# BUSINESS STATISTICS IMPORTANT THEORETICAL QUESTIONS

Unit 1 - Measure of Central Tendency and Dispersion
Theoretical Questions:
Q. Define statistics. What are its characteristics? Mention its importance and limitations.
Q. What are various types of statistical data? Distinguish between primary and secondary data. Mention various methods for collecting data.
Q. What is census and sample survey? Distinguish between them. What are their merits and demerits?
Q. What are the essential qualities of a measure of central tendency and a good measure of dispersion?
Q. What is dispersion? What purpose does it serve? What are its various types? Distinguish between absolute and relative measures of dispersion.
Q. Prove that:
• AM > GM > HM
• GM = nth root of product of AM and HM

Unit 2 – Correlation and Regression analysis
Theoretical Questions:
Q. What is correlation analysis? What are its various kinds? What is its range?
Q. Define regression analysis. Why there are two regression lines? Distinguish between correlation and regression.
Q. What are the uses and limitations of correlation and regression analysis?
Q. Write the properties of coefficient of correlation. Prove that:
• Correlation coefficient is the geometric mean of two regression coefficient
• Correlation coefficient is independent of the change of the origin and scale of measurement
• Regression coefficient is independent of the change of the origin and but dependent on scale of measurement
Q. Mention three methods for calculation of coefficient of correlation.
Unit 3 – Index Number
Theoretical Questions:
Q. Explain index number. Mention its importance (Uses) and Limitations. What are the problems in construction in index number?
Q. Mention three types of index number. (Price Index number, quantity index number and value index number)
Q. Mention two merits and demerits of Laspeyre’s and Paasche’s index number.
Q. Why Index number is called “Economic Barometer” (Uses of Index number)?
Q. Distinguish between:
(a) Time reversal test and Factor reversal test
(b) Price index and Quantity index number
(c) Weighted and Unweighted (Simple) Index number
(d) Fixed base and chain base index number
Q. What is cost of living index? What is its importance?
Q. Mention any three important methods for calculating index number. Why fisher’s index is called ideal index number?
Unit 4 – Time Series analysis
Theoretical Questions:
Q. What is time series analysis? Mention its utilities.
Q. Discuss the components of time series analysis. Mention the two models used for time series analysis.
Q. What is Trend or secular trend? Mention the factors responsible for trend.
Q. Discuss various methods used for time series analysis.
Q. Explain least square method of time series analysis with respective merits and demerits.
Q. Write short notes on shifting of trend and deseasonalised value.