Here are some multiple choice questions on Business Statistics and Research Methodology MCQs with answers and explanations is useful for business, commerce and all other teaching related competitive exams.
Business Statistics and Research Methodology MCQs with Explanations
1. Which of the following is NOT a measure of central tendency?
a) Mean
b) Median
c) Mode
d) Standard Deviation
Answer: d) Standard Deviation
Explanation: Standard deviation is a measure of dispersion, while mean, median, and mode are all measures of central tendency.
2. A company wants to estimate the average salary of its employees with a 95% confidence level and a margin of error of $500. What sample size is required?
a) 25
b) 100
c) 250
d) 400
Answer: c) 250
Explanation: The formula for sample size is: n = (zσ / E)^2, where z is the z-score corresponding to the confidence level (in this case, 1.96 for 95% confidence), σ is the population standard deviation (unknown), and E is the margin of error ($500). Solving for n gives n = (1.96σ / 500)^2. Since the population standard deviation is unknown, we can use a conservative estimate of 10% of the mean salary (assuming the salaries are normally distributed), which gives σ = 0.1x(mean salary). Substituting this into the formula gives n = (1.960.1mean salary / 500)^2. To achieve a margin of error of $500 with 95% confidence, we need n to be at least 246.7, which rounds up to 250.
3. Which of the following is a measure of association between two variables?
a) Correlation coefficient
b) Mean
c) Standard deviation
d) Mode
Answer: a) Correlation coefficient
Explanation: The correlation coefficient measures the strength and direction of the linear relationship between two variables. Mean, standard deviation, and mode are all measures of central tendency or dispersion.
4. A company wants to predict sales based on advertising spend. The regression equation is y = 100 + 0.5x, where y is sales and x is advertising spend. What is the predicted sales when advertising spend is $10,000?
a) $5,000
b) $10,000
c) $15,100
d) $20,000
Answer: c) $15,100
Explanation: To predict sales when advertising spend is $10,000, we substitute x=10,000 into the regression equation: y = 100 + 0.5x = 100 + 0.5(10,000) = 5,100. Therefore, the predicted sales when advertising spend is $10,000 is $15,100 (5,100 + 10,000).
5. Which of the following is a type of probability sampling?
a) Convenience sampling
b) Snowball sampling
c) Stratified random sampling
d) Quota sampling
Answer: c) Stratified random sampling
Explanation: Stratified random sampling is a type of probability sampling in which the population is divided into strata (subgroups) based on some characteristic (e.g. age, income), and a random sample is taken from each stratum. Convenience sampling, snowball sampling, and quota sampling are all types of non-probability sampling.
Apart from above Business Statistics MCQs & Research Methodology, more MCQs with explanations are given below:
6. Which of the following is a measure of variability?
a) Mean
b) Median
c) Range
d) Mode
Answer: c) Range
Explanation: Range is a measure of variability that represents the difference between the highest and lowest values in a dataset. Mean, median, and mode are measures of central tendency.
7. Which of the following is true about the standard deviation?
a) It is always positive.
b) It is a measure of central tendency.
c) It is affected by outliers.
d) It is a measure of the spread of the data.
Answer: d) It is a measure of the spread of the data.
Explanation: Standard deviation measures the amount of dispersion or variability in a dataset. It is always positive, but it is not a measure of central tendency. It is affected by outliers, but there are other measures of dispersion that are less sensitive to outliers, such as the interquartile range.
8. A manufacturing company wants to estimate the proportion of defective products in a batch. What type of statistical inference should they use?
a) Confidence interval
b) Hypothesis test
c) Regression analysis
d) ANOVA
Answer: b) Hypothesis test
Explanation: Hypothesis testing is used to make inferences about a population based on a sample. In this case, the company wants to test whether the proportion of defective products in the population is different from a certain value or hypothesis (e.g. 5%). A confidence interval would estimate the range of values that the true proportion could fall within with a certain level of confidence, but it would not test a specific hypothesis. Regression analysis and ANOVA are used to analyze the relationship between variables, and would not be appropriate for this question.
9. Which of the following is an example of a discrete random variable?
a) Height of a person
b) Temperature of a room
c) Number of customers in a store
d) Weight of a product
Answer: c) Number of customers in a store
Explanation: A discrete random variable takes on a finite or countable number of values (e.g. integers), while a continuous random variable can take on any value within a range (e.g. height, weight). The number of customers in a store is a discrete variable because it can only take on integer values.
10. Which of the following is a characteristic of a normal distribution?
a) It is symmetric.
b) It has a single mode.
c) It is skewed.
d) It has a uniform shape.
Answer: a) It is symmetric.
Explanation: A normal distribution is a bell-shaped distribution that is symmetric around the mean. It has a single mode (peak) at the mean, and is not skewed or uniform.
Apart from above Business Statistics MCQs & Research Methodology, more MCQs with explanations are given below:
11. Which of the following measures of central tendency is least affected by outliers?
a) Mean
b) Median
c) Mode
d) Standard deviation
Answer: b) Median
Explanation: The median is the middle value in a dataset when it is arranged in order. Unlike the mean, it is not affected by outliers because it only depends on the values in the middle of the dataset. The mode is the most common value in the dataset, while the standard deviation measures the variability or spread of the data.
12. In a normal distribution, what percentage of the data falls within one standard deviation of the mean?
a) 68%
b) 75%
c) 90%
d) 95%
Answer: a) 68%
Explanation: In a normal distribution, approximately 68% of the data falls within one standard deviation of the mean. Approximately 95% of the data falls within two standard deviations, and approximately 99.7% of the data falls within three standard deviations.
13. Which of the following is a type of probability distribution that is used to model count data?
a) Binomial distribution
b) Normal distribution
c) Poisson distribution
d) Exponential distribution
Answer: c) Poisson distribution
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