MULTIPLE CHOICE QUESTIONS

Business Statistics

Chapter 1
1. The process of summarizing the data is called
a. inferential statistics
b. nominal data
c. descriptive statistics
d. deferential statistics
e. nonparametric statistics
Ans: c

2. A cancer research group was interested in determining the percentage of women 40 years
or older that have regularly scheduled mammograms. To accomplish this, they surveyed
500 women in this age group and based on 155 women that responded affirmatively,
estimated the percentage of all women in this age group that have regularly scheduled
mammograms. This process is an example of _________
a. nonparametric statistics
b. nominal data
c. descriptive statistics
d. inferential statistics
e. census
Ans: d

3. How much inventory do Christmas tree sales lots keep? A researcher goes from location
to location around the city counting the number of trees in each lot. These numbers most
likely represent what level of data?
a. Interval level
b. Ordinal level
c. Nominal level
d. Ratio level
e. Relative level
Ans: d

4. During the Valentine's season, different offices in a company are encouraged to decorate
their doors. A committee then goes around and ranks the doors according to how well
the doors are decorated. The best door gets a ranking of “1”; the second best gets a
ranking of “2”, etc. The numbers of these rankings represent which level of data?
a. Interval level
b. Ordinal level
c. Nominal level
d. Ratio level
e. Relative level
Ans: b

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5. A marketing survey is conducted to ascertain the potentiality of several new products. A
series of focus groups is used to conduct this survey. At the end of one of the sessions,
the group members are asked to rank the remaining eight products in order of desirability.
A one indicates the most favored product and an eight is awarded to the least desirable.
These numbers are examples of which level of data?
a. Interval level
b. Ordinal level
c. Nominal level
d. Ratio level
e. Relative level
Ans: b

6. 200 manufactured items are randomly selected from a production run and 9 of them are
defective. The proportion of defective items in this sample is a ________

a. parameter
b. sample
c. population
d. statistic
e. frame
Ans: d

7. Which types of data are normally used in parametric statistics?

a. Interval or ratio level data
b. Ordinal or nominal level data
c. Nominal or ratio level data
d. Ratio or ordinal level data
e. Relative or ratio level data
Ans: a

8. If it were not for the existence of an "absolute zero," ratio data would be considered the
same as _______.
a. interval level data
b. ordinal level data
c. nominal level data
d. ratio level data
e. relative level data
Ans: a

9. Sales of a restaurant (in dollars) are an example of what level of data measurement?
a. Interval level data
b. Ordinal level data
c. Nominal level data
d. Ratio level data
e. Relative level data
Ans: d

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 10. Grades on a test range from 0 to 100. This level of data is _______.
a. interval level data
b. ordinal level data
c. nominal level data
d. ratio level data
e. relative level data
Ans: d

11. The social security number of employees would be an example of what level of data
measurement?
a. Interval level data
b. Ordinal level data
c. Nominal level data
d. Ratio level data
e. Relative level data
Ans: c

12. Members of the accounting department's clerical staff were asked to rate their
supervisor's leadership style as either (1) authoritarian or (2) participatory. This is an
example of _______ .
a. interval level data
b. ordinal level data
c. nominal level data
d. ratio level data
e. relative level data
Ans: c

13. When a person collects information from the entire population, this is called a _______.
a. parameter
b. sample
c. population
d. census
e. statistic
Ans: d

Chapter 2
1. The number of phone calls arriving at a switchboard each hour has been recorded, and the
following frequency distribution has been developed.
Class Interval Frequency
20-under 40 30
40-under 60 45
60-under 80 80
80-under 100 45
What is the midpoint of the last class?

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a) 80
b) 100
c) 95
d) 90
e) 85
Ans: d

2. Consider the following frequency distribution:

Class Interval Frequency
10-under 20 15
20-under 30 25
30-under 40 10
What is the cumulative frequency of the second class interval?
a) 25
b) 40
c) 15
d) 50
Ans: b

3. Consider the following stem and leaf plot:

Stem Leaf
1 0, 2, 5, 7
2 2, 3, 4, 4
3 0, 4, 6, 6, 9
4 5, 8, 8, 9
5 2, 7, 8
Suppose that a frequency distribution was developed from this, and there were 5 classes (10-
under 20, 20-under 30, etc.). What would the frequency be for class 30-under 40?
a) 3
b) 4
c) 6
d) 7
e) 5
Ans: e

4. An instructor has decided to graphically represent the grades on a test. The instructor uses a
plus/minus grading system (i.e. she gives grades of A-, B+, etc.). Which of the following would
provide the most information for the students?
a) A histogram
b) bar chart
c) A cumulative frequency distribution
d) A frequency distribution
e) A scatter plot
Ans: b

5. The following represent the ages of students in a class:

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 19, 23, 21, 19, 19, 20, 22, 31, 21, 20
If a stem and leaf plot were to be developed from this, how many stems would there be?
a) 2
b) 3
c) 4
d) 5
e) 10
Ans: b

6. A person has decided to construct a frequency distribution for a set of data containing 60
numbers. The lowest number is 23 and the highest number is 68. If 5 classes are used, the class
width should be approximately _______.
a) 4
b) 12
c) 8
d) 5
e) 9
Ans: e

7. The cumulative frequency for a class is 27. The cumulative frequency for the next (non-
empty) class will be _______.
a) less than 27
b) equal to 27
c) next class frequency minus 27
d) 27 minus the next class frequency
e) 27 plus the next class frequency
Ans: e

8. Each day, the office staff at Oasis Quick Shop prepares a frequency distribution and an ogive
of sales transactions by dollar value of the transactions. Saturday's cumulative frequency ogive
follows.

The percentage of sales transactions on Saturday that were between $100 and $150 was
_____________.
a) 20%
b) 40%

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c) 60%
d) 80%
e) 10%
Ans: c

9. The following graphic of cigarettes smoked (sold) per capita (CIG) and deaths per 100K
population from lung cancer (LUNG) indicates _________
Scatterplot of LUNG vs CIG
28

26

24

22

20
LUNG

18

16

14

12

10
10 15 20 25 30 35 40 45
C IG

a) a weak relation between the two variables

b) a pretty strong relation between the two variables
c) when the number of cigarettes smoked (sold) per capita (CIG) increases the deaths per 100K
population from lung cancer (LUNG)decreases
d) a negative relation between the two variables
e) no relation between the two variables
Ans: b

Chapter 3

1. According to Chebyshev's Theorem how many values in a data set will be within 3 standard
deviations of the mean?
a) At least 75%
b) At least 68%
c) At least 95%
d) At least 89%
e) At least 99%
Ans: d

2. A statistics student made the following grades on 5 tests: 84, 78, 88, 72, and 72. What is the
median grade?
a) 88

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b) 72
c) 78
d) 80
e) 82
Ans: c

3. A commuter travels many miles to work each morning. She has timed this trip 5 times during
the last month. The time (in minutes) required to make this trip was 44, 39, 41, 35, and 41.
What is the standard deviation for this sample data?
a) 3.32
b) 2.97
c) 1.73
d) 11
e) -1.4
Ans: a

4. A commuter travels many miles to work each morning. She has timed this trip 5 times during
the last month. The time (in minutes) required to make this trip was 44, 39, 41, 35, and 41.
What is the mean absolute deviation for this sample data?
a) 0
b) 12
c) 3
d) 2.4
e) 1.2
Ans: d

5.The mean life of a particular brand of light bulb is 1000 hours and the standard deviation is 50
hours. We can conclude that at least 75% of this brand of bulbs will last between _______.
a) 900 and 1100 hours
b) 950 and 1050 hours
c) 850 and 1150 hours
d) 800 and 1200 hours
e) 1050 and 1250 hours
Ans: a

6.The mean life of a particular brand of light bulb is 1000 hours and the standard deviation is 50
hours. Tests show that the life of the bulb is approximately normally distributed. It can be
concluded that approximately 68% of the bulbs will last between _______.
a) 900 and 1100 hours
b) 950 and 1050 hours
c) 850 and 1150 hours
d) 800 and 1200 hours
e) 1050 and 1250 hours
Ans: b

7.The following box and whisker plot was constructed for the age of accounts receivable.

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The box and whisker plot reveals that the accounts receivable ages are _______.
a) skewed to the left
b) skewed to the right
c) not skewed
d) normally distributed
e) symmetrical
Ans: b

8.The following frequency distribution was constructed for the age of accounts receivable.

The frequency distribution reveals that the accounts receivable ages are _______.
a) skewed to the left
b) skewed to the right
c) not skewed
d) normally distributed
e) symmetrical
Ans: a

9.David Desreumaux, VP of Human Resources of American First Banks (AFB), is reviewing the
employee training programs of AFB banks. His staff compiled the following table of regional
statistics on teller training hours.
Southeast Region Southwest Region
Mean 20 28
Median 20 20
Mode 20 21
Standard Deviation 5 7
What can David conclude from these statistics?
a) The Southeast distribution is skewed to the left.
b) The Southeast distribution is skewed to the right.
c) The Southwest distribution is skewed to the left.
d) The Southwest distribution is skewed to the right.
e) Both distributions are symmetrical.
Ans: d

10. David Desreumaux, VP of Human Resources of American First Banks (AFB), is reviewing
the employee training programs of AFB banks. His staff reports several statistics for teller
training hours. The mean is 20 hours, the standard deviation is 5 hours, the median is 15 hours,

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and mode is 10 hours. The Pearsonian coefficient of skewness for teller training hours is
__________.
a) 6
b) 1
c) 3
d) 4
e) 0
Ans: c

Chapter 4
1. Belinda Bose is reviewing a newly proposed advertising campaign. Based on her 15 years
experience, she believes the campaign has a 75% chance of significantly increasing brand name
recognition of the product. This is an example of assigning probabilities using the
________________ method.
a) subjective probability
b) relative frequency
c) classical probability
d) a priori probability
e) a posterior probability
Ans: a

2. Which of the following is not a legitimate probability value?

a) 0.67
b) 15/16
c) 0.23
d) 4/3
e) 0.98
Ans: d

3. The list of all elementary events for an experiment is called _______.

a) the sample space
b) the exhaustive list
c) the population space
d) the event union
e) a frame
Ans: a

4. If X and Y are mutually exclusive events, then if X occurs _______.

a) Y must also occur
b) Y cannot occur
c) X and Y are independent
d) X and Y are complements
e) A and Y are collectively exhaustive
Ans: b

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5.If X and Y are mutually exclusive, then _______.
a) the probability of the union is zero
b) P(X) = 1 - P(Y)
c) the probability of the intersection is zero
d) the probability of the union is one
e) P(Y) = P(X)
Ans: c

6.Let A be the event that a student is enrolled in an accounting course, and let S be the event that
a student is enrolled in a statistics course. It is known that 30% of all students are enrolled in an
accounting course and 40% of all students are enrolled in statistics. Included in these numbers
are 15% who are enrolled in both statistics and accounting. A student is randomly selected, what
is the probability that the student is enrolled in either accounting or statistics or both?
a) 0.15
b) 0.85
c) 0.70
d) 0.55
e) 0.90
Ans: d

7. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Plano
Power Plant. Ten percent of all plant employees work in the finishing department; 20% of all
plant employees are absent excessively; and 7% of all plant employees work in the finishing
department and are absent excessively. A plant employee is selected randomly; F is the event
"works in the finishing department;" and A is the event "is absent excessively." P(A|F) =
_____________.
a) 0.37
b) 0.70
c) 0.13
d) 0.35
e) 0.80
Ans: b

8. Given P (A) = 0.40, P (B) = 0.50, P (A  B) = 0.15. Find P (A|B).

a) 0.20
b) 0.80
c) 0.30
d) 0.375
e) 0.15
Ans: c

9.An automobile dealer wishes to investigate the relation between the gender of the buyer and
type of vehicle purchased. Based on the joint probability table below that was developed from
the dealer’s records for the previous year, P (Female  SUV) = _______.

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 Type of Buyer Gender
Vehicle Female Male Total
SUV
Not SUV .30 .40
Total .60 1.00

a) 0.30
b) 0.40
c) 0.12
d) 0.10
e) 0.60
Ans: d

10.Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified the portfolio
stocks by 'industry sector' and 'investment objective.'

Investment Industry Sector

Objective Electronics Airlines Healthcare Total
Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200

11. If a stock is selected randomly from Meagan's portfolio, P (Healthcare  Electronics) =

_______.
a) 0.25
b) 0.85
c) 0.60
d) 0.75
e) 0.90
Ans: b

12. Assigning probability 1/3 of rolling a 4 or 5 on a single die is an example of assigning

probabilities using the ________________ method
a) subjective probability
b) relative frequency
c) classical probability
d) a priori probability
e) a posterior probability
Ans: c

13. The number of different committees of 2 students that can be chosen from a group of 5
students is
a) 20
b) 2
c) 5

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d) 10
e) 1
Ans: d

14. It is known that 20% of all students in some large university are overweight, 20% exercise
regularly and 2% are overweight and exercise regularly. What is the probability that a randomly
selected student is either overweight or exercises regularly or both?
a) 0.40
b) 0.38
c) 0.20
d) 0.42
e) 0.10
Ans: b

15. Suppose that 5% of all TVs made by some Company in 2010 are defective. If 2 of these TVs
are randomly selected what is the probability that both are defective?
a) 0.95
b) 0.0025
c) 0.9025
d) 0.0475
e) 0.1
Ans: b

16. It is known that 20% of all students in some large university are overweight, 20% exercise
regularly and 2% are overweight and exercise regularly. What is the probability that a randomly
selected student is overweight given that this student exercises regularly?
a) 0.40
b) 0.38
c) 0.20
d) 0.42
e) 0.10
Ans: e

Chapter 5

1.The volume of liquid in an unopened 1-gallon can of paint is an example of _________.

a) the binomial distribution
b) both discrete and continuous variable
c) a continuous random variable
d) a discrete random variable
e) a constant
Ans: c

2. The number of defective parts in a lot of 25 parts is an example of _______.

a) a discrete random variable
b) a continuous random variable

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c) the Poisson distribution
d) the normal distribution
e) a constant
Ans: a

3.You are offered an investment opportunity. Its outcomes and probabilities are presented in the
following table.
x P(x)
-$1,000 .40
$0 .20
+$1,000 .40
The mean of this distribution is _____________.
a) -$400
b) $0
c) $200
d) $400
e) $500
Ans: b

4. If x has a binomial distribution with p = .5, then the distribution of x is ________.

a) skewed to the right
b) skewed to the left
c) symmetric
d) a Poisson distribution
e) a hypergeometric distribution
Ans: c

5. Twenty five items are randomly selected from a batch of 1000 items. Each of these items has
the same probability of being defective. The probability that exactly 2 of the 25 are defective
could best be found by _______.
a) using the normal distribution
b) using the binomial distribution
c) using the Poisson distribution
d) using the exponential distribution
e) using the uniform distribution
Ans: b

6. A student randomly guesses the answers to a five question true/false test. If there is a 50%
chance of guessing correctly on each question, what is the probability that the student misses
exactly 1 question?
a) 0.200
b) 0.031
c) 0.156
d) 0.073
e) 0.001
Ans: c

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7.Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order
business, but after scanning the list she doubts the authenticity of the list. She randomly selects
five names from the list for validation. If 40% of the names on the list are non-authentic, and x is
the number on non-authentic names in her sample, the expected (average) value of x is
______________.
a) 2.50
b) 2.00
c) 1.50
d) 1.25
e) 1.35
Ans: b

8. If x is a binomial random variable with n=8 and p=0.6, the mean value of x is _____.
a) 6
b) 4.8
c) 3.2
d) 8
e) 48
Ans: b

9. If x is a binomial random variable with n=8 and p=0.6, the standard deviation of x is
_________.
a) 4.8
b) 3.2
c) 1.92
d) 1.39
e) 1.00
Ans: d

10.The number of cars arriving at a toll booth in five-minute intervals is Poisson distributed with
a mean of 3 cars arriving in five-minute time intervals. The probability of 5 cars arriving over a
five-minute interval is _______.
a) 0.0940
b) 0.0417
c) 0.1500
d) 0.1008
e) 0.2890
Ans: d

11. Assume that a random variable has a Poisson distribution with a mean of 5 occurrences per
ten minutes. The number of occurrences per hour follows a Poisson distribution with λ equal to
_________
a) 5
b) 60
c) 30

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d) 10
e) 20
Ans: c

12. The Poisson distribution is being used to approximate a binomial distribution. If n=60 and
p=0.02, what value of lambda would be used?
a) 0.02
b) 12
c) 0.12
d) 1.2
e) 120
Ans: d

13. The number of phone calls arriving at a switchboard in a 10 minute time period would best
be modeled with the _________.
a) binomial distribution
b) hypergeometric distribution
c) Poisson distribution
d) hyperbinomial distribution
e) exponential distribution
Ans: c

Chapter 6

1. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the height
of this distribution, f(x), is __________________.
a) 1/8
b) 1/4
c) 1/12
d) 1/20
e) 1/24
Ans: b

2. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the mean of
this distribution is __________________.
a) 10
b) 20
c) 5
d) 0
e) unknown
Ans: a

3. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the
standard deviation of this distribution is __________________.

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a) 4.00
b) 1.33
c) 1.15
d) 2.00
e) 1.00
Ans: c

4. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the
probability, P(9  x  11), is __________________.
a) 0.250
b) 0.500
c) 0.333
d) 0.750
e) 1.000
Ans: b

5. If a continuous random variable x is uniformly distributed over the interval 8 to 12,

inclusively, then P(x = exactly 10) is __________________.
a) 0.750
b) 0.000
c) 0.333
d) 0.500
e) 0.900
Ans: b

6. The total area underneath any normal curve is equal to _______.

a) the mean
b) one
c) the variance
d) the coefficient of variation
e) the standard deviation
Ans: b

7. The area to the left of the mean in any normal distribution is equal to _______.
a) the mean
b) 1
c) the variance
d) 0.5
e) -0.5
Ans: d

8. A standard normal distribution has the following characteristics:

a) the mean and the variance are both equal to 1
b) the mean and the variance are both equal to 0
c) the mean is equal to the variance
d) the mean is equal to 0 and the variance is equal to 1

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e) the mean is equal to the standard deviation
Ans: d

9.If x is a normal random variable with mean 80 and standard deviation 5, the z-score for x = 88
is ________.
a) 1.8
b) -1.8
c) 1.6
d) -1.6
e) 8.0
Ans: c

10. Suppose x is a normal random variable with mean 60 and standard deviation 2. A z score
was calculated for a number, and the z score is 3.4. What is x?
a) 63.4
b) 56.6
c) 68.6
d) 53.2
e) 66.8
Ans: e

11. A z score is the number of __________ that a value is from the mean.
a) variances
b) standard deviations
c) units
d) miles
e) minutes
Ans: b

Chapter 9
1.Consider the following null and alternative hypotheses.
Ho: µ  67
Ha: µ > 67
These hypotheses _______________.

a) indicate a one-tailed test with a rejection area in the right tail

b) indicate a one-tailed test with a rejection area in the left tail
c) indicate a two-tailed test
d) are established incorrectly
e) are not mutually exclusive
Ans: a

2. Consider the following null and alternative hypotheses.

Ho: p  0.16

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 Ha: p < 0.16
These hypotheses _______________.

a) indicate a one-tailed test with a rejection area in the right tail

b) indicate a one-tailed test with a rejection area in the left tail
c) indicate a two-tailed test
d) are established incorrectly
e) are not mutually exclusive
Ans: b

3. Suppose the alternative hypothesis in a hypothesis test is: "the population mean is less than
60". If the sample size is 50, is known, and alpha =.05, the critical value of z is _______.

a) 1.645
b) -1.645
c) 1.96
d) -1.96
e) 2.05
Ans: b

4. Suppose you are testing the null hypothesis that a population mean is less than or equal to 80,
against the alternative hypothesis that the population mean is greater than 80. The sample size is
49 and alpha =.05. If the sample mean is 84 and the population standard deviation is 14, the
observed z value is _______.

a) 2
b) -2
c) 14
d) -14
e) 49
Ans: a

5. A researcher is testing a hypothesis of a single mean. The critical z value for

 = .05 and an one-tailed test is 1.645. The observed z value from sample data is 1.13. The
decision made by the researcher based on this information is to ______ the null hypothesis.

a) reject
b) not reject
c) redefine
d) change the alternate hypothesis into
e) restate the null hypothesis
Ans: b

6.A researcher is testing a hypothesis of a single mean. The critical z value for
 = .05 and a two-tailed test is +1.96. The observed z value from sample data is -1.85. The
decision made by the researcher based on this information is to _____ the null hypothesis.

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a) reject
b) not reject
c) redefine
d) change the alternate hypothesis into
e) restate the null hypothesis
Ans: b
7. Jennifer Cantu, VP of Customer Services at Tri-State Auto Insurance, Inc., monitors the
claims processing time of the claims division. Her standard includes "a mean processing time of
5 days or less." Each week, her staff checks for compliance by analyzing a random sample of 60
claims. Jennifer's null hypothesis is ________.

a)  > 5
b)  > 5
c) n = 60
d)  < 5
e)  = 5
Ans: e

8. In performing a hypothesis test where the null hypothesis is that the population mean is 23
against the alternative hypothesis that the population mean is not equal to 23, a random sample
of 17 items is selected. The sample mean is 24.6 and the sample standard deviation is 3.3. It can
be assumed that the population is normally distributed. The degrees of freedom associated with
this are _______.

a) 17
b) 16
c) 15
d) 2
e) 1
Ans: b

9. In performing a hypothesis test where the null hypothesis is that the population mean is 4.8
against the alternative hypothesis that the population mean is not equal to 4.8, a random sample
of 25 items is selected. The sample mean is 4.1 and the sample standard deviation is 1.4. It can
be assumed that the population is normally distributed. The observed "t" value for this problem
is _______.

a) -12.5
b) 12.5
c) -2.5
d) -0.7
e) 0.7
Ans: c

10.The diameter of 3.5 inch diskettes is normally distributed. Periodically, quality control
inspectors at Dallas Diskettes randomly select a sample of 16 diskettes. If the mean diameter of

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the diskettes is too large or too small the diskette punch is shut down for adjustment; otherwise,
the punching process continues. The null hypothesis is ______.

a) n  16
b) n = 16
c)  = 3.5
d)   3.5
e) µ ≥ 3.5
Ans: c

11. In performing hypothesis tests about the population mean, if the population standard
deviation is not known, a t test can be used to test the mean if _________________.

a) n is small
b) the sample is random
c) the population mean is known
d) the population is normally distributed
e) the population is chi-square distributed
Ans: d

12.A political scientist wants to prove that a candidate is currently carrying more than 60% of the
vote in the state. She has her assistants randomly sample 200 eligible voters in the state by
telephone and only 90 declare that they support her candidate. The observed z value for this
problem is _______.

a) -4.33
b) 4.33
c) 0.45
d) -.31
e) 2.33
Ans: a

13.A company believes that it controls more than 30% of the total market share for one of its
products. To prove this belief, a random sample of 144 purchases of this product is contacted. It
is found that 50 of the 144 purchased this company's brand of the product. If a researcher wants
to conduct a statistical test for this problem, the alternative hypothesis would be _______.

a) the population proportion is less than 0.30

b) the population proportion is greater than 0.30
c) the population proportion is not equal to 0.30
d) the population mean is less than 40
e) the population mean is greater than 40
Ans: b

14.A company believes that it controls more than 30% of the total market share for one of its
products. To prove this belief, a random sample of 144 purchases of this product is contacted. It

20
is found that 50 of the 144 purchased this company's brand of the product. If a researcher wants
to conduct a statistical test for this problem, the test would be _______.

a) a one-tailed test
b) a two-tailed test
c) an alpha test
d) a finite population test
e) a finite sample test
Ans: a

CHAPTER 10

1. Restaurateur Denny Valentine is evaluating two sites, Raymondville and Rosenberg, for his
next restaurant. He wants to prove that Raymondville residents (population 1) dine out more
often than Rosenberg residents (population 2). Denny plans to test this hypothesis using a
random sample of 81 families from each suburb. His null hypothesis is __________.
a) 12 < 22
b) 1 - 2 > 0
c) p1 – p2 = 0
d) 1 - 2 = 0
e) s1 – s2 = 0
Ans: d

2. Lucy Baker is analyzing demographic characteristics of two television programs, COPS

(population 1) and 60 Minutes (population 2). Previous studies indicate no difference in the ages
of the two audiences. (The mean age of each audience is the same.) Lucy plans to test this
hypothesis using a random sample of 100 from each audience. Her alternate hypothesis is
____________.
a) 1 - 2 < 0
b) 1 - 2 > 0
c) 1 - 2 = 0
d) 1 - 2  0
e) 1 - 2 = 1
Ans: d

3.Lucy Baker is analyzing demographic characteristics of two television programs, COPS

(population 1) and 60 Minutes (population 2). Previous studies indicate no difference in the ages
of the two audiences. (The mean age of each audience is the same.) Her staff randomly selected
100 people from each audience, and reported the following: x 1 = 43 years and x 2 = 45 years.
Assume that 1 = 5 and 2 = 8. With a two-tail test and = .05, the critical z values are
_________________.
a) -1.64 and 1.64
b) -1.96 and 1.96
c) -2.33 and 2.33
d) -2.58 and 2.58

21
e) -2.97 and 2.97
Ans: b

4.A researcher wants to conduct a before/after study on 11 subjects to determine if a treatment

results in any difference in scores. The null hypothesis is that the average difference is zero
while the alternative hypothesis is that the average difference is not zero. Scores are obtained on
the subjects both before and after the treatment. After subtracting the after scores from the before
scores, the average difference is computed to be -2.40 with a sample standard deviation of 1.21.
Assume that the differences are normally distributed in the population. The degrees of freedom
for this test are _______.
a) 11
b) 10
c) 9
d) 20
e) 2
Ans: b

5. Maureen McIlvoy, owner and CEO of a mail order business for wind surfing equipment and
supplies, is reviewing the order filling operations at her warehouses. Her goal is 100% of orders
shipped within 24 hours. In previous years, neither warehouse has achieved the goal, but the
East Coast Warehouse has consistently out-performed the West Coast Warehouse. Her staff
randomly selected 200 orders from the West Coast Warehouse (population 1) and 400 orders
from the East Coast Warehouse (population 2), and reports that 190 of the West Coast Orders
were shipped within 24 hours, and the East Coast Warehouse shipped 372 orders within 24
hours. Maureen's alternative hypothesis is _______.
a) p1 – p2  0
b) 1 - 2 > 0
c) p1 – p2 > 0
d) 1 - 2  0
e) 1 - 2 ≥ 0
Ans: c

Chapter 11
1. Pate's Pharmacy, Inc. operates a regional chain of 120 pharmacies. Each pharmacy's floor
plan includes a greeting card department which is relatively isolated. Sandra Royo, Marketing
Manager, feels that the level of lighting in the greeting card department may affect sales in that
department. She chooses three levels of lighting (soft, medium, and bright) and randomly
assigns six pharmacies to each lighting level. Sandra's experimental design is a ________.
a) factorial design
b) random block design
c) normalized block design
d) completely randomized design
e) fractional design
Ans: d

22
2.Pate's Pharmacy, Inc. operates a regional chain of 120 pharmacies. Each pharmacy's floor plan
includes a greeting card department which is relatively isolated. Sandra Royo, Marketing
Manager, feels that the level of lighting in the greeting card department may affect sales in that
department. She chooses three levels of lighting (soft, medium, and bright) and randomly
assigns six pharmacies to each lighting level. In Sandra's experimental design "lighting" is
_______.
a) the dependent variable
b) a concomitant variable
c) a treatment variable
d) a blocking variable
e) a response variable
Ans: c

3.Pate's Pharmacy, Inc. operates a regional chain of 120 pharmacies. Each pharmacy's floor plan
includes a greeting card department which is relatively isolated. Sandra Royo, Marketing
Manager, feels that the level of lighting in the greeting card department may affect sales in that
department. She chooses three levels of lighting (soft, medium, and bright) and randomly
assigns six pharmacies to each lighting level. In Sandra's experimental design "sales in the
greeting card department" is _______.
a) the dependent variable
b) a concomitant variable
c) a treatment variable
d) a blocking variable
e) a constant
Ans: a

4. Pharmacy, Inc. operates a regional chain of 120 pharmacies. Each pharmacy's floor plan
includes a greeting card department which is relatively isolated. Sandra Royo, Marketing
Manager, feels that the level of lighting in the greeting card department may affect sales in that
department. She chooses three levels of lighting (soft, medium, and bright) and randomly
assigns six pharmacies to each lighting level. Analysis of Sandra's data yielded the following
ANOVA table.

Source of Variation SS df MS F
Treatment 49411.11 2 24705.56 10.4304
Error 35529.17 15 2368.611
Total 84940.28 17

Using α = 0.05, the appropriate decision is _____________.

a) reject the null hypothesis µ 1 = µ 2= µ 3
b) reject the null hypothesis µ 1  µ 2  µ 3
c) do not reject the null hypothesis µ 1  µ 2  µ 3
d) do not reject the null hypothesis µ 1  µ 2  µ 3
e) inconclusive
Ans: a

23
5.Pate's Pharmacy, Inc. operates a regional chain of 120 pharmacies. Each pharmacy's floor plan
includes a greeting card department which is relatively isolated. Sandra Royo, Marketing
Manager, feels that the level of lighting in the greeting card department may affect sales in that
department. She chooses three levels of lighting (soft, medium, and bright) and randomly assigns
six pharmacies to each lighting level. Analysis of Sandra's data yielded the following ANOVA
table.

Source of Variation SS df MS F
Treatment 3608.333 2 1804.167
Error 13591.67 15 906.1111
Total 17200 17

Using α = 0.05, the observed F value is _____________.

a) 0.5022
b) 0.1333
c) 1.9911
d) 7.5000
e) 1.000
Ans: c

6. Cindy Ho, VP of Finance at Discrete Components, Inc. (DCI), theorizes that the discount level
offered to credit customers affects the average collection period on credit sales. Accordingly,
she has designed an experiment to test her theory using four sales discount rates (0%, 2%, 4%,
and 6%) by randomly assigning five customers to each sales discount rate. In Cindy's
experiment, "average collection period" is ________.
a) the dependent variable
b) a treatment variable
c) a blocking variable
d) a concomitant variable
e) a constant
Ans: a

7.For the following ANOVA table, the dfTreatment value is ___________.

Source of Variation SS df MS F
Treatment 150
Error 40 20
Total 23
a) 3
b) 43
c) 1.15
d) 460
e) 150
Ans: a

24
8.For the following ANOVA table, the MS Treatment value is ___________.

Source of Variation SS df MS F
Treatment 150
Error 40 20
Total 23
a) 150
b) 50
c) 450
d) 3.49
e) 40
Ans: b

9. For the following ANOVA table, the MS Error value is ___________.

Source of Variation SS df MS F
Treatment 150
Error 40 20
Total 23
a) 20
b) 60
c) 800
d) 2
e) 200
Ans: d

Chapter 12

130
120
110
Y

100
90
80
70
1400 1600 1800 2000 2200 2400
X

a) strong negative correlation

25
b) virtually no correlation
c) strong positive correlation
d) moderate negative correlation
e) weak negative correlation
Ans: c

2.According to the following graphic, X and Y have _________.

130
120
110
Y

100
90
80
70
0 5 10 15 20 25 30
X

a) strong negative correlation

b) virtually no correlation
c) strong positive correlation
d) moderate negative correlation
e) weak negative correlation
Ans: b

26
27
28
29
30
 Chapter 13
1.A goodness of fit test is to be performed to see if consumers prefer any of three package
designs (A, B, and C) more than the other two. A sample of 60 consumers is used. What is the
expected frequency for category A?
a) 1/3
b) 20
c) 60
d) 10
e) 30
Ans: b

2.A variable contains five categories. It is expected that data are uniformly distributed across
these five categories. To test this, a sample of observed data is gathered on this variable resulting
in frequencies of 27, 30, 29, 21, and 24. Using  = .01, the degrees of freedom for this test are
_______.
a) 5
b) 4
c) 3
d) 2
e) 1
Ans: b

3.A variable contains five categories. It is expected that data are uniformly distributed across
these five categories. To test this, a sample of observed data is gathered on this variable resulting
in frequencies of 27, 30, 29, 21, and 24. Using  = .01, the observed value of chi-square is
_______.
a) 12.09
b) 9.82
c) 13.28
d) 17.81
e) 2.09
Ans: e

4.A test of independence is to be performed. The contingency table has 4 rows and 5 columns.
What would the degrees of freedom be?
a) 20
b) 9

31
c) 7
d) 12
e) 19
Ans: d

5. Contingency tables should not be used with expected cell frequencies _______.
a) less than the number of rows
b) less than the number of columns
c) less than 5
d) less than 30
e) less than 50
Ans: c

6.Use the following set of observed frequencies to test the independence of the two variables.
Variable one has values of 'A' and 'B'; variable two has values of 'C', 'D', and 'E'.

C D E
A 12 10 8
B 20 24 26

Using  = 0.05, the estimates of the expected frequency in row 1 (A) column 1 (C) when the two
variables are independent is _______.
a) 9.6
b) 12
c) 16
d) 10
e) 20
Ans: a

7. Sam Hill, Director of Media Research, is analyzing subscribers to the Life West of the Saline
magazine. He wonders whether subscriptions are influenced by the head of household’s
employment classification. His staff prepared the following contingency table from a random
sample of 300 households.

Head of Household Classification

Clerical Managerial Professional
Subscribes Yes 10 90 60
No 60 60 20

Sam's null hypothesis is ______________.

a) "head of household classification" is related to "subscribes"
b) "head of household classification" is not independent of "subscribes"
c) "head of household classification" is independent of "subscribes”
d) "head of household classification" influences "subscribes"
e) “clerical is not related to managerial”
Ans: c

32
8.A gasoline distributor wonders whether an individual’s income level influences the grade of
gasoline purchased. The following is a contingency table from a random sample of 300
individuals.

Personal Type of Gasoline

Income Regular Premium Extra Premium
Less than $30,000 90 10 20
$30,000 or More 60 60 60
The estimate of the expected number of individuals with income less than $30,000 who purchase
regular gasoline when income and type of gasoline are independent is _______.
a) 60
b) 90
c) 120
d )80
e) 100
Ans: a

9.Statistical techniques based on assumptions about the population from which the sample data
are selected are called _______.
a) population statistics
b) parametric statistics
c) nonparametric statistics
d) chi-square statistics
e) correlation statistics
Ans: b

10. The methods of parametric statistics require ________________.

a) interval or ratio data
b) nominal or ordinal data
c) large samples
d) small samples
e) qualitative data
Ans: a

11.Statistical techniques based on fewer assumptions about the population and the parameters are
called _______.
a) population statistics
b) parametric statistics
c) nonparametric statistics
d) chi-square statistics
e) correlation statistics
Ans: c

33
12.Nonparametric statistics are sometimes called _______________.
a) nominal statistics
b) interval statistics
c) distribution-dependent statistics
d) distribution-free statistics
e) qualitative statistics
Ans: d
13.The nonparametric counterpart of the t test to compare the means of two independent
populations is the _______.
a) chi-square goodness of fit test
b) chi-square test of independence
c) Mann-Whitney U test
d) Wilcoxon test
e) Friedman test
Ans: c

14.The nonparametric counterpart of the t test to compare the means of two related samples is
the _______.
a) chi-square goodness of fit test
b) chi-square test of independence
c) Mann-Whitney U test
d) Wilcoxon test
e) Friedman test
Ans: d

15.The nonparametric alternative to the one-way analysis of variance is the _______.

a) chi-square goodness of fit test
b) Kruskal-Wallis test
c) Mann-Whitney U test
d) Wilcoxon test
e) Friedman test
Ans: b

16.The nonparametric alternative to analysis of variance for a randomized block design is the
_______.
a) chi-square test
b) Kruskal-Wallis test
c) Mann-Whitney U test
d) Wilcoxon test
e) Friedman test
Ans: e

17.Which of the following tests might be used to compare the means of two populations if the
samples are related?
a) Mann-Whitney test
b) Wilcoxon test

34
c) Runs test
d) Spearman’s test
e) Kruskal-Wallis test
Ans: b

18.Which of the following tests should be used to compare the means of three populations if the
sample data is ordinal?
a) one-way analysis of variance
b) Kruskal-Wallis test
c) Wilcoxon test
d) Mann-Whitney test
e) Friedman test
Ans: b

19.The Kruskal-Wallis test is to be used to determine whether there is a significant difference

(alpha = 0.05) between the three groups using the following data:

Group 1 19 21 25 22 33
Group 2 30 24 28 31 35
Group 3 39 32 41 42 27

For this test, how many degrees of freedom should be used?

a) 3
b) 2
c) 4
d) 8
e) 1
Ans: b

20.The null hypothesis in the Kruskal-Wallis test is _______.

a) all populations are identical
b) all sample means are different
c) x and y are not correlated
d) the mean difference is zero
e) all populations are not identical
Ans: a

21.The Spearman correlation coefficient is calculated for a set of data on two variables, x and y.
It appears that as the rank of x increases, the rank of y is decreasing. We would expect the
Spearman correlation coefficient to be ________.
a) equal to zero
b) positive
c) negative
d) greater than 5
e) greater than 1
Ans: c

35
22.Correlation coefficients may be computed for parametric and nonparametric data. If the data
are nonparametric, which of the following should be used?
a) Pearson correlation coefficient
b) Spearman correlation coefficient
c) Gaussian correlation coefficient
d) De Moivre correlation coefficient
e) Gossett correlation coefficient
Ans: b

23.Which of the following is NOT an assumption of the Friedman test?

a) The blocks are independent.
b) The population has a normal distribution.
c) There is no interaction between blocks and treatments.
d) Observations within each block can be ranked.
Ans: b

24.In a Friedman test with 8 treatment levels and 5 blocks, df = _________.

a) 28
b) 40
c) 8
d) 7
e) 6
Ans: d

Source: Test Book-Ken Black

BS - MULTIPLE CHOICE QUESTIONS

In the following multiple-choice questions, circle the correct answer.
1. A numerical value used as a summary measure for a sample, such as sample mean, is known
as a
a. population parameter
b. sample parameter
c. sample statistic
d. population mean

2. Since the population size is always larger than the sample size, then the sample statistic
a. can never be larger than the population parameter
b. can never be equal to the population parameter

36
c. can never be zero
d. can never be smaller than the population parameter

3. Mu is an example of a
a. population parameter
b. sample statistic
c. population variance
d. mode

4. The mean of a sample is

a. always equal to the mean of the population
b. always smaller than the mean of the population
c. computed by summing the data values and dividing the sum by (n - 1)
d. computed by summing all the data values and dividing the sum by the number of items

5. The sum of the percent frequencies for all classes will always equal
a. one
b. the number of classes
c. the number of items in the study
d. 100

6. In a five number summary, which of the following is not used for data summarization?
a. the smallest value
b. the largest value
c. the median
d. the 25th percentile
e. the mean

7. Since the mode is the most frequently occurring data value, it

a. can never be larger than the mean
b. is always larger than the median
c. is always larger than the mean
d. must have a value of at least two
Exhibit - 1
The following data show the number of hours worked by 200 statistics students.
Number of Hours Frequency

37
0-9 40
10 - 19 50
20 - 29 70
30 - 39 40
8. Refer to Exhibit 1. The class width for this distribution
a. is 9
b. is 10
c. is 11
d. varies from class to class

9. Refer to Exhibit 1. The number of students working 19 hours or less

a. is 40
b. is 50
c. is 90
d. can not be determined without the original data

10. Refer to Exhibit 1. The relative frequency of students working 9 hours or less
a. is .2
b. is .45
c. is 40
d. can not be determined from the information given

11. Refer to Exhibit 1. The cumulative relative frequency for the class of 10 - 19
a. is 90
b. is .25
c. is .45
d. can not be determined from the information given

12. The difference between the largest and the smallest data values is the
a. variance
b. interquartile range
c. range
d. coefficient of variation

13. Which of the following is not a measure of central location?

a. mean
b. median

38
c. variance
d. mode

14. If a data set has an even number of observations, the median

a. can not be determined
b. is the average value of the two middle items
c. must be equal to the mean
d. is the average value of the two middle items when all items are arranged in ascending order

15. The sum of deviations of the individual data elements from their mean is
a. always greater than zero
b. always less than zero
c. sometimes greater than and sometimes less than zero, depending on the data elements
d. always equal to zero

16. The value that has half of the observations above it and half the observations below it is
called the
a. range
b. median
c. mean
d. mode
17. The most frequently occurring value of a data set is called the
a. range
b. mode
c. mean
d. median
18.. In a sample of 800 students in a university, 160, or 20%, are Business majors. Based on the
above information, the school's paper reported that "20% of all the students at the university are
Business majors." This report is an example of
a. a sample
b. a population
c. statistical inference
d. descriptive statistics
19.. A statistics professor asked students in a class their ages. On the basis of this information,
the professor states that the average age of all the students in the university is 21 years. This is an
example of

39
a. a census
b. descriptive statistics
c. an experiment
d. statistical inference
20. A tabular summary of a set of data showing the fraction of the total number of items in
several classes is a
a. frequency distribution
b. relative frequency distribution
c. frequency
d. cumulative frequency distribution
21. The standard deviation of a sample of 100 observations equals 64. The variance of the
sample equals
a. 8
b. 10
c. 6,400
d. 4,096
22. The variance of a sample of 81 observations equals 64. The standard deviation of the sample
equals
a. 0
b. 4096
c. 8
d. 6,561

Exhibit - 2
A researcher has collected the following sample data.
5 12 6 8 56 7 5 12 4
23. Refer to Exhibit 2. The median is
a. 5
b. 6
c. 7
d. 8
24. Refer to Exhibit 2. The mode is
a. 5
b. 6

40
c. 7
d. 8
25. Refer to Exhibit 2. The mean is
a. 5
b. 6
c. 7
d. 8
Exhibit 3
A researcher has collected the following sample data. The mean of the sample is 5.
3 5 12 3 2
26. Refer to Exhibit 3. The variance is
a. 80
b. 4.062
c. 13.2
d. 16.5
27. Refer to Exhibit 3. The standard deviation is
a. 8.944
b. 4.062
c. 13.2
d. 16.5
28. Refer to Exhibit 3. The coefficient of variation is
a. 72.66%
b. 81.24%
c. 264%
d. 330%
29. Refer to Exhibit 3. The range is
a. 1
b. 2
c. 10
d. 12

30. Refer to Exhibit 3. The interquartile range is

a. 1
b. 2
c. 10
d. 12

41
Exhibit 4
The following is the frequency distribution for the speeds of a sample of automobiles traveling
on an interstate highway.
Speed
Miles per Hour Frequency
50 - 54 2
55 - 59 4
60 - 64 5
65 - 69 10
70 - 74 9
75 - 79 5

31. Refer to Exhibit 4. The mean is

a. 35
b. 670
c. 10
d. 67

32. Refer to Exhibit 4. The variance is

a. 6.969
b. 7.071
c. 48.570
d. 50.000
33. Refer to Exhibit 4. The standard deviation is
a. 6.969
b. 7.071
c. 48.570
d. 50.000

34. Which of the following is not a measure of dispersion?

a. the range
b. the 50th percentile
c. the standard deviation
d. the interquartile range
e. the variance

35. If the variance of a data set is correctly computed with the formula using n - 1 in the
denominator, which of the following is true?

42
a. the data set is a sample
b. the data set is a population
c. the data set could be either a sample or a population
d. the data set is from a census

36. In computing descriptive statistics from grouped data,

a. data values are treated as if they occur at the midpoint of a class
b. the grouped data result is more accurate than the ungrouped result
c. the grouped data computations are used only when a population is being analyzed
d. All of the above answers are correct.

37. The measure of dispersion that is influenced most by extreme values is

a. the variance
b. the standard deviation
c. the range
d. the interquartile range:
38. When should measures of location and dispersion be computed from grouped data rather than
from individual data values?
a. as much as possible since computations are easier
b. only when individual data values are unavailable
c. whenever computer packages for descriptive statistics are unavailable
d. only when the data are from a population

39. The descriptive measure of dispersion that is based on the concept of a deviation about the
mean is
a. the range
b. the interquartile range
c. both a and b
d. the standard deviation

40. If two events are independent, then

a. they must be mutually exclusive

b. the sum of their probabilities must be equal to one
c. their intersection must be zero
d. None of these alternatives is correct.

41. Two events, A and B, are mutually exclusive and each have a nonzero probability. If
event A is known to occur, the probability of the occurrence of event B is

43
a. one
b. any positive value
c. zero
d. any value between 0 to 1

42. A numerical description of the outcome of an experiment is called a

a. descriptive statistic
b. probability function
c. variance
d. random variable

43. In the textile industry, a manufacturer is interested in the number of blemishes or flaws
occurring in each 100 feet of material. The probability distribution that has the greatest
chance of applying to this situation is the

a. normal distribution
b. binomial distribution
c. Poisson distribution
d. uniform distribution

44. Which of the following is not a property of a binomial experiment?

a. the experiment consists of a sequence of n identical trials

b. each outcome can be referred to as a success or a failure
c. the probabilities of the two outcomes can change from one trial to the next
d. the trials are independent

45. The level of significance is the

a. maximum allowable probability of Type II error

b. maximum allowable probability of Type I error
c. same as the confidence coefficient
d. same as the p-value

46. An important application of the chi-square distribution is

a. making inferences about a single population variance

b. testing for goodness of f it
c. testing for the independence of two variables
d. All of these alternatives are correct.

47. For a continuous random variable x, the probability density function f(x) represents

44
a. the probability at a given value of x
b. the area under the curve at x
c. the area under the curve to the right of x
d. the height of the function at x

48. Convenience sampling is an example of

a. probabilistic sampling
b. stratified sampling
c. nonprobabilistic sampling
d. cluster sampling

49. In hypothesis testing, the hypothesis tentatively assumed to be true is

a. the alternative hypothesis

b. the null hypothesis
c. either the null or the alternative
d. None of these alternatives is correct.

50. In point estimation

a. data from the population is used to estimate the population parameter

b. data from the sample is used to estimate the population parameter
c. data from the sample is used to estimate the sample statistic
d. the mean of the population equals the mean of the sample

51. A variable that takes on the values of 0 or 1 and is used to incorporate the effect of
qualitative variables in a regression model is called

a. an interaction
b. a constant variable
c. a dummy variable
d. None of these alternatives is correct.

52. A property of a point estimator that occurs whenever larger sample sizes tend to provide
point estimates closer to the population parameter is known as

a. efficiency
b. unbiased sampling
c. consistency
d. relative estimation

53. If a hypothesis is rejected at the 5% level of significance, it

45
a. will always be rejected at the 1% level
b. will always be accepted at the 1% level
c. will never be tested at the 1% level
d. may be rejected or not rejected at the 1% level

54. Which of the following doesnotneed to be known in order to compute the p-value?

a. knowledge of whether the test is one-tailed or two-tailed

b. the value of the test statistic
c. the level of significance
d. None of these alternatives is correct.

55. The ANOVA procedure is a statistical approach for determining whether or not

a. the means of two samples are equal

b. the means of two or more samples are eq ual
c. the means of more than two samples are equal
d. the means of two or more populations are equal

56. A random sample of 121 bottles of cologne showed an average content of 4 ounces. It is
known that the standard deviation of the contents (i.e., of the population) is 0.22 ounces.
In this problem the 0.22 is

a. a parameter
b. a statistic
c. the standard error of the mean
d. the average content of colognes in the long run

57. Whenever using the t distribution in estimation, we must assume that

a. the sample size is at least 30

b. the sampling distribution is approximately normal
c. the population is approximately normal
d. the finite population correction factor is necessary

58. From a population of 200 elements, a sample of 49 elements is selected. It is determined that
the sample mean is 56 and the sample standard deviation is 14. The standard error of the mean is

a. 3
b. 2
c. greater than 2
d. less than 2

46
59. If P(A) = 0.38, P(B) = 0.83, and P(A∪ B) = 0.57; then P(A/ B) =

a. 1.21
b. 0.64
c. 0.78
d. 1.78

60. If P(A) = 0.62, P(B) = 0.47, and P(A/ B) = 0.88; then P(A∪ B) =

a. 0.2914
b. 1.9700
c. 0.6700
d. 0.2100

61. If P(A) = 0.85, P(A∪ B) = 0.72, and P(A∩ B) = 0.66, then P(B) =

a. 0.15
b. 0.53
c. 0.28
d. 0.15

62. A researcher was interested in stress levels of lecturers during lectures. She took the same
group of 8 lecturers and measured their anxiety (out of 15) during a normal lecture and again in a
lecture in which she had paid students to be disruptive and misbehave. The data were not
normally distributed. Which test should she use to compare her experimental conditions?

a. Paired samples t-test

b. Mann–Whitney test
c. Wilcoxon rank-sum test
d. Wilcoxon signed-rank test

63. A researcher measured the same group of people’s physiological reactions while watching
horror films and compared them to when watching comedy films. The resulting data were
skewed. What test should be used to analyse the data?

a. Independent t-test
b. Wilcoxon signed-rank test
c. Dependent (related) t-test
d. Mann–Whitney test

64. A researcher measured the same group of people’s physiological reactions while watching
horror films and compared them to when watching comedy films, and a documentary about
wildlife. The resulting data were skewed. What test should be used to analyse the data?

a. Independent analysis of variance

47
b. Repeated-measures analysis of variance
c. Friedman’s ANOVA
d. Kruskal–Wallis test

65. Assuming the assumptions of parametric tests are met, non-parametric tests, compared to
their parametric counterparts:

a. Are all of these.

b. Are more conservative.
c. Are less likely to accept the alternative hypothesis.
d. Have less statistical power.

66. What symbol represents the test statistic for the Mann–Whitney test?

a. Ws
b. T
c. U
d. H

48
BS - MULTIPLE CHOICE QUESTIONS
In the following multiple-choice questions, circle the correct answer.
1. A numerical value used as a summary measure for a sample, such as sample mean, is known
as a
a. population parameter
b. sample parameter
c. sample statistic
d. population mean

2. Since the population size is always larger than the sample size, then the sample statistic
a. can never be larger than the population parameter
b. can never be equal to the population parameter
c. can never be zero
d. can never be smaller than the population parameter

3. Mu is an example of a
a. population parameter
b. sample statistic
c. population variance
d. mode

4. The mean of a sample is

a. always equal to the mean of the population
b. always smaller than the mean of the population
c. computed by summing the data values and dividing the sum by (n - 1)
d. computed by summing all the data values and dividing the sum by the number of items

5. The sum of the percent frequencies for all classes will always equal
a. one
b. the number of classes
c. the number of items in the study
d. 100

6. In a five number summary, which of the following is not used for data summarization?
a. the smallest value
b. the largest value
c. the median

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

d. the 25th percentile
e. the mean

7. Since the mode is the most frequently occurring data value, it

a. can never be larger than the mean
b. is always larger than the median
c. is always larger than the mean
d. must have a value of at least two
Exhibit - 1
The following data show the number of hours worked by 200 statistics students.
Number of Hours Frequency
0-9 40
10 - 19 50
20 - 29 70
30 - 39 40
8. Refer to Exhibit 1. The class width for this distribution
a. is 9
b. is 10
c. is 11
d. varies from class to class

9. Refer to Exhibit 1. The number of students working 19 hours or less

a. is 40
b. is 50
c. is 90
d. can not be determined without the original data

10. Refer to Exhibit 1. The relative frequency of students working 9 hours or less
a. is .2
b. is .45
c. is 40
d. can not be determined from the information given

11. Refer to Exhibit 1. The cumulative relative frequency for the class of 10 - 19
a. is 90
b. is .25

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

c. is .45
d. can not be determined from the information given

12. The difference between the largest and the smallest data values is the
a. variance
b. interquartile range
c. range
d. coefficient of variation

13. Which of the following is not a measure of central location?

a. mean
b. median
c. variance
d. mode

14. If a data set has an even number of observations, the median

a. can not be determined
b. is the average value of the two middle items
c. must be equal to the mean
d. is the average value of the two middle items when all items are arranged in ascending order

15. The sum of deviations of the individual data elements from their mean is
a. always greater than zero
b. always less than zero
c. sometimes greater than and sometimes less than zero, depending on the data elements
d. always equal to zero

16. The value that has half of the observations above it and half the observations below it is
called the
a. range
b. median
c. mean
d. mode
17. The most frequently occurring value of a data set is called the
a. range
b. mode

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

c. mean
d. median
18.. In a sample of 800 students in a university, 160, or 20%, are Business majors. Based on the
above information, the school's paper reported that "20% of all the students at the university are
Business majors." This report is an example of
a. a sample
b. a population
c. statistical inference
d. descriptive statistics
19.. A statistics professor asked students in a class their ages. On the basis of this information,
the professor states that the average age of all the students in the university is 21 years. This is an
example of
a. a census
b. descriptive statistics
c. an experiment
d. statistical inference
20. A tabular summary of a set of data showing the fraction of the total number of items in
several classes is a
a. frequency distribution
b. relative frequency distribution
c. frequency
d. cumulative frequency distribution
21. The standard deviation of a sample of 100 observations equals 64. The variance of the
sample equals
a. 8
b. 10
c. 6,400
d. 4,096
22. The variance of a sample of 81 observations equals 64. The standard deviation of the sample
equals
a. 0
b. 4096
c. 8
d. 6,561

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

Exhibit - 2
A researcher has collected the following sample data.
5 12 6 8 5 6 7 5 12 4
23. Refer to Exhibit 2. The median is
a. 5
b. 6
c. 7
d. 8
24. Refer to Exhibit 2. The mode is
a. 5
b. 6
c. 7
d. 8
25. Refer to Exhibit 2. The mean is
a. 5
b. 6
c. 7
d. 8
Exhibit 3
A researcher has collected the following sample data. The mean of the sample is 5.
3 5 12 3 2
26. Refer to Exhibit 3. The variance is
a. 80
b. 4.062
c. 13.2
d. 16.5
27. Refer to Exhibit 3. The standard deviation is
a. 8.944
b. 4.062
c. 13.2
d. 16.5
28. Refer to Exhibit 3. The coefficient of variation is
a. 72.66%
b. 81.24%
c. 264%
d. 330%

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

29. Refer to Exhibit 3. The range is
a. 1
b. 2
c. 10
d. 12

30. Refer to Exhibit 3. The interquartile range is

a. 1
b. 2
c. 10
d. 12
Exhibit 4
The following is the frequency distribution for the speeds of a sample of automobiles traveling
on an interstate highway.
Speed
Miles per Hour Frequency
50 - 54 2
55 - 59 4
60 - 64 5
65 - 69 10
70 - 74 9
75 - 79 5

31. Refer to Exhibit 4. The mean is

a. 35
b. 670
c. 10
d. 67

32. Refer to Exhibit 4. The variance is

a. 6.969
b. 7.071
c. 48.570
d. 50.000
33. Refer to Exhibit 4. The standard deviation is
a. 6.969
b. 7.071

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

c. 48.570
d. 50.000

34. Which of the following is not a measure of dispersion?

a. the range
b. the 50th percentile
c. the standard deviation
d. the interquartile range
e. the variance

35. If the variance of a data set is correctly computed with the formula using n - 1 in the
denominator, which of the following is true?
a. the data set is a sample
b. the data set is a population
c. the data set could be either a sample or a population
d. the data set is from a census

36. In computing descriptive statistics from grouped data,

a. data values are treated as if they occur at the midpoint of a class
b. the grouped data result is more accurate than the ungrouped result
c. the grouped data computations are used only when a population is being analyzed
d. All of the above answers are correct.

37. The measure of dispersion that is influenced most by extreme values is

a. the variance
b. the standard deviation
c. the range
d. the interquartile range:
38. When should measures of location and dispersion be computed from grouped data rather than
from individual data values?
a. as much as possible since computations are easier
b. only when individual data values are unavailable
c. whenever computer packages for descriptive statistics are unavailable
d. only when the data are from a population

39. The descriptive measure of dispersion that is based on the concept of a deviation about the
mean is

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

a. the range
b. the interquartile range
c. both a and b
d. the standard deviation

40. If two events are independent, then

a. they must be mutually exclusive

b. the sum of their probabilities must be equal to one
c. their intersection must be zero
d. None of these alternatives is correct.

41. Two events, A and B, are mutually exclusive and each have a nonzero probability. If
event A is known to occur, the probability of the occurrence of event B is

a. one
b. any positive value
c. zero
d. any value between 0 to 1

42. A numerical description of the outcome of an experiment is called a

a. descriptive statistic
b. probability function
c. variance
d. random variable

43. In the textile industry, a manufacturer is interested in the number of blemishes or flaws
occurring in each 100 feet of material. The probability distribution that has the greatest
chance of applying to this situation is the

a. normal distribution
b. binomial distribution
c. Poisson distribution
d. uniform distribution

44. Which of the following is not a property of a binomial experiment?

a. the experiment consists of a sequence of n identical trials

b. each outcome can be referred to as a success or a failure
c. the probabilities of the two outcomes can change from one trial to the next
d. the trials are independent

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

45. The level of significance is the

a. maximum allowable probability of Type II error

b. maximum allowable probability of Type I error
c. same as the confidence coefficient
d. same as the p-value

46. An important application of the chi-square distribution is

a. making inferences about a single population variance

b. testing for goodness of f it
c. testing for the independence of two variables
d. All of these alternatives are correct.

47. For a continuous random variable x, the probability density function f(x) represents

a. the probability at a given value of x

b. the area under the curve at x
c. the area under the curve to the right of x
d. the height of the function at x

48. Convenience sampling is an example of

a. probabilistic sampling
b. stratified sampling
c. non probabilistic sampling
d. cluster sampling

49. In hypothesis testing, the hypothesis tentatively assumed to be true is

a. the alternative hypothesis

b. the null hypothesis
c. either the null or the alternative
d. None of these alternatives is correct.

50. In point estimation

a. data from the population is used to estimate the population parameter

b. data from the sample is used to estimate the population parameter
c. data from the sample is used to estimate the sample statistic
d. the mean of the population equals the mean of the sample

51. A variable that takes on the values of 0 or 1 and is used to incor porate the effect of
qualitative variables in a regression model is called

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

a. an interaction
b. a constant variable
c. a dummy variable
d. None of these alternatives is correct.

52. A property of a point estimator that occurs whenever larger sample sizes tend to provide
point estimates closer to the population parameter is known as

a. efficiency
b. unbiased sampling
c. consistency
d. relative estimation

53. If a hypothesis is rejected at the 5% level of significance, it

a. will always be rejected at the 1% level

b. will always be accepted at the 1% level
c. will never be tested at the 1% level
d. may be rejected or not rejected at the 1% level

54. Which of the following does not need to be known in order to compute the p-value?

a. knowledge of whether the test is one-tailed or two-tailed

b. the value of the test statistic
c. the level of significance
d. None of these alternatives is correct.

55. The ANOVA procedure is a statistical approach for determining whether or not

a. the means of two samples are equal

b. the means of two or more samples are eq ual
c. the means of more than two samples are equal
d. the means of two or more populations are equal

56. A random sample of 121 bottles of cologne showed an average content of 4 ounces. It is
known that the standard deviation of the contents (i.e., of the population) is 0.22 ounces.
In this problem the 0.22 is

a. a parameter
b. a statistic
c. the standard error of the mean
d. the average content of colognes in the long run

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

57. Whenever using the t distribution in estimation, we must assume that

a. the sample size is at least 30

b. the sampling distribution is approximately normal
c. the population is approximately normal
d. the finite population correction factor is necessary

58. From a population of 200 elements, a sample of 49 elements is selected. It is determined that
the sample mean is 56 and the sample standard deviation is 14. The standard error of the mean is

a. 3
b. 2
c. greater than 2
d. less than 2

59. If P(A) = 0.38, P(B) = 0.83, and P(A B) = 0.57; then P(A B) =

a. 1.21
b. 0.64
c. 0.78
d. 1.78

60. If P(A) = 0.62, P(B) = 0.47, and P(A B) = 0.88; then P(A B) =

a. 0.2914
b. 1.9700
c. 0.6700
d. 0.2100

61. If P(A) = 0.85, P(A B) = 0.72, and P(A B) = 0.66, then P(B) =

a. 0.15
b. 0.53
c. 0.28
d. 0.15

62. A researcher was interested in stress levels of lecturers during lectures. She took the same
group of 8 lecturers and measured their anxiety (out of 15) during a normal lecture and again in a
lecture in which she had paid students to be disruptive and misbehave. The data were not
normally distributed. Which test should she use to compare her experimental conditions?

a. Paired samples t-test

b. Mann–Whitney test
c. Wilcoxon rank-sum test
d. Wilcoxon signed-rank test

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH

63. A researcher measured the same group of people’s physiological reactions while watching
horror films and compared them to when watching erotic films. The resulting data were skewed.
What test should be used to analyse the data?

a. Independent t-test
b. Wilcoxon signed-rank test
c. Dependent (related) t-test
d. Mann–Whitney test

64. A researcher measured the same group of people’s physiological reactions while watching
horror films and compared them to when watching erotic films, and a documentary about
wildlife. The resulting data were skewed. What test should be used to analyse the data?

a. Independent analysis of variance

b. Repeated-measures analysis of variance
c. Friedman’s ANOVA
d. Kruskal–Wallis test

65. Assuming the assumptions of parametric tests are met, non-parametric tests, compared to
their parametric counterparts:

a. Are all of these.

b. Are more conservative.
c. Are less likely to accept the alternative hypothesis.
d. Have less statistical power.

66. What symbol represents the test statistic for the Mann–Whitney test?

a. Ws
b. T
c. U
d. H

PREPARED BY: DR. ANITHA SUNIL AND DR. RAJANI SHAH