Statistics I

Specimen Theory Questions

Specimen Theory Questions for End-Semester Examination:

Introduction:
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What is a variable? What are the different types of variables? Give five examples for each type of variable.
What do you understand by Statistics? What are its subdivisions? Give examples of situation where you can
employ statistics for making decisions.
State the importance of presenting data in tables and charts. What are the different tables and charts used for
presenting the numerical data?
What do you understand by Frequency Distribution? Explain the problems that arise in construction of a
frequency distribution table.
Explain clearly the meaning of Statistics.

Central Tendency and Dispersion:

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What do you understand by central tendency? What are the measures of central tendency? Describe their
importance in Statistics.
What is the difference between arithmetic mean and weighted arithmetic mean? Describe a hypothetical situation
where weighted arithmetic mean is more useful than arithmetic mean.
What is the geometric mean? Describe a hypothetical situation where geometric mean is more useful than
arithmetic mean.
Define Median. Describe how median is calculated in different situations. Highlight the major advantages of
median over arithmetic mean.
What do you understand by Mode? Describe how mode is calculated in different situation.
Discuss the relative merits and demerits of arithmetic mean, median and mode.
Explain why measures of central tendency alone are not sufficient for describing a data batch. What are the
supporting measures? Explain how those supporting measures help in understanding the nature of a data batch.
What are the measures of dispersion? Explain its importance in data analysis.
What do you understand by relative measure of dispersion? Explain the utility of coefficient of variation.
What are the Fractiles? Explain why median is called 0.5-fractile. How would you calculate the range of middle
50% observation in a data batch?

Probability Theory:
16) How are the terms chance and probability related. Define the following terms with appropriate examples.
Random Experiment, Sample space, Event, Favorable cases, mutually exclusive events.
17) What do you understand by Relative Frequency Approach of assigning probability of a event? Do you think this
approach is more useful than classical approach in particular situations? Give reasons to justify your answer.
18) What are the different approaches of probability? Explain each in detail.
19) Define classical probability. Explain why this probability is often called a priori probability. Comment on the utility
of this approach in assigning probability in specific business and management situations.
20) Explain with example: Dependence and Independence of Events. Conditional Probability
21) Explain the Bayes Theorem. Why is this theorem very important in Management and Business?
Random Variables and Probability Distribution:
22) What do you understand by random variables? Distinguish between probability distribution and frequency
distribution.
23) Describe with example the probability distribution of a discrete random variable.
24) Define mean and variance of a probability distribution. If a fair die is rolled, the expected value of number turned
is 3.5, how would you give a literally meaningful explanation to this statement.
25) What are the characteristics of trials that produce Binomial Distribution? Write down the main features of binomial
distribution.
26) What are the characteristics of the process that produce Poisson distribution? Write down the features of Poisson
distribution.
27) What are the chief features of Normal Distribution.

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Statistics I
Specimen Theory Questions

28) Describe the conditions under which Binomial Distribution may be approximated by Poisson Distribution and
Normal Distribution.
Sampling Distributions:
29) Distinguish between Parameters and Statistics. Explain the main objectives of Sampling.
30) Explain what do you understand by Simple Random Sampling? Describe the practical methods of drawing a
random sample?
31) What is Systematic sampling? What is the major difference of this sampling with Simple random sampling.
Describe how would you draw a sample of size 5 from a population of size 100 using Systematic Sampling.
32) Explain how Stratified Sampling differs from Cluster sampling. Describe how would draw a sample of 30 BBA
level students of Kathmandu University.
33) What do you understand by Sampling Distribution of a Statistic? Do the standard error of a statistic have any
connection with Sampling Distribution? Explain.
34) What do you understand by Sampling Distribution of mean? What is the Central Limit theorem? How this theorem
is utilized in getting the sampling distribution of mean?
35) How does the expression for standard error of mean differ in sampling from finite and infinite population? What is
the basic relation between sample size, standard error of mean and precision of sample mean.
36) Explain Sampling Distribution of Proportion. Give expression for standard error of proportion in different situations.
Simple Linear Regression and Correlation:
37) What are Regression and Correlation Analyses. Describe how the value and sign of b in the regression line
Y=a+bX is interpreted.
38) Describe how the strength of fitted regression line is found in Regression analysis.
39) What are explained and unexplained variations in the dependent variable.
40) Define coefficient of determination. Explain how its value is interpreted.
41) Describe how the scatter diagrams are useful in Regression and Correlation Analysis.
42) Explain how would you interpret the value and sign of r and b in relation with scatter diagram.
43) What are the basic assumptions necessary to make inference about regression parameter.
44) Correlation and Regression Analyses can not establish cause and effect relationship between variables, Do you
agree with this statement? Why or why not?
45) What do you understand by standard error of estimate? Describe how the value of this standard error of estimate
utilized in making inference about the population parameter in Regression Analysis.

Note for the Students: You are required to be well prepared to write answers of the above theory questions. You will
find the handouts to be helpful in organizing the answers. If time permits, there will be a session on how to write
answers of the theory questions.

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