RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
Quantitative Methods
Important Questions
(January 2023)
1. Which of the following statements as regards to the value of the correlation coefficient is/are correct?
(i) The coefficient of determination is the square of the correlation coefficient
(ii) The value of the coefficient of determination must always be in the range 0 to +1.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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2. Which of the following statement is/are correct:
(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) In Paasches price index, the denominator has to be recalculated every year to take account of the most
recent quantities consumed
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) 1s correct
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3. Which of the following statements is/are correct in regards the sampling distribution of the mean?
(i) The sampling distribution of the mean is a normal distribution
(ii) The mean of the sampling distribution of the mean is the same as the mean of the population
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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4. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) It is not suitable for investigators who are interested in issues related to subgroups of a population.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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5. Which of the following construction of null and alterative hypothesis is/are correct? Please note that
population mean in both cases is 36.
(i) The sample data provide evidence that the population mean is less than 36. Therefore,
Ho: µ < 36
H1: µ ≤ 36
(ii) The sample data provide evidence that the population mean is greater than 36. Therefore,
Ho: µ ≤ 36
H1: µ > 36
(a) Only case (i) is correct (c) Only case (i) is correct
(b) Both cases are not correct (d) Both cases are correct
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6. Which of the following statements is/are correct about sampling distribution?
(i) The mean of a sampling distribution is the same as the mean of the population
M. Bilal Kamran Page 1
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
(ii) Sampling distribution is symmetrical about its mean
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) 1s correct
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7. Which of the following statements as regards to Normal distribution is/are correct?
(i) Both tails of the distribution approach and meet the horizontal axis at a finite but high value
(ii) Lower standard deviation leads to a flatter curve
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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8. Which of the following statements as regards to the value of the correlation coefficient is/are correct?
(i) It is always greater than 0
(ii) It is always lies in the range -1 to +1
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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9. Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is a typical
(ii) It might indicate a relationship where there is none
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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10. Which of the following statements as regards to variance is/are correct?
(i) It can never be smaller than the standard deviation
(ii) It can never be zero.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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11. Which of the following statements is/are correct?
(i) Range is a measure of dispersion.
(ii) Percentile is a measure of dispersion.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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12. Consider the following statements about Mean. Which of the above statements is/are correct?
(i) It must be one of the values found in the data
(ii) In case of ungroup data, there may be more than one mean.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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13. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Where every member of the population has an equal chance of being selected as a member of the sample
(a) Both statements are correct (b) Both statements are not correct
M. Bilal Kamran Page 2
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
(c) Only statement (i) is correct (d) Only statement (ii) is correct
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14. Which of the following statements as regards to variance is/are correct?
(i) It is always smaller than the standard deviation
(ii) It can never be negative.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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15. Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is a typical
(ii) we can draw it for two or more variables
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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16. Which of the following statements about scatter diagram is/are correct?
(i) It is important to establish which variable is independent before plotting
(ii) It might indicate a relationship where there is none
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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17. Which of the following statements about Laspayer’s Price Index is/are correct?
(i) It tends to overstate inflation.
(ii) The denominator does not change from year to year.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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18. Which of the following statements about Sampling distribution of the means is/are correct?
(i) The standard deviation of the sampling distribution is called standard error.
(ii) The standard deviation of the sampling distribution of the mean is the same as the standard deviation of
the population.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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19. Which of the following statements about scatter diagram is/are correct?
(i) Shows visual relation between variables.
(ii) It might indicate a relationship where there is none.
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
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20. Which of the following statement/s true about mean:
(i) Most repeated value
(ii) The best single figure to describe data
(a) Both statements are correct (c) Only statement (i) is correct
(b) Both statements are not correct (d) Only statement (ii) is correct
M. Bilal Kamran Page 3
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
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21. Which of the following statements is/are correct?
(i) Semi-inter Quartile Range is a measure of dispersion.
(ii) Percentile is a measure of dispersion.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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22. Which of the following statements is/are correct regarding Class boundary?
(i) There is no gap between the classes.
(ii) Midpoint of the upper-class limit of one class and the lower-class limit of the subsequent class
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) 1s correct
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23. Which of the following statement is correct about Population Parameter?
(i) All the items present in the data.
(ii) 50 people selected through random sampling.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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24. Normal Distribution depends on:
(i) Mean
(ii) Standard Deviation
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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25. Which of the following statements is/are correct?
(i) There is strong relationship between two variables, the points on the scatter diagram would be
concentrated around a curve.
(ii) Linear regression analysis can be used to estimate fixed cost and variable cost per unit from historical
total cost and production data.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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26. Which of the following statements is/are correct?
M. Bilal Kamran Page 4
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
(i) A grouped frequency distribution of discrete data has gaps between the classes.
(ii) Discrete data can be converted into continuous data.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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27. Which of the following statements about scatter diagram is/are correct?
(i) It is least important to establish which variable is independent
(ii) It might indicate a relationship where there is none.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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28. Which of the following statements about scatter diagram is/are correct?
(i) It leads to correct conclusion even if there are only few data points.
(ii) It might indicate a relationship where there is none.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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29. Which of the following statements about scatter diagram is/are correct?
(i) It is least important to establish which variable is independent
(ii) It leads to correct conclusion even if there are only few data points.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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30. Which of the following construction of null and alternative hypothesis is/are correct? Please note that
population mean in both cases is 36.
(i) The sample data provide evidence that the population mean is less than 36. Therefore,
Ho: µ ≠ 36
H1: µ = 36
(ii) The sample data provide evidence that the population mean is less than 36. Therefore,
Ho: µ = 36
H1: µ < 36
(a) Only case (i) is correct
(b) Both cases are not correct
(c) Only case (ii) is correct
(d) Both cases are correct
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M. Bilal Kamran Page 5
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
31. Which of the following statements as regards to Normal distribution is/are correct?
(i) Both tails of the distribution approach and meet the horizontal axis at a finite but high value
(ii) Higher standard deviation leads to a flatter curve
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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32. Which of the following statements about Laspayer’s Price Index is/are correct?
(i) It tends to overstate inflation.
(ii) The denominator does change from year to year.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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33. Which of the following statements is/are correct in regards the sampling distribution of the mean?
(i) The sampling distribution of the mean is not a normal distribution
(ii) The standard deviation of the sampling distribution of the mean is the same as the standard deviation of
the population.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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34. Which of the following statements is/are true about population?
(i) It is desired to consider all the population in an observation.
(ii) In an observation we consider all of the population.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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35. Which of the following statements is/are true about discrete data?
(i) There is no gap between them.
(ii) Mid-point is calculated by dividing the upper and lower limit in each class
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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36. Which of the following statements is/are true about discrete data?
(i) There is gap between them.
(ii) Mid-point is calculated by dividing the upper and lower limit in each class
M. Bilal Kamran Page 6
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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37. Which of the following statements is/are correct?
(i) A grouped frequency distribution of discrete data has gaps between the classes.
(ii) In class boundaries, there is no gap between the classes.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) 1s correct
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38. Which of the following statement is/are correct:
(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) In Laspayer price index, the denominator has to be recalculated every year to take account of the most
recent quantities consumed
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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39. Which of the following statement is/are correct:
(i) In Laspeyre price index, the denominator does change from year to year.
(ii) In Paasches price index, the denominator has to be recalculated every year to take account of the most
recent quantities consumed
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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40. Which of the following statement is/are correct where Regression 1s used?
(i) It is very important in accounting and other business operations
(ii) It is widely used in economics & business
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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41. Which of the following statement is/are correct where Regression is used?
(i) It tells fixed cost but not variable cost per unit.
(ii) It shows the extent of relationship between two variables
(a) Both statements are correct
(b) Both statements are not correct
M. Bilal Kamran Page 7
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
42. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Unequal chance of selection
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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43. Which of the following about cluster sampling is/are correct?
(i) It is type of multistage sampling.
(ii) It is useful when all data of individuals of population are not given.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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44. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Where every member of the population has an unequal chance of being selected as a member of the
sample
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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45. Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is a typical
(ii) It shows the relationship between two variables.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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46. Which of the following statement 1s/are correct:
(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) Laspeyre price index is used more than the Paasche price index in practice.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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M. Bilal Kamran Page 8
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
47. Which of the following statements is/are correct?
(i) Quartile is a measure of dispersion.
(ii) Percentile is a measure of dispersion.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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48. Which of the following statements is/are correct?
(i) Range is a measure of dispersion.
(ii) Semi-inter Quartile Range is a measure of dispersion.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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49. Which of the following statement is/are correct about correlation coefficient?
(i) It is always from 0 to +1
(ii) It is always from 0 to -1
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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50. Which of the following statements is/are correct?
(i) Range is a measure of dispersion.
(ii) Inter Quartile Range is a measure of dispersion.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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51. Which of the following is true about random sample:
(i) Where every member of the population has an unequal chance of being selected as a member of the
sample
(ii) It can be cumbersome when sampling from an unusually large target population.
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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52. Which of the following is true about regression lines:
(i) It is used to obtain line of best fit between two variables.
(ii) We can calculate fixed cost from it but not variable cost.
M. Bilal Kamran Page 9
RISE School of Accountancy (Islamabad & Rawalpindi) Quantitative Methods (PRC-02) MCQ’s
(a) Both statements are correct
(b) Both statements are not correct
(c) Only statement (i) is correct
(d) Only statement (ii) is correct
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M. Bilal Kamran Page 10
