CAIIB · Advanced Bank Management · Module A — Statistics
CAIIB ABM Unit 2 — Sampling Techniques: 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 2 — Sampling Techniques (Module A — Statistics). The CAIIB Mock Centre holds 158 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 A158 MCQs in the Mock Centre5 free belowIn the free demoPaper on 6 December
Key facts examiners test from this unit
Populations, samples and the two ways of sampling — we study a properly chosen part (sample) to learn about the whole (population); random samples let us measure reliability, judgement samples do not.
The four methods of random sampling — simple random, systematic, stratified and cluster sampling all give every element a chance; only simple random gives every sample an equal chance.
Sampling distributions and the standard error — the statistic of a sample varies from sample to sample; its distribution is the sampling distribution, and its standard deviation is the standard error.
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 158 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
When a measure such as the mean or standard deviation describes a sample, what is it called?
Why (d): The textbook: when these terms describe a sample they are called statistics; when they describe a population they are called parameters. A statistic is a characteristic of a sample. (a) is wrong: A stratum is a group within a population. (b) is wrong: A parameter describes a population. (c) is wrong: A census is the examination of every element, not a measure.
Question 2 of 5
What property makes a table of random digits suitable for drawing a random sample?
Why (d): A random table gives every digit the same chance at each position, independently of the digits before it, so any sequence is as likely as any other of the same length. A fixed quota per hundred, a ban on repeats or a human choice all impose a pattern. (a) is wrong: A fixed quota per hundred is a pattern; in a random table the counts vary. (b) is wrong: Banning repeats is a pattern; in a random table a digit is followed by itself about one time in ten. (c) is wrong: Digits chosen by a person reflect human judgement, not chance.
Question 3 of 5
What is the sampling distribution of the mean?
Why (b): The glossary defines the sampling distribution of the mean as a probability distribution of the means of all the possible samples of a given size, n, from a population. (a) is wrong: The values in one sample form that sample's own distribution, not a sampling distribution. (c) is wrong: That is the population distribution. (d) is wrong: The distribution is of sample means, not of sample sizes.
Question 4 of 5
For which situations is the formula σx̄ = σ ÷ √n designed?
Why (a): Section 2.7 says the equation is designed for situations in which the population is infinite, or in which we sample from a finite population with replacement. These are textbook Question 16, item 5's two correct cases. (b) is wrong: Without replacement from a finite population the finite population multiplier is needed. (c) is wrong: The formula is not limited to small samples or normal populations. (d) is wrong: A census has no sampling error, so no standard error is needed.
Question 5 of 5
When must the standard error of the mean include the finite population multiplier?
Why (b): σ ÷ √n is designed for infinite populations or sampling with replacement; for a finite population sampled without replacement the multiplier is applied, unless the sampling fraction is below 0.05. (a) is wrong: An infinite population needs only σ ÷ √n. (c) is wrong: Sampling with replacement uses σ ÷ √n. (d) is wrong: The multiplier depends on N, n and the method of drawing, not on normality.
0 of 5 answered.
Traps in this unit
μ is the population mean; the sample mean is x̄.
"Population" includes things, not only people.
A Friday-only system biases eating-out data.
Practise all 158 questions on Unit 2. 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.