UGC NET STUDY MATERIALS

FINANCIAL ACCOUNTING AND MANAGEMENT



FINANCIAL & MANAGEMENT ACCOUNTING
MBA-I
MB0025

1-Mark

1. A business is an artificial entity distinct from its proprietors. This is based on which concept?
a) accrual concept                           b) money measurement concept
c) entity concept                             d) periodicity concept
Ans. (c)

2. ---------------  has more than one owner who have agreed to share profits of a business, carried on by all or any of them acting for all.
a)Corporate entity                            b)partnership firm
c)all business entity             d)sole proprietorship firm
      Ans. (b)

3. “Anticipate no profit but provide all possible losses”. Which concept says so?
a) the realization concept                 b) the matching concept
c) concept of prudence                   d)the accrual concept
Ans.(c)

4.The valuation of assets & liabilities principle depends on which concept ?
a)the cost concept                          b)money measurement concept
c)the periodicity concept                 d)the going concern concept
Ans . (d)

5.According to the income tax law,1961 , business unit should follow a uniform   
    accounting period i.e.:
a)fiscal year                                    b)calendar year
c)both of the years                          d)none.
Ans. (a)

6.A happening of consequence to an entity known as--------------
a)event                                           b)vouchers
c)books                                          d)journal
Ans. (a)

7.Which of the following is a type of vouchers ?
a)receipt voucher                             b)payment vouchers
c)journal vouchers                           d)all of these
Ans(d)



8. -----------------  is drawn to record all non-cash transactions and events.
a)receipt voucher                             b)payment vouchers
journal vouchers                              d) all of the above

Ans.( c)

9.FASB stands for:
a)financial accounting standard board
b)financial accounting state board
c)none of the above
Ans.(a)

10.Which of the following equation is correct ?
a) assets = liability + capital
b) liability =assets + capital
c) assets = capital – liability
d) none of the above
Ans. (a)

11.  ------------ is the residual interest of owners in assets over liabilities.
a)assets                              b)capital
c)capitalization                    d) liability
Ans. (b)

12.The income and expenses should be recognized as & when they are earned and incurred , irrespective of whether the money is received or paid in connection thereof.
a)accrual concept                b)cost concept
c)cash basis                       d)none of the above

Ans.(a)

13. If you pass in MBA. It will give you a great deal of satisfaction .this  expression can not be made in money term . This is because of which concept ?
a)accrual                             b)money measurement
c)cost concept                    d)business entity concept
Ans. (b)

14. -------------  is a book of first entry or prime entry .
a)primary book                    b)secondary book
c)cash book                        d)all of above

Ans. (a)

15. ------------- records credit sale of goods.
a) purchase day book
b) sale day book
c) journal day book
Ans. (b)

16. ------------ is a documentary evidence in writing , containing an unconditional
 order signed by the maker , directing a certain person to pay a certain sum of money    to the bearer of the instrument.
a)B/E                                  b)B/R
c)B/P                                  d)all

Ans. (a)

17. ------------- records goods returned to the suppliers.
a)return inward                     b)return outward
c)sales return                      d) none of the above
      Ans (b)

18.Ram commenced business with Rs. 15000.
The J.E for this is:
a) Ram’s a/c      Dr.                         b)Ram’s capital a/c  Dr.
          To cash a/c                                       To cash a/c
c) Cash a/c     Dr.                            d) Capital a/c            Dr.
          To Ram’s capital a/c                          To Ram’s a/c
Ans. ( c)


19.Withdrew cash from bank for private use Rs. 20,000.
The J.E is :       Cash a/c   Dr.
                                 To Bank a/c

a) true                                 b)false
Ans. (b)

20.-------------- records daily cash & bank receipt and payment.
a)cash book                        b)bank book
Ans. (a)

21. Cost sheet shows the total cost of  _______ only.
a. Purchase                               b. Production
c. Sales                                    d. All of above

Ans. (b)

22. PRIME Cost + Factory overhead =?
a. Factory Cost             b. Production Cost
c. Selling & Distribution             d. Total Cost    
Ans. (a)
23 A Cost Sheet with sales & profit data are called _________ .
a. Expert Cost Sheet                 b. Extended Cost Sheet
c. Cost Sheet production           d. None of above
Ans.(b)

24 _________ refers to the cost of materials, which become a major part of the finished product.
a. Direct labor cost                    b. Direct expense cost
c. Direct material cost    d. All of above
Ans.  (c )


25 Sunk cost is relevant cost.
a. True                          b. False

Ans (b)

26 Depreciation is a type of which cost.
a. Non-cash cost                       b. Incremental cost
c. Sunk cost                             d. Imputed cost

Ans. (a)

27. Opportunity cost is also known as opportunity lost.
a. True                          b. False

Ans (a)

28. A cost, which can be influenced by the action of a specified number of an undertaking, is called.
a. Controllable cost                   b. Non-Controllable cost
c. Incremental                            d. Detrimental cost

Ans. (c)

29. P/V ratio = C/S
a. True                                      b. False

Ans. (b)

30. Which of the following is correct.
a. C=S+VC                               b. C=F+P
c. S=C-VC                                d. All of the above

Ans. (b)

31. P/V stands for profit/value ratio.
a. True                                      b. False

Ans. (b)

32.-------------- will have separate accounts for each customer.
a)journal ledger                                     b)creditor ledger
c) debtor ledger                                    d)cash ledger

Ans(c)


33. In a B.E. chart, the horizontal axis (x-axis) represents _________ .
a. Cost of production                b. Output
c. Input                         d. Profit

Ans. (c)

34. Variable Cost = Marginal Cost.
a. True                          b. False

Ans. (a)

35. Sales - ____________ = Margin of safety
a. Break even point                   b. Break even sales
c. P/V ratio                               d. Profit

Ans.( b)

36. Which of the following heads is not an application of marginal costing.
a. Competition              b. Recession
c. Special customer                   d. None of above

Ans.(c )

37. The consolidated summary of various functional budget is called:
a. Functional budget      b. Flexible budget
c. Master budget           d. Fixed budget

Ans.(d)

38. F.C = P/V X S – F.
a. True                          b. False

Ans. (b)

39. Which of the following is correct.
a. P/V ratio = Change in profit X 100                  b. P/V ratio = C/S
                      Change in sales
c. P/C ratio = C/S                                                          d. All of the above

Ans.(a)

40. Graphical representation of cost & revenue showing their relations at different volumes of output is called _________.
a. Break even chart                    b. Break-even point
c. Margin of safety                    d. Profit/volume ratio

Ans. (d)

  1. Main ledger is type of  secondary book.
a)true                                  b)false

Ans. (b)

  1. Subsidiary ledger is:
a) general ledger
b)debtor ledger
c) creditor ledger
d) all of the above
Ans. (b)

43.   A formal record of a particular type of transaction is known as:
   a. Ledger                                     b. Account
   c. Posting                                    d. Balancing
Ans.(d)

44.   Trail Balance is a part of book of Accounts.
a. True                                            b. False
Ans.(a)

45.    The purpose of trail balance is to:
a. Check the arithmetical accuracy of ledger balances.
b. Have an overview of the operations of the business as on a particular date.
c. Both a & b.
d. None of above.
Ans.(c)

46.   ________ is a separate statement proposed to test the accuracy of the ledger balances.
a. Final Accounts                            b. Trail Balance
c. Journal Entries                            d. Balance Sheet
Ans.(a)

47.  “ The amount at any given volume of output by which the aggregate costs are changes if the volume of output is increased or decreased by one unit” is called:
a. Absorption                                  b. Marginal Costing
c. Variable Costing              d. C.V.P analysis

Ans.(a)

48. The establishment of budget relating responsibilities of executives to the requirements of a policy and continuous comparison of actual with budgeted result is called:
a. Budget                                        b. Budgeting system
c. Budgetary control                        d. All of the above

Ans.(c )

49. Fixed and flexible budgets are divided according to which category.
a. Scope                             b. Efficiency
c. Period                             d. None of the above
Ans.(a)

50. __________ is the target of each section of a organization.
a. Cost                                           b. Profit
c. Budget                                        d. All of the above
Ans.(a)

51. Fund may be interpreted in which ways:
a. Cash                                           b. Total Current assets
c. Net working capital                      d. All of above
Ans.(d)

52. Fund flow statement is also known as:
a. Fund statement                     b. Statement of source & application of fund
c. Inflow & outflow of fund        d. All of above
Ans.(d)

53. The term fund means.
a. Gross working capital            b. Net working capital
c. Net working capital                d. All of above

Ans.(d)

54. According to _________, the FFS describe the sources from which additional funds were derived and the uses to which these funds are put.
a. Robert Anthony                     b. None of above
c. ICAI, India                             d. None of above
Ans. (b)

55. Fund flow statement reveals the inflow and outflow of cash during a particular period.
a. True                                      b. False
Ans.(a)

56. Which of the following is the use of CFS.
a. It helps in short term financial decision relating to liquidity.
b. It explain the reasons for low cash balances.
c. It shows source & uses of cash.
d. All of above.

Ans.(d)

57 Cash flow is also prepared in statement form.
a. True                                      b. False
Ans.(b)

58. Fund flow statement is prepared to explain the reasons for low cash balance.
a. True                                      b. False
Ans.(a)

59. CFO = Increase in C.A + Increase in C.L.
a. True                          b. False 
Ans.(b)


2-Marks

Q. If:  share – capital – 1,60,000
            general reserves – 60,000
            profit & loss A/c – 1,00,000
            loan @ 15% interest – 2,00,000
            sales for the yr. – 5,60,000
            tax paid -               40,000
Profit for the current year after Interest & tax – 80,000
1. Debt – Equity ratio is:
a. 3,20,000                                b. 2,20,000
c. 1,80,000                                d. 2,60,000
Ans.(c)

2. Interest coverage ratio is:

a. 4 times                                  b. 5 times
c. 6 times                                  d. 3 times
Ans. (c )

3. Return coverage ratio is:

a. 28.9%                                   b. 5 times
c. 6 times                                  d. 3 times
Ans.(b)

4. Capital turnover ratio is:
a. 1.50 times                             b. 1.08 times
c. 1.80 times                             d. 2.02 times
Ans.(c )


5. The sale accounting is under cast by Rs 15,000. This could be rectify as:
        
Sales Account


 


                                                  By rectification                        15000
  
a. True                                            b. False

Ans.(a)

6. Calculate B.E.P from the following figures.
TS = Rs 50,00,000                     VC = Rs 2,75,000
N.P.= Rs 1,08,000                     BEP= ?

a. Rs. 2,30,000              b. Rs. 2,60,000
c. Rs. 3,00,000              d. Rs. 3,30,000
Ans.(a)


7. ------------- records credit purchases of traded goods and ------------- records                    
      credit sale of traded goods.
a)       goods return , goods purchased
b)      purchase day book , sale day book
c)       purchase return , sales return
d)       sales day book , purchase day book
Ans.(b)

8. State in which journal the following items would be recorded
A) cash purchase of goods 1)purchase
B) credit sale of goods                   2)journal
C) credit sale of  furniture     3)sale

a)       A,1 ; B,3 ; C,2
b)      A,2 ; B,3 ; C,3
c)       A,1 ; B,2 ; C,3
Ans.(b)

9. For financial accounting the auditing is________ & for management accounting thr auditing is _________.
a)  rigid, flexible                                    b) voluntary, legal
c) compulsory, voluntary                       d)objective ,subjective
Ans.(c )

10.interest accrued on fixed deposit of  Rs. 20000 at 12% simple interest on 31-12-07, not yet received . the entry is:
a) Income a/c                Dr.        24000
            To outstanding income a/c         24000

b) Outstanding income a/c         Dr         24000
               To interest on FD a/c                          24000

d)                                          none of above
Ans. (b)

11.In ______________ method, depreciation is calculated on cost of the asset and in _________ method depreciation is charged on the reducing balance of the book value  assets.
a)       Diminishing balance, fixed installment
b)      Reducing balance, fixed installment,
c)       Fixed installment, diminishing balance
d)      All of above
Ans.(c )

12.capital is_________ when it is withdrawn & is ___________ when deposited.
a)       Debited, credited
b)      Debited, debited,
c)       Credited, debited
d)      Credited, credited


13. _______, _________ and ___________ are the turn used in the science of financial accounting.

  1. Book keeping, journal, ledgers
  2. Book keeping, accounting, accountancy
  3. Journal, ledger, final accounts
  4. All of the above

Ans. (b)

14. Which of the following statement is not true:

i. Purchase return take place when the goods bought are not sold as for the specification.
ii. Debit note is a document to slow the supplier account being debited

  1. Both I and ii
  2. Only I
  3. Only ii
  4. Neither I & ii

Ans. (d)

15. DER compares _________ with ________.

  1. Debenturer & Reserves
  2. Debt & Equity
  3. Current assets & current liabilities
  4. Redeemable & irredeemable

Ans. (b)

16. Which of the following statement are true.

i. Increase in current assets will increase working capital 
ii. Decrease in current liabilities will decrease working capital

  1. Both i & ii
  2. Only I
  3. Only ii
  4. Neither I & ii

Ans. (b)

17. The WDV of a machinery at the beginning and at the end were Rs. 2,00,000 and 1,75,000. An old machine whose written down value was Rs. 12,000 was sold for Rs. 6,500. Rs. 3200 depreciation was charged during the current year. The purchase price is :

  1. Rs. 20,000
  2. Rs. 19,000
  3. Rs. 1,68,000
  4. Rs. 1,56,000

Ans. (b)

18. Calculate the selling price if marginal cost is Rs. 2,400 and MCSR is 20%.

  1. Rs. 5,000
  2. Rs. 4,000
  3. Rs. 3,000
  4. Rs. 2,000

Ans. (c)

19. __________ activities are the principal revenue producing activities of the enterprise & other activities that are not investing financing activities

  1. Financial
  2. Operating
  3. Investing
  4. None of the above

Ans. (b)]

20. If the depreciation value is not given, it has to be found out as:

Opening balance of fixed assets + ____________ - ___________ - closing balance of fixed assets

  1. Purchase, direct expenses
  2. Purchases, fixed assets sold
  3. Fixed assets sold, sales
  4. Written of value, direct expenses

Ans. (b)




4-Marks


1. Calculate stock turnover ratio:
if opening stock = 75000, closing stock = 1,00,000
Credit sales = 2,00,000, cash sales = Rs. 50,000
Gross profit is 25%, STR is :

  1. 2 times
  2. 3 times
  3. 2.8 times
  4. 2.1 times

Ans. (d)

2. Journal proper contain which of the following aspects:

  1. Opening journal entries
  2. Closing journal entries
  3. Adjusting entries
  4. Rectification entries
  5. Transferring entries
  6. Credit purchase of assets & sale of assets
  7. Withdrawal of goods by the proprietor for his personal use
  8. Loss of goods due to natural causes

  1. a, c, d, e, f
  2. a, b, c, d
  3. d, e, f, g
  4. All from a-h

Ans. (d)

3. Match the following –

I. Liquidity ratio                                                             I. Gross profit, net profit
II. Solvency ratio                                                           II. Current ratio, liquidity ratio
III. Activity ratio                                                 III. Debt equity ratio
IV. Profitability ratio                                           IV. Stock turn-over ratio

  1. I-I, II-II, III-IV, IV-III
  2. I-II, II-III, III-IV, IV-I
  3. I-II, II-IV, III-III, IV-I
  4. I-IV, II-III, III-I, IV-II

Ans. (b)

4. Which of the following statement:

i. Goods taken by the proprietor personal use are credited to sales account                   
ii. Balance-sheet is an account because it is included in the scope of final accounts iii. Stock at the end, if appear in the trial balance is taken only to the balance-sheet
iv. Salary paid in advance is not an expense because it neither reduces assets not increases liabilities

  1. i, iii, iv
  2. I, ii
  3. Ii, iii
  4. Iii, iv

Ans. (d)

5. The increase in working capital is:

  1. 26,000
  2. 20,000
  3. 19,000
  4. 21,000

Ans. (d)

6. Which of the following are the characteristics of fund flow statement:

i. No opening or closing balances are recorded
ii. It is prepared on the basis of ledger principle
iii. “To” and “By” are indicated
iv. It is rigid
v. Only cash receipt & payments are recorded
vi. It is related with accrual basis

  1. i, iii, iv, v
  2. I, ii, iv, vi
  3. I, iii, iv
  4. I, iii, vi

Ans. (d)

7. Net cash loan for operating activities is –

  1. Rs. 10,600
  2. Rs. 65,400
  3. Rs. 67,400
  4. Rs. 60,100

Ans. (c)

8. Which of the following statement does not match with the concerned answer:

1. Error of omission can be detected only after a careful review of ledger balance of previous year - True
2. Error of principle affects the value of revenue & capital items – False
3. It is very difficult to find out the compensating errors – False
4. Error of commission affects trial balance – True

  1. 1, 2, 3
  2. 2, 3
  3. 2, 3, 4
  4. 1, 3

Ans. (c)

9. The liquid Ratio is:

  1. 1:2
  2. 2:1
  3. 1:1
  4. 2:3

Ans. (c)

10. Debt equity ratio is:

  1. 1:2
  2. 0.75%
  3. 2:1
  4. 1:0.75

Ans. (b)

11. Capital gearing ratio is:

  1. 1:1
  2. 1:2
  3. 2:1
  4. 0.7:1

Ans. (a)

12. Match the following –

A.
I. According to ________ concept, revenue is considered as being earned on the date on which it is realized.
II. According to _________ principle, insignificant facts, which do not influence any decisions of the investors or any interested group need not communicated
III. According to _______ concept, the cost of applying a principle should not be more than the benefits derived from.
IV. According to _______ concept, Revenue earned during a period is compared with the expenditure incurred to earn that income.

B.
I-Making cost & Revenue
II. Modifying
III. Income recognition
IV. Materially

  1. I-I, II-II, III-IV, IV-III
  2. I-III, II-IV, III-II, IV-I
  3. I-II, II-III, III-IV, IV-I
  4. None of the above

Ans. (b)

13. The Net Profit during the year is:

  1. 2,10,000
  2. 1,11,800
  3. 95,800
  4. 1,15,800

Ans. (d)

14. Which of the following statements are not correct:

  1. S-V = F+P
ii. MUV = (SQ*SR) – (AQ*AP)
iii. Working capital = Current liabilities – Current Assets
iv. Contribution = MCSR / * 100
v. Cost variance  Standard cost – actual cost

  1. ii, iii, iv, v
  2. I, ii, iii
  3. Iii, iv
  4. Ii, iii, iv

Ans. (d)

15. Which of the following A/c are debited:

1. Drawing A/c
2. Bills payable a/c
3. Debtors A/c
4. Outstanding income A/c
5. Loss on sale income A/c
6. Pre received income A/c
7. Reserve for future expenses or losses
8. Cash at bank

  1. 3, 5, 6, 7, 8
  2. 1, 2, 4, 5, 8
  3. 1, 3, 4, 5, 8
  4. 1, 3, 5, 6, 7, 8

Ans. (c)

                                     

STATISTICS FOR MANAGEMENT


MB0024
MBA-I
STATISTICS FOR MANAGEMENT

SAMPLE PAPER


1. A study of characteristics of units of a population by using statistical device and techniques is called:

  1. Statistical Investigation
  2. Statistical Survey
  3. Statistical Carriers                              
  4. Conclusion Collection
Ans: A

2. Classification is a systematic grouping of the units according to their common characteristics. So units having common characteristics are grouped together each of these groups is called.
  1. Class
  2. Group
  3. Logically arranged     
  4. Instructions
Ans: A

3. Two cards are drawn without replacement from well stuffed pack of 52 cards. Find the probability that one is a space and other is a queen of red color.

1.      1/50                            
2.      1/51                
3.      1/49
4.      1/52
Ans:B
4. Standard error helps us in:
a. Testing of hypothesis
b. Constructing confidence interval for the statistics
c. Giving reliability measure for the statistic by its reciprocal value
d. All of the above
Ans: D

5. A variable which assumes values 1 and 0 with probabilities p and q = 1-p, is called
a. Binomial distribution
b. Bernoulli distribution
c. Poisson distribution
d. None of the above
Ans: B

6. Height of six students is 163, 173, 168, 156, 162 and 165 cms. Find the arithmetic mean.

a.       164.5 cms       
b.      164     
c.       166     
d.      165.1
Ans: A

7. Two or more events are said to be ________ if the occurrence of one prevents the occurrence of other events.
a. Mutually exclusive events
b. Equi-probable events
c. Independent events
d. Both a and b
Ans: A

8. In a one day cricket match, a bowler bowls 8 over. He gives away 3, 5, 12, 0, 4, 1, 3, 7 runs in these over. Find the mean run rate per over.

a.       43.75
b.      4.375
c.       43.7    
d.      437.5

Ans:B

9. Under this approach the investigator or Researcher assigns probability to the events either from his experience or from past records.
a. Axiomatic Approach
b. Subjective Approach
c. Empirical Approach
d. Statistical Approach
Ans: B

10. Classical probability is also called a
  1. Exhaustive
  2. Priority
  3. Dependent
  4. Event
Ans: B

11. Index number represent the relative changes are
  1. Expressed in Percentage
  2. Relative measure.
  3. Expressed in numbers
  4. Average
Ans: C

12. Probability plays an important role in;
a. Setting of goals
b. Planning
c. Decision making
d. Budgeting
Ans: C

13. The probability of the two or more independent events occurring together or in succession in the product of their marginal probability.

P (AB) = P (A) x P (B)

  1. Joint   
  2. Marginal
  3. Conditional    
  4. Subjective
Ans: C

14. State whether the given statements are true or not:
 Event B and A are statistically independent the conditional probability can be written as
P (B/A) = P (B)
Or
P (A/B) = P/A      
  1. True
  2. False
  3. Cannot say
  4. None of the above
Ans: A

15. It is a range of values used to estimate a population parameter:
a. Interval estimate
b. Point estimate
c. Population proportion
d. None of the above
Ans: A

16. An operation that results in a definite outcome is called an:
a. Sample experiment
b. Experiment
c. Random experiment
d. All of the above
Ans; B
17.  The Probability of r successes in n trial is given as:
  n!
r!(n-r)!       P r   q n-r                        (T/F) 

a. False
b. True
c. Incomplete
d. None of the above
Ans: B

18. Classification is a systematic grouping of the units according to their common characteristics. So units having common characteristics are grouped together, each of these groups is called:
a. Class
b. Group
c. Logically arranged
d. Instructions
Ans: A

19. __________ handles uncertainty systematically and scientifically.
a. Decision-making
b. Probability Theory
c. Ogive analysis
d. Bay’s Probability
Ans: B

20. The following is the frequency distribution of wage of workers of a factory. Find the arithmetic mean.

(a)    129
(b)   128
(c)    120
(d)   121
Ans: A

21. The mean (x) of marks scored by 30 girls of a class is 44%. The mean for 50 boys is 42%. Find the mean for whole class.
a.       40.27%           
b.      41.27%                       
c.       42.75%
d.      42.7%
Ans: C

22. A study of characteristics of units of a population by using statistical device and techniques is called:
a. Statistical investigation
b. Statistical survey
c. Statistical Carriers
d. Conclusion Collection
Ans: A

23. It is defined as the sum of all values divided by number of values:
a. Mean
b. Median
c. Mode
d. Probability
Ans: A

24. Find the geometric mean of 1, 4, 16.

a.       3
b.      4                     
c.       9         
d.      16
Ans: B

25. The frequency distribution is represented by a set of rectangular bars with area proportional to class frequency:
a. Histogram
b. Bar graph
c. Frequency distribution
d. Frequency polygon
Ans: A

  1. Find the geometric mean of 1.03, 1.04, 1.06, 1.08.

a.       1.040
b.      1.070
c.       1.40
d.      1.70
Ans: A

27. Graphs used for frequency distribution are:
a. Histogram
b. Frequency polygon
c. Frequency curve
d. All of the above
Ans: D

28. Find the formula of Range:

a.       R = H-L                           
b.      R = H-2L 
c.       R = 2H-L 
d.      R = H-2L
Ans:A

29. If n > _____, then we do not apply z-test unless population S.D. is known.
a.25
b.30
c. 45
d.50
Ans: B

  1. Describe different type of probability.
a.       Classical approach
b.      Relative frequency approach
c.       Subjective approach
d.      All of the above
Ans:D

31. State whether it is true or not:
There is no single standard or universal level of significance for testing Hypothesis.

a.       False
b.      True
c.       Cannot say
d.      None of the above
Ans: B

32. Population having a stated or ltd size.

a)      Finite population              
b)      Infinite population           
c)      Judgment 
d)     Parametric
Ans:A

33. The standard deviation of the distribution of sample static is called:
a. Standard size
b. Standard error
c. Standard sample
d. Standard index
Ans: B




  1. A sampling method in which a sample is drawn in such a way that it is systematically spread over all the elements of population.

    1. Stratified sampling     
    2. Systematic sampling
    3. Sampling error
    4. Sample
Ans: A

35. In this method several varieties of a certain type of commodity under study are used.

a. Explicit Method
b. Implicit Method
c. Computation Method
d. Index method
Ans: A

36. A method of determines correction when the data are not available in numerical form and as a n attractive method of ranking is used.

a.       Rank correction                      
b.      Linear relationship                 
c.       Scatter diagram          
d.      None of the above
Ans: A

37. Movements that occur usually in brief periods of time, without any pattern and are unpredictable in nature.
a. Cyclic Variations
b. Random Variations
c. Seasonal Variations
d. None of the above
Ans: B

38. Analysis of statistical data in concerned with the question of whether there is a relationship between two variables.

a.       Co-efficient of variables  
b.      Correlation analysis          
c.       Inverse analysis    
d.      None of the above
e.       All of the above
Ans: B



39. Ogives is basically:

a. Frequency curve
b. Frequency polygon
c. Cumulative frequency curves
d. None of the above
Ans: C

40. The probability that we associate with an interval estimate is called the
a. Interval estimates
b. Confidence level
c. Random probability
d. Estimation probability
Ans: B


2-marks

  1. Define it.

a.       Mode = 3 Median – 2 Mean  
b.      Mode = Median – 3 Mean
c.       Mode = 3 Mean – 2 Mode
d.      None of above
Ans: A

  1. Suppose the probability of dialing a wrong number is 0.05. Then, what is the probability of dialing exactly 3 wrong numbers in 100 dials?

a.       0.14
b.      0.15                            
c.       0.4                  
d.      0.16
Ans:A

  1. Suppose there are 8 persons from whom we have to select samples of size 3. How many samples can be selected?

a.       56                               
b.      57       
c.       53                   
d.      99
Ans:A

  1. A group of 10 students are to be divided into 2 groups of 5 each and seated two tables. How many different ways are there of dividing the 10 students?
a.       200                             
b.      252                 
c.       201                 
d.      250
Ans: A

  1. At a dinner party 12 guests had been invited. They are to be divided into 2 groups of 6 each and seated at 2 tables. In how many different who is these guests can be seated?

a.       900
b.      920     
c.       924     
d.      921
Ans:A


  1. Data arranged in relation to time. Such data have four components trend, cycle, and seasonal, irregular movements.
a.       Time series
b.      Seasonal index           
c.       Forecasting     
d.      None of the above 
Ans:A

  1. An index that links up different fixed base indices to obtain a long comparable series.
a.       Chain index number   
b.      Index number             
c.       Defaulting number     
d.      All of the above
Ans:A

  1. An index that measures the change in value between two or more periods of time.

a.       Value index
b.      Weighted index         
c.       Relative method
d.      All of the above
Ans:A

  1. Index that compares the change in the price or quantity of a single item between two or more periods of time.

a.       Quantity index                       
b.      Simple index number 
c.       Price index
d.      None of the above


Ans:B


50.  Karl Pearson coefficient of correlation.
a.   r =        Σ x y                b.  r =         x y 
              √ Σx2 – y2                           √ Σx2 – Σ2                  


c.   r =             x .y                         d.   r =                  x y 
√ (Σx)2 – (Σy)2                                     √ Σx2

Ans: A

51. Rank Correlation
a.)  R = 1 _ 6ΣD2                           or                     1 _ 6ΣD2
                N (N2-1)                                                                N3-N

b.)    R = 1 + 6ΣD2
                                    N(N2-1)

c.)     R =  1 _  ΣD2
                     N2-1

d.)    R = 1 _  ΣD2
                   N3-N

Ans: A

52. A method that uses past data to estimate the relationship between two variables.

a.       Regression                        
b.      Regression line     
c.       Slope                    
d.      Standard line
Ans:A

53. A nonparametric test that a concerned with the degrees of agreement between a set of observed ranks (Sample Values) and a theoretical frequency distribution.

a.       Kolmogorav – Smirnev test         
b.      Kurskal – wall is test
c.       Mann – Whitney U test   
d.      None of the above
Ans: A
           
54. Calculate the variance and co-efficient of variation.

a. x= √ Σfd2/N-(Σfd/N)2  xi ,  C.V = s/x                     b. x= √ (Σfd)2/N-Σfd/N xi


 

c. x = √ Σfd/N-Σfd/N xi                                              d. x= √ Σf2/N- Σfd2/N xi

Ans: A


55. For continuous frequency distribution the median is:

a. M= 1 + [[N/2-m] x c]                                              b. M= L [N/2-m x c]
                            f                                                                              f

c. M= L+ [N/2-M x C]                                                d. None of the above
Ans:A
                          f

  1. For the mode the formula as:

a. Z= 1+ [(f-f1) x c]                                                    b. Z= 1+ [f-f1 x c]
            2f-f1 x c                                                                            f1 f1-f2

c. Z= 1+ [(f-f1) x c]                                                    d. Z= 1+ [(f-f1) x c]
2f1–f1-f2                                                                           2f-f1-f2
Ans:A

  1. A bag contains 5 white, 7 red and 4 black balls. Four balls are drawn one by one with replacement, what is the probability that none is white?
a.       11/16              
b.      (11/16)4                          
c.       16/11              
d.        [ 11/16]2
Ans:B

  1. A class consists of 80 students: 25 of them are girls and 55 boys: 10 of them are rich and the remaining poor; 20 of them are four complexioned. What is the probability of selecting a fair complexioned rich girl?

a.       4/512                                
b.      6/512                    
c.       5/512
d.      2/512
Ans: C

  1. Two dice are thrown. Find the probability of getting an odd number on the first dice and a multiple of 3 on the other.
a.       1/2                                    
b.      1/6
c.       1/3            
d.      6/1
Ans:B

  1. The odds against A solving a certain problem are 4 to 3 and the odds in favor of B the same problem are 1 to 5. Find the probability that the problem will be solved.

a. 16/21    
b. 16/20                
c. 15/21    
d. 14/21
Ans: A


4-MARKS

61. Match the following:
1. Sampling error                           i. It is also known as inherent error and cannot be avoided. It is not worth to eliminate them completely.
2. Non-sampling error                   ii. They are attributed to factors that can be controlled and eliminated by suitable actions.
3. Biased errors                             iii. It arises in both census and sampling method.
4. Unbiased errors                         iv. The errors that are due to over-estimate and under estimate such that they are equal.

    1. 1-I, 2-ii, 3-iii, 4-iv
    2. 1-ii, 2-I, 3-iv, 4-iii
    3. 1-iii, 2-ii, 3-iv, 4-i
    4. 1-iv, 2-iii, 3-ii, 4-i
Ans: A

62. Fishers ‘Ideal’ Method Define which is correct.

a. Po1 = √ Σp1qo/Σpoqo X Σp1q1/Σpoq1 X 100        b. Po1 = √ Σpo/Σqo X Σpo/Σqo X 100

c. Po1 =   √ Σpoq1/Σqo X Σpo/Σqo X 100                  d. Po1 = √ Σpoqo/Σpoqo X Σp1q1/Σpo X 100
Ans: A

63. Collection of primary data cannot be done by anyone of the following methods:
1. Indirect oral interview
2. Information through agencies
3. Direct personal observation
4. Investigation is confidential
5. Accuracy of data is important

e.       1, 2, 3
f.       1, 3, 4
g.      2, 5
h.      4, 5
Ans: D

64. Match the following:

1. Mutually exclusive                          i. there should not be overlapping
2. Suitability                                        ii. Similar units are placed in the same class
3. Homogeneity                                  iii. It should be suitable to objectives of survey
4. Revealing                                        iv. Should bring out essential features of the collected data             
5. Unambiguous                                  v. It should not lead to any confusion.

  1. 1-v, 2-iii, 3-iv, 4-I, 5-ii
  2. 1-I, 2-iii, 3-ii, 4-iv, 5-v
  3. 1-I, 2-ii, 3-iii, 4-iv, 5-v
  4. None of the above

Ans: C

65. Find the probability that X=3 for a Binomial Distribution whose mean is 3 and variance is
a. 1672/1792
b. 1795/1800
c. 1792/6591
d. 6561/1792
Ans: C

66. Find P(x=2), given mean and S.D. of the binomial distribution are 4 and √3.
a. 16c2 (0.73)14 (0.25)2
b. 16c3 (0.75)14 (0.25)2
c. 16c2 (0.25)2 (0.75)14
d. 16c2 (0.75)14(0.25)2
Ans: D

67. State whether the following statements are true:
a. Mean of binomial distribution in npq.
b. Quartile Deviation of normal distribution is 4/5 σ.
c. Mean, median and mode coincide in a normal distribution.
d. “Y” is a Poisson variate if P>0.1 and n>10.
e. “n” and “p” are the parameters of Binomial Distribution.

  1. a, b, e
  2. c, e
  3. c, d, e
  4. a, b, c, d, e
Ans: B

68. Suppose 2 house in thousand catches fire in a year and there are 2000 houses in a village, what is the probability. Then
i) None ii) at least one iii) not more than 2 house catches fire


a)i. 0.01832
ii. 0.98168
iii. 0.2366

b)      i. 0.01832
ii. 0.96168
iii. 0.2388
c)      i. 0.01832
ii. 0.98168
iii. 0.2566
d)     i. 0.01832
ii. 0.98166
iii. 0.2366

Ans: A

69. State following are not true:

a.       Populations from which the samples are not selected are not normally distributed.
b.      The effect of various components are not additive.
c.       Analysis variance is useful to test several means.
d.      Another tool applied to test several means in z/t test.

  1. a, b, c, d
  2. e only
  3. a, c, d
  4. a, b, d
Ans: D

70. Find Karl Pearson’s Correlation Coefficient given:
X
20
16
12
8
4
Y
22
14
4
12
8


  1. 0.79
  2. 0.76
  3. 0.80
  4. 0.70
Ans: D

71. Calculate the Spearman’s Rank Correlation Coefficient between the series A and B given below:
A
57
59
62
63
64
65
55
58
57
B
113
117
126
126
130
129
111
116
112
  1. 0.976
  2. 0.967
  3. 0.797
  4. 0.697
Ans:B

72. In Regression Coefficient which statements are true:
a. It has unit attached to it.
b. There is no such nonsense regression.
c. It is not meant for estimation
d. rxy = ryx

  1. only a
  2. c, d only
  3. a, b, c only
  4. a, b only
Ans: D

73. State whether the given statements are True or not:

  1. Tabulation is a systematic arrangement of classified data in row and columns of a table.
  2. A frequency distribution in which class intervals are considered is a continuous frequency distribution.
  3. Each class interval is specified by two limits which are called class limits.
  4. A cumulative frequency curve is called ogive.
  1. 1-F, 2-T, 3-F, 4-T
  2. 1-T, 2-T, 3-T, 4-T
  3. 1-F, 2-F, 3-T, 4-T
  4. 1-F, 2-F, 3-T, 4-F
Ans: B

74. Write the following steps in correct sequence:

  1. State the level of significance. This gives you the tabulated normal/t – values.
  2. Calculate the required values for the test.
  3. Conduct the test.
  4. State Null Hypothesis (H0) and alternate hypothesis (H1).
  5. Select the appropriate test from the list.
  6. Draw conclusion.

  1. 2, 3, 1, 5, 4, 6
  2. 1, 2, 3, 5, 4, 6
  3. 4, 1, 5, 2, 3, 6
  4. All of the above
Ans: C
75. Three dice are thrown simultaneously. Find the probability that:


(i) All of them show the same face
      a.         1          b.         1          c.         1          d.         1
                  36                    6                      5                      4
Ans: A      
(ii) All show distinct bases.
      a          5          b          4          c          5          d          9
                  9                      9                      5                      9
Ans: A

(iii) Two of them show the same face.
                        a          5          b          6          c          5          d          10       
12                      10                    12                    13
                 Ans: A


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