TQC1 MATH 2520
Probability & Statistics II
COMPLETE FA REVIEW
© 2024
,1. Question:
The Central Limit Theorem states that:
A. The sample mean will always equal the population mean.
B. For a large enough sample size, the sampling distribution of
the sample mean approaches a normal distribution.
C. The sample size does not influence the distribution of the
sample mean.
D. The probability of an event can always be determined by
normal approximation.
Answer:
B. For a large enough sample size, the sampling distribution of
the sample mean approaches a normal distribution.
Rationale:
The Central Limit Theorem ensures that regardless of the
population distribution, the sampling distribution of the sample
mean will be approximately normally distributed for large sample
sizes.
2. Question:
What is a Type I error in hypothesis testing?
© 2024
, A. Failing to reject a false null hypothesis.
B. Rejecting a false null hypothesis.
C. Failing to reject a true null hypothesis.
D. Rejecting a true null hypothesis.
Answer:
D. Rejecting a true null hypothesis.
Rationale:
A Type I error occurs when the null hypothesis, which is true, is
incorrectly rejected.
3. Question:
In the context of regression analysis, multicollinearity refers to:
A. The situation where the independent variables are correlated
with each other.
B. The situation where the dependent variable is correlated with
one or more independent variables.
C. The condition of heteroscedasticity.
D. The condition of autocorrelation.
© 2024
, Answer:
A. The situation where the independent variables are correlated
with each other.
Rationale:
Multicollinearity occurs when two or more independent variables
in a regression model are highly correlated, making it difficult to
distinguish their individual effects on the dependent variable.
4. Question:
The Law of Large Numbers states that as the number of trials
increases, the sample mean:
A. Stays constant.
B. Diverges from the population mean.
C. Converges to the sample mean.
D. Converges to the population mean.
Answer:
D. Converges to the population mean.
Rationale:
© 2024
Probability & Statistics II
COMPLETE FA REVIEW
© 2024
,1. Question:
The Central Limit Theorem states that:
A. The sample mean will always equal the population mean.
B. For a large enough sample size, the sampling distribution of
the sample mean approaches a normal distribution.
C. The sample size does not influence the distribution of the
sample mean.
D. The probability of an event can always be determined by
normal approximation.
Answer:
B. For a large enough sample size, the sampling distribution of
the sample mean approaches a normal distribution.
Rationale:
The Central Limit Theorem ensures that regardless of the
population distribution, the sampling distribution of the sample
mean will be approximately normally distributed for large sample
sizes.
2. Question:
What is a Type I error in hypothesis testing?
© 2024
, A. Failing to reject a false null hypothesis.
B. Rejecting a false null hypothesis.
C. Failing to reject a true null hypothesis.
D. Rejecting a true null hypothesis.
Answer:
D. Rejecting a true null hypothesis.
Rationale:
A Type I error occurs when the null hypothesis, which is true, is
incorrectly rejected.
3. Question:
In the context of regression analysis, multicollinearity refers to:
A. The situation where the independent variables are correlated
with each other.
B. The situation where the dependent variable is correlated with
one or more independent variables.
C. The condition of heteroscedasticity.
D. The condition of autocorrelation.
© 2024
, Answer:
A. The situation where the independent variables are correlated
with each other.
Rationale:
Multicollinearity occurs when two or more independent variables
in a regression model are highly correlated, making it difficult to
distinguish their individual effects on the dependent variable.
4. Question:
The Law of Large Numbers states that as the number of trials
increases, the sample mean:
A. Stays constant.
B. Diverges from the population mean.
C. Converges to the sample mean.
D. Converges to the population mean.
Answer:
D. Converges to the population mean.
Rationale:
© 2024
