DATE:7-7-25 CODE:FOU-3183 MARKS:70

BATCH:F186 (SEPT. 2025)

CA FOUNDATION
QUANTITATIVE APTITUDE
SYLLABUS:STATS - CORRELATION AND REGRESSION, PROBABILITY
DISTRIBUTIONS
1. For a p x q classification of bivariate data, the maximum number of conditional distributions is
(a) p (b) p + q (c) pq (d) p or q
2. If the plotted points in a scatter diagram are evenly distributed, then the correlation is
(a) Zero (b) Negative (c) Positive (d) (a) or (b).
3. Product moment correlation coefficient is considered for
(a) Finding the nature of correlation (b) Finding the amount of correlation
(c) Both (a) and (b) (d) Either (a) and (b).
4. What are the limits of the correlation coefficient?
(a) No limit (b) –1 and 1, excluding the limits
(c) 0 and 1, including the limits (d) –1 and 1, including the limits
5. When we are not concerned with the magnitude of the two variables under discussion, we consider
(a) Rank correlation coefficient (b) Product moment correlation coefficient
(c) Coefficient of concurrent deviation (d) (a) or (b) but not (c).
6. The difference between the observed value and the estimated value in regression analysis is known as
(a) Error (b) Residue (c) Deviation (d) (a) or (b).
7. If the coefficient of correlation between two variables is –0.9, then the coefficient of determination is
(a) 0.9 (b) 0.81 (c) 0.1 (d) 0.19.
8. Some of the cell frequencies in a bivariate frequency table may be
(a) Negative (b) Zero (c) a or b (d) None of these
9. Scatter diagram is considered for measuring
(a) Linear relationship between two variables (b) Curvilinear relationship between two variables
(c) Neither (a) nor (b) (d) Both (a) and (b).
10. Scatter diagram helps us to
(a) Find the nature of correlation between two variables
(b) Compute the extent of correlation between two variables
(c) Obtain the mathematical relationship between two variables
(d) Both (a) and (c).
11. The covariance between two variables is
(a) Strictly positive (b) Strictly negative
(c) Always 0 (d) Either positive or negative or zero.
12. For finding the degree of agreement about beauty between two Judges in a Beauty Contest, we use
(a) Scatter diagram (b) Coefficient of rank correlation
(c) Coefficient of correlation (d) Coefficient of concurrent deviation
13. Since Blood Pressure of a person depends on age, we need consider
(a) The regression equation of Blood Pressure on age
(b) The regression equation of age on Blood Pressure
(c) Both (a) and (b)
(d) Either (a) or (b).
14. What are the limits of the two regression coefficients?
(a) No limit
(b) Must be positive
(c) One positive and the other negative
AAGAM PUBLISHERS -1-
 (d) Product of the regression coefficient must be numerically less than unity.
15. Bivariate Data are the data collected for
(a) Two variables irrespective of time (b) More than two variables
(c) Two variables at the same point of time (d) Two variables at different points of time
16. Regression analysis is concerned with
(a) Establishing a mathematical relationship between two variables
(b) Measuring the extent of association between two variables
(c) Predicting the value of the dependent variable for a given value of the independent variable
(d) Both (a) and (c).
17. The correlation between shoe-size and intelligence is
(a) Zero (b) Positive (c) Negative (d) None of these.
18. When r = 1, all the points in a scatter diagram would lie
(a) On a straight line directed from lower left to upper right
(b) On a straight line directed from upper left to lower right
(c) On a straight line
(d) Both (a) and (b).
19. If the relationship between two variables x and y in given by 2x + 3y + 4 = 0, then the value of the correlation
coefficient between x and y is
(a) 0 (b) 1 (c) –1 (d) negative
20. What are the limits of the coefficient of concurrent deviations?
(a) No limit (b) Between –1 and 0, including the limiting values
(c) Between 0 and 1, including the limiting values (d) Between –1 and 1, the limiting values inclusive
21. The regression line of y on x is derived by
(a) The minimisation of vertical distances in the scatter diagram
(b) The minimisation of horizontal distances in the scatter diagram
(c) Both (a) and (b)
(d) (a) or (b).
22. Correlation analysis aims at
(a) Predicting one variable for a given value of the other variable
(b) Establishing relation between two variables
(c) Measuring the extent of relation between two variables
(d) Both (b) and (c).
23. If all the plotted points in a scatter diagram lie on a single line, then the correlation is
(a) Perfect positive (b) Perfect negative
(c) Both (a) and (b) (d) Either (a) or (b).
24. If the value of correlation coefficient is positive, then the points in a scatter diagram tend to cluster
(a) From lower left corner to upper right corner (b) From lower left corner to lower right corner
(c) From lower right corner to upper left corner (d) From lower right corner to upper right corner.
25. In case the correlation coefficient between two variables is 1, the relationship between the two variables would be
(a) y = a + bx (b) y = a + bx, b > 0
(c) y = a + bx, b < 0 (d) y = a + bx, both a and b being positive.
26. What is the quickest method to find correlation between two variables?
(a) Scatter diagram (b) Method of concurrent deviation
(c) Method of rank correlation (d) Method of product moment correlation
27. The errors in case of regression equations are
(a) Positive (b) Negative (c) Zero (d) All these
28. If the coefficient of correlation between two variables is 0.7 then the percentage of variation unaccounted for is
(a) 70% (b) 30% (c) 51% (d) 49%
29. For a p x q bivariate frequency table, the maximum number of marginal distributions is
AAGAM PUBLISHERS -2-
 (a) p (b) p + q (c) 1 (d) 2
30. If the plotted points in a scatter diagram lie from upper left to lower right, then the correlation is
(a) Positive (b) Zero (c) Negative (d) None of these
31. Pearson’s correlation coefficient is used for finding
(a) Correlation for any type of relation (b) Correlation for linear relation only
(c) Correlation for curvilinear relation only (d) Both (b) and (c).
32. The coefficient of correlation between two variables
(a) Can have any unit.
(b) Is expressed as the product of units of the two variables
(c) Is a unit free measure
(d) None of these.
33. If there is a perfect disagreement between the marks in Geography and Statistics, then what would be the value of
rank correlation coefficient?
(a) Any value (b) Only 1 (c) Only –1 (d) (b) or (c)
34. The method applied for deriving the regression equations is known as
(a) Least squares (b) Concurrent deviation
(c) Product moment (d) Normal equation
35. The regression coefficients remain unchanged due to a
(a) Shift of origin (b) Shift of scale (c) Both (a) and (b) (d) (a) or (b).
36. A trial is an attempt to
(a) make something possible.
(b) make something impossible.
(c) prosecute an offender in a court of law.
(d) produce an outcome which is neither certain nor impossible.
37. For a binomial distribution, mean and mode
(a) are never equal. (b) are always equal.
(c) are equal when q = 0.50. (d) do not always exist.
38. Poisson distribution may be
(a) unimodal. (b) bimodal. (c) Multi-modal. (d) (a) or (b).
39. The normal curve is
(a) positively skewed. (b) negatively skewed.
(c) symmetrical. (d) all these.
40.
(a) 95% area of a normal distribution. (b) 96% area of a normal distribution.
(c) 99% area of a normal distribution. (d) all but 0.27% area of a normal distribution.
41. Parameter is a characteristic of
(a) population. (b) sample.
(c) probability distribution. (d) both (a) and (b).
42. The variance of a binomial distribution with parameters n and p is

43. Which one is uniparametric distribution?

(a) Binomial. (b) Poisson. (c) Normal. (d) Hyper geometric
44. The total area of the normal curve is
(a) one. (b) 50 per cent.
(c) 0.50. (d) any value between 0 and 1.
45. For a standard normal distribution, the points of inflexion are given by

AAGAM PUBLISHERS -3-

46. An important discrete probability distribution is
(a) Poisson distribution. (b) Normal distribution.
(c) Cauchy distribution. (d) Log normal distribution
47. A binomial distribution is
(a) never symmetrical. (b) never positively skewed.
(c) never negatively skewed. (d) symmetrical when p = 0.5.
48. The method usually applied for fitting a binomial distribution is known as
(a) method of least square. (b) method of moments.
(c) method of probability distribution. (d) method of deviations.
49. The most important continuous probability distribution is known as
(a) Binomial distribution. (b) Normal distribution.
(c) Chi-square distribution. (d) Sampling distribution
50. The mean deviation about median of a standard normal variate is

51. If X and Y are two independent normal random variables, then the distribution of (X+Y) is
(a) normal. (b) standard normal. (c) T. (d) chi-square.
52. An example of a bi-parametric discrete probability distribution is
(a) binomial distribution. (b) poisson distribution.
(c) normal distribution. (d) both (a) and (b).
53. The probability mass function of binomial distribution is given by

54. The wage of workers of a factory follow

(a) Binomial distribution. (b) Poisson distribution.
(c) Normal distribution. (d) Chi-square distribution
55. A binomial distribution with parameters n and p can be approximated by a Poisson distribution with parameter m =
np is

56. In a discrete random variable x follows uniform distribution and assumes only the values 8 , 9, 11, 15, 18, 20. Then
P(x = 12) is
(a) 1/6 (b) 0 (c) 1/7 (d) none
57. The results of ODI matches between India and Pakistan follows
(a) Binomial distribution. (b) Poisson distribution.
(c) Normal distribution. (d) (b) or (c).
58. The important characteristic(s) of Bernoulli trials
(a) each trial is associated with just two possible outcomes.
(b) trials are independent.
(c) trials are infinite.
(d) both (a) and (b).
59. The mean of binomial distribution is
(a) always more than its variance. (b) always equal to its variance.
(c) always less than its variance. (d) always equal to its standard deviation
60. Poisson distribution is
(a) always symmetric. (b) always positively skewed.
(c) always negatively skewed. (d) symmetric only when m = 2.

AAGAM PUBLISHERS -4-

61. Area of the normal curve

62. Number of misprints per page of a thick book follows

(a) Normal distribution. (b) Poisson distribution.
(c) Binomial distribution. (d) Standard normal distribution
63. An example of a parameter is
(a) sample mean. (b) population mean.
(c) binomial distribution. (d) sample size
64. An example of a bi-parametric discrete probability distribution is
(a) binomial distribution. (b) poisson distribution.
(c) normal distribution. (d) both (a) and (b).
65. For a Poisson distribution,
(a) mean and standard deviation are equal. (b) mean and variance are equal.
(c) standard deviation and variance are equal. (d) both (a) and (b).
66. The normal curve is
(a) Bell-shaped. (b) U- shaped.
(c) J-shaped. (d) Inverted J-shaped.
67.

68. What is the first quartile of X having the following probability density function?

(a) 4. (b) 5. (c) 5.95. (d) 6.75.

69. The mean of a binomial distribution with parameter n and p is

70. Which one is not a condition of Poisson model?

(a) the probability of having success in a small time interval is constant.
(b) the probability of having success more than one in a small time interval is very small.
(c) the probability of having success in a small interval is independent of time and also of earlier success.
(d) the probability of having success in a small time interval (t, t + dt) is kt for a positive constant k.

-0-0-0-0-0-0-0-0-0-0-

AAGAM PUBLISHERS -5-