isc solved paper-2020*

ISC Solved Paper-2020*Class-XI

ECONOMICS(Maximum Marks 80)

(Time allowed: Three hours)(Candidates are allowed additional 15 minutes for only reading the paper

They must NOT start writing during this time)

Answer Question 1 (compulsory from Part I and five questions from Part IIThe intended marks for questions or parts of questions are given in brackets [ ]

PART I (20 Marks)

Attempt all questions

Question 1 [10×2] Answer briefly each of the questions (i) to (x):

(i) Mention any two objectives of the G-20 group.(ii) What is a Production Possibility Curve ?(iii) State any two effects of global warming.(iv) What is meant by Agricultural Diversification?(v) Give the meaning of Macro Economics.(vi) What is meant by structural unemployment?(vii) Explain any two uses of Index Numbers.(viii) What is a Histogram?(ix) Mention any two achievements of the Poverty Alleviation Programmes in India.(x) Discuss any one source of collecting secondary data.

PART II (20 Marks)

Attempt any five questionsQuestion 2

(a) Explain the three components of Human Development Index. [3]

(b) Discuss any two types of unemployment found in rural India. [3]

(c) Explain the role of human capital in the economic development of India. [6]

Question 3

(a) Discuss any two features of Samuelson’s definition of economics. [3]

(b) With the help of the Production Possibility Curve show: [3]

(i) What happens to the curve when there is growth due to technological change.

(ii) One attainable combination of production.

(iii) One unattainable combination of production.

(c) Explain the mechanism used to solve basic economic problems faced by a Socialist economy. [6]

Question 4

(a) Compare the growth experience of India with that of China with reference to: [3]

(i) GDP

(ii) Foreign Direct Investment

(b) Discuss any two objectives of the Economic Liberalization. [3]

*The answers of this Question Paper have been merged chapterwise/topicwise within the book. Kindly refer respective chapters for these answers.

2 | Oswaal IsC solved Paper-2020, ECONOMICS, Class-XI

(c) Discuss any four features of the Privatization of the Indian Economy in 1991. [6]

Question 5(a) Discuss any two adverse effects of commercialization of Indian agriculture during the British rule. [3](b) What is meant by economic growth. Mention two differences between economic growth and economic development. [3](c) Discuss any three differences between capitalist and socialist economies. [6]

Question 6(a) Explain any two features of utility. [3](b) Differentiate between demand pull and cost push inflation. [3](c) Discuss any four positive effects of liberalization on the Indian economy in 1991. [6]

Question 7(a) State any three major thrusts of each of the five-year plans given below: [3]

(i) Sixth five-year plan(ii) Eighth five-year plan

(b) Explain any two shortcomings of agricultural credit cooperatives. [3](c) “Per capita income has been traditionally used as an important index of development, but it has various

limitations.” Discuss any four limitations of this index. [6]

Question 8 (a) Determine median from the following data: [3]

Age 0-10 10-20 20-30 30-40 40-50 50-60

No. of people 8 4 10 12 13 3

(b) Calculate the Index number by using Laspeyres’ method: [3]

1988 1989

Item Price Quantity Price Quantity

A 2 40 3 20

B 1.5 30 2.5 40

C 1 50 1.5 30

D 2.5 20 2 80

(c) Using the data given below, calculate mode using the grouping method: [6]

ClassInterval

10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50

Frequency 4 8 18 30 20 10 5 2

Question 9 (a) Mention three differences between primary data and secondary data. [3] (b) Find the Standard Deviation from the following data: [3] 49, 63, 46, 59, 65, 52, 60, 54 (c) With the data given below, calculate the coefficient of correlation between the variables X and Y using the

Spearman’s rank correlation method: [6]

X 25 45 35 40 15 19 35 42

Y 55 60 30 35 40 42 36 48

Oswaal IsC solved Paper-2020, ECONOMICS, Class-XI | 3

AnswersPART I

Question 1 [10×2]

(i) The two Objectives of the G-20 group are :

(a) To discuss with members, policy related to the promotion of international financial stability.

(b) To promote global economic growth, international trade and financial markets.

(ii) Production Possibility Curve : A production possibility curve is the curve which shows various combinations of two goods that can be produced with available techniques and with given amount of resources. It depicts society’s menu of choices between two goods. Production possibility curve has two characteristics:

(a) The production possibility curve slopes downwards to right.

(b) It is concave to origin.

(iii) Effects of Global warming:

(a) Climate Change : Irregular weather patterns have already started showing results. Increased precipitation in the form of rain have already been noticed in polar and sub-polar regions. More global warming will lead to more evaporation which will cause more rains. Animals and plants cannot easily adapt to increased rainfall. Plants may die and animals may migrate to other areas, which can cause entire ecosystem out of balance.

(b) Droughts : While it may be flooding in Savannah, severe drought is happening elsewhere in the world. As temperature warms the area, the presence of drought has increased in the western U.S. Add on top of that heat waves and no precipitation, whole forests have begun to disappear including tens of millions of trees in Colorado’s Rockies. Large scale evaporation will be the major cause of droughts in many places particularly Africa. Although, it is reeling under the huge pressure of water crisis, increased global warming would further make the situation worse and will cause malnutrition.

(c) Diseases : As the temperature becomes more warm, it can affect the health of humans and the diseases they are exposed to. With the increase in the rainfall, water borne diseases are likely to spread like malaria. The earth will become more warm and as a result heat waves are likely to increase that can cause a major blow to the people.

(d) Rise of Sea Levels : The melting of polar ice-caps and less water evaporating into the atmosphere are causing increased sea levels. Quaint coastal towns and cities near the U.S. east coast and Gulf of Mexico are just a few areas where devastating flood damage is starting to make its mark in history. (Any two)

(iv) Agricultural Diversification refers to re-allocation of productive resources such as land, labour, capital, farm equipment etc. in the agriculture sector into new activities. These new activities can be new crops or livestock products.

(v) Macroeconomics is the branch of economics that deals with the broad economic aggregates or bigger issues, such as full employment, unemployment, full capacity and under capacity production, inflation or deflation, etc. It studies the economy as a whole. Macroeconomics is concerned with the theory of national income, employment, aggregate consumption, savings and investment, general price level, economic growth, etc.

(vi) Structural unemployment : It refers to a situation where a large number of people do not get work because of limited job opportunities available. In India, the production capacity is not only limited, but it is increasing at a slower rate because of low rate of capital formation. As against this, the labour force is increasing at a faster rate because of rapid increase in population. Thus, labour force increases at a faster rate than new jobs created. As a consequence, the number of unemployed persons is increasing every year.

(vii) The main uses of index number are the following:

(i) Barometer of Economic Activities : Index numbers are an indispensable tool for understanding the variations in the level of general economic activities in an economy. By indicating the changes in economic activities, they act as the barometer of the economy. Wholesale and retail price indices, the indices of industrial production, agricultural production, export and import, etc. can give a fairly good idea about the nature of economic changes in the country.


(ii) Measurement of Purchasing Power of Money : Index numbers help in measuring the changes in the value of money. when the over time, price level goes up, the value or purchasing power of money falls. Cost of living index numbers help in finding out whether the real wages are rising or falling.

(viii) A histogram is the graphical representation of a continuous frequency distribution. When the grouped frequency data are presented graphically in the form of rectangles, the two dimensional diagram so obtained is histogram.

(ix) Two achievements of the Poverty Alleviation Programmes in India are:

(a) Decrease in poverty : The reduction in proportion of BPL population by 33% from 55% in 1973-74 to about 22% in 2011-12 and decrease in incidence of Poverty is largely due to Poverty Alleviation Programmes

(ii) Increase in income : According to some studies and reports, there has been increase in the wages and income of the poor in recent years due to Poverty Alleviation Programmes.

(x) The sources of collecting secondary data can be categorised as published sources and unpublished sources.

Published sources : Publications of various organisations and agencies are the most important source of secondary data. These different sources of published data include Govt. publications like, Census of India, Economic Survey reports, publications of NSSO, annual report on currency and finance etc., semi-govt. publications like birth and death records of municipalities, etc., reports of committees and commissions, like reports of Finance Commission, Pay Commission, etc., publication of research papers by Research Institutes like National Council of Applied Economic Research, publication of Trade associations like FICCI, Indian Chamber of Commerce and Industry, journal and newspapers and annual reports of Business Companies.

PART II

Question 2

(a) United Nations Development Programme (UNDP) has used the following criterion of Human Development Index. HDI is calculated on the basis of:

(i) Gross Domestic Product Per Capita Income : When the total national income of the country is divided by its population, we get the per capita income, which is used to measure the decent standard of living.

(ii) Life Expectancy at Birth : It measures longevity and healthy life .It is the average age of a person in a country. It helps us to know the health facilities of the country.

(iii) Literacy Rate : Education is also one of the most important criteria for the development of a country. The ability to acquire knowledge is measured by mean years of schooling and expected years of schooling.

(iv) Gross Enrolment Ratio : It measures the education gained at three levels—at the primary, secondary and higher education level.

(b) Types of unemployment found in rural areas of India are as under :

(i) Disguised unemployment: It refers to a situation when the number of workers engaged in a job is much more than actually required to do the given work. This type of unemployment prevails mostly in rural areas of India. In agriculture, implement takes the form of ‘Worksharing’, i.e., a given work is shared among the larger number of workers than required. In India, a large labour force is available in the agricultural sector due to the high growth rate of population.

(ii) Seasonal unemployment: It refers to a situation when people get work during some days or months of the year but not regularly throughout the year and therefore, they are unemployed during some part of the years. Seasonal unemployment in India is predominantly associated with agriculture. Agriculture in India offers employment not throughout the year but during some specified time periods because of seasonal character of agricultural operations. In the peak period of sowing and harvesting, there is such an amount of work that there is scarcity of labour in the villages. As against this, period between the post-harvest and before the next sowing is the lean period and a large number of persons remain without work during this lean period.

(iii) Educated unemployment: It refers to unemployment among the educated persons. The problem of educated unemployment is basically the problem of urban areas. Educated unemployment occurs due to rapid expansion of educational facilities. Mass education in India is responsible for the emergence of this problem. (Any two)


(c) The role of human capital in the economic development of India is explained below:

(i) Helps in absorbing new techniques : We need knowledgeable and skilled workers to do innovations, create new techniques, to absorb the modern, complex and sophisticated techniques. Educated and skilled workers can use and operate these techniques easily, efficiently to enhance productivity and accelerate the pace of economic growth.

(ii) Increase in labour efficiency: Human capital formation leads to skill formation by on-the-Job trainings, which inturn increases the efficiency, productivity of workers. Moreover availability of adequate health facilities increases stamina, physical strength of the worker to work longer and harder.

(iii) Adds to productive capacity : Human capital formation helps in adding to the productive capacity of the economy as skilled labours are helpful in updating and modernizing the traditional and backward techniques through their knowledge, skill and experience. The knowledgeable, educated, skilled workers tend to adapt and modify the imported techniques to suit local requirements and contributes in developing new techniques of production.

(iv) Instrument of Economic changes: Human capital formation is an important tool for bringing about change in society and economy. Education helps people in changing their traditional negative attitude into growth oriented modern attitude and values. Educated and skilled people are the source of new ideas, inventions, innovations which proves to be the life line of economic growth.

(v) Improving quality of Life: Human capital formation helps in improving the quality of life by increasing life expectancy, literacy ratio, level of per capita income and by providing adequate water supply, housing facilities etc. to the people.

Question 3

(a) Two features of Samuelson's definition of economics are as follows:

(i) Dynamic approach: Prof. Samuelson has adopted a dynamic approach to the study of economics by taking economic growth as an integral part of economics. This has not only imparted dynamism to economic problems but also has widened the subject matter of economics too.

(ii) Comprehensive : Samuelson's definition of economics is very comprehensive. It is growth-oriented as well as future oriented. It has included Marshall's welfare aspect as well as Robin's scarcity and choice aspect.

(b) (i) When there is growth due to technological changes, PPC shifts rightwards as shown in the diagram, PPC curve shifts from PP1 to PP2 due to technological development.

(ii) One attainable combination of production : Following diagram shows attainable combinations of production of Goods 1 and Goods 2, as A, B, C, D points on PPC. E inside PPC is also attainable combination but it is inefficient production.


(iii) One unattainable combination of production : Points outside the PPC show combinations that can not be attained because economy does not have enough resources to produce those quantities. Point ‘K’ shown in the diagram indicates unattainable combination of production.

(c) In a socialist economy, the responsibility of solving the basic economic problems lies with the Govt. The Govt. sets up a Central Planning Authority known as Planning Commission or Planning Ministry. Economic Planning plays the same role in socialistic economy, as is played by Price Mechanism in a capitalistic economy.1. what to Produce and How much to Produce : Planning authority after taking into account the requirements

of the economy for the various goods and services, makes an estimation of available economic and human resources in economy and they directs the resources the production of various commodities according to national priorities.

2. How to Produce : The Central Planning Authority decides not only what and how much to produce, but also decides about the types of techniques/methods of production to be used. While choosing the technique of production, it has to ensure that economic resources of the country are fully utilized. The appropriate technique of production is decided by considering social objectives and social goals.

3. For whom to Produce : Decision about the distribution of income in a socialist economy is also taken by the Planning Authority. As all economic activities and productive resources are controlled and regulated by the Govt., factor income to be paid to factor of production is decided by the Govt., for example, how much wage is to be paid to different categories of labourers is determined by the Govt. taking into account the quantity and quality of work done by the workers. The basic principle of distribution of income in this economy is “from each according to his capacity and to each according to his work”. In socialist economy, income inequalities are drastically reduced to achieve the aim of equitable distribution of income and equity with justice.

Question 4

(a) Comparison of growth experience of India with that of China with reference to :(i) GDP : There is difference between the two countries with regard to the growth rates. China, has experienced

high growth rates of GDP as compared to more moderate growth rate of India. The Chinese economy experienced an average annual 9.7% growth rate of GDP during the period 2000-2017. But Indian economy was able to achieve 7.5% annual growth rate of GDP during 2000-2017. However China's growth rate of GDP in 2018 has been lower than that of India. Economic Development of China is ‘Indushialisation led’ growth while it is largely ‘Service Led’ growth in India.

(ii) Foreign Direct Investment : China is one of the leading FDI recipients’ in the world, receiving about 174 billion in 2017. India on the other hand, received only 44 billion FDI in 2017 which constitutes 8% of world FDI (2017) share for china and only 2.1% for India.

(b) Two objectives of Economic Liberalization were:(i) To move from a regulated system to a new system where regulations were to be reduced and ultimately

minimized, giving freedom to entrepreneurs.(ii) To increase international competitiveness of industrial production technology and foreign investment.

(iii) To increase the market share of Indian goods in International market by increasing their competitive strength. (Any two)


(c) Features of Privatisation Policy :

(i) Policy of Deresevation: The Industrial Policy of 1991 reduced the number of industries reserved for public sector from 17 to eight. Subsequently, the number of industries reserved exclusively for public sector was reduced to three, namely Atomic Energy, Railways and Specified Minerals.

(ii) Policy towards Sick Public Sector Enterprises : The sick enterprises, under the pursuance of New Industrial Policy were brought with in the jurisdiction of Board for Industrial and Financial Reconstruction for their revival or rehabilitation. As per the report of BIFR the government would assist those sick industries which could be made viable units by restructuring, or moderation and those units which can not be revived, to be closed down.

(iii) Policy for Navratnas and Miniratnas : The policy for Navratnas was one of the six major measures to reform the public sector enterprises. The ‘Navratnas’ was originated as part of the program of the government in 1996 to identify high performing and profit making public sector enterprises. These Enterprises were to be provided financial and managerial autonomy to become global giants. This was done in order to improve efficiency, infuse professionalism and to enable Central Public Sector Enterprises (CPSEs) to compete more effectively in the liberalized global environment.

(iv) Memorandum of understanding : The govt. entered into MOU with the public sector enterprises with the objective of improving their performance by granting them autonomy and to bring a balance between autonomy and accountability. This is sought to be done by specifying in clear cut terms the measurable goals through setting targets both in financed and non-financed areas and giving each enterprise greater autonomy to achieve these targets in competitive environment. The number of PSUs entering into MOU with the government has increased over years .

(v) Voluntary Retirement Scheme: For the employees of PSUs, Government of India has initiated a voluntary Retirement Scheme in the public sector enterprises to reduce the number of excess workers because many of the public sector undertakings have been facing the problem of over staffing. Under this scheme, workers seeking voluntary retirement are given financial compensation. As a result of the scheme, the government has succeeded in reducing the excess number of employees working with the public sector enterprises. About 6.19 lakh employees had opted for voluntary Retirement Scheme from 1988 till March 2018.

(iv) Disinvestment Policy : It is Selling of equities of PSUs to private sector financial institutions, investors and public at large, with the objective of reducing public debt burden, to provide funds for giving assistance to public sector enterprises for their modernization, etc. (Any four)

Question 5

(a) Two adverse effects of commercialization of agriculture during British rule :

(i) The area under commercial crops increased at the cost of food crops contributing to frequent famines.

(ii) In many areas, commercialization led to the development of rich peasantary who preferred to use their savings to buy land so as to become landlord or money lender.

(b) Economic growth is the process whereby the real per capita income of a country increases over a long period of time. The differences between economic growth and economic development are explained in the points given below :

(i) Economic growth is the positive change in the real output of the country in a particular span of time economy. Economic development involves a rise in the level of production in an economy along with the advancement of technology, improvement in living standards and so on.

(ii) Economic growth is one of the features of economic development. Economic development includes economic growth as well.

(iii) Economic growth is an automatic process. Unlike economic development, which is the outcome of planned and result-oriented activities. (Any two)

(c) Differences between capitalist and socialist economy are :(i) Ownership of Productive Resources : In capitalist economy, all the productive resources like land, factories,

mines, machinery and other resources are owned by Private individuals. Private property is the very essence of a capitalist economy. Individual/ private owners of these productive resources have the right to acquire, used and sell property and productive forces. In socialistic economy there is social or collective ownership of productive resources. All the productive resources such as land, mines, mills, factories, business are owned and controlled by the State.


(ii) Competition : Competition is one of the vital pillars of capitalism. Competition means rivalry between the participants in the product and factor market. Competition tends to promote economic efficiency and ensures that the goods and services are produced at the lowest possible cost of production by the competing firms otherwise their survival will be in danger where as socialist economic system eliminates competition of all types. Since the Govt. has monopoly of production of all types of goods in a socialist economy, there is no scope of competition or rivalry among production units. In this economic system, spirit of cooperation and mutual goodwill, social interest prevail and competition is eliminated.

(iii) Class Struggle : A capitalist economy has led to a class struggle among various groups, particularly between the capitalist and workers. Class struggle in the direct outcome of inequalities in the capitalist economic system. Under this economic system, society is divided into two groups-the ‘haves’ and the 'have-nots', the capitalists and the workers, with constant hostility, struggle and animosity between them in the form of lockouts, strikes, etc. Thus, there is scope of economic exploitation in this system. On the other hand, a socialist society aims at establishing as classless society. As the Govt. has its monopoly/ownership over all the productive resources the capitalist class simply does not exist. People work for the State and get their labour income from the Govt. There is no scope of unearned income class distinctions or class struggles do not exist in socialist economy with a consequence that there is no scope of economic exploitation.

Question 6

(a) Features of utility are explained below:(i) utility is subjective: It can't be identified, it is an individual's own estimate of satisfaction from consumption

of a good or service.(ii) utility is relative: It is relative to a person's needs. It varies from person to person, place to place, time to

time.(iii) No moral or legal or ethical connotations : It has no moral or legal implications. It is neutral between good

and bad, useful or harmful, legal or illegal. (Any two) (b) Inflation originating from the demand forces is called demand-pull inflation. Demand-pull inflation occurs when

the demand for goods and services exceeds the supply available at the existing price i.e., when there is excess demand for goods and services. If aggregate demand increases rapidly and exceeds the economy’s production, price will begin to rise. Demand will beat the limited supply of commodities and will bid up prices. Inflation can be caused by forces operating from the supply side as well.

Cost-push inflation refers to inflationary rise in prices which arise due to increase in costs. Cost-push inflation may be caused by increase in wage, cost and/or increase in the profit margin. For instance, if money wages increase, cost per unit will increase. As a consequence, producers raise their prices to cover the higher cost. Sometimes, producers may raise the prices of their products so as to earn higher profits.

(c) (i) Abolition of Licensing : NIP 1991 abolished licensing for most industries except 6 industries of strategic significance. They include alcohol, cigarettes, industrial explosives, defence products, drugs and pharmaceuticals, hazardous chemicals and certain others reserved for the public sector. This would encourage setting up of new industries and shift focus to productive activities. Entrepreneurs are now free to enter any industry, trade or business. The approval for any new venture and expansion of business is almost automatic giving boost to industrialization, with a greater role to market forces to infuse competition. The removal of licensing system has simplified doing business.

(ii) Liberalization of Foreign Investment : While earlier prior approval was required by foreign companies, now automatic approvals were given for Foreign Direct Investment (FDI) to flow into the country. A list of high-priority and investment-intensive industries were de-licensed and could invite up to 100% FDI including sectors such as hotel and tourism, infrastructure, software development, etc. Use of foreign brand name or trade mark was permitted. Foreign exchange market reforms have been successful in attracting FDI and building strong foreign exchange reserves for the economy, steering Indian Economy into the path of growth and development.

(iii) Relaxation of Location Restrictions : There is no requirement anymore for obtaining approval from the Central Government for setting up industries anywhere in the country except those specified under compulsory licensing or in cities with population exceeding million. Polluting industries were required to be located 25 kms away from the city peripheries if the city population was greater than 1 million. This has led to development of entrepreneurship and small scale industries and optimum utilisation of locally available resources for productive purposes, broadening the Industrial base for economic growth .

(iv) Liberalization of Technology Imports and Foreign Trade reforms : Foreign Trade policy underwent a


substantial change in the wake of liberalization. Tariff restrictions have been considerably relaxed. Import quotas have been abolished. In projects, where imported capital goods are required, automatic license would be given for foreign technology imports up to 2 million US dollars. No permissions would be required for hiring foreign technicians and foreign testing of indigenously developed technologies. This has resulted in import of modern technology, increasing competitiveness and productivity of Indian Industries to with stand international standards for exporting goods in international markets

Question 7

(a) (i) Sixth Five Year Plan : The major thrusts of the Sixth five-year plan were stepping up the rate of Economic growth, emphasis on modernization for achieving economic and technological self-reliance, reduction in poverty and reducing unemployment. The Sixth five-year plan was reasonably successful. The growth objective of the plan was realised good monsoon resulted in bumper crops and substantial increase in agricultural output, giving encouraging results to Industrial output.

(ii) Eighth Five Year Plan : The eighth five year plan started in April, 1992, covering the period of 1992-97. The main objectives of this plan were to generation of adequate employment, spread of education, expansion of health care facilities, growth and diversification of agriculture so as to achieve self sufficiency, development of economic infrastructure and population control. An important kingpin of the eighth plan was the implementation of new economic reforms policy characterised by Liberalisation, Privatisation and globalisation. All these elements of NEP helped to achieve high growth rate, fall in trade deficit due to high growth rate of exports, unemployment and poverty was reduced but the growth of infrastructure and social sector was unsatisfactory.

(b) The shortcomings of agricultural credit cooperatives are as follows:(i) Inadequate coverage : The number of cooperative credit institutions is not adequate to cater to the credit

requirements of rural people and their coverage is still limited in relation to the rural population. They have covered only 65% of rural population and have been able to meet a small proportion of the total borrowings of the farmers. Their progress has not been adequate considering the growing demand of finances by the farmers.

(ii) Inadequate resources : The financial resources of the cooperatives are inadequate in relation to the credit requirements of the rural sector. Majority of their funds come from external sources such as NABARD and government rather than from their own funds. Most of the credit societies are financially weak and are not able to meet the credit needs of the farmers.

(c) Limitations of Per Capita Income Index are as follows:(i) A rise in per capita income is due to rise in prices and not due to increase in physical output, so it is not a

reliable index of economic development. (ii) It excludes all non-marketable goods and services, even though they may be important for human happiness

and better quality of life.(iii) Rise in per capita income may be due to use of modern capital intensive technology in production which

may be labour displacing in nature thus adversely affecting the poor masses.(iv) If rate of population growth is higher than the rate of growth of national income, this will lead to fall in per

capita availability of goods and services and economic welfare.(v) Contribution of commodity to economic welfare may be higher than its money value e.g., money value of

salt, needle, thread, etc. included in national income is lower than their contribution to economic welfare. (Any four)

Question 8.

(a) Median

Age (X) No. of People(n) Cf

0-10 8 8

10-20 4 12

20-30 10 22

30-40 12 34

40-50 13 47

50-50 3 50


Median =

Size ofn

th term2

=

size of th term502

= size of 25th term

25th term lies in the 34 cumulative frequency. Therefore, 25th item is contained in the class 30-40.

Where, L1 = 30

Cf0 = 22

f = 12

c = 10

M L

n Cc= +

−×1

02f

f

= 25 22 330 10 30 10

12 12−

+ × = + ×

= 30 + 2.5 = 32.5

Hence required median (M) = 32.5

(b) Index number by using Laspeyres' Method

1988 1989

Item p0 q0 p1 q1 p1 q0 p0 q0

A 2 40 3 20 120 80

B 1.5 30 2.5 40 75 45

C 1 50 1.5 30 75 50

D 2.5 20 2 80 40 50

Total 310 225

Laspeyres' Method = Pp qp q011 0

0 0

100= ×∑∑

310 100 137.77225

= × =

(c) Mode using the Grouping Method

Frequency Table

C.I. I II III IV V VI

10-15 4 12

2630

15-20 8

20-25 18 f0 48

56 68

25-30 30 f150

30-35 2030 60

35

35-40 1015

17

40-45 57

45-50 2

} }}}

}}

} }} }

}}}


Analysis Table

Column no. 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50

I

II

III

IV

V

VI

Total – 1 3 6 3 1 - -

It is clear from the analysis table that modal class is 25-30 and frequency of this class is 30

Now Mode Z L C, ( ) = + −− −

×

= + −× − −

×

11 0

1 0 22

2530 18

2 30 18 205

f ff f f

= 25 + 2.72 = 27.72Question 9 (a) (i) Originality : Primary data is the information collected for the first time by a researcher himself for a

particular purpose. It is a unique, first-hand and qualitative information not published before. It is collected systematically from its place or source of origin by the researcher himself or his appointed agents. It is obtained initially as a result of research efforts taken by a researcher with some objectives in mind. Secondary data, on the other hand, is the information already collected by others or somebody else and later used by a researcher to answer their questions in hand. Hence, it is also called second-hand data. It is a ready-made information obtained mostly from different published sources like companies’ reports, statistics published by government, etc. Here the required information is extracted from already known works of others.

(ii) Suitability: Primary data expressly collected by the investigator for a predetermined objective. Therefore these data need not be adjusted or modified for the concerned study. But the purpose of the user of secondary data may be different from the purpose for which primary data is collected. Therefore primary data is to be adjusted to suit to objectives of their users.

(iii) Cost of Collection: Primary data involve large expenses in terms of money, energy, efforts and time as they are collected from the source of their origin. On the other hand, secondary data are economic and cheaper as they are easily and simply obtained from journals, publication of government and semi-government agencies and other sources.

(b) Standard Deviation

49, 63, 46, 59, 65, 52, 60, 54

X d X X= − d2

49 -7 49

63 +7 49

46 -10 100

59 +3 9

65 +9 81

52 -4 16

60 +4 16

54 -2 4

X =∑ 448 d2 324=∑


X

XN

= = =∑ 4488

56

S D

dN

. . ( ) .σ = = =∑ 2 3248

40 5

= 6.364

Standard Deviation(σ) = 6.364

(c) Co-efficient of Correlation by Spearman’s Rank Correlation Method

X R1 Y R2 D = R1 – R2 D2

25 6 55 2 +4 16

45 1 60 1 0 0

35 4.5 30 8 –3.5 12.25

40 2 35 7 –5 25

15 8 40 5 +3 9

19 7 42 4 +3 9

35 4.5 36 6 –1.5 2.25

42 3 48 3 0 0

D2 73 5=∑ .

Here N = 8, D2 73 5=∑ .

ρ = −

−( )

−

∑1

6 D +1

12m m

N N

2 3

3

= −

+ −( )

−1

6 73 5 112

2 2

8 8

3

3

.

= −

+[ ]−

16 73 5 0 5

512 8

. .

= −1 6 74

504( )

= − = −1444504

1 0 8809.

=0.1191

There is low degree of positive correlation between X and Y.

isc solved paper-2020*

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