PRC2 - QM August 2022

Important Questions

1. The average performance of the students of a college over last 10 years shows that the percentages of
students securing A, B and C grades are 15%, 30% and 55% respectively. The current year’s result shows
that out of total 400 students, the number of students securing A, B and C grades aggregated to 64, 144
and 192 respectively. Calculated value of chi square for this data would be?
a) 3.44 b) 2.24 c) 8.63 d) 8.16

2. An automobile company reports that the average annual maintenance cost for its 1300 cc car is
currently Rs.11,025. A random sample of 100 customers has mean annual maintenance of Rs.11,418 and
standard deviation of Rs.1,775. The calculated and table values of z in this case at 1% level of
significance is?
a) -2.214 & 2.576 b) 2.214 & 2.330 c) -2.214 & 2.330 d) 2.214 & 2.576

3. Which of the following construction of null and alternative hypothesis is/are correct? Please note that
population mean in both cases is 36.
(i) The sample data provide evidence that the population mean is less than 36. Therefore,
H0: µ < 36 H1: µ ≤ 36
(ii) The sample data provide evidence that the population mean is greater than 36. Therefore,
H0: µ ≤ 36 H1: µ > 36
a) Only case (ii) is correct b) Both cases are not correct
c) Only case (i) is correct d) Both cases are correct

4. Consider the following sample:

4.5, 4.9, 5.2, 5.6, 6.2
With 99% confidence level, the population mean is between?
a) 3.94 & 6.62 b) 5.92 & 6.08 c) 4.99 & 5.91 d) 5.22 & 6.08

5. From a given finite population, samples are drawn with replacement. If the sample size is increased from 10 to
100. The standard error would:
a) Decrease by 90% b) Decrease by 21.62% c) Decrease by 68.38% d) Decrease by 31.62%

6. A sample of 100 employees of an entity had a mean weight of 170 pounds with a standard deviation of 5
pound. Which of the following sample sizes will result in a confidence interval of the mean ±1 pound for this data
at the 90% confidence interval?
a) 3 b) 280 c) 20 d) 68

7. Which of the following statements is/are correct in regards the sampling distribution of the mean?
(i) The sampling distribution of the mean is a normal distribution
(ii) The mean of the sampling distribution of the mean is the same as the mean of the population
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

8. Which of the following statements is/are correct about random sample?

(i) It is bias free sample
(ii) It is not suitable for investigators who are interested in issues related to subgroups of a population.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

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9. Which of the following statements is/are correct about sampling distribution?

(i) The mean of a sampling distribution is the same as the mean of the population
(ii) Sampling distribution is symmetrical about its mean
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

10. Which of the following statements as regards to Normal distribution is/are correct?
(i) Both tails of the distribution approach and meet the horizontal axis at a finite but high value
(ii) Lower standard deviation leads to a flatter curve
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

11. In a consignment of 25 auto batteries, 3 are defective. If a random sample of 5 batteries is selected, the
probability of having exactly 2 defective batteries is?
a) 0.053 b) 0.035 c) 0.12 d) 0.087

12. Online booking system of food channel receives an average of two orders in every four minutes. Assuming an
approximate Poisson distribution that five or more orders will be received during a period of eight minutes?
a) 0.3712 b) 0.4679 c) 0.5321 d) 0.4679

13. The weights of bags of rice packed on a machine are normally distributed with mean = 5.15 kg and standard
deviation 0.05kg. If a bag is picked at random, find the probability that it weighs less than 5 kg is?
a) 0.9987 b) 0.5013 c) 0.4987 d) 0.0013

14. There are 5 red and 7 black cars for sale at fast wheels. If 2 cars are sold, what is the probability that both are
red?
a) 0.6364 b) 0.1515 c) 0.3636 d) 0.4167

15. The events A and B are mutually exclusive. If P(A) = 0.5 and P(B) = 0.4, then P(A or B) is:
a) 0.1 b) 0.54 c) 0.9 d) 0.2

16. Which of the following statements as regards to the value of the correlation coefficient is/are correct?
(i) It is always greater than 0
(ii) It is always lies in the range -1 to +1
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

17. Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is a typical
(ii) It might indicate a relationship where there is none
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

18. A 4-digit pin code can begin with any number except 0, 1 & 2. If repetition of the same digit is allowed, the
probability of a pin code begin with 5 and end with a 3 is?
a) 1/70 b) 1/90 c) 1/80 d) 1/49

19. If a dice is rolled 5 times, then probability of appearing 3 at least one time is?
a) 0.598 b) 0.402 c) 0.612 d) 0.388

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20. Following Consumer Price index (CPI) have been computed taking 20X8 as base year:
Year CPI
20X8 104.96
20X9 100
20Y0 116.19
20Y1 115.11
20Y2 132.01
Yearly inflation/(Deflation) for the above data would be
a) (4.98%), 5.83%, 7.75%, 12.80% b) 4.98%, 6.19%, 8.41%, 14.69%
c) (4.74%), 6.19%, 8.40%, 14.68% d) 4.74%, 6.19%, 8.40%, 14.68%

21. The price of a juicer machine during past five years is as follows:
Year Price (Rs.)
20X7 3700
20X8 4500
20X9 4800
20Y0 5000
20Y1 5300
Keeping 20X7 as base year, simple index numbers relative to price for the given period would be:
a) 100, 121.62, 129.73, 135.14, 143.24 b) 121.62, 100, 93.75, 90, 84.91
c) 100, 82.22, 77.08, 74, 69.81 d) 82.22, 100, 106.67, 111.11, 117.78

22. Which of the following statements as regards to variance is/are correct?

(i) It can never be smaller than the standard deviation
(ii) It can never be zero.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

23. Which of the following statements is/are correct?

(i) Range is a measure of dispersion.
(ii) Percentile is a measure of dispersion.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

24. Consider the following statements about Mean.

(i) It must be one of the values found in the data
(ii) In case of ungroup data, there may be more than one mean. Which of the above statements is/are correct?
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

25. A company invested 5 million. Interest rate was 10%, 12% and 14% per year for first, second and third year
respectively. Find NPV if cost of capital is 10%
a) 0.15 million b) 0.1656 million c) 0.2329 million d) None of these

26. A committee is to be made of 4 members from a total of 13 people of which 5 from Punjab, 2 from
Baluchistan, 4 from Sindh and 2 from KPK, what is the probability that committee contain none from Punjab?
a) 6.8% b) 0.7% c) 9.8% d) None of these

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27. From a given finite population, samples are drawn with replacement. If the sample size is decreased from 70
to 45. The standard error would:
a) Increase by 25% b) Increase by 21.62% c) Increase by 24.72% d) Increase by 75.28%

28. Tom and Jerry both invested same amount for 8 years. If Tom’s rate of return is 9% and Jerry’s rate is 10%
compounded annually then how much more percent amount Jerry will have after 8 years than Tom?
a) 1% b) 8% c) 15.1% d) None of these

29. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Where every member of the population has an equal chance of being selected as a member of the sample
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

30. There are 5 red and 7 black cars for sale at fast wheels. If 2 cars are sold, what is the probability that both are
black?
a) 0.6364 b) 0.3182 c) 0.3636 d) 0.4167

31. Which of the following statements as regards to the value of the correlation coefficient is/are correct?
(i) The coefficient of determination is the square of the correlation coefficient
(ii) The value of the coefficient of determination must always be in the range 0 to +1.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

32. You are given 7 true false questions and required to find the probability of at least 1 will be correct?
a) 0.992 b) 0.008 c) 0.9375 d) 0.0625

33. If Naina and Maina both invested same amount for 6 years and the rate of interest are 9% and 10%
compounded annually respectively. Then how much more percent amount Maina will have after 6 years than
Naina?
a) 1% b) 8% c) 9.45% d) None of these

34. If dice is rolled 5 times, then probability of appearing 3 at least one time?
a) 0.402 b) 0.598 c) 0.804 d) 0.196

35. Which of the following statement is/are correct:

(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) In Paasches price index, the denominator has to be recalculated every year to take account of the most
recent quantities consumed
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

36. Which of the following statements as regards to variance is/are correct?

(i) It is always smaller than the standard deviation
(ii) It can never be negative.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

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37. There is a two-digit number and 4 times the sum of its digits and 12 times the difference of its digits makes
the number. If the number is xy. Which of the following will give the number after simultaneous solution?
a) xy + 4y = 4x, 12x = xy +12y b) xy – 4x = -4y, 12x + xy = 12y
c) xy – 4y = 4x, xy + 12y = 12x d) None of these

38. Simplify: x + 10 = 11x2 – x +1

a) 1 & 0.8181 b) -1 & -0.8181 c) 1 & -0.8181 d) -1 & 0.8181

39. If Ahmad saves 1000 in the first month and 500 more every month, how much time he needs to save
Rs.45000?
a) 9 b) 12 c) 8 d) 6

40. Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is a typical
(ii) we can draw it for two or more variables
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

41. An investment of 1.5 million is made in a business for 4 years and gain is 0.5 million. Find rate of gain under
compound interest?
a) 6.54% b) 8.5% c) 7.45% d) 9.4%

42. If the discount rate is 12%, The present value of Rs. X received at the end of each year for the next five years
is equal to:
a) 6x b) 5x c) 3.6x d) 4.03x

43. A wallet contains 65 notes of Rs.1000 and 35 notes of Rs.500. Four notes are selected at random. Find the
probability that sum of notes are Rs.3000?
a) 0.3156 b) 0.6844 c) 0.3105 d) 0.6895

44. If Present value is 1000000 and interest is 750000 in 4years and 10 months. Find the simple interest rate?
a) 15.51% b) 5.17% c) 7.75% d) None of these

45. Which of the following statements about scatter diagram is/are correct?
(i) It is important to establish which variable is independent before plotting
(ii) It might indicate a relationship where there is none
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

46. Which of the following statements about Laspayer’s Price Index is/are correct?
(i) It tends to overstate inflation.
(ii) The denominator does not change from year to year.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

47. A company invested 4 million. Interest rate was 10%, 12% and 13% per year for first, second and third year
respectively. Find NPV if cost of capital is 10%
a) 0.15 million b) 0.1563 million c) 0.2329 million d) None of these

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48. A company invested 9 million. Interest rate was 8%, 12% and 14% per year for first, second and third year
respectively. Find NPV if cost of capital is 9%
a) 0.15 million b) 0.1563 million c) 0.4922 million d) None of these

49. Which of the following statements about Sampling distribution of the means is/are correct?
(i) The standard deviation of the sampling distribution is called standard error.
(ii) The standard deviation of the sampling distribution of the mean is the same as the standard deviation of
the population.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

50. Which of the following statements about scatter diagram is/are correct?
(i) Shows visual relation between variables.
(ii) It might indicate a relationship where there is none.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

51. Eight runners have equal chance of winning the race. What is the probability that a person wins the bet if he
selects top 3 runners in the correct order?
1 1
a) 5.61% b) 336 c) 112 d) None of these

52. Total Revenue earned by Mr. X is Rs. 550,000 and Variable cost & Fixed Cost incurred by Mr. X is Rs.
270,000 & Rs. 100,000 respectively. Calculate the total contribution earned by Mr. X is?
a) Rs. 270000 b) Rs. 370000 c) Rs. 280000 d) Rs.180000

53. Which of the following statements is/are correct regarding Class boundary?
(i) There is no gap between the classes.
(ii) Midpoint of the upper class limit of one class and the lower class limit of the subsequent class
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

54. Which of the following statement is correct about Population Parameter?

(i) All the items present in the data.
(ii) 50 people selected through random sampling.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

55. ∑(x − x)2 = 0.555 & n = 5, Find standard deviation?

a) 0.333 b) 0.003
c) 0.111 d) Insufficient Information

56. True about mean:

(i) Most repeated value
(ii) The best single figure to describe data
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

57. Ali invests Rs.2 million and get 0.5 million at redemption. If n = 4, which is best?
a) 7.15% monthly b) 7.23% bi-monthly c) 8.1% simple interest d) 7.51% quarterly

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58. Which of the following statements is/are correct?

(i) Semi-inter Quartile Range is a measure of dispersion.
(ii) Percentile is a measure of dispersion.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

59. Ali and Kashif invested equal sum in two different banks at 9% and 10% interest compounded annually. In 6
years how much percent of sum will Kashif earn more than Ali?
a) 9.45% b) 8.45% c) 7.45% d) 6%

60. A person wants to invest some money for 6 years. He is offered four different interests. Which one is better?
a) 15% simple interest b) 10% compounded annually
c) 9% compounded semi-annually d) 8% compounded monthly

61. Which one is not a quadratic equation?

a) 3x+4 =7 b) 2x2 = 9 c) 9x2 + 2x = -3 d) 5x2 + 8x = 9

62. A bank launched a new scheme where it offers 400000 per year for indefinite time after 8 years. How much
amount should bank require to collect from customer today if it offers 5% interest compounded annually?
a) 8 million b) 5.69 million c) 5.41 million d) 5.6 million

63. 81, 81, 81, 81, 21, 21, 21, 21, 21, 90, 90, 90, 90. Find mode of the data?
a) 21 only b) 21 & 81 only c) 21 & 90 only d) None of these

64. Sum of thrice of Arif and twice of Ali is 18000 and difference of thrice of Arif and twice of Ali is 15000. How
much amount Arif and Ali have?
a) 5500,750 b) 3000,750 c) 4500,750 d) 2500,750

65. The events A and B are mutually exclusive. If P(A) = 0.5 and P(B) = 0.4, then P(A and B) is:
a) 0.1 b) 0.54 c) 0.9 d) 0.2

66. Find the value invested now, if he received 8000 at the end of each year from year 4 to year 12 at the rate of
11% compounded annually?
a) 51939 b) 32389 c) 27119 d) 57652

67. The average performance of the students of a college over last 10 years shows that the percentages of students
securing A, B and C grades are 10%, 15% and 75% respectively. The current year’s result shows that out of total
500 students, the number of students securing A, B and C grades aggregated to 64, 88 and 348 respectively.
Calculated value of chi square for this data would be?
a) 6.52 b) 2.24 c) 8.12 d) 7.23

68. Which of the following statements is/are correct?

(i) There is strong relationship between two variables, the points on the scatter diagram would be
concentrated around a curve.
(ii) Linear regression analysis can be used to estimate fixed cost and variable cost per unit from historical
total cost and production data.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

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69. The weights of bags of rice packed on a machine are normally distributed with mean = 5.05 kg and standard
deviation 0.025kg. If a bag is picked at random, find the probability that it weighs less than 5.06 kg is?
a) 50.82% b) 1.64% c) 65.54% d) 47.72%

70. Which of the following statements is/are correct?

(i) A grouped frequency distribution of discrete data has gaps between the classes.
(ii) Discrete data can be converted into continuous data.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

71. Which of the following statements about scatter diagram is/are correct?
(i) It is least important to establish which variable is independent
(ii) It might indicate a relationship where there is none.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

72. Which of the following statements about scatter diagram is/are correct?
(i) It leads to correct conclusion even if there are only few data points.
(ii) It might indicate a relationship where there is none.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

73. Which of the following statements about scatter diagram is/are correct?
(i) It is least important to establish which variable is independent
(ii) It leads to correct conclusion even if there are only few data points.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

74. A company invested 5 million. Interest rate was 12%, 14% and 16% per year for first, second and third year
respectively. Find NPV if cost of capital is 10%
a) 0.15 million b) 0.1563 million c) 0.2329 million d) 0.4816 million

75. Eram invested Rs.2m and received Rs.2.5m after 3 years. Calculate the rate of interest?
a) 7.51% compounded monthly b) 7.51% compounded quarterly
c) 7.51% compounded bi-monthly d) 7.51% compounded annually

76. If the current discount rate is 10%, Then the present value of a certain amount X received at the end of each
year will become for 4years:
a) 4x b) 3.16x c) Both d) None

77. If the current discount rate is 9%, Then the present value of a certain amount X received at the end of each
year will become for 4years:
a) 3.6x b) 3.24x c) Both d) None

78. Consider the following sample: 4.5, 4.9, 5.2, 5.6, 6.2 With 95% confidence level, the population mean is
between?
a) 3.94 & 6.62 b) 5.92 & 6.08 c) 4.47 & 6.09 d) 5.22 & 6.08

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79. Which of the following construction of null and alternative hypothesis is/are correct? Please note that
population mean in both cases is 36.
(i) The sample data provide evidence that the population mean is less than 36. Therefore,
H0: µ ≠ 36 H1: µ = 36
(ii) The sample data provide evidence that the population mean is less than 36. Therefore,
H0: µ = 36 H1: µ < 36
a) Only case (i) is correct b) Both cases are not correct
c) Only case (ii) is correct d) Both cases are correct

80. Which of the following statements as regards to Normal distribution is/are correct? Both tails of the
distribution approach and meet the horizontal axis at a finite but high value Higher standard deviation leads to a
flatter curve
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

81. Online booking system of food channel receives an average of two orders in every four minutes. Assuming an
approximate Poisson distribution that five or more orders will be received during a period of nine minutes?
a) 0.3712 b) 0.4679 c) 0.5321 d) 0.3679

82. A company invested 4 million. Interest rate was 10%, 12% and 13% per year for first, second and third year
respectively. Find NPV if cost of capital is 9%
a) 0.15 million b) 0.1563 million c) 0.2613 million d) None of these

83. Which of the following statements about Laspayer’s Price Index is/are correct?
(i) It tends to overstate inflation.
(ii) The denominator does change from year to year.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

84. A company invested 4 million. Interest rate was 10%, 12% and 14% per year for first, second and third year
respectively. Find NPV if cost of capital is 12%
a) 0.15 million b) 0.1563 million c) 0.2329 million d) (0.0144) million

85. The price of a juicer machine during past five years is as follows:
Year Price (Rs.)
20X7 3700
20X8 4800
20X9 4500
20Y0 4500
20Y1 5300
Keeping 20X9 as base year, simple index numbers relative to price for the given period would be:
a) 100, 121.62, 129.73, 135.14, 143.24 b) 121.62, 100, 93.75, 90, 84.91
c) 100, 82.22, 77.08, 74, 69.81 d) 82.22, 106.67, 100, 100, 117.78

86. A sample of 100 employees of an entity had a mean weight of 170 pounds with a standard deviation of 5
pound. Which of the following sample sizes will result in a confidence interval of the mean ±3 pound for this data
at the 95% confidence interval?
a) 3 b) 280 c) 11 d) 68

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87. The price of a juicer machine during past five years is as follows:
Year Price (Rs.)
20X7 3700
20X8 4500
20X9 4800
20Y0 5000
20Y1 5300
Keeping 20X8 as base year, simple index numbers relative to price for the given period would be:
a) 100, 121.62, 129.73, 135.14, 143.24 b) 121.62, 100, 93.75, 90, 84.91
c) 100, 82.22, 77.08, 74, 69.81 d) 82.22, 100, 106.67, 111.11, 117.78

88. Which of the following statements is/are correct in regards the sampling distribution of the mean?
(i) The sampling distribution of the mean is not a normal distribution
(ii) The standard deviation of the sampling distribution of the mean is the same as the standard deviation of
the population.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

89. There are 5 red and 7 black cars for sale at fast wheels. If 2 cars are sold, what is the probability that first is
red & second is black?
a) 0.6364 b) 0.1515 c) 0.2651 d) 0.7349

90. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Unequal chance of selection
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

91. The weights of bags of rice packed on a machine are normally distributed with mean = 5.15 kg and standard
deviation 0.05kg. If a bag is picked at random, find the probability that it weighs less than 5.05 kg is?
a) 0.9987 b) 0.0228 c) 0.9772 d) 0.0013

92. There are 6 red and 9 black cars for sale at fast wheels. If 2 cars are sold, what is the probability that first is
red & second is black?
a) 0.6364 b) 0.1515 c) 0.7429 d) 0.2571

93. A committee is to be made of 5 members from a total of 12 people of which 5 from Punjab, 2 from
Baluchistan, 3 from Sindh and 2 from KPK, what is the probability that committee contain 2 from Sindh and 1
each from others?
a) 6.8% b) 0.7% c) 9.8% d) 7.6%

94. If a dice is rolled 4 times, then probability of appearing 3 at least one time is?
a) 0.4823 b) 0.5177 c) 0.612 d) 0.388

95. If two dices are rolled then probability of appearing at least one six appear?
a) 0.598 b) 0.402 c) 0.694 d) 0.306

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96. Which of the following statements is/are true about population?

(i) It is desired to consider all the population in an observation.
(ii) In an observation we consider all of the population.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

97. Which of the following statements is/are true about discrete data?
(i) There is no gap between them.
(ii) Mid-point is calculated by dividing the upper and lower limit in each class
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

98. Which of the following statements is/are true about discrete data?
(i) There is gap between them.
(ii) Mid-point is calculated by dividing the upper and lower limit in each class
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

99. Which of the following statements is/are correct?

(i) A grouped frequency distribution of discrete data has gaps between the classes.
(ii) In class boundaries, there is no gap between the classes.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

100. Which of the following statement is/are correct:

(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) In Laspayer price index, the denominator has to be recalculated every year to take account of the most
recent quantities consumed
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

101. Which of the following statement is/are correct:

(i) In Laspeyre price index, the denominator does change from year to year.
(ii) In Paasches price index, the denominator has to be recalculated every year to take account of the most
recent quantities consumed
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

102. Which of the following statement is/are correct where Regression is used?
(i) It is very important in accounting and other business operations
(ii) It is widely used in economics & business
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

103. Which of the following statement is/are correct where Regression is used?
(i) It tells fixed cost but not variable cost per unit.
(ii) It shows the extent of relationship between two variables
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

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104. 21, 21, 21, 21, 21, 28, 28, 28, 28, 29, 29, 29, 29. Find mode of the data?
a) 21 only b) 21 & 28 only c) 21 & 29 only d) None of these

105. Kareem and Jaffer have invested same amounts in two different investment schemes. Karem is getting a
return of 8% compounded annually whereas Jaffer gets a return of 10% compounded annually, the amount of
Jaffer’s interest over a period of six years would exceed the amount of Kareem’s interest by
a) 11.25% b) 12% c) 31.47% d) 8%

106. A bank launched a new scheme where it offers 8000 per year for indefinite time after 8 years. How much
amount should bank require to collect from customer today if it offers 8% interest compounded annually?
a) 54027 b) 100000 c) 63017 d) 58349

107. Ali receives a total of Rs.288000 in two years in the form of monthly installments. If he receives 1000 more
than the previous month calculate the first installment?
a) 7500 b) 6500 c) 500 d) None of these

108. Ali has to pay Rs. 1500000 in installments. If he pay the first installment of Rs. 80000 and increase every
installment by 1.2, then in which year he will pay the amount?
a) 8th b) 9th c) 10th d) 11th

109. If Matti save Rs. 426000 monthly in two years. If he saves 500 in first month and increase by x every month.
Find the amount of last installment.
a) 40000 b) 35000 c) 36000 d) 33000

500
110. 25x - x
= 25. Find the value of x?
a) -4 & 5 b) 4 & -5 c) 6 & 3 d) 5 & -3

111. Which of the following about cluster sampling is/are correct. It is type of multistage sampling.
It is useful when all data of individuals of population are not given.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

112. Which of the following construction of null and alternative hypothesis is/are correct? Please note that
population mean in both cases is 36.
(i) The sample data provide evidence that the population mean is not equal to 36. Therefore,
H0: µ = 36 H1: µ ≠ 36
(ii) The sample data provide evidence that the population mean is less than 36. Therefore,
H0: µ < 36 H1: µ ≤ 36
a) Only case (ii) is correct b) Both cases are not correct
c) Only case (i) is correct d) Both cases are correct
650
113. 15x - = 15. Find the value of x?
x
a) -6.1 & 7.1 b) -7.1 & 6.1 c) 6.1 & 3.1 d) -6.1 & -3.1

114. Which of the following statements is/are correct?

(i) Range is a measure of dispersion.
(ii) Semi-inter Quartile Range is a measure of dispersion.
a) Both statements are correct b) Both statements are not correct

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c) Only statement (i) is correct d) Only statement (ii) is correct

115. Which of the following statement is/are correct about correlation coefficient?
(i) It is always from 0 to +1
(ii) It is always from 0 to -1
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

116. Which of the following statements is/are correct?

(i) Range is a measure of dispersion.
(ii) Inter Quartile Range is a measure of dispersion.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

117. A project costing 2 million is expected to yield Rs. 100000, Rs. 200000 & Rs. 2300000 at the end of each
year for next 3 years respectively. The IRR of the project is?
a) 8.8% b) 9.7% c) 9.2% d) 11.51%

118. A company invested 3 million. Interest rate was 10%, 12% and 14% per year for first, second and third year
respectively. Find NPV if cost of capital is 8%
a) 0.15 million b) 0.1563 million c) 0.2329 million d) 0.3013 million

119. A wallet contains 65 notes of Rs.1000 and 35 notes of Rs.500. Four notes are selected at random with
replacement. Find the probability that sum of notes are Rs.3000?
a) 0.3156 b) 0.6844 c) 0.3105 d) 0.6895

120. The average performance of the students of a college over last 10 years shows that the percentages of
students securing A, B and C grades are 10%, 40% and 50% respectively. The number of students securing A,B
and C grades aggregated to 88, 188 and 280 respectively. Calculated value of chi square for this data would be?
a) 3.44 b) 24.22 c) 8.63 d) 8.16

121. When coin is rolled three times find the probability that exactly one head will appear?
a) 0.375 b) 0.625 c) 0.357 d) 0.875

122. One empire from Sindh, two from Baluchistan, two from Punjab and four from KPK, what is the probability
that one is from each province?
a) 6.8% b) 12.7% c) 9.8% d) None of these

123. The average performance of the students of a college over last 10 years shows that the percentages of
students securing A, B and C grades are 10%, 40% and 50% respectively. The current year’s result shows that out
of total 400 students, the number of students securing A, B and C grades aggregated to 64, 144 and 192
respectively. Calculated value of chi square for this data would be?
a) 16.32 b) 2.24 c) 8.63 d) 8.16

124. A sample of 100 employees of an entity had a mean weight of 170 pounds with a standard deviation of 5
pound. Which of the following sample sizes will result in a confidence interval of the mean ±3 pound for this data
at the 99% confidence interval?
a) 3 b) 280 c) 11 d) 19

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125. In a consignment of 20 auto batteries, 3 are defective. If a random sample of 5 batteries is selected, the
probability of having exactly 2 defective batteries is?
a) 0.053 b) 0.035 c) 0.1316 d) 0.8684

126. From a given finite population, samples are drawn with replacement. If the sample size is increased from 45
to 75. The standard error would:
a) Decrease by 22.54% b) Decrease by 21.62% c) Decrease by 29.09% d) Decrease by 75.28%

127. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Where every member of the population has an unequal chance of being selected as a member of the
sample
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

128. If Naina and Maina both invested same amount for 6 years and the rate of interest are 8% and 9%
compounded annually respectively. Then how much more percent amount Maina will have after 6 years than
Naina?
a) 1% b) 8% c) 9.45% d) 9.02%

129. 21, 21, 21, 21, 28, 28, 28, 28, 28, 29, 29, 29, 29. Find mode of the data?
a) 28 only b) 21 & 28 only c) 21 & 29 only d) None of these

130. Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is a typical
(ii) It shows the relationship between two variables.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

131. Basheer saves Rs. 105000 in one year. If his first installment was Rs. 500, how much more Rs.X will be
added monthly to accumulate the amount?
a) 500 b) 1000 c) 1500 d) 2000

132. If the discount rate is 13%, The present value of Rs. X received at the end of each year for the next four years
is equal to:
a) 2.97x b) 3.16x c) 3.6x d) 4.03x

133.
Call metering 1 min 2 min 3 min 4 min
Call Package Rs.500 for 500 min Rs.600 for 700 min Rs.800 for 999 min
GPS Package Rs.500 for 1000 Rs.800 for 2000 Rs.1000 for 3500
MBs MBs MBs
SMS Package 100 per month 200 per month 300 per month
If a customer wants to choose one of these packages, then find the number of ways available to him?
a) 13 b) 36 c) 108 d) 81

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134. Seven years ago the age of a father was thrice of his son. After 7 years the age of the father will be twice that
of his son. The present ages of the father and the son are?
a) (69,23) b) (85,39) c) (78,32) d) None of these

135. Which of the following statement is/are correct:

(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) Laspeyre price index is used more than the Paasche price index in practice.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

136. Calculate the Harmonic Mean of the following data: 10, 12 & 15
a) 12.33 b) 12.16 c) 12.31 d) 12

137. Calculate the IRR of the project

Year Cashflow
0 (15 Lac)
1 1 Lac
2 2 Lac
3 14.5 Lac
a) .0573% b) .573% c) 5.73% d) 57.3%

138. A person invested some amount today @1.8% per quarter for 10 years find his investment if he receives Rs
10 million
a) 8.356 million b) 4.13 million c) 4.899 million d) None of these

139. Calculate the IRR of the project

Year Cashflow
0 (5m)
1 1m
2 5.2m
3 0.85m
a) 19.2% b) 12.3% c) 0.192% d) 14.4%

140. Find the maximum profit if P = 250x + 375y

Constraints are: 4x + 2y ≤ 25000
3x + 2y ≤ 20000
x,y ≥ 0
a) 2187500 b) 3750000 c) 1250000 d) None of these

141. Find constraints from following data:

X Y
Contribution per unit 150 300
Maximum Sales 5000 3700
Direct Labour per unit 3 1
Machine per unit 2 1
Maximum Direct labour available is 18000 hours
Maximum Machine hours available is 24000 hours
a) 150x + 300y b) 150 x + 300y c) 150x + 300y d) 150 x + 300y
3x + y ≤ 18000 3x + 2y ≤ 18000 3x + y ≥ 18000 3x + y ≤ 18000

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2x + y ≤ 24000 x + y ≤ 24000 2x + y ≤ 24000 2x + y ≤ 24000

x,y≤0 x,y≥0 x,y≥0 x,y≥0

142. Basit took Rs.200000 from bank at 13.5% rate per year. What is the total amount after 5 years?
a) 356700 b) 376712 c) 335000 d) 337500

143. A project costing 4 million is expected to yield Rs. 600000, Rs. 800000 & Rs. 4000000 at the end of each year
for next 3 years respectively. The IRR of the project is?
a) 12.22% b) 21.22% c) 22.12% d) 22.21%

144. The value of perpetuity of Rs. 2500 per month at the rate 12% per annum compounded monthly?
a) 20833 b) 3000000 c) 250000 d) 25000

145. A coin is rolled three times find the probability that exactly one head will appear?
a) 0.625 b) 0.125 c) 0.875 d) 0.375

146. FX food channel receives an average of six orders in every four minutes. Assuming an approximate Poisson
distribution that five or more orders will be received during a period of four minutes?
a) 0.2849 b) 0.7151 c) 0.4455 d) 0.5545

147. Which of the following statements is/are correct?

(i) Quartile is a measure of dispersion.
(ii) Percentile is a measure of dispersion.
a) Both statements are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct

148. Find constraints from following data:

X Y
Contribution per unit 250 350
Maximum Sales 6000 4500
Direct Labour per unit 1 3
Machine per unit 2 1
Maximum Direct labour available is 18000 hours
Maximum Machine hours available is 24000 hours
a) 250x + 350y b) 250 x + 350y c) 250x + 350y d) 250 x + 350y
x + 3y ≤ 18000 2x + 3y ≤ 18000 x + 3y ≤ 18000 x + 3y ≤ 24000
2x + y ≤ 24000 x + y ≤ 24000 2x + y ≤ 24000 2x + y ≤ 18000
x,y≤0 x,y≥0 x,y≥0 x,y≥0

149. John and Johnson have invested same amounts in two different investment schemes. John is getting a return of
9% compounded annually whereas Johnson gets a return of 10% compounded annually, the amount of Johnson’s
interest over a period of six years would exceed the amount of John’s interest by
a) 9.44% b) 5.63% c) 31.47% d) 13.95%

150. X 0 1 2 3 4
F 8 7 3 1 1
Calculate the Standard deviation of the above data?
a) 1.095 b) 1.2 c) 1.44 d) 1

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x
151. If, x = 4, y = 3, y = 2
Which of the following is correct?

152.

Which of the following constraints is shown?

a) 12x + 8y ≤ 24 b) 2x + 3y ≤ 24
15x + 9y ≤ 45 3x + 5y ≤ 45
x≤4 x≤4
x, y ≤ 0 x, y ≤ 0

c) 8x + 12y ≤ 24 d) 2x + 3y ≤ 24
15x + 9y ≤ 45 3x + 5y ≥ 45
x≤4 x≤4
x, y ≥ 0 x, y ≥ 0

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153. Fantastic Five Football Club (FFC) team loses 7% of its matches in every session. The probability that FFC will
lose exactly one of its next five matches is?
a) 7% b) 26.18% c) 0.01% d) 73.82%

154. The scores obtained by six students in a set of examination are 80, 40, 50, 72, 45 and 81. These scores are
changed by 15%. What will be the effect of these changes on the mean and standard deviation?
a) Mean and standard deviation will remain unchanged
b) Mean will increase by 15% but standard deviation will remain unchanged
c) Mean and standard deviation both will increase by 15%
d) Mean will remain unchanged but standard deviation will increase by 15%

155.
X 0 1 2 3 4
F 8 7 3 1 1
The variance of the above data is?
a) 1.095 b) 1.2 c) 2.098 d) 4.4

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