Quantitative Techniques for Business Decision MCQ Questions

Students should go through the Quantitative Techniques for Business Decision MCQ with Answers provided below. Quantitative Techniques for Business Decision is an important topic for various commerce and competitive examinations. It’s important to practice as many MCQ Questions with Answers for Quantitative Techniques for Business Decision as it will help them to practice and gain more expertise. Our team of expert faculty has designed questions with multiple-choice based on the latest examination pattern issued by various institutes. This will help them to gain understanding, have stronger concepts and get a better score in exams.

MCQ with Answers for Quantitative Techniques for Business Decision

Question. In ………………… regression analysis, only one independent variable is used to explain the dependent variable.
(a) Multiple
(b) Non-linear
(c) Linear
(d) None of these

Question. The regression coefficient and correlation coefficient of the two variables will be the same if their ………………………..are same.
(a) Arithmetic mean
(b) Standard deviation
(c) Geometric mean
(d) Mean deviation

Question. If r= +1, the correlation is said to be ……………….
(a) High degree of +ve correlation
(b) High degree of –ve correlation
(c) Perfect +ve correlation
(d) Perfect –ve correlation

Question. If the dots in a scatter diagram fall on a narrow band, it indicates a ………………….. degree of correlation.
(a) Zero
(b) High
(c) Low
(d) None of these

Question. When the values of two variables move in the same direction, correlation is said to be ……………………….
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Question. When the values of two variables move in the opposite directions, correlation is said to be ……………………….
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Question. Scatter diagram is also called ………………….
(a) Dot chart
(b) Correlation graph
(c) Both a and b
(d) None of these

Question. Numerical measure of correlation is called …………………
(a) Coefficient of correlation
(b) Coefficient of determination
(c) Coefficient of non-determination
(d) Coefficient of regression

Question. A high degree of +ve correlation between availability of rainfall and weight of weight of people is:
(a) A meaningless correlation
(b) A spurious correlation
(c) A nonsense correlation
(d) All of the above

Question. The control charts used for the number of defects per unit is:
(a) Range chart
(b) P-chart
(c) C-chart
(d) Mean chart

Question. Runs test was designed by ………………………..
(a) Kruskal and Wallis
(b) Kolmogrov and Smirnov
(c) Wald wolfowitz
(d) Karl Pearson

Question. If the ratio of change in one variable is equal to the ratio of change in the other variable, then the correlation is said to be …………………
(a) Linear
(b) Non-linear
(c) Curvilinear
(d) None of these

Question. The techniques which provide the decision maker a systematic and powerful means of analysis to explore policies for achieving predetermined goals are called…………………….
(a) Correlation techniques
(b) Mathematical techniques
(c) Quantitative techniques
(d) None of the above

Question. Correlation analysis is a …………………………
(a) Univariate analysis
(b) Bivariate analysis
(c) Multivariate analysis
(d) Both b and c

Question. If change in one variable results a corresponding change in the other variable, then the variables are…………………….
(a) Correlated
(b) Not correlated
(c) Any of the above
(d) None of the above

Question. Pearsonian correlation coefficient if denoted by the symbol ……………
(a) K
(b) r
(c) R
(d) None of these

Question. If all the points of a dot chart lie on a straight line vertical to the X-axis, then coefficient of correlation is ……………….
(a) 0
(b) +1
(c) –1
(d) None of these

Question. The rank correlation coefficient is always……………………….
(a) + 1
(b) – 1
(c) 0
(d) Between + 1 and – 1

Question. If r is the simple correlation coefficient, the quantity r² is known as ……………….
(a) Coefficient of determination
(b) Coefficient of non-determination
(c) Coefficient of alienation
(d) None of these

Question. If all the points of a dot chart lie on a straight line parallel to the X-axis, it denotes ……………………………of correlation.
(a) High degree
(b) Low degree
(c) Moderate degree
(d) Absence

Question. If dots are lying on a scatter diagram in a haphazard manner, then r = ………………….
(a) 0
(b) +1
(c) –1
(d) None of these

Question. When the amount of change in one variable leads to a constant ratio of change in the other variable, then correlation is said to be …………………….
(a) Linear
(b) Non-linear
(c) Positive
(d) Negative

Question. ………………………attempts to determine the degree of relationship between variables.
(a) Regression analysis
(b) Correlation analysis
(c) Inferential analysis
(d) None of these

Question. Non-linear correlation is also called………………………………
(a) Non-curvy linear correlation
(b) Curvy linear correlation
(c) Zero correlation
(d) None of these

Question. The unit of Coefficient of correlation is ……………………
(a) Percentage
(b) Ratio
(c) Same unit of the data
(d) No unit

Question. Product moment correlation method is also called ……………………
(a) Rank correlation
(b) Pearsonian correlation
(c) Concurrent deviation
(d) None of these

Question. Coefficient of correlation explains:
(a) Concentration
(b) Relation
(c) Dispersion
(d) Asymmetry

Question. Coefficient of correlation lies between:
(a) 0 and +1
(b) 0 and –1
(c) –1 and +1
(d) – 3 and +3

Question. Spearman’s Rank Correlation Coefficient is usually denoted by………………..
(a) k
(b) r
(c) S
(d) R

Question. Probable error is used to:
(a) Test the reliability of correlation coefficient
(b) Measure the error in correlation coefficient
(c) Both a an b
(d) None of these

Question. If coefficient of correlation is more than …………….of its P E, correlation is significant.
(a) 2 times
(b) 5 times
(c) 6 times
(d) 10 times

Question. Correlation analysis between one dependent variable with one independent variable by keeping the other independent variables as constant is called…………………
(a) Partial correlation
(b) Multiple correlation
(c) Nonsense correlation
(d) Simple correlation

Question. The –ve sign of correlation coefficient between X and Y indicates………………………..
(a) X decreasing, Y increasing
(b) X increasing, Y decreasing
(c) Any of the above
(d) There is no change in X and Y

Question. Coefficient of correlation explains …………………….of the relationship between two variables.
(a) Degree
(b) Direction
(c) Both of the above
(d) None of the above

Question. Study of correlation among three or more variables simultaneously is called…………
(a) Partial correlation
(b) Multiple correlation
(c) Nonsense correlation
(d) Simple correlation

Question. If r = 0.8, coefficient of determination is……………………………….
(a) 80%
(b) 8%
(c) 64%
(d) 0.8%

Question. For perfect correlation, the coefficient of correlation should be ……………………..
(a) ± 1
(b) + 1
(c) – 1
(d) 0

Question. Rank correlation coefficient was discovered by………………………………
(a) Fisher
(b) Spearman
(c) Karl Pearson
(d) Bowley

Question. If r is the simple correlation coefficient, the quantity 1 — r² is known as ……………….
(a) Coefficient of determination
(b) Coefficient of non-determination
(c) Coefficient of alienation
(d) None of these

Question. The term regression was first used by……………………..
(a) Karl Pearson
(b) Spearman
(c) R A Fisher
(d) Francis Galton

Question. Correlation analysis between two sets of data only is called………………..
(a) Partial correlation
(b) Multiple correlation
(c) Nonsense correlation
(d) Simple correlation

Question. The point of intersection of two regression lines is……………………..
(a) (0,0)
(b) (1,1)
(c) (x,y)
(d) (x̄, ӯ)

Question. ………………..refers to analysis of average relationship between two variables to provide mechanism for prediction.
(a) Correlation
(b) Regression
(c) Standard error
(d) None of these

Question. If there are two variables, there can be at most…………………………. number of regression lines.
(a) One
(b) Two
(c) Three
(d) Infinite

Question. If the regression line is X on Y, then the variable X is known as……………………..
(a) Dependent variable
(b) Independent variable
(c) Bothe a and b
(d) None of the above

Question. If the regression line is Y on X, then the variable X is known as……………………..
(a) Dependent variable
(b) Independent variable
(c) Both a and b
(d) None of the above

Question. In correlation analysis, Probable Error = …………………… x 0.6745
(a) Standard deviation
(b) Standard error
(c) Coefficient of correlation
(d) None of these

Question. Coefficient of concurrent deviation depends on …………………..
(a) The signs of the deviations
(b) The magnitude of the deviations
(c) Bothe a and b
(d) None of these

Question. If r = ± 1, the two regression lines are………………………….
(a) Coincident
(b) Parallel
(c) Perpendicular to each other
(d) None of these

Question. If r = 1, the angle between the two regression lines is…………………….
(a) Ninety degree
(b) Thirty degree
(c) Zero degree
(d) Sixty degree

Question. Type I error is denoted by………………………
(a) Alpha
(b) Beta
(c) Gamma
(d) None of these

Question. Type II error is denoted by………………………………
(a) Alpha
(b) Beta
(c) Gamma
(d) None of these

Question. The level of probability of accepting a true null hypothesis is called…………………..
(a) Degree of freedom
(b) Level of significance
(c) Level of confidence
(d) Degree of party

Question. If r = 0, the two regression lines are:
(a) Coincident
(b) Parallel
(c) Perpendicular to each other
(d) None of these

Question. The property that both the regression coefficients and correlation coefficient have same signs is called………………………….
(a) Fundamental property
(b) Magnitude property
(c) Signature property
(d) None of these

Question. If the regression line is Y on X, then the variable X is known as……………………..
(a) Independent variable
(b) Explanatory variable
(c) Regressor
(d) All the above

Question. Regression line is also called…………………………..
(a) Estimating equation
(b) Prediction equation
(c) Line of average relationship
(d) All the above

Question. If the regression line is X on Y, then the variable X is known as……………………..
(a) Dependent variable
(b) Explained variable
(c) Both a and b
(d) Regressor

Question. The property that b_yx > 1 implies that b_xy < 1 is known as …………………
(a) Fundamental property
(b) Magnitude property
(c) Signature property
(d) None of these

Question. The G M of two regression coefficients byx and bxy is equal to ……………………..
(a) r
(b) r²
(c) 1 – r²
(d) None of these

Question. b_yx is the regression coefficient of the regression equation…………………
(a) Y on X
(b) X on Y
(c) Either a or b
(d) None of these

Question. If all the points of a scatter diagram lie on a straight line falling from left upper corner to the right bottom corner, the correlation is called………………
(a) Zero correlation
(b) High degree of positive correlation
(c) Perfect negative correlation
(d) Perfect positive correlation

Question. If all the dots of a scatter diagram lie on a straight line falling from left bottom corner to the right upper corner, the correlation is called……………..
(a) Zero correlation
(b) High degree of positive correlation
(c) Perfect negative correlation
(d) Perfect positive correlation

Question. b_xy is the regression coefficient of the regression equation…………………
(a) Y on X
(b) X on Y
(c) Either a or b
(d) None of these

Question. The idea of testing of hypothesis was first set forth by ……………………..
(a) R A Fisher
(b) J Neyman
(c) E L Lehman
(d) A Wald

Question. If X and Y are independent, the property b_yx = b_xy = 0 is called ……………….
(a) Fundamental property
(b) Magnitude property
(c) Mean property
(d) Independence property

Question. The Correlation coefficient between two variables is the ……………………… of their regression coefficients.
(a) Arithmetic mean
(b) Geometric mean
(c) Harmonic mean
(d) None of these

Question. If the correlation coefficient between two variables, X and Y, is negative, then the regression coefficient of Y on X is………………………..
(a) Positive
(b) Negative
(c) Not certain
(d) None of these

Question. By testing of hypothesis, we mean:
(a) A significant procedure in Statistics
(b) A method of making a significant statement
(c) A rule for accepting or rejecting hypothesis
(d) A significant estimation of a problem.

Question. An alternative hypothesis is denoted by………………………
(a) H₀
(b) H₁
(c) AH
(d) None of these

Question. If b_xy and b_yx are two regression coefficients, they have:
(a) Same signs
(b) Opposite signs
(c) Either a or b
(d) None of the above.

Question. If b_yx > 1, then b_xy is:
(a) Greater than one
(b) Less than one
(c) Equal to one
(d) Equal to zero

Question. If X and Y are independent, the value of b_yx is equal to ……………………
(a) Zero
(b) One
(c) Infinity
(d) Any positive value

Question. Whether a test is one sided or two sided, depends on……………………
(a) Simple hypothesis
(b) Composite hypothesis
(c) Null hypothesis
(d) Alternative hypothesis

Question. A wrong decision about null hypothesis leads to:
(a) One kind of error
(b) Two kinds of errors
(c) Three kinds of errors
(d) Four kinds of errors

Question. Type II error means…………………………
(a) Accepting a true hypothesis
(b) Rejecting a true hypothesis
(c) Accepting a wrong hypothesis
(d) Rejecting a wrong hypothesis

Question. The probability of rejecting a true null hypothesis is called………………….
(a) Degree of freedom
(b) Level of significance
(c) Level of confidence
(d) None of these

Question. When the expected frequencies and observed frequencies completely coincide, the chi-square value will be …………………………
(a) + 1
(b) – 1
(c) 0
(d) None of these

Question. If the discrepancy between observed and expected frequencies are greater, ……………………. will be the chi-square value.
(a) Greater
(b) Smaller
(c) Zero
(d) None of these

Question. 1 – Level of confidence =………………………..
(a) Level of significance
(b) Degree of freedom
(c) Either a or b
(d) None of these

Question. While testing a hypothesis, if level of significance is not mentioned, we take ………………. level of significance.
(a) 1%
(b) 2%
(c) 5%
(d) 10%

Question. Power of a test is related to ……………………
(a) Type I error
(b) Type II error
(c) Both a and b
(d) None of these

Question. Level of significance is the probability of…………………………..
(a) Type I error
(b) Type II error
(c) Both a and b
(d) None of these

Question. Which type of error is more severe error:
(a) Type I error
(b) Type II error
(c) Both a and b
(d) None of these

Question. A sample is treated as large sample, when its size is………………………..
(a) More than 100
(b) More than 75
(c) More than 50
(d) More than 30

Question. ……………refers to the number of independent observations which is obtained by subtracting the number of constraints from the total number of observations.
(a) Sample size
(b) Degree of freedom
(c) Level of significance
(d) Level of confidence

Question. When sample is small,………………….. test is applied.
(a) t-test
(b) Z test
(c) F test
(d) None of these

Question. To test a hypothesis about proportions of items in a class, the usual test is…………..
(a) t-test
(b) Z- test
(c) F test
(d) Sign test

Question. The geometric mean of the two regression coefficient, b_xy and b_yx is equal to:
(a) r
(b) r²
(c) 1
(d) None of the above

Question. In a correlation analysis, if r= 0, then we may say that there is ……………… between variables.
(a) No correlation
(b) Linear correlation
(c) Perfect correlation
(d) none of these

Question. If ‘r’ is the correlation coefficient between two variables, then:
(a) 0 < r < 1
(b) – 1 ≤ r ≤ 1
(c) r ≥ 0
(d) r ≤ 0

Question. Student’s t-test is applicable when:
(a) The values of the variate are independent
(b) The variable is distributed normally
(c) The sample is small
(d) All the above

Question. Testing of hypotheses H_o : μ = 45 vs. H₁ : μ > 45 when the population standard deviation is known, the appropriate test is:
(a) t-test
(b) Z test
(c) Chi-square test
(d) F test

Question. Testing of hypotheses H_o : μ = 85 vs. H₁ : μ > 85, is a ……………….test.
(a) One sided left tailed test
(b) One sided right tailed test
(c) Two tailed test
(d) None of these

Question. Testing of hypothesis and ………………….are the two branches of statistical inference.
(a) Statistical analysis
(b) Probability
(c) Correlation analysis
(d) Estimation

Question. ……………………. is the original hypothesis
(a) Null hypothesis
(b) Alternative hypothesis
(c) Either a or b
(d) None of these

Question. A null hypothesis is denoted by………………………
(a) H₀
(b) H₁
(c) NH
(d) None of these

Question. Testing of hypotheses H_o : μ = 65 vs. H₁ : μ < 65, is a ……………….test.
(a) One sided left tailed test
(b) One sided right tailed test
(c) Two tailed test
(d) None of these

Question. Testing of hypotheses H_o : μ = 65 vs. H₁ : μ ≠ 65, is a ……………….test.
(a) One sided left tailed test
(b) One sided right tailed test
(c) Two tailed test
(d) None of these

Question. Total number of observations – number of constraints =………………….
(a) Level of significance
(b) Degree of freedom
(c) Level of confidence
(d) Sample size

Question. Accepting a null hypothesis when it is false is called………………………….
(a) Type I error
(b) Type II error
(c) Probable error
(d) Standard error

Question. Accepting a null hypothesis when it is true is called………………………….
(a) Type I error
(b) Type II error
(c) Probable error
(d) No error

Question. Student’s t-test was designed by ……………………….
(a) R A Fisher
(b) Wilcoxon
(c) Wald wolfowitz
(d) W S Gosset

Question. Degrees of freedom for Chi-squre test in case of contingency table of order (2×2) is:
(a) 4
(b) 3
(c) 2
(d) 1

Question. Which of the following is a non-parametric test?
(a) F-test
(b) Z-test
(c) Wilcoxon test
(d) All of the above

Question. Regression coefficient is independent of………………………
(a) Origin
(b) Scale
(c) Both a and b
(d) Neither origin nor scale

Question. The magnitude of the difference between observed frequencies and expected frequencies is called …………………..
(a) F value
(b) Z value
(c) t value
(d) Chi-square value

Question. Calculated value of chi-square is always……………………
(a) Positive
(b) Negative
(c) Zero
(d) None of these

Question. The range of F ratio is ………………………………….
(a) – 1 to + 1
(b) – ∞ to ∞
(c) 0 to ∞
(d) 0 to 1

Question. While computing F ratio, customarily, the larger variance is taken as …………………
(a) Denominator
(b) Numerator
(c) Either way
(d) None of these

Question. Chi-square test was first used by ………………………….
(a) R A Fisher
(b) William Gosset
(c) James Bernoulli
(d) Karl Pearson

Question. While applying chi-square test, the frequency in any cell should not be ………………….
(a) More than 5
(b) Less than 5
(c) More than 10
(d) Less than 10

Question. Analysis of variance utilises………………
(a) F test
(b) Chi square test
(c) Z test
(d) t test

Question. If one regression coefficient is negative, the other is ………………………….
(a) 0
(b) – ve
(c) +ve
(d) Either a or b

Question. Arithmetic mean of the two regression coefficients is:
(a) Equal to correlation coefficient
(b) Greater than correlation coefficient
(c) Less than correlation coefficient
(d) Equal to or greater than correlation coefficient

Question. In one way ANOVA, the variances are:
(a) Within samples
(b) Between samples
(c) Total
(d) All

Question. The technique of analysis of variance was developed by ………………………..
(a) Frank Wilcoxon
(b) Karl Pearson
(c) R A Fisher
(d) Kolmogrov

Question. ……………………is the simplest and most widely used non-parametric test
(a) Sign test
(b) K-S test
(c) Chi-square tst
(d) Wilcoxon matched paired test

Question. What type of chart will be used to plot the number of defective in the output of any process?
(a) x̄ chart
(b) R chart
(c) C chart
(d) P chart

Question. Degrees of freedom for Chi-squre test in case of contingency table of order (4×3) is:
(a) 4
(b) 3
(c) 6
(d) 7

Question. Degrees of freedom for Chi-squre test in case of contingency table of order (5×5) is:
(a) 25
(b) 16
(c) 10
(d) Infinity

Question. Process control is carried out:
(a) Before production
(b) During production
(c) After production
(d) All of the above

Question. Non-parametric test is :
(a) Distribution free test
(b) Not concerned with parameter
(c) Does not depend on the particular form of the distribution
(d) None of these

Question. …………………….tests follow assumptions about population parameters.
(a) Parametric
(b) Non-parametric
(c) One-tailed
(d) Two-tailed

Question. The control charts used to monitor attributes is……………………….
(a) Range chart
(b) P-chart
(c) C-chart
(d) All of the above

Question. The control charts used for the fraction of defective items in a sample is……………………….
(a) Range chart
(b) P-chart
(c) C-chart
(d) Mean chart

Question. Which one of the following is a non-parametric test?
(a) F test
(b) Z test
(c) t test
(d) Wilcoxon test

Question. Control charts are also termed as………………………….
(a) Shewart charts
(b) Process behaviour chart
(c) Both a and b
(d) None of these

Question. ……………………is user for testing goodness of fit.
(a) Wilcoxon test
(b) Sign test
(c) K-S Test
(d) Chi-square test

Question. Z test was designed by ………………………………….
(a) R A Fisher
(b) Wilcoxon
(c) Wald wolfowitz
(d) W S Gosset

Question. Z test was designed by …………………………………
(a) R A Fisher
(b) Wilcoxon
(c) Wald wolfowitz
(d) W S Gosset

Question. The Chi-squre quantity ranges from …………………… to ………………………
(a) – 1 to + 1
(b) – ∞ to ∞
(c) 0 to ∞
(d) 0 to 1

Question. The dividing lines between random and non-random deviations from mean of the distribution are known as ……………………..
(a) Upper Control Limit
(b) Lower Control Limit
(c) Control Limits
(d) Two sigma limit

Question. The control charts used to monitor variable is………………………
(a) Range chart
(b) P-chart
(c) C-chart
(d) All of the above