Chapter No.

10 Normal Distribution
1. What is the relationship between binomial distribution and normal distribution?
Normal distribution is limiting form of binomial distribution when n is large and p is not very small.
2. What is meant by normal curve?
The graph of normal probability density function is called normal curve.
3. Define standard normal variate.
A normal random variable x with mean µ and variance σ2 can be transformed into standard normal variable by the
𝑥−𝜇
following relation 𝑧 = 𝜎 , where z has mean = 0 and variance = 1.
4. Write the equation of standard normal distribution.
1 −1𝑧 2
𝑓(𝑧) = 𝑒 2 − ∞ < 𝑧 < +∞
√2𝜋
5. Find the equation of normal distribution with mean = µ and variance = σ2.
1 1 𝑥−𝜇 2
𝑓(𝑥) = 𝑒 −2( 𝜎 ) − ∞ < 𝑥 < +∞
𝜎√2𝜋
6. Write down the equation of normal distribution with mean=30 and SD=10.
1 𝑥−30 2 −(𝑥−30)2
1 − (
2
) 1
𝑓(𝑥) = 𝑒 √10 = 𝑒 20 − ∞ < 𝑥 < +∞
√10√2𝜋 √20𝜋
7. What are the values of two constants e and π in the equation of normal distribution?
1 1 𝑥−𝜇 2
− ( )
𝑓(𝑥) = 𝑒 2 𝜎 − ∞ < 𝑥 < +∞
𝜎√2𝜋
In the equation, e = 2.718282 and π = 22/7 = 3.141593
8. What are the parameters of normal distribution?
There are two parameters of normal distribution, mean = µ and variance = σ2.
9. In standard normal distribution, what is the value of mode and median?
In standard normal distribution the value of mean is zero. The mean, median and mode are all equal for normal
distribution, thus mode and median both are 0.
10. What is the role of “σ” in normal distribution?
µ is location parameter, thus for different value of µ, the center of distribution changes.
σ is shape parameter, thus for higher value of σ the shape of normal distribution becomes flatten.
11. Write down properties of normal distribution.

12. In normal distribution mean = 40, find median and mode.

For normal distribution, Mean = Median = Mode
So Median = 40 and Mode = 40.
13. If X is N(25,25) find the value of maximum ordinate.
1
The maximum ordinate occurs at X = µ and value of maximum ordinate is 𝜎 2𝜋
√
1
Here σ = √25 = 5, the maximum ordinate is 5√2𝜋
= 0.07979
14. If X ̴ N(100,100), find the value of maximum ordinate of normal curve.
1
The maximum ordinate occurs at X = µ and value of maximum ordinate is 𝜎 2𝜋
√
1
Here σ = √100 = 10, the maximum ordinate is 10√2𝜋
= 0.03989
15. Why odd order moments about mean are zero in a normal distribution?
The odd order mean moments of normal distribution are zero, because normal distribution is symmetrical.
16. Define the points of inflexion in normal distribution.
The point on the graph where the function changes its concavity is called point of inflexion. The point of inflexion of
normal distribution are equidistant from µ. They occur at x = µ - σ and x = µ + σ
17. The value of Q1 = 8 and Q3=17 in a normal distribution. Find the values of mean and median.
Q1 + Q 3 8 + 17
µ = mean = = = 12.5
2 2
In normal distribution Mean = Median = Mode = 12.5
18. In normal distribution Q1 = 65 and Q3=75, find µ.
Q1 + Q 3 65 + 75
µ= = = 70
2 2
19. In a normal distribution the value of µ2 =16. Find value of µ4.
𝜇
In normal distribution 𝛽2 = 42 = 3, so 𝜇4 = 3. 𝜇22 = 3. (16)2 = 768
𝜇2

20. The Q.D. = 3.3725 in normal distribution. Find the value of mean deviation.
In normal distribution, Q.D = 0.6745.σ
So, 0.6745σ = 3.3725, Hence σ = 5
M.D = 0.7979 σ = 0.7979(5) = 3.9895
21. If µ=85 and σ=4.5, find the value of Q3 of normal distribution.
In normal distribution, Q3=µ + 0.6745 σ = 85 + 0.6745 (4.5) =88.035
22. If X ̴ N(100,64), find the value of (i) M.D (ii) Q.D
Here σ = √64 = 8
In normal distribution, Q.D = 0.6745.σ = 0.6745 (8) = 5.396
M.D = 0.7979 σ = 0.7979(8) = 6.383
23. If X ̴ N(24,16), find Q1 and Q3.
Here σ = √16 = 4
In normal distribution, Q1 = µ - 0.6745 σ = 24 - 0.6745 (4) = 21.302
Q3 = µ + 0.6745 σ = 24 + 0.6745 (4) = 26.698
24. In normal distribution σ2=15. Find the values of β1 and β2.
In normal distribution the value of β1 = 0 and β2 = 3.
25. A normal distribution has mean =85 and SD=4, find Q1 and Q3.
In normal distribution, Q1 = µ - 0.6745 σ = 85 - 0.6745 (4) = 82.302
Q3 = µ + 0.6745 σ = 85 + 0.6745 (4) = 87.698
26. In normal distribution find M.D and Q.D. if mean 50 and S.D is 10.
In normal distribution, Q.D = 0.6745.σ = 0.6745 (10) = 6.745
M.D = 0.7979 σ = 0.7979(10) = 7.979
27. If second moment about mean is 4. Find µ3 and µ4 of normal distribution.
Given that µ2 = 4
µ3 = 0, because all odd order moments of normal distribution are zero.
𝜇
In normal distribution 𝛽2 = 𝜇42 = 3, so 𝜇4 = 3. 𝜇22 = 3. (4)2 = 48
2
28. If X ̴ N(80,36), find Q1 and Q3.
Here σ = √36 = 6
In normal distribution, Q1 = µ - 0.6745 σ = 80 - 0.6745 (6) = 75.953
Q3 = µ + 0.6745 σ = 80 + 0.6745 (6) = 84.047
Chapter No. 11 Sampling
1. Define population and sample.
Population: The aggregate or group of elements having some common observable characteristic is called population.
Sample: The representative part of population is called sample.
2. Define finite and infinite population.
Finite Population: A population which contains limited number of elements is called finite population.
Infinite Population: A population which contains unlimited/uncountable elements is called infinite population.
3. Define target and sampled population.
Target Population: A population about which results are desired to be generalized.
Sampled Population: A population from which the sample is taken.
4. Differentiate between parameter and statistic.
Parameter: A numerical quantity which is computed from population data.
Statistic: A numerical quantity which is computed from sample data.
5. Define census and sample survey.
Census: If information collected from each element of population, then study is called census or complete enumeration.
Sample Survey: If information collected from a part of population, then study is called sample survey.
6. What is the basic requirement for a sample?
The basic requirement for a sample is to represent the characteristic of population with minimum cost, labor and time.
7. Define the term ‘Sample Statistic’. Give an example.
∑X
̅=
A numerical quantity which is computed from sample data is called sample statistic. i.e. sample mean (X )
n
8. What is sampling?
Sampling is procedure by which sample is selected from a given population.
9. What are the basic aims/purposes of sampling?
i) To obtain maximum information about characteristic of population with minimum cost, time, and effort.
ii) To find the reliability of estimates derived from sample.
10. Write any two advantages of sampling.
(i) Time saving (ii) Economic (iii) Accuracy (iv) Feasibility
11. What are sampling units and sampling frame?
Sampling Units: Sampling units are those basic units of population by which sample design is planned.
Sampling Frame: A complete list of all sampling units is called sampling frame.
12. What is meant by the term ‘Sample Desing’?
A sample design is a plan for obtaining a sample from a given population before collecting any data.
13. What are two main types of sampling?
(i) Random (Probability) Sampling (ii) Non-Random (Non-Probability) Sampling
14. Differentiate between random sampling and non-random sampling.
Random Sampling: In random sampling each element of population has some known non-zero chances of being included in
sample.
Non-Random Sampling: In non-random sampling some element(s) have zero chances of being included in sample.
15. Write the names of common probability sampling.
i) Simple random sampling (ii) Stratified Sampling (iii) Systematic Sampling (iv) Cluster sampling
16. What do you mean by judgement sampling?
In judgement sampling samples are taken according to personal judgement or professional experience.
17. Explain Quota sampling.
In quota sampling elements are chosen elements belong some specific characteristic or subgroup.
18. Define simple random sampling.
In random sampling each element of population has equal probability/chances of being included in sample.
19. Enlist the various methods of selecting the simple random sample.
(i) Sampling with replacement (ii) Sampling without replacement
20. Discuss random sampling with replacement.
In sampling with replacement, units are selected in such a way that a randomly selected unit is returned to population
before the selection of next element.
21. Discuss random sampling without replacement.
In sampling without replacement, units are selected in such a way that a randomly selected unit is not returned to
population before the selection of next element.
22. Define sampling distribution.
The probability distribution of sample statistic is called sampling distribution.
23. Explain briefly the meaning of sampling error.
The difference between sample statistic and population parameter is called sampling error. i.e ̅
X−𝜇
24. Describe Bias.
The difference between expected value sample statistic and population parameter is called sampling error.
̅) − 𝜇
i.e 𝐸(X
25. Give a short account of shape of the sampling distribution of 𝐗 ̅.
The shape of sampling distribution of sample mean (X ̅) is normal distribution.
26. All possible samples are drawn from a normal population with mean = 50 and S.D = 5. What is the sample size if
̅ is 1.0?
the S.E. of 𝑿
σ
̅) = σX̅ =
S. E(X
√n
5
As given ̅) = 1.0, 𝜎 = 5,
S. E(X So 1.0 = ≅ 𝑛 = 25
√n

𝟐 𝟏
̂𝟏 − 𝐩
27. Given 𝛑𝟏 = , 𝐧𝟏 = 𝟐 𝐚𝐧𝐝 𝛑𝟐 = , 𝐧𝟐 = 𝟐 find 𝐯𝐚𝐫(𝐩 ̂𝟐 ).
𝟑 𝟐
2 1 1 1
π1 (1 − π1 ) π2 (1 − π2 ) √3 𝑥 3 2 𝑥 2 2 1
var(p̂1 − p̂2 ) = √ + = + = √ + = √0.2361 = 0.4859
𝑛1 𝑛2 2 2 18 8
28. Find 𝛔𝟐𝐗̅ 𝐢𝐟 𝐍 = 𝟔, 𝐧 = 𝟐 𝛔 = 𝟒 for sampling with and without replacement.
Sampling With Replacement Sampling Without Replacement
2
σ σ2 N − n
σ2 X̅ = σ2 X̅ =
n n N−1
2
42 4 6−2
σ2 X̅ = =8 σ2 X̅ =
2 2 6−1
2
32
σ X̅ = = 6.4
5

̅
Properties of Sampling Distribution of X ̅1 − X
Properties of Sampling Distribution of X ̅2
With Replacement Without Replacement With Replacement Without Replacement
𝜇𝑋̅ = 𝜇 𝜇𝑋̅ = 𝜇
σ2 σ2 N − n
σ2 X̅ = σ2 X̅ =
n n N−1
σ
S. E(X̅) = σX̅ = σ N−n
√n ̅) = σX̅ =
S. E(X √
√n N − 1

Properties of Sampling Distribution of p̂ Properties of Sampling Distribution of p̂1 − p̂2

With Replacement Without Replacement With Replacement Without Replacement
𝜇p̅̂ = 𝜋 𝜇p̅̂ = 𝜋
𝜋(1 − 𝜋) 𝜋(1 − 𝜋) N − n
σ2 p̂ = σ2 p̂ =
n n N−1
S. E(p̂) = σp̂
𝜋(1 − 𝜋)
̂ ) = σp̂ = √
S. E(p
n 𝜋(1 − 𝜋) N − n
=√
n N−1
Chapter No. 12 Estimation
1. What is statistical inference?
A branch of statistics which deals with drawing conclusions about population parameter by using information of
sample.
2. Types of Statistical inference.
There are two types of statistical inference
i) Estimation of parameter
ii) Testing of hypothesis
3. What is an estimator?
Estimator is sample statistic which used to estimate unknown value of population parameter.
4. What is meant by point estimate?
A point estimate is a specific value of estimator computed from sample data.
5. Enlist the properties of a good estimator.
An estimator is said to be good estimator if it satisfies the properties
i) Unbiasedness
ii) Efficiency
iii) Consistency
iv) Sufficiency
6. What is meant by unbiasedness?
An estimator T is said to unbiased estimator of parameter θ if E(T) = θ
7. Define biased estimator.
An estimator T is said to biased estimator of parameter θ if E(T) ≠ θ
8. What is bias?
If T is biased estimator of parameter θ then Bias = E(T) - θ
9. What is interval estimate?
An interval estimate is an interval calculated by sample data such that prior to sampling, it has high probability of
including unknown value of population parameter.
10. What does confidence coefficient mean?
The confidence coefficient (1-α) is the probability prior to sampling that the interval will include the unknown value
of population parameter.
Chapter No. 13 Testing of Hypothesis
1. Describe the hypothesis.
A statistical hypothesis is a statement/assertion about population parameter, which may or may not be true.
2. Distinguish between
(i) null hypothesis (ii) alternative hypothesis
i) A null hypothesis denoted by Ho , which is tested for possible rejection under the assumption that it is true.
ii) An alternative hypothesis denoted by H1, it is that hypothesis we are willing to accept if null hypothesis is
rejected.
3. What is meant by simple and composite hypothesis?
A hypothesis is said to be simple if it species the underlying population distribution.
A hypothesis is said to be composite if it does not specify underlying population distribution.
4. What is meant by test of hypothesis?
Test of hypothesis is a procedure to determine whether or not the assumption about population parameter is
supported by the information in the sample.
5. What is meant by type-I error?
A type-I error is made when a true null hypothesis (Ho) is rejected.
6. Define type-II error.
A type-II error is made when a false null hypothesis (Ho) is accepted.
7. Give two examples each of type-I and type-II error.
Examples of Type-I Error
i) A shining student is failed in exam.
ii) An innocent is proved guilty.
Examples of Type-I Error
iii) A shining student is failed in exam.
iv) A guilty person is exonerated.
8. Define level of significance.
It is the probability of rejecting a true null hypothesis. It is denoted by α.
9. Define level of confidence.
It is the probability of accepting a true null hypothesis. It is denoted by 1-α.
10. Define test statistic.
A sample statistic which provides the basis for deciding whether or not the null hypothesis is rejected.
11. Define region of acceptance.
A set of values of test statistic for which the null hypothesis is not rejected.
12. What is critical region? OR Define region of rejection.
A set of values of test statistic for which the null hypothesis is rejected.
13. Define degree of freedom.
Total number of observations minus the number of restrictions is called degree of freedom.
14. What is meant by one tailed test?
If critical region is located only in one tail of the sampling distribution then the test is called one tailed test.
15. What is meant by two tailed test?
If critical region is located in both tails of the sampling distribution then the test is called tailed tailed test.
Chapter No. 14 Simple Regression and Correlation
1. Explain what is regression?
It the relationship that describe the dependence of a variable on other variables.
2. What is simple regression?
It the relationship that describe the dependence of a variable on one independent variable.
3. Distinguish between dependent and independent variable.
Independent Variable: The variable which forms the basis of estimation or prediction, is called independent
variable. The other names of independent variable are, predictor, regressor, controlled, explanatory variable.
Dependent Variable: The variable whose values depends upon the selected values of independent variables. The
other names of dependent variable are, predictand, regressand, response, explained variable.
4. What is scatter diagram?
The scatter diagram is a set of points in a rectangular co-ordinate system (x is measured on horizontally and y
measured on vertically), where each point represents an observed pair of values.
5. Describe regression coefficient. OR Define slope of regression line.
Regression coefficient indicates the change in dependent variable due to per unit increase in independent variable.
6. Explain the method of least square for fitting a regression line.
It is the method for estimation of parameter of regression model. In this method sum of square of residual of
observed values from their estimated values is least.
7. What is meant by residual(error) in regression model.
The term residual is referred to difference of observed values from their estimated values.
8. Write down the formula of a in various form.
For regression Y on X (y=a+bx) For regression X on Y (x=c+dy)
∑ y − b. ∑ x ∑ x − d. ∑ y
a= = y̅ − b. x̅ c= = x̅ − d. y̅
n n
9. Write down formulae of byx in different form.
For regression Y on X (y=a+bx) For regression X on Y (x=c+dy)
∑(x − x̅)(y − y̅) ∑(x − x̅)(y − y̅)
byx = 2 bxy =
∑(x − x̅) ∑(y − y̅)2
∑ xy − nx̅ y̅ ∑ xy − nx̅ y̅
byx = 2 2 bxy =
∑ x − nx̅ ∑ y 2 − ny̅ 2
n ∑ xy − ∑ x ∑ y n ∑ xy − ∑ x ∑ y
byx = 2 2 bxy =
n ∑ x − (∑ x) n ∑ y 2 − (∑ y)2
Sxy Sxy
byx = 2 bxy = 2
Sx Sy
10. Write down properties of least square regression line.
i. The sum of residual is zero. ∑ ei = 0 where ei = Yi − Y ̂i
ii. The sum of observed values is equal to the sum of estimated values. ∑ Yi = ∑ Y ̂i
2 2
iii. The sum of squared residuals is minimum. ∑ ei = ∑ y − a ∑ y − b ∑ xy
iv. The regression line always passes through means (x̅, y̅) of the data.
11. What is the value of sum of residuals /errors, in case of a straight line?
The sum of residual is zero. ∑ ei = 0
12. What is sum of squared residuals?
The sum of squared residuals is minimum. ∑ e2i = ∑ y 2 − a ∑ y − b ∑ xy
13. Name the point through which regression line passes?
The regression line always passes through means (x̅, y̅) of the data.
14. Define the term ‘Correlation Coefficient’.
The correlation coefficient measures the strength of relationship between two variables. OR
The correlation coefficient measures the degree of interdependence of two variables.
15. What is positive correlation?
The correlation is said to be positive if the two variables tends to move in the same direction.
16. Define negative correlation.
The correlation is said to be negative if the two variables tends to move in the opposite direction.
17. Write the relationship between regression coefficients and correlation coefficient.
The correlation coefficient is the geometric mean of the two regression coefficients. i.e. rxy = √bxy . bxy
18. Describe the properties of correlation coefficient.
i. The correlation coefficient is the geometric mean of the two regression coefficients. i.e. rxy = √bxy . bxy
ii. The correlation coefficient is symmetric about x and y. i.e. rxy = ryx
iii. The correlation coefficient is independent of change of origin and scale. i.e. rxy = ruv
iv. The correlation coefficient always lies between -1 and +1. i.e. −1 ≤ rxy ≤ +1
19. Interpret the meanings of when r = +1 and r = -1.
Perfect positive correlation (r = +1): The correlation is said to be perfect positive if the relationship between two
variables is perfectly linear with positive slopes.
Perfect negative correlation (r = -1): The correlation is said to be perfect negative if the relationship between two
variables is perfectly linear with negative slopes.
20. Write down the two formulas of correlation coefficient by direct method and indirect method.
By direct method By shortcut or indirect method
∑(x − x̅)(y − y̅) ∑(u − u̅)(v − v̅)
𝑟xy = 𝑟uv =
√∑(x − x̅)2 . ∑(y − y̅)2 √∑(u − u̅)2 . ∑(v − v̅)2
∑ xy − nx̅ y̅
𝑟xy =
√(∑ x 2 − nx̅ 2 )(∑ y 2 − ny̅ 2 )
n ∑ xy − ∑ x ∑ y
𝑟xy =
√[n ∑ x − (∑ x)2 ][n ∑ y 2 − (∑ 𝑦)2 ]
2

Sxy
𝑟xy =
Sx Sy
21. Write symmetric property of correlation coefficient.
The correlation coefficient is symmetric about x and y. i.e. rxy = ryx
x−a y−c
22. If U = and V = , is byx=bvu? Yes or No? Why? Comment.
b d

23. If in a regression line 𝑥̂ = 𝑎 + 𝑏𝑦, ∑ 𝑥 = 215, find the value of ∑ 𝑥̂.

24. If rXY= -0.75, SY=5 and ∑(𝑋 − 𝑋̅)(𝑌 − 𝑌̅) = −15𝑛, then find SX.

25. Given that bxy = -16.6, byx =-0.4, find r.

̂ = 3 − 0.38X, X
26. Find correlation coefficient from the following equations: Y ̂ = 1.5 − 2.7Y

27. What is r? if byx = 0.2 and bxy = 0.30.

28. Given byx = -1.4 and bxy = -0.87. Find r.

29. Given bxy = -1.4 and rxy = -0.87. Find byx.

30. Given n = 15, Sx = 7.933, Sy = 16.627, ∑(x − x̅)(y − y̅) = 148 find byx.

31. Given that 𝑥̅ = 9.2, 𝑦̅ = 16.5 𝑎𝑛𝑑 𝑏𝑥𝑦 = 0.64 find the regression line x on y.
 Chapter No. 15 Association

i. Differentiate between attribute and variable.

Attribute: A characteristic which only varies in quality from one individual to another is called an attribute. (Honesty,
Beauty, etc.)
Variable: A characteristic which varies from one individual to another is called a variable.
ii. What is a class?
A class is set of the objects which are sharing common characteristic.
iii. Define class frequency.
A class frequency is number of observations which are distributed in a class.
iv. Explain positive and negative class.
The classes A, B and AB denoted by positive attributes are called positive classes.
The classes α, β and αβ denoted by negative attributes are called negative classes.
v. What is order of the class?
Order of class is known by the number of attributes specifying the class.
Total number of observation (n) is called frequency of class of order zero.
A class specified by one attribute is called class of order 1.
A class specified by two attributes is called class of order 2.
vi. What is ultimate class frequency?
The frequencies of classes of highest order are called ultimate class frequencies.
vii. Describe independence of two attributes.
(𝐴)(𝐵)
Two attributes A and B are said to be independent if (𝐴𝐵) = 𝑛
viii. Differentiate between association and correlation.
Correlation is interdependence of two quantitative variables.
(𝐴)(𝐵)
Two attributes A and B are said to be associated if they not independent. (𝐴𝐵) ≠ 𝑛
ix. What is negatively association? OR When two attributes are said to be negatively associated?
(𝐴)(𝐵)
Two attributes A and B are said to be negatively associated if. (𝐴𝐵) <
𝑛
x. What is positive association?
(𝐴)(𝐵)
Two attributes A and B are said to be positively associated if. (𝐴𝐵) > 𝑛
xi. Define co-efficient of association.
The strength of association between two attributes A and B, is known as coefficient of association.
Yules coefficient of Association Q is
(𝐴𝐵)(𝛼𝛽) − (𝐴𝛽)(𝛼𝐵)
𝑄=
(𝐴𝐵)(𝛼𝛽) + (𝐴𝛽)(𝛼𝐵)
If Q = 0, the two attributes are independent.
If Q = +1, the two attributes are completely associated.
If Q = -1, the two attributes are completely disassociated.
xii. Define a contingency table.
A frequency table of two attributes A (with r categories) and B (with c categories) is called r x c contingency table.
xiii. Define coefficient of contingency.
The coefficient of contingency is a measure of strength of association between two criteria of classification.
xiv. Define degree of freedom.
Total number of observations minus the number of restrictions is called degree of freedom.
xv. What is Rank Correlation?
The correlation between ranks of individuals for both the variables X and Y is called rank correlation.
xvi. What are the properties of rank correlation coefficients?
Rank correlation always varies between -1 and +1.
xvii. Determine whether two attributes are independent or associated N=1024, (A)=144, (B)=384, (AB)=54.

xviii. Are A and B independent if (AB)=12, (A)=30, (B)=40, N=100.

Chapter No. 16 Analysis of Time Series

i. What is time series?

The sequence of observations of a variable X (x1, x2, … , xn), recorded in accordance with their time of occurrence
(t1, t2, … , tn) is called time series.
ii. Discuss historigram.
Historigram is graphic representation of time series which reveals changes occurred at different time periods.
iii. What is difference between signal and noise?
Signal: It is a systematic (regular) component of variation in a time series
Noise: It is irregular component of variation in a time series
iv. What is meant by analysis of time series?
The decomposition of time series into its different components for study, is called analysis of time series.
v. What are the components of time series?
1. Secular Trend (T)
2. Seasonal Variations (S)
3. Cyclical fluctuations (C)
4. Irregular Movements (I)
vi. Write additive model of time series.
T+S+C+I
vii. Write additive model of time series.
T.S.C.I
viii. Explain the term secular trend.
The secular trend is a line or curve that shows the general tendency of time series. It represents relatively smooth and
gradual movements of a time series in the same direction (upward or downward).
ix. Describe the seasonal variation with an examples.
The seasonal variation are short term movements that represents the regularly recurring changes according to seasons
in a time series.
Examples: (increase in consumption of electricity in summer, increase in sales of cold drinks in summer, increase in
sales of woolen clothes in winters, e.t.c.)
x. What is meant by cyclical variation?
The cyclical fluctuations are the long term oscillations about the trend. A business cycle has following four phases:
1. Trough (Depression)
2. Expansion (Recovery)
3. Peak (Boom or Prosperity)
4. Recession (Contraction)
xi. Define irregular variation.
The irregular movements are unpredictable changes that indicate the effect of random events. These variations are
also known as erratic, accidental, residual or random movements.
xii. Give some examples of irregular/random variation.
A steel Strike, delaying production.
A fire in factory delaying production.
xiii. Write down various methods of measuring secular trend in time series.
1. Method of free hand curve
2. Method of semi Averages
3. Method of Moving Averages
4. Method of least squares
xiv. Give two demerits of free hand curve.

xv. Describe semi average method.

 xvi. Define the method of moving averages.

xvii. Explain the method of least square in time series.

xviii. Write normal equations of straight line.

xix. The semi averages for the years 2003-2010 are 160 and 120. Find the trend values for the years 2003 and 2010.

xx. ̂ = 𝟎. 𝟔 + 𝟏. 𝟐 𝑿. Show that ∑ 𝒆𝟐𝒊 = 𝟐.

Given Y=1,2,3,4,5,6, X=0,1,2,3,4 and 𝒀

xxi. ̂ = 𝟕 + 𝟎. 𝟒 𝑿, the unit of X being one year. Observations are from 2002 to 2007 with origin at the middle of
𝒀
2004 and 2005. Find the trend values up to year 2008.

xxii. Given y=1, 2, 3, 4. X= 0, 1, 2, 5. If 𝒚 ̂)𝟐 .

̂ = 𝟎. 𝟔 + 𝟏. 𝟐𝒙, 𝒕𝒉𝒆𝒏 𝒇𝒊𝒏𝒅 ∑(𝒚 − 𝒚

xxiii. ̂ = 𝟏𝟐𝟖 + 𝟒𝐗, 𝐗 = −𝟑, −𝟐, −𝟏, 𝟎, 𝟏, 𝟐, 𝟑. Find ∑ 𝐲̂ =?

Given 𝐘