Test Bank for Business Statistics, 2nd Edition

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ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.1)Using income data to determine the credit worthiness of a consumer who wishes to purchase a newcar is an example of using statistics in the field of ________.1)A)marketing researchB)financeC)operationsD)advertisingAnswer:BExplanation:A)B)C)D)2)A ________ sample does not represent the intended population and can lead to distorted findings.2)A)randomB)stratifiedC)probabilityD)biasedAnswer:DExplanation:A)B)C)D)3)A method of gathering data while the subjects of interest are in their natural environment, oftenunaware they are being watched, is known as ________.3)A)focus groupsB)experimentsC)direct observationD)surveysAnswer:CExplanation:A)B)C)D)4)Using quality control techniques to test the salt content of pretzels before they are packaged for theconsumer is an example of using statistics in the field of ________.4)A)advertisingB)marketing researchC)financeD)operationsAnswer:DExplanation:A)B)C)D)1

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5)General Mills is considering offering a new type of yogurt. To gauge interest, they are performingtaste tests at different locations around the country. Based on the results of these samples, they willdecide whether or not to market the new yogurt. This is an example of using ________.5)A)descriptive statistics.B)inferential statistics.C)qualitative data.D)secondary data.Answer:BExplanation:A)B)C)D)6)A respondent of a survey indicates that he owns the home that he currently resides. This is anexample of ________ data.6)A)ordinalB)intervalC)ratioD)nominalAnswer:DExplanation:A)B)C)D)7)A ________ represents all possible subjects of interest.7)A)statisticB)sampleC)parameterD)populationAnswer:DExplanation:A)B)C)D)8)Bridgestone would like to estimate the average tread life of a particular brand of automobile tire.Fifty customers who have purchased this tire are sampled and asked about the tread life of theirtires. This is an example of using ________.8)A)qualitative data.B)inferential statistics.C)descriptive statistics.D)secondary data.Answer:BExplanation:A)B)C)D)9)A ________ is a portion of a population that is representative of the population from which it isselected.9)A)surveyB)parameterC)sampleD)statisticAnswer:CExplanation:A)B)C)D)2

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10)In a Major League Baseball game today, the Philadelphia Phillies scored six runs against the NewYork Mets. This is an example of ________ data.10)A)ratioB)intervalC)ordinalD)nominalAnswer:AExplanation:A)B)C)D)11)Which levels of measurement are considered qualitative data?11)A)nominal and ordinalB)nominal and intervalC)interval and ratioD)ordinal and ratioAnswer:AExplanation:A)B)C)D)12)The proportion of customers that rate their latest airline experience as "excellent" is an example of________.12)A)inferential statistics.B)qualitative data.C)descriptive statistics.D)secondary data.Answer:CExplanation:A)B)C)D)13)________ data are values collected from a number of subjects (firms, individual, states, regions, andso forth) during a single time period.13)A)Time seriesB)Cross-sectionalC)OrdinalD)RatioAnswer:BExplanation:A)B)C)D)14)A method of gathering data when individuals are paid to discuss their attitudes towards productsor services in a group setting controlled by a moderator is known as ________.14)A)experimentsB)direct observationC)surveysD)focus groupsAnswer:DExplanation:A)B)C)D)3

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15)A respondent of a survey indicates that she is currently in her junior year at the University of Texas.This is an example of ________ data.15)A)ratioB)intervalC)nominalD)ordinalAnswer:DExplanation:A)B)C)D)16)________data are values that correspond to specific measurements taken over a range of timeperiods.16)A)Cross-sectionalB)Time seriesC)RatioD)OrdinalAnswer:BExplanation:A)B)C)D)17)A property of ________ data is that the differences between categories are not meaningful and,therefore, cannot be measured.17)A)cross-sectionalB)intervalC)ratioD)ordinalAnswer:DExplanation:A)B)C)D)18)Which levels of measurement are considered quantitative data?18)A)interval and ratioB)nominal and ratioC)nominal and intervalD)nominal and ordinalAnswer:AExplanation:A)B)C)D)19)According to climate data recorded since 1884, the average annual snowfall in Philadelphia is 22.3inches. This value is an example of ________.19)A)descriptive statistics.B)biased data.C)inferential statistics.D)qualitative data.Answer:AExplanation:A)B)C)D)4

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20)The following table shows the number of bagels sold at the Avalon Coffee and Bagel over the pastseven days.DayNumber SoldMonday69Tuesday63Wednesday88Thursday74Friday120Saturday197Sunday226Which of the following data types best describe these values?20)A)ordinalB)nominalC)cross-sectionalD)time seriesAnswer:DExplanation:A)B)C)D)21)________ data use descriptive terms to measure or classify something of interest.21)A)SecondaryB)QualitativeC)QuantitativeD)PrimaryAnswer:BExplanation:A)B)C)D)22)A Bank of America employee records the amount of time that customers spend using the ATMmachine at her branch. This method of gathering data is known as ________.22)A)experimentsB)direct observationC)focus groupsD)surveysAnswer:BExplanation:A)B)C)D)23)A method of gathering data when subjects are exposed to certain treatments and the data of interestis recorded is known as ________.23)A)direct observationB)focus groupsC)surveysD)experimentsAnswer:DExplanation:A)B)C)D)5

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24)Gathering information from potential customers in an effort to determine their preferences is anexample of using statistics in the field of ________.24)A)financeB)marketing researchC)operationsD)advertisingAnswer:BExplanation:A)B)C)D)25)A respondent of a survey is asked whether their most recent dining experience was excellent, good,fair, or poor. The person indicates that the experience was "good". This is an example of ________data.25)A)intervalB)ratioC)nominalD)ordinalAnswer:DExplanation:A)B)C)D)26)A marketing manager for a textbook publisher meets with a group of several students who are paidto discuss what they like and dislike about their textbooks. This method of gathering data is knownas ________.26)A)surveysB)direct observationC)experimentsD)focus groupsAnswer:DExplanation:A)B)C)D)27)Collecting data about the television viewers for the Summer Olympics is an example of usingstatistics in the field of ________.27)A)human resourcesB)operationsC)advertisingD)financeAnswer:CExplanation:A)B)C)D)28)The Graduate Management Admission Test (GMAT) is a standardized test used by schools todetermine the aptitude of individuals who are applying for MBA programs. The range of theGMAT score is 200-800. Brian has recently taken the exam and scored 720. This is an example of________ data.28)A)ratioB)nominalC)intervalD)ordinalAnswer:CExplanation:A)B)C)D)6

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29)The number of iPhones sold today at an Apple store is an example of ________ data.29)A)ratioB)intervalC)nominalD)ordinalAnswer:AExplanation:A)B)C)D)30)The manager at the local Ruby Tuesday's restaurant wanted to investigate the effect of music on theaverage revenue per customer. Each night for one month, fast-paced music was played. Thefollowing month, slow-paced music was played every night. The average revenue per customer foreach month was compared. This method of gathering data is known as ________.30)A)direct observationB)surveysC)focus groupsD)experimentsAnswer:DExplanation:A)B)C)D)31)Data that describe a characteristic about a population is known as a ________.31)A)statisticB)surveyC)sampleD)parameterAnswer:DExplanation:A)B)C)D)32)Which of the following is an example of quantitative data?32)A)Apple's closing stock price todayB)your telephone numberC)your genderD)the zip code of your home addressAnswer:AExplanation:A)B)C)D)7

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33)The following table shows the market share for flat-panel television sales in the second quarter of2013.CompanyMarket ShareSamsung26.5%LG16.3%Sony8.0%Panasonic5.3%Guangdong5.1%Other38.8%Which of the following data types best describes these values?33)A)nominalB)ordinalC)cross-sectionalD)time seriesAnswer:CExplanation:A)B)C)D)34)Data that describe a characteristic about a sample is known as a ________.34)A)populationB)parameterC)surveyD)statisticAnswer:DExplanation:A)B)C)D)35)Which of the following is an example of qualitative data?35)A)your last nameB)the amount of time that you studied for your last statistics examC)today's high temperatureD)the class average of your last statistics examAnswer:AExplanation:A)B)C)D)36)Holiday Inn would like to estimate the satisfaction level of its customers. A sample of 25 hotelswere selected and the customers at these locations were asked to rate their experience on a scale of1-10. Based on this sample data, Holiday Inn will draw a conclusion about the satisfaction level oftheir customers. This is an example of using ________.36)A)descriptive statistics.B)inferential statistics.C)qualitative data.D)secondary data.Answer:BExplanation:A)B)C)D)8

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37)________ data has the benefit of a true zero point.37)A)OrdinalB)RatioC)IntervalD)NominalAnswer:BExplanation:A)B)C)D)38)________ is (are) derived from facts for the purpose of making decisions.38)A)StatisticsB)SamplesC)InformationD)DataAnswer:CExplanation:A)B)C)D)39)A method of gathering data when people are asked a series of questions that can be administeredby e-mail, via the Web, face-to-face or over the telephone, is known as ________.39)A)focus groupsB)direct observationC)experimentsD)surveysAnswer:DExplanation:A)B)C)D)40)Your business statistics class had an exam last week. The average exam score for the class is anexample of ________.40)A)descriptive statistics.B)inferential statistics.C)secondary data.D)qualitative data.Answer:AExplanation:A)B)C)D)41)A respondent of a survey indicates that he is a resident in the state of Ohio. This is an example of________ data.41)A)ratioB)intervalC)nominalD)ordinalAnswer:CExplanation:A)B)C)D)9

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42)The main drawback to using secondary data is that ________.42)A)the subjects of interest need to be directly observed to collect the dataB)it may be expensive to obtain the dataC)the subjects of interest are paid to provide the dataD)you have no control over how the data were collectedAnswer:DExplanation:A)B)C)D)43)________ data use numerical values to describe something of interest either by measuring it orcounting it.43)A)SecondaryB)PrimaryC)QuantitativeD)QualitativeAnswer:CExplanation:A)B)C)D)44)A telemarketer calls individuals at home over the phone and asks them the likelihood that they willpurchase a timeshare property over the next 12 months. This method of gathering data is known as________.44)A)focus groupsB)direct observationC)experimentsD)surveysAnswer:DExplanation:A)B)C)D)45)The following table shows the stock price for Facebook at the end of the past four quarters.QuarterYearStock Price42012$25.9112013$25.7322013$24.8832013$51.24Which of the following data types best describe these values?45)A)ordinalB)cross-sectionalC)nominalD)time seriesAnswer:DExplanation:A)B)C)D)10

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46)The results from a survey that collected annual household income is shown in the following table.HouseholdIncome ($000)Number ofHouseholdsUnder $3067$30 to under $40111$40 to under $50125$50 to under $6021$60 to under $7038Over $7040Which of the following data types best describe these values?46)A)nominalB)time seriesC)ordinalD)cross-sectionalAnswer:DExplanation:A)B)C)D)47)A car dealership performs a credit check on a potential customer. According to the credit bureau,the customer's credit score is 710. This is an example of ________ data.47)A)ratioB)nominalC)intervalD)ordinalAnswer:CExplanation:A)B)C)D)SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.48)48)Answer:Explanation:49)49)Answer:Explanation:50)50)Answer:Explanation:TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.51)Business statistics are statistics applied to the business world in an effort to improve people'sdecision making in fields such as marketing, operations, finance, and human resources.51)Answer:TrueFalseExplanation:11

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52)Deciding that a process that fills bottles with soda is functioning properly by checking the weightsfor a sample of bottles is an example of inferential statistics.52)Answer:TrueFalseExplanation:53)A restaurant manager randomly selects tables at which customers have just been seated andrecords the amount of time it takes for the wait staff to greet these customers. This is an example ofan experiment being used to collect data.53)Answer:TrueFalseExplanation:54)Determining the proportion of customers who have credit scores greater than 700 is an example ofdescriptive statistics.54)Answer:TrueFalseExplanation:55)A hotel employee asks customers who are checking out to rate their satisfaction on a scale of 1-10.This is an example of collecting primary data.55)Answer:TrueFalseExplanation:56)A limitation of descriptive statistics is that, by summarizing large quantities of data, you loseinformation.56)Answer:TrueFalseExplanation:57)An unbiased sample is a sample that does not represent the intended population and canlead to distorted findings. Unbiased sampling can occur either intentionally orunintentionally.57)Answer:TrueFalseExplanation:58)It is recommended that personal demographic questions be placed at the beginning of thequestionnaire because respondents find these questions easy to answer.58)Answer:TrueFalseExplanation:59)Calculating the average time callers wait on the phone for technical support is an example ofinferential statistics.59)Answer:TrueFalseExplanation:60)Interval data deals strictly with qualitative data assigned to predetermined categories.60)Answer:TrueFalseExplanation:61)To help ensure good questionnaire design, it is recommended that a survey is tested on a smallgroup of respondents before releasing it to the actual participants.61)Answer:TrueFalseExplanation:12

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62)Bias can occur in a survey when a question is stated in a way that encourages or leads a respondentto a particular answer.62)Answer:TrueFalseExplanation:63)Statistics can be misused by making differences seem greater or lesser by adjusting the scale ongraphs.63)Answer:TrueFalseExplanation:64)A manager of an electronics store would like to investigate the impact that price has on the demandfor laptop computers. Each week, the price of a Dell laptop is adjusted and the demand for eachweek is recorded. This is an example of an experiment being used to collect data.64)Answer:TrueFalseExplanation:65)Statistics is the mathematical science that deals with the collection, analysis, and presentation ofdata–data that can then be used as a basis for inference and induction.65)Answer:TrueFalseExplanation:66)Nominal data has all the features of interval data with the added benefit of having a true zeropoint.66)Answer:TrueFalseExplanation:67)Education level is an example of nominal data.67)Answer:TrueFalseExplanation:68)A marketing research employee randomly selects adults in a shopping mall and asks them whattype of car that they drive. This is an example of using direct observation to collect data.68)Answer:TrueFalseExplanation:69)Primary data is data collected by the person or organization that eventually uses the data.69)Answer:TrueFalseExplanation:70)A respondent to a survey indicates that she drives a Ford Taurus. This is an example of qualitativedata.70)Answer:TrueFalseExplanation:71)Analyzing unemployment data from the Bureau of Labor Statistics is an example of usingsecondary data.71)Answer:TrueFalseExplanation:13

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72)Your cell phone number is an example of quantitative data.72)Answer:TrueFalseExplanation:73)The number of pages in your business statistics textbook is an example of quantitative data.73)Answer:TrueFalseExplanation:74)Predicting election results by asking voters their intentions is an example of descriptive statistics.74)Answer:TrueFalseExplanation:75)The mathematical operation of multiplication can be performed on interval data.75)Answer:TrueFalseExplanation:76)Asking customers at the shopping mall about their voting intentions in the upcoming politicalelection is an example of secondary data.76)Answer:TrueFalseExplanation:77)An employee records the number of customers that arrive at a retail store today. This is an exampleof collecting information.77)Answer:TrueFalseExplanation:78)Information is the basic foundation for the field of statistics and can be defined as the valueassigned to a specific observation or measurement.78)Answer:TrueFalseExplanation:79)A respondent to a survey indicates that he has lived in his current residence for three years. This isan example of qualitative data.79)Answer:TrueFalseExplanation:80)The interval measurement level is considered quantitative data.80)Answer:TrueFalseExplanation:81)The ratio measurement level is considered qualitative data.81)Answer:TrueFalseExplanation:82)The purpose of inferential statistics is to make claims or conclusions about a population based on asample.82)Answer:TrueFalseExplanation:14

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83)Analyzing snowfall amounts in New York over the past 100 years to help predict future weatherpatterns is an example of using primary data.83)Answer:TrueFalseExplanation:84)The purpose of inferential statistics is to summarize or display data.84)Answer:TrueFalseExplanation:85)One of the major reasons to use statistics is to transform data into information.85)Answer:TrueFalseExplanation:86)The mathematical operation of addition can be performed on nominal data.86)Answer:TrueFalseExplanation:15

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