INDEX

STATISTICAL DESCRIPTION 1
OF DATA to
1A (Introduction to Statistics) 27

28
SAMPLING THEORY to
1B 40

MEASURES OF CENTRAL 41
TENDENCY to

2A (Averages of First Order) 55

56
MEASURES OF DISPERSION
to
(Average of Second Order)
2B 66

67
CORRELATION ANALYSIS to
3A 78

79
REGRESSION ANALYSIS to
3B 88
 89
INDEX NUMBERS to
4 100

101
PROBABILITY
to
5A Theory of Chance
115

116
RANDOM VARIABLE
to
Theory of Expectation
5B 123

124
THEORETICAL
to
DISTRIBUTION
6 148

149
APPENDIX & LOGARITHM
to
TABLES
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 CA FOUNDATION STATISTICS

STATISTICAL DESCRIPTION OF DATA

1A (Introduction to Statistics)

Introduction:

The word “STATISTICS” has its origin from the following:

• Latin - STATUS
• German - STATISTIK
• French - STATISTIQUE
• Italian - STATISTA

Statistics in India
• Kautilya recorded birth and death in Arthashastra during Chandragupta Maurya’s
regime.
• Abul Fazal, during Akbar’s regime, recorded agriculture in the book Ain-i-Akbari.
“STATISTICS” DEFINED

IN SINGULAR SENSE IN PLURAL SENSE
It is defined as the scientific method By Statistics, we mean aggregate
of collecting, presenting, analyzing of facts which are known as
the data and drawing inference from “DATA” (Singular Datum).
the same.

Features of Statistics:
a) Statistics deals with masses and not individuals.

b) Statistics deals with quantitative data . Qualitative data are also to be expressed in
quantitative terms.

c) It is aggregate of facts (plural sense).

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d) It refers to scientific methods of analyzing data.(Singular Sense)

e) It is science as well as an art.

f) Data are affected by multiplicity of causes.

g) Data should be collected in a systematic manner and for a pre-determined purpose.

h) Data should be comparable.

i) All Statistics are Numerical Statements but all Numerical Statements are not
statistics

APPLICATION OF STATISTICS
Statistics is used in
a) Mathematics

b) Economics

c) Accountancy

d) Auditing

e) Business and industry

f) Social Science

g) Medical Sciences & Biology

h) Different Statistical techniques used in Business, Economics and Industry.

i) Management.

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LIMITATIONS OF STATISTICS
i. Statistics does not study qualitative phenomenon directly.

ii. Statistics does not study individuals.

iii. Statistical laws are not exact.

iv. Statistical data are liable to be misused.

v. Statistics results are true on the average sense only. They are not exact

FEW TERMS COMMONLY USED IN STATISTICS.

i. Data : It is a collection of observations, expressed in numerical figures, obtained by
measuring or counting.

ii. Population : It is used to denote the totality of the set of objects under considering.

iii. Sample : A sample is a selected no. of individuals each of which is a member of

the population. It is examined with a view to assessing the characteristics of the
population.

iv. Characteristic : A quality possessed by an individual person, object or item of a

population is called a characteristic e.g. Height, age, nationality, etc.

v. Variable & Attribute : Measurable characteristics which are expressed numerically

in terms of some units are called as variables or variates e.g. age, height, income,
etc. Non-measurable characteristics is a qualitative characteristic which is called as
attribute e.g. sex, marital status, employment status, etc.

vi. Continuous & Discrete Variable : A variable which can assume for its value any real
quantity within a specified interval is a continuous variable e.g height, weight etc
and the variables which can assume only whole numbers are discrete variables
eg :-. number of members in the family, no of accidents etc.

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CLASSWORK SECTION

Related MCQ’s:
1. Which of the following statement is true?
a) Statistics is derived from the French word “Statistik”.
b) Statistics is derived from the Italian word “Statista”.
c) Statistics is derived from the Latin word “Statistique”.
d) None of these

2. Statistics is considered with:

a) Qualitative information b) Quantitative information
c) Both a) and b) d) Either a) or b)

3. Which of the following would you regard as discrete variable:

a) height b) weight
c) number of persons in a family d) wages paid to workers

4. An attribute is:
a) A measurable characteristics b) A quantitative characteristics
c) A qualitative characteristic d) All of the above

5. Annual income of a person is:

a) An attribute b) A continuous variable
c) A discrete variable d) Either b) or c)

 A STATISTICAL ENQUIRY PASSES THROUGH THE FOLLOWING PHASES :

1. COLLECTION OF DATA

2. SCRUTINY OF DATA

3. CLASSIFICATION OF DATA

4. PRESENTATION OF DATA1.
CO

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LLECTION OF DATA (DATUM IN SINGULAR)

Data : Data are aggregate of facts i.e. Quantitative information about characteristic
under study.
Types of Data

Primary Data Secondary Data

These data are collected for 1. Secondary Data are numerical
a specific purpose directly information which have been
from the field of enquiry. previously collected as primary data
These are original in nature by some agency for a specific purpose
but are now complied from that
source for use in a different
connection. Sources of Secondary
Data.
i. Publications of Central and
State Governments, of Foreign
Governments, and
international bodies like ILO,
UNO, UNESCO, WHO, etc.
ii. Publications of various
Chambers of Commerce, Trade
Associations, Co-operative
Societies, etc.

Methods of Collecting Primary Data

Direct Observation Method Mailed Questionnaire Method Interview Method

Direct Personal Interview Indirect Interview Telephonic Interview

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(1) DIRECT OBSERVATION METHOD:

It is the best method of data collection, but time consuming, laborious and covers
only a small area.

(2) MAILED QUESTIONNAIRE METHOD:

Under this method, data are collected by means of framing a well drafted and
properly sequenced questionnaire covering all the important aspects of the problem
under study and sending them to the respondents. (Although a wide area can be
covered but non-response is maximum under this method).

(3) INTERVIEW METHOD:

a. Direct Personal Interview Method:
Under this method, the investigator collects information directly from the
respondents. In case of natural calamities like earthquake, cyclone or epidemic
the data can be collected much more quickly and accurately.

b. Indirect Interview Method:

It is used when the respondents can’t be reached directly and the data
is collected from the persons associated with the problems. E.g. in case of
accidents this method is used.
Note : The above two methods are more accurate but not suitable for large
area.

c. Telephonic Interview Method:

It is quick, less expensive and covers largest area. Under this method, the
researcher himself gathers information by contacting the interviewee over the
phone. It is less consistent compared to the other two methods. Amount of
non –response is maximum under this method.

Related MCQ’s:
6. A statistical survey may either be ________ purpose or ________ purpose survey.
a) general, specific
b) general, without
c) all, individual
d) none of the above

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7. Data originally collected for an investigation are known as:

a) primary data
b) secondary data
c) both primary and secondary data
d) none of the above

8. Primary data are:

a) always more reliable compared to secondary data
b) less reliable compared to secondary data
c) depends upon the care with which data have been collected
d) depends upon the agency collecting the data

9. In case of a rail accident, the appropriate method of data collection is by :

a) Direct interview
b) Personal interview
c) Indirect interview
d) All of the above

2. SCRUTINY OF DATA
It means checking the data for accuracy & consistency. Intelligence, patience &
experience is used by scrutinizing the data.

3. CLASSIFICATION OF DATA
Definitions : When the items / individuals are classified, according to some common
non-measurable characteristics processed by them, they are said to form a statistical
class, and when they are classified according to some common measureable
characteristics processed by them, they are said to form a statistical group.

Types of Classifications

Geographical (or) Chronological (or) Qualitative (or) Quantitative(or)

Spatial Temporal or Ordinal Cardinal
i.e. Areawise Time Series i.e.
on the basis of time

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10. The primary rules that should be observed in classification:

I. As far as possible, the class should be of equal width.
II. The classes should be exhaustive.
III. The classes should be un-ambiguously defined.
a) Only I and II
b) Only II and III
c) Only I and III
d) All I, II and III

4. Presentation of Data

Presentation of Data

Textual Tabular Graphical

Textual
Textual Presentation : It is in written form. It is simple but dull, monotonous &
comparison is not possible

Tabular
Tabular Presentation : Presentation of data with the help of a statistical table having
rows & columns.

Advantages of Tabulation are as follows:

1. Complicated data can be represented.
2. It is a must for diagrammatic representation.
3. Statistical analysis is not possible without tabulation.
4. It facilitates comparison between rows & columns.

3. DIFFERENT PARTS OF A TABLE (4 Parts)

TABLE

STUB CAPTION BODY BOXHEAD

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1 Stub : Stubs are the headings or designations for the horizontal rows.

2. Captions : Captions are the headings or designations for vertical columns.

3. Body : The arrangement of the data according to the descriptions given in the captions
(columns) and stubs(rows) forms the body of the table. It contains the numerical
information which is to be presented to the readers and forms the most important
part of the table.
4. Box-head: The entire upper part of the table is known as box-head.

Other Parts :
5. Title : Every Table must be given a suitable title, which usually appears at the top
of the table (below the table number or next to the table number). A title is meant
to describe in brief and concise form the contents of the table and should be self-
explanatory.

6. Table Number :

7. Head Note :

8. Foot Note :

9. Source Note

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FORMAT OF A BLANK TABLE

Title
[Head Note or Prefatory Note (if any)]

Foot Note :

Source Note :

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Types of Tabulatio
Types of Tabulation

Simple Complex
Simple Tabulation : In this type the number or measurement of the items are placed
below the headings showing the characteristics.

Complex Tabulation : In this type each numerical figure in the table is the value of
the measurement having the characteristics shown both by the column and the row
headings.

Related MCQ’s:

11. When the accuracy in presentation is more important than the method of presentation
it is done through:
a) Textual b) Diagrammatic
c) Tabular d) Either b) or c)

12. The unit of measurement in tabulation is shown in

a) box head b) body c) caption d) stub.

13. For tabulation, ‘caption’ is :

a) the lower part of the table.
b) the main part of the table.
c) the upper part of the table.
d) the upper part of a table that describes the column and sub-column.

14. ‘Stub’ of a table is the

a) right part of the table describing the columns.
b) left part of the table describing the columns.
c) right part of the table describing the rows
d) left part of the table describing the rows.

15. A table has _____ parts.

a) Two b) Three c) Four d) Five

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Diagrammatic Representation of Data

1. Diagrammatic Representation are mainly done by charts (or graphs) and figures.

2. A chart or graph is inferior to a table or numbers as a method of presenting

data, since one can get only approximate idea from it, but its advantage is that it
emphasizes certain facts and relations more than numbers do.

Advantages :
1. It is more attractive and informative to an ordinary person.

2. A complex problem can sometimes be clarified easily by a diagram.

3. It reveals the hidden facts which are not apparent from the tabular presentation.

4. Two or more sets of values can be compared very easily from a diagram.

5. It shows the relation of the parts to the whole.

Types of Diagrams

Without Frequency With Frequency (Frequency Curves)

1. Line Chart or Line Graph or Line 1. Histogram or Area Diagram

Diagram or Historigram Chart (one (Two dimensional)
dimensional)
2. Bar Diagram or Bar Chart 2. Frequency Polygon
(one dimensional) (Two dimensional)
3. Pie Chart 3. Frequency Curve
(Two dimensional) (Two dimensional)
4. Cumulative Frequency Polygon or
Ogive (Two dimensional)

Each of the Diagram is described below:

Line Diagram :
It is used for time related data (Time series).
When there is wide range of fluctuations, logarithmic or ratio charts are used.

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Multiple Line Chart :

It is used for representing 2 or more related series expressed in same units.

Multiple Axis Chart :

Multiple Axis Chart is used for representing two or more related series expressed in
different units.

Semi-Logarithmic Graph or Ratio Chart :

Semi-Logarithmic Graph or Ratio Chart is a line diagram drawn on a special type
of graph paper which shows the natural scale in the horizontal direction and the
logarithmic or ratio scale in the vertical direction. The semi-log graph is used where
ratios of change are more important than absolute amounts of change.

Bar Diagram
1. Vertical Bar Chart ( or Colum Chart) :
This is generally used to represent a time series data or a data which is classified by
the values of the variable. (Measurable characteristics).

2. Horizontal Bar Chart :

This is used to represent data classified by attributes or data varying over space.
(i.e. non-measurable characteristics).

3. Grouped or Multiple or Compound Bar Chart):

These are used to compare related series.

4. Component /Sub divided Bar Chart:

These are used for representing the data divided into different components

5. Percentage Bars :
Percentag e Bars are particularly useful in statistical work which requires the
portrayal of relative changes.

6. Deviation Bars
Deviation Bars are popularly used for representing net quantities – excess or deficit i.e. net
profit, net loss, net exports or imports, etc. Such bars can have both positive and negative
values. Positive values are shown above the base line and negative values below it.

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7. Broken Bars
In certain series there may be wide variations in values – some value may be very
small and others very large. In order to gain space for the smaller bars of the series,
larger bars may be broken.

PIE CHART / PIE DIAGRAM / CIRCLED DIAGRAM

This is a very useful diagram to represent data which are divided into a number of
categories. The diagram consists of a circle divided into a number of sectors whose
areas are proportional to the values they represent. Again the areas of the sectors
are proportional to their angles at the centre. Therefore, ultimately the angles of the
different sectors are proportional to the values of different components. The total
value is represented by the full circle. Comparison among the various components
or between a part and the whole of data can be made easily by this diagram.

Example :
Draw a pie chart to represent the following data on the proposed outlay during a
Five-year Plan of a Government :

Items ` (in crores)

Agriculture 12,000
Industry & Minerals 9,000
Irrigation & Power 6,000
Education 8,000
Communication 5,000

Calculations for the angles of the pie chart

Items Outlay (in crores `) Angles (in egrees)
Agriculture 12,000 108
Industry & Minerals 9,000 81
Irrigation & Power 6,000 54
Education 8,000 72
Communication 5,000 45
Total 40,000 360

Working Note : 40,000 is represented by 3600

1,000 is represented by 360 = 90

40

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 CA FOUNDATION STATISTICS

12,000 is represented by 12 x 9 = 1080

9,000 is represented by 9 x 9 = 810

6,000 is represented by 6 x 9 = 540

8,000 is represented by 8 x 9 = 720

And 5,000 is represented by 5 x 9 = 450

DIAGRAMMATIC/GRAPHICAL REPRESENTATION OF FREQUENCY DISTRIBUTION

1. Histogram or Area Diagram

i) It consists of a set of adjoining vertical rectangles whose widths represent
the class intervals and the heights represent the corresponding frequencies
(for equal class width) and frequency densities (for unequal class width).
Boundaries are plotted along the horizontal axis and the frequencies (or
frequency densities) are plotted along the vertical axis
ii) The area of each rectangle is proportional to the frequency of the corresponding
class.
iii) Mode is calculated graphically from Histogram.
iv) It helps us to get an idea about the frequency curve and frequency polygon.
v) Comparison among the frequencies can be made for different class intervals.

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Example
The monthly profits in rupees of 100 shops are distributed as follows:
Profits per Shop 0-100 100-200 200-300 300-400 400-500 500-600
No. of Shops 12 18 27 20 17 6
Draw the histogram to the data and hence find the modal value.

In the histogram, the top right corner of the highest rectangle is joined by a straight
line to the top right corner of the preceding rectangle. Similarly, top left corner
of the highest rectangle is joined to the top left corner of the following rectangle.
From the point of intersection of these two lines a perpendicular is drawn on the
horizontal axis. The foot of the perpendicular indicates the Mode. This is read from
the horizontal scale and the modal value is found to be 256 (in `) approximately.

Profits (`)

2. Frequency Polygon and Frequency Curve

i) In this method, the frequency of each class is plotted against the mid-value
of the corresponding class. The points thus obtained are joined successively
by straight lines. The polygon is then completed by joining two end-points to
the mid-values of two empty classes assumed in either side of the frequency
distribution.

ii) Frequency polygon can be obtained from the histogram by joining the successive
mid-points of the top of the rectangles which constitute the histogram and the
polygon is completed in the same manner as before.

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 CA FOUNDATION STATISTICS

iii) If in a frequency distribution the widths of the classes are reduced, then the
number of classes will increase. As a result the vertices of a frequency polygon
will come very close to each other. In that case, if we join the points by smooth
free hand line instead of straight lines, a smooth curve is obtained which is
known as a Frequency Curve.

iv) Frequency Curve is a limiting curve case of frequency polygon.

3. Cumulative Frequency Polygon / Ogive Curve

1. It is a graphical representation of cumulative frequency distribution.
2. Median and all other partition values are calculated from ogives.
3. There are two types of ogives (i) Less Than Ogive (ii) More Than Ogive.
4. IN LESS THAN OGIVE LESS THAN CUMULATIVE FREQUENCIES ARE USED.
AND IN CASE OF MORE THAN OGIVE, MORE THAN CUMULATIVE FREQUENCIES
ARE USED AND THE OGIVE CURVE LOOKS LIKE ELONGATED “S”. THESE ARE ALSO
KNOWN AS “S” CURVE.

Example
Draw the cumulative frequency diagram (both more-than and less-than ogive) of
the following frequency distribution and locate graphically the Median:
Marks-Group 0-10 10-20 20-30 30-40 40-50 50-60 60-70 Total
No. of Students 4 8 11 15 12 6 3 59

Calculation for Cumulative Frequencies

Class Boundary Cumulative Frequency

Less than More than
0 0 59
10 4 55
20 12 47
30 23 36
40 38 21
50 50 9
60 56 3
70 59 0

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Class Boundary

Less than and More than ogive of a frequency distribution

From the graph the median is found to be 34.5.

4. Other Frequency Curves

1. Bell Shaped (Symmetrical Curve):
The most commonly used frequency curve use for the distribution of height, weight,
profit, etc.
i. It is the limiting form of histogram and frequency polygon
ii. The area under the curve is taken to be unity.
iii. It enables us to understand symmetry of the distribution.

2. U Shaped Curve
In this curve, the frequency is minimum at the central part, and slowly but steadily
it reaches to two extremities. The distribution of people travelling on streets will be
exhibited through this kind of curves.

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3. J Shaped Curve:
The J Shaped Curve starts with the minimum frequency and then gradually reaches
its maximum frequency at the other extremity. The distribution of commuters in a
particular time interval will be exhibited through this kind of curves.

Diagram

4. Asymmetrical Curves
(A) In case of symmetrical curves or bell shaped curves the
(i) Mean (M) = Median (Me) = Mode (Mo)
ii) Skewness = 0

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(B) In case of Asymmetrical curves Mean, Median & Mode are unequal and accordingly
skewness 0
Asymmetrical Curves

Positively Skewed Negatively Skewed

(Mean > Median > Mode) (Mean < Median < Mode)
(i) Frequency curve as a longer (i) Frequency curve as a longer
tail to the right tail to the Left

Related MCQ’s:

16. The most common form of diagrammatic representation of a grouped frequency

distribution is :
a) ogive b) histogram
c) frequency polygon d) none of the above

17. Frequency density is used in the construction of

a) histogram b) frequency polygon
c) ogive d) none of the above

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18. When the width of all classes is same, frequency polygon has not the same area as
the Histogram :
a) true b) false
c) both a) and b) above d) none of the above

19. The breadth of the rectangle is equal to the length of the class-interval in
a) ogive b) histogram
c) both a) and b) above d) none of these.

20. From which graphical representation, we can calculate partition values?

a) Lorenz Curve b) Ogive Curve
c) Histogram d) None of these

21. Arrange the dimensions of Bar Diagram, Cube Diagram, Pie Diagram in sequence.
a) 1, 3, 2 b) 2, 1, 3 c) 2, 3, 1 d) 3, 2, 1

FREQUENCY DISTRIBUTION

1. There are two types of frequency distribution

i. For discrete variable it is known as simple or ungrouped or discrete frequency
distribution.
ii. For continuous variable it is known as continuous or grouped frequency
distribution.

2. SOME IMPORTANT TERMS

i) Frequency : (Tally Mark)
Frequency of a value of variable is the number of times it occurs in a given
series of observations. A Tally Mark ( / ) is put against the value when it occurs
in the raw data. Having occurred four times, the fifth occurrence is represented
by putting a Cross Tally Mark ( \ ) on the first four tally marks.

ii) Range : Range of a given data is the difference between the largest measure
and the smallest measure in a given set of observations.

iii) Class Interval (or class) : A large number of observations having wide range, is
usually classified into number of groups. Each of these groups is known as a class.

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iv) Class frequency, Total Frequency : The number of observations which is class
contains, is known as its class frequency. The total number of observations in
the frequency distribution is known as ‘Total Frequency’.

v) Class Limit : The two ends of a class interval are known as class limits of that
class. The smaller of the two ends is called LOWER Class Limits and the greater
is called Upper Class Limit. These classification are called non-overlapping or
mutually inclusive classification.

vi) Class Boundaries : When we consider a continuous variable, the observation are
recorded nearest to a certain unit. For example, let us consider the distribution
of weight of a group of persons. If we measure the weight nearest to the pound,
then a class interval like (100-109) will include all the observations between
99.5 lb to 109.5 lb. Similarly, all the observations between 109.5 lb to 119.5
lb will be included in the class interval (110- 119). For the class interval (100-
109), 99.5 is the lower class-boundary and 109.5 is the upper class boundary.
For the class (110-119), the lower and upper class boundary respectively 109.5
and 119.5. These classifications are called overlapping or mutually exclusive
classification.

Class boundaries can be calculated from the class limits by the following rule:

Lower Class boundary = Lower Class limit -

Upper Class boundary = Upper Class limit +

where, d is the common difference between the upper limit of a class and the
lower limit of the next class. d/2 is called the Correction Factor

vii) Mid-value ( or class mark or mid point or class point) :

Mid-value is the mid-Point of the class interval and is given by Class Mark=

viii) Width or Size : This is the length of a class and is obtained by the difference
between the upper and lower class boundaries of that class.

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Class width / size = Difference between 2 successive LCL’s / UCL’s

= Difference between 2 successive LCB’s / UCB’s
= Difference between 2 successive mid values if all the
class are of the same width.
= Difference between UCB and LCB
Note : Class width ≠ UCL-LCL

ix) Frequency Density : This is defined as the frequency per unit width of the class.

Frequency Density =

It measures the concentration of the frequency of different classes.

x) Relative Frequency : This is the ratio of the class frequency to the total frequency,
i.e. Relative frequency =

• Relative Frequency of any class lies between 0 and 1

xi) Percentage Frequency :

= or Relative frequency x 100

CUMULATIVE FREQUENCY DISTRIBUTION

1. There is another type of frequency distribution known as Cumulative Frequency
Distribution where the frequencies are cumulated.
2. This distribution is prepared from the grouped frequency distribution by taking the
end values (ie. class boundaries and not class limits)
3. Number of observation less than or equal to the class boundaries are called “Less-
Than” Type Cumulative Frequency Distribution.
4. Number of observation greater than or equal to class boundaries are called “ More-
Than” Type Cumulative Frequency Distribution.
5. It can be made both for discrete series i.e. ungrouped data as well as for grouped
data.

Example 2 :
From the following frequency distribution construct the cumulative frequency distribution:
Weights of 60 students in a class

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Weights of 60 students in a class

Weight (kg) Frequency

30-34 3
35-39 5
40-44 12
45-49 18
50-54 14
55-59 6
60-64 2
Total 60

Cumulative Frequency Distribution of weights of 60 students

Class Boundaries Cumulative Frequency
(Weight in kg)
Less Than More Than
29.5 0 60
34.5 3 57
39.5 8 52
44.5 20 40
49.5 38 22
54.5 52 8
59.5 58 2
64.5 60 0

Otherwise
Cumulative Frequency Distribution of weights of 60 students
Class Boundaries Cumulative Frequency
(Weight in kg)
Less Than More Than
30-34 3 60
35-39 8 57
40-44 20 52
45-49 38 40
50-54 52 22
55-59 58 8
60-64 60 2
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Here the less than cumulative frequency of the second class is 8. This implies that
there are 8 students whose weights are less than 39.5 kg (the upper boundary of
that class). The more than cumulative frequency of the second class is 57, i.e. there
are 57 students whose weights are more than 34.5 kg(the lower boundary of that
class).

Note : By Cumulative Frequency we usually mean less than type.

Example 3 :
(a) Marks CF (Less than) C.I Frequency
Less than 20 5 10-20 5
Less than 30 18 20-30 13
Less than 40 30 30-40 12
Less than 50 35 40-50 5
---- -----
N= 35 = f

(b) Marks C.I CF (more than) Frequency

More than 20 20-30 35 17
More than 30 30-40 18 8
More than 40 40-50 10 7
More than 50 50-60 3 3
---- ----
CF 35

Related MCQ’s:

22. For determining the class frequency it is necessary that these classes are:
a) Mutually exclusive b) Not mutually exclusive
c) Independent d) None of these

23. Mutually exclusive classification usually meant for

a) an attribute b) a continuous variable
c) a discrete variable d) any of the above

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24. The lower class boundary is :

a) an upper limit to Lower Class Limit
b) a Lower limit to Lower Class Limit
c) both a) and b) above
d) none of the above

25. Relative frequency for a particular class

a) lies between 0 and 1.
b) lies between – 1 and 0.
c) lies between 0 and 1, both inclusive.
d) lies between – 1 to 1.

26. The lower extreme point of a class is called :

a) lower class limit. b) lower class boundary
c) both a) and b) above d) none of the above

27. Frequency Density corresponding to a class interval is the ratio of:

a) Class Frequency to the Total Frequency
b) Class Frequency to the Class Length
c) Class Length to the Class Frequency
d) Class Frequency to the Cumulative Frequency

Theory Answers

1 b 7 a 13 d 19 b 25 a
2 c 8 a 14 d 20 b 26 b
3 c 9 c 15 d 21 a 27 b
4 c 10 d 16 b 22 a
5 b 11 c 17 a 23 b
6 a 12 a 18 b 24 b

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Numerical Problems
In 1995, out of the 2,000 students in a college; 1,400 were for graduation and the rest of
Post-Graduation (PG). Out of 1,400 Graduate students 100 were girls, in all there were
600 girls in the college. In 2000, number of graduate students increased to 1,700 out of
which 250 were girls, but the number of PG students fall to 500 of which only 50 were
boys. In 2005, out of 800 girls 650 were for graduation, whereas the total number of
graduates was 2,200. The number of boys and girls in PG classes were equal.

28. When the class intervals are 10 – 19, 20 – 29, 30 – 39, ... .... ... Upper class boundaries
(UCB) and the Upper class limits (UCL) of the 2nd class interval are:
a) 29, 29 b) 20, 29 c) 29.5, 29.5 d) 29.5, 29

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 CA FOUNDATION STATISTICS

1B SAMPLING THEORY

1. Population or Universe
Population in statistics means the whole of the information which comes under the
purview of statistical investigation. It is the totality of all the observations of a statistical
experiment or enquiry.
A population may be finite or infinite according as the number of observations or items in
it are finite or infinite. The population of weights of students of class XII in a government
school is an example of a finite population. The population of pressure at different points
in the atmosphere is an example of an infinite population.

Types of Population:
a) Finite Population: When the items in the population are fixed and limited.
Example : No. of students in the class
b) Infinite Population: If a population consist of infinite no. of items its an infinite
population. If a sample is known to have been drawn from a continuous probability
distribution, then the population is infinite. Example : Population of all real numbers
lying between 5 and 20.
c) Real Population: A Population consisting of the items which are all present physically
is termed as real population.
d) Hypothetical Population: The Population consists of the results of the repeated
trails is named as hypothetical population The tossing of a coin repeatedly results
into a hypothetical population of heads and tails.

2. Sample
A part of the population selected for study is called a sample. In other words, the
selection of a group of individuals or items from a population in such a way that this
group represents the population, is called a sample.
1. Sampling is a process whereby we judge the characteristics or draw inference
about the totality or Universe (known as population) on the basis of judging the
characteristics of a selected portion taken from that totality (known as sample).

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 CA FOUNDATION STATISTICS

2. Sample: Sample is the part of population selected on some basis it is a finite subset
of the population.
3. Sample Units : Units forming the samples are called Sample Units.
4. Sample Frame : A complete list of sampling units is called Sample Frame
n
5. Sample Faction : is called Sampling Fraction where n = Sample Size and
N
N = Population Size.
6. Complete enumeration or census : In case of enumeration, information is collected
for each and every unit. The aggregate of all the units under consideration is called
the ‘population’ or the ‘universe’. The results are more accurate and reliable but it
involves lot of time, money and man power

3. Parameter and Statistic

There are various statistical measures in statistics such as mean, median, mode, standard
deviation, coefficient of variation etc. These statistical measures can be computed both
from population (or universe) data and sample data.
Parameter : Any statistical measure computed from population data is known as
parameter.
Statistics : Any statistical measure computed from sample data is known as statistic. Thus
a parameter is a statistical measure which relates to the population and is based on
population data, whereas a statistic is a statistical measure which relates to the sample
and is based on sample data. Thus a population mean, population median, population
variance, population coefficient of variation etc., are all parameters. Statistic computed
from a Sample such as sample mean, sample variance etc.

Notations
Statistical Measure Population Sample
Mean µ x
Standard deviation σ s
Proportion P p
Size N n

Related MCQ’s:
1. The aggregate or totality of statistical data forming a subject of investigation is
known as :
a) Sample b) Population
c) Both a) and b) above d) None of the above

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 CA FOUNDATION STATISTICS

2. If a sample is known to have been drawn from a continuous probability distribution

then the population is .
a) Large b) Finite
c) Infinite d) Nothing can be said about the population

3. The possibility of reaching valid conclusions concerning a population by means of a

population by means of a properly chosen sample is based on which of the following
laws?
a) Law of Inertia b) Law of Large Number
c) Law of Statistical Regularity d) All of the above

4. When the population is infinite we should use the:

a) Sample Method b) Census Method
c) Either Sample or Census Method d) None of the above

5. A border patrol checkpoint which stops every passenger van is utilizing:

a) simple random sampling. b) systematic sampling
c) systematic sampling. d) complete enumeration

6. A population consisting of all real numbers is an example of:

a) an infinite population b) a finite population
c) an imaginary d) none of the above

4. Basic principle of Sample Survey

a) Law of Statistical Regularity : It states that a reasonably larger number of items
selected at random from a large group of items, will on the average, represent the
characteristics of the group.
b) Law of Inertia of Large Numbers : This law states that other things same, as the
sample size increases, the results tend to be more reliable and accurate.
c) Principle of Optimization : The principle of optimization ensures that an optimum
level of efficiency at a minimum cost or the maximum efficiency at the given level
of cost can be achieved with the selection of an appropriate sampling design.
d) Principle of Validity : The principle of validity states that a sampling design is valid
only if it is possible to obtain valid estimates and valid tests about population
parameters. Only a probability sampling ensures this validity.

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Related MCQ’s:

7. Law of Statistical Regularity states that:

a) A sample of reasonably small size when selected at random, is almost not
sure to represent the characteristics of the population
b) A sample of reasonably large size when selected, is almost not sure to represent
the characteristics of the population.
c) A sample of reasonably large size when selected at random, is almost sure to
represent the characteristics of the population, on an average
d) None of the above

8. Law of Inertia states that:

a) Sample of high size show a high degree of stability.
b) Sample of low size shows a high degree of stability.
c) Results obtained from sample of high size are expected to be very far.
d) None of the above.

9. Sampling error increases with an increase in the size of the sample.

a) The above statement is true.
b) The above statement is not true.
c) Sampling error do not depends upon the sample size
d) None of the above

5. Sampling and Non sampling Errors

i) Sampling Errors: Sampling Errors have their origin in sampling and arise due to the
fact that only a part of the population (i.e. sample) has been used to estimate
population parameters and draw inference about them. As such the sampling errors
are totally absent in a census enumeration.
Sampling errors can never be completely eliminated but can be minimize by choosing a proper
sample of adequate size.
ii) Non Sampling Errors or Bias: As distinct from sampling errors, the non-sampling
errors primarily arise at the stages of observation, approximation and processing of
the data and are thus present in both the complete enumeration and the sample survey.
These error usually arise due to faulty planning, defective schedule of questionnaire
from non-response from the respondents.

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 CA FOUNDATION STATISTICS

iii) Sampling error is totally absent in “Complete Enumeration” or “Census”

But, Non-Sampling errors are present in both “Complete Enumeration” and
“Sample survey”
• Parameter is a statistical measure on population. Statistic is a statistical
measure on sample.

Related MCQ’s:

10. Bias is also known as:

a) Sampling Error b) Non-Sampling Error
c) Error d) None of the above

11. Sampling error are:

a) Particularly detectfull
b) Can be corrected
c) Arise because the information collected relates only to a part of the population.
d) All of the above.

12. _Can occur in census.

a) Standard Error b) Sampling Error
c) Bias d) None of the above

13. “Sampling errors are present both in census as well as a sample survey.’’ -State
whether the given statement is correct or not.
a) Correct b) Incorrect
c) Nothing cannot be said d) None of the above

6. Sampling Distribution of a Statistic

From a population of size N, number of samples of size n can be drawn. These samples
will give different values of a statistic. E.g. if different samples of size n are drawn from
a population, different values of sample mean are obtained. The various values of a
statistic thus obtained, can be arranged in the form of a frequency distribution known as
Sampling Distribution. Thus we can have sampling distribution of sample mean x ,
sampling distribution of sample proportion p etc.

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Errors in Sampling
Any statistical measure say, mean of the sample, may not be equal to the corresponding
statistical measure (mean) of the population from which the sample has been drawn.
Thus there can be discrepancies in the statistical measure of population, i.e., parameter
and the statistical measures of sample drawn from the same population i.e., statistic.
These discrepancies are known as Errors in Sampling.
Standard Error of a Statistic
Standard error is used to measure the variability of the values of a statistic computed from
the samples of the same size drawn from the population, whereas standard deviation is
used to measure the variability of the observations of the population itself.
The standard deviation of the sample statistics is called standard error of that statistic.
E.g. if different samples of the same size n are drawn from a population, we get different
values of sample mean x . The S.D. of x . is called standard error of x . . It is obvious that
the standard error of x . will depend upon the size of the sample and the variability of
the population.
σ
i) Standard error of sample mean SE ( x ) =

σ=Population S.D
and s=Sample S.D

ii) Standard error of proportion SE (p) =

Where P=Population proportion P=Sample proportion

If i) Population size is Finite and the Sampling Fraction

And ii) Samples are drawn Without Replacement(SRSWOR)

Then , each of the above formula for Standard Error will be multiplied by the factor

( Finite Population correction or Finite Population Multiplier)FPC

• Formula for standard Error when i) n<30( small sample)

ii) Population S.D σ is unknown in such a case SE ( x )=

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The following table will provide us a better understanding of the situations while
calculating SE ( x )

Sample Size Parameter Formula

Large (n ≥ 30) SD is known

Large (n ≥ 30) SD is unknown

Small (n < 30) SD is known

Small (n < 30) SD is unknown

Rule of multiplying FPC will remain unaltered in a cases

Summary
Concept of Sampling Distribution of Statistic and Standard Error:
 Samples can be drawn with or without replacement
 Probability distribution of a statistic is called sampling of statistic. Example:
sampling distribution of ( x )., sampling distribution of (p)
 Standard deviation of the sampling distribution of the sampling is called Standard
Error of statistic
 As sample size increases standard error decreases proportionately.
 Precision of the sample is reciprocal to standard Errors..
 Standard Error measures sampling fluctuations. i.e fluctuations in the value of
statistics due to sampling

Related MCQ’s:

14. Values of a particular statistic with their relative frequencies will constitute the of
the concerned statistic.
a) Probability Distribution
b) Sampling Distribution
c) Theoretical Distribution
d) None of these

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15. The population standard deviation describes the variation among elements of the
universe, whereas, the standard error measures the:
a) variability in a statistic due to universe
b) variabillity in a statistic due to sampling
c) variablity in a parameter due to universe
d) variablity in a statistic due to parameter

16. Standard error can be described as:

a) The error committed in sample survey
b) The error committed in estimating a parameter
c) Standard deviation of a statistic
d) The error committed in sampling.

17. The reciprocal of the standard error is:

a) Precision of the sample b) Error of the sample
c) Error of the Universe d) None of the above

18. Precision of random sample:

a) increases directly with increase in sample size
b) increases with the increase in sample size
c) increases proportionately with sample size
d) none of these.

19. Sampling Fluctuations may be described as :

a) the variation in the values of a statistic.
b) the variation in the values of a sample.
c) the differences in the values of a parameter.
d) the variation in the values of observations.

7. Types of Sampling

A sample can be selected from a population in various ways. Different situations call for
different methods of sampling. There are three methods of Sampling:
1. Random Sampling or Probability Sampling Method.
2. Non-Random Sampling or Non-Probability Sampling Method.
3. Mixed Sampling.

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1. Random Sampling or Probability Sampling

Random Sampling: Random or Probability sampling is the scientific technique of
drawing samples from (he population according to some laws of chance in which
each unit in the universe or population has some definite pre-assigned probability
of being selected in the sample. It is of two types.
(a) Simple Random Sampling (SRS):
It is the method of selection of a sample in such a way that each and every
member of population or universe has an equal chance or probability of being
included in the sample. Random sampling can be carried out in two ways.
1. Lottery Method: It is the simplest, most common and important method
of obtaining a random sample. Under this method, all the members of
the population or universe are serially numbered on small slips of a
paper. They are put in a drum and thoroughly mixed by vibrating the
drum. After mixing, the numbered slips are drawn out of the drum one by
one according to the size of the sample. The numbers of slips so drawn
constitute a random sample.
2. Random Number Method: In this method, sampling is conducted on the
basis of random numbers which are available from the random number
tables. The various random number tables available are:
a. Trippet’s Random Number Series;
b. Fisher’s and Yales Random Number Series;
c. Kendall and Badington Random Number Series;
d. Rand Corporation Random Number Series;
One major disadvantage of random sampling is that all the members of the
population must be known and be serially numbered. It will entail a lot of
difficulties in case the population is of large size and will be impossible in case
the population is of infinite size.
(b) Restricted Random Sampling:
It is of three types
• Stratified Sampling
• Systematic Sampling
• Multi-stage Sampling
Stratified Sampling: In stratified random sampling, the population is divided into
strata (groups) before the sample is drawn. Strata are so designed that they do
not overlap. An elementary unit from each stratum is drawn at random and
the units so drawn constitute a sample. Stratified sampling is suitable in those

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 CA FOUNDATION STATISTICS

cases where the population is hetrogeneous but there is homogeneity within

each of the groups or strata.
Advantages
(i) It is a representative sample of the hetrogeneous population.
(ii) It lessens the possibility of bias of one sidedness.
Disadvantages
(i) It may be difficult to divide population into homogeneous groups.
(ii) There may be over lapping of different strata of the population which will
provide an unrepresentative Sample.
Systematic Sampling: In this method every elementary unit of the population is
arranged in order and the sample units are distributed at equal and regular
intervals. In other words, a sample of suitable size is obtained (from the orderly
arranged population) by taking every unit say tenth unit of the population.
One of the first units in this ordered arrangement is chosen at random and the
sample is computed by selecting every tenth unit (say) from the rest of the lot.
If the first unit selected is 4, then the other units constituting the sample will
be 14, 24, 34, 44, and so on.
Advantages: It is most suitable where the population units are serially numbered
or serially arranged.
Disadvantages: It may not provide a desirable result due to large variation in
the items selected.
Multi-stage Sampling: In this sampling method, sample of elementary units is
selected in stages. Firstly a sample of cluster is selected and from among them
a sample of elementary units is selected. It is suitable in those cases where
population size is very big and it contains a large number of units.

2. Non-Random Sampling or Non-Probability Sampling Method

A sample of elementary units that is being selected on the basis of personal
judgment is called a non-probability sampling. It is of four types.
• Purposive Sampling;
• Quota Sampling;
• Convenience Sampling;
• Sequential Sampling.
Purposive Sampling: Purposive sampling is the method of sampling by which a
sample is drawn from a population based entirely on the personal judgement of
the investigator. It is also known as Judgement Sampling or Deliberate Sampling. A

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 CA FOUNDATION STATISTICS

randomness finds no place in it and so the sample drawn under this method cannot
be subjected to mathematical concepts used in computing sampling error.
Quota Sampling: In quota sampling method, quotas are fixed according to the basic
parameters of the population determined earlier and each field investigator is
assigned with quotas of number of elementary units to be interviewed.
Convenience Sampling: In convenience sampling, a sample is obtained by selecting
convenient population elements from the population.
Sequential Sampling: In sequential sampling a number of sample lots are drawn one
after another from the population depending on the results of the earlier samples
draw from the same population. Sequential sampling is very useful in Statistical
Quality Control. If the first sample is acceptable, then no further sample is drawn. On
the other hand if the initial lot is completely unacceptable, it is rejected straightway.
But if the initial lot is of doubtful and marginal character falling in the area lying
between the acceptance and rejection limits, a second sample is drawn and if need
be a third sample of bigger size may be drawn in order to arrive at a decision on the
final acceptance or rejection of the lot. Such sampling can be based on any of the
random or non-random method of selection.
Advantages of Random (OR Probability) Sampling
1. Random sampling is objective and unbiased. As a ‘result, it is defensible before
the superiors or even before the court of law. 8
2. The size of sample depends on demonstrable statistical method and therefore,
it has a justification for the expenditure involved.
3. Statistical measures, i.e. parameters based on the population can be estimated
and evaluated by sample statistic in terms of certain degree of precision required.
4. It provides a more accurate method of drawing conclusions about the
characteristics of the population as parameters.
5. It is used to draw the statistical inferences.
6. The samples may be combined and evaluated, even though accomplished by
different individuals.
7. The results obtained can be assessed in terms of probability, and the sample
is accepted or rejected on a consideration of the extent to which it can be
considered representative.
3. Mixed Sampling
Cluster Sampling: Cluster Sampling involves arranging elementary items in a
population into hetrogeneous subgroups that are representative of the overall
population. One such group constitutes a sample for study.

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Related MCQ’s:

20. Simple random sampling is

(a) A probabilistic sampling (b) A non- probabilistic sampling
(c) A mixed sampling (d) Both (b) and (c).

21. Which sampling provides separate estimates for population means for different
segments and also an over all estimate?
(a) Multistage sampling (b) Stratified sampling
(c) Simple random sampling (d) Systematic sampling

8. SAMPLING WITH REPLACEMENT (SRSWR)

While selecting the units for a sample, when a unit of sample selected is replaced before
the next unit is selected then it is called sampling with replacement.
In this case the total number of samples that can be drawn = (N)n

For E.g.: Let Population = {a, b, c}

N = 3, let n = 2

No. of samples = (N)n = (3)2 = 9

No. of samples = {(a, b) (a, c) (b, c) (b, a) (c, a) (c, b) (a, a) (b, b) (c, c)}

9. SAMPLING WITHOUT REPLACEMENT (SRSWOR)

While selecting the units for a sample, when a unit of sample is selected but not replaced
before the next unit is selected then it is called Sampling Without Replacement.
In this case the total number of samples that can be drawn =
For E.g.: Let population = {a, b, c}
N = 3, let n = 2

No. of samples =
No. of samples = {(a, b), (a, c), (b, c)}

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 CA FOUNDATION STATISTICS

Related MCQ’s:

22. In simple random sampling with replacement, the total number of possible sample
with distinct permutation of member is:
(N = Size of Population, n = Sample size)
a) N x n b) Nn c) N d) n

23. In simple random sampling without replacement, the total number of possible
sample with distinct permutation of member is:
(N = Size of Population, n = Sample size)
a) Nn b) P(N, n) c) C(N,n) d) None of the above

Theory Answers

1 b 7 c 13 b 19 a
2 c 8 a 14 b 20 a
3 d 9 b 15 b 21 b
4 a 10 b 16 c 22 b
5 d 11 d 17 a 23 c
6 a 12 c 18 c

Note : Students shall workout in the class for prof

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 CA FOUNDATION STATISTICS

2A
MEASURES OF CENTRAL TENDENCY
(Averages of First Order)

INTRODUCTION:
• Central tendency is defined as the tendency of the data to concentrate towards the central
or middle most region of the distribution.

• In other words, Central Tendency indicates average.

• Any average is a representative value of the entire distribution value

• Average discovers uniformity in variability.

• The tendency of the variables to accumulate at the center of the distribution (data) is
known as measures of central tendency.

• Measures are popularly also known as averages.

Average

Mathematical Avg. Positional Avg.

A. M G. M H. M Median Mode

The criteria for Ideal Measures of Central Tendency

1. It should be simple to understand. (Mean, Median & Mode are easy to compute)

2. It should be based on all the observations. (AM,GM,HM are based on all the observations)

3. It should be rigidly defined (except Mode).

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 CA FOUNDATION STATISTICS

4. It should not be affected by extreme values ( Median & Mode are not affected by
extreme values.

5. It should have sampling stability or it should not be affected by sampling fluctuations.

(A.M, G.M, H.M. not affected).

6. It should be capable of further algebraic treatment. (AM,GM,HM)

ARITHMETIC MEAN
• It is the best measure of central tendency and most commonly used measure
• The only drawback of this measure is that it gets highly affected by presence of extreme
values in the distribution.
• Calculation of AM
1. For Simple series: A.M. =

2.

3. For Grouped Frequency Distribution:

a) Direct Method

Where, x = mid - values or class marks

b) Method of Assumed Mean using Step Deviation (By changing of origin and scale)

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 CA FOUNDATION STATISTICS

Where,
X = mid-values or original values if it is a discreet series
a = Assumed Mean i.e., a value arbitrarily chosen from mid-values or any other
values
I = class width or any arbitrary value

PROPERTIES
1. If all values of the variable are constant, then AM is constant.

2. ; Thus, Sum of the observations = (no. of observations) x (average).

3. Sum of deviations of values from their arithmetic mean is always zero.

4. When the values of x are equi-distant, then AM =

5. If the frequencies of variable increases or decreases by the same proportion, the value of
AM will remain unaltered.

6. Weighted AM of first “n” natural numbers, when the values are equal to their
corresponding weights, will be given by

7. Sum of squares of deviation is minimum when the deviation is taken from AM.

8. AM is dependent on the change of origin and scale.

If Y = a bx,
then,

9. Formula for calculating Combined Mean is given by:

Where,
= mean of the first group
= mean of the second group
= number of samples in the first group
= number of samples in the second group

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GEOMETRIC MEAN (GM)

1.

2.

3. = Product of the observation

4. It is capable of further algebraic treatment.

5. It is less affected by sampling fluctuations compare to mode and median.

6. It is less affected by extreme values compare to AM.

7. GM cannot be calculated if any variable assumes value 0 or negative value.

8. GM is particularly useful in cases where we have to find out average rates or ratios of
quantities which are changing at a cumulative rate, i.e., the change is related to the
immediate preceding data. For example, average rate of depreciation by WDV method or
average rate of growth of population.

9. GM is extensively used in the construction of index numbers.

10. GM is the most difficult average to calculate and understand because it involves the
knowledge of logarithms.

11. Logarithm of GM of “n” observations is equal to the AM of the logarithm of these “n”
observations.

12. GM is based on all observations

13. If all the observations assumed by a variable constant, say K, then the GM of the
observations is also K

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 CA FOUNDATION STATISTICS

14. GM of the product of two variables is the product of their GM’s i.e.,
if z = xy,
then GM of z = (GM of x) . (GM of y)

15. GM of the ratio of two variables is the ratio of GM’s of two variables i.e.,
if z = x/y
then GM of

n1 log G1 + n2 log G2
16. Combined GM: log G12
n1 + n2

HARMONIC MEAN (HM)

1.

2.

3. HM cannot be calculated if any variable assumes value 0, as inverse of 0 is undefined.

4. HM has a very restricted use, and they are usually used for calculating average speed,
average rates of quantities, etc.

5. It is based on all the values.

6. It is capable of further algebraic treatment.

7. It is less affected by extreme values and sampling fluctuations compare to AM and GM.

8. If y = ax then
HM(y) = a HM (x) | GM(y) = a GM (x)
9. If all the observations are constant, HM is constant

10. Combined H.M:

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 CA FOUNDATION STATISTICS

RULE FOR USING AM AND HM

When the average to be calculated is of the form a/b, where a and b are different quantities
then
i. Use HM when ‘a’ is constant
ii. Use AM when ‘b’ is constant

For eg,
Avg. speed = ? Distance = same (given)
Distance
Use H. M we know that Speed
Time
Avg. speed = ? Time = same (given)
Use A. M

RELATION BETWEEN AM, GM & HM

1. If the values are equal,
AM = GM = HM.

2. If the values are distinct,

AM > GM > HM.

3.

MEDIAN:
1. Median is defined as the positional average and is regarded as the second best average
after arithmetic mean.

2. Median is suitable when there is a wide range of variation in data or distribution pattern
is to be studied at a varying level.

3. Median is suitable for qualitative data.

4. Median is suitable for distributions with open ends.

5. Median can be located graphically using Cumulative Frequency Polygon or Ogives.

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6. The absolute sum of deviations is minimum when the deviations are taken from Median,
and this property of Median is known as “Minimal Property”.

7. Median is dependent on change of Origin & Scale.

If Y = a bx
Then, Me (Y) = a bMe(x)

Calculation
For Simple Series
Median = value corresponding to (n + 1)/2th term in the distribution

Note 1: Arrange the data in the ascending or descending order

Note 2: If the value of (n+1)/2th term is a fraction then the average of the values within which
it is lying is the median.

Note 3: If n is odd median = simply the middle most value and if n is even median = average
of 2 mid values

For Simple Frequency Distribution:

Median = value corresponding to the (N+1)/2th Term in the ‘less than’ type Cumulative
Frequency column where,
N = Total Frequency

For Grouped Frequency Distribution:

l1 = Lower boundary of the median class i.e., the class where Cumulative Frequency N/2
falls
N = Total frequency
F = Cumulative frequency of the pre-median class.
fm = Frequency of the median class
i = Width of the median class

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MODE
1. Mode is that value of the distribution which occurs with highest frequency.

2. Mode is a crude method of finding out average and it provides only a Bird’s Eye view of
the distribution.

3. It is the most unstable average and the quickest method of finding out the average where
we need to find out the most common value of the distribution

4. It is not affected by extreme values but it is more affected by sampling fluctuations

compare to AM, GM, HM.

5. In case when distribution is Multimodal, mode is ill-defined

6. Mode is dependent on the change of origin and scale

7. If y = a bx then, Mo(y) = a b Mo(x)

8. Mode can be located graphically using Histogram or Area Diagram or Frequency

Diagram.

9. Mode does not take into account all of the observations.

10. When the classes are of unequal width, we consider frequency densities instead of class
frequency to locate mode,
where frequency density = Class Frequency
Width of the Class

Calculation of Mode for Simple Series:

1. For simple series, there is no mode as all values occur with frequency = 1, i.e., same
frequency.

2. For simple frequency distribution Mode can be calculated by mere inspection. The variable
occurring with the highest frequency is the mode of the distribution. A distribution can be
uni-modal or bi-modal, but not multi-modal.

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o If only one value of variable occurs with the highest frequency, then there is only one mode.
o If two values of variable occurs with the same highest frequency, then there are two modes.
o If all values of variable occurs with same frequency, then there is no mode.
o If more than two values of variable occurs with same highest frequency, then also
there is no mode.

Calculation of Mode for Grouped Frequency Distribution:

L1 = Lower boundary of the modal class i.e., the class with highest frequency.
fm = Frequency of the modal class
f1 = Frequency of the pre-modal class
f2 = Frequency of the post-modal class
i = Class width

CONCEPT OF SYMMETRICAL & ASYMMETRICAL DISTRIBUTION:

1. When in a distribution all the measures of central tendencies are equal, the distribution is
said to be symmetrical.

2. For symmetrical distribution; Mean = Median = Mode.

3. Any deviation from this symmetry makes the distribution asymmetrical or skewed.

4. For moderately skewed distribution: Mean – Mode = 3(Mean – Median)

OTHER PARTITION VALUES (FRACTILES)

Partition values divides distribution in equal parts.

• QUARTILES
o There are 3 quartiles (Q1, Q2, Q3), which divides the distribution in 4 equal parts
representing 25%, 50% and 75% of the data respectively.

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o Q2 is nothing but the median of the data.

o For symmetrical data, Q2 is simple average of the extreme quartiles Q1 (lower

quartile) and Q3 (upper quartile).

• DECILES
o There are 9 deciles (D1, D2, ......, D9), which divides the distribution in 10 equal parts
representing 10%, 20% ....... 90% of the data respectively.

o D5 is nothing but the median of the data.

• PERCENTILES
o There are 99 percentiles (P1, P2, ......, P99), which divides the distribution in 100 equal
parts representing 1%, 2% ..... 99% of the data respectively.

o P50 is nothing but the median of the data

• NOTE
o All partition values are dependent on the change of Origin and Scale.

o All partition values can be calculated graphically through Cumulative Frequency

Polygon or ogives.

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Calculation of Partition Values

Type of Series Quartiles Deciles Percentiles

Simple Series

Simple
Frequency Dist

Group
Frequency Dist

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CLASSWORK SECTION

AIRHTEMATIC MEAN

1. The arithmetic mean of 8, 1, 6 with weights 3, 2, 5 respectively is:

a) 5 b) 5.6 c) 6 d) 4.6

2. The average weight of students in a class of 35 students is 40 kg. If the weight of

the teacher be included, the average rises by (1/2) kg; the weight of the teacher is :
a) 40.5 kg b) 50 kg c) 41 kg d) 58 kg

GEOMETRIC MEAN

3. The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for
3 consecutive year respectively. What is the average yield percent on the total sum
invested.
a) 3.83% b) 4.83% c) 2.83% d) 3.99%

HARMONIC MEAN

4. What is the HM of 1,1/2, 1/3,... .... ..... .....1/n?

a) n b) 2n c) d)

MEDIAN

5. Calculate median for the following data :

No. of students 6 4 16 7 8 2
Marks 20 9 25 50 40 80
a) 20 b) 25 c) 35 d) 28

PARTITION VALUE

6. The third decile for the numbers 15, 10, 20, 25, 18, 11, 9, 12 is
a) 13 b) 10.70 c) 11 d) 11.50

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COMBINED PROPERTIES OF AM, MEDIAN AND MODE

7. If the Mean and Mode of a certain set of numbers be 60.4 and 50.2 respectively, find
approximately the value of the Median.
a) 55 b) 56 c) 57 d) 58

MISCELLANEOUS SUM

8. The mean and mode for the following frequency distribution

Class 350-369 370-389 390-409 410-429 430-449 450-469
interval :
Frequency: 15 27 31 19 13 6
are
a) 400 and 390 b) 400.58 and 390
c) 400.58 and 394.50 d) 400 and 394.

9. For the following incomplete distribution of marks of 100 pupils, median mark is
known to be 32.
Marks: 0–10 10–20 20–30 30–40 40–50 50–60
No. of Students: 10 - 25 30 - 10
What is the mean mark?
a) 32 b) 31 c) 31.30 d) 31.50

THEORETICAL ASPECTS

10. Measures of central tendency for a given set of observations measures

a) The scatterness of the observations
b) The central location of the observations
c) Both (a) and (b)
d) None of these.

11. While computing the AM from a grouped frequency distribution, we assume that
a) The classes are of equal length
b) The classes have equal frequency
c) All the values of a class are equal to the mid-value of that class
d) None of these.

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12. Which of the following statements is wrong?

a) Mean is rigidly defined
b) Mean is not affected due to extreme values.
c) Mean has some mathematical properties
d) All these

13. For open-end classification, which of the following is the best measure of central
tendency?
a) AM b) GM c) Median d) Mode

14. The presence of extreme observations does not affect

a) AM b) Median c) Mode d) (b) and (c) both

15. In case of an even number of observations which of the following is median?

a) Any of the two middle-most value
b) The simple average of these two middle values
c) The weighted average of these two middle values
d) Any of these

16. Which one of the following is not uniquely defined?

a) Mean b) Median c) Mode d) All of these measures

17. Weighted averages are considered when

a) The data are not classified
b) The data are put in the form of grouped frequency distribution
c) All the observations are not of equal importance
d) Both (a) and (c).

18. Which of the following results hold for a set of distinct positive observations?
a) AM GM HM b) HM GM AM
c) AM > GM > HM d) GM > AM > HM

19. Which of the following measure(s) possesses (possess) mathematical properties?

a) AM b) GM c) HM d) All of these

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20. Which of the following measure(s) satisfies (satisfy) a linear relationship between
two variables?
a) Mean b) Median c) Mode d) All of these

21. The sum of the squares of deviations of a set of observations has the smallest
value, when the deviations are taken from their
a) A.M b) H.M c) G.M d) none

22. For 899, 999, 391, 384, 590, 480, 485, 760, 111, 240
Rank of median is
a) 2.75 b) 5.5 c) 8.25 d) none

Theory Answers

ANSWERS - SUMS ANSWERS - THEORITICAL ASPECTS

Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 b 7 c 13 c 19 d
2 d 8 c 14 d 20 d
3 d 9 c 15 b 21 a
4 c 10 b 16 c 22 b
5 b 11 c 17 c
6 b 12 c 18 c

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MEASURES OF DISPERSION
2B (Average of Second Order)

THEORY
Introduction:
• Dispersion is defined as deviation or scattering of values from their central values i.e,
average (Mean, Median or Mode but preferably Mean or Median)

• Dispersion discovers variability in uniformity.

• In other words, dispersion measures the degree or extent to which the values of a
variable deviate from its average

• Dispersion indicates the degree of heterogeneity among observation and as

heterogeneity increases dispersion increases

• If all values are equal then any measure of dispersion is always zero

• All measures of dispersion are positive

• All measures of dispersions are independent of the change of origin but dependent on the
change of scale

• All pre requisites of a good measure of central tendency are equally applicable for good
measure of dispersion

• TWO DISTRIBUTIONS MAY HAVE;

i. Same central tendency and same dispersion
ii. Different central tendency but same dispersion
iii. Same central tendency but different dispersion
iv. Different central tendency and different dispersion

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Types of Measures of Dispersion

There are two types of measures of dispersion,

Absolute Measure Relative Measure

a. These measures of dispersion will have a. These are usually expressed as ratios
the same units as those of the variables or percentages and hence unit free
b. Absolute measures are related to the b. Relative measures are used
distribution itself. i) to compare variability between
two or more series.
ii) To check the relative accuracy of
the data

MEASURES OF DISPERSION (AVERAGE OF SECOND ORDER)

A good measure of dispersion should obey conditions similar to those for a satisfactory
average and are as follows :
i. It should be rigidly defined.

ii. It should be based on all observations.

iii. It should be readily comprehensible.

iv. It should be fairly easily calculated.

v. It should affected as little as possible by fluctuations of sampling;

vi. It should readily lend itself to algebraic treatment and

vii. It should be east affected by the presence by extreme values

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Measure of Dispersion

Absolute Relative

Range Quartile Mean Standard Coefficient Coefficient Coefficient Coefficient

Deviation Deviation Deviation of of of of

or Or Range Quartile Mean Variation

Semi Inter Mean Deviation Deviation

Quartile Absolute

Range Deviation

RANGE
• It is the quickest measure, of finding out Dispersion

• It does not depend on all observations

• It’s a crude method of finding out dispersion and most unreliable

• Range is unaffected by the presence of frequency

• Range is independent of the change of origin but dependent on change of scale

• If y=a±bx
R(y)=|b| ×R(x)

Calculation Of Range:
• For simple series and simple Frequency Distribution :
Range = Highest Value – Lowest Value (H – L).

• For grouped frequency distribution:

o Range = Upper boundary of last class – Lower boundary of 1st class
o Range = Upper Limit of last class – Lower limit of 1st class + 1

• Co-efficient of Range (Relative Range) =

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Quartile Deviation or Semi-inter quartile Range:

• QD is defined as the half of the range between the quartiles

• It is based on the upper and the lower Quartile and covers 50% of the observations.

• It does not depend on all observations

• For distributions with the Open Ends Q.D is the best and only measure of dispersion.

• QD is independent of the change of Origin but dependent on the change of Scale.

• If y=a±bx
QD( y)=|b| ×QD(x)

• Quartile Deviation (QD) = , Where Q3 is the upper quartile and Q1 is the lower
quartile.

• Co-efficient of QD(Relative Measure) =

• For symmetrical distribution; , i.e., median is the average of two

extreme quartiles.

Thus coefficient of QD for symmetrical distribution =

Mean Deviation / Mean Absolute Deviation

• It is based on all observations and hence it provides much better dispersion than
Range and Quartile Deviation

• Mean deviation of a set of values of a variable is defined as the AM of the Absolute

Deviation taken about Mean, Median or Mode.(Preferably AM or Median)

• Absolute Deviation implies Deviation without any regard to sign

• If nothing is specified Mean Deviation will imply Deviation about AM only.

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• Since sum of Deviations is least when Deviations are taken about Median hence MD
about Median will have the least value.

• MD is the independent of the change of origin but dependent on the change of scale

• If y=a±bx
MD( y)=|b| ×MD(x)

• Formula to calculate Mean Deviation:

Simple Series Simple / Grouped

Frequency Distribution

Where n = number of observation

∑f=N = Total frequency
=A.M
M = Median
X=Either actual values of the variables or mid values if it a group frequency distributions

o Coefficient of MD(Relative Measure) =

Standard Deviation
• It is the best measure and the most commonly used Measure of Dispersion.

• It takes into consideration the magnitude of all the observations and gives the
minimum value of dispersion possible.

• SD has all the pre-requisites of a good measure of dispersion, except the fact
that it gets unduly affected by the presence of extreme values,

• It is also known as Root Mean Square Deviation about mean.

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• It is denoted by

• SD2 = Variance=
• If all observations are equal variance =SD=0

• SD is the independent of the change of origin but dependent on the change of scale

• If y=a±bx
SD( y)=|b| ×SD(x)
V(y)=b2×v(x)

Definition of SD:
• SD of a set of values of a variable is defined as the positive Square Root of the AM of
the Square of Deviations of the values from their AM

• Thus, SD is also known as Root - Mean – Square - Deviations (RMSD)

Calculation of SD

Simple Series(Without Simple /Grouped Frequency

Frequency) Distribution

• Where, ,
x= mid-values if it is a grouped frequency distribution or original values if it is a discrete
series

A = Assumed Mean i.e., a value arbitrarily chosen from mid-values or any other
value.
i = class width or any arbitrary value

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Note1 : Use form i) when you find that is whole number

Note2 : Use form ii) when the value of the variable x are small
Note3 : Use Form iii) when you find that the values of x are large is not a whole number(
usually to be used for grouped frequency distribution)

USEFUL RESULTS:
• SD of two numbers is the half of their absolute difference(Range), i.e., if numbers are a and
b, then SD =

• Variance of first “n” natural numbers (1, 2, 3, ........, n) is

• Sum of the squares of observations

Formula for combined or composite or pooled S.D. of two groups

Group I Group II
Numbers
Mean

Standard Deviation

• Step 1 – Find Combined Mean:

• Step 2 – Find Deviations :

• Step 3 – Use Formula:

• Coefficient of Variation (C.V)(Relative Measure) =

• C.V is the best relative measure of dispersion

• C.V is used to compare variability or consistency between 2 or more series

• More C.V implies more variability indicating thereby less stability or consistency and vice
versa.

• Regarding choice of an item always choose that item which has less C.V, because the item
with lower C.V is more stable.

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CLASSWORK SECTION

RANGE

1. If Rx and Ry denote ranges of x and y respectively where x and y are related by

3x+2y+10=0,
what would be the relation between x and y?
a) Rx = Ry b) 2 Rx= 3 Ry c) 3 Rx= 2 Ry d) Rx= 2 Ry

2. If the range of x is 2, what would be the range of –3x +50 ?

a) 2 b) 6 c) –6 d) 44

QUARTILE DEVIATION

3. If x and y are related as 3x+4y = 20 and the quartile deviation of x is 12, then the
quartile deviation of y is
a) 16 b) 14 c) 10 d) 9.

MEAN DEVIATION

4. What is the value of mean deviation about mean for the following numbers?
5, 8, 6, 3, 4.
a) 5.20 b) 7.20 c) 1.44 d) 2.23

5. If the relation between x and y is 5y–3x = 10 and the mean deviation about mean
for x is 12, then the mean deviation of y about mean is
a) 7.20 b) 6.80 c) 20 d) 18.80.

6. If two variables x and y are related by 2x + 3y –7 =0 and the mean and mean
deviation about mean of x are 1 and 0.3 respectively, then the coefficient of mean
deviation of y about its mean is
a) –5 b) 12 c) 50 d) 4.

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7. What is the mean deviation about median for the following data?
X 3 5 7 9 11 13 15
F 2 8 9 16 14 7 4
a) 2.50 b) 2.46 c) 2.43 d) 2.37

STANDARD DEVIATION

8. What is the coefficient of variation of the following numbers?

53, 52, 61, 60, 64.
a) 8.09 b) 18.08 c) 20.23 d) 20.45

9. If the SD of x is 3, what is the variance of (5–2x)?

a) 36 b) 6 c) 1 d) 9

10. If x and y are related by y = 2x+ 5 and the SD and AM of x are known to be 5 and 10
respectively, then the coefficient of variation of y is
a) 25 b) 30 c) 40 d) 20

11. What is the coefficient of variation for the following distribution of wages?

Daily Wages (`): 30 – 40 40 – 50 50 – 60 60 – 70 70 – 80 80 – 90

No. of workers 17 28 21 15 13 6
a) ` 14.73 b) 14.73 c) 26.93 d) 20.82

COMBINED STANDARD DEVIATION

12. If two samples of sizes 30 and 20 have means as 55 and 60 and variances as 16 and
25 respectively, then what would be the SD of the combined sample of size 50?
a) 5.00 b) 5.06 c) 5.23 d) 5.35

CORRECTION IN STANDARD DEVIATION

13. The mean and SD of a sample of 100 observations were calculated as 40 and 5.1
respectively by a CA student who took one of the observations as 50 instead of 40
by mistake. The correct value of SD would be
a) 4.90 b) 5.00 c) 4.88 d) 4.85.

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THEORETICAL ASPECTS

14. When it comes to comparing two or more distributions we consider

a) Absolute measures of dispersion
b) Relative measures of dispersion
c) Both (a) and (b)
d) Either (a) or (b).

15. Which one is an absolute measure of dispersion?

a) Range b) Mean Deviation
c) Standard Deviation d) All these measures

16. Which measures of dispersions is not affected by the presence of extreme observations?
a) Range b) Mean deviation
c) Standard deviation d) Quartile deviation

17. Which measure of dispersion is based on all the observations?

a) Mean deviation b) Standard deviation
c) Quartile deviation d) (a) and (b) but not (c)

18. The appropriate measure of dispersion for open-end classification is

a) Standard deviation b) Mean deviation
c) Quartile deviation d) All these measures.

19. A shift of origin has no impact on

a) Range b) Mean deviation
c) Standard deviation d) All these and quartile deviation.

20. If all the observations are increased by 10, then

a) SD would be increased by 10
b) Mean deviation would be increased by 10
c) Quartile deviation would be increased by 10
d) All these three remain unchanged.

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21. If all the observations are multiplied by 2, then

a) New SD would be also multiplied by 2
b) New SD would be half of the previous SD
c) New SD would be increased by 2
d) New SD would be decreased by 2.

ANSWERS - SUMS ANSWERS - THEORITICAL ASPECTS

Q. No. Ans Q. No. Ans Q. No. Ans Q. No. Ans
1 c 8 a 14 b 20 d
2 b 9 a 15 d 21 a
3 d 10 c 16 d
4 c 11 b 17 d
5 a 12 b 18 c
6 b 13 b 19 d
7 d

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3A CORRELATION ANALYSIS

• Correlation is the degree of association between two or more variables

• In other words, correlation measures the degree or extent to which two variables
move in sympathy.

• This association or lack of association is measured by means of a coefficient called

correlation coefficient.

• It is a pure number without any unit and the value of which lies between -1 and +1
a. When correlation coefficient is +1, perfect positive Correlation
b. When correlation coefficient is -1, perfect negative Correlation
c. When correlation coefficient is 0, no correlation

In the given context we are concerned with,

i. Correlation between two variables i.e., x and y (Bivariate Correlation).
ii. Correlation implies Linear correlation only.

• Correlation coefficient is independent of change in Origin and Scale.

Note:
Concept of Spurious or Nonsense correlation:
Sometimes it is found that there is no casual relation between two variables but due to
presence of a third variable a correlation can be observed between the two. This variable
which is responsible for the correlation other two variable is called “Lurking variable”.

Methods of calculating correlation coefficient:

1. Karl-Pearson’s Coefficient of Correlation or Product-Moment Correlation Coefficient

or Correlation Coefficient by Covariance Method (r)

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i.

Where,
Cov(x, y) = Covariance between x and y

ii. Thus,

iii. When deviations are taken from actual means say and such that u=x- and
v=y- in such a case r will be given by,

iv. When deviations are taken from assumed means say ‘a’ from X and ‘b’ from Y such
that u=X-a and v=Y-b in such a case ‘r’ is given by,

Note 1: Use (i) when you find that cov (x, y), and are provided

Note 2: Use (ii) when you find that the values of x and y are small

Note 3: Use (iii) when you find that and are whole numbers

Note 4: Use (iv) when you find that and are not whole numbers or the values of x and y are
large or the problems specifically directs that the deviations are to be taken from assumed
mean only.

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2. Spearman’s Rank Correlation Coefficient:

• Rank correlations is used for Qualitative data like beauty, intelligence etc.
• It is used for measuring correlation between two attributes.
• It is denoted by ‘R’

Formula for rank correlation,

Case 1: without tie-when all the variables have different ranks

Where,
n = Total number of individuals
D = Rank difference= Rx - Ry

Case 2: Tied Ranks

i. In such cases two or more variables have the same score and accordingly average ranks
are assigned to the variables which are involved in the tie.

ii. The Formula in such a case

Where,
t = number of variables are involved in tie.
n = total number of variables
D = Rx – Ry=Rank difference

3. Concurrent Deviation Method or Coefficient of Concurrent Deviation [r]:

• It is the simplest and quickest method of calculating correlation

• It is used to know the direction changes between two variables

• It is suitable only when the variable includes short term fluctuations

• It lies between -1 and +1

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• Let (x1,y1), (x2,y2), .... ...., (xn+1,yn+1) be a set of (n+1) pairs of values of x and y. Let
Cx and Cy denote the direction changes in the values of x and y i.e., Cx and Cy will
have positive signs if there is an increase in the values of x and y w.r.t its immediate
preceding value and will have negative signs in case of decrease.

If C denotes the number of concurrent deviations i.e., total number of positive signs in the Cx .Cy
column then the coefficient of concurrent deviation is given by,

Where,
n = pairs of deviations compared
c = number of concurrent deviations

i. If is positive, positive sign is to be assigned both inside and outside the square root.

ii. If is negative, negative sign is to be assigned both inside and outside the square
root.

iii. When C = 0, r = -1

iv. When C = n, r = 1

v. When C = ,r=0

4. Diagramatic representation of correlation through scatter diagram or scatter plot:

• It the simplest way to represent bivariate data

• It gives a vague idea about the nature of correlation between two variables

• It helps us to distinguish between different types of correlation but fails to measure the
extent of relationship between the variables

• Through scatter diagram we can get an idea about the nature of correlation; positive,
negative, zero or curvilinear

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Properties of Correlation of Coefficient ‘r’:

• Coefficient correlation is symmetric i.e., rxy= ryx
• If y = a+ bx then,
i. r = +1 when b>0 and
ii. r = -1 when b<0

• correlation coefficient is independent of the change of origin and scale.

If and then,

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a. ruv = rxy, if c and d are of the same sign

b. ruv = -rxy, if c and d are of the opposite sign

Miscellaneous Properties:
• Coefficient of determination = r2

• Coefficient of Non -Determination :

• Coefficient of alienation = square root of coefficient of non-determination =

• Percentage of explained variation =

• Percentage of unexplained variation =

• Standard error of r (S.E of r) =

• Probable error of r [P.E (r)] = 0.6745 x SE(r)

• Probable error and standard error both are used for determining the reliability of
correlation coefficient. For this purpose the following rule is followed,
1) If r < P.E. there is no significant correlation in population.
2) If r > 6 P.E. there is significant correlation in population and we can rely on the
value of r
3) Otherwise, in the intermediate interval there is no clear idea about the correlation in
the population and hence no inference can be drawn about the population correlation
coefficient ( ).
Using probable Error (P.E.), we can find the probable limits for population correlation
coefficient ( ) as follows
Probable limits = r P.E
= (r-P.E) to (r+ P.E)

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• Let x and y be two correlated variables, then: V (x

• Let x and y are two uncorrelated variables, then Cov(x,y) = 0 and hence,

BIVARIATE DATA
• When a set of data is collected for two variables simultaneously it is called a
Bivariate Data

• When a frequency distribution is formed with these bivariate data it is known as

Bivariate Frequency Distribution or Joint Frequency Distribution or Two Way Distribution

• The tabular representation of this frequency distribution is known as Two Way

Frequency Table

• Following is a bivariate table for the data relating to marks in maths and statistics

Marks in Mathematics
Marks in 0-4 4-8 8-12 12-16 16-20 Total
Stats 0-4 1 1 2 0 0 4
4-8 1 4 5 1 1 12
8-12 1 2 4 6 1 14
12-16 0 1 3 2 5 11
16-20 0 0 1 5 3 9
Total 3 8 15 14 10 50

Observations:
• A bivariate frequency distribution having m rows and n columns has m x n cells
• Some of the cell frequencies may be zero

From a bivariate distribution we can have the following two types of Uni-variate distributions
i. Two Marginal Distributions
ii. m+n Conditional Distributions

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From the above table the two marginal distributions are as follows,

Marginal Distribution of Marks in Mathematics

Marks No of students
0-4 3
4-8 8
8-12 15
12-16 14
16-20 10
Total 50

Similarly, we can have Marginal Distribution for marks in statistics

From the above table, an example a Conditional distribution of marks in Statistics

when the mathematics marks lie between 8-12

Marks No of students
0-4 2
4-8 5
8-12 4
12-16 3
16-20 1
Total 15

Bivariate Relationship
Between two variables x and y there can exist any of the following three relationship
a. Direct or Positive – with change in one variable x, the other variable y will also
change in the same direction. Eg: Price and quantity supplied: amount of rainfall
and crop yield

b. Indirect or Inverse or Negative – With change in one variable, the other variable will
change in the opposite direction. Eg: Price and quantity demanded.

c. No relation – With change in one variable x, if another variable y doesn’t show any
specific trend (increasing or decreasing), then we say there exist no relation between
x and y.

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CLASSWORK SECTION

Product Moment Method/ Covariance Method

1. The Cov (x, y) =15, what restrictions should be put for the standard deviations of x and y?
a) No restriction
b) The product of the standard deviations should be more than 15
c) The product of the standard deviations should be less than 15
d) The sum of the standard deviations should be less than 15

2. Find the coefficient of correlation from the following data:

X: 1 2 3 4 5
Y: 6 8 11 8 12
a) + 0.775 b) – 0.775 c) + 0.895 d) + 0.956

3. Calculate correlation coefficient from the following data:

a) 0.215 b) – 0.215 c) – 0.317 d) None of the above

4. Find the number of pairs of observation from the following data: r = 0.25,

a) 30 b) 40 c) 20 d) 10

Rank Correlation Coefficient “R”

5. The coefficient of rank correlation between the marks in Statistics and Mathematics
obtained by a certain group of students is 2/3 and the sum of the squares of the
differences in ranks is 55. How many students are there in the group?
a) 10 b) 9 c) 12 d) more than 15

6. From the following data calculate the value of coefficient of Rank correlation:
X: 75 88 95 70 60 80 81 50
Y: 120 134 150 115 110 140 142 100
a) 0.93 b) – 0.85 c) 0.85 d) 0.63

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Concurrent Deviation Method

7. What is the coefficient of concurrent deviations for the following data:

Supply: 68 43 38 78 66 83 38 23 83 53 48
Demand: 65 60 55 61 35 75 45 40 85 80 85
a) 0.82 b) 0.85 c) 0.89 d) – 0.81

8. The coefficient of concurrent deviation for p pairs of observation was found to be

1/ . If the number of concurrent deviations was found to be 6, then the value of p
a) 10 b) 9 c) 8 d) None of these

Change of Origin and Change of Scale

9. If u + 5x = 6 and 3y + 7v = 20 and the correlation coefficient between x and y is 0.58

then where would be the correlation coefficient between u and v?
a) 0.58 b) -0.58 c) -0.84 d) 0.84

Theoretical Aspects

10. Correlation co-efficient is ______ of the units of measurement

a) Dependent b) Independent
c) Both d) None

11. In Case of “insurance companies” profit and the number of claims They have pay
there is ______ correlation.
a) Positively b) Negative
c) No of correlation d) None of these

12. Which of the following regarding value of “r” is TRUE?

a) “r” is a pure number
b) “r” lies between –1 and +1 both inclusive
c) Neither (a) nor (b)
d) Both a) and b) are true

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13. For which of the following statements the correlation will be negative?
a) Production and price per unit
b) Sale of woolen garments and day temperature
c) Neither (a) nor (b)
d) Both a) and b) above

14. Karl Pearson’s correlation coefficient may be defined as:

a) The ratio of covariance between the two variables to the product of the
standard deviations of the two variables.
b) The ratio of covariance between the two variables to the product of the variance
of the two variables.
c) The ratio of product of standard deviations of the two variables to the covariance
between the two variables.
d) None of the above.

Rank Correlation:

15. Rank of beauty contest by two judges are in reverse orders the find the value of
spearmen’s rank correlation co-efficient
a) -1 b) 0 c) 1 d) 0.75

16. Sum of the difference in ranks is always _____

a) 1 b) 2 c) -1 d) 0

Properties:

17. In case the correlation coefficient between two variables is 1, which of the following
would be the relationship between the two variables?
a) y = p + qx, q > 0 b) y = p + qx, q < 0
c) y = p + qx, p > 0, q < 0 d) Both a) and b) above

18. If the relationship between two variables x and y is given by 22x + 33y + 84 = 0, then
the value of correlation coefficient between x and y will be:
a) 1.00 b) 0
c) – 1.00 d) Between 0 and 1.00

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19. The co-efficient of correlation between x and y is 0.6. if x and y both are multiplied
by -1, then the co-efficient of correlation will be:
a) 0.6 b) - 0.6 c) d)

20. Which of the following regarding value of “r” is TRUE?

a) It is not affected by change in scale.
b) It is not affected by change of origin.
c) It is both affected by change in scale and origin.
d) Both a) and b) above are true.

Application of r:

21. A relationship r2 = is not possible

a) True b) False c) Both d) None

Scatter Diagram:

22. When the correlation coefficient r=+1, all the points in a scatter diagram would be
a) On a straight line directed from upper left to lower right
b) On a straight line directed from lower left to upper right
c) On a straight line
d) Both (a) and (b)

Bivariate Data:

23. From the Bivariate Frequency Distribution, we can obtain which of the following
Univariate distribution?
a) Marginal distribution
b) Conditional distribution
c) Both a) and b) above
d) Neither a) nor b) above

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3B REGRESSION ANALYSIS

Introduction
• Regression is the average linear relationship between two or more variables.

• The word regression implies “estimation or prediction”. In other words through regression
equations we can quantify the relationship between two variables and we can predict the
average value of one variable corresponding to a specific value of the other.

• It establishes a functional relationship between two variables.

• Regression equation enables us to find the nature and the extent of relationship between
two variables. Correlation can measure only the degree of association between the two
variables whereas regression quantifies such relationship.

• The two variables are dependent and independent variable. Thus, we try to estimate the
average value of dependent variable, for a specified value of independent variable using
regression analysis.

• If there are two variables, then the independent variable is called the “Regressor” or
“Explaining Variable” and the dependent variable is called the “Regressed” or “Explained
Variable”.

• Regression analysis is an absolute measure showing a change in the value of y or x for

a corresponding unit change in the value of x or y whereas correlation coefficient is a
relative measure of linear relationship between x and y.

• This average linear relationship between two variables is expressed by means of two
straight line equation known as regression lines or regression equations.

• If there are two variables x and y we can have the following two types of regression lines,
i. Regression equation of y on x (y dependent, x independent)
ii. Regression equation of x on y (x dependent, y independent)

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REGRESSION LINES

Regression equation of y on x: Regression equation of x on y:

• •

• byx stands for regression coefficient of • bxy stands for regression coefficient of
y on x x on y

• Here y depends on x • Here x depends on y

• Here y is a dependent/explained and • Here x is a dependent/explained and

x is an independent variable x is an independent variable

• This equation will be of the form • This equation will be of the form
y = a + bx x = a + by

• This equation is used to estimate the • This equation is used to estimate the
value of y given the value of x value of x given the value of y

• The slope of this equation is byx • The slope of this equation is bxy

• The regression line of y on x is the • The regression line of x on y is derived

straight line on the scatter diagram by the minimization of horizontal
for which the sum of squares of distance in the scatter diagram using
vertical distances of the points is method of least square.
minimum.
• The principle which is applied for
• The principle which is applied for deriving the two lines of regression is
deriving the two lines of regression is known as “Method of Least Squares”.
known as “Method of Least Squares”.

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CALCULATION OF REGRESSION COEFFICIENTS

Regression coefficient of y on x (byx): Regression coefficient of x on y (bxy):

1. Using co-variance: 1. Using co-variance:

2. Without any deviations (Directly 2. Without any deviations (Directly

from x and Y values) from x and Y values)

3. When deviations are taken from 3. When deviations are taken from
actual mean i.e., and such that actual mean i.e., and such that

4. When deviations are taken from 4. When deviations are taken from
assumed mean say A & B for x and y, assumed mean say A & B for x and y,
u=x-A, v = y-B u=x-A, v = y-B

5. Using ‘r’ 5. Using ‘r’

and r = Correlation co-efficient between and r = Correlation co-efficient between

x and y x and y

PROPERTIES OF REGRESSION COEFFICIENTS

1. byx = slope of the regression line of y on x which measures the change in variable y for a unit
change in variable x.

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2. bxy= slope of the regression line of x on y which measures the change in variable x for a unit
change in variable y.

3. Correlation coefficient is symmetric i.e., ryx= rxy but regression coefficients are not
symmetric byx bxy .

4. When r = 0, both the regression coefficients are 0.

5. Both the regression coefficients will have same sign.

6. Correlation coefficient is the geometric mean between regression coefficients i.e.,

7. Sign analogy of byx, bxy and r

byx bxy r

+ + +
- - -

Note:
When byx and bxy are of opposite signs, data are inconsistent, r is imaginary.

8. Regression coefficients are independent of the Change of Origin but they are dependent on
Change of Scale. If and then

i. byx = bvu

ii. bxy= buv

9. There is no specific range within which two regression coefficients will lie but their values
should be such that the square root of the product of two regression coefficients must lie
between -1 and +1 (both inclusive). Thus, if one of the regression coefficient, is greater
than unity then the other must be less than unity.

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Properties of regression lines:

• Two regression lines always intersect at their mean or average values ( . In other
words if we solve two regression equations we get the average values of x and y.

• When r = 0, then

i. byx = bxy=0

ii. The two regression lines thus reduces to; y = and x =

iii. Nothing can be predicted from the two regression lines since, the variables become
independent.

iv. The angle between the two regression lines becomes 90o i.e., they are perpendicular to
each other.

• When r = , then
i. The two regression lines become identical i.e., they coincide.

ii. byx=

iii. Perfect linear co-relationship is observed and the angle between the two regression
lines becomes 0o.

iv. For a particular value of x we shall obtain a specific value of y.

• As the angle between two regression lines numerically decreases from 90o to 0o, the
correlation increases from 0 to 1 and the two regression lines comes closer to each other.

• Angle between two regression lines; if A is the angle between two regression lines then
tan A =

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Miscellaneous Properties:

• In regression analysis, the difference between the Observed value and the Estimated value
is known as Residue or Error.

• Proportion of Total Variance explained by regression analysis is r2.

• Proportion of Total Unexplained Variance is (1- r2).

• Standard error of estimate of x(Sxy) is given by Sxy= or

• Standard error of estimate of y(Syx) is given by Syx= or

• When r2=1 , then;
i.

ii. Explained variance = Total Variance

iii. The whole of the total variance is explained by regression.

iv. The unexplained variation is zero

v. All the points on the scatter diagram will lie on the regression line

vi. There is a perfect linear dependence between the variables

vii. The two regression lines coincide

viii. For a given value of one variable, we have a fixed value of the other variable

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CLASSWORK SECTION

1. Given the following data:

Variable: x y
Mean: 80 98
Variance: 4 9
Coefficient of correlation = 0.6
What is the most likely value of y when x = 90 ?
a) 90 b) 103 c) 104 d) 107

2. If 4y – 5x = 15 is the regression line of y on x and the coefficient of correlation

between x and y is 0.75, what is the value of the regression coefficient of x on y?
a) 0.45 b) 0.9375 c) 0.6 d) none of these

3. Regression equation of Y on X is 8X – 10Y + 66 = 0 and SD(x) = 3, find the value of

Cov (x, y).
a) 11.25 b) 7.2 c) 2.4 d) None of the above

Properties of Regression Coefficients

4. If bxy = - 1.2 and byx = - 0.3, then the coefficient of correlation between x and y is:
a) – 0.698 b) – 0.36 c) – 0.51 d) – 0.6

5. Given bxy = 0.756, byx = 0.659, then the value of coefficient of non-determination is
given by:
a) 0.402 b) 0.502 c) 0.602 d) 0.702

Change of Origin and Change of Scale

6. If u = 2x + 5, v = -3y + 1, and the regression coefficient of y on x is – 1.2, the

regression coefficient of v on u is:
a) 1.8 b) – 1.8 c) 3.26 d) 0.8

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Identification Problems
7. Two random variables have the regression lines 3x+2y=26 and 6x+y=31. The
coefficient of correlation between x and y is :
a) -0.25 b) 0.5 c) -0.5 d) 0.25

8. The two lines of regression are given by

8x + 10y = 25 and 16x + 5y = 12 respectively.
If the variance of x is 25, what is the standard deviation of y?
a) 16 b) 8 c) 64 d) 4

Theoretical Aspects

9. The word regression is used to denote ________ of the average value of one variable
for a specified value of the other variable.
a) Estimation b) Prediction
c) Either a) or b) above d) None of the above

10. Regression methods are meant to determine:

a) The nature of relationship between the variables.
b) The functional relationship between the two variables.
c) Both a) and b) above
d) Neither a) nor b) above.

11. The dependent variable in the regression analysis is one:

a) Which influences the value of the independent variable.
b) Whose value is to be predicted.
c) Which can choose its value independently.
d) None of the above.

12. The line of regression is:

a) The line which gives the best estimate to the value of one variable for any
specified value of the other variable.
b) The line which gives the best estimate to the value of all variables for any
arbitrary value of a constant variable.
c) The line showing the nature of relationship between two or more variables.
d) None of the above.

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13. Since Yield of a crop depends upon amount of rainfall, we need to consider:
a) The regression equation of yield on rainfall
b) The regression equation of rainfall on yield
c) Any one of a) or b) above can be considered
d) Neither of a) or b) can be considered

Properties:

14. If r = +1, the two lines of regression become:

a) Perpendicular to each other.
b) Identical
c) Parallel to each other.
d) Either a) or c) above.

15. Correlation coefficient is the _______ of the two regression coefficients.

a) Harmonic Mean
b) Geometric Mean
c) Arithmetic Mean
d) Both b) and c) above

16. The sign analogy of correlation coefficient and two regression coefficients is:
a) -, +, + b) -, -, - c) +, +, + d) Both b) and c) above

17. When r = 0, the regression lines are:

a) Parallel to each other
b) Perpendicular to each other
c) Coincides
d) Either a) or b) above

18. Which of the following(s) is/are TRUE regarding regression coefficient?

a) If bxy > 0, then r < 0
b) If bxy < 0, then r > 0
c) If the variable X and Y are independent, the regression coefficient is zero.
d) The range of regression coefficient is –1 to +1.

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19. Which of the following statement/s is/are FALSE regarding the regression
coefficient?
a) If one of the regression coefficient is greater than unity the other one is less
than unity.
b) The product of two regression coefficient is equal to the square of the correlation
coefficient between the two variables.
c) The regression coefficient lies between – infinity to + infinity.
d) None of the above is FALSE.

20. Regression Coefficient of y on x=0.8. Regression coefficient of x on y =0.2 coefficient

of correlation = -0.4. Given data is:
a) Accurate b) Inaccurate c) True d) None

21. If the regression coefficient of y on x is 4/3, then the regression coefficient of x on y is:
a) More than 1 b) Less than 1
c) Less than zero d) None of the above

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4 INDEX NUMBERS

Basic Concepts
• Index Numbers are special kind of averages, expressed in ratio, calculated as
percentage and used as numbers.

• Index number is a number which is used as a tool for comparing prices and quantities
of a particular commodity or a group of commodities in a particular time period
with respect to other time period or periods.

• Index numbers indicate relative change in price or quantity or value expressed in

percentage.

• Index numbers are always unit free.

• The year in which the comparison is made is called the “Current Year” and the year
with respect to which the comparison is made is the “Base Year”.

• Suppose Price Index in 2011 is 800 based on 1980 prices, then

o 1980 means base year with help of which comparison is done.
o If nothing is mentioned, base prices are always taken as 100.
o 2011 is the current year or present year.
o 800 is the index number or price index number.

• Index numbers are of three types:

o Price Index – When the comparison is made in respect of prices it is called price
index numbers.

o Quantity Index – When the comparison is made in respect of quantities it is

called Quantity of Volume Index Numbers.

o Value Index – When comparison is made in respect of values

(Value = Price x Quantity), it is called Value Index Number.

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• Terminology (Unless otherwise mentioned we shall be using the following notations)

o I01 means Index Number for year “1” based on year “0”(Current with respect to base)
o I10 means Index Number for year “0” based on year “1”(base with respect to current)
o P1 = Prices prevailing in current year (year 1)
o P0 = Prices prevailing in base year (year 0)
o Q1 = Quantity in current year
o Q0 = Quantity in base year
o P0Q0 = Price x Quantity of Base Year (Value of the base year)
o P1Q1 = Price x Quantity of Current Year (Value of Current Year)
o V01 = Value Index of current year with respect to base year
o V10 = Value Index of base year with respect to current year

• Concept of price Relative (PR) :

Price relative is defined as the ratio of Current Year’s price to the Base Year’s price
expressed as percentage Symbolically,

I=

Construction of Price Index Numbers

Method of Aggregates

Case: 1 Case: 2
Simple Aggregate of prices Weighted Aggregate of prices

CALCULATION OF WEIGHTED AGGREGATE OF PRICES UNDER DIFFERENT TYPE OF

WEIGHTS
If w = Q0 If w = Q1
Laspeyre’s Index Paasche’s Index

Fisher’s Index Bowley’s Index

GM of L and P AM of L and P

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If w = Q0 + Q1
Marshall-Edgeworth Index

Relative Method
First calculate Price Relative (PR) of each commodity. Price Relative (PR) is defined as
the ratio of the current year’s price to the base year’s price, expressed as percentage
and is given by

Case: 1 Case: 2
Simple AM of Price Relative Weighted AM of Price Relative

n=number of Commodities ∑w= Total Weight

Note :
• GM is the best average in the construction of index numbers but practically we use
AM, because G.M is difficult to compute.

• Marshall- Edgeworth’s Index number is an approximation to Fisher’s index number.

• Methods of Relatives are also known as Arithmetic Mean Method.

• When a series of Index Numbers for different years are expressed in a tabular form to
compare the changes in different years, then this tabular representation of numbers
is known as “Index Time Series”.

Construction of Quantity Index Numbers

All the formula will remain same as in price index numbers, just interchange p and
q, i.e., p to q and q to p. For example; if Laspeyer’s Price Index is , then
Laspeyer’s Quantity Index we can get by interchanging P to Q and Q to P, and hence

it will be

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Construction of Value Index Number

Cost of Living Index (CLI)

• CLI is also known as Wholesale Price Index, Consumer Price Index or General Index.

• CLI is defined as the weighted AM of index numbers of few groups of basic necessities.
Generally for calculating CLI; food, clothing, house rent, fuel & lightning and miscellaneous
groups are taken into consideration.

• , where I = Individual Group Index and w = Group weight.

• Application of Cost of Living Index

o It helps to calculate the purchasing power of money and real income of the consumer.

o Increase in CLI implies increase in price index causing thereby an inflation i.e.
reduction in the purchasing power.

o Purchasing Power of 1 =

o Real Income =

• Concept of Equivalent Salary – Calculation of Dearness Allowances(D.A)

Suppose a person was getting a money income of ` X1 in Year 1 (Y1) when the CLI
was I1 and in Year 2 (Y2) the CLI is I2. If the person wants to maintain his former
standard of living as in Y1, then Real Income (RI) of Y1 should be equal to RI of Y2.

Thus Money Income required in Y2 =

Let the money income in Y2 is X2. If X2 is less than or equal to X1, then no allowances
are required to be given. But if X2 is greater than X1, then amount of Dearness
Allowances = (X2 – X1)

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Base Shifting in Index Numbers

• Base Shifting is a process whereby a new series of Index Numbers with a new base
year is formed from a given series of Index Numbers with another base year.

• Index Number for any year (with base year shifted) is given by:

Tests of Adequacy of Index Number

• Unit Test – An Index Number is a good index number if it is unit free. All index
numbers will satisfy this test except Simple Aggregate of Prices.

• Time Reversal Test (TRT) – According to this test I01 x I10 = 1 (ignore 100). This test is
satisfied by:
o Simple Aggregate of Prices
o Weighted GM of Price Relative
o Marshall Edgeworth Index
o Fisher’s Ideal Index

• Factor Reversal Test (FRT) – According to this test Price Index x Quantity Index = Value
Index. Only Fisher’s Ideal Index satisfies this test.

• Circular Test – Circular Test is an extension of Time Reversal Test. According to this
test I01 x I12 x I23 x .... x I(n-1), n x In,0 = 1. This test is satisfied by:
o Simple Aggregate of Prices (ie. Weighted Aggregate of Prices with Fixed Weights)
o Simple GM of Price Relatives

Fixed Base Method – Chain Base Method

• Under Fixed Base Method (FBM), all the index numbers are calculated with respect
to a fixed base period.

• Under Chain Base Method (CBM), all the index numbers are calculated with respect
to the price of immediate preceding period.

• Under CBM, the index number for the first year will always be 100.
• For the first year, Chain Base Index = Fixed Base Index.

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• FBI for any year =

• Chain Index Numbers
o Chain Index Numbers are calculated from Link Index Numbers or Link Relatives.
o Chain Index for any year =

o Link Relative =

Note: Always start with one year preceding to the given years from which you are to
calculate the chain index numbers. In that year (i.e. the preceding year) take both the link
relative and the chain index to be 100.

Splicing of Index Numbers

• Splicing is a process whereby two or more discontinued series of index numbers with
different base years are merged to form a new continuous series of index numbers
with a new base year.

• The factor which is multiplied for such conversion is called “Conversion Multiplier”.

• Let there are two series Y1 and Y2. When the series Y1 is merged into the series Y2,
it is known as “Forward Splicing” and when series Y2 is merged into series Y1, it is
known as “Backward Splicing”.

Stock Market Index:

It represents the entire stock market. It shows the changes taking place in the stock
market. Movement of index is also an indication of average returns received by the
investors. With the help of an index, it is easy for an investor to compare performance as
it can be used as a benchmark, for e.g. a simple comparison of the stock and the index
can be undertaken to find out the feasibility of holding a particular stock.
Each stock exchange has an index. For instance, in India, it is Sensex of BSE and Nifty of
NSE. On the other hand, in outside India, popular indexes are Dow Jones, NASDAQ, FTSE
etc.
(a) Bombay Stock Exchange Limited: It is the oldest stock exchange in Asia and
was established as “The Native Share & Stock Brokers Association” in 1875. The

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Securities Contract (Regulation) Act, 1956 gives permanent recognition to Bombay

Stock Exchange in 1956. BSE became the first stock exchange in India to obtain such
permission from the Government under the Act. One of the Index as BSE Sensex
which is basket of 30 constituent stocks. The base year of BSE SENSEX is 1978-79
and the base value is 100 which has grown over the years and quoted at about 592
times of base index as on date. As the oldest Index in the country, it provides the
time series data over a fairly long period of time ( from 1979 onward).

(b) National Stock Exchange: NSE was incorporated in 1992. It was recognized as a
stock exchange by SEBI in April 1993 and commenced operations in 1994.NIFTY50 is
a diversified 50 stocks Index of 13 sectors of the economy. The base period of NIFTY
50 Index is 3 November 1995 and base value is 1000 which has grown over years
and quoted at 177 times as on date.

Computation of Index
Following steps are involved in calculation of index on a particular date:
• Calculate market capitalization of each individual company comprising the index.
• Calculate the total market capitalization by adding the individual market
capitalization of all companies in the index.
• Computing index of next day requires the index value and the total market
capitalization of the previous day and is computed as follows:

Total market capitalisation for current day

IndexValue=Index on Previous Day x
Total market capitalisation for previous day

• It should also be noted that Indices may also be calculated using the price weighted
method. Here, the share price of the constituent companies forms the weight.
However, almost all equity indices worldwide are calculated using the market
capitalization weighted method.

• It is very important to note that constituents’ companies does not remain the same.
Hence , it may be possible the stocks of the company constituting index at the time
of index inspection , may not be aprt of index as on date and new companies stock
may have replaced them.

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CPI- Consumer Price Index/ Cost of living Index or Retail Price Index is the Index which
measures the effect of change in prices of basket of goods and services on the purchasing
power of specific class of consumer during any current period w.r.t to some base period.
WPI- Whole Sale Price Index - The WPI measures the relative changes in prices of
commodities traded in wholesale market.

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CLASSWORK SECTION

SIMPLE / UNWEIGHTED INDEX NUMBER :

1. From the following table by the method of relatives using Arithmetic mean the price
Index number is

Commodity Wheat Milk Fish Sugar

Base Price 5 8 25 6
Current Price 7 10 32 12

a) 140.35 b) 148.25 c) 140.75 d) None of these.

2. From the following data

Commodities Base year Current year

A 25 55
B 30 45

Then index numbers from G. M. Method is :

a) 181.66 b) 185.25 c) 181.75 d) None of these.

WEIGHTED INDEX NUMBER :

3. From the following data for the 5 groups combined

Group Weight Index Number

Food 35 425
Cloth 15 235
Power & Fuel 20 215
Rent & Rates 8 115
Miscellaneous 22 150

The general Index number is

a) 270 b) 269.2 c) 268.5 d) 272.5

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4. In calculating a certain cost of living index number the following weights were used.
Food 15, Clothing 3, Rent 4, Fuel & Light 2, Miscellaneous 1. Calculate the index for
the data when the average percentages rise in prices of items in the various groups
over the base period were 32, 54, 47, 78 & 58 respectively.
a) 139.76 b) 141.99 c) 141.76 d) 139.87

BASE SHIFTING
5. Shift the base period of the following series of index numbers from 1978 to 1985:

Year 1982 1983 1984 1985 1986 1987 1988

Index No. [Base 120 125 132 140 150 158 175
1978 =100]
a) 85.71, 89.29, 100, 94.29, 107.14, 112.86, 125
b) 85.71, 89.29, 94.29, 100, 107.14, 112.86, 125
c) 85.71, 89.29, 101.98, 94.29, 107.14, 112.86, 125
d) 85, 89, 94, 100, 107, 112, 125

CHAIN BASED AND FIXED BASED INDEX

6. From the following data

Year 1992 1993 1994 1995 1996

Link Index 100 103 105 112 108

(Base 1992 = 100) for the years 1993–96. The construction of chain index is:
a) 103, 100.94, 107, 118.72 b) 103, 108.15, 121.13, 130.82
c) 107, 100.25, 104, 118.72 d) None of these.

DEARNESS ALLOWANCES/ EXTRA ALLOWANCES

7. Net Monthly income of an employee was ` 800 in 1980. The consumer price Index
number was 160 in 1980. It is rises to 200 in 1984. If he has to be rightly compensated.
The additional dearness allowance to be paid to the employee is :
a) ` 240 b) ` 275 c) ` 250 d) 200

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MISCELLANEOUS SUMS
8. The price of a commodity increases from ` 5 per unit in 1990 to ` 7.50 per unit
in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units
in 1995. The price and quantity in 1995 are 150% and 75% respectively of the
corresponding price and quantity in 1990. Therefore, the product of the price ratio
and quantity ratio is:
a) 1.8 b) 1.125 c) 1.75 d) None of these.

THEORETICAL ASPECTS

9. _________ play a very important part in the construction of index numbers.

a) weights b) classes c) estimations d) none

10. The ________ makes index numbers time-reversible.

a) A.M. b) G.M. c) H.M. d) none

11. The ________ of group indices given the General Index

a) H.M. b) G.M. c) A.M. d) none

12. Factor Reversal test is satisfied by

a) Fisher’s Ideal Index b) Laspeyres Index
c) Paasches Index d) none

13. Laspeyre’s formula does not satisfy

a) Factor Reversal Test b) Time Reversal Test
c) Circular Test d) all the above

14. Sum of all commodity prices in the current year × 100

Sum of all commodity prices in the base year is
(a) Relative Price Index (b) Simple Aggregative Price Index
(c) both (d) none

15. When the product of price index and the quantity index is equal to the corresponding
value index then the test that holds is
(a) Unit Test (b) Time Reversal Test
(c) Factor Reversal Test (d) none holds

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16. Fisher’s Ideal Formula for calculating index numbers satisfies the _______ tests
a) Unit Test b) Factor Reversal Test
c) both d) none

17. If the index number of prices at a place in 1994 is 250 with 1984 as base year, then
the prices have increased on average by
a) 250% b) 150% c) 350% d) None of these.

18. Theoretically, G.M. is the best average in the construction of index numbers but in
practice, mostly the A.M. is used
a) false b) true c) both d) none

19. Time Reversal Test is represented by symbolically is :

a) P01 x Q01 = 1 b) I01 x I10 = 1
b) I01 x I12 x I23 x ... . I(n–1)n x In0 = 1 d) None of these.

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5A PROBABILITY
Theory of Chance

Probability

Subjective Objective

It is influenced by personal belief, bias, attitude, etc and this is used in decision
making management.

Definitions

a) Experiment or Random Experiment : When an operation or series of operations are

conducted under identical conditions it is called as experiment.

b) Sample Space : A set of all possible outcomes of a random experiment is called a

sample space (S or U). Sample space may be finite or infinite.

c) Event: The outcome of an experiment is called an event.

d) Elementary and Compound (or Composite) Events: An event is said to be elementary,

if it cannot be de-composed into simpler events. A composite event is an
aggregate of several elementary events.

e) Mutually Exclusive Events : Events are said to be mutually exclusive when the
occurrence of any one event excludes the occurrence of other or otherwise e.g. if a
coin is tossed occurrence of head and tail are mutually exclusive events because of
head will automatically exclude the occurrence of tail or vice versa.

f) Equally likely events: Events are said to be equality likely when they are equi-
probable i.e. the event should occur with same chance of occurrence (None can be
preferred over the other).

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g) Exhaustive events: The events are said to be exhaustive when they include all
possible outcomes. Events will necessarily occur.

h) Independent Events: Events are said to be independent of each other if happening

or non happening of any one of them is not affected by and does not affect the
happening of any one of others.
APPROACHES TO PROBABILITY
Classical or Mathematical or Empirical or Posteriori or Axiomatic
a Priori Statistical

1. Classical Definition of Probability

If a random experiment has “n” possible outcomes, which are mutually exclusive,
exhaustive and equally likely and “m” of these are favourable to any event A, then
the probability of the event A is defined as the ratio m/n, i.e.,

Note1:

a) Probability as defined above will always lie between 0 and 1, both inclusive i.e.,
0 ≤ P(A) ≤ 1 and P(A) ≥ 0.

b) If P(A) = 0, it means that event is impossible.

c) P(A) = 1 signifies that event is certain or sure event.

Note2:

Complementary Probability
Let P(A) be the Probability of occurrence of event A.
Then = Probability of non-occurrence of event A.

Note3:
a) , which implies that A and Ac are collectively exhaustive.

b) , which implies that A and Ac are mutually exclusive.

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Limitations Of Classical Probability

a. It fails if the no. of outcomes of an experiment. is very large n infinite ( ).

b. It fails if the outcomes are not equally likely.
c. The definition holds if the possible events are known well in advance.

2. Empirical or posteriori or Statistical definition

If a random exp. is repeated large no. of times say n under identical conditions & let
event A occurs m times then
P(A) =

3. Axiomatic definition
It is totally dependent on set theory
(i) P(A) ≥ 0 for all A S
(ii) P(S) = 1
(iii) If A & B are mutually exclusive events P(A B) = 0
P(A B) = P(A) + P(B).

Total Number of Outcomes

To find the total number of outcomes, when an experiment is conducted “n” times
in succession or with “n” objects only once.
Total outcomes = [No of outcomes in one experiment]n
Where “n” = either number of objects or number of times the experiment gets
repeated.

Examples:
a) 2 coins are tossed. Total outcomes = 22 = 4
b) A coin is tossed five times. Total outcomes = 25 = 32
c) 2 dice are rolled together. Total outcomes = 62 = 36

Concepts of ‘At least’, ‘At most’ and ‘At least one’

• At least
Let x = 0, 1, 2, 3, ... ..., n
Then, x is at least k, implies x ≥ k, which implies that x = k, (k+1), (k+2), ... ... n

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• At most
x is at most k implies x ≤ k, which means x = 0, 1, 2, ..., k

• At least One
x is at least one implies that x ≥ 1, i.e., x = 1, 2, 3, ... .., n
Hence, P(at least 1) = 1 – P(none) = 1 – P(0)

Facts about Card

• A well shuffled deck of 52 cards are bi-colored -26 red and 26 black
• There are 4 suits or categories
Clubs -13 Spades -13
Hearts -13 Diamonds-13

• In each category , there is 1 king , 1 Queen

1Jack or knave and 1 Ace( Ace implies 1)
Therefore,
King =4 King, Queen and Jack together are called Face cards.
Queen =4 King Queen Jack and Ace are together called Honour cards.
Jack =4 Total face Cards=4+4+4=12
Ace =4 Honour Cards =4+4+4+4(K,Q,J,A)

Rolling of Dice
 If a die is rolled outcomes are 1, 2, 3, 4, 5, 6
 It two unbiased dice are rolled, outcomes = 62 = 36.
Sample Space
1,1 2,1 3,1 4,1 5,1 6,1
1,2 2,2 3,2 4,2 5,2 6,2
1,3 2,3 3,3, 4,3 5,3 6,3
1,4 2,4 3,4 4,4 5,4 6,4
1,5 2,5 3,5 4,5 5,5 6,5
1,6 2,6 3,6 4,6 5,6 6,6

Observations:
A. Sum of faces on two Dice and the no. of ways of getting sum
Sum 2 3 4 5 6 7 8 9 10 11 12
No. of ways 1 2 3 4 5 6 5 4 3 2 1

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B. Distribution of sample space

Face F=S F>S F<S F Face on the First die
Cases 6 15 15 S Face on the Second die

No. of Children in a family

It treated same as in case of tossing of a coin.
For instance, if there are 3 children in a family, then outcomes = 23 = 8
(BBB) (BBG) (BGB) (BGG) (GBB) (GBG) (GGB) (GGG)

• Leap Year
A leap year contains 52 weeks and 2 extra days. These two extra days can be
either of the following out-comes:
(M, T) (T, W) (W, Th) (Th, F) (F, Sat) (Sat, Sun) (Sun, M)

• Simple drawing of Balls from Bag – Using Combination Techniques

A Bag contains m Red Balls and n Black Balls. Then if r balls are drawn, then it
can be done in ways.

Similarly use combination techniques to choose the required number of objects

from the total objects given.

THEORM OF TOTAL PROBABILITY (Rule of Addition)

Statement: if A and B are two events, not mutually exclusive, then the probability
of occurrence of at least any of the two events, A and B will be given by;
P (A B) or P (A+B) = P (A) + P (B) - P (A B) or P (AB)

Note 1: Union ( ) implies “OR” Addition (+)

Note 2: Intersection ( ) implies “AND” Multiplication (×)

Partitioning of events

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1. A and B (A B) or AB
2. A and not B A but not B A BC A - (A B)
3. B but not A B and not A B AC B - (A B)
4. Neither A nor B A “not” and B “not” AC BC
5. AC = (3) + (4)
6. BC = (1) + (4)
7. AC BC = (1) + (3)+ (4) = [2]C = (A B)C
8. AC BC = [4] =[1 + 2+ 3]C = (A B)C

Proof of P (A B):

Hence proved
Note 1:
For 3 events, A, B and C, not mutually exclusive, +

Note 2:
When A and B are mutually exclusive, the two sets are disjoint and accordingly
and

Note 3:
When 3 events A, B and C are mutually exclusive then
=0 and accordingly

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Note 4:
When 3 events A, B and C are mutually exclusive and collectively exhaustive then,

Note 5:
Working Rules:
i. P(A BC) = P(A) – P(A B)
ii. P(AC B) = P(B) – P(A B)
iii. P(AC U BC) = P(A B)C = 1 – P(A B)
iv. P(AC BC) = P(A U B)C = 1 – P (A U B)
v. P(AC U B) = P(AC) + P(B) – P(AC B)
vi. P(A U BC) = P(A) + P(BC) – P (A BC)

CONCEPT OF ‘ODDS IN FAVOR’ AND ‘ODDS AGAINST’

• Odds in favor of an event is defined as ‘the ratio of the favorable to the

unfavorable cases and is denoted by u : v
Where,
U = favorable cases and
V = unfavorable cases

• Odds against an event A is defined as ‘the ratio of the unfavorable to the

favorable cases and is given by v : u
Where,
U = favorable cases
V = Unfavorable cases

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THEOREM OF COMPOUND PROBABILITY (RULE OF MULTIPLICATION)

Statement:
If A and B are two events, not mutually independent, then the probability of joint
or simultaneous occurrence of the two events A and B would be given by the
product of the probability of event A and the conditional probability of event B
assuming that, A has already occurred,

Symbolically, the fact is expressed as,

Similarly product of the probability B and the conditional probability of event A

assuming that, B has already occurred, is given by

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Note 2:
When the events A and B are independent, in such a case

Note 3:
a. When the events A and B are independent, then,

Hence, proved

b. When the events A and B are independent, then,

Hence, proved

Note 4:
For three events, A, B and C which are not independent,

Note 5:
When 3 events, A and B and C are independent,

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Note 6:
Two events A and B are,
i. Mutually exclusive, if
ii. Independent, if
iii. Equally likely, if
iv. Exhaustive, if
v. Mutually exclusive and exhaustive e, if

Note 7:
Two events with non-zero probability cannot be simultaneously mutually
exclusive and independent.

Note 8:
If two events A and B are independent, then
i. AC and BC are independent
ii. A and BC are independent
iii. AC and B are independent

Note 9:
If are n events, then the number of conditions to be satisfied for
proving their mutual independence are

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CLASSWORK SECTION

Children in a Family
In a family of three children there is at least one girl. Find the probability that;

1. There are at least two girls.

a) 4/7 b) 2/7 c) 2/8 d) 1/7

2. There is exactly 1 boy.

a) 1/8 b) 2/7 c) 3/7 d) 1/7

Drawing of Balls from Bag

From a bag containing 7 white and 5 red balls, 4 balls are drawn at random. What is the
chance that;

3. All are red.

a) 5/495 b) 1/495 c) 3/495 d) None of these

4. Three white and one red.

a) 165/495 b) 185/495 c) 175/495 d) 195/495

Addition Theorem
A number is selected at random from a set of first 120 natural numbers. What is the
probability that it is divisible by:

5. 5 or 6
a) 1/3 b) 1/4 c) 2/12 d) None of the above

Formula
If P(A) = 1/4 , P(B) = 2/5, P(A B) = 1/2 . Find:

6. P(A Bc)
a) 3/20 b) 1/10 c) ¼ d) ½

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7. P(Ac Bc)
a) 3/20 b) 1/10 c) ¼ d) ½

8. P(Ac/Bc)
a) 4/10 b) 5/10 c) 6/10 d) None of the above

Independent Events

9. If for two independent events A and B, P(A U B) = 2/3 and P(A) = 2/5, what is P(B)?
a) 4/15 b) 4/9 c) 5/9 d) 7/15

A problem in Statistics is given to three students A, B and C whose respective chances of

solving are 1/3, 1/4, 1/5. Find the probability that:

10. It is solved by at least 2 of them.

a) 2/6 b) 1/6 c) 5/6 d) None of these

Odds in Favour / Odds Against

11. The odds that a book will be favorably reviewed by three independent critics are
5 to 2, 4 to 3, and 3 to 4 respectively. What is the probability that majority of the
critics reviewed the book favorably?
a) 225 / 343 b) 209 / 343 c) 391 / 400 d) 420 / 840

Bags and Balls – Important Cases

Case: 2 – Two bags are given, a bag is chosen at random, then ball(s) is/are drawn

A bag contains 5 red and 3 black balls and another bag contains 4 red and 5 black balls.
A bag is selected at random and a ball is selected. Find the chance that:

12. It is red.
a) 77 / 177 b) 87 / 144 c) 97 / 854 d) 77 / 144

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Case: 3 – Two bags are given, 1 ball is chosen from Bag 1 and transferred to Bag 2. Now
a ball is drawn from Bag 2

There are two bags. The first contains 2 red and 1 white ball, whereas the 2nd bag
contains 1 red and 3 white balls. One ball is taken out at random from the 1st bag and
put into second bag. Then a ball is chosen at random from the second bag. What is the
probability that;

13. The last ball is red.

a) ½ b) 1/3 c) ¼ d) 1/5

Miscellaneous Cases

14. For a group of students, 30 %, 40% and 50% failed in Physics , Chemistry and at
least one of the two subjects respectively. If an examinee is selected at random,
what is the probability that he passed in Physics if it is known that he failed in
Chemistry?
a) 1/2 b) 1/3 c) 1/4 d) 1/6

15. Four digits 1, 2, 4 and 6 are selected at random to form a four digit number. What
is the probability that the number so formed, would be divisible by 4?
a) 1/2 b) 1/5 c) 1/4 d) 1/3

Theoretical Aspects

16. An experiment is known to be random if the results of the experiment

a) Can not be predicted
b) Can be predicted
c) Can be split into further experiments
d) Can be selected at random.

17. Which of the following pairs of events are mutually exclusive?

a) A : The student reads in a school. B : He studies Philosophy.
b) A : Raju was born in India. B : He is a fine Engineer.
c) A : Ruma is 16 years old. B : She is a good singer.
d) A : Peter is under 15 years of age. B : Peter is a voter of Kolkata.

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18. If P(A B) = 0, then the two events A and B are

a) Mutually exclusive b) Exhaustive
c) Equally likely d) Independent.

19. If for two events A and B, P(AUB) = 1, then A and B are

a) Mutually exclusive events b) Equally likely events
c) Exhaustive events d) Dependent events.

20. If an unbiased coin is tossed once, then the two events Head and Tail are
a) Mutually exclusive b) Exhaustive
c) Equally likely d) All these (a), (b) and (c).

21. If P(A/B) = P(A), then

a) A is independent of B b) B is independent of A
c) B is dependent of A d) Both (a) and (b).

22. If two events A and B are independent, then

a) A and the complement of B are independent
b) B and the complement of A are independent
c) Complements of A and B are independent
d) All of these (a), (b) and (c).

23. If two events A and B are mutually exclusive, then

a) They are always independent b) They may be independent
c) They can not be independent d) They can not be equally likely.

24. If a coin is tossed twice, then the events ‘occurrence of one head’, ‘occurrence of 2
heads’ and ‘occurrence of no head’ are
a) Independent b) Equally likely
c) Not equally likely d) Both (a) and (b).

25. P(B/A) is defined only when

a) A is a sure event b) B is a sure event
c) A is not an impossible event d) B is an impossible event.

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26. For two events A and B, P(A B) = P(A) + P(B) only when
a) A and B are equally likely events
b) A and B are exhaustive events
c) A and B are mutually independent
d) A and B are mutually exclusive.

27. For any two events A and B,

a) P(A) + P(B) > P(A B) b) P(A) + P(B) < P(A B)
c) P(A) + P(B) P(A B) d) P(A) x P(B) P(A B)

28. According to the statistical definition of probability, the probability of an event A is the
a) limiting value of the ratio of the no. of times the event A occurs to the number
of times the experiment is repeated
b) the ratio of the frequency of the occurrences of A to the total frequency
c) the ratio of the frequency of the occurrences of A to the non-occurrence of A
d) the ratio of the favourable elementary events to A to the total number of
elementary events.

29. If P(A–B) = P(B–A), then the two events A and B satisfy the condition
a) P(A) = P(B). b) P(A) + P(B) = 1
c) P(A B) = 0 d) P(A B) = 1

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RANDOM VARIABLE
5B Theory of Expectation )

A. RANDOM VARIABLES

Definition of Random Variables or Stochastic Variable

1. A variable whose value is determined by the outcome of a random experiment
is called a random variable.

2. In other words, a random variable “x” is a real valued function defined on a

sample space “S” of a random experiment such that for each point ‘x’ on the
sample space f(x) = probability of the occurrence of the event represented by x.

3. Random Variables are also known as Chance Variables

e.g. If we toss 3 coins then S = {HHH, HHT, HTH, HTT, THH, THT, TTH, TTT}.

If ‘X’ denotes the number of heads obtained then ‘x’ assumes the following
values with the corresponding probabilities.

X 0 1 2 3
P(x) 1/8 3/8 3/8 1/8

These values of ‘x’ {0,1,2,3} are called the values of the random variables
which are the outcomes of a random experiment.

4. Random Variables can be divided into the following two categories. They are
a. Discrete Random Variable
b. Continuous Random Variable

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A. Discrete Random Variable

Definition : If a variable can assume only discrete set of values i.e. a finite
set of values or countably infinite set of values then it is called a Discrete
Random Variable. In other words, discrete random variable can assume only
whole numbers. (0, 1, 2, 3...........) e.g. In a roll of a die the random variable x
assumes values {1, 2, 3, 4, 5, 6}, these are discrete random variables.

B. Continuous Random Variables

Definition : If a random variable can assume an uncountably infinite number
of values or all real numbers in a given interval is called Continuous Random
Variable. E.g. height or weight of a person is an example of continuous random
variable.

5. Concept of Probability Function of a Random Variable

A. For a discrete random variable, the probability function f(x) = P(X = xi) is called
Probability Mass Function (p. m. f.) of a discrete random variable ‘x’ which
satisfies the following two conditions (i) f(x) ≥ 0 (ii) ∑f(x) = 1

B. If ‘x’ is a continuous random variable the probability function f(x) is called

Probability Density Function (p. d. f.) which has the following two properties
(i) f(x) ≥ 0
(ii) where a ≤ x ≤ b is the range of ‘x’. Since the continuous random
variable can assume any real value, therefore Random Variable can be
any real number.

C. For a Continuous Random Variable, the probability of occurrence of any specific

value is 0 because for a continuous variable, probability are associated only
with intervals of numbers.

B. MATHEMATICAL EXPECTATION OR EXPECTED VALUE OR MEAN

Definition of Mathematical Expectation or Expected value or Expectation of
Random Variable “X”
Let x1, x2, x3 ..... xn be a set of n values of a variable “X” with the corresponding
probabilities of occurrences p1, p2, p3, ....pn then the mathematical expectation
or Expectation or Expected value of random variable “X” is given by
E(x) = x1p1 + x2p2 + .... + xnpn =

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E.g. Calculation of Expectation of ‘x’ (where ‘x’ are the random variables
generated as a result of throwing an unbiased die)

X P XP
1 (x1) 1/6 (p1) 1/6 (x1p1)
2 (x2) 1/6 (p2) 2/6 (x2p2)
3 (x3) 1/6 (p3) 3/6 (x3p3)
4 (x4) 1/6 (p4) 4/6 (x4p4)
5 (x5) 1/6 (p5) 5/6 (x5p5)
6 (x6) 1/6 (p6) 6/6 (x6p6)

Therefore E(x) = ∑xp = 21/6 = 3.5 i.e.

Properties of Mathematical Expectation

1. E(x) = = mean of random variable ‘x’.

2. E(x) can assume any real number since ‘x’ can assume any real value.

3. If all the value of the random variable ‘x’ are equal then E(x) will be equal to
constant. i.e. E(c) = c

4. E(x ± y) = E(x) ± E(y)

5. E(xy) = E(x) E(y) provided x and y are independent

6. E(cx) = c. E(x) e.g. E(5x) = 5 E(x)

7. E(a ± bx) = a ± bE(x)

e.g. given that E(x) = 5 find E(2 -3x)?
E(2 – 3x) = 2 – 3 E(x)
= 2 – 3 (5) = -13

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8. E(ax ± by) = aE(x) ± bE(y)

e.g. given that E(x) = 3 and E(y) = 4 find E(7x + 9y)?
E(7x + 9y) = 7E(x) + 9E(y) = 7 (3) + 9 (4) = 21 + 36 = 57

9. E(x - )=0
Proof
E(x - ) = E(x) – E( ) = - (since E(x) = = mean is constant) = 0

10. Variance and Standard Deviation of a Random Variable X

A. Definition : Variance of a random variable X is defined as the Arithmetic Mean

of the Square of Deviations taken about Arithmetic Mean i.e.

B. Symbolically
= A. M of (x – )2
= expectation of (x – )2 [Since expectation = A. M]

Where = E(X) = Mean of the random variable X

C. or variance of x is also denoted by Var (X) or V(X) and V(X) = E(x – )2 = E(x2)
– [E(x)]2
Proof :

D. Thus V(X) = E(x2) – [E(x)]2 = ∑x2p – (∑xp)2

E. Standard Deviation of x i.e. S.D. (X) = = =

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11. Properties of Variance and Standard Deviation

1. When all the value of the variable are equal :
Variance = 0 and S.D. = 0 i.e. V(C) = 0 where C is any constant.
e.g. V(2) = 0

2. Var(aX) = a2V(X)
e.g. Given V(X) = 3
Calculate V(3X)
Solution :
V(3X) = 9V(X) = 9(3) = 27

3. Var(a bx) = b2 V(X) [ Var(a) = 0]

e.g. Given V(X) = 2
Find : (i) V(3 + 2x), (ii) V(2 – 3x)
Solution : (i) (3 + 2x) = 4V(X) = 4 (2) = 8, (ii) V(2 – 3x) = 9V(X) = 9 (2) = 18

4. Var (aX bY) = a2 V(X) + b2 V(Y)

e.g. Given V(X) = 4 and V(Y) = 9 Find
Find : (i) V(7X + 4Y), (ii) V(2X + 3Y)
Solution:
(i) V(7X – 4Y) = 49V(X) + 16V(Y) (ii) V(2X + 3Y) = 4V(X)+ 9V(Y)
= 49 × 4 + 16 × 9 = 4×4+9×9
= 196 + 144 = 340 = 16 + 81 = 97

CONCEPT OF UNIFORM DISTRIBUTION (DISCRETE VARIABLE)

1. If a discrete random variable ‘x’ assumes n possible values namely x1 x2, ....xn
with equal probabilities, then the probability of its taking any particular value is
always constant and is equal to (1/n). The p.m.f (Probability Mass Function) of such
distribution is given by f(x) = 1/n where x = x1 x2, .... xn. These distributions are known
as Uniform Distribution because the probability is uniform for all values of x.

e.g. Probability Distribution of the no. of points in a throw of a die.

x 1 2 3 4 5 6
p

2. Mean of Uniform Distribution is : and variance of uniform distribution is

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CLASSWORK SECTION

Theoretical Aspect

1. When X is a continuous function, f(X) is called:

a) Probability mass function
b) Probability density function
c) Both a) and b)
d) None of the above

2. If P(a) = 0, P(b) = 1/3, P(c) = 2/3, then s = a, b, c is a probability space.

a) True b) False
c) Both true and false d) None of the above

3. For a probability distribution, ________ is expected value of x.

a) Median b) Mean
c) Mode d) None of the above

Probability Mass Function (P.M.F)

4. Let X be a random variable assuming values -3, 6 and 9 with probabilities 1/6, ½
and 1/3 respectively. Then find the value of E(X), E(X2) and E(2X+1)2
a) 5.5, 46.5, 209 b) 6.5, 45.5, 207
c) 6, 40, 200 d) None of these

5. A player tosses three fair coins. He wins Rs. 12 if three tails occur, Rs. 7 if two tails
occur and Rs. 2 if only one tail occurs. If the game is fair, how much should he win
or lose in case no tail occurs?
a) Loss of Rs. 39 b) Income of Rs. 39
c) Neither Income nor Loss d) None of the above

6. A man draws 2 balls from a bag containing 3 white and 6 black balls. If he is
to receive Rs. 14 for every white ball and Rs. 7 for every black ball; what is his
expectation?
a) 18.67 b) 19.25 c) 20.25 d) 25.19

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7. A number is chosen at random from the set 1, 2, 3, ...., 100 and another number
is chosen at random from the set 1, 2, 3 ..., 50. What is the expected value of their
product?
a) 5151 b) 5151/4 c) 5151/2 d) None of the above

A random variable x has the following probability distribution:

X: 0 1 2 3 4 5 6 7
P(x): 0 2k 3k k 2k k2 7k2 2k2+k

8. What is the value of k?

a) 1 / 2 b) 1 / 8 c) 1 / 9 d) 1 / 10

9. What is the value of P(x < 6)?

a) 0.19 b) 0.80 c) 0.81 d) 0.91

10. What is the value of P(0 < x < 5)?

a) 0.19 b) 0.29 c) 0.80 d) 0.91

A probability mass function for a random variable x is given as:

11. The expected value of sum of points on n unbiased dice is:

a) b)

c) d)

UNIFORM DISTRIBUTION

12. The probability distribution whose frequency function f(x) = 1/n,

x = x1, x2, ..., xn is known as:
a) Binomial distribution b) Poisson distribution
c) Normal distribution d) Uniform distribution

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13. If a discrete random variable x follows uniform distribution and assumes only the
values 8, 9, 11, 15, 18, 20. Then find P(|x – 14| < 5).
a) 1 b) ½ c) 2/3 d) 1/3

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6 THEORETICAL DISTRIBUTION

THEORETICAL DISTRIBUTION
(Exist in theory as well as real life)
1. Theoretical Distribution is a distribution where the values of a variable are distributed
according to some definite mathematical laws.

2. In other words, Theoretical Distributions are mathematical models; where the

frequencies/probabilities are calculated by mathematical computation.

3. Theoretical Distribution are also called as Expected Variance Distribution or

Frequency Distribution

THEORETICAL DISTRIBUTION

A. Binomial Distribution (Bernoulli Distribution)

1. The probabilities of ‘x’ number of success or the p.m.f (Probability Mass Function) of
a Binomial Distribution is given by :
P(x) =
where, p = probability of success
q = probability of failure=(1-p)
‘x’= no. of success
And (n –x) = no. of failures
Note 1: Sum of powers of p and q will always add up to ‘n’ irrespective of no. of success.
Note 2: There are(n + 1) possible value of ‘x’ i.e. x = { 0,1,2,3,..... ,n}

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2. This distribution is a discrete probability Distribution where the variable ‘x’ can
assume only discrete values i.e. x = 0, 1, 2, 3,....... n

3. This distribution is derived from a special type of random experiment known as

Bernoulli Experiment or Bernoulli Trials, which has the following characteristics

(i) Each trial must be associated with two mutually exclusive & exhaustive
outcomes – SUCCESS and FAILURE. Usually the probability of success is denoted
by ‘p’ and that of the failure by ‘q’ where q = 1-p and therefore p + q = 1.
(ii) The trials must be independent under identical conditions.

(iii) The number of trial must be finite (countably finite).

(iv) Probability of success and failure remains unchanged throughout the process.

Note 1 : A ‘trial’ is an attempt to produce outcomes which is neither sure nor impossible
in nature.

Note 2 : The conditions mentioned may also be treated as the conditions for Binomial
Distributions.

4. Characteristics or Properties of Binomial Distribution

(i) It is a bi parametric distribution i.e. it has two parameters n & p where
n = no. of trials
p = probability of success.

(ii) Mean of distribution is np.

(iii) Variance = npq
(iv) Mean is greater than variance always i.e. np > npq.
(v) SD =
(vi) Maximum variance is equal to (n/4)
(vii) Binomial Distribution may be Symmetrical or Asymmetrical (i.e. skewed) where
q > p; i.e. P > ½ its positively skewed and when q < p i.e. P > ½ its negatively
skewed.
When q = p = 0.5 skewness is equal to zero. In such a case, the distribution is
said to be symmetrical.

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(viii) Binomial Distribution may be Uni-Modal or Bi-Modal depending on the values

of the parameters n & p.

Case I : When (n + 1).p is not an integer the distribution is uni-modal and the
greatest integer contained in (n+1) p is the value of the mode.
E.g. n = 6; p = 1/3; find modal value.

Solution : (n + 1)p = (6 + 1) x 0.3

= 7 x 0.3 = 2.1 which is not an integer. Hence the given distribution is
unimodal and the value of mode is equal to 2 (Greatest integer integral
value in 2.1)

Case II: When (n + 1)p is an integer; the distribution is bi-modal and the modal
values are (n+1)p and (n+1)p – 1 respectively.
E.g. n = 7 and p = 0.5; find mode or modes.

Solution : (n +1)p = (7 + 1)p

= 8(0.5)
= 4. Which is an integer.
Hence the two modes are :4 & (4 -1) =3

(ix) Additive Property of Binomial Distribution: If ‘x’ and ‘y’ are two independent
binomial variates with parameters(n1,p) and (n2,p) respectively,then x + y will
also follow a binomial distribution with parameters {(n1 + n2), p} Symbolically
the fact is expressed as follows:
X ~ B (n1,p)
Y ~ B (n2,p)
X + Y ~ B(n1 + n2, p)

(x) The method applied for fitting a binomial distribution to a given set of data is
called “Method of Moments”.

5. The distribution is called Binomial as the probabilities can be obtain by deferent

terms of the expansion of Binomial series (q+p)n

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CLASSWORK SECTION

1. If in a Binomial distribution mean 20; S.D. = 4, then p is equal to:

a) 1/5 b) 2/5 c) 3/5 d) 4/5

2. Mean =10, SD= , Mode=

a) 10 b) 12 c) 9 d) 8

3. X is binomial variable with n = 20, what is the mean of X if it is known that x is

symmetric?
a) 5 b) 10 c) 2 d) 8

4. What is the probability of making 3 correct guesses in 5 True – False answer type
questions?
a) 0.3125 b) 0.5676 c) 0.6875 d) 0.4325

6 coins are tossed. Find the probability of getting

5. The probability that a student is not a swimmer is 4/5, then the probability that out
of five students four are swimmers is

a) b) c) d) None of these

6. At least 3 successes.
a) 80 / 243 b) 192 / 243 d) 77 / 243 d) None of the above

A man takes a step forward with a probability 0.6 and a step backward with a probability
of 0.4. Find the probability that at the end of 11 steps, the man is:

7. If x and y are 2 independent binomial variable with parameters 6 and ½, 4 and ½

respectively, what is P(x + y ≥ 1)?
a) 1023/1024 b) 1056/1923
c) 1234/2678 d) None of the above

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8. Assuming that one-third of the population is tea drinkers and each of 1000
enumerators takes a sample of 8 individuals to find out whether they are tea
drinkers or not, how many enumerators are expected to report that five or more
people are tea drinkers?
a) 100 b) 95 c) 88 d) 90

Calculation of Parameters

9. A binomial random variable x satisfies the relation 9P(x = 4) = P(x =2) when n = 6.
Find the value of the parameter ‘P’?
a) 1 / 2 b) 1/3 c) 1/4 d) 1 / 5

Theoretical Aspect

10. Binomial distribution is a:

a) Discrete Probability Distribution
b) Continuous Probability Distribution
c) Both a) and b) above
d) Neither a) nor b) above

11. The important characteristic(s) of Bernoulli trials is:

a) Trials are independent
b) Each trial is associated with just two possible outcomes.
c) Trials are infinite
d) Both a) and b) above

12. The mean of binomial distribution is :

a) Always more than its variance
b) Always equal to its standard deviation
c) Always less than its variance
d) Always equal to its variance

13. The maximum value of the variance of a Binomial distribution with parameters
and pis :

a) b) c) d)

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14. For a binomial distribution, there may be

a) one mode b) two mode c) zero mode d) (a) or (b)

15. For n independent trials in Binomial distribution, the sum of the powers of p and q
is always n,whatever be the number of successes.
a) True b) False
c) both of a) and b) above d) None of the above

16. For a binomial distribution if variance = mean/2, then the values of n and p will be
a) 1 and 1/2 b) 2 and 1/2 c) 3 and ½ d) Any value and 1/2

Theory Answer Key

10 a 11 d 12 a 13 c 14 d
15 b 16 a

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B. POISSON DISTRIBUTION
1. The probability of ‘x’ no. of success or the p.m.f (Probability Mass Function) of a
Poisson Distribution is given by

P(x) = ( ‫ = ג‬m)
where x = desired no. of success.
e 2.71828
Note1: ( = m) Mean = variance = parameter of the distribution
Note2: is a constant and the value of which can be obtained from the table.
Note3: When the parameter ‘m’ is not provided but n and p are provided we shall
use m = np for evaluating the parameter.

2. It is a discrete probability distribution where the variable ‘x’ can assume values ‘x’=
0, 1, 2, 3,......∞.

3. This distribution is a limiting case of Binomial Distribution when
(i) n → ∞ (i.e. no. of trials become very large)
(ii) p → 0, (i.e. probability of success is very small)
(iii) q → 1, (i.e. probability of failure is very high)
(iv) np is finite and constant which is denoted by ‘m’ i.e. np = m or

4. Some examples of Poisson Distribution:

(i) No. of telephones calls per minute at a switch board
(ii) The no. of printing mistake per page in a large text.
(iii) The no. of cars passing a certain point in 1 minute
(iv) The emission of radio active (alpha) particles.

5. The conditions under which the Poisson Distribution is used or the condition for
Poisson Model are as follows:
(i) The probability of having success in a very small time interval (t, t + dt) is K. dt
(where k > 0 and is constant)
In other words, probability of success in a very small time interval is directly
proportional to time internal dt.
(ii) The probability of having more than one success in this time interval is very low.
(iii) Statistical independence is assumed i.e. the probability of having success in
this time interval is independent of time ‘t’ as well as of the earlier success.

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6. Poisson Distribution is also known as “Distribution of Improbable Events” or

“Distribution of Rare Events”.

7. Characteristic or Properties of Poisson Distribution.

(i) Poisson Distribution is uniparametric i.e. it has only one parameter ‘m’ or ‘ ’
(ii) Mean of distribution = m
(iii) Variance = m
(iv) In poisson distribution mean = variance and hence they are always positive
(v) SD =
(vi) Since ‘m’ is always positive Poisson Distribution is always positively skewed.
(vii) The distribution can be either unimodal or bimodal depending on values of m.

Case I : When ‘m’ is not an integer then the distribution is uni-modal and the
value of the mode will be highest integral value contained in ‘m’.
E.g. m = 5.6 then modal value is 5 (greatest integer contained in 5.6)

Case II: When ‘m’ is an integer; the distribution is bimodal and the modal values
are m, m – 1
E.g . if ‘m’ = 4 (an integer, hence the distribution is bimodal and the modes
are 4 and 4 – 1 i.e. 4 and 3)

(viii) Additive Property of Poisson Distribution: If ‘x’ and ‘y’ are two independent
Poisson Variates with parameters(m1) and (m2) respectively then (x + y) will
also follow a Poisson Distribution with parameter (m1 + m2). Symbolically the
fact is expressed as follows: X ~ P (m1), Y ~ P (m2)
X + Y ~ P(m1 + m2) provided x and y are independent

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CLASSWORK SECTION

1. In a Poisson Distribution P(X = 0) = P(X = 1) = k, the value of “k” is:

a) 1 b) c) d)

2. If x is Poisson variety with a parameter 4 find the Mode of the Distribution?

a) 4,2 b) 4,3 c) 4,4 d) None

Between 4 and 5 PM, the average number of phone calls per minute coming into the
switchboard of the company is 3. Find the probability that in one particular minute there
will be: (Given e-3 = 0.0498)

3. Exactly 2 phone calls

a) 0.1422 b) 0.2214 b) 0.2251 d) 0.2241

It is found that the number of accidents occurring in a factory follows Poisson distribution
with a mean of 2 accidents per week. (Given e-2 = 0.1353)

4. A radioactive source emits on the average 2.5 particles per second. Calculate that
2 or more particles will be emitted in an interval of 4 seconds.
a) b) c) d) None of the above

5. A renowned hospital usually admits 200 patients every day. One per cent patients,
on an average, require special room facilities. On one particulars morning, it was
found that only one special room is available. What is the probability that more
than 3 patients would require special room faculties?
a) 0.1428 b) 0.1732 c) 0.2235 d) 0.3450

Binomial Approximation to Poisson Distribution

Experience has shown that, as the average, 2% of the airline’s flights suffer a minor
equipment failure in an aircraft. Estimate the probability that the number of minor
equipment failures in the next 50 flights will be(e-1=.3679)

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6. In a company manufacturing toys, it is found that 1 in 500 is defective. Find the

probability that there will be at the most two defectives in a sample of 2000 units.
[Given e-4 = 0.0183]
a) 0.2597 b) 0.3549 c) 0.2549 d) 0.2379

Miscellaneous Problems

7. A car hire firm has 2 cars which is hired out every day. The number of demand per
day for a car follows Poisson distribution with mean 1.20. What is the proportion of
days on which some demand is refused?
(Given e1.20 = 3.32)
a) 0.25 b) 0.3012 c) 0.12 d) 0.03

Theoretical Aspects

8. Which one is uni-parametric distribution?

a) Normal Distribution b) Poisson Distribution
c) Hypergeometric Distribution d) Binomial Distribution

9. __________ Distribution is a limiting case of Binomial distribution.

a) Normal Distribution b) Poisson Distribution
c) Chi-Square Distribution d) (a) & (b) both

10. Poisson distribution may be

a) Bimodal b) Uni modal
c) Multi Modal d) Either a) or b) above and not c)

11. For a Poisson distribution

a) Standard Deviation and Variance are equal.
b) Mean and Variance are equal.
c) Mean and Standard Deviation are equal.
d) Both a) and b) above

12. In Poisson Distribution, probability of success is very close

a) 1 b) 0.8 c) 0 d) None of the above

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13. Poisson distribution is

a) Always negatively skewed b) Always positively skewed
c) Always symmetric d) Symmetric only when m = 2

Theoretical Aspect Answer Key

8 B 9 D 10 D
11 B 12 C 13 B

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C. NORMAL OR GAUSSIAN DISTRIBUTION

1. It is a continuos probability distribution where the variable ‘X’ can assume any value
between –

2. The Probability Density Function of a Normal Distribution is given by

where = mean
= Standard Division

Note 1 : and are the two parameters of Normal Distribution and hence it is
bi-parametric in nature.

Note 2 : 3.1416 and e 2.71828 which are constant.

3. Replacing by ‘z’ we obtain another distribution called Standard Normal

Distribution with mean 0 and S.D. 1 and is given by the density function

f(z) =

Note1 : implies Normal Distribution with (mean) and (variance)

Note2 : N(0,1) implies Standard Normal Distribution with Mean = 0 and S.D. = 1.

Note3 : ‘z’ is called Standard Normal Variate or Variable.

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4. Caculation of Mean & S.D. of Z

(i) Calculation of Mean of Z (ii) Calculation of Variance of z

5. The probability of success under Normal Distribution in calculated by evaluating the

area under a curve called Normal Frequency curve which in shown in the following
diagram
Normal Curve

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Standard Normal Curve

Mean = Median = Mode = 0

6. CONVERSION OF X VALUES FROM NORMAL FREQUENCY CURVE TO STANDARD

NORMAL CURVE VALUES (Z - VALUES)

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PROPERTIES OF NORMAL CURVE AND NORMAL DISTRIBUTION

1. It is a bell shaped curve symmetrical about the line x = and assymptotic to the horizontal
axis (x = axis)

2. The two tails extend upto infinity at both the ends.

3. As the distance from the mean increases, The curve comes closer to the horizontal axis
(x = axis)

4. The curve has a single peak at x = .

5. The two points of inflection of the normal curve are at x = and x = respectively
where the normal curve changes its curvature.

6. The same points of inflection under standard normal curve are at z = – 1 and z = 1.

7. It is a continous prob. distribution where - ∞ < χ < ∞

8. The distribution has two parameters and . Where = mean = standard deviation.
Hence normal is bi-parametric distribution.

9. The normal curve has a single peak. Hence it is unimodal and mean. Median and mode
coincide. at x = .

10. The maximum ordinate (i.e. y) lies at x = .

11. The distribution being symmetrical,

i) Mean = Median = Mode
ii) Skewness = 0

12. The two Quartiles are Q1 = – .675 (Lower Quartile)

And Q3 = + .675 (Upper Quartile)

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13. Quartile Deviation (Q. D.)

2
= 3
(Approximately)

4
14. Mean Deviation (M. D.) = 0.8 = (Approximately)
5

15. QD : MD : SD = 10 : 12 : 15

16. (i) The total area under the Normal or Standard Normal Curve = 1 ( Total Probability =
1), Symbolically,

(ii) f(x) 0 for all X

17. The curve being Symmetrical,

divides curve into two equal halves
such that (Area between – )
= (Area between to + ) = 0.5

18. Similarly, under standard normal curve,

(area between – to z = 0)
= (area between z = 0 to z = + ) = 0.5

19. Symbilically

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20. The curve being symmetrical area of portions cut off from right and left of X = (or z = 0)
are equal.

Symbolically, P (– a Z 0) = P(0 Z a).

Note : Here “Area” implies “Probability”

21. The probability that a normal variate Z will take a value less than or equal to a particular
value (say Z = K) will be denoted by (K) = P( Z K)

Note : The probability of success is calculated by evaluating the areas from the
standard normal curve, and the areas are obtained from normal table.

22. % Distribution of areas under Normal Curve / Standard Normal Curve

C-I
P(– 1 Z 0) = .3413,
P(0 Z 1) = .3413.
P(– 1 Z 1) = .6826.
68.26% of total area lies between Z = – 1 and Z = + 1 or X = and Z =

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C-II
P(– 2 Z 0) = .4772.
P(0 Z 2) = .4772.
P(– 2 Z 2) = .9544.
95.44% of total area lies between Z = – 2 and Z = + 2 or X = and X =

C-III
P(– 3 Z 0) = .4987.
P(0 Z 3) = .4987.
P(– 3 Z 3) = .9974.
99.74% of total area lies between Z = – 3 and Z = + 3 or X = and X =

23. Additive Property of Normal Distribution

If X & Y are independent normal variates with means & and standard deviation &
respectively, then Z = X + Y will also follow a Normal Distribution with mean =
and S.D.
symbolically,

24. In continuous probability Distribution, Probability is to be assigned to intervals and not to

individual values and accordingly the Probability that a Random Variable X will take any
specific value will be “0” i.e. P(X = C) = 0 when Distribution is continuous.

25. Concept of Cumulative Distribution Function (C. D. F.)

Cumulative Distribution Function (C. D. F.) is defined as the Probability that a Random
Variable X takes a value less than or equal to A specified value x and is denoted by F(X)
F(x) = P (X x)
F(X) represents Probability; 0 F(X) 1

26. F(X) = P(X C) will imply the area under the probability curve to the left of vertical line at C.

27. Uniform Distribution (Continuous)

A. A continuous Random Variable is said to follow uniform distribution if the probabilities

associated with intervals of same width are always equal at all parts and for any
range of values.

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B. P. D. F. of uniform distribution is given by : f(x) =

C. It is also known as “Rectangular Distribution”

D. Probability that X lies between any two specified values C and D within the range (“b
and a”) is given by :

28. Areas under Standard Normal Curve

C-I

C-II

C-III

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C-IV

C-V

C-VI

C-VII

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C-VIII

NOTE:
1) If the -ve and +ve values happen to be identical .i.e P in such a case the total
area will be = 2P

2) When in the problem the magnitude of the given area is greater than “.5” it implies
that area from - to that particular value of ‘z’ is provided, for evaluating the area
from 0 to that particular value of ‘z’ subtract .5 from it.

29. Methods of fitting Normal Distribution or a Normal Curve

There Are Two Methods Of Fitting Normal Distribution
1) Ordinate Method
2) Area Method

30. Condition under which “Binomial” and “Possion” approaches “Normal Distribution”

Case I
Normal Distribution as a limiting case of Binomial Distribution when
a) n, the number of trials is infinitely large I.e. n
b) Neither p(or q) is very small, i.e. p and q are fairly near equal

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c) In other words, if neither p nor q is very small but n is sufficiently large Binomial
Distribution approaches Normal Distribution.
d) In such a case, the Standard Normal Variate is given by

Case II
Poission Distribution tends to Normal Distribution with standardised Variable

Where m = Mean = = Variance

= S.d = as n increases indefinitely (i.e. as n )

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CLASSWORK SECTION

1. If the mean deviation of a normal variable is 16, what is its quartile deviation?
a) 10 b) 15 c) 13.5 d) 12.05

2. If the quartile deviation of a normal curve is 4.05, then its mean deviation is:
a) 5.26 b) 6.24 c) 4.24 d) 4.80

3. If the two quartiles of normal distribution are 14.6 and 25.4 respectively, what is
the standard deviation of the distribution?
a) 6 b) 8 c) 9 d) 10

4. What is the first quartile of x having the following probability density function?

a) 4 b) 5 c) 5.95 d) 6.75

5. If x and y are 2 independent normal variable with mean 10 and 12 and SD 3 and
4 respectively, then (x + y) is also a normal distribution with mean ____ and SD
_____.
a) 22, 7 b) 22, 25 c) 22, 5 d) 22, 49

Area under Normal / Standard Normal Curve

Find the area under the standard normal curve for the following values of standard
normal variate:

6. If the standard normal curve between z = 0 to z =1 is 0.3413, then the value of (1) is:
a) 0.5000 b) 0.8413 c) - 0.5000 d) 1

7. For certain normal variate x, the mean is 12 and S.D is 4 find P(X≥20):
[Area under the normal curve from z=0 to z=2 is 0.4772]
a) 0.5238 b) 0.0472 c) 0.7272 d) 0.0228

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8. If the weekly wages of 5000 workers in a factory follows normal distribution with
mean and SD as `700 and `50 respectively, what is the expected number of workers
with wages between ` 660 and ` 720?
a) 2050 b) 2200 c) 2218 d) 2300

9. 50 per cent of a certain product have weight 60kg or more whereas 10 per cent gave
weight 55 kg or less. On assumption of normality, what is the variance of weight?
Given (1.28) = 0.90.
a) 15.21 b) 9.00 c) 16.00 d) 22.68

Theoretical Aspects

10. For a normal distribution, P(X ≥ µ ) = ___________

a) 0 b) 1 c) 0.5 d) 0.6826

11. The probability distribution of z is called Standard Normal Distribution and is defined
by the probability density function:

a) b)

c) d)

12. If a random variable is normally distributed with mean and standard deviation
is called:
a) Normal Variate b) Standard Normal Variate
c) Chi-square Variate d) Uniform Variate

13. The curve of which of the following distribution is uni-modal and bell shaped with
the highest point over the mean
a) Poisson b) Binomial c) Normal d) All of the above

14. In Normal distribution as the distance from the _______ increases, the curve comes
closer and closer to the horizontal axis.
a) Standard Deviation b) Mean
c) Both a) and b) above d) Neither a) nor b) above

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15. For Standard Normal distribution, which of the following is correct?

a) Mean = 1; S.D. = 1 b) Mean = 1, S.D. = 0
c) Mean = 0, S.D. = 1 d) Mean = 0, S.D. = 0.

16. The mean deviation about median of a Standard Normal Variate is:
a) 0.675 b) 0.675 c) 0.80 d) 0.80

17. The interval ( ) covers

a) 96% area of a normal distribution.
b) 95% area of a normal distribution.
c) 99% area of a normal distribution.
d) All but 0.27% area of a normal distribution

18. The symbol (a) indicates the area of standard normal curve between
a) 0 to a b) a to c) - to a d) - to

19. An approximate relation between Quartile deviation (QD) and Standard Deviation
(SD) of normal distribution is:
a) 5 QD = 4 SD b) 4 QD = 5 SD
c) 2 QD = 35 SD d) 3 QD = 2 SD

20. The probability that x assumes a specified value in continues probability distribution
is _________.
a) 1 b) 0
c) -1 d) None

Theory Answer Key

10 c 11 c 12 b 13 c 14 b
15 c 16 d 17 d 18 a 19 d
20 b

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7 APPENDIX

Table I Area Under Standard Normal Curve

(Proportion of area under standard normal curve between the
ordinates at z = 0 and given values of z)
z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09
0.0 .0000 .0040 .0080 .0120 .0160 .0199 .0239 .0279 .0319 .0359
0.1 .0398 .0438 .0478 .0517 .0557 .0596 .0636 .0675 .0714 .0753
0.2 .0793 .0832 .0871 .0910 .0948 .0987 .1026 .1064 .1103 .1141
0.3 .1179 .1217 .1255 .1293 .1331 .1368 .1406 .1443 .1480 .1517
0.4 .1554 .1591 .1628 .1664 .1700 .1736 .1772 .1808 .1844 .1879
0.5 .1915 .1950 .1985 .2019 .2054 .2088 .2123 .2157 .2190 .2224
0.6 .2257 .2291 .2324 .2357 .2389 .2422 .2454 .2486 .2517 .2549
0.7 .2580 .2611 .2642 .2673 .2704 .2734 .2764 .2794 .2823 .2852
0.8 .2881 .2910 .2939 .2967 .2995 .3023 .3051 .3078 .3106 .3133
0.9 .3159 .3186 .3212 .3238 .3264 .3289 .3315 .3340 .3365 .3389
1.0 .3413 .3438 .3461 .3485 .3508 .3531 .3554 .3577 .3599 .3621
1.1 .3643 .3665 .3686 .3708 .3729 .3749 .3770 .3790 .3810 .3830
1.2 .3849 .3869 .3888 .3907 .3925 .3944 .3962 .3980 .3997 .4015
1.3 .4032 .4049 .4066 .4082 .4099 .4115 .4131 .4147 .4162 .4177
1.4 .4192 .4207 .4222 .4236 .4251 .4265 .4279 .4292 .4306 .4319
1.5 .4332 .4345 .4357 .4370 .4382 .4394 .4406 .4418 .4429 .4441
1.6 .4452 .4463 .4474 .4484 .4495 .4505 .4515 .4525 .4535 .4545
1.7 .4554 .4564 .4573 .4582 .4591 .4599 .4608 .4616 .4625 .4633
1.8 .4641 .4649 .4656 .4664 .4671 .4678 .4686 .4693 .4699 .4706
1.9 .4713 .4719 .4726 .4732 .4738 .4744 .4750 .4756 .4761 .4767
2.0 .4772 .4778 .4783 .4788 .4793 .4798 .4803 .4808 .4812 .4817
2.1 .4821 .4826 .4830 .4834 .4838 .4842 .4846 .4850 .4854 .4857
2.2 .4861 .4864 .4868 .4871 .4875 .4878 .4881 .4884 .4887 .4890
2.3 .4893 .4896 .4898 .4901 .4904 .4906 .4909 .4911 .4913 .4916
2.4 .4918 .4920 .4922 .4925 .4927 .4929 .4931 .4932 .4934 .4936
2.5 .4938 .4940 .4941 .4943 .4945 .4946 .4948 .4949 ..4951 .4952
2.6 .4953 .4955 .4956 .4957 .4959 .4960 .4961 .4962 .4963 .4964
2.7 .4965 .4966 .4967 .4968 .4969 .4970 .4971 .4972 .4973 .4974

149
 CA FOUNDATION STATISTICS

2.8 .4974 .4975 .4976 .4977 .4977 .4973 .4979 .4979 .4980 .4981
2.9 .4981 .4982 .4982 .4983 .4984 .4984 .4985 .4985 .4986 .4986
3.0 .4987 .4987 .4987 .4988 .4988 .4989 .4989 .4989 .4990 .4990
3.1 .4990 .4991 .4991 .4991 .4992 .4992 .4992 .4992 .4993 .4993
3.2 .4993 .4993 .4994 .4994 .4994 .4994 .4994 .4995 .4995 .4995
3.3 .4995 .4995 .4995 .4996 .4996 .4996 .4996 .4996 .4996 .4997
3.4 .4997 .4997 .4997 .4997 .4997 .4997 .4997 .4997 .4997 .4998

150
 CA FOUNDATION STATISTICS

Table II Values of e–m

m e–m m e–m m e–m
0.0 1.0000 1.5 0.2231 3.0 0.0498
0.1 0.9048 1.6 .2019 3.2 .0408
0.2 .8187 1.7 .1827 3.4 .0334
0.3 .7408 1.8 .1653 3.6 .0273
0.4 .6703 1.9 .4497 3.8 .0224
0.5 .6065 2.0 .1353 4.0 .0183
0.6 .5488 2.1 .1225 4.2 .0150
0.7 .4966 2.2 .1108 4.4 .0123
0.8 .4493 2.3 .1003 4.6 .0100
0.9 .4066 2.4 .0907 4.8 .00823
1.0 .3679 2.5 .0821 5.0 .00674
1.1 .3329 2.6 .0743 5.5 .00409
1.2 .3012 2.7 .0672 6.0 .00248
1.3 .2725 2.8 .0608 6.5 .00150
1.4 .2466 2.9 .0550 7.0 .00091

151
 CA FOUNDATION STATISTICS

Table III - LOGARITHM

0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
10 0000 0043 0086 0128 0170 5 9 13 17 21 26 30 34 38
0212 0253 0294 0334 0374 4 8 12 16 20 24 32 36 36
11 0414 0453 0492 0531 0569 4 8 12 16 20 23 27 31 35
0607 0645 0682 0719 0755 4 7 11 15 18 22 26 29 33
12 0792 0828 0964 0899 0934 3 7 11 14 18 21 25 28 32
0969 1004 1038 1072 1106 3 7 10 14 17 20 24 27 31
13 1139 1173 1208 1239 1271 3 6 10 13 16 19 23 26 29
1303 1335 1367 1399 1430 3 7 10 13 16 19 22 25 29
14 1461 1492 1523 3 6 9 12 15 19 22 25 28
1553 1584 1614 1644 1673 1703 1732 3 6 9 12 14 17 20 23 26
15 1761 1790 1818 3 6 9 11 14 17 20 23 26
1847 1875 1903 1931 1959 1987 2014 3 6 8 11 14 17 19 22 25
16 2041 2068 2095 2122 2148 3 6 8 11 14 16 19 22 24
2175 2201 2227 2253 2279 3 5 8 10 13 16 18 21 23
17 2304 2330 2355 2380 2405 3 5 8 10 13 15 18 20 23
2430 2455 2480 2504 2529 3 5 8 10 12 15 17 20 22
18 2553 2577 2601 2625 2648 2 5 7 9 12 14 17 19 21
2672 2695 2718 2742 2765 2 4 7 9 11 14 16 19 21
19 2788 2810 2833 2856 2878 2 4 7 9 11 13 16 18 20
2900 2923 2945 2967 2989 2 4 6 8 11 13 15 17 19
20 3010 3023 3054 3075 3096 3116 3139 3160 3181 3201 2 4 6 8 11 13 15 17 19
21 3222 3243 3263 3284 3304 3324 3345 3365 3385 3404 2 4 6 8 10 12 14 16 18
22 3424 3444 3464 3483 3502 3522 3541 3560 3579 3598 2 4 6 8 10 12 14 15 17
23 3617 3636 3655 3674 3692 3909 3927 3747 3766 3784 2 4 6 7 9 11 13 15 17
24 3802 3820 3838 3856 3874 3892 3909 3927 3945 3962 2 4 5 7 9 11 12 14 16
25 3979 3997 4014 4031 4048 4065 4082 4099 4116 4133 2 3 5 7 9 10 11 13 15
26 4150 4166 4183 4200 4216 4232 4249 4265 4281 4298 2 3 5 7 8 10 11 13 15
27 4314 4330 4346 4362 4378 4393 4409 4425 4440 4456 2 3 5 6 8 9 11 12 14
28 4472 4487 4502 4518 4533 4548 4564 4579 4594 4609 2 3 5 6 8 9 10 12 14
29 4624 4639 4654 4669 4683 4698 4713 4728 4742 4757 1 3 4 6 7 9 10 11 13
30 4771 4786 4800 4814 4829 4843 4857 4871 4886 4900 1 3 4 6 7 9 10 11 13
31 4914 4928 4942 4955 4969 4983 4997 5011 5024 5038 1 3 4 6 7 8 10 11 12
32 5051 5065 5079 5092 5105 5119 5132 5145 5159 5172 1 3 4 5 7 8 9 11 12
33 5185 5198 5211 5224 5237 5250 5263 5276 5289 5302 1 3 4 5 6 8 9 10 12
34 5315 5328 5340 5353 5366 5378 5391 5403 5416 5428 1 3 4 5 6 8 9 10 11
35 5441 5453 5465 5478 5490 5502 5514 5527 5539 5551 1 2 4 5 6 7 9 10 11

152
 CA FOUNDATION STATISTICS

36 5563 5575 5587 5599 5611 5623 5635 5647 5658 5670 1 2 4 5 6 7 8 10 11
37 5682 5694 5705 5717 5729 5740 5752 5763 5775 5786 1 2 3 5 6 7 8 9 10
38 5798 5809 5821 5832 5843 5855 5866 5877 5888 5899 1 2 3 5 6 7 8 9 10
39 5911 5922 5933 5944 5955 5966 5977 5988 5999 6010 1 2 3 4 5 7 8 9 10
40 6021 631 6042 6053 6064 6075 6085 6096 6107 6117 1 2 3 4 5 6 8 9 10
41 6128 6138 6149 6160 6170 6180 6191 6201 6212 6222 1 2 3 4 5 6 7 8 9
42 6232 6243 6253 6263 6274 6284 6294 6304 6314 6235 1 2 3 4 5 6 7 8 9
43 6335 6345 6355 6365 6575 6385 6395 6405 6415 6425 1 2 3 4 5 6 7 8 9
44 6435 6444 6454 6464 6474 6484 6493 6503 6513 6522 1 2 3 4 5 6 7 8 9
45 6532 6542 6551 6561 6571 6580 6590 6599 6609 6618 1 2 3 4 5 6 7 8 9
46 6628 6637 6646 6656 6665 6675 6684 6693 6702 6712 1 2 3 4 5 6 7 7 8
47 6721 6730 6739 6749 6758 6767 6776 6785 6794 6803 1 2 3 4 5 5 6 7 8
48 6812 6821 6830 6839 6848 6857 6866 6875 6884 6893 1 2 3 4 4 5 6 7 8
49 6902 6911 6920 6928 6037 6946 6955 6964 6972 6981 1 2 3 4 4 5 6 7 8

Example:
Log 2 = 0.3010: Log 20 = 1.3010: Log 200 = 2.3010: Log 2,000 = 3.3010 etc.
Log 2 = 0.3010 - 1 – (–) 0.699
Log 0.02 = 0.3010 - 2 – (–) 1.699

153
 CA FOUNDATION STATISTICS

0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
50 6990 6998 7007 7016 7024 7033 7042 7050 7059 7067 1 2 3 3 4 5 6 7 8
51 7076 7084 7093 7101 7110 7118 7126 7135 7143 7152 1 2 3 3 4 5 6 7 8
52 7160 7166 7177 7185 7193 7202 7210 7218 7226 7235 1 2 2 3 4 5 6 7 7
53 7243 7251 7259 7267 7275 7284 7292 7300 7306 7314 1 2 2 3 4 5 6 6 7
54 7324 7332 7340 7348 7358 7364 7372 7380 7388 7396 1 2 2 3 4 5 6 6 7
55 7404 7412 7419 7427 7435 7443 7451 7459 7466 7474 1 2 2 3 4 5 5 6 7
56 7452 7490 7497 7505 7513 7520 7528 7536 7543 7551 1 2 2 3 4 5 5 6 7
57 7559 7566 7574 7582 7589 7597 7604 7612 7619 7627 1 2 2 3 4 5 5 6 7
58 7634 7642 7649 7657 7664 7672 7679 7686 7694 7701 1 1 2 3 4 4 5 6 7
59 7709 7716 7723 7731 7738 7745 7752 7760 7767 7774 1 1 2 3 4 4 5 6 7
60 7782 7789 7796 7803 7810 7818 7825 7832 7839 7848 1 1 2 3 4 4 5 6 6
61 7853 7860 7868 7875 7882 7889 7896 7903 7910 7917 1 1 2 3 4 4 5 6 6
62 7924 7931 7938 7945 7952 7958 7966 7973 7980 7987 1 1 2 3 3 4 5 6 6
63 7993 8000 8007 8014 8021 8028 8035 8041 8048 8055 1 1 2 3 3 4 5 5 6
64 8062 8069 8075 8082 8089 8096 8102 8109 8116 8122 1 1 2 3 3 4 5 5 6
65 8129 8136 8142 8149 8158 8162 8169 8176 8182 8189 1 1 2 3 3 4 5 5 6
66 8195 8202 8209 8215 8222 8228 8235 8241 8248 8254 1 1 2 3 3 4 5 5 6
67 8261 8267 8274 8280 8287 8293 8299 8306 8312 8319 1 1 2 3 3 4 5 5 6
68 8325 8331 8338 8344 8351 8357 8363 8370 8376 8382 1 1 2 3 3 4 4 5 6
69 8388 8395 8401 8407 8414 8420 8428 8432 8439 8445 1 1 2 2 3 4 4 5 6
70 8451 8457 8463 8470 8476 8482 8488 8494 8500 8506 1 1 2 2 3 4 4 5 6
71 8513 8519 8525 8531 8537 8543 8549 8555 8561 8567 1 1 2 2 3 4 4 5 5
72 8573 8579 8585 8591 8597 8603 8609 8615 8621 8627 1 1 2 2 3 4 4 5 5
73 8633 8639 8645 8651 8657 8663 8669 8673 8681 8686 1 1 2 2 3 4 4 5 5
74 8692 8698 8704 8710 8716 8722 8727 8733 8738 8745 1 1 2 2 3 4 4 5 5
75 8751 8756 8762 8768 8774 8779 8785 8791 8797 8802 1 1 2 2 3 3 4 5 5
76 8808 8814 8820 8825 8831 8837 8842 8848 8854 8859 1 1 2 2 3 3 4 5 5
77 8865 8871 8876 8882 8887 8893 8899 8904 8910 8915 1 1 2 2 3 3 4 4 5
78 8921 8927 8932 8938 8943 8949 8954 8960 8965 8971 1 1 2 2 3 3 4 4 5
79 8976 8982 8987 8993 8998 9004 9009 9015 9020 9025 1 1 2 2 3 3 4 4 5
80 9031 9036 9042 9047 9053 9058 9063 9069 9074 9079 1 1 2 2 2 3 4 4 5
81 9085 9090 9096 9101 9106 9112 9117 9122 9128 9133 1 1 2 2 2 3 4 4 5
82 9138 9143 9149 9154 9159 9165 9170 9175 9180 9186 1 1 2 2 2 3 4 4 5
83 9191 9196 9201 9206 9212 9217 9222 9227 9232 9238 1 1 2 2 2 3 4 4 5
84 9243 9248 9253 9258 9263 9269 9274 9279 9284 9289 1 1 2 2 2 3 4 4 5
85 9294 9299 9304 9309 9315 9320 9325 9330 9335 9340 1 1 2 2 3 3 4 4 5
86 9345 9350 9355 9360 9365 9370 9375 9380 9385 9390 1 1 2 2 3 3 4 4 5
87 9395 9400 9405 9410 9415 9420 9425 9430 9435 9440 0 1 1 2 2 3 3 4 4

154
 CA FOUNDATION STATISTICS

88 9445 9450 9450 9455 9460 9469 9474 9479 9484 9489 0 1 1 2 2 3 3 4 4
89 9494 9499 9504 9509 9513 9518 9523 9528 9533 9538 0 1 1 2 2 3 3 4 4
90 9542 9547 9552 9557 9562 9566 9571 9576 9581 9586 0 1 1 2 2 3 3 4 4
91 9590 9595 9600 9605 9609 9614 9619 9624 9628 9633 0 1 1 2 2 3 3 4 4
92 9638 9643 9647 9652 9657 9661 9666 9671 9675 9680 0 1 1 2 2 3 3 4 4
93 9685 9689 9694 9699 9703 9708 9713 9717 9722 9727 0 1 1 2 2 3 3 4 4
94 9731 9736 9741 9745 9750 9754 9759 9763 9768 9773 0 1 1 2 2 3 3 4 4
95 9777 9782 9786 9791 9795 9800 9805 9809 9814 9818 0 1 1 2 2 3 3 4 4
96 9823 9827 9832 9836 9841 9845 9850 9854 9859 9863 0 1 1 2 2 3 3 4 4
97 9868 9872 9877 9881 9886 9890 9894 9899 9903 9908 0 1 1 2 2 3 3 4 4
98 9912 9917 9921 9926 9930 9934 9939 9943 9945 9952 0 1 1 2 2 3 3 4 4
99 9958 9961 9965 9969 9974 9978 9983 9987 9991 9996 0 1 1 2 2 3 3 3 4

155
 CA FOUNDATION STATISTICS

Table IV - ANTILOGARITHM
0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
100 1000 1002 1005 1007 1009 1012 1014 1016 1018 1021 0 0 1 1 1 1 2 2 2
101 1023 1026 1028 1030 1033 1035 1038 1040 1042 1045 0 0 1 1 1 1 2 2 2
102 1047 1050 1052 1054 1057 1059 1062 1064 1067 1069 0 0 1 1 1 1 2 2 2
103 1072 1074 1076 1079 1081 1084 1086 1089 1091 1094 0 0 1 1 1 1 2 2 2
104 1096 1099 1102 1104 1107 1109 1112 1114 1117 1119 0 1 1 1 1 2 2 2 2
105 1122 1125 1127 1130 1132 1135 1138 1140 1143 1146 0 1 1 1 1 2 2 2 2
106 1148 1151 1153 1156 1159 1161 1164 1167 1169 1172 0 1 1 1 1 2 2 2 2
107 1175 1178 1180 1183 1186 1189 1191 1194 1197 1199 0 1 1 1 1 2 2 2 2
108 1202 1205 1208 1211 1213 1216 1219 1222 1225 1227 0 1 1 1 1 2 2 2 3
109 1230 1233 1236 1239 1242 1245 1247 1250 1253 1256 0 1 1 1 1 2 2 2 3
110 1259 1262 1265 1268 1271 1274 1276 1279 1282 1285 0 1 1 1 1 2 2 2 3
111 1288 1291 1294 1297 1300 1303 1306 1309 1312 1315 0 1 1 1 2 2 2 2 3
112 1381 1321 1324 1327 1330 1334 1337 1340 1342 1348 0 1 1 1 2 2 2 2 3
113 1349 1352 1355 1358 1361 1365 1368 1371 1374 1377 0 1 1 1 2 2 2 3 3
114 1380 1384 1387 1390 1393 1396 1400 1403 1406 1409 0 1 1 1 2 2 2 3 3
115 1413 1416 1419 1422 1426 1429 1432 1435 1439 1442 0 1 1 1 2 2 2 3 3
116 1445 1449 1452 1455 1459 1462 1466 1469 1472 1476 0 1 1 1 2 2 2 3 3
117 1479 1483 1486 1489 1493 1496 1500 1503 1507 1510 0 1 1 1 2 2 2 3 3
118 1514 1517 1521 1524 1528 1531 1535 1538 1542 1545 0 1 1 1 2 2 2 3 3
119 1549 1552 1556 1560 1563 1567 1570 1574 1578 1581 0 1 1 1 2 2 3 3 3
120 1585 1589 1592 1596 1600 1603 1607 1611 1614 1618 0 1 1 1 2 2 3 3 3
121 1622 1626 1629 1633 1637 1641 1644 1648 1652 1656 0 1 1 2 2 2 3 3 3
122 1660 1663 1667 1671 1675 1679 1683 1687 1690 1694 0 1 1 2 2 2 3 3 3
123 1698 1702 1706 1710 1714 1718 1722 1726 1730 1734 0 1 1 2 2 2 3 3 4
124 1738 1742 1746 1750 1754 1758 1762 1768 1770 1774 0 1 1 2 2 2 3 3 4
125 1778 1782 1786 1791 1795 1799 1803 1807 1811 1816 0 1 1 2 2 2 3 3 4
126 1820 1824 1828 1832 1837 1841 1845 1849 1897 1858 0 1 1 2 2 3 3 3 4
127 1862 1866 1871 1875 1879 1884 1888 1892 1941 1901 0 1 1 2 2 3 3 3 4
128 1905 1910 1914 1919 1923 1928 1932 1936 1941 1945 0 1 1 2 2 3 3 4 4
129 1950 1954 1959 1963 1968 1972 1977 1982 1986 1991 0 1 1 2 2 3 3 4 4
130 1995 2000 2004 2009 2014 2018 2023 2028 2032 2037 0 1 1 2 2 3 3 4 4
131 2042 2046 2051 2056 2061 2065 2070 2075 2080 2084 0 1 1 2 2 3 3 4 4
132 2089 2094 2099 2104 2109 2113 2118 2123 2128 2133 0 1 1 2 2 3 3 4 4
133 2138 2143 2148 2153 2158 2163 2168 2173 2178 2183 0 1 1 2 2 3 3 4 4
134 2188 2193 2198 2203 2206 2213 2218 2223 2228 2234 1 1 2 2 3 3 4 4 5
135 2239 2244 2249 2254 2259 2265 2270 2275 2280 2256 1 1 2 2 3 3 4 4 5

156
 CA FOUNDATION STATISTICS

136 2291 2286 2301 2307 2312 2317 2323 2328 2333 2339 1 1 2 2 3 3 4 4 5
137 2344 2350 2355 2359 2366 2271 2377 2382 2388 2393 1 1 2 2 3 3 4 4 5
138 2399 2404 2410 2415 2421 2427 2432 2438 2443 2449 1 1 2 2 3 3 4 4 5
139 2455 2460 2466 2472 2477 2483 2489 2495 2500 2506 1 1 2 2 3 3 4 5 5
140 2512 2518 2523 2529 2535 2541 2547 2553 2559 2564 1 1 2 2 3 4 4 5 5
141 2570 2576 2582 2588 2594 2600 2606 2612 2618 2624 1 1 2 2 3 4 4 5 5
142 2630 2636 2642 2649 2655 2661 2667 2673 2679 2624 1 1 2 2 3 4 4 5 6
143 2692 2698 2704 2710 2716 2723 2729 2735 2742 2748 1 1 2 3 3 4 4 5 6
144 2754 2761 2767 2773 2780 2786 2793 2799 2805 2812 1 1 2 3 3 4 4 5 6
145 2818 2825 2831 2838 2844 2851 2858 2864 2871 2877 1 1 2 3 3 4 5 5 6
146 2884 2891 2897 2904 2911 2917 2924 2931 2938 2944 1 1 2 3 3 4 5 5 6
147 2951 2958 2965 2972 2979 2985 2992 2999 3006 3013 1 1 2 3 3 4 5 5 6
148 3020 3027 3034 3041 3048 3055 3062 3069 3076 3083 1 1 2 3 4 4 5 6 6
149 3090 3097 3105 3112 3118 3126 3133 3141 3148 3155 1 1 2 3 4 4 5 6 6

157
 CA FOUNDATION STATISTICS

0 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
150 3162 3170 3177 3184 3192 3199 3206 3214 3221 3228 1 1 2 3 4 4 5 6 7
151 3236 3243 3251 3258 3268 3273 3281 3289 3296 3304 1 2 2 3 4 5 5 6 7
152 3311 3319 3327 3334 3342 3350 3357 3365 3373 3381 1 2 2 3 4 5 5 6 7
153 3388 3396 3404 3412 3420 3428 3436 3442 3451 3459 1 2 2 3 4 5 6 6 7
154 3467 3475 3483 3491 3499 3508 3516 3524 3532 2540 1 2 2 3 4 5 6 6 7
155 3548 3556 3565 3573 3581 3589 3597 3606 3614 3622 1 2 2 3 4 5 6 6 7
156 3631 3639 3648 3656 3664 3673 3681 3690 3698 3707 1 2 3 3 4 5 6 7 8
157 3715 3724 3733 3741 3750 3758 3767 3776 3784 3793 1 2 3 3 4 5 6 7 8
158 3802 3811 3819 3828 3837 3846 3855 3864 3873 3882 1 2 3 4 4 5 6 7 8
159 3890 3899 3908 3917 3926 3936 3945 3954 3963 3972 1 2 3 4 4 5 6 7 8
160 3981 3990 3999 4009 4018 4027 4036 4046 4055 4065 1 2 3 4 5 6 6 7 8
161 4074 4083 4093 4102 4111 4121 4130 4140 4150 4159 1 2 3 4 5 6 7 8 9
162 4169 4178 4188 4198 4207 4217 4227 4236 4246 4256 1 2 3 4 5 6 7 8 9
163 4266 4276 4285 4295 4305 4315 4325 4335 4345 4355 1 2 3 4 5 6 7 8 9
164 4365 4375 4385 4395 4406 4416 4426 4436 4446 4457 1 2 3 4 5 6 7 8 9
165 4467 4477 4487 4498 4508 4519 4529 4539 4550 4560 1 2 3 4 5 6 7 8 9
166 4571 4581 4592 4603 4613 4624 4634 4645 4656 4667 1 2 3 4 5 6 7 9 10
167 4677 4688 4699 4710 4721 4732 4742 4753 4764 4775 1 2 3 4 5 7 8 9 10
168 4788 4797 4808 4819 4831 4842 4853 4864 4875 4887 1 2 3 4 6 7 8 9 10
169 4898 4909 4920 4932 4943 4955 4986 4977 4989 5000 1 2 3 5 6 7 8 9 10
170 5012 5023 5035 5047 5058 5070 5082 5093 5105 5117 1 2 4 5 6 7 8 9 11
171 5129 5140 5152 5164 5176 5188 5200 5212 5224 5236 1 2 4 5 6 7 8 10 11
172 5248 5260 5272 5284 5297 5309 5321 5333 5346 5358 1 2 4 5 6 7 9 10 11
173 5370 5383 5395 5408 5420 5433 5445 5458 5470 5483 1 3 4 5 6 8 9 10 11
174 5495 5508 5521 5534 5546 5559 5572 5585 5598 5610 1 3 4 5 6 8 9 10 12
175 5632 5636 5649 5662 5675 5689 5702 5715 5728 5741 1 3 4 5 7 8 9 10 12
176 5754 5768 5781 5794 5808 5821 5834 5848 5861 5875 1 3 4 5 7 8 9 11 12
177 5858 5902 5916 5929 5943 5957 5970 5984 5998 6012 1 3 4 5 7 8 10 11 12
178 6028 6039 6053 6067 6081 6095 6109 6124 6138 6152 1 3 4 6 7 8 10 11 13
179 6166 6180 6194 6209 6223 6237 6252 6266 6281 6295 1 3 4 6 7 9 10 11 13
180 6310 6324 6339 6353 6368 6383 6397 6412 6427 6442 1 3 4 6 7 9 10 12 13
181 6457 6471 6486 6501 6516 6531 6546 6561 6577 6592 2 3 5 6 8 9 11 12 14
182 6607 6622 6637 6653 6668 6683 6699 6714 6730 6745 2 3 5 6 8 9 11 12 14
183 6761 6776 6792 6808 6823 6839 6855 6871 6887 6902 2 3 5 6 8 9 11 13 14
184 6918 6934 6950 6965 6982 6598 7015 7031 7047 7063 2 3 5 6 8 10 11 13 15
185 7079 7096 7112 7129 7145 7161 7178 7194 7211 7228 2 3 5 7 8 10 12 13 15
186 7244 7261 7278 7295 7311 7328 7345 7362 7379 7396 2 3 5 7 8 10 12 13 15
187 7413 7430 7447 7464 7482 7499 7516 7534 7551 7568 2 3 5 7 9 10 12 14 16

158
 CA FOUNDATION STATISTICS

188 7586 7603 7621 7638 7656 7674 7691 7709 7727 7745 2 4 5 7 9 11 12 14 16
189 7762 7780 7796 7816 7834 7852 7870 7889 7907 7925 2 4 5 7 9 11 13 14 16
190 7943 7962 7980 7998 8017 8035 8054 8072 8091 8110 2 4 6 7 9 11 13 15 17
191 8128 8147 8166 8185 8204 8222 8241 8260 8279 8299 2 4 6 8 9 11 13 15 17
192 8318 8337 8356 8375 8395 8414 8433 8453 8472 8492 2 4 6 8 10 12 14 15 17
193 8511 8531 8551 8570 8590 8610 8630 8650 8670 8690 2 4 6 8 10 12 14 16 18
194 8710 8730 8750 8770 8790 8810 8831 8851 8872 8892 2 4 6 8 10 12 14 16 18
195 8913 8933 8954 8974 8995 9016 9036 9057 9078 9099 2 4 6 8 10 12 15 17 19
196 9120 9141 9162 9183 9204 9226 9247 9268 9290 9311 2 4 6 8 11 13 15 17 19
197 9333 9354 9376 9397 9419 9441 9462 9484 9506 9528 2 4 7 9 11 13 15 17 20
198 9550 9572 9594 9616 9638 9661 9683 9705 9727 9750 2 4 7 9 11 13 16 18 20
199 9772 9795 9817 9840 9836 9886 9908 9931 9954 9977 2 5 7 9 11 14 16 18 20

Example:
If Log x = 0.301. then x = Antilog 0.301 = 2
If Log x = 1.301. then x = (Antilog 0.301) × 10 = 20
If Log x = 2.301. then x = (Antilog 0.301) × 100 = 200
If Log x = (–) 0.699, then we can write Log x = (– 1 + 0.301) : Thus x = Antilog (0.301) / 10 = 0.2
If Log x = (–) 1.699, then we can write Log x = (– 2 + 0.301) : Thus x = Antilog (0.301) / 100 = 0.02

159