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Test Bank for Data Analysis and Decision Making Multiple Choice Questions

Q1. Business decisions may be made by interpreting a statistical analysis of the

variables of the process associated with the decision or by using instinct and insight
derived from experience with the business process. When might a decision be made by
these latter more "unstructured" techniques?

The business process on which the decision is made is unknown.

  
Variables associated with the business process cannot be measured.
  
Instinct is part of statistics.
  
Instinct or insight is always used in decision-making.
  

Q2. Which of the following exhibits the correct relationship between variables and
values?
  Color of an automobile; price of an automobile.
  
Red; $23,000.
  
Color of an automobile; $23,000.
  
Red; price of an automobile.
  

Both are variables.

Q3. A statistics professor surveys the students in her class and finds that 20% are
sophomores and 45% are juniors. This is an example of:
inferential statistics.
  
 
secondary data.
  
descriptive statistics.
  
nominal data.
  
Q4. What statistical task performed by the U.S. government led to the development of
computers?

determining import tariffs

  
evaluating the national budget
  
analyzing the census results
  
calculating income taxes
  
Q5.Which of the following does not represent one method to obtain primary source
data?

Sending a survey to customers

  
Looking in professional magazines
  
Conducting an experiment
  
Making observations
  
This is a method of collecting primary data.

Q6. The grades that a random sample of MBA students received over the last five
years of “International Business” classes represent what statistical concept?

  The grades are a parameter.   The grades are a sample.   The grades are a
statistic.   The grades are a population.

The MBA students represent a population, while their grades are a sample.

Q7. What method is used to sample a population so that it is representative of the

population?

All but the observations that have the lowest and highest values are selected.
  
 
Every other element in a population is chosen.
  
Samples are chosen at random from the population.
  
Only the first half of a population is selected.
  
Q8. A newspaper advertising sales representative earns a commission on each
advertisement sold. This person made $3,000 in commissions during one month and
concludes that annual compensation will be $36,000. This is an example of:

nominal data.
  
 descriptive statistics.
  
secondary data.
  
inferential statistics.
  
Q9. A consumer confidence researcher asks several retailers to report the number of
LCD televisions sold during a particular month. These numbers most likely
represent what level of measurement?

nominal
  
ordinal
  
interval
  
ratio
  
Q10. A student evaluation of teaching effectiveness for a particular course asks
students to respond to their level of agreement with several statements according
to the scale 1 = Strongly Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, and 5 =
Strongly Disagree. The responses indicate what level of measurement?

Answer ordinal
:
Though the responses are categorical, a ranking is also indicated.

Q11. A company publishes data on its quarterly earnings for its stockholders to
evaluate. Is this data primary or secondary source data?

Answer: The source is primary for the company and secondary for the
stockholders. The stockholders did not create the data.

Q12. If you have a digital scale in your home that only reads in integers, is your weight
a discrete variable?

Answer No because weight is still a continuous variable regardless of the ability

: to measure it.

Q13. Look at the survey questions that Good Tunes sent to their customers. What type
of variable and levels of measurement do the questions concerning overall
service, selection, and quality of the items purchased represent?

Categorical variables measured on an ordinal scale.

Answer:
Since the possible responses include comparatives such as "excellent" or
"fair", there is an
 implied ranking in the responses.
Q14.A question on a product registration card asks, “How much money do you plan to
spend on DVD movie purchases during the next 6 months?” What type of
variable and level of measurement does your response represent?
Continuous variable measured on a ratio scale.
Answer
:
Currency is continuous, and zero expenditures represents no purchases.
Q15.How might you obtain a statistic, that is a numerical value, from a categorical
variable that has "Yes" or "No" as the only possible responses?
Answer You could count the number of "Yes" and "No" responses in the sample.
:
You could find a numerical measure if you counted the number of responses in each of
the two categories.
MCQ The branch of statistics which deals with development of particular statistical
methods is classified as

A. industry statistics
B. economic statistics
C. applied statistics
D. mathematical statistics

MCQ The tools such decision making by nominal groups, brain storming and term
buildings are all considered as

A. serial tools
B. behavioral tools
C. statistical tools
D. parallel tools

MCQ The model which consists of management philosophy, behavioral tools and

statistical methods as key steps towards improvement is considered as

A. serial improvement process model

B. behavioral improvement process model
C. quality improvement process model
D. statistics improvement process model

MCQ The branch of statistics which deals with findings of solution in the field of
medicine, education and economics is classified as
 A. economic statistics
B. applied statistics
C. mathematical statistics
D. industry statistics

MCQ The analysis based on study of price fluctuations, production of commodities and

deposits in banks is classified as

A. sample series analysis

B. time series analysis
C. numerical analysis
D. experimental analysis

Probability Rules Quiz

MCQ Consider an event B, the non occurrence of event B is represented by

A. union of A
B. complement of A
C. intersection of A
D. A is equal to zero

Hyper Geometric Distribution Quiz

MCQ If the sample size is 6 and the population is 50 from which it is drawn without
replacement and the elements for success are 22 then the variance of hyper geometric
probability distribution is

A. 1.388
B. 2.388
C. 3.388
D. 4.388

Random Variable Classes Quiz

MCQ The types of probability distributions by taking their functions of considerations

must include
 A. posterior probability distribution
B. discrete probability distribution
C. continuous probability distribution
D. both b and c

Measuring Dispersion Quiz

MCQ The technique which implies in statistical process to measure the variation in data
is called

A. measures of dispersion
B. measures of statistics
C. measures of process
D. none of above

Answer D

Standard Normal Probability Distribution Quiz

MCQ Consider the probability distribution as standard normal, if the value of μ is 75, the
value of x is 120 with the unknown standard deviation of distribution then the value of z-
statistic

A. will be one
B. will be zero
C. will be negative
D. will be positive

Data Tables in Statistics Quiz

MCQ The data table which is presented in tabular form on the basis of single
characteristics is classified as

A. simple table
B. complex table
C. percentage table
D. interval table

Probability and Counting Rules Quiz

MCQ The method of counting the outcomes in which the number of outcomes are
determined while considering the ordering is classified as

A. intersection combinations
B. union combinations
C. listed combination
D. permutations

Data Tables and Types Quiz

MCQ The area diagrams and surface diagrams are other names of

A. single dimension diagrams

B. two dimensional diagrams
C. three dimensional diagrams
D. four dimension diagrams

Relationship: Measures of Deviation Quiz

MCQ If the standard deviation is 5 then quartile deviation is

A. 5
B. 0.334
C. 0.234
D. 0.134

Sampling Distributions Quiz

MCQ If the mean of population is 25 then the mean of sampling distribution is

A. 25
B. 5
C. 30
D. 35

Data Classification Quiz

MCQ The frequency distribution which is result of cross classification is called

A. bivariate frequency distribution

B. univariate frequency distribution
 C. multi-variables distribution
D. close ended distribution

Histograms in Statistics Quiz

MCQ The types of histograms includes

A. deviation bar charts

B. paired bar charts
C. grouped charts
D. all of above

Probability and Counting Rules Quiz

MCQ The method of counting the outcomes in which the number of outcomes are
determined without taking care of the arrangement order is classified as

A. listed combinations
B. union combinations
C. intersection combination
D. unlisted combinations

Coefficient of Skewness Quiz

MCQ The coefficient of skewness method in which the basis of measuring is deciles

and percentiles is classified as

A. Gary's coefficient of skewness

B. Sharma's coefficient of skewness
C. Kelly's coefficient of skewness
D. Jack Karl's coefficient of skewness

MCQ If the value of p is 0.60 and value of n is 3 whereas the random variable x is equal
to 4 then the value of z-score of distribution is

A. 1.59
B. 2.59
C. 2.68
D. 0.59
Interquartile Range of Deviation Quiz

MCQ The value of third quartile is 72, second quartile is 52 and the first quartile is 45
then quartile deviation is

A. 13.5
B. 14
C. 16.5
D. 18.5

Variance and Standard Deviation Quiz

MCQ The undesirable consequences which causes the estimated population variance

to appear less as compared to real results are classified as

A. undesired error
B. bias
C. non-calculate error
D. non-zero error

Data Types in Stats Quiz

MCQ The type of variable which can take any numerical figure for calculation is
classified as

A. continuous variable
B. measuring variable
C. flowchart variable
D. discrete variable

Types of Bias Quiz

MCQ If the population parameter μ and the unbiased estimate of population is x‾ then
the sampling error is as

A. |p‾ - μ|
B. |x‾ - μ|
C. |x‾ + μ|
D. |x‾ * μ|
MCQ The outcome of experiment which can be broken into more convenient list of
outcomes is called

A. alpha event
B. gamma event
C. simple event
D. random event

Data Classification Quiz

MCQ The classification of data on the geographical basis is also called

A. reflected classification
B. populated classification
C. sampling classification
D. spatial classification

Sampling Distribution in Statistics Quiz

MCQ The theorem which states that as the sample size increases the sampling
distribution must approach the normal distribution is classified as

A. limited approximation theorem

B. secondary limit theorem
C. primary limit theorem
D. central limit theorem

Statistics Formulas Quiz

MCQ For the grouped data in calculation of moments from mean, the formula to
calculate this measure is

A. 2⁄n Σn(x+mean)r
B. 2⁄n Σn(x+mean)x
C. 1⁄n Σf(x-mean)r
D. 2⁄n Σf(x-mean)r

Averages of Position Quiz

MCQ The measure of central tendency which is calculated by considering the most

frequent occurring value as central value is classified as
 A. central mode
B. mode
C. frequent value
D. percent value

MCQ The tools such decision making by nominal groups, brain storming and term
buildings are all considered as

A. serial tools
B. behavioral tools
C. statistical tools
D. parallel tools

Uniform Distribution Quiz

MCQ For a rectangular or uniform distribution, the value of interval a is 7 and the value
of interval b is 8 then the value of mean for the distribution is

A. 1.33
B. 3.33
C. 2.33
D. 4.33

Principles of Sampling Quiz

MCQ The conditions such as large sample size to represent population and samples
must be drawn randomly are included in

A. principle of statistical regularity

B. principle of statistical irregularity
C. principle of sampling error
D. principle of inertia

Types of Statistical Methods Quiz

MCQ One of the category of the statistical method is

A. managerial statistics
B. decision science
C. inferential statistics
 D. industry statistics

Exponential Distribution Quiz

MCQ The condition for negative exponential distribution considering mean (μ) is that

A. μ must be less than zero

B. μ must be greater than one
C. μ must be greater than zero
D. μ must be smaller than twp

AnsweCentral Tendency Measures Quiz

MCQ The number of observations are 11 and the value of arithmetic mean is 19 then
sum of all values is

A. 209
B. 30
C. 8
D. 173

Data Classification Quiz

MCQ The set of raw data arranged in ascending or descending order is called

A. ordered array
B. nominal array
C. ordinal array
D. interval array

Binomial Probability Distribution Quiz

MCQ If the mean of binomial probability distribution is 25 then the mean of Poisson
probability distribution is

A. 70
B. 50
C. 25
D. 50

Standard Normal Probability Distribution Quiz

MCQ If the value of x is less than μ of standard normal probability distribution then the

A. z-statistic is negative
B. z-statistic is positive
C. f(x) will be even number
D. f(x) will be prime number

Statistical Techniques Quiz

MCQ The branch of statistics in which the data is collected according to ordinal scale or
nominal scale is classified as

A. distribution statistics
B. sampling statistics
C. parametric statistics
D. non-parametric statistics

Discrete Probability Distributions Quiz

MCQ The 2600 applications for home mortgage are received by a bank and the
probability of approval is 0.78 then the standard deviation of binomial probability
distribution is

A. 2028
B. 546.16
C. 446.16
D. 646.16

Data Classification Quiz

MCQ The halfway point between the lower class limits and upper class limits is
classified as

A. nominal mid-point
B. class mid-point
C. interval mid-point
D. ordinal mid-point

Population Parameters and Sample Statistic Quiz

MCQ The measures in sampling that are results of sample analyses are called
 A. absolute statistics parameter
B. coverage estimators
C. population statistics
D. sample statistic

Statistical Techniques Quiz

MCQ The time frame to complete a transaction in bank is classified as

A. parameters
B. process
C. mixer
D. sampler

Relative Frequency Quiz

MCQ The important rules in computation of experimental outcomes includes

A. multiple experiments
B. permutations
C. combinations
D. all of above

MCQ The type of rating scale which represents response of respondents by marking at

appropriate point is classified as

A. graphic rating scale

B. responsive scale
C. pointed scale
D. marking scale

Data Classification Quiz

MCQ The classification on the basis of time order is called as

A. disclosed classification
B. chronological classification
C. external classification
D. internal classification
Multiplication Rules of Probability Quiz

MCQ For two events, the probability of occurrence of both events at same time or
occurrence in series is classified as

A. joint probability
B. dependent probability
C. series probability
D. conditional probability

Introduction to Statistics Quiz

MCQ The branches of statistics includes

A. applied statistics
B. mathematical statistics
C. industry statistics
D. both a and b

Standard Errors in Statistics Quiz

MCQ All the values in sample distribution that can freely varies in the selected random
sample from population are indicated as

A. degree of freedom
B. degree of error
C. degree of statistic
D. degree of possibility

Quiz 50 on Skewness, Kurtosis and Moments

Statistical Measures Quiz

MCQ The unifying method to summarize the statistical measure of descriptive nature is

called

A. unifying momentum
B. momentum summary
C. moments
D. momentum
Standard Errors in Statistics Quiz

MCQ IF the population standard deviation is not known then the formula used to
calculate standard error is as

A. n - 1 ⁄ sample size square root

B. s ⁄ sample size square root
C. n + 1 ⁄ square root of s
D. n * 2 ⁄ sample size square root

Statistics Questions Answers Quiz

MCQ The type of continuous distribution in which the probability is constant is classified

as

A. rectangular distribution
B. square distribution
C. open frequency distribution
D. class frequency distribution

Probability and Counting Rules Quiz

MCQ Considering the combination rule of counting the outcome, the value of 5! Is

A. 5
B. 120
C. 24
D. 20

Principles of Measurement Quiz

MCQ The scale which is used to determine the ratios equality is considered as

A. satisfactory scale
B. ratio scale
C. goodness scale
D. exponential scale

Quiz 51 on Measures of Dispersion

Chebyshev Theorem Quiz

MCQ The measuring theorem which helps in determining proportion of observations for
specific interval of mean and standard deviation is classified as

A. Pearson Theorem
B. Chebyshev's Theorem
C. sampling theorem
D. population theorem

Relative Measure of Skewness Quiz

MCQ If for a distribution the difference of first quartile and median is less than difference
of median and third quartile then the distribution is classified as

A. negatively skewed
B. not skewed at all
C. absolute open ended
D. positively skewed

Average Deviation Measures Quiz

MCQ Considering the individual values of data set, the actual mean must always be

A. 1
B. −1
C. 0
D. 2

Uniform Distribution Quiz

MCQ If the value of interval a is 4 and the value of interval b is 5 then the variance of
uniform distribution is

A. 6.75
B. 4.75
C. 5.75
D. 0.75

Chebyshev Theorem Quiz

MCQ Considering the set of observations, the percentage of values that lies within
population mean plus two standard deviations is

A. 60%
B. 55%
C. 75%
D. 85%

Quiz 52 on Introduction to Probability

Probability Experiments Quiz

MCQ In probability theory, the events are denoted by

A. Greek letters
B. capital letters
C. small letters
D. Latin letters

Data Types in Stats Quiz

MCQ The examples of variables in statistical phenomenon consists

A. job satisfaction
B. consumer behaviors
C. leadership ability
D. all of above

Rectangular Distribution Quiz

MCQ The formula such as mn ⁄ (m + n)2 (m + n + 1) is used to calculate

A. variance in exponential distribution

B. variance in alpha distribution
C. variance in gamma distribution
D. variance in beta distribution

Interquartile Deviation Quiz

MCQ The measure of variation which is useful for highly skewed distribution is

 A. inter quartile deviation
B. quartile deviation
C. inter quartile range
D. quartile range

Data Tables and Types Quiz

MCQ The graphs which represents data on maps are considered as

A. cartograms
B. picto-graph
C. pictograms
D. symmetry graph

Frequency Distribution Types Quiz

MCQ The class frequency is divided by number of observations in the frequency distribution to

convert it into

A. relative margin distribution

B. relative variable distribution
C. relative frequency distribution
D. relative width distribution

Sampling Distributions Quiz

MCQ If the value of x-bar is 70 and the μ of sampling distribution is 15 with the standard
deFrequency Distribution Types Quiz

MCQ The class frequency is divided by number of observations in the frequency distribution to

convert it into

A. relative margin distribution

B. relative variable distribution
C. relative frequency distribution
D. relative width distribution

Sampling Distributions Quiz

MCQ If the value of x-bar is 70 and the μ of sampling distribution is 15 with the standard
deviation is 20 then the standard normal variable is
 A. 2.75
B. 3.75
C. 4.75
D. 5.75

Sampling Distributions Quiz

MCQ The uncertainty of elements can be reduced with the estimation of

A. under coverage error

B. coverage error
C. sampling error
D. random sample error

Histograms in Statistics Quiz

MCQ The histograms and pie charts are classified as one dimensional diagrams because only

A. length is considered
B. width is considered
C. length plus width is considered
D. breadth is considered

Introduction to Statistics Quiz

MCQ The procedures of descriptive statistics and control charts which are used to improve the
process are classified as

A. statistical tools
B. parallel tools
C. serial tools
D. behavioral tools

Quiz on Sampling Distributions

Sampling Distributions Quiz

MCQ The procedure of selecting the desired portion from population which describes the
characteristics of whole population is
 A. sampling
B. extracting
C. deviation of sample
D. variability of sample

Data Tables and Types Quiz

MCQ In stem and leaf display diagrams used in exploratory analysis, the leaves are considered
as

A. leading digits
B. dispersed digits
C. central digits
D. trailing digits

Distance Measures Quiz

MCQ The sum of highest and lowest value is 80 and the coefficient of range is 0.625 then the
difference between highest and lowest value is

A. 70
B. 100
C. 150
D. 50

Symmetrical Distribution Quiz

MCQ In a symmetrical distribution, the third quartile and first quartile of data in distribution must

A. be at equal distance
B. not be at equal distance
C. positive value concentration
D. negative value concentration

Data Tables and Types Quiz

MCQ The original tables used to represent data are considered as

A. dispersion tables
B. classification tables
 C. cumulative tables
D. distributed tables

Answer B

Answer A

1 …………………………. is an important factor of management informationsystem.

A) System
B) Data
C) Process
D) All

Q.2  Which are the following is / are the level(s) of documentation?

A) Documentation for management
B) Documentation for user
C) Documentation for data processing department
D) All of the above

Q.3 ………………………….. level supply information to strategic tier for the use of top
management.
A) Operational
B) Environmental
C) Competitive
D) Tactical

Q.4  In a DFD external entities are represented by a

A) Rectangle
B) Ellipse
C) Diamond shaped box
D) Circle
Q.5  …………… can be defined as data that has been processed into a form that is
meaningful to the recipient and is of real or perceive value in current or prospective
decisions.
A) System
B) Information
C) Technology
D) Service

Q.6 Use the new system as the same time as the old system to compare the results.
This is known as ……
A) Procedure Writing
B) Simultaneous processing
C) Parallel Operation
D) File Conversion

Q.7 Decision making model was proposed by ………………….

A) Harry Goode
B) Herbert A Simon
C) Recon Michal
D) None of this

Q.8 A data flow can

A) Only emanate from an external entity
B) Only terminate in an external entity
C) May emanate and terminate in an external entity
D) May either emanate or terminate in an external entity but not both

Q. 9 …………… can be defined as most recent and perhaps the most comprehensive
technique for solving computer problems.
A) System Analysis
B) System Data
C) System Procedure
D) System Record

Q.10 SDLC stands for

A) System Development Life Cycle
B) Structure Design Life Cycle
C) System Design Life Cycle
D) Structure development Life Cycle
1. What is the purpose of a summary table?

Answer To see differences between or among categories.

:

2. A graphical representation of a frequency distribution is called a histogram

3. You have a summary table and a simple bar chart (like the ones at the
beginning of the chapter) indicating where customers prefer to do their
banking. How could you enhance the bar chart to provide both visual and
actual information?

Answer Add values to the bar chart like what is commonly done on a pie chart.
:
While the addition of vertical lines will enhance a bar chart, it may not show the actual
values if the frequencies are not integers.
4. It might be said that the stem-and-leaf display is really a quick and easy way of
creating a rudimentary chart or diagram for numerical data. If so, which chart is used to
describe categorical data does it most closely resemble?
Answer The stem-and-leaf display most closely resembles a rudimentary bar chart.
:

The stem-and-leaf display does not resemble a pie chart.

5. The width of a class interval in a frequency distribution (or bar chart) will be
approximately equal to the range of the data divided by the number of class intervals

6.
Q Which of the above histograms represents the graph of city restaurant meal
prices with an interval of $8? 

Answer Both histograms

:

Q When constructing a frequency distribution, which of the following rules must be

followed?

Answer Adjacent classes cannot overlap.

:
While it may be convenient when constructing a bar chart, midpoints are not
required to be integers.

Ques :

The rule of thumb for creating a frequency distribution is to divide the data
into 5-15 classes. While larger numbers of classes allow for larger data
sets, how do you know exactly how many classes to use?

Answer Select the number of classes that provides definition to the shape of the data.
:
Ques. The following numbers represent exam scores in an accounting class:

78, 93, 85, 81, 73, 96, 72, 86, 90, 85

If a stem-and-leaf diagram is developed from this data, how many stems will be used?

Answer 3. There are scores in the 70s, 80s, and 90s.

:
Ques.In the above figure of wine imports into the United States, what three guidelines
for developing good graphs have not been followed

Answer: Distorted data, unnecessary adornments, vertical axis not properly

labeled.

The X axis is labeled by the years, and there is a title.

Ques :Considering the various types of tables and charts introduced in this chapter,
which table, chart, diagram or plot would you use to depict categorical data for two
variables in a visual format?

Answer:
side-by-side bar chart

The cumulative frequency for a particular class is equal to 35. The cumulative frequency
for the next class will be _________________ .

Answer:
35 plus the next class frequency.

100-35 = 65 does not determine the cumulative frequency for the next class.

Ques ;Which of the following would be most helpful in the construction of a pie chart?

Answer:
relative frequencies
The cumulative percentages would be sufficient, but the relative frequencies would
need to be extracted before the pie chart could be constructed.

Ques. :

The table above shows the frequency and relative frequencies for 7 groups of
restaurant meal prices. How was the value of 0.36 obtained for the relative frequency of
meals costing $32 but less than $40?

Answer: The number of data points is 50, so divide 18 by 50.

The correct way to calculate the relative frequency is to divide the value (18) by the
number of data points (50).

Ques.The highest bar in a histogram represents?

Answer The class with the highest frequency.

: