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Test Bank for Business Statistics, 2nd Edition

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    Exam Name___________________________________ 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 new car is an example of using statistics in the field of ________. 1) A) marketing research B) finance C) operations D) advertising Answer: B Explanation: A) B) C) D) 2) A ________ sample does not represent the intended population and can lead to distorted findings. 2) A) random B) stratified C) probability D) biased Answer: D Explanation: A) B) C) D) 3) A method of gathering data while the subjects of interest are in their natural environment, often unaware they are being watched, is known as ________. 3) A) focus groups B) experiments C) direct observation D) surveys Answer: C Explanation: A) B) C) D) 4) Using quality control techniques to test the salt content of pretzels before they are packaged for the consumer is an example of using statistics in the field of ________. 4) A) advertising B) marketing research C) finance D) operations Answer: D Explanation: 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 performing taste tests at different locations around the country. Based on the results of these samples, they will decide 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: B Explanation: A) B) C) D) 6) A respondent of a survey indicates that he owns the home that he currently resides. This is an example of ________ data. 6) A) ordinal B) interval C) ratio D) nominal Answer: D Explanation: A) B) C) D) 7) A ________ represents all possible subjects of interest. 7) A) statistic B) sample C) parameter D) population Answer: D Explanation: 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 their tires. This is an example of using ________. 8) A) qualitative data. B) inferential statistics. C) descriptive statistics. D) secondary data. Answer: B Explanation: A) B) C) D) 9) A ________ is a portion of a population that is representative of the population from which it is selected. 9) A) survey B) parameter C) sample D) statistic Answer: C Explanation: 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 New York Mets. This is an example of ________ data. 10) A) ratio B) interval C) ordinal D) nominal Answer: A Explanation: A) B) C) D) 11) Which levels of measurement are considered qualitative data? 11) A) nominal and ordinal B) nominal and interval C) interval and ratio D) ordinal and ratio Answer: A Explanation: 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: C Explanation: A) B) C) D) 13) ________ data are values collected from a number of subjects (firms, individual, states, regions, and so forth) during a single time period. 13) A) Time series B) Cross - sectional C) Ordinal D) Ratio Answer: B Explanation: A) B) C) D) 14) A method of gathering data when individuals are paid to discuss their attitudes towards products or services in a group setting controlled by a moderator is known as ________. 14) A) experiments B) direct observation C) surveys D) focus groups Answer: D Explanation: 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) ratio B) interval C) nominal D) ordinal Answer: D Explanation: A) B) C) D) 16) ________data are values that correspond to specific measurements taken over a range of time periods. 16) A) Cross - sectional B) Time series C) Ratio D) Ordinal Answer: B Explanation: 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 - sectional B) interval C) ratio D) ordinal Answer: D Explanation: A) B) C) D) 18) Which levels of measurement are considered quantitative data? 18) A) interval and ratio B) nominal and ratio C) nominal and interval D) nominal and ordinal Answer: A Explanation: A) B) C) D) 19) According to climate data recorded since 1884, the average annual snowfall in Philadelphia is 22.3 inches. This value is an example of ________. 19) A) descriptive statistics. B) biased data. C) inferential statistics. D) qualitative data. Answer: A Explanation: 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 past seven days. Day Number Sold Monday 69 Tuesday 63 Wednesday 88 Thursday 74 Friday 120 Saturday 197 Sunday 226 Which of the following data types best describe these values? 20) A) ordinal B) nominal C) cross - sectional D) time series Answer: D Explanation: A) B) C) D) 21) ________ data use descriptive terms to measure or classify something of interest. 21) A) Secondary B) Qualitative C) Quantitative D) Primary Answer: B Explanation: A) B) C) D) 22) A Bank of America employee records the amount of time that customers spend using the ATM machine at her branch. This method of gathering data is known as ________. 22) A) experiments B) direct observation C) focus groups D) surveys Answer: B Explanation: A) B) C) D) 23) A method of gathering data when subjects are exposed to certain treatments and the data of interest is recorded is known as ________. 23) A) direct observation B) focus groups C) surveys D) experiments Answer: D Explanation: A) B) C) D) 5

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    24) Gathering information from potential customers in an effort to determine their preferences is an example of using statistics in the field of ________. 24) A) finance B) marketing research C) operations D) advertising Answer: B Explanation: 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) interval B) ratio C) nominal D) ordinal Answer: D Explanation: A) B) C) D) 26) A marketing manager for a textbook publisher meets with a group of several students who are paid to discuss what they like and dislike about their textbooks. This method of gathering data is known as ________. 26) A) surveys B) direct observation C) experiments D) focus groups Answer: D Explanation: A) B) C) D) 27) Collecting data about the television viewers for the Summer Olympics is an example of using statistics in the field of ________. 27) A) human resources B) operations C) advertising D) finance Answer: C Explanation: A) B) C) D) 28) The Graduate Management Admission Test (GMAT) is a standardized test used by schools to determine the aptitude of individuals who are applying for MBA programs. The range of the GMAT score is 200 - 800. Brian has recently taken the exam and scored 720. This is an example of ________ data. 28) A) ratio B) nominal C) interval D) ordinal Answer: C Explanation: 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) ratio B) interval C) nominal D) ordinal Answer: A Explanation: A) B) C) D) 30) The manager at the local Ruby Tuesday's restaurant wanted to investigate the effect of music on the average revenue per customer. Each night for one month, fast - paced music was played. The following month, slow - paced music was played every night. The average revenue per customer for each month was compared. This method of gathering data is known as ________. 30) A) direct observation B) surveys C) focus groups D) experiments Answer: D Explanation: A) B) C) D) 31) Data that describe a characteristic about a population is known as a ________. 31) A) statistic B) survey C) sample D) parameter Answer: D Explanation: A) B) C) D) 32) Which of the following is an example of quantitative data? 32) A) Apple's closing stock price today B) your telephone number C) your gender D) the zip code of your home address Answer: A Explanation: 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 of 2013. Company Market Share Samsung 26.5% LG 16.3% Sony 8.0% Panasonic 5.3% Guangdong 5.1% Other 38.8% Which of the following data types best describes these values? 33) A) nominal B) ordinal C) cross - sectional D) time series Answer: C Explanation: A) B) C) D) 34) Data that describe a characteristic about a sample is known as a ________. 34) A) population B) parameter C) survey D) statistic Answer: D Explanation: A) B) C) D) 35) Which of the following is an example of qualitative data? 35) A) your last name B) the amount of time that you studied for your last statistics exam C) today's high temperature D) the class average of your last statistics exam Answer: A Explanation: A) B) C) D) 36) Holiday Inn would like to estimate the satisfaction level of its customers. A sample of 25 hotels were selected and the customers at these locations were asked to rate their experience on a scale of 1 - 10. Based on this sample data, Holiday Inn will draw a conclusion about the satisfaction level of their customers. This is an example of using ________. 36) A) descriptive statistics. B) inferential statistics. C) qualitative data. D) secondary data. Answer: B Explanation: A) B) C) D) 8

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    37) ________ data has the benefit of a true zero point. 37) A) Ordinal B) Ratio C) Interval D) Nominal Answer: B Explanation: A) B) C) D) 38) ________ is (are) derived from facts for the purpose of making decisions. 38) A) Statistics B) Samples C) Information D) Data Answer: C Explanation: A) B) C) D) 39) A method of gathering data when people are asked a series of questions that can be administered by e - mail, via the Web, face - to - face or over the telephone, is known as ________. 39) A) focus groups B) direct observation C) experiments D) surveys Answer: D Explanation: A) B) C) D) 40) Your business statistics class had an exam last week. The average exam score for the class is an example of ________. 40) A) descriptive statistics. B) inferential statistics. C) secondary data. D) qualitative data. Answer: A Explanation: 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) ratio B) interval C) nominal D) ordinal Answer: C Explanation: 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 data B) it may be expensive to obtain the data C) the subjects of interest are paid to provide the data D) you have no control over how the data were collected Answer: D Explanation: A) B) C) D) 43) ________ data use numerical values to describe something of interest either by measuring it or counting it. 43) A) Secondary B) Primary C) Quantitative D) Qualitative Answer: C Explanation: A) B) C) D) 44) A telemarketer calls individuals at home over the phone and asks them the likelihood that they will purchase a timeshare property over the next 12 months. This method of gathering data is known as ________. 44) A) focus groups B) direct observation C) experiments D) surveys Answer: D Explanation: A) B) C) D) 45) The following table shows the stock price for Facebook at the end of the past four quarters. Quarter Year Stock Price 4 2012 $25.91 1 2013 $25.73 2 2013 $24.88 3 2013 $51.24 Which of the following data types best describe these values? 45) A) ordinal B) cross - sectional C) nominal D) time series Answer: D Explanation: 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. Household Income ($000) Number of Households Under $30 67 $30 to under $40 111 $40 to under $50 125 $50 to under $60 21 $60 to under $70 38 Over $70 40 Which of the following data types best describe these values? 46) A) nominal B) time series C) ordinal D) cross - sectional Answer: D Explanation: 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) ratio B) nominal C) interval D) ordinal Answer: C Explanation: 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's decision making in fields such as marketing, operations, finance, and human resources. 51) Answer: True False Explanation: 11

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    52) Deciding that a process that fills bottles with soda is functioning properly by checking the weights for a sample of bottles is an example of inferential statistics. 52) Answer: True False Explanation: 53) A restaurant manager randomly selects tables at which customers have just been seated and records the amount of time it takes for the wait staff to greet these customers. This is an example of an experiment being used to collect data. 53) Answer: True False Explanation: 54) Determining the proportion of customers who have credit scores greater than 700 is an example of descriptive statistics. 54) Answer: True False Explanation: 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: True False Explanation: 56) A limitation of descriptive statistics is that, by summarizing large quantities of data, you lose information. 56) Answer: True False Explanation: 57) An unbiased sample is a sample that does not represent the intended population and can lead to distorted findings. Unbiased sampling can occur either intentionally or unintentionally. 57) Answer: True False Explanation: 58) It is recommended that personal demographic questions be placed at the beginning of the questionnaire because respondents find these questions easy to answer. 58) Answer: True False Explanation: 59) Calculating the average time callers wait on the phone for technical support is an example of inferential statistics. 59) Answer: True False Explanation: 60) Interval data deals strictly with qualitative data assigned to predetermined categories. 60) Answer: True False Explanation: 61) To help ensure good questionnaire design, it is recommended that a survey is tested on a small group of respondents before releasing it to the actual participants. 61) Answer: True False Explanation: 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 respondent to a particular answer. 62) Answer: True False Explanation: 63) Statistics can be misused by making differences seem greater or lesser by adjusting the scale on graphs. 63) Answer: True False Explanation: 64) A manager of an electronics store would like to investigate the impact that price has on the demand for laptop computers. Each week, the price of a Dell laptop is adjusted and the demand for each week is recorded. This is an example of an experiment being used to collect data. 64) Answer: True False Explanation: 65) Statistics is the mathematical science that deals with the collection, analysis, and presentation of data–data that can then be used as a basis for inference and induction. 65) Answer: True False Explanation: 66) Nominal data has all the features of interval data with the added benefit of having a true zero point. 66) Answer: True False Explanation: 67) Education level is an example of nominal data. 67) Answer: True False Explanation: 68) A marketing research employee randomly selects adults in a shopping mall and asks them what type of car that they drive. This is an example of using direct observation to collect data. 68) Answer: True False Explanation: 69) Primary data is data collected by the person or organization that eventually uses the data. 69) Answer: True False Explanation: 70) A respondent to a survey indicates that she drives a Ford Taurus. This is an example of qualitative data. 70) Answer: True False Explanation: 71) Analyzing unemployment data from the Bureau of Labor Statistics is an example of using secondary data. 71) Answer: True False Explanation: 13

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

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

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