Chapter 1. A Preview of
Business Statistics
Test Bank
TRUE/FALSE
1. True or False
Regardless of your eventual career destination, whether it is
... [Show More] accounting or
marketing, finance or human resource management, you will find statistics
relevant to your field.
ANS: T PTS: 1 OBJ: Section 1.1
2. True or False
Business statistics can be described as the collection, summarization,
analysis,and reporting of numerical findings relative to a business decision or
situation.
ANS: T PTS: 1 OBJ: Section 1.1
3. True or False
The sole purpose of the U.S. Census Bureau is to simply count how many people
live in the United States.
ANS: F PTS: 1 OBJ: Section 1.2
4. True or False
ATP singles rankings for tennis players rank Rafael Nadal as 2 and Roger Federer
as 1. This is an example of an interval scale.
ANS: F PTS: 1 OBJ: Section 1.4
5. True or False
Quantitative variables usually represent membership in groups or categories.
ANS: F PTS: 1 OBJ: Section 1.4
6. True or False
In inferential statistics, we simply summarize and describe the data we’ve
collected.
ANS: F PTS: 1 OBJ: Section 1.3
7. True or False
The population is sometimes referred to as the universe and is the entire set of
people or objects of interest.
ANS: T PTS: 1 OBJ: Section 1.3
8. True or False
Prior to making decisions, companies often collect information through a series
of steps called the research process.
ANS: T PTS: 1 OBJ: Section 1.5
9. True or False
Improperly used, statistics can become an effective weapon with which to
persuade or manipulate others into beliefs or behaviors that we would like them
to adopt.
ANS: T PTS: 1 OBJ: Section 1.6
10. True or False
Unlike many other pursuits, improper actions in business statistics can
sometimes work in your favor.
ANS: T PTS: 1 OBJ: Section 1.6
11. True or False
In the nominal measurement scale numbers represent “greater than” or “less
than” measurements, such as rankings or preferences.
ANS: F PTS: 1 OBJ: Section 1.4
12. True or False
Stating that Wal-Mart’s sales increased 6.2% this quarter when compared to last
quarter is an example of descriptive statistics.
ANS: T PTS: 1 OBJ: Section 1.3
13. True or False
The sample statistic is a characteristic of the sample that the population
parameter attempts to estimate.
ANS: F PTS: 1 OBJ: Section 1.7
14. True or False
Six classmates told you their scores on the last statistics exam. Based on this
information, you conclude that the average exam score for the entire class was
82. This is an example of descriptive statistics.
ANS: F PTS: 1 OBJ: Section 1.3
MULTIPLE CHOICE
1. Which of the following statements involve descriptive statistics as opposed to
inferential statistics?
a. The Alcohol, Tobacco and Firearms Department reported that Houston had
1,791 registered gun dealers in 1997.
b. Based on a survey of 400 magazine readers, the magazine reports that 45%
of its readers prefer double column articles.
c. The FAA samples 500 traffic controllers in order to estimate the percent
retiring due to job stress related illness.
d. Based on a sample of 300 professional tennis players, a tennis magazine
reported that 25% of the parents of all professional tennis players did not play
tennis.
e. The admission’s office in a southern university samples 200 college students
in business in order to estimate the percentage of business majors who prefer
accounting to economics.
ANS: A PTS: 1 OBJ: Section 1.3
2. Which of the following statements involve inferential statistics as opposed to
descriptive statistics?
a. A total of 4,785 people voted for Mike Johnson in a local election.
b. The FAA reported there were 200 near misses among airplanes last year.
c. A class of fifty statistics students earned an average grade of 75.5.
d. The city business office reported 40 building permits for new single-family
housing units.
e. Based on a sample of 500 subscribers, a local cable system estimates that
forty percent of its subscribers watch a premium channel at least once per day.
ANS: E PTS: 1 OBJ: Section 1.3
3. Which of the following sample statistics is a measure of spread (dispersion)?
a. Sample mean
b. Sample standard deviation
c. Sample median
d. Sample proportion
e. Sample mode
ANS: B PTS: 1 OBJ: Section 1.3
4. A summary measure that is computed using the entire population is called:
a. a parameter
b. a statistic
c. a sample
d. inferential statistics
ANS: A PTS: 1 OBJ: Section 1.3
5. The difference between the highest and lowest values in the sample is known
as the sample:
a. mean
b. median
c. range
d. proportion
ANS: C PTS: 1 OBJ: Section 1.3
6. A summary measure that is computed from a sample to describe a
characteristic of the population is called:
a. a parameter
b. a statistic
c. a population
d. inferential statistics
ANS: B PTS: 1 OBJ: Section 1.3
7. When data are collected in a statistical study for only a portion or subset of all
elements of interest we are using a:
a. sample
b. parameter
c. statistic
d. population
ANS: A PTS: 1 OBJ: Section 1.3
8. Which of the following is not the goal of descriptive statistics?
a. Summarizing data
b. Displaying aspects of the collected data
c. Reporting numerical findings
d. Estimating characteristics of the population
ANS: D PTS: 1 OBJ: Section 1.3
9. Which of the following is most likely a continuous quantitative variable?
a. The number of gallons of paint purchased.
b. The number of quarts of milk purchased.
c. The population of Egypt.
d. The number of miles of interstate highways.
e. The number of times you sharpen your pencil working statistics problems.
ANS: D PTS: 1 OBJ: Section 1.4
10. The statistic that describes the midpoint of the data which has just as many
values above it as below it is known as the sample:
a. mean
b. median
c. mode
d. range
e. standard deviation
ANS: B PTS: 1 OBJ: Section 1.3 [Show Less]