Test Bank For Statistics For Business & Economics 12e (Chapter 02)

CHAPTER 3DESCRIPTIVE STATISTICS: NUMERICAL MEASURES
MULTIPLE CHOICE
1. Geometric mean is a measure of
a. location
b. dispersion
c. variability
d. weight of items, when arranged in descending order
ANS: A
PTS: 1
TOP: Descriptive Statistics
2. Growth factors for the population of Chattanoonga in the past two years has been 8 and 12. The
geometric mean has a value of
a. 20
b. square root of 20
c. square root of 96
d. 96
ANS: C
PTS: 1
3. Growth factors for the population of Atlanta in the past five years have been 1, 2, 3, 4 , and 5. The
geometric mean is
a. 15
b. square root of 15
c. 120
d. fifth root of 120
ANS: D
PTS: 1
4. Geometric mean of five observations is

a. the same as weighted mean
b. the same as mean
c. square root of the product of the 5 observations
d. fifth root of the product of the 5 observations
ANS: D
PTS: 1
5. The nth root of the product of the n observations is

a. weighted mean
b. geometric mean
c. product deviation
d. the sum of squares
ANS: B
PTS: 1
6. The measure of location which is the most likely to be influenced by extreme values in the data set is
the
a. range
b. median
c. mode
d. mean
ANS: D
PTS: 1
7. The measure of location which is the most likely to be influenced by extreme values in the data set is
the
a. range
b. median
c. mode
d. mean
ANS: D
PTS: 1
8. The most important statistical descriptive measure of the location of a data set is the
a. mean
b. median
c. mode
d. variance
ANS: A
PTS: 1
9. If two groups of numbers have the same mean, then

a. their standard deviations must also be equal
b. their medians must also be equal
c. their modes must also be equal
d. None of these alternatives is correct.
ANS: D
PTS: 1
10. The mean of the sample

a. is always smaller than the mean of the population from which the sample was taken
b. can never be zero
c. can never be negative
ANS: D
PTS: 1
11. When the smallest and largest percentage of items are removed from a data set and the mean is
computed, the mean of the remaining data is
a. the median
b. the mode
c. the trimmed mean
d. any of the above
ANS: C
PTS: 1
12. Since the population is always larger than the sample, the value of the sample mean
a. is always smaller than the true value of the population mean
b. is always larger than the true value of the population mean
c. is always equal to the true value of the population mean
d. could be larger, equal to, or smaller than the true value of the population mean
ANS: D
PTS: 1
13. Which of the following provides a measure of central location for the data?
a. standard deviation
b. mean
c. variance
d. range
ANS: B
PTS: 1
14. When computing the mean of a set of values xi, the value of xi
a. can never be zero
b. can never be negative
c. must always be positive
d. can be any value
ANS: D
PTS: 1
15. In computing the mean of a sample, the value of xi is divided by

a. n
b. n - 1
c. n + 1
d. n - 2
ANS: A
PTS: 1
16. A numerical value used as a summary measure for a sample, such as sample mean, is known as a
a. population parameter
b. sample parameter
c. sample statistic
d. population mean
ANS: C
PTS: 1
17. Since the population size is always larger than the sample size, then the sample statistic
a. can never be larger than the population parameter
b. can never be equal to the population parameter
c. can be smaller, larger, or equal to the population parameter
d. can never be smaller than the population parameter
ANS: C
PTS: 1
18. is an example of a
a. population parameter
b. sample statistic
c. population variance
d. mode
ANS: A
PTS: 1
19. The mean of a sample

a. is always equal to the mean of the population
b. is always smaller than the mean of the population
c. is computed by summing the data values and dividing the sum by (n - 1)
d. is computed by summing all the data values and dividing the sum by the number of items
ANS: D
PTS: 1
20. The hourly wages of a sample of 130 system analysts are given below.
mean = 60
mode = 73
median = 74
range = 20
variance = 324
The coefficient of variation equals

a. 0.30%
b. 30%
c. 5.4%
d. 54%
ANS: B
PTS: 1
21. The variance of a sample of 169 observations equals 576. The standard deviation of the sample equals
a. 13
b. 24
c. 576
d. 28,461
ANS: B
PTS: 1
22. The median of a sample will always equal the

a. mode
b. mean
c. 50th percentile
d. all of the above answers are correct
ANS: C
PTS: 1
23. The median is a measure of

a. relative dispersion
b. absolute dispersion
c. central location
d. relative location
ANS: C
PTS: 1
24. The 50th percentile is the

a. mode
b. median
c. mean
d. third quartile
ANS: B
PTS: 1
25. The 75th percentile is referred to as the

a. first quartile
b. second quartile
c. third quartile
d. fourth quartile
ANS: C
PTS: 1
26. The pth percentile is a value such that at least p percent of the observations are
a. less than or equal to this value
b. less than this value
c. more than or equal to this value
d. more than this value
ANS: A
PTS: 1
27. The difference between the largest and the smallest data values is the
a. variance
b. interquartile range
c. range
d. coefficient of variation
ANS: C
PTS: 1
28. The first quartile

a. contains at least one third of the data elements
b. is the same as the 25th percentile
c. is the same as the 50th percentile
d. is the same as the 75th percentile
ANS: B
PTS: 1
29. When computing the mean, the smallest value

a. can never be negative
b. can never be zero
c. can never be less than the mean
d. can be any value
ANS: D
PTS: 1
30. Which of the following is not a measure of central location?

a. mean
b. median
c. variance
d. mode
ANS: C
PTS: 1
31. If a data set has an even number of observations, the median

a. cannot be determined
b. is the average value of the two middle items
c. must be equal to the mean
d. is the average value of the two middle items when all items are arranged in ascending order
ANS: D
PTS: 1
32. Which of the following is a measure of dispersion?

a. percentiles
b. quartiles
c. interquartile range
d. all of the above are measures of dispersion
ANS: C
PTS: 1
33. The value which has half of the observations above it and half the observations below it is called the
a. range
b. median
c. mean
d. mode
ANS: B
PTS: 1
34. The most frequently occurring value of a data set is called the
a. range
b. mode
c. mean
d. median
ANS: B
PTS: 1
35. The interquartile range is

a. the 50th percentile
b. another name for the variance
c. the difference between the largest and smallest values
d. the difference between the third quartile and the first quartile
ANS: D
PTS: 1
36. The weights (in pounds) of a sample of 36 individuals were recorded and the following statistics were
calculated.
mean = 160
mode = 165
median = 170
range = 60
variance = 324

a. 0.1125%
b. 11.25%
c. 203.12%
d. 0.20312%
ANS: B
PTS: 1
37. The heights (in inches) of 25 individuals were recorded and the following statistics were calculated
mean = 70
mode = 73
median = 74
range = 20
variance = 784

a. 11.2%
b. 1120%
c. 0.4%
d. 40%
ANS: D
PTS: 1
38. The standard deviation of a sample of 100 observations equals 64. The variance of the sample equals
a. 8
b. 10
c. 6400
d. 4,096
ANS: D
PTS: 1
39. The variance of a sample of 81 observations equals 64. The standard deviation of the sample equals
a.
b.
c.
d.
9
4096
8
6561
ANS: C
PTS: 1
40. If index i (which is used to determine the location of the pth percentile) is not an integer, its value
should be
a. squared
b. divided by (n - 1)
c. rounded down
d. rounded up
ANS: D
PTS: 1
41. When the data are skewed to the right, the measure of Skewness will be
a. negative
b. zero
c. positive
d. one
ANS: C
PTS: 1
42. When data are positively skewed, the mean will usually be
a. greater than the median
b. smaller than the median
c. equal to the median
d. positive
ANS: A
PTS: 1
43. Which of the following is not a measure of dispersion?

a. the range
b. the 50th percentile
c. the standard deviation
d. the interquartile range
ANS: B
PTS: 1
44. The interquartile range is used as a measure of variability to overcome what difficulty of the range?
a. the sum of the range variances is zero
b. the range is difficult to compute
c. the range is influenced too much by extreme values
d. the range is negative
ANS: C
PTS: 1
45. If the variance of a data set is correctly computed with the formula using n - 1 in the denominator,
which of the following is true?
a. the data set is a sample
b. the data set is a population
c. the data set could be either a sample or a population
d. the data set is from a census
ANS: A
PTS: 1
46. In computing descriptive statistics from grouped data,

a. data values are treated as if they occur at the midpoint of a class
b. the grouped data result is more accurate than the ungrouped result
c. the grouped data computations are used only when a population is being analyzed
ANS: A
PTS: 1
47. The measure of dispersion that is influenced most by extreme values is

a. the variance
b. the standard deviation
c. the range
d. the interquartile range
ANS: C
PTS: 1
48. When should measures of location and dispersion be computed from grouped data rather than from
individual data values?
a. as much as possible since computations are easier
b. only when individual data values are unavailable
c. whenever computer packages for descriptive statistics are unavailable
d. only when the data are from a population
ANS: B
PTS: 1
49. The descriptive measure of dispersion that is based on the concept of a deviation about the mean is
a. the range
b. the interquartile range
c. the absolute value of the range
d. the standard deviation
ANS: D
PTS: 1
50. The numerical value of the standard deviation can never be

a. larger than the variance
b. zero
c. negative
d. smaller than the variance
ANS: C
PTS: 1
51. The sample variance

a. is always smaller than the true value of the population variance
b. is always larger than the true value of the population variance
c. could be smaller, equal to, or larger than the true value of the population variance
d. can never be zero
ANS: C
PTS: 1
52. The coefficient of variation is

a. the same as the variance
b. the standard deviation divided by the mean times 100
c. the square of the standard deviation
d. the mean divided by the standard deviation
ANS: B
PTS: 1
53. The variance can never be

a. zero
b. larger than the standard deviation
c. negative
d. smaller than the standard deviation
ANS: C
PTS: 1
54. The sum of deviations of the individual data elements from their mean is
a. always greater than zero
b. always less than zero
c. sometimes greater than and sometimes less than zero, depending on the data elements
d. always equal to zero
ANS: D
PTS: 1
55. Which of the following symbols represents the standard deviation of the population?
a. 2
b.
c.
d.
ANS: B
PTS: 1
56. Which of the following symbols represents the mean of the population?
a. 2
b.
c.
d.
ANS: C
PTS: 1
57. Which of the following symbols represents the variance of the population?
a. 2
b.
c.
d.
ANS: A
PTS: 1
58. Which of the following symbols represents the size of the population?
a. 2
b.
c.
d. N
ANS: D
PTS: 1
59. Which of the following symbols represents the mean of the sample?
a. 2
b.
c.
d.
ANS: D
PTS: 1
60. Which of the following symbols represents the size of the sample
a. 2
b.
c. N
d. n
ANS: D
PTS: 1
61. The symbol is used to represent

a. the variance of the population
b. the standard deviation of the sample
c. the standard deviation of the population
d. the variance of the sample
ANS: C
PTS: 1
62. The symbol 2 is used to represent

a. the variance of the population
b. the standard deviation of the sample
c. the standard deviation of the population
d. the variance of the sample
ANS: A
PTS: 1
63. The variance of the sample

a. can never be negative
b. can be negative
c. cannot be zero
d. cannot be less than one
ANS: A
PTS: 1
64. The measure of dispersion which is not measured in the same units as the original data is the
a. median
b. standard deviation
c. coefficient of determination
d. variance
ANS: D
PTS: 1
65. A numerical measure of linear association between two variables is the

a. variance
b. covariance
c. standard deviation
d. coefficient of variation
ANS: B
PTS: 1
66. Positive values of covariance indicate

a. a positive variance of the x values
b. a positive variance of the y values

c. the standard deviation is positive
d. positive relation between the independent and the dependent variables
ANS: D
PTS: 1
67. A numerical measure of linear association between two variables is the

a. variance
b. coefficient of variation
c. correlation coefficient
d. standard deviation
ANS: C
PTS: 1
68. The coefficient of correlation ranges between

a. 0 and 1
b. -1 and +1
c. minus infinity and plus infinity
d. 1 and 100
ANS: B
PTS: 1
69. The coefficient of correlation

a. is the same as the coefficient of determination
b. can be larger than 1
c. cannot be larger than 1
d. cannot be negative
ANS: C
PTS: 1
70. The value of the sum of the deviations from the mean, i.e.,
must always be
a. less than the zero
b. negative
c. either positive or negative depending on whether the mean is negative or positive
d. zero
ANS: D
PTS: 1
71. The numerical value of the variance

a. is always larger than the numerical value of the standard deviation
b. is always smaller than the numerical value of the standard deviation
c. is negative if the mean is negative
d. can be larger or smaller than the numerical value of the standard deviation
ANS: D
PTS: 1
72. Since the median is the middle value of a data set it

a. must always be smaller than the mode
b. must always be larger than the mode
c. must always be smaller than the mean
ANS: D
PTS: 1
73. In a five number summary, which of the following is not used for data summarization?
a.
b.
c.
d.
the smallest value

the largest value
the mean
the 25th percentile
ANS: C
PTS: 1
74. The relative frequency of a class is computed by

a. dividing the midpoint of the class by the sample size
b. dividing the frequency of the class by the midpoint
c. dividing the sample size by the frequency of the class
d. dividing the frequency of the class by the sample size
ANS: D
PTS: 1
75. During a cold winter, the temperature stayed below zero for ten days (ranging from -20 to -5). The
variance of the temperatures of the ten-day period
a. is negative since all the numbers are negative
b. must be at least zero
c. cannot be computed since all the numbers are negative
d. can be either negative or positive
ANS: B
PTS: 1
76. Which of the following is not a measure of dispersion?

a. mode
b. standard deviation
c. range
d. interquartile range
ANS: A
PTS: 1
77. If the coefficient of variation is 40% and the mean is 70, then the variance is
a. 28
b. 2800
c. 1.75
d. 784
ANS: D
PTS: 1
78. Given the following information:

Standard deviation = 8
Coefficient of variation = 64%
The mean would then be
a. 12.5
b. 8
c. 0.64
d. 1.25
ANS: A
PTS: 1
79. Since the mode is the most frequently occurring data value, it
a. can never be larger than the mean
b. is always larger than the median
c. is always larger than the mean

ANS: D
PTS: 1
80. A group of students had dinner at a local restaurant. The total bill for the dinner was $414.70. Each
student paid his/her equal share of the bill, which was $18.85. How many students were at the
dinner?
a. 4
b. 415
c. 19
d. 22
ANS: D
PTS: 1
81. The standard deviation of a sample was reported to be 20. The report indicated that
7200. What has been the sample size?
a. 16
b. 17
c. 18
d. 19
ANS: D
PTS: 1
82. The variance of a sample was reported to be 144. The report indicated that
has been the sample size?
a. 49
b. 50
c. 51
d. 52
ANS: C
PTS: 1
= 7200. What
83. From a population of size 1,000, a random sample of 100 items is selected. The mean of the sample
a. must be 10 times smaller than the mean of the population
b. must be equal to the mean of the population, if the sample is truly random
c. must be 10 times larger than the mean of the population
d. can be larger, smaller or equal to the mean of the population
ANS: D
PTS: 1
84. From a population of size 500, a random sample of 50 items is selected. The mode of the sample
a. must be 500
b. must be equal to the mode of population, if the sample is truly random
c. must be equal to the mean of the population, if the sample is truly random
d. can be larger, smaller or equal to the mode of the population
ANS: D
PTS: 1
85. From a population of size 400, a random sample of 40 items is selected. The median of the sample
a. must be 200, since 400 divided by 2 is 200
b. must be 10, since 400 divided by 400 is 10
c. must be equal to the median of population, if the sample is truly random

ANS: D
PTS: 1
86. The geometric mean of 2, 4, 8 is

a. 4.67
b. 5.0
c. 16
d. 4.0
ANS: D
PTS: 1
87. The geometric mean of 1, 1, 8 is

a. 10.0
b. 2.0
c. 3.33
d. 3.0
ANS: B
PTS: 1
88. The geometric mean of 1, 3, 5, and 6 is

a. 15.0
b. 5.0
c. 3.08
d. 3.75
ANS: C
PTS: 1
89. The geometric mean of 1, 2, 4, and 10 is

a. 2.99
b. 4.25
c. 17.0
d. 4.0
ANS: A
PTS: 1
Exhibit 3-1
The following data show the number of hours worked by 200 statistics students.
Number of Hours
0- 9
10 - 19
20 - 29
30 - 39
Frequency
40
50
70
40
90. Refer to Exhibit 3-1. The class width for this distribution
a. is 9
b. is 10
c. is 11
d. varies from class to class
ANS: B
PTS: 1
91. Refer to Exhibit 3-1. The number of students working 19 hours or less
a. is 40
b. is 50
c. is 90
d. cannot be determined without the original data
ANS: C
PTS: 1
92. Refer to Exhibit 3-1. The relative frequency of students working 9 hours or less
a. is .2
b. is .45
c. is 40
d. cannot be determined from the information given
ANS: A
PTS: 1
93. Refer to Exhibit 3-1. The cumulative relative frequency for the class of 10 - 19
a. is 90
b. is .25
c. is .45
d. cannot be determined from the information given
ANS: C
PTS: 1
Exhibit 3-2
A researcher has collected the following sample data
5
6
12
7
6
5
8
12
5
4
94. Refer to Exhibit 3-2. The median is

a. 5
b. 6
c. 7
d. 8
ANS: B
PTS: 1
95. Refer to Exhibit 3-2. The mode is

a. 5
b. 6
c. 7
d. 8
ANS: A
PTS: 1
96. Refer to Exhibit 3-2. The mean is

a. 5
b. 6
c. 7
d. 8
ANS: C
PTS: 1
97. Refer to Exhibit 3-2. The 75th percentile is

a. 5
b. 6
c. 7
d. 8
ANS: D
PTS: 1
Exhibit 3-3
A researcher has collected the following sample data. The mean of the sample is 5.
3
12
98. Refer to Exhibit 3-3. The variance is

a. 80
b. 4.062
c. 13.2
d. 16.5
ANS: D
PTS: 1
99. Refer to Exhibit 3-3. The standard deviation is

a. 8.944
b. 4.062
c. 13.2
d. 16.5
ANS: B
PTS: 1
100. Refer to Exhibit 3-3. The coefficient of variation is

a. 72.66%
b. 81.24%
c. 264%
d. 330%
ANS: B
PTS: 1
101. Refer to Exhibit 3-3. The range is

a. 1
b. 2
c. 10
d. 12
ANS: C
PTS: 1
102. Refer to Exhibit 3-3. The interquartile range is

a. 1
b. 2
c. 10
d. 12
ANS: B
PTS: 1
Exhibit 3-4
The following is the frequency distribution for the speeds of a sample of automobiles traveling on an
interstate highway.
Speed
Miles per Hour
50 - 54
55 - 59
Frequency
2
4
60 - 64
65 - 69
70 - 74
75 - 79
5
10
9
5
35

a. 35
b. 670
c. 10
d. 67
ANS: D
PTS: 1

a. 6.969
b. 7.071
c. 48.570
d. 50.000
ANS: D
PTS: 1

a. 6.969
b. 7.071
c. 48.570
d. 50.000
ANS: B
PTS: 1
Exhibit 3-5
You are given the following frequency distribution.
Class
10-14
15-19
20-24
25-29
30-34
Frequency
1
2
5
8
4

a. 500
b. 26.315
c. 30
d. 25
ANS: D
PTS: 1

a. 570
b. 5.477
c. 500
d. 30
ANS: D
PTS: 1

a. 570
b. 5.477
c. 25
d. 30
ANS: B
PTS: 1
109. Refer to Exhibit 3-5. The coefficient of variation is

a. 25%
b. 21.91%
c. 5.477%
d. 30%
ANS: B
PTS: 1
Exhibit 3-6
The closing stock price of MNM Corporation for the last 7 trading days is shown below.
Day
1
2
3
4
5
6
7
Stock Price
84
87
84
88
85
90
91

a. 84
b. 85
c. 86
d. 87
ANS: D
PTS: 1
111. Refer to Exhibit 3-6. The mode is

a. 84
b. 85
c. 86
d. 87
ANS: A
PTS: 1
112. Refer to Exhibit 3-6. The median is

a. 84
b. 85
c. 86
d. 87
ANS: D
PTS: 1
113. Refer to Exhibit 3-6. The range is

a. 7
b. 8
c. 9
d. 91
ANS: A
PTS: 1

a. 2.828
b. 8
c. 9
d. 81
ANS: B
PTS: 1
PROBLEM
1. The closing stock price of Ahmadi, Inc. for a sample of 10 trading days is shown below.
Day
1
2
3
4
5
6
7
8
9
10
Stock Price
84
87
84
88
85
90
91
83
82
86
For the above sample, compute the following measures.

a. The mean
b. The median
c. The mode
d. The variance
e. The standard deviation
f. The range
ANS:
a. 86
b. 85.5
c. 84
d. 8.8888
e. 2.9814
f. 9
PTS: 1
2. The hourly wages of a sample of eight individuals is given below.
Individual
A
B
C
D
E
F
G
H
Hourly Wage
(dollars)
27
25
20
10
12
14
17
19
For the above sample, determine the following measures:

a. The mean.
b. The standard deviation.
c. The 25th percentile.
ANS:
a.
b.
c.
18
6
13
PTS: 1
3. In 2008, the average age of students at UTC was 22 with a standard deviation of 3.96. In 2009, the
average age was 24 with a standard deviation of 4.08. In which year do the ages show a more
dispersed distribution? Show your complete work and support your answer.
ANS:
C.V. for 2008 = 18%, C.V. for 2009 = 17%
Therefore 2008 shows a more dispersed distribution.
PTS: 1
4. Consider the data in the following frequency distribution. Assume the data represent a population.
Class
2- 6
7 - 11
12 - 16
17 - 21
Frequency
2
3
4
1
For the above data, compute the following.

a. The mean
b. The variance
c. The standard deviation
ANS:
a.
b.
c.
11
21
4.58
PTS: 1
5. A private research organization studying families in various countries reported the following data for
the amount of time 4-year-old children spent alone with their fathers each day.
Country
Belgium
Canada
China
Finland
Germany
Nigeria
Sweden
United States
Time with Dad

(minutes)
30
44
54
50
36
42
46
42
For the above sample, determine the following measures:

a. The mean
b. The standard deviation
c. The mode
d. The 75th percentile
ANS:
a.
b.
c.
d.
43
7.56
42
48
PTS: 1
6. In 2012, the average donation to the Help Way was $225 with a standard deviation of $45. In 2013, the
average donation was $400 with a standard deviation of $60. In which year did the donations show a
more dispersed distribution?
ANS:
The coefficient of variation in 2012 was 20% (more dispersed).
The coefficient of variation in 2013 was 15%.
PTS: 1
7. The following frequency distribution shows the ACT scores of a sample of students:
Score
14 - 18
19 - 23
24 - 28
29 - 33
Frequency
2
5
12
1
For the above data, compute the following.

a. The mean
ANS:
a.
b.
24
3.77
PTS: 1
8. The following data show the yearly salaries of football coaches at some state supported universities.
University
A
B
C
D
E
F
G
H
Salary
(in $1,000)
53
44
68
47
62
59
53
94
For the above sample, determine the following measures.

a. The mean yearly salary
c. The mode
d. The median
e. The 70th percentile
ANS:
a.
b.
c.
d.
e.
60
15.8
53
56
62
PTS: 1
9. The ages of a sample of 8 faculty members selected from the School of Business Administration are
shown below.
Faculty
1
2
3
4
5
6
7
8
a.
b.
Age
42
30
73
50
51
37
42
59
Compute the average age.

Determine the mode.
c.
d.
Compute the median age.

Compute the standard deviation.
ANS:
a.
b.
c.
d.
48
42
46
13.5
PTS: 1
10. The grade point average of the students at UTC is 2.80 with a standard deviation of 0.84. The grade
point average of students at UTK is 2.4 with a standard deviation of 0.84. Which university shows a
more dispersed grade distribution?
ANS:
UTK's coefficient of variation = 35%. UTC's coefficient of variation = 30%.
Therefore, UTK has a more dispersed grade distribution.
PTS: 1
11. The following is a frequency distribution for the ages of a sample of employees at a local company.
Age
30 - 39
40 - 49
50 - 59
60 - 69
70 - 79
a.
b.
c.
d.
Frequency
2
3
7
5
1
Determine the average age for the sample.

Compute the variance.
Compute the coefficient of variation.
ANS:
a.
b.
c.
d.
54.5
117.65
10.85
19.91%
PTS: 1
12. A local university administers a comprehensive examination to the recipients of a B.S. degree in
Business Administration. A sample of examinations are selected at random and scored. The results are
shown below.
Grade
93
65
80
97
85
87
97
60
For the above data, determine
a. The mean
b. The median
c. The mode
d. The standard deviation
e. The coefficient of variation
ANS:
a.
b.
c.
d.
e.
83
86
97
14.01
16.88%
PTS: 1
13. The number of hours worked per week for a sample of ten students is shown below.
Student
1
2
3
4
5
6
7
8
9
10
a.
b.
c.
Hours
20
0
18
16
22
40
8
6
30
40
Determine the median and explain its meaning.

Compute the 70th percentile and explain its meaning.
What is the mode of the above data? What does it signify?
ANS:
a.
b.
c.
19; approximately 50% of the students work at least 19 hours

26; at least 70% of the students work less than or equal to 26 hours per week
40; the most frequent data element
PTS: 1
14. The frequency distribution below shows the monthly expenditure on gasoline for a sample of 14
individuals.
Expenditure
Frequency
55 - 59
60 - 64
65 - 69
70 - 74
75 - 79
a.
b.
2
3
4
3
2
Compute the mean.

ANS:
a.
b.
67
6.5
PTS: 1
15. The average wage of Tennessee cashiers is $14 per hour with a standard deviation of $4.20. In
Georgia, the average wage of cashiers is $16 with a standard deviation of $4.40. In which state do the
wages of cashiers appear to be more dispersed?
ANS:
The coefficient of variation in Tennessee = 30%. The coefficient of variation in Georgia = 27.5%.
Therefore, Tennessee shows a more dispersed distribution.
PTS: 1
16. A researcher has obtained the number of hours worked per week during the summer for a sample of
fifteen students.
40
25
35
30
20
40
30
20
Using this data set, compute the

a. median
b. mean
c. mode
d. 40th percentile
e. range
f. sample variance
g. standard deviation
ANS:
a.
b.
c.
d.
e.
f.
g.
25
25
20
20
35
128.571
11.339
PTS: 1
40
10
30
20
10
20
17. A sample of twelve families was taken. Each family was asked how many times per week they dine in
restaurants. Their responses are given below.
2
Using this data set, compute the

a. mode
b. median
c. mean
d. range
e. interquartile range
f. variance
g. standard deviation
h. coefficient of variation
ANS:
a.
b.
c.
d.
e.
f.
g.
h.
2
1.5
1.25
2
1.5
0.75
0.866
69.28%
PTS: 1
18. The following is a frequency distribution of grades of a sample of statistics examinations.

Grade
50 - 59
60 - 69
70 - 79
80 - 89
90 - 99
Frequency
7
10
22
15
6
Compute the following measures:

a. The mean
b. The variance
c. The standard deviation
d. The coefficient of variation
ANS:
a.
b.
c.
d.
75
130.25
11.41
15.22%
PTS: 1
19. The following shows the number of job losses and gains (in thousands) between 2008 and 2009 for a
sample of seven cities.
Job Change
(in thousands)
-11
-7
-6
-5
-5
0
6
City
Memphis
Nashville
Atlanta
Chattanooga
Birmingham
Huntsville
Knoxville
a.
b.
c.
d.
Compute the mean.

Determine the mode.
Determine the median.
Determine the standard deviation.
ANS:
a.
b.
c.
d.
-4000
-5000
-5000
5,477 (rounded)
PTS: 1
20. For the following frequency distribution,

Class
45 - 47
48 - 50
51 - 53
54 - 56
57 - 59
a.
b.
Frequency
3
6
8
2
1
Compute the mean.

Compute the standard deviation. (Assume the data represent a population.)
ANS:
a.
b.
50.8
3.06
PTS: 1
21. Below you are given the ages of a sample of 10 college students who are enrolled in statistics.
20
a.
b.
c.
18
20
22
18
Compute the mean.

20
22
17
19
24
d.
e.
f.
g.
h.

Determine the 25th percentile.
Determine the median
Determine the range.
ANS:
a.
b.
c.
d.
e.
f.
g.
h.
20
4.667
2.16
10.8%
18
20
22
7
PTS: 1
22. A sample of 9 mothers was taken. The mothers were asked the age of their oldest child. You are given
their responses below.
3
a.
b.
c.
d.
e.
f.
g.
h.
12
14
11
Compute the mean.

Determine the median
Determine the range.
ANS:
a.
b.
c.
d.
e.
f.
g.
h.
7.56
17.78
4.22
55.8
4.0
7.0
11
12
PTS: 1
23. For the following frequency distribution (assume the data represent a population),
Class
70 - 79
80 - 89
90 - 99
100 - 109
Frequency
5
9
11
9
110 - 119
a.
b.
Compute the mean.

ANS:
a.
b.
95
12.44 (rounded)
PTS: 1
24. The starting salaries of a sample of college students are given below.
Starting Salary
(In $1,000)
20-24
25-29
30-34
35-39
40-44
45-49
a.
b.
c.
d.
Frequency
1
3
7
6
2
1
Compute the mean.

ANS:
a.
b.
c.
d.
34
35.26
5.94
17.46%
PTS: 1
25. The following frequency distribution shows the time (in minutes) that a sample of students uses the
computer terminals per day.
Time
20 - 39
40 - 59
60 - 79
80 - 99
100 - 119
a.
b.
c.
d.
Frequency
2
4
6
4
2
Compute the mean.

ANS:
a.
b.
c.
d.
69.5
564.54
23.76
34.19%
PTS: 1
26. The growth rate in thepopulation of Atlanta for the past five years are shown below.
Year
Growth
Factors
1
1.0298
2
1.0270
3
1.0319
4
1.0258
5
1.0304
a.
b.
Compute the Geometric mean

What has been the percentage growth in the population of Atlanta?
ANS:
a.
b.
1.028977546
2.8977%
PTS: 1
27. The growth rates in the population of Dalton for the past three years are shown below.
Year
Growth
Factors
1
1.0313
2
1.0429
3
1.0343
a.
b.
Compute the Geometric mean

What has been the percentage growth in the population of Dalton?
ANS:
a.
b.
1.036161368
3.616%
PTS: 1
28. A sample of charge accounts at a local drug store revealed the following frequency distribution of
unpaid balances.
Unpaid Balance
10 - 29
30 - 49
50 - 69
70 - 89
90 - 109
Frequency
1
6
9
11
13
a.
b.
c.
d.
Determine the mean unpaid balance.

Determine the variance.
Determine the standard deviation.
ANS:
a.
b.
c.
d.
74
533.08 (rounded)
23.09
31.20%
PTS: 1
29. The amount of time that a sample of students spends watching television per day is given below.
Student
1
2
3
4
5
6
7
8
a.
b.
c.
d.
Time
(In Minutes)
40
28
71
48
49
35
40
57
Compute the mean.

Compute the median.
Compute the 75th percentile.
ANS:
a.
b.
c.
d.
46
44
13.5
53
PTS: 1
30. In 2012, the average donation to the Community Kitchen was $900 with a standard deviation of $180.
In 2013, the average donation was $1,600 with a standard deviation of $240. In which year do the
donations show a more dispersed distribution?
ANS:
The coefficient of variation in 2012 was 20% (more dispersed). The coefficient of variation in 2013
was 15%.
PTS: 1
31. The following data represent the daily demand (y in thousands of units) and the unit price (x in dollars)
for a product.
Daily Demand (y)
47
39
35
44
34
20
15
30
a.
b.
Unit Price (x)

1
3
5
3
6
8
16
6
Compute and interpret the sample covariance for the above data.
Compute and interpret the sample correlation coefficient.
ANS:
a.
b.
-47. Since the covariance is negative, it indicates a negative relationship between x and y.
-0.922. There is a strong negative relationship between x and y.
PTS: 1
32. The following observations are given for two variables.

y
5
8
18
20
22
30
10
7
a.
b.
c.
d.
x
2
12
3
6
11
19
18
9
Compute the standard deviation for x.
Compute the standard deviation for y.
ANS:
a.
b.
c.
d.
19.286 (rounded). Since the covariance is positive, it indicates a positive relationship between
x and y.
6.32
8.83
0.345. There is a positive relationship between x and y. The relationship is not very strong.
PTS: 1
33. Compute the weighted mean for the following data.

xi
Weight (wi)
9
8
5
3
2
10
12
4
5
3
ANS:
6.676
PTS: 1
34. Compute the weighted mean for the following data.

xi
19
17
14
13
18
Weight (wi)
12
30
28
10
10
ANS:
16
PTS: 1
35. Jason, a freshman at a local college, just completed 15 credit hours. His grade report is presented
below.
Course
Calculus
Biology
English
Music
P.E.
Credit
Hours
5
4
3
2
1
Grades
C
A
D
B
A
The local university uses a 4 point grading system, i.e., A = 4, B = 3, C = 2, D = 1, F = 0. Compute

Jason's semester grade point average.
ANS:
2.6
PTS: 1
36. The following data show the yearly salaries of a random sample of Chattanooga residents.
Resident
A
B
C
D
E
Salary
(In $1,000)
97
48
69
85
92
F
G
H
48
79
74
For the above sample, determine the following measures (Give your answer in dollars):
a.
b.
c.
d.
e.
The mean yearly salary.

The standard deviation.
The mode.
The median.
The 70th percentile
ANS:
a.
b.
c.
d.
e.
$74,000
$18,423.59
$48,000
$76,500
$85,000
PTS: 1
37. The following frequency distribution shows the yearly tuition (in $1,000s) of a sample of private
colleges.
Yearly
Tuition
12 - 16
17 - 21
22 - 26
27 - 31
Frequency
5
4
3
2
For the above data, compute the mean yearly tuition. (Give your answer in dollars.)
ANS:
$19,714.29
PTS: 1
38. The following data represent the daily supply (y in thousands of units) and the unit price (x in dollars)
for a product.
Daily Supply (y)
5
7
9
12
10
13
16
16
a.
Unit Price (x)

2
4
8
5
7
8
16
6
b.
c.
d.
Compute the standard deviation for the daily supply.

Compute the standard deviation for the unit price.
ANS:
a.
b.
c.
d.
11.43 (rounded). The covariance is positive. Therefore, there is a positive relationship between
x and y.
4
4.175
0.6844. There is a fairly strong positive relationship between x and y.
PTS: 1
39. The yearly incomes of the top highest paying professions in the United States are shown below.
Yearly Income
(in $1,000)
136
132
130
126
116
114
110
110
107
99
Profession
Surgeons
Obstetricians
Anesthesiologists
Internists
Pediatricians
Psychiatrists
Dentists
General Practitioners
Chief Executives
Airline Pilots
For the above sample, determine the following measures (Give your answer in dollars).
a.
b.
c.
d.
The mean yearly salary

The standard deviation
The median
The mode
ANS:
a.
b.
c.
d.
$118,000
$12,283.68
$115,000
$110,000
PTS: 1
40. The population change between 2000 and 2010 for several small cities are shown below.
City
Chattanooga
Collegedale
East Ridge
Lakeside
Population Change
(number of residents)
3083
1466
-461
1113
Ridgeside
Signal Mountain
Soddy-Daisy
Walden
-11
395
3290
437
For the above sample, determine the following measures.

a.
b.
c.
The mean
The median
ANS:
a.
b.
c.
1,164
1,385.51
775
PTS: 1
41. The Michael Painting Company has purchased paint from several suppliers. The purchase price per
gallon and the number of gallons purchased are shown below.
Supplier
A
B
C
D
Price Per Gallon ($)

23
25
29
27
Number of Gallons
700
200
100
200
Compute the weighted average price per gallon.

ANS:
$24.50
PTS: 1
42. In the fall semester of 2009, the average Graduate Management Admission Test (GMAT) of the
students at UTC was 500 with a standard deviation of 80. In the fall of 2010, the average GMAT was
560 with a standard deviation of 84. Which year's GMAT scores show a more dispersed distribution?
ANS:
The coefficient of variation in 2009 = 16%.
The coefficient of variation in 2010= 15%.
Therefore, 2005 had a more dispersed distribution.
PTS: 1
43. The following frequency distribution shows the starting salaries (in $1,000s) of a sample of business
students:
Starting Salary
22 - 26
27 - 31
32 - 36
Frequency
3
5
8
37 - 41
For the above data, compute the mean starting salary: (Give your answer in dollars.)
ANS:
$32,250
PTS: 1
44. In the last month, Nancy purchased gasoline from four different gas stations. The following table
shows the price per gallon and the gallons of gasoline that she purchased.
Gas Station
Texaco
Mobil
BP
Shell
Gallons
Purchased
20
8
18
12
Price per
Gallon ($)
3.95
3.10
4.80
3.99
Determine the average price per gallon that Nancy paid for the gasoline.
ANS:
$4.10 (rounded)
PTS: 1
45. The price of a selected stock over a five day period is shown below.
17, 11, 13, 17, 16
Using the above data, compute the mean, the median, and the mode.
ANS:
Mean = 14.8
Median = 16
Mode = 17
PTS: 1
46. Global Engineers hired the following number of Class 1 engineers during the first six months of the
past year. (Assume the data represent a sample.)
Month
January
February
March
April
May
June
a.
b.
No. of Class 1
Engineers Hired
3
2
4
2
6
0
Determine the mean, the median, the mode, and the range for the above data.
Compute the variance and the standard deviation.
c.
d.
Compute the first and the third quartiles.

Compute the z-scores for the months of May and June.
ANS:
a. Mean = 2.833 Median = 2.5 Mode = 2.0
b. S2 = 4.166
S = 2.041
c. First quartile = 2
Third quartile = 4
d. Z-score for May = 1.55 (rounded)
Z-score for June = -1.39 (rounded)
PTS: 1
Range = 6
47. In a statistics class, the average grade on the final examination was 75 with a standard deviation of 5.
Use Chebyshevs theorem to answer the following questions.
a.
b.
At least what percentage of the students received grades between 50 and 100?
Determine an interval for the grades that will be true for at least 70% of the students. (Hint:
First, compute the Z-score.)
ANS:
a. 96%
b. 75 (1.826)(5) = 65.87 to 84.13
PTS: 1
48. The flashlight batteries produced by one of the northern manufacturers are known to have an average
life of 60 hours with a standard deviation of 4 hours. Use Chebyshevs theorem to answer the
following questions.
a.
b.
c.
At least what percentage of flashlights will have a life of 54 to 66 hours?

At least what percentage of the batteries will have a life of 52 to 68 hours?
Determine an interval for the lives of the batteries that will be true for at least 80% of the
batteries. (Hint: First compute the Z-score.)
ANS:
a. 56%
b. 75%
c. 60 + (2.236)(4). This indicates that at least 80% of the batteries will have lives of 51.056 to
68.944 hours.
PTS: 1
49. Consider a sample with the following data values.

462
490
350
294
574
Compute the Z scores for the above five observations.

ANS:
Mean = 434
Standard Deviation = 112
X
Z-Score
462
0.25
490
0.5
350
-0.75
294
-1.25
574
1.25
PTS: 1
50. The standard deviation of a sample was reported to be 7. The report indicated that
What has been the sample size?
= 980.
ANS:
21
PTS: 1
51. The variance of a sample was reported to be 81. The report indicated that
has been the sample size?
= 972. What
ANS:
13
PTS: 1
52. The following data show the yearly salaries of a sample of EMBA graduates.
EMBA Student
A
B
C
D
E
F
G
H
a.
b.
c.
Salary (in $1,000)

88
97
90
110
114
98
92
95
Compute the mean yearly salary and give your answer in dollars.
Compute the standard deviation and give your answer in dollars.
Compute the 75th percentile and give your answer in dollars. Fully explain what the value
that you have determined indicates.
ANS:
a.
b.
c.
$98,000
$9,355.03
$104,000 Seventy percent of the observations are less than or equal to this value.
PTS: 1
53. Descriptive statistics for the closing stock prices of two companies for several trading periods are
shown below.
Baba, Inc.
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
a.
b.
Maman, Inc.
4.04
0.11
4.07
3.59
1.13
1.28
-1.10
0.04
3.98
2.00
5.98
416.05
103
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
16.41
0.22
16.83
16.59
2.34
5.48
9.10
-2.85
12.57
6.29
18.86
1919.63
117
Which companys stock price has a more dispersed distribution? Explain. Show your
complete work and support your answer.
Compare the Skewness of the two and explain what is indicated.
ANS:
a. Coefficient of variation for Baba, Inc = 27.97%
Coefficient of variation for Maman, Inc. = 14.25%
Therefore, Baba, Inc. shows a more dispersed stock price distribution.
b. Baba, Inc.s price is skewed to the right (+ 0.04) and Maman, Inc.s price is skewed to the left
(-2.85).
PTS: 1
54. The following frequency distribution shows the GMAT scores of a sample of MBA students.
GMAT Score
300 up to 400
400 up to 500
500 up to 600
600 up to 700
700 up to 800
Frequency
1
5
9
3
2
For the above data, compute the mean GMAT score.
ANS:
550
PTS: 1
55. The last semester grades of Nancy, a freshman at a local college are shown below.
Course
Credit Hours
Grades
Physics
Calculus
Biology
Music
P.E.

Nancys semester grade point average.
ANS:
2.8125
PTS: 1
56. The following data show the yearly salaries of a sample of MBA graduates.
MBA Student
A
B
C
D
E
F
G
H
a.
b.
c.
Salary (in $1,000)

78
87
80
100
104
88
82
85
Compute the mean yearly salary and give your answer in dollars.
Compute the standard deviation and give your answer in dollars.
Compute the 75th percentile and give your answer in dollars. Fully explain what the value
that you have determined indicates.
ANS:
a.
$88,000
b. $9,355.03
c.
PTS: 1
$94,000 Seventy percent of the observations are les
57. Descriptive statistics for the closing stock prices of two companies for several trading periods are
shown below.
Baba, Inc
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
a.
b.
4.00
0.11
3.92
4.19
1.12
1.25
-1.15
0.08
3.95
2.03
5.98
436.32
109
Maman, Inc.
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
15.91
0.29
16.59
15.58
3.21
10.31
3.52
-2.09
13.45
5.55
18.99
1972.61
124
Which companys stock price has a more dispersed distribution? Explain. Show your
complete work and support your answer.
Compare the Skewness' of the two and explain what is indicated.
ANS:
a. Coefficient of variation for Baba, Inc = 28%
Coefficient of variation for Maman, Inc. = 20.18%
Therefore, Baba, Inc. shows a more dispersed stock price distribution.
b. Baba, Incs price is skewed to the right (+ 0.08) and Maman, Incs price is skewed to the left (2.09).
PTS: 1
58. The following frequency distribution shows the GMAT scores of a sample of MBA students:
GMAT Score
300 up to 400
400 up to 500
500 up to 600
600 up to 700
700 up to 800
Frequency
2
6
10
5
2
For the above data, compute the mean GMAT score.

ANS:
546
PTS: 1
59. Last semester grades of Michael, a freshman at a local college are shown below.
Course
Credit Hours
Grades
Chemistry
Calculus
English
Music
P.E.

Michaels semester grade point average.
ANS:
2.33
PTS: 1
60. A recent survey of a local neighborhood measured the number of children per household. The results
are given below.
Household
1
2
3
4
5
6
7
8
9
Children
2
0
1
6
2
2
3
1
2
For the above data compute the following measures. (Round to the nearest tenth, as needed.)
a.
b.
c.
The mean
Then median
The mode
ANS:
a. 2.1
b. 2
c. 2
PTS: 1
61. The following data shows the number of students enrolled in various professors statistics classes.
Professor
Enrollment
A
256
B
167
C
159
D
164
E
170
156
For the above sample, compute the following measures.

a. The variance
c. If we consider professor As enrollment as an outlier, compute the variance and the standard
deviations, excluding Professor As class. (Round to the nearest hundredth, as needed.)
ANS:
a. 1461.47
b. 38.23
c. 32.7
PTS: 1
62. Below you are given a sample of ACT scores of 12 college applicants.
19
a.
b.
c.
23
27
21
32
17
20
29
22
30
25
15
Determine the first quartile.

Determine the interquartile range.
ANS:
a. 19.5 (average of 19 and 20)
b. 28 (average of 27 and 29)
c. 8.5
PTS: 1
63. Below is a sample of scores from a professors most recent exam.

Student
1
2
3
4
5
6
7
Calculate the following.
a.
b.
c.
The mean
The 65th percentile (Round to the nearest hundredth, as needed.)
ANS:
a. 88
b. 7.46
c. 91
PTS: 1
Score
83
91
79
99
88
81
95
64. Aubree, a college freshman, took 15 hours her first semester. Below is her grade report.
Class
Physics
Biology
Statistics
Seminar
Macroeconomics
Credit Hours
4
4
3
1
3
Grade
D
B
B
A
A
Aubrees university uses a 4-point grading system, i.e., A=4, B=3, C=2, D=1, F=0.
a.
b.
Compute Aubrees grade point average at the end of the semester.

The next semester, Aubree retakes physics and makes a B. If this B replaces her old grade
(D), what would her revised GPA be? (Assume the only class she took her second semester
was physics.) (Round to the nearest hundredth.)
ANS:
a. 2.73
b. 3.27
PTS: 1
65. The table below shows the population growth rate of a city for the years 2008 through 2012.
Population
Year
Growth Rate
2008
0.8923
2009
1.0587
2010
1.1934
2011
1.2345
2012
1.0995
a.
b.
Compute the geometric mean.

What has been the percentage growth in the population of the city between 2009 to 2012?
ANS:
a.. Geometric Mean = 1.088808
b. 8.88%
PTS: 1

Test Bank For Statistics For Business & Economics 12e (Chapter 02)

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CHAPTER 3DESCRIPTIVE STATISTICS: NUMERICAL MEASURES

TOP: Descriptive Statistics

TOP: Descriptive Statistics

TOP: Descriptive Statistics

4. Geometric mean of five observations is

TOP: Descriptive Statistics

5. The nth root of the product of the n observations is

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9. If two groups of numbers have the same mean, then

TOP: Descriptive Statistics

10. The mean of the sample

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15. In computing the mean of a sample, the value of xi is divided by

TOP: Descriptive Statistics

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19. The mean of a sample

TOP: Descriptive Statistics

The coefficient of variation equals

TOP: Descriptive Statistics

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22. The median of a sample will always equal the

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23. The median is a measure of

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24. The 50th percentile is the

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25. The 75th percentile is referred to as the

TOP: Descriptive Statistics

TOP: Descriptive Statistics

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28. The first quartile

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29. When computing the mean, the smallest value

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30. Which of the following is not a measure of central location?

TOP: Descriptive Statistics

31. If a data set has an even number of observations, the median

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32. Which of the following is a measure of dispersion?

TOP: Descriptive Statistics

TOP: Descriptive Statistics

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35. The interquartile range is

TOP: Descriptive Statistics

The coefficient of variation equals

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The coefficient of variation equals

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43. Which of the following is not a measure of dispersion?