Data Analysis for Decision Making
Midterm Exam
Course Introduction
Data Analysis for Decision Making equips students with the essential tools and methodologies for interpreting quantitative data to support effective business and organizational decisions. The course covers concepts such as data collection, statistical analysis, data visualization, predictive modeling, and the use of software tools like Excel and specialized analytics platforms. Students will learn how to apply analytical thinking to real-world problems, draw meaningful insights from datasets, and communicate their findings to stakeholders. Emphasis is placed on critical thinking, data-driven decision making, and ethical considerations in data use.
Recommended Textbook Essentials of Business Statistics 1st Canadian Edition by Ken Black
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15 Chapters
1055 Verified Questions
1055 Flashcards
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Page 2
Chapter 1: Introduction to Statistics
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Sample Questions
Q1) One of the main ways to organize the study of statistics is to divide it in two branches. These two branches are ___ statistics and ___ statistics.
A) positive; normative
B) descriptive; normative
C) positive; inferential
D) descriptive; inferential
E) positive; macro
Answer: D
Q2) Which of the following statements about business statistics is not true?
A) Virtually every area of business uses statistics in decision making.
B) Presenting business statistics always requires the use of a specific graph called a bar chart.
C) There is a wide variety of uses and applications of statistics in business.
D) Business statistics can be used to forecast future values and predict trends.
Answer: B
Q3) Virtually all areas of business use statistics in decision making.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Organizing and Visualizing Data
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Sample Questions
Q1) Your company is doing market research to assess the feasibility of a new product. The market research team gathers pricing information of the 60 existing products in the market 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 the relative frequency of the first class is 0.05 and the cumulative frequency for the second class is 10, then the relative frequency for the second class is
A) 0.05.
B) 0.11.
C) 0.12.
D) 0.17.
E) 1.67.
Answer: C
Q2) For any given data set, a frequency distribution with a larger number of classes will always be better than the one with a smaller number of classes.
A)True
B)False
Answer: False
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Chapter 3: Descriptive Statistics
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Sample Questions
Q1) In a hearing test, subjects estimated the loudness of a sound in decibels. The results are: 71, 68, 75, 68, 62, 80, 73, 68, 68, 67, 70. Compute the mean, median and mode.
Answer: Mean = 70, Median = 68, Mode = 68
Q2) ___ are used to describe the data set.
A) Quantiles
B) Quartiles
C) Percentiles
D) Qucentiles
Answer: C
Q3) Quantiles can be used with ___ data only.
A) qualitative
B) quantitative
C) numerical
D) individual points of
Answer: B
Q4) Box and whisker plots are a slow method to determine skewness.
A)True
B)False
Answer: False
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Chapter 4: Gathering Data
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Sample Questions
Q1) What is the difference between a census and a sample?
Q2) A major limitation of nonrandom samples is that they are not appropriate for most statistical methods.
A)True
B)False
Q3) Paige DeMarco is the Vice President for University Advancement at State University. She is responsible for the capital campaign to raise money for the new student services building. Paige selects the first 100 alumni listed on a web-based social networking site for State University. She intends to contact these individuals regarding possible donations. Her sample is a ___.
A) simple random sample
B) stratified sample
C) systematic sample
D) convenience sample
E) cluster sample
Q4) What is the difference between stratified and cluster sampling? If the objective is to increase precision, which method is preferred?
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Chapter 5: Probability
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Sample Questions
Q1) Suppose that 3% of all TVs made by some company in 2012 are defective. If 2 of these TVs are randomly selected what is the probability that both are defective?
A) 0.0009
B) 0.0025
C) 0.0900
D) 0.0475
E) 0.19
Q2) If two events are mutually exclusive, then their joint probability is always zero.
A)True
B)False
Q3) If E and F are mutually exclusive, then ___.
A) the probability of the union is zero
B) P(E) = 1 - P(F)
C) the probability of the intersection is zero
D) the probability of the union is one
E) P(E) = P(F)
Q4) What are the three methods of assigning probabilities?
Q5) Name the branch of statistics that is supported by probability.
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Chapter 6: Decision Analysis and Expected Value
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Sample Questions
Q1) Dianna Ivy is evaluating a plan to expand the production facilities of International Compressors Company which manufactures natural gas compressors. Dianna feels that the price of coal is a significant factor in her decision, but she cannot control it. For her decision, the different prices of coal represent the ___.
A) payoffs
B) decision alternatives
C) states of nature
D) revised probabilities
E) prior probabilities
Q2) The amount of time a patient waits in a doctor's office is an example of a continuous random variable.
A)True
B)False
Q3) In decision-making under risk, the expected monetary payoff of perfect information is the weighted average of the best payoff for each state of nature (using the probability of the state of nature as the weight).
A)True
B)False
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8
Chapter 7: Discrete Probability Distributions
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Sample Questions
Q1) Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards. A sample of seven boards is randomly selected from each lot for inspection. A particular batch contains two defective boards; and x is the number of defective boards in the sample. P(x=0) is ___.
A) 0.1315
B) 0.8642
C) 0.0042
D) 0.6134
E) 0.8134
Q2) Aluminum castings are processed in lots of five each. A sample of two castings is randomly selected from each lot for inspection. A particular lot contains one defective casting; and x is the number of defective castings in the sample. P(x=0) is ___.
A) 0.2
B) 0.4
C) 0.6
D) 0.8
E) 1.0
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9
Chapter 8: Continuous Distributions
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Sample Questions
Q1) Suppose x is uniformly distributed over some interval and the mean value ( ) of x is 2 and its variance ( <sup>2</sup>) is 1/3. Find the probability that x is between 2 and 2.5, P(2 \(\le\) x \(\le\) 2.5).
Q2) The area to the left of the mean in any normal distribution is equal to ___. A) the mean
B) 1
C) the variance
D) 0.5
E) -0.5
Q3) Suppose you are working with a data set that is normally distributed with a mean of 400 and a standard deviation of 20. Determine the value of x such that 60% of the values are greater than x.
A) 404.5
B) 395.5
C) 405.0
D) 395.0
E) 415.0
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Chapter 9: Sampling Distributions
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Sample Questions
Q1) Catherine Chao, Director of Marketing Research, needs a sample of Kansas City households to participate in the testing of a new toothpaste package. If 40% of the households in Kansas City prefer the new package, the probability that Catherine's random sample of 300 households will have a sample proportion between 0.35 and 0.45 is ___.
A) 0.9232
B) 0.0768
C) 0.4616
D) 0.0384
E) 0.8976
Q2) The employees in certain division of Cybertronics Inc. need to complete a certification online. On average, it takes 20 hours to complete the coursework and successfully pass all tests, and the standard deviation is 6 hours. If you select a random sample of size 30, the probability that the employees in your sample have taken, on average, more than 20.5 hours is ___.
A) 0.47
B) 0.45
C) 0.41
D) 0.32
E) 0.01
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Page 11
Chapter 10: Confidence Intervals
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Sample Questions
Q1) Life tests performed on a sample of 13 batteries of a new model indicated: (1) an average life of 75 months, and (2) a standard deviation of 5 months. Other battery models, produced by similar processes, have normally distributed life spans. The 98% confidence interval for the population mean life of the new model is ___.
A) 63.37 to 86.63
B) 61.60 to 88.41
C) 71.77 to 78.23
D) 71.28 to 78.72
E) 79.86 to 81.28
Q2) Suppose you want to construct a 98% confidence interval for the mean amount spent on entertainment by first-year university students. If the margin of error is not more than $2.00 and the population standard deviation is $30, determine the least sample size required to construct the confidence interval.
Q3) The z value associated with a two?sided 88% confidence interval is ___.
A) 1.28
B) 1.55
C) 1.17
D) 0.88
E) 1.90
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Page 12
Chapter 11: Hypothesis Testing for Single Populations
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Sample Questions
Q1) Suppose you are testing the null hypothesis that a population mean is less than or equal to 80, against the alternative hypothesis that the population mean is greater than 80. The sample size is 49 and alpha =.05. If the sample mean is 84 and the population standard deviation is 14, the observed z value is ___.
A) 2
B) -2
C) 14
D) -14
E) 49
Q2) Jennifer Cantu, VP of Customer Services at Tri-City Auto Insurance Inc., monitors the claims processing time of the claims division. Her standard includes "a mean processing time of 5 days or less." Each week, her staff checks for compliance by analyzing a random sample of 60 claims. Jennifer's null hypothesis is ___.
A) \(\mu\) > 5
B) \(\sigma\) > 5
C) n = 60
D) \(\mu\) < 5
E) \(\mu\) = 5
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13
Chapter 12: Hypothesis Testing for Two Populations
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Sample Questions
Q1) Hypothesis tests conducted on sets of matched samples are sometimes referred to as correlated t tests.
A)True
B)False
Q2) The difference in two sample means is normally distributed for sample sizes 30, only if the populations are normally distributed.
A)True
B)False
Q3) In a set of matched samples, each data value in one sample is related to or matched with a corresponding data value in the other sample.
A)True
B)False
Q4) If the populations are normally distributed but the population variances are unknown the z statistic can be used as the basis for statistical inferences about the difference in two population means using two independent random samples.
A)True
B)False
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14
Chapter 13: Analysis of Variance Anova
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Sample Questions
Q1) A completely randomized design has been analyzed by using a one-way ANOVA. There are three treatment groups in the design, and each sample size is four. The mean for group 1 is 25.00 and for group 3 it is 27.50. MSE is 3.19. Using =0.05 there is a significant difference between these two groups.
A)True
B)False
Q2) The statistical methods of analysis of variance assume equal sample means. A)True B)False
Q3) In analysis of variance tests a F distribution forms the basis for making the decisions. A)True B)False
Q4) Determining the table value for the F distribution requires two values for degrees of freedom.
A)True B)False
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Page 15
Chapter 14: Linear Correlation and Simple Linear Regression Analysis
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Sample Questions
Q1) The range of admissible values for the coefficient of determination is 1 to +1.
A)True
B)False
Q2) In the simple regression model, y = 21 5x, if the coefficient of determination is 0.81, we can say that the coefficient of correlation between y and x is 0.90.
A)True
B)False
Q3) The difference between the actual y value and the predicted y value found using a regression equation is called the residual.
A)True
B)False
Q4) The numerical value of the coefficient of correlation must be ___.
A) between -1 and +1
B) between -1 and 0
C) between 0 and 1
D) equal to SSE/(n - 2)
E) between 0 and -1
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Chapter 15: Categorical Versus Categorical: Tests
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Sample Questions
Q1) A market researcher is studying the use of coupons by consumers of varying ages. She classifies consumers into four age categories and counts the number of grocery store customers who use at least one coupon during check out. It is expected that data are uniformly distributed across the four age categories. The observed data results in frequencies of 22, 35, 32, and 21. 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
Q2) A chi-square goodness-of-fit test to determine if the observed frequencies in ten categories are Poisson distributed has nine degrees of freedom. Answer False
A)True B)False
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