Statistics for Management Exam Solutions
Course Introduction
Statistics for Management provides students with the foundational concepts and analytical tools necessary to interpret and manage data in a business context. The course covers descriptive statistics, probability distributions, sampling methods, hypothesis testing, correlation, regression analysis, and decision-making under uncertainty. Emphasis is placed on real-world applications, enabling students to analyze business scenarios, make informed managerial decisions, and effectively communicate statistical findings. Through case studies and hands-on exercises, learners develop critical thinking skills and the ability to apply statistical techniques to solve complex management problems.
Recommended Textbook
Basic Business Statistics Global Edition 12th edition by Mark Berenson
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Chapter 1: Introduction
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Sample Questions
Q1) The Commissioner of Health in New York State wanted to study malpractice litigation in New York.A sample of 31 thousand medical records was drawn from a population of 2.7 million patients who were discharged during 2010.The proportion of malpractice claims filed from the sample of 31 thousand patients is a ________.
Answer: statistic
Q2) Referring to Table 1-1,the possible responses to the question "How many people are there in your household?" result in
A)a nominal scale variable.
B)an ordinal scale variable.
C)an interval scale variable.
D)a ratio scale variable.
Answer: D
Q3) The classification of student class designation (freshman,sophomore,junior,senior)is an example of
A)a categorical random variable.
B)a discrete random variable.
C)a continuous random variable.
D)a parameter.
Answer: A
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Chapter 2: Organizing and Visualizing Data
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Sample Questions
Q1) Referring to Table 2-15,roughly what percentage of pizza products contains less than 10 grams of fat?
A)3%
B)14%
C)50%
D)75%
Answer: B
Q2) Referring to Table 2-18,if a student is randomly selected,his/her most likely level of satisfaction will be in the 70s among the 40s,50s,60s,70s,80s and 90s.
A)True
B)False
Answer: True
Q3) Referring to Table 2-13,construct a percentage polygon for the detergent data if the corresponding frequency distribution uses "9.0 but less than 10.0" as the first class.
Answer: 11ea308a_b250_a129_a441_fbeba481a253_TB1605_00
Q4) Referring to Table 2-8,the person who has the largest leaf associated with the smallest stem visited the facility ________ times.
Answer: 9
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Chapter 3: Numerical Descriptive Measures
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Sample Questions
Q1) In a perfectly symmetrical bell-shaped "normal" distribution
A)the arithmetic mean equals the median.
B)the median equals the mode.
C)the arithmetic mean equals the mode.
D)All the above.
Answer: D
Q2) Which of the following is sensitive to extreme values?
A)The median
B)The interquartile range
C)The arithmetic mean
D)The 1 quartile
Answer: C
Q3) Which of the following statements about the median is not true?
A)It is more affected by extreme values than the arithmetic mean.
B)It is a measure of central tendency.
C)It is equal to Q .
D)It is equal to the mode in bell-shaped "normal" distributions.
Answer: A
Q4) Referring to Table 3-4,the standard deviation of the customs data is ________.
Answer: 4.3
5
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Chapter 4: Basic Probability
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Sample Questions
Q1) Suppose A and B are independent events where P(A)= 0.4 and P(B)= 0.5.Then P(A and B)= ________.
Q2) There are 47 contestants at a national dog show.How many different ways can contestants fill the first place,second place,and third place positions?
Q3) If event A and event B cannot occur at the same time,then events A and B are said to be
A)mutually exclusive.
B)independent.
C)collectively exhaustive.
D)None of the above.
Q4) If two events are mutually exclusive,what is the probability that both occur at the same time?
A)0
B)0.50
C)1.00
D)Cannot be determined from the information given
Q5) If P(A and B)= 1,then A and B must be collectively exhaustive.
A)True
B)False
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Chapter 5: Discrete Probability Distributions
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Sample Questions
Q1) Suppose that past history shows that 60% of college students prefer Brand C cola.A sample of 5 students is to be selected.The probability that exactly 1 prefers Brand C is ________.
Q2) Referring to Table 5-8,what is the total variance of the profit if you increase the shift of your production lines and choose to produce both designs?
Q3) Referring to Table 5-3,the standard deviation of the number of retransmissions is ________.
Q4) An Undergraduate Study Committee of 6 members at a major university is to be formed from a pool of faculty of 18 men and 6 women.Which of the following distributions would you use to determine the probability that half of the members will be women?
A)Hypergeometric distribution
B)Poisson distribution
C)Uniform distribution
D)Binomial distribution
Q5) Referring to Table 5-9,what is the probability that in the next 1,000 customers,the hotel chain will have at least two mishandled bags?
Q6) Referring to Table 5-4,the variance of the number of accidents is ________.
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Chapter 6: The Normal Distribution and Other Continuous
Distributions
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Sample Questions
Q1) A wheel spinning game is played with a special wheel with 24 equal segments that determine the dollar values of a single spin.Which of the following distributions can best be used to compute the probability of winning a specific dollar value in a single spin?
A)Uniform distribution
B)Binomial distribution
C)Normal distribution
D)Exponential distribution
Q2) Suppose the light bulbs in a factory burn out at a rate of 50 bulbs per month.Which of the following distributions would you use to determine the probability that the next two light bulbs will burn out 2 days apart?
A)Hypergeometric distribution
B)Poisson distribution
C)Uniform distribution
D)Exponential distribution
Q3) Referring to Table 6-5,what is the probability that a randomly selected orange will contain between 4.5 and 5.2 ounces of juices?
Q4) Referring to Table 6-6,find the two values that will bound the middle 50% of the annual returns?
Page 8
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Chapter 7: Sampling and Sampling Distributions
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Sample Questions
Q1) A telemarketer set the company's computerized dialing system to contact every 25th person listed in the local telephone directory.What sampling method was used?
A)Simple random sample
B)Systematic sample
C)Stratified sample
D)Cluster sample
Q2) The amount of tea leaves in a can from a particular production line is normally distributed with = 110 grams and = 25 grams.A sample of 25 cans is to be selected.So,95% of all sample means will be greater than how many grams?
Q3) ________ results from the exclusion of certain groups of subjects from a population frame.
Q4) The amount of time required for an oil and filter change on an automobile is normally distributed with a mean of 45 minutes and a standard deviation of 10 minutes.A random sample of 16 cars is selected.What is the probability that the sample mean is between 45 and 52 minutes?
Q5) A sampling distribution is a distribution for a statistic.
A)True
B)False
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Chapter 8: Confidence Interval Estimation
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Sample Questions
Q1) Referring to Table 8-13,we are 95% confident that between 51.16% and 64.84% of managers in the population have caught salespeople cheating on an expense report.
A)True
B)False
Q2) Referring to Table 8-7,the parameter of interest is the proportion of the rooms rented daily in a given month.
A)True
B)False
Q3) Given a sample mean of 2.1 and a sample standard deviation of 0.7 from a sample of 10 data points,a 90% confidence interval will have a width of 2.36.
A)True
B)False
Q4) The head of a computer science department is interested in estimating the proportion of students entering the department who will choose the new computer engineering option.Suppose there is no information about the proportion of students who might choose the option.What size sample should the department head take if she wants to be 95% confident that the estimate is within 0.10 of the true proportion?
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Chapter 9: Fundamentals of Hypothesis Testing:
One-Sample Tests
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Sample Questions
Q1) You have created a 95% confidence interval for with the result 10 15.What decision will you make if we test H : = 16 versus H : 16 at = 0.01?
A)Reject H in favor of H .
B)Do not reject H in favor of H .
C)Fail to reject H in favor of H .
D)You cannot tell what our decision will be from the information given.
Q2) If,as a result of a hypothesis test,you reject the null hypothesis when it is ESQ,then you have committed
A)a Type II error.
B)a Type I error.
C)no error.
D)an acceptance error.
Q3) Referring to Table 9-4,if the level of significance had been chosen as 0.05,the null hypothesis would be rejected.
A)True
B)False
Q4) Referring to Table 9-9,what critical value should the president use to determine the rejection region?
Q5) Referring to Table 9-3,the p-value of the test is ________.
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Chapter 10: Two-Sample Tests
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Sample Questions
Q1) Referring to Table 10-12,the null hypothesis should be rejected.
A)True
B)False
Q2) Referring to Table 10-12,the p-value of the test is ________.
Q3) Referring to Table 10-13,which of the following represents the relevant hypotheses tested?
A)H : I - II 0 versus H : I - II < 0
B)H : I - II 0 versus H : I - II > 0
C)H : I - II = 0 versus H : I - II 0
D)H : I - II 0 versus H : I - II = 0
Q4) Referring to Table 10-10,construct a 95% confidence interval estimate of the difference in proportion of workers who would like to attend a self-improvement course in the recent study and the past study.
Q5) A researcher is curious about the effect of sleep on students' test performances.He chooses 60 students and gives each two tests: one given after two hours' sleep and one after eight hours' sleep.The test the researcher should use would be a related samples test.
A)True
B)False
Q6) Referring to Table 10-6,the t test should be ________ -tail.
Page 12
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Chapter 11: Analysis of Variance
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Sample Questions
Q1) Referring to Table 11-4,the test is valid only if the population of crop yields has the same variance for the 3 varieties.
A)True
B)False
Q2) Referring to Table 11-11,what degrees of freedom should be used to determine the critical value of the F ratio against which to test for interaction between the two factors?
A)numerator df = 1,denominator df = 159
B)numerator df = 3,denominator df = 159
C)numerator df = 1,denominator df = 152
D)numerator df = 3,denominator df = 152
Q3) Referring to Table 11-6,using an overall level of significance of 0.01,what is the critical range for the Tukey multiple comparison procedure?
Q4) Referring to Table 11-2,the among group degrees of freedom is A)3.
B)4.
C)12.
D)16.
Q5) Referring to Table 11-4,the among-group variation or SSA is ________.
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Chapter 12: Chi-Square Tests and Nonparametric Tests
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Sample Questions
Q1) Referring to Table 12-6,the null hypothesis cannot be rejected.
A)True
B)False
Q2) Referring to Table 12-20,what is the p-value of the Kruskal-Wallis test statistic?
Q3) Referring to Table 12-13,if there is no connection between weights and average number of hours spent watching TV,we should expect how many children to be spending no more than 6 hours on average watching TV and are more than 10 lbs.underweight?
A)5.8
B)6.2
C)8
D)12
Q4) Referring to Table 12-18,what is the mean of the Wilcoxon rank sum test statistic T ?
Q5) Referring to Table 12-16,in order to perform the test,you need to assume that the amount filled by the machine follows a normal distribution.
A)True
B)False
Q6) Referring to Table 12-18,what is the value of the Z test statistic?
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Chapter 13: Simple Linear Regression
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Sample Questions
Q1) Referring to Table 13-11,what is the p-value for testing whether there is a linear relationship between revenue and the number of downloads at a 5% level of significance?
Q2) Referring to Table 13-4,the managers of the brokerage firm wanted to test the hypothesis that the number of new clients brought in did not affect the amount of sales generated.The value of the test statistic is ________.
Q3) Referring to Table 13-10,what are the degrees of freedom of the F test statistic when testing whether the number of customers who make purchases is a good predictor for weekly sales?
Q4) Referring to Table 13-10,the null hypothesis for testing whether the number of customers who make a purchase affects weekly sales cannot be rejected if a 1% probability of committing a type I error is desired.
A)True
B)False
Q5) Referring to Table 13-10,what is the value of the coefficient of correlation?
Q6) Referring to Table 13-11,what is the standard error of estimate?
Q7) Referring to Table 13-4,the total sum of squares (SST)is ________.
Q8) Referring to Table 13-4,the coefficient of determination is ________.
Q9) Referring to Table 13-4,the coefficient of correlation is ________.
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Chapter 14: Introduction to Multiple Regression
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Sample Questions
Q1) Referring to Table 14-17 Model 1,what are the numerator and denominator degrees of freedom,respectively,for the test statistic to determine whether there is a significant relationship between the number of weeks a worker is unemployed due to a layoff and the entire set of explanatory variables?
Q2) Referring to Table 14-4,at the 0.01 level of significance,what conclusion should the builder draw regarding the inclusion of School in the regression model?
A)School is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
B)School is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
C)School is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01.
D)School is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.
Q3) Referring to Table 14-14,the predicted mileage for a 200 horsepower,4-cylinder car is
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Chapter 15: Multiple Regression Model Building
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Sample Questions
Q1) The goals of model building are to find a good model with the fewest independent variables that is easier to interpret and has lower probability of collinearity.
A)True
B)False
Q2) Referring to Table 15-6,what is the value of the variance inflationary factor of Age?
Q3) Referring to Table 15-1,what is the correct interpretation of the coefficient of multiple determination?
A)98.8% of the total variation in demand can be explained by the linear relationship between demand and price.
B)98.8% of the total variation in demand can be explained by the quadratic relationship between demand and price.
C)98.8% of the total variation in demand can be explained by the addition of the square term in price.
D)98.8% of the total variation in demand can be explained by just the square term in price.
Q4) Referring to Table 15-5,what is the value of the variance inflationary factor of MPG?
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Chapter 16: Time-Series Forecasting
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Sample Questions
Q1) Referring to Table 16-14,in testing the coefficient for Q in the regression equation (-0.083),the results were a t-statistic of -0.66 and an associated p-value of 0.530.Which of the following is the best interpretation of this result?
A)The number of contracts in the first quarter of the year is significantly different from the number of contracts in an average quarter ( = 0.05).
B)The number of contracts in the first quarter of the year is not significantly different from the number of contracts in an average quarter ( = 0.05).
C)The number of contracts in the first quarter of the year is significantly different from the number of contracts in the fourth quarter for a given coded quarterly value of X ( = 0.05).
D)The number of contracts in the first quarter of the year is not significantly different from the number of contracts in the fourth quarter for a given coded quarterly value of X ( = 0.05).
Q2) Referring to Table 16-2,set up a scatter plot (i.e.,time-series plot)with months on the horizontal X-axis.
Q3) Referring to Table 16-7,the forecast for the demand in 2012 is ________.
Q4) Referring to Table 16-8,the forecast for profits in 2015 is ________.
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Chapter 17: Statistical Applications in Quality Management
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Sample Questions
Q1) Referring to Table 17-9,an R chart is to be constructed for the weight.The upper control limit for this data set is ________.
Q2) Common causes of variation represent variation due to the inherent variability in the system.
A)True
B)False
Q3) Referring to Table 17-2,what is the numerical value of the center line for the p chart?
A)0.53
B)0.56
C)0.63
D)0.66
Q4) Referring to Table 17-8,an R chart is to be constructed for the time required to register.The lower control limit for this data set is ________.
Q5) The cause of variation that can be reduced only by changing the system is ________ cause variation.
Q6) Referring to Table 17-6,a p control chart is to be constructed for these data.The center line for the chart should be located at ________.
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Chapter 18: A Roadmap for Analyzing Data
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Sample Questions
Q1) The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.She would now like to determine whether or not the mean age of her customers is more than 30.If so,she plans to alter the entertainment to appeal to an older crowd.If not,no entertainment changes will be made.Which of the following tests will you perform to help her make a decision?
A)t test for the mean
B)Z test for the proportion
C)Pooled-variance t test
D)Separate-variance t test
Q2) Are Japanese managers more motivated than American managers? A randomly selected group of 100 managers from each group were administered the Sarnoff Survey of Attitudes Toward Life (SSATL),which measures motivation for upward mobility.The mean and standard deviation of the SSATL scores were computed.The standard deviations of the SSATL scores suggest that the standard deviation from the two groups is very different.Which of the following tests will be the most appropriate?
A)t test for the mean
B)Z test for the proportion
C)Pooled-variance t test
D)Separate-variance t test
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Chapter 19: Questions that Involve Online Topics
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Sample Questions
Q1) If a new machine of a production plant is functioning properly,only 1% of the items produced will be defective.Out of the 1,000 items the plant produces on a single day,the approximate probability that more than 0.2% of the items will be defective if the new machine is indeed functioning properly is ________.
Q2) Referring to Table 16-2,what are the simple price indices for wheat,corn,soybeans and milk,respectively,in 2010 using 2006 as the base year?
Q3) Referring to Table 19-1,if the probability of S1 is 0.2 and S2 is 0.8,then the expected monetary value of A1 is
A)2.4
B)5.6
C)8
D)16
Q4) For a given sample size,the probability of committing a Type II error will increase when the probability of committing a Type I error is reduced.
A)True
B)False
Q5) In portfolio analysis,the ________ is the reciprocal of the return to risk ratio.
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