National UNIVERSITY

Business Statistics
SAMPLE QUIZ - 001

Multiple-choice Questions (MCQs)

1. What is the primary purpose of descriptive statistics in business?

A) To make predictions about future business performance
B) To summarize and present data in a meaningful way
C) To test hypotheses and make inferences
D) To assess the causality between variables
Answer: B

2. Which measure of central tendency is most affected by outliers in a data set?

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

3. In a normal distribution, approximately what percentage of data falls within one

standard deviation of the mean?
A) 34%
B) 50%
C) 68%
D) 95%
Answer: C

4. A high correlation coefficient (close to +1) between two variables indicates:

A) A strong positive linear relationship
 B) A strong negative linear relationship
C) No relationship between the variables
D) A weak linear relationship
Answer: A

5. In hypothesis testing, the p-value represents:

A) The probability of committing a Type I error
B) The probability of committing a Type II error
C) The level of significance
D) The probability of observing the test statistic or more extreme results,
assuming the null hypothesis is true
Answer: D

6. Which of the following sampling methods is likely to produce the most

representative sample?
A) Convenience sampling
B) Stratified sampling
C) Judgmental sampling
D) Quota sampling
Answer: B

7. What is the formula for calculating the coefficient of variation (CV)?

A) CV = (Standard Deviation / Range) * 100
B) CV = (Standard Deviation / Mean) * 100
C) CV = (Range / Mean) * 100
D) CV = (Range / Standard Deviation) * 100
Answer: B

8. Which type of data is categorical and can be organized into non-numeric

categories or labels?
A) Quantitative data
 B) Continuous data
C) Nominal data
D) Ordinal data
Answer: C

9. In a regression analysis, the dependent variable is also known as:

A) Predictor variable
B) Explanatory variable
C) Response variable
D) Independent variable
Answer: C

10. What does the term "skewness" refer to in statistics?

A) The measure of the spread of data
B) The measure of the central tendency
C) The measure of the asymmetry of a probability distribution
D) The measure of variability in a data set
Answer: C

True & False

1. Descriptive statistics are used to draw conclusions and make inferences about a
population. False

2. True/False: The mean, median, and mode are all measures of central tendency.
True

3. True/False: In a normal distribution, the mean, median, and mode are all equal.
True
4. True/False: Correlation implies causation, meaning that if two variables are
correlated, one causes the other. False

5. True/False: A small p-value in hypothesis testing provides evidence to support

the null hypothesis. False

6. True/False: Stratified sampling involves dividing a population into subgroups and

then randomly selecting samples from each subgroup. True

7. True/False: The coefficient of variation (CV) is a measure of relative variability

and is calculated as (Standard Deviation / Mean) * 100. True

8. True/False: Ordinal data can be measured on a numeric scale, and the intervals
between values are meaningful. False

9. True/False: In regression analysis, the independent variable is the one being

predicted or explained. False

10. True/False: Skewness in a data distribution refers to the symmetry of the

distribution, with a perfectly symmetric distribution having a skewness of zero.
True