Statistics for Business and Economics:
2026 Solved Exams
Data Analysis, Probability & Decision Modeling (100 Questions)
1. What is the difference between "Descriptive Statistics" and "Inferential Statistics"?
A) Descriptive uses math, Inferential uses guessing
B) Descriptive summarizes data; Inferential makes predictions/inferences about a population
based on a sample
C) Descriptive is for small data; Inferential is for big data
D) Descriptive is for business; Inferential is for physics
Correct Answer: B) Descriptive summarizes data; Inferential makes
predictions/inferences about a population based on a sample
2. The "Mean" of a dataset is:
A) The middle value when sorted
B) The average (sum of values divided by the count)
C) The most frequently occurring value
D) The difference between the highest and lowest value
Correct Answer: B) The average (sum of values divided by the count)
3. The "Median" is the:
A) Middle value in an ordered dataset
B) Average of all values
C) Most common value
D) Value that appears exactly 50% of the time
Correct Answer: A) Middle value in an ordered dataset
4. The "Mode" is the:
A) Value with the highest frequency
B) Value with the lowest frequency
C) Average of the first and last value
D) Value in the middle
Correct Answer: A) Value with the highest frequency
5. What is the "Range" of a dataset?
A) Mean minus Median
B) Maximum value minus Minimum value
,C) Standard deviation squared
D) Number of outliers
Correct Answer: B) Maximum value minus Minimum value
6. "Variance" measures:
A) The average distance of data points from the mean
B) The average of the squared deviations from the mean
C) The difference between the median and mode
D) The total number of data points
Correct Answer: B) The average of the squared deviations from the mean
7. "Standard Deviation" is:
A) The square root of the variance
B) The square of the variance
C) Equal to the range
D) The same as the mean
Correct Answer: A) The square root of the variance
8. What does a "Normal Distribution" (Bell Curve) look like?
A) Skewed to the left
B) Symmetrical, with the mean, median, and mode at the center
C) Flat line
D) Skewed to the right
Correct Answer: B) Symmetrical, with the mean, median, and mode at the center
9. In a normal distribution, what percentage of data falls within +/- 1 standard deviation of
the mean?
A) 50%
B) 68%
C) 95%
D) 99.7%
Correct Answer: B) 68%
10. What is a "Type I Error" in hypothesis testing?
A) Failing to reject a false null hypothesis
B) Rejecting a true null hypothesis (False Positive)
C) Accepting a true null hypothesis
D) Ignoring the data
, Correct Answer: B) Rejecting a true null hypothesis (False Positive)
11. What is a "Type II Error"?
A) Rejecting a true null hypothesis
B) Failing to reject a false null hypothesis (False Negative)
C) Accepting a true null hypothesis
D) Making an error in data collection
Correct Answer: B) Failing to reject a false null hypothesis (False Negative)
12. The "p-value" represents:
A) The probability of obtaining results at least as extreme as the observed results, assuming the
null hypothesis is true
B) The probability that the hypothesis is 100% correct
C) The size of the sample
D) The variance of the dataset
Correct Answer: A) The probability of obtaining results at least as extreme as the
observed results, assuming the null hypothesis is true
13. If the p-value is less than the significance level (alpha, typically 0.05), you:
A) Accept the null hypothesis
B) Reject the null hypothesis
C) Do nothing
D) Change the data
Correct Answer: B) Reject the null hypothesis
14. "Correlation" measures:
A) Causation between two variables
B) The strength and direction of the linear relationship between two variables (-1 to 1)
C) The slope of a line
D) The number of variables in a study
Correct Answer: B) The strength and direction of the linear relationship between two
variables (-1 to 1)
15. "Simple Linear Regression" is used to:
A) Calculate the mean of a variable
B) Predict the value of a dependent variable based on one independent variable
C) Compare two groups
D) Find the median of a dataset
Correct Answer: B) Predict the value of a dependent variable based on one independent
variable
16. The "Coefficient of Determination" (R-squared) tells you:
A) The slope of the regression line
B) The proportion of the variance in the dependent variable explained by the independent
variable
2026 Solved Exams
Data Analysis, Probability & Decision Modeling (100 Questions)
1. What is the difference between "Descriptive Statistics" and "Inferential Statistics"?
A) Descriptive uses math, Inferential uses guessing
B) Descriptive summarizes data; Inferential makes predictions/inferences about a population
based on a sample
C) Descriptive is for small data; Inferential is for big data
D) Descriptive is for business; Inferential is for physics
Correct Answer: B) Descriptive summarizes data; Inferential makes
predictions/inferences about a population based on a sample
2. The "Mean" of a dataset is:
A) The middle value when sorted
B) The average (sum of values divided by the count)
C) The most frequently occurring value
D) The difference between the highest and lowest value
Correct Answer: B) The average (sum of values divided by the count)
3. The "Median" is the:
A) Middle value in an ordered dataset
B) Average of all values
C) Most common value
D) Value that appears exactly 50% of the time
Correct Answer: A) Middle value in an ordered dataset
4. The "Mode" is the:
A) Value with the highest frequency
B) Value with the lowest frequency
C) Average of the first and last value
D) Value in the middle
Correct Answer: A) Value with the highest frequency
5. What is the "Range" of a dataset?
A) Mean minus Median
B) Maximum value minus Minimum value
,C) Standard deviation squared
D) Number of outliers
Correct Answer: B) Maximum value minus Minimum value
6. "Variance" measures:
A) The average distance of data points from the mean
B) The average of the squared deviations from the mean
C) The difference between the median and mode
D) The total number of data points
Correct Answer: B) The average of the squared deviations from the mean
7. "Standard Deviation" is:
A) The square root of the variance
B) The square of the variance
C) Equal to the range
D) The same as the mean
Correct Answer: A) The square root of the variance
8. What does a "Normal Distribution" (Bell Curve) look like?
A) Skewed to the left
B) Symmetrical, with the mean, median, and mode at the center
C) Flat line
D) Skewed to the right
Correct Answer: B) Symmetrical, with the mean, median, and mode at the center
9. In a normal distribution, what percentage of data falls within +/- 1 standard deviation of
the mean?
A) 50%
B) 68%
C) 95%
D) 99.7%
Correct Answer: B) 68%
10. What is a "Type I Error" in hypothesis testing?
A) Failing to reject a false null hypothesis
B) Rejecting a true null hypothesis (False Positive)
C) Accepting a true null hypothesis
D) Ignoring the data
, Correct Answer: B) Rejecting a true null hypothesis (False Positive)
11. What is a "Type II Error"?
A) Rejecting a true null hypothesis
B) Failing to reject a false null hypothesis (False Negative)
C) Accepting a true null hypothesis
D) Making an error in data collection
Correct Answer: B) Failing to reject a false null hypothesis (False Negative)
12. The "p-value" represents:
A) The probability of obtaining results at least as extreme as the observed results, assuming the
null hypothesis is true
B) The probability that the hypothesis is 100% correct
C) The size of the sample
D) The variance of the dataset
Correct Answer: A) The probability of obtaining results at least as extreme as the
observed results, assuming the null hypothesis is true
13. If the p-value is less than the significance level (alpha, typically 0.05), you:
A) Accept the null hypothesis
B) Reject the null hypothesis
C) Do nothing
D) Change the data
Correct Answer: B) Reject the null hypothesis
14. "Correlation" measures:
A) Causation between two variables
B) The strength and direction of the linear relationship between two variables (-1 to 1)
C) The slope of a line
D) The number of variables in a study
Correct Answer: B) The strength and direction of the linear relationship between two
variables (-1 to 1)
15. "Simple Linear Regression" is used to:
A) Calculate the mean of a variable
B) Predict the value of a dependent variable based on one independent variable
C) Compare two groups
D) Find the median of a dataset
Correct Answer: B) Predict the value of a dependent variable based on one independent
variable
16. The "Coefficient of Determination" (R-squared) tells you:
A) The slope of the regression line
B) The proportion of the variance in the dependent variable explained by the independent
variable
