Commerce MCQs
Topic Notes: Commerce
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
151
Evaluate the following: Assertion (A) states that a large random sample typically reflects the characteristics of the population. Reason (R) claims this is based solely on the 'Law of Inertia of Large Numbers'.
Answer:
Assertion (A) is correct but the Reason (R) as per the sampling theory is not fully correct
Assertion (A) is correct because of the Law of Large Numbers. However, Reason (R) is incomplete because the Law of Inertia of Large Numbers is only one aspect; sampling theory also relies on the Law of Statistical Regularity and the Central Limit Theorem to ensure representativeness in random sampling.
152
Which of the following statistical tests are classified as non-parametric tests?
Answer:
1, 2 and 5
Non-parametric tests do not assume a normal distribution of the data. The Mann-Whitney U test, Kruskal-Wallis test, and Chi-square test are classic examples of non-parametric methods. Conversely, the F-test and T-test are parametric tests that rely on assumptions about population parameters and normal distribution.
153
Systematic sampling is classified under which of the following sampling categories?
Answer:
Only 3
Systematic sampling is a type of probability sampling where elements are selected from a population at a regular interval (k). Because every member of the population has a known, non-zero chance of being selected, it is strictly categorized as a probability sampling technique, distinct from non-probability methods like quota sampling.
154
Evaluate the following: Statement I: Rejecting a true null hypothesis is a Type II error. Statement II: The z-test is appropriate for small samples when the population standard deviation is unknown.
Answer:
Both statements are incorrect
Statement I is incorrect because rejecting a true null hypothesis is a Type I error, not Type II. Statement II is incorrect because the z-test requires a large sample size or a known population standard deviation; for small samples with unknown population standard deviation, the t-test is the appropriate statistical tool. Since both statements contain fundamental errors in statistical theory, option B is the correct choice.
155
Match the statistical terms in List-I with their definitions in List-II: (a) Level of significance, (b) Standard deviation of sampling distribution, (c) Numerical value describing population characteristics, (d) Normally distributed population.
Answer:
a-3, b-4, c-2, d-1
Level of significance relates to Type I error (a-3). The standard deviation of a sampling distribution is known as the standard error (b-4). A numerical value describing a population is a parameter (c-2). A normally distributed population is often assumed when the sample mean equals the population mean in specific tests (d-1).
156
Match the following hypothesis testing terms with their definitions: (a) Power of a test, (b) Type II error, (c) Level of significance, (d) Type I error.
Answer:
a-4, b-3, c-1, d-2
The power of a test is the probability of rejecting a false null hypothesis. Type II error is accepting a false null hypothesis. Level of significance is the probability of rejecting a true null hypothesis. Type I error is rejecting a true null hypothesis.
157
Evaluate the following assertion and reason: (A) Parametric tests are applied initially. (R) Non-parametric tests are less cumbersome to use and easier to compute.
Answer:
Both (A) and (R) are correct
Parametric tests are generally preferred as the first choice in statistical analysis because they have higher statistical power when assumptions are met. Non-parametric tests are often used as alternatives when data does not meet these assumptions, and they are frequently cited as being computationally simpler and less demanding regarding data distribution requirements.
158
Evaluate the following statements: Statement I: Non-parametric tests rely on assumptions about the parent population. Statement II: The standard deviation of the sampling distribution of the mean is the standard error of the mean.
Answer:
Statement-I is false while Statement-II is true
Statement I is false because non-parametric tests are 'distribution-free' and do not assume a specific population distribution. Statement II is true, as the standard deviation of a sampling distribution of the mean is defined as the standard error of the mean.
159
Calculate the Chi-square (χ²) value based on the following data: Observed (8, 2, 9, 4, 4, 15, 4) and Expected (7, 2, 4, 3, 8, 2, 4, 7).
Answer:
6.76 approx
The Chi-square statistic is calculated using the formula Σ((O-E)² / E). By calculating the squared difference between observed and expected frequencies for each category and dividing by the expected frequency, the sum yields approximately 6.76.
160
A sample is considered to be a representative subset of which of the following?
Answer:
Universe
In statistics, the 'universe' or 'population' refers to the entire group of individuals or items under study. A sample is a smaller, selected group intended to represent the characteristics of this entire population. By analyzing the sample, researchers draw inferences about the larger universe from which it was drawn.