CAPTULO 1

1) Business decisions may be made by interpreting a statistical analysis of the variables of

the process associated with the decision or by using instinct and insight derived from
experience with the business process. When might a decision be made by these latter
more
"unstructured"
techniques?
a) The business process on which the decision is made is unknown.
b) Variables associated with the business process cannot be measured.
c) Instinct is part of statistics.
d) Instinct or insight is always used in decision-making.
2) Which of the following exhibits the correct relationship between variables and values?
a) Red; price of an automobile.
b) Color of an automobile; $23,000.
c) Red; $23,000.
d) Color of an automobile; price of an automobile.
3) A statistics professor surveys the students in her class and finds that 20% are
sophomores and 45% are juniors. This is an example of:
a) descriptive statistics.
b) nominal data.
c)i inferential statistics.
d) secondary data.
4) What statistical task performed by the U.S. government led to the development of
computers?
a) analyzing the census results
b) determining import tariffs
c) calculating income taxes
d) evaluating the national budget
5) Which of the following does not represent one method to obtain primary source data?
a) Looking in professional magazines
b) Making observations
c) Sending a survey to customers
d) Conducting an experiment
6) The grades that a random sample of MBA students received over the last five years of
International Business classes represent what statistical concept?
a) The grades are a parameter
b) The grades are a population
c) The grades are a statistic
d) The grades are a sample
7) What method is used to sample a population so that it is representative of the
population?
a) All but the observations that have the lowest and highest values are selected.
b) Only the first half of a population is selected
c) Every other element in a population is chosen
d) Samples are chosen at random from the population

8) A newspaper advertising sales representative earns a commission on each

advertisement sold. This person made $3,000 in commissions during one month and
concludes that annual compensation will be $36,000. This is an example of:
a) descriptive statistics.
b) secondary data.
c) nominal data.
d) inferential statistics

9) A consumer confidence researcher asks several retailers to report the number of LCD
televisions sold during a particular month. These numbers most likely represent what
level of measurement?
a) nominal
b) ratio
c) ordinal
d) interval
10) A student evaluation of teaching effectiveness for a particular course asks students to
respond to their level of agreement with several statements according to the scale 1 =
Strongly Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, and 5 = Strongly Disagree. The
responses indicate what level of measurement?
a) ratio
b) ordinal
c) interval
d) nominal
11) A company publishes data on its quarterly earnings for its stockholders to evaluate. Is
this data primary or secondary source data?
a) The source is secondary for both the company and the stockholders
b) The source is secondary for the company and primary for the stockholders.
c) The source is primary for both the company and the stockholders
d) The source is primary for the company and secondary for the stockholders
12) If you have a digital scale in your home that only reads in integers, is your weight a
discrete variable?
a) It depends on the accuracy of the scale
b) No because weight is still a continuous variable regardless of the ability to measure it
c) It depends on your weight
d) Yes because the scale reports integers
13) Look at the survey questions that Good Tunes sent to their customers. What type of
variable and levels of measurement do the questions concerning overall service,
selection, and quality of the items purchased represent?
a) Continuous variables measured on a ratio scale
b) Categorical variables measured on the nominal scale
c) Categorical variables measured on an ordinal scale
d) Categorical variables measured on the interval scale
14) A question on a product registration card asks, How much money do you plan to spend
on DVD movie purchases during the next 6 months? What type of variable and level of
measurement does your response represent?
a) Continuous variable measured on a ratio scale
b) Continuous variable measured on an interval scale
c) Discrete variable measured on an ordinal scale
d) Discrete variable measured on a nominal scale
15) How might you obtain a statistic, that is a numerical value, from a categorical variable
that has "Yes" or "No" as the only possible responses?
a) At best you could only obtain an ordinal measure or ranking of the responses if you
count one response over the other.
b) You could count the number of "Yes" and "No" responses in the sample.
c) You could count the number of possible responses (two).
d) You cannot obtain a numerical value from a categorical variable

CAPTULO 2
1) What is the purpose of a summary table?
a) To sum the values of responses to a survey
b) To see differences between or among categories
c) To list data to create a bar or pie chart
d) This is the only way to present categorical data in numerical form
2) A graphical representation of a frequency distribution is called a__________________
a) stem-and-leaf plot
b) scatter diagram
c) time-series plot
d) histogram
3) You have a summary table and a simple bar chart (like the ones at the beginning of the
chapter) indicating where customers prefer to do their banking. How could you enhance the
bar chart to provide both visual and actual information?

a) Add values to the bar chart like what is commonly done on a pie chart
b) Only the summary table can show the actual values for the data
c) The bar chart and summary table must be presented together in order to represent this data.
d) Use vertical lines on the bar chart to show the values more precisely
4) It might be said that the stem-and-leaf display is really a quick and easy way of creating a
rudimentary chart or diagram for numerical data. If so, which chart is used to describe
categorical data does it most closely resemble?

a) The stem-and-leaf display most closely resembles a rudimentary Pareto chart

b) The stem-and-leaf display most closely resembles a rudimentary pie chart
c) The stem-and-leaf display most closely resembles a rudimentary bar chart
d) The stem-and-leaf display does not resemble any of the above charts or diagrams
5) The width of a class interval in a frequency distribution (or bar chart) will be approximately
equal to the range of the data divided by the ______________

a) average of the data set

b) number of class intervals
c) lowest value in the data set
d) highest value in the data set
6) Which of the above histograms represents the graph of city restaurant meal prices with an

interval of $8?

a) Both histograms
b) Only the histogram on the left
c) Only the histogram on the right
d) Neither histogram
7) When constructing a frequency distribution, which of the following rules must be followed?
a) The number of classes must be an even number
b) Adjacent classes cannot overlap

c) The midpoint of each class must be an integer

d) The width of each class is equal to the lowest value in the data set
8) The rule of thumb for creating a frequency distribution is to divide the data into 5-15

classes. While larger numbers of classes allow for larger data sets, how do you know exactly
how many classes to use?

a) Select the number of classes that provides definition to the shape of the data
b) If in doubt about the number of classes, select 10 since it is the midpoint between 5 and 15 classes
c) Determine the width of the class interval, then calculate the number of classes
d) Any number of classes between 5 and 15 is sufficient
9) The following numbers represent exam scores in an accounting class:

78, 93, 85, 81, 73, 96, 72, 86, 90, 85

If a stem-and-leaf diagram is developed from this data, how many stems will be used?
a)10
b)4
c)5
d)3
10) In the above figure of wine imports into the United States, what three guidelines for

developing good graphs have not been followed?

a) Distorted data, X axis not labeled, no title

b) Distorted data, unnecessary adornments, vertical axis not properly labeled
c) Unnecessary adornment, vertical scale does not begin at zero, no title
d) Distorted data, unnecessary adornment, no scales for either axis

11) Considering the various types of tables and charts introduced in this chapter, which table,

chart, diagram or plot would you use to depict categorical data for two variables in a visual
format?
a) contingency table
b) side-by-side bar chart
c) pie chart
d) scatter plot

12) The cumulative frequency for a particular class is equal to 35. The cumulative frequency for

the next class will be _________________

a) 35 minus the next class frequency
b) 35 plus the next class frequency
c) less than 35
d) equal to 65

13) hich of the following would be most helpful in the construction of a pie chart?
a) ogive
b) cumulative percentages
c) frequency distribution
d) relative frequencies
14) The table above shows the frequency and relative frequencies for 7 groups of restaurant

meal prices. How was the value of 0.36 obtained for the relative frequency of meals costing
$32 but less than $40?

a) The midpoint of the class is $36, so divide 36 by 100

b) (18/100) x 2 = 0.36
c) The number of data points is 50, so divide 18 by 50
d) (18 x 2)/100 = 0.36
15) The highest bar in a histogram represents?
a) The class with the lowest frequency
b) The class with the highest frequency
c) The class with the lowest relative frequency
d) The class with the highest cumulative frequency

CAPTULO 3
How might an extreme value in the sample data set affect the value of the mean?

All values are treated equally when determining the mean, so an extreme value cannot
affect it.
An extreme value cannot affect the mean if it is close to the mean.
Since all values are summed, any extreme value can influence the mean to a large
extent.
One extreme value is still only one value, so it cannot affect the mean very much.

Which of the following is not a measure of central tendency?

Interquartile range
Median
Mode
Geometric mean

Which of the following is the most appropriate measure of central tendency for
ordinal data?
Mean

Coefficient of Variation
Median
Variance

Which of the following measures of central tendency is not affected by extreme

values in the sample data set?
Median

Mode
Mean
Median and Mode

How many elements of a data set are between the first and third quartiles?
Three fourths
One fourth
One third
One half

Which of the following measures become larger as the data is more dispersed?
Median and Range
Mean, Variance, and Standard Deviation
Range, Variance, and Standard Deviation
Mean and Median

The sum of deviations about the arithmetic mean is always equal to

______________ .
Variance

Geometric Mean
0
1

The Chebyshev Rule indicates that the percentage of values that will be found
within three standard deviations of the mean will be _________ .
At least 97%
At least 89%
At least 75%
At least 67%

The distribution above is:

skewed to the right
skewed to the left
symmetric
normally distributed

Which of the following is not required for the construction of a boxplot?

Largest value
Second quartile
Median
Mean

A numerical measure for the strength of the linear relationship between two
variables is?
Sample standard deviation
Sample covariance
Sample dispersion
Sample linearity

The coefficient of correlation will be a value in which of the following ranges?

(-1, 1)
(0, 1)
(-1, 0)
(-infinity, +infinity)

How is the arithmetic mean related to the variance?

Variance is not related to the mean, but standard deviation is.
Variance measures the variability of values about the mean.

They are not related. One is a measure of central tendency, and the other is a
measure of variance.
Variance has the square of the mean in its formula.

When computing numerical descriptive measures from values that have been
summarized by a frequency distribution, which of the following is most important
to the calculation?
The number of class intervals in the frequency distribution.
The standard deviation of the class intervals.
The midpoint of the class intervals.
The range of the frequency distribution.

The difference between a data value and the arithmetic mean of a sample divided
by its standard deviation is called:
Mean variation

the empirical rule

Coefficient of correlation
Z score

CAPTULO 7
Ten samples of 20 boxes of cereal are weighed, and the means of the samples are found to
vary from 364.4 to 371.9 grams. If ten more samples of 30 boxes each were weighted, which
of the following ranges of means would you most likely expect to find among the ten
samples, given =368 grams and s=15 grams?
368368
365.3370.7
366.4369.1
364.4371.9

Why use samples rather than the entire population?

Selecting a sample is less time-consuming than using every item in the population.
An analysis based on a sample is more practical than an analysis of the population.
Selecting a sample is less costly than using every item in the population.
All of the above reasons justify statistical sampling procedures.

During the last general election, 70% of registered voters actually voted. What is
the probability that a telephone survey of 20 registered voters will indicate that
less than half actually voted?
0.0202
0.0251
The survey of 20 voters is not a large enough sample
0.9745

Which of the following sampling techniques will not result in a probability sample?
stratified

quota
random
systematic

A human resources department processes reimbursement requests for travel

expenses. Three hundred completed forms were submitted in the past month, and
in order to estimate the average travel expense, the HR Director constructs a
sampling procedure that will begin with the 7th expense form and collect every
10th form thereafter (17th, 27th, etc.). This procedure results in which of the
following types of samples?
simple random
convenience
systematic
stratified

The standard deviation of a sampling distribution is commonly called which of the

following?
standard margin
sampling deviation
standard error
statistical range

The Central Limit Theorem states that if n is large enough the distribution of
sample means follows which distribution?
exponential
uniform
random

normal

Ten samples of 30 boxes of cereal are weighed, and the means of the samples are
found to vary from 365.3 to 370.7 grams. What is the probability that another
sample of 30 boxes will have a mean of less than 365.3 grams?
0.4863
0.5
0.8379
0.1621

Increasing the sample size causes the standard error of the proportion to:
become less normal
remain the same
decrease
increase

Ten samples of 30 boxes of cereal are weighed, and the means of the samples are
found to vary from 365.3 to 370.7 grams. What is the interval around the
population mean that is expected to contain 75% of the sample means?
364.9371.2
365.3370.7
366.1369.9
367.4368.6

Which of the following situations would most likely be an example of an unethical

sampling method rather than just an inaccurate one?
Sampling only people who shop from 5-6 PM at a store to determine how many
people are buying a sale item.
Sampling only those who answer the phone when you call them to determine which
TV programs are watched in a particular city.
Sampling only the people who go through a particular entrance to determine which
team the spectators hope will win the game.
Sampling only certain neighborhoods in a town to determine how to spend tax
money on a recreation project.

If a population has a mean of 350 and a standard deviation of 25, determine the
probability that a random sample of 40 will have a mean between 335 and 375.
0.7257
0.8413
0.2743
0.5670

Suppose that 65% of all college students have an iPod. What is the probability
that a sample of 50 will indicate that more than 30 students own an iPod?
0.60
0.7704
0.2704
0.2296

Forty percent of teens prefer a new video game package to the existing design. If
the marketing department conducts a survey of 200 teens, what is the probability
that the random sample will indicate a sample proportion greater than 50%?
0.4981
0.0019

0.9981
0.50

Which of the following is not a potential survey error?

measurement
coverage
nonresponse
judgment

CAPTULO 8
What is the Z-value associated with a 95% confidence interval?

1.28
2.24
1.96
1.65

Which of the following statements is false?

There is a different Z-value used for each level of alpha.
In practice, the population mean is an unknown quantity that is to be estimated.
Alpha is the proportion of the distribution which is outside of the confidence interval.
It is possible to construct a 100% confidence interval for the population mean.

When a range of values is used to estimate a population parameter, it is called

an estimation region
a boundary estimate
a point estimate
an interval estimate

Which of the following is not a property of the t distribution?

Its exact shape is characterized by the degrees of freedom.
As the sample size increases, it gradually approaches the normal distribution.

It is symmetric.
All of the above are properties of the t distribution.

A 95% confidence interval for the mean can be interpreted to mean which of the
following?
You can be 95% certain that you have selected a sample with a corresponding
confidence interval that includes the population mean.

If all possible samples are taken and confidence intervals are calculated, 95% of
those intervals will include the true population mean.
Both of the above are correct.
None of the above is correct.

A random sample of 30 items is selected from a population with a standard

deviation of 10. If the sample mean is 52, the 90% confidence interval to estimate
the population mean is?
47.9 to 56.1
49.0 to 55.0
49.7 to 54.3
48.4 to 55.6

A random sample of 20 items is selected from a population. The sample yields a

mean of 22.8 and a standard deviation of 3.4. Determine a 95% confidence
interval for the population mean.
21.21 to 24.39
21.48 to 24.12
21.31 to 24.29
21.55 to 24.05

Two random samples have sizes of 50 and 25. Which of the following is true for a
99% confidence interval?
The sample of n = 50 has a greater degree of confidence.
The confidence interval for the sample of n = 25 is narrower.
The sample of n = 25 has a greater degree of confidence.
The confidence interval for the sample of n = 50 is narrower.

When estimating the population mean with a small sample, the t distribution may
be used with how many degrees of freedom?
n+1
n
n-1
n/2

A random sample of 72 statistics students was taken to estimate the proportion of

students who are also in the Math Club. The 90% confidence interval was 0.438 to
0.642. Using this information, what sample size would be necessary to estimate
the true proportion to within 0.08 using 95% confidence?
400
600
105
150

Which of the following statements is true concerning the width of a confidence

interval for a proportion?
The confidence interval is wider for 90% confidence than for 95% confidence.

The confidence interval is wider for a sample of size 100 than for a sample of size
50.
The confidence interval is narrower for 99% confidence than for 95% confidence.
The confidence interval is wider when the sample proportion is 0.5 than when the
sample proportion is 0.2.

When determining the sample size for a mean for a given level of confidence and
standard deviation, if the sampling error (e) is allowed to increase, which of the
following is true regarding the sample size?
The sample size will decrease.
The sample size will remain the same.
The relative sample size cannot be determined.
The sample size will increase.

A researcher would like to estimate the proportion of the population that has blue
eyes. A random sample of 700 individuals indicates that 279 have blue eyes. The
90% confidence interval for the proportion of the population with blue eyes is
indicated by which of the following?
36.8% to 43.0%

35.5% to 44.3%.
36.3% to 43.5%
30.1% to 49.9%

$250 plus or minus $11

$250 plus or minus $9
$250 plus or minus $15
$250 plus or minus $7

Which of the following is used in auditing to study the magnitude of numerical

errors that exist in a sample?
error analysis

number theory
difference estimation
audit trail