Mock Exam

Spring 2024
Business Statistics I

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The exam has two parts. Part I has 10 multiple choice questions and Part II has 6 problems
that you need to solve.

Part I: Identify the letter of the choice that best completes the statement or answers the question.

1. Which measure of central location is meaningful when the data are interval?

a. The mean.
b. The median.
c. The mode.
d. All of these choices are meaningful for interval data.

2. A cable company plans to survey potential customers in a small city currently served by satellite dishes.
The company randomly selected a sample of 50 city blocks and surveyed every family living on those
blocks. What is the statistical name for the sampling technique used?

a. Stratified random sampling.

b.
c.
Cluster sampling.
Simple random sampling. Ier e III
d. None of the above.
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3. A politician who is running for the office of governor of a state with 4 million registered voters
commissions a survey. In the survey, 54% of the 5,000 registered voters interviewed say they plan to vote
for her. The population of interest is:
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a. the 4 million registered voters in the state.
b. the 5,000 registered voters interviewed.
c. the 54% who plan to vote for her.
d. all the residents of the state.

4. The Empirical Rule states that the approximate percentage of measurements in a data set (providing that
the data set has a bell shaped distribution) that fall within two standard deviations of their mean is:
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a.
b.
68%.
75%. K 2 K I 681

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c. 95%.
d. 99%.

5. Which of the following is a correct statement?

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 a. The range is the square root of the variance.
b. Two data sets with the same range will have the same variance.
c. The range is a measure of variability.
d. More data is used to calculate a range than a variance.

6. When two variables tend to move in the same direction, yet still form a linear pattern, how do you
describe their relationship?
Same direction Positive
a. A positive linear relationship.
b. A negative linear relationship. oppositedirection Negative
c. A proportional inverse relationship.
d. None of these choices. random No relationship
7. Which of the following describes the shape of the histogram below?
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a. Positively skewed
b. Negatively skewed
c. Symmetric
d. None of these choices.
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8. Which of the following causes non-sampling error?

a. Taking a random sample from a population instead of studying the entire population.
b. Making a mistake in the process of collecting the data.
c. Selection bias.
d. b and c.

9. Which of the following situations is best suited for a pie chart?

a. The number of dollars spent this year on each category of final goods.
b. The percentage of a charitable donation that goes to administrative costs vs. directly to the charity.
c. The number of students in your class who received an A, B, C, D, F on their exam.
d. All of these choices are true.

2
 10. Below is the pie graph showing mother tongue of people in a society. Total number
of people in society is 1500. How many people speak Marathi?
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a) 255
391 1500 585
b) 270
c) 390
d) 585

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 Part II: Solve the following five problems. Show all the steps in your work.

Problem 1

The following data represent the salaries (in thousands of dollars) of a sample of 10 employees of a firm:

10, 15, 13, 11, 10, 10, 15, 20, 15, 21.
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Calculate the mean, median, and mode.

1) Mean
10 + 15 + 13 + 11 + 10 + 10 + 15 + 20 + 15 + 21
= 14
10
2) Median

10 10 10 11 13 15 15 15 20 21

13 + 15
2
= 14 or n+÷ = 5.5
3) Mode = 10 and 15
median is between 5ᵗʰ and 6ᵗʰ
position
b. Calculate the range, variance, standard deviation, and coefficient of variation.

1) Range => 21-10 = 11

(10 − 14)! + (10 − 14)! + (10 − 14)! + (11 − 14)! + (13 − 14)! + (15 − 14)! + (15 − 14)! +
(15 − 14)! + (20 − 14)! + (21 − 14)!
10 − 1

(−4)! + (−4)! + (−4)! + (−3)! + (−1)! + (1)! + (1)! +

(1)! + (6)! + (7)!
9

2) Variance(s2) = 16.22 in 1000 dollars2

3) Standard deviation (s) =√16.22

s= 4.03 in 1000 dollars

".$%
4) CV = &"
* 100

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left Skewed
-
→ median > mean
c. Describe the shape for the given set of data.
Right Skewed
-
→ mean > median
Since the mean=median, the data set is symmetrical.
4
symmetric → mean = median
Problem 2

The grades of a Math exam have a mean of 80 and a variance of 4. If the distribution of grades is positively
skewed,

a. Find the range of grades (interval) and the percentage (proportion) of grades that fall within two
standard deviations from the mean.

percentage :
Since the grades distribution is positively skewed, according to the Chebychev’s theorem, at least 75%
of the data lies within two standard deviation from the mean:
1
1 − 𝑘 2 𝑓𝑜𝑟 𝑘 > 1

1
1 − 22 = .75 × 100 = 75%

Interval
At least 75% :percentage (proportion) of grades fall within two standard deviations from the mean

𝑠 = √𝑠 2 = √4 = 2

(𝑥̅ − 2𝑠, 𝑥̅ + 2𝑠 = (80 − 2(2), 80 + 2(2) = (76,84)

b. Find the percentage (proportion) of grades that fall within five standard deviations from the mean.

percentage :
1
1− 𝑓𝑜𝑟 𝑘 > 1
𝑘2

1
1 − 52 = .96 × 100 = 96%

At least 96% percentage (proportion) of grades fall within five standard deviations from the mean

(𝑥̅ − 2𝑠, 𝑥̅ + 2𝑠 = (80 − 2(5) , 80 + 2(5)) = (70,90)

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Problem 3

The following is a set of data from a sample of n = 6:

9 6 7 11 3 15

a. Calculate the first quartile (Q1), the third quartile (Q3), and the interquartile range.

3 6 7 9 11 15

𝐿𝑄 1 =
𝑛+1
4
=
6+1
4
= 1.75 ≈ 2 ) Q1 = 6
𝑄1 = 6

𝐿𝑄 3 =
3(𝑛+1)
4
=
3(6+1)
4
= 5.25 ≈ 5 ) Q3 = 11

𝑄3 = 11

𝐼𝑄𝑅 = 𝑄3 − 𝑄1 = 11 − 6 = 5

b. Find and list the five-number summary.

Smallest value = 3

𝑄1 = 6
13+15
𝑄2 = 𝑀𝑒𝑑𝑖𝑎𝑛 = =8
2

𝑄3 = 11

Largest value =15

c. Draw a boxplot and describe the shape of the data.

3 6 8 11 15

Since the Median − Xsmallest < X_𝑙𝑎𝑟𝑔𝑒𝑠𝑡 − Median , the shape is positively skewed.

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 Problem 4

Consider the following sample data: n 4

X 8 6 4 2

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a. Compute the covariance between X and Y.

! " !−$
! $
"−" (! − !
$)(" − "
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8 0 3 -7 -21
6 5 1 -2 -2
4 8 -1 1 -1
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2 7 6 155115 -3 8 -24
7 4 5 8 7 2 5 15 7
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8+6+4+2 -48
48 $=
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4
0 + 5 + 8 + 15
4 1 $=
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4
=7

−48
1!" =
f
4−1
= −16

b. Compute the coefficient rof correlation between X and Y.

23453678 (!) = (3)! + (1)! + (−1)! + (−3)!

Sxy 16
;! = 6.67

Sx Ñ ; = √6.67

f
2.5816 0.98
4 55 55 6.27
>3453678 (") = (−7)! + (−2)! + (1)! + (8)!
1,4 ;! = 39.33
f

6.67 258 ; = √39.33

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c. Based on your answer in part b, describe the direction and the strength of the relationship between X and Y.
range
Based on covariance & correlation > there is a negative linear relationship between x and y. It is a strong
relationship because r (-0.98) is close to -1.

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Problem 5

A survey of commercial buildings served by the Cincinnati Gas & Electric Company asked what main heating
fuel was used and what year the building was constructed. A partial contingency table of the findings follows.

Fuel Type
Construction Electricity Natural Oil Propane Other Total
Period Gas
Period 1 10 20 30 50 10
Period 2 20 40 60 100 20
Period 3 30 60 90 150 30
Period 4 40 80 120 200 40
Total

a. Complete the contingency table by showing the row totals and column totals.

Fuel Type
Construction
Electricity Natural Gas Oil Propane Other Total
Period
Period 1 10 20 30 50 10 120
Period 2 20 40 60 100 20 240
Period 3 30 60 90 150 30 360
Period 4 40 80 120 200 40 480
Total 100 200 300 500 100 1200

b. Prepare a contingency table showing row percentages.

Fuel Type
Construc-
tion Period Electricity Natural Gas Oil Propane Other Total

Period 1 8.33% 16.67% 25.00% 41.67% 8.33% 100.0%

Period 2 8.33% 16.67% 25.00% 41.67% 8.33% 100.0%
Period 3 8.33% 16.67% 25.00% 41.67% 8.33% 100.0%
Period 4 8.33% 16.67% 25.00% 41.67% 8.33% 100.0%

c. Describe the relationship between construction period and fuel type. Justify your answer.

The row percentages show that the use of fuel types within each construction period remains the same. There is
no change. For example, in Period 1, the buildings percentages of use of Electricity, Natural Gas, Oil, Propane,
and Other, as the main heating fuel, remains the same as Period 2, 3 and 4. This suggests that there is no
relationship between the construction period and the choice of heating fuel.

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Problem 6

The ages (in years) of a sample of 25 teachers are as follows:

55 31 25 27 33

29 25 31 36 29

35 35 36 32 38

46 46 42 44 46

39 41 48 54 22

a. Organize these ages as an ordered array.

22 25 25 27 29
29 31 31 32 33
35 35 36 36 38
39 41 42 44 46
46 46 48 54 55

b. Divide the data into 5 classes and then fill out the table below. (3 marks)

𝑅𝑎𝑛𝑔𝑒 33
Width of the class=# 𝑜𝑓 𝐶𝑙𝑎𝑠𝑠𝑒𝑠 = = 6.6 ≈ 7
5

Class Frequency Relative Frequency Cumulative Relative Frequency

(in years)

22___29 4 16% 16%

29___36 8 32% 48%

36___43 6 24% 72%

43___50 5 20% 92%

50___57 2 8% 100%

c. Around which class grouping, if any, are these ages concentrated? Explain.
Ages are concentrated at the class grouping (29-36) because it has the highest frequency (8) and the largest relative fre-
quency value (32%).