Business Statistics
Test Questions
Course Introduction
Business Statistics is an essential course that introduces students to the fundamental concepts and techniques used to analyze data and make informed decisions within a business context. The course covers topics such as data collection, descriptive statistics, probability distributions, sampling, hypothesis testing, regression analysis, and the interpretation of statistical results. Emphasis is placed on applying statistical methods to real-world business scenarios, enabling students to critically evaluate information, identify trends, and support strategic decision-making through the effective use of quantitative data.
Recommended Textbook
Business Statistics For Contemporary Decision Making 9th Edition by Ken Black
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Page 2
Chapter 1: Introduction to Statistics
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Sample Questions
Q1) Miguel Hernandez,Senior Vice President of Human Resources at Memorial Hospital is exploring the usage of nursing overtime in the emergency department during the last operating year.Staffing records and emergency department visits for all 360 days between the period of January 1,2012,and December 31,2012,are selected for analysis. Miguel's dataset can best be classified as a
A) statistic
B) census
C) sample
D) sorting
E) parameter
Answer: B
Q2) A list of final grades in an introductory class in business is an example of statistics
A)True
B)False
Answer: false
Q3) The complete collection of all entities under study is called the sample.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Charts and Graphs
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Sample Questions
Q1) A scatter plot is useful for examining the relationship between two numerical variables.
A)True
B)False
Answer: True
Q2) Your company is doing market research to assess the feasibility of a new product.The market research team gathers pricing information of all the existing products that would compete with your company's product.The most expensive brand is priced at $22.95,and the least expensive one at $20.59.If a class width of 0.25 is used,then the class mark of the first class interval will be
A) 20.50
B) 20.59
C) 20.63
D) 21.75
E) 23.09
Answer: C
Q3) A Pareto chart and a pie chart are both types of qualitative graphs.
A)True
B)False
Answer: True
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Chapter 3: Descriptive Statistics
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Sample Questions
Q1) Computations of the variance and standard deviation using grouped data are potentially only approximation of the actual variance and standard deviation.
A)True
B)False
Answer: True
Q2) A statistics student made the following grades on the first 6 tests: 76,82,92,95,79,86.The total number of tests for the semester is 7.What could be her median score for the whole semester?
A) It's not possible to answer without knowing the score on the last test.
B) 76
C) 82
D) 92
E) 95
Answer: C
Q3) The median for ungrouped raw data is more complicated to compute then the median for grouped data.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Probability
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Sample Questions
Q1) The number of different committees of 2 students that can be chosen from a group of 5 students is
A) 20
B) 2
C) 5
D) 10
E) 1
Q2) Let F be the event that a student is enrolled in a finance course,and let S be the event that a student is enrolled in a statistics course. It is known that 40% of all students are enrolled in a finance course and 35% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and finance. A student is randomly selected,and it is found that the student is enrolled in finance. What is the probability that this student is also enrolled in statistics?
A) 0.15
B) 0.75
C) 0.375
D) 0.50
E) 0.80
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Chapter 5: Discrete Distributions
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Sample Questions
Q1) In a hypergeometric distribution the population,N,is finite and known.
A)True
B)False
Q2) A variable that can take on values at any point over a given interval is called a discrete random variable
A)True
B)False
Q3) On Monday mornings,customers arrive at the coffee shop drive thru at the rate of 6 cars per fifteen minute interval. Using the Poisson distribution,the probability that five cars will arrive during the next five minute interval is _____________.
A) 0.1008
B) 0.0361
C) 0.1339
D) 0.1606
E) 0.3610
Q4) Poisson distribution describes the occurrence of discrete events that may occur over a continuous interval of time or space.
A)True
B)False
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Chapter 6: Continuous Distributions
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Sample Questions
Q1) The standard normal distribution is also called a finite distribution because its mean is zero and standard deviation one,always.
A)True
B)False
Q2) Inquiries arrive at a record message device according to a Poisson process of rate 15 inquiries per minute.The probability that it takes more than 12 seconds for the first inquiry to arrive is approximately _________
A) 0.05
B) 0.75
C) 0.25
D) 0.27
E) 0.73
Q3) The height of the rectangle depicting a uniform distribution is the probability of each outcome and it same for all of the possible outcomes
A)True
B)False
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Chapter 7: Sampling and Sampling Distributions
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Sample Questions
Q1) Pinky Bauer,Chief Financial Officer of Harrison Haulers,Inc.,suspects irregularities in the payroll system. She knows that 2,500 payroll vouchers have been issued since January 1,2000,and her staff doesn't have time to inspect each voucher. So,she randomly selects 53 as a starting point and orders her staff to inspect the 53rd voucher and each voucher at an increment of 100 (53,153,253,etc.). Her sample is a ___________.
A) stratified sample
B) simple random sample
C) convenience sample
D) cluster sample
E) systematic sample
Q2) In some situations,sampling may be the only option because the population is inaccessible.
A)True
B)False
Q3) A nonrandom sampling technique that is similar to stratified random sampling is called quota sampling.
A)True
B)False
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9
Chapter 8: Statistical Inference: Estimation for Single Populations
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Sample Questions
Q1) When a range of values is used to estimate a population parameter,it is called a range estimate.
A)True
B)False
Q2) The t score (or table value for Student's t distribution)associated with the upper 5% and 48 degrees of freedom is ______.
A) 1.677
B) 1.687
C) 1.697
D) 1.707
E) 1.717
Q3) In determining the interval estimates for a population variance using the sample variance,it is appropriate to use the values from a chi-square distribution rather than a t-distribution.
A)True
B)False
Q4) A t-distribution is similar to a normal distribution,but with flatter tails.
A)True
B)False
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Chapter 9: Statistical Inference: Hypothesis Testing for
Single Populations
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Sample Questions
Q1) The local swim team is considering offering a new semi-private class aimed at entry-level swimmers,but needs at minimum number of swimmers to sign up in order to be cost effective.Last year's data showed that during 8 swim sessions the average number of entry-level swimmers attending was 15.Suppose the instructor wants to conduct a hypothesis test.The alternative hypothesis for this hypothesis test is: "the population mean is less than 15".The sample size is 8, \(\sigma\) is known,and =.05,the critical value of z is _______.
A) 1.645
B) -1.645
C) 1.96
D) -1.96
E) 2.05
Q2) If a null hypothesis was rejected at the 0.025 level of significance,it will be rejected at a 0.01 level of significance based on the same sample results.
A)True B)False
Q3) When a true null hypothesis is rejected,the researcher has made a Type I error. A)True B)False
Page 11
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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) A researcher wants to estimate the difference in the means of two populations.A random sample of 36 items from the first population results in a sample mean of 430. A random sample of 49 items from the second population results in a sample mean of 460. The population standard deviations are 120 for the first population and 140 for the second population. From this information,a 95% confidence interval for the difference in population means is _______.
A) -95.90 to 35.90
B) -85.44, 25.44
C) -76.53 to 16.53
D) -102.83 to 42.43
E) 98.45 to 125.48
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Page 12
Chapter 11: A Nalysis 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 null hypothesis for training methods is _____________.
A) \(\mu\)<sub>1</sub> = \(\mu\)<sub>2</sub> = \(\mu\)<sub>3</sub>
B) \(\mu\)<sub>1</sub>\(\neq\)\(\mu\)<sub>2</sub> \(\neq\)\(\mu\)<sub>3</sub>
C)\(\mu\)<sub>1</sub> \(\ge\)\(\mu\)<sub>2</sub> \(\ge\) \(\mu\)<sub>3</sub>
D) \(\mu\)<sub>1</sub> \(\le\)\(\mu\)<sub>2</sub> \(\le\) \(\mu\)<sub>3</sub>
E) \(\mu\)<sub>1</sub> \(\le\)\(\mu\)<sub>2</sub> \(\ge\) \(\mu\)<sub>3</sub>
Q2) In analysis of variance tests a F distribution forms the basis for making the decisions.
A)True
B)False
Q3) The statistical methods of analysis of variance assume equal sample means.
A)True
B)False
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Chapter 12: Simple Regression Analysis and Correlation
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Sample Questions
Q1) The variability in the estimated slope is smaller when the x-values are more spread out.
A)True
B)False
Q2) For a certain data set the regression equation is y = 29 - 5x.The correlation coefficient between y and x in this data set _______.
A) must be 0
B) is negative
C) must be 1
D) is positive
E) must be >1
Q3) The total of the squared residuals 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) For the regression line,y = 21 5x,21 is the y-intercept of the line.
A)True
B)False
Page 14
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Chapter 13: Multiple Regression Analysis
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Sample Questions
Q1) In the multiple regression 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> + \(\varepsilon\),the \(\beta\) coefficients of the x variables are called partial regression coefficients.
A)True
B)False
Q2) The multiple regression formulas used to estimate the regression coefficients are designed to ________________.
A) minimize the total sum of squares (SST)
B) minimize the sum of squares of error (SSE)
C) maximize the standard error of the estimate
D) maximize the p-value for the calculated F value
E) minimize the mean error
Q3) The standard error of the estimate of a multiple regression model is essentially the standard deviation of the residuals for the regression model.
A)True
B)False
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Chapter 14: Building Multiple Regression Models
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Sample Questions
Q1) A research project was conducted to study the effect of a chemical on undesired insects.The researcher uses 6 dose levels,and at each level exposes 250 insects to the chemical and proceeds to count the number of insects that die.The researcher uses a binary logistic regression model to estimate the probability of death as a function of dose. Shown below is Minitab output from a logistic regression. Coefficients
Term Coef SE Coef 95% CI Z-Value P-Value VIF
Constant -2.644 0.156 (-2.950,-2.338) -16.94 0.000
Dose 0.6740 0.0391 (0.5973,0.7506) 17.23 0.000 1.00
Odd Ratios for Continuous Predictors
Odds Ratio 95% CI
Dose 1.9621 (1.8173,2.1184)
The estimated odds of death at a given level divided by the estimated odds of death at the following level equals = ______.
A) 1.9621
B) 0.6470
C) 0.5097
D) 0.3271
E) 0.3008
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Chapter 15: Time-Series Forecasting and Index Numbers
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Sample Questions
Q1) One of the ways to overcome the autocorrelation problem in a regression forecasting model is to increase the level of significance for the F test
A)True
B)False
Q2) A weighted aggregate price index where the weight for each item is computed by using the quantities of the base period is known as the
A)Paasche Index
B)Simple Index
C)Laspeyres Index
D)Consumer Price index
E)Producer Price index
Q3) In statistics,the Winters' Three Parameter statistic is a test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis.
A)True
B)False
Q4) The long-term general direction of data is referred to as series.
A)True
B)False
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Chapter 16: Analysis of Categorical Data
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Sample Questions
Q1) A researcher is interested in using a chi-square test of independence to determine if age is independent of minutes spent reading.Age is divided into four categories while minutes spent reading is classified as high,medium,low.The number of degrees of freedom for this test is 12.
A)True
B)False
Q2) A market researcher believes that industry type is independent of the operating margin.He compiles a table with seven industry classifications and classifies operating margin into five levels. When applying a chi-square test of independence to this table,the number of degrees of freedom is _____.
A) 24
B) 35
C) 12
D) 10
E) 11
Q3) The null hypothesis in a chi-square goodness-of-fit test is that the observed distribution is the same as the expected distribution.
A)True
B)False
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Page 18
Chapter 17: Nonparametric Statistics
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Q1) An advantage of nonparametric statistics is that the computations on nonparametric statistics are usually less complicated than those for parametric statistics,particularly for small samples. A)True
B)False
Q2) The methods of parametric statistics can be applied to nominal or ordinal data.
A)True B)False
Q3) The nonparametric alternative to analysis of variance for a randomized block design is the Friedman test.
A)True B)False
Q4) A disadvantage of nonparametric statistics is that the probability statements obtained from most nonparametric tests are not exact probabilities.
A)True B)False
Q5) The nonparametric alternative to linear regression is the Kruskal-Wallis test. A)True B)False
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Chapter 18: Statistical Quality Control
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Sample Questions
Q1) Inspecting the attributes of a finished product to determine whether the product is acceptable,is in need of rework,or is to be rejected is called after-process quality control.
A)True
B)False
Q2) Jack Joyner,Director of Quality Control at Covington Castings (CC),is designing a c chart to monitor the number of nonconformances per aluminum casting produced at CC. The total number of nonconformances for 26 castings is 91.The lower control limit for Jack's c chart is ___________.
A) 1.37
B) -2.11
C) 3.50
D) -1.00
E) 0.00
Q3) Which of the following is not one of Deming's 14 points?
A) Break down barriers between staff areas
B) Adjust numerical quotas
C) Institute training
D) Eliminate slogans
E) Institute leadership
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Chapter 19: Decision Analysis
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Sample Questions
Q1) In decision-making under risk,the expected monetary value without information is
A) the weighted average of the best payoff for each state of nature
B) the largest of the EMVs for the different decision alternatives
C) never smaller than the expected monetary payoff with perfect information
D) the average of the EMVs
E) half the expected monetary value with information
Q2) In a decision-making under uncertainty scenario,the decision maker chooses the decision alternative that has the minimum expected (i.e.,probability-weighted)payoff among all the available alternatives.
A)True
B)False
Q3) The expected monetary payoff of perfect information is the value of perfect information.
A)True
B)False
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