For perfect positive association between attributes A and B, we expect: MCQ with Answer and Explanation

For perfect positive association between attributes A and B, we expect:

A. (αB) = 0

B. Both (Aβ) and (αB) = 0

C. (AB) = 0

D. (Aβ) = 0

Answer: Option B

Perfect positive association means all A's are B's and all B's are A's, so no A without B and no B without A.

This question belongs to: Accountancy and Statistics Statistics

No comments yet. Be the first to start the discussion!

Question #1 Report Error

Three machines produce 60%, 30%, 10% of items with defect rates 2%, 3%, 4%. If an item is defective, probability it came from the third machine is:

A. 0.25

B. 0.10

C. 0.16

D. 0.04

Correct Answer: Option C

Explanation:
P(D) = 0.6×0.02 + 0.3×0.03 + 0.1×0.04 = 0.012+0.009+0.004=0.025. P(M3|D) = 0.004/0.025 = 0.16.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

The measure that divides the data into 100 equal parts is:

A. Median

B. Decile

C. Percentile

D. Quartile

Correct Answer: Option C

Explanation:
Percentiles partition data into 100 parts.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

Which average is most appropriate for calculating average of ratios like price-earnings ratios?

A. Harmonic mean

B. Mode

C. Median

D. Arithmetic mean

Correct Answer: Option A

Explanation:
When averaging rates where numerators are same, harmonic mean is appropriate.

This question belongs to: Accountancy and Statistics Statistics