Department of Economics
Vivekananda College
(University of Delhi)
Quiz: 1
Course: GE (Economics) III year Paper: Basic Statistics for Economics
Time: 1 Hour Maximum Marks: 30
Instructions:
1. This quiz consist of multiple choice questions. Each question has 4 choices out of which one is
correct. You are required to choose the correct option.
2. Each question carries a weightage of 2 marks. There is no negative marking.
3. Use of simple calculator is allowed.
4. Good Luck!
Your Name _______________________________
Course _______________________________
Class Roll No. _______________________________
Signature _______________________________
1. A population has standard deviation σ = 40. A sample of 64 observations yields a mean of
190. Test the hypothesis that the population mean is 200 at 1% significance level. The
computed z-score and the test result is:
a) –2.00; fail to reject H₀
b) –2.00; reject H₀
c) –1.96; reject H₀
d) –2.5; fail to reject H₀
2. In a two-tailed test: n = 64, x̄ = 102, μ = 100, σ = 8. Find p-value.
a) 0.045
b) 0.058
c) 0.0228
d) 0.0916
3. A coin is tossed 100 times and comes up heads 58 times. Test the claim that the coin is fair at
α = 0.05. The computed z-score and the test result is:
a) z = 1.6; fail to reject H₀
b) z = 2.4; reject H₀
c) z = 1.96; reject H₀
d) z = 1.15; fail to reject H₀
4. What does α = 0.01 mean?
a) 1% chance of rejecting false null hypothesis
b) 99% chance of making Type I error
c) 1% tolerance for making Type I error
d) Probability of Type II error
5. The z-test is appropriate when:
a) Sample size is less than 30
b) Population variance is unknown
c) Population is not normal
d) Population standard deviation is known
6. Which of the following is NOT a correct interpretation of the p-value?
a) It measures the probability of observing the sample statistic under H₀
b) A smaller p-value indicates stronger evidence against H₀
c) If p < α, we fail to reject H₀
d) p-value depends on both sample data and test direction
7. Which of the following reduces both Type I and Type II error?
a) Increasing α
b) Decreasing sample size
c) Increasing sample size
d) Lowering significance level
8. A researcher selects α = 0.10. Which statement is true?
a) Test has low power
b) Greater risk of Type II error
c) Lower chance of Type I error
d) More likely to reject H₀
9. What does “statistically significant” mean in hypothesis testing?
a) Result is important in real-world terms
b) p-value is smaller than α
c) z-score exceeds standard deviation
d) Type II error is avoided
10. Suppose a researcher performs a hypothesis test and finds a p-value of 0.049 with α = 0.05.
Which of the following is the most accurate interpretation?
a) The null hypothesis is definitively false
b) There is weak evidence against the null hypothesis
c) The difference is practically significant
d) The probability that the null hypothesis is true is 4.9%
11. In the context of hypothesis testing, the "power" of a test refers to:
a) The likelihood of making a Type I error
b) The probability that the null hypothesis is true
c) The probability of correctly rejecting a false null hypothesis
d) The significance level chosen before the test
12. If a test for population mean is conducted with H₀: μ = 50 and H₁: μ ≠ 50, and the 95%
confidence interval for the sample mean is (47.2, 49.8), the correct conclusion is:
a) Fail to reject H₀ at α = 0.05
b) Reject H₀ at α = 0.05
c) Accept H₀ since 50 is close to the sample mean
d) The result is inconclusive
13. Which of the following best defines a composite alternative hypothesis?
a) A hypothesis that specifies a single value for the population parameter
b) A hypothesis that includes more than one possible value
c) A hypothesis that assumes the population mean equals the sample mean
d) A hypothesis that is tested using a one-tailed test
14. Which of the following is NOT a necessary condition for conducting a valid hypothesis test
for a population mean?
a) Random sampling
b) Population standard deviation is known
c) The population is normally distributed or n is large
d) Sample observations are independent
15. In hypothesis testing terminology, what does "effect size" refer to?
a) The likelihood of making an error in testing
b) The magnitude of the difference between the sample statistics and null hypothesis
parameter values
c) The sample size required for power analysis
d) The variability in the sampling distribution
