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12th Standard Economics — Introduction to Statistical Methods and Econometrics: Additional MCQs with Answers & Explanations

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15 extra multiple-choice questions for Introduction to Statistical Methods and Econometrics (12th Standard Economics, Samacheer Kalvi), beyond the ones printed in the textbook — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.

Answer key at a glance

Q1
Who used the German word 'statistik' in 1749 to describe the political science of different countries?
  • A. Gottfried AchenwallCorrect
  • B. Ronald Fisher
  • C. Karl Pearson
  • D. Francis GP Neison
Explanation. Gottfried Achenwall introduced the German term "statistik" in 1749 to describe the administrative and political state of nations.
Q2
Which scholar authored the 1845 book 'Contributions to vital Statistics', which was the first book to have statistics as its title?
  • A. Ronald Fisher
  • B. Francis GP NeisonCorrect
  • C. Gottfried Achenwall
  • D. P.C. Mahalanobis
Explanation. The first book with statistics in its title was written by Francis GP Neison in 1845 to analyze vital registration data.
Q3
Which historical text from the Mughal period mentions statistical and administrative surveys conducted during Emperor Akbar's reign?
  • A. Arthashastra
  • B. Ain-e-AkbariCorrect
  • C. Indica
  • D. Baburnama
Explanation. The book Ain-e-Akbari, written during 1596-1597, records administrative and statistical surveys conducted during the reign of Emperor Akbar.
Q4
When used in its singular form, the term 'statistics' refers to which of the following?
  • A. Aggregate of numerical facts and figures
  • B. Specific raw data points
  • C. Statistical methods and systematic processesCorrect
  • D. Historical registration records
Explanation. In singular form, statistics represents the scientific methods used for collecting, presenting, classifying, and interpreting numerical data.
Q5
A researcher classifies employees into three groups: matriculates, undergraduates, and post-graduates. Under which category of qualitative data does this classification fall?
  • A. Discrete numeric data
  • B. Nominal dataCorrect
  • C. Rank data
  • D. Secondary data
Explanation. Classifying subjects into descriptive categories without numerical order or ranking, such as educational level or gender, represents nominal data.
Q6
In the short-cut method for calculating the arithmetic mean, what does the symbol 'd' represent in the formula \(\bar{X} = A + \frac{\sum d}{n}\)?
  • A. Number of data items
  • B. Assumed mean value
  • C. Total sum of observations
  • D. Deviation of each value from the assumed meanCorrect
Explanation. In the short-cut formula, d denotes the individual deviation of each observed value from the chosen assumed mean.
Q7
Which absolute measure of dispersion was introduced by Karl Pearson in 1893 and is also known as the root-mean square deviation?
  • A. Range
  • B. Mean Deviation
  • C. Standard DeviationCorrect
  • D. Variance
Explanation. Karl Pearson introduced standard deviation in 1893, defining it as the positive square root of the mean of squared deviations.
Q8
Which statistical concept measures the strength and direction of a linear relationship between two variables and was calculated by Francis Galton?
  • A. Regression coefficient
  • B. Correlation coefficientCorrect
  • C. Standard error
  • D. Coefficient of variation
Explanation. The correlation coefficient, pioneered by Francis Galton and Karl Pearson, measures the linear association and strength between variables.
Q9
When three or more variables are studied simultaneously to understand their relationship, such as studying demand as a function of price, income, and tastes, what type of correlation is it?
  • A. Simple Correlation
  • B. Partial Correlation
  • C. Linear Correlation
  • D. Multiple CorrelationCorrect
Explanation. Multiple correlation involves analyzing the simultaneous relationships and variations among three or more variables in a study.
Q10
A correlation is described as linear when the ratio of change between two variables satisfies which of the following conditions?
  • A. It fluctuates periodically
  • B. It remains constantCorrect
  • C. It increases exponentially
  • D. It is completely random
Explanation. Linear correlation occurs when the amount of change in one variable bears a constant ratio to the change in the other variable.
Q11
The term 'regression' was coined by Francis Galton in 1877. What is the literal meaning of the word 'regression'?
  • A. Stepping back towards the averageCorrect
  • B. Moving forward infinitely
  • C. Spreading away from the center
  • D. Clustered around the mode
Explanation. Coined by Galton, regression literally means stepping back or returning toward the population average.
Q12
Who coined the term 'econometrics' in 1926 to describe the integration of economic theory, mathematics, and statistical methods?
  • A. Irving Fisher
  • B. Ragnar FrischCorrect
  • C. Arthur Goldberger
  • D. Gerhard Tinbergen
Explanation. Norwegian economist Ragnar Frisch coined the term econometrics in 1926 to denote the unification of economics, math, and statistics.
Q13
What is the primary feature of an econometric model that distinguishes it from a pure mathematical economic model?
  • A. The use of deterministic equations
  • B. Complete exclusion of actual data
  • C. The inclusion of a stochastic error term representing omitted variablesCorrect
  • D. Simple linear extrapolation without parameters
Explanation. Econometric models contain a stochastic error term representing omitted variables, making them distinct from deterministic mathematical models.
Q14
In which year did the Ministry of Statistics and Programme Implementation (MOSPI) come into existence in India as an independent ministry?
  • A. 1947
  • B. 1950
  • C. 1999Correct
  • D. 2007
Explanation. MOSPI was established as an independent ministry in India in 1999 after merging the departments of Statistics and Programme Implementation.
Q15
The Central Statistical Office (CSO) of India, responsible for coordinating statistical activities and compiling National Accounts, is headed by which official?
  • A. Governor of the Reserve Bank
  • B. Director-GeneralCorrect
  • C. Finance Minister of India
  • D. Prime Minister
Explanation. The Central Statistical Office is headed by a Director-General who is assisted by five Additional Director-Generals.
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About these Introduction to Statistical Methods and Econometrics questions

These are the Additional multiple-choice questions for Introduction to Statistical Methods and Econometrics from the Tamil Nadu State Board (Samacheer Kalvi) 12th Standard Economics syllabus. Each question shows the correct option and an original, step-by-step explanation so you understand the method, not just the answer. Use the answer key above to jump to any question, then take the practice test to check yourself under exam-like conditions.

Frequently asked questions

How many MCQs are there in Introduction to Statistical Methods and Econometrics?

This chapter has 15 book-back multiple-choice questions, each with the correct answer and a step-by-step explanation.

Are these 12th Standard Economics MCQs free to practise online?

Yes. Every question, answer and explanation here is free, and you can also take them as a timed practice test.

Where can I find the Introduction to Statistical Methods and Econometrics book-back answers?

The correct option for each question is highlighted on this page with a worked explanation, plus a quick answer-key summary at the top.

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