Which measure of central tendency is most suitable for qualitative ordinal data like intelligence rankings? MCQ with Answer and Explanation

Which measure of central tendency is most suitable for qualitative ordinal data like intelligence rankings?

A. Geometric mean

B. Mean

C. Mode

D. Median

Answer: Option D

Ordinal data can be ranked; the median is the appropriate measure as it does not require numerical differences.

This question belongs to: Accountancy and Statistics Statistics

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

Question #1 Report Error

A random variable X takes values 0,1,2 with probabilities 0.3,0.5,0.2. The expected value E(X) is:

A. 1.1

B. 0.9

C. 0.8

D. 1.0

Correct Answer: Option B

Explanation:
E(X) = 0×0.3 + 1×0.5 + 2×0.2 = 0 + 0.5 + 0.4 = 0.9.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If two attributes have perfect positive association, then:

A. (AB) = 0

B. (A) = (B)

C. (AB) = (A) = (B)

D. (αβ) = 0

Correct Answer: Option C

Explanation:
Perfect positive association means all A's are B's and all B's are A's, so (AB) equals both marginals.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The Paasche price index tends to ______ the true increase in prices if consumers substitute away from goods that have become more expensive.

A. Exactly measure

B. Understate

C. Overstate

D. Not measure

Correct Answer: Option B

Explanation:
Paasche uses current period quantities; substitution away from expensive items reduces their weight, leading to understatement.

This question belongs to: Accountancy and Statistics Statistics