Applied Statistics for Management
Mock Exam
Course Introduction
Applied Statistics for Management focuses on the use of statistical concepts and methodologies in managerial decision-making processes. The course covers fundamental topics such as data collection and analysis, probability distributions, hypothesis testing, regression analysis, and forecasting techniques, all within a business context. Students learn how to interpret and apply statistical findings to real-world management problems, enabling them to make informed decisions backed by quantitative data. Emphasis is placed on problem-solving, critical thinking, and the use of statistical software to analyze business scenarios, making the course essential for aspiring managers who seek to leverage data-driven strategies in their organizations.
Recommended Textbook
Business Statistics for Contemporary Decision Making 2nd Canadian Edition by Ken Black
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1456 Verified Questions
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Chapter 1: Introduction to Statistics
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Sample Questions
Q1) Interval- and ratio-level data are sometimes referred to as quantitative data.
A)True
B)False
Answer: True
Q2) Which of the following operations is meaningful for processing ordinal data,but is meaningless for processing nominal data?
A)addition
B)multiplication
C)ranking
D)counting
E)division
Answer: C
Q3) A descriptive measure of the population is called a parameter.
A)True
B)False
Answer: True
Q4) A descriptive measure of the sample is called a statistic.
A)True
B)False
Answer: True
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Chapter 2: Charts and Graphs
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Sample Questions
Q1) A cumulative frequency distribution provides a running total of the frequencies in the classes.
A)True
B)False
Answer: True
Q2) A cumulative frequency polygon is also called an ogive.
A)True
B)False
Answer: True
Q3) A summary of data in which raw data are grouped into different intervals and the number of items in each group is listed is called a frequency distribution.
A)True
B)False
Answer: True
Q4) One rule that must always be followed in constructing frequency distributions is that the adjacent classes must overlap.
A)True
B)False
Answer: False
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Chapter 3: Descriptive Statistics
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Sample Questions
Q1) Use computer packages to compute various measures of central tendency,variation,and shape on a set of data,as well as to describe the data distribution graphically.
Answer: Excel delivers a wide range of descriptive statistics.While Excel can generate individual statistics,it can also create several descriptive statistics at once,which makes it an especially useful tool for statisticians.
Q2) Jessica Salas,president of Salas Products,is reviewing the warranty policy for her company's new model of automobile batteries.Life tests performed on a sample of 100 batteries indicated: (1)an average life of 75 months, (2)a standard deviation of 5 months,and (3)a bell shaped battery life distribution.Approximately 68% of the batteries will last between ___.
A)70 and 80 months
B)60 and 90 months
C)65 and 85 months
D)55 and 95 months
E)60 and 100 months
Answer: A
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Chapter 4: Probability
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Sample Questions
Q1) Given P (A)= 0.40,P (B)= 0.50,P (A \(\cap\)0 B)= 0.15.Find P (A|B).
A)0.20
B)0.80
C)0.30
D)0.375
E)0.15
Q2) The list of all elementary events for an experiment is called the sample space. A)True
B)False
Q3) Abel Alonzo,Director of Human Resources,is exploring employee absenteeism at the Plano Power Plant.Ten percent of all plant employees work in the finishing department;20% of all plant employees are absent excessively;and 7% of all plant employees work in the finishing department and are absent excessively.A plant employee is selected randomly;F is the event "works in the finishing department;" and A is the event "is absent excessively." P(F|A)= ___.
A)0.35
B)0.70
C)0.13
D)0.37
E)0.10
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Chapter 5: Discrete Distributions
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Sample Questions
Q1) Solve problems involving the binomial distribution using the binomial formula and the binomial table.
Q2) A Bernoulli process (each trial)has exactly ___ possible outcomes.
A)8
B)4
C)2
D)1
E)6
Q3) The Poisson distribution is being used to approximate a binomial distribution.If n=40 and p=0.06,what value of lambda would be used?
A)0.06
B)2.4
C)0.24
D)24
E)40
Q4) For a binomial distribution in which the probability of success p = 0.5,the variance is twice the mean.
A)True
B)False
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Chapter 6: Continuous Distributions
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Sample Questions
Q1) If x is uniformly distributed over the interval 8 to 12,inclusively (8 \(\le\) x \(\le\) 12),then the mean of this distribution is ___.
A)10
B)20
C)5
D)0
E)unknown
Q2) The average time between phone calls arriving at a call centre is 30 seconds.Assuming that the time between calls is exponentially distributed,find the probability that less than two minutes elapse between calls.
A)0.018
B)0.064
C)0.936
D)0.982
E)1.000
Q3) A correction for continuity must be made when approximating the binomial distribution problems using a normal distribution.
A)True
B)False
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Page 8
Chapter 7: Sampling and Sampling Distributions
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Sample Questions
Q1) Catherine Chao,Director of Marketing Research,needs a sample of households to participate in the testing of a new toothpaste package.She chooses thirty-six of her closest friends.Catherine's sample is a ___.
A)cluster sample
B)convenience sample
C)quota sample
D)systematic sample
E)random sample
Q2) If the population proportion is 0.90 and a sample of size 64 is taken,what is the probability that the sample proportion is more than 0.89?
A)0.1064
B)0.2700
C)0.3936
D)0.6064
E)0.9000
Q3) Saving time and money are reasons to take a sample rather than do a census.
A)True
B)False
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9
Chapter 8: Statistical Inference: Estimation for Single Populations
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80 Flashcards
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Sample Questions
Q1) The z value associated with a two-sided 90% confidence interval is ___.
A)1.28
B)1.645
C)1.96
D)2.575
E)2.33
Q2) Estimate the population mean with an unknown population standard deviation using the t statistic and properties of the t distribution.
Q3) Catherine Chao,Director of Marketing Research,is evaluating consumer acceptance of a new toothpaste package.She randomly selects a sample of 200 households.Forty households prefer the new package to all other package designs.The 90% confidence interval for the population proportion is ___.
A)0.199 to 0.201
B)0.153 to 0.247
C)0.164 to 0.236
D)0.145 to 0.255
E)0.185 to 0.275
Q4) Estimate a population proportion using the z statistic.
10
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Chapter 9: Statistical Inference: Hypothesis Testing for
Single Populations
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Sample Questions
Q1) The rejection and nonrejection regions are divided by a point called the critical value.
A)True
B)False
Q2) The executives of CareFree Insurance,Inc.feel that "a majority of our employees perceive a participatory management style at CareFree." A random sample of 200 CareFree employees is selected to test this hypothesis at the 0.05 level of significance.Ninety employees rate the management as participatory.The appropriate decision is ___.
A)do not reject the null hypothesis
B)reject the null hypothesis
C)reduce the sample size
D)increase the sample size
E)maintain status quo
Q3) Reach a statistical conclusion in hypothesis testing problems about a population proportion using the z statistic.
Q4) When a true null hypothesis is rejected,the researcher has made a Type I error.
A)True
B)False
Q5) Solve for possible Type II errors when failing to reject the null hypothesis.
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Chapter 10: Statistical Inferences About Two Populations
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Sample Questions
Q1) If the sample sizes are greater than 30 and the population variances are known,the basis for statistical inferences about the difference in two population means using two independent random samples is the z statistic,regardless of the shapes of the population distributions.
A)True
B)False
Q2) Test hypotheses about the difference in two population variances using the F distribution.
Q3) Lucy Baker is analyzing demographic characteristics of two television programs,Lost (population 1)and Heroes (population 2).Previous studies indicate no difference in the ages of the two audiences.(The mean age of each audience is the same. )Lucy plans to test this hypothesis using a random sample of 100 from each audience.Her null hypothesis is ___.
A)\(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> \(\neq\) 0
B)\(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> > 0
C)\(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> = 0
D)\(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> < 0
E)\(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> < 1
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Page 12
Chapter 11: Analysis of Variance and Design of Experiments
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Sample Questions
Q1) While reviewing staffing plans for a new pilot plant,Colin Chenaux,VP of Operations at Clovis Chemicals,Inc. ,designed an experiment to test the effects of "supervisor's style" and "training method" on the productivity of operators.The treatment levels were: (1)authoritarian,and participatory for supervisor's style,and (2)technical manuals,training films,and multimedia for training method.Three qualified applicants were randomly selected and assigned to each of the six cells.Colin's experimental design is ___.
A)random block design
B)normalized block design
C)completely randomized design
D)factorial design
E)fractional design
Q2) An experimental design contains only independent variables.
A)True
B)False
Q3) Test a completely randomized design using a one-way analysis of variance.
Q4) Test a randomized block design that includes a blocking variable to control for confounding variables.
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Chapter 12: Simple Regression Analysis and Correlation
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Sample Questions
Q1) Explain what regression analysis is and the concepts of independent and dependent variable.
Q2) The proportion of variability of the dependent variable (y)accounted for or explained by the independent variable (x)is called the coefficient of correlation.
A)True
B)False
Q3) A standard deviation of the error of the regression model is called the ___.
A)coefficient of determination
B)sum of squares of error
C)standard error of the estimate
D)R-squared
E)coefficient of correlation
Q4) One of the assumptions of simple regression analysis is that the error terms are exponentially distributed.
A)True
B)False
Q5) The range of admissible values for the coefficient determination is 1 to +1.
A)True
B)False
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Chapter 13: Multiple Regression Analysis
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Sample Questions
Q1) In the estimated multiple regression model y = b<sub>0</sub> + b<sub>1</sub>x<sub>1</sub> + b<sub>2</sub><sub> </sub>x<sub>2</sub>,if the value of x<sub>1</sub> is increased by 2 and the value of x<sub>2</sub> is increased by 3 simultaneously,the value of y will increase by (2b<sub>1</sub>+ 3b<sub>2</sub>)units.
A)True
B)False
Q2) The model y = \(\beta\)<sub> 0</sub> + \(\beta\)<sub> 1</sub>x<sub>1</sub> + \(\beta\)<sub> 2</sub>x<sub>2</sub> + \(\beta\)<sub> 3</sub>x<sub>3</sub> + \(\varepsilon\) is a first-order regression model.
A)True
B)False
Q3) In a multiple regression model the partial regression coefficient of an independent variable represents the increase in the y variable when that independent variable is increased by one unit if the values of all other independent variables are held constant.
A)True
B)False
Q4) Examine significance tests of both the overall regression model and the regression coefficients.
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Chapter 14: Building Multiple Regression Models
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Sample Questions
Q1) Regression models in which the highest power of any predictor variable is 1 and in which there are no cross product terms are referred to as first-order models.
A)True B)False
Q2) A logarithmic transformation may be applied to both positive and negative numbers.
A)True B)False
Q3) An acceptable method of managing multicollinearity in a regression model is to ___.
A)use the forward selection procedure
B)use the backward elimination procedure
C)use the forward elimination procedure
D)use the stepwise regression procedure
E)use all possible regressions
Q4) If a data set contains k independent variables,the "all possible regression" search procedure will determine 2<sup>k</sup> - 1 different models.
A)True B)False
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Chapter 15: Time-Series Forecasting and Index Numbers
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Sample Questions
Q1) Linear regression models cannot be used to analyze quadratic trends in time-series data.
A)True B)False
Q2) Naïve forecasting models have no useful applications because they do not take into account data trend,cyclical effects or seasonality.
A)True
B)False
Q3) Determine trend in time-series data by using linear regression trend analysis,quadratic model trend analysis,and Holt's two-parameter exponential smoothing method.
Q4) Test for autocorrelation using the Durbin-Watson test,overcoming it by adding independent variables and transforming variables and taking advantage of it with autoregression.
Q5) A stationary time-series data has only trend but no cyclical or seasonal effects. A)True
B)False
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Chapter 16: Analysis of Categorical Data
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Sample Questions
Q1) When using the chi-square goodness-of-fit test,we must make sure that none of the expected frequencies is less than 30.
A)True
B)False
Q2) A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this,a sample of observed data is gathered on this variable resulting in frequencies of 26,10,17,21,and 26.Using \(\alpha\) = .10,the appropriate decision is ___.
A)do not reject the null hypothesis that the observed distribution is uniform
B)do not reject the null hypothesis that the observed distribution is not uniform
C)reject the null hypothesis that the observed distribution is uniform
D)reject the null hypothesis that the observed distribution is not uniform
E)do nothing
Q3) In a chi-square test of independence the contingency table has 4 rows and 3 columns.The number of degrees of freedom for this test is 6.
A)True
B)False
Q4) Use the chi-square test of independence to perform contingency analysis.
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Page 18
Chapter 17: Nonparametric Statistics
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Sample Questions
Q1) The nonparametric alternative to analysis of variance for a randomized block design is the ___.
A)chi-square test
B)Kruskal-Wallis test
C)Mann-Whitney U test
D)Wilcoxon test
E)Friedman test
Q2) The nonparametric alternative to the one-way analysis of variance is the Kruskal-Wallis test.
A)True
B)False
Q3) The Wilcoxon test was used on 18 pairs of data.The total of the ranks (T)were computed to be 111 (for + ranks)and 60 (for - ranks).The z value for this test is ___.
A)-1.11
B)-0.05
C)-0.07
D)0.033
E)2.22
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Chapter 18: Statistical Quality Control
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Sample Questions
Q1) Control charts are used to examine the output of a process for disturbing patterns or for data points that indicate that the process is out-of-control.
A)True
B)False
Q2) Nels Neugent,Purchasing Manager at Pacific Medical Center,is designing a p chart to monitor the proportion of defective purchase orders issued at Pacific.He has the proportions defective for 22 samples of purchase orders.Each sample contained 150 purchase orders,and the average proportion defective is 0.08.The centerline for Nels's p chart is ___.
A)0.08
B)75
C)22
D)1.76
E)0.008
Q3) A schematic representation of all the activities and interactions that occur in a process is called a Pareto chart.
A)True
B)False
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Chapter 19: Decision Analysis
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Sample Questions
Q1) In a decision analysis problem,variables (such as investing in common stocks or corporate bonds)which are under the decision maker's control are called decision alternatives.
A)True
B)False
Q2) In a decision-making under uncertainty scenario using the strategy of minmax regret,all the entries in the opportunity loss table must be zero or positive.
A)True
B)False
Q3) In a decision-making scenario,if the decision maker knows which state of nature will occur,the scenario is called decision-making under certainty.
A)True
B)False
Q4) Make decisions under certainty by constructing a decision table.
Q5) The value of sample information is the ratio of the expected monetary value with information to the expected monetary value without information.
A)True
B)False
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