) A is independent of B
(b) B is independent of A
(c) B is dependent of A
(d) Both (a) and (b).

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116. If two events A and B are independent, then


(a) A and the complement of B are independent
(b) B and the complement of A are independent
(c) Complements of A and B are independent
(d) All of these (a), (b) and (c).

117. If two events A and B are independent, then


(a) They can be mutually exclusive
(b) They can not be mutually exclusive
(c) They can not be exhaustive
(d) Both (b) and (c).

118. If two events A and B are mutually exclusive, then


(a) They are always independent
(b) They may be independent
(c) They can not be independent
(d) They can not be equally likely.

119. If a coin is tossed twice, then the events ‘occurrence of one head’, ‘occurrence of 2
heads’ and ‘occurrence of no head’ are
(a) Independent (b) Equally likely
(c) Not equally likely (d) Both (a) and (b).

120. The probability of an event can assume any value between


(a) – 1 and 1 (b) 0 and 1, both inclusive
(c) – 1 and 0 (d) none of these.

121. If P(A) = 0, then the event A


(a) will never happen
(b) will always happen
(c) may happen
(d) may not happen.

122. If P(A) = 1, then the event A is known as


(a) symmetric event (b) dependent event
(c) improbable event (d) sure event.

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123. If p : q are the odds in favour of an event, then the probability of that event is

p p
(a) q (b) p+q

q
(c) p+q (d) none of these.

124. If P(A) = 5/9, then the odds against the event A is


(a) 5 : 9 (b) 5 : 4 (c) 4 : 5 (d) 5 : 14

125. If A, B and C are mutually exclusive and exhaustive events, then P(A) + P(B) + P(C)
equals to

1
(a) 3 (b) 1
(c) 0 (d) any value between 0 and 1.

126. If A denotes that a student reads in a school and B denotes that he plays cricket, at
the same time then
(a) P(A B) = 1 (b) P(A B) = 1
(c) P(A B) = 0 (d) P(A) = P(B).

127. P(B/A) is defined only when


(a) A is a sure event (b) B is a sure event
(c) A is not an impossible event (d) B is an impossible event.

128. P(A/B’) is defined only when


(a) B is not a sure event
(b) B is a sure event
(c) B is an impossible event
(d) B is not an impossible event.

129. For two events A and B, P(A B) = P(A) + P(B) only when
(a) A and B are equally likely events
(b) A and B are exhaustive events
(c) A and B are mutually independent
(d) A and B are mutually exclusive.

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130. Addition Theorem of Probability states that for any two events A and B,
(a) P(A B) = P(A) + P(B)
(b) P(A B) = P(A) + P(B) + P(A B)
(c) P(A B) = P(A) + P(B) – P(A B)
(d) P(A B) = P(A) x P(B)

131. For any two events A and B,


(a) P(A) + P(B) > P(A B)
(b) P(A) + P(B) < P(A B)
(c) P(A) + P(B) P(A B)
(d) P(A) x P(B) P(A B)

132. For any two events A and B,


(a) P(A–B) = P(A) – P(B)
(b) P(A–B) = P(A) – P(A B)
(c) P(A–B) = P(B) – P(A B)
(d) P(B–A) = P(B) + P(A B).

133. The limitations of the classical definition of probability


(a) it is applicable when the total number of elementary events is finite
(b) it is applicable if the elementary events are equally likely
(c) it is applicable if the elementary events are mutually independent
(d) (a) and (b).

134. According to the statistical definition of probability, the probability of an event A is


the
(a) limiting value of the ratio of the no. of times the event A occurs to the number
of times the experiment is repeated
(b) the ratio of the frequency of the occurrences of A to the total frequency
(c) the ratio of the frequency of the occurrences of A to the non-occurrence of A
(d) the ratio of the favourable elementary events to A to the total number of
elementary events.

135. The Theorem of Compound Probability states that for any two events A and B.
(a) P(A B) = P(A) x P(B/A) (b) P(A B) = P(A) x P(B/A)
(c) P(A B) = P(A) x P(B) (d) P(A B) = P(B) + P(B) – P(A B).

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136. If A and B are mutually exclusive events, then


(a) P(A) = P(A–B). (b) P(B) = P(A–B).
(c) P(A) = P(A B). (d) P(B) = P(A B).

137. If P(A–B) = P(B–A), then the two events A and B satisfy the condition
(a) P(A) = P(B). (b) P(A) + P(B) = 1
(c) P(A B) = 0 (d) P(A B) = 1

138. The number of conditions to be satisfied by three events A, B and C for complete
independence is
(a) 2 (b) 3 (c) 4 (d) any number.

139. If two events A and B are independent, then P(A B)


(a) equals to P(A) + P(B) (b) equals to P(A) x P(B)
(c) equals to P(A) x P(B/A) (d) equals to P(B) x P(A/B).

140. A, B, C are three mutually independent with probabilities 0.3, 0.2 and 0.4 respectively.
What is P (A B C)?
(a) 0.400 (b) 0.240 (c) 0.024 (d) 0.500

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HOMEWORK SECTION

Two coins are tossed simultaneously. Find the probability of getting:

1. All heads.
a) ¼ b) ½ c) ¾ d) None of these

2. All tails.
a) ¼ b) ½ c) ¾ d) None of these

3. No heads.
a) ¼ b) ½ c) ¾ d) None of these

4. No tails.
a) ¼ b) ½ c) ¾ d) None of these

5. At least one head.


a) ¼ b) ½ c) ¾ d) None of these

6. At least one tail.


a) ¼ b) ½ c) ¾ d) None of these

7. All not heads.


a) ¼ b) ½ c) ¾ d) None of these

8. At most one head.


a) ¼ b) ½ c) ¾ d) None of these

9. Heads will come in first row.


a) ¼ b) ½ c) ¾ d) None of these

10. Heads and tails will occur alternately.


a) ¼ b) ½ c) ¾ d) None of these

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Three dices are rolled. Find the probability that:


11. The faces will show three 5’s.
a) 2/216 b) 3/216 c) 1/216 d) None of these

12. The faces will show 2, 4 & 6.


a) 2/72 b) 1/33 c) 3/96 d) None of these

13. The faces will show 5, 6 & 6.


a) 2/72 b) 1/72 c) 3/72 d) None of these

A bag contains 3 green and 8 white balls.


If two balls are drawn, find the chance that;

14. Both are green.


a) 5/55 b) 2/55 c) 3/55 d) 6/55

15. Both are white.


a) 25/55 b) 28/55 c) 23/55 d) 26/55

16. One green and one white.


a) 25/55 b) 42/55 c) 24/55 d) 6/55

A bag contains 3 green and 8 white balls.


If three balls are drawn, find the chance that;

17. All are green


a) 5/165 b) 1/165 c) 3/165 d) 6/165

18. All are white.


a) 56/165 b) 61/165 c) 63/165 d) 66/165

19. Two green and one white.


a) 25/165 b) 21/165 c) 24/165 d) 26/165

20. One green and two white.


a) 85/165 b) 81/165 c) 83/165 d) 84/165

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A number is selected at random from a set of first 120 natural numbers. What is the
probability that it is divisible by:

21. 10 or 13
a) 7/40 b) 13/40 c) 1/10 d) None of the above

22. 8 or 10
a) 1/5 b) 2/13 c) 3/120 d) None of the above

23. One counter is drawn at random from a bag containing 70 counters marked with the
first 70 numerals. Find the chance that it is a multiple of 8 or 9.
a) 1/14 b) 2/14 c) 4/14 d) 3/14

24. From a set of 18 balls marked 1, 2, 3, ... ... ..., 17, 18, one ball is drawn at random.
What is the probability that its number is either a multiple of 3 or of 4?
a) 0.5 b) 0.67 c) 0.33 d) None of these

25. There are three men aged 60, 65 and 70 years. The probability to live 5 years more
is 0.8 for a 60 year old, 0.6 for a 65 year old and 0.3 for a 70 year old person. Find
the probability that at least 2 of the 3 persons will remain alive 5 years hence.
a) 0.216 b) 0.500 c) 0.612 d) None of the above

26. It is 9 to 5 against a person who is 50 years living till he is 70 and 8 to 6 against


a person who is 60 years living till his 80. Find the probability that at least one of
them will be alive after 20 years.
a) 30 / 49 b) 25 / 64 c) 31 / 64 d) 31 / 49

27. A person is known to hit 4 out of 5 shots, whereas another person is known to hit 3
out of 4 shots. Find the probability of hitting a target if they both try.
a) 0.29 b) 0.92 c) 0.95 d) 0.98

28. An urn contains 4 white and 5 black balls. A second urn contains 5 white and 4 black
balls. One ball is transferred from the 1st urn to the 2nd urn. What is the probability
that it is white?
a) 49/90 b) 59/90 c) 69/90 d) None of these

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29. A bag contains 5 white and 4 black balls. A ball is drawn at random from the bag
and put into another bag, which contains 3 white and 7 black balls. A ball is drawn
at random from the 2nd bag. What is the probability that it is white?
a) 23/99 b) 43/99 c) 54/99 d) 32/99

30. A bag contains 3 red & 5 white balls and the 2nd bag contains 4 red and 6 white
balls. One ball is drawn at random from the first bag and put into 2nd bag. If now,
a ball is drawn from the 2nd bag, find the probability that it is red.
a) 35/88 b) 53/88 c) 16/89 d) None of the above

A nine digit number is to be formed with digits (1, 2, 3, ...., 9), without any digit being
repeated. Find the probability that:

31. The number should begin with 5.


a) 3/9 b) 2/9 c) 4/9 d) 1/9

32. It should end with 9.


a) 1/9 b) 2/9 c) 3/9 d) 4/9

33. It should begin with 5 and end with 9.


a) 2/72 b) 12/72 c) 1/72 d) 11/72

34. It should begin with 5 but not end with 9.


a) 7/72 b) 12/72 c) 1/72 d) 11/72

35. 5 and 9 are at the two extremes.


a) 1/72 b) 2/72 c) 3/72 d) 4/72

36. Four married couples have gathered in a room. Two persons are selected at random
amongst them, find the probability that selected persons are a gentleman and a
lady but not a couple.
a) 1/7 b) 3/7 c) 1/8 d) 3/8

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37. A card is drawn out of a standard pack of 52 cards. What is the probability of
drawing a king or red color card?
a) 4/13 b) 7/13 c) 1/5 d) 1/3

38. A team of 5 is to be selected from 8 boys and 3 girls. Find the probability that it
includes two particular girls.
a) 1/5 b) 2/11 c) 2/30 d) 8/9

39. One card is drawn from a pack of 52 cards, what is the probability that it is a king
or a queen?
a) 1/13 b) 2/13 c) 11/13 d) 5/13

40. In a packet of 500 pens, 50 are found to be defective. A pen is selected at random,
find the probability that it is non defective.
a) 1/100 b) 9/10 c) 9/500 d) 45/500

41. A letter is taken out at random from the word RANGE and another is taken out from
the word PAGE. The probability that they are the same letters is:
a) 1/20 b) 4/20 c) 3/20 d) 5/20

42. A box contains 9 balls, two of which are red, three blue and four black. Three balls
are drawn at random. What is the probability that they are of same color?
a) 3/27 b) 5/84 c) 20/31 d) None of the above

43. A card is drawn from a well-shuffled pack of 52 cards. Let E1 is “a king or a queen
is drawn” and E2 is “a queen or a jack is drawn”. Then which of the following is
CORRECT:
a) E1 and E2 are not independent
b) E1 and E2 are mutually exclusive
c) E1 and E2 are independent
d) None of the above is correct

44. From a pack of cards, two are drawn, the first being replaced before the second is
drawn. The chance that the first is a diamond and the second is king is:
a) 5/52 b) 1/52 c) 4/52 d) 3/52

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45. The probability of getting qualified in Test I and Test II by a student are respectively
1/5 and 3/5. What is the probability that the student gets qualified for one of the
tests?
a) 3/25 b) 22/25 c) 17/25 d) 8/25

46. Suppose X and Y are two events of a random experiment. If the probability of
occurrence of X is 1/5 and the probability of occurrence of Y given X is 1/10, then
the probability of non-occurrence of at least one of the events X and Y is:
a) 49/50 b) 1/50 c) 48/50 d) 2/50

47. A bag contains 8 red and 5 white balls. Two successive draws of 3 balls are made
without replacement. The probability that the first draw will produce 3 white balls
and second 3 red balls is:
a) 7/429 b) 3/429 c) 5/429 d) 6/256

48. Three identical dice are rolled. What is the probability that the same number will
appear on each of them?
a) 1/6 b) 1/36 c) 1/216 d) 7/216

49. Among the examinees in an examination; 30%, 35% and 45% failed in Statistics,
in Mathematics and in at least one of the subjects respectively. An examinee is
selected at random. What is the probability that he failed in Mathematics only?
a) 0.15 b) 0.25 c) 0.225 d) 0.55

50. An article consists of two parts X and Y. The manufacturing process of each part is
such that probability of defect in X is 0.08 and that Y is 0.05. What is the probability
that the assembled product will not have any defect?
a) 0.864 b) 0.874 c) 0.748 d) 0.648

51. The probability of an event can assume any value between:


a) 0 and 1 b) -1 and 0 c) -1 and 1 d) None of the above

52. The probability that a trainee will remain with a company is 0.8. The probability
that an employee earns more than Rs. 30,000 per month is 0.4. The probability that
an employee, who was a trainee and remained with the company or who earns
more than Rs. 30,000 per month is 0.9. What is the probability that an employee

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earns more than Rs. 30,000 per month given that he is a trainee, who stayed with
the company?
a) 1/8 b) 3/8 c) 7/8 d) 5/8

53. The limiting relative frequency of probability is:


a) Classical b) Statistical c) Mathematical d) None of the above

54. If A and B are two independent events and P(A U B) = 2/5; P(B) = 1/3, find P(A).
a) 1/9 b) 1/10 c) 2/9 d) 2/10

55. A bag contains 12 balls of which 3 are red. 5 balls are drawn at random. Find the
probability that in 5 balls, 3 are red.
a) 5/396 b) 1/22 c) 1/36 d) 3/123

56. If P(A) = 2/3; P(B) = 3/5; P(AUB) = 5/6, Find P(B/A)


a) 11/20 b) 13/20 c) 5/6 d) None of the above

57. If P(A∩B) = P(A) x P(B), then the events are:


a) Exhaustive Events b) Independent Events
c) Mutually Exclusive Events d) Mutually Inclusive Events

58. If X and Y are independent E(XY) is also known as:


a) E(X) + E(Y) b) E(X) . E(Y)
c) E(X) – E(Y) d) None of the above

59. What is the probability that a word selected at random from the words formed by
arranging letters of the word REGULATION, such that vowels come at odd places in
the chosen word?
a) 1/144 b) 1/252 c) 144/252 d) 4/5

60. In a pack of playing cards with two jokers, probability of getting king of spade is:
a) 2/54 b) 1/54 c) 2/52 d) 1/52

61. Consider two events A and B, not mutually exclusive, such that P(A) = ¼, P(B) = 2/5,
P(AUB) = ½, then P(AB) is:
a) 1/10 b) 3/20 c) 2/10 d) 3/7

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62. If X be the sum of two numbers obtained when two die are thrown simultaneously,
then P(X ≥ 7) is:
a) 6/12 b) 7/12 c) 7/24 d) 6/36

63. If P(A/B) = P(A), then A and B are:


a) Dependent events b) Independent events
c) Composite events d) Mutually exclusive events

64. A bag contains 3 white and 5 black balls and second bag contains 4 white and 2
black balls. If one ball is taken from each bag, what is the probability that both the
balls are white?
a) ½ b) ¼ c) 1/3 d) 1/5

65. The odds in favor of A solving a problem is 5:7 and odds against B solving the same
problem is 9:6. What is the probability that if both of them try, the problem will be
solved?
a) 147/180 b) 117/180 c) 118/180 d) 119/180

66. Consider Bag I – 2 white balls, 3 black balls and Bag II – 4 white balls, 6 black balls.
One ball is transferred from Bag I to Bag II, then one ball is drawn from Bag II. What
is the probability that drawn ball is white?
a) 22/65 b) 22/55 c) 22/46 d) 21/55

67. If P(A U B) = P(A), Find P(A ∩ B)


a) 0 b) P(B) c) P(A) + P(B) d) P(A).P(B)

68. A bag contains 5 red balls, 4 blue balls and “X” green balls. If the random probability
of picking two green balls is 1/7, what is the number of green balls (X)?
a) 5 b) 6 c) 7 d) 8

69. The probability of Girl getting scholarship is 0.6 and the same probability for Boy is
0.8. Find the probability that at least one of the categories getting scholarship.
a) 0.32 b) 0.92 c) 0.44 d) 0.54

70. A coin is tossed 5 times, what is the probability that exactly 3 heads will occur?
a) 1/32 b) 5/16 c) 5/32 d) 3/32

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71. What is the probability of selecting 3 girls from a group of 5 girls and 3 boys?
a) 15/28 b) 5/28 c) 1/28 d) 1/56

72. A and B appear for an interview for two vacancies. The probability of A’s selection is
1/3 and that of B’s selection is 1/5. Find the probability that only one of them will
be selected.
a) 3/5 b) 2/5 c) 4/5 d) 5/6

73. Two dice are thrown together. Find the probability of getting a multiple of 2 on 1st
dice and multiple of 3 on the 2nd dice.
a) 2/6 b) 1/6 c) 2/3 d) 1/3

74. A bag contains 6 red balls and some blue balls. If the probability of drawing a blue
ball from the bag is twice that of a red ball, find the number of blue balls in the
bag.
a) 10 b) 12 c) 16 d) 14

75. The probability of selecting a sample of size “n” out of a population of size “N” by
simple random sampling with replacement is:
a) 1/N b) 1/Nn c) 1/NCn d) 1/N!

76. A box contains 2 red, 3 green and 2 blue balls. Two balls are drawn at random.
What is the probability that none of the balls drawn is blue?
a) 11/21 b) 10/21 c) 5/7 d) 2/7

77. The odds that a book will be favorably received by 3 independent reviewers are 5
to 2, 4 to 3 and 3 to 4 respectively. What is the probability that out of 3 reviewers a
majority will be favorable?
a) 209/434 b) 209/343 c) 209/350 d) 209/334

78. Find the probability of drawing an ace on each of two consecutive draws from a well
shuffled pack of cards, without replacement:
a) 2/221 b) 1/221 c) 5/221 d) 5/51

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79. The probability of a cricket team winning match in Kolkata is 2/5 and losing match
at Delhi is 1/7. What is the probability of the team winning at least one match?
a) 3/35 b) 32/35 c) 2/35 d) 1/7

80. Two coins are tossed simultaneously. Find the probability of getting exactly one
head.
a) ¼ b) 2/4 c) ¾ d) None of the above

81. If a pair of dice is thrown then the probability that the sum of the digits is neither 7
nor 11 is:
a) 5/9 b) 7/9 c) 6/9 d) 3/9

82. From 6 positive and 8 negative numbers, 4 numbers are chosen at random without
replacement and are then multiplied. The probability that the product of the chosen
numbers will be positive number is:
a) 70/1001 b) 409/1001 c) 420/1001 d) 505/1001

83. If an unbiased die is tolled once, the odds in favor of getting a point which is multiple
of 3 is:
a) 1 : 1 b) 1 : 2 c) 1 : 3 d) 1 : 4

84. A bag contains 15 one rupee coins, 25 two rupees coins and 10 five rupees coins. If
a coin is selected at random then probability for not selecting a one rupee coin is:
a) 0.20 b) 0.30 c) 0.35 d) 0.70

85. If two letters are taken at random from the word “HOME”, what is the probability
that none of the letters would be vowels?
a) ½ b) 1/6 c) 1/3 d) ¼

86. In a game, cards are thoroughly shuffled and distributed equally among four
players. What is the probability that a specific player gets all the four kings?

a) b)

c) d)

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CA FOUNDATION STATISTICS

87. A bag contains 4 red and 5 black balls. Another bag contains 5 red and 3 black
balls. If one ball is drawn at random from each bag, then the probability that one
red and one black ball is drawn is:
a) 12/72 b) 37/72 c) 25/72 d) 13/72

88. If P(A) = 2/3, P(B) = 3/5, P(A U B) = 5/6, find P(A/B’)


a) 5/12 b) 7/12 c) ¼ d) ¾

30% of the students failed in Maths, 20% in Chemistry and 10% in both. Find the
probability that

89. He has failed either in Maths or in Chemistry.


a) 2 / 5 b) 3 / 5 c) 1 / 5 d) 1 / 10

90. He has failed neither in Maths nor in Chemistry.


a) 2 / 5 b) 3 / 5 c) 1 / 5 d) 1 / 10

91. He has failed in Maths but not in Chemistry.


a) 2 / 5 b) 3 / 5 c) 1 / 5 d) 1 / 10

92. He has failed in Chemistry but not in Maths.


a) 2 / 5 b) 3 / 5 c) 1 / 5 d) 1 / 10

93. He has failed in Maths known that he has failed in chemistry.


a) 2 / 5 b) 1 / 2 c) 1 / 5 d) 1 / 10

94. He has failed in Chemistry known that he failed in Maths.


a) 2 / 5 b) 3 / 5 c) 1 / 3 d) 1 / 9

95. He has failed in Maths known that he had not failed in Chemistry.
a) 2 / 5 b) 3 / 5 c) 1 / 7 d) 1 / 4

96. He has failed in Chemistry known that he has not failed in Maths
a) 1 / 7 b) 3 / 4 c) 1 / 5 d) 1 / 10

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CA FOUNDATION STATISTICS

97. He has not failed in Chemistry known that he has failed in Maths.
a) 2 / 5 b) 2 / 3 c) 1 / 5 d) 1 / 10

98. He has not failed in Maths known that he has failed in Chemistry.
a) 2 / 5 b) 3 / 5 c) 1 / 3 d) 5 / 10

99. He has not failed in Chemistry, known that he has not failed in Maths.
a) 2 / 7 b) 3 / 7 c) 6 / 7 d) 1 / 10

100. He has not failed in Maths known that he has not failed in Chemistry.
a) 2 / 4 b) 3 / 4 c) 1 / 5 d) 1 / 10

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HOMEWORK SOLUTION

TWO coins are tossed. S = (H,H) (H,T) (T,H) (T,T)

Total Cases = 4
1. Favorable Cases = 1. P = 1 / 4. Option A

2. Favorable Cases = 1. P = 1 / 4. Option A

3. No heads = 1 Case. P = 1 / 4. Option A

4. No tails = 1 Case. P = 1 / 4. Option A

5. At least one head = 3 Cases. P = 3 / 4. Option C

6. At least one tail = 3 Cases. P = 3 / 4. Option C

7. All not heads = 3 Cases. P = 3 / 4. Option C

8. At most one head = 3 Cases. P = 3 / 4. Option C

9. Heads come in first row = 2 Cases. P = 2 / 4 = 1 / 2. Option B

10. Heads and tails occur alternately = 2 Cases. P = 2 / 4 = 1 / 2. Option B


3 dices are rolled.

Total cases = 6x6x6 = 216

11. 5,5,5 – 1 case. P = 1 / 216. Option C

12. 2, 4, 6 – 3! = 6 cases. P = 6 / 216 = 2/72 = Option A

13. 5, 6, 6 – 3!/2! = 6/2 = 3 Cases. P = 3 / 216 = 1 / 72. Option B

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Total balls = 3 + 8 = 11
2 balls are drawn. Total cases = 11C2 = 55

14. Both are green = 3C2 = 3 cases. P = 3/55. Option C

15. Both are white = 8C2 = 28 cases. P = 28/55. Option B

16. One green one white = 3C1 x 8C1 = 24 cases. P = 24/55/ Option C

Total balls = 3 + 8 = 11

Total cases = 11C3 = 165

17. All are green = 3C3 = 1 case. P = 1/165. Option B

18. All are white = 8C3 = 56 cases. P = 56/165. Option A

19. Two green one white = 3C2 x 8C1 = 24 cases. P = 24/165. Option C

20. One green 2 white = 3C1 x 8C2 = 84 cases. P = 84/165. Option D

21. Multiple of 10 = 12 cases

Multiple of 13 = 9 cases
LCM of 10 and 13 is 130
Total cases = 12 + 9 = 21
P(10 or 13) = 21/120 = 7/40. Option A

22. Multiple of 8 = 15 cases


Multiple of 10 = 12 cases
LCM of 8 and 10 = 40
Multiple of 40 = 3 cases
Total Favorable cases = 15 + 12 – 3 = 24
P( 8 or 10) = 24/120 = 1/5. Option A

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CA FOUNDATION STATISTICS

23. Multiple of 8 = 8 cases


Multiple of 9 = 7 cases
LCM of 8 and 9 = 72
Total cases = 8 + 7 = 15
P(8 or 9) = 15/70 = 3/14. Option D

24. Multiple of 3 = 6 cases


Multiple of 4 = 4 cases
LCM of 3 and 4 = 12
Multiple of 12 = 1
Total cases = 6 + 4 – 1 = 9
P(3 or 4) = 9/18 = 0.5. Option A

25. P(ABC) = 0.8 * 0.6 * 0.3 = 0.144


P(ABC’) = 0.8 * 0.6 * 0.7 = 0.336
P(AB’C) = 0.8 * 0.4 * 0.3 = 0.096
P(A’BC) = 0.2 * 0.6 * 0.3 = 0.036
Total probability = 0.144 + 0.336 + 0.096 + 0.036 = 0.612. Option C

26. P(A) = 5/14, P(B) = 6/14


P(A’B’) = 9/14 * 8/14 = 72/196
At least one is alive = 1 – 72/196 = 124/196 = 31/49. Option D

27. P(A) = 4/5, P(B) = ¾


P(A’B’) = 1/5 * ¼ = 1/20
Target is hit = 1 – 1/20 = 19/20 = 0.95. Option C
28. P(W) = P(W1)*P(W2/W1) + P(B1)*P(W2/B1) = 4/9*6/10 + 5/9*5/10 = 49/90. Option A

29. P(W) = P(W1)*P(W2/W1) + P(B1)*P(W2/B1) = 5/9*4/11 + 4/9*3/11 = 32/99. Option D

30. P(R) = P(R1)*P(R2/R1) + P(W1)*P(R2/W1) = 3/8*5/11 + 5/8*4/11 = 35/88. Option A

Total cases = 9!
31. Begin with 5 = 1*8! = 8! Cases. P = 8!/9! = 1/9. Option D

32. End with 9 = 8!*1 = 8! Cases. P = 8!/9! = 1/9. Option A

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CA FOUNDATION STATISTICS

33. Begin with 5 and end with 9 = 1*7!*1 = 7! Cases. P = 7!/9! = 1/72. Option C

34. Begin with 5 but not end with 9 = 8! – 7! = 7!*7 cases. P = 7!*7/9! = 7/72. Option A

35. 5 and 9 are at two extremes = 7!*2! = 2*7! Cases. P = 2*7!/9! = 2/72. Option B

36. Total ways = 8C2 = 28; Favorable cases = 4C1*3C1 = 12. P = 12/28 = 3/7. Option B

37. P(King) = 4C1/52C1 = 4/52; P(Red) = 26C1/52C1 = 26/52


P(King or Red) = 2C1/52C1 = 2/52
P = 4/52 + 26/52 – 2/25 = 28/52 = 7/13. Option B

38. Total ways = 11C5 = 462


Favorable cases = 2C2 * 9C3 = 84
P = 84/462 = 2/11. Option B

39. P(K) = 4/52; P(Q) = 4/52. P(K or Q) = 4/52 + 4/52 = 8/52 = 2/13. Option B

40. P(Non Defective) = 450C1 / 500C1 = 450/500 = 9/10. Option B

41. P(A,A) = 1/5*1/4 = 1/20


P(E,E) = 1/5*1/4 = 120
P(G,G) = 1/5*1/14 = 120
P(Same letter) = 1/20 + 1/20 + 1/20 = 3/20. Option C

42. P(3 Blue) = 3C3/9C3 = 1/84


P(3 Black) = 4C3/9C3 = 4/84
P(Same Color) = 1/84 + 4/84 = 5/84. Option B

43. P(E1) = 4/52 + 4/52 = 8/52 = 2/13


P(E2) = 4/52 + 4/52 = 8/52 = 2/13
P(E1 and E2) = 4/52 = 1/13
P(E1 and E2) ≠ P(E1) * P(E2)
E1 and E2 are not mutually exclusive (as Jack is present in both events), neither it is
independent. Option A

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CA FOUNDATION STATISTICS

44. P(D, K) = 13/52 * 4/52 = 1/52. Option B

45. P(T1’ and T2’) = 4/5 * 2/5 = 8/25


P(qualified in at least one test) = 1 – 8/25 = 17/25. Option C

46. P(XY) = 1/5 * 1/10 = 1/50


Probability of non occurrence of at least one event = 1 – 1/50 = 49/50. Option A

47. P(3W, 3R) = 5C3/13C3 * 8C3/10C3 = 10/286 * 56/120 = 7/429. Option A

48. P(same number) =6 favorable case (111, 222, ... ...,666). P = 6/216 = 1/36. Option B

49. P(SM) = 0.30 + 0.35 – 0.45 = 0.20


P(M only) = 0.35 – 0.20 = 0.15. Option A

50. P(No defect) = (1 – 0.08) * (1 – 0.05) = 0.92 * 0.95 = 0.874. Option B

51. The probability of an event can assume any value between 0 and 1 option A

52. P(A) = 0.8, P(B) = 0.4, P(A or B) = 0.9 P(AB) = 0.8 + 0.4 – 0.9 = 0.3. P(B/A) = 0.3/0.8 =
3/8. Option B

53. The limiting relative frequency of probability is the Statistical Definition of probability.
Option B

54. 2/5 = P(A) + 1/3 – P(A)*1/3; or P(A) = 1/10. Option B

55. P(3R) = 3C3*9C2/12C5 = 36/792 = 1/22. Option B

56. P(AB) = 2/3+3/5 – 5/6 = (20 + 18 – 25)/30 = 13/30. P(B/A) = P(AB)/P(A) = 13/30 / 2/3
= 13/20. Option B

57. By definition, A and B are independent events. Option B

58. E(XY) = E(X) . E(Y). Option B

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CA FOUNDATION STATISTICS

59. Total words = 10!. Words with vowels at odd places = 5P5*5P5 = 5!*5!. P=5!*5!/10! =
1/252. Option B

60. Total cards = 52 + 2 = 54. P(King of spade) = 1C1/54C1 = 1/54. Option B

61. P(AB) = ¼ + 2/5 – ½ = 0.25 + 0.40 – 0.50 = 0.15 = 15/100 = 3/20. Option B

62. P(X ≥ 7) = P(X = 7, 8, 9, 10, 11, 12) = (6+5+4+3+2+1)/36 = 21/36 = 7/12. Option B

63. P(A/B) = P(AB)/P(B) = P(A). Thus, P(AB) = P(A).P(B). A and B are independent events.
Option B

64. P(Both white) = 3/8 * 4/6 = 1 / 4. Option B

65. P(A) = 5/12, P(B) = 6/15. P(A’B’) = 7/12 * 9/15 = 63/180. P(Solved) = 1 – 63/180 =
117/180. Option B

66. P(W) = 2/5*5/11 + 3/5*4/11 = 22/55. Option B

67. P(AB) = P(A) + P(B) – P(A U B) = P(A) + P(B) – P(A) = P(B). Option B

68. P(2 green) = XC2/(9+X)C2 = 1/7


X(X-1)/(9+X)(8+X) = 1/7
7X2 – 7X = X2 + 17X + 72
6X2 – 24X – 72 = 0
X2 – 4X – 12 = 0
(X – 6) (X + 2) = 0
X = 6. Option B

69. P(A’B’) = 0.4 * 0.2 = 0.08. P(at least one) = 1 – 0.08 = 0.92. Option B

70. P(3H 2T) = 5C3/25 = 10/32 = 5/16. Option B

71. P(3 girls) = 5C3/8C3 = 10/56 = 5/28. Option B

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CA FOUNDATION STATISTICS

72. P(A B') + P(A' B) = P(A)•P(B') + P(A')•P(B) . Option B

1 4 2 1 6 2
= x + x = =
3 5 3 5 15 5

73. (23) (26) (43) (46) (63) (66) = 6 cases. P = 6/36 = 1/6. Option B

74. P(B) = 2*P(R). Thus, X/(X+6) = 2 * 6/(X+6); or X = 12. Option B

75. P(Without replacement) = 1 / Nn. Option B

76. P(No blue) = 5C2/7C2 = 10/21. Option B

77. P(ABC) = 5/7 * 4/7 * 3/7 = 60/343


P(ABC’) = 5/7 * 4/7 * 4/7 = 80/343
P(AB’C) = 5/7 * 3/7 * 3/7 = 45/343
P(A’BC) = 2/7 * 4/7 * 3/7 = 24/343
Total probability = (60 + 80 + 45 + 24)/343 = 209/343. Option B

78. P(A,A) = 4/52 * 3/51 = 1/221. Option B

79. P(A’B’) = 3/5 * 1/7 = 3/35. P(At least 1 win) = 1 – 3/35 = 32/35. Option B

80. P(1H) = Favorable 2 cases (HT, TH). P = 2/4. Option B

81. P(7) = 6/36, P(11) = 2/36, P(7 or 11) = 8/36. P(7’ or 11’) = 1 – 8/36 = 28/36 = 7/9.
Option B

82. P(all positive) = 6C4/14C4 = 15/1001


P(all negative) = 8C4/14C4 = 70/1001
P(2 positive, 2 negatives) = 6C2*8C2 / 14C4 = 420/1001
Total probability = (15 + 70 + 420)/1001 = 505/1001. Option D

83. Cases multiple of 3 are 3 and 6. P(A) 2/6 = 2/6 = 1/3 ∴P (A) = 2/3 ∴ odds in favour
= 1:2 Option B

84. P(no 1 rupee coin) = 35C1/50C1 = 35/50 = 7/10 = 0.70. Option D

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CA FOUNDATION STATISTICS

85. 2 letters at a time. Cases – HO, HM, HE, OM, OE, ME = 6 cases
Favorable cases = HM = 1 case. P = 1/6. Option B

86. P(all 4 kings out of 13 cards) = 4C4 * 48C9 / 52C13. Option A

87. P(RB) + P(BR) = 4/9*3/8 + 5/9*5/8 = 37/72. Option B

88. P(AB) = 2/3 + 3/5 – 5/6 = 13/30


P(AB’) = P(A) – P(AB) = 2/3 – 13/30 = 7/30
P(A/B’) = P(AB’)/P(B’) = 7/30 / 2/5 = 7/12. Option B
P(M) = 0.30, P(C) = 0.20, P(CM) = 0.10

89. P(C U M) = 0.30 + 0.20 – 0.10 = 0.40 = 4/10 = 2/5 Option A

90. P(C’ M’) = 1 – 2/5 = 3/5 Option B

91. P(M C’) = P(M) – P(CM) = 0.30 – 0.10 = 0.20 = 2/10 = 1/5. Option C

92. P(C M’) = 0.20 – 0.10 = 0.10 = 1/10. Option D

93. P(M/C) = P(CM)/P(C) = 0.10/0.20 = 1 / 2. Option B

94. P(C / M) = P(CM) / P(M) = 0.10/0.30 = 1 / 3. Option C

95. P(M / C’) = P(C’ M) / P(C’) = 0.20 / 0.80 = 2/8 = 1 / 4. Option D

96. P(C/M’) = P(CM’) / P(M’) = 0.10 / 0.70 = 1/7. Option A

97. P(C’/M) = P(C’M) / P(M) = 0.20 / 0.30 = 2/3. Option B

98. P(M’ / C) = P(CM’) / P(C) = 0.10 / 0.20 = 1 / 2 = 5/10. Option D

99. P(C’/M’) = P(C’M’) / P(M’) = 0.60/0.70 = 6/7. Option C

100. P(M’ / C’) = P(C’M’) / P(C’) = 0.60/0.80 = 6/8 = ¾. Option B

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CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 9


50 Marks

1. A bag contains 2 red and 1 green balls. Another bag contains 2 red and 2 green
balls. A bag is selected at random and then a ball was drawn from it. If it was found
to be red, then the probability that it has been drawn from the first bag is:
a) 4/7 b) 3/7
c) 2/3 d) 14/24

2. For any two events A, B; let P(A) = 2/3; P(B) = 3/8 and P(A ∩ B) = ¼, then A and B
are:
a) Independent and mutually exclusive events
b) Independent and non mutually exclusive events
c) Mutually exclusive and non independent events
d) Non mutually exclusive and non independent events

3. An unbiased die is thrown twice. The probability of the sum of numbers obtained on
the two faces being divisible by 4 is:
a) ½ b) ¼
c) 1/3 d) 2/5

4. The sum of numbers obtained in throw of a die twice is S. Probability of S will be


maximum if S is:
a) 5 b) 7
c) 8 d) 9

(For Q. No.: 5 – 8) The following table shows the qualification of 100 employees in
a firm according to their age and qualification?

Below 30 30 to 40 Above 40 Total
Graduate 10 20 15 45
Post-Graduate 15 25 15 55
Total 25 45 30 100
If an employee is selected at random, find the probability that

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CA FOUNDATION STATISTICS

5. His age is below 30 years;


a) ¼ b) 1/3
c) ½ d) None

6. He is a graduate,
a) 8/20 b) 10/20
c) 13/20 d) 9/20

7. He is a post-graduate and his age is above 40 years,


a) 3/20 b) 13/20
c) 7/20 d) 11/20

8. He is a post graduate if it is known that his age between 30 – 40 years.


a) 4/9 b) 5/9
c) 7/9 d) None

(For Q. No.: 9 & 10) A die is loaded in such a way that each odd number is as twice
likely to occur as even number. Find:

9. The probability that the number rolled is a perfect square


a) 0.33 b) 0.53
c) 0.43 d) 0.67

10. The probability that the number rolled is a perfect square provided that it is greater
than 3.
a) 0.22 b) 0.11
c) 0.33 d) 0.54

(For Q. No. 11 – 15) 100 students randomly selected from a group of students are
cross-classified by age and educational qualification as below:

Qualification Age (in years) Total


25 and under 26 – 28 Over 28
Graduate 24 19 11 54
Post-Graduate 11 16 19 46
Total 35 35 30 100

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CA FOUNDATION STATISTICS

A student is selected at random from this group. Find the probability that:

11. His age is between 26 – 28 years.


a) 0.45 b) 0.25
c) 0.35 d) 0.15

12. He is a graduate.
a) 0.45 b) 0.65
c) 0.85 d) 0.54

13. His age is between 26 – 28 years and he is a graduate.


a) 0.91 b) 0.19
c) 0.54 d) 0.45

14. His age is between 26 – 28 years assuming that he is a graduate.


a) 0.25 b) 0.15
c) 0.45 d) 0.35

15. He is a graduate assuming that his age is between 26 – 28 years.


a) 0.54 b) 0.45
c) 0.33 d) 0.98

16. Three groups of children contain 3 girls and 1 boy, 2 girls and 2 boys and 3 boys and
1 girl. One child is selected at random from each of the group. The probability that
the three selections consist of 1 girl and 2 boys is:
a) 31 / 32 b) 16 / 32
c) 13 / 32 d) 15 / 32

17. In a group of equal number of men and women, 10 % men and 45% women are un-
employed. What is the probability that a person selected at random is employed.
a) 29 / 40 b) 28 / 41
c) 27 / 42 d) 29 / 41

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CA FOUNDATION STATISTICS

18. A and B throw with a pair of dice. A wins if he throws 6 before B throws 7 and B
wins if he throws 7 before A throws 6. If A begins, the chance of his winning is:
a) 29 / 62 b) 31 / 70
c) 30 / 62 d) 30 / 61

19. In a card game, 4 cards are drawn at random. Find the probability that all 4 cards
are from the same suit.
a) 0.01 b) 0.021
c) 0.008 d) 0.012

20. A value is chosen at random from a population. What is the probability that the
value is larger than the median of the population?
a) 0.67 b) 0.5
c) 0.25 d) 0.23

21. The probability that the sum 8 appears in a single toss of a pair of fair dice is
a) 4/36 b) 5/36
c) 6/36 d) 7/36

(For Q. No.: 22 – 24) A bag contains 5 red and 3 black balls and another bag
contains 4 red and 5 black balls. A bag is selected at random and a ball is selected.
Find the chance that:

22. It is red.
a) 77 / 177 b) 87 / 144
c) 97 / 854 d) 77 / 144

23. It is black.
a) 67 / 144 b) 77 / 144
c) 97 / 144 d) 87 / 145

24. If 2 balls are drawn from the selected bag, find the chance that one red and one
black is drawn.
a) 275 / 957 b) 597 / 5149
c) 275 / 504 d) None of the above

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CA FOUNDATION STATISTICS

(For Q. No.: 25 – 27) Out of the 20 games of chess played between two players A
and B, A won 12, B won 4 and 4 ended in a tie. In a tournament of three games find
the probability that:

25. B wins all three


a) 2 / 125 b) 1 / 125
c) 3 / 125 d) None

26. B wins at least 1


a) 61 / 125 b) 12 / 125
c) 89 / 125 d) 78 / 125

27. 2 games end in a tie.


a) 12 / 125 b) 21 / 125
c) 49 / 125 d) 64 / 125

28. Four cards are drawn from a pack of 52 cards. What is the probability that they are
from four different suits?
a) 219/2082 b) 2197/20285
c) 2197/20825 d) 2179/20825

29. The 1st 12 letters of the alphabet are written at random. Find the probability that
there are exactly 4 letters between C and D.
a) 6/66 b) 8/66
c) 7/66 d) 13/66

30. The letters of the word ‘EDUCATION’ are arranged at random. Find the probability
that there will be exactly four letters between A and D.
a) 1/7 b) 1/3
c) 1/9 d) 1/3

31. From 8 counters marked 1, 2, 3,...,8, 4 counters are selected at random. Find the
chance of getting at least one odd and one even counter.
a) 31/35 b) 34/35
c) 3/35 d) 1/35

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CA FOUNDATION STATISTICS

32. 40% of students in a class are girls. If 60% and 70% of the boys and the girls
respectively of the class pass a test. What is the probability that a student selected
from this class will have passed the test?
a) 16/25 b) 15/36
c) 61/85 d) 53/65

33. In a group of 14 males and 6 females, 8 and 3 of the males and the females
respectively are aged above 40 years. What is the probability that a person selected
at random from his group is aged 40, given that selected person is a female?
a) 0.29 b) 0.33
c) 0.67 d) 0.50

34. The odds against a certain event are 5:2 and odds in favour of another event,
independent of the former, are 6:5. Find the chance that at least one of the events
will happen.
a) 25/77 b) 35/77
c) 52/77 d) 65/87

35. A person is known to hit 4 out of 5 shots, whereas another person is known to hit 3
out of 4 shots. Find the probability of hitting a target if they both try.
a) 0.29 b) 0.92
c) 0.95 d) 0.98

36. What is the probability that over a two day period the number of requests would be
either 11 or 12 if at a motor garage the records of service requests along with their
probabilities are given below:
Daily Demand 5 6 7
Probability 0.25 0.65 0.10

a) 0.7579 b) 0.8589
c) 0.7975 d) 0.7957

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CA FOUNDATION STATISTICS

(For Q. No.: 37 & 38) Out of the numbers 1 to 120, one is selected at random. What
is the probability that it is divisible by:

37. 10 or 13?
a) 8/40 b) 7/40
c) 6/40 d) 13/40

38. 8 or 10?
a) 8/40 b) 7/40
c) 5/40 d) None

(For Q. No.: 39 & 40) A man has 2 French, 5 German and 4 Spanish friends. He invites
them in his birthday party. Find the probability that there will be:

39. At least one German friend.


a) 29/32 b) 48/64
c) 31/32 d) None of these

40. At least 1 friend from each country.


a) 310/510 b) 351/551
c) 315/511 d) None of these

41. Out of the 5 players of which 2 are members of a certain club, 3 are to be selected
to represent the country at an international tournament. Find the probability that
less than two of those selected to represent are members of the club.
a) 0.75 b) 0.60
c) 0.80 d) 0.70

42. The weekly wages of 6 worker in a factory are (Rs.) 62, 90, 78, 85, 79 & 68. Two of
the laborers are to be selected at random to serve as representatives. What is the
probability that at least one will have a wage lower than the average?
a) 0.40 b) 0.50
c) 0.60 d) None of these

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CA FOUNDATION STATISTICS

43. There are 4 hotels in a town and 3 persons entered the town. Find the probability
that they check into different hotels.
a) 0.475 b) 0.325
c) 0.375 d) None of these

(For Q. No.: 44 & 45) A bag contains 3 green and 8 white balls. If one ball is drawn
at random, find the chance that:

44. It is green.
a) 1/11 b) 2/11
c) 3/11 d) 4/11

45. It is white.
a) 2/11 b) 4/11
c) 6/11 d) 8/11

(For Q. No.: 46 & 47) The independent probability that the three sections of the
costing department will encounter error is 0.1, 0.3 and 0.3, each week respectively.
Calculate the probability that there will be;

46. At least 1 computer error.


a) 0.955 b) 0.459
c) 0.959 d) 0.559

47. One and only one computer error encountered by the costing department.
a) 0.247 b) 0.427
c) 0.924 d) None of these

(For Q. No.: 48 – 50) Two balanced dice are thrown together. Find the probability of
obtaining:

48. 4 in both dice.


a) 2/18 b) 1/36
c) 3/36 d) 7/36

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CA FOUNDATION STATISTICS

49. Doublets.
a) 5/6 b) 5/36
c) 1/6 d) 1/36

50. 2 in one and 5 in another.


a) 2/36 b) 1/36
c) 15/36 d) 2/18

1 2 3 4 5 6 7 8 9 10
A B B B A D A B A B

11 12 13 14 15 16 17 18 19 20
C D B D A C A D A B

21 22 23 24 25 26 27 28 29 30
B D A C B A A C C C

31 32 33 34 35 36 37 38 39 40
B A D C C C B A C D

41 42 43 44 45 46 47 48 49 50
D C C C D D B B C A

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CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS

1. P(Red) = ½ [2/3 + 2/4] = 1/3 + ¼ = 7/12


P(Red from first bag) = 1/3 / 7/12 = 4/7
Option A

2. P(A) * P(B) = 2/3 * 3/8 = ¼ = P(AB) → A and B are independent events


P(A) + P(B) = 2/3 + 3/8 = 25/24 > 1 → A & B are non mutually exclusive events
Option B

3. Sum is divisible by four, i.e. sum = 4, 8, 12


P(4) = 3/36 [(1,3) (2,2) (3,1)]
P(8) = 5/36 [(2,6) (3,5) (4,4) (5,3) (6,2)]
P(12) = 1/36 [(6,6)]
Required probability = 3/36 + 5/36 + 1/36 = 9/36 = ¼
Option B

4. Probability of Sum is maximum = 6/36 = 1/6, when sum = 7.


Option B

5. P(age is below 30) = 25/100 = 1/4. Option A

6. P(He is graduate) = 45/100 = 9/20. Option D

7. P(Post graduate and age above 40) = 15/100 = 3/20. Option A

8. P(post graduate, known that age is between 30-40 years) = 25/45 = 5/9.
Option B

9. P(Odd) = 2 P(Even) → 3(2x) + 3x = 1 or x = P(even) = 1/9, P(odd) = 2/9


P(1 or 4) = 2/9 + 1/9 = 3/9 = 1/3 = 0.33. Option A

10. P(Square number greater than 3) = P(4) = 1/9 = 0.11. Option B

11. P(age is between 26 – 28 years) = 35/100 = 0.35. Option C

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CA FOUNDATION STATISTICS

12. P(he is graduate) = 54/100 = 0.54. Option D

13. P(age is between 26-28 and he is graduate) = 19/100 = 0.19. Option B

14. P(age is between 26-28 years / he is graduate) = 19/54 = 0.35. Option D

15. P(he is graduate / age is between 26-28 years) = 19/35 = 0.54. Option A

16. P(1 girl & 2 boys) = (3/4*2/4*3/4) + (1/4*2/4*3/4) + (1/4*2/4*1/4) = 26/64 = 13/32.
Option C

17. P(employed person) = (90% of 100 + 55% of 100)/200 = 145/200 = 29/40. Option A

18. P(A winning) = 5/36 + 31/36*30/36*5/36 + …… = 5/36 [1/(1 – 930/1296)] = 180/366


= 30/61. Option D

19. P(4 cards from the same suit) = 4C1 * 13C4 / 52C4 = 2860 / 270725 = 0.01
Option A

20. P(value is larger than median) = 50/100 = 0.50. Option B

21. P(Sum = 8) = 5/36 [5 cases]. Option B

22. P(Red) = ½ [5/8 + 4/9] = ½[77/72] = 77/144 Option D

23. P(Black) = ½ [3/8 + 5/9] = 67/144. Option A

24. P(red, black) = ½ [15/8C2 + 20/9C2] = ½[15/28 + 20/36] = 1100/2016 = 275/504


Option C

25. P(A) = 12/20, P(B) = 4/20, P(T) = 4/20.


P(3 wins by B) = (4/20)3 = 1/125. Option B

26. P(B wins at least one) = 1 – P(B wins none) = 1 – (4/5)3 = 1 – 64/125 = 61/125
Option A

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27. P(2 games ended in a tie) = (3C2)(4/20)2[12/20 + 4/20] = 3 * 1/25 * 4/5 = 12/125
Option A

28. P(4 cards from different suits) = 134/52C4 = 28561/270725 = 2197/20825 Option C

29. Favorable cases = 10C4 * (12 – 6 + 1)! * 4! * 2! = 210 * 5040 * 24 * 2 = 50803200


Total cases = 12!
Required probability = 50803200/12! = 7/66 Option C

30. Total cases = 9!


Favorable cases = 7C4 * (9 – 6 + 1)! * 4! * 2! = 35 * 4! * 4! * 2
Probability = 70*4!*4! / 9! = 1/9. Option C

31. Total cases = 8C4 = 70


Non - Favorable cases = 4C4 + 4C4 = 2
Probability = 1 – 2/70 = 34/35 Option B

32. Total students = 100


Girls = 40, Boys = 60
Passing the test = 60% of 60 + 70% of 40 = 36 + 28 = 64
Probability = 64/100 = 16/25. Option A

33. P(Female) = 6/20


P( aged 40 and female) = 3/20
Required probability = 3/20 / 6/20 = ½
Option D

34. P(A) = 2/7, P(B) = 6/11


P(at least one happen) = 1 – (5/7 * 5/11) = 1 – 25/77 = 52/77 Option C

35. P(hitting the target) = 1 – (1/5 * ¼) = 1 – 1/20 = 19/20 = 0.95 Option C

36. P(11) = P(5,6 or 6,5) = 2(0.25*0.65) = 0.325


P(12) = P(5,7 or 6,6 or 7,5) = 2(0.25*0.10) + (0.65*0.65) = 0.4725
P(11 or 12) = 0.325 + 0.4725 = 0.7975 Option C

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37. P(10) = 12/120; P(13) = 9/120


P(10 or 13) = 12/120 + 9/120 = 21/120 = 7/40 Option B

38. P(8) = 15/120


P(LCM of 8 and 10 = 40) = 3/120
P( 8 or 10) = 15/120 + 12/120 – 3/120 = 24/120 = 8/40 Option A

39. Total cases = 211


Favorable cases = (25 – 1). 26
Probability = 31/32
Option C

40. (22 – 1)(25 – 1)(24 – 1) = 3*31*15=1395


Probability = 1395/211 = 1395/2048
Option D

41. Total cases = 5C3 = 10


Favorable cases = (3C3) + (3C2*2C1) = 1 + 6 = 7
Probability = 7/10 = 0.70 Option D

42. Average = (62+90+78+85+79+68)/6 = 77


2 people have wages less than the average wages
P(at least one with wages less than average) 1 – 4C2/6C2 = 1 – 6/15 = 9/15 = 3/5 =
060 Option C

43. Probability = 4P3 / 43 = 24/64 = 0.375 Option C

44. P(Green) = 3C1 / 11C1 = 3/11 Option C

45. P(White) = 8C1 / 11C1 = 8/11 Option D

46. P(at least 1 error) = 1 – P(no error) = 1 – (0.9 * 0.7 * 0.7) = 1 – 0.441 = 0.559 Option
D

47. P(only one error) = (0.1 * 0.7 * 0.7) + (0.9 * 0.3 * 0.7) + (0.9 * 0.7 * 0.3)
= 0.049 + 0.189 + 0.189 = 0.427 Option B

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48. P(4 on both dice) = 1/36 * 1/36 = 1/36 Option B

49. P(Doublets) = 6/36 = 1/6


Doublets = 6 cases (1,1) (2,2) (3,3) (4,4) (5,5) (6,6)
Option C

50. P(2, 5) + P(5, 2) = 2/36 Option A

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SELF ASSESSMENT TEST 10


50 Marks

1. A speaks truth in 60% and B in 75% of the cases. In what percentage of cases are
they likely to contradict each other in stating the same fact
a) 0.45 b) 0.54 c) 0.55 d) 0.65

2. A six faced die is so biased that it is twice likely to show an even number as compared
to an odd number when thrown. It is thrown twice. Find the probability that the sum
of the faces thrown will be even.
a) 7 / 9 b) 5 / 9 c) 8 / 9 d) 9 / 9

3. A bag contains 8 red and 5 white balls. Two successive draws of 3 balls are made
without replacement. Find the probability that the 1st drawing will give 3 white and
second drawing will give 3 red balls.
a) 4 / 294 b) 7 / 597 c) 7 / 429 d) 159 / 429

4. With respect to the above question; however, if 3 balls are replaced before the 2nd
draw, find the probability that the 1st drawing will give 3 white and the 2nd will
give 3 red.
a) 140 / 20449 b) 1598 / 20449
c) 140 / 20944 d) None of the above

5. The manufacturing process of an article consists of two parts X and Y. The probabilities
of defects in part X and Y are 10% and 15% respectively. What is the probability
that an assembled product will not have any defects?
a) 0.765 b) 0.756 c) 0.523 d) 0.532

6. A pair of fair dices is thrown. Find the probability of getting a sum of 7, when it is
know that the digit in the first die is greater than that of the 2nd.
a) 0.198 b) 0.200 c) 0.549 d) 0.259

7. In a single cast with 3 dices, what is the probability of throwing 3 sixes?


a) 2/216 b) 1/108 c) 1/216 d) 3/126

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8. In a single cast with 3 dices, find the chance of getting different digits.
a) 4/9 b) 4/13 c) 5/9 d) 5/13

9. In a single cast with 3 dices, find the probability of getting same digits in two dice
and different digit in another.
a) 6/12 b) 5/12 c) 5/13 d) 5/14

10. 5 students A, B, C, D, and E occupy their seats at random in a bench. Find the
probability that the students A and B are not consecutive.
a) 0.55 b) 0.35 c) 0.25 d) 0.60

11. 12 dissimilar balls are distributed at random into 5 boxes A, B, C, D, E. Find the
probability that these boxes contain respectively 3, 4, 1, 4, 0 balls.
a) 136/225 b) 136800/62589
c) 138569/36258 d) 5544/9765625

12. 5 Commerce and 4 science students are arranged at random in a row. Find the
probability so that the commerce and science students are placed alternately?
a) 1/126 b) 2/126 c) 1/216 d) 19/216

13. If the number 1, 2, … N are arranged in a line at random. What is the probability
that the number 1 and 2 will appear next to each other?
a) 2 / N b) N c) 1 / N d) 9 / N

14. The odds against 2 events are 2:7 and 7:5 respectively. If the events are independent,
find the probability that at least one of them will occur?
a) 45 / 74 b) 35 / 54 c) 45 / 54 d) 47 / 54

15. A class consists of 30 boys and 20 girls of which half the boys and half the girls
have blue eyes. What is the probability that a students selected at random is not a
girl with blue eyes?
a) 0.75 b) 0.98 c) 0.56 d) 0.80

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16. The probability that a teacher will take a surprise test during any class meeting is
1/5. If a student is absent on two days, what is the probability that he will miss at
least 1 test?
a) 16 / 25 b) 1 / 25 c) 4 / 25 d) 9 / 25

17. A number is chosen at random from the first n natural numbers and suppose A and
B denotes the events the chosen number is divisible by 2 and 3 respectively. A and
B are independent if n = ?
a) 96 b) 97 c) 99 d) 100

(For Q. No.: 18 & 19) An urn contains 2 white & 2 black balls. A 2nd urn contains 2
white and 4 black balls.

18. If one ball is chosen from each urn, what is the probability that the selected balls
will be of the same colour?
a) 0.33 b) 0.50 c) 0.67 d) None

19. If an urn is selected at random and one ball is drawn from it, what is the probability
that it will be a white ball?
a) 5/12 b) 6/12 c) 7/12 d) 8/12

20. There are three men aged 60, 65 and 70 years. The probability to live 5 years more
is 0.8 for a 60 year old, 0.6 for a 65 year old and 0.3 for a 70 year old person. Find
the probability that at least 2 of the 3 persons will remain alive 5 years hence.
a) 0.216 b) 0.500 c) 0.612 d) None

21. A bag contains 5 white and 4 black balls. A ball is drawn at random from the bag
and put into another bag, which contains 3 white and 7 black balls. A ball is drawn
at random from the 2nd bag. What is the probability that it is white?
a) 23/99 b) 43/99 c) 54/99 d) 32/99

22. One shot is fired from each of the three guns. Let A, B, and C denote the events that
the target is hit by the first, second and the third gun respectively. Assuming that A,
B & C are mutually independent events and that P(A) = 0.5, P(B) = 0.6 and P (C) =
0.8. Find the probability that at least one hits the target.
a) 0.96 b) 0.69 c) 0.33 d) None

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(For Q. No.: 23 & 24) Mr. X is called for an interview of 3 separate posts. At the first
interview there are 5 candidates, at the second 4 candidates and at the third 6
candidates. If selection of each candidate is equally likely, find the probability that
Mr. X will be selected for;

23. At least one post.


a) 0.35 b) 0.55 c) 0.50 d) 0.65

24. At least two posts.


a) 1/10 b) 13/120 c) 52/120 d) 47/120

25. A bag contains 3 red & 5 white balls and the 2nd bag contains 4 red and 6 white
balls. One ball is drawn at random from the first bag and put into 2nd bag. If now,
a ball is drawn from the 2nd bag, find the probability that it is red.
a) 35/88 b) 53/88 c) 16/89 d) None

26. A certain player is known to win with probability 0.3 if the track is fast and 0.4 if the
track is slow. For Monday, there is 0.7 probability of a fast track 0.3 of a slow track.
What is the probability that player X will win on Monday?
a) 0.67 b) 0.99 c) 0.33 d) None

(For Q. No.: 27 – 30) A market research firm is interested in surveying certain


attitudes in small community. There are 125 households broken according to income,
ownership of a T.V. and ownership of a telephone.
Annual Income of Rs. 18000 Annual Income above Rs.
or less 18000
Owner of No Owner of No
Telephone Telephone Telephone Telephone
Owner of a T.V. Set 27 20 18 10
No owner of TV set 18 10 12 10

27. What is the probability of obtaining a T.V. owner if a household is selected at random?
a) 0.40 b) 0.60 c) 0.20 d) 0.30

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CA FOUNDATION STATISTICS

28. If a household has income Rs. 18000 or less and is a telephone subscriber, what is
the probability he has a T.V.?
a) 0.40 b) 0.20 c) 0.60 d) 0.30

29. What is the conditional probability of drawing a household that owns a T.V. given
that the household owns a Telephone?
a) 0.20 b) 0.10 c) 0.50 d) 0.60

30. Are the events, ‘ownership of a T.V.’ and ‘telephone subscriber’ independent?
a) No b) Yes
c) Can’t Say d) None of the above

(For Q. No.: 31 – 33) A frequency distribution of weekly wages of 500 workers is


given below:
Wages 100 – 149 150 – 199 200 – 249 250 – 299 300 – 349 350 - 399

No. of Workers 21 80 175 158 55 11

Two workers are selected at random. Find the probability that the wages of both are:

31. Less than Rs. 200.


a) 101/2945 b) 101/2495
c) 201/2495 d) None of the above

32. Equal to or greater than Rs. 300.


a) 924/34950 b) 429/34950
c) 429/24950 d) 924/24950

33. Equal to or greater than Rs. 200 but lesser than Rs. 300.
a) 27639/63275 b) 27639/62375
c) 19857/59847 d) 15987/62357

(For Q. No.: 34 & 35) Three lots contain respectively 4%, 5% and 10% defective
articles. One article is chosen at random from each lot. Find the probability of
getting;

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CA FOUNDATION STATISTICS

34. Exactly 1 defective.


a) 0.1868 b) 0.1786 c) 0.1686 d) 0.8816

35. At least 1 defective article among the 3 articles drawn.
a) 0.9217 b) 0.2917 c) 0.7192 d) 0.1792

36. A pair of dice is thrown. Find the probability that the sum is 10 or greater if a 5
appears on the first dice.
a) 0.67 b) 0.99 c) 1.00 d) 0.33

37. In supplies of 3 components viz. base, neck and switch for an electric lamp, the
% of defective on a day were 5, 20 and 10 respectively. An assembled lamp is
considered defective if at least 1 of the three components is defective. If components
are selected randomly, what is the probability that an assembled lamp would be
defective?
a) 79 / 250 b) 97 / 250 c) 25 / 250 d) 129 / 250

(For Q. No.: 38 – 42) Four balls are drawn from a bag containing 5 black and 8 white
balls. Find:

38. All white –against.


a) 129 : 14 b) 14 : 129 c) 12 : 138 d) None

39. All black- favour.


a) 1 : 142 b) 145 : 6 c) 3 : 139 d) 10 : 125

40. 2 white and 2 black – favour.


a) 56 : 89 b) 56 : 87 c) 65 : 78 d) None

41. 1 white and 3 black – against.


a) 129 : 61 b) 125 : 87 c) 654 : 987 d) 127 : 16

42. One black and 3 white – favour.


a) 56 : 87 b) 56 : 89 c) 65 : 78 d) None

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CA FOUNDATION STATISTICS

43. What are the odds against throwing an ace or six in a single cast with a dice?
a) 1 : 3 b) 1 : 4 c) 2 : 1 d) 1 : 2

44. A can solve 80% of the problems in statistics and B can solve 70%. What is the
probability that at least one of them will solve a problem selected at random?
a) 0.29 b) 0.18 c) 0.81 d) 0.94

45. How many tosses of a coin are needed so that the probability of getting at least one
head is 87.5%?
a) 2 b) 4 c) 3 d) 8

46. In a game of cards, four cards are drawn at random. What is the probability that it
will contain all 4 kings?
a) 11/4156 b) 11/5146 c) 11/4165 d) None

(For Q. No.: 47 & 48) Three fair coins are tossed once. Find the probability of

47. At least one head


a) 1/8 b) 3/8 c) 5/8 d) 7/8

48. Exactly one tail.


a) 1/8 b) 3/8 c) 5/8 d) 7/8

49. A bag contains 10 red and 6 green balls. Two successive drawings of three balls are
made without replacement. Find the probability that the first drawing will give 3
red balls and second will give three greens balls.
a) 51/1001 b) 25/1001 c) 51/1000 d) 15/1001

50. A bag contains 6 white and 9 black balls. 4 balls are drawn at a time. Find the
probability of the 1st draw to give 4 white balls and the 2nd to give 4 black balls
when the balls are not replaced before the 2nd draw.
a) 7/315 b) 3/715 c) 6/615 d) None

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CA FOUNDATION STATISTICS

1 2 3 4 5 6 7 8 9 10
A B C A A B C C B D

11 12 13 14 15 16 17 18 19 20
D A A D D D A B A C

21 22 23 24 25 26 27 28 29 30
D A C B A C B C D B

31 32 33 34 35 36 37 38 39 40
B C B C D D A A A B

41 42 43 44 45 46 47 48 49 50
D A C D C D D B D B

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CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS

1. P(contradict each other) = (0.60 * 0.25) + (0.40 * 0.75) = 0.45 Option A

2. P(Even) = 2 P(Odd)
3x + 6x = 1; x = 1/9; O(Odd) = 1/9, P(Even) = 2/9
P(Sum is even) = P(E).P(E) + P(O).P(O) = 9(4/81) + 9(1/81) = 45/81 = 5/9 Option B

3. P(3W).P(3R) = 5C3/13C3 * 8C3/10C3 = 10/286 * 56/120 = 560/34320 = 7/429


Option C

4. With Replacement: Probability = 5C3/13C3 * 8C3/13C3 = 10/286 * 56/286 = 140/20449


Option A

5. P(No defects) = 0.90 * 0.85 = 0.765 Option A

6. P(Sum is 7) = 6/36
P(F > S) = 15/36
P(7 and F>S) = 3/36
Required probability = 3/36 / 15/36 = 3/15 = 1/5 = 0.200 Option B

7. P(6,6,6) = 1/63 = 1/216 Option C

8. P(Different digits) = 6C1*5C1*4C1/63 = 120/216 = 5/9 Option C

9. P(2same, 1 different) = 3C2*6C1*1*5C1/63 = 90/216 = 5/12 Option B

10. AB sitting together = (5 – 2 + 1)! * 2! = 48


Total cases = 5! = 120
P(AB are not sitting together) = 1 – 48/120 = 72/120 = 0.60 Option D

11. Probability = 12C3*9C4*5C1*4C4*1/512 = (220*126*5)/512 = 5544/9765625


Option D

12. Probability = 5!*4! / 9! = 24/3024 = 1/126 Option A

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CA FOUNDATION STATISTICS

13. Probability = (N – 2 + 1)!*2! / N! = 2/N Option A

14. P(A) = 7/9, P(B) = 5/12


P(at least one shall occur) = (7/9*7/12) + (2/9*5/12) + (7/9 * 5/12) = 94/108 =
47/54 Option D

15. P(girl with blue eyes) = 10/50 = 1/5 = 0.20


P(not a girl with blue eyes) = 1 – 0.20 = 0.80 Option D

16. P(taken both test) = 4/5*4/5 = 16/25


P(missed at least one test) = 1 – 16/25 = 9/25 Option D

17. Let n = 6k, where k Є N


P(divisible by 2) = 3k/6k = ½
P(divisible by 3) = 2k/6k = 1/3
P(divisible by 6) = k/6k = 1/6
We see that ½ * 1/3 = 1/6
Thus, n should be multiple of 6. Out of options given 96 is divisible by 6. Option A

18. P(same color) = (2/4*2/6) + (2/4*4/6) = 12/24 = ½ = 0.50 Option B

19. P(White) = ½ [2/4 + 2/6] = ½ * 2 * 10/24 = 5/12 Option A

20. P(all remain alive) = 0.8*0.6*0.3 = 0.144


P(2 of them remain alive) = (0.8*0.6*0.7) + (0.8*0.4*0.3) + (0.2*0.6*0.3) = 0.468
P(At least 2 remain alive) = 0.144 + 0.468 = 0.612 Option C

21. P(White) = 5/9*4/11 + 4/9*3/11 = 20/99 + 12/99 = 32/99 Option D

22. P(None hit the target) = 0.5*0.4*0.2 = 0.04


P(at least one hits the target) = 1 – 0.04 = 0.96 Option A

23. P(Not selected) = 4/5 * ¾ * 5/6 = ½


P( selected for at least one post) = 1 – ½ = ½ = 0.50 Option C
24. P(All posts) = 1/5 * ¼ * 1/6 = 1/120
P( for 2 posts) = (1/5*1/4*5/6) + (1/5*3/4*1/6) + (4/5*1/4*1/6) = 12/120

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CA FOUNDATION STATISTICS

P( at least two posts) = 1/120 + 12/120 = 13/120 Option B

25. P(Red) = 3/8*5/11 + 5/8*4/11 = 15/88 + 20/88 = 35/88 Option A

26. P(Win) = 0.7*0.3 + 0.3*0.4 = 0.21 + 0.12 = 0.33 Option C

27. P(TV owner) = (27+20+18+10)/125 = 75/125 = 0.60 Option B

28. Required probability = 27/(27+18) = 27/45 = 0.60 Option C

29. P(TV/Telephone) = (27+18)/(27+18+18+12) = 45/75 = 0.60 Option D

30. P(ownership of TV) = 75/125 = 0.6


P(Telephone) = 75/125 = 0.6
P(TV and Telephone) = 45/125 = 0.36
Now 0.6 * 0.6 = 0.36
Option B

31. P(Wages less than 200) = 101C2/500C2 = 5050/124750 = 101/2495 Option B

32. P(Wages > = 300) = 66C2 / 500C2 = 2145/124750 = 429/24950 Option C

33. P(200 < Wages < 300) = C2 / 500C2 = 55278/124750 = 27639/62375 Option B
333

34. P(1 defective) = 1/1003 [4*95*90 + 96*5*90 + 96*95*10] =


(34200+43200+91200)/106 = 0.1686 Option C

35. P(no defective) = 0.96*0.95*0.90 = 0.8208


P(at least one defective) = 1 – 0.8208 = 0.1792 Option D

36. P(S = 10,11,12 / 5 on first dice) = 2/36 / 6/36 = 1/3 = 0.33 Option D

37. P(no defects) = 0.95 * 0.80 * 0.90 = 0.684 = 171/250


P(defective) = 1 – 171/250 = 79/250 Option A
38. P(W) = 8C4 / 13C4 = 70/715 = 14/143
Odds against = (143 – 14) : 14 = 129 : 14 Option A

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CA FOUNDATION STATISTICS

39. P(B) = 5C4 / 13C4 = 5/715 = 1/143


Odds Favor = 1 : (143 – 1) = 1 : 142 Option A

40. (2W 2B) = 8C2*5C2/13C4 = 280/715 = 56/143


Odds Favor = 56 : (143 – 56) = 56 : 87 Option B

41. (1W, 3B) = 8C1*5C3/13C4 = 80/715 = 16/143


Odds Against = (143 – 16) : 16 = 127 : 16 Option D

42. (1B, 3W) = 5C1*8C3/13C4 = 280/715 = 56/143


Odds Favor = 56 : (143 – 56) = 56 : 87 Option A

43. P(1 or 6) = 2/6 = 1/3


Odds against = (3 – 1) : 1 = 2 : 1 Option C

44. P(At least one) = 1 – (0.20 * 0.30) = 1 – 0.06 = 0.94 Option D

45. P(at least one head) = 1 – (1/2)n = 0.875 ∴ 0.125 = (1/2)n ∴ 2n = 8. ∴ n = 3.


Option C

46. P(all 4 kings) = 4C4/52C4 = 1/270725 Option D

47. P(at least one head) = 1 – 1/8 = 7/8 Option D

48. P(exactly one tail) = 3C1/23 = 3/8 Option B

49. Probability = C3/16C3 * 6C3/13C3 = 120/560 * 20/286 = 15/1001 Option D


10

50. Probability = 6C4/15C4 * 9C4/11C4 = 15/1365 * 126/330 = 1/91*21/55 = 3/715


Option B

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CA FOUNDATION STATISTICS

RANDOM VARIABLE
Theory of Expectation - THEORY

A. RANDOM VARIABLES

Definition of Random Variables or Stochastic Variable


1. A variable whose value is determined by the outcome of a random experiment
is called a random variable.

2. In other words, a random variable “x” is a real valued function defined on a


sample space “S” of a random experiment such that for each point ‘x’ on the
sample space f(x) = probability of the occurrence of the event represented by x.

3. Random Variables are also known as Chance Variables

e.g. If we toss 3 coins then S = {HHH, HHT, HTH, HTT, THH, THT, TTH, TTT}.

If ‘X’ denotes the number of heads obtained then ‘x’ assumes the following
values with the corresponding probabilities.


X 0 1 2 3
P(x) 1/8 3/8 3/8 1/8

These values of ‘x’ {0,1,2,3} are called the values of the random variables
which are the outcomes of a random experiment.

4. Random Variables can be divided into the following two categories. They are
a. Discrete Random Variable
b. Continuous Random Variable

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CA FOUNDATION STATISTICS

A. Discrete Random Variable


Definition : If a variable can assume only discrete set of values i.e. a finite
set of values or countably infinite set of values then it is called a Discrete
Random Variable. In other words, discrete random variable can assume only
whole numbers. (0, 1, 2, 3...........) e.g. In a roll of a die the random variable x
assumes values {1, 2, 3, 4, 5, 6}, these are discrete random variables.

B. Continuous Random Variables


Definition : If a random variable can assume an uncountably infinite number
of values or all real numbers in a given interval is called Continuous Random
Variable. E.g. height or weight of a person is an example of continuous random
variable.

5. Concept of Probability Function of a Random Variable


A. For a discrete random variable, the probability function f(x) = P(X = xi) is called
Probability Mass Function (p. m. f.) of a discrete random variable ‘x’ which
satisfies the following two conditions (i) f(x) ≥ 0 (ii) ∑f(x) = 1

B. If ‘x’ is a continuous random variable the probability function f(x) is called


Probability Density Function (p. d. f.) which has the following two properties
(i) f(x) ≥ 0
(ii) where a ≤ x ≤ b is the range of ‘x’. Since the continuous random
variable can assume any real value, therefore Random Variable can be
any real number.

C. For a Continuous Random Variable, the probability of occurrence of any specific


value is 0 because for a continuous variable, probability are associated only
with intervals of numbers.

B. MATHEMATICAL EXPECTATION OR EXPECTED VALUE OR MEAN


Definition of Mathematical Expectation or Expected value or Expectation of
Random Variable “X”
Let x1, x2, x3 ..... xn be a set of n values of a variable “X” with the corresponding
probabilities of occurrences p1, p2, p3, ....pn then the mathematical expectation
or Expectation or Expected value of random variable “X” is given by
E(x) = x1p1 + x2p2 + .... + xnpn =

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CA FOUNDATION STATISTICS

E.g. Calculation of Expectation of ‘x’ (where ‘x’ are the random variables
generated as a result of throwing an unbiased die)

X P XP
1 (x1) 1/6 (p1) 1/6 (x1p1)
2 (x2) 1/6 (p2) 2/6 (x2p2)
3 (x3) 1/6 (p3) 3/6 (x3p3)
4 (x4) 1/6 (p4) 4/6 (x4p4)
5 (x5) 1/6 (p5) 5/6 (x5p5)
6 (x6) 1/6 (p6) 6/6 (x6p6)

Therefore E(x) = ∑xp = 21/6 = 3.5 i.e.

Properties of Mathematical Expectation


1. E(x) = = mean of random variable ‘x’.

2. E(x) can assume any real number since ‘x’ can assume any real value.

3. If all the value of the random variable ‘x’ are equal then E(x) will be equal to
constant. i.e. E(c) = c

4. E(x ± y) = E(x) ± E(y)

5. E(xy) = E(x) E(y) provided x and y are independent

6. E(cx) = c. E(x) e.g. E(5x) = 5 E(x)

7. E(a ± bx) = a ± bE(x)


e.g. given that E(x) = 5 find E(2 -3x)?
E(2 – 3x) = 2 – 3 E(x)
= 2 – 3 (5) = -13

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8. E(ax ± by) = aE(x) ± bE(y)


e.g. given that E(x) = 3 and E(y) = 4 find E(7x + 9y)?
E(7x + 9y) = 7E(x) + 9E(y) = 7 (3) + 9 (4) = 21 + 36 = 57

9. E(x - )=0
Proof
E(x - ) = E(x) – E( ) = - (since E(x) = = mean is constant) = 0

10. Variance and Standard Deviation of a Random Variable X

A. Definition : Variance of a random variable X is defined as the Arithmetic Mean


of the Square of Deviations taken about Arithmetic Mean i.e.

B. Symbolically
= A. M of (x – )2
= expectation of (x – )2 [Since expectation = A. M]

Where = E(X) = Mean of the random variable X

C. or variance of x is also denoted by Var (X) or V(X) and V(X) = E(x – )2 = E(x2)
– [E(x)]2
Proof :

D. Thus V(X) = E(x2) – [E(x)]2 = ∑x2p – (∑xp)2

E. Standard Deviation of x i.e. S.D. (X) = = =

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11. Properties of Variance and Standard Deviation

1. When all the value of the variable are equal :


Variance = 0 and S.D. = 0 i.e. V(C) = 0 where C is any constant.
e.g. V(2) = 0

2. Var(aX) = a2V(X)
e.g. Given V(X) = 3
Calculate V(3X)
Solution :
V(3X) = 9V(X) = 9(3) = 27

3. Var(a bx) = b2 V(X) [ Var(a) = 0]


e.g. Given V(X) = 2
Find : (i) V(3 + 2x), (ii) V(2 – 3x)
Solution : (i) (3 + 2x) = 4V(X) = 4 (2) = 8, (ii) V(2 – 3x) = 9V(X) = 9 (2) = 18

4. Var (aX bY) = a2 V(X) + b2 V(Y)


e.g. Given V(X) = 4 and V(Y) = 9 Find
Find : (i) V(7X + 4Y), (ii) V(2X + 3Y)
Solution:
(i) V(7X – 4Y) = 49V(X) + 16V(Y) (ii) V(2X + 3Y) = 4V(X)+ 9V(Y)
= 49 × 4 + 16 × 9 = 4×4+9×9
= 196 + 144 = 340 = 16 + 81 = 97

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CLASSWORK SECTION

1. Probability mass function is always:


a)
0 b) Greater than 0
c) Greater than equal to 0 d) Less than 0

2. The sum of probability mass function is equal to:


a) 0 b) 1 c) – 1 d) None of the above

3. When X is a continuous function, f(X) is called:


a) Probability mass function b) Probability density function
c) Both a) and b) d) None of the above

4. Which of the following set of function defines a probability space on s = a, b, c.


a) P(a) = 1/3, P(b) = ½, P(c) = ¼ b) P(a) = 1/3, P(b) = 1/6, P(c) = ¼
c) P(a) = P(b) = 2/3, P(c) = ¼ d) None of the above

5. If P(a) = 0, P(b) = 1/3, P(c) = 2/3, then s = a, b, c is a probability space.


a)
True b) False
c) Both true and false d) None of the above

6. If a random variable x assumes the values x1, x2, x3, x4 with corresponding probabilities
p1, p2, p3, p4, then the expected value of x is:
a) p1 + p2 + p3 + p4 b) x1p1 + x2p2 + x3p3 + x4p4
c) x1 + x2 + x3 + x4 d) None of the above

7. For discrete random variable x, E(x) is defined as the sum of products of the different
values and the corresponding probabilities.
a) True b) False c) Both d) None

8. For a probability distribution, ________ is expected value of x.


a) Median b) Mean c) Mode d) None of the above

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9. If x and y are independent, then


a) E(xy) = E(x) x E(y) b) E(xy) = E(x) + E(y)
c) E(x + y) = E(x) – E(y) d) E(x – y) = E(x) + E(y)

10. When expected value is negative, the result is:


a)
Favorable b) Unfavorable
c) Both a) and b) d) None of the above

11. _______ is the expected value of (x – m)2, where m is the mean of the distribution.
a) Median b) Variance c) Standard deviation d) Mode

12. Variance of a random variable x is given by


a) b)
c) d) Both a) and b) above

13. The probability distribution of x is given below:


Value of x: 1 0 Total
Probability: p 1 – p 1
What is the mean?
a) p b) 1 – p c) 0 d) 1
A random variable x has the following probability distribution:
X : 4 5 6 8
Probability : 0.1 0.3 0.4 0.2

14. Find the expectation of the random variable x.


a) 4.58 b) 5.01 c) 5.9 d) 6.4

15. What is the standard deviation of the random variable x.


a) 5.99 b) 1.01 c) 2.25 d) 1.22

16. A die is thrown at random. The expectation of the number on it is:


a) 1.50 b) 2.50 c) 3.50 d) None of the above

17. Let X be a random variable assuming values -3, 6 and 9 with probabilities 1/6, ½
and 1/3 respectively. Then find the value of E(X), E(X2) and E(2X+1)2
a) 5.5, 46.5, 209 b) 6.5, 45.5, 207 c) 6, 40, 200 d) None of these

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18. A person tosses a coin once and is to receive Rs.4 for head and is to loss Rs.2 for tail.
Find the expectation and variance of his gain?
a) 1, 8 b) 1, 9 c) 2, 9 d) 2, 8

19. A player tossed two coins. If two heads show he wins Rs. 4. If one head shows he
wins Rs. 2, but if two tails show he pays Rs. 3 as penalty. The expected value of the
game to him (in rupees) is:
a) 1.25 b) 3.25 c) 4.25 d) 2.25

20. A player tosses 3 coins. He wins Rs. 16, if 3 heads appear, Rs.8 if two heads appear,
Rs. 4 if one head appears and Rs. 2 if no heads appear. Find his expected amount of
winning.
a) Rs. 5 b) Rs. 8.75 c) Rs. 6.75 d) Rs. 10
21. A player tosses three fair coins. He wins Rs. 12 if three tails occur, Rs. 7 if two tails
occur and Rs. 2 if only one tail occurs. If the game is fair, how much should he win
or lose in case no tail occurs?
a) Loss of Rs. 39 b) Income of Rs. 39
c) Neither Income nor Loss d) None of the above

22. A throws a coin 3 times. If he gets a head all the three times he is to get a prize of
Rs. 160. The entry fee for the game is Rs. 16. The mathematical expectation of A is:
a) 4 b) 7 c) 9 d) 10

23. If a player plays a game of chance where he can win Rs. 5000 with probability 0.6,
win Rs. 2500 with probability 0.3 and lose Rs. 15000 with probability 0.1, what is
his expected gain in one play of the game?
a) 2250 b) 2350 c) 2650 d) 2450

24. In a business venture, a man can make a profit of Rs. 2000 with a probability of 0.4
or a loss of Rs. 1000 with a probability of 0.6. What is his expected profit?
a) 100 b) – 100 c) – 200 d) 200

25. If it rains a taxi driver can earn Rs. 100 per day if it is fair, he can lose Rs. 10 per day.
If the probability of rain is 0.4 what is his expected gain?
a) 60 b) 34 c) – 6 d) – 40

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26. A man runs an ice-cream parlor in a holiday resort. If the summer is mild he can
sell 2500 cups of ice cream; if it is hot, he can sell 4000 cups; if it is very hot, he can
sell 5000 cups. It is known that the probability, in any year, for the summer to be
mild is 1/7 and hot is 4/7. A cup of ice cream cost Rs. 2 and sells for Rs. 3.50. What
is his expectation?
a) 6100 b) 6107 c) 5489 d) 5987

27. The probability that a boy fishing at a particular place will catch 5, 6, 7, 8 fish are
0.4, 0.3, 0.2 and 0.1 respectively. What is the expected number of fish caught?
a) 3 b) 4 c) 5 d) 6

28. The probability that there is at least one error in an accounts statement prepared
by A is 0.2 and for B and C it is 0.25 and 0.4 respectively. A, B and C prepared 10,
16 and 20 statements respectively. Find the expected number of correct statements
in all
a) 32 b) 33 c) 34 d) None of the above

29. A man draws 2 balls from a bag containing 3 white and 6 black balls. If he is
to receive Rs. 14 for every white ball and Rs. 7 for every black ball; what is his
expectation?
a) 18.67 b) 19.25 c) 20.25 d) 25.19

30. A box contains 15 items of which 5 are defective. A man selects 3 items at random.
What is the expected number of defective items he has drawn?
a) 3 b) 2 c) 1 d) 0

31. Three items are drawn at random from a box containing 2 defective and 6 non
defective items. The expected number of non-defective items drawn is:
a) 4.25 b) 3.25 c) 2.25 d) 1.25

32. A number is chosen at random from the set 1, 2, 3, ...., 100 and another number
is chosen at random from the set 1, 2, 3 ..., 50. What is the expected value of their
product?
a) 5151 b) 5151/4 c) 5151/2 d) None of the above

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33. If a person gains or loses an amount equal to the number appearing when a
balanced die is rolled once, according to whether the number is even or odd, how
much money can he expect per gain on long run?
a) 0.50 b) 0.75 c) 1 d) 2

34. In a random throw of 2 dice is the expectation of the sum of the points on them is :
a) 2.50 b) 3.50 c) 5.00 d) 7.00

35. A and B play for a prize of Rs.99. The prize is to be won by a player who first throw a
“3” with one dice. A first throws and if he fails, B throws and if he fails again throws
and so on. Find their respective expectation. (A’s expectation and B’s expectation)
a) 54 and 45 respectively b) 60 and 39 respectively
c) 45 and 54 respectively d) 39 and 60 respectively

36. A Bag Contains 2 white balls 3 black balls, four persons A,B,C,D in that order each
draws one balls and does not replace it. The first to draw a while balls receives Rs.
10. Determine their expectations.
a) 4, 3, 2, 1 respectively b) 3, 4, 2, 1 respectively
c) 4, 3, 1, 2 respectively d) 2, 3, 2, 1 respectively

37. A random variable X has the following distribution:



X 1 2 3 4
P(X = x) c 2c 3c 4c

The value of c is:


a) 0.1 b) 0.2 c) 0.3 d) 0.4

A random variable x has the following probability distribution:


X: 0 1 2 3 4 5 6 7
P(x): 0 2k 3k k 2k k2 7k2 2k2+k

38. What is the value of k?


a) 1 / 2 b) 1 / 8 c) 1 / 9 d) 1 / 10

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39. What is the value of P(x < 6)?


a) 0.19 b) 0.80 c) 0.81 d) 0.91

40. What is the value of P(0 < x < 5)?


a) 0.19 b) 0.29 c) 0.80 d) 0.91

A probability mass function for a random variable x is given as:

41. 6 times the value of k will be:


a) 2 b) 1 c) 0.5 d) None of the above

42. What is the expectation of the random variable x?


a) 1.75 b) 3.75 c) 3.25 d) 3.50

43. The standard deviation of the random variable x will be:


a) 1.00 b) 1.21 c) 1.69 d) 1.71

44. If X and Y are two independent variables with means 50 and 120 and variances 10
and 12 respectively. Then the expectation of Z = 4X + 3Y is:
a) 360 b) 460 c) 560 d) 660

45. If x and y are random variables having expected values as 4.5 and 2.5 respectively,
then the expected value of (x - y) is
a) 2 b) 7 c) 6 d) 0

46. If variance of a random variable x is 23, then what is the variance of 2x + 10 ?


a) 56 b) 33 c) 46 d) 92

47. If two random variable x and y are related as y = – 3x + 4 and standard deviation
of x is 2, then the standard deviation of y is
a) -6 b) 6 c) 18 d) 3.50

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48. The expected value of sum of points on n unbiased dice is:

a) b)

c) d)

49. A packet of 10 electronic components are known to include 3 defectives. If 4


components are selected from the packet at random, what is the expected value of
the number of defectives?
a) 1.20 b) 1.21 c) 1.72 d) 1.69

50. The probability that there is at least one error in an account statement prepared by
A, B and C are 0.20, 0.30 and 0.10 respectively. If A, B and C prepare 60, 70 and 90
such statements, then the expected number of correct statements is:
a) 178 b) 170 c) 176 d) 180

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CA FOUNDATION STATISTICS

HOMEWORK SECTION

1. There are six slips in a box and numbers 1, 1, 2, 2, 3, 3 are written on these slips.
Two slips are taken at random from the box. The expected values of the sum of
numbers on the two slips is:
a) 3 b) 5 c) 4 d) 7

2. The probability that there is at least one error in an account statement prepared by A
is 0.3 and for B and C, they are 0.4 and 0.45 respectively. A, B and C prepared 20, 10
and 40 statements respectively. The expected number of correct statements in all is:
a) 42 b) 24 c) 25 d) 52

3. Ms. G plays a game of tossing a dice. If the number is less than 3, she is getting Rs.
X, otherwise he has to pay Rs. 100. If the game is fair, find X.
a) 100 b) 150 c) 250 d) 200

4. A box contains 12 electric lamps of which 5 are defectives. A man selects three
lamps at random, what is the expected number of defective lamps in his selection?
a) 1.05 b) 1.25 c) 1.33 d) 2.50

5. Daily demand for a product X is having the following probability distribution:


Demand 1 2 3 4 5 6
Probability 0.10 0.15 0.20 0.25 0.18 0.12
Determine the variance of the demand.
a) 2.19 b) 2.22 c) 2.33 d) 2.54

6. An urn contains 6 white and 4 black balls. 3 balls are drawn without replacement.
What is the expected number of black balls that will be obtained?
a) 1/5 b) 4/5 c) 6/5 d) 7/5

7. A random variable X has the following probability distribution:


X -2 3 1
P(X=x) 1/3 ½ 1/6
Find E(X2) and E(2X + 5)
a) 5 and 7 respectively b) 6 and 7 respectively
c) 7 and 7 respectively d) 7 and 6 respectively

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CA FOUNDATION STATISTICS

8. The probability density function is:


f(x) = 1 of 0 < x < 1
= 0 otherwise
Find E(x)
a) 0 b) 1 c) – 1 d) 1/2

9. A random variable X has the following probability distribution:


X 0
1 2 3
P(X) 0 2K 3K K
Find the value of P (X < 3)
a) 1/6 b) 5/6 c) 1/3 d) 2/3

10. E(13X + 9) = ?
a) E(13X) b) 13 E(X) + 9 c) 13 E(X) d) 13X + E(9)

11. A die is thrown once. What is the mathematical expectation of the number on the
die?
a) 1.67 b) 3.50 c) 2.50 d) 2.67

12. Two unbiased dice are thrown. The expected value of the sum of numbers on the
upper side is:
a) 3.5 b) 7 c) 10.5 d) 12

13. A player tosses two fair coins, he wins Rs. 5 if 2 heads appear, Rs. 2 if one head
appear and Re. 1 if no head occurs. Find his expected amount of winning.
a) Rs. 5.00 b) Rs. 2.50 c) Rs. 1.25 d) Rs. 10.00

14. Find the expected value of the following probability distribution:


X -20 -10 30 75 80
P(X) 3/20 1/5 0.5 1/10
1/20
a) 20.5 b) 21.5 c) 52.2 d) 24.5

15. A player tosses 3 fair coins. He wins Rs. 5 if 3 heads appear, Rs. 3 if two head
appears, Re. 1 if one head occurs. On the other hand, he losses Rs. 15 if three tail
occur. Find the expected gain of the player.
a) 0.15 b) 0.25 c) 0.35 d) 0.55

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CA FOUNDATION STATISTICS

16. Let the distribution function of a random variable X be F(X) = P(X ≤ X). Then F(5) –
F(2) is:
a) P (2 < X < 5) b) P (2 < X ≤ 5)
c) P (2 ≤ X ≤ 5) d) P (2 ≤ X < 5)

17. A discrete random variable X takes three values -1, 2 and 3 with probabilities:
P(- 1) = 1/3, P(2) = 1/3 and P(3) = 1/3, then E(|X|) is:
a) 1 b) 2 c) 3 d) 3/2

18. An unbiased coin is tossed three times. The expected value of the number of heads
is:
a) 1.0 b) 1.5 c) 2.0 d) 2.5

19. There are 8 bolts in a packet of which 2 are defective. If 2 bolts are taken at random,
find the expected number of defective bolts.
a) 0.50 b) 1.00 c) 1.50 d) 2.00

20. There are 5 identical balls in a bag numbered 1, 1, 2, 2, 2. Two balls are selected
at random from the bag. Find the expectation of the total of the numbers on the
selected balls.
a) 3.00 b) 3.2 c) 5.40 d) 7.40

21. There are 100 tickets in a lottery of Re. 1 each. There is only one ticket in the lottery
bearing a price of Rs. 80. A person purchases 1 ticket. What is his expectation?
a) – 0.20 b) – 0.40 c) 2.00 d) 0.20

22. A person takes an insurance of Rs. 1000 and pays premium of Rs. 20. The probability
that any person of his age group dies within a year is 0.01. What is the expected
gain of the insurance company?
a) Rs. 20 b) Rs. 14 c) Rs. 12 d) Rs. 10

23. Two tickets are taken at random from 5 tickets numbered 1, 2, 3, 4, 5. What is the
expected value of the sum obtained on the two tickets?
a) 5 b) 6 c) 7 d) 36

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24. There are 3 black and 2 white balls in a box. Two balls are taken from it. Rs. 24 is
given for each black ball drawn. What amount should be charged for each white
ball so that the game is fair?
a) Rs. 33 b) Rs. 36 c) Rs. 54 d) Rs. 74

25. There are 4 black and 2 white balls in a box. Two balls are taken at random from
it. If a person receives Rs. 4 for each white ball and loses Rs. 2 for each black ball
drawn, find the mathematical expectation of the amount received by him.
a) – 3 b) 0 c) 1 d) 5

26. There are 5 white and 3 black balls in a box. Three balls are taken at random from
the box. Find the expected number of black balls.
a) 2 / 3 b) 9/8 c) 2 d) 3

27. Two coins are tossed simultaneously. A person receives Rs. 8 for each head and
loses Rs. 10 for each tail. What is the expected value of the amount gained by him?
a) – 2.00 b) 2.00 c) 3.00 d) –3.00

28. Four coins are tossed simultaneously. What is the expected number of heads?
a) 1 b) 2 c) 2.5 d) 3

29. The probability distribution of a random variable is as follows:


X 15 16 17 18 19 20
P(X) 0.04 0.19 3N 0.26 N 0.07
Find the value of “N”.
a) 0.10 b) 0.11 c) 0.14 d) 0.15

30. The probability distribution of a random variable is as follows:


X 2 3 4 5 6 7 8 9 10
P(X) 0.05 0.10 0.30 0.20 0.05 0.10 0.05 0.10 0.05
Find E(X).
a) 1.90 b) 3.60 c) 5.40 d) 6.50

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HOMEWORK SOLUTION

1. S = (1,1) (1,2) (1,3) (2,2) (2,3) (3,3)


Sum = 2, 3, 4, 4, 5, 6 – Each with probability 1/6
E(Sum) = 1/6 (2 + 3 + 4 + 4 + 5 + 6) = 1/6 * 24 = 4. Option c
2. E(Correct Statements) = 20(1 – 0.3) + 10(1 – 0.4) + 40(1 – 0.45) = 14+6+22 = 42.
Option b

3. P(X<3) = 2/6 = 1/3


If game is fair E(Gain) = 0
Thus, 0 = 1/3 * X + 2/3 * (- 100)
X – 200 = 0
X = 200. Option d

4. Expected Number of Defective Lamps:

Number of Defectives (X) Probability (P) PX


0 5C0 * 7C3 / 12C3 = 35/220 0
1 5C1 * 7C2 / 12C3 = 105/220 105/220
2 5C2 * 7C1 / 12C3 = 70/220 140/220
3 5C3 * 7C0 / 12C3 = 10/220 30/220
275/220

E(X) = 275/220 = 1.25. Option b

5. Variance of the Demand:

X P XP X2P
1 0.10 0.10 0.10
2 0.15 0.30 0.60
3 0.20 0.60 1.80
4 0.25 1.00 4.00
5 0.18 0.90 4.50
6 0.12 0.72 4.32
3.62 15.32

V(X) = E(X2) – [E(X)]2 = 15.32 – (3.62)2 = 15.32 – 13.1044 = 2.2156 = 2.22. Option b

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CA FOUNDATION STATISTICS

6. Expected Number of Black Balls:

Number of Black Balls Probability (P) PX


(X)
0 4C0 * 6C3 / 10C3 = 20/120 0
1 4C1 * 6C2 / 10C3 = 60/120 60/120
2 4C2 * 6C1 / 10C3 = 36/120 72/120
3 4C3 * 6C0 / 10C3 = 4/120 12/120
144/120

E(X) = 144/120 = 6/5. Option c

7. E(X) = -2 * 1/3 + 3* ½ + 1*1/6 = -2/3 + 3/2 + 1/6 = 1


E(X2) = 4*1/3 + 9*1/2 + 1*1/6 = 4/3 + 9/2 + 1/6 = 6
E(2X + 5) = 2 E(X) + 5 = 2*1 + 5 = 7 Option B

8. E(X) = . Option d

9. 0 + 2K + 3K + K = 1
6K = 1
K = 1/6
P(X < 3) = P(X = 0) + P(X = 1) + P(X = 2) = 5K = 5/6. Option b

10. E(13X + 9) = E(13X) + E(9) = 13.E(X) + 9. Option b

11. E(X) = 1/6 (1 + 2 + 3 + 4 + 5 +6) = 21/6 = 3.50. Option b

12. E(X) = 1/36 (2*1 + 3*2 + 4*3 + 5*4 + 6*5 + 7*6 + 8*5 + 9*4 + 10*3 + 11*2 + 12*1) =
252/36 = 7. Option b

13. E(Gain) = (5 * 1 / 4) + (2 * 2 / 4) + (1 * 1 / 4) = (5 + 4 + 1)/4 = 10/4 = 2.50. Option b

14. E(X) = (-20 * 3/20) + (-10 * 1/5) + (30 * 0.5) + (75 * 1/10) + (80 * 1/20) = -3 – 2 + 15
+ 7.5 + 4 = 21.5. Option b

15. E(Gain) = (5 * 1/8) + (3 * 3/8) + (1 * 3/8) + (- 15 * 1/8) = 1/8(5 + 9 + 3 – 15) = 2/8 =


0.25. Option b

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CA FOUNDATION STATISTICS

16. F(5) – F(2) = P( X ≤ 5) – P(X ≤ 2 ) = P(2 < X ≤ 5). Option b

17. E(|X|) = (|-1|*1/3) + (|2|*1/3) + (|3|*1/3) = 1 / 3 + 2 / 3 + 3 / 3 = 6/3 = 2. Option b

18. E(Heads) = (0 * 1/8) + (1 * 3/8) + (2 * 3/8) + (3 * 1/8) = 1/8(0+3+6+3) = 12/8 = 1.5.


Option b

19. Expected Number of Defective Bolts:

Number of Defectives (X) Probability (P) PX


0 2C0 * 6C2 / 8C2 = 15/28 0
1 2C1 * 6C1 / 8C2 = 12/28 12/28
2 2C2 * 6C0 / 8C2 = 1/28 2/28
14/28

E(X) = 14/28 = 0.50. Option a

20. SS = {(1,1) (1,2) (1,2) (1,2) (1,2) (1,2) (1,2) (2,2) (2,2) (2,2)}
Sum = 2, 3, 4 – With probability 1 10, 6 10, 3 10 respectively.
E(X) = 2 x 1 + 3 x 6 + 4 x 3 = 2 + 18 + 12 = 3.2 . Option b
10 10 10 10

21. E(X) = (80 * 1/100) – 1 = 0.80 – 1 = - 0.20. Option a

22. E(Gain) = 20 – (1000 * 0.01) = 20 – 10 = 10. Option d

23. SS = (11) (12) (13) (14) (15) (22) (23) (24) (25) (33) (34) (35) (44) (45) (55)
Sum = 2, 3, 4, 5, 6, 4, 5, 6, 7, 6, 7, 8, 8, 9, 10 – With probability 1/15 each
E(Sum) = 1/15 (2+3+4+5+6+4+5+6+7+6+7+8+8+9+10) = 90/15 = 6. Option b

24. Fair Game – E(X) = 0


(48 * 3C2/5C2) + (24 – W)(3C1 * 2C1 / 5C2) – 2W * 2C2/5C2 = 0
(48*3/10) + (24 – W)(6/10) = 2W/10
144 + 144 – 6W = 2W
8W = 288
W = 288/8 = 36. Option b

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25. Expected Gain:

Balls X P XP
Two White 2*4=8 2C2 / 6C2 = 1/15 8/15
1 White 1 Black 4–2=2 4C1 * 2C1 / 6C2 = 8/15 16/15
Two Black 2 * -2 = - 4 4C2 / 6C2 = 6/15 -24/15
0

E(x) = ∑xp = 0. Hence, Option b

26. Expected Number of Black Balls:

Number of Black Balls (X) Probability (P) PX


0 5C3 * 3C0 / 8C3 = 10/56 0
1 5C2 * 3C1 / 8C3 = 30/56 30/56
2 5C1 * 3C2 / 8C3 = 15/56 30/56
3 5C0 * 3C3 / 8C3 = 1/56 3/56
63/56

E(X) = 63/56 = 9/8. Option b

27. E(Gain) = (16 * ¼) + (8 – 10)*2/4 + (- 20 * ¼) = ¼ (16 – 4 – 20) = - 2.00. Option a

28. E(Heads) = (0 * 1/16) + (1 * 4/16) + (2 * 6/16) + (3 * 4/16) + (4 * 1/16) =


1/16(0+4+12+12+4) = 32/16 = 2. Option b

29. 0.04 + 0.19 + 3N + 0.26 + N + 0.07 = 1


4N + 0.56 = 1
4N = 0.44
N = 0.11. Option b

30. E(X) = (2*0.05) + (3*0.10) + (4*0.30) + (5*0.20) + (6*0.05) + (7*0.10) + (8*0.05) +


(9*0.10) + (10*0.05) = 0.10 + 0.30 + 1.20 + 1.00 + 0.30 + 0.70 + 0.40 + 0.90 + 0.50
= 5.40. Option c

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SELF ASSESSMENT TEST 11


20 Marks

1. Values of a random variable are:


a) Natural numbers
b) Real numbers
c) Always positive real numbers
d) Always positive numbers

2. An unbiased coin is tossed three times. Find the expected value of the number of
heads.
a) 1.00 b) 1.50 c) 1.67 d) 2.50

3. Expected value of a random variable:


a) Is always positive b) May be positive, zero or negative
c) May be positive or negative d) Can never be zero

4. An unbiased coin is tossed three times. Find the standard deviation of the number
of heads.
a) 0.67 b) 0.87 c) 0.97 d) 1.00

5. A random variable has the following probability distribution:


X 4 5 7 8 10
P(X) 0.15 0.20 0.40 0.15 0.10
Find E[X – E(X)]2
a) 1.04 b) 3.04 c) 2.04 d) 9.62

6. If all the values taken by a random variable are equal, then:


a) Its standard deviation is zero
b) Its standard deviation is a real number
c) Its standard deviation is positive
d) Its expected value is zero

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7. A random variable has the following probability distribution:


X 4 5 7 8 10
P(X) 0.15 0.20 0.40 0.15 0.10
Find V(3X – 4)
a) 27.36 b) 25.64 c) 44.34 d) 1.08

8. In a business venture, a man make a profit of Rs. 50,000 or incur a loss of Rs. 20,000.
The probabilities of making profit or incurring loss, from the past experience, are
known to be 0.75 and 0.25 respectively. What is his expected profit?
a) Rs. 50,000 b) Rs. 32,500 c) Rs. 25,300 d) Rs. 52,300

9. A box contains 12 electric lamps of which 5 are defectives. A man selects three
lamps at random. What is the expected number of defective lamps in his selection?
a) 1.25 b) 2.25 c) 1.55 d) 2.55

10. G draws 2 balls from a bag containing 3 white and 5 red balls. She gets Rs. 500 if
she draws a white ball and Rs. 200 if she draws a red ball. What is her expectation?
a) Rs. 400 b) Rs. 625 c) Rs. 225 d) Rs. 465

11. A number is selected at random from a set containing the first 100 natural numbers
and another number is selected at random from another set containing the first 200
natural numbers. What is the expected value of the product?
a) 5075.25 b) 5750.25 c) 7550.75 d) 2575.75

12. A die is thrown repeatedly till a “three” appears. Find the expected number of
throws, if X denotes the probability of getting a “Three” in a throw.
a) X b) X! c) 1/X d) XX

13. If a random variable X assumes the values 0, 1 and 2 with probabilities 0.30, 0.50
and 0.20 respectively, then find its expected value.
a) 0.90 b) 1.00 c) 1.50 d) 2.00

14. If 2X + 3Y + 14 = 0 and V(X) = 6, then find the value of V(Y).


a) 6 b) 8/3 c) 9 d) 3/8

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15. The probability distribution of a random variable is as follows:


X 1 2 4 6 8
P(X) K 2K 3K 5K K
Find the variance of X.
a) 2.10 b) 2.32 c) 2.47 d) 4.41

16. A bag contains 6 white and 4 red balls. If a person draws 2 balls and receives Rs.
10 and Rs. 20 for a white and red balls respectively, then his expected amount is:
a) Rs. 25 b) Rs. 26 c) Rs. 28 d) Rs. 29

For Q. No. 17 - 20
A random variable X had the following probability distribution:
X 0 1 2 3 4 5 6 7
P(X) 0 2K 3K K 2K K2 7K2 2K2+K

17. What is the value of K?


a) 0.06 b) 0.10 c) 0.05 d) 0.12

18. Find P(X < 3)


a) 0.50 b) 0.45 c) 0.60 d) 0.35

19. P (X ≥ 4)
a) 0.50 b) 0.40 c) 0.45 d) 0.55

20. P(2 < X ≤ 5)


a) 0.11 b) 0.21 c) 0.31 d) 0.39

ANSWER KEY

1 2 3 4 5 6 7 8 9 10
B B B B B A A B A B

11 12 13 14 15 16 17 18 19 20
A C A B D C B A B C

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EXPLANATORY
ANSWERS

1. Random variable assumes real values. Option b

2. In case of coins, E(x) = n.p = 3*1/2 = 1.5. Option b

3. E(x) may be negative, positive or zero. Option b

4. In case of coins, V(x) = n.p.q = 3*1/2*1/2 = ¾


Standard deviation = √3/4 = 0.87. Option b

5. ∑X.P(X) = 0.6 + 1 + 2.8 + 1.2 + 1 = 6.6


∑X2.P(X) = 2.4 + 5 + 19.6 + 9.6 + 10 = 46.6
E[X – E(X)]2 = V(X) = ∑X2.P(X) – [∑X.P(X)]2 = 46.6 – (6.6)2 = 46.6 – 43.56 = 3.04
Option b

6. If all the values taken by a random variable are equal, its variance or standard
deviation is zero. Option a

7. ∑X.P(X) = 0.6 + 1 + 2.8 + 1.2 + 1 = 6.6


∑X2.P(X) = 2.4 + 5 + 19.6 + 9.6 + 10 = 46.6
V(X) = ∑X2.P(X) – [∑X.P(X)]2 = 46.6 – (6.6)2 = 46.6 – 43.56 = 3.04
V(3X – 4) = 9.V(X) = 9(3.04) = 27.36
Option a

8. Expected Profit = (50000 * 0.75) + (- 20000 * 0.25) = 37500 – 5000 = 32500


Option b

9. P(0 Defectives) = 7C3/12C3 = 35/220


P(1 Defective) = 7C2*5C1 / 12C3 = 105/220
P(2 Defectives) = 7C1*5C2 / 12C3 = 70/220
P(3 Defectives) = 5C3 / 12C3 = 10/220
Expected Number of defectives = (0*25/220) + (1*105/220) + (2*70/220) + (3*10/220)
= 105/220 + 140/220 + 30/220 = 275/220 = 1.25
Option a

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10. P(2 Whites) = 3C2/8C2 = 3/28


P(1 White 1 Red) = 3C1*5C1/8C2 = 15/28
P(2 Red) = 5C2/8C2 = 10/28
Expectation = (1000 * 3/28) + (700 * 15/28) + (400 * 10/28)
= 3000/28 + 10500/28 + 4000/28 = 17500/28 = 625
Option b

11. E(X) = 1/100 [1 + 2 + 3 +… + 100] = 1/100 [100(101)]/2 = 101/2


E(Y) = 1/200 [1 + 2 + 3 +….+ 200] = 1/200 [200(201)]/2 = 201/2
E(XY) = E(X) . E(Y) = (101 * 201)/4 = 5075.25
Option a

12. P(3 in first throw) = X


P(3 in 2nd throw) = (1 – X)X
P( 3 in 3rd throw) = (1 – X)2X
Expected number of throws = 1(X) + 2(1 – X)X + 3(1 – X)2X + …..n.(1 – X)n-1X + …..
= X [{1 + (1 – X) + (1 – X)2 + (1 – X)3 + …..} {1 + (1 – X) + (1 – X)2 + ….}]
= X [1 / (1 – 1 + X)] [1 / (1 – 1 + X)] = X * 1/ X * 1/X = 1/X
Option c

13. E(x) = (0 * 0.30) + (1 * 0.50) + (2 * 0.20) = 0 + 0.50 + 0.40 = 0.90. Option a

14. 2X + 3Y + 14 = 0
4.V(X) = 9.V(Y)
24 = 9 V(Y)
V(Y) = 24/9 = 8/3
Option b

15. K + 2K + 3K + 5K + K = 12K = 1
K = 1/12
∑X.P(X) = K + 4K + 12K + 30K + 8K = 55K
∑X2.P(X) = K + 8K + 48K + 180K + 64K = 301K
V(X) = 301K – (55K)2 = 25.08 – 20.97 = 4.11
Option d

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16. P(2 Whites) = 6C2/10C2 = 15/45


P(1 White 1 Red) = 6C1*4C1/10C2 = 24/45
P(2 Red) = 4C2/10C2 = 6/45
Expectation = (20 * 15/45) + (30 * 24/45) + (40 * 6/45)
= 300/45 + 720/45 + 240/45 = 1260/45 = 28
Option c

17. 9K + 10K2 = 1; (10K – 1)(K + 1) = 0; K = 1/10 = 0.10. Option b

18. P(X < 3) = 0 + 2K + 3K = 5K = 5 * 0.10 = 0.50. Option a

19. P(X ≥ 4) = 1 – [0 + 2K + 3K + K] = 1 – 6K = 1 – 0.60 = 0.40. Option b

20. P(2 < X ≤ 5) = K + 2K + K2 = 3K + K2 = 3(0.10) + (0.10)2 = 0.30 + 0.01 = 0.31.


Option c

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THEORETICAL DISTRIBUTION

THEORETICAL DISTRIBUTION
(Exist in theory as well as real life)
1. Theoretical Distribution is a distribution where the values of a variable are distributed
according to some definite mathematical laws.

2. In other words, Theoretical Distributions are mathematical models; where the


frequencies/probabilities are calculated by mathematical computation.

3. Theoretical Distribution are also called as Expected Variance Distribution or


Frequency Distribution

THEORETICAL DISTRIBUTION

A. Binomial Distribution (Bernoulli Distribution)


1. The probabilities of ‘x’ number of success or the p.m.f (Probability Mass Function) of
a Binomial Distribution is given by :
P(x) =
where, p = probability of success
q = probability of failure=(1-p)
‘x’= no. of success
And (n –x) = no. of failures
Note 1: Sum of powers of p and q will always add up to ‘n’ irrespective of no. of success.
Note 2: There are(n + 1) possible value of ‘x’ i.e. x = { 0,1,2,3,..... ,n}

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2. This distribution is a discrete probability Distribution where the variable ‘x’ can
assume only discrete values i.e. x = 0, 1, 2, 3,....... n

3. This distribution is derived from a special type of random experiment known as


Bernoulli Experiment or Bernoulli Trials, which has the following characteristics

(i) Each trial must be associated with two mutually exclusive & exhaustive
outcomes – SUCCESS and FAILURE. Usually the probability of success is denoted
by ‘p’ and that of the failure by ‘q’ where q = 1-p and therefore p + q = 1.
(ii) The trials must be independent under identical conditions.

(iii) The number of trial must be finite (countably finite).

(iv) Probability of success and failure remains unchanged throughout the process.

Note 1 : A ‘trial’ is an attempt to produce outcomes which is neither sure nor impossible
in nature.

Note 2 : The conditions mentioned may also be treated as the conditions for Binomial
Distributions.

4. Characteristics or Properties of Binomial Distribution


(i) It is a bi parametric distribution i.e. it has two parameters n & p where
n = no. of trials
p = probability of success.

(ii) Mean of distribution is np.


(iii) Variance = npq
(iv) Mean is greater than variance always i.e. np > npq.
(v) SD =
(vi) Maximum variance is equal to (n/4)
(vii) Binomial Distribution may be Symmetrical or Asymmetrical (i.e. skewed) where
q > p; i.e. P > ½ its positively skewed and when q < p i.e. P > ½ its negatively
skewed.
When q = p = 0.5 skewness is equal to zero. In such a case, the distribution is
said to be symmetrical.

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(viii) Binomial Distribution may be Uni-Modal or Bi-Modal depending on the values


of the parameters n & p.

Case I : When (n + 1).p is not an integer the distribution is uni-modal and the
greatest integer contained in (n+1) p is the value of the mode.
E.g. n = 6; p = 1/3; find modal value.

Solution : (n + 1)p = (6 + 1) x 0.3


= 7 x 0.3 = 2.1 which is not an integer. Hence the given distribution is
unimodal and the value of mode is equal to 2 (Greatest integer integral
value in 2.1)

Case II: When (n + 1)p is an integer; the distribution is bi-modal and the modal
values are (n+1)p and (n+1)p – 1 respectively.
E.g. n = 7 and p = 0.5; find mode or modes.

Solution : (n +1)p = (7 + 1)p


= 8(0.5)
= 4. Which is an integer.
Hence the two modes are :4 & (4 -1) =3

(ix) Additive Property of Binomial Distribution: If ‘x’ and ‘y’ are two independent
binomial variates with parameters(n1,p) and (n2,p) respectively,then x + y will
also follow a binomial distribution with parameters {(n1 + n2), p} Symbolically
the fact is expressed as follows:
X ~ B (n1,p)
Y ~ B (n2,p)
X + Y ~ B(n1 + n2, p)

(x) The method applied for fitting a binomial distribution to a given set of data is
called “Method of Moments”.

5. The distribution is called Binomial as the probabilities can be obtain by deferent


terms of the expansion of Binomial series (q+p)n

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CONCEPT OF UNIFORM DISTRIBUTION (DISCRETE VARIABLE)

1. If a discrete random variable ‘x’ assumes n possible values namely x1 x2, ....xn
with equal probabilities, then the probability of its taking any particular value is
always constant and is equal to (1/n). The p.m.f (Probability Mass Function) of such
distribution is given by f(x) = 1/n where x = x1 x2, .... xn. These distributions are known
as Uniform Distribution because the probability is uniform for all values of x.

e.g. Probability Distribution of the no. of points in a throw of a die.

x 1 2 3 4 5 6
p

2. Mean of Uniform Distribution is : and variance of uniform distribution is

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CA FOUNDATION STATISTICS

CLASSWORK SECTION

1. A discrete random variable x follows uniform distribution and takes only the values
5, 7, 12, 15, 18. Find P (x >10).
a) 2/5 b) 3/5 c) 4/5 d) None of the above

2. If a discrete random variable x follows uniform distribution and assumes only the
values 8, 9, 11, 15, 18, 20. Then find P(|x – 14| < 5).
a) 1 b) ½ c) 2/3 d) 1/3

3. A random variable x follows Binomial distribution with mean 2 and variance 1.2.
Then the value of n is:
a) 3 b) 5 c) 7 d) 6

4. The mean of binomial distribution B equal to


a) 3/5 b) 8/3 c) 3/4 d) 4/3

5. If in a Binomial distribution np = 9 and npq = 2.25, then q is equal to:


a) 0.75 b) 0.25 c) 0.10 d) 0.45

6. If in a Binomial distribution mean 20; S.D. = 4, then p is equal to:


a) 1/5 b) 2/5 c) 3/5 d) 4/5

7. A student obtained the following results: For the binomial distribution mean = 4,
variance = 3. Comment on the accuracy of his results.
a) Correct results, with n = 12
b) Correct results, with n = 16
c) Wrong calculations, as q > 1
d) None of the above

8. An unbiased dice is tossed 500 times. The standard deviation of the number of
‘sixes’ in these 500 tosses are:
a) 50/6 b)51/6 c)15/6 d) None of these

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9. Mean =10, SD= , Mode=


a) 10 b) 12 c) 9 d) 8

10. The mean of binomial distribution is 20 and standard deviation is 4 then;



a)

b)

c)

d)

11. If mean and variance are 5 and 3 respectively then relation between p and q is
a) p > q b) p < q c) p = q d) p is symmetry

12. If x is a binomial variable with a parameter n = 15 and p = 1/3, then the value of
mode of the distribution
a) 5 b) 5 and 6 c) 5.5 d) 6

13. The mode of Binomial distribution for which mean is 4 and variance is 3, is equal to?
a) 4 b) 4.25 c) 4.5 d) 4.1

6 coins are tossed. Find the probability of getting


14. All heads
a) 1/64 b) 15/64 c) 22/64 d) 5/16

15. Two heads


a) 15/64 b) 22/64 c) 5/16 d) 31/64

16. Two or more heads


a) 15/64 b) 22/64 c) 5/16 d) 57/64

17. At most two heads


a) 15/64 b) 22/64 c) 5/16 d) 15/22

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18. A machine produces 2% defectives on an average. If 4 articles are chosen randomly.


What is probability that there will be exactly 2 defective articles?
a) 0.0023 b) 0.115 c) 0.325 d) 0.452

19. The binomial distribution with mean = 20 and sd = 4 is:


a) (1/4 + 4/5)100 b) (4/5 + 1/5)100
c) (4/5 + 1/5)50 d) None of the above

20. The probability that a student is not a swimmer is 4/5, then the probability that out
of five students four are swimmers is

a) b) c) d) None of these

21. The overall percentage of failures in a certain examination is 60. What is the
probability that out of a group of 6 candidates at least 5 passed the examination?
a) b) c) d)

22. If 15 dates are selected at random, then the probability of getting two Sundays is:
a) 0.29 b) 0.39 c) 0.49 d) 0.23

23. Assuming that half the population is vegetarian and each of 128 investigators
takes a sample of 10 individuals to see whether they are vegetarian. How many
investigators would you expect to report that 2 people or less vegetarians.
a) 5 b) 7 c) 9 d) 11

An experiment succeed twice as often as it fails. What is the probability that in the
next 5 trials, there will be:

24. 3 successes.
a) 77 / 243 b) 81 / 243 c) 80 / 243 d) None of the above

25. At least 3 successes.


a) 80 / 243 b) 192 / 243 d) 77 / 243 d) None of the above

A man takes a step forward with a probability 0.6 and a step backward with a
probability of 0.4. Find the probability that at the end of 11 steps, the man is:

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CA FOUNDATION STATISTICS

26. One step ahead of starting point.


a) b)

c) d)

27. One step behind of starting point.


a) b)

c) d)

28. One step away of starting point.


a) b)

c) d)

29. If x and y are 2 independent binomial variable with parameters 6 and ½, 4 and ½
respectively, what is P(x + y ≥ 1)?
a) 1023/1024 b) 1056/1923
c) 1234/2678 d) None of the above

30. X is binomial variable with n = 20, what is the mean of X if it is known that x is
symmetric?
a) 5 b) 10 c) 2 d) 8

31. If X ~ B (n, p), what would be greatest value of the variance of x when n =16?
a) 2 b) 4 c) 8 d) 6

32. if x is a binomial variate with parameter 15 and 1/3, what is the value of mode of
the distribution
a) 5 and 6 b) 5 c) 5.50 d) 6

33. What is the probability of getting 3 heads if 6 unbiased coins are tossed
simultaneously?
a) 0.50 b) 0.20 c) 0.3125 d) 0.6875

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34. What is the probability of making 3 correct guesses in 5 True – False answer type
questions?
a) 0.3125 b) 0.5676 c) 0.6875 d) 0.4325

35. X is binomial variable such that 2P(x=2) = P(x=3) and mean of X is known to be 10/3.
What would be the probability that X assumes at most the value 2?
a) 16/81 b) 17/81 c) 47/273 d) 26/243

36. Assuming that one-third of the population is tea drinkers and each of 1000
enumerators takes a sample of 8 individuals to find out whether they are tea
drinkers or not, how many enumerators are expected to report that five or more
people are tea drinkers?
a) 100 b) 95 c) 88 d) 90

37. Out of 128 families with 4 children each, how many are expected to have at least
one boy and one girl?
a) 100 b) 105 c) 108 d) 112

38. In 10 independent rollings of a biased die, the probability that an even number will
appear 5 times is twice the probability that an even number will appear 4 times.
What is the probability that an even number will appear twice when the die is rolled
8 times?
a) 0.0304 b) 0.1243 c) 0.2315 d) 0.1926

Calculation of Parameters

39. A binomial random variable x satisfies the relation 9P(x = 4) = P(x =2) when n = 6.
Find the value of the parameter ‘P’?
a) 1 / 2 b) 1 / 3 c) 1 / 4 d) 1 / 5

40. In a binomial distribution consisting of 5 independent trials, probability of 1 and


2 successes are 0.4096 and 0.2048 respectively. Find the parameter ‘P’ of the
distribution?
a) 1 / 3 b) 1 / 4 c) 2 / 5 d) 1 / 5

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Theoretical Aspect
41. The probability distribution whose frequency function f(x) = 1/n,
x = x1, x2, ..., xn is known as:
a) Binomial distribution b) Poisson distribution
c) Normal distribution d) Uniform distribution

42. Probability Function is known as


a) Frequency Function b) Continuous Function
c) Discrete Function d) None

43. The no. of points obtained in a single throw of an unbiased die follows
a) Binomial Distribution b) Poisson Distribution
c) Uniform Distribution d) None

44. The no. of points obtained in a single throw of an unbiased, die has frequency
function
a) f(x) = ¼ b) f(x) = 1/5 c) f(x) = 1/6 d) None

45. If for any distribution f(x) = 1/n, then mean of the distribution would be:
a) n/2 b) (n + 1)/2 c) (n – 1)/2 d) None of the above

46. A theoretical probability distribution.


a) Does not exit b) exists in theory
c) exists in real life d) (b) and (c) both

47. Binomial distribution is a:


a) Discrete Probability Distribution
b) Continuous Probability Distribution
c) Both a) and b) above
d) Neither a) nor b) above

48. An important discrete probability distribution is:


a) Normal Distribution
b) Binomial Distribution
c) Geometric Distribution
d) None of the above

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49. The important characteristic(s) of Bernoulli trials is:


a) Trials are independent
b) Each trial is associated with just two possible outcomes.
c) Trials are infinite
d) Both a) and b) above

50. An example of a bi-parametric discrete probability distribution is


a) binomial distribution
b) Poisson distribution
c) normal distribution
d) both (a) and (b)

51. In Binomial distribution ‘n’ means


a) Number of trials of the experiment
b) Number of success.
c) The probability of getting success.
d) None of the above

52. In Binomial distribution ‘p’ denotes probability of:


a) Success
b) Failure
c) Both a) and b) above
d) None of the above

53. The mean of a Binomial distribution with parameter n and p is:


a) n (1 – p) b) np (1 – p) c) np d) n

54. Variance of Binomial distribution is


a) np b) npq c) nq d) pq

55. The mean of binomial distribution is :


a) Always more than its variance
b) Always equal to its standard deviation
c) Always less than its variance
d) Always equal to its variance

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56. The maximum value of the variance of a Binomial distribution with parameters
and pis :

a) b) c) d)

57. For a binomial distribution, there may be


a) one mode b) two mode c) zero mode d) (a) or (b)

58. Binomial distribution is symmetrical if:


a) p > q b) p = q c) p < q d) p ≠ q

59. When ‘p’ = 0.5, the binomial distribution is:


a) Asymmetrical
b) Symmetrical
c) Both a) and b) above
d) Neither a) nor b) above

60. A Binomial distribution is:


a) Never negatively skewed
b) Never positively skewed
c) Never symmetrical
d) Symmetrical when p = 0.5

61. For a binomial distribution, mean and mode


a) Are always equal
b) Are never equal
c) are equal when q = 0.50
d) Do not always exist.

62. When ‘p’ is larger than 0.5, the binomial distribution is


a) Asymmetrical
b) Symmetrical
c) Both
d) None

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63. For n independent trials in Binomial distribution, the sum of the powers of p and q
is always n,whatever be the number of successes.
a) True b) False
c) both of a) and b) above d) None of the above

64. The results of ODI matches between India and Pakistan follows:
a) Binomial distribution b) Poisson distribution
c) Normal distribution d) (b) or (c)

65. In a Binomial distribution if n is infinitely large, the probability p of occurrence of


event is close to ____ and q is close to ____ then binomial distribution follows to
Poisson distribution.
a) 0, 1 b) 1,1 c) 1,0 d) None of the above

66. For a binomial distribution if variance = mean/2, then the values of n and p will be
a) 1 and 1/2 b) 2 and 1/2 c) 3 and ½ d) Any value and 1/2

67. Examine the validity of the following:


Mean and standard deviation of a binomial distribution are 10 and 4 respectively.
a) Not valid b) Valid
c) Both a) and b) d) Neither a) nor b)

68. A theoretical probability distribution


a) Doesn’t exist b) Exist in theory
c) Exist in real life d) both (b) and (c)

69. Probability distribution may be


a) Discrete b) continuous c) infinite d) (a) or (b)

70. Parameter is a characteristic of


a) Population
b) sample
c) Probability distribution
d) Both (a) and (b)

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71. An example of a parameter is


a) sample mean
b) Population mean
c) Binomial distribution
d) sample size

72. The variance of binomial distribution with parameters n and p is


a) n(1-p) b) np(1-p) c) d)

73. When a coin is tossed 10 times then we see


a) Normal Distribution
b) Poisson Distribution
c) Binomial Distribution
d) None

74. Binomial probability Distribution is a


a) Continuous b) discrete c) both d) none

75. When there are a fixed number of repeated trial of any experiments under identical
conditions for which only one of two mutually exclusive outcomes, success or failure
can result in each trail then, we use
a) Normal Distribution
b) Binomial Distribution
c) Poisson Distribution
d) None

Theory Answer Key


41.     D 42.     A 43.     C 44.     C 45.     A
46.     B 47.     A 48.     B 49.     D 50.     A
51.     A 52.     A 53.     C 54.     B 55.     A
56.     C 57.     D 58.     B 59.     B 60.     D
61.     C 62.     A 63.     B 64.     A 65.     A
66.     A 67.     A 68.     A 69.     D 70.     B
71.     A 72.     B 73.     B 74.     B 75.     B
76.     B

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B. POISSON DISTRIBUTION
1. The probability of ‘x’ no. of success or the p.m.f (Probability Mass Function) of a
Poisson Distribution is given by

P(x) = ( ‫ = ג‬m)
where x = desired no. of success.
e 2.71828
Note1 : ( = m) Mean = variance = parameter of the distribution
Note2: is a constant and the value of which can be obtained from the table.
Note3: When the parameter ‘m’ is not provided but n and p are provided we shall
use m = np for evaluating the parameter.

2. It is a discrete probability distribution where the variable ‘x’ can assume values ‘x’=
0, 1, 2, 3,......∞.

3. This distribution is a limiting case of Binomial Distribution when
(i) n → ∞ (i.e. no. of trials become very large)
(ii) p → 0, (i.e. probability of success is very small)
(iii) q → 1, (i.e. probability of failure is very high)
(iv) np is finite and constant which is denoted by ‘m’ i.e. np = m or

4. Some examples of Poisson Distribution:


(i) No. of telephones calls per minute at a switch board
(ii) The no. of printing mistake per page in a large text.
(iii) The no. of cars passing a certain point in 1 minute
(iv) The emission of radio active (alpha) particles.

5. The conditions under which the Poisson Distribution is used or the condition for
Poisson Model are as follows:
(i) The probability of having success in a very small time interval (t, t + dt) is K. dt
(where k > 0 and is constant)
In other words, probability of success in a very small time interval is directly
proportional to time internal dt.
(ii) The probability of having more than one success in this time interval is very
low.
(iii) Statistical independence is assumed i.e. the probability of having success in

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this time interval is independent of time ‘t’ as well as of the earlier success.

6. Poisson Distribution is also known as “Distribution of Improbable Events” or


“Distribution of Rare Events”.

7. Characteristic or Properties of Poisson Distribution.


(i) Poisson Distribution is uniparametric i.e. it has only one parameter ‘m’ or ‘ ’
(ii) Mean of distribution = m
(iii) Variance = m
(iv) In poisson distribution mean = variance and hence they are always positive
(v) SD =
(vi) Since ‘m’ is always positive Poisson Distribution is always positively skewed.
(vii) The distribution can be either unimodal or bimodal depending on values of m.

Case I : When ‘m’ is not an integer then the distribution is uni-modal and the
value of the mode will be highest integral value contained in ‘m’.
E.g. m = 5.6 then modal value is 5 (greatest integer contained in 5.6)

Case II: When ‘m’ is an integer; the distribution is bimodal and the modal values
are m, m – 1
E.g . if ‘m’ = 4 (an integer, hence the distribution is bimodal and the modes
are 4 and 4 – 1 i.e. 4 and 3)

(viii)
Additive Property of Poisson Distribution: If ‘x’ and ‘y’ are two independent
Poisson Variates with parameters(m1) and (m2) respectively then (x + y) will
also follow a Poisson Distribution with parameter (m1 + m2). Symbolically the
fact is expressed as follows: X ~ P (m1), Y ~ P (m2)
X + Y ~ P(m1 + m2) provided x and y are independent

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CLASSWORK SECTION

1. If a random variable X follows Poisson Distribution, such that P(X = 1) = P(X= 2), then
its mean and variance are:
a) 4, 4 b) 3, 3 c) 2, 2 d) 5, 5

2. In a Poisson Distribution P(X = 0) = P(X = 1) = k, the value of “k” is:


a) 1 b) c) d)

3. For a Poisson Variate X, if P (X= 0) = 0.2, then the variance of the distribution is:
a) b) c) d) None of the above

4. If x is Poisson variety with a parameter 4 find the Mode of the Distribution?


a) 4,2 b) 4,3 c) 4,4 d) None

5. For Poisson variate X, P(x=2) =3 p(x=4). Then the standard deviation of x is


a) 2 b) 4 c) d) 3

X is Poisson variate satisfying the following condition,


9 p(x=4) + 90 p(x=6) = p(x=2)
6. What is the value of P(x≤1)?
a) 0.5655 b) 0.6559 c) 0.7358 d) 0.8201

7. P (X = 1)
a) 0.1464 b) 0.0732 c) 0.3725 d) 0.3679

8. P (X is at least = 3)
a) 0.7621 b) 0.2671 c) 0.6721 d) 0.08025

9. P(X is almost 2)
a) 0.3297 b) 0.2549 d) 0.2379 d) 0.91975

10. P (3 < x < 5)


a) 0.3904 b) 0.01533 c) 0.1904 d) 0.0904

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11. P (3≤ x < 5).


a) 0.5987 b) 0.4598 c) 0.07665 d) 0.5465

12. The variance of a Poisson Variate is 3. Find the probability that x = 2.


(Given e-3 = 0.0498)
a) 0.2241 b) 0.1422 c) 0.2142 d) 0.2214

Between 4 and 5 PM, the average number of phone calls per minute coming into the
switchboard of the company is 3. Find the probability that in one particular minute
there will be: (Given e-3 = 0.0498)

13. No phone call


a) 0.0498 b) 0.0598 c) 0.4598 d) 0.4587

14. Exactly 2 phone calls


a) 0.1422 b) 0.2214 b) 0.2251 d) 0.2241

It is found that the number of accidents occurring in a factory follows Poisson


distribution with a mean of 2 accidents per week. (Given e-2 = 0.1353)

15. Find the probability that no accident occurs in a week


a) 0.531 b) 0.315 c) 0.1353 d) None of the above

16. Find the probability that the number of accident in a week exceeds 2.
a) 0.3235 b) 0.523 c) 0.352 d) None of the above

17. A radioactive source emits on the average 2.5 particles per second. Calculate that
2 or more particles will be emitted in an interval of 4 seconds.
a) b) c) d) None of the above

18. If the standard deviation of a Poisson variate X is 2, what is P (1.5 < X <2.9)?
a) 0.231 b) 0.158 c) 0.15 d) 0.1464

19. If the mean of a Poisson variable X is 1, what is P (X = takes the value at least 1)?
a) 0.456 b) 0.821 c) 0.632 d) 0.254

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20. If X ~ P (m) and its coefficient of variation is 50, what is the probability that x would
assume only non-zero values?
a) 0.018 b) 0.982 c) 0.989 d) 0.976

21. If 1.5 per cent of items produced by a manufacturing unit are known to be defective,
what is the probability that a sample of 200 items would contain no defective item?
a) 0.05 b) 0.15 c) 0.20 d) 0.22

22. If for a Poisson variable of f(2)=3 f(4), what is the variance of X?


a) 2 b) 4 c) d) 3

23. A renowned hospital usually admits 200 patients every day. One per cent patients,
on an average, require special room facilities. On one particulars morning, it was
found that only one special room is available. What is the probability that more
than 3 patients would require special room faculties?
a) 0.1428 b) 0.1732 c) 0.2235 d) 0.3450

24. In Poisson Distribution. Probability of success is very close to


a) 1 b) -1 c) 0 d) none

Binomial Approximation to Poisson Distribution


Experience has shown that, as the average, 2% of the airline’s flights suffer a minor
equipment failure in an aircraft. Estimate the probability that the number of minor
equipment failures in the next 50 flights will be(e-1=.3679)

25. 0 (Zero)
a) 0.3679 b) 0.2498 c) 0.3598 d) None of the above

26. At least 2 (Two)


a) 0.2224 b) 0.4424 c) 0.2242 d) 0.2642

27. In a company manufacturing toys, it is found that 1 in 500 is defective. Find the
probability that there will be at the most two defectives in a sample of 2000 units.
[Given e-4 = 0.0183]
a) 0.2597 b) 0.3549 c) 0.2549 d) 0.2379

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Miscellaneous Problems
28. A local electric appliance has found from experience the demand for Tube light is
distributed as Poisson distribution with a mean of 4-tube light per week. [Given
e-4 = 0.0183] if the shop keeps 6 tubes during a particular week, what is the probability
that the demand will exile the supply during that week
a) 0.1114 b) 0.2224 c) 0.1525 d) 0.1254

29. A car hire firm has 2 cars which is hired out every day. The number of demand per
day for a car follows Poisson distribution with mean 1.20. What is the proportion of
days on which some demand is refused?
(Given e1.20 = 3.32)
a) 0.25 b) 0.3012 c) 0.12 d) 0.03

30. P (x ≤ 2 / x ≥ 1) given E(x) = 2.2 & e–2.2 = .1108


a) 0.58 b) 0.68 c) 0.70 d) None of the above

Theoretical Aspects
31. Poisson distribution is a _____________ probability distribution.
a) Continuous b) Discrete
c) Both of a) and b) above d) Neither a) nor b) above

32. Which one is uni-parametric distribution?


a) Normal Distribution b) Poisson Distribution
c) Hypergeometric Distribution d) Binomial Distribution

33. Which one is not a condition of Poisson model?


a) The probability of having success in a small time interval is constant
b) The probability of having success in a small interval is independent of time and
also of earlier success
c) The probability of having success more than one in a small time interval is very
small.
d) None of the above

34. __________ Distribution is a limiting case of Binomial distribution.


a) Normal Distribution b) Poisson Distribution
c) Chi-Square Distribution d) (a) & (b) both

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35. Poisson distribution may be


a) Bimodal b) Uni modal
c) Multi Modal d) Either a) or b) above and not c)

36. ___________ Distribution is sometimes known as the “distribution of rare events”.


a) Binomial b) Normal c) Geometric d) Poisson

37. In ____________ distribution, mean = variance


a) Chi- Square b) Normal c) Poisson d) Hypergeometric

38. When the number of trials is large and probability is small then the distribution
used is in place of binomial distribution is:
a) Poisson Distribution b) F – Distribution
c) t – Distribution d) Normal Distribution

39. For a Poisson distribution


a) Standard Deviation and Variance are equal.
b) Mean and Variance are equal.
c) Mean and Standard Deviation are equal.
d) Both a) and b) above

40. Number of radio-active atoms decaying in a given interval of time is an example of


a) Normal Distribution b) Binomial Distribution
c) Poisson Distribution d) None of these

41. In Poisson Distribution, probability of success is very close


a) 1 b) 0.8 c) 0 d) None of the above

42. Poisson distribution is


a) Always negatively skewed b) Always positively skewed
c) Always symmetric d) Symmetric only when m = 2

43. The Poisson distribution tends to be symmetrical if the mean value is


a) Zero b) Very Low c) High d) None of the above

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44. In _______ distribution Mean = variance


a) Normal b) Binomial c) Poisson d) None of the above

45. In Poisson Distribution, probability of success is very close to:


a) -1 b) 0 c) 1 d) None

Theoretical Aspect Answer Key



31. B 32. B 33. A
34. D 35. D 36. D
37. C 38. A 39. B
40. C 41. C 42. B
43. C 44. C 45. B

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C. Normal or Gaussian Distribution

1. It is a continuos probability distribution where the variable ‘X’ can assume any value
between –

2. The Probability Density Function of a Normal Distribution is given by


where = mean
= Standard Division

Note 1 : and are the two parameters of Normal Distribution and hence it is
bi-parametric in nature.

Note 2 : 3.1416 and e 2.71828 which are constant.

3. Replacing by ‘z’ we obtain another distribution called Standard Normal


Distribution with mean 0 and S.D. 1 and is given by the density function

f(z) =

Note1 : implies Normal Distribution with (mean) and (variance)

Note2 : N(0,1) implies Standard Normal Distribution with Mean = 0 and S.D. = 1.

Note3 : ‘z’ is called Standard Normal Variate or Variable.

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4. Caculation of Mean & S.D. of Z


(i) Calculation of Mean of Z (ii) Calculation of Variance of z

5. The probability of success under Normal Distribution in calculated by evaluating the


area under a curve called Normal Frequency curve which in shown in the following
diagram
Normal Curve

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Standard Normal Curve

Mean = Median = Mode = 0

6. CONVERSION OF X VALUES FROM NORMAL FREQUENCY CURVE TO STANDARD


NORMAL CURVE VALUES (Z - VALUES)

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PROPERTIES OF NORMAL CURVE AND NORMAL DISTRIBUTION

1. It is a bell shaped curve symmetrical about the line x = and assymptotic to the horizontal
axis (x = axis)

2. The two tails extend upto infinity at both the ends.

3. As the distance from the mean increases, The curve comes closer to the horizontal axis (x
= axis)

4. The curve has a single peak at x = .

5. The two points of inflection of the normal curve are at x = and x = respectively
where the normal curve changes its curvature.

6. The same points of inflection under standard normal curve are at z = – 1 and z = 1.

7. It is a continous prob. distribution where - ∞ < χ < ∞

8. The distribution has two parameters and . Where = mean = standard deviation.
Hence normal is bi-parametric distribution.

9. The normal curve has a single peak. Hence it is unimodal and mean. Median and mode
coincide. at x = .

10. The maximum ordinate (i.e. y) lies at x = .

11. The distribution being symmetrical,


i) Mean = Median = Mode
ii) Skewness = 0

12. The two Quartiles are Q1 = – .675 (Lower Quartile)


And Q3 = + .675 (Upper Quartile)

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13. Quartile Deviation (Q. D.)


2
= 3
(Approximately)

4
14. Mean Deviation (M. D.) = 0.8 = (Approximately)
5

15. QD : MD : SD = 10 : 12 : 15

16. (i) The total area under the Normal or Standard Normal Curve = 1 ( Total Probability =
1), Symbolically,

(ii) f(x) 0 for all X

17. The curve being Symmetrical,


divides curve into two equal halves
such that (Area between – )
= (Area between to + ) = 0.5

18. Similarly, under standard normal curve,


(area between – to z = 0)
= (area between z = 0 to z = + ) = 0.5

19. Symbilically

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20. The curve being symmetrical area of portions cut off from right and left of X = (or z = 0)
are equal.

Symbolically, P (– a Z 0) = P(0 Z a).


Note : Here “Area” implies “Probability”

21. The probability that a normal variate Z will take a value less than or equal to a particular
value (say Z = K) will be denoted by (K) = P( Z K)

Note : The probability of success is calculated by evaluating the areas from the
standard normal curve, and the areas are obtained from normal table.



22. % Distribution of areas under Normal Curve / Standard Normal Curve


C-I
P(– 1 Z 0) = .3413,
P(0 Z 1) = .3413.
P(– 1 Z 1) = .6826.
68.26% of total area lies between Z = – 1 and Z = + 1 or X = and Z =

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C-II
P(– 2 Z 0) = .4772.
P(0 Z 2) = .4772.
P(– 2 Z 2) = .9544.
95.44% of total area lies between Z = – 2 and Z = + 2 or X = and X =

C-III
P(– 3 Z 0) = .4987.
P(0 Z 3) = .4987.
P(– 3 Z 3) = .9974.
99.74% of total area lies between Z = – 3 and Z = + 3 or X = and X =

23. Additive Property of Normal Distribution


If X & Y are independent normal variates with means & and standard deviation &
respectively, then Z = X + Y will also follow a Normal Distribution with mean =
and S.D.
symbolically,

24. In continuous probability Distribution, Probability is to be assigned to intervals and not to


individual values and accordingly the Probability that a Random Variable X will take any
specific value will be “0” i.e. P(X = C) = 0 when Distribution is continuous.

25. Concept of Cumulative Distribution Function (C. D. F.)


Cumulative Distribution Function (C. D. F.) is defined as the Probability that a Random
Variable X takes a value less than or equal to A specified value x and is denoted by F(X)
F(x) = P (X x)
F(X) represents Probability; 0 F(X) 1

26. F(X) = P(X C) will imply the area under the probability curve to the left of vertical line at
C.

27. Uniform Distribution (Continuous)

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A. A continuous Random Variable is said to follow uniform distribution if the probabilities


associated with intervals of same width are always equal at all parts and for any
range of values.

B. P. D. F. of uniform distribution is given by : f(x) =

C. It is also known as “Rectangular Distribution”

D. Probability that X lies between any two specified values C and D within the range (“b
and a”) is given by :

28. Areas under Standard Normal Curve


C-I

C-II

C-III

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C-IV

C-V

C-VI

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C-VII

C-VIII

NOTE:
1) If the -ve and +ve values happen to be identical .i.e P in such a case the total
area will be = 2P

2) When in the problem the magnitude of the given area is greater than “.5” it implies
that area from - to that particular value of ‘z’ is provided, for evaluating the area
from 0 to that particular value of ‘z’ subtract .5 from it.

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29. Methods of fitting Normal Distribution or a Normal Curve


There Are Two Methods Of Fitting Normal Distribution
1) Ordinate Method
2) Area Method

30. Condition under which “Binomial” and “Possion” approaches “Normal Distribution”

Case I
Normal Distribution as a limiting case of Binomial Distribution when
a) n, the number of trials is infinitely large I.e. n
b) Neither p(or q) is very small, i.e. p and q are fairly near equal
c) In other words, if neither p nor q is very small but n is sufficiently large Binomial
Distribution approaches Normal Distribution.
d) In such a case, the Standard Normal Variate is given by

Case II
Poission Distribution tends to Normal Distribution with standardised Variable


Where m = Mean = = Variance

= S.d = as n increases indefinitely (i.e. as n )

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CLASSWORK SECTION

1. For a normal distribution mean = 50, median = 52. Comment.


a) Statement is correct, as median of normal distribution is greater than its mean.
b) Statement is correct, as difference between median and mean of normal
distribution is always 2.
c) Statement is Incorrect
d) No comments.

2. If the mean deviation of a normal variable is 16, what is its quartile deviation?
a) 10 b) 15 c) 13.5 d) 12.05

3. If the inflexion points of normal distribution are 6 and 14, find its standard deviation
a) 4 b) 6 c) 10 d) 12

4. If the quartile deviation of a normal curve is 4.05, then its mean deviation is:
a) 5.26 b) 6.24 c) 4.24 d) 4.80

5. If the 1st quartile and mean deviation about median of a normal distribution are
13.25 and 8 respectively, then the mode of the distribution is:
a) 10 b) 12 c) 15 d) 20

6. If the two quartiles of normal distribution are 14.6 and 25.4 respectively, what is
the standard deviation of the distribution?
a) 6 b) 8 c) 9 d) 10

7. For normal distribution with mean =150 and S.D = 45; find Q1 and Q3
a) 119.35 and 190.65 b) 119.65 and 180.35
c) 180.35 and 119.65 d) 123.45 and 183.65

8. What is the mean of x having the following density function


a) 10 b) 4 c) 40 d) None of these

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9. If for normal distribution Q1 = 54.52 and Q3 = 78.86 then the median of the
distribution is
a) 12.17 b) 39.43 c) 66.69 d) None of these

10. What is the first quartile of x having the following probability density function?


a) 4 b) 5 c) 5.95 d) 6.75

11. If x and y are 2 independent normal variable with mean 10 and 12 and SD 3 and
4 respectively, then (x + y) is also a normal distribution with mean ____ and SD
_____.
a) 22, 7 b) 22, 25 c) 22, 5 d) 22, 49

12. If the mean deviation of a normal variable is 16, what is the standard deviation?
a) 9 b) 6 c) 20 d) 8

13. If the two quartiles of N (µ, ) are 14.6 and 25.4 respectively, what is the standard
deviation of the distribution?
a) 9 b) 6 c) 10 d) 8

Area under Normal / Standard Normal Curve
Find the area under the standard normal curve for the following values of standard
normal variate :

14. Between
a) 0.5000 b) 0.4192 c) 0.1942 d) 0.2192

15. Between
a) 0.2323 b) 0.2159 c) 0.2594 d) 0.2123

16.
a) 0.0245 b) 0.3256 c) 0.0392 d) 0.0540

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17.
a) 0.9750 b) 0.9580 c) 0.9980 d) 0.9780

18. If the standard normal curve between z = 0 to z =1 is 0.3413, then the value of (1)
is:
a) 0.5000 b) 0.8413 c) - 0.5000 d) 1

19. If X ~ N (50, 16), then which of the following is not possible


a) P(x>60) = 0.3 b) P(x<50) = 0.50
c) P(x<60) = 0.40 d) P(x>50) = 0.50

20. If X ~ N (3, 36) and Y ~ N (5, 64) are two independent normal variate then if (x+y) ~
N (8, A) also follows normal distribution, then value of A will be
a) 100 b) 10 c) 64 d) 36

21. If follows the Normal Distribution with Mean 12 and Variance 16, find
a) 0.22750 b) 0.25789 c) 0.02275 d) 0.03357

22. If a random variable x follows normal distribution with mean as 120 and standard
deviation as 40, what is P (x≤ 150 / x > 120)?
a) 0.85 b) 0.90 c) 0.95 d) 0.5468

23. For certain normal variate x, the mean is 12 and S.D is 4 find P(X≥20):
[Area under the normal curve from z=0 to z=2 is 0.4772]
a) 0.5238 b) 0.0472 c) 0.7272 d) 0.0228

24. if X follows normal distribution with µ = 50 and = 10, what is the value of
P (x≤60 / x>50)?
a) 0.8413 b) 0.6828 c) 0.1587 d) 0.7256

25. In a sample of 800 students, the mean weight and standard deviation of weight are found
to be 50 kg and 20 kg respectively. On the assumption of normality, what is the number
of students weighting between 46kg and 62kg? Given area of the standard normal curve
between z = 0 to z = 0.2 = 0.0793 and area between z = 0 to z = 0.60 = 0.2257.
a) 250 b) 244 c) 240 d) 260

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26. The salary of workers of a factory is known as to follow normal distribution with
an average salary of ` 10,000 and standard deviation of salary as ` 2,000. If 50
workers receive salary more than ` 14,000, then the total no of workers in the
factory is
a) 2193 b) 2000 c) 2200 d) 2500

27. For a normal distribution with mean as 500 and SD as 120, what is the value of
k so that the interval [500, k] covers 40.32 per cent area of the normal curve?
Given (1.30) = 0.9032
a) 740 b) 750 c) 656 d) 800

28. If the weekly wages of 5000 workers in a factory follows normal distribution with
mean and SD as `700 and `50 respectively, what is the expected number of workers
with wages between ` 660 and ` 720?
a) 2050 b) 2200 c) 2218 d) 2300

29. 50 per cent of a certain product have weight 60kg or more whereas 10 per cent gave
weight 55 kg or less. On assumption of normality, what is the variance of weight?
Given (1.28) = 0.90.
a) 15.21 b) 9.00 c) 16.00 d) 22.68

30. The I.Q. of army volunteers in a given year are normally distributed with mean
=110 and standard deviation =10. The army wants to give advance training to 20%
of those recruits with the highest IQ. Find that lowest score acceptable for the
advanced training? [ø (0.84) = 0.80]
a) 118.4 b) 116.4 c) 108.4 d) 101.6

31. The sample of 100 dry battery cell tested to find the length of life produced the
following results:

What is percentage of battery cells are expected to have life less than 6 hours (Area
under normal curve from z = 0 to z=2 is 0.4772).
a) 2.28% b) 2.56% c) 4.56% d) 1.93%

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Theoretical Aspects
32. If X ~ N (µ, ) than the range of the variable X is ___________
(a) 0 < X < (b) - < X <
(c) - < X < 0 (d) None

33. In Normal distribution, the maximum value of the p.d.f. f(x) is at X = __________
(a) µ (b) (c) 0 (d) None

34. For a normal distribution, P(X ≥ µ ) = ___________


(a) 0 (b) 1 (c) 0.5 (d) 0.6826

35. Which of the following are continuous distribution?


i) Binomial Distribution
ii) Chi-square Distribution
iii) Normal Distribution
iv) Standard Normal Distribution
v) Student’s t – Distribution
vi) Snedecor’s F – Distribution
vii) Poisson Distribution
viii) Hypergeometric Distribution
ix) Multinomial Distribution
a) II, III, IV, V, VI above
b) All of I, II, III, IV, V, VI, VII, VIII, IX above
c) All but I, VII, VIII above
d) Only III, IV above

36. Probability density function of a continuous distribution satisfies which of the


following(s) condition(s):
i.

ii.

iii.
a) All of I, II & III above b) All but II above
c) All but I above d) None of I, II, III above

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37. Probability density function is associated with which of the following variable?
a)
Discrete
b) Continuous
c) Both Discrete and Continuous
d) Neither Discrete nor Continuous

38 Probability density function is always


a) Greater than 0
b) Greater than or equal to 0
c) Less than 0
d) Less than equal to 0

39. The most important continuous probability distribution is known as :


a) Chi-square distribution
b) Normal distribution
c) Poisson distribution
d) Sampling distribution

40. ______ Distribution is a continuous probability distribution and is defined by the


density function: , where

a) Normal b) Gaussian
c) Rectangular d) Both of a) and b) above

41 The probability distribution of z is called Standard Normal Distribution and is defined


by the probability density function:

a) b)

c) d)

42. The parameters of the normal distribution are:


a) b) c) d) None of the above

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43. What are the mean and standard deviation of standard normal distribution?
a) 0 and 1 b)
c) d) The distribution has no parameters

44. If a random variable is normally distributed with mean and standard deviation
is called:
a) Normal Variate b) Standard Normal Variate
c) Chi-square Variate d) Uniform Variate

45. The probability curve of normal distribution is known as:


a) Uniform Curve b) Standard Curve
c) Normal Curve d) Lorenz Curve

46. The curve of which of the following distribution is uni-modal and bell shaped with
the highest point over the mean
a) Poisson b) Binomial c) Normal d) All of the above

47. The total area under the normal curve is:


a) 1.00 b) 0.50 c) 0.85 d) 1.25

48. The curve of which of the following distribution(s) has single peak?
a) Poisson b) Binomial
c) Normal d) Both a) and b) above

49. The normal curve is:


a) Positively Skewed b) Symmetrical in nature
c) Negatively Skewed d) None of the above

50. The shape of the Normal Curve is:


a) Inverse J b) U c) J d) Bell

51. In Normal distribution as the distance from the _______ increases, the curve comes
closer and closer to the horizontal axis.
a) Standard Deviation b) Mean
c) Both a) and b) above d) Neither a) nor b) above

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52. The mean and mode of a Normal distribution


a) May be different. b) May be equal
c) Are always equal d) Either a) or b) above

53. For Standard Normal distribution, which of the following is correct?


a) Mean = 1; S.D. = 1 b) Mean = 1, S.D. = 0
c) Mean = 0, S.D. = 1 d) Mean = 0, S.D. = 0.

54. Because of the symmetry of Normal distribution the median and the mode have the
______ value as that of the mean.
a) Greater b) Smaller c) Same d) Nothing can be said

55. In Normal distribution the probability has the maximum value at the
a) Mode b) Median c) Mean d) All of the above

56. The mean deviation about median of a Standard Normal Variate is:
a) 0.675 b) 0.675 c) 0.80 d) 0.80

57. For a standard normal distribution, the points of inflexion are:


a)
b)
c)
d) The distribution has no points of inflexion

58. The interval ( ) covers


a) 96% area of a normal distribution.
b) 95% area of a normal distribution.
c) 99% area of a normal distribution.
d) All but 0.27% area of a normal distribution

59. Area between -1.96 to 1.96 in a normal distribution is


a) 95.45% b) 95% c) 96% d) 99%

60 If neither p nor q is very small but n is sufficiently large, then Binomial distribution
is very closely approximated by distribution.
a) Poisson b) Normal c) t d) None.

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61. Poisson distribution approaches a Normal distribution as n:


a) Increase infinitely b) Increase moderately
c) Decrease d) None of the above

62. The cumulative distribution function of random variable x is given by


a) F(x) = P (X x) b) F(X) = P (X = x)
c) F(x) = P (X x) d) None of these

63. The number of methods of fitting the Normal Curve is


a) 1 b) 2 c) 3 d) 4

64. The symbol (a) indicates the area of standard normal curve between
a) 0 to a b) a to c) - to a d) - to

65. If the area of standard normal curve between z = 0 to z = 1 is 0.3413, the value of
(1) is
a) 0.5000 b) 0.8413 c) -0.5000 d) 1

66. For which distribution, whatever may be the parameter of distribution, it has same
shape,
a) Normal b) Binomial c) Poisson d) None

67. Distribution is asymptotic to the horizontal axis


a) Binomial b) Normal c) Poisson d) t

68. f(x) = where a b, is the probability density function of


a) Uniform Distribution
b) Rectangular Distribution
c) Both of a) and b) above
d) Neither a) nor b) above

69. An approximate relation between Quartile deviation (QD) and Standard Deviation
(SD) of normal distribution is:
a) 5 QD = 4 SD b) 4 QD = 5 SD
c) 2 QD = 35 SD d) 3 QD = 2 SD

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70. In a Normal distribution


a) The first and second quartile equidistant from median
b) The second and third quartile are equidistant from the median
c) The first and third quartile equidistant from median
d) None of these

71. The probability that x assumes a specified value in continues probability distribution
is _________.
(a) 1 (b) 0
(c) -1 (d) None

72. The probability density function of a continuous random variable is defined




Find value of c?
(a) -1 (b) -1
(c) ½ (d) 0

73. A Continuous random variable x has the probability density function.


Where a is constant find value of a?

(a) (b)

(c) (d) None

74. The probability density function of a continuous variable



Find the value of constant k?
(a) -1 (b) 1
(c) 2 (d) 0

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Theory Answer Key

32 b 33 a 34 c 35.      a 36.      c
37.      b 38.      b 39.      b 40.      d 41.      c
42.      b 43.      d 44.      b 45.      c 46.      c
47.      a 48.      c 49.      d 50.      d 51.      b
52.      c 53.      c 54.      c 55.      d 56.      d
57.      a 58.      d 59.      b 60.      b 61.      a
62.      a 63.      b 64.      c 65.      b 66.      a
67.      b 68.      c 69.      d 70.      c 71. b

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Additional Information Related to


Theoretical Distribution
(Not in the syllabus)

Central Moments

A central moment is the expected value of a specified integral power of the deviation
of the variable from the mean. Using central moments of a variable (or probability
distribution), different properties can be studied.

In general rth central moment can be obtained by the following formula. It is denoted
by µr.


Where r = 1, 2, 3, 4 ... ... ... ... ... .

is first central moment.


is second central moment. So µ2 = variance (always)


Similarly by putting r = 3 and r = 4, we get third central moment (µ3) and fourth
central moment (µ4) respectively.

The third and fourth central moments (i.e. µ3 and µ4) are used to find the measures
of skewness and kurtosis. So let’s define it.

Skewness:
In simple words skewness means “Lack of symmetry”. It is asymmetry in the data or
probability distribution. If skewness is present, the curve appears skewed either to
the left or to the right, unlike bell-shaped in the case of symmetrical distribution.

Kurtosis:
In simple words “Kurtosis is a measure of peakedness of the curve” Kurtosis is also
said to be a measure of “tailedness” of the data or probability distribution.

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Numerically, skewness and kurtosis can be measured using central moments as


follows:

Measure of skewness:

Measure of kurtosis:


Note:
1. Generally ß1 and ß2 are used for measuring skewness and kurtosis.
2. The Sign outside in the formula of γ1 is same as that of µ3.

 Formula for finding first four central moments for the Binomial distribution, Poisson
distribution and Normal distribution are as follows:

Central Moments

For Binomial Distribution For Poisson Distribution For Normal distribution


µ1 = 0 µ1 = 0 µ1 = 0

µ2 = npq µ2 = m µ2 = σ2

µ3 = npq (1– 2p) µ3 = m µ3 = 0

µ4 = npq [1+3pq (n – 2)] µ4 = 3m2 + m µ4 = 3σ4

Note:
1. First central moment for any probability distribution is always 0.
2. Second central moments (µ2) for any probability distribution is always the variance of
the distribution.
3. For normal distribution, its odd numbered central moments (i.e. µ1, µ3... ...) are always
0.
4. For normal distribution µ4 = 3
5. For Poisson distribution, its second and third central (i.e. µ2 and µ3) are always equal.

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 Measures of skewness and kurtosis for Binomial distribution, Poisson distribution and
Normal distribution are as follows:

Measure For Binomial For Poisson For Normal


Distribution Distribution distribution
Skewness

kurtosis

For any probability distribution

 If β2 < 3 (i.e. γ2 < 0 ) then


distribution is Platykurtic
 If β2 = 3 (i.e. γ2 = 0 ) then
distribution is Mesokurtic

 If β2 > 3 (i.e. γ2 > 0 ) then


distribution is Leptokurtic

Note: For Normal distribution, β2 = 3 and hence γ2 = 0. So it is Mesokurtic distribution.

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Examples :
1. For a binomial distribution with parameters 9 and . Find measure of skewness (γ1) and
measure of Kurtosis (γ2). Also decide the type of distribution from the value of γ2.
Sol. Here n = 9 and p =
.


Since, the value at γ2 is negative (i.e. γ2 < 0), therefore it is Platykurtic distribution.

2. For a Poisson Variate, its mean = 4. Find fourth central moment.


Sol. Here, mean = m = 4
µ4 = 3(m2) + m = 3(4)2 + 4 = 52

3. For normal distribution having mean = 2 and variance = 4, find the central moment µ 4
.
Also find µ3.
Sol. Here, Variance σ2 = 4
Now, for normal distribution,
µ4 = 3 σ2 = 3 (4) = 12
µ3 = 0 (Since odd numbered central moments of normal distribution are always 0.)

4. For binomial distribution with = 4 and variance = 3.Find third central moment.
Sol. Here, mean = np = 4 & variance = npq = 3


Now, for binomial distribution,
µ3 = npq (1 - 2p)

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5. For Poisson distribution, its µ4 = 2 then find the variance.


Sol. Here µ4 = 2
3m2 + m = 2
3m2 + m – 2 = 0
(3m - 2) (m + 1) = 0
m= or m = –1
But for Poisson distribution, m is always positive
m=
Variance = m =

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HOMEWORK SECTION
BINOMIAL DISTRIBUTION

1. Seven coins are tossed simultaneously the probability of at least five heads is
(a) 12/128 (b) 17/128
(c) 21/128 (d) 29/128

2. The probability that a person hits a target is 1/3, the probability that he will hit the
target in 3 times out of 5 trials is
(a) 12/243 (b) 17/243
(c) 40/243 (d) 60/243

3. The probability of a smoker from a group of persons is 2/3. Five persons are selected
at random from the group, the probability that at least 4 of them are smokers is
(a) 112 / 243 (b) 117/243
(c) 221/243 (d) 32/243

4. Assuming that boys and girls are equally probable, the number of families out of
1600 families each having 5 children, with 3 boys are
(a) 800 (b) 500
(c) 200 (d) 100

5. Assuming that boys and girls are equally probable, the number of families out of
1600 families each having 5 children, with 5 girls are
(a)
50 (b) 100
(c)
800 (d)
25

6. Assuming that boys and girls are equally probable, the number of families out of
1600 families each having 5 children, with 2 or 3 boys are
(a) 800 (b) 600
(c) 1000 (d) 100

7. Assuming that boys and girls are equally probable, the number of families out of
1600 families each having 5 children, with all children of the same sex are
(a)
800 (b) 600
(c)
1000 (d) 100

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8. Five dice are thrown simultaneously for 96 times. An even number is regarded as
success, the expected frequencies of all five successes are
(a) 8 (b) 16
(c) 3 (d) 32

9. A and B play a game in which the probability of winning of A is 2/3, the probability
that A will win at least 6 times out of 8 trials is
(a) 512/ 2187 (b) 64/2187
(c) 32/2187 (d) 1024/2187

10. The mean of Binomial distribution is 4 and its variance is 2.4, the value of p is
(a) 0.4 (b) 0.5
(c) 0.3 (d) 0.2

11. The mean of Binomial distribution is 4 and its variance is 2.4, the value of n is
(a) 4 (b) 5
(c) 8 (d) 10

12. It is given that on an average it rains for 10 days out of 30 days. The probability that
it will rain for at least 3 days in a week is
(a) 219/729 (b) 313/729
(c) 330/729 (d) 335/729

13. A and B play 12 games of chess of which 6 are won by A, 4 by B and 2 end in a tie.
They agree to play 3 more games, the probability that A wins all the three games is
(a) 7/8 (b) 5/8
(c) 6/8 (d) 1/8

14. A and B play 12 games of chess of which 6 are won by A, 4 by B and 2 end in a tie.
They agree to play 3 more games, the probability that two games end in a tie is
(a) 5/36 (b) 5/72
(c) 5/144 (d) 5/60

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15. A and B play 12 games of chess of which 6 are won by A, 4 by B and 2 end in a tie.
They agree to play 3 more games, the probability that A and B win alternatively is
(a) 5/36 (b) 5/72
(c) 5/144 (d) 5/60

16. A and B play 12 games of chess of which 6 are won by A, 4 by B and 2 end in a tie.
They agree to play 3 more games, the probability that B wins at least one game is
(a) 19/27 (b) 9/27
(c) 9/18 (d) 5/27

17. What is the standard deviation of the number of recoveries among 48 patients
when the probability of recovering is 0.75?
(a) 36 (b) 81
(c) 9 (d) 3

18. X is a binomial variable with n = 20. What is the mean of X if it is known that x is
symmetric?
(a) 5 (b) 10
(c) 2 (d) 8

19. If X ~ B (n, p), what would be the greatest value of the variance of x when n = 16?
(a) 2 (b) 4
(c) 8 (d) √5

20. If x is a binomial variate with parameter 15 and 1/3, what is the value of mode of
thedistribution
(a) 5 and 6 (b) 5
(c) 5.50 (d) 6

21. If the overall percentage of success in an exam is 60, what is the probability that out
of agroup of 4 students, at least one has passed?
(a) 0.6525 (b) 0.9744
(c) 0.8704 (d) 0.0256

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22. If it is known that the probability of a missile hitting a target is 1/8, what is the
probabilitythat out of 10 missiles fired, at least 2 will hit the target?
(a) 0.4258 (b) 0.3968
(c) 0.5238 (d) 0.3611

23. X is a binomial variable such that 2 P(X = 2) = P(X = 3) and mean of X is known to
be10/3. What would be the probability that X assumes at most the value 2?
(a) 16/81 (b) 17/81
(c) 47/243 (d) 46/243

24. In 10 independent rollings of a biased die, the probability that an even number will
appear5 times is twice the probability that an even number will appear 4 times.
What is theprobability that an even number will appear twice when the die is rolled
8 times?
(a) 0.0304 (b) 0.1243
(c) 0.2315 (d) 0.1926

ANSWERS

1. (d) 6. (c) 11. (d) 16. (a) 21. (b)


2. (c) 7. (d) 12. (b) 17. (d) 22. (d)
3. (a) 8. (c) 13. (d) 18. (b) 23. (b)
4. (b) 9. (d) 14. (b) 19. (b) 24. (a)
5. (a) 10. (a) 15. (a) 20. (b)

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HOMEWORK SOLUTION
BINOMIAL DISTRIBUTION

1. Success Getting Heads


n=7
x>5

P=

q=

P (x > 5) = P (x = 5) + P (x = 6) + P (x = 7)

Option D

2. Success hitting the target


n=5
x=3

P=

q=

Option C

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3. Success Getting Smoker


n=5
x>4

P=

q=

P (x > 4) = P (x = 4) + P (x = 5) +

Option A

4. Success getting boy


N = 1600
n=5
x=3

P=

q=

Required families = 1600 x P(x = 3)



= 500 Option B

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5. Success getting Girl


N = 1600
n=5
x=5

P=

q=

Required families = 1600 x P(x = 3)




= 50 Option A

6. Success getting Boys


Required families = 1600 [P(x = 2) + P(x = 3)]


= 1000 Option C

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7. Success getting Boy


n=5
x=5
P=

q=

P (all boys) =

=

Success getting Girl
n=5
x=5

P=

q=

P (all girls) =

Required families = 1600

= 100 Option D

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8. Success getting even no


N = 96
n=5
x=5

P=

q=

P (x = 5) =


Expected frequency =

= 3 Option C

9. Success A’s Winning


n=8
x>6

P=

q=

P (x > 6) = P (x = 6) + P (x = 7) + P (x = 8)

Option D

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10. Mean = np
np = 4 ....(i)
Variance = npq
npq = 2.4 ....(ii)
from (i) and (ii)
4 (q) = 2.4

... ... ... ... (iii)


... ... ... ... (iv)


Option A

11. from Q.10


P=

q=

Were now
np = 4


n = 10 Option D

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12. Success raining


n=7
x>3

P=

q=

P (x 3) = P (x = 3) + P (x = 4) + P (x = 5) + P (x = 6) + P (x = 7)
= 1 – [P (x = 0) + P (x = 1) + P (x = 2)]



Option B

13. Success A’ winning


n=3
x=3

P=

q=

P (x = 3) =

Option D

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14. Success games end in the tie


n=3
x=2

P=

q=

P (x = 2) =

= Option B

15. Required probability


A’s win

B’s win

P (A B A) + p (B A B)

Option A

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16. Success B wins


n=3
x 1

P=

q=

P (x 1) = 1 – P (x = 0)

Option A

17.

= 3 Option D

18. Symmetric data




n = 20
mean = np


= 10 Option B

19. Highest Value of Variance =




= 4 Option B

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20. n = 15


= 5.33 Not integer
Mode = 5 } Integral part of (n + 1)P

21. Success Passing the exam


n=4
x 1

P=

q=

P (x 1) = 1 – P (x = 0)

= 0.9744 Option B

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22. Success hitting the target

= 0.3611 Option D

23.

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Option B

24.


= 0.0304 Option A

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HOMEWORK SECTION
POISSON DISTRIBUTION

1. A manufacturer produces switches and experiences that 2 per cent switches are
defective. The probability that in a box of 50 switches, there are at most two defective
is :
(a) 2 e–1 (b) e–1
(c) 2.5e–1 (d) 3e–1

2. A person has some cars, and the average demand of cars per day is 3, the probability
that on any day not more than 2 cars are in use is (e–3 = 0.0498)
(a) 0.5533 (b) 0.4233
(c) 0.7533 (d) 0.2533

3. The probability that a match stick is found without head is 1/100. Each match box
contains 50 sticks. Using Poisson distribution we can say that the percentage of
number of boxes having 0 sticks without head is (e–0.5 = 0.61)
(a) 40 (b) 51
(c) 61 (d) 25

4. The probability that a match stick is found without head is 1/100. Each match box
contains 50 sticks. Using Poisson distribution we can say that the percentage of
number of boxes having 1 stick without head is
(a) 40.5 (b) 50.5
(c) 75.5 (d) 30.5

5. The probability that a match stick is found without head is 1/100. Each match box
contains 50 sticks. Using Poisson distribution we can say that the percentage of
number of boxes having 2 sticks without heads is
(a) 8.5 (b) 7.63
(c) 8.75 (d) 10.25

6. In the production of electric fuses 2% are defective, the probability of getting at the
most 2 defective fuses in a box containing 200 fuses is (e–4 = 0.0183)
(a) 0.238 (b) 0.763
(c) 0.875 (d) 0.252

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7. In the production of electric fuses 2% are defective, the probability of getting 3


defective fuses in a box containing 200 fuses is (e–4 = 0.0183)
(a) 0.2952 (b) 0.1952
(c) 0.3952 (d) 0.4952

8. In the manufacturing of cotter pins it is known that 5% of the pins are defective. The
pins are sold in boxes of 100 and it is guaranteed that not more than 4 pins will be
defective in a box. What is the probability that a box will meet this guarantee?
(e–5 = 0.0067)
(a) 0.4480 (b) 0.5480
(c) 0.6480 (d) 0.4380

9. If 3% of electric bulbs manufactured by a company are defective, find the probability


that in a sample of 100 bulbs, exactly 5 bulbs are defective. (e–3 = 0.0498)
(a) 0.2952 (b) 0.1008
(c) 0.2008 (d) 0.3008

10. In one hospital 3 percent of the patients demand special rooms. On a particular day
3 special rooms were vacant. If 50 patients were admitted in the hospital on that
day, the probability that the demands for special room were not met is
(e–1.5 = 0.2231)
(a) 0.0658 (b) 0.1952
(c) 0.1304 (d) 0.1316

11. In a book, on an average there are 3 misprints in 5 pages. The number of pages
having more than 2 misprints in that book of 100 pages are (Use Poisson distribution)
(e–0.6 = 0.5488)
(a) 3.31 (b) 4.31
(c) 2.31 (d) 5.31

12. A factory produces 0.5% defective articles. If a sample of 100 articles is taken from
the production, the probability of getting 2 or more defective articles is
(e–0.5 = 0.6065)
(a) 0.0902 (b) 0.1902
(c) 0.1302 (d) 0.1102

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13. A random variable x follows Poisson distribution with mean 2 then P(X > 0) is equal
to(e–2 = 0.1353)
(a) 0.1353 (b) 0.2706
(c) 0.8647 (d) none of them

14. The mean of a Poisson variate is 0.81, then its S.D. is


(a) 0.81 (b) 0.9
(c) 0.8647 (d) none of them

15. x is a Poisson variate such that P(x = 3) = P(x = 4), mean =


(a) 2 (b) 3
(c) 4 (d) none of them

16. For a Poisson variate x its P(x = 1) = P(x = 2), variance is


(a) 2 (b) 3
(c) 1 (d) none of them

17. x is a Poisson variate such that P(x = 3) = P(x = 4), its S.D. is
(a) 4 (b) 3
(c) 2 (d) none of them

18. If for a Poisson variate x, P (x = 0) = P(x = 1) = k, then k =


(a) 0.3681 (b) 2.7183
(c) 0.5 (d) none of them

19. x is a Poisson variate and P(x = 1) = P(x = 2), find P(x = 0) is


(a) e–2 (b) e–0.5
(c) e–1 (d) none of them

20. x is a Poisson variate and P(x = 2) = 9.P(x = 4) + 90.P(x = 6) then its mean is
(a) 4 (b) 3
(c) 1 (d) none of them

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21. The number of accidents in a year attributed to taxi drivers in a city follows poisson
distribution with mean 3. Out of 1000 taxi drivers, the number of drivers with no
accident in a year is (e–3 = 0.0498)
(a) 40 (b) 30
(c) 50 (d) none of them

22. The number of accidents in a year attributed to taxi drivers in a city follows poisson
distribution with mean 3. Out of 1000 taxi drivers, the number of drivers with at
least 3 accidents in a year is(e–3 = 0.0498)
(a) 477 (b) 377
(c) 177 (d) none of them

23. The average number of customers, who appear at a counter of a certain bank per
minute is 2, the probability that during a given minute three or more customers
appear is (e–2 = 0.1353)
(a) 0.32354 (b) 0.1353
(c) 1 (d) none of them

24. If the standard deviation of a Poisson variate X is 2, what is P (1.5 < X < 2.9)?
(a) 0.231 (b) 0.158.
(c) 0.15. (d) 0.144.

25. If the mean of a Poisson variable X is 1, what is P (X = takes the value at least 1)?
(a) 0.456. (b) 0.821.
(c) 0.632. (d) 0.254.

26. If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would
assume only non-zero values?
(a) 0.018. (b) 0.982.
(c) 0.989. (d) 0.976.

27. If for a Poisson variable X, f(2) = 3 f(4), what is the variance of X?


(a) 2. (b) 4.
(c) √2 (d) 3.

468
CA FOUNDATION STATISTICS

28. A random variable x follows Poisson distribution and its coefficient of variation is
50. What is the value of P (x > 1 / x > 0)?
(a) 0.1876 (b) 0.2341
(c) 0.9254 (d) 0.8756

29. A car hire firm has 2 cars which is hired out every day. The number of demands per
day for a car follows Poisson distribution with mean 1.20. What is the proportion of
days on which some demand is refused? (Given e1.20 = 3.32).
(a) 0.25 (b) 0.3012
(c) 0.12 (d) 0.03

ANSWERS

1. (c) 11. (c) 21. (c)


2. (b) 12. (a) 22. (d)
3. (c) 13. (c) 23. (a)
4. (d) 14. (b) 24. (d)
5. (b) 15. (c) 25. (c)
6. (a) 16. (a) 26. (b)
7. (b) 17. (c) 27. (a)
8. (d) 18. (a) 28. (c)
9. (b) 19. (a) 29. (c)
10. (a) 20. (c)

469
CA FOUNDATION STATISTICS

HOMEWORK SOLUTION
POISSON DISTRIBUTION

1. P (defective) = 2% = 0.02
n = 50 P (Atmost 2 defective) =?
m = np
= 50 x 0.02

(c)

2. m=3
P (not more than two) = P (x 2) =?
P (y 2) = P (x = 0) + P (x = 1) + P (x = 2)



= e3 (8.5)
= 8.5 x 0.0498 = 0.4233 (b)

470
CA FOUNDATION STATISTICS

3. P=
n = 50
m = np


= 0.5
e-0.5 = 0.61
Number of boxes with zero stick without head


= e-0.5
= 0.61
= 61% (c)
4. P =
n = 50
m = np


= 0.5
Number of boxes having 1 stick without head


= 0.5 x e-0.5
= 0.5 x 0.61
= 0.305 (d)

471
CA FOUNDATION STATISTICS

5. P=

n = 50
m = np


= 0.5
2 sticks of without head


= 0.076
= 7.63% (a)

6. P (defective) = 2% = 0.02
n = 200
m = np
= 200 x 0.02


m=4
P (Atmost 2 defective)
P (x 2) = P (x = 0) + P (x = 1) + P (x = 2)






= 13 x 0.0183
= 0.2379 ≈ 0.238 (a)

472
CA FOUNDATION STATISTICS

7. P = 2% = 0.02
n = 200
m = np
= 200 x 0.02

m=4
P (x = 3 defective)


= 0.1952 (b)

8. P (defective) = 5% = 0.05
n = 100
m = np
= 100 x 0.05


m=5
P (x = not more than 4 defective) = P (x 4)
= P (x = 0) + P (x = 1) + P (x = 2) + P (x = 3) + P (x = 4)


= 0.0067 (1 + 5 + 12.5 + 20.83 + 26.041)
= 0.43798 ≈ 0.4380
(d)

473
CA FOUNDATION STATISTICS

9. P (defective) = 3% = 0.03
n = 100
m = np
= 100 x 0.03


m=3
e-3 = 0.0498


= 0.1008 (b)

10. P (Special room demand) = 3% = 0.03


n = 50
m = np
= 50 x 0.03
m = 1.5
P (demand for special room is not met) = P (x > 3)
(Means demand is more than 3)
= 1 – [P(x = 0) + P(x = 1) + P(x = 2) + P(x =3)]


= 1 – e-1.5 [(1) + (1.5) + (1.125) + (0.5625)]
= 1 – 0.2231 [4.1875]
= 1 – 0.93423
= 0.0658 (a)

474
CA FOUNDATION STATISTICS

11. P =

n = 100
m = np


= 0.6
P (x > 2) = [P(x = 0) + P(x = 1) + P (x = 2)]
More than 2 mix prints


= 1 – 0.54688 (1.78)
= 1 – 0.9768
= 0.0231
Number of paper = N x P
= 100 x 0.0231
= 2.31 (c)

12. P (defective) = 0.5%


n = 100
m = np


m = 0.5
P (2 or more defective)
P (x 2) = 1 – [P(x = 0) + P(x = 1)]


=1 – e-0.5 [1 + 0.5]
=1 – 0.6065 (1.5)
=1 – 0.90975
= 0.0902 (a)

475
CA FOUNDATION STATISTICS

13. m = 2
P(x > 0) = ?
(e2 = 0.1353)
P (x > 0) = 1 - P(x = 0)


= 1 – e-2
= 1 – 0.1353
= 0.8647 (c)

14. m = 0.81
then S.D = ?


= 0.9 (b)

15. P(x = 3) = P(x = 4)


m = mean =?


mean = m = 4 (c)




4=m

476
CA FOUNDATION STATISTICS

16. P(x = 1) = P(x = 2)


Variance =?


Variance = m
Variance = 2 (a)




m = 2

17. P(x = 3) = P(x = 4)


S.D. =?


m=4

= 2 (c)

18. P(x = 0) = P(x = 1) = K


K = ?


= 0.3681 (a)

477
CA FOUNDATION STATISTICS

19. P(x = 1) = P(x = 2)


P(x = 0) = ?


m = m2



= e-2 (a)

20. P (x = 2) = 9 P (x = 4) + 90 P (x = 6)
m=?


Take 1 cm


= 12m2 = 9m4 + 3m6
Use Pinto m = 1
12(1)2 = 9(1)2 + 3(1)6
12 = 9 + 3
12 = 12
m=1

478
CA FOUNDATION STATISTICS

21. m = 3
e-3 = 0.0498
n = 1000
P (x = drivers with no accident)


= 0.0498
Number of drivers = N x P
= 1000 x 0.0498
= 49.8
≈ 50 (c)

22. m = 3
n = 1000
P (x = At least 3 Accidents) = P (x 3)
= P (x 3) = 1 – [P (x = 0) + P (x = 1) + P (x = 2)]


= 1 – e-3 [8.5]
= 1 – 0.0498 x 8.5
= 0.5767
Number of drivers = 1000 x 0.05767
= 576.7
= 578 (d)

479
CA FOUNDATION STATISTICS

23. m = 2
e-2 = 0.1353
P (3 more customers)
= P (x 3) = 1 – [P (x = 0) + P (x = 1) + P (x = 2)]


= 1 – e-2 [1 + 2 + 2]
= 1 – 5e-2
= 1 – 5 x 0.1353
= 0.3235 (a)

24. S.D. = 2


4=m
P (1.5 < x < 2.9) = ?



= 0.1465 ≈ 0.15
(c)

480
CA FOUNDATION STATISTICS

25. m = 1
P (x = takes value at least 1)
P (x 1) = 1 – P (x = 0)


= 0.632 (c)

26.

481
CA FOUNDATION STATISTICS

27.





28.

482
CA FOUNDATION STATISTICS

29.
2 cars available
m=1.2 (given)
P(Demand is refused)
(The demand is refused when demand is more than 2)

483
CA FOUNDATION STATISTICS

484
CA FOUNDATION STATISTICS

HOMEWORK SECTION
NORMAL DISTRIBUTION

1. An approximate relation between Q.D. and S. D. of normal distribution is :


(a) 3 Q.D. = 2 S. D. (b) 4 Q.D. = 5 S. D.
(c) 2 Q.D = 3 S. D. (d) 5 Q. D. = 4 S. D.

2. A approximate relation between M. D. about mean and S.D. of a normal distribution


is :
(a) 4 M.D. = 5 S. D. (b) 5 M.D. = 4 S. D.
(c) 3 M.D. = 3 S.D. (d) 3 M.D. = 2 S. D.

3. The area under the standard normal curve beyond the lines 1.96 is
(a) 95% (b) 90%
(c) 99.73% (d) 5%

4. If Z is a standard normal variate, the proportion of items lying between Z = – 0.5


and Z = – 3.0 is
(a) 0.5 (b) 0.1915
(c) 0.3172 (d) 0.3072

5. If X is a normal variate representing the income in ` per day with mean = 50 and S.D.
= 10 of the workers in a factory. The total number of workers is 1000. The number
of workers having income more than ` 62.00 per day is
(a) 246 (b) 150
(c) 738 (d) 115

6. Assume that distribution of diameters of shafts as normal with mean = 5 and S. D.


= 0.05. The tolerance limit of shafts is 4.90 to 5.10 cms. In a consignment of 200
shafts, the number of shafts out of tolerance limits is :
(a) 15 (b) 9
(c) 20 (d) 25
[Given; z = 0 to z = 2 is 0.4772]

485
CA FOUNDATION STATISTICS

7. The mean of a normal variate is 20 and its variance is 9. The area between the
values of the variate 15.5 and 21.5 is
(a) 0.6247 (b) 0.2857
(c) 0.0228 (d) 0.9332

8. The mean of a normal variate is 20 and its variance is 9. The area between the
values of the variate 14 and 18.5 is
(a) 0.6247 (b) 0.3072
(c) 0.0228 (d) 0.9332

9. The mean of a normal variate is 20 and its variance is 9. The area for the values of
variate more than 26 is
(a) 0.6247 (b) 0.2857
(c) 0.0228 (d) 0.9332

10 . In an intelligence test administered to 1000 children the average score is 42 and its
s.d. is 24. Assuming that the scores are normally distributed, the minimum score of
the most intelligent 100 students is
(a) 371 (b) 383
(c) 72.7 (d) none of them

11. The customer accounts at a certain departmental store have an average balance
of ` 120 and a standard deviation of ` 40. Assuming that account balances are
normally distributed, what percentage of the accounts are over `150?
(a) 25.5 (b) 22.66
(c) 72.7 (d) 46.49

12. The customer accounts at a certain departmental store have an average balance of
`120 and a standard deviation of `40. Assuming that account balances are normally
distributed,what percentage of the accounts are between `100 and `150?
(a) 25.5 (b) 22.66
(c) 72.7 (d) 46.49

486
CA FOUNDATION STATISTICS

13. The average life of a battery is 400 hours and its standard deviation is 50 hours.
Assuming normal distribution, the percentage of batteries having life more than
350 hours is
(a) 84.13 (b) 22.66
(c) 72.7 (d) 46.49

14. The average life of a battery is 400 hours and its standard deviation is 50 hours.
Assuming normal distribution, approximate after how many hours 25% of the
batteries will still be working?
(a) 284 (b) 422
(c) 372 (d) 434

15. The average life of a battery is 400 hours and its standard deviation is 50 hours.
Assuming normal distribution, the percentage of batteries with life time between
300 and 500 hours is
(a) 84.13 (b) 22.66
(c) 95.44 (d) 19.35

16. In a normal distribution 50% of the observations are less than 35 and 89% of the
observations are less than 63. The mean of the distribution is
(a) 63 (b) 35
(c) 89 (d) none of them

17. In a normal distribution 50% of the observations are less than 35 and 89% of the
observations are less than 63. The standard deviation of the distribution is
(a) 63 (b) 35
(c) 89 (d) none of them

18. The mean and S.D. of a normal variate are 30 and 5 respectively, the probability of
| x – 30 | < 5 is
(a) 0.6826 (b) 0.0013
(c) 0.7653 (d) none of them

487
CA FOUNDATION STATISTICS

19. The distribution of marks of the students in a class is normal with mean 20 and
s.d. 5. The number of students getting more than 25 marks is 50. The number of
students of that class is
(a) 682 (b) 653
(c) 315 (d) none of them

20. What is the coefficient of variation of x, characterised by the following probability


density function: f(x) = for–∝<x<∝
(a) 50. (b) 60.
(c) 40. (d) 30.

21. What is the first quartile of X having the following probability density function?


(a) 4. (b) 5.
(c) 5.95. (d) 6.75.

22. In a sample of 800 students, the mean weight and standard deviation of weight
are found to be 50 kg and 20 kg respectively. On the assumption of normality, what
is the number of students weighing between 46 Kg and 62 Kg? Given area of the
standard normal curve between z = 0 to z = 0.20 = 0.0793 and area between z = 0
to z = 0.60 = 0.2257.
(a) 250 (b) 244
(c) 240 (d) 260

23. The salary of workers of a factory is known to follow normal distribution with an
average salary of ` 10,000 and standard deviation of salary as ` 2,000. If 50 workers
receive salary more than ` 14,000, then the total no. of workers in the factory is
(a) 2,193 (b) 2,000
(c) 2,200 (d) 2,500

24. For a normal distribution with mean as 500 and SD as 120, what is the value of k
so that the interval [500, k] covers 40.32 per cent area of the normal curve? Given
φ (1.30) = 0.9032.
(a) 740 (b) 750
(c) 656 (d) 800

488
CA FOUNDATION STATISTICS

25. 50 per cent of a certain product have weight 60 kg or more whereas 10 per cent
haveweight 55 kg or less. On the assumption of normality, what is the variance of
weight?
Given φ (1.28) = 0.90.
(a) 15.21 (b) 9.00
(c) 16.00 (d) 22.68

ANSWERS

1. (a) 6. (b) 11. (b) 16. (b) 21. (c)


2. (b) 7. (a) 12. (d) 17. (d) 22. (b)
3. (d) 8. (b) 13. (a) 18. (a) 23. (a)
4. (d) 9. (c) 14. (d) 19. (c) 24. (c)
5. (d) 10. (c) 15. (c) 20. (c) 25. (a)

489
CA FOUNDATION STATISTICS

HOMEWORK SOLUTION
NORMAL DISTRIBUTION

1. QD =

3QD = 2SD (a)

2. MD =

5MD = 4SD (b)

3.

Beyond the lines 1.96 5% Area (d)

4.

Area between = z = -0.5 to z = -3 = 0.4987


– 0.1915
0.3072

490
CA FOUNDATION STATISTICS

5. µ = 50
σ = 10
N = 1000
P (x 62) = ?


z = 1.2


P (x 62) =? = 0.5 - 0.3849
= 0.1151
Number of workers = N x P
= 1000 x 0.1151 ≈ 115
(d)

491
CA FOUNDATION STATISTICS

6. µ=5
σ = 0.05 Tolerance limit 4.90 cm to 5.10 cm.
N = 200 x1 x2




z1= -2



z2

z2= +2



% of shafts within the limits = 0.4772 + 0.4772
= 0.9544
Number of shafts within limits = N x P
= 200 x 0.9544
= 190.88
= 191
Number of shafts out of tolerance limits = 200 – 191
= 9
(b)

492
CA FOUNDATION STATISTICS

7. µ = 20
σ2 = 9
σ = 3
Area between 15.5 and 21.5 = ?



z2= +0.5

Area between 15.5 and 21.5 = 0.4332 + 0.1915


= 0.6247 (a)

493
CA FOUNDATION STATISTICS

8. µ = 20
σ2 = 9
σ = 3
Area between 14 and 18.5 =?

Area between 14 and 18.5 = 0.4987


– 0.1915
= 0.3072 (b)

494
CA FOUNDATION STATISTICS

9. µ = 20
σ2 = 9
σ = 3
Area about more than 26?

z1

z1

z1 = 2


Area above 26 = 0.5 – 0.4772
= 0.0228 (c)

10. N = 1000
µ = 42
σ = 24


z=0 z =?
µ = 42 Most intelligent 100 students
Area =
z for value (Area) 0.4 = 1.28



1.28 x 24 + 42 = x
x = 72.72 (c)

495
CA FOUNDATION STATISTICS

11. µ = 120
σ = 40
P (x 150) = ?

z = 0.75

P (x 150) = 0.5 – 0.2734


= 0.2266
= 22.66% (b)

496
CA FOUNDATION STATISTICS

12. µ = 120
σ = 40
Percentage of accounts between 100 and 150 = ?
P (100 x150) = ?

z1

z1

z1 = - 0.5

z2

z2

z2 = 0.75

P (100 x 150) = 0.1915 + 0.2734


= 0.4649
= 46.49% (d)

497
CA FOUNDATION STATISTICS

13. µ = 400
σ = 50
P (x 350) = ?

z


z

z=-1


P (x 350) = 0.5 + 0.3413
= 0.8413
= 84.13% (a)

14. µ = 400
σ =50






0.67 x 50 + 400 = x
X = 433.5 ≈ 434
After 434 hrs 25% of batteries will be still working.

498
CA FOUNDATION STATISTICS

15. µ = 400
σ = 50
P (300 x 500) = ?

z1

z1

z1 = - 2

z2

z2

z2 = 2

P (300 x 500) = 0.4772 + 0.4772


= 0.9544
= 95.44% (c)

499
CA FOUNDATION STATISTICS

16.



Find the mean µ?





1.22 σ = 63 - µ
µ + 1.22 σ = 63 (1)


0 = 35 - µ
µ = 35 (b)

17. Put µ = 35 in Eqn 1


35 + 1.22 σ = 63
1.22 σ = 63 - 35
1.22 σ = 28
= 22.9
= 30 (d) None

500
CA FOUNDATION STATISTICS

18.



z2 = 1



(a)

501
CA FOUNDATION STATISTICS

19. µ = 20
σ = 5
Marks more than 25 there are 50 students.
Let N be the no. of students of the class.


Probability of std getting more than 25 marks =
=z=1


P (x > 25) = 0.5 – 0.3414
= 0.1587

P (x > 25) =

0.1587 =

Number of students in class N = 315

502
CA FOUNDATION STATISTICS

20.

Standard function

On comparing σ = 4, µ = 10


= 40% (c)

21.


Q1 = µ - 0.6745 σ
= 10 – 0.6745 (6)
= 5.95 (c)

503
CA FOUNDATION STATISTICS

22. N = 800
µ = 50
σ = 20
P (46 x 62) = ?


= +0.6

P (46 x 62) = 0.0793 + 0.2557


= 0.305
Number of student = N x P
= 800 x 0.305
= 244

504
CA FOUNDATION STATISTICS

23. µ = 10000
σ =2000
50 Workers are more than 14000
Total no. of workers =?



σ = 3.906
Variance = σ2
= (3.906)2
= 15.256
= 15.21

505
CA FOUNDATION STATISTICS

z

z=2
for z = 2
area from z = 0 to z = 2 is 0.4772
P (x 14000) = 0.5 – 0.4772
= 0.0228



= 2192.98 ≈ 2193
(a)

24.
µ = 500
σ = 120 [500, k] area between the two limits is 40.32%
k=?
ᶲ (1.30) = 0.9032


1.30 x 1.20 + 500 = k
k = 656
(c)

506
CA FOUNDATION STATISTICS

25. P (x 60) = 0.5 5%


P (x 55) = 0.1 10%
Variance = ?


0 = 60 - µ
µ = 60



σ = 3.906
Variance = σ2
= (3.906)2
= 15.256
= 15.21 (a)

507
CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 12


BINOMIAL DISTRIBUTION
20 Marks

1. When there are a fixed number of repeated trial of any experiments under identical
conditions for which only one of two mutually exclusive outcomes, success or failure
can result in each trial then
a) Normal distribution b) Binomial distribution
c) Poisson distribution d) None is used

2. The method usually applied for fitting a binomial distribution is known as


a) Method of least square
b) Method of moments
c) Method of probability distribution
d) Method of distributions

3. The variance of a binomial distribution with /parameters n and p is


a) b)
c) d)

4. In Binomial distribution
a) Mean is greater than variance b) Mean is less than variance
c) Mean is equal to variance d) None

5. If x is a binomial variable with parameters n and p, then x can assume


a) Any value between 0 and n.
b) Any value between 0 and n, both inclusive.
c) Any whole number between 0 and n, both inclusive.
d) Any number between 0 and infinity.

6. If in Binomial distribution np=9 and npq=2.25 then p and n are equal to is equal to
a) 0.25,36 b) 0.75, 12
c) 1,9 d) None

508
CA FOUNDATION STATISTICS

7. A random variable x follows Binomial distribution with E(X) = 2 and V(X)=1.2. Then
the value of n is
a) 8 b) 2 c) 5 d) None

8. if in a binomial distribution n = 4, P(X=0) = 16/81 then P(X=4) is


a) 1/16 b) 1/81 c) 1/27 d) 1/8

9. X is a binomial variable with n = 20. What is the mean of X if it is know that x is


symmetric?
a) 5 b) 10 c) 2 d) 8

10. What is the probability of making 3 correct guesses in 5 True-False answer type
questions?
a) 0.3125 b) 0.5676 c) 0.6875 d) 0.4325

11. In 10 independent rollings of a biased dice, the probability that an even number will
appear 5 times is twice the probability that an even number will appear 4 times.
What is the probability that an even number will appear twice when the die is rolled
8 times?
a) 0.0304 b) 0.1243 c) 0.2315 d) 0.1926

12. What is the probability of having at least one ‘six’ from 3 throws of a perfect die?
a) 5/6 b) (5/6)3
c) 1 - (1/6)3 d) 1 - (5/6)3

13. A coin is tossed 10 times. Assuming the coin to be unbiased, what is the probability
of getting at least 4 heads?

a) b)

c) d)

14. If 15 dates are selected at random, what is the probability of getting two Sundays’
a) 0.36 b) 0.44 c) 0.29 d) 0.57

509
CA FOUNDATION STATISTICS

15. An experiment succeeds thrice as often as it fails. If the experiment is repeated 5


times, what is the probability of having no success at all?
a) 1/1024 b) 1/256
c) 243/1024 d) None of these

16. X is a binomial variable such that 2 P(X=2) = P(X=3) and mean of X is known to be
10/3. What would be the probability that X assumes at most the value 2?
a) 16/81 b) 17/81 c) 47/2473 d) 46/243

17. Standard Deviation of binominal distribution is


a) npq b) (npq)2 c) d) n2p2q2

18. For a Binomial distribution mean is 4 and variance is 3 then, 3rd central moment is
a) 1.5 b) 0.15 c) 15 d) 0.75

19. In a binomial distribution n =4, p =1/3 then the value of variance is


a) 2/3 b) 8/9 c) 4/3 d) none

20. In a binomial distribution mean = 20, S.D . =4, then q is equal to


a) 1/2 b) 1/5 c) 3/4 d) 4/5

Answer Key

1. b 2. b
3. c 4. a
5. c 6. b
7. c 8. b
9. b 10. a
11. a 12. d
13. c 14. c
15. a 16. b
17. c 18. b
19. b 20. d

510
CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS
1. Binominal Distribution (b)

2. Method of moments (b)

3. Variance = npq (c)


= np (1 -p)

4. Mean > Variance (a)

5. Any whole number between 0 and n, both inclusive. (c)

6. np = 9 ... ... ... (i)


Npq = 2.25 ... ... (ii)
From (i) and (ii) we get
9 (q) = 2.25
q = 0.25
p = 0.75
We know,
np = 9
n(0.75) = 9
n = 12 (b)

7. E(x) = 2 v(x) = 1.2


np = 2 npq = 1.2
We get 2(q) = 1.2
n (0.4) = 2
n = 5 (c)

511
CA FOUNDATION STATISTICS

8. p(x = 0) = given n = 4



(b)

9. x is symmetric data


n = 20 given
mean = np


mean = 10 (b)

512
CA FOUNDATION STATISTICS

10. n = 5
x=3

(a)

11. p(x = 5) = 2p(x = 4) given n = 10


3p = 5 (1 - p)
3p = 5 – 5p
8p = 5


Success getting even no.
n=8
x=2


= 0.0304 (a)

513
CA FOUNDATION STATISTICS

12. Success getting six


n=3
x 1


P (x 1) = 1 – p(x = 0)



(d)

13. Success Getting Heads


n = 10
x 4


P (x 4) = 1 – [P (x = 0) + P (x = 1) + P (x = 2) + P (x = 3)



(c)

514
CA FOUNDATION STATISTICS

14. Success getting Sunday


n = 15
x=2


= 0.29 (c)

15. p = 3(q)
q = 3(1 - p)
p = 3 – 3p
4p = 3

(a)

515
CA FOUNDATION STATISTICS

16. mean =




n=5
p (x 2)
= p (x = 0) + p (x = 1) + p (x = 2)

(b)

17. SD = (c)

516
CA FOUNDATION STATISTICS

18. mean = 4 variance = 3


np = 4 npq = 3
(4) q = 3


3rd central moment = np (1 - p) (1 – 2p)




(a)
19. n = 4


Variance = npq



(b)

20. mean = 20
np = 20
SD = 4
Variance = 16
npq = 16
20(q) = 16

(d)

517
CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 13


POISSON DISTRIBUTION
20 Marks

1. A binomial distribution with parameters n and p can be approximated by a Poisson


distribution with parameter m = np is
a) n
b) p 0
c) n and p 0
d) n and p 0 so that np remains finite

2. For Poisson fitting to an observed frequency distribution,


a) We equate the Poisson parameter to the mean of the frequency distribution
b) We equate the Poisson parameter to the median of the distribution
c) We equate the Poisson parameter to the mode of the distribution
d) None of these

3. In Poisson distribution -
a) Mean and SD are equal b) Mean, Variance are equal
c) SD and Variance are equal d) Both (a) and (b)

4. Poisson distribution may be


a) Always symmetric
b) Always positively skewed
c) Always negatively skewed
d) Symmetric only when m = 2

5. Find the mean and variance of x where x is a Poisson variate satisfying the condition
P (x = 2) = P (x = 3).
a) 2 b) 3 c) 4 d) 5

6. X is a Poisson variate satisfying the following relation:
P (X = 2) = 9 P (x = 4) + 90P (X = 6).
What is the standard deviation of X?
a) 1 b) 2 c) 1.55 d) 1.87

518
CA FOUNDATION STATISTICS

7. A discrete random variable x follows Poisson distribution. Find the value of


P (X = atleast 1). You are given that E (x) = 2.20 and e-2.20 = 0.1108 .
a) 0.45 b) 0.78
c) 0.89 d) 0.65

8. A discrete random variable x follows Poisson distribution. Find the value of


P (X ≤ 2/x ≥ 1). You are given that E (x) = 2.20 and e-2.20
= 0.1108.
a) 0.58 b) 0.64
c) 0.89 d) 0.76

9. If 1.5% of items produced by a manufacturing unit are known to be defective, what


is the probability that a sample of 200 items would contain no defective item?
a) 0.05 b) 0.15
c) 0.20 d) 0.22

10. If 2 per cent of electric bulbs manufactured by a company are known to be defectives,
what is the probability that a sample of 150 electric bulbs taken from the production
process of the company would contain exactly one defective bulb?
a) 0.15 b) 0.86
c) 0.74 d) 0.23

11. The standard deviation of Poisson variate is 1.732. what is the probability that the
variable lies between -2.3 to 3.68?
a) 0.55 b) 0.65
c) 0.75 d) 0.85

12. The manufacturer of a certain electronic component is certain that two per cent of
his product is defective. He sells the components in boxes of 120 and guarantees
that not more than two per cent in any box will be defective. Find the probability
that a box, selected at random, would fail to meet the
guarantee? Given that e-2.40 = 0.0907.
a) 0.26 b) 0.52
c) 0.43 d) 0.86

519
CA FOUNDATION STATISTICS

13. Between 9 and 10 AM, the average number of phone calls per minute coming into
the switchboard of the company is 4. Find the probability that during one particular
minute there will be no phone calls.
a) 0.045445 b) 0.02454
c) 0.018316 d) 0.047251245

14. The number of accidents in a year attributed to taxi drivers in a locality follows
Poisson distribution with an average 2. Out of 500 taxi drivers of that area, what is
the number of drivers with atleast 3 accidents in a year?
a) 162 b) 180
c) 201 d) 190

15. A random variable X follows Poisson Distribution, such that P(X = k) = P(X = k + 1),
then its mean and variance is:
a) k – 1, k – 1 b) k + 2, k + 2
c) k + 3, k + 3 d) k + 1, k + 1

16. Which one is Uniparametric distribution?


a) Binomial b) Poisson
c) Normal d) Hyper Geometric

17. Number of misprints per page of a thick book follows:


a) Normal Distribution b) Poisson Distribution
c) Binomial Distribution d) Standard Normal Distribution

18. _____ Distribution is a limiting case of Binomial Distribution


a) Normal b) Poisson
c) Both d) None

19. In Poisson Distribution np is


a) finite b) infinite
c) 0 d) none

520
CA FOUNDATION STATISTICS

20. In Poisson Distribution mean is equal to


a) ( ) b)
c) d)

Answer Key

1.                               d  2.                               a 
3.                               b  4.                               b 
5.                               b  6.                               a 
7.                               c  8.                               a 
9.                               a  10.                              a 
11.                              b  12.                              c  
13.                              c   14.                              a 
15.                              d  16.                              b 
17.                              b  18.                              c  
19.                              a  20.                              a 

521
CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS

1. n and p 0 so that np remains finite (d)


2. We equate the Poisson parameter to the mean of the frequency distribution (a)
3. Mean, Variance are equal (b)
4. Always positively skewed (b)

5. p(x = 2) = p (x = 3) make correction means ans Variance




m=3
mean = np m = 3
SD =
Variance = np = m = 3 (b)

6. P (x = 2) = 9P (x = 4) + 90P (x = 6)






m4 + 3m2 – 4 = 0
m4 + 4m2 – m2 – 4 = 0
m2 (m2 + 4) – 1 (m2 – 4) = 0
m2 = 4 or m2 = –1
not possible m= 1
m = 1 or m = -1 not possible
m=1
mean = 1
S.D. = = 1 (a)

522
CA FOUNDATION STATISTICS

7. E(x) = 2.20
mean = m = 2.20
e-2.20 = 0.1108
p (at least one)
p (x 1)
= 1 – p (x = 0)


= 1 – 0.1108
= 0.8892
= 0.89 (c)

8. P (x 2/x 1)


= 0.57568
= 0.58 (a)

9. m=nxp


m=3
p (x = 0)


= 0.0498
= 0.05 (a)

523
CA FOUNDATION STATISTICS

10. m=nxp


m=3
p (x = 1)


= 0.1494
= 0.15 (a)

11. SD = = 1.732
m = 3
P (-2.3 < x < 3.68)
P (x = 0) + P (x = 1) + P (x = 2) + P (x = 3)


= 0.0498 [1 + 3 + 4.5 + 4.5]
= 0.6474
= 0.65 (b)

12. If x > 2.4 then guarantee would fail


m = 2.4
P (x > 2.4)
= 1 – P (x = 0) + P (x = 1) + P (x = 2)]


= 1 – 0.0907 [1 + 2.4 + 2.88]
= 0.4304
= 0.43 (c)

524
CA FOUNDATION STATISTICS

13. m=4
p (x = 0)


= 0.018316 (c)

14. m=2
P (x 3)
= 1 – [P (x = 0) + P (x = 1) + P (x = 2)]


= 0.3233
Expected no. of taxi drivers
= 500 x 0.3233
= 161.66
≈ 162 (a)

15. P (x = k) = P (x = k + 1)


m = k + 1
mean = k + 1
Variance = k + 1 (d)

16. Poisson (b)

17. Poisson Distribution (b)

18. Poisson and Normal (c)

19. finite (a)

20. ( ) (a)

525
CA FOUNDATION STATISTICS

SELF ASSESSMENT TEST 14


NORMAL DISTRIBUTION
20 Marks

1. Which of the following is false in case of Normal Distribution?


a) It is Multi model b) Mean = Median = Mode
c) It is Symmetric d) Total area is 1

2. In continuous probability distribution F(x) is called


a) Frequency distribution function b) Cumulative distribution function
c) Probability density function d) None

3. Probability density function is associated with which of the following variable.


a) Discrete b) Continuous
c) Both d) None

4. Whatever may be the parameter of ______ distributor, it has same shape.


a) Normal b) Binomial
c) Poisson d) None

5. The normal curve is


a) Positively skewed. b) Negatively skewed.
c) Symmetrical. d) All of these.

6. For a standard normal distribution, the points of inflexion are given by


a) µ - s and µ + s b) -s and s
c) -1 and 1 d) 0 and 1

7. for the two quartiles of N (µ, ) are 14.6 and 25.4 respectively, what is the standard
deviation of the distribution?
a) 9 b) 6
c) 10 d) 8

8. in a Normal Distribution the relation between QD and SD is –


a) 3 QD = 2 SD b) 3 SD = 2 QD
c) 4 QD = 3 SD d) None of these.

526
CA FOUNDATION STATISTICS

9. The interval (µ - 3s , µ + 3s) covers


a) 95% area of a normal distribution
b) 96% area of a normal distribution
c) 99% area of a normal distribution
d) All but 0.27% area of a normal distribution

10. The probability density function of a normal variable x is given by

a)

b)

c)

d) None of these

11. Find the points of inflexion of the normal curve

a) 7 and 13 b) 8 and 12
c) 6 and 14 d) 5 and 15

12. The distribution of wages of a group of workers Is known to be normal with mean
` 500 and SD ` 100. If the wages of 100 workers in the group are less than ` 430,
what is the total number of workers in the group?
a) 289 b) 413
c) 568 d) 318

13. A discrete random variable x follows uniform distribution and takes the values 6, 8,
10, 12, 18. The probability of P(x≤12) is
a) 1/5 b) 4/5
c) 3/5 d) None

527
CA FOUNDATION STATISTICS

14. A continuous random variable x follows uniform distribution with probability density
function f(x)=1/2, (4<x<6). Then P(4≤x≤5)
a) 0.1 b) 0.5
c) 0 d) None

15. If the mean deviation of a normal variable is 16, what is its quartile deviation?
a) 10.00 b) 13.50
c) 15.00 d) 12.05

16. If X and Y are 2 independent normal variables with mean as 10 and 12 and SD as 3
and 4, then (X+Y) is normally distributed with
a) Mean = 22 and SD =7 b) Mean = 22 and SD = 25
c) Mean = 22 and SD =5 d) Mean = 22 and SD =49

17. The salary of workers of a factory is known to follow normal distribution with an
average salary of `10,000 and standard deviation of salary as `2,000. If 50 workers
receive salary more than `14,000, then the total no. of workers in the factory is
a) 2,193 b) 2,000
c) 2,200 d) 2,500

18. 50% of a certain product have weight 60 kg or more whereas 10% have weight 55%
or less assumption of normality, what is the variance of weight? Given f (1.28) =
0.90.
a) 15.21 b) 9.00
c) 16.00 d) 22.68

19. Under normal curve: µ ± 3s covers_____ of the area of items


a) 100% b) 99%
c) 99.73% d) 99.37%

20. For a standard normal distribution, the points of inflexion are:


a) -1 to +1
b) - s to + s
c) µ - s
d) The distribution has no points of inflexion

528
CA FOUNDATION STATISTICS

Normal Distribution Answer Key

1. a 11. b
2. c 12. a
3. c 13. c
4. c 14. a
5. d 15. a
6. c 16. b
7. d 17. b
8. b 18. b
9. a 19. a
10. c 20. a

529
CA FOUNDATION STATISTICS

EXPLANATORY
ANSWERS

1. It is Multi model (a)

2. Cumulative distribution function (b)

3. Continuous (b)

4. Normal (a)

5. Symmetrical. (c)

6. -1 and 1 (c)

7. 8 (d)

8. (a) 3QD = 2SD

9. All but 0.27% area of a normal distribution (d)

10. (a)

11. (c) By Comparing with normal formula


s=4
µ = 10
Points of inflexion are µ - 6 and µ + 6
i.e. 6 and 14

530
CA FOUNDATION STATISTICS

12.

s


z = - 0.7
z=0
Area between z = 0 and z = -0.7 = 0.2580
Area of wages below ` 430 = 0.5 – 0.2580
= 0.2420


Total no. of worker



= 413.22 ≈ 413

13. (b) p (x 12)


= p (x = 6) + p (x = 8) + p (x = 10) + p (x = 12)

14. (b) required probability =



= 0.5

531
CA FOUNDATION STATISTICS

15. (b) QD : MD = 10 : 12


= 13.33
≈ 13.50

16. (c) mean = 10 + 12 = 22

17. (a)

σ = 2000


z=2
z=0
Area between z = 0 and z = 2 = 0.4772
Area of salary more than ` 14000 = 0.5 – 0. 4772
= 0.0228

Total no. of worker =


= 2193

532
CA FOUNDATION STATISTICS

18. (a)

z = -1.28





Variance = 15.21

19. 99.73% (c)

20. -1 to +1 (a)

533
CA FOUNDATION STATISTICS

APPENDIX

Table I Area Under Standard Normal Curve


(Proportion of area under standard normal curve between the
ordinates at z = 0 and given values of z)
z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09
0.0 .0000 .0040 .0080 .0120 .0160 .0199 .0239 .0279 .0319 .0359
0.1 .0398 .0438 .0478 .0517 .0557 .0596 .0636 .0675 .0714 .0753
0.2 .0793 .0832 .0871 .0910 .0948 .0987 .1026 .1064 .1103 .1141
0.3 .1179 .1217 .1255 .1293 .1331 .1368 .1406 .1443 .1480 .1517
0.4 .1554 .1591 .1628 .1664 .1700 .1736 .1772 .1808 .1844 .1879
0.5 .1915 .1950 .1985 .2019 .2054 .2088 .2123 .2157 .2190 .2224
0.6 .2257 .2291 .2324 .2357 .2389 .2422 .2454 .2486 .2517 .2549
0.7 .2580 .2611 .2642 .2673 .2704 .2734 .2764 .2794 .2823 .2852
0.8 .2881 .2910 .2939 .2967 .2995 .3023 .3051 .3078 .3106 .3133
0.9 .3159 .3186 .3212 .3238 .3264 .3289 .3315 .3340 .3365 .3389
1.0 .3413 .3438 .3461 .3485 .3508 .3531 .3554 .3577 .3599 .3621
1.1 .3643 .3665 .3686 .3708 .3729 .3749 .3770 .3790 .3810 .3830
1.2 .3849 .3869 .3888 .3907 .3925 .3944 .3962 .3980 .3997 .4015
1.3 .4032 .4049 .4066 .4082 .4099 .4115 .4131 .4147 .4162 .4177
1.4 .4192 .4207 .4222 .4236 .4251 .4265 .4279 .4292 .4306 .4319
1.5 .4332 .4345 .4357 .4370 .4382 .4394 .4406 .4418 .4429 .4441
1.6 .4452 .4463 .4474 .4484 .4495 .4505 .4515 .4525 .4535 .4545
1.7 .4554 .4564 .4573 .4582 .4591 .4599 .4608 .4616 .4625 .4633
1.8 .4641 .4649 .4656 .4664 .4671 .4678 .4686 .4693 .4699 .4706
1.9 .4713 .4719 .4726 .4732 .4738 .4744 .4750 .4756 .4761 .4767
2.0 .4772 .4778 .4783 .4788 .4793 .4798 .4803 .4808 .4812 .4817
2.1 .4821 .4826 .4830 .4834 .4838 .4842 .4846 .4850 .4854 .4857
2.2 .4861 .4864 .4868 .4871 .4875 .4878 .4881 .4884 .4887 .4890
2.3 .4893 .4896 .4898 .4901 .4904 .4906 .4909 .4911 .4913 .4916
2.4 .4918 .4920 .4922 .4925 .4927 .4929 .4931 .4932 .4934 .4936
2.5 .4938 .4940 .4941 .4943 .4945 .4946 .4948 .4949 ..4951 .4952
2.6 .4953 .4955 .4956 .4957 .4959 .4960 .4961 .4962 .4963 .4964
2.7 .4965 .4966 .4967 .4968 .4969 .4970 .4971 .4972 .4973 .4974
2.8 .4974 .4975 .4976 .4977 .4977 .4973 .4979 .4979 .4980 .4981
2.9 .4981 .4982 .4982 .4983 .4984 .4984 .4985 .4985 .4986 .4986
3.0 .4987 .4987 .4987 .4988 .4988 .4989 .4989 .4989 .4990 .4990

534
CA FOUNDATION STATISTICS

3.1 .4990 .4991 .4991 .4991 .4992 .4992 .4992 .4992 .4993 .4993
3.2 .4993 .4993 .4994 .4994 .4994 .4994 .4994 .4995 .4995 .4995
3.3 .4995 .4995 .4995 .4996 .4996 .4996 .4996 .4996 .4996 .4997
3.4 .4997 .4997 .4997 .4997 .4997 .4997 .4997 .4997 .4997 .4998

535
CA FOUNDATION STATISTICS

Table II Values of e–m


m e–m m e–m m e–m
0.0 1.0000 1.5 0.2231 3.0 0.0498
0.1 0.9048 1.6 .2019 3.2 .0408
0.2 .8187 1.7 .1827 3.4 .0334
0.3 .7408 1.8 .1653 3.6 .0273
0.4 .6703 1.9 .4497 3.8 .0224
0.5 .6065 2.0 .1353 4.0 .0183
0.6 .5488 2.1 .1225 4.2 .0150
0.7 .4966 2.2 .1108 4.4 .0123
0.8 .4493 2.3 .1003 4.6 .0100
0.9 .4066 2.4 .0907 4.8 .00823
1.0 .3679 2.5 .0821 5.0 .00674
1.1 .3329 2.6 .0743 5.5 .00409
1.2 .3012 2.7 .0672 6.0 .00248
1.3 .2725 2.8 .0608 6.5 .00150
1.4 .2466 2.9 .0550 7.0 .00091

536
CA FOUNDATION STATISTICS

Table III - LOGARITHM


0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
10 0000 0043 0086 0128 0170 5 9 13 17 21 26 30 34 38
0212 0253 0294 0334 0374 4 8 12 16 20 24 32 36 36
11 0414 0453 0492 0531 0569 4 8 12 16 20 23 27 31 35
0607 0645 0682 0719 0755 4 7 11 15 18 22 26 29 33
12 0792 0828 0964 0899 0934 3 7 11 14 18 21 25 28 32
0969 1004 1038 1072 1106 3 7 10 14 17 20 24 27 31
13 1139 1173 1208 1239 1271 3 6 10 13 16 19 23 26 29
1303 1335 1367 1399 1430 3 7 10 13 16 19 22 25 29
14 1461 1492 1523 3 6 9 12 15 19 22 25 28
1553 1584 1614 1644 1673 1703 1732 3 6 9 12 14 17 20 23 26
15 1761 1790 1818 3 6 9 11 14 17 20 23 26
1847 1875 1903 1931 1959 1987 2014 3 6 8 11 14 17 19 22 25
16 2041 2068 2095 2122 2148 3 6 8 11 14 16 19 22 24
2175 2201 2227 2253 2279 3 5 8 10 13 16 18 21 23
17 2304 2330 2355 2380 2405 3 5 8 10 13 15 18 20 23
2430 2455 2480 2504 2529 3 5 8 10 12 15 17 20 22
18 2553 2577 2601 2625 2648 2 5 7 9 12 14 17 19 21
2672 2695 2718 2742 2765 2 4 7 9 11 14 16 19 21
19 2788 2810 2833 2856 2878 2 4 7 9 11 13 16 18 20
2900 2923 2945 2967 2989 2 4 6 8 11 13 15 17 19
20 3010 3023 3054 3075 3096 3116 3139 3160 3181 3201 2 4 6 8 11 13 15 17 19
21 3222 3243 3263 3284 3304 3324 3345 3365 3385 3404 2 4 6 8 10 12 14 16 18
22 3424 3444 3464 3483 3502 3522 3541 3560 3579 3598 2 4 6 8 10 12 14 15 17
23 3617 3636 3655 3674 3692 3909 3927 3747 3766 3784 2 4 6 7 9 11 13 15 17
24 3802 3820 3838 3856 3874 3892 3909 3927 3945 3962 2 4 5 7 9 11 12 14 16
25 3979 3997 4014 4031 4048 4065 4082 4099 4116 4133 2 3 5 7 9 10 11 13 15
26 4150 4166 4183 4200 4216 4232 4249 4265 4281 4298 2 3 5 7 8 10 11 13 15
27 4314 4330 4346 4362 4378 4393 4409 4425 4440 4456 2 3 5 6 8 9 11 12 14
28 4472 4487 4502 4518 4533 4548 4564 4579 4594 4609 2 3 5 6 8 9 10 12 14
29 4624 4639 4654 4669 4683 4698 4713 4728 4742 4757 1 3 4 6 7 9 10 11 13
30 4771 4786 4800 4814 4829 4843 4857 4871 4886 4900 1 3 4 6 7 9 10 11 13
31 4914 4928 4942 4955 4969 4983 4997 5011 5024 5038 1 3 4 6 7 8 10 11 12
32 5051 5065 5079 5092 5105 5119 5132 5145 5159 5172 1 3 4 5 7 8 9 11 12
33 5185 5198 5211 5224 5237 5250 5263 5276 5289 5302 1 3 4 5 6 8 9 10 12
34 5315 5328 5340 5353 5366 5378 5391 5403 5416 5428 1 3 4 5 6 8 9 10 11
35 5441 5453 5465 5478 5490 5502 5514 5527 5539 5551 1 2 4 5 6 7 9 10 11

537
CA FOUNDATION STATISTICS

36 5563 5575 5587 5599 5611 5623 5635 5647 5658 5670 1 2 4 5 6 7 8 10 11
37 5682 5694 5705 5717 5729 5740 5752 5763 5775 5786 1 2 3 5 6 7 8 9 10
38 5798 5809 5821 5832 5843 5855 5866 5877 5888 5899 1 2 3 5 6 7 8 9 10
39 5911 5922 5933 5944 5955 5966 5977 5988 5999 6010 1 2 3 4 5 7 8 9 10
40 6021 631 6042 6053 6064 6075 6085 6096 6107 6117 1 2 3 4 5 6 8 9 10
41 6128 6138 6149 6160 6170 6180 6191 6201 6212 6222 1 2 3 4 5 6 7 8 9
42 6232 6243 6253 6263 6274 6284 6294 6304 6314 6235 1 2 3 4 5 6 7 8 9
43 6335 6345 6355 6365 6575 6385 6395 6405 6415 6425 1 2 3 4 5 6 7 8 9
44 6435 6444 6454 6464 6474 6484 6493 6503 6513 6522 1 2 3 4 5 6 7 8 9
45 6532 6542 6551 6561 6571 6580 6590 6599 6609 6618 1 2 3 4 5 6 7 8 9
46 6628 6637 6646 6656 6665 6675 6684 6693 6702 6712 1 2 3 4 5 6 7 7 8
47 6721 6730 6739 6749 6758 6767 6776 6785 6794 6803 1 2 3 4 5 5 6 7 8
48 6812 6821 6830 6839 6848 6857 6866 6875 6884 6893 1 2 3 4 4 5 6 7 8
49 6902 6911 6920 6928 6037 6946 6955 6964 6972 6981 1 2 3 4 4 5 6 7 8

Example:
Log 2 = 0.3010: Log 20 = 1.3010: Log 200 = 2.3010: Log 2,000 = 3.3010 etc.
Log 2 = 0.3010 - 1 – (–) 0.699
Log 0.02 = 0.3010 - 2 – (–) 1.699

538
CA FOUNDATION STATISTICS

0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
50 6990 6998 7007 7016 7024 7033 7042 7050 7059 7067 1 2 3 3 4 5 6 7 8
51 7076 7084 7093 7101 7110 7118 7126 7135 7143 7152 1 2 3 3 4 5 6 7 8
52 7160 7166 7177 7185 7193 7202 7210 7218 7226 7235 1 2 2 3 4 5 6 7 7
53 7243 7251 7259 7267 7275 7284 7292 7300 7306 7314 1 2 2 3 4 5 6 6 7
54 7324 7332 7340 7348 7358 7364 7372 7380 7388 7396 1 2 2 3 4 5 6 6 7
55 7404 7412 7419 7427 7435 7443 7451 7459 7466 7474 1 2 2 3 4 5 5 6 7
56 7452 7490 7497 7505 7513 7520 7528 7536 7543 7551 1 2 2 3 4 5 5 6 7
57 7559 7566 7574 7582 7589 7597 7604 7612 7619 7627 1 2 2 3 4 5 5 6 7
58 7634 7642 7649 7657 7664 7672 7679 7686 7694 7701 1 1 2 3 4 4 5 6 7
59 7709 7716 7723 7731 7738 7745 7752 7760 7767 7774 1 1 2 3 4 4 5 6 7
60 7782 7789 7796 7803 7810 7818 7825 7832 7839 7848 1 1 2 3 4 4 5 6 6
61 7853 7860 7868 7875 7882 7889 7896 7903 7910 7917 1 1 2 3 4 4 5 6 6
62 7924 7931 7938 7945 7952 7958 7966 7973 7980 7987 1 1 2 3 3 4 5 6 6
63 7993 8000 8007 8014 8021 8028 8035 8041 8048 8055 1 1 2 3 3 4 5 5 6
64 8062 8069 8075 8082 8089 8096 8102 8109 8116 8122 1 1 2 3 3 4 5 5 6
65 8129 8136 8142 8149 8158 8162 8169 8176 8182 8189 1 1 2 3 3 4 5 5 6
66 8195 8202 8209 8215 8222 8228 8235 8241 8248 8254 1 1 2 3 3 4 5 5 6
67 8261 8267 8274 8280 8287 8293 8299 8306 8312 8319 1 1 2 3 3 4 5 5 6
68 8325 8331 8338 8344 8351 8357 8363 8370 8376 8382 1 1 2 3 3 4 4 5 6
69 8388 8395 8401 8407 8414 8420 8428 8432 8439 8445 1 1 2 2 3 4 4 5 6
70 8451 8457 8463 8470 8476 8482 8488 8494 8500 8506 1 1 2 2 3 4 4 5 6
71 8513 8519 8525 8531 8537 8543 8549 8555 8561 8567 1 1 2 2 3 4 4 5 5
72 8573 8579 8585 8591 8597 8603 8609 8615 8621 8627 1 1 2 2 3 4 4 5 5
73 8633 8639 8645 8651 8657 8663 8669 8673 8681 8686 1 1 2 2 3 4 4 5 5
74 8692 8698 8704 8710 8716 8722 8727 8733 8738 8745 1 1 2 2 3 4 4 5 5
75 8751 8756 8762 8768 8774 8779 8785 8791 8797 8802 1 1 2 2 3 3 4 5 5
76 8808 8814 8820 8825 8831 8837 8842 8848 8854 8859 1 1 2 2 3 3 4 5 5
77 8865 8871 8876 8882 8887 8893 8899 8904 8910 8915 1 1 2 2 3 3 4 4 5
78 8921 8927 8932 8938 8943 8949 8954 8960 8965 8971 1 1 2 2 3 3 4 4 5
79 8976 8982 8987 8993 8998 9004 9009 9015 9020 9025 1 1 2 2 3 3 4 4 5
80 9031 9036 9042 9047 9053 9058 9063 9069 9074 9079 1 1 2 2 2 3 4 4 5
81 9085 9090 9096 9101 9106 9112 9117 9122 9128 9133 1 1 2 2 2 3 4 4 5
82 9138 9143 9149 9154 9159 9165 9170 9175 9180 9186 1 1 2 2 2 3 4 4 5
83 9191 9196 9201 9206 9212 9217 9222 9227 9232 9238 1 1 2 2 2 3 4 4 5
84 9243 9248 9253 9258 9263 9269 9274 9279 9284 9289 1 1 2 2 2 3 4 4 5
85 9294 9299 9304 9309 9315 9320 9325 9330 9335 9340 1 1 2 2 3 3 4 4 5
86 9345 9350 9355 9360 9365 9370 9375 9380 9385 9390 1 1 2 2 3 3 4 4 5
87 9395 9400 9405 9410 9415 9420 9425 9430 9435 9440 0 1 1 2 2 3 3 4 4

539
CA FOUNDATION STATISTICS

88 9445 9450 9450 9455 9460 9469 9474 9479 9484 9489 0 1 1 2 2 3 3 4 4
89 9494 9499 9504 9509 9513 9518 9523 9528 9533 9538 0 1 1 2 2 3 3 4 4
90 9542 9547 9552 9557 9562 9566 9571 9576 9581 9586 0 1 1 2 2 3 3 4 4
91 9590 9595 9600 9605 9609 9614 9619 9624 9628 9633 0 1 1 2 2 3 3 4 4
92 9638 9643 9647 9652 9657 9661 9666 9671 9675 9680 0 1 1 2 2 3 3 4 4
93 9685 9689 9694 9699 9703 9708 9713 9717 9722 9727 0 1 1 2 2 3 3 4 4
94 9731 9736 9741 9745 9750 9754 9759 9763 9768 9773 0 1 1 2 2 3 3 4 4
95 9777 9782 9786 9791 9795 9800 9805 9809 9814 9818 0 1 1 2 2 3 3 4 4
96 9823 9827 9832 9836 9841 9845 9850 9854 9859 9863 0 1 1 2 2 3 3 4 4
97 9868 9872 9877 9881 9886 9890 9894 9899 9903 9908 0 1 1 2 2 3 3 4 4
98 9912 9917 9921 9926 9930 9934 9939 9943 9945 9952 0 1 1 2 2 3 3 4 4
99 9958 9961 9965 9969 9974 9978 9983 9987 9991 9996 0 1 1 2 2 3 3 3 4

540
CA FOUNDATION STATISTICS

Table IV - ANTILOGARITHM
0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
100 1000 1002 1005 1007 1009 1012 1014 1016 1018 1021 0 0 1 1 1 1 2 2 2
101 1023 1026 1028 1030 1033 1035 1038 1040 1042 1045 0 0 1 1 1 1 2 2 2
102 1047 1050 1052 1054 1057 1059 1062 1064 1067 1069 0 0 1 1 1 1 2 2 2
103 1072 1074 1076 1079 1081 1084 1086 1089 1091 1094 0 0 1 1 1 1 2 2 2
104 1096 1099 1102 1104 1107 1109 1112 1114 1117 1119 0 1 1 1 1 2 2 2 2
105 1122 1125 1127 1130 1132 1135 1138 1140 1143 1146 0 1 1 1 1 2 2 2 2
106 1148 1151 1153 1156 1159 1161 1164 1167 1169 1172 0 1 1 1 1 2 2 2 2
107 1175 1178 1180 1183 1186 1189 1191 1194 1197 1199 0 1 1 1 1 2 2 2 2
108 1202 1205 1208 1211 1213 1216 1219 1222 1225 1227 0 1 1 1 1 2 2 2 3
109 1230 1233 1236 1239 1242 1245 1247 1250 1253 1256 0 1 1 1 1 2 2 2 3
110 1259 1262 1265 1268 1271 1274 1276 1279 1282 1285 0 1 1 1 1 2 2 2 3
111 1288 1291 1294 1297 1300 1303 1306 1309 1312 1315 0 1 1 1 2 2 2 2 3
112 1381 1321 1324 1327 1330 1334 1337 1340 1342 1348 0 1 1 1 2 2 2 2 3
113 1349 1352 1355 1358 1361 1365 1368 1371 1374 1377 0 1 1 1 2 2 2 3 3
114 1380 1384 1387 1390 1393 1396 1400 1403 1406 1409 0 1 1 1 2 2 2 3 3
115 1413 1416 1419 1422 1426 1429 1432 1435 1439 1442 0 1 1 1 2 2 2 3 3
116 1445 1449 1452 1455 1459 1462 1466 1469 1472 1476 0 1 1 1 2 2 2 3 3
117 1479 1483 1486 1489 1493 1496 1500 1503 1507 1510 0 1 1 1 2 2 2 3 3
118 1514 1517 1521 1524 1528 1531 1535 1538 1542 1545 0 1 1 1 2 2 2 3 3
119 1549 1552 1556 1560 1563 1567 1570 1574 1578 1581 0 1 1 1 2 2 3 3 3
120 1585 1589 1592 1596 1600 1603 1607 1611 1614 1618 0 1 1 1 2 2 3 3 3
121 1622 1626 1629 1633 1637 1641 1644 1648 1652 1656 0 1 1 2 2 2 3 3 3
122 1660 1663 1667 1671 1675 1679 1683 1687 1690 1694 0 1 1 2 2 2 3 3 3
123 1698 1702 1706 1710 1714 1718 1722 1726 1730 1734 0 1 1 2 2 2 3 3 4
124 1738 1742 1746 1750 1754 1758 1762 1768 1770 1774 0 1 1 2 2 2 3 3 4
125 1778 1782 1786 1791 1795 1799 1803 1807 1811 1816 0 1 1 2 2 2 3 3 4
126 1820 1824 1828 1832 1837 1841 1845 1849 1897 1858 0 1 1 2 2 3 3 3 4
127 1862 1866 1871 1875 1879 1884 1888 1892 1941 1901 0 1 1 2 2 3 3 3 4
128 1905 1910 1914 1919 1923 1928 1932 1936 1941 1945 0 1 1 2 2 3 3 4 4
129 1950 1954 1959 1963 1968 1972 1977 1982 1986 1991 0 1 1 2 2 3 3 4 4
130 1995 2000 2004 2009 2014 2018 2023 2028 2032 2037 0 1 1 2 2 3 3 4 4
131 2042 2046 2051 2056 2061 2065 2070 2075 2080 2084 0 1 1 2 2 3 3 4 4
132 2089 2094 2099 2104 2109 2113 2118 2123 2128 2133 0 1 1 2 2 3 3 4 4
133 2138 2143 2148 2153 2158 2163 2168 2173 2178 2183 0 1 1 2 2 3 3 4 4
134 2188 2193 2198 2203 2206 2213 2218 2223 2228 2234 1 1 2 2 3 3 4 4 5
135 2239 2244 2249 2254 2259 2265 2270 2275 2280 2256 1 1 2 2 3 3 4 4 5

541
CA FOUNDATION STATISTICS

136 2291 2286 2301 2307 2312 2317 2323 2328 2333 2339 1 1 2 2 3 3 4 4 5
137 2344 2350 2355 2359 2366 2271 2377 2382 2388 2393 1 1 2 2 3 3 4 4 5
138 2399 2404 2410 2415 2421 2427 2432 2438 2443 2449 1 1 2 2 3 3 4 4 5
139 2455 2460 2466 2472 2477 2483 2489 2495 2500 2506 1 1 2 2 3 3 4 5 5
140 2512 2518 2523 2529 2535 2541 2547 2553 2559 2564 1 1 2 2 3 4 4 5 5
141 2570 2576 2582 2588 2594 2600 2606 2612 2618 2624 1 1 2 2 3 4 4 5 5
142 2630 2636 2642 2649 2655 2661 2667 2673 2679 2624 1 1 2 2 3 4 4 5 6
143 2692 2698 2704 2710 2716 2723 2729 2735 2742 2748 1 1 2 3 3 4 4 5 6
144 2754 2761 2767 2773 2780 2786 2793 2799 2805 2812 1 1 2 3 3 4 4 5 6
145 2818 2825 2831 2838 2844 2851 2858 2864 2871 2877 1 1 2 3 3 4 5 5 6
146 2884 2891 2897 2904 2911 2917 2924 2931 2938 2944 1 1 2 3 3 4 5 5 6
147 2951 2958 2965 2972 2979 2985 2992 2999 3006 3013 1 1 2 3 3 4 5 5 6
148 3020 3027 3034 3041 3048 3055 3062 3069 3076 3083 1 1 2 3 4 4 5 6 6
149 3090 3097 3105 3112 3118 3126 3133 3141 3148 3155 1 1 2 3 4 4 5 6 6

542
CA FOUNDATION STATISTICS

0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
150 3162 3170 3177 3184 3192 3199 3206 3214 3221 3228 1 1 2 3 4 4 5 6 7
151 3236 3243 3251 3258 3268 3273 3281 3289 3296 3304 1 2 2 3 4 5 5 6 7
152 3311 3319 3327 3334 3342 3350 3357 3365 3373 3381 1 2 2 3 4 5 5 6 7
153 3388 3396 3404 3412 3420 3428 3436 3442 3451 3459 1 2 2 3 4 5 6 6 7
154 3467 3475 3483 3491 3499 3508 3516 3524 3532 2540 1 2 2 3 4 5 6 6 7
155 3548 3556 3565 3573 3581 3589 3597 3606 3614 3622 1 2 2 3 4 5 6 6 7
156 3631 3639 3648 3656 3664 3673 3681 3690 3698 3707 1 2 3 3 4 5 6 7 8
157 3715 3724 3733 3741 3750 3758 3767 3776 3784 3793 1 2 3 3 4 5 6 7 8
158 3802 3811 3819 3828 3837 3846 3855 3864 3873 3882 1 2 3 4 4 5 6 7 8
159 3890 3899 3908 3917 3926 3936 3945 3954 3963 3972 1 2 3 4 4 5 6 7 8
160 3981 3990 3999 4009 4018 4027 4036 4046 4055 4065 1 2 3 4 5 6 6 7 8
161 4074 4083 4093 4102 4111 4121 4130 4140 4150 4159 1 2 3 4 5 6 7 8 9
162 4169 4178 4188 4198 4207 4217 4227 4236 4246 4256 1 2 3 4 5 6 7 8 9
163 4266 4276 4285 4295 4305 4315 4325 4335 4345 4355 1 2 3 4 5 6 7 8 9
164 4365 4375 4385 4395 4406 4416 4426 4436 4446 4457 1 2 3 4 5 6 7 8 9
165 4467 4477 4487 4498 4508 4519 4529 4539 4550 4560 1 2 3 4 5 6 7 8 9
166 4571 4581 4592 4603 4613 4624 4634 4645 4656 4667 1 2 3 4 5 6 7 9 10
167 4677 4688 4699 4710 4721 4732 4742 4753 4764 4775 1 2 3 4 5 7 8 9 10
168 4788 4797 4808 4819 4831 4842 4853 4864 4875 4887 1 2 3 4 6 7 8 9 10
169 4898 4909 4920 4932 4943 4955 4986 4977 4989 5000 1 2 3 5 6 7 8 9 10
170 5012 5023 5035 5047 5058 5070 5082 5093 5105 5117 1 2 4 5 6 7 8 9 11
171 5129 5140 5152 5164 5176 5188 5200 5212 5224 5236 1 2 4 5 6 7 8 10 11
172 5248 5260 5272 5284 5297 5309 5321 5333 5346 5358 1 2 4 5 6 7 9 10 11
173 5370 5383 5395 5408 5420 5433 5445 5458 5470 5483 1 3 4 5 6 8 9 10 11
174 5495 5508 5521 5534 5546 5559 5572 5585 5598 5610 1 3 4 5 6 8 9 10 12
175 5632 5636 5649 5662 5675 5689 5702 5715 5728 5741 1 3 4 5 7 8 9 10 12
176 5754 5768 5781 5794 5808 5821 5834 5848 5861 5875 1 3 4 5 7 8 9 11 12
177 5858 5902 5916 5929 5943 5957 5970 5984 5998 6012 1 3 4 5 7 8 10 11 12
178 6028 6039 6053 6067 6081 6095 6109 6124 6138 6152 1 3 4 6 7 8 10 11 13
179 6166 6180 6194 6209 6223 6237 6252 6266 6281 6295 1 3 4 6 7 9 10 11 13
180 6310 6324 6339 6353 6368 6383 6397 6412 6427 6442 1 3 4 6 7 9 10 12 13
181 6457 6471 6486 6501 6516 6531 6546 6561 6577 6592 2 3 5 6 8 9 11 12 14
182 6607 6622 6637 6653 6668 6683 6699 6714 6730 6745 2 3 5 6 8 9 11 12 14
183 6761 6776 6792 6808 6823 6839 6855 6871 6887 6902 2 3 5 6 8 9 11 13 14
184 6918 6934 6950 6965 6982 6598 7015 7031 7047 7063 2 3 5 6 8 10 11 13 15
185 7079 7096 7112 7129 7145 7161 7178 7194 7211 7228 2 3 5 7 8 10 12 13 15
186 7244 7261 7278 7295 7311 7328 7345 7362 7379 7396 2 3 5 7 8 10 12 13 15
187 7413 7430 7447 7464 7482 7499 7516 7534 7551 7568 2 3 5 7 9 10 12 14 16

543
CA FOUNDATION STATISTICS

188 7586 7603 7621 7638 7656 7674 7691 7709 7727 7745 2 4 5 7 9 11 12 14 16
189 7762 7780 7796 7816 7834 7852 7870 7889 7907 7925 2 4 5 7 9 11 13 14 16
190 7943 7962 7980 7998 8017 8035 8054 8072 8091 8110 2 4 6 7 9 11 13 15 17
191 8128 8147 8166 8185 8204 8222 8241 8260 8279 8299 2 4 6 8 9 11 13 15 17
192 8318 8337 8356 8375 8395 8414 8433 8453 8472 8492 2 4 6 8 10 12 14 15 17
193 8511 8531 8551 8570 8590 8610 8630 8650 8670 8690 2 4 6 8 10 12 14 16 18
194 8710 8730 8750 8770 8790 8810 8831 8851 8872 8892 2 4 6 8 10 12 14 16 18
195 8913 8933 8954 8974 8995 9016 9036 9057 9078 9099 2 4 6 8 10 12 15 17 19
196 9120 9141 9162 9183 9204 9226 9247 9268 9290 9311 2 4 6 8 11 13 15 17 19
197 9333 9354 9376 9397 9419 9441 9462 9484 9506 9528 2 4 7 9 11 13 15 17 20
198 9550 9572 9594 9616 9638 9661 9683 9705 9727 9750 2 4 7 9 11 13 16 18 20
199 9772 9795 9817 9840 9836 9886 9908 9931 9954 9977 2 5 7 9 11 14 16 18 20

Example:
If Log x = 0.301. then x = Antilog 0.301 = 2
If Log x = 1.301. then x = (Antilog 0.301) × 10 = 20
If Log x = 2.301. then x = (Antilog 0.301) × 100 = 200
If Log x = (–) 0.699, then we can write Log x = (– 1 + 0.301) : Thus x = Antilog (0.301) / 10 = 0.2
If Log x = (–) 1.699, then we can write Log x = (– 2 + 0.301) : Thus x = Antilog (0.301) / 100 = 0.02

544

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