You are on page 1of 52

STATISTICS

Intermediate PART-Ii
Based on the Past Papers of Lahore and Other Boards Up to 2019

A Guarantee to the Success

WAQAS NADEEM MUHAMMAD AMJAD


M.PHIL STATISTICS M.PHIL ECONOMICS
LECTURER IN STATISTICS ASSISTANT PROFESSOR
GOVT. COLLEGE FOR BOYS GOVT. COLLEGE FOR BOYS
GULBERG, LAHORE. GULBERG, LAHORE.
Chapter wise Paper Setting Scheme BISE LHR

TOTAL 85 Marks
Q.1 MCQS (1 Mark Each) 17 Marks

Q.2 Attempt 8 Short Questions from 12 Questions. (2 Marks Each) 16 Marks

Q.3 Attempt 8 Short Questions from 12 Questions. (2 Marks Each) 16 Marks

Q.4 Attempt 6 Short Questions from 9 Questions. (2 Marks Each) 12 Marks

Attempt 3 Questions from Q.5, Q.6, Q.7, Q.8 and Q.9. (8 Marks Each) 24 Marks

Multiple Choice Short Long


Chapter Weightage Marks
Questions Question Questions

10 3 5 1 17.07% 21

11 3 6 1 18.70% 23

Half Question
12 1 2 7.32% 9
(1 Part)
Half Question
13 2 3 9.76% 12
(1 Part)

14 3 6 1 18.70% 23

Half Question
15 2 4 11.38% 14
(1 Part)
Half Question
16 2 5 13.01% 16
(1 Part)

17 1 2 None 4.07% 5

Chapters No. Chapter Name Page


10 Normal Distribution 1
11 Sampling and Sampling Distributions 8
12 Estimation 15
13 Testing of Hypothesis 20
14 Simple Regression and Correlation 25
15 Association 32
16 Time Series 37
17 Orientation of Computers 43
Past Paper & Practical Paper 47-50
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 10 Normal Distribution


Write Short answers of the following questions.
1. Define normal distribution.
The normal distribution is a probability distribution of a continuous random variable x ranges from
-∞ to +∞ with parameters µ and σ2 and having the probability density function as
( )
( )

Normal distribution is the limiting form of the binomial distribution, when n is large and p is not
small.
2. Define normal probability density function or Write down the equation of the normal curve.
A continuous random variable x is normally distributed if and only if its probability density
function is
( )
( )

3. Define the normal frequency distribution.
If the normal probability distribution is multiplied by N, it is called normal frequency distribution.
( )
( )

4. Explain the normal curve OR Explain the shape of the normal distribution.
The graph of the normal probability density function is called a normal curve. Normal curve is uni-
modal, symmetrical and bell shaped. The shape of normal distribution depends on its parameters.
5. How many parameters normal distribution has?
Normal distribution has two parameters that are µ and σ2.
6. Explain the parameters of the normal distribution. OR What is the role of µ and σ in normal
distribution?
Normal distribution has two parameters that are µ and σ2. µ controls the relative position of the
normal curve and σ controls the relative flatness of the normal curve.
7. Write properties of normal distribution.
1. The normal probability distribution is a continuous distribution that ranges from -∞ to +∞.
2. Total area under the normal curve is unity.
3. The normal curve is uni-modal with mode µ and maximum ordinate is at x = µ.
( )

4. The mean, median and mode are coincide. i.e. Mean = Median = Mode = µ
5. The lower and upper quartiles are equidistant from its mean. i.e.
6. All odd order moments about mean are zero. i.e.
7. Special areas under the curve.
a. Approximately 68.27% of the area under the curve lies between µ-σ and µ+σ.
b. Approximately 95.45% of the area under the curve lies between µ-2σ and µ+2σ.
c. Approximately 99.73% of the area under the curve lies between µ-3σ and µ+3σ.
8. The lower and upper quartile of the normal distribution are

9. The quartile deviation and mean deviation of the normal distribution are

1
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

10. The mean and standard deviation of normal distribution can also be obtained as

11. The moments and moments ratio of the normal distribution are
( )
12. Normal distribution has inflection points at (µ - σ) and (µ + σ).
8. What is the range of normal variable?
The normal variable ranges from -∞ to +∞.
9. Define standard normal variable.
A normal random variable x with mean µ and standard deviation σ can be easily transformed into a
standard normal random variable Z by the transformation , which has mean zero and
variance 1.
10. Define the standard normal distribution.
A standard normal variable follows the standard normal distribution with mean 0 and
variance 1, if it has the following probability density function
[ ]
( )

11. Write down the pdf of a normal distribution with zero mean and unit variance. OR Write
the pdf of the standard normal distribution.
[ ]
( )

12. Write properties of standard normal distribution.
1. The standard normal distribution is a continuous that ranges from -∞ to +∞.
2. Total area under the standard normal curve is unity.
3. The mean, median and mode are coincide. i.e. Mean = Median = Mode = 0
4. The lower and upper quartiles are equidistant from its mean.
5. All odd order moments about mean are zero. i.e.
6. The lower and upper quartile of the standard normal distribution are

7. The quartile deviation and mean deviation of the standard normal distribution are

8. The mean and standard deviation of standard normal distribution are 0 and 1.
9. The moments and moments ratio of the normal distribution are
( )
10. Normal distribution has inflection points at -1 and +1.
13. If X ~ N (24, 16). Find Q1, Q2 and Q3.
( )
( )
14. Write down the points of inflection of normal distribution and standard normal distribution.
Normal distribution has inflection points at x = µ - σ and x = µ + σ
Standard Normal distribution has inflection points at x = -1 and x = +1
15. In a normal distribution, µ = 30 and σ = 10. Find mean deviation and quartile deviation.
( ) ( )

2
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

16. Find S.D, M.D and Q.D of standard normal distribution.

17. What is the relationship between the binomial distribution and normal distribution?
Normal distribution is the limiting form of the binomial distribution when the number of trials n is
very large and neither p nor q is very small.
18. Explain why β1 equals zero in normal distribution? OR Why normal distribution is
symmetrical?
As and in normal distribution , so that‟s why β1 equals zero in the normal

distribution. Since the value of β1 equals zero so that‟s why normal distribution is symmetrical.
19. Explain why the normal distribution is bell shaped?
As in normal distribution, so that‟s why normal distribution is Mesokurtic or bell shaped.
20. Quartile deviation of a normal distribution is 3.3725. Find the approximate value of S.D.

21. In a normal distribution, the lower and upper quartiles are 8 and 17. Find mean and S.D.

22. What is the relation between mean, median and mode in the normal distribution?
The mean, median and mode are coincide. i.e. Mean = Median = Mode = µ
23. What is the relation between mean, median and mode in the standard normal distribution?
The mean, median and mode are coincide. i.e. Mean = Median = Mode = 0
24. How much area of the normal distribution lies between mean ± (S.D)?
Approximately 68.27% of the area under the curve lies between µ - σ and µ + σ.
25. How much area of the normal distribution lies between mean ± 2(S.D)?
Approximately 95.45% of the area under the curve lies between µ - 2σ and µ + 2σ.
26. How much area of the normal distribution lies between mean ± 3(S.D)?
Approximately 99.73% of the area under the curve lies between µ - 3σ and µ + 3σ.
27. In normal distribution, µ2 = 4, find µ3 and µ4.
( ) ( )
28. Write odd order moments of the normal distribution.
All odd order moments about mean are zero. i.e. μ1 = μ3 = μ5 = = 0
29. Write the equations of the lower and upper quartiles in the normal distribution.

30. Write the equations of the lower and upper quartiles in the standard normal distribution.

31. Write the point of maximum ordinate of normal distribution and standard normal distribution.
Maximum ordinate of the normal distribution ( )

Maximum ordinate of the standard normal distribution ( )



32. Find first four mean moments of the normal distribution, when the standard deviation is 4.
( ) ( )
33. Find the value of , when the variance of a normal distribution is 15.
( ) ( )

3
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

34. If X ~ N (50, 25). Find mean deviation.


As µ = 50, σ2 = 25 and σ = 5. Now M.D = 0.7979 σ = 0.7979(5) = 4
35. The mean deviation of a normal distribution is 16. Find the value of its standard deviation.
Now M.D = 0.7979 σ → 16 = 0.7979 σ → σ = 20
36. If X ~ N (15, 4). Find the value of Z, if X =18.
As µ = 15, σ2 = 4 and σ = 2. Now
37. In a normal distribution, Q1 = 15 and Q3 = 25. Find mean median, mode and standard deviation.
̃ ̂

38. If X ~ N (50, 25). What percentage of the area falls between 40 and 60.
Here µ = 50, σ2 = 25 and σ = 5 and the values of 40 and 60 can be obtained by µ - 2σ and µ + 2σ.
So percentage of area falling between 40 and 60 is 95.45%.
39. In a normal distribution, Mean = 9 and Q3 = 17. Find standard deviation.
As Q3 – Mean = Mean – Q1 → 17 – 9 = 9 – Q1 → Q1 = 1.

40. In normal distribution, µ4 = 243, find µ3 and µ2.

( )
41. Is every symmetrical distribution a normal distribution?
No, only that symmetrical distribution is normal which is bell shaped and follows the equation of
the normal curve.
42. If ( ), find the value of maximum ordinate.

( )
√ √
43. The mean of a normal distribution is 20, what will be its mode?
In normal distribution, mean median and mode are equal. So mode will be 20.
44. What is the importance of normal distribution?
The normal distribution plays an important role in theoretical as well as applied statistics. A
number of natural phenomena such as weight, height, temperature, etc. follow the normal
distribution. It is the foundation of statistical inference.
45. In a normal distribution, M.D = 3.9895. Find S.D, Q.D, second and fourth mean moment of
the normal distribution.
M.D = 0.7979 σ → 3.9895 = 0.7979 σ → σ=5
Q.D = 0.6745σ = 0.6745(5) = 3.3725
( ) ( )

4
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Multiple Choice Questions


Tick the correct answer from the given options.
1. Normal distribution is the limiting form of the:
(a) Binomial distribution (b) F-distribution (c) Chi-square distribution (d) T-distribution
2. Normal distribution has number of parameters?:
(a) Two (b) Four (c) One (d) Three
3. Normal distribution has parameters:
(a) n, σ (b) n, σ2 (c) µ (d) µ, σ2
4. The location of the Normal distribution depends upon OR In a normal distribution, the parameter
which controls the relative position of the curve is:
(a) n (b) σ2 (c) µ (d) M.D
5. The shape of the Normal distribution depends upon OR In a normal distribution, the parameter
which controls the relative flatness of the curve is:
(a) σ (b) n (c) µ (d) M.D
6. Normal distribution is represented by:
(a) ( ) (b) ( ) (c) ( ) (d) ( )
7. Normal distribution is:
(a) Uni-model (b) Bi-modal (c) Tri-modal (d) Multi-modal
8. ∫ ( ) is always equal to OR Total area under the normal curve is OR P(-∞ <X< ∞) equal to
(a) <1 (b) 1 (c) 0 (d) >1
9. Area under the normal curve on both sides of mean is OR ( ) ( )
(a) 0 (b) 1 (c) 0.5 (d) None
10. In a normal distribution, µ = 10 and σ = 5. The value of mode is:
(a) 5 (b) 10 (c) 100 (d) 25
11. In a normal distribution, Median = 25, the value of mode is:
(a) 5 (b) 25 (c) 100 (d) 50
12. Normal distribution has points of inflections :
(a) Two (b) Four (c) One (d) Three
13. The shape of normal curve is also called:
(a) Leptokurtic (b) Platykurtic (c) Mesokurtic (d) Skewed
14. In a normal distribution, the value of β1 and β2 are respectively:
(a) 0 & 3 (b) 0 & 1 (c) 3 & 0 (d) 1 & 3
15. Which of the following is true for the normal curve? OR All normal distributions are
(a) Bell-Shaped (b) Uni-modal (c) Symmetrical (d) All
16. The coefficient of skewness of normal distribution is OR In normal distribution, β1 equals to
(a) 0 (b) 3 (c) 1 (d) -3
17. In normal distribution, Second moment about mean ( ) is called:
(a) Mean (b) Variance (c) Skewness (d) Kurtosis
18. In normal distribution, third moment about mean ( ) is:
(a) 0 (b) 1 (c) 3 (d) 100
19. The maximum ordinate of the normal distribution is:
(a) (b) (c) (d) None
√ √ √

5
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

20. In normal distribution, the value of µ4 is equal to


(a) (b) (c) 3 (d)
21. In a normal distribution, x lies between OR The range of normal distribution is:
(a) -∞ to 0 (b) 0 to 1 (c) -∞ to +∞ (d) -1 to +1
22. In a normal distribution, Q.D (x) is equal to
(a) 0.9545σ (b) 0.9827σ (c) 0.6745σ (d) 0.7979σ
23. In a normal distribution, Q1 or X0.25 is equal to
(a) (b) (c) (d)
24. In a normal distribution, Q3 or X0.75 is equal to
(a) (b) (c) (d)
25. In a normal distribution, M.D (x) is equal to
(a) 0.9545σ (b) 0.9827σ (c) 0.6745σ (d) 0.7979σ
26. If standard deviation of a normal distribution is 10, then the value of M.D (x) is:
(a) 6.979 (b) 7.979 (c) 8.797 (d) 7.797
27. If standard deviation of a normal distribution is 10, then the value of Q.D (x) is:
(a) 6.745 (b) 7.745 (c) 8.745 (d) 5.745
28. If µ2 = 4, then what will be µ4?
(a) 32 (b) 24 (c) 48 (d) 40
29. In normal distribution, the mean deviation is equal to
(a) (b) (c) (d)
30. In normal distribution, the value of β2 is equal to
(a) (b) (c) 3 (d)
31. The lower and upper quartiles of a normal distribution are equidistant from its:
(a) Standard Deviation (b) Mean (c) Variance (d) None
32. In a normal distribution, mean, median and mode are:
(a) Not equal (b) Positive (c) Equal (Identical) (d) None
33. For the standard normal distribution, P (Z > mean) is:
(a) Less than 0.5 (b) More than 0.5 (c) Equal to 0.5 (d) Equal to 1
34. In a normal distribution, µ = 0 & σ = 1 (standard normal distribution). The points of inflections are
(a) 0 & 1 (b) -1 & 1 (c) -1 & 0 (d) -2 & 2
35. Standard normal random variable has mean and variance:
(a) 0, 1 (b) µ, σ (c) 1, 0 (d) None
36. A standard normal curve has maximum ordinate at:
(a) z = 0 (b) z = 1 (c) z = -1 (d) None
37. In standard normal distribution, the value of µ4 is equal to
(a) (b) (c) 1 (d) 0
38. In a standard normal curve, the value of Q1 is:
(a) 0.6745 (b) 0.7745 (c) -0.6745 (d) 0.9545
39. In a standard normal curve, the value of Q3 is:
(a) 0.6745 (b) 0.7745 (c) -0.6745 (d) 0.9545
40. The Coefficient of variation of the standard normal distribution is:
(a) 0 (b) 1 (c) ∞ (Infinity) (d) None

6
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

41. In normal distribution, 90% of the area lies between the limits:
(a) (b) (c) (d)
42. In normal distribution, 95% of the area lies between the limits:
(a) (b) (c) (d)
43. In normal distribution, 99% of the area lies between the limits:
(a) (b) (c) (d)
44. ( ) is equal to OR The area contained within the normal limits
OR If Z is N(0,1) then P (-1 ≤ z ≤ 1) is equal to
(a) 0.8827 (b) 0.9827 (c) 0.6827 (68.27%) (d) 0.7827
45. ( ) is equal to OR The area contained within the normal limits
OR If Z is N(0,1) then P (-2 ≤ z ≤ 2) is equal to
(a) 0.7545 (b) 0.8545 (c) 0.9545 (95.45%) (d) 0.6545
46. ( ) is equal to OR The area contained within the normal limits
OR If Z is N(0,1) then P (-3 ≤ z ≤ 3) is equal to
(a) 0.9973 (99.73%) (b) 0.9873 (c) 0.9827 (d) 0.9927
47. ( ) is equal to
(a) 0.1827 (b) 0.2827 (c) 0.6827 (d) 0.3173
48. The area to the left of µ + σ for a normal distribution is approximately:
(a) 0.16 (b) 0.34 (c) 0.59 (d) 0.84
49. If X ~ N (55, 100), then area to the right of the X=55 is:
(a) 0 (b) 0.5 (c) 0.75 (d) 1
50. ( ) is equal to:
(a) 0 (b) -1 (c) 1 (d) -3
51. ( ) is equal to:
(a) 0 (b) -1 (c) 1 (d) -3
52. If the lower and upper quartiles of a normal distribution are 25 and 55, then the value of µ is:
(a) 35 (b) 25 (c) 30 (d) 40
53. If X ~ N (55, 100), then the value of µ is:
(a) 55 (b) 10 (c) 100 (d) 1
54. If X ~ N (55, 100), then the value of σ is:
(a) 55 (b) 10 (c) 100 (d) 1
55. A normal curve has maximum ordinate at:
(a) Mean (b) Median (c) Mode (d) All
56. The relation between M.D, S.D and Q.D in normal distribution is:
(a) Q.D = M.D = S.D (b) Q.D ≥ M.D ≥ S.D (c) Q.D ≤ M.D ≤ S.D (d) None
57. Normal curve always:
(a) Stays above x-axis (b) Touches x-axis (c) Goes below x-axis (d) None

Important Theorems
( ) ( ) ( ) ( )
( ) ( ) ( ) (| | ) ( )
( ) ( ) ( ) (| | ) ( )

7
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 11 Sampling and Sampling Distributions


Write Short answers of the following questions.
1. Define population.
The totality of objects to be studied is called a population or universe. OR
A set of individuals or objects having some common measureable characteristic is called
population. For example, workers in a factory, students in a college, hospitals in a city, etc.
2. What are the different types of population?
(i) Infinite Population and Finite Population
(ii) Target Population and Sampled Population
(iii) Existent Population and Hypothetical Population
3. Distinguish between finite and infinite population.
A population which contains limited number of observations is called finite population. For
example, workers in a factory, students in a college, etc.
A population which contains unlimited number of observations is called finite population. For
example, fish in sea, stars in the sky, the number of red blood cells in a person's body, etc.
4. Explain term sampled population and target population.
The population from which we actually draw the sample is called sampled population.
The population about which we want to draw inferences is called target population.
5. Explain existent population and hypothetical population.
A population of concrete objects such as children, books, trees, hospitals, etc. is called existent
population. A population of all imaginable ways in which an event can occur is called hypothetical
population. For example, all possible tosses of a coin, etc.
6. Define sample.
Sample is a small part of the population which represents all the characteristics of a population.
OR Any subset of the population is known as population. For example, sample of few hospitals
from Lahore city to assess their emergency conditions.
7. Differentiate between parameter and statistic.
A numerical quantity summarizes the data of an entire population is called parameter. OR
Any quantity calculated from the population is called parameter.
A sample statistic is a numerical value summarizes the data of a sample. OR
Any numerical quantity calculated from the sample is called statistic.
8. Define sampling units.
The objects or individuals constituting the population are called sampling units. OR
Sampling units are those units of the population from which a sample is taken.
9. What is sampling frame?
A sampling frame is a map or complete list of all the sampling units in the population.
10. Define sample survey.
The collection of the information from a sample is called sample survey. OR A survey based on
the sample is called sample survey.
11. Define census or complete enumeration.
The collection of information from all the sampling units of the population is called census. OR
A survey based on the whole population is called census.
12. How the parameters denoted?
Parameters are denoted by the Greek letters like α, µ, etc

8
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

13. Define sampling.


Sampling is the procedure of selecting a sample from a population.
14. Explain the purpose of sampling.
1. To obtain maximum information about the characteristic of population with minimum cost,
time and effort.
2. To find the reliability of the estimates derived from the sample.
15. Write the advantages of sampling over census.
1. Sampling saves money.
2. Sampling saves time and effort.
3. Sampling provides more detailed information.
4. Sampling may be the only means available for obtaining the needed information when the
population appears to be infinite or is inaccessible.
5. Sampling provides information that is almost as accurate as obtained from a complete census.
16. Explain limitation of the sampling.
 If information is required from all the sampling units of population then sample will not meet
the needs.
 The sample is not necessarily true representative of the population.
17. Define the sample design.
A definite plan or procedure for selecting a sample from a given population is called sample
design.
18. How many types of sampling design are available?
There are two main types of sampling designs.
(i) Probability Sampling (ii) Non-probability Sampling
19. What is probability sampling?
When each unit of the population has a known non-zero probability of being selected for the
sample, the sampling is said to be probability sampling.
20. Define non-probability sampling.
A non-probability or non-random sampling is a process is which the personnel judgment
determines which units of the population are selected for a sample. In non-probability sampling,
the sample is not based on chance.
21. Define sampling with replacement.
Sampling is said to be with replacement when from a finite population a sampling unit is drawn,
observed and then returned to the population before another unit is drawn. OR
If the selected unit is replaced to the population before selecting the next unit, the sampling is said
to be with replacement.
22. Define sampling without replacement.
Sampling is said to be without replacement when from a finite population a sampling unit is
drawn, observed and not returned to the population before another unit is drawn. OR
If the selected unit is not replaced to the population before selecting the next unit, the sampling is
said to be with replacement.
23. Define sampling error and write its formula.
Sampling error is the difference between the statistic and the corresponding population parameter.
Sampling Error = Statistic – Parameter
24. How sampling error can be reduced?
Sampling error can be decreased by increasing the sample size.
25. How non-sampling error occur?
The errors which are caused due to human factor, such as, bias of investigator, faulty sampling
frame, errors of measurement, etc. are called non-sampling errors.

9
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

26. What is meant by bias and write its formula?


Bias is the difference between expected value of a statistic and value of the population parameter.
Bias = E(Statistic) – Parameter
27. How many types of probability sampling designs are available?
There are three main types of sampling designs.
(i) Simple Random Sampling (ii) Stratified Random Sampling (iii) Systematic Random Sampling
28. Define simple random sampling.
A sample is called simple random sample, if it is selected in such a way that each possible sample
of the given size has the same probability of selection.
29. Enlist the various methods of selecting the simple random samples.
There are two methods of selecting the simple random samples.
Lottery Method & Random Number Table
30. Describe stratified random sampling.
When the population is heterogeneous, it is divided into homogenous subgroups called strata. Then
a sample is selected separately from each strata at random and the combined into a single sample.
This method is called stratified random sampling.
31. Explain systematic sampling.
A sample of size n is defined to be a systematic random sample if it is obtained by choosing one
unit at random from the first k units and thereafter selecting every kth unit in the sample from a
population, where k is called the sampling interval. i.e. ⁄
32. What is quota sampling?
In quota sampling, sample is collected purposively from the segments of the population. For
example, quota of men and women in jobs, quota of urban and rural, etc.
33. What is sampling distribution?
The sampling distribution is the probability distribution of the value of a statistic computed from
all possible samples of the same size, which may be selected with or without replacement.
34. What is sampling distribution of ̅ ?
The sampling distribution of the sample mean is the probability distribution of the values of
sample mean computed from all possible samples of the same size, which may be selected with or
without replacement.
35. Define standard error.
The standard deviation of the sampling distribution of a statistic is called the standard error.
36. Describe properties of sampling distribution of mean.
(i) The mean of the sampling distribution is equal to the population mean. ̅
(ii) The standard deviation of the sampling distribution of mean is
̅ sampling with replacement

̅ √ sampling without replacement


(iii) If the population sampled is normal, then the sampling distribution of mean will also be
normal regardless of the sample size. If the population sampled is non-normal, then for
sufficiently large sample size, the sampling distribution will be approximately normal.
37. Describe properties of sampling distribution of proportion.
(i) The mean of the sampling distribution of proportions is equal to the population proportion.
̂

10
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

(ii) The standard deviation of the sampling distribution of proportion is

( )
̂ √ sampling with replacement
( )
̂ √ sampling without replacement
(iii) The sampling distribution of proportion follows the binomial distribution. However, for
sufficiently large sample size, the sampling distribution will be approximately normal.
38. Describe properties of sampling distribution of difference between two mean.
(i) The mean of the sampling distribution of ( ̅ ̅ ) is equal to the difference between the
population means. ̅ ̅
(ii) The standard deviation of the sampling distribution of ( ̅ ̅ ) is equal to

̅ ̅ √ sampling with replacement

̅ ̅ √ * + * + sampling without replacement


39. Describe properties of sampling distribution of difference of two of population proportions.
(i) The mean of the sampling distribution of is equal to the difference between the
population proportions.
(ii) The standard deviation of the sampling distribution of is

( ) ( )
√ sampling with replacement

( ) ( )
√ sampling without replacement

40. Given ̅ ̅

̅ ̅ [ ] [ ] * + * +

41. A population consists of elements 2, 4, 6, 8, 10. Write all possible samples of size 2 W.O.R.
( ) ( )
(2,4), (2,6), (2,8), (2,10), (4,6), (4,8), (4,10), (6,8), (6,10), (8,10).
42. ̅ if sampling is done with or without replacement.

̅ Sampling W.R

( )
̅ Sampling W.O.R
( )

43. A population consists of 4 elements. How many samples are possible with replacement and
without replacement, if n = 2.

( ) ( )

11
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Multiple Choice Questions


Tick the correct answer from the given options.
1. A sample is part or subset of the OR The whole material from which sample is drawn is called:
(a) Sampling Unit (b) Sample Space (c) Population (d) None
2. A complete list of sampling unit is called:
(a) Sample design (b) Sampling frame (c) Population (d) Sample
3. A plan for obtaining a sample from a population is:
(a) Sample design (b) Sampling frame (c) Population design (d) None
4. One of the great advantage of the sampling is that it:
(a) Waste time (b) Saves time (c) Use time (d) None
5. Any numerical value computed from the population is called:
(a) Statistic (b) Sampling (c) Parameter (d) Sample
6. Any numerical value computed from sample is called:
(a) Statistic (b) Sampling (c) Parameter (d) Sample
7. A population about which some information is required is called:
(a) Infinite population (b) Sampled population (c) Target population (d) None
8. Population parameters are denoted by
(a) Latin letters (b) Greek letters (c) Roman Letters (d) English letters
9. The term sample space is used for:
(a) All possible outcomes (b) Sample (c) Probability (d) Sample design
10. When a survey is carried out by a sampling design, OR The collection of information from a part
of population is called:
(a) Sample survey (b) Population survey (c) Census (d) Sampling
11. Probability sampling is also called:
(a) Random Sampling (b) Non-Random Sampling (c) Biased Sampling (d) Quota Sampling
12. Which one of the following is not a probability sampling:
(a) Systematic sampling (b) Simple random sampling (c) Stratified sampling (d) Quota sampling
13. Quota sampling belongs to:
(a) Systematic sampling (b) Non-Random sampling (c) Random sampling (d) None
14. Simple random sampling belongs to:
(a) Systematic sampling (b) Non-random sampling (c) Probability sampling (d) Quota sampling
15. The process of dividing the heterogeneous population into homogeneous sub-groups is called:
(a) Sampling (b) Sampling frame (c) Ranking (d) Stratification
16. Which of the following type of population is sub-divided in stratified random sampling:
(a) Homogeneous (b) Heterogeneous (c) Hexogeneous (d) None
17. A border patrol check point that stops every tenth car is using _______ sampling:
(a) Simple random (b) Systematic (c) Stratified (d) Census
18. In random sampling, the probability of selecting an item from population is
(a) Unknown (b) Zero (c) Known (d) Undecided
19. For making voter lists in Pakistan, we need:
(a) Systematic sampling (b) Stratified sampling (c) Random sampling (d) Census
20. The selection of a fast bowler for a particular match will follow the technique of:
(a) Systematic sampling (b) Simple random sampling (c) Purposive sampling (d) Quota sampling
21. In sampling with replacement, the number of possible samples are:
(a) Nn (b) NCn (c) NPn (d) None
22. In sampling without replacement, the number of possible samples are:
(a) Nn (b) NCn (c) N (d) None

12
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

23. In sampling without replacement:


(a) n < N (b) n > N (c) n = ∞ (d) None
24. In sampling with replacement:
(a) n < N (b) n > N (c) n = N (d) All
25. In sampling without replacement, an element can be chosen:
(a) Once (b) More than once (c) Twice (d) None
26. In sampling with replacement, an element can be chosen:
(a) Once (b) More than once (c) Twice (d) None
27. All possible samples drawn by with replacement as compared to without replacement will be
(a) More (b) Less (c) Equal (d) Smaller
28. Sum of frequency in sampling distribution is equal to:
(a) All possible samples (b) Sample size (c) Population size (d) Sample design
29. A finite population becomes infinite in selection of samples:
(a) Without replacement (b) With replacement (c) All at a time (d) Never
30. Probability distribution of a sample statistic is:
(a) Sampling error (b) Sampling distribution (c) Sampling (d) Standard error
31. The standard deviation of sampling distribution of any statistic is called:
(a) Sampling Error (b) Non-Sampling Error (c) Bias (d) Standard Error
32. Standard error of the mean is the standard deviation of:
(a) Population (b) Sampling distribution (c) Sample (d) Data
33. The standard error increases / The sampling error increases, when the sample size is:
(a) Increased (b) Decreased (c) Fixed (d) None
34. The standard error decreases / The sampling error decreases, when the sample size is:
(a) Increased (b) Decreased (c) Fixed (d) None
35. The difference of value of the sample statistic and true value of parameter is called:
(a) Non-sampling error (b) Sampling error (c) Random error (d) Error
36. The sampling errors are positive if the parameter is
(a) Under estimated (b) Estimated (c) Over estimated (d) Unbiased
37. The errors which arise due to processing of data and faulty sampling frame is called:
(a) Sampling Error (b) Non-Sampling Error (c) Bias (d) Standard Error
38. The non-sampling error can be reduced by ----------- the sample size:
(a) Increasing (b) Decreasing (c) Fixed (d) None
39. ( ̂) then ̂ is:
(a) Sampling Error (b) Biased (c) Unbiased (d) Standard Error
40. Systematic component of error is:
(a) Random error (b) Bias (c) Absolute error (d) Precision
41. ( ̂) is equal to:
(a) Sampling Error (b) Non-Sampling Error (c) Bias (d) Standard Error
42. Bias increases with the increase in sample size, so it is:
(a) Cumulative (b) De-cumulative (c) Estimated (d) Relative
43. A sample which is free from bias is called ______ sample:
(a) Unbiased (b) Biased (c) Purposive (d) Quota
44. If T is a statistic and θ be the corresponding parameter, then the bias is positive, if:
(a) E (T) = θ (b) E (T) > θ (c) E (T) < θ (d) E (T) ≠ θ
45. If T is a statistic and θ be the corresponding parameter, then the bias is negative, if:
(a) E (T) = θ (b) E (T) > θ (c) E (T) < θ (d) E (T) ≠ θ

13
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

46. If T is a statistic and θ be the corresponding parameter, then the bias is zero, if:
(a) E (T) = θ (b) E (T) > θ (c) E (T) < θ (d) E (T) ≠ θ
47. If N = 4 and n = 3 in simple random sampling with replacement, then all possible samples are
(a) 4 (b) 16 (c) 24 (d) 64
48. The mean of the sampling distribution of mean ( ̅ ) is equal to:
(a) µ (b) σ (c) n (d) ̅
49. If ̅ :
(a) 5 (b) 2 (c) 0 (d) 2.5
50. If ̅ then sampling error is equal to
(a) 5 (b) -2 (c) 0 (d) 2.5
51. If ̅ :
(a) 2 (b) 3 (c) 2.5 (d) 5
52. If ̅ :
(a) 12 (b) 10 (c) 100 (d) 144
53. Finite population correction factor is:

(a) (b) (c) √ (d) None


54. The standard error of sample mean for σ2 = 16 and n = 4 is:
(a) 1 (b) 2 (c) 4 (d) 8
55. If samples of size n are drawn with replacement from a population of size N with mean µ and
standard deviation σ, the standard error of the sample mean ( ̅ ) is

(a) (b) (c) (d) √


√ √
56. If samples of size n are drawn without replacement from a population of size N with mean µ and
standard deviation σ, the standard error of the sample mean( ̅ ) is

(a) (b) (c) (d) √


√ √
57. When sampling is done with or without replacement, then ̅ ̅ is equal to
(a) (b) (c) (d)

Important Formulas
Sampling with replacement Sampling without replacement

̅ ̅
√ ̅ ̅ √

̅ ̅ ̅ ̅

̅ ̅ √ ̅ ̅ √ [ ] [ ]

̂ ̂

( ) ( )
̂ √ ̂ √

( ) ( ) ( ) ( )
√ √

14
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 12 Estimation
Write Short answers of the following questions.
1. What is statistical inference?
The process of drawing inferences about a population on the basis of sample information is called
statistical inference.
2. Statistical inference is divided in how many types?
Statistical inference is divided into two major types.
(i) Estimation (ii) Testing of hypothesis
3. Define estimation.
Estimation is a procedure of obtaining the unknown values of population parameters using the
sample information.
4. What are the different types of estimation?
There are two types of estimation. (i) Point Estimation (ii) Interval Estimation
5. Define point estimation.
The process of finding a single value from the sample which will represent the unknown value of
the population parameter is called point estimation.
6. Define interval estimation.
Interval estimation is a procedure in which we estimate a range of values within which the
population parameter is expected to lie with a certain degree of confidence.
7. Define estimator and estimate.
A rule or method which is used to estimate a population parameter is called an estimator. OR
A statistic used to estimate a population parameter is called an estimator.
A numerical value calculated from the sample used to represent population parameter is called
estimate. OR A specific numerical value of the estimator is called estimate.
8. Differentiate between point estimate and interval estimate.
A single numerical value calculated from the sample used to represent population parameter is
called point estimate.
Interval estimate is an interval computed from the sample with a certain degree of confidence that
the computed interval contains the value of unknown population parameter.
9. Define unbiasedness.
The property that the expected value of a statistic is equal to its parameter is called unbiasedness.
10. Define unbiased estimator.
An estimator is said to be an unbiased estimator if its expected value equals the corresponding
population parameter. i.e. E(T) = θ
11. Define biased estimator.
An estimator is said to be a biased estimator if its expected value does not equals the
corresponding population parameter. i.e. E(T) ≠ θ
12. Define bias.
Bias is the difference between expected value of a statistic and value of the population parameter.
If an estimator T of a population parameter θ is biased, the amount of bias is
Bias = E(T) - θ
13. Define confidence interval.
A range of values calculated from the sample data that will include the population parameter with
a certain degree of confidence is known as confidence interval.
14. Define level of confidence.
The probability that the unknown population parameter lies in the confidence interval is known as
level of confidence or confidence coefficient and denoted by (1 - α).

15
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

15. What is the point estimator of the population mean µ?


The point estimator of the population mean µ is ̅ .
16. What is the relationship of the length of a two sided confidence interval affected with n, α, σ
and (1 - α)?
n and α are inversely related with length of a two sided confidence interval whereas σ and (1 - α)
are directly related with length of a two sided confidence interval.
17. How the length of a two sided confidence interval affected by n?
The length of a two sided confidence interval has an inverse relation with sample size n. The
length of confidence interval will decrease by increasing n and increase by decreasing n.
18. How the length of a two sided confidence interval affected by α?
The length of a two sided confidence interval has an inverse relation with level of significance α.
The length of confidence interval will decrease by increasing α and increase by decreasing α.
19. How the length of a two sided confidence interval affected by increasing σ?
The length of a two sided confidence interval has a direct relation with standard deviation σ. The
length of confidence interval will increase by increasing σ and decrease by decreasing σ.
20. How the length of a two sided confidence interval affected by (1 - α)?
The length of a two sided confidence interval has a direct relation with level of confidence (1-α).
The length will increase by increasing (1-α) and decrease by decreasing (1-α).
21. How the length of a two sided confidence interval affected by ̅ ?
The length of a two sided confidence interval has no effect with change in ̅ .
22. When finite population correction factor can be ignored for estimating µ?
When n < 0.005N OR
23. Identify the estimator and estimate, if a sample of 11 cricketers gives an average score of 23.
Estimator is the sample mean ̅ while estimate is 23.
24. If n = 500 and x = 100, then find the value of ̂.
̂
25. If ̅ Find 95% confidence interval for µ.
̅
√ √
26. Explain why S2 and s2 are called biased and unbiased estimator of σ2.
As E(S2) ≠ σ2, so S2 is biased. Similarly E(s2) = σ2, so s2 is unbiased.
27. Write the formula of biased and unbiased variances.
∑( ̅) ∑( ̅)

28. Write the unbiased estimators of population mean (µ), population proportion (π) and
population variance σ2.
The unbiased estimators of µ, π and σ2 are ̅ ̂

16
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Multiple Choice Questions


Tick the correct answer from the given options.
1. The statistical inference has types:
(a) One (b) Two (c) Three (d) Four
2. How many types of estimation are:
(a) One (b) Two (c) Three (d) Four
3. A specific value calculated by using the sample data is called:
(a) Estimator (b) Estimate (c) Estimation (d) None
4. A rule or formula used to estimate an unknown parameter is called:
(a) Estimator (b) Estimate (c) Estimation (d) Bias
5. The point estimator of µ is:
(a) ̅ (b) ̂ (c) s (d) S
6. A point estimator is a sample:
(a) Value (b) Estimate (c) Parameter (d) Statistic
7. Parameters are estimated from:
(a) Sample (b) Population (c) Census data (d) None
8. If ̅ , then the point estimator is
(a) Median (b) 25 (c) Mean (d) None
9. In point estimation, we always get:
(a) One value (b) range of two values (c) multiple values (d) None
10. A single number used to estimate the unknown population parameter:
(a) Biased estimate (b) Unbiased estimate (c) Interval estimate (d) Point estimate
11. The process of obtaining a single number used to estimate the unknown population parameter:
(a) Biased estimation (b) Unbiased estimation (c) Interval estimation (d) Point estimation
12. The process of calculating a range of values used to estimate the unknown population parameter:
(a) Interval estimation (b) Unbiased estimation (c) Biased estimation (d) Point estimation
13. In interval estimation, we always get:
(a) One value (b) range of two values (c) multiple values (d) None
14. An interval estimate is associated with:
(a) Probability (b) Non-probability (c) Error (d) Bias
15. An estimator ̂ is said to be unbiased estimator of θ if
(a) ( ̂) (b) ( ̂) (c) ( ̂) (d) ( ̂)
16. ( ̂) :
(a) Sampling error (b) Non-sampling error (c) Standard error (d) Bias
∑( ̅)
17. The sample variance is
(a) Biased estimator (b) Unbiased estimator (c) Interval estimator (d) None
∑( ̅)
18. The sample variance is
(a) Biased estimator (b) Unbiased estimator (c) Interval estimator (d) None
19. Which of the following estimators are unbiased?
(a) ̅ (b) ( ) (c) ̂ (d) All
20. Which of the following estimator is biased?
(a) (b) ( ) (c) ̂ (d) ̅
21. The level of significance is denoted by:
(a) α (b) β (c) 1 - α (d) 1 - β

17
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

22. The value of α lies between:


(a) -1 to +1 (b) 0 to 1 (c) -1 to 0 (d) None
23. The probability (1 – α) is called:
(a) Confidence Interval (b) Confidence level (c) Confidence value (d) None
24. The level of confidence or confidence coefficient is denoted by:
(a) (1 – α) (b) α (c) (1 – β) (d) β
25. If the level of significance is 8%, then level of confidence is:
(a) 88% (b) 108% (c) 92% (d) 8%
26. A 96% confidence interval is narrow than:
(a) 90% (b) 95% (c) 99% (d) None
27. The confidence interval for µ, when σ is unknown and sample size is small is given by:
(a) ̅ ⁄ (b) ̅ ⁄ (c) ̅ ⁄ (d) None
√ √ √
28. The confidence interval for µ, when σ is known is given by:
(a) ̅ ⁄ (b) ̅ ⁄ (c) ̅ ⁄ (d) None
√ √ √
29. The confidence interval for µ, when σ is unknown but sample size is large is given by:
(a) ̅ ⁄ (b) ̅ ⁄ (c) ̅ ⁄ (d) None
√ √ √

30. Finite population correction may be ignored if:


(a) n < 0.005N (b) n > 0.005N (c) n < 0.05N (d) n > 0.05N
31. By decreasing ̅ , the length of the confidence for µ will:
(a) Increases (b) Decreases (c) No effect (d) None
32. By decreasing n, the length of the confidence for µ:
(a) Increases (b) Decreases (c) No effect (d) None
33. By decreasing level of significance, the length of the confidence for µ:
(a) Increases (b) Decreases (c) No effect (d) None
34. By decreasing level of confidence, the length of the confidence for µ:
(a) Increases (b) Decreases (c) No effect (d) None
35. A sample of size n is considered as large if:
(a) n > 30 (b) n > 50 (c) n < 30 (d) n = 30
36. A sample of size n is considered as small if:
(a) n ≥ 30 (b) n > 50 (c) n ≤ 30 (d) n = 30
37. Which of the following is a necessary condition for using a t-distribution?
(a) σ is unknown & n < 30 (b) σ is unknown & n > 30 (c) σ is unknown (d) σ is known
38. For known population standard deviation, the confidence interval for population mean is based on:
(a) Normal distribution (b) Chi-square distribution (c)Binomial distribution (d) t-distribution
39. If n = 500 and x = 40, then ̂ is
(a) 0.05 (b) 0.06 (c) 0.07 (d) 0.08
40. Suppose that the sample mean is 100 and the upper limit of a 90% confidence interval for µ is 112.
What is the lower limit of this confidence interval?
(a) 92 (b) 88 (c) 124 (d) None

18
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Important Formulas
Sample Population
Size n N
∑ ∑
Mean ̅
Biased Variance Unbiased Variance
∑( )
∑( ̅) ∑( ̅)
Variance
(∑ ) ∑ ∑
∑ ∑ ( )
( ) *∑ +

Proportion ̂

( ) ( ) ∑( ̅ ) ∑( ̅ )
Pooled Variance

Paired Sample ∑( ̅) (∑ )
Variance *∑ +

σ Known ̅ ⁄
Confidence √
Interval for ̅
σ Unknown (n > 30) ⁄
Population √
Mean
σ Unknown (n ≤ 30) ̅ ⁄

Confidence
σ1 and σ2 are Known (̅ ̅ ) ⁄ √
Interval for
Difference σ1 and σ2 are unknown
Between Two (n1, n2 > 30) (̅ ̅ ) ⁄ √
Population
Means σ1 and σ2 are unknown
(̅ ̅ ) ⁄ √
(n1, n2 ≤ 30)
Confidence
Interval for
Paired Observation ̅ ⁄
(n1, n2 ≤ 30) √
Paired Mean

Confidence Single Sample ⁄


Interval for √
Population
Proportion Two Sample ( ) ⁄ √

Table Values of Z
α 1% 2% 5% 10%
1-α 99% 98% 95% 90%
2.33 2.16 1.645 1.28
⁄ 2.58 2.33 1.96 1.645

19
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 13 Testing of Hypothesis


Write Short answers of the following questions.
1. What do you meant by hypothesis testing?
Hypothesis testing is a procedure which enables us to decide on the basis of sample information
whether to accept or reject an assumption about the value of the population parameter.
2. Define statistical hypothesis.
A statistical hypothesis is an assumption or claim about the value of one or more parameters of a
population, which may or may not be true.
3. Define the null hypothesis.
A hypothesis, which is to be tested for the possible rejection under the assumption that it is true, is
called the null hypothesis. A null hypothesis always contains equality sign and denoted by H0.
4. Define the alternative hypothesis.
An alternative hypothesis is a hypothesis that we are willing to accept, when we reject the null
hypothesis. An alternative hypothesis always contains inequality sign and denoted by H1.
5. Define simple hypothesis.
A hypothesis which completely specifies the parameter of a population distribution is called
simple hypothesis. For example, H0: µ = 30 is a simple hypothesis.
6. Define composite hypothesis.
A hypothesis which does not completely specify the parameter of a population distribution is
called composite hypothesis. For example, H0: µ ≥ 30 or µ ≤ 30 are composite hypothesis.
7. Explain the difference between Type-I and Type-II error.
Rejecting the null hypothesis when it is actually true is called type-I error. The probability of type-
I error is denoted by α.
Accepting the null hypothesis when it is actually false is called type-II error. The probability of
type-II error is denoted by β.
8. Give two examples of Type-I and Type-II error.
An innocent person punished by police and a deserving player not selected in the team are
examples of Type-I error. A failing student passed by the teacher and court acquit a guilty person
are examples of Type-II error.
9. Define the level of significance.
Level of significance is the probability of rejecting the true null hypothesis. OR
The probability of making a Type I error is called level of significance and is denoted by α.
10. Define power of a test.
The probability of rejecting a false null hypothesis is called power of a test and is denoted by (1-β).
11. Explain critical region.
The area of the distribution in which we reject the null hypothesis is called the critical region or
rejection region. OR The area of the distribution which is not consistent with the values of the test
statistic is called critical region.
12. Explain critical values.
The values, which separates the rejection and acceptance region is called critical values.
13. Explain acceptance region.
The area of the distribution in which we accept the null hypothesis is called the acceptance region.
OR The area of the distribution which is consistent with the values of the test statistic is called
acceptance region.
14. Describe one tailed test.
A one tailed test means that rejection region falls in one side of the mean.
15. Describe a two tailed test.
A two tailed test means that rejection region falls in both sides of the mean.

20
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

16. Define the test of significance.


A test of significance is a procedure which enables us on the basis of sample observations that
whether to accept or reject a hypothesis.
17. Define the test statistic.
A test statistic is a formula based on sample observations that provides a basis for testing the null
hypothesis.
18. What is degree of freedom?
The number of independent groups or sub-categories into which sample or population may be
divided is called degree of freedom. OR
The number of values that can be selected independently is called degree of freedom.
19. What are paired samples?
Samples drawn from two populations in such a way that the elements in one sample are matched
or paired with the elements in the other sample are called paired samples.
20. Define paired difference test.
A hypothesis test of the difference between two population means based on the means of two
dependent or paired samples is called a paired difference test.
21. Given ̅ Then 22. Given
find s. ̅
̅ ̅ ̅
̅
⁄√ ⁄√ ⁄√ ⁄√
23. Given ̅ Then 24. Give ̅
find n. Then find the value of t-statistic.
̅ ̅

⁄√ ⁄√ ⁄√ ⁄√
25. When t-test is used for testing population mean?
t-test is used for testing population mean when population standard deviation (σ) in unknown and
sample size is small (n ≤ 30).
26. What are the assumptions of student’s t-statistic?
1. The sample of n observations is selected randomly.
2. Observations in the sample must be independent of each other.
3. Population distribution must be approximately normal for small n.
4. Population need not be approximately normal for large n.
5. In case of two small samples, both the samples are selected randomly, both the populations are
to be normal and both populations have equal variances.
27. Calculate the pooled standard deviation, if
(i). ∑( ̅ ) ∑( ̅ )
∑( ̅ ) ∑( ̅ )
√ √
(ii).
( ) ( ) ( )( ) ( )( )
√ √
28. Formula the null and alternative hypotheses from the following statement:
(i) Not more than 80% people like a particular TV programme.
(ii) At least 30% people pay zakat.
(iii) Player A is better on average than Player B.

21
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Multiple Choice Questions


Tick the correct answer from the given options.
1. The formula used to estimate a parameter is called:
(a) Estimate (b) Estimator (c) Bias (d) Error
2. The hypothesis, which is to be tested for possible rejection is:
(a) Null (b) Alternative (c) Research (d) Simple
3. A hypothesis may be classified as:
(a) Null (b) Simple (c) Composite (d) All
4. The null hypothesis always contains the sign of:
(a) Equality (b) Inequality (c) Ratio (d) Proportion
5. The alternative hypothesis always contains the sign of:
(a) Equality (b) Inequality (c) Ratio (d) Proportion
6. The alternative hypothesis is also called:
(a) Null (b) Composite (c) Research (d) Simple
7. A null hypothesis is denoted by:
(a) H0 (b) H1 (c) Ha (d) Hb
8. An alternative hypothesis is denoted by:
(a) H0 (b) H1 (c) Ha (d) Hb
9. If the null hypothesis is µ ≥ 30, then alternative hypothesis will be
(a) µ > 30 (b) µ < 30 (c) µ = 30 (d) µ ≠ 30
10. If the null hypothesis is µ ≤ 30, then alternative hypothesis will be
(a) µ > 30 (b) µ < 30 (c) µ = 30 (d) µ ≠ 30
11. If the null hypothesis is µ = 30, then alternative hypothesis will be
(a) µ > 30 (b) µ < 30 (c) µ = 30 (d) µ ≠ 30
12. A hypothesis which completely specifies the population parameter is called:
(a) Research hypothesis (b) Composite hypothesis (c) Simple hypothesis (d) Null hypothesis
13. A hypothesis which does not completely specifies the population parameter is called:
(a) Research hypothesis (b) Composite hypothesis (c) Null hypothesis (d) Simple hypothesis
14. Which of the following is a composite hypothesis:
(a) µ ≥ 30 (b) µ = 20 (c) µ = 30 (d) µ = 40
15. Which of the following is a simple hypothesis or not a composite hypothesis:
(a) µ ≥ 30 (b) µ < 30 (c) µ = 30 (d) µ ≠ 30
16. The probability of rejecting the null hypothesis, when it is true is:
(a) Power of test (1-β) (b) Level of significance (α) (c) Type-II error (d) Type-I error
17. The probability of rejecting the null hypothesis, when it is false is:
(a) Power of test (1-β) (b) Level of significance (α) (c) Type-II error (d) Type-I error
18. The probability of accepting the null hypothesis, when it is true is:
(a) Power of test (1-β) (b) Level of confidence (c) Type-II error (d) Type-I error
19. The power of the test is denoted by:
(a) α (b) β (c) 1 - α (d) 1 - β
20. The acceptance region is denoted by:
(a) (1 – α) (b) α (c) (1 – β) (d) β
21. The level of significance is denoted by:
(a) α (b) β (c) 1 - α (d) 1 - β
22. (Reject H0 | H0 is true) is called to OR Rejecting the true null hypothesis is:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
23. (Reject H0 | H1 is true) is called to OR Rejecting the false null hypothesis is:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error

22
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

24. (Accept H0 | H0 is false) is called to OR Accepting the false null hypothesis is:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
25. (Accept H0 | H0 is true) is called to OR Accepting the true null hypothesis is:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
26. P(Reject H0 | H0 is true) is equal to OR Probability of Type-I error is denoted by:
(a) α (b) β (c) 1 - α (d) 1 – β
27. P(Accept H0 | H0 is false) is equal to OR Probability of Type-II error is denoted by:
(a) α (b) β (c) 1 - α (d) 1 – β
28. A good player is not selected in the team is an example of:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
29. A judge acquits an innocent person, it is an example of:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
30. A good education scheme is rejected by the education department is an example of:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
31. A failing student is passed by an examiner is an example of:
(a) Error (b) Correct decision (c) Type-II error (d) Type-I error
32. A rule or formula that provides a basis for testing a null hypothesis is called:
(a) Parameter (b) Size of the test (c) Confidence level (d) Test statistic
33. t-distribution is used, when
(a) Population is normal (b) σ is Unknown (c) Sample is small (d) All
34. In t-distribution, σ is:
(a) Known (b) Unknown (c) Given (d) All
35. In t-distribution, the variance used is:
(a) Biased (b) Unbiased (c) Population (d) All
36. The testing of population proportion is carried out by:
(a) t-test (b) z-test (c) Both (d) None
37. The test statistic for the testing of paired observations is based on:
(a) t-test (b) z-test (c) Both (d) None
38. If the population standard deviation is known, then the test statistic to be used is:
(a) t-test (b) z-test (c) Both (d) None
39. If the population S.D is unknown and sample size is large (n > 30), then test statistic to be used is:
(a) t-test (b) z-test (c) Both (d) None
40. If the population S.D is unknown and sample size is small (n ≤ 30), then test statistic to be used is:
(a) t-test (b) z-test (c) Both (d) None
̅
41. The test statistic has the degree of freedom equal to:

(a) n (b) n - 1 (c) n - 2 (d) n + 1
42. The test statistic for the paired observation has the degree of freedom equal to:
(a) (b) ( )( ) (c) n - 1 (d) n + 1
43. A test statistic is the ratio between sampling error and:
(a) Error (b) Sampling error (c) Type-II error (d) Standard error
44. The z test statistic has the degree of freedom equal to:
(a) n (b) n - 1 (c) n - 2 (d) None
45. If , then the test statistic t for the independent samples test has the d.f. equal to:
(a) 19 (b) 21 (c) 22 (d) 22
46. The critical region is a region of:
(a) Rejection (b) Acceptance (c) Non-rejection (d) None

23
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

47. The probability that the confidence interval does not contain the parameter is denoted by:
(a) α (b) β (c) 1 - α (d) 1 - β
48. If the magnitude of calculated value of „t‟ is less than table value of „t‟ in two tailed test, we should
(a) Reject H0 (b) Do not Reject H1 (c) Do not Reject H0 (d) Accept H1
49. If critical region is located on both sides, it is called:
(a) One tailed test (b) One sided test (c) two tailed test (d) None
50. If critical region is located on one side, it is called:
(a) One tailed test (b) Double sided test (c) two tailed test (d) None
51. If the alternative hypothesis is H1: µ < 20 or H1: µ > 20, it is:
(a) One tailed test (b) Double sided test (c) two tailed test (d) None
52. If the alternative hypothesis is H1: µ ≠ 20, it is:
(a) One tailed test (b) One sided test (c) two tailed test (d) None
53. If the null and alternative hypothesis are H0: µ = 20 and H1 = µ < 20, it is appropriate to use:
(a) Right tailed test (b) Left tailed test (c) Two tailed test (d) None
54. If the null and alternative hypothesis are H0: µ = 20 and H1 = µ > 20, it is appropriate to use:
(a) Right tailed test (b) Left tailed test (c) Two tailed test (d) None
55. A sample of size n is called small if:
(a) n > 30 (b) n = 30 (c) n ≥ 30 (d) n ≤ 30
56. The choice of one tailed test and two tailed test depends upon _________ hypothesis:
(a) Null (b) Composite (c) Alternative (d) Simple
57. With a lower significance level, the probability of rejecting a null hypothesis that is actually true:
(a) Decreases (b) Remains the same (c) Increases (d) All of these
58. Which of the following cannot be H0:
(a) µ ≥ 30 (b) µ ≤ 30 (c) µ = 30 (d) µ ≠ 30

Testing of Hypothesis Important Formulas


σ Known σ Unknown (n > 30) σ Unknown (n ≤ 30)
Population
Mean ̅ ̅ ̅
⁄√ ⁄√ ⁄√
σ1 and σ2 are unknown σ1 and σ2 are unknown
σ1 and σ2 are Known
Difference (n1, n2 > 30) (n1, n2 ≤ 30)
Between Two
(̅ ̅ ) ( ) (̅ ̅ ) ( )
Population (̅ ̅ ) ( )
Means
√ √ √

Testing of Paired Observation


(n1, n2 ≤ 30) Pooled Proportion
Hypothesis
about Paired ̅ ̂
Population
⁄√
Mean
̂

Single Sample Two Sample Two Sample

Population
( ) ( ) ( ) ( )
Proportion
√ ( )
√ √ ̂( ̂) ( )

24
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 14 Regression and Correlation


Write Short answers of the following questions.
1. Define regression.
The dependence of one variable on one or more variables is called regression. OR
The process in which we estimate one variable on the basis of another variable is called regression.
2. Define regression analysis.
In regression analysis, we obtain an equation which can be used to estimate the values of the
dependent variable on the basis of independent variable whose values are known.
3. What is scatter diagram?
The graphical representation of the paired observations (xi, yi) is called scatter diagram.
4. Define simple linear regression.
In simple linear regression, the dependent variable y is expressed as a linear function of one
independent variable is called simple linear regression.
5. Explain the simple linear regression model and what are its parameters?
The simple linear regression model is , where X and Y represents the independent
and dependent variables. α and β are the parameters of simple linear regression model. α is the y-
intercept and β is the slope or regression coefficient.
6. Define slope or regression coefficient for the simple regression line.
Slope or regression coefficient is the rate of change in the dependent variable as per unit change in
the independent variable.
7. Define y-intercept or intercept.
Y-intercept or intercept is the value of y against the value of x = 0.
8. Define independent variable or regressor.
A variable that does not depend on other variable is called independent variable or regressor. OR
The variable that forms the basis of prediction is called as independent variable or regressor.
9. Define regressand or dependent variable.
A variable that depends on another variable is called dependent variable or regressand. OR
The variable which we want to estimate or predict on the basis of other variable is called
dependent variable or regressand.
10. Write properties of regression line.
1. The least square regression line always passes through the mean values i.e. ( ̅ ̅ ).
2. The sum of observed values and estimated values is equal. i.e. ∑ ∑̂
3. The sum of the residual error is always zero. i.e. ∑ ∑( ̂)
4. The mean of the observed and estimated values are equal. i.e. ̅ ̅̂
5. The sum of square deviation of observed values from the estimated values is minimum,
∑ ∑( ̂)
6. The fitted regression line ̂ obtained from sample data is the line of best fit since a
and b are unbiased estimates of the parameters α and β of the population regression model.
11. Write properties of regression coefficient.
1. Regression Coefficients (b & d) always have the same sign.
2. If one regression coefficient is greater than 1, then other will be less than 1.
3. Regression coefficient is independent of origin but dependent on scale.
4. Two regression coefficients are not symmetric with respect to x and y. bxy ≠ byx
12. Define principal of least square for fitting a regression line OR State the principal of least square.
The principal of least squares states that the sum of squared deviations of the observed values
from the estimated values should be least or minimum.

25
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

13. What is the role of independent and dependent variables in the regression?
The values of the independent variable are fixed in advance and it is used to estimate the
dependent variable, whereas dependent variable is used for the purpose of estimation.
14. Define two regression coefficients and write their formula.
The slope of the regression line of y on x is called the regression coefficient of y on x and denoted
by byx. The slope of the regression line of x on y is called the regression coefficient of x on y and
denoted by bxy.
∑( ̅ )( ̅) ∑ ∑ ∑ ∑ ̅̅
∑( ̅) ∑ (∑ ) ∑ ̅
∑( ̅ )( ̅) ∑ ∑ ∑ ∑ ̅̅
∑( ̅) ∑ (∑ ) ∑ ̅
15. Distinguish between positive and negative regression.
When the regression line slopes upwards to the right and its value will be positive. It indicates the
amount of increase in y for each unit increase in X, which is called positive regression.
When the regression line slopes downwards to the right and its value will be negative. It indicates
the amount of decrease in y for each unit increase in X, which is called negative regression.
16. Define residual.
The difference between observed and estimated value is called residual or error. i.e. ( ̂)
17. Define correlation.
The correlation is the degree of covariation between two variables. OR
The interdependence of two variables upon each other is called correlation.
18. Define correlation coefficient.
The numerical measure of degree or strength of linear relationship between two variables is called
the correlation coefficient.
Correlation coefficient measures the degree of strength and direction of linear relationship
between two variables
19. Distinguish between positive and negative correlation.
If both variables move in the same direction, then it is said to be positive or direct correlation.
If both variables move in opposite direction, then it is said to be negative or inverse correlation.
20. Define perfect negative correlation.
The correlation is said to perfect negative, if the relationship between the two variables is perfectly
linear with negative slope. i.e. r = -1
21. Describe perfect positive correlation.
The correlation is said to perfect positive, if the relationship between the two variables is perfectly
linear with positive slope. i.e. r = 1
22. Describe zero or no correlation.
When the correlation coefficient is zero (r = 0), we can say that there is no or zero correlation
between two variables or two variables are independent.
23. Write properties of correlation coefficient.
1. Correlation coefficient lies between –1 and +1. i.e.
2. Correlation coefficient is independent of change of origin and scale.
3. It is a pure number independent of units of measurement.
4. Correlation coefficient is the geometric mean of two regression coefficients. √
if both regression coefficients have positive sign then r is positive and if both have negative
signs then r is negative.
5. The correlation coefficient of x and y is symmetric. i.e.
6. The correlation coefficient is zero when the values of any variable are constant.

26
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

24. Give two formulas of correlation coefficient.


∑( ̅ )( ̅) ∑ ∑ ∑
√∑( ̅ ) ∑( ̅) √[ ∑ (∑ ) ][ ∑ (∑ ) ]
25. What is the range of the correlation coefficient?
Correlation coefficient lies between –1 and +1. i.e. -1 ≤ r ≤ +1
26. What is the difference between regression and correlation?
Regression is the dependence of one variable upon the other independent variables, whereas
correlation in the interdependence of two variables upon each other.
27. What is the relation between regression coefficients and correlation coefficient?
Correlation coefficient is the geometric mean of two regression coefficients. i.e. √
28. If one regression coefficient is zero then what will be the value of r?
The correlation coefficient will also be 0.
29. If x = 2, 4, 6 and y = 4, 4, 4, then what will be the value of simple correlation coefficient?
The correlation coefficient will also be 0 as one variable y is constant.
30. Given r = 0.95, explain or interpret it.
There is a high positive correlation between the variables.
31. Given that rxy = 0.8. Find ryx?
ryx = 0.8, because r is symmetrical with respect to x and y. i.e.
32. Given that bxy = 0.4 and r = 0.8. Find byx?

√ √
33. ∑( ̅) ( ̅) ∑( ̅) ∑( ̅) Find the value of
regression coefficients and correlation coefficient.
∑( ̅ )( ̅) ∑( ̅ )( ̅)
∑( ̅) ∑( ̅)
∑( ̅ )( ̅)
√∑( ̅ ) ∑( ̅) √
34. Given that bxy = -0.52 and byx = -1.02. Find the value of r?

√ √

35. Find the slope and y-intercept of the line, whose equation is 3x - 5y = 20.

So slope = 0.6 and y-intercept = -4


36. Find the slope and y-intercept of the line, whose equation is y = 5 – 2x.
So slope = -2 and y-intercept = 5
37. If a = 130 and b = 4, then estimate y for x = 12.
̂ ( )
38. Given,

39. Given, ∑( ̅) ( ̅)
∑( ̅ )( ̅)

( ) ( )

27
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

40. Given,

41. Given,

42.

43. Given, ( )

44. Given that, ̂ ̂ Find the correlation coefficient.


Here bxy = 0.5 and byx = 1.2 Since √ √
45. Given, ̅ ̅
̅ ̅ ( )
46. Given, ̅ ̅
̅ ̅ ( )
47. Given, Find sum of squares of residual.
∑ ( ) ( ) ( ) ( ) ( ) ( )
48. If the product of two regression coefficients is 0.72. What will be the value of r?

√ √
49. In a regression line of x on y, ∑ ∑̂
According to the property of regression line, we know that ∑ ∑̂ ∑̂

Multiple Choice Questions


Tick the correct answer from the given options.
1. The graph showing the paired points of (Xi, Yi) is called:
(a) Histogram (b) Historigram (c) Points curve (d) Scatter plot
2. The dependence of one variable upon the other variable is called:
(a) Regression (b) Correlation (c) Causation (d) None
3. The term regression was first used by:
(a) Newton (b) Pearson (c) Galton (d) Spearman
4. Independent variable is also called:
(a) Regressand (b) Regressor (c) Predictant (d) Explained
5. The dependent variable is also called:
(a) Regressor (b) Predictant (Regressand) (c) Predictor (d) Continuous
6. In the regression equation of x on y, x is called__________ variable:
(a) Independent (b) Dependent (c) Quantitative (d) Qualitative
7. In the regression equation of x on y, y is called__________ variable:
(a) Independent (b) Dependent (c) Quantitative (d) Qualitative
8. A variable provides the basis for estimation is called__________ variable:
(a) Independent (b) Dependent (c) Quantitative (d) Qualitative
9. The variable whose values are predicted is called__________ variable:
(a) Independent (b) Dependent (c) Quantitative (d) Qualitative

28
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

10. The values of the independent random variable are ________ in advance.
(a) Random (b) Known (c) Fixed (d) Variable
11. The values of the dependent variable are assumed to be.
(a) Random (b) Known (c) Fixed (d) Variable
12. If one regression coefficient (byx) is negative, then the other regression coefficient (bxy) will be:
(a) Positive (b) Negative (c) 0 (d) 1
13. Regression coefficient is independent of:
(a) Origin (b) Scale (c) Origin and Scale (d) None
14. Simple linear regression coefficient is denoted by:
(a) β (b) α (c) e (d) µ
15. In the regression equation model, , the ϵ represents,
(a) Intercept (b) Dependent variable (c) Random error (d) Slope
16. In the regression equation model, , the α represents,
(a) Intercept (b) Dependent variable (c) Random error (d) Slope
17. In the regression equation model, , the β represents,
(a) Intercept (b) Dependent variable (c) Random error (d) Slope
18. In the regression equation model, , the Y represents,
(a) Intercept (b) Dependent variable (c) Random error (d) Slope
19. In the regression equation model, , the X represents,
(a) Intercept (b) Independent variable (c) Random error (d) Slope
20. The slope of the regression line is also called,
(a) Intercept (b) Regression coefficient (c) Random error (d) None
21. When a regression line passes through the origin, then,
(a) Intercept = 0 (b) Slope = 0 (c) X = 0 (d) None
22. A simple linear regression model contains ________ variables.
(a) One (b) Two (c) Three (d) Four
23. A simple linear regression model contains ________ independent variable.
(a) One (b) Two (c) Three (d) Four
24. Range of the slope is
(a) -∞ to 0 (b) 0 to ∞ (c) -∞ to +∞ (d) -1 to +1
25. The signs of regression coefficients are associated with
(a) Variance (X) (b) Variance (Y) (c) COV(X,Y) (d) None
26. If , slope of the line is
(a) 10 (b) 2 (c) -2 (d) None
27. The regression line of y on x is y = -5 +2x. If x = 5, then the value of dependent variable is:
(a) 15 (b) 5 (c) 10 (d) 0
28. The difference between the actual and estimated value is called:
(a) Sampling Error (b) Residual (c) Points curve (d) Scatter plot
29. If , which one is always true
(a) ∑( ̂ ) (b) ∑( ̂) (c) ∑( ̂) (d) None
30. The sum of residual ∑( ̂ ) is or Σe is:
(a) Zero (b) One (c) Negative (d) Positive
31. In the regression line of y on x:
(a) ∑ ∑̂ (b) ∑ ∑̂ (c) None (d) Both a & b
32. ∑( ̂ ) is always
(a) Least (b) Maximum (c) Negative (d) None

29
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

33. ∑ ∑ ∑ is equal to OR Sum of square of residual is denoted by:


(a) e (b) Σe (c) Σe2 (d) None
34. The regression line always passes through the points:
(a)( ̅ ̅ ) (b) ( ) (c) ( ̅ ) (d) ( ̅ )
35. Simple linear correlation measures the strength or _________ between two variables.
(a) Analysis (b) Degree (c) Problem (d) Closeness
36. Correlation coefficient is independent of:
(a) Origin (b) Scale (c) Origin and Scale (d) None
37. Correlation coefficient is dependent on:
(a) Origin (b) Scale (c) Origin and Scale (d) None
38. The unit of correlation coefficient calculated from height (inches) and weight (kg) will be:
(a) Inches (b) As a pure number (c) Inches & Kg (d) Kg
39. The value of correlation coefficient lies between:
(a) 0 to 1 (b) -∞ to +∞ (c) –1 to +1 (d) 0 to ∞
40. Correlation coefficient (r) cannot be greater than:
(a) -1 (b) 1 (c) 0.5 (d) Zero
41. Correlation coefficient is the ___________ of the two regression coefficients:
(a) A.M (b) G.M (c) Median (d) None
42. Correlation coefficient (r) is equal to:
(a) (b) (c) (d) √
43. If both regression coefficients are negative, then the correlation coefficient will be:
(a) Positive (b) Negative (c) 0 (d) 1
44. If constant is added or subtracted from the values of the variable, the value of the r is:
(a) Negative (b) Remained unchanged (c) Zero (d) Positive
45. Correlation coefficient is zero when one of x or y is
(a) Changing (b) Variable (c) Fixed (d) Constant
46. If both variables move in the opposite direction, then r is
(a) Negative (b) Remained unchanged (c) Zero (d) Positive
47. If both variables move in the same direction, then r is
(a) Negative (b) Remained unchanged (c) Zero (d) Positive
48. In correlation, both the variables are
(a) Random (b) Non-random (c) Fixed (d) Constant
49. When two variables are uncorrelated, the value of r is:
(a) Negative (b) Remained unchanged (c) Zero (d) Positive
50. Two regression lines are perpendicular to each other, then the value of r is:
(a) Negative (b) Remained unchanged (c) Zero (d) Positive
51. The two regression coefficients and correlation coefficient always have the ________ signs:
(a) Same (b) Opposite (c) Different (d) Positive
52. If the Cov(x,y) = 0, then the correlation coefficient is:
(a) Positive (b) Negative (c) None (d) Zero
53. Correlation is said to be positive perfect, if r =
(a) 1 (b) -1 (c) 0 (d) 0.95
2
54. The value of r is 0.49, what is the value of correlation coefficient;
(a) 0.49 (b) 0.98 (c) 0.70 (d) 0.07
55. If byx = -0.8 and bxy = -0.2, then r is
(a) 0.16 (b) -0.16 (c) 0.40 (d) -0.40

30
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

56. If byx = -0.5, then r is


(a) 0.16 (b) 0.86 (c) 0.40 (d) -0.80
57. If ryx = -0.8, then rxy is
(a) 0.8 (b) -0.8 (c) 0.64 (d) -0.40
58. If ryx = 0.75, then the correlation between u = -1.5x and v = 2y, then ruv is
(a) 0.8 (b) 0.75 (c) -0.75 (d) -0.40
59. If ryx = 0.75, then the correlation between u = 5x + 2 and v = 2y - 3 ruv is
(a) 0.8 (b) 0.75 (c) 0.64 (d) -0.40

Important Formulas
Regression Line of y on x Regression Line of x on y
̂ ̂ ̂ ̂
∑( ̅ )( ̅) ∑ ∑ ∑ ∑( ̅ )( ̅) ∑ ∑ ∑
∑( ̅) ∑ (∑ ) ∑( ̅) ∑ (∑ )
∑ ∑ ∑ ∑
∑ ∑
(∑ ) (∑ )
∑ ∑
∑ ∑ ∑ ∑ ∑ ∑
∑ (∑ ) ∑ (∑ )
∑ ̅̅ ∑ ̅̅
∑ ̅ ∑ ̅
∑ ∑ ∑ ∑
̅ ̅ ̅ ̅

Correlation Coefficient
∑( ̅ )( ̅) ∑ ∑ ∑ ∑ ̅̅
√∑( ̅ ) ∑( ̅) √[ ∑ (∑ ) ][ ∑ (∑ ) ] √[∑ ̅ ][∑ ̅ ]
∑ ∑ ∑ ∑ ∑ ∑

√[ ∑ (∑ ) ]* ∑ √[ ∑ (∑ ) ][ ∑ (∑ ) ]
(∑ ) +

Covariance of x and y
∑( ̅ )( ̅) ∑ ∑ ∑ ∑ ∑ ∑ ∑
( ) ( )( ) ̅̅ ( )( )

Variance of x
∑( ̅) ∑ ∑ ∑ ∑ ∑
( ) ( ) ( ̅) ( )

Variance of y
∑( ̅) ∑ ∑ ∑ ∑ ∑
( ) ( ) ( ̅) ( )

Regression Lines in terms of Correlation Coefficient


Regression Line of y on x: ̂ ̅ ( ̅) Regression Line of x on y: ̂ ̅ ( ̅)

31
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 15 Association
Write Short answers of the following questions.
1. Define multinomial population.
When each element of a population is assigned to one and only one of more than two attributes
categories, the population is called multinomial population.
2. Differentiate between attribute and variable.
A characteristic that cannot be expressed numerically but only can be observed is called attribute
or qualitative variable. For example, eye color, hobbies, gender, etc.
A characteristic that can be expressed numerically is called variable or quantitative variable. For
example, height, weight, etc.
3. Define class.
A class is a set of objects which are sharing a given characteristic.
4. Define class frequency.
A class frequency is the number of values or objects falling in a particular class.
5. What are positive and negative classes?
The classes formed by positive attributes such as A, B, AB are called positive classes.
The classes formed by negative attributes such as α, β, αβ are called negative classes.
6. Differentiate between negative and positive attributes.
Positive attributes denoted by capital letters A, B,.. represent the presence of attributes.
Negative attributes denoted by greek letters α, β,.. represent the absence of attributes.
7. Define contrary classes.
Classes formed by both positive and negative attributes such as αB, Aβ are called contrary classes.
8. Define ultimate class.
The classes with highest order are called ultimate classes.
9. Define ultimate class frequency.
The frequency of the class of highest order is called ultimate class frequency.
10. Define consistency of data.
The class frequencies that have been observed in different classes of the same population are said
to be consistent, if they confirm with one another and do not conflict each other. In other words,
there would be no negative frequency.
11. Define the term dichotomy.
The process of dividing the objects into two distinct and mutually exclusive classes is called
dichotomy.
12. Define association of attributes.
Two attributes A and B are associated only if they appear together a large number of times.
13. Differentiate between positive and negative association.
( )( )
Two attributes A and B are said to be positively associated if ( ) .
( )( )
Two attributes A and B are said to be negatively associated if ( ) .
14. What is meant by independence of attributes?
( )( )
Two attributes A and B are said to be independent if ( ).
15. Define coefficient of association and write its formula.
The numerical measure of association between two attributes A and B is known as coefficient of
association. The Yule‟s coefficient of association is denoted by Q and is given by
( )( ) ( )( )
( )( ) ( )( )

32
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

16. Differentiate between correlation and association.


Correlation is the degree of covariation between two variables whereas the association is the
degree of covariation between two attributes.
17. Define contingency table.
A table that consists of two or more rows and two or more columns into which the observation are
classified according to two different criteria is commonly called a contingency table.
18. What is the coefficient of contingency?
Coefficient of contingency measures the strength of association of two criteria of classification of a
contingency table. Karl Pearson‟s coefficient of contingency denoted by C and is given by

19. What will you say about A and B if Q = 0, Q = -1, Q = 1?


If Q = 0, the attributes A and B are independent. If Q = 1, the attributes A and B are completely
associated. If Q = -1, the attributes A and B are completely disassociated.
20. Define rank correlation and write its formula.
The correlation between two set of rankings is known as rank correlation and it is measured by
spearman‟s rank correlation coefficient.

( )
21. Write the properties of rank correlation.
1. Coefficient of rank correlation lies between –1 and +1. i.e. -1 ≤ r ≤ +1
2. It is a pure number independent of units of measurement.
22. If (A) = 20, (B) = 10 and n = 40. Find (AB) assuming A and B are independent.
( )( )
( ) ( )
23. If (A) = 400, n = 1000. Find (α)?
As ( ) ( ) ( ) ( ) ( ) ( )
24. If (A) = 40, (AB) = 30. Find (Aβ).
As (Aβ) = (A) – (AB) = 40 – 30 = 10
25. When will be the value of chi-square zero?
When the observed frequencies (f0) are equal to the expected frequencies (fe).
26. If calculated = 5.76 and table value of is 3.84. what would be the conclusion?
As the calculated value of chi-square is greater than the table value so we reject the hypothesis of
independence and conclude that there is association between the attributes.
27. Find the value of the coefficient of contingency, If calculated = 54.06 and n = 492.

√ √

28. For 5 × 3 contingency table, write the number of degree of freedom.


( )( ) ( )( )
29. Write the formula of chi-square test statistic for testing independence of attributes.
( )

30. Find coefficient of rank correlation for 6 pairs and Σd2 = 18.
∑ ( )
( ) ( )

33
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

31. The coefficient of rank correlation of marks obtained by 8 students is two subjects was found
to be 0.19. Find Σd2.
∑ ∑ ∑
( ) ( )

Multiple Choice Questions


Tick the correct answer from the given options.
1. Data on attributes are called:
(a) Quantitative data (b) Continuous data c) Qualitative data (d) Discrete data
2. The process of dividing the objects into two distinct and mutually exclusive classes is called:
(a) Bichotomy (b) Trihotomy c) Dichotomy (d) Classes
3. Qualitative variable is also called:
(a) Frequency (b) Attribute (c) Variable (d) Classes
4. A characteristic which varies in quality from one individual to another is:
(a) Statistic (b) Attribute (c) Variable (d) Regression
5. Eye colour of a men is an example of:
(a) Frequency (b) Attribute (c) Variable (d) Classes
6. Association measures strength of relationship between two:
(a) Constants (b) Attributes (c) Variables (d) Classes
7. In attributes, no class frequency can never be:
(a) Ultimate (b) Positive (c) Negative (d) None
8. If any ultimate class frequency is negative, the data will be:
(a) Consistent (b) Inconsistent (c) Correlated (d) Independent
9. The strength or degree of linear relationship between two attributes is called:
(a) Correlation (b) Regression (c) Association (d) None
10. The total area under the curve of chi-square distribution is:
(a) 0 (b) 1 (c) 0 to ∞ (d) -∞ to +∞
11. The limits of the chi-square distribution are OR Chi-square curve ranges from
(a) 0 (b) 1 (c) 0 to ∞ (d) -∞ to +∞
12. The value of chi-square statistics is always
(a) One (b) 0 (c) Negative (d) Positive
13. The value of chi-square may be:
(a) -5 (b) -3 (c) -1 (d) 3
14. The value of chi-square may be:
(a) Zero (b) Positive (c) Negative (d) Both A & B
15. The shape of chi-square distribution depends on:
(a) Observed frequency (b) Degree of freedom (c) Expected frequency (d) Parameters
16. The chi-square should not be used if any expected frequency is:
(a) Less than 10 (b) Less than 5 (c) Greater than 10 (d) Greater than 15
17. Two attributes A and B are said to be positively associated if:
( )( ) ( )( ) ( )( ) ( )( )
(a) ( ) (b) ( ) (c) ( ) (d) ( )
18. Two attributes A and B are said to be negatively associated if:
( )( ) ( )( ) ( )( ) ( )( )
(a) ( ) (b) ( ) (c) ( ) (d) ( )

34
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

19. Two attributes A and B are said to be independent if:


( )( ) ( )( ) ( )( ) ( )( )
(a) ( ) (b) ( ) (c) ( ) (d) ( )
20. Two attributes are said to be independent, if
(a) Q = 1 (b) Q = -1 (c) Q = 0 (d) None
21. Two attributes are said to be completely associated or have perfect positive association, if
(a) Q = 1 (b) Q = -1 (c) Q = 0 (d) None
22. Two attributes are said to be completely disassociated or have perfect negative association, if
(a) Q = 1 (b) Q = -1 (c) Q = 0 (d) None
23. Coefficient of association (Q) lies between:
(a) 0 and 1 (b) -1 and 0 (c) -1 and +1 (d) None
24. Spearman‟s coefficient of rank correlation lies between:
(a) 0 and 1 (b) -1 and 0 (c) -1 and +1 (d) None
25. If the calculated value of chi-square , then two attributes are:
(a) Positively associated (b) Negative associated (c) Independent (d) Associated
26. The shape of the chi-square distribution is:
(a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) None
27. If n = 150, (A) = 30 and (B) = 60, then (AB) is:
(a) 10 (b) 12 (c) 14 (d) 16
28. The order of (ABC) is:
(a) 1 (b) 2 (c) 3 (d) 0
29. The order of the class (αβ) is:
(a) 1 (b) 2 (c) 3 (d) 0
30. Ultimate class frequency is:
(a) (AB) (b) (A) (c) (B) (d) (α)
31. Presence of attributes is denoted by:
(a) Greek letters (b) Capital letters (c) Small letters (d) Latin letters
32. Absence of attributes is denoted by:
(a) Greek letters (b) Capital letters (c) Small letters (d) Latin letters
33. The numerical measure of association between two attributes A and B is known as:
(a) Correlation coefficient (b) Contingency coefficient (c) Frequency table (d) Regression
34. A table consisting of r rows and c columns is called:
(a) F-table (b) Contingency table (c) Frequency table (d) t-table
35. Positive attributes are denoted by:
(a) A, B,.. (b) α, β , .. (c) Both (d) None
36. Negative attributes are denoted by:
(a) A, B,.. (b) α, β, .. (c) Both (d) None
37. Positive attributes A, B, represents ________ of attributes:
(a) Presence (b) Absence (c) Both (d) None
38. Negative attributes α, β, represents ________ of attributes:
(a) Presence (b) Absence (c) Both (d) None
39. Classes formed by A, B, AB are called:
(a) Positive classes (b) Negative classes (c) Ultimate classes (d) None
40. Classes formed by α, β, αβ are called:
(a) Positive classes (b) Negative classes (c) Ultimate classes (d) None
41. For a contingency table d.f. = 12 and r = 4, then c is
(a) 2 (b) 5 (c) 4 (d) 3

35
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

42. The number of cells in a 4 × 3 contingency table are:


(a) 10 (b) 12 (c) 14 (d) 16
43. For (r × c) contingency table, the degree of freedom should be:
(a) rc (b) (r – 1)(c – 1) (c) rc - 1 (d) (r – 1) c
44. For 4 × 3 contingency table, the degree of freedom should be:
(a) 2 (b) 4 (c) 3 (d) 6
45. For 2 × 2 contingency table, the degree of freedom should be:
(a) 1 (b) 4 (c) 3 (d) 6
2
46. If Σd is equal to zero, the rank correlation of coefficient will be:
(a) 1 (b) –1 (c) 0 (d) 0 to 1

47. If ( )
, the rank correlation of coefficient will be:
(a) 0 (b) –1 (c) 1 (d) 0 to 1
2 2
48. If 6Σd = n(n - 1), the rank correlation of coefficient will be:
(a) 1 (b) –1 (c) 0 (d) 0 to 1
49. The Yates correction for continuity is applied in:
(a) 3×3 contingency table (b) 2×2 contingency table (c) All cases (d) None

Important Formulas
2×2 Contingency Table
Attribute B Total
Attribute A (AB) + (Aβ) = (A) (AB) + (αB) = (B)
B Β
A AB Aβ (A)
(αB) + (αβ) = (α) (Aβ) + (αβ) = (β)
Α αB Αβ (α)
Total (B) (β) N (A) + (α) = (n) (B) + (β) = (n)
( )( ) ( )( )
( ) ( )
Then A and B are independent (not associated) Then A and B are dependent (associated)

( )( ) ( )( )
( ) ( )
Then A and B are positively associated Then A and B are negatively associated

Coefficient of Association If Q = -1, Two attributes are completely disassociated.


( )( ) ( )( ) If Q = 0, Two attributes are independent.
( )( ) ( )( ) If Q = 1, Two attributes are completely associated.

Chi-square test statistic Adjusted Chi-square test statistic (For 2×2 table)
( ) (| | )
∑ ∑

Coefficient of Contingency
Spearman‟s coefficient of rank correlation

√ √ ( )
( )

36
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 16 Time Series


Write Short answers of the following questions.
1. Define the time series.
A time series consists of numerical data collected, observed or recorded at successive time periods.
2. Give any two examples of time series data.
The hourly temperature recorded by weather bureau, the total monthly sales of a book shop and the
annual rainfall recorded at Lahore, etc.
3. Differentiate between signal and noise in time series.
The systematic component of variation in a time series is called signal.
An irregular or random component of variation in time series is called noise.
4. Distinguish between histogram and historigram.
A histogram is a graph of frequency distribution, while the historigram is the graph of time series.
5. What are the components of time series?
The factors that are responsible to bring about changes in a time series, also called the components
of time series, are as follows:
(i) Secular Trend (ii) Seasonal Variations
(iii) Cyclical Movements (iv) Irregular Movements
6. Explain the secular trend.
A secular trend is a long term movement that indicates the general direction of the variation in a
time series.
7. Give two examples of secular trend.
A decline in death rate due to advancement in science, an increase for more food due to increase in
population and a continually increasing demand for smaller automobiles in a country, etc.
8. Explain the season variations.
Seasonal variations are short term movements that indicate the identical changes in a time series
during the corresponding seasons.
9. Give two examples of seasonal variations.
An increased demand of ice-cream in the summer, an increase in sales of clothes and shoes near
Eid and a decrease in the sales of coolers in the winters, etc.
10. Explain the cyclical variations.
Cyclical movements refer to the long term fluctuations or swings about the trend line, which occur
after the period of one year or more.
11. Give any example of cyclical variations.
The famous example of cyclical variation is business cycle, which consists of four stages of a
business cycle.
12. What are the four phases of business cycle?
A business cycle has the four phases: (i) Prosperity (ii) Recession (iii) Depression (iv) Recovery.
13. Explain irregular or random variations.
Irregular or random variations are unsystematic in nature and they occur in a completely
unpredictable manner by chance events, such as wars, floods, earthquakes, strikes, etc.
14. Write examples of the irregular or random variations.
Examples of irregular variations are: Delay of production due to fire in factory, delay of
production due to strike of workers, rise in prices of food due to flood, etc.
15. Define analysis of time series. OR what do you mean by decomposition of a time series?
Analysis of time series is decomposition of a time series into its different components to study
their separate effect.

37
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

16. Explain the two models of the time series. OR What is multiplicative and additive model of
time series?
There are two types of time series models.
Y=T×S×C×I Multiplicative Model
Y=T+S+C+I Additive Model
17. Give names of different methods of measuring secular trend.
Following are the four methods used to measure secular trend.
1. The method of freehand curve.
2. The method of semi-averages.
3. The method of moving averages.
4. The method of least squares.
18. Explain free hand curve method.
In free hand curve method, time series is plotted on a graph and plotted points are linked with the
help of a free hand curve.
19. Write the merits of the free hand curve.
1. It is the simplest method for measuring secular trend.
2. It saves much mathematical calculations.
3. The trend line or curve smoothes out the seasonal variations.
20. Write the demerits of the free hand curve.
1. It depends too much on personal judgment.
2. It is a rough and crude method.
3. It requires too much practice to get a good fit.
21. Explain semi average method.
In semi average method, the observed time series is divided into two equal parts (for odd values
the central value is ignored). The averages are computed for each part and placed against their
center. These averages are then used to fit a linear trend.
22. Write the merits of the semi average method.
1. This method is very easy.
2. It smoothes out seasonal variation.
3. It gives an objective result.
23. Write the demerits of the semi average method.
1. The arithmetic mean used in semi average method is greatly affected by extreme values.
2. This method is not applicable if the trend is not linear.
24. Define the method of moving average.
In moving average method, we find the simple average successively by taking specific number of
values at a time. The process will be continued till all the values of the series are exhausted.
25. Write the merits of the moving average method.
1. The method is easy and simple.
2. It is used to eliminate cyclical and seasonal movements.
26. Write the demerits of the moving average method.
1. It does not give the trend values at the beginning and at the end.
2. The moving averages are highly affected by extreme values.
27. Explain the principal of least square.
The principal of least squares states that the sum of squared deviations of the observed values from
the trend values should be least or minimum.

38
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

28. Write the properties of least square line.


1. The least square regression line always passes through the mean values i.e. ( ̅ ̅ ).
2. The sum of observed values and estimated values is equal. i.e. ∑ ∑̂
3. The sum of the residual error is always zero. i.e. ∑ ∑( ̂)
4. The mean of the observed and estimated values are equal. i.e. ̅ ̅̂
5. The sum of square deviation of observed values from the estimated values is minimum,
∑ ∑( ̂)
6. The fitted regression line ̂ obtained from sample data is the line of best fit since a
and b are unbiased estimates of the parameters α and β of the population regression model.
29. Write the merits of the least square method.
1. The least square estimates are unbiased.
2. It is easy to calculate and interpret.
3. This method gives most satisfactory measurement of secular trend.
30. Write the demerits of the least square method.
1. The method is not applicable for non-linear types of curves.
2. This method gives too much weight to extremely large deviation from the trend.
31. Define smoothing of a time series.
The process of eliminating unwanted fluctuations from time series is called smoothing of time series.
32. Define residual.
The difference between observed and estimated value is called residual or error. i.e. ( ̂)
33. If ̂ . Find trend values for x = 1, 2, 3, 4.
X 1 2 3 4
̂ 13 16 19 22
34. If ̂ . Find trend values for x = -3, -2, -1, 0, 1, 2, 3. Also find ∑ ̂ .
X -3 -2 -1 0 1 2 3 Total
̂ 116 120 124 128 132 136 140 ∑ ̂ 896
35. If ̂ with origin at 1982. Find the equation of straight line with origin at 1980.
To shift the origin to 1980 from 1982, we have to substitute X by (X - 2).
̂ ( )
̂
36. If ̂ with origin at 1980 and unit of measurement of x as one year.
Shift the origin at 1975.
To shift the origin to 1975 from 1980, we have to substitute X by (X - 5).
̂ ( ) ( )
̂ ( ) ( )
̂
37. Write the normal equations for fitting the straight line.
The two normal equations for the straight line are
∑ ∑
∑ ∑ ∑
38. Write the normal equations for the second degree parabola.
The three normal equations for the second degree curve are
∑ ∑ ∑
∑ ∑ ∑ ∑
∑ ∑ ∑ ∑

39
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

39. A straight line is fitted to a time series, ̂ to the years (1990-1994) taking origin
at 1992. Find the trend values.
Years 1990 1991 1992 1993 1994
X -2 -1 0 1 2
̂ -1.4 0.3 2 3.7 5.4

40. Write the formula of residual sum of squares for least square line and second degree curve.
Residual sum of square for least square line:
∑ ∑( ̂) ∑ ∑ ∑
Residual sum of square for second degree curve:
∑ ∑( ̂) ∑ ∑ ∑ ∑
41. Find residual sum of squares from the following information.
̂ ∑ ∑ ∑ .
∑ ∑ ∑ ∑ ( ) ( )
42. Fit a linear trend from the following data. ∑ ∑ ∑ ∑ .
∑ ∑
̂

43. If ̂ : 0.5, -0.5, 1, -1. Find residual sum of squares.
̂ 0.5 -0.5 1 -1 Total
( ̂) 0.25 0.25 1 1 2.50
The residual sum of squares is 2.50
44. How to decide which trend is better among the straight line trend and second degree trend?
The trend which has the smaller sum of squares of residuals is considered better.

Multiple Choice Questions


Tick the correct answer from the given options.
1. A sequence of observation recorded over time is called:
(a) Geographical data (b) Time series (c) Grouped data (d) None
2. Graphical representation of a time series is called OR Graph of a time series is called:
(a) Historigram (b) Histogram (c) Ogive (d) None
3. A time series is a function of:
(a) Frequency (b) Graph (c) Groups (d) Time
4. Decomposition of a time series OR Separating the components of time series for study is called:
(a) Analysis of time series (b) Deseasonalization (c) Detrending (d) Time series
5. Systematic component of variation in a time series is called:
(a) Signal (b) Time series (c) Noise (d) None
6. The unsystematic sequence which follows irregular pattern of variation is called:
(a) Signal (b) Time series (c) Noise (d) None
7. The additive model of the time series is regarded as:
(a) Y = T × S × C × I (b) Y = T + S + C + I (c) Y = T - S - C - I (d) None
8. The multiplicative model of the time series is regarded as:
(a) Y = T × S × C × I (b) Y = T + S + C + I (c) Y = T - S - C - I (d) None
9. A time series has ______ components:
(a) 2 (b) 5 (c) 3 (d) 4
10. Secular trend is measured by ________ methods:
(a) 4 (b) 2 (c) 3 (d) 5

40
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

11. Secular trend is a ________ term variation:


(a) Short (b) Long (c) Fixed (d) Changed
12. Movements in the secular trend are:
(a) Smooth (b) Steady (c) Regular (d) All
13. Long term variations are regarded as:
(a) Seasonal variations (b) Irregular variations (c) Cyclical variations (d) Secular trend
14. Increasing the literacy rate is an example of:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
15. A decline in the death rate due to advancement in science is an example of:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
16. Increasing demand of food / Increasing use of mobile phones is an example of:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
17. Repetitive movements around the trend line in one year or less is:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
18. A time series of annual data can contain which of the following components?
(a) Seasonal variations (b) Secular trend (c) Cyclical variations (d) both (b) and (c)
19. Increase in sale before Eid OR Increase in the demand of ice cream in summer is an example of:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
20. A business cycle has ______ phases:
(a) 2 (b) 3 (c) 4 (d) 5
21. The cyclical variation are called ________ variations:
(a) Short term (b) Long term (c) Midterm (d) None
22. When the production of a thing is decreasing, the stage is called:
(a) Recession (b) Depression (Through) (c) Boom (Prosperity) (d) Recovery
23. The lowest point relative to the rest of the particular cycle is called:
(a) Recession (b) Depression (Through) (c) Boom (Prosperity) (d) Recovery
24. The phase “Prosperity” in a business is an example of:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
25. The recession in a business is an example of:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
26. The fire in a factory is an example of:
(a) Seasonal variations (b) Irregular variations (c) Cyclical variations (d) Secular trend
27. Random event generates:
(a) Seasonal variations (b) Irregular variations (c) Cyclical variations (d) Secular trend
28. In semi average method, data is divided into:
(a) Two groups (b) Three groups (c) Four groups (d) No group
29. In semi average method, if the number of values is odd, then we drop:
(a) First value (b) Last value (c) Middle value (d) No value
30. In moving average method, we can‟t find trend values of some_______ periods:
(a) Middle (b) Starting and end (c) End (d) Starting
31. The method of moving average is used to find the:
(a) Seasonal variations (b) irregular variations (c) Cyclical variations (d) Secular trend
32. Some values at the beginning and at the end of time series are lost in the method of:
(a) Free hand curve (b) Semi Average (c) Moving Average (d) Least square
33. We have to find centered moving average, if the time period is:
(a) Even (b) More than 10 (c) Odd (d) None
34. The method of least square is a process in which the sum of squares of residuals is:
(a) Maximum (b) Least or Minimum (c) Zero (d) None

41
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

35. The best fitted trend is one for which, the sum of squares of residuals is:
(a) Maximum (b) Least or Minimum (c) Zero (d) None
36. The least square line is y = 20 + 5x for the period 1992 - 2000 with origin at 1996, the trend value
for 1997 is:
(a) 15 (b) 5 (c) 20 (d) 25
37. The difference between actual and trend value is called:
(a) Slope (b) Intercept (c) Residual (d) None
38. A second degree curve is fitted to the time series, when the variation in the dependent variable is:
(a) Linear (b) Upward (c) Downward (d) Non-linear
39. In fitting a straight line, the value of slope (b) is independent of
(a) Origin (b) Scale (c) Both (d) None
40. In fitting a straight line to the time, the sum of residual is
(a) Zero (b) Least (c) Most (d) Positive
41. A second degree parabola has _________ constants.
(a) Zero (b) One (c) Two (d) Three
42. If a straight line is fitted to the observed time series, then:
(a) ∑ ∑̂ (b) ∑ ∑̂ (c) ∑ ∑̂ (d) None
43. The number of normal equation in case of straight line are:
(a) Zero (b) One (c) Two (d) Three
44. The number of normal equation in case of second degree curves are:
(a) Zero (b) One (c) Two (d) Three
45. Equation of parabola is called:
(a) Straight line (b) Quadratic equation (c) Both (d) None
46. In fitting a straight line or second degree parabola ∑( ̂ ) is equal to zero when each:
(a) ̂ (b) ̂ (c) ̂ (d) ̂
47. ∑ ∑ ∑ is equal to OR Sum of squares of residuals is denoted by:
(a) e (b) Σe (c) Σe2 (d) None

Important Formulas
Semi Average Method Coding variable x
̂ ̅
̅
h = Unit of measurement of x
h = 1 (for odd time periods) h = 1 (for odd time periods)
Straight Line Second Degree Curve (Parabola or Quadratic Trend)
̂ ̂
Normal Equations Normal Equations
∑ ∑ ∑ ∑ ∑
∑ ∑ ∑ ∑ ∑ ∑ ∑
If Origin is at center (∑ ) ∑ ∑ ∑ ∑
∑ ∑ If Origin is at center (∑ )
∑ ∑ ∑ ∑ ∑ ∑ ∑
∑ ∑ (∑ )
Sum of Squares of Residual
Residual sum of square for least square line: ∑ ∑( ̂) ∑ ∑ ∑
Residual sum of square for second degree curve: ∑ ∑( ̂) ∑ ∑ ∑ ∑

42
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

Chapter 17 Orientation of Computers


Write Short answers of the following questions.
1. What is Computer?
A computer is an electronic device that receives, stores and process data and helps us to solve a
wide range of problems efficiently and quickly.
2. What are the types of computer?.
Following are the types of computer:
(i) Digital Computer (ii) Analog Computer (iii) Hybrid Computer
3. What is digital computer?
A computer that is based on two digits (0 and 1) is called digital computer. It operates by counting
digits and gives output in digital form. For example, digital clocks, digital thermometer, etc.
4. What is analog computer?
An analog computer measures physical quantities directly to give output on scale. For example,
dial clock, weighting machine, etc.
5. What is hybrid computer?
A hybrid computer has features of both digital and analog computers. For example, modem,
robots, modern patrol pumps, etc.
6. What is the classification of computers?
Following are the classification of computers:
(i) Micro Computers (ii) Main Frame Computers (iii) Mini Computers (iv) Super Computers
7. What are micro computers?
Micro computers are designed to be used by one user at a time. They are used at homes, offices,
etc.
8. What are main frame computers?
Main frame or macro computers are very powerful general purpose computers. There is used in
banks, research institutions and weather forecasting departments, etc.
9. What is mini-computer?
Mini computers are smaller version of main frame computers. They are used for maintaining
details of large business organizations to analyze the results of experiments or control the
production activity of a factory.
10. What are super computers?
Super computers are the largest and fastest computers of the Era and designed to process complex
jobs. It can process millions of instructions per second.
11. What are the basic components of a computer?
There are two basic components of a computer. (i) Software (ii) Hardware
12. Define hardware.
The physical parts of the computer are called hardware. i.e. CPU, Monitor, etc.
13. What is Central Processing Unit (CPU)?
CPU is the main part of the computer that performs all the operations according to the program
instructions. It carried out instructions and tells other parts of the computer what to do.
14. Define Arithmetic Logic Unit (ALU)?
The ALU is the place where the actual execution of the instructions takes place during the
processing operation. It carries out the arithmetic and logical operations.
15. Define Random Access Memory (RAM).
It is the memory that computer uses temporarily to store the information as it is being processed.

43
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

16. Define Read Only Memory (ROM).


It is used to store data and programs that are permanent. New data cannot be written on it.
17. Define Software.
The set of instructions given to the computer to perform a specific task is called software.
18. Define Operating System (OS).
An operating system is an integrated set of programs that is used to manage the various hardware
resources of the computer system.
19. What do you know about DOS?
DOS stands for the disk operating system. It is the most widely used operating system.
20. Differentiate between input and output devices.
The devices which are used to give input to the computer are called input devices. For example,
keyboard, mouse, etc.
The devices which are used to take information from the computer are called input devices. For
example, monitor and printer, etc.
21. Name some input devices?
Keyboard, Mouse, Joy Stick, Scanner and Touch Pad, etc.
22. Name some output devices?
Monitor, Printer, LCD, Plotters and Speakers, etc.
23. Differentiate between hard copy and soft copy.
The output received from the printer on the paper is called hard copy.
The temporary output on the screen of monitor or LCD is called soft copy.
24. What are the types of programming language?
There are two types of programming languages.
(i) Low level languages (ii) High level languages.
25. What is low level language?
The languages that are close to machine code are called low level languages.
26. What is high level language?
The languages that are close to human languages are called high level languages.
27. What is assembler?
An assembler is a system program that translates an assembly language to a machine language.
28. What is compiler?
A compiler is a system program that translates high level language to machine language.

Multiple Choice Questions


Tick the correct answer from the given options.
1. A binary number system has the base:
(a) 2 (b) 5 (c) 10 (d) None
2. A decimal number system has the base:
(a) 2 (b) 5 (c) 10 (d) None
3. Printer, monitor and plotter are the:
(a) Storage devices (b) Processing devices (c) Input devices (d) Output devices
4. Keyboard, mouse and scanner are the:
(a) Storage devices (b) Processing devices (c) Input devices (d) Output devices
5. The data processing is done in:
(a) ALU (b) CDR (c) CPU (d) RAM
6. Wall clock is an example of:
(a) Digital computer (b) Analog Computer (c) Disk (d) None

44
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

7. 1024 MB = _________:
(a) 1 KB (b) 1 MB (c) 1 GB (d) 1 TB
8. One Megabyte = _________:
(a) 1000 Bytes (b) 1024 Bytes (c) 1048576 Bytes (d) 102400 Bytes
9. One byte = _________:
(a) 4 bits (b) 6 bits (c) 8 bits (d) 16 bits
10. The mechanical devices that make up the computer are called:
(a) Software (b) AutoCAD (c) Program (d) Hardware
11. The most common input devices are:
(a) Monitor and mouse (b) Keyboard and mouse (c) Monitor and printer (d) None
12. A computer device that can capture images is:
(a) Plotter (b) Scanner (c) Monitor (d) CPU
13. The first commercially available computer:
(a) UNIVAC (b) ENIAC (c) Analytical Engine (d) Mark-I
14. Brain of computer system is called:
(a) CPU (b) Main memory (c) Hard disk (d) Monitor
15. The most common number system used in computer is:
(a) Octal (b) Hexadecimal (c) Decimal (d) Binary
16. Drag and drop is a term associated with:
(a) Keyboard (b) Printer (c) Monitor (d) Mouse
17. Digital computers work with digits:
(a) 0 and 1 (b) 1 and 2 (c) 2 and 3 (d) 0 and 9
18. The arithmetic operations are carried out by:
(a) Control Unit (b) Memory Unit (c) Arithmetic Unit (d) Logical Unit
19. The primary storage unit is also known as:
(a) Storage register (b) Disk memory (c) Accumulator (d) Main memory
20. Secondary storage is also known as:
(a) Long term storage (b) Backup storage (c) Both (a) and (b) (d) None
21. A CD-ROM is a type of:
(a) Optical disk (b) Hard disk (c) Compact disk (d) Floppy disk
22. In computer, RAM stands for:
(a) Read actual memory (b) Random access memory (c) Read any memory (d) None
23. CPU is an example of:
(a) Software (b) Hardware (c) Program (d) Output
24. The unit that executes program instructions is called:
(a) RAM (b) ROM (c) Control Unit (d) CPU
25. ALU stands for:
(a) All logical units (b) Arithmetic logical unit (c) Alone logical unit (d) Binary
26. Which of the following is a common input device?
(a) Keyboard (b) Printer (c) Monitor (d) DVD
27. Which of the following is not an output device?
(a) Modem (b) Monitor (c) Printer (d) Scanner
28. The word computer came from the word:
(a) Compute (b) Measure (c) Memory (d) Count

45
STATISTICS INTER PART-II
WAQAS NADEEM, M.PHIL STATISTICS

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

46

You might also like