Managerial Statistics Exam Review
Course Introduction
Managerial Statistics focuses on the application of statistical methods to managerial decision-making processes within organizations. The course covers fundamental concepts such as data collection, descriptive statistics, probability distributions, sampling, estimation, and hypothesis testing. Emphasis is placed on interpreting quantitative data, using software tools, and drawing actionable insights to support strategic planning, operations, and problem-solving in business settings. Through practical examples and case studies, students will learn how to analyze and communicate statistical findings, enhancing their ability to make informed managerial decisions in a dynamic business environment.
Recommended Textbook
Business Statistics in Practice 3rd Canadian Edition by Bruce L. Bowerman
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16 Chapters
2568 Verified Questions
2568 Flashcards
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Page 2
Chapter 1: An Introduction to Business Statistics
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) A sequence of operations that takes inputs and turns them into outputs is a _____. Answer: process
Q2) __________ is a necessary component of a runs plot.
A)Observation over time
B)A qualitative variable
C)Random sampling of the data
D)Voluntary response data
E)A Likert scale survey
Answer: A
Q3) Each customer in a market research study is asked to identify their favourite beverage.The level of measurement for this study would be at the _____ level.
A)nominal
B)ordinal
C)interval
D)ratio
E)quantitative
Answer: A
Q4) A _____ variable can have values that are numbers on the real number line. Answer: quantitative
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Chapter 2: Descriptive Statistics
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Sample Questions
Q1) An independent variable is a variable that can be used to describe,predict,or control a dependent variable.
A)True
B)False
Answer: True
Q2) What is the 90<sup>th</sup> percentile?
A)0.752
B)0.552
C)0.85
D)0.8425
E)0.57
Answer: C
Q3) What is the 10<sup>th</sup> percentile?
A)8
B)22.9
C)18.55
D)9
E)21.25
Answer: A
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Page 4
Chapter 3: Probability
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Sample Questions
Q1) A fair coin is tossed 6 times.What is the probability that at least one head occurs?
Answer: 63/64 \[1 - \left\{ \left( \frac { 1 } { 2 } \right) \left( \frac { 1 } { 2 } \right) \left( \frac { 1 } { 2 } \right) \left( \frac { 1 } { 2 } \right) \left( \frac { 1 } { 2 } \right) \left( \frac { 1 } { 2 } \right) \right\} = \frac { 63 } { 64 }\]
Q2) Are the events "female/not female" and "belongs to a Greek organization" independent?
Answer: No
P(G|F) \(\neq\)
P(G)
Q3) What is the probability that an undergraduate is in a Greek organization given that the undergraduate is a female?
Answer: .127
P(G|F)= .07/.55 = .127
Q4) A and N
Answer: Yes
Q5) What is the probability that there is not a napkin included for a given order?
Answer: 0.053
P(No Napkin)= (.25)(.06)+ (.20)(.02)+ (0.20)(.10)+ (.35)(.04)= .053
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Chapter 4: Discrete Random Variables
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Sample Questions
Q1) A fair die is rolled 10 times.What is the probability that an odd number (1,3,or 5)will occur less than 3 times?
A)0547
B)1172
C)1550
D)7752
E)8450
Q2) Which of the following variables could be a binomial random variable?
A)The number potholes in a 10 km stretch of road.
B)The number of heads you obtain when you flip a coin 10 times.
C)The height of a randomly chosen student.
D)The number of defects in a car's paint.
E)Tomorrow's high temperature.
Q3) Compute the expected value of X.
Q4) If p = .5 and n = 4,then the corresponding binomial distribution is _____.
A)right skewed
B)left skewed
C)symmetric
D)bimodal
E)multimodal
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Chapter 5: Continuous Random Variables
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Sample Questions
Q1) What is the probability that a random variable having a standard normal distribution is between .87 and 1.28?
Q2) What proportion of tests has scores over 90?
Q3) What raw score corresponds to the 70<sup>th</sup> percentile?
Q4) The relationship between the standard normal random variable z and normal random variable X is that:
A)Only the normal random variable X is continuous.
B)Only the standard normal variable z is continuous.
C)The standard normal variable z counts the number of standard deviations that the value of the normal random variable X is away from its mean.
D)The values of the standard normal random variable z cannot be negative.
E)The values of the normal random variable X cannot be negative.
Q5) The z value tells us the number of standard deviations that a value x is from the mean.
A)True
B)False
Q6) A probability distribution that describes the time or space between successive occurrences of an event is a(n)_____ probability distribution.
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Chapter 6: Sampling Distributions
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Sample Questions
Q1) What is the standard deviation of the sample mean?
A)03
B)01
C)1732
D)0577
E)10
Q2) Suppose you take a random sample of size n = 100 from a population with \(\mu\) = 400 and \(\sigma\) = 20.Find P(396 < \(\bar { x }\) < 401).
Q3) If the sampled population is finite and at least _____ times larger than the sample size,then the finite population multiplier is approximately equal to one.
Q4) Find the interval that contains 95.44% of the sample means.
Q5) For non-normal populations,as the sample size ___________________,the distribution of sample means approaches a ________________ distribution. A)decreases;uniform B)increases;normal C)decreases;normal D)increases;uniform E)increases;exponential
Q6) What is the probability that the sample mean will be less than 0.80 seconds?
Page 8
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Chapter 7: Confidence Intervals
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Sample Questions
Q1) The average customer waiting time at a fast food restaurant has been 7.5 minutes.The customer waiting time has a normal distribution.The manager claims that the use of a new system will decrease average customer waiting time.What is the null and alternative hypothesis for this scenario?
A)H<sub>0</sub>: = 7.5 and H<sub>a</sub> 7.5
B)H<sub>0</sub>: 7.5 and H<sub>a</sub> > 7.5
C)H<sub>0</sub>: 7.5 and H<sub>a</sub> < 7.5
D)H<sub>0</sub>: > 7.5 and H<sub>a</sub> 7.5
E)H<sub>0</sub>: > 7.5 and H<sub>a</sub> 7.5
Q2) The _____ hypothesis is not rejected unless there is sufficient sample evidence to do so.
Q3) The null and alternative hypothesis to test if the average time to complete the test had changed from 120 minutes is _____.
A)H<sub>0</sub>: µ = 120 H<sub>a</sub>: µ 120
B)H<sub>0</sub>: µ 120 H<sub>a</sub>: µ < 120
C)H<sub>0</sub>: µ 120 H<sub>a</sub>: µ > 120
D)H<sub>0</sub>: µ 120 H<sub>a</sub>: µ = 120
E)H<sub>0</sub>: µ 118 H<sub>a</sub>: µ < 118
Q4) Write the null hypothesis.
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Chapter 8: Hypothesis Testing
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Sample Questions
Q1) Consider testing a hypothesis about the mean of a normally distributed population with unknown standard deviation.If n = 20,the correct test statistic to use is based on the ____ distribution.
Q2) What is the critical value for this test at alpha = .05?
Q3) The appropriate test statistic to test the hypotheses is _____.
A)2.97 B)-2.97 C)2.68 D)3.50 E)-3.50
Q4) What is the value of the computed F-statistic for testing equality of population variances where s<sub>1</sub><sup>2</sup> = .004,s<sub>2</sub><sup>2</sup> = .002?
Consider H<sub>A</sub>: <sub>1</sub><sup>2</sup> > <sub>2</sub><sup>2</sup>
Q5) Calculate the t statistic for testing equality of means where \(\bar { X }\) <sub>1</sub> = 8.2, \(\bar { X }\) <sub>2</sub> = 11.3,s<sub>1</sub><sup>2</sup> = 5.4,s<sub>2</sub><sup>2</sup> = 5.2,n<sub>1</sub> = 6,n<sub>2</sub> = 7.Assume equal population variances. t = -2.63
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Chapter 9: Statistical Inferences Based on Two Samples
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Sample Questions
Q1) What is a 95 percent confidence interval for \(\mu\) when n = 10, \(\bar { x }\) = 34.1,and s = 3.0? Assume population normality.
Q2) As the stated confidence level decreases,the width of the confidence interval
Q3) A researcher is investigating the popularity of new packaging for a product.In a random sample of 300 people from Toronto,63 preferred the new packaging.Of 400 people from Montreal,52 preferred the new packaging.Find a 90 percent confidence interval for the difference between the proportions of people who prefer the new packaging in Toronto and Montreal.
Q4) The quality control manager of a tire company wishes to estimate the tensile strength of a standard size of rubber used to make a class of radial tires.A random sample of 61 pieces of rubber from different production batches is subjected to a stress test.The test measures the force needed to break the rubber.According to the sample results,the average pressure is 238.4 and the standard deviation is 35.Determine the 98% confidence interval.
Q5) Of a random sample of 600 trucks at a bridge,114 had bad signal lights.Construct a 95 percent confidence interval for the percentage of trucks that had bad signal lights.
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Chapter 10: Experimental Design and Analysis of Variance
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155 Flashcards
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Sample Questions
Q1) When using a randomized block design,each block is used exactly once to measure the effect of each and every treatment.
A)True
B)False
Q2) The 95% individual confidence interval for \(\mu _ { 1 } - \mu _ { 2 }\) will always be narrower than the Tukey 95% simultaneous confidence interval for \(\mu _ { 1 } - \mu _ { 2 }\)
.
A)True
B)False
Q3) In performing a one-way ANOVA for a completely randomized design,the _________ mean square measures the variability of the group means.
Q4) Is there a significant difference in the annual sales of the five company categories?
Q5) What is the blocks mean square?
Q6) What is the total sum of squares?
Q7) What is the block mean square?
Q8) Compute an individual 95% confidence interval for the first group mean.
Page 12
Q9) What is the calculated F statistic for blocks?
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Chapter 11: Correlation Coefficient and Simple Linear
Regression Analysis
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Sample Questions
Q1) Determine the 95% prediction interval for the mean value of y when x = 35 Givens: x = 277 and x<sup>2</sup> = 8705
Q2) Find the estimated slope.
Q3) What is the value of SSxx?
A)7.368
B)8.748
C)1.844
D)4.745
E)5.140
Q4) While the range for r<sup>2</sup> is between 0 and 1,the range for r is between ____ and ____.
Q5) The ____________________ is the proportion of the total variation in the dependent variable explained by the regression model.
Q6) What is the predicted value of y when x = 1,000?
A)2813
B)1120
C)2289
D)1092
E)1000
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Chapter 12: Multiple Regression and Model Building
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Sample Questions
Q1) As we increase the number of independent variables in a multiple regression model,the F statistic will _____ increase.
A)always
B)sometimes
C)never
Q2) What is the adjusted R<sup>2</sup>?
A)31.308%
B)76.95%
C)87.72%
D)72.63%
E)23.1%
Q3) A t-test is used in testing the significance of an individual independent variable.
A)True
B)False
Q4) Determine the 95% interval for <sub>4</sub> and interpret its meaning.
Q5) Calculate the adjusted R<sup>2</sup>.
Q6) What is the explained variation?
Q7) Interpret the regression coefficients for the variables advertising,price,and store.
Page 14
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Chapter 13: Nonparametric Methods
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Sample Questions
Q1) Nonparametric tests can be more powerful than the corresponding t or F tests if the population distribution is highly skewed or not normal.
A)True
B)False
Q2) What is the appropriate null and alternative hypotheses for the claim that they distribute the same amount of coffee?
Q3) If H<sub>a</sub>: M<sub>d</sub> < 6,then the value of S is:
A)0
B)1
C)2
D)3
E)4
Q4) At a significance level of .05,the rejection point condition for the hypothesis test is:
A)Reject H<sub>0</sub> if c<sup>2</sup> > 9.3484
B)Reject H<sub>0</sub> if c<sup>2</sup> > 30.1435
C)Reject H<sub>0</sub> if c<sup>2</sup> > 7.81473
D)Reject H<sub>0</sub> if c<sup>2</sup> > .341846
E)Reject H<sub>0</sub> if c<sup>2</sup> > 32.8523
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Chapter 14: Chi-Square Tests
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Sample Questions
Q1) Calculate the value of the chi-square test statistic?
Q2) Consider the 3 × 2 contingency table below.What is the expected value for A<sub>2</sub>B<sub>1</sub>? \[\begin{array} { c c c } & { \text { Factor B } } \\ \text { Factor A } & B _ { 1 } & B _ { 2 } \\ \mathrm{A}_{1} & 16 & 14 \\ \mathrm{~A}_{2} & 15 & 25 \\ \mathrm{~A}_{3} & 9 & 21 \end{array}\]
A)12
B)14
C)16
D)18
E)20
Q3) The trials of a multinomial probability are assumed to be dependent.
A)True
B)False
Q4) Calculate the expected frequency for the interval 0-39.99.
Q5) Determine the expected frequencies for the chi-square test of independence.
Page 16
Q6) Calculate the chi-square statistic for this test of independence.
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Chapter 15: Decision Theory
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Sample Questions
Q1) What is the probability that weather conditions are poor,given that the demand is high? What is the probability that weather conditions are poor,given that the demand is medium? What is the probability that weather conditions are poor,given that the demand is low?
Q2) The _______________________ is the difference between the expected payoff that would have been realized had the best alternative action been selected if we know which state of nature has occurred and the expected payoff under risk.
Q3) The _______________________ is the difference between the expected payoff that would have been realized had the best alternative action been selected if we know which state of nature has occurred and the expected payoff under risk.
A)maximax criterion
B)maximin criterion
C)expected utility
D)expected value of perfect information
E)expected value of sample information
Q4) Construct the revised probability table for poor weather conditions and find the probability of high demand given that the weather conditions are poor.
Q5) What alternative action should be selected according to maximax criterion?
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Chapter 16: Time Series Forecasting
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Sample Questions
Q1) The Laspeyres index and the Paasche index are both examples of _________ aggregate price indexes.
Q2) What is the predicted value of the fund in the period 3,and period 7?
Q3) Simple exponential smoothing is an appropriate method for prediction purposes when there is a significant trend present in a time series data.
A)True
B)False
Q4) If a time series has constant seasonal variation,then the forecaster should use the multiplicative decomposition method to forecast future values of the time series.
A)True
B)False
Q5) Although the ________ index allows us to compare each period to the base period,it is difficult to compare the index at other points in time.
Q6) Calculate the aggregate price index.
Q7) When using simple exponential smoothing,the more recent the time series observation,the _________ its corresponding weight.
Q8) Compute the Paasche index using 1990 as the base year.
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