RSG CLASSES

MAECO(ENTRANCE)
STATS AND ECOTRIX

BY

RAHUL SIR
(9810148860,981014882)

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CHAPTER-1
Measure of central tendency

1) If the mean of a set of observations 𝑥1 , 𝑥2 , … , 𝑥2 𝑖𝑠 𝑋̅, then the mean

of the observation 𝑥𝑖 + 2𝑖; 𝑖 = 1, 2, … , 𝑛 is

a) 𝑋̅ + 2
b) 𝑋̅ + 2𝑛
c) ̅ + (𝒏 + 𝟏)
𝑿
d) 𝑋̅ + 𝑛

2) If a variate X is expressed as a linear function of two variate U & V in

the form X = aU + bV, then mean 𝑋̅ of X is

a) 𝒂𝑼̅ + 𝒃𝑽̅
b) ̅ + 𝑉̅
𝑈
c) b𝑈̅ + 𝑎𝑉̅
d) none of the above

3) The AM of n numbers of a series is 𝑋̅. If the sum of the 1st (n – 1)

terms is k, then the nth number is

a) 𝑋̅ − 𝑘
b) 𝒏𝑿̅−𝒌
c) 𝑋̅ − 𝑛𝑘
d) 𝑛𝑋̅ − 𝑛𝑘

4) The mean of a set of numbers is 𝑋̅. If each number is divided by 3,

then the new mean is

a) 𝑋̅
b) 𝑋̅ + 3
c) 3𝑋̅
̅
𝑿
d)
𝟑

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5) The weighted AM of 1st n natural numbers whose weights are equal

to the corresponding numbers is equal to

a) 2n + 1
1
b) (2𝑛 + 1)
2
𝟏
c) (𝟐𝒏 + 𝟏)
𝟑
(2𝑛+1)
d)
6

6) The AM of the series 1, 2, 4, 8, 16, … , 2𝑛

2𝑛 −1
a)
𝑛
𝟐𝒏+𝟏 −𝟏
b)
𝒏+𝟏
2𝑛 +1
c)
𝑛
2𝑛 −1
d)
𝑛+1

7) If 𝑋̅ is the mean of 𝑥1, 𝑥2 , 𝑥3 , … , 𝑥𝑛 . Then the algebraic sum of the

deviations about mean 𝑋̅ is

a) 0
𝑋̅
b)
𝑛
c) 𝑛𝑋̅
d) None of the above
8) The one which is the measure of the central tendency is

a) Mode
b) Mean deviation
c) Standard deviation
d) Coefficient of correlation

9) The most stable measure of central tendency is

a) The mean

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b) The median
c) The mode
d) None of these

10) The mean of the distribution, in which the values of X are 1, 2, 3, … , n,

the frequency of each being unity is

𝑛(𝑛+1)
a)
2
𝑛
b)
2
𝒏+𝟏
c)
𝟐
d) None of the above

11) 10 is the mean of a set of 7 observations and 5 is the mean of a set of

3 observations. The mean of the combined set is given by

a) 15
b) 10
c) 8.5
d) 7.5

12) A statistical measure which can’t be determined graphically is

a) Median
b) Mode
c) Harmonic mean
d) Mean

13) The measure which takes into account all the data items is

a) Mean
b) Median
c) Mode
d) None of these

14) An ogive is used to determine

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a) Mean
b) Median
c) Mode
d) None of the above

15) The GM of the series 1, 2, 4, 8, …, 2𝑛 is

a) 𝟐𝒏+𝟏/𝟐
b) 2𝑛+1
c) 2𝑛/2
d) 2𝑛

16) If 𝐺1, 𝐺2 are the geometric means of two series of observations and G
is the GM of the ratios of the corresponding observations then G is
equal to

𝑮𝟏
a)
𝑮𝟐
b) log 𝐺1 − 𝑙𝑜𝑔𝐺2
𝑙𝑜𝑔𝐺1
c)
𝑙𝑜𝑔𝐺2
d) log(𝐺1. 𝐺2)

17) If G is the GM of the product of r sets of observations with geometric

means 𝐺1, 𝐺2, 𝐺3, … , 𝐺𝑟 , respectively, then G is equal to

a) Log 𝐺1 + log 𝐺2 + ⋯ + log 𝐺𝑟

b) 𝑮𝟏 . 𝑮 𝟐 … . 𝑮𝒓
c) 𝑙𝑜𝑔𝐺1 . 𝑙𝑜𝑔𝐺2 … . log 𝐺𝑟
d) None of these

18) A group of 10 items has AM 6. If the AM of 4 of these items is 7.5,

then the mean of the remaining items is

a) 6.5
b) 5.5

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c) 4.5
d) 5.0

19) The AM of a set of observations is 𝑋̅. If each observation is divided by

𝛼 and then is increased by 10, then the mean of the new series is

𝑋̅
a)
𝛼
𝑋̅+10
b) ..
𝛼
̅ +𝟏𝟎𝜶
𝑿
c)
𝜶
d) 𝛼𝑋̅ + 10

20) The weighted means of 1st n natural numbers whose weights are
equal to the squares of corresponding numbers is

𝑛+1
a)
2
𝟑𝒏(𝒏+𝟏)
b)
𝟐(𝟐𝒏+𝟏)
(𝑛+1)(2𝑛+1)
c)
6
𝑛(𝑛+1)
d)
2

21) If a variable takes values 0, 1, 2, …, n with frequencies 1,

𝑛𝐶1 , 𝑛𝐶2 , … , 𝑛𝐶𝑛 , then the AM is

a) n
2𝑛
b)
𝑛
c) n + 1
d) n/2

22) The weighted mean of 1st n natural numbers whose weights are equal
is given by

𝒏+𝟏
a)
𝟐
2𝑛+1
b)
2

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2𝑛+1
c)
3
(2𝑛+1)(𝑛+1)
d)
6

23) If the 1st item is increased by 1, 2nd by 2 and so on, then the new mean
is

a) 𝑋̅ + 𝑛
𝑛
b) 𝑋̅ +
2
𝒏+𝟏
̅+
c) 𝑿
𝟐
d) None of these

24) If 𝑋̅ 𝑎𝑛𝑑 𝑌̅ are the mean of two distributions such that 𝑋̅ < 𝑌̅ & 𝑍̅ is
the mean of the combined distribution, then

a) 𝑍̅ < 𝑋̅
b) 𝑍̅ > 𝑋̅
𝑋̅+𝑌̅
c) 𝑍̅ =
2
̅<𝒁
d) 𝑿 ̅<𝒀
̅

25) The mean of the series 𝑥1, 𝑥2 , … , 𝑥𝑛 is 𝑋̅. If 𝑥2 is replaced by α, then

the new mean is

a) 𝑋̅ − 𝑥2 + 𝛼
𝑋̅−𝑥2 −𝛼
b)
𝑛
(𝑛−1)𝑋̅+𝛼
c)
𝑛
̅ −𝒙𝟐 +𝜶
𝒏𝑿
d)
𝒏

26) The mean income of a group of workers is 𝑋̅ and that of the another
group is 𝑌̅. If the number of workers in the 2nd group is 10 times the
number of workers in the 1 st group, then the mean income of the
combined group is

𝑋̅+10𝑌̅
a)
3
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̅ +𝟏𝟎𝒀
𝑿 ̅
b)
𝟏𝟏
10𝑋̅+𝑌̅
c)
𝑌
𝑋+10𝑌̅
d)
9

27) The AM of the n observations is M. If the sum of the n – 4

observations is a, then the mean of the remaining 4 observations

𝒏𝑴−𝒂
a)
𝟒
𝑛𝑀+𝑎
b)
2
𝑛𝑀−𝑎
c)
2
d) nM + a

28) The sum of squares of deviations of a set of values is minimum when

taken about

a) AM
b) GM
c) HM
d) None of the above

29) If each of the n numbers 𝑥𝑖 = 𝑖 is replaced by (𝑖 + 1)𝑥𝑖 , then the value

of the new mean is

(𝑛+1)(𝑛+2)
a)
𝑛
b) n +1
(𝑛+1)(𝑛+2)
c)
3
d) None of these

30) The mean age of combined group of men and women is 25 years. If
the mean age of the group of men is 26 and the group of the women is
21, then the percentage of men and women of this group is

a) 60, 40

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b) 80, 20
c) 20, 80
d) 40, 60

31) In a moderately skewed distribution mean and median are 5 and 6

respectively, then the value of mode in such a situation is

a) 8
b) 11
c) 16
d) None of these

32) One of the method of determining mode is

a) 2 median – 3 mean
b) 2 median + 3 mean
c) 3 median – 2 mean
d) 3 median + 2 mean

33) The positional average of central tendency is

a) GM
b) HM
c) AM
d) None of these

34) For dealing with qualitative data the best average is

a) AM
b) GM
c) Mode
d) Median

35) If a variable takes discrete values

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7 5 1 1
x + 4, x - 𝑥, 𝑥 − 𝑥, 𝑥 − 3, 𝑥 − 2, 𝑥 + 𝑥, 𝑥 − 𝑥, 𝑥 + 5, then the
2 2 2 2
median is

𝟓
a) x - 𝒙
𝟒
1
b) x - 𝑥
2
c) x – 2
5
d) x + 𝑥
4

36) Which of the following is not a measure of central tendency

a) Mean
b) Median
c) Mode
d) Range

37) If y = f(x) be a monotonically increasing or decreasing function of x

and M is the median of variable x, then the median of y is

a) f(M)
b) M/2
c) 𝑓 −1(𝑀)
d) None of the above

38) The median can graphically be found from

a) Ogive
b) Histogram
c) Frequency curve
d) None of the above

39) If in a moderately skewed distribution the values of mode and mean

are 6𝛼 𝑎𝑛𝑑 9𝛼 respectively, then the value of median is

a) 8𝜶
b) 7𝛼
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c) 6𝛼
d) None of the above

40) The AM of the first n odd natural numbers is

a) n
𝑛+1
b)
2
c) n – 1
d) none of the above

41) The AM of 𝑛𝐶0 , 𝑛𝐶1 , 𝑛𝐶2 , … , 𝑛𝐶𝑛 , is

2𝑛
a)
𝑛
2𝑛 −1
b)
𝑛
𝟐𝒏
c)
𝒏+𝟏
2𝑛−1
d)
𝑛+1

42) The AM of the squares of 1st n natural numbers

(𝑛+1)
a)
6
(𝒏+𝟏)(𝟐𝒏+𝟏)
b)
𝟔
(𝑛2 −1)
c)
6
d) None of the above

43) Geometric mean of 3, 9, 27 is

a) 18
b) 6
c) 9
d) None of the above

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44) If for a moderately skewed distribution, mode = 60 and mean = 66,

then median is

a) 60
b) 64
c) 68
d) None of the above

45) The median of 10, 14, 11, 9, 8, 12, 6 is

a) 14
b) 11
c) 10
d) 12

46) The mean of the discrete observations 𝑦1 , 𝑦2 , … , 𝑦𝑛 is given by

∑ 𝑦𝑖 𝑓𝑖
a) ∑ 𝑓𝑖
∑ 𝑦𝑖 𝑓𝑖
b)
𝑛
∑ 𝒚𝒊
c)
𝒏
∑ 𝑦𝑖
d) ∑𝑖

47) The AM of a set of 50 numbers is 38. If two numbers of the set,

namely 55 and 45 are discarded, the AM of the remaining set of
numbers is

a) 36
b) 36.5
c) 37.5
d) 38.5

48) The geometric mean of numbers 7, 72 , … , 7𝑛 , is

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a) 77/4
b) 74/7
(𝑛−1)
c) 7 2
(𝒏+𝟏)
d) 𝟕 𝟐

49) The sum of deviations of n observations about 25 is 25 and the sum

of deviations of the same n observations about 35 is -25. The mean of
the observation is

a) 25
b) 30
c) 35
d) 40

50) If the sum of the mode and mean of the certain frequency distribution
is 129 and the median of the observation is 63, then the mode and
median are respectively

a) 69 and 60
b) 65 and 64
c) 68 and 61
d) None of the above

51) The mean weight of 9 items is 15. If one more item is added to the
series the mean becomes 16. Now, the value of the 10 th item would be

a) 35
b) 30
c) 25
d) 20

52) The mode of the data 6, 4, 3, 6, 4, 3, 4, 6, 3, x can be

a) 5
b) Both 4 and 6

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c) Both 3 and 6
d) 3, 4 or 6

53) If the difference between the mode and median is 2, then the
difference between the median and the mean is

a) 2
b) 4
c) 1
d) 0

54) If the mean of the following distribution is 13, then the value of p
would be:-

X 5 10 12 17 16 20

F(x) 9 3 P 8 7 5

a) 6
b) 7
c) 10
d) 4

55) The mean of a certain number of observations is m. If each

observation is divided by x and increased by y, then the mean of the
new observation is

a) mx + y
𝑚𝑥+𝑦
b)
𝑥
𝒎+𝒙𝒚
c)
𝒙
d) m + xy

56) The frequency distribution of marks obtained by 28 students in a

test carrying 40 marks is given below:-

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Marks 0-10 10-20 20-30 30-40

Number 6 X y 6
(student)

If the mean of the above data is 20, then the difference between x and
y

a) 3
b) 2
c) 1
d) 0

57) If the median of x/2, x/3, x/4, x/5, x/6, then x is

a) 6
b) 18
c) 12
d) 24

58) If the median of the scores 1, 2, x, 4, 5 is 3, then the mean of the score

a) 2
b) 3
c) 4
d) 5

59) Mode of a certain series is x. If each score is decreased by 3, then

mode of the new series is

a) x
b) x–3
c) x+3
d) 3x

60) If the median of 33, 28, 20, 25, 34, x is 29, then the maximum possible
value of x

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a) 30
b) 31
c) 29
d) 32

61) You are given five observations x1,x2,x3,x4,x5 on a variable x, ordered

from lowest to highest. Supposex5 is increased. Then,
a) The mean median, and variance, all increase.
b) The median and the variance increase but the mean is
unchanged.
c) The variance increases but the mean and the median are
unchanged.
d) None of the above [ISI 2016]

62) An analyst has data on wages for 100 individuals. The arithmetic
mean of the log of wages is the same as:

a) Log of the geometric mean of wages

b) Log of the arithmetic mean of wages
c) Exponential of the arithmetic mean of wages
d) Exponential of the log of arithmetic mean of wages [DSE 2013]

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CHAPTER-2
Measure of dispersion
1) Sum of absolute deviations about median is

a) Least
b) Greatest
c) Zero
d) None of the above

2) In any discrete series (where all the values are not same) the
relationship b/w M.D about mean & S.D is

a) M.D = S.D
b) M.D ≥ 𝑆. 𝐷
c) M.D < 𝑆. 𝐷
d) M.D ≤ 𝑺. 𝑫

3) If each observation of the raw data whose variance is 𝜎 2 is multiplied

by h, then the variance of the new set is

a) 𝜎2
b) 𝒉𝟐 𝝈 𝟐
c) ℎ𝜎 2
d) ℎ + 𝜎2

4) Variance is independent of change of

a) Origin only
b) Scale only
c) Origin and scale both
d) None of the above
5) Mean square deviation of a distribution is least when deviations are
taken about
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a) Mean
b) Median
c) Mode
d) None of the above

6) If the S.D of a variate X is 𝜎, then the S.D of aX + b is

a) |a|𝝈
b) 𝜎
c) a𝜎
d) a𝜎 + 𝑏

7) The quartile deviation of daily wages of 7 persons which are Rs. 12, 7,
15, 10, 17, 17, 25 is

a) 14.5
b) 7
c) 9
d) 3.5

8) The variance of the 1st n natural numbers is

𝑛2 +1
a)
12
𝒏𝟐 −𝟏
b)
𝟏𝟐
(𝑛+1)(2𝑛+1)
c)
6
d) None of the above

𝑎𝑋+𝑏
9) If the S.D of a variable X is 𝜎, then the S.D of , is
𝑐

𝑎
a) 𝜎
𝑐
𝒂
b) | |𝝈
𝒄
𝑐
c) | |𝜎
𝑎

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𝑐
d) 𝜎
𝑎

10) If a variable X takes values 0, 1, 2, …, n with frequencies proportional

to the binomial coefficients 𝑛𝐶0 , 𝑛𝐶1 , 𝑛𝐶2 , … , 𝑛𝐶𝑛 , then the Var(X) is

𝑛2 −1
a)
12
𝑛
b)
2
𝒏
c)
𝟒
d) None of the above

11) In question no. 10, the mean square deviation about mean = 0, is

𝑛(𝑛−1)
a)
4
𝒏(𝒏+𝟏)
b)
𝟒
𝑛(𝑛−1)
c)
2
𝑛(𝑛+1)
d)
2

1
12) Let r be the range and 𝑆 2 = ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )2 be the S.D of a set of
𝑛−1
observations 𝑥1, 𝑥2 , 𝑥3 , … , 𝑥𝑛 , then

𝒏
a) S ≤ 𝒓√
𝒏−𝟏

𝑛
b) S = r√
𝑛−1

𝑛
c) S ≥ 𝑟√
𝑛−1

d) None of the above

13) The mean deviation about mean of the series a, a + d, a + 2d, …, a +

2nd, is

a) n(n+1)d
𝒏(𝒏+𝟏)𝒅
b)
𝟐𝒏+𝟏

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𝑛(𝑛+1)𝑑
c)
2𝑛
𝑛(𝑛+1)𝑑
d)
2𝑛+1

14) The S.D of the series in question no.13, is

𝑛(𝑛+1)
a) 𝑑2
3
𝒏(𝒏+𝟏)
b) √ 𝒅
𝟑
𝑛(𝑛−1)
c) 𝑑2
3
𝑛(𝑛−1)
d) √ 𝑑
3

15) The coefficient of Q.D is calculated by the formula

𝑄1 +𝑄2
a)
4
𝑄3 +𝑄1
b)
4
𝑸𝟑 −𝑸𝟏
c)
𝑸𝟑 +𝑸𝟏
𝑄2 +𝑄1
d)
𝑄2 −𝑄1

16) Quartile deviation is

4
a) 𝜎
5
3
b) 𝜎
2
𝟐
c) 𝝈
𝟑
5
d) 𝜎
4
17) Coefficient of Variation is calculated by the formula

𝑋̅
a) × 100
𝜎
𝑋̅
b)
𝜎
𝝈
c) ̅
× 𝟏𝟎𝟎
𝑿

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𝜎
d)
𝑋̅

18) The mean deviation of the data 3, 10, 10, 4, 7, 10, 5 from the mean is

a) 2
b) 2.57
c) 3
d) 3.75

19) The mean deviation of the data 2, 9, 9, 3, 6, 9, 4 from the mean is

a) 2.23
b) 2.57
c) 3.23
d) 3.57

20) Mean deviation for n observations 𝑥1, 𝑥2 , … , 𝑥𝑛 from their mean 𝑥̅ is

given by

a) ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )
𝟏
b) ∑𝒏𝒊=𝟏 |𝒙𝒊 − 𝒙
̅|
𝒏
2
c) ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )
1
d) ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )2
𝑛

21) Following are the marks obtained by 9 students in math’s test: 50, 69,
20, 33, 53, 39, 40, 65, 59. Now the mean deviation about median is

a) 9
b) 10.5
c) 12.67
d) 14.76

22) The S.D of the data 6, 5, 9, 13, 12, 8, 10 is

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𝟓𝟐
a) √
𝟕
b) 52/7
c) √6
d) 6

23) Let 𝑥1 , 𝑥2 , … , 𝑥𝑛 be n observations and 𝑥̅ be their A.M. The formula for

the S.D is given by

a) ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )2
1
b) ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )2
𝑛
𝟏
c) √ ∑𝒏𝒊=𝟏(𝒙𝒊 − 𝒙
̅ )𝟐
𝒏

1
d) √ ∑𝑛𝑖=1 𝑥𝑖2 + 𝑥̅ 2
𝑛

24) Let a, b, c, d, e be the observations with mean m and standard

deviation 𝜎. The S.D of the observations a + k, b + k, c + k, d + k, e +
k, is

a) 𝝈
b) 𝑘𝜎
c) 𝑘 + 𝜎
𝜎
d)
𝑘

25) Let 𝑥1 , 𝑥2 , … , 𝑥𝑛 be n observations with mean m and S.D s. Then the

S.D of the observations 𝑎𝑥1 , 𝑎𝑥2 , … , 𝑎𝑥𝑛 , is

a) a+s
b) s/a
c) |a| s
d) as

26) Standard deviation of the 1st 10 natural numbers is

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a) 5.5
b) 3.87
c) 2.97
d) 2.87

27) Standard deviation of the 1st 10 even natural numbers is

a) 11
b) 7.74
c) 5.74
d) 11.48

28) Consider 1st 10 positive integers having S.D 2.87. If we multiply each
number by -1 and then add 1 to each number, the S.D of the numbers
so obtained is

a) 8.25
b) 2.87
c) -2.87
d) -8.25

29) The following information relates to a sample of size 60:

∑ 𝑥𝑖 = 960 𝑎𝑛𝑑 ∑ 𝑥𝑖2 = 18000. The variance is

a) 6.63
b) 16
c) 22
d) 44

30) Which of the following statement is incorrect?

a) If 𝑥̅ is the mean of n values of a variable x, then ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ ) = 0

b) If 𝑥̅ is the mean of n values of a variable x and a ha any value other
2
than 𝑥̅ , then ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ ) is the least value of ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )2
c) The mean deviation of the data is the least deviations are taken
about mean

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d) The mean deviation of the data is least when deviations are taken
about median

31) If 𝑥1 , 𝑥2 , … , 𝑥𝑛 are n values of a variable x and 𝑦1 , 𝑦2 , … , 𝑦𝑛 are n

𝑥 −𝑎
values of a variable y such that 𝑦𝑖 = 𝑖 ; 𝑖 = 1, 2, . . 𝑛, then
ℎ

a) Var(y) = var(x)
b) Var (x) = 𝒉𝟐 𝒗𝒂𝒓(𝒚)
c) Var(y) = ℎ2 𝑣𝑎𝑟(𝑥 )
d) Var(x) = ℎ2 𝑣𝑎𝑟(𝑦)

32) The mean deviation from the median is

a) Equal to that measured from another value

b) Maximum if all observation are positive
c) Greater than that measured from any other value
d) Less than that measured from any other value

33) If 25% of the observations in a frequency distribution are less than

20 and 25% are more than 40, then the quartile deviation is

a) 20
b) 30
c) 40
d) 10

34) The S.D of the data:-

X 1 a 𝑎2 … 𝑎𝑛

F(x) 𝑛𝑐0 𝑛𝐶1 𝑛𝐶2 … 𝑛𝐶𝑛

Is
𝟏+𝒂𝟐 𝒏 𝟏+𝒂
a) ( ) − ( )𝒏
𝟐 𝟐
1+𝑎2 2𝑛 1+𝑎 𝑛
b) ( ) −( )
2 2

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1+𝑎 2𝑛 1+𝑎2 𝑛
c) ( ) −( )
2 2
d) None of the above

35) The mean deviation of the series a, a + d, a + 2d, …, a + 2nd from its
mean, is

(𝑛+1)𝑑
a)
2𝑛+1
𝑛𝑑
b)
2𝑛+1
𝒏(𝒏+𝟏)𝒅
c)
𝟐𝒏+𝟏
(2𝑛+1)𝑑
d)
𝑛(𝑛+1)

36) For any two numbers SD is always

a) Twice the range

b) Half of the range
c) Square of the range
d) None of the above

37) If all the observations are increased by 10, then

a) SD will increased by 10
b) MD will increased by 10
c) QD will increased by 10
d) All these three remain unchanged

38) If 𝑅𝑥 & 𝑅𝑦 denote ranges of x and y respectively where x and y are

related by 3x + 2y + 10 =0, what would be the relation between x
and y?

a) 𝑅𝑥 = 𝑅𝑦
b) 2𝑅𝑥 = 3𝑅𝑦
c) 𝟑𝑹𝒙 = 𝟐𝑹𝒚
d) 𝑅𝑥 = 2𝑅𝑦

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39) If the range of x is 2, what would be the range of -3x + 50?

a) 2
b) 6
c) -6
d) 44

40) The coefficient of mean deviation about mean for the 1st 9 natural
numbers is

a) 200/9
b) 80
c) 400/9
d) 50

41) If two variables x and y are related by 2x + 3y – 7 = 0 and the mean

and mean deviation about mean of x are 1 and 0.3 respectively, then
the coefficient of mean deviation about its mean is

a) -5
b) 12
c) 50
d) 4

𝑥−𝑎
42) If the mean and SD of x are a and b respectively, then the SD of is
𝑏

a) –1
b) 1
c) ab
d) a/b

43) If x and y are related by 2x + 3y + 4 = 0 and SD of x is 6, then SD of y

is

a) 22
b) 4

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c) 5
d) 9

44) If x and y are related as 3x + 4y = 20 and the QD of x is 12, then the

QD of y is

a) 16
b) 14
c) 10
d) 9

45) If the SD of the 1st n natural number is 2, then the value of n is

a) 2
b) 7
c) 6
d) 5

46) The mean and SD for a group of 100 observations are 65 and 7.03
respectively. If 60 of these observations have mean and SD as 70 and
3 respectively, what is the SD for the group comprising 40
observations?

a) 16
b) 25
c) 4
d) 2

47) If two samples of size 30 and 20 have means as 55 and 60 and

variances as 16 and 25 respectively, then what would be the SD of the
combined sample of size 50?

a) 5
b) 5.06
c) 5.23
d) 5.35
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48) The mean and SD of a sample of 100 observations were calculated as

40 and 5.1 respectively by a ECO(Hons.) student who took one of the
observations as 50 instead of 40 by mistake? The current value of SD
would be

a) 4.90
b) 5
c) 4.88
d) 4.85

49) Which of the following companies A & B is more consistent so far as

the payment of the dividend is concerned?

Dividend 5 9 6 12 15 10 8 10
(A)
Dividend 4 8 7 15 18 9 6 6
(B)

a) A
b) B
c) Both
d) None

50) The value of appropriate measure of dispersion for the following

distribution of daily wages

Wages Below 30-39 40-49 50-59 60-79 Above

30 80

Number 5 7 18 32 28 10

Is given by

a) 11.03
b) 10.50

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c) 11.68
d) 11.78

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CHAPTER-3
Moments, Skewness and kurtosis
1) The moment about mean which is indication whether distribution is
symmetrical or asymmetrical is considered as

a) first moment
b) third moment
c) second moment
d) fourth moment

2) The kurtosis defines the peakness of the curve in the region which is

a) around the mode

b) around the mean
c) around the median
d) around the variance

3) In kurtosis, the beta is greater than three and quartile range is

preferred for

a) Mesokurtic distribution
b) Mega curve distribution
c) Leptokurtic distribution
d) Platykurtic distribution

4) According to beta, platykurtic distribution is one in which the

a) beta three is greater than three

b) beta two is greater than three
c) beta three is less than three
d) beta two is greater than two

5) In measures of skewness, the absolute skewness is equal to

a) mean+mode
b) mean-mode
c) mean+median
d) mean-median

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6) The median of a moderately skewed distribution is 8, third quartile is

12, first quartile is 8 and inter-quartile range is 4 then relative
coefficient of skewness is

a) ±8
b) ±1
c) ±9
d) ±11

7) For the Karl Pearson's skewness coefficient the value of skewness

must be in limits

a) ±3
b) ±5
c) ±4
d) ±2

8) The distribution is considered leptokurtic if

a) beta three is less than three

b) beta two is greater than two
c) beta three is greater than three
d) beta two is greater than three

9) Consider a set of observations whose mean is 14 and mode of same

set of observations is 12 then values of skewness around central
value are

a) 2
b) 26
c) 1.667
d) 168

10) If the first quartile and third quartile are as 20 and 18 respectively
with the median of 12 then distribution is skewed to

a) close end tail

b) open end tail
c) lower tail

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d) upper tail

11) In kurtosis, the frequency curve which is also classified as normal

curve is called

a) mega curve
b) mesokurtic
c) leptokurtic
d) platykurtic

12) If the median is 12, mean is 15 and the standard deviation of data is 3
then Karl Pearson's coefficient of skewness is

a) 17
b) 27
c) 15
d) 3

13) If all the values move towards one tail of a distribution then this
scenario results in

a) width of distribution
b) height of distribution
c) lengthening the tail
d) shortening the tail

14) The moment about mean which is indication of flatness of frequency

curve is classified as

a) third moment
b) second moment
c) first moment
d) fourth moment

15) The moment about mean which is considered as measure of

dispersion and is equivalent to variance is called

a) eighth moment
b) fifth moment
c) first moment
d) second moment

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CHAPTER-4
Correlation and regression
1) Bivariate data are the data collected for

a) Two variables
b) More than two variables
c) Two variables at the same point of time
d) Two variables at different point of time

2) For a Bivariate frequency table having (p + q) classification the total

number of cells is

a) p
b) p+q
c) q
d) pq

3) Some of the cell frequencies in a Bivariate frequency table may be

a) Negative
b) zero
c) a or b
d) None of the above

4) For a p × 𝑞 Bivariate frequency table, the maximum number of

marginal distributions is

a) p
b) p+q
c) 1
d) 2

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5) For a p × 𝑞 classification of Bivariate data, the maximum number of

marginal distributions is

a) P
b) p+q
c) pq
d) p or q

6) Correlation analysis aims at

a) Predicting one variable for a given value of the other variable

b) Establishing relation between two variables
c) Measuring the extent of relation b/w two variables
d) Both b) and c)

7) Regression analysis is concerned with

a) Establishing a mathematical relationship b/w two variables

b) Measuring the extent of association b/w two variables
c) Predicting the value of dependent variable for a given value of the
independent variable
d) Both a) and c)

8) What is spurious correlation?

a) It a bad relation b/w two variables

b) It is very low correlation b/w the two variables
c) It is the correlation b/w two variables having no casual relation
d) It is a negative correlation

9) Scatter diagram is considered for measuring

a) Linear relationship b/w two variables

b) Curvilinear relation b/w two variables
c) Neither of them
d) Both of them

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10) If the plotted points in a scatter diagram lie from upper left to lower
left, then the correlation is

a) Positive
b) Zero
c) Negative
d) None of the above

11) If the plotted points in a scatter diagram are evenly distributed, then
the correlation is

a) Zero
b) Negative
c) Positive
d) A) or b)

12) In the linear regression of y on x, the estimate of the slope

𝐶𝑜𝑣(𝑥,𝑦)
parameter is given by . Then the slope parameter for the linear
𝑉(𝑥)
regression of x on y is given by
𝑉(𝑥)
a) ;
𝐶𝑜𝑣(𝑥,𝑦)
𝑪𝒐𝒗(𝒙,𝒚)
b) ;
𝑽(𝒚)
𝐶𝑜𝑣(𝑥,𝑦)
c) ;
√𝑉(𝑥)𝑉(𝑥)
d) None of these [ISI 2004]

13) If all the plotted points in a scatter diagram lie on a single line, then
the correlation is

a) Perfect positive
b) Perfect negative
c) Both a) or b)
d) Either a) or b)

14) The correlation b/w the shoe size and the intelligence of a person is

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a) Zero
b) Positive
c) Negative
d) None of the above

15) The correlation between the speed of an automobile and the distance
travelled by it after applying the brakes is

a) Negative
b) Positive
c) Zero
d) None of the above

16) Scatter diagram helps us to

a) Find the nature correlation b/w the two variables

b) Compute the extent of correlation b/w two variables
c) Obtain the mathematical relationship b/w two variables
d) Both a) and c)

17) Pearson’s correlation coefficient is used for finding

a) Correlation for any type of relation

b) Correlation for linear relation only
c) Correlation for curvilinear relation only
d) Both b) and c)

18) Product moment correlation coefficient is considered for

a) Finding the nature of correlation

b) Finding the amount of correlation
c) Both a) and b)
d) Either a) or b)

19) If the value of correlation coefficient is positive, then the points in a

scatter diagram tend to cluster

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a) From lower left corner to upper right corner

b) From lower left corner to upper left corner
c) From lower right corner to upper left corner
d) From lower right corner to upper right corner

20) When r = 1, all the points in a scatter diagram would lie

a) On a straight line directed from lower left to upper right

b) On a straight line directed from upper left to lower right
c) On a straight line
d) Both a) or b)

21) Product moment correlation coefficient may be defined as the ratio of

a) The product of SDs of the two variables to the covariance b/w

them
b) The covariance b/w the variables to the product of the variables of
them
c) The covariance b/w the variables to the product of their SD
d) Either b) or c)

22) The covariance b/w two variables is

a) Strictly positive
b) Strictly negative
c) Always 0
d) Either a) or b) or c)

23) The coefficient of correlation b/w two variables

a) Can have any unit

b) Is expressed as the product of units of the two variables
c) Is a unit free measure
d) None of the above

24) What are the limits of the correlation coefficient?

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a) No limit
b) -1 and 1
c) 0 and 1, including the limits
d) -1 and 1, including the limits

25) In case the correlation coefficient b/w two variables is 1, the

relationship b/w the two variables would be

a) y = a + bx
b) y = a + bx, b> 0
c) y = a + bx, b< 0
d) y = a + bx, both a and b are positive

26) If the relationship between two variables x and y are given by

2x + 3y + 4 = 0, then the value of the coefficient correlation between
x and y is

a) 0
b) 1
c) -1
d) Negative
27) Suppose correlation coefficients between x and y are computed
from (i) y = 2 + 3x and (ii)2y=5 + 8x. Call them p1 and p2,
respectively.
Then
a) p1>p2 ;
b) p2>p1 ;
c) p1 = p2 :
d) Either p1>p2 or p1<p2 [ISI 2004]

28) For finding correlation between two attributes, we consider

a) Pearson’s correlation coefficient

b) Scatter diagram
c) Spearman’s rank correlation coefficient
d) Coefficient of concurrent deviations
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29) For a given bivariate data set (𝑥𝑖 , 𝑦𝑖 ; 𝑖 = 1,2, … , 𝑛), the squared
correlation coefficient (𝑟 2 ) between x2 and y is found to be 1. Which of
the following statements is the most appropriate?
a) In the (x,y) scatter diagram, all points lie on a straight line.
b) In the (x,y) scatter diagram, all points lie on the curve line y
= x2.
c) In the (x,y) scatter diagram, all points lie on the curve y =
a+bx2, a > 0, b > 0.
d) In the (x,y) scatter diagram, all points lie on the curve y = a
+ bx2, a,b any real numbers. [ISI 2007]

30) For finding degree of agreement about beauty b/w two judges in a
Beauty contest, we use

a) Scatter diagram
b) Coefficient of rank correlation
c) Coefficient of correlation
d) Coefficient of concurrent deviation

31) If there’s a perfect disagreement b/w the marks in geography and

statistics, then what would be the value of rank correlation
coefficient?

a) Any value
b) Only 1
c) Only -1
d) b) or c)

32) When we are not concerned with the magnitude of the two variables
under discussion, we consider

a) Rank coefficient correlation

b) Product moment correlation coefficient
c) Coefficient of concurrent deviation
d) A) or b) but not c)

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33) What is the quickest method to find correlation b/w two variables?

a) Scatter diagram
b) Method of concurrent deviations
c) Method of rank correlation
d) Method of product moment correlation

34) What are the limits of the coefficient of concurrent deviations?

a) No limit
b) b/w -1 and 0, including the limit values
c) b/w 0 and 1, including the limit values
d) b/w -1 and 1, including the limit values

35) If there are two variables x and y, then the number of regression
equations could be

a) 1
b) 2
c) Any number
d) 3

36) Since blood pressure of a person depends on age, we need consider

a) The regression equation of blood pressure on age

b) The regression equation of age on blood pressure
c) Both a) and b)
d) Either a) or b)

37) The method applied for deriving the regression equations known as

a) Least squares
b) Concurrent deviation
c) Product moment
d) Normal equation

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38) The difference b/w the observed value and the estimated value in the
regression analysis is

a) Error
b) Residue
c) Deviation
d) a) or b)

39) The error in case of regression equations are

a) Positive
b) Negative
c) Zero
d) All of the above

40) The regression line of y on x is derived by

a) The minimization of vertical distances in the scatter diagram

b) The minimization of horizontal distances in the scatter diagram
c) Both a) and b)
d) Neither a) and b)

41) The two lines of regression become identical when

a) r=1
b) r = -1
c) r=0
d) Either a) or b)

42) Consider two random variables X and Y where X takes value -2, -1,
0,1,2 each with probability 1/5 and Y= |X|. Which of the following is
true?
a) The variable X and Y are independent and Pearson’s
correlation coefficient between X and Y is 0.

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b) The variable X and Y are dependent and Pearson’s correlation

coefficient between X and Y is 0.
c) The variable X and Y are independent and Pearson’s
correlation coefficient between X and Y is 1.
d) The variable X and Y are dependent and Pearson’s
correlation coefficient between X and Y is 1. [ISI 2015]

43) Suppose the random variable X takes values in the set {-1, 0, 1}
and the probability of each value is equal. Let Y = X 2. Which of the
following statements is true?

a) X and Y are correlated but independent

b) X and Y are uncorrelated but dependent
c) X and Y are dependent and have the same mean
d) X and Y are correlated and have different means [DSE 2010]

44) What are the limits of the two regression coefficients?

a) No limit
b) Must be positive
c) One positive and the other negative
d) Product of the regression coefficient must be numerically less than
unity.

45) The regression coefficients remain unchanged due to a

a) Shift in origin
b) Shift in scale
c) Both a) or b)
d) Neither a) or b)

46) If the coefficient of correlation b/w two variables is -0.9, then the
coefficient of determination

a) 0.9
b) 0.81
c) 0.1
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d) 0.19

47) If the coefficient of correlation b/w two variables is 0.7, then the % of
variation unaccounted for is

a) 70%
b) 30%
c) 51%
d) 49%

48) If for two variable x and y, the covariance, variance of x and variance
of y are 40, 16 and 256 respectively, what is the value of the
correlation of coefficient?

a) 0.01
b) 0.625
c) 0.4
d) 0.5

49) If cov(x, y) = 15, what restrictions should be put for the standard
deviation of x and y?

a) No restrictions
b) The product of the SDs should be more than 15
c) The product of the SDs should be less than 15
d) The sum of the SDs should be less than 15

50) In an analysis of bivariate data (X and Y) the following results were

obtained.
Variance of X(σ2x ) = 9, product of the regression coefficient of Y on
X and X on Y is 0.36, and the regression coefficient from the
regression of Y on X(βyx ) is 0.8. the variance of Y is
a) 16
b) 4
c) 1.69
d) 3

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51) If the covariance b/w two variables is 20 and the variance of one of
the variable is 16, what would be the variance of the other variable?

a) More than 100

b) More than 10
c) Less than 10
d) More than 1.25

52) If y = a + bx, then what is the coefficient of correlation b/w x and y?

a) 1
b) -1
c) 1 or -1 according as b> 0 𝑜𝑟 𝑏 < 0
d) None of the above

53) If r = 0.6 then the coefficient of non – determination is

a) 0.4
b) -0.6
c) 0.36
d) 0.64

54) If u + 5x = 6 and 3y – 7v = 20 and the correlation coefficient b/w x

and y is 0.58 then what would be the correlation coefficient b/w u and
v?

a) 0.58
b) -0.58
c) -0.84
d) 0.84

55) If the relation b/w x and u is 3x + 4u + 7 = 0 and the correlation

coefficient between x and y is -0.6, then what is the correlation
coefficient b/w u and y?

a) -0.6
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b) 0.8
c) 0.6
d) -0.8

56) If the sum of squares of difference of ranks, given by two judges A &
B, of 8 students is 21, what is the value of rank correlation coefficient?

a) 0.7
b) 0.65
c) 0.75
d) 0.8

57) If the correlation between variables X and Y is 0, then

a) The regression of Y on X and X on Y intersect at right angles, and

pass through (𝐗̅, 𝐘
̅)
b) The regression of Y on X and X on Y do not intersect at right
angles, but do pass through (̅X, ̅
Y)
c) The regression of Y on X and X on Y intersect at right angles, but
do not pass through (̅X, ̅
Y)
d) The regression of Y on X and X on Y do not intersect at right
angles, and do not pass through (̅ X, ̅
Y) [DSE 2012]

58) If the rank correlation coefficient b/w marks in management and

math’s for a group of student is 0.6 and the sum of squares of the
difference in ranks is 66, what is the number of students in the group?

a) 10
b) 9
c) 8
d) 11

59) While computing rank correlation coefficient b/w profit and

investment for the last 6 years of a company the difference in rank for
a year was taken 3 instead of 4. What is the rectified rank correlation
coefficient if it is known that the original value of rank correlation
coefficient was 0.4?
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a) 0.3
b) 0.2
c) 0.25
d) 0.28

60) For the 10 pair of observations, number of concurrent deviations was

found to be 4. What is the value of the coefficient of concurrent
deviation?

a) √0.2
b) −√0.2
c) 1/3
d) -1/3

61) The coefficient of concurrent deviation for p pairs of observations

was found to be 1/√3. If the number of concurrent deviations was
found to be 6, then the value of p is

a) 10
b) 9
c) 8
d) None of these

62) What is the value of correlation coefficient due to Pearson on the

basis of the following data:

X -5 -4 -3 -2 -1 0 1 2 3 4

Y 27 18 11 6 3 2 3 6 11 18

a) 1
b) -1
c) 0
d) -0.5

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63) Following are the two normal equations obtained for deriving the
regression line of y and x:
5a + 10b = 40
10a + 25b = 95

The regression line of y on x is given by:

a) 2x + 3y = 5
b) 2y + 3x = 5
c) y = 2 + 3x
d) y = 3 + 5x

64) If the regression line of y on x and of x on y are given by 2x + 3y = -1

and 5x + 6y = -1 then the AM of x and y are given by

a) (1, -1)
b) (-1, 1)
c) (-1, -1)
d) (2, 3)

65) Given the following equations: 2x – 3y = 10 and 3x + 4y = 15, which

of the following equation of x on y?

a) 1st equation
b) 2nd equation
c) Both a) and b)
d) None of the above

66) Given the following equations: 3x + y = 13 and 2x + 5y = 20, which

one is the equation of y on x?

a) 1st equation
b) 2nd equation
c) Both of them
d) None of them

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67) If u = 2x + 5 and v = -3y – 6 and the regression coefficient of y on x is

2.4, what is the regression coefficient of v on u?

a) 3.6
b) -3.6
c) 2.4
d) -2.4

68) If 4y – 5x = 15 is the regression line of y on x and the coefficient of

correlation b/w x and y is 0.75, what is the value of the regression
coefficient of x on y?

a) 0.45
b) 0.9375
c) 0.6
d) None of the above

69) If the regression line of y on x and that of x on y are given by y = -2x

+ 3 and 8x = -y + 3 respectively, what is the value of regression
coefficient of x on y?

a) 0.5
b) 0.25
c) -0.5
d) -0.25

70) If the regression coefficient of y on x, the coefficient of correlation

√3
b/w x and y and variance of y are -3/4, and 4 respectively,, what is
2
the variance of x?

2
a)
√3/2
b) 16/3
c) 4/3
d) 4

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71) If y = 3x + 4 is the regression line of y on x and the AM of x is -1, what

is the AM of y?

a) 1
b) -1
c) 7
d) None of the above

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CHAPTER-5
Index number
1) A series of numerical figures which show the relative position is
called

a) Index number
b) Relative number
c) Absolute number
d) None of the above

2) Index number is equal to

a) Sum of price relatives

b) Average of the price relatives
c) Product of price relative
d) None of the above

3) Factor reversal test is satisfied by

a) Fisher’s Ideal Index

b) Laspeyres Index
c) Paasches Index
d) None of the above

4) Which of the following test satisfy the relative formula of weighted

GM?

a) Time reversal test

b) Circular test
c) Factor reversal test
d) None of the above

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5) Laspeyre’s formula does not satisfy

a) Factor reversal test

b) Time reversal test
c) Circular test
d) All of the above

6) A ratio or an average of ratios expressed as a % is called

a) A relative number
b) An absolute number
c) An index number
d) None of the above

7) The ratio of price of single commodity in a given period to its price in

the preceding year price is called the

a) Base period
b) Price ratio
c) Relative price
d) None of the above

8) Chain index is equal to

𝑙𝑖𝑛𝑘 𝑟𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 × 𝑐ℎ𝑎𝑖𝑛 𝑖𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟

a)
100
𝑙𝑖𝑛𝑘 𝑟𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 × 𝑐ℎ𝑎𝑖𝑛 𝑖𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟
b)
100
𝒍𝒊𝒏𝒌 𝒓𝒆𝒍𝒂𝒕𝒊𝒗𝒆 𝒐𝒇 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 × 𝒄𝒉𝒂𝒊𝒏 𝒊𝒏𝒅𝒆𝒙 𝒐𝒇 𝒕𝒉𝒆 𝒑𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒚𝒆𝒂𝒓
c)
𝟏𝟎𝟎
𝑙𝑖𝑛𝑘 𝑟𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 × 𝑐ℎ𝑎𝑖𝑛 𝑖𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟
d)
100

9) When the product of price index and the quantity index is equal to
the corresponding value index then the test that holds is

a) Unit test
b) Time reversal test

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c) Factor reversal test

d) None of the above

10) The formula should be independent of the unit in which or for which
price and quantities are quoted in

a) Unit test
b) Time reversal test
c) Factor reversal test
d) None of the above

11) Laspeyre’s method and Paasche’s method do not satisfy

a) Unit test
b) Time reversal test
c) Factor reversal test
d) B and c

12) The index number is a special type of average

a) False
b) True
c) Both
d) None of the above

13) The choice of suitable base period is at best temporary solution

a) True
b) False
c) Both
d) None of the above

14) Theoretically, GM is the best average in the construction of index

numbers but in practice, mostly the AM is used

a) False

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b) True
c) Both
d) None of the above

15) Laspeyre’s or Paasche’s or the Fisher’s ideal index do not satisfy

a) Time reversal test

b) Unit test
c) Circular test
d) None of the above

16) The test of shifting the base is called

a) Unit test
b) Circular test
c) Time reversal test
d) None of the above

17) The formula for conversion to current value

𝑝𝑟𝑖𝑐𝑒 𝑖𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟

a) Deflated value =
𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑣𝑎𝑙𝑢𝑒
𝒑𝒓𝒊𝒄𝒆 𝒊𝒏𝒅𝒆𝒙 𝒐𝒇 𝒕𝒉𝒆 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓
b) Deflated value =
𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒗𝒂𝒍𝒖𝒆
𝑝𝑟𝑖𝑐𝑒 𝑖𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟
c) Deflated value =
𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑣𝑎𝑙𝑢𝑒
𝑝𝑟𝑖𝑐𝑒 𝑖𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟
d) Deflated value =
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒

18) The number of test of adequacy is

a) 2
b) 5
c) 3
d) 4

19) We use price index numbers

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a) To measure and compare prices

b) To measure prices
c) To compare prices
d) None of the above

20) Simple aggregate of quantities is a type of

a) Quality control
b) Quantity indices
c) Both
d) None of the above

21) The factor reversal test is satisfied by

a) Simple aggregative index number

b) Paasche’s index number
c) Laspeyre’s index number
d) None of the above

22) Fisher’s ideal index number is

a) The median of laspeyre’s and paasche’s index numbers

b) The AM of laspeyre’s and paasche’s index numbers
c) The GM of laspeyre’s and paasche’s index numbers
d) None of the above

23) Time reversal test is satisfied by the following index number is

a) Laspeyre’s index number

b) Simple AM of price relative formula
c) Marshall – edge worth formula
d) None of the above

24) Cost of living index number is expressed in terms of

∑ 𝒑𝒏 𝒒𝟎
a) ∑ 𝒑𝟎 𝒒𝟎
× 𝟏𝟎𝟎

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∑ 𝑝𝑛 𝑞𝑛
b) ∑ 𝑝0 𝑞0
× 100
∑ 𝑝0 𝑞𝑛
c) ∑ 𝑝𝑛 𝑞𝑛
× 100
d) None of the above

25) If the ratio of b/w laspeyre’s and paasche’s index number is 28:27.
Then the missing value of p is

commodity Base year Current year

L 10 2 5
X
L 5 P 2
Y

a) 7
b) 4
c) 3
d) 9

26) If the price of all commodities in a place have increased 1.25 times in
comparison to the base period, the index number of prices of that
place now is

a) 125
b) 150
c) 225
d) None of the above

27) If the index number of prices at a place in 1994 is 250 with 1984 as
base year, then the price have increased on average by

a) 250%
b) 150%
c) 350%
d) None of the above

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28) In 1980, the net monthly income of the employee was Rs. 800/- per
month. The consumer price index number was 160 in 1980. It rises to
200 in 1984. If he has to be rightly compensated. The additional D.A.
to be paid to the employee is

a) Rs. 175/-
b) Rs. 185/-
c) Rs. 200/-
d) Rs. 125/-

29) Bowley’s index number is 150. Fisher’s index number is 149.95.

Paasche’s index number is

a) 158
b) 154
c) 148
d) 156
30) With the base year 1960 the CII in 1972 stood at 250. X was getting a
monthly salary of Rs. 500 in 1960 and Rs. 750 in 1972. In 1972 in
order to maintain the standard of living in 1960 X has to receive an
extra allowance

a) Rs. 600/-
b) Rs. 500/-
c) Rs. 300/-
d) None of the above

31) Circular test is satisfied by

a) Laspeyre’s index number

b) Paasche’s index number
c) The simple GM of price relatives and the weighted aggregative with
fixed weights.
d) None of the above

32) Purchasing power of money is

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a) Reciprocal of price index number

b) Equal to price index number
c) Unequal to price index number
d) None of the above

33) The cost of living index is always

a) Weighted index
b) Price index
c) Quantity index
d) None of the above

34) The time reversal test is not satisfied to

a) Fisher’s ideal index

b) Marshall Edge worth method
c) Laspeyre’s and paasche method
d) None of the above

35) Consumer price index number goes up from 110 to 200 and the
salary of the worker is also raised from Rs. 325 to Rs. 500. Therefore,
in real terms, to maintain his previous standard of living he should
get an additional amount of

a) Rs. 85
b) Rs. 90.91
c) Rs. 98.25
d) None of the above

36) Cost of living index (CII) numbers are also used to find the real wages
by the process of

a) Deflating of index number

b) Splicing of index number
c) Base shifting
d) None of the above

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37) The circular test is an extension of

a) The time reversal test

b) The factor reversal test
c) The unit test
d) None of the above

38) The prices of a commodity in the years 1975 and 1980 were 25 and
30 respectively, taking 1975 as the base year the price relative is

a) 120
b) 135
c) 122
d) None of the above

39) During a certain period the cost of living index number goes up from
110 to 200 and the salary of a worker is also raised from Rs. 330 to
Rs. 500. The worker does not get really gain. Then the real wages
decrease by

a) Rs. 45.45
b) Rs. 43.25
c) Rs. 100
d) None of the above

40) Net monthly salary of an employee was Rs. 3000 in 1980. The
consumer price index numbers in 1985 is 250 with 1980 as base
year. If he has to be compensated correctly, then the dearness
allowances to be paid to the employee is

a) Rs. 4800
b) Rs. 4700
c) Rs. 4500
d) None of the above

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41) Net monthly salary of an employee was Rs. 800 in 1980. The
Consumer price index number was 160 in 1980. It is rises to 200 in
1984. Then for right compensation the additional dearness allowance
to be paid to the employee is

a) Rs. 240
b) Rs. 275
c) Rs. 250
d) None of the above

42) The consumer price index for April 1985 was 125. The food price
index was 120 and other items index was 135. The percentage of the
total weight of the index of the index is

a) 66.67
b) 68.28
c) 90.25
d) None of the above

43) During the certain period the CLI goes up from 110 to 200 and the
salary of the worker is also raised from 330 to 500, then the real
decrease is

a) Loss by Rs. 50
b) Loss by Rs. 75
c) Loss by Rs. 90
d) None of the above

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CHAPTER-6
Probability

1) A problem in statistics is given to the three students A, B & C. Their

probabilities of solving it independently are 1/3, ¼ and 1/5,
respectively. The probability that the problem will be solved?

a) 3/5
b) 2/5
c) 1/5
d) 4/5

2) A box has 10 red balls and 5 black balls. A ball is selected from the
box. If the ball is red, it is returned to the box. If the ball is black, it and
2 additional black balls are added to the box. The probability that a
second ball selected from the box will be red?

a) 47/72
b) 25/72
c) 55/153
d) 98/153

3) Everyone shows that 20% of the people reserving a table at a certain

restaurant never shown up. If the restaurant has 50 tables and takes
52 reservations, then the probability that it will be able to
accommodate everyone?

209
a) 1-
552
𝟒 𝟓𝟐
b) 1-14× ( )
𝟓
4 50
c) ( )
5
1 50
d) ( )
5

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4) Let X be the set of positive integers denoting the number of tries it

takes the Indian cricket team to win the world cup. The team has
equal odds for winning or losing any match. What is the probability
that they will win in odd number of matches?

a) ¼
b) ½
c) 2/3
d) ¾
5) 25 books are placed at random on a shelf. The probability that a
particular pair of books shall be always together?

a) 2/25
b) 1/25
c) 1/300
d) 1/600

6) Let A and B be two events with positive probability each, defined on

the same sample space, find the correct answer
a) P(A/B) > P(A) always
b) P(A/B) < P(A) always
c) P(A/B) > P(B) always
d) None of the above

7) There is a box with 10 balls. Each ball has a number between 1 and 10
written on it. No two balls have the same number. Two balls are
drawn at random from the box. What is the probability of choosing
two balls with odd numbers?

a) 1/9
b) ½
c) 2/9
d) 1/3

8) Let A and B be two mutually exclusive events with positive probability

each, defined on the same sample space. Find the correct answer
a) A and B are necessarily independent
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b) A and B are necessarily dependent

c) A and B are necessarily equally likely
d) None of the above [ISI 2015]

9) Two people, A and B, make an appointment to meet at the train

station between 4:00 pm and 5:00 pm. They agree that each is to wait
for not more than 15 minutes for the other. Assuming that each is
independently equally likely to arrive at any point during the hour,
what is the probability that they will meet?
[ISI 2009]

a) 15/16
b) 7/16
c) 5/24
d) 22/175

10) There are 4 modes of transportation in Delhi (A) AUTO RICKSHAW

(B) BUS (C) CAR (D) DELHI METRO. The probability of using
1 2 4 2
transport A, B, C, D by an individual is , , , respectively. The
9 9 9 9
probability that he arrives late at work if he uses transportation A, B,
5 4 6 6
C, D is , , , respectively. What is the probability that he used
7 7 7 7
transport A if he reached office on time?

a) 1/9
b) 1/7
c) 3/7
d) 2/9

11) A car with 6 sparkplugs is known to have 2 malfunctioning ones. If

2 plugs are pulled out at random, what is the probability of getting at
least one malfunctioning plug?

a) 1/15
b) 7/15
c) 8/15
d) 9/15

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12) Let A and B be any two events, each of which has a positive
probability of occurring. Consider the following statements:
I. If A and B are independent, they must be mutually exclusive
II. If A and B are mutually exclusive, they must be independent.
III. If A and B are independent, they cannot be mutually
exclusive
IV. If A and B are mutually exclusive, they cannot be
independent.

Which of the above statements are true?

a) I and IV
b) II and III
c) III and IV
d) None of the statements are true. [DSE 2008]

13) Suppose there is a multiple choice test which has 20 questions.

Each question has two possible outcomes - true or false. Moreover,
only one of them is correct. Suppose a student answer each of them
randomly. Which one of the following statements is correct?

a) The probability of getting 15 correct answers is less than the

probability of getting 5 correct answers.
b) The probability of getting 15 correct answers is more than the
probability of getting 5 correct answers.
c) The probability of getting 15 correct answers is equal to the
probability of getting 5 correct answers.
d) The answer depends on such things as the order of the questions.

14) An urn contains 5 red balls, 4 black balls and 2 white balls. A
player draws 2 balls one after another with replacement. Then what is
the probability of getting at least one red ball or at least one white
ball?

a) 105/121
b) 67/121
c) 20/121

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d) None of the above

15) Suppose that 80% of all statisticians are shy, whereas only 15% of
all economists are shy. Suppose also that 90% of the people at a large
gathering are economists and the other 10% are statisticians. If you
meet a shy person at random at the gathering, what is the probability
that the person is a statistician?

a) 8/9
b) 0.8
c) 0.08
d) 80/215 [DSE 2008]

16) Population of a city is 40% male and 60% female. Suppose also
that 50% of males and 30% of females in the city smoke. The
probability that a smoker in the city is male?

a) 0.5
b) 0.46
c) 0.53
d) 0.7

17) A fair coin is tossed infinite number of times. The probability that a
head turns up for the first time after even number of tosses?

a) 1/3
b) ½
c) 2/3
d) ¾

18) An entrance examination has 10 “true-false” questions. A student

answers all the questions randomly and his probability of choosing
the correct answer is 0.5. Each correct answer fetches a score of 1 to
the student, while each incorrect answer fetches a score of zero. What
is the probability that the student gets the mean score?

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a) ¼
b) 63/256
c) ½
d) 1/8

19) An urn contains W white balls and B black balls. The balls are
thoroughly mixed and two are drawn, one after the other, without
replacement. Let 𝑊𝐼 denote the outcome ‘white on the i-th draw for i =
1, 2. Which of the following statements is true?(2014)

a) P(W2)=P(W1)=W/(W+B)
b) P(W2)=P(W1)= (W-1)/(W+B-1)
c) P(W1)=W/W+B, P(W2)=(W-1)/(W+B-1)
d) P(W1)=W/W+B, P(W2)={W(W-1)}/{(W-B)(W+B-1)}

20) A bag contains four pieces of paper, each labeled with one of the
digits 1, 2, 3, 4, with no repeats. Three of these pieces are drawn, one
at a time without replacement, to construct a three-digit number.
What is the probability that the three-digit number is a multiple of 3?

a) ¾
b) ½
c) ¼
d) 9/24

21) Let A1, A2, A3 be independent events with probabilities p1, p2, p3
respectively. The probability that none of these events occurs equals

a) 1 – (p1+ p2+ p3)

b) 1 – (p1+ p2+p3) + p1p2 + p1p3 + p2p3
c) (1– p1 ) (1– p2 ) (1– p3 )
d) (1– p2 ) (1+ p1p3) [DSE 2011]

22) Two friends who take the metro to their jobs from the same station
arrive to the station uniformly randomly between 7 and 7:20 in the
morning. They are willing to wait for one another for 5 minutes, after
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which they take a train whether together or alone. What is the

probability of their meeting at the station?

a) 5/20
b) 25/400
c) 10/20
d) 7/16

23) There are three cards. The first is green on both sides, the second is
red on both side and the third is green on one side and red on the
other. I choose a card with equalprobability, then a side of that card
with equal probability. If the side I choose of thecard is green, what is
the probability that the other side is green?
a) 1/3
b) 1/2
c) 2/3
d) ¾ [ISI 2016]

24) There are 3 cards. The first is green on both sides, the second is red
on both sides and the third is green on one side and red on the other. I
choose a card with equal probability, then a side of that card with
equal probability. If the side I choose of the card is green, what is the
probability that the other side is green too?

a) 1/3
b) ½
c) 2/3
d) ¾

25) A bag contains N balls of which a are red. Two balls are chosen
randomly from the bag without replacement. Let 𝑝1 denote the
probability that the first ball is red and 𝑝2 the probability that 2nd ball
is red. Which of the following statement is true?

a) 𝑝1 > 𝑝2
b) 𝑝1 < 𝑝2

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𝑎−1
c) 𝑝2 =
𝑁−1
𝒂
d) 𝒑𝟐 =
𝑵

26) A particular men’s competition has unlimited number of rounds.

In each round, every participant has to complete a task. The
probability of a participating completing the task in a round is p. If a
participant fails to complete a task in a round, he is eliminated from
the competition. He participates in every round before being
eliminated. The competition begins with 3 participants. What is the
probability that all 3 participants are eliminated in the same round?

(𝟏−𝒑)𝟑
a)
𝟏−𝒑𝟑
1
b) (1-p)
3
1
c)
𝑝3
d) 𝑛𝑜𝑛𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑎𝑏𝑜𝑣𝑒

27) Three married couples sit down at a round table at which there
are 6 chairs. All if thee possible seating arrangements of the 6 people
are equally likely. The probability that each husband sits next to his
wife?

a) 2/15
b) 1/3
c) 4/15
d) None of the above

28) Considering an examinee answering a multiple choice

examination. For a particular question with 4 choices, the probability
1
that the examinee knows the answer is , the probability that she
3
makes the correct choice given that he knows the answer is 1, and the
probability that she makes the correct choice given that she does not
1
know the correct answer is . What is the probability of knowing the
4
correct answer given that she has made the correct answer?

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a) 1/3
b) ¾
c) 2/3
d) 5/6

29) Each of 4 economists is asked to prescribe one of the 4 economic

policies. Each economic is equally likely to prescribe any of the 4
different policies. What is the probability that each of the economists
prescribes the different policy?

a) 3/8
b) 1/256
c) 3/16
d) 3/32

30) There are 3 identical boxes, each with 2 drawers. Box A contains a
gold coin in each drawer. Box B contains a silver coin in each drawer.
Box C contains a gold coin in each drawer. A box is chosen, a drawer
opened and a gold coin is found. What is the probability that the
chosen box is found?

a) 2/3
b) ½
c) 1/3
d) ¾

31) Suppose 4 fair coins are tossed simultaneously. Suppose “E” is the
event “the number of heads strictly exceeds the number of tails” and F
is the event “the number of tails strictly exceeds the number of heads”.
What is the probability of the event E ∪ F?

a) 5/8
b) ½
c) ¾
d) 3/8

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32) Suppose two dice are rolled simultaneously. What is the

probability that the total number of spots on the upper faces of the
two dice is not divisible by 2,3 or 5?

a) 1/3
b) 2/9
c) 4/9
d) 7/16

33) A blood test to detect the presence of a certain disease successfully

detects the presence of a disease in 99 out of every 100 patients who
actually have the disease. But it falsely indicates the presence of the
disease in 1 out of every 100 healthy persons. 1% of the population
has the disease. The test is administered to a randomly selected
person. What is the probability that she has the disease given that her
result is positive?

a) 2/3
b) ½
c) ¾
d) 3/5

34) There is a box with ten balls. Each ball has a number between 1
and 10 written on it. No two balls have the same number. Two balls
are drawn (simultaneously) at random from the box. What is the
probability of choosing two balls with odd numbers?
a) 1/9
b) 1/2
c) 2/9
d) 1/3 [ISI 2009]

35) There are 3 identical boxes, each with two drawers. Box A contains
a gold coin in each drawer. Box B contains a silver coin in each
drawer. Box C contains a gold coin in one drawer & a silver coin in
other drawer. A box is chosen, a drawer opened and a gold coin is
found. What is the probability that the chosen box is A?

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a) 2/3
b) 1/3
c) ½
d) ¾

36) A survey of asset ownership in poor households in rural UP and

Bihar found that 40% of the households own a radio, 15% own a
television, 26% own both a radio and a bicycle, 5% own both a
television and a bicycle, and 1% own all three. If a randomly selected
poor household in these areas is found to own exactly one of these
three assets, what is the probability that it is a bicycle?

a) 20/23
b) 17/23
c) 15/23
d) 12/23

37) Consider the experiment of tossing two unbiased coin in

succession. What is the probability of obtaining two heads, given that
at least one of the coins comes up head?

a) ½
b) ¼
c) 1/3
d) 2/3

38) There are 3 women on the platform of a train station. The train that
they are waiting for has 5 coaches and each of them is equally likely to
enter any coach. What is the probability that they will enter the same
coach?

a) 12/25
b) 3/5
c) 3/125
d) 1/25

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39) Suppose a neighborhood has 90 Muslims and 10 Hindus. What is

the probability that 2 random selected persons from that
neighborhood will have same religion?

a) 0.5
b) 0.81
c) 0.9
d) 0.82

40) ICICI Bank collects data on 10000 respondents. Out of the 6800
men, 4200 have credit cards and out of the 3200 women, 2500 have
credit cards. Out of the men with credit cards, 1200 have unpaid
balance, whereas out of the women with credit cards, 1400 have
unpaid balance. What is the probability that an individual selected at
random is a men with a unpaid balance?

a) 0.68
b) 0.56
c) 0.12
d) 0.84

41) A box contains 100 balls. Some of them are white and the
remaining are red. Let X and Y denote the number of white and red
balls respectively. The correlation between X and Y is
a) 0
b) 1
c) -1
1 1
d) Some real numbers between − and [ISI 2009]
2 2

42) Amit has a box containing 6 red balls and 3 green balls. Anita has a
box containing 4 red balls and 5 green balls. Amit randomly draws one
ball from the box and put it into Anita’s box. Now Anita randomly
draws one ball from her box. What is the probability that the balls
drawn by Amit & Anita were of different colors?

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a) 1/3
b) 2/15
c) 4/15
d) 7/15

43) Two patients share a hospital room for 2 days. Suppose that on any
given day, a person independently picks up a airborne infection with a
1
probability of . An individual who is infected on the first day will
4
certainly pass it to the other patient on the second day. Once
contracted, the infection stays for at least 2 days. What is the
probability that both patients have contracted the infection by the end
of the second day?

a) 125/256
b) 121/256
c) 135/256
d) 131/256

8
44) A blood test has detects a given disease with a probability given
10
2
that the tested person actually has the disease. With probability , the
10
test incorrectly shows the presence of a disease in a disease free
1
person. Suppose that of the population has the disease. What is the
10
probability that the person tested actually has the disease if the test
indicates the presence of the disease?

a) 1
b) 9/13
c) 4/13
d) 7/13

45) Your teacher knows 6 jokes and in each class tells 2 jokes; each
joke has an equal chance of being selected. What is the probability
that, in a given lecture, at least 1 joke is told that was not told in the
previous class?

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a) 28/30
b) 14/30
c) 16/30
d) 12/30

46) Consider an experiment in which 5 fibers having different lengths

are subjecting to a testing process to learn the fiber which breaks 1 st.
The length of each fiber is 1, 2,3,4,5 inches respectively. Suppose the
probability that any fiber will be the 1st to break is proportional to the
length of that fiber. What is the probability that the length of the fiber
that breaks 1st is not more than 3 inches?

a) 3/5
b) 2/5
c) 1/3
d) 2/3

47) Three married couples sit down at a round table at which there are
six chairs. All of the possible seating arrangements of the six people
are equally likely. The probability that each husband sits next to his
wife is:
a) 2/15
b) 1/3
c) 4/15
d) None of the above. [ISI 2016]

48) A primary school has 6 classes, numbered from 1 to 6. Class 1 has

twice as many students as each of the other class. What is the
probability that a randomly selected student is from an odd numbered
class?

a) 10/21
b) 3/7
c) 8/21
d) 4/7

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49) A traffic light is on the way to university is red 40% of the time.
What is the probability of getting a red light in any 2 days out of 3
days?

a) 0.2
b) 0.29
c) 0.3
d) 0.24

50) A class has 6 students, randomly divided into 2 teams, A and B, for
a race. What is the probability that the 3 runners in team A will Come
1st, 2nd and 3rd?

3!
a)
6!
b) 1/6!
c) (𝟑!)(𝟐)/𝟔!
d) 3/6!

51) Suppose that each person out of a group of 4 friends is randomly

assigned to one of the 6 classes. What is the probability that no class
has more than one person from this group?

a) 6!/4!
b) 5/18
c) 4/6
d) 6/4!

52) Suppose that the probability that any particle emitted by

radioactive material will penetrate a given shield is 0.01. If 10
particles are emitted, what is the probability that exactly one of the
particles will penetrate the shield?

a) (0.01)(0.99)9
b) (0.1) (𝟎. 𝟗𝟗)𝟗
c) 0.1
d) 1/9

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53) Suppose that 80% of the statisticians are shy, whereas only 15% of
all economists are shy. Suppose that only 90% of the people at a large
gathering are economist and other 10% are statistician. If you meet a
shy person at random at the gathering, what is the probability that the
person is a statistician?

a) 8/9
b) 0.8
c) 0.08
d) 80/215
54) A bag contains N balls of which a (a<N) are red. Two balls are
drawn from the bag without replacement. Let p1 denote the
probability that the first ball is red and p2 the probability that the
second ball is red. Which of the following statements is true?
a) p1>p2
b) p1<p2
a−1
c) p2 =
N−1
𝐚
d) 𝐩𝟐 = [ISI 2016]
𝐍

55) A survey of asset ownership in poor household in rural UP and

Bihar found that 40% of the household own a radio, 15% own a
television & 60% owns a cycle. It also found that 5% of the households
own both radio and a television, 26% own both a radio and a bicycle,
5% own both a television and a bicycle and 1% all the three. If a
randomly selected poor household in these areas found to own
exactly one of these 3 assets, what is the probability that it is a
bicycle?

a) 20/23
b) 17/23
c) 15/23
d) 12/23

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56) Population of a city is 40% male and 60% female. Suppose also that
50% of males and 30% of females in the city smoke. The probability
that a smoker in the city is male is closet to
a) 0.5
b) 0.46
c) 0.53
d) 0.7

57) The nine digits 1, 2,… 9 are arranged in random order to form a
nine digit number, which uses each digit exactly once. Find the
probability that 1, 2 and 3 appear as neighbor in the increasing order?

a) 1/12
b) 1/72
c) 1/84
d) None
58) Let X be the set of positive integers denoting the number of tries it
takes the Indian cricket team to win the World Cup. The team has
equal odds for winning or losing any match. What is the probability
that they will win in odd number of matches?
a) 1/4
b) 1/2
c) 2/3
d) ¾ [ISI 2008]

59) Jai and Vijay are taking a statistics. The exam has only 3 grades A, B
and C. The probability that Jai gets a B is 0.3, the probability that Vijay
gets a B is 0.4, the probability that neither gets an A, but at least one
gets B is 0.1. What is the probability that neither gets a C but at least
one gets a B?

a) 0.1
b) 0.6
c) 0.8
d) Insufficient data to answer the question

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60) You have told that a family has 2 children and one of these is a
daughter. What is the probability that other child is also a daughter?

a) ½
b) 1/3
c) ¼
d) ¾

61) A number𝑋1 , is chosen at random from the set (1, 2). Then a
number𝑋2 is chosen at random from the set (1, 𝑋1 ). The probability
that 𝑋1 = 2, given that 𝑋2 =1?

a) 1
b) ½
c) 1/3
d) ¼

62) Two persons, A and B, shoot at a target. Suppose the probability

1
that A will hit is and the probability that B will hit the target is
3
1
.suppose A shoots 1st and hit the target. What is the probability that A
4
will hit the target for the 1st time in the 3rd shot?

a) 1/24
b) 1/12
c) 1/6
d) 1/3

63) Suppose player A has 5 coins and player B has 4 coins. Both players
toss their coins and observe the number that comes up head.
Assuming all the coins are fair, what is the probability that player A
obtains more head than player B?

a) ½
b) 4/9

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c) 5/9
d) 4/5

64) Suppose 10 athletes running in a race and exactly 2 of them are

taking banned drugs. An investigator randomly selects 2 athletes for
drug testing. What is the probability that none of the cheaters will be
caught?

a) 16/25
b) 4/5
c) 3/5
d) 28/45

65) Two players, A and B, will play a best of 7 table tennis match. The
two players are likely to win any of the games in the match. The
probability that the match will end up in 6 games?

a) Less than the probability that it will end up in 6 games.

b) Equal to the probability that it will end up in 6 games.
c) Greater than the probability that it will end up in 6 games.
d) None

66) In order to join the ‘gamers club’ Mr. A must have chosen a box
from two of the identical boxes in a room and draw one ball from the
chosen box. All he knows is that both the boxes are non empty and
have a mix of green and red balls. If the ball had he draw from the
chosen box is green, he is admitted to the club. You are given two
identical boxes, 50 red and 50 green balls and asked to allocate these
balls to the two boxes in order to maximize the A’s probability of
being admitted to the club, given that he randomly choose a box. If
you allocate these balls properly, what is the probability of A’s
admission to the club?

a) 1
b) 0.747
c) 0.547
d) 0.257
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67) Two women and men are needed to be seated randomly in a

circular table. Find the probability that both the women are not to be
seated together?

a) ½
b) 1/3
c) 2/5
d) 3/5

68) A fair coin is tossed until a head comes up for the 1st time. The
probability of this happening on an odd numbered toss?

a) ½
b) 1/3
c) 2/3
d) ¾

69) If 2 balanced dice are rolled, what is the probability that the sum
of dots obtained is even?

a) ½
b) ¼
c) 3/8
d) 1/3

70) Suppose, you are an editor of a magazine. Every day you get two
letters from your correspondents. Each letter is as likely to be from a
male as from a female correspondent. The letters are delivered by a
postman, who brings one letter at a time. Moreover, he has a ‘ladies
first’ policy; he delivers letter from a female first, if there is such a
letter. Suppose you have already received the first letter today and it
is from a female correspondent. What is the probability that the
second letter will also be from a female?

a) ½
b) ¼
c) 1/3
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d) 2/3

71) Suppose that we classify all households into one of two states rich
and poor. The probability of a particular generation being in either of
these states depends only on states in which their parents were. If a
parent is poor today, their child is likely to be poor with a probability
0.7. If a parent is rich today, their parent is likely to be poor with
probability 0.6. What is the probability that the grandson of a poor
man will be poor?

a) 0.72
b) 0.67
c) 0.62
d) 0.78 [DSE 2014]

72) There are 2 fair coins. Coin 1 is tossed 3 times. Let x be the number
of heads that occur. After this, coin 2 is tossed x times. Let y be the
number of heads that we get with coin 2. The probability p(x>2/y=1)
equals?

a) ½
b) 4/7
c) 2/3
d) 11/18

73) Four taste testers are asked to independently rank three different
brands of chocolate (A, B, C) . The chocolate each tester likes best is
given the rank 1, then 2 and then 3. After this, the assigned ranks for
each of the chocolates are summed across the testers. Assuming the
testers cannot really discriminate between the chocolates, so that
each is assigning her rank at random. The probability that chocolate A
receives a total sum of 4?

a) ¼

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b) 1/3
c) 1/27
d) 1/81

74) Suppose 0.1 percent of all the people in the town have tuberculosis
(TB). A TB test is available but it is not completely accurate. If a
person has TB, the test will indicate it with probability 0.999. If the
person does not have TB, the test erroneously indicates s/he does
with probability 0.002. For a randomly selected person, the test shows
s/he has TB. What is the probability that this person actually has TB?

a) 0.002/0.999
b) 1/1000
c) 1/3
d) 2/3

75) There are 3 red balls and 5 black balls in an urn. You draw two
balls in succession without replacing the first ball. The probability that
the second ball is red?

a) 2/7
b) 3/8
c) 5/7
d) ¼

76) Suppose 1/10 of the population has a disease. If a person has the
disease, then a test detects it with probability 8/10. If a person doesn’t
have the disease, then the test incorrectly shows the presence of the
disease with probability 2/10. What is the probability that the person
tested has the disease if the test indicates the presence of the disease?

a) 1
b) 9/13
c) 4/13
d) 7/13

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77) Two patients share a hospital room for 2 days. Suppose that on any
given day, a person independently picks up a airborne infection with a
1
probability of . An individual who is infected on the first day will
4
certainly pass it to the other patient on the second day. Once
contracted, the infection stays for at least 2 days. What is the
probability that fewer than two patients have the infection by the end
of the second day?

a) 125/256
b) 121/256
c) 135/256
d) 131/256

78) Consider the experiment of tossing two fair coins. Let the event A
be a head on the 1st time, the event C be a head on the 2nd coin, the
event D that both coins will match and the event G be two heads.
Which of the following is false?

a) C & D are statistically independent.

b) A & G are statistically independent
c) A & D are statistically independent
d) A & C are statistically independent.

79) 5 men and 5 women are seated randomly in a single circle of

chairs. The expected number of women sitting next to at least one
man equals?
a) 23/6
b) 25/6
c) 4
d) 17/4

80) 5 men and 5 women are seated randomly in a single row of chairs.
The expected number of women sitting next to at least one man
equals?

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a) 11/3
b) 13/3
c) 35/9
d) 37/9

81) An experiment has 10 equally outcomes. Let A and B be two non

empty events of the experiment. If A consists of 4 outcomes, then the
number of outcomes B must have so that A & B are independent?

a) 4
b) 3 or 9
c) 6
d) 5 or 10

82) Consider the following two player game. The player

simultaneously draw one sample each from a continuous random
variable X, which follows uniform [0, 100]. After observing the value
of her own sample, which is private information, player
simultaneously and independently chose one of the following : SWAP ,
RETAIN. If both players SWAP then they exchange their initially
drawn numbers. Otherwise, if at least one person chose RETAIN, both
of them retain their numbers. A player earns as many rupees as the
number she is holding at the end of the game.
Find the probability that the players will exchange their initially
drawn numbers.
a) 1
b) ½
c) 1/3
d) 0

83) In a clinical treatment with two treatment groups, the probability

of success in one treatment group is 0.5, and the probability that of
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success in other is 0.6. suppose that there are 5 patients in each group.
Assume that the outcome of all the patient are independent. Calculate
the probability that the first group will have at least as many success
as the 2nd group?
a) 0.5
b) 0.4957
c) 0.4986
d) 0.484

84) Let A and B be two events with positive probability each, defined
on the sample space. Find the correct answer?

a) P(A/B)> P(A) always

b) P(A/B)< P(A) always
c) P(A/B) >P(B) always
d) None

85) Let A and B be two events with positive probability each, defined
on the sample space. Find the correct answer?
a) A & B are necessarily independent
b) A & B are necessarily dependent
c) A & B are necessarily equal
d) None

86) The number of tosses of a coin that are needed so that the
probability of getting at least one head being 0.875?
a) 2
b) 3
c) 4
d) 5

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87) Suppose that the diameters of the bolts in a large box follow a
normal distribution with a mean of 2 centimeter and a s.d of 0.03
centimeter. Also, suppose that the diameter of the holes in the nut in a
large box follows a normal distribution with a mean of 2.02
centimeters and a s.d of 0.4 centimeter. A bolt and a nut will fit
together if the diameter of the hole in the nut is greater than the
diameter of the bolt and the difference b/w these diameters are not
greater than 0.05 centimeter. If a bolt and a nut is selected at random,
what is the probability that they will fit together?
a) 0.3756
b) 0.3825
c) 0.3812
d) 0.3462

88) A particular men’s competition has an unlimited number of rounds.

In each round, every participant has to complete a task. The
probability of a participant completing the task in a round is p. If a
participant fails to complete the task in a round, he is eliminated from
the competition. He participates in every round before being
eliminated. The competition begins with three participants. The
probability that all three participants are eliminated in the same
round is:
(𝟏−𝐩)𝟑
a)
𝟏−𝐩𝟑
1
b) (1 − p)
3
1
c)
p3
d) None of the above. [ISI 2016]

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Chapter-7
Pdf and cdf
1) If X has the distribution function
0 𝑥<1
1⁄ 1≤𝑥≤4
3
1
F(x) = ⁄2 4≤𝑥<6
5⁄ 6 ≤ 𝑥 < 10
6
{ 1 𝑥 ≥ 10 }
Find:
a) P(2 < 𝑥 ≤ 6) [Ans ½]
b) P(𝑥 = 4) [Ans 1/6]
c) PDF of x

2) If x has the distribution function

0 𝑥 < −1
1⁄ −1 ≤ 𝑥 < 1
4
1
F(x)= ⁄2 1≤𝑥<3
3⁄ 3≤𝑥<5
4
{1 𝑥 ≥ 5}

a) P(𝑥 ≤ 3) [Ans ¾]
b) P(x = 3)[Ans ¼]
c) P(x < 3) [Ans ½]
d) P(𝑥 ≥ 1) [Ans ¾]
e) P(−0.4 < 𝑥 < 4) [Ans ¾]
f) P(x = 5)[Ans ¼]

3) A consumer organization that evaluates new automobiles

customarily reports the number of major defects in each car
examined. Let X denote the number of major defects in a randomly
selected car of a certain type. The cdf of X is as follows:

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0 𝑥<0
. 06 0 ≤ 𝑥 < 1
. 19 1 ≤ 𝑥 < 2
. 39 2 ≤ 𝑥 < 3
F(x) =
. 67 3 ≤ 𝑥 < 4
. 92 4 ≤ 𝑥 < 5
. 97 5 ≤ 𝑥 < 6
{ 1 6 ≤𝑥

Calculate the following probability directly from the cdf:

a) P(2) that is P(X = 2) [Ans. 0.20]
b) P(X > 3) [Ans. 0.33]
c) P(2 ≤ 𝑥 ≤ 5) [Ans. 0.78]
d) P(2 < 𝑥 < 5) [Ans. 0.53]

4) Suppose that pdf of a random variable x is as follows:

4
(1 − 𝑥 2 ), 𝑓𝑜𝑟 0 < 𝑥 < 1
f(x)={3
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

1
i) P(x< ) (31/48)
2

1 3
ii) P( < 𝑥 < ) (144/256)
4 4

1
iii) P(x> ) (136/243)
3

5) Suppose that the pdf of the random variable x is as follows:

1
(9 − 𝑥 2 ) , −3 ≤ 𝑥 ≤ 3
f(x)={36
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

i) p(x < 0) (1/2)

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ii) p(−1 ≤ 𝑥 ≤ 1) (13/27)

iii) p(x > 2) (2/27)

6) Suppose that the pdf of the of the random variable x is as follows:

𝑐𝑥 2 , 1 ≤ 𝑥 ≤ 2
f(x)= {
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
i) Find the value of c such that this pdf is defined? (c=3/7 )

3
ii) P(x > ) (37/56)
2

7) Suppose that the pdf of the random variable x is as follows:

1
𝑥 ,0 ≤ 𝑥 ≤ 4
f(x)={8
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
1
i) find the value of t such that p(x ≤ 𝑡) = (t=2)
4

1
ii) find the value of t such that p(x ≥ 𝑡) = (t=2√𝟐)
2

8) Suppose that a random variable x has the uniform distribution on the interval [-2 , 8

𝟏
, 𝒇𝒐𝒓 − 𝟐 ≤ 𝒙 ≤ 𝟖
i) find the pdf of x {𝟏𝟎
𝟎 , 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆

ii) p(0 < 𝑥 < 7) (7/10)

9) Suppose that the pdf of a random variable x is as follows:

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𝑐𝑒 −2𝑥 , 𝑥 > 0
f(x)={
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

i) find the value of the constant c (c = -1)

ii) p(1< 𝑥 < 2) (𝒆−𝟐 − 𝒆−𝟒)

10) An ice cream seller takes 20 gallons of ice cream in her truck each day. Let x stand
the number of gallons that she sells. The probability is 0.1 that x = 20. If she doesn
Sell all 20 gallons; the distribution of x follows a continuous distribution with a pdf
the form
𝑐𝑥 , 0 < 𝑥 < 1
f(x)={
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
Find the value of c such that p(x< 20) = 0. 𝟗 (c=9/2000)

11) The value of k such that the following pdf function is a define:

𝑚𝑖𝑛. [(𝑥 ), (𝑘 − 𝑥 )], 0 < 𝑥 < 2

f(x)={ (k=2)
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

12) a) Show that

𝑓 (𝑥 ) = 𝑒 −𝑥 𝑓𝑜𝑟 0 < 𝑥 < ∞

Represents a probability density function.

b)Calculate the probability that x > 1. (𝒆−𝟏 )

13) The probability density of the random variable y is given by

1
𝑓(𝑦) = {8 (𝑦 + 1) 𝑓𝑜𝑟 2 < 𝑦 < 4}
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒
Find

i) P(Y< 3.2) (0.54)

ii) P(2.9< Y<3.2). ( 0.152)

14) The p.d.f. of the random variable X is given by

𝑐
𝑓𝑜𝑟 0 < 𝑥 < 4
𝑓 (𝑦) = {√𝑥 }
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒
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Find

a) The value of c; (1/4 )

1
b) P (𝑥 < ) (1/4)
4

c) P(X > 1) (1/2)

15) The probability density of the random variable Z is given by

2
( ) 𝑘𝑧𝑒 −𝑧 𝑓𝑜𝑟 𝑧 > 0
𝑓 𝑦 = { }
0 𝑓𝑜𝑟 𝑧 ≤ 0
Find k for this probability density.

16) The density function of the random variable X is given by

6𝑥(1 − 𝑥) 𝑓𝑜𝑟 𝑥 < 0 < 1
𝑔(𝑦) = { }
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒
Find
1
i) P(𝑋 < ) (5/32)
4
1
ii) P(𝑋 > ).
2
(1/2)

17) Find the distribution function of the random variable X whose

probability density is given by.
𝑥 𝑓𝑜𝑟 0 < 𝑥 < 1
𝑓 (𝑦) = {2 − 𝑥 𝑓𝑜𝑟 1 ≤ 𝑥 < 2}
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒

𝟎, 𝒙≤𝟎
𝒙𝟐
, 𝟎<𝑥<1
𝟐
𝒙𝟐
𝟐𝒙 − − 𝟏, 𝟏 ≤ 𝒙 < 2
𝟐
{ 𝟏, 𝒙≥𝟐

18) Find the distribution function of the random variable X whose

probability density is given by.

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𝑥
𝑓𝑜𝑟 0 < 𝑥 ≤ 4
2
1
𝑓𝑜𝑟 1 < 𝑥 ≤ 2
𝑓 (𝑦) = 2
3−𝑥
𝑓𝑜𝑟 2 < 𝑥 < 3
2
{ 0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒 }

𝟎, 𝒙≤𝟎
𝒙𝟐
, 𝟎<𝑥<1
𝟒
𝟏
(𝟐𝒙 − 𝟏), 𝟏<𝑥≤2
𝟒
𝟏
(𝟔𝒙 − 𝒙𝟐 − 𝟓), 𝟐 < 𝑥 < 3
𝟒
{ 𝟏, 𝒙≥𝟑

19) The distribution function of the random variable X is given by.

0 𝑓𝑜𝑟 0 < 𝑥 − 1
𝑥+1
𝐹 (𝑦) = { 𝑓𝑜𝑟 − 1 ≤ 𝑥 < 1}
2
1 𝑓𝑜𝑟 𝑥 ≥ 1

Find

1 1
i) P(− 𝑋 < ) (1/2)
2 2

ii) P(2 < 𝑋 < 3). (1)

20) The distribution function of the random variable Y is given by.

9
1 − 𝑓𝑜𝑟 𝑦 > 3
𝐹 (𝑦) = { 𝑦2 }
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒
Find

I) P(𝑌 ≤ 5) (16/25)

II) P(𝑌 > 8). (9/64)

21) The distribution function of the random variable X is given by.

𝑒 −𝑥
1 − (1 + 𝑥) 𝑓𝑜𝑟 𝑥 > 0
𝐹 (𝑦) = { }
0 𝑓𝑜𝑟 𝑥 ≤ 0

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Find

i) P(𝑋 ≤ 2) (1-3𝒆−𝟐 )

ii) 𝑃(1 < 𝑋 < 2) (2𝒆−𝟏 − 𝟒𝒆−𝟑 )

iii) P(𝑋 > 4). (5𝒆−𝟓 )

22) Find the distribution function of the random variable Z is given by.

0 𝑓𝑜𝑟 𝑧 < −2
𝑧+4
𝑓(𝑦) = { 𝑓𝑜𝑟 − 2 ≤ 𝑧 < 2}
8
1 𝑓𝑜𝑟 𝑥 ≥ 2

Find

i) P(𝑍 = −2) (1/4)

ii) 𝑃(𝑍 = 2) (1/4)

iii) P(−2 < 𝑍 < 1) (3/8)

iv) 𝑃(0 ≤ 𝑍 ≤ 2). (1/2)

23) The probability density of a random variable is

𝑓 (𝑥 ) = 𝑎𝑥 2 𝑒𝑥𝑝 −𝑘𝑥 (𝑘 > 0,0 ≤ 𝑥 ≤ ∞)
Then, a equals
𝒌𝟑
a)
𝟐
𝑘
b)
2
𝑘2
c)
2
d) k [ISI 2008]

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24) A continuous random variable X has a probability density function

f(x) = 3x2
with 0 ≤ x ≤ 1. If P(X ≤ a) = P(x >a), then a is:
1
a)
√6
1
1 2
b) ( )
2
1
c)
2
𝟏
𝟏 𝟑
d) ( ) [ISI 2009]
𝟐

25) If a probability density function of a random variable X is given by

𝑓 (𝑥 ) = 𝑘𝑥 (2 − 𝑥 ), 0 ≤ 𝑥 ≤ 2, then mean of X is
a) 1/2
b) 1
c) 1/5
d) ¾ [ISI 2009]
26) A fair coin is tossed repeatedly until a head is obtained for the first
time. Let X denotes the number of tosses that are required. The value
of the distribution function of X at 3 is

a) 3/4
b) 1/2
c) 7/8
d) 7/16 [DSE 2010]

27) Suppose θ is a random variable with uniform distribution on the

interval [-π/2, π/2]. The value of the distribution function of the
random variable X = sin θ at x∈ [-1,1] is

a) sin−1(x)
b) sin−1(x) + π/2
c) 𝐬𝐢𝐧−𝟏(𝐱) /𝛑 + 𝟏/𝟐
d) sin−1(x) /π + π/2 [DSE 2010]
28) The next three questions are based on the following data. The
number of loaves of bread sold by a bakery in a day is a random

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variable X. The distribution of X has a probability density function f is

given by

kx if x ∈ [0, 5)
f(x) = {k(10 − x) if x ∈ [5, 10) }
0, if x ∈ [10, ∞)

1) As f is a probability density function, the value of k is

a) 0
b) -2/25
c) 1/25
d) 2/75

2) Let A be the event that X ≥ 5 and let B be the event that X ∈ [3, 8]. The
probability of A conditional on B is

a) 16/37
b) 21/37
c) 25/37
d) 1

3) Events A and B are

a) Not independent
b) Independent
c) Conditionally independent
d) Unconditionally independent [DSE 2010]

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CHAPTER-8
Expectation and variance

1) If a integer is chosen between 1 and 100 at random, what is the

expected value

a) 48.5
b) 49.5
c) 50.5
d) 51.5

2) In a class of 50 students, the number of students 𝑛𝑖 of age I is shown in

the following table:

Age 𝑛𝑖

18 20

19 22

20 4

21 3

25 1

If a student is to be selected at random from the class, what is the

expected value of his age

a) 18.85
b) 18.86
c) 18.87
d) 18.88
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3) Suppose that one word is to be selected at random from the sentence

“THE GIRL PUT ON HER BEAUTIFUL RED HAT”. If x denotes the
number of letters in the word that is selected, what is the value of
E(x)

a) 3.50
b) 3.75
c) 4.50
d) 4.75

4) Suppose that one letter is to selected at random from the 30 letters in

the sentence in exercise 4. If Y denotes the number of letters in the
word in which the selected letter appears, what is the value of E(Y)

a) 4.847
b) 4.857
c) 4.867
d) 4.877

5) Suppose that X and Y have a continuous joint distribution for which

the joint p.d.f. is as follows:
12𝑦 2 , 0 ≤ 𝑦 ≤ 𝑥 ≤ 1,
f(x,y)={
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
find the value of E(XY)
a) -1/2
b) -1
c) ½
d) 1

6) Suppose that a point is chosen at random on a stick of unit length and

the stick is broken into two pieces at that point. Find the expected
value of the length of the longer piece

a) 0
b) ½

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c) 3/2
d) ¾

7) Suppose that the random values 𝑋1,….,𝑋𝑛 𝑓𝑜𝑟𝑚 a random sample of

size n from the uniform distribution on the interval [0, 1]. Let
𝑌1 =min.{𝑋1 , … . . , 𝑋𝑛 }, and let 𝑌𝑛 = 𝑚𝑎𝑥. {𝑋, … . . , 𝑋𝑛 }. Find the E(𝑌1 )

𝟏
a) E(𝒀𝟏 ) =
𝒏+𝟏
𝑛+1
b) E(𝑌1) =
𝑛
𝑛
c) E(𝑌1) =
𝑛+1
d) None of the above

8) Suppose that the random values 𝑋1,….,𝑋𝑛 𝑓𝑜𝑟𝑚 a random sample of

size n from the uniform distribution on the interval [0, 1]. Let
𝑌1 =min.{𝑋1 , … . . , 𝑋𝑛 }, and let 𝑌𝑛 = 𝑚𝑎𝑥. {𝑋, … . . , 𝑋𝑛 }. Find the E(𝑌𝑛 )

1
a) 𝐸 (𝑦𝑛 ) =
𝑛+1
𝑛+1
b) 𝐸 (𝑦𝑛 ) =
𝑛
𝒏
c) 𝑬(𝒚𝒏 ) =
𝒏+𝟏
d) None of the above

9) A stock currently sells for $110 per share. Let the price of the stock at
the end of the one year period be X, which would take the values
either $100 or $300. Suppose that you have the option to buy shares
of this stock at $150 per share at the end of that one year period.
Suppose that money could earn 5.8% risk free return over that one
year period. Find the RISK NEUTRAL PRICE FOR THE OPTION TO
BUY THE SHARE

a) 11.61
b) 11.62
c) 12.61
d) 12.62

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10) Suppose that one word is to be selected at random from the sentence
“THE GIRL PUT ON HER BEAUTIFUL RED HAT”. If x denotes the
number of letters in the word that is selected, what is the value of
var(X)

a) 4
b) 65/16
c) 66/16
d) 67/16

11) Suppose that X is a random variable for which E(X)= 𝜇 and

var(X)= 𝜎 2 , then E[X(X-1)] would be

a) 𝜇(𝜇 + 1) − 𝜎 2
b) 𝜇(𝜇 − 1) − 𝜎 2
c) 𝜇(𝜇 + 1) + 𝜎 2
d) 𝝁(𝝁 − 𝟏) + 𝝈𝟐

12) Let X be a random variable for which E(X)=𝜇 and var(X)=𝜎 2 , and let
c be an arbitrary constant, then E[(𝑋 − 𝑐)2] would be

a) (𝜇 − 𝑐 )2 − 𝜎 2
b) (𝝁 − 𝒄)𝟐 + 𝝈𝟐
c) (𝜇 + 𝑐 )2 − 𝜎 2
d) (𝜇 + 𝑐 )2 + 𝜎 2

13) Suppose that X and Y are independent random variables whose

variances exist and such that E(X)=E(Y), then E[(𝑋 − 𝑌)2 ] would be

a) 𝑉𝑎𝑟 (𝑋) − 𝑉𝑎𝑟 (𝑌)

b) −𝑉𝑎𝑟 (𝑋) − 𝑉𝑎𝑟 (𝑌)
c) −𝑉𝑎𝑟 (𝑋) + 𝑉𝑎𝑟 (𝑌)
d) 𝑽𝒂𝒓(𝑿) + 𝑽𝒂𝒓(𝒀)

14) Let X have the p.d.f. f(x)=𝑒 −𝑥 for x ≥ 0 𝑎𝑛𝑑 𝑓(𝑥 ) = 0 𝑓𝑜𝑟 𝑥 < 0. Find
the IQR of x

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a) 1.0986
b) 1.0896
c) 1.8906
d) 1.9806

15) Let X have the binomial distribution with parameters 5 and 0.3. Find
the IQR of X

a) 0
b) 1
c) 2
d) 3

16) Let X be a random variable whose IQR is 𝛼. 𝑙𝑒𝑡 𝑌 = 2𝑋, then

𝐼𝑄𝑅 𝑜𝑓 𝑌 𝑖𝑠

a) 𝛼
b) 𝟐𝜶
c) 3𝛼
d) 4𝛼

17) For all numbers a and b such that a < b, find the var(X)of the uniform
distribution on the interval [a, b]

(𝑏−𝑎)2
a)
6
(𝑏+𝑎)2
b)
6
(𝒃−𝒂)𝟐
c)
𝟏𝟐
(𝑏+𝑎)2
d)
12

18) Suppose that X has the uniform distribution on the interval [0, 1].
Find the E(X)

a) 0
b) ½
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c) 3/2
d) ¾

19) Suppose that X has the uniform distribution on the interval [0, 1].
Find the Var(X)

a) ¼
b) 1/6
c) 1/10
d) 1/12

20) If the probability density function is given by

𝑥
,0 < 𝑥 ≤ 1
2
1
,1 < 𝑥 ≤ 2
F(x)= 2
3−𝑥
,2 < 𝑥 < 3
2
{ 0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

Find the expected value of g(x)=𝑥 2 − 5𝑥 + 3

a) -5/6
b) -11/6
c) 5/6
d) 11/6

21) A random variable X has the following probability distribution:

X -2 -1 0 1 2 3

P(X = x) 0.1 K 0.2 2k 0.3 K

Then, the value of k

a) 0.1
b) 0.2
c) 0.3
d) 0.4

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22) A random variable X has the following probability distribution:

X -2 -1 0 1 2 3

P(X = x) 0.1 K 0.2 2k 0.3 K

Then, the E(X) is

a) 0.2
b) 0.4
c) 0.6
d) 0.8

23) A random variable X has the following probability distribution:

X -2 -1 0 1 2 3

P(X = x) 0.1 K 0.2 2k 0.3 K

Then, the V(X)is

a) 2.14
b) 2.16
c) 2.18
d) 2.2

24) Let Pr(X=2)=1. Define μ2n = E(X – μ)2n, μ = E(X). then:

a) μ2n = 2
b) μ2n = 0
c) μ2n> 0
d) none of the above

25) A box contains 6 tickets. Two of the tickets carry a prize of Rs. 5 each;
the other four prizes are of Re. 1 each. If one ticket is drawn, what is
the expected value of the price

a) 2.30
b) 2.31
c) 2.32
d) 2.33

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26) A company estimates the net profit on a new product, it is launching,

to be Rs. 30 lacs during the 1st year if it is unsuccessful, Rs. 10 lacs if it
is moderately successful, and a loss of Rs. 10 lacs if it is unsuccessful.
The firm assigns the following probabilities to 1st year for the product
successful 0.15 – moderately successful – 0.25. What is the expected
value of 1st year net profit for this product?

a) 1.00
b) 2.00
c) 3.00
d) None of the above

27) A company estimates the net profit on a new product, it is launching,

to be Rs. 30 lacs during the 1st year if it is unsuccessful, Rs. 10 lacs if it
is moderately successful, and a loss of Rs. 10 lacs if it is unsuccessful.
The firm assigns the following probabilities to 1st year for the product
successful 0.15 – moderately successful – 0.25. What is the standard
deviation of 1st year net profit for this product?

a) 12.8
b) 13.8
c) 14.8
d) None of the above

28) A maker of soft drinks is considering the introduction of a new brand.

He expects to sell 50, 000 to 1, 00, 000 bottles of its soft drink in
given period according to the following probability distribution
No. of 50 60 70 80 90 100
bottles(in
‘000)
Probability 0.13 0.20 0.35 0.22 0.08 0.02

If the product is launched, he will have to incur a fixed cost of Rs. 48,
000. However, each bottle sold would give him a profit of Rs. 1.25.
Should he introduced the product
a) Net profit = 39, 250; hence to be introduced
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b) Net profit = 39, 250; hence need not to be introduced

c) Net profit = 48, 250; hence to be introduced
d) Net profit = 48, 250; hence need not to be introduced

29) our operator has a bus that can accommodate tourists. The
operator knows that tourists may not show up, so he sells 21 tickets.
The probability that an individual tourist will not show up is 0.02,
independent of all other tourist. Each ticket costs 50, and is non –
refundable if a tourist fails to show up. If a tourist show up and a seat
is not available, the tour operator has to pay 100 to that tourist. The
expected revenue of the operator?

a) 950
b) 967
c) 976
d) 985

30) Ms. A selects a number X randomly from the uniform distribution

on [0, 1]. Then Mr. B repeatedly, and independently, draws numbers
𝑦1 , 𝑦2 …. from the uniform distribution on [0,1] until he gets a number
larger than X/2, then stops. The expected number of draws that Mr. B
makes equal
a) 2ln2
b) ln2
c) 2/e
d) 6/e
31) The expected sum of the numbers Mr. B draws, given X=x, equals
a) ln2
b) 1/(1-1/2)
c) 1/(2-x)
d) 3/(1-1/2)
32) 5 men and 5 women are seated randomly in a single circle of
chairs. The expected number of women sitting next to at least one
man equals?

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e) 23/6
f) 25/6
g) 4
h) 17/4
33) 5 men and 5 women are seated randomly in a single row of chairs.
The expected number of women sitting next to at least one man
equals?
e) 11/3
f) 13/3
g) 35/9
h) 37/9
34) Let X be a random variable such that E (𝑋)2 = 𝐸 (𝑋) = 1. Then
E(𝑋)100
a) 1
b) 2100
c) 0
d) None

35) The continuous random variable X has probability density f(x)

where
a if 0 ≤ x < 𝑘
f(x) = {b if k ≤ x ≤ 1 }
0 otherwise
where a>b>0 and 0<k<1 .Then E(X) is given by
b(1−a)3
a)
2a(a−b)
1
b)
2
a−b
c) (a+b)

𝟏−𝟐𝐛+𝐚𝐛
d) [ISI 2016]
𝟐(𝐚−𝐛)

36) An unbiased coin is tossed until a head appears. The expected

number of

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tosses required is
(a) 1,
(b) 2,
(c) 4,
(d) ∞.
37) Suppose a discrete random variable X takes on the value 0, 1, 2,
….,n. with frequencies proportion to binomial coefficient
(𝑛0), (𝑛1), … … (𝑛𝑛) respectively. Then the mean (𝜇) and the variance(𝜎 2 )
of the distribution are

a) Mean =n/2, variance =n/2

b) Mean =n/4, variance =n/4
c) Mean =n/2, variance =n/4
d) Mean =n/4, variance =n/2

38) X is a random variable. Which of the following statements is always

true?
a) The expectation of X exists.
b) The distribution of X is strictly increasing.
c) X has a median.
d) None
39) Suppose a random variable X takes value -2, 0, 1, 4 with
probabilities 0.4, 0.1, 0.3, 0.2.
a) The unique median is 1
b) The unique median is 0
c) The unique median of the distribution lies b/w 0 and 1.
d) The distribution has multiple medians
40) Let X and Y be random variables with V(X)=2, V(Y)=4 and cov(X,
Y)=2. Let W=2X+3Y. then,V(W) IS
a) 68
b) 44
c) 48

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d) 16
41) A continuous random variable has the p.d.f f(x)=1/3, for x b/w -1
and 2 and 0 elsewhere. Its mean, variance and median?
a) (1, ¾, ½)
b) (1/2, ¾, ½)
c) (1/2, 1, 1)
d) (1/2, 1, 1/2)
42) Let Pr(X=2)= 1. Define 𝜇2𝑛 = 𝐸(𝑋 − 𝜇)2𝑛 , 𝜇 = 𝐸(𝑋). Then:
a) 𝜇2𝑛 = 2
b) 𝝁𝟐𝒏 = 𝟎
c) 𝜇2𝑛 > 0
d) None of the above

43) The continuous random variable X has probability density f(x)

where

𝑎 ,0 ≤ 𝑥 ≤ 𝑘
f(x)={ 𝑏 , 𝑘 ≤ 𝑥 ≤ 1
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
where a> 𝑏 > 0 𝑎𝑛𝑑 0 < 𝑘 < 1. Then E(x)

𝑏(1−𝑎)2
a)
2𝑎(𝑎−𝑏)
1
b)
2

c) a-b/a+b
d) 1-2b+ab/2(a-b)

44) Let X be a random variable with p.d.f

𝑐
,𝑥 ≥ 𝑐
𝑓 (𝑥 ) = {𝑥 2
0, 𝑥 < 𝑐

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The E(x) would be

a) 0
b) ∞
c) 1/c
1
d)
𝑐2

45) If a probability density function of a random variable X is given by

f(x)=kx(2-x), 0≤ 𝑥 ≤ 2, then mean of X?
a) ½
b) 1
c) 1/5
d) ¾
46) Let 𝑦 = (𝑦1 , … …. , 𝑦𝑛 ) be a set of n observations with 𝑦1 ≤ 𝑦2 ≤
⋯ . ≤ 𝑦𝑛 . let 𝑦 ′ = (𝑦1 , 𝑦2 , … , 𝑦𝑗 + 𝛿, … 𝑦𝑘 − 𝛿, … 𝑦𝑛 ) where 𝑦𝑘 − 𝛿 >
𝑦𝑘−1 > ⋯ > 𝑦𝑗+1 > 𝑦𝑗 + 𝛿, 𝛿 > 0. Let 𝜎: standard deviation of y and 𝜎 ′
: standard deviation of 𝑦 ′ . Then

a) 𝜎 < 𝜎′
b) 𝝈′ < 𝜎
c) 𝜎′ = 𝜎
d) Nothing can be said.

47) Let y denote the number of heads obtained when 3 coins are
tossed. The variance of 𝑌 2 is?
a) 6.5
b) 7.0
c) 7.5
d) 8.0
48) let X be a Normally distributed random variable with mean 0 and
variance 1. Let ϕ(.) be the cumulative distribution function of the
variable X. then the expectation of ϕ(X) is
1
a) −
2
b) 0
𝟏
c)
𝟐

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d) 1 [ISI 2010]

49) A continuous random variable x has the following probability

density function:
α x0 α+1
f(x) = ( ) for x > x0 , α > 1
x0 x
The distribution function and the mean of x are given respectively by
x α α−1
a) 1 − ( 0 ) , 0 x
x α
x0 −α α−1
b) 1 − ( ) , x0
x α
𝐱 −𝛂 𝛂𝐱𝟎
c) 𝟏 − ( ) ,
𝐱𝟎 𝛂−𝟏
x α αx0
d) 1 − ( ) , [ISI 2011]
x0 α−1

50) Suppose a random variable X takes values –2, 0, 1 and 4 with

probabilities 0.4, 0.1, 0.3 and 0.2 respectively.

a) The unique median of the distribution is 1

b) The unique median of the distribution is 0
c) The unique median of the distribution lies between 0 and 1
d) The distribution has multiple medians [DSE 2010]

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Chapter-9
Probability distributions

1) Suppose that X is a random variable such that E(𝑥 𝑘 )=1/3 for k = 1, 2,

….. . Assuming that there can’t be more than one distributions with the
same sequence of moments, determine the distribution of x?

2
𝑝(𝑥 = 0) =
a) { 3
𝑝(𝑥 = 1) = 1
𝟐
𝒑(𝒙 = 𝟎) =
𝟑
b) { 𝟏
𝒑(𝒙 = 𝟏) =
𝟑
1
𝑝(𝑥 = 0) =
3
c) { 2
𝑝(𝑥 = 1) =
3
d) None of the above

2) Suppose that the probability that a certain experiment will be

successful is 0.4 and let X denote the number of success that are
obtained in 15 independent performance of an experiment. Find the
probability p(6 ≤ 𝑥 ≤ 9)?

a) 0.5430
b) 0.5530
c) 0.5630
d) None of the above

3) X~ 𝐵 (𝑛, 𝑝). The maximum value of var (X) ?

a) n/4
b) n
c) n/2
d) 1/n

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4) A coin is tossed 9 times for which the probability of head is 0.6. Find
the probability of obtaining an even number of heads?

a) 0.5500
b) 0.5000
c) 0.4500
d) None of the above

5) letx = r be the mode of the distribution with probability mass

𝑛
function 𝑝(𝑥 ) = ( ) 𝑝 𝑥 (1 − 𝑝)𝑛−𝑥 .then which of the following
𝑥
inequalities hold.
a) (𝒏 + 𝟏)𝒑 − 𝟏 < 𝑟 < (𝑛 + 1)𝑝
b) 𝑟 < (𝑛 + 1)𝑝 − 1
c) 𝑟 > (𝑛 + 1)𝑝
d) 𝑟 < 𝑛𝑝 [ISI 2008]

6) Everyone shows that 20% of the people reserving a table at a certain

restaurant never shown up. If the restaurant has 50 tables and takes
52 reservations, then the probability that it will be able to
accommodate everyone?

209
e) 1-
552
𝟒 𝟓𝟐
f) 1-14× ( )
𝟓
4 50
g) ( )
5
1 50
h) ( ) [ISI 2007]
5

7) A certain electronic system contains 10 components. Suppose that the

probability that each component will fail is 0.2 and the component
will fail independently of each other. Given that at least one of the
component will failed, what is the probability that at least two of the
component will failed?

a) 0.6393

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b) 0.6663
c) 0.6993
d) None of the above

8) Suppose that the random variables 𝑋1 , … 𝑋𝑛 form n Bernoulli trials

with parameter p. Determine the conditional probability that 𝑋1, given
that ∑𝑛𝑖=1 𝑋𝑖 = 𝑘 (k=1,2,..n)?

a) k/n
b) (k/n)2
c) 1/n
d) none of the above

9) Let the random variable X follow a binomial distribution with

parameter n and p where n is a positive and 0 ≤ p ≤ 1. Suppose
further that probability of X=0 is the same as the probability of X=1.
What is the value of p?
a) 1/n
b) 1/n+1
c) n/n+1
d) n-1/n+1

10) In a clinical treatment with two treatment groups, the probability

of success in one treatment group is 0.5, and the probability that of
success in other is 0.6. suppose that there are 5 patients in each group.
Assume that the outcome of all the patient are independent. Calculate
the probability that the first group will have at least as many success
as the 2nd group?

a) 0.4759
b) 0.4957
c) 0.4597
d) None of the above

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11) Suppose that 90% of all batteries from a certain supplier have
acceptable voltages. A certain type of supplier has acceptable voltages.
A certain type of flashlight requires two type-D batteries, and the
flashlight will work only if both its batteries have acceptable voltages.
Among 10 randomly selected flashlights, what is the probability that
at least nine will work, given that the events are independent?

a) 0.307
b) 0.407
c) 0.507
d) None of the above

12) 20% of all telephones of a certain type are submitted for service
while under warranty. Of these, 60% can be repaired, whereas the
other 40% must be replaced with new units. If a company purchases
10 of these telephones, what is the probability that exactly two will
end up being replaced under warranty?

a) 0.1178
b) 0.1278
c) 0.1378
d) 0.1478

13) In a binomial distribution consisting of 5 independent trials,

probabilities of 1 and 2 successive trials are 0.4096 and 0.2048
respectively. Find the parameter p of the distribution.

a) p=(0.4)
b) p=(0.3)
c) p=(0.2)
d) p=(0.1)

14) The mode of the binomial distribution B(7, 1/3)?

a) 1
b) 2
c) 3
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d) None of the above

15) Suppose that we conduct n independent Bernoulli trials, each with
probability of success p. If k is such that the probability of k success is
equal to the probability of k+1 success, then?

a) (n+1)p=n(1+p)
b) np=(n-1)(1+p)
c) np is a positive integer.
d) (n+1)p is a positive integer.

16) Consider the square with vertices (0, 0), (0, 2), (2, 0), (2, 2). Five
points are independently and randomly chosen from the square. If a
point (x, y) satisfies x+2y≤2, then a pair of dice are rolled. Otherwise
a single die is rolled. Let N be the total number of die are rolled. For
5 ≤ 𝑛 ≤ 10, the probability that N=n?

5 1 1
a) (𝑛−5)( )𝑛−5( )5−(𝑛−5)
2 2
𝑛 𝑛−10
b) (𝑛−10)(1/4) (3/4)𝑛
𝒏
c) (𝒏−𝟓)(𝟏/𝟒)𝒏−𝟓 (𝟑/𝟒)𝟏𝟎−𝒏
𝑛
d) (𝑛−10)(1/2)𝑛−10 (1/2)𝑛

17) Suppose a discrete random variable X takes on the value 0, 1, 2,

….,n. with frequencies proportion to binomial coefficient
(𝑛0), (𝑛1), … … (𝑛𝑛) respectively. Then the mean (𝜇) and the variance(𝜎 2 )
of the distribution are

e) Mean =n/2, variance =n/2

f) Mean =n/4, variance =n/4
g) Mean =n/2, variance =n/4
h) Mean =n/4, variance =n/2

18) Out of 1000 families of 3 children each, how many families would you
expect to have two boys and 1 girls assuming that boys and girls are
equally likely?

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a) 325
b) 350
c) 330
d) None of the above

19) Let{𝑋1 } be a sequence of i.i.d random variables such that 𝑋𝑖 =

1with probability p = 0 with probability 1 – p
1if ∑ni=1 X1 = 100
Define y= { } then 𝐸(𝑦 2 ) is
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
a) ∞,
𝒏
b) ( ) 𝒑𝟏𝟎𝟎 (𝟏 − 𝒑)𝒏−𝟏𝟎𝟎
𝟏𝟎𝟎
c) 𝑛 𝑝,
d) (𝑛 𝑝)2.

20) In a binomial distribution with 6 independent trials, the probability

of 3 and 4 successes is found to be 0.2457 and 0.0819 respectively.
Find the parameters p and q of the binomial distribution?

a) p=(5/13) , q=(8/13)
b) p=(4/13) , q=(9/13)
c) p=(9/13) , q=(4/13)
d) none of the above

21) How many dice must be thrown so that there is better than even
chance of obtaining at least one 6?

a) n< 4
b) n> 4
c) n≤ 4
d) n≥ 𝟒

22) The number of tosses of a coin that are needed so that the probability
of getting at least one head being 0.875?

a) n=1

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b) n=2
c) n=3
d) n=4

23) On a average, a waiter gets no tip from two of his customers on

Saturdays. What is the probability that on next Saturday, he will get no
tip from three of his customers?

9
a) 𝑒 −3
2
b) 2𝑒 −3
𝟒 −𝟐
c) 𝒆
𝟑
−2
d) 3𝑒 [DSE 2013]

24) Let X have the uniform distribution on the interval [a, b] and c is
greater than 0. Prove that cx+d has the uniform distribution on the
interval?

a) [cd + a, cd + b]
b) [cb + d, ca + d]
c) [ca + d, cb + d]
d) None of the above

25) Suppose that in a quiz there are 30 participants. A question is given

to all participants and the time allowed to answer it is 25 seconds.
Find the probability of participant respond within 6 seconds?

a) 3/25
b) 4/25
c) 7/25
d) 6/25

26) Suppose that a random variable N is taken from 690 to 850 minutes
in uniform distribution. Find the probability that N is greater than
790?

a) 0.375

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b) 0.275
c) 0.575
d) 0.475
27) Two independent random variables X and Y are uniformly
distributed in the interval [0,1]. For a z∈ [0,1], we are told that
probability that max(X,Y) ≤ z is equal to the probability that min(X,Y)
≤ (1 – z). what is the value of z?
a) 1/2
b) 1/√𝟐
1
c) Any value in [ , 1]
2
d) None of the above [ISI 2014]

28) The time in minutes that A takes to checkout at her local supermarket
follows a continuous uniform distribution over the interval [3, 9].

Given that A has already spent 4 minutes at the checkout then, find
the probability that she will take a total of less than 6 minutes to
checkout.
a) 4/5
b) 1/5
c) 2/5
d) None of the above

29) Suppose X is a random variable, which follows uniform [-1, 1]. Find
the covariance b/w X & 𝑋2 ?
a) 1
b) ¼
c) 1/8
d) 0

30) Suppose X AND Y are independent random variables that follow

the uniform distribution on the interval [0, 1]. Let Z = min{X, Y}
1) P(Z< 0.5)
a) 0.25
b) 0.5
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c) 0.625
d) 0.75
2) P(Z< 0.5/X=0.75)
a) 0.25
b) 0.5
c) 0.625
d) Undefined
31) Consider the system of equation
αx + βy = 0
μx + vy = 0

α, β, μ and v are i.i.d random variable. Each of them takes value 1 and
0 with equal probability.
Statement A: The probability that the system of equations has a
unique solution is 3/8.
Statement B: The probability that the system of equations has at least
on solution is 1.
e) Both the statements are correct
f) Both the statements are false
g) Statement A is correct but B is false
h) Statement B is correct but A is false [DSE 2012]

32) In a game, player select sticks at random from a box containing a

large number of sticks of different lengths. The length of a randomly
chosen stick has a continuous uniform distribution over the interval
[7, 10].

A stick is selected at random from the box, what is the probability

that the stick is shorter than 9.5 cm; to win a bag of sweets, a
player must select 3 sticks and wins if the length of the longest
stick is more than 9.5cm then what is the probability of winning a
bag of sweets and to win a soft toy, a player must select 6 sticks
and wins the toy if more than 4 of the sticks are shorter than
7.6cm then what is the probability of winning a soft toy
a) (1/6) (1/5) (1/5)
b) (5/6) (1/6) (1/5)
c) (1/6) (1/6) (1/5)

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d) (5/6) (1/6) (5/6)

33) Suppose that you are conducting a quiz and post a question to the
audience of 20 competitors. The time allowed to answer the question
is 30 second. How many persons are likely to respond within 5
seconds?

a) 0
b) 1
c) 2
d) 3

34) Data collected at IGI AIRPORT suggests that an exponential

distribution with mean value 2.725 hours is good model for rainfall
duration.

What is the probability that the duration of a particular rainfall event

at this location is at least 2 hours; at most 3 hours; b/w 2 and 3
hours; what is the probability that rainfall duration exceeds the
mean value by more than 2 sds and what is the probability that the
rainfall duration is less than the mean value by more than 1 sd?
a) (0.480)(0.667) (0.147) (0.050) (0)
b) (0.487)(0.676) (0.147) (0.50) (0)
c) (0.480)(0.667) (0.147) (0.050) (0)
d) (0.478)(0.667) (0.174) (0.050) (0)

35) The amount of time that a watch will run without having to be reset
is a random variable having an exponential distribution with 𝜃 =
120 𝑑𝑎𝑦𝑠. Find the probabilities that such a watch will have to be
reset in less than 24 hours and not have to be reset in at least 180
days?

a) (0.1813; 0.2231)
b) (0.1813; 0.2321)
c) (0.1318; 0.2231)
d) (0.1183; 0.2213)

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36) Suppose that the time one spends in bank is exponentially distributed
with mean = 10 minutes. What is the probability that customer will
spend more than 15 minutes in bank?

a) 0.12
b) 0.22
c) 0.32
d) None of the above

37) If jobs arrive every 15 seconds on average, ƛ=4 per minute, what is
the probability of waiting less than or equal to 30 seconds?

a) 0.96
b) 0.76
c) 0.86
d) 0.56

38) Calls arrive at an average rate of 12 per hour. Find the probability
that a call will occur in the next 5 minutes given that you have
already waited 10 minutes for a call?

a) 0.61
b) 0.60
c) 0.63
d) 0.62

39) The lifetime T (years) of an electronic component is a continuous

random variable with a pdf given by

f(t)=𝑒 −𝑡 , 𝑡 ≥ 0

Find the lifetime L which a typical component is 60% certain to

exceed. If 5 components are sold to a manufacturer, find the
probability that at least at least one of them will have a lifetime
less than L years?
a) 0.95
b) 0.94
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c) 0.93
d) 0.92

40) If X has an exponential distribution with parameter ƛ, what is the

probability that a random variable X is less than its expected value?

a) 1-exp(-1)
b) exp(-2)
c) exp(-1)
d) 1-exp(-2)

41) Let X be an exponential random variable with parameter

ƛ=ln(3).Compute the probability p (2≤ 𝑋 ≤ 3)?

a) 3−3 − 3−2
b) 𝟑−𝟐 − 𝟑−𝟑
c) 3−2 − 3−4
d) None of the above

42) The P.D.F of a normal distribution is

−(𝑥−5)2
f(x)=k.exp[ ]
18

Then, find the value of k, its mean and standard deviation of the
distribution?
1
a) k=( );Mean=(5) and S.d=(3)
√2𝜋
𝟏
b) k=( );Mean=(5) and S.d=(3)
𝟑.√𝟐𝝅
c) k=(3. √2𝜋);Mean=(3) and S.d=(5)
d) none of the above

43) If a random sample of 25 distributions is taken from the normal

distribution with mean 𝜇 and s.d. 2, what is the probability that the
sample mean will lie within one unit of 𝜇?

a) 0.9276
b) 0.9786
c) 0.9667

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d) 0.9876

44) The life of a cycle tyre is normally distributed with mean 350 days
and variance 64. It is true that:

a) The probability that the life of the tyre will be less than 336.84
days is greater than 5%
b) The probability that the life of the tyre will be greater than 363.16
days is greater than 5%
c) The probability that the life of the tyre will be between 336.84 and
363.16 days is 90%
d) The probability that the life of the tyre will be less than 334.32
days is greater than 3%

45) Let X and Y be independent random variables such that log(X) has
the normal distribution with mean 1.6 and variance 4.5 and log (Y)
has the normal distribution with mean 3 and variance 6. Find the
distribution of the product of XY?

a) XY~ 𝐥𝐧(𝟒. 𝟔, 𝟏𝟎. 𝟓)

b) XY~ ln(10.5, 4.6)
c) XY~ ln(5.5, 8.6)
d) XY~ln(8.6, 5.5)

46) Suppose that in a certain examination in advanced mathematics,

students from university A achieve scores that are normally
distributed with a mean of 625 and a variance of 100, and student
from university B achieve scores which are normally distributed with
a mean of 600 and a variance of 150. If two students from university
A and three students from university B take this examination, what is
the probability that the average of the scores of the two students
from university A will be greater than the average of the three
students from university B?

a) 0.9938
b) 0.9983

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c) 0.9933
d) 0.9988

47) Let x be ar.v with pdf f(x) and let F(x) be the distribution function.
(log x−μ)2
−
xf(x) e 2
Let r(x) = . Then for x<eμ and f(x) = f(x) = , the
1−F(x) x√2π
function r(x) is
a) Increasing in x,
b) Decreasing in x,
c) Constant,
None of these

48) Let Xi, I = 1, 2, …. n be identically distributed with variance σ2.

̅ n = 1 ∑ X i and let an = Var(X
Let cov (Xi,Xj) = p for all i≠j. define X ̅ n ).
n
Then lim an equals
n→∞
a) 0
b) p
c) σ2 + p
d) σ2 + p2 [ISI 2010]

49) Suppose that the diameters of the bolts in a large box follow a normal
distribution with a mean of 2 centimeter and a s.d of 0.03 centimeter.
Also, suppose that the diameter of the holes in the nut in a large box
follows a normal distribution with a mean of 2.02 centimeters and a
s.d of 0.4 centimeter. A bolt and a nut will fit together if the diameter
of the hole in the nut is greater than the diameter of the bolt and the
difference b/w these diameters are not greater than 0.05 centimeter.
If a bolt and a nut is selected at random, what is the probability that
they will fit together?

a) 0.3812
b) 0.3612
c) 0.3412
d) None of the above

50) Let X be a Normally distributed random variable with mean 0 and

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variance 1. Let Φ(.) be the cumulative distribution function of the

variable X. Then the expectation of Φ(X) is
1
a) − ,
2

b) 0,
𝟏
c) ,
𝟐

d) 1.

51) The distribution of resistance for resistors of a certain type is known

to be normal, with 10% of all resistors having a resistance exceeding
10.256 ohms and 5% having a resistance smaller than 9.671 ohms.
What are the mean value and standard deviation of the resistance
distribution?

a) mean=(20), s.d=(0.2)
b) mean=(10), s.d=(0.2)
c) mean=(20), s.d=(0.4)
d) mean=(10), s.d=(0.4)

52) If a normal distribution has 𝜇 = 30 𝑎𝑛𝑑 𝜎 = 5. what is the 91st

percentile of the distribution?

a) 33.7
b) 34.7
c) 35.7
d) 36.7

53) A machine that produces ball bearings has initially been set so that
the true average diameter of the bearings is produces is 0.500 in. A
bearing is acceptable if its diameter is within 0.004 in. of this target
value. Suppose, however, that the setting has changed during the
course of production, so that the bearings have normally distributed
with mean value 0.499 in and standard deviation 0.002 in. what % of
the bearings produced is not acceptable?

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a) 4.3%
b) 7.3%
c) 6.3%
d) None of the above

54) Suppose only 75% of all drivers in a certain state regularly wear a
seat belt. A random sample of 500 drivers is selected. What is the
probability b/w 360 and 400 ( inclusive) of the drivers in the sample
regularly wear a seat belt?

a) 0.9709
b) 0.9609
c) 0.9509
d) 0.9409

55) The weight distribution of parcels sent in a certain manner is normal

with mean value 12lb and s.d 3.5lb. The parcel service wishes to
establish a weight value c beyond which there will be a surcharge.
What value of c is such that 99% of all parcels are at least 1lb under
the surcharge weight?

a) 19.155
b) 22.155
c) 21.155
d) None of the above

56) There are 600 business students in the graduate dept. of an

university, and the probability for any student to need a copy of a
particular textbook from the university library on any day is 0.05.
how many copies of the book should be kept in the university library
so that the probability may be greater than 0.90 that none of the
students needed a copy from the library has to come back
disappointed?

a) more than 36 books

b) more than 37 books
c) more than 38 books
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d) more than 39 books

2 2
57) If f(x)= 𝑒 −4𝑥 , −∞ < 𝑥 < ∞, is the p.d.f of a normal distribution,
√𝜋
then what is the value of the variance of the distribution ?

a) 1/8
b) 1/6
c) 1/4
d) 1/2

58) For a certain normal distribution, the first moment about 10 is 40

and the 4th moment about 50 is 48. What is the arithmetic mean and
standard deviation of the distribution?

a) Mean(50), s.d(4)
b) Mean(50), s.d(2)
c) Mean(40), s.d(2)
d) Mean(40), s.d(4)

59) Suppose X & Y are independent random variables with standard

normal distributions. The probability of X< −1 𝑖𝑠 𝑠𝑜𝑚𝑒 𝑝 ∈
(0, 1). 𝑤ℎ𝑎𝑡 𝑖𝑠 𝑡ℎ𝑒 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑡ℎ𝑒 𝑒𝑣𝑒𝑛𝑡 𝑥 2 > 1𝑎𝑛𝑑 𝑦 3 > 1?
a) 2p
b) 4p
c) 4𝑝2
d) 2𝒑𝟐

60) In a normal distribution, 31% of the items are under 45 and 8% are
over 64. Find the mean and standard deviation of the distribution?

a) Mean(50); Standard deviation(10)

b) Mean(40); Standard deviation(10)
c) Mean(50); Standard deviation(5)
d) Mean(40); Standard deviation(5)

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61) The average test marks in a particular class is 79. The standard
deviation is 5. If the marks are distributed normally, how many
students in a class of 200 students didn’t receive marks b/w 75 and
82?

a) 95students
b) 96students
c) 97students
d) None of the above

62) Let X be a normally distributed random variable with mean 0 and

variance σ2 . Then, the mean of X2 is

a) 0
b) σ
c) 2σ
d) 𝛔𝟐 [DSE 2010]

63) A factory turns out an article by mass production methods. From past
experience it appears that 10 articles on the average are rejected out
of every batch of 100. Find the standard deviation of the number of
rejects in a batch.

a) 1
b) 2
c) 3
d) 4

64) Suppose that the measured voltage in a certain electric circuit has the
normal distribution with mean 120 and s.d 2. If three independent
measurements of the voltage are made, what is the probability that
all three measurements will lie b/w 116 and 118?

a) 0.1760
b) 0.1560
c) 0.1460
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d) 0.1360

65) Let X, Y, Z be independent lifetimes of memory chips. Suppose that all

X, Y and Z has the normal distribution with mean 300 and standard
deviation 10 hours. Compute the probability that at least one of the
three chips lasts at least 290hours?

a) 0.9760
b) 0.9680
c) 0.9860
d) 0.9960

66) X is a normally distributed random variable with unknown mean μ

and standard deviation equal to 2. The value of the sample mean from
a random sample of size 25 is 10. Which of the following values lie
within the 95% confidence interval for μ?

a) 9.3
b) 9.8
c) 10.6
d) All of the above

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Chapter-10
Joint probability distribution

1) X Y→ 0 1 2 3 4
↓
0 0.08 0.07 0.06 0.01 0.01

1 0.06 0.10 0.12 0.05 0.02

2 0.05 0.06 0.09 0.04 0.03

3 0.02 0.03 0.03 0.03 0.04

Determine each of the following probabilities:

a) P(X)=2 (0.27)

b) P(Y ≥ 2) ( 0.53)

c) P(X ≤ 2 & 𝑌 ≤ 2) (0.69)

d) P(X=Y) (0.3)

e) P(X > 𝑌) (0.25)

X Y→ 1 2 3
↓
1 0.10 0.10 0.05

2 0.15 0.10 0.05

3 0.20 0.05 -

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4 0.15 0.05 -
2)

a) Determine P(X=1), P(X=2)and P(X=3)?

P(X=1)=0.6
P(X=2)=0.3
P(X=3)=0.1
b) Find the marginal probability distribution of X?

X 1 2 3

P(X=x) 0.6 0.3 0.1

c) Find the marginal probability distribution of Y?

Y 1 2 3 4

P P(Y=y) 0.25 0.3 0.25 0.2

3) Obtain the probability function for the marginal distribution of N

from 0, where

𝑚
P(M=m, N=n)= where m=1, 2, 3, 4 and n=1, 2, 3?
35×2𝑛−2

a) P(M=3, N= 1 or 2) (9/35)

b) P(N=3) (1/7)

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c) P(M=2/N=3) (1/5)

d) Also, check whether M & N are independent or not?

X Y→ 10 20 30
4)
↓
1 0.2 0.2 0.1

2 0.2 0.3 0

a) Calculate E(Y/X=1)? (18)

b) Calculate E(X/Y=1)? (1.5)

c) Calculate variance(Y/X=1)? (56)

5) Suppose that X & Y are two random variables such that (X,Y) must lie
in the XY plane containing all points (X,Y) for which X= 0,1,2,3 & Y=
0,1,2,3,4. Suppose that the joint CDF of X and Y at every points given
above is specified as follow:

f(X,Y)= 156XY(𝑋 2 + 𝑌)
𝟏
a) Compute the CDF of Y? [ 𝒀(𝟗 + 𝒀)]
𝟓𝟐
𝟏
b) Compute the joint PDF of X &Y? (3𝑿𝟐 + 𝟐𝒀)
𝟏𝟓𝟔

6) Suppose that X & Y have a discrete distribution for which the joint
PDF is as follow:

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𝑐|𝑋 + 𝑌| , 𝑓𝑜𝑟𝑥 = −2, −1, 0, 1, 2

f(X, Y)={ 𝑓𝑜𝑟 𝑦 = −2, −1, 0,1,2
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

a) Determine the value of c? (1/40)

b) P(X=0 & Y= -2) (1/20)

c) P(X=1) (7/40)

d) P(X=|𝑋 − 𝑌| ≤ 1) (0.7)

7) Y X→ 0 1 2
↓
1 0.1 0.1 0

2 0.1 0.1 0.2

3 0.2 0.1 0.1

a) The marginal distribution of X?

X 0 1 2

P(X=x) 0.4 0.3 0.3

b) The conditional distribution of X/Y=2?

P(X=0/Y=2)=0.25
P(X=1/Y=2)=0.25
P(X=2/Y=2)=0.5

c) Are X AND Y are independent?

d) Calculate the expected value of 𝑋2 + 2𝑌? (5.5)

e) Also, verify that E[𝑋2 + 2𝑋𝑌] = 𝐸 [𝑋 2 ] + 𝐸[2𝑌]?

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f) Calculate the covariance of the random variables X & Y? (0.02)

8) Suppose that X & Y have a joint discrete distribution for which the
joint PDF is defined as follow:

1
(𝑋 + 𝑌), 𝑓𝑜𝑟 𝑋 = 0, 1, 2
30
f(X, Y)= { 𝑓𝑜𝑟 𝑌 = 0, 1, 2, 3
0 , 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

a) Determine the marginal distribution of X & Y?

𝟏
For X = (2X+3)
𝟏𝟓
𝟏
For Y= (1+Y)
𝟏𝟎
b) Are X & Y independent?

9) Each student in a certain school was classified according to her year

in school (freshman, sophomore, junior, senior)and according to the
number of times that she visited a certain museum (never, once or
more than once). The proportions of students in the various
classifications are given in the following table:

Never Once More

than
once
Freshman 0.08 0.10 0.04

Sophomores 0.04 0.10 0.04

Juniors 0.04 0.20 0.09

Seniors 0.02 0.15 0.10

a) If a student selected at random from the high school is a junior,

what is the probability that she had never visited the museum?
(4/33)

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b) If a student selected at random from the high school has visited

the museum 3 times, what is the probability that she is a senior?
(10/27)

10)
N M→ 1 2 3 4
↓
1 2/35 4/35 6/35 8/35

2 1/35 2/35 3/35 4/35

3 1/70 1/35 3/70 2/35

𝑁+1
a) Calculate the expected value of ? (36/35)
𝑀

𝑁+1 1
b) Also, verify that E[ ] = 𝐸 [ ] 𝐸[𝑁 + 1]
𝑀 𝑀

11) Q P→ -1 0 1
↓
-1 0.1 0.6 0.1

1 0.1 0 0.1

a) Show that P & Q are uncorrelated but not independent?

12) X &Y are random variables and their joint probability distribution
is as follow:

Y=1 Y=2 Y=3 Y=4 Y=5 Y=6

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X=-1 0.1 A 0.3 0 0 0

0 0 b 0.1 0.1 0.1

X=1

It is known that the expectation of the two random variables are

E(X)= -0.2 & E(Y)=3.2.

1) The value of a? (0.2)

2) The value of b? (0.1)

13) Let the joint probability distribution function of two random

variables X and Y is given by f(x, y)= c(2X+Y) for all X=0, 1, 2 AND
Y=0, 1, 2, 3.

a) Find the value of c?

(1/42)
b) P(X ≥ 1, 𝑌 ≤ 2)?
(4/7)
𝟏
,𝒙 = 𝟎
𝟕
𝟏
c) The marginal PDF of X AND Y? 𝒇𝟏 (𝒙) = ,𝒙 = 𝟏 ,
𝟑
𝟏𝟏
{𝟐𝟏 , 𝒙 = 𝟐
𝟏
,𝒚 = 𝟎
𝟕
𝟑
,𝒚 = 𝟏
𝟏𝟒
𝒇𝟐 (𝒚) = 𝟐
,𝒚 = 𝟐
𝟕
𝟓
{𝟏𝟒 , 𝒚 = 𝟑

d) Show that X and Y are dependent?

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1/3, 𝑓𝑜𝑟 𝑋 = 0, 1, 2
𝑓𝑜𝑟 𝑦 = 0, 1, 2
1
14) f(x)= , 𝑓𝑜𝑟 𝑋 = 6, 7, 8
6
𝑓𝑜𝑟 𝑌 = 0, 1, 2
{ 0 , 𝑜𝑡ℎ𝑒𝑤𝑖𝑠𝑒

Show that X AND Y are independent?

3
𝑌 2 , 𝑓𝑜𝑟 𝑋 = 0, 1, 2
2
15) f(x)={ 𝑓𝑜𝑟 𝑦 = 0, 1
0 , 𝑜𝑡ℎ𝑒𝑤𝑖𝑠𝑒

𝟏
a) Find the marginal PDF OF X & Y? (𝒇𝟏 (𝒙) = , 𝒇𝟐 (𝒚) = 𝟑𝒚𝟐 )
𝟐

b) Are X & Y are independent?

c) Are P(X < 1) & the event P(Y ≥ 1/2) independent?

16) A certain drugstore has three public booths. For i= 0, 1, 2, 3, let 𝑃𝑖

denote the probability that exactly i telephone booths will be
occupied on any Monday evening at 8:00 pm ; and suppose that 𝑃𝑜 =
0.1, 𝑃1 = 0.2, 𝑃2 = 0.4 & 𝑃3 = 0.3. let X & Y denote the number of
booths that will be occupied at 8:00 pm on two independent Monday
evenings. Determine the following cases:-

a) The joint p.f. of X & Y? ( 𝒑𝒙 𝒑𝒚 )

b) P(X=Y)? (0.3)

c) P(X > 𝑌)? (0.35)

17) Let X and Y be two continuous random variables with joint PDF:

2
𝑓𝑥𝑦 (𝑥, 𝑦) = { 𝑥 + 𝑐𝑦 , 0 ≤ 𝑥 ≤ 1, 0 ≤ 𝑦 ≤ 1
0 𝑜𝑡ℎ𝑒𝑤𝑖𝑠𝑒
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Then, find the following

a) Find the constant c. (c = 3/2)

1 1
b) P(0 ≤ 𝑥 ≤ , 0 ≤ 𝑦 ≤ ) (3/32)
2 2

c) Marginal PDF of 𝑓𝑥 (𝑥 ) and 𝑓𝑦 (𝑦)

𝟏 𝟑 𝟐 𝟏
𝒇𝒙 (𝒙) = { 𝒙 + , 𝟎 ≤ 𝒙 ≤ 𝟏 ; 𝒇𝒚 (𝒚) = {𝟐 𝒚 + 𝟐 , 𝟎 ≤ 𝒚 ≤ 𝟏
𝟐
𝟎, 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆 𝟎, 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆

18) Let X and Y be two continuous random variables with joint PDF:

𝑓𝑥𝑦 (𝑥, 𝑦) = { 𝑐𝑥𝑦 2 , 0 ≤ 𝑥 ≤ 1, 0 ≤ 𝑦 ≤ 1

0 𝑜𝑡ℎ𝑒𝑤𝑖𝑠𝑒
Then, find the following
a) Find the constant c (c = 10)

b) Marginal PDF of 𝑓𝑥 (𝑥 ) and 𝑓𝑦 (𝑦)

𝟏𝟎
𝟓𝒙𝟒 , 𝟎 ≤ 𝒙 ≤ 𝟏 𝒚(𝟏 − 𝒚𝟑 ) , 𝟎 ≤ 𝒚 ≤ 𝟏
𝒇𝒙 (𝒙) = { ; 𝒇𝒚 (𝒚) = { 𝟑
𝟎, 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆 𝟎, 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆

𝑥
c) P(𝑦 ≤ ) (1/4)
2

𝑥 𝑥
d) P(𝑦 ≤ /𝑦 ≤ ) (1/4)
4 2

19) Let X and Y be two continuous random variables with joint PDF:

2
(𝑥 + 2𝑦), 0 ≤ 𝑥 ≤ 1, 0 ≤ 𝑦 ≤ 1
𝑓𝑥𝑦 (𝑥, 𝑦) = { 3
0 𝑜𝑡ℎ𝑒𝑤𝑖𝑠𝑒
Then, find the following
a) Marginal PDF of 𝑓𝑥 (𝑥 ) and 𝑓𝑦 (𝑦)

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𝟐 𝟐 𝟏
(𝒙 + 𝟏) , 𝟎 ≤ 𝒙 ≤ 𝟏 ( + 𝟐𝒚) , 𝟎 ≤ 𝒚 ≤ 𝟏
𝒇𝒙 (𝒙) = {𝟑 ; 𝒇𝒚 (𝒚) = {𝟑 𝟐
𝟎, 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆 𝟎, 𝒐𝒕𝒉𝒆𝒓𝒘𝒊𝒔𝒆

1 1
b) P(𝑥 ≤ , 𝑦 ≤ ) (1/8)
2 2

20) Each cell of the following table provides the probability of the joint
occurrence of the corresponding pair of values of the random
variables X and Y.

X↓ Y→ 1 2 3 4

1 .1 0 .1 0

2 .3 0 .1 .2

3 0 .1 0 .1

Consider the following statements about X and Y:

I. Pr(Y = 2) >Pr(X = 1)
II. Pr(Y = 1|X = 2) = Pr(Y = 1|X =1)
III. The events X = 3 and Y = 3 are mutually exclusive.
IV. X and Y are independent.

Which of the above statements are true?

a) Only I and II.
b) Only II and III.
c) Only III and IV.
d) Only II, III and IV. [DSE 2008]

21) A fair dice has numbers 1, 2, 3, 4, 5 and 6 on its sides. It is tossed

once. I win Re. 1. If an odd number shows up: otherwise I lose Re.1. let

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X be the number that shows up and Y the money I win. [Note: Y < 0 if I
lose money.]

Which of the following is incorrect?

a) Prob (X > Y) = 1
b) Prob (X = 3|Y=1) = 1/3
c) E(Y)= 0
d) Prob(Y=1|X= 5)=1 [DSE 2009]

22) Suppose two restaurants are going to be located at a street that is

ten kilometers long. The location of each restaurant will be chosen
randomly. What is the probability that they will be located less than
five kilometers apart?

a) 1/4
b) 1/2
c) 3/4
d) 1/3 [DSE 2014]

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CHAPTER-11
Sampling, estimation and
hypothesis testing

1. If the original population from which the samples were drawn is not
normally distributed, then the sampling distribution of the mean will be
-------- for large sample sizes.

a. Normal
b. Approximately normal
c. The same as the original population distribution
d. C.
e. Uniform

2. Which of the following is false?

a. The sampling distribution of the mean will have the same SD as

the original population from which the sample were drawn
b. The sampling distribution of the mean will have the same mean
as the original population from which the sample were drawn
c. The sampling distribution of the mean will be normal if the
original population from which the sample were drawn is
normally distributed

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d. Sample data are used as a basis from which to make probability

statements about the true value of the population mean or
proportion
e. Using information from a sample to reach conclusions about the
population from which it was drawn is referred to as inferential
statistics

3. Consider a large population with a mean of 160 and SD of 25. A random

sample of 64 is taken from the population. What is the SD of the sample
mean?

a. 3.125

b. 2.500
c. 3.750
d. 5.625
5.000

4. Suppose we are interested in estimating the mean height of M.A.

students in Delhi University. An average height estimated from a
random sample of size 30 is better that the estimated from a random
sample of size 20 because.

a. The sample of size 20 is likely to be more biased because it is

less representative.
b. The sample size of 30 is likely to yield more precise estimates of
average height than the sample of size 20.
c. The Central Limit Theorem prescribes a minimum sample size
of 30
d. Both (a) and (b) [DSE 2011]

5.Consider a large population with a mean of 160 and SD of 20. A

random sample of 64 is taken from the population. What is the SD
of the sample mean?

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a. 3.125
b. 2.500
c. 3.750
d. 5.625
e. 5.000

6.Consider a large population with a mean of 160 and SD of 30. A

random sample of 64 is taken from the population. What is the SD
of the sample mean?

a. 3.125
b. 2.500
c. 3.750
d. 5.625
e. 5.000

7. Consider a large population with a mean of 160 and SD of 45. A random

sample of 64 is taken from the population. What is the SD of the
sample mean?

a. 3.125
b. 2.500
c. 3.750
d. 5.625
e. 5.000

8. A sample of size n is selected at random from a large population. As n

increases, which of the following statements is true?
a. The population SD decreases
b. The SD of the sample mean decreases
c. The population SD increases
d. The SD of the sample mean increases
The SD of the sample mean remains unchanged

9.Which of the following statement is correct?

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a. If X is normally distributed then the sample mean is skewed to

the right
b. If X is normally distributed then the sample mean is normally
distributed with the same mean and variance as X.
c. If X is not normally distributed then the sample mean is
approximately normally distributed as long as the sample size is
greater than 30
d. If X is not normally distributed then the sample mean is not
normally distributed
e. none of the above statements is correct

10. Why is the Central Limit Theorem so important to the study of

sampling distributions?

a. It allows us to disregard the size of the population we are

sampling from
b. It allows us to disregard the size of the sample selected when
the population is not normal
c. It allows us to disregard the shape of the sampling distribution
when the size of the population is large
d. It allows us to estimate the sampling distribution of any
population when the sample size is large enough is large
e. None of the above is a correct statement

11. In a given year, the average annual salary of professional South

African soccer players was Rs.189, 000 with a standard deviation
of Rs. 20, 500. If a sample of 50 players was taken, what is the
probability that the sample mean of their salaries was more than
Rs. 192, 000?

a. 0.1515
b. 0.3669
c. 0.2451
d. 0.2549
e. 0.3485

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12. In a given year, the average annual salary of professional South

African soccer players was Rs.189, 000 with a standard deviation of
Rs. 20, 500. If a sample of 50 players was taken, what is the
probability that the sample mean of their salaries was more than Rs.
190, 000?

a. 0.1515
b. 0.3669
c. 0.2451
d. 0.2549
e. 0.3485
13. In a certain stats class, the marks obtained by students on a class test
followed a normal distribution with a mean of 68% and a standard
deviation of 10%. What is the probability that the mean test mark
from a sample of 25 students from the class was more than 72%?

a.0.0228
b.0.0668
c.0.1587
d. 0.3085
e.0.9332

14. In a certain stats class, the marks obtained by students on a class test
followed a normal distribution with a mean of 68% and a standard
deviation of 10%. What is the probability that the mean test mark
from a sample of 25 students from the class was more than 71%?

a.0.0228
b.0.0668
c.0.1587
d.0.3085
e. 0.9332

15.In a certain stats class, the marks obtained by students on a class test
followed a normal distribution with a mean of 68% and a standard

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deviation of 10%. What is the probability that the mean test mark
from a sample of 25 students from the class was more than 70%?

a.0.0228
b.0.0668
c. 0.1587
d. 0.3085
e. 0.9332

16. In a certain stats class, the marks obtained by students on a class test
followed a normal distribution with a mean of 68% and a standard
deviation of 10%. What is the probability that the mean test mark
from a sample of 25 students from the class was more than 65%?

a.0.0228
b. 0.0668
c. 0.1587
d. 0.3085
e. 0.9332

17. The average daily temperature in Johannesburg during summer

follows a normal distribution with a mean of 27 degrees Celsius and a
standard deviation of 15 degrees Celsius. What is the probability that
a randomly chosen sample of 10 summer days will have an average
temperature of less than 28 degrees?

a. 0.5832
b. 0.4168
c. 0.3372
d. 0.7357
e. 0.2643

18. The average daily temperature in Johannesburg during summer

follows a normal distribution with a mean of 27 degrees Celsius and a
standard deviation of 15 degrees Celsius. What is the probability that
a randomly chosen sample of 10 summer days will have an average
temperature of less than 26 degrees?
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a.0.5832
b. 0.4168
c. 0.3372
d. 0.7357
e. 0.2643

19. Which of the following statements is not correct?

b. When an interval estimate is associated with a degree of

confidence that it actually includes the population parameter of
interest, it is referred to as a confidence interval
c. If the population mean and population standard deviation are
both known, one can make probability statements about
individual x values taken from the population
d. If the population mean and population standard deviation are
both known, one can use the central limit theorem and make
probability statements about the means of samples taken from
the population
e. If the population mean is unknown, one can use sample data as
the basis from which to make probability statements about the
true (but unknown) value of the population mean
f. When sample data are used for estimating a population mean,
sampling error will not be present since the observed sample
statistic will not differ from the actual value of the population
parameter.

20. Inferential statistics is the:

c. process of using a population parameter to estimate the

values for sample statistics
d. Process of using sample statistics to estimate population
parameters
e. Process which allows the researcher to determine the exact
values for population parameters
f. Process that eliminates the problem of sampling error

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g. Branch of statistics involving using population parameters

to estimate sampling distributions

21. Which of the following statements are correct?

a. A point estimate is an estimate of the range of a population parameter

b. A point estimate is an unbiased estimator if its standard deviation is

the same as the actual value of the population standard deviation
c. A point estimate is a single value estimate of the value of a population
parameter
d.All of the above statements are correct

22. A point estimator is defined as:

a.The average of the sample values

b. The average of the population values
c.A single value that is the best estimate of an unknown population
parameter
d.A single value that is the best estimate of an unknown sample
statistic
e.A number which can be used to estimate a point in time which is
unknown

23. Which of the following statements is/are correct?

a.An interval estimate is an estimate of the range of possible values for

a population parameter
b. An interval estimate describes a range of values that is likely not to
include the actual population parameter
c. An interval estimate is an estimate of the range for a sample
statistic
d. All of the statements above are correct
e. None of the statements above are correct

24. A confidence interval is defined as:

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a. A point estimate plus or minus a specific level of confidence

b. A lower and upper confidence limit associated with a specific level of

confidence
c. A an interval that has a 95% probability of containing the population
parameter
d. A lower and upper confidence limit that has a 95% probability of
containing the population parameter
e. An interval used to infer something about an unknown sample
statistic value

25. The term 1 – α refers to the

a.Probability that a confidence interval does not contain the

population parameter
b. The level of confidence minus one
c. The level of confidence
d. The level of confidence plus one
e. The level of significance

26. Using a random sample, an ordinary least squares regression of Y on

X yields the 95% confidence interval 0.43 < β < 0.59 for the slope
parameter β. Which of the following statement is false?

a. This interval contains the parameter β with probability 0.95

b. The point estimate of β obtained from our regression always lies
within this interval
c. The 90% confidence interval for β is a subset of the interval obtained
above
d. If such intervals are constructed from repeated samples drawn from
the population in question, then on average 95 out of 100 of these
intervals are likely to contain the truth parameter value.[DSE 2010]

27. A 95% confidence interval for the population mean is calculated to be

75.29 to 81.45. If the confidence level is reduced to 90%, the
confidence interval will

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a.Become narrower
b. Remain the same
c. Become wider
d. Double in size
e. Most likely no longer include the true value of the population mean

28. A 95% confidence interval for the population mean is calculated to be

75.29 to 81.45. If the confidence level is increased to 98%, the
confidence interval will

a.Become narrower
b. Remain the same
c. Become wider
d. Double in size
e. Most likely no longer include the true value of the population mean

29. In the formula for the confidence interval, z is part of the formula.
What does the subscript α/2 refer to?

a. The level of confidence

b. the level of significance

c. The probability that the confidence interval will contain the population
mean
d. The probability that the confidence interval will not contain the
population mean
e. The area in the lower tail or upper tail of the sampling distribution of
the sample mean

30. Let Xi, X2, …, Xn be random samples from a normal distribution with
parameter μ and σ2 . Then the random variable
n
(n − 1)S 2 1
2 = 2 ∑(X i − ̅
X)2
σ σ
i=1

Has a chi-squared (X 2 ) distribution with n – 1 degrees of freedom.

Here ̅X denotes the mean of X1, X 2, … X n. Suppose area under a chi-

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squared curve with n – 1 degrees of freedom to the right of X 2v,n−1

is v. A 100(1 - α)% confidence interval for the variance σ2 is
(𝐧−𝟏)𝐒𝟐 (𝐧−𝟏)𝐒𝟐
a) [ , ]
𝛘𝟐𝛂 𝛘𝟐 𝛂
,𝐧−𝟏 𝟏− ,𝐧−𝟏
𝟐 𝟐

(n−1)S2 (n−1)S2
b) [ , ]
χ2 α χ2α
1− ,n−1 ,n−1
2 2

nS2 nS2
c) [ , ]
χ2α χ2 α
,n−1 1− ,n−1
2 2

nS2 nS2
d) [ , ] [DSE 2012]
χ2 α χ2α
1− ,n−1 ,n−1
2 2

31. Which of the statements below completes the following statement

correctly? The larger the level of confidence used in constructing a
confidence interval estimate of the population mean, then

a. Smaller the probability that the confidence interval will contain the
population mean
b. The smaller the value of z
c. The narrower the confidence interval
d. The wider the confidence interval
e. The more the width of the confidence interval remains the same

32. Which one of the statements below is correct?

a) If n, the sample size, increases, the confidence interval becomes wider

b) A 90% confidence interval for the population mean is narrower than a
95% confidence interval for the population mean
c) As the population standard deviation increases, the confidence
interval becomes narrower
d) If α = 0.01, it implies that we are 1% confident that the population
e) mean will lie between the confidence limits
None of the above statements is correct

33. The boundaries of a confidence interval are called

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a. Confidence levels
b. The test statistics
c. The degrees of confidence
d. The confidence limits
e. Significance levels

34. What value of z would you use to calculate the 90% confidence
interval for a population mean, given that you know the population
standard deviation, the sample size and the sample mean of your
sample?

a. z = 1.96
b. z = 2.58
c. z = 0.84
d. z = 1.28
f. z = 1.645

35. Which of the following statements is false with regards to the width
of a confidence interval?

a. The sample mean from which the interval is constructed is located

half way between the boundaries of the confidence interval
b. The width of the interval increases when the sample size is
decreased
c. The width of the interval decreases when the significance level is
increased
d. The width of the interval decreases when the sample mean is
decreased
e. The width of the interval increases when the confidence level is
increased

36. After constructing a confidence interval estimate for a population

mean, you believe that the interval is useless because it is too wide. In
order to correct this problem, you need to

a. Increase the population standard deviation

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b. Increase the sample size

c. Increase the level of confidence
d. Increase the sample mean
e. Decrease the sample size

37. The problem with relying on a point estimate of a population

parameter is that the point estimate

a. Has no variance
b.Might be unbiased
c. Might not be relatively efficient
d. Does not tell us how close or far the point estimate might be from
the parameter
e. May not be consistent

38. A federal auditor for nationally chartered banks from a random

sample of 100 accounts found that the average demand deposit
balance at the First National Bank of a small town was Rs. 549.82. If
the auditor needed a point estimate for the population mean for all
accounts at this bank, what would she use?

a.The average of R549.82 for this sample.

b. The average of R54.98 for this sample.
c. There is no acceptable value available.
d. She would survey the total of all accounts and determine the mean.
e. The mean would be impossible to calculate without further
information

39. When choosing an estimator of a population parameter, one should

consider

a. Sufficiency
b. Clarity
c. Efficiency
d. All of the above
e. a) and c) but not b)

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40. Assume that you take a sample and calculate 𝑥̅ = 100. You then
calculate the upper limit of a 90 % confidence interval for 𝜇; its value
is 112. What is the lower limit of this confidence interval?

a. 88
b. 92
c. 100
d. It can’t be determined on the basis of this given information.

41. After taking a sample and computing 𝑥̅ , a statistician says, “ I am 88 %

confident that the population mean is between 106 and 122.” What
does she really mean?

a. The probability is 0.88 that 𝜇 is between 106 and 122

b. The probability is 0.88 that 𝜇 = 114, the midpoint of the interval
c. Eighty – eight percent of the intervals calculated from samples of
this size will contain the population mean
d. All of the above
e. a) and c) but not b)

42. In a random sample of 400 mangoes selected from a large

consignment, 30 were found rotten. The null hypothesis is that the
proportion π of rotten mangoes in the consignment is 10%. It is true
that:

a. Given HA : π ≠ 0.1, we can’t reject the null at the 1% level of

significance, and the probability of error type I of this test is 0.005
b. Given HA : π < 0.1, we reject the null at the 5% level of significance,
and the probability of error type I of this test is 0.05
c. Given HA : π ≠ 0.1, we reject the null at the 10% level of significance,
and the probability of error type I of this test is 0.1
d. If HA : π > 0.1, the power of the associated test is higher than if HA :
π < 0.1, [DSE 2008]

43. Which of the following is a necessary condition for using a t –

distribution table?
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a. n is small
b. s is known but 𝜎 is not known
c. The population is infinite
d. All of the above
e. a) and b) but not c)

44. Which of the following is a difference b/w z tables and t tables?

a. The t table has values for only a few percentages

b. The t table measures the chance that the population parameter we are
estimating will be in our confidence interval

c. We must specify the degrees of freedom with which we are dealing

when using a z table
d. All of the above
e. a) and b) but not c)

45. Suppose we are attempting to estimate a population variance by

using 𝑠 2 . It is incorrect to calculate 𝑠 2 𝑎𝑠 ∑(𝑥 − 𝑥̅ )2 /𝑛 because the
value would be

a. Biased
b. Inefficient
c. Inconsistent
d. Insufficient

46. Assume that, from a population with n = 50, a sample of size 15 is

drawn; 𝜎 2 is known to be 36, and 𝑠 2 for the sample is 49, 𝑥̅ for the
sample is calculated as 104. Which of the following should be used
for calculating a 95% confidence interval for 𝜇?

a. Student’ s t – distribution
b. Normal distribution
c. Finite population multiplier
d. a) and c) but not b)
e. b) and c) but not a)

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47. We can use the normal distribution to represent the sampling

distribution of this population when:

a. The sample size is more than 10

b. The sample size is less than 50
c. The sample size is more than 5
d. None of the above

48. If a statistic underestimates a population parameter as much as it

overestimates it, we would call it:

a.Consistent
b. Sufficient
c. Efficient
d. All of the above
e. None of the above

49. If population proportion information is unknown, the standard error

of the proportion can be estimated by the formula:

a. √𝑛𝑝𝑞

b.√𝑛𝑝̅ 𝑞̅
c. √𝑝𝑞/𝑛
d.√𝒑̅𝒒
̅/𝒏

50. The average height of the 25 students in Mr. Stanton’s tenth grade
math class is known to be 66”. In constructing a 95 % confidence
interval for the average height of all tenth graders, we would use:

a. The normal distribution with 24 degrees of freedom

b. The t distribution with 24 degrees of freedom
c. The t distribution with 65 degrees of freedom
d. The t distribution with 25 degree of freedom

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51. A certain normally distributed population has a known SD of 1.0.

what is the total width of a 95% confidence interval for the population
mean?

a. 1.96
b. 0.98
c. 3.92
d. It can’t be determined from the information given

52. Which one of the statements below is correct?

a. If the significance level is equal to 0.1, it implies that we are 10%

confident that the population mean will lie between the
confidence limits
b. If the sample size increases the confidence interval becomes wider
As the population standard deviation increases, the confidence
interval becomes narrower

c.A 90% confidence interval for the population mean is narrower than
a 95% confidence interval for the population mean
d. Increasing the significance level increases the width of the
confidence interval

53. Sand is packed into bags which are then weighed on scales. It is
known that if full bags of sand are intended to weigh μ kg, then the
weight recorded by the scales will be normally distributed with a
mean μ kg and a standard deviation of 0.36kg. A particular bag of
sand was weighed four times and the weight recorded each time was
different. The sample mean weight was recorded as 34.7kg. What is a
95% confidence interval for the true weight of the full bag of sand?

a. 34.35 to 35.05kg
b. 35.85 to 36.55kg
c. 34.21 to 35.19kg
d. 34.48 to 34.92kg
e. 37.75 to 38.45kg

54. A Type I error occurs when we

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a. Reject a false null hypothesis

b. Reject a true null hypothesis
c. Do not reject a false null hypothesis
d. Do not reject a true null hypothesis
e. Fail to make a decision regarding whether to reject a hypothesis or
not

55. A doctor testing a diagnostic tool for a rare disease wants to minimize
the change that the test will find a patient to be healthy when she is in
fact sick (the null hypothesis being that the patient is healthy). The
doctor should minimize the probability of:

a. Type I error, which would denote a false positive.

b. Type II error, which would denote a false positive.
c. Type I error, which would denote a false negative.
d. Type II error, which would dente a false negative. [DSE 2011]
e. In a criminal trial, a Type I error is made when

56. A guilty defendant is acquitted (set free)

a. An innocent person is convicted (sent to jail)
b. A guilty defendant is convicted
c. An innocent person is acquitted
d. No decision is made about whether to acquit or convict the
defendant

57. A Type II error occurs when we

a. Reject a false null hypothesis

b. Reject a true null hypothesis
c. Do not reject a false null hypothesis
d. Do not reject a true null hypothesis
e. Fail to make a decision regarding whether to reject a hypothesis or
not

58. If a hypothesis is rejected at the 0.025 level of significance, it

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a. Must be rejected at any level

b. Must be rejected at the 0.01 level

c. Must not be rejected at the 0.01 level
d. Must not be rejected at any other level
e. May or may not be rejected at the 0.01 level

59. The p-value of a test is the:

a. Smallest significance level at which the null hypothesis cannot be

rejected
b. Largest significance level at which the null hypothesis cannot be
rejected
c. Smallest significance level at which the null hypothesis can be
rejected
d. Largest significance level at which the null hypothesis can be
rejected
e. Probability that no errors have been made in rejecting or not
rejecting the null hypothesis
60. In order to determine the p-value of a hypothesis test, which of the
following is not needed?

a. Whether the test is one-tail or two-tail

b. The value of the test statistic
c. The form of the null and alternate hypotheses
d. The level of significance
e. All of the above are needed to determine the p-value

61. Which of the following p-values will lead us to reject the null
hypothesis if the significance level of the test if 5%?

a. 0.15
b. 0.10
c. 0.06
d. 0.20
e. 0.025
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62. Suppose that we reject a null hypothesis at the 5% level of

significance. For which of the following levels of significance do we
also reject the null hypothesis?

a. 6%
b. 2.5%
c. 4%
d. 3%
e. 2%

63. Which of the following statements about hypothesis testing is true?

a. If the p-value is greater than the significance level, we fail to

reject 𝑯𝟎 .
b. A Type II error is rejecting the null when it is actually true.
c. If the alternative hypothesis is that the population mean is greater
than a specified value, then the test is a two-tailed test.
d. The significance level equals one minus the probability of a Type I
error.
e. None of the above statements are true.

64. In hypothesis testing, what level of significance would be most

appropriate to choose if you knew that making a Type I error would
be more costly than making a Type II error?

a. 0.005
b. 0.025
c. 0.050
d. 0.100
e. 0.028

65. To test a hypothesis involving proportions, both np and n(1-p)

should

a. Be at least 30
b. Be greater than 5
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c. Lie in the range from 0 to 1

d. Be greater than 50
e. There are no specific conditions surrounding the values of n and p

66. A study was conducted to evaluate the stress level of senior business
students at a particular college. Forty students were selected at
random from the senior business class, and their stress level was
monitored by attaching an electrode to the frontalis muscle
(forehead). For the forty students, the mean EMG (electromyogram)
activity was found to be 35.8 microvolt’s. In addition, the standard
deviation of the EMG readings was found to be 2.5 microvolt. What
would be the 99% confidence interval on the true mean EMG activity
for all seniors in the class?

a. (34.2796, 36.8704)
b. (34.7296, 36.7804)
c. (34.9672, 36.7840)
d. (34.7456, 36.0566)
e. (34.9834, 36.5095)

67. For n = 121, sample mean = 96, and a known population standard
deviation σ = 14, construct a 95% confidence interval for the
population mean.

a. (93.53, 98.48)
b. (93.51, 98.49)
c. (93.02, 98.98)
d. (93.06, 98.94)
e. (93.00, 98.95)

68. The mean of the sampling distribution of the sample mean is:

a. Equal to the mean of the population.

b. An approximation of the mean of the population.
c. Not a good estimate of the population mean.
d. Equal to the population mean divided by n.
e. None of the above
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69. For n = 25, sample mean = 645, and s = 55, construct a 99%
confidence interval for the population mean.

a. (614.23, 675.77)
b. (617.59, 672.41)
c. (617.67, 672.34)
d. (613.43, 676.66)
e. (616.68, 673.33)

70. When the sample size increases, everything else remaining the same,
the width of a confidence interval for a population parameter will:

a. Increases
b. Decreases
c. Remain unchanged
d. Sometime increases and sometime decreases
e. Can’t determined

71. In a sample of 1000 mangoes, the mean weight of a mango is 210 g,

and the standard deviation 9.5 g. In another sample of 1200 mangoes,
the mean is 180 g and the standard deviation 11.5 g. Assume that the
respective populations from which these samples are drawn have the
same variances. Given the null hypothesis

H0: μ1 − μ2 = 0, where μ1 and μ2 are the population means, it is

true that:

a. If 𝐇𝐀 : 𝛍𝟏 − 𝛍𝟐 ≠ 𝟎, were reject the null hypothesis at the 15%,

13%, 12% and 8% levels of significance
b. If HA : μ1 − μ2 ≠ 0, we do not reject the null hypothesis at the
1% level of significance.
c. The appropriate estimator for testing whether the sample are
from essentially the same population is μ1 − μ2.

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d. If HA : μ1 − μ2 ≠ 0, and we could a test at the 7% level of

significance, the probability of error type I of this test is 0.035.
[DSE 2008]

72. would happen (other things being equal) to a confidence interval if

you calculated a 99% confidence interval rather than a 95%
confidence interval?

a. It will be narrower
b. It will not change
c. The sample size will increase
d. It will become wide [DSE 2012]

73. A telephone company wants to estimate the mean number of minutes

people in a city spend talking long distance with 95% confidence.
From past records, an estimate of the standard deviation is 12
minutes. What is the minimum sample size required if the desired
width of the confidence interval is 10 minutes?

a. 28
b. 11
c. 23
d. 19
e. 42

74. In a department store, it is found that out of a randomly selected 64

customers, 21 buy cards. Construct a 95% confidence interval for the
proportion of customers buying cards.

a. (0.3177, 0.3445)
b. (0.2316, 0.42471)
c. (0.3214, 0.3349)
d. (0.2484, 0.5922)
e. (0.2131, 0.4432)

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75. Suppose that in sampling for the population proportion, it is found

that 20 out of 100 items are defective. Construct a 95% confidence
interval for the proportion of defective items in the population.

a. (0.1216, 0.2784)
b. (0.0234, 0.3452)
c. (0.1212, 0.3341)
d. (0.175, 0.225)
e. None of the above

76. The management of a local restaurant wants to estimate the average

amount their customers spend at the restaurant to within $0.50, with
a 95% confidence. What is the minimum sample size required, if the
standard deviation is assumed to be $3.50?

a. 272
b. 189
c. 325
d. 196
e. None of the above

77. A confidence interval for the population variance is being formulated,

and a random sample of 35 observations yields a sample variance
s2 = 2,120. What would interval limits for s2 be if a 95% confidence
interval was desired?

a. (1,483.1, 3,327.8)
b. (1,387.0, 3,638.6)
c. (1,308.4, 3,951.8)
d. (1,227.5, 4,368.5)
e. (1,167.5, 4,689.7)

78. If the sample size is cut to 1/4 of its present size, all else being the
same, the confidence interval will become:

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a. Twice as wide
b. Half as wide
c. 4 times as wide
d. Will not change
e. Not enough information to determine

79. To test hypotheses about the mean of a normal population with a

known SD, we can compare:

a. The observed value of 𝑥̅ with the critical value of 𝑥̅

b. The observed value of 𝑥̅ with the critical value of z
c. The observed value of z with the critical value of 𝑥̅
d. The observed value of z with the critical value of z
e. Either a) or d)

80. If we say that 𝛼 = 0.10 for a particular hypothesis test, we are saying
that:

a. 10% is our minimum standard of acceptable probability.

b. 10% is the risk we take of rejecting a hypothesis that is true
c. 10% is the risk we take of accepting a hypothesis that is false
d. a) and b) only
e. a) and c) only

81. Suppose that we wish to test whether a population mean is

significantly larger or smaller than 10. We take a sample and find 𝑥̅ =
8.What should our alternative hypothesis be?

a. 𝜇 < 10
b.𝝁 ≠ 𝟏𝟎
c. 𝜇 > 10
d. Can’t be determined from the information given

82. Suppose that a hypothesis test is being performed for a process in

which a type I error will be very costly, but a type II error will be
relatively inexpensive and unimportant. Which of the following
would be the best choice for 𝛼 in this test?

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a. 0.01
b. 0.10
c. 0.25
d. 0.50
e. None of the above

83. You are performing a right tail test of a population and 𝜎 is not
known. A sample of size 26 is taken, and 𝑥̅ 𝑎𝑛𝑑 𝑠 are computed. At a
significant level of 0.01, where would you look for the critical value
for the test?

a. The z table, where 0.99 of the area is to the left of the z value
b. The z table, where 0.98 of the area is to the left of the z value
c. The t table, where, with 25 degrees of freedom, the column heading
is 0.02.
d. The t table, where, with 25 degrees of freedom, the column heading
is 0.01.

84. When using the sample procedure, 𝑝̅ , to test the hypothesis

𝐻0: 𝑝 = 𝑃𝐻0 𝑎𝑛𝑑 𝐻1: 𝑝 ≠ 𝑃𝐻0 , 𝑡ℎ𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑒𝑟𝑟𝑜𝑟 𝑜𝑓 𝑝̅ is:

𝑝𝑞
a. √
𝑛

b. pq/n
c.√𝑷𝑯𝟎 𝒒𝑯𝟎 /𝒏
d. 𝑃𝐻0 𝑞𝐻0 /𝑛
e. None of the above

85. For a particular hypothesis test, 𝛼 = 0.05 𝑎𝑛𝑑 𝛽 = 0.10. The power of
this test is:

a. 0.15
b. 0.90
c. 0.85
d. 0.95
e . 0.25
None of the above

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86. For a two – tailed test of a hypothesis at 𝛼 = 0.10, the acceptance

region in the entire region:

a. To the right of the negative critical value

b. b/w the two critical values
c. outside the two critical values
d. to the left of the positive critical value

87. When the null hypothesis is 𝐻0 : 𝜇 = 42, the alternative hypothesis

can be:

a. 𝐻1: 𝜇 ≥ 42
b. 𝑯𝟏 : 𝝁 < 42
c. 𝐻1 : 𝜇 = 40
d. 𝐻1: 𝜇 ≠ 40

88. A set of two dependent samples of size 15 was taken and a hypothesis
test was performed. At t value with 14 degrees of freedom was used.
If the two sets of samples had been treated as independent, how
many degrees of freedom would have been used?

a. 14
b. 28
c. 29
d. 30

89. A two – tail test of difference b/w two proportions led to z = 1.85 for
its standardized difference of sample proportions. For which of the
following significance levels would you reject 𝐻0?

a. 𝛼 = 0.05
b. 𝜶 = 𝟎. 𝟏𝟎
c. 𝛼 = 0.02
a) and b) but not c)

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90. If sample 1 has 13 elements with 𝑠1 = 17 and sample 2 has 9

elements with 𝑠2 = 22, then 𝑠𝑝2 =

a. 19
b. 361
c. 367
d. 19.5

91. Suppose you have a sample of size one from one of the following
densities.

H0: f(x) = 2x 0≤x≤1

H1: f(x) = 2 − 2x 0≤x≤1
Let α and β denote type I error and type II error, respectively. Find
the test procedure of the form “Reject H0 if x<k” with α = 0.09.
find β for this test.

a. k = 0.5, β = 0.25
b. k = 0.5, β = 0.36
c. k = 0.3, β = 0.16
d. k = 0.3, β = 0.49 [DSE 2012]

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CHAPTER -12
ECOTRIX
1. Regression analysis is concerned with estimating
a. The mean value of the dependent value
b. The mean value of the explanatory variable
c. The mean value of the correlation coefficient
d. The mean value of the fixed variable

2. The locus of the conditional means of Y for the fixed values of X is the
a. Conditional expectation function
b. Intercept line
c. Population regression line
d. Linear regression line

3. E(Y|Xi) = f(Xi) is referred to as

a. Conditional expectation function
b. Intercept line
c. Population regression line
d. Linear regression line

4. Liner regression model is

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a. Linear in explanatory variables but may not be linear in parameters

b. Nonlinear in parameters and must be linear on variables
c. Linear in parameters and must be linear in variables
d. Linear in parameters and may not be linear in variables

5. In Yi = β1+β2Xi = ui’ ui can take values that are

a.Only positive
b.Only negative
c. Only zero
d. Positive, negative or zero

6. In Yi = E (Y|Xi) + ui’, the deterministic component is given by

a. yi
b.E (Y|Xi)
c. ui
d. E(Y|Xi) + ui

7. The sample Regression line is at best an approximation of the

population regression. The statement
a. Is always true
b. Is always false
c. May sometimes be true sometimes false
d.Nonsense statement

8. Yi = 𝛽 1 + 𝛽 Xi + ui represents
a. Sample regression function
b. Population regression function
c. Nonlinear regression function
d. Estimate of regression function

9.Yi = β̂1 +β̂2Xi+ ûi represents

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a. Sample regression function

b. Population regression function
c. Nonlinear regression function
d. Estimate of regression function

10. In Yi = β̂1 + β̂2Xi = ûi’β̂i and β̂2 represent

a. Fixed component
b. Residual component
c. Estimates
d. Estimators

11. In Yi = β̂1 + β̂2Xi = ûI ,’ûirepresent

a. Fixed component
b. Residual component estimated
c. Estimates
d. Estimators

12. In sample regression function, the observed Yi can be expressed as Yi =

Yi + β̂2Xi = ûi. The statement is
̂
a. True
b. False
c. Depend on β̂2
d. Depends on ̂Yi

13. In sample regression function, the observed Yi can be expressed as Yi =

Yi + β̂2Xi = ûi. The statement is
̂
a. True
b. False
c. Depend on β̂2
d. Depends on ̂Yi

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14. In Yi = β̂1 + β̂2Xi + ûI ’̂

uI gives the difference between

a. The actual and estimated Y values

b.The actual and estimated X values
c. The actual and estimated beta values
d. The actual and estimated u values

15. Under the least square procedure, larger the ûi (in absolute terms),
the larger the
a. Standard error
b. Regression error
c. Squared sum of residuals
d. Difference between true parameter and estimated parameter

16.The method of least squares provide with unique estimates of β̂1

and β̂2 that give the smallest possible value of
a. ûi

b.. ûi
 u
̂i
c.
 ̂i
d. 𝐮

17. The least square estimators are

a. Period estimators
b. Point estimators
c. Population estimators
d. Popular estimators

̂) is
18. The mean value of the estimated Y(Y

a. Equal to the mean value of actual Y (𝐘 ̂).

̂).
b. Not equal to mean value of actual Y (Y
c. Equal to the mean value of actual X(X).
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d. Not Equal to mean value of actual X(X).

̂
YiûI and  ûî
Xi
19.
a. Positive values
b. Negative values
c. Equal to zero
d. Any of the above

20. The mean value of ui conditional upon the given Xi is

a. Positive values
b. Negative values
c. Equal to zero
d. Any of the above

21. In classical linear regression model, X i and ui are

a. Positively correlated
b. Negatively correlated
c. Highly correlated
d. Not correlated

22.Homoscedacity refers to the error terms having

a. Zero mean
b. Positive variance
c. Constance variance
d. Positive mean

23. One of the assumptions of CRLM is that the values of the

explanatory variable X must
a. All be positive
b. Not all be the same
c. All be negative
d. Average to zero

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24. In statistics standard error measures the

a. Precision of an estimate
b. Correlation between Y and X
c. Specification error of the model
d. Autocorrelation in the regression model

25. In a two variable linear regression model the slope coefficient

measures

a. The mean value of Y

b. The change in Y which the model predicts for a unit change
in X
c. The change in which the model predicts for a unit change in Y
d. The value of Y for any given value of X

26. The fitted regression of equation is given by Ŷi = -12 + 0.5 X. What
is the value of the residual at the point X=50, Y=70 ?

a. 57
b. -57
c. 0
d. 33

27.What is the number of degrees of freedom for a simple bivariate

linear regression with 100 observations?

a. 100
b.97
c. 98
d. 2

28. Given the assumption of the CRLM, the least squares estimates
possess some optimum properties given by Gauss-Markov
theorem. Which of these statements is NOT part of the theorem

a. The estimators of β̂2 is a linear function of a random variable

b. The average value of the estimator 𝛃 ̂ 2 is equal to zero

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c. The estimator β̂2has minimum variance

d. The estimator β̂2 is unbiased estimator

29.Coefficient of correlation

a. Lies between -1 and +1

b. Is always equal to zero
c. Is a measure of nonlinear dependence of two variables
d. Implies causation in a relationship

30. For coefficient of determination r2 for a regression model

a. r2= 1
b. 0 <r2 <1
c. r2 <1
d. r2 = 0

31. When the estimated slope coefficient in the simple regression

model is zero, then
a. r2 = 1
b. 0 <r2 <1
c. r2 = 1
d. r2 = 0

32. Zero correlation does not necessarily imply independence

between the two variables. The statement is

a. False
b. True
c. Depends on the mean value of X and Y

33. The r2 measures the percentage of the total variation in

a. Y explained by betas
b. Y explained by ûi X explained by Y
c. Y explained by the regression model

34. When γ̂i = Yi for each I in a regression model then the value of r 2
would be

a. r2 = Y
b. 0 <r2 <1
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c. r2 = 1
d. r2 = 0

35. The simplest possible multiple regression model is a

a. One variable model
b. Two variable model
c. Three variable model
d. Multi-variable model

36. Multiple linear regression models

a. Are linear in parameter and linear in variables
b. Are linear in parameter and may not be linear in
variables
c. May not be linear in parameter but are linear in variables
d. May not be linear in parameter and variables

37. In Yi = β1X1i + β2X2i +β3X3i+uiWhere X1i= 1 for all i. This is an

example of

a.Three variable model

b. X variable model
c. Four variable model
d. Three beta model

38. In Yi = β1X1i + β2X2i +β3X3i+ui,the partial regression coefficients are

given by
a. β2 and β2
b. 𝛃2 and 𝛃3
c. β1 and β3
d. β1 and ui

39. In classical linear regression model, Var (ui) = σ2 refers to the

assumption of

a.Zero mean value of disturbance term

b. Homoscedasticity
No autocorrelation
No multicollinearity

40. In classical linear regression model, λ2X2i + λ3X3=0 with λ3=λ3 = O

refers to the ASSUMPTION of
a. Zero mean value of disturbance term

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b. Homoscedasticity
c. No autocorrelation
d. No multicollinearity

41. In classical linear regression model, Cov (ui,uj)=0, i≠j refers to the
assumption of

a. Zero mean value of disturbance term

b. Homoscedasticity
c. No autocorrelation
d. No multicollinearity

42. The assumption of multicollinearity means that

a. There should be no correlation among the regressors

b. There should be no linear relationship among the
regressors
c. There should be no nonlinear relationship among the
rergressors
d. There should be no relationship among the regressors

43. Given Yi = β1X1i + β2X2i +β3X3i+ui, state which of the following

statement is true
a. β2 measures the change in the mean value of Y per unit change
in X2 ,holding the value of X3 constant
b. β3 gives the net effect of a unit change in X3, on the mean value
of Y, net of any effect that X2 may have on mean Y
c. Both a and b are true
d. Neither a nor b is true

44. The measure of proportion or percentage of a variation in Y

explained by the explanatory variables (X2, X3, …) jointly is given by
a. r2
b. R2
c. R
d. None

45. Multiple coefficient of determination measures the

a. Goodness of fit of multiple regression model

b. Homoscedasticity of multiple regression model
c. Heteroscedasticity of multiple regression model

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d. Multicollinearity of multiple regression model

̅2 would be equal to
46. When R2 = 1; R

a. 0
b. +1
c. -1
d. Less than 1

̅2 can take values

47. R
a. Between 0 and 1
b. Between -1 and 1
c. Between -1 and 0
d. Less than +1

48. The Values of R̅2is always less than R2. This statement is
a. Incorrect
b. Correct
c. Depends of k value
d. Depends on n value

49. In comparing two models on the basis of goodness of fit

a. The sample size must be the same

b. The dependent variable must be the same
c. The independent variables must be the same
d. Both a and b above

50. Quadratic function is represented by

a. Yi = β0 +β1 X2i+ui
b. Yi = 𝛃0 +𝛃1 Xi+𝛃2 X2i+ui
c. Yi = β0 +β1 Xi+β2 X2i+β3 X3i+ui
d. Yi = β0 + β1 X3i +ui

51. Given the regression model Yi=β1+β2X2i +β3X3i+ui,, how would you
state the null hypothesis to test that X2 has no influence on Y with
X3 held constant.

a. H0: β1 = 0
b. H0: 𝛃2 = 0
c. H0: β3 = 0

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d. H0: β2 = 0 given β3 = 0

52. In hypothesis testing using t statistics, when the computed t value

is found to exceed the critical t value at the chosen level of
significance, then

a. We reject the null hypothesis

b. We do not reject the null hypothesis
c. It depends on alternate hypothesis
d. It depends on F value

53. A hypothesis such as H0: β2 = β3 = 0, can be tested using

a. t-test
b. Chi-square test
c. ANOVA test
d. F-test

54. In regression model Yi=β1+β2X2i +β3X3i+ui ,testing the overall

significance of the model using F-test, degrees of freedom used (k-
1), (n-1), where k is equal to

a. 2
b. 3
c. 4
d.Sample size

55. When R2 for a regression model is equal to zero, the F value is

equal to

a. Infinity
b. High positive value
c. Low positive value
d. Zero

56. To test for structural break in a time series data, we use

a. t-test
b. F-test
c. MWD test
d. Chow test

57. In the multiple regression model, the adjusted R2

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a. Cannot be negative
b. Will never be greater than the regression R2
c. Equals to square of correlation coefficient r
d. Cannot decrease when an additional explanatory variable is
added

58. For a regression through the origin, the intercept is equal to

a. 1
b. 2
c. 0
d.-1

59. For a regression through the origin, state which of these

statements is NOT true
a.The  ûi need not be equal to zero
b.The raw r2 computed satisfies 0<r<1 and is directly
comparable to the conventionally computed r 2
c. In estimating the model, we use raw sum of squares and cross
products
d. The conventionally computed r2 may give negative value

60. If we multiply both Y and X by 1000 and re-estimate the aggression,

the slope coefficient and its standard error will

a. Increase by 1000 times

b. Decrease by 1000 times
c. Remain same
d. Increase by (1/1000) times

61. If we multiply both Y and X by 1000 and re-estimate the aggression,

the intercept coefficient and its standard error will

a. Increase by 1000 times

b. Decrease by 1000 times
c. Remain same
d. Increase by (1/1000) times

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62. If we multiply Y by 1000 and re-estimate the aggression, the slope

coefficient and its standard error will

a. Increase by 1000 times

b. Decrease by 1000 times
c. Remain same
d. Increase by (1/1000) times

63.If we multiply Y by 1000 and re-estimate the aggression, the

intercept coefficient and its standard error will
a. Increase by 1000 times
b. Decrease by 1000 times
c. Remain same
d. Increase by (1/1000) times

64. If we multiply X by 1000 and re-estimate the aggression, the slope

coefficient and its standard error will
a. Increase by 1000 times
b. Decrease by 1000 times
c. Remain same
d. Increase by (1/1000) times

65. If we multiply X by 1000 and re-estimate the aggression, the

intercept coefficient and its standard error will
a. Increase by 1000 times
b. Decrease by 1000 times
c. Remain same
d. Increase by (1/1000) times

66. If in Yi =  1+  2Xi + ui, both Y and X are standardized variables. The

intercept term will be be

a. Positve
b. Negative
c. Between -1 and +1
d. Equal to zero

67. In double log regression model, the regression slope gives

a. The relative change in Y for an absolute change in X

b. The percentage change in Y for a given percentage
change in X

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c. The absolute change in Y for a percent change in Y

d. By how many units Y changes for a unit change in X

68. In Log-in regression model, the slope coefficient gives

a. The relative change in Y for an absolute change in X

b. The percentage change in Y for a given percentage
change in X
c. The absolute change in Y for a percent change in Y
d. By how many units Y changes for a unit change in X

69. In Lin-Log regression model, the slope coefficient gives

a. The relative change in Y for an absolute change in X

b. The percentage change in Y for a given percentage change in X
c. The absolute change in Y for a percent change in Y
d. By how many units Y changes for a unit change in X

70. In double log model, elasticity of Y with respect to X is given by

a. 𝛃2
b. β2(X/Y)
c. β2X
d. β2(1/Y)

71. In Log-Lin model, elasticity of Y with respect to X is given by

a. β2
b. β2(X/Y)
c.𝛃2X
d. β2(1/Y)

72. In Lin-Log model, elasticity of Y with respect to X is given by

a. β2
b. β2(X/Y)
c.β2X
d. 𝛃2(1/Y)

73. In linear model, elasticity of Y with respect to X is given by

a. β2
b. 𝛃2(X/Y)
c.β2X

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d.β2(1/Y)

74. When comparing r2 of two regression models, the models should

have the same

a. X variables
b.Y variables
c. Error term
d. Beta coefficients.

75. If a quantitative variable has ‘m’ categories, we can introduce

a. Only ‘m-1’dummy variables
b.Only ‘m’dummy variables
c.Only ‘m+1’dummy variables
d.Only ‘m*2’dummy variables

76. ANCOVA models include regressor that are

a.Only quantitative variables

b. Only qualitative variables
c. Only categorical variables
d. Both qualitative and quantitative variables

77. ANOVA models is include

a. Only quantitative variables
b. Only qualitative variables
c. Only categorical variables
d. Both qualitative and quantitative variables

78. Heteroscedasticity means that

a. All X variables cannot be assumed to be homogeneous
b. The Variance of the error term is not constant
c. The observed units have no relation
d. The X and Y are not correlated

79. Heteroscedasticity may result due to the presence of

a. Outliers in the sample
b. Omission of important explanatory
c. Skewness in the distribution of regressors in the model
d. All of the above

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80.Heteroscedasticity is more likely a problem of

a. Cross-section data
b.Time series data
c. Pooled data
d.All of the above

81. The coefficient estimated in the presence of heteroscedasticity are

NOT
a. Unbiased estimators
b. Consistent estimators
c. Efficient estimators
d. Linear estimators

82. Estimating the regression model in the presence of

heteroscedasticity using this method leads to BLUE estimators

a.OLS
b. GLS
c.MLE
d. Two-stage regression estimation

83. In the regression model Yi = β1X0i + β2X1i +ui, if β1is the intercept
coefficient then the values that X0i can take are

a.All ones
b. All zeros
c. Any value
d.Any positive value

2
84. Under park test in 𝑢̂ = In σ2 + 𝛽 In Xi + vi, is the suggested regression
𝑖
model. Here if we find 𝛽 to be statistically significantly different
from zero, this means that
a. Homoscedasticity assumption is satisfied
b. Homoscedasticity assumption is not satisfied
c. We need further testing
d. Xi has impact on Yi

85. According to Goldfeld and Quandt the problem with Park test is
that the

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a.Error term is hetroscedastic

b. Expected value of vi is nonzero
c. vi is serially correlated
Model is nonlinear in parameter

86. The heteroscedasticity test that is sensitive to the normality

assumption or error term is
a.Goldfield-Quandt test
b.Breuseh-Pagan-Godfrey test
c. Whites general heteroscedasticity test
d. Spearman’s rank correlation test

87. The following remedial measure for heteroscedasticity is used when

2
σ is known for a regression model
𝑖
a.Koenker-Bassett method
b. Weighted least square method
c. OLS method
d. White’s procedure

88. Which of the following is NOT considered the assumption about the
pattern of heteroscedasticity

a. The error variance is proportional to Xi

b.The error variance is proportional to Y i
2
c. The error variance is proportional to X
𝑖
d.The error variance is proportional to square of the mean value
of Y

89. When error terms across time series data are intercorrelated, it is
known as
a. Cross correlation
b.Cross autocorrelation
c.Spatial autocorrelation
d. Serial autocorrelation

90. The regression coefficient estimated in the presence of

autocorrelation in the sample date are NOT
a. Unbiased estimators
b. Consistent estimators
c. Efficient estimators
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d. Linear estimators

91. Estimating the coefficient of regression model in the presence if

autocorrelation leads to this test being NOT valid

a. t-test
b. F-test
c. Chi-square test
d. All of the above

92. If in our regression model, one of the explanatory variables included

is the aged value of the dependent variable, then the model is
referred to as
a. Best fit model
b. Dynamic model
c. Autoregressive model
d. First-difference form

93. Regression of Ui on itself lagged one period is referred to as

a. AR(1) model
b. AR(2) model
c. Coefficient of auto-covariance model
d. White noise model

94. In regression model Ut = 𝜌ut-1 + Є1’ -1 <𝜌<+1, 𝜌, 𝜌 is the

a. Coefficient of autocorrelation
b. First-order coefficient of autocorrelation
c. Coefficient of autocorrelation at lag 1
d. All of the above

95. Estimating the regression model in the presence of autocorrelation

using this method leads to BLUE estimators:
a.OLS
b.GLS
c. MLE
d. Two-stage regression estimation

96. The regression model does not include the lagged value(s) of the
dependent variable as one of the explanatory variables. This is
an assumption underlying on eof the following tests of
autocorrelation:

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a. Durbin-Watson d test
b. Runs test
c. Breusch-Godfrey test
d. Graphical method

97. The d-statistics value is limited to

a. 0 to 2
b. 2 to 4
c. 0 to 4
d. 4 ± 2

98. If the durbin-watsond-test statistics is found to be equal to 0, this

means that first-order autocorrelation is

a.Perfectly positive
b. Perfectly negative
c. Zero
d. Imperfect negative correlation

EXAM STYLE QUESTION

1. Consider the following 2-variable linear regression where the error
ei‘s are independently and identically distributed with mean 0 and
variance 1;
yi = α + β(xi − x̅) + ei , i = 1,2, … , n
Let α ̂ and β̂ be ordinary least squares estimates of α and β
respectively. Then the correlation coefficient between α ̂ and β̂ is
a. 1
b. 0
c. – 1
1
d. [ISI 2010]
2

2. Consider the following classical linear regression of y on x,

yi = βxi + ui , i = 1,2, … , n
Where E(ui ) = 0 V(ui ) = σ2 for all I, and u’s are homoscedastic and
non-autocorrelated. Now, let ûi be the ordinary least square
estimate of ui . Then which of the following statements is true?
a. ∑ni=1 ûi = 0

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b. ∑ni=1 ûi = 0 and ∑ni=1 xi ûi = 0

c. ∑ni=1 ûi = 0 and ∑ni=1 xi ûi ≠ 0
d. ∑𝐧𝐢=𝟏 𝐱𝐢 𝐮
̂𝐢 = 𝟎 [ISI 2013]

3. For variables X and Y we have the data:

∑ XY = 350, ∑ X = 50, ∑ Y = 60, X ̅ = 5, σ2X = 4,andσ2y = 9. Which
of the following holds

a) A one unit change in X is associated with a 1.25 unit change in Y, and

a one unit change in Y is associated with a 0.6 unit change in X.
b) A one unit change in X is associated with a 0.6 unit change in Y, and
a one unit change in Y is associated with a 1.25 unit change in X.
c) The covariance between X and Y exceeds ̅ Y
d) The regression of Y on X passes through the origin.[DSE 2008]

4. Suppose you have the following estimated regression equation:

ln 𝑌=1.2+0.5 X. Which of the following is a good interpretation of
the estimated relationship between X and Y?

a) A unit change in X is associated with a 50 percent change in Y

b) A unit change in X is associated with a 0.5 percent change in Y
c) A one percent change in X is associated with a 50 unit change in Y
d) A one percent change in X is associated with a 0.5 unit change in Y
[DSE 2011]

5. Consider the following equation to be estimated using ordinary least

squares:
𝑌 = 𝑎0 + 𝑎1 𝑋1 + 𝑎2 𝑋2 + 𝑎3 (𝑋2 − 𝑋1 ) + 𝑎4 𝑋1 𝑋2 + 𝑢

Which of the following statements is true?

a) The parameter 𝑎0 , 𝑎1 , 𝑎2 , 𝑎4 can be estimated but not 𝑎3
b) The parameter 𝒂𝟎 and 𝒂𝟒 can be estimated but not 𝒂𝟏 , 𝒂𝟐 , 𝒂𝟑
c) The parameter 𝑎0 , 𝑎1 , 𝑎2 , 𝑎3 can be estimated, but not 𝑎4
d) All parameters can be satisfied [DSE 2011]

6. A researcher wants to test whether there are gender differences in

the rates of immunization for boys and girls, after controlling for

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parental income, mother’s education and access to health care

facilities. The easiest way to test this would be to:
a) Include one dummy variable in the multiple regression.
b) Include two dummy variables in the multiple regression.
c) Include interaction dummies in the multiple regression
d) Run two separate regressions-one for boys and one for girls
[DSE 2011]

7. Instead of estimating a production function y = a0 + a1 K + a2 L + u,

where y is output, K is capital input and L is labour input, a
researcher estimates y =a0 + a1 K + u. It is known that in the true
model a2 > 0 and K and L are complements. Which of the following
is true?

a) The estimated 𝐚𝟏 will be upwardly biased

b) The estimated a1 will be downward bias
c) The estimated a1 will be biased, but the direction of bias cannot be
determined
d) The estimated a1 will be unbiased, but a0 will be biased
[DSE 2011]
8. Which of the following statements is not an indicator that
multicollinearity among two or more variables is present in a
multiple regression model estimated using OLS:

a) Small changes to the data can cause large changes to estimated

coefficients
b) Coefficients are estimated with bias
c) The estimated coefficients have large standard errors even through
the R2 is high
d) A test of joint significance of two or more coefficients is significant
even though individually they are not significant[DSE 2012]

9. Given the linear regression Y = α + βX; a very high correlation

between variables X and Y necessarily implies that

a) The slope coefficient β is statistically significant

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b) The observations (x, y) lie along a straight line

c) Small changes in X cause large changes in Y
d) The regression line is steep [DSE 2012]

10. Consider the following model, estimated using OLS

Yi = βX i + ℰi ; i = 1,2, … n

Where there is no intercept, and Var(ℰi ) = σ2 . Which of the following

statements is not true?

a) The R2 from this regression can be large even if X and Y have low
correlation
b) The least squares residuals need not sum to zero[DSE 2012]
c) The mean square error is given by ∑(Yi − Ŷ)2/(n − 1)
d) The least squares estimator of the slope coefficient is given by:
𝐧 ∑ 𝐗 𝐢 𝐘𝐢 − ∑ 𝐗 𝐢 ∑ 𝐘𝐢
𝐧 ∑ 𝐗 𝟐𝐢 − (∑ 𝐗 𝐢 )𝟐

11. An analyst trying to estimate the demand for rice has estimated the
following two models

Model 1: D = 50 + 0.3Y + 0.1P + 12N; R2 = 0.7

Where D is the demand for rice per household, Y is income per

household, P is the price of rice and N is household size. The
standard errors associated with P is 0.05, and of N is 3.

Model 2: D/N = 50 + 0.2 Y/N – 0.5P; R2 = 0.9

Where the standard errors of the estimated slope coefficients are 0.1
and 0.2 respectively.which of the following statements is true?

a) Model 2 is preferred to Model 1 because it has a higher R 2

b) Model 1 is preferred to Model 2 because the coefficients are all
significant
c) The two models are not comparable in terms of fit
d) None of the above[DSE 2012]

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12. Consider the regression Yi∗ = β̂1∗ + β̂∗2X i∗ + û∗i , and Yi = β̂1 + β̂2 X i + ui ,
where Yi∗ = w𝟏 Y𝐢 and X ∗i = w2X 𝐢 ; w1, w2 are constants. Is it true that

β̂1∗ = w2β̂1
w2
β̂∗2 = β̂
w1 2
𝟐
̂ ∗𝟐 ) = (𝐰𝟐 ) Var(𝛃
Var(𝛃 ̂𝟐 )
𝐰𝟏
2 2
rxy ≠ rx∗ y∗ where r denotes correlation coefficient[DSE 2012]

For variable X and Y we have the data

̅ = 5, σ2X = 4, σ2Y = 9
∑ XY = 350, ∑ X = 50, ∑ Y = 60, X

̅ denotes the mean of X and σ2X denotes the variance of X.

Where X
Which of the following holds?

a) A unit change in X causes a 1.25 unit change in Y, and a one unit

change in Y causes a 0.6 unit change in X
b) A unit change in X causes a 0.6 unit change in Y, and a one unit
change in Y causes a 1.25 unit change in X
c) A 10% change in X causes a 15% change in Y
d) The regression of Y on X passes through the origin[DSE 2012]

13. A linear regression mode y= α + βx + ε is estimated using OLS. It

turns out that the estimated β̂ equals zero. This implies that:

a) R2 is zero
b) R2 is one
c) 0 < R2 < 1
d) In this case the R2 is undefined[DSE 2013]

14. A linear regression model y = α + βx + ε is estimated using OLS. It

turns out that the estimated R2 equal zero. This implies that:

a) All x‘s are necessarily zero

b) β̂ = 1 and y = α̂+x
c) ̂ = 0 or all x’s are constant
𝛃
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d) There are no implications for β̂[DSE 2013]

15. Using ordinary least squares, a market analyst estimates the

following demand function
log X = α + βlogP + ϵ

Where X is the output, and P is the price. In another formulation, she

estimates the above function after dividing all prices by 1000.
Comparing the two sets of estimates she would find that
̂ and β̂ will be the same in both formulations
a) α
̂ and β̂ will differ across both formulations
b) α
c) 𝛂̂ will change but 𝛃̂ will not [DSE 2013]
d) β̂ will change but α̂ will not

16. A linear regression model is estimated using ordinary least squares y

= α + βx + ε. But the variance of the error term is not constant, and
in fact varies directly with another variable z, which is not included in
the model. Which of the following statements is true?
a) The OLS estimated coefficients will be biased because of the
correlation between x and the error term.
b) The OLS estimated coefficients will be unbiased but their
estimated standard errors will be biased.
c) The OLS estimated coefficients will be unbiased and so will their
estimated standard errors because the error variance is not
related to x, but to z which is not included in the model.
d) Both the OLS estimated coefficients and their estimated
standard errors will be biased.[DSE 2013]

17. Consider the linear regression model: 𝑦𝑖 = 𝛽1𝐷1𝑖 + 𝛽2 𝐷2𝑖 + 𝜖𝑖

where 𝐷1𝑖 = 1 if 1 <i <N and 𝐷1i = 0 if N + 1 < i<n for some
I<N<n; and 𝐷2𝑖 = 1 - 𝐷2𝑖 . Can this model be estimated using
least squares?

a) No, because D1 and D2 are perfectly collinear

b) Yes, and it is equivalent to running two separate regressions of y
on D1 and y on D2, respectively
c) No, because there is no variability in D1 and D2

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d) Yes, provided an intercept term is included.[DSE 2014]

18. Consider the least squares regression of y on a single variable x.

Which of the following statements is true about such a regression?

a) The coefficient of determination R2 is always equal to the

squared correlation coefficient between y and x
b) The coefficient of determination R2 is equal to the squared
correlation coefficient between y on x only if there is no
intercept in the equation
c) The coefficient of determination R2 is equal to the squared
correlation coefficient between y on x only if there is an
intercept in the equation.
d) There is no relationship between the coefficient of
determination R2 is always equal to the squared correlation
coefficient between y and x[DSE 2014]

19. An analyst runs two least squares regressions: first, of y on a single

variable x, and second, of x on y. in both cases, she decides to
include an intercept term. Which of the following is true of what
she finds?

a) The slope coefficient of the first regression will be the inverse

of the slope coefficient of the second regression; this will also
be true of the associated t-ratios
b) The slope coefficient will be different, the associated t-ratios
will also be different, but the R2 from the two regressions will
be the same
c) The slope coefficient will be different, but the associated t-ratios
and the R2 from the two regressions will be the same
d) The slope coefficients will be the inverse of each other, the
associated t-ratios will also be the inverse of each other, but the
R2 from the two regressions will be the same[DSE 2014]

20. Three questions pertain to the following: A simple linear regression

of wages on gender, run on a sample of 200 individuals, 150 of
whom are men, yields of following
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wi = 300 − 50Di + ui
(20)(10)

Where wi is the wage in Rs per day of the ith individual, Di = 1 if

individual i is male, and 0 otherwise, ui is a classical error term, and
the figures in parentheses are standard errors.[DSE 2015]
1. What is the average wage in the sample?

a) Rs. 250 per day

b) Rs. 275 per day
c) Rs. 262.50 per day
d) Rs. 267.50 per day

2. The most precise estimate of the difference in wages between

men and women would have been obtained if, among these 200
individuals,

a) There were an equal number (100) of men and women in the

sample
b) The ratio of the number of men and women in the sample was
the same as the ratio of their average wages
c) There were at least 30 men and 30 women; this is sufficient for
estimation: precision does not depend on the distribution of
the sample across men and women
d) None of the above

3. The explained (regression) sum of squares in this case is:

a) 93750
b) 1406.25
c) 15000
d) This cannot be calculated from the information given

21. An analyst estimates the model Y = β1 + β1 X1 + β2 X 2 + β3 X 3 + u

using OLS. But the true β3 = 0. In this case, by including X 3

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a) There is no harm done as all the estimates would be unbiased

and efficient
b) There is a problem because all the estimates would be biased
and inconsistent
c) The estimates would be unbiased but would be have larger
standard error [DSE 2015]
d) The estimates may be biased but they would still be efficient

22. Let β̂ be the OLS estimates of the slope coefficient in a regression of Y

on X1. Let 𝛽̃ be the OLS estimator of the coefficient on X 1 on a
regression on Y on X1 and X2. Which of the following is true:

a) ̂ ) < Var(𝜷
Var(𝛃 ̃)
b) Var(β̂) > Var(𝛽̃)
c) Var(β̂) < or > Var(𝛽̃)
d) Var(β̂) = Var(𝛽̃)

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