The geometric mean is more appropriate than the arithmetic mean when the data are: MCQ with Answer and Explanation

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The geometric mean is more appropriate than the arithmetic mean when the data are:

A. Negative

B. Multiplicative in nature (ratios, growth rates)

C. Qualitative

D. Additive in nature

Answer: Option B

Solution (By JKSSB Mock Tests)

GM is suited for averaging ratios because it reflects compounding.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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If N = 100, (A) = 60, (B) = 50, what is the condition for attributes A and B to be independent?

A. (AB) = 110

B. (AB) = 30

C. (AB) = 0

D. (AB) = 10

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Correct Answer: Option B

Explanation:
Two attributes are independent if (AB) = (A) × (B) / N. Here, (60 × 50) / 100 = 30.

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Question #2

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Secondary data is characterized by which of the following?

A. It requires more time and resources to collect than primary data

B. It was originally collected by someone else for a different purpose

C. It is collected by the investigator for the first time

D. It is always more accurate than primary data

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Correct Answer: Option B

Explanation:
Secondary data refers to information that was previously gathered by another party for a different objective and is now being reused for a new study.

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Question #3

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Vital statistics are crucial for calculating which of the following indicators?

A. Human Development Index (HDI)

B. Gross Domestic Product (GDP)

C. Literacy Rate

D. Infant Mortality Rate (IMR)

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Correct Answer: Option D

Explanation:
IMR directly uses vital statistics data on live births and infant deaths; other options rely on broader datasets (e.g., GDP on economic surveys, HDI on multiple sources, literacy on census/surveys).

This question belongs to: Accountancy and Statistics Statistics

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