ZENITH TUTORS MOCK TEST

SSC 202: - STATISTICAL METHOD AND SOURCES II

TIME: 2HRS

Name: ____________________________________________________ Phone Number: ________________________________

1. Statistical Method and Sources 1 & 2 are both cheap courses. (a) Not sure (b) False (c) True (d) None of these
2. The repetitive movement around a trend line in a 2-year period is best described as seasonal. (a) Not sure (b) False (c) True (d)
None of these
3. Once seasonal indices are computed for a time series can be deseasonalised so that only trend component remains. (a) True (b)
False (c) Not sure (d) None of these
4. The percent of trend should not be used for predicting future cyclical variations. (a) True (b) False (c) Not sure (d) None of these
5. Over time, random movements tend to counteract one another in irregular variation in a time series. (a) Not sure (b) False (c)
True (d) None of these
6. Before percent of trend can be calculated, a trend line (graph of Y) must first be calculated. (a) True (b) False (c) Not sure (d)
None of these
7. If a time series contains an odd number of elements, then the coding for some of the entries will be in half-units. (a) True (b)
False (c) Not sure (d) None of these
8. To be considered a time series, a group of statistical information must have been accumulated at regular intervals. (a) Not sure
(b) False (c) True (d) None of these
9. Time series analysis is only applicable to data that is collected at regular intervals. (a) True (b) False (c) Not sure (d) None of
these
10. In time series analysis, autocorrelation refers to the correlation between two different time series. (a) True (b) False (c) Not sure
(d) None of these
11. Moving averages are commonly used to smooth out irregularities and identify trends in time series data. (a) True (b) False (c)
Not sure (d) None of these
12. Stationarity is a requirement in time series analysis, where the mean, variance, and autocorrelation structure remain constant over
time. (a) True (b) False (c) Not sure (d) None of these
13. Time series forecasting is primarily concerned with predicting historical data points accurately. (a) True (b) False (c) Not sure (d)
None of these
14. Seasonal differencing involves differencing the time series data with a fixed time lag of one period. (a) True (b) False (c) Not
sure (d) None of these
15. Trend-cycle decomposition aims to separate the long-term trend component from the seasonal component in a time series. (a)
True (b) False (c) Not sure (d) None of these
16. The coefficient of determination (R-squared) represents the strength of the relationship between the dependent and independent
variables in regression analysis. (a) True (b) False (c) Not sure (d) None of these
17. Multicollinearity occurs when the independent variables in a regression model are perfectly correlated with each other. (a) True
(b) False (c) Not sure (d) None of these
18. Heteroscedasticity refers to the violation of the assumption of constant variance of residuals in regression analysis. (a) True (b)
False (c) Not sure (d) None of these
19. Outliers have no impact on the regression coefficients and overall model fit. (a) True (b) False (c) Not sure (d) None of these
20. The Ordinary Least Squares (OLS) method minimizes the sum of the squared residuals to obtain the best-fit line in simple linear
regression. (a) True (b) False (c) Not sure (d) None of these
21. Regression analysis can only establish a causal relationship between the independent and dependent variables. (a) True (b) False
(c) Not sure (d) None of these
22. The F-test in regression analysis is used to test the overall significance of the regression model. (a) True (b) False (c) Not sure (d)
None of these
23. Correlation implies causation, meaning that a strong correlation between two variables indicates a cause-and-effect relationship.
(a) True (b) False (c) Not sure (d) None of these
24. The correlation coefficient is a value between -1 and 1 that represents the strength and direction of the linear relationship between
two variables. (a) True (b) False (c) Not sure (d) None of these
25. Correlation analysis can only be applied to numerical data; it cannot be used for categorical variables. (a) True (b) False (c) Not
sure (d) None of these
26. Spearman's rank correlation coefficient is used to measure the strength and direction of the linear relationship between two
variables. (a) True (b) False (c) Not sure (d) None of these
27. Correlation analysis can determine if a relationship between variables is statistically significant. (a) True (b) False (c) Not sure
(d) None of these
28. A positive correlation indicates that as one variable increases, the other variable decreases. (a) True (b) False (c) Not sure (d)
None of these
29. Correlation analysis can detect non-linear relationships between variables. (a) True (b) False (c) Not sure (d) None of these
30. Correlation analysis can be used to determine the cause-and-effect relationship between two variables. (a) True (b) False (c) Not
sure (d) None of these
31. The correlation coefficient can be interpreted as the proportion of the variation in one variable explained by the other variable.
(a) True (b) False (c) Not sure (d) None of these
32. Correlation analysis can be applied to both cross-sectional and time series data. (a) True (b) False (c) Not sure (d) None of these
33. The Laspeyres index is a type of index number that uses fixed weights based on the base period quantities. (a) True (b) False (c)
Not sure (d) None of these
34. The Paasche index is a type of index number that uses fixed weights based on the current period quantities. (a) True (b) False (c)
Not sure (d) None of these
35. The index number is a measure of relative change and does not provide absolute values. (a) True (b) False (c) Not sure (d) None
of these
36. The index number is a useful tool for comparing aggregate economic indicators across different time periods. (a) True (b) False
(c) Not sure (d) None of these
37. The index number is only applicable to price-related data and cannot be used for other types of measurements. (a) True (b) False
(c) Not sure (d) None of these
38. Time series analysis is used to detect patterns of change in statistical information over regular intervals of time (a) True (b) False
(c) Unsure
39. Secular trends represent the long-term direction of a time series (a) True (b) False (c) Unsure
40. When coding time values, we subtract from each value the smallest time value in the series; hence, the code of the smallest value
is zero (a) True (b) False (c) Unsure
41. When using the least square method to determine a second-degree equation of best fit, the values of four numerical constants
must be determined. (a) True (b) False (c) Unsure
42. Time series analysis helps us to analyze past trends, but it cannot aid us in future uncertainties (a) True (b) False (c) Unsure
43. A time series of annual data can contain which of the following components? (a) Secular trends (b) Cyclical fluctuation (c)
Seasonal variation (d) All of the above (e) A and B, but not C
44. Suppose that a particular time series should be fitted with a parabolic curve. The general equation for this second-degree equation
is Y = a + bx + cx2. What do the x’s represent in this formular? (a) Coded values of the time variables (b) A numerical constant
that is determined by a formula (c) Estimates of the dependent variable (d) None of these
45. Seasonal Variation repeat during a period of [a] none of these [b] one year [c] four years [d] all of the above
46. The most important factor causing seasonal variations is [a] depression in business [b] growth in population [c] weather and social
customs [d] all of the above
47. The trend can be found by the method of least squares if the [a] trend is not clear [b] the trend is clear [c] none of these [d] trend
is linear.
48. The trend is linear if [a] rate of growth is positive [b] growth is not constant [c] growth rate is constant [d] all of the above
49. The magnitude and extent of relationship between two variables can be solved by all of these EXCEPT [a] scattered diagram [b]
Laspeyre’s Price index [c] Spearman’s Rank Correlation Coefficient [d] Product Moment Correlation Coefficient
50. Rejecting the null hypothesis means [a] accepting defeat [b] finding insignificance [c] we haven’t done the test properly [d]
accepting the alternative hypothesis.

Use this table to answer question 51 and 52.

Quarterly Sales
Year I II III IV
1992 17 22 10 19
1993 16 21 11 19
1994 18 25 14 23
1995 18 26 12 22
1996 19 27 15 26
51. The 4QCMA for year 1994 quarter IV is [a] 20.1 [b] 20.13 [c] 20.125 [d] 20.
52. The 4QCMA for year 1992 quarter IV is [a] 16.625 [b] 20.125 [c] 16 [d] 17.73.
53. The following are components associated with set of observation obtained sequentially in time EXCEPT [a] trend [b] Cyclical
variation [c] Irregular variation [d] fluctuation
54. Given that 3y – 2x – 4 = 0 is a least squares equation, find its slope and the intercept. [a] 2 and 3 [b] 2/3 and ¾ [c] 2/3 and 4/3
[d] none of the above
55. In testing the linear relationship between 3 variables Y, X 1, X2, with N = 30. What is the degree of freedom due to residual? [a]
3 [b] 30 [c] 2 [d] 27
56. Suppose that the linear equation y = 10 + 3x describes well an annual time series for 1988 – 1994. If the actual value of Y for
1991 is 8, what is the percent of trend for 1991? [a] 125% [b] 112.5% [c] 80% [d] 95%
57. A method used to deal with cyclical variation when cyclical components does not explain most of the variation left unexplained
by trend components is [a] spearman analysis [b] specific analysis [c] second degree analysis [d] Relative Cyclical Residual
58. If a variable X in a relationship decreases as variable Y increases, the relationship can be described as [a] a scattered relationship
[b] positively correlated [c] negatively correlated [d] having no correlation
59. One of the assumptions of regression analysis is [a] dependent variable is not correlated with the error term [b] no irrelevant
variable is excluded [c] sum of error term is equal to unity [d] independent variable is not correlated with the error term
60. One of the following is the tool used to establish the significance of linear relationship between variables [a] regression analysis
[b] analysis of variance [c] correlation analysis [d] critical region
61. Which of the following is NOT a problem in the construction of an index number? [a] selection of price quotation [b] choice of
average [c] choice of weights [d] none of the above

Use the data in the table to answer question 62 – 66 (Note regress Y on X)

X Y
1.5 4.8
1.8 5.7
2.4 7.0
3.0 8.3
3.5 10.9
3.9 12.4
4.4 13.1
4.8 13.6
5.0 15.3

62. Find ∑ 𝑋𝑌 [a] 241.11 [b] 354.90 [c] 345.09 [d] 159.21.
63. What is ∑ 𝑋 2 ? [a] 101.51 [b] 115.11 [c] 105.12 [d] 113.22
64. Obtain the slope [a] 3.2123 [b] 2.3903 [c] 2.9330 [d] 2.9303.
65. Estimate Y when X = 3.8 [a] 11.4132 [b] 11.3211 [c] 11.3919 [d] 12.6213
66. What is the intercept? [a] 0.2568 [b] 0.2415 [c] 0.2615 [d] 0.2581

Use this table to answer question 67 – 69.

2005 2006 2007
Commodities
Price QTY Price QTY Price QTY
A 38 48 32 66 40 58
B 56 36 60 43 68 36
C 34 60 38 54 46 52
D 27 45 33 46 29 42

67. Using 2005 as the base year, what is the Laspeyre’s Price index for 2006? [a] 120.16% [b] 103.35% [c] 104.25% [d] 105.16%
68. Using 2005 as the base year, what is the Paasche’s Price Index for 2007? [a] 118.26% [b] 104.25% [c] 116.18% [d] 117.64%
69. The simple aggregate quantity index using 2005 as base year is [a] 95.09% [b] 90.43% [c] 105.13% [d] 110.58%
70. Index numbers are used for the following EXCEPT [a] measure of cost of living [b] measure inflationary and deflationary
tendencies in an economy [c] compare academic standards between two countries [d] to forecast future trends in production.