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Business Stats Consolidated
Business Stats Consolidated
From a population that is normally distributed, a sample of 25 elements is selected and the
standard deviation of the sample is computed. For the interval estimation of m, the proper
distribution to use is the
- Normal distribution
- T distribution
- T distribution with 26 degrees of freedom
- T distribution with 24 degree of freedom
Q2. If x is a variable with values 10,20,30 and frequency 6, unknown, 2 respectively. The average
value of x is 16. What will be the known frequency?
- 2
- 4
- 5
- None of these
Q3. If random variable x is normally distributed with mean 20 and standard deviation 10, then for
what value of x score is 2.5
- 45
- 54.5
- 30.5
- 25
Q4. The J.O. Supplies company buys calculators from a non-us supplier. The probability of a defective
calculator is 10 percent. If 100 calculations are selected at random. What is the standard deviation of
the number of defectives?
- 9
- 3.77
- 9.49
- 3
Q5. Passage:-
A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution
Question:-
How many lamps will fail between 950 and 1000 hours?
- 200
- 250
- 234
- 1250
Q6. Passage:-
A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution
Question:-
What proportion of lamps will fail before 925 hours?
- 0.16
- 0.25
- 0.30
- 0.40
Q7. Passage:-
A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution
Question:-
- 4560
- 2300
- 2000
- 4000
Q8. Passage:-
A batch of 5000 electric lamps have a mean life of 1000 hours and standard deviation of 75 hours.
Assume a normal distribution
Question:-
Given the same mean life, what would the standard deviation have to be ensure that no more than
20% of lamps fail before 916 hours?
- 120
- 123
- 100
- None of these
Q9. A lottery is conducted using three urns. Each urn contains chips numbered from 0 to 9. One chip
is selected at random from each urn. The total number of sample points in the sample space is
- 30
- 100
- 729
- 1000
Q10. Mean weight of the class od students is 65, and standard deviation is 20. If a group of 16
students is randomly selected from the class, then the probability that average weight of group is
greater than 75 (table value at z=2 is 0.48)
- 0.02
- 0.48
- 0.98
- None of these
Q11. If random variable x is normally distributed with mean 20 and standard deviation 10, then z –
score for x =25 is ______
- Right- skewed
- Left skewed
- Symmetrical
- None of these
Q13. The summaries of data, which may be tabular, graphical, or numerical are referred to as
- Inferential statistics
- Descriptive statistics
- Statistical inference
- Report generation
Q14. If an interval estimate is said to be constructed at the 90% confidence level, the confidence
would be
- 0.1
- 0.95
- 0.9
- 0.05
- Histogram
- Bar graph
- Relative frequency
- Pie chart
Q16. If x is a variable with values 10,20,30 and frequency 6, unknown,2 respectively. The average
value of x is 16. What will be the unknown frequency?
- 2
- 4
- 5
- None of these
- 12
- 22
- 32
- 42
Q13. As the number of degrees of freedom for a t distribution increases, the difference between the
t distribution and the standard normal distribution
- Becomes larger
- Becomes smaller
- Stays the same
- None of above answer
Q14. In hypothesis testing if the null hypothesis has been rejected when the alternative hypothesis
has been true
Q15. In the following example, null and alternative hypothesis are written as Ho: sample proportion<
0.25Ha: sample proportion >0.25. select a statement which hold true
Q16. Values of quartiles from a given data is given as, first quartile= 5, second quartile= 10, third
quartile= 20. What will be the median for this data?
- 12.5
- 10
- 20
- Data is insufficient
Q17. A coin is tossed twice. It could be head or tails each time. There are four combinations. Are
they
- Stratified sample
- Cluster sample
- Quota sampling
- Neither of them
Q23. Fifteen percent of the students in a school of business. Administration are majoring in
economics, 20%in finance, 35% in management , and 30% in accounting. The graphical device (s)
which can be used to present these data is (are)
- A line graph
- Only a bar graph
- Only a pie chart
- Both a bar graph and a pie chart
Q24. Consider a hypothesis H0 where ϕ0 = 5 against H1 where ϕ1 > 5. The test is – Right Tailed
Q25
Business Statistics – Final Exam (70 Questions) A batch of 5000 electric lamps have a mean
life of 1000 hours and standard deviation of 75 hours. Assume a normal distribution
3. How many lamps will fail between 900 and 100 hours? 1250
4. Given the same mean life, what would the standard deviation have to be to ensure that
no more than 20% lamps will fail before 916 hours? 100
5. Whenever using the t distribution in estimation, we must assume that The sampling
distribution is approximately normal
7. A complete price index based on the prices of a group of items is known as the……
Aggregate Price Index
8. A cumulative relative frequency distribution shows: The percentage of data items with
values less than or equal to the upper limit of each class
9. In constructing a frequency distribution, as the number of classes are decreased the class
width Remains unchanged
10. I have 4 areas where I wish to conduct a market survey and wish to ensure all income
groups are equally represented. However, I wish to draw samples at random from within the
various groups. I will conduct a…………… Stratified Sample
11. The t distribution is applicable whenever…… the population is normal and the sample
standard deviation is used to estimate the population standard deviation
12. If random variable x is normally distributed with mean 20 and standard deviation 10,
then for what value of x, z score is -2.5………………. 45
13. A frequency distribution is………… a tabular summary of a set of data showing the
frequency of items in each of several non-overlapping classes
14. From a population that is normally distributed, a sample of 25 elements is selected and
the standard deviation of the sample is computed. For the interval estimation of m, the
proper distribution to use is the………….. t distribution with 24 degrees of freedom
15. The intersection of two mutually exclusive events……… Can be any positive value
16. Chi square test can be used to……. a. Analyze differences between various population
proportions b. Test the hypothesis of independence between two categorical variables c.
Test the goodness of fit of a distribution d. All of these
17. A test has been used to check average marks of boys and girls differ significantly. What
test it could be? ANOVA
18. From a population that is not normally distributed and whose standard deviation is not
known, a sample of 20 items is selected to develop an interval estimate for m.………….. The t
distribution with 19 degrees of freedom must be used
19. A and B are mutually exclusive and collectively exhaustive events. Probability of A is 0.60.
Probability of B is……….. Equal to 0.40
20. The degrees of freedom for the F test in a one-way ANOVA are………. (n – c) and (c – 1)
21. Which test will you use if you have a numerical variable and related samples? Paired t
test
22. In hypothesis testing if the null hypothesis is rejected………… the alternative hypothesis
is true
23. As the number of degrees of freedom for a t distribution increases, the difference
between the t distribution and standard normal distribution…………. Becomes smaller
24. A company wishes to determine the top 20 distributors of a particular product. He would
have to construct a……….. Pareto Chart
25. Which among the following is not true about coefficient of correlation? It can have a
value equal to zero
26. If A and B are two mutually exclusive and exhaustive events with probability of A equal
to 0.3, then find probability of B………… 0.7
27. The mean of a sample……………. Is computed by summing all the data values and
dividing the sum by the number of items
28. The most common graphical presentation of quantitative data is a…………. histogram
29. If the null hypothesis is false then which of the following is accepted? Alternative
Hypothesis
30. A statement is made about a population for testing purpose is called……… Hypothesis
31. In the following example, null and alternative hypothesis are written as HO: sample
proportion < 0.10 Ha: sample proportion > 0.10. Select a statement which hold true…… Null
and alternative hypothesis not set for population parameter
32. Which statement is true for Normal curve? Area under the normal curve is equal to one
33. In hypothesis testing if the null hypothesis has been rejected when the alternative
hypothesis has been true…………… A type I error has been committed
35. If random variable x is normally distributed with mean 20 and standard deviation 10,
then zscore for x = 25 is………………… z-score for x = 25 is equal to 0.5
36. A simple random sample of 100 observations was taken from a large population. The
sample mean and the standard deviation were determined to be 80 and 12 respectively. The
standard error of the mean is……………….. 1.2
38. Mention the type of the normal distribution…………. Normal is a continuous type of
distribution
39. Which of the following test is based on observed and expected frequencies? Chi Square
40. Simulation is a popular tool………. Used as pilot testing and imitate real world
42. Fifteen percent of the students in a school of Business Administration are majoring
Economics, 20% in Finance, 35% in Management, and 30% Accounting. The graphical
device(s) which can be used to present these data is (are)………………… both a bar graph and
a pie chart
43. From 180 students of a PGDM program, 30 opt for HR, 50 opt for Marketing, 60 opt
Finance, rest of the student opt Operations. What will be the angle corresponding to
Operations, if this data is presented in pie chart? 80
45. The addition law is potentially helpful when we are interested in computing the
probability of………. The intersection of two events
46. In the following example, null and alternative hypothesis are written as HO: sample
proportion < 0.25 Ha: sample proportion > 0.25. Select a statement which hold true…… - Null
and alternative hypothesis are rightly set to conduct testing
47. A lottery is conducted using three urns. Each urn contains chips numbered from 0 to 9.
One chip is selected at random from each urn. The total number of sample points in the
sample space is……… 1000
48. ………………. test would test whether the population mean is less than a specified
value……………. One tail hypothesis
49. Which of these is true…………. The sum of differences between the mean and each
element of the data-set is 0
50. If a dice is tossed twice, how many cases will give the sum of 10? 3
51. In a cumulative relative frequency distribution, the last class will have a cumulative
relative frequency equal to……………………. The total number of elements in the data set
52. Values for the probabilistic inputs to a simulation…………… are randomly generated
based on historical information
53. A hair/fair die is rolled 10 times. What is the average number of even number outcomes?
5
54. Simulation……………. a. Does not guarantee optimally b. Is flexible and does not require
the assumptions of theoretical models c. Allows testing of the system without affecting the
real system d. All of the alternatives are correct
55. A and B are mutually exclusive events. Probability of A is 0.60. Probability of B is….. Equal
to 0.40
56. As the number of degrees of freedom for a t distribution increases, the difference
between the t distribution and standard normal distribution…………. Becomes smaller
57. In the data-set 1,2,5,7,9,2 by changing the 3rd variable to 6….. The mean and median
are altered
58. Parametric test example are………….. t-test, z-test, f-test, all of these
60. Chi-square test statistic is equal to the squared difference between……… Observed and
Expected
61. An index that is designed to measure changes in quantities over time is the…….. quantity
index
62. The ages in an old age home areas follows 65, 66, 67, 63, 68, 69, 70, 88, 91, 73, 64, 71.
The mode of ages in the home is…………… does not exist
64. A type 1 error occurs when we……………… reject a true null hypothesis
65. Average marks obtained in a class of 120 students is 60. If the average marks of all 75
boys is 45 then find average marks obtained by girls…………….. 85
66. If an interval estimate is said to be constructed at the 90% confidence level, the
confidence coefficient would be…………………. 0.9
70. The sum of the percent frequencies for all classes will always equal to………… 100