Monday 24 November 2014

Sample Questions of Commerce Olympiad

Accountancy
1. Various steps of accounting process are
(i) Recording,
(ii) Summarizing,
(iii) Identifying the financial transaction
(iv) Classifying
(v) Communicating
Identify from the following, which is the correct order of above steps
(a) (i), (ii), (iii), (iv), (v)
 (b) (i), (iii), (iv), (ii), (v)
(c) (iii), (i), (iv), (ii), (v)
(d) (iii), (i), (iv), (v), (ii)

2. Which of the following qualitative features of accounting is reflected, when accounting policies and
conventions are followed consistently ?
(a) Reliability
(b) Understandability
(c) Relevance
(d) Comparability

3. Window dressing in accounting refers to-
(a) Showing more or less profit than true and fair profit
(b) Showing more profit than true profit
(c) Showing less profit than true profit
(d) Disclosure of information about accounting policies

4. Capital is the –
(a) Excess of external liabilities over the assets
(b) Excess of assets over the external liabilities
(c) Excess of external liabilities over fixed assets
(d) Excess of assets over internal liabilities

5. The term “purchase” is used only for purchase of _______________and is never used for the purchase of
______________
(a) Assets, Investment
(b) Assets, Goods
(c) Intangible assets, Goods
(d) Goods, Non current assets

6. Cash discount is allowed at the time of ________
(a) Receiving early payment of due amount
(b) Sale of goods in bulk quantity
(c) Both at the time of sale of goods and receiving the payment
(d) Making payment for purchase of goods

7. Which accounting principle is followed when a firm makes provision for doubtful debts on debtors ?
(a) Consistency
(b) Materiality
(c) Going concern
(d) Prudence

8. All the following items are classified as fundamental accounting assumptions EXCEPT –
(a) Consistency
(b) Business entity
(c) Going concern
 (d) Accrual

9. Mr. Harish purchased a motorcycle for his son on credit and recorded it as purchase of asset in the business books. He has violated –
(a) Money measurement principle
(b) Periodicity
(c) Consistency
 (d) Accounting entity principle

10. Name the principle which treats all rupees alike whether it is rupee of year 1972 or 2012 –
(a) Money measurement principle
 (b) Periodicity principle
(c) Consistency principle
 (d) Accounting Entity

11. The adjustments for outstanding expenses, prepaid expenses, accrued income and unearned income are
made as per which of the following accounting principle ?
(a) Entity
(b) Periodicity
(c) Matching
(d) Conservatism

12. “IFRS” stands for
(a) Indian Financial Reporting System
(b) International Financial Reporting Standards
(c) Internal Financial Recording System
(d) International Financial Reporting System

13. Which of the following is the source voucher/document ?
(a) Debit voucher
(b) Credit voucher
(c) Transfer voucher
 (d) Invoice

14. In Accounting equation outstanding rent is an example of –
(a) Increase in Assets and decrease in Capital
(b) Increase in Liability and decrease in Capital
(c) Decrease in Liability and Capital
(d) Increase in Assets and Capital

15. Credit means-
(a) Increase in Assets
(b) Increase in Liability
(c) Decrease in Liability
(d) Decrease in Capital

16. Which of the following is the odd one out with reference to the nature of accounts ?
(a) Interest A/c
 (b) Outstanding Interest A/c
(c) Advance Interest A/c
(d) Accrued Interest A/c

17. While passing an entry for purchase of goods of the list price of ` 10,000 from Mr. Vikas who allowed 10%
trade discount and 5% cash discount. ___________A/c will be debited with ______________
(a) Purchases, ` 10,000
 (b) Purchases, ` 8,500
(c) Vikas, ` 8,550
(d) Purchases, ` 8,550

18. The debit balance of a personal account is __
(a) Cash in hand
(b) Amount receivable
(c) Income earned
(d) Amount payable

19. Which of the following accounts are normally balanced __
(a) Personal and Nominal accounts
 (b) Real and Nominal accounts
(c) Personal and Real accounts
(d) Personal, Real and Nominal accounts

20. Which document is sent to a customer when he returns the goods, which were sold to him on credit ?
(a) Credit Note
 (b) Cheque
(c) Debit Note
 (d) Return Invoice
21. Furniture used by a Furniture dealer for furnishing his office will be credited to___
(a) Furniture A/c
(b) Cash A/c
(c) Sales A/c
(d) Purchases A/c

22. Which of the following transactions will result in lower balance in the bank column of Cash Book in
comparison to Pass Book ?
(a) Interest credited by Bank, not recorded in Cash Book
(b) Bank charges not recorded in Cash Book
(c) Cheques sent to bank, but not yet credited
(d) Cheques paid into bank, and duly collected

23. Overdraft as per Pass Book is ` 10,000, Cheques deposited but not credited ` 2,500. What will be the balance as per Cash Book ?
(a) Overdraft ` 7,500
 (b) Favourable Balance ` 7,500
(c) Favourable Balance `12,500
(d) Overdraft ` 2,500

24. A cheque issued for ` 108 was recorded twice in the Cash Book. When the balance as per Cash Book is
taken as base, while preparing the Bank Reconciliation Statement __
(a) ` 108 will be substracted
 (b) ` 216 will be added
(c) ` 216 will be substracted
 (d) ` 108 will be added

25. The Trial Balance checks
(a) Honesty of Book keeper
 (b) Systematic recording of transactions
(c) Arithmetical accuracy of books
(d) Frauds of Accountant

26. Purchase of computer for office worth ` 24,000 has been debited to office expenses A/c. Which type of
error is this ?
(a) Clerical error
(b) Error of Principle
(c) Error of Omission
(d) Error of Commission

27. Which of the following errors will not affect the Trial Balance ?
(a) Wrong carry forward balance of an account
(b) Wrong totalling of an account
(c) Omission of an account from the Trial Balance
(d) Posting in wrong account on correct side

28. Purchased goods from Kavish for ` 4,800 but was recorded to the debit of Kavish as ` 8,400. In the rectifying entry, Kavish's A/c will be ________
(a) Credited with ` 13,200
 (b) Debited with ` 3,600
(c) Credited with ` 4,800
(d) Debited with ` 13,200

29. In which of the following errors, Suspense account will be opened in rectifying entry ?
(a) Goods worth ` 4,800 withdrawn by proprietor omitted to be recorded
(b) Goods returned by Naresh` 480 was recorded in sales book
(c) Ramesh who owed us ` 400 has been credited with ` 4,000
(d) Sales of ` 1,296 to Rohitwas entered in the sales book as ` 1,269

30. Which of the following is NOT an error of commission ?
(a) A sale of ` 1,080 not recorded in books at all
(b) Instead of crediting Nidhi, Vidhi is credited
(c) Rent paid to landlord was posted to Landlord's A/c
(d) A purchase of ` 480 was wrongly posted to sales A/c

Attempt ANY ONE Section out of Section A and Section B
Section - A
(From Q. No. 31 to 40)
31. Depreciation is provided on___
(a) Current Assets
(b) Intangible Assets
(c) Tangible Fixed Assets
(d) Fictitious Assets

32. Which of the following is not the cause of depreciation ?
(a) Physical wear and tear
(b) Expiry of period
(c) Expiry of legal rights
 (d) Theft of an asset
33. A machine was purchased on 1 April, 2011 for ` 5,00,000 and on 1 October, 2011 a new machine is added for ` 2,00,000. Calculate the balance of machine account, on March 31, 2012 if depreciation is charged @ 20% p.a on Written Down Value.
(a) ` 6,00,000
 (b) ` 5,60,000
(c) ` 6,60,000
(d) ` 5,80,000

34. X Ltd. Purchased a machine on 1.1.2012 for ` 2,40,000. Installation expenses were ` 20,000. Residual value of machinery after 5 years ` 10,000. On 1.7.2012, repair expense was incurred to the extent of ` 4,000. Depreciation is provided @20% by Straight Line Method. Find out the amount of depreciation for
the fourth year.
(a) ` 50,000
(b) ` 34,000
(c) ` 42 ,000
 (d) ` 50,800

35. Which of the following statements are correct about “Provisions’
i. Provision is a charge against profit of an enterprise
ii. Provision is created out of profit
iii. Creation of provision is necessary for a business
iv. Provision is created to meet a known liability
(a) i,ii and iii
(b) ii and iv only
(c) i,iii and iv
 (d) i and iv only

36. Who pays the noting charges initially, when an endorsed bill is dishonoured ?
(a) Drawer
(b) Drawee
(c) Endorser
(d) Endorsee

37. What will be the due date, If a bill is drawn on 13 July, 2012 for 30 days ?
(a) 15 August, 2012
 (b) 14 August, 2012
(c) 17 August, 2012
 (d) 16 August, 2012

38. On 1.1.2012 X draws a bill on Y for ` 1,50,000 for 3 months. X got the bill discounted on 4.2.2012 @ 12%
p.a. What will be the amount of discount ?
(a) ` 3,000
(b) ` 6,000
(c) ` 18,000
(d) ` 4,500

39. On 1.6. 2007 X draws a bill on Y for ` 25,000. At maturity Y requests X to accept ` 5,100 in cash (including
noting charges ` 100). For the balance X draws a bill on Y for two months at 12% p.a. What will be the
amount of interest.
(a) ` 410
 (b) ` 420
(c) ` 440
(d) ` 400

40. A bill of ` 1,50,000 was discounted by A with his banker of ` 1,45,500. At maturity the bill returned
dishonored, the noting charges being ` 200. How much amount will the banker deduct from A's bank
balance at the time of such dishonor ?
(a) ` 1,45,500
(b) ` 1,45,700
(c) ` 1,50,200
(d) ` 1,50,000
Section-B
(From Q. No. 41 to 50)
41. Huge expenses incurred on advertising campaign for a soft drink is which type of expenditure ?
(a) Revenue Expenditure
 (b) Capital Expenditure
(c) Deferred Revenue Expenditure
 (d) Prepaid Expenditure

42.. Life Insurance premium paid by a proprietor ` 3,000 appearing in the Trial Balance will be-
(a) Debited to Profit and Loss A/c
(b) Credited to Profit and Loss A/c
(c) To be shown in Dr. of P&L A/c and deducted from capital
(d) Deducted from capital

43. Profit and Loss A/c of a business shows its.
(a) Financial performance at a particular date
(b) Financial performance for an accounting period
(c) Financial position at a particular date
(d) Financial position for an accounting period

44. Kriti's Trial balance as at 31 December 2012 contains the following information : 12% Bank loan ` 40,000,
Interest paid ` 3,800. How much amount of interest will be debited to Profit and Loss A/c
(a) ` 4,800
(b) ` 5,000
(c) ` 1,000
(d) ` 3,800

45. Closing stock appearing in Trial Balance is shown_
(a) Only on the debit side of Trading A/c
(b) Only on the credit side of Trading A/c
(c) Only on the Asset side of Balance Sheet
(d) On Credit side of Trading A/c and Asset side in Balance Sheet

46. Trial balance as on 31 December, 2012 shows Debtors ` 5,00,000, Bad Debts ` 15,000 and Provision for
Doubtful Debts ` 1,00,000
Additional Information:
(i)                  Further Bad Debts are ` 25,000
(ii)                (ii) Maintain provision@ 10% on debtors
By what amount will the P&L A/c be debited ?
(a) ` 87,500
(b) ` 1,00,000
(c) ` 47,500
(d) None of the above

47. From the following calculate total sales of XYZ Ltd.
Opening Stock :` 50,000, Purchases : ` 1,00,000, Manufacturing Expenses : ` 30,000., Net Profit is `
25,000, Gross Profit on sales is 20%
(a) ` 45,000
(b) ` 2,25,000
(c) ` 2,40,000
(d) ` 2,00,000

48. Under the liquidity approach of marshalling of Assets and Liabilities
(a) The most liquid assets are presented at the bottom of Balance Sheet
(b) The least urgent payment are presented at the top of the Balance Sheet
(c) The least urgent payment are presented at the bottom of the Balance Sheet
(d) The least liquid assets are presented at the bottom of the Balance Sheet

49. Select the odd one:
(a) Goodwill
(b) Trade Debtors
(c) Outstanding Telephone Bills
 (d) Rent Receivable

50. Which of the following would not be transferred to Profit and Loss A/c, while preparing Final Accounts ?
(a) Accumulated Depreciation
 (b) Bad Debts
(c) Discount Allowed

 (d) Bad Debts recovered

Class XI Economics( statistics) notes

STATISTICS FOR ECONOMICS
Unit I
Chapter 1: INTRODUCTION
IMPORTANT CONCEPTS:
1. Meaning of Statistics in plural sense – It is a collection of numerical facts.
2. Meaning of Statistics in Plural Sense – It deals with the collection, presentation, analysis
and interpretation of quantitative information.
3. Definition of statistics in Plural Sense – It means aggregate of facts affected to a marked
extent of multiplicity of causes numerically expressed, enumerated or estimated according
to reasonable standard of accuracy, collected in a systematic manner for predetermined
purpose and placed in relation to each other.
4. Consumer – A person who buys goods and services for the satisfaction of human wants.
5. Producer – A person who produces goods.
6. Service holder – A person who is working or in a job and gets paid for it.
7. Service Provider – A person who gives services to others for a payment.
8. Economic activity – Activities undertaken for monetary gain or to earn income.
9. Economics is divided into three parts:
a] Consumption b] Production c] Distribution
10. Consumption: In consumption, we study wants, their origin, nature and characteristics and
the laws governing them.
11. Production: It refers to all activities which are undertaken to produce goods and services
for generation of income and satisfaction of wants.
12. Distribution: Economic activity which studies how income generated from the production
process is distributed among the factors of production.
13. Data: Economic facts in terms of numbers.
14. Importance of Statistics:
Statistics is widely used in many fields.
a] Importance to the Government – Statistics is used in administration and efficient
functioning of departments. It collects data to fulfill its welfare objectives.
b] Importance of Statistics in Economics:
1] Statistics helps in making economic laws like law of demand and concept of
elasticity.
2] It helps in understanding and solving economic problem.
3] It helps in studying market structure.
4] It helps in finding mathematical relations between variables.
1 mark question:
1. Define statistics in plural form.
2. What is economic activity?
3. Who is a service provider?
4. Who is a consumer?
5. What is meant by production?
3 marks question (FAQ)
1. Define statistics in singular sense.
2. How is statistics important in Economics?
3. How is statistics important to the Government?

Chapter 2: COLLECTION OF DATA
Points to remember:
1. Collection of data is the first important aspect of statistical survey.
2. Data – Information which can be expressed in numbers.
3. Two sources of data – Primary & Secondary Primary data – data collected by investigator
himself , secondary data – data collected by someone and used by the investigator.
4. Difference between Primary and Secondary Data
a] Primary data is original data collected by the investigator while secondary data is
already existing and not original.
b] Primary data is always collected for a specific purpose while secondary data has
already been collected for some other purpose.
c] Primary is costlier or is more expensive whereas secondary data is less expensive.
5. Methods / Sources of Collection of Primary Data :
a] Direct Personal Interview – Data is personally collected by the interviewer.
b] Indirect Oral Investigation – Data is collected from third parties who have
information about subject of enquiry.
c] Information from correspondents – Data is collected from agents appointed in the
area of investigation.
d] Mailed questionnaire – Data is collected through questionnaire [list of questions]
mailed to the informant.
e] Questionnaire filled by enumerators – Data is collected by trained enumerators who
fill questionnaires.
f] Telephonic interviews – Data is collected through an interview over the telephone
with the interviewer.
Questionnaire – A list of questions with space for answers.
 Pilot Survey – Try-out of the questionnaire on a small group to find its short comings.
7. Qualities of a good questionnaire :
a] A covering letter with objectives and scope of survey.
b] Minimum number of questions.
c] Avoid personal questions.
d] Questions should be clear and simple.
e] Questions should be logically arranged.
8. Difference between census method and sampling method.
Census Method
1) Every unit of population studied
2) Reliable and accurate results
3) Expensive method
4) Suitable when population is of
homogenous nature.
Sampling Method
1)Few units of population are studied
2) Less Reliable and accurate results
3) Less expensive method
4) Suitable when population is of
heterogeneous nature
9. Personal Interview Method :
Advantages
1) Highest response rate
2) Allows all types of questions
3) Allows clearing doubts regarding
Questions.
Disadvantages
1) Most expensive
2) Informants can be influenced
3) Takes more time
Mailed Questionnaire Method:
Advantages
1) Least expensive
2) Only method to reach remote areas
3) Informants can be influenced
Disadvantages
Long response time
Cannot be used by illiterates.
Doubts cannot be cleared regarding
questions
Telephonic Interview Method:
Advantages
1) Relatively low cost
2) Relatively high response rate
3) Less influence on informants
Disadvantages
Limited use
Reactions cannot be watched
Respondents can be influenced
 Census Method – Data collected from each and every unit of population.
 Sample Method – Data is collected from few units of the population and result is applied
to the whole group.
Sources of Secondary Data:
1. Published Source – Government publications, Semi-government publications etc.
2. Unpublished Source – Census of India [They are collected by the organizations for their own
record]
Sampling Methods: 1] Random sampling 2] Non-random sampling
1. Random Sampling – It is a sampling method in which all the items have equal chance of
being selected and the individuals who are selected are just like the ones who are not
selected.
2. Non-random sampling – It is a sampling method in which all the items do not have an
equal chance of being selected and judgment of the investigator plays an important role.
Types of Statistical errors:
1] Sampling errors 2] Non-sampling errors
Sampling Error: It is the difference between sample value and actual value of a
characteristic of a population.
Non-sampling errors: Errors that accurate the stage of collecting data.
Types of non-sampling errors:
a] Errors of measurement due to incorrect response.
b] Errors of non-response of some units of the sample selected.
c] Sampling bias occurs when sample does not include some members of the target
population.
Census of India – It provides complete and continuous demographic record of population.
National Sample Survey Organization – It conducts national surveys on socio-economic
issues.
Sarvekshana – Quarterly journal published by NSSO.
1 mark question:
1. What are the main sources of data?
2. Which of the two types of data are collected for a definite purpose?
3. Which type of data involves less time and is less expensive?
4. Name 2 sources of errors in data collection.
5. Name 2 agencies at national level that deals with the collection, tabulation of statistical
data.
6. What is pilot survey?
7. Define sampling error.
8. Name 2 examples of secondary data.
9. Which method is used for estimation of population?
10. Name the journal published by NSSO.
3 mark questions:
1. Which of the following methods give better results and why ?
a] sample b] census
[Hint: depends on survey objective; census useful when population size is small]
2. Which of the following errors is more serious and why?
a] Sampling error b] Non sampling error
[Hint: Non sampling errors are more serious as sampling errors can be minimized by
taking a larger sample]
3. Distinguish between primary data and secondary data.
4 mark questions:
1. Which of the following methods gives better results and why?
a] Census b] Sample
2. Write four differences between census and sample methods.
3. What are the advantages of mailing questionnaire?
4. Distinguish between random and non random sampling.
6 mark questions:
1. Write 3 advantages and disadvantages each of indirect oral investigation.
2. Distinguish between:
a] Primary data and Secondary data
b] Census method and Sample method
3. Distinguish between primary data and secondary data. Which data is more reliable and
why?
4. What do you mean by questionnaire? State five principles which should be followed while
drafting a good questionnaire.
5. Discuss the method of collecting data through questionnaires filled by enumerators. Also
give its two merits and two demerits.

Chapter 3: Organization of Data
1. Classification of Data: The process of grouping data according to their characteristics is
known as classification of data.
2. Objectives of Classification:
a] To simplify complex data
b] To facilitate understanding
c] To facilitate comparison
d] To make analysis and interpretation easy.
e] To arrange and put the data according to their common characteristics.
3. Statistical Series: Systematic arrangement of statistical data
I. Can be on the basis of individual units :
The data can be individually presented in two forms:
i] Raw data: Data collected in original form.
ii] Individual Series: The arrangement of raw data individually. It can be expressed in
two ways.
a] Alphabetical arrangement : Alphabetical order
b] Array: Ascending or descending order.
II. Can be on the basis of Frequency Distribution:
Frequency distribution refers to a table in which observed values of a variable are
classified according to their numerical magnitude.
1. Discrete Series: A variable is called discrete if the variable can take only some
particular values.
2. Continuous Series: A variable is called continuous if it can take any value in a given
range. In constructing continuous series we come across terms like:
a] Class : Each given internal is called a class e.g., 0-5, 5-10.
b] Class limit: There are two limits upper limit and lower limit.
c] Class interval: Difference between upper limit and lower limit.
d] Range: Difference between upper limit and lower limit.
e] Mid-point or Mid Value: Upper limit - Lower limit/2
f] Frequency: Number of items [observations] falling within a particular class.
i] Exclusive Series: Excluding the upper limit of these classes, all the items of the class
are included in the class itself. E.g., :
Marks 0-10 10-20 20-30 30-40
Number of Students 2 5 2 1
ii] Inclusive Series: Upper class limits of classes are included in the respective classes.
E.g.,
Marks 0-9 10-19 20-29
Number of Students 2 5 2
Open End Classes : The lower limit of the first class and upper limit of the last class are
not given. E.g.,
Marks Below 20 20-30 30-40 40-50 50 and
above
Number of Students 7 6 12 5 3
iii] Cumulative Frequency Series: It is obtained by successively adding the frequencies
of the values of the classes according to a certain law.
a] ‘Less than’ Cumulative Frequency Distribution :
The frequencies of each class-internal are added successively.
b] ‘More than’ Cumulative Frequency Distribution:
The more than cumulative frequency is obtained by finding the cumulative totals of
frequencies starting from the highest value of the variable to the lowest value.
E.g., :
Marks                                           No. of students
0-10                                                    2
10-20                                                  5
20-30                                                 10
30-40                                                 12
40-50                                                 17
50-60                                                  4

Less than 10                                      2
Less than 20                                     7
Less than 30                                    17
Less than 40                                    29
Less than 50                                    46
Less than 60                                    50

More than 0                                      50
More than 10                                  48
More than 20                                   43
More than 30                                   33
More than 40                                   21
More than 50                                    4
1 mark questions :
1. What is meant by classification of data?
2. What is meant by discrete series?
3. What is meant by inclusive series?
3 mark questions:
1. Distinguish between Exclusive series and inclusive series.
2. Distinguish between discrete series and continuous series.
4 mark questions:
1. Construct a frequency distribution table for the following marks of 30 students in the form
of a  continuous series according to exclusive method.
12 33 23 25 18 35 37 49 54 51
37 15 37 15 33 42 45 47 55 69
65 63 46 29 18 37 46 59 29 35
45 27

Chapter 4: PRESENTATION OF DATA
Important terms and concepts:
1. Tabulation – Orderly arrangement of data in rows and columns.
2. Objectives of Tabulation:
a] Helps in understanding and interpreting the data easily.
b] It helps in comparing data.
c] It saves space and time.
d] Tabulated data can be easily presented in the form of diagrams and graphs.
3. Main parts of a table.
a] Title of the table – It is a brief explanation of contents of the table.
b] Table number – It is given to be used for reference.
c] Captions – A word or phrase which explains the content of a column of a table.
d] Stubs – Stubs explain contents of row of a table.
e] Body of the table: Most important part of table as it contains data.
f] Head note: Head note is inserted to convey complete information of title.
g] Source note refers to the source from which information has been taken.
h] Foot note: It is used for pointing exceptions to the data.
Types of Table:
1. Simple Table – data are presented according to one characteristic only.
2. Double Table – data are presented about two interrelated characteristics of a particular
variable.
3. Three way table – This table gives information regarding three interrelated characteristics
of a particular variable.
4. Manifold table – This table explains more than three characteristics of the data.
Diagrammatic Presentation of Data
Utility or uses of diagrammatic presentation:
1. Makes complex data simple.
2. Diagrams are attractive.
3. Diagrams save time when compared to other methods.
4. Diagrams create a lasting impression on the minds of observers.
Limitations of diagrammatic presentation:
1. They do not provide detailed information.
2. Diagrams can be easily misinterpreted.
3. Diagrams can take much time and labour.
4. Exact measurement is not possible in diagrams.
Kinds of diagrams:
I. Line diagrams – Lines are drawn vertically to show large number of items.
II. Bar diagram
1. Simple Bar diagrams – These diagrams represent only one particular type of data.
2. Multiple Bar diagrams – These diagrams represent more than one type of data at a time.
3. Subdivided Bar diagram or Component Bar diagram – These diagrams present total values
and parts in a set of a data.
III. Pie diagrams – Circle may be divided into various sectors representing various
components.
GRAPHIC PRESENTATION OF DATA
Advantages of Graphic Presentation:
1. Graphs represent complex data in a simple form.
2. Values of median, mode can be found through graphs.
3. Graphs create long lasting effect on people’s mind.
Disadvantages of graphic Presentation
1. Graphs do not show precise values.
2. Only experts can interpret graphs.
3. Graphs may suggest wrong conclusions.
Rules of Constructing graph:
1. The heading of the graph should be simple, clear and self explanatory.
2. Graphs should always be drawn with reference to some scale.
3. False baselines should be drawn if the difference between zero and the smallest value is
high.
4. Index should be made if different lines are drawn as in time series graphs.
Types of Graphs:
1. Line frequency graphs – Such graphs are used to represent discrete series.
2. Histogram – A two dimensional diagram whose length shows frequency and the breadth
shows size of class interval.
Frequency Polygon: A histogram becomes frequency polygon when a line is drawn
joining midpoints of tops of all rectangles in a histogram.
Frequency Curve: Smooth curve joining the points corresponding to the frequency and
provides frequency curve of the data.
Ogive : A curve obtained by plotting frequency data on the graph paper.
1 mark questions:
1. Give the meaning of tabulation.
2. What is the heading of rows called?
3. When should false base line be used?
4. Which graph can be used to find value of median? [Hint: ogives]
5. What is histogram?
6. What is double table?
3 mark questions:
1. State three rules of drawing a table.
2. Represent the following data with Histogram
Wages 0-10 10-20 20-30 30-40 40-50 50-60
No. of Workers 5 12 8 30 15 8
3. Construct histogram from the following:
Midpoints 5 15 25 35 45 55
Frequencies 6 12 23 30 16 8
4. Prepare a blank table to show
1] Year : 2004, 2005
2] Faculty : Arts, Science, Commerce
3] Gender : Male, Female
5. Represent the following using pie diagram
Items of Expenditure                                          Amount spent
Food                                                                                      40
Clothing                                                                               20
Fuel and lighting                                                               50
House Rent                                                                        70
Miscellaneous                                                                   20
6 marks questions :
1. Construct less than and more than ogive :
X 20-40 40-60 60-80 80-100
f     3        7          11        9
2. Draw less than and more than ogive :
Profits 10-20 20-30 30-40 40-50 50-60 60-70
No. of
Companies  4       7       10      20       17       2
3. Make histogram and frequency polygon from :
Class 0-20 20-40 40-60 60-80 80-100
Frequency 10 4 6 14 16
4. Distinguish between frequency polygon and frequency curve through an example.
5. Discuss the difference between simple table and complex table. Use example.

Chapter 5: Measures of Central Tendency
Important Term and Concepts:
1. Average: It is a value which is typical or representative of a set of data.
Averages are also called Measures of Central Tendency.
2. Functions of Average:
i] Presents complex data in a simple form.
ii] Facilitates comparison.
iii] Helps government to form policies.
iv] Useful in Economic analysis.
3. Essentials of a good Average:
i. Simple to calculate.
ii. It should be easy to understand.
iii. Rigidly defined.
iv. Based on all items of observation.
v. Least affected by extreme values.
vi. Capable of further algebraic treatment.
vii. Least affected by sampling fluctuation.
viii. Graphic measurement possible.
4. Types of Averages:
i. Arithmetic Mean
ii. Median
iii. Mode
iv. Quartiles
5. Arithmetic Mean (X)
It is the most common type of measures of central tendency.
It is obtained by dividing the sum of all observation in a series by the total number of
observation.
7. Merits of Arithmetic Mean:
1] Easy to calculate
2] Simple to understand
3] Based on all observations
4] Capable of further mathematical calculations.
Demerits :
1] Affected by extreme values.
2] Cannot be calculated in open-end series.
3] Cannot be graphically ascertained.
4] Sometimes misleading or absurd result.
 Median (M)
It is defined as the middle value of the series, when the data is arranged in ascending or
descending order.
Merits
1. Easy to understand and easy to compute.
2. Not underly affected by extreme observation.
3. It can be located graphically.
4. Appropriate average in case of open end classes.
Demerits:
1. Not based on all observations.
2. It requires arrangement of data.
3. Not capable o further algebraic treatment.
 Quartiles:
It divides the data into four equal parts.
There are three Quartiles – Q1, Q2, Q3
Q2 is called Median.
 Mode (Z)
It is the value which occurs the most frequently in a series.
Calculation of Mode
i. Individual Series :
ii. By observation identify the value that occurs most frequently in a series.
iii. By conversion into discrete series and then identify the value corresponding to which
there is highest frequency.
Discrete Series:
i. By Inspection Method.
ii. Grouping Method: By preparing Grouping Table and then preparing Analysis table.
Continuous Series:
i. Determination of Modal class by Inspection Method or Grouping table and Analysis
table.
ii. Applying the formula
Merits of Mode
i. It is easy to understand and simple to calculate.
ii. Not affected by extreme values.
iii. Can be located graphically.
iv. Easily calculated in case of open-end classes.
Demerits of Mode
i. Not rigidly defined.
ii. If mode is ill defined, mathematical calculation is complicated.
iii. Not based on all items.
iv. Not suited to algebraic treatment.
12. Relationship between Mean Median and Mode
i. In case of symmetrical distribution
Mean = Median = Mode
ii. In case of asymmetrical distribution
Mode = 3 Median – 2 Mean
1 mark questions:
1. Define an average.
2. Define mode.
3. Age of 5 students is 22, 24, 26, 21, 20. Find the modal age.
4. What is the relationship of Mean, Median and Mode in an asymmetrical distribution?
3 marks questions:
1. Calculate the Mean & Median from the following data :
Marks 10-20 20-30 30-40 40-50 50-60 60-70
No. of Students 5 5 5 20 10 5
2. Calculate Mode from the following data.
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70
No. of Students 2 5 8 10 8 5 2
4 mark questions:
1. Mention any 2 Merits and Demerits each of Arithmetic Mean.
2. What are the requisites of a good average?

Chapter 6: Measures of Dispersion
1. Dispersion refers to the variation of the items around an average.
2. Objectives of Dispersion
a) To determine the reliability of an average.
b) To compare the variability of two or more series.
c) It serves the basis of other statistical measures such as correlation etc.
d) It serves the basis of statistical quality control.
Properties of good measure of Dispersion
a) It should be easy to understand.
b) Easy to calculate.
c) Rigidly defined
d) Based on all observations.
e) Should not be unduly affected by extreme values.
Measures of Dispersion may be either absolute measures or relative measure.
Absolute Measures of Dispersion are
a) Range
 b) Quartile Deviation
 c) Mean Deviation
 d) Standard Deviation
Relative Measures of Dispersion are
a) Coefficient of Range
b) Coefficient of Quartile Deviation
c) Coefficient of Mean Deviation
d) Coefficient of Variation
Graphical method of dispersion
Lorenz Curve
Range
It is the difference between the largest and smallest value of distribution.
Computation of Range
Range = L – S
Coefficient of Range =
L- S/ L+S
Merits of Range
1. It is simple to understand and easy to calculate.
2. It is widely used in statistical quality control.
Demerits of Range
1. It is affected by extreme values in the series.
2. It cannot be calculated in case of open end series.
3. It is not based on all items.
Inter quartile range and quartile deviation
Inter quartile range is the difference between Upper Quartile (Q3) and Lower Quartile Q1.
Quartile deviation is half of inter quartile range.
Computation of Inter quartile range and quartile deviation
Inter quartile Range = Q3 – Q1
Quartile Deviation Q.D = Q3-Q1/2
Coefficient of Q.D = Q3-Q1/ Q3+Q1
Merits of Q.D
1. Easy to compute
2. Less affected by extreme values.
3. Can be computed in open ended series.
Demerits of Q.D
1. Not based on all observations
2. It is influenced by change in sample and suffers from instability.
Mean Deviation
Mean Deviation is defined as the arithmetic average of the absolute deviations [ignoring signs]
of various items from Mean or Median.
Computation of Mean Deviation
Merits of Mean Deviation
1. Based on all observations.
2. It is less affected by extreme values.
3. Simple to understand and easy to calculate.
Demerits of Mean Deviation
1. It ignores ± signs in deviations.
2. It is difficult to compute when deviations comes in fractions.
Standard Deviation:
It is defined as the root mean square deviation.
Features of Standard Deviation:
1. Value of its deviation is taken from Arithmetic Mean.
2. + and – signs of deviations taken from mean are not ignored.
Merits of Standard Deviation
i. Rigidly defined
ii. Based on STATISTICS FOR ECONOMICS