STATISTICS

1. Give a Classical definition of probability? Describe its Limitations? [VVI***]

=The classical definition of probability is the ratio of the number of favourable
outcomes to the total number of possible outcomes in an event. The formula for
calculating classical probability is: p(A)=f/N
Limitation:-
The limitations of the classical definition of probability :-
a) It is applicable when the total number of elementary events is finite
b) It is applicable if the elementary events are equally likely
c) It is applicable if the elementary events are mutually independent

2. State the conditions under which Binomial Distribution is applied?[VVI***]

=Binomial distribution is applied by following conditions:-
i. The experiment is performed under some conditions for a fix (finite) no of
trials, Say n.
ii. In each trials there are only two possibilities Success and failure (Occurrence
& Non Occurrence). Only two outcomes.
iii. The probability of a success denoted by p remains constant from trial to trial.
The probability of a failure denoted by q=1-p.
iv. Successive trials should be Independent that the outcome of any trial or
sequence of trial do not affect the outcomes of subsequent trials.

3. What do you mean by Mutually exclusive event & Equally Likely

event?[VVI***]
=
a. Mutually exclusive:-If the outcome of a particular random experiment cannot
occurred simultaneously. It is Called Mutually exclusive event. Ex:- Roll a
dice, toss a coin.
b. Equally Likely event:- An "equally likely event" refers to a situation where
multiple possible outcomes within an experiment all have the same probability
of occurring; essentially, each outcome has an equal chance of happening, with
no one outcome being more likely than another. Ex:-When you toss a coin, the
probability of getting heads is the same as the probability of getting tails; When
you throw a die, the probability of getting any number is 1/6.
4. What is Sampling Error and Non-Sampling Error/Biases? How does it arises
in Sampling?[VVI***]
=
• Sampling Error:- Sampling error is defined as the amount of inaccuracy in
estimating some value, which occurs due to considering a small section of the
population, called the sample, instead of the whole population. It is also called
an error.
• Non-Sampling Error:- Non-sampling error refers to inaccuracies or biases in
survey data or statistical studies that are not related to the process of selecting
the sample. These errors can occur at any stage of data collection, processing,
or analysis, and they are independent of sample size.
Reason for arises in Sampling:-
i) Bias may arise in selecting sample
ii) Bias may arise because of substitution of selecting unit by another
iii) Incomplete Investigation
iv) Negligence or carelessness
v) Estimation of Parameters

5. What is Sampling? Describes it types?

= In Statistics, the sampling method or sampling technique is the process of studying
the population by gathering information and analyzing that data.
Error=Sample Statistics - Population Parameter
Types of Probability Sampling:-
 a. Simple Random Sampling:- Simple random sampling is a type of probability
sampling in which the researcher randomly selects a subset of participants from
a population. Each member of the population has an equal chance of being
selected.
Ex:- Suppose we want to select a simple random sample of 200 students from a
school. Here, we can assign a number to every student in the school database
from 1 to 500 and use a random number generator to select a sample of 200
numbers.
b. Stratified Random Sampling:- In a stratified sampling method, the total
population is divided into smaller groups to complete the sampling process. The
small group is formed based on a few characteristics in the population. After
separating the population into a smaller group, the statisticians randomly select
the sample.
Ex:- There are three bags (A, B and C), each with different balls. Bag A has 50
balls, bag B has 100 balls, and bag C has 200 balls. We have to choose a sample
of balls from each bag proportionally. Suppose 5 balls from bag A, 10 balls
from bag B and 20 balls from bag C.

c. Systematic Sampling:- Systematic sampling is a probability sampling method

where researchers select members of the population at a regular interval.
Ex:- Suppose the names of 300 students of a school are sorted in the reverse
alphabetical order. To select a sample in a systematic sampling method, we have
to choose some 15 students by randomly selecting a starting number, say
5. From number 5 onwards, will select every 15th person from the sorted list.
Finally, we can end up with a sample of some students.

d. Multistage Random Sampling/Cluster Sampling:- Multistage random

sampling is a method of data collection that involves randomly selecting
samples from a population in stages, using smaller and smaller groups at each
stage.
Ex:- An educational institution has ten branches across the country with almost
the number of students. If we want to collect some data regarding facilities and
other things, we can’t travel to every unit to collect the required data. Hence, we
can use random sampling to select three or four branches as clusters.

Types of Non-Probability Sampling:-

a. Purposive Sampling:- Purposive sampling is a technique used in qualitative
research to select a specific group of individuals or units for analysis.
Participants are chosen “on purpose,” not randomly. It is also known as
judgmental sampling or selective sampling. Ex:- A researcher chooses to
examine the entire population that have a particular set of characteristics.
 b. Quota Sampling:- In the quota sampling method, the researcher forms a
sample that involves the individuals to represent the population based
on specific traits or qualities. Ex:- A job interviewer wants to hire people
from particular schools or with a certain race or ethnicity. They can isolate
applicants from those schools into subgroups.

c. Judgement Sampling:- The samples are selected only based on the

researcher’s knowledge. As their knowledge is instrumental in creating the
samples, there are the chances of obtaining highly accurate answers with a
minimum marginal error. Ex:- Researchers can use judgment sampling to
study soil color differences by selecting samples from sites where a particular
shade of color is typical

d. Snowball Sampling:- Snowball sampling is a research technique that

involves asking current participants to identify other potential participants for
a study. It's also known as chain sampling, network sampling, or referral
sampling. Ex:- During the pandemic, snowball sampling could have been
used to find people who were infected. With social distancing and quarantine,
it may have been difficult to locate these people.

6. Difference between Covariance and Correlation?

=
7. Write a short note of Null Hypothesis and Alternative Hypothesis?[VVI***]
=
• Null Hypothesis:- The null hypothesis is a kind of hypothesis which explains
the population parameter whose purpose is to test the validity of the given
experimental data. This hypothesis is either rejected or not rejected based on
the viability of the given population or sample. It is denoted by H0
Example:- There is no difference in average test scores between students who
study in the morning and those who study at night.

• Alternative Hypothesis:- Alternative hypothesis defines there is a statistically

important relationship between two variables. It is denoted by H1
Example:- To check the water quality of a river for one year, the researchers
are doing the observation. As per the null hypothesis, there is no change in
water quality in the first half of the year as compared to the second half. But in
the alternative hypothesis, the quality of water is poor in the second half when
observed.

8. Discuss the relative advantages of sample survey over census survey? [VVI***]
=A sample survey collects data from a selected subset of a population, while a census
survey collects data from every member of the population. Sample surveys offer
several advantages over census surveys in terms of efficiency, cost, and practicality.
a) A sample survey is faster, making it ideal for situations where quick decision-
making is needed.
b) A sample survey is budget-friendly, making it more feasible for organizations
with limited funds.
c) Sample surveys are more practical for large-scale studies.
 d) A well-designed sample survey can provide reliable data with fewer errors.
e) A sample survey improves response rates and data reliability.

9. What are the potential biases that can arises in a sampling? How does it arises
in Sampling?[VVI***]
= Sampling bias occurs when a sample is not representative of the population, leading
to inaccurate or misleading conclusions. Various types of biases can arise in the
sampling process, affecting the reliability and validity of results. Below are some
common types of sampling biases:
• Selection Bias:- It occurs when some members of the population have a higher
chance of being included in the sample than others. Example: Conducting a
survey about internet usage by only sampling urban residents, ignoring rural
areas.
• Non-Response Bias:- It happens when certain groups of people are less likely
to respond to the survey, leading to incomplete data. Example: A survey on job
satisfaction where only highly satisfied employees respond, while dissatisfied
employees ignore it.
• Voluntary Response Bias:- It arises when participants self-select into the
survey, usually those with strong opinions. Example: Online product reviews
where only customers with extreme positive or negative experiences leave
feedback.
• Under coverage Bias:- It occurs when a portion of the population is not
adequately represented in the sample. Example: Conducting a telephone
survey but excluding people without phones.
10. What do you mean by Standard Error? Distinguish Between standard error
& Standard Deviation ?
= The Standard Error (SE) is a measure of how much a sample statistic (such as the
sample mean) is expected to vary from the true population parameter.
11. “Sampling is necessity under certain condition”-Illustrate by example?
=
a) Large Population Size:-When the population is too large, conducting a census
survey is unrealistic. Example: In a nationwide election poll, surveying all
voters is impossible, so a sample is used.
b) Time Constraints:- If data is needed quickly, sampling is more efficient than
surveying an entire population. Example: In medical research, sampling allows
for faster drug trial results rather than waiting for data from the entire affected
population.
c) High Cost of Census:- Collecting data from every individual is expensive in
terms of labour, resources, and logistics. Example: A company testing product
satisfaction uses a sample of customers instead of surveying every buyer.
d) Destructive Testing:-If testing requires destroying the product, sampling is
the only option. Example: In quality control for light bulbs, testing every bulb
would mean destroying all of them. Instead, a sample is tested.
e) Accessibility Issues:-Some populations are difficult to reach in their entirety
due to geographical or logistical barriers. Example: Studying marine species
where only a sample can be collected from the ocean.
12. Explain the Concept of Probability Distribution? Give two examples that how
Probability Distribution helps in decision making process?
=Showing the maximum possible outcomes along with respective possibilities.
Example 1: Business Inventory Management (Normal Distribution)
• Scenario: A retail store wants to determine how many units of a product to
stock each month.
• Use of Probability Distribution:
o The store analyses past sales data, which follows a normal distribution.
 o Using the mean and standard deviation, the manager predicts the
probability of selling a certain quantity.
o The store orders stock based on a confidence level
• Decision Outcome:
o Reduces stock shortages and overstocking.
o Optimizes inventory costs and increases profits.
Example 2: Risk Assessment in Investment (Binomial & Normal Distribution)
• Scenario: An investor wants to decide whether to invest in a stock that has a
60% chance of giving positive returns.
• Use of Probability Distribution:
o The investor models the stock’s past returns using a binomial
distribution (success = profit, failure = loss).
o If historical returns suggest a normal distribution, the investor can use
standard deviation to estimate risk.
o A probability threshold is set to determine acceptable risk levels.
• Decision Outcome:
o Helps in selecting stocks with a higher probability of positive returns.
o Minimizes investment risks by balancing high and low-risk assets
13. Write a Short Notes on Type-I & Type-II Error?[VVI***]
=
• Type-I Error (False Positive):- A type I error appears when the null
hypothesis (H0) of an experiment is true, but still, it is rejected. It is stating
something which is not present or a false hit. A type I error is often called a
false positive (an event that shows that a given condition is present when it is
absent).
Example: A medical test incorrectly detects a disease in a healthy person. It
represented by α (alpha), which is the significance level (e.g., 5% or 0.05).

• Type-II Error (False Negative):-A type II error appears when the null
hypothesis is false but mistakenly fails to be refused. It is losing to state what is
present and a miss. A type II error is also known as false negative (where a real
hit was rejected by the test and is observed as a miss), in an experiment
checking for a condition with a final outcome of true or false.
Example:- A faulty medical test fails to detect a disease in a sick person.
14. Define this terms? [VVI***]
=
• Experiment:-Randomly or several time occurrence is called experiment.
• Event:- In probability theory, an event is a set of outcomes from a random
experiment
• Independent event:- Independent events are events that do not affect the
probability of each other occurring.
• Dependent event:- A "dependent event" is a situation in probability where
the outcome of one event directly influences the probability of another event
occurring
• Simple event:- A simple event is an event that has a single outcome or can
only happen in one way.
• Compound Event:- A compound event is an event that occurs when two or
more events happen at the same time or in succession.
• Exhaustive Event:- If the total no of outcome is known to us
• Complementary Event:- If the outcome of a random experiment is mutually
exclusive and exhaustive.
• Axiomatic Theory:-In exclusive then probability or -a+ probability or -a and
b.
15. Discuss various types of Co-relation with the help of Scatter
Diagram?[VVI**]
=Co-means we are considering two variables at a time. Relate means degree of
relation of two or more than two variables. It is called co-relation.
a) Perfect Positive Correlation:- If the points of the scatter diagram fall on a
straight line and have a positive(upward) slope, then the correlation is said to
be perfectly positive; i.e., r = +1.
b) Perfect Negative Correlation:- If the points of the scatter diagram fall on a
straight line and have a negative(downward) slope, then the correlation is said
to be perfectly negative; i.e., r = -1.

c) Positive Correlation:-When the points of the scatter diagram cluster around a

straight line (upward slope from left to right), then the correlation is said to be
positive.

d) Negative Correlation:-When the points of the scatter diagram cluster around a

straight line (downward/negative slope), then the correlation is said to be
negative.

e) No Correlation:-When the points of the scatter diagram are scattered in a

haphazard manner, then there is zero or no correlation.
16. Define Scales and types of Scales?[VVI***]
= A scale is a tool or system used to assign numbers or labels to quantities or
characteristics based on certain rules. In statistics, scales are used to categorize and
measure variables in a manner that enables comparison, calculation, and analysis.
Types of Scales:-
a. Nominal Scale :- The simplest form of measurement. It is used for
Identification Purpose. Example: Gender (Male, Female),Marital Status
(Single, Married, Divorced)

b. Ordinal Scale :- It determines the order of preference. Example: Likert

Scale (Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree),Class
rankings (1st, 2nd, 3rd, etc.)

c. Interval Scale :- An interval scale is a scale of measurement where the

difference between any two values is the same. Allows for arithmetic
operations such as addition and subtraction. Example: Temperature (Celsius,
Fahrenheit),Calendar years (e.g., 2020, 2021, 2022)

d. Ratio Scale :- A ratio scale is a variable measurement scale that can categorize,
rank, and evenly space data, and has a natural zero. Example: Height, Weight,
Distance, Time, Income, Age, Speed

17. Describe the types of data structures Or How data Looks like?[VVI***]
=
• Cross-Sectional Data:-At a particular point of a time we are collecting a data.
We use SPSS Software. Example:- Weather data collecting at a point in Asian
Country.
• Time-Series Data:- A time series is a collection of data points recorded at
regular intervals of time. We use E-views Software. Example:-Share Market
 • Panel Data:- Combination of Corsssectional Data & time series data. We use
Stata software. Example:-Performance of difference commercial banks(2000-
2024)

18. Explain different types of variables in statistics example?

= Variables are the characteristics or properties that can take on different values.
a) Nominal Variables:- These are variables that have no natural order or ranking.
Examples: Gender (Male, Female, Non-binary)
b) Ordinal Variables:- These variables have categories with a natural order or
ranking. However, the differences between the ranks are not measurable or fixed.
Examples: Education Level (High School, Bachelor’s, Master’s, PhD)
c) Discrete Variables:- These are variables that take on countable values, often in the
form of whole numbers. Examples: Number of Children in a family (0, 1, 2, 3, ...)
d) Continuous Variables: These variables can take on any value within a given
range. Examples: Height (5.4 feet, 5.42 feet, 5.423 feet, etc.),Weight (70 kg, 70.5 kg,
70.55 kg)
e) Independent Variables:-These are variables that are manipulated or controlled to
observe the effect on the dependent variable. Examples: In a study on the effect of
exercise on weight loss, exercise is the independent variable.
f) Dependent Variables:-These are variables that are observed and measured to see
how they change in response to the independent variable. Examples: In the exercise
and weight loss study, weight loss is the dependent variable.

19. Correlation does not deal with Causation-Explain? [VVI***]

="Correlation does not imply causation" means that just because two variables are
statistically related (correlated) does not necessarily mean that one variable causes the
other to change; it only indicates an association between them, and there could be
other factors at play causing the observed relationship.
• Correlation: Simply means that two variables tend to change together, either
increasing or decreasing simultaneously.
• Causation: Indicates that one variable directly influences or causes a change in
another variable.
Example:
• Correlation: Ice cream sales and shark attacks often increase during the
summer months, showing a correlation.
 • Not causation: This doesn't mean that eating ice cream causes shark
attacks; the real cause is likely the warmer weather which leads to more people
swimming and more ice cream consumption.

20. Difference between Simple & Multiple regression?

=

21. Difference between Pearson and spearman correlation?

=
22. Relationship Between Mean, Median, Mode?[VVI***]
=

23. Relationship Between Corelation & regression? [VVI***]

=