Objective

Statistics
• For Under-Graduate and Post-Graduate Students of Statistics, Mathematics and Computer Science;
I.S.S., CSIR (NET, JRF), I.I.T. JAM, S.S.C., R.B.I. and other Competitive Examinations
• Contains over 1,600 Objective Types Questions along with Solutions

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S.C. Gupta
Sanjeev Kumar Gupta
Ananya Gupta

Sultan Chand & Sons

 ObjectiveObjective
StatisticsStatistics
For Under Graduate and Post Graduate students of Statistics, Mathematics and Computer Science;
I.S.S. / CSIR (NET, JRF), I.I.T JAM, GATE, S.S.C., R.B.I. and other Competitive Examinations

S.C. Gupta
M.A. (Statistics), M.A. (Maths); MS. (USA)
Associate Professor in Statistics (Retd.)
Hindu College, University of Delhi,
Delhi
Sanjeev Kumar Gupta Ananya Gupta
CFA, M.Sc., M. Phil (Statistics) BSc. Mathematics, Exeter University, UK
Director, Certification in Data Science & Machine Learning,
Dept. of Statistics and Information Management (DSIM), Harvard University, USA
RBI, Central Office, Mumbai

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 P

Preface

Most institutions / organisations in India are conducting examinations under ' Multiple Choice Tests ' ,
which appears to be a very effective technique. Most of the students, who study Statistics used to work
through short answers for problem solving and often, are not prepared for Multiple Choice Questions,
(M.C.Q.'s). This book is planned to cover the syllabus of most of the examinations conducted in India
and gives the students a large number of questions / problems for their learning and practice. This book
will also be useful for students appearing in the examinations in the field of Statistics with the rigour of
competitive examinations . The book covers the topics of Mathematical Statistics, generally asked under
the various examinations, viz . ,
1. Indian Statistical Services (I.S.S.) ;
2. Staff Selection Commission (S.S.C.) ;
3. Junior Statistical Officers (JSO) ;
4. Joint Admission Test for Masters. (JAM) conducted by Indian Institute of Technology (I.I.T.);
5. CSIR (J.R.F. / NET) for Subject Mathematical Sciences;
6. Reserve Bank of India, (RBI) ;
7. Various Entrance Examinations, for admission in M.Sc. and Ph.D. courses in Indian Universities;
8. ' Common University Entrance Test' (CUET) for admission in Central Universities across India.
The M.C.Q.'s asked in the examination are generally framed :
(a) To test the understanding and applications of the ' definitions' of various terms used in the
theory.
(b) To test the understanding and applications of the ' Statements of Theorems ' , including the
conditions (whether necessary or sufficient or both), under which they are valid.
(c) To test the accuracy of the numerical computations and use of ' Statistical Tables' .
The best way to solve any problem lies in extracting the maximum information (explicit or implicit
or both), from the language of the problem and then use it systematically in proper sequence to solve
the problem.
The present book is a modest though determined bid to meet the requirements of the students
of Mathematical Statistics at Degree, Honours and Post-graduate levels, and those preparing for the
competitive examinations listed in the first paragraph.
The book is designed after carefully analysing the syllabus and papers of various competitive
examinations and the whole relevant theory is written in such a way that the students may easily and
effectively understand the key / basic concepts of mathematical statistics and use them intelligently in
 iv Objective Statistics

solving the problems in minimum possible time. The problems asked in the competitive examination are
innovative, some of which are really tough and difficult and often require some out of the box ' solutions.
The book contains 13 Chapters, containing 34 Exercise Sets and 1607 M.C.Q.'s or Problems.
(A) While keeping in mind the varied requirements at different levels, an attempt has been made
to start each Chapter with a brief summary of the important definitions, theorems and the main
results on each topic, thus covering all the basic concepts of that topic .
(B) This is followed by a number of “Exercise Sets ", containing M.C.Q.'s on various topics covered
in the Chapter. A variety of M.C.Q.'s have been framed on each topic keeping in mind the points
(a), (b) and (c) in paragraph 2.
In addition, a number of M.C.Q.'s selected from various competitive examination papers have
also been included in the Exercise Sets . An attempt has been made to start with simple problems
and then harder and advanced problems have been given .
(C) Each ' Exercise Set', is followed by the ' Answer Sheet' .
(D) Each ' Answer Sheet' , is followed by ' Solutions To Exercise Set ' , in which the solution to each
question in the Exercise Set has been provided. The main emphasis is on the understanding of
the definitions / theorems and their applications, and expose the readers to different techniques
of tackling the problem and enable them to have a better and thoughtful understanding of the
basic concepts of the subject.
At many places "Explanatory Remarks ", and ' Alternative Methods ' , have been given to widen the
readers ' horizon. This will enable the readers to have a proper appreciation of the subject matter and
fortify their confidence in the understanding and application of various methods. A careful study of the
' Solutions ofthe Problems ' , is bound to motivate and stimulate the readers to work out any other problem
independently and instill confidence in them .
Note: After carefully studying the theory, the readers are advised to try to solve the problems
themselves without looking at the solutions. If they fail to solve them, only then they should look at the
solutions .

There are few books by other publishers on M.C.Q.'s in Statistics but they are very elementary and
hardly cater to the requirements of the students preparing for the examinations listed in paragraph 1 .
Most of them have not given answers to the exercise sets . A special feature of our book is that we have
provided ' Answer Sheets ' , as well as ' Solutions ' , to each problem in the Exercise Sets. Thus, our book
is quite exhaustive and caters to the requirements of a very large number of students .
We take this opportunity to express our sincere gratitude and thanks to Prof. Kamal Nain Kapoor,
Hindu College, Delhi University, Delhi for his valuable help and suggestions in the preparation of this book.
Last, but not the least, we express our deep sense of thanks and gratitude to our publishers Sultan
Chand& Sons, Darya Ganj, Delhi for their untiring efforts, unfailing courtesy and co-operation in bringing
out the book in such an elegant form .
Every effort has been made to eliminate the mistakes and printing errors, though some might have crept
in inadvertently. We shall be obliged if any such errors are brought to our notice. Valuable suggestions
and fruitful criticism for the improvement of the book will be highly appreciated and duly incorporated
in the subsequent edition.
S.C. Gupta
Sanjeev Kumar Gupta
Ananya Gupta
4th February, 2024
 C
Contents

1. Descriptive Measures
Measures of Central Tendency, Dispersion, Skewness and Kurtosis 1.1-1.72
1.1. Frequency Distribution 1
1.1.1. Symbols, Results and Formulae 3
1.2. Graphic Representation of Frequency Distributions 5
1.2.1. Histogram 5
1.2.2. Frequency Polygon 5
1.2.3. Frequency Curve 6
1.2.4. Ogive or Cumulative Frequency Curve 6
1.3. Measures of Central Tendency or Averages 7
1.3.1. Arithmetic Mean (A.M.) 8
1.3.2. Median (Md) 9
1.3.3. Mode (Mo) 11
1.3.4. Geometric Mean (G.M.) 12
1.3.5. Harmonic Mean (H.M.) 13
1.3.6. Relation between Arithmetic Mean (A.M.),
Geometric Mean (G.M.) and Harmonic Mean (H.M.) 14
1.3.7. Partition Values (Quartiles, Deciles and Percentiles) 14
1.4. Measures of Dispersion 15
1.4.1. Range 15
1.4.2. Quartile Deviation or Semi Inter-Quartile Range 16
1.4.3. Mean Deviation or Average Deviation 16
1.4.4. Standard Deviation 17
1.4.5. Variance and Mean Square Deviation 17
1.4.6. Coefficient of Variation (C.V.) 20
1.5. Moments 20
1.5.1. Moments about Mean 20
1.5.2. Moments about Arbitrary Point X = A 21
1.5.3. Relation between mr and mr′ = mr′ (A) 21
1.5.4. Effect of Change of Origin and Scale on Moments 22
1.5.5. Sheppard’s Correction for Moments 22
1.5.6. Absolute Moments 23
1.6. Skewness 23
vi Objective Statistics

1.6.1. Measures of Skewness 23

1.7. Kurtosis 25
Exercise – 1.1 Problems based on Frequency Distributions, Graphical
Representation of Frequency Distributions and
Diagrammatical Representation of Data 25
Answers to Exercise – 1.1 28
Solutions to Exercise – 1.1 28
Exercise – 1.2 Problems based on Measures of Central Tendency 29
Answers to Exercise – 1.2 35
Solutions to Exercise – 1.2 35
Exercise – 1.3 Problems based on Measures of Dispersion 45
Answers to Exercise – 1.3 51
Solutions to Exercise – 1.3 51
Exercise – 1.4 Problems based on Moments, Measures of Skewness and Kurtosis 64
Answers to Exercise – 1.4 67
Solutions to Exercise – 1.4 67
2. Theory of Probability 2.1-2.122
2.1. Introduction 1
2.2. Terminology 1
2.3. Permutation and Combination 3
2.3.1. Permutation 3
2.3.2. Combination 4
2.4. Mathematical or Classical or ‘A Priori’ Probability 5
2.4.1. Limitations of Classical Probability 5
2.5. Statistical or Empirical Probability 5
2.5.1. Limitations 6
2.6. Axiomatic Probability 6
2.6.1. Sample Space 6
2.6.2. Mutually Exclusive or Disjoint Events 7
2.6.3. Definition (Axiomatic Probability) 7
2.6.4. Events as Sets – Glossary of Probability Terms 7
2.6.5. Probability – Mathematical Notion 8
2.7. Addition Theorem of Probability 9
2.7.1. Addition Theorem of Probability for Mutually Exclusive Events 9
2.7.2. Booleʼs Inequality 10
2.8. Multiplication Theorem of Probability or Theorem of Compound Probability 10
2.8.1. Independent Events 11
2.8.2. Multiplication Theorem of Probability for Independent Events 11
2.9. Pairwise and Mutual Independence 12
2.10. Subjective Probability 12
2.11. Geometric Probability 13
2.12. Bayes’ Theorem or Rule for Inverse Probability 13
Exercise – 2.1 Problems based on Definition 13
Answers to Exercise – 2.1 18
Solutions to Exercise – 2.1 18
Exercise – 2.2 Problems based on Addition and Multiplication
Theorems of Probability 31
 Contents vii

Answers to Exercise – 2.2 51

Solutions to Exercise – 2.2 51
Exercise – 2.3 Problems based on Geometric Probability 97
Answers to Exercise – 2.3 100
Solutions to Exercise – 2.3 100
Exercise – 2.4 Problems based on Bayes Theorem 109
Answers to Exercise – 2.4 113
Solutions to Exercise – 2.4 113
3. Random Variables and Distribution Functions 3.1-3.54
3.1. Introduction 1
3.2. Discrete and Continuous Random Variables 2
3.3. Probability Distribution of a Discrete Random Variable and its p.m.f. 2
3.4. Probability Density Function of a Continuous Random Variable and its p.d.f. 3
3.5. Various Descriptive Measures for Continuous Probability Distribution 4
3.6. Distribution Function of a Random Variable 5
3.6.1. Continuous Distribution Function 5
3.6.2. Discrete Distribution Function 6
3.7. Two Dimensional Random Variable 7
3.7.1. Joint Probability Mass Function (p.m.f.) 7
3.7.2. Joint Probability Density Function (p.d.f.) 7
3.8. Marginal Distributions 8
3.9. Conditional Probability Functions 8
3.10. Two Dimensional Distribution Function 9
3.10.1. Properties of Joint Distribution Function 9
3.11. Independence of Random Variables 9
3.12. Generalisation to n-Random Variables 10
3.13. Transformation of One Dimensional Random Variable 10
3.14. Transformation of Two Dimensional Random Variable 11
3.15. Some Important Results on Random Variables 12
Exercise – 3.1 Problems on Random Variables and Distribution Function 13
Answers to Exercise – 3.1 25
Solutions to Exercise – 3.1 25
4. Mathematical Expectation and Generating Functions 4.1-4.69
4.1. Introduction 1
4.2. Important Theorems on Expectation 2
4.3. Some Important Results on Expectation 3
4.3.1 Various Descriptive Measures in Terms of Expectation 4
4.4. Covariance 5
4.4.1. Important Results on Covariance 5
4.4.2. Some Results on Variance 6
4.5. Expectation (Two Dimensional Case) 6
4.5.1. Conditional Expectation 7
4.5.2. Important Results on Conditional Mean and Variance 7
4.6. Moment Generating Function (M.G.F.) 8
4.6.1. Limitations of M.G.F 8
4.6.2. Properties of M.G.F. 8
viii Objective Statistics

4.7. M.G.F. of Bivariate and Multivariate Random Variables 10

4.8 . Characteristic Function 10
4.8.1 . Properties of Characteristic Functions 11

4.8.2. Necessary Conditions for a Function (t)

to be the Characteristic Function of a r.v. 11
4.8.3 . Sufficient Conditions for a Function to be Characteristic Function 12

4.8.4 . Necessary and Sufficient Conditions for a Function to be

Characteristic Function 12
4.8.5 . Test for a Function not to be a Characteristic Function 13
4.9 . Some Theorems on Characteristic Functions 13
4.9.1. Some Inequalities on Characteristic Functions 14

4.10. Cumulants and Cumulant Generating Function 14

4.10.1 . Relation between Cumulants and Moments 14
4.10.2 . Properties of Cumulants 15

4.11 . Probability Generating Function 15

4.11.1 . Important Results on p.g.f.'s 15

4.11.2. Theorems on p.g.f.'s 16

Exercise - 4.1 Problems on Mathematical Expectation and Distribution Function 17
Answers to Exercise – 4.1 30
Solutions to Exercise – 4.1 30

5. Discrete Probability Distributions 5.1-5.76

5.1 . Discrete Uniform Distribution 1

5.1.1 . Important Properties 1

5.2 . Bernoulli Distribution 1
5.3 . Binomial Distribution 2

5.3.1 . Important Properties of B(n, p) Distribution 2

5.3.2 . Characterisation of Binomial Distribution 3

5.3.3 . Important Results on Binomial Distribution 3

5.4 . Poisson Distribution 3

5.4.1 . Important Properties of Poisson Distribution 4

5.4.2. Characterisation of Poisson Distribution 4

5.4.3 . Important Results on Poisson Distribution 5

5.5 . Geometric Distribution 5
5.5.1 . Characterisation of Geometric Distribution 5
5.5.2. Important Results on Geometric Distribution 6

5.6 . Negative Binomial Distribution 6

5.6.1 . Important Properties of Negative Binomial Distribution 7

5.7. Hyper-geometric Distribution 8

5.7.1 . Properties of Hyper-Geometric Distribution 8

5.7.2 . Important Results on Hyper-Geometric Distribution 9
5.8 . Multinomial Distribution 9

5.8.1 . Important Properties of Multinomial Distribution 9

5.8.2 . Important Results on Multinomial Distribution 10

5.9 . Logarithmic Series 10
5.9.1 . Important Properties 10
Exercise - 5.1 Problems based on Binomial Distribution 11
 Contents ix

Answers to Exercise – 5.1 18

Solutions to Exercise – 5.1 18
Exercise – 5.2 Problems based on Poisson Distribution 36
Answers to Exercise – 5.2 42
Solutions to Exercise – 5.2 42
Exercise – 5.3 Problems based on Geometric Distribution 59
Answers to Exercise – 5.3 61
Solutions to Exercise – 5.3 61
Exercise – 5.4 Problems based on Negative Binomial,
Hyper-Geometric and Multinomial Distributions 67
Answers to Exercise – 5.4 71
Solutions to Exercise – 5.4 71
6. Theoretical Continuous Distributions 6.1-6.89
6.1. Normal Distribution 1
6.1.1. Important Properties of Normal Distribution N(µ, σ2) 1
6.1.2. Characterisation of Normal Distribution 3
6.1.3. Some Important Results 4
6.2. Log-normal Distribution 4
6.2.1. Properties 4
6.3. Uniform or Rectangular Distribution 4
6.3.1. Important Properties of Uniform Distribution 4
6.3.2. Some Important Results on Uniform Distribution 5
6.4. Exponential Distribution 6
6.4.1. Properties of Exponential Distribution 6
6.4.2. Some Important Results on Exponential Distribution 7
6.4.3. Two Parameters Exponential Distribution 9
6.4.4. Characterisation of Exponential Distribution 10
6.5. Standard Laplace Distribution 10
6.5.1. Important Properties of Standard Laplace Distribution 10
6.5.2. Two Parameters Laplace Distribution 10
6.5.3. Important Result 11
6.6. Gamma Distribution 11
6.6.1. Important Properties of Gamma Distribution 11
6.6.2. Two-Parameters Gamma Distribution 12
6.6.3. Characterisation of Gamma Distribution 13
6.6.4. Some Important Results on Gamma Distribution 13
6.7. Beta Distribution of First Kind 14
6.7.1. Important Properties of Beta Distribution of First Kind 14
6.7.2. Important Results on Beta Distribution of First Kind 15
6.8. Beta Distribution of Second Kind 15
6.8.1. Important Properties of Beta Distribution of Second Kind 15
6.8.2. Important Results on Beta Distribution of Second Kind 15
6.9. Cauchy Distribution 16
6.9.1. Important Properties of Standard Cauchy Distribution 16
6.9.2. Some Important Results on C(1, 0) Distribution 17
6.9.3. Two Parameters Cauchy Distribution 17
X Objective Statistics

6.9.4. Important Properties of C ( λ , μ) Distribution 17

6.10 . Weibull Distribution 18
6.10.1 . Important Properties of Weibull Distribution 18
6.10.2 . Important Results of Weibull Distribution 19
6.11 . Order Statistics 19
19
6.11.1 . p.d.f. ofX(n) , the Largest Observation
19
6.11.2 . p.d.f. ofX(1 ) , the Smallest Observation
19
6.11.3 . p.d.f. ofX(r) , the rth Order Statistic
19
6.11.4. Joint p.d.f. ofX(r) andX(s)
6.11.5. Joint p.d.f. of all n Order Statistics 20
r< s 20
6.11.6 . Distribution of Wrs = X(s) –X(r) ;
20
6.11.7. Distribution of Range : W = X(n) -X(1)
6.11.8. Important Result on Order Statistics 20

6.12 . Truncated Distributions 21

Exercise - 6.1 Problems on Normal Distribution and Logonormal Distribution 22

Answers to Exercise – 6.1 26
Solutions to Exercise – 6.1 27
Exercise – 6.2 Problems of Uniform Distribution 37
Answers to Exercise – 6.2 40
Solutions to Exercise – 6.2 40

Exercise - 6.3 Problems on Exponential Distribution 51

Answers to Exercise – 6.3 55

Solutions to Exercise – 6.3 55

Exercise - 6.4 Problems on Gamma, Beta - 1 , Beta - 2 ,
Laplace and Cauchy Distributions, and Order Statistics 64
Answers to Exercise – 6.4 72
Solutions to Exercise – 6.4 72

7. Chebyshev's Inequality, Strong and Weak Law of Large Numbers,

and Central Limit Theorem 7.1-7.51

7.1 . Chebyshev's Inequality 1

7.1.1 . Generalised Bienaymé-Chebyshev's Inequality 1

7.1.2 . Markov's Inequality 1

7.2. Modes of Convergence of a Sequence of Random Variables 2

7.2.1 . Convergence in Probability 2

7.2.2. Almost Sure Convergence or Convergence with Probability One 2

7.2.3 . Convergence in rth Mean 3

7.2.4 . Convergence in Mean Square or Quadratic Mean 3

7.2.5 . Convergence in Law or Convergence in Distribution 4

7.2.6. Inter-Relationship between Different Modes of Convergence 4

7.3 . Weak Law of Large Numbers (W.L.L.N.) 5

7.3.1 . Khinchin's Weak Law of Large Numbers 5

7.3.2. Necessary and Sufficient Condition for W.L.L.N. 6

7.4. Strong Law of Large Numbers (S.L.L.N.) 6

7.4.1 . Kolmogorov's First Theorem on S.L.L.N. 6

7.4.2 . Kolmogorov's Second Theorem on S.L.L.N. 6

7.5. Central Limit Theorem (C.L.T.) 7

 Contents xi

7.5.1 . De Moivre – Laplace Central Limit Theorem 7

7.5.2. Lindeberg – Levy Theorem for i.i.d. Random Variables 7

7.5.3 . Liapounoff's Central Limit Theorem 8
7.5.4 . Cramer's Theorem 9

Exercise - 7.1 Problems Based on Chebyshev's Inequality 9

Answers to Exercise – 7.1 12
Solutions to Exercise – 7.1 12

Exercise -7.2 Problems Based on Modes of Converence in Probability, Weak Law of

Large Numberes (W.L.L.N.) and Strong Law of Large Numbers 19
Answers to Exercise – 7.2 22

Solutions to Exercise – 7.2 22

Exercise -7.3 Problems Based on Central Limit Theorem 30

Answers to Exercise – 7.3 35
Solutions to Exercise – 7.3 35

8. Correlation and Regression 8.1-8.71

8.1 . Introduction 1
8.2. Positive and Negative Correlation 1

8.3 . Scatter Diagram 1

8.4. Karl Pearson's Coefficient of Correlation Method 2

8.4.1 . Different Formulae for Computing r(X, Y) 2

8.4.2 . Properties of Pearson's Correlation Coefficient r = r(X, Y) 3

8.5. Spearman's Rank Correlation Method 4

8.5.1 . Limits for Spearman's Rank Correlation Coefficient i.e. , Limits for p 5

8.5.2 . Computation of Rank Correlation Coefficient (p) 5

8.6 . Probable Error 6

8.7. Coefficient of Determination 6

8.8 . Regression Analysis 6

8.9. Linear and Non-linear Regression 6

8.10 . Lines of Regression 7

8.10.1 . Equations of Lines of Regression 7

8.10.2 . Some Important Remarks on Lines of Regression 7

8.11 . Coefficients of Regression 8

8.11.1 . Determination of Regression Coefficients 9

8.11.2 . Different Formulae for Computing Regression Coefficients 9

8.11.3 . Properties of Regression Coefficients 9

8.12. Curvilinear Regression 10

8.13 . Correlation Ratio 11
8.13.1 . Some Results on ηγx 12
8.14 . Intraclass Correlation 12

8.15. Multiple and Partial Correlation 13

8.15.1 . Multiple Correlation Coefficient 13

8.15.2 . Partial Correlation Coefficient 14

8.15.3 . Relation between Total, Multiple and Partial Correlation Coefficients 14

Exercise – 8.1 Problems on Correlation Coefficient, Correlation Ratio
and Rank Correlation Coefficient 15
Answers to Exercise – 8.1 24
Solutions to Exercise – 8.1 25
xii Objective Statistics

Exercise – 8.2 Problems on Curve-Fitting, Linear Regression and

Regression Coefficients 44
Answers to Exercise – 8.2 51
Solutions to Exercise – 8.2 51
Exercise – 8.3 Problems on Multiple and Partial Correlation and Regression 66
Answers to Exercise – 8.3 67
Solutions to Exercise – 8.3 67
9. Chi-square, t, F and Z Distributions and Z Transformation 9.1-9.62
9.1. Chi-square Distribution 1
9.1.1. Important Properties of Yn2 Distribution 1
9.1.2. Some Important Theorems and Results on Chi-Square Distribution 2
9.1.3. Critical Values of Yn2- Distribution 5
9.1.4. Applications of Chi-square Distribution 5
9.2. t - Distribution 9
9.2.1. Important Properties of t-Distribution 9
9.2.2. Student’s t-Statistic 10
9.2.3. Fisher’s t 11
9.2.4. Critical Values of ‘t’ 11
9.2.5. Application of t- Distribution 12
9.3. F Distribution 14
9.3.1. Important Properties of F Distribution 14
9.3.2. Important Results and Theorems on F Distribution 15
9.3.3. Critical or Significant Values of F Distribution 15
9.3.4. Applications of F Distribution 15
9.4. Fisher’s Z Distribution 16
9.4.1. Important Properties of Z Distribution 17
9.5. Fisher’s Z Transformation 17
Exercise – 9.1 Problems Based on Chi-Square Distribution 18
Answers to Exercise – 9.1 24
Solutions to Exercise – 9.1 24
Exercise – 9.2 Problems Based on ‘t’ Distribution, F and Z Distributions,
and Z Transformation 37
Answers to Exercise – 9.2 46
Solutions to Exercise – 9.2 46
10. Bivariate Normal Distribution 10.1-10.20
10.1. Bivariate Normal Distribution 1
10.1.1 Important Characteristics of Bivariate Normal Distribution 1
Exercise – 10.1 Problems based on Bivariate Normal Distribution 4
Answers to Exercise – 10.1 7
Solutions to Exercise – 10.1 7
11. Theory of Estimation–1 (Point Estimation) 11.1-11.126
11.1. Introduction 1
11.2. Characteristics of Estimators 2
11.2.1. Unbiasedness 2
11.2.2. Consistency 3
 Contents xiii

11.2.3. Efficiency 5
11.2.4. Sufficiency 5
11.3. Complete Family of Distributions 7
11.3.1. Ancillary Statistics 8
11.4. Uniformly Minimum Variance Unbiased Estimators (UMVUE) 8
11.4.1. Best Linear Unbiased Estimator (BLUE) 9
11.4.2. Cramer-Rao Inequality 9
11.5. MVUE and Blackwellisation 10
11.6. Methods of Estimation 11
11.6.1. Method of Maximum Likelihood Estimation 11
11.6.2. Method of Minimum Variance Unbiased Estimators (M.V.U.E. Method) 13
11.6.3. Method of Moments (M.O.M.) 13
11.6.4. Method of Least Squares 15
Exercise – 11.1 Problems on Unbiasedness, Consistency and Efficiency 15
Answers to Exercise – 11.1 26
Solutions to Exercise – 11.1 26
Exercise – 11.2 Problems based on Sufficiency, Completeness,
CRLB, MVBE and UMVUE 50
Answers to Exercise – 11.2 61
Solutions to Exercise – 11.2 61
Exercise – 11.3 Problems based on Methods of Estimation
(MLE, MOM, and Method of Least Squares) 87
Answers to Exercise – 11.3 99
Solutions to Exercise – 11.3 99
12. Theory of Estimation–2 (Interval Estimation) 12.1-12.30
12.1. Introduction 1
12.2. Confidence Interval and Confidence Coefficient 1
12.2.1. One Sided Confidence Interval 1
12.3. General Method of Constructing Confidence Interval 2
12.3.1. Interpretation of Confidence Interval 3
12.3.2. Pivotal Quantity 3
12.3.3. Shortest Confidence Interval 3
12.4. Interval Estimation for Large Samples 4
12.4.1. Confidence Interval for Population Mean (Large Samples) 5
12.4.2. Confidence Interval for Population Proportion (Large Samples) 5
12.4.3. Confidence Interval for Populaton Variance σ2 (For Large Samples) 6
12.4.4. Determination of Sample Size for Required Precision (Large Samples) 6
12.5. Confidence Intervals for Exact (Small) Samples 7
12.5.1. Confidence Interval for Mean m of N(m, σ2) Distribution 7
12.5.2. Confidence Interval for σ2 for N (m, σ2) Distribution 7
12.6. Some More Results on Confidence Intervals 9
12.7. Use of Order Statistics in Constructing Confidence Intervals 10
Exercise – 12.1 11
Answers to Exercise – 12.1 16
Solutions to Exercise – 12.1 17
xiv Objective Statistics

13. Testing of Hypothesis 13.1-13.58

13.1. Introduction 1
13.2. Statistical Hypothesis —Simple and Composite 1
13.2.1. Test of a Statistical Hypothesis 2
13.2.2. Test of Significance 2
13.2.3. Null Hypothesis 2
13.2.4. Alternative Hypothesis 2
13.2.5. Test Statistic 3
13.2.6. Critical Region 3
13.2.7. Two Types of Errors 3
13.2.8. Power of the Test 3
13.2.9. Level of Significance and Size of the Test 4
13.2.10. One-Tailed and Two-Tailed Tests 4
13.2.11. Critical Value or Significant Value 4
13.2.12. P-Value or Probability Value of Test Statistc 5
13.3. Procedure for Testing of Hypothesis 5
13.4. Most Powerful (M.P.) Test 6
13.4.1. Uniformly Most Powerful (U.M.P.) Test 6
13.5. Neyman J and Pearson E.S. Lemma 6
13.5.2. Unbiased Test and Unbiased Critical Region 7
13.5.3. MPCR and Sufficient Statistics 7
13.5.4. Similar Region 7
13.5.4. Similar Region and Sufficient Statistic 8
13.5.5. Consistency of Tests 8
13.6. Monotone Likelihood Ratio (MLR) Property 8
13.6.1. Monotonocity of Power Function 9
13.7. Likelihood Ratio Test 9
13.7.1. Properties of LR Test 11
13.8. Sequential Probability Ratio Test (SPRT) 11
Exercise – 13.1 Problems based on Simple and Composite Hypotheses and
Two Types of Errors 13
Answers to Exercise – 13.1 20
Solutions to Exercise – 13.1 20
Exercise – 13.2 Problems based on Neyman-Pearson Lemma, M.P. and
U.M.P. Tests 32
Answers to Exercise – 13.2 36
Solutions to Exercise – 13.2 37
Exercise – 13.3 Problems Based on Likelihood Ratio Test (LRT)
and Sequential Probability Ratio Test (SPRT) 49
Answers to Exercise – 13.3 53
Solutions to Exercise – 13.3 53
Appendix: Numerical Tables A.1-A-16
Bibliography B.1-B.2
Index I.1-I.6
 S

Snapshot of the Book

Exercise
S. No. Chapter Name Pages
Questions
1. Descriptive Measures : 1.1-1.72 162

Measures of Central Tendency, Dispersion, Skewness and Kurtosis

2. Theory of Probability 2.1-2.122 234

3. Random Variables and Distribution Functions 3.1-3.54 82

4. Mathematical Expectation and Generating Functions 4.1-4.70 104

5. Discrete Probability Distributions 5.1-5.76 150

6. Theoretical Continuous Distributions 6.1-6.90 158

7. Chebyshev's Inequality, Strong and Weak Law of Large Numbers, 7.1-7.52 78

and Central Limit Theorems
8. Correlation and Regression 8.1-8.72 158

9. Chi-Square, t, F and Z Distributions, and Z Transformation 9.1-9.62 104

10. Bivariate Normal Distribution 10.1-10.20 26

11 . Theory of Estimation-1 (Point Estimation) 11.1-11.126 227

12. Theory of Estimation-2 (Interval Estimation) 12.1-12.30 35

13. Testing of Hypothesis 13.1-13.58 89

Total 944 1607

 About the Book
Most of the Institutions / Organisations in India are conducting examinations under “ Multiple Choice ” Tests for
admissions or jobs in their Institutions or Organisations . The book Objective Statistics is a comprehensive book in
statistics based on Multiple Choice Questions (MCQs) and is intended for the students preparing for the competitive
examinations conducted by Indian Statistical Service (I.S.S.) ; Staff Selection Commission (S.S.C. ); Junior Statistical
Officers ( JSO); IIT Joint Admission Test for Masters (JAM); CSIR (NET; JRF) for subject Mathematical Sciences and
many other Competitive Examinations. This book is a modest, though determined bid to meet the requirements of the
students of Mathematical Statistics at Undergraduate (Pass and Honours) and Postgraduate level and those
preparing for the competitive examinations mentioned above . The book contains 13 Chapters, 34 Exercise Sets and
1,607 Multiple Choice Questions . A special feature of the book is that at the end of each Exercise Set the ‘ Answer
Sheet' as well as the ‘Solutions' to each question in the Exercise Set have been given .

About the Authors

S.C. Gupta, (born 1937) has a brilliant academic record with Honours in Mathematics
(1957), from Punjab University, Post-Graduation in Mathematical Statistics (1959) and
Mathematics (1966), both from University of Delhi, and M.S. in Statistics ( 1971-72) from the
University of North Carolina, Chapel Hill (U.S.A.) . Mr. Gupta started his teaching career
since July 1960 as a lecturer in the Department of Statistics , Meerut College, Meerut and
then as Associate Lecturer in Statistics at I.I.T. Kharagpur. He was an eminent and
dedicated faculty member of Hindu College , University of Delhi, since September 1963 and
retired as Associate Professor of Statistics in November 2002. Mr. Gupta was a Visiting
Scientist at Clark Atlanta University, Atlanta GA, (U.S.A.) in 2002. During his teaching career
spanning over four decades , Mr. Gupta has taught numerous Statistics courses like
Statistical Methodology, Theory of Probability, Probability Distributions, Applied Statistics,
Sample Surveys and Sampling Techniques, Design of Experiments, Theory of Estimation and Testing of Hypothesis,
etc. at the Under-graduate (Honours) level . He has also been associated with post-graduate teaching at the
Department of Statistics , University of Delhi, for over 15 years . Awell-established author of international repute, he has
written books on Mathematical Statistics, Fundamentals of Statistics, Applied Statistics, Business Statistics,
Engineering Mathematics and Matrices & Wonderland of Numbers which have been prescribed as text-
books/ reference books in most of the universities. Reading, writing and teaching are still his main passion .

Sanjeev Kumar Gupta did CFA in 2018, M.Sc. in Statistics (2001 ) and M.Phil . in Statistics
(2003) , both from University of Delhi, Delhi. He also cleared NET (National Eligibility Test) in
2003. He worked as Guest-lecturer in Statistics at Hindu College, University of Delhi from
August 2002 to March 2003. Mr. Gupta joined Reserve Bank of India in 2004 as Research
Officer and is currently working as Director in Department of Statistics and Information
Management (DSIM), Central Office, Mumbai.

Ananya Gupta is a distinguished Mathematician with a degree in B.Sc. Mathematics from

Exeter University, UK. Certified in Data Science & Machine Learning from Harvard University,
USA, she possesses a unique blend of mathematical expertise and cutting-edge data
analysis skills. Ananya's commitment to leveraging her strong foundation in mathematics to
drive innovative solutions in the fields of Mathematics & Statistics is evident in her dedication
and passion for advancing the boundaries of knowledge in these domains.

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