QUANTITATIVE APTITUDE (PAPER 3)

Index

Business Mathematics(40 Marks) Page No

Chapter 1 – Ratio, Proportion, Indices and Logarithm 2-29
Chapter 2 – Equations 30-43
Chapter 3 – Linear inequalities 44-50
Chapter 4 – Mathematics of Finance 51-81
Chapter 5 – Permutations and Combinations 82-93
Chapter 6 – Sequence and Series 94-113
Chapter 7 – Sets, Relations ,Functions, limits and continuity 114-132
Chapter 8 – Basics of differential and integral calculus 133-161

Logical Reasoning (20 Marks)

Chapter 9- Number series, coding, decoding and odd man out 162-172
Chapter 10- Direction Test 173- 188
Chapter 11- Seating arrangement 189- 198
Chapter 12 – Blood relations 199-208

Statistics (40 Marks)

Chapter 13 – Statistical description of data and sampling theory 209-242
Chapter 14- Measures of Central tendency and dispersion 233-273
Chapter 15 – Probability 274-292
Chapter 16 – Theoretical distribution 293-305
Chapter 17- Correlation and Regression 306-318
Chaper 18 – Index numbers 319-328

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 Chapter 1- Ratios, Proportions, Indices and Logarithm
Ratio

Ratio is a relationship between two quantities of the same kind and denotes how many times
one of the quantities is Contained in the other.

If there are two quantities a & b, then the relationship between them can be expressed as a:b
(‘a’ is to ‘b’)
where ‘a’ is called as antecedent and 'b' is called as the Consequent.
Inverse Ratio
b:a is the Inverse ratio of a:b
Explanation
Inverse ratio is of a:b is obtained by taking reciprocals of a & b
i.e,
1 1
Inverse ratio of a:b is of 𝑎 : 𝑏

=b : a
1 1 1
Similarly inverse ratio of a:b:c =𝑎 : 𝑏 : 𝑐 = bc:ac:ab

Compound Ratio
Compound ratio of two or more ratios is obtained by taking the ratio between the product of
antecedents and product of consequent .

If a:b, c:d & e:f are the ratios given then compound ratio is (a x c x e) : (b x d x f)
Duplicate Ratio
Duplicate ratio of a:b is a2:b2
Triplicate Ratio
Triplicate ratio a:b is a3:b3
Sub duplicate ratio

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Sub duplicate ratio of a:b is √𝑎 : √𝑏

Sub Triplicate ratio

3 3
Sub Triplicate ratio of a:b is √𝑎 : √𝑏

= a1/3 : b1/3
Worked Examples:
Example1:
Find the Inverse ratio of 6:7
Solution: WKT the inverse ratio of a:b is b:a.
Therefore inverse ratio of 6:7 is 7:6

Example2:
Find the Inverse ratio of 5:8:9
Solution: WKT that inverse ratio of a:b:c = bc:ac:ab
Therefore Inverse ratio of 5:8:9 = 72:45:40
Example3:
The ratio compounded of 4:5 and Sub duplicate ratio of a:9 is 8:15 then ‘a’ is
a) 2 b) 3 c) 4 d) 5

Solution: Given compound ratio of 4:5 and √𝑎 : √9 = 8: 15

i.e (4× √𝑎 ) ∶ (5 × 3) = 8: 15

Equating the antecents we get (4× √𝑎 ) = 8

√𝑎 = 2
a=4
Example4:
Find the compound ratio of 4:3, 5:2 & 10:7
Solution: Compound ratio = Product of antecedents: product of consequents

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i.e (4× 5 × 10) ∶ (3 × 2 × 7) = 100:21
Example5:
Find the Duplicate & Triplicate ratio of 5:6
Solution : Duplicate ratio of 5:6 = 52: 62 =25:36
Triplicate ratio of 5:6 = 53: 63 = 125 : 216
Example6:
Find the sub Duplicate ratio of 225:289

Solution: Sub duplicate ratio of 225: 289 = √225 ∶ √289 = 15: 17

Example7:
If P:Q is the sub duplicate ratio of P- x2 : Q-x2, then x2 is
𝑃 𝑄 𝑃𝑄
a) 𝑃+𝑄 𝑏) 𝑐) d) none
𝑃+𝑄 𝑃+𝑄

Solution: Given √P − 𝑥 2 : √Q − 𝑥 2 = P : Q
√P− 𝑥 2 𝑃
i.e =𝑄
√Q− 𝑥 2

square on both sides

P − 𝑥2 𝑃2
=
Q − 𝑥 2 𝑄2
P𝑄 2 − 𝑥 2 𝑄 2 = 𝑄𝑃2 − 𝑃2 𝑥 2
𝑃2 𝑥 2 − 𝑥 2 𝑄 2 = 𝑄𝑃2 − P𝑄 2
𝑥 2 (𝑃2 − 𝑄 2 ) = 𝑃𝑄(𝑃 − 𝑄)
𝑥 2 (𝑃 + 𝑄)(𝑃 − 𝑄) = 𝑃𝑄(𝑃 − 𝑄)
𝑃𝑄
𝑥2 =
𝑃+𝑄

An amount divided in Certain ratio

let the total amount of Rs 30000 is divided amongst A, B & C in the ratio 2:3:5 then,

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The share of A is taken as 2x and that of B & C as 3x and 5x
Sum of their shares is equal to the Amount
ie. 2x + 3x + 5x = 30000
10x = 30000
x = 3000
:. A’s share is 2x = 2(3000) = 6000
B's share is 3x = 3 (3000) = 9000
C's share is 5x = 5(3000) = 15000
Example1:
A bag Contains Rs.115 in the form of 1 rupee, 50 paisa and 10 paisa coins in the ratio 1:2:3
Find the number of each type of coins
Solution: Total amount in the bag = Rs.115 = 11500 paise
Let the number of 1 rupee coins = 1x
Number of 50 paisa coins=2x
And number of 10 paisa coins = 3x
Now (1x × 100) + (2𝑥 × 50) + (3𝑥 × 10) = 11500
230x = 11500
X=50
There fore the number of 1 rupee coins = 1x = 50
Number of 50 paisa coins=2x =100
And number of 10 paisa coins = 3x=150

Example2:
1 1 1
Rs 286 are to be divided amongst A, B&C so that their shares are in the ratio : : . The
2 3 4
respective shares of A, B , C are
1 1 1
Solution: Given ratio of shares 2 : 3 : 4 = 12: 8: 6 = 6: 4: 3

Let A’s share be 6x

B’s and C’s share be 4x and 3x respectively
Now 6x+4x+3x = 286

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13x = 286
X=22
Therefore A’s share = 6x = 132
B’s share = 4x =88
C’s share = 3x = 66

Problems on ratio between 2 numbers and 3 numbers with a Condition

Example1:
Two numbers are in the ratio 5:8. If 10 is added to each of them their ratio become 3:4 The
numbers are.
Solution: let the 2 numbers be 5x and 8x
5𝑥+10 3
Given 8𝑥+10 = 4

20x+40 = 24x+30
10=4x
X=5/2

Example 2:
The ages of two persons are in the ratio of 2:3. 5 years years hence their ages ratio will be 5:7.
Their present ages are.

Example3:

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The two numbers are in the ratio 5:8. The difference b/w their squares is 39. find. The greater
number
a) 5 b) 8 c) 16 d) 10

Example 4:
Find three numbers in the ratio 1:3:5 so that the sum of their cubes is equal to 1224
a) 2,6,10 b)1,3,5 c) 3,9,15 d) none

Comparative problems

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Example1 :
If the salary of 'p’ is 35% lower than that the Q Salary of R is 40% higher than that of Q, then
the ratio of the salary of P & R will be.

Continued ratio
Example1 :
If A:B = 3:5 & B:C = 6 : 7 then find A:B:C

Example2:

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If A:B = 2 : 3 & B:C = 4 : 7 find A:B:C

Example3 :
If A:B = 2:3, B:C = 4 : 5 & C:D = 4 : 7 then find A:B:C:D

Example4:

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If A:B = 5 : 6 , B:C = 7 : 8 & C:D =3:4 find A:B:C:D

Problems on Mixture
Example1
The cost price of Rice A is Rs.50 per kg and that of Rice B is Rs.70 per kg. In what ratio they
have to be mixed so that the Cost price of the mixture may be Rs.65 per Kg.

Example2:

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The cost price of Dal A is Rs.80 per Kg and that of Dal B is Rs.90 per Kg. If the selling price of
the mixture is Rs.100 and the profit percentage is 25 percent on the selling price then find the
ratio in which the two varieties have to be mixed

Proportion
The term proportion may be defined as equality of two ratios.
a:b=c:d
which is usually expressed as

𝑎 𝑐
= 𝑑 or ad = bc or a:b::c:d
𝑏

where 'd' is 4th proportional (highest proportional)

Note: for a proportion a:b::c:d ,
Product of extremes = product of means

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i.e , ad = bc
Continued proportion

The proportion a:b :: b:c is Said to be a Continued proportion.

where ‘c’ is the 3rd proportional (highest proportional)
‘b’ is the mean proportional
Note:- For a Continued proportion
a:b :: b:c

𝑎 𝑏
We can write =
𝑏 𝑐

∴ 𝑏 2 = ac => b = √𝑎𝑐
Properties of proportion
• Alternendo
If a:b :: c:d
then by Alternendo a:c: :: b:d
(obtained by interchanging Consequent of the first ratio & antecedent of the 2nd
ratio)
• Invertendo
If a:b :: c:d
Then by Invertendo b:a :: d:c
(obtained by interchanging antecedent & consequent both the ratios)

• Componendo
If a:b :: c:d
then by componendo, (a+b): b :: (c+d):d
• Dividendo
If a:b :: c:d
Then by dividendo (a-b): b :: (c-d): d
• Componendo and dividendo
If a:b :: c:d
Then by componendo & dividendo.
(a+b): (a-b) :: (c+d): (c-d)

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 • Addendo
If a:b = c:d = e:f = K
Then by addendo
(a+c+e): (b+d+f) = k
• Subtrahendo
If a: b = c : d = e : f = K
Then by subtrahendo
(a-c-e):(b-d-f) = K

Example1:
The mean proportion between 24 & 54
Solution: Given a=24 c=54

Therefore mean proportional b= √𝑎𝑐

b=√24 × 54 = 36
Example2:
1 1 1 1
If 3 , 5 , 4 , 𝑥 are in proportion then x= ?

Solution: We know that ad = bc for 4 terms to be in proportion

1 1 1 1
× = ×
3 𝑥 5 4
20
X= 3

Example3:
The 3rd proportion to 20 & 30
Solution: WKT third proportion means c,
It is given by c = 𝑏 2 /a
= 900/20
= 45

Example4

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 𝑎 𝑏 𝑐 𝑎+𝑏+𝑐
If 3 = 4 = 5 𝑡ℎ𝑒𝑛 𝑖𝑠
𝑏
𝑎 𝑏 𝑐
Solution: Let 3 = 4 = 5 = 𝑘

a=3k , b=4k and c=5k

𝑎+𝑏+𝑐 3𝑘+4𝑘+5𝑘 12𝑘
Now = = =3
𝑏 4𝑘 4𝑘

Example5
The fourth proportional of 3,5,9 is
a) 15 b) 16 c) 48 d) none of the above
Solution: We know that ad = bc for 4 terms to be in proportion
𝑏𝑐
d= 𝑎
5×9
= = 15
3

Example6
𝑥 𝑧 𝑥 𝑦
If = 𝑤 implies = then
𝑦 𝑧 𝑤
the process is called
a) Dividendo b) Addendo c) Alternendo d) Invertendo
Solution: Answer is (c) as We know that If a:b=c:d then by Alternendo a:c=b:d

Example7
𝑝 𝑟 𝑝+𝑟
If 𝑞 = 𝑠 = 𝑞+𝑠 , the process is called
a) Addendo b) Subtrahendo c) Componendo d) dividendo
Solution: Answer is (a) , as we know that if a:b=c:d =k then by addendo (a+c): (b+d) = k

Example8

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 𝑥 𝑦 𝑧 2𝑥−5𝑦+4𝑧
If 3 = = 5 𝑡ℎ𝑒𝑛 is
4 2𝑦
a) 3/4 b) 4/3 c) 3/2 d) none
𝑥 𝑦 𝑧
Solution: Let 3 = =5 =𝑘
4

Therefore x=3k , y=4k and z=5k

2(3𝑘)−5(4𝑘)+4(5𝑘) 6𝑘 3
Now = 8𝑘 = 4
2(4𝑘)

Indices
It is the plural for of Index, which means power.
Laws of Indices
• am x an = am+n [Base must be same]
1
• 𝑎−𝑚 = 𝑎𝑚
𝑎𝑚
• = am-n
𝑎𝑛

• ao = 1
• If ax = ay then
x=y
m
• √a = a1/m
• If xa = ya
then x=y
• ((am)n)p = amnp

Some Important Algebraic Formulae

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 • (a+b)2 = a2+ 2ab + b2
• (a-b)2 = a2- 2ab + b2
• a2-b2 = (a+b) (a-b)
• (a+b)3 = a3 +b3 + 3ab(a+b)
• (a-b)3 = a3 – 3a2b + 3ab2 –b3
• a3+b3 = (a+b) (a2-ab+b2)
• a3-b3 = (a-b) (a2+ab+b2)
• (a+b+c)2 = a2 +b2 + c2 + 2ab + 2bc + 2ca
Note :- If a1/3 + b1/3 + c1/3 = 0
Then (a+b+c)3 = 27abc

Example1
2𝑛+1 + 2𝑛
The value of 2𝑛+3 −2𝑛+1 is

a) ½ b)1/3 c)1/6 d)none

Example2

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If x ∙ x1/4 = (x1/4)x then x is
a)4 b)5 c) 6 d)none

Example3
If (5)150 = (5x)50 then x =?
a) 125 b)625 c)25 d) none

Example4
𝑥𝑎 2 +𝑎𝑏+𝑏 2 𝑥𝑏 2 +𝑏𝑐+𝑐 2 𝑥𝑐 2 +𝑎𝑐+𝑎2
The value of( )𝑎 ₓ( )𝑏 ₓ( )𝑐 is
𝑥𝑏 𝑥𝑐 𝑥𝑎

a)0 b)1 c)2 d)none

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Example5
If ax=b , by=c & cz=a3 then the value of xyz is
a)1 b)2 c)3 d)none

Example6
If 31/x = 41/y = 121/z then x+y = ?
a)1/z b)z c)2z d)none

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Example7
5𝑛 +5𝑛−1
The value of 5𝑛+1 −5𝑛 is
6 5 2
a) 21 b) 21 c) 3 d) 𝑛𝑜𝑛𝑒

Example8

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 2𝑚+1 𝑥 32𝑚−𝑛+3 𝑥 5𝑛+𝑚+4 𝑥 62𝑛+𝑚
The value of is
62𝑚+𝑛 𝑥 10𝑛+1 𝑥 15𝑚+3

a) 32𝑚+2𝑛 b) 32𝑛+2𝑚 c) 1 d) none

Example9
[1-{1-(1-x2)-1}-1]-1/2 is equal to
a) x b) 1/x c) 1 d) none

Example10

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 1
[(𝑥 𝑛 ) 𝑛+1 ] is equal to
a) xn b) xn+1 c) xn-1 d) none

Example11

If a = 5+3√2 then the value of a1/2 + a-1/2 is

a) 3.36 b) 4.155 c) 6.155 d) none

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 Logarithm
If N = ax
then ‘x’ is said to the logarithm of the number N to base ‘a’ ie x = log 𝑎 𝑁
Characteristic & Mantissa

The integral part of a common logarithm is called the characteristic & the non negative decimal
part called the mantissa.

Antilogarithm
If x is said to be a logarithm of N to a given base, then N is said to be an antilogarithm of x to
that base
i.e. If log 𝑎 𝑁 = x then N= antilog x

Laws of logarithm
• log 𝑎 𝑥 + log 𝑎 𝑦=log 𝑎 𝑥𝑦
where x & y are positive number
𝑥
• log 𝑎 𝑥– log 𝑎 𝑦=log 𝑎 (𝑦)

• Log mk = k log m
• Change of base property
log 𝑛 𝑚= logm/logn

• log 𝑎 1= 0
• Logarithm of a number to the same base is equal to 1
Ex :- 1) log 5 5= 1

2) log10 10= 1

• 𝑎log𝑎 𝑥 = 𝑥
• If log x = log y
Then x = y
• Number of digits in a given numeral = log(numeral)

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Example: find the number of digits in the numeral 212
Given log2 = 0.3010
Solution: Number of digits = log(212)
=12 log2
=12 . 0.3010
=3.612
=4
Conversion from logarithm to exponential form
1. Base remains as the base
2. Value becomes the power
Conversion from Exponential to logarithm form
1. Power becomes the value
2. Base remains as the base
Problems on Conversion
Example1:
−1
If Log 10000x = then x = ____
4

Example2:
If Log 2x + Log 4x = 6 then the value of x

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Example3
If log 2 [log 3 (log 2 x ) ] = 1, the x equals:
a) 128 b) 256 c) 512 d) None

Example4
log 4 (x 2 + x ) - log 4 (x + 1 ) = 2. Find x
a) 16 b) 0 c) -1 d) None of these

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Example5
log10 x − 3 11− log10 x
Solve: ( )+( )=2
2 3

a) 10−1 b) 102 c) 10 d) 103

Example6
If log x y = 100 and log 2 x = 10, then the value of ‘y’ is:
a) 210 b) 2100 c) 21000 d) 210000

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Problems on Properties
Example1
If log (2a – 3b) = log a – log b then a= ____

Example 2:
1 1 1
+ log + log is equal
log𝑎𝑏 𝑎𝑏𝑐 𝑏𝑐 𝑎𝑏𝑐 𝑐𝑎 𝑎𝑏𝑐

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Example3
log3 8
The value of is
log9 16 log4 10

Example4
𝑎+𝑏 1 𝑎 𝑏
If Log ( ) = 2 (Log a+ Log b) then 𝑏 + 𝑎 is
4

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Exercise questions:

3𝑥−2
1. 5𝑥+6 is is the duplicate ratio of 2/3 then x is

(a) 2 (b)6 (c)5 (d)9

𝑎 𝑏 𝑐 𝑎+𝑏+𝑐
2. If 7 = 4 = 11 𝑡ℎ𝑒𝑛 𝑖𝑠
𝑐

a) 2 b)3 c)7 d)none

3. log2 log2 log216 = ?
(a)0 (b)3 (c) 1 (d) 2

𝑎 𝑏
4. If a : b = 9 :4 then √𝑏 + √𝑎

(a) 2/3 (b) 3/2 (c) 6/13 (d) 13/6

5. If a : b = 3: 7 then 3a + 2b : 4a + 5b = ?
(a) 27 : 43 (b)23 : 47 (c) 24 : 51 (d) 29 : 53
6. The ratio of no. of boys and the no. of girls in a school is found to be 15:32. How many boys
and equal no. of girls should be added to bring the ratio to 2/3?
(a) 20 (b)19 (c) 23 (d)27
7. log 9 + log 5 is expressed as _______
a) log (9/5) (b)log 4 (c) log (5/9) (d) log 45

8. If log 𝑎 √3 = 1/6 then the value of a is

(a) 81 (b)9 (c) 27 (d) 3

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 10. Mean proportion between 25 and 64 is
a)28 b)40 c)32 d)none
11. If A:B = 4:5 & B: C is 6:7 then A:B:C
a) 24:30:35 b) 6:9:10 c) 10:9:6 d) none
12. The fourth proportional of 6,8,9 is
a) 12 b) 32 c) 48 d) none of the above
13. If the ratio of two numbers is 5:7. If 5 is added to each number then the new ratio will
be 11:15 then the numbers are
a)50, 70 b)25,35 c)21,33 d)none
14. If x : y : z = 7 : 4 : 11 then (x+y+z)/z is
a)2 b)3 c)4 d)none
3 3 3 𝑎+𝑏+𝑐 3
15. If √𝑎 + √𝑏 + √𝑐 = 0 then the value of ( )
3
1 1
a) abc b) 27abc c) 𝑎𝑏𝑐 d) 9𝑎𝑏𝑐
16.The value of log 4 9. log 3 2 is :
a) 3 b) 9 c) 2 d) 1
3
17. The value of (log 𝑦 𝑥 . log 𝑧 𝑦 . log 𝑥 𝑧) is:
a) 0 b) -1 c) 1 d) 3
(x+y)
18. If x 2 + y 2 = 7xy, then log =
3
1 1 1
a) (logx + logy) b) (logx + logy) c) 3 (logx / logy) d) 3 (logx + logy)
2
10𝑥
19. If log x = a+b, log y = a-b then the value of log ( 𝑦 2 ) =
a) 1-a+3b b) a-1+3b c) a+3b+1 d) 1-b+3a
𝑥 𝑦 𝑍 3
20. If 𝑝 = q, 𝑞 = r and 𝑟 = 𝑝 , the the value of xyz will be:
a) 0 b) 1 c) 3 d) 6
𝑥 𝑦 𝑧
21. If 3 = 5 = 75 , then
2 1 1 1 2 1 2 1 1
a) x+y-z=0 b) 𝑥 + y = z c) 𝑥 + y = z d) 𝑥 + z = y
22. If x = 31/3 + 3−1/3 then find value of 3x 2 – 9x
a) 3 b) 9 c) 12 d) 1

Chapter 2- Equations:
Equation:
It is a mathematical statement that connects 2 expressions by an equals sign.

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Ex:-
𝑥+3 2x+5
=
6 3

Simple equation :
→ An equation having One unknown (variable). A Simple equation is of the form ax + b = 0
Where, x is a variable
Example1
If twice the age of Rajesh 10 years hence is subtracted from 6 times his present age then the
result would be equal to twice his present age. Find his present age.
Solution: Let the present age of Rajesh be x years
Given 6x- 2(x+10) = 2x
4x-20=2x
2x=20
x=10
Therefore the Present age of Rajesh is 10 years

Example2:
The numerator of a fraction exceeds the denominator by 3 And if 3 is added to to both
10
numerator & denomination for then the fraction becomes . Find the original fraction.
7

Example3
The number of students in each section of a school is 30. After admitting 60 new students, 5
new sections were started. If total number of students in each section now is 24, then the
number of sections initially were:

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(a) 6 (b) 10 (c) 14 (d) 18

Simultaneous Linear equations in 2 unknown's

General form
a 1 x + b1 y + c 1 = 0
a2 x + b2y + c2 = 0

Example
3x + 5y = 20 → ①
5x + 6y = 32 → ②
①x5&②x3
15x + 25y = 100
15x + 18y = 96
(-) (-) (-)
4
7y = 4 => y=7

① => 3x + 5y = 20
4
3x = 20-5y = 20 – 5 (7)
120 40
3x = => x =
7 7

Short cut

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Example1
The value of k for which the System of equations Kx +2y=5
10x +2 y = 1 has no Solution is
a) 5 b) 10 c) 6 d) 𝑛𝑜𝑛𝑒

Example2:
A man sells 6 radios & 4 televisions for Rs 18,480. If 14 radios & 2 televisions are sold for the
same amount, what is the price of television.
а) Rs 1848 b) Rs 840 c) Rs 1680 d) Rs 3360

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Quadratic Equation:
→ A polynomial in 'x' with degree 2.

General form
ax2 + bx + c = 0
where a, b, c are constants
→ There are 2 roots for x for a quadratic equation
Solution to a quadratic equation

a) Factorization method
b). Formula method.

a) Factorization method

Example:-
x2 +7x+12=0
x²+4x+3x+12= 0

x (x+4) + 3(x+4)

(x+4) (x+3) = 0

x+ 4 = 0 or x+3=0

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x=-4 or x = -3
Solution to quadratic equation using formula
−𝑏±√𝑏 2 −4𝑎𝑐
x= 2𝑎

Example:
x2+7x+12=0
a = 1 b = 7 c = 12
−𝑏±√𝑏 2 −4𝑎𝑐
x= 2𝑎

−7±√72 −4(1)(12)
= 2(1)

−7±√1 −7±1
= =
2 2

−7±1
x= 2

−7+ 1 −7− 1
X= or
2 2

X = -3 or x = -4
Nature of the root for the equation ax2+bx+c=0

1) If b2 – 4ac = 0, then the roots are real & equal.

2) If b²-4ас> 0 & a perfect square, then the roots are real, distinct & rational

3) If b²-4ас> 0 & not a perfect square then the roots are real, distinct & Irrational

4) If b²-4ac < 0 then the roots are imaginary.

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Example1:
Find the nature of the roots for the equation x²+6x+8=0

Ехаmple2
The quadratic equation x2 – 4kx +32=0 will have equal roots, then the value k is.

Construction of quadratic equation when the roots α & ꞵ are given

x²- (α +ꞵ) x + α ꞵ= 0
Example:-
Find the quadratic equation whose roots are 4 & -3.

Note.:-

35 | P a g e
1. Sum of the roots of a quadratic equation
−𝑏
α+ꞵ= 𝑎

Where α & ß are the roots.

𝑐
2. The product of the roots =) α ꞵ = 𝑎

3. If One root the quadratic equation is P+ √𝑞 then other root will be P- √𝑞

1
4) If one root is reciprocal to the other then [α ꞵ = 1] (:. α α = 1)

5)If two roots are in the ratio α: ꞵ then

αꞵ b² = (α + ꞵ )2 ac
Note: Same formula can be used for one root double the other (where the ratio is 1:2)
One root is triple the other (where the ratio is 1:3) and so on…
9) The difference between the roots

α -ꞵ = √(α + ꞵ )2 − 4α ꞵ

Example1
If one root of a quadratic equation is 2-√3, then the quadratic equation is
a) x²+4x-1 =0 b) x²-4x-1=0
c) x² + 4x+1=0 c) none

Example2
If one root is reciprocal to the other for the equation
2x2 -14x+k=0 then K= ___

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Example3:
If α & ꞵ the roots of the equation
2x2 +3x+7=0, then the value of α ꞵ-1 + ꞵ α -1 is
a)2 b) 3/7 c) 7/2 d)- 19/14

Example 4
If α & ꞵ are the roots of the equation x²+7x+12=0
then the equation whose roots are (α -ꞵ)2 & (α +ꞵ)² is.
a) x²-14x +49=0 b) x²-24x +144=0
c)x²-50x+ 49=0 d) x²-19x+144=0

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Example5:
If α & ꞵ are the equation
2x2 – 4x – 1 = 0 then find the value of
α2 ꞵ2
+ is
ꞵ α

Problems on infinite series

Example1:-

The value of √42 + √42 + √42 + ⋯ … … .∞

a)7 b) 8 c) 9 d) none

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Example2:-

The value of √30 + √30 + √30 + ⋯ … … .∞

a)-7 b) -8 c) 6 d) none

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Cubic equation
→ A polynomial in x having degree 3 (highest power of x is 3).
General form
ax3 + bx²+ cx +d = 0
−𝑏
The Sum the roots = 𝑎
𝑑
The product of roots = -
𝑎

Example1:
The roots of the Cubic equation.
x3 -7x+6=0 are
a) (1,-2,3) b) (1,-2,-3)
c)(1,2,-3) d) (1,-2,-3)

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Example2:
The roots of the of equation x3 + x²-x-1=0 are
a) (1,1,1) b) (1, -1,1) c) (1,-1, -1) d) none

Example3:
Find the roots the equation
x3 – 6x2 + 11x -6 = 0
a) (1,2,3) b) (-1,2,5)
c) (1, -2,3) d) (1,2,-3)

PRACTICE PROBLEMS

𝑥 1−𝑥 1
1. On solving √1−𝑥 + √ = 2 6, we get one value of x as:
𝑥

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 4 1 2 3
(a) (b) 13 (c)13 (d) 13
13

2. If roots of the equation 𝑥 2 + 𝑥 + 𝑟 = 0 are ‘α’ and ‘β’and α3 + β3 = − 6. Find the value of
‘r’?
−5 7 −4
(a) (b) 3 (c) 3 (d) 1
3

3. If one root of the Equation p𝑥 2 + 𝑞𝑥 + 𝑟 = 0 is r, then other root of the equation will be:
(a) 1/q (b) 1/r (c) 1/p (d) 1/(p+q)
4. If the ratio of the roots of the Equation 4𝑥 2 − 6𝑥 + 𝑝 = 0 is 1 : 2, then the value of p is:
(a) 1 (b) 2 (c) -2 (d) -1
5. The present age of a man is 8 years more than thrice the sum of the ages of his two grandsons
who are twins. After 8 years, his age will be 10 years more than twice the sum of the ages of his
grandsons. The age of a man when his grandsons were born was:
(a) 86 years (b) 73 years (c) 68 years (d) 63 years
6.If the roots of the equation 4𝑥 2 −12𝑥+𝑘=0 are equal, then the value of k is:
(a) -3 (b) 3 (c) -9 (d) 9

7.If α + β = -2 and α β = -3, then α, β are the roots of the equation, which is:
(a) 𝑥 2 −2𝑥−3=0 (b) 𝑥 2 +2𝑥−3=0
(c) 𝑥 2 +2𝑥+3=0 (d) 𝑥 2 −2𝑥+3=0
8.If α, β are the roots of the equation x²+7x+12=0 then the value of α ²/ β + β ²/ α is
a)(144/49) +(49/144) b)(7/12) +(12/7) c)-91/12 d)none

9.If the root of the equation are α and 1/ α then the quadratic equation will be
a) α x²- (α ² +1)x+ α =0 b) α x²- (α ² +1)x+ 1 =0
c) α x²- α ² x+ 1 =0 d) none
1
10.If x =5+2√6 then the value of x²-10x+1

a)0 b)10 c)1 d)none

11.Find the value of K so that x =2 is a root of the equation 3x² – 2kx + 5 = 0

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(a) 17/4 (b) 4/17
(c) –17/4 (d) –4/17

12.The roots of the equations 4𝑥 8𝑦 =128 3𝑥 /27𝑦 =1/3

a)2,1 b)-2,1 c) 2,-1 d)none

13.The roots of the equations 𝑥 3 + 9𝑥 2 -x-9=0 are

a)1,-1,-9 b)1,1,9 c)1,-1,9

14Find the condition that one roots is double the other of a 𝑥 2 +bx + c = 0

a)2 𝑏 2 = 3ac (b) 𝑏 2 = 3ac

(c) 2 𝑏 2 = 9ac (d) 2 𝑏 2 > 9ac

15.On solving m+√𝑚 =6/25 m works out to be

a)2/25 (b) 1/25
(c) 3/25 (d) 1

16.Solving equation 3 𝑔2 –14g + 16 = 0, we get roots as

(a) 0 (b) ±5
(c) 8 and 2/3 (d) 2 and 8/3

17. If 2 𝑥 2 –(a+6)2X+12a = 0 then roots are

(a) 4 & a2 (b) 6&a
(c) 3 & 2a (d) 6 & 3a

18.The rational root of the equation 0 = 2 𝑝3 – 𝑝2 – 4p + 2 is

(a) –2 (b) 2 (c) ½ (d) –½

Chapter 3- Linear Inequalities

Inequality :-
These are special mathematical Symbols used to define boundaries for a variable. For example,
In India the eligibility for citizens to vote in an elections is minimum age of 18 years (i.e atleast
18 years).

43 | P a g e
 x + y = 9 (b) x + y ≤ 9 x ≥ 0, y ≥ 0 (c) x + y ≥ 9 x ≥ 0, y ≥ 0 (d) none of these
7. On the average experienced person does 5 units of work while a fresh one 3 units of work
daily but the employer has to maintain an output of at least 30 units of work per day. This
situation can be expressed as
(a) 5x + 3y ≤ 30 (b) 5x + 3y >30 (c) 5x+3y ≥ 30 x ≥ 0, y ≥ 0 (d) none of these
8.The rules and regulations demand that the employer should employ not more than 5
experienced hands to 1 fresh one and this fact can be expressed as
a) y ≥ x/5 (b) 5y ≤ x (c) 5 y ≥ x (d) none of these

Chapter 4- Mathematics of Finance

Time value of Money :
Money has value with respect to time. i.e the value of money changes with respect to time.
If we consider the worth of Rs 10000 today & the worth of Rs 10,000 after 3 years, then the
worth of Rs 10,000 is more than the worth of Rs 10,000 after 3 years. as the value of money
decreases with time due to inflation.
:. Keeping money with us for longer duration is not advisible as it is not safe & also the value
decreases due to time. So the concept of investment was introduced to provide the
Compensation (along with little profit) for the reduction in the value of money.

50 | P a g e
The first of this investment schemes was based on Simple Interest.

Simple Interest (SI),

Here the Sum of money invested (principal) doesn't change
Consider an example of Rs 10,000 invested for 3 years at SI rate of 10% pa.

__________|_______________|________________|
0 1 2 3

From the above figure we can Observe that the principal (p) at the beginning is 10,000 & the SI
obtained for the first year is 1000 ( 10% of 10,000).
At the end of 1st year the principal (P) = 10,000 (as it remains same) and SI for the Second year
is 1000 ( 10% of 10,000 & also so on.
• The total SI accrued for 3 years is 1000 +1000 + 1000 = 3000 and Amount received at the end
of 3 years = 10,000+ 3000
= 13,000
Formula for SI
SI = PTR/100

Where P → principal
T → Time (in years)

R → SI rate pa (per annum)

Amount

Amount (A) = P + SI

Problems on SI
Туре 1:-

51 | P a g e
To find SI and Amount when P, T & R are given.

Example 1:
P=25000 R=13.5 % and T= 2 years 8 months. Find SI and amount

Amount = P+SI = 25000+9000=34000

Example 2:
P=30000 R=8.5 % and T= 6 years 3 months. Find SI

Туре 2:-
To find P, when A , T and R are given
Example1 :
Find the sum of money which amounts to Rs.3720 in 4 years at 6% pa SI

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Example 2
A Certain sum of money amounts to Rs. 650 in 6 years at 5% pa SI. Find the sum

Example 3
A Certain sum of money amounts to Rs. 15,120 in 4 years at 6.5% pa SI. Find the sum

TYPE-3
a)To find R. when A, P&T are given.
b) To find T, when A , P & R are given
Example 1
Rs 8000 amounts to Rs 10000 in 2 years at a certain SI rate, Find the SI rate pa.

53 | P a g e
Example 2
In what time Rs 15000 amounts to Rs 18000 at 5% pa SI.

Example 3
At what SI rate per annum will Rs 6000 amounts to Rs.9780 in 7 years

54 | P a g e
Туре 4
→ When 2 amounts (in terms of principal ) and Time in the first Case are given then to
find the time in the second case.
Example 1
A Certain sum of money doubles itself in 6 year as per SI. In what time it becomes 4 times of
itself.

Example 2:
A certain sum of money becomes 4 times of itself in 15 years as per SI.
In what time it become 8 times of itself

Example 3:
A certain sum of money becomes 3.5 times of itself in 10 years as per SI.
In what time it become 8.5 times of itself

55 | P a g e
Type 5:-
When 2 Amounts (interms of Rs) and time durations are give then to find P & SI rate pa
𝑺𝑰 𝒇𝒐𝒓 𝟏 𝒚𝒆𝒂𝒓
Note :- SI rate pa = x 100
𝑷

Example 1
A certain sum of money amounts to Rs 6900 in 3 year & Rs 7500 in 5 years as per SI. Find the
sum and SI rate Pa.

56 | P a g e
Example 2
A Certain Sum of money amounts to Rs 26,400 in 4 years and Rs 31,200 in 7 years as per SI.
Find the Sum and SI rate pa.
Short cut

Example 3
A Certain Sum of money amounts to Rs 692 in 2 years and Rs 800 in 5 years as per SI. Find the
Sum and SI rate pa.

Type 6:
when SI rate pa are different for different years. Then to find SI
(i) when principal is same
𝑃
Total SI = 100 (T₁R₁ + T₂ R₂ + T3 R3 + ………)

ii) when principal are different

𝑃1 𝑇1 𝑅1 + 𝑃₂𝑇₂ 𝑅₂ + −−
Total SI = 100

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Example 1
Mr. X invested Rs 30000 at 7% pa SI for first 3 years, 8% Pa SI for next 2 years, and 10% pa
for the next 2 years. Find the SI accrued..

Example 2
1
Out of Rs 1,00,000 Mr. Y invested 5th of the money at 5% pa SI for 4 years, ½ of the money
at 6% pa SI for 3 years & remaining at 8% pa SI for 2 year. Find the for SI accrued.
Solution: P1 = 1/5× 𝟏𝟎𝟎𝟎𝟎 = 𝟐𝟎𝟎𝟎𝟎 , T1 = 4 R1= 5%
P2= 1/2× 𝟏𝟎𝟎𝟎𝟎 = 𝟓𝟎𝟎𝟎𝟎 T2= 3 R1= 6%
P1 = 30000(remaining amount) T3 = 2 R1= 8%
𝑷𝟏 𝑻𝟏 𝑹𝟏 + 𝑷₂𝑻₂ 𝑹₂ +𝑷₂𝑻₂ 𝑹₂
Total SI = 𝟏𝟎𝟎

= 17800

Туре 7
To find 'T when an amount (in terms of P) & SI rate pa are given.
Formula
𝑇𝑜𝑡𝑎𝑙 𝑆𝐼 𝑟𝑎𝑡𝑒
T= SI rate pa

Note:
For this type of Problems P is taken as 100%
The Total SI rate is always 100%. less than amount.

58 | P a g e
If A=2P=200%
Then the total SI rate is 100%.
If A= 4P = 400%
Then the total SI rate = 300%..

Example 1:
A certain sum of money triples itself at 5% pa SI. Find the time taken for the same.

Example 2:
The SI on a certain sum becomes 0.125 times of itself at 6.25% pa. Find the time taken

Example 3:
A certain sum of money 5 times of itself at 16% pa SI. Find the time taken for the same.

Example 4:
The SI on a certain sum becomes 9/16 times of itself at certain rate of SI. Find the SI rate pa if
R=T.

59 | P a g e
Type 8:
Problems on two SI’s
Example 1
The SI on Rs 1000 at 6% pa for a certain time duration is 30 rupees more than SI on the same
sum at 5% pa for the same time duration. Find the time duration.

Example 2
The SI on a on certain sum at 6% pa 4 years is 450 rupees for more than the SI on same sum at
5% pa for 3 years.
Find the sum.

60 | P a g e
Compound Interest (CI)
Note: P changes at every compounding

Consider an example of Rs 50,000. invested for 3 years at CI rate of 12% at pa Compounded

annually
|______________|_______________|________________|
0 1 2 3

Formula for CI
CI = P [(1 + i)n -1 ]
Where,

P → principal.
i → interest rate (fractional value)

n → no. of Compoundings or number of Conversion periods

Formula for amount

A = P + CI
A = P + P [(1+i)n – 1]
= P+P (1 + i)n - P
A = P(1+i)n

61 | P a g e
This formula is also referred as appreciation formula.

Types of compoundings & Corresponding Conversions

(i) Annual (yearly) Compounding
→P changes once in a year.
n = no. of years
i = interest rate p.a.
(ii) Semi annual (half yearly) Compounding
→P. changes twice in a year
n = 2 x no. of years
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑝𝑎
i= 2

(iii) Quarterly compounding

→P changes 4 times in a year.
n = 4 X No. of years
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑝𝑎
i= 4

(iv) Monthly compounding

→P changes 12 times in a year.
n =12 x no. of years
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑝𝑎
i= 12

Problems on CI
Type 1
Problems on CI &.A. (when P. i & n are given)
Example 1
Find the CI & A if
P = 30,000 i= 12% pa time = 3 years
Compounded (i) Annually

62 | P a g e
(ii) Semi-annually
(iii) Quarterly
(iv) Monthly

Example2
A time by which a sum of money would double itself at 5% pa CI is
a)14.2 years b)14 years c)12 years d)15

Example3:
In what time will Rs.1,00,000 amount to Rs.1,26,677 at 6% per annum, when the interest is
compounded semi-annually?(Given :(1.03)8 = 1.26677]

63 | P a g e
(a) 8 years (b) 4 years (c) 6 years (d) none

Example4:A sum of money compounded annually becomes Rs.8450 in two years and Rs.10985
in three years. Find the rate of interest per annum.
(a) 30% (b) 20% (c)40% (d) 10%

Note: If the difference between the time periods is more than 1 year, then the short cut is
𝐴2
= (1 + 𝑜𝑝𝑡𝑖𝑜𝑛)𝑛2 −𝑛1
𝐴2
Example5:
A sum of money compounded annually becomes Rs.17280 in two years and Rs.20736 in three
years. Find the rate of interest per annum.
(a) 30% (b) 20% (c)40% (d) 10%

64 | P a g e
туре 2
To find A when P, different rate of interests for different years are given..
Formula
A=P(1+i1)(1+i2)(1+i3)……
Example:-
The present population of a town is 70,000. If it grows at 4%, 5% & 6% pa for 1st, 2nd & 3rd
year respectively. then find the population of the town at the end of 3rd year.

Туре 3
When 2 amounts (in terms of P) and time period of first Case is given then to find time period
for the 2nd case.
Example 1
A Certain sum of money doubles itself in 4 years as per CI. In how many years it will become 16
times of itself.

65 | P a g e
Example 2
A Certain Sum of money becomes 8 times of itself in 12 year as per CI. In how many year it
would become 128 times of itself.

Effective rate of interest (ERI)

It is the rate of interest Calculated for 1 year considering the given. type of compounding so that
we can compare it with nominal rate of interest (NRI)
ERI=NRI for annual Compounding.
ERI > NRI for semi-annual quarterly and for monthly compounding
Formula for ERI
ERI = (1+i)n - 1
% ERI = [(1+ i)n – 1] X 100

66 | P a g e
Note:-
ERI is independent of principal..

Example1 :-
Find the Effective rate of interest corresponding to a nominal interest rate of 12% pa
Compounded monthly

Example2:
The effective rate equivalent to nominal rate of 8% compounded quarterly is :

Depreciation:
The value of assets like machinery, furniture, buildings etc. will reduce with time Such assets are
said to be depreciating assets.
For depreciating assets the Future value (A) will be less than the present value (P).
i,e A<P.
Formula
A = P (1- i)n
where, A → Future value or Scrap value
P → present value or Cost price

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Example 1:
A machine with cost price of Rs 3,00,000 depreciates at 10% pa Find its scrap value if the life of
the machine is 6 years.

Example 2:
A machine depreciates at 20% of its value at the beginning of the year. The cost and scrap value
realized at the time of sale being ₹12000 and ₹3145.728 respectively. For how many years the
machine can be put into service.
a)5 years b) 7 years c)6 years d)none

Problems on SI and CI
Example 1:
The difference between SI and CI for 2 years on a certain sum is Rs.25.2 at 6% pa.

68 | P a g e
Find the sum

Example 2:
The difference between SI and CI for 2 years on a certain sum is Rs.64.8 at 9% pa.
Find the sum

Example 3
The difference between SI and CI for 2 years on a certain sum is Rs.172.8 at 12% pa.
Find the sum

69 | P a g e
Annuity
It is a fixed amount to be paid regularly for specified number of periods.
Types of Annuity
(i) Annuity Regular (ordinary Annuity)
It is a fixed amount to be paid regularly at the end of each year / half year | quarter month, for
specified Number of periods
Ex:- Rent, EMI etc

(ii) Annuity Immediate (Annuity due)

It is a fixed amount to be paid regularly at the beginning of the of year / half year / quarter /
month for specified number of periods.
Ex- RD, Insurance premiums, etc
Future value an annuity :-
If a is the fixed amount paid regularly for ‘n’ number periods at rate of ‘i’ % per annum. then its
future value
a) For annuity Regular
𝑎[(1+𝑖)𝑛 −1]
Future value of Annuity Regular (FV of AR) is = 𝑖

b) For annuity Due (AD)

𝑎[(1+𝑖)𝑛 −1]
FV of A.D = x (1+i)
𝑖

Relationship between Future value & present value

𝐹𝑉
FV = PV(1+i)n or PV = (1+𝑖)𝑛

Present value of an annuity

If ‘a’ is the fixed amount to be paid regularly for 'n’ number of periods at 'i' % pa. then
(a) present value of annuity regular
(1+𝑖)𝑛 −1
PV of AR = a [ ]
𝑖(1+𝑖)𝑛

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b) Present value of Annuity due
(1+𝑖)𝑛−1 −1
PV of AD = a [ ]+a
𝑖(1+𝑖)𝑛−1

Default annuity is A.R (If not mentioned)

Problems on FV, PV & relationship between FV & PV

Example 1:
Rs 5000 is invested every year at 12% pa for 10 years. Find its Future value.

Example2:
Mr. Bhuvan invests Rs 10000 at the beginning of every year for the next 11 years. Find the PV
of this annuity. If the interest rate ра is 8% ра CI.

Example 3:

71 | P a g e
If the Refrigerator Costs Rs 40,000 today. Then what would be its Cost at the end of 2 year if
the rate of interest is 6% pa.

Example 4:
If a car costs Rs 20,00,000 after 10 years. Then what would be its today’s cost if the rate of
interest is 7% pa

Sinking fund
→ It is the fixed amount to be kept apart (as an investment) from the Income or profit in
order to accumulate a lump sum amount required for the future.

Example1
Arun wishes to buy a machine after ten years, whose estimated cost is Rs 5,00,000. If the rate of
interest for his investment is 8% pa. Find how much he has invest every year.

72 | P a g e
Example2:
Karan wants to accumulate Rs.20 lakhs to purchase a plot at the end of 12 years. How must he
has to invest every year at 12 % to achieve this goal

Applications of Annuity

Leasing :-
Leasing actually means renting.
If we have to make a decision between purchasing a machine & taking a machine on leasing
basis.
Then we need to Compare their Present values.
i.e purchasing cost of a machine & pv of leasing.
If PV of leasing < PV of purchasing then leasing is preferred
If PV of leasing > PV of purchasing then purchasing is preferred
If PV of leasing = PV of purchasing then both are equally good
Example1:-
A machine can be obtained either by purchasing at Rs 75,000 оr by leasing, at a rental of 22000
per year for the next 4 years (useful life of machine) If the rate of interest is 11 % pa.
Find whether the machine can be Purchased or not

73 | P a g e
Example2:-
A person wants to lease out a machine costing Rs. 8 lakhs for a period of 12 years at a annual
rental of Rs. 1 lakh . Suppose the rate of interest is 12% pa, compounded annually. To whom
this agreement is favourable? a) For lessee b) For lessor c) Not for both d) Can’t be
determined

Investment Decision:
If PV of cash inflow ( returns) ≥ PV of cash outflow (Investment), then the investment is good
otherwise it’s a loss.
Net present value (NPV)
NPV = PV of Cash inflow - PV of cash out flow
An Investment is said to be good
If NPV ≥ 0
Example1:-
A machine is purchased at Rs 80,000. If it Contributes Rs 20,000 every year. At 12% pa for 5
years. Is it a good investment?

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Example2:-
A machine can be purchased for Rs 65,000. Machine will contribute Rs.15,000 per year for next
6 years. Assume borrowing cost is 10% per annum. Determine whether machine should be
purchased or not : (a) Should be purchased (b) Should not be purchased
(c) Can’t say about purchase (d) None of the above

Valuation of bond:
A bond is a debt security in which the issuer owes the holder a debt & is obliged to repay the
principal & interest. Bonds are generally issued for a fixed term longer than one year.
Example
An investor intends to purchase a 3 year Rs 3000 par value bond having nominal interest rate of
8% pa. At what price the bond may be Purchased now if it matures at par & investor requires a
rate of return of 10% pa.

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Perpetuity
If is a fixed amount (receipt amount) paid regularly indefinitely.
Types of perpetuity
(1) Normal perpetuity (multi period perpetuity)
𝑅
PV of multiperiod perpetuity = 𝑖
where
R → Fixed payment (Receipt amount)
i → interest rate.
2) Growing perpetuity
A stream of cash flow that grows at a constant rate forever is said to be a growing perpetuity.
𝑅
PV of growing perpetuity = 𝑖−𝑔
where. g is growth rate

Example:-
Find the present value of perpetuity of Rs 6000 payable monthly at 8 % p

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Compound annual growth rate (CAGR)

CAGR is of term used to describe the growth over a period of time of Some element of the
business, for example the revenue, income etc.
1
𝑉 𝑡 −𝑡
CAGR = [𝑉𝑛] 𝑛 𝑜 -1
𝑜

1
𝑉 𝑡 −𝑡
% CAGR = [[𝑉𝑛] 𝑛 𝑜 − 1] x 10
𝑜

where
tn → End period
to → Beginning period
Vn → value Corresponding tn
Vo → Value corresponding to
Note: Students are required to do option hitting method using the formula as below
𝑉𝑛
(1 + 𝑜𝑝𝑡𝑖𝑜𝑛)𝑡𝑛− 𝑡0 =
𝑉0

Example1:-
Find CAGR

Year 2013 2014 2015 2016 2017

Revenue 200 250 260 350 400

(in lakhs)

a)8.92% b)18.92% c)28.92% d)38.92%

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Example:-
Find CAGR

Year 2018 2019 2020 2021 2022

Income 60 65 75 90 100
(in lakhs)
a)13.62%
b)18.62%
c)23.62%
d)33.62%

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Practice questions
1. The future value of an annuity of Rs.5000 is made annually for 8 years at interest rate of
9% compounded annually (given that (1.09)8 = 1.99256 ) is _____
(a)Rs.55142.22 (b) Rs.65142.22 (c)Rs.65532.22 (d)Rs.57425.22

2. The effective annual rate of interest corresponding to nominal rate 6%p.a payable half
yearly is (a) 6.06% (b) 6.07% (c) 6.08% (d) 6.09%
3. The cost of machinery is Rs.1,25,000/-. If it’s useful life is estimated to be 20 years and
the rate of depreciation of its cost is 10%p.a, then the scrap value of the machinery is
[given that (0.9)20 = 0.1215]
(a) Rs.15,187 (b) Rs.15,400 (c) Rs.15,300 (d) Rs.15,250
4. Mr. X invests ‘P’ amount at simple interest rate 10% and Mr. Y invests ‘Q’ amount at
compound interest rate 5% compounded annually. At the end of two years both get the
same amount of interest, then the relation between two amounts P and Q is given by:
41Q 41Q 41Q 41Q
(a) P = (b) P = (c) P = 100 (d) P = 200
80 40

5. If the difference of S.I and C.I is Rs.72 at 12% for 2 years. Calculate the amount.
(a) Rs.8,000 (b) Rs.6,000 (c) Rs.5,000 (d) Rs.7,750
6. If a simple interest on a sum of money at 6% p.a for 7 years is equal to twice of simple
interest on another sum for 9 years at 5% p.a. The ratio will be:
(a) 2:15 (b) 7:15 (c) 15:7 (d)1:7
7. By mistake a clerk, calculated the simple interest on principal for 5 months at 6.5%p.a
instead of 6 months at 5.5% p.a. If the error in calculation was Rs.25.40. The original sum of
principal was____
(a) Rs.60,690 (b) Rs.60,960 (c) Rs.90,660 (d) Rs.90,690
8. If the simple interest on Rs.1,400 for 3 years is less than the simple interest on Rs.1,800
for the same period by Rs.80, then the rate of interest is:
(a) 5.67% (b) 6.67% (c) 7.20% (d) 5.00%
9. Nominal rate of interest is 9.9% p.a. If interest is compounded monthly, What will be the
4033 12
effective rate of interest [ given(4000) = 1.1036 (approx)] ?

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(a) 10.36% (b) 9.36% (c) 11.36% (d) 9.9%
10. The S.I on a sum of money is 4/9 of the principal and the number of years is equal to the
rate of interest per annum. Find the rate of interest per annum?
(a) 5% (b) 20/3% (c) 22/7% (d) 6%
11. Simple interest on Rs.2,000 for 5 months at 16%p.a is _____
(a) Rs.133.33 (b) Rs.133.26 (c) Rs.134.00 (d) Rs.132.09
12. How much investment is required to yield an Annual income of Rs.420 at 7%p.a simple
interest.
(a) Rs.6,000 (b) Rs.6,420 (c) Rs.5,580 (d) Rs.5,000
13. Mr. X invests Rs.90,500 in post office at 7.5%p.a simple interest. While calculating the
rate was wrongly taken as 5.7% p.a. The difference in amounts at maturity is Rs.9,774. Find
the period for which the sum was invested:
(a) 7 years (b) 5.8 years (c) 6 years (d) 8 years
14. The difference between compound and simple interest on certain sum of money for 2
years at 4%p.a is Rs.1. The sum (in Rs) is:
(a) 625 (b) 630 (c) 640 (d) 635
15. A sum of money compounded annually becomes Rs.1,140 in two years and Rs.1,710 in
three years. Find the rate of interest per annum.
(a) 30% (b) 40% (c)50% (d) 60%
16. On what sum, difference between compound interest and simple interest for two years
at 7%p.a interest is Rs.29.4
(a) Rs.5,000 (b) Rs.5,500 (c) Rs.6,000 (d) Rs.6,500
17. In what time will a sum of money double itself at 6.25%p.a simple interest?
(a) 5 years (b) 8 years (c) 12 years (d) 16 years
18. What principal will amount to Rs.370 in 6 years at 8%p.a at simple interest?
(a) Rs.210 (b) Rs.250 (c) Rs.310 (d) Rs.350
19. The partners A and B together lent Rs.3,903 at 4% per annum interest compounded
annually. After a span of 7 years, A gets the same amount as B gets after 9 years. The share
of A in the sum of Rs.3,903 would have been:

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(a) Rs.1,875 (b) Rs.2,280 (c) Rs.2,028 (d) Rs.2,820
20. If a sum triples in 15 years at simple rate of interest, the rate of interest per annum will
be:
(a) 13.0% (b) 13.3% (c) 13.5% (d) 18.0%

Chapter 5- Permutations and Combinations

In simple terms

❖ Permutation:- Arrangement

❖ Combinations – Selection

Factorial of n (n! )
It is the product of first n natural numbers.
n! = n x (n-1) x (n-2) x ………. x 1
ex :- 5! = 5 x 4 x 3 x 2 x 1 = 120

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 The value of 0! = 1
1! = 1
2! = 2
3! = 6
4! = 24
5! = 120
6! = 720
7! = 5040
8! = 40,320
PERMUTATION
Arrangement of 'n' things taken 'r' at a time
n 𝒏!
Pr = (𝒏−𝒓)!

Note :-
➢ r≤n
➢ n cannot be 0. It must be natural number
➢ r must be a whole number.
➢ n
Pn= 𝒏!
➢ n
P0=1
➢ n
Pn= nPn-1
➢ n
Pn= 2! nPn-2
➢ n
Pn= 3! nPn-3
➢ n
Pn= 4! nPn-4
➢ last term of the expansion nPr is (n-r+1)

Linear Permutation
Type – 1
Permutation (without condition) of letters of the given word
𝑛!
=𝑛
1!𝑋 𝑛2 ! 𝑋 𝑛3 ! 𝑋………..

where,

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 n is no. of letters
𝑛1 , 𝑛2 , 𝑛3 𝑎𝑟𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡𝑖𝑚𝑒𝑠 𝑎 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑙𝑒𝑡𝑡𝑒𝑟 𝑟𝑒𝑝𝑒𝑎𝑡𝑠
Note: If there is no letter which is repeated then the number of arrangements of
the letters of the given word would be= 𝒏!
Example1
Find the number of arrangements of letters of the word, SANSKRIT
Total number of letters = 8
Total arrangements = 8 ! / (2 ! )
= 40320/2
=20160
Example: Find the number of arrangements of letters of the word, MATHEMATICS

Type 2
Problems with condition (Letters or digits)
Key points:
• Condition should be fulfilled first
• Or means +
• And means x
Exmaple1:

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 Find the number of arrangements of the letters of the word ‘SUCCESS’ such that the
vowels may occupy odd positions only.

Example2:
The letters of the word SILENT are arranged so that the vowels occupy even places
only. Find the number of permutations

Example3
How many numbers greater than a lakh be formed with the digits 4,6 ,6,7,0,8

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 Example4
How many 4 digit numbers greater than 5000 be formed using the digits 1,2,3,5,6,7,9

Example5
How many numbers not more than 10000 can be formed using the digits
1,2,3,4,5,6,7,8,9

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 Type 3 :-
Arrangements of n1 & n2 number of things in a row with a condition.
Example1:
There are 5 men and 5 women. In how many ways they can be arranged in a row such
that no 2 women are together.

Exampe2:
5 men and 4 women to sit a row in such a manner that women always occupy even
places. The number of such arrangements will be

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 Type 4:-
a)Arrangements of 'n' things such that 2 particular things are always together.
= (n-1)! 2!
Note :- If 3 things are always together = (n -2) ! 3!
b)
Arrangements of 'n' things such that 2 particular things are never together,
=(n-1)! (n-2)
Note: Never together = Total arrangements(without condition) – always together
Example1
Find the number of ways of arrangements of the letters of the word CAUGHT such that
the Vowels always together.

Example2
Find the number of arrangements of the letters of the word POVERTY such that the
Vowels are never together

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 Example3:
There are 5 books on Economics, 4 books on Statisics and 3 books on Computer
science. In how many ways can these be arranged on a shelf such that the books on
respective subjects are always together.

Example4
Find the number of arrangements of the word CALCULATOR such that vowels are
never together.

Example5
Find the number of arrangements of the letters of the word GIRAFFE such that the
vowels are never together.

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 Type 5 :-
a)number of ways of answering 'n' questions.
= 2n
Where, n is number of questions

b)Number of ways of answering at least 1 questions out of n questions = 2n – 1

c)Number of ways of answering n questions with one alternative = (2+1)n

Example1
There are 8 questions to be answered yes (or) No, In how many ways can these be
answered ?

Example2
A question paper consists of 12 questions, 7 of them are of accounts and the remaining
are Economics. In how many ways can these be answered such that the students needs
to answer atleast 1 question from each part

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 Circular Permutation [without condition]

We know that the arrangement of n things in a row(Linear arrangement)

= n!
Now the number of arrangements of n things in a circular manner
= (n-1)!
Example:
Find the number of ways of arrangement of 8 persons at a round table

Circular Permutation with condition

Example1:
In how many ways can 6 women & 6 men be seated at a circular table so that no 2
women are adjacent (together)

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 Note:
1. Number of arrangements of 'n’ pearls in a necklace (n flowers in a garland)
(𝑛−1)!
= 2!

2. Number of ways of arranging ‘r' things taken from n things such that one particular
thing is always included.
(n-1)
= r. P(r-1)
3. Number of ways of arranging ‘r' things taken from n things such that one particular
thing is always excluded.
=(n-1) Pr

Example1:
Find the number of arrangements of 5 things taken out of 12 things in which one
particular thing is always included.

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Example2:
Find the number of arrangements of 4 things taken out of 10 things such that
1particular thing is always excluded.

COMBINATION

Selection of 'r' things from 'n' things

n n
Cr = Pr (Note: r ≤ n)
r!
Some important results (Properties of combination)
• nCo = 1
• nC1 = n
• nCn = 1
• nCr = nCn-r
n
• Cr + nCr-1= (n+1)Cr
• Number of straight lines formed using 'n' points of which 'm' are collinear.
= n C 2 – mC 2 + 1
• The number of triangles formed using 'n points of which 'm' are collinear
= n C 3 – mC 3
• Number of matches played by n teams such that each team plays one match each against
other teams.
= nC2
• Note: If each team plays two matches each against other teams then total number of
matches would be = 2. nC2
• Number of handshake made by 'n' persons, Shaking hands with each other = nC2

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 • Number of quadrilaterals (or) parallelograms formed using set of ‘n’ parallel lines
intersecting with set of 'm' parallel lines.
= n C 2 X mC 2

Note:
Permutation
If nPr = nPs
Then r+s = 2n – 1

Combination
If nCr = nCs
Then r+s = n

Note:
No. of diagonals in a polygon = nC2 – n
Where, n is number of sides
Example:
A polygon as 44 diagonal find the no sides
a) 8 b) 9 c) 10 d) 11

Note:
Number of chords of a circle using n points = nC2
Number of points of intersection of n circles = nP2

Problems on Combination without condition

Example1:
A building contractor needs three helpers out of 10 men. in how many ways can these
selections take place?

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 Example2
The value of ∑5𝑟=1 6Cr

Example3:
5 seats of articled clerks are vacant in a chartered accountant firm. How many different
batches of candidates can be choosen out of 8 candidates.

Problem with Condition

Example1:
There are 5 men and 3 women in a group. Find the number of ways in which the
committee of 4 persons can be formed of them such that, the committee is to include at
Least 2 women

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Example2:
In how many ways can a selection of 8 persons can be made out of 4 teachers & 10
students Such that the selected members must include at least two teachers?

Practice problems

Problems on Permutation & Combination

1. If 6Pr = 24 6Cr, find r.
a) 4 b) 6 c) 2 d) 1
2. If Pr = Pr+1 and Cr = nCr-1 Then n = ?
n n n

a) 2 b) 3 c) 4 d) 5
3. A Code word is to consist of 2 Alphabets followed by 2 distinct digits from 1 to 9.
how many such codes are possible.
a) 6,15, 800 b) 46,800 c) 719500 d) none

4. How many words can be formed with the letters of the word ORIENTAL such that
A&E always occupy odd places
a) 540 b) 8770 c) 8640 d) 8480
18 18 r
5. If Cr = Cr + 2, find the value of C5 ?
a) 155 b) 50 c) 56 d) none
6. Number of ways of painting a face of cube by 6 Colours is
a) 36 b) 6 c) 24 d) 1

7. Find the number of arrangements in which letters of the word MONDAY be

arranged so that the words always begin with M and do not end with N.
a) 720 b) 120 c) 96 d) None

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 8. If six times the number of permutations of 'n' items taken 3 at a time is equal to
seven times the number of permutation of (n-1) items taken 3 at a time, then the
value of 'n' will be. a) 7 b) 9 c) 13 d) 21
9. Find the sum of all 4 digits number formed using the digits 2, 4, 6,8 number formed
using the digit 2,4,6,8.
10. The number of words from the letters of the word BHARAT, in which B and H will
never come together is
a)120 (b)360 c)240 (d) None of the above (2018 Dec)

11. If nPr = 720 and nCr = 120 then r is (2018 Dec)

(a) 4 (b)5 c)3 (d) 6

12. The value of N in

(a) 81 (b) 64
(c) 78 (d) 89 (2018 Dec)
13. A bag contains 4 red, 3 black and 2 white balls. In how many ways 3 balls can be
drawn from this bag so that they include at least one black ball? (2018 Dec)
(a) 46 (b) 64
(c) 86 (d) None of the above

14. If 11Cx =
11
C2x-4 then 7Cx will be (June 2019 )
(a) 20 (b) 21
(c) 22 (d) 23

1. Which of the following is not a correct statement (June 2019)

n
a) Pn = nPn-1
n
b) Pn = 2 ! nPn-2
n
c) Pn = 3 ! nPn-3
n
d) Pn = n ! n- 1Pn-1

16. How many number divisible by 5 of 6 digit can be made from the digit 2, 3, 4, 5, 6, 7
(2019 Nov)
(a) 120 (b) 600
(c) 240 (d) none

17. 5 boys and 3 girls are to be seated together such that no two girls are together (2019
Nov)

96 | P a g e
 (a) 14,400 (b) 2400
(c) 720 (d) None of these

18. Out of 6 Boys & 4 girls, Find the number of ways for selecting 5 member committee
in which there is exactly two girls ? (2019 Nov)
(a) 120 (b) 1440
(c) 720 (d) 71

19. if np5 :np3 is 2:1 than value of n is(2019 Nov)

(a) 2 (b) -5
(c) -2 (d) 5

20. A fruit basket contains 7 apples, 6 bananas and 4 mangoes. How many selections of
3 fruits can be made so that all 3 are apples? (2020 Dec)
120 ways (b) 35 ways (c) 168 ways (d) 70 ways

21. Out of 7 boys and 4 girls a team of a debate club of 5 is to be chosen. The number
of teams such that each team includes at least one girl is __________ (2020 Dec)
(a) 429 (b) 439 c) 419 (d) 441

22. From a group of 8 men and 4 women, 4 persons are to be selected to form a
committee so that at least 2 women are there on the committee. In how many ways can
it be done? (2020 Dec)
(a) 201 (b) 168 c)202 (d) 220

23. If nP4 = 20 nP2 were denotes the number of permutations n = ________ (2020
Dec)
(a) 4 (b) 2 (c) 5 (d) 7

24. If nP6 = 20 nP4 were denotes the number of permutations n = ________(2021 July)
a)5 b) 3 c) 9 d) 8

25.How many numbers of 7 digits can be formed using the digits 3,4,5,6,7,8,9 no digis
being repeated and are not divisible by 5 (2021 July)
a) 4320 b) 4690 c)3900 d) 3890

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 26.A person can go from A to B by 11 different modes of transport but is allowed to
return back to A by any mode other than the one earlier. The number of different ways,
the entire journey can be completed is…. (2021 July)
a)110 b) 1010 c) 95 d) 109

27.The number of ways 5 boys and 5 girls can be seated at a round table, so no two boys
are adjacent is (2021 July)
a)2550 b) 2880 c) 625 d) 2476

Chapter 6- Sequence and Series

Sequence :-
Orderly arranged numbers are said to be in sequence.
Ex 1 :- 5 10 15 20 25

Ex 2 :- 2 4 8 16 32
Series :-
Sum of the orderly arranged numbers is said to be a series.

98 | P a g e
 Ex :- 5 + 10 + 15 + 20 + ……..

Arithmetic Progression (AP)

A Sequence in which there exists a common difference is said to be an arithmetic
progression
General from of an Ap:
a, a+d, a+2d, ……a+(n-1)d

nth term of an AP
Tn = l = a+(n-1)d
Ex :- T5 = a+(5-1)d
= a + 4d

Sum of n term in AP:-

a) When last term is not given

𝑛
Sn = 2 [2a+(n - 1)d]
b) when first term & last term are given
𝑛
Sn = 2 (a+l)
where ‘l’ is last term

PROBLEMS OF VARIOUS TYPES

TYPE1:
To find ‘n’ when nth term, a & d are given.
Example1:
Find the number of terms of an AP having first term as 10, common difference as 5 &
last term as 200

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 Example2:
Find the number of terms of an AP having first term as 200 , common difference as 5
and last term as 400

TYPE2:
Sum of all natural numbers between the 2 given terms with a condition
Example 1:
Find the Sum of all natural numbers, between 1 and 300 which are exactly divisible by 5

Example 2;
Find the sum of all natural number between 10 and 500 which are exactly divisible by 4.

TYPE3:
To find rth term of an AP , when nth & mth terms are given.
Example:

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 The mth term of an Ap is n. nth term is m. Find its rth term.
a) m + n – r b) m + n + r c) m + n –2 r d) none of these

TYPE 4:
To find Sum of n terms when the middle term is given
Or
To find the middle term when the sum of n terms is given

Example 1:
The 6th term of an Ap is 15. Find the Sum of its first 11 terms

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 Example 2:
The 16th term of an Ap is 40. Find the Sum of its first 31 terms

Example3:-
If the Sum of 7 terms in Ap is 35, then find the fourth term

Example4:-
If the Sum of 5 terms in Ap is 60, then find the third term

TYPE 5:
To find the sum of n terms when the sum of the two terms which are equidistant from the
middle term is given:
Example1 :
The Sum 5th & 7th terms of an AP is 30. Find the Sum of its 11 terms.

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Example 2:
The Sum 9th & 11th terms of an AP is 50. Find the Sum of its 19 terms.

TYPE 6
To find nth term when sum of ‘n’ terms (in terms of n) is given :
Tn = Sn – Sn-1
T1 = S1
T2 = S2 - S1
T3 = S3 – S2 ……
Ex :- The sum of ‘n’ term in AP is 3n2 + 4n. Find
a) First term
b) Eighth term

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TYPE 7:
To Insert ‘n’ Am’s between 2 terms :
Let the n Am’s be a, a+d, a+2d, …….. a+(n-1)d
:. The 2 terms given would be
a-d & a+nd
Example: Insert 3 Am’s between 6 & 18.

Type8:
To find common difference and first term when two particular terms in AP are given.
Ex:
If the 10th term and 19th terms of an AP are 72 and 108 respectively. Find the common
difference and the first term.

Geometric progression (GP)

→ A Sequence in which there exists a Common ratio is said to be a Geometric progression.
→ General form of GP
a, ar, ar2, ar3, …….. arn-1

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where, n → no. of terms.
a → first term
𝑇 𝑇3
r → Common ratio = 𝑇2 = = ……….
1 𝑇2

nth term of GP:

nth term GP. Tn = arn-1
Ex:- T3 = ar3-1
= ar2

similarly,
T5 = ar4
T10 = ar9

Sum of n terms in GP:

𝑟 𝑛 −1
Sn = a ( 𝑟−1 ) for r>1

1−𝑟 𝑛
Sn = a ( 1−𝑟 ) for r<1

Note:- Sum is not defined for r=1

PROBLEMS:
Type1: (Based on Sn )
Example :- Find the Sum of first 10 terms of the Sequence.
3,6,12,…….

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Example 2 :-
The Sum of ‘n’ terms of the Series
3,9, 27 ………. is 9840. Find the number of terms (n)
a)8 b)9 c)10 d)none

TYPE 2
Sum of Infinite terms in GP: ( 𝑆∞ )

𝑎
𝑆∞ = 1−𝑟 (r<1)

Note:- 𝑆∞ is not defined for r>1

Example 1
Find the sum of infinite terms of the series
1 1 1
1 + 4 + 42 + 43 + ⋯

Example 2
Find the sum of infinite term of the series
9 27
3+ 𝑦 + 𝑦 2 +……..

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TYPE 3
Sum of infinite terms with Combination of Ap & GP.
𝑎 𝑑𝑟
𝑆∞ = 1−𝑟 + (1−𝑟)2

Example.
The sum of the series.
3 5 7
1 + 5 + 52 + 53 + ⋯

TYPE 4:
Special Series

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TYPE 5:
To find the product of n terms using the middle term of GP
Example
If the 5th Term of a GP is 3 then find the product of its first 9 terms

108 | P a g e
TYPE 6:
Problems on the Combination of AP, GP & HP:
Note:

→ For the 3 terms a, b, c to be in AP

b= (a+c)/2
Ex: 1, 2 , 3

→ For 3 terms a, b, c to be in GP b= √𝑎𝑐

Ex: 2 , 4 , 8
→ For 3 term a, b, c to be in HP
2𝑎𝑐
b=
𝑎+𝑐

Ex: 6, 8, 12 or
12, 8, 6
→ If a² b ² c² are in AP Then let a, b, c as 1, 5, 7
Example1 :
If x, y, z are in GP then the terms
(x²+y²), (xy+yz), (y²+z²) are in
a) AP b) GP c) Hp d) none

Example 2

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If a, b, c are AP Then the value of a-b+c
a) a b) -b c) b d) c

Example 3
If a², b ², c² are in AP then b+c, c+a & a+b are in
a)AP b)HP c)GP d) none

Example4:
A man employed in a company is promised a salary of Rs.3000 every month for the first year
and an increment of Rs.1000 in his monthly salary every succeeding year. How much does the
man earn from the company in 20 years?
a) Rs. 30,00,000 b) Rs. 27,50,000 c) Rs. 19,10,000 d) Rs. 7,90,000

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Example5:
If a,b,c are in A.P and x,y,z are in GP, then the value of x(b-c). y(c-a).z(a-b) is
a) 1 b) 0 c) b(c-a) d)none

Example6:
The arithmetic mean of the squares of first 2n natural numbers is :
1 1 1 1
a) 6 (2n+1) (4n-1) b) 6 (2n-1) (4n-1) c) (2n-1) (4n+1) d) (2n+1) (4n+1)
6 6

Example7:
If S be the sum, P the product and R is the sum of reciprocals of n terms in GP then P2Rn = ….
a)S2n b) Sn c) S -2n d) S-n

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Practice problems on AP & GP
1. The sum of n terms of the series 1 + (1+3) +( 1+3+5) +……. Is
𝑛(𝑛+1)(2𝑛+1) 𝑛(𝑛+1)(𝑛+2) 𝑛(𝑛+1)(2𝑛+1)
a) b) c) d)none of these
6 6 3

2. The third term of GP is 2/3 and the 6th term is 2/81.. Find its first term
a)2 b)6 c)9 d)1/3
3. The sum of the series –8, –6, –4,... terms is 52. The number of terms is
(a) 10 (b) 11
(c) 13 (d) 12
4.The value of K for which 7K+3 , 4k-5 and 2K+10 are in AP is
a)-13 b)13 c)23 d)-23
5.The pth term of an Ap is q. qh term is p. Find its rth term.
a) p + q – r b) p+q + r c) p + r –2 r d) none of these
6.If 2 + 6 + 10 + 14 + 18 + + x = 882 then the value of x ( June 2019)
(a) 78 (b) 80 (c) 82 (d) 86
7.In a G.P, If the fourth term is ‘3’ then the product of first seven terms is ( June 2019)
8. The Ratio of sum of n terms of the two AP’s is (n +1) : (n–1) then the Ratio of their mth
terms is( June 2019)
(a) (m + 1) : 2m (b) (m + 1) : (m –1)
(c) (2m –1 :(m + 1) (d) m : (m – 1)
9.If Y = 1+x + x2 +…….. ∞ then x = ( June 2019)

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a)(y-1)/y b )(y+1) /y c )y/(y+1) d) y/(y-1)
10.The 20th terms of arithmetic progression whose 6th term is 38 and 10th term is 66 is ______
(a) 136 (b) 118 c)178 (d) 210
11.Divide 69 into 3 parts which are in A. P and are such that the product of first two parts is 460
(a) 20, 23, 26 (b) 21, 23, 25 c)19, 23, 27 (d) 22, 23, 24
12.Three numbers is G.P. with their sum is 130 and their product is 27,000 are ____
(a) 90, 30, 10 (b) 10, 30, 90 (c) (a )& (b) Both (d) 10 , 20 ,30
13.The number of terms of the series 5+7+9+…. Must be taken such that the sum may be
equal to 480
a) 20 b)10 c)15 d)25
14.If the sum of n terms of AP is 2 n², the fifth term is
a)20 b)50 c)18 d)25
15.The sum of 3 numbers is GP is 28, when 7,2 and 1 are subtracted from the first, second and
third numbers respectively, then the resulting numbers are in AP. What is the sum of the squares
of the original numbers
a)510 b)456 c)400 d)336

Chapter 7- Sets, Relations, Functions, Limits and Continuity

Sets
A set is a collection of well defined elements.
There are two forms of sets. Namely,
a)Roaster form:
Ex :- A ={ a,e,i,o,u}

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b)Set builder form:
Ex: A ={ x: x is a vowel}
Cardinal number of set :-
Number of elements enclosed within a set
If A is a set then n(A) denotes its cardinal number.

Null set:-
An empty set is said to be a null set(A set having no elements
A = { } (or) A = φ
Cardinal number of a null set is zero.

Complement of a set :-
If ‘A’ is a set, then Al is complement of ‘A’
Example :- If U = {1,2,3,4} , A = {1,2,} find Al
Al = U – A →elements in U but not in A
Al = {3,4}

Types of sets
Equal Sets:
A and B are said to be equal if they enclose same and equal number of elements
Ex: A ={1,2,3}
B ={1,2,3}
Equivalent sets:
If n(A) = n(B) then A and B are said to be equivalent sets

Note: All equal sets are equivalent but all equivalent sets are not equal sets.
Finite set:

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A set having finite number of elements. Ex: A ={1,2,3, 4,5,6}
Infinite set:
A set having infinite number of elements.
Ex: set of all natural numbers, set of all even natural numbers, set of all real numbers etc.

Operations on 2 sets:-
• Union Operation.

To find union of A & B it is required to combine the elements in A & B

If A = {1,2,3,4,5}
B = {3,4,6,7}
Then, AUB = {1,2,3,4,5,6,7}
Note: [AUB →union →(or)→(+)]

• Intersection Operation

To find intersection of two sets A & B it is required to write the common elements b/w
A&B

If A= {1,2,3,4} , B = {3,5,6,7}

then A∩B = {3}

Note: (A∩B→ Intersection →and →X)
•
A–B
It means elements in A but not in B

If A = {1,2,3}
B = {1,2,3,4} then fine (i) A-B (ii) B-A

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(i) A – B= { } →null set

(ii) B – A = {4}

Note :- 1) For any 2 sets A and B

n(AUB) = n(A) + n(B) – n(A∩B)

2)For any 3 sets A, B and C

n(AUBUC) = n(A) + n(B) +n(C) – n(A∩B) –n(B∩C)- n(A∩C) + n(A∩B∩C)

→n(AUB) and n(AUBUC) are used for atleast 1
Demorgan’s laws

1) (AUB)I = Al∩Bl
2) (A∩B)I = AlUBl
Note :-
• (AUB)I = U – (AUB)
• n(AUB)I = n(U) – n(AUB)
• n(AUB)I = total – n (AUB) (to be used for neither A nor B)

Subset
A set A is said to be a subset of set B if all elements in set A are present in set B
Ex: If A ={1, 2, 3 }
B = { 1,2,3,4}
A is a subset of set B, since all elements in A are in B
Note:
• Any set is a subset of itself

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 • A null set is a subset of any set
• Number of subsets of a set having n elements = 2n
• Number of proper subsets of a set having n elements = 2n -1
• Power set: It is a set of all subsets of a given set
Ex: If A={1,2}
Power set = {{1},{2},{1,2},{} }

Example1:
Find the number of proper subsets of the set A = { 1, 2, 3 ,4 , 5 , 6 ,7,8}

Example2:
Find the number of subsets of the set A={3,5,7,9}
a) 16 b)15 c)14 d)none

Example3:
A ∩E’ is equal to (E is a super set of A)
a)E b) φ c) A d) none

Example4:
A ∩φ =
a) A b) φ c) E d) none

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 Example5:
AUA’ is equal to (E is super set of A)
a) A b) E c) φ d) none

Example6:
I is a set of Isosceles triangles and E is the set of Equilateral triangles. Then
a) I c N b)E c I c) E= I d) none

Problems on 2 sets and 3 sets

Example1
Out of 30 members in a family, 21 like tea and 24 like coffee. Assume that each one like
at least one of the 2 drinks. Find how many like both coffee and tea

Example2
Out of 250 students, 65 passed in accounts, 50 in economics ,80 in maths , 20 in both
accounts and maths, 25 in both maths and economics and 45 in both accounts and
economics and 15 students passed in all the three subject. Find the number of student
who passed at least in one of the subjects.

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 Problems using Ven diagram
Note :- To be used whenever it is required to find only 1 event.
Example1
There are 40 students, 30 of them passed in English, 25 of them passed in maths and 15
of them passed in both. How many students passed in English only but not in maths?
a) 15 b) 20 c) 10 d) 25

Example2
For a group of 400 persons, 200 are interested in music, 140 in photography, 80 in
swimming, further 80 are interested in both music & photography, 60 in both music &
swimming, 40 in both photography and swimming and 20 in all. How many are
interested in music but not in photography & swimming

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 Cartesian product of sets
It is of all possible order pairs obtained on two sets
Ex1:If A = {1,2} B = {3,4}
Then,
A X B = {(1,3), (1,4), (2,3), (2,4)}

Ex2:If A = {1,2,3} B = {5,6}

A X B = {(1,5), (1,6), (2,5), (2,6), (3,5), (3,6)}
Then,
B X A = {(5,1), (5,2), (5,3), (6,1), (6,2), (6,3)}

Note:
Cardinal number of A × B is n(A) × n(B)

Relations
It is a subset of of Cartesian product of two sets.
R = {(1,1), (1,2), (2,1), (2,2), (3,1), (3,2)}

Ex :- R = {(1,6) (2,5) (3,7) (3,6)}

Note: The number of Relations from A to B is equal to 2𝑛(𝐴) 𝑋 𝑛(𝐵)

Types of relations
1) Reflexive relation :-
For all a Є A
=> (a,a) ЄR
2)Symmetric relation :-
For any (a,b) Є R
=> (b,a) Є R
a & b are 2 different elements

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 3)Transitive relation
For any (a,b) Є R, (b,c) Є R
=> (a,c) Є R
(a,b) & (b,c) are pairs of 2 different elements
Equivalence relation
If a relation is reflexive, symmetric and transitive then it is said to be equivalence.
Note: a → element , Є → belongs to, A → set & R → relation

Partial order relation

A relation which is reflexive, anti symmetric and transitive is said to be a partial order
relation

Example1 :-
A= {1, 2, 3}
A R A = {(1,1), (1,2), (2,1) (2,2), (3,3)}

Example2:
If A = {1,2,3}
R = {(1,1), (1,2), (2,1) (2,2) }

Example3: On the sets of lines in a plane the Relation “is perpendicular to” is
a) Reflexive b) Symmetric c) Transitive d) none of these

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 Example4:
If a relation R = {(1,1), (2,2), (1,2), (2,1)} is symmetric on A = {1,2,3} then R is
a) Reflexive but not Transitive b) Transitive but not Reflexive
c) Reflexive and Transitive d) Neither Reflexive nor Transitive

Example5:
On the set of eggs “is smaller than’’ is
a)Reflexive b) Transitive c)Symmetric d)Equivalence

Function
Any relation is said to be function if the domain element occurs only once in the order
pairs [i.e no domain element must occur more than once]

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 and all domain elements have images.
Consider :- R = {(1,1), (1,2), (2,1) (2,2) (3,3)}

It is not a function because the domain elements 1 & 2 have repeated.

R = {(1,2), (2,3), (3,4) (4,1) } It is a function because the domain element are not
repeated.
Note :- All functions are relations but all relations are not function
First element in each order pairs is said to be a domain element
2nd element in each order pairs is said to be a range.

Type of functions
1.One – one function :-
If all domain elements have distinct images, then the function is said to be one - one
function

2.Onto function :-
If all codomain elements have a distinct pre image in domain, then the function is Onto
Note :- A Function which is not ONTO , is said to be INTO function

3)One – one and onto [Bijective function]

A function which is both one – one and onto , is said to be bijective function.
4)Many – one function :-

If more than one domain element having same image then the function is said to be
many – one

5).Constant function :-
If all domain element are having the same image then the function is said to be constant
function

Note :- All constant functions are many one but all many one functions are not constant
function
Inverse of a Function
• If f(x) is a function given then f-1 (x) is said to be the inverse of f(x)

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 To obtain inverse of f(x) it is required to interchange the domain & codomain elements
given in the order pairs.
ex :- If f(x) = {(1,2), (2,3), (4,5), (3,6)}

Then f-1 (x) = {(2,1), (3,2), (5,4), (6,3)}

To find f-1 (x) when f(x) interms of x is given

Procedure:
Step 1 :- let y = f(x)
Step 2 :- express x in terms of y
Example1:
Find f-1 (x) If f(x) = 5x +9

Example2:
3+𝑥
If f(x) = 3−𝑥 , find f-1 (x)

Function of a function
Example1:
If f(x) = 5x + 12 find f(3) and f(5x)

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 Example2:
If f(x) = 2x + 7 g(x) = 4x -10 then find fog

Example3
If f(x) = 5x – 7, g(x) = x2 + 5x + 5 find gof

Example4
If f(x) = x2 + x – 1 and 4f(x) = f(2x) then x=?

CONCEPT OF LIMIT
I) We consider a function f(x) = 2 x. If x is a number

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 Chapter 13- Statistical description of data and Sampling Theory
Statistics
It is a branch of mathematics that deals with collection of numerical data, analysis,
interpretation and presentation of the same in a systematic manner.
It is derived from an Italian word Statista. Which means ‘Statesman’
It is also derived from Latin word Status which means ‘political state’

Statistics in Singular sense:

In singular sense we can define statistics as the science that provides techniques or
methods for collecting, analyzing, interpreting and presenting the data
Statistics in plural sense:
In plural sense we can define statistics as the numerical statements of facts relating to any
field of enquiry such as data relating to production, income , population , prices etc
Type of data:
There are two basic types:
1. Primary data
2. Secondary data
1. Primary data :
A data collected directly from the source
Methods of primary data collection
1. Personal interview
2. Telephonic interview
3.Email questionnaire
4.Observation method : (quantities line height and weight measured using measuring
instruments)
Note:
• For population census and during natural calamities, personal interview is the best
method of primary data collection

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 • When the source is far away, telephonic interview is the most inexpensive and
effective method of primary data collection:
• Ex: Information collected over phone about railway accidents
• Email questionnaire has the widest area coverage, but the non responses are more.
2. Secondary data
Data collected indirectly from the source, via intermediate agencies
Some important sources of Secondary data
• Govt. & international Agencies
• Internet
• Books and Magazines etc
Data Classification:
1. Temporal( Chronological) Data:
Time related data
Ex: Sales of a company in various years
2.Spatial( Geographical) data
Area related data
Ex: Weather report of various cities
3.Qualitative data
Data related to the characteristic or an attribute
Ex: knowledge, habit of a person, skill, nationality etc
4. Quantitative data ( measurable )
Any measurable data is said to be quantitative
Ex: Marks, Height, weight, age etc

FREQUENCY DISTRIBUTION
➢ A systematic presentation of the values taken by a variable and the corresponding
frequencies are called frequency distribution of that variable.

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 ➢ A tabular presentation of frequency distribution is called Frequency Table.
Types:
1. Continuous (grouped) frequency distribution (class intervals are consi
a) Inclusive Classes
• Lower limit and upper limits of the a class are inclusive
• Class limits and class boundaries are different
• Inclusive classes can be converted into exclusive by setting up new class
boundaries
i.e the class limits of exclusive classes are 4.5-14.5 , 14.5-24.5 , …….

Marks 5-14 15-24 25-34 35-44 45-54 55

-
64

No. of 1 1 3 2 1 10
student 0 8 2 6 4
s

b) Exclusive classes
• Class limits and class boundaries are the same.
• Only lower class limit is inclusive whereas upper limit is exclusive.
Marks 0-20 20-40 40-60 60-80 80-100

No. of 5 18 5 12 5
students

2. Discrete frequency Distribution

A distribution of variable which assumes only whole numbers.
X 1 2 3 4 5

F 5 10 15 10 5

Terminologies used in frequency distribution

• Class interval – If the range of a frequency distribution is large, then it is divided
into mutually exclusive sub-ranges called class-intervals.

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 • Class limit – Each class interval is specified by 2 limits – Upper class limit & lower
class limit
• Class Width(Class length) – Difference between the class limits of a class interval
is the width of class interval (for exclusive classes). Where as for inclusive classes it
is the difference between the class boundaries.
• Class mark or class mid-value – The central value of a class interval is called
class mid-value.
• Class frequency – Number of observations in any class is the class frequency
• N – It is the sum of all frequencies in a frequency distribution
• Inclusive Class Interval – A class in which upper limit and lower limits are included
in the class
• Exclusive Class Interval – A class in which lower limit of a class is included in the
same class where as the upper limit is included in the succeeding class
• UCB ( upper class boundary) -It’s an upper limit to an upper class limit
• LCB ( Lower class boundary) – it is a lower limit to a lower limit class
• Frequency density
It is the ratio of class frequency to the class length. i.e.
𝐶𝑙𝑎𝑠𝑠 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
Frequency density = 𝐶𝑙𝑎𝑠𝑠 𝑙𝑒𝑛𝑔𝑡ℎ
• Relative frequency (RF)
It is the ratio of class frequency to the total frequency. i.e
𝐶𝑙𝑎𝑠𝑠 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
RF = 𝑇𝑜𝑡𝑎𝑙 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
RF ranges between 0 and 1 ( both exclusive)
• Percentage frequency = RF x 100

Basics rules to be observed for any frequency distribution

• As far as possible the classes must be of equal lengths
• The classes must be unambiguously defined
• The data must be homogeneous
• Classes must be mutually exclusive
• Classes must be Exhaustive
•
LCF & MCF
LCF: Less than cumulative frequency:
• It is required to find Median and partitions for a given data
• For Class boundaries we shall consider UCB of each class
• The last cumulative frequency is N
• If the class intervals are inclusive then we shall convert them into exclusive classes
by setting up new boundaries

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 Example:
Find LCF

CI 0-9 10-19 20-29 30-39

F 5 15 10 20

Solution:
Less 9.5 19.5 29.5 39.5 49.5
than
claas
boundary
CF 5 20 30 50 60

MCF: More than cumulative frequency:

• It is required (alongwith LCF) to plot ogive
• For Class boundaries we shall consider LCB of each class
• The first cumulative frequency is N
• If the class intervals are inclusive then we shall convert them into exclusive classes
by setting up new boundaries

Ex: Find MCF

CI 0-10 10-20 20-30 30-40 4

F 5 15 10 20 1

Solution:
More 0 10 20 30 40
than

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 claas
boundary
CF 60 55 40 30 10

Note: The sum of LCF and MCF for a given class boundary is always equal to
N

Methods of data presentation

1. Textual (Data in the form of a text)
2. Tabulation (Data arranged in rows &columns)
The best method of data presentation

3. Diagramatic (Graphical) Data presentation

→ Most attractive method of data presentation

TABULATION
• Tabulation is a systematic arrangement of classified data in rows and columns
of a table.
Advantages of Tabular presentation
• It facilitates comparison between rows and columns
• Complicated data can also be represented using tabulation
• It is a must for diagrammatic representation
• Without tabulation, statistical analysis of data is not possible

Parts of Tabulation:
There are 4 main parts. Namely
1. Caption: It is the uppermost part of the tabulation which describes the
columns or sub columns
It is also refered as Column heading
2. Box head: It is the entire upper part of the tabulation which include Caption,
columns, Sub Columns and also units of measurement
3. Stubs: It is the left most part of the tabulation which is referred as row
headings
4. Body: It is the main part of the tabulation which consists of information (
numbers) arranged in rows and columns
Footnote: It is the lower most part of the tabulation which gives the source of
information and also any missed out information

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 Diagrammatic Presentation of data
It is the representation of statistical data in the form of charts, diagrams and
pictures.
It may be one-dimensional, two dimensional or three dimensional.
The different types of diagrams are
• Line Diagram
• Bar diagram
• Pie chart
• Histogram
• Frequency Polygon
• Ogives
• Frequency curves

Line Diagram
• It is one dimensional

Bar graph

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 → Bar graphs are one dimensional

Types of bar graphs

→ Horizontal : Used for qualitative data
→Vertical: Used for quantitative data
→Multiple Bar graph: In order to Compare two or more related series

→Divided bar graph: For comparing various components of a variable and

relating different components to the whole..

Pie chart:
→Also called as circular diagram
→Used to represent family’s monthly budget,
5 year planning of a country etc
→Pie charts are two dimensional
𝑥
→Central angle = ∑ 𝑥 × 360
Where x is observation

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 Histogram
• It is also called as area diagram
• It is two dimensional
• Used to measure mode graphically
• Most commonly used graph for continuous frequency distribution
• Can be used for classes with equal widths or unequal widths

Frequency Polygon:

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 • It is two dimensional
• Can be obtained from Histogram
• For equal class widths, the area under histogram is same
area under frequency polygon

Ogives
• Ogives are cumulative frequency curve
• Ogives are one dimensional
• Used to measure Median and quartiles
graphically
• The point of intersection of LCF and MCF gives
Median

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 Frequency Curves
U shaped

Inverted J shaped (s shaped)

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 Bell Shaped

Mixed

• Frequency curves are one dimensional

• Bell shaped ( inverted U shaped) frequency curves are most commonly used
• Bell shaped frequency curves are used for respresenting profit, height,weight
• Age , marks etc

To find number of classes when the range and Class length (Class width) are
given
𝑹𝒂𝒏𝒈𝒆
Number of Classes = 𝑪𝒍𝒂𝒔𝒔 𝒍𝒆𝒏𝒈𝒕𝒉
Or

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 Number of classes = 1+3.322 logN
Where N is total frequency
Note:
• Range = Largest observation – Smallest observation
• If the number of classes is found to be a non integer then we shall round of to
the next immediate integer. I.e if the number of classes is found to be 5.2 then
it must be rounded off to 6.

Worked Examples:

1. The following table relates to the income of 90 persons:

Income in ₹. 1500-1999 2000-2499 2500- 3000-
2999 3499
No. of 13 32 20 25
Persons:
What is the percentage of persons earning more than ₹. 2,500?
a) 45 b) 50 c) 52 d) 55

2. Cost of sugar in a month under the heads raw materials, labour, direct production and
others were 12, 20, 35 and 23 units respectively. What is the difference between the
central angles for the largest and smallest components of the cost of sugar?
a) 720 b) 480 c) 560 d) 920

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3.In 2000, out of total 1,750 workers of a factory, 1,200 were members of a trade union.
The number of women employed was 200 of which 175 did not belong to a trade union. In
2004, there were 1,800 employees belong to a trade union and 50 who did not belong to a
trade union. Of all the employees in 2004, 300 were women of whom only 8 did not belong
to the trade union. On the basis of this information, the ratio of female members of the
trade union in 2000 and 2004 is:
a) 292:25 b) 8:175 c) 175:8 d) 25:292

4. Out of 1000 persons, 25 percent were industrial workers and the rest were agricultural
workers. 300 persons enjoyed world cup matches on T.V. 30 percent of the people who
had not watched the world cup matches were industrial workers. What is the number of
agricultural workers who had enjoyed world cup matches on TV?

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a) 230 b) 250 c) 240 d) 260

5. The data given below refers to the marks gained by a group of students:
Marks Below 10 Below 20 Below Below Below
30 40 50
No. of 15 38 65 84 100
Students
Then the no. of students getting marks more than 30 would be_____________
a) 50 b) 53 c) 35 d) 62

6. A pie diagram is used to represent the following data:

Source Customs Excise Income Wealth
tax tax
Revenue in million 120 180 240 180
rupees:

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The central angles in the pie diagram corresponding to income tax and wealth tax
respectively:
a) (1200, 900) b) (900, 1200)
0 0
c) (60 , 120 ) d) (900, 600)

7. If the class interval is 10 – 14, 15 - 19, 20 – 24, then the first class is:
a) 10 – 15 b) 9.5 – 14.5
c) 10.5 – 15.5 d) 9 – 15

8. Find the number of observations between 250 and 300 from the following data:
Value more 200 250 300 500
than:
No. of 56 38 15 0
observation:

a) 38 b) 23 c) 15 d) None of the
above

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9. From the following data find the number of class intervals if class length is given as 5.
73, 72,65,41,54,80,50,46,49,53
a) 6 b) 5 c) 7 d) 8

10. The following data relate to the marks of 25 students in statistics

55, 60, 62, 75, 78, 88, 85, 90, 92, 65, 56, 63, 95, 98, 84, 71, 51, 57, 68, 79, 80, 59,
53, 77, 79
What are the frequency densities for the class intervals 61-70 and 81-90
a) 0.4 and 0.4 b) 0.3 and 0.5 c) 0.4 and 0.5 d) none of these

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 11. In a study about male and female students of commerce and science
departments of a college in 5 years, the following data were obtained

1995 2000
70% male students 75% male students
65% read commerce 40% read science
20% of female students read science 50% of male students read
commerce
3000 total number of students 3600 total number of students

After combining 1995 and 2000 , if x represents the ratio of female commerce students to
female science students and y represents the ratio of male commerce students to male
science students, then
a) x=y b) x>y c)x<y d) none of these

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12. The number of accidents for seven days in a locality are given below

No of accidents : 0 1 2 3 4 5 6
Frequency : 15 19 22 31 9 3 2
What is the number of cases where 3 or more than 3 accidents occurred?
a) 45 b) 14 c) 34 d) none of these

Solution:
Frequecny of 3 or more accidents = 31+9+3+2 = 45

Note: Descriptive statistics: It will focus on all the observations of the data.
For example the average salary of workers is descriptive as we need to know
the salary of each worker.

Inferential statistics: It helps in making inference about population based on

samples. Using the information about the small sample one can generalize for
the large sample.

Practice questions:
1. Data collected on religion from the census reports are:
a) Primary data b)secondary data c) sample data d) a or b
2. The chart that uses logarithm of variable is known as

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 a) Ratio chart b) line chart c) multiple line chart d) none of these
3. In collection of data, which of the following are interview methods
a) Personal interview method b) telephonic interview method

c)published data d) a and b

4. For constructing a histogram the class intervals of a frequency distribution must be
of the following type
a) Equal b) Unequal c) Equal or unequal d) none of these
5. Profits made by XYZ bank in different years refers to
a) An attribute b) A discrete variable c) A continuous variable d) none of
these
6. The point of intersection of less than ogive curve and more than ogive curve give us:
a) Mean b) mode c) median d) none of these
7. Frequency density corresponding to the class interval is the ratio of
a) Class frequency to the total frequency
b) Class frequency to the class length
c) Class length to the class frequency
d) Class frequency to the cumulative frequency
8. Mode of presentation of data:
a) Textual presentation b) Tabulation c) oral presentation d) a and b
9. Mode can be obtained from
a) Frequency polygon b) histogram c) ogive d) all of the above
10. The most appropriate diagram to represent the data relating to the monthly
expenditure on different items by a family is:
a) Histogram b) Pie diagram c) Frequency polygon d) line diagram
11. When the two curves of ogive intersect, the point of intersection provides:
a) First quartile b) second quartile c) Third quartile d) mode
12. The data obtained by the internet are:
a)primary data b) secondary data c) both a and b c) none of these
13. Which of the following is not a two dimensional diagram
a) Square diagram b) line diagram c) Rectangular diagram d) pie chart
14. Most extreme values which would ever be included in a class interval are called:
a) Class interval b) class limits c) class boundaries d) none of these
15. In a study related to the labourers of a factory, the following data were revealed
40% of the total employees are females and 50% of them are married. 50 female
workers are not the members of trade union. Compared to this, out of 1200 male
workers 1000 are members of trade union. 60% of the male employees are married.
100 male workers are unmarried non members. The unmarried non member

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 employees are 120. On the basis of this information, the ratio of married female non
members to the married male non members is
a) 3:10 b) 4:5 c) 3:8 d) none of these
16. The less than ogive is a
a) U shaped curve b) J- shaped curve c) S- shaped curve d) Bell shaped curve

17.The central angle corresponding to the largest observation given is,

150, 200, 180, 170, 20
a) 100° 𝑏) 200° 𝑐) 120° 𝑑)𝑛𝑜𝑛𝑒 𝑜𝑓 𝑡ℎ𝑒𝑠𝑒

18.From the following data find the number of class intervals if class length is given as
5.
73, 72,65,41,54,80,50,46,49,53,90,65
a) 6 b) 5 c) 7 d) none

19.The best method of presentation of data is

a) Textual b) tabular c) diagrammatic d) none of these
20. Most commonly used frequency curve is
a) b) inverted J shaped c) bell shaped d) U shaped

21. The following data relate to the marks of 25 students in statistics

55, 60, 62, 75, 78, 88, 85, 90, 92, 65, 56, 63, 95, 98, 84, 71, 51, 57, 68, 79, 80, 59,
53, 77, 79
What are the frequency densities for the class intervals 51-60 and 71-80
a) 0.6 and 0.7 b) 0.3 and 0.5 c) 0.4 and 0.5 d) none of these

22. The number of accidents for seven days in a locality are given below
No of accidents : 0 1 2 3 4 5 6
Frequency : 15 19 22 31 9 3 2
What is the number of cases where 3 or more than 3 accidents occurred?
a) 45 b) 14 c) 34 d) none of these

23. The following data relate to the incomes of 86 persons

Income in Rs. : 500-999 1000-1499 1500-1999 2000-2499
No of persons: 15 28 36 7
What is the percentage of persons earning more than Rs. 1500 ?
a) 50 b) 45 c) 40 d) 60

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 24. Consecutive recatangles in histogram have no space in between
a) True b) false c) both d) none
25. The amount of non responses is maximum in
a) Mail questionnaire method b) interview method c) observation method d) all
of these
26. In order to compare two or more related series, we consider:
a) Multiple bar chart b) grouped bar chart c) a or b d) a and b
27. The lower class boundary is :
a) An upper limit to lower class limit b) a lower limit to lower class limit
c)both a and b d) none of these
28. Some important sources of secondary data are:
a) International and government sources b) international and primary
sources
c)private and primary sources d) Government sources
29. In inclusive classification of data
a) Only LCB is inclusive b) only UCB is inclusive c)Both LCB and UCB are
inclusive d) none of these

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 Sampling Theory

Sampling theory is a branch of statistics that deals with the selection of a subset of
individuals from a larger population to make inferences about the whole population. Let's
break it down with an example:

Imagine you want to know the average height of all students in a school, but measuring
every student's height is impractical and time-consuming. Instead, you decide to use
sampling. Here's how it works:

1. Define the Population: Your population is all the students in the school.
2. Choose a Sampling Method: You might use simple random sampling, where each student
has an equal chance of being selected. Alternatively, you could use stratified sampling,
dividing students into groups (strata) based on grade levels, and then randomly selecting
from each stratum.
3. Select the Sample: Let's say you randomly choose 100 students from the school.
4. Collect Data from the Sample: Measure the height of the 100 selected students.
5. Make Inferences: Use the data from the sample to make predictions or inferences about
the entire population's average height.

Sampling theory ensures that the sample you've selected is representative of the
population, reducing the risk of biased results. The larger and more representative the
sample, the more reliable your inferences about the population will be. It's like getting a
taste of the whole pie without having to eat the entire thing!

Criteria for an ideal estimator:

• Unbiasedness
• Consistency
• Efficiency
• Sufficiency

Basic principles of Sample survey

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1. Law of Large Numbers: This law states that as the size of a sample increases, the estimate
derived from that sample will converge to the true population parameter. In other words,
larger samples tend to provide more accurate representations of the population.
2. Principle of Inertia (Nonresponse Bias): This principle emphasizes the importance of
minimizing nonresponse bias. Nonresponse occurs when selected individuals in the sample
do not participate in the survey. The principle of inertia suggests that nonresponse can
introduce bias, and efforts should be made to encourage participation to ensure a
representative sample.
3. Principle of Optimization (Efficiency): This principle involves finding the balance between
sample size and the resources (time, cost, etc.) required for the survey. It aims to optimize
the survey process by choosing a sample size that provides sufficient precision without
unnecessary costs.
4. Principle of Validity (Validity): Validity refers to the extent to which a survey accurately
measures what it intends to measure. The principle of validity emphasizes the importance
of designing survey questions and methodologies that truly capture the concepts or
characteristics of interest in the population.

Comparison between Sample survey and Complete enumeration

1. Definition:
• Sample Survey: In a sample survey, data is collected from a subset or sample of the
entire population, and statistical techniques are applied to make inferences about
the whole population.
• Complete Enumeration (Census): In a complete enumeration, data is collected
from every individual or unit in the entire population.
2. Scope:
• Sample Survey: Surveys are often conducted when it's impractical or too costly to
collect data from the entire population. The goal is to generalize findings from the
sample to the larger population.
• Complete Enumeration: A census aims to collect data from every individual in the
population, leaving no one out.
3. Time and Cost:
• Sample Survey: Generally requires less time and resources compared to a census,
making it a more feasible option in many situations.
• Complete Enumeration: Conducting a census is often time-consuming and can be
costly, especially for large populations.

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4. Accuracy:
• Sample Survey: May introduce sampling error, but with proper sampling
techniques, statistical methods can be used to estimate and control this error.
• Complete Enumeration: Has the potential to be more accurate since it includes
every unit in the population. However, it may still involve non-sampling errors due to
issues like nonresponse or data collection errors.
5. Representativeness:
• Sample Survey: The representativeness of the sample is crucial for generalizing
findings to the entire population. Random sampling methods are often employed to
ensure unbiased representation.
• Complete Enumeration: Ensures complete representation of the population by
including every unit.
6. Flexibility:
• Sample Survey: Offers flexibility in terms of adjusting sample sizes, targeting
specific subgroups, and accommodating changes in the research design.
• Complete Enumeration: Less flexible due to the necessity to collect data from
everyone in the population.
7. Applicability:
• Sample Survey: Commonly used in social sciences, market research, and other fields
where insights from a subset of the population can be generalized.
• Complete Enumeration: Essential for official government censuses, where accurate
and detailed information about the entire population is required.

In summary, the choice between a sample survey and complete enumeration depends on
factors such as the research objectives, available resources, time constraints, and the level
of accuracy needed for the study

Errors in sampling survey

1. Sampling Errors:
• Definition: Sampling errors occur due to the inherent variability that arises when a
sample, rather than the entire population, is surveyed.
• Causes:
• Random Sampling Variability: In simple random sampling, there's a chance
that the selected sample does not perfectly represent the population, leading
to differences between the sample and population characteristics.

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 • Systematic Sampling Bias: If there's a pattern or systematic error in the way
the sample is selected, it can lead to biased estimates.
• Control: To minimize sampling errors, researchers can use random sampling
methods, increase the sample size, and employ statistical techniques to quantify and
control for the variability introduced by sampling.
2. Non-sampling Errors:
• Definition: Non-sampling errors are not related to the act of sampling itself but can
occur at various stages of the survey process.
• Causes:
• Nonresponse Bias: Occurs when selected individuals refuse to participate or
cannot be reached, leading to a potential bias in the survey results.
• Measurement Errors: Result from inaccuracies in the way survey questions
are worded, how respondents interpret questions, or errors made by
interviewers during data collection.
• Processing Errors: Mistakes in data entry, coding, or analysis that can
introduce errors into the final dataset.
• Coverage Errors: Arise from issues related to defining the population or
including/excluding certain groups.
• Control: Non-sampling errors are challenging to eliminate entirely, but researchers
can minimize them through careful survey design, rigorous training of interviewers,
thorough data validation processes, and regular quality control checks.
3. Total Survey Error (TSE):
• Definition: Total Survey Error is the sum of sampling and non-sampling errors in a
survey.
• Management: Researchers need to be aware of and manage TSE by considering
and addressing all potential sources of error throughout the survey process—from
the design phase to data analysis.

Types of Sampling:

1. Random Sampling:
• Simple Random Sampling: Every individual in the population has an equal chance
of being selected. This can be done using random number generators or
randomization techniques.
Stratified Random Sampling: The population is divided into subgroups (strata)
based on certain characteristics, and then random samples are taken from each
stratum. This ensures representation from all subgroups.

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 tIt is a sampling technique providing separate estimates for population means for different
segments and also an overall estimate.

2. Non-Random Sampling:
• Convenience Sampling: Individuals are chosen based on their availability and
accessibility. This method is convenient but may lead to biased samples.
• Purposive Sampling: Specific individuals are chosen intentionally based on certain
characteristics. This is useful when researchers want to study a particular subgroup.
• Quota Sampling: Similar to stratified sampling, but the samples are not chosen
randomly. Researchers select individuals based on certain quotas, ensuring
representation from different categories.
3. Systematic Sampling:
• Individuals are selected at regular intervals from a list after a random starting point
has been determined. This method is simple and efficient when a complete list of the
population is available.
4. Cluster Sampling:
• The population is divided into clusters, and then a random sample of clusters is
selected. All individuals within the chosen clusters are included in the study. This
method is useful when it's impractical to sample individuals individually.
5. Snowball Sampling:
• This is a chain-referral sampling method where existing participants refer others for
inclusion in the study. This is often used when the population is difficult to identify
or locate.
6. Multi-Stage Sampling:
• This involves a combination of various sampling methods at different stages. For
example, a researcher might use stratified random sampling to choose clusters and
then use simple random sampling within those clusters.

Each type of sampling has its own strengths and weaknesses, and the choice of method
depends on the research objectives, available resources, and the nature of the population
being studied. Researchers must carefully consider the implications of their chosen
sampling method to ensure the generalizability of their findings to the larger population.

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 Important terms associated with Sampling

1. Sample:
• Definition: A subset of the population selected for a study or analysis.
• Role: The sample is chosen to represent the larger population, and conclusions are
drawn based on observations or measurements within this subset.
• A sample having number of units less than 30 is called a small sample
2. Parameter:
• Definition: A numerical characteristic of the entire population.
• Role: Parameters are the true, fixed values that describe the population. Examples
include the population mean, standard deviation, or proportion. In most cases, it's
impractical or impossible to measure the parameter for the entire population, so we
estimate it using statistics from a sample.
3. Statistic:
• Definition: A numerical characteristic of a sample.
• Role: Statistics are calculated based on the data collected from the sample. Common
examples include the sample mean, sample standard deviation, or sample
proportion. These serve as estimators or approximations of the corresponding
population parameters

Population mean
∑𝒏𝒊=𝟏 𝒙𝒊
𝝁=
𝒏

Where:

• μ is the population mean,

• n is the number of observations in the sample (population size), and
• xi represents each individual value in the sample.
Population variance
∑(𝒙𝒊 − 𝝁)𝟐
𝝈𝟐 =
𝒏
Standard Deviation
∑(𝒙𝒊 − 𝝁)𝟐
𝝈=√
𝒏

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 Sampling Distribution and Standard Error of a statistic
1. Sampling Distribution:
• Definition: The distribution of a statistic (such as mean, proportion, standard
deviation) calculated from multiple samples of the same size drawn from the same
population.
• Role: It provides a theoretical probability distribution that describes how a statistic
varies over all possible samples of a particular size from a population. Sampling
distributions help us make inferences about the population based on sample data.
• Example: Imagine you repeatedly take random samples of 30 students from a
school and calculate the mean height for each sample. The collection of all these
sample means forms the sampling distribution of the sample mean.
2. Standard Error of a Statistic:
• Definition: A measure of the variability or spread of a statistic's sampling distribution.
• Role: It quantifies the precision of our estimate of the population parameter. A
smaller standard error indicates that the sample statistic is likely to be closer to the
true population parameter.
• Standard deviation of a sampling distribution is known as standard error

𝝈
SE(for mean) = For simple random sampling with replacement
√𝒏

𝝈 𝑵−𝒏
= √ for simple random sampling without replacement
√𝒏 𝑵−𝟏
Where N is total population
n is sample size

Standard Error for proporation

𝒑𝒒
SE(p) =√ 𝒏 for simple random sampling with replacement
𝒑𝒒 𝑵−𝒏
=√ 𝒏 √𝑵−𝟏 for simple random sampling without replacement
𝑵−𝒏
Where √𝑵−𝟏 𝒊𝒔 𝒌𝒏𝒐𝒘𝒏 𝒂𝒔 𝒇𝒊𝒏𝒊𝒕𝒆 𝒑𝒐𝒑𝒖𝒍𝒂𝒕𝒊𝒐𝒏 𝒄𝒐𝒓𝒓𝒆𝒄𝒕𝒊𝒐𝒏 𝒐𝒓
𝒇𝒊𝒏𝒊𝒕𝒆 𝒑𝒐𝒑𝒖𝒍𝒂𝒕𝒊𝒐𝒏 𝒎𝒖𝒍𝒕𝒊𝒑𝒍𝒊𝒆𝒓
It may be ignored as it tends to 1 if the sample size(n) is very large or
population under consideration is infinite when the parameters are unknown,
they may be replaced by the corresponding statistic.

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 Worked Examples:
1. A population comprises the following units m,n,o,p,q,r. Draw all possible
samples of size 5 without replacement

Solution:
Given n=5
N=6

Therefore total number of possible samples = 𝟔𝑪𝟓 = 6

2.)A population comprises 3 members 1,5,3. Draw all possible samples of size 2.
a) With replacement
b) Without replacement
Find the sampling distribution of sample mean in both cases.

Solution:
Total possible samples of size 2 with replacement = 𝟑𝟐 = 9
Sl. No Sample of size 2 with Sample mean
replacement
1 1,1 1

2 1,5 3

3 1,3 2

4 5,1 3

5 5,5 5

6 5,3 4

7 3,1 2

8 3,5 4

9 3,3 3

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Sampling distribution of sample mean
Mean 1 2 3 4 5 Total
P 1/9 2/9 3/9 2/9 1/9 1

ii) Without replacement

Total possible samples= 𝟑𝑪𝟐 = 𝟑𝑪𝟏 =3

Sl. No Sample of size 2 without Sample mean
replacement
1 1,3 2

2 1,5 3

3 3,5 4

Sample distribution of mean

Mean 2 3 4 Total

P 1/3 1/3 1/3 1

3. Compute the standard deviation of sample mean for the last problem. Obtain the SE
of sample mean and show that they are same for with replacement and without
replacement

Practice questions:

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 1. Sampling can be described as a statistical procedure
(a) To infer about the unknown universe from a knowledge of any sample
(b) To infer about the known universe from a knowledge of a sample drawn from it
(c) To infer about the unknown universe from a knowledge of a random sample drawn from it
(d) Both (a) and (b).
2. The Law of Statistical Regularity says that
(a) Sample drawn from the population under discussion possesses the
characteristics of the population
(b) A large sample drawn at random from the population would posses the
characteristics of the population
(c) A large sample drawn at random from the population would possess the
characteristics of the population on an average
(d) An optimum level of efficiency can be attained at a minimum cost.
3. A sample survey is prone to
(a) Sampling errors (b) Non-sampling errors
(c) Either (a) or (b) (d) Both (a) and (b)
4. population of roses in Salt Lake City is an example of
(a) A finite population (b) An infinite population
(c) A hypothetical population (d) An imaginary population.
5. Statistical decision about an unknown universe is taken on the basis of
(a) Sample observations (b) A sampling frame
(c) Sample survey (d) Complete enumeration
6. Random sampling implies
(a) Haphazard sampling (b) Probability sampling
(c) Systematic sampling (d) Sampling with the same probability for each unit.
7. A parameter is a characteristic of
(a) Population (b) Sample
(c) Both (a) and (b) (d) (a) or (b)
8. A statistic is

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 (a) A function of sample observations (b) A function of population units
(c) A characteristic of a population (d) A part of a population.
9. Sampling Fluctuations may be described as
(a) The variation in the values of a statistic
(b) The variation in the values of a sample
(c) The differences in the values of a parameter
(d) The variation in the values of observations.
10. The sampling distribution is
(a) The distribution of sample observations
(b) The distribution of random samples
(c) The distribution of a parameter
(d) The probability distribution of a statistic.
11. Standard error can be described as
(a) The error committed in sampling
(b) The error committed in sample survey
(c) The error committed in estimating a parameter
(d) Standard deviation of a statistic.

12. A measure of precision obtained by sampling is given by

(a) Standard error (b) Sampling fluctuation
(c) Sampling distribution (d) Expectation.
13. As the sample size increases, standard error
(a) Increases (b) Decreases
(c) Remains constant (d) Decreases proportionately.
14. If from a population with 25 members, a random sample without replacement of 2 members is
taken, the number of all such samples is
(a) 300 (b) 625
(c) 50 (d) 600

15. A population comprises 5 members. The number of all possible samples of size 2 that can be
drawn from it with replacement is
(a) 100 (b) 15
(c) 125 (d) 25

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 16. Simple random sampling is very effective if
(a) The population is not very large
(b) The population is not much heterogeneous
(c) The population is partitioned into several sections.
(d) Both (a) and (b)
17. Simple random sampling is
(a) A probabilistic sampling (b) A non- probabilistic sampling
(c) A mixed sampling (d) Both (b) and (c).
18. According to Neyman’s allocation, in stratified sampling
(a) Sample size is proportional to the population size
(b) Sample size is proportional to the sample SD
(c) Sample size is proportional to the sample variance
(d) Population size is proportional to the sample variance.
19. Which sampling provides separate estimates for population means for different
segments and also an over all estimate?
(a) Multistage sampling (b) Stratified sampling
(c) Simple random sampling (d) Systematic sampling

20. Which sampling adds flexibility to the sampling process?

(a) Simple random sampling (b) Multistage sampling
(c) Stratified sampling (d) Systematic sampling
21. Which sampling is affected most if the sampling frame contains an undetected periodicity?
(a) Simple random sampling (b) Stratified sampling
(c) Multistage sampling (d) Systematic sampling
22. Which sampling is subjected to the discretion of the sampler?
(a) Systematic sampling (b) Simple random sampling
(c) Purposive sampling (d) Quota sampling.
23. If a random sample of size 2 with replacement is taken from the population containing
the units 3,6 and 1, then the samples would be
(a) (3,6),(3,1),(6,1)
(b) (3,3),(6,6),(1,1)
(c) (3,3),(3,6),(3,1),(6,6),(6,3),(6,1),(1,1),(1,3),(1,6)
(d) (1,1),(1,3),(1,6),(6,1),(6,2),(6,3),(6,6),(1,6),(1,1)
24. If a random sample of size two is taken without replacement from a population
containing the units a,b,c and d then the possible samples are
(a) (a, b),(a, c),(a, d) (b) (a, b),(b, c), (c, d)
(c) (a, b), (b, a), (a, c),(c,a), (a, d), (d, a) (d) (a, b), (a, c), (a, d), (b, c), (b, d), (c,d)

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 Chapter 14- Measures of central tendency and dispersion

Central Tendency
Central tendency may be defined as
→A single value that represents the whole set of data
or
→ A value around which most of the observations get clustered or concentrated
Ex: An IPL team is recognized by high average wins
Ex: Educational institutions are recognized by average marks
obtained by its students

Measures of Central Tendency

• Arithmetic mean (AM)
• Median (M)
• Partitions
a) Quartile
b) Decile
c)Percentile
• Mode(Z)
• Geometric mean (GM)
• Harmonic Mean (HM)

Arithmetic Mean (AM) For Ungrouped data

∑𝑥
AM = 𝑥̅ = 𝑛
where, ∑ 𝑥 = x1 + x2 + x3 + …………. + xn

n → number of observations
Eg :- Find AM of 5, 10, 15, 25, 35

Solution :-

∑𝑥 5 + 10 + 15 + 25 + 35
AM = =
𝑛 5
90
= = 18
5
Note :- AM is rigidly defined as it gives us a single value.

AM of observations having equal spacing

If the observation have equal spacing then
AM = AM of Extreme values
Example ;- Find the AM of 10, 20, 30, 40, 50, 60
Solution :-

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 For the given observations there exists an equal spacing of 10.
:. AM = AM of 10 & 60

𝟏𝟎+𝟔𝟎
= = 35
𝟐

Note:
If each observation is added / subtracted / multiplied / divided by a common number k',
then AM also gets added/ Subtracted / multiplied / divided by the same common number
‘K’
Ex:1. The AM of 30 observations is 35. If each Observation is added by 5 then the new AM is
Solution:
K=5
New AM = old AM+K
= 35+5
=40
Ex :- The AM of 30 observations is 60. If each observation is divided by 6, then find the New
AM.
Solution:- K=6, old AM=60 :New AM= (old Am)/𝐾
= (60 )/6 = 10

̅ c)
Combined AM(𝑿

If there are 2 groups with n1, &n2, as the no of observations respectively & ̅̅̅ 𝑥2 as the
𝑥1 & ̅̅̅
respective AM's then,

𝑛1 ̅𝑥̅̅1̅ + 𝑛2 ̅𝑥̅̅2̅
𝑥̅𝑐 = 𝑛1 + 𝑛2

Note : This formula Can be extended for any number of groups.

Type1:
Example:
1. There are 2 Groups with 60 & 40 as the respective no. observations 60 & 70 as the

244 | P a g e
 respective AM's. Find combine

Type2:
Example :-
The AM of 15 observations is 20. If the AM of first 11 of them is 21. Then find the AM of
remaining observations,

Example:
The mean weight of 60 students of a class is 65kgs. If the mean weight of 20 of them is 70kgs,
that of another 25 students is 60 kgs, then find the mean weight of remaining students.

245 | P a g e
 AM for Grouped data

(i) Without shift of origin & change of 'scale’ (without step deviation)

Note :
a) shift of origin means adding or subtracting each observation by a common number

b) Change of scale means multiplying or dividing each observation by a common number

∑ 𝑓.𝑥
𝑋̅ = 𝑁
where N = ∑ 𝑓

∑ 𝑓𝑥 = f1 x1 + f2 x2 + …….. + fn xn

(ii) with shift of origin & change of scale. (With step deviation)
∑ 𝑓𝑑
𝑋̅ = A + ( )xC
𝑁
Example1
Find AM for following data. data.
CI: 0-10 10-20 20-30 30-40 40-50
f : 15 20 25 20 15

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 Example2:
Find the value such that AM for the distribution is 4.
X: 2 4 6 8 P
f: 5 10 15 20 25

Median (M)
For Ungrouped data

→ It is the middle most observation , provided the observation are sorted (arranged either in
ascending or descending Order)

→ If the number observations (n) is odd then,

𝑛+1 th
M=( ) observation
2

→ If ‘n’ is even Then,

𝑛 𝑛+2 th
M = Am of ( 2)th & ( ) Observations.
2
Note :-
Median is an appropriate measure of Central tendency for open end classes.
→ Like AM, median is also rigidly defined.

247 | P a g e
 → Median is regarded as a postitional average

Example1
Find the median of 30,20,40, 70, 10,50

Example2:
Find the value of x such that the median for the distribution
𝒙 𝒙 𝒙 𝒙 𝒙
x, , , , , 𝒊𝒔 𝟐𝟓.
𝟑 𝟔 𝟗 𝟏𝟐 𝟏𝟓

Median for discrete grouped data

𝑁+1
M=( ) th value
2
Procedure :-

1. Find less than cumulative frequencies (LCF)

248 | P a g e
 𝑁+1
2. Mark cf such that, that cf > ( )
2

3. The Corresponding ‘x’ value will be the median

Example1
Find the median for the following frequency distribution
x: 1 3 5 7 9
f: 3 5 7 8 2

Example2:
Find the median for the following frequency distribution
x: 4 8 12 16 20
f: 3 6 9 12 15

249 | P a g e
 Median for Continuous grouped data
𝑁
−𝑐𝑓
M= l1 + (2
)x c
𝑓

where l1 → LCB of a median class

1₂ → UCB of Median class
C→ length of the median class = l₂ - l1

f→ Median class frequency

Note:-

1. Median class is the class next to the cf.

𝑁
2. cf is the Lcf just less than 2

Example1
Find median
CI 0-9 10-19 20-29 30-39 40-49
F 10 30 50 30 10

250 | P a g e
 Example2:
Find median
CI : 0-20 20-40 40-60 60-80 80-100
f : 15 20 25 20 15

Mode (Z)
For Ungrouped data
→ It is the observation that occurs most number of times.
Ex1:- Find mode for the observations 10, 20, 30, 40, 50
Solution: Since no observation is repeated. Therefore mode is not defined for this data
Ex2 : Find mode for the observations 10, 20, 10, 20, 30
Solution: Mode: 10 and 20
Ex 3: Find the mode for the observations
10, 20, 10, 20, 10

251 | P a g e
Solution: Mode: 10
Mode for grouped data
𝑓 −𝑓
Z=l₁+ (2𝑓 −1 𝑓 −0 𝑓 ) ×C
1 0 2

where,
l1 → LCB of modal class
C → modal class length
C = l2 - l1
1₂ → UCB of modal class
f1→ frequency of the modal class (highest frequency)
f0 →frequency of pre modal class
f2 → frequency of post modal class.
Example1
Find the mode of the distribution
CI 0-9 10-19 20-29 30-39
F 10 20 40 15

Example2:
CI 0-20 20-40 40-60 60-80
F 10 50 20 5

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Relationship between mean, Median & mode
a) For symmetrical distribution
Mean= median= Mode
b) For positively skewed (skewed right) distribution
Mean> median > mode
c) For negatively skewed (skewed left) distribution
mode > median> mean
d) For moderately skewed distribution
Mean-mode = 3(mean-Median)
Or
Mode = 3 median-2 Mean
Example1
For moderately skewed distribution the difference between mean & mode is 75. Find the
difference between mean & median.

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Example2:
For a moderately skewed distribution if mean = 6, median= 8 then find mode

Note:-
→ AM gets affected by extreme values & also by sampling fluctuations.
→ Median is not affected by extreme values & sample fluctuation.
→ Mode may or may not get affected due to extreme values.
Note:-
→ The sum of the deviations taken from AM is zero.
i.e. ∑(𝒙 − 𝒙
̅) = 0
→ The sum of absolute deviations is minimum when taken from Median.
i.e ∑ |𝒙 – 𝑴 | is minimum

Partitions
→ These are the values dividing the given set of observations into number of equal parts.
Types of partitions
a) Quartiles
→These are the values dividing the given set of observations into 4 equal parts.
→Number of partition points = 3

254 | P a g e
b) Deciles
→These are the values dividing the given set of observations into 10 equal parts.
→Number of partition points = 9

c) Percentiles
→These are the values dividing the given set of observations into 100 equal parts.
→Number of partition points =99
For Ungrouped data

𝑖 𝑖 𝑖
Qi = [4 (𝑛 + 1)]th value , Di = [10 (𝑛 + 1)]th value , Pi = [100 (𝑛 + 1)]th value

where , n is number of observations

where Q1→ lower quartile
Q3 → upper quartile
Q₂ →Median
For discrete grouped data
𝑖 𝑖 𝑖
Qi = [4 (𝑁 + 1)]th value , Di = [10 (𝑁 + 1)]th value , Pi = [100 (𝑁 + 1)]th value
where N = ∑ 𝑓
For Continuous grouped data:-
𝑖𝑁 𝑖𝑁 𝑖𝑁
−𝑐𝑓 −𝑐𝑓 −𝑐𝑓
Qi = l1 + [ 4 𝑓 ]xC, Di = l1 + [10 𝑓 ]x C , Pi = l1 + [100𝑓 ]xC

𝑖𝑁 𝑖𝑁 𝑖𝑁
where > 𝑐𝑓 , > 𝑐𝑓 , > 𝑐𝑓
4 10 100

Partition class is a class next to cf.

f → The frequency of Partition class.
l1,→ LCB of Partition class
l2,→ UCB of Partition class
C = l2 – l1
Example1
1. Find Q1 and D8 for 15, 25, 35, 65, 55, 40

255 | P a g e
Example2:
Find P30
x 2 4 6 8 10
f 3 2 7 8 3

Example3
Find Q3.
CI 0-10 10-20 20-30 30-40 40-50
F 5 10 20 15 10

256 | P a g e
Note :- Median in terms of partitions:
𝐐𝟏 + 𝐐𝟑
→ M = Q2 = 𝟐

Geometric Mean (GM)

It is an appropriate measure of central tendency when the observations are in terms of percentages
or ratios.
If x & y are 2 variables then
• GM(xy) = GM of x × GM of y
• GM(x/y) = (GM of x )/(GM of y)
The logarithm of GM of given set of observation is the Arithmetic mean of the logarithm of those
observation.
1
Log (GM) = 𝑛 ∑ log 𝑥

GM For Un grouped data

GM = (X1 x X2 x X3 x …….. x Xn)1/n

Or
n
(GM) = (X1 x X2 x X3 x …….. x Xn)
where
n → no of observations.
Note :-
Finding nth root other than square root is not possible in simple calculators. So
students are advised to use option hitting method to solve the questions on GM.
(option)n = product of observations

Example1
Find the GM of 8, 10 & 12

257 | P a g e
 a)9.8648 b) 10.8648 c) 11.8648 d) none

Example2:
Find GM of 10,15,20,25
a) 15.5487 b) 16.5487 c) 14.5487 d) 17.5487

GM of any two observation a & b

GM = (a x b)1/2
GM = √𝑎𝑏
Ex:- Find the GM of 20 & 40
Solution :-
Gm = √𝑎𝑏
= √20 𝑥 40 = 28.28

GM for grouped data

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 1
GM = (𝑋1 𝑓1 . 𝑋2 𝑓2 . 𝑋3 𝑓3 . … … . . 𝑋𝑛 𝑓𝑛 )𝑁
Example1
Find GM of
x:1 2 3
f:1 2 3
a) 1.1822 b) 2.1822 c) 3.1822 c) 4.1822

Example2:
Find GM
x:2 4 8
f:1 2 3
a) 4.0396 b)5.0396 c)3.0396 d)6.0396

Harmonic mean(HM)
• It is the reciprocal of the AM of reciprocals of the given set of Observations.
• It is also regarded as the ratio average

For Ungrouped data

𝑛
HM = 1
∑( )
𝑥
Where
n→ no of observations
259 | P a g e
 1 1 1 1
∑ = + + ⋯..…+
𝑥 𝑥1 𝑥2 𝑥𝑛

For Grouped data

𝑁
HM = 𝑓
∑( )
𝑥
Where, N = ∑ 𝑓
𝑓 𝑓 𝑓2 𝑓
∑( ) = 1 + + ⋯ … … . + 𝑥𝑛
𝑥 𝑥 1 𝑥2 𝑛
Combined HM
𝑛1 + 𝑛2
Combined HM = 𝑛1 𝑛2
+
𝐻1 𝐻2

Where, 𝑛1 & 𝑛2 → no. of observations

H1 & H2 → Harmonic means
HM of any two observations
𝑛 2 2𝑎𝑏
HM = 1 =1 1 =
∑ + 𝑎+𝑏
𝑥 𝑎 𝑏

Note :- The above formula is used to find average speed for equal distances to be travelled.

Example1:
Find HM of 5, 6 , 9 , 12

Example2:
Find HM.
x:3 6 9 12 15
f :6 8 4 3 4

260 | P a g e
 Example3:
There are 2 groups having 15 & 35 Observations, respectively.with 45 & 105 as the
respective HM's. Find the combined HM.

Example4:
An aeroplane flies from Chennai to Bangalore at 400 kmph & returns from Bangalore to
Chennai at 500 kmph find the average speed of the journey

Relationship between AM, GM and HM

→If the observations are Positive and equal, then

AM = GM = HM
261 | P a g e
 → If the observations are Positive and distinct, then
AM>GM>HM
→ For any two observations a & b , GM is the GM of AM and HM
i.e GM = √𝐴𝑀 𝑥 𝐻𝑀

→ AM GM & HM Possess mathematical Properties ( As their combined measures are defined)

→ Weighted AM
∑ 𝑤.𝑥
Weighted AM = ∑𝑤
Where, w is weight
Similarly
∑𝑤
Weighted HM = 𝑤
∑( )
𝑥
and
∑ 𝑤.log 𝑥
weighted GM = Antilog ( ∑𝑤
)

Note:
If x & y are 2 variables related as ax + by + c = 0 & given Central tendency of x.
Then to find central tendency of y,
replace x & y (in the equation ax + by + c = 0) by C.T of x & CT of y.

Example1:
x & y are related as 3x – 2y – 10 = 0 & AM of x is 15. Find AM of y.

Example2:
If the mode of x is 8, then find the mode of (4x – 5)

262 | P a g e
Dispersion:
• An amount of deviation in the observations from the measure of central tendency is referred to
as dispersion
• Central tendency measures are said to be first order measures , whereas Dispersion
measures are said to be 2nd order measures
Measures of Dispersion
There are 2 types of measures. Namely
a)Absolute measures b) Relative measures
Note :-
Absolute measures are dependent on unit of variables where as relative measures are
unit independent

Absolute Measure Relative measure

1) Range 1) Coefficient of Range.

2) Mean Deviation (MD) 2) coefficient of MD
3) standard deviation (SD) 3) coefficient of variation (cv)
4) Quartile Deviation (QD) 4) Coefficient of QD

Range:
Both for ungrouped and grouped data
Range = L –S
Where, L is largest observation
S is the smallest observation
𝑳−𝑺
Coefficient of Range = ( 𝑳+𝑺 ) x 100

263 | P a g e
 Example1:
Find the range and its coefficient for the observations 10 , 20 , 30 , 40 , 50 , 60 , 70 , 80,
100, 120

Mean Deviation (MD)

For ungrouped data:
∑ |x –𝑥̅ |
• MD about mean = 𝑛
∑ |x – M |
• MD about Median = 𝑛
∑ |𝑥−𝐴|
• MD about Assumed mean (A) = 𝑛
Where ,
n is no. of observations
For grouped (both for discrete & Continuous)
∑ 𝑓.|𝑥−𝑥̅ |
• MD about x̅ = 𝑁
∑ 𝑓.|𝑥−𝑀|
• MD about M = 𝑁
∑ 𝑓.|𝑥−𝐴|
• MD about A = (A is assumed mean)
𝑁

𝑴𝑫 𝒂𝒃𝒐𝒖𝒕 ̅𝒙
Coefficient of MD about𝒙
̅= ̅
x 100
𝒙

𝑴𝑫 𝒂𝒃𝒐𝒖𝒕 𝐀
Coefficient of MD about A = x 100
𝑨
𝑴𝑫 𝒂𝒃𝒐𝒖𝒕 𝐌
Coefficient of MD about M = x 100
𝑴

Example1:
what is the value of mean deviation about mean for the numbers 4 ,5 , 6 , 8 , 3

264 | P a g e
 a) 5.2 b) 7.2 C) 1.44 d) 2.23

Example2:
what is the value Mean deviation about median for the numbers
4, 9, 11, 14, 37
a) 11 b) 8.5 c) 7.6 d) 7.45

Example3:
Find MD about M for the data given
X: 2 4 6 8 10
f:5 3 8 4 5

265 | P a g e
 Standard deviation (SD)
→The reference central tendency measure for SD is AM.
→ SD is the best measure of dispersion
For Ungrouped data
∑ 𝑥²
SD= √ − (𝑥̅ )2
𝑛
∑𝑥
Where 𝑥̅ = 𝑛
OR
∑(𝑥−𝑥̅ )2
SD = √ 𝑛
S.D for grouped data
∑ 𝑓.𝑥 2
SD = √ − (𝑥̅ )2
𝑁
∑ 𝑓𝑥
where x̅ = 𝑁
OR
∑ 𝑓(𝑥−𝑥̅ ) 2
SD = √ 𝑁

Example1:
Find SD of 2, 4, 6 , 8 , 10, 12

266 | P a g e
 Example2:
Find S.D of
CI: 0-10 10-20 20-30 30-40 40-50
f : 10 20 30 20 10

Properties of S.D
SD of any 2 no’s a & b
𝑎−𝑏 𝑅𝑎𝑛𝑔𝑒
SD of a & b = | 2
| = 2
S.D remain unaltered on shift of origin but changes with change of scale
(Shift of origin -> Adding or subtracting each observation by the same number
change of scale -> Multiplying or dividing each observation by same number.

SD of Ist ‘n’ natural number [SD of n Consecutive natural nos]

𝑛2 −1
SD of first ‘n’ natural number = √ 12

variance
variance = (SD)2
2
∑(𝑥−𝑥̅ )2 ∑(𝑥−𝑥)2
= [√ ] =
𝑛 𝑛

267 | P a g e
 Coefficient of Variation (CV)
→ It is a statistical tool used to test the consistency of the data
→ Lesser the CV, greater will be the consistency and vice versa.
𝑆𝐷
CV = 𝐴𝑀 × 100
Example1:
Find the SD ,
Given, CV = 45% & AM = 100.

Example2:
Find CV if Variance is 36 and AM = 10

Combined SD

If there are 2 group with 𝑛1 & 𝑛2 as the respective number of Observations, ̅̅̅&
𝑥1 𝑥2 as the
̅̅̅
respective Am’s & S1 & S2 as the respective SD’s then
𝑛1 𝑠1 2 + 𝑛2 𝑠2 2 +𝑛1 𝑑1 2 +𝑛2 𝑑2 2
Combined SD = √ 𝑛1 +𝑛2
where ,
d12 = (𝑥
̅̅̅1 – 𝑥̅𝑐 )2
d22 = (𝑥
̅̅̅2 – 𝑥̅𝑐 )2
𝑥̅𝑐 → Combined mean
𝑛1 ̅𝑥̅̅1̅ + 𝑛2 ̅𝑥̅̅2̅
𝑥̅𝑐 = 𝑛1 + 𝑛2

Example1:

268 | P a g e
 If two sample of sizes 35 & 25 have means as 50 & 60 & SD’s as 3&4 respective then find the
Combined SD.

Example2:
The mean marks of 30 boys and 40 girls are 70 and 80 respectively. Their respective SD’s are
5 and 6. Find the combined SD.

Quartile Deviation (QD)

→ It is an appropriate measure of dispersion for open end classification.
𝑄3 −𝑄1
→ QD = 2
→ 𝑄3 − 𝑄1 is called as the inter quartile range
𝑄3 −𝑄1
∴ = QD is called as the semi inter quartile range.
2
𝑄 −𝑄
Coefficient of QD = 𝑄3 +𝑄1 x 100
3 1
OR
𝑄𝐷
Coefficient of QD = x 100
𝑀
Where M → Median.
Example1:
269 | P a g e
 Find QD for the following data
x:1 2 3 4 5
f:6 8 5 6 4

Relationship between SD, MD, & QD for Normal or symmetrical distribution

2SD= 2.5 MD = 3QD
Note: SD > MD > QD

If x & y are 2 variable related as ax + by + c =0, with dispersion of x given then,

𝑎
Dispersion of y= |𝑏| × dispersion of x
Ex1:- If x & y are related as 5x + 4y + 10 =0 , & MD of x is 15. Find MD of y.

Ex2 :- If the variance of x is 25. Then find the variance of (2x +10)

270 | P a g e
 Practice questions:
1.For open-end classification, which of the following is the best measure of central
tendency?
a. AM b) GM c) Median d) Mode
2. The difference between maximum and minimum value of the data is known as :
a) Range b) Size c) Width d) Class
3 If the range of a set of values is 65 and maximum value in the set is 83, then the minimum
value in the set is
a) 74 b) 9 c) 18 d) None of these
4. If G.M = 5 and A.M = 7.5 then the two numbers are
a) 10, 5 b) 11, 4 c) 13.09, 1.91 d) 12, 3
5. Which of the following statement is true?
a. a.Median is based on all observations
b. b.The Mode is the mid value
c. c.The Median is the 2nd Quartile
d. d.The Mode is the 5th decline
6. If for a normal distribution Q1= 54.52 and Q3 = 78.86, then the median of the
distribution is
(a) 1 2 . 1 7 (b) 66.69 (c) 39.43 (d) None of these
7. If the mean of data is 55.6 and the mode is 46, then the median is
a. 50.4 b) 40.7 c) 52.4 d) None
8. GM of 8, 4, 2 is
a)4 b) 2 c) 8 d) None
9. & are called ratio averages
a) H.M & G.M b) H.M & A.M c) A.M & G.M d) None
10. When the mean is 3.57 and mode is 2.13, then the value of median is
(a) 3.09 (b) 5.01 (c) 5.01 (d) none of these.

271 | P a g e
11. Which of the following is positional average?
a)Median (b) GM (c) HM (d) AM
12. Which one of the following is not a central tendency?
a)Mean Deviation (b) Arithmetic mean (c) Median (d)Mode
13. The means of 20 items of a data is 5 and if each item is multiplied by 3, then the new mean will
be
(a) 20 (b) 5 (c) 15 (d) 10
14.

a) 1 b) 0 c) -1 d) None of these
15. The mean of four observations is 10 and when a constant a is added to each observation,
the mean becomes 13. The value of a is
a. 2 b) –3 c) 3 d) None of these
16. A Random variables X follows uniform distribution in the interval [-3, 7]. Then the mean of
distribution is
a) 2 b) 4 c) 5 d) 6
17. The median of the data 5, 6, 7, 7, 8, 9, 10, 11, 11, 12, 15, 18, 18 and 19is

(a) 10 (b) 10.5 (c) 11.5 (d) 11

18. If the standard deviation for the marks obtained by a student in monthly test is 36, then
the variance is
(a) 36 (b) 6 (c) 1296 (d) None of the above
19. If the values of all observations are equal then the Standard Deviation of the given
observations is
a. 0 b) 2 c) 1 d) None of these
20. If variance= 100 and coefficient of variation = 20% then AM is
(a) 60 (b) 70 (c) 80 (d) 50

21. The mean and coefficient of variance is 20 and 80 find the value of variance
(a) 16 (b) 256 (c) 36 (d) none
22. If the mean of frequency distribution is 100 and coefficient of variation is 45% then
standard deviation is.
a. 45 (b) 0.45 (c) 4.5 (d) 450

272 | P a g e
23. Which of the following measures of dispersion is used for finding consistency between the
series?
a. Q.D b) S.D c) Coefficient of variation d) none
24. The sum of mean and SD of a series is a+b, if we add 2 to each observation of the
series then the sum of mean and SD is
(a) a + b+ 2 (b) 6 + a + b (c) 4 + a – b (d) a + b + 4
25. The standard deviation for the set of numbers 1, 4,5,7,8, is 2.45 nearly. If 10 is added
to each number then new standard deviation is
(a) 24.45 (b) 12.45 (c) 2.45 (d) 0.245
26. If every observation is increased by 5 then:
a. SD increase by 5 (b) MD increased by 5
(c) QD increases by 5 (d) none affected
27. The Standard deviation is independent of change of
a. O r i g i n b) Scale c) Both d) none
28. Range of values 4, 3, 1, 6, 7, 10, 8 is
a) 9 b) 7 c) 6 d) None
29. Q.D is
a. 2/3 S.D b) 4/5 S.D c) 5/6 S.D d) None
30. What will be the probable value of mean deviation? when Q 3 =40 and Q1 =15
a) 17.50 b) 18.75 c) 15.00 d) None of the above
31. In normal distribution the relation between Q.D, S.D is
a) Q.D > S.D b) Q.D < S.D c) Q.D = S.D d) None
32. Measures of central tendency for a given set of observations measures
(a) The scatterness of the observations (b) The central location of the observations
(c) Both (a) and (b) (d) None of these.
33. the most commonly used measure of central tendency is
(a) AM (b) Median (c) Mode (d) Both GM and HM.
34. Which measure(s) of central tendency is (are) considered for finding the average rates?
(a) AM (b) GM (c) HM (d) Both (b) and (c)
35. The measure of central tendency which is most affected by extreme observations is—
(a) Mean (b) Median (c) Geometric mean (d) Mode
36. Which of the following averages would be more suitable for ascertaining average size of shoes—
(a) Arithmetic mean (b) Mode (c) Geometric mean (d) Median

273 | P a g e
 Chapter 15-Probability
→ It is a chance of occurance of an event.
If ‘A’ is an event then the probability of occurance of A is given by
𝑛(𝐴)
P(A) = 𝑛(𝑆)

Where n(A) is number of favourable outcomes

n(S) is total number of possible outcomes
Initially probability was a branch of mathematics
Classification of probability
Probability is broadly classified into
a) Subjective probability:
Is is based on one’s experience and observation
b) Objective probability:
It is based on mathematical facts
Note:
→Probability of an event lies between 0 and 1 (both inclusive)
→If the probability of an event is equal to 0. Then it is said to be impossible or improbable
event.
→If the probability of an event is equal to 1. Then it is said to be a sure event.
→If the probability of an event lies between 0 and 1 then it is said to be a possible or probable
event.
→The sum of the probabilities of occurance of an event and non occurance of the same event
is equal to 1.
i.e. P(A) + P(A′) = 1
Where A’ is non occurance of an event A.
→An event which can produce only one outcome is said to be a simple event
Ex: Getting a number 2 on tossing a die once, where the outcome is only 2
→An event which can produce more than one outcomes is said to be a composite or
compound event. Ex: getting number multiple of 2 on tossing of a coin , where the outcomes
are 2,4,6

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Sample Space (S):
It is a set of all possible outcomes
Sample space for tossing of a coin
→ When a coin is tossed once
S = { H, T}
n(S) =2
→ When a coin is tossed twice
S = {HH, HT, TH, TT}
n(S) =4
→ When a coin is tossed thrice
S ={ HHH, HHT, HTH, THH, TTH, THT, HTT, TTT}
n(S) = 8
Note: n(S) = 2n for tossing of a coin
n is no. of tosses
Note:
The probability of getting head and tail alternatively on tossing a coin ‘n’ times is
𝟐
= 𝟐𝒏

Example:
Find the probalility of getting head and tail alternatively on tossing a coin 6 times

Sample space for tossing/rolling of a die (dice)

a) When tossed once
S = {1,2,3,4,5,6}
n(S) =6
b) When tossed twice
S = { (1,1), (1,2), (1,3) , (1,4) , (1,5) , ( 1,6)
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 (2,1) , ………………………..(2,6)
(3,1) , ………………………..(3,6)
(4,1) , ……………………….(4,6)
(5,1), ………………………...(5,6)
(6,1), ………………………..(6,6) }
n(S) = 36
When a die is rolled twice ( 2 dice rolled simultaneously

Sum of Favourable outcomes Probability

points

2 1 1/36

3 2 2/36 = 1/18

4 3 3/36 =1/12

5 4 4/36 = 1/9

6 5 5/36

7 6 6/36 = 1/6

8 5 5/36

9 4 4/36

10 3 3/36

11 2 2/36

12 1 1/36

Note: n(s) =𝟔𝒏 for tossing a die

Where n is number of tosses

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Sample space for deck of cards
Total number of cards = 52
a)Red (26)
i)Hearts (13)
ii)Diamonds (13)
a)Black (26)
i)Spades (13)
ii)Clubs(13)
Each suit of 13 cards consists of :
Number cards = 9 ( 2-10)
King =1
Queen =1
Jack =1
Ace =1
No of face cards:
King, queen and jack are face cards.
Therefore the number of face cards = 4+4+4 = 12
Simple Problems on Tossing of a coin, Tossing of dice and Deck of cards
Example1:
A Coin is tossed twice what is the probability that atmost 1 head occurs.

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Example2:
A coin is tossed thrice. What is the probability that exactly 2 heads occur

Example3:
A Coin is tossed thrice what is the probability that at least 1 head occuss.

Example4:
Two dice are tossed simultaneously, Find the probability of getting a doublet.

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Example5:
Two dice are tossed simultaneously. What is the probability that the sum of two
point is equal to 7.

Example6:
A card is drawn at random from a well shuffled deck of 52 cards. What is the probability that
the card is a face card of spades.

Example7:
A card is drawn at random from a deck of 52 cards what is the probability that the card is a
numbered card of red .

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For any 2 events A & B
1.The probability that either A or B occurs (probability that at least 1 event occurs)
P(AUB) = P(A) + P(B) – P(A⋂B) → eqn1
where, P(AUB) →probability of A or B
P(A∩B) → probability of A and B
Note :-
Equation  is also called as addition theorem of probability.
2. If A & B are mutually Exclusive
Two events A&B are said to be mutually exclusive when there is nothing Common between the two
events.
P(A∩B) = 0
P(AUB) = P(A) + P(B) → eqn2
3. A & B are said to be exhaustive when n(AUB) = n(s).
n(AUB)
P (AUB) = 𝑛(𝑠)

P(AUB) = 1 → eqn3
If A&B are mutually exclusive & exhaustive
P(AUB) = 1 for exhaustive events
P(A∩B) = 0 for mutually exclusive event
Now P(AUB) = P(A) + P(B) – P(A⋂B)
1= P(A)+P(B) -0
i.e P(A)+P(B) = 1

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5.Conditional Probability
If A&B are 2 events, with B has already occurred then the probability of occurrence of A is P(A/B) =
P(A∩B) n(A∩B)
=
𝑃(𝐵) 𝑛(𝐵)

→Probability of Occurance B, given that event A has already occurred.

P(A∩B) n(A∩B)
P(B/A) = =
𝑃(𝐴) 𝑛(𝐴)

Example:
There are 50 men & 30 women in a locality. Out of them 35 men & 15 women are service holders. If
one person is selected at random, then what is the Probability that the selected person is a service
holder given that the person selected is a woman.

5. Independent events
→ Two Events are said to be independent if occurrence or Non-occurrence of one event
doesn't affect occurrence or non-occurrence of other event
i.e
• P(A/B) = P(A)
• P(B/A) = P(B)
• P(A/B’) = P(A)
• P(B/A’) = P(B)

→ If the 2 events A & B are independent then P (A∩B) = P(A)X P(B) (Multiplication theorem of
probability
→If the 2 events are mutually exclusive then they can't be independent & vice-versa.
7.Probability of occurrence of only A (out of A & B)
P(A-B) = P (A∩BI) = P(A) -P(A∩B)
8.Probability of occurrence of only B
P(B-A)=P(B∩Al) = P(B) -P(A∩B)
9.Probability of occurrence of only 1 event
only one Event means only A or only B
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→P(A)-P(A∩B] + P(B) -P (A∩B)
→ P(A) + P(B) - 2P(A∩B)
10.If the events A&B are equally likely
→Equally likely events will have equal probabilities
P(A) = P(B)=K
Where K is a constant
For any 3 events A,B, & C
1. probability that at least one event occurs is
P (AUBUC) = P(A) + P(B) + P(c) -P (A∩B)-P(B∩C)- P(A∩C) + P(A∩B∩C) →
2. If A, B, C are mutually exclusive then
P(A∩B) = 0
P(B∩C) =0
P(A∩C) = 0
P(A∩B∩C) = 0
Now  => P(AUBUC) = P (A) + P(B) +P(C)→ 2
3. If A, B, C are Exhaustive then n(AUBUC) = n(S)
P(AUBUC) = 1 → 3
4. If A.B, C are mutually exclusive & exhaustive then
P(A) +P (B) +P(C) = 1 [:. By combining ② & ③]
5. If A, B, C are equally likely then
P(A)= P(B) = P(C) = K
Where K is a constant.
De Morgan’s Theorem
1) P(Al∩Bl) = P(AUB)′
2) P(A'UB') = P (A∩B)′
Note :-
P(AUB) ′ = 1- P (AUB)
This formula is to be used when the Probability of occurrence of neither A nor B is asked.
Sample Space for leap year and non leap year problems
a) Non Leap year:
Total number of days in non leap year = 365

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No. of odd days =1
The sample space for this odd day is S = {Sunday, Monday, Tuesday, Wednesday, Thursday, Friday,
Saturday}
n(S) = 7
Note: P(A∩B)=0 for non leap year problems
b) Leap year
Total number of days in a leap year = 366
No. of odd days =2
Sample space for these two odd days is
S ={Sun-Mon, Mon-Tue, Tue-Wed, Wed-Thur, Thur-Fri, Fri-Sat, Sat-Sun }
n(S) = 7
Note:P(A∩B) = 0 if the 2 days given are non successive days
P(A∩B) =1/7 if the 2 days given are successive days.
Problems on 2 events & 3 events
Example1:
2 dice are tossed simultaneously. Find the probability of getting the sum neither 8 nor 9.

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Example2:
A card is drawn at random from a well shuffled deck 52 cards. what is the probability that the Card is
either a face card or red

Example3:
The probabilities of a Person getting qualified for 2 different entrance exams are 1/3 & 3/4 .
Find the probability that he would get qualified in one of the 2 exams.

Example4:
1 1 3
There are 3 events A,B,C having probabilities 2 , 3 & 4 . If the Probabilities of Occurrence of A&B, B&C,
1 1 1 1
A&C and A & B & C are , , and 15 respectively. Then find the probability of occurrence of at least
3 5 6
one event.

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Example5:
What is the probability of getting 53 sundays or 53 wednesdays in a non leap year

Example6:
What is the probability of getting 53 Fridays or 53 Saturdays in a leap year

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Random variable & probability Distribution
Random variable (x)
It is a function defined on a sample Space associated with a random experiment assuming any real
number. It is denoted by x.
Probability Distribution :-
It is the distribution of a random variable with corresponding Probability
Note: ∑ 𝑷(𝒙) = 𝟏
Mathematical Expectation of x
→ It is also called as expected value or mean
→ It is denoted by E(x)
→ E(x) = ∑ 𝑥. 𝑃(𝑥)
→ E(x²) = ∑ x². P(x)
Variance of X :
V(x) = E(x²) – [E(x)] ²
Example1:
write down the probability distribution for getting head on tossing a coin twice.

Example2:
Find the expected value & variance of getting heads on tossing Coin thrice

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Example3:
Find the mathematical expectation of number on the upper face of the dice, when rolled once

Properties of E(x)
(i) E(K) = K
Where 'k' is a constant.
(ii) E (x+y) = E(x) + E(y)
(iii) E(XY) = E(x) x E(y)

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(iv) E(a+bx) = a + b E(x)
Ex:-
E(3 + 2x) = 3+ 2 E(x)

Baye's theorem
If E₁, E₂, E3 ……….. En are the events which are mutually Exclusive
and 'A' is an event which has already occurred
Then probability of occurance of Ei given that ‘A’ has already Occurred is.
P(A/𝐸 ), P(𝐸 )
P(Ei/A) = ∑ P(A/𝐸𝑖 ),P(𝐸𝑖 )
𝑖 𝑖

where i can be 1, 2, 3, 4……….n

∑ P(A/Ei) .P(Ei)= P(A/E1) P(E1) + P(A/E2). P(E₂) +...

Example:
There are 3 bags.
Bag 1 consists of 3 red & 4 white balls
Bag 2 consists of 4 red & 5 white balls
Bag 3 consists of 5 red & 2 white balls
If one ball is drawn at random. then what is the probability that the ball is selected from bag2 given
the selected ball is red

odds in favour and against the occurrence of an event :-

•
If the odds in favour of an event is given as a:b.

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Then ‘a’ is the no. of favourable outcomes, where as ‘b’ is against it. & a+b = n(S)
•
If the odds against of an event is given as a:b.
Then b is the number of favourable outcomes and a is number of against outcomes.
& a+b = n(S)
Example:-
If the odds in favour of an event 2:3 then find the
Probability of
(i) occurrence of an event
(ii) Non-occurrence an event

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 Problems involving Combination
Example1:A bag consists of 5 red ball, 3 blue balls & 2 green balls.
If 4 balls are drawn at random, them what is the probability that all of them being red balls.

Example2:
A bag Consists of 9 balls of which 5 are blue. If 3 balls are selected at random. Then what is the
probability that out of 3 balls 2 are blue.

Practice questions:
1) A dice is thrown once. What is the mathematical expectation of the number on the dice?
(a)16/6 (b)13/2 (c)3.5 (d)4.5
2) If P (A/B)= P (A), then A and B are
(a)Mutually exclusive events (b)Dependent events
(c)Independent events (d)Composite events
3) A bag contains 3 white and 5 black balls and second bag contains 4 white and 2 black balls. If one ball
is taken from each bag, the probability that both the balls are white is ________

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 (a) 1/3 (b)1/4 (c)1/2 (d)None of the above
4) The odds in favour of A solving a problem is 5:7 and odds against B solving the same problem is 9:6.
What is the probability that if both of them try, the problem will be solved?
(a) 117/180 (b)181/200 (c)147/180 (d)119/180
5) Consider
Urn I : 2 white balls, 3 black balls
Urn II: 4 white balls, 6 black balls
One ball is randomly transferred from first to second urn, then one ball is drawn from II urn. The
probability that drawn ball is white is
(a)22/65 (b)22/46 (c)22/55 (d)21/45
6) If P(AUB) = P(A), Find P (A∩B).
(a) P(A).P(B) (b) P(A)+P(B) (c) 0 (d) P(B)
7) The probability of Girl getting scholarship is 0.6 and the same probability for Boy is 0.8. Find the
probability that at least one of the categories getting scholarship.
(a)0.32 (b)0.44 (c) 0.92 (d) None of the above
8) Exactly 3 girls are to be selected from 5 girls and 3 boys. The probability of selecting 3 girls will be:
5 1 15
(a) 28(b) 56 (c)28 (d) None
9) Two unbiased dice are thrown. The expected value of the sum of numbers of the upper side is:
(a)3.5 (b)7 (c)12 (d)6
10) One card is drawn from pack of 52, what is the probability that it is a king or a queen?
(a) 11/13 (b)2/13 (c)1/13 (d)None of the abov
11) In a packet of 500 pens, 50 are found to be defective. A pen is selected at random. Find the probability
that it is non-defective.
(a) 8/9 (b)7/8 (c)9/10 (d)2/3
12) Four married couples are gathered in a room. Two persons are selected at random amongst them. Find
the probability that selected persons are a gentleman and a lady but not a couple.
(a) 1/7 (b)3/7 (c)1/8 (d)3/8
13) A team of 5 is to be selected from 8 boys and 3 girls. Find the probability that it includes two particular
girls.
(a) 2/30 (b)1/5 (c)2/11 (d)8/9
14) Let A and B two events in a sample space S such that P(A) = 1/2, P(B ̅) = 5/8, P(AUB) = 3/4; Find P(A ̅∩
̅)
B
(a) 3/4 (b)1/4 (c)3/16 (d)None of the above
15) A card is drawn out of a standard pack of 52 cards. What is the probability of drawing a king or red
colour?
(a) 1/4 (b)4/13 (c)7/13 (d)1/2
16) A player tosses two fair coins, he wins Rs.5 if 2 heads appear, Rs.2 if one head appears and Rs.1 if no
head occurs. Find his expected amount of winning.
(a)2.5 (b)3.5 (c)4.5 (d)5.5

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17) Arun and Tarun appear for an interview for two vacancies. The probability of Arun’s selection is 1/3 and
that of Tarun’s selection is 1/5. Find the probability that only one of them will be selected.
(a)2/5 (b)4/5 (c)6/5 (d)8/5
18) Two dice are thrown together. Find the probability of getting a multiple of 2 on one dice and multiple of
3 on the other.
(a) 2/3 (b)1/6 (c)1/3 (d)None of the above
19) The odds against A solving a certain problem are 4 to 3 and the odds in favour of B solving the same
problem are 7 to 5. What is the probability that the problem will be solved if they both try?
(a) 15/21 (b)16/21 (c)17/21 (d)13/21
20) Find the expected value of the following probability distribution
x : -20 -10 30 75 80
p(x) : 3/20 1/5 1/2 1/10 1/20
(a) 20.5 (b) 21.5 (c) 22.5 (d) 24.5
21) A bag contains 6 red balls and some blue balls. If the probability of drawing a blue ball from the bag is
twice that of red ball, Find the number of blue balls in the bag.
(a) 10 (b) 12 (c) 14 (d) 16

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 Chapter 16-Theoretical Distribution
➔ We may think of a probability distribution in the same way as we see frequency distribution.
Just like distributing the total frequency to different class intervals, the total probability (i.e. one)
is distributed to different mass points in case of a discrete random variable or to different class
intervals in case of a continuous random variable. Such a probability distribution is known as
Theoretical Probability Distribution, since such a distribution exists in theory.
➔ Theoretical probability distribution may be profitably employed to make short term projections
for the future.
➔ Probability distribution possesses all the characteristics of an observed distribution, we can
define mean median, mode, standard deviation etc.
➔ A probability distribution can be discrete or Continuous
➔ Some Important discrete probability distributions are
(i) Binomial distribution (BD)
(ii) Poisson distribution (PD)
• Important continuous probability distribution is
Normal Distribution
Note: A parameter is a characteristic of any population..
Population mean is an example of a Parameter
Binomial distribution
➔ It is based on Bernoulli trials.
➔ It is one of the important discrete probability distribution.
➔ It is a biparametric distribution.
➔ The 2 parameters are n & p
Where n → no. of trials
p = probability of success.
➔ The Binomial probability mass function (PMF)
P(x) = ncx px qn-x
where x → Binomial variate
q→ probability of failure
Note :-
• For a binomial distribution
p+q=1

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 • If p=q the Binomial distribution will be Symmetric.
• If p<q then Binomial distribution is positively skewed
• If p>q then the Binomial distribution is negatively skewed
• An expression X~ B(n, p) is to be read as ‘x’ is a binomial variate with parameters n & p. x can
be 0, 1, 2, ………. n
→ Mean of a Binomial distribution.
mean = np

→ standard deviation of BD = √𝑛𝑝𝑞

2
Variance = (√𝑛𝑝𝑞) = npq

• For a Binomial distribution mean > variance

• Variance is maximum when p=q=0.5
• Binomial distribution is unimodal if (n+1)P is a non integer.
In that Case mode = Integral part of (n + 1)P
• Binomial distribution is bimodal if (n+1)p is an integer.
In that case, modes = (n+1)P and (n+1)p -1
➔ Additive property
X~ B(n1 ,p) & Y ~ B (n₂, p) Then
(X+Y) ~ B [(n1 + n₂), p]
➔ BD is applicable when the trials are independent and each trial has just 2 Outcomes Success
& failure. It is applied in coin tossing experiments, Sampling inspection plan, genetic
experiments etc.

Examples on Binomial distribution

Example1:
A coin is tossed 6 times. what is the probability of getting exactly 3 heads

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 Exampe2:
If overall percentage of success in an exam is 70. what is the probability that out of a
group of 5 students at least l has passed.

Example3:
For a Binomial distribution if 4p(x = 4) = p(x=2) with n = 6 then find q

Exampe4:
For a Binomial distribution the mean & variance are 5 & 3 respectively then find. p & q

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 Example5:
If ‘x’ is a Binomial variate with parameters 15 & 1/3 then the value of mode

Exampe6:
For a Binomial distribution n=4 & P(x=2) = 3p(x=3) then P= ?

Poisson's distribution (PD)

→ It is a preferred discrete theoretical distribution when n → ∞ (‘n’ tends to infinity & p → 0 ('p'
tends to 0) & np → finite value,
→ It is uni parametric distribution & the parameter is ‘m’.
→ 'm is the mean'. 'm' itself is the variance.
i.e for a poisson’s distribution
mean = variance.

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 → standard Deviation.= √m
→Mode:
If m is a non integer then PD is unimodal and mode = integral part of m
If m is an integer then PD is bimodal and modes = m and m-1
→ poisson's probability mass function is given by
𝑒 −𝑚 𝑚𝑥
P(x) = For x = 0,1,2, ….. ∞
𝑥!

where x is poisson's variate

→ The value of e= 2.72
→ The expression x~p (m) can be read as
x is a poisson's variate with a parameter ‘m’
Note: P(x=odd) = (1-𝑒 −2𝑚 )/2
P(x=even) = (1+𝑒 −2𝑚 )/2
Additive property of PD
If x ~ p(m1) & y~p(m2) Then,
(x+y) ~ P (m1 +m2)
Applications of PD:
It is used when the total number of events. or trials is large number & the probability of success
is very small.
If can be used in following cases.
(i) The distribution of no. of printing mistakes per page of a large book
(ii) The distribution of no. of road accident on a busy road per minute etc.
Note: Poisson’s distribution is always positively skewed.
Examples on Poisson’s distribution
Example1:
For a PD P(x=2) = 3p(x=4) then SD is

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 Exampe2:
In a certain PD the probability corresponding to 2 successes is half the probability
corresponding to 3 successes the mean of the distribution is

Example3:
If X ~ P (x) & its coefficient of variation is 50 then what is the probability that x would assume
only non zero values

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 Exampe4:
If 1.5% of items produced by a manufacturing unit are known to be defective. what is the
probability that a sample of 200 items would contain no defective item

Normal Distribution
It is one the important continuous Probability distributions, applicable for the distribution of
variables like height , weight, wages etc.
➔ It is a biparametric distribution.The 2 parameters are µ & 𝜎 2
where µ → mean , 𝜎 2 → Variance
➔ The normal probability mass function is given by
−(𝑥− µ)2
𝑒 2𝜎2
f(x) = for - ∞ < x < ∞
𝜎√2𝜋

• It is a symmetrical distribution having Zero skewness.

• for a normal distribution mean=median = mode
• The shape of normal distribution doesn’t depend on its parameters.
• Normal distribution is always unimodal
➔ Points of inflexion
➔ µ - 𝜎 & µ + 𝜎 are called as the Points of inflexion.
Here ‘𝜎’ is standard deviation.
➔ For a normal distribution the median is equi distant from 1st & 3rd quartiles
Q1 = µ -0.6745 𝜎
Q3 = µ + 0.6745 𝜎
𝑸𝟑 − 𝑸𝟏
• Quartile deviation (QD) = = 0.6745 𝝈
𝟐

➔ Mean deviation (MD) = 0.8 𝜎

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 ➔ The area under normal curve ,
➔ i-e from (- ∞ to + ∞) is 1
➔ Area from - ∞ to 0 is 0.5 & Area from 0 and ∞ is 0.5.
➔ Area between. µ -3𝜎 & µ +3𝜎 is 0.9973 (99.73%)
➔ Area between. µ – 2 𝜎 & µ + 2𝜎 is 0.9546 (95.46%)
➔ Area between µ – 𝜎 & µ + 𝜎 is 0.68 28 (68.28%)
➔ Additive property

If X ~ N (µ 1, 𝜎12) & y ~ N (µ 2, 𝜎2²)

Then (x+y) ~ N [(µ 1 + µ 2), (𝜎₁² + 𝜎2²)]

Note:- SD of (x + y) is √(𝜎₁² + 𝜎2²)

For area related problems
𝑥−µ 𝑎−µ
(i) p (x<a) = p ( < ) = P (Z<K)
𝜎 𝜎
(where K is a constant)
P(Z <k) = φ(K)
=>Area upto K
 Area from -∞ to 0 + Area from 0 to K
𝑎−µ 𝑥−µ 𝑏−µ
 (ii) P (a<x< b) =P[ < < )
𝜎 𝜎 𝜎

 = P(K1 < Z < K2)

 => φ (K₂) - φ (K₁)
 Note :- 1)K1 & K₂ are constants
 2) φ(-K) = 1- φ(K)
Standard normal Distribution:
The mean of Standard normal distribution is 0
The SD of Standard normal distribution is 1

Examples on Normal distribution

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 Example1:
If the two quartiles of the normal distribution are 14.6 and 25.4 respectively then. find its
standard deviation.

Exampe2:
If the quartile deviation of a normal curve is 4.05 then the mean deviation is.

Example3:
If the area of standard normal curve between Z=0 to Z=1 is 0.3413, then find the value of ᶲ (1)
?

Example4:

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 If x and y are 2 independent normal Variables with means as 10 & 12 and SDs as 3 & 4, then
(x+y) is normally distributed with mean =_____ and SD= _____

Example5:
There are 75 students in a class and their average marks is 50 and SD of masks is 5. The
number of students who Secured more than 60 marks is (Given that area from z=0 to Z=2 is
0.4772)

Central moments

Central Binomial distribution Poisson’s Normal

Moments Distribution distribution

µ1 0 0 0

µ2 npq m 𝜎2

µ3 npq(q-p) m 0

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µ4 3𝑛2 𝑝2 𝑞 2 +npq(1-6pq) m(3m+1) 3𝜎 4

Methods of curve fitting

• Method of moments is used to fit Binomial distribution and Poisson distribution curve
• Area method and ordinate methods are used to fit Normal distribution curve
Practice questions
1) The number of calls arriving at an internal switch board of an office is 96 per hour. Find the
probability that there will be:
I) Not more than 3 calls on the board
II) Exactly 3 calls in a minute on the board. [Given:𝑒 −1.6 = 0.2019]
a) 0.08 and 0.92 respectively b) 0.19 and 0.92 respectively
c) 0.92 and 0.13 respectively d) 0.92 and 0.08 respectively

2) The overall percentage of failure in a certain examination is 0.30. What is the probability that out of
a group of 6 candidates at least 4 passed the examination?
a) 0.74 b) 0.71 c) 0.59 d) 0.67

3) A manufacturer, who produces medicines bottles, find that 0.1 of the bottles are defective. The
bottles are packed in boxes containing 500 bottles. A drug manufacturer buys 100 boxes from the
producer of bottles. Using Poisson distribution, find how many boxes will contains at least two
defectives:
a) 7 b) 13 c) 9 d) 11

4) If 5% of the families in Kolkata do not use gas as a fuel. What will be the probability of selecting 10
families in a random sample of 100 families who do not use gas as fuel? [Given:𝑒 −5 = 0.00671]
a) 0.038 b) 0.028 c) 0.048 d) 0.018

5) The method usually applied for fitting a binomial distribution is known as:
a) Method of probability distribution b) Method of deviations
c) Method of moments d) Method of least squares

6) Examine the validity of the following:

Mean and standard deviation of a binomial distribution are 10 and 4 respectively.
a) Not valid b) Valid c) Both (a) & (b) d) Neither (a) nor (b)

7) In Poisson distribution, probability of success is very close to:

a) -1 b) 0 c) 1 d) None

8) Shape of Normal Distribution Curve:

a) Depends on its parameter b) Does not depend on its parameter
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c) Either (a) or (b) d) Neither (a) nor (b)

9) If the inflexion points of a Normal Distribution are 6 and 14. Find its standard deviation?
a) 4 b) 6 c) 10 d) 12

10) For binomial distribution

a) Variance < Mean b) Variance = Mean
c) Variance > Mean d) None of the above

11) If x and y are two independent normal random variables then the distribution of x + y is:
a) Normal b) T-distribution c) Chi-square d) F-distribution

12) If x is a binomial variable with parameters n and p, then x can assume

a) Any value between 0 and n b) Any value between 0 and n, both inclusive
c) Any whole number between 0 and n, both inclusive d) any number between 0 and infinity

13) Standard deviation of a binomial distribution is:

a)√𝑛𝑝 b) (𝑛𝑝)2 c)√𝑛𝑝𝑞 d) (𝑛𝑝𝑞)2

14) The wages of workers of factory follows:

a) Binomial Distribution b) Poisson Distribution
c) Normal Distribution d) Chi-square Distribution

15) For a binomial distribution if variance = (Mean)2, then the values of n and p will be:
a) 1 and ½ b) 2 and ½ c) 3 and ½ d) 1 and 1
c16. The area under the normal curve is
a) 1 b) 0 c) 0.5 d) -1 Type equation here.

17. For a normal distribution,

P(𝜇 − 2𝜎 < 𝑥 < 𝜇 + 2𝜎) is equal to
a) 0.9973 b) 0.9546 c) 0.9899 d) 0.9788

18. For ta binomial distribution B(6,p) , P(x=2) = 9 P(x=4), then P is

a) ½ b) 1/3 c) 10/13 d) ¼

19. If standard deviation of a poisson distribution is 2. Then its

a) mode is 2 b) mode is 4 c) modes are 3 and 4 d) modes are 4 and 5

20. In a binomial distribution, if mean is k times the variance, then the value of k is,
a) p b) 1/p c) 1-p d)1/(1-p)

21. If x ~ 𝑁(3,36)𝑎𝑛𝑑 𝑦~𝑁(5,64) are two independent normal variate with their standard parameters
of distribution, then if (x+y) ~ 𝑁(8, 𝐴) also follows normal distribution. The value of A will be……
a) 100 b) 10 c) 64 d) 36
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22.In a normal distribution quartile deviation is 6, the standard deviation will be
a) 4 b) 9 c)7.5 d) 6

23.For Poisson distribution:

a) mean and standard deviation are equal
b) mean and variance are equal
c) standard deviation and variance are equal
d) both a and b are correct

24. which of the following is not a characteristic of a normal probability distribution?

a) mean of the normally distributed population lies at the centre of its normal curve.
b) it is multi modal
c) the mean, median and mode are equal
d) it is symmetric curve

Chapter 17-Correlation and Regression

Correlation

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It is a tool using which one can know an extent to which two variables (bivariate data) are related.
i.e how the value of one variable(y) changes on changing the value of other variable(x).
Conditional distributions:
If there are p classifications for x and q classifications for y, then there would be total of (p+q)
conditional distributions
Note: For a bivariate frequency table having (p + q) classifications the total number of cells is
equal to pq
Marginal distributions:
For p x q bivariate distributions, the number of marginal distributions is 2
Correlation coefficient (r)
• It is the measure of correlation
• By looking at the value of r, one can know whether there exists a high degree , moderate
degree or low degree of correlation between two variable
Range of r
The value of r lies between -1 and +1 (both inclusive)
• If r=1 , then the correlation is perfect positive
• If r=-1, then the correlation is perfect negative
• If 0 < r<0.25 , then the correlation is low degree positive
• If 0.25 < r < 0.75 , then the correlation is moderate degree positive
• If 0.75< r < 1 , then the correlation is high degree positive
• If -1 < r< -0.75 , then the correlation is high degree negative
• If -0.75 < r < -0.25 , then the correlation is moderate degree negative
• If -0.25< r < 0 , then the correlation is low degree negative
• If r=0 then it is said to be no correlation or zero correlation
Spurious Correlation:
If there exists no casual relation between the variables, then they are said to be spuriously correlated
Ex: Age and height , height and weight etc.

Scatter diagram:
It is a diagrammatic representation of correlation

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 • Perfect positive correlation:
It is a straight line which extends from lower left to upper right

• Perfect negative correlation

It is a straight line which extends from upper left to lower right.

• Simple positive correlation

It is a curvi linear relation between the 2 variables, extending from lower left to upper right

• Simple negative correlation

It is a curvi linear relation between the 2 variables, extending from upper left to lower right

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 • No correlation (Zero correlation)
A graph which shows increase or decrease of one variable upto an increase in the value other
variable and thereafter it changes the other way.

Measures of Correlation Coefficient

Karl pearson’s Correlation Coefficient ( product moment correlation coefficient)
• When there exists a linear relation between the two variables then KPCC is the best measure
• If there exists a non linear relationship between x and y then 𝑟𝑥𝑦 = 0
𝐶𝑜𝑣(𝑥,𝑦)
• 𝑟𝑥𝑦 = 𝑆𝑥 .𝑆𝑦

𝑛 ∑ 𝑥𝑦 − ∑ 𝑥 ∑ 𝑦
𝑟𝑥𝑦 =
√[{𝑛 ∑ 𝑥 2 − (∑ 𝑥)2 } {𝑛 ∑ 𝑥 2 − (∑ 𝑥)2 } ]

Where 𝑟𝑥𝑦 is correlation coefficient between x and y

𝐶𝑜𝑣(𝑥, 𝑦) is covariance between x and y

𝑆𝑥 𝑎𝑛𝑑 𝑆𝑦 are SD’s of x and y respectively

• Karl pearson’s Correlation Coefficient ( when deviation is taken from AM)

∑ 𝒅𝒙.𝒅𝒚
𝒓𝒖𝒗 =
√(∑ 𝒅𝒙𝟐 ∑ 𝒅𝒚𝟐 )

∑ 𝒅𝒙. 𝒅𝒚
𝒓𝒖𝒗 =
𝑛𝑆𝑥 . 𝑆𝑦

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Where,
u =dx
v = dy

∑ 𝒅𝒙. 𝒅𝒚 𝒊𝒔 𝒔𝒖𝒎 𝒐𝒇 𝒕𝒉𝒆 𝒑𝒓𝒐𝒅𝒖𝒄𝒕 𝒐𝒇 𝒅𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏𝒔 𝒊𝒏 𝒙 𝒂𝒏𝒅 𝒚

∑ 𝒅𝒙𝟐 𝒊𝒔 𝒔𝒖𝒎 𝒐𝒇 𝒕𝒉𝒆 𝒔𝒒𝒖𝒂𝒓𝒆𝒔 𝒐𝒇 𝒅𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏𝒔 𝒊𝒏 𝒙

∑ 𝒅𝒚𝟐 𝒊𝒔 𝒔𝒖𝒎 𝒐𝒇 𝒕𝒉𝒆 𝒔𝒒𝒖𝒂𝒓𝒆𝒔 𝒐𝒇 𝒅𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏𝒔 𝒊𝒏 𝒚

Properties of Correlation coefficient:

• Correlation coefficient is independent of unit of measurement
• It remains unchanged in terms of magnitude but may or may not change interms of sign due to
shift of origin and change of scale
• If x and u are related by u = ax+b ----> eq1, y and u are related by v = cy+d ------> eq2
Then 𝑟𝑥𝑦 = 𝑟𝑢𝑣 ( when signs of x and y in the equations 1 and 2 are same)

𝑟𝑥𝑦 = -𝑟𝑢𝑣 ( when signgs of x and y in the equations 1 and 2 are different)

Example1:
Given Cov(x,y)= -16 , variance of x and y are 16 and 25 respectively. Find karl pearson’s Correlation
coefficient

Example2:
The sum of the squares of deviations of x and y are taken from respective AM’s are 144 and 169 and
the sum of the products of deviations is 120. Find the correlation coefficient between x and y

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Example3:
The correlation coefficient between x and y is 0.6. Given 2x +3u =10 & y-3v =5. Find the correlation
coefficient between u and v

To find the nature of r when x and y are related by an equation ax+by+c = 0

Note: The equation represents a straight line. Therefore the correlation can be either perfect positive
or perfect negative based on the signs of x and y in the equation ax+by+c = 0
On increasing x value if y also increases then it is perfect positive correlation
On increasing x value if y decreases then it is said to be a perfect negative correlation
Example:
Examine the nature of correlation between x and y related as 2x+3y=10

Shortcut:
If the signs of x and y are similar in the equation y=a+bx , then the correlation is perfect Positive
otherwise it is perfect negative

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Spearman’s Rank Correlation Coefficient
• This is a measure used to see an extent of agreement of disagreement beween to persons in
assessing the quantitative characteristics(expressed interms of ranks)
• It is easy to compute compared to KPCC.
Spearman’s Rank Correlation Coefficient ( with tie )
∑(𝑡3 −𝑡)
6 {∑ 𝑑2 + }
𝒓𝒓 =1 – [ 12
]
𝑛3 −𝑛

Where,
∑ 𝑑2 is sum of the squares of rank differences

𝑖. 𝑒, 𝑑 2 = ( 𝑥𝑅 - 𝑦𝑅 )2
t is tie length
n is number of observations
Spearman’s Rank Correlation Coefficient ( without tie)
6 ∑ 𝑑2
𝒓𝒓 =1 – ( 𝑛3 −𝑛 )

Example1:
Marks scored by 5 students in Accounts and statistics is as shown below. Find the rank correlation
coefficient
Marks in Acc : 55 65 75 65 80
Marks in Stats: 70 75 75 80 75

Example2:
If the sum of the squares of rank differences for 5 observations is 20 , then find the rank correlation
coefficient
Given
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∑ 𝑑2 = 20 and n=5
6 ∑ 𝑑2
𝒓𝒓 =1 – ( 𝑛3 −𝑛 ) = 1-(120/120 )

𝒓𝒓 =0

Some important notes on Spearman’s rank Correlation Coefficient

• 𝒓𝒓 = -1 when the ranks are in reverse order
• The association between the two variables need not be linear.
• The sum of the rank differences will be always zero
Coefficient of Concurrent deviation:
When we are not concerned about the magnitude of the two variables, then Coefficient of
concurrent deviation is the simplest measure of correlation
We assign a positive sign if the value is increasing from the previous value , negative sign is
assigned if the value is decreasing from the previous and we assign = sign if there is no
change from previous value
If the of signs of deviations for x and y are similar, then it is said to be a concurrent deviation

𝟐𝒄−𝒎
𝒓𝒄𝒅 = ± √±( )
𝒎

Where,
c is number of concurrent deviations
m is number of pairs of deviation
m = n-1
n is number of pairs of observations
Note: If 2c-m is positive then the signs are taken positive otherwise negative.
Example1:
Find the coefficient of concurrent deviations for the data given
Year : 2015 2016 2017 2018 2019 2020
Demand: 60 65 55 60 70 65
Supply : 50 55 50 50 60 60

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Example2:
The number of concurrent deviations for the 10 pairs of observations is 4. Find the coefficient of
concurrent deviation
Given n=10
m=9
C=4
2c-m = -1

𝟐𝒄−𝒎
𝒓𝒄𝒅 = - √-( )
𝒎

= -1/3
Probable Error (PE)
• It is used to determine the limits of correlation coefficient
• The limits are given by l = r ± PE
( 1- 𝑟 2 )
• PE = 0.6745
√𝒏

Where n is number of observations

• PE is never negative
• If r is less than the probable error then there is no evidence of correlation
Standard Error ( SE)
• SE = 1.5 PE

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 ( 1- 𝑟 2 )
=
√𝒏

Significant value of r
The value of r is said to be significant if r > 6 PE
Coefficient of determination:
It describes the amount of explained variation and it is the square of correlation coefficient
(𝑟 2 )
Coefficient of non determination:
It describes the amount of un explained variation and it is the given by (1-𝑟 2 )

Regression Analysis
This provides a linear relation between two variables ( obtained by method of least squares) using
which one can estimate the probable value of a variable given the value of another variable
Regression line of y on x
Note: To be used when the probable value of y is to be determined, given the value of x
y = a+ 𝒃𝒚𝒙 .x

(This equation is comparable with equation of a straight line in y intercept form i.e y = mx+C ,
where m is the slope and C is the y intercept)
Where,
𝑏𝑦𝑥 is the regression coefficient of y on x and it is given by
𝑠𝑦
𝑏𝑦𝑥 = r. 𝑠
𝑥

𝒏 ∑ 𝒙𝒚 − ∑ 𝒙 ∑ 𝒚
= 𝟐
𝒏 ∑ 𝒙𝟐 − (∑ 𝒙)

Note: slope of x axis or slope of any line parallel to x axis is 0.

Regression line of x on y
Note: To be used when the probable value of x is to be determined, given the value of y
x = a+ 𝒃𝒙𝒚 .y

𝑏𝑥𝑦 is the regression coefficient of x on y and it is given by

𝑠
𝑏𝑥𝑦 = r. 𝑠𝑥
𝑦

𝒏 ∑ 𝒙𝒚 − ∑ 𝒙 ∑ 𝒚
= 𝟐
𝒏 ∑ 𝒚𝟐 − (∑ 𝒚)
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Properties of regression coefficients
• Regression coefficient remain unaltered on shift of origin but do change with change of
scale
𝑥−𝑎 𝑦−𝑐
If u = & v=
𝑏 𝑑
𝑑
Then 𝑏𝑢𝑣 = 𝑏 𝑏𝑥𝑦

To find Regression line of y on x when 𝒃𝒙𝒚 , 𝒃𝒚𝒙 , ̅𝒙 𝐚𝐧𝐝 ̅𝒚 are given

(y- ̅𝑦) = 𝑏𝑦𝑥 (x- ̅𝑥)

Relationship between regression coefficients and correlation coefficient

• Correlation coefficient is the GM of regression coefficients

• r = ± √𝑏𝑥𝑦 . 𝑏𝑦𝑥

Note: r is +ve when both 𝑏𝑥𝑦 & 𝑏𝑦𝑥 are +ve

r is –ve when both 𝑏𝑥𝑦 & 𝑏𝑦𝑥 are -ve

To find r when regression lines are given

Procedure:
• We shall assume one of the regression line as y on x and another line as x on y
• Proceed on to find 𝑏𝑥𝑦 & 𝑏𝑦𝑥 on comparing with y = a+𝑏𝑦𝑥 .x and x = a+𝑏𝑥𝑦 .y

• Then find r using the relation r = ± √𝑏𝑥𝑦 . 𝑏𝑦𝑥

• If the value of r is within the range then the assumptions are correct the value so obtained for r
is correct. Otherwise we shall reverse the assumptions, in that case 𝑏𝑦𝑥 = 1/𝑏𝑥𝑦 𝑎nd 𝑏𝑥𝑦 =
1/𝑏𝑦𝑥 .

Point of intersection of Regression lines

̅̅̅̅)
The point of intersection of regression lines gives the mean values of x and y i.e ( ̅𝑥 , 𝑦
Value of r based on the angle between regression lines:
• r = 0 if the regression lines are at right angles ( angle= 90 degrees)
• r= ± 1 if the regression lines are coincident or identical

Example1:
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If the equation of the two regression lines are 2x -3y =0 and 4y – 5x= 8 then the correlation coefficient
between x and y is equal to

15 8 6
a)√ 8 b) )√15 c) )√15 d) none of these

Example2:
The regression lines are 3x+2y=26, 6x+y =31. Find the regression line of x on y
Solution: r= - 0.5
Example3:
If the two lines of regression are x +2y – 5 = 0 and 2x+3y –8=0, then the regression line of y on x is
(a) x +2y – 5 = 0 (b) x +2y = 0
(c) 2x + 3y – 8 = 0 (d) 2x + 3y = 0
Solution:
Assuming first equation as y on x and 2nd equation as x on y
r= -0.75 (within the range)
Therefore assumptions are correct..
Therefore regression line of y on x is x +2y – 5 = 0

Practice questions:
1. The coefficient of correlation r between x and y when: Cov(x,y) = -16.5, Var(x) =2.89 and
Var(y) = 100 is

316 | P a g e
 a) -0.97 b) 0.97 c) 0.89 d) -0.89

2. Take 200 and 150 respectively as the assumed mean for x and y series of 11 values , then
dx = x-200, dy = y-150 , ∑ 𝑑𝑥 = 13 , ∑ 𝑑𝑥 2 = 2667 , ∑ 𝑑𝑦 2 = 6964 , ∑ 𝑑𝑦 = 42 ,
∑ 𝑑𝑥𝑑𝑦 = 3943 . The value of r is
a) 0.77 b)0.98 c) 0.92 d) 0.82
3. For some bivariate data, the following results were obtained for the two variables x and y:
𝑥̅ = 53.2 , 𝑦̅ = 27.9 , byx= -1.5 , bxy= -0.2
The most probable value of y when x= :
a) 0.267 b) 0.867 c) 0.92 d)none
4. Two random variables have the regression lines 3x+2y=26 and 6x+y =31. The coefficient of
correlataion between x and y is:
a) -0.25 b) 0.5 c) -0.5 d) 0.25
5. The coefficient of correlation between x and y is 0.6. U and V arwe two variables defined as
𝑥−3 𝑦−2
U= ,V= , then the coefficient of correlation between U and V is :
2 3
a) 0.6 b) 0.4 c) 0.8 d)1
6. For the following data , the coefficient of rank correlation is:
Rank in Botany : 1 2 3 4 5
Rank in Chemistry : 2 3 1 5 4
a) 0.93 b) 0.4 c) 0.6 d) none
7. The following data is given based on 450 students for marks in statistics and Economics at
certain examination:
Mean marks in statistics = 40
Mean marks in Economics = 48
S.D of Statistics Marks = 12
Variance of Economics Marks = 256
Sum of the product of deviations of marks
From their respective mean = 42075
The average marks in Economics of candidates who obtained 50 marks in statistics is:
a) 45 b) 54.5 c)54 d)47.5
8. If the covariance between two variables is 20 and the variance of one of the variables is 16,
what would be the variance of the other variable?
a) More than 10 b) more than 100 c) more than 1.25 d) less than 10
9. Assume 69 and 112 as the mean values for X and Y respectively.
dx = x-69, dy = y-112 , ∑ 𝑑𝑥 = 47 , ∑ 𝑑𝑥 2 = 1475 , ∑ 𝑑𝑦 2 = 3468 , ∑ 𝑑𝑦 = 108,
∑ 𝑑𝑥𝑑𝑦 = 2116. then the value of r is
a)0.95 b) 0.65 c) 0.75 d) 0.85
10. In rank correlation, the association need not not be linear
a) True b) False c) partly True d) partly false
11. The lines of Regression are as follows:
5x-145= -10y : 14y – 208 = -8x .
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 The mean values (𝑥̅ , 𝑦̅ )
a) (12,5) b) (5, 7) c) (7, 12) d) (5, 12)
12. The coefficient of rank correlation of marks obtained by 10 students, in English and Economics
was found to be 0.5. it was later discovered that the ranks in the two subjects obtained by one
student was wrongly taken as 3 instead of 7. The correct coefficient of rank correlation is:
a) 0.32 b) 0.26 c) 0.49 d)0.93
13. If the correlation coefficient between two variables is 1. Then the two lines of regression are:
a) Anti Parallel b) At right angles c) Identical d) none of these
14. Given byx= 1.6 and bxy= 0.4 . the coefficient of determination is
a) 0.74 b) 0.42 c) 0.58 d) 0.64
15. Then method applied for deriving regression equations is known as:
a) Concurrent deviations b) product moment c) least squares d) normal equation
16. If the sum of squares of differences of rank is 50 and number of items is 8 then what is the
value of rank correlation coefficient.
a) 0.59 b) 0.4 c) 0.36 d)0.63
17. If coefficient of correlation between x and y is 0.46. find coefficient of correlation between x and
y/2
a) 0.46 b) 0.92 c) -0.46 d) -0.92
18. Given regression equations as 3x + y = 13 and 2x+ 5y = 20. Find regression equation of y
on x.
a) 3x + y = 13 b) 2x + y = 20 c) 3x + 5y = 13 d) 2x +5y = 20
19. The correlation coefficient between x and y is -1/2. The value of bxy= -1/8. Find byx
a) -2 b) -4 c) 0 d) 2
20. If the ranks given by 2 judges are in reverse order then the value of spearman rank correlation
coefficient is
a) -1 b) 0 c) 1 d) 0.75
21. If the rank correlation coefficient between marks in Management and Mathematics for a group
of students 0.6 and the sum of the squares of the difference in ranks is 66. Then what is the
number of students in the group?
a) 9 b) 10 c) 11 d)12
22. Correlation coefficient between x and y will be negative when
a) X and y are decreasing b) x is increasing, y is decreasing
c)X and y are increasing d) none of these

Chapter 18-Index numbers

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 It is a statistical tool that helps in Comparing price/quantity/value of a Commodity in 2 different time
periods (Base year and current year)
→ Index numbers are expressed interms of percentages.
→ Averages used for the Construction of Index numbers, are AM & GM
→ GM is the best average for construction of Index numbers.
Cassification of Index numbers
Simple Index number,
Simple aggregative price Index :
∑ 𝑃1
=∑ x 100
𝑃0
Where P₁→ Current year Price
P0 → Base year price
Simple Relative price Index
𝑃
∑( 1 )
𝑃0
= x 100
𝑁
where, N → no. of Commodities.
Note:
SAPI is unit dependent where as SRPI is unit independent.
Example:
Find (i) Simple aggregative & (ii) Simple relative price Index for the data
Given

Commodity Base Year Price Current year Price

Rice (Per kg) 75 95

Dal (Per Kg) 100 120

Sun flower oil (per Litre) 120 150

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weighted Index numbers..
→ Here weight means quantity
Types of weighted Index numbers
Laspeyre's Index (L)
∑(𝑃1 𝑞0)
L = ∑(𝑃 x 100
0 𝑞0)

where,
𝑞0 is base year quantity
Paasche's Index (P)
∑(𝑃1 𝑞1)
P = ∑(𝑃 x 100
0 𝑞1)

where q₁ → Current year quantity.

Note: If the prices or quantities change in the same ratio, then the laspeyre’s index will be
equal to Pasche’s index.
Bowley's Index (B)
→ It is an AM of Laspeyre's & paasche's Index.
L+P
B= 2

Fisher's Index (F)

→ It is a GM of Laspeyre's and Paasche's Index.

→ F = √LxP
∑𝑃 𝑞 ∑ 𝑃1 𝑞1
F = √∑ 𝑃1 𝑞0 𝑥 ∑ 𝑃0 𝑞1
x 100
0 0

→ Fisher's Index is an Ideal Index number.

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Marshall's Index (M)
∑ 𝑃1 (𝑞0 + 𝑞1 )
M= ∑ 𝑃0 (𝑞0 + 𝑞1 )
x100

→ Marshall's Index is a good approximation to Fisher's Index.

Examples:
Find Marshall's & Fisher's Index for the data given

Commodity P0 q0 P1 q1

A 3 7 3 8

B 6 12 4 14

C 8 10 6 11

Consumer Price Index (CPI)

-> It is also referred as Cost of living Index
-> The CPI is a measure of average change in price over a given period of time the Consumer pays
for the basket of goods and services.
→ The CPI helps in finding the rate of Inflation.
∑ 𝐼𝑤
→ CPI = ∑𝑤

where I → group index

w → weight.
Deflated value:
→ Deflation of value occurs when retailers & Service providers Cut their costs & sell smaller
packages, give out smaller portions or generally provide less for the same Price so as to maintain the
same sticker price.

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 current value
Deflated value = current year CPI

Splicing of Index numbers

→ It means the construction of One Continuous series from two different index number series on the
basis of Common base.
→It is to be used when a new commodity is to be added to the existing list of commodities.
Shifted Price Index
original Price Index
Shifted price Index = x 100
Price Index of the year to which it has to be shifled

Chain Index number (CIN)

A chain Index is an Index number in which the value of any given period is related to the value of
immediate preceding period.
This in different from the fixed- base Index.
Link Relative of current year x CIN of Previous year
CIN = 100

Here, link relative is the price relative.

Purchasing power of Money :-
→ It is the reciprocal of price index number
1
Purchasing power of money = Price Index number

→ Lesser the price index number, greater will be the purchasing Power of money.
Real wages
current year wages
= x Base year CPI
Current year CPI

- It is the wages in comparison with base year wage

Percentage increase in Real wages
I+ % Increase in Price
= [1 − (1+% increase in wages)] x100

Where,
% Increase in price is rate of inflation
Examples:
the CPI goes up from 100 to 250 & the wages of a worker also raised from
10,000 to 30,000.
Find the real wages.

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Example:
If with an increase of 10% in price, the rise in wages is 20% then the Real wages has increased by
(a) 20 % b) 10% c) less than 10% d) more than 10%

Note:
%. Increase in real wages will be always Less than the difference b/w % increase in wages & %
increase in price.
Tests of Adequacy (Tests of consistency)
1. Unit test
For Index no. to pass unit test, it must be independent of unit.
→ only simple aggregative Price Index doesn't satisfy unit test as it is not Independent it is units.
2). Time reversal test (TRT)
,Condition for satisfying TRT
P01 x P10 = 1
P01 represents 1 on 0
Where as P10 represents 0 on 1
Fisher’s index and Marshall’s index satisfy
3) Factor Reversal Test (FRT)
→ Condition for satisfying factor reversal test is

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 ∑ 𝑃1 𝑞1
P01 × q01 = V01 = ∑ 𝑃0 𝑞0

Where
Vo1, value index of 1 on 0
→ only Fisher's Index Satisfies FRT.
4) circular Test
→ Condition for satisfying circular test is P01 x P₁₂ x P20 = 1
→ Fisher's Index fails to satisfy Circular test
→ It is satisfied by Simple GM of price relatives & weighted aggregative with fixed weights
→Circular test is an extension of TRT
To find the current year salary and Dearness allowance(DA) when Base year salary, Base year
CPI and Current year CPI are given.
Note: If base year CPI is not given, then it is taken as 100
𝐵𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑎𝑟𝑦 x 𝐶𝑢𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝐶𝑃𝐼
Current year salary: 𝐵𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 𝐶𝑃𝐼

→ Dearness allowance= Current year salary – Base year salary

To find the current year CPI when Percentage increase/ decrease in price is given
Example:Index number of prices in the year 2008 is 225. With 2004 as the base year , What is the
percentage change in price from base period?

Example1:
Suppose a business executive was earning ₹. 2,050 in the base period, what should be his salary in
the current period if his standard of living is to remain the same? Given∑ 𝐼𝑊 = 3544 ∑ 𝑊 = 25
a) ₹. 2096 b) ₹. 2906 c) ₹. 2106 d) ₹. 2306

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Example2:
The monthly income of an employee was Rs.8000 in 2014. The consumer price index number was
160 in 2014, which rose to 200 in 2017. If he has to be rightly compensated, the additional dearness
allowance to be paid to him in 2017 would be:
a) Rs.2400 b) Rs.2750 c)Rs.2500 d) none of these

Example3:
If the prices of all commodities in a place has increased 20% in comparison to the base period
prices, then the index number of prices for the place is now….
a) 100 b) 120 c) 20 d) 150

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Practice questions:
1. Chain index is equal to
(a) like relative of current year × chain index of the current year
100
(b) link relative of previous year × chain index of the current year
100
(c) link relative of current year × chain index of the previous year
100
(d) link relative of previous year × chain index of the previous year
100

2. The test of shifting the base is called

(a) Unit Test. (b) Time Reversal Test. (c) Circular Test. (d) None of these.

3. An index time series is a list of _______ numbers for two or more periods of time.
(a) Index (b) Absolute (c) Relative (d) Sample

4. P01 is the index for time

(a) 1 on 0 (b) 0 on 1 (c) 1 on 1 (d) 0 on 0

5. The index number of prices at a place in 1998 is 355 with 1991 as base. This means
(a) There has been on the average a 255% increase in prices
(b) There has been on the average a 355% increase in price
(c) There has been on the average a 250% increase in price
(d) None of these

6. If the price of all commodities in a place has increased by 1.25 times in comparison to the base
period prices, then the index number of prices for the place is now
(a) 100 (b) 125 (c) 225 (d) None of the
above.

7. If now the prices of all the commodities in a place have been decreased by 85% over the base
period prices, then the index number of prices for the place is now (index number of prices of base
period = 100)
(a) 100 (b) 135 (c) 65 (d) None of these

8. Simple Aggregative Method is used for computing a:

(a) Relative index. (b) Price index. (c) Value index. (d) None of these.

9. The ______ is satisfied when Pab × Pbc × Pca = 1

(a) Time reversal test (b) Factor reversal test (c) Circular test (d)
Unit test

10. ______ is an extension of time reversal test.

(a) Factor reversal test (b) Circular test (c) Unit test (d) None of these

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11. Time reversal test is satisfied when
(a) P01 x P10 = 0 (b) P01 x P10 = 1
(c) P01 x P10 < 1 (d)P01 x P10 > 1

12. The total sum of the values of a given year divided by the sum of the values of the base year is
(a) Price index. (b) Quantity index. (c) Value index. (d) None of these.

13. Fisher’s ideal index is

(a) Arithmetic mean of Laspeyre’s and Paasche’s index.
(b) Median of Laspeyre’s and Paasche’s index.
(c) Geometric mean of Laspeyre’s and Paasche’s index.
(d) None of these.

14. Factor reversal test is satisfied by

(a) Laspeyre’s index. (b) Paasche’s index.
(c) Fisher’s ideal index. (d) None of these.

15. Laspeyre’s index is based on

(a) Base year quantities. (b) Current year quantities.
(c) Average of current year and base year. (d) None of these.
16. Laspeyre’s and Pasche’s method satisfy time reversal test
(a) True (b) False (c) Both (d) None of these

17. The index number is a special type of G.M.

(a) True (b) False (c) Both (d) None of these

18. The number of test of adequacy is ___________

(a) 2 (b) 5 (c) 3 (d) 4

19. Theoretically, A.M. is the best average in the construction of index nos. but in practice, mostly the
G.M. is used:
(a) False (b) True (c) Both (d) None of these

20.P10 is the index for time

(a) 1 on 0 (b) 0 on 1 (c) 1 on 1 (d) 0 on 0

21. The index number is not a special type of average

(a) False (b) True (c) Both (d) None of these

22. Fisher’s ideal idex no. is equal to

(a) Laspeyse’s index × Pasche’s Index (b√𝐿𝑎𝑠𝑝𝑒𝑦𝑠𝑒’𝑠 𝑖𝑛𝑑𝑒𝑥 × 𝑃𝑎𝑠𝑐ℎ𝑒’𝑠 𝐼𝑛𝑑𝑒𝑥
(c)(L+P)/2 (d) None of these

23. Fisher’s Ideal formula does not satisfy_________ test

(a) Circular test (b) Unit test (c) Time Reversal test (d) None of these
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24. The price level of a country in a certain year has increased by 20% over the base period. The
Index number for that year is _____________
(a) 20 (b) 120 (c) 220 (d) None of these

25. In a circular test the _____________condition must be satisfied?

(a) P01 x P12 x P20 = 1 (b) P02 x P10 x P20 = 1 (c) P10 x P20 x P21 = 1 (d) None of these

26. For factor reversal test:P01 × Q01 = V01 = True Value Ratio (T.V.R.) This is
(a) False (b) True (c) Both (a) & (b) (d) None of these

27. During a certain period, the cost of living index number goes up from 110 to 200 and the salary of
the worker is also raised from Rs. 3,250 to Rs. 5,000. Does the worker really gain?
(a) No (b) Yes (c) Cannot determine (d) None of these

28. During a certain period, the cost of living index number goes up from 110 to 200 and the salary of
the worker is also raised from Rs. 3,250 to Rs. 5,000. What should be his salary in real terms?
(a) Rs. 5,800 (b) Rs. 5,909 (c) Rs. 5,900 (d) None of these

29. When the prices or quantities of all the goods are changing in the same ratio then the
Laspeyre’s and Paasche’s Index Number will be
(a) Equal (b) Unequal (c) Either (a) or (b) (d) None of these

30. Between 1990 and 2000, the price of a commodity increased by 60% while the production
decreased by 30%. By what percentage did the value index of production of commodity change in
2000 with respect to its value 1990.
(a) 10% (b) 15% (c) 12% (d) None of these

31. The consumer price index over a certain period increased from 120 to 215 and the wages of
worker increased from Rs. 1,680 to Rs. 3000. What is the loss of the worker?
(a) 5.58 (b) 6.58 (c) 7.58 (d) None of these

32. The consumer price index for a group of workers was 250 in 1994 with 1980 as the base.
Compute the purchasing power of a rupee in 1994 Compared to 1980.
(a) 0.40 (b) 0.50 (c) 0.60 (d) None of these

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