Course Introduction
Business Statistics
Exam Practice Tests
Business Statistics is a foundational course that introduces students to the essential statistical concepts and techniques used in business decision-making. The course covers topics such as data collection, descriptive statistics, probability distributions, sampling methods, hypothesis testing, regression analysis, and statistical inference. Emphasis is placed on the interpretation and application of statistical findings to real-world business problems, enabling students to analyze data, draw meaningful conclusions, and make informed managerial decisions. Students also gain hands-on experience with statistical software tools commonly used in the business environment.
Recommended Textbook
Business Statistics 9th Edition by David F. Groebner
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18 Chapters
2372 Verified Questions
2372 Flashcards
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Page 2
Chapter 1: The Where,Why,and How of Data Collection
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167 Verified Questions
167 Flashcards
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Sample Questions
Q1) A consumer products company wants to interview customers regarding a new product.If it wishes to adhere to a predetermined pattern of questions in the interview,which of the following would likely be used?
A)Structured interview
B)Open-end questioning
C)Unstructured interview
D)Written questionnaire
Answer: A
Q2) Population parameters are descriptive numerical measures,such as an average,that describe the entire population.
A)True
B)False
Answer: True
Q3) Typically,it is possible to include a larger number of questions in a phone survey than in a mail survey since it takes less time to complete the survey over the phone.
A)True
B)False
Answer: False
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3
Chapter 2: Graphs,Charts and Tablesdescribing Your Data
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) Histograms cannot have gaps between the bars,whereas bar charts can have gaps.
A)True
B)False
Answer: True
Q2) Sawyer & Company is a law firm in Dallas,Texas.Recently,the administrative manager prepared a report for the managing partners that showed the number of court cases handled by the firm monthly over the past three years.One of the objectives of graphing these data might have been to identify a trend in the number of court cases.
A)True
B)False
Answer: True
Q3) A histogram is used to display which of the following characteristics for a quantitative variable?
A)The approximate center of the data
B)The spread in the data
C)The shape of the distribution
D)All of the above.
Answer: D
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4
Chapter 3: Describing Data Using Numerical Measures
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) The owner of a local gasoline station has kept track of the number of gallons of regular unleaded sold at his station every day since he purchased the station.This morning,he computed the mean number of gallons.This value would be considered a statistic.
A)True
B)False
Answer: False
Q2) If a data set has 1,133 sorted values,what value corresponds to the 3<sup>rd</sup> quartile?
A)The 250<sup>th</sup> value
B)The 850<sup>th</sup> value
C)The 760<sup>th</sup> value
D)The 849<sup>th</sup> value
Answer: B
Q3) Based on the empirical rule we can assume that all bell-shaped distributions have approximately 95 percent of the values within ± 2 standard deviations of the mean.
A)True
B)False
Answer: True
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Chapter 4: Introduction to Probability
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) At gambling casinos all over the country,a popular dice game is called craps.The probability of a player winning at this game can be assessed using:
A)subjective assessment.
B)classical probability.
C)relative frequency of occurrence.
D)None of the above
Q2) If two events are independent,then
A)they must be mutually exclusive.
B)the sum of their probabilities must be equal to one.
C)their intersection must be zero.
D)None of the above
Q3) A New Jersey company relies on a steady supply of power to keep its manufacturing going.Recently at a planning meeting,the general manager stated that the chance of a rolling blackout affecting production is 0.15.She most likely made this assessment using subjective probability assessment.
A)True
B)False
Q4) Explain what is meant by the term mutually exclusive events.Cite an example.
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6
Chapter 5: Discrete Probability Distributions
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) The manager of a movie theater has determined that the distribution of customers arriving at the concession stand is Poisson distributed with a standard deviation equal to 2 people per 10 minutes.What is the probability that 0 customers arrive during a 10-minute period?
A)0.1353
B)0.0183
C)0.9817
D)Essentially 0
Q2) A package delivery service claims that no more than 5 percent of all packages arrive at the address late.Assuming that the conditions for the binomial hold,if a sample of size 10 packages is randomly selected,and the 5 percent rate holds,what is the probability that exactly 2 packages in the sample arrive late?
A)0.0746
B)0.9884
C)0.2347
D)0.0439
Q3) Under what conditions is the binomial distribution symmetric?
Q4) What is the difference between a discrete random variable and a continuous random variable?
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Chapter 6: Introduction to Continuous Probability
Distributions
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122 Flashcards
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Sample Questions
Q1) The makers of Sweet-Things candy sell their candy by the box.Based on company policy,the mean target weight of all boxes is 2.0 pounds.To make sure that they are not putting too much in the boxes,the manager wants no more than 3 percent of all boxes to contain more than 2.10 pounds of candy.In order to do this,what should the mean fill weight be set to if the fill standard deviation is 0.13 pounds? Assume that the box weights are normally distributed.
A)Just over 2 pounds
B)Approximately 2.33 pounds
C)Nearly 1.27 pounds
D)Approximately 1.86 pounds
Q2) The probability distribution for a continuous random variable is represented by a probability density function that defines a curve.
A)True
B)False
Q3) The fares received by taxi drivers working for the City Taxi line are normally distributed with a mean of $12.50 and a standard deviation of $3.25.Based on this information,what is the probability that a specific fare will exceed $15.00?
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Page 8
Chapter 7: Introduction to Sampling Distributions
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136 Flashcards
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Sample Questions
Q1) If a population is not normally distributed,then the sampling distribution for the mean also cannot be normally distributed.
A)True
B)False
Q2) The annual income for independent sales representatives in the United States is thought to be highly right-skewed with a mean equal to $144,300 and a standard deviation of $32,450.Given this information,if a sample of 36 independent sales representatives is selected,what is the probability that the mean of the sample will exceed $130,000?
Q3) Sampling error can be eliminated if the sample size is large enough.
A)True
B)False
Q4) If a random sample of 200 items is taken from a population in which the proportion of items having a desired attribute is p = 0.30,what is the probability that the proportion of successes in the sample will be less than or equal to 0.27?
A)0.0841
B)0.1011
C)0.1912
D)0.1762
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Chapter 8: Estimating Single Population Parameters
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174 Flashcards
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Sample Questions
Q1) A survey of 499 women for the American Orthopedic Foot and Ankle Society revealed that 38% wear flats to work. Use this sample information to develop a 99% confidence interval for the population proportion of women who wear flats to work.
A)(0.324,0.436)
B)(0.302,0.458)
C)(0.368,0.392)
D)0.363,0.397)
Q2) Recently,a report in a financial journal indicated that the 90 percent confidence interval estimate for the proportion of investors who own one or more mutual funds is between 0.88 and 0.92.Given this information,the sample size that was used in this study was approximately 609 investors.
A)True
B)False
Q3) When determining sample size for a proportion,using p = 0.5 will produce the smallest possible value for n.
A)True
B)False
Q4) Under what circumstances would you wish to select a pilot sample?
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Page 10
Chapter 9: Introduction to Hypothesis Testing
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183 Flashcards
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Sample Questions
Q1) Of the two types of statistical errors,the one that decision makers have most control over is Type I error.
A)True
B)False
Q2) To calculate beta requires making a "what if" assumption about the true population parameter,where the "what-if" value is one that would cause the null hypothesis to be false.
A)True
B)False
Q3) Explain what is meant by a p-value.
Q4) The significance level in a hypothesis test corresponds to the maximum probability that a Type I error will be committed.
A)True
B)False
Q5) If a decision maker wishes to reduce the chance of making a Type II error,one option is to increase the sample size.
A)True
B)False
Q6) What is meant by the terms Type I and Type II statistical error?
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Chapter 10: Estimation and Hypothesis Testing for Two
Population Parameters
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121 Flashcards
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Sample Questions
Q1) Suppose that two population proportions are being compared to test whether there is any difference between them.Assume that the test statistic has been calculated to be z = 2.21.Find the p-value for this situation.
A)p-value = 0.0136
B)p-value = 0.4864
C)p-value = 0.0272
D)p-value = 0.9728
Q2) Assume that 10 people join a weight loss program for 3 months.Each person's weight both before and after the program is recorded and the number of pounds each person lost is found.The following summarizes the results for the 10 people: Mean weight lost = 9 pounds
Sample standard deviation of weight lost = 4.6 pounds
Assume that the hypothesis test will be conducted to determine whether or not the weight loss program is effective using a 0.05 level of significance.What is the value of the test statistic?
A)t = 6.19
B)t = 1.96
C)z = 1.96
D)z = 6.19
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Chapter 11: Hypothesis Tests and Estimation for Population
Variances
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Sample Questions
Q1) In a hypothesis test for the equality of two variances,the lower-tail critical value does not need to be found as long as the larger sample variance is placed in the denominator of the test statistic.
A)True
B)False
Q2) Two airlines are being compared with respect to the time it takes them to turn a plane around from the time it lands until it takes off again.The study is interested in determining whether there is a difference in the variability between the two airlines.They wish to conduct the hypothesis test using an alpha = 0.02.If random samples of 20 flights are selected from each airline,what is the appropriate F critical value?
A)3.027
B)2.938
C)2.168
D)2.124
Q3) In a two-tailed hypothesis test for the difference between two population variances,if s<sub>1</sub> = 3 and s<sub>2</sub> = 5,then the test statistic is F = 2.7778.
A)True
B)False
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Chapter 12: Analysis of Variance
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162 Flashcards
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Sample Questions
Q1) In a one-way analysis of variance test in which the levels of the factor being analyzed are randomly selected from a large set of possible factors,the design is referred to as:
A)a fixed-effects design.
B)a random-effects design.
C)an undetermined results design.
D)a balanced design.
Q2) A study recently conducted by a marketing firm analyzed three different advertising designs and four different income levels of potential customers.At each combination of factor A and factor B,5 customers are observed and the number of products produced are recorded.The degrees of freedom for the MSE in this two-factor ANOVA design is 48.
A)True
B)False
Q3) Under the basic logic of one-way analysis of variance,if the within variation is large relative to the between variation,it is an indication that the population means are likely to be different.
A)True
B)False
Q4) What are the assumptions for a one-way analysis of variance design?
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Chapter 13: Goodness-Of-Fit Tests and Contingency Analysis
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105 Flashcards
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Sample Questions
Q1) If any of the observed frequencies are smaller than 5,then categories should be combined until all observed frequencies are at least 5.
A)True
B)False
Q2) In a chi-square contingency analysis,when expected cell frequencies drop below 5,the calculated chi-square value tends to be inflated and may inflate the true probability of ________ beyond the stated significance level.
A)committing a Type I error
B)committing a Type II error
C)Both A and B
D)All of the above
Q3) When testing for independence in a contingency table with 3 rows and 4 columns,there are ________ degrees of freedom.
A)5
B)6
C)7
D)12
Q4) Explain the basic logic behind the chi-square goodness-of-fit test.
Page 15
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Chapter 14: Introduction to Linear Regression and Correlation Analysis
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) If you were going to develop a scatter plot for the purpose of determining whether one of the assumptions of the regression model is being satisfied,which of the following is true?
A)The plot should illustrate a bell-shaped distribution to show that the residuals are normally distributed.
B)The horizontal axis should show the fitted values for the dependent variable.
C)The plot should illustrate a cone shaped look.
D)The points should fall in a straight line.
Q2) A bank is interested in determining whether its customers' checking balances are linearly related to their savings balances.A sample of n = 20 customers was selected and the correlation was calculated to be +0.40.If the bank is interested in testing to see whether there is a significant linear relationship between the two variables using a significance level of 0.05,the value of the test statistic is approximately t = 1.8516.
A)True
B)False
Q3) Explain why it is important to construct scatter plots prior to conducting regression analysis.
Q4) Explain what is meant by the term least squares regression model.
Page 16
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Chapter 15: Multiple Regression Analysis and Model Building
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) In a second-order polynomial regression model,the regression coefficient,B<sub>2</sub>,will be positive if the parabola opens downward and negative when the parabola opens upward.
A)True
B)False
Q2) The forward selection method and the backward elimination method will always lead to choosing the same final regression model.
A)True
B)False
Q3) In multiple regression analysis,the model will be developed with one dependent variable and two or more independent variables.
A)True
B)False
Q4) If one independent variable affects the relationship between a second independent variable and the dependent variable,it is said that there is interaction between the two independent variables.
A)True
B)False
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Chapter 16: Analyzing and Forecasting Time-Series Data
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Sample Questions
Q1) If the Durbin-Watson test leads you to reject the null hypothesis,then you are concluding that the forecast errors are positively autocorrelated.
A)True
B)False
Q2) One of the basic tools for creating a trend-based forecasting model is regression analysis.
A)True
B)False
Q3) If the observed value in a time series for period 3 is y<sub>t</sub> = 128,and the seasonal index that applies to period 3 is 1.20,then the deseasonalized value for period 3 is 153.6
A)True
B)False
Q4) A time-series graph shows that annual sales data have grown gradually over the past 10 years.Given this,if a linear trend model is used to forecast future years' sales,the sign on the regression slope coefficient will be positive.
A)True
B)False
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18
Chapter 17: Introduction to Nonparametric Statistics
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Sample Questions
Q1) If we wish to test whether two related populations have equal medians,an appropriate nonparametric test to use is:
A)the Mann-Whitney U test.
B)the Kruskal-Wallis test.
C)the Wilcoxon signed rank test.
D)the Wilcoxon matched-pairs signed rank test.
Q2) Under what conditions should a decision maker use a nonparametric statistical procedure?
Q3) The following null and alternative hypotheses are appropriate when using a Wilcoxon signed rank test.
H<sub>0 </sub>: Population Median equals 14.5
H<sub>A </sub><sub>: </sub>Population Median is not equal to 14.5
A)True
B)False
Q4) Nonparametric statistical tests are used when:
A)the sample sizes are small.
B)we are unwilling to make the assumptions of parametric tests.
C)the standard normal distribution cannot be computed.
D)the population parameters are unknown.
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Chapter 18: Introduction to Quality and Statistical Process Control
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Sample Questions
Q1) Variation exists naturally in the world around us so all processes and products can be expected to vary.
A)True
B)False
Q2) In process improvement efforts,the goal is to first remove the common cause variation and then to reduce the special cause variation in a system.
A)True
B)False
Q3) In most processes,the process control limits are set to correspond with the specification limits on the product.
A)True
B)False
Q4) One of the most common sources of common cause variation is the people who are working in the process.
A)True
B)False
Q5) Referring to the SPC chart signals that a process is out of control,what type of problem does each signal indicate? List the signals.
Page 20
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