MCQs on Measures of Dispersion, Correlation and Index Number

Measures of Dispersion, Correlation and Index Number is one of the most important chapters in economics. It involves using different statistical tools for the purpose of analysis and interpretation of numerical data. These statistical tools include mean, median, mode, standard deviation, quartile deviation, range and mean deviation.

We have listed below a number of multiple-choice questions on Measures of Dispersion, Correlation, and Index Number to help students get a better understanding of the topic.

  1. Which of the following is a measure of the variation between items in a data series?
    1. Dispersion
    2. Range
    3. Both a and b are correct
    4. Both a and b are incorrect
  2. Answer: a

  3. Which of the following statistical tools is a relative measure of the dispersion of a series?
    1. Relative deviation
    2. Standard deviation
    3. Both a and b are correct
    4. Both a and b are incorrect
  4. Answer: b

  5. Which of the following is measured by dividing the standard deviation with the mean of a series?
    1. Coefficient of standard deviation
    2. Absolute deviation
    3. Both a and b are incorrect
    4. Both a and b are correct
  6. Answer: a

  7. Which of the following methods is used to calculate the standard deviation?
    1. Short cut method
    2. Step deviation method
    3. Direct method
    4. All of the above
  8. Answer: d

  9. Which of the following is the correct index method for comparing the price of food products like wheat over a period of time?
    1. Price index
    2. Aggregate index
    3. Volume index
    4. None of the above
  10. Answer: a

  11. Which of the following research tools is appropriate for understanding the classroom-based teaching and learning process?
    1. Questionnaire
    2. Interview Schedule
    3. Observation schedule
    4. None of the above
  12. Answer: c

  13. Which of the following statistical techniques is the best measure for variability?
    1. Standard deviation
    2. Mean deviation
    3. Quartile deviation
    4. None of the above
  14. Answer: b

  15. Which of the following is the main objective of dispersion?
    1. It helps to know all of the range values
    2. It is helpful in comparing disparity
    3. It helps to know the variation of all the different values
    4. All of the above
  16. Answer: d

  17. Which of the following statements about the standard deviation is true?
    1. When the mean is a whole number, the direct method is useful to calculate the standard deviation
    2. When the mean is a whole number, the short cut method is useful to calculate the standard deviation
    3. When the mean is a whole number, the step deviation method is useful to calculate the standard deviation
    4. All of the above
  18. Answer: d

  19. Which of the following statements is an example of negative correlation?
    1. Corruption in India is on the rise
    2. Any increase in the population of a country will lead to the shortage of food grains
    3. Both a and b are correct
    4. Both a and b are incorrect
  20. Answer: b

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