Essentials of Business Development – Statistics

Question 1
4 / 4 pts
The process of using sample statistics to draw conclusions about population parameters
is called

Finding the significance level

Calculating descriptive statistics

Correct!

Doing inferential statistics

Calculating the confidence level

Question 2
4 / 4 pts
Time series data are often graphically depicted on a line chart, which is a plot of the
variable of interest over time.
Correct!

True

False
Question 3
4 / 4 pts
Which of the following represents a graphical presentation of interval data?

A bar chart

Correct!

A histogram

A pie chart

All of these choices are true

Question 4
4 / 4 pts
Observations that are measured at the same time represent what type of data?

Time-series data

Correct!

Cross-sectional data

Synchronous data
None of these choices

Question 5
4 / 4 pts
Which of the following statements is true for the following observations: 9, 8, 5, 9, 6, 11,
and 13?

The mean, median, and mode are all equal

Only the mean and median are equal

Only the mean and mode are equal

Correct!

Only the median and mode are equal

Question 6
4 / 4 pts
Which of these measures of central location is not sensitive to extreme values?

The mean

Correct!

The median
The mode

All of these choices are true

Question 7
4 / 4 pts
The following data represent the number of children in a sample of 10 families from a
certain community: 4, 2, 1, 1, 5, 3, 0, 1, 0, and 2. Use Excel to compute the standard
deviation.

1.58

Correct!

1.66

2.77

None of these choices

Question 8
4 / 4 pts
Which of the following are measures of the linear relationship between two variables?
The covariance

The coefficient of correlation

The variance

Correct!

Both A and B

Question 9
4 / 4 pts
For variables X and Y, the value of the coefficient of correlation is found to be 0.95.
There is
Correct!

A strong positive linear relationship between the two variables

A weak positive linear relationship between the two variables

No relationship between the two variables

No choice is correct
Question 10
4 / 4 pts
A researcher conducts a study where she divides subjects into two groups, gives each
group a certain treatment, and records their responses. What type of data collection is
being used here?
Correct!

An experiment

Direct observation

A survey

A census

Question 11
4 / 4 pts
The admissions officer from a large university mailed a survey to 600 students selected
at random. The sample was designed to include 150 students randomly selected from
each of the freshman, sophomore, junior, and senior classes on campus. What
sampling method was used?

Simple random sample

Systematic sample

Correct!
Stratified random sample

Cluster sample

Question 12
4 / 4 pts
A smaller standard deviation of a normal distribution indicates that the distribution
becomes
Correct!

Narrower and more peaked

Flatter and wider

More skewed to the right

More skewed to the left

Question 13
4 / 4 pts
Let X be a normally distributed random variable with a mean of 12 and a standard
deviation of 1.75. What proportion of the values of X are less than 14?
Correct!

0.873
0.750

0.625

None of these choices

Question 14
4 / 4 pts
A spouse suspects that the average amount of money spent on Christmas gifts for
immediate family members is above $1,200. The correct set of hypotheses is

H0: µ = 1200 vs. H1: µ < 1200

H0: µ > 1200 vs. H1: µ = 1200

Correct!

H0: µ = 1200 vs. H1: µ > 1200

H0: µ < 1200 vs. H1: µ = 1200

Question 15
4 / 4 pts
A Type I error occurs when we
Reject a false null hypothesis

Correct!

Reject a true null hypothesis

Don't reject a false null hypothesis

Don't reject a true null hypothesis

Question 16
0 / 4 pts
A simple random sample of 100 concert tickets was drawn from a normal population.
The mean and standard deviation of the sample were $120 and $25, respectively. Test
the hypothesis H0: µ = 125 vs. H1: µ ≠ 125 at the 1% significance level.

Rejection region: | t | > t0.05,99 = 1.66

Test statistic: t = -2.0
p-value one tail= 0.024
p-value two tail= 0.048

What is your conclusion?

Correct Answer

Don't reject H0

Reject H0

You Answered

We can infer that the population mean is not equal to $125

(incorrect)

There is not enough information to draw a conclusion

Question 17
4 / 4 pts
One-way ANOVA is applied to independent samples taken from four normally distributed
populations with equal variances. If the null hypothesis is rejected, then we can infer
that

All population means are equal

All population means differ

At least two population means are equal

Correct!

At least two population means differ

Question 18
4 / 4 pts
The marketing manager of a sub shop chain is in the process of examining some of the
demographic characteristics of her customers. In particular, she would like to investigate
the belief that the ages of the customers of sub shops, hamburger emporiums, and fast-
food chicken restaurants are different. The ages of eight randomly selected customers
of each of the restaurants are recorded and listed below. From previous analyses we
know that the ages are normally distributed with equal variances for each group.

True or False: It can be inferred at the 5% significance level that there are differences in
ages among the customers of the three restaurants.

True

Correct!

False
Question 19
4 / 4 pts
Motorcycle insurance appraisers examine motorcycles that have been involved in
accidental collisions and estimate the cost of repairs. An insurance executive claims that
there are significant differences in the estimates from different appraisers. To support
his claim he takes a random sample of six motorcycles that have recently been
damaged in accidents. Three appraisers then estimate the repair costs of all six
motorcycles. The data are shown below.

True or False: It can be inferred at the 5% significance level that at least two of the
treatments differ.
Correct!

True

False

Question 20
4 / 4 pts
A regression analysis between sales (in $1000) and advertising (in $100) resulted in the
following least squares line: ŷ = 75 + 6x. This implies that if advertising is $700, then the
predicted amount of sales (in dollars) is

$4,275

Correct!

$117,000

$427,500
None of these choices

Question 21
4 / 4 pts
A regression analysis between sales (in $1,000) and advertising (in $1,000) resulted in
the following least squares line: ŷ = 80 + 5x. This implies that
Correct!

As advertising increases by $1,000, sales increases by $5,000

As advertising increases by $1,000, sales increases by $80,000

As advertising increases by $5, sales increases by $80

None of these choices

Question 22
4 / 4 pts
In a regression problem, if the coefficient of determination is 0.93, this means that

93% of the y values are positive

Correct!

93% of the variation in y can be explained by the variation in x

93% of the y values are predicted correctly by the model

None of these choices

Question 23
4 / 4 pts
For the following multiple regression model: ŷ = 2 - 3x1 + 4x2 + 5x3, a unit increase in x1,
holding x2 and x3 constant, results in
Correct!

A decrease of 3 units on average in the value of y

An increase of 8 units in the value of y

An increase of 3 units on average in the value of y

None of these choices

Question 24
4 / 4 pts
A real estate builder wishes to determine how house size is influenced by family
income, family size, and education of the head of household. House size is measured in
hundreds of square feet, income is measured in thousands of dollars, and education is
measured in years. A partial computer output is shown below.

True or False: The data provide enough evidence at the 5% significance level to
conclude that family income and house size are linearly related.
Correct!

True

False

Question 25
0 / 4 pts
A real estate builder wishes to determine how house size is influenced by family
income, family size, and education of the head of household. House size is measured in
hundreds of square feet, income is measured in thousands of dollars, and education is
measured in years. A partial computer output is shown below.

True or False: Testing the overall validity of the model reveals that the model is valid.
Correct Answer

True

You Answered

False

Quiz Score: 92 out of 100