The previous Assistant Statistical Officer examination’s subject paper, all 150 questions in the paper’s own words. Under each, Show answer gives the right option, the working that gets there, and the page on this site that teaches the topic. The paper was set against the same ten-item syllabus as the current notification — see the syllabus map. Also solved: the paper of 4 November 2022.
Source. The Commission’s question paper preview “Paper II Subject”, created 2025-04-29 (the PDF), which marks the correct option of every question with a tick. It states: 150 questions, duration 150 minutes, total marks 150, negative marks 0.33 per wrong answer. The English version of each question is reproduced; the paper also prints it in Telugu.
How to read it. The answer shown is the right option among those printed, with the working that gets there. Where a question or an option is loosely printed, the working says how it is read. Q134 has no correct option, so it has no answer and counts for no one.
By item of the Paper-II syllabus. Each question is placed in the item it tests; the reasoning-style questions sit with the subject they reason about.
A statement has been given below followed by two conclusions. Assuming given statement to be true which of the following options will be correct for given conclusions.
Statement: The Reserve Bank of India (RBI) increases the Cash Reserve Ratio (CRR) to reduce excess liquidity in the economy.
Conclusions:
I. An increase in CRR leads to a decrease in the lending capacity of banks.
II. An increase in CRR results in higher money supply in the economy.
Answer: (1) Only Conclusion 1 follows
A higher CRR locks more of every deposit away with the RBI, so banks have less to lend (I follows). Less lending means less credit creation and so a smaller money supply, the opposite of II.
Study this: Money, Banking and Credit Creation — Economics (Unit 3)
Which occupational category includes laborers who directly depend on natural resources for their work?
Answer: (3) Primary occupational structure
The primary sector draws directly on natural resources — agriculture, fishing, forestry, mining. Secondary is manufacturing, tertiary is services, quaternary is knowledge work.
Not taught on this site yet — see where this site is thinnest.
Match the List – I with List – II and select the correct answer from the options given below:
| List-I | List-II |
|---|---|
| A. cash reserve ratio | i. Buying and selling of government securities |
| B. Expansionary monetary policy | ii. Mandatory Percentage of reserves to be maintained by commercial banks |
| C. Open market operations | iii.Increasing money supply in the economy |
| D. Central bank of a country | iv. manages the monetary policy of a country |
Answer: (2) A-ii, B-iii, C-i, D-iv
CRR is the share of deposits banks must keep with the central bank (A-ii); expansionary policy raises the money supply (B-iii); open market operations are the buying and selling of government securities (C-i); and the central bank manages monetary policy (D-iv).
Study this: Money, Banking and Credit Creation — Economics (Unit 3)
Which of the following is most likely not the benefit accrued due to Foreign trade ?
Answer: (4) Increase in the government expenditure on infrastructure
Specialisation, the spread of technology and a wider market are the gains from trade itself. Government spending on infrastructure is a budget decision, not something trade delivers.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which one of the following is not a consequence of rural urban disparities prevailing in an economy?
Answer: (4) More people will be moving to rural areas in order to work on agricultural sector
Disparity pulls people from villages to towns — hence crowded cities, strained urban services and migration. A move back to rural farm work is the reverse of what it causes.
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): Free trade zones promote trade without any restriction between countries agreed to it.
Reason (R): The countries agree to free trade because both exporting and importing mutually gain from trade. In the context of the above two statements, which one of the following is correct?
Answer: (1) Both (A) and (R) are true and (R) is the correct explanation of (A)
A free trade area removes restrictions among its members (A), and countries join because both exporters and importers gain (R) — which is exactly why such zones exist.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Consider the following statements:
Statement A: The Poverty line is determined by the minimum income at which food and non food basic necessities can be met.
Statement B: The headcount index measures the percentage of population living above the poverty line Which of the statements given above is/are correct?
Answer: (1) Only Statement A is correct
A is the definition of a poverty line. The headcount index is the share of people below the line, not above it, so B is false.
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Which of the given statements is/are correct?
Statement A: Market demand and supply determine the equilibrium in the perfect competitive industry, and all firms act as a price taker.
Statement B: A firm decides what price to be charged in the perfect competitive market.
Answer: (1) Only statement A is true
Under perfect competition the market's demand and supply fix the price and every firm takes it as given (A). No single firm decides the price, so B is false.
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
In which of the following situations does Aid work better than Trade?
Answer: (2) For relief in case of emergency
Trade builds specialisation, productivity and market access over time; in an emergency what is needed is immediate relief, which aid provides and trade cannot.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Capital does NOT boost economic growth in which of the following ways?
Answer: (4) It is required for changing taste and preferences of the consumer
Capital raises labour productivity and builds transport, communication, industry and farming. Consumer tastes and preferences are not something capital is needed to change.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which of the following is NOT a key feature of a good International Monetary system?
Answer: (4) Equilibrium distribution of income within each nation of the world
An international monetary system is judged on what happens between nations: the flow of trade and investment and a fair division of the gains. How income is shared inside each country is a domestic matter, outside its reach.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
If budget account of government is in the surplus, what does it mean?
Answer: (1) Government tax revenue collection is more than government spending and government transfer payments
A budget surplus means revenue exceeds outlays: tax collections are more than government spending plus transfer payments. The other options describe a deficit and its financing.
Study this: Public Finance, Budgets and Deficits — Economics (Unit 4)
In income method of national income accounting, which of the following is NOT included while calculating the national income of India?
Answer: (4) Salaries paid to Australian citizen working in Indian embassy in Australia
National income counts the factor incomes of India's normal residents. An Australian citizen employed locally at the Indian embassy in Australia is a resident of Australia, so the salary is a factor payment to the rest of the world and is left out.
Study this: National Income and the National Accounts — Economics (Unit 2)
Which of the following conditions must be prevailing in the market if market is NOT operating at equilibrium price determined?
Answer: (3) Shortage in the market
Away from the equilibrium price, demand and supply differ: below it there is a shortage, above it a surplus. Every other option describes equilibrium itself.
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
Demand of good or service is said to be elastic if its elasticity satisfies which of the following conditions?
Answer: (3) Ed>1
Demand is elastic when $|E_d| > 1$ — quantity responds more than proportionately to price. $E_d = 1$ is unit elastic, $E_d < 1$ inelastic, $E_d = 0$ perfectly inelastic.
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
Match the following economic concepts with their correct descriptions:
(i) Economic Terms:
1. Balance of Payments (BoP)
2. Balance of Trade (BOT)
3. Autonomous Transactions
(ii) Descriptions:
A. Difference between the value of exports and value of imports of goods.
B. Summaries the economic transactions of an economy with the rest of the World
C. Occur due to economic reasons independent of the state of the Balance of Payments
Answer: (3) 1 → B, 2 → A, 3 → C
The balance of payments summarises all transactions with the rest of the world (1-B); the balance of trade is exports minus imports of goods (2-A); autonomous transactions are made for their own economic reasons, whatever the state of the BoP (3-C).
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Population density is generally expressed as:
Answer: (1) Number of people per square kilometer
Population density is people per unit of area, conventionally persons per square kilometre.
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Match the List – I with List – II and select the correct answer from the options given below
| List-I | List-II |
|---|---|
| A.Disguised unemployment | i.Primary sector. |
| B. In India, largest percentage of labour force is employed in | ii. More people working in agriculture than required |
| C. Informal sector | iii.movement of labor from one place to another for work |
| D. migration | iv.no job security and unregulated work |
Answer: (4) A-ii, B-i, C-iv, D-iii
Disguised unemployment is more people on the land than the work needs (A-ii); India's largest share of workers is in the primary sector (B-i); the informal sector means no job security and unregulated work (C-iv); migration is labour moving for work (D-iii).
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Match the List – I with List – II and select the correct answer from the options given below:
| List-I | List-II |
|---|---|
| A. Retained earnings | i. Investment in skill development and education |
| B. Human capital creation | ii. Profits reinvested by the company instead of distributing as dividend |
| C. Equity financing | iii. Investment in infrastructure and building |
| D. Physical capital | iv. Raising funds by selling shares |
Answer: (4) A-ii, B-i, C-iv, D-iii
Retained earnings are profits kept instead of paid as dividend (A-ii); human capital is built by education and skills (B-i); equity financing raises money by selling shares (C-iv); physical capital is infrastructure and buildings (D-iii).
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which one of the following is the agricultural policy implemented for the benefit of farmers/ producers?
Answer: (1) Minimum support price
The minimum support price guarantees farmers a floor price for their crop. The PDS serves consumers; globalisation and SEZs are not agricultural policies.
Not taught on this site yet — see where this site is thinnest.
Out of the following course of actions, which one comes under the fiscal policy?
Answer: (3) Income tax rates have been decreased
Fiscal policy is the government's taxing and spending. CRR, buying securities and the discount rate are all tools of the central bank — monetary policy.
Study this: Public Finance, Budgets and Deficits — Economics (Unit 4)
Which one of the following is the problem associated with economic planning in India which leads to economic reforms in early 1990’s?
Answer: (4) High inflation and fiscal deficit
The 1991 reforms followed a crisis of high inflation, a large fiscal deficit and a balance-of-payments deficit (not surplus), with weak public-sector performance.
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Which one of the following is not the reason for increased regional imbalances?
Answer: (4) Uniform education system across regions
Urban-only industry, poor farm land and natural endowments all widen regional gaps. A uniform education system across regions would narrow them, not widen them.
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Which of the following is one of the negative impact of External debt?
Answer: (4) Dependency on foreign countries or institutions can lead to comprising political freedom
Options 1–3 are uses of external borrowing. Its cost is dependence on foreign lenders, which can compromise a country's freedom of policy.
Study this: Public Finance, Budgets and Deficits — Economics (Unit 4)
Consider the following statements:
Statement A: The increasing size of market enables the division of labor which in return lead to increase in the productivity.
Statement B: Productivity of labor increases if more output can be produced using the same units of labor Which of the statements given above is/are correct?
Answer: (3) Both Statements A and B are correct
Adam Smith's point: a larger market allows finer division of labour, which raises productivity (A). Producing more with the same labour is what higher productivity means (B).
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
With reference to inflation, which of the following statements is/are correct?
Statement A: Contractionary monetary policy is used by the central bank in order to keep a check on inflation.
Statement B: Inflation can be measured by comparing the price of a single good with its price in the previous period.
Answer: (1) Only Statement A is correct
Central banks tighten — contractionary policy — to curb inflation (A). Inflation is a rise in the general price level, measured with an index over many goods; one good's price change is not inflation (B is false).
Study this: Public Finance, Budgets and Deficits — Economics (Unit 4)
Match the List – I with List – II and select the correct answer from the options given below.
| List-I | List-II |
|---|---|
| A. MPC | i. one |
| B. APS+APC= | ii. change in consumption due to change in income |
| C. Gross investment | iii. National income- direct taxes |
| D. National Disposable income | iv. Net investment+ Depreciation |
Answer: (4) A-ii, B-i, C-iv, D-iii
MPC is the change in consumption per change in income (A-ii); $APC + APS = 1$ (B-i); gross investment is net investment plus depreciation (C-iv); which leaves D-iii.
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Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): The demand of a tea is directly related to price of coffee.
Reason (R):The cross price elasticity of demand between two substitute goods is always positive. In the context of the above two statements, which of the following is correct?
Answer: (1) Both (A) and (R) are true and (R) is the correct explanation of (A)
Tea and coffee are substitutes: when coffee's price rises, tea's demand rises (A). For substitutes the cross-price elasticity is positive (R), which is the reason A holds.
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
If human capital is created, then what does it mean?
Answer: (1) That with same human capital more quantity of product can be produced
Human capital is the skill and knowledge in the workforce; building it means the same workers can produce more.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which of the following is the objective of International Development Association, one of the associations of World Bank?
Answer: (1) To assist poorer countries of the world in removal of poverty
The IDA is the World Bank's arm for the poorest countries, lending on concessional terms to reduce poverty. Balance-of-payments support is the IMF's role.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which of the following is recorded on the credit side of the balance of payment?
Answer: (2) Financial inflows
Anything that brings foreign exchange in is a credit: exports, and financial inflows. Imports, outflows and transfers paid abroad are debits.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which of the following is NOT an argument for moving to protectionism from free trade?
Answer: (4) To control the inflation
Protecting infant industries, domestic labour and the balance of payments are classic arguments for protection. Tariffs raise domestic prices, so controlling inflation is not one.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Which of the following statements is NOT true for Inflation rate?
Answer: (4) Inflation = nominal interest rate/real interest rate
By the Fisher relation, inflation is approximately the nominal rate minus the real rate (option 1 is true); option 2 is the definition. Dividing the nominal rate by the real rate (option 4) has no meaning.
Study this: Public Finance, Budgets and Deficits — Economics (Unit 4)
According to quantity theory of money (MV = PY), if money supply increases, keeping velocity constant, then it implies which of the following?
Answer: (1) Nominal output or GDP will increase
In $MV = PY$, with $V$ constant a rise in $M$ must raise $PY$ — nominal GDP.
Study this: Money, Banking and Credit Creation — Economics (Unit 3)
The natural rate of unemployment is equal to:
Answer: (2) Frictional unemployment + structural unemployment
The natural rate is the unemployment that remains when the economy is at full employment: frictional plus structural. Cyclical unemployment is what it excludes.
Not taught on this site yet — see where this site is thinnest.
A statement has been given below followed by two conclusions. Assuming given statement to be true, which of the following options will be correct for given conclusions.
Statement: The service sector in India has expanded rapidly, contributing significantly to national income, employment, and foreign investments.
Conclusions:
I. The service sector is a major driver of economic growth in India.
II. Manufacturing and agriculture have become irrelevant to economic growth.
Answer: (1) Only Conclusion 1 follows
Rapid growth of services supports I. Nothing in the statement says manufacturing and agriculture no longer matter, so II does not follow.
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): In a perfectly competitive market, equilibrium is reached when market supply equals market demand at a specific price and quantity.
Reason (R): The equilibrium price is determined by the interaction of supply and demand forces. In the context of above two statements, which one of the following is correct?
Answer: (1) Both A and R are true, and R is the correct explanation of A.
Equilibrium is where market supply meets market demand (A), and it is the interaction of those two forces that sets the price (R), which explains A.
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
In a perfectly competitive market, firms are considered:
Answer: (2) Price takers, as they accept the market-determined price
A competitive firm is too small to affect the price; it sells at the price the market sets — a price taker.
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
Which of the following is not the negative impact of parallel economy?
Answer: (4) Some employment opportunities are created in the informal sector
Lost tax revenue, corruption and inflationary unrecorded money are the harms of a parallel economy. Informal jobs are, if anything, a side benefit, not a harm.
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The Public Distribution System is the program implemented to take care of poor people in India. Which one of the following is the key objective of PDS?
Answer: (2) To provide food to the poor
The Public Distribution System supplies food grains to poor households at subsidised prices; food security is its purpose.
Not taught on this site yet — see where this site is thinnest.
With reference to inequality, consider the following statements:
• Initially, when a country starts growing, inequality can increase given the fact that more focus will be on industrial growth to achieve economic growth; therefore, less labor will be employed and more capital will be employed
• The Lorenz curve helps in evaluating the distribution of income in an economy and therefore tries to measure inequality prevailing in the market.
• The only type of inequality which is prevalent in India is regional inequality How many of the above statements are correct?
Answer: (2) Only two
Inequality often rises in early industrial growth (Kuznets), and the Lorenz curve measures income distribution — both true. India has many kinds of inequality, not only regional, so the third is false: two statements.
Study this: The Indian Economy: Poverty, Unemployment, Inequality and Planning — Economics (Unit 6)
Match the List – I with List – II and select the correct answer from the options given below:
| List-I | List-II |
|---|---|
| A. Nominal Rate of interest is | i. Entrepreneur |
| B. Inflation adjusted rate of interest | ii. Profit is one of the component |
| C. Profit is the factor of payment to | iii. Promised rate of interest written on bond papers |
| D. In income method of GDP calculation | iv. Real rate of interest |
Answer: (3) A-iii, B-iv, C-i, D-ii
The nominal rate is the promised rate on the bond (A-iii); the inflation-adjusted rate is the real rate (B-iv); profit is the reward of the entrepreneur (C-i); and profit is one component of income-method GDP (D-ii).
Study this: Price Determination, Market Structures and Factor Incomes — Economics (Unit 1)
Which of the following is NOT a component of the physical quality of life index which is an indicator of economic development?
Answer: (4) per capita real domestic product
The PQLI combines life expectancy, infant mortality and literacy. It deliberately leaves out income, which is exactly what it was built to look past.
Not taught on this site yet — see where this site is thinnest.
Under labour theory of value, the value of a good is determined by:
Answer: (1) Amount of labour going into production of 1 unit of a good, ignoring the role of capital
The labour theory of value (Ricardo, Marx) holds that a good's value is the labour embodied in it, setting capital aside.
Not taught on this site yet — see where this site is thinnest.
While the immediate cause of the collapse of Bretton woods system is BOP deficits of the United States, the fundamental cause lies in the interrelated problems between which of the following features?
Answer: (1) Liquidity, adjustment and confidence
Triffin's diagnosis of Bretton Woods: the linked problems of liquidity, adjustment and confidence.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
Under the flexible exchange rate system, in case of deficit, for balance of payment adjustment, which of the following is the appropriate policy?
Answer: (1) Depreciation
Under a flexible rate a deficit is corrected by the market fall of the currency — depreciation. Devaluation is the deliberate cut made under a fixed rate.
Study this: International Economics: Trade, Balance of Payments and the Institutions — Economics (Unit 5)
If person A has taken a loan of $10,000 from bank XYZ and will be paying back in instalments in 25 years, then here which function of money is being performed?
Answer: (4) Standard of deferred payments
Repaying a loan over 25 years uses money as the standard of deferred payments — a unit for debts settled in the future.
Study this: Money, Banking and Credit Creation — Economics (Unit 3)
Which of the following is NOT part of consumption in national income accounting?
Answer: (1) Consumption of fixed capital
Consumption of fixed capital is depreciation, the wearing out of capital goods. It is deducted to go from gross to net; it is not household consumption.
Study this: National Income and the National Accounts — Economics (Unit 2)
If an engineer is earning $5,000 and has to pay income tax of 10%, after which decides to save $400, how much he must be spending on purchase of goods and services?
Answer: (2) $4,100
Income after tax $= 5{,}000 - 10\% \times 5{,}000 = 4{,}500$. Spending $= 4{,}500 - 400 = 4{,}100$.
Not taught on this site yet — see where this site is thinnest.
Match the requirement or condition with its related legal/accounting basis under the Companies Act, 2013.
| Column A | Column B |
|---|---|
| A. Use of accrual and double-entry system | 1. Mandatory compliance with notified Accounting Standards |
| B. Filing of financial statements at AGM | 2. Section 129 requirement for Board of Directors |
| C. Compliance with format in Schedule III | 3. Applicable to companies not governed by special acts |
| D. Accounting standards application | 4. Basis of maintaining company books of account |
Answer: (1) A-4, B-2, C-3, D-1
Section 128 requires books on the accrual basis and double entry (A-4); Section 129 requires the Board to lay financial statements before the AGM (B-2); Schedule III's format applies to companies not governed by special acts (C-3); notified accounting standards are mandatory (D-1).
Not taught on this site yet — see where this site is thinnest.
Which of the following reflects the primary operational benefit of using subsidiary books in a large organisation?
Answer: (3) Enables division of work and faster, specialised transaction recording
Splitting the journal into subsidiary books lets different clerks record different kinds of transaction at once, faster and more specialised.
Study this: Subsidiary Books and the Cash Book — Financial Accounting (Unit 3)
What is the primary book of original entry where all transactions are recorded first?
Answer: (3) Journal
The journal is the book of original entry; the ledger is posted from it.
Study this: Journal and Ledger: the Accounting Process Worked End to End — Financial Accounting (Unit 2)
What does the Business Entity Concept primarily emphasize?
Answer: (3) Treating business and owner as separate entities
The business entity concept keeps the business and its owner apart in the accounts; the owner's capital is a liability of the business.
Study this: What Accounting Is: Concepts, Conventions and the Rules of Debit and Credit — Financial Accounting (Unit 1)
Which of the following is the correct accounting equation?
Answer: (3) Assets = Liabilities + Owner’s Equity
What the business owns is financed by what it owes to outsiders and to its owner: Assets = Liabilities + Owner's Equity.
Study this: What Accounting Is: Concepts, Conventions and the Rules of Debit and Credit — Financial Accounting (Unit 1)
Which of the following best explains the dual record system of the bank and customer for the same transaction?
Answer: (3) The Cash Book’s debit side corresponds to the Pass Book’s credit side
A deposit is a debit in the customer's cash book but a credit in the bank's pass book, because to the bank it is money owed to the customer.
Study this: Bank Reconciliation Statement — Financial Accounting (Unit 4)
Which accounting concept is considered to meet the three essential criteria of relevance, objectivity, and feasibility?
Answer: (2) Cost Concept
The cost concept records assets at what was paid for them: relevant, objective (evidenced by documents) and feasible to apply.
Study this: What Accounting Is: Concepts, Conventions and the Rules of Debit and Credit — Financial Accounting (Unit 1)
What do liabilities represent in accounting?
Answer: (2) The obligations payable by the business to others
Liabilities are what the business owes to others.
Study this: What Accounting Is: Concepts, Conventions and the Rules of Debit and Credit — Financial Accounting (Unit 1)
Match the term with its correct explanation.
| Column A | Column B |
|---|---|
| A. Journal | 1. Grouping similar transactions |
| B. Ledger | 2. First book of original entry |
| C. Narration | 3. Brief explanation of a transaction |
| D. Classification | 4. Used for preparing trial balance |
Answer: (1) A-2, B-4, C-3, D-1
Journal: first book of original entry (A-2); ledger: the source of the trial balance (B-4); narration: the brief explanation (C-3); classification: grouping like transactions (D-1).
Study this: Journal and Ledger: the Accounting Process Worked End to End — Financial Accounting (Unit 2)
In the context of the Companies Act, 2013, what is the key requirement regarding the location of books of accounts?
Answer: (3) At the company’s registered office
Section 128 of the Companies Act, 2013 requires books of account to be kept at the registered office (or another place in India the Board decides and notifies).
Not taught on this site yet — see where this site is thinnest.
In the Cash Book, how are cash transactions recorded to reflect the nature of financial movement?
Answer: (3) Cash receipts are recorded on the debit side, and cash payments on the credit side.
The cash book follows the rule for a cash account: receipts on the debit side, payments on the credit side.
Study this: Subsidiary Books and the Cash Book — Financial Accounting (Unit 3)
Which of the following statements regarding events and transactions is true?
Answer: (2) All transactions are events, but not all events are transactions.
A transaction is an event that can be measured in money and changes the business's position. Every transaction is an event; many events are not transactions.
Study this: What Accounting Is: Concepts, Conventions and the Rules of Debit and Credit — Financial Accounting (Unit 1)
Which accounting concept refers to the practice of recording transactions using a standard unit of currency, such as the US dollar?
Answer: (2) Monetary Measurement Concept
Money measurement: only what can be expressed in a unit of currency is recorded.
Study this: What Accounting Is: Concepts, Conventions and the Rules of Debit and Credit — Financial Accounting (Unit 1)
For the set of observations 7.4, 12.2, 8.6, 7.7, 9.3, 5.8, 11.6, 8.8, 9.0, the range is equal to:
Answer: (2) 6.4
Range = largest − smallest $= 12.2 - 5.8 = 6.4$.
Study this: Descriptive Statistics Unit 4 — Measures of Dispersion
Given below are two statements labelled as Assertion (A) and Reasoning (R).
Assertion (A): Ratio to Moving Average Method is the best and widely used method for estimating the seasonal fluctuations in a time series
Reasoning (R): Ratio to Moving Average Method irons out both trend and cyclical components from the indices of seasonal variations. In the light of above, choose the correct option.
Answer: (1) Both A and B are true and R is correct explanation of A.
Ratio to moving average is the most widely used method (A), and it is because it removes trend and cycle from the seasonal indices (R) that it is preferred.
Study this: Applied Statistics Unit 2 — Seasonal Component
A major limitation in construction of index numbers is which of the following?
Answer: (1) Index numbers are liable to be manipulated by selfish persons to obtain desired results.
The other options are either false (formulas have no error) or advantages. Index numbers can be manipulated by choice of base, items and weights — a real limitation.
Study this: Applied Statistics Unit 3 — Index Numbers
If Laspeyer’s quantity and Paasche’s quantity index numbers are given as 120.69 and 120.62, then Fisher’s quantity index number is equal to:
Answer: (2) 120.65
Fisher's index is the geometric mean of Laspeyres and Paasche: $\sqrt{120.69 \times 120.62} = 120.65$.
Study this: Applied Statistics Unit 3 — Index Numbers
Which of the following is not the limitation of Index numbers?
Answer: (3) These can not be used for wage policy of the government
Consumer price indices are used for wage policy — dearness allowance is fixed by them. The other three are genuine limitations.
Study this: Applied Statistics Unit 3 — Index Numbers
Match the following:
| Column I | Column II |
|---|---|
| 1. Normal Distribution is | I. Mode |
| 2. Mean of Normal Distribution is same as | II. unimodal |
| 3. Quartile deviation for normal distribution | III. symmetric |
| 4. Normal distribution | IV. two third of standard deviation |
Choose the correct option.
Answer: (4) I- III; 2-I ; 3- IV; 4-II
The normal distribution is symmetric (1-III); its mean equals its mode (2-I); its quartile deviation is $0.6745\sigma$, about two-thirds of the standard deviation (3-IV); and it is unimodal (4-II). That is option 4, whose first pair is printed “I- III” for “1-III”.
Study this: Continuous Distributions Unit 4 — Normal Distribution
Match the following:
| Column I | Column II |
|---|---|
| 1. Standard Deviation | I. Variability in a data set |
| 2. Coefficient of Variation | II. obtained by subtracting lowest observation from highest observation |
| 3. Dispersion | III. an absolute measure of dispersion |
| 4. Range | IV. checks consistency in performance of cricket players |
Choose the correct option.
Answer: (4) I- III; 2-IV; 3- I; 4-II
Standard deviation is an absolute measure of dispersion (1-III); the coefficient of variation compares consistency, such as two batsmen’s scores (2-IV); dispersion is variability (3-I); and range is the highest observation minus the lowest (4-II). That is option 4, whose first pair is printed “I- III” for “1-III”.
Study this: Descriptive Statistics Unit 4 — Measures of Dispersion
Given below are two statements labelled as Assertion (A) and Reasoning (R).
Assertion (A): Mean is highly affected by extreme observations.
Reasoning (R): Mean does not utilize all the observations. In the light of the above, choose the correct option.
Answer: (3) A is true but R is not true.
The mean is pulled by extreme values (A is true) precisely because it uses every observation, so R, which says it does not, is false.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
On the basis of the following statements,
1. Frequency distribution is a tabular arrangement of data in form of classes
2. Open class interval does not have upper or lower limit
3. For summarizing large mass of raw data, it is useful to distribute data into classes Which of the following holds?
Answer: (4) All three are true
All three are standard: a frequency distribution tabulates data by class; an open class lacks a lower or an upper limit; grouping summarises a large mass of data.
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
On the basis of the following statements,
1. Primary data can be collected either through experiment or through survey;
2. Before using questionnaires for primary data, a pilot study is carried out for purpose of testing;
3. For collection of primary data through questionnaires, enumerators are appointed and given training, Which of the following holds?
Answer: (4) All three are true
Primary data come from surveys or experiments; a questionnaire is pilot-tested first; and when schedules or questionnaires are administered, enumerators are appointed and trained.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
Consider the following information in two lists A and B:
| LIST A | LIST B |
|---|---|
| (i) Correlation between Income and expenditure of a family | (i) Positive correlation |
| (ii) Correlation between age and weight among newly born babies | (ii) Negative correlation |
| (iii) Correlation between age and weight among very old persons | (iii) High positive correlation |
Answer: (1) A(i)-B(i), A(ii)-B(iii), A(iii)-B(ii)
A family's expenditure rises with its income (positive); newborns' weight rises strongly with age (high positive); in very old age weight tends to fall with age (negative).
Study this: Statistical Methods Unit 2 — Correlation
If n =10, mean = 12 and standard deviation = 3, then coefficient of variation (in percentage) is equal to:
Answer: (1) 25
$CV = \dfrac{\sigma}{\bar x} \times 100 = \dfrac{3}{12} \times 100 = 25$.
Study this: Descriptive Statistics Unit 4 — Measures of Dispersion
The numbers of ATM transactions per day recorded at 10 locations in a city were 35, 49, 225, 50, 30, 65, 40, 55, 52 and 76. The median of the numbers of transactions is:
Answer: (2) 51
In order: 30, 35, 40, 49, 50, 52, 55, 65, 76, 225. With ten values the median is the mean of the 5th and 6th: $(50 + 52)/2 = 51$. The outlier 225 does not move it.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
If 5, 8, 6 and 2 occur with frequencies 3, 2, 4 and 1, then arithmetic mean is equal to:
Answer: (1) 5.7
$\bar x = \dfrac{5 \cdot 3 + 8 \cdot 2 + 6 \cdot 4 + 2 \cdot 1}{3 + 2 + 4 + 1} = \dfrac{57}{10} = 5.7$.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
The most appropriate diagram for representing the distribution of National plan outlay of a country in different sectors of economy is:
Answer: (4) Pie Chart
Shares of one total across sectors are shown as the slices of a pie chart.
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
Which of the following is not a source of secondary data?
Answer: (3) Autobiography
Biographies, newspapers and magazines report what others collected. An autobiography is the writer's own first-hand account, so it is treated as primary.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
Data available in census reports is:
Answer: (1) Primary Data
The census office collects its data directly from every household: for it, census data are primary. (Anyone else using the published tables is using secondary data.)
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): Karl Pearson' correlation coefficient between two variables X and Y is - 1.
Reason (R): The two variables are perfectly positively correlated. In the context of the above two statements, which of the following is correct?
Answer: (3) Assertion (A) is correct but Reason (R) is wrong.
$r = -1$ is perfect negative correlation, so the assertion can hold but the reason (perfect positive) is wrong.
Study this: Statistical Methods Unit 2 — Correlation
Karl Pearson's coefficient of correlation cannot exceed ________.
Answer: (1) 1
$-1 \le r \le 1$, so $r$ cannot exceed 1.
Study this: Statistical Methods Unit 2 — Correlation
Correlation is used to find ______ of a linear relationship between two variables.
Answer: (3) strength and direction
$|r|$ gives the strength and the sign gives the direction of a linear relationship.
Study this: Statistical Methods Unit 2 — Correlation
Correlation between the age and weight of old persons above 70 years of age is expected to be:
Answer: (2) negative
Past 70, weight tends to fall as age rises: a negative correlation.
Study this: Statistical Methods Unit 2 — Correlation
Given below are two statements labelled as Assertion (A) and Reasoning (R).
Assertion (A): For the observations 2, 3, 5, 9 and 11, mean deviation about mean is 3.2 and the mean deviation about median is 3.
Reasoning (R): Mean deviation is the least when measured about the median. In the light of above, choose the correct option.
Answer: (1) Both A and B are true and R is correct explanation of A.
Mean $= 30/5 = 6$; deviations 4, 3, 1, 3, 5 give MD $= 16/5 = 3.2$. Median $= 5$; deviations 3, 2, 0, 4, 6 give MD $= 15/5 = 3$. So A is true. R is true as well, and it is why the second figure is the smaller: mean deviation is least when taken about the median. (The options write “A and B” for A and R.)
Study this: Descriptive Statistics Unit 4 — Measures of Dispersion
If a typist in an office can type invoices at a rate of 50 per hour, statements at a rate of 40 per hour and reminders at a rate of 80 per hour and she types equal number of each type of documents, then the average output of the typist (per hour) is approximately equal to?
Answer: (2) 52
Equal numbers of each document means equal output, so the right average of rates is the harmonic mean: $\dfrac{3}{\frac{1}{50} + \frac{1}{40} + \frac{1}{80}} = \dfrac{3}{0.0575} \approx 52$.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
Match the List – I with List – II and select the correct answer from the options given below:
| List-I | List-II |
|---|---|
| A-Bar Diagram | (i) A graphical representation of grouped frequency distribution with continuous classes. |
| B- Histogram | (ii) Diagram consists of a number of rectangles used for one dimensional comparison |
| C-Line Graph | (iii) A graphical representation technique that displays data in a circular- shaped graph |
| D-Pi-chart | (iv) A graph that utilizes points and lines to represent change over time |
Answer: (3) A-ii, B-i, C-iv, D-iii
Bar diagram: rectangles for one-dimensional comparison (A-ii); histogram: grouped data with continuous classes (B-i); line graph: points and lines over time (C-iv); pie chart: a circle (D-iii).
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
Given below are two statements labelled as Assertion (A) and Reasoning (R).
Assertion (A): Time reversal test was proposed by Irving Fisher.
Reasoning (R): Fisher’s index number satisfies Factor reversal test. In the light of above, choose the correct option.
Answer: (4) Both A and B are true and R is not correct explanation of A.
Irving Fisher proposed the time reversal test (and the factor reversal test), so A is true. His ideal index, $\sqrt{L \times P}$, satisfies the factor reversal test, so R is true. But R says what Fisher’s index satisfies, not who proposed the time reversal test, so it does not explain A. (The options write “A and B” for A and R.)
Study this: Applied Statistics Unit 3 — Index Numbers
For a particular year, weekly take home pay is 138.10 and consumer price index is 149.8. Then the real weekly wage is approximately equal to:
Answer: (1) 92.19
Real wage $= \dfrac{138.10}{149.8} \times 100 = 92.19$.
Study this: Applied Statistics II Unit 2 — Index Numbers (Advanced)
Which of the following does NOT hold for time series?
Answer: (4) For data segregated by time, the value of the variable does not change from time to time.
A time series exists because the value changes over time; a variable that did not change would have nothing to analyse.
Study this: Applied Statistics Unit 1 — Time Series
Given below are two statements labelled as Assertion (A) and Reasoning (R).
Assertion (A): Class mark is obtained by dividing the sum of lower and upper class limits, by two
Reasoning (R):. Class boundaries are used for making the class intervals continuous In light of the above statements, choose the correct option.
Answer: (2) Both A and R are true and R is not correct explanation of A.
The class mark is $(\text{lower} + \text{upper})/2$ (A), and class boundaries make classes continuous (R). Both are true, but R is not why the class mark is computed that way.
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
On the basis of the following statements:
1. Frequent field checks are taken up on the work of enumerators responsible for filling schedules
2. While using schedules, enumerators explain the aims and objects of the investigation and also remove the difficulties faced by any respondent
3. Questionnaires are filled by investigators for helping the respondents Which of the options is correct?
Answer: (2) 1 and 2 are true
Enumerators' work is field-checked, and they explain the enquiry to respondents — 1 and 2 are true. A questionnaire is filled by the respondent, not by an investigator, so 3 is false.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
Which of the following is NOT the utility of time series analysis?
Answer: (2) Time series analysis is not restricted to time-dependent data.
Planning, forecasting and understanding the past are the uses of time series analysis. It is by definition about time-dependent data, so option 2 is not a utility.
Study this: Applied Statistics Unit 1 — Time Series
Which of the following is NOT the advantage of using Schedule over questionnaire?
Answer: (3) It is very cost effective
Schedules suit illiterate informants, get few non-responses and give more reliable answers — but paying trained enumerators makes them costly, not cost-effective.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
Which of the following methods is NOT used in measuring the seasonal variations?
Answer: (1) Method of Least Squares
Ratio to trend, ratio to moving average and link relatives measure seasonal variation. Least squares fits the trend.
Study this: Applied Statistics Unit 2 — Seasonal Component
Using the method of Least Square in fitting the trend line of the best fit, the sum of the squares of the deviations of actual values from the computed values is always:
Answer: (3) least
That is what “least squares” means: the fitted line makes the sum of squared deviations as small as possible.
Study this: Applied Statistics Unit 1 — Time Series
Match the following:
| Column I | Column II |
|---|---|
| 1. Bowley’s measure of skewness | I. (Mean- Median)/standard deviation |
| 2. Karl Pearson measure of skewness | II. mean < median < mode |
| 3. Negative skewness | III. degree of peakedness of a frequency curve |
| 4. Kurtosis | IV. lies between -1 and 1 |
Choose the correct option.
Answer: (2) 1-IV; 2-I ; 3- II; 4-III
Bowley’s coefficient, built on the quartiles, lies between $-1$ and $1$ (1-IV). Karl Pearson’s coefficient is built on the gap between the mean and the median, $3(\text{Mean} - \text{Median})/\sigma$; the paper prints it without the 3, which does not change the match (2-I). Negative skewness has mean < median < mode (3-II), and kurtosis is the peakedness of the curve (4-III).
Study this: Descriptive Statistics Unit 5 — Moments, Skewness & Kurtosis
For the following set of observations 2,4,5,6,7,8,9, 9,9, 10,11
Match the following answers:
| Column 1 | Column 2 |
|---|---|
| 1. Mean | I. 5.76 |
| 2. Mode | II. 8 |
| 3. Median | III. 9 |
| 4. Harmonic Mean | IV. 7.27 |
Choose the correct option.
Answer: (2) 1-IV; 2-III; 3- II; 4-I
$n = 11$, sum $= 80$, so the mean is $7.27$ (1-IV). The mode is 9 (2-III). The 6th value in order is 8, the median (3-II). HM $= 11 / \sum \frac{1}{x} = 11/1.909 = 5.76$ (4-I).
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
Match the following:
| Column I | Column II |
|---|---|
| 1. Multiple bar diagrams | I. drawn by joining the mid-points of all tops of a histogram |
| 2. Pie Diagram | II. drawn to represent the time series data related to the temperature, rainfall, population growth, |
| 3. Line Diagram | III. drawn to depict the total value of the given attribute using a circle. |
| 4. Frequency polygon | IV. constructed to represent two or more than two variables for the purpose of comparison |
Choose the correct option.
Answer: (2) 1-IV; 2-III; 3- II; 4-I
Multiple bars compare two or more variables (1-IV); a pie shows a total as a circle (2-III); a line diagram shows time series such as temperature or rainfall (3-II); a frequency polygon joins the mid-points of a histogram's tops (4-I).
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
On the basis of the following statements,
1. Second quartile is same as mean;
2. Second quartile is same as median;
3. Median is same as first quartile, Which of the following holds?
Answer: (3) Only 2 is true
$Q_2$ is the median by definition. It equals the mean only for a symmetric distribution, and never equals $Q_1$ in general.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
For Normal distribution, the value of coefficient of skewness is:
Answer: (2) Zero
The normal curve is symmetric, so its coefficient of skewness is zero.
Study this: Continuous Distributions Unit 4 — Normal Distribution
A negative value of coefficient of skewness implies that:
Answer: (1) Mode is more than mean
Negative skewness puts the long tail on the left, which pulls the mean below the mode.
Study this: Descriptive Statistics Unit 5 — Moments, Skewness & Kurtosis
Suppose that for a frequency distribution, Mean = 164.73, First Quartile = 160.95, Second Quartile = 164.76 and Third Quartile= 168.45, then on the basis of Bowley’s coefficient of skewness, the distribution is:
Answer: (1) Negatively Skewed
Bowley's $S_k = \dfrac{Q_3 + Q_1 - 2Q_2}{Q_3 - Q_1} = \dfrac{168.45 + 160.95 - 329.52}{7.50} = \dfrac{-0.12}{7.50} = -0.016$: negative, if only just.
Study this: Descriptive Statistics Unit 5 — Moments, Skewness & Kurtosis
Which of the following is not true about central tendency?
Answer: (2) Indicates variability in a data set
A central value represents the data and is where they cluster; variability is what measures of dispersion describe, not central tendency.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
Which of the following is not true about census?
Answer: (3) The first census was conducted non-synchronously in 1862
India's first (non-synchronous) census was taken in 1872, not 1862; the first synchronous census was 1881.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
The heights of rectangles in a histogram with class intervals of equal sizes are proportional to:
Answer: (1) Class frequencies
With equal class widths every rectangle has the same base, so its height is proportional to its frequency.
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
Three identical dice are tossed. Probability that the same number will appear on each of them is:
Answer: (2) $\frac{1}{36}$
There are $6^3 = 216$ equally likely outcomes, of which 6 show the same number on all three dice: $6/216 = 1/36$.
Study this: Theory of Probability Unit 1 — Elementary Probability
Out of the sampling techniques mentioned below, which is probability sampling method?
Answer: (2) Cluster sampling
Cluster sampling selects whole clusters at random, so each unit has a known chance. Judgement and convenience sampling are non-probability methods.
Study this: Sampling Techniques Unit 1 — Sample Survey Concepts
Which of the following statements is/are correct?
Statement I: If two variables X and Y are independent then $r_{XY} = 0$
.
Statement II: If $r_{XY} = 0$, then two variables X and Y are independent.
Answer: (1) Only Statement I is correct
Independence gives zero covariance and so $r = 0$ (I). The converse fails: $r$ measures only linear association, and $Y = X^2$ with symmetric $X$ has $r = 0$ yet is fully dependent (II is false).
Study this: Statistical Methods Unit 2 — Correlation
The rank correlation coefficient between two characteristics of 4 students was worked out to be 0.5. Later on it was noticed that the difference in ranks in the two characteristics obtained by one of the students was wrongly taken as 1 instead of 2. The corrected rank correlation is:
Answer: (1) $\frac{1}{5}$
With $n = 4$: $0.5 = 1 - \dfrac{6\sum d^2}{4 \cdot 15}$ gives $\sum d^2 = 5$. Correcting one $d$ from 1 to 2 adds $4 - 1 = 3$, so $\sum d^2 = 8$ and $R = 1 - \dfrac{48}{60} = \dfrac{1}{5}$.
Study this: Statistical Methods Unit 2 — Correlation
If correlation coefficient between X and Y based on 16 pairs of observations is 0.80, then probable error is:
Answer: (2) 0.06
$PE = 0.6745 \, \dfrac{1 - r^2}{\sqrt n} = 0.6745 \times \dfrac{0.36}{4} = 0.061 \approx 0.06$.
Study this: Statistical Methods Unit 3 — Concurrent Deviation, Multiple & Partial Correlation
If $\mathrm{COV}(X,Y) = -16.5$, $\mathrm{Var}(X) = 2.89$ and $\mathrm{var}(Y) = 100$, then $r_{XY}$ is:
Answer: (3) -0.97
$r = \dfrac{\mathrm{Cov}(X,Y)}{\sigma_X \sigma_Y} = \dfrac{-16.5}{1.7 \times 10} = -0.97$.
Study this: Statistical Methods Unit 2 — Correlation
Let $r_{XY}$ be the coefficient of correlation between X and Y. If variable $U = 3X$ and variable $V = Y + 2$, then coefficient of correlation between U and V is:
Answer: (4) r(U,V)
Correlation is unchanged by a change of origin and by a change of scale with a positive factor. $U = 3X$ rescales $X$ by 3 and $V = Y + 2$ shifts $Y$, so $r_{UV} = r_{XY}$. That is option 4, which the paper prints as r(U,V) where it means r(X,Y).
Study this: Statistical Methods Unit 2 — Correlation
If the mean deviation of X from its mean is 5, then the mean deviation of Y = 2X+3 from its mean is:
Answer: (1) 10
Adding 3 moves every value and the mean alike; multiplying by 2 doubles every deviation: $MD_Y = 2 \times 5 = 10$.
Study this: Descriptive Statistics Unit 4 — Measures of Dispersion
Given below are two statements labelled as Assertion (A) and Reasoning (R).
Assertion (A): For a grouped frequency distribution table with one or both of the terminal classes as open, median can be computed.
Reasoning (R): Mode can be computed in case of open ended terminal classes. In the light of the above, choose the correct option.
Answer: (2) Both A and R are true and R is not correct explanation of A.
The median needs only the cumulative frequencies up to its class, and the mode only its own and neighbouring classes, so both survive open end classes. Both are true, but one does not explain the other.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
Statement 1: The mean of first 10 natural numbers is 10.
Statement 2: If 3 is subtracted from original observations, then mean does not change.
Statement 3: If original observations are multiplied by a constant, then median also gets multiplied by same constant. On the basis of the above statements, which of the following statement/s is/are true?
Answer: (3) Only 3 is true
The mean of 1 to 10 is 5.5 (1 false). Subtracting 3 lowers the mean by 3 (2 false). Multiplying by a constant multiplies the median too (3 true).
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
For the following frequency distribution table, the third quartile is equal to:
| Class-Intervals | 60-65 | 65-70 | 70-75 | 75-80 | 80-85 |
|---|---|---|---|---|---|
| Frequency | 3 | 8 | 13 | 12 | 4 |
Answer: (2) 77.5
$N = 40$, so $Q_3$ is the 30th value. Cumulative frequencies: 3, 11, 24, 36, 40 — the 75–80 class. $Q_3 = 75 + \dfrac{30 - 24}{12} \times 5 = 77.5$.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
On the basis of the following statements, 1.If the ranks in the first series are completely reversed in the second series, then Spearman’s Rank Correlation coefficient s equal to -1.
2. Spearman’s Rank Correlation coefficient is computed only for quantitative variables.
3. When only two individuals are ranked by two judges, then Spearman’s Rank Correlation coefficient takes only -1 and 1 values. Which of the following is true?
Answer: (2) 1 and 3 are true
Completely reversed ranks give $R = -1$ (1 true). Rank correlation is designed for qualitative, rankable characteristics (2 false). With two individuals $\sum d^2$ is 0 or 2, so $R$ is $1$ or $-1$ (3 true).
Study this: Statistical Methods Unit 2 — Correlation
Match the two columns.
| Column A | Column B |
|---|---|
| 1. Quantity Index | I Value Index |
| 2. Index of Industrial Production | II $\dfrac{\sum p_1 q_1}{\sum p_1 q_0}$ *100 |
| 3. measures the relative changes in total monetary worth of an item | III Measures the changes in the quantity of goods manufactured in a factory |
| 4. Paasche’s quantity index | IV Compilation and publication by Central Statistical Organisation, MOSPI |
Answer: (1) 1- III; 2-IV, 3-I; 4-II
A quantity index measures change in quantities, such as a factory's output (1-III); the Index of Industrial Production is compiled by the CSO, MoSPI (2-IV); change in total monetary worth is a value index (3-I); $\sum p_1 q_1 / \sum p_1 q_0$ is Paasche's quantity index (4-II).
Study this: Applied Statistics Unit 3 — Index Numbers
Trend, a component of time series, can be studied by using:
Answer: (1) Method of moving averages
Moving averages smooth out the short-term swings to reveal the trend. The other three are methods for seasonal variation.
Study this: Applied Statistics Unit 1 — Time Series
Which of the following is NOT true about a frequency polygon?
Answer: (3) It can’t be constructed for unequal class intervals.
A frequency polygon can be drawn for unequal classes too, once the heights are adjusted for class width; the other three statements are true.
Study this: Descriptive Statistics Unit 2 — Measurement Scales & Data Presentation
For any two events A and B, $P(A \cup B)$ is equal to
Answer: (2) P(A)+P(B)-P(AB)
The addition theorem: $P(A \cup B) = P(A) + P(B) - P(AB)$, subtracting the overlap counted twice. Option 1 holds only for mutually exclusive events.
Study this: Theory of Probability Unit 1 — Elementary Probability
For collection of primary data through questionnaires, which of the following is NOT true?
Answer: (4) Open-ended questions should be included as it is easy to analyze them.
Short, simple, logical, with sensitive questions last — all good practice. Open-ended answers are hard to tabulate and analyse, so option 4 is not true.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
Consider the following information in two lists A and B:
| List A | List B |
|---|---|
| (i) Secular Trend | (i) Long time fluctuations |
| (ii) Seasonal Variations | (ii) Rising trend of population |
| (iii) Cyclical variations | (iii) Isolated special occurrences |
| (iv) Irregular variations | (iv) Variations within a period of one year |
Match the List – A with List – B and select the correct option.
Answer: (1) A(i)-B(ii), A(ii)-B(iv), A(iii)-B(i), A(iv)-B(iii)
Secular trend: the rising trend of population; seasonal: variation within a year; cyclical: long-period fluctuations; irregular: isolated special occurrences.
Study this: Applied Statistics Unit 1 — Time Series
Consider the following information in two lists A and B:
| List A | List B |
|---|---|
| (i) Scatter Diagram | (i) Can not be used for finding correlation in a grouped frequency distribution. |
| (ii) Matrix Plot | (ii) Provides measure of correlation between two variables without ranking |
| (iii) Karl Pearson Coefficient of correlation | (iii) Provides rough measure of correlation between two variables |
| (iv) Spearman's Rank Correlation | (iv) Provides rough measure of correlation among several variables |
Match the List – A with List – B and select the correct option.
Answer: (3) A(i)-B(iii), A(ii)-B(iv), A(iii)-B(ii), A(iv)-B(i)
A scatter diagram gives a rough idea of correlation between two variables (i-iii); a matrix plot does so among several (ii-iv); Pearson's $r$ measures it without ranking (iii-ii); Spearman's rank correlation cannot be used on a grouped frequency distribution (iv-i).
Study this: Statistical Methods Unit 2 — Correlation
Consider the following statements:
Statement I: Seasonal variations can occur within a period of one year.
Statement II: Increased demand of woolen cloths during winter is a seasonal variation. Which of the statements given above is/are correct?
Answer: (4) Both the statements I and II are correct
Seasonal variation repeats within a year (I), and winter demand for woollens is a textbook example (II).
Study this: Applied Statistics Unit 1 — Time Series
The trend of the annual sales of a company is described by the following trend line.
$Y_c = 30 + 3.6X$
, this equation when converted to monthly basis becomes:
Answer: (1) $Y_c = 2.5 + 0.025X$
The annual figure is spread over 12 months, so the constant becomes $30/12 = 2.5$. The slope is per year of annual sales; per month of monthly sales it is divided by $12 \times 12$: $3.6/144 = 0.025$.
Study this: Applied Statistics Unit 1 — Time Series
Below are given figures of production '000's quintals of a sugar factory:
| Year | 1941 | 1942 | 1943 | 1944 | 1945 | 1946 | 1947 |
|---|---|---|---|---|---|---|---|
| Production | 80 | 90 | 92 | 83 | 94 | 99 | 92 |
The slope of the trend line for the above data is:
Answer: (3) 2
Seven years, so take $X = -3, \dots, 3$ with 1944 as origin; $\sum X = 0$ and $\sum X^2 = 28$. $\sum XY = -240 - 180 - 92 + 0 + 94 + 198 + 276 = 56$, so the slope $b = 56/28 = 2$.
Study this: Applied Statistics Unit 1 — Time Series
For normal distribution, consider the following statements
1. Mean = Mode =Median;
2. Odd order central moments are identically equal to zero;
3. Coefficient of skewness is zero. Which of the following holds?
Answer: (4) All three are true
The normal distribution is symmetric, so mean, median and mode coincide, every odd-order central moment vanishes, and the skewness is zero.
Study this: Continuous Distributions Unit 4 — Normal Distribution
On the basis of the following statements,
1. Karl Pearson’s measure of skewness lies between -∞ and ∞;
2. Bowley’s measure of skewness lies between -1 and 1;
3. Karl Pearson’s measure of skewness lies between -3 and 3; Which of the following holds?
Answer: (1) 2 and 3 are true
Bowley’s measure lies between $-1$ and $1$, so 2 is true. Karl Pearson’s measure in its median form, $3(\text{Mean} - \text{Median})/\sigma$, lies between $-3$ and $3$, because the mean and the median are never more than one standard deviation apart. So 3 is true, and 1, which leaves it unbounded, is false: 2 and 3.
Study this: Descriptive Statistics Unit 5 — Moments, Skewness & Kurtosis
For the set of observations 1216, 1167, 1232, 1202, 1278, 1141 and 1221, the mean deviation about mean is:
Answer: (4) 32.69
Mean $= 8457/7 = 1208.14$. Absolute deviations 7.86, 41.14, 23.86, 6.14, 69.86, 67.14, 12.86 sum to 228.86, so MD $= 228.86/7 = 32.69$.
Study this: Descriptive Statistics Unit 4 — Measures of Dispersion
For 6 bags of rice, the mean weight per bag is 119 kg. The weights of 5 bags are 115 kg, 109 kg, 129 kg, 117 kg and 114 kg. The weight (in kg) of the sixth bag is equal to:
Answer: (4) 130
Total $= 6 \times 119 = 714$ kg; the five known bags weigh 584 kg; the sixth is $714 - 584 = 130$ kg.
Study this: Descriptive Statistics Unit 3 — Measures of Central Tendency
For collection of data through Schedules, which of the following does not hold?
Answer: (4) Reliability of collected data does not depend upon capability of enumerator
With schedules the enumerator asks the questions and records the answers, so the quality of the data depends heavily on the enumerator.
Study this: Descriptive Statistics Unit 1 — Statistical Description of Data
If $X \sim N(0,1)$ and $Y = X^2$ then $r_{XY}$ is:
Answer: (4) 0
$\mathrm{Cov}(X, X^2) = E(X^3) - E(X)E(X^2) = 0 - 0 = 0$, since the odd moments of $N(0,1)$ vanish; so $r = 0$ although $Y$ is a function of $X$.
Study this: Statistical Methods Unit 2 — Correlation
Based on 25 observations, sample correlation coefficient is calculated to be 0.7. The upper and lower limits of r will be:
No option is correct.
The usual limits are $r \pm PE$, with probable error $PE = 0.6745 \times \dfrac{1 - r^2}{\sqrt{n}} = 0.6745 \times \dfrac{1 - 0.49}{5} = 0.069$. That gives 0.769 and 0.631. None of the four options is this pair, so no option is correct, and the question counts for no one.
Study this: Statistical Methods Unit 3 — Concurrent Deviation, Multiple & Partial Correlation
Given that X, Y and $Z = (X + 2Y)$ are variables such that $\mathrm{Var}(X) = 4$, $\mathrm{Var}(Y) = 3$ and $\mathrm{Var}(Z) = 4$, then $r_{XY}$ is:
Answer: (3) $-\frac{\sqrt{3}}{2}$
$\mathrm{Var}(Z) = \mathrm{Var}(X) + 4\mathrm{Var}(Y)$ $+\, 4\mathrm{Cov}(X,Y)$, so $4 = 4 + 12 + 4\mathrm{Cov}$, so $\mathrm{Cov} = -3$ and $r = \dfrac{-3}{2\sqrt3} = -\dfrac{\sqrt3}{2}$.
Study this: Statistical Methods Unit 2 — Correlation
What will be the output of a two-input OR gate when both inputs are LOW (0)?
Answer: (1) 0
OR gives 1 if any input is 1; with both inputs 0 it gives 0.
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A NOT gate is used in a digital circuit, where it takes the output of an OR gate as its input. If the inputs to the OR gate are A = 0 and B = 1, then what will the final output after passing through the NOT gate be?
Answer: (1) 0
$0 \text{ OR } 1 = 1$, and NOT 1 $= 0$.
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Which of the following statements best describes the function of a NAND gate?
Answer: (3) A NAND gate outputs 0 only when both inputs are 1; otherwise, it outputs 1.
NAND is NOT-AND: AND gives 1 only when both inputs are 1, so NAND gives 0 only then and 1 otherwise.
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Read the given statement(s) and conclusions carefully. Assuming that the information given in the statement(s) is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusions logically follow(s) from the statement(s).
Statement: In 2’s complement representation, negative numbers are obtained by inverting all bits of the positive number and adding 1.
Conclusions:
I. A number with MSB = 1 in 2’s complement is always negative.
II. 2’s complement allows direct arithmetic operations without requiring separate subtraction circuits.
Answer: (3) Both conclusions I and II follow.
In two's complement the most significant bit carries a negative weight, so an MSB of 1 always means a negative number (I). Subtraction becomes addition of the complement, so the same adder serves both (II).
Which of the following best describes the functionality of a NOR gate in digital logic circuits?
Answer: (3) It is the inverse of an OR gate, producing a HIGH output only when both inputs are LOW.
NOR is NOT-OR: its output is HIGH only when both inputs are LOW.
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Which of the following is the quickest way to automatically adjust the width of a column, in MS Excel 2019?
Answer: (3) Double-clicking the right border of the column header.
Double-clicking the column header's right border autofits the column to its widest entry.
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Which MS Excel 2019 function returns the highest numeric value from a given range of cells?
Answer: (2) MAX
MAX returns the largest number in a range; LARGE needs a rank as well; MIN and AVERAGE do other jobs.
Study this: Data Science Computer Fundamentals and Office Automation Unit 4 — Spreadsheet Basics
Select the option that is correct regarding the following two statements labelled Assertion (A) and Reason (R).
Assertion (A): In MS-Excel 2019, inserting a new row in the middle of a dataset shifts the existing rows downward, preserving the relative cell references in formulas.
Reason (R): MS-Excel automatically updates absolute cell references when new rows or columns are inserted to ensure formulas remain accurate.
Answer: (2) Both Assertion (A) and Reason (R) are true, but (R) does not correctly explain (A).
Inserting a row moves the rows below it down, and every formula keeps pointing at the same cells, so A is true. Excel adjusts absolute references as well when rows or columns are inserted: a formula that refers to $A$10 refers to $A$11 once a row is inserted above row 10. The $ only stops a reference changing when a formula is copied. So R is true too. But R is about absolute references and A about relative ones, so R does not explain A.
Study this: Data Science Computer Fundamentals and Office Automation Unit 4 — Spreadsheet Basics
Which of the following is the most efficient method to edit data in a specific cell without replacing the existing content, in MS Excel 2019?
Answer: (2) Click the cell and press F2 before editing.
F2 opens the cell for editing with the cursor at the end of the existing content; typing straight into a selected cell replaces it.
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What will happen if a user selects multiple non-adjacent rows and attempts to delete them simultaneously, in MS Excel 2019?
Answer: (2) Excel will delete all the selected rows at once.
Select non-adjacent rows with Ctrl-click, then Delete: Excel removes them all at once.
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Which of the following best describes the role of cache memory in a computer system?
Answer: (1) It stores frequently accessed data to reduce access time for the processor.
Cache is a small, fast memory between the processor and RAM that holds frequently used data, cutting the average access time.
Which of the following options is correct with reference to the given statements and conclusions?
Statement 1: Direct Memory Access (DMA) enhances system performance by allowing data transfers without continuous CPU intervention.
Statement 2: DMA can transfer data between memory and I/O devices without needing CPU control at any stage.
Conclusions:
I. DMA improves efficiency by freeing up CPU resources for other tasks.
II. The CPU is never involved in any data transfer when DMA is used.
Answer: (1) Only conclusion I follows.
DMA frees the CPU during the transfer (I follows). The CPU still sets the transfer up and is told when it ends, so “never involved” (II) does not follow.
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Match the columns and select the correct option from the following.
| Column A (Features) | Column B (Descriptions) |
|---|---|
| 1. Fill Handle | A. Used to create a custom-defined sequence of values |
| 2. Flash Fill | B. Automatically recognises patterns and fills data accordingly |
| 3. Growth Series | C. Generates a sequence where each number is multiplied by a step value |
| 4. Linear Series | D. Increases values by a fixed step size to create a sequence |
Answer: (1) 1 → D, 2 → B, 3 → C, 4 → A
Flash Fill recognises the pattern in what you type and fills in the rest (2-B), and a growth series multiplies each value by a step (3-C). Dragging the fill handle continues values by a fixed step (1-D). Option 1 is the only one with all three of these; its last pair would fit better the other way round, since a linear series is itself the fixed-step sequence.
Study this: Data Science Computer Fundamentals and Office Automation Unit 5 — Data Analysis and Visualization
What happens when a user enters a number with leading zeros (e.g., 00789) into a cell, in MS Excel 2019, by default?
Answer: (2) Excel automatically removes the leading zeros and stores the number as 789.
A General-format cell treats 00789 as the number 789 and drops the zeros; to keep them, format the cell as Text or type a leading apostrophe.
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Which of the following statements about computer memory hierarchy is INCORRECT?
Answer: (3) ROM can be written and modified multiple times during normal computer operation.
ROM is read-only in normal operation; the other three statements about cache, virtual memory and SRAM are true.
21 questions test something no page on this site teaches yet. The working above is all there is for them for now: