QuestionBank
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) True or False Measurement error can become an ethical issue when a survey sponsor chooses leading questions that guide the responses in a particular direction. 1) _______
2) True or False Faculty rank (professor to lecturer) is an example of discrete numerical data. 2) _______
3) True or False The coefficient of variation is expressed as a percentage. 3) _______
4) True or False When you work with many variables, you must be mindful of the limits of the information technology as well as the limits of the ability of your readers to perceive and comprehend your results. 4) _______
5) True or False A population is the totality of items or things under consideration. 5) _______
6) True or False The geometric mean is a measure of variation or dispersion in a set of data. 6) _______
7) True or False Sampling error becomes an ethical issue if the findings are purposely presented without reference to sample size and margin of error so that the sponsor can promote a viewpoint that might otherwise be truly insignificant. 7) _______
8) True or False If the data set is approximately bellshaped, the empirical rule will more accurately reflect the greater concentration of data close to the mean as compared to the Chebyshev rule. 8) _______
9) True or False Given below is the scatter plot of the number of employees and the total revenue (millions$) of 20 U.S. companies. Companies that have higher numbers of employees appear to also have higher total revenue.
9) _______
10) True or False You can compute any of the numerical descriptive statistics for the variables of the new worksheet that a drilldown in a PivotTable creates. 10) ______
11) True or False Some business analytics involve starting with many variables and are then followed by filtering the data by exploring specific combinations of categorical values or numerical range. 11) ______
12) True or False The amount of coffee consumed by an individual in a day is an example of a discrete numerical variable. 12) ______
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
13) A summary measure that is computed to describe a characteristic from only a sample of the population is called 13) ______
A) a summary table. B) a statistic.
C) a parameter. D) an ordered array.
14) Which of the following is a discrete quantitative (numerical) variable? 14) ______
A) the number of employees of an insurance company
B) the Dow Jones Industrial average
C) the distance you drove yesterday
D) the volume of water released from a dam
15) Which of the following statements about the median is not true? 15) ______
A) It is equal to the mode in bellshaped "normal" distributions.
B) It is more affected by extreme values than the arithmetic mean.
C) It is equal to Q_{2}.
D) It is a measure of central tendency.
16) In perfectly symmetrical distributions, which of the following is NOT a correct statement? 16) ______
A) The distance from Q_{1} to Q_{2} equals the distance from Q_{2} to Q_{3}.
B) The distance from Q_{1} to Q_{3} is half of the distance from the smallest to the largest observation.
C) The distance from the smallest observation to Q_{2} is the same as the distance from Q_{2} to the largest observation.
D) The distance from the smallest observation to Q_{1} is the same as the distance from Q_{3} to the largest observation.
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a Bluray player made by the company over the past 12 months are satisfied with their products.
17) The possible responses to the question "How many Bluray players made by other manufacturers have you used?" result in 17) ______
A) a nominal scale variable. B) an ordinal scale variable.
C) an interval scale variable. D) a ratio scale variable.
18) In a perfectly symmetrical bellshaped "normal" distribution, 18) ______
A) the arithmetic mean equals the mode. B) the arithmetic mean equals the median.
C) the median equals the mode. D) All of the above.
19) A summary measure that is computed to describe a characteristic from only a sample of the population is called 19) ______
A) a parameter. B) a summary table.
C) an ordered array. D) a statistic.
20) Which of the following is most likely a parameter as opposed to a statistic? 20) ______
A) The average score of the first five students completing an assignment.
B) The average height of people randomly selected from a database.
C) The proportion of trucks stopped yesterday that were cited for bad brakes.
D) The proportion of females registered to vote in a county.
21) The chancellor of a major university was concerned about alcohol abuse on her campus and wanted to find out the proportion of students at her university who visited campus bars on the weekend before the final exam week. Her assistant took a random sample of 250 students and computed the portion of students in the sample who visited campus bars on the weekend before the final exam. The portion of all students at her university who visited campus bars on the weekend before the final exam week is an example of 21) ______
A) a parameter. B) a categorical variable.
C) a discrete variable. D) a statistic.
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a Bluray player made by the company over the past 12 months are satisfied with their products.
22) If there are 4 different brands of Bluray players made by the company, the best sampling strategy would be to use 22) ______
A) a systematic sample. B) a stratified sample.
C) a cluster sample. D) a simple random sample.
Every spring semester, the School of Business coordinates a luncheon with local business leaders for graduating seniors, their families, and friends. Corporate sponsorship pays for the lunches of each of the seniors, but students have to purchase tickets to cover the cost of lunches served to guests they bring with them. The following histogram represents the attendance at the senior luncheon, where X is the number of guests each graduating senior invited to the luncheon and f is the number of graduating seniors in each category.
23) How many graduating seniors attended the luncheon? 23) ______
A) 4 B) 388 C) 275 D) 152
24) A professor of economics at a small Texas university wanted to determine what year in school students were taking his tough economics course. Shown below is a pie chart of the results. What percentage of the class took the course prior to reaching their senior year?
24) ______
A) 54% B) 14% C) 86% D) 44%
The following are the duration in minutes of a sample of longdistance phone calls made within the continental United States reported by one longdistance carrier.
Time (in Minutes)

Relative
Frequency

0 but less than 5

0.37

5 but less than 10

0.22

10 but less than 15

0.15

15 but less than 20

0.10

20 but less than 25

0.07

25 but less than 30

0.07

30 or more

0.02

25) What is the width of each class? 25) ______
A) 5 minutes B) 100% C) 2% D) 1 minute
26) If 1,000 calls were randomly sampled, how many calls lasted under 10 minutes? 26) ______
A) 410 B) 220 C) 590 D) 370
27) Retailers are always interested in determining why a customer selected their store to make a purchase. A sporting goods retailer conducted a customer survey to determine why its customers shopped at the store. The results are shown in the bar chart below. What proportion of the customers responded that they shopped at the store because of the merchandise or the convenience?
27) ______
A) 85% B) 50% C) 65% D) 35%
28) A type of vertical bar chart in which the categories are plotted in the descending rank order of the magnitude of their frequencies is called a 28) ______
A) contingency table. B) stemandleaf display.
C) Pareto chart. D) pie chart.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
The ordered array below resulted from selecting a sample of 25 batches of 500 computer chips and determining how many in each batch were defective.
Defects
1

2

4

4

5

5

6

7

9

9

12

12

15

17

20

21

23

23

25

26

27

27

28

29

29


29) Construct a cumulative percentage distribution for the defects data if the corresponding frequency distribution uses "0 but less than 5" as the first class.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
The time period from 2009 to 2012 saw a great deal of volatility in the value of stocks. The data in the following table represent the total rate of return of our companies from 2009 to 2012.
Year

Company A

Company B

Company C

Company D

2012

25.30

26.40

45.40

29.40

2011

15.01

22.10

21.58

20.90

2010

5.44

11.90

1.03

10.97

2009

6.20

9.10

3.02

10.89

30) Calculate the geometric mean rate of return per year for Company A. 30) _____________
The following table represents the assets in billions of dollars of the five largest bond funds.
Bond Fund

Assets (Billions $)

PIMCO Total Return Fund

246

Vanguard Total Bond Market Index Fund

110

Templeton Global Bond Fund

57

Vanguard Total Bond Market Index Fund II

56

Vanguard InflationProtected Securities

43

31) What is the mean for this population of the five largest bond funds? 31) _____________
32) What are the variance and standard deviation for this population? 32) _____________
Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over 10 weeks.
Dow Jones

10,421

10,110

9,862

10,475

9,920

10,592

11,213

10,933

11,134

10,316

S&P 500

1,379

1,356

1,343

1,410

1,389

1,463

1,529

1,499

1,516

1,355

33) What is the sample covariance between the DJIA and the S&P 500 index? 33) _____________
1) TRUE
2) FALSE
3) TRUE
4) TRUE
5) TRUE
6) FALSE
7) TRUE
8) TRUE
9) TRUE
10) TRUE
11) TRUE
12) FALSE
13) B
14) A
15) B
16) B
17) D
18) D
19) D
20) D
21) A
22) B
23) C
24) C
25) A
26) C
27) C
28) C
29)
Defects

CumPct

0

0

5

16

10

40

15

48

20

56

25

72

30

100

30) 1.42
31) $102.4 billions
32) 5,684.24 squared billion dollars, $75.39 billions, respectively
33) 31594.7333
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