Q1.

From a population that is normally distributed, a sample of 25 elements is selected and the
standard deviation of the sample is computed. For the interval estimation of m, the proper
distribution to use is the

- Normal distribution
- T distribution
- T distribution with 26 degrees of freedom
- T distribution with 24 degree of freedom

Q2. If x is a variable with values 10,20,30 and frequency 6, unknown, 2 respectively. The average
value of x is 16. What will be the known frequency?

- 2
- 4
- 5
- None of these

Q3. If random variable x is normally distributed with mean 20 and standard deviation 10, then for
what value of x score is 2.5

- 45
- 54.5
- 30.5
- 25

Q4. The J.O. Supplies company buys calculators from a non-us supplier. The probability of a defective
calculator is 10 percent. If 100 calculations are selected at random. What is the standard deviation of
the number of defectives?

- 9
- 3.77
- 9.49
- 3

Q5. Passage:-

A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution

Question:-

How many lamps will fail between 950 and 1000 hours?

- 200
- 250
- 234
- 1250

Q6. Passage:-

A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution

Question:-
What proportion of lamps will fail before 925 hours?

- 0.16
- 0.25
- 0.30
- 0.40

Q7. Passage:-

A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution

Question:-

How many lamps will fail before 900 hours?

- 4560
- 2300
- 2000
- 4000

Q8. Passage:-

A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution

Question:-

Given the same mean life, what would the standard deviation have to be ensure that no more than
20% of lamps fail before 916 hours?

- 120
- 123
- 100
- None of these

Q9. A lottery is conducted using three urns. Each urn contains chips numbered from 0 to 9. One chip
is selected at random from each urn. The total number of sample points in the sample space is

- 30
- 100
- 729
- 1000

Q10. Mean weight of the class od students is 65, and standard deviation is 20. If a group of 16
students is randomly selected from the class, then the probability that average weight of group is
greater than 75 (table value at z=2 is 0.48)

- 0.02
- 0.48
- 0.98
- None of these
Q11. If random variable x is normally distributed with mean 20 and standard deviation 10, then z –
score for x =25 is ______

- Z- score for x=25 is equal to 0.5

- Z- score for x=25 is equal to -0.5
- Z- score for x=25 is equal to 1.0
- Z- score for x=25 is equal to -1.0

Q12. The data set 12,13,27,18,32 is:

- Right- skewed
- Left skewed
- Symmetrical
- None of these

Q13. The summaries of data, which may be tabular, graphical, or numerical are referred to as

- Inferential statistics
- Descriptive statistics
- Statistical inference
- Report generation

Q14. If an interval estimate is said to be constructed at the 90% confidence level, the confidence
would be

- 0.1
- 0.95
- 0.9
- 0.05

Q15. The most common graphical presentation of quantitative data is a

- Histogram
- Bar graph
- Relative frequency
- Pie chart

Q16. If x is a variable with values 10,20,30 and frequency 6, unknown,2 respectively. The average
value of x is 16. What will be the unknown frequency?

- 2
- 4
- 5
- None of these

Q17. The variance is a measure of dispersion or variability of a random variable. It is a weighted

average of the

- Square root of the deviations from the mean

- Square root of the deviation from the median
- Squared deviation from the median
- Squared deviations from the mean
Q18. According to a survey of adult, 64 percent have money in a bank savings account. If we were to
survey 50 randomly selected adults. Find the mean number of adults who would have bank savings
accounts.

- 12
- 22
- 32
- 42

Q13. As the number of degrees of freedom for a t distribution increases, the difference between the
t distribution and the standard normal distribution

- Becomes larger
- Becomes smaller
- Stays the same
- None of above answer

Q14. In hypothesis testing if the null hypothesis has been rejected when the alternative hypothesis
has been true

- A type I error has been committed

- A type II error has been committed
- Either a type I or type II has been committed
- The correct decision has been made

Q15. In the following example, null and alternative hypothesis are written as Ho: sample proportion<
0.25Ha: sample proportion >0.25. select a statement which hold true

- Null and alternative hypothesis are rightly set to conduct testing

- Null and alternative hypothesis are not mutually exculsive
- Null and alternative hypothesis not set for population parameter
- Null and alternative hypothesis not collectively exhaustive

Q16. Values of quartiles from a given data is given as, first quartile= 5, second quartile= 10, third
quartile= 20. What will be the median for this data?

- 12.5
- 10
- 20
- Data is insufficient

Q17. A coin is tossed twice. It could be head or tails each time. There are four combinations. Are
they

- Collectively exhaustive but not mutually exclusive

- Mutually exclusive but not collectively exhaustive
- Both collectively exhaustive and mutually exclusive
- None of these
Q18. I have 4 areas where I wish to conduct a market survey and wish to ensure all income groups
are equally represented. However, I wish to draw samples at random from within the various
groups. I will conduct a

- Stratified sample
- Cluster sample
- Quota sampling
- Neither of them

Q19. A continue random variable may assume

- Any value in an interval or collective of intervals

- Only integer values in an interval collection of intervals
- Only fractional values in as interval or collection of intervals
- Only the positive integer values in an interval

Q20. In case of normal distribution following statement is true

- In normal distribution, area below mean is equal to the mean

- In normal distribution, area below mean is equal to 1
- In normal distribution, area below mean is equal to the variance
- In normal distribution, area below mean is equal to 0.5

Q21. Which statement is true for normal curve?

- Area under the normal curve is equal to the mean

- Area under the normal curve is equal to one
- Area under the normal curve is equal to the variance
- Area under the normal curve is equal to the coefficient of variation

Q22. The level of significance

- Can be any positive value

- Can be any value
- Is (1- confidence level)
- Can be any value between -1.96 to 1.96

Q23. Fifteen percent of the students in a school of business. Administration are majoring in
economics, 20%in finance, 35% in management , and 30% in accounting. The graphical device (s)
which can be used to present these data is (are)

- A line graph
- Only a bar graph
- Only a pie chart
- Both a bar graph and a pie chart

Q24. Consider a hypothesis H0 where ϕ0 = 5 against H1 where ϕ1 > 5. The test is – Right Tailed

Q25
Business Statistics – Final Exam (70 Questions) A batch of 5000 electric lamps have a mean
life of 1000 hours and standard deviation of 75 hours. Assume a normal distribution

1. What proportion of lamps will fail before 925 hours? 0.16

2. How many lamps will fail before 900 hours? 4560

3. How many lamps will fail between 900 and 100 hours? 1250

4. Given the same mean life, what would the standard deviation have to be to ensure that
no more than 20% lamps will fail before 916 hours? 100

5. Whenever using the t distribution in estimation, we must assume that The sampling
distribution is approximately normal

6. Pained t test can be conducted if we have ………………………. Dependent Sample

7. A complete price index based on the prices of a group of items is known as the……
Aggregate Price Index

8. A cumulative relative frequency distribution shows: The percentage of data items with
values less than or equal to the upper limit of each class

9. In constructing a frequency distribution, as the number of classes are decreased the class
width Remains unchanged

10. I have 4 areas where I wish to conduct a market survey and wish to ensure all income
groups are equally represented. However, I wish to draw samples at random from within the
various groups. I will conduct a…………… Stratified Sample

11. The t distribution is applicable whenever…… the population is normal and the sample
standard deviation is used to estimate the population standard deviation

12. If random variable x is normally distributed with mean 20 and standard deviation 10,
then for what value of x, z score is -2.5………………. 45

13. A frequency distribution is………… a tabular summary of a set of data showing the
frequency of items in each of several non-overlapping classes

14. From a population that is normally distributed, a sample of 25 elements is selected and
the standard deviation of the sample is computed. For the interval estimation of m, the
proper distribution to use is the………….. t distribution with 24 degrees of freedom
15. The intersection of two mutually exclusive events……… Can be any positive value

16. Chi square test can be used to……. a. Analyze differences between various population
proportions b. Test the hypothesis of independence between two categorical variables c.
Test the goodness of fit of a distribution d. All of these

17. A test has been used to check average marks of boys and girls differ significantly. What
test it could be? ANOVA

18. From a population that is not normally distributed and whose standard deviation is not
known, a sample of 20 items is selected to develop an interval estimate for m.………….. The t
distribution with 19 degrees of freedom must be used

19. A and B are mutually exclusive and collectively exhaustive events. Probability of A is 0.60.
Probability of B is……….. Equal to 0.40

20. The degrees of freedom for the F test in a one-way ANOVA are………. (n – c) and (c – 1)

21. Which test will you use if you have a numerical variable and related samples? Paired t
test

22. In hypothesis testing if the null hypothesis is rejected………… the alternative hypothesis
is true

23. As the number of degrees of freedom for a t distribution increases, the difference
between the t distribution and standard normal distribution…………. Becomes smaller

24. A company wishes to determine the top 20 distributors of a particular product. He would
have to construct a……….. Pareto Chart

25. Which among the following is not true about coefficient of correlation? It can have a
value equal to zero

26. If A and B are two mutually exclusive and exhaustive events with probability of A equal
to 0.3, then find probability of B………… 0.7

27. The mean of a sample……………. Is computed by summing all the data values and
dividing the sum by the number of items

28. The most common graphical presentation of quantitative data is a…………. histogram

29. If the null hypothesis is false then which of the following is accepted? Alternative
Hypothesis

30. A statement is made about a population for testing purpose is called……… Hypothesis
31. In the following example, null and alternative hypothesis are written as HO: sample
proportion < 0.10 Ha: sample proportion > 0.10. Select a statement which hold true…… Null
and alternative hypothesis not set for population parameter

32. Which statement is true for Normal curve? Area under the normal curve is equal to one

33. In hypothesis testing if the null hypothesis has been rejected when the alternative
hypothesis has been true…………… A type I error has been committed

34. Regression analysis is a statistical procedure for developing a mathematical equation

that describes how…………… one dependent and one or more independent variables are
related

35. If random variable x is normally distributed with mean 20 and standard deviation 10,
then zscore for x = 25 is………………… z-score for x = 25 is equal to 0.5

36. A simple random sample of 100 observations was taken from a large population. The
sample mean and the standard deviation were determined to be 80 and 12 respectively. The
standard error of the mean is……………….. 1.2

37. In a standard normal distribution, the range of values of z is from………… 0 to 1

38. Mention the type of the normal distribution…………. Normal is a continuous type of
distribution

39. Which of the following test is based on observed and expected frequencies? Chi Square

40. Simulation is a popular tool………. Used as pilot testing and imitate real world

41. Chi-square is used to analyze……………… frequencies

42. Fifteen percent of the students in a school of Business Administration are majoring
Economics, 20% in Finance, 35% in Management, and 30% Accounting. The graphical
device(s) which can be used to present these data is (are)………………… both a bar graph and
a pie chart

43. From 180 students of a PGDM program, 30 opt for HR, 50 opt for Marketing, 60 opt
Finance, rest of the student opt Operations. What will be the angle corresponding to
Operations, if this data is presented in pie chart? 80

44. The variance is a measure of dispersion or a variability of a random variable. It is a

weighted average of the………………. Squared deviations from the mean

45. The addition law is potentially helpful when we are interested in computing the
probability of………. The intersection of two events
46. In the following example, null and alternative hypothesis are written as HO: sample
proportion < 0.25 Ha: sample proportion > 0.25. Select a statement which hold true…… - Null
and alternative hypothesis are rightly set to conduct testing

47. A lottery is conducted using three urns. Each urn contains chips numbered from 0 to 9.
One chip is selected at random from each urn. The total number of sample points in the
sample space is……… 1000

48. ………………. test would test whether the population mean is less than a specified
value……………. One tail hypothesis

49. Which of these is true…………. The sum of differences between the mean and each
element of the data-set is 0

50. If a dice is tossed twice, how many cases will give the sum of 10? 3

51. In a cumulative relative frequency distribution, the last class will have a cumulative
relative frequency equal to……………………. The total number of elements in the data set

52. Values for the probabilistic inputs to a simulation…………… are randomly generated
based on historical information

53. A hair/fair die is rolled 10 times. What is the average number of even number outcomes?
5

54. Simulation……………. a. Does not guarantee optimally b. Is flexible and does not require
the assumptions of theoretical models c. Allows testing of the system without affecting the
real system d. All of the alternatives are correct

55. A and B are mutually exclusive events. Probability of A is 0.60. Probability of B is….. Equal
to 0.40

56. As the number of degrees of freedom for a t distribution increases, the difference
between the t distribution and standard normal distribution…………. Becomes smaller

57. In the data-set 1,2,5,7,9,2 by changing the 3rd variable to 6….. The mean and median
are altered

58. Parametric test example are………….. t-test, z-test, f-test, all of these

59. In case of a normal distribution following statement is true….. In normal distribution,

area below mean is equal to 1

60. Chi-square test statistic is equal to the squared difference between……… Observed and
Expected

61. An index that is designed to measure changes in quantities over time is the…….. quantity
index
62. The ages in an old age home areas follows 65, 66, 67, 63, 68, 69, 70, 88, 91, 73, 64, 71.
The mode of ages in the home is…………… does not exist

63. The data-set 12, 13, 27, 18, 32 is………… Right-skewed

64. A type 1 error occurs when we……………… reject a true null hypothesis

65. Average marks obtained in a class of 120 students is 60. If the average marks of all 75
boys is 45 then find average marks obtained by girls…………….. 85

66. If an interval estimate is said to be constructed at the 90% confidence level, the
confidence coefficient would be…………………. 0.9

67. A normal distribution with a mean of 0 and a standard deviation of 1 is called……… a

standard normal distribution

68. Qualitative data can be graphically represented by using a(n)……………. Frequency

polygon

69. Calculate median for the data 20 12 22 24 12 24 26 12………….. 21

70. The sum of the percent frequencies for all classes will always equal to………… 100