PREVIOUS YEAR SOLVED PAPERS - December 2018
64. Which one of the following is not the correct property of normal distribution?
- Option : C
- Explanation : Properties of a Normal Distribution
A normal Distribution is a continuous probability distribution for a random variable x. The graph of a normal distribution is called the normal curve, which has all of the following properties:
1. The mean, median and mode are equal.
2. The normal curve is bell-shaped and is symmetric about the mean.
3. The total area under the curve is equal to one.
4. The normal curve approaches, but never touches the x-axis.
5. Between μ – σ and μ + σ the graph is concave down and elsewhere the graph is concave up. The points at which the graph changes concavity are called inflection points.
Remarks
∎ A normal distribution can have any mean and any positive standard deviation
∎ The two parameters, μ and s completely determine the shape of the normal curve.
∎ The equation of the normal curve is
- Option : B
- Explanation : Characteristics of production function
Important characteristics of production function are given below.
1. Flow concept: Production function exhibits flow concept. It represents flow of inputs and the resulting output flow for a specified time period.
2. Physical concept: It exhibit technical relationship between physical input and physical output only and not in any other firm.
3. Complementary: Input show complementary characteristics. For example if man and machine combination produces 5 units of a commodity per day. By employing 2 man and 2 machines, 10 units of that commodity can be produced.
4. Substitutability: Some factors may be substitutable. For example, X and Y are substitutable factor, X may be increased instead of Y. X is fixed while Y is variable, one can use less capital and more labour and vice versa for obtaining same output. For example, if agricultural university wants more agricultural produce, it can use more land or can adopt new improved varieties of seeds, fertilizers and other inputs to get more produce from the same land.
5. Specificity and versatility: If a factor of production can be used for only one purpose, it is considered as specific on the other hand if it can be used for more than one purpose it is referred to as versatile. In production some factors are specific and some are versatile. A thrasher and tractor are versatile farm equipment whereas chemical spraying pump is specific.
Short run and long run production function: Short run production function represents a time period in which the inputs of some factors of production cannot be changed. They are referred to as fixed factors e.g. plant, machinery and equipment. Long run production function represents time period which allows change in the input of all factors of production used by the organization.
