Business Statistics
Final Test Solutions
Course Introduction
Business Statistics explores the application of statistical methods and techniques to business decision-making processes. The course covers essential topics such as data collection, descriptive statistics, probability distributions, hypothesis testing, regression analysis, and inferential statistics. Emphasis is placed on interpreting data, drawing meaningful conclusions, and applying quantitative reasoning to real-world business scenarios. Students will gain practical skills in using statistical tools and software to analyze business data, evaluate uncertainties, and support informed decision-making in fields such as marketing, finance, and operations management.
Recommended Textbook
Essentials of Statistics for Business and Economics 6th Edition by David R. Anderson
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13 Chapters
1749 Verified Questions
1749 Flashcards
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Page 2
Chapter 1: Data and Statistics
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) The height of a building, measured in feet, is an example of A)categorical data
B)either categorical or quantitative data
C)feet data
D)quantitative data
Answer: D
Q2) A population is
A)the same as a sample
B)the selection of a random sample
C)the collection of all items of interest in a particular study
D)always the same size as the sample
Answer: C
Q3) The scale of measurement that is simply a label for the purpose of identifying the attribute of an element is the
A)ratio scale
B)nominal scale
C)ordinal scale
D)interval scale
Answer: B
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Page 3
Chapter 2: Descriptive Statistics: Tabular and Graphical Presentations
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65 Verified Questions
65 Flashcards
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Sample Questions
Q1) In a cumulative percent frequency distribution, the last class will have a cumulative percent frequency equal to
A)one
B)100
C)the total number of elements in the data set
D)None of these alternatives is correct.
Answer: B
Q2) Refer to Exhibit 2-2. What percentage of the students does not plan to go to graduate school?
A)280
B)520
C)65
D)32
Answer: C
Q3) The difference between the lower class limits of adjacent classes provides the A)number of classes
B)class limits
C)class midpoint
D)class width
Answer: D
Page 4
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Chapter 3: Descriptive Statistics: Numerical Measures
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162 Verified Questions
162 Flashcards
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Sample Questions
Q1) In a statistics class, the average grade on the final examination was 75 with a standard deviation of 5. Use Chebyshev's theorem to answer the following questions.
a.At least what percentage of the students received grades between 50 and 100?
b.Determine an interval for the grades that will be true for at least 70% of the students. (Hint: First, compute the Z-score.)
Answer: a.96%
b.75 \(\pm\) (1.826)(5) = 65.87 to 84.13
Q2) In 2008, the average age of students at UTC was 22 with a standard deviation of 3.96. In 2009, the average age was 24 with a standard deviation of 4.08. In which year do the ages show a more dispersed distribution? Show your complete work and support your answer.
Answer: C.V. for 2008 = 18%, C.V. for 2009 = 17%
Therefore 2008 shows a more dispersed distribution.
Q3) Which of the following is a measure of dispersion?
A)percentiles
B)quartiles
C)interquartile range
D)all of the above are measures of dispersion
Answer: C
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Page 5
Chapter 4: Introduction to Probability
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146 Verified Questions
146 Flashcards
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Sample Questions
Q1) Some of the CDs produced by a manufacturer are defective. From the production line, 5 CDs are selected and inspected. How many sample points exist in this experiment?
A)10
B)25
C)30
D)32
Q2) If A and B are mutually exclusive events with P(A) = 0.3 and P(B) = 0.5, then P(A \(\cap\) B) =
A)0.30
B)0.15
C)0.00
D)0.20
Q3) The probability of the occurrence of event A in an experiment is 1/3. If the experiment is performed 2 times and event A did not occur, then on the third trial event A
A)must occur
B)may occur
C)could not occur
D)has a 2/3 probability of occurring
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Page 6
Chapter 5: Discrete Probability Distributions
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) An experiment consists of making 80 telephone calls in order to sell a particular insurance policy. The random variable in this experiment is a
A)discrete random variable
B)continuous random variable
C)complex random variable
D)simplex random variable
Q2) Refer to Exhibit 5-8. The probability that there are 8 occurrences in ten minutes is A).0241
B).0771
C).1126
D).9107
Q3) Refer to Exhibit 5-2. What is the probability that among the students in the sample at least 6 are male?
A)0.0413
B)0.0079
C)0.0007
D)0.0499
Q4) Determine the probability of being dealt 4 kings in a 5-card poker hand.
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7
Chapter 6: Continuous Probability Distributions
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165 Verified Questions
165 Flashcards
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Sample Questions
Q1) The exponential probability distribution is used with A)a discrete random variable
B)a continuous random variable
C)any probability distribution with an exponential term
D)an approximation of the binomial probability distribution
Q2) The advertised weight on a can of soup is 10 ounces. The actual weight in the cans follows a uniform distribution and varies between 9.3 and 10.3 ounces.
a.Give the mathematical expression for the probability density function.
b.What is the probability that a can of soup will have between 9.4 and 10.3 ounces?
c.What is the mean weight of a can of soup?
d.What is the standard deviation of the weight?
Q3) The salaries at a corporation are normally distributed with an average salary of $19,000 and a standard deviation of $4,000.
a.What is the probability that an employee will have a salary between $12,520 and $13,480?
b.What is the probability that an employee will have a salary more than $11,880?
c.What is the probability that an employee will have a salary less than $28,440?
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Page 8
Chapter 7: Sampling and Sampling Distributions
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Four hundred people were asked whether gun laws should be more stringent. Three hundred said "yes," and 100 said "no." The point estimate of the proportion in the population who will respond "yes" is
A)300
B)approximately 300
C)0.75
D)0.25
Q2) There are 6 children in a family. The number of children defines a population. The number of simple random samples of size 2 (without replacement) which are possible equals
A)12
B)15
C)3
D)16
Q3) If we consider the simple random sampling process as an experiment, the sample mean is
A)always zero
B)always smaller than the population mean
C)a random variable
D)exactly equal to the population mean
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Chapter 8: Interval Estimation
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) A researcher is interested in determining the average number of years employees of a company stay with the company. If past information shows a standard deviation of 7 months, what size sample should be taken so that at 95% confidence the margin of error will be 2 months or less?
Q2) A random sample of 53 observations was taken. The average in the sample was 90 with a variance of 400.
a.Construct a 98% confidence interval for \(\mu\).
b.Construct a 99% confidence interval for \(\mu\).
c.Discuss why the 98% and 99% confidence intervals are different.
d.What would you expect to happen to the confidence interval in Part a if the sample size was increased? Be sure to explain your answer.
Q3) A sample of 60 students from a large university is taken. The average age in the sample was 22 years with a standard deviation of 6 years. Construct a 95% confidence interval for the average age of the population.
Q4) A simple random sample of 144 items resulted in a sample mean of 1257.85 and a standard deviation of 480. Develop a 95% confidence interval for the population mean.
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Page 10
Chapter 9: Hypothesis Tests
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) For a lower bounds one-tailed test, the test statistic z is determined to be zero. The p-value for this test is
A)zero
B)-0.5
C)+0.5
D)1.00
Q2) An automobile manufacturer stated that it will be willing to mass produce electric-powered cars if more than 30% of potential buyers indicate they will purchase the newly designed electric cars. In a sample of 500 potential buyers, 160 indicated that they would buy such a product.
a.State the hypotheses for this problem
b.Compute the standard error of.
c.Compute the test statistic.
d.At 95% confidence, what is your conclusion? Should the manufacturer produce the new electric powered car?
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11
Chapter 10: Comparisons Involving Means, Experimental
Design and Analysis of Variance
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208 Verified Questions
208 Flashcards
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Sample Questions
Q1) The mean square is the sum of squares divided by A)the total number of observations
B)its corresponding degrees of freedom
C)its corresponding degrees of freedom minus one D)None of these alternatives is correct.
Q2) Refer to Exhibit 10-4. The degrees of freedom for the t-distribution are A)22
B)23
C)24
D)19
Q3) Which of the following is not a required assumption for the analysis of variance?
A)The random variable of interest for each population has a normal probability distribution.
B)The variance associated with the random variable must be the same for each population.
C)At least 2 populations are under consideration.
D)Populations have equal means.
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Page 12
Chapter 11: Comparisons Involving Proportions and a Test of Independence
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) Refer to Exhibit 11-1. The number of degrees of freedom associated with this problem is
A)150
B)149
C)2
D)3
Q2) A population where each element of the population is assigned to one and only one of several classes or categories is a
A)multinomial population
B)Poisson population
C)normal population
D)None of these alternatives is correct.
Q3) If we are interested in testing whether the proportion of items in population 1 is larger than the proportion of items in population 2, the
A)null hypothesis should state P<sub>1</sub> - P<sub>2</sub> < 0
B)null hypothesis should state P<sub>1</sub> - P<sub>2</sub> > 0
C)alternative hypothesis should state P<sub>1</sub> - P<sub>2</sub> > 0
D)alternative hypothesis should state P<sub>1</sub> - P<sub>2</sub> < 0
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Chapter 12: Simple Linear Regression
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) Refer to Exhibit 12-8. The total sum of squares (SST) is A)-156
B)234
C)1870
D)1974
Q2) Refer to Exhibit 12-6. The y intercept is
A)-1.5
B)24
C)0.50
D)-0.707
Q3) In a regression and correlation analysis if r<sup>2</sup> = 1, then
A)SSE must also be equal to one
B)SSE must be equal to zero
C)SSE can be any positive value
D)SSE must be negative
Q4) Refer to Exhibit 12-1. The coefficient of determination is A)0.7096
B)- 0.7906
C)0.625
D)0.375
Page 14
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Chapter 13: Multiple Regression
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146 Verified Questions
146 Flashcards
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Sample Questions
Q1) In a multiple regression model, the values of the error term ,\(\varepsilon\), are assumed to be
A)zero
B)dependent on each other C)independent of each other D)always negative
Q2) Refer to Exhibit 13-10. The value of SSE is A)3,740
B)170
C)260
D)2000
Q3) Refer to Exhibit 13-9. The coefficient of X<sub>2</sub>
A)is significant
B)is not significant
C)can not be tested, because not enough information is provided D)None of these alternatives is correct.
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