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Statistics for Business (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)
30. Because 25 percent of the students in my morning statistics class watch eight or more
hours of television a week, I conclude that 25 percent of all students at the university
watch eight or more hours of television a week. The most important logical weakness
of this conclusion would be:
There is an unattractive name for a consultant who always agrees with the client.
33. Which is not a practical constraint facing the business researcher or data analyst?
Paid respondents may try to tell you what you want to hear.
A. Effective
writer
B. Stays current on
techniques
C. Has a Ph.D. or master's degree in
statistics
D. Can deal with imperfect
information
No advanced degree is needed for basic statistics, which is why all business students
study it.
There is a nasty name for a consultant who always agrees with management.
36. The NASA experiences with the Challenger and Columbia disasters suggest that:
When small samples are all that we have, we must study them carefully.
A. To be an honest broker of
data
B. To learn to downplay inconvenient
data
C. To understand the firm's code of ethics (or help
create one)
D. To look for hidden agendas in data
collection
Few firms have staffs of statistics experts, so all of us need to know the basics.
39. "Smoking is not harmful. My Aunt Harriet smoked, but lived to age 90." This best
illustrates which fallacy?
A. Unconscious
bias
B. Significance versus practical
importance
C. Post hoc
reasoning
D. Small sample
generalization
40. Which best illustrates the distinction between statistical significance and practical
importance?
A. "In 2006, 240 out of 400 statistics students at Oxnard Technical College sold their
textbooks at the end of the semester, compared with 220 out of 330 students in
2005, a significant decrease."
B. "Our new manufacturing technique has increased the life of the 80 GB USB
AsimoDrive external hard disk significantly, from 240,000 hours to 250,000 hours."
C. "In 50,000 births, the new vaccine reduced the incidence of infant mortality in
Morrovia significantly from 14.2 deaths per 1000 births to 10.3 deaths per 1000
births."
D. "The new Sky Penetrator IV business jet's cruising range has increased significantly
from 3,975 miles to 4,000 miles."
41. "Circulation fell in the month after the new editor took over the newspaper Oxnard
News Herald. The new editor should be fired." Which is not a serious fallacy in this
conclusion?
When you farm out your calculations, you have lost control of your work.
43. "Tom's SUV rolled over. SUVs are dangerous." This best illustrates which fallacy?
A. Unconscious
bias
B. Significance versus practical
importance
C. Post hoc
reasoning
D. Small sample
generalization
59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.
A. nomin
al
B. ordin
al
C. interv
al
D. rati
o
60. Your rating of the food served at a local restaurant using a three-point scale of 0 =
gross, 1 = decent, 2 = yummy is ___________ data.
A. nomin
al
B. ordin
al
C. interv
al
D. rati
o
A. nomin
al
B. ordin
al
C. interv
al
D. rati
o
True zero exists (not observable, but as a reference point), so ratios have meaning.
A. Random dialing phone surveys have low response and are poorly
targeted.
B. Selection bias means that many respondents dislike the
interviewer.
C. Simple random sampling requires a list of the
population.
D. Web surveys are economical but suffer from
nonresponse bias.
72. Professor Hardtack chose a sample of 7 students from his statistics class of 35
students by picking every student who was wearing red that day. Which kind of
sample is this?
A. Simple random
sample
B. Judgment
sample
C. Systematic
sample
D. Convenience
sample
With 500 data values, a column chart would reveal little. Make a histogram instead.
Line charts are for time series data (not cross-sectional data).
43. Which is a reason for using a log scale for time series data?
Changing magnitude may become a problem unless you use a log scale.
Pie charts with too many slices are hard to read whether 2D or 3D.
Avoid novelty charts in business presentations. They are fun but unclear.
46. Which is not a reason why pie charts are popular in business?
Too much accuracy may make it harder to assess magnitudes (e.g., 5.01873 mm and
5.02016 mm both round to 5.02 mm).
A pivot table shows frequency counts (or sums or averages) in a row-column format.
A. Nonzero
origin
B. Elastic graph
proportions
C. Dramatic
title
D. Axis
demarcations
A. Undefined
units
B. 2D
graphs
C. Authority
figures
D. Distracting
pictures
A. Vague
source
B. Using bold
colors
C. Nonzero
origin
D. Unlabeled data
points
A. Gratuitous
pictures
B. Labeled axis
scales
C. 3D bar
charts
D. Rotated
axis
A. Vague or unclear
source
B. Using more than one color or
font
C. Bar widths proportional to bar
height
D. Using a dramatic graph
title
The area trick occurs when bar width increases along with bar height.
62. Which is not a characteristic of a log scale for time series data?
45. In a sample of 10,000 observations from a normal population, how many would
you expect to lie beyond three standard deviations of the mean?
A. None of
them
B. About
27
C. About
100
D. About
127
48. Estimating the mean from grouped data will tend to be most accurate when:
Many bins and uniform data distribution within bins would give a result closest to the
ungrouped mean μ.
Shape is hard to judge in small samples. The 50 is just a rule of thumb. Excel
computes kurtosis for samples of any size, but tables of critical values may not go
down below 50.
Skewness due to extreme data values is common in business data. Right skewness is
common, which increases the mean relative to the median.
The mean is pulled down in left-skewed data, but deviations around it sum to zero in
any data set. The median may be between two data values and may not be in the
middle of the box plot.
54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this
data set, which statement is incorrect concerning measures of center?
A. The median is
60.00.
B. The mode is not
helpful.
C. The 5 percent trimmed mean would be
awkward.
D. The geometric mean is
35.05.
To find the geometric mean, multiply the data values and take the 11 th root to get G =
41.02. Outliers affect both the mean and the standard deviation. There are multiple
modes in this example.
55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data
set, which statement is incorrect concerning measures of center?
A. The median is
70.
B. The mode is not
helpful.
C. The geometric mean is
useless.
D. The mean is
70.
56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90,
100. Which statement is incorrect?
57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm
and the mean weight is 84 kg with a standard deviation of 8 kg. Elmer is 170 cm tall
and weighs 70 kg. It is most nearly correct to say that:
Convert Elmer's height and weight to z-scores. For Elmer's weight, z = (x - μ)/σ = (70 -
84)/8 = -1.75, while for Elmer's height, z = (x - μ)/σ = (170 - 178)/8 = -1.00.
Therefore, Elmer is farther from the mean weight than from the mean height.
58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences,
which is correct?
A. John is an extreme
outlier.
B. John is an
outlier.
C. John is not an
outlier.
D. John is in the 85th
percentile.
59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences,
which is correct?
The lower inner fence is 70 - 1.5(80 - 70) = 55 so John is an outlier. Actually, John is an
extreme outlier because the lower outer fence is 70 - 3.0(80 - 70) = 40.
60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population
variance is:
A. 6.0
7.
B. 36.8
2.
C. 5.1
6.
D. 22.8
6.
61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median
are:
A. 69 and
17.5.
B. 66 and
17.5.
C. 66 and
17.
D. 69 and
17.
62. When a sample has an odd number of observations, the median is the:
Median position is always (n + 1)/2. It need not be halfway between the quartiles.
The range is easy to calculate but utilizes only two data values, which may be
unusual.
43. Independent events A and B would be consistent with which of the following
statements:
44. Find the probability that either event A or B occurs if the chance of A occurring is .5,
the chance of B occurring is .3, and events A and B are independent.
A. .
80
B. .
1
5
C. .
65
D. .
85
Given that the events are independent, the product P(A)P(B) must equal P(A∩B). Thus,
P(A or B) = P(A) + P(B) - P(A∩B) = .50 + .30 - (.50)(.30) = .80 - .15 = .65 using the
General Law of Addition.
45. Regarding the rules of probability, which of the following statements is correct?
46. Within a given population, 22 percent of the people are smokers, 57 percent of the
people are males, and 12 percent are males who smoke. If a person is chosen at
random from the population, what is the probability that the selected person is either
a male or a smoker?
A. .
67
B. .
79
C. .
22
D. .
43
47. Information was collected on those who attended the opening of a new movie. The
analysis found that 56 percent of the moviegoers were female, 26 percent were under
age 25, and 17 percent were females under the age of 25. Find the probability that a
moviegoer is either female or under age 25.
A. .
79
B. .
82
C. .
65
D. .
50
A. .
20
B. .
40
C. .
50
D. .
80
49. Given the contingency table shown here, find P(V | W).
A. .
400
0
B. .
095
0
C. .
237
5
D. .
587
5
For example, the Sunday vehicle count on a freeway is a discrete (but large) number.
Time is continuous.
33. The random variable X is the number of shots it takes before you make the first free
throw in basketball. Assuming the probability of success (making a free throw) is
constant from trial to trial, what type of distribution does X follow?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Geometric model describes the number of trials until the first success.
34. Which probability model is most nearly appropriate to describe the number of burned-
out fluorescent tubes in a classroom with 12 fluorescent tubes, assuming a constant
probability of a burned-out tube?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
35. Which distribution is most nearly appropriate to describe the number of fatalities in
Texas in a given year due to poisonous snakebites?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of time with no clear upper limit would resemble a Poisson
distribution.
36. Which model would you use to describe the probability that a call-center operator will
make the first sale on the third call, assuming a constant probability of making a
sale?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
37. In a randomly chosen week, which probability model would you use to describe the
number of accidents at the intersection of two streets?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of time with no clear upper limit would resemble a Poisson
distribution.
38. Which model best describes the number of nonworking web URLs ("This page cannot
be displayed") you encounter in a randomly chosen minute while surfing websites for
Florida vacation rental condos?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of time with no clear upper limit would resemble a Poisson
distribution.
39. Which probability model would you use to describe the number of damaged printers
in a random sample of 4 printers taken from a shipment of 28 printers that contains 3
damaged printers?
A. Poisso
n
B. Hypergeomet
ric
C. Binomi
al
D. Unifor
m
40. Which model best describes the number of incorrect fare quotations by a well-trained
airline ticket agent between 2 p.m. and 3 p.m. on a particular Thursday?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of time with no clear upper limit would resemble a Poisson
distribution.
43. The number of people injured in rafting expeditions on the Colorado River on a
randomly chosen Thursday in August is best described by which model?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Independent events per unit of time with no clear upper limit would be Poisson.
44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a
free mule ride. Ten of the entrants are European tourists. Five entrants are
selected at random to get the free mule ride. Which model best describes the
number of European tourists in the random sample?
A. Binomi
al
B. Poisso
41. n model best describes the number of blemishes per sheet of white bond paper?
Which
C. Hypergeomet
ric
D.
A. Geometr
Binomi
ic
al
B. Poisso
Sampling
n (n = 5 tourists selected) without replacement with known number of
"successes" (s = 10 Europeans) in the population (N = 40).
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of area with no clear upper limit would resemble a Poisson
distribution.
42. To ensure quality, customer calls for airline fare quotations are monitored at random.
On a particular Thursday afternoon, ticket agent Bob gives 40 fare quotations, of
which 4 are incorrect. In a random sample of 8 of these customer calls, which model
best describes the number of incorrect quotations Bob will make?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
46. On a randomly chosen Wednesday, which probability model would you use to describe
the number of convenience store robberies in Los Angeles?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of time with no clear upper limit would be Poisson.
47. Which probability model would you use to describe the number of customers served
at a certain California Pizza Kitchen until the first customer orders split pea soup?
A. Binomi
al
B. Geometr
ic
C. Unifor
m
D. Poisso
n
Geometric distribution describes the number of trials until the first success.
A. Poisson with λ =
25
B. Binomial with n = 200, π
= .05
C. Hypergeometric with N = 100, n = 10,
s = 50
49. Of the following, the one that most resembles a Poisson random variable is the
number of:
Independent arrivals per unit of time with no clear upper limit would be Poisson.
A. 30.
5.
B. 31.
5.
C. 32.
5.
D. 33.
5.
A. 52.
1.
B. 32.
5.
C. 6.8
5.
D. 7.2
2.
A. .
20
B. .
40
C. .
60
D. .
80
36. The Excel function =800*RAND() would generate random numbers with standard
deviation approximately equal to:
A. 20
0.
B. 18
8.
C. 23
1.
D. 40
0.
37. The Excel function =40*RAND() would generate random numbers with standard
deviation approximately equal to
A. 13.3
3.
B. 20.0
0.
C. 11.5
5.
D. 19.2
7.
38. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of
waiting more than 0.5 hour for the next arrival is:
A. .
2407
.
B. .
165
3.
C. .
122
2.
D. .
5000
.
39. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of
waiting less than 0.5 hour for the next arrival is:
A. .
712
2.
B. .
810
5.
C. .
8347
.
D. .
7809
.
40. If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability
of waiting more than 1.5 minutes for the next arrival is:
A. .
0202
.
B. .
012
2.
C. .
0535
.
D. .
2564
.
41. If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability
of waiting less than 1 minute for the next arrival is:
A. .
201
9.
B. .
710
4.
C. .
881
2.
D. .
798
1.
42. Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of
the Ornithorhynchus." Bob said, "Oh, good, my score is in the top 10 percent."
Assuming a normal distribution of scores, is Bob right?
A. Yes
.
B. No
.
C. Must have n to
answer.
43. The lengths of brook trout caught in a certain Colorado stream are normally
distributed with a mean of 14 inches and a standard deviation of 3 inches. What
proportion of brook trout caught will be between 12 and 18 inches in length?
A. .
656
3
B. .
682
6
C. .
248
6
D. .
408
2
P(12 < X < 18) = P(-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using Excel.
44. The lengths of brook trout caught in a certain Colorado stream are normally
distributed with a mean of 14 inches and a standard deviation of 3 inches. The first
quartile for the lengths of brook trout would be:
A. 16.01
inches.
B. 11.00
inches.
C. 11.98
inches.
D. 10.65
inches.
A. a
parameter.
B. a
statistic
.
C. either a parameter or a
statistic.
D. neither a parameter nor a
statistic.
49. As the sample size increases, the standard error of the mean:
A. increas
es.
B. decreas
es.
C. may increase or
decrease.
50. Which statement is most nearly correct, other things being equal?
A. Doubling the sample size will cut the standard error of the
mean in half.
B. The standard error of the mean depends on the
population size.
C. Quadrupling the sample size roughly halves the standard error of
the mean.
D. The standard error of the mean depends on the
confidence level.
The standard error of the mean is σ/(n1/2) so replacing n by 4n would cut the SEM in
half.
A. the sample
size.
B. the confidence
level.
C. the standard
deviation.
D. the sample
mean.
The mean is not used in calculating the width of the confidence interval zσ/(n1/2).
The sampling distribution of the mean is asymptotically normal for any population.
53. The owner of Limp Pines Resort wanted to know the average age of its clients. A
random sample of 25 tourists is taken. It shows a mean age of 46 years with a
standard deviation of 5 years. The width of a 98 percent CI for the true mean client
age is approximately:
A. ± 1.711
years.
B. ± 2.326
years.
C. ± 2.492
years.
D. ± 2.797
years.
54. In constructing a confidence interval for a mean with unknown variance with a sample
of 25 items, Bob used z instead of t. "Well, at least my interval will be wider than
necessary, so it was a conservative error," said he. Is Bob's statement correct?
A. Yes
.
B. No
.
C. It depends on
μ.
z is always smaller than t (ceteris paribus), so the interval would be narrower than is
justified.
55. A random sample of 16 ATM transactions at the Last National Bank of Flat Rock
revealed a mean transaction time of 2.8 minutes with a standard deviation of 1.2
minutes. The width (in minutes) of the 95 percent confidence interval for the true
mean transaction time is:
A. ±
0.639
B. ±
0.588
C. ±
0.300
D. ±
2.131
A. using 99 percent
confidence.
B. using a larger
sample.
C. raising the standard
error.
55. After testing a hypothesis regarding the mean, we decided not to reject H0. Thus,
we are exposed to:
A. Type I
error.
B. Type II
error.
C. Either Type I or Type II
error.
D. Neither Type I nor Type II
error.
Failure to reject H0 could lead to Type II error (but not Type I error).
56. After testing a hypothesis, we decided to reject the null hypothesis. Thus, we are
exposed to:
A. Type I
error.
B. Type II
error.
C. Either Type I or Type II
error.
D. Neither Type I nor Type II
error.
Only a larger sample can allow a reduction in both α and β (ceteris paribus).
The critical value for the desired α takes the sample size into consideration.
60. John rejected his null hypothesis in a right-tailed test for a mean at α = .025 because
his critical t value was 2.000 and his calculated t value was 2.345. We can be sure
that:
John could have committed Type II error only if he failed to reject H0.
61. "My careful physical examination shows no evidence of any serious problem," said
Doctor Morpheus. "However, a very costly lab test can be performed to check for the
rare condition known as estomalgia fatalis. The test is almost invariably negative for
persons with your age and symptoms. My personal hypothesis is that the occasional
stomach pain you reported is due to indigestion caused by eating tacos with too much
hot sauce. But you must decide for yourself." As you consider your doctor's
hypothesis, what would be the consequence of Type I error on your part?
A larger α will make it easier to reject H0 (e.g., z.05 = 1.645 versus z.01 = 2.326).
63. "I believe your airplane's engine is sound," states the mechanic. "I've been over it
carefully, and can't see anything wrong. I'd be happy to tear the engine down
completely for an internal inspection at a cost of $1,500. But I believe that roughness
you heard in the engine on your last flight was probably just a bit of water in the fuel,
which passed harmlessly through the engine and is now gone." As the pilot considers
the mechanic's hypothesis, the cost of Type I error is:
64. A study over a 10-year period showed that a certain mammogram test had a 50
percent rate of false positives. This indicates that:
65. You are driving a van packed with camping gear (total weight 3,500 pounds including
yourself and family) into a northern wilderness area. You take a "short cut" that turns
into a one-lane road, with no room to turn around. After 11 miles you come to a
narrow bridge with a faded sign saying, "Safe Up to 2 Tons." About a half-mile ahead,
you can see that your road rejoins the main highway. You consider the sign's
hypothesis carefully before making a decision. The cost of Type I error is:
66. After lowering the landing gear, the pilot notices that the "gear down and locked" light
is not illuminated. "It's probably just a burned out light bulb," she says, as she
proceeds on final approach for landing. Considering the pilot's hypothesis, which is
the result of Type I error?
67. As you are crossing a field at the farm, your country cousin Jake assures you, "Don't
worry about that old bull coming toward us. He's harmless." As you consider Jake's
hypothesis, what would be Type I error on your part?
The p-value tells the likelihood of the observed sample result (or one more extreme)
assuming that H0 is true.
A. H0 is rejected when the calculated p-value is less than the critical value of the
test statistic.
B. In a right-tailed test, we reject H0 when the test statistic exceeds the
critical value.
C. The critical value is based on the researcher's chosen level of
significance.
D. If H0: μ ≤ 100 and H1: μ > 100, then the test is
right-tailed.
29. In a right-tailed test comparing two means with known variances, the sample sizes
were n1 = 8 and n2 = 12. At α = .05, the critical value would be:
A. 1.96
0
B. 1.64
5
C. 1.73
4
D. 1.28
2
For a right-tailed test with known variances, we would use z.05 = 1.645.
30. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and
p2 = 18/50. The test statistic is approximately:
A. -
1.44
.
B. -
1.3
1.
C. -
1.67
.
D. Must know α to
answer.
Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.
31. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and
p2 = 18/50. The pooled proportion is:
A. .
20
B. .
24
C. .
36
D. .
30
Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in the
calculation.
32. If the sample proportions were p1 = 12/50 and p2 = 18/50, the 95 percent confidence
interval for the difference of the population proportions is approximately:
A. [-.144,
+.244].
B. [-.120,
+.120].
C. [-.298,
+.058].
D. [-.011,
+.214].
Enter the proportions separately in the formula. (We are not combining the samples.)
33. John wants to compare two means. His sample statistics were
A. [2.44,
6.19].
B. [1.17,
5.08].
C. [0.08,
4.32].
D. [-0.09,
3.19].
Pool the variances and add the degrees of freedom, because equal variances are
assumed.
34.
John wants to compare two means. His sample statistics were
and . Assuming equal variances, the pooled variance is:
A. 4.
5
B. 4.
9
C. 5.
1
D. 3.
8
The pooled variance is [(n1 - 1)s12 + (n2 - 1)s22]/[(n1 - 1) + (n2 - 1)] = 4.5.
35.
John wants to compare two means. His sample statistics were
A. 2.3
7
B. 2.2
0
C. 1.9
6
D. Must know α to
answer.
The pooled variance is (n1 - 1)s12 + (n2 - 1)s22 = (9 - 1)(5.4) + (9 - 1)(3.6) = 4.5.
36.
John wants to compare two means. His sample statistics were
A. 1
6.
B. 1
8.
C. 9
.
D. 8
.
We have at least 10 successes (x1 = 90, x2 = 110) and 10 failures (n1 - x1 = 110, n2 -
x2 = 90).
A. -
1.9
6
B. -
2.00
C. -
4.00
D. -
3.48
Combined pc = (90 + 110)/(200 + 200) = .50, so zcalc = (p1 - p2)/[pc(1 - pc)/n1 + pc(1 -
pc)/n2]1/2 = -2.000.
A. .
977
2
B. .
022
8
C. .
477
2
D. .
051
7
Combined pc = (90 + 110)/(200 + 200) = .50, so zcalc = (p1 - p2)/[pc(1 - pc)/n1 + pc(1 -
pc)/n2]1/2 = -2.000 and using Appendix C we get P(Z ≤ -2.000) = .0228.