Questions Bank

Class: F.Y.B.Com.
Academic Year: 2020-2021
Semester: I
Subject: Mathematical and Statistical Techniques-I
Subject Code: UBCOMFSI.6

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Syllabus of Mathematical and Statistical Techniques-I

[A] MATHEMATICS:
Unit I: Shares and Mutual Funds
a. Shares: Concept of share, face value, market value, dividend, equity shares, preferential
shares, bonus shares. Simple examples.
b. Mutual Funds: Simple problems on calculation of Net income after considering entry
load, dividend, change in Net Asset Value (N.A.V.) and exit load. Averaging of price
under the Systematic Investment Plan (S.I.P.)

Unit II: Permutation, Combination and Linear Programming Problems:

a. Permutation and Combination: Factorial Notation, Fundamental principle of counting,
Permutation as arrangement, Simple examples, combination as selection, Simple
examples, Relation between n Cr and n Pr Examples on commercial application of
permutation and combination.
b. Linear Programming Problem: Sketching of graphs of (i) linear equation Ax + By + C=
0 (ii) linear inequalities. Mathematical Formulation of Linear Programming Problems upto
3 variables. Solution of Linear Programming Problems using graphical method up to two
variables.

[B] STATISTICS:
Unit III: Summarization Measures:
a. Measures of Central Tendencies: Definition of Average, Types of Averages: Arithmetic
Mean, Median, and Mode for grouped as well as ungrouped data. Quartiles, Deciles and
Percentiles. Using Ogive locate median and Quartiles. Using Histogram locate mode.
Combined and Weighted mean.
b. Measures of Dispersions: Concept and idea of dispersion. Various measures Range,
Quartile Deviation, Mean Deviation, Standard Deviation, Variance, Combined Variance.
Unit IV: Elementary Probability Theory:
a. Probability Theory: Concept of random experiment/trial and possible outcomes; Sample
Space and Discrete Sample Space; Events their types, Algebra of Events, Mutually
Exclusive and Exhaustive Events, Complimentary events.
Classical definition of Probability, Addition theorem (without proof), conditional
probability. Independence of Events: P( A ∩ B ) = P(A) P(B). Simple examples.
b. Random Variable: Probability distribution of a discrete random variable; Expectation
and Variance of random variable, simple examples on probability distributions.

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Unit V: Decision Theory:
Decision making situation, Decision maker, Courses of Action, States of Nature, Pay-off and
Pay-off matrix; Decision making under uncertainty, Maximin, Maximax, Minimax regret and
Laplace criteria; simple examples to find optimum decision. Formulation of Payoff Matrix.
Decision making under Risk, Expected Monetary Value (EMV); Decision Tree; Simple
Examples based on EMV. Expected Opportunity Loss (EOL), simple examples based on
EOL.

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Choose CORRECT ALTERNATIVE in each of the following
Unit I: Shares and Mutual Funds
1) If a company collapses under huge debts; what action will be taken against individual
shareholders?
(a) Their assets will be attached to pay the debts
(b) Two years rigorous imprisonment for each of them
(c) They will be banned from trading in the market for five years
(d) No legal action is taken against them because of limited liability

2) If the market value of share is greater than its face value, then the share is said to be
(a) At a premium
(b) At par
(c) Below par
(d) None of these

3) Dividend paid for a share by the company is based on its

(a) Face value
(b) Market value
(c) Average of face value and market value
(d) Shareholders discretion

4) A man invests ₹10,400 in buying a share of face value ₹100 at ₹80 per share. Then, the
number of shares he has is
(a) 104
(b) 116
(c) 130
(d) None of these

5) A man invests ₹10,400 in buying a share of face value ₹100 at the price of ₹80. If hesells
off these shares at ₹90 each, then his income is
(a) ₹2,350
(b) ₹1,040
(c) ₹1,300
(d) None of these

6) A man spent ₹14,700 to buy shares at market price of ₹98. He then sold these shares at
₹85. He therefore incurred a loss of ₹_ __
(a) 1130.8
(b) 1,950
(c) 2,154
(d) 2000

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7) Pavan invested ₹18,00 in buying shares of face value ₹10. If the total face value of his
share is ₹7,500, then the market price of each of his share is ₹_____
(a) 750
(b) 24
(c) 1800
(d) 2000

8) Ramya bought 10 shares at market value of ₹100 each with brokerage at 0.25%. Then
the amount he got from this deal is ₹_____
(a) 1,025
(b) 975
(c) 992.5
(d) 1002.5

9) Nitin sold 200 shares at market value of ₹250 each with brokerage at 0.3%. Then the
amount he got from this deal is ₹_____
(a) 50,150
(b) 48,500
(c) 49,850
(d) 50,000

10) Sagar bought 500 shares at ₹100 each and sold them at ₹105 on the same day. If the
brokerage for intraday is 0.4% on the sale price only, then his net income from this
transaction is ₹____
(a) 2,290
(b) 2,400
(c) 2,500
(d) 52,290

11) Rachana has 100 shares of face value ₹2 and market value as ₹260. If the company
declared a dividend of 50% on the shares, then her total dividend earned from the shares
is ₹____
(a) 100 (b)
13,000 (c)
1,000 (d)
2,600

12) Neeta had 50 shares of a company, which declared a dividend of 40% on its shares. If
Neeta earned a dividend of ₹2,000 on her shares, then the face value of each of her
share is ₹_____
(a) 10
(b) 100
(c) 400
(d) 2

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13) Among the following ______ term is not related to Mutual Funds.
(a) NAV
(b) Dividend
(c) Right issue
(d) NFO

14) Sonali invested ₹40,000 in a Mutual Fund with NAV= ₹23,72. Then the number of units
acquired by her is
(a) 1586
(b) 1587
(c) 1686.34
(d) 1588

15) An investor sold his 121.5 units of a certain Mutual Fund when its NAV was ₹31.3.
Then the amount received by him is ₹
(a) 3751
(b) 3802.95
(c) 3782
(d) 3780

16) Sudhir sold his 125.6 units of Mutual Fund when its NAV was ₹15.35. If the exit load is
0.6%, then in this deal, he received ₹
(a) 1916.39
(b) 1930
(c) 1927.96
(d) 1933

17) Tina invested ₹6460 in a Mutual Fund and received 516.8 units. Then the NVA of the
Mutual Fund was ₹
(a) 108
(b) 3338528
(c) 12.5
(d) 10

18) Josephine invested ₹9,000 in Birla Sun life Mutual Fund when NAv was ₹150. She sold
all her units when NAV touched ₹165, then her gained in the transaction is
(a) 1,000
(b) 900
(c) 750
(d) 15

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19) An investor has 510.28 units of a certain Mutual Fund, Purchased at NAV of ₹16.25. If
the company declares a dividend of 25% on the Mutual Fund ,then total the total
dividend of the investor for this Mutual Fund is ₹
(a) 2073.01
(b) 2011.5
(c) 1500
(d) 1275.7

20) Radhika invested ₹8,000 in a Mutual Fund when its NAV was ₹11.33. If 20% dividend is
declared by the Mutual Fund, then she gets ₹
(a) 1600
(b) 1599.8
(c) 1412.18
(d) 1250

21) An investor invested a fixed amount of ₹1000 per month for 5 months under an S.I.P.
scheme. If the NAVs for these months were ₹50, 40, 80, 25 and 20 respectively, then the
average unit cost occurred to the investor using the Rupee cost average method is ₹ (a)
33.898
(b) 43
(c) 38
(d) 40

22) Shikha invested ₹3,000 per month for 4 months under an S.I.P. scheme. If the NAVs for
this period were ₹20, 15, 25, 40 respectively, then the average unit cost occurred to
Shikha using the Rupee cost average method is ₹
(a) 25
(b) 22.02
(c) 15
(d) 40

23) The value printed on the share certificate or stated in its I.P.O. subscription form is
known as
(a) Market value
(b) Dividend
(c) Face value
(d) Rate of return

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24) Share which are paid a dividend at a fixed rate on a priority basis are called
(a) Equity shares
(b) Preference shares
(c) Equity shares or Preference shares
(d) None of these

25) The shares which are paid a dividend at a rate which is decided by the board of directors
of company are known as
(a) Equity shares
(b) Preference shares
(c) Equity shares or Preference shares
(d) None of these

26) The price at which a share is traded in the stock exchange is called
(a) Market value
(b) Face value
(c) Discounted price
(d) (a) or (b)

27) A share of ₹100 has a market price of has a market price of ₹10 above par means its
market price is
(a) ₹11
(b) ₹110
(c) ₹90
(d) ₹120

28) A share of ₹100 has a market price of has a market price of ₹10 below par means its
market price is
(a) ₹90
(b) ₹110
(c) ₹95
(d) ₹130

29) If share is sold at par of its face value, then its market price is ______ its face value.
(a) Same as
(b) Greater than
(c) Less than
(d) (b) or (c)

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30) The rate of dividend is given for ______ of a share.
(a) Market value
(b) Face value
(c) Market value or Face value
(d) None of these

31) Kesar Keyonics has issued 30,000 shares of par value ₹10 each. The rate of dividend is
8 then the total declared dividend is
(a) ₹24,000
(b) ₹30000
(c) ₹8,000
(d) ₹10000

32) Kiran invested in shares of Face value ₹10 each and received dividend of ₹240 at 12%
rate. The number of shares he purchased was
(a) 20
(b) 2000
(c) 200
(d) 20000

33) A fee levied on an investor at the time of purchasing units is called

(a) Entry load
(b) Exit load
(c) Entry or Exit load
(d) None of these

34) A fee levied on an investor at the time of selling units is called

(a) Entry load
(b) Exit load
(c) Entry or Exit load
(d) None of these

35) The ratio of net assets of a mutual fund scheme to number of units outstanding is called
(a) Net assets
(b) Rate of dividend
(c) Average value
(d) None of these

36) Actual price received by the investor while selling the units back to the mutual fund
scheme is known as
(a) Redemption price
(b) Selling price
(c) Return price
(d) None of these

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37) Units of the mutual fund must be purchased or redeemed in
(a) Whole numbers
(b) Fractions
(c) Whole numbers or Fractions
(d) None of these

38) The investment plan in which a fixed amount is invested at regular intervals is known
as
(a) SIP
(b) Growth plan
(c) Distribution plan
(d) None of these
39) The payment made by a mutual fund to its unitholders from the income generated by it
is
(a) Profit
(b) Load
(c) Dividend
(d) None of these

40) A mutual fund with no entry or exit load is called

(a) Zero load fund
(b) New load fund
(c) Zero load fund or New load fund
(d) None of these

41) Net assets value is calculated and published daily for

(a) Open Ended Mutual Funds
(b) Closed Ended Mutual Funds
(c) Open Ended Mutual Funds and Closed Ended Mutual Funds
(d) None of these

42) In Mutual Funds, Return on Investment =

(a) Dividend
(b) Capital Gains
(c) Dividend + Capital Gains
(d) None of these

43) Mr. Darshan purchased 1000 units of Reliance Diversified Power Fund at ₹15,000 on
1st February, 2011. He sold all the units on 16th October, 2011 at N.A.V. of ₹21.12. Net
profit of Mr. Darshan is
(a) ₹6,120
(b) ₹12,240
(c) ₹9,270
(d) ₹9,272

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44) On 16th August, 2011, Ms. Divya invested ₹84,000 in Sundaram Paribas BNP Mutual
Fund with a front-end load of 5%. If 4,000 units were purchased, the N.A.V. on the date
of purchase was
(a) ₹21
(b) ₹20
(c) ₹40
(d) ₹30

45) Mutual Fund showed a change of 35% during the year 2010-2011. If the N.A.V. on 1st
April, 2010 was ₹70, the N.A.V. on 31st March, 2011 must be (a)
₹105
(b) ₹94.5
(c) ₹24.5
(d) ₹25.5

46) Mr. Chirag had purchased 1,000 units in an open end no load fund at ₹40 on 1st March,
2010. On 30th September, 2011, he sold all units for ₹50. The annualized percentage
change in N.A.V. is
(a) 25%
(b) 33.33%
(c) 16.67%
(d) 35%

47) Ms. Meghana invested ₹29,260 in an open-end equity fund on 1st May, 2011 with entry
load of 4.5%. If the N.A.V. on 1st May, 2011 was ₹140 and the current N.A.V. is ₹160,
the current value of investment is
(a) ₹32,000
(b) ₹33,440
(c) ₹32,720
(d) ₹32,730

48) Mutual Funds are managed by

(a) Board of Directors
(b) Assets Management Companies
(c) SEBI
(d) None of these

49) Every month, an investor pays a fixed sum on a fixed date in a specified scheme. This
scheme is called
(a) New Fund Offer
(b) Fixed Maturity Plan
(c) Systematic Investment Plan
(d) None of these

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50) In Rupee Cost Averaging, the concept of ______ is used.
(a) Harmonic Mean
(b) Arithmetic Mean
(c) Geometric Mean
(d) None of these

Unit II: Permutation, Combination and Linear Programming Problems:

10!
51) The value of 5! − is
4! 9!
5!
(a) 4! 9!
(b) 0
(c) 4 S
(d) – S

52) The value of 𝐶(100, 0) + 𝐶(100, 99) + 𝐶(99, 98) , is

(a) 200
(b) 101
(c) 100
(d) 0

53) Sachin can go to college by car, bus or train then the number of ways in which Sachin
can reach his Daddy’s office is
(a) 1
(b) 3
(c) 10
(d) 5

54) Rajesh can go to college by car, bus or train. Then the number of ways in which, Rajesh
can go to college and return by a different mode of transport are
(a) 3+2
(b) 𝟑 × 𝟐
(c) 3 × 3
(d) 3-2

55) The number of ways in which 4 children can occupy 4 chairs is

(a) 4X3X2X1
(b) 4X4X4X4
(c) 4+3+2+1
(d) 3+2X4X4

56) The total number of three digits, no digits repeated, that can be formed using the digits
1 to 5 are
(a) 60
(b) 125
(c) 27
(d) 52

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57) The total number of three digits, no digits repeated, that can be formed using the digits
0 to 9 are
(a) 900
(b) 648
(c) 720
(d) 530

58) Five persons including three women sit in a row to watch a movie. Then the number of
ways in which the arrangement can be done, so that the women do not occupy the end
seats is
(a) 120
(b) 100
(c) 20
(d) 12

59) Four books of mathematics, three on physics, two on chemistry, one English and one
Hindi are to be arranged on a shelf so that, the books of the same subjects are together
find the total number of arrangements
(a) 34560
(b) 120
(c) 1110
(d) 1520

60) The number of distinct permutations of the letter of the word HELLO are
(a) 120
(b) 60
(c) 30
(d) 10

61) A committee of four persons can be formed out of 3 boys and 2 girls in one of the
following ways
(a) 5
(b) 9
(c) 12
(d) 20

62) A committee of 3 boys and 2 girls can be formed out of 4 boys and 3 girls in one of the
following ways,
(a) 7
(b) 12
(c) 21
(d) 509

63) There are three nails on a wall and seven pictures. In how many ways can pictures be
put on all the nails?
(a) 21
(b) 42
(c) 210
(d) 120

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64) How many four digit numbers can be formed from the digits 0 to 9, if no digit is repeated
in the same number?
(a) 2688
(b) 4536
(c) 5040
(d) 3024

65) In how many ways can 5 men, 4 women and 3 children be arranged for a photograph so
that all the men are together and so are all women and all children,
(a) 60!
(b) 12!
(c) 5! 4! 3!
(d) 5! 4! 3! 3

66) A cricket team of 11 players is to be formed from 20 players including 6 bowlers and 3
wicket keepers. In how many different ways can a team be formed so that the team
contains exactly 2 wicket keepers and at least 4 bowlers
(a) 5445
(b) 27225
(c) 56450
(d) 50720

67) There are three sections in a question paper, each containing 5 questions, A candidate
has to solve any 5 questions, choosing at least one question from each section. In how
many ways can be make his choice?
(a) 2250
(b) 4500
(c) 1125
(d) 450

68) There are 11 points in a plane of which 5 are collinear. Find the number of distinct lines,
which pass through these points
(a) 55
(b) 82
(c) 46
(d) 92

69) Find the number of all possible arrangements of the letter of the word ‘TRIANGLE’
(a) 40320
(b) 2880
(c) 720
(d) 520

70) Linear programming problem relates to

(a) Complete programming
(b) an important business application
(c) lining up to watch a programme
(d) linear inequalities

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71) A linear programming problem is aimed at optimization ( maximization or minimization
of)
(a) Variables
(b) Constraints
(c) functions of degree 2 and above
(d) objective functions

72) Which one of the following is true, for a linear programming problem?
(a) Every L.L.P. always have a solution
(b) Every L.L.P. always have a unique solutions
(c) An L.L.P. can never have a unique solution
(d) If at all an L.L.P. has a solution it may not be unique

73) A solution of a Linear Programming Problem, whenever exists, is

(a) In every convex region
(b) In every concave region
(c) Within the feasible region
(d) Anywhere in the XY plane.

74) The objective function of an L.P.P. to be maximized, is Z = 3x + 4y. if all the corners
of its feasible region are (1,2) , B (2,5) , C (6,0) and D (3,3) then the solution of the
L.P.P. (maximum Z) occurs at
(a) A
(b) B
(c) C
(d) D

75) Linear programming problem is aimed to

(a) Optimization of variables
(b) Optimization of constraints
(c) Optimization of objective functions
(d) Optimization of non-linear functions

76) The solution of linear programming gives

(a) Value of objective function
(b) Value of constants
(c) Value of constraints
(d) Value of variables.

77) In order to solve linear programming problem, it is required to find

(a) Feasible region
(b) Optimum region
(c) Convex region
(d) Concave region

78) For maximization of a linear objective function in L.L.P. there

(a) Is always a unique solution
(b) Can never be a unique solution
(c) Can be a unique solution
(d) Is always multiple solution

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79) In a L.P.P. for a maximization of objective function ___________ a dual problem.
(a) There is always
(b) There cannot be
(c) There can never be
(d) There exists rarely

80) For constraints 2x + 3Y < 12 and 5x + y<10 and both x, y are non- negative ________
point lies in feasible region.
(a) (2,3)
(b) (5,4)
(c) (6,0)
(d) (1,1)

81) For the minimization of an objective function x + 2y subject to 4x + 3y > 36, x - 3y > 6
where x and y are non-negative, the optimum value of objective function can be
(a) 10
(b) 6
(c) 9
(d) – 4

82) The objective function of an L.L.P. to be minimized is z = x + 2y. if all the corners of
its feasible region are A (2,1), B (3,2), C (1, 0.5), and D (0,2), them the solution of the
L.P.P. (minimum z) occurs at
(a) A
(b) B
(c) C
(d) D

83) The Linear Programming Problem max z = x + 4y, under the constraint x > 5 , y > 6
has
(a) No solution
(b) 3 solutions
(c) Infinitely many solutions
(d) Solution at (5,6)

84) Find the total number of selections of 4 students out of 7 students

(a) 40
(b) 35
(c) 36
(d) 59

85) Find the numbers of committees of 12 members, that can be formed out of a group of 15
persons
(a) 554
(b) 545
(c) 455
(d) 635

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86) How many seating arrangements can be made for 5 students on 2 chairs?
(a) 10
(b) 30
(c) 40
(d) 20

87) In how many different ways one can arrange the letters of the word ‘MATHS’?
(a) 130
(b) 150
(c) 120
(d) 180

88) How many different numbers one can form using all the digits of the number 553225?
(a) 60
(b) 80
(c) 10
(d) 200

89) Find the total numbers of selections of 8 objects out of 10 objects.

(a) 50
(b) 60
(c) 35
(d) 45

90) Term ‘linear’ in LLP represents that

(a) Parameters value remains constant during the planning period.
(b) Relationship among all variables is linear
(c) Value of decision variables non – negative
(d) It has single objective function and constraints.

91) The mathematical model of an LP problem is important because

(a) It helps in converting the verbal description and numerical data into mathematical
expression.
(b) Decision – makers prefer to work with formal models
(c) It captures the relevant relationship among decision factors
(d) It enables the use of algebraic technique

92) Linear programming is a

(a) Constrained optimization technique.
(b) Technique for economic allocation of limited resources
(c) Mathematical technique
(d) All of the above

93) The first step in formulating a linear programming problem is

(a) Plot of graph
(b) Perform the sensitivity analysis
(c) Identity and define the decision variables
(d) Find out the redundant constraints

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94) Constraints in Linear Programming Problems.
(a) Limitations are expressed in mathematical equalities
(b) Assumption
(c) Goal is to be achieved
(d) A function to be optimized

95) Non – negativity restriction in LLP indicates that

(a) All decision variables must take on value equal to or greater than zero
(b) A positive coefficient of variables in objective function
(c) A positive coefficient of variables in any constraint
(d) Non – negative value of resources.

96) In how many ways number of 2 digits can be formed out of the four digits 1, 2, 3 and
4?
(a) 6
(b) 9
(c) 12
(d) 18

97) Find the number of words that can be formed using letters L, M, N and O ?
(a) 32
(b) 64
(c) 72
(d) 128

98) In how many ways the letters of the word ‘FAMILY’ can be arranged when F and Y
are always together?
(a) 60
(b) 120
(c) 240
(d) 480

99) Find the number of Triangles formed by joining the angular points of a polygon of 9
sides?
(a) 27
(b) 45
(c) 60
(d) 84

100) In how many ways can a group of 5 men and 2 women be made out of a total of 7 men
and 3 women?
(a) 63
(b) 90
(c) 126
(d) 45

18
Unit III: Summarization Measures:

101) Deciles D1, D2 ...............Dq are the values of variable which divide the data into.
(a) Equal parts
(b) 10 Equal Parts
(c) 100 equal parts
(d) None of these

102)For the data. 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15., D4 is

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

103) The portion between two consecutive percentiles of the entire frequency is
(a) 2%
(b) 3%
(c) 1%
(d) 10%

104) A good overage must satisfy.

(a) It should easy to understand & calculate
(b) It should be rigidly defined
(c) It should be amenable for further algebraic treatment.
(d) All a, b and c

105) For the data 1, 1, 2, 2, 3, 4, 5, 8, 9, 9 second quartile Q2 is

(a) 3
(b) 4
(c) 3.5
(d) 8

106) If xi = 10, n1 =75, x2 = 15 and n2 = 50 are arithmetic means & number of observations
of two groups. Then arithmetic mean of combines group is.
(a) 750
(b) 850
(c) 800
(d) 700

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107) For the data
x 2 3 4 5

+ 6 4 3 8

Arithmetic mean x is
(a) 4.6
(b) 2.6
(c) 3.6
(d) 1.6
108) For the data
Class 0-20 20-40 40-60 60-80
Frequencies 6 8 11 5

Arithmetic mean x is
(a) 35
(b) 40
(c) 45
(d) 50

109) Weighted Arithmetic mean for the data is

x 10 12 15
w 4 3 2
(a) 11.6
(b) 11
(c) 10
(d) 12

110) For the following data.

x 3 4 5 6 7
f 44 70 75 61 26
The mode is
(a) 4
(b) 5
(c) 6
(d) 7

20
111) For the data
Class 0-25 25-50 50-75 75-100

Frequency 50 70 80 40
The mode is
a. 55 b. 60
c. 65 d. 50
112) The medium for the data 2,2 3,3 4,4 5,5 ,5 ,6,6. Is
a. 4 b. 4.5
c. 5. d.5.5
113) Medium for the data
x 2 3 4 5 6 7 8
f 4 3 10 7 3 10 3
Is.
a. 4 b. 5
c. 6 d. 7
114) For the data

Class 0-20 20-40 40-60 60-80 80-100

Frequency 10 23 30 26 11

The modal class is

a. 20-40 b. 40-60
c. 60-80 d. 80-100
115) Three quartiles divide the data into.
a. 2 equal parts b. 3 equal parts
c. 4 equal parts d. 5 equal parts
116) The median is equal to
a. Q1 b. Q2
c. Q3 d. D7
117) Coefficient of variation is related with
a. Range b. Quartile deviation
c. Mean deviation d. Standard deviation

21
118) Which of the following is unitless
a. Range b. Q.D
c. M.D d. Coefficient of variation
119) Coefficient of range for the data 10, 20, 30, 40, 50, 60, 70, is
a. 0.75 b. 0.7
c. 0.65 d. 0.6
120) If the mean and coefficient of variation are 10 and 5 respectively them the standard
deviation is
a. 10 b. 50
c. 5 d. None
121) The standard deviation of a set of observation’s is 6.5. if each value is increated by
10, them the standard deviation is.
a. 2.5 b. 6.5
c. 3.5 d. None
122) Arithmetic mean of 50, 60 & 70 is
a. 50 b. 60
c. 70 d. None of the above
123) Mode of 5,9, 10,10, 15,29 is
a. 9 b. 10
c. 15 d. 20
124) Median of the data 5, 9, 10, 15, 20, is
a. 9 b. 10
a. 15 d. 20
125) A group of 20 boys have A.M. 5 and a group of 30 girls have A.M 6, Them the
combined A.M of the entire group is
a. 5 b. 6
c. 5.6 d. 8
126) The mode of data 2,3,4,5,6,7
a. 4 b. 5
c. 6 d. does not exist
127) In case of extreme values, the best measure of central tendency is.

22
a. A.M b. Median
c. Mode d. None of these
128) A good measure of control tendency should be.
a. based on all observations
b. capable of further algebraic treatment
c. rigidly defined
d. All of a, b and c
129) 30 mode is.
a. not affected by extreme values
b. computed even if some extreme values are not given
c. It is not as stable as the A.M
d. All a, b, c are true
130) A.M. of the data
X 1 2 3
f 4 5 2
Is
a. 6.66 b. 6
c. 5 d. 4
131) The range of the data
10, 20, 30, 40, 50 is
a. 20 b. 40
c. 30 d. None of these
132) Coefficient & quartile deviation with Q1, & Q3 as first & third quartiles is.
a. (Q3 -Q) /1 b. (Q3-Q1) / (Q3+Q1)
c. (Q3+Q1) /2 d. None of these
133) If Q1 =12 and Q3 =18 then Q.D, is.
a. 3 b. 15
c. 12 d. 18
134) The data is 4, 7 10, 13 then mean & mean deviation from mean are.
a. 8,3 b. 8.5, 3

23
c. 8-5,4 d. 8 4
135) For the data,
N = È f = 10, È fx =440, £ fx2 =22600 Then mean & standard deviation of the data are
a. 44, 18 b. 40, 18
c. 44, 9 d. 44, 3
136) The simplest measure of dispersion is.
a. Range b. Q.D
c. Mean deviation d., Standard deviation
137) Which measure of dispersion is least affected by the extreme values of the
observation is.
a. Range b. Q.D
c. M.D d. S.D
138) Which measure of dispersion considers middle 50% observations.
a. Range b. Q.D
c. M.D d. S.D
139) Which of the following is relative measure of dispersion.
a. Range b. Q.D
c. S.D d. Coefficient of variation
140) Of the A.M median & mode of the set of observations are the same than we conclude
that.
a. not possible
b. values of the observations must be identical
c. can not conclude any thing
d. The value are undefined
141) A.M of first group is 10, second group with A.M 8 & third group with A.M 4 Then
A.M & combined group is.
a. 3 b. 11
c. 12 d. None of these
142) the values of an observation are between 50 and 75. Then the average of the
observations can be.
a. 45 b. 80
c. 125 d. None of the above

24
143) The rage of the following data is
Marks 10-25 25-50 50-75 75-100
No. of Students 13 25 32 10

a. 90 b. 80
c. 70 d. 60
144) The observations are 12, 15, 20, 25, 31, 40, 60 Then Q1, Q2, & Quartile deviation of
the data are.
a. 15, 40, 12.5 b. 25, 40, 12.5
c. 15, 31, 12.5 d. 15, 40, 13.5
145) If Q1=25, Q3=45 Them coefficient of Q.D. is
a. 0.45 b. 0.28
c. 0.54 d. 0.38
146) For the data A.M = 171 and M.D from mean = 3.43 then coefficient of M.D. from
mean is.
a. 0.02 b. 0.05
c. 0.07 d. 0.09
147) If A.M of data = 3.5 and standard deviation is b = 2.062 Then coefficient of
dispersion C.D. is.
a. 0.5891 b. 0.38
c. 0.38 d. 0.68
148) If A.M x = 49 & S.D =6x = 3 Then the coefficient of variation C.V. is.
a. 6.5 b. 5.5
c. 7.5 d. 8.5
149) Mode of the data 2,3,4,5,6,7,8 is.
a. 4 b. 5
c. 6 d. 7
150) The median of the data 2,3,4,5,6,7,8 is
a. 4 b. 5
c. 6 d. 7

25
Unit IV: Elementary Probability Theory:
1) A collection of shares is called as .......
a)Stock b)Mutual fund c)Exchange d)None of above

2) If market value = face value, then share is said to be par.

a) Bellow b)At c)Above d)Among .
3)is regulatory body which control all activities of share market.
a) UGC b)UNO c)SEBI d)NABARD .
4) Dividend is given in percentage of ......
a)Bonus share b)Percentage share c)Preference share d)Face value .
5) A man invest Rs 10,400 in buying a share face value of Rs 100 at Rs 80per
share.Then the number of shares he has is ......
a)130 b)100 c)555 d)678 .
6) The value of 5!/4! - 10!/9!= .........
a)5 b)4 c)3 d)-5 .
7)Which among following is measure of central
tendency a)mean b)mode c)median d)All above .
8) The number of distinct permutation of the letter of the word
HELLO are. a) 120 b)60 c)30 d)10 .
9) Total number of three digits ,no digit s repeated ,that can be formed using
the digits 0 to 9 are
a)900 b)648 c)789 d)908
10) Number of ways 4 children can occupy 4 chair is .....
a)24 b)45 c)20 d)44.
11) Which one of the following is true,for linear programming
problem a)Every L.P.P always have a solution
b) Every L.P.P always have a unique solution
c) An L.P.P can never have a unique solution
d) If at all an L.P.P has a solution ,it may or may not be unique 14.
12) The objective function of an L.P.P. to be maximized is z= 3x + 4y.If all he
corners of its feasible region are A(1,2),B(2,5),C(6,0) and D(3,3), then the solution of
the L.P.P. (maximum z
) occurs at
a)A b)B c)C d)D .
13) The L.P.P. problem to be minimized has objective function z= 2x+y. If all the
consecutive corners of the feasible region are A(5,0),B(3,1),C(2,2),D(1,4) and
E(3,6),then
a)No solution b)Unique solution c)Infinitely many solution d)Cant
say. 14)The L.P.P min z= x +4y ,under the constraint 0< x< 5,
0<y<6
a)No solution b)3 solution c)infinitely many solution d)Solution at (0,0) .
15) A solution of L.P.P, whenever
exists, is a)In every convex region
b) In every concave region
c)Within the feasible region
d) Anywhere in XY plane
16) In case of extreme values the best measure of central
tendency is a)Arithmetic mean b)Median c)Mode d)None of
these
17) The purpose of average is to find .......

26
a)Representative of all the observation

27
 b) A rough estimate of where the set of observation
lies c)Variation in the values
d)None of above 20.
18) If airthmetic mean ,mode, and median are same then we
conclude that a)Not possible
b) The value of the observation must be identical
c) Cannot conclude anything
d) The values are undefined.
19) The combine arithmetic mean of group of men with arithmetic mean
10,women with arithmetic mean 8 and children with arithmetic mean 4 is
a)3 b)11 c)12 d)None of these .
20) The simplest measure of dispersion to indicate the extreme variation in the data is .....
a)Range b)Quartile deviation c)Mean deviation d)Standard deviation .
21) The standard deviation of set of observation is 6.5.If each value is increased by
10,then the standard deviation is
a)2.5 b)6.5 c)3.5 d)None of these.
22) Three fair coins are tossed, then the probability of at least one H is.
a)1 b)5 c)7/8 d)1/8 .
23) From well shuffled pack of cards, two cards are drawn at random. Then the
probability of getting one red card and one black card is
a)1/4 b)26/51 c)1/52 d)None of these .
24) Six red pencils and three blue pencils are randomly placed in a row.Then
the probability that no two pencils are together is …
a)3/10! B)7/15 c)3/10 d)None of these .
25) The optimistic decision maker will use the principal of ......
a) Maximin b)Minimax c)Maximax
d)Laplace 26)Probability has …. Unit of
measurement. a)Rupees b) c.m c) hours
d) None of these 27)Probability can be
a) greater than equal to zero
b) greater than 1.
c) less than 1
d) between 0 and 1
28)When two dice are tossed , the probability of getting six as uppermost face on
both dice is
a) ½ b) 1/6 c) 1/36 d) 1/3
29)Which one of the following is probability
ratio ? a)3/2 b) 17/11 c) 2/3 d)-1/2
30) If pack of 52 well shuffled cards is drawn, the chances of getting
queen is a) ¼ b) 1/52 c) 1/3 d) 1/13
31)A box contain 2 red marbel balls,3 white marbel balls, 5 green marbel balls.If 2
balls are drawn at random,the chance of getting both white is
a) 2/3 b) 3/0 c) 2/10 d) 3/45
32) All possible outcomes of statistical experiment are called
a) Cyber space b) Sample space c) space d) experiment
33)An occurrence of any outcomes to statistical experiment is called
a) sample space b)experiment c)event d)probability
34) A statistical experiment means

28
 a) action which has reaction
b) action which has no outcomes
c) action which has certain outcomes
d) action which has uncertain outcomes
35) Two event are said to be mutually exclusive when
a) both of them occurs together
b) none of them
occurs c)occurrence is
uncertain d)only one of
them occurs
36)Complementary events
are
a) not mutually exclusive b)independent c) exhaustive d) impossible event
37)Two events are said to be exhaustive when
a) both of them occurs together
b) occurrence of one avoid occurrence of other
c) Occurrence or nonoccurence of one does not affect the other
d) Taken together constitute sample space
38)An unbiased coin tossed twice,if A denotes the event all tails then P(A)
a) ¼ b) ½ c ¾ d) 1
39)If A and B are any two events associated with experiment, then probability of
occurrence of events A or B or both A and B is given by
a) Complementary probability
theorem b)Multiplication theorem of
probability c)Addition theorem of
probability
d)Joint probability theorem
40)If A and B are any two events associated with experiment, then probability of
occurrence of events A and B is given by
a)Complementary probability
theorem b)Multiplication theorem of
probability c)Addition theorem of
probability
d)Bayes probability theorem
41) If P(A)= 2/3 P(B)=1/2,P(AU B)=5/6 then P(B/A) is
a)1/3 b) 1/6 c) ½ d) 2/3
42)From well shuffled pack of 52 cards ,two cards are drawn without replacement
,probability that both these cards are black
will be a) ½ b) 13/51 c) 25/102 d) 25 /51
43)For a variable x assuming values 0,1,2 the probability
distribution a) P(0) =0, P(1) =1,P(2)=2
b) P(0)=0, P(1)=1/2, P(2)= 1/3
c) P(0)=1/3,P(1)=1/3, P(2)=1/3
d) P(0)=1, P(1)=1 P(2)=1/2

44) For variable x can assume values 10 or 50 wih probability ¾ and

1/4repectivly then expected value of variable is
a) 30 b) 20 c) 40 d) 10
45) A bag contains 3 copper coin and 7 siver coin.If a coin is drawn,then the
chance to get silver coin is
29
a)7/3 b) 3/7 c) 7/10 d) 3/10
46) A box contain 2 red marbel balls, 3 white marble balls,5 green marble balls.If 2
balls are drawn at random,the expected number of white ball is
a) 3/45 b) 21/45 c) 27/45 d) 48/45
47) If the frequency distribution

is X : 1 2 3 4
Frequency : 19 75 61 45
Then P(X) = 3 is equal to
a) 19/200 b) 75/100 c) 0.5 d) 61/100

48)Statistical experiment and biological experiment are

a) same b) sometime same c) most

49)On throwing a fair dice A win R 60 if 6 is thrown.Otherwise he loses Rs 30
then his expected gain is Rs …

a) 35 b) 45 c) 90 d) 390
50)A bag contains 4 coins of Rs 5,6coins of Rs 2,a coin is drawn at random, the
expected gain is
a)3.5 b) 5 c) 8.5 d) 3.2
51)Quartiles for following data 29,12,26,19,24,36,21,33,35
a)Q1= 20 Q2= 26 Q3=34 b) Q1=30 Q2= 36 Q3 = 44,
c) Q3= 40 Q2 32 Q3 = 36 d) Q1= 21 Q2= 44 Q3= 54
52)The median for
5,6,6,5,4,4,5,3,2,2 a) 3 b) 5 c) 2
d)4.5
53)Calculate the mean deviation for mean for following

data 168,164,172,169,178,173,173
a) 4.65 b) 3.43 c) 5.76 d) 6.54

54)Standard deviation for following

data is X: 0 2 4 6 8
Y: 2 3 5 6 4
a) 5.5 b) 6.9 c)4.6 d) 2.4

55) The value of nC0

is a) 0 b)2 c) 1 d)
5
56) The value of nC1 is
30
 a)1 b) 2 c)3 d)4
57)An investor sold his 121.5 units of cerain Mutual fund when its NAV was 31.3.

Then amount recived by him is

a) 3751 b) 3802.95 c) 3782 d) None of these

58) Nitin sold 200 shares at market value Rs 250 each with brokerage 0.3
%.Then the amount he got from this deal is
a) 50150 b) 48500 c) 49850 d) 50,000
59)What is the income on he investment of 32300 in 8 % stock

at 95 a) 4432 b) 2,720 c) 1290 d) 9087

60) How many shares of market value Rs 800 were sold for amount
39840, the brokerage being 0.4 % ?
a)57 b)12 c) 50 d) 32

Unit V: Decision Theory Multiple

Choice Questions
201) In case of stage decision making problem, a decision is to be chosen
the process from the given list of well-defined alternatives.
(a) only once at the beginning of
(b) many times in
(c) never in
(d) not necessarily at the beginning

202) In the problem of decision making all possible situations are .

(a) sometimes known
(b) never known
(c) always known
(d) rarely known

203) Decision maker has over the occurrence of situation.

(a) always control
(b) no control
(c) sometime control
(d) rarely control
204) The possible situation in decision making are all known, there is of exact
solution that will occur in future at the time of decision making.
(a) some knowledge
(b) complete knowledge
(c) partial knowledge
(d) no knowledge

205) Chances of occurrence of situations are _ known at the time of decision

making under certainty.

31
 (a) never
(b) rarely
(c) sometimes
(d) always

206) Decision maker defines effectiveness measure which is combination of .

(a) decision and probability
(b) situation and pay off
(c) situation and decision
(d) situation and probability
207) The nature of views of decision maker is .
(a) maximization type
(b) minimization type
(c) optimistic, pessimistic and normal
(d) stationary type

208) In case of pay-off table available maximax criterion can be considered as .

(a) optimistic
(b) pessimistic view
(c) normal view
(d) sadistic view

209) In case of pay-off matrix being available for decision making then maximin criterion
can be considered as .
(a) optimistic view
(b) pessimistic view
(c) normal view
(d) absurd

210) Decision maker’s views may be classified as .

(a) pessimistic type
(b) maximization type
(c) minimization type
(d) none of these

211) In case of pay-off matrix available for decision making then maximize average can be
considered as .
(a) optimistic view
(b) pessimistic view
(c) normal view
(d) absurd

212) In case of opportunity loss matrix being available for decision making then minimum
criterion is considered as .
(a) optimistic view

32
 (b) pessimistic view
(c) normal view
(d) absurd

213) The following matrix gives the payoff in rupees of different strategies (acts) 𝑆1, 𝑆2, 𝑆3
against different events 𝐸1, 𝐸2, 𝐸3, 𝐸4:
Events
Strategy
𝐸1 𝐸2 𝐸3 𝐸4
𝑆1 8000 -500 10000 15000
𝑆2 12000 7000 500 0
𝑆3 13000 10000 -1000 2000
What decision can be taken using maximax criterion?
(a) 𝐸1
(b) 𝐸2
(c) 𝐸3
(d) 𝐸4

214) In decision making problems there is only one and a number of alternatives.
(a) policy maker
(b) policy
(c) state of nature
(d) pay off

215) In decision making problem there is only one decision maker,

alternatives and more than one state of nature.
(a) more than 1
(b) only one
(c) less than 1
(d) none of these

216) Decision tree calculation begins from left to right

(a) sometimes
(b) always
(c) rarely
(d) never

217) The optimistic decision maker will use the principle of

(a) Maximin
(b) Minimax
(c) Maximax
(d) Laplace

218) The pessimistic decision maker will use the principle of

(a) Maximin
(b) Minimax
(c) Maximax
(d) EOL

33
219) A type of decision making environment is
(a) certainty
(b) uncertainty
(c) risk
(d) all of the above

220) Which of the following is not used in decision making under uncertainty?
(a) maximax
(b) Laplace
(c) minimax
(d) EMV

221) Which of the following is not applicable in decision making under risk?
(a) Maximize expected return
(b) Maximize return
(c) Minimize the expected regret
(d) knowledge of likely hook of occurrence of each state of nature.

222) Essential characteristics of a decision model are:

(a) states of nature
(b) decision alternatives
(c) pay off
(d) all of the above

223) Which of the following is not true?

(a) states of nature are under decision maker’s control
(b) alternatives courses of action are under the control of the decision maker
(c) Laplace criterion can be considered as decision making under risk
(d) none of these

224) The following matrix gives the payoff in rupees of different strategies (acts) 𝑆1, 𝑆2, 𝑆3
against different events 𝐸1, 𝐸2, 𝐸3, 𝐸4:
Events
Strategy
𝐸1 𝐸2 𝐸3 𝐸4
𝑆1 8000 -500 10000 15000
𝑆2 12000 7000 500 0
𝑆3 13000 10000 -1000 2000
What decision can be taken using maximin criterion?
(a) 𝑬𝟏
(b) 𝐸2
(c) 𝐸3
(d) 𝐸4

34
225) The following matrix gives the payoff in rupees of different strategies (acts) 𝑆1, 𝑆2, 𝑆3
against different events 𝐸1, 𝐸2, 𝐸3, 𝐸4:
Events
Strategy
𝐸1 𝐸2 𝐸3 𝐸4
𝑆1 8000 -500 10000 15000
𝑆2 12000 7000 500 0
𝑆3 13000 10000 -1000 2000
What decision can be taken using Laplace criterion?
(a) 𝑬𝟏
(b) 𝐸2
(c) 𝐸3
(d) 𝐸4

226) A Principal of an institution wants to introduce one of the 3 new courses 𝐶1, 𝐶2, 𝐶3. He
expects the demand can be low, medium or high. The following payoff is available for him:
Courses
Strategy
𝐶1 𝐶2 𝐶3
Low 5000 8000 1500
Medium 20000 10000 5000
High 25000 20000 18000
If the principal is an optimistic person which course he will introduce?
(a) 𝐶1
(b) 𝐶2
(c) 𝐶3
(d) 𝐶1 and 𝐶2

227) Which of the following is used in decision making under risk?

(a) Maximax
(b) Laplace
(c) Minimax
(d) EMV

228) Which of the following is used in decision making under risk?

(a) Maximax
(b) Laplace
(c) Minimax
(d) EOL

229) Which of the following is not applicable in decision making under uncertainty?
(a) Maximax
(b) Laplace
(c) Minimax
(d) EOL

35
230) The maximax, minimax and maximin criteria are examples of .
(a) decision making under uncertainty
(b) decision making under certainty
(c) decision making under risk
(d) decision making under conflict.

231) The Laplace, minimax and maximin criteria are examples of .

(a) decision making under certainty
(b) decision making under uncertainty
(c) decision making under risk
(d) decision making under conflict.

232) The Laplace criterion follows under .

(a) decision making under risk
(b) decision making under certainty
(c) decision making under uncertainty
(d) decision making under conflict.

233) The Expected Monetary Values is part of .

(a) decision making under risk
(b) decision making under certainty
(c) decision making under uncertainty
(d) decision making under conflict.

234) The Expected Opportunity Loss is the method of .

(a) decision making under certainty
(b) decision making under uncertainty
(c) decision making under risk
(d) decision making under conflict.

235) The Expected Value of Perfect Information is the type of .

(a) decision making under certainty
(b) decision making under uncertainty
(c) decision making under risk
(d) decision making under conflict.

236) Which of the following is not applicable in decision making under risk?
(a) Expected Value of Perfect Information
(b) Expected Monetary Values
(c) Criterion of Equally Likelihood
(d) Expected Opportunity Loss

36
237) Which of the following is the method used in decision making under uncertainty?
(a) Expected Value of Perfect Information
(b) Expected Monetary Values
(c) Criterion of Equally Likelihood
(d) Expected Opportunity Loss

238) In the decision maker identifies the maximum regret for each act and
selects the act for which maximum regret is minimum
(a) Expected Value of Perfect Information
(b) Expected Monetary Values
(c) Minimax Criterion
(d) Expected Opportunity Loss

239) In the decision maker finds the average outcome for each act and
selects up the act corresponding to maximum value.
(a) Expected Value of Perfect Information
(b) Laplace Criterion
(c) Minimax Criterion
(d) Expected Opportunity Loss

240) The expected value of regret is commonly called as .

(a) Expected Value of Perfect Information
(b) Expected Monetary Values
(c) Minimax Criterion
(d) Expected Opportunity Loss

241) From the decision tree given below the best is A using .

(a) Expected Value of Perfect Information

(b) Expected Monetary Values
(c) Minimax Criterion
(d) Expected Opportunity Loss

37
242) From the decision tree given below the best is B using .

(a) Expected Monetary Values

(b) Minimax Criterion
(c) Expected Opportunity Loss
(d) Expected Value of Perfect Information

243) From the decision tree given below the best is B using .

(a) Minimax Criterion

(b) Expected Opportunity Loss
(c) Expected Monetary Values
(d) Expected Value of Perfect Information

244) The best decision is to launch the soap with type I using .

(a) Maximax
(b) Laplace
(c) Minimax
(d) EOL

38
245) The best decision is to launch the soap with type I using .

(a) Maximax
(b) Laplace
(c) Minimax
(d) EOL

246) The best decision is to launch the soap with type I using .

(a) Maximax
(b) Laplace
(c) Minimax
(d) EOL

247) The best decision is using minimax.

(a) A1
(b) A2
(c) A3
(d) A4

39
248) The best decision is A1 using _.

(a) Maximax
(b) Laplace
(c) Minimax
(d) Maximin
249) In the objective is to maximize the expected profit or minimize the
expected opportunity loss.
(a) decision making under certainty
(b) decision making under uncertainty
(c) decision making under risk
(d) decision making under conflict

250) The decision maker faces multiple states of nature but has no means to arrive at the
probability values to the likelihood of occurrences of these states of nature in
.
(a) decision making under certainty
(b) decision making under uncertainty
(c) decision making under risk
(d) decision making under conflict

40