Every Book Back multiple-choice question from Introduction to Statistical Methods and Econometrics (12th Standard Economics, Samacheer Kalvi) — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Q1
The word 'statistics' is used as _____________.
- A. Singular
- B. Plural
- C. Singular and PluralCorrect
- D. None of above
Explanation. The term statistics is derived from status (Latin) or statistik (German) and can be used in both singular (referring to statistical methods) and plural (numerical facts or data) contexts.
Q2
Who stated that statistics is a science of estimates and probabilities.
- A. Horace Secrist
- B. R.A Fisher
- C. Ya-Lun-Chou
- D. BoddingtonCorrect
Explanation. A.L. Boddington defined statistics as the science of estimates and probabilities, highlighting the estimation and probabilistic elements inherent in statistical methods.
Q3
Sources of secondary data are ___________.
- A. Published sources
- B. Unpublished sources
- C. neither published nor unpublished sources
- D. Both (A) and (B)Correct
Explanation. Secondary data is information that has already been collected and is readily available from both published sources (journals, reports) and unpublished databases.
Q4
The data collected by questionnaires are_____________.
- A. Primary dataCorrect
- B. Secondary data
- C. Published data
- D. Grouped data
Explanation. Data gathered for the first time by an investigator directly from respondents through questionnaires are classified as primary data.
Q5
A measure of the strength of the linear relationship that exists between two variables is called:
- A. Slope
- B. Intercept
- C. Correlation coefficientCorrect
- D. Regression equation
Explanation. The correlation coefficient is a statistical index that quantifies the strength and direction of a linear association between two quantitative variables.
Q6
If both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will be:
- A. PositiveCorrect
- B. Negative
- C. Zero
- D. One
Explanation. When two variables move consistently in the same direction, meaning they increase or decrease together, they exhibit a positive correlation.
Q7
If the points on the scatter diagram indicate that as one variable increases the other variable tends to decrease the value of r will be:
- A. Perfect positive
- B. Perfect negative
- C. NegativeCorrect
- D. Zero
Explanation. The direction of the trend in a scatter diagram determines whether the correlation coefficient is positive or negative.
Q8
The value of the coefficient of correlation r lies between:
- A. 0 and 1
- B. -1 and 0
- C. -1 and +1Correct
- D. -0.5 and +0.5
Explanation. The linear correlation coefficient r is a relative measure of linear association that is mathematically bounded between -1 and +1.
Q9
The term regression was used by:
- A. Newton
- B. Pearson
- C. Spearman
- D. GaltonCorrect
Explanation. Sir Francis Galton coined the term regression in 1877 during his studies on inheritance and height relations between fathers and sons.
Q10
The purpose of simple linear regression analysis is to:
- A. Predict one variable from another variableCorrect
- B. Replace points on a scatter diagram by a straight-line
- C. Measure the degree to which two variables are linearly associated
- D. Obtain the expected value of the independent random variable for a given value of the dependent variable
Explanation. The core objective of regression analysis is to model the functional relationship between variables to predict or estimate the dependent variable from the independent variable.
Q11
A process by which we estimate the value of dependent variable on the basis of one or more independent variables is called:
- A. Correlation
- B. RegressionCorrect
- C. Residual
- D. Slope
Explanation. Regression refers to the mathematical process that enables us to estimate or predict the average value of a dependent variable given one or more independent variables.
Q12
If Y = 2 - 0.2X, then the value of Y intercept is equal to
- A. -0.2
- B. 2Correct
- C. 0.2X
- D. All of the above
Explanation. In a linear equation of the form Y = a + bX, the constant parameter 'a' is the Y-intercept, which in this case equals 2.
Q13
In the regression equation \(Y = \\beta_0 + \\beta_1X\), the Y is called:
- A. Independent variable
- B. Dependent variableCorrect
- C. Continuous variable
- D. none of the above
Explanation. In standard econometric models, Y denotes the dependent, explained, or regressand variable, whose changes are predicted based on the independent variable X.
Q14
In the regression equation \(Y = \\beta_0 + \\beta_1X\), the X is called:
- A. Independent variableCorrect
- B. Dependent variable
- C. Continuous variable
- D. none of the above
Explanation. In a regression equation, X represents the independent, explanatory, or predictor variable used to estimate the value of the dependent variable Y.
Q15
Econometrics is the integration of
- A. Economics and Statistics
- B. Economics and Mathematics
- C. Economics, Mathematics and StatisticsCorrect
- D. None of the above
Explanation. Ragnar Frisch defined econometrics as the integration and mutual penetration of economic theory, mathematical models, and statistical analysis.
Q16
Econometrics is the word coined by
- A. Francis Galton
- B. Ragnar FrischCorrect
- C. Karl Pearson
- D. Spearman
Explanation. Ragnar Frisch, a Norwegian economist and statistician, coined the term econometrics in 1926 to describe the integration of economic theory, mathematics, and statistical methods.
Q17
The raw materials of Econometrics are:
- A. DataCorrect
- B. Goods
- C. Statistics
- D. Mathematics
Explanation. Empirical data acts as the essential raw material for econometrics, allowing economists to measure, estimate, and test theoretical economic relationships.
Q18
The term Ui in regression equation is
- A. Residuals
- B. Standard error
- C. Stochastic error termCorrect
- D. None of the above
Explanation. In an econometric regression model, the term Ui represents the stochastic error term, which accounts for the random or unexplained variations in the dependent variable.
Q19
The term Ui is introduced for the representation of
- A. Omitted VariableCorrect
- B. Standard error
- C. Bias
- D. Discrete Variable
Explanation. The stochastic error term Ui is introduced in econometric models to represent the collective influence of omitted variables that affect the dependent variable but are not explicitly included in the model.
Q20
Econometrics is the amalgamation of
- A. 3 subjectsCorrect
- B. 4 subjects
- C. 2 subjects
- D. 5 subjects
Explanation. Econometrics is the amalgamation of three main subjects: economic theory, mathematics, and statistical methods, integrated to analyze empirical economic phenomena.
