# Statistics in Forecasting and Theory Testing

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## 30 Questions

### What is a key advantage of statistical methods according to Bowley's statement?

They are more accurate than a casual observer's impression

### What is the purpose of testing a hypothesis in statistics?

To test the validity of a statement

### What type of facts are not studied in statistics?

Qualitative facts

### What is the limitation of statistics according to Newsholme?

It has several limitations that cannot be overcome

### What is an example of a phenomenon that can be expressed indirectly in numerical terms?

Intelligence of students

### What is the main purpose of statistical methods?

To forecast for future

### What is the formula to calculate the first quartile?

Q1=l1+ {(N/4 cf)*h} /f

38.12

45.53

### Why is the cumulative frequency distribution used in calculating quartiles?

To facilitate the location of quartile values

1000

45.53

∑(fx) / N

### Why is the arithmetic mean affected by extreme values?

Because it is highly sensitive to extreme values

### What is the advantage of the arithmetic mean?

It is easy to understand and calculate

∑(X*f) / N

### What is the disadvantage of the arithmetic mean when dealing with open-ended intervals?

It is not defined for open-ended intervals

### What is the purpose of finding the midpoint of each class in grouped data?

To treat it as the representative average value of that class

### What is the primary concern of statistics in economics?

To study the relationship between two variables

### What can be inferred from the relationship between low agricultural productivity and low rainfall?

One causes the other

### Why can't the relationship between the arrival of migratory birds and birth rates be given a cause and effect interpretation?

Because it's a coincidental relationship

Coincidental

### Why might there be a relationship between brisk sale of ice-creams and a higher number of deaths by drowning?

Because both are affected by a third variable (temperature)

### What can be a reason for observing a relationship between two variables even if there is no direct connection between them?

A third variable is affecting both

### What is the relationship between the years of schooling of farmers and the annual yield per acre?

They are positively correlated

42

### What is the formula used to calculate the value of r?

r = ΣXY / (σx * σy)

### What is the importance of farmers' education according to the given example?

It has a positive impact on the annual yield per acre

38

### Why is the value of r large in the given example?

Because the years of schooling of farmers are positively correlated with the annual yield per acre

Learn how statistical methods are used in forecasting and testing hypotheses to develop new theories. Understand the importance of statistical estimates in making accurate predictions.

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