MCQs on Measures of Dispersion

Measures of Dispersion helps to see the extent to which the values in a distribution differ from the average. It is an important concept to understand how much individual items in a distribution vary from each other and the central value of that series. Measures of Dispersion is one of the essential concepts under economics and statistics as it helps to understand how scattered the data is within a distribution.

Below is a list of multiple-choice questions and answers on Measures of Dispersion to help students understand the topic better.

  1. Which of the following are methods under measures of dispersion?
    1. Standard deviation
    2. Mean deviation
    3. Range
    4. All of the above
  2. Answer: d

  3. Which of the following are characteristics of a good measure of dispersion?
    1. It should be easy to calculate
    2. It should be based on all the observations within a series
    3. It should not be affected by the fluctuations within the sampling
    4. All of the above
  4. Answer: d

  5. If all the observations within a series are multiplied by five, then __________.
    1. The new standard deviation would be decreased by five
    2. The new standard deviation would be increased by five
    3. The new standard deviation would be half of the previous standard deviation
    4. The new standard deviation would be multiplied by five
  6. Answer: d

  7. The coefficient of variation is a percentage expression for __________.
    1. Standard deviation
    2. Quartile deviation
    3. Mean deviation
    4. None of the above
  8. Answer: a

  9. While calculating the standard deviation, the deviations are only taken from ________.
    1. The mode value of a series
    2. The median value of a series
    3. The quartile value of a series
    4. The mean value of a series
  10. Answer: d

  11. ____________ and ____________ are types of measures of dispersion.
    1. Nominal, Real
    2. Nominal, Relative
    3. Real, Relative
    4. Absolute, Relative
  12. Answer: d

  13. The numerical value of a standard deviation can never be _________.
    1. Negative
    2. Zero
    3. Larger than the variance
    4. None of the above
  14. Answer: a

  15. The average of squared deviations from the arithmetic mean is known as ___________.
    1. Quartile deviation
    2. Standard deviation
    3. Variance
    4. None of the above
  16. Answer: c

  17. Which of the following is not a characteristic of a good measure of dispersion?
    1. It should be rigidly defined
    2. It should be based on extreme values
    3. It should be capable of further mathematical treatment and statistical analysis
    4. None of the above
  18. Answer: d

  19. Which of the following cannot be calculated for open-ended distributions?
    1. Standard deviation
    2. Mean deviation
    3. Range
    4. None of the above
  20. Answer: b

  21. The Lorenz Curve is a technique that is used to show _______.
    1. The inequality of wealth and income of a group of people
    2. The unemployment of a group of people
    3. The equality of wealth and income of a group of people
    4. None of the above
  22. Answer: a

  23. The Lorenz curve was developed in 1905 by ________.
    1. Dr. Max O. Lorenz
    2. Dr. Max C. Lorenz
    3. Dr. Max M. Lorenz
    4. Dr. Max S. Lorenz
  24. Answer: a

  25. The standard deviation of a set of 90 observations is 105. If the value of each observation is decreased by 9, then the new standard deviation of these observations would be ________.
    1. 96
    2. 100
    3. 105
    4. None of the above
  26. Answer: c

  27. The average daily wage of 100 workers in a shipyard was Rs. 200, with a standard deviation of 40. Now, if each worker gets an increment of 20% in their wages, how will it affect the mean wage?
    1. The mean wage will remain unchanged
    2. The mean wage will be increased by 20%
    3. The mean wage will be Rs. 240
    4. Both b and c
  28. Answer: d

  29. If you secure 97 percentile in an examination, it means that your position is below ______ of the total candidates who had appeared in the exam.
    1. 97 percent
    2. 3 percent
    3. 90 percent
    4. None of the above
  30. Answer: b

  31. Which of the following measures of dispersion can attain a negative value?
    1. Mean deviation
    2. Range
    3. Standard deviation
    4. None of the above
  32. Answer: b

  33. The range represents _________.
    1. The lowest number
    2. The highest number
    3. The middle number
    4. The difference between the lowest and highest number
  34. Answer: a

  35. The square of standard deviation is ________.
    1. Square deviation
    2. Mean square deviation
    3. Variance
    4. None of the above
  36. Answer: c

  37. An example of the application of range in a real-world scenario would be __________.
    1. Fluctuation in share prices
    2. Weather forecasts
    3. Quality control
    4. All of the above
  38. Answer: d

  39. The scatter within a distribution that is high on each side indicates _________.
    1. High uniformity of data
    2. Outliers of data
    3. Low uniformity of data
    4. None of the above
  40. Answer: b

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