CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
SMUAPR15
ASSESSMENT_CODE BB0010_SMUAPR15
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
8305
QUESTION_TEXT Explain the Scope and Applications of Statistics?
SCHEME OF
EVALUATION
Statistics is considered to be a distinct branch of study applicable to
investigations in many branches of science. Statistical methods are
applied to specific problems in Biology, Medicine, Agriculture,
Commerce, Business Economics, Industry, Insurance, Sociology,
Psychology etc.
Statistics in Biology, Medicine, Agriculture, etc.; Statistical methods
are in much use in the study of problems associated with Biological
sciences. They are applied in the study of growth of plant, movement
of fish population in the ocean, migration of birds, effect of newly
invented medicines, theories of heredity, estimation of yield of crop,
effect of newly invented medicines, theories of heredity, estimation
of yield of crop, effect of fertilizer on yield, birth rate, death rate,
population growth, growth of bacteria etc. The branch of Statistics
which deals with problems in Biology is Biometry. The branch which
deals with problems relating to population growth is Demography. It
is well known that insurance premiums are based on the age
composition of the population and the mortality rates. Actuarial
science deals with the calculation of insurance premiums and
dividends. 5 mark
Statistics is Economics, Commerce, Business etc.; Statistics is part
and parcel of Economics, Commerce and Business. Statistical
analysis of variations of price, demand and production are helpful to
businessmen and economists. Cost of living index numbers help in
economic planning and fixation of wages. They are used to estimate
the value of money. Analysis of demand, price, production costs,
inventory cost, etc., help in decision making in business activities.
Management of limited resources and labour in obtaining maximum
profit is done by statistical analysis of data. Planned recruitments and
distribution of staff, proper quality control methods, careful study of
demand for goods in the market, capture of market by advertisement,
balance investment, etc. help the producer to extract maximum profit
out of minimum capital. In industries, statistical quality control
techniques help in increasing and controlling the quality of products
at minimum cost. A government’s administrative system is fully
dependent on production statistics, income statistics, labour statistics,
economic indices of cost, price, etc. Economic planning of any nature
is entirely based on statistical facts. Statistics has become so
important today that hardly any science exists independent of this,
and hence the statement ‘Sciences without Statistics bear no fruit;
Statistics without Sciences has no root’. 5 mark
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
8308
QUESTION_TEXT What do you mean by Secular Trend?
SCHEME OF
EVALUATION
Secular trend is the long-term tendency of the time series to move in
an upward or downward direction. It summarises the essential life
story of the time series. It indicates how, on the whole, the time series
has behaved over the entire period under study. Also referred to as
secular variations or long-term movements, these are the result of
long-term forces that gradually operate on the time series variable.
A few examples of such forces include long-term changes in
productivity, increase in the rat of capital formation, growth of
population, technological innovations, transformation in socioeconomic setup, etc. Since these forces occur in a slow process, they
exert influence on the time series in a gradual manner.3 mark
The total period which is required to permit the emergence of a trend
depends on (i) the type of event the time series data relate to, and (ii)
the length of the time unit (hour, month, year etc.) against which the
data are recorded. The time period could be as short as a few days or
as long as fifty years, depending on the nature of the even under
consideration.
Cyclical Variations
Cyclical variations, also termed as business cycles, are the periodic
movements in the time series around the trend line. These are the
upswings and downswings in the time series that are observable over
extended periods of time. Neither the amplitude nor the frequency of
occurrence of these cycles is uniform. Empirical studies based on the
analysis of time series data on a large number of major economic
aggregates conducted in the United States and other developed
countries have shown that the length of time interval after which
cycles occur ranges from 8 to 10 years.3 mark
Long waves extending up to 50 years have also been observed. These
long waves are difficult to distinguish as they get mixed up with the
trend line. Cycles of 8 to 9 years duration are, however, more
common. These are called trade cycles, while those occurring after a
time interval of 3 to 4 years are known as minor cycles. 2 mark
The forces that give rise to minor cycles cannot be easily listed for
being numerous in number and difficult to separate from those giving
rise to secular variations. Consequently, business cycles are relatively
less predictable than the other types of variations in a time series.
2mark
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73102
QUESTION_TEXT
Define index number. What are their uses and limitations?
SCHEME OF
EVALUATION
An index number is a statistical device designed to measure relative level of a group of
related variables over a period of time or space.(1 mark)
Uses of Index Numbers:
1. Index numbers are useful to governments in formulating policies regarding
economic activities such as taxation, imports and exports, grant of licence to new firms,
bank rate, etc.
2. Index numbers are useful in comparing variations in production, price, etc.
3. Index numbers help industrialists and businessmen in planning their activities such
as production of goods, their stock, etc.
4. Consumer price index numbers are used for the fixation of salary and grant of
allowances to employees.
5. Consumer price index numbers are used for the evaluation of purchasing power of
money. (5 marks)
Limitations of Index Numbers:
1. While constructing index numbers, some representative items alone are made use of.
The index number so obtained may not indicate the changes in the concerned fields
accurately.
2. As customs and habits change from time to time, the use of commodities also vary.
And so, it is not possible to assign proper weights to various items.
3. Many formulae are used for the construction of index numbers. These formulae give
different values for the index.
4. There is ample scope for bias in the construction of index numbers. By altering the
price quotation or by improper selection of items, index numbers can be manipulated. (4
marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73103
QUESTION_TEXT
What is time series? Briefly explain the four components of time series.
SCHEME OF
EVALUATION
A time series is the data on any variable recorded over a constant time
Interval. (2 marks)
1. Secular variations (2 marks)
2. Cyclical variations (2 marks)
3. Seasonal variations (2 marks)
4. Irregular variations (2 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73105
QUESTION_TEXT
Briefly explain the methods of collection of primary data
Important methods of collecting primary data are:

SCHEME OF EVALUATION
Direct personal interview. (2 marks)
2.
Indirect personal interview. (2 marks)
3.
Information through correspondents. (2 marks)
4.
Method of Questionnaire. (2 marks)
o
Method of Schedule. (2 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
117996
Write short notes on:
i.
Histogram
QUESTION_TEXT
ii.
Frequency polygon
iii.
Cumulative frequency curve
i.
Histogram: In histogram the class interval are plotted along X axis
and the frequencies along y axis. The first class interval is taken on X
axis and on it a rectangle with the frequency corresponding to that
class interval as height is erected. Then the second class interval is
taken on x-axis and on it a rectangle with the frequency corresponding
to this second class interval as height is erected. In this way rectangle
corresponding to each of the class intervals erected side by side.
Frequency polygon: To construct frequency polygon, the mid values of
the class intervals are taken as abscissa and the corresponding
frequencies are ordinate and these points are plotted on a paper.
These points are then joined in order by straight lines. Finally the first
of these points is joined to the lower limit of the first interval and the
last of these points to the upper limit of the interval. The polygon so
formed by these lines and X axis is called frequency polygon.
Cumulative Frequency Curve: In these graphs, the points with the
upper limits of class intervals abscissa and the corresponding less than
cumulative frequencies as ordinates are plotted. Then a free hand
curve is drawn passing through these points. This curve is known as
less than cumulative frequency curve or less than ogive.
ii.
SCHEME OF
EVALUATION
iii.