Chapter1 Part B

Introduction to Statistics
MCQs Chapter 1.
1. What are economic statistics primarily concerned with?
a) Collection and analysis of numerical data related to the economy
b) Studying philosophical concepts in economics
c) Policy implementation in various countries
d) Theoretical aspects of demand and supply
Answer: a) Collection and analysis of numerical data related to the economy
2. The term "Statistics" is derived from the:
a) Latin word "Statistica"
b) Greek word "Statistikos"
c) German word "Statistik"
d) French word "Statistique"
Answer: c) German word "Statistik"
3. In its origin, statistics was primarily used for:
a) Business and industry
b) Governance and state administration
c) Academic research
d) Weather forecasting
Answer: b) Governance and state administration
4. Who is known as the “Father of Modern Statistics”?
a) Ronald A. Fisher
b) Karl Pearson
c) Francis Galton
d) John Graunt
Answer: a) Ronald A. Fisher
5. In ancient times, statistics was used to keep records related to:
a) Agriculture
b) Population and taxation
c) Trade and commerce
d) Wars and conflicts
Answer: b) Population and taxation
6. The growth of statistics in the 20th century was largely driven by:
a) Agricultural experiments
b) Industrial growth and research
c) Social and economic research
d) All of the above
Answer: d) All of the above
7. Which characteristic of statistics states that it deals with groups, not individuals?
a) Aggregates of facts
b) Numerically expressed
c) Affected by multiplicity of causes
d) Predetermined purpose
Answer: a) Aggregates of facts
8. One of the key features of statistics is that it:
a) Provides exact conclusions
b) Always uses qualitative data
c) Is influenced by multiple factors
d) Is not affected by bias
Answer: c) Is influenced by multiple factors
9. Statistics helps in making decisions by:
a) Predicting future outcomes
b) Analysing historical data
c) Both a and b
d) None of the above
Answer: c) Both a and b
10. Which of the following is not a limitation of statistics?
a) Statistics is not applicable to qualitative data.
b) Statistics only deals with aggregates of facts.
c) Statistics provides exact and universal results.
d) Statistics is affected by the skill of the user.
Answer: c) Statistics provides exact and universal results.
11. Which of the following is a source of economic statistics?
a) Census reports
b) Economic surveys
c) National income accounts
d) All of the above
Answer: d) All of the above
12. Which of the following is an example of time series data in economic statistics?
a) The income distribution of a country in a given year
b) Population data over the last ten years
c) Monthly rainfall in a region
d) Survey data on individual incomes
Answer: b) Population data over the last ten years
13. What is the primary purpose of economic statistics?
a) To provide theoretical insights into economics
b) To aid in making economic policies and decisions
c) To teach mathematical techniques
d) To analyze cultural trends
Answer: b) To aid in making economic policies and decisions
14. Which of the following is an example of microeconomic statistics?
a) The GDP of a country
b) The inflation rate in an economy
c) The cost structure of a particular firm
d) The trade deficit of a country
Answer: c) The cost structure of a particular firm
15. Which index is used to measure inflation?
a) Consumer Price Index (CPI)
b) Gross Domestic Product (GDP)
c) Human Development Index (HDI)
 d) Gross National Product (GNP)
Answer: a) Consumer Price Index (CPI)
16. Which organization in India is responsible for compiling economic statistics?
a) National Statistical Office (NSO)
b) Reserve Bank of India (RBI)
c) Indian Economic Service (IES)
d) Ministry of Finance
Answer: a) National Statistical Office (NSO)
17. Which of the following is not a measure of central tendency in economic
statistics?
a) Mean
b) Median
c) Mode
d) Standard deviation
Answer: d) Standard deviation
18. Which method is commonly used to collect economic statistics?
a) Random sampling
b) Complete enumeration
c) Survey method
d) All of the above
Answer: d) All of the above

Assertion-Reason Questions
Instructions:
Choose the correct option:
❖ Both A and R are true, and R is the correct explanation of A.
❖ Both A and R are true, but R is not the correct explanation of A.
❖ A is true, but R is false.
❖ A is false, but R is true.
1. Assertion (A): Statistics was initially used for governance and administration.
Reason (R): Ancient rulers required data about population, land, and taxation for
effective administration.
Answer: 1
2. Assertion (A): The growth of statistics has been influenced by industrial and
scientific developments.
Reason (R): Statistics plays a key role in analyzing experiments, industrial outputs,
and economic trends.
 Answer: 1
3. Assertion (A): Statistics only deals with numerical data.
Reason (R): Qualitative aspects, such as opinions and attitudes, cannot be expressed
statistically.
Answer: 3
4. Assertion (A): Statistics is a science that studies data.
Reason (R): It involves systematic methods of collecting, organizing, analyzing, and
interpreting data.
Answer: 1
5. Assertion (A): The importance of statistics has grown in the modern era.
Reason (R): Statistics is now widely used in fields such as economics, business,
healthcare, and education.
Answer: 1
6. Assertion (A): Statistics can provide exact conclusions in all cases.
Reason (R): Statistical results are influenced by variability and approximations.
Answer: 4
7. Assertion (A): Statistics is not applicable to individual cases.
Reason (R): Statistics deals with aggregates of facts rather than individual data
points.
Answer: 1
8. Assertion (A): Statistics is used for framing economic policies.
Reason (R): Statistical analysis helps governments and businesses understand trends
and make informed decisions.
Answer: 1
9. Assertion (A): The use of statistics began during the industrial revolution.
Reason (R): Statistics gained importance with the need for measuring and managing
production and resources.
Answer: 2
10. Assertion (A): Statistics is influenced by the skill and expertise of the user.
Reason (R): Misinterpretation or misuse of statistical methods can lead to incorrect
conclusions.
Answer: 1
 Collection of data
Chapter 2
1. Primary data is collected by:
a) Referring to published sources
b) Someone else for their own use
c) The investigator for the first time
d) Conducting surveys from old records
Answer: c) The investigator for the first time
2. Data collected from records of a census is an example of:
a) Primary data
b) Secondary data
c) Qualitative data
d) Experimental data
Answer: b) Secondary data
3. Which of the following methods is not a method of primary data
collection?
a) Direct personal interviews
b) Indirect oral interviews
c) Collection from newspapers
d) Mailed questionnaire
Answer: c) Collection from newspapers
4. Which is the quickest and most economical method of data collection?
a) Personal interviews
b) Observation
c) Questionnaire method
d) Census method
Answer: c) Questionnaire method
5. The data that can be counted and is represented in numerical form is
called:
a) Qualitative data
b) Quantitative data
c) Primary data
d) Discrete data
Answer: b) Quantitative data
6. The data collected by observing behavior and events directly in their
natural setting is called:
a) Documentary data
b) Observational data
c) Experimental data
 d) Derived data
Answer: b) Observational data
7. A collection of data that represents the entire population is known as:
a) Census
b) Sample survey
c) Parameter
d) Statistical abstract
Answer: a) Census
8. The most accurate method for collecting data from a population is:
a) Census method
b) Sampling method
c) Survey method
d) Questionnaire method
Answer: a) Census method
9. Secondary data is obtained from:
a) Surveys conducted by the researcher
b) Government publications
c) Interviews conducted by the researcher
d) Mailed questionnaires
Answer: b) Government publications
10. Which of the following is a characteristic of secondary data?
a) Collected for the first time
b) Collected by the investigator
c) Available from published sources
d) More expensive to collect
Answer: c) Available from published sources
11. Which of the following is not an advantage of sampling over a census?
a) Less expensive
b) Time-efficient
c) Provides detailed information about every unit
d) Requires fewer resources
Answer: c) Provides detailed information about every unit
12. Which type of data is associated with facts such as age, income, or height?
a) Qualitative data
b) Primary data
c) Quantitative data
d) Secondary data
Answer: c) Quantitative data
13. A mailed questionnaire is an example of which method of data collection?
a) Personal interview
b) Indirect oral investigation
c) Survey method
 d) Documentary method
Answer: c) Survey method
14. When a sample is selected randomly from a population, it is called:
a) Non-random sampling
b) Random sampling
c) Stratified sampling
d) Systematic sampling
Answer: b) Random sampling
15. Which method is suitable for collecting data from illiterate respondents?
a) Mailed questionnaire
b) Direct personal interviews
c) Telephone survey
d) Internet survey
Answer: b) Direct personal interviews
16. Which type of data is more time-consuming and expensive to collect?
a) Primary data
b) Secondary data
c) Qualitative data
d) Statistical data
Answer: a) Primary data
17. In the observation method, the accuracy of the data depends on:
a) The willingness of the respondent
b) The skill of the interviewer
c) The ability of the observer to notice details
d) The type of questionnaire used
Answer: c) The ability of the observer to notice details
18. What is the first step in the process of data collection?
a) Analyzing data
b) Editing data
c) Defining the objective
d) Using statistical tools
Answer: c) Defining the objective
19. Which of the following statements about secondary data is false?
a) It is collected by someone else
b) It is less time-consuming to obtain
c) It is always accurate and reliable
d) It may not fit the specific needs of the study
Answer: c) It is always accurate and reliable
20. In the stratified sampling method, the population is divided into:
a) Equal groups
b) Homogeneous groups
c) Random groups
 d) Unequal groups
Answer: b) Homogeneous groups.
21. When a sample is drawn using random selection, it is called:
a) Systematic sampling
b) Stratified sampling
c) Simple random sampling
d) Cluster sampling
Answer: c) Simple random sampling
22. A questionnaire used for collecting data must be:
a) Ambiguous and lengthy
b) Clear and concise
c) Detailed with complex terms
d) None of the above
Answer: b) Clear and concise
23. A pilot survey is conducted to:
a) Collect final data
b) Test the feasibility of the main survey
c) Eliminate errors in the analysis
d) Publish statistical reports
Answer: b) Test the feasibility of the main survey
24. The population in statistics refers to:
a) All living beings in a country
b) All items under study in a given problem
c) Only human beings in a study
d) The sample drawn from a larger group
Answer: b) All items under study in a given problem
25. Data that cannot be directly measured but can be categorized is known
as:
a) Quantitative data
b) Primary data
c) Qualitative data
d) Discrete data
Answer: c) Qualitative data
26. Which of the following is a disadvantage of secondary data?
a) It is time-consuming to collect
b) It may not be relevant to the purpose of the study
c) It requires direct interaction with respondents
d) It is always incomplete
Answer: b) It may not be relevant to the purpose of the study
27. Which type of sampling divides the population into groups and selects
samples from each group?
a) Systematic sampling
b) Stratified sampling
 c) Random sampling
d) Cluster sampling
Answer: b) Stratified sampling
28. What is the main objective of sampling in data collection?
a) To collect data from every individual
b) To save time and resources while gathering information
c) To publish the data in books and journals
d) To study qualitative aspects of data
Answer: b) To save time and resources while gathering information
29. A census survey is more suitable than a sample survey when:
a) The population is large
b) The population is homogeneous
c) High accuracy is required
d) Time and cost are limited
Answer: c) High accuracy is required
30. In indirect oral investigation, data is collected through:
a) Personal interviews
b) Third parties or witnesses
c) Observation
d) Questionnaire
Answer: b) Third parties or witnesses

Assertion-Reason Questions
Instructions:
Choose the correct option:
❖ Both A and R are true, and R is the correct explanation of A.
❖ Both A and R are true, but R is not the correct explanation of A.
❖ A is true, but R is false.
❖ A is false, but R is true.

1. Assertion (A): Primary data is considered more reliable than secondary data.
Reason (R): Primary data is collected directly by the investigator for a specific
purpose. Answer: 1
2. Assertion (A): Census surveys are time-consuming and expensive.
Reason (R): Census surveys collect data from every individual in the population.
Answer: 1
3. Assertion (A): Secondary data may not always be relevant to a specific study.
 Reason (R): Secondary data is collected by someone else for a purpose different from
the current study. Answer: 1
4. Assertion (A): Sampling is preferred over census when studying a large population.
Reason (R): Sampling saves time and resources compared to a census survey.
Answer: 1
5. Assertion (A): Data collected through observation is always accurate.
Reason (R): Observation records behavior and events directly without relying on
respondents. Answer: 3
6. Assertion (A): A questionnaire should be simple and concise.
Reason (R): A clear and concise questionnaire helps avoid ambiguity and ensures
accurate responses. Answer: 1
7. Assertion (A): Random sampling ensures unbiased data collection.
Reason (R): In random sampling, every individual in the population has an equal
chance of being selected. Answer: 1
8. Assertion (A): A pilot survey is an essential step in data collection.
Reason (R): A pilot survey helps identify potential problems in the main survey.
Answer: 1
9. Assertion (A): Secondary data is less expensive to collect than primary data.
Reason (R): Secondary data is already available from published sources.
Answer: 1
10. Assertion (A): Data collected through personal interviews is always free from bias.
Reason (R): Personal interviews allow the investigator to interact directly with the
respondents.
Answer: 3
11. Assertion (A): Sampling errors are less likely in a large sample size.
Reason (R): A larger sample size better represents the population.
Answer: 1
12. Assertion (A): Census surveys provide highly accurate data.
Reason (R): Census surveys include data from the entire population rather than a
sample.
Answer: 1