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Chapter 9: Applied Statistics — Online MCQ Test

BUSINESS MATHS AND STATISTICS · CLASS 12th · Tamil Nadu State Board
Practice Chapter 9: Applied Statistics with a free chapter-wise online MCQ test. This chapter covers: Focusing on economic data analytics this chapter details time series analysis index numbers and statistical quality control. Students compute trend values seasonal indices price qu.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 9: Applied Statistics — Important Questions & Answers

A sudden decline in sales of a company due to an unprecedented flood is an example of which component of a time series?
  • A. Secular trend
  • B. Seasonal variation
  • C. Cyclical variation
  • D. Irregular variation
Answer: D. Irregular variation
Irregular or random variations are caused by unpredictable, sudden, non-recurring events like floods, earthquakes, strikes, or fires.
Fisher's Price Index Number is called the 'Ideal Index' because it satisfies which of the following tests?
  • A. Only the Time Reversal Test
  • B. Only the Factor Reversal Test
  • C. Both the Time Reversal and Factor Reversal Tests
  • D. Neither the Time Reversal nor the Factor Reversal Test
Answer: C. Both the Time Reversal and Factor Reversal Tests
Fisher's index is theoretically sound as it satisfies both the Time Reversal Test (TRT) and the Factor Reversal Test (FRT).
In a 4-yearly moving average method of trend determination, why is 'centering' performed?
  • A. To make the trend values perfectly linear
  • B. To synchronize and align the trend values with the original time periods
  • C. To eliminate irregular variations completely
  • D. To ensure the sum of residuals equals zero
Answer: B. To synchronize and align the trend values with the original time periods
For an even-period moving average (like 4-yearly), the averages lie between two periods. Centering aligns the averages with actual years.
Given the following annual data of production: N = 5, ∑Y = 150, ∑X² = 10, and ∑XY = 20, where X represents deviations from the mid-year (2020). What is the projected trend value for the year 2023?
  • A. 34
  • B. 36
  • C. 38
  • D. 40
Answer: B. 36
Here, mid-year 2020 is origin (X=0). Thus, 2021 is X=1, 2022 is X=2, and 2023 is X=3. Since a = ∑Y/N = 150/5 = 30 and b = ∑XY/∑X² = 20/10 = 2, the trend equation is Y = 30 + 2X. For 2023, Y = 30 + 2(3) = 36.
In a quality control inspection, 20 samples of size 100 each were taken from a production line. The total number of defectives observed across all samples was 160. Determine the Upper Control Limit (UCL) for the np-chart (number of defectives chart).
  • A. 12.16
  • B. 14.85
  • C. 16.14
  • D. 8.00
Answer: C. 16.14
Mean fraction defective p-bar = 160 / (20 * 100) = 0.08. Central line np-bar = 100 * 0.08 = 8. S.E.(np) = √(np-bar * (1 - p-bar)) = √(8 * 0.92) = 2.713. UCL = np-bar + 3 * S.E.(np) = 8 + 3(2.713) = 16.14.