If the cost of living index number is 250, it means that compared to base year, the cost of living has: MCQ with Answer and Explanation

If the cost of living index number is 250, it means that compared to base year, the cost of living has:

A. Increased by 150%

B. Increased by 250%

C. Become 2.5 times

D. Decreased by 150%

Answer: Option A

Index 250 indicates a 150% increase (250-100).

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

Which measure of central tendency is most affected by extreme values?

A. Median

B. Arithmetic mean

C. Mode

D. Geometric mean

Correct Answer: Option B

Explanation:
The arithmetic mean uses all values and is pulled towards outliers.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If every observation in a dataset is doubled, the arithmetic mean:

A. Remains unchanged

B. Is also doubled

C. Increases by 2

D. Becomes half

Correct Answer: Option B

Explanation:
Mean is affected by change of scale; multiplying by 2 scales the mean by 2.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

In a Poisson distribution, the probability of zero successes is e^{-λ}. If λ=3, this probability is approximately:

A. 0.10

B. 0.15

C. 0.05

D. 0.20

Correct Answer: Option C

Explanation:
e^{-3} ≈ 0.0498 ≈ 0.05.

This question belongs to: Accountancy and Statistics Statistics