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ASRB NET and ARS / SMS / STO recruitment Business Statistics & Quantitative Methods: practice questions

ASRB NET and ARS / SMS / STO recruitment · India · Agricultural Scientists Recruitment Board (ICAR)

Original practice questions written to the published syllabus · not past papers
10worked here, free
63written to this exam in this subject
12syllabus units

What this subject covers

The statistics every later subject leans on: describing data, probability, sampling, testing and relating variables, plus the mathematics economists use.

In the exams: agricultural master's entrance examinations, elements of statistics and tests of significance (heavy); agricultural master's entrance examinations, agribusiness quantitative units (present); quantitative sections of agricultural development bank officer recruitment and agricultural field officer recruitment in banking

Where the 63 questions fall

How our questions for ASRB NET and ARS / SMS / STO recruitment spread across the units of Business Statistics & Quantitative Methods. Difficulty: 7 easy, 32 medium, 24 hard.

Tests of significance8
Mathematics for economics: linear algebra and integration8
Index numbers7
Mathematics for economics: differentiation and optimisation7
Sampling techniques6
Regression5
Time series5
Probability distributions4
Correlation4
Measures of central tendency3
Measures of dispersion3
Probability3

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Measures of central tendency · hard

Monthly fertiliser purchases (kg) of 50 farmers are grouped as: 0-10: 5 farmers, 10-20: 12, 20-30: 20, 30-40: 8, 40-50: 5. Using the grouped-data formula, what is the modal purchase?

  1. 25.0 kg
  2. 26.0 kg
  3. 24.0 kg
  4. 26.7 kg
Answer and working

C. 24.0 kg

Modal class 20-30 (f1 = 20), f0 = 12, f2 = 8. Mode = L + ((f1 - f0)/(2f1 - f0 - f2)) x h = 20 + (8/20) x 10 = 24.0 kg. 25.0 is the class mid-point; 26.0 swaps f0 and f2 (numerator f1 - f2 = 12); 26.7 uses only (f1 - f2) = 12 as the denominator.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

2 · Measures of central tendency · medium

Which statement about averages is correct?

  1. The sum of absolute deviations is least when taken about the median
  2. The sum of squared deviations is least when taken about the median
  3. The sum of deviations from the median is always zero
  4. The geometric mean of positive values is never less than the arithmetic mean
Answer and working

A. The sum of absolute deviations is least when taken about the median

Absolute deviations are minimised about the median; squared deviations are minimised about the mean, and it is deviations from the mean (not the median) that sum to zero. For positive values AM >= GM >= HM, so the GM is never greater than the AM.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

3 · Measures of dispersion · hard

Landholdings in a district have Q1 = 1.2 ha, median 2.0 ha and Q3 = 3.6 ha. What is Bowley's coefficient of skewness?

  1. -0.33
  2. 0.33
  3. 0.80
  4. 0.67
Answer and working

B. 0.33

Bowley's Sk = (Q3 + Q1 - 2 Md)/(Q3 - Q1) = (3.6 + 1.2 - 4.0)/(2.4) = 0.8/2.4 = 0.33, positive skew (the upper quartile lies further from the median). 0.80 forgets to divide; -0.33 reverses the sign. 0.67 is (Q3 - Md)/(Q3 - Q1), the upper gap alone.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

4 · Probability distributions · hard

Next month's mandi price of a pulse (rupees per kg) is forecast as 18 with probability 0.2, 20 with probability 0.5 and 24 with probability 0.3. What are the expected price and its variance?

  1. Mean 20.7, variance 2.23
  2. Mean 20.7, variance 6.22
  3. Mean 20.8, variance 437.6
  4. Mean 20.8, variance 4.96
Answer and working

D. Mean 20.8, variance 4.96

E(X) = 18(0.2) + 20(0.5) + 24(0.3) = 3.6 + 10 + 7.2 = 20.8. E(X^2) = 324(0.2) + 400(0.5) + 576(0.3) = 437.6. Var = E(X^2) - [E(X)]^2 = 437.6 - 432.64 = 4.96. The SD is 2.23; 20.7 is the unweighted mean of the three prices; E(X^2) alone is not the variance.

Further reading: Anderson, Sweeney and Williams, Statistics for Business and Economics

5 · Tests of significance · hard

Three fertiliser schedules are each tried on 4 plots. The treatment sum of squares is 60 and the error sum of squares is 90. What is the ANOVA F and the conclusion at 5 per cent (critical F with (2, 9) df = 4.26)?

  1. F = 0.67; schedules do not differ
  2. F = 3.00; schedules differ significantly
  3. F = 2.67; schedules do not differ significantly
  4. F = 3.00; schedules do not differ significantly
Answer and working

D. F = 3.00; schedules do not differ significantly

Treatment df = 3 - 1 = 2; error df = 12 - 3 = 9. MS treatment = 60/2 = 30; MS error = 90/9 = 10; F = 3.00 < 4.26. 0.67 is SS treatment/SS error without dividing by df; 2.67 uses error df 8 instead of 9 (30/(90/8)).

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

6 · Correlation · medium

If each rainfall value is converted from mm to cm and each yield value from q/ha to t/ha, and 10 is then added to every yield value, what happens to the correlation between rainfall and yield?

  1. It is divided by 100
  2. It rises by 10
  3. It is divided by 10
  4. Unchanged
Answer and working

D. Unchanged

r is independent of change of origin and of scale (for positive scale factors). Only a negative scale factor on one variable flips its sign.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

7 · Index numbers · easy

Which index number formula satisfies both the time reversal test and the factor reversal test?

  1. Laspeyres' base-weighted index
  2. Paasche's current-weighted index
  3. Simple aggregative index
  4. Fisher's ideal index
Answer and working

D. Fisher's ideal index

Fisher's index satisfies time and factor reversal (but not the circular test). Laspeyres and Paasche satisfy neither reversal test.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

8 · Index numbers · medium

When consumers shift purchases toward goods whose prices have risen less, a Laspeyres consumer price index tends to:

  1. Overstate the rise in the cost of living
  2. Understate the rise in the cost of living
  3. Measure it exactly
  4. Fall below the Paasche index always by a fixed amount
Answer and working

A. Overstate the rise in the cost of living

Laspeyres keeps base-period quantities, so it gives too much weight to goods that became relatively dearer and that people bought less of: an upward (substitution) bias. Paasche, with current quantities, tends to the opposite.

Further reading: Anderson, Sweeney and Williams, Statistics for Business and Economics

9 · Index numbers · hard

Link relatives (current year as a percentage of the previous year) of the price of a spice are 110, 105 and 98 for three successive years after the base year. What is the chain index for the third year (base year = 100)?

  1. 104.3
  2. 113.2
  3. 113.0
  4. 313.0
Answer and working

B. 113.2

Chain index = product of link relatives: 1.10 x 1.05 x 0.98 x 100 = 113.2. 104.3 is the average link relative; 113.0 adds the percentage changes (10 + 5 - 2); 313 adds the relatives.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

10 · Time series · medium

Quarterly seasonal indices of fertiliser sales are computed as 130, 90 and 110 for the first three quarters. Under the usual convention, what is the fourth-quarter index?

  1. 70
  2. 100
  3. -30
  4. 110
Answer and working

A. 70

Quarterly indices sum to 400 (average 100). 400 - (130 + 90 + 110) = 70. 100 would be the average, not the missing value. -30 is the deviation from 100 (100 - 130), not the index itself.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

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Business Statistics & Quantitative MethodsThe full study manual, free ASRB NET and ARS / SMS / STO recruitmentFormat, sections and how it has changed

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