Top 150+ Solved Quantitative Methods for Economic Analysis 1 MCQ Questions Answer
Q. 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
Q. 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
Q. If there is a very strong correlation between two variables then the correlationcoefficient must be
a. any value larger than 1
b. much smaller than 0, if the correlation is negative
c. much larger than 0, regardless of whether the correlation is negative or positive
d. none of these alternatives is correct
Q. In regression, the equation that describes how the response variable (y) is related to theexplanatory variable (x) is:
a. the correlation model
b. the regression model
c. used to compute the correlation coefficient
d. none of these alternatives is correct
Q. Regression modelling is a statistical framework for developing a mathematical equationthat describes how
a. one explanatory and one or more response variables are related
b. several explanatory and several response variables response are related
c. one response and one or more explanatory variables are related
d. all of these are correct
Q. A ______ is a value that may change within the scope of a given problem or set ofoperations
a. constant
b. variable
c. function
d. exponent
Q. __________ variable is a factor that is not itself under study but affects the measurementof the study variables or the examination of their relationships.
a. exogenous
b. endogenous
c. extraneous
d. dependent
Q. An index number is used:
a. to measure changes in quantity
b. to measure changes in demand
c. to measure changes in a variable over time
d. to measure changes in price
Q. The ratio of a new price to the base year price is called the:
a. price absolute
b. price decrease
c. price increase
d. price relative
Q. A simple aggregate quantity index is used to:
a. measure the change in price of a product
b. measure the change in quantity of a product
c. measure the overall change in quantity of a range of products
d. measure the overall change in price of a range of products
Q. A simple aggregate price index:
a. ignores relative quantities
b. compares relative quantities to relative prices
c. considers relative quantities
d. compares absolute prices to absolute quantities
Q. This index measures the change from month to month in the cost of a representative‘basket’ of goods and services of the type bought by a typical household
a. paasche price index
b. retail price index
c. laspeyres price index
d. financial times index
Q. The Laspeyres and Paasche index are examples of:
a. weighted price index only
b. aggregate index numbers
c. weighted index numbers
d. weighted quantity index only
Q. The Laspeyres price index:
a. regards the current year quantities as fixed
b. regards the base year quantities as fixed
c. regards the base year prices as fixed
d. regards the current quality as fixed