I.

MCQ (Answer all the following)

1. Application of statistical tools in area of marketing, production,
finance, research and development, manpower planning called as.
a. Statistics in Marketing b. Statistics in
Business
c. Statistics in Accounting d. Statistics in
Finance
2. Features of the statistics include.
a. Aggregate of facts b. Emotionally
expressed
c. Unsystematic manner d. Un-estimated Data
3. Objectives of the tabulation can be listed as.
a. To simplify complex data b. To facilitate
comparison
c. To bring out essential features of data d. All of the above
4. Functions of the statistics include.
a. It facilitates for formulating policies
b. It measures the trend behaviour
c. It tests hypothesis
d. All of the above
5. Statistics stands for the science of collection, presentation, analysis
and interpretation of.
a. Historical data b. Present data
c. Numerical Data d. All of the above
6. Statistics in management includes.
a. Focusing on big picture b. Ensuring product
quality
c. Evidence to substantiate positions d. All of the above
7. At which level statistics helps in understanding a country’s financial
state.
a. Macro level b. Micro level c. Both a&b d. None of the
above
8. A data can be classified as.
a. Qualitative Data b. Quantitative Data

c. Both a&b d. none of the above

9. Data or information that cannot be counted, measured or easily
expressed using numbers is called as.
a. Qualitative Data b. Quantitative Data
b. Both A&B d. None of the above
10. Data or information that can be counted, measured or easily
expressed using numbers is called as.
a. Qualitative Data b. Quantitative Data
 c. Both A&B d. None of the above
11. A systematic and logical representation of numeric data in rows and
columns to facilitate comparison and statistical analysis called as.
a. Estimation b. Presentation c. Tabulation d.
Deviation
12. The first step in the statistical investigation is.
a. Organization b. Collection c. Presentation d.
Analysis
13. The process arranging the collected resources in an orderly manner
is called as.
a. Organization b. Collection c. Presentation d.
Analysis
14. A detailed examination of anything complex in order to understand
its nature or to determine its essential features.
a. Organization b. Collection c. Presentation d.
Analysis
15. Data presented in an orderly manner facilitates statistical analysis.
a. Organization b. Collection c. Presentation d.
Analysis
16. Which of the following is not a disadvantage of using mean?
a. It is affected by extreme values
b. It cannot be computed in grouped data with open-ended class
intervals
c. It does not possess the desired algebraic property
d. None of the above
17. When the values in a series do not have equal importance, we
calculate the _______.
a. Mode b. Weighted mean c. A. M d. None of the
above
18. To calculate the median, all the items of a series have to be arranged
in a/an ________.
a. Descending order b. Ascending order
c. Ascending or descending order d. None of the above
19. What is the mean of the following numbers: 23, 45, 87, 40, 50?
a. 49 b. 34 c. 56 d. 60
20. Which of the following is a characteristic of a mean?
a. The sum of deviations from the mean is zero
b. It minimises the sum of squared deviations
c. It is affected by extreme scores
d. All of the above
21. From the following data, what is the value of the median?
20 21 25 26 23 29 32 39 33
 a. 26 b. 23 c. 25.22
d. 29

21 The f1 in the Mode formula denotes

a. Frequency of the class preceding the modal class
b. Frequency of Modal Class
c. Frequency of the class succeeding the modal class
d. Frequency exceeding the modal class
22 Which of the following statistics method is used to calculate the
average of the given numbers?
a. Median b. Mean c. Mode d. None of the
above
23 The measures of central tendency which appears in the middle of an
ordered sequence of values.
a. Median b. Mean c. Mode d. None of the
above
24 The value that occurs most frequently in a statistical distribution
a. Median b. Mean c. Mode d. None of the
above
25 The CF in the Median formula denotes.
a. Cumulative frequency preceding the median class
b. Frequency of median Class
c. Cumulative frequency succeeding the median class
d. None of the above
26 Find the median of the call received on 7 consecutive days 11, 13,
17, 14, 23, 25, 19
a. 13 b. 23 c. 25 d. 17
27 Find the mean of the given sets of data: 5, 8, 12, 13,12,14,6,8, 12,
and 10
a. 12 b. 10 c. 14 d. 15
28 Scope of the statistics includes.
a. Statistics in business b. Statistics in
Management
c. Statistics in Banking/finance d. All of the above
29 Find out ‘x’ value from 0-4 class interval.
a. 1 b. 2 c. 3 d. 4
30 Sigma X is 500 and N is 10 mean values is
a. 50 b. 500 c. 10 d. 250

31 Which one is the type of central tendency?

a. Mean b. Median c. Mode d. All of
the above
32 Purpose of median calculation is
 a. To find average b. To find highest
frequency
c. To find mid value d. None of the above

33 Find the median 5, 7, 9, 15, 20, 27, 32, 55, 60

a. 20 b. 15 c. 27 d. 32
34 CI is defined as.
a. Cumulative Interval b. Class Interval
c. Class Interest d. Cumulative Internal
35 Find out ‘x’ value from 10-20 class interval.
a. 12 b. 15 c. 18 d. 10

36 Find the mean of the given sets of data: 10, 12, 15, 28, 25, 35,45,8,
12, and 10
a. 25 b. 10 c. 20 d. 15

37 The f0 in the Mode formula denotes

a. Frequency of the class preceding the modal class
b. Frequency of Modal Class
c. Frequency of the class succeeding the modal class
d. Frequency exceeding the modal class
38 The f2 in the Mode formula denotes
a. Frequency of the class preceding the modal class
b. Frequency of Modal Class
c. Frequency of the class succeeding the modal class
d. Frequency exceeding the modal class

39 Who releases the figures of the wholesale price Index?

a. Ministry of Commerce and Industry
b. Ministry of finance
c. Ministry of Home Affairs
d. Ministry of Statistics and Program Implementation
40 Index numbers may be categorized in terms of?
a. Variables b. Constants c. Numbers d. All of
the above
41 The mean, mode, and median of the data set: 5, 4, 10, 12, 1, 5, 3, 7,
15, and 8 is respectively___________
a. 5, 6, 7 b. 7, 6, 5 c. 6, 5, 7 d. 7, 5, 6
42 Below are the observations of the marks of a student. What is the
value of mode?
84 85 89 92 93 89 87 89 92
a. 92 b. 87 c. 93 d. 89
43 Which is the best suitable measure of central tendency to construct
index number?
a. AM b. GM c. HM d.
median

44 Which of the following values is used as a summary measure for a

sample, such as a sample mean?
a. Population parameter b. Sample parameter
c. Sample statistic d. Population mean
45 Which of the following is a branch of statistics?
a. Descriptive statistics b. Inferential statistics
c. Industry statistics d. Both a and b
46 The control charts and procedures of descriptive statistics which are
used to enhance a procedure can be classified into which of these
categories?
a. Behavioural tools b. Serial tools
c. Industry statistics d. Statistical tools
47 Which of the following can also be represented as sample statistics?
a. Lowercase Greek letters b. Roman letters
c. Associated Roman alphabets d. Uppercase Greek letters
48 What are the variables whose calculation is done according to the
weight, height, and length known as?
a. Flowchart variables b. Discrete variables
c. Continuous variables d. Measuring variables
49 The mean of the data: 4, 10, 5, 9, 12 is;
a. 8 b. 10 c. 9 d. 15
50 The median of the data 13, 15, 16, 17, 19, 20 is:
a. 30/2 b. 31/2 c. 33/2 d. 35/2
51 Construction of a cumulative frequency table is useful in determining
the.
a. Mean b. Median c. Mode d. All
the above
52 If the variance of the data is 121, the standard deviation of the data
is:
a. 121 b. 11 c. 12 d. 21

53 An orderly set of data arranged in accordance with their time of

occurrence is called:
a. Arithmetic series b. Harmonic series
c. Geometric series d. Time series
54 A time series consists of:
a. Short-term variations b. Long-term
variations
 c. Irregular variations d. All of the above
55 Secular trend can be measured by:
a. Two methods b. Three methods
c. Four methods d. Five methods
56 The secular trend is measured by the method of semi-averages when:
a. Time series based on yearly values
b. Trend is linear
c. Time series consists of even number of values
d. None of them
57 Increase in the number of patients in the hospital due to heat stroke
is:
a. Secular trend b. Irregular variation
c. Seasonal variation d. Cyclical variation
58 In time series seasonal variations can occur within a period of:
a. Four years b. Three years
c. Less than One year d. Nine years
59 Wheat crops badly damaged on account of rains is:
a. Cyclical movement b. Random
movement
c. Secular trend d. Seasonal
movement

60 The method of moving average is used to find the:

a. Secular trend b. Seasonal variation
c. Cyclical variation d. Irregular variation
61 A complete cycle consists of a period of:
a. Prosperity and depression b. Prosperity and
recovery
c. Prosperity and recession d. Recession and
recovery
62 A complete cycle passes through:
a. Two stages b. Three stages c. Four stages d.
Difficult to tell
63 Most frequency used mathematical model of a time series is:
a. Additive model b. Mixed model
c. Multiplicative model d. Regression model
64 In a straight line equation Y = a + bX; a is the:
a. X-intercept b. Slope c. Y-intercept d. None
of them
65 In a straight line equation Y = a + bX; b is the:
a. Y-intercept b. Slope c. X-intercept d. Trend

66 Value of b in the trend line Y = a + bX is:

 a. Always negative b. Always positive
c. Always zero d. Both negative or
positive

67 In semi averages method, we divide the data into:

a. Two parts b. Two equal parts
c. Three parts d. Depending on size of
data
68 In fitting a straight line, the value of slope b remains unchanged with
the change of:
a. Scale b. Origin c. Both (a) and (b) d. Neither (a)
and (b)
69 Moving average method is used for measurement of trend when:
a. Trend is linear b. Trend is non linear
c. Trend is curvilinear d. None of them
70 Indicate which of the following an example of seasonal variations is:
a. Death rate decreased due to advance in science
b. The sale of air condition increases during summer
c. Recovery in business
d. Sudden causes by wars
71 The most commonly used mathematical method for measuring the
trend is:
a. Moving average method b. Semi average
method
c. Method of least squares d. None of them
72 A trend is the better fitted trend for which the sum of squares of
residuals is:
a. Maximum b. Minimum c. Positive d.
Negative
73 Decomposition of time series is called:
a. Histogram b. Analysis of time
series
c. Histogram d. De-trending
74 The fire in a factory is an example of:
a. Secular trend b. Seasonal
movements
b. Cyclical variations d. Irregular
variations

75 Increased demand of admission in the subject of computer in India

is:
a. Secular trend b. Cyclical trend
c. Seasonal trend d. Irregular trend
76 Increased demand of admission in the subject of computer in India
is:
a. Secular trend b. Cyclical trend
c. Seasonal trend d. Irregular trend
77 Damages due to floods, droughts, strikes fires and political
disturbances are:
a. Trend b. Seasonal c. Cyclical d. Irregular
78 The general pattern of increase or decrease in economics or social
phenomena is shown by:
a. Seasonal trend b. Cyclical trend
c. Secular trend d. Irregular trend
79 In moving average method, we cannot find the trend values of some:
a. Middle periods b. End periods
c. Starting periods d. Extreme periods
80 The best fitting trend is one which the sum of squares of residuals
is:
a. Negative b. Least c. Zero d.
Maximum
81 In fitting of a straight line, the value of slope remains unchanged by
change of:
a. Scale b. Origin c. Both origin and scale d. None
of them
82 Depression in business is:
a. Secular trend b. Cyclical c. Seasonal d.
Irregular
83 In fitting of straight line = 0
a. All the observed Y values lie on the line
b. All the Y values are greater than corresponding values
c. All the Y values are positive
d. None of them
84 The rise and fall of a time series over periods longer than one year is
called:
a. secular trend b. seasonal variation
c. Cyclical variation d. Irregular variation
85 A Time series has ______ components.
a. Two b. Three c. Four d. Five
86 The difference between the actual value of the time series and the
forecasted value is called:
a. Residual b. Sum of variation
c. Sum of squares of residual d. All of the above
87 A pattern that is repeated throughout a time series and has a
recurrence period of at most one year is called:
a. Cyclical variation b. Irregular variation
 c. Seasonal variation d. Long term
variation
88 When the production of a thing is maximum, this stage is called:
a. Boom b. Recovery c. Recession d.
Depression
89 When the production of a thing is minimum, this stage is called:
a. Prosperity b. Recession c. Recovery d.
Depression
90 When the production of thing is increasing towards prosperity, this
stage is called as:
a. Recession b. Recovery c. Boom d.
Depression
91 When the production of thing is decreasing, this stage is called:
a. Recession b. Recovery c. Prosperity d.
Depression
92 In semi averages method, if the number of values is odd then we
drop:
a. First value b. Last value c. Middle value d. Middle
two values
93 The trend values in freehand curve method are obtained by:
a. Equation of straight line b. Graph
c. Second degree parabola d. All of the above
94 The most important factors causing seasonal variations are ______.
a. Growth in population b. Technological
improvements
c. Weather and social customs d. Change in
fashions
95 The most widely used method of measuring seasonal variations is
_______.
a. Ratio-to-moving average method b. Ratio-to-trend
method
c. Link relative method d. Method of simple
average
96 In the least square linear trend equation Y= a + bX. if b is positive,
it indicates ______.
a. Declining trend b. Rising trend
c. No trend at all d. All of these

97 Cyclical fluctuations are caused by _________.

a. Wars b. Earthquakes c. Floods d. None
of these
98 Time-series analysis is based on the assumption that _______.
a. Random error terms are normally distributed
 b. There are dependable correlations between the variable to be
forecast and other independent variables.
c. Past patterns in the variable to be forecast will continue
unchanged into the future.
d. The data do not exhibit a trend.
99 Which of the following is not one of the four types of variation that
is estimated in time-series analysis?
a. Predictable b. Trend c. Cyclical d.
Irregular
100 In time-series analysis, which source of variation can be estimated
by the ratio-to-trend method?
a. Seasonal b. Trend c. Cyclical d.
Irregular
101 Number of periods included in a group for moving averages depend
on _______ in a time series data
a. Curvilinear trend b. Cyclic fluctuations
c. Seasonal fluctuations d. Period of
oscillation
102 A rise in price before Eid is an _________.
a. Seasonal trend b. Secular Trend
c. Cyclical trend d. Irregular trend
103 The most commonly used mathematical method for measuring the
trend is _______.
a. Moving average method b. Semi average
method
c. Least square d. Ratio to trend
104 The best-fitted trend line is one for which sum of squares of
residuals or errors is
a. Positive b. Negative c. Zero d.
Minimum

105 The 3 yearly moving average for the year 2005 is given by _______.
Year 2004 2005 2006 2007 2008
Y 3 6 9 3 4

a. 3 b. 9 c. 6 d. 0
106 For the given data semi averages for the first half is given by
_______.
Year 2010 2011 2012 2013 2014 2015 2016 2017
Y 20 16 9 11 40 23 21 12

a. 13 b. 15 c. 16 d. 14
107 For the straight-line equation Y= 56+12X, the trend value for X=-3
is given by _____.
a. 23 b. 36 c. 20 d. 68
108 For the given data short term fluctuations for the year 2013 by
using additive model is given by _______.
Year 2013 2014 2015 2016 2017
Y 80 90 92 83 94
Trend value 84 86 88 90 92

a. 4 b. -4 c. 0.95 d. -0.95
109 For the given data short term fluctuations for the year 2014 by
using Multiplicative model is given by _______.
Year 2013 2014 2015 2016 2017
Y 80 90 92 83 94
Trend value 84 86 88 90 92

a. 1.046 b. -1.046 c. -4 d. 1
110 Shortage of certain consumer goods before annual budget is due to
a. Secular trend b. Irregular variation
c. Seasonal variation d. Cyclical variation
111 Linear trend of a time series indicates towards.
a. Constant rate of growth b. Constant rate of
change
b. Change in geometric progression d. All the above
112 The method of moving average is used to find the
a. Seasonal trend b. Irregular trend
c. Secular trend d. Cyclical trend
113 If trend is absent in the data, then ________method is used of
computing seasonal indices.
a. Ratio to trend b. Simple Average
c. Semi average d. Ratio to moving
average
114 The method of least squares indicates that we choose the regression
line where the sum of the square of deviations of the points from the
line is.
a. positive b. Maximum c. Zero d.
Minimum
115 Variations in a time series are caused by sale of air condition
increase during summer.
a. Seasonal b. Irregular c. Secular d.
Cyclic
116 Trend in a time series means.
 a. Long-term regular movement b. Short-term regular
movement
c. Both (a) and (b) d. Neither (a)
nor (b)
117 A time series is a set of data recorded.
a. At successive points of time b. Periodically
c. At time or space intervals d. All the above
118 Which of the following is not present in a time series?
a. Seasonality b. Operational variations c. Trend
d. Cycle
119 A lock-out in a factory for a month belongs to _______ component of
a time series.
a. Irregular variation b. Secular
trend
c. Cyclical variation d. None of
these
120 The sales of departmental store on Dashera and Diwali are
associated with the component of a time series _________ variation.
a. Trend b. Seasonal c. Irregular d.
Cyclical
121 The consistent increase in production of cereals constitutes the
component of a time series ________.
a. Seasonal Variation b. Cyclical
Variation
c. Secular Trend d. None of
these
122 Secular trend is indicative of long-term variation towards
___________.
a. Increase only b. Decrease
only
c. Either increase or decrease d. None of
these
123 Irregular variations in a time series are caused by ___________.
a. Lockouts and strikes b. Epidemics
c. Floods d. All the above
124 Least Square method to estimate trend line in Time series consists
of estimating _______ constants.
a. Zero b. Two c. Less than two d. More
than two.
125 Simple average method is used to find ________.
a. Seasonal Variation b. Cyclic
Variation
 c. Secular trend d. None of
these
126 Most frequently used mathematical model of time series is
__________ model.
a. Additive b. Multiplicative c. Mixed d.
Regression
127 When the values in a series do not have equal importance, we
calculate the _______.
a. Mode b. Weighted mean
c. Arithmetic mean d. None of the above
128 Percentiles divide a series into ______.
a. Ten equal parts b. Twenty equal parts
c. Fifty equal parts d. Hundred equal
parts
129 What does the standard deviation measure?
a. The spread of a data set.
b. How much a data set is spread from its mean.
c. How much a data set is spread from another data set or the
mean of another data set.
d. None of the above
130 The measurements of spread or scatter of the individual values
around the central point is called:
a. Measures of dispersion b. Measures of
central tendency
c. Measures of skewness d. Measures of
kurtosis
131 The measures used to calculate the variation present among the
observations relative to their average is called:
a. Coefficient of kurtosis b. Absolute measures of
dispersion
c. Quartile deviation d. Relative measures of
dispersion
132 The degree to which numerical data tend to spread about an
average value called:
a. Constant b. Flatness c. Variation d.
Skewness
133 Given below the four sets of observations. Which set has the
minimum variation?
a. 46, 48, 50, 52, 54 b. 30, 40, 50, 60, 70
c. 40, 50, 60, 70, 80 d. 48, 49, 50, 51, 52
134 Which of the following is an absolute measure of dispersion?
a. Coefficient of variation b. Coefficient of
dispersion
 c. Standard deviation d. Coefficient of
skewness
135 The measure of dispersion which uses only two observations is
called:
a. Mean b. Median c. Range d. Coefficient of
variation
136 The range of the scores 29, 3, 143, 27, 99 is:
a. 140 b. 143 c. 146 d.
70
137 Half of the difference between upper and lower quartiles is called:
a. Interquartile range b. Quartile deviation
b. Mean deviation d. Standard deviation
138 process by which we estimate the value of dependent variable on
the basis of one or more independent variables is called:
a. Correlation b. Regression c. Residual d. Slope
139 Coefficient of correlation in case of frequency distribution could not
be calculated in case of
a. Karl Pearson b. Spearman
c. Least square method d. None of the above
140 Which of the following are methods under measures of dispersion?
a. Standard deviation b. Mean deviation
c. Range d. All of the above
141 The range represents _________.
a. The lowest number
b. The highest number
c. The middle number
d. The difference between the lowest and highest number
142 The square of standard deviation is ________.
a. Square deviation b. Mean square
deviation
c. Variance d. None of the above
143 A study in Statistics that helps to interpret the variability of data is
knowns as _________
a. Standard Deviation b. The measurer of Central
tendency
c. The measures of dispersion d. None of the above
144 Which Measures of Dispersion are used to compare the distribution
of two or more data sets?
a. Absolute Measure of Dispersion
b. A Relative Measure of Dispersion
c. Coefficient of Dispersion
d. None of these
 145 In absolute Measure of Dispersion, the Square root of variation is
known as ____
a. Mean Deviation b. Quartile Deviation
c. Variance d. Standard
Deviation
146 Which of these is simply the difference between the maximum and
minimum values given in a data set?
a. Range b. Mean Deviation
c. Standard Deviation d. All of these
147 What is the Arithmetic average of the Absolute Deviation of a series
called?
a. Coefficient of Mean Deviation b. Mean Deviation
c. Quartile Deviation d. Standard
Deviation
148 Are the variations present in the unit of a variable represented by
which dispersion method?
a. Coefficient of Variation
b. A relative measure of dispersion
c. The absolute measure of dispersion
d. Measure of dispersion
149 Which is the quickest measure of dispersion to compute?
a. Mean deviation b. Range
c. Variance d. Coefficient of
Range
150 Calculate Range from the following data
75, 29, 96, 15, 7, 8, 11, 7, 4, 9
a. 90 b. 92 c. 95 d. 98
151 Calculate Coefficient of Range from the following data
75, 29, 96, 15, 7, 8, 11, 7, 4, 9
b. 0.90 b. 0.92 c. 0.95 d. 0.98
152 Which of the following are characteristics of a good measure of
dispersion?
a. It should be easy to calculate
b. It should be based on all the observations within a series
c. It should not be affected by the fluctuations within the
sampling
d. All of the above

Theory notes (Section B & C)

 1. State the different characteristics and functions of
statistics.
Characteristics of statistics
1. Aggregate of facts:
Statistics is concerned with group of facts rather than a single fact
i.e., single and isolated/unrelated figures are not statistics.
E.g.: ram a student got 100 marks in statistics is not statistics, but if
the marks secured by entire class is recorded than it will be statistics.
2. Affected to a market extent by multiplicity of causes:
Numerical facts are not affected by one factor but are affected by a
large number of factors.
Eg: the prices of vegetables have increased by 80% in 2011 compared
to 40% in 2010. The reason for increase in price of commodity are
demand and supply natural calamities price of competitive products.
In physical science it is possible to isolate the effect of various factors
on a single item but statistics are commonly used in social sciences. It
is very difficult to study the effect of any one factor separately. in
statistical methods the effect of various factors effecting a particular
phenomenon are studied in a combined form through attempt is also
made to study the effect of different factors separately as well.
3. Numerically expressed:
Only numerical data can be called as statistics, qualitative expression
like good, bad, excellent, hardworking, poor are not statistics.
Eg: production of rice has increased in India is not statistics but the
production of statistics in India in 2003-2004 is 86.4 million tons
compared to 72.66 million tons in the year 2002-2003.
4. Enumerated or estimated according to reasonable standard of
accuracy:
Data can be collected either by enumeration or estimation. The data
collected by enumeration is more exact and accurate. Estimated
figures may not be absolutely accurate. If the number of observation
is small than enumeration is used but if the numbers of observation
are large then estimation can be used. The degree of accuracy
depends to a large extent on the purpose for which the information is
collected and the nature of particular problem about which the data is
collected. these cannot be uniform standard of accuracy for all types
of data collection.
Eg: while collecting marks of a student or no. of votes got by a
candidate in the election, it is necessary the data should be accurate.
But while calculating number of people watching cricket match in a
station then estimation can be used.
5. Collected in a systematic manner:
 For accuracy and reliability, the data should be collected in a
systematic manner. Data collected in haphazard manner may not give
accurate result and attempt should be made to reduce personal bias
to the minimum while collecting the data.
6. For a predetermined purpose:
The purpose of collecting the data should be predetermined otherwise
the data collected may not serve any purpose and become useless.
One should not waste time and money in collecting the info which is
irrelevant for the enquiry.
Eg: for the purpose of knowing the cost of living of poor people then
we should collect information about the items. Consumed by poor
people but if we collect the information about cars refrigerators air
conditioner is useless.
7. Placed in relation to each other:
Statistical info is collected for the purpose of comparison. if the data
collected cannot be compared then the purpose will be waste. The info
collected should be homogeneous and not heterogeneous in character,
so that comparison is possible.
Eg: different data relating to population of a country different years or
population of different countries in some fixed period will be statistics.
it would be meaningless to compare the height of human being with
that of giraffe or weight of a human being with that of elephant.

Function of statistics
1. To present facts in definite form: facts are expressed in numbers
easily understood. Statement of facts expressed in quantitative term
are not convincing than a vague utterance. Eg: during recent floods
there was heavy loss to agriculture. This statement is not clear, but if
it is stated that during flood crops worth 10 lakhs was destroyed is
clearer.
2. Simplifies the data: the function of statistical method is to
simplifying large mass of numerical data and present them in a more
intelligible form. Statistical methods help in reducing complex data
into simple figures which can be interpreted more accurately i.e it
helps in simplifying complex data so as to make them understandable.
The methods used are methods of central tendency, dispersion etc.
3. Comparison: after simplifying the data, it can be correlated and
compared. Stats enables impartial and fair comparison of data across
a wide range of competing alternatives. The relationship between two
groups is best presented by statistical devices like averages etc.
4. Formulation and testing of hypothesis: it means something to be
tested or proved statistical method are extremely useful in formulating
and testing of hypothesis and to discover new theory stats has
 developed with its own theories, principles, methodology which can be
used to answer specific queries. A statistician can take the help of
stats and use sampling techniques and principles to arrive at a
decision. whether chloromycetin is effective in curing typhoid, whether
students are benefited by coaching? Etc.
5. Helps in prediction /forecasting: statistical methods are very useful
tool in attempting to forecast the future forecasting means making
estimates for future based on past and present behaviour.
Eg: if an investor wishes to purchase shares of reliance industry, he
can use statistics to find whether the share prices are likely to
increase or decrease. He can use correlation and regression methods
to know the impact of some key factor on the performance of the
company and then take a decision
6. Helps in policy formulation and decision making: with the help of
statistics the government can frame suitable policies.
Eg: data about population, its distribution by age and gender helps
the govt in determining the future needs such as food, clothing,
housing, educational facilities, water etc. similarly detailed info on the
unemployed person their qualification, experience etc. will help the
govt in framing policies to tackle unemployment problem.
7. To study relationship between various phenomena: statistics
enable to observe and understand the relationship between different
facts/phenomena. Eg: relationship between demand and supply,
rainfall and agricultural production can be best measured with the
help of statistical method like correlation.
8. Enlarge individual experience: the function of stats is to large
human experience and knowledge. statistics make it easier for a man
to understand, describe and measure the impact of any action. It
improves scientific facts without stats man may not be able to acquire
knowledge quickly and he may not take long time to bring drastic
changes. statistics helps in solving problems in various fields like
political, economic, social or cultural.
9. Measures uncertainty: statistics helps to take decision on the face of
uncertainty and study the chance of accuracy of certain events. it also
helps in finding out the impact of happening of an event. It helps
mankind to cope with uncertainty.
10. Measures the effect: statistics helps not only in formulating a policy
but also help in measuring the effect of a policy. Statistics act as
guide. Eg: the effect of change in bank rate, tax rate can be studied
with the help of stats.
11. To classify the data: statistical methods help to arrange data
according to common features. This facilitates analysis and
comparison.
 12. To draw valid inferences: in fields of business and economics many
times rational and valid conclusion are drawn by collecting and
analysing available facts.

2. What is statistics? Write its limitation?

Meaning
Statistics stands for the science of collection, presentation, analysis
and interpretation of numerical data.
Achenwall, (father of statistics), defined statistics as “The political
science of the several centuries”. In the early years ‘statistics’ connoted a
collection of facts about the State or the people in the State for
administrative and political purposes.

Limitation of statistics
1. Statistics does not study qualitative aspect: statistics are
numerical statement of facts. It can be applied only to such problems
that can be measured quantitatively. statistics cannot be used directly
for the study of qualitative characteristics such as honesty, beauty,
intelligence, health, culture etc. however it may be possible to analyse
the characteristics indirectly. E.g.: we can study intelligence of
students on the basis of marks secured by them in examination.
2. Statistics does not reveal entire study: statistical analysis may
focus on only certain aspects of the study and may not bring to light
the entire story. Eg: opposition in USA, to outsourcing jobs in India is
justified citing statistics on job losses. However, if the demographic
profile of USA is studied one finds that America is actually heading for
an era of shortage of personnel. a good statistician must recognize the
need to consider all facts and complete story rather than rely on a few
tools of statistical analysis.
3. No cause and effect relationship: statistics does not necessarily
bring the cause and effect relationship between various parameters.
The investigator needs to apply judgement to determine the
relationship between the parameters. E.g.: if sales and advertisement
expenditure of an organization is studied, it does not tell that there
cause and effect relationship between the two. If fact regression
techniques can be applied to find out what would be the
advertisement expenditure for a given figure of sales. This may not be
practical as sales does not directly cause impact on advertisement.
4. Statistics can be used by expert only: statistical technique is not so
simple to be used by any layman. The technique being complicated in
 nature can be used only by experts knowing the application of
statistical methodologies Otherwise the result can be misleading and
dangerous.
5. Statistics does not deal with individual: stats deal only with
aggregates rather than individual items. A single or isolated figure
cannot be regarded as statistics. E.g.: an individual item like height of
a student in a class is 5.6 is not statistics, but if we say average
height of the class is 5.8 then it is statistics. In statistical methods we
deal with aggregates and not with a single figure.
6. Statistics results/ laws are true only on an average: statistics as
science is not accurate as other science. Statistical laws are not
universally truer like laws of physics, chemistry etc. they are true only
on an average. statistics are not very precise accurate. Statistics are
concerned with those phenomena which are affected by multiplicity of
causes. It is not possible to study the effect of each of these factors
separately as we do under experimental methods. Due to this
limitation the conclusion arrived at are not perfectly accurate.
7. Statistics is only a means and not an end: the tools of statistics
are only a means to understand any given problem rather than a
method to solve any problem. there are other methods of studying a
problem like culture, religion, philosophy etc. statistics is only a
means not an end. It analyses the facts and throw light on real life
situation.
8. Statistical results are not always beyond doubt: stats deal with
measurable aspects of things and therefore can seldom give the
complete solution to problem. They provide a basis of judgement but
not the whole judgement.
9. Statistical results are only approximately correct: it is science of
estimates. It fails in the field of where perfect accuracy is desired
10. Homogeneity of data: for comparison purpose data should be
homogeneous and uniform. quantities measured in different units
cannot be compared. E.g.: since food grains and cloth are measured
in different units, we can simply compare their values in rupees but
not their quantities.
11. statistics can be misused: statistics can be misused by ignorant
and wrongly motivated person. Any person can misuse stats and
draw wrong conclusion. Statistical methods are dangerous tools in
the hands of non-experts. biggest limitation of statistics is that it
deals with figures which are innocent and don not bear on their face
the label of their quality. They can be easily manipulated and
distorted by dishonest or unskilled users for selfish motives.
Statistics neither proves nor disproves anything. It is merely a tool
which is rightly used may prove extremely useful but if misused may
 lead to wrong conclusion. In the words of working statistics are like
clay of which you can make a god or a devil as you please. According
to him science of stats is useful servant but only of great value those
who understand its proper use. Then example of wrong
interpretation. In India the percentage of death among sick person is
higher in hospital than at home was stated by a person who collected
information of deaths in hospitals and at home. This may lead to
conclusion that more person dies in hospital than at home due to
lack of proper treatment and care. But the investigation failed to face
into consideration the fact that in India only seriously ill persons are
hospitalized.

3. Define statistics? Explain importance and limitations.

Importance/uses/Scope of statistics:
 Statistics and business: a good businessman make a good sales
prediction keeping in view of all types of seasonal and market
variation. In modern business it is due to availability of data that
suitable policies can be followed in case of production, finance,
investment, marketing etc.
Some of the key areas of importance of statistics in business are as
follows:
 Market analysis: marketing research provide solution to various
problems involved in marketing goods, services or ideas. In this
context systematic collection, analysis and interpretation of marketing
data is done by using statistical methods, marketing decision involve
introduction of new products, reaction of consumers to prices,
effectiveness of advertisement company.
 Cash forecasting: financial analyst has to forecast cash requirement to
meet short term obligation like payment of salary, payment to supplier
etc statistics analysis helps in working out realistic cash forecasting.
 Finance: key financial ratio is worked out by using the balance sheet
and profit and loss account to know the financial health of an
enterprise comparative statistical analysis reveals the performance of
the company in the past years and emerging trends in the future. `
 Material management: by using appropriate statistical methods one
can maintain optimum inventory stock levels of raw material and
finished products and thus savings are made which has impact on
profit.
 Quality management: statistical principles from the basis of carrying
out quality assurances exercises. Raw material and other item are
checked for quality to meet customers’ needs and inspection of
finished product is done on sample basis to reduce complaint from
customers.
 Demand projections: short term and long-term demand projection are
required for the company products and services both for domestic and
international market. Statistical survey and analysis of the past data
relating to industry provide reliable sales and demand projection.
 Statistics in Management
A nation’s government runs on statistics. They use statistical
data to make their decisions regarding any number of things. Most
federal and provincial budgets are designed upon statistical data
because it’s the most accurate data available when estimating
expected expenditures and revenue.
Another great example of statistics in the government is figuring
out whether or not to raise the minimum wage due to a rise in the
cost of living. Statistical data gives the government the best idea
regarding whether or not the cost of living will continue to rise.
The under developed countries can grow only if they have sound
planning system. The problem like over population, unemployment,
lack of industrialization low rate of capital formation etc. can be solved
only with the help of statistical data/facts. We need planning at all
levels making good plan do not serve the purpose. Our plans must be
supported by adequate statistics. Therefore, sound planning should
be based on sound data. National income is produced but the
contribution of agriculture, industry, transport, trade and other
services can be known only if we collect data. This will also determine
how much funds to be allocated ton different sectors. All predictions
are possible only with the help of statistics.

 Statistics in Banking and Finance

Banks use statistics for a great number of the services they
offer. A bank works on the idea that someone will deposit their money
and not withdraw all of it later on. They earn their profit by lending
money to others with interest, and the money they use is the money
other people deposit.
Bankers use statistical approaches to estimate the number of
people who will be making deposits compared to the number of people
requesting loans. A great example of statistics used in banking is the
FDIC’s own quarterly publication called Statistics on Banking.
In the finance sector, statistical data facilitate decision-making.
For instance, a watch manufacturing company can use statistical
tools to determine the percentage of defective watches in every lot.
 At a macro level, it helps in understanding a country’s financial
state and measuring economic growth.
 At a micro-level, statistics helps analysts determine a company’s
business income, earnings, and revenue-generating capacity.
 Be it preparing budgets, financial forecasts, monitoring a company, or
a country’s performance, statistics is everywhere.

Limitation of statistics
12. Statistics does not study qualitative aspect: statistics are
numerical statement of facts. It can be applied only to such problems
that can be measured quantitatively. statistics cannot be used directly
for the study of qualitative characteristics such as honesty, beauty,
intelligence, health, culture etc. however it may be possible to analyse
the characteristics indirectly. E.g.: we can study intelligence of
students on the basis of marks secured by them in examination.
13. Statistics does not reveal entire study: statistical analysis
may focus on only certain aspects of the study and may not bring to
light the entire story. Eg: opposition in USA, to outsourcing jobs in
India is justified citing statistics on job losses. However, if the
demographic profile of USA is studied one finds that America is
actually heading for an era of shortage of personnel. a good
statistician must recognize the need to consider all facts and complete
story rather than rely on a few tools of statistical analysis.
14. No cause and effect relationship: statistics does not
necessarily bring the cause and effect relationship between various
parameters. The investigator needs to apply judgement to determine
the relationship between the parameters. E.g.: if sales and
advertisement expenditure of an organization is studied, it does not
tell that there cause and effect relationship between the two. If fact
regression techniques can be applied to find out what would be the
advertisement expenditure for a given figure of sales. This may not be
practical as sales does not directly cause impact on advertisement.
15. Statistics can be used by expert only: statistical technique is
not so simple to be used by any layman. The technique being
complicated in nature can be used only by experts knowing the
application of statistical methodologies Otherwise the result can be
misleading and dangerous.
16. Statistics does not deal with individual: stats deal only with
aggregates rather than individual items. A single or isolated figure
cannot be regarded as statistics. E.g.: an individual item like height of
a student in a class is 5.6 is not statistics, but if we say average
height of the class is 5.8 then it is statistics. In statistical methods we
deal with aggregates and not with a single figure.
17. Statistics results/ laws are true only on an average:
statistics as science is not accurate as other science. Statistical laws
are not universally truer like laws of physics, chemistry etc. they are
 true only on an average. statistics are not very precise accurate.
Statistics are concerned with those phenomena which are affected by
multiplicity of causes. It is not possible to study the effect of each of
these factors separately as we do under experimental methods. Due to
this limitation the conclusion arrived at are not perfectly accurate.
18. Statistics is only a means and not an end: the tools of
statistics are only a means to understand any given problem rather
than a method to solve any problem. there are other methods of
studying a problem like culture, religion, philosophy etc. statistics is
only a means not an end. It analyses the facts and throw light on real
life situation.
19. Statistical results are not always beyond doubt: stats deal
with measurable aspects of things and therefore can seldom give the
complete solution to problem. They provide a basis of judgement but
not the whole judgement.
20. Statistical results are only approximately correct: it is
science of estimates. It fails in the field of where perfect accuracy is
desired
21. Homogeneity of data: for comparison purpose data should be
homogeneous and uniform. quantities measured in different units
cannot be compared. E.g.: since food grains and cloth are measured
in different units, we can simply compare their values in rupees but
not their quantities.
22. statistics can be misused: statistics can be misused by ignorant
and wrongly motivated person. Any person can misuse stats and
draw wrong conclusion. Statistical methods are dangerous tools in
the hands of non-experts. biggest limitation of statistics is that it
deals with figures which are innocent and don not bear on their face
the label of their quality. They can be easily manipulated and
distorted by dishonest or unskilled users for selfish motives.
Statistics neither proves nor disproves anything. It is merely a tool
which is rightly used may prove extremely useful but if misused may
lead to wrong conclusion. In the words of working statistics are like
clay of which you can make a god or a devil as you please. According
to him science of stats is useful servant but only of great value those
who understand its proper use. Then example of wrong
interpretation. In India the percentage of death among sick person is
higher in hospital than at home was stated by a person who collected
information of deaths in hospitals and at home. This may lead to
conclusion that more person dies in hospital than at home due to
lack of proper treatment and care. But the investigation failed to face
into consideration the fact that in India only seriously ill persons are
hospitalized.
4. What is secondary data? Explain the secondary data
methods?
 Secondary data
Secondary data are opposite to primary data. They are collected and
published already (by some organization, for instance). They can be
used as a source of data and used by surveyors to collect data from
and conduct the analysis. Secondary data are impure in the sense
that they have undergone statistical treatment at least once.
Methods of secondary data collection:
 Official publications such as the Ministry of Finance, Statistical
Departments of the government, Federal Bureaus, Agricultural
Statistical boards, etc. Semi-official sources include State Bank,
Boards of Economic Enquiry, etc.
 Data published by Chambers of Commerce and trade
associations and boards.
 Articles in the newspaper, from journals and technical
publications.
5. Explain the scope of business statistics.
 Statistics and business: a good businessman make a good sales
prediction keeping in view of all types of seasonal and market
variation. In modern business it is due to availability of data that
suitable policies can be followed in case of production, finance,
investment, marketing etc.
Some of the key areas of importance of statistics in business are as
follows:
 Market analysis: marketing research provide solution to various
problems involved in marketing goods, services or ideas. In this
context systematic collection, analysis and interpretation of marketing
data is done by using statistical methods, marketing decision involve
introduction of new products, reaction of consumers to prices,
effectiveness of advertisement company.
 Cash forecasting: financial analyst has to forecast cash requirement to
meet short term obligation like payment of salary, payment to supplier
etc statistics analysis helps in working out realistic cash forecasting.
 Finance: key financial ratio is worked out by using the balance sheet
and profit and loss account to know the financial health of an
enterprise comparative statistical analysis reveals the performance of
the company in the past years and emerging trends in the future. `
 Material management: by using appropriate statistical methods one
can maintain optimum inventory stock levels of raw material and
 finished products and thus savings are made which has impact on
profit.
 Quality management: statistical principles from the basis of carrying
out quality assurances exercises. Raw material and other item are
checked for quality to meet customers’ needs and inspection of
finished product is done on sample basis to reduce complaint from
customers.
 Demand projections: short term and long-term demand projection are
required for the company products and services both for domestic and
international market. Statistical survey and analysis of the past data
relating to industry provide reliable sales and demand projection.

6. What do you mean by measures of central tendency?

Explain its measures
Measures of central tendency
A measure of central tendency (also referred to as measures of centre or
central location) is a summary measure that attempts to describe a whole
set of data with a single value that represents the middle or centre of its
distribution.
There are three main measures of central tendency:
 Mean
 Median
 Mode
Each of these measures describes a different indication of the typical or
central value in the distribution.

Mean
The mean is the sum of the value of each observation in a dataset divided by
the number of observations. This is also known as the arithmetic average.

Merits of arithmetic mean

 Arithmetic mean rigidly defined by algebraic formula
 It is easy to calculate and simple to understand
 It based on all observations and it can be regarded as representative
of the given data
 It is capable of being treated mathematically and hence it is widely
used in statistical analysis.
 Arithmetic mean can be computed even if the detailed distribution is
not known but some of the observation and number of the observation
are known.
 It is least affected by the fluctuation of sampling
Demerits of arithmetic mean
  It can neither be determined by inspection or by graphical location
 Arithmetic mean cannot be computed for qualitative data like data on
intelligence honesty and smoking habit etc.
 It is too much affected by extreme observations and hence it is not
adequately representing data consisting of some extreme point
 Arithmetic mean cannot be computed when class intervals have open
ends

Median
The median is the middle value in distribution when the values are
arranged in ascending or descending order.
The median divides the distribution in half (there are 50% of observations on
either side of the median value). In a distribution with an odd number of
observations, the median value is the middle value.
Merits of median
 Simplicity: - It is very simple measure of the central
tendency of the series. I the case of simple statistical
series, just a glance at the data is enough to locate the
median value.
 Free from the effect of extreme values: - Unlike arithmetic
mean, median value is not destroyed by the extreme values
of the series.
 Certainty: - Certainty is another merits is the median.
Median values are always a certain specific value in the
series.
 Real value: - Median value is real value and is a better
representative value of the series compared to arithmetic
mean average, the value of which may not exist in the
series at all.
 Graphic presentation: - Besides algebraic approach, the
median value can be estimated also through the graphic
presentation of data.
 Possible even when data is incomplete: - Median can be
estimated even in the case of certain incomplete series. It
is enough if one knows the number of items and the middle
item of the series.
Demerits of median:
Following are the various demerits of median:
 Lack of representative character: - Median fails to be a
representative measure in case of such series the different
values of which are wide apart from each other. Also,
median is of limited representative character as it is not
based on all the items in the series.
 Unrealistic: - When the median is located somewhere
between the two middle values, it remains only an
approximate measure, not a precise value.
 Lack of algebraic treatment: - Arithmetic mean is capable of
further algebraic treatment, but median is not. For
example, multiplying the median with the number of items
in the series will not give us the sum total of the values of
the series.

Mode
The mode is the most commonly occurring value in a distribution.
Merits of mode:
Following are the various merits of mode:
  Simple and popular: - Mode is very simple measure of central
tendency. Sometimes, just at the series is enough to locate the model
value. Because of its simplicity, it’s a very popular measure of the
central tendency.
 Less effect of marginal values: - Compared top mean, mode is less
affected by marginal values in the series. Mode is determined only by
the value with highest frequencies.
 Graphic presentation: - Mode can be located graphically, with the
help of histogram.
 Best representative: - Mode is that value which occurs most
frequently in the series. Accordingly, mode is the best representative
value of the series.
 No need of knowing all the items or frequencies: - The calculation
of mode does not require knowledge of all the items and frequencies of
a distribution. In simple series, it is enough if one knows the items
with highest frequencies in the distribution.

Demerits of mode:
Following are the various demerits of mode:
 Uncertain and vague: - Mode is an uncertain and vague measure of
the central tendency.
 Not capable of algebraic treatment: - Unlike mean, mode is not
capable of further algebraic treatment.
 Difficult: - With frequencies of all items are identical, it is difficult to
identify the modal value.
 Complex procedure of grouping: - Calculation of mode involves
cumbersome procedure of grouping the data. If the extent of grouping
changes, there will be a change in the model value.
 Ignores extreme marginal frequencies: - It ignores extreme marginal
frequencies. To that extent model value is not a representative value of
all the items in a series. Besides, one can question the representative
character of the model value as its calculation does not involve all
items of the series.

Geometric mean.
The geometric mean is an average or average that gives the central tendency
or typical value of a series of numbers by taking the product of the
numbers.
The main advantage of the geometric mean is:
 The calculation is based on all the terms of the sequence.
 Suitable for further mathematical analysis.
 Fluctuations in the sample do not affect the geometric mean.
 It gives more weight to small observations.
The disadvantage of the geometric mean is:
 One of the main drawbacks of the geometric mean is that if one of the
observations is negative, the geometric mean will be imaginary,
despite the other set of observations.
 Due to the complexity of the numbers, it is not easy for anyone other
than a mathematician to understand and calculate.

Harmonic Mean
The Harmonic Mean (HM) is defined as the reciprocal of the arithmetic mean
of the reciprocals of the observations. Harmonic mean gives less weightage
to the larger values and more weightage to the smaller values to balance the
values properly.

7. What do you mean by measures of dispersion? Explain

its measures?
Measure of dispersion
In a frequency distribution, though the values cluster around an
average, most of them differ from it. In some distributions, the difference
may be less, whereas in some others, it may be more. This property of
deviation of values from the average is called variation or dispersion

Types of Measures of Dispersion

There are two main types of dispersion methods in statistics which are:
 Absolute Measure of Dispersion
 Relative Measure of Dispersion

Absolute Measure of Dispersion

An absolute measure of dispersion contains the same unit as the original

data set. Absolute dispersion method expresses the variations in terms of
the average of deviations of observations like standard or means deviations.
It includes range, standard deviation, quartile deviation, etc.
The types of absolute measures of dispersion are:
1. Range: It is simply the difference between the maximum value and
the minimum value given in a data set. Example: 1, 3,5, 6, 7 => Range
= 7 -1= 6
2. Variance: Deduct the mean from each data in the set then squaring
each of them and adding each square and finally dividing them by the
total no of values in the data set is the variance. Variance
(σ2)=∑(X−μ)2/N
3. Standard Deviation: The square root of the variance is known as the
standard deviation i.e. S.D. = √σ.
 4. Quartiles and Quartile Deviation: The quartiles are values that
divide a list of numbers into quarters. The quartile deviation is half of
the distance between the third and the first quartile.
5. Mean and Mean Deviation: The average of numbers is known as the
mean and the arithmetic mean of the absolute deviations of the
observations from a measure of central tendency is known as the
mean deviation (also called mean absolute deviation).

Relative Measure of Dispersion

The relative measures of dispersion are used to compare the distribution of
two or more data sets. This measure compares values without units.
Common relative dispersion methods include:
1. Co-efficient of Range
2. Co-efficient of Variation
3. Co-efficient of Standard Deviation
4. Co-efficient of Quartile Deviation
5. Co-efficient of Mean Deviation

8. Difference between Primary data and Secondary data

 9. Meaning of Correlation & its types.

Correlation
Meaning: Correlation is a statistical technique to ascertain the association
or relationship between two or more variables. Correlation analysis is a
statistical technique to study the degree and direction of relationship
between two or more variables. A correlation coefficient is a statistical
measure of the degree to which changes to the value of one variable predict
change to the value of another. When the
fluctuation of one variable reliably predicts a similar fluctuation in another
variable,
there’s often a tendency to think that means that the change in one causes
the change
in the other.

Uses of correlations:
 Correlation analysis helps inn deriving precisely the degree and the
direction of
such relationship.
 The effect of correlation is to reduce the range of uncertainty of our
prediction.
 The prediction based on correlation analysis will be more reliable and
near to
reality.
 Correlation analysis contributes to the understanding of economic
behaviour,
aids in locating the critically important variables on which others
depend, may
reveal to the economist the connections by which disturbances spread
and
suggest to him the paths through which stabilizing farces may become
effective
 Economic theory and business studies show relationships between
variables
like price and quantity demanded advertising expenditure and sales
promotion
measures etc.
 The measure of coefficient of correlation is a relative measure of
change.

Types of Correlation:
Correlation is described or classified in several different ways. Three of the
most important are:
I. Positive and Negative
II. Simple, Partial and Multiple
III. Linear and non-linear
I. Positive and Negative Correlation: Whether correlation is positive
(direct) or negative (in-versa) would depend upon the direction of
change of the variable.
Positive Correlation: If both the variables vary in the same direction,
correlation is said to be positive. It means if one variable is increasing,
the other on an average is also increasing or if one variable is
decreasing, the other on an average is also deceasing, then the
correlation is said to be positive correlation. Negative Correlation: If
both the variables vary in opposite direction, the correlation is said to
be negative. If means if one variable increases, but the other variable
 decreases or if one variable decreases, but the other variable
increases, then the correlation is said to be negative correlation.
II. Simple, Partial and Multiple Correlation: The distinction between
simple, partial and multiple correlation is based upon the number of
variables studied.
Simple Correlation: When only two variables are studied, it is a case
of simple correlation. For example, when one studies relationship
between the marks secured by student and the attendance of student
in class, it is a problem of simple correlation.
Partial Correlation: In case of partial correlation one studies three or
more variables but considers only two variables to be influencing each
other and the effect of other influencing variables being held constant.
For example, in above example of relationship between student marks
and attendance, the other variable influencing such as effective
teaching of teacher, use of teaching aid like computer, smart board
etc. are assumed to be constant.
Multiple Correlation: When three or more variables are studied, it is
a case of multiple correlation. For example, in above example if study
covers the relationship between student marks, attendance of
students, effectiveness of teacher, use of teaching aids etc., it is a case
of multiple correlation.
III. Linear and Non-linear Correlation:
Depending upon the constancy of the ratio of change between the
variables, the correlation may be Linear or Non-linear Correlation.
Linear Correlation: If the amount of change in one variable bears a
constant ratio to the amount of change in the other variable, then
correlation is said to be linear. If such variables are plotted on a graph
paper all the plotted points would fall on a straight line.
Non-linear Correlation: If the amount of change in one variable does
not bear a constant ratio to the amount of change to the other
variable, then correlation is said to be non-linear. If such variables are
plotted on a graph, the points would fall on a curve and not on a
straight line.

10. Difference between correlation and regression

Basis for Correlation Regression
comparison
Meaning Correlation is a statistical Regression describes how an
measure which determines co- independent variable is
relationship or association of numerically related to the
two variables. dependent variable.
Usage To represent linear relationship To fit a best line and estimate
between two variables. one variable on the basis of
another variable.
Dependent and No difference Both variables are different.
Independent
variables
Indicates Correlation coefficient indicates Regression indicates the impact
the extent to which two of a unit change in the known
variables move together. variable (x) on the estimated
variable (y).
Objective To find a numerical value To estimate values of random
expressing the relationship variable on the basis of the
between variables. values of fixed variable.

11. Give meaning of time series analysis & its components.

Time Series Analysis

The collection of observations obtained through repeated
measurements over an interval of time is called time series analysis. The
time series analysis is used to get meaningful statistics and other data
characteristics. The ‘Time Series Analysis’ is distinct from other analyses
because the ordering of observations is natural in this process. It is distinct
from other analyses because the information typically relates to geographical
location. It is used for things that are constantly fluctuating with time.
Several industries use time series analysis because currency and sales are
constantly changing. Finance, retail and economics industries use this type
of analysis.
Some examples of time series analysis include:
 Measurements of rainfall
 Monitoring the heart rate (Electrocardiograph)
 Recording the readings of temperatures
 Recording the data of weather
 Analysis of stock prices
 Recording the quarterly sales
Components of Time Series Analysis
The reasons or forces that change the attributes of a time series are known
as the Components of Time Series.
The following are the components of time series −
 Trend
 Seasonal Variations
 Cyclical Variations
 Random or Irregular Movements

Trend
Trend shows a common tendency of data. It may move upward or
increase or go downward or decrease over a certain, long period of time. The
trend is a stable and long-term general tendency of movement of the data.
To be a trend, it is not mandatory for the data to move in the same direction.
The direction or movement may change over the long-term period but the
overall tendency should remain the same in a trend.
Some of the examples of trends include – the number of schools,
agricultural production, increase in population, etc. It is notable that the
trend may move upward, go downward or remain stable over different
sections of time. A Trend can be either linear or non-linear.

Seasonal Variations
Seasonal variations are changes in time series that occur in the short
term, usually within less than 12 months. They usually show the same
pattern of upward or downward growth in the 12-month period of the time
series. These variations are often recorded as hourly, daily, weekly,
quarterly, and monthly schedules.
Seasonal variations occur due to natural or manmade forces or
variations. The numerous seasons and manmade variations play a vital role
in seasonal variations.
Example − The crops depend on the season, the sales of A.C,s going
up during the summer and the use of umbrellas skyrocketing during the
rainy season - all of these are seasonal variations.
Seasonal variations can be clearly seen in some cases of man-made
conventions. The festivals, customs, fashions, habits, and various occasions,
such as weddings impact the seasonal variations. An increase in business
during the seasonal variation period should not be considered a better
business condition.

Cyclical Variations
Variations in time series that occur themselves for the span of more
than a year are called Cyclical Variations. Such oscillatory movements of
time serious often have a duration of more than a year. One complete period
of operation is called either a cycle or a ‘Business Cycle’.
Cyclic variations contain four phases - prosperity, recession,
depression, and recovery. It may be regular or non-periodic in nature.
Usually, cyclical variations occur due to a combination of two or more
economic forces and their interactions.

Random or Irregular Movements

There is another kind of movement that can be seen in the case of
time series. It is pure Irregular and Random Movement. As the name
suggests, no hypothesis or trend can be used to suggest irregular or random
movements in a time series. These outcomes are unforeseen, erratic,
unpredictable, and uncontrollable in nature.
 Earthquakes, war, famine, and floods are some examples of random
time series components.

12. Applications of Statistics on different fields.

Refer PPT…………………….