TEST BANK for Applied Statistics in Business and Economics 6e (Indian Edition) David Doane, Lori Sew by digitaldownload87

Applied Statistics in Business and Economics, 6e (Doane) Chapter 1 Overview of Statistics 1) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. Answer: TRUE Explanation: This is one of many good definitions of statistics. Difficulty: 1 Easy Topic: 01.01 What Is Statistics? Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2) Inferential statistics refers to generalizing from a sample to a population, estimating unknown parameters, drawing conclusions, and making decisions. Answer: TRUE Explanation: We can use statistics either to describe data or to infer something about a population. Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3) Descriptive statistics refers to summarizing data rather than generalizing about the population. Answer: TRUE Explanation: When we do not infer, we are only describing the available sample data. Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

4) Estimating parameters and testing hypotheses are important aspects of descriptive statistics. Answer: FALSE Explanation: When we generalize to a population, we are using inferential statistics. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 5) Inconsistent treatment of data by a researcher is a symptom of poor survey or research design. Answer: FALSE Explanation: Good survey data can still be misused or misinterpreted. Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6) Empirical data are collected through observations and/or experiments. Answer: TRUE Explanation: Empirical data are contrasted with a priori estimates (e.g., expecting 10 heads in 20 coin flips). Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 7) Business intelligence refers to collecting, storing, accessing, and analyzing data on the company's operations in order to make better business decisions. Answer: TRUE Explanation: See Wikipedia for similar definitions of business intelligence. Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8) When a statistician omits data contrary to her findings in a study, she is justified as long as the sample supports her objective. Answer: FALSE Explanation: We do not omit data unless it is proven to be an error. Difficulty: 2 Medium Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 9) A strong correlation between A and B would imply that B is caused by A. Answer: FALSE Explanation: Temporal sequence does not prove causation. Difficulty: 1 Easy Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10) The post hoc fallacy says that when B follows A then B is caused by A. Answer: TRUE Explanation: Temporal sequence does not prove causation. Difficulty: 1 Easy Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 11) A statistical test may be significant yet have no practical importance. Answer: TRUE Explanation: Large samples sometimes reveal tiny effects that may not matter very much. Difficulty: 1 Easy Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

12) Valid statistical inferences cannot be made when sample sizes are small. Answer: FALSE Explanation: Small samples may be all that we have, and statistics does have rules for them. Difficulty: 2 Medium Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 13) Statistics is an essential part of critical thinking because it allows us to transform the empirical evidence from a sample so it will agree with our preferred conclusions. Answer: FALSE Explanation: Ethical analysts challenge their beliefs with data rather than forcing data to fit their beliefs. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 14) Statistical challenges include imperfect data, practical constraints, and ethical dilemmas. Answer: TRUE Explanation: The list is longer, but these three are big challenges. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 15) A business data analyst needs a Ph.D. in statistics. Answer: FALSE Explanation: Every business person does some statistics. Difficulty: 1 Easy Topic: 01.02 Why Study Statistics? Learning Objective: 01-02 List reasons for a business student to study statistics. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 4 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

16) The science of statistics tells us whether the sample evidence is convincing. Answer: TRUE Explanation: There are clear scientific rules for statistical inference. Difficulty: 1 Easy Topic: 01.01 What Is Statistics? Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 17) Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links. Answer: TRUE Explanation: These are among many other pitfalls. Difficulty: 1 Easy Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 18) In business communication, a table of numbers is preferred to a graph because it is more able to convey meaning. Answer: FALSE Explanation: Although tables can show exact numbers, a good graph may be more helpful. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-03 Explain the uses of statistics in business. Bloom's: Understand AACSB: Communication Accessibility: Keyboard Navigation 19) Statistical data analysis can often distinguish between real versus perceived ethical issues. Answer: TRUE Explanation: Proper framing of a question may reveal that there is no real ethical issue. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 5 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

20) Excel has limited use in business because advanced statistical software is widely available. Answer: FALSE Explanation: Small businesses may lack advanced software (and the training to use it). Difficulty: 1 Easy Topic: 01.01 What Is Statistics? Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Understand AACSB: Technology Accessibility: Keyboard Navigation 21) Statistics helps surmount language barriers to solve problems in multinational businesses. Answer: TRUE Explanation: Statistics is part of the international language of science. Difficulty: 1 Easy Topic: 01.02 Why Study Statistics? Learning Objective: 01-02 List reasons for a business student to study statistics. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 22) Statistics can help you handle either too little or too much information. Answer: TRUE Explanation: Statistical tasks include sampling to obtain more information or finding meaning in large piles of data. Difficulty: 1 Easy Topic: 01.02 Why Study Statistics? Learning Objective: 01-02 List reasons for a business student to study statistics. Bloom's: Remember AACSB: Technology Accessibility: Keyboard Navigation 23) Predicting a presidential candidate's percentage of the statewide vote from a sample of 800 voters would be an example of inferential statistics. Answer: TRUE Explanation: Generalizing from a sample is an inference. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

24) Surveying electric vehicle owners would provide a representative random sample of Americans' views on global warming policies. Answer: FALSE Explanation: They are not a random sample of all Americans. Difficulty: 1 Easy Topic: 01.05 Critical Thinking Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation 25) An example of descriptive statistics would be reporting the percentage of students in your accounting class that attended the review session for the last exam. Answer: TRUE Explanation: As long as you do not generalize, it is a descriptive statistic. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 26) "Bob must be rich. He's a lawyer, and lawyers make lots of money." This statement best illustrates which fallacy? A) Using poor survey methods B) Confusing significance with importance C) Unconscious bias D) Generalizing from an average to an individual Answer: D Explanation: Many lawyers do not work for big firms. (Remember My Cousin Vinnie?) Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation

27) Which is not an ethical obligation of a statistician? A) To know and follow accepted procedures B) To ensure data integrity and accurate calculations C) To support client wishes in drawing conclusions from the data D) To acknowledge sources of financial support Answer: C Explanation: The analyst must sometimes present findings that the client does not like. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 28) Which of the following statements is correct? A) A parameter is a measure that is calculated from a sample. B) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. C) For day-to-day business data analysis, most firms rely on a large staff of expert statisticians. D) A statistical test result that is significant also has practical importance. Answer: B Explanation: A parameter is a population characteristic. Firms often lack professional statisticians on staff, so all business graduates need some degree of statistical training to handle day-to-day problems. Sometimes an effect, while not due to chance, is too small to matter. Difficulty: 2 Medium Topic: 01.01 What Is Statistics? Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 29) Which is least likely to be an application where statistics will be useful? A) Predicting whether an airfare is likely to rise or fall B) Designing the most desirable features for a ski pass C) Deciding whether offering Rice Krispies improves restaurant sales D) Choosing the wording of a corporate policy prohibiting smoking Answer: D Explanation: Policy wording is probably left up to writers, not statisticians. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-02 List reasons for a business student to study statistics. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 8 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

30) Because 25 percent of the students in my morning statistics class watch eight or more hours of television a week, I conclude that 25 percent of all students at the university watch eight or more hours of television a week. The most important logical weakness of this conclusion would be A) relying on a sample instead of surveying every student. B) using a sample that may not be representative of all students. C) failing to correct for unconscious interviewer bias. D) assuming cause and effect where none exists. Answer: B Explanation: Generalizing from a nonrandom sample is risky. The morning class may not be representative of all students. Difficulty: 3 Hard Topic: 01.05 Critical Thinking Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation 31) Which of the following is not a characteristic of an ideal statistician? A) Technically current (e.g., software) B) Communicates well (both written and oral) C) Advocates client's objectives D) Can deal with imperfect information Answer: C Explanation: There is an unattractive name for a consultant who always agrees with the client. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-03 Explain the uses of statistics in business. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation

32) Which of the following statements is not true? A) Statistics helps refine theories through ongoing hypothesis testing. B) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. C) Estimating parameters is an important aspect of descriptive statistics. D) Statistical challenges include imperfect data and practical constraints. Answer: C Explanation: Estimating a population parameter is an inference rather than a description. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 33) Which is not a practical constraint facing the business researcher or data analyst? A) Time and money are always limited. B) The world is no laboratory, so some experiments are impractical. C) Research on human subjects is fraught with danger and ethical issues. D) Survey respondents usually will tell the truth if well compensated. Answer: D Explanation: Paid respondents may try to tell you what you want to hear. Difficulty: 2 Medium Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 34) Which is not an essential characteristic of a good business data analyst? A) Effective writer B) Stays current on techniques C) Has a Ph.D. or master's degree in statistics D) Can deal with imperfect information Answer: C Explanation: No advanced degree is required for ordinary data analysis, which is why all business students study it. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-03 Explain the uses of statistics in business. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

35) An ethical statistical consultant would not always A) follow accepted statistical procedures. B) support management's desired conclusions. C) acknowledge sources of financial support. D) report limitations of the data. Answer: B Explanation: There is a nasty name for a consultant who always agrees with management. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 36) GM's experience with ignition switches suggests that A) statistics is not applicable to automotive manufacturing. B) limited data may still contain important clues. C) good engineers can eliminate all risks. D) ignition switches are inherently dangerous. Answer: B Explanation: When small samples are all that we have, we must study them carefully, especially when the consequences are extreme (e.g., car crashes). Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation 37) Which is not a goal of the ethical data analyst? A) To be an honest broker of data. B) To learn to downplay inconvenient data. C) To understand the firm's code of ethics (or help create one). D) To look for hidden agendas in data collection. Answer: B Explanation: We do not ignore data unless it is an actual error. Difficulty: 2 Medium Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation 11 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

38) Which of the following statements is not true? A) A statistic is a single measure (usually numerical) that is calculated from a sample. B) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. C) For day-to-day business data analysis, most firms rely on a large staff of expert statisticians. D) A statistical test may be significant yet have no practical importance. Answer: C Explanation: Few firms have staffs of statistics experts, so all of us need to know the basics. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 39) "Smoking is not harmful. My Aunt Harriet smoked, but lived to age 90." This best illustrates which fallacy? A) Unconscious bias B) Significance versus practical importance C) Post hoc reasoning D) Small sample generalization Answer: D Explanation: Individual cases sometimes deviate from the average. Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation

40) Which best illustrates the distinction between statistical significance and practical importance? A) "In 2016, 240 out of 400 statistics students at Oxnard Technical College sold their textbooks at the end of the semester, compared with 220 out of 330 students in 2015, a significant decrease." B) "Our new manufacturing technique has increased the life of the 80 GB USB AsimoDrive external hard disk significantly, from 240,000 hours to 250,000 hours." C) "In 50,000 births, the new vaccine reduced the incidence of infant mortality in Morrovia significantly from 14.2 deaths per 1000 births to 10.3 deaths per 1000 births." D) "The new Sky Penetrator IV business jet's cruising range has increased significantly from 3,975 miles to 4,000 miles." Answer: B Explanation: Consumers would not notice because 240,000 hours is approximately 27 years. Difficulty: 3 Hard Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Evaluate AACSB: Reflective Thinking Accessibility: Keyboard Navigation 41) "Circulation fell in the month after the new editor took over the newspaper Oxnard News Herald. The new editor should be fired." Which is not a serious fallacy in this conclusion? A) Generalizing from a small sample B) Applying post hoc reasoning C) Failing to identify causes D) Using a biased sample Answer: D Explanation: There is no apparent bias here, just a shaky inference from a small sample with no apparent causal link. Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Evaluate AACSB: Reflective Thinking Accessibility: Keyboard Navigation

42) An ethical data analyst would be least likely to A) check data for accuracy. B) cite his/her data sources and their limitations. C) acknowledge sources of financial support. D) rely on consultants for all calculations. Answer: D Explanation: When you farm out your calculations, you have lost control of your work. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 43) "Tom's SUV rolled over. SUVs are dangerous." This best illustrates which fallacy? A) Unconscious bias B) Significance versus practical importance C) Post hoc reasoning D) Small sample generalization Answer: D Explanation: One instance proves little. Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation 44) "Bob didn't wear his lucky T-shirt to class, so he failed his chemistry exam." This best illustrates which fallacy? A) Small sample generalization B) Poor survey methods C) Post hoc reasoning D) More than one of the above Answer: C Explanation: There is no credible causal link between these two events. Difficulty: 2 Medium Topic: 01.05 Critical Thinking Learning Objective: 01-05 List and explain common statistical pitfalls. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation 14 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

45) Which is not a reason for an average student to study statistics? A) Improve technical writing skills B) Gain information management skills C) Enhance technical literacy D) Learn stock market strategies Answer: D Explanation: Statistics helps improve writing and technical literacy, but to learn about the stock market, you should probably study finance. Difficulty: 1 Easy Topic: 01.02 Why Study Statistics? Learning Objective: 01-02 List reasons for a business student to study statistics. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 46) Which is not a likely area of application of statistics in business? A) Auditing supplier invoices for correct payment B) Questioning the executives' strategic decisions C) Looking for patterns in a large marketing database D) Making forecasts of several key product lines Answer: B Explanation: Business strategy may involve statistics, but not as much as the others listed here. Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-03 Explain the uses of statistics in business. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 47) Which is not a likely task of descriptive statistics? A) Summarizing a sample B) Describing data numerically C) Estimating unknown parameters D) Making visual displays of data Answer: C Explanation: Estimating a population parameter is an inference. Difficulty: 2 Medium Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 15 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

48) We would associate the term inferential statistics with which task? A) Making visual displays of data B) Estimating unknown parameters C) Describing a sample of data D) Tabulating a survey Answer: B Explanation: Estimating a population parameter is an inference. Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-01 Define statistics and explain some of its uses. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 49) A good data analyst A) removes data if so instructed by client. B) works alone to avoid team conflicts. C) communicates with numbers rather than with graphs. D) reports findings that may contradict client's ideas. Answer: D Explanation: Analysts study all the data, work on teams, and use charts to clarify all findings. Difficulty: 1 Easy Topic: 01.04 Statistical Challenges Learning Objective: 01-04 State the common challenges facing business professionals using statistics. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 50) Which is not an analytical method commonly used to improve business decisions? A) Descriptive analytics. B) Predictive analytics. C) Prescriptive analytics. D) Reactive analytics. Answer: D Explanation: See Minicase 1.1 Using Analytics to Improve Business. Difficulty: 1 Easy Topic: 01.03 Statistics in Business Learning Objective: 01-03 Explain the uses of statistics in business. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 16 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Applied Statistics in Business and Economics, 6e (Doane) Chapter 2 Data Collection 1) Categorical data have values that are described by words rather than numbers. Answer: TRUE Explanation: Categories are nominal data but may sometimes also be ranked (e.g., sophomore, junior, senior). Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2) Numerical data can be either discrete or continuous. Answer: TRUE Explanation: Numerical data can be counts (e.g., cars owned) or continuous measures (e.g., height). Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3) Categorical data are also referred to as nominal or qualitative data. Answer: TRUE Explanation: Categories are nominal data (nonnumerical), sometimes called qualitative data. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

4) The number of checks processed at a bank in a day is an example of categorical data. Answer: FALSE Explanation: Integers are numerical data. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 5) The number of planes per day that land at an airport is an example of discrete data. Answer: TRUE Explanation: Integers are discrete numerical data. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6) The weight of a bag of dog food is an example of discrete data. Answer: FALSE Explanation: Weight is measured on a continuous scale. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 7) In last year's annual report, Thompson Distributors indicated that it had 12 regional warehouses. This is an example of ordinal level data. Answer: FALSE Explanation: "Number of" is ratio data because a zero exists. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

8) Nominal data refer to data that can be ordered in a natural way. Answer: FALSE Explanation: Nominal (categorical) data would be called ordinal only if categories can be ranked. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 9) This year, Oxnard University produced two football All-Americans. This is an example of continuous data. Answer: FALSE Explanation: The "number of" anything is discrete. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10) The type of statistical test that we can perform is independent of the level of measurement of the variable of interest. Answer: FALSE Explanation: Some statistical operations are restricted unless you have ratio or interval data. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 11) Your weight recorded at your annual physical would not be ratio data, because you cannot have zero weight. Answer: FALSE Explanation: Zero is only a reference point, not necessarily an observable data value. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

12) The level of measurement for categorical data is nominal. Answer: TRUE Explanation: Categorical and nominal are equivalent terms. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 13) Temperature measured in degrees Fahrenheit is an example of interval data. Answer: TRUE Explanation: For temperature, scale distances are meaningful (20 to 25 is the same as 50 to 55 degrees), and 0 degrees Fahrenheit does not mean the absence of heat, so it is not a ratio measurement. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 14) The closing price of a stock is an example of ratio data. Answer: TRUE Explanation: True zero exists as a reference point, whether or not it is observed. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 15) The Statistical Abstract of the United States is a huge annual compendium of data for the United States, and it is available online free of charge. Answer: FALSE Explanation: In 2012 the U.S. Census Bureau ceased publishing this free compendium of data, but students can buy it for $199 from a private publisher. Difficulty: 1 Easy Topic: 02.05 Data Sources Learning Objective: 02-08 Find everyday print or electronic data sources. Bloom's: Remember AACSB: Technology 4 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Accessibility: Keyboard Navigation 16) Ordinal data can be treated as if it were nominal data but not vice versa. Answer: TRUE Explanation: You can always go back to a lower level of measurement (but not vice versa). Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 17) Responses on a seven-point Likert scale are usually treated as ratio data. Answer: FALSE Explanation: No true zero point exists on a Likert scale. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 18) Likert scales are especially important in opinion polls and marketing surveys. Answer: TRUE Explanation: Likert scales are used in all kinds of surveys. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19) Ordinal data are data that can be ranked based on some natural characteristic of the items. Answer: TRUE Explanation: For example, the eras Jurassic, Paleozoic, and Mesozoic can be ranked in time. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

20) Ratio data are distinguished from interval data by the presence of a zero reference point. Answer: TRUE Explanation: The true zero is a reference that need not be observable. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 21) It is better to attempt a census of a large population instead of relying on a sample. Answer: FALSE Explanation: A census may flounder on cost and time, while samples can be quick and accurate. Difficulty: 2 Medium Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 22) Judgment sampling and convenience sampling are nonrandom sampling techniques. Answer: TRUE Explanation: To be random, every item must have the same chance of being chosen. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 23) A problem with judgment sampling is that the sample may not reflect the population. Answer: TRUE Explanation: While better than mere convenience, judgment may still have flaws. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

24) When the population is large, a sample estimate is usually preferable to a census. Answer: TRUE Explanation: A census may flounder on cost and time, while samples can be quick and accurate. Difficulty: 1 Easy Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 25) Sampling error is avoidable by choosing the sample scientifically. Answer: FALSE Explanation: Sampling error is unavoidable, though it can be reduced by careful sampling. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 26) A sampling frame is used to identify the target population in a statistical study. Answer: TRUE Explanation: Only some portion of the population may be targeted (e.g., independent voters). Difficulty: 2 Medium Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 27) By taking a systematic sample, in which we select every 50th shopper arriving at a specific store, we are approximating a random sample of shoppers. Answer: TRUE Explanation: There is no bias if this method is implemented correctly. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

28) A worker collecting data from every other shopper who leaves a store is taking a simple random sample of customer opinion. Answer: FALSE Explanation: Not unless the target population is customers who shopped today (cf., all customers). Also, this is a systematic (not simple) random sample. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 29) Creating a list of people by taking the third name listed on every 10th page of the phone book is an example of convenience sampling. Answer: FALSE Explanation: This resembles two-stage cluster sampling combined with systematic sampling. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 30) Internet surveys posted on popular websites have no bias since anyone can reply. Answer: FALSE Explanation: Self-selection bias exists (respondents may be atypical). Difficulty: 2 Medium Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Understand AACSB: Technology Accessibility: Keyboard Navigation

31) Analysis of month-by-month changes in stock market prices during the most recent recession would require the use of time series data. Answer: TRUE Explanation: Data collected and recorded over time would be a time series. Difficulty: 2 Medium Topic: 02.01 Variables and Data Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 32) A cluster sample is a type of stratified sample that is based on geographical location. Answer: TRUE Explanation: An example would be sampling voters randomly within random zip codes. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 33) An advantage of a systematic sample is that no list of enumerated data items is required. Answer: TRUE Explanation: Systematic sampling works with a list (like random sampling) but also without one. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 34) Telephone surveys often have a low response rate and fail to reach the desired population. Answer: TRUE Explanation: Phone surveys are cheaper, but suffer from these weaknesses. Difficulty: 1 Easy Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 9 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

35) Mail surveys are attractive because of their high response rates. Answer: FALSE Explanation: Mail surveys have low response rates and invite self-selection bias. Difficulty: 1 Easy Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 36) A problem with convenience sampling is that the target population is not well-defined. Answer: TRUE Explanation: Convenience sampling is quick but not random, and the target population is unclear. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 37) If you randomly sample 50 students about their favorite places to eat, the data collected would be referred to as cross-sectional data. Answer: TRUE Explanation: Data for individuals would be a cross section (not a time series). Difficulty: 2 Medium Topic: 02.01 Variables and Data Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 38) The number of FedEx shipping centers in each of 50 cities would be ordinal level data. Answer: FALSE Explanation: The "number of" anything is ratio data because a true zero reference point exists. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 11 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

39) Internet surveys posted on popular websites suffer from nonresponse bias. Answer: TRUE Explanation: Nonresponse or self-selection bias is rampant in such surveys. Difficulty: 2 Medium Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 40) Different variables are usually shown as columns of a multivariate data set. Answer: TRUE Explanation: It is customary to use a column for each variable, while each row is an observation. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 41) Each row in a multivariate data matrix is an observation (e.g., an individual response). Answer: TRUE Explanation: It is customary to use a column for each variable, while each row is an observation. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 42) A bivariate data set has only two observations on a variable. Answer: FALSE Explanation: Bivariate refers to the number of variables, not the number of observations. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 12 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

43) Running times for 3,000 runners in a 5k race would be a multivariate data set. Answer: FALSE Explanation: Regardless of the number of observations, we have only one variable (running time). Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 44) Running times for 500 runners in a 5k race would be a univariate data set. Answer: TRUE Explanation: Regardless of the number of observations, we have only one variable (running time). Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 45) A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set. Answer: TRUE Explanation: We would have a data matrix with 50 rows and 3 columns. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 46) The daily closing price of Apple stock over the past month would be a time series. Answer: TRUE Explanation: Data collected over time is a time series. Difficulty: 2 Medium Topic: 02.01 Variables and Data Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 13 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

47) The number of words on 50 randomly chosen textbook pages would be cross-sectional data. Answer: TRUE Explanation: Data were not collected over time, so we have cross-sectional data. Difficulty: 2 Medium Topic: 02.01 Variables and Data Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 48) A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly Disagree" is intended to prevent "neutral" choices. Answer: TRUE Explanation: An even number of scale points (e.g., 4) forces the respondent to "lean" toward one end of the scale or the other. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 49) Private statistical databases (e.g., CRSP) are usually free. Answer: FALSE Explanation: Private research databases generally require a subscription (often expensive). Difficulty: 1 Easy Topic: 02.05 Data Sources Learning Objective: 02-08 Find everyday print or electronic data sources. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

50) An investment firm rates bonds for Aard Co Inc. as "B+," while bonds of Deva Corp. are rated "AA." Which level of measurement would be appropriate for such data? A) Nominal B) Ordinal C) Interval D) Ratio Answer: B Explanation: Ranks are clear, but interval would require assumed equal scale distances (doubtful). Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 51) Which variable is least likely to be regarded as ratio data? A) Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes) B) Weight of a randomly chosen student (pounds) C) Number of fatalities in a randomly chosen traffic disaster (persons) D) Student's evaluation of a professor's teaching (Likert scale) Answer: D Explanation: A Likert scale has no true zero. The other examples do. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 52) Which of the following is numerical data? A) Your gender B) The brand of cell phone you own C) Whether you have an American Express card D) The fuel economy (MPG) of your car Answer: D Explanation: Fuel economy is numerical. The others are categorical. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 15 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

53) Measurements from a sample are called A) statistics. B) inferences. C) parameters. D) variables. Answer: A Explanation: A measurement calculated from a sample is a statistic. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 54) Quantitative variables use which two levels of measurement? A) Ordinal and ratio B) Interval and ordinal C) Nominal and ordinal D) Interval and ratio Answer: D Explanation: Numerical (quantitative) data can be interval or ratio. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 55) Temperature in degrees Fahrenheit is an example of a(n) ________ variable. A) nominal B) ordinal C) interval D) ratio Answer: C Explanation: No true zero exists in temperature measurements except on the Kelvin scale. Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

56) Using a sample to make generalizations about an aspect of a population is called A) data mining. B) descriptive statistics. C) random sampling. D) statistical inference. Answer: D Explanation: Generalizing from a sample to a population is an inference. Difficulty: 1 Easy Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 57) Your telephone area code is an example of a(n) ________ variable. A) nominal B) ordinal C) interval D) ratio Answer: A Explanation: Area codes are not ranked, so they are merely nominal (i.e., categorical). Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 58) Which is least likely to be regarded as a ratio variable? A) A critic's rating of a restaurant on a 1 to 4 scale B) Automobile exhaust emission of nitrogen dioxide (milligrams per mile) C) Number of customer complaints per day at a cable TV company office D) Cost of an eBay purchase Answer: A Explanation: Ratings on a Likert scale have no meaningful zero. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

59) Automobile exhaust emission of CO2 (milligrams per mile) is ________ data. A) nominal B) ordinal C) interval D) ratio Answer: D Explanation: Meaningful zero emissions are possible (e.g., electric car) so ratio. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 60) Your rating of the food served at a local restaurant using a three-point scale of 0 = gross, 1 = decent, 2 = yummy is ________ data. A) nominal B) ordinal C) interval D) ratio Answer: B Explanation: Only rankings are implied (not equal scale distances). Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 61) The number of passengers "bumped" on a particular airline flight is ________ data. A) nominal B) ordinal C) interval D) ratio Answer: D Explanation: A true zero point exists (no passengers might be bumped). Difficulty: 1 Easy Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 18 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

62) Which should not be regarded as a continuous random variable? A) Tonnage carried by a randomly chosen oil tanker at sea B) Wind velocity at 7 o'clock this morning C) Number of personal fouls by the Miami Heat in a game D) Length of time to play a Wimbledon tennis match Answer: C Explanation: Counting things yields integer (discrete) data. Difficulty: 2 Medium Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 63) Which of the following is not true? A) Categorical data have values that are described by words rather than numbers. B) Categorical data are also referred to as nominal or qualitative data. C) The number of checks processed at a bank in a day is categorical data. D) Numerical data can be either discrete or continuous. Answer: C Explanation: The "number of" anything is a discrete numerical variable. Difficulty: 2 Medium Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 64) Which of the following is true? A) The type of charge card used by a customer (Visa, MasterCard, AmEx) is ordinal data. B) The duration (minutes) of a flight from Boston to Minneapolis is ratio data. C) The number of Nobel Prize–winning faculty at Oxnard University is continuous data. D) The number of regional warehouses owned by Jankord Industries is ordinal data. Answer: B Explanation: A true zero exists as a reference point (even if not observed), so ratios have meaning. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

65) Which statement is correct? A) Judgment sampling is preferred to systematic sampling. B) Sampling without replacement introduces bias in our estimates of parameters. C) Cluster sampling is useful when strata characteristics are unknown. D) Focus groups usually work best without a moderator. Answer: C Explanation: Review the characteristics of each sampling method. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 66) A Likert scale A) yields interval data if scale distances are equal. B) must have an odd number of scale points. C) must have a verbal label on each scale point. D) is rarely used in marketing surveys. Answer: A Explanation: Marketers use Likert scales and try to make scales with meaningful intervals. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 67) Which is most nearly correct regarding sampling error? A) It can be eliminated by increasing the sample size. B) It cannot be eliminated by any statistical sampling method. C) It can be eliminated by using Excel's =RANDBETWEEN() function. D) It can be eliminated by utilizing systematic random sampling. Answer: B Explanation: Sampling involves error, though it can be minimized by proper methodology. Difficulty: 2 Medium Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

68) Which statement is false? A) Random dialing phone surveys have low response and are poorly targeted. B) Selection bias means that many respondents dislike the interviewer. C) Simple random sampling requires a list of the population. D) Web surveys are economical but suffer from nonresponse bias. Answer: B Explanation: Selection bias occurs when respondents are atypical. Difficulty: 2 Medium Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 69) Judgment sampling is sometimes preferred over random sampling, for example, when A) the desired sample size is much larger than the population. B) the sampling budget is large and the population is conveniently located. C) time is short and the sampling budget is limited. D) the population is readily accessible and sampling is nondestructive. Answer: C Explanation: Judgment sampling can save time and may be better than mere convenience. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 70) An advantage of convenience samples is that A) the required sample size is easier to calculate. B) sampling error can be reduced. C) computation of statistics is easier. D) they are often quicker and cheaper. Answer: D Explanation: Convenience samples are quick, with a possible trade-off of accuracy. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

71) Before deciding whether to assess heavy fines against noisy airlines, which sampling method would the Federal Aviation Administration probably use to measure the peak noise from departing jets as measured by a ground-level observer at a point one mile from the end of the departure runway? A) Radio survey of pilots. B) Simple random sample. C) Judgment sample. D) Stratified sample. Answer: D Explanation: From the cockpit, pilots can't assess external noise levels, so a radio survey of pilots is not useful. Measurements must be taken from the ground. No list is available for the unpredictable mix of departing flights, so we cannot use a simple random sample. A judgment sample would not provide an objective basis for assessing fines. A reasonable option would be for ground observers to record the aircraft size, type, and carrier (airline) for each departing flight for a week and use this information to construct a stratified sample. Difficulty: 3 Hard Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 72) Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by picking every student who was wearing red that day. Which kind of sample is this? A) Simple random sample B) Judgment sample C) Systematic sample D) Convenience sample Answer: D Explanation: It may be quick but no judgment is involved and may not be representative of all students. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

73) Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every 15th folder. Which sampling method is this? A) Simple random sample B) Systematic sample C) Stratified sample D) Cluster sample Answer: B Explanation: This is a classic systematic sample from an accessible but unlisted population. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 74) Which of the following is not a likely reason for sampling? A) The destructive nature of certain tests B) The physical impossibility of checking all the items in the population C) Prohibitive cost of studying the entire population D) The expense of obtaining random numbers Answer: D Explanation: Random numbers are cheap (e.g., Excel's =RANDBETWEEN function). Difficulty: 2 Medium Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 75) Comparing a census of a large population to a sample drawn from it, we expect that the A) sample is usually a more practical method of obtaining the desired information. B) accuracy of the observations in the census is surely higher than in the sample. C) sample must be a large fraction of the population to be accurate. Answer: A Explanation: Census is often impractical, while samples can be extremely accurate. Difficulty: 2 Medium Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

76) A stratified sample is sometimes recommended when A) the sample size is very large. B) the population is small compared to the sample. C) distinguishable strata can be identified in the populations. D) the population is spread out geographically. Answer: C Explanation: Identifiable strata such as gender, ethnicity, or region can be used. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 77) A random sample is one in which the A) probability that an item is selected for the sample is the same for all population items. B) population items are selected haphazardly by experienced workers. C) items to be selected from the population are specified based on expert judgment. D) probability of selecting a population item depends on the item's data value. Answer: A Explanation: Each item must have the same chance of being picked if the sample is random. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 78) An advantage of convenience samples over random samples is that A) they are easy to analyze. B) it is easier to determine the sample size needed. C) it is easier to calculate the sampling errors involved. D) data collection cost is reduced. Answer: D Explanation: Convenience samples are often used because they are quick (but maybe not accurate). Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

79) To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its customers by age, gender, and location. Which is an advantage of this type of sampling, as opposed to other sampling methods? A) It is less intrusive on customers' privacy. B) It does not require random numbers. C) It gives faster results. D) It can give more accurate results. Answer: D Explanation: Stratified sampling can yield more complete and accurate information. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Analyze AACSB: Diversity Accessibility: Keyboard Navigation 80) An accounting professor wishing to know how many MBA students would take a summer elective in international accounting did a survey of the class she was teaching. Which kind of sample is this? A) Simple random sample B) Cluster sample C) Systematic sample D) Convenience sample Answer: D Explanation: She may bias the estimate because only accounting students were surveyed. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

81) A binary variable (also called a dichotomous variable or dummy variable) has A) only two possible values. B) continuous scale values. C) rounded data values. D) ordinal or interval values. Answer: A Explanation: Binary variables are used in every field of business to code qualitative (nominal) data. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 82) A population has groups that have a small amount of variation within them, but large variation among or between the groups themselves. The proper sampling technique is A) simple random. B) stratified. C) cluster. D) judgment. Answer: B Explanation: Identifiable strata call for stratified sampling if you can afford the extra time and cost. Difficulty: 3 Hard Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

83) A manager chose two people from her team of eight to give an oral presentation because she felt they were representative of the whole team's views. What sampling technique did she use in choosing these two people? A) Convenience B) Simple random C) Judgment D) Cluster Answer: C Explanation: Expert judgment may be better than just pointing a finger (we hope). Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 84) Sampling bias can best be reduced by A) using appropriate data coding. B) having a computer tabulate the results. C) utilizing random sampling. D) taking a judgment sample. Answer: C Explanation: Sampling error cannot be eliminated, but sampling bias can be avoided. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 85) A sampling technique used when groups are defined by their geographical location is A) cluster sampling. B) convenience sampling. C) judgment sampling. D) random sampling. Answer: A Explanation: Strata based on location can be targeted through cluster sampling. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 27 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

86) If we choose 500 random numbers using Excel's function =RANDBETWEEN(1,99), we would most likely find that A) numbers near the mean (50) would tend to occur more frequently. B) numbers near 1 and 99 would tend to occur less frequently. C) some numbers would occur more than once. D) the numbers would have a clear pattern. Answer: C Explanation: On average, we would expect each number to occur around five times. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 87) A problem with nonrandom sampling is that A) larger samples need to be taken to reduce the sampling error inherent in this approach. B) not every item in the population has the same chance of being selected, as it should. C) it is usually more expensive than random sampling. D) it generally provides lower response rates than random sampling. Answer: B Explanation: Only random sampling gives every item the same chance to be picked. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 88) From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is an example of A) simple random sampling. B) stratified random sampling. C) cluster sampling. D) judgment sampling. Answer: C Explanation: Two-stage cluster sampling is being used (a special form of stratification). Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 28 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

89) Which of the following is a correct statement? A) Choosing the third person listed on every fifth page of the phone book is stratified sampling. B) An advantage of a systematic sample is that no list of enumerated data items is required. C) Convenience sampling is used to study shoppers in convenience stores. D) Judgment sampling is an example of true random sampling. Answer: B Explanation: Review the sampling methods and their characteristics. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 90) Which of the following is false? A) Sampling error is the difference between the true parameter and the sample estimate. B) Sampling error is a result of unavoidable random variation in a sample. C) A sampling frame is chosen from the target population in a statistical study. D) The target population must first be defined by a full list or data file of all individuals. Answer: D Explanation: Review the terminology of sampling. Difficulty: 2 Medium Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 91) When we are choosing a random sample and we do not place chosen units back into the population, we are A) sampling with replacement. B) sampling without replacement. C) using a systematic sample. D) using a voluntary sample. Answer: B Explanation: In sampling without replacement the items chosen are not independent. Statistics formulas usually assume replacement to ensure unbiased estimates. Difficulty: 1 Easy Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 29 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

92) Which method is likely to be used by a journalism student who is casually surveying opinions of students about the university's cafeteria food for an article that she is writing? A) Simple random sample B) Systematic random sample C) Cluster sample D) Convenience sample Answer: D Explanation: Quick and easy may trump true random sampling for a busy journalist. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 93) Which of the following is false? A) Mail surveys are cheap but have low response rates. B) Coverage error is when respondents give untruthful answers. C) Focus groups are nonrandom but can probe issues more deeply. D) Surveys posted on popular websites suffer from selection bias. Answer: B Explanation: Coverage error is when you miss some segment of the target population. Difficulty: 2 Medium Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

94) Which is a time series variable? A) VISA balances of 30 students on December 31 of this year B) Net earnings reported by Xena Corp. for the last 10 quarters C) Dollar exchange rates yesterday against 10 other world currencies D) Titles of the top 10 movies in total revenue last week Answer: B Explanation: If x1, x2, . . ., xn do not refer to n time periods, it isn't a time series. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 95) An observation in a data set would refer to A) only a variable whose value is recorded by visual inspection. B) a data item whose value is numerical (as opposed to categorical). C) a single row that contains one or more observed variables. D) the values of all the variables in the entire data set. Answer: C Explanation: We usually put observations in rows on a spreadsheet, while each column is a variable. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 96) A multivariate data set contains A) more than two observations. B) more than two categorical variables. C) more than two variables. D) more than two levels of measurement. Answer: C Explanation: When you have more than two variables, it is multivariate data. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-01 Use basic terminology for describing data and samples. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 31 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

97) The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra hospital stay that occurs when heart surgery patients experience postoperative atrial fibrillation. They divide the United States into nine regions. In each region, hospitals are selected at random within each hospital size group (small, medium, large). In each hospital, heart surgery patients are sampled according to known percentages by age group (under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines which sampling methods? A) Systematic, simple random, and convenience B) Convenience, systematic, and judgment C) Cluster, stratified, and simple random D) Judgment, systematic, and simple random Answer: C Explanation: Identifiable strata were sampled, but also random sampling within strata and regional clusters was used. Difficulty: 3 Hard Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 98) Which statement is correct? A) Selecting every fifth shopper arriving at a store will approximate a random sample of shoppers. B) Selecting only shoppers who drive SUVs is a stratified sampling method. C) A census is preferable to a sample for most business problems. D) Stratified samples are usually cheaper than other methods. Answer: A Explanation: Done carefully, systematic sampling is close to random when there is no list. Difficulty: 2 Medium Topic: 02.04 Sampling Methods Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation

99) Which is a categorical variable? A) The brand of jeans you usually wear B) The price you paid for your last pair of jeans C) The distance to the store where you purchased your last pair of jeans D) The number of pairs of jeans that you own Answer: A Explanation: Categories have only names (e.g., Calvin Klein). Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 100) Which is a discrete variable? A) The time it takes to put on a pair of jeans B) The price you paid for your last pair of jeans C) The distance to the store where you purchased your last pair of jeans D) The number of pairs of jeans that you own Answer: D Explanation: The "number of" anything is discrete numerical data. Difficulty: 1 Easy Topic: 02.01 Variables and Data Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 101) A section of the population we have targeted for analysis is A) a statistic. B) a frame. C) a sample. D) a coven. Answer: B Explanation: We must define the segment we want to look at (e.g., independent voters). Difficulty: 1 Easy Topic: 02.03 Sampling Concepts Learning Objective: 02-06 Use the correct terminology for samples and populations. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

102) Which is not a time series variable? A) Closing checkbook balances of 30 students on December 31 of this year B) Net earnings reported by Xena Corp. for the last 10 quarters C) Dollar/euro exchange rates at 12 noon GMT for the last 30 days D) Movie attendance at a certain theater for each Saturday last year Answer: A Explanation: If x1, x2, . . ., xn do not refer to n time periods, it is not a time series. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 103) A good Likert scale may not have A) unequal distances between scale points. B) an odd number of scale points. C) a verbal label on each scale point. D) verbal anchors at its end points. Answer: A Explanation: Surveys try to create scales with meaningful intervals. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-02 Explain the difference between numerical and categorical data. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 104) A Likert scale with an odd number of scale points between "Strongly Agree" and "Strongly Disagree" A) cannot have equal scale distances. B) cannot have a neutral middle point. C) must have a verbal label on each scale point. D) is often used in marketing surveys. Answer: D Explanation: Likert scales should have arguably equal intervals. A middle neutral response is possible with an odd number of scale points (e.g., 5 or 7). Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 34 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

105) A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly Disagree" A) cannot have equal scale distances. B) is intended to prevent "neutral" choices. C) must have a verbal label on each scale point. D) is rarely used in surveys. Answer: B Explanation: Likert scales should have arguably equal intervals. An even number of scale points (e.g., 4) forces the respondent to "lean" toward one end of the scale or the other. Difficulty: 2 Medium Topic: 02.02 Level of Measurement Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 106) Which statement is correct? A) Analysts rarely consult business periodicals (e.g., Bloomberg Businessweek). B) Web searches (e.g., Google) often yield unverifiable data. C) Government data sources (e.g., www.bls.gov) are often costly. D) Private statistical databases (e.g., CRSP) are usually free. Answer: B Explanation: Periodicals are often up-to-date and readily available data sources. Web data may be unreliable, and searches may be directed toward obtaining payment for data. Private research databases generally require a subscription, while government data sources generally are free. Difficulty: 1 Easy Topic: 02.05 Data Sources Learning Objective: 02-08 Find everyday print or electronic data sources. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

107) Which statement is correct? A) Analysts avoid business periodicals (e.g., Bloomberg Businessweek). B) Web searches (e.g., Google) yield reliable and easily verified data. C) Government data sources (e.g., www.bls.gov) usually are free. D) Private statistical databases (e.g., CRSP) usually are free. Answer: C Explanation: Periodicals are often up-to-date and readily available data sources. Web data may be unreliable, and searches may be directed toward obtaining payment for data. Private research databases generally require a subscription, while government data sources generally are free. Difficulty: 1 Easy Topic: 02.05 Data Sources Learning Objective: 02-08 Find everyday print or electronic data sources. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 108) A valid survey is one that A) measures what the researcher wants to measure. B) has been approved by top management. C) is administered by a professional statistician. D) has a large number of questions. Answer: A Explanation: There is no need for a large number of questions, although the survey must be tested to be sure it measures what the researcher wants to know. Difficulty: 1 Easy Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

109) A reliable survey is one that A) is administered by trusted employees. B) has been approved by quality engineers. C) gives consistent measurements. D) has many easy questions. Answer: A Explanation: Over time and across groups of similar respondents, a reliable survey should give consistent results (within expected ranges of statistical variation). Difficulty: 1 Easy Topic: 02.06 Surveys Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Applied Statistics in Business and Economics, 6e (Doane) Chapter 3 Describing Data Visually 1) It is easier to read the data values on a 3D column chart than on a 2D column chart. Answer: FALSE Explanation: Height is harder to judge on a 3D chart. Difficulty: 1 Easy Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2) The column chart should be avoided if you are plotting time series data. Answer: FALSE Explanation: Line charts are more common, but column charts also work for a time series. Difficulty: 2 Medium Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3) The line chart is appropriate for categorical (qualitative) data. Answer: FALSE Explanation: Only numerical data can be plotted on a line chart. Difficulty: 1 Easy Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 4) The Pareto chart is used to display the "vital few" causes of problems. Answer: TRUE Explanation: Causes are displayed in a column or bar chart sorted in order of frequency. Difficulty: 1 Easy Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

5) Excel's pyramid chart is generally preferred to a plain 2D column chart. Answer: FALSE Explanation: Avoid novelty charts when a plain 2D bar chart will do. Difficulty: 1 Easy Topic: 03.09 Deceptive Graphs Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6) Excel's pyramid charts make it easier to read the data values. Answer: FALSE Explanation: Avoid novelty charts when a plain 2D column chart will do. Difficulty: 1 Easy Topic: 03.09 Deceptive Graphs Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 7) Dot plots are similar to histograms with many bins (classes). Answer: TRUE Explanation: Height of the dot stack is analogous to bar height. Difficulty: 2 Medium Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-01 Make a stem-and-leaf or dot plot. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 8) Compared to a dot plot, we lose some detail when we present data in a frequency distribution. Answer: TRUE Explanation: Individual data values are easier to see on a dot plot. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

9) Stacked dot plots are useful in understanding the association between two paired quantitative variables (X, Y). Answer: FALSE Explanation: You would prefer a scatter plot for X-Y data. Difficulty: 3 Hard Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-01 Make a stem-and-leaf or dot plot. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10) Log scales are common because most people are familiar with them. Answer: FALSE Explanation: Log scales seem to be harder for the average business person to interpret Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 11) Sturges' Rule should override judgment about the "right" number of histogram bins. Answer: FALSE Explanation: Sturges' Rule is only a starting point or guideline. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 12) Sturges' Rule is merely a suggestion, not an ironclad requirement. Answer: TRUE Explanation: Sturges' Rule is only a starting point or guideline. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

13) Excel's 3D pie charts are usually clearer than 2D pie charts. Answer: FALSE Explanation: Many people like 3D better, but it is harder to judge slice size. Difficulty: 1 Easy Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 14) A common error with pie charts is using too few "slices." Answer: FALSE Explanation: The opposite is true (too many slices are often seen). Difficulty: 2 Medium Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 15) A pie chart can generally be used instead of a bar chart. Answer: FALSE Explanation: No, a pie chart is specialized (only for parts of a whole). Difficulty: 2 Medium Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 16) A column chart can sometimes be used instead of a line chart for time series data. Answer: TRUE Explanation: Line charts and column charts may be used to display time series data. Difficulty: 2 Medium Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

17) Pie charts are attractive to statisticians, but are rarely used in business or general media. Answer: FALSE Explanation: Pie charts make it hard to judge data values precisely, but often are colorful. Difficulty: 1 Easy Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 18) Pie charts are useful in displaying frequencies that sum to a total. Answer: TRUE Explanation: That is exactly what pie charts are for (e.g., industry market shares). Difficulty: 1 Easy Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19) Dot plots may not reveal the shape of a distribution when the sample is small. Answer: TRUE Explanation: You need a fairly large sample size to assess shape on a dot plot. Difficulty: 1 Easy Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-01 Make a stem-and-leaf or dot plot. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 20) Scatter plots are used to visualize association in samples of paired data (X, Y). Answer: TRUE Explanation: That is exactly what a scatter plot is for. Difficulty: 1 Easy Topic: 03.07 Scatter Plots Learning Objective: 03-08 Make and interpret a scatter plot. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

21) The zero origin rule may be waived for column or line charts if the objective is merely to visualize relative change over time. Answer: FALSE Explanation: A nonzero origin is always potentially deceptive if we want to know relative size. Difficulty: 2 Medium Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 22) In a bimodal histogram, the two highest bars will have the same height. Answer: FALSE Explanation: Not necessarily, though they might be the same. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-04 Identify skewness, modal classes, and outliers in a histogram. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 23) A frequency distribution is a tabulation of n data values into classes called bins. Answer: TRUE Explanation: This is the definition of a frequency distribution. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 24) A dot plot would be useful in visualizing scores on an exam in a class of 30 students. Answer: TRUE Explanation: Because the sample is small and data values are discrete, a dot plot would be good. Difficulty: 2 Medium Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-01 Make a stem-and-leaf or dot plot. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

25) A frequency distribution usually has equal bin widths. Answer: TRUE Explanation: Unequal bins are possible, but rare (software default is equal bins). Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 26) Line charts are not used for cross-sectional data. Answer: TRUE Explanation: Line charts are for time series data. Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 27) A scatter plot is useful in visualizing trends over time. Answer: FALSE Explanation: Use a line chart to visualize trends. Difficulty: 1 Easy Topic: 03.07 Scatter Plots Learning Objective: 03-08 Make and interpret a scatter plot. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 28) A scatter plot requires two quantitative variables (i.e., not categorical data). Answer: TRUE Explanation: An X-Y plot makes no sense for nonnumerical data. Difficulty: 2 Medium Topic: 03.07 Scatter Plots Learning Objective: 03-08 Make and interpret a scatter plot. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

29) The number of bins in this histogram (caffeine content in mg/oz for 65 soft drinks) is consistent with Sturges' Rule.

Answer: FALSE Explanation: Sturges' Rule suggests k = 1 + 3.3 log (65) = 6.98, or about 7 bins. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

30) Because most data values are on the left, we would say that this dot plot (burglary rates per 100,000 persons in 350 U.S. cities) shows a distribution that is skewed to the left (negatively skewed).

Answer: FALSE Explanation: The long right tail suggests positive skewness. Difficulty: 2 Medium Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-04 Identify skewness, modal classes, and outliers in a histogram. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 31) It is possible to construct a histogram or frequency polygon with open-ended classes. Answer: FALSE Explanation: Without limits, we cannot mark bin limits on a graph. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 32) Except for the Y-axis scaling, a histogram will look the same if we use relative frequencies instead of raw frequencies (with the same bin limits). Answer: TRUE Explanation: Relative frequencies are just raw frequencies divided by the sample size. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 9 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

33) The ________ can be used to differentiate the "vital few" causes of quality problems from the "trivial many" causes of quality problems. A) histogram B) scatter plot C) pareto chart D) box plot Answer: C Explanation: A Pareto chart shows the causes in descending order of frequency. Difficulty: 1 Easy Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 34) Which is not a characteristic of a dot plot? A) Simplicity B) Legibility C) Wide bins D) Dot stacking Answer: C Explanation: In a simple dot plot, "bins" are really individual data values (not a range). If two dots appear at the same axis location, they must be stacked. Difficulty: 1 Easy Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-01 Make a stem-and-leaf or dot plot. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 35) Which display is most likely to reveal association between X and Y? A) Dot plot B) Scatter plot C) Histogram D) Pareto chart Answer: B Explanation: Scatter plots reveal the degree of covariance between X and Y. Difficulty: 1 Easy Topic: 03.07 Scatter Plots Learning Objective: 03-08 Make and interpret a scatter plot. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

36) Which criterion is least likely to be used in choosing bins (classes) in a frequency distribution? A) Following Sturges' Rule B) Selecting "nice" class (bin) limits C) Using aesthetic judgment D) Always starting at zero Answer: D Explanation: Bins can start at any value. Judgment is often used to select "nice" bins. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 37) Which of the following is true? A) Line charts are not used for cross-sectional data. B) Line charts are useful for visualizing categorical data. C) Pyramid charts are generally preferred instead of column charts. D) Pie charts can generally be used instead of bar charts. Answer: A Explanation: Line charts require numerical data over time (not categorical data). Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 38) Histograms generally do not reveal the A) exact data range. B) modal classes (bins). C) degree of skewness. D) relative frequencies. Answer: A Explanation: "Nice" bin limits may not end exactly at xmin and xmax. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-04 Identify skewness, modal classes, and outliers in a histogram. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 11 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

39) A column chart would be least suitable to display which data? A) Annual compensation of 500 company CEOs B) U.S. exports to its six largest trading partners C) Exxon-Mobil's quarterly sales for the last four years D) One-year CD interest rates paid by the eight largest U.S. banks Answer: A Explanation: With 500 data values, a column chart would reveal little. Make a histogram instead. Difficulty: 2 Medium Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 40) A line chart would not be suitable to display which data? A) U.S. oil imports from OPEC nations for the last 20 years B) Annual compensation of the top 50 CEOs C) Exxon-Mobil's quarterly sales data for the last five years D) Daily stock market closing prices of Microsoft for the past month Answer: B Explanation: Line charts are for time series data (not cross-sectional data). Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 41) Which is not a tip for effective column charts? A) Time usually goes on the horizontal axis. B) Column height should be proportional to the quantity displayed. C) Label data values at the top of each column unless graphing lots of data. D) The zero origin rule may be waived for financial reports. Answer: D Explanation: Especially in financial reports, the zero origin rule is vital. Difficulty: 2 Medium Topic: 03.05 Column and Bar Charts Learning Objective: 03-06 Make an effective column chart or bar chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

42) Which is not a tip for effective line charts? A) Line charts are better than bar charts to display cross-sectional data. B) Numerical labels are omitted on a line chart if there are many data values. C) Omit data markers (e.g., squares, triangles) when there are many data values. D) Thick lines make it harder to see exact data values. Answer: A Explanation: Line charts are for numerical time series data. Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 43) Which is a reason for using a log scale for time series data? A) It helps compare growth in time series of dissimilar magnitude. B) General business audiences find it easier to interpret a log scale. C) On a log scale, equal distances represent equal dollar amounts. D) The axis labels are usually easier to read in log units. Answer: A Explanation: While less familiar to some people, changing magnitude may necessitate a log scale. Difficulty: 2 Medium Topic: 03.03 Effective Excel Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 44) Which is a not a characteristic of pie charts? A) Pie charts can only convey a general idea of the data values. B) Pie charts are ineffective when they have too many slices. C) Exploded and 3D pie charts will allow more "slices." D) Pie chart data always represent parts of a whole (e.g., market share). Answer: C Explanation: Pie charts with too many slices are hard to read, regardless whether they are 2D or 3D. Difficulty: 1 Easy Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 14 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

45) Excel's pyramid charts A) are generally preferred to pie charts. B) should be avoided despite their visual appeal. C) are generally preferred to line charts. D) show trends more clearly than column charts. Answer: B Explanation: Avoid novelty charts in business presentations. They are fun but unclear. Difficulty: 2 Medium Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 46) Which is not a reason why pie charts are popular in business? A) They can convey a general idea of the data to a nontechnical audience. B) They can display major changes in parts of a whole (e.g., market share). C) They are more precise than line charts, despite their low visual impact. D) They can be labeled with data values to facilitate interpretation. Answer: C Explanation: Pie charts are attractive to display parts of a whole, but can be hard to read precisely despite their strong visual impact. Difficulty: 2 Medium Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 47) Which data would be suitable for a pie chart? A) Whirlpool Corporation's sales revenue for the last five years B) Oxnard University student category (undergraduate, masters, doctoral) C) Average SAT scores for entering freshmen at 10 major U.S. universities D) U.S. toy imports from China over the past decade Answer: B Explanation: Pie charts are only used to display parts of a whole (not time series data). Difficulty: 2 Medium Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

48) Which data would be suitable for a pie chart? A) Percent vote in the last election by party (Democrat, Republican, Other) B) Retail prices of six major brands of color laser printers C) Labor cost per vehicle for 10 major world automakers D) Prices paid by 10 students for their accounting textbooks Answer: A Explanation: Pie charts are only used to display parts of a whole. Difficulty: 2 Medium Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 49) Which data would be suitable for a pie chart? A) Average starting salary of MBA graduates from six ivy-league universities B) APR interest rates charged by the top five U.S. credit cards C) Last semester's average GPA for students in seven majors in a business school D) The number of U.S. primary care clinics by type (urban, suburban, rural) Answer: D Explanation: Pie charts are only used to display parts of a whole. Difficulty: 2 Medium Topic: 03.06 Pie Charts Learning Objective: 03-07 Make an effective pie chart. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 50) Scatter plots are A) useful in visualizing trends over time. B) useful in identifying causal relationships. C) often fitted with a linear equation in Excel. D) applicable mainly to discrete data. Answer: C Explanation: Scatter plots reveal association (not cause-and-effect). Excel makes it easy to fit a linear equation to a time series on a scatter plot. Difficulty: 2 Medium Topic: 03.07 Scatter Plots Learning Objective: 03-08 Make and interpret a scatter plot. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

51) Which is not a characteristic of an effective summary table? A) The main point should be clear within 10 seconds. B) Data to be compared should be displayed in rows, not columns. C) Data should be rounded to three or four significant digits. D) Use space instead of lines to separate columns. Answer: B Explanation: Research suggests that side-by-side comparisons are easier. Rounding also helps, as well as not trying to show too much in one table. Difficulty: 2 Medium Topic: 03.08 Tables Learning Objective: 03-08 Make and interpret a scatter plot. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 52) Effective summary tables generally A) have very detailed column headings and footnotes. B) round their data to three or four significant digits. C) use plenty of heavy vertical lines to separate the columns. D) have the raw data listed in a footnote for clarity. Answer: B Explanation: We round because too much accuracy may make it harder to assess magnitudes (e.g., 5.01873 mm and 5.02016 mm both round to 5.02 mm). Modern table style usually omits vertical lines. Difficulty: 2 Medium Topic: 03.08 Tables Learning Objective: 03-09 Make simple tables and pivot tables. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

53) Pivot tables A) are similar in purpose to simple 2D pie charts. B) show how the data "pivot" around a point. C) show cross-tabulations of data. D) are not really tables at all. Answer: C Explanation: A pivot table shows frequency counts (or sums or averages) in a row-column format. Difficulty: 2 Medium Topic: 03.08 Tables Learning Objective: 03-09 Make simple tables and pivot tables. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 54) Which of the following is least useful in visualizing categorical data? A) Bar chart B) Pie chart C) Line chart D) Pareto chart Answer: C Explanation: Line charts are used to display numerical data over time. Difficulty: 1 Easy Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 55) Which is considered a novelty chart in Excel? A) Pie chart B) Column chart C) Pyramid chart D) Line chart Answer: C Explanation: Pyramid charts utilize the area trick and are hard to read. Difficulty: 1 Easy Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

56) We would use a pivot table to A) cross-tabulate frequencies of occurrence of two variables. B) rotate the data around a central point. C) establish cause-and-effect between X and Y. D) display the data in a 3D scatter plot. Answer: A Explanation: A pivot table shows frequency counts (or sums or averages) in a row-column format. Difficulty: 1 Easy Topic: 03.08 Tables Learning Objective: 03-09 Make simple tables and pivot tables. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 57) Which is not considered a deceptive graphical technique? A) Nonzero origin B) Elastic graph proportions C) Dramatic title D) Axis demarcations Answer: D Explanation: Axis demarcations are helpful on graphs with numerical scales. We try to avoid nonzero origin and leading titles. Difficulty: 1 Easy Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 58) Which is not considered a deceptive graphical technique? A) Undefined units B) 2D graphs C) Authority figures D) Distracting pictures Answer: B Explanation: 2D graphs are generally acceptable. We avoid distracting pictures and unclear units of measurement. Difficulty: 1 Easy Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

59) Which is the most serious deceptive graphical technique? A) Vague source B) Using bold colors C) Nonzero origin D) Unlabeled data points Answer: C Explanation: A nonzero origin can distort relative size. Difficulty: 2 Medium Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Evaluate AACSB: Analytical Thinking Accessibility: Keyboard Navigation 60) Which is not a poor graphing technique? A) Gratuitous pictures B) Labeled axis scales C) 3D bar charts D) Rotated axis Answer: B Explanation: Labeled axis scales are desirable for numerical data. Rotated graphs are harder to read, and we avoid unnecessary pictures. Difficulty: 1 Easy Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 61) Which of these deficiencies would be considered a major graphical deception? A) Vague or unclear source B) Using more than one color or font C) Bar widths proportional to bar height D) Using a dramatic graph title Answer: C Explanation: The area trick occurs when bar width increases along with bar height. Difficulty: 2 Medium Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 20 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

62) Which is not a characteristic of a log scale for time series data? A) Log scales are useful when data change by an order of magnitude. B) The distance from 5 to 50 is the same as the distance from 50 to 500. C) On a log scale, equal distances represent equal ratios. D) Log scales are generally familiar to the average reader. Answer: D Explanation: Some readers lack training to understand a simple log scale, such as the fact that equal distances represent equal ratios. Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 63) Which is not a characteristic of using a log scale to display time series data? A) A log scale helps if we are comparing changes in two time series of dissimilar magnitude. B) General business audiences find it easier to interpret a log scale. C) If you display data on a log scale, equal distances represent equal ratios. Answer: B Explanation: Some business audiences lack training to understand a simple log scale, such as the fact that equal distances represent equal ratios. Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 03-05 Make an effective line chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

64) This histogram shows Chris's golf scores in his last 77 rounds at Devil's Ridge. Which is not a correct statement?

A) The number of bins is consistent with Sturges' Rule. B) The histogram has a noticeable bimodal shape. C) The modal class is 78 < 80. D) About 15 percent of his scores are in the interval 74 < 76. Answer: A Explanation: Sturges' Rule suggests k = 1 + 3.3 log (77) = 7.22, or about 7 bins. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 65) Which is not revealed on a scatter plot? A) Pairs of observed (xi, yi) data values B) Nonlinear relationships between X and Y C) Missing data values due to nonresponses D) Unusual data values (outliers) Answer: C Explanation: Excel simply omits missing data for a scatter plot. Difficulty: 2 Medium Topic: 03.07 Scatter Plots Learning Objective: 03-07 Make an effective pie chart. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 22 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

66) The distribution pictured below is

A) bimodal and skewed right. B) bimodal and skewed left. C) skewed right. D) skewed left. Answer: A Explanation: You can see two modes and a longer right tail. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-04 Identify skewness, modal classes, and outliers in a histogram. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 67) The distribution pictured below is

A) bimodal and skewed right. B) bimodal and skewed left. C) skewed right. D) skewed left. Answer: D Explanation: You can see one mode and a long left tail. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-04 Identify skewness, modal classes, and outliers in a histogram. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 23 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

68) The graph below illustrates which deceptive technique?

A) Poor Y axis scale B) Area trick C) Unclear grid lines D) Dramatic title Answer: B Explanation: Area trick, because area increases along with height. Difficulty: 2 Medium Topic: 03.09 Deceptive Graphs Learning Objective: 03-10 Recognize deceptive graphing techniques. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 69) Which is a characteristic of a histogram's bars? A) The bar widths reveal the cumulative frequencies of data values. B) The bar widths indicate class intervals, and their areas indicate frequencies. C) The bar widths show class intervals, and their heights indicate frequencies. D) The bar widths are an exact multiple of the sample size. Answer: C Explanation: Histogram bar height shows frequencies within each interval. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

70) Below is a frequency distribution of earnings of 50 contractors in a country. Earnings (thousands) 1–10 11–20 20–30 31–40 41–50 50–60

Number of Contractors 2 7 12 15 8 6

Regarding this distribution, which of the following is correct? A) The frequency distribution contains too many class intervals. B) The class interval limits are ambiguous. C) Too few classes were chosen. D) The class intervals are too wide. Answer: B Explanation: There are overlapping bin limits. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation

71) Bob found an error in the following frequency distribution. What is it? Class 1–10 11–20 25–30 31–40 44–50

Frequency 2 6 8 12 6

A) The class limits are overlapping too much. B) The classes are not collectively exhaustive. C) There are too many classes by Sturges' Rule. D) The first class must start at 0. Answer: B Explanation: Bin limits overlap. Where would you put a data value of 23? Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 72) The point halfway between the bin limits in a frequency distribution is known as the A) bin midpoint. B) bin limit. C) bin frequency. D) bin width. Answer: A Explanation: Bin midpoint is the average of the bin limits. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

73) When using a dot plot with a small sample, which is least apparent? A) Dispersion of data values within the array B) The overall shape of the distribution C) Central tendency of data in the data set D) Location of data values within the array Answer: B Explanation: Dot plots reveal center and variation, but shape cannot be judged very well in small samples. Difficulty: 2 Medium Topic: 03.01 Stem-and-Leaf Displays and Dot Plots Learning Objective: 03-01 Make a stem-and-leaf or dot plot. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 74) If you have 256 data points, how many classes (bins) would Sturges' Rule suggest? A) 6 B) 7 C) 8 D) 9 Answer: D Explanation: Sturges' Rule suggests k = 1 + 3.3 log (256) = 9 bins. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 75) If you have 32 data points, how many classes (bins) would Sturges' Rule suggest? A) 5 B) 6 C) 7 D) 8 Answer: B Explanation: Sturges' Rule suggests k = 1 + 3.3 log (32) = 6 bins. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 27 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

76) Which statement is not true concerning Sturges' Rule? A) It proposes adding one class (bin) to the histogram for each extra observation. B) If you double the sample size, you should add one class. C) Its purpose is to tell how many classes (bins) to use in a frequency distribution. D) It is only a guideline and may be overruled by other considerations. Answer: A Explanation: Sturges' Rule suggests about k = 1 + 3.3 log (n) bins. Difficulty: 3 Hard Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 77) To classify prices from 62 recent home sales, Sturges' Rule would recommend A) 7 classes. B) 8 classes. C) 9 classes. D) 10 classes. Answer: A Explanation: Sturges' Rule suggests k = 1 + 3.3 log (62) = 7 bins. Difficulty: 2 Medium Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 78) A histogram can be defined as A) a chart whose bar widths show the cumulative frequencies of data values. B) a chart whose bar widths indicate class intervals and whose areas indicate frequencies. C) a chart whose bar widths show class intervals and whose heights indicate frequencies. D) a chart whose bar heights represent the value of each data point. Answer: C Explanation: Check the textbook definition of histogram. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

79) An open-ended bin (e.g., "50 and over") might be seen in a frequency distribution when A) some data values are not integers. B) data values are nonnumerical. C) extremely large data values exist. D) some data are missing. Answer: C Explanation: For example, General Electric's CEO earned $15.2 million in 2010, which would not fit the bins of a histogram of incomes for ordinary taxpayers. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 80) The width of a class in a frequency distribution is known as the A) midpoint. B) class limit. C) bin frequency. D) class interval. Answer: D Explanation: Bin width and class interval have the same meaning. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-03 Make a histogram with appropriate bins. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 81) A population is of size 5,500 observations. When the data are represented in a relative frequency distribution, the relative frequency of a given interval is 0.15. The frequency in this interval is equal to A) 4,675 B) 800 C) 675 D) 825 Answer: D Explanation: 15 percent of 5,500 is 825. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 29 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

82) A population has 75 observations. One class interval has a frequency of 15 observations. The relative frequency in this category is A) 0.20 B) 0.10 C) 0.15 D) 0.75 Answer: A Explanation: 15/75 = 0.20, or 20 percent. Difficulty: 1 Easy Topic: 03.02 Frequency Distributions and Histograms Learning Objective: 03-02 Create a frequency distribution for a data set. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 83) Below is a sorted stem-and-leaf diagram for the measured speeds (miles per hour) of 49 randomly chosen vehicles on highway I-80 in Nebraska. How many vehicles were traveling exactly the speed limit (70 mph)? Stem unit Leaf unit

= =

10 1

Frequency Stem 1 4 1 5 17 6 19 7 7 8 4 9 49