Kuwait University

College of Business Administration

Department of Quantitative Methods and information System

STATISTICS 120
Chapter # 1

T.A. DALAl ALODAH

T.A. Narges Akbar
T.A. WAAD AKRA

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Definitions:

Statistics :
It is a Science of collecting, organizing, presenting, analyzing, and interpreting
data, the purpose of this field of knowledge is to help managers and decision
makers to understand the environment in order to construct better decision making
in specific area.

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 Types of Statistics:

Descriptive Statistics Inferential Statistics

Methods for organizing ,displaying Methods that use sample results

and describing data to help making decisions or
by using predictions about population
graphs, tables
and summary measures

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• Population: All (total-universe-entire-……) elements ,items, or objects are being studied.

• Sample: A portion of the population selected for study (select-choose-group-specific number-…..)

• Census: A study that includes every member of the population.

• Sample survey: A study of collecting information from a portion of the population (from a sample) .

• Cross Section data : Data collected on different elements at the same point in time or for the same period of time.

• Time Series Data : Data collected on the same element for the same variable at different points in time or for different
periods of time:

• Parameter : A summary measure (number calculated) using all elements of the population that
describe some aspects of the population.

• Statistic: A summary measure (number calculated) using the sample elements that describe some
aspects of the sample (is a descriptive measure of the the sample)

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 Study ( Examination-Understanding-…. )
Population Census
All – Total - ………..
Elements of interest.
Summry Measure ( Calculated Number )
Parameter

Sample
Study (Examination-Understanding-…. )
Portion –Subset - part - ….. Sample Survey
of the population.
Summry Measure ( Calculated Number )
( group – choose – select
– specific number -…..)
Statistic

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 Source of data

(1)Direct data
• Population
• Sample

(2) In direct data

• Previous studies
• Researches
• Magazines
• Journals
• Official publications

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 Types of Variables

Qualitative Or
Quantitative categorical
Variables

Discrete Continuous Nominal Ordinal

Variables Variables

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Note:

We can also divide the Quantitative Data to:

- Ratio

- Interval

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 Questions
1) The process of using sample statistics to draw conclusions about true population parameters is called
A) sampling. B) statistical inference.

C) the scientific method. D) descriptive statistics.

2) The goal of ---------- is to focus on summarizing and explaining a set of data

A) Inferential statistics B) Descriptive statistics

C) None of the above D) All of the above

3) Those methods involving the collection, presentation, and characterization of a set of data in order to
describe the various features of that set of data are called.
A) the scientific method B) statistical inference.

C) descriptive statistics D) sampling.

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4) A population in statistics means a collection of all
a. men and women

b. subjects or objects of interest

c. people living in a country

5) A sample in statistics means a portion of the

a. people selected from the population of a country

b. people selected from the population of an area

C. population of interest

6) The universe or "totality of items or things" under consideration is called

A) a parameter. B) a statistic.

C) a sample. D) a population.
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7) A summary measure that is computed to describe a characteristic of an entire
population is called
A) the scientific method. B) a statistic.

C) a parameter. D) a census.

8) Which of the following is most likely a population as opposed to a sample?

A) Respondents to a newspaper survey.

B) Every third person to arrive at the bank.

C) The first 5 students completing an assignment.

D) Registered voters in a county.

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 9) A researcher at a University wishes to estimate the textbook costs of first-year students. To
do so, she recorded the textbook cost of 250 first-year students and found that their average textbook
cost was $300 per semester.

1- The population of interest is

A) The 250 students that were recorded. B) All University students

C) All first-year students. D) All college students.

2- The sample in the study is

A) All first-year students. B) All the university students.

C) The 250 students that were recorded. D) All college students.

3- The variable of interest is

A) The year in school of the university students.

B) The age of all university students.

C) The cost of incidental expenses of all university students. 12

D) The textbook cost of first-year students.
10) In a study to determine the average number of cows per farm in Kuwait, a sample, of 50
farms was randomly selected from Wafra farms. The number, of cows in each farm in the sample
was recorded. The total number of cows in all the farms in the sample was 225 cows. Answer the
following-four questions:
1. The population is

a) The number of cows in Wafra. b) All the cows in Wafra.

c) All farms in Wafra. d) All farms in Kuwait .

e) The number of cows per farm in Wafra.

2. The sample in the problem above is

a) 225 cows. b) 225 cows in the 50 selected farms.

c) The number of cows per farm. d) The 50 farms selected at random.

e) The average number of cows per farm in Wafra

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3. The purpose of the survey is to measure

a) The number of cows in Kuwait. b) The number of cows in Wafra.

c) The average number of cows in Wafra. d) The average number of cows in Kuwait.

e) None of the above.

4. The variable is ……………………………

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11) In order to estimate the number of cars owned per household in Kuwait, 30 house-holds were randomly
selected from the suburbs of Kaifan and Jabriah. The numbers of cars owned by those household was
determined. The following table:
Number of cars owned Number of houses

1 6
2 10
3 6
4 5
5 3

1- The population of our study is

a) All cars of the households of Kuwait. b) The households of Kuwait.

c) The households of Kaifan and Jabriah. d) All cars of the households of Kaifan and Jabriah

e) The people of Kuwait.

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2- The sample of our study is

a) All cars of the households of Kuwait. b) The households of Kuwait.

c) The households of Kaifan and Jabriah. d) All cars of the households of Kaifan and Jabriah

e) The people of Jabriah and kaifan.

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12) To determine the percentage of school-age children who will join school this year. 300 households were
selected at random in a small town revealed that 20% had children in school age. Answer the following:

1. What is the population of interest?

(a) All children the town (b) All households in the town

(c) All children in households. (d) None of the above

2. What is the sample ?

(a) The 300 students selected at random. (b) The 300 children selected at random.

(c) The 300 households selected at random. (d) None of the above.

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3. What is the parameter of interest?

(a) Percentage of school age children in the sample

(b) Percentage of households in the town

(c) Percentage of school age children in the town

(d) None of the above

4. How many students in the sample were found to in school-age?

(a) 30 (b) 300

(c) 60 (d) none of the above

***What does the calculated 20% present?

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13) Indicate which of the following refer to a population and which to a sample

A group of 5 employees selected from a company

Total items produced on a machine

Yearly expenditure on clothes for 50 persons

Number of houses sold by all 10 employees of an

agency

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 Explanation

1)Continuous Random viable:

Person Weights variable

Member or element Nora 50

Measurement
Fatma 60.2

Layla 67.8
Data set

(Note: number of elements = 3 Number of measurement = 3)

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 2) Discrete random variable:

Person Number Of Children Variable

Nora. 2

Member or element Fatma. 1 Observation

Layla 0 Data set

(Note: number of elements = 3 Number of observations = 3)

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14) The following data give the population size for four cities

City Population size

A 12000

B 13000

C 5000

D 4000

The variable of interest and the number of observations are, respectively,

a. City, 4 b. Population size, 4
c. Population size, 34000. d. City, 34000.
e. None of the above.

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15) In a study to determine the percentage of houses in violation to building codes in South Surra suburbs, a
sample of 30 houses was randomly selected from Al-Salam suburb and another sample of 45 houses was
randomly selected from Al-Zahra' suburb.
The number of houses with building violations in both samples was found to be 16 houses in Al-Salam and
29 houses in Al-Zahra'. The mayor announced that 60% of the houses in South Surra are in violation to building
codes.

Circle the correct answer in the following:

1) The population of the study is

a) The number of houses in South Surra. b) All the building violations in South Surra.

c) The number of building violation in South Surra. d) All houses of South Surra.

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2) The sample in the study is

a) All the houses in South Surra. b)All the houses in Al-Salam and Al-Zahra' suburbs.

c) The 45 houses with building violations. d)75 houses selected from Al-Salam and Al-Zahra'.

3) The variable of interest within each element is

a) The number of violations to building codes. b) Whether or not it is in violation to building codes.

c) The number of violations per element. d) The number of houses in violation.

3*) the variable of interest is (d)

4) The announcement of the mayor is an example of

a) Descriptive statistics. b) An observation.

c) Qualitative data. d) Inferential statistics.

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16) For each of the following variables indicate by (X) whether it is quantitative or qualitative and specify
the measurements scale that is employed when taking the measurements.

Quantitative Qualitative
VARIABLE
Discrete Continuous Nominal Ordinal

1) Gender (sex)

2) Age

3) Number children

4) Nationality

5) Number of Mistakes in a financial statement

6) Students grades (excellent, very good).

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17) Dar Al-funoon Music Center sells (CDs, tapes, records) to its customers. A survey conducted asked new
customers the following questions
Ql - How many Albums (CDs, tapes, records) have you bought in the last 12 months?

Q2 - Are you currently a member of a musical club?

Q3 - What is your age?

Q4 - Including your self, how many people are in your household?

Q5 - What kind of music are you interested in buying (15 categories were included)?

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18) Indicate which of the following variables are quantitative and which are qualitative. Classify the
quantitative variables as discrete or continuous.

a.Women's favorite TV programs

b.Salaries of football players

c.Number of pets owned by families

d.Total claims paid by 15 auto insurance companies in 2002

e. Brand of coffee

f. Number of T.V. sets owned by families

g. weekly earnings of employees.

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 Qualitative Quantitative
19) Variables
Nominal Ordinal Discrete Continues

Religion

Years of Experience

Race

Number of Children

Nationality

Age

Grades (A,B,……………)

Scores

Height 28
Number of correct answer in an Exam
20) Answer True (T), or False (F)

1. A population is a subset of measurements taken from a large group (T, F).

2. Comparing the high temperature in Alaska this month, with the high temperature a year ago, is an
example of using the interval scale of measurement.(T, F)

3. Classifying students in a statistics course by their home town is an example of ordinal scale (T, F).

4. The study of method for data summarization is referred to as descriptive statistics (T, F).
5. The speed of an airplane in miles per hour is ordinal data (T, F).
6. A football player's number is nominal data (T, F).
7. Room numbers in a building are examples of quantitative data (T, F).

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8. The place a person finishes in a gulf tournament (first, second, third etc) is an example of ordinal
data (T, F).
9. Ordinal and ratio data are classified as quantitative data (T, F).
10. An example of a qualitative variable is the mileage of a car. (T, F)
11. Statistical inference is the science of using a sample of measurements to make generalization about the characteristic of a
population of interest. ( T, F)
12. Number of persons in a family is an example of continuous variables. ( T, F)
13. Marital status of people is an example of discrete variables. . ( T, F)
14. The number of individuals in a family is a discrete random variable . ( T, F)

15. A sample is the complete set of items in which a researcher is interested. ( T, F)

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22) Which of the following is a quantitative variable?
a. The Make of a TV

b. A person's gender

c. Mileage of a car

d. Whether a person is a college graduate

e. Whether a person has charge account

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23) Measurements from a population are called
a) Statistics b. parameters

c. Finite population d. Runs plot

24) Variables can classified into

a) Qualitative b) Quantitative

c) all of the previous

25) Temperature is an example of:

a) A nominal scale b) Ordinal scale

c) Interval scale d) ratio scale

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 *Cross section / time series data:

1) Cross section Data: data collected on different elements at

the same point in time or for the same period of time.

Example:

Sales of year 2007

Company
(billions of dollars)

Al-Huda 70

Al-Dana 43

Al-Noor 2.7

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 *Cross section / time series data:

2) Time series Data: Data collected on the same element for the same variable at different points in
time or for different periods of time:

Example:
Sales of Al-Dana Company

Sales
Year
(billions of dollars)

2005 20.9

2006 30

2007 43

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 *Cross section / time series data:

26) Indicate which of the following is an example of a sample with replacement and which is a
sample without replacement.

a. Ten students are selected from a statistics class in such a way that as soon as a student is
selected, his or her name is deleted from the list before the next student is selected.

b. A box contains five balls of different colors. A ball is drawn from this box, its color is
recorded, and it is put back into the box before the next ball is drawn. This experiment is
repeated 12 times.

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27) Total rooms in each of six houses are 8, 5, 10, 6, 5, and 8. Let x be the number of rooms in a
house. Find
a. ∑x b. (∑x)2 c. ∑x2

28) The following table lists five pairs of m and  values.

m 3 6 9 12 15
 15 25 40 20 12

Calculate:

a. ∑m b. ∑ c. ∑m2 d .(∑m)2 e. ∑m

b. f. ∑m2 g. ∑2 h.∑(m2 _ 2) i.∑(m _ 2)2 j. (∑(m _ 2))2

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 Multiple Choice Questions: Select the best answer

1. Suppose a survey is taken of 250 high school students. We would refer to this group as:
a. a sample b. a population

c. a system d. a process

2. The collection of all possible individuals, objects, or measurements is called a.

a. sample b. a ratio measurement

c. an inference d. a population

3. Techniques used to organize, summarize, and present the data that have been collected are called
a. populations b. samples

c. descriptive statistics d. inferential statistics

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4. When data are collected in a statistical study for only a portion or subset of all elements of interest,
we are using:
a. a sample b. a parameter c. a population d. Both b and c

5. What type of variable is 'the number of times you go to your college per week'?
a. Continuous b. Qualitative c. Discrete d. None of the above

6. Counting the number of cars which do not stop at a particular stop sign during the noon hour every
day for three weeks would yield
a. continuous data. b. discrete data.

c. categorical data. d. a type which cannot be determined.

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7. A consumer group conducts crash tests for a new model of car. To determine the severity of
damage to 1996 Mazda 626's resulting from a 10 mile/hour crash into a concrete wall, six cars of this
type are tested. The population is

a. all midsize cars b. the six cars chosen for the test

c. all (1996) Mazda 626's d. cannot be determined

8. What type of variable is "the number of times you visit the museums monthly"?
a. continuous b. qualitative c. discrete d. none of the above

9. One hundred residents of a city are polled to obtain information on voting intentions
in an upcoming city election. The one hundred residents in this city is an example of
a. census b. sample c. observation d. population

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10. Which one of these variables is a continuous random variable?

a. The time it takes a randomly selected student to complete an exam

b. The number of books a randomly selected person has.

c. The number of women taller than 68 inches in a random sample of 5women.

d. The number of editing errors in a newspaper

11. How should you classify data from the following: What is the number of times during the
summer that you go to the beach?
a. continuous b. discrete

c. qualitative, d. None of the above.

12. A simple random sample is one where

a. The characteristics of the sample are not the same as the characteristics of the population.

b. you choose each item with regard to previous choices.

c. each item in the population has an equal chance of being chosen. 40

d. all of the above are true.
13. In order to rate TV shows, a survey was done and data are collected about the following
variables Which of these variables are categorical?

I. The type of show being watched

II. The number of persons watching the show
III. The ages of persons watching the show
IV. The name of the show being watched
V. The number of time the show has been watched in the last month
a. II, III, and V b. I only c. I and V d. I and IV

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14. The manager of the customer service division of a major consumer electronics company is interested in determining
whether the customers who have purchased a videocassette recorder made by the company over the past 12 months
satisfied with their products.
1) The possible responses to the question "What brand of videocassette recorder did you purchase?" are values from a
A) Qualitative random variable.

B) Parameter.

C) Continuous numerical random variable.

D) Discrete numerical random variable.

2. The possible responses to the question "how many people are there in your household?" are values from a
A) Discrete numerical random variable. B) parameter.

C) continuous numerical random variable. D) qualitative random variable.

3. The possible responses to the question "How much time do you use the videocassette recorder every
week on the average?" are values from a
A) qualitative random variable. B) discrete numerical random variable.
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C) parameter. D) continuous numerical random variable.
15. A population is:
a. a number or measurement collected as a result of observation

b. a subset of a sample

c a characteristic of a population which is measurable

d. a complete set of individuals, objects, or measurements having some common observable

characteristics

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