Statistical tools and interpretation is among the most important units in economics. This unit mainly focuses on the usage of different kinds of statistical tools that will help the students to accurately analyse and interpret the data and extract meaningful insights out of the same. The entire unit is based on an understanding of numbers, and it can also help students get good marks in the exams.

We have collated a number of multiple-choice questions on Statistical Tools and Interpretation below to help students get a basic understanding of the topic.

**Which of the following statements is true the central measures of tendency?**- The most common measure of central tendency is mean
- The most common measure of central tendency is mode
- The most common measure of central tendency is median
- The most common measure of central tendency is weighted average mean

**Which of the following statements about the median is correct?**- The median is always less than both mean and mode
- The median is always lesser than mean but greater than mode
- The median is always between the mean and mode
- The median is always greater than mean but lesser than mode

**Which of the following statements about the mode is correct?**- For the mode of a continuous series, the class intervals should always be equal, while the series can be exclusive
- For the mode of a continuous series, the class intervals should always be equal, while the series should be exclusive
- For the mode of a continuous series, the class intervals can be equal, while the series can be exclusive
- For the mode of a continuous series, the class intervals can be equal, while the series should be exclusive

**Which of the following is the correct formula for the arithmetic mean?**- The formula for arithmetic mean is the total sum of values of observations divided by the number of observations
- The formula for arithmetic mean is the total sum of values of observations plus the number of observations
- The formula for arithmetic mean is the total sum of values of observations minus the number of observations
- The formula for arithmetic mean is the total sum of values of observations multiplied by the number of observations

**Which of the following statements is correct?**- Mean is the positioned value of a variable which divides a distribution into two equal parts
- Median is the positioned value of a variable which divides a distribution into two equal parts
- Mode is the positioned value of a variable which divides a distribution into two equal parts
- Weighted average mean is the positioned value of a variable which divides a distribution into two equal parts

**Which of the following statements is not true?**- Median does not concentrate on the central items of a data series
- Mode does not concentrate on the central items of a data series
- Mean does not concentrate on the central items of a data series
- Weighted average mean does not concentrate on the central items of a data series

**Which of the following statements about the distribution of items is true?**- A quartile divides a distribution into a hundred equal parts
- A percentile divides a distribution into a hundred equal parts
- A decile divides a distribution into a hundred equal parts
- Median divides a distribution into a hundred equal parts

**Which of the following quartiles is also the median?**- Q1
- Q3
- Q2
- None of the above

**Which of the following statements is true about the median?**- The median can also be calculated from an individual series
- The median can also be calculated from a continuous series
- The median can also be calculated from a discrete series
- All of the above

**Which of the following statements about the mathematical average is false?**- The harmonic mean is a mathematical average
- The arithmetic mean is a mathematical average
- The geometric mean is a mathematical average
- None of the above

**Which of the following statements is correct?**- The division of a column into ten equal parts is known as a decile
- The division of a column into ten equal parts is known as a quartile
- The division of a column into ten equal parts is known as the median
- The division of a column into ten equal parts is known as a percentile

**Which of the following statements is true about the correlation multiple?**- The correlation multiple is placed between 0 and 1
- The correlation multiple is placed between 0 and -1
- The correlation multiple is placed between -1 and 1
- The correlation multiple is placed between 0 and 2

**Which of the following statements about the simple average is correct?**- The simple average is also known as the relative average
- The simple average is also known as the unweighted average
- The simple average is also known as the weighted average
- None of the above

**Which of the following statements about the step deviation method is accurate?**- The step deviation method or the coding method is used for computing arithmetic mean
- The step deviation method or the coding method is used for computing weighted mean
- The step deviation method or the coding method is used for computing geometric mean
- The step deviation method or the coding method is used for computing harmonic mean

**The mean of 4, 6, 8, 20 and 50 is _______.**- 17.2
- 17.4
- 17.6
- 17.8

**Answer: a**

**Answer: c**

**Answer: b**

**Answer: a**

**Answer: b**

**Answer: a**

**Answer: b**

**Answer: c**

**Answer: d**

**Answer: d**

**Answer: a**

**Answer: c**

**Answer: b**

**Answer: a**

**Answer: c**