Tag: business economics and quantitative methods

Quizzes (24) Questions (932)

Questions Related to business economics and quantitative methods

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

The mean of $25$ observations is $73.408$. If one observation $64$ is removed, the revised mean is ______.

  1. $72.8$
  2. $73.8$
  3. $80.8$
  4. $76.8$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Original sum = 25 * 73.408 = 1835.2. New sum = 1835.2 - 64 = 1771.2. New mean = 1771.2 / 24 = 73.8.

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

The correct relation between variance and standard deviation (S.D) of a variable X is _______.

  1. S.D = Var
  2. $S.D =[ Var(X)^{\frac{1}{2}}]$
  3. $S.D = [Var(x)]^2$

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Standard deviation is the square root of the arithmetic mean of the squares of the deviations measured from the arithmetic mean of the data.

Variance is the mean of the squares of the deviations from the mean. 
Standard deviation is the square root of variance or variance is the square of standard deviation. 
S.D = {Var(X)}1/2 

or 
Var(X) = (S.D)2 

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

For comparison of two different series, the best measure of dispersion is _________.

  1. standard deviation

  2. range

  3. mean deviation

  4. coefficient of variation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Coefficient of variation is the coefficient of dispersion based on the standard deviation of the statistical series. The coefficient of standard deviation is calculated by dividing the standard deviation of the series by its mean and then multiplying it by 100. It is regarded as the best measure of dispersion to compare two different series because it is expressed in percentage. 

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

Given mean = $70.2$ and mode = $70.5$, find median using empirical relationship among them.

  1. $70.3$
  2. $70.5$
  3. $70.6$
  4. $70.4$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The empirical relationship is Mode = 3*Median - 2*Mean. 70.5 = 3*Median - 2*(70.2). 70.5 = 3*Median - 140.4. 3*Median = 210.9. Median = 70.3.

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

Which measure of dispersion ensures highest degree of reliability?

  1. Range

  2. Mean deviation

  3. Standard deviation

  4. Quartile deviation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Standard deviation is the square root of the arithmetic mean of the squares of the deviations measured from the arithmetic mean of the data. It is considered as the best and most commonly used measure of dispersion to ensure high degree of reliability as it is a measure of average of deviations from the average.

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

If each observation of set is divided by $10$, the S.D of the new observations is ______.

  1. $10$ times of S.D of original obs.
  2. $\frac{1}{100}$th

  3. Not changed
  4. $\frac{1}{10}$th
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Standard deviation is the square root of the arithmetic mean of the squares of the deviations measured from the arithmetic mean of the data. So the deviations are affected by division and multiplication. Therefore, if each observation of the set id divided by 10 then the whole standard deviation also becomes 1/10 th of the prior standard deviation. 

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

Which measure of dispersion has a different unit other than the unit of measurement of values?

  1. Range

  2. Mean deviation

  3. Standard deviation

  4. Variance
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Variance is the mean of the squares of the deviations from the mean. Variance is the square of standard deviation. Therefore any unit of a given set is converted into squares at the time of calculating the variance.
Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

A set of values is said to be relatively uniform if it has ________.

  1. high dispersion

  2. zero dispersion

  3. little dispersion

  4. negative dispersion
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A set of values from an observation is said to be relatively uniform if all the observations of the series have very little dispersion from each other. 

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

If each value of a set is divided by a constant 'd', the co-efficient of variation will be ________.

  1. more than original value

  2. less than original value

  3. same as original value

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Variance is the mean of the squares of the deviations from the mean. Variance is not affected by the addition, subtraction, multiplication and division of the given value. Therefore, if each value of the series is multiplied by 15, the coefficient of variation will be unaltered.

Multiple choice business economics and quantitative methods measures of dispersion and skewness shortcut method to find variance and standard deviation variance and standard deviation measures of dispersion

The C.V of a distribution is $80\%$ and the mean of the distribution is $40$, the S.D of the distribution is ________.

  1. $33$
  2. $32$
  3. $35$
  4. $0.30$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Coefficient of variation is the coefficient of dispersion based on the standard deviation of the statistical series.

Coefficient of variation = ( standard deviation / mean )

=> 80 /100 = S.D / 40 

=> S.D = 32