CAIIB · Advanced Bank Management · Module A — Statistics
CAIIB ABM Unit 1 — Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper I of the December 2026 cycle (Sunday 6 December 2026)
This is the free practice page for CAIIB ABM Unit 1 — Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation (Module A — Statistics). The CAIIB Mock Centre holds 131 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
ABM · Module A131 MCQs in the Mock Centre5 free belowIn the free demoPaper on 6 December
Key facts examiners test from this unit
What statistics is, why it matters and where it stops — statistics is numerical data about groups, and the subject that collects, classifies, analyses and interprets it.
The basic vocabulary: population, sample, variables, parameters — a sample stands for a population; a statistic from the sample estimates a parameter of the population.
Collecting data: primary and secondary — primary data are collected first-hand for the study; secondary data already exist, collected by someone else for another purpose.
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 131 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
A bank's HR cell has collected the monthly salaries of its 2,400 officers, sorted them into ₹10,000 salary bands and counted the officers in each band. Which phase of the statistical study comes next?
Why (b): The phases run collection → classification and tabulation → analysis → interpretation. Sorting salaries into bands and counting officers in each band is classification and tabulation, which is already done, so analysis (averages, dispersion and the like) comes next. (a) is wrong: Collection is already done: the salaries have been gathered. (c) is wrong: Interpretation follows analysis; there are no results yet to interpret. (d) is wrong: Sorting into bands and counting per band is classification and tabulation, which is already done.
Question 2 of 5
A characteristic that varies from one individual to another and can be expressed in numbers is called:
Why (a): The textbook calls a numerical characteristic that varies between individuals a variate, such as wages, prices, heights or marks. (b) is wrong: An attribute cannot be expressed in numbers. (c) is wrong: A parameter is a value describing a whole population. (d) is wrong: A class interval is a group in a frequency distribution.
Question 3 of 5
Data collected directly, for the first time, by the investigator from the respondents are:
Why (a): Primary data are collected directly or for the first time by the investigator or researcher from the respondents. (b) is wrong: Secondary data were collected earlier by someone else. (c) is wrong: Time series describes data arranged by time, not how they were collected. (d) is wrong: Parameters are values describing a population.
Question 4 of 5
What does classification do to raw data?
Why (d): Classification groups observations by a common characteristic (for example, accounts by balance size), condensing a mass of data so that patterns can be seen. Setting the classified data out in rows and columns is tabulation, the next step. (a) is wrong: Setting classified data out in rows and columns is tabulation, the next step. (b) is wrong: Conclusions about the population come at the interpretation stage. (c) is wrong: A single representative value comes from an average, not from classification.
Question 5 of 5
Frequency density of a class interval is calculated as:
Why (b): The textbook defines frequency density of a class interval as class frequency divided by the width of the class. (a) is wrong: That is the relative frequency. (c) is wrong: It inverts the ratio. (d) is wrong: That is the relative cumulative frequency.
0 of 5 answered.
Traps in this unit
Weather forecasting is regression and time series, not correlation alone.
"Cannot study qualitative data" is a limitation, not a function.
Bias comes from inexperienced or dishonest data handling.
Practise all 131 questions on Unit 1. This unit is part of the free CAIIB demo: register with your e-mail and the whole unit opens, with full why-right / why-wrong explanations, a 60-question test in each paper and Smart Revision of your mistakes.
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.