Quantitative Techniques for Business Decision MCQs

Question. In ..................... regression analysis, only one independent variable is used to explain the dependent variable.
(a) Multiple
(b) Non-linear
(c) Linear
(d) None of the option

Answer: C

Question. Numerical measure of correlation is called .....................
(a) Coefficient of correlation
(b) Coefficient of determination
(c) Coefficient of non-determination
(d) Coefficient of regression

Answer: A

Question. Correlation analysis is a ..............................
(a) Univariate analysis
(b) Bivariate analysis
(c) Multivariate analysis
(d) Both b and c

Answer: D

Question. If all the points of a dot chart lie on a straight line parallel to the X-axis, it denotes .................................of correlation.
(a) High degree
(b) Low degree
(c) Moderate degree
(d) Absence

Answer: D

Question. Product moment correlation method is also called ........................
(a) Rank correlation
(b) Pearsonian correlation
(c) Concurrent deviation
(d) None of the option

Answer: B

Question. Correlation analysis between one dependent variable with one independent variable by keeping the other independent variables as constant is called.....................
(a) Partial correlation
(b) Multiple correlation
(c) Nonsense correlation
(d) Simple correlation

Answer: A

Question. The term regression was first used by..........................
(a) Karl Pearson
(b) Spearman
(c) R A Fisher
(d) Francis Galton

Answer: D

Question. If the regression line is X on Y, then the variable X is known as..........................
(a) Dependent variable
(b) Independent variable
(c) Bothe a and b
(d) None of the options

Answer: A

Question. Type I error is denoted by...........................
(a) Alpha
(b) Beta
(c) Gamma
(d) None of the option

Answer: A

Question. If the regression line is X on Y, then the variable X is known as..........................
(a) Dependent variable
(b) Explained variable
(c) Both a and b
(d) Regressor

Answer: C

Question. b_xy is the regression coefficient of the regression equation.....................
(a) Y on X
(b) X on Y
(c) Either a or b
(d) None of the option

Answer: A

Question. If b_xy and b_yx are two regression coefficients, they have:
(a) Same signs
(b) Opposite signs
(c) Either a or b
(d) None of the options.

Answer: A

Question. When the expected frequencies and observed frequencies completely coincide, the chi-square value will be ..............................
(a) + 1
(b) – 1
(c) 0
(d) None of the option

Answer: C

Question. A sample is treated as large sample, when its size is.............................
(a) More than 100
(b) More than 75
(c) More than 50
(d) More than 30

Answer: D

Question. If ‘r’ is the correlation coefficient between two variables, then:
(a) 0 < r < 1
(b) – 1 ≤ r ≤ 1
(c) r ≥ 0
(d) r ≤ 0

Answer: B

Question. Testing of hypotheses H_o : μ = 65 vs. H₁ : μ < 65, is a ...................test.
(a) One sided left tailed test
(b) One sided right tailed test
(c) Two tailed test
(d) None of the option

Answer: A

Question. Which of the following is a non-parametric test?
(a) F-test
(b) Z-test
(c) Wilcoxon test
(d) All of the options

Answer: C

Question. Chi-square test was first used by ...............................
(a) R A Fisher
(b) William Gosset
(c) James Bernoulli
(d) Karl Pearson

Answer: D

Question. The technique of analysis of variance was developed by .............................
(a) Frank Wilcoxon
(b) Karl Pearson
(c) R A Fisher
(d) Kolmogrov

Answer: C

Question. Non-parametric test is :
(a) Distribution free test
(b) Not concerned with parameter
(c) Does not depend on the particular form of the distribution
(d) None of the option

Answer: D

Question. Z test was designed by ........................................
(a) R A Fisher
(b) Wilcoxon
(c) Wald wolfowitz
(d) W S Gosset

Answer: A

Question. The regression coefficient and correlation coefficient of the two variables will be the same if their .............................are same.
(a) Arithmetic mean
(b) Standard deviation
(c) Geometric mean
(d) Mean deviation

Answer: B

Question. Scatter diagram is also called ......................
(a) Dot chart
(b) Correlation graph
(c) Both a and b
(d) None of the option

Answer: A

Question. Pearsonian correlation coefficient if denoted by the symbol ...............
(a) K
(b) r
(c) R
(d) None of the option

Answer: C

Question. ...........................attempts to determine the degree of relationship between variables.
(a) Regression analysis
(b) Correlation analysis
(c) Inferential analysis
(d) None of the option

Answer: B

Question. If coefficient of correlation is more than ................of its P E, correlation is significant.
(a) 2 times
(b) 5 times
(c) 6 times
(d) 10 times

Answer: C

Question. Rank correlation coefficient was discovered by....................................
(a) Fisher
(b) Spearman
(c) Karl Pearson
(d) Bowley

Answer: B

Question. In correlation analysis, Probable Error = ........................ x 0.6745
(a) Standard deviation
(b) Standard error
(c) Coefficient of correlation
(d) None of the option

Answer: B

Question. If r = 0, the two regression lines are:
(a) Coincident
(b) Parallel
(c) Perpendicular to each other
(d) None of the option

Answer: C

Question. If all the points of a scatter diagram lie on a straight line falling from left upper corner to the right bottom corner, the correlation is called..................
(a) Zero correlation
(b) High degree of positive correlation
(c) Perfect negative correlation
(d) Perfect positive correlation

Answer: C

Question. An alternative hypothesis is denoted by...........................
(a) H₀
(b) H₁
(c) AH
(d) None of the option

Answer: B

Question. The probability of rejecting a true null hypothesis is called......................
(a) Degree of freedom
(b) Level of significance
(c) Level of confidence
(d) None of the option

Answer: B

Question. ...............refers to the number of independent observations which is obtained by subtracting the number of constraints from the total number of observations.
(a) Sample size
(b) Degree of freedom
(c) Level of significance
(d) Level of confidence

Answer: B

Question. Student’s t-test is applicable when:
(a) The values of the variate are independent
(b) The variable is distributed normally
(c) The sample is small
(d) All the above

Answer: D

Question. Testing of hypotheses H_o : μ = 65 vs. H₁ : μ ≠ 65, is a ...................test.
(a) One sided left tailed test
(b) One sided right tailed test
(c) Two tailed test
(d) None of the option

Answer: C

Question. Degrees of freedom for Chi-squre test in case of contingency table of order (2x2) is:
(a) 4
(b) 3
(c) 2
(d) 1

Answer: D

Question. Analysis of variance utilises..................
(a) F test
(b) Chi square test
(c) Z test
(d) t test

Answer: A

Question. What type of chart will be used to plot the number of defective in the output of any process?
(a) x̄ chart
(b) R chart
(c) C chart
(d) P chart

Answer: D

Question. The control charts used for the fraction of defective items in a sample is............................
(a) Range chart
(b) P-chart
(c) C-chart
(d) Mean chart

Answer: B

Question. The dividing lines between random and non-random deviations from mean of the distribution are known as ..........................
(a) Upper Control Limit
(b) Lower Control Limit
(c) Control Limits
(d) Two sigma limit

Answer: C

Question. If r= +1, the correlation is said to be ...................
(a) High degree of +ve correlation
(b) High degree of –ve correlation
(c) Perfect +ve correlation
(d) Perfect –ve correlation

Answer: C

Question. A high degree of +ve correlation between availability of rainfall and weight of weight of people is:
(a) A meaningless correlation
(b) A spurious correlation
(c) A nonsense correlation
(d) All of the options

Answer: D

Question. If change in one variable results a corresponding change in the other variable, then the variables are.........................
(a) Correlated
(b) Not correlated
(c) Any of the above
(d) None of the options

Answer: A

Question. Non-linear correlation is also called....................................
(a) Non-curvy linear correlation
(b) Curvy linear correlation
(c) Zero correlation
(d) None of the option

Answer: B

Question. Coefficient of correlation explains .........................of the relationship between two variables.
(a) Degree
(b) Direction
(c) Both of the above
(d) None of the options

Answer: C

Question. The point of intersection of two regression lines is..........................
(a) (0,0)
(b) (1,1)
(c) (x,y)
(d) (x̄, ӯ)

Answer: D

Question. If r = ± 1, the two regression lines are...............................
(a) Coincident
(b) Parallel
(c) Perpendicular to each other
(d) None of the option

Answer: A

Question. The G M of two regression coefficients byx and bxy is equal to ..........................
(a) r
(b) r²
(c) 1 – r²
(d) None of the option

Answer: A

Question. If the correlation coefficient between two variables, X and Y, is negative, then the regression coefficient of Y on X is.............................
(a) Positive
(b) Negative
(c) Not certain
(d) None of the option

Answer: B

Question. If the discrepancy between observed and expected frequencies are greater, ......................... will be the chi-square value.
(a) Greater
(b) Smaller
(c) Zero
(d) None of the option

Answer: A

Question. The geometric mean of the two regression coefficient, b_xy and b_yx is equal to:
(a) r
(b) r²
(c) 1
(d) None of the options

Answer: A

Question. Accepting a null hypothesis when it is false is called...............................
(a) Type I error
(b) Type II error
(c) Probable error
(d) Standard error

Answer: B

Question. While computing F ratio, customarily, the larger variance is taken as .....................
(a) Denominator
(b) Numerator
(c) Either way
(d) None of the option

Answer: B

Question. Degrees of freedom for Chi-squre test in case of contingency table of order (5x5) is:
(a) 25
(b) 16
(c) 10
(d) Infinity

Answer: B

Question. Z test was designed by .......................................
(a) R A Fisher
(b) Wilcoxon
(c) Wald wolfowitz
(d) W S Gosset

Answer: A

Question. If the dots in a scatter diagram fall on a narrow band, it indicates a ....................... degree of correlation.
(a) Zero
(b) High
(c) Low
(d) None of the option

Answer: B

Question. If the ratio of change in one variable is equal to the ratio of change in the other variable, then the correlation is said to be .....................
(a) Linear
(b) Non-linear
(c) Curvilinear
(d) None of the option

Answer: A

Question. When the amount of change in one variable leads to a constant ratio of change in the other variable, then correlation is said to be .........................
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Answer: A

Question. The –ve sign of correlation coefficient between X and Y indicates.............................
(a) X decreasing, Y increasing
(b) X increasing, Y decreasing
(c) Any of the above
(d) There is no change in X and Y

Answer: C

Question. ....................refers to analysis of average relationship between two variables to provide mechanism for prediction.
(a) Correlation
(b) Regression
(c) Standard error
(d) None of the option

Answer: B

Question. The level of probability of accepting a true null hypothesis is called.......................
(a) Degree of freedom
(b) Level of significance
(c) Level of confidence
(d) Degree of party

Answer: C

Question. If X and Y are independent, the property b_yx = b_xy = 0 is called ...................
(a) Fundamental property
(b) Magnitude property
(c) Mean property
(d) Independence property

Answer: D

Question. Type II error means..............................
(a) Accepting a true hypothesis
(b) Rejecting a true hypothesis
(c) Accepting a wrong hypothesis
(d) Rejecting a wrong hypothesis

Answer: C

Question. To test a hypothesis about proportions of items in a class, the usual test is..............
(a) t-test
(b) Z- test
(c) F test
(d) Sign test

Answer: B

Question. Total number of observations – number of constraints =......................
(a) Level of significance
(b) Degree of freedom
(c) Level of confidence
(d) Sample size

Answer: B

Question. The range of F ratio is ........................................
(a) – 1 to + 1
(b) – ∞ to ∞
(c) 0 to ∞
(d) 0 to 1

Answer: C

Question. ........................is the simplest and most widely used non-parametric test
(a) Sign test
(b) K-S test
(c) Chi-square tst
(d) Wilcoxon matched paired test

Answer: C

Question. Control charts are also termed as...............................
(a) Shewart charts
(b) Process behaviour chart
(c) Both a and b
(d) None of the option

Answer: C

Question. The control charts used to monitor variable is...........................
(a) Range chart
(b) P-chart
(c) C-chart
(d) All of the options

Answer: A

Question. When the values of two variables move in the same direction, correlation is said to be ............................
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Answer: C

Question. If all the points of a dot chart lie on a straight line vertical to the X-axis, then coefficient of correlation is ...................
(a) 0
(b) +1
(c) –1
(d) None of the option

Answer: A

Question. The unit of Coefficient of correlation is ........................
(a) Percentage
(b) Ratio
(c) Same unit of the data
(d) No unit

Answer: D

Question. Study of correlation among three or more variables simultaneously is called............
(a) Partial correlation
(b) Multiple correlation
(c) Nonsense correlation
(d) Simple correlation

Answer: B

Question. If there are two variables, there can be at most............................... number of regression lines.
(a) One
(b) Two
(c) Three
(d) Infinite

Answer: B

Question. If the regression line is Y on X, then the variable X is known as..........................
(a) Independent variable
(b) Explanatory variable
(c) Regressor
(d) All the above

Answer: D

Question. The Correlation coefficient between two variables is the ........................... of their regression coefficients.
(a) Arithmetic mean
(b) Geometric mean
(c) Harmonic mean
(d) None of the option

Answer: B

Question. 1 – Level of confidence =.............................
(a) Level of significance
(b) Degree of freedom
(c) Either a or b
(d) None of the option

Answer: A

Question. In a correlation analysis, if r= 0, then we may say that there is .................. between variables.
(a) No correlation
(b) Linear correlation
(c) Perfect correlation
(d) None of the option

Answer: A

Question. Accepting a null hypothesis when it is true is called...............................
(a) Type I error
(b) Type II error
(c) Probable error
(d) No error

Answer: D

Question. If one regression coefficient is negative, the other is ...............................
(a) 0
(b) – ve
(c) +ve
(d) Either a or b

Answer: B

Question. .........................tests follow assumptions about population parameters.
(a) Parametric
(b) Non-parametric
(c) One-tailed
(d) Two-tailed

Answer: A

Question. The Chi-squre quantity ranges from ........................ to ...........................
(a) – 1 to + 1
(b) – ∞ to ∞
(c) 0 to ∞
(d) 0 to 1

Answer: C

Question. When the values of two variables move in the opposite directions, correlation is said to be ............................
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Answer: D

Question. The rank correlation coefficient is always............................
(a) + 1
(b) – 1
(c) 0
(d) Between + 1 and – 1

Answer: D

Question. Coefficient of correlation lies between:
(a) 0 and +1
(b) 0 and –1
(c) –1 and +1
(d) – 3 and +3

Answer: C

Question. For perfect correlation, the coefficient of correlation should be ..........................
(a) ± 1
(b) + 1
(c) – 1
(d) 0

Answer: A

Question. If r = 1, the angle between the two regression lines is.........................
(a) Ninety degree
(b) Thirty degree
(c) Zero degree
(d) Sixty degree

Answer: C

Question. b_yx is the regression coefficient of the regression equation.....................
(a) Y on X
(b) X on Y
(c) Either a or b
(d) None of the option

Answer: B

Question. If X and Y are independent, the value of b_yx is equal to ........................
(a) Zero
(b) One
(c) Infinity
(d) Any positive value

Answer: A

Question. Which type of error is more severe error:
(a) Type I error
(b) Type II error
(c) Both a and b
(d) None of the option

Answer: B

Question. ......................... is the original hypothesis
(a) Null hypothesis
(b) Alternative hypothesis
(c) Either a or b
(d) None of the option

Answer: A

Question. While applying chi-square test, the frequency in any cell should not be ......................
(a) More than 5
(b) Less than 5
(c) More than 10
(d) Less than 10

Answer: B

Question. The control charts used to monitor attributes is............................
(a) Range chart
(b) P-chart
(c) C-chart
(d) All of the options

Answer: B

Question. The control charts used for the number of defects per unit is:
(a) Range chart
(b) P-chart
(c) C-chart
(d) Mean chart

Answer: C

Question. If r is the simple correlation coefficient, the quantity r² is known as ...................
(a) Coefficient of determination
(b) Coefficient of non-determination
(c) Coefficient of alienation
(d) None of the option

Answer: A

Question. Probable error is used to:
(a) Test the reliability of correlation coefficient
(b) Measure the error in correlation coefficient
(c) Both a an b
(d) None of the option

Answer: A

Question. If the regression line is Y on X, then the variable X is known as..........................
(a) Dependent variable
(b) Independent variable
(c) Both a and b
(d) None of the options

Answer: B

Question. The property that b_yx > 1 implies that b_xy < 1 is known as .....................
(a) Fundamental property
(b) Magnitude property
(c) Signature property
(d) None of the option

Answer: B:

Question. Whether a test is one sided or two sided, depends on........................
(a) Simple hypothesis
(b) Composite hypothesis
(c) Null hypothesis
(d) Alternative hypothesis

Answer: D

Question. Testing of hypotheses H_o : μ = 45 vs. H₁ : μ > 45 when the population standard deviation is known, the appropriate test is:
(a) t-test
(b) Z test
(c) Chi-square test
(d) F test

Answer: B

Question. Regression coefficient is independent of...........................
(a) Origin
(b) Scale
(c) Both a and b
(d) Neither origin nor scale

Answer: A

Question. Process control is carried out:
(a) Before production
(b) During production
(c) After production
(d) All of the options

Answer: B

Question. The techniques which provide the decision maker a systematic and powerful means of analysis to explore policies for achieving predetermined goals are called.........................
(a) Correlation techniques
(b) Mathematical techniques
(c) Quantitative techniques
(d) None of the options

Answer: C

Question. Coefficient of correlation explains:
(a) Concentration
(b) Relation
(c) Dispersion
(d) Asymmetry

Answer: B

Question. If r is the simple correlation coefficient, the quantity 1 -- r² is known as ...................
(a) Coefficient of determination
(b) Coefficient of non-determination
(c) Coefficient of alienation
(d) None of the option

Answer: B

Question. Regression line is also called................................
(a) Estimating equation
(b) Prediction equation
(c) Line of average relationship
(d) All the above

Answer: D

Question. A wrong decision about null hypothesis leads to:
(a) One kind of error
(b) Two kinds of errors
(c) Three kinds of errors
(d) Four kinds of errors

Answer: B

Question. Testing of hypotheses H_o : μ = 85 vs. H₁ : μ > 85, is a ...................test.
(a) One sided left tailed test
(b) One sided right tailed test
(c) Two tailed test
(d) None of the option

Answer: B

Question. Calculated value of chi-square is always........................
(a) Positive
(b) Negative
(c) Zero
(d) None of the option

Answer: A

Question. Which one of the following is a non-parametric test?
(a) F test
(b) Z test
(c) t test
(d) Wilcoxon test

Answer: A

Question. Runs test was designed by .............................
(a) Kruskal and Wallis
(b) Kolmogrov and Smirnov
(c) Wald wolfowitz
(d) Karl Pearson

Answer: C

Question. Spearman’s Rank Correlation Coefficient is usually denoted by....................
(a) k
(b) r
(c) S
(d) R

Answer: D

Question. Correlation analysis between two sets of data only is called....................
(a) Partial correlation
(b) Multiple correlation
(c) Nonsense correlation
(d) Simple correlation

Answer: D

Question. If all the dots of a scatter diagram lie on a straight line falling from left bottom corner to the right upper corner, the correlation is called.................
(a) Zero correlation
(b) High degree of positive correlation
(c) Perfect negative correlation
(d) Perfect positive correlation

Answer: D

Question. Power of a test is related to ........................
(a) Type I error
(b) Type II error
(c) Both a and b
(d) None of the option

Answer: B

Question. A null hypothesis is denoted by...........................
(a) H₀
(b) H₁
(c) NH
(d) None of the option

Answer: A

Question. Degrees of freedom for Chi-squre test in case of contingency table of order (4x3) is:
(a) 4
(b) 3
(c) 6
(d) 7

Answer: C

Question. If dots are lying on a scatter diagram in a haphazard manner, then r = ......................
(a) 0
(b) +1
(c) –1
(d) None of the option

Answer: B

Question. Type II error is denoted by....................................
(a) Alpha
(b) Beta
(c) Gamma
(d) None of the option

Answer: B

Question. If b_yx > 1, then b_xy is:
(a) Greater than one
(b) Less than one
(c) Equal to one
(d) Equal to zero

Answer: B

Question. Student’s t-test was designed by ............................
(a) R A Fisher
(b) Wilcoxon
(c) Wald wolfowitz
(d) W S Gosset

Answer: D

Question. ........................is user for testing goodness of fit.
(a) Wilcoxon test
(b) Sign test
(c) K-S Test
(d) Chi-square test

Answer: D

Question. When the amount of change in one variable leads to a constant ratio of change in the other variable, then correlation is said to be .........................
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Answer: A

Question. The property that both the regression coefficients and correlation coefficient have same signs is called...............................
(a) Fundamental property
(b) Magnitude property
(c) Signature property
(d) None of the option

Answer: C

Question. When sample is small,....................... test is applied.
(a) t-test
(b) Z test
(c) F test
(d) None of the option

Answer: A

Question. Arithmetic mean of the two regression coefficients is:
(a) Equal to correlation coefficient
(b) Greater than correlation coefficient
(c) Less than correlation coefficient
(d) Equal to or greater than correlation coefficient

Answer: B

Question. The –ve sign of correlation coefficient between X and Y indicates.............................
(a) X decreasing, Y increasing
(b) X increasing, Y decreasing
(c) Any of the above
(d) There is no change in X and Y

Answer: C

Question. By testing of hypothesis, we mean:
(a) A significant procedure in Statistics
(b) A method of making a significant statement
(c) A rule for accepting or rejecting hypothesis
(d) A significant estimation of a problem.

Answer: C

Question. In one way ANOVA, the variances are:
(a) Within samples
(b) Between samples
(c) Total
(d) All

Answer: D

Question. If r = 0.8, coefficient of determination is.....................................
(a) 80%
(b) 8%
(c) 64%
(d) 0.8%

Answer: C

Question. Level of significance is the probability of................................
(a) Type I error
(b) Type II error
(c) Both a and b
(d) None of the option

Answer: A

Question. The magnitude of the difference between observed frequencies and expected frequencies is called .......................
(a) F value
(b) Z value
(c) t value
(d) Chi-square value

Answer: D

Question. Coefficient of concurrent deviation depends on .......................
(a) The signs of the deviations
(b) The magnitude of the deviations
(c) Bothe a and b
(d) None of the option

Answer: A

Question. The idea of testing of hypothesis was first set forth by ..........................
(a) R A Fisher
(b) J Neyman
(c) E L Lehman
(d) A Wald

Answer: B

Question. While testing a hypothesis, if level of significance is not mentioned, we take ................... level of significance.
(a) 1%
(b) 2%
(c) 5%
(d) 10%

Answer: C

Question. Testing of hypothesis and ......................are the two branches of statistical inference.
(a) Statistical analysis
(b) Probability
(c) Correlation analysis
(d) Estimation

Answer: D