Business Statistics Quiz Sample

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QUIZ SAMPLE OF BUSINESS STATISTIC'S
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QUIZ SAMPLE OF BUSINESS STATISTIC’S
Quiz Sample of Business Statistic
CHAPTER 1
QUIZ - INTRODUCTION AND DESCRIPTIVE STATISTICS
1. A distribution that is relatively flat and wide is said to be:

A. skewed to the right
B. symmetric
C. platykurtic
D. kurtosis
E. none of the above
2. The following are the grades a professor gave on the first test in a statistics class: 52, 90, 88, 61, 75,
82, 75, 83, 88, and 86. What was the median score on this test?
A. 82
B. 82.5
C. 78.5
D. 88
E. 75
3. A clothes store manager has sales data of trouser sizes for the last month's sales. Which measure of
central tendency should the manager use, if the manager is interested in the most sellable size?
A. mean
B. median
C. mode
D. standard deviation
E. interquartile range
4. The mean weight of three gemstones is 20 grams. The weights of two of the stones are 15 grams and 17
grams. What is the weight of the third stone?
A. 16 grams
B. 10 grams
C. 28 grams
D. 14 grams
E. not enough information to determine the weight of the third stone
RT 1
Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia
5. A market research company has collected data on the price of a particular brand of soap in several
different locations. The prices are as follows: $0.89, 0.95, 1.25, 1.36, 1.49, 1.65, 1.79, 1.89, 1.99.
What are the upper and lower quartiles of soap prices for this brand?
A. 1.72, 1.17
B. 1.84, 1.17
C. 1.72, 1.10
D. 2.21, 0.74
E. 1.84, 1.10
6. In a survey conducted among the employees of a local bank, it is found that the following are the number
of children each employee has: 1, 0, 2, 2, 0, 1, 0, 1, 4, 3, 6, 4, 2, 0, 1, and 3. What is the mean number
of children for these employees?
A. 2.5
B. 1.875
C. 1.5
D. 2.0
E. 6.0
7. Several friends go to a casino and do some gambling. The following are the profits each of these friends
make: $120, -$230, $670, -$1020, $250, -$430, and -$60. What is the average profit of this group?
A. $100
B. -$100
C. -$1020
D. $397
E. -$397
8. Find the variance of the following set of values: 2, 5, 8, 6, and 1.

A. 2.88
B. 4.4
C. 8.3
D. 7
E. 5
9. A measure of the degree of asymmetry of a frequency distribution is called?
RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia

2
A. kurtosis
B. skewness
C. coefficient of variation
D. standard deviation
E. ogive
10. The graph of a cumulative frequency distribution is called?

A. ogive
B. pie chart
C. frequency polygon
D. histogram
E. bar chart
11. What measure of central tendency is most sensitive to skewness?

A.Mode
B.Median
C.Mean
D.They are all about the same
E.Median and Mean
12.The average amount of time required to fill orders at a drive-up window has been observed to be 120
seconds, with a standard deviation of 10 seconds. Assuming that the required order-fill time follows a
symmetric, bell-shaped distribution, which of the following statements is correct regarding a random
sample of 1,000 observations?
A. We would expect to see approximately 680 of the order fill-times falling in the interval from
110 seconds to 120 seconds
B. We would expect to see approximately 955 of the order fill-times falling in the interval
from 100 seconds to 140 seconds
C. We would expect to see approximately 27 orders with required fill-times of less than
90 seconds
D. We would expect to see approximately 27 orders with required fill-times in excess of
150 seconds
E. All of the above are correct

3
CHAPTER 2 QUIZ - PROBABILITY
1. A box has 20 screws, three of which are known to be defective. What is the probability that the first
two screws taken out of the box are both defective?
A. 0.0158
B. 0.15
C. 0.0237
D. 0.0225
2. The probability of stock A rising is 0.3; and of stock B rising is 0.4. What is the probability that neither
of the stocks rise, assuming that these two stocks are independent?
A. 0.42
B. 0.12
C. 0.88
D. 0.44
E. 0.70
3. The probability of stock A rising is 0.3; and of stock B is 0.4. If stocks A and B are not independent,
and the probability of both stocks rising is 0.09, what is the probability that neither stock rises?
A. 0.61
B. 0.39
C. 0.12
D. 0.91
E. 0.03
4. A bag has five pearls in it, out of which one is artificial. If three pearls are taken out at random, what
is the probability that the artificial pearl is one of them?
4
A. 1/5
B. 2/5
C. 3/5
D. 4/5
5. Suppose that two events A and B are mutually exclusive. We know that the probability of A is 0.4
and the probability of B is 0.2. The probability that either A or B (or both) will occur is:
A. 0.08
B. 0.52
C. 0.60
D. 0
6. If the probability of A is 0.45 and the probability of the intersection of A and B is 0.15, then the
probability that B will occur given that A has occurred is:
A. 3.00
B. 1.00
C. 1/3
D. 1/9
E. 0.675
7. If P(A) = 0.2; P(B) = 0.6; and A and B are independent events, then the P(A U B) is:
5
A. P(A) + P(B)
B. P(A) x P(B)
C. P(A) + P(B) - P(A) x P(B)
D. zero
E. cannot be determined
8. If the probability of A is 0.5 and the probability of B is 0.2 and the probability of the union of A and
B is 0.7, then:
A. A and B are independent
B. A and B are mutually exclusive
C. A and B are dependent
D. A and B do have an intersection
E. impossible to determine
9. I shoot at a target five times and each time my probability of hitting is 0.40. Assuming that each shot
is independent, my probability of hitting the target at least once is:
A. 0.01024
B. 0.07776
C. 0.92224
D. a number very close to zero

6
10. The probability that I get job A is 0.45; the probability that I get job B is 0.60; and the probability
that I get both the jobs is 0.30. The probability that I get at least one job offer is:
A. 0.30
B. 0
C. 1
D. 0.55
E. 0.75
11. The probability that event A will occur is 0.7 and the probability that event B will occur is 0.7, and
the probability that both events will occur is 0.49. The two events are:
A. independent
B. mutually exclusive
C. dependent
D. disjoint
E. insufficient information to determine
12. Five of the 12 members of the board of directors of Giganticus, Inc., will be placed on a
subcommittee that will decide if John Goodhair, Chairman and CEO, will remain in his position.
How many subcommittees are possible if members are randomly chosen?
A. 792
B. 879
C. 972
D. 95040
E. None of the above
RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 7

CHAPTER 3 QUIZ - RANDOM VARIABLES
1. When two fair six-sided die are tossed, what is the expected value of the sum of the faces?
A. 6
B. 7
C. 5
D. 4
E. 12
2. When two fair six-sided die are tossed, what is the probability of getting a sum greater than 6?
A. 1/2
B. 1/6
C. 7/12
D. 13/18
E. 5/18
3. Twenty-five percent of all households in a town have broadband Internet access. In a random sample
of fifteen houses, what is the probability that exactly five have broadband Internet access?
A. 0.48
B. 0.75
C. 0.1651
5
D. (0.25)

4. A fair coin is tossed five times. What is the probability that it lands tails up at least once?
A. 1/32
B. 31/32
C. 4/5
4 1
D. (.5) (.5)
E. 5/32
5. In a uniform distribution, [1, 9], what is the probability that x will be greater than zero?
A. 1/2
B. 1/8
C. 0
D. 1
6. What is the probability that at least two cars will cross a given intersection in the next half hour, if
crossings are poisson-distributed with an average of four cars per half-hour?
A. 0.9084
B. 0.0916
C. 0.1465
D. 0.8535

7. The daily temperature in Kodiak, Alaska has a uniform distribution with a range from -20 degrees to
+10 degrees. What is the probability that the temperature is at least 5 degrees on any given day?
A. 5/6
B. 1/2
C. 1/6
D. 1/3
8. From a group of six men and four women, a committee of four is to be chosen. What is the probability
that this committee consists of exactly two men and two women?
A. 1/10
B. 5/7
C. 1/14
D. 3/7
9. Given the following probability distribution
The variance of the random variable is:

A. 2.5
B. 7.3
C. 1.05
D. 1.0246951
E. 4.8

10. The probability that no typing errors will occur on a page is 0.05. The probability that one error will
occur is 0.1; the probability of 2 errors is 0.1; 3 errors is 0.2; 4 errors is 0.2; 5 errors is 0.3; and the
probability of 6 errors is 0.05. The average number of errors per page is:
A. 1.5
B. 2.1
C. 3.5
D. 0.45
11. If the variance of random variable X is greater than the variance of random variable Y, then:
A. the mean of X must be greater than the mean of Y.
B. the median of X must be equal to the median of Y.
C. the probability that X is equal to Y is zero.
D. the standard deviation of X is greater than the standard deviation of Y.
E. all of the above are true.
12. A thoroughbred horse-racing facility has opened a drive-through wagering booth. Research has
shown that the number of visitors to this booth will be Poisson-distributed an average arrival rate
of 3 customers per hour. If a customer has just left this booth, what is the probability that one-half
hour will elapse before the next customer's arrival?
A. 0.2231
B. 0.4724
C. 0.5276
D. 0.7769

CHAPTER 4 QUIZ - THE NORMAL DISTRIBUTION
1. Find P(-0.5 < Z < 0.5).

A. 0.3830
B. 0.1915
C. 0.6515
D. 0.3085
2. Find the probability that a standard normal random variable has a value greater than -1.56.
A. 0.0332
B. 0.0594
C. 0.9406
D. 0.9668
3. Let X be a normally distributed random variable with mean 100 and standard deviation 20. Find two
values, a and b, symmetric about the mean, such that the probability of the random variable being
between them is 0.99.
A. 90.5, 105.9
B. 80.2, 119.8
C. 22, 78
D. 48.5, 151.5
E. 90.1, 109.9

4. A spark plug manufacturer believes that his plug lasts an average of 30,000 miles, with a standard
deviation of 2,500 miles. What is the probability that a given spark plug of this type will last 37,500
miles before replacement?
A. 0.0228
B. 0.0114
C. 0.0013
D. 0.0714
E. 0.0833
5. The contents of a particular bottle of shampoo marked as 150 ml are found to be 153 ml at an average,
with a standard deviation of 2.5 ml. What proportion of shampoo bottles contain less than the marked
quantity? Assume a normal distribution.
A. 0.2192
B. 0.1151
C. 0.4452
D. 0.0548
6. A grocery store has a mean accounts receivable of $264, with a standard deviation of $55. The
accounts receivable are normally distributed. What proportion of all accounts will be greater than
$275?
A. 0.2
B. 0.1
C. 0.4207
D. 0.0793
E. 0.0228

7. A grocery store has a mean accounts receivable of $264, with a standard deviation of $55. The
accounts receivable are approximately normally distributed. Find the value such that 45% of all the
accounts exceed this value. That is, find x such that: P(X > x) = 0.45.
A. $257.13
B. $354.48
C. $270.91
D. $309.00
8. The IQs of the employees of a company are normally distributed, with a mean of 127 and a standard
deviation of 11. What is the probability that the IQ of an employee selected at random will be between
120 and 130?
A. 0.2389
B. 0.3453
C. 0.1064
D. 0.1325
E. 0.4638
9. The GMAT scores of students in a college are normally distributed with a mean of 520 and a standard
deviation of 41. What proportion of students have a score higher than 600?
A. 0.9744
B. 0.2372
C. 0.4774
D. 0.0255

10. A normal random variable has a distribution that is:
A. always symmetric
B. never symmetric
C. sometimes symmetric
D. symmetric if the mean is positive
E. symmetric if the variance is negative
11. What is the probability that a normal random variable with mean 15 and standard deviation 5 will
have a value of exactly 25?
A. 0.0228
B. 0.0456
C. 0.9772
D. 0
E. 1
12. If X is a normal random variable with mean 15 and standard deviation 10, then the probability that
X will have a negative value is:
A. 0.0668
B. 0.432
C. 0.9332
D. 0.8664

CHAPTER 5 QUIZ -SAMPLING AND SAMPLING DISTRIBUTIONS
1. Following is a random sample of the heights of students in a class: 5'3", 5'9”, 6'1”, 5'8”, 5'11”, 6'5",
6'2”, 5'7”, 5'1”, 6', 5'6”, 5'9”. Compute a point estimate of the mean and the standard deviation of the
heights of the students.
A. 5'9.8", 2.9"
B. 5'10.3", 3.44"
C. 5'9.8", 2.8"
D. 5'10.3", 3.31"
2. A new shampoo is introduced in the market. The manufacturer interviews 25 different individuals for
their opinion. Eighteen individuals like the shampoo. Compute a point estimate for the proportion of
the population liking the shampoo.
A. 0.36
B. 0.72
C. 0.28
D. 0.56
E. 0.64
3. When sampling from a population with a standard deviation of 14, using a sample size of 144, what
is the probability that the sample mean will be at least 3 units away from the population mean?
A. 0.0051
B. 0.0257
C. 0.2157
D. 0.0102
E. 0.0514

4. A particular camera is sold at an average price of $190, with a standard deviation of $12. In a sample
of 50 randomly selected stores, what is the probability that the sample mean falls within $4 of the
population mean?
A. 0.9913
B. 0.9825
C. 0.9816
D. 0.4909
E. 0.9818
5. A bank has an average balance of $495 and a standard deviation of $102, in its checking accounts.
What is the probability that 36 randomly selected accounts have an average balance greater than $500?
A. 0.7718
B. 0.1141
C. 0.3859
D. 0.2282
E. 0.6141
6. The average advertising expenditure in the computer industry is found to be $15,000,000 annually,
with a standard deviation of $3,000,000. In a sample of 35 companies, what is the probability that the
sample mean will exceed 16.5 million?
A. 0.4756
B. 0.0244
C. 0.0015
D. 0.0456
E. 0.9756

7. Suppose that X is a normal random variable with mean 10 and standard deviation 4. Then the
probability that X will be greater than 12 is:
A. 0.1587
B. 0.3413
C. 0.3085
D. 0.4772
E. 0.1915
8. Suppose that X is a normal random variable with mean 17 and standard deviation 10. The probability
that the value of X will be between -2.6 and 36.6 is:
A. 0
B. 0.99
C. 1
D. 0.95
E. 0.90
9. The average telephone bill in a locality is $70, with a standard deviation of $40. In a sample of 50
randomly selected phone connections, what is the probability that the sample average will exceed
$75?
A. 0.3106
B. 0.8694
C. 0.1894
D. 0.4483

10. When the probability that an estimator is close to the parameter it estimates increases as the sample
size, n, increases, that estimator is said to be:
A. unbiased
B. biased
C. efficient
D. consistent
E. sufficient
11. A poll of 1,500 registered voters is taken. Of these, 600 say they will vote for candidate Smith.
Compute a point estimate for the proportion of the population who will vote for this candidate.
A. 0.60
B. 0.04
C. 0.40
D. 0.36
12. A manufacturer and one of its suppliers are engaged in negotiations regarding the inspection plan
for a component the supplier provides. Components will be shipped in very large batches, and
random samples of 50 will be drawn for inspection. The manufacturer needs components to have
an average length of 68 cm, with a standard deviation of 4 cm. Both manufacturer and supplier
have agreed that there should be no more than a 5% chance of rejecting a shipment that conforms
to this specification.
R-1 Ref 5-3
Suppose that a particular shipment actually has an average length of 69 cm, with a standard deviation
of 16 cm. If the decision rule is to reject the shipment if its sample average is in excess of 71 cm,
how likely is it that this shipment will be rejected?
A. 0.6700
B. 0.4483
C. 0.2266
D. 0.1894

CHAPTER 6 QUIZ - CONFIDENCE INTERVALS
1. A study was conducted to evaluate the stress level of senior business students at a particular college.
Forty students were selected at random from the senior business class, and their stress level was
monitored by attaching an electrode to the frontalis muscle (forehead). For the forty students, the mean
EMG (electromyogram) activity was found to be 35.8 microvolts. In addition, the standard deviation
of the EMG readings was found to be 2.5 microvolt. What would be the 99% confidence interval on
the true mean EMG activity for all seniors in the class?
A. [34.2796, 36.8704]
B. [34.7296, 36.7804]
C. [34.9672, 36.7840]
D. [34.7456, 36.0566]
E. [34.9834, 36.5095]
2. For n = 121, sample mean = 96, and a known population standard deviation  = 14, construct a 95%
confidence interval for the population mean.
A. [93.53, 98.48]
B. [93.51, 98.49]
C. [93.02, 98.98]
D. [93.06, 98.94]
E. [93.00, 98.95]
3. The mean of the sampling distribution of the sample mean is:

A. equal to the mean of the population.
B. an approximation of the mean of the population.
C. not a good estimate of the population mean.
D. equal to the population mean divided by n.
E. none of the above.

4. For n = 25, sample mean = 645, and s = 55, construct a 99% confidence interval for the population
mean.
A. [614.23, 675.77]
B. [617.59, 672.41]
C. [617.67, 672.34]
D. [613.43, 676.66]
E. [616.68, 673.33]
5. When the sample size increases, everything else remaining the same, the width of a confidence interval
for a population parameter will:
A. increase
B. decrease
C. remain unchanged
D. sometimes increase and sometimes decrease
E. impossible to tell
6. A telephone company wants to estimate the mean number of minutes people in a city spend talking
long distance with 95% confidence. From past records, an estimate of the standard deviation is 12
minutes. What is the minimum sample size required if the desired width of the confidence interval is
10 minutes?
A. 28
B. 11
C. 23
D. 19
E. 42

7. In a department store, it is found that out of a randomly selected 64 customers, 21 buy cards. Construct
a 95% confidence interval for the proportion of customers buying cards.
A. [0.3177, 0.3445]
B. [0.2316, 0.42471
C. [0.3214, 0.3349]
D. [0.2484, 0.5922]
E. [0.2131, 0.4432]
8. If the sample size is cut to 1/4 of its present size, all else being the same, the confidence interval will
become:
A. twice as wide
B. half as wide
C. four times as wide
D. will not change
E. not enough information to determine
9. Suppose that in sampling for the population proportion, it is found that 20 out of 100 items are
defective. Construct a 95% confidence interval for the proportion of defective items in the population.
A. [0.1216, 0.2784]
B. [0.0234, 0.3452]
C. [0.1212, 0.3341]
D. [0.175, 0.225]

10. The management of a local restaurant wants to estimate the average amount their customers spend
at the restaurant to within $0.50, with a 95% confidence. What is the minimum sample size required,
if the standard deviation is assumed to be $3.50?
A. 272
B. 189
C. 325
D. 196
11. A 95% confidence interval for ì is being formulated based on a sample of 16. What is the appropriate
value for t?
A. 1.746
B. 2.120
C. 2.131
D. 2.473
E. 2.490
12. A confidence interval for the population variance is being formulated, and a random sample of 35
observations yields a sample variance s2 = 2,120. What would interval limits for s2 be if a 95%
confidence interval was desired?
A. 1,483.1, 3,327.8
B. 1,387.0, 3,638.6
C. 1,308.4, 3,951.8
D. 1,227.5, 4,368.5
E. 1,167.5, 4,689.7

CHAPTER 7 QUIZ - HYPOTHESIS TESTING
1. The mean annual sales of a company in 36 of its sales offices over the country is $23,860,000, with a
standard deviation of $2,150,000. A manager quotes the annual sales of the company to be
$25,000,000. Compute the p-value to test whether the sample data provide evidence to reject the
executive's claim that the average annual sales are $25,000,000.
A. 0.2726
B. 0.3637
C. 0
D. 0.0007
E. 0.0014
2. If  = .01 for a two-tailed hypothesis test using the z test, the critical values are:
A.  1.90
B.  1.96
C.  2.00
D.  2.33
E.  2.58
3. A test for the population proportion, p, uses the t distribution:

A. if n < 30
B. if n > 30
C. if n  30
D. always
E. never

4. I would like to test the null hypothesis that the population mean is 50 versus the alternative that it is
not 50. My sample size is 6, and the sample mean is 38 with sample standard deviation of 16. At  =
0.05, I should:
A. strongly reject the null hypothesis
B. mildly reject the null hypothesis
C. fail to reject the null hypothesis
D. accept the alternative hypothesis
E. there is insufficient information to determine
5. Suppose that n = 100, and that we want to test whether the population mean is equal to 20 versus the
alternative that it is not equal to 20. The sample mean is found to be 18 and the sample standard
deviation is 10. Compute the p-value for this test.
A. 0.0228
B. 0.0456
C. 0.5532
D. 1.00
E. 0
6. The proportion of defective items is not allowed to be over 15%. A buyer wants to test whether the
proportion of defectives exceeds the allowable limit. The buyer takes a random sample of 100 items
and finds that 19 are defective. State the null and alternative hypotheses for this test.
A. H0: p  .15, H1: p > .15
B. H0: p < .15, H1: p > .15
C. H0: p = .15, H1: p * .15
D. H0: p < .15, H1: p > .15

7. The proportion of defective items is not allowed to be over 15%. A buyer wants to test whether the
proportion of defectives exceeds the allowable limit. The buyer takes a random sample of 100 items
and finds that 19 are defective. Find the p-value.
A. 0.3686
B. 0.1314
C. 0.2628
D. 0.8686
8. A manufacturer claims that his tires last at least 40,000 miles. A test on 25 tires reveals that the mean
life of a tire is 39,750 miles, with a standard deviation of 387 miles. Compute the test statistic.
A. t = -0.65
B. t = 3.23
C. t = -3.23
D. t = 0.65
9. The average income in a certain area is assumed to be approximately $25,000. A sample of size n =
36 gives a mean of $22,000 and a sample standard deviation of $7,000. State the null and alternative
hypotheses used to test whether the average income of this area is as assumed.
A. H0:  < 25,000, H1:   25,000
B. H0:  = 22,000, H1:   22,000
C. H0:   25,000, H1:  > 25,000
D. H0:   22,000, H1:  < 22,000
E. H0:  = 25,000, H1:   25,000

10. Given a p-value of 0.065, and using the customary  = 5%, the conclusion should be:
A. do not reject the null hypothesis
B. reject the null hypothesis
C. not enough information to determine
11. A random sample of 36 items gave a sample mean of 48 and a sample standard deviation of 12.
Compute the p-value to test whether or not the population mean is equal to 50.
A. 0.3413
B. -0.4772
C. 0.1587
D. 0.6826
E. 0.3174
12. Conduct a test to determine whether or not the population proportion of voters in favor of proposal
A is greater than 50%. In a random sample of 200 voters, 140 said that they were in favor of this
proposal. Compute the test statistic.
A. z = 6.17
B. z = 19.80
C. z = 5.66
D. z = 7.07

CHAPTER 8 QUIZ - THE COMPARISON OF TWO POPULATIONS
1. When testing for the equality of two population means, using  = 0.05 with n1 = 12 and n2 = 10, from
independent samples, so long as the population variances can be assumed equal, the critical values for
t are::
A. +2.704 and -2.704
B. +1.96 and -1.96
C. +2.086 and -2.086
D. +1.645 and -1.645
2. To test whether or not two population variances are equal, the appropriate distribution is:
A. z distribution
B. chi-square distribution
C. F distribution
D. t distribution with n1 + n2 - 2 degrees of freedom
3. An auto racing driver is given training and his timings on five different tracks are then measured.
The times before and after training are given below. The differences are taken as before after.
R-1 Ref 8-2

Compute the average difference, taking each difference as before after.
A. 20.4
B. 102
C. 25.5
D. 32.4
R-1 Ref 8-2
State the null hypothesis to test that the training was beneficial to this driver.
A. H0: D = 0
B. H0: D  0
C. H0: D > 0
D. H0: D  0

R-1 Ref 8-2
Was the training beneficial to this driver, at  = 0.01?
A. Yes
B. No
6. A major educational testing service is evaluating the performance of its new automated essay
grading system. Student essays are scanned into a computer-recognizable format and then
evaluated by the computer program. The software will not be moved into second-level testing
unless there is compelling evidence that it finds more grammatical errors than human graders.
A random sample of 100 essays evaluated by the software was compared to a different sample of
100 essays evaluated by humans. Results were as follows:
It is assumed that both software grading (population 1) and human grading (population 2) are
normally distributed, with equal population variances.
R-2 Ref 8-3

State the null and alternative hypotheses to test whether this software does pick out more errors.
A. H0: 1 - 2  0, H1: 1 -2 > 0
B. H0: 1 - 2 = 0, H1: 1 -2  0
C. H0: 1 - 2  0, H1: 1 -2 < 0
D. H0: 1 - 2 > 0, H1: 1 -2  0
R-2 Ref 8-3
Find the critical points to test whether this software does find more errors, at  = 0.05.
A. +1.96
B. +1.645
C. +1.282
D. +2.575
E. +2.33

R-2 Ref 8-3
Compute the p-value for the test of this hypothesis.
A. cannot compute from the information given
B. about one-half
C. very close to one
D. very close to zero
R-2 Ref 8-3

Construct a 90% confidence interval for the average difference between the number of errors picked
by the software and those found by human graders.
A. 2 ± (1.96) (0.9552)
B. 2 ± (2.33) (0.9552)
C. 2 ± (1.645) (0.9552)
D. 2 ± (1.28) (0.9552)
10. The average stock price of a particular company is $34 before a dividend is announced, for the last
nine months, with a standard deviation of $2. After the dividend is announced, the average stock
price is $37, with a standard deviation of $2.50 for the next nine months. State the null and alternative
hypotheses to test whether this data provides evidence that a dividend release raises the stock price.
Assume that population I is before the dividend release and population 2 is after.
A. H0: 1 - 2 > 0, H1: 1 - 2  0
B. H0: 1 - 2 = 0, H1: 1 - 2  0
C. H0: 1 - 2 < 0, H1: 1 - 2  0
D. H0: 1 - 2  0, H1: 1 - 2 < 0
E. H0: 1 - 2  0, H1: 1 - 2 > 0

11. Using two independent samples, two population means are compared to determine if a difference
exists. The number in the first sample is 15 and the number in the second sample is 12. How many
degrees of freedom are associated with the critical t-value?
A. 27
B. 26
C. 25
D. None of the above.
12. Before a researcher can proceed with hypothesis tests involving a potential difference in population
means, she hopes to first establish that the two population variances are equal. In a random sample
of 18 observations from each of populations 1 and 2, she observes sample variances of, respectively,
33 and 47. Given  = 0.10, the critical lower and upper values for F are, respectively:
A. FLOWER = 0.32, FUPPER = 3.10
B. FLOWER = 0.37, FUPPER = 2.67
C. FLOWER = 0.39, FUPPER = 2.60
D. FLOWER = 0.44, FUPPER = 2.27
E. FLOWER = 0.45, FUPPER = 2.22

CHAPTER 9 QUIZ - ANALYSIS OF VARIANCE
1. In ANOVA with 4 groups and a total sample size of 65, the computed F statistic is 2.53. In this case,
the p-value is:
A. exactly 0.05
B. much less than 0.05
C. much greater than 0.05
D. cannot tell - it depends on what the SSE is
2. Analysis of Variance (ANOVA) is a test for equality of:

A. variances
B. means
C. proportions
D. only two parameters
3. A company is interested in testing customer satisfaction with five department stores that it owns.
They are also interested in determining whether or not differences exist in the average consumer
satisfaction with the three main departments within each store: sportswear, formalwear and
businesswear. Fifteen groups of 60 randomly chosen consumers are assigned to each combination
cell. The results are analyzed with a two-way ANOVA, shown below.
R-1 Ref 9-5

Compute the mean square for the treatment, store.
A. 54.25
B. 144.50
C. 6.68
D. 43.4
R-1 Ref 9-5
Compute the F ratio for the interaction.
A. 6.68
B. 5.26
C. 17.795
D. 8.12

R-1 Ref 9-5
How many degrees of freedom does SSE have?
A. 15
B. 899
C. 900
D. 885
R-1 Ref 9-5

At  = 0.05, is there interaction?
A. yes
B. no
C. insufficient information to determine
D. some
7. The management of an organization wants to test to see whether the rate of turnover of employees
is the same in all the departments. Samples over the last year show the following as the number of
employees having left the company:
Production: 5, 6, 3, 4, 6, 6
Marketing: 3, 4, 4, 4, 3, 5
Finance: 3, 3, 3, 2, 4, 5
Accounting: 2, 3, 3, 5, 6, 4
The ANOVA table is shown below:
R-2 Ref 9-7

How many degrees of freedom are associated with the sum of squares for treatments?
A. 3
B. 4
C. 5
D. 23
Production: 5, 6, 3, 4, 6, 6
Marketing: 3, 4, 4, 4, 3, 5
Finance: 3, 3, 3, 2, 4, 5
Accounting: 2, 3, 3, 5, 6, 4
R-2 Ref 9-7
State the null hypothesis for this ANOVA.
A. H0: 1 - 2 - 3 - 4  0
B. H0: all of the population means are different
C. H0: at least one of the population means is different
D. H0: 1 = 2 = 3 = 4

Production: 5, 6, 3, 4, 6, 6
Marketing: 3, 4, 4, 4, 3, 5
Finance: 3, 3, 3, 2, 4, 5
Accounting: 2, 3, 3, 5, 6, 4
R-2 Ref 9-7
If the p-value for this ANOVA is 0.117, what is the conclusion, testing at  = 0.05?
A. reject the null hypothesis
B. do not reject the null hypothesis
C. not enough information to make a decision
D. at least one of the population means is significantly different
Production: 5, 6, 3, 4, 6, 6
Marketing: 3, 4, 4, 4, 3, 5
Finance: 3, 3, 3, 2, 4, 5
Accounting: 2, 3, 3, 5, 6, 4

R-2 Ref 9-7
Construct a 95% confidence interval on the population mean of the Finance department.
A. 3.333 ± (1.725)(1.033/6)
B. 3.333 ± (2.571)(1.033/2.449)
C. 3.333 ± (1.725)(1.033/2.449)
D. 3.333 ± (2.086)(1.033/2.449)
11. In an ANOVA, we find that the p-value is 0.003. We therefore conclude that:
A. there is no statistical evidence that any population mean is different from any other
B. no two population means are equal
C. no two variances are equal
D. the null hypothesis should be accepted
E. there is strong statistical evidence that not all the population means are equal
12. When all members of every block are randomly assigned to all treatments, the design is called:
A. repeated measures design
B. Tukey design
C. Latin square design
D. one-way ANOVA
E. randomized complete block design

CHAPTER 10 QUIZ - SIMPLE LINEAR REGRESSION AND

CORRELATION
1. The estimate for the true population slope, bl, is the ratio of which two values?
A. SSX /SSY
B. SSXY/SSX
C. SSX/SSXY
D. SSXY/SSX
2. When there is no linear correlation between two variables, what will the value of r be?
A. -1
B. +1
C. 0
D. a very small negative number
3. What is the slope of the line y = -3.4x - 2.5?

A. -2.5
B. 2.5
C. -3.4
D. 3.4

4. An insurance company wants to predict sales from the amount of money they spend on advertising.
Which would be the independent variable?
A. sales
B. advertising
C. insufficient information to decide
5. Observed errors, which represent information from the data which is not explained by the model, are
called?
A. marginal values
B. residuals
C. mean square errors
D. standard errors
6. An r value of 0.80 indicates:

A. no linear correlation at all
B. perfect linear correlation
C. correlation, but not linear
D. some linear correlation
E. negative linear correlation
7. An unbiased estimator for 2, the variance of the population regression errors, is:
A. MSE
B. SSE
C. s(bl)
D. s(b0)
E. SSxy

8. The measure of how well the regression line fits the data is the:
A. coefficient of determination
B. slope of the regression line
C. mean square error
D. standard error of the regression coefficient
E. s(b0)
9. The correlation coefficient, r, can take on any value within what range?
A. r  1
B. 0  r  1
C. -1  r
D. -1  r  1
E. any value that the slope of the regression equation can take on
10. My estimated regression line is Y = 17 + 4X. The intercept is equal to:

A. 17
B. 4
C. 21
D. 13
11. If two variables have a correlation coefficient of .30, what percentage of one variable is accounted
for by the other variable?
A. 30%
B. 70%
C. 10%
D. 9%

12. If you have 20 pairs of subjects what would be the degrees of freedom for a test of correlation
between the groups of scores?
A. 22
B. 21
C. 20
D. 19
E. 18

CHAPTER 11 QUIZ - MULTIPLE REGRESSION
1. In multiple regression analysis, R2 = 0.02, n = 2,000, k = 5 and F = 11.2.

A. multicollinearity is present
B. none of the five variables are statistically significant
C. this regression is excellent for prediction purposes

there is some evidence of a linear relationship between y and at least some of the x- variables,
D.
but the regression is extremely weak and useless for prediction purposes.
E. not enough information to make any conclusions
2. In a multiple regression analysis, MSE = 20, n = 54, k = 3, and SST(total) = 2,000. What is the R2 of
the regression?
A. 0.0
B. 0.01
C. 0.99
D. 1.00
E. 0.50
3. Suppose that in a multiple regression the F is significant, but none of the t-ratios are significant. This
means that:
A. multicollinearity may be present
B. autocorrelation may be present
C. the regression is good
D. a nonlinear model would be a better fit

4. How many degrees of freedom for error are associated with a multiple regression model with k
independent variables?
A. n - (k + 1)
B. n - k
C. n - 1
D. n - k + 1
5. The F ratio used to test for the existence of' a linear relationship between the dependent variable and
any independent variable is:
A. MSE/(n-(k + l))
B. MSR/MSE
C. MSR/MST
D. MSE/MSR
6. Consider the following multiple regression model, with n = 25:
y = 5 + 10x1 + 20x2.
R2 = 0.90 Sb1 = 3.2 sb2 = 5.5
Calculate the t-test statistic to test whether x1 contributes information to the prediction of y.
A. 0.32
B. 3.636
C. 3.125
D. 2.8125
E. 11.11

7. Correlation of the values of variables with values of the same variables lagged one or more time
periods back is called:
A. multicollinearity
B. a transformation
C. autocorrelation
D. variance inflation
E. interaction
8. Dummy variables are used when:

A. qualitative variables are involved in the model
B. quantitative variables are involved in the model
C. doing residual analysis
D. making transformations of quantitative variables
9. What does a correlation matrix show?

A. Residuals.
B. Regression coefficients.
C. The correlation coefficients between all of the independent variables.
D. Both A and B, above.
10. When independent variables are correlated, you have.

A. Multicollinearilty.
B. Homoscedasticity.
C. Autocorrelation.
D. Residuals.

11. When successive residuals are correlated you have.

A. Multicollinearilty.
B. Homoscedasticity.
C. Autocorrelation.
D. Residuals.
12. As more independent variables are added to a multiple regression model, ___________ will increase;
this is not always so with ___________, which will only increase if the additional variables add
substantial explanatory power to the model.
2 2
A. R ; adjusted R
2 2
B. adjusted R ; R
2
C. R ; the coefficient of partial determination
2
D. adjusted R ; the coefficient of multiple determination
2
E. the standard error of the estimate; R

CHAPTER 12 QUIZ
TIME SERIES, FORECASTING, AND INDEX NUMBERS
1. The index number for the price of gasoline in 2018 was 142 and in 2019, it was 148.5, on a base year
of 2010. What is the percent increase in price of gasoline from 2018 to 2019 ?
A. 4.377%
B. 4.577%
C. 95.62%
D. 6.5%
2. A pattern of variation of a time series that repeats every year is called:

A. Cyclical
B. Seasonal
C. Trend
D. Secular
3. Which of the following is not an example of seasonal variation?

A. sales of snow blowers
B. plant and flower sales
C. use of electricity
D. sales of suntan oil
E. annual earnings for a large corporation

4. Calculate a three-day moving average for the price of stock, for Tuesday through Thursday.
A. 53.50
B. 54.10
C. 90.17
D. 54.00
5. The data given below are quarterly sales for a large computer firm, in $100,000s.
Compute the four-quarter moving average for the first four quarters and center it at the third quarter.
A. 114.25
B. 119.25
C. 116.75
D. 119.50

6. The following are stock prices for a given group of stocks on the Dow Jones. Compute the forecast
for day 3 using the exponential smoothing method, with w = .4.
A. 800
B. 810
C. 814
D. 815
7. The following are median sales prices of existing single family homes (in thousands of dollars):
Using 2000 as the base year, what is the index of home prices in 2003?
A. 118.9
B. 111.6
C. 104.48
D. 100.00

8. The following data is the weekly average exchange rate for the dollar against the German Mark.
Compute the simple index number for week 6, using week 1 as the base week.
A. 93.33
B. 107.14
C. 110
D. 254.1
9. The following is the quarterly payroll of a company (in thousands of dollars). Construct an exponential
smoothing model, using w = .7, and predict the payroll for the next quarter.
95, 94, 92, 88, 83, 93

A. 93
B. 90
C. 90.58
D. 90.95
10. The average credit bill of the customers of a particular organization have been as follows over the
last few years:

Estimate a linear trend line for this data. Use this trend line to predict credit balances of customers
for the year 2004.
A. 698.22
B. 401.89
C. 320.08
D. 721.97
11. The Consumer Price Index is an example of which type of index?

A. simple
B. composite
C. multiple
D. regression
12. Demand for seats in a university is at its highest in the fall; demand also tends to grow and fall off
in 25-year waves. In time-series forecasting, the former demand characteristic would be called
__________ and the latter would be called __________.
A. Seasonality: cyclicality
B. Cyclicality; seasonality
C. Variability: randomality
D. Randomality; seasonality
E. Seasonality; variability

CHAPTER 12 QUIZ
TIME SERIES, FORECASTING, AND INDEX NUMBERS
1. The index number for the price of gasoline in 2002 was 142 and in 2003, it was 148.5, on a base year
of 1994. What is the percent increase in price of gasoline from 2002 to 2003?
A. 4.377%
B. 4.577%
C. 95.62%
D. 6.5%
2. A pattern of variation of a time series that repeats every year is called:

A. Cyclical
B. Seasonal
C. Trend
D. Secular
3. Which of the following is not an example of seasonal variation?

A. sales of snow blowers
B. plant and flower sales
C. use of electricity
D. sales of suntan oil
E. annual earnings for a large corporation

4. Calculate a three-day moving average for the price of stock, for Tuesday through Thursday.
A. 53.50
B. 54.10
C. 90.17
D. 54.00
5. The data given below are quarterly sales for a large computer firm, in $100,000s.
Compute the four-quarter moving average for the first four quarters and center it at the third quarter.
A. 114.25
B. 119.25
C. 116.75
D. 119.50

6. The following are stock prices for a given group of stocks on the Dow Jones. Compute the forecast
for day 3 using the exponential smoothing method, with w = .4.
A. 800
B. 810
C. 814
D. 815
7. The following are median sales prices of existing single family homes (in thousands of dollars):
Using 2000 as the base year, what is the index of home prices in 2003?
A. 118.9
B. 111.6
C. 104.48
D. 100.00

8. The following data is the weekly average exchange rate for the dollar against the German Mark.
Compute the simple index number for week 6, using week 1 as the base week.
A. 93.33
B. 107.14
C. 110
D. 254.1
9. The following is the quarterly payroll of a company (in thousands of dollars). Construct an
exponential smoothing model, using w = .7, and predict the payroll for the next quarter.
95, 94, 92, 88, 83, 93

A. 93
B. 90
C. 90.58
D. 90.95
10. The average credit bill of the customers of a particular organization have been as follows over the
last few years:

Estimate a linear trend line for this data. Use this trend line to predict credit balances of customers
for the year 2004.
A. 698.22
B. 401.89
C. 320.08
D. 721.97
11. The Consumer Price Index is an example of which type of index?

A. simple
B. composite
C. multiple
D. regression
12. Demand for seats in a university is at its highest in the fall; demand also tends to grow and fall off
in 25-year waves. In time-series forecasting, the former demand characteristic would be called
__________ and the latter would be called __________.
A. Seasonality: cyclicality
B. Cyclicality; seasonality
C. Variability: randomality
D. Randomality; seasonality
E. Seasonality; variability

CHAPTER 13 QUIZ
QUALITY CONTROL AND IMPROVEMENT
1. The chart which involves the number of defects per item, is called the _________ chart.
A. x-bar
B. x
C. R
D. s
E. c
2. The statistician who invented the control chart for use in industrial quality control was:
A. Deming
B. Taguchi
C. Pareto
D. Shewhart
3. The chart which aggregates poor quality outcomes to show management which are the most important
problems is the:
A. s chart
B. Pareto chart
C. R chart
D. x-bar chart
E. Taguchi chart

4. A manufacturer of light bulbs randomly samples 40 bulbs at the end of each shift to test for defective
bulbs. The number of defectives in 12 shifts is as follows: 3, 5, 2, 0, 4, 5, 1, 2, 8, 12, 0, and 2.
R-1 Ref 13-2
Compute p-bar for the p chart.
A. 44
B. 3.75
C. 0.0917
D. 1.125
R-1 Ref 13-2
Compute the standard error of p-bar.
A. 0.0456
B. 0.0841
C. 0.09375
D. 0.291

R-1 Ref 13-2
Based on the p chart, is this process in control?
A. no, two sample proportions are outside the limits
B. no, since all but one sample proportion are outside the limits
C. no, exactly one sample proportion is outside the limits
D. yes, it is in control
E. insufficient information to determine
7. Which control chart makes use of the Poisson distribution?

A. x chart
B. x-bar chart
C. s chart
D. R chart
E. c chart
8. The following are the number of flaws in bolts of material for use in industrial upholstering:
4, 6, 7, 8, 7, 5, 10, 15, 7, 6, 8, 5, 6, 8, 10, 4, 8, 5, 4, 6, 4, 6, 7, 5, and 6

R-2 Ref 13-3

Compute the value of c used to estimate the center-line in a c chart for this data.
A. 25
B. 127
C. 5.08
D. 6.7
4, 6, 7, 8, 7, 5, 10, 15, 7, 6, 8, 5, 6, 8, 10, 4, 8, 5, 4, 6, 4, 6, 7, 5, and 6

R-2 Ref 13-3
Compute the UCL and LCL respectively.
A. 13 and 0
B. 20 and 15
C. 14 and 0
D. insufficient information to determine
4, 6, 7, 8, 7, 5, 10, 15, 7, 6, 8, 5, 6, 8, 10, 4, 8, 5, 4, 6, 4, 6, 7, 5, and 6

R-2 Ref 13-3

Based on the c chart, is this process in control?
A. it may be out of control, based on one observation outside the limits
B. it appears to be in control
C. several observations are outside the limits
D. insufficient information to determine
11. The purpose of control charts is to:

A. estimate the proportion of output that is acceptable
B. weed out defective items
C. determine if the output is within tolerances/specifications
D. distinguish between random variation and non-random variation in the process
E. none of these
12. In statistical process control, p-charts are used to signal assignable variation that is affecting the
___________:
A. sample size
B. number of defects in a typical unit of output
C. proportion of defective units being produced
D. useful life period of units produced
E. proportion of variability that can be attributed to random factors

CHAPTER 15 QUIZ
BAYESIAN STATISTICS AND DECISION ANALYSIS
1. The de Finetti game assesses:

A. personal probabilities
B. objective probabilities
C. gambling probabilities
D. game theory
2. The utility function of a risk-averse person is:

A. concave
B. convex
C. straight line
D. s-shaped
3. Suppose that you are sampling from a normal distribution with standard deviation 5. The population
mean is assumed to be a random variable with mean 10 and standard deviation 3. A sample of size
100 gives a sample mean of 8. The posterior normal distribution of the population mean has a mean
equal to:
A. 8.05
B. 8.01
C. 9.95
D. 9.99

4. The basis of Bayesian analysis is the use of:
A. nonparametric statistics
B. prior information
C. very subjective probabilities
D. classical statistics
E. the binomial and the normal distributions
5. A manager is trying to choose between options A, B & C. The value of each option depends on the
state of nature that occurs well after the choice has been made. The likelihood of the two possible
states of nature and the payoffs for the individual options are in the following table:
R-1 Ref 15-5
Suppose this manager is so pessimistic that he always chooses the option whose worst-case scenario
is most attractive. In this situation, how much does the manager's pessimism cost him (in terms of
expected value)?
If the manager follows his usual approach, in this case he will pass up $7,200 in expected
A.
monetary value
B.
monetary value
C.
monetary value
D.
monetary value
Nothing, because his decision-making approach would, in this case at least, lead to the optimal
E.
choice (in terms of expected monetary value)

6. A manager is trying to choose between options A, B & C. The value of each option depends on the
state of nature that occurs well after the choice has been made. The likelihood of the two possible
states of nature and the payoffs for the individual options are in the following table:
R-1 Ref 15-5
In this situation, perfect information would be worth _____________ to this manager.
A. $ 50,000
B. $ 46,000
C. $ 29,200
D. $ 22,000
E. $ 16,800
7. A fast-food chain's internal process improvement consultant believes that the use of his techniques
will reduce average response time (assume a normal distribution) to 80 seconds, with a standard
deviation of 30 seconds. A local franchise owner has implemented these techniques and taken a
random sample of 20 transactions. The average response time for the sampled transactions was 95
seconds, with a standard deviation of 10 seconds.
R-2 Ref 15-7

The posterior normal distribution for the mean response time after the implementation of these
techniques has a mean equal to:
A. 94.84
B. 94.92
C. 80.08
D. 84.66
E. 90.34
R-2 Ref 15-7
The posterior normal distribution for the mean response time after the implementation of these
techniques has a standard deviation equal to:
A. 6.88
B. 5.57
C. 4.97
D. 3.14
E. 2.23
R-2 Ref 15-7

The 95% HPD credible set for  in this situation is:
A. [77.34, 97.57]
B. [73.74, 95.57]
C. [85.17, 104.66]
D. [90.55, 99.29]
E. [80.51, 109.43]
10. An occasional casino visitor has decided to switch games. In the past this visitor has played a game
in which he has a 48% of winning $1 and a 52% chance of losing $1. If this visitor switches to a
game that offers him only a 45% chance of winning $1, with a 55% chance of losing $1, this visitor
is becoming more ____________ since his utility curve is increasingly _____________.
A. Risk-seeking; concave
B. Risk-avoiding; concave
C. Risk-seeking; convex
D. Risk-avoiding; convex
E. Risk-neutral; linear
11. A defendant in a lawsuit is trying to determine whether or not to offer a settlement to a plaintiff,
and if a settlement is offered, how large a settlement to offer. An extensive review of similar cases
leads the defendant to conclude that if the lawsuit goes to trial, the plaintiff has a probability of
winning of 0.6. The typical jury award in such cases is $1,500,000. The defendant's legal team
estimates that a settlement offer of $500,000 has a 0.3 probability of being accepted. If the
settlement offer is rejected, the defendant could then choose to offer $800,000 – which would
certainly be accepted – or go to trial. A final option under consideration is to simply offer the
plaintiff $750,000 up front; the defendant's legal team estimates that such a large initial offer would
certainly be accepted.
R-3 Ref 15-8

What is the expected cost to the defendant of taking this lawsuit to trial?
A. $ 3,000,000
B. $ 1,500,000
C. $ 900,000
D. $ 800,000
E. $ 750,000
12. A defendant in a lawsuit is trying to determine whether or not to offer a settlement to a plaintiff,
and if a settlement is offered, how large a settlement to offer. An extensive review of similar cases
leads the defendant to conclude that if the lawsuit goes to trial, the plaintiff has a probability of
winning of 0.6. The typical jury award in such cases is $1,500,000. The defendant's legal team
estimates that a settlement offer of $500,000 has a 0.3 probability of being accepted. If the
settlement offer is rejected, the defendant could then choose to offer $800,000 – which would
certainly be accepted – or go to trial. A final option under consideration is to simply offer the
plaintiff $750,000 up front; the defendant's legal team estimates that such a large initial offer would
certainly be accepted.
R-3 Ref 15-8
What is the optimal approach for this situation (from the defendant's perspective)?
A. Make an initial offer of $750,000

Make an initial offer of $500,000, and if this offer is rejected, make a subsequent settlement
B.
offer of $800,000
C. Make an initial offer of $500,000, and if this offer is rejected, take the lawsuit to trial
D. Make no settlement offer and take this lawsuit to trial
E. Either A or C are optimal approaches

CHAPTER 16 QUIZ - SAMPLING METHODS
1. In stratified random sampling with strata weights 0.4, 0.1, and 0.5, and standard deviations 10, 15,
and 20, and sample sizes 100, 50, and 100, the variance of the sample mean is?
A. 0
B. 1,000
C. 1.205
D. 3.538
2. The Neyman allocation considers:

A. strata weights
B. strata standard deviations
C. strata sampling costs
D. all of the above
3. A market analyst is interested in finding the mean profit of all restaurants in a particular region. The
restaurants can be divided into three categories: fast food, take-out order, and formal restaurants.
Random samples of 20 restaurants from each group are selected and the mean profits are found to
be $120,000, $87,000, and $167,000, with variance (in thousands) of 100,000, 144,000, and 306,250,
respectively.
R-1 A

Compute the stratified estimate of the mean.
A. 123,667
B. 6,183
C. 18,550
D. 183,417
4. A market analyst is interested in finding the mean profit of all restaurants in a particular region. The
restaurants can be divided into three categories: fast food, take-out order, and formal restaurants.
Random samples of 20 restaurants from each group are selected and the mean profits are found to
be $120,000, $87,000, and $167,000, with variance (in thousands) of 100,000, 144,000, and 306,250,
respectively.
R-1 A
Compute the standard error of the stratified estimate of the mean.
A. . 183,417
B. 61,139
C. 41,013
D. 105,895
5. An employment agency wants to estimate the mean income of recent graduates from a business
college who major in Marketing, Finance, Accounting, and Economics. The number of graduates each
year from each strata is as follows: Marketing-35; Finance-55; Accounting-40; and Economics-25. A
random sample of 62 graduates is selected, with proportional allocation. The sample results are as
follows:

Give a stratified estimate of the mean income of recent graduates of that college.
A. 68,467
B. 27,387
C. 4,244,985
D. 25,506
6. A survey is conducted to find the proportion of qualified electricians out of workers who were doing
electrical work and were qualified electricians employed in steel plants over the northeastern region.
Five nearby steel plants from a total of 32 in the region are selected.
Estimate the proportion of electricians among the electrical workers in the steel industry.
A. 21.6%
B. 25.75%
C. 21.91%
D. 27.82%

7. To find the number of people traveling per car in the evening between 5:00 pm and 6:00 pm on a
particular highway, every fifteenth car in a lane is sampled. The first car to be sampled is chosen at
a random instant in time. The following data is obtained:
2, 1, 1, 3, 1, 1, 2, 4, 1, 2, 1, 3, 2, 1, 2, 1, 1, 1, 3, 1, 1, 4, 1, 1, 1
Assume that 600 cars pass through that lane during the time.
R-2 B
Compute the systematic sampling estimator of the population mean.
A. 0.0028
B. 0.07
C. 2.8
D. 16.8
8. Compute the estimated variance of the systematic sampling estimate of the population mean.
A. 0.0379
B. 0.1384
C. 0.189
D. 0.372
9. A university has 5,000 students, belonging to the following classes: 1,500 are freshmen, 1,200 are
sophomores, 1,400 are juniors, and 900 are seniors. The university administration wants to get an
estimate of all the students' views on a proposal to help alleviate the parking problem on campus.
Suppose that a sample of 100 students is chosen. What is the required sample size for the freshman
stratum under proportional allocation?
A. 3
B. 33.3
C. 30
D. 50

CHAPTER 17 QUIZ - MULTIVARIATE ANALYSIS
1. Most multivariate statistics routines use the normal distribution assumption.

A. True
B. False
2. In factor analysis, the factors are always orthogonal.

A. True
B. False
3. The hit ratio is a measure of how good our discriminant analysis is.
A. True
B. False
4. Multivariate methods involve simultaneous analysis of data on several variables.

A. True
B. False
5. VARIMAX rotation is used in:

A. MANOVA
B. discriminant analysis
C. factor analysis
D. all of the above

6. Wilk's lambda is used in:

A. multivariate analysis of proportions
B. multivariate analysis of variance
C. multiple regression
D. all of the above
7. A territorial map is useful in:

A. MANOVA
B. factor analysis
C. discriminant analysis
D. multiple regression
8. Assumptions necessary to use MANOVA are:

A. the r populations have equal variance-covariance matrices
B. the r populations all have equal means
C. the r populations have multivariate distributions
D. only a and c
E. a, b, and c

9. The technique that is used to develop an equation for predicting the value of a qualitative dependent
variable based on a set of independent variables is called?
A. MANCOVA
B. MANOVA
C. multivariate analysis
D. discriminant analysis
10. The number of correctly classified cases in discriminant analysis is given by the:
A. cutting score
B. F statistic
C. degrees of freedom
D. hit rate
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QUIZ SAMPLE OF BUSINESS STATISTIC'S

Chapter · January 2020

Pariwisata Berkelanjutan View project

The user has requested enhancement of the downloaded file.

1. A distribution that is relatively flat and wide is said to be:

8. Find the variance of the following set of values: 2, 5, 8, 6, and 1.

9. A measure of the degree of asymmetry of a frequency distribution is called?

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia

10. The graph of a cumulative frequency distribution is called?

11. What measure of central tendency is most sensitive to skewness?

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia

E. none of the above

E. none of the above

E. none of the above

C. P(A) + P(B) - P(A) x P(B)

B. A and B are mutually exclusive

C. A and B are dependent

D. A and B do have an intersection

D. a number very close to zero

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia

E. insufficient information to determine

E. None of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 7

CHAPTER 3 QUIZ - RANDOM VARIABLES

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 8

E. none of the above

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 9

E. none of the above

E. none of the above

9. Given the following probability distribution

The variance of the random variable is:

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 10

E. none of the above

B. the median of X must be equal to the median of Y.

C. the probability that X is equal to Y is zero.

D. the standard deviation of X is greater than the standard deviation of Y.

E. all of the above are true.

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 11

CHAPTER 4 QUIZ - THE NORMAL DISTRIBUTION

1. Find P(-0.5 < Z < 0.5).

E. none of the above

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 12

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 13

E. none of the above

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 14

D. symmetric if the mean is positive

E. symmetric if the variance is negative

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 15

CHAPTER 5 QUIZ -SAMPLING AND SAMPLING DISTRIBUTIONS

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 16

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 17

E. none of the above

RT Dr. Rusdin Tahir, CIQaR., CIQnR University of Padjadjaran, Indonesia 18