Applied Business Statistics
Review Questions
Course Introduction
Applied Business Statistics introduces students to statistical concepts and techniques essential for analyzing and interpreting data in business contexts. The course covers topics such as descriptive statistics, probability distributions, sampling methods, hypothesis testing, regression analysis, and decision-making under uncertainty. Emphasis is placed on applying statistical tools to real-world business problems, using software to organize and analyze data, and interpreting outputs to support management decisions. By the end of the course, students will be equipped with the skills to make data-driven decisions and communicate statistical findings effectively in a business environment.
Recommended Textbook
Business Statistics in Practice 7th Edition by
Bruce Bowerman
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9 Chapters
1039 Verified Questions
1039 Flashcards
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Page 2
Chapter 11: Statistical Inferences for Population Variances
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43 Flashcards
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Sample Questions
Q1) We use the following data for a test of the equality of variances for two populations at = .10.Sample 1 is randomly selected from population 1 and sample 2 is randomly selected from population 2.Can we reject H<sub>0</sub> at = .10?
Q2) When testing H<sub>0</sub>: <sub>1</sub><sup>2</sup> <sub>2</sub><sup>2</sup> and H<sub>A</sub>: <sub>1</sub><sup>2</sup> > <sub>2</sub><sup>2</sup>,where s<sub>1</sub><sup>2</sup> = .004,s<sub>2</sub><sup>2</sup> = .002,n<sub>1</sub> = 4,and n<sub>2</sub> = 7 at = .05,what is the decision on H<sub>0</sub>?
Q3) What is the value of the F statistic for H<sub>0</sub>: <sub>1</sub><sup>2</sup> <sub>1</sub><sup>2</sup>,H<sub>A</sub>: <sub>1</sub><sup>2</sup> > <sub>1</sub><sup>2</sup>,where s<sub>1</sub> = 3.3 and s<sub>2</sub> = 2.1?
Q4) What is the F statistic for testing H<sub>0</sub>: <sub>1</sub><sup>2</sup> <sub>2</sub><sup>2</sup>,H<sub>A</sub>: <sub>2</sub><sup>2</sup> > <sub>1</sub><sup>2</sup> at = .05,where n<sub>1</sub> = 16,n<sub>2</sub> = 19,s<sub>1</sub><sup>2</sup> = .03,and s<sub>2</sub><sup>2</sup> = .02?
Q5) The F statistic can assume either a positive or a negative value. A)True B)False
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Chapter 12: Experimental Design and Analysis of Variance
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114 Flashcards
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Sample Questions
Q1) A company that fills gallon containers of water has four machines.The quality control manager needs to determine whether the average fill for these machines is the same.Looking at 19 one-gallon containers,we have the following data of fill measures (x)in quarts.
Q2) Consider the one-way ANOVA table.
Q3) When we compute 100(1 - )confidence intervals,the value of is called the
A)Comparisonwise error rate.
B)Tukey simultaneous error rate.
C)Experimentwise error rate.
D)Pairwise error rate.
Q4) A sum of squares that measures the total amount of variability in the observed values of the response variable is referred to as the:
A)Treatment sum of squares.
B)Error sum of squares.
C)Sum of squares within-treatment.
D)Total sum of squares.
E)Interaction sum of squares.
Q5) Looking at four different diets,a researcher randomly assigned 20 equally overweight women into each of the four diets.What are the degrees of freedom total?
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Chapter 13: Chi-Square Tests
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Sample Questions
Q1) The <sup>2</sup> statistic is used to test whether the assumption of normality is reasonable for a given population distribution.The sample consists of 5000 observations and is divided into 6 categories (intervals).The degrees of freedom for the chi-square statistic are:
A)4999
B)6
C)5
D)4
E)3
Q2) A study of car accidents and drivers who use cell phones collects the following sample data.
Q3) A survey was conducted on the age and gender of the purchasers of a specific automotive model.The results are below:
Q4) The distance traveled by buses before thir first major motor failure is distributed below,with an estimated mean and standard deviation of 95.7 and 38.1.Also shown are the expected frequencies of these intervals if the original population was a normal distribution.
Q5) A survey was conducted on the age and gender of the purchasers of a specific automotive model.The results are below.
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Chapter 14: Simple Linear Regression Analysis
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Sample Questions
Q1) The estimated simple linear regression equation minimizes the sum of the squared deviations between each value of Y and the line.
A)True
B)False
Q2) An experiment was performed on a certain metal to determine if the strength is a function of heating time.The sample size consists of 10 metal sheets.The simple linear regression equation is
Q3) Consider the following partial computer output from a simple linear regression analysis.
Q4) The following results were obtained from a simple regression analysis: = 37.2895 - (1.2024)X r<sup>2</sup> = .6744 s<sub>b</sub> = .2934 What is the proportion of the variation explained by the simple linear regression model?
Q5) Based on 25 time-ordered observations from a simple regression model,we have determined the Durbin-Watson statistic,d = 1.39.At = .05,test to determine if there is any evidence of positive autocorrelation.State your conclusions.
Q6) Use the least squares regression equation,
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Page 6
Chapter 15: Multiple Regression and Model Building
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154 Flashcards
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Sample Questions
Q1) If we are testing the significance of the independent variable X<sub>1</sub> and we reject the null hypothesis H<sub>0</sub>: <sub>1</sub> = 0,we conclude that:
A)X<sub>1</sub> is significantly related to y.
B)X<sub>1</sub> is not significantly related to y.
C)X<sub>1</sub> is an unimportant independent variable.
D) <sub>1</sub> is significantly related to the dependent variable y.
Q2) Below is a partial multiple regression ANOVA table.
Q3) If the multiple coefficient of determination that relates x<sub>2</sub> to all the other independent variables,R<sup>2</sup>(x<sub>2</sub>)= .94,calculate the variance inflation factor for x<sub>2</sub>.Should the analyst be concerned about multicollinearity? Why or why not?
Q4) As we increase the number of independent variables in a multiple regression model,the F statistic will __________ increase.
A)Always
B)Sometimes
C)Never
Q5) Use the following correlation matrix and determine the best multiple regression prediction equation that has no significant multicollinearity.
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Chapter 16: Time Series Forecasting and Index Numbers
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Sample Questions
Q1) Consider the quarterly production data (in thousands of units)for the XYZ manufacturing company below.The normalized (adjusted)seasonal factors are winter = .9982,spring = .9263,summer = 1.139,and fall = .9365.
Q2) As you probably know,in a given week,the NYSE (New York Stock Exchange)is generally open from Monday through Friday.If we wanted to use the multiple regression method with dummy variables to study the impact of the day of the week on stock market performance,we would need ____ dummy variables.
A)5
B)52
C)4
D)3
E)365
Q3) Consider the following set of quarterly sales data,given in thousands of dollars.
Q4) The following data on prices and quantities for the years 1995 and 2000 are given for three products.
Q5) Given the following data,compute the mean squared error (deviation).
Q6) The following data on prices and quantities for the years 1995 and 2000 are given for three products.
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Chapter 17: Process Improvement Using Control Charts
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Sample Questions
Q1) How well a product or service performs in the marketplace is called:
A)Process capability.
B)Quality of conformance.
C)Quality of performance.
D)Quality of design.
E)Process control.
Q2) A manufacturer of windows produces one type that has a plastic coating.The specification limits for the plastic coating are 30 and 70.From time to time the plastic coating can become uneven.Therefore,to keep the coating as even as possible,thickness measurements are periodically taken at four different locations on the window.15 subgroups were observed,each consisting of four thickness measurements,with the following results: mean of the means = \(\overline { \overline{ x } }\)
= 50.05,and average range of 8.85.Find the sigma level capability of the process.
A)4.64
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Chapter 18: Nonparametric Methods
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Sample Questions
Q1) An e-business/e-commerce information technology consulting company wants to compare the effectiveness of three programming languages that its programmers use.Currently each programming language is used by approximately 1/3 of the company's programmers.The director of the programming division randomly selected 5 programmers from the users of each of the three programming languages and assigned the same simple programming task to each programmer.All three populations have highly skewed distributions with extreme outliers. The rank sum values for each of the programming groups are: T<sub>1</sub> = 23,T<sub>2</sub> = 48,and T<sub>3</sub> = 49.At = .05,does the median time required to program a simple task differ between the three different programming languages?
A)H = 4.34,reject the null hypothesis.
B)H = 4.34,do not reject the null hypothesis.
C)H = 5.99,reject the null hypothesis.
D)H = 5.99,do not reject the null hypothesis.
Q2) Nonparametric tests can be more powerful than the corresponding t or F tests if the population distribution is highly skewed or nonnormal.
A)True
B)False
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Page 10
Chapter 19: Decision Theory
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Sample Questions
Q1) Alternatives 1 and 2 in the following payoff table represent the two possible manufacturing strategies that the EKA manufacturing company can adopt.The level of demand affects the success of both strategies.The states of nature (S<sub>I</sub>)represent the levels of demand for the company products.S<sub>1</sub>,S<sub>2</sub>,and S<sub>3</sub> characterize high,medium,and low demand,respectively.The payoff values are in thousands of dollars.
Q2) Maximax is a criterion used when making decisions under __________________.
A)Certainty
B)Uncertainty
C)Risk
D)Alternatives
Q3) The _________ curve of an individual decision maker is a plot of the decision maker's utilities versus the profits.
A)Utility
B)Maximax
C)Posterior
D)Preposterior
Q4) Maximin is a criterion used when making decisions under certainty.
A)True
B)False
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