Quantitative Methods for Economic Analysis 1 | Set 1
1. The following integers were obtained as the number of visits to a gift shop, per hour, over
several days. the mean of the above data, to 2 decimal places.
Correct : C. 2.81
2. You are conducting a survey of the people of India to find out how popular football is
among the Indians. You randomly choose people to call, and make 1,000 phone calls to people scattered across the country. In this study, what of the following statement is true
Correct : B. the people of india is called the population, and the people you called are the sample.
3. A _____ refers to the group in your study whereas a ______ refers to a distinct group of
people
Correct : B. sample; population
4. Under what circumstances should we be cautious about using the mean as a measure of
central tendency?
Correct : D. all of the above
5. If b = 0 the line of best fit will conventionally be drawn ______
Correct : A. as horizontal
6. Linear regression can achieve which of the following
Correct : A. allow us to predict someone’s statistical grade from their mathematical ability
7. Linear regression means that every time the value of x increases, y changes by a
______amount.
Correct : C. constant
8. In regression, the variable being predicted is called the
Correct : A. criterion or y variable
9. Which of the following is incorrect
Correct : D. in linear regression the line of best fit maximises the distance between the scores and the regression line.
10. A correlation coefficient of +0.40 could be considered
Correct : B. moderate
11. The _________coefficient (r) is a ratio between the covariance (variance shared by two
variables) and a measure of the separate variances.
Correct : C. correlation
12. In correlation, for a positive relationship ____ scores on one variable tend to be
associated with ____ scores on the other variable
Correct : C. high; high
13. To construct a ________we take each person’s score on x and y and plot where they
meet. Each data point represents two scores.
Correct : A. scatter diagram
14. When two variables are correlated we can say
Correct : B. that they share variance
15. Which of the following could be value of correlation coefficient
Correct : D. all of the above
16. In correlation, which of the following tells us that we have a perfect positive relationship
Correct : D. both a and b
17. You have a correlation coefficient of 0.45 between two variables. How much variance
would these two variables (to the nearest whole number) share, in percentage terms
Correct : D. 20%
18. A teacher surveys the students attending a seminar and finds that 20% are I BA students
and 45% are II BA students. This is an example of
Correct : A. descriptive statistics
19. Which of the following does not represent one method to obtain primary source data
Correct : C. looking in journals
20. The grades that a random sample of BA students received over the last five years in
Quantitative Techniques examinations represent what statistical concept
Correct : C. the grades are a sample
21. What method is used to sample a population so that it is representative of the population
Correct : A. samples are chosen at random from the population
22. An insurance agent earns a commission on each policy sold. This person made Rs.3,000
in commissions during one month and concludes that annual compensation will be Rs. 36,000. This is an example of:
Correct : B. inferential statistics
23. A student evaluation of teaching effectiveness for a particular course asks students to
respond to their level of agreement with several statements according to the scale 1 = Strongly Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, and 5 = Strongly Disagree. The responses indicate what level of measurement?
Correct : A. ordinal
24. A company publishes data on its quarterly earnings for its stockholders to evaluate.
Which of the following is true
Correct : C. the source is primary for the company and secondary for the stockholders
25. If you have a digital weighing machine in your college that only reads in integers, is your
weight a discrete variable
Correct : B. no, because weight is still a continuous variable regardless of the ability to measure it
26. Statistics is the study of _______ measures of the values associated with variables
Correct : D. numerical
27. ‘Primary source data is better than secondary source data’. This statement is
Correct : B. false
28. Celsius and Fahrenheit temperature scales are examples of interval levels of measurement
Correct : A. true
29. The number of students on a college campus is a continuous variable
Correct : B. false
30. ______refer to population characteristics while _____describe sample characteristics
Correct : B. parameter, statistic
31. Gender is categorized as____data
Correct : A. nominal
32. You are conducting a study to see whether a new experimental medication will cause bald
men to grow hair. You divide your patients into 2 groups. To one group you give the medication. To the other group, you give a placebo. In this study, the correct terms for the taking of the medication and the growth of hair are the following.
Correct : D. the medication is the independent variable, and the hair growth is the dependent variable
33. The concept of a variable implies that the values of every characteristic of an item are different
Correct : B. false
34. Which of the following definitions is the definition of the MEAN
Correct : D. the mean is the average calculated by adding up all the values and dividing by the number
35. Which of the following definitions is the definition of the MEDIAN?
Correct : A. the median is the value that half of the entries are below and half of the entries are above
36. What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15}
Correct : C. 7
37. A teacher had 5 students who took a test. Their test scores are as follows: 62, 86, 72, 66,
72. What is the mode of the test
Correct : A. 72
38. Students A,B and C took part in a recent quiz. Student A scored 50 points, Student B
scored 60 points and Student C scored 70 points. What is the mean of this quiz
Correct : A. 60
39. Contestants of a competition have reached the semi-finals. After the semi-finals, their
score are of below. Those whose score is lower than the median will not be able to enter the finals, so who managed to enter the finals. Here is the list of contestants: Anoop - 70 Points, Babu - 50 Points, Cindu - 65 Points, Das - 90 Points, Emy - 55 Points, Fasna - 85 Points, Gopi - 100 Points
Correct : B. anoop, das, fasnn and gopi
40. What is the median in the following numbers: 19, 21, 18, 17, 18, 22, 46
Correct : A. 19
41. A teacher had 5 students who took a test. Their test scores are as follows: 62, 86, 72, 66,
72. What is the mode of the test
Correct : A. 72
42. Which of the curves is more peaked than the normal curve?
Correct : C. lapokurtic
43. What will be the range of "r" when we find that the dependent variable increases as the
independent variable increases
Correct : C. 0.1 to 1
44. Which of the following correlation coefficients shows the highest degree of association
Correct : D. both a & b
45. The sum of deviations taken from arithmetic mean is
Correct : B. zero
46. Which of the following statements is not correct
Correct : C. some data sets do not have mean
47. Which of the following is not true in respect of mean deviation
Correct : C. it is capable of further algebraic treatment
48. What is the purpose of a summary table?
Correct : A. to see differences between or among categories
49. A graphical representation of a frequency distribution is called a__________________
Correct : B. histogram
50. The width of a class interval in a frequency distribution (or bar chart) will be
approximately equal to the range of the data divided by the ______________ .
Correct : D. number of class intervals
51. When constructing a frequency distribution, which of the following rules must be
followed?
Correct : D. adjacent classes cannot overlap
52. The rule of thumb for creating a frequency distribution is to divide the data into 5-15 classes. While larger numbers of classes allow for larger data sets, how do you know exactly
how many classes to use
Correct : B. select the number of classes that provides definition to the shape of the data
53. Considering the various types of tables and charts you have studied, which table, chart,
diagram or plot would you use to depict categorical data for two variables in a visual format
Correct : A. bar chart
54. For the list of values, 13, 18, 13, 14, 13, 16, 14, 21, 13, the mean, median, mode, and
range are in the order
Correct : B. 15, 14, 13, 8
55. Arrange the numbers in numerical order and see which is repeated most often. This describes which measure of central tendency
Correct : D. mode
56. The cumulative frequency for a particular class is equal to 35. The cumulative frequency for the next class will be _________________
Correct : D. 35 plus the next class frequency
57. Which of the following would be most helpful in the construction of a pie chart
Correct : B. ogive
58. The highest bar in a histogram represents
Correct : C. the class with the highest frequency
59. The movie theater industry tracks ticket sales by age groups. A _______would provide an
appropriate representation for the proportion of ticket sales attributed to each age group.
Correct : D. pie chart
60. You are constructing a histogram that is required to use 6 classes for a data set that ranges
from 15 to 70. A class width of ____ units would be an appropriate choice
Correct : B. 10
61. A _______ would be an effective tool to assess the relationship between the grade earned
in a class and the number of hours spent studying
Correct : A. scatter diagram
62. How might an extreme value in the sample data set affect the value of the mean
Correct : C. since all values are summed, any extreme value can influence the mean to a large extent
63. Which of the following is not a measure of central tendency
Correct : A. interquartile range
64. Which of the following is the most appropriate measure of central tendency for ordinal
data
Correct : C. median
65. Which of the following measures of central tendency is not affected by extreme values in
the sample data set
Correct : A. mode
66. How many elements of a data set are between the first and third quartiles
Correct : A. one half
67. Which of the following measures become larger as the data is more dispersed
Correct : D. range, variance, and standard deviation
68. The sum of deviations about the arithmetic mean is always equal to _______
Correct : B. 0
69. How is the arithmetic mean related to the variance
Correct : C. variance measures the variability of values about the mean
70. Which of the following sampling techniques will not result in a probability sample?
Correct : B. quota
71. The standard deviation of a sampling distribution is commonly called which of the
following
Correct : C. standard error
72. Which of the following techniques yields a simple random sample
Correct : C. numbering all the elements of a sampling frame and then using a random number table to pick cases from the table
73. People who are available, volunteer, or can be easily recruited are used in the sampling
method called ______
Correct : D. convenience sampling
74. Which of the following types of sampling involves the researcher determining the appropriate sample sizes for the groups identified as important, and then taking convenience
samples from those groups
Correct : B. quota sampling
75. In which of the following nonrandom sampling techniques does the researcher ask the
research participants to identify other potential research participants
Correct : A. snowball
76. The type of sampling in which each member of the population selected for the sample is
returned to the population before the next member is selected is called _________
Correct : B. sampling with replacement
77. Which of the following is not a type of nonrandom sampling
Correct : A. cluster sampling
78. ___________ is a set of elements taken from a larger population according to certain
rules
Correct : A. sample
79. Questionnaires can address events and characteristics taking place ______
Correct : D. all of the above
80. Which of the following terms best describes data that were originally collected at an
earlier time by a different person for a different purpose
Correct : B. secondary data
81. Which of the following is true concerning observation method of data collection
Correct : C. it is often not possible to determine exactly why the people behave as they do
82. Correlation refers to
Correct : B. the association between two variables
83. If two variables are highly correlated, what do you know
Correct : D. that changes in one variable are accompanied by predictable changes in the other
84. A researcher finds a correlation of 0.40 between personal income and the number of
years of college completed. Based upon this finding he can conclude that
Correct : D. more years of education are associated with higher income
85. Which of the following would not allow you to calculate a correlation?
Correct : C. a curvilinear relationship between x and y
86. Correlation relates the relative position of a score in one distribution to
Correct : A. the relative position of a score in another distribution
87. If a positive correlation exists between height and weight, a person with above average
height is expected to have above average weight
Correct : A. true
88. Regression analysis:
Correct : D. establishes a relationship between two variables
89. In the equation of a straight line, Y = mX + c the term, m is the:
Correct : D. slope
90. In the equation of a straight line, Y = mX + c , if c is equal to zero then:
Correct : A. the line of best fit passes through the origin
91. In the equation of a straight line, Y = mX + c , if m is equal to −2 then:
Correct : C. there is a negative relationship between the two variables
92. In the equation of a straight line, Y = mX + c , if m is equal to zero then when:
Correct : D. x increases y remains constant
93. If the Pearson correlation co-efficient R is equal to 1 then:
Correct : A. there is a perfect positive relationship between the two variables
94. The mathematical notation R2
is for:
Correct : A. the co-efficient of determination
95. If the slope of the regression line is calculated to be 2.5 and the intercept 16 then the
value of Y when X is 4 is:
Correct : D. 26
96. If Spearman’s co-efficient of rank correlation is equal to one, then:
Correct : D. the rankings of the two variables totally agree
97. The correlation coefficient is used to determine:
Correct : C. the strength of the relationship between the x and y variables
98. If there is a very strong correlation between two variables then the correlation
coefficient must be
Correct : B. much smaller than 0, if the correlation is negative
99. In regression, the equation that describes how the response variable (y) is related to the
explanatory variable (x) is:
Correct : B. the regression model
100. Regression modelling is a statistical framework for developing a mathematical equation
that describes how
Correct : C. one response and one or more explanatory variables are related