13 Most VSAQ’s of Basic Statistics for Economics Chapter in Inter 1st Year Economics (TS/AP)

2 Marks

VSAQ-1 : Discuss the importance of statistics for the study of economics. (OR) Explain the importance of statistics. (OR) Role of statistics in economics.

Statistics is vital in economics for data analysis, forecasting, and informed decision-making. It enables economists to gather and interpret economic data, predict trends, and assess policy effectiveness, ultimately advancing economic knowledge.

VSAQ-2 : Compute median for the following data: 5,7,7,8,9,10,12,15 and 21 (OR) Find out median to the: 5,7,7,8,9,10,12,15,21.

The median of the data set {5, 7, 7, 8, 9, 10, 12, 15, 21} is 9.

VSAQ-3 : Explain the concept of mode. (OR) Concept of Mode

The mode in a set of observations is the most frequently occurring value within the data. If there are two or more values that appear with the same highest frequency, and this frequency is greater than any other values, then the data is described as bimodal or multimodal.

VSAQ-4 : Explain the concept of Geometric mean.

The geometric mean is computed by taking the nth root of the product of ‘n’ numbers. It is particularly useful when dealing with values that are products of each other. For instance, to find the geometric mean of 2 and 8, we calculate the square root of (2 × 8), resulting in an answer of 4. Similarly, for numbers 2, 3, and 6, the geometric mean involves finding the cube root of (2 × 3 × 6), yielding an approximate value of 3.3.

VSAQ-5 : Find the mode from the following data.

In the provided data set for wages: 380, 430, 480, 480, 480, 480, 520, 590, 600, and 600, the mode is 480 since it appears most frequently (four times) in the dataset.

VSAQ-6 : Arithmetic Mean (OR) What is arithmetic mean?

The arithmetic mean, often referred to as the mean, is a measure of central tendency. It is computed by summing up all values within a dataset and then dividing that sum by the total number of values. Mathematically, it is expressed as:

Arithmetic Mean (Mean) = (Sum of all values) / (Number of values)

For example, to calculate the mean of the numbers 5, 7, and 9, you would add them together (5 + 7 + 9 = 21) and then divide by the number of values (3), resulting in a mean of 7.

VSAQ-7 : Median (OR) What is median?

The median is the middle value in a dataset. It is determined by first arranging the data in ascending or descending order and then selecting the value that falls in the middle position. If there are two middle values, the median is found by averaging those two values.

VSAQ-8 : Explain the concept of Harmonic Mean?

The harmonic mean is determined by first finding the reciprocals of each value in a dataset. Next, you calculate the arithmetic average of these reciprocals. Finally, you take the reciprocal of that average to obtain the harmonic mean. Mathematically, it is represented as:

Harmonic Mean (H.M) = N / (∑(1/X))

Here, X represents the values in the dataset, and N is the total number of values. This measure is particularly useful in situations where rates or ratios are involved, such as calculating average speeds or rates of return.

VSAQ-9 : The following are the marks obtained by 8 students in a test. Calculate arithmetic mean: 70,43,35,47,50,65,80,92.

The arithmetic mean (average) of the marks obtained by the 8 students in the test is calculated by adding up all the marks and then dividing by the number of students:

(70 + 43 + 35 + 47 + 50 + 65 + 80 + 92) / 8 = 482 / 8 = 60.25

So, the arithmetic mean is 60.25.

VSAQ-10 : What are the merits of Median?

  1. Robust to Outliers: The median is not affected by extreme values, providing a more stable measure of central tendency.
  2. Suitable for Skewed Data: It works well with skewed distributions, accurately representing central positioning.
  3. Easy to Understand: The concept is straightforward, making it accessible for interpretation.
  4. Ordinal Data Friendly: Ideal for ordinal data, respecting the order of categories.
  5. Resistant to Extreme Values: Less influenced by extreme data points than the mean.
  6. Applicable to Non-Numeric Data: Works with non-numeric data, enhancing versatility in various contexts.

VSAQ-11 : What are the advantages of diagrams?

  1. Visual Engagement: Diagrams are visually appealing and engage audiences effectively, aiding in better comprehension.
  2. No Math Expertise Needed: They do not require advanced mathematical skills, making complex information accessible to a wider audience.
  3. Simplified Data Representation: Diagrams simplify complex data, making it easier to understand and communicate.
  4. Facilitates Comparisons: They enable straightforward comparisons between data points or categories.
  5. Enhances Memory Retention: Visual representation enhances memory recall, helping individuals retain information.
  6. Efficient Information Conveyance: Diagrams efficiently convey information, allowing for quicker understanding and decision-making.

VSAQ-12 : Pie-diagram?

A pie diagram, commonly referred to as a pie chart, is a circular representation that divides its area into segments. These segments visually depict the relative proportions of various components or categories within a variable.

VSAQ-13 : What is the Geometric mean of two numbers, 4 and 16?

The geometric mean of two numbers, 4 and 16, is calculated as follows:

Geometric Mean = √(4 × 16) = √64 = 8.