CHAPTERONE

IntroductiontoStatistics

1
2ChapterOne

D 1. The complete collection of all entities under study is called the

__________.

E A. sample
Term B. parameter
C. statistic
D. population

B 2. A portion (subset) of the entities under study is called the

__________.

E A. parameter
Term B. sample
C. population
D. statistic

2
 Chapter1:IntroductiontoStatistics 3
B 3. Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s
Electrical Division, is leading a study to identify and assess the
relative importance of product features. Manuel directs his staff
to design a survey questionnaire for distribution to all of Planos
954 customers. For this study, the set of 954 customers is a
________________.

E A. statistic
BApp B. population
C. parameter
D. sample

D 4. Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s

Electrical Division, is leading a study to identify and assess the
relative importance of product features. Manuel directs his staff
to design a survey questionnaire for distribution to 100 of
Planos 954 customers. For this study, the set of 100 customers
is a ________________.

E A. statistic
BApp B. population
C. parameter
D. sample

C 5. Sue Taylor, Director of Global Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
surveying all 1,500 industrial customers. For this study, the set
of 1,500 industrial customers is a ________________.

E A. statistic
BApp B. sample
C. population
D. parameter

B 6. Sue Taylor, Director of Global Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
selecting a focus group of 40 industrial customers. For this
study, the set of 40 industrial customers is a ________________.

E A. statistic
BApp B. sample
4 TestBank
C. population
D. parameter
A 7. Abel Alonzo, Director of Human Resources, is exploring the
causes of employee absenteeism at Batesville Bottling during
the last operating year (January 1, 1999 through December 31,
1999). For this study, the set of all employees who worked at
Batesville Bottling during the last operating year is a
________________.

E A. population
BApp B. sample
C. statistic
D. parameter

B 8. Abel Alonzo, Director of Human Resources, is exploring the

causes of employee absenteeism at Batesville Bottling during
the last operating year (January 1, 1999 through December 31,
1999). Personnel records for 50 of the plant's 250 employees
are selected for analysis. For this study, the group of 50
employees is a __________.

E A. population
BApp B. sample
C. parameter
D. statistic
B 9. When a person collects information from the entire population,
this is called a _______.

E A. sample
Term B. census
C. statistic
D. parameter

B 10. Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s

Electrical Division, is leading a study to identify and assess the
relative importance of product features. Manuel directs his staff
to design a survey questionnaire for distribution to all of Planos
954 customers. Manuel is ordering a ____________.

M A. statistic from the customers

BApp B. census of the customers
C. sample of the customers
D. sorting of the customers
 Chapter1:IntroductiontoStatistics 5
D 11. Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s
Electrical Division, is leading a study to identify and assess the
relative importance of product features. Manuel directs his staff
to design a survey questionnaire for distribution to 100 of
Planos 954 customers. Manuel is ordering a ____________.

M A. statistic from the customers

BApp B. census of the customers
C. sorting of the customers
D. sample of the customers

B 12. Sue Taylor, Director of Global Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
surveying all 1,500 industrial customers Sue is ordering a
__________.

M A. statistic from the industrial customers

BApp B. census of the industrial customers
C. sample of the industrial customers
D. sorting of the industrial customers

D 13. Sue Taylor, Director of Global Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
selecting a focus group of 40 industrial customers. Sue is
ordering a __________.

M A. statistic from the industrial customers

BApp B. census of the industrial customers
C. sorting of the industrial customers
D. sample of the industrial customers

A 14. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,

suspects irregularities in the payroll system, and orders an
inspection of "each and every payroll voucher issued since
January 1, 1999." Pinky is ordering a __________________.

M A. census of the payroll records

BApp B. statistic from the payroll records
C. sample of the payroll records
D. sorting of the payroll records
6 TestBank
C 15. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,
suspects irregularities in the payroll system, and orders an
inspection of "every tenth payroll voucher issued since January
1, 1999." Pinky is ordering a __________________.

M A. census of the payroll records

BApp B. parameter from the payroll records
C. sample of the payroll records
D. sorting of the payroll records

C 16. Upon discovering an improperly adjusted drill press, Jack Joyner,

Director of Quality Control, ordered a 100% inspection of all
castings drilled on the evening shift. Jack is ordering a
___________________.

M A. sample of the castings

BApp B. sorting of the castings
C. census of the castings
D. statistic from the castings

A 17. Upon discovering an improperly adjusted drill press, Jack Joyner,

Director of Quality Control, ordered an inspection of "every fifth
casting drilled on the evening shift." Jack is ordering a
___________________.

M A. sample of the castings

BApp B. sorting of the castings
C. census of the castings
D. parameter from the castings
B 18. Greek letters are commonly used to represent _______.

M A. sample statistics
Term B. population parameters
C. descriptive measures
D. inferential statistics

C 19. Which of the following symbols is used to represent a population

parameter?

M A. ~
Term B. #
C.
D.
 Chapter1:IntroductiontoStatistics 7
A 20. Sue Taylor, Director of Global Industrial Sales, is concerned by a
deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
surveying all 1,500 industrial customers. One question on the
survey asked the customers to rate Merchandise is delivered on
time on a scale of 1 to 5, with 1 meaning never and 5
meaning always. The average response of the 1,500
customers to this question is a _________________.

M A. parameter
BApp B. population
C. sample
D. statistic

C 21. Abel Alonzo, Director of Human Resources, is exploring the

causes of employee absenteeism at Batesville Bottling during
the last operating year (January 1, 1999 through December 31,
1999). The average number of absences per employee,
computed from the personnel data of all employees, is a
________________.

M A. population
BApp B. sample
C. parameter
D. statistic

A 22. Abel Alonzo, Director of Human Resources, is exploring the

causes of employee absenteeism at Batesville Bottling during
the last operating year (January 1, 1999 through December 31,
1999). The most appropriate symbol for the average number of
absences per employee, computed from the personnel data of
all employees, is ________________.

M A.
Term B. #
C. ~
D.
8 TestBank
D 23. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,
suspects irregularities in the payroll system, and orders an
inspection of "each and every payroll voucher issued since
January 1, 1999 to determine the percentage of irregular
vouchers." The percentage which Pinky ordered is a
__________________.

M A. sample statistic
BApp B. sample parameter
C. sorted order
D. population parameter

B 24. Statistics are usually represented by _______.

M A. Greek letters
Term B. Roman letters
C. ordinal data
D. interval data

A 25. Which of the following symbols is used to represent a sample

statistic?

M A. S
Term B. ~
C.
D.

D 26. Sue Taylor, Director of Global Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
selecting a focus group of 40 industrial customers. One question
asked the focus group customers to rate Merchandise is
delivered on time on a scale of 1 to 5, with 1 meaning never
and 5 meaning always. The average response of the 40
customers to this question is a _________________.

M A. parameter
BApp B. population
C. sample
D. statistic
 Chapter1:IntroductiontoStatistics 9
A 27. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,
suspects irregularities in the payroll system, and orders an
inspection of "every tenth payroll voucher issued since January
1, 1999 and a calculation of the percentage of irregular vouches
in this group." The percentage which Pinky ordered is a
__________________.

M A. sample statistic
BApp B. sample parameter
C. sorted order
D. population parameter

D 28. Abel Alonzo, Director of Human Resources, is exploring the

causes of employee absenteeism at Batesville Bottling during
the last operating year (January 1, 1999 through December 31,
1999). Personnel records of 50 employees are selected for
analysis. (The plant employees 250.) For this study, the
average number days absent for these 50 employees is a
________________.

M A. population
BApp B. sample
C. parameter
D. statistic

C 29. The lowest level of data measurement is _______.

E A. interval level
Term B. ordinal level
C. nominal level
D. ratio level

D 30. Which of the following operations is meaningful for processing

nominal data?

M A. addition
Term B. multiplication
C. ranking
D. counting

A 31. Which scale of measurement has these two properties: linear

distance is meaningful and the location of origin (zero) is
arbitrary?

E A. interval level
10 TestBank
Term B. ordinal level
C. nominal level
D. ratio level

D 32. Which scale of measurement has these two properties: linear

distance is meaningful and the location of origin (zero) is
absolute (natural)?

E A. interval level
Term B. ordinal level
C. nominal level
D. ratio level

A 33. Sue Taylor, Director of Global Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
surveying all 1,500 industrial customers. One question on the
survey asked the customers Which of the following best
describes your primary business: a. manufacturing, b.
wholesaler, c. retail, d. service. The measurement level for this
question is _________________.

E A. nominal level
BApp B. ordinal level
C. interval level
D. ratio level

A 34. A question in a survey of microcomputer users asked Which

operating system do you use most often: a. Apple OS 7, b. MS
DOS, c. MS Windows 95, d. Unix. The measurement level for
this question is _________________.

E A. nominal level
BApp B. ordinal level
C. interval level
D. ratio level

C 35. Which of the following operations is meaningful for processing

ordinal data, but is meaningless for processing nominal data?

M A. addition
Term B. multiplication
C. ranking
D. counting
Chapter1:IntroductiontoStatistics 11
12 TestBank
B 36. Sue Taylor, Director of Global Industrial Sales, is concerned by a
deteriorating sales trend. Specifically, the number of customers
is stable at 1,500, but they are purchasing less each year. She
orders her staff to search for causes of the downward trend by
surveying all 1,500 industrial customers. One question on the
survey asked the customers How many people does your
company employ: a. 0 - 25, b. 26 - 100, c. 101 - 1000, d.
1001+. The measurement level for this question is __________.

E A. nominal level
BApp B. ordinal level
C. interval level
D. ratio level

C 37. A consumer has been asked to rank five cars based upon their
desirability. This level of measurement is _______.

M A. nominal
BApp B. ratio
C. ordinal
D. interval

C 38. Morningstar Mutual Funds analyzes the risk and performance of

mutual funds. Each mutual fund is assigned an overall rating of
one to five stars. One star is the lowest rating, and five stars is
the highest rating. This level of measurement is __________.

E A. nominal
BApp B. ratio
C. ordinal
D. interval

D 39. A level of data measurement that has an absolute zero is called

_______.

E A. nominal
Term B. ordinal
C. interval
D. ratio
 Chapter1:IntroductiontoStatistics 13
A 40. A person has decided to code a particular set of sales data. A
value of 0 is assigned if the sales occurred on a weekday, and a
value of 1 means it happened on a weekend. This is an example
of _______.

E A. nominal level data

BApp B. ordinal level data
C. interval level data
D. ratio level data

A 41. Members of the accounting department's clerical staff were

asked to rate their supervisor's leadership style as either (1)
authoritarian or (2) participatory. This is an example of
_____________.

E A. nominal level data

BApp B. ordinal level data
C. interval level data
D. ratio level data

B 42. A market research analyst has asked consumers to rate the

appearance of a new package on a scale of 1 to 5. A 1 means
that the appearance is awful while a 5 means that it is excellent.
The level of this data is usually considered _______.

M A. nominal
BApp B. ordinal
C. interval
D. ratio

A 43. The social security number of employees would be an example

of what level of data measurement?

E A. nominal
BApp B. ordinal
C. interval
D. ratio

D 44. The dollar sales of a restaurant is an example of what level of

data measurement?

M A. nominal
BApp B. ordinal
C. interval
D. ratio
14 TestBank
 Chapter1:IntroductiontoStatistics 15
D 45. Grades on a test range from 0 to 100. This level of data is
_______.

E A. nominal
App B. ordinal
C. interval
D. ratio
C 46. If it were not for the existence of an "absolute zero," ratio data
would be considered the same as _______.

E A. nominal
Term B. ordinal
C. interval
D. descriptive data

D 47. Scholastic Aptitude Test scores are an example of what type of

measurement scale?

M A. nominal
App B. ordinal
C. interval
D. ratio

C 48. Which types of data are normally used with parametric

statistics?

M A. ratio and ordinal

Term B. nominal and ordinal
C. interval and ratio
D. interval and ordinal

B 49. Which types of data are normally used with nonparametric

statistics?

M A. ratio and ordinal

Term B. nominal and ordinal
C. interval and ratio
D. interval and ordinal

B 50. Using data from a group to generalize to a larger group involves

the use of _______.

M A. descriptive statistics
Term B. inferential statistics
C. population derivation
16 TestBank
D. sample persuasion
B 51. A student makes an 82 on the first test in a statistics course.
From this, she assumes that her average at the end of the
semester (after other tests) will be about 82. This is an example
of _______.

M A. descriptive statistics
App B. inferential statistics
C. nonparametric statistics
D. wishful thinking

C 52. Jessica Salas, president of Salas Products, is reviewing the

warranty policy for her company's new model of automobile
batteries. Life tests performed on a sample of 100 batteries
indicated an average life of seven years under normal usage.
Jessica recommended a six-year warranty period for the new
model. This is an example of _____________.

M A. descriptive statistics
BApp B. nonparametric statistics
C. inferential statistics
D. nominal data

D 53. Upon discovering an improperly adjusted drill press, Jack Joyner,

Director of Quality Control, ordered an inspection of "every fifth
casting drilled on the evening shift." Less than 1% of the
castings were defective; so, Jack released the evening shift's
production to assembly. This is an example of _______________.

M A. nonparametric statistics
BApp B. nominal data
C. descriptive statistics
D. inferential statistics

C 54. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,

suspects irregularities in the payroll system, and orders an
inspection of "each and every payroll voucher issued since
January 1, 1999." Five percent of the payroll vouchers contained
material errors. This is an example of _______________.

H A. nonparametric statistics
BApp B. nominal data
C. descriptive statistics
D. inferential statistics
Chapter1:IntroductiontoStatistics 17
18 TestBank
B 55. A new sales person is paid a commission on each sale. This
person made $2,000 his first month on the job. From this he
concludes that he will make $24,000 during his first year. This is
an example of _______.

E A. descriptive statistics
BApp B. inferential statistics
C. nonparametric statistics
D. nominal data

A 56. A statistics instructor collects information about the background

of his students. About 30% have taken economics and about
40% have taken accounting. There are 23 male students and 27
female students in this class. This is an example of _______.

E A. descriptive statistics
App B. inferential statistics
C. nonparametric statistics
D. nominal data

B 57. A market researcher is interested in determining the average

income for families in Duval County, Florida. To accomplish this,
she takes a random sample of 400 families from the county and
uses the data gathered from these families to estimate the
average income for families of the entire county. This process is
an example of _______.

H A. descriptive statistics
BApp B. inferential statistics
C. intermediate statistics
D. a census

A 58. The Universal Pulp Company has a plant in Portland, Oregon.

Management has decided to determine the average number of
sick days taken per worker in this plant in 1991. To accomplish
this, the management gathers records on all the workers in the
plant and averages the number of sick days taken in 1991 by
each worker. This process is using _______.

M A. descriptive statistics
BApp B. inferential statistics
C. company-wide statistics
D. locale-specific statistics
 Chapter1:IntroductiontoStatistics 19
D 59. The Magnolia Swimming Pool Company wants to determine the
average number of years it takes before a major repair is
required on one of the pools that the company constructs. The
president of the company asks Rick Johnson, a company
accountant, to randomly contact fifty families that built Magnolia
pools in the past ten years and determine how long it was in
each case until a major repair. The information will then be used
to estimate the average number of years until a major repair for
all pools sold by Magnolia. The average based on the data
gathered from the fifty families can best be described as a
_______.

M A. sample
BApp B. population
C. parameter
D. statistic

D 60. The Chamber of Commerce wants to assess its membership's

opinions of the North American Free Trade Agreement. One-
hundred of the 2,000 members are randomly selected and
contacted via telephone. Seventy-five reported an overall
favorable opinion, and twenty-five reported an overall
unfavorable opinion. The proportion, 0.75, is a ___________.

M A. sample
BApp B. population
C. parameter
D. statistic

C 61. What proportion of San Diego voters favor trade restrictions

with China? In an effort to determine this, a research team calls
every registered voter in San Diego and successfully contacts
them. The proportion from the data gathered from the calls
most likely is a _______.

M A. sample
App B. population
C. parameter
D. statistic
20 TestBank
D 62. A researcher wants to know what the average variation is in
altimeters of small, privately owned airplanes. The task of
determining this is expensive and time consuming, if even
possible, given the large number of such airplanes. The
researcher decides to use government records to randomly
locate the owners of ten such planes and then get permission to
test the altimeters. When the researcher is done, he will use the
data gathered from the group of ten to reach conclusions about
all small, privately owned airplanes. This process can best be
described as _______.

H A. data statistics
App B. research statistics
C. descriptive statistics
D. inferential statistics

C 63. A researcher wants to know what the average variation is in

altimeters of small, privately owned airplanes. The task of
determining this is expensive and time consuming, if even
possible, given the large number of such airplanes. The
researcher decides to use government records to randomly
locate the owners of ten such planes and then get permission to
test the altimeters. When the researcher is done, he will use the
data gathered from the group of ten to reach conclusions about
all small, privately owned airplanes. The data gathered on the
group of ten airplanes is best described as _______.

H A. measurements
App B. data
C. statistics
D. parameters.

C 64. How much inventory do Christmas tree sales lots keep? A

researcher goes from location to location around the city
counting the number of trees in each lot. These numbers most
likely represent what level of data?

M A. nominal
BApp B. ordinal
C. ratio
D. interval
 Chapter1:IntroductiontoStatistics 21
B 65. During the Valentine's season, different offices in a company are
encouraged to decorate their doors. A committee then goes
around and ranks the doors according to how well decorated
they are. The best door gets a ranking of one, the second best
gets a ranking of two, etc. The numbers of these rankings
represent which level of data?

M A. interval
BApp B. ordinal
C. nominal
D. ratio

A 66. A large manufacturing company in Indianapolis produces valves

for the chemical industry. According to specifications, one
particular valve is supposed to have a five-inch opening on the
side. Quality control inspectors take random samples of these
valves just after the hole is bored. They measure the size of the
hole in an effort to determine if the machine is
out-of-adjustment. The measurement of the diameter of the
hole represents which level of data?

M A. ratio
BApp B. nominal
C. ordinal
D. interval

B 67. A marketing demographic survey is undertaken to determine the

market potential for a new product. One of the questions asked
is: What type of residence do you live in? Respondents are
offered several possible answers including: house, apartment,
or condominiums. In order to computerize the survey answers,
the responses are coded as a 1 if the answer is "house", a 2 if
the answer is an "apartment", and a 3 if the answer is a
"condominium". These numbers, 1, 2, and 3, are an example of
what level of data?

E A. interval
BApp B. nominal
C. ordinal
D. ratio
22 TestBank
C 68. A marketing survey is conducted to ascertain the potentiality of
several new products. A series of focus groups is used to
conduct this survey. At the end of one of the sessions, the group
members are asked to rank the remaining eight products in
order of desirability. A one indicates the most favored product
and an eight is awarded to the least desirable. The numbers are
examples of what level of data?

M A. ratio
BApp B. interval
C. ordinal
D. nominal

C 69. A business is attempting to find the best small town in the

United States in which to relocate. As part of the investigation,
the elevations of all small towns in the United States are
researched. Some towns are located high in the Rockies with
elevations over 8,000 feet. There are even some towns located
in the south central valley of California with elevations below sea
level (for example, elevations of around -100 feet). These
elevations can best be described as what level of data?

M A. nominal
BApp B. ordinal
C. interval
D. ratio

D 70. The unemployment rate is often used as an indicator of a

communitys economic vitality. An unemployment rate is best
described as what level of measurement?

E A. nominal
BApp B. ordinal
C. interval
D. ratio

D 71. The apartment vacancy rate is often used as an indicator of a

communitys need for residential housing construction. The
apartment vacancy rate is best described as what level of
measurement?

E A. nominal
BApp B. ordinal
C. interval
D. ratio
 Chapter1:IntroductiontoStatistics 23

A 72. An investor evaluates the performance of her portfolio by

calculating the portfolios rate of return. The portfolios rate of
return can best be described as what level of data?

M A. ratio
BApp B. interval
C. ordinal
D. nominal

D 73. A business is attempting to find the best small town in the

United States in which to relocate. As part of the investigation,
the availability of vocational, technical education in small towns
in the United States are researched. Vocational, technical
education is available within fifty miles of some small town; for
others it is not. The availability of vocational, technical
education can best be described as what level of data?

M A. ratio
BApp B. interval
C. ordinal
D. nominal

B 74. Colleges and universities often assign numbers as student

identification numbers. These numbers are best categorized as
what level of data?

E A. interval
App B. nominal
C. ordinal
D. ratio

B 75. Undergraduate university students are usually classified as

freshmen, sophomores, juniors, and seniors. If numeric codes of
1, 2, 3, and 4 are used to represent these four categories, the
level of data measurement is ________________.

E A. nominal
App B. ordinal
C. interval
D. ratio
24 TestBank
B 76. At many universities, students are assigned a grade of A, B, C,
D, or F at the completion of each course. These letter grades
are translated to 4, 3, 2, 1, and 0 grade (quality) points,
respectively. The level of data measurement is ____________.

M A. nominal
App B. ordinal
C. interval
D. ratio

C 77. Financial institutions are often ranked by the volume of deposits.

This ranking is what level of measurement?

E A. ratio
BApp B. interval
C. ordinal
D. nominal

A 78. A chemical plant in Louisiana has a tank that holds a particular

chemical. Every day, a technician records the meter reading on
the side of the tank which tells how much volume of fluid there
is in the tank. Most likely, these volume readings are what level
of data?

H A. ratio
BApp B. interval
C. ordinal
D. nominal

C 79. Most evening news weather reports in the United States still use
Fahrenheit temperature readings to convey the warmth of the air
in various locations across the country. These Fahrenheit
temperature readings would most likely be categorized as what
level of data?

M A. ordinal
App B. ratio
C. interval
D. nominal
 Chapter1:IntroductiontoStatistics 25
D 80. Suppose you want to monitor the success or failure of a day
trader in the stock market. To do this, you assume that the
trader starts the day with zero earnings. At the end of the day
you determine how many dollars the trader or lost at the end of
the day. These dollar measurements are most likely which level
of data?

M A. unit
BApp B. nominal
C. ordinal
D. interval

A 81. At the Olympics, the first three places in each event are awarded
a medal. The winner of an event is awarded a 1 to represent
first place, the runner-up is awarded a 2, and the third place
finisher is awarded a 3. These numbers, 1, 2, and 3 are what
level of data measurement?

E A. ordinal
App B. nominal
C. ratio
D. interval

B 82. The highest level of data is _______.

E A. interval
Term B. ratio
C. nominal
D. ordinal

D 83. Which type of statistics require that the data be at least interval
or ratio level data?

M A. inferential statistics
Term B. descriptive statistics
C. nonparametric statistics
D. parametric statistics
B 84. Nominal and ordinal data are sometimes classified as _______.

H A. metric data
Term B. nonmetric data
C. descriptive data
D. inferential data
26 TestBank
D 85. Which of the levels of data measurement have the highest
usage potential? That is, if you have this level of data, you can
analyze it in more ways than with other levels of data?

E A. nominal
Term B. ordinal
C. interval
D. ratio

C 86. Moody's Investor's Service uses nine ratings of corporate bonds

to assist potential investors assess their risk.

Meaning
Best quality
High quality
Higher medium quality
Lower medium quality
Possess speculative elements
Lack characteristics of desirable
investment
Poor standing
Speculative in a high degree
Extremely poor prospects
The level of data measurement in Moody's bond ratings is
______________.

M A. ratio
BApp B. interval
C. ordinal
D. nominal
 Chapter1:IntroductiontoStatistics 27
B 87. Standard & Poor's Corporation uses nine ratings of corporate
bonds to assist potential investors assess their risk.

Meaning
AAA Highest grade
AA High grade
A Upper medium quality
BBB Medium grade
BB Lower Medium grade
B Speculative
CCC Outright speculations
CC Outright speculations
C Income bonds on which no interest is being paid
DDD In default, with rating indicating relative salvage
value
DD In default, with rating indicating relative salvage
value
D In default, with rating indicating relative salvage
value
The level of data measurement in Standard & Poor's bond
ratings is ______________.

M A. ratio
BApp B. ordinal
C. interval
D. nominal

D 88. Mac User's magazine rates products for the Apple Macintosh on
a scale from one mouse to five mice. One mouse indicates low
value/performance. Five mice indicate highest
value/performance.

M A. nominal
App B. interval
C. ratio
D. ordinal
28 TestBank
D 89. During a strategy planning session, the executives of Plano
Power Plants, Inc. identified thirty-one significant threats to the
future health of the corporation. Toward the end of the session,
Paul Pearson, a management consultant, asked the executives to
rate each threat on a scale of M to MMMMM. The level of
data measurement in Paul's threat rating is ______________.

M A. nominal
BApp B. interval
C. ratio
D. ordinal

A 90. The RSACi system uses five levels (0, 1, 2, 3, and 4) to provide consumers with
information about the level of sex, nudity, violence, offensive language (vulgar or
hate-motivated) in Web sites. A level 4 site may have crude,
vulgar language, or extreme hate speech; while a level 0 site
would not have even the mildest expletives. The level of data
measurement in RSACi rating system is ______.

M A. ordinal
BApp B. interval
C. ratio
D. nominal

B 91. The ranking of a company in the Fortune 500 is an example of ______ level of
data measurement.

M A. ratio
BApp B. ordinal
C. categorical
D. nominal

D 92. A company's Federal Tax I.D. is an example of ______ level of data measurement.

M A. ratio
BApp B. ordinal
C. rank order
D. nominal

A 93. The United States trade balance is an example of ______ level of data
measurement.

M A. ratio
BApp B. ordinal
C. rank order
 Chapter1:IntroductiontoStatistics 29
D. nominal

D 94. The telephone area code of clients in the United States is an example of ______
level of data measurement.

M A. ratio
BApp B. ordinal
C. rank order
D. nominal

A 95. A corporation's Price/Earrings ratio (P/E) is calculated by dividing its current

earnings per share into current market price per share. P/E is an example of
______ level of data measurement.

M A. ratio
BApp B. interval
C. rank order
D. nominal

A 96. Per capita income for a geographic region is calculated by the number of people
residing in the region into the total personal income of all persons residing in the
region. Per capita income is an example of ______ level of data measurement.

M A. ratio
BApp B. ordinal
C. interval
D. nominal

B 97. Classifying households as low-income, middle-income, or high-income is an

example of ______ level of data measurement.

M A. nominal
BApp B. ordinal
C. ratio
D. interval

C 98. Which of the following symbols is used to represent a population

parameter?

M A.
Term B. @
C. &
D.
30 TestBank