Theoretical DistributionsMCQMTP Dec 2023 Series IIQuestion 3601 of 230
All Questions

The wages of workers of a factory follows

Options

ABinomial distribution
BPoisson distribution
CNormal distribution
DChi-square distribution
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Correct Answer

Option cNormal distribution

All Options:

  • ABinomial distribution
  • BPoisson distribution
  • CNormal distribution
  • DChi-square distribution

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Detailed Solution & Explanation

**Distribution of Socio-Economic Variables (Wages)** To determine the probability model that fits the wages of workers in a factory, let us evaluate the distributions: 1. **Binomial and Poisson Distributions:** These are **discrete** distributions. They model countable events (like number of defectives or accidents). Wages are measured continuously on a monetary scale, making discrete models inappropriate. 2. **Chi-square Distribution:** This is a continuous distribution that is highly skewed to the right, mostly used in statistical hypothesis testing (like goodness-of-fit tests). 3. **Normal Distribution:** This is a continuous, symmetric, bell-shaped distribution. Most natural and socio-economic variables, such as wages, heights, weights, and test marks, tend to cluster symmetrically around a central average wage, with very few individuals earning extremely low or extremely high wages. Therefore, the wages of workers are best modeled by a Normal distribution, which corresponds to Option C. Hence, **Option C** is the correct answer.

About This Chapter: Theoretical Distributions

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Binomial, Poisson, Normal Distribution

This chapter covers Binomial, Poisson, Normal Distribution and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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