Section A: Multiple Choice Practice Questions

1. Which mathematical function best describes a straight-line relationship between two

variables?
A) Exponential function
B) Logarithmic function
C) Linear function
D) Polynomial function
Answer: C) Linear function

2. Continuous compounding is best defined as:

A) Interest calculated annually
B) Interest compounded at regular intervals
C) Interest calculated on a decreasing balance
D) Interest calculated continuously on the initial principal
Answer: D) Interest calculated continuously on the initial principal

3. How is discounting linked to interest?

A) Discounting refers to the interest rate
B) Discounting decreases future values to their present value based on interest rates
C) Discounting increases the future value of money
D) Discounting has no relation to interest rates
Answer: B) Discounting decreases future values to their present value based on interest
rates

4. Which measure of central tendency is most affected by extreme values or outliers?

A) Mean
B) Median
C) Mode
D) Range
Answer: A) Mean

5. What statistical measure describes the variability or spread of data?

A) Mean
B) Median
C) Variance
D) Mode
Answer: C) Variance

6. Which statistical tool best represents the shape and distribution of data?
A) Measures of central tendency
B) Histogram
C) Box plot
D) Range
Answer: B) Histogram

7. What does the concept of expected value represent in probability?

A) The most frequent outcome in an experiment
B) The probability of an event occurring
C) The weighted average of all possible outcomes
D) The spread of data around the mean

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 Answer: C) The weighted average of all possible outcomes

8. Which type of sampling method ensures every member of a population has an equal
chance of being selected?
A) Stratified sampling
B) Convenience sampling
C) Cluster sampling
D) Random sampling
Answer: D) Random sampling

9. Which probability distribution represents the number of successes in a fixed number of

trials?
A) Poisson distribution
B) Binomial distribution
C) Normal distribution
D) Exponential distribution
Answer: B) Binomial distribution

10. Which approach involves making inferences about a population based on sample data?
A) Descriptive statistics
B) Inferential statistics
C) Non-parametric approach
D) Parametric approach
Answer: B) Inferential statistics

11. What statistical technique assesses the relationship between two continuous variables?
A) Correlation analysis
B) Regression analysis
C) Scatter plot analysis
D) Variance analysis
Answer: A) Correlation analysis

12. What does OLS stand for in regression analysis?

A) Outlier Least Squares
B) Ordinary Least Squares
C) Optimal Linear Solution
D) Outlier Linear Smoothing
Answer: B) Ordinary Least Squares

13. Multiple regression analysis involves:

A) Analyzing multiple dependent variables
B) Analyzing multiple independent variables
C) Analyzing multiple categorical variables
D) Analyzing multiple continuous variables
Answer: B) Analyzing multiple independent variables

14. What defines Big Data's characteristic of "velocity"?

A) Large volumes of data
B) High-speed data processing
C) Diverse types of data
D) Data uncertainty
Answer: B) High-speed data processing
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15. Which term refers to the challenge of managing the quality of Big Data?
A) Volume
B) Veracity
C) Velocity
D) Variety
Answer: B) Veracity

16. What does 'Data Definition' involve in the context of Big Data?
A) Defining the business objectives for data analysis
B) Structuring and formatting data for storage and retrieval
C) Defining the speed at which data is processed
D) Defining the variety of data sources used
Answer: B) Structuring and formatting data for storage and retrieval

17. In business, which mathematical function is primarily used to model continuous growth,
such as compound interest or exponential growth?
A) Linear functions
B) Exponential functions
C) Polynomial functions
D) Logarithmic functions
Answer: B) Exponential functions

18. Which mathematical method is utilized to solve a system of equations with multiple
variables?
A) Graphing
B) Simultaneous equations
C) Discrete Compounding
D) Continuous Compounding
Answer: B) Simultaneous equations

19. What does the standard deviation measure in a dataset?

A) Data spread around the mean
B) The central value of the dataset
C) The most frequent value in the dataset
D) The range of the dataset
Answer: A) Data spread around the mean

20. What statistical measure describes the typical or central value of a dataset?
A) Mean
B) Median
C) Mode
D) Variance
Answer: A) Mean

21. Which sampling technique involves each member of the population having an equal
chance of being selected?
A) Cluster Sampling
B) Stratified Sampling
C) Non-Probabilistic Sampling
D) Random Sampling
Answer: D) Random Sampling
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22. What does the concept of probability measure?
A) Certainty of an event occurring
B) Uncertainty of an event occurring
C) Likelihood of an event occurring
D) The frequency of an event occurring
Answer: C) Likelihood of an event occurring

23. Which approach to hypothesis testing doesn’t make assumptions about the population
distribution?
A) Parametric approach
B) Non-Parametric approach
C) Confidence interval approach
D) Descriptive approach
Answer: B) Non-Parametric approach

24. What is the purpose of confidence intervals in hypothesis testing?

A) To set the significance level
B) To determine the p-value
C) To interpret the range of possible values for a population parameter
D) To establish the null hypothesis
Answer: C) To interpret the range of possible values for a population parameter

25. Which statistical method is used to determine the strength and direction of the relationship
between two continuous variables?
A) Regression analysis
B) Correlation analysis
C) Multiple regression analysis
D) Scatter diagram analysis
Answer: B) Correlation analysis

26. What does OLS stand for in the context of regression analysis?
A) Ordinary Least Squares
B) Outliers and Least Squares
C) Optimal Linear Statistics
D) Optimized Least Sensitive
Answer: A) Ordinary Least Squares

27. What term refers to the high-speed processing of large and complex data sets?
A) Data Analytics
B) Data Mining
C) Data Processing
D) Real-time Analytics
Answer: D) Real-time Analytics

28. Which tool or technique is essential for processing and analyzing Big Data efficiently?
A) Machine Learning
B) Excel Spreadsheets
C) Statistical Software
D) Database Management Systems
Answer: A) Machine Learning

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29. Which mathematical function is used to describe continuous growth or decay?
A) Linear functions
B) Exponential functions
C) Polynomials
D) Simultaneous equations
Answer: B) Exponential functions

30. What is the primary purpose of descriptive statistics?

A) Predict future outcomes
B) Summarize and present data
C) Determine probabilities
D) Perform hypothesis testing
Answer: B) Summarize and present data

31. In probability theory, what does the concept of "expected value" represent?
A) Most frequent outcome
B) Average outcome weighted by probabilities
C) The highest possible outcome
D) The lowest possible outcome
Answer: B) Average outcome weighted by probabilities

32. Which approach is used in hypothesis testing to analyze data that does not meet
assumptions of normality?
A) Parametric approach
B) Non-parametric approach
C) Inferential approach
D) Descriptive approach
Answer: B) Non-parametric approach

33. In regression analysis, what does the coefficient of determination (R-squared) measure?
A) Strength of the relationship between variables
B) Significance of the slope coefficient
C) Probability value
D) Variability in the dependent variable explained by the independent variable
Answer: D) Variability in the dependent variable explained by the independent variable

34. What is the solution to the simultaneous equations: 2x + y = 5 and x - y = 3?

A) (x = 2, y = 1)
B) (x = 3, y = 1)
C) (x = 1, y = 2)
D) (x = 1, y = 3)
Answer: C) (x = 1, y = 2)

35. Which measure of central tendency is more robust in handling outliers?

A) Mean
B) Median
C) Mode
D) Range
Answer: B) Median

36. If the probability of event A is 0.4 and the probability of event B is 0.6, what is the probability
of both events occurring if they are independent?
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 A) 0.24
B) 0.10
C) 0.40
D) 0.60
Answer: A) 0.24

37. In hypothesis testing, what does a p-value less than the significance level indicate?
A) Reject the null hypothesis
B) Accept the null hypothesis
C) Insufficient data to make a decision
D) The alternative hypothesis is incorrect
Answer: A) Reject the null hypothesis

38. What does a negative correlation coefficient between two variables indicate?
A) Strong positive relationship
B) Strong negative relationship
C) No relationship
D) Weak positive relationship
Answer: B) Strong negative relationship

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