Chapter 1 An Introduction to Business Statistics

True/False 1. A population is a set of existing units. Answer: True Difficulty: Easy 2. If we examine some of the population measurements, we are conducting a census of the population. Answer: False Difficulty: Medium 3. A random sample is selected so that on each selection from the population every unit remaining in the population has an equal chance of being chosen. Answer: True Difficulty: Easy 4. A process is in statistical control if it does not exhibit any unusual variations. Answer: True Difficulty: Easy 5. An example of a quantitative variable is the make of a car. Answer: False Difficulty: Easy 6. An example of a qualitative variable is the mileage of a car. Answer: False Difficulty: Easy 7. Statistical inference is the science of using a sample of measurements to make generalization about the important aspects of a population of measurements. Answer: True Difficulty: Medium 8. If we sample without replacement, we do not place the unit chosen on a particular selection back into the population. Answer: True Difficulty: Medium

Bowerman, Essentials of Business Statistics, 2/e


Answer: True Difficulty: Medium Multiple Choice 13. Errors of observation are a class of survey error.9. Answer: True Difficulty: Medium 11. When beginning a study. we are approximating a random sample of shoppers. Answer: False Difficulty: Medium 12. 2/e . Answer: True Difficulty: Medium 10. we are: A) Sampling with Replacement B) Sampling without Replacement C) Using a Systematic Sample D) Using a Voluntary Response Sample Answer: B Difficulty: Medium (REF) 2 Bowerman. we define our variable of interest called a response variable. True/False questions are a general type of survey questions. Statistical methods help to: A) Demonstrate the need for improvement B) Identify ways to make improvements C) Assess whether or not improvement activities have been successful D) Estimate the benefits of improvement E) All of the above Answer: E Difficulty: Easy (REF) 14. Essentials of Business Statistics. By taking a systematic sample. Ratio variable have the following characteristics: A) Meaningful order B) an inherently defined zero value C) Categorical in nature D) Predictable Answer: B Difficulty: Easy 15. When we are choosing a random sample and we do not place chosen units back into the population. in which we select every 100th shopper arriving at a specific store.

Which of the following is a categorical variable? A) Air Temperature B) Bank Account Balance C) Daily Sales in a Store D) Whether a Person Has a Traffic Violation E) Value of Company Stock Answer: D Difficulty: Medium 18. Which of the following is a quantitative variable? A) The make of a TV B) A person's gender C) Mileage of a car D) Whether a person is a college graduate E) Whether a person has a charge account Answer: C Difficulty: Easy 17. The two types of quantitative variables are: A) Ordinal and ratio B) Interval and ordinal C) Nominative and ordinal D) Interval and ratio E) Nominative and interval Answer: D Difficulty: Medium Bowerman. Measurements from a population are called A) Statistics B) Observations C) Variables D) Processes Answer: B Difficulty: Medium 19. A) Random Sampling B) Statistics C) Variable D) Quality Answer: D Difficulty: Easy (REF) 20. In studying processes. we are interested in examining a characteristic that tells us about the _____ of output. 2/e 3 . Essentials of Business Statistics.16.

Temperature (in degrees Fahrenheit) is an example of a(n) ________ variable. A) Nominative B) Ordinal C) Interval D) Ratio Answer: A Difficulty: Medium 23. A) Nominative B) Ordinal C) Interval D) Ratio Answer: C Difficulty: Medium 22. Essentials of Business Statistics. Jersey numbers of soccer players is an example of a(n) ___________ variable. A) Nominative B) Ordinal C) Interval D) Ratio Answer: B Difficulty: Medium 25.21. An identification of police officers by rank would represent a(n) ____________ level of measurement. __________ is a necessary component of a runs plot A) Observation over time B) Qualitative variable C) Random sampling of the data D) Voluntary response data Answer: A Difficulty: Medium 4 Bowerman. Weights of items obtained using a well-adjusted scale represents a(n) _____________ level of measurement. A) Nominative B) Ordinal C) Interval D) Ratio Answer: D Difficulty: Medium 24. 2/e .

are an example of a(n) ________________ variable. Which one of the following sampling examples would generally lead to the least reliable statistical inferences about the population from which the sample has been selected? A) A random sample selected without replacement. Essentials of Business Statistics. A(n) ___________________ variable is a qualitative variable such that there is no meaningful ordering or ranking of the categories. A) Nominative B) Ordinal C) Interval D) Ratio Answer: C Difficulty: Medium 29. B) A random sample selected with replacement. The number of miles a truck is driven before it is overhauled is an example of a(n) _____________ variable. A) Ordinal B) Ratio C) Nominative D) Interval Answer: D Difficulty: Hard 28. A) Statistical Process Control B) Descriptive Statistics C) Random sample D) Statistical Inference Answer: D Difficulty: Easy 27. 2/e 5 . ______________ is the science of using a sample to make generalizations about the important aspects of a population.26. A) Ratio B) Ordinal C) Nominative D) Interval Answer: C Difficulty: Easy Bowerman. C) A voluntary response sample D) A systematic sample Answer: C Difficulty: Medium (REF) 30. such as SAT scores. College entrance exam scores.

Any characteristic of a population unit is a(n): A) Measurement B) Sample C) Observation D) Variable Answer: D Difficulty: Medium 33. A list of all of the units in a population is called _____. 2/e . A) Census B) Frame C) A sample D) A variable Answer: A Difficulty: Medium 34. A person's telephone area code is an example of a(n) _____________ variable. Which of the following is not a type of survey? A) Personal interviews B) Phone surveys C) Mail surveys D) Mall surveys Answer: D Difficulty: Easy 35. A) Nominative B) Ordinal C) Interval D) Ratio Answer: A Difficulty: Medium 32. Which of the following is not a type of survey questions? A) Multiple Choice B) Pilot C) Open ended D) Dichotomous Answer: B Difficulty: Easy 6 Bowerman. Essentials of Business Statistics.31.

_______is the differences between the values of the sample statistic and the population parameter. An _____ study is a study in which we make statistical inferences about a population of existing units. 2/e 7 . Essentials of Business Statistics. __________ occurs when some population units are excluded from the process of selecting the sample. Answer: Variable Difficulty: Medium 42. A _____ is an examination of all the units in a population. In order to improve the quality of products and services. Answer: Sampling error Difficulty: Medium 37. Answer: Census Difficulty: Easy 44. Answer: Undercoverage Difficulty: Medium 38. The goal of _____ is to stabilize and reduce the amount of process variation.Fill-in-the-Blank 36. they may not tell the truth. Answer: Statistical Process Control Difficulty: Medium 43. Any characteristic of a population is called a _____. ___________ is the entire population of interest to us in a particular study. This is called ____________. If a survey instrument contains personal questions and respondents feel obligated to answer. we must remove the root causes of process _____. Answer: Target population Difficulty: Medium 39. Answer: Variation Difficulty: Medium 41. Answer: Response bias Difficulty: Hard 40. Answer: Enumerative Difficulty: Medium Bowerman.

Answer: Frame Difficulty: Medium 46. A _____ is a list of all the units in a population. Answer: Runs Plot Difficulty: Easy 48. A _____ variable can have values that are numbers on the real number line. Statistical _____ refers to using a sample of measurements making generalizations about the important aspects of a population. Answer: Quantitative Difficulty: Medium 51. Answer: Inference Difficulty: Easy 49. A set of existing units we wish to study is called a _____. A _____ variable can have values that indicate into which of several segments of a population it belongs. A sequence of operations that takes inputs and turns them into outputs is a _____. Answer: Descriptive statistics Difficulty: Medium 8 Bowerman. Answer: Measurement Difficulty: Medium 47. Answer: Process Difficulty: Medium 52. Answer: Sample Difficulty: Easy 50.45. Essentials of Business Statistics. A _____ is a subset of the units in a population. _____ refers to describing the important aspects of a set of measurements. Answer: Qualitative Difficulty: Medium 53. 2/e . Answer: Population Difficulty: Medium 54. A ____ is a graph of individual process measurements versus time. The process of assigning a value of a variable to each unit in a population or sample is called _____.

A _____ table is used to help select items for a random sample. 2/e 9 . A runs plot with an erratic pattern would indicate that the process is _____. Answer: Random and systematic Difficulty: Medium (AS) 63. we are sampling _____ replacement. A process that is in statistical control does not necessarily imply that the process is __________ of meeting the customer requirements. In a voluntary response sample. The change in daily price of a stock is what type of variable? Answer: Quantitative Difficulty: Medium 62. what types of opinions are usually expressed? Answer: Strong/negative Difficulty: Hard Bowerman. Answer: Random number Difficulty: Easy 59. Answer: Systematic Difficulty: Medium 56.55. If a unit is placed back into the population after being selected for a sample. List 2 types of sampling methods. Answer: Capable Difficulty: Hard Essay 60. Essentials of Business Statistics. we often use a _____ sample to approximate a random sample. In situations when it is not possible to number all of the units in a population. Answer: Out of control Difficulty: Medium 57. A consumer's yes/no reply to a survey question is what type of variable? Answer: Qualitative Difficulty: Medium (AS) 61. Answer: With Difficulty: Medium 58.

At the end of one hour. the subjects are given a list of words to memorize and then are asked to repeat the words and the number repeated correctly are counted.Use the following information to answer questions 64-66. Suppose that a psychologist is interested in the effect of drinking on short term memory. 2/e . What is the response variable? Answer: Number of correct words repeated Difficulty: Medium (AS) 65. Essentials of Business Statistics. 64. What type of study is this? Answer: Experimental Difficulty: Hard (AS) 10 Bowerman. She divides her subjects into two groups where Group A consumes 4 1oz alcoholic drinks in one hour and Group B does not drink anything. What are the independent variables? Answer: Drinkers versus Non-drinkers Difficulty: Hard (AS) 66.

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