Statistics in Forecasting and Theory Testing

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

They are only used for testing hypotheses

They are always 100% accurate

They provide a casual observer's impression

They are more accurate than a casual observer's impression (correct)

What is the purpose of testing a hypothesis in statistics?

To discover new theories

To reject all possible outcomes

To test the validity of a statement (correct)

To prove a theory

What type of facts are not studied in statistics?

Theoretical facts

Qualitative facts (correct)

Hypotheses

Numerical facts

What is the limitation of statistics according to Newsholme?

It has several limitations that cannot be overcome Signup and view all the answers

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

Intelligence of students Signup and view all the answers

What is the main purpose of statistical methods?

To forecast for future Signup and view all the answers

What is the formula to calculate the first quartile?

Q1=l1+ {(N/4 cf)*h} /f Signup and view all the answers

What is the value of the first quartile (Q1) in the given data?

38.12 Signup and view all the answers

What is the value of the third quartile (Q3) in the given data?

45.53 Signup and view all the answers

Why is the cumulative frequency distribution used in calculating quartiles?

To facilitate the location of quartile values Signup and view all the answers

What is the total number of workers in the industrial establishment?

1000 Signup and view all the answers

Based on the given data, what length of study-table would you recommend to the manufacturer?

45.53 Signup and view all the answers

What is the formula to calculate the arithmetic mean for discrete data?

∑(fx) / N Signup and view all the answers

Why is the arithmetic mean affected by extreme values?

Because it is highly sensitive to extreme values Signup and view all the answers

What is the advantage of the arithmetic mean?

It is easy to understand and calculate Signup and view all the answers

What is the formula to calculate the arithmetic mean for grouped data?

∑(X*f) / N Signup and view all the answers

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

It is not defined for open-ended intervals Signup and view all the answers

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 Signup and view all the answers

What is the primary concern of statistics in economics?

To study the relationship between two variables Signup and view all the answers

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

One causes the other Signup and view all the answers

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 Signup and view all the answers

What type of relationship exists between the size of shoes and the amount of money in one's pocket?

Coincidental Signup and view all the answers

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) Signup and view all the answers

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 Signup and view all the answers

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

They are positively correlated Signup and view all the answers

What is the value of Σxy in the given example?

42 Signup and view all the answers

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

r = ΣXY / (σx * σy) Signup and view all the answers

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

It has a positive impact on the annual yield per acre Signup and view all the answers

What is the value of σx in the given example?

38 Signup and view all the answers

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 Signup and view all the answers