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

## Answer

C

**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

## Answer

B

**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

## Answer

C

**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

## Answer

B

**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

## Answer

C

**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

## Answer

D

**Question. Scatter diagram is also called ………………….**

(a) Dot chart

(b) Correlation graph

(c) Both a and b

(d) None of these

## Answer

A

**Question. Numerical measure of correlation is called …………………**

(a) Coefficient of correlation

(b) Coefficient of determination

(c) Coefficient of non-determination

(d) Coefficient of regression

## Answer

A

**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

## Answer

D

**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

## Answer

C

**Question. Runs test was designed by ………………………..**

(a) Kruskal and Wallis

(b) Kolmogrov and Smirnov

(c) Wald wolfowitz

(d) Karl Pearson

## Answer

C

**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

## Answer

A

**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

## Answer

C

**Question. Correlation analysis is a …………………………**

(a) Univariate analysis

(b) Bivariate analysis

(c) Multivariate analysis

(d) Both b and c

## Answer

D

**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

## Answer

A

**Question. Pearsonian correlation coefficient if denoted by the symbol ……………**

(a) K

(b) r

(c) R

(d) None of these

## Answer

C

**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

## Answer

A

**Question. The rank correlation coefficient is always……………………….**

(a) + 1

(b) – 1

(c) 0

(d) Between + 1 and – 1

## Answer

D

**Question. If r is the simple correlation coefficient, the quantity r ^{2} is known as ……………….**

(a) Coefficient of determination

(b) Coefficient of non-determination

(c) Coefficient of alienation

(d) None of these

## Answer

A

**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

## Answer

D

**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

## Answer

B

**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

## Answer

A

**Question. ………………………attempts to determine the degree of relationship between variables.**

(a) Regression analysis

(b) Correlation analysis

(c) Inferential analysis

(d) None of these

## Answer

B

**Question. Non-linear correlation is also called………………………………**

(a) Non-curvy linear correlation

(b) Curvy linear correlation

(c) Zero correlation

(d) None of these

## Answer

B

**Question. The unit of Coefficient of correlation is ……………………**

(a) Percentage

(b) Ratio

(c) Same unit of the data

(d) No unit

## Answer

D

**Question. Product moment correlation method is also called ……………………**

(a) Rank correlation

(b) Pearsonian correlation

(c) Concurrent deviation

(d) None of these

## Answer

B

**Question. Coefficient of correlation explains:**

(a) Concentration

(b) Relation

(c) Dispersion

(d) Asymmetry

## Answer

B

**Question. Coefficient of correlation lies between:**

(a) 0 and +1

(b) 0 and –1

(c) –1 and +1

(d) – 3 and +3

## Answer

C

**Question. Spearman’s Rank Correlation Coefficient is usually denoted by………………..**

(a) k

(b) r

(c) S

(d) R

## Answer

D

**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

## Answer

A

**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

## Answer

C

**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

## Answer

A

**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

## Answer

C

**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

## Answer

C

**Question. Study of correlation among three or more variables simultaneously is called…………**

(a) Partial correlation

(b) Multiple correlation

(c) Nonsense correlation

(d) Simple correlation

## Answer

B

**Question. If r = 0.8, coefficient of determination is……………………………….**

(a) 80%

(b) 8%

(c) 64%

(d) 0.8%

## Answer

C

**Question. For perfect correlation, the coefficient of correlation should be ……………………..**

(a) ± 1

(b) + 1

(c) – 1

(d) 0

## Answer

A

**Question. Rank correlation coefficient was discovered by………………………………**

(a) Fisher

(b) Spearman

(c) Karl Pearson

(d) Bowley

## Answer

B

**Question. If r is the simple correlation coefficient, the quantity 1 — r ^{2} is known as ……………….**

(a) Coefficient of determination

(b) Coefficient of non-determination

(c) Coefficient of alienation

(d) None of these

## Answer

B

**Question. The term regression was first used by……………………..**

(a) Karl Pearson

(b) Spearman

(c) R A Fisher

(d) Francis Galton

## Answer

D

**Question. Correlation analysis between two sets of data only is called………………..**

(a) Partial correlation

(b) Multiple correlation

(c) Nonsense correlation

(d) Simple correlation

## Answer

D

**Question. The point of intersection of two regression lines is……………………..**

(a) (0,0)

(b) (1,1)

(c) (x,y)

(d) (x̄, ӯ)

## Answer

D

**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

## Answer

B

**Question. If there are two variables, there can be at most…………………………. number of regression lines.**

(a) One

(b) Two

(c) Three

(d) Infinite

## Answer

B

**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

## Answer

A

**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

## Answer

B

**Question. In correlation analysis, Probable Error = …………………… x 0.6745**

(a) Standard deviation

(b) Standard error

(c) Coefficient of correlation

(d) None of these

## Answer

B

**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

## Answer

A

**Question. If r = ± 1, the two regression lines are………………………….**

(a) Coincident

(b) Parallel

(c) Perpendicular to each other

(d) None of these

## Answer

A

**Question. If r = 1, the angle between the two regression lines is…………………….**

(a) Ninety degree

(b) Thirty degree

(c) Zero degree

(d) Sixty degree

## Answer

C

**Question. Type I error is denoted by………………………**

(a) Alpha

(b) Beta

(c) Gamma

(d) None of these

## Answer

A

**Question. Type II error is denoted by………………………………**

(a) Alpha

(b) Beta

(c) Gamma

(d) None of these

## Answer

B

**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

## Answer

C

**Question. If r = 0, the two regression lines are:**

(a) Coincident

(b) Parallel

(c) Perpendicular to each other

(d) None of these

## Answer

C

**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

## Answer

C

**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

## Answer

D

**Question. Regression line is also called…………………………..**

(a) Estimating equation

(b) Prediction equation

(c) Line of average relationship

(d) All the above

## Answer

D

**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

## Answer

C

**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

## Answer

B

**Question. The G M of two regression coefficients byx and bxy is equal to ……………………..**

(a) r

(b) r^{2}

(c) 1 – r^{2}

(d) None of these

## Answer

A

**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

## Answer

B

**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

## Answer

C

**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

## Answer

D

**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

## Answer

A

**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

## Answer

B

**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

## Answer

D

**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

## Answer

B

**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

## Answer

B

**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.

## Answer

C

**Question. An alternative hypothesis is denoted by………………………**

(a) H_{0}

(b) H_{1}

(c) AH

(d) None of these

## Answer

B

**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.

## Answer

A

**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

## Answer

B

**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

## Answer

A

**Question. Whether a test is one sided or two sided, depends on……………………**

(a) Simple hypothesis

(b) Composite hypothesis

(c) Null hypothesis

(d) Alternative hypothesis

## Answer

D

**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

## Answer

B

**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

## Answer

C

**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

## Answer

B

**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

## Answer

C

**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

## Answer

A

**Question. 1 – Level of confidence =………………………..**

(a) Level of significance

(b) Degree of freedom

(c) Either a or b

(d) None of these

## Answer

A

**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%

## Answer

C

**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

## Answer

B

**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

## Answer

A

**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

## Answer

B

**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

## Answer

D

**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

## Answer

B

**Question. When sample is small,………………….. test is applied.**

(a) t-test

(b) Z test

(c) F test

(d) None of these

## Answer

A

**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

## Answer

B

**Question. The geometric mean of the two regression coefficient, b _{xy} and b_{yx} is equal to:**

(a) r

(b) r

^{2}

(c) 1

(d) None of the above

## Answer

A

**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

## Answer

A

**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

## Answer

B

**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

## Answer

D

**Question. Testing of hypotheses H _{o} : μ = 45 vs. H_{1} : 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

## Answer

B

**Question. Testing of hypotheses H _{o} : μ = 85 vs. H_{1} : 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

## Answer

B

**Question. Testing of hypothesis and ………………….are the two branches of statistical inference.**

(a) Statistical analysis

(b) Probability

(c) Correlation analysis

(d) Estimation

## Answer

D

**Question. ……………………. is the original hypothesis**

(a) Null hypothesis

(b) Alternative hypothesis

(c) Either a or b

(d) None of these

## Answer

A

**Question. A null hypothesis is denoted by………………………**

(a) H_{0}

(b) H_{1}

(c) NH

(d) None of these

## Answer

A

**Question. Testing of hypotheses H _{o} : μ = 65 vs. H_{1} : 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

## Answer

A

**Question. Testing of hypotheses H _{o} : μ = 65 vs. H_{1} : 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

## Answer

C

**Question. Total number of observations – number of constraints =………………….**

(a) Level of significance

(b) Degree of freedom

(c) Level of confidence

(d) Sample size

## Answer

B

**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

## Answer

B

**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

## Answer

D

**Question. Student’s t-test was designed by ……………………….**

(a) R A Fisher

(b) Wilcoxon

(c) Wald wolfowitz

(d) W S Gosset

## Answer

D

**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

## Answer

D

**Question. Which of the following is a non-parametric test?**

(a) F-test

(b) Z-test

(c) Wilcoxon test

(d) All of the above

## Answer

C

**Question. Regression coefficient is independent of………………………**

(a) Origin

(b) Scale

(c) Both a and b

(d) Neither origin nor scale

## Answer

A

**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

## Answer

D

**Question. Calculated value of chi-square is always……………………**

(a) Positive

(b) Negative

(c) Zero

(d) None of these

## Answer

A

**Question. The range of F ratio is ………………………………….**

(a) – 1 to + 1

(b) – ∞ to ∞

(c) 0 to ∞

(d) 0 to 1

## Answer

C

**Question. While computing F ratio, customarily, the larger variance is taken as …………………**

(a) Denominator

(b) Numerator

(c) Either way

(d) None of these

## Answer

B

**Question. Chi-square test was first used by ………………………….**

(a) R A Fisher

(b) William Gosset

(c) James Bernoulli

(d) Karl Pearson

## Answer

D

**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

## Answer

B

**Question. Analysis of variance utilises………………**

(a) F test

(b) Chi square test

(c) Z test

(d) t test

## Answer

A

**Question. If one regression coefficient is negative, the other is ………………………….**

(a) 0

(b) – ve

(c) +ve

(d) Either a or b

## Answer

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

## Answer

B

**Question. In one way ANOVA, the variances are:**

(a) Within samples

(b) Between samples

(c) Total

(d) All

## Answer

D

**Question. The technique of analysis of variance was developed by ………………………..**

(a) Frank Wilcoxon

(b) Karl Pearson

(c) R A Fisher

(d) Kolmogrov

## Answer

C

**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

## Answer

C

**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

## Answer

D

**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

## Answer

C

**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

## Answer

B

**Question. Process control is carried out:**

(a) Before production

(b) During production

(c) After production

(d) All of the above

## Answer

B

**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

## Answer

D

**Question. …………………….tests follow assumptions about population parameters.**

(a) Parametric

(b) Non-parametric

(c) One-tailed

(d) Two-tailed

## Answer

A

**Question. The control charts used to monitor attributes is……………………….**

(a) Range chart

(b) P-chart

(c) C-chart

(d) All of the above

## Answer

B

**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

## Answer

B

**Question. Which one of the following is a non-parametric test?**

(a) F test

(b) Z test

(c) t test

(d) Wilcoxon test

## Answer

A

**Question. Control charts are also termed as………………………….**

(a) Shewart charts

(b) Process behaviour chart

(c) Both a and b

(d) None of these

## Answer

C

**Question. ……………………is user for testing goodness of fit.**

(a) Wilcoxon test

(b) Sign test

(c) K-S Test

(d) Chi-square test

## Answer

D

**Question. Z test was designed by ………………………………….**

(a) R A Fisher

(b) Wilcoxon

(c) Wald wolfowitz

(d) W S Gosset

## Answer

A

**Question. Z test was designed by …………………………………**

(a) R A Fisher

(b) Wilcoxon

(c) Wald wolfowitz

(d) W S Gosset

## Answer

A

**Question. The Chi-squre quantity ranges from …………………… to ………………………**

(a) – 1 to + 1

(b) – ∞ to ∞

(c) 0 to ∞

(d) 0 to 1

## Answer

C

**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

## Answer

C

**Question. The control charts used to monitor variable is………………………**

(a) Range chart

(b) P-chart

(c) C-chart

(d) All of the above

## Answer

A