Descriptive statistics: measures of central tendency and dispersion, correlation, index numbers. - One Line Questions

1. The GDP deflator is a measure of the price level of all new, domestically produced, final goods and services in an economy. It is calculated as: — (Nominal GDP / Real GDP) * 100
2. What is the range of possible values for Pearson's correlation coefficient? — -1 to +1
3. If the variance of a dataset is 25, what is the standard deviation? — 5
4. The calculation of the Consumer Price Index (CPI) involves: — A fixed basket of goods and services
5. What does a correlation coefficient of 0 signify? — No linear relationship between the variables
6. What does a negative correlation coefficient (e.g., -0.7) suggest? — As one variable increases, the other variable tends to decrease
7. Paasche index formula uses weights from which period? — Current period
8. Which statistical tool is used to estimate the relationship between a dependent variable and one or more independent variables? — Regression analysis
9. What is the primary difference between correlation and regression? — Correlation measures the strength of association, while regression predicts one variable from another
10. Laspeyres index formula uses weights from which period? — Base period
11. The sum of deviations from the mean for any dataset is always: — Zero
12. Which index number construction method involves chain-linking? — Chain-base method
13. If the correlation between income and expenditure is very high and positive, it implies: — Higher income is associated with higher expenditure
14. What is the formula for calculating the range of a dataset? — Highest value - Lowest value
15. Which of the following is a disadvantage of using the mean as a measure of central tendency? — It is sensitive to outliers
16. If the mean of a dataset is 50 and the median is 45, what does this suggest about the distribution? — It is positively skewed
17. What is a common issue with the Laspeyres index formula? — It tends to overstate inflation due to substitution bias
18. When constructing an index number, if the weights are allowed to change over time, which formula is typically used? — Paasche
19. The Fisher index is considered ideal because it is the geometric mean of: — Laspeyres and Paasche price indices
20. Which type of relationship is NOT measured by Pearson's correlation coefficient? — Curvilinear
21. Which type of correlation is measured by Spearman's rank correlation coefficient? — Monotonic relationship between ordinal variables
22. Which of the following is NOT a measure of central tendency? — Variance
23. Which measure of central tendency is appropriate for categorical data? — Mode
24. For a perfectly symmetrical distribution, which of the following is true? — Mean = Median = Mode
25. Which measure of dispersion is calculated as the square root of the variance? — Standard Deviation
26. Which measure of central tendency is most affected by extreme values (outliers)? — Mean
27. Which measure of central tendency is also known as the average? — Mean
28. The mode of a distribution can be found by identifying the: — Most frequent value
29. If the correlation coefficient between study hours and exam scores is 0.8, what can be concluded? — There is a strong positive linear association between study hours and exam scores
30. In a scatter plot, if the points tend to cluster around an upward-sloping line, it indicates: — Positive correlation
31. A correlation coefficient of +1 indicates: — A perfect positive linear relationship
32. Pearson's correlation coefficient (r) measures the strength and direction of the linear relationship between: — One independent variable and one dependent variable
33. The Paasche index tends to ____ inflation compared to the Laspeyres index due to its use of current period weights. — Understate
34. Which index number is typically used to measure inflation experienced by consumers? — Consumer Price Index (CPI)
35. The Wholesale Price Index (WPI) typically measures price changes at which stage? — Wholesale or producer level
36. Which of the following is a measure of relative dispersion? — Coefficient of Variation
37. The coefficient of determination (R-squared) represents: — The proportion of the variance in the dependent variable that is predictable from the independent variable(s)
38. What does a standard deviation of zero indicate about a dataset? — All values in the dataset are identical
39. The interquartile range (IQR) is the difference between: — The first and third quartiles
40. If a dataset has a median of 60 and an interquartile range of 20, what does this imply? — The middle 50% of the data falls within a range of 20 values around 60
41. What does the median represent in a dataset? — The middle value when the data is ordered
42. What does a base year in index numbers represent? — A reference year against which other years are compared
43. What does a p-value less than 0.05 typically indicate in hypothesis testing for correlation? — There is a statistically significant linear relationship
44. Which of the following is a limitation of index numbers? — They are unaffected by changes in quality
45. What is the primary purpose of calculating measures of dispersion? — To understand the spread or variability of the data
46. Which measure of dispersion is calculated as the difference between the highest and lowest values in a dataset? — Range
47. Which measure of dispersion is less affected by outliers than the range? — Interquartile Range
48. Which measure of dispersion is expressed in the same units as the original data? — Standard Deviation
49. Which index number measures the change in the price of a basket of goods and services over time? — Consumer Price Index (CPI)
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