Statistical Methods for Business Exam Review
Course Introduction
Statistical Methods for Business introduces students to the fundamental concepts and techniques of statistics as they apply to business decision-making. The course covers data collection, organization, and analysis, emphasizing descriptive statistics, probability distributions, sampling methods, hypothesis testing, regression analysis, and inference. Through real-world examples and case studies, students develop practical skills in interpreting data and applying statistical reasoning to solve business problems, supporting evidence-based management and strategic planning in various business environments.
Recommended Textbook
Business Statistics A Decision Making Approach 8th Edition by David F. Groebner
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19 Chapters
2260 Verified Questions
2260 Flashcards
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Page 2
Chapter 1: The Where, why, and How of Data Collection
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167 Verified Questions
167 Flashcards
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Sample Questions
Q1) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about a large data set based on a subset of the data.
A)True
B)False
Answer: True
Q2) 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.Which of the following best describes the overall data set that was generated from the study?
A)Cross-sectional data
B)Time-series data
C)Nominal data
D)Quantitative data
Answer: A
Q3) Open the data file on your CD-ROM called AirlinePassengers.Indicate the level of data measurement for each variable in the data set.
Answer: 11ea7a43_e9c8_0a78_89bd_43e5eafa3540_TB3933_00
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Chapter 2: Graphs,charts and Tablesdescribing Your Data
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) An ogive is a graph that shows cumulative relative frequency.
A)True
B)False
Answer: True
Q2) If two variables are graphed on the same line chart,two separate scales are always required.
A)True
B)False
Answer: False
Q3) Frequency distributions are specifically for analyzing discrete data.
A)True
B)False
Answer: False
Q4) In Excel,joint frequency distributions can be generated using the Pivot Table feature under the Data tab.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Describing Data Using Numerical Measures
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) In a recent study of the sales prices of houses in a Midwestern city,the mean sales price has been reported to be $167,811 while the median sales price was $155,600.From this information,you can determine that the data involved in the study are left-skewed.
A)True
B)False Answer: False
Q2) The sample mean is an estimate of and may be either higher or lower than depending on the sample.
A)True
B)False Answer: True
Q3) A major automobile maker has two models of sedans.The first model has been shown to get an average of 27 mpg on the highway with a standard deviation equal to 5 mpg.The second model gets 33 mpg on average with a standard deviation of 8 mpg.Based on this information the first car model is relatively more variable than the second car model.
A)True
B)False Answer: False
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Page 5
Chapter 4: Using Probability and Probability Distributions
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) When the salesperson makes a sale,there are three possible sales levels: large,medium,and small.The probability of a large sale is 0.20 and the chance of a medium sale is 0.60.If a salesperson makes two sales,the probability that at least one is large is 0.36.
A)True
B)False
Q2) Two football teams play in the Super Bowl.The event of team A winning and the event of team B winning can be said to be mutually exclusive.
A)True
B)False
Q3) List three methods of assessing probabilities and indicate which is least likely to be used in business decision making.
Q4) At gambling casinos all over the country,a popular dice game is called craps.The probability of a player winning at this game can be assessed using:
A)subjective assessment.
B)classical probability.
C)relative frequency of occurrence.
D)None of the above.
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Chapter 5: Discrete Probability Distributions
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) Holmstead Company owns two small engine repair stores.The expected value of the number of complaints received per month at store 1 is 4.5 complaints.Further,the expected number of complaints per month for store 1 and store 2 combined is 13.6.This means the expected number of complaints per month at store 2 must be 9.1 complaints.
A)True
B)False
Q2) The primary application for the hypergeometric probability distribution is in situations where the sampling is done without replacement from a finite population.
A)True
B)False
Q3) Six managers at a company all enjoy golf.Each Saturday,four of the six get together for 18 holes of golf.They have decided to set up a schedule so that the same foursome does not play twice before all possible foursomes have played.The number of weekends that will pass before the same group would play twice is 15.
A)True
B)False
Q4) Explain what the expected value of a discrete random variable measures.
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Chapter 6: Introduction to Continuous Probability
Distributions
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90 Verified Questions
90 Flashcards
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Sample Questions
Q1) 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.If two students were selected at random,what is the probability that they would both read at less than 400 words per minute?
A)0.4938
B)0.0062
C)0.00004
D)0.2438
Q2) It is assumed that the time failures for an electronic component are exponentially distributed with a mean of 50 hours between consecutive failures.What is the probability that a component will be functioning after 60 hours?
A)Approximately 0.30
B)About 0.70
C)About 0.21
D)About 0.49
Q3) The fares received by taxi drivers working for the City Taxi line are normally distributed with a mean of $12.50 and a standard deviation of $3.25.Based on this information,what is the probability that a specific fare will exceed $15.00?
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Chapter 7: Introduction to Sampling Distributions
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) The reason that a population mean and the mean of a random sample selected from that population might be different is that the sample mean is found by dividing by n-1 while the population mean is found by dividing by n.
A)True
B)False
Q2) If a population mean is equal to 200,the sample mean for a random sample selected from the population is about as likely to be higher or lower than 200.
A)True
B)False
Q3) Explain the impact of the size of the sample on the shape of the sampling distribution.
Q4) If you are sampling from a very large population,a doubling of the sample size will reduce the standard error of the sampling distribution by one-fourth.
A)True
B)False
Q5) Explain what is meant by the concept of sampling distribution.
Q6) Indicate why the Central Limit Theorem is so important in the application of statistical analysis.
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Chapter 8: Estimating Single Population Parameters
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) A grocery store manager is interested in estimating the mean weight of apples received in a shipment.If she wishes to have the estimate be within ± .05 pound with 90 percent confidence,the sample size should be 103 apples if she believes that the standard deviation is .08 pounds.
A)True
B)False
Q2) A human resources manager wishes to estimate the proportion of employees in her large company who have supplemental health insurance.What is the largest size sample she should select if she wants 95 percent confidence and a margin of error of ± 0.01?
Q3) A random sample of 100 boxes of cereal had a sample mean weight of 396 grams.The standard deviation is known to be 5 grams.The upper end of the confidence interval for the mean is 405.8 grams.
A)True
B)False
Q4) When determining sample size for a proportion,the farther that is from 0.5,the smaller the resulting sample size will be.
A)True
B)False
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Chapter 9: Introduction to Hypothesis Testing
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) The null and alternate hypotheses must be opposites of each other.
A)True
B)False
Q2) A consumer group plans to test whether a new passenger car that is advertised to have a mean highway miles per gallon of at least 33 actually meets this level.They plan to test the hypothesis using a significance level of 0.05 and a sample size of n = 100 cars.It is believed that the population standard deviation is 3 mpg.Based upon this information,if the "true" population mean is 32.0 mpg,what is the probability that the test will lead the consumer group to "accept" the claimed mileage for this car?
A)About 0.45
B)Approximately 0.0455
C)About 0.9545
D)None of the above.
Q3) If the Type I error ( )for a given test is to be decreased,then for a fixed sample size n:
A)the Type II error ( )will also decrease.
B)the Type II error ( )will increase.
C)the power of the test will increase.
D)a one-tailed test must be utilized.
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11
Chapter 10: Estimation and Hypothesis Testing for Two
Population
Parameters
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) Under what conditions can the t-distribution be correctly employed to test the difference between two population means?
A)When the samples from the two populations are small and the population variances are unknown
B)When the two populations of interest are assumed to be normally distributed
C)When the population variances are assumed to be equal
D)All of the above.
Q2) The NCAA is interested in estimating the difference in mean number of daily training hours for men and women athletes on college campuses.They want 95 percent confidence and will select a sample of 10 men and 10 women for the study.If the NCAA assumes that the population standard deviations are known,the critical value for the confidence interval is t = 2.1009.
A)True
B)False
Q3) When performing a hypothesis test for the difference in the means of two independent populations,where the standard deviations are known,the variances must be assumed equal.
A)True
B)False
Page 12
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Chapter 11: Hypothesis Tests and Estimation for Population
Variances
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) 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
Q2) The F test statistic for testing whether the variances of two populations are the same is always positive.
A)True
B)False
Q3) The test statistic that is used when testing a null hypothesis for a population variance is the standard normal z-value.
A)True
B)False
Q4) When conducting a one-tailed hypothesis test of a population variance using a sample size of n = 24 and a 0.10 level of significance,the critical value is:
A)32.0069.
B)35.1725.
C)33.1962.
D)36.4150.
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Chapter 12: Analysis of Variance
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) Three brands of running shoes are each tested by 10 different runners.The amount of wear on the sole of the shoes is then measured.The objective is to determine if there is any difference among the three brands of shoes based on how long the soles last.This means that there is one factor with 10 levels and 3 blocks.
A)True
B)False
Q2) To test for the stopping distances of the four brake systems,10 of the same make and model of car are selected randomly and then are assigned randomly to each of four brake systems.This is a randomized complete block design.
A)True
B)False
Q3) In one-way analysis of variance,the within-sample variation is not affected by whether the null hypothesis is true on not.
A)True
B)False
Q4) Under what circumstances would you use a randomized complete block analysis of variance design instead of a one-way analysis of variance?
Q5) What are the assumptions for a one-way analysis of variance design?
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Page 14
Chapter 13: Goodness-Of-Fit Tests and Contingency Analysis
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) Contingency analysis can be used when the level of data measurement is nominal or ordinal.
A)True
B)False
Q2) In performing chi-square contingency analysis,to overcome a small expected cell frequency problem,we:
A)combine the categories of the row and/or column variables.
B)increase the sample size.
C)Both A and B.
D)None of the above.
Q3) If a sample with n = 60 subjects distributed over 3 categories was selected,a chi-square test for goodness-of-fit will be used.How many degrees of freedom will be used in determining the chi-square test statistic?
A)1
B)2
C)16
D)64
Q4) Explain the basic logic behind the chi-square goodness-of-fit test.
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Chapter 14: Introduction to Linear Regression and Correlation Analysis
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) What factors are of importance to an analyst when linear regression analysis is used for descriptive purposes?
Q2) If two variables are spuriously correlated,it means that the correlation coefficient between them is near zero.
A)True
B)False
Q3) A scatter plot is useful for identifying a linear relationship between the independent and dependent variable,but it is not particularly useful if the relationship is curvilinear.
A)True
B)False
Q4) If the correlation between two variables is known to be statistically significant at the 0.05 level,then the regression slope coefficient will also be significant at the 0.05 level.
A)True
B)False
Q5) Explain what the correlation coefficient measures and some detail of the key issues associated with it.Be sure to also discuss the concept of spurious correlation.
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Chapter 15: Multiple Regression Analysis and Model Building
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) The correlation matrix is an effective means of determining whether any of the independent variables has a curvilinear relationship with the dependent variable.
A)True
B)False
Q2) Standard stepwise regression
A)is the same as forward selection.
B)involves trying more regressions that the best subsets method.
C)always finds the best regression model.
D)combines attributes of both forward selection and backward elimination.
Q3) A decision maker has five potential independent variables with which to build a regression model to explain the variation in the dependent variable.At step 1,variable x<sub>3</sub> enters the regression model.Which of the following indicates which of the four remaining independent variables will be next to enter the model?
A)The variable that has the next highest correlation with the dependent variable
B)The variable that will provide the next largest value for the slope coefficient
C)The variable with the highest coefficient of partial determination
D)Can't be determined without seeing the correlation matrix.
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Page 17
Chapter 16: Analyzing and Forecasting Time-Series Data
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) In order for a time series to exhibit a seasonal component,the data must be measured in periods as short or shorter than quarterly.
A)True
B)False
Q2) In comparing two or more forecasting models,the MAD value is useful in determining how successful the models were in fitting historical data.
A)True
B)False
Q3) If time-series data exhibit a seasonal pattern,which of the following approaches could be used to compute season indexes?
A)The exponential smoothing technique
B)The multiplicative model
C)The Pearson product-moment approach
D)None of the above.
Q4) To compare one value measured at one point in time with other values measured at different points in time,index numbers must be used.
A)True
B)False
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Chapter 17: Introduction to Nonparametric Statistics
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Sample Questions
Q1) In conducting a Mann-Whitney U test when the sample size is greater than 20,the U test statistic can be assumed normally distributed.
A)True
B)False
Q2) The basic logic of the Wilcoxon signed rank test is that if about half the data values fall above the hypothesized median,and about half fall below,the null hypothesis should not be rejected.
A)True
B)False
Q3) The Wilcoxon signed rank test is used for testing hypotheses about a population median if the data are at nominal level.
A)True
B)False
Q4) The critical value for a Kruskal Wallis test is an F value from the F-distribution.
A)True
B)False
Q5) Under what conditions should a decision maker use a nonparametric statistical procedure?
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Chapter 18: Introduction to Quality and Statistical Process
Control
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) The Deming cycle is largely a qualitative approach to problem solving that relies on a decision maker's experience.
A)True
B)False
Q2) In seeking ways to improve a process,it may be helpful to determine if two quantitative variables are related.A scatter plot would the appropriate to tool to use.
A)True
B)False
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) Total Quality Management and Kaizen are consistent concepts.
A)True
B)False
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Chapter 19: Introduction to Decision Analysis
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Sample Questions
Q1) Sensitivity analysis for a decision tree involves analyzing how sensitive decisions are to the probability values used.
A)True
B)False
Q2) Payoff and state of nature are two different terms for the same thing.
A)True
B)False
Q3) The complexity of a decision is affected by the number of alternatives,the number of possible outcomes,and the general level of uncertainty.
A)True
B)False
Q4) When is decision analysis most useful?
A)For decisions that are not complex
B)For decisions that are complex
C)For decision that affect only one functional area of an organization
D)For decisions that are made in an environment of certainty
Q5) The two primary decision environments are certainty and uncertainty.
A)True
B)False
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