Chapter 12: Introduction to Statistical Methods and Econometrics — Online MCQ Test
ECONOMICS · CLASS 12th · Tamil Nadu State Board
Practice Chapter 12: Introduction to Statistical Methods and Econometrics with a free chapter-wise online MCQ test.
This chapter covers: Introduces basic statistical tools used in economic analysis such as data collection index numbers correlation and regression and explains how econometrics applies these methods to....
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Chapter 12: Introduction to Statistical Methods and Econometrics — Important Questions & Answers
Which of the following is the first step in statistical investigation?
- A. Classification of data
- B. Collection of data
- C. Interpretation of data
- D. Presentation of data
Answer: B. Collection of data
Statistical work begins with collecting the required data. Only after collection can the data be classified, tabulated, and analyzed.
Statistical work begins with collecting the required data. Only after collection can the data be classified, tabulated, and analyzed.
Which index number measures the change in prices of a group of commodities over time?
- A. Quantity index number
- B. Value index number
- C. Price index number
- D. Deflator index number
Answer: C. Price index number
A price index number shows the relative change in prices between two periods. It is widely used to study inflation and cost of living.
A price index number shows the relative change in prices between two periods. It is widely used to study inflation and cost of living.
A researcher wants to study the average monthly income of households in a district. Which method is most appropriate for collecting primary data?
- A. Interview schedule
- B. Secondary data from newspapers only
- C. Index number method
- D. Regression analysis
Answer: A. Interview schedule
An interview schedule is suitable for collecting primary data directly from respondents. It helps obtain first-hand information for a specific study.
An interview schedule is suitable for collecting primary data directly from respondents. It helps obtain first-hand information for a specific study.
Which of the following statements about regression and correlation is correct?
- A. Correlation explains cause and effect, while regression only shows association
- B. Regression is used for prediction, while correlation measures the degree of relationship
- C. Both are used only for classification of data
- D. Correlation can predict future values, but regression cannot
Answer: B. Regression is used for prediction, while correlation measures the degree of relationship
Correlation measures the strength and direction of association between variables. Regression is mainly used to estimate or predict one variable from another.
Correlation measures the strength and direction of association between variables. Regression is mainly used to estimate or predict one variable from another.
Which of the following statements is TRUE regarding primary and secondary data?
- A. Primary data are always cheaper and faster to collect than secondary data
- B. Secondary data are collected first-hand by the investigator
- C. Primary data are original data collected directly from the source
- D. Secondary data can never be used in economic research
Answer: C. Primary data are original data collected directly from the source
Primary data are original and collected directly by the investigator from the source. Secondary data are already collected by someone else and used later.
Primary data are original and collected directly by the investigator from the source. Secondary data are already collected by someone else and used later.