Course Introduction
Managerial Statistics Study Guide
Questions
Managerial Statistics introduces students to statistical tools and techniques essential for data-driven decision-making in business environments. The course covers key topics such as data collection and analysis, descriptive statistics, probability distributions, hypothesis testing, regression analysis, and forecasting. Emphasis is placed on interpreting results and applying statistical thinking to solve managerial problems in areas such as marketing, finance, operations, and strategy. Through practical case studies and hands-on exercises, students develop analytical skills needed to make informed decisions in uncertain and complex business situations.
Recommended Textbook Business Statistics 9th Edition by David F. Groebner
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2372 Flashcards
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Page 2
Chapter 1: The Where,Why,and How of Data Collection
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Sample Questions
Q1) The human resources department at a major high tech company recently conducted an employee satisfaction survey of 100 of its 3,000 employees.Data were collected on such variables as age,gender,marital status,current salary,level of overall satisfaction on a scale from 1 to 5,number of years with the company,and job title.Considering the age variable where employees were asked to list their age at their last birthday,which of the following best describes the level of data measurement for that variable?
A)Interval level
B)Nominal level
C)Ratio level
D)Cross-sectional data
Answer: C
Q2) Recently,a bank manager pulled a sample of customer accounts and recorded data for two variables,checking account balance and total number of transactions during the previous 30 days.The data collected would be considered time-series data.
A)True
B)False
Answer: False
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Chapter 2: Graphs,Charts and Tablesdescribing Your Data
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Sample Questions
Q1) The sales manager at Western Furniture Company tracked data on the number of customers who came into the store each day and the total dollar volume of sales at the store during the same day.She is considering putting together a report for top management and wishes to show the relationship between these two variables.Which of the following graphs would likely be most useful? She has a sample of 36 days worth of data.
A)Scatter diagram
B)Bar chart
C)Frequency histogram
D)Pie chart
Answer: A
Q2) If you wish to construct a graph of a relative frequency distribution,you would most likely construct an ogive.
A)True
B)False
Answer: False
Q3) A scatter diagram is a line graph without the points connected by a line.
A)True
B)False
Answer: False
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Chapter 3: Describing Data Using Numerical Measures
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Sample Questions
Q1) Incomes in a particular market area are known to be right-skewed with a mean equal to $33,100.In a report issued recently,a manager stated that at least 89 percent of all incomes are in the range of $26,700 to $39,500,and this was based on Tchebysheff's theorem.Given these facts,what is the standard deviation for the incomes in this market area?
A)Approximately $6,400
B)Approximately $3,200
C)Approximately $2,133
D)Approximately $4266
Answer: C
Q2) A sample of people who have attended a college football game at your university has a mean = 3.2 members in their family.The mode number of family members is 2 and the median number is 2.0.Based on this information:
A)the population mean exceeds 3.2.
B)the distribution is bell-shaped.
C)the distribution is right-skewed.
D)the distribution is left-skewed.
Answer: C
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Chapter 4: Introduction to Probability
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Sample Questions
Q1) Hubble Construction Company has submitted a bid on a state government project that is to be funded by the federal government's stimulus money in Arizona.The price of the bid was predetermined in the bid specifications.The contract is to be awarded on the basis of a blind drawing from those who have bid.Five other companies have also submitted bids. What is the probability of the Hubble Construction Company winning the bid?
A)0.2778
B)0.1667
C)0.6944
D)0.0278
Q2) What method of probability assessment would most likely be used to assess the probability that a major earthquake will occur in California in the next three years?
A)Classical probability based on the ratio of the number of ways the event can occur
B)Relative frequency based on previous history
C)Subjective probability based on expert opinion
D)Independent probability based on two unrelated outcomes
Q3) List three methods of assessing probabilities and indicate which is least likely to be used in business decision making.
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Chapter 5: Discrete Probability Distributions
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Sample Questions
Q1) A mid-management team consists of 10 people,6 males and 4 females.Recently top management selected 4 people from this team for promotion.It was stated that the selections were based on random selection.All 4 people selected were males.The females are upset and believe that there may have been more than random selection involved here.What probability distribution should be used to analyze this situation and what is the probability that all 4 promotions would go to males if the selections were random? Do you believe that the females have a valid complaint in this situation?
Q2) The random variable x is the number of customers arriving at the service desk of a local car dealership over an interval of 10 minutes.It is known that the average number of arrivals in 10 minutes is 5.3.The probability that there are less than 3 arrivals in any 10 minutes is:
A).0659
B).0948
C).1016
D).1239
Q3) What is the difference between a discrete random variable and a continuous random variable?
Q4) Explain what the expected value of a discrete random variable measures.
Q5) Under what conditions is the binomial distribution symmetric?
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Chapter 6: Introduction to Continuous Probability
Distributions
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Sample Questions
Q1) For a standardized normal distribution,calculate P(0.00 < z < 2.33).
A)0.7181
B)0.5099
C)0.4901
D)0.2819
Q2) Students who have completed a speed reading course have reading speeds that are normally distributed with a mean of 950 words per minute and a standard deviation equal to 220 words per minute.Based on this information,what is the probability of a student reading at more than 1400 words per minute after finishing the course?
A)0.0202
B)0.5207
C)0.4798
D)0.9798
Q3) All symmetric distributions can be assumed normally distributed. A)True
B)False
Q4) The parameters of a normal distribution are the mean and the standard deviation. A)True
B)False
8
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Chapter 7: Introduction to Sampling Distributions
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Sample Questions
Q1) Which of the following statements is not consistent with the Central Limit Theorem?
A)The Central Limit Theorem applies without regard to the size of the sample.
B)The Central Limit Theorem applies to non-normal distributions.
C)The Central Limit Theorem indicates that the sampling distribution will be approximately normal when the sample size is sufficiently large.
D)The Central Limit Theorem indicates that the mean of the sampling distribution will be equal to the population mean.
Q2) A population with a mean of 1,250 and a standard deviation of 400 is known to be highly skewed to the right.If a random sample of 64 items is selected from the population,what is the probability that the sample mean will be less than 1,325?
A)0.8981
B)0.8141
C)0.7141
D)0.9332
Q3) How would you respond to a statement that says that by increasing the sample size,the amount of sampling error will be decreased?
Q4) Explain what is meant by the concept of sampling distribution.
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Chapter 8: Estimating Single Population Parameters
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Sample Questions
Q1) When a decision maker determines the required sample size for estimating a population mean,a change in the confidence level will result in a change in the required sample size,provided that the margin of error is also modified accordingly.
A)True
B)False
Q2) For a given sample size and a given confidence level,the closer p is to 1.0,the greater the margin of error will be.
A)True
B)False
Q3) Recently,a marketing research company reported that based on a random sample of 300 households the mean number of trips to a major shopping mall per month per household is 4.12 trips.This value is referred to as a parameter and is subject to sampling error.
A)True
B)False
Q4) If the population is not normally distributed,the t-distribution cannot be used.
A)True
B)False
Q5) Under what circumstances would you wish to select a pilot sample?
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Chapter 9: Introduction to Hypothesis Testing
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Sample Questions
Q1) What is meant by the terms Type I and Type II statistical error?
Q2) A major package delivery company claims that at least 95 percent of the packages it delivers reach the destination on time.As part of the evidence in a lawsuit against the package company,a random sample of n = 200 packages was selected.A total of 188 of these packages were delivered on time.Using a significance level of 0.05,the critical value for this hypothesis test is approximately 0.90.
A)True B)False
Q3) A company makes a device that can be fitted to automobile engines to improve the mileage.The company claims that if the device is installed,owners will observe a mean increase of more than 3.0 mpg.Assuming that the population standard deviation of increase is known to be 0.75 mpg,and a sample of size 64 cars is selected,what is the probability of "accepting" the null hypothesis if the true population mean is 3.10 mpg increase? Assume that the test will be performed using a 0.05 level of significance.
Q4) Type II error is failing to reject the null hypothesis when the null is actually false. A)True B)False
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Chapter 10: Estimation and Hypothesis Testing for Two
Population Parameters
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Sample Questions
Q1) If we are testing for the difference between the means of two independent populations with samples of n<sub>1</sub> = 20 and n<sub>2</sub> = 20,the number of degrees of freedom is equal to:
A)39
B)38
C)19
D)18
Q2) To find the pooled standard deviation involves taking a weighted average of the two sample variances,then finding its square root.
A)True
B)False
Q3) To find a confidence interval for the difference between the means of independent samples,when the variances are unknown but assumed equal,the sample sizes of the two groups must be the same.
A)True
B)False
Q4) When estimating the difference between two population means,when should the normal distribution be used and when should the t-distribution be used?
Page 12
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Chapter 11: Hypothesis Tests and Estimation for Population
Variances
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Sample Questions
Q1) If a one-tailed F-test is employed when testing a null hypothesis about two population variances,the test statistic is an F-value formed by taking the ratio of the two sample variances so that the sample variance predicted to be larger is placed in the numerator.
A)True
B)False
Q2) The null hypothesis that two population variances are equal will tend to be rejected if the ratio of the sample variances from each population is substantially larger than 1.0.
A)True
B)False
Q3) In a test for determining whether two population variances are the same or different,the larger the sample sizes from the two populations,the lower will be the chance of making a Type I statistical error.
A)True
B)False
Q4) The F-distribution can only have positive values.
A)True
B)False
13
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Chapter 12: Analysis of Variance
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Sample Questions
Q1) 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
Q2) Six food critics each visited and rated four different restaurants.Each critic visited each restaurant on three separate occasions and recorded a score for each visit.The number of degrees of freedom in the interaction row of the ANOVA table is 15.
A)True
B)False
Q3) In a one-way analysis of variance test,the following null and alternative hypotheses are appropriate:
H<sub>0</sub> : <sub>1</sub> = <sub>2</sub> = <sub>3</sub>
H<sub> </sub> : <sub>1</sub> <sub>2</sub> <sub>3</sub>
A)True
B)False
Q4) What are the assumptions for a one-way analysis of variance design?
Q5) What is meant by the term balanced design in an analysis of variance application?
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Page 14
Chapter 13: Goodness-Of-Fit Tests and Contingency Analysis
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Sample Questions
Q1) The logic behind the chi-square goodness-of-fit test is based on determining how far the actual observed frequencies are from the expected frequencies.
A)True
B)False
Q2) How can the degrees of freedom be found in a contingency table with cross-classified data?
A)When df are equal to rows minus columns
B)When df are equal to rows multiplied by columns
C)When df are equal to rows minus 1 multiplied by columns minus 1
D)Total number of cell minus 1
Q3) In conducting a test of independence for a contingency table that has 4 rows and 3 columns,the number of degrees of freedom is 11.
A)True
B)False
Q4) Unlike the case of goodness-of-fit testing,with contingency analysis there is no restriction on the minimum size for an expected cell frequency.
A)True
B)False
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Chapter 14: Introduction to Linear Regression and Correlation Analysis
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Sample Questions
Q1) The standard error of the estimate for a simple linear regression model measures the variation in the slope coefficient from sample to sample.
A)True
B)False
Q2) If two variables are highly correlated,it not only means that they are linearly related,it also means that a change in one variable will cause a change in the other variable.
A)True
B)False
Q3) The scatter plot is a two dimensional graph that is used to graphically represent the relationship between two variables.
A)True
B)False
Q4) When using regression analysis for descriptive purposes,which of the following is of importance?
A)The size of the regression slope coefficient
B)The sign of the regression slope coefficient
C)The standard error of the regression slope coefficient
D)All of the above
Page 16
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Chapter 15: Multiple Regression Analysis and Model Building
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Sample Questions
Q1) In a multiple regression model,which of the following is true?
A)The coefficient of determination will be equal to the square of the highest correlation in the correlation matrix.
B)Adding variables that have a low correlation with the dependent variable will cause the R-square value to decline.
C)The sum of the residuals computed for the least squares regression equation will be zero.
D)The adjusted R-square might be higher or lower than the value of the R-square.
Q2) When an independent variable,that has a positive correlation with the dependent variable,receives a negative slope in a multiple regression,this is probably caused by multicollinearity.
A)True
B)False
Q3) A model is a representation of an actual system.
A)True
B)False
Q4) Models can be specified as linear or nonlinear.
A)True
B)False
17
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Chapter 16: Analyzing and Forecasting Time-Series Data
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Sample Questions
Q1) If a company has 12 years of annual sales data and is in need of a three-year forecast,which of the following forecasting techniques might be useful?
A)Forecast generalization
B)Seasonality processing
C)Regression-based trend forecasting
D)Random component analysis
Q2) In a simple exponential smoothing model,which of the following statements is true?
A)The forecast values are determined by computing a moving average of the previous 4 data periods if we are working with quarterly data.
B)The larger the smoothing constant,the more smoothing that takes place in the model.
C)If the data contain a lot of random or irregular ups and downs,then a larger smoothing constant should be used in an attempt to model these fluctuations.
D)More smoothing of the data will take place if a smoothing constant value close to zero is used.
Q3) In analyzing a forecast model,what is the main advantage of using the MAD instead of the MSE?
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Chapter 17: Introduction to Nonparametric Statistics
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Sample Questions
Q1) The Wilcoxon signed rank test is used to test hypotheses about the population median.
A)True
B)False
Q2) In conducting the Wilcoxon Matched-Pairs Signed Rank test,the difference between each pair of values must be found prior to conducting any ranking.
A)True
B)False
Q3) In a Kruskal-Wallis test when ties occur,each observation is given the ________ for which it is tied.
A)highest rank
B)lowest rank
C)mean rank
D)median rank
Q4) In a large sample test about a single population median,it is appropriate to employ the standard normal distribution so long as the population is also normally distributed.
A)True
B)False
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19
Chapter 18: Introduction to Quality and Statistical Process
Control
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Sample Questions
Q1) Both p-charts and c-charts are designed for use when the data we are working with are referred to as attribute data.
A)True
B)False
Q2) Which of the following is not among the most common sources of variation?
A)People
B)Materials
C)Methods
D)Quotas
Q3) A major airline is interested in monitoring customer satisfaction with its baggage handling process.To do so,each day the airline randomly selects 100 customers and surveys them to determine if they are satisfied or not with the service provided.After 20 samples,a total of 260 unsatisfied customers were surveyed.
a.If the airline wishes to use a control chart,which chart would you recommend and why?
b.Determine the 3-sigma control limits for the appropriate control chart.
Q4) Referring to the SPC chart signals that a process is out of control,what type of problem does each signal indicate? List the signals.
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