Stats Xi All Chapters Ppts

Introduction
 What is Economics?
 Meaning, scope, functions and importance of
statistics in Economics
What is Economics?
Economics is the study of how people and society
choose to employ scarce resources that could have
alternative uses in order to produce various com-
modities that satisfy their wants and to distribute
them for consumption among various persons and
groups in society.
Economics is often discussed in three parts: consumption,
production and distribution.
1. Consumption
We want to know how the consumer decides, given his
income and many alternative goods to choose from,
what to buy when he knows the prices. This is the study
of Consumption.
Key Term
Consumption — Purchase of goods by consumers to satisfy their
various needs is consumption.
2. Production
We also want to know how the producer, similarly, ch-
ooses what and how to produce for the market. This is
the study of Production.
Key Term
Production — Manufacture of goods by producers for the market
is production.
3. Distribution
Finally, we want to know how the national income or
the total income arising from what has been produced
in the country (called the Gross Domestic Product or
GDP) is distributed through wages (and salaries), pr-
ofits and interest (We will leave aside here income from
international trade and investment). This is the study
of Distribution.
Key Term
Distribution — Division of the national income into wages, pro-
fits, rents and interests is distribution.
Besides these three conventional divisions of the study
of Economics about which we want to know all the
facts, modern economics has to include some of the
basic problems facing the country for special studies.
For example:
 You might want to know why or to what extent
some households in our society have the capacity
to earn much more than others.
 You may want to know how many people in the
country are really poor, how many are middle-class,
how many are relatively rich and so on.
 You may want to know how many are illiterate, who
will not get jobs, requiring education, how many
are highly educated and will have the best job opp-
ortunities and so on.
In other words, you may want to know more facts in
terms of numbers that would answer questions about
poverty and disparity in society.
If you do not like the continuance of poverty and gross
disparity and want to do something about the ills of
society, you will need to know the facts about all these
things before you can ask for appropriate actions by
the government. If you know the facts, it may also be
possible to plan your own life better. Similarly, you
hear of disasters like Tsunami, earthquakes, the bird
flu — dangers threatening our country and so on that
affect man’s ‘ordinary business of life’ enormously.
Economists can look at these things provided they
know how to collect and put together the facts about
what these disasters cost systematically and correctly.
You may perhaps think about it and ask yourselves
whether it is right that modern economics now
includes learning the basic skills involved in making
useful studies for measuring poverty, how incomes are
distributed, how earning opportunities are related to
your education, how environmental disasters affect
our lives and so on? Obviously, if you think along
these lines, you will also appreciate why we needed
Statistics to be added to all modern courses of modern
economics.
Statistics — Meaning, Scope,
Functions and Importance
Meaning of Statistics
Statistics may be defined in two main senses —
(i) Singular Sense and
(ii) Plural Sense
Statistics in singular sense
Statistics may be defined as the collection, organi-
sation, presentation, analysis and interpretation
of numerical data.
• Collection of data: There are two methods of colle-
ction of data – census and sample method.
• Organization of data: The data collected in raw form if
organized. It involves three steps – editing, classif-
ication and tabulation.
• Presentation of data: The collected and organized
data is presented into diagrams and graphs.
• Analysis of data: Generally used methods of analysis
are measures of central tendency, measures of varia-
tion, correlation, index numbers etc.
• Interpretation of data: This means drawing conclu-
sions from the data. It is difficult task and requires
high degree of skill and experience.
Statistics in plural sense
In the plural sense statistics are defined as the statis-
tical data. The statistical data is the numerical, which
has the following characteristics:
• Statistics are aggregates of facts: single and isolated
figures are not statistics because they are unrelated
and cannot be compared.
• Statistics are affected to market extent by multiplicity
of causes: Facts and figures are affected to a large
extent by a number of forces operating on them.
• Statistics are numerically expressed: All statistics are
expressed in numbers: Qualitative statements do
not coincide a statistical statement.
• Statistics are collected in a systematic manner: Data
collected in a haphazard manner is very likely leads
to wrong conclusions.
• Statistics are collected for a pre-determined purpose:
The purpose should be well-defined and specific.
• Statistics should be placed in relation to each other:
The data should be comparable.
 Top Tip
In the absence of the above characteristics the numerical
data cannot be called statistics. Therefore we can say that,
“All statistics are numerical statements of facts but all nu-
merical statements of facts are not statistics.”
Definitions of Statistics
 “Statistics is the study of numbers relating to selected fac-
ts in a systematic form.”
 “Statistics is a branch of mathematics and also used in the
disciplines such as accounting, economics, management,
physics, finance, psychology and sociology.”
Basic Relationship between Economics
and Statistics
When we study the basic problems facing a country,
such as poverty, inequalities of income, etc., these
studies require that we know more about economic
facts. Such economic facts are also known as economic
data. Most Economics data are quantitative. For example,
a statement in Economics like “the production of rice
in India has increased from 89.14 million tonnes in
2009-10 to 111.01 million tonnes in 2017-18”, is a quanti-
tative data.
In addition to quantitative data, Economics also uses
qualitative data. The chief characteristic of such inf-
ormation is that they describe attributes of a single pe-
rson or a group of persons that is important to record
as accurately as possible even though they cannot be
measured in quantitative terms. Take, for example, the
information about an attribute of a person in terms of
degrees (like better/ worse; sick/healthy/ more healthy;
unskilled/ skilled/ highly skilled, etc.). Such qualitative
information or statistics is often used in Economics
and other social sciences and collected and stored
systematically like quantitative information (on prices,
incomes, taxes paid, etc.), whether for a single person
or a group of persons.
The purpose of collecting data about these economic
problems is to understand and explain these problems
in terms of the various causes behind them. In other
words, we try to analyse them. For example, when we
analyse the hardships of poverty, we try to explain it in
terms of the various factors such as unemployment,
low productivity of people, backward technology, etc.
But, what purpose does the analysis of poverty serve
unless we are able to find ways to mitigate it. We may,
therefore, also try to find those measures that help solve
an economic problem. In Economics, such measures
are known as policies.
No analysis of an economic problem would be possible
without data on various factors underlying an economic
problem. And, that, in such a situation, no policies can
be formulated to solve it. This is the basic relationship
between Economics and Statistics.
Scope of Statistics
Statistics is the collection, organisation, presentation,
analysis and interpretation of numerical data.
According to the above definition, the scope of statistics
is to include the following:
1. Collection of data
Statistics involves collection of data. Collection of data
forms the foundation of statistical analysis. The purp-
ose of collection of data from various sources is to sho-
w evidence for reaching a sound and clear solution to a
problem.
2. Organisation of data
This involves arranging or classifying things into gro-
ups or classes based on some criteria. The purpose of
classifying raw data is to bring order in them so that
they can be subjected to further statistical analysis
easily.
3. Presentation of data
The next step is to present the data in various forms.
There are to major forms of presentation of data:
Tabular presentation and Diagrammatic presentation.
Presentation of data is important so that voluminous
data collected could be made usable readily and are
easily comprehended.
4. Analysis
The data, then, are summarised by calculating various
numerical indices, such as mean, variance, standard
deviation, etc., that represent the broad characteristics
of the collected set of information.
5. Interpretation
The last stage in statistical investigation is interpret-
ation, i.e., drawing conclusions from the data collected
and analysed. The interpretation of data is a difficult
task and necessitates a high degree of skill and experience.
Statistical methods are no substitute for common sense!
There is an interesting story which is told to make fun of statistics.
It is said that a family of four persons (husband, wife and two
children) once set out to cross a river. The father knew the average
depth of the river. So, he calculated the average height of his fami-
ly members. Since the average height of his family members was
greater than the average depth of the river, he thought they could
cross safely. Consequently, some members of the family (children)
drowned while crossing the river.
Does the fault lie with the statistical method of calculating averages
or with the misuse of the averages?– Think about it!
Functions of Statistics
1. It presents facts in a definite form.
Statistics enables an economist to present economic
facts in a precise and definite form that helps in proper
comprehension of what is stated. When economic
facts are expressed in statistical terms, they become
exact. Exact facts are more convincing than vague
statements. Consider, for example, a statement: “The
production of rice in India in 2017-18 was higher than
that in 2009-10.” The reader will not have a clear idea
of the situation from the statement. However, if we
quantify the statement as, “the production of rice in
India has increased from 89.14 million tonnes in 2009-
10 to 111.01 million tonnes in 2017–18”, it conveys a defin-
ite information.
2. It helps in condensing mass data into a
few numerical measures (such as mean,
variance etc.).
These numerical measures help to summarise data. For
example, it would be impossible to remember the inc-
omes of all the people in a data if the number of peo-
ple is very large. Yet, one can remember easily a summary
figure like the average income that is obtained statist-
ically. In this way, Statistics summarises and presents a
meaningful overall information about a mass of data.
3. It facilitates comparison.
Unless figures are compared with others of the same
kind, they are often devoid of any meaning. For
example, examine the statement that “the production
of rice in 2019-20 is likely to be more as compared to
2018-19.” The reader would not get a clear picture from
the statement. But if we make a statement that the
production of rice in 2019-20 is likely to be 120 million
tonnes as compared to 110 million tonnes in 2018-19, it
conveys a definite meaning.
4. It helps in prediction.
For instance, the economist might be interested in pr-
edicting the changes in one economic factor due to the
changes in another factor. For example, she/he might
be interested in knowing the impact of today’s inves-
tment on the national income in future. Such an exer-
cise cannot be undertaken without the knowledge of
Statistics.
5. It helps in the formulation of plans and
policies.
Sometimes, formulation of plans and policies requires
the knowledge of future trends. For example, an econ-
omic planner has to decide in 2019 how much the eco-
nomy should produce in 2020. In other words, one must
know what could be the expected level of consumption
in 2020 in order to decide the production plan of the
economy for 2020. In this situation, one might make
subjective judgement based on the guess about cons-
umption in 2020. Alternatively, one might use statis-
tical tools to predict consumption in 2020. That could
be based on the data of consumption of past years or
of recent years obtained by surveys. Thus, statistical
methods help formulate appropriate economic policies
that solve economic problems.
Importance of Statistics in Economics
1. Statistical methods help analyse
economic problems and formulate policies
to solve them.
Statistics is an indispensable tool for an economist that
helps him to understand an economic problem.
Using its various methods, effort is made to find the
causes behind it with the help of qualitative and quan-
titative facts of an economic problem.
Once the causes of the problem are identified, it is
easier to formulate certain policies to tackle it.
Today, we increasingly use Statistics to analyse serious
economic problems such as rising prices, growing pop-
ulation, unemployment, poverty etc., to find measures
that can solve such problems.
Further, it also helps to evaluate the impact of such
policies in solving the economic problems. For exam-
ple, it can be ascertained easily using statistical techni-
ques whether the policy of family planning is effective
in checking the problem of ever-growing population.
2. Statistics finds economic relationships
using data and verifies them.
Statistics is used in finding relationships between diff-
erent economic factors. For example, an economist may
be interested in finding out:
 What happens to the demand for a commodity when
its price increases or decreases?
 Would the supply of a commodity be affected by the
changes in its own price?
 Would the consumption expenditure increase when
the average income increases?
 What happens to the general price level when the
government expenditure increases?
Such questions can only be answered if any relation-
ship exists between the various economic factors.
Whether such relationships exist or not can be easily
verified by applying statistical methods to their data.
In some cases, the economist might assume certain
relationships between them and like to test whether
the assumption she/he made about the relationship is
valid or not. The economist can do this only by using
statistical techniques.
3. In economic policies, Statistics plays a
vital role in decision making.
For example, in the present time of rising global oil
prices, it might be necessary to decide how much oil
India should import in 2025. The decision to import
would depend on the expected domestic production of
oil and the likely demand for oil in 2025.
Without the use of Statistics, it cannot be determined
what the expected domestic production of oil and the
likely demand for it would be.
Thus, the decision to import oil cannot be made unless
we know the actual requirement of oil. This vital infor-
mation that helps to make the decision to import oil
can only be obtained statistically.
Question 1
Our wants are _________ but the resources used in the
production of goods that satisfy our wants are limited and
scarce. _________ is the root of all economic problems.
(Fill up the blank)
Objective Type Questions

Answer 1
unlimited, Scarcity

Question 2
Had there been no scarcity, there would have been no
_________ .
(Fill up the blank)

Answer 2
economic problem

Question 3
The resources which the producers have are _____ and
also have ______ uses.
(Fill up the blank with correct answers)

Answer 3
limited, alternative

Question 4
Which of the following would give you qualitative
data?
beauty, intelligence, income earned, marks in a subject,
ability to sing, learning skills

Answer 4
beauty, intelligence, ability to sing, learning skills

Question 5
State, giving reason, whether the following
statement is true or false.
Statistics can only deal with quantitative data.

Answer 5
False: In addition to quantitative data, Statistics also
deals with qualitative data, which describe attributes of
a single person or a group of persons. For example, the
information about an attribute of a person in terms of
degrees (like better/ worse; sick/healthy/ more healthy;
unskilled/ skilled/ highly skilled, etc.)

Question 6
Statistics solves economic problems.

Answer 6
True: Statistics tries to analyse the economic problems
and to find those measures that help solve them. In
Economics, such measures are known as policies.

Question 7
Statistics is of no use to Economics without data.

Answer 7
True: No analysis of an economic problem would be
possible without data on various factors underlying an
economic problem. And, that, in such a situation, no
policies can be formulated to solve it.

Question 8
Match the Columns:
Column I Column II
(i) Purchase of goods by consumers (A) Distribution
to satisfy their various needs
(ii) Manufacture of goods by producers (B) Production
for the market
(iii) Division of the national income (C) Consumption
into wages, profits, rents and
interests

Answer 8
(i) – (C), (ii) – (B), (iii) – (A)

Question 9
We want to know how the national income or the total
income arising from what has been produced in the
country (called the Gross Domestic Product or GDP) is
distributed through wages (and salaries), profits and
interest .This is the study of _______.
(Choose the correct alternative)
(a) Consumption
(b) Production
(c) Distribution
(d) Statistics
Answer 9
(c) Distribution

Question 10
Statistics is the collection, organisation, _______, analysis
and ________ of numerical data.

Answer 10
presentation, interpretation

Question 11
The data are summarised by calculating various numerical
indices, such as _______, variance, _________, etc., that
represent the broad characteristics of the collected set
of information.

Answer 11
mean, standard deviation

Question 12
Consider the following statement. Will the reader
have a clear idea of the situation from the state-
ment?
“The production of rice in India in 2017-18 was higher
than that in 2009-10.”

Answer 12
No; however, if we quantify the statement as, “the
production of rice in India has increased from 89.14
million tonnes in 2009-10 to 111.01 million tonnes in
2017–18”, it conveys a definite information.

Question 13
Statistical methods help analyse _______ and formulate
_______ to solve them.

Answer 13
economic problems, policies

Question 14
In economic policies, Statistics plays a vital role in ____.
(Fill up the blank with correct answer)

Answer 14
decision making

Question 15
Statistics is defined in terms of numerical data in the
__________.
(a) Singular sense
(b) Plural sense
(c) Either (a) or (b)
(d) Both (a) and (b)

Answer 15
(b) Plural sense

Question 16
Statistics is concerned with __________.
(a) Qualitative Information
(b) Quantitative Information

Answer 16

Question 17
Statistics is applied in __________.
(a) Economics
(b) Business Management
(c) Commerce and Industry
(d) All of these

Answer 17
(d) All of these

Question 1
What is Economics? (1 mark)
Exercises
Question 2
Define Statistics. Explain the Scope of Statistics.
(5 marks)
Exercises
Question 3
Define Statistics. Explain briefly any four functions of
Statistics.
(5 marks)
Exercises
Question 4
Explain the importance of Statistics in Economics with
examples.
(6 marks)
Exercises
Question 5
“Statistics enables an economist to present economic
facts in a precise and definite form.” Explain with an
example.
(3 marks)
Exercises
Answer 5
Statistics enables an economist to present economic facts
in a precise and definite form that helps in proper compre-
hension of what is stated. When economic facts are expr-
essed in statistical terms, they become exact. Exact facts
are more convincing than vague statements. Consider, for
example, a statement: “The production of rice in India in
2017-18 was higher than that in 2009-10.” The reader will
not have a clear idea of the situation from the statement.
On the other hand, if we quantify the statement as, “the
production of rice in India has increased from 89.14
million tonnes in 2009-10 to 111.01 million tonnes in
2017–18”, it conveys a definite information.
Exercises
Question 6
How does Statistics help in predicting the changes in
economic factors? Explain with an example.
(3 marks)
Exercises
Answer 6
Statistics help in prediction. For instance, the economist
might be interested in predicting the changes in one eco-
nomic factor due to the changes in another factor. For
example, she/he might be interested in knowing the impact
of today’s investment on the national income in future.
Such an exercise cannot be undertaken without the know-
ledge of Statistics.
Exercises
Question 7
How does Statistics help in the formulation of plans and
policies? Explain with an example.
(3 marks)
Exercises
Answer 7
Formulation of plans and policies requires the knowledge
of future trends. For example, an economic planner has to
decide in 2019 how much the economy should produce in
2020. In other words, one must know what could be the
expected level of consumption in 2020 in order to decide
the production plan of the economy for 2020. In this
situation, one might make subjective judgement based on
the guess about consumption in 2020. Alternatively, one
might use statistical tools to predict consumption in 2020.
That could be based on the data of consumption of past
years or of recent years obtained by surveys. Thus, stati-
stical methods help formulate appropriate economic pol-
icies that solve economic problems. Exercises
Question 8
Statistical methods help analyse economic problems and
formulate policies to solve them. Explain with examples.
(3 marks)
Exercises
Answer 8
Statistics is an indispensable tool for an economist that
helps him to understand an economic problem. Using its
various methods, effort is made to find the causes behind
it with the help of qualitative and quantitative facts of an
economic problem. Once the causes of the problem are
identified, it is easier to formulate certain policies to tackle
it.
Today, we increasingly use Statistics to analyse serious
economic problems such as rising prices, growing popu-
lation, unemployment, poverty etc., to find measures that
can solve such problems. Further, it also helps to evaluate
Exercises
the impact of such policies in solving the economic pro-
blems. For example, it can be ascertained easily using stati-
stical techniques whether the policy of family planning is
effective in checking the problem of ever-growing popula-
tion.
Exercises
Question 9
‘The Government and policy makers use statistical data
to formulate suitable policies of economic development’.
Illustrate with two examples.
(5 marks)
Exercises
Answer 9
The Government and policy makers use statistical data to
formulate suitable policies of economic development.
Example 1: An economist may be interested in finding
out what happens to the demand for a commodity when
its price increases or decreases? Or, would the supply of a
commodity be affected by the changes in its own price?
Or, would the consumption expenditure increase when
the average income increases? Or, what happens to the
general price level when the government expenditure
increases? Such questions can only be answered if any
relationship exists between the various economic factors.
Exercises
Whether such relationships exist or not can be easily ver-
ified by applying statistical methods to their data. In some
cases the economist might assume certain relationships
between them and like to test whether the assumption
she/he made about the relationship is valid or not. The
economist can do this only by using statistical techniques.
Example 2: In the present time of rising global oil prices,
it might be necessary to decide how much oil India should
import in 2025. The decision to import would depend on
the expected domestic production of oil and the likely de-
mand for oil in 2025. Without the use of Statistics, it cann-
Exercises
ot be determined what the expected domestic production
of oil and the likely demand for it would be. Thus, the
decision to import oil cannot be made unless we know the
actual requirement of oil. This vital information that helps
to make the decision to import oil can only be obtained
statistically.
Exercises
Self-Assessment Test 1
Introduction
Time Allowed: 45 minutes Maximum Marks: 20

Question 1
What is Economics? (1 mark)
Self Assessment Test-1

Question 2
Define Consumption. (1 mark)

Question 3
The most fundamental economic problem is:
(Choose the correct alternative) (1 mark)
(a) health
(b) security
(c) export and import
(d) scarcity

Answer 3
(d) scarcity

Question 4
Today’s activities of my friend Atul who is a singer,
given below:
(i) In the morning He perform stage show for singing
and get `10000 as a fee.
(ii) In the evening he celebrate his 4 years daught-
er’s birthday at home and he sang a song for her
From the above information, state which of the
following statements is true.
(a) Activity (i) is an economic activity and (ii) is a
non-economic activity.
(b) Activity (i) is a non-economic activity and (ii) is
an economic activity
(c) Both (i) and (ii) are economic activities.
(d) Both (i) and (ii) are non-economic activities.

Answer 4
(a) Activity (i) is an economic activity and (ii) is a
non-economic activity.

Question 5
Which is not considered as an economic activity?
(a) Banking
(b) Sujata helping her mother in the kitchen
(c) Agriculture
(d) Business

Answer 5
(b) Sujata helping her mother in the kitchen

Question 6
The factors of production are:
(a) Manager, labour, raw materials and land
(b) Machinery, factory, electricity and labour
(c) Entrepreneur, land, labour, and capital
(d) Money, labour, entrepreneur and raw materials

Answer 6
(c) Entrepreneur, land, labour, and capital

Question 7
Statistics deals with:
(a) only quantitative data.
(b) only qualitative data.
(c) neither qualitative nor quantitative data.
(d) None of these

Answer 7
(a) only quantitative data.

Question 8
Choose the correct sequence of step of statistical
tools.
(a) Collection of data, organisation of data, pr-
esentation of data, analysis of data, inter-
pretation of data
(b) Organisation of data, presentation of data,
collection of data, interpretation of data, an-
alysis of data
(c) Collection of data, analysis of data, pres-
entation of data, organisation of data, inte-
rpretation of data
(d) Collection of data, analysis of data, organ-
isation of data, presentation of data, inter-
pretation of data.

Answer 8
(a) Collection of data, organisation of data, pr-
esentation of data, analysis of data, inter-
pretation of data

Question 9
Define statistics as a singular and plural sense.
(3 marks)

Question 10
Explain the importance of statistics in economics.
(3 marks)

Question 11
Explain any four functions of statistics. (6 marks)

Introduction
Time Allowed: 45 minutes Maximum Marks: 25

Question 1
Economics is best defined as the study of how people:
(a) use their infinite resources.
(b) attain wealth.
(c) choose abundance over scarcity.
(d) attain education from best school.

Answer 1
(c) choose abundance over scarcity.

Question 2
A consumer is one who consumes goods and services
for:
(a) education.
(b) satisfaction of his wants.
(c) helping others.
(d) earning money.

Answer 2
(b) satisfaction of his wants.

Question 3
Which of the following is not a non-economic activity?
(a) Blood donation for a noble cause
(b) Household chores by a housewife
(c) Taking care of children by a mother
(d) Services provided by a doctor in a hospital

Answer 3
(d) Services provided by a doctor in a hospital

Question 4
Consumption is:
(a) supply of goods and services.
(b) using goods and services for satisfying wants.
(c) riding a car safely.
(d) production of goods and services for human
wants.

Answer 4
(d) production of goods and services for
human wants.

Question 5
How does Statistics help in predicting the changes in
economic factors? Explain with an example.
(3 marks)

Question 6
How does Statistics help in the formulation of plans
and policies? Explain with an example.
(3 marks)

Question 7
Statistical methods help analyse economic problems
and formulate policies to solve them. Explain with
examples.
(4 marks)

Collection of Data
 Sources of data – primary and secondary

 How basic data is collected, with concepts of Sampling; Methods of
collecting data
 Some important sources of secondary data: Census of India and National
Sample Survey Organisation.
2.1
Sources of Data – Primary
and Secondary
Statistical data can be obtained from two sources —
Primary and Secondary.
Primary Data
The researcher may collect the data by conducting
an enquiry. Such data are called Primary Data, as
they are based on first hand information.
• Primary data is obtained by conducting a survey.
• Survey includes various steps, which need to be pla-
nned carefully.
• Survey can be done by personal interviews, mailing
questionnaires and telephone interviews.
Suppose, you want to know about the popularity of a
filmstar among school students. For this, you will have
to enquire from a large number of school students, by
asking questions from them to collect the desired inf-
ormation. The data you get, is an example of primary
data.
Secondary Data
If the data have been collected and processed
(scrutinised and tabulated) by some other agency,
they are called Secondary Data.
• There are various agencies which collect, process,
tabulate and publish statistical data. These are used
as secondary data.
• Secondary data can be obtained either from published
sources such as government reports, documents, ne-
wspapers, books written by economists or from any
other source, e.g. a website.
• Use of secondary data saves time and cost. For exa-
mple, after collecting the data on the popularity of
the film star among students, you publish a report. If
somebody uses the data collected by you for a similar
study, it becomes secondary data.
The data are primary to the source that collects and proce-
sses them for the first time and secondary for all sources
that later use such data.
The choice of source of data and mode of data collection
depends on the objective of the study.
Difference between Primary Data
and Secondary Data
Basis Primary Data Secondary Data
Meaning The data collected by the Data which are already in
investigator for his own existence and which have
purpose for the first time are been collected for some
called primary data. other purposes are called
secondary data.
Example Investigator makes a list of Investigator collects the
marks obtained by students marks obtained by class
in economics of class XI by teacher in economics of
interrogating them. class XI from his school
records like award list,
result register etc.
Originality Primary data are original Secondary data are not
because they are collected by original since investigator
investigator himself. makes use of the data
collected by other agencies.
Cost These are costlier in terms of These are less costlier in
time, money and efforts terms of time, money and
involved. efforts involved.
Source Primary data are collected by Secondary data are already
some agency or person by collected and processed by
using the method of data some person or agency and
collection. is ready for use.
Time factor It requires longer time for Secondary data requires less
data collection. time.
Reliability Primary data is more reliable Secondary data is less
and and suitable to the enquiry reliable and less suitable as
suitability as the investigators himself someone else has collected
collects it. the data which may not
serve the purpose.
Precautions There is no great need for Secondary data should be
precautions while using used with great care and
primary data. cautions.
2.2
How Basic Data is
Collected?
Basic data is collected by conducting a survey. Survey
is a method of gathering information from individuals.
Do you know how a manufacturer decides about a product?
They conduct a survey by asking questions about the
product from a large group of people. The purpose of
surveys is to describe some characteristics like price,
quality, usefulness.
The most common type of instrument used in surveys
is questionnaire/interview schedule.
The questionnaire is either self - administered by
the respondent or administered by the researcher
(enumerator) or trained investigator.
Points to be kept in mind while
preparing the questionnaire/interview
schedule
1. The questionnaire should not be too long.
The number of questions should be as minimum as
possible. The longer the questionnaire, the lower will
be the rate of response; the shorter the questionnaire,
the higher will be the rate of response.
2. The questionnaire should be easy to
understand.
The questions should be short and simple to underst-
and. Technical or ambiguous or difficult words should
be avoided.
3. The questions should be arranged in an
order.
The questions should be arranged in a logical order so
that the person answering should feel comfortable.
Thus, it is undesirable to ask a man how many child-
ren he has before asking whether he is married or not.
Similarly, it would be illogical to ask a man his income
before asking him whether he is employed or not.
4. The series of questions should move
from general to specific.
The questionnaire should start from general questions
and proceed to more specific ones.
For example:
Poor Q
(i) Is increase in electricity charges justified?
(ii) Is the electricity supply in your locality regular?
Good Q
(i) Is the electricity supply in your locality regular?
(ii) Is increase in electricity charges justified?
5. The questions should be precise and
clear.
For example:
Poor Q
What percentage of your income do you spend on clothing
in order to look presentable?
Good Q
What percentage of your income do you spend on clothing?
6. The questions should not be ambiguous.
They should enable the respondents to answer quickly,
correctly and clearly.
For example:
Poor Q
Do you spend a lot of money on books in a month?
Good Q
How much do you spend on books in a month?
(Tick mark the appropriate option)
(i) Less than `200
(ii) `200–300
(iii) `300–400
(iv) More than `400
7. The question should not use double
negatives.
The questions starting with “Wouldn’t you” or “Don’t
you” should be avoided, as they may lead to biased
responses.
For example:
Poor Q
Don’t you think smoking should be prohibited?
Good Q
Do you think smoking should be prohibited?
8. The question should not be a leading
question.
It must not give a clue about how the respondent sho-
uld answer.
For example:
Poor Q
How do you like the flavour of this high quality tea?
Good Q
How do you like the flavour of this tea?
9. The question should not indicate
alternatives to the answer.
For example:
Poor Q
Would you like to do a job after college or be a housewife?
Good Q
What would you like to do after college?
Closed-ended questions and Open-
ended questions
The questionnaire may consist of closed - ended (or
structured) questions or open-ended (or unstructured)
questions.
Closed-ended (or structured) questions
Closed-ended or structured questions can either
be a two-way question or a multiple choice question.
 When there are only two possible answers, ‘yes’ or
‘no’, it is called a two-way question. For example:
Q. Do you buy most of your daily requirements from the
Big Bazaar? Yes  No 
 When there is a possibility of more than two opti-
ons of answers, multiple choice questions are more
appropriate. For example:
Q. Why did you sell your land?

(i) To pay off the debts. 
(ii) To finance children’s education. 
(iii) To invest in another property. 
(iv) Any other (please specify) ....................................
Advantages: Closed-ended questions are easy to use,

score and to codify for analysis, because all responde-
nts can choose from the given options.
Limitations:
1. Closed-ended questions are difficult to write as the
alternatives should be clearly written to represent
both sides of the issue.
2. There is also a possibility that an individual’s true
response is not present among the options given.
For this, the choice of ‘Any Other’ is provided, wh-
ere the respondent can write a response, which was
not anticipated by the researcher.
3. Another limitation of multiple-choice questions is
that they tend to restrict the answers by providing
alternatives, without which the respondents may
have answered differently.
Open-ended (or unstructured) questions
Open-ended questions allow for more individual-
lised responses, but they are difficult to interpret
and hard to score, since there are a lot of variati-
ons in the responses.
For example:
Q. What is your view about demonetisation?
2.3
Mode/Methods of Data
Collection
You may have come across a television show in which
reporters ask questions from children, housewives or
general public regarding their examination performa-
nce or a brand of soap or a political party? The purpose
of asking questions is to do a survey for collection of
data. There are three basic ways of collecting data:
(i) Personal Interviews,
(ii) Mailing (Questionnaire) Surveys, and
(iii) Telephone Interviews.
1. Personal Interviews
This method is used when the researcher (or investi-
gator) has access to all the members. The researcher c-
onducts face-to-face interviews with the respondents.
Advantages: Personal interviews are preferred due to
various reasons:
(i) Personal contact is made
between the respondent
and the interviewer.
The interviewer has the
opportunity of explaining
the study and answering the queries of responde-
nts. The interviewer can request the respondent
to expand on answers that are particularly important.
(ii) Misinterpretation and misunderstanding can be
avoided.
(iii) Watching the reactions of respondents can provi-
de supplementary information.
Disadvantages/Demerits:
Personal interview has some demerits too.
(i) It is expensive, as it requires trained interviewers.
(ii) It takes longer time to complete the survey.
(iii) Presence of the researcher may inhibit responde-
nts from saying what they really think.
2. Mailing (Questionnaire) Surveys/Mailed
Interviews
When the data in a survey are collected by mail, the
questionnaire is sent to each individual by mail with a
request to complete and return it by a given date. The-
se days on-line surveys or surveys through short mess-
aging service, i.e., SMS are popular.
Advantages: Mailed interviews have the following ad-
vantages:
(i) It is less expensive.
(ii) It allows the researcher to have
access to people in remote areas
too, who might be difficult to reach in person or
by telephone.
(iii) It does not allow influencing of the respondents
by the interviewer.
(iv) It also permits the respondents to take sufficient
time to give thoughtful answers to the questions.
Disadvantages/Demerits:
The disadvantages of mail survey are:
(i) There is less opportunity to provide assistance in
clarifying instructions; so there is a possibility of
misunderstanding the questions.
(ii) Mailing is also likely to produce low response rat-
es due to certain factors, such as returning the
questionnaire without completing it, not returni-
ng the questionnaire at all, loss of questionnaire
in the mail itself, etc.
3. Telephone Interviews
In a telephone interview, the investigator asks questions
over the telephone.
Advantages: The advantages of telephone interviews
are:
(i) They are cheaper than personal interviews.
(ii) They can be conducted in a shorter time.
(iii) They allow the researcher to assist
the respondent by clarifying the
questions.
(iv) Telephonic interview is better in
cases where the respondents are reluctant to ans-
wer certain questions in personal interviews.
Disadvantages:
(i) Limited use/low access to people, as many peo-
ple may not own telephones or due to network
problem.
(ii) Reactions cannot be watched
Pilot Survey
Once the questionnaire is ready, it is advisable to
conduct a try-out with a small group which is kno-
wn as Pilot Survey (or Pre-testing of the question-
naire).
Advantages:
1. The pilot survey helps in providing a preliminary
idea about the survey.
2. It helps in pre-testing of the questionnaire, so as
to know the shortcomings and drawbacks of the
questions.
3. Pilot survey also helps in assessing the suitability
of questions, clarity of instructions, performance
of enumerators and the cost and time involved in
the actual survey.
 Top Tip
Population (or the Universe) in statistics
Population (or the Universe) in statistics means totality of the
items under study. Thus, the Population is a group to which the
results of the study are intended to apply. A population is
always all the individuals/items who possess certain characteri-
stics (or a set of characteristics), according to the purpose of
the survey. The first task in selecting a sample is to identify the
population. Once the population is identified, the researcher
selects a method of studying it. If the researcher finds that
survey of the whole population is not possible, then he/ she
may decide to select a Representative Sample.
2.4
Census and Sample
Surveys
Census (or Complete Enumeration)
A survey, which covers every element of the pop-
ulation, (i.e. every individual/ unit belonging to
the population) is known as Census.
Example: Suppose you want to study the average in-
come of people in a certain region. According to the
Census method, you would be required to find out the
income of every individual in the region, add them up
and divide by number of individuals to get the average
income of people in the region.
This method would require huge expenditure, as a
large number of enumerators have to be employed.
Extra Shots
If certain agencies are interested in studying the total population
in India, they have to obtain information from all the households
in rural and urban India. It is carried out every ten years. A house-
to-house enquiry is carried out, covering all households in India.
Demographic data on birth and death rates, literacy, employment,
life expectancy, size and composition of population, etc., are
collected and published by the Registrar General of India. The last
Census of India was held in 2011. According to the Census 2011,
population of India was 121.09 crore, which was 102.87 crore in
2001. Census 1901 indicated that the population of the country
was 23.83 crore. Since then, in a period of 110 years, the popu-
lation of the country has increased by more than 97 crore. The
average annual growth rate of population which was 2.2 per cent
per year in the decade 1971-81 came down to 1.97 per cent in
1991-2001 and 1.64 per cent during 2001-2011.
Merits of Census Method (Survey)
1. Reliable and accurate: Data are more accurate
and reliable because under this method informa-
tion relating to each unit is collected.
2. Less bias: Since information is collected about e-
ach unit the possibility of personal element or bias
is minimum.
3. Comprehensive information: This method faci-
litates the collection of wide and comprehensive
information.
4. More appropriate: For certain types of survey,
this method is most appropriate such as populat-
ion census.
5. More representative: It contains all the charact-
eristics of the universe and hence is more represe-
ntative with regard to characteristics of the uni-
verse.
Limitations of Census Method (Survey)
1. Costly: This method is very costly.
2. More time consuming: This method involves a
lot of time.
3. Not applicable to infinite universe: This method
cannot be used in many situations. For example, it
cannot be used where universe is infinite or where
unit may finish during the process of testing.
Sample
A sample refers to a smaller group or section sel-
ected from the population from which the
relevant information is to be obtained.
A good sample (representative sample) is generally s-
maller than the population and is capable of providing
reasonably accurate information about the population
at a much lower cost and shorter time.
Example: Suppose you want to study the average in-
come of people in a certain region. According to the
Sample method, you select a representative sample, of
a few individuals, from the region and find out their
income. The average income of the selected group of
individuals is used as an estimate of average income of
the individuals of the entire region.
What is a ‘Sample Frame’?

The term ‘Sample frame’ refers to a list, map or other specifications
of the units which constitute the available information relating to the
sampling selected for a particular survey. For example, if we wish to
know the capital invested and number of workers working in small
units at Mumbai, then we must have a complete list of all small firms
with addresses included in the sample at Mumbai. This list is known
as sample frame.
Advantages of Sampling Method
Most of the surveys are sample surveys. These are pref-
erred in statistics because of a number of reasons.
1. Economical: It saves time, money and labour. As
we need a smaller team of enumerators, it is easier
to train them and supervise their work more effec-
tively.
2. Reliable and accurate: If sample can be taken
out properly with due care and caution, it can pro-
vide reasonably reliable and accurate information
at a lower cost and shorter time. As samples are
smaller than population, more detailed informa-
tion can be collected by conducting intensive enq-
uiries.
3. More scientific: This method is more scientific
because its conclusions can be retested.
4. More appropriate for wide areas: This method
is more appropriate for such surveys whose scope
or area is very wide.
5. Quick results: Results can be obtained very quic-
kly with the help of this method.
Limitations of Sampling Method
1. Lack of accuracy: Under this survey data are not
very accurate.
2. Wrong conclusions: If sample is not represent-
ative, then all the conclusions become wrong.
3. Selection of improper sample: For the proper
selection of sample, special knowledge and under-
standing is required.
4. Not appropriate where census survey is desira-
ble: This method is of no use for such surveys
where the information about the whole universe is
required such as population census.
5. Small size of universe: It is difficult to frame a
sample where the size of universe is very small.
6. Diverse items: It is difficult to conduct a sample
survey where items of universe are very diverse.
Which method is better – census method or sampling method?

Sampling method is generally regarded better and more appropriate in
comparison to census method. This becomes clear from the following.
 Keeping into view time, money and labour involved, this method is
more appropriate.
 For such data about which information is regularly available (such as
information about newly born babies), this method is more appro-
priate.
 In some surveys if every unit of universe is tested then all the units
are finished such as finding out the taste of an eatable item.
 In many cases census survey is not possible.
Keeping in view the above facts, sample survey is gen-
erally more appropriate than census survey. These days
sample survey is more popular so much that even the
accuracy of census survey is tested with sample survey.
Difference between Census and Sampling

methods of collecting data
Basis Census Method Sampling Data
Coverage The Census covers every The Sample is a smaller
individual/unit belonging to group selected from the
the population. population from which the
relevant information would
be sought.
Nature of Extensive enquiry is conducted Limited enquiry is
enquiry as each and every unit of the conducted as only few units
population is studied. of the population are
studied.
Accuracy Since all items are studied Since only representative
under census method, highest samples are studied under
degree of accuracy is possible. sample method. It is less
accurate. However errors
can be easily detected and
removed.
Economy As all items are studied under As only few samples are
census method, this method is studied under sample
very expensive and involves a method, this method is
lot of money and efforts. comparatively less
expensive.
Time The Census method is very The Sample method is less
involved time consuming as all items time consuming as only
are studied. samples are studied.
Suitability The Census method is suitable The Sample method is
when items in the universe suitable when items in the
have diverse characteristics. universe are homogeneous.
This method is suitable when This method is suitable
the area under investigation is when the area under
relatively small. investigation is large.
Methods/Types of Sampling
There are two main types of sampling — random
sampling and non-random sampling.
Random Sampling (or Probability
Sampling)
Random sampling is one where the individual un-
its from the samples are selected at random. In
random sampling, every individual has an equal
chance of being selected.
Example: The government wants to determine the
impact of the rise in petrol price on the household
budget of a particular locality having 300 households.
For this, a representative (random) sample of 10 hou-
seholds has to be taken and studied. The names of all
300 households of that area are written on paper and
mixed, then 10 names to be interviewed are selected
one by one.
In random sampling, every individual has an equal ch-
ance of being selected.
Thus, all 300 sampling units (also called sampling fra-
me) of the population got an equal chance of being
included in the sample of 10 units and hence the sam-
ple, such drawn, is a random sample.
This is also called lottery method.
Now-a-days, computer programmes are used to select
random samples.
Non-Random Sampling (or Non-
Probability Sampling)
In a non-random sampling method, all the units
of the population do not have an equal chance of
being selected. The convenience or judgement of
the investigator plays an important role in select-
ion of the sample.
They are mainly selected on the basis of judgement,
purpose, convenience or quota and are non-random
samples.
Example: Suppose you have to select 10 out of 100
households in a locality. You have to decide which
household to select and which to reject.
You may select the households conveniently situated
or the households known to you or your friend.
In this case, you are using your judgement (bias) in se-
lecting 10 households.
This way of selecting 10 out of 100 households is called
a non-random sampling.
2.5
Some Important Sources
of Secondary Data:
Census of India and Nsso
The Census of India and National Sample Survey Org-
anisation (NSSO) are two important agencies at the n-
ational level, which collect, process and tabulate data
on many important economic and social issues.
The Census of India
 The Census of India provides the most complete a-
snd continuous demographic record of population.
The Census is being regularly conducted every ten
years since 1881. The first Census after Independen-
ce was conducted in 1951.
 The Census officials collect information on various
aspects of population such as the size, density, sex
ratio, literacy, migration, rural-urban distribution,
etc.
 Census data is interpreted and analysed to underst-
and many economic and social issues in India.
National Sample Survey Organisation

(NSSO)
 The NSSO was established by the Government of
India to conduct nationwide surveys on socio-eco-
nomic issues. The NSSO does continuous surveys
in successive rounds. The data collected by NSSO
are released through reports and its quarterly jou-
rnal ‘Sarvekshana’.
 NSSO provides periodic estimates of literacy,
school enrollment, utilisation of educational servi-
ces, employment, unemployment, manufacturing
and service sector enterprises, morbidity, materni-
ty, child care, utilisation of the public distribution
system etc. For instance, the NSSO 68th round sur-
vey (2011-12) was on consumer expenditure.
 The NSSO also collects details of industrial activit-
ies and retail prices for various goods. They are us-
ed by Government of India for planning purposes.
Extra Shots
Sources of Secondary Data
PUBLISHED SOURCES
 Government publications: Government publications such as
five-year plans, Economic Surveys, Annual Budgets, RBI Bulle-
tins, Currency and Finance Reports, Annual Reports, Annual Re-
ports of Commercial Banks etc.
 Semi-Government Publications: Semi-government publications
such as reports and data collected by Banks, Corporations, Mu-
nicipal Committees, Punchayats etc.
 Reports of Committees and Commission: Reports of various
committees and commission which are appointed from time to ti-
me by government and semi-government agencies.
 Research Publications of Universities and Research Institutes:
Publications of universities and research institutes such as Instit-
ute of Economic Growth/ India Statistical Institute etc.
 Newspapers Reports and Publications: Publications of newsp-
apers and magazines such as the Economic Times, The Financial
Express, The Economists etc.
 Publications of Commercial houses and Trade Associations:
Publications of business and commercial houses such as that
DCM, Hindustan Lever, Hindustan Machine Tools etc. and of trade
associations.
 Research Publications of Individual Scholars: Individual rese-
arch scholars also publish their research findings and papers.
 International Publications: International institutions such as
UNO, IMF, ILO, WHO and foreign governments publish lots of
statistical information. Such information is relied upon as secon-
dary data.
UNPUBLISHED SOURCES
Secondary data are available from unpublished sources also. Many
researchers and trade organisations collect information for various
objectives which is not published.
Question 1
The purpose of the survey is to collect______ .
(Fill up the blank)

Answer 1
data

Question 2
Economic facts, expressed in terms of numbers, are called
______________.
(Fill up the blank)

Answer 2
data

Question 3
The purpose of data collection is:
(a) to understand a problem.
(b) to explain a problem.
(c) to analyse a problem to find its causes.
(d) All of the above

Answer 3

Question 4
Primary data is obtained by:
(a) personal interviews
(b) mailing questionnaires
(c) telephone interviews
(d) All of these

Answer 4
(d) All of these

Question 5
State giving reason whether the following
statement is True or False:
Telephone survey is the most suitable method of
collecting data, when the population is literate a-
nd spread over a large area.

Answer 5
True: Telephonic interview is better in such cases beca-
use the respondents are reluctant to answer certain qu-
estions in personal interviews.

Question 6
State, giving reason, whether the following st-
atement is true or false.
Data collected by investigator is called the secondary
data.

Answer 6
False: The investigator (or researcher) may collect data
by conducting an enquiry. Such data are called primary
data as they are based on first hand information.

Question 7
There is a certain bias involved in the non-random
selection of samples.

Answer 7
True: In a non-random sampling method, one may use
his judgement (bias) in selecting the sample. All the
units of the population do not have an equal chance of
being selected.

Question 8
Suppose, you want to know about the popularity of a fil-
mstar among school students. For this, you will have to
enquire from a large number of school students, by asking
questions from them to collect the desired information.
The data you get, is an example of ____________ .
(Fill up the blank)

Answer 8
primary data

Question 9
The data are _________ to the source that collects and
processes them for the first time and __________ for
all sources that later use such data.
(Fill up the blanks)

Answer 9
primary, secondary

Question 10
There are various agencies which collect, process, tabul-
ate and publish statistical data. These are used as ______.
(a) Primary data
(b) Secondary data
(c) Statistics
(d) Economic data

Answer 10
(b) Secondary data

Question 11
The most common type of instrument used in surveys
is __________________ .

Answer 11
questionnaire/interview schedule.

Question 12
How is the questionnaire administered?
(a) Self-administered by the respondent
(b) By the researcher (enumerator)
(c) By the trained investigator
(d) All of these

Answer 12
(d) All of these

Question 13
In a questionnaire, the questions should ___________ .
(a) be precise and clear
(b) move from general to specific
(c) Both (a) and (b)
(d) be ambiguous

Answer 13

Question 14
In a questionnaire, the questions should not _________.
(a) use double negatives
(b) be a leading question
(c) indicate alternatives to the answer

Answer 14

Question 15
Closed-ended or structured questions can be a _____.
(a) two-way question
(b) multiple choice question
(d) Neither (a) nor (b)

Answer 15

Question 16
Which of the following is true for open-ended questions?
(a) They allow for more individualised responses.
(b) They are difficult to interpret and hard to score.
(c) There are a lot of variations in the responses.

Answer 16

Question 17
Match the Columns:
Column I Column II
(i) The researcher conducts (A) Questionnaire Surveys
face-to-face interviews with
the respondents.
(ii) When the data in a survey (B) Personal Interviews
are collected by mail.
(iii) The investigator asks (C) Telephone Interviews
questions over the telephone.

Answer 17
(i) – (B), (ii) – (A), (iii) – (C)

Question 18
Which mode of data collection has the following
advantages?
• Least expensive
• Only method to reach remote areas
• No influence on respondents
• Maintains anonymity of respondents
• Best for sensitive questions

Answer 18
Mailing (Questionnaire) Surveys /Mailed Interviews

Question 19
Which of the following mode of data collection has the
following limitation?
Possibility of influencing respondents
(a) Questionnaire Surveys
(b) Personal Interviews
(c) Telephone Interviews
(d) Both (b) and (c)

Answer 19

Question 20
Pre-testing of the questionnaire is known as ________.
(Fill in the blank)

Answer 20
Pilot Survey

Question 21
Demographic data on birth and death rates, literacy, e-
mployment, life expectancy, size and composition of po-
pulation, etc., are collected and published by the Regi-
strar General of India. This is an example of _______
(Census/Sample) Survey.
(Fill up the blanks with correct option)

Answer 21
Census

Question 22
A _____________ refers to a smaller group or section
selected from the population from which the relevant
information is to be obtained.
(Fill up the blanks with correct answer)

Answer 22
Sample

Question 23
In __________ (random/non-random) sampling, every
individual has an equal chance of being selected.
(Fill up the blank with correct option)

Answer 23
random

Question 24
The government wants to determine the impact of the
rise in petrol price on the household budget of a par-
ticular locality having 300 households. For this, a rep-
resentative (random) sample of 10 households has to be
taken and studied. The names of all 300 households of
that area are written on paper and mixed, then 10 names
to be interviewed are selected one by one. In random
sampling, every individual has an equal chance of being
selected. All 300 sampling units, also called _________
of the population got an equal chance of being included
in the sample of 10 units and hence the sample, such dr-
awn, is a random sample.This is also called _________ .

Answer 24
sampling frame, lottery method

Question 25
Suppose you have to select 10 out of 100 households in
a locality. You have to decide which household to select
and which to reject. You may select the households co-
nveniently situated or the households known to you or
your friend. In this case, you are using your judgement
(bias) in selecting 10 households. This way of selecting 10
out of 100 households is called a _________ (random/
non-random) sampling.

Answer 25
non-random

Question 26
_______ provides the most complete and continuous
demographic record of population.

Answer 26
The Census of India

Question 27
Match the Columns:
Column I Column II
(i) Census Method (A) Data obtained from published or
unpublished sources.
(ii) Sampling Method (B) Data is collected from each and
every element of the population.
(iii) Primary Data (C) Some representative items of a
population are selected for
analysis.
(iv) Secondary Data (D) Data collected by an investigator.

Answer 27
(i) – (B), (ii) – (C), (iii) – (D), (iv) – (A)

Question 28
Data collected on religion from the census reports are:
(a) Primary data
(b) Secondary data
(c) Sample data
(d) Either (a) or (b)

Answer 28
(b) Secondary data

Question 29
The data collected on the height of a group of students
after recording their heights with a measuring tape are:
(a) Primary data
(b) Secondary data
(c) Discrete data
(d) Continuous data.

Answer 29
(a) Primary data

Question 30
The primary data are collected by:
(a) Interview method
(b) Observation method
(c) Questionnaire method

Answer 30

Question 31
The quickest method to collect primary data is
(a) Personal interview
(b) Mailed interview
(c) Telephone interview
(d) By observation

Answer 31
(c) Telephone interview

Question 32
The best method to collect data, in case of a natural
calamity, is:
(b) Indirect interview
(c) Questionnaire method
(d) Direct observation method.

Answer 32

Question 33
Which method of data collection covers the widest area?
(a) Telephone interviews
(b) Mailing (questionnaire) surveys
(c) Personal interviews
(d) All of these.

Answer 33
(b) Mailing (questionnaire) surveys

Question 34
The amount of non-responses is maximum in
(a) Mailing (questionnaire) surveys
(b) Interview method
(c) Observation method
(d) All of these.

Answer 34
(a) Mailing (questionnaire) surveys

Question 35
Some important sources of secondary data are:
(a) Census of India and NSSO
(b) International and primary sources
(c) Private and primary sources
(d) Government sources

Answer 35
(a) Census of India and NSSO

Question 1
Closed-ended questions are easy to use, score and to
codify for analysis.Why? (1 mark)
Exercises
Answer 1
Because all respondents can choose from the given
options.
Exercises
Question 2
In a village of 200 farms, a study was conducted to find
the cropping pattern. Out of the 50 farms surveyed, 50%
grew only wheat. What is the population and the sample
size?
(1 mark)
Exercises
Answer 2
Population = 200 farms, Sample size = 50 farms
Exercises
Question 3
If you have to study the opinion of students about the
new economics textbook of class XI, what will be your
population and sample?
(1 mark)
Exercises
Answer 3
Population = Number of students studying economics in
class XI
Sample = Number of students selected whose opinion
about the new economics textbook of class XI is to be
taken.
Exercises
Question 4
If a researcher wants to estimate the average yield of
wheat in Punjab, what will be her/his population and
sample?
(1 mark)
Exercises
Answer 4
Population = Total number of farms which grows wheat
in Punjab
Sample = Number of farms surveyed
Exercises
Question 5
Which of the following methods give better results and
why?
(a) Census
(b) Sample
(3 marks)
Exercises
Answer 5
Census Method gives better results as it covers every
individual/unit belonging to the population. However, this
method would require huge expenditure, as a large num-
ber of enumerators have to be employed.
Therefore, in most cases sample surveys are preferred as
it can provide reasonably accurate information about the
population at a much lower cost and shorter time. As
samples are smaller than population, more detailed info-
rmation can be collected by conducting intensive enqui-
ries.
Exercises
Question 6
What do you think about the following questions? Do
you find any problem with these questions? Describe.
(i) How far do you live from the closest market?
(ii) If plastic bags are only 5 per cent of our garbage,
should it be banned?
(iii) Wouldn’t you be opposed to increase in price of p-
etrol?
(iv) • Do you agree with the use of chemical fertilisers?
• Do you use fertilisers in your fields?
• What is the yield per hectare in your field?
(6 marks)
Exercises
Answer 6
(i) The question is ambiguous.
The question should be precise and clear. It should
not be ambiguous. It should enable the respon-
dents to answer quickly, correctly and clearly. For
example:
Good Q: How far do you live from the closest
market?
(Tick mark the appropriate option)
(a) Less than 500 m
(b) Between 500 m and 1 km
Exercises
(c) More than 1 km
(ii) It is a leading question.
The question should not be a leading question, whi-
ch gives a clue about how the respondent should
answer. For example:
Good Q: Do you think the use of plastic bags sh-
ould be banned? (Yes or No)
(iii) This question comprises double negatives.
The question should not use double negatives. The
questions starting with “Wouldn’t you” or “Don’t
Exercises
you” should be avoided, as they may lead to biased
responses. For example:
Good Q: Do you think the increase in price of
petrol is justified ? (Yes or No)
(iv) The questions are not arranged in a logical order.
The questions should be arranged in a logical order
so that the respondent should feel comfortable.
The series of questions should move from general
to specific. For example:
Exercises
Good Q:
• What is the yield per hectare in your field?
• Do you use fertilisers in your fields?
• Do you agree with use of chemical fertilisers?
Exercises
Question 7
Give two examples each of sample, population and
variable.
(3 marks)
Exercises
Answer 7
Example 1: Suppose we are interested to know the
average weight of all the students in a school.
Population = Number of students in the school
Sample = Number of students selected for the survey
Variable = Weight of students
Example 2: Suppose we are interested to know the
average monthly expenditure of 200 families in a locality.
50 families were selected at random for the survey.
Population = 200 families
Sample = 50 families selected at random for the survey.
Variable = Monthly family expenditure.
Exercises
Question 8
Discuss how you would use the lottery method to select
3 students out of 10 in your class.
(3 marks)
Exercises
Answer 8
Lottery method to select 3 students out of 10 students
in a class:
Step 1: Names of all the 10 students should be written on
separate slips of paper of identical size and shape.
Step 2: These slips are then folded and placed in a bowl
and mixed thoroughly.
Step 3: An independent person (who is unbiased) will sel-
ect 3 slips successively at random.
Step 4: The 3 students whose names are appearing on
the 3 slips drawn, are considered as selected.
Exercises
Question 9
Explain the procedure of selecting a random sample of 3
students out of 10 in your class, by using random number
tables.
(3 marks)
Exercises
Answer 9
Procedure for selecting a random sample of 3 students
out of 10 students in the class, by using random number
tables:
Step 1: Assign a specific number from 1 to 10 to all the
10 students.
Step 2: We will select three numbers randomly.
Step 3: The 3 students, whose serial numbers are rand-
omly selected, are considered as selected.
Exercises
Question 10
Does the lottery method always give you a random
sample? Explain.
(3 marks)
Exercises
Answer 10
No, the lottery method may not always give a random
sample. If the slips prepared are not of identical size and
shape, and are drawn by a person who is biased or uses
his judgement to select the slips, the lottery method will
not give random sample.
However, the lottery method gives a random sample if it
is properly used without any bias. If the slips are pre-
pared of identical size and shape, and are drawn by an
independent person (who is unbiased), then each and
every slip has equal chance of being selected. In this case,
the lottery method will give a random sample.
Exercises
Question 11
Distinguish between ‘Primary Data’ and ‘Secondary Data’.
Give examples.
(4 marks)
Exercises
Question 12
Explain any six points which should be kept in mind while
preparing the questionnaire/interview schedule.
(6 marks)
Exercises
Question 13
Distinguish between ‘Closed-ended’ and ‘Open-ended’
questions with an example of each.
(3 marks)
Exercises
Question 14
Explain the three ways of collecting data.
(6 marks)
Exercises
Question 15
Explain ‘Personal Interviews’ method of collecting data
with advantages and disadvantages.
(4 marks)
Exercises
Question 16
Explain ‘Mailing Questionnaire’ method of collecting data
(4 marks)
Exercises
Question 17
Explain ‘Telephone Interview’ method of collecting data
(4 marks)
Exercises
Question 18
What is ‘Pilot Survey’? Explain its advantages.
(4 marks)
Exercises
Question 19
Distinguish between ‘Census’ and ‘Sample’ surveys with
an example of each.
(4 marks)
Exercises
Question 20
Explain the two main type of sampling.
(4 marks)
Exercises
Question 21
Distinguish between ‘Random Sampling’ and ‘Non-Random
Sampling’.
(4 marks)
Exercises
Question 22
Explain ‘Census of India’ and ‘National Sample Survey
organisation’ as important sources of secondary data.
(6 marks)
Exercises
Question 23
You want to do a research on the popularity of Vegetable
Atta Noodles among children. Design a suitable question-
naire for collecting this information.
(6 marks)
Exercises
Collection of Data
Time Allowed: 1 hr. Maximum Marks: 25

Question 1
Give the meaning of primary data. (1 mark)

Answer 1
The primary data are original data which are
collected for the first time by an investigator.

Question 2
What is ‘direct personal investigation’? (1 mark)

Answer 2
It is method of investigation in which data are coll-
ected personally by the investigator by asking qu-
estions.

Question 3
What is ‘random sampling’? (1 mark)

Answer 3
A method in which each item of the universe has
equal chance of being selected in the sample.

Question 4
The major limitation of mailing questionnaire is that
the respondents:
(a) do not answer the questions.
(b) do not read them carefully.
(c) do not send it back.

Answer 4

Question 5
Which is the most expensive method in term of time
money and efforts involved?
(a) Indirect oral investigation
(b) direct personal investigation
(c) information through questionnaires
(d) information from local sources

Answer 5
(d) information from local sources

Question 6
Which one of the following is not a major method of
data collection?
(a) Questionnaires
(b) Interviews
(c) by Secondary data

Answer 6
(d) All of the above are methods of data collection

Question 7
“Collection of primary data is more economic than
secondary data”.
(True/False) (1 mark)

Answer 7
False

Question 8
__________ is a person who helps the investigator
to collect data. (enumerators/questionnaire)
(Choose the correct option) (1 mark)

Answer 8
Enumerators

Question 9
Distinguish between Census method and Sampling
Method.
(3 marks)

Question 10
State any two merits and two demerits of Census
method.
(4 marks)

Question 11
Explain difference between the primary data and
the secondary data.
(4 marks)

Question 12
What is personal interviews? Enumerate any three
merits and demerits of personal interviews.
(6 marks)

Collection of Data

Question 1
Give the meaning of secondary data. (1 mark)

Answer 1
The data which have been collected for some other
purposes by some other agencies are called secon-
dary data.

Question 2
Define a ‘sample’. (1 mark)

Answer 2
A group of items taken from the population for
investigation and representative of all the items.

Question 3
Match the columns: (1 mark)
Column I Column II
(i) Census Method (A) Data obtained from published or
unpublished sources.
(ii) Sampling Method (B) Data is collected from each and
every element of the population.
(iii) Primary Data (C) Some representative items of a
population are selected for
analysis.
(iv) Secondary Data (D) Data collected by an investigator.

Answer 3
The errors that occur in acquiring, recording or
tabulating statistical data.

Question 4
What type of questions should not be included in a
questionnaire?
(a) Simple
(b) Multiple choice
(c) Personal
(d) Specific

Answer 4
(c) Personal

Question 5
Which one of these is not a method of data collect-
ion?
(a) Questionnaires
(b) Interviews
(c) Exchange
(d) Observations

Answer 5
(c) Exchange

Question 6
Primary data can be collect from:
(a) its source of origin
(b) agency
(c) website
(d) NSSO

Answer 6
(a) its source of origin

Question 7
Census method is suitable when area of Investigati-
on is very large.
(True/False) (1 mark)

Answer 7
False

Question 8
_________ is a group of items from universe which
represent characteristics of the universe.
(investigators/ sample)
(Choose the correct option) (1 mark)

Answer 8
Sample

Question 9
What is pilot survey ? Explain its importance.
(3 marks)

Question 10
Distinguish between Random Sampling and Non-
Random Sampling. Give an example of each.
(4 marks)

Question 11
What is a questionnaire? State any three qualities of
a good questionnaire.
(4 marks)

Question 12
Differentiate between the census method and the
sample method.
(6 marks)

Organisation of Data
 Meaning and types of variables

 Frequency Distribution.
3.1
Classification of Data
Classification brings order to raw data. The raw data is
classified in various ways depending on the purpose.
1. Chronological Classification
The raw data can be grouped according to time.
Such a classification is known as a Chronological
Classification.
In such a classification, data are classified either in as-
cending or in descending order with reference to time
such as years, quarters, months, weeks, etc.
The following example shows the population of India
classified in terms of years. The variable ‘population’ is
a Time Series as it depicts a series of values for diffe-
rent years.
Example:
Population of India (in crores)
Year Population (Crores)
1951 35.7
1961 43.8
1971 54.6
1981 68.4
1991 81.8
2001 102.7
2011 121.0
2. Spatial Classification
In Spatial Classification the data are classified with
reference to geographical locations such as countries,
states, cities, districts, etc.
Example:
Yield of Wheat for Different Countries (2013)
Country Yield of wheat (kg/hectare)
Canada 3594
China 5055
France 7254
Germany 7998
India 3154
Pakistan 2787
3. Qualitative Classification
There are certain characteristics that cannot be
expressed quantitatively. Such characteristics are
called Qualities or Attributes. For example, nation-
ality, literacy, religion, gender, marital status, etc. They
cannot be measured. Yet these attributes can be classi-
fied on the basis of either the presence or the absence
of a qualitative characteristic. Such a classification of
data on attributes is called a Qualitative Classification.
In the following example, we find population of a co-
untry is grouped on the basis of the qualitative vari-
able “gender”. An observation could either be a male or
a female. These two characteristics could be further
classified on the basis of marital status — married and
unmarried.
Example:
Population
Male Female
Married Unmarried Married Unmarried
4. Quantitative Classification
When the collected data of characteristics like height,
weight, age, income, marks of students, etc., are gr-
ouped into classes, it becomes a Quantitative Classifi-
cation.
Example: Frequency Distribution
of Marks in Mathematics of 100 Students
Marks Frequency
0–10 1
10–20 8
20–30 6
30–40 7
40–50 21
50–60 23
60–70 19
70–80 6
80–90 5
90–100 4
Total 100
 Top Tip
The above example shows the quantitative classification of marks in math-
ematics of 100 students given in Table 3.1.
Marks in Mathematics Obtained by 100 Students in
an Examination
47 45 10 60 51 56 66 100 49 40
60 59 56 55 62 48 59 55 51 41
42 69 64 66 50 59 57 65 62 50
64 30 37 75 17 56 20 14 55 90
62 51 55 14 25 34 90 49 56 54
70 47 49 82 40 82 60 85 65 66
49 44 64 69 70 48 12 28 55 65
49 40 25 41 71 80 0 56 14 22
66 53 46 70 43 61 59 12 30 35
45 44 57 76 82 39 32 14 90 25
3.2
Variables: Meaning
and Types
The term ‘variable’ refers to the characteristic that
varies in amount or magnitude, e.g. height, weig-
ht, marks of students, etc. of a class.
Variables differ on the basis of specific criterion. They
are broadly classified into two types: (i) Continuous
and (ii) Discrete.
1. Continuous Variable
A continuous variable is capable of manifesting in
every conceivable value and its values can also be
broken down into infinite gradations.
A continuous variable can take any numerical value.
It may take:
• Integral values (1, 2, 3, 4, ...)
• Fractional values (1/2, 2/3, 3/4, ...)
• Values that are not exact fractions ( 2 = 1.414,
3 = 1.732, …)
Example: The height of a student, as he/she grows say
from 90 cm to 150 cm, would take all the values in bet-
ween them. It can take values that are whole numbers
like 90cm, 100cm, 108cm, 150cm. It can also take frac-
tional values like 90.85 cm, 102.34 cm, 149.99 cm etc.
that are not whole numbers. Thus, the variable ‘height’
is capable of manifesting in every conceivable value
and its values can also be broken down into infinite
gradations.
 Top Tip
Other examples of a continuous variable are weight, time,
distance, etc.
2. Discrete Variable
A discrete variable can take only certain values.
Its value changes only by finite “jumps”. It “jumps” from
one value to another but does not take any intermedi-
ate value between them.
Example: A variable like the “number of students in a
class”, for different classes, would assume values that
are only whole numbers.
It cannot take any fractional value like 0.5 because
“half of a student” is absurd. Therefore, it cannot take
a value like 25.5 between 25 and 26. Instead its value
could have been either 25 or 26. What we observe is
that as its value changes from 25 to 26, the values in
between them — the fractions are not taken by it.
 Top Tip
We should not have the impression that a discrete variable
cannot take any fractional value. Suppose X is a variable th-
at takes values like 1/8, 1/ 16, 1/32, 1/64, ... Is it a discrete
variable? Yes, because though X takes fractional values it ca-
nnot take any value between two adjacent fractional values.
It changes or “jumps” from 1/ 8 to 1/16 and from 1/16 to
1/32. But it cannot take a value in between 1/8 and 1/16 or
between 1/16 and 1/32.
3.3
Frequency
Distribution
A frequency distribution is a comprehensive way
to classify raw data of a quantitative variable.
Example:
Marks in Mathematics Obtained by
100 Students in an Examination
47 45 10 60 51 56 66 100 49 40
60 59 56 55 62 48 59 55 51 41
42 69 64 66 50 59 57 65 62 50
64 30 37 75 17 56 20 14 55 90
62 51 55 14 25 34 90 49 56 54
70 47 49 82 40 82 60 85 65 66
49 44 64 69 70 48 12 28 55 65
49 40 25 41 71 80 0 56 14 22
66 53 46 70 43 61 59 12 30 35
45 44 57 76 82 39 32 14 90 25
Frequency Distribution
of Marks in Mathematics of 100 Students
Marks Frequency
0–10 1
10–20 8
20–30 6
30–40 7
40–50 21
50–60 23
60–70 19
70–80 6
80–90 5
90–100 4
Total 100
A frequency distribution shows how different values
of a variable (e.g. marks in mathematics scored by a
student) are distributed in different classes along with
their corresponding class frequencies.
In this case we have ten classes of marks: 0–10, 10–20,
…, 90–100.
The term Class Frequency means the number of
values in a particular class.
For example, in the class 30– 40 we find 7 values of m-
arks from raw data. They are 30, 37, 34, 30, 35, 39, 32.
The frequency of the class: 30–40 is thus 7.
 Top Tip
You might be wondering why 40–which is occurring twice in
the raw data – is not included in the class 30–40. Had it be-
en included the class frequency of 30–40 would have been
9 instead of 7. The puzzle would be clear to you if you are
patient enough to read this chapter carefully. So carry on.
You will find the answer yourself.
Each class in a frequency distribution table is bound-

ed by Class Limits.
Class limits are the two ends of a class. The lowest
value is called the Lower Class Limit and the hig-
hest value the Upper Class Limit. For example, the
class limits for the class: 60–70 are 60 and 70. Its lower
class limit is 60 and its upper class limit is 70.
Class Interval or Class Width or Class Size is the
difference between the upper class limit and the
lower class limit. For the class 60–70, the class inter-
7val is 10 (upper class limit minus lower class limit).
The Class Mid-Point or Class Mark is the middle
value of a class. It lies halfway between the lower cl-
ass limit and the upper class limit of a class and can be
ascertained in the following manner:
Upper Class Limit + Lower Class Limit
Class Mark = 2
For example,
Class Mark of the class 20–30 is :
 Note
The class mark or mid-value of each class is used to represe-
nt the class. Once raw data are grouped into classes, indiv-
idual observations are not used in further calculations. Inst-
ead, the class mark is used.
The Lower Class Limits, the Upper Class Limits
and the Class Mark
Lower Upper
Marks Frequency Class Mark
Class Limit Class Limit
0–10 1 0 10 5
10–20 8 10 20 15
20–30 6 20 30 25
30–40 7 30 40 35
40–50 21 40 50 45
50–60 23 50 60 55
60–70 19 60 70 65
70–80 6 70 80 75
80–90 5 80 90 85
90–100 4 90 100 95
3.4
Frequency Curve
Frequency Curve is a graphic or diagrammatic re-
presentation of a frequency distribution.
Fig. 3.1 shows the diagrammatic presentation of the fr-
equency distribution of the data in our example above.
To obtain the frequency curve we plot the class marks
on the X-axis and frequency on the Y-axis.
Class Mark Frequency
5 1
15 8
25 6
35 7
45 21
55 23
65 19
75 6
85 5
95 4
Fig. 3.1: Frequency Curve

3.5
How to Prepare a
Frequency Distribution?
While preparing a frequency distribution, the following five questions
need to be addressed:
1. Should we have equal or unequal sized class intervals?
2. How many classes should we have?
3. What should be the size of each class?
4. How should we determine the class limits?
5. How should we get the frequency for each class?
1. Should we have equal or unequal
sized class intervals?
There are two situations in which unequal sized inter-
vals are used.
First, when we have data on income and other similar
variables where the range is very high. For example,
income per day may range from nearly Zero to many
hundred crores of rupees. In such a situation, equal cl-
ass intervals are not suitable because:
(i) If the class intervals are of moderate size and equ-
al, there would be a large number of classes.
(ii) If class intervals are large, we would tend to sup-
press information on either very small levels or v-
ery high levels of income.
Second, if a large number of values are concentrated
in a small part of the range, equal class intervals would
lead to lack of information on many values.
 Note
In all other cases, equal sized class intervals are used in frequency
distributions.
2. How many classes should we have?

The number of classes is usually between 6 and 15.
In case, we are using equal sized class intervals, then
number of classes can be calculated by dividing the
range by the size of the class intervals.
Range is the difference between the largest and the
smallest values of variable.
Example:
47 45 10 60 51 56 66 100 49 40
60 59 56 55 62 48 59 55 51 41
42 69 64 66 50 59 57 65 62 50
64 30 37 75 17 56 20 14 55 90
62 51 55 14 25 34 90 49 56 54
70 47 49 82 40 82 60 85 65 66
49 44 64 69 70 48 12 28 55 65
49 40 25 41 71 80 0 56 14 22
66 53 46 70 43 61 59 12 30 35
45 44 57 76 82 39 32 14 90 25
Range of Marks = Highest Marks – Lowest Marks
= 100 – 0 = 100
Suppose, we want to prepare a frequency distribution
of marks of class size 10.
Therefore, number of classes =
3. What should be the size of each
class?
The answer to this question depends on the answer to
the previous question. Given the range of the variable,
we can determine the number of classes once we deci-
de the class interval.
Thus, we find that these two decisions are interlinked.
We cannot decide on one without deciding on the oth-
er.
In the previous example, we have the number of class-
es as 10. Given the value of range as 100, the class int-
ervals are automatically 10.
 Note
Here, we have chosen class intervals that are equal in mag-
nitude. However, we could have chosen class intervals that are
not of equal magnitude. In that case, the classes would have
been of unequal width.
4. How should we determine the class
limits?
Class limits should be definite and clearly stated. Gen-
erally, open-ended classes such as “70 and over” or “less
than 10” are not desirable.
The lower and upper class limits should be dete-
rmined in such a manner that frequencies of each
class tend to concentrate in the middle of the cla-
ss intervals.
Class intervals are of two types:
 Inclusive class intervals
In this case, values equal to the lower and upper li-
mits of a class are included in the frequency of that
same class. In other words, both the upper and the
lower class limits are included in the Inclusive Met-
hod. For example, 0-10, 11-20, 21-30 and so on.
 Exclusive class intervals
In this case, the value equal to either the upper or
the lower class limit is excluded from the frequency
of that class. In other words, either the upper class
limit or the lower class limit is excluded in the Exc-
lusive Method. For example, 0-10, 10-20, 20-30 and
so on.
 Top Tip
• In the case of discrete variables, both exclusive and inclusive
class intervals can be used.
• In the case of continuous variables, inclusive class intervals
are used very often.
Example of Discrete Variable
Suppose we have data on marks obtained by students
in a test and all the marks are in full numbers (fracti-
onal marks are not allowed).
Suppose the marks obtained by the students vary from
0 to 100. This is a case of a discrete variable since frac-
tional marks are not allowed.
In this case, if we are using equal sized class intervals
and decide to have 10 class intervals then the class int-
ervals can take either of the following forms:
Inclusive form of Exclusive form of
class intervals class intervals
Marks Marks
0–10 0–10
11–20 10–20
21–30 20–30
31–40 30–40
41–50 40–50
51–60 50–60
61–70 60–70
71–80 70–80
81–90 80–90
91–100 90–100
Total Total
In the case of exclusive class intervals, we have to decide in advance
what is to be done if we get a value equal to the value of a class limit.
For example, we could decide that values such as 10, 30 etc., should
be put into the class intervals “0-10” and “20-30” respectively. This
can be called the case of lower limit excluded.
Alternately, we could put the values 10, 30 etc., into the class intervals
“10-20” and “30-40” respectively. This can be called the case of upper
limit excluded.
Example of Continuous Variable
Suppose we have data on a variable such as height (ce-
ntimeters) or weight (kilograms). This data is of the co-
ntinuous type. In such cases, the class intervals may be
defined in the following manner:
 30 kg – 39.999 ... kg which is understood as 30 kg
and above and under 40 kg
 40 kg – 49.999 ... kg which is understood as 40 kg
and above and under 50 kg
 50 kg – 59.999 ... kg etc. which is understood as 50
kg and above and under 60 kg etc.
Adjustment in Class Interval in the case of
Inclusive Method
A close observation of the Inclusive Method in Table
3.4 would show that though the variable “income” is a
continuous variable, no such continuity is maintained
when the classes are made.
TABLE 3.4: Frequency Distribution of Incomes of
550 Employees of a Company
Income (`) Number of Employees
800–899 50
900–999 100
1000–1099 200
1100–1199 150
1200–1299 40
1300–1399 10
Total 550
We find “gap” or discontinuity between the upper

limit of a class and the lower limit of the next class. For
example, between the upper limit of the first class: 899
and the lower limit of the second class: 900, we find a
“gap” of 1.
Then how do we ensure the continuity of the vari-
able while classifying data? This is achieved by ma-
king an adjustment in the class interval. The adjust-
ent is done in the following way:
Step 1: Find the difference between the lower limit of
the second class and the upper limit of the first
class. For example, in Table 3.4 the lower limit
of the second class is 900 and the upper limit
of the first class is 899. The difference between
them is 1, i.e. 900 – 899 = 1.
Step 2: Divide the difference obtained in Step 1 by two,
i.e. 1/2 = 0.5.
Step 3: Subtract the value obtained in Step2 from lower
limits of all classes, i.e. lower class limit –0.5.
Step 4: Add the value obtained in Step 2 to upper lim-
its of all classes, i.e. upper class limit +0.5.
After the adjustment that restores continuity
of data in the frequency distribution, the Table
3.4 is modified into Table 3.5.
TABLE 3.5: Frequency Distribution of Incomes of
550 Employees of a Company
Income (`) Number of Employees
799.5–899.5 50
899.5–999.5 100
999.5–1099.5 200
1099.5–1199.5 150
1199.5–1299.5 40
1299.5–1399.5 10
Total 550
 Note
After the adjustments in class limits, Adjusted Class Mark
=
5. How should we get the frequency for
each class?
Frequency of an observation means how many tim-
es that observation occurs in the raw data.
Example:
47 45 10 60 51 56 66 100 49 40
60 59 56 55 62 48 59 55 51 41
42 69 64 66 50 59 57 65 62 50
64 30 37 75 17 56 20 14 55 90
62 51 55 14 25 34 90 49 56 54
70 47 49 82 40 82 60 85 65 66
49 44 64 69 70 48 12 28 55 65
49 40 25 41 71 80 0 56 14 22
66 53 46 70 43 61 59 12 30 35
45 44 57 76 82 39 32 14 90 25
In the above table, we observe that the value 40 occurs

thrice; 0 and 10 occur only once; 49 occurs five times
and so on. Thus, the frequency of 40 is 3, 0 is 1, 10 is 1,
49 is 5 and so on.
The counting of class frequency is done by tally marks
against the particular class.
Finding class frequency by tally marking (Exclusive
form of class interval – Upper limit excluded)
A tally (/) is put against a class for each student whose
marks are included in that class. For example, if the
marks obtained by a student are 57, we put a tally (/)
against class 50–60.
If the marks are 71, a tally is put against the class 70–
80.
If someone obtains 40 marks, a tally is put against the
class 40–50.
Table 3.6 shows the tally marking of marks of 100 stu-
dents in mathematics.
TABLE 3.6: Tally Marking of Marks of 100
Students in Mathematics
Tally Frequen Class
Marks Observations
Mark cy Mark
0–10 0 / 1 5
10–20 10, 14, 17, 12, 14, 12, 14, 14 //// /// 8 15
20–30 25, 25, 20, 22, 25, 28 //// / 6 25
30–40 30, 37, 34, 39, 32, 30, 35 //// // 7 35
40–50 47, 42, 49, 49, 45, 45, 47, //// //// 21 45
44, 40, 44, 49, 46, 41, 40, //// ////
43, 48, 48, 49, 49, 40, 41 /
50–60 59, 51, 53, 56, 55, 57, 55, 51, //// //// 23 55
50, 56, 59, 56, 59, 57, 59, //// ////
55, 56, 51, 55, 56, 55, 50, 54 ///
60–70 60, 64, 62, 66, 69, 64, 64, //// //// 19 65
60, 66, 69, 62, 61, 66, 60, //// ////
65, 62, 65, 66, 65
70–80 70, 75, 70, 76, 70, 71 //// / 6 75
80–90 82, 82, 82, 80, 85 //// 5 85
90–100 90, 100, 90, 90 //// 4 95
Total 100
The counting of tally is made easier when four of them
are put as //// and the fifth tally is placed across them
as ////.
//// Tallies are then counted as groups of five. So if
there are 16 tallies in a class, we put them as ////
//// ////
////
//// / for the sake of convenience.
Thus, frequency in a class is equal to the number
of tallies against that class.
Loss of Information
The classification of data as a frequency distribution
has an inherent shortcoming. While it summarises the
raw data making it concise and comprehensible, it
does not show the details that are found in raw data.
There is a loss of information in classifying raw data
though much is gained by summarising it as a classi-
fied data.
Once the data are grouped into classes, an indi-
vidual observation has no significance in further
statistical calculations.
In Table 3.6, the class 20–30 contains 6 observations:
25, 25, 20, 22, 25 and 28.
So when these data are grouped as a class 20–30 in the
frequency distribution, the latter provides only the nu-
mber of records in that class (i.e., frequency = 6) but
not their actual values. All values in this class are assu-
med to be equal to the middle value of the class interv-
al or class mark (i.e. 25).
Further statistical calculations are based only on
the values of class mark and not on the values of
the observations in that class. This is true for other
classes as well. Thus, the use of class mark instead of
the actual values of the observations in statistical me-
thods involves considerable loss of information.
Frequency distribution with unequal
classes
By now you are familiar with frequency distributions of
equal class intervals. You know how they are construc-
ted out of raw data. But in some cases frequency distr-
ibutions with unequal class intervals are more approp-
riate.
If you observe the frequency distribution in Table 3.6,
you will notice that most of the observations are conc-
entrated in classes 40–50, 50–60 and 60–70. Their res-
pective frequencies are 21, 23 and 19. It means that out
of 100 students, 63 (21 + 23 + 19) students are conce-
ntrated in these classes. Thus, 63 per cent are in the
middle range of 40–70. The remaining 37 per cent of d-
ata are in classes 0–10, 10–20, 20–30, 30–40, 70–80, 80–
90 and 90–100. These classes are sparsely populated
with observations.
Further you will also notice that observations in these
classes deviate more from their respective class marks
than in comparison to those in other classes. But if
classes are to be formed in such a way that class marks
coincide, as far as possible, to a value around which
the observations in a class tend to concentrate, then
unequal class interval is more appropriate.
 Top Tip
In a Frequency Distribution, further statistical calculations
are based only on the class mark values, instead of values of
the observations. Therefore, the classes should be formed
in such a way that the class mark of each class comes as clo-
se as possible, to a value around which the observations in
a class tend to concentrate.
Table 3.7 shows the same frequency distribution of
Table 3.6 in terms of unequal classes.
TABLE 3.7: Frequency Distribution of
Unequal Classes
Marks Observations Frequency Class Mark
0–10 0 1 5
10–20 10, 14, 17, 12, 14, 12, 14, 14 8 15
20–30 25, 25, 20, 22, 25, 28 6 25
30–40 30, 37, 34, 39, 32, 30, 35, 7 35
40–45 42, 44, 40, 44, 41, 40, 43, 40, 9 42.5
41
45–50 47, 49, 49, 45, 45, 47, 49, 46, 12 47.5
48, 48, 49, 49
50–55 51, 53, 51, 50, 51, 50, 54 7 52.5
55–60 59, 56, 55, 57, 55, 56, 59, 56, 16 57.5
59, 57, 59, 55, 56, 55, 56, 55
60–65 60, 64, 62, 64, 64, 60, 62, 61, 10 62.5
60, 62,
65–70 66, 69, 66, 69, 66, 65, 65, 66, 9 67.5
65
70–80 70, 75, 70, 76, 70, 71 6 75
80–90 82, 82, 82, 80, 85 5 85
90–100 90, 100, 90, 90 4 95
Total 100
Each of the classes 40–50, 50–60 and 60–70 are split

into two class.
40–50 is divided into 40–45 and 45–50.
The class 50–60 is divided into 50– 55 and 55–60.
And class 60–70 is divided into 60–65 and 65–70.
The new classes 40–45, 45–50, 50–55, 55–60, 60–65
and 65–70 have class interval of 5.
The other classes: 0–10, 10–20, 20–30, 30–40, 70– 80,
80–90 and 90–100 retain their old class interval of 10.
The last column of this table shows the new values of
class marks for these classes. Compare them with the
old values of class marks in Table 3.6.
Notice that the observations in these classes deviated
more from their old class mark values than their new
class mark values.
Thus, the new class mark values are more representa-
tive of the data in these classes than the old values.
Figure 3.2 shows the frequency curve of the distrib-
ution in Table 3.7. The class marks of the table are
plotted on X-axis and the frequencies are plotted on Y-
axis.
Fig. 3.2: Frequency Curve

3.6
Frequency Array
For a discrete variable, the classification of its data
is known as a Frequency Array. Since a discrete va-
riable takes only certain values and not intermediate
fractional values between two integral values, we have
frequencies that correspond to each of its integral val-
ues. The example in Table 3.8 illustrates a Frequency
Array.
Table 3.8: Frequency Array of the Size of
Households
Size of the Number of Household Households
1 5
2 15
3 25
4 35
5 10
6 5
7 3
8 2
Total 100
The variable “size of the household” is a discrete variab-

le that only takes integral values as shown in Table 3.8.
3.7
Frequency Array
In this chapter we have so far described frequency di-
stributions involving one variable only.
A frequency distribution involving one variable
only is called univariate frequency distribution.
In many situations, simultaneous study of two variables
becomes necessary. For example, we want to classify d-
ata relating to age of husbands and age of wives or data
relating to marks in Statistics and Indian Econ-omic
Development or height and weight of students.
The data classified on the basis of two variables
give rise to what is called a bivariate frequency d-
istribution.
Definition
 A Bivariate Frequency Distribution can be defined as the
frequency distribution of two variables.
Example: Suppose we take a sample of 20 companies

from the list of companies based in a city. Suppose th-
at we collect information on sales and expenditure on
advertisements from each company.
In this case, we have bivariate sample data. Such bivar-
iate data can be summarised using a Bivariate Freque-
ncy Distribution.
Table 3.9 shows the frequency distribution of the two
variables, sales (in `lakh) and advertisement expendit-
ure (in `thousand) of 20 companies.
The values of sales are classed in different columns an-
d the values of advertisement expenditure are classed
in different rows.
Each cell shows the frequency of the corresponding
row and column values. For example, there are 3 firms
whose sales are between `135 and `145 lakh and their
advertisement expenditures are between `64 and `66
thousand.
TABLE 3.9: Bivariate Frequency Distribution
Showing Sales (in ` lakh) and Advertisement
Expenditure (in ` thousand) of 20 Companies
A Bivariate Frequency Distribution is also called
Correlation Table
A bivariate frequency distribution is used to calculate correlation
between the two variables (which we will discuss in Chapter 7).
That is why a bivariate frequency distribution is also called corr-
elation table.
Illustrations
Illustration 1: In a survey of 35 families in a villa-

ge, the number of children per family was recor-
ded and the following data obtained:
1 0 2 3 4 5 6
7 2 2 4 0 2 5
8 4 5 12 6 3 2
7 6 5 3 3 7 8
9 7 9 4 5 4 3
Represent the data in the form of a discrete fre-
quency distribution, i.e. a frequency array.
Solution:
Frequency Array of the Number of Children
No. of Children Tally Mark Frequency
0 // 2
1 / 1
2 //// 4
3 //// / 6
4 //// 5
5 //// 5
6 /// 3
7 //// 4
8 // 2
9 // 2
10 – 0
11 – 0
12 / 1
Total 35
Illustration 2: Prepare a frequency distribution
for the following observations:
15 45 40 42 50 60 62 68 70 42
75 75 80 81 25 26 31 32 78 45
31 45 42 43 55 56 78 80 81 62
60 62 58 69 70 45 50 56 72 58
75 62 62 65 60 70 35 37 40 55
Solution: Since the lowest value is 15 and the largest
81, Range = 81 – 15 = 66.
The appropriate class interval shall be 10 because 7 cl-
asses would be formed by taking 10 as class interval.
Variable Tally Mark Frequency
15–25 / 1
25–35 //// 5
35–45 //// /// 8
45–55 //// / 6
55–65 //// //// //// 14
65–75 //// // 7
75–85 //// //// 9
Total 50
Illustration 3: Classify the following data by tak-
ing class interval such that their class marks are
17, 22, 27, 32 and so on.
30 42 30 54 40 48 15 17 51 42
25 41 30 27 42 36 28 26 37 54
44 31 36 40 36 22 30 31 19 48
16 42 32 21 22 46 33 41 21
Solution: Since we have to classify the data in such a
manner that the class marks are 17, 22 27 etc. the
first class should be 15-19 (class mark = ) ,
second class 20-24 etc.
15-19 //// 4
20–24 //// 4
25–29 //// 4
30–34 //// /// 8
35–39 //// 4
40–44 //// //// 9
45–49 /// 3
50-54 /// 3
Total 39
Illustration 4: For the following raw data prep-
are a frequency distribution with the starting
class as 5-9 and all classes with the same width 5.
Marks in Statistics
12 36 40 16 10 10 19 20 28 30
19 27 15 21 33 45 7 19 20 26
26 37 6 5 20 30 37 17 11 20
Solution:
5-9 /// 3
10–14 //// 4
15–19 //// / 6
20–24 //// 5
25–29 //// 4
30–34 /// 3
35–39 /// 3
40-44 / 1
45-50 / 1
Total 30
Illustration 5: The marks obtained by 25 stude-
nts in Economics and Mathematics are given
below. The first figure in brackets indicates the
marks in Economics and the second marks in
Mathematics:
(14, 12 ), (0, 2), (1, 5), (7, 3), (15, 9), (2, 8), (12, 18),
(9, 11), (5, 3), (17, 13), (19, 18), (11, 7), (10, 13), (13,
16), (16, 14), (6, 10), (4, 1), (11, 14), (8, 3), (9, 14),
(13, 11), (14, 17), (0, 10), (11, 7), (15, 15).
Prepare a bivariate frequency distrbution taki-
ng the class interval as 4 marks, the first being
equal to 0 and less than 4.
Solution:
A bivariate frequency distribution
showing marks obtained by 25 students in
Economics and Mathematics
Illustration 6: Use the data in the following table
that relate to monthly household expenditure (in
`) on food of 50 households.
Monthly Household Expenditure (in Rupees)
on Food of 50 Households
1904 1559 3473 1735 2760
2041 1612 1753 1855 4439
5090 1085 1823 2346 1523
1211 1360 1110 2152 1183
1218 1315 1105 2628 2712
4248 1812 1264 1183 1171
1007 1180 1953 1137 2048
2025 1583 1324 2621 3676
1397 1832 1962 2177 2575
1293 1365 1146 3222 1396
(i) Obtain the range of monthly household ex-

penditure on food.
(ii) Divide the range into appropriate number
of class intervals and obtain frequency dis-
tribution of expenditure.
(iii) Find the number of households whose mo-
nthly expenditure on food is (a) less than `
2000 (b) more than ` 3000
Solution:
(i) The range of monthly household expenditure on
food = Largest expenditure – Smallest expend-
iture = 5090 –1007 = `4083
(ii) Frequency Distribution
Monthly expenditure Tally Mark Frequency
1000-1200 //// //// 10
1200–1400 //// //// 10
1400–1600 /// 3
1600–1800 /// 3
1800–2000 //// // 7
2000–2500 //// / 6
2500–3000 //// 5
3000–3500 // 2
3500–4000 / 1
4000–4500 // 2
4500-5000 – 0
5000-5500 / 1
Total 50
(iii) (a) 10 + 10 + 3 + 3 + 7 = 33 families have monthly

expenditure less than `2000.
(b) 2 + 1 + 2 + 0 + 1 = 6 families have monthly
expenditure more than `3000.
Illustration 7: Prepare ‘less than’ and ‘more th-
an’ cumulative frequency distribution of marks
obtained out of 100 marks in Mathematics by 64
Students of Class XI.
Marks No. of Students

0–20 6
20–40 5
40-60 33
60–80 14
80–100 6
Solution:
Frequency distribution of marks obtained
in mathematics
Question 1
The class midpoint is equal to:
(a) The average of the upper class limit and the lower
class limit.
(b) The product of upper class limit and the lower class
limit.
(c) The ratio of the upper class limit and the lower class
limit.
(d) None of the above.
Answer 1
(a) The average of the upper class limit and the lower
class limit.

Question 2
The frequency distribution of two variables is known as:
(a) Univariate Distribution
(b) Bivariate Distribution
(c) Multivariate Distribution
(d) None of these

Answer 2
(b) Bivariate Distribution

Question 3
Statistical calculations in classified data are based on:
(a) the actual values of observations
(b) the upper class limits
(c) the lower class limits
(d) the class midpoints

Answer 3
(d) the class midpoints

Question 4
Range is the:
(a) difference between the largest and the smallest
observations
(b) difference between the smallest and the largest
observations
(c) average of the largest and the smallest observations
(d) ratio of the largest to the smallest observation

Answer 4
(a) difference between the largest and the smallest
observations

Question 5
The unclassified data which are highly disorganised are
called __________. Fill in the blank.

Answer 5
raw data

Question 6
The purpose of classifying raw data is to bring order in
them so that they can be subjected to further _______
easily. Fill in the blank.

Answer 6
statistical analysis

Question 7
To draw meaningful conclusions from raw data is a tedi-
ous task because:
(a) They are highly disorganised.
(b) They are often very large and cumbersome to
handle.
(c) They do not yield to statistical methods easily.

Answer 7

Question 8
After collecting data the next step is to ______ and
present them in a classified form.

Answer 8
organise

Question 9
The raw data are summarised and made comprehensible
by___________ . It brings order to raw data.

Answer 9
classification

Question 10
The raw data can be grouped according to time. Such a
classification is known as a __________ .
(a) Chronological Classification
(b) Spatial Classification
(c) Qualitative Classification
(d) Quantitative Classification

Answer 10
(a) Chronological Classification

Question 11
In _____________ the data are classified with reference
to geographical locations such as countries, states, cities,
districts, etc.

Answer 11
Spatial Classification

Question 12
A ________ variable is capable of manifesting in every
conceivable value and its values can also be broken do-
wn into infinite gradations.

Answer 12
continuous

Question 13
A variable like the “number of students in a class” is a
_____ variable.

Answer 13
discrete

Question 14
The height of a student is a _____ variable.

Answer 14
continuous

Question 15
A discrete variable cannot take any fractional value.
True/False? Give reason.

Answer 15
False: A discrete variable can also take fractional values.
Suppose X is a variable that takes values like 1/8, 1/ 16,
1/32, 1/64, ... It is a discrete variable sbecause though X
takes fractional values it cannot take any value between
two adjacent fractional values. It changes or “jumps”
from 1/ 8 to 1/16 and from 1/16 to 1/32. But it cannot
take a value in between 1/8 and 1/16 or between 1/16
and 1/32.

Question 16
A _____ is a comprehensive way to classify raw data
of a quantitative variable.

Answer 16
frequency distribution

Question 17
_________ means the number of values in a particular
class.
(a) Class limits
(b) Class Frequency
(c) Class intervals
(d) Class mark

Answer 17
(b) Class Frequency

Question 18
____________ is the middle value of a class.
(a) Class limits
(b) Class Frequency
(c) Class intervals
(d) Class mark

Answer 18
(d) Class mark

Question 19
________ is a graphic or diagrammatic representation
of a frequency distribution.

Answer 19
Frequency Curve

Question 20
If a large number of values are concentrated in a small
part of the range, _____________ are suitable.
(a) equal class intervals
(b) unequal class intervals
(c) inclusive frequency distributions
(d) None of these

Answer 20
(b) unequal class intervals

Question 21
The number of classes is usually between _________.
(a) five and ten
(b) six and fifteen
(c) six and ten
(d) None of these

Answer 21
(b) six and fifteen

Question 22
In case, we are using equal sized class intervals, then nu-
mber of classes can be calculated by dividing the _____
by the size of the class intervals.

Answer 22
range

Question 23
Given the range of the variable, we can determine the
_____________ once we decide the class interval.

Answer 23
number of classes

Question 24
Class limits should be definite and clearly stated.
Generally, __________ classes are not desirable.

Answer 24
open-ended (such as “70 and over” or “less than 10”)

Question 25
The lower and upper class limits should be determined in
such a manner that ____________ of each class tend to
concentrate in the middle of the class intervals.

Answer 25
frequency

Question 26
In the case of ____________ variables, both exclusive
and inclusive class intervals can be used. In the case of
_________ variables, inclusive class intervals are used
very often.

Answer 26
discrete, continuous

Question 27
Both the upper and the lower class limits are included in
the _____________ Method of class intervals.

Answer 27
Inclusive

Question 28
In the case of exclusive class intervals, upper limit is not
included.
True / False? Give reason.

Answer 28
False: In the case of exclusive class intervals, we have to
decide in advance which class limit is to be excluded. For
example we could decide that values such as 10, 30 etc.,
should be put into the class intervals “0-10” and “20-30”
respectively. This can be called the case of lower limit
excluded. Alternately, we could put the values 10, 30 etc.,
into the class intervals “10-20” and “30-40” respectively.
This can be called the case of upper limit excluded.

Question 29
In the case of inclusive method, we find ____ between
the upper limit of a class and the lower limit of the next
class. We ensure the continuity of the variable by maki-
ng an adjustment in the class interval. After the adjust-
ents in class limits,Adjusted Class Mark = ________ .

Answer 29
“gap” or discontinuity,

Question 30
The counting of class frequency is done by _________
against the particular class.

Answer 30
tally marks

Question 31
_______________ in a class is equal to the number of
tallies against that class.

Answer 31
Frequency

Question 32
Once the data are grouped into classes, an ________
has no significance in further statistical calculations. Fur-
ther statistical calculations are based only on the values
of __________.

Answer 32
individual observation, class mark

Question 33
The use of class mark instead of the actual values of the
observations in statistical methods involves considerable
_____________ .

Answer 33
loss of information

Question 34
In a Frequency Distribution, further statistical calculatio-
ns are based only on the class mark values, instead of
values of the observations. Therefore, the classes should
be formed in such a way that the _______ of each class
comes as close as possible, to a value around which the
observations in a class tend to concentrate.
(a) class limits
(b) class interval
(c) class mark
(d) None of these Objective Type Questions
Answer 34
(c) class mark

Question 35
The frequency curve of a frequency distribution with
_______ class intervals is taller than the frequency
curve of a frequency distribution with ___________
class intervals.

Answer 35
equal, unequal

Question 36
For a discrete variable, the classification of its data is kn-
own as a ________ .
(a) Frequency Array
(b) Univariate frequency distribution
(c) Bivariate frequency distribution
(d) None of these

Answer 36
(a) Frequency Array

Question 37
A ____________ can be defined as the frequency
distribution of two variables.

Answer 37
Bivariate Frequency Distribution

Question 38
A bivariate frequency distribution is used to calculate
_________ between the two variables.

Answer 38
correlation

Question 39
An attribute is:
(a) A qualitative characteristic
(b) A quantitative characteristic
(c) A measurable characteristic
(d) All of these

Answer 39
(a) A qualitative characteristic

Question 40
Annual income of a person is:
(a) An attribute
(b) A discrete variable
(c) A continuous variable
(d) Either (b) or (c)

Answer 40

Question 41
Marks of a student is an example of:
(a) An attribute
(d) None of these

Answer 41

Question 42
Nationality of a student is:
(a) An attribute
(d) Either (a) or (c)

Answer 42
(a) An attribute

Question 43
Drinking habit of a person is:
(a) An attribute
(b) A variable
(c) A discrete variable
(d) A continuous variable.

Answer 43
(a) An attribute

Question 44
Age of a person is:
(a) An attribute
(d) A variable

Answer 44

Question 45
The difference between the upper class limit and lower
class limit is called:
(a) Class Width
(b) Class Size
(c) Range

Answer 45

Question 46
For a particular class boundary, the less than cumulative
frequency and more than cumulative frequency add up
to:
(a) Total frequency
(b) Adjusted Frequency
(d) None of these.

Answer 46
(a) Total frequency

Question 47
Tally marks determines:
(a) class width
(b) class boundary
(c) class limit
(d) class frequency

Answer 47
(d) class frequency

Question 48
Cumulative Frequency Distribution is a:
(a) graph
(b) frequency
(c) statistical table
(d) distribution

Answer 48
(c) statistical table

Question 49
To find the number of observations less than any given
value, _____ is used.
(a) Simple frequency distribution
(b) Bivariate frequency distribution
(c) Cumulative frequency distribution
(d) None of these

Answer 49
(c) Cumulative frequency distribution

Question 50
The number of observations falling within a class is
called _______.
(a) density
(b) frequency
(d) None of these

Answer 50
(b) frequency

Question 51
Classes with zero frequencies are called _______.
(a) nil class
(b) empty class
(c) class
(d) None of these

Answer 51
(b) empty class

Question 52
The value exactly at the middle of a class interval is
called ___________.
(a) class mark
(b) mid value
(d) None of these

Answer 52

Question 53
Difference between the lower and the upper class limits
is ___________.
(a) class width
(b) class size
(c) class interval
(d) All of these

Answer 53
(d) All of these

Question 54
In the construction of a frequency distribution, it is
generally preferable to have classes of:
(a) equal class width
(b) unequal class width
(c) maximum class width
(d) None of these

Answer 54
(a) equal class width

Question 55
In an inclusive series, upper limit of any class is ______
from the lower limit of the next class.
(a) same
(b) different
(d) None of these

Answer 55
(b) different

Question 56
In an exclusive series, upper limit of any class coincides
with the lower limit of the next class. (True/False)

Answer 56
True

Question 57
Except the first and the last, all other class limits lie midway
between the upper limit of a class and the lower limit of
the next higher class. (True/False)

Answer 57
True

Question 58
The lower extreme point of a class is called _______.
Fill up the blank.

Answer 58
Lower class limit

Question 59
When one end of a class is not specified, the class is
called _______. Fill up the blank.

Answer 59
Open-end class

Question 60
Difference between the maximum and minimum value
of a given data is called _______.
(a) Class width
(b) Class size
(c) Range
(d) None of these

Answer 60
(c) Range

Question 61
For the overlapping classes 0–10 , 10–20 , 20–30 etc. the
class mark of the class 0–10 is:
(a) 5
(b) 0
(c) 10
(d) None of these

Answer 61
(a) 5

Question 62
In the construction of a frequency distribution, it is
generally preferable to have classes of:
(a) four
(b) three
(c) two
(d) five

Answer 62
(a) four


Question 1
What is variable? (1 mark)

Question 2
Give the meaning of mid-value. (1 mark)

Question 3
Choose the correct statement about inclusive series:
(a) Value of upper limit is included in the same
class interval.
(b) Value of lower limit is included in the previous
class interval
(c) Value of upper limit of one class interval is the
lower limit of next class interval.
(d) It is also known as open end series
Question 4
Choose the correct match: (1 mark)
(a) Frequency Distribution ⇒ Individual series
(b) Frequency Array ⇒ Discrete series
(c) Mid Value ⇒ (Upper limit –
Lower limit)/2
(d) Class Interval ⇒ (Lower limit +
Upper limit)/2

Question 5
From the following frequency distribution, calculate
the number of students who scored marks between
70–75:
(1 mark)

Question 6
The number of times an item repeats itself in the
series is known as__________.
(Fill up the blank) (1 mark)

Question 7
What is ‘loss of information’ in classified data?
(3 marks)

Question 8
Define the following: (4 marks)
(i) Class interval
(ii) Class frequency
(iii) Mid-point
(iv) Range

Question 9
From the following frequency distribution prepare
‘less than’ and ‘more than’ cumulative frequency
distribution:
(4 marks)

Question 10
Discuss the different methods of classification of
data.
(4 marks)

Question 11
Prepare a frequency distribution by inclusive method
taking class interval of 7 from the following data:
(4 marks)


Question 1
Define frequency array. (1 mark)

Question 2
Define class-interval. (1 mark)

Question 3
An open end series in that series in which:
(1 mark)
(a) lower limit of the first class interval is missing.
(b) upper limit of the last class interval is missing.
(c) in which frequency of the last class interval is
missing.

Question 4
What is the class size and mid value of class interval
“20–40”?
(1 mark)

Question 5
_______ is the difference between the largest and
smallest observation. (1 mark)

Question 4

Question 7
What is a variable? Distinguish between discrete
and continuous variables.
(3 marks)

Question 8
From the following data relating to wages of 30
workers, prepare frequency distribution with class
interval as 45-55, 55-65 etc?
10, 15, 25, 27, 29, 20, 24, 23, 22, 12, 14, 16, 17,
18, 16, 15, 5, 9
(3 marks)

Question 9
Distinguish between exclusive and inclusive methods
with an example of each.
(3 marks)

Question 10
Define frequency distribution. Distinguish between
Univariate and Bivariate Frequency Distributioin.
Give an example of each.
(4 marks)

Question 11
Explain the following with an example of each:
(6 marks)
(i) Individual series
(ii) Discrete series (Frequency array)
(iii) Continuous series frequency distribution

Presentation of Data
 Tabular Presentation and Diagrammatic Presentation of Data:

(i) Geometric forms (bar diagrams and pie diagrams), (ii)
Frequency diagrams (histogram, polygon and Ogive) and (iii)
Arithmetic line graphs (time series graph).
4.1
Tabular Presentation of
Data
In a tabular presentation, data are presented in rows
(read horizontally) and columns (read vertically).
For example, see Table 4.1 tabulating information
about literacy rates.
Sex Location Total
Rural Urban
Male 79 90 82
Female 59 90 65
Total 68 84 74
Source: Census of India 2011. (Literacy rates relate to

population aged 7 years and above)
The Table 4.1 has three rows (for male, female and
total) and three columns (for rural, urban and total). It
is called a 3 × 3 Table giving 9 items of information in 9
boxes called the “cells” of the Table. Each cell gives
information that relates an attribute of gender (“male”,
“female” or total) with a number (literacy percentages of
rural people, urban people and total).
Advantages of Tabular Presentation of Data

1. Simple and Brief Presentation
2. Easy Analysis
3. Facilitates Comparison
4. Economical
5. Highlights Characteristics of Data
 The most important advantage of tabulation is that it

organises data for further statistical treatment and
decision-making.
 For large quantity of data, tabular presentation helps in
accommodating any volume of data for one or more
variables.
Classification used in tabulation
Classification used in tabulation is of four kinds:
(i) Qualitative
(ii) Quantitative
(iii) Temporal and
(iv) Spatial.
1. Qualitative classification
When classification is done according to attributes,
such as social status, physical status, nationality,
etc., it is called qualitative classification. For
example, in Table 4.1 the attributes for classification
are sex and location which are qualitative in nature.
2. Quantitative classification
In quantitative classification, the data are classified
on the basis of characteristics which are quantitative
in nature. In other words, these characteristics can
be measured quantitatively. For example, age,
height, production, income, etc. are quantitative
characteristics. Classes are formed by assigning class
limits for the values of the characteristic under
consideration. An example of quantitative classification
is given in Table 4.2.
TABLE 4.2: Distribution of 542 respondents by
their age in an election study in Bihar
Here, classifying characteristic is ‘age’ in years and is

quantifiable.
Extra Shots
Difference between Quantitative and Qualitative Data
Quantitative Data Qualitative Data

• Can be expressed • Can be ranked only
numerically
• Further calculation is • Further calculation is not
possible possible
• E.g. Income , Expenditure • E.g. Intelligence, Beauty
etc. etc.
3. Temporal classification
In this classification ‘time’ becomes the classifying
variable and data are categorised according to time.
Time may be in hours, days, weeks, months, years, etc.
For example, see Table 4.3.
TABLE 4.3: Yearly sales of a firm from 2013 to 2018
In this table the classifying characteristic is ‘sales in a

year’ and takes values in the scale of time.
4. Spatial classification
When classification is done on the basis of place, it
is called spatial classification. The place may be a
village/town, block, district, state, country, etc.
Table 4.4 is an example of spatial classification.
TABLE 4.4 Export from India to rest of the world in
2013-14 as share of total export (per cent)
(Total Exports: US $314.40 billion)

Tabulation of Data and Parts of a Table
To construct a table, it is important to learn first what
are the parts of a good statistical table. When put
together systematically these parts form a table.
The most simple way of conceptualising a table is to
present the data in rows and columns alongwith some
explanatory notes.
Tabulation can be done using one-way, two-way or
three-way classification depending upon the number
of characteristics involved.
A good table should essentially have the following:
1. Table Number
Table number is assigned to a table for identification
purpose. It is given at the top or at the beginning of
the title of the table.
If more than one table is presented, it is the table
number that distinguishes one table from another.
Generally, table numbers are whole numbers in
ascending order if there are many tables in a book.
Subscripted numbers, like 1.2, 3.1, etc., are also used for
identifying the table according to its location. For
example, Table 4.5 should be read as the fifth table of
the fourth chapter, and so on.
2. Title
The title of a table narrates about the contents of
the table. It has to be clear, brief and carefully worded
so that the interpretations made from the table are
clear and free from ambiguity.
It finds place at the head of the table succeeding the
table number or just below it (See Table 4.5).
3. Captions or Column Headings
At the top of each column in a table, a column
designation is given to explain figures of the column.
This is called caption or column heading (See Table
4.5).
4. Stubs or Row Headings
Like a caption or column heading, each row of the table
has to be given a heading. The designations of the rows
are also called stubs or stub items, and the complete
left column is known as stub column.
A brief description of the row headings may also be
given at the left hand top in the table. (See Table 4.5).
5. Body of the Table
Body of a table is the main part and it contains the
actual data.
Location of any one figure/data in the table is fixed and
determined by the row and column of the table.
For example, data in the second row and fourth column
indicate that 25 crore females in rural India were non-
workers in 2001 (See Table 4.5).
6. Unit of Measurement
The unit of measurement of the figures in the table
(actual data) should always be stated along with the
title.
If different units are there for rows or columns of the
table, these units must be stated along with ‘stubs’ or
‘captions’.
If figures are large, they should be rounded up and the
method of rounding should be indicated. (See Table
4.5).
7. Source:
It is a brief statement or phrase indicating the source of
data presented in the table. If more than one source is
there, all the sources are to be written in the source.
Source is generally written at the bottom of the table.
(See Table 4.5).
8. Note:
Note is the last part of the table. It explains the specific
feature of the data content of the table which is not
self-explanatory and has not been explained earlier.
Ilustration 1
Of the 1,125 students studying in a school during 2019-

20, 720 are Hindus, 628 are boys and 440 are science
students. Number of Hindu boys is 392, that of boys
studying science is 205 and that of Hindu students
studying science is 262. Finally, the number of science
students among the Hindu boys is 148. Tabulate the
above data. (4 marks)
Solution:
School students by religion and faculty 2019-20
Ilustration 2
In a sample study about the tea-drinking habit of two

cities A and B, the following data were observed:
Tabulate the above data. (4 marks)

Solution:
Table showing Percentage of Tea-drinkers in Cities A and B
4.2
Diagrammatic Presentation
of Data
This method of presenting data provides the quicker
understanding of the actual situation to be explained
by data in comparison to tabular presentations.
Diagrammatic presentation of data translates quite
effectively the highly abstract ideas contained in
numbers into more concrete and easily
comprehensible form.
Diagrams may be less accurate but are much more
effective than tables in presenting the data.
Bar Diagram
Simple Bar Diagram

 Bar diagram comprises a group of equi-spaced and
equi-width rectangular bars for each class or
category of data.
 Height or length of the bar reads the magnitude of
data.
 The lower end of the bar touches the base line such
that the height of a bar starts from the zero unit.
 Bars of a bar diagram can be visually compared by
their relative height and accordingly data are
comprehended quickly.
 Discrete variables like family size, spots on a dice,
grades in an examination, etc. and attributes
such as gender, religion, caste, country, etc. can be
represented by bar diagrams.
 Bar diagrams are suitable both for frequency type
and non-frequency type variables and attributes.
However, Bar diagrams are more convenient for
non-frequency data such as income-expenditure
profile, export/imports over the years, etc.
From the following table, we have to prepare a Bar
diagram showing male literacy rates of major states of
India, 2011. It is shown in Figure 4.1.
TABLE 4.6: Literacy Rates of Major States of India
Multiple Bar Diagram
Multiple bar diagrams are used for comparing two or
more sets of data, for example income and expenditure
or import and export for different years, marks
obtained in different subjects in different classes, etc.
From the Table 4.6, we have to prepare Multiple Bar
diagram showing female literacy rates over two census
years 2001 and 2011 by major states of India.
It can be very easily derived from Figure 4.2 that female
literacy rate over the years was on increase throughout
the country. Similar other interpretations can be made
from the figure. For example, the figure shows that the
states of Bihar, Jharkhand and Uttar Pradesh
experienced the sharpest rise in female literacy, etc.
Illustration 3
Represent following data on stream-wise distribution

of students of a school from 2018 to 2020 by a
multiple bar diagram: (4 marks)
Solution:
Multiple bar diagram showing stream-wise

distribution of students
Component Bar Diagram (or Sub-
Divided Bar Diagram)
A component bar diagram shows the bar and its sub-
divisions into two or more components.
Component bar diagrams (also called sub-divided bar
diagrams or sub-diagrams) are very useful in
comparing the sizes of different component parts and
also for throwing light on the relationship among these
integral parts. For example, sales proceeds from
different products, expenditure pattern in a typical
Indian family (components being food, rent, medicine,
education, power, etc.).
To construct a component bar diagram, first of all, a
bar is constructed on the X-axis with its height
equivalent to the total value of the bar(for per cent
data the bar height is of 100 units) and proportional
heights of the components are worked out using
unitary method.
 Top Tip
1. Smaller components are given priority in parting the bar.
2. Component bar diagrams are usually shaded or coloured
suitably.
Fig. 4.3: Component Bar Diagram showing
enrolment at primary level in a district of Bihar
The bar shows the total population of children in the
age-group of 6–14 years. The components show the
proportion of those who are enrolled and those who
are not. A component bar diagram might also contain
different component bars for boys, girls and the total of
children in the given age group range.
Illustration 4
From the following details of the monthly expenditure of

two families A and B, having monthly income of
`30,000and `40,000 respectively, prepare a component bar
diagram: (4 marks)
Solution:
Component bar diagram showing monthly

expenditure on different items of two families
Pie Diagram
A pie diagram is also a component diagram, but it is a

circle whose area is proportionally divided among the
components it represents. It is also called a pie chart.
The circle is divided into as many parts as there are
components by drawing straight lines from the centre
to the circumference.
Step in the construction of a pie diagram
Step 1: The value of each component is first
expressed as a percentage of the total value of all
the components:
Step 2: Conversion of percentages of components

into angular components of the circle:
A circle in a pie chart, irrespective of its value of radius,
is thought of having 100 equal parts of 3.6° (360°/100)
each. To find out the angle, which the component shall
subtend at the centre of the circle, each percentage
figure of every component is multiplied by 3.6°.
TABLE 4.8: Distribution of Indian population
(2011) by their working status (crores)
Fig. 4.4 Pie diagram for different categories of
Indian population according to working status (in
2011).
Data represented by a component bar diagram (or sub-divided bar diagram) can
also be represented equally well by a pie chart, the only requirement being that
absolute values of the components have to be converted into percentages before
they can be used for a pie diagram. Kindly refer to Illustrations 4 and 5.
Illustration 5
From the following details of the monthly expenditure of

two families A and B, having monthly income of
`30,000 and `40,000 respectively, prepare pie
diagrams showing expenditure of the two families on
different items. (6 marks)
Solution:
Expenditure of two families on different items
Arithmetic Line Graph (Time Series Graph)
In this graph, time (hour, day, week, month, year, etc.)

is plotted along x-axis and the value of the variable
(time series data) along y-axis. A line graph by joining
these plotted points is called arithmetic line graph
(time series graph). It helps in understanding the
trend, periodicity, etc., in a long term time series data.
TABLE 4.9 Value of Exports and Imports of India (`
in 100 crores)
The figure below shows that for the period 1993-94 to
2013-14, the imports were more than the exports all
through the period. The gap between the two (imports
and exports) has widened after 2001-02. You may
notice the value of both exports and imports rising
rapidly after 2001-02.
Illustration 6
Prepare Arithmetic line graph of the following data

on sales and profits of a company X. (4 marks)
Solution:
To prepare Arithmetic line graph (Time series graph), we
take Year on the X-axis and Sales and Profits (in ` lakhs)
on the Y-axis.
A histogram is a two dimensional diagram.
Histogram
It is a set of rectangles with base as the intervals
between class boundaries (along X-axis) and with
areas proportional to the class frequency.
A histogram is never drawn for a discrete variable. It is
drawn for continuous variables only.
Case I: If the class intervals are of equal width
When intervals are equal, that is, when all rectangles
have the same base, area (= base × height) can
conveniently be represented by the frequency of any
interval for purposes of comparison. The area of the
rectangles are proportional to their respective
frequencies.
Since histograms are rectangles, a line parallel to the
base line and of the same magnitude is to be drawn at a
vertical distance equal to frequency of the class
interval.
Since, for continuous variables, the lower class
boundary of a class interval fuses with the upper class
boundary of the previous interval, the rectangles areall
adjacent and there is no open space between two
consecutive rectangles.
TABLE 4.9: Marks obtained (out of 60) in Statistics
by 30 students of class XI
 Top Tip
1. If the classes are not continuous they are first converted
into continuous classes.
2. Histogram also gives value of mode of the frequency
distribution graphically.
Illustration 7
From the following data draw a Histogram and find

the value of mode graphically. (6 marks)
Distribution of daily wage earners in a locality of a town
Solution: Since the classes are not continuous they are
first converted into continuous classes.
50– 49 = 1. So 1 ÷ 2 = 0.5. Subtract 0.5 from the lower limit
of each class and add 0.5 to the upper limit of each class.
Distribution of daily wage earners in a locality of a town
Modal Daily Wage = `80.50
 Top Tip
Graphical Method of Obtaining Mode: Graphically, mode is
obtained by drawing a histogram. The rectangle with the
greatest height will be the modal class. We join the top right
point of the rectangle of the modal class with the top right
point of the rectangle of the preceding class, and the top left
point of the rectangle of the modal class with the top left
point of the rectangle of the succeeding class. From the point
of intersection of these lines, we draw a perpendicular on the
x-axis intersecting the x-axis at a point, which is the value of
the mode of the data.
Case II: If the class intervals are of
unequal/varying width
In some type of data, it is convenient to use varying
width of class intervals. For example, when tabulating
deaths by age at death, it would be very meaningful
and useful to have very short age intervals (0, 1, 2, ...,
yrs/ 0, 7, 28, ..., days) at the beginning when death
rates are very high compared to deaths at most other
higher age segments of the population.
When bases vary in their width, the heights of
rectangles are to be adjusted to yield comparable
measurements. The answer in such a situation is
frequency density (class frequency divided by width
of the class interval) instead of absolute frequency.
Illustration 8
From the following data draw a Histogram. (4 marks)

Marks obtained (out of 100) in Economics by 50 students
of class XI
Solution: The width of the class interval 30-50 is twice

the usual width of other class intervals. Its frequency is 10.
So frequency density = 10 ÷ 2 = 5. Similarly, the width of
the class interval 50-80 is thrice the usual width of other
class intervals. Its frequency is 18. So frequency density =
18 ÷ 3 = 6.
Marks obtained (out of 100) in Economics by 50 students
of class XI
Histogram for the marks obtained (out of 100) in
Economics by 50 students of class XI
Differences between a Histogram and a Bar Diagram
A histogram looks similar to a bar diagram. But there are more differences than
similarities between the two as explained below:
1. A Bar Diagram is one dimensional. It is the height and not the width or the
area of the bar that really matters. Although the bars have the same width,
the width of a bar is unimportant for the purpose of comparison.
On the other hand, a Histogram is two-dimensional, i.e., the width of the
class and class frequency both are taken into consideration. The width in a
histogram is as important as its height.
2. In Histogram no space is left between two rectangles, but in a Bar Diagram
some space must be left between consecutive bars (except in multiple bar
diagram or component bar diagram).
3. We can have a Bar Diagram both for discrete and continuous variables, but
Histogram is drawn only for a continuous variable.
AFrequency
histogram is a two dimensional diagram.
Polygon
A frequency polygon is a plane bounded by straight

lines, usually four or more lines.
Frequency polygon is the most common method of
presenting grouped frequency distribution.
 Top Tip
Frequency polygon is an alternative to histogram and is also
derived from histogram itself.
Case I: Frequency polygon derived from histogram

itself
A frequency polygon can be fitted to a histogram for
studying the shape of the curve.
The simplest method of drawing a frequency
polygon is to join the midpoints of the topside of
the consecutive rectangles of the histogram.
It leaves us with the two ends away from the base line,
denying the calculation of the area under the curve.
The solution is to join the two end-points thus
obtained to the base line at the mid-values of the two
classes with zero frequency immediately at each end of
the distribution.
Broken lines or dots may join the two ends with the
base line.
Now the total area under the curve, like the area in the
histogram, represents the total frequency or sample
size.
 Top Tip
When comparing two or more distributions plotted on the
same axes, frequency polygon is likely to be more useful than
histogram since the vertical and horizontal lines of two or
more distributions may coincide in a histogram.
Illustration 9
Construct a histogram from the following

distribution of total wages obtained by 50 workers in
a factory and prepare a frequency polygon. (6 marks)
Distribution of daily wages obtained by 50 workers in
a factory
Solution: First, we need to convert the mid-points into

class-intervals. The difference between two mid-points is
100. Half of the difference, i.e. 50 will be added and
subtracted from each mid-point to get the class-intervals,
for example, the first class interval will be: (500 – 50) to
Distribution of daily wages obtained by 50 workers in
a factory
Case II: Frequency polygon as an
alternative to histogram
Class-marks or class midpoints can be used along the
X-axis, the distances between two consecutive class
marks being proportional/equal to the width of the
class intervals. Plotting of data becomes easier if the
class-marks fall on the heavy lines of the graph paper.
Frequencies are plotted against the mid-points of class
intervals.
When all the points have been plotted in the graph,
they are carefully joined by a series of short straight
lines.
Broken lines join midpoints of two intervals, one in the
beginning and the other at the end, with the two ends
of the plotted curve.
Illustration 10
From the following distribution of marks of students

in a school, construct a frequency polygon without
histogram. (6 marks)
Solution: The classes are not continuous. However, they

need not be converted into continuous classes since mid-
points will remain the same.
 Top Tip
The Frequency Curve is obtained by drawing a smooth
freehand curve passing through the points of the frequency
polygon as closely as possible. It may not necessarily pass
through all the points of the frequency polygon but it passes
through them as closely as possible.
Ogive (or cumulative frequency curve)
A curve obtained by plotting on a graph the
cumulative frequencies along y-axis against class
limits (the upper limits or the lower limits) of the
frequency distribution, is called a cumulative
frequency curve or ogive.
As there are two types of cumulative frequencies —
‘‘less than’’ type and ‘‘more than’’ type, accordingly there are
two ogives for any grouped frequency distribution data.
Here, in place of simple frequencies as in the case of
frequency polygon, cumulative frequencies are plotted
along y-axis against class limits of the frequency
distribution.
 For ‘‘less than’’ ogive, cumulative frequencies are
 For “more than” ogive, cumulative frequencies are
plotted against the lower limits of the class interval.
Example:
Frequency distribution of marks obtained in
mathematics
 Top Tip
As the shapes of the two ogives suggest, ‘‘less than’’ ogive is
never decreasing and ‘‘more than’’ ogive is never increasing.
Obtaining Median Graphically
An interesting feature of the two ogives together is that
their intersection point gives the median.
Obtaining median from two ogives
From the point of intersection of the two ogives, draw a
line perpendicular to the X-axis. The point where the
perpendicular line meets the X-axis, is the median.
Obtaining median from ‘less than’ or ‘more
than’ ogive
Median can also be obtained either from ‘less than’
ogive or ‘more than’ ogive. Locate N/2 on the Y-axis
(where N = Sum total of all frequencies) and from this
point draw a line parallel to the X-axis to intersect the
ogive. From this point, draw a perpendicular line on
the X-axis. The point where the perpendicular line
meets the X-axis, is the median.
The term ‘ogive’ is pronounced as ‘ojeev’ and is derived from the word ogee.
An ogee is a shape consisting of a concave arc flowing into a convex arc, so
forming an S-shaped curve with vertical ends.
Illustration 11
From the following distribution of monthly income

of 50 employees in a company, draw ‘less than’ and
‘more than’ ogives. Hence, obtain the median.
(6 marks)
Median monthly income = `38.18 thousand.
Question 1
Pie-diagram is used for:
(Choose the correct alternative) (1)
(a) Representing qualitative data in a circle
(b) Comparing different components and their relation to
the total
(c) Representing quantitative data in circle
Brain Teaser
Answer 1
(b) Comparing different components and their relation to
the total
Brain Teaser
Question 2
A comparison among the class frequencies is possible
only in: (Choose the correct alternative) (1)
(a) Frequency polygon
(b) Histogram
(c) Ogive
Brain Teaser
Answer 2
(b) Histogram
Brain Teaser
Question 3
Frequency curve is a limiting form of:
(b) Histogram
Brain Teaser
Answer 3
Brain Teaser
Question 4
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? (Choose the correct alternative) (1)
(a) 72o
(b) 48o
(c) 56o
(d) 92o
Brain Teaser
Answer 4
(b) 48o
Brain Teaser
Question 5
An approximate idea of the shape of frequency curve is
given by: (Choose the correct alternative) (1)
(a) Ogive
(b) Frequency Polygon
(c) Line diagram
(d) Bar diagram
Brain Teaser
Answer 5
Brain Teaser
Question 6
In Histogram if the classes are of unequal width then the
heights of the rectangles must be proportional to the
frequency densities. (True/False) (1)
Brain Teaser
Answer 6
True
Brain Teaser
Question 7
When all classes have equal width, the heights of the
rectangles in Histogram will be numerically equal to the
__________. (Fill up the blank with correct answer) (1)
Brain Teaser
Answer 7
Class frequencies
Brain Teaser
Question 8
When the width of all classes is same, frequency polygon
has the same area as the Histogram. (True/False) (1)
Brain Teaser
Answer 8
True
Brain Teaser
Question 9
For obtaining frequency polygon, we join the successive
points whose abscissa (x-coordinate) represent the
corresponding class frequency. (True/False) (1)
Brain Teaser
Answer 9
False
Brain Teaser
Question 10
If a company interested to know how its sales and
profits have fluctuated over the years, which of the
following should it prepare?
(a) Bar diagram
(b) Pie diagram
(c) Histogram
(d) Arithmetic line graph
Brain Teaser
Answer 10
(d) Arithmetic line graph
Brain Teaser
Question 11
Bar diagram and pie diagram come in the category of
___________. (Choose the correct alternative) (1)
(a) Geometric diagram
(b) Frequency diagram
(c) Arithmetic line graph
(d) None of these
Brain Teaser
Answer 11
Brain Teaser
Question 12
Discrete variables like family size, spots on a dice,
grades in an examination, etc. and attributes such as
gender, religion, caste, country, etc. can be represented
by__________.
(Fill up the blank with correct answer) (1)
Brain Teaser
Answer 12
bar diagrams
Brain Teaser
Question 13
The total area under the frequency polygon or the
histogram represents the___________ .
(Fill up the blank with correct answer) (1)
Brain Teaser
Answer 13
total frequency or sample size
Brain Teaser
Question 14
A ‘‘less than’’ ogive is never________ .
(a) increasing
(b) decreasing
(c) constant
(d) None of these
Brain Teaser
Answer 14
(b) decreasing
Brain Teaser
Question 15
The breadth of the rectangle is equal to the length of
the class-interval in _________. (Ogive/Histogram)
(Fill up the blank with correct option) (1)
Brain Teaser
Answer 15
Histogram
Brain Teaser
Question 16
When all classes have an equal class width, _________
is used. (Pie chart/Frequency polygon)
(Fill up the blank with correct option) (1)
Brain Teaser
Answer 16
Frequency Polygon
Brain Teaser
Question 17
In a trip organised by Hindu College, there were 100
persons each of whom paid `1,560 on an average. There
were 80 students, each of whom paid ` 1,600. Members
of the teaching staff were charged at a higher rate. The
number of servants (all males) was 6, and they were not
charged anything. The number of female members was
20 per cent of the total, and of which two were female
staff members.Tabulate the given information. (3)
Brain Teaser
Answer 17
Total contribution = 100 × `1,560 = ` 1,56,000
Table showing contributions for Hindu College trip
Brain Teaser
Question 18
What kind of diagrams are more effective in
representing the following? Explain. (3)
(i) Monthly rainfall in a year
(ii) Composition of the population of Delhi by religion
(iii) Components of cost in a factory
Brain Teaser
Answer 18
(i) Arithmetic Line Graph (Time Series Graph)
(ii) Multiple Bar Diagram
(iii) Pie Diagram
Brain Teaser
Question 19
Prepare a histogram and a frequency curve from the
following data: (4)
Brain Teaser
Question 20
Draw an appropriate diagram to represent the following
data: (4)
Brain Teaser
Question 1
What is ‘tabular presentation of data’? Explain briefly the
four kinds of classification used is tabulation? (6 marks)
Exercises
Question 2
Distinguish between ‘Temporal Classification’ and ‘Spatial
Classification’ of data used in tabulation with the help of
an example of each. (4 marks)
Exercises
Question 3
What are the parts of a good statistical table? Explain.
(6 marks)
Exercises
Question 4
Explain the following parts of a table: (3 marks)
(a) Captions
(b) Stubs
(c) Body of the table
Exercises
Question 5
Explain briefly the different types of Bar Diagrams.
(6 marks)
Exercises
Question 6
Distinguish between ‘Component Bar Diagram’ and ‘Pie
Diagram’. (6 marks)
Exercises
Question 7
Give the differences between a histogram and a bar
diagram. (4 marks)
Exercises
Question 8
Explain any three types of frequency diagrams.
(6 marks)
Exercises
Question 9
“A frequency polygon is an alternative to histogram and
is also derived from histogram itself.” Explain.(6 marks)
Exercises
Question 10
What is ‘ogive’? Explain the two types of ‘ogives’.
(3 marks)
Exercises
Question 11
What is ‘Arithmetic Line Graph? Explain its usefulness.
(3 marks)
Exercises
Question 12
How does the procedure of drawing a histogram differ
when class intervals are unequal in comparison to equal
class intervals in a frequency table? (NCERT) (3 marks)
Exercises
Question 1
Bar diagram is a __________.
(Choose the correct alternative) (NCERT)
(a) one-dimensional diagram
(b) two-dimensional diagram
(c) diagram with no dimension
(d) none of the above

Answer 1
(a) one-dimensional diagram

Question 2
Data represented through a histogram can help in finding
graphically the __________.
(Choose the correct alternative) (NCERT)
(a) mean
(b) mode
(c) median
(d) All of these

Answer 2
(b) mode

Question 3
Ogives can be helpful in locating graphically the
__________. (Choose the correct alternative) (NCERT)
(a) mode
(b) mean
(c) median
(d) None of these

Answer 3
(c) median

Question 4
Data represented through arithmetic line graph help in
understanding: (Choose the correct alternative) (NCERT)
(a) long term trend
(b) cyclicity in data
(c) seasonality in data
(d) All of these

Answer 4
(a) long term trend

Question 5
Width of bars in a bar diagram need not be equal.
True/False? Give reason. (NCERT)

Answer 5
True: A Bar Diagram is one dimensional. It is the height
and not the width or the area of the bar that
really matters. Although the bars have the same
width, the width of a bar is unimportant for the
purpose of comparison.

Question 6
Width of rectangles in a histogram should essentially be
equal. True/False? Give reason. (NCERT)

Answer 6
True: A Histogram is two-dimensional, i.e., the width of
the class and class frequency both are taken into
consideration. The width in a histogram is as
important as its height.

Question 7
Histogram can only be formed with continuous
classification of data. True/False? Give reason. (NCERT)

Answer 7
True: If the classes are not continuous they are first
converted into continuous classes.

Question 8
Histogram and Bar Diagram are the same method of
presentation of data. True/False? Give reason. (NCERT)

Answer 8
False: In Histogram no space is left between two
rectangles, but in a Bar Diagram some space must be
left between consecutive bars (except in multiple bar
or component bar diagram). We can have a Bar
Diagram both for discrete and continuous
variables, but Histogram is drawn only for a
continuous variable. Histogram also gives value of
mode of the frequency distribution graphically.

Question 9
Mode of a frequency distribution can be known
graphically with the help of histogram.
True/False? Give reason. (NCERT)

Answer 9
True: Histogram gives value of mode of the frequency
distribution graphically.

Question 10
Median of a frequency distribution can be known from
the ogives. True/False? Give reason. (NCERT)

Answer 10
True: The two ogives together gives the median. The X-
coordinate of the perpendicular drawn from the
point of intersection of the two ogives gives the
value of the median.

Question 11
Pie charts usually are not drawn with absolute values of
a category. True/False? Give reason.

Answer 11
True: The values of each category are first expressed as
percentage of the total value of all the categories.
Then, to find out the angle, which the component
shall subtend at the centre of the circle, each
percentage figure of every component is
multiplied by 3.6°.

Question 12
For constructing a frequency polygon, both class
boundaries and class marks can be used along the X-
axis. True/False? Give reason.

Answer 12
True: No matter whether class boundaries or
midpoints are used in the X-axis, frequencies (as
ordinates) are always plotted against the mid-
point of class intervals.

Question 13
An arithmetic line graph is also called time series graph.

Answer 13
True: In this graph, time (hour, day/date, week, month,
year, etc.) is plotted along x-axis and the value of
the variable (time series data) along y-axis.

Question 14
Histogram is prepared in case of:
(a) Individual Series
(b) Discrete Series
(c) Continuous Series
(d) None of these

Answer 14
(c) Continuous Series

Question 15
While preparing Arithmetic line graph, we show
________ on the X-axis:
(a) Time
(b) Income
(c) Expense
(d) All of these

Answer 15
(a) Time

Question 16
Mode is found graphically by:
(a) Frequency Polygon
(b) Ogive
(c) Histogram
(d) None of these

Answer 16
(c) Histogram

Question 17
Median of a distribution can be obtained from
________. (Choose the correct alternative)
(a) Histogram
(c) Ogives
(d) None of these

Answer 17
(c) Ogives

Question 18
Diagrammatic representation of the cumulative
frequency distribution is:
(b) Ogive
(c) Histogram
(d) None of these

Answer 18
(b) Ogive

Question 19
Data (even voluminous data)speak meaningfully through
________________ . Fill in the blank.

Answer 19
presentation

Question 20
In a _________ presentation, data are presented in
rows (read horizontally) and columns (read vertically).
(a) tabular
(b) diagrammatic
(c) graphic
(d) All of these

Answer 20
(a) tabular

Question 21
The most important advantage of tabulation is that it
organises data for further statistical treatment
and__________ . For large quantity of data tabular
presentation helps in accommodating any volume of
data for one or more_______ . Fill in the blanks.

Answer 21
decision-making, variables

Question 22
When classification is done according to attributes, such
as social status, physical status, nationality, etc., it is called
__________ classification.
(a) Qualitative
(b) Quantitative
(c) Temporal
(d) Spatial

Answer 22
(a) Qualitative

Question 23
The attributes for classification are sex and location
which are _______ in nature. Fill in the blank.

Answer 23
qualitative

Question 24
In this classification ‘time’ becomes the classifying
variable and data are categorised according to time.
(a) Qualitative
(b) Quantitative
(c) Temporal
(d) Spatial

Answer 24
(c) Temporal

Question 25
If more than one table is presented, it is
the__________ that distinguishes one table from
another. Fill in the blank.

Answer 25
table number

Question 26
The _______ of a table narrates about the contents of
the table. Fill in the blank.

Answer 26
title

Question 27
The designations of the rows are also called
___________, and the complete left column is known
as ____________. Fill in the blanks.

Answer 27
stubs or stub items, stub column

Question 28
Match the columns:
Column I Column II
(i) At the top of each column in a table, (a) Title
a column designationis given to
explain figures of the column.
(ii) It is given at the top or at the (b) Table number
beginning of the title of the table.
(iii) It has to be clear, brief and carefully (c) Caption
worded so that the interpretations
made from the table are clear and
free from ambiguity.
(iv) The main part which contains the (d) Body of the table
actual data.

Answer 28
(i) – (c), (ii) – (b), (iii) – (a), (iv) – (d)

Question 29
___________ of data translates quite effectively the
highly abstract ideas contained in numbers into more
concrete and easily comprehensible form.
Fill in the blank.

Answer 29
Diagrammatic presentation

Question 30
Which of the following is a diagrammatic presentation
of data? (Choose the correct alternative)
(b) Frequency diagram
(c) Arithmetic line graph
(d) All of these

Answer 30
(d) All of these

Question 31
_____ of a bar diagram can be visually compared by
their relative height and accordingly data are
comprehended quickly. __________ of the bar reads
the magnitude of data. Fill in the blanks.

Answer 31
Bars, Height or length

Question 32
Bar diagrams are suitable for:
(a) Frequency type variables and attributes.
(b) Non-frequency type variables and attributes.

Answer 32

Question 33
_______ are used for comparing two or more sets of
data, for example income and expenditure or import
and export for different years, marks obtained in
different subjects in different classes, etc.
(a) Simple bar diagrams
(b) Multiple bar diagrams
(c) Component bar diagrams

Answer 33

Question 34
A _____ shows the bar and its sub-divisions into two
or more components. (Choose the correct alternative)
(a) Simple bar diagram
(b) Multiple bar diagram
(c) Component bar diagram
(d) All of these

Answer 34

Question 35
If you are interested to know the expenditure pattern in
a typical Indian family (components being food, rent,
medicine, education, power, etc.), which of the following
is suitable? (Choose the correct alternative)
(b) Multiple bar diagram
(d) None of these

Answer 35

Question 36
To construct a component bar diagram, first of all, a bar
is constructed on the X-axis with its height equivalent
to the ___________ and for per cent data the bar
height is of ___________ . Fill in the blanks.

Answer 36
total value of the bar, 100 units

Question 37
To construct a component bar diagram, ______ are
given priority in parting the bar.
(a) smaller components
(b) larger components
(c) moderate components
(d) None of these

Answer 37
(a) smaller components

Question 38
A pie diagram is also a _________________, but it is a
circle whose area is proportionally divided among the
components it represents.
(a) pie chart
(b) component diagram

Answer 38
(b) component diagram

Question 39
A circle in a pie chart, irrespective of its value of radius,
is thought of having ______ equal parts of ______
degree each. Fill in the blanks.

Answer 39
100, 3.6

Question 40
Data in the form of grouped frequency distributions are
generally represented by:
(a) Histogram
(b) Frequency polygon
(c) Ogive
(d) All of these

Answer 40
(d) All of these

Question 41
A histogram is a _________ diagram.
(a) one dimensional
(b) two dimensional
(c) multi-dimensional
(d) None of these

Answer 41
(b) two dimensional

Question 42
A histogram is never drawn for a _________ variable.
Fill in the blank.

Answer 42
Discrete

Question 43
While constructing a histogram, if bases vary in their
width, the heights of rectangles are to be adjusted to
yield comparable measurements. The answer in such a
situation is _______________ instead of absolute
frequency. Fill in the blank.

Answer 43
frequency density (class frequency divided by width of
the class interval)

Question 44
In ________ no space is left between two rectangles,
but in a ________ some space must be left between
consecutive bars. Fill in the blanks.

Answer 44
Histogram, Bar Diagram

Question 45
We can have a _________ (bar Diagram/Histogram)
both for discrete and continuous variables.

Answer 45
Bar diagram

Question 46
_________ (bar Diagram/Histogram)also gives value of
mode of the frequency distribution graphically.

Answer 46
Histogram

Question 47
A frequency polygon is a plane bounded by straight lines,
usually __________ or more lines. Fill in the blank.

Answer 47
four

Question 48
Frequency polygon is an alternative to and is also
derived from ________ itself. Fill in the blank.

Answer 48
histogram

Question 49
__________ is the most common method of
presenting grouped frequency distribution.
(a) Histogram
(c) Frequency curve
(d) Ogive

Answer 49

Question 50
The simplest method of drawing a frequency polygon is
to join the ________ of the topside of the consecutive
rectangles of the histogram. Fill in the blank.

Answer 50
midpoints

Question 51
While constructing a frequency polygon, _____________
may join the two ends with the base line. Fill in the blank.

Answer 51
broken lines or dots

Question 52
While constructing a frequency polygon, _________
are plotted against the ________ of class intervals.
Fill in the blanks.

Answer 52
Frequencies, mid-points

Question 53
When comparing two or more distributions plotted on
the same axes, ____________ is likely to be more
useful than histogram since the vertical and horizontal
lines of two or more distributions may coincide in a
histogram. Fill in the blank.

Answer 53
frequency polygon

Question 54
The ____________ is obtained by drawing a smooth
freehand curve passing through the points of the
frequency polygon as closely as possible.
Fill in the blank.

Answer 54
frequency curve

Question 55
A curve obtained by plotting on a graph the cumulative
frequencies along y-axis against class limits of the
frequency distribution, is called a
____________________.
(a) Frequency curve
(b) less than ogive
(c) more than ogive
(d) cumulative frequency curve or ogive

Answer 55
(d) cumulative frequency curve or ogive

Question 56
For __________ ogives the cumulative frequencies are
plotted against the respective lower limits of the class
interval. Fill in the blank.

Answer 56
“more than”

Question 57
An interesting feature of the two ogives together is that
their intersection point gives the___________ .
(a) mean
(b) median
(c) mode
(d) range

Answer 57
(b) median

Question 58
A line graph by joining the plotted points (time along x-
axis and the value of the variable along y-axis) is
called______________ .
(a) frequency curve
(b) time series graph
(c) frequency polygon
(d) histogram

Answer 58
(b) time series graph

Question 59
The mode of presentation of data are:
(a) Textual, tabulation and diagrammatic
(b) Tabular, internal and external
(c) Textual, tabular and internal
(d) Tabular, textual and external

Answer 59
(a) Textual, tabulation and diagrammatic

Question 60
The best method of presentation of data is:
(a) Textual
(b) Tabular
(c) Diagrammatic

Answer 60
(b) Tabular

Question 61
The most attractive method of data presentation is:
(a) Tabular
(b) Textual
(c) Diagrammatic

Answer 61
(c) Diagrammatic

Question 62
‘Stub’ of a statistical table is the:
(a) Left part of the table describing the columns
(b) Right part of the table describing the columns
(c) Right part of the table describing the rows
(d) Left part of the table describing the rows

Answer 62
(d) Left part of the table describing the rows.

Question 63
In tabulation source of the data, if any, is shown in the:
(a) Note
(b) Body of the table
(c) Stub
(d) Caption

Answer 63
(a) Note

Question 64
Which of the following statements is untrue for
tabulation? (Choose the correct alternative)
(a) Statistical analysis of data requires tabulation.
(b) It facilitates comparison between rows and not
columns.
(c) Complicated data can be presented.
(d) Diagrammatic representation of data requires
tabulation.

Answer 64
(b) It facilitates comparison between rows and not
columns

Question 65
Hidden trend, if any, in the data can be noticed in:
(a) Textual presentation
(b) Tabulation
(c) Diagrammatic representation
(d) All of these.

Answer 65
(c) Diagrammatic representation

Question 66
Diagrammatic representation of data is done by:
(a) Diagrams
(b) Charts
(c) Pictures
(d) All of these

Answer 66
(d) All of these

Question 67
The most accurate mode of data presentation is:
(a) Diagrammatic method
(b) Tabulation
(c) Textual presentation
(d) None of these

Answer 67
(b) Tabulation

Question 68
Frequency density corresponding to a class interval is
the ratio of: (Choose the correct alternative)
(a) Class frequency to the total frequency
(b) Class frequency to the class size
(c) Class length to the class frequency
(d) Class frequency to the cumulative frequency

Answer 68
(b) Class frequency to the class size

Question 69
Median of a distribution can be obtained from:
(b) Histogram
(c) Less than type ogive
(d) None of these

Answer 69
(c) Less than type ogive

Question 70
Graph is a ____________.
(a) Arithmetic Line diagram
(b) Bar diagram
(c) Pie diagram
(d) Pictogram

Answer 70
(a) Arithmetic Line diagram

Question 71
Unequal widths of classes in the frequency distribution
do not cause any difficulty in the construction of:
(a) Ogive
(c) Histogram
(d) None of these

Answer 71
(c) Histogram

Question 72
The graphical representation of a cumulative frequency
distribution is called: (Choose the correct alternative)
(a) Histogram
(b) Ogive
(c) Cumulative frequency curve

Answer 72

Question 73
Frequency density is used in the construction of
__________ when the classes are of unequal width.
(a) Histogram
(b) Ogive
(c) Frequency Polygon
(d) All of these

Answer 73
(a) Histogram

Question 74
Histogram emphasizes the widths of rectangles between
the class boundaries. (True/False)

Answer 74
True

Question 75
To find the mode graphically, ______ may be used.
Fill up the blank with correct answer.

Answer 75
Histogram

Question 76
Diagrammatic representation of the cumulative
frequency distribution is called ________.
(b) Ogive
(c) Histogram
(d) None of these

76
(b) Ogive

Question 77
An Ogive can be prepared in _____________ different
ways. (Choose the correct alternative)
(a) 2
(b) 3
(c) 4
(d) None of these

Answer 77
(a) 2

Question 78
The curve obtained by joining the points, whose x-
coordinates are the upper limits of the class-intervals
and y coordinates are corresponding cumulative
frequencies is called _________.
(a) Ogive
(b) Histogram
(c) Frequency Polygon
(d) Frequency Curve

Answer 78
(a) Ogive

Time Allowed: 1 hour Maximum Marks: 25

Question 1
What is meant by tabulation? (1 mark)
Question 2
A graph that represent the class frequencies in a
frequency distribution by vertical rectangles is called
_________. (Fill up the blank) (1 mark)
Answer 2
Histogram
Question 3
For presenting the 12th class exam results of different
faculty (Science, Commerce and Arts) of a school
pertaining the last 3 years in an impressive way, which of
the following digrams will be suitable?
(b) Multiple bar diagrams
(c) Sub-divided bar diagram
(d) Both (b)and (c)
Answer 3
(d) Both (b)and (c)
Question 4
Which of the following information can be derived with
the help of histogram?
(a) Mean
(b) Median
(c) Mode
(d) Correlation
Question 5
(a) Diagram formed by joining mid points of the tops of
all rectangles in a Histogram ⇒ Ogive
(b) Diagram which shows total value as well as part
values of a set of data simultaneously ⇒ Sub-divided
bar diagram
(c) One dimensional diagram ⇒ Frequency polygon
Answer 5
(b) Diagram which shows total value as well as part
values of a set of data simultaneously ⇒ Sub-divided
bar diagram
Question 6
What is ‘ogive’? Explain the two types of ogives.
(3 marks)
Question 7
What is Arithmetic Line Graph? State its usefulness.
(3 marks)
Question 8
Represent the following data by means of a
component (sub-divided) bar diagram: (4 marks)
Answer 8
Question 9
With the help of given data, construct a frequency
polygon without histogram. (4 marks)
Question 10
Convert the following frequency distribution of marks
obtained by 225 commerce students of a school into a
‘more than’ type cumulative frequency distribution, draw
‘more than’ ogive and obtain the value of median
graphically: (6 marks)
Answer 10
Time Allowed: 1 hour Maximum Marks: 25

Question 1
The diagram which is formed by joining mid-points of the
top of all rectangles in a histogram in straight lines is
called __________. (Fill up the blank) (1 mark)
Answer 1
Frequency polygon
Question 2
A systematic presentation of data in columns and rows
is known as __________. (Fill up the blank) (1 mark)
Answer 2
table
Question 3
The title given to the vertical columns of a table is
called: (Choose the correct alternative) (1 mark)
(a) Title
(b) Stubs
(c) Caption
Answer 3
(c) Caption
Question 4
In Arithmetic line graphs, which of the following is shown
on x-axis? (Choose the correct alternative) (1 mark)
(a) Income
(b) Expenditure
(c) Time
(d) Any of these
Answer 4
(c) Time
Question 5
If a family spends 30% of its income on food, then to
present it in pie diagram, how many degrees of angle is
formed? (Choose the correct alternative) (1 mark)
(a) 96o
(b) 108o
(c) 120o
(d) 132o
Answer 5
(b) 108o
Question 6
Prepare a multiple bar diagram from the following
data: (3 marks)
Answer 6
Question 7
‘Though a Histogram looks similar to a bar diagram, yet
their are more differences than similarities between the
two.’ State any three differences between a histogram
and a bar diagram. (3 marks)
Question 8
With the help of given data, draw a histogram and a
frequency polygon. Also find the value of mode
graphically. (4 marks)
Question 9
Explain the main parts of a good statistical table.
(4 marks)
Question 10
Represent the folowing data by a pie diagram:
(6 marks)
Measures of Central
Tendency
 Arithmatic mean, median and mode

Introduction
In the previous chapter, you have read about the tabular
and graphic representation of the data. In this chapter,
you will study the measures of central tendency which is a
numerical method to explain the data in brief. You can see
examples of summarising a large set of data in day-to-day
life, like average marks obtained by students of a class in a
test, average rainfall in an area, average production in a
factory, average income of persons living in a locality or
working in a firm, etc.
Madhav is a farmer. He grows food grains in his land in a
village called Ghatal in Midnapur district of West Bengal.
The village consists of 50 small farmers.
For this, you may have to evaluate the size of his land
holding, by comparing with the size of land holdings of
other farmers of Ghatal. You may like to see if the land
owned by Madhav is –
1. above average in ordinary sense
(Arithmetic Mean)
2. above the size of what half the farmers own
(Median)
3. above what most of the farmers own
(Mode)
In order to evaluate Madhav’s relative economic
condition, you will have to summarise the whole
set of data of land holdings of the farmers of
Ghatal.
This can be done by the use of central tendency, which
summarises the data in a single value in such a way that
this single value can represent the entire data.
Meaning and Objectives/Significance of Measures of
Central Tendency
A measures of central tendency or “average” is a way of
summarising the data in the form of a typical or
representative value. In other words, measures of
central tendency or averages are used to summarise the
data. It specifies a single most representative value to
describe the data set.
There are several statistical measures of central
tendency or “averages”.
The three most commonly used averages are:
 Arithmetic Mean
 Median
 Mode
The following points highlight the objectives and
significance of the measures of central tendency or
“averages” in statistical work:
1. To Represent the whole group – An average gives a
single figure that describe the characteristics of the
entire group so that one can get the quick
understanding of the general size of the individuals in
the group.
2. To facilitate comparison– An average helps in
comparing one set of data with the other. For
example, the performance of the students of two
different schools can be compared by knowing their
average results.
3. To facilitate further statistical analysis– Various tools
of statistical analysis like standard deviation,
correlation etc. are based on averages.
4. To help in decision-making – Averages are used in our
daily life. Averages helps in making decisions and in
planning in various areas. A businessman may like to
know the normal output of a plant, sales level, etc. All
this refers to averages.
Thus, the main functions of the measures of central
tendency are:
 One representative value for the whole group
 To represent a brief picture of data
 Comparisons
 Formulation of policies
5.1
Arithmetic Mean
Arithmetic mean is the most commonly used measure of
central tendency.
It is defined as the sum of the values of all observations
divided by the number of observations and is usually
denoted by X .
In general, if there are N observations as X1, X2, X3, ..., XN,
then the Arithmetic Mean is given by:
X1 + X 2 + X 2 +  + X N
X=
N N
The right hand side can be written as ∑.XHere,

i
i is an
i =1
N
index which takes successive values 1, 2, 3,...N.
For convenience, this will be written in simpler form
without the index i.
where, ΣX = sum of all observations and N = total

number of observations.
EXAMPLE 1
The monthly income (in `) of six families is given as follows.

Calculate the arithmetic mean and interpret the result. (1
marks)
1600, 1500, 1400, 1525, 1625, 1630
Solution: The mean family income is obtained by
adding up the incomes and dividing by the number
of families.
Interpretation: It implies that on an average, a family

earns `1,547.
Some Interesting Properties of Arithmetic
Mean
1. The sum of deviations of items about
arithmetic mean is always equal to zero.
Symbolically,
Example:
X (X – X )
10 –20
20 –10
30 0
40 +10
50 +20
ΣX = 150 Σ (X – X ) = 0
ΣX 150
=
X = = 30.
N 5
Now we calculate the deviations of all the items from the
arithmetic mean ( = 30),
X we find that the sum of the
deviations from the arithmetic mean, i.e. Σ(X– ) comesX
out to be zero.
2. Arithmetic Mean is affected
by extreme values. X
Any large value, on either end, can push it up or down.

Since the value of mean depends upon each and every value
of the series, extreme values, i.e., very small and very large
values, unduly affect the value of the arithmetic mean.
For example, suppose in a tutorial group there are 4
students and their marks in a test are 60, 70, 55 and 65.
Now, suppose if the marks of the third student were 95

instead of 55, the arithmetic mean would be:
X
Thus, one single large value, i.e., 95 has increased the

average marks considerably.
EXAMPLE 2
The average age of class having 35 students is 14 years.

When the age of the class teacher is added to the sum
of the ages of the students, the average rises by 0.5
year. What must be the age of the teacher? (3 marks)
Solution:
ΣX
=X age⇒
Therefore, total N of Σ35
=X students
N X = 35 × 14 = 490
After adding the age of the teacher, the average age

= 14.5 years
Therefore, total age of students and the teacher together =
36 × 14.5 = 522
Thus, age of the teacher = 522 – 490 = 32 years
EXAMPLE 3
The mean marks of 100 students were found to be 40.

Later on it was discovered that a score of 53 was
wrongly read as 83. Find the correct mean marks. (3
marks)
Solution: N = 100, ΣX
X= 40. Since X= ,
N
Therefore ΣX = N X= 100 × 40 = 4,000.
But this is not correct ΣX.
Correct ΣX = Incorrect ΣX – wrong item + correct item
= 4,000 – 83 + 53 = 3,970
correct ΣX 3,970
Therefore, correct mean marks = = = 39.7
N 100
EXAMPLE 4
The mean marks of 100 students were found to be 40. Later

on it was discovered that two scores were wrongly taken as
30 and 27 instead of 3 and 72. Find the correct mean marks.
(3 marks)
Solution: N = 100, X ΣX
= 40. Since X= ,
N
Therefore ΣX = N X= 100 × 40 = 4,000.
Correct ΣX = Incorrect ΣX
– sum of wrong items + sum of correct items
= 4,000 – (30 + 27) + (3 + 72) = 4,000 – 57 + 75 = 4,018
correct ΣX 4,018
Therefore, correct mean marks = = = 40.18
N 100
EXAMPLE 5
The average marks in statistics of 10 students of a class were

68. A new students took admission with 72 marks where as
two existing students left the college. If the marks of these
students were 40 and 39, find the correct average marks. (3
marks)
Solution: N = 10, X= 68. Since X = Σ ,X
N
Therefore ΣX = N X= 10 × 68 = 680.
Correct ΣX = 680 – (40 + 39) + 72 = 673
correct ΣX 673
Therefore, correct average marks = = = 74.77
N 9
Combined Mean
If we have the arithmetic mean and number of items of two
groups, we can compute combined mean of these two groups
by applying the following formula:
N1 = Number of items in the first group

X
N2 = Number of items in the second group

X1 = Arithmetic mean of the first group
X2 = Arithmetic mean of the second group
X 12 = Combined mean of the two groups
For example, the mean height of 25 male workers in a factory is 165
cm and the mean height of 35 female workers in the same factory
is 155 cm.
The combined mean height of total 60 workers in the factory will
be:
If weNote
have to find out the combined mean of three groups, the
formula will be:
EXAMPLE 6
The mean marks of 60 students in section A is 40 and mean
marks of 40 students in section B is 35. Calculate the
combined mean marks of all the students of sections A and
B. (3 marks)
Solution:
Sections No. of students Mean marks
A N1 = 60 X 1 = 40
B N2 = 40 X 2 = 35
Combined mean marks
EXAMPLE 7
The mean monthly wages paid to 1,000 workers of a factory
were `5,000. The mean monthly wages paid to male and
female workers were `5,200 and `4,200 respectively.
Determine the percentage of male workers and female
workers employed by the factory. (4 marks)
Solution: Suppose the number of male and female workers
be N1 and N2 respectively.
Therefore, N1 + N2 = 1,000 ⇒ N1 = 1,000 – N2
Given, 12 = 5,000; 1 = 5,200 and 2= 4,200.
X X X
N1 X1 + N 2 X 2
X12 =
N1 + N 2
Therefore, 5,000 = 5,200N1 + 4,200N 2
1,000
⇒ 5,200 N1 + 4,200 (1000 − N1 ) =

50,00,000
or, 5,200 N1 + 42,00,000 – 4,200 N1 = 50,00,000

or, 1,000 N1 = 8,00,000
Thus, N1 = 800
So, N2 = 1,000 – 800 = 200
Therefore, the percentage of male workers

800
employed = × 100 = , and the percentage
80%
1,000
200
of female workers employed = × 100 =20%.
1,000
EXAMPLE 8
The mean marks of students of combined sections A and B are 38.
There are 60 and 40 students in sections in sections A and B
respectively. If mean marks of students in section A are 40, find
out the mean marks of students in section B. (4 marks)
Solution:
Sections No. of students Mean marks

A N1 = 60 X 1 = 40
B N2 = 40 X 2 = 35
Combined mean marks 12 = `38.
X
We know that N1 X1 + N 2 X 2
X12 =
N1 + N 2
60 × 40 + 40X 2
=
Therefore, 3.8 ⇒ 2,400 =
+ 40X 2 3,800
60 + 40
or, 40 X2= 1,400
⇒ X2 = 1,400/40 = 35
Therefore, mean marks of students in

Section B = 35 marks.
Weighted Arithmetic Mean
One of the limitations of the simple arithmetic mean is that it
gives equal importance to all the items. But there are cases
where the relative importance of the different items is not the
same. In such cases, we calculate the weighted arithmetic
mean. It is important to assign weights to various items according
to their importance when we calculate the arithmetic mean.
For example, there are two commodities,Xmangoes and
potatoes. We are interested in finding the average price of
mangoes(P1= `100) and potatoes (P2 = `30).
The arithmetic mean will be = `65

P1 + P2 100 + 30
=
2 2
However, we may want to give more importance to the rise in
price of potatoes (P2). When the prices rise, we may be
interested in the rise in prices of commodities that are more
important to us.
To do this, we may use as ‘weights’ the share of mangoes in the
budget of the consumer (W1 = 2) and the share of potatoes in the
budget (W2 = 10).
Now the arithmetic mean weighted by the shares in the budget
would be: X
W1 P1 + W2 P2 2 × 100 + 10 × 30
= = ` 41.67
W1 + W2 2 + 10
In general, the weighted arithmetic mean is given by:

EXAMPLE 9
Find out weighted mean of the following: (3 marks)
Items Rice Wheat Pulses Cloth Others
Price `100 per `100 per `100 per `100 per `100 per
kg Kg Kg Metre Unit
Weight 6 5 3 2 1
Solution:
Calculation of Weighted Mean
Items Price (X) Weight (W) WX

Rice 100 6 600
Wheat 150 5 750
Pulses 300 3 900
Cloth 15 2 30
Others 100 1 100
ΣW=17 ΣWX = 2,380
ΣWX 2,380
Weighted mean=
Xw = = 140
ΣW 17
EXAMPLE 10
A contractor employs three types of workers-male,

female and children. To a male he pays `400 per day, to a
female worker `320 per day and to a child worker `150
per day. What is the average wage per day paid by the
contractor, if the number of male, female and child
workers employed are 20, 15 and 5 respectively? (3
marks)
Solution:
The average wage would be the weighted arithmetic mean,
calculated as follows:
Types of Wages per day No. of workers WX
worker (in `) X W
Male 400 20 8,000
Female 320 15 4,800
Children 150 5 750
ΣW=40 ΣWX = 13,550
ΣWX 13,550
=
Xw = = 338.75
ΣW 40
Therefore, the average wage per day paid by the contractor is
`338.75
Arithmetic Mean for Series of Ungrouped
Data
Direct Method
Arithmetic mean by direct method is the sum of all
observations in a series divided by the total number of
observations.
Where, ΣX = sum of all observations and N = total number of

observations.
EXAMPLE 11
The following data shows the weekly income of 10 families.

Calculate the arithmetic mean by direct method and interpret
the result. (3 marks)
Family A B C D E F G H I J
Weekly
Income (in 850 700 100 750 5,000 80 420 2,500 400 360
`)
Solution:
Computation of Arithmetic Mean by Direct Method
Family A B C D E F G H I J Total
Weekly
11,16
Income 850 700 100 750 5,000 80 420 2,500 400 360
(X) 0
ΣX 11,160
=
X = = `1,116
N 10
Interpretation: The average weekly income of a family is

`1,116.
Assumed Mean Method
If the number of observations in the data is more and/or
figures are large, it is difficult to compute arithmetic mean
by direct method. The computation can be made easier by
using assumed mean method. In order to save time in
calculating mean from a data set containing a large number
of observations as well as large numerical figures, you can
use assumed mean method, as explained below:
X
Step 1: Assume a particular figure in the data as the arithmetic
mean on the basis of logic/experience.
Let A = assumed mean, X = individual observations and
N = total numbers of observations.
 Top Tip
Any value, whether existing in the data or not, can be taken as
assumed mean. However, in order to simplify the calculation,
centrally located value in the data can be selected as assumed
mean.
Step 2: Take deviations of the said assumed mean

from each of the observation. Symbolically, d =
deviation of assumed mean from individual
observation, i.e. d = X – A
Step 3: Take the summation of these deviations and
divide it by the number of observations in the
data. Symbolically, Σd = Σ(X – A), then
Σd
find N
Step 4: The actual arithmetic mean is estimated by
taking the sum of the assumed mean and the
ratio of sum of deviations to number of
observations. Symbolically,
EXAMPLE 12
The following table gives the daily income of ten workers in a

factory. Find the arithmetic mean by Assumed Mean Method.
(NCERT) (3 marks)
Workers A B C D E F G H I J
Daily
Income (in 120 150 180 200 250 300 220 350 370 260
`)
Solution:
Computation of Arithmetic Mean by Assumed Mean Method
Workers Daily Income (`) (X) d = X – 250
A 120 – 130
B 150 – 100
C 180 – 70
D 200 – 50
E 250 0
F 300 + 50
G 220 – 30
H 350 + 100
I 370 + 120
J 260 + 10
N = 10 – 100
X =A +
Σd
N
=250 + ( )
−100
10
=250 – 10 =` 240
Thus, the average daily income of a worker is `240.
Step Deviation Method
The calculations can be further simplified by dividing all the
deviations taken from assumed mean by the common factor
‘c’. The objective is to avoid large numerical figures, i.e., if d = X
– A is very large, then find d′. This can be done
as follows: d=′ d= X − A
c c
The formula for calculating mean is: X
where: d′ = (X − A); c = common factor; N = number of

c
observations; and A = Assumed mean
EXAMPLE 13
The following data shows the weekly income of 10 families.

Calculate the arithmetic mean by step deviation method and
interpret the result. (3 marks)
Family A B C D E F G H I J
Weekly
Income (in 850 700 100 750 5,000 80 420 2,500 400 360
`)
Solution:
Families Income (X) d = X – 850 d′ = (X – 850)/10
A 850 0 0
B 700 – 150 – 15
C 100 – 750 – 75
D 750 – 100 – 10
E 5000 +4150 + 415
F 80 – 770 – 77
G 420 – 430 – 43
H 2500 + 1650 + 165
I 400 – 450 – 45
J 360 – 490 – 49
+266
Σd ′ 266
X= A+ × c = 850 + × 10 = 850 + 266 = `1,116
N 10
Interpretation: The average weekly income of a family is `1,116.
Calculation of arithmetic mean for Grouped
data
In case of Discrete Series
Direct Method
In case of discrete series, frequency against each
observation is multiplied by the value of the observation.
The values, so obtained, are summed up and divided by the
total number of frequencies. Symbolically,
where, ΣfX = sum of the product of variables and

frequencies and Σf = sum of frequencies
EXAMPLE 14
Plots in a housing colony come in only three sizes: 100 sq. metre, 200
sq. meters and 300 sq. metre and the number of plots are respectively
200, 50 and 10. Calculate the mean plot size in the housing colony by
direct method. (3 marks)
Solution: Computation of Arithmetic Mean by Direct Method
Plot Size in sq. metre (X) No. of plots (f) fX
100 200 20,000
200 50 10,000
300 10 3,000
260 33,000
ΣfX 33000
=
X = = 126.92
Σf 260
Therefore, the mean plot size in the housing colony is 126.92 sq.
metre.
Assumed Mean Method
As in case of individual series the calculations can be simplified
by using assumed mean method, as described earlier, with a
simple modification.
Step 1: Since frequency (f) of each item is given here, we multiply
each deviation (d) by the frequency to get fd.
Step 2: Then we get Σfd.
Step 3: The next step is to get the total of all frequencies, i.e.
Σf.
Step 4: Finally, the arithmetic mean is calculated by using the
following formula:
EXAMPLE 15
Plots in a housing colony come in only three sizes: 100 sq. metre,
200 sq. meters and 300 sq. metre and the number of plots are
respectively 200, 50 and 10. Calculate the mean plot size in the
housing colony by assumed mean method. (3 marks)
Solution:
Computation of Arithmetic Mean by Assumed Mean Method
Plot Size in sq. metre (X) No. of plots (f) d = X – 200 fd

100 200 – 100 – 20,000
200 50 0 0
300 10 + 100 + 1,000
260 – 19,000
Mean plot size
X=A+
Σfd
Σf
=200 +(−19,000
260
=)
200 − 73.08 =
126.92 sq. metre
In this case, the deviations are divided by the common factor
‘c’ which simplifies the calculation.
d X−A
Step 1: We estimate d=′ = in order to reduce the
c c
size of numerical figures for easier calculation.
Step 2: Then get fd′ and Σfd′
Step 3: Calculate the arithmetic mean using the following

formula:
EXAMPLE 16
Plots in a housing colony come in only three sizes: 100 sq. metre, 200
sq. meters and 300 sq. metre and the number of plots are respectively
200, 50 and 10. Calculate the mean plot size in the housing colony by
step-deviation method. (3 marks)
Solution:
Plot Size in sq. metre (X) No. of plots (f) d′ = (X – 200)/100 fd′
100 200 –1 – 200
200 50 0 0
300 10 +1 10
260 – 190
Mean plot size

X= A+
Σfd ′
Σf
× c = 200 +
−190
260 ( )
× 100 = 200 − 73.08 = 126.92 sq. metre
In case of Continuous Series, class intervals are given. The
process of calculating arithmetic mean in case of continuous
series is same as that of a discrete series.
The only difference is that the mid-points of various class
intervals are taken.
Direct Method
Step 1: Obtain mid values or each class denoted by ‘m’
Step 2: Obtain Σfm and apply the direct method formula:
EXAMPLE 17
Calculate average marks of the following students by

using direct method: (3 marks)
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70
No. of
5 12 15 25 8 3 2
Students
Solution:
Computation of Average Marks for Exclusive
Class Interval by Direct Method
Mark (X) No. of students (f) Mid value (m) fm
(1) (2) (3) (4) = (2) × (3)
0-10 5 5 25
10-20 12 15 180
20-30 15 25 375
30-40 25 35 875
40-50 8 45 360
50-60 3 55 165
60-70 2 65 130
70 2,110
Σfm 2,110
=
X = = 30.14
Σf 70
Therefore, Average marks of 70 students is 30.14.
Assumed Mean Method
Step 1: Obtain mid values for each class denoted by m.
Step 2: Obtain d′ = m – A
Step 3: Since frequency (f) of each item is given here,
we multiply each deviation (d) by the frequency
to get fd. Then we get Σfd.
Step 4: The next step is to get the total of all
frequencies, i.e. Σf.
Step 5: Finally, the arithmetic mean is calculated by
using the following formula:
EXAMPLE 18
Calculate average marks of the following students by using

assumed mean method: (3 marks)
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70
No. of
5 12 15 25 8 3 2
Students
Solution:
Class Interval by Assumed Mean Method
Mark No. of students (f) Mid value d = m–35 fd
(X) (m)
(1) (2) (3) (4) (5) = (2) × (4)
0-10 5 5 – 30 – 150
10-20 12 15 – 20 – 240
20-30 15 25 – 10 – 150
30-40 25 35 0 0
40-50 8 45 10 80
50-60 3 55 20 60
60-70 2 65 30 60
70 – 340
X =A +
Σfd
Σf
=35 +
−340
70( )
=35 − 4.86 =30.14
Therefore, Average marks of 70 students is 30.14.
Step 1: Obtain mid values for each class denoted by m.
m−A
Step 2: Obtain d′ =
c
Step 3: We multiply each d′ by the frequency to get fd′.
Then we get Σfd′.
Step 4: The next step is to get the total of all frequencies,
i.e. Σf.
Step 5: Finally, the arithmetic mean is calculated by using
the following formula:
EXAMPLE 19
Calculate average marks of the following students by using

step deviation method: (3 marks)
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70
No. of
5 12 15 25 8 3 2
Students
Solution:
Class Interval by Step Deviation Method
Mark No. of students (f) Mid value d′ = m–35 fd′
(X) (m)
(1) (2) (3) (4) (5) = (2) × (4)
0-10 5 5 –3 – 15
10-20 12 15 –2 – 24
20-30 15 25 –1 – 15
30-40 25 35 0 0
40-50 8 45 1 8
50-60 3 55 2 6
60-70 2 65 3 6
70 – 34
′
Average marks of 70 students, X = A + Σfd × c = 35 + ( −34) × 10 = 30.14
Σf 70
Illustrations on
arithmetic mean
Illustration 1: Calculation arithmetic mean from the

following data: (3)
Marks 0-10 10-20 30-60 60-100

No. of Students 5 12 15 25
Solution: The class intervals are unequal but still to
Illustrations
simplify calculations we can take 5 as the common
factor (c).
Computation of mean by Step Deviation Method
Mark No. of students (f) Mid value d′ = fd′

(X) (m) m–45/5
0-10 5 5 –8 – 40
10-30 12 20 –5 – 60
30-60 25 45 0 0
60-100 8 80 +7 + 56
50 – 44
Average marks of 50 students

Illustration 2: Compute the average marks of all the
students of 50 school in a city. (4)
Mark (X) No. of students (f) Mid value (m)

More than 35 7 200
30-35 10 250
25-30 15 300
20-25 9 200
15-20 5 150
Less than 15 4 100
Solution: First we rewrite the given data in ascending
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order.
Marks No. of Average No. of Total No. of Mid d′ = m – fd′
students students in a students (f) value 27.5/5
schools (m)
10-15 4 100 400 12.5 –3 – 1,200
15-20 5 150 750 17.5 –2 – 1,500
20-25 9 200 1,800 22.5 –1 – 1,800
25-30 15 300 4,500 27.5 0 0
30-35 10 250 2,500 32.5 +1 + 2,500
35-40 7 200 1,400 37.5 +2 + 2,800
11,350 + 800
Therefore, average, marks of all the students of 50 schools

in the city is 27.85.
Illustration 3: Find the class intervals if the arithmetic
mean of the following distribution is 33 and assumed
mean is 35. (4)
Step deviations
(d′)
–3 –2 –1 0 +1 +2
Frequencies
(f)
5 10 25 30 20 10
Solution: Since all the step deviations show equal
Illustrations
Step deviations Frequencies fd′
(d′) (f)
–3 5 – 15
–2 10 – 20
–1 25 – 25
0 30 0
+1 20 + 20
+2 10 + 10
100 – 20
Σfd ′
X=A+ ×c
N
Substituting the values A = 35, = 33, N = 100,
Σfd′ = – 20, we get 33 =+

35 ( )
−20
100
×c
⇒ – 0.2c = 33 – 35 = –2 ⇒ c = 10.
Thus, the class size is 10.
Assumed mean lies in the mid value of the class
having 0 as step deviation.
10
The lower and upper limits of this class are: 35 − = 30
2
10
and 35 + = 40 , i.e. 30-40.
2
Therefore, the class intervals are:
0-10, 10-20, 20-30, 30-40, 40-50 and 50-60
Illustration 4: Find the missing frequency from the
following data if the man is 34: (4)
Marks 0-10 10-20 20-30 30-40 40-50 50-60
No. of students 5 15 20 ? 20 10
Solution: Let the missing frequency be x.
Illustrations
Marks No. of student (f) Mid point (m) fm
0-10 5 5 25
10-20 15 15 225
20-30 20 25 500
30-40 X 35 35x
40-50 20 45 900
50-60 10 55 550
70 + x 2,200 + 35x
Illustration 5: Following information pertains to the daily
income of 150 families. Calculate the arithmetic mean.
(NCERT) (4)
Income (in `) Number of families
More than 75 150
More than 85 140
More than 95 115
More than 105 95
More than 115 70
More than 125 60
More than 135 40
More than 145 25
Solution: Since cumulative frequencies are given, we first

find the frequencies for calculating the arithmetic mean.
Calculation of arithmetic mean by step deviation method
Income
Illustrations
No. of mid point d′ = fd′
(in `) families (f) (m) m–110/10
75-85 150–140 = 10 80 –3 – 30
85-95 140–115 = 25 90 –2 – 50
95-105 115–95 = 20 100 –1 – 20
105-115 95–70 = 25 110 0 0
115-125 70–60 = 10 120 +1 + 10
125-135 60–40 = 20 130 +2 + 40

135-145 40–25 = 15 140 +3 + 45
145-155 25 150 +4 + 100
150 + 95
Average daily income of a family,

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5.2
Median
Median is that positional value of the variable which
divides the distribution into two equal parts, one part
comprises all values greater than or equal to the median
value and the other comprises all values less than or
equal to it.
The Median is the “middle”element when the data
set is arranged in order of the magnitude.
Suppose we have the following observation in a data set:
5, 7, 6, 1, 8,10, 12, 4, and 3.
Arranging the data, in ascending order we have:
1, 3, 4, 5, 6, 7, 8, 10, 12
The “middle score” is 6, so the median is 6.
Half of the scores are larger than 6 and half of the scores
are smaller.
SinceTopthe Tip
median is determined by the position of different values,
it remains unaffected if, say, the size of the largest value increases.
For example, in the above data if 12 is replaced by 20, the value of
median is unaffected. The median will be 6 itself.
Median for Ungrouped Data
When the number of observations is an odd number
The median can be easily computed by arranging the data in

ascending order (from smallest to largest) and finding out
the middle value.
In order to calculate median it is important to know the
position of the median i.e. item/items at which the median
lies. The position of the median can be calculated by the
following formula:
where N = number of items
The above formula gives the position of the median in an
ordered array, not the median itself. Median is computed
by the formula:
When
When the
thenumber
numberofofobservations
observationsis an even
is an number
even number
If there are even numbers in the data, there will be two

observations which fall in the middle. The median in this
case is computed as the arithmetic mean of the two middle
values. However, the same formula for calculating median
shall apply.
In case of Discrete series
( )
th
N +1
In case of discrete series, the position of median, item
2
i.e. can be located through cumulative frequency.
The corresponding value at this position is the value of
median.
Steps for calculating median — Discrete series
Step 1: Arrange the data in ascending or descending order.
Step 2: Find out the cumulative frequencies.
( )
th
N +1
Step 3: Median = size of items, where N = Σf
2
Step 4: The value whose cumulative frequency is equal to
N +1
2
or next higher to that, is the median value.
In case of Continuous series
In case of continuous series, we have to locate the median
( )
th
N
class where 2item lies.
The median can then be obtained by using the following
formula:
where,
L = lower limit of the median class
c.f. = cumulative frequency of the class preceding the
median class
f = frequency of the median class
h = magnitude of the median class interval
1. Top Tips
In case of continuous series, we have to locate the median class
() ( ) item] lies.
th th
N N+1
where item [not
2 2
2. For calculation of median of grouped data in case of continuous
series, no adjustment is required if frequency is of unequal size
or magnitude.
Median, as a measure of central tendency, is not sensitive to all the values in the
series. It concentrates on the values of the central items of the data.
Illustrations on median
Illustration 1: The size of land holdings of 380 families in

a village is given below. Find the median size of land
holdings. Also interpret the result. NCERT (4)
Solution:
Illustrations
th th
Median class is the value of ÊË N ˆ¯ item = ÊË380 ˆ¯ item = 190th item
2 2
of the series, which lies in 200–300 class interval.
Interpretation: The median size of land holdings is 241.22

acres. This means that 50% of the families have land
holdings of size less than or equal to 241.22 acres and 50%
of the remaining families have land holdings of size more
than or equal to 241.22 acres.
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5.3
Mode
The most typical value of a series or the value around
which maximum concentration of items occurs is
called the mode of the series.
For example, a manufacturer would like to know the size
of shoes that has maximum demand or style of the shirt
that is more frequently demanded. Here, Mode is the
most appropriate measure.
The word mode has been derived from the French word “la Mode” which
signifies the most fashionable values of a distribution, because it is repeated the
highest number of times in the series.
Mode is the most frequently observed data value. It is
denoted by Mo.
Consider the data set 1, 2, 3, 4, 4, 5.
The mode for this data is 4 because 4 occurs most
frequently (twice) in the data.
In case of Ungrouped Data
The value which occurs maximum number of times
is the modal value.
Example 24
Calculate the mode from the following data of the

marks obtained by 10 students: (1 mark)
10, 27, 24, 12, 27, 27, 20, 18, 15, 30
Solution: Since the value 27 occurs the maximum number of
times (thrice), therefore the modal marks = 27
In case Grouped Data
Discrete series
In a discrete series, quite often mode can be determined just
by inspection, i.e., by looking to that value of the variable
which has the highest frequency. In other words, mode is that
value which occurs the maximum number of times.
Example 25
Calculate the mode from the following data: (1 mark)

Variable 10 20 30 40 50
Frequency 2 8 20 10 5
Solution: Since the maximum frequency is 20, the value of

mode is 30.
 Top Tip
Mode is not necessarily unique, unlike
Arithmetic Mean and Median.
In example 25, as there is a unique value of mode, the data is unimodal.
But, the mode is not necessarily unique, unlike arithmetic mean and
median.
• It may be possible to have data with two modes (called bi-
modal data).
• The data may also have more than two modes (called multi-
modal data).
• It may be possible that there may be no mode if no value
appears more frequent than any other value in the distribution.
For example, in a series 1, 1, 2, 2, 3, 3, 4, 4, there is no mode.
Grouping Method
Under this method, grouping of the data is done by preparing
a Grouping Table consisting of 6 columns, in addition to a
column for the values of the variable.
 In column I, the highest frequency is marked or put in a
circle.
 In column II, frequencies are grouped in two’s. Find out
their total and mark the highest total or put it in a circle.
 In column III, leave the first frequency and then group
the remaining in two’s. Find out their total and mark the
highest total or put it in a circle.
 In column IV, frequencies are grouped in three’s. Find
out their total and mark the highest total or put it in a
circle.
 In column V, leave the first frequency and then group
the remaining in three’s. Find out their total and mark
the highest total or put it in a circle.
 In column VI, leave the first two frequencies and then
group the remaining in three’s. Find out their total and
mark the highest total or put it in a circle.
The highest frequency total in each of the six columns is
identified and analysed in the Analysis Table, to determine
mode.
Continuous series
In case of continuous frequency distribution, modal class is

the class with largest frequency. Mode can be calculated
by using the formula:
where,
L = lower limit of the modal class
D1 = difference between the frequency of the modal
class and the frequency of the class preceding the
modal class (ignoring signs).
D2 = difference between the frequency of the modal class
and the frequency of the class succeeding the modal
class (ignoring signs).
h= class width of the distribution.
 Note
Conditions for calculating Mode in case of
continuous series
• Class intervals must be of equal width.
• Series must be an exclusive series.
• If mid-points are given, class intervals must be obtained.
• If cumulative frequency distribution (‘less than’ or ‘more than’) is
given, it must be converted into a simple frequency distribution.

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Illustrations on mode
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5.4
Relative Position of
Arithmetic Mean, Median
and Mode
Symmetrical/ normal Asymmetrical/ skewed
distribution distribution
In case of symmetrical In case of symmetrical
distribution: distribution:
Mean = Median = Mode Mode = 3 Median – 2 Mean

Suppose Arithmetic Mean = The median is always between
Me, Median = Mi and Mode = Mo arithmetic mean and the mode.
Me = M i = Mo Me > Mi > Mo or Me > Mi > Mo
Y
X
Mean
Median
Mode
Symmetric Distribution
Y Y
X X
Mode Median Mean Mean Median Mode
Positively Skewed or Right Skewed Distribution Negatively Skewed or Left Skewed Distribution
Example 29
In a moderately asymmetrical distribution, the mode and mean

are 32.1 and 35.4 respectively. Find out the value of Median.
(1 mark)
Solution: Mode = 3 Median – 2 Mean
⇒ 32.1 Median – 2 × 35.4 or,
3 Median = 32.1 + 70.8 = 102.9
⇒ Median = 102.9/3 = 34.3
Example 30
For a skewed distribution, median = 20.6 and mode = 26. Find

the mean. (1 mark)
Solution: Mode = 3 Median – 2 Mean
⇒ 26 = 3 × 20.6 – 2 Mean
or, 2 Mean = 61.8 – 26 = 35.8
⇒ Mean = 35.8/2 = 17.9
Example 31
For a symmetrical distribution, median = 20. Find the value of

Arithmetic mean and Mode. (1 mark)
Solution: For a symmetrical distribution, Mean = Median = Mode
Since median = 20, therefore arithmetic mean = mode = 20
Comparison of Arithmetic Mean,
Median and Mode
 Arithmetic mean is the most commonly used
average. It is simple to calculate and is based on all
the observations. But it is unduly affected by the
presence of extreme items.
 Mode is generally used to describe the qualitative
data.
 Median and mode can be easily computed
graphically but Arithmetic mean cannot be
computed graphically.
 In case of open-ended distribution Median and
mode can also be easily computed.
 Note
It is important to select an appropriate average depending upon the
purpose of analysis and the nature of the distribution.

Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Miscellaneous
Illustrations
Question 1
There are several statistical measures of central tendency
or ____________. Fill in the blank.

Answer 1
averages

Question 2
The three most commonly used averages are _____.
(a) Arithmetic Mean, Median and Mode
(b) Arithmetic Mean, Geometric Mean and Harmonic Mean
(c) Median, Lower quartile and Upper quartile
(d) All of these

Answer 2
(a) Arithmetic Mean, Median and Mode

Question 3
________ is the most commonly used measure of
central tendency. (Choose the correct alternative)
(a) Arithmetic Mean
(b) Median
(c) Quartile
(d) Mode

Answer 3
(a) Arithmetic Mean

Question 4
Arithmetic mean is defined as the sum of the values of all
observations divided by the _____________.
Fill in the blank.

Answer 4
number of observations

Question 5
The following data shows marks of a student in a class
in four subjects except economics:
40, 50, 55, 58
How many marks did the student score in economics
such that the average marks is 56.2?
(a) 78
(b) 56.2
(c) 50.75
(d) 100
Answer 5
(a) 78

Question 6
The sum of deviations of items about arithmetic mean is
always equal to________.
(a) one
(b) Zero
(c) Infinity
(d) None of these

Answer 6
(b) Zero

Question 7
Average rainfall of a city from Monday to Saturday is 0.3
inch. Due to heavy rainfall on Sunday the average rainfall
for the week increased to 0.5 inch. What was the rainfall
on Sunday? (Choose the correct alternative)
(a) 0.2 inch.
(b) 1.7 inch.
(c) 0.3 inch.
(d) 0.5 inch.

Answer 7
7. (b) 1.7 inch.
Hint: Total rainfall for 6 days (Monday to
Saturday) = 0.3 × 6 = 1.8 inch.
Total rainfall for 7 days (including Sunday)
= 0.5 × 7 = 3.5 inch.
Rainfall on Sunday = 3.5 – 1.8 = 1.7 inch.

Question 8
The average weight of a group 25 boys was calculated to
be 52 kg. It was later discovered that the weight of a boy
was wrongly read as 45 kg instead of 54 kg. What is the
correct average weight? (Choose the correct alternative)
(a) 52.36 kg
(b) 48.2 kg
(c) 49.84 kg
(d) 51.64 kg

Answer 8
(a) 52.36 kg
Hint: (52 × 25 – 45 + 54)/25 = 52.36

Question 9
The average marks in statistics of 10 students of a class
were 81. A new student took admission who scored 92
marks whereas two existing students left the college who
scored 56 and 36 marks. What is the new average marks?
(a) 81 marks
(b) 90 marks
(c) 82.8 marks
(d) 79.7 marks

Answer 9
(b) 90 marks
Hint: (81 × 10 + 92 – 56 – 36 )/9 = 90

Question 10
For a skewed distribution, median = 30 and mode = 35.
What is the value of the mean?
(a) 35
(b) 30
(c) 32.5
(d) 27.5

Answer 10
(d) 27.5
Hint: Mode =3 Median – 2 Mean
35 = 3 × 30 – 2 Mean
2 Mean = 90 – 35 = 55
Mean = 55/2 = 27.5

Question 11
For a symmetrical distribution, median = 30 and mode =
30. What is the value of the mean?
(a) 0
(b) 30
(c) 60
(d) None of these

Answer 11
(b) 30
Hint: For a symmetrical distribution,
mean = median = mode.

Question 12
__________ is affected by extreme values. Any large
value, on either end, can push it up or down.
(a) Arithmetic Mean
(b) Weighted Mean
(c) Median
(d) Mode

Answer 12
(a) Arithmetic Mean

Question 13
If the number of observations in the data is more and/or
figures are large, it is difficult to compute arithmetic
mean by___________. (Choose the correct alternative)
(a) direct method
(b) assumed mean method
(c) Step deviation method
(d) All of these

Answer 13
(a) direct method

Question 14
Any value, whether existing in the data or not, can be
taken as assumed mean. However, in order to simplify
the calculation, __________ in the data can be selected
as assumed mean. Fill in the blank.

Answer 14
centrally located value

Question 15
In the following formula for calculating mean, what is
‘c’ called?
Sd ¢
X = A+ ´c
N

Answer 15
Common factor

Question 16
Under Step Deviation Method of calculating
arithmetic mean, the deviations are divided by the
_____ which simplifies the calculation.
Fill in the blank.

Answer 16
common factor ‘c’

Question 17
The process of calculating arithmetic mean in case of
continuous series is same as that of a discrete series. The
only difference is that the __________ of various class
intervals are taken. Fill in the blanks.

Answer 17
mid-points/mid values

Question 18
The ________ is the “middle”element when the data set
is arranged in order of the magnitude.
(a) Mean
(b) Median
(c) Quartile
(d) Mode

Answer 18
(b) Median

Question 19
Median is unaffected if the size of the largest value
increases. True/ False? Give reason.

Answer 19
True: Since the median is determined by the position of
different values, it remains unaffected if, say, the size of
the largest value increases.

Question 20
In order to calculate median it is important to know
the _____ of the median, which is calculated by the
formula ______. Fill in the blanks.

Answer 20
th
position, (N + 1) item
2

Question 21
In case of discrete series the position of median, i.e.
( )
th
N +1
item can be located through ______. Here, N =
2
______. Fill in the blanks.

Answer 21
cumulative frequency, Σf

Question 22
In case of continuous series you have to locate the
median class where ______ item lies. Fill in the blank.

Answer 22
( )
th
N
2

Question 23
For calculating _______ no adjustment is required if
frequency is of unequal size or magnitude.
(a) Mean
(b) Median
(c) Mode
(d) All of these

Answer 23
(b) Median

Question 24
The value around which maximum concentration of
items occurs is called the ______ of the series.
(a) mean
(b) weighted mean
(c) median
(d) mode

Answer 24
(d) mode

Question 25
In a discrete series, mode can be determined by looking
to that value of the variable which has the _________
frequency. Fill in the blank.

Answer 25
highest

Question 26
The mode is not necessarily unique, unlike
arithmetic mean and median.
True/ False? Give reason.

Answer 26
True: It may be possible to have data with two modes
(called bi-modal data). The data may also have more
than two modes (called multi-modal data). It may be
possible that there may be no mode if no value appears
more frequent than any other value in the distribution.

Question 27
The following is the histogram constructed from the
frequency distribution of a variable. What may such data
be called? (Choose the correct alternative)
(a) Unimodal data (b) Bi-modal data

(c) Multi-modal data (d) All of these
Answer 27
(a) Unimodal data

Question 28
In case of a _______ distribution, the values of Mean,
Median and Mode are equal. Fill in the blank.

Answer 28
symmetrical

Question 29
The _______ is always between the ___________ and
the______ . (mode/arithmetic mean/median)
Fill in the blanks with correct words.

Answer 29
median, arithmetic mean, mode

Question 30
In case of asymmetrical/skewed distribution, the relative
magnitude of the three are:
(a) Me = Mi = Mo
(b) Me < Mi < Mo
(c) Me > Mi > Mo

Answer 30

Question 31
_________ is generally used to describe the qualitative
data. (Choose the correct alternative)
(a) Arithmetic mean
(b) Geometric mean
(c) Median
(d) Mode

Answer 31
(d) Mode

Question 32
__________ can be easily computed graphically.
(a) Arithmetic mean
(b) Median
(c) Mode

Answer 32
(d)Both (b) and (c)

Question 33
In case of open-ended distribution, __________ can also
be easily computed. (Choose the correct alternative)
(a) Arithmetic mean
(b) Median
(c) Mode

Answer 33

Question 34
Arithmetic mean cannot be calculated when open-end
classes are there. (True/False)

Answer 34
True

Question 35
Arithmetic mean is a rigidly defined value.
(True/False)

Answer 35
True

Question 36
Arithmetic mean can be used as an average in all
situations. (True/False)

Answer 36
False

Question 37
Arithmetic mean fulfils the condition: X × N = ΣX.
(True/False)

Answer 37
True

Question 38
Arithmetic mean can be located graphically. (True/False)

Answer 38
False

Question 39
Arithmetic mean is equal to median and mode when the
distribution is _______. Fill up the blank.

Answer 39
symmetric

Question 40
_______ is a single figure which represents a
frequency distribution. Fill up the blank.

Answer 40
An average or a measure of central tendency

Question 41
_______ is a value which is obtained by dividing the sum
of values of items by the number of items.
Fill up the blank.

Answer 41
Arithmetic mean

Question 42
Measures of central tendency for a given set of
observations measures.
(a) The scatterness of the observations
(b) The central location of the observations
(d) None of these

Answer 42
(b) The central location of the observations

Question 43
While computing the Arithmetic Mean from a grouped
frequency distribution, we assume that:
(a) The classes are of equal length
(b) The classes have equal frequency
(c) All the values of a class are equal to the mid-value of
that class
(d) None of these.

Answer 43
(c) All the values of a class are equal to the mid-value of
that class

Question 44
Usually _______ is the best measure of central tendency.
Fill in the blank.

Answer 44
Arithmetic Mean

Question 45
For open-end classification, which of the following is the
best measure of central tendency?
(a) Arithmetic Mean
(b) Geometric Mean
(c) Median
(d) Mode

Answer 45
(c) Median

Question 46
The presence of extreme observations does not affect
________. (Choose the correct alternative)
(a) Arithmetic Mean
(b) Median
(c) Mode
(d) All of these

Answer 46
(b) Median

Question 47
In case of an even number of observations which of the
following is median? (Choose the correct alternative)
(a) Any of the two middle-most value
(b) The simple average of these two middle values
(c) The weighted average of these two middle values
(d) None of these

Answer 47
(b) The simple average of these two middle values

Question 48
The most commonly used measure of central tendency is
_______. (Choose the correct alternative)
(a) Arithmetic Mean
(b) Median
(c) Mode
(d) All of these

Answer 48
(a) Arithmetic Mean

Question 49
Which one of the following is not uniquely defined?
(a) Arithmetic Mean
(b) Median
(c) Mode
(d) All of these

Answer 49
(c) Mode

Question 50
Weighted averages are considered when:
(a) The data are not classified
(b) The data are put in the form of grouped frequency
distribution
(c) All the observations are not of equal importance
(d) Both (a) and (c).

Answer 50
(c) All the observations are not of equal importance

Question 51
Which of he following measures of central tendency is
based on only fifty percent of the central values?
(a) Arithmetic Mean
(b) Median
(c) Mode

Answer 51
(b) Median

Question 52
What is the median for the following observations?
5, 8, 6, 9, 11, 4
(a) 6
(b) 7
(c) 8
(d) None of these

Answer 52
(b) 7

Question 53
What is the modal value for the numbers 5, 8, 6, 4, 10,
15, 18, 10? (Choose the correct alternative)
(a) 18
(b) 10
(c) 14
(d) None of these

Answer 53
(b) 10

Question 54
If there are two groups containing 30 and 20
observations and having 50 and 60 as arithmetic
means, then the combined arithmetic mean is:
(a) 55
(b) 56
(c) 54
(d) 52

Answer 54
(c) 54

Question 55
The number of measures of central tendency is:
(a) Two
(b) three
(c) four
(d) five

Answer 55
(b) three

Question 56
The algebraic sum of deviations of observations from
their arithmetic mean is:
(a) 2
(b) –1
(c) 1
(d) 0

Answer 56
(d) 0

Question 57
The sum of deviations of 8, 1, 6 from the arithmetic
mean is _______. Fill in the blank.

Answer 57
0

Question 58
The value of the middle most item when they are
arranged in order of magnitude is called _______.
(a) standard deviation
(b) mean
(c) mode
(d) median

Answer 58
(d) median

Question 59
Median is unaffected by extreme values. (True/False)

Answer 59
True

Question 60
Median of 2, 5, 8, 4, 9, 6, 71 is:
(a) 9
(b) 8
(c) 5
(d) 6

Answer 60
(d) 6

Question 61
The value which occurs with the maximum frequency is
called ____. (Choose the correct alternative)
(a) Median
(b) Mode
(c) Mean
(d) none of these

Answer 61
(b) Mode

Question 62
In formula of median for grouped frequency distribution
N is: (Choose the correct alternative)
(a) total frequency
(b) frequency density
(c) frequency
(d) cumulative frequency

Answer 62
(a) total frequency

Question 63
Mode of the observations 2, 5, 8, 4, 3, 4, 4, 5, 2, 4, 4 is:
(a) 3
(b) 2
(c) 5
(d) 4

Answer 63
(d) 4

Question 64
For the observations 5, 3, 6, 3, 5, 10, 7, 2 there are
______ modes. (Choose the correct alternative)
(a) 2
(b) 3
(c) 4
(d) 5

Answer 64
(a) 2

Question 65
Simple average is sometimes called _________.
(a) weighted average
(b) unweighted average
(c) relative average
(d) None of these

Answer 65
(b) unweighted average

Question 66
When a frequency distribution is given, the frequencies
themselves are treated as weights. (True/False)

Answer 66
True

Question 67
Each value is considered only once for _______. (simple
average/weighted average) Choose the correct option.

Answer 67
simple average

Question 68
Each value is considered as many times as it occurs for
_______. (simple average/weighted average)
Choose the correct option.

Answer 68
weighted average

Question 69
Multiplying the values of the variable by the
corresponding weights and then dividing the sum of
products by the sum of weights is _______. (simple
average/weighted average)

Answer 69
weighted average

Question 70
Simple and weighted averages are equal only
when _______ are equal. Fill in the blank.

Answer 70
weights

Question 71
________ is obtained on dividing the total of a set of
observations by their number. (simple
average/weighted average)
Think as you read 2.2

Answer 71
simple average

Question 72
Frequencies are generally used as:
(a) range
(b) weights
(c) Mean
(d) None of these

Answer 72
(b) weights

Question 73
The total of the deviations of a set of observations from
their Arithmetic Mean is always _______.
(a) 0
(b) 1
(c) –1
(d) None of these

Answer 73
(a) 0

Question 74
Deviation may be positive or negative or zero.
(True/False)

Answer 74
True

Question 75
Arithmetic Mean of 8, 1, 6 is:
(a) 5
(b) 6
(c) 4
(d) None of these

Answer 75
(a) 5

Question 76
________ can be calculated from a frequency
distribution with open end intervals.
(a) Median
(b) Mean
(c) Mode
(d) None of these

Answer 76
(a) Median

Question 77
The values of all items are taken into consideration in the
calculation of _______.
(a) Median
(b) Mean
(c) Mode
(d) None of these

Answer 77
(b) Mean

Question 78
The values of extreme items do not influence the average
in case of _______. (Choose the correct alternative)
(a) Median
(b) Mean
(c) Mode
(d) None of these

Answer 78
(a) Median

Question 79
When all values occur with equal frequency, there is no
_______. Fill in the blank.

Answer 79
mode

Question 80
_____ is equal to the value corresponding to cumulative
frequency. (Choose the correct alternative)
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 80
(c) Median

Question 81
________ is the value of the variable corresponding to
the highest frequency. (Choose the correct alternative)
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 81
(a) Mode

Question 82
The class in which mode belongs is known as:
(a) Median class
(b) Mean class
(c) Modal class
(d) None of these

Answer 82
(c) Modal class

Question 83
The formula of mode is applicable if classes are of
__________ width. (equal/unequal/equal or unequal)

Answer 83
equal or unequal

Question 84
For calculation of _______ we have to construct
cumulative frequency distribution.
(a) mode
(b) median
(c) Mean
(d) None of these

Answer 84
(b) median

Question 85
When the distribution is symmetrical, mean, median and
mode _________. (coincide/do not coincide)

Answer 85
coincide

Question 86
Mean, median and mode are equal for the ________.
(a) Binomial distribution
(b) Normal distribution
(c) Skewed distribution
(d) Asymmetric distribution

Answer 86
(b) Normal distribution

Question 87
_____ divides the total number of observations into two
equal parts. (Choose the correct alternative)
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 87
(c) Median

Question 88
The middle most value of a set of observations is
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 88
(c) Median

Question 89
The number of observations smaller than _______ is the
same as the number larger than it.
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 89
(c) Median

Question 90
_______ is the value of the variable corresponding to
cumulative frequency N/2.
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 90
(c) Median

Question 91
Rank of median is: (Choose the correct alternative)
(a) (n + 1)/2
(b) (n + 1)/4
(c) 3(n + 1)/4
(d) None of these

Answer 91
(a) (n + 1)/2

Question 92
________ is equal to value corresponding to cumulative
frequency (N + 1)/2 from simple frequency distribution.
Fill up the blank.

Answer 92
Median

Question 93
For grouped frequency distribution _________ is equal
to the value corresponding to cumulative frequency N/2.
Fill up the blank.

Answer 93
Median

Question 94
Mean for the data 6, 4, 1, 6, 5, 10, 3 is:
(a) 7
(b) 5
(c) 6
(d) None of these

Answer 94
(b) 5

Question 95
Arithmetic mean of 2, 6, 4, 1, 8, 5, 2 is _______.
(a) 4
(b) 3
(c) 5
(d) None of these

Answer 95
(a) 4

Question 96
A measure of central tendency tries to estimate the
(a) central value
(b) lower value
(c) upper value
(d) None of these

Answer 96
(a) central value

Question 97
Measures of central tendency are also known as ______.

Answer 97
Averages

Question 98
Mean is influenced by extreme values. (True/False)

Answer 98
True

Question 99
Mean of 6, 7, 11, 8 is _____.
(a) 11
(b) 6
(c) 7
(d) 8

Answer 99
(d) 8

Question 100
The sum of differences between the actual values and the
mean is:
(a) 2
(b) –1
(c) 0
(d) 1

Answer 100
(c) 0

Question 101
When the algebraic sum of deviations from the
arithmetic mean is not equal to zero, the figure of
arithmetic mean is not correct.
(True/False)

Answer 101
True

Question 102
Half of the numbers in an ordered set have values less
than the ________ and half will have values greater than
the ________. (Choose the correct alternative)
(a) mean, median
(b) median, median
(c) mode, mean
(d) None of these

Answer 102
(b) median, median

Question 103
The median of 27, 30, 26, 44, 42, 51, 37 is:
(a) 30
(b) 42
(c) 44
(d) 37

Answer 103
(d) 37

Question 104
For an even number of values the median is the:
(a) average of two middle values
(b) middle value
(c) both (a) and (b)
(d) None of these

Answer 104
(a) average of two middle values

Question 105
In the case of a continuous frequency distribution, the
size of the _________ item indicates class interval in
which the median lies. (Choose the correct alternative)
(a) (n – 1)/2th
(b) (n + 1)/2th
(c) n/2th
(d) None of these

Answer 105
(c) n/2th

Question 106
Modal group is: (Choose the correct alternative)

(a) 66–68
(b) 69–71
(c) 63–65
(d) None of these

Answer 106
(a) 66–68

Question 107
__________ always lies in between the arithmetic mean
and mode. Fill in the blank.

Answer 107
Median

Question 108
For ordering shoes of various sizes for resale, a
_________ size will be more appropriate.
(a) median
(b) modal
(c) mean
(d) None of these

Answer 108
(b) modal

Question 109
__________ is called a positional measure.
(a) Median
(b) Mode
(c) Mean
(d) None of these

Answer 109
(a) Median

Question 110
50% of actual values will be below and 50% of will be
above _______. (Choose the correct alternative)
(a) mode
(b) median
(c) mean
(d) None of these

Answer 110
(b) median

Question 111
Extreme values have _______ effect on mode.
(a) high
(b) low
(c) no
(d) None of these

Answer 111
(d) None of these

Question 112
Extreme values have _______ effect on median.
(a) high
(b) low
(c) no
(d) None of these

Answer 112
(c) no

Question 113
________ is used when representation value is required
& distribution is asymmetric.
(a) Mode
(b) Mean
(c) Median
(d) None of these

Answer 113
(b) Mean

Question 114
The cumulative frequency distribution is used for:
(a) Median
(b) Mode
(c) Mean
(d) None of these

Answer 114
(a) Median

Question 115
“The sum of deviations from the mean is zero.” – is the
mathematical property of mean. (True/False)

Answer 115
True

Question 116
“The mean of the two samples can be combined.” – is
the mathematical property of mean. (True/False)

Answer 116
True

Question 117
“Choices of assumed mean does not affect the actual
mean.” (True/False)

Answer 117
True

Question 118
“In a moderately asymmetric distribution mean can be
found out from the given values of median and mode.”
(True/False)

Answer 118
True

Question 119
Mean of 0, 3, 5, 6, 7, 9, 12, 0, 2 is:
(a) 4.9
(b) 5.7
(c) 5.6
(d) None of these

Answer 119
(a) 4.9

Question 120
Median of 15, 12, 6, 13, 12, 15, 8, 9 is:
(a) 13
(b) 8
(c) 12
(d) 9

Answer 120
(c) 12

Question 121
Median of 0.3, 5, 6, 7, 9, 12, 0, 2 is:
(a) 7
(b) 6
(c) 3
(d) 5

Answer 121
(d) 5

Question 122
Mode of 0, 3, 5, 6, 7, 9, 12, 0, 2 is:
(a) 6
(b) 0
(c) 3
(d) 5

Answer 122
(b) 0

Question 123
Mode of 15, 12, 5, 13, 12, 15, 8, 8, 9, 9, 10, 15 is:
(a) 15
(b) 12
(c) 8
(d) 9

Answer 123
(a) 15

Question 124
Median of 40, 50, 30, 20, 25, 35, 30, 30, 20, 30 is:
(a) 25
(b) 30
(c) 35
(d) None of these

Answer 124
(b) 30

Question 125
Mode of 40, 50, 30, 20, 25, 35, 30, 30, 20, 30 is:
(a) 25
(b) 30
(c) 35
(d) None of these

Answer 125
(b) 30

Question 126
Mean of 25, 32, 43, 53, 62, 59, 48, 31, 24, 33 is:
(a) 44
(b) 43
(c) 42
(d) 41

Answer 126
(d) 41

Question 127
If the same amount is added to or subtracted from all the
values, the mean shall increase or decrease by the
________ amount. (Choose the correct alternative)
(a) big
(b) small
(c) same
(d) None of these

Answer 127
(c) same

Question 128
If each item is reduced by 15 Arithmetic Mean is
_________. (Choose the correct alternative)
(a) reduced by 15
(b) increased by 15
(c) reduced by 30
(d) reduced by 7.5

Answer 128
(a) reduced by 15

Question 129
For finding Arithmetic Mean in step-deviation method,
the class intervals should be of ____. Fill in the blank.

Answer 129
equal length

Question 130
The Arithmetic Mean of 1, 3, 5, 6, x, 10 is 6 . The value
of x is _______. Fill in the blank.

Answer 130
11

Question 131
For the values of a variable 5, 2, 8, 3, 7, 4, the median is

Answer 131
4.5

Question 132
The value of mode of the following distribution is

Answer 132
5

Question 133
The class having maximum frequency is called:
(a) modal class
(b) median class
(c) mean class
(d) All of these

Answer 133
(a) modal class

Question 134
For determination of mode, the class intervals should be
______. (Choose the correct alternative)
(a) overlapping
(b) maximum
(c) minimum
(d) None of these

Answer 134
(a) overlapping

Question 135
For the values of a variable 3, 1, 5, 2, 6, 8, 4 the median
is: (Choose the correct alternative)
(a) 3
(b) 5
(c) 4
(d) None of these

Answer 135
(c) 4

Question 136
The median of the numbers 11, 10, 12, 13, 9 is _______.
(a) 12.5
(b) 12
(c) 10.5
(d) 11

Answer 136
(d) 11

Question 137
The mode of the numbers 7, 7, 7, 9, 10, 11, 11, 11, 12 is:
(a) 11
(b) 12
(c) 7
(d) Both (a) and (c)

Answer 137

Question 138
Construction of a cumulative frequency table is useful in
determining the ________.
(a) mean
(b) median
(c) mode
(d) All of these

Answer 138
(b) median

Question 139
Find the mean of the following distribution is _______.
Fill up the blank.

Answer 139
5.5

Question 140
The maximum bowling speeds, in km per hour, of 33
players at a cricket coaching centre are given as follows.
The median bowling speed is ____________.
Fill up the blank.

Answer 140
109.17 km/h

Question 141
The weight of coffee in 70 packets are shown in the
following table. The modal weight is ____________.
Fill up the blank.

Answer 141
201.7 kg

Question 142
Consider the following frequency distribution of the
heights of 60 students of a class:
The sum of the lower limit of the modal class and upper limit
of the median class is: (Choose the correct alternative)
(a) 310
(b) 315
(c) 320
(d) 330
Answer 142
(b) 315

Question 143
Σfd
In the formula X= A + , for finding the mean of
Σf
grouped data d is deviation from A of:
(a) lower limits of the classes
(b) upper limits of the classes
(c) mid points of the classes
(d) frequencies of the class marks

Answer 143
(c) mid points of the classes

Question 144
While computing mean of grouped data, we assume that
the frequencies are: (Choose the correct alternative)
(a) evenly distributed over all the classes
(b) centred at the class marks of the classes
(c) centred at the upper limits of the classes
(d) centred at the lower limits of the classes

Answer 144
(b) centred at the class marks of the classes

Question 145
For the following distribution:
The sum of lower limits of the median class and modal

class is:
(a) 15
(b) 25
(c) 30
(d) 35
Answer 145
(b) 25

Question 146
Consider the following frequency distribution:
The upper limit of the median class is:

(a) 17
(b) 17.5
(c) 18
(d) 18.5

Answer 146
(b) 17.5

Question 147
For the following distribution:
The Modal class is: (Choose the correct alternative)

(a) 10-20
(b) 20-30
(c) 30-40
(d) 50-60

Answer 147
(c) 30-40

Question 148
Consider the data:
The difference of the upper limit of the median class and

the lower limit of the modal class is:
(a) 0
(b) 19
(c) 20
(d) 38
Answer 148
(c) 20

Question 149
The times, in seconds, taken by 150 atheletes to run a
110 m hurdle race are tabulated below:
The number of atheletes who completed the race in less

then 14.6 seconds is: (Choose the correct alternative)
(a) 11
(b) 71
(c) 82
(d) 130
Answer 149
(c) 82

Question 150
Consider the following distribution:
The frequency of the class 30-40 is:

(a) 3 (b) 4
(c) 48 (d) 51
Answer 150
(a) 3

Question 151
Is it correct to say that an ogive is a graphical
representation of a frequency distribution? Give reason.

Answer 151
Graphical representation of a frequency distribution may
not be an ogive. It may be a histogram. An ogive is a
graphical representation of cumulative frequency
distribution.

Question 152
The median of an ungrouped data and the median
calculated when the same data is grouped are always the
same. Do you think that this is a correct statement?
Give reason.

Answer 152
Not always, because for calculating median of a grouped
data, the formula used is based on the assumption that
the observations in the classes are uniformly distributed
(or equally spaced).

Question 153
In calculating the mean of grouped data, grouped in
classes of equal width, we may use the formula , where
A is the assumed mean. a must be one of the mid-points
of the classes. Is the last statement correct?
Justify your answer.

Answer 153
Not necessary, the mean of the data does not depend on
the choice of a (assumed mean).

Question 154
Will the median class and modal class of grouped data
always be different? Justify your answer.

Answer 154
Not always. It depends on the data.

Measures of Central Tendency

Question 1
For a skewed distribution, if arithmetic mean is 40
and median is 48 then mode is 64.
True/False? Give reason. (1 mark)

Answer 1
True; For a skewed distribution, Mode = 3 Median
– 2 Mean = 3 × 48 – 2 × 40 = 144 – 80 = 64

Question 2
The most common used measure of central
tendency is:
(a) Median
(b) Mode
(c) Arithmetic mean
(d) Quartile

Answer 2
(c) Arithmetic mean

Question 3
Sum of deviations about mean is:
(a) Zero
(b) One
(c) Minimum
(d) Maximum

Answer 3
(a) Zero

Question 4
The most suitable average for qualitative
measurement is:
(a) Arithmetic Mean
(b) Median
(c) Mode
(d) Weighted Mean

Answer 4
(c) Mode

Question 5
Which average is affected mostly by the extreme
values?
(a) Arithmetic Mean
(b) Median
(c) Mode
(d) All of these

Answer 5
(a) Arithmetic Mean

Question 6
In the following frequency distribution, find the
missing frequency.
The arithmetic mean of the distribution if 52.

Answer 6
Let the missing frequency be ‘x’.
Calculation of Missing Frequency

Question 7
What is ‘weighted arithmetic mean’? When and why
is it calculated?
(3 marks)

Question 8
What is ‘weighted arithmetic mean’? When and why
is it calculated? (4 marks)
(a) The sum of deviations of items about arithmetic
mean is always equal to zero.
(b) Arithmetic Mean is affected by extreme values.
Any large value, on either end, can push it up
or down.

Question 9
Find the median of the following data. Also,
interpret the result.
(4 marks)

Question 10
Calculate arithmetic mean for the following data: X:
4 6 8 10 12
(a) If mean is increased by 2, then what happens to
the sum of the observations?
(b) If first three items increase by 2, then what
should be the sum of the last two items, so that
mean remains the same?
(c) Replace the value 12 by 96. What happens to
the arithmetic mean? Comment. (6 marks)
Answer 10

Measures of Central Tendency

Question 1
Which of the following is a positional average?
(a) Arithmetic mean
(b) Mode
(c) Median
(d) All of these

Answer 1
(c) Median

Question 2
Five students obtained 100, 200, 300, 400 and
500 marks. What is the mean marks?
(a) 300
(b) 400
(c) 250
(d) 350

Answer 2
(a) 300

Question 3
In India, shoe-size of most of the women is no. 7.
Which measure of central tendency represents it?
(a) Mean
(b) Median
(c) Mode
(d) Quartile

Answer 3
(c) Mode

Question 4
Find the correct option from the following:
(a) 3 Median = Mode + 2 Mean
(b) Mode= 2 Median – 3 Mean
(c) Median = 3 Mode – 2 Mean
(d) Mean = 3 Median – 2 Mode

Answer 4
(a) 3 Median = Mode + 2 Mean

Question 5
The values of all items are taken into consideration
in the calculation of:
(a) Mean
(b) Median
(c) Mode
(d) Quartile

Answer 5
(a) Mean

Question 6
Calculate arithmetic mean using assumed mean
method with the help of following data:

Answer 6
Arithmetic mean using assumed mean method
Thus, the arithmetic mean of the data is 23.

Question 7
Which average or measure of central tendency sho-
uld be used summarise the data? Explain.
(3 marks)

Answer 7

Question 8
Find the median of the following data. Also, inter-
pret the result. (4 marks)

Answer 8
40 years

Question 9
Calculate the value of mode for the following data
by grouping method:
(4 marks)

Answer 9
The values 12 and 14 have the highest frequency
of 9. So, value of mode will be calculated by gro-
uping method.
Grouping Table

Analysis Table
The value 12 occurs maximum number of times (5

times). Therefore, the value of mode is 12.
Question 10
Calculate median and mode of the following data
and hence using the emperical relationship between
the measures of central tendency find the value of
arithmetic mean.
(6 marks)

Answer 10
Median = 36.7, Mode = 36

Measures of Dispersion
Revised CBSE Syllabus for 2021 Exam

 absolute dispersion standard deviation); relative
dispersion co-efficient of variation)
Standard Deviation and
Coefficient of Variation
Standard Deviation
Standard Deviation is the positive square root of
the mean of squared deviations from mean.
 Note
Standard deviation is calculated on the basis of the mean only.
Suppose there are five values x1, x2, x3, x4 and x5.
Step 1: Their mean is calculated.
Step 2: Then deviations of the values from mean
are calculated.
Step 3: These deviations are then squared.
Step 4: The mean of these squared deviations is
the variance.
Step 5: Positive square root of the variance is the
standard deviation, i.e. 𝜎 = 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒
Coefficient of Variation
For Standard Deviation, the relative measure of
dispersion is called Coefficient of Variation, calculated
as below:
 Top Tips
1. Coefficient of Variation is usually expressed in percentage
terms and is the most commonly used relative measure of
dispersion.
2. Coefficient of Standard Deviation = Standard Deviation/
Mean (It is not expressed in percentage terms.)
Ungrouped Data/Individual Series
Four alternative methods are available for the
calculation of standard deviation of individual values.
All these methods result in the same value of standard
deviation. These are:
1. Actual Mean Method
2. Assumed Mean Method
3. Direct Method
4. Step-Deviation Method
Example 14
Calculate the standard deviation and coefficient of

variation: 5, 10, 25, 30, 50 (3 marks)
Solutio n: Actual Mean Method:
X d2
5 –19 361
10 –14 196
25 +1 1
30 +6 36
30 +26 676
0 1270
Standard Deviation,
Coefficient of Variation (C.V.)
=
Assumed Mean Method:
For the same values, deviations may be calculated from
any arbitrary value A such that d = X – A. Take A = 25.
X d (X – 25) d2
5 –20 400
10 –15 225
25 0 0
30 +5 25
50 +25 625
–5 1275
Note that the sum of deviations from a value other than

actual mean will not be equal to zero.
 Top Tips
Standard deviation is Independent of Origin.
Standard deviation is not affected by the value of the
constant from which deviations are calculated. The value
of the constant does not figure in the standard deviation
formula. Thus, Standard deviation is Independent of
Origin.

=
Direct Method:
Standard Deviation can also be calculated from the
values directly, i.e., without taking deviations.
X X2
5 25
10 100
25 625
30 900
30 2500
120 4150
Coefficient of Variation (C.V.) =

 Note
Step-deviation Method:
Deviations can be calculated from an arbitrary value
and then divided by a common factor (c).
X d = (X – 25) d′ = (d/5) d′2
5 -20 -4 16
10 -15 -3 9
25 0 0 0
30 +5 +1 1
50 +25 +5 25
-1 51

 Top Tip
Standard deviation is not independent of scale.

Standard deviation is not independent of scale.
Thus, if the values or deviations are divided by a
common factor, the value of the common factor
is used in the formula to get the value of standard
deviation.
Do it yourself 14
Following are the marks obtained by 10 students of

a class. Calculate standard deviation and coefficient of
standard deviation: (3 marks)
Marks 12 8 17 13 15 9 18 11 6 1
[Ans. Standard Deviation = 4.94 and its coefficient

= 0.45]
Solution of Do it yourself 14
L= 80, ∑ = 20, Range = L-S = 80 – 20 = 60
L −S
Coefficient of range = L+S = = (80 – 20)/(80+20)= 60/100 = 0.6
Discrete Series (Grouped Data)
Actual mean method:
Assumed mean method:
Direct method:
Step deviation method:

Example 15
Calculate standard deviation and coefficient of

variation: (4 marks)
Marks 5 10 15 20
No. of students 2 1 4 3
Solution: Actual Mean Method:
Marks No. of fX d = (X – 14) d2 fd2
(X) students
(f)
5 2 10 -9 81 162
10 1 10 -4 16 16
15 4 60 +1 1 4
20 3 60 +6 36 108
10 140 290
Mean,
Standard deviation,
Assumed mean method:

Marks No. of d = (X – 10) d2 fd fd2
(X) students (f)
5 2 –5 25 –10 50
10 1 0 0 0 0
15 4 +5 25 20 100
20 3 +10 100 30 300
10 40 450
=
Direct method:
Marks (X) No. of fX X2 fX2
students (f)
5 2 10 25 50
10 1 10 100 100
15 4 60 225 900
20 3 60 400 1,200
10 140 2,250

Marks No. of d = X – 10 d′ = d/5 d′2 fd′ fd′2
(X) students
(f)
5 2 10 25 50
10 1 10 100 100
15 4 60 225 900
20 3 60 400 1,200
10 140 2,250
Mean,
Standard deviation,

Do it yourself 15
Find out standard deviation of the following

data: (3 marks)
[Ans. Standard Deviation = 4.94 and its coefficient
= 0.45]
Size 1 2 3 4 5 6 7 8
Frequency 5 10 15 20 25 30 35 40
(x) (f) (d=X-A) D2 fd fd2

1 5 -4=1-5 -4x-4=16 5x-4=-20 5x16=80
2 10 -3=2-5 -3x-3=9 10x-3=-30 10x9=90
3 15 -2=3-5 -2x-2x4 15x-2=-30 15x4=60
4 20 -1=4-5 -1x-1=1 20x-1=-20 20x1=20
5 15 0=5-5 0=0 =0 =0
6 10 1=6-5 1x1=1 10x=10 10x1=10
7 10 2=7-5 2x2=4 10x2=20 10x4=40
8 15 3=8-5 3x3=9 15x3=45 15x9=135
N = 100 Σfd = -25 Σfd2 = 435
σ=
Continuous Series (Grouped Data)
Actual Mean Method
Step 1: Calculate the mean of the distribution
Step 2: Calculate deviations of mid values from the

mean
Step3: Multiply the deviations with their
corresponding frequencies to get fd values.
Step 4: Calculate fd2 values by multiplying fd values
with d values. Sum up these to get ∑fd2.
Step5: Calculate standard deviation using the
following formula:
Assumed Mean Method
Step 1: Calculate mid-points of classes.
Step 2: Calculate deviations of mid-points from an
assumed mean such that d = m – A.
Step 3: Multiply values of ‘d’ with corresponding
frequencies to get ‘fd’ values.
(Note that the total of this column is not zero since
deviations have been taken from assumed mean).
Step 4: Multiply ‘fd’ values with ‘d’ values to get fd2
values. Find ∑fd2.
Step 5: Standard Deviation can be calculated by
the following formula:
Step-deviation Method
In case the values of deviations are divisible by a
common factor, the calculations can be simplified by
the step-deviation method.
Step 1: Calculate class mid-points and deviations
from an arbitrarily chosen value, just like in the
assumed mean method (i.e., d = m –A).
Step 2: Divide the deviations by a common factor
denoted as ‘c’
Step 3: Multiply d′ values with corresponding f values
to obtain fd′ values.
Step 4: Multiply fd′ values with d′ values to get fd′2
values.
Step 5: Calculate ∑fd′ and ∑fd′2 values.
Step 6: Apply the following formula to calculate
standard deviation:
Example 16
Calculate the mean, standard deviation and

coefficient of variation from the folloowing data:
(6 marks)
Profits of companies (` in lakh) Number of companies
10–20 5
20–30 8
30–50 16
50–70 8
70–80 3
Solution: Actual Mean Method:
CI f m fm d = m – 40.5 fd fd2
10–20 5 15 75 –25.5 –127.5 3,251.25
20–30 8 25 200 –15.5 –124.0 1,922
30–50 16 40 640 –0.5 –8.0 4.00
50–70 8 60 480 +19.5 +156.0 3,042
70–80 3 75 225 +34.5 +103.5 3,570.75
40 1,620 0 11,7900
Mean,
Standard Deviation,

Assumed Mean Method:
CI f m d = m – 40 fd fd2
10–20 5 15 –25 –125 3,125
20–30 8 25 –15 –120 1,800
30–50 16 40 0 0 0
50–70 8 60 +20 160 3,200
70–80 3 75 +35 105 3,675
40 +20 11,800
Mean,
Standard deviation,

CI f m d = m – 40 d′ = d/5 fd′ fd′2
10–20 5 15 –25 –5 –25 125
20–30 8 25 –15 –3 –24 72
30–50 16 40 0 0 0 0
50–70 8 60 +20 +4 +32 128
70–80 3 75 +35 +7 +21 147
40 +4 472
Mean,
Standard deviation,
Do it yourself 16
Find out standard deviation of the following data

using step deviation method: (4 marks)
Size 0-2 2-4 4-6 6-8 8-10 10-12
Frequency 5 10 15 20 25 30
[Ans. 3.28]
(X) (m) (f) dx=(m- dx2 fdx’ dx’2

A)(A=5)
0-2 1 2 –4=1-5 –4/2 = –2 4 4 8
2-4 3 4 –2=3-5 –2/2 = –1 1 -8 4
4-6 5 6 0=5-5 0/2=0 0 0 0
6-8 7 4 2=7-5 2/2=1 1 8 4
8-10 9 2 4=9-5 4/2=2 4 8 8
10-12 11 6 6=11-5 6/2=3 9 36 54
18 78
= 3. 28
1. Standard Deviation is based on all values. Therefore, a change in even one
value affects the value of standard deviation.
2. It is independent of origin but not of scale.
• Standard deviation is not affected by the value of the constant from
which deviations are calculated. The value of the constant does not
figure in the standard deviation formula. Thus, Standard deviation is
independent of origin.
• Standard deviation is not independent of scale. Thus, if the values or
deviations are divided by a common factor, the value of the common
factor is used in the formula to get the value of standard deviation.
3. Standard Deviation is the most widely used measure of dispersion. It is
also useful in more advanced statistical problems.
Coefficient of Variation (C.V.) can be used to compare different variables. For
example, if there are two firms A and B to determine the firm in which there is
greater variability in individual wages, we compare the coefficient of variation.
The firm with higher coefficient of variation will have greater variation in the
distribution of wages. Similarly, to determine whether wages have become more
or less uniform/consistent, we calculate the coefficient of variation. If the
coefficient of variation decreases, it means the wages have become more
uniform/consistent.
Example 17
An analysis of the monthly wages paid to

workers in two firms A and B, belonging to
the same industry gives the following result:
(6 marks)
Firm A Firm B
Number of wage earners 550 650
Average monthly wages `1,450 `1,400
Standard deviation of the distribution of `100 `140
wages
(a) Which firm, A or B, pays out larger amount as
weekly wages?
(b) In which firm, A or B, is there greater
variability in individual wages?
Solution: (a) Since
Firm A: Total wage bill = 550 × 1,450 = `7,97,500

Firm B: Total wage bill = 650 × 1,400 = ` 9,10,000
Thus, firm B pays larger amount as weekly wages.
(b) Coefficient of variation,
Firm A:
Firm B:
Since coefficient of variation is higher in case of

firm B, hence there is greater variation in the
distribution of wages in firm B.
Do it yourself 17
Given the following data, compare the

variability in income of teachers in two
schools. (3 marks)
School Mean income (`) Standard Deviation (`)
A 800 120
B 900 135
[Ans. C.V.A = 15% and C.V.B = 15%. Thus, there is

uniformity in the income of teachers in two
schools.]
C.V. of school A.|
C.V. of school B.| = We mpt
We not that C.V. of school A and B are the same, therefore, there
is uniformity in wages of twc schools.
Example 18
A batsman is to be selected for a cricket team.

The choice is between X and Y on the basis of
their scores in five previous tests which are:
(NCERT) (6 marks)
X 25 85 40 80 120
Y 50 70 65 45 80
Which batsman should be selected if we want:

(i) a higher run getter, or
(ii) a more reliable batsman in the team?
Solution: In order to select the batsman with a
higher run getter, we have to compare their
arithmetic mean scores. Also, to judge which
batsman is a more reliable batsman in the team,
we have to compare their coefficient of variations.
X dx = dx2 Y dy = dy2
X – 70 Y – 62
25 –45 2,025 50 –12 144
85 +15 225 70 +8 64
40 –30 900 65 3 9
80 10 100 45 –17 289
120 +50 2,500 80 +18 324
∑X = 350 ∑dx2 = 5,750 Y = 310 dy2 = 830
Solution: In order to select the batsman with a higher
run getter, we have to compare their arithmetic mean
scores. Also, to judge which batsman is a more
reliable batsman in the team, we have to compare
their coefficient of variations.
Coefficient of Variation X:
Coefficient of Variation Y:

(i) Batsman X should be selected, if we want a
higher run getter since the batsman a has an
average score of 70 runs, which is greater than
the average score of batsman Y (62 runs)
(ii) Batsman Y should be selected if we want a more
(iii) reliable or consistent batsman in the team since
the coefficient of variation of score of batsman
Y (20.77%) is much less than that of batsman X
(48.44%).
In India, the 'village and small industries sector'
consists of both 'traditional' and 'modern' small
industries. This sector has eight subgroups. They are
handlooms, handicrafts, coir, sericulture, khadi and
village industries, small scale industries and power
looms.
Do it yourself 18
The scores of two batsman A and B in five innings

during a certain match are as follows:
(4 marks)
A 32 28 47 63 7
B 19 31 48 53 67
Find out who is a better scorer and who is more

consistent batsman?
[Ans. Batsman A is a better scorer since his average score is
48.2, which is greater than the average score of the Batsman
B, i.e. 43.6. Batsman A is more consistent than Batsman B
since C.V.A = 34.83% which is less than C.V.B = 38.62%
Batsman A Batsman B
X d d2 Y d d2
32 -15 225 19 -29 841
28 -19 361 31 -17 289
47 A 0 0 48 A 0 0
63 +16 256 53 +5 25
71 +24 576 67 +19 361
ΣX=241 Σd=6 Σd2=1 ΣY=218 Σd=-22 Σd2=15
N=5 418 N=5 16
Case-based Integrated Question
To check the quality of two brands of lightbulbs, their life in
burning hours was estimated as under for 100 bulbs of each
brand.
No. of bulbs
Life (in hrs) Brand A Brand B
0–50 15 2
50–100 20 8
100–150 18 60
150–200 52 25
200–250 22 5
100 100
(i) Which brand gives higher life?
(ii) Which brand is more dependable? (8 marks)
Answer: To judge the higher life of the bulb, we have to compare
the arithmetic mean and to determine which brand is more
dependable, we have to compare their coefficient of variation.
Life Mid No. of (𝐦 − 𝟏𝟐𝟓) fd′ fd′2

𝐝′
(in hrs) values bulbs (f) 𝟓𝟎
(m)
0–50 25 15 –2 –30 60
50–100 75 20 –1 –20 20
100–150 125 18 0 0 0
150–200 175 25 +1 +25 25
200–250 225 22 +2 +44 88
100 19 193
Arithmetic mean,
Standard Deviation,
Coefficient of variation, C.V. A

Brand B
Life Mid No. of (𝒎 − 𝟏𝟐𝟓) fd′ fd′2
𝒅′
(in hrs) values (m) bulbs (f) 𝟓𝟎
0–50 25 2 –2 –4 8
50–100 75 8 –1 –8 8
100–150 125 60 0 0 0
150–200 175 25 +1 +25 25
200–250 225 5 +2 +10 20
100 +23 61
Arithmetic mean,
Standard Deviation,
Coefficient of variation,
Conclusion:
(a) Since average life of a brand A bulb is 134.5 hours and that of a
brand B bulb is 136.5 hours, therefore, brand B gives a higher
life.
(b) Since coefficient of variation for brand B of bulbs is 37.34%,
which is less than the coefficient of variation for brand A of
bulbs (51.15%), therefore, brand B bulbs are more consistent
and hence more dependable.
Example 19
The mean and standard deviation of a set of

100 observations were worked out as 40 and 5
respectively by a computer which by mistake
took the value 50 in place of 40 for one
observation. Find the correct mean, variance
and standard deviation. (6 marks)
Solution: Since
Given that N = 100 and

Therefore, ΣX = 100 × 40 = 4,000
But this is not the correct ΣX because one item
had been taken as 50 instead of 40.
Correct ΣX = 4,000 – 50 + 40 = 3,990 and Correct
Mean =
Now, Standard Deviation =
2,500 = Σ X2 – 1,60,000 ⇒ Σ X2 = 1,62,500. But this is not the

correct SX2.
Correct Σ X2 = 1,60,000 – (50)2 + (40)2 = 1,62,500 –2,500 +
1,600 = 1,61,600
Correct variance =
Answer: Correct mean = 39.9, Correct variance = 23.99 and

Correct standard deviation = 4.89
Do it yourself 19
For a group of 200 candidates, the mean and

standard deviation were found to be 40 and 15.
Later on it was discovered that the score 43 was
misread as 53. Find the correct mean and standard
deviation corresponding to the corrected figure. (6
marks)
[Ans. Correct Mean = 39.95 and Correct standard
deviation = 14.97]
Calculation of correct mean
=40; N = 200
ΣX = 40 × 200 = 8000
But 8,000 is a wrong value as one score was misread as 53
instead of 43
correct ΣX= 8,000 – incorrect item+ correct item = 8,000 - 53 +
43=7,990
Combined Standard Deviation
To calculate combined standard deviation, we have to
first calculate combined mean.
Step 1:Given To calculate combined standard deviation,
we have to first calculate combined mean.
Step 2: Find the deviation of actual mean of each

series from the combined mean.
Step 3: Given N1 , N2, σ1, σ2, d1 and d2, calculate the

combined standard deviation using the
following formula:
Example 20
Find the combined standard deviation from

the following data: (4 marks)
Boys Girls
Number 30 20
Mean 20 30
Standard Deviation 4 5
Solution:
N1 = 30, N2 = 20, s1 = 4, s2 = 5, d1 = –4 and d2 = 6,
the combined standard deviation using the following
formula:
Do it yourself 20
Mean and standard deviation of two distributions of

100 and 150 items are 50, 5 and 40, 6 respectively. find
the standard deviation of all the 250 items taken
together. (4 marks)
[Ans. 7.456]
Illustrations
Illustration 1: The sum of 10 values is 100 and

the sum of their squares is 1,090. Find out the
coefficient of variation. (3)
Solution: N = 10, ΣX = 100, ΣX2 = 1,090
Mean ,
Therefore, Coefficient of variation, C.V.

Illustration 2: Calculate Standard Deviation for
the following distribution. (6)
Classes Frequencies
20–40 3
40-80 6
80-100 20
100-120 12
120-140 9
Total 50
Solution:
Calculation of standard deviation
Class f m d = m – 90 d′= d/10 fd′ fd′2
20–40 3 30 – 60 –6 –18 108
40-80 6 60 – 30 –3 –18 54
80-100 20 90 0 0 0 0
100-120 12 110 + 20 +2 +24 48
120-140 9 130 + 40 +4 +36 144
50 24 354
Standard Deviation,
Illustration 3: The arithmetic mean and standard
deviation of a series of 20 items were calculated
by a student as 20 cm. and 5 cm. respectively. But
while calculating an item 13 was misread as 30.
Find the correct arithmetic mean and standard
deviation. (4)
Solution: Since
Given that N = 20 and = 20.

Therefore, ΣX = 20 × 20 = 400.
Correct ΣX = 400 – 30 + 13 = 383.
Therefore, Correct Mean =
Now,
ΣX2 = 8500.
Correct ΣX2 = 8,500 – (30)2 +(13)2
= 8,500 – 900 + 169 = 7,769
Therefore,
Answer: Correct mean is 19.15 and correct standard

deviation 4.66.
Illustration 4: The number of employees, wages
per employee and the variance of the wages per
employee for two factories is given below:
Factory A Factory B
Number of employees 100 150
Average wages per employee 3200 2800
per month (`)
Variance of the wages per 625 729
employee per month (`)
In which factory is there greater variation in the

distribution of wages per employee? (4)
Solution: To find in which factory there is greater
variation, we compare the coefficient of variation (C.V.)
Factory A:
Therefore,
Factory B:
Therefore,
Since coefficient of variation is higher in factory B,

there is greater variation in the distribution of wages
per employee.
Illustration 5: From the prices of shares of X and
Y below, find out which is more stable in value:
(6)
X 35 54 52 53 56 58 52 50 51 49
Y 108 107 105 105 106 107 104 103 104 101
Solution: In order to find out which shares are more

stable, we have to compare their coefficient of variations.
Calculation of Coefficient of variation
X dx = X– 51 dx2 Y dy = Y – 105 dy2
35 –16 256 108 +3 9
54 +3 9 107 +2 4
52 +1 1 105 0 0
53 +2 4 105 0 0
56 +5 25 106 +1 1
58 +7 49 107 +2 4
52 +1 1 104 –1 1
50 –1 1 103 –2 4
51 0 0 104 –1 1
49 –2 4 101 –4 16
510 0 350 1050 0 40
Arithmetic Mean:
Standard Deviation:
Coefficient of Variation:
and,
Since coefficient of variation is much less in case of

shares Y, hence they are more stable in value.
Illustration 6: Two brands of tyres are tested
with the following results:
Life No. of tyres

(in ’000 kms) Brand X Brand Y
20-25 1 0
25-30 22 24
30-35 64 76
35-40 10 0
40-45 3 0
(a) Which brand of tyres have greater average

life?
(b) Which brand is more dependable?
(8)
Solution: To judge the greater average life, we have to
compare the arithmetic mean of the tyres brand and to
determine which brand is more dependable, we have to
compare their coefficient of variation.
Brand X
Life (in
’000 kms) m f fd′ fd′2
20–25 22.5 1 –2 –2 4
25–30 27.5 22 –1 –22 22
30–35 32.5 64 0 0 0
35–40 37.5 10 +1 +10 10
40–45 42.5 3 +2 +6 12
100 –8 48
Arithmetic Mean:
Standard Deviation:
Brand Y
Life (in
’000 kms) m f fd′ fd′2
20–25 22.5 0 –2 0 0
25–30 27.5 24 –1 –24 24
30–35 32.5 76 0 0 0
35–40 37.5 0 +1 0 0
40–45 42.5 0 +2 0 0
100 –24 24
Arithmetic Mean:
Standard Deviation:
(a) Since arithmetic mean is more for brand X of tyres,

they have greater average life.
(b) Since coefficient of variation is less for brand Y of
tyres, they are more consistent and hence dependable.
Illustration 7: The number of employees, wages
per employee and the variance of wages per employee
for two factories are given below:
Factory
A B
Number of employees 50 100
Average wages per employee per day (`) 120 85
Variance of the wages per employee per day (`) 9 16
(a) In which factory is there greater variation in
the distribution of wage per employee?
(b) Suppose in factory B, the wage of an employee
are wrongly noted as `120 instead of `100.
What would be the correct mean and variance
for factory B? (6)
Solution:
(a) Coefficient of variation:
Factory A:
Therefore,
Factory B:
Therefore,
Since coefficient of variation is higher in factory B,

there is greater variation in the distribution of wages.
(b) Since
For factory B, N = 100 and = 85.

Therefore, ΣX = 100 × 85 = 8500. But this is not correct
ΣX. Correct ΣX = 8500 – 120 + 100 = 8480.
Therefore, Correct Mean =
Now,
But this is not correct ΣX2.

Correct ΣX2 = 724100 – (120)2 + (100)2
= 724100 – 14400 + 10000 = 719700
Therefore, Correct variance

Question 1
The most commonly used measure of dispersion is:
(a) Range
(b) Standard deviation
(c) Coefficient of variation
(d) Quartile deviation

Answer 1
(b) Standard deviation

Question 2
The standard deviation of 10, 16, 10, 16, 10, 10, 16, 16 is:
(a) 4
(b) 6
(c) 3
(d) 0

Answer 2
(c) 3

Question 3
Standard Deviation is _____. (absolute measure/relative
measure)

Answer 3
absolute measure

Question 4
Coefficient of variation is _______________. (absolute
measure/relative measure)

Answer 4
relative measure

Question 5
Coefficient of standard deviation = (Standard Deviation
× 100)/Mean.
(True/False)

Answer 5
False

Question 6
If Mean = 5, s = 2.6 then the coefficient of variation is:
(a) 49
(b) 51
(c) 50
(d) 52

Answer 6
(d) 52

Question 7
Standard deviation is denoted by:
(a) s2
(b) s
(c)
(d) None of these

Answer 7
(b) s

Question 8
The square of standard deviation is known as _______.
Fill in the blank.

Answer 8
variance

Question 9
The value of the standard deviation does not depend
upon the choice of the origin.
(True/False)

Answer 9
True

Question 10
Coefficient of standard deviation is:
(a) S.D/Median
(b) S.D/Mean
(c) S.D/Mode
(d) None of these

Answer 10
(b) S.D/Mean

Question 11
The value of the standard deviation will change if any
one of the observations is changed.
(True/False)

Answer 11
True

Question 12
Mean is an absolute measure & standard deviation is
based upon it. Therefore standard deviation is a relative
measure.
(True/False)

Answer 12
False

Question 13
Coefficient of variation is independent of the unit of
measurement.
(True/False)

Answer 13
True

Question 14
Coefficient of variation is a relative measure of ______.
(a) mean
(b) deviation
(c) range
(d) dispersion

Answer 14
(d) dispersion

Question 15
Coefficient of variation is equal to:
(a) Standard deviation × 100 / median
(b) Standard deviation × 100 / mode
(c) Standard deviation × 100 / mean
(d) None of these

Answer 15
(c) Standard deviation × 100 / mean

Question 16
The S.D is always taken from _______.
(a) median
(b) mode
(c) mean
(d) quartiles

Answer 16
(c) mean

Question 17
Coefficient of Standard deviation is equal to:
(a) S.D/A.M
(b) A.M/S.D
(c) S.D/G.M
(d) None of these

Answer 17
(a) S.D/A.M

Question 18
The distribution, for which the coefficient of variation is
less, is _______ (less/more) consistent.
Fill in the blank with correct word.

Answer 18
more

Correlation
 meaning and properties, scatter diagram; Measures of

correlation – Karl Pearson's method (two variables
ungrouped data)
7.1
Correlation – Meaning,
Types and Techniques
What Does Correlation Measure?
Correlation studies and measures the direction
and intensity of relationship among variables.
Correlation measures covariation, not causation.
Correlation should never be interpreted as implying
cause and effect relation. It only means covariation.
The knowledge of correlation gives us an idea of the
direction and intensity of change in a variable when
the correlated variable changes. The presence of corr-
elation between two variables X and Y simply means
that when the value of one variable is found to change
in one direction, the value of the other variable is fou-
nd to change either in the same direction (i.e. positive
change) or in the opposite direction (i.e. negative ch-
ange), but in a definite way.
 Note
For simplicity we assume here that the correlation, if it exists,
is linear, i.e. the relative movement of the two variables can
be represented by drawing a straight line on graph paper.
Types of correlation
Correlation is commonly classified into negative and
positive correlation.
1. Positive Correlation
The correlation is said to be positive when the variabl-
es move together in the same direction.
Examples:
 When the income rises, consumption also rises.
When income falls, consumption also falls.
 Sale of ice-cream and temperature move in the sa-
me direction.
1. Negative Correlation
The correlation is negative when the variables move in
opposite directions.
Examples:
 When the price of apples falls, its demand incre-
ases. When the prices rise, its demand decreases.
 When you spend more time in studying, chances of
your failing decline. When you spend less hours in
your studies, chances of scoring low marks/grades
increase. These are instances of negative correlate-
ion.
Techniques/Tools for measuring
correlation
Three important techniques/tools used to study corre-
lation are:
(i) Scatter Diagram,
(ii) Karl Pearson’s coefficient of correlation, and
(iii) Spearman’s rank correlation.
1. Scatter Diagram
A scatter diagram is a technique for measuring corre-
lation which gives a visual presentation of the nature
of relationship between the two variables on the X-axis
and Y-axis, without giving any specific numerical value.
The scatter diagram gives a visual presentation of the
relationship and is not confined to linear relations.
2. Karl Pearson’s coefficient of correlation
A numerical measure of linear relationship between
two variables is given by Karl Pearson’s coefficient of
correlation.
Key Term
Linear relationship: A relationship is said to be linear if it can be
represented by a straight line.
Karl Pearson’s coefficient of correlation measures

only linear relationship between the two variables.
3. Spearman’s rank correlation
Spearman’s rank correlation coefficient measures the
linear association between ranks assigned to individu-
al items according to their attributes.
Attributes are those variables which cannot be numerically measured

such as intelligence of people, physical appearance, honesty, etc.
When the variables cannot be measured precisely,

rank correlation can be used.
7.2
Scatter Diagram
Meaning and Definition of Scatter
Diagram
In this technique, the values of the two variables are
plotted as points on a graph paper. In a scatter diag-
ram, the degree of closeness of the scatter points and
their overall direction enable us to examine the relatio-
nship between the two variables.
Definition of Scatter Diagram

 A scatter diagram is a technique for measuring correlation
which gives a visual presentation of the nature of relationship
between the two variables on the X-axis and Y-axis, without
giving any specific numerical value.
A careful observation of the scatter diagram gives an idea of the
nature and intensity of the relationship between the two variables.
• If the scatter points are widely dispersed around the line, the
correlation is low.
• The correlation is said to be linear if the scatter points lie near a
line or on a line.
Types of Correlation using Scatter
Diagram
1. Positive Correlation
Fig. 7.1 shows a scatter around an upward rising line
indicating the movement of the variables in the same
direction. When X rises Y will also rise and vice-versa.
This is positive correlation.
2. Negative Correlation
In Fig. 7.2 the points are found to be scattered around
a downward sloping line. This time the variables move
in opposite directions. When X rises Y falls and vice
versa. This is negative correlation.
3. No Correlation
In Fig. 7.3 there is no upward rising or downward sl-
ping line around which the points are scattered. This is
an example of no correlation.
4. Perfect Correlation
If all the points lie on a line, the correlation is pe-
rfect and is said to be in unity.
In Fig. 7.4 and Fig. 7.5, the points are no longer sca-
ttered around an upward rising or downward falling
line. The points themselves are on the lines.
This is referred to as perfect positive correlation and
perfect negative correlation respectively.
5. Non-linear relation
If the true relation between the two variables X and Y
is of the type shown in the scatter diagrams in Figures
7.6 or 7.7, then it means there is a non-linear relation
between X and Y.
3.3
Karl Pearson’s
Coefficient of
Correlation
This is also known as product moment correlate-
ion coefficient or simple correlation coefficient.
It gives a precise numerical value of the degree
of linear relationship between two variables X
and Y.
 Top Tip
Karl Pearson’s coefficient of correlation should be used only
when there is a linear relation between the variables.
When there is a non-linear relation between X and Y, then c-
alculating the Karl Pearson’s coefficient of correlation can be
misleading.
• If the true relation is of the linear type as shown by the scatter
diagrams in figures 7.1, 7.2, 7.4 and 7.5, then the Karl Pearson’s
coefficient of correlation should be calculated and it will tell us
the direction and intensity of the relation between the variables.
• But if the true relation is of the type shown in the scatter
diagrams in Figures 7.6 or 7.7, then it means there is a non-
linear relation between X and Y and we should not try to use
the Karl Pearson’s coefficient of correlation.
It is, therefore, advisable to first examine the scatter diagram of the
relation between the variables before calculating the Karl Pearson’s
correlation coefficient.
Karl Pearson’s measure of correlation (denoted as
r or rxy) is given by:
Key Terms
Covariance: Covariance of X and Y measures the joint variations of
the two variables X and Y. It can be positive or negative or zero.
Variance: Variance is the square of standard deviation (Variance =
σ2 ⇒ Variance = σ).
 Top Tip
The sign of covariance between X and Y determines the sign of
the correlation coefficient. The standard deviations are always
positive. If the covariance is zero, the correlation coefficient is
always zero.
Example 1
If the covariance between X and Y variables is 12.3 and

variances of X and Y are respectively 13.8 and 16.4.
Find the Karl Pearson’s coefficient of correlation
between them. (1 mark)
Solution: Karl Pearson’s coefficient of correlation,
r=
Thus, Karl Pearson’s Correlation Coefficient = 0.81

Example 2
Find standard deviation of Y, if Karl Pearson’s

coefficient of correlation = 0.25, covariance between
X and Y = 10 and variance of X = 64. (1 mark)
Thus, standard deviation of Y = 5

Example 3
Calculate the Karl Pearson’s coefficient of correlation

from the following data:
Cov. (X,Y) = 488, σx = 28.7, σy = 18.02, N = 10
(1 mark)
Actual Mean Method – Using Arithmetic
Means of X and Y
Let X1, X2, X3, ..., XN be N values of X and Y1, Y2, Y3,
..., YN be the corresponding values of Y.
Arithmetic Means of X and Y:
Covariance of X and Y:
Cov. (X, Y) = , where
and are the deviations of the values of X and

Y from their actual mean values respectively.
Karl Pearson’s measure of correlation will be ca-
lculated as follows:
We know that
Thus,
Example 4
Find the coefficient of correlation between x and y:

(3 marks)
Summation of product of deviations of X and Y series

from their respectively means = 150
Solution: Given N = 30, σx = 3, σy = 2 and Σxy = 150,
where and
Therefore, Karl Pearson’s coefficient of correlation,
Alternate Method for Calculating Coefficient
of Correlation by Actual Mean Method
Let X1, X2, X3, ..., XN be N values of X and Y1, Y2, Y3, ...,
YN be the corresponding values of Y.
Arithmetic Means of X and Y:
Covariance of X and Y: Cov (X, Y) =
Standard Deviations of X and Y:

Also,
Karl Pearson’s measure of correlation will be ca-

lculated as follows:
Thus,
Direct Method – Using Actual Values
of X and Y
Assumed Mean Method/Short-Cut
Method
Coefficient of correlation can be calculated by taking
the deviations from assumed means, such that
dx = X – A and dy = Y – B, where A and B are assumed
means of X and Y.
The formula for calculating the coefficient of
correlation will be:
All the methods of calculating coefficient of correlation gives the
same value. You can apply any of these methods for calculating
the value of r. However, to calculate correlation coefficient in a
simplified manner, assumed mean method may be applied.
Properties of Correlation Coefficient
1. Coefficient of correlation (r) has no unit.
It is a pure number.
It means units of measurement are not part of r. For
example, coefficient of correlation (r) between height
in feet and weight in kilograms could be say 0.7.
2. If coefficient of correlation (r) is
positive, the two variables move in the
same direction.
For example:
(i) When the price of coffee, a substitute of tea, rises
the demand for tea also rises.
(ii) Improvement in irrigation facilities is associated
with higher yield.
(iii) When temperature rises the sale of ice-creams
becomes brisk.
3. A negative value of coefficient of
correlation (r) indicates an inverse
relation.
A change in one variable is associated with change in
the other variable in the opposite direction. For exam-
ple:
(i) When the rate of interest rises, the demand for
funds also falls. It is because now funds have be-
come costlier.
(ii) When price of a commodity rises, its demand fa-
lls.
4. The value of the correlation coefficient
ranges from minus one to plus one (–1 ≤ r ≤
1).
If, in any case, the value of coefficient of correlation
(r) is outside this range, it indicates error in calcu-
lation.
 If r = 1 or r = –1, the correlation is perfect and there
is exact linear relation.
— If r = 1, it means there is perfect positive
correlation between the variables X and Y.
— If r = –1, it means there is perfect negative
correlation between the variables X and Y.
 If r = 0, the two variables are uncorrelated, i.e. there
is no linear relation between them. However, other
types of relation may be there, e.g. a non-linear rel-
ation.
 A low value of r (close to zero) indicates a weak lin-
ear relation. But there may be a non-linear relation.
 A high value of r indicates strong linear relation-
ship. Its value is said to be high when it is close to
+1 or –1.
 Top Tip
Interpretation of different values of ‘r’
The correlation coefficient between marks secured in English and Statistics
is, say, 0.1. It means that though the marks secured in the two subjects are
positively correlated, the strength of the relationship is weak. Students
with high marks in English may be getting relatively low marks in statistics.
Had the value of r been, say, 0.9, students with high marks in English will
invariably get high marks in Statistics.
An example of negative correlation is the relation between arrival of
vegetables in the local mandi and price of vegetables. If r is –0.9, vegetable
supply in the local mandi will be accompanied by lower price of veget-
ables. Had it been –0.1, large vegetable supply will be accompanied by lo-
wer price, not as low as the price, when r is –0.9. The extent of price fall
depends on the absolute value of r. Had it been zero, there would have
been no fall in price, even after large supplies in the market. This is also a
possibility if the increase in supply is taken care of by a good transport
network transferring it to other markets.
5. The magnitude of r is unaffected by the
change of origin and change of scale.
Given two variables X and Y let us define two new
variables, U and V.
where A and B are assumed means of X and Y respec-

tively. h and k are common factors and of same sign.
Then, ruv = rxy
When the values of the variables are large, the burden
of calculation can be considerably reduced by using
the property of r — "r is independent of change in
origin and scale". It is also known as step deviation
method.
The formula for calculating the coefficient of
correlation in this method will be:
where,
Illustrations
Illustration 1: In a survey of 35 families in a villa-

ge, the number of children per family was recor-
ded and the following data obtained:
Illustrations
Question 1
The unit of correlation coefficient between height in feet
and weight in kgs is _______.
(a) kg/feet
(b) percentage
(c) non-existent
(d) None of these

Answer 1
(c) non-existent

Question 2
The range of simple correlation coefficient is _______.
(a) 0 to infinity
(b) minus one to plus one
(c) minus infinity to infinity
(d) None of these

Answer 2
(b) minus one to plus one

Question 3
If rxy is positive the relation between X and Y is of the
type _____.
(a) When Y increases X increases
(b) When Y decreases X increases
(c) When Y increases X decreases
(d) When Y increases X does not change

Answer 3
(a) When Y increases X increases

Question 4
If rxy = 0, the variable X and Y are _______.
(a) linearly related
(b) not linearly related
(c) independent
(d) perfectly correlated

Answer 4
(b) not linearly related

Question 5
Of the following 3 measures which can measure any type
of relationship?
(a) Karl Pearson’s coefficient of correlation
(b) Spearman’s rank correlation
(c) Scatter diagram
(d) None of these

Answer 5
(c) Scatter diagram

Question 6
If precisely measured data are available the simple corre-
lation coefficient is ___________.
(a) more accurate than rank correlation coefficient.
(b) less accurate than rank correlation coefficient.
(c) as accurate as the rank correlation coefficient.
(d) None of these

Answer 6
(a) more accurate than rank correlation coefficient.

Question 7
If covariance between X and Y variables is 10 and the
variances of X and Y are respectively 16 and 9, find the
coefficient of correlation.

Answer 7

Question 8
Name the mathematical/statistical technique which deals
with questions such as:
• Is there any relationship between two variables?
• If the value of one variable changes, does the value of
the other also change?
• Do both the variables move in the same direction?
• How strong is the relationship?

Answer 8
Correlation analysis

Question 9
Low agricultural productivity is related to low rainfall.
This is an example of which of the following type of rel-
ationship?
(a) Cause and effect relationship
(b) Simple coincidence
(c) A third variable’s impact on two variables
(d) None of the above

Answer 9

Question 10
Temperature is behind the high correlation between th-
e sale of ice-creams and deaths due to drowning. This is
an example of which of the following type of relations-
hip?
(b) A third variable’s impact on two variables
(c) Simple coincidence
(d) None of the above

Answer 10
(b) A third variable’s impact on two variables

Question 11
Correlation measures __________, not__________.
(causation/covariation) Fill in the blanks.

Answer 11
covariation, causation

Question 12
When the price of apples falls, its demand increases.
This is an example of ___________ (positive/negative)
correlation. Fill in the blank.

Answer 12
negative

Question 13
______ gives a visual presentation of the relationship
and is not confined to linear relations.

Answer 13
Scatter diagram

Question 14
A numerical measure of _______ relationship between
two variables is given by Karl Pearson’s coefficient of c-
orrelation. Fill in the blank.

Answer 14
linear

Question 15
In a scatter diagram, the degree of closeness of the
scatter points and their overall ______ enable us to
examine the relationship between the two variables.
Fill in the blank.

Answer 15
direction

Question 16
A careful observation of the scatter diagram gives an
idea of the _______ and ______ of the relationship
between the two variables.

Answer 16
nature, intensity

Question 17
If the scatter points are widely dispersed around the line,
the correlation is ________.
(a) low
(b) high
(c) perfect
(d) None of these

Answer 17
(a) low

Question 18
The correlation is said to be _____ if the scatter points
lie near a line or on a line.
Fill in the blank.

Answer 18
linear

Question 19
Match the columns:
Column I Column II
(i) A scatter around an upward rising line (A) Perfect Correlation
(ii) A scatter around a downward sloping (B) Positive Correlation
line.
(iii) There is no upward rising or (C) Negative
downward sloping line around which Correlation
the points are scattered.
(iv) The points are no longer scattered (D) No Correlation
around an upward rising or
downward falling line. The points
themselves are on the lines.
Answer 19
(i)– (B), (ii) – (C), (iii) – (D), (iv) –(A)

Question 20
The following scatter diagram shows _______ between
the two variables X and Y:

(a) Perfect Correlation
(b) No Correlation
(c) Positive Correlation
(d) Negative Correlation
Answer 20
(b) No Correlation

Question 21
What kind of relation is shown by the following scatter
diagram?

Answer 21
Negative Non-linear Relation

Question 22
Karl Pearson’s Coefficient of Correlation is also known
as ______.
(a) product moment correlation coefficient
(b) simple correlation coefficient
(c) rank correlation coefficient

Answer 22

Question 23
When there is a non-linear relation between X and Y, th-
en calculating the _________ can be misleading.
(b) rank correlation coefficient

Answer 23

Question 24
If the true relation is of the type shown in the following
scatter diagram, then we should not try to use ______.
(b) Spearman’s rank correlation coefficient

Answer 24

Question 25
Which of the following is not a formula for calculating
the Karl Pearson’s measure of correlation?

Answer 25

Question 26
Coefficient of correlation (r) has no unit. True/False?
Give reason.

Answer 26
True: Coefficient of correlation (r) has no unit. It is a
pure number.
It means units of measurement are not part of r. For
example, coefficient of correlation (r) between height in
feet and weight in kilograms could be say 0.7.

Question 27
If coefficient of correlation (r) is positive, a change in on-
e variable is associated with change in the other variable
in the opposite direction. True/False? Give reason.

Answer 27
False: If coefficient of correlation (r) is positive, the two
variables move in the same direction.

Question 28
The value of the correlation coefficient ranges between
minus one and plus one.
True / False? Give reason.

Answer 28
False: The value of the correlation coefficient ranges
from minus one and plus one (–1 ≤ r ≤ 1).

Question 29
If r = 0, there is no relation between the two variables.

Answer 29
False: r = 0 means the two variables are uncorrelated,
i.e. there is no linear relation between them. However,
other types of relation may be there, e.g. a non-linear
relation.

Question 30
A low value of r (close to zero) indicates a weak relation
always between the two variables X and Y. True/False?
Give reason.

Answer 30
False: A low value of r (close to zero) indicates a weak
linear relation. But there may be a non-linear relation.

Question 31
A high value of r indicates strong linear relationship.
True/ False? Give reason.

Answer 31
True: A high value of r (close to +1 or –1) indicates
strong linear relationship.

Question 32
The correlation coefficient between marks secured in
English and Statistics is, say, 0.1.What does it mean?

Answer 32
It means that though the marks secured in the two sub-
jects are positively correlated, the strength of the relat-
ionship is weak. Students with high marks in English may
be getting relatively low marks in statistics.

Question 33
The correlation coefficient between marks secured in
English and Statistics is, say, 0.9.What does it mean?

Answer 33
It means that there is a strong positive relation between
marks secured in English and Statistics. Students with
high marks in English will invariably get high marks in St-
atistics.

Question 34
The magnitude of r is unaffected by the change of origin
and change of scale. True/False? Give reason.

Answer 34
True: Given two variables X and Y, if we define two new
variables, U and V such that
where A and B are assumed means of X and Y

respectively and h and k are common factors, then, ruv
= rxy.

Question 35
Correlation analysis aims at:
(a) Predicting one variable for a given value of the
other variable
(b) Establishing relation between two variables
(c) Measuring the extent of relation between two
variables

Answer 35

Question 36
Scatter diagram is considered for measuring:
(a) linear relationship between two variables
(b) non-linear relationship between two variables
(c) Neither (a) nor (b)

Answer 36

Question 37
If the plotted points in a scatter diagram lie from upper
left to lower right, then the correlation is:
(a) Positive
(b) Zero
(c) Negative
(d) None of these

Answer 37
(c) Negative

Question 38
If the plotted points in a scatter diagram are evenly dist-
ributed, then the correlation is:
(a) Zero
(b) Negative
(c) Positive

Answer 38
(a) Zero

Question 39
If all the plotted points in a scatter diagram lie on a single
line, then the correlation is:
(a) Perfect positive
(b) Perfect negative

Answer 39

Question 40
The correlation between shoe-size and intelligence is:
(a) Zero
(b) Positive
(c) Negative
(d) None of these

Answer 40
(a) Zero

Question 41
Scatter diagram helps us to:
(a) find the nature correlation between two variables
(b) compute the extent of correlation between two
variables
(c) obtain the mathematical relationship between two
variables

Answer 41
(a) find the nature correlation between two variables

Question 42
Pearson’s correlation coefficient is used for finding:
(a) Correlation for any type of relation.
(b) Correlation for non-linear relation only.
(c) Correlation for linear relation only.

Answer 42
(c) Correlation for linear relation only.

Question 43
Product moment correlation coefficient is considered for:
(a) Finding the nature of correlation
(b) Finding the amount of correlation
(d) Either (a) and (b)

Answer 43

Question 44
If the value of correlation coefficient is positive, then the
points in a scatter diagram tend to cluster:
(a) From lower left corner to upper right corner.
(b) From lower left corner to lower right corner.
(c) From lower right corner to upper left corner.
(d) From lower right corner to upper right corner.

Answer 44
(a) From lower left corner to upper right corner.

Question 45
When r = 1, all the points in a scatter diagram would lie:
(a) on a straight line directed from lower left to upper
right.
(b) on a straight line directed from upper left to lower
right.
(c) on a straight line.

Answer 45
(a) on a straight line directed from lower left to upper
right.

Question 46
Product moment correlation coefficient may be defined
as the ratio of:
(a) The product of standard deviations of the two
variables to the covariance between them.
(b) The covariance between the variables to the
product of the variances of them.
(c) The covariance between the variables to the
product of their standard deviations.
Answer 46
(c) The covariance between the variables to the
product of their standard deviations.

Question 47
The covariance between two variables is:
(a) strictly positive.
(b) strictly negative.
(c) always zero.
(d) either positive or negative or zero.

Answer 47
(d) either positive or negative or zero.

Question 48
The coefficient of correlation between two variables:
(a) can have any unit.
(b) is expressed as the product of units of the two
variables.
(c) is a unit free measure.
(d) None of these

Answer 48
(c) is a unit free measure

Question 49
What are the limits of the correlation coefficient?
(a) No limit
(b) –1 and 1
(c) 0 and 1, including the limits
(d) –1 and 1, including the limits

Answer 49
(d) –1 and 1, including the limits

Question 50
If there is a perfect disagreement between the marks in
Geography and Statistics, then what would be the value
of rank correlation coefficient?
(a) Any value
(b) Only 1
(c) Only –1

Answer 50
(c) Only –1

Question 51
____________ is concerned with the measurement of
the “strength of association” between variables. Fill up
the blank.

Answer 51
correlation

Question 52
When high values of one variable are associated with
high values of the other & low values of one variable
are associated with low values of another, then they
are said to be:
(a) positively correlated
(b) directly correlated
(d) None of these

Answer 52

Question 53
If high values of one tend to low values of the other, they
are said to be ______ correlated. (positively/negatively)
Fill up the blank with correct option.

Answer 53
negatively

Question 54
Correlation coefficient between two variables is a
measure of their linear relationship. (True/False)

Answer 54
True

Question 55
Correlation coefficient is dependent of the choice of both
origin & the scale of observations. (True/False)

Answer 55
False

Question 56
Correlation coefficient is a pure number. (True/False)

Answer 56
True

Question 57
Correlation coefficient is _____________ of the units
of measurement. (dependent/independent). Fill up the
blank with correct option.

Answer 57
independent

Question 58
The value of correlation coefficient lies between:
(a) –1 and +1 (inclusive of these two values)
(b) –1 and 0 (inclusive of these two values)
(c) 0 and 1 (inclusive of these two values)
(d) None of these

Answer 58
(a) –1 and +1 (inclusive of these two values)

Question 59
Covariance measures _____ variations of two variables.

(a) joint
(b) single
(d) None of these

Answer 59
(a) joint

Question 60
In calculating the Karl Pearson’s coefficient of correlation
it is necessary that the data should be of numerical me-
asurements. (True/False)

Answer 60
True

Question 61
Whatever may be the value of r, positive or negative, its
square will be:
(a) negative only
(b) positive only
(c) zero only
(d) None of these

Answer 61
(b) positive only

Question 62
A coefficient near +1 indicates tendency for the larger
values of one variable to be associated with the larger
values of the other. (True/False)

Answer 62
True

Question 63
Karl Pearson’s coefficient is defined from _______ data.
(grouped/ungrouped)

Answer 63
grouped

Question 64
Correlation methods are used to study the relationship
between two time series of data which are recorded
annually, monthly, weekly, daily and so on. (True/False)

Answer 64
True

Question 65
“Age of Applicants for life insurance and the premium
of insurance”. Correlation is _____. (positive/negative)

Answer 65
positive

Question 66
“Unemployment index and the purchasing power of the
common man”. Correlation is _____. (positive/negative)

Answer 66
negative

Question 67
“Demand for goods and their prices under normal
times”. Correlation is _______. (positive/negative)

Answer 67
negative

Question 68
_______ is a relative measure of association between
two or more variables. Fill up the blank.

Answer 68
Coefficient of correlation

Question 69
Simple correlation is called ________.
(a) linear correlation
(b) non-linear correlation
(d) None of these

Answer 69
(a) linear correlation

Question 70
A scatter diagram indicates the type of correlation
between two variables. (True/False)

Answer 70
True

Question 71
If the pattern of points (or dots) on the scatter diagram
shows a linear path diagonally across the graph paper fr-
om the bottom left- hand corner to the top right, cor-
relation will be ________.
(a) negative
(b) zero
(c) positive
(d) None of these

Answer 71
(c) positive

Question 72
The correlation coefficient being +1 if the slope of the
straight line in a scatter diagram is:
(a) negative
(b) zero
(c) positive
(d) None of these

Answer 72
(c) positive

Question 73
The correlation coefficient being –1 if the slope of the
straight line in a scatter diagram is:
(a) negative
(b) zero
(c) positive
(d) None of these

Answer 73
(a) negative

Question 74
The more scattered the points are around a straight line
in a scattered diagram the _________ is the correlation
coefficient.
(a) zero
(b) more
(c) less
(d) None of these

Answer 74
(c) less

Question 75
If the values of y are not affected by changes in the
values of x, the variables are said to be _________.
(correlated/uncorrelated) Fill up the blank with
correct option.

Answer 75
uncorrelated

Question 76
If the amount of change in one variable tends to bear a
constant ratio to the amount of change in the other va-
riable, then correlation is said to be ________. (linear/
non-linear) Fill up the blank with correct option.

Answer 76
linear

Question 77
Variance may be positive, negative or zero. (True/False)

Answer 77
False

Question 78
Covariance may be positive, negative or zero.
(True/False)

Answer 78
True

Question 79
Correlation coefficient between X and Y = Correlation
coefficient between U and V. (True/False)

Answer 79
True

Question 80
In case of ‘The ages of husbands and wives’ correlation is
_______.
(a) positive
(b) negative
(c) zero
(d) None of these

Answer 80
(a) positive

Question 81
In case of ‘Insurance companies profits and the number
of claims they have to pay’, there is __________.
(a) positive correlation
(b) negative correlation
(c) no correlation
(d) None of these

Answer 81

Question 82
In case of ‘Years of education and Income’, there is ____.
(c) no correlation
(d) None of these

Answer 82

Question 83
In case of ‘Amount of rainfall and yield of crop’, there is
________.
(c) no correlation
(d) None of these

Answer 83

Question 84
For calculation of correlation coefficient, a change of or-
igin is _____. (not possible/possible) Fill up the blank
with correct option.

Answer 84
possible

Question 85
rxy = cov (x,y)/ σx . σy (True/False)

Answer 85
True

Question 86
A small value of r indicates only a ______ linear type of
relationship between the variables.
(a) good
(b) poor
(c) maximum
(d) highest

Answer 86
(b) poor

Question 87
When r = 0 then cov.(X,Y) is equal to:
(a) +1
(b) –1
(c) 0
(d) None of these

Answer 87
(c) 0

Question 88
When the variables are not independent, the correlation
coefficient may be zero. (True/False)

Answer 88
True

Question 89
In case of employed persons ‘Age and income’ correlation
is:
(a) positive
(b) negative
(c) zero
(d) None of these

Answer 89
(a) positive

Question 90
In case ‘Speed of an automobile and the distance re-
quired to stop the car often applying brakes’, correlation
is:
(a) positive
(b) negative
(c) zero
(d) None of these

Answer 90
(a) positive

Question 91
In case ‘Sale of cold drinks and day temperature’
correlation is:
(a) positive
(b) negative
(c) zero
(d) None of these

Answer 91
(a) positive

Question 92
The minimum value of correlation coefficient is:
(a) 0
(b) –2
(c) 1
(d) –1

Answer 92
(d) –1

Question 1
Coefficient of correlation between two variables X and Y
is 0.3. The covariance is 9. The variance of X is 16. What is
the value of standard deviation of Y?
(a) 5
(b) 7.5
(c) 0.5625
(d) 2.7
Brain Teaser
Answer 1
(b) 7.5
Hint:
Brain Teaser
Question 2
Given r = 0.8, Σxy= 60, σy= 2.5 and number of items =
10, find σx . x and y are deviations from arithmetic mean.
Brain Teaser
Answer 2
Brain Teaser
Question 3
Why is simple correlation coefficient (r) preferred to cova-
riance as a measure of association? (1)
Brain Teaser
Answer 3
Simple correlation coefficient (r) is preferred to covarian-ce
as a measure of association because:
(i) Coefficient of correlation (r) has no unit. It is a pure
number.
(ii) The magnitude of r is unaffected by the change of origin
and change of scale.
Brain Teaser
Question 4
Does correlation imply causation? (1)
Brain Teaser
Answer 4
No, correlation should never be interpreted as implying
causation. It only means covariation. The knowledge of
correlation gives us an idea of the direction and inten-
sity of change in a variable when the correlated variable
changes.
Brain Teaser
Question 5
Does zero correlation mean independence? (1)
Brain Teaser
Answer 5
No, because if r = 0, the two variables are uncorrelated,
i.e. there is no linear relation between them. However, r
= 0 does not mean that variables are independent as
other types of relation may be there, e.g. a non-linear
relation.
Brain Teaser
Question 6
Can correlation coefficient (r) lie outside the –1 and 1
range depending on the type of data? (1)
Brain Teaser
Answer 6
No, the value of the correlation coefficient always ranges
from minus one and plus one (–1 ≤ r ≤ 1). If, in any case,
the value of coefficient of correlation (r) is outside this
range, it indicates error in calculation.
Brain Teaser
Question 7
Interpret the values of (r) as 1, –1 and 0. (1)
Brain Teaser
Answer 7
• If r = 1, it means there is perfect positive correlation
between the variables X and Y.
• If r = –1, it means there is perfect negative corr-
elation between the variables X and Y.
• If r = 0, the two variables are uncorrelated, i.e. there
is no linear relation between them. However, other
types of relation may be there, e.g. a non-linear rel-
ation.
Brain Teaser
Question 8
Can simple correlation coefficient measure any type
of relationship? (1)
Brain Teaser
Answer 8
No, Simple correlation coefficient gives a precise
numerical value of the degree of linear relationship
only between two variables X and Y.
When there is a non-linear relation between X and
Y, then calculating the Karl Pearson’s coefficient of
correlation can be misleading.
Brain Teaser
Question 9
The correlation between the speed of an automobile
and the distance travelled by it after applying the brakes
is:
(a) Negative
(b) Zero
(c) Positive
(d) None of these
Brain Teaser
Answer 9
(a) Negative
Brain Teaser
Question 10
If for two variables x and y, the covariance, variance of x
and variance of y are 40, 16 and 256 respectively, what is
the value of the correlation coefficient?
(a) 0.01
(b) 0.625
(c) 0.4
(d) 0.5
Brain Teaser
Answer 10
(b) 0.625
Brain Teaser
Question 11
If cov.(x, y) = 15, what restrictions should be put for the
standard deviations of x and y?
(a) No restriction.
(b) The product of the standard deviations should be
more than 15.
(c) The product of the standard deviations should be
less than 15.
(d) The sum of the standard deviations should be less
than 15.
Brain Teaser
Answer 11
(b) The product of the standard deviations should be
more than 15.
Brain Teaser
Question 12
If the covariance between two variables is 20 and the
variance of one of the variables is 16, what must be the
standard deviation of the other variable?
(a) More than 100
(b) More than 20
(c) More than 10
(d) More than 5
Brain Teaser
Answer 12
(d) More than 5
Brain Teaser
Question 13
Given the following data:
The coefficient of correlation was found to be 0.93.

What is the correlation between U andV as given below?
(a) – 0.93 (b) 0.57

(c) 0.93 (d) – 0.57
Brain Teaser
Answer 13
(c) 0.93
Brain Teaser
Question 14
What is the value of Karl Pearson’s correlation
coefficient on the basis of the following data?
(a) 0.75
(b) –0.75
(c) –0.85
(d) 0.85
Brain Teaser
Answer 14
(c) –0.85
Brain Teaser
Question 15
The coefficient of correlation between X and Y will be:
(a) 0.655
(b) 0.68
(c) 0.73
(d) 0.758
Brain Teaser
Answer 15
(a) 0.655
Brain Teaser
Question 16
What is the coefficient of correlation between the age (in
years) of husbands and wives from the following data?
(a) 0.58
(b) 0.98
(c) 0.89
(d) 0.92
Brain Teaser
Answer 16
(b) 0.98
Brain Teaser
Question 17
The following results relate to bivariate data on (X,Y):
Σxy = 414, Σx = 120, Σy = 90, Σx2 = 600, Σy2 = 300, N =30.
Later on, it was known that two pairs of observations (12,
11) and (6, 8) were wrongly taken, the correct pairs of
observations being (10, 9) and (8, 10). The corrected value
of the correlation coefficient is:
(a) 0.752
(b) 0.768
(c) 0.846
(d) 0.953 Brain Teaser
Answer 17
(c) 0.846
Brain Teaser
Question 18
For two variables X and Y, it is known that cov. (X,Y) =
0.4, variance of X is 16 and sum of squares of deviation
of Y from its mean is 250. The number of observations
for this bivariate data is:
(a) 7
(b) 8
(c) 9
(d) 10
Brain Teaser
Answer 18
(d) 10
Brain Teaser
Question 19
What is the value of coefficient of correlation between
cost of advertisement (in `000) and sales of a product (in
`lakhs) on the basis of the following data?
(a) 0.85
(b) 0.89
(c) 0.95
(d) 0.98
Brain Teaser
Answer 19
(c) 0.95s
Brain Teaser
Introduction to
Index Numbers
 Meaning, types - wholesale price index, consumer price index

 and index of industrial production
 Uses of index numbers
 Inflation and index numbers
8.1
Index Number – Meaning
An index number measures changes in the value of the
variables such as prices of specified list of commodities,
volume of production in different sectors of an industry,
production of various agricultural crops, cost of living etc.
Definition
An index number is a statistical device for measuring relative
change in a large number of items.
 Price index numbers measure and permit

comparison of the prices of certain goods.
 Quantity index numbers measure the changes in the
physical volume of production, construction or
employment.
Though price index numbers are more widely used, a
quantity index number is also an important indicator of the
level of the output in the economy.
 Note
Conventionally, index numbers are expressed in terms of percentage.
Of the two periods, the period with which the comparison

is to be made, is known as the base period. The value in the
base period is given the index number 100.
For example, if you want to know how much the price has
changed in 2020 from the level in 2015, then 2015 becomes
the base year. The index number of any period is in
proportion with it. Thus, an index number of 150 indicates
that the value is 1.5 times that of the base period.
As you observe in this example, the percentage changes
are different for every commodity.
If the percentage changes were the same for all four
items, a single measure would have been sufficient to
describe the change.
However, the percentage changes differ and reporting
the percentage change for every item will be confusing.
It happens when the number of commodities is large,
which is common in any real market situation.
Estimating index number enables you to calculate
a single numerical measure of change of a large
number of items.
8.2
Construction of Index
Numbers
The Aggregative Method
An index number can be computed by the aggregative
method and by the method of averaging relatives.
1. Simple Aggregative Method
The formula for a simple aggregative price index is:
where,
P1 = Price of the commodity in the current period and
P0 = Price of the commodity in the base period
Limitations of simple aggregative method
The price index calculated in example 1 is of limited use. The

reason is that the units of measurement of prices of various
commodities are not the same. It is unweighted, because the
relative importance of the items has not been properly reflected.
The items are treated as having equal importance or weight. But
what happens in reality? In reality the items purchased differ in
order of importance. Food items occupy a large proportion of our
expenditure. In that case an equal rise in the price of an item with
large weight and that of an item with low weight will have different
implications for the overall change in the price index.
2. Weighted Aggregative Method
Laspeyre’s Price Index: The formula for a weighted
aggregative price index under Laspeyre’s method is:
This method uses the base period quantities as weights.

A weighted aggregative price index using base period
quantities as weights, is also known as Laspeyre’s price
index. It provides an explanation to the question that if
the expenditure on base period basket of commodities
was `100, how much should be the expenditure in the
current period on the same basket of commodities?
 Note
An index number becomes a weighted index when the relative
importance of items is taken care of. Here, weights are quantity
weights. To construct a weighted aggregative index, a well-
specified basket of commodities is taken and its worth each year
is calculated. It, thus, measures the changing value of a fixed
aggregate of goods. Since the total value changes with a fixed
basket, the change is due to price change.
Paasche’s Price Index: The formula for a weighted
aggregative price index under Paasche’s method is:
It uses the current period quantities as weights. A

weighted aggregative price index using current period
quantities as weights is known as Paasche’s price index.
It helps in answering the question that, if the current
period basket of commodities was consumed in the
base period and if we were spending `100 on it, how
much should be the expenditure in current period on
the same basket of commodities.
Method of Averaging relatives
1. Simple price relative index
When there is only one commodity, the price index is
the ratio of the price of the commodity in the current
period to that in the base period, usually expressed in
percentage terms.
The method of averaging relatives takes the average of
these relatives when there are many commodities. The
price index number using price relatives is defined as:
Where
p1 = price of the ith commodity in the current period
p0 = price of the commodity in the base period
is also referred to as price relative of the
commodity ‘n’ stands for the number of
commodities.
2. Weighted price relative index
The weighted index of price relatives is the weighted
arithmetic mean of price relatives defined as follows:
where,
W = Weight and R = Price Relative p1/p0 × 100
In a weighted price relative index, weights may be
determined by the proportion or percentage of
expenditure on them in total expenditure during the
base period. It can also refer to current period
depending on the formula used.
These are, essentially, the value shares of different
commodities in the total expenditure. In general, the
base period weight is preferred to the current period
weight. It is because calculating the weight every year is
inconvenient. It also refers to the changing values of
different baskets. They are strictly not comparable.
8.3
Index Numbers – Types
1. Consumer Price Index (CPI)
Consumer price index (CPI), also known as the cost of
living index, measures the average change in retail
prices.
Consider the following statement: CPI for industrial
workers (2001 = 100) is 278 in May 2020.
What does this statement mean? It means that if the
industrial worker was spending `100 in 2001 for a
typical basket of commodities, he needs `278 in May
2020 to be able to buy an identical basket of
commodities. It is not necessary that he/she buys the
basket. What is important is whether he has the
capability (purchasing power) to buy it.
CPI can be measured by the following two methods.
They may give different answers.
1. Family Budget Method: Consumer price index
(CPI) or the cost of living index is calculated as follows:
 Notes
1. If W is not given then, W = p0q0
2. Normally, family budget method is used for calculating CPI.
2. Aggregate Expenditure Method: CPI or the cost of
living index is calculated as follows:
 Notes
1. CPI by Aggregate Expenditure Method is same as Laspeyre's
Price Index.
2. In Aggregate Expenditure Method, weights are taken as q0 (if
not given)
What does an index larger than 100 indicate?
It means a higher cost of living necessitating an upward adjustment in wages and
salaries. The rise is equal to the amount, it exceeds 100. If the CPI is 150, it
means 50 per cent upward adjustment is required. The salaries of the
employees have to be raised by 50 per cent.
2. Wholesale Price Index (WPI)
The Wholesale price index number indicates the
change in the general price level. Unlike the CPI, it
does not have any reference consumer category. It does
not include items pertaining to services like barber
charges, repairing, etc.
What does the statement “WPI with 2011–12 as base is
112.8 in May, 2017” mean? The Wholesale Price Index is
now being prepared with base 2011–12 = 100. The value
of the index for May 2017 was 112.8. It means that the
general price level has risen by 12.8 per cent during this
period.
WPI uses the prices that are prevailing at the wholesale
level. Only the prices of goods are included. The main types
of goods and their weights are as follows:
Source: Ministry of Statistics and Programme

Implementation, 2016–17
Usually the data on Wholesale Prices is available quickly.
The ‘All Commodities Inflation Rate’ is often referred to as
‘Headline Inflation’. Sometimes, the focus is on food
items which comprise 24.23% of the total weight.
This Food Index is made up of Food Articles from the
Primary Articles group and Food Products from the
Manufactured Products group.
Other economists like to focus on the wholesale prices in
manufactured goods (other than food articles and also
excluding fuel) and for this they study ‘Core Inflation’
which make up around 55% of the total weight of the
wholesale price index.
8.4
Inflation and Index
Numbers
The WPI is widely used to measure the rate of inflation.
Key Terms
Inflation: Inflation is a general and continuing increase in prices.
If inflation becomes sufficiently large, its primary impact

lies in lowering the value of money.
where, Xt and Xt–1 refer to the WPI for the tth and (t – 1)th
weeks.
CPI is also used in calculating the purchasing power of
money and real wage.
8.5
Index Numbers — Theory
Uses/Applications of Index Numbers
Consumer price index number (CPI), Wholesale price
index number (WPI) and Industrial production index
(IIP) are widely used in economic policy making.
1. Consumer index number (CPI) or cost of living
index numbers are helpful in wage negotiation,
formulation of income policy, price policy, rent
control, taxation and general economic policy
formulation.
2. The wholesale price index (WPI) is used to
eliminate the effect of changes in prices on
aggregates, such as national income, capital
formation, etc.
3. Index of industrial production (IIP) gives us a
quantitative figure about the change in production
in the industrial sector.
4. Agricultural production index provides us a ready
reckoner of the performance of agricultural sector.
5. Sensex is a useful guide for investors in the stock
market. If the sensex is rising, it indicates that the
stock market is doing well and investors expect
better earnings from companies. Investors are
optimistic of the future performance of the
economy. It is an appropriate time for investment.
6. Human Development Index (HDI) is an index widely
used to know the development of a country.
7. The WPI is widely used to measure the rate of
inflation. Inflation is a general and continuing
increase in prices. If inflation becomes sufficiently
large, its primary impact lies in lowering the value
of money. The weekly inflation rate is given by:
X t - X t -1
8. X t -1
× 100 where Xt and Xt–1 refer to the WPI for
the tth and (t – 1)th weeks.
CPI are used in calculating the purchasing power
of money and real wage, keeping in view the
inflation.
X t - X t -1
Purchasing power of money = X × 100
t -1
Money wage
Real wage = × 100
Cost of living index
Where can we get these index numbers?
Some of the widely used index numbers — WPI, CPI, Index Number of Yield
of Principal Crops, Index of Industrial Production, Index of Foreign Trade —
are available in Economic Survey.
Extra Shots
Sensex
Sensex is the short form of Bombay Stock Exchange Sensitive Index with
1978–79 as base. The value of the sensex is with reference to this period.
It is the benchmark index for the Indian stock market. It consists of 30
stocks which represent 13 sectors of the economy and the companies
listed are leaders in their respective industries. If the sensex rises, it
indicates that the market is doing well and investors expect better
earnings from companies. It also indicates a growing confidence of
investors in the basic health of the economy.
(Issues/Difficulties/Problems faced in the
construction of an index number
1. Make clear the purpose of the index: We need to
be clear about the purpose of the index. Calculation
of a volume index will be inappropriate, when one
needs a value index.
2. Careful selection of the items to be included in
any index: The items may not be equally important
for different groups of consumers when a consumer
price index is constructed. The rise in petrol price
may not directly impact the living condition of the
poor agricultural labourers. However, it affects
directly on the cost of living of the urban consumers.
Thus, the items to be included in any index have to be
selected carefully to be as representative as possible.
Only then we will get a meaningful picture of the
change.
3. Careful selection of base year: Every index should
have a base year.
 The base year should be as normal as possible.
 Years having extreme values(i.e. extremely low or
high values) should not be selected as base year.
 The period should also not belong to too far in
the past. The comparison between 2011 and 2018
is much more meaningful than a comparison
between 1960 and 2018.
 Many items in a typical consumption basket of
the base year (say 2000) may have disappeared at
present, and many new items have been added in
the current year (2019). Therefore, the base year
for any index number is routinely updated.
4. Choice of the formula: The choice of formula
largely depends on the question of interest. The
only difference between the Laspeyre’s index and
Paasche’s index is the weights used in these
formulae. Laspeyer’s price index uses the base
period quantities as weights, whereas Paasche’s
price index uses the current period quantities as
weights.
5. Collection of data with due care: There are many
sources of data with different degrees of reliability.
Data of poor reliability will give misleading results.
Hence, due care should be taken in the collection of
data. If primary data are not being used, then the most
reliable source of secondary data should be chosen.
6. Selection of prices: The next difficulty is to obtain
price quotations for the base year and current year.
7. System of weighting: Another difficulty is related
to weighting. The difficulty is related to:
 By what do we weight
 What type of weight is to be used, and
 The time from which weights should be taken.
Importance of Index Numbers
1. To simplify complicated matters: Index numbers
present the given information in such a manner
that it can be easily understood.
2. To measure comparative changes: Index
numbers facilitate comparison of change from
time to time, among different places and in series
expressed in different units. The changes in price
level, cost of living, etc. which are not capable of
measurement directly are measured with the help
of index numbers.
3. To frame suitable policies: Index numbers guide
a lot in framing suitable economic policies.
For example, wholesale and retail price index numbers
help in economic and business policy-making regarding
price, output, demand, sales, etc. The indices of
consumption of various commodities help in the
planning of their future production. Index numbers are
applied with advantage for formulating and revising
their policies from time to time.
4. To measure the purchasing power of money: Index
numbers are helpful in measuring the purchasing
power, i.e., value of the money. This helps in fixing
proper wage policy in the country.
5. To study trends and to make forecast: Index numbers
are most widely used for measuring changes over a
period of time. On the basis of present indices, the
forecast for the future can be made.
Limitations of Index Numbers
1. It provides only relative changes: Since index
numbers are based on sample data, they only
provide approximate results which may not exactly
represent the changes in relative levels.
2. Index numbers do not reflect perfect accuracy:
There are more chances of errors in construction of
index numbers. It may be any where from level of
selection of commodities to choice the formula.
3. It considers only quantitative changes: Index
numbers often find difficulty to record change in
the quality variable.
4. Different methods of measuring index number
give different results: There does not exist a
unique index number method which is acceptable
to all.
5. Misuse of index numbers: Index numbers are
also misused by dishonest persons to draw
desirable conclusions for their selfish motives.
Steps involved in the calculation of
Consumer Price Index (CPI)
1. Selection of the Consumer Class: First of all, it
should be determined, for whom CPI is to
calculate i.e., for industrial labour, farmers, govt
employee etc.
2. Information about the Family Budget: After the
selection of consumer class, information about
their family budget should be collected i.e., what
they consume, how much they consume, prices of
the concerned goods and services etc.
3. Choice of Base Year: After this, base year
selection should be done. It should be a normal
year without much ups and downs.
4. Information about Prices: The data regarding
retail prices of selected goods and services should
be collected from the concerned area, where the
selected consumer group lives and makes the
purchases.
5. Weightage: Selected items should be given
weights according to their relative importance.
6. Selection of Method: At the end, it should be
decided that aggregative expenditure method
should be used or family budget method should be
used to measure CPI.
Importance of Consumer Price Index (CPI)
or Cost of Living Index
1. Formulation of policies: CPI helps the
government in formulation of various policies
regarding taxation, prices, rent control, fiscal
policy, general economic policies, etc.
2. Determination of dearness allowance (DA):
CPI helps in the determination of dearness
allowance, on the basis of government employees'
salaries are hiked to compensate the rising price
level.
3. To calculate the purchasing power of money
and real wage: CPI or Cost of Living Index is also
used in calculating the purchasing power of money
and real wage.
1
Purchasing power of money =
Money wage
Real wage = × 100
Desirable Properties of the Base Period
1. The base year should be as normal as possible. Years
having extreme values (i.e. extremely low or high
values) should not be selected as base year.
2. The period should also not belong to too far in the
past. The comparison between 2015 and 2020 is
much more meaningful than a comparison between
1960 and 2020.
3. Many items in a typical consumption basket of the
base year (say 2000) may have disappeared at
present, and many new items have been added in
the current year (2020). Therefore, the base year for
any index number is routinely updated.
Difference between a Price Index and a
Quantity Index
Price index numbers measure and permit comparison
of the prices of certain goods. Price index numbers
are more widely used. On the other hand, quantity
index numbers measure the changes in the physical
volume of production, construction or employment.
A quantity index number is also an important
indicator of the level of the output in the economy.
Illustrations
Illustration 1: Calculate the price index number

by: (i) Laspeyre’s method (ii) Paasche’s method.
Also, interpret the results.
Illustration 11: A price index of two items of A and
B is being estimated. If two items are assigned
weights of 64 and 36 respectively, the price index
becomes 279. Similarly, if they are assigned weights
of 50 each, the price index turns out to be 265.
Determine the individual price index number of
items A and B.
Solution: Let I1 and I2 be the price index numbers of
items A and B respectively.
Question 1
An index number which accounts for the relative
importance of the items is known as _______.
(a) weighted index
(b) simple aggregative index
(c) simple average of relatives
(d) None of these

Answer 1
(a) weighted index

Question 2
In most of the weighted index numbers the weight
pertains to ________. (Choose the correct alternative)
(a) base year
(b) current year
(c) both base and current year
(d) None of these

Answer 2
(a) base year

Question 3
The impact of change in the price of a commodity with
little weight in the index will be ______.
(a) small
(b) large
(c) uncertain
(d) None of these

Answer 3
(a) small

Question 4
A consumer price index measures changes in ________.
(a) retail prices
(b) wholesale prices
(c) producers prices
(d) None of these

Answer 4
(a) retail prices

Question 5
The item having the highest weight in consumer price
index for industrial workers is ______.
(a) Food
(b) Housing
(c) Clothing
(d) None of these

Answer 5
(a) Food

Question 6
In general, inflation is calculated by using ________.
(a) wholesale price index
(b) consumer price index
(c) producers’ price index
(d) None of these

Answer 6
(a) wholesale price index

Question 7
___________ is a statistical device for measuring relative
change in a large number of items.
(a) Measures of Dispersion
(b) Correlation
(d) Index number

Answer 7
(d) Index number

Question 8
____________ measure the changes in the physical
volume of production, construction or employment.
(a) Price index numbers
(b) Quantity index numbers

Answer 8
(b) Quantity index numbers

Question 9
The value in the base period is given the index number
(a) 1
(b) 0
(c) 100
(d) None of these

Answer 9
(c) 100

Question 10
An index number of 150 indicates that the value is
__________ times that of the base period.
(a) 150
(b) 1.5
(c) 50
(d) None of these

Answer 10
(b) 1.5

Question 11
The formula for a weighted aggregative price index under
Laspeyre’s method is: (Choose the correct alternative)
(a) P01 = (b) P01 =
(c) P01 = (d) P01 =

Answer 11
(b) P01 =

Question 12
The formula for a weighted aggregative price index under
Laspeyre’s method is: (Choose the correct alternative)
(a) P01 = (b) P01 =
(c) P01 = (d) P01 =

Answer 12
(c) P01 =

Question 13
A weighted aggregative price index using base period
quantities as weights, is also known as _________.
(a) Laspeyre’s price index
(b) Paasche’s price index
(c) Fisher’s price index
(d) None of these

Answer 13

Question 14
A weighted aggregative price index using current period
quantities as weights, is also known as _________.
(c) Fisher’s price index
(d) None of these

Answer 14

Question 15
In general, the base period weight is preferred to the
current period weight. Why?

Answer 15
It is because calculating the weight every year is inconvenient.

Question 16
Consumer price index (CPI) is also known as
the_______. Fill in the blank.

Answer 16
cost of living index

Question 17
Consumer price index (CPI) measures the average
change in ______. (Choose the correct alternative)
(a) retail prices
(b) wholesale prices
(c) Average prices
(d) All of these

Answer 17
(a) retail prices

Question 18
The Reserve Bank of India is using the ________ as the
main measure of how consumer prices are changing.
(a) All-India Rural Consumer Index
(b) Consumer Price Index Numbers for Industrial Workers
(c) All-India Urban Consumer Price Index
(d) All-India Combined Consumer Price Index

Answer 18
(d) All-India Combined Consumer Price Index

Question 19
All-India Combined Consumer Price Index is now being
prepared with base 2012 = 100 and many improvements
have been made in accordance with international
standards. The basket of items and weighing diagrams
for the revised series has been prepared using the
________ data of the Consumer Expenditure Survey
(CES), 2011–12 of the 68th Round of National Sample
Survey (NSS). Fill in the blank.

Answer 19
Modified Mixed Reference Period (MMRP)

Question 20
The Consumer Food Price Index (CFPI) is the same as
the Consumer Price Index for all ‘Food and
Beverages’. True/False? Give reason.

Answer 20
False: It does not include alcoholic beverages and
prepared meals, snacks, sweets, etc.

Question 21
_______ indicates the change in the general price level.
Fill in the blank.

Answer 21
The Wholesale price index number

Question 22
What does the statement “WPI with 2011–12 as base is
112.8 in May, 2017” mean?

Answer 22
It means that the general price level has risen by 12.8 per
cent during this period.

Question 23
The ‘All Commodities Inflation Rate’ is often referred to
as _______. Fill in the blank.

Answer 23
‘Headline Inflation’

Question 24
_______ are used in calculating the purchasing
power of money and real wage.
(a) Consumer index number (CPI)
(b) Wholesale price index (WPI)
(c) Index of industrial production (IIP)
(d) All of these

Answer 24
(a) Consumer index number (CPI)

Question 25
Given the Consumer index number (CPI), how is
purchasing power of money calculated?

Answer 25
Purchasing power of money = 1/ CPI

Question 26
Given the money wage and the cost of living index
number, how is real wage calculated?

Answer 26
Money wage
Real wage = ´100

Question 27
If the CPI (2000 = 100) is 400 in January 2019, the
equivalent of a rupee in January 2019 is _______ in 2000.
Fill in the blank.

Answer 27
25 paise(100
400
= 0.25 )

Question 28
A series of numerical figures which show the relative
position is called _________. Fill in the blank.

Answer 28
index number

Question 29
Index number for the base period is always taken as:
(a) 200
(b) 50
(c) 1
(d) 100

Answer 29
(d) 100

Question 30
_________ play a very important part in the construction
of index numbers. (Choose the correct alternative)
(a) weights
(b) classes
(c) estimations
(d) None of these

Answer 30
(a) weights

Question 31
Index numbers show _________ changes rather than
absolute amounts of change. Fill in the blank.

Answer 31
percentage

Question 32
Price relative is equal to:
(a) (Price in the given year ×100)/Price in the
base year
(b) (Price in the year base year × 100)/Price in the
given year
(c) Price in the given year × 100
(d) Price in the base year × 100

Answer 32
(a) (Price in the given year ×100)/Price in the base year

Question 33
Index number is equal to:
(a) sum of price relatives
(b) average of the price relatives
(c) product of price relative
(d) None of these

Answer 33
(b) average of the price relatives

Question 34
A ratio or an average of ratios expressed as a
percentage is called ________. Fill in the blank.

Answer 34
an index number

Question 35
The value at the base time period serves as the
standard point of comparison. (True/False)

Answer 35
True

Question 36
Index numbers are often constructed from the:
(a) frequency
(b) class
(c) sample
(d) None of these

Answer 36
(c) sample

Question 37
________ is a point of reference in comparing various
data describing individual behaviour.
(a) Sample
(b) Base period
(c) Estimation
(d) None of these

Answer 37
(b) Base period

Question 38
The purpose determines the type of index number to use.
(True/False)

Answer 38
True

Question 39
The index number is a special type of average.
(True/False)

Answer 39
True

Question 40
We use price index numbers:
(a) to measure and compare prices
(b) to measure prices
(c) to compare prices
(d) None of these

Answer 40
(a) To measure and compare prices

Question 41
Paasche’s price index is based on:
(a) Base year quantities
(b) Current year quantities
(c) Average of current and base year
(d) None of these

Answer 41
(b) Current year quantities

Question 42
Price-relative is expressed in terms of:
(a) P = p1/p0
(b) P = p0/p1
(c) P = p1/p0 × 100
(d) P = p0/p1 × 100

Answer 42
(c) P = p1/p0 × 100

Question 43
Paasche’s price index number is expressed in terms of:
(a) P01 = (b) P01 =
(c) P01 = (d) P01 =

Answer 43
(C) p01 =

Question 44
Paasche’s price index number is expressed in terms of:
(a) (b)
(c) (d)

Answer 44
(b)

Question 45
If the index number of prices at a place in 2020 is 250
with 2010 as base year, then the prices have increased on
average by:
(a) 250%
(b) 150%
(c) 350%
(d) None of these

Answer 45
(b) 150%

Question 46
If the prices of all commodities in a place have
decreased 35% over the base periodprices, then the
index number of prices of that place is now:
(a) 35
(b) 135
(c) 65
(d) None of these.

Answer 46
(c) 65

Question 47
Consumer Price index number for the year 2020 was 313
with 2000 as the base year 96 the Average Monthly
wages in 2020 of the workers into factory be `160 their
real wages is:
(a) `48.40
(b) `51.12
(c) `40.30
(d) None of these

Answer 47
(b) `51.12

Question 48
If Σp0q0 = 3500, Σp1q0 = 3850, then the Cost of living
Index for the year 2020 w.r.t base year 2015 is:
(a) 110
(b) 90
(c) 100
(d) None of these

Answer 48
(a) 110

Question 49
Which of the following statement is false?
(a) The choice of suitable base period is at best a
temporary solution.
(b) The index number is a special type of average.
(c) Those is no such thing as unweighted index
numbers.
(d) Theoretically, geometric mean is the best average
in the construction of index numbers but in
practice, mostly the arithmetic mean is used.

Answer 49
(c) Those is no such thing as unweighted index numbers.

Question 50
From the following data for the 5 groups combined, the
general index number will be:
(a) 270
(b) 269.2
(c) 268.5
(d) 272.5

Answer 50
(b) 269.2

Question 51
From the following data with 2010 as base year, the price
per unit of commodity A in 2010 is:
(a) `5 (b) `6
(c) `4 (d) `1

Answer 51
(a) `5

Question 52
The index number in whole sale prices is 152 for August
2019 compared to August 2018. During the year there is
net increase in prices of whole sale commodities to the
extent of: (Choose the correct alternative)
(a) 45%
(b) 35%
(c) 52%
(d) 48%

Answer 52
(c) 52%

Question 53
The value index is expressed in terms of:
(a) (b)
(c) (d)

Answer 53
(b)

Question 54
Purchasing Power of Money is:
(a) reciprocal of price index number.
(b) equal to price index number.
(c) unequal to price index number.
(d) None of these

Answer 54
(a) reciprocal of price index number.

Question 55
The price level of a country in a certain year has
increased 25% over the base period. The index number
is: (Choose the correct alternative)
(a) 25
(b) 125
(c) 225
(d) 2500

Answer 55
(b) 125

Question 56
The index number of prices at a place in 2020 is 355 with
2010 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
Answer 56
(a) There has been on the average a 255% increase in prices.

Question 57
The wholesale price index number or agricultural
commodities in a given region at a given date is 280.
The percentage increase in prices of agricultural
commodities over the base year is:
(a) 380
(b) 280
(c) 180
(d) 80

Answer 57
(c) 180

Question 58
From the following data, the price index number is:
(Choose the correct alternative)\
(a) 150.9
(b) 155.8
(c) 145.8
(d) None of these
Answer 58
(a) 150.9

Question 59
From the following data, the simple aggregative price
index is: (Choose the correct alternative)
(a) 115.8
(b) 110.8
(c) 112.5
(d) 113.4
Answer 59
(b) 110.8

Question 60
The cost of living Index is always:
(a) Weighted index
(b) Price Index
(c) Quantity Index
(d) None of these

Answer 60
(a) Weighted index

Question 61
The value index is equal to:
(a) The total sum of the values of a given year
multiplied by the sum of the values of the base year.
(b) The total sum of the values of a given year divided
by the sum of the values of the base year.
(c) The total sum of the values of a given year plus
(d) None of these

Answer 61
(b) The total sum of the values of a given year divided

Question 62
From the following data, the general index number is:
(a) 111.3
(b) 113.45
(c) 117.25
(d) 114.75

Answer 62
(a) 111.3

Question 63
From the following data, the cost of living index
number is: (Choose the correct alternative)
(a) 224.5
(b) 223.9
(c) 225.3
(d) None of these

Answer 63
(d) None of these

Question 64
The prices of a commodity in the year 2015 and 2020
were 25 and 30 respectively. Taking 2015 as base year
the price relative is: (Choose the correct alternative)
(a) 120
(b) 135
(c) 122
(d) None of these

Answer 64
(a) 120

Question 65
Cost of Living Index numbers are also used to find real
wages by the process of deflating of index number.
(True/False)

Answer 65
True

Question 66
Daily income of an employee was `800 in 2015. The
consumer price index number was 160 in 2015. It is
rises to 200 in 2020. If he has to be rightly compensated.
The additional dearness allowance to be paid to the
employee is: (Choose the correct alternative)
(a) `240
(b) `275
(c) `250
(d) None of these

Answer 66
(a) `240

Question 67
If the price index for the year, say 2020 be 110.3 and the
price index for the year, say 2010 be 98.4, then the
purchasing power of money (in `) of 2010 will in 2020 is:
(a) `1.12
(b) `1.25
(c) `1.37
(d) None of these

Answer 67
(a) `1.12

Question 68
If Σp0q0 =1360, Σp1q0 =1900, Σp0q1 =1344, Σp1q1
=1880, then the Laspeyre’s Index number is:
(a) 0.71
(b) 1.39
(c) 1.75
(d) None of these

Answer 68
(b) 1.39

Question 69
Group index number is represented by:
(a)
(b)
(c)
(d) None of these

Answer 69
(b)

Question 1
What does a consumer price index for industrial workers
measure? (1 mark)
Brain Teaser
Answer 1
A consumer price index for industrial workers measures
the impact of change in retail prices on the cost of living
of industrial workers.
Brain Teaser
Question 2
Is the change in any price reflected in a price index
number? (1 mark)
Brain Teaser
Answer 2
No, because a price index number is a single measure of
change in prices of a large number of items. It reflects
only the relative change in the prices of the basket of
commodities between the base period and the current
period.
Brain Teaser
Question 3
Can the CPI for urban non-manual employees represent the
changes in the cost of living of the President of India?
(1 mark)
Brain Teaser
Answer 3
No, because the consumption basket of urban non-manual
employees will include different items than that of the
President of India.
Brain Teaser
Question 4
Which of the following helps in answering the question
that, if the current period basket of commodities was
consumed in the base period and if we were spending
`100 on it, how much should be the expenditure in
current period on the same basket of commodities?
(Choose the correct alternative) (1mark)
(b) Paasche’s Price Index
(c) Fisher’s Ideal Price Index
(d) Simple aggregative price index
Brain Teaser
Answer 4
(b) Paasche’s Price Index
Brain Teaser
Question 5
Consider the following statement:
CPI for industrial workers (2001 = 100) is 278 in May
2017.
What does this statement mean? (1 mark)
Brain Teaser
Answer 5
It means that if the industrial worker was spending
`100 in 2001 for a typical basket of commodities, he
needs `278 in May 2017 to be able to buy an identical
basket of commodities.
Brain Teaser
Question 6
If the CPI is 150, what does it indicate? (1 mark)
Brain Teaser
Answer 6
It indicates that 50 per cent upward adjustment in
wages and salaries is required. The salaries of the
employees have to be raised by 50 per cent.
Brain Teaser
Question 7
If the CPI (1990=100) is 500 in January 2019, and the
money wage of the consumer is `10,000, what will be
his real wage? (1 mark)
Brain Teaser
Answer 7
100
´
Real wage = `10,000 × = ` 2,000
500
Brain Teaser
Question 8
The CPI (1998=100) is 526 in January 2019.
Suppose, the consumer was getting `3,000 in 1998.
To maintain the 1998 standard of living, what should be
his salary? (1 mark)
Brain Teaser
Answer 8
526
`3,000 × = `15,780.
100
Brain Teaser
Question 9
If the prices of all commodities in a place have increased
1.25 times in comparison to the base period, the index
number of prices of that place now is:
(a) 125
(b) 150
(c) 225
(d) None of these
Brain Teaser
Answer 9
(c) 225
Brain Teaser
Question 10
In 2015, the daily income of the employee was `800.
The consumer price index number was 160 in 2015. It
rises to 200 in 2020. If he has to be rightly compensated,
the additional dearness allowance (DA) to be paid to the
employee is: (Choose the correct alternative) (1mark)
(a) `175
(b) `185
(c) `200
(d) `125
Brain Teaser
Answer 10
(c) `200
Brain Teaser
Question 11
With the base year 2010 the cost of living index in 2020
stood at 250. X was getting a daily wage of `500 in 2010
and `750 in 2020. In 2020 to maintain his standard of
living in 2010, X has to receive as extra allowance of:
(a) `600
(b) `500
(c) `300
(d) None of these
Brain Teaser
Answer 11
(b) `500
Brain Teaser
Question 12
If in the year 2020 price index with base 2015 is 200 and
2015 price index with base 2010 is 150, the price index
2020 with base 2010 will be:
(a) 700
(b) 300
(c) 500
(d) 600
Brain Teaser
Answer 12
(b) 300
Brain Teaser
Question 13
Consumer price index number goes up from 110 to 200
and the Salary of a worker is also raised from `325 to
`500. Therefore, in real terms, to maintain his previous
standard of living he should get an additional amount of:
(a) `85
(b) `90.91
(c) `98.25
(d) None of these
Brain Teaser
Answer 13
(b) `90.91
Brain Teaser
Question 14
During a certain period the cost of living index number
goes up from 110 to 200 and the salary of a worker is
also raised from `330 to `500. The worker does not get
really gain. Then the real wages decreased by:
(a) `45.45
(b) `43.25
(c) `100
(d) None of these
Brain Teaser
Answer 14
(c) `100
Brain Teaser
Question 15
During the certain period the cost of living index goes up
from 110 to 200 and the daily wage of a worker is also
raised from `330 to `500, then the real terms is:
(a) Loss by `50
(b) Loss by `75
(c) Loss by `90
(d) None of these
Brain Teaser
Answer 15
(a) Loss by `50
Brain Teaser
Question 16
Why is it essential to have different CPI for different
categories of consumers? (1 mark)
Brain Teaser
Answer 16
It is essential to have different CPI for different
categories of consumers because the consumption
pattern of different categories of the consumers varies
significantly. Moreover, the items may not be equally
important for different groups of consumers when a
consumer price index is constructed. The rise in petrol
price may not directly impact the living condition of
the poor agricultural labourers. However, it affects
directly on the cost of living of the urban consumers.
Brain Teaser
Question 17
From the following data, the Paasche’s price index is:
(3 marks)
(a) 146.41
(b) 148.25
(c) 144.25
(d) None of these
Brain Teaser
Answer 17
(a) 146.41
Brain Teaser
Question 18
From the following data, the Paasche’s price index is:
(3 marks)
(a) 125.38
(b) 147.25
(c) 129.8
(d) None of these
Brain Teaser
Answer 18
(d) None of these
Brain Teaser

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Introduction

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Time Allowed: 45 minutes Maximum Marks: 20

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Time Allowed: 45 minutes Maximum Marks: 25

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