COMMERCE MCQs 01 _ Questions and answers with explanation _ Cost Accounting

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NTA UGC NET - Commerce - UNIT 05: Business Statistics And Research Methods (PART 03)

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UNIT 05
Business Statistics And Research Methods
PART 03
 
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MCQ: The approach which assumes that various outcomes of an event are equally likely
 
a. Relative frequency theory of Probability
 
b. Classical probability
 
c. Subjective probability
 
d. None of the above
 
 
Theory of Probability

  • It was bought into the shape of theory by Cardon

  • Literally probability means the ‘Chance of happening’

  • The probability of an event lies between 0 and 1

  • If the happening of a n event is certain the probability is said to be unity (=1)

  • If the happening of a n event is impossible, the probability is said to be zero

  • Value of probability rages from zero to one and always a non- negative
 
 
Classical Probability – a priori probability
 
Relative frequency theory of Probability

  • Statistical/empirical/posteriori probability

  • Probability is derived from past records or

  • On the basis of relative frequency of success in the past
 
Subjective probability

  • Personalitic theory of probability

  • Probability is calculated on the basis of personal experience or opinion
 
 
 
Types of Probability distributions

Binomial Distribution

  • Derived by James Bernoulli

  • The random experiment is performed repeatedly a fixed number of times (n is finite and fixed)

  • It is a discrete probability distribution

  • Binomial distribution has two parameters mean and standard deviation

  • If two independent random variables follow binomial distribution, their sum also follows binomial distribution

Poisson Distribution

  • Simon D. Poisson (1937)

  • The number of trials is indefinitely large

  • It is a discrete distribution

  • It is applied in situations where the probability of success of an event is very small and chance of failure is very high

Normal Distribution

  • Also known as Gaussian distribution

  • Continuous frequency distribution

  • It is a bell shaped curve
 
  • Mean = median = mode 
 
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