.1.statistics MCQS

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Multiple Choice Questions Probability and

Statistics
1) The seasonal variation in the time series is computed by

a) Ratio to moving average method


b) Ratio to trend method
c) Link relative method
d) All the above

Seasonal variation can be computed by any of the methods.

2) After detrending the data, the time series (Multiplicative model) consist of

a) Y=TSCI
b) Y=TSI
c) Y=CSI
d) None of the above

After detrending the data, the time series will consist of Characteristic Stability
Index, that helps to determine which changing variable is responsible majorly for
causing the model score shift.

3) Exponential smoothing is a forecasting method which

a) Uses the actual data, not forecast data


b) Requires fitting a mathematical model to the data
c) Gives equal weights to all the periods
d) All the above
Exponential smoothing utilizes the actual data, requires a mathematical model,
and all the periods have equal weights.
4) Dividing the time series by moving average, the time series (Multiplicative model
consists of
a) Y=SI
b) Y=CS
c) Y=TS
d) Y=TC

If we divide the time series by moving average, the Multiplicative model will
consist of Seasonal variations(s) into irregular variations(i)
Multiple Choice Questions Probability and
Statistics

5) The dependent variable is also known as

a) Explained variable
b) Response variable
c) Predicted variable
d) All the above
Explained variable, Response variable and predicted variable all are the names of
dependent variable.

6) When the slope of regression line is negative, the following statistics is also negative
a) r
b) r2
c) Standard error of estimate
d) Standard error of slope co-efficient

When we have the slope of regression line negative, correlation coefficient r will
also be negative.

7) If both the dependent and independent variable increase simultaneously, the correlation
co-efficient will be in the range of

a) 0 to +1
b) 0 to -1
c) 1 to 2
d) -1 to +1

Correlation co-efficient is used to measure the linear relationship between two


variables, and in case of simultaneous increase of the dependent and
independent variable it is measured to be in range of 0 to +1.

8) If the unexplained variation between variable X and Y is 0.40 then r2 is

a) 0.75
b) 0.60
c) 0.40
d) None of the above

Computed by the formula r2 = Explained Variation / Total Variation


Multiple Choice Questions Probability and
Statistics
9) The strength of a linear relationship between two variables Y and X is measured by

a) r2
b) byx
c) r
d) None of the above

The sample correlation coefficient r is used to measure the strength between


variable Y and X.

10) The area under the standard normal curve between -3.0 and -2.0 is

a) 0.0228
b) 0.4472
c) .02165
d) 0.3413

The solution is calculated using the the z-score of the data value and after that a
Z-Score Table

11) All normal distribution is


a) Symmetrical
b) Having two parameters
c) Bell shaped
d) All the above

Normal distribution can be Bell shaped, With two parameters or symmetrical.

12) The normal distribution will be less spread out when

a) The mean is small


b) The median is small
c) The mode is small
d) The standard deviation is small

The spreading of normal distribution is directly related to the standard


deviation, if the standard deviation is small, it will be less spread.

13) Which of the following is not a property of a binomial experiment?

a) The successive trials are all independent


b) The experiment is repeated a fixed number of times say n
Multiple Choice Questions Probability and
Statistics
c) The probability of success denoted by p remains constant for all trials
d) There are three or more possible outcomes for each trial

You can only have two possible outcomes for each trial in binomial experiment.

14) The standard deviation of the binomial distribution is

a) √ np
b) √ npq
c) npq
d) pq

The standard deviation in binomial distribution means the degree in which the
variables are different from the mean, that is √ npq in this case.

15) A binomial distribution maybe approximated by a poisson distribution when

a) n is large and p is small


b) n is small and p is large
c) n is small and p is small
d) n is large and p is large

Poisson distribution can only be applied when n is large, and p is small in


binomial distribution.

16) A random variable is also known as

a) Chance variable
b) Stochastic variable
c) Variate
d) All the above

Variate, Chance, Stochastic variable are the names of a random variable.

17) The distribution function of a random variable X denoted by F(x) is defined as

a) F(x)= P(X ≤ x)
b) F(x)= P(X ≥x)
c) F(x)= P(X =x)
d) None of the above
Multiple Choice Questions Probability and
Statistics
The function F(x) gives the probability of the event that X takes a value less than
or equal to a specified value of x.

18) Discrete probability distribution maybe represented by

a) A Table
b) A mathematical function
c) A Histogram
d) All the above

Histogram, Mathematical function or Table all can be applied while


representing the discrete Probability.

19) A continuous probability distribution is not represented by

a) A table
b) A mathematical function
c) A graph
d) A density functions.

Tables are used to represent Discrete probability and not the continuous
probability distribution.

20) If X and Y are two random variables, then E (X + Y) is equal to

a) E(X) + E(Y)
b) E(X) + Y
c) E(X) – E(Y)
d) None of above

E (X + Y) can also be equal to the sum of mathematical functions of both the


random variables.

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