12th Commerce / Statistics

* indicates Chapters of Part - 2

SECTION Type of Questions : MCQs Question Numbers : 1 to 20
Chapters Covered : All Marks of each question : 1

A Total Marks of the Section :

Que. No. : 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Chap. No. : 1 1 2 2 3 3 4 4 1* 1* 2* 2* 2* 3* 3* 3* 4* 4* 5* 5*
20

QUESTION NO. 1 & 2

Chapter - 1 : Index Number
1. Which method is useful to compare the long term 7. Which expenditure of items is assigned as weights
variations in the values of the variable ? in the method of family budget ?
(a) Chain base method (b) Laspeyre’s method (a) Expenditure of selected year
(c) Fixed base method (d) Paasche’s method (b) Average annual expenditure

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2. Which consumption is used in the calculation of (c) Expenditure of base year
Laspeyre’s index number ?

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(d) Expenditure of current year
(a) Consumption of base year 8. If the purchasing power of money is 0.75 in the

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(b) Consumption of current year year 2016 with respect to the base year 2015 then

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(c) Consumption of average year what will be the price index number for the year
(d) Consumption of any year

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2016 ?
3. The price of an item increased by 4.5 times in the (a) 750 (b) 175 (c) 133.33 (d) 275

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current year as compared to the base year. What 9. If the average disposable income of families of a

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will be the price index number ? class is ˆ20,000 in the year 2013 and if the cost of

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(a) 45 (b) 450 (c) 550 (d) 350 living index number of that class for the year 2015
4. Which prices are considered in the construction uc
with the base year 2013 is 130, what should be
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of the cost of living index number ? the average disposable income of the families of
(a) Market price (b) Wholesale price
of

this class in the year 2015 ?

(c) Average price (d) Retail price (a) ˆ26,000 (b) ˆ20,130
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5. Which average is considered as the best average (c) ˆ20,000 (d) ˆ14,000
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in construction of the index number ?

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10. What weight is assigned as expenditure to the

(a) Harmonic mean (b) Arithmetic mean
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p1
(c) Weighted mean (d) Geometric Mean price relatives p of the items to obtain the
..

6. Which index number gives idea of the standard 0

..

of living of people ? formula for Paashe’s index number ?

..
..

(a) Index number of industrial production (a) p0 q0 (b) p1q1 (c) p0 q1 (d) p1q0
..

(b) Quantity index number

..

Ans. 1 (c) 2 (a) 3 (c) 4 (d) 5 (d)

(c) Fisher’s index number
..

6 (d) 7 (c) 8 (c) 9 (a) 10 (c)

..

(d) Cost of living index number

..

QUESTION NO. 3 & 4

..
..
..

Chapter - 2 : Linear Correlation

..

1. Which kind of the correlation exists if the following 3. The measurement unit of a variable ‘Weight’ is kg
..
..

scatter diagram is of two variables X and Y ? and that of ‘Height’ is cm. What can you say about
..

(a) Perfect Positive correlation the measurement unit of the correlation coefficient
. .. (b) Partial Positive correlation
. between them ?
. ..
. (c) Perfect Negative correlation (a) kg (b) cm
.. (d) Partial Negative correlation (c) km (d) does not have any unit
2. What is the range of the correlation coefficient r ? 4. If r (-x, y) = - 0.5, then what is the value of r (x, -y) ?
(a) -1 < r < 1 (b) 0 to 1 (a) 0.5 (b) - 0.5 (c) 1 (d) 0
(c) -1  r  1 (d) -1 to 0
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 Important Theory for all Sections
5. Which kind of the correlation can be obtained if 8. In the method of rank correlation, if the ranks of
the two variables are varying in opposite two variables are exactly in reverse order then
direction in constant proportion ? what is the value of r ?
(a) Partial Positive correlation (a) r = 0 (b) r = -1 (c) r = 1 (d) r = 0.1
(b) Perfect Negative correlation 9. What is the value of the rank correlation
(c) Perfect Positive correlation coefficient if d2 = 0 ?
(d) Partial Negative correlation (a) 0 (b) -1 (c) 1 (d) 0.5
xA yB 10. In usual notations, which term is added in d2 for
6. If u = each repeated observation in the rank correlation ?
cx and v = c y , cx > 0, c y > 0 then
m2 1 m3  m
which of the following statements is correct ? (a) (b) 
(a) r (x, y)  r (u, v) (b) r (x, y) > r (u, v) 12 12
(c) r (x, y) = r (u, v) (d) r (x, y) < r (u, v) 6m 3  m
7. In the method of rank correlation, in usual (c) (d) n(n 2  1)
12

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notations if Rx = Ry for each pair of observations

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Ans. 1 (a) 2 (c) 3 (d) 4 (b) 5 (b)
then what is the value of the r ?

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6 (c) 7 (c) 8 (b) 9 (c) 10 (b)
(a) 0 (b) -1 (c) 1 (d) 0.1

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QUESTION NO. 5 & 6

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Chapter - 3 : Linear Regression
1. Which of the following indicates the functional 6. The regression line of Y on X is ŷ = 30 - 1.5x. What

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relation between the two variables ? is the value of y if x = 10 ?

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(a) Correlation (b) Regression (a) 28.5 (b) 20 (c) 15 (d) 45

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(c) Mean (d) Variance 7. What is the coefficient of determination in the study
2. The best fitted line of regression can be obtained
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of regression for two variables ?
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by which method ? (a) Product of two standard deviations
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(a) Least Square Method (b) Square of correlation coefficient

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(b) Karl Pearson’s Method (c) Square of covariances

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(c) Maximum Square Method (d) Product of two variances

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(d) Bowley’s Method 8. If r = 0.8, how much part of the total variation in the
3. In usual notation, what is byx ?
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dependent variable can be explained by the

(a) Intercept regression model ?
..
..

(b) Dependent Variable (a) 80 % (b) 64 % (c) 36 % (d) 20 %

..

(c) The approximate change in the value of Y for a

..

unit change in the value of X. x  15 y  50

9. If u = and v = and byx = 7.5, what
..

10 2
..

(d) The approximate change in the value of X for a

..

unit change in the value of Y. is the value of bvu ?

..

4. The regression line always passes through which

..

(a) 7.5 (b) 1.5 (c) 37.5 (d) 150

..

point ? 10. For which value of the correlation coeffiecient (r),

..

(a) ( x , y ) (b) (0, y ) (c) ( x ,0) (d) (0,0) the regression coefficient becomes zero ?
..
..

5. What is the value of byx if the regression line is (a) 1 (b) -1 (c) 1/2 (d) 0
..

Ans. 1 (b) 2 (a) 3 (c) 4 (a) 5 (c)

..

2x + 3y - 50 = 0 ?
6 (c) 7 (b) 8 (b) 9 (c) 10 (d)
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(a) 3/2 (b) - 3/2 (c) - 2/3 (d) 2

QUESTION NO. 7 & 8
Chapter - 4 : Time Series
1. State the independent variable of time series. 2. How do you show the additive model of the time series ?
(a) yt (b) St (a) yt = Tt + St + Ct - Rt (b) yt = Tt + St + Ct + Rt
(c) t (d) xt (c) yt = Tt  St + Ct  Rt (d) yt = St + Ct + Rt
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 12th Commerce / Statistics
3. Name the method for fitting the linear equation to 8. Which of the following fluctuations is the effect of
find linear trend. seasonal component ?
(a) Graphical Method (a) Increase in the migration to cities from rural
(b) Method of least squares areas.
(c) Method of moving average (b) Increasing number of vehicles on roads in a city.
(d) Method of partial average (c) Increase in the number of tourists during school
4. The trend equation obtained from a time series from vacation.
January 2016 to December 2016 is ŷ = 30.1 + 1.5t. (d) Increased death rate during a certain epidemic
Find the value of trend for April 2016. 9. Which of the following variations are due to
(a) 30.1 (b) 34.6 (c) 36.1 (d) 33.1 cyclical component ?
5. Which method of finding trend is best to eliminate (a) Rise in demand during winter.
the effect of repetitive short - term variation ? (b) Decrease in the share prices due the recession
(a) Graphical method in share market.
(b) Method of least squares (c) Decrease in the agricultural produce due to
(c) Karl Pearson’s method excessive rains.

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(d) Method of moving average (d) Continuously decreasing the death rate.

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6. Which type of variations are produced in the time 10. Which component of the time series is impossible
series variable due to seasonal component ? to predict ?

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(a) Long-term (b) Irregular (a) Random component

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(c) Regular (d) Zero (b) Trend

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7. Which variation is shown in ‘decrease in the (c) Seasonal component
production of a company’ due to strike ? (d) Cyclical component

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(a) Random (b) Trend Ans. 1 (c) 2 (b) 3 (b) 4 (c) 5 (d)

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(c) Seasonal (d) Cyclical 6 (c) 7 (a) 8 (c) 9 (b) 10 (a)

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QUESTION NO. 9 & 10 Ed
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Chapter - 1* : Probability
1. What is the value of P(A  A') for the events A and 6. Which random experiment from the following
of

A' ? random experiments has an infinite sample space ?

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(a) Throwing two dice

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(a) 1 (b) 0
(b) Selecting two employees from an office
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(c) 0.5 (d) between 0 and 1

2. Which event is given by a special subset  of the (c) To measure the life of electric bulb
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sample space U ? (d) Select a card from 52 cards.

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(a) Certain event 7. If P(A/B) = P(A) and P(B/A) = P(B) then what type
..
..

(b) Complementary event of  of events are A and B ?

..

(c) Union of events U and  (a) Independent events

..

(d) Impossible event (b) Complementary events

..
..

3. Which of the following options is not true for any (c) Certain events
..

two events A and B in the sample space U where (d) Impossible events
..

AB ? 8. For two events A and B of a sample space, state

..
..

(a) P(A  B) = P(B) (b) P(A  B) = P(A) the event (A  B)  (A  B').

..

(c) P(A  B)  P(A) (d) P(B- A) = P(B) - P(A) (a)  (b) B (c) A (d) U
..

4. According to the mathematical definition of 9. What is the probability of having 5 Thursdays in the
..
..

probability, what is the probability of each outcome month of February in a year which is not a leap year ?
..

among the n outcomes of a random experiment ? (a) 0 (b) 1/7 (c) 2/7 (d) 3/7
(a) 0 (b) 1/n (c) 1 (d) can not say. 10. If one number is randomly selected between 1
5. What is the total number of sample points in the and 20, what is the probability that the number is a
sample space frormed by throwing three six-faced multiple of 5 ?
balanced dice simultaneously ? (a) 1/2 (b) 1/6 (c) 1/5 (d) 1/3
(a) 62 (b) 36 (c) 63 (d) 63 Ans. 1 (b) 2 (d) 3 (a) 4 (b) 5 (d)
6 (c) 7 (a) 8 (c) 9 (a) 10 (b)
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 Important Theory for all Sections

QUESTION NO. 11, 12 & 13

Chapter - 2* : Random Variable and Discrete Probability Distribution
1. Which variable of the following will be an illustration 6. For the probability distribution of a discrete random
of discrete variable ? variable, E(x) = 5 and E(x2) = 35. What will be the
(a) Height of a student variance of this distribution ?
(b) Weight of a student (a) 40 (b) 30 (c) 20 (d) 10
(c) Blood pressure of a student 7. For a positively skewed binomial distribution with
(d) Birth year of a student. n = 10, which of the following values might be the
2. Which variable of the following will be an illustration value of mean ?
of continous variable? (a) 5 (b) 3 (c) 9 (d) 7
(a) Number of accidents occuring at any place 8. For which value of x, the value of p(x) of binomial
(b) Number of rainy days during a year distribution with parameters n = 4 and p = 1/2
(c) Maximum temperature during a day becomes maximum ?

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(d) Number of children in a family. (a) 0 (b) 2 (c) 3 (d) 4

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3. A random variable X assume the values -1, 0 and 9. The binomial distribution has mean 5 and variance

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1 with respective probability 1/5, K and 1/3, where 10
/7. What will be the type of this distribution ?

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0 < K < 1 and X does not assume any value other (a) Positively skewed
than these values. What will be the value of E(x) ? (b) Negatively skewed

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(a) 2/5 (b) 3/5 (c) 2/15 (d) 3/15 (c) Symmetric

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4. A random variable X assumes the values - 2, 0 (d) Nothing can be said about the distribution.
and 2 only with respective probabilties 1/5, 3/5 and

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10. Which of the following is the formula of probability
K. If 0 < K < 1, what will be the value of K ?

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of an event of not getting success in the binomial
(a) 1/5 (b) 4/5 (c) 2/5 (d) 3/5

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distribution with parameters n and p ?
5. Mean and variance of a discrete probability
(a) nC0 pn q0
uc (b) nC0 p0 qn
distribution are 3 and 7 respectively. What will be
(c) C0 p q
n n
(d) nC0 pn q
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E(x2) for this distribution ?
Ans. 1 (d) 2 (c) 3 (c) 4 (a) 5 (d)
of

(a) 10 (b) 4 (c) 40 (d) 16

6 (d) 7 (b) 8 (b) 9 (b) 10 (b)
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QUESTION NO. 14 & 15

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Chapter - 3* : Normal Distribution

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1. Which of the following is probability density 3. Which of the following is probability density
..

function for normal variable X with mean  and function for standard normal variable?
..
..

standard deviation  ? 1
 z2
..

(a) f(z) = e 2 ; - < z <

..

1  x  
1   
..

2  
(a) f(x) = e ; - < x < 1 1
 z2
 2 e 2 ; - < z < 
..

(b) f(z) =
2
..
..

2
 x  
1  
..

1
(b) f(x) = e   
; - < x < 1  z2
e 2 ; 0 < x < 
..

 2 (c) f(z) =
2
..
..

2
1  x  
1
..

1  
 
 2
 ez ; -  < z < 
(c) f(x) =  e 2 ; - < x < (d) f(z) =
..

 2 2
..

2
4. Which of the following are mean and variance of
1  x  
1    standard normal variable?
(d) f(x) =  e 2   ; 0  x < 
 2 (a) Mean = 0, Variance = 1
(b) Mean = 1, Variance = 0
2. What is the area under the curve to right hand side
(c) Mean = 0, Variance = 0
of perpendicular line at X =  ?
(d) Mean = 1, Variance = 1
(a) 0 (b) 0.5 (c) 1 (d) - 0.5
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 12th Commerce / Statistics
5. In normal distribution, usually which limits include 8. In which interval does 95% observations of normal
99% of the observations ? distribution lie ?
(a)   1.96  (b)   2  (a)  ± 1.96 (b)  ± 2
(c)   3  (d)   2.575  (c)  ± 1.96 (d)  ± 2.56
6. Mean of a normal variable X is 50. If the value of Z 9. Which of the following is approximate value of
- score is - 2.5 for x = 25 then which of the following mean deviation for normal variable?
is a variance of the distribution? (a) 4/5  (b) 4/5  (c) 2/3  (d) 2/3 
(a) 10 (b) 100 (c) 50 (d) 25 10. Which of the following is approximate value of
7. If the distribution of normal variable is shown as quartile deviation for standard normal variable ?
N(20,4) then which of the following intervals (a) 2/3  (b) 2/3 (c) 4/5  (d) 4/5
includes 99.73% of observations ? Ans. 1 (c) 2 (b) 3 (b) 4 (a) 5 (d)
(a) (18,22) (b) (16,24) (c) (14,26) (d) (12,28) 6 (b) 7 (c) 8 (a) 9 (b) 10 (a)

QUESTION NO. 16

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Chapter - 3* : Normal Distribution

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1. For a normal variable X with mean  and standard 5. In usual notation of normal distribution, x = 25,
deviation  , which of the following is standard  = 20 and  = 5 then which of the following is

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normal variable Z for it ? the value of standard normal variable?

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x  x (a) 1 (b) -1 (c) 4 (d) 10/3

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(a) Z = (b) Z = 6. The parameters of a normal distribution are :
 
(a) x and  (b)  and e

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x x  (c) x and  (d)  and 

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(c) Z = (d) Z = 7. The range of normal random variable is :
 

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2. What is the total area under normal curve among (a) (- , ) (b) (- 1, 1)
the following ?
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(c) {0, 1, 2,...., n} (d) {0, 1}
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(a) -1 (b) 0 (c) 1 (d) 0.5 8. The skewness of normal distribution is :
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3. In normal distribution, usually what percentage of (a) infinite (b) positive(c) negative(d) zero
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the observations are included in the limits    ? 9. The variance of standard normal distribution is :
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(a) 34.13% (b) 95.45% (a) 0 (b) - 1 (c) 1 (d) 2

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(c) 68.26% (d) 50% 10. The approximate value of Q 3 for a normal
distribution with parameter  and  is :
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4. Mean and the first quartile for a normal distribution

(a) - 0.675 (b) 0.675
..

are 11 and 3 respectively. Which of the following

(c)  + 0.675 (d)  - 0.675
..

is the value of the third quartile?

..

(a) 8 (b) 14 Ans. 1 (d) 2 (c) 3 (c) 4 (c) 5 (a)

..

6 (d) 7 (a) 8 (d) 9 (c) 10 (c)

..

(c) 19 (d) 10
..

QUESTION NO. 17 & 18

..
..

Chapter - 4* : Limit
..
..

1. What is the modulus form of 0.3 neighbourhood 4. What is the interval form of |x - 5| < 0.25?
..

of 3 ?
..

(a) (4.75,5.25) (b) (-4.75,5.25)

..

(a) |x - 0.3| < 3 (b) |x - 3| < 0.3 (c) (-5.25,-4.75) (d) (-5.25,4.75)
..

(c) |x + 3| < 0.3 (d) |x - 3| > 0.3

..

2. What is the modulus form of N(5,0.02) ? 5. What is the value of lim 4x  9 ?

..

x4

(a) |x + 5| < 0.02 (b) |x - 0.02| < 5 (a) 5 (b) 25 (c) 7/4 (d) 7
(c) |x - 5| > 0.02 (d) |x - 5| < 0.02
x 4  81
3. If modulus form of N(a,0.07) is |x - 10| < k then 6. What is the value of lim ?
x 3 x 3
what will be the value of k ?
(a) 192 (b) 324 (c) 36 (d) 108
(a) a (b) 0.7 (c) 0.07 (d) 9.93

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 Important Theory for all Sections
1 9. If y = 10 - 3x and x  - 3 then y tends to which
7. What is the interval form of |2x + 1| < ? value ?
5
(a) 1 (b) 9 (c) 19 (d) 7
6 4 6 4
(a) (- ,- ) (b) (- ,- ) x5  1
5 5 10 10 10. What is the value of lim x  1 ?
x  1
4 6 6 4 (a) -5 (b) 5 (c) 4 (d) - 4
(c) ( , ) (d) (- , )
10 10 10 10 Ans. 1 (b) 2 (d) 3 (c) 4 (a) 5 (a)
8. What is the value of lim 10? 6 (d) 7 (b) 8 (a) 9 (c) 10 (b)
x  2

(a) 10 (b) -2 (c) 8 (d) Indeterminate

QUESTION NO. 19 & 20

Chapter - 5* : Differentiation

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1. What is the formula for derivative of function f(x) ? 6. If u and v are functions of x then what is the

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f ( x  h)  f ( x) u

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(a) lim formula for derivative of ?
h x
h v

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f ( x  h)  f ( x) du dv du dv

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(b) lim v u v u
h0
h (a) dx dx (b) dx dx

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2 2
f ( x  h)  f ( x) v v
(c) lim

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h0
h dv du dv du

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u v u v
f ( x )  f ( x  h) (c) dx dx (d) dx dx

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(d) lim u2 u2
h x
h uc
7. If the function f(x) is increasing at x = a then which is
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2. What is if y = ax n , a is a constant? the correct option from the following ?
of

dx (a) f '(a) < 0 (b) f '(a) > 0

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(a) nx n 1 (b) anx n 1 (c) f '(a) = 0 (d) f ''(a) > 0

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(c) 0 (d) anx n 1 8. What are the necessary and sufficient conditions
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for a function to be minimum at x = a ?

3. If y = ax  b , a and b are constants then what will
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(a) f '(a) = 0, f ''(a) < 0 (b) f '(a) > 0, f ''(a) > 0

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dy (c) f '(a) = 0, f ''(a) > 0 (d) f '(a) < 0, f ''(a) > 0

..

be ?
dx 9. What is the formula for elasticity of demand ?
..
..

(a) a (b) b (c) a + b (d) 0 p dx p dx

(a)   
..

(b)
x dp x dp
..

4
4. What is the derivative of f(x) = ?
..

x2
..

x dp p dp
(c)   (d)  
..

4 8 p dx x dx
..

(a) (b) 
x3
..

2x 10. What are the conditions for the revenue function R

..

8 to be maximum?
..

(c) (d) 0
..

x3 dR d 2R dR d 2R
..

5. If u and v are two functions of x then what is the (a) = 0, < 0 (b) = 0, >0
..

dx dx 2 dx dx 2
formula of derivative of their product ?
dR d 2R dR d 2R
du dv dv du (c) > 0, < 0 (d) > 0, >0
(a) u v (b) u  v dx dx 2 dx dx 2
dx dx dx dx
Ans.
du dv dv du 1 (c) 2 (b) 3 (a) 4 (b) 5 (d)
(c)  (d) u v
dx dx dx dx 6 (a) 7 (b) 8 (c) 9 (a) 10 (a)

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 12th Commerce / Statistics
* indicates Chapters of Part - 2
SECTION Type of Questions : VSQs Question Numbers : 21 to 30
Chapters Covered : All Marks of each question : 1

B Question No. :
Chapter No. :
Total Marks of the Section :
21 22 23 24 25 26 27 28 29 30
1 2 3 4 1* 2* 3* 3* 4* 5*
10

QUESTION NO. 21
Chapter - 1 : Index Number
1. Which method is more suitable to compare the previous period of the current period, therefore base
changes in a variable at two different time period keeps on changing for each current period.
periods ? 6. How should be the base year in the calculation
A Method of relative changes is more suitable to of index number ?

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compare the changes in a variable at two different A Base year should be the normal year of recent

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time periods. past in calculation of index number.

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2. What is a price relative ? 7. In which method does the base year change each

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A The ratio p /p is called the price relative of an item.
1
0
year ?
Where : p1 = Price of an item for current period A In chain base index base year changes every year.

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& p0 = Price of an item for base period 8. If the quantity index number of an item for a

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3. Define the index number. certain year is 130, interpret it.
A The percentage change in the value of a variable A The quantity consumption is increased by 30% in

al
on
associated with any item for the given (current) current period in comparison of base period.
period compared to its value in a fixed (base) 9. Which index number is used to find the rate of

ati
period is called an index number. inflation ? Write the formula to find the rate of inflation.
uc
4. What is a base year ? A Using Wholesale Price Index, the rate of inflation
Ed
A The time period (year) with whose value of the can be found as follows.
of

variable, the values of the variable of other periods Rate WPI of WPI of
= Current Year Previous Year] × 100
[ ] -[
er

are compared is known as Base period (year). of

sh

5. State the main difference between fixed base inflation WPI of Previous Year
b li

method and chain base method ? 10. Which index number is used in India to find the
Pu

A In fixed base method base period remains fixed rate of dearness allowance ?
for long period of time for each current period. In A Cost of living index number is used in India to find
..
..

chain base method, base period is taken as the the rate of dearness allowance.
..

QUESTION NO. 22
..
..
..

Chapter - 2 : Linear Correlation

..
..

1. Define correlation. 4. The age of an adult person and life insurance

..

A Correlation is a statistical measure which measures premium at the time taking an insurance under
..

degree or strength of association between two a plan. Which type of correlation is there ?
..
..

correlated variables. A There is positive correlation between given variables.

..

2. Define correlation coefficient. 5. The sales and profit of last five years for a mostly
..

A Correlation coefficient is a pure number indicating accepted product of a company. Which type of
..
..

nature of relationship and degree or strength of correlation is there ?

association between two correlated v a r i a b l e s A There is positive correlation between given
and does not have any unit of measurement. variables.
3. What is the main limitation of scatter diagram 6. Altitude and amount of Oxygen in air. Which type
method ? of correlation is there ?
A The main limitation of scatter diagram method is it A There is negative correlation between given
can not give exact value of correlation coefficient (r). variables.
Page... 7
 Important Theory for all Sections
7. The rate of inflation and the purchase power of
common man of a country when income of the
common man is stable. Which type of
correlation is there ?
A There is negative correlation between given
variables under given condition.
8. The correlation coefficient between X and Y is 0.4.
What will be the value of correlation coefficient if 5
is added in each observation of X and 10 is
substracted from each observation of Y ?
A The correlation coefficient between new variables
(X + 5) and (Y - 10) will be 0.4.
9. What can be said about the correlation between
the annual import of crude oil and the number
of marriages during the same time period ?
A The correlation between the annual import of crude
oil and the number of marriages during the same
time period is said to be “Spurious Correlation”.
10. If the value of n(n2 - 1)is six times the value of
d2 then what is the value of r ?
A The value of r in given situation will be 1.

QUESTION NO. 23
Chapter - 3 : Linear Regression

s
ial
1. Define : Regression Coefficient. 5. What is the value of error if a sample point is on
A For a regression equation Y = a + bX, constant ‘b’ the fitted line ?

ter
is the regression coefficient of regression equation A The value of error will be zero if a sample point is

Ma
Y on X and it is denoted by bYX. on the fitted line.

dy
2. State the Linear Regression model. 6. The regression coefficient is independent of
A Simple (bi-variate) linear regression model of the

Stu
which transformation ?
dependent variable Y is expressed in the form of A The regression coefficient is independent of

al
linear function of the independent variable X, can change of origin.

on
be given as follow. 7. The regression coefficient is not independent

ati
Y =  + X + u of which transformation ?
Where : Y = Dependent variable uc
A The regression coefficient is not independent of
Ed
X = Independent variable change of scale.
,  = Constants 8. If Y and X have the relation y = a + bx, where b > 0
of

u = Disturbance or error then what is the value of r ?

er

variable of the model A If Y and X have the relation y = a + bx, where b > 0,
sh

3. Give the name of a method to obtain the best then r = 1

b li

fitted regression line ? 9. If r = 0.5, s x = 2, s y = 4, what is the value of byx ?

Pu

A Method of least squares is a method to obtain the

..

A S 4
best fitted regression line. bYX = r . Y = 0.5 . = 1
..

4. What is an error in context with a regression line ? SX 2

..

10. If a regression line is ŷ = 31.5 + 1.85x, estimate

..

A The vertical distance (i.e. distance parallel to Y

..

axis) between observed value yi and estimated Y for X = 10.

..

value y^i is called error in context with regression A Estimation of Y when X = 10

..

^ Taking : ŷ = 31.5 + 1.85x = 31.5 + 1.85 (10) = 50

..

line Y on X i.e. Error : e = y - y.

..

QUESTION NO. 24
..
..
..

Chapter - 4 : Time Series

..

1. What is a time series ? 3. Which of the components of time series produce

..

A Time series is a set of observations taken at short-term variations ?

..
..

specified times, usually (but not always) at equal
intervals.
2. State the components of a time series.
A (1) Long term Component or Trend (Tt)
(2) Seasonal Component (St)
(3) Cyclical Component (Ct)
(4) Irregular or Random Component (Rt)
Page... 8
A Seasonal and Cyclical components of time series
produce short - term variations.
4. The effect of which component indicates
fluctuations repeating within one year ?
A The efffect of seasonal component indicates
fluctuations repeating within one year.

5. What is meant by analysis of time series ?
A Variation in the time series variable is caused by
so many factors.A study conducted to know the
extent of the effect of each of these factors on the time
series variable is called the analysis of time series.
6. Give an example of time series having
decreasing trend.
A Child mortality rate is the example of decreasing
trend in time series.
7. State the names of methods of measuring trend.
A (1) Graphical Method
(2) Method of least squares
(3) Moving average method
8. What is the notation to show the cyclical
component of the time series ?
12th Commerce / Statistics
9. The linear equation fitted using the data of 7
weeks for a variable y is ŷ = 25.1 - 1.3t. Estimate
the value of y for the eighth week.
A Taking t = 8, ŷ = 25.1 - 1.3(8) = 14.7
10. When is the method of moving average more
useful to find trend ?
A Method of moving average is useful in following
situations.
(1) If trend is linear or approximately linear.
(2) The oscillatory movements describing the
given time series are regular both in period
and amplitude.
(3) If forecasting is not required.

s
ial
A Cyclical component of the time series is denoted by Ct.

ter
QUESTION NO. 25

Ma
Chapter - 1* : Probability

dy
1. Write the law of multiplication of probability for 6. If P(A) = P(B) = K for two mutually exclusive

Stu
two independent events A and B in a sample space. events A and B, find P(A B).
A P(A B) = P(A) . (B)

al
A Given : A and B are mutually exclusive.

on
2. When can we say that three events A, B and C in P(A) = P(B) = k

ati
a sample space are exhaustive ? Required :
A When A B C = U, we can say that three
events A, B and C are exhaustive.
uc
P(A B) = P(A) + P(B) = k + k = 2k
Ed
7. Arrange P(A  B), P(A), P(A  B), 0, P(A) + P(B)
3. For the two independent events A and B, P(B/A) in the ascending order.
of

= 1/2 and P(A  B) = 1/5. Find P(A). A Arranging probabilities of given events in
er

A Given : A and B are independent, ascending order..

sh

P(B/A) = 1/2 i.e. P(B) = 1/2 and P(A  B) = 1/5 0, P(A B), P(A), P(A B) and P(A) + P(B)
b li

Required : Value of P(A) 8. If A = {x | 0 < x < 1} and B = {x | 1/4  x  3} then

Pu

As events are independent, find A  B.

..

P(A  B) = P(A) . P(B) A If A = {x | 0 < x < 1} and B = {x | 1/4  x  3} then

..

 1/5 x 2/1 = P(A)

..

A B = {x | 1/4  x < 1}
 1/5
..

= P(A) x 1/2 9. For two independent events A and B, P(A) = 0.5

..

 P(A) = 2/5 and P(B) = 0.7. Find P(A'  B').

..

4. State the number of sample points in the random

..

A Given : A and B are independent events,

..

experiment of tossing five balanced coins. P(A) = 0.5 i.e. P(A') = 0.5
..

A Number of sample points in the random P(B) = 0.7 i.e. P(B') = 0.3
..

experiment of tossing five balanced coins,

..

Required : Value of P(A'  B')

..

n(U) = 25 = 32 P(A' B') = P(A') . P(B') = 0.5 x 0.3 = 0.15

..

5. State the number of sample points in the random 10. If P(A) = 0.8 and P(A  B) = 0.25, find P(A - B).
..

experiment of tossing one balanced coin and

..

A Given : P(A) = 0.8 and P(A  B) = 0.25

..

two balanced dice simultaneously. Required : Value of P(A - B)

A Number of sample points in the random P(A - B) = P(A) - P(A B)
experiment of tossing one balanced coin and two = 0.8 - 0.25
balanced dice simultaneously, = 0.55
n(U) = 21 x 62 = 72

Page... 9
 Important Theory for all Sections
QUESTION NO. 26
Chapter - 2* : Random Variable and Discrete Probability Distribution
1. Define discrete random variable.
A A random variable which can assume some fixed
values
(i) in R or
(ii) in subset of R (which may be an interval) is
called discrete random variable.
2. Define continuous random variable.
A A random variable which can assume
(i) any value in R or
(ii) any value in interval (a,b) of R is called
continuous random variable.
6. State the relation between the probability of
success and failure in Bernoulli trials.
A The relation between the probability of success and
failure in Bernoulli trials can be described as :
P(S) + P(F) = 1.
7. Mean of a symmetrical binomial distribution is
7. Find the value of its parameter n.
A Given : Binomial distribution is symmetrical
i.e. p = 1/2, Mean = 7
Required : Value of parameter n
Mean = 7  n(1/2) = 7

s
3. Define discrete probability distribution.  np = 7  n = 14

ial
A Suppose X is a discrete random variable which 8. The parameters of a binomial distribution are

ter
can assume values x 1, x 2, x 3,....x n of R with 10 and 2/5. Calculate its variance.

Ma
respective probabilities p(x1), p(x2).......... p(xn) A Given : for a binimial distribution, n = 10,
such that p = 2/5  q = 3/5

dy
(i) 0 < p(xi) < 1, i = 1, 2, 3, ...... n & Required : Variance

Stu
(ii) p(xi) = 1 Variance = npq = (10)(2/5)(3/5) = 2.4

al
then set of real values {p(x1), p(x2)..........p(xn)} is 9. State the relation between mean and variance

on
known as discrete probability distribution of of binomial distribution.

ati
random variable X. A In binomial distribution, Mean > Variance.
4. State the formula to find mean of discrete 10. The probability of failure in a binomial
uc
variable. distribution is 0.6 and the number of trials in it
Ed
A Mean of discrete variable : E(x) = x p(x) is 5. Find the probability of success.
of

5. State the formula to find variance of discrete A Given : For a binomial distribution, n = 5, q = 0.6
er

variable. Required : Probability of success

sh

A Variance of discrete variable : V(x) = E(x2) - [ E(x) ]2 p = 1 - q = 1 - 0.6 = 0.4

b li

QUESTION NO. 27
..
Pu

Chapter - 3* : Normal Distribution

..
..

1. Give the values of the constants used in 5. Mean of a normal distribution is 13.25 and its
..

probability density function of normal variable ? standard deviation is 10. Estimate the value of
..

A The values of the constants used in probability its third quartile.

..

density function of normal variable are  = 22/7 or A Given : For a normal distribution, Mean :  = 13.25,
..
..

3.1416 and e = 2.7183 S.D. :  = 10

..

2. What is the probability that a continuous random Required : Value of third quartile
..

variable takes definite value ? Q3 = 

..

+ 0.675
..

A The probability that a continuous random variable = 13.25 + 0.675 (10) = 20

..

takes definite value is zero (0). 6. For a normal distribution having mean 10 and
..

3. “Standard score is independent of unit of

..

standard deviation 6, estimate the value of

..

measurement”. Is this statement true or false ? quartile deviation.

A “Standard score is independent of unit of A Given : For a normal distribution, Mean :  = 10,
measurement” is a true statement. S.D. :  = 6
4. What percentage of area is covered under the Required : Value of quartile deviation
normal curve within the range  -2  to  +2  ? Quartile Deviation = 2/3 
A 95.45% of area is covered under the normal curve = 2/3 (6)
within the range  -2  to  +2  = 4
Page... 10
 12th Commerce / Statistics
7. The approximate value of mean deviation for a A Given :
normal distribution is 8. Find its standard For a normal variate, Mean :  = ?,
deviation. Variance : 2 = 100 i.e.  = 10, Z = 1 for X = 60
A Given : For a normal distribution, M.D. : 4/5  = 8 Required :
Required : Value of standard deviation Mean
Standard Deviation = 5/4 (M.D.) = 5/4 (8) = 10 x-  10 = 60 - 
z =
8. The exteme quartiles of normal distribution are    = 60
20 and 30. Find its mean. 60 - 
A Given : For a normal distribution, Q1 = 20 and  1 = 10

Q3 = 30 10. The monthly expense of a group of persons
Required : Mean follows normal distribution with mean ˆ10,000
Mean :  = Q3 + Q1 = 30 + 20 = 25 and standard deviation ˆ1000. A student has
2 2 obtained a Z - score = ˆ1 for randomly selected
9. Marks obtained by students of a school in person having monthly expense more than

s
Economics subject follows normal distribution ˆ11,000. Is this calculation of Z-score true ? Give

ial
with mean  and standard deviation . The value reason.

ter
of standard score that a randomly selected A As we know, Z - score is free from unit of

Ma
student obtained 60 marks is 1. If the variance of measurement, Z - score = ˆ1 is not true.
variables is 100 (marks)2 then find average marks.

dy
QUESTION NO. 28

Stu
Chapter - 3* : Normal Distribution

al
on
1. What is the shape of normal curve ? 8. The age of a group of persons follows normal

ati
A A normal curve is perfect bell shaped curve. distribution with mean 45 years and standard
2. Which value of normal variable divides the area uc
deviation 10 years. Calculate Z-score for a
Ed
of normal curve in two equal parts? randomly selected person having age 60 years.
A The normal variable X =  (Mean) divides the area
of

A Given : For a normal distribution,

of normal curve in two equal parts Mean :  = 45, S.D. :  = 10, X = 60
er
sh

3. For which value of standard normal variable, Required :

b li

the standard normal curve is symmetric on both Z - score

the sides ? x- 60 - 45
Pu

z = = 10 = 1.5
A For standard normal variable Z = 0, the standard 
..

normal curve is symmetric on both the sides 9. Give one illustration each of discrete distribution
..
..

4. What is the area between a normal curve and X and of continuous distribution.
..

axis ? A Illustration of discrete distribution :

..

A Total area between a normal curve and X axis is 1. Distribution of getting number of heads when 5
..
..

5. What is the skewness of normal distribution ? coins are tossed together

..

A For normal distribution skewness is zero (0). Illustration of continuous distribution :

..

6. For probability distribution of standard normal

..

Distribution of a life of an electric bulb.

..

variable, state the estimated limits for the middle 10. What is a standard normal variate ?
..

50% observations. A If x is a Normal variate with Mean =  and

..

A For a standard normal distribution limit of middle S.D. = then Standard Normal variate (z) is given
..
..

50% observations is : Q1 toQ3 i.e. - 0.675 to 0.675 by

..

7. For a normal distribution, the estimated value x-

z =
of quartile deviation is 12. Find the value of its 
standard deviation. Standard Normal variate (z) also obeys Normal
A Given : For a normal distribution, Q.D. : 2/3  = 12 Distribution with Mean = 0 and S.D. = 1
Required : Value of standard deviation
Standard Deviation = 3/2 (Q.D.) = 3/2 (12) = 18

Page... 11
 Important Theory for all Sections
QUESTION NO. 29
Chapter - 4* : Limit
1. Express 0.09 neighbourhood of 0 in interval x 5  32
form. A lim
x2 x2
A N (0, 0.09) = (0 - 0.09, 0 + 0.09) = (- 0.09, 0.09) lim x5 - 25
2. Express 0.001 neighbourhood of -5 in modulus =
x2 x - 2
form. = 5 (2)5 - 1 = 80
A N (- 5, 0.001) = |x - (- 5)| < 0.001 = |x + 5| < 0.001
3. Express |2x| < 1/2 in interval form. xm  am
8. Find the value of lim where m is an
A |2x| < 1/2 = (-1/4, 1/4) x a xa
4. If |x + 4| < 0.04 = (k, -3.96) then find the value of k. odd number.
A Given : |x + 4| < 0.04 = (k, -3.96)
Working : xm  am
A lim

s
Since, |x + 4| < 0.04 = (k, - 3.96) x a xa

ial
a = - 4,  = 0.04, a -  = k and a +  = - 3.96 lim xm - (-a)m

ter
=
Required : Value of k x-a x - (-a)

Ma
k = a -  = - 4 - 0.04 = - 4.04 = m (a)m - 1

dy
5. Find the value of lim 3
2  2x . 9. If lim 4x + k = 6 then find the value of k.
x  3 x  1

Stu
A lim 3
2  2x A lim 4x + k = 6
x  3 x  1

al
= 3
_2 - 2(-3)  4(-1) + k = 6

on
= 3
8  -4+k = 6

ati
= 2  k = 10
uc
2 1
Ed
 3x 2  4 x  10  10. If lim = then find the value of k.
6. Find the value of lim  . 3x  k 7
2 x  5 
x 3
of

x0 

2 1
er

 3x  4 x  10 
2 A lim =
sh

x 3 3 x  k 7
A lim  
2 x  5 
b li

x0 
 2 . = 1
Pu

3(0)2 - 4(0)2 + 10 3 (3) + k 7

= = 10 = 2 2 . = 1
..

2(0) + 5 5 
..

9+k 7
..

x 5  32  9+k = 14
..

7. Find the value of lim .

x2  k = 5
..

x2
..
..

QUESTION NO. 30
..
..
..

Chapter - 5* : Differentiation
..

1. Define differentiation. 4. How will be the first order derivative of a function

..
..

A The process of obtaining derivative of a function at x = a if function is decreasing at x = a ?

..

is called differentiation. A If the function f(x) is decreasing at x = a then the

..

first order derivative of a function at x = a is negative

..

2. Find f '(x) if f(x) = 7 x 2  6 x  5 .

A f(x) = 7x2 - 6x + 5 then f '(x) = 14x - 6 i.e. f '(a) < 0.
3. State the rule for derivative of product of two 5. How will be the second order derivative of a
functions of x. function at x = a if function is maximum at x = a ?
A If the function f(x) is maximum at x = a, the second
dy du dv order derivative of a function at x = a is negative.
A If y = u.v then  v u
dx dx dx i.e. f ''(a) < 0

Page... 12
 12th Commerce / Statistics
6. What are the stationary points of a function ? 9. State the formula of elasticity of demand.
A The points at which maximum or minimum values A Price Elasticity of demand :
of a function occur are known as stationary points. Ep = - % change in demand = - p . dx
7. What is marginal revenue ? % change in price x dp
A The change in revenue due to small change in dy 7 2 6
if y = 6 x  x  x  8 .
3
quantity demanded is called marginal revenue. 10. Find
dx 2 5
8. Define marginal cost.
A The change in cost due to small change in quantity 7 6
A y  6 x3  x2  x  8
produced is called marginal cost. 2 5
dy 6
then  18 x 2  7 x 
dx 5

s
ial
ter
Ma
dy
Stu
al
on
ati
uc
Ed
of
er
sh
b li
Pu
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..

Page... 13
 Important Theory for all Sections
* indicates Chapters of Part - 2
SECTION Type of Questions : SQs Question Numbers : 31 to 39
Chapters Covered : 1, 2, 3, 4, Marks of each question : 2

C
1*,2*,4*,5* Total Marks of the Section : 14
Question No. : 31 32 33 34 35 36 37 38 39
Chapter No. : 1 2 3 4 1* 2* 4* 4* 5*

QUESTION NO. 34
Chapter - 4 : Time Series
1. Define time series.
A The set or collection of values of a variable quantity associated with any phenomena or event, obtained at
different points of time is called a time - series.
Time series is a set of observations taken at specified times, usually (but not always) at equal intervals.

s
Thus a set of data depending on time ( which may be a year, quarter, month, week, days, etc.) arranged in

ial
chronological order is called a time series,

ter
e.g. 1. Export values of India over last 10 years.

Ma
2. Monthly production of a factory over last 12 months.
3. Daily sales of petrol pump over last 30 days.

dy
2. Describe the additive model of time series.

Stu
A As we know, time series varible is affected by so many factors. There is a composite (combined) effect of

al
many factors on time series data which bring variations in the variable. These different factors, mainly be

on
classified in four catagories. These four catagories are known as components of time series.

ati
Main components of time series are ...
1. Long term Component or Trend (Tt) 2. Seasonal Component (St)
uc
3. Cyclical Component (Ct) 4. Irregular or Random Component (Rt)
Ed
As per additative model, any observation
of

yt = T t + S t + C t + R t
er

3. Describe the graphical method to measure trend.

sh

A In graphical method the time t is taken on X axis and the time dependent variable yt is taken on Y axis. The
b li

points are then plotted for pairs of values of t and yt. Joining these points in order by line segments the graph
Pu

obtained is called the graph of the given time series. This graph is generally irregular and haphazard like the
..

graph of temperature of a patient. If a smooth free hand curve is drawn passing approximately from all these
..

points or as near to all points possible then it will reveal the general tendency of the series i.e. trend.
..

4. State the limitations of graphical method.

..
..

A (1) The method is subjective in nature. Different persons will give different curves for the same data.
..

(2) This method is not reliable for accurate predictions.

..
..

5. Explain the meaning of moving average.

..

A Method of moving averages is very simple and flexible method of measuring trend. It consists in obtaining
..

a series of moving averages of successive overlapping groups or sections of time series. The averaging
..
..

process smoothens out the fluctuations and ups & downs in the given data. The moving average is
..

characterised by a constant known as ‘period’ or ‘extent’ of the moving average. Thus the moving average
..

of period ‘m’ is a series of successive averages of ‘m’ overlapping values at a time starting with 1st, 2nd,
..
..

3rd values and so on. Thus for the time series values y1, y2, y3, y4, ...... for different time periods, the
moving average values of period ‘m’ are given by :
1st Moving Average : y1 + y2 + ..... + ym
m
2nd Moving Average : y2 + y3 + ..... + ym + 1
m

Page... 14
 12th Commerce / Statistics
3rd Moving Average : y3 + y4 + ..... + ym + 2
m
.
.
and so on.
6. State the merits of the method of moving average to measure trend.
A (1) This method does not require any mathematical complexities and is quite simple to understand.
(2) The effect of short term component is eliminated to a large extent using the averages and trend of the
series is obtained.
(3) Unlike the method of trend fitting by the principle of least squares, the moving average method is quite
flexible in the sense that a few more observations may be added to the given data. This would not affect
the trend values already obtained, it will simply result in somemore trend values at the end.
(4) In addition to the measurement of trend, this method is also used in measuring seasonal, cyclical and

s
irregular fluctuations.

ial
7. What is meant by cyclical component ?

ter
A Cyclical fluctuations are due to business cycles or trade cycles found in every business and economy.

Ma
Cyclical fluctuation is a long term periodic movement which occurs over a long period of time. The period
of oscillation of these variation can be 2 to 10 years and in some cases it may prolong to 10 to 15 years.

dy
This component is considered as short term component because interval of variation in this component is

Stu
less than the time of the entire series. These fluctuations are also regular fluctuations but not as regular as

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seasonal fluctuations.

on
Such business cycle involves four phases.

ati
(i) Prosperity or Boom. (ii) Recession (iii) Depression (iv) Recovery
These variations are found in the time series of trade and finmancial matteres like production, price of an
uc
item, price of shares in share market, investments etc.
Ed
8. How does seasonal component differ from the cyclical component ?
of

A Seasonal Component Cyclical Component

er

Seasonal variations are short term periodic Cyclical fluctuations are due to business cycles or
sh

movements which occurs more or less very trade cycles found in every business and economy
b li

regularly within a specified period of 1 year having periodic movement of more than 1 year.
Pu

or less.
..

The period of oscillation for seasonal The period of oscillation of cyclical component can
..

component is 1 year or less. be 2 to 10 years and in some cases it may prolong to

..

10 to 15 years.
..
..

Such variations are due to recurring events Changes occur in the economy due to boom and
..

which take place annually. e.g. Increase in recession is example of cyclical component.
..

sales during Diwali season.

..
..

Seasonal components are denoted by St. Cyclical components are denoted by Ct.
..

9. Explain the irregular component.

..
..

A Irregular or random fluctuations are sudden in nature and are caused by man made or natural calamities
..

like war, coup, political disturbances, floods, famines, earthquakes etc.

..
..

The time interval and effect of this variation is not certain. The variation which cannot be attibutable to any
..

one of the trend, seasonal or cyclical component, is due to irregualr or random component. As irregular
fluctuations are due to unforeseen causes their effect on business cannot be predicted. It does repeat
regularly but cannot be controlled.
10. What is meant by random component in a time series ? How will you obtain random components ?
A Variation in time series variable due to sudden and unexpected factors like war, coup, political disturbances,
floods, famines, earthquakes etc, which are uncontrollable is random component of time series.
Random components can be obtained as : Rt = yt - (Tt + St + Ct )
Page... 15
 Important Theory for all Sections

QUESTION NO. 38
Chapter - 4* Limit
1. Define an open interval.
A If a  R, b  R and a < b then -
Set of all real numbers between ‘a’ and ‘b’, excluding ‘a’ and ‘b’ is called an open interval. It is denoted by
(a,b).
And it is given by : (a,b) = {x | a < x < b, x  R}
2. Define  neighbourhood of ‘a’.
A If a  R and  is non-negative real number then open interval (a - , a + ) is called  neighbourhood of ‘a’. It
is denoted by : N (a, )
N (a, ) = {x | a -  < x < a + , x  R}
= {x | |x - a| < , x  R}
 neighbourhood of ‘a’ can be expressed in different ways like :

s
ial
(i) Neighbourhood form : N (a, )
(ii) Modulus form : |x - a| < 

ter
(iii) Interval form : (a - , a + )

Ma
3. Define punctured  neighbourhood of ‘a’.
A If a  R and  is non-negative real number then open interval (a - , a + ) - {a} is called punctured 

dy
neighbourhood of ‘a’. It is denoted by : N* (a, )

Stu
N* (a, ) = N (a, ) - {a}

al
= {x | a -  < x < a + , x  a, x  R}

on
= {x | |x - a| < , x  a, x  R}

ati
4. Explain the meaning of x  a.
uc
A When value of x approaches to ‘a’ from either side but it never becomes exact ‘a’ (though it is approximately
Ed
a only), it is called x tends to ‘a’. Symbolically it is written as x  a.
e.g. Taking a = 1, we can understand meaning of x  1 with the help of fillowing figure :
of

x tends to 1 from left hand side x tends to 1 from right hand side
er


sh

Values of x
b li

0.9 0.99 0.999 0.9999 1 1.0001 1.001 1.01 1.1

Pu

x < 1 (x increases towards 1)  x > 1 (x decreases towards 1)

..

5. Explain the meaning of x  0.

..

A When value of x approaches to 0 from either side but it never becomes exact 0 (though it is approximately
..
..

0 only), it is called x tends to zero. Symbolically it is written as x  0.

..

e.g. Let us understand meaning of x  0 with the help of fillowing figure :

..
..

x tends to 0 from left hand side x tends to 0 from right hand side
..

Values of x 
..
..

- 0.1 - 0.01 - 0.001 - 0.0001 0 0.0001 0.001 0.01 0.1

..
..

x < 0 (x increases towards 0)  x > 0 (x decreases towards 0)

..

6. Define limit of a function.

..
..

A Let f(x) is a real function of variable x. ‘a’ is a constant number and ‘m’ is a fixed number.
..

If by taking valuesof a variable x by increasing or decreasing to ‘a’ then the values of f(x) goes near and
near to a fixed number ‘m’. So it can be said that when x tends to ‘a’ then f(x) tends to ‘m’.
Symbolically,
lim f(x) = m
xa
i.e. As x approaches to given value ‘a’, f(x) approaches to m.
i.e. m is the limiting value of f(x) when x  a.
Page... 16
 12th Commerce / Statistics
7. State multiplication working rule of limit.
A Let f(x) and g(x) be some real functions of real variable x and k be any constant.
Also lim f(x) = m and lim g(x) = n, then ---
xa xa
lim f(x) . g(x) lim f(x) . lim g(x)
xa [ ] =
xa xa
= m.n
8. State division working rule of limit.
A Let f(x) and g(x) be some real functions of real variable x and k be any constant.
Also lim f(x) = m and lim g(x) = n, then ---
xa xa
lim f(x). = lim f(x) lim g(x) = m (n  0)
xa g(x) xa xa n
9. State the standard form of limit of a polynomial.
A Let f(x) = a0 + a1x + a2x2 + a3x3 + ...... + anxn then using the working rules of limit, standard form of limit of

s
polynomial is :

ial
lim f(x) = a + a b + a b2 + a b3 + ...... + a bn

ter
0 1 2 3 n
xb

Ma
10. What is modulus ?
A For x  R, |x| = Modulus of x

dy
= The distance of ‘x’ from ‘0’.

Stu
= x if x 0
= - x if x < 0

al
on
Modulus of any real number is always non-negative. e.g. |5| = 5; |-5| = 5; |0| = 0

QUESTION NO. 39
ati
Chapter - 5* Differentiation
uc
Ed
1. Define derivative.
of

A Let, f : A  R and a  A, where A is an open interval of R.

er

If lim f(a + h) - f(a) exists, then this limit of a function f is called derivative at x = a.
sh

h0 h
b li

It is denoted by f (a)
Pu

Thus, f (a) = lim f(a + h) - f(a) .

..

h0 h
..

For any value of x of the domain of f, we have -

..
..

f (x) = lim f(x + h) - f(x) .

..

h0 h
..

f (x) is called derivative of f(x) with respect to x.

..
..

2. State the division rule of derivative.

..

A Let u and v are the differentiable function of x.

..

If y = u , v  0 then as per division rule,

..
..

v
..

v du - u dv
..
..

dy = dx dx
..

dx v 2

3. State necessary and sufficient conditions for a function to be maximum at x = a.

A Consider y = f(x).
Conditions for a function to be maximum at x = a are :
(1) Necessary condition : f '(a) = 0 and (2) Sufficient condition : f ''(a) < 0

Page... 17
 Important Theory for all Sections
4. Explain marginal cost and give its formula.
A (a) Meaning of Marginal Cost :
The change in cost due to small change in quantity produced is called marginal cost.
(b) Mathematical fromulation :
Let, x = Quantity produced, C = Cost of production
As we know, C = f(x)
Marginal Cost can be obtained by taking the derivative of Cost function (C) with respect to x.
Thus, Marginal Cost : MC = dC
dx
5. Define elasticity of demand.
A As price of a commodity increases, the demand of that commodity decreases and vice-versa. Thus change
in price results in change in demand in opposite direction but these changes are not equal in all the cases.
For this we need to find the elasticity of demand in reference of price for different commodities.
Elasticity of demand is the ratio of percentage change in demand due to percentage change in price.

s
ial
Thus, Price Elasticity of demand : Ep = - % change in demand
% change in price

ter
Let, x = Quantity demanded, & p = Price of a commodity per unit

Ma
As we know, x = f(p)

dy
Price Elasticity of demand : Ep = - p . dx
x dp

Stu
6. What are the conditions for profit function P to be maximum ?

al
A As we know, Profit = Revenue - Cost i.e. P = R - C

on
Conditions for a Profit function to be maximum are :

ati
(1) Necessary condition : dP = 0 and (2) Sufficient condition : d2P < 0
dx uc dx2
Ed
7. State the conditions for production cost function C to be minimum.
of

A Let, x = Quantity produced, C = Cost of production

er

As we know, C = f(x)
sh

Conditions for a Cost function to be minimum are :

b li

(1) Necessary condition : dC = 0 and (2) Sufficient condition : d2C > 0

dx dx2
Pu

8. Write the chain rule of differentiation.

..
..

A If y is a differentiable function of u and u is a differentiable function of x then as per chain rule,

..

dy = dy x du
..

dx du dx
..
..

9. What is maximum value of a function ?

..

A Consider y = f(x). If h is very small positive number and if f(a) > f(a + h) and also f(a) > f(a - h) then f(x) is
..

said to be maximum at x = a.
..
..

10. When can it be said that a function is decreasing at a point ?

..

A Consider y = f(x). If h is very small positive number and f(a + h) < f(a) and also f(a) < f(a - h) then f(x) is said
..
..

to be a decreasing function at x = a.
..

If the function f(x) is decreasing at x = a then f (a) < 0.

..
..

Page... 18
 12th Commerce / Statistics
* indicates Chapters of Part - 2
SECTION Type of Questions : MSQs Question Numbers : 40 to 51
Chapters Covered : 1, 2, 3, 4, Marks of each question : 3

D 1*, 2*, 5* Total Marks of the Section : 24

Question No. : 40 41 42 43 44 45 46 47 48 49 50 51
Chapter No. : 1 1 2 3 3 4 1* 1* 1* 2* 2* 5*

QUESTION NO. 42
Chapter - 2 Linear Correlation
1. Interpret r = 1, r = -1 and r = 0
A (i) r = +1

. ..  Perfect positive linear correlation between two variables X & Y

..

s
..

ial
.  Graph (Scatter Diagram) of X & Y will be a straight line with positive
.. slope (upward sloping)

ter
Ma
(ii) r = -1

dy
Stu
 Perfect negative linear correlation between two variables X & Y.
 Graph (Scatter Diagram) of X & Y will be a straight line with negative

al
slope (downward sloping)

on
(iii) r = 0

ati
It means there is a lack of linear correlation between X & Y. uc
(However it should be noted that r = 0 implies lack of linear correlation only and there may be Non linear or
Ed
Curvilinear correlation like Quadratic, Bi - quadratic, Sine curve etc.)
of
er

QUESTION NO. 43 / 44
sh
b li

Chapter - 3 Linear Regression

Pu

1. State the utility of regression.

..

A (1) To get functional relationship between the dependent variable (Y) with independent variable (X).
..

(2) To provide the estimate of value of dependent variable from the values of independent variable.
..

(3) To determine approximate change in the value of dependent variable (Y) for a unit change in the
..
..

independent variable (X)

..

(4) To obtain the measure of the error involved in using the regression line as a basis for estimation.
..

2. Explain : Coefficient of determination.

..
..

A Meaning
..

The coefficient of determination is used to decide how far the assumption of linear correlation between the
..

variables is valid, for determining the regression line. It is denoted by R 2. The value of R2 lies between 0
..
..

and 1. If the value of R2 is close to 1 the assumption is valid and if it is close to 0, the assumption cannot be
..

regarded as valid.
..
..

R2 = r2 = Explained Variance
Total Variance

Page... 19
 Important Theory for all Sections
Interpretation on the basis of value of R2
On the basis of the value of R2, we can have idea about the trustworthiness of the estimates obtained and
the validity of the assumption of the linear correlation between X and Y.
Forecasts obtained by Assumption about linear
Situation
regression lines correlation between X and Y
R =1
2
100% reliable Perfectly valid
R2 = 0 100% unreliable Perfectly invalid
R is close to 1
2
Considerably reliable Considerably valid
R2 is close to 0 Considerably unreliable Considerably invalid
Practically
If r = 0.8, Coefficient of determination R2 = 0.64
It means that : 64% of variation in the Y is explained by the regression model.
Remaining 36% variation in the Y is unexplained i.e. due to error.
3. State precautions which are necessary while using the regression.

s
A (1) Regression analysis should be used only when there is cause and effect relationship between the

ial
two variables under the study.

ter
(2) The reliability of the estimate should be verified by coefficient of determination (R 2).

Ma
(3) Linearity bewteen two variables should be ascertained using coefficient of determination (R 2). If it is
found linear or closer to linear, regression model should be used.

dy
(4) The regression should not be used for the values which are very far from the given values of the

Stu
independent variables.

al
on
QUESTION NO. 50
ati
Chapter - 2* Random Variable and Discrete Probability Distribution
uc
Ed
1. What is discrete probability distribution ? State its properties.
A Suppose X is a random variable which can assume values x 1, x2, x3,....xn of R with respective probabilities
of

p(x1), p(x2).......... p(xn) such that

er
sh

n
(i) 0 < p(xi) < 1, i = 1, 2, 3, ...... n & (ii) p(xi) = 1
b li

i=1
Pu

then set of real values {p(x1), p(x2)..........p(xn)} is known as probability distribution of random variable X.
..

Probability distribution of a random variable x in tabular form :

..

X=x : x1 x2 x3 x4 . . . . . . . . x n - 1 xn Total
..
..

p(x) : p(x1) p(x2) p(x3) p(x4) . . . . . . . . p(xn - 1) p(xn) 1

..

Properties of discrete probability distribution

..

(1) For each value of discrete variable x, p(x) > 0

..
..

(2) P(X) = 1
..

2. Describe on : Mean and Variance of discrete variable.

..

A Two important results can be drawn based on probability distribution of a discrete random variable. One of
..
..

them is mean (expected value) and other is variance.

..

Mean :
..

The expected value of random variable is the average value of random variable. If x i is a random variable
..
..

then its mathematical expected value is denoted by E(x) and it is given by...
E(x) = x p(x)
The mean of discrete random variable x is the expected value of x i.e. E(x) = 
Variance :
The variance of random variable x is denoted by V(x) and it is given by
2 = V(x) = E(x2) - [ E(x) ]2 Where.. E(x2) =  x2 p(x)

Page... 20
 12th Commerce / Statistics
3. Write short note on : Dichotomous experiment.
A A statistical experiment which obeys the law of dichotomy is dichotomous experiment.
A dischotomous experiment has only two sets of outcomes : Success (S) & Failure (F).
If “U” is the sample space associated with dischotomous experiment then U = {S,F}
If “p” is the probability of Success - “S” and q is the probability of failure - “F” then
P(S) = p
P(F) = q
and S & F being mutually exclusive & exhaustive.
p + q = 1.
Illustrations :
Dichotomous experiment Possible set of outcomes
Success Failure
(1) Result of rolling of a dice Even number Odd number
(2) Examining Gender of a child in a Hospital Boy Girl

s
(3) Result of a drug to cure T.B. TB Cured Not cured

ial
4. Define Bernoulli trials. Give properties of Bernoulli trials.

ter
A Bernoulli trials :

Ma
If a dichotomous experiment having two possible sets of outcomes say Success (S) and Failure (F) is
- repeated “n” times under identical conditions and

dy
- probability of success at each trial p, (0 < p < 1) remains constant then such trials are known

Stu
as Bernoulli Trials.
Properties of Bernoulli’s Trials :

al
on
1) The probability of getting success “S” denoted by “p” or probability of getting Failure ‘F’ denoted by “q”

ati
at each Bernoulli trial remain constant.
2) Bernoulli Trials are mutually independent i.e. probability of getting success or failure at any trial is
uc
independent of probability of getting success or failure at the previous trial.
Ed
3) Success and failure are mutually exclusive and exhaustive events i.e. p + q = 1
of

5. State properties of binomial distribution.

er

A (1) Binomial Probability Distribution is the discrete probability distribution applicable to Finite discrete
sh

random variable only.

b li

(2) ‘n’ & ‘p’ are parameters of Binomial Distribution.

Pu

(3) Mean = n.p,

..

Standard Deviation(SD) = n.p.q

..

Variance (s) = n.p.q

..
..

q-p.
Skewness =
..

n.p.q
..

(4) (i) If p = q, the distribution is symmetrical. (p = 1/2, q = 1/2)

..
..

(ii) If p < q, the distribution is positively skewed. (p < 1/2, q > 1/2)
..

(iii) If p > q, the distribution is negatively skewed. (p > 1/2, q < 1/2)
..

(5) The mean of binomial distribution is always greater than variance. (i.e. np > npq)
..
..

(6) If for a Binomial variate, value of parameter ‘n’ is relatively very high and value of ‘p’ and ‘q’ are not very
..

low, Binomial distribution tends to Normal distribution.

..
..
..

Page... 21
 Important Theory for all Sections
* indicates Chapters of Part - 2
SECTION Type of Questions : LQs Question Numbers : 52 to 55
Chapters Covered : 3*, 4*, 5* Marks of each question : 4

E Question No. :
Chapter No. :
52 (A + B) 53
3* 3*
Total Marks of the Section :
54
4*
55
5*
12

QUESTION NO. 52 (A + B)
Chapter - 3* Normal Distribution
1. Define probability density function of continuous 2

random variable. - (x2 -)

f(x) = 1 .
2
e ; - < x <
A A function for obtaining probability that a continuous  2
random variable assumes value between specified

s
Where....

ial
interval is called probability density function (p.d.f.)
f(x) = Probability of Normal variate‘x’.

ter
of that variable. It is denoted by f(x).
 = Standard Deviation of Normal Distribution.
2. Write the conditions for probability density

Ma
function for continuous variable.  = Mean of Normal Distribution..
 = Constant No. ( 22/7 or 3.14 )

dy
A Conditions are :
e = Constant No. ( 2.718 )

Stu
(1) The probability that the value of random variable
lies within the specified interval is non-negative 5. Define standard normal variable and write its

al
(2) The total probability that the random variable probability density function.

on
assumes any value within specified interval is 1. A If x is a Normal variate with Mean = and S.D. =

ati
3. How is the normal curve drawn ? then Standard Normal variate (z) is given by
A A normal curve is drawn by considering different uc x-
z =

Ed
values of normal variate X and its respective values
of probability density function f(x). Such curve is a Standard Normal variate (z) also obeys Normal
of

perfectly bell shaped curve. Distribution with Mean = 0 and S.D. = 1. Probability
er

4. Define probability density function for normal density function of standard normal variate Z is
sh

variable. given by :
b li

A Normal Probability Distribution is a continuous 2

- 2z
Pu

probability distribution given by probability density f(z) = 1 . e ; - < z <

..

function...  2
..
..
..
..

***************
..
..
..
..
..
..
..
..
..
..
..

Page... 22