Question:

____________ measure of living costs based on changes in retail prices

A.

correlation

B.

whole sale price index

C.

consumer price index

D.

regression

Answer» c. consumer price index

Question:

______refer to population characteristics while _____describe sample characteristics

A.

statistic, parameter

B.

parameter, statistic

C.

regression, correlation

D.

correlation, regression

Answer» b. parameter, statistic

Question:

Which one of the following is not a component of the multiplicative time series model?

A.

trend

B.

irregular variation

C.

regression trend

D.

seasonality

Answer» c. regression trend

Question:

If two variables are highly correlated, what do you know

A.

that they always go together

B.

that high values on one variable lead to high values on the other variable

C.

that there are no other variables responsible for the relationship

D.

that changes in one variable are accompanied by predictable changes in the other

Answer» d. that changes in one variable are accompanied by predictable changes in the other

Question:

The correlation coefficient is used to determine:

A.

a specific value of the y-variable given a specific value of the x-variable

B.

a specific value of the x-variable given a specific value of the y-variable

C.

the strength of the relationship between the x and y variables

D.

none of these

Answer» c. the strength of the relationship between the x and y variables

Question:

Which two components are smoothed out by the moving average

A.

seasonality and irregular

B.

cyclicality; seasonality

C.

variability: randomality

D.

randomality; seasonality

Answer» a. seasonality and irregular

Question:

If Spearman’s co-efficient of rank correlation is equal to one, then:

A.

all the ‘total variation’ is ‘explained’ by the regression line

B.

the rankings of the two variables partially agree

C.

the rankings of the two variables is totally different

D.

the rankings of the two variables totally agree

Answer» d. the rankings of the two variables totally agree

Question:

The rule of thumb for creating a frequency distribution is to divide the data into 5-15 classes. While larger numbers of classes allow for larger data sets, how do you know exactlyhow many classes to use

A.

if in doubt about the number of classes, select 10 since it is the midpoint between 5 and 15 classes

B.

select the number of classes that provides definition to the shape of the data

C.

determine the width of the class interval, then calculate the number of classes

D.

any number of classes between 5 and 15 is sufficient

Answer» b. select the number of classes that provides definition to the shape of the data

Question:

Which of the curves is more peaked than the normal curve?

A.

mesokurtic

B.

platykurtic

C.

lapokurtic

D.

skewness

Answer» c. lapokurtic

Question:

A monthly price index that measures the changes in the prices of goods sold in a primarymarket is known as the

A.

consumer price index

B.

quantity index

C.

index of industrial production

D.

producer price index

Answer» d. producer price index