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Q.No.1. Give Italian, Latin & German words used for the term Statistics.
Ans: The word Statistic came from the Latin word Status or the Italian word
Statista or German word Statistika which means Political State or Government.
Q.No.2. What is Statistics?
Ans: Statistics is the study of the collection, organization, analysis, interpretation
and presentation of data. It deals with all aspects of data. It is science of average.
Q.No.3. Define Statistics in your own words.
Ans: Statistics is the science which deals with data. After collection & organization of
data, it is further analyzed statistically and interpreted. It is the science of average,
counting & probability.
Q.No.4. Explain the term statistics in two different meanings.
Ans: The word Statistics has two different meaning i.e. in plural sense & in singular
sense which are as below:
In plural sense Statistics refers to data collected in systematic manner for
definite purpose in any filed of study i.e. industrial production, population
growth of country etc.
In singular sense Statistics refers to collection, analysis, interpretation &
presentation of numerical data. Through this we can make the opinion and
conclusion about the specific issue.
Q.No.5. What are the two different branches of statistics?
Ans: Statistics may be divided in two different branches (1) Descriptive Statistics
(2) Inferential Statistics
Q.No.6. List the phases of statistical analysis.
Ans: (1) Collection of data (2) Organization of data (3) Analysis of data (4)
Presentation & Interpretation of data.
Q.No.7. Differentiate census from sample survey.
Ans: In the census, data is collected at a specified time from the entire population
but in survey data is collected partly from the population.
Q.No.8. Why sample survey is preferred over census?
Ans: Sample survey is preferred over census because it is cost and time effective over
census.
Q.No.9. Distinguish a complete enumeration from sample survey.
Ans: Complete enumeration is the study of whole population in specified time while
sample survey is the statistical study of the part of population.
Q.No.10. Describe three limitations of Statistics.
Ans: (1)Statistical methods are best applicable on quantitative data.
(2) Statistical cannot be applied to heterogeneous data.
(3) Only a person who has an expert knowledge of statistics can handle statistical
data efficiently.
Q.No.11. What is Variable?
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
Page | 2
Ans: A measurable quantity which can vary (differ) from one individual to another or
one object to another object is called variable. For e.g. height of students, weight of
children. It is denoted by the letters of alphabet e.g. x, y, z etc.
Q.No.12. What is Constant?
Ans: A characteristic is called a constant if it assumes a fixed or one value e.g. p is a
constant with a numerical value of 3.14286. is also a constant with numerical value
of 2.71828. The best example is that the weight of the whole Earth is constant.
Q.No.13. Define discrete and continuous variable.
Ans: A variable which can assume only some specific values within a given range is
called discrete variable. For e.g. Number of students in a class, Number of houses in a
street, number of children in a family etc. it cant occur in decimal. A variable which
can assume any value within a given range is called a continuous variable. For e.g.
age of persons, speed of car, temperature at a place, income of a person, height of a
plant, a life time of a T.V tube etc.
Q.No.14. Define discrete variable by giving examples.
Ans: A variable which can assume only some specific values within a given range is
called discrete variable. For e.g. Number of students in a class, Number of houses in a
street, number of children in a family etc. it cant occur in decimal.
Q.No.15. What is quantitative variable?
Ans: A characteristics expressed by mean of quantitative terms is known as
quantitative variable. For e.g. number of deaths in a country per year, prices
temperature readings, heights, weights etc.
Q.No.16. What is qualitative variable?
Ans: When a characteristic is express by mean of qualitative term is known as
qualitative variable or an attributes. For e.g. smoking, beauty, educational status,
green, blues etc. it is noted that these characters can not measure numerically.
Q.No.17. What is population?
Ans: The total group under discussion is called population. For example height of all
class students.
Q.No.18. What is Sample?
Ans: A part of population which represents the population is called sample.
Q.No.19. Define population and sample.
Ans: Total group under discussion is called population. For example height of all class
students. A part of population which represents the population is called sample.
Q.No.20. What is a parameter?
Ans: A measure computed from a population data is called parameter. For example a
population mean is a parameter.
Q.No.21. What is a statistic?
Ans: A measure computed from a sample data is called statistic. For example sample
mean is a statistic.
Q.No.22. What is descriptive statistics.
Ans: In descriptive statistics, it deals with collection of data, its presentation in
various forms, such as tables, graphs and diagrams and findings averages and other
measures which would describe the data.
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
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Ans: Statistical analysis will be productive only when data will be error free so editing
of data makes data error free.
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19.
Solution:
Array in ascending order is 4, 6, 7, 10, 13, 16, and 19
Array in descending order id 19, 16, 13, 10, 7, 6, and 4
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Ans: (1) It shows trend (2) It gives understanding of data (3) It is easy to understand
Q.No.25. what is simple frequency distribution?
Ans: Number of times a given quantity (or group of quantities) occurs in a set of data.
For example, the frequency distribution of income in a population would show how
many individuals (or households) have the income of a certain level (say, $5,000 a
month)
Q.No.26. Define cumulative frequency distribution.
Ans: A table showing the cumulative frequency distribution is called the cumulative
frequency distribution or a cumulative frequency distribution is a summary of a set of
data showing the frequency (or number) of items less than or equal to the upper class
limit of each class.
Ans: Types of Averages: (1) Arithmetic Mean (2) Geometric Mean (3)
Harmonic
Mean
(4) Median (5) Mode
Note: To define one of average, see below:
Q.No.5. Define Arithmetic Mean.
Ans: It is the most commonly used average or measure of the central tendency applicable only in
case of quantitative data. Arithmetic mean is also simply called mean. Arithmetic mean is defined
as:
Arithmetic mean is quotient of sum of the given values and number of the given values.
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
Page | 8
Q.No.6. Explain the Direct Method for finding the arithmetic mean.
Ans: There are two formulas one for ungroup data and one for group data. In ungroup
data XX=X/n where X= sum of all X variable values and n means count of X
variable. In group data XX=fX/f where fX= sum of relevant frequencies multiply by
relevant variable X and f= sum of all the frequencies.
Q.No.7. What do you understand by Change of Origin & Change of
Scale?
Ans: Calculation of arithmetic mean by indirect shortcut method is called change of
origin In this method we calculate D by subtracting constant from every X value.
On the other hand method of calculating arithmetic mean by indirect coding is called
Change of Scale in which we divide D=X-XX by C (Common Divisor) or h.
Q.No.8.Give properties of arithmetic mean.
Ans:
(1) The sum of the deviations, of all the values of x, from their arithmetic mean,
is zero i.e. for ungroup data (X-XX)=0 and for group data f(X-XX)=0.
(2)Sum of squares of deviations from arithmetic mean is least i.e. (X-XX) < (XA) where A is any constant other than XX.
(3)If mean of variable X is XX and X & Y are linearly related as Y=a+bX then
YX=a+bXX. Where a and b are known constants.
(4)If means of n1, n2, n3..nk set of values are XX1, XX2, XX3. XXk
respectively then mean of overall n values is:
XXc=
XXc=
n1XX1+n2XX2+n3XX3+
nkXXk
n1+n2+n3+nk
niXXi
ni
Merits:
It is rigidly defined.
It is easy to calculate and simple to follow.
It is based on all the observations.
It is determined for almost every kind of data.
It is finite and not indefinite.
It is readily put to algebraic treatment.
It is least affected by fluctuations of sampling.
Demerits:
The arithmetic mean is highly affected by extreme values.
It cannot average the ratios and percentages properly.
It is not an appropriate average for highly skewed distributions.
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
Page | 9
Advantages:
It is easy to understand and simple to calculate.
It is not affected by extreme large or small values.
It can be located only by inspection in ungrouped data and discrete
frequency distribution.
It can be useful for qualitative data.
It can be computed in open-end frequency table.
It can be located graphically.
Disadvantages:
It is not well defined.
It is not based on all the values.
It is stable for large values and it will not be well defined if the data
consists of small number of values.
It is not capable of further mathematical treatment.
Sometimes, the data having one or more than one mode and sometimes
the data having no mode at all.
Q.No.14. Compare advantages and disadvantages of median.
Ans:
Advantages
1)
2)
3)
4)
5)
Disadvantages:
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Important Formulas
Arithmetic Mean
Methods Name
Nature of Data
Ungrouped Data
Grouped Data
Direct Method
Indirect or
Short-Cut Method
Method of
Step-Deviation
Where
Indicates values of the variable
Indicates number of values of
.
.
i.e,
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 11
Step-deviation and
Median
Median from Ungrouped Data:
Median = Value of
item
Where
= Lower class boundary of the model class
= Frequency of the median class
= Number of values or total frequency
= Cumulative frequency of the class preceding the median class
= Class interval size of the model class
Mode
Mode from Ungrouped Data:
Mode is calculated from ungrouped data by inspecting the given data.
We pick out that value which occur the greatest numbers of times in the data.
Mode from Grouped Data:
When frequency distribution with equal class interval sizes, the class which
has maximum frequency is called model class.
Or
Where
= Lower class boundary of the model class
= Frequency of the model class (maximum frequency)
= Frequency preceding the model class frequency
= Frequency following the model class frequency
= Class interval size of the model class
Or Empirical Mode= 3 Median 2 Mean
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 12
Where:
Stands for weighted arithmetic mean.
Stands for values of the items and
Stands for weight of the item
Harmonic Mean
For Ungrouped Data
Geometric Mean
For Ungrouped Data
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 13
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performance etc.
5. The index numbers of import prices and export prices are used to measure
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Composite
Weighted
Un Weighted
Average of relative
Average of relative
Aggregative
Aggregative
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 16
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Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt