Business Analytics Review Questions
Course Introduction
Business Analytics is an interdisciplinary course that equips students with the quantitative tools and analytical techniques necessary to make data-driven business decisions. The course covers key topics such as data collection, data visualization, statistical analysis, predictive modeling, and optimization, using technologies like Excel, Python, or R. Through real-world business case studies and hands-on projects, students learn to analyze and interpret complex data sets, uncover actionable insights, and effectively communicate findings to support strategic decision-making across various business functions. This course lays a foundation for the integration of analytics into business strategy, enhancing competitiveness and operational efficiency.
Recommended Textbook
Statistical Techniques in Business and Economics 15th Edition by Douglas A. Lind
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2492 Verified Questions
2492 Flashcards
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Chapter 1: What Is Statistics
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Sample Questions
Q1) A store asks shoppers for their zip code to identify market areas. Zip codes are an example of ratio data.
A)True
B)False
Answer: False
Q2) The terms descriptive statistics and inferential statistics can be used interchangeably.
A)True
B)False
Answer: False
Q3) Which word is NOT a part of the definition of descriptive statistics?
A) Organizing
B) Analyzing
C) Presenting
D) Predicting
Answer: D
Q4) A variable such as eye color is also referred to as a(n) _____________ variable.
Answer: qualitative
Q5) When we make an estimate or prediction, we use ________________.
Answer: inferential statistics
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Chapter 2: Describing Data: Frequency Tables, Frequency
Distributions, and Graphic Presentation
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Sample Questions
Q1) What is the difference between a frequency distribution and a cumulative frequency distribution?
Answer: A frequency distribution shows the number of observations in each class. A cumulative frequency distribution shows the sum of number of observations in a class plus all lower ranked or valued classes.
Q2) Why are unequal class intervals sometimes used in a frequency distribution?
A) To avoid a large number of empty classes
B) For the sake of variety in presenting the data
C) To make the class frequencies smaller
D) To avoid the need for midpoints
Answer: A
Q3) A pie chart shows the
A) relative frequencies of a qualitative variable.
B) relative frequencies of a quantitative variable.
C) frequencies of a nominal variable.
D) frequencies of a ratio variable.
Answer: A
Q4) To construct a histogram, the class frequencies are plotted on the
Answer: Y o r vertical axis
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Chapter 3: Describing Data: Numerical Measures
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Sample Questions
Q1) What measure of central location cannot be determined if the distribution has an open-ended class? ____________________
Answer: Arithmetic mean
Q2) When computing a weighed mean, the denominator is always ____________.
Answer: the sum of the weights
Q3) For a data set with an odd number of observations that have been sorted from smallest to largest values, where is the median located?
A) n
B) n/2
C) (n + 1)/2
D) n + ½
Answer: C
Q4) Which of the following measures of dispersion are based on deviations from the mean?
A) Variance
B) Standard deviation
C) Mean deviation
D) All of the above
Answer: D
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Chapter 4: Describing Data: Displaying and Exploring Data
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108 Flashcards
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Sample Questions
Q1) What is the possible range of values for Pearson's coefficient of skewness?
A) -1 and +1
B) -3 and +3
C) 0% and 100%
D) Unlimited values
Q2) What unit of measurement is used to express the coefficient of skewness?
Q3) In a distribution, the second quartile corresponds with the A) Mean.
B) Median.
C) Mode.
D) Variance.
Q4) A stem-and-leaf display includes the following row: 5 | 10 11 31 52 79 98. Assume that the data is rounded to the nearest whole number.
A) The frequency of the class is seven.
B) The minimum value in the class is 5.
C) The maximum value in the class is 98.
D) The class interval is 100.
Q5) The interquartile range is the distance between ___________.
Q6) What is the common purpose of a scatter diagram and a contingency table?
Page 6
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Chapter 5: A Survey of Probability Concepts
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Sample Questions
Q1) A survey of top executives revealed that 35% of them regularly read Time magazine, 20% read Newsweek and 40% read U.S. News & World Report. Ten percent read both Time and U.S. News & World Report. What is the probability that a particular top executive reads either Time or U.S. News & World Report regularly?
A) 0.85
B) 0.06
C) 1.00
D) 0.65
Q2) In a management trainee program, 80 percent of the trainees are female, 20 percent male. Ninety percent of the females attended college, 78 percent of the males attended college. A management trainee is selected at random. What is the probability that the person selected is a male who did NOT attend college?
A) 0.044
B) 0.440
C) 0.256
D) 0.801
Q3) One card will be randomly selected from a standard 52-card deck of cards. What is the probability that it will be the jack of hearts? _____
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Chapter 6: Discrete Probability Distributions
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Sample Questions
Q1) For a binomial distribution, the mean is 0.6 and n = 2. What is \(\pi\)for this distribution?
A) 0.5
B) 1.00
C) 0.3
D) 0.1
Q2) Sweetwater & Associates write weekend trip insurance at a very nominal charge. Records show that the probability that a motorist will have an accident during the weekend and file a claim is 0.0005. Suppose they wrote 400 policies for the coming weekend, what is the probability that exactly two claims will be filed?
A) 0.8187
B) 0.2500
C) 0.0164
D) 0.0001
Q3) As a general rule of thumb, if the items selected for a sample are not replaced and the sample size is less than 5 percent of the population, the binomial distribution can be used to approximate the hypergeometric distribution.
A)True
B)False
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Page 8
Chapter 7: Continuous Probability Distributions
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Sample Questions
Q1) For the normal distribution, the mean plus and minus 1.96 standard deviations will include about what percent of the observations?
A) 50%
B) 99.7%
C) 95%
D) 68%
Q2) An analysis of the grades on the first test in History 101 revealed that they approximate a normal curve with a mean of 75 and a standard deviation of 8. The instructor wants to award the grade of A to the upper 10 percent of the test grades. What is the dividing point between an A and a B grade?
A) 80
B) 85
C) 90
D) 95
Q3) A sample of 500 evening students revealed that their annual incomes were normally distributed with a mean income of $30,000 and a standard deviation of $3,000. What is the income that separates the top 25% from the lower 75% of the incomes?
Q4) How is the expected value of a uniform distribution computed? __________
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Chapter 8: Sampling Methods and the Central Limit
Theorem
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Sample Questions
Q1) A statewide sample survey is to be made. First, the state is subdivided into counties. Seven counties are selected at random and further sampling is concentrated on these seven counties. What type of sampling is this?
A) Simple random
B) Systematic random sampling
C) Cluster
D) Stratified
Q2) Which sampling method would be best to use if the population can be divided into homogeneous subgroups? ______________________
Q3) The Intelligence Quotient (IQ) test scores are normally distributed with a mean of 100 and a standard deviation of 15. You enrolled in a class of 25 students. What is the probability that the class' average IQ exceeds 130?
A) 0.0228
B) 0.9772
C) Approximately zero
D) 0.9544
Q4) What is the name of the standard deviation of the sampling distribution of the sample means called? ______________________
10
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Chapter 9: Estimation and Confidence Intervals
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Sample Questions
Q1) The 95 percent confidence interval states that 95 percent of the sample means of a specified sample size selected from a population will lie within plus and minus 1.96 standard deviations of the hypothesized population mean.
A)True
B)False
Q2) The estimate of the population proportion is to be within plus or minus .10, with a 95 percent level of confidence. The best estimate of the population proportion is .25. How large a sample is required?
Q3) A survey of 50 retail stores revealed that the average price of a microwave was $375 with a standard error of $20. If 90% and 95% confidence intervals were developed to estimate the true cost of the microwave, what similarities would they have?
A) Point estimates
B) Z-variates
C) Standard errors
D) Both "a" and "c"
Q4) Forty-nine items are randomly selected from a population of 200 items. The sample mean is 30 and the sample standard deviation 16. What is the 99 percent confidence interval for the population mean?
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Page 11
Chapter 10: One-Sample Tests of Hypothesis
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Sample Questions
Q1) The probability of a Type I error is also referred to as alpha.
A)True
B)False
Q2) A null hypothesis makes a claim about a
A) Population parameter
B) Sample statistic
C) Sample mean
D) Type II error
Q3) For a two-tailed hypothesis test, the test statistic is z = 2.65. What is the p-value?
Q4) A random sample of 400 families who planned to buy a vacation residence revealed that 228 families want to buy a condominium in Florida. At the 0.01 significance level, test the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. To decide if the sample data support the 55%, state your decision in terms of the null hypothesis. Use a 0.01 level of significance.
Q5) When planning an experiment, how is a significance level related to sample size?
Q6) What type of hypothesis test is indicated if the alternate hypothesis states a direction?
Q7) The p-value is determined by the value of a _______________________.
Page 12
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Chapter 11: Two-Sample Tests of Hypothesis
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Sample Questions
Q1) The net weights (in grams) of a sample of bottles filled by a machine manufactured by Edne, and the net weights of a sample filled by a similar machine manufactured by Orno, Inc., are: Edne: 5, 8, 7, 6, 9 and 7
Orno: 8, 10, 7, 11, 9, 12, 14 and 9
Testing the claim at the 0.05 level that the mean weight of the bottles filled by the Orno machine is greater than the mean weight of the bottles filled by the Edne machine, what is the critical value? Assume equal standard deviations for both samples.
A) 2.179
B) 2.145
C) 1.782
D) 1.761
Q2) When dependent samples are used to test for differences in the means, we compute ________________ differences.
Q3) When the standard deviations are equal but unknown, a test for the differences between two populations assumes that the populations are _____________ distributed.
Q4) When testing for a difference between the means of two dependent samples n<sub>1</sub> and n<sub>2</sub> are _______________.
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Page 13
Chapter 12: Analysis of Variance
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Sample Questions
Q1) When testing for differences between treatment means, a confidence interval is based on
A) the mean square error.
B) the standard deviation.
C) the sum of squared errors.
D) the standard error of the mean.
Q2) If an ANOVA test is conducted and the null hypothesis is rejected, what does this indicate?
A) Too many degrees of freedom
B) No difference between the population means
C) A difference between at least one pair of population means
D) All population means are different
Q3) A company compared the variance of salaries for employees who have been employed for 5 years or less with employees who have been employed for 10 years or more. They randomly selected 21 employees with 5 years or less experience and 15 employees with 10 years or more experience. The standard deviation for the group with 5 years or less experience was $2,225; the standard deviation for the group with 10 years or more experience is $1,875. Using the 0.05 significance level, what is the decision regarding the null hypothesis?
Q4) ANOVA requires that the populations should be ______, ______, and _____.
Page 14
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Chapter 13: Correlation and Linear Regression
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Sample Questions
Q1) If the value of r is -0.96, what does this indicate about the dependent variable as the independent variable increases? ___________
Q2) A sales manager for an advertising agency believes that there is a relationship between the number of contacts that a sales person makes and the amount of the sales dollars earned. What is the dependent variable?
A) Salesperson
B) Number of contacts
C) Amount of sales dollars
D) Sales manager
Q3) The regression equation is = 30 + 2.56X, the sample size is 14, and the standard error of the slope is 0.97. What is the test statistic to test the significance of the slope?
A) z = -2.56
B) z = 2.639
C) t = 2.56
D) t = 2.639
Q4) What is the value of the correlation coefficient if there is perfect correlation?
Q5) What are the inputs and the output of linear regression?
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Chapter 14: Multiple Regression Analysis
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Sample Questions
Q1) In multiple regression analysis, a correlation matrix is used to check for
Q2) What are the five assumptions of linear multiple regression?
Q3) In multiple regression analysis, how is the degree of association between a set of independent variables and a dependent variable measured?
A) Confidence intervals.
B) Autocorrelation.
C) Coefficient of multiple determination.
D) Standard error of estimate.
Q4) The variance inflation factor can be used to
A) select or eliminate variables for a multiple regression model.
B) evaluate homoscedasticity.
C) evaluate the distribution of residuals.
D) test null hypothesis that all regression coefficients equal zero must be rejected.
Q5) In a multiple regression analysis ANOVA table, what determines the degrees of freedom associated with the regression sum of squares? ___________________
Q6) What statistic is used to assess multicollinearity in multiple regression analysis?
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Page 16
Chapter 15: Index Numbers
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Sample Questions
Q1) What does a typical market basket of goods and services include?
A) Bread
B) Beer
C) Milk
D) All of the above
Q2) The CPI for "educational books and supplies" in June of 2006 was 386.7 (1982-1984 = 100). Interpret this index.
A) There was no significant increase in the price of "educational books and supplies".
B) The price of "educational books and supplies" increased 386.7 times.
C) If the average price of a textbook in 1982-1984 was $25.00, the CPI for "educational books and supplies" would predict that the price of the textbook in June 2006 would be $71.68.
D) If the average price of a textbook in 1982-1984 was $25.00, the CPI for "educational books and supplies" would predict that the price of the textbook in June 2006 would be $96.68.
Q3) What is the symbol used to designate a base period price? _______
Q4) What is the CPI called when it determines real income? ___________
Q5) Cost-of-living adjustments are based on the _______________________.
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Chapter 16: Time Series and Forecasting
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Sample Questions
Q1) For a five-year moving average, how many values will be lost at the beginning and end of the time series?
A) 0 at the start and 4 at the end
B) 3 at the start and 3 at the end
C) 2 at the start and 2 at the end
D) 0 at the start and 5 at the end
Q2) In a time series, high sales in the summer and low sales in the winter is called?
A) Secular trend
B) Seasonal variation
C) Cyclical variation
D) Variation
Q3) The merchants in Dallas, Texas, suffered flood damage in May 2003. Stores were closed for remodeling nearly two months. What is this type of variation in sales called?
A) Secular trend
B) Seasonal variation
C) Cyclical variation
D) Episodic variation
Q4) Autocorrelation can be corrected by using a ________.
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Chapter 17: Nonparametric Methods: Goodness-Of-Fit
Tests
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Sample Questions
Q1) For any goodness-of-fit test, the null hypothesis is that there is ____ difference between the expected and observed distributions.
Q2) What does a significantly large chi-square statistic infer about the differences between the observed and expected frequencies in a goodness-of-fit test?
Q3) To verify that a frequency distribution for sample data is normally distributed, the expected frequencies are computed using probabilities from a _____________ distribution.
Q4) In a goodness-of-fit test, the null hypothesis (no difference between sets of observed and expected frequencies) is rejected when the
A) computed chi-square is less than the critical value.
B) difference between the observed and expected frequencies is significantly large.
C) difference between the observed and expected frequencies is small.
D) difference between the observed and expected frequencies occurs by chance.
Q5) Contingency table analysis can be used to test for a relationship between two _________ scaled variables.
Q6) What is the null hypothesis in the goodness-of-fit test? ____________
Q7) What is the shape of the chi-square distribution? ___________________
Page 19
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Chapter 18: Nonparametric Methods: Analysis of Ranked
Data
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Sample Questions
Q1) The test statistic for the Wilcoxon signed-rank test is the _________ statistic.
Q2) A Spearman's rank-order correlation coefficient of 0.91 indicates a very weak relationship.
A)True
B)False
Q3) When testing H<sub>0</sub>: Median equals $12.40 and the alternate hypothesis: Median does not equal $12.40, what is the critical value of z at the 10% level of significance?
A) \(\pm\)1.96
B) \(\pm\)1.65
C) \(\pm\)2.33
D) \(\pm\)0.10
Q4) The _____________ of the differences between "before and after" measurements is evaluated in a Wilcoxon Signed-Rank test.
Q5) A nonparametric test
A) assumes that the populations are normally distributed. B) assumes that the populations have equal standard deviations. C) makes no assumptions about the population distributions. D) assumes that the populations follow a standard normal distribution.
Page 20
Q6) The Sign test requires the populations to be _____________.
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Page 21
Chapter 19: Statistical Process Control and Quality Management
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Sample Questions
Q1) The upper and lower control limits are usually set at A) the mean.
B) above the mean.
C) 3 standard deviations from the mean.
D) 2 standard deviations from the mean.
Q2) The following are examples of attributes: the width of a cracked weld, the length of time that a relay works; the amount of water in a radiator, the diameter of a tire.
A)True
B)False
Q3) The technique that tallies types of defects and their frequency is called
A) range charts.
B) Pareto analysis.
C) control charts.
D) fishbone diagram.
Q4) How is the center line of a mean chart labeled? _______
Q5) A fishbone diagram is used to determine if a process is out of control.
A)True
B)False
Q6) A fishbone diagram is an ________________ tool.
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Chapter 20: An Introduction to Decision Theory
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Sample Questions
Q1) A minimax regret strategy will always choose the act or alternative that A) maximizes the expected monetary value. B) minimizes the maximum regret or opportunity loss. C) maximizes the potential payoff regardless of uncertainty. D) guarantees a payoff for any state of nature.
Q2) What is the potential loss for an uncertain state of nature called?
Q3) The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Since this seedless watermelon costs $4, will sell for $7, and is highly perishable, he only expects to sell between 6 and 9 of them. What is the opportunity loss for purchasing 7 watermelons when the demand is for 9 watermelons?
A) 0
B) 3
C) 4
D) 6
Q4) Maximizers advocate a maximin strategy.
A)True
B)False
Q5) In a payoff table, what is another name for alternatives? _______
Page 23
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