Business Statistics: for Contemporary Decision Making, 7th Edition Test Bank

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File: ch01, Chapter 1: Introduction to StatisticsTrue/False1. Virtually all areas of business use statistics in decision making.Ans: TrueResponse: See section 1.1, Statistics in BusinessDifficulty: EasyLearning Objective: 1.1: List quantitative and graphical examples of statistics within a businesscontext.2. The complete collection of all entities under study is called the sample.Ans: FalseResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.3. A portion or subset of the entities under study is called the statistic.Ans: FalseResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.4. A descriptive measure of the population is called a parameter.Ans: TrueResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.

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5. A census is the process of gathering data on all the entities in the population.Ans: TrueResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.6. Statistics is commonly divided into two branches called descriptive statistics and summarystatistics.Ans: FalseResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.7. A descriptive measure of the sample is called a statistic.Ans: TrueResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.8. Gathering data from a sample to reach conclusions about the population from which thesample was drawn is called descriptive statistics.Ans: FalseResponse: See section 1.2, Basic Statistical ConceptsDifficulty: MediumLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.9. Calculation of population parameters is usually either impossible or excessively timeconsuming and costly.

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Ans: TrueResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.10. The basis for inferential statistics is the ability to make decisions about populationparameters without having to complete a census of the population.Ans: TrueResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.11.All numerical data must be analyzed statistically in the same way because all of them arerepresented by numbers.Ans: FalseResponse: See section 1.4, Data MeasurementDifficulty:MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.12.The manner in which numerical data can be analyzed statistically depends on the level ofdata measurement represented by numbers being analyzed.Ans: TrueResponse: See section 1.4, Data MeasurementDifficulty:MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.13.The lowest level of data measurement is the ratio level.Ans: False

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Response: See section 1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4:Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.14.The highest level of data measurement is the ratio level.Ans: TrueResponse: See section 1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.15.Numbers which are usedonlyto classify or categorize the observations represent datameasured at the nominal level.Ans: TrueResponse: See section 1.4, Data MeasurementDifficulty: MediumLearning Objective: 1.4: Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.16.Numbers which are used to rank-order the performance of workers represent data measuredat the interval level.Ans: FalseResponse: See section 1.4, Data MeasurementDifficulty: MediumLearning Objective: 1.4: Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.17.Nominal and ordinal data are sometimes referred to as qualitative data.Ans: TrueResponse: See section 1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.

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18.Nominal and ordinal data are sometimes referred to as quantitative data.Ans: FalseResponse: See section 1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.19.With interval-level data, the zero point is a matter of convention and does not mean theabsence of the phenomenon under observation.Ans: TrueResponse: See section 1.4, Data MeasurementDifficulty:MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.20.Interval-and Ratio-level data are sometimes referred to as quantitative data.Ans: TrueResponse: See section 1.4, Data MeasurementDifficulty:EasyLearning Objective: 1.4: Compare the fourdifferentlevels of data: nominal, ordinal, interval,and ratio.21. A variable is a numerical description of each of the possible outcomes of an experiment.Ans: TrueResponse: See section 1.3 Variable and dataDifficulty: MediumLearning Objective: 1.3: Explain the difference between variables, measurement, and data.22. Statistics can be used to predict the business future.Ans: TrueResponse: See section 1.1, Statistics in Business

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Difficulty: EasyLearning Objective: 1.1: List quantitative and graphical examples of statistics within a businesscontext.23.Statistics are used to market vitamins.Ans: TrueResponse: See section 1.1, Statistics in BusinessDifficulty: EasyLearning Objective: 1.1: List quantitative and graphical examples of statistics within a businesscontext.24.A list of final grades in an introductory class in business is an example of statisticsAns: falseResponse: See section 1.1, Statistics in BusinessDifficulty: FalseLearning Objective: 1.1: List quantitative and graphical examples of statistics within a businesscontext.Multiple Choice25. Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s Electrical Division, isdirecting a study to identify and assess the relative importance of product features. Manueldirects his staff to design a survey questionnaire for distribution to all of Plano’s 954 customers.For this study, the set of 954 customers is ________________.a) a parameterb) a samplec) the populationd) a statistice) the frameAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.

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26. Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s Electrical Division, isdirecting a study to identify and assess the relative importance of product features. Manueldirects his staff to design a survey questionnaire for distribution to 100 of Plano’s 954 customers.For this study, the set of 100 customers is ________________.a) a parameterb) a samplec) the populationd) a statistice) the frameAns: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.27. Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.Specifically, the number of industrial customers is stable at 1,500, but they are purchasing lesseach year. She orders her staff to search for causes of the downward trend by surveying all 1,500industrial customers. For this study, the set of 1,500 industrial customers is ______________.a) a parameterb) a samplec) the populationd) a statistice) the frameAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.28. Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.Specifically, the number of industrial customers is stable at 1,500, but they are purchasing lesseach year. She orders her staff to search for causes of the downward trend by selecting a focusgroup of 40 industrial customers. For this study, the set of 40 industrial customers is ________.a) a parameterb) a samplec) the populationd) a statistice) the frame

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Ans: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.29. Abel Alonzo, Director of Human Resources, is exploring the causes of employeeabsenteeism at Batesville Bottling during the last operating year (January 1, 1999 throughDecember 31, 1999). For this study the set of all employees who worked at Batesville Bottlingduring the lastoperating year is _________.a) a parameterb) a samplec) the populationd) a statistice) the frameAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.30. Abel Alonzo, Director of Human Resources, is exploring the causes of employeeabsenteeism at Batesville Bottling during the last operating year. Personnel records for 50 of theplant's 250 employees are selected for analysis. For this study, the group of 50 employees is a__________.a) parameterb) samplec) populationd) statistice) frameAns: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.31. When a person collects information from the entire population, this is called a _______.

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a) parameterb) samplec) populationd) censuse) statisticAns: dResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.32.Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s Electrical Division, isleading a study to identify and assess the relative importance of product features. Manuel directshis staff to design a survey questionnaire and distribution it to all of Plano’s 954 customers.Manuel is ordering a ____________.a) statistic from the customersb) census of the customersc) sample of the customersd) sorting of the customerse) parameter of the customersAns: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.33.Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s Electrical Division, isleading a study to identify and assess the relative importance of product features. Manuel directshis staff to design a survey questionnaire and distribute itto100 of Plano’s 954 customers.Manuel is ordering a ____________.a) statistic from the customersb) census of the customersc) sample of the customersd) sorting of the customerse) parameter of the customersAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty:Easy

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Learning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.34.Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.She orders her staff to search for causes of the downward trend by surveying all 1,500 industrialcustomers. Sue is ordering a __________.a) statistic from the industrial customersb) census of the industrial customersc) sample of the industrial customersd) sorting of the industrial customerse) parameter of the industrial customersAns: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.35.Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.She orders her staff to search for causes of the downward trend by selecting a focus group of 40industrial customers. Sue is ordering a __________.a) statistic from the industrial customersb) census of the industrial customersc) sample of the industrial customersd) sorting of the industrial customerse) parameter of the industrial customersAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.36.Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in thepayroll system, and orders an inspection of "each and every payroll voucher issued since January1, 1999." Pinky is ordering a __________________.a) statistic from the payroll vouchers

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b) census of the payroll vouchersc) sample of the payroll vouchersd) sorting of the payroll voucherse) parameter of the payroll vouchersAns: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.37.Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in thepayroll system, and orders an inspection of "every tenth payroll voucher issued since January 1,1999." Pinky is ordering a __________________.a) statistic from the payroll vouchersb) census of the payroll vouchersc) sample of the payroll vouchersd) sorting of the payroll voucherse) parameter of the payroll vouchersAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty: EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.38.On discovering an improperly adjusted drill press, Jack Joyner, Director of QualityControl, ordered a 100% inspection of all castings drilled during the evening shift. Jack isordering a ___________________.a) statistic from the castingsb) census of the castingsc) sample of the castingsd) sorting of the castingse) parameter of the castingsAns: bResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.

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39.On discovering an improperly adjusted drill press, Jack Joyner, Director of QualityControl, ordered an inspection of every fifth casting drilled during the evening shift. Jack isordering a ___________________.a) statistic from the castingsb) census of the castingsc) sample of the castingsd) sorting of the castingse) parameter of the castingsAns: cResponse: See section 1.2, Basic Statistical ConceptsDifficulty:EasyLearning Objective: 1.2: define important statistical terms, including population, sample, andparameter, as they relate to descriptive and inferential statistics.40.The lowest level of data measurement is _______.a) interval levelb) ordinal levelc) nominal leveld) ratio levele) minimal levelAns: cResponse:See section 1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.41.Which of the following operations is meaningful for processing nominal data?a) Additionb) Multiplicationc) Rankingd) Countinge) DivisionAns: dResponse: See section1.4, Data MeasurementDifficulty:MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.

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42.Which scale of measurement has these two properties: linear distance is meaningful and thelocation of origin (or zero point) is arbitrary?a) Interval levelb) Ordinal levelc) Nominal leveld) Ratio levele) Minimal levelAns: aResponse: See section1.4, Data MeasurementDifficulty: MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.43.Which scale of measurement has these two properties: linear distance is meaningful and thelocation of origin (or zero point) is absolute (or natural)?a) Interval levelb) Ordinal levelc) Nominal leveld) Ratio levele) Relative levelAns: dResponse: See section1.4, Data MeasurementDifficulty:MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.44.Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.She orders her staff to search for causes of the downward trend by surveying all 1,500 industrialcustomers. One question on the survey asked the customers: “Which of the following bestdescribes your primary business: a. manufacturing, b. wholesaler, c. retail, d. service.” Themeasurement level for this question is _________________.a) interval levelb) ordinal levelc) nominal level

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d) ratio levele) relative levelAns: cResponse: See section1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.45.A question in a survey of microcomputer users asked: “Which operating system do you usemost often: a. Apple OS 7, b. MS DOS, c. MS Windows 95, d. UNIX.” The measurement levelfor this question is _________________.a) nominal levelb) ordinal levelc) interval leveld) ratio levele) relative levelAns: aResponse: See section1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.46.Which of the following operations is meaningful for processing ordinal data, but ismeaningless for processing nominal data?a) Additionb) Multiplicationc) Rankingd) Countinge) DivisionAns: cResponse: See section1.4, Data MeasurementDifficulty:MediumLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.47.Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.

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She orders her staff to search for causes of the downward trend by surveying all 1,500 industrialcustomers. One question on the survey asked the customers: “How many people does yourcompany employ? The measurement level for this question is __________.a) interval levelb) ordinal levelc) nominal leveld) relative levele) ratio levelAns: eResponse: See section1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.48.A consumer has been asked to rank five cars based upon their desirability. This level ofmeasurement is _______.a) interval levelb) ordinal levelc) nominal leveld) ratio levele) relative levelAns: bResponse: See section1.4, Data MeasurementDifficulty: EasyLearning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval,and ratio.49.Morningstar Mutual Funds analyzes the risk and performance of mutual funds. Each mutualfund is assigned an overall rating of one to five stars. One star is the lowest rating, and five starsis the highest rating. This level of measurement is __________.a) ordinal levelb) interval levelc) nominal leveld) ratio levele) relative levelAns: aResponse: See section1.4, Data Measurement

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