Test Bank for Business Statistics: A Decision-Making Approach, 10th Edition

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TESTITEMFILELINDADAWSONUniversity of Washington TacomaBUSINESSSTATISTICSADECISION-MAKINGAPPROACHTENTHEDITIONDavid F. GroebnerBoise State UniversityPatrick W. ShannonBoise State UniversityPhillip C. FryBoise State University

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1-1Business Statistics, 9e(Groebner/Shannon/Fry)Chapter 1The Where, Why, and How of Data Collection1) Statistics is a discipline that involves tools and techniques used to describe data and draw conclusions.Answer: TRUEDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none2) In this course, the termbusiness statisticsrefers to the set of tools and techniques that are used toconvert information into meaningful data.Answer: FALSEDiff: 1Keywords: descriptive statistics and/or inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none3) Descriptive statistics allow a decision maker to reach a conclusion about a population based on asubset from the population.Answer: FALSEDiff: 2Keywords: descriptive statistics and/or inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none4) An accountant has recently prepared a report for a client that contains a variety of graphs and charts.In doing so, she has used descriptive statistical methods.Answer: TRUEDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none5) Descriptive statistical tools include graphs, charts, and numerical measures.Answer: TRUEDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none6) A histogram is an example of a numerical measure.Answer: FALSEDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none

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1-27) Companies frequently use charts and graphs in their regular communications with stockholders andinvestors; this shows the use of descriptive statistics.Answer: TRUEDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none8) A manufacturing manager has developed a table that shows the average production volume each dayfor the past three weeks. The average production level is an example of a numerical measure.Answer: TRUEDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none9) An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in aneffort to estimate the percentage of all accounts that have incorrect journal entries is using descriptivestatistical analysis to reach the conclusion.Answer: FALSEDiff: 2Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none10) The editor of a local newspaper is interested in determining the percentage of subscribers who readthe paper's editorials. The statistical technique that he would use is called estimation.Answer: TRUEDiff: 2Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none11) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about alarge data set based on a subset of the data.Answer: TRUEDiff: 1Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none12) Another term for the arithmetic average is the mean.Answer: TRUEDiff: 1Keywords: descriptive statistics, meanSection: 1-1 What Is Business Statistics?Outcome: none

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1-313) Statistical inference would be used as the primary statistical tool by a quality control manager whowishes to estimate the average weight of her company's products.Answer: TRUEDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none14) A light bulb manufacturer wants to advertise the average life of its light bulbs so it tests a subset oflight bulbs. This is an example of inferential statistics.Answer: TRUEDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none15) A sales manager has five salespeople. The following are the number of units sold by the fivesalespeople during the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number of units sold was 6units.Answer: TRUEDiff: 2Keywords: descriptive statistics, meanSection: 1-1 What Is Business Statistics?Outcome: none16) Some of the most common methods of collecting data include experiments, telephone surveys, mailquestionnaires, direct observations, and personal interviews.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 117) An experiment is a process that generates data as its outcome.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 118) Experimental design is a plan for performing an experiment where the effects of one or more factorson the variable of interest are measured.Answer: TRUEDiff: 2Keywords: data collection, experimentsSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-419) Typically, it is possible to include a larger number of questions in a phone survey than in a mailsurvey since it takes less time to complete the survey over the phone.Answer: FALSEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 120) An Internet-based or emailed survey is not an alternative method of data collection.Answer: FALSEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 121) An open-end question requires respondents to choose from a short list of choicesAnswer: FALSEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 122) A short survey with closed-end questions is likely to have a better response rate than a long surveywith open-ended questions.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 123) The Cranston Company recently met with a group of its customers to ask questions about the serviceand products provided by the company. The data collected in this process would be an example of datacollected through direct observation.Answer: FALSEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 124) The Georgia Company, a pharmaceutical company, recently conducted a study in which 20 peoplewere given a new drug and 20 other people were given a placebo. The objective was to determinewhether there was a difference in pain relief between those using the new drug versus those using theplacebo. The data collection used here is an example of an experiment.Answer: TRUEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-525) When comparing experiments, surveys, and direct observation as methods of data collection, themethod that would typically be the least expensive is surveys.Answer: TRUEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 126) Assuming that you are planning to collect data using an experiment, it will be very important toestablish an appropriate survey design.Answer: FALSEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 127) Mail questionnaires typically generate poor response rates.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 128) In an unstructured interview the questions are scripted.Answer: FALSEDiff: 1Keywords: data collection, interviewsSection: 1-2 Procedures for Collecting DataOutcome: 129) One way to improve the response rate for a survey is to administer the surveys directly to therespondents.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 130) On a survey, the questions pertaining to the background of the respondent (age, gender, etc.) arereferred to as demographic questions.Answer: TRUEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-631) When an interviewer asks a specified series of questions in the course of a personal interview, he/sheis conducting an unstructured interview.Answer: FALSEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 132) The marketing division of a company is interested in determining whether increased advertising willincrease sales in three of its target cities. Three levels of advertising are used and the sales are recordedfor the month immediately following the ads. In this case, the data are considered to have been collectedusing an experiment.Answer: TRUEDiff: 2Keywords: data collection, surveySection: 1-2 Procedures for Collecting DataOutcome: 133) Data collected using open-end questions is generally easier to analyze than data collected fromclosed-end questions.Answer: FALSEDiff: 1Keywords: data collection, surveySection: 1-2 Procedures for Collecting DataOutcome: 134) One of the advantages of data check sheets is that as the data are being recorded, they are also beingdisplayed in a useful format.Answer: TRUEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 135) The primary purpose of performing a pre-test when developing a telephone or mail survey is to makesure that the respondents can understand the questions and are able to provide meaningful responses.Answer: TRUEDiff: 2Keywords: data collection, protestSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-736) Close-end questions provide the greatest opportunity to obtain ideas and thoughts on the part ofthose surveyed but the resulting data are more difficult to analyze.Answer: FALSEDiff: 1Keywords: data collection, surveySection: 1-2 Procedures for Collecting DataOutcome: 137) Questions on a written survey dealing with the characteristics of the respondent (age, income, etc.) arereferred to as categorical questions.Answer: FALSEDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 138) Open-end questions are typically included in a survey when the objective is to provide the maximumopportunity for the respondent to express his or her opinion.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 139) The method of data collection called direct observation is always associated with gathering data frompeople.Answer: FALSEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 140) Data gathered from a structured interview is generally easier to analyze than data collected from anunstructured interview.Answer: TRUEDiff: 1Keywords: data collection, structured interviewSection: 1-2 Procedures for Collecting DataOutcome: 141) When a survey is done you can always assume that non-respondents would have answered the sameway as those who did respond.Answer: FALSEDiff: 2Keywords: data collection, nonresponse biasSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-842) When a company scans the bar codes on its products in an effort to count the number of products thatremain in inventory, the company is collecting data through experimentation.Answer: FALSEDiff: 2Keywords: data collection, UPCSection: 1-2 Procedures for Collecting DataOutcome: 143) Data collected on the Internet can generally be considered accurate since the data must go through ascreening process before they can be placed on the Internet.Answer: FALSEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 144) It is possible for an interviewer to interject bias into the data collection project by the way he or sheasks the questions.Answer: TRUEDiff: 1Keywords: data collection, biasSection: 1-2 Procedures for Collecting DataOutcome: 145) When people fail to respond to a survey, the data collection process may suffer from nonresponsebias.Answer: TRUEDiff: 1Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 146) Selection bias occurs when the respondent decides which of the questions on the survey to answer.Answer: FALSEDiff: 2Keywords: data collection, biasSection: 1-2 Procedures for Collecting DataOutcome: 147) Recently, an analyst in a company's marketing department surveyed customers regarding how oftenthey buy a particular product. One customer indicated that she purchased the product 17 times in the lastsix months, but the analyst recorded the response as 71 times. This is an example of observer bias.Answer: FALSEDiff: 2Keywords: data collection, biasSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-948) When the United States conducts a census that counts all people in the country, this is an example ofusing a sample.Answer: FALSEDiff: 1Keywords: population, sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 249) When the marketing manager for a large company surveys a portion of the total customers of hiscompany, he is using a sample from the population.Answer: TRUEDiff: 1Keywords: sample, populationSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 250) A census is an enumeration of the entire sample of items selected from the population of interest.Answer: FALSEDiff: 2Keywords: sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 251) A sample is selected from a population in cases where selecting data from the entire population iseither very difficult or very expensive.Answer: TRUEDiff: 1Keywords: sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 252) A parameter is the boundary on the population of interest.Answer: FALSEDiff: 1Keywords: parameter, populationSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 353) Population parameters are descriptive numerical measures, such as an average, that describe theentire population.Answer: TRUEDiff: 1Keywords: parameterSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-1054) Statistics are measures computed from the entire population of data.Answer: FALSEDiff: 1Keywords: statisticsSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 255) When the production manager selects a sample of items that have been produced on her productionline and computes the proportion of those items that are defective, the proportion is referred to as astatistic.Answer: TRUEDiff: 2Keywords: statistics, proportionSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 356) The First National Bank mailed out a survey to all 3,456 savings account customers. A total of 568surveys were returned. Values computed from the returned surveys would constitute parameters sinceall 568 customers were surveyed.Answer: FALSEDiff: 2Keywords: parameter, statisticSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 357) If an analyst computes statistics from a sample, the sample is by definition a statistical sample.Answer: FALSEDiff: 2Keywords: sample, statisticSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 358) When university newspaper reporters take a poll of students by standing outside of the nearest pub tosurvey students about the university offering upgraded food options, the sampling method used is calleda random sample.Answer: FALSEDiff: 2Keywords: convenience sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 359) A pharmaceutical company conducts a study where 50 patients are given a drug. They find that 10percent of patients experience nausea as a side effect. This 10 percent is an example of a parameter.Answer: FALSEDiff: 2Keywords: parameter, statisticSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-1160) It is possible for a nonstatistical sample to yield statistics that have values closer to the correspondingparameter than will a statistical sample.Answer: TRUEDiff: 3Keywords: nonstatistical sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 361) One of the most common statistical sampling techniques is convenience sampling.Answer: FALSEDiff: 2Keywords: convenience sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 362) Possibly the most frequently used nonstatistical sampling procedure is the simple random sample.Answer: FALSEDiff: 1Keywords: simple random sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 363) A common underpinning of all statistical sampling techniques is the concept of random selection.Answer: TRUEDiff: 1Keywords: random sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 364) Simple random sampling involves selecting members of the population in such a way that allmembers are equally likely to be chosen.Answer: TRUEDiff: 1Keywords: sampling techniquesSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 365) When stratified random sampling is employed, the population is divided into homogeneoussubgroups called strata.Answer: TRUEDiff: 2Keywords: stratified random sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-1266) In election years, the polls that are conducted by such companies as Gallup and Harris typicallyemploy stratified random sampling to reduce the number of people that will need to be surveyed.Answer: TRUEDiff: 2Keywords: stratified random sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 367) If a state agency wishes to conduct on-site surveys of small businesses throughout the state, clustersampling could potentially be used to reduce the geographical area over which the surveys would needto be conducted.Answer: TRUEDiff: 2Keywords: cluster sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 368) Cluster sampling is the same thing as stratified random sampling.Answer: FALSEDiff: 1Keywords: sampling techniquesSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 369) When a small sample is used, a stratified random sample is more likely to provide the desiredinformation than a simple random sample.Answer: TRUEDiff: 2Keywords: sampling techniquesSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 370) Suppose a professor collects survey data by passing out surveys in his/her classes, where thepopulation of interest is defined as all students enrolled at that university. This is an example ofnonstatistical sampling technique.Answer: TRUEDiff: 2Keywords: sampling techniquesSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 371) One of the reasons that managers prefer statistical sampling to nonstatistical sampling is thatstatistical sampling is generally easier to perform and less expensive.Answer: FALSEDiff: 2Keywords: statistical sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-1372) A market research firm that surveys customers in a shopping mall by asking various people torespond to a short survey about a new product is performing convenience sampling.Answer: TRUEDiff: 2Keywords: convenience sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 373) If a population is very large, it may be better to select a sample from the population than to try toobtain a census in an effort to reduce measurement error.Answer: TRUEDiff: 2Keywords: measurement error, data collectionSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 374) The sales data for a company measured in the week following an increased ad campaign would beconsidered cross-sectional data.Answer: TRUEDiff: 1Keywords: data type, cross-sectionalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 475) When students are asked to list their age and the percentage of their college expenses that they payfor themselves, the type of data being collected is quantitative.Answer: TRUEDiff: 2Keywords: data type, quantitativeSection: 1-4 Data Types and Data Measurement LevelsOutcome: 476) It is possible for the same survey questionnaire to yield both quantitative and qualitative data.Answer: TRUEDiff: 1Keywords: data type, quantitative, qualitativeSection: 1-4 Data Types and Data Measurement LevelsOutcome: 477) Sales data measured each week for the past twenty weeks are examples of time-series data.Answer: TRUEDiff: 1Keywords: data type, time seriesSection: 1-4 Data Types and Data Measurement LevelsOutcome: 4

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1-1478) Recording vehicle type as sedan, minivan, pick-up truck, etc. is an example of qualitative data.Answer: TRUEDiff: 1Keywords: data typeSection: 1-4 Data Types and Data Measurement LevelsOutcome: 479) When customers return a product to a store and the store asks the customer to indicate the reason thatthe merchandise was returned, the resulting data are quantitative since multiple people will be providingthe data.Answer: FALSEDiff: 2Keywords: data type, qualitativeSection: 1-4 Data Types and Data Measurement LevelsOutcome: 480) Nominal data is the highest level of data.Answer: FALSEDiff: 1Keywords: measurement levelsSection: 1-4 Data Types and Data Measurement LevelsOutcome: 481) At the end of the school term, students are asked to rate the course and instructor by indicating on ascale of 1-5 how well they liked the course. The data generated from this question are examples of ordinaldata.Answer: TRUEDiff: 2Keywords: data type, ordinalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 482) On a survey, amount of education is recorded as some high school, high school graduate, somecollege, college graduate, etc. This is an example of ordinal data.Answer: TRUEDiff: 1Keywords: measurement levelsSection: 1-4 Data Types and Data Measurement LevelsOutcome: 483) A variable, i.e., the length of time it takes for an employee to complete an assembly procedure at anautomotive plant, is a ratio level variable.Answer: TRUEDiff: 2Keywords: levels of measurement, ratioSection: 1-4 Data Types and Data Measurement LevelsOutcome: 4

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1-1584) A variable that has all the properties of an interval variable, but also has a true zero, is a ratio levelvariable.Answer: TRUEDiff: 2Keywords: levels of measurement, ratioSection: 1-4 Data Types and Data Measurement LevelsOutcome: 485) Cross-sectional data is a set of data values observed at successive points in time.Answer: FALSEDiff: 1Keywords: data type, time seriesSection: 1-4 Data Types and Data Measurement LevelsOutcome: 486) Data collected on marital status (married, divorced, single, other) would be an ordinal level variable.Answer: FALSEDiff: 2Keywords: data type, ordinalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 487) Recently, a bank manager pulled a sample of customer accounts and recorded data for two variables,checking account balance and total number of transactions during the previous 30 days. The datacollected would be considered time-series data.Answer: FALSEDiff: 2Keywords: data type, time seriesSection: 1-4 Data Types and Data Measurement LevelsOutcome: 488) Flavors of ice cream (chocolate, vanilla, strawberry, etc.) are an example of nominal data.Answer: TRUEDiff: 1Keywords: measurement levelsSection: 1-4 Data Types and Data Measurement LevelsOutcome: 489) A major fast-food chain has installed a device that measures the temperature of the hamburgers onthe grill. These data are stored in a computer file. If you were to analyze these data, you would beworking with ordinal level data.Answer: TRUEDiff: 2Keywords: levels of measurement, ordinalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 4

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1-1690) The difference between interval data and ratio data is that interval data has a natural zero.Answer: FALSEDiff: 2Keywords: measurement levelsSection: 1-4 Data Types and Data Measurement LevelsOutcome: 491) If you have an ordinal variable, it is possible to precisely measure the magnitude of the differencebetween the possible values of the variable.Answer: FALSEDiff: 3Keywords: levels of measurement, ordinalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 492) A cell phone service provider has 14,000 customers. Recently, the sales department selected a randomsample of 400 customer accounts and recorded the number of minutes of long distance time used duringthe previous billing period. The data for this variable is considered to be nominal since the values arebased on sample data.Answer: FALSEDiff: 2Keywords: levels of measurement, nominalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 493) A cell phone service provider has 14,000 customers. Recently, the sales department selected a randomsample of 400 customer accounts and recorded the number of minutes of long distance time used duringthe previous billing period. The company analyst used Excel to sort these values in order from high tolow. She then assigned the highest value a rank of 1, the next highest value a rank of 2, and so forth.These ranks would be considered to be ordinal data.Answer: TRUEDiff: 2Keywords: levels of measurement, ordinalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 494) A survey conducted by a local real estate agency asked respondents to indicate whether theypreferred natural gas, electric, or oil furnaces for heating their home. The data collected for this variablewould be of ordinal level.Answer: FALSEDiff: 2Keywords: levels of measurement, ordinalSection: 1-4 Data Types and Data Measurement LevelsOutcome: 4

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1-1795) A small engine repair shop tracks the number of customers who call each day. This variable is a time-series variable and also ratio level.Answer: TRUEDiff: 2Keywords: levels of measurement, time series, ratioSection: 1-4 Data Types and Data Measurement LevelsOutcome: 496) The use of charts and graphs is an example of:A) descriptive statistics.B) inferential statistics.C) estimation.D) hypothesis testing.Answer: ADiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none97) When an administrator at a local hospital prepares a series of charts and graphs pertaining to thepatients that have stayed at the hospital during the past month, she is using which general category ofstatistical analysis?A) Quantitative statisticsB) Inferential statisticsC) Descriptive statisticsD) Random samplingAnswer: CDiff: 2Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none98) Which of the following is an example of graphs used to describe data?A) HistogramsB) Bar chartsC) Both A and B are correct.D) None of the above.Answer: CDiff: 1Keywords: descriptive statistics, graphsSection: 1-1 What Is Business Statistics?Outcome: none

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1-1899) When a marketing manager surveys a few of the customers for the purpose of drawing a conclusionabout the entire list of customers, she is applying:A) inferential statistics.B) descriptive statistics.C) quantitative models.D) numerical measures.Answer: ADiff: 1Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none100) When the park ranger at Yellowstone National Park reports the average length of time that visitorsspend in the park, he is using:A) graphical tools.B) numerical measures.C) statistical charts.D) histograms or bar charts.Answer: BDiff: 2Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none101) A car manufacturer stated in its advertising that the gas mileage for its hybrids will be greater than40 mpg on average. A consumer agency tested a sampling of the hybrids under a variety of conditions.Based on these tests, the agency concluded that the manufacturer was justified in making this claim. Theprocess described is an example of:A) descriptive statistics.B) hypothesis testing.C) statistical inference.D) Both B and C are correct.Answer: DDiff: 2Keywords: descriptive statistics, inferential statistics, hypothesis testingSection: 1-1 What Is Business Statistics?Outcome: none

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1-19102) A consumer products company is considering introducing a new product nationally. To help makethe decision, it first conducts a test market by selling the product for a few months in one city. This is anexample of:A) descriptive statistics.B) charts and graphs.C) estimation.D) hypothesis testing.Answer: CDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none103) The Biltmore Hotel manager is getting ready to make a presentation that she hopes will justifyadding additional staff. As part of the presentation, she has constructed charts and graphs. The generaltype of statistical analysis she is using is:A) hypothesis testing.B) estimation.C) inferential statistics.D) descriptive statistics.Answer: DDiff: 2Keywords: descriptive statistics, graphsSection: 1-1 What Is Business Statistics?Outcome: none104) Estimation and hypothesis testing are categories of:A) inferential statistics.B) descriptive statistics.C) numerical measurement.D) statistical charts.Answer: ADiff: 1Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none105) A political poll that is used to indicate the percentage of voters who will vote for a particularcandidate makes use of which of the following?A) Hypothesis testingB) Numerical analysisC) EstimationD) Both B and CAnswer: DDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none

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1-20106) The company that makes a new weight loss pill claims that people who use this pill according toinstructions will lose an average of 20 pounds during a four-month period. They say the claim is based ona study of 300 people. Which of the following statistical methods was most likely used to arrive at thecompany's conclusion?A) EstimationB) Hypothesis testingC) HistogramsD) Bar chartsAnswer: BDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none107) When the California Highway Patrol states that a study of drivers on a rural highway shows that theaverage speed is between 62.5 mph and 64.5 mph, they are most likely basing this statement on:A) descriptive statistics.B) estimation.C) hypothesis testing.D) graphical analysis.Answer: BDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none108) The summaries of data, which may be in forms of tabular, graphical, or numerical, are referred to as:A) inferential statistics.B) descriptive statistics.C) statistical inference.D) report generation.Answer: BDiff: 1Keywords: descriptive statisticsSection: 1-1 What Is Business Statistics?Outcome: none

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1-21109) Based on a survey of 400 students in a university in which 20 percent indicated that they werebusiness majors. The university student newspaper reported that "20 percent of all the students at theuniversity are business majors." This report is an example of:A) a sample.B) a population.C) statistical inference.D) descriptive statistics.Answer: CDiff: 2Keywords: inferential statisticsSection: 1-1 What Is Business Statistics?Outcome: none110) A company is interested in determining which of several advertising layouts is most effective atgenerating additional sales. The data collection tool that would most likely be used in this situation is:A) telephone survey.B) mail questionnaire.C) experiment.D) observation.Answer: CDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 1111) A company conducted a survey of its employees to determine their level of satisfaction with variouscompany policies. The data collected from this survey are:A) primary data.B) secondary data.C) experimental data.D) census data.Answer: ADiff: 2Keywords: data collection, primary dataSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-22112) The Dalton Company has recently made a decision to build a new plant in Denver. In making thisdecision it used data supplied by the U.S. Census Bureau. For the Dalton Company, these data areexamples of:A) primary data.B) secondary data.C) reliable data.D) experimental data.Answer: BDiff: 1Keywords: data collection, secondary dataSection: 1-2 Procedures for Collecting DataOutcome: 1113) An Internet service provider wants to determine its level of customer satisfaction. The best datacollection method to obtain the results most quickly is:A) experiment.B) telephone survey.C) mailed survey.D) personal interview.Answer: BDiff: 2Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 1114) A tire manufacturing company is interested in obtaining data on stopping distances for each of thethree main tread types made by the company. The data collection method that would be most likely usedin this case would be:A) telephone survey.B) written questionnaire.C) demographic surveying.D) experiments.Answer: DDiff: 2Keywords: data collection, experimentalSection: 1-2 Procedures for Collecting DataOutcome: 1115) Which of the following data collection methods is most likely to generate the largest nonresponse?A) Mail surveysB) Direct observationC) Telephone surveysD) Personal interviewsAnswer: ADiff: 2Keywords: data collection, mail surveysSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-23116) In developing and conducting a survey, what is the purpose of the pre-test phase?A) To make sure that the cost of developing the survey instrument is not too greatB) To generate initial data for analysisC) To catch any problems with the questionnaire before it is fully administeredD) To make sure that the respondents like the issues being addressed by the surveyAnswer: CDiff: 2Keywords: data collection, survey pre-testSection: 1-2 Procedures for Collecting DataOutcome: 1117) For which data collection method is it most important to have a polished-looking survey form?A) Telephone surveyB) Written questionnaireC) Experimental designD) Personal interviewAnswer: BDiff: 1Keywords: data collection, questionnaireSection: 1-2 Procedures for Collecting DataOutcome: 1118) Which of the following types of questions provide the respondent with the greatest choice inresponding to a question?A) Open-end questionsB) Close-end questionsC) Multiple choice questionsD) True/false questionsAnswer: ADiff: 1Keywords: data collection, open-endedSection: 1-2 Procedures for Collecting DataOutcome: 1119) A consumer products company wants to interview customers regarding a new product. If it wishesto adhere to a predetermined pattern of questions in the interview, which of the following would likelybe used?A) Structured interviewB) Open-end questioningC) Unstructured interviewD) Written questionnaireAnswer: ADiff: 2Keywords: data collection, structured interviewSection: 1-2 Procedures for Collecting DataOutcome: 1

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1-24120) A marketing researcher decides to perform in-depth interviews for ten individuals chosen from agroup of twenty five consumers who taste tasted some new food products. In conducting a personalinterview, what problem can result if the interviewer is arbitrarily decides who will be interviewed?A) NonresponsesB) Missing dataC) BiasD) Poor response rateAnswer: CDiff: 2Keywords: data collection, biasSection: 1-2 Procedures for Collecting DataOutcome: 1121) One of the major challenges for developing a good written questionnaire or telephone surveyinstrument is that:A) nonresponses are too high.B) there will always be missed data.C) bias cannot be controlled.D) wording can influence responses.Answer: DDiff: 3Keywords: data collectionSection: 1-2 Procedures for Collecting DataOutcome: 1122) When an accounting auditor randomly selects 20 accounts from all the accounts to check foraccuracy, she has selected:A) a personal observation.B) a sample from the population.C) a census.D) a convenience sample.Answer: BDiff: 1Keywords: data collection, sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 2123) An Internet service provider has the capability of tracking the time that each of its customers spendsconnected to the Internet during a month. These data would constitute:A) a simple random sample.B) a convenience sample.C) a cluster sample.D) a population.Answer: DDiff: 2Keywords: data collection, populationSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 2

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1-25124) A professor hands out survey forms during her classes, where the population is all studentsattending the college. This is an example of:A) a convenience sample.B) a simple random sample.C) a stratified sample.D) a cluster sample.Answer: ADiff: 1Keywords: convenience samplingSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3125) Another term used for statistical sampling is:A) probability sampling.B) convenience sampling.C) ratio sampling.D) numerical sampling.Answer: ADiff: 1Keywords: probability sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3126) A retail store is interested in determining what its customers are looking for specifically when theygo to the store. To collect the necessary data, interviewers stand near the store's entrance and surveyevery 10thcustomer. This type of sampling is called:A) systematic random sampling.B) ratio sampling.C) convenience sampling.D) stratified sampling.Answer: ADiff: 2Keywords: systematic random samplingSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-26127) The Polson Pole and Fence Company recently did a quality check on the length of fence posts. To dothis, each of the 400 posts in inventory was numbered. Numbers from 1 to 400 were placed in a bowl.Twenty numbers were selected from the bowl without looking. These 20 poles were the ones selected forthe study. This type of sampling is called:A) cluster sampling.B) simple random sampling.C) nonstatistical.D) convenience sampling.Answer: BDiff: 2Keywords: simple random samplesSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3128) In order to determine a parameter (such as a mean) of a population you would need to conduct a:A) population.B) random sample.C) census.D) statistic.Answer: CDiff: 2Keywords: population, parameterSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3129) If a systematic random sample is to be selected of size 100 from a population with 5,000 items, thefirst item selected from the ordered population will be:A) randomly selected between 1 and 100.B) randomly selected between 1 and 50.C) any randomly selected value between 1 and 5,000.D) item 50.Answer: BDiff: 2Keywords: systematic sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-27130) If a stratified random sample is to be conducted, which of the following is true?A) The population will be broken down into subgroups called strata.B) Each subgroup should contain items that are homogeneous with respect to the characteristic ofinterest.C) If effective, the total required sample size should be less than that which would be needed if a simplerandom sample were selected.D) All of the above.Answer: DDiff: 2Keywords: stratified sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3131) A food warehouse manager plans to conduct a check on damaged packages. The warehouse covers alarge area and products are spread out over the entire building. Assuming that no products are morelikely to have damaged packages than any other, what statistical sampling method would be used toreduce the time and effort required to do the study?A) Convenience samplingB) Stratified random samplingC) Cluster random samplingD) Systematic random samplingAnswer: CDiff: 3Keywords: cluster sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3132) Some stores and restaurants have "tell us what you think" cards available for customers. Assumingthat angry customers are more likely to take the time to fill these out, this is an example of:A) simple random sampling.B) stratified sampling.C) cluster sampling.D) nonstatistical sampling.Answer: DDiff: 2Keywords: sampling methodsSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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1-28133) The mayor of a large U.S. city is interested in addressing complaints from many property ownersregarding recent property assessments. Many people feel that they are being overtaxed and that theirassessments are too high. To study this issue, the mayor plans to hire consultants to randomly selecthomes in the city and have these homes independently assessed for value. However, she is concernedthat the cost of sampling will be very high since the city is spread out over a wide geographical area. Topotentially reduce the cost of sampling, which of the following statistical sampling techniques should beapplied?A) Cluster samplingB) Ratio samplingC) Simple random samplingD) Stratified random samplingAnswer: ADiff: 3Keywords: sampling methodsSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3134) The human resources department at a major high tech company plans to conduct an employeesatisfaction study by sampling 100 employees from the 3,000 total employees. They plan to use systematicrandom sampling since the employee file is in alphabetic order. The first employee selected in the studyshould be:A) the 30th employee.B) employee 1 to 30 randomly selected.C) employee 1 to 100 randomly selected.D) the first employee.Answer: BDiff: 2Keywords: systematic random sampleSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3135) A value computed from a population is called:A) a statistic.B) a real number.C) a parameter.D) a point estimate.Answer: CDiff: 1Keywords: statisticSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 2

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1-29136) Which of the following statements is true?A) Random samples are easier to select than nonstatistical samples.B) Nonstatistical samples can provide useful data.C) Stratified random sampling involves breaking the population down into geographic subgroups.D) Systematic sampling is an example of nonstatistical sampling.Answer: BDiff: 2Keywords: nonstatistical samplingSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3137) In Excel, what procedure is used to select random numbers?A) The random numbers functionB) Click on the Data tab, then click on Data Analysis, then click on SamplingC) Click on the Data tab, then click on Data Analysis, then click on Random Number GenerationD) Random numbers are not available in Excel.Answer: CDiff: 2Keywords: Excel, random number generationSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3138) A sampling plan that requires a person to interview 100 people as they exit a department storewould most likely be:A) a simple random sample.B) a convenience sample.C) a systematic random sample.D) a stratified sample.Answer: BDiff: 2Keywords: convenience samplesSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3139) Which one of the following is NOT statistical sampling?A) Simple random sampleB) Stratified random samplingC) Cluster samplingD) Convenience samplingAnswer: DDiff: 3Keywords: statistical and nonstatistical samplingSection: 1-3 Populations, Samples and Sampling TechniquesOutcome: 3

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