CAIIB · Advanced Bank Management · Module A — Statistics
CAIIB ABM Unit 3 — Measures of Central Tendency & Dispersion, Skewness, Kurtosis: 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 3 — Measures of Central Tendency & Dispersion, Skewness, Kurtosis (Module A — Statistics). The CAIIB Mock Centre holds 151 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 A151 MCQs in the Mock Centre5 free belowPaper on 6 December
Key facts examiners test from this unit
Central tendency and the arithmetic mean — an average condenses data into one value for comparison; the arithmetic mean is the sum divided by the number, weighted by frequencies for grouped data.
Geometric and harmonic means — the geometric mean averages things that compound, the harmonic mean averages rates, and for positive values AM ≥ GM ≥ HM.
Median, quartiles and mode — the median and quartiles split ordered data into halves and quarters; the mode is the most frequent value; Mode = 3 Median − 2 Mean.
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 151 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
The arithmetic mean is highly affected by:
Why (a): The first demerit of the arithmetic mean in the textbook: it is highly affected by extreme values, because every value enters the sum. (b) is wrong: Adding values gives the same total in any order. (c) is wrong: Changing the unit rescales the mean but does not distort it. (d) is wrong: The most frequent values decide the mode, not the mean.
Question 2 of 5
Which statement about quartiles is correct?
Why (b): The textbook: a quartile divides data into four equal parts at three points: the lower quartile Q1, the median Q2 and the upper quartile Q3. (a) is wrong: Ten equal parts are deciles. (c) is wrong: Q1 is the 25th percentile; the median is Q2. (d) is wrong: No such fixed ratio exists.
Question 3 of 5
Why are relative measures of dispersion used?
Why (c): Relative measures are coefficients without units, so they can compare the spread of different series, for example deposits of a large and a small branch. (a) is wrong: Central values come from averages. (b) is wrong: Expressing spread in the data's units is the job of absolute measures. (d) is wrong: Dispersion supplements an average; it does not replace it.
Question 4 of 5
Which formula gives the coefficient of variation?
Why (b): CV = σ ÷ x̄ × 100%: the standard deviation as a percentage of the mean. (a) is wrong: It inverts the ratio. (c) is wrong: It uses the variance instead of σ. (d) is wrong: That is the coefficient of range.
Question 5 of 5
A distribution with a higher and sharper peak than the normal curve, and fatter tails, is called:
Why (c): The textbook: distributions whose peaks are higher and sharper than mesokurtic, with fatter tails, are leptokurtic. (a) is wrong: Mesokurtic means a normal peak. (b) is wrong: Platykurtic means a lower, flatter peak with thinner tails. (d) is wrong: Skewness concerns asymmetry, not peakedness.
0 of 5 answered.
Traps in this unit
Class limits used instead of class marks.
Simple average of group means.
Arithmetic average of growth rates overstates growth.
Practise all 151 questions on Unit 3. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the ABM Online Mock Centre unlocks all 4,600+ ABM questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
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