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ICAR AIEEA-PG Business Statistics & Quantitative Methods: practice questions

ICAR AIEEA-PG (Master's admission and PG scholarship) · India · National Testing Agency for ICAR

Original practice questions written to the published syllabus · not past papers
10worked here, free
85written 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

What ICAR AIEEA-PG asks from it

ICAR AIEEA-PG Group 06 Social Sciences (Agricultural Economics; Agricultural Extension)

Elements of statistics and tests of significance: mean, median, mode, SD and CV computations; probability rules; binomial, Poisson and normal; SRS and stratified sampling; z, t, chi-square and F tests with stated critical values; correlation and regression coefficients; index number formulas and tests; time-series components and trend.

ICAR AIEEA-PG Group 19 Agri-Business Management (Units V and VII)

Quantitative ability and data interpretation: averages, percentages, growth rates, weighted means, probability and quick calculations from tables.

Where the 85 questions fall

How our questions for ICAR AIEEA-PG spread across the units of Business Statistics & Quantitative Methods. Difficulty: 27 easy, 41 medium, 17 hard.

Tests of significance12
Probability distributions8
Sampling techniques8
Regression8
Time series8
Correlation7
Index numbers7
Measures of central tendency6
Measures of dispersion6
Mathematics for economics: differentiation and optimisation6
Mathematics for economics: linear algebra and integration5
Probability4

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 dispersion · easy

Landholdings in a district have first quartile 1.2 ha and third quartile 3.6 ha. What is the quartile deviation?

  1. 1.2 ha
  2. 2.4 ha
  3. 0.5 ha
  4. 3.6 ha
Answer and working

A. 1.2 ha

Quartile deviation = (Q3 - Q1)/2 = (3.6 - 1.2)/2 = 1.2 ha. 2.4 ha is the interquartile range, not half of it; 0.5 is the coefficient of QD, (Q3 - Q1)/(Q3 + Q1) = 2.4/4.8, a unit-free number.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

3 · 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

4 · 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

5 · Regression · medium

A regression of yield (q/ha) on rainfall (mm) fitted over rainfall of 600 to 1,000 mm is Yield = 2.2 + 0.026 Rainfall. A field that received 850 mm yielded 25.0 q/ha. What is its residual?

  1. +0.7 q/ha
  2. -0.7 q/ha
  3. 24.3 q/ha
  4. +2.9 q/ha
Answer and working

A. +0.7 q/ha

Predicted = 2.2 + 0.026 x 850 = 24.3; residual = actual - predicted = 25.0 - 24.3 = +0.7. Predicted minus actual has the wrong sign; 24.3 is the prediction itself. +2.9 drops the intercept from the prediction (25.0 - 22.1).

Further reading: OpenStax, Introductory Business Statistics

6 · 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

7 · 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

8 · Index numbers · medium

A wholesale price index stands at 150 in the current year and at 125 in the year chosen as the new base. What is the current value on the new base?

  1. 125
  2. 187.5
  3. 120
  4. 25
Answer and working

C. 120

New index = old index/old index of new base year x 100 = 150/125 x 100 = 120. 187.5 multiplies instead of divides; 25 is the difference in points.

Further reading: Gupta and Kapoor, Fundamentals of Mathematical Statistics

9 · 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

10 · Time series · easy

The trend value of a processor's sales for next quarter is 900 tonnes and that quarter's seasonal index is 85. Using the multiplicative model, what is the forecast?

  1. 1,059 tonnes
  2. 815 tonnes
  3. 985 tonnes
  4. 765 tonnes
Answer and working

D. 765 tonnes

Forecast = trend x seasonal index/100 = 900 x 0.85 = 765. 1,059 divides by 0.85 (that deseasonalises, it does not forecast); 815 subtracts 85 as if the model were additive. 985 adds 85 instead.

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

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Business Statistics & Quantitative MethodsThe full study manual, free ICAR AIEEA-PGFormat, sections and how it has changed

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