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Key Concepts in Statistics Explained

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Derara Chala
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0% found this document useful (0 votes)
63 views14 pages

Key Concepts in Statistics Explained

Insurance question

Uploaded by

Derara Chala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

+ Der

ara

1.Whati
sthedef
ini
ti
onofst
ati
sti
cs?

a)Thest
udyofuncer
tai
ntyandv
ari
abi
l
ity

b)Thest
udyofnumber
s

c)Thest
udyofshapesandpat
ter
ns

d)Thest
udyofpr
obabi
l
ity

Answer
:a)Thest
udyofuncer
tai
ntyandv
ari
abi
l
ity

2.Whati
sthepur
poseofdescr
ipt
ivest
ati
sti
cs?

a)Tomakepr
edi
cti
onsaboutt
hef
utur
e

b)Tosummar
izeanddescr
ibedat
a

c)Tot
esthy
pot
heses

d)Todet
ermi
necauseandef
fectr
elat
ionshi
ps

Answer
:b)Tosummar
izeanddescr
ibedat
a

3.Whi
chmeasur
eofcent
ral
tendencyi
snotaf
fect
edbyext
remev
alues?

a)Mean

b)Mode

c)Medi
an

d)Range

Answer
:c)Medi
an

4.Whatdoest
het
erm"
disper
sion"r
efert
oinst
ati
sti
cs?

a)Theav
eragev
alueofadat
aset
b)Thespr
eadorv
ari
abi
l
ityofadat
aset

c)Ther
elat
ionshi
pbet
weent
wov
ari
abl
es

d)Thedi
ff
erencebet
weent
wosampl
emeans

Answer
:b)Thespr
eadorv
ari
abi
l
ityofadat
aset

5.Whati
sthedi
ff
erencebet
weenapopul
ati
onandasampl
e?

a)Apopulat
ionr
efer
stoagr
oupofi
ndi
vi
dual
s,whi
l
easampl
eisasubsetoft
hat
popul
ati
on.

b)Apopul
ati
onr
efer
stoasubsetofasampl
e,whi
l
easampl
eref
erst
otheent
ir
e
gr
oup.

c)Apopulat
ionref
erst
oaspeci
fi
cgeogr
aphi
car
ea,
whi
l
easampl
eref
erst
oa
speci
fi
cti
meper i
od.

d)Apopul
ati
onr
efer
stoagr
oupofv
ari
abl
es,
whi
l
easampl
eref
erst
oasi
ngl
e
v
ari
abl
e.

Answer:a)Apopul
ati
onr
efer
stoagr
oupofi
ndi
vi
dual
s,whi
l
easampl
eisasubsetof
thatpopul
ati
on.

6.Howi
sthemeancal
cul
ated?

a)Sum ofal
lval
uesdi
vi
dedbyt
henumberofv
alues

b)Themi
ddl
eval
uei
nanor
der
eddat
aset

c)Thev
aluet
hatoccur
smostf
requent
lyi
nadat
aset

d)Thedi
ff
erencebet
weent
hel
argestandsmal
l
estv
aluesi
nadat
aset

Answer
:a)Sum ofal
lval
uesdi
vi
dedbyt
henumberofv
alues

7.Whatdoescor
rel
ati
onmeasur
e?

a)Thest
rengt
handdi
rect
ionoft
her
elat
ionshi
pbet
weent
wov
ari
abl
es

b)Thedi
ff
erencebet
weent
womeans

c)Thespr
eadorv
ari
abi
l
ityofadat
aset

d)Thepr
obabi
l
ityofanev
entoccur
ri
ng

Answer
:a)Thest
rengt
handdi
rect
ionoft
her
elat
ionshi
pbet
weent
wov
ari
abl
es
8.Whatdoesr
anger
epr
esenti
nst
ati
sti
cs?

a)Thedi
ff
erencebet
weent
hel
argestandsmal
l
estv
aluesi
nadat
aset

b)Theav
eragev
alueofadat
aset

c)Thest
andar
ddev
iat
ionofadat
aset

d)Themedi
anv
alueofadat
aset

Answer
:a)Thedi
ff
erencebet
weent
hel
argestandsmal
l
estv
aluesi
nadat
aset

9.Whati
sthemodei
nst
ati
sti
cs?

a)Theav
eragev
alueofadat
aset

b)Thev
aluet
hatoccur
smostf
requent
lyi
nadat
aset

c)Themi
ddl
eval
uei
nanor
der
eddat
aset

d)Thedi
ff
erencebet
weent
hel
argestandsmal
l
estv
aluesi
nadat
aset

Answer
:b)Thev
aluet
hatoccur
smostf
requent
lyi
nadat
aset

10.Whati
sthepur
poseofi
nfer
ent
ial
stat
ist
ics?

a)Tosummar
izeanddescr
ibedat
a

b)Tomakepr
edi
cti
onsaboutt
hef
utur
e

c)Tot
esti
fther
eisev
idencet
osuppor
torr
ejectacl
aim aboutapopul
ati
on

d)Todet
ermi
necauseandef
fectr
elat
ionshi
ps

Answer
:c)Tot
esti
fther
eisev
idencet
osuppor
torr
ejectacl
aim aboutapopul
ati
on

11.Whi
chmeasur
eofcent
ral
tendencyi
snotaf
fect
edbyext
remev
alues?

a)Mean

b)Mode

c)Medi
an

d)Range

Answer
:c)Medi
an

12.Whatdoesv
ari
ancemeasur
einst
ati
sti
cs?
a)Theav
eragedi
ff
erencef
rom t
hemean

b)Theav
eragev
alueofadat
aset

c)Thest
andar
ddev
iat
ionsquar
ed

d)Theav
eragesquar
eddi
ff
erencef
rom t
hemean

Answer
:d)Theav
eragesquar
eddi
ff
erencef
rom t
hemean

13.Whatdoesp-
val
uer
epr
esenti
nhy
pot
hesi
stest
ing?

a)Thepr
obabi
l
ityofobser
vinganef
fecti
fitt
rul
yexi
stsi
nthepopul
ati
on

b)Thepr
obabi
l
ityofobser
vingt
hedat
agi
vent
hatt
henul
lhy
pot
hesi
sist
rue

c)Thepr
obabi
l
ityofobser
vinganef
fectduet
ochanceal
one

d)Thepr
obabi
l
ityofr
eject
ingt
henul
lhy
pot
hesi
swheni
tist
rue

Answer
:b)Thepr
obabi
l
ityofobser
vingt
hedat
agi
vent
hatt
henul
lhy
pot
hesi
sist
rue

14.Whati
sst
ati
sti
cal
signi
fi
cance?

a)Ameasur
eofhowl
i
kel
yiti
sthatanobser
vedef
fectoccur
redbychance

b)Ameasur
eofhowl
i
kel
yiti
sthatanobser
vedef
fectoccur
redduet
osampl
i
ng
er
ror

c)Ameasur
eofhowl
i
kel
yiti
sthatanobser
vedef
fectoccur
redduet
obi
as

d)Ameasur
eofhowl
i
kel
yiti
sthatanobser
vedef
fectoccur
redduet
oconf
oundi
ng
v
ar i
abl
es

Answer
:a)Ameasur
eofhowl
i
kel
yiti
sthatanobser
vedef
fectoccur
redbychance

15.Whati
sanor
mal
dist
ri
but
ion?

a)Adi
str
ibut
iont
hati
ssy
mmet
ri
candbel
l
-shaped

b)Adi
str
ibut
iont
hathasnoout
li
ers

c)Adi
str
ibut
iont
hathasequal
frequenci
esf
oral
lval
ues

d)Adi
str
ibut
iont
hathasnoskewnessorkur
tosi
s
Answer
:a)Adi
str
ibut
iont
hati
ssy
mmet
ri
candbel
l
-shaped

16.Whatdoesst
andar
ddev
iat
ionmeasur
e?

a)Theav
eragedi
ff
erencef
rom t
hemean

b)Theav
erageabsol
utedi
ff
erencef
rom t
hemean

c)Theav
eragesquar
eddi
ff
erencef
rom t
hemean

d)Thesquar
erootoft
heav
eragesquar
eddi
ff
erencef
rom t
hemean

Answer
:d)Thesquar
erootoft
heav
eragesquar
eddi
ff
erencef
rom t
hemean

17.Whati
saconf
idencei
nter
val
?

a)Ar
angeofv
alueswi
thi
nwhi
chwear
econf
identt
hatt
het
ruepopul
ati
onpar
amet
er
l
i
es

b)Ar
angeofv
alueswi
thi
nwhi
chwear
econf
identt
hatt
hesampl
emeanl
i
es

c)Ar
angeofv
alueswi
thi
nwhi
chwear
econf
identt
hatt
henul
lhy
pot
hesi
sist
rue

d)Ar
angeofv
alueswi
thi
nwhi
chwear
econf
identt
hatt
heal
ter
nat
ivehy
pot
hesi
sis
t
rue

Answer
:a)Arangeofv
alueswi
thi
nwhi
chwear
econf
identt
hatt
het
ruepopul
ati
on
par
ameterl
i
es

18.Whatdoespowerr
epr
esenti
nhy
pot
hesi
stest
ing?

a)Thepr
obabi
l
ityofobser
vinganef
fecti
fitt
rul
yexi
stsi
nthepopul
ati
on

b)Thepr
obabi
l
ityofobser
vingt
hedat
agi
vent
hatt
henul
lhy
pot
hesi
sist
rue

c)Thepr
obabi
l
ityofr
eject
ingt
henul
lhy
pot
hesi
swheni
tist
rue

d)Thepr
obabi
l
ityofobser
vinganef
fectduet
ochanceal
one

Answer
:c)Thepr
obabi
l
ityofr
eject
ingt
henul
lhy
pot
hesi
swheni
tist
rue

19.Whati
sanot
hert
ermf
orp-
val
ue?

a)Pr
obabi
l
ityv
alue

b)Si
gni
fi
cancel
evel
c)Conf
idencel
evel

d)Ef
fectsi
ze

Answer
:a)Pr
obabi
l
ityv
alue

20.Whatsampl
i
ngmet
hodi
nvol
vessel
ect
ingev
erynt
hindi
vi
dual
from apopul
ati
on?

a)Si
mpl
erandom sampl
i
ng

b)St
rat
if
iedsampl
i
ng

c)Cl
ust
ersampl
i
ng

d)Sy
stemat
icsampl
i
ng

Answer
:d)Sy
stemat
icsampl
i
ng

21.Whi
cht
ypeofgr
aphi
susedt
odi
spl
aycat
egor
ical
dat
a?

a)Li
negr
aph

b)Barchar
t

c)Scat
terpl
ot

d)Boxpl
ot

Answer
:b)Barchar
t

22.Whati
sanout
li
eri
nst
ati
sti
cs?

a)Anobser
vat
iont
hatf
all
swi
thi
ntheexpect
edr
angeorpat
ter
ninadat
aset

b)Anobser
vat
iont
hatf
all
sout
sidet
heexpect
edr
angeorpat
ter
ninadat
aset

c)Anobser
vat
iont
hathasmi
ssi
ngori
ncompl
etedat
a

d)Anobser
vat
iont
hathasext
remev
aluesf
oral
lvar
iabl
es

Answer
:b)Anobser
vat
iont
hatf
all
sout
sidet
heexpect
edr
angeorpat
ter
ninadat
aset

23.Whatdoesi
nfer
ent
ial
stat
ist
icsi
nvol
ve?

a)Dr
awi
ngconcl
usi
onsabouti
ndi
vi
dual
sbasedonsampl
edat
a

b)Dr
awi
ngconcl
usi
onsaboutpopul
ati
onsbasedonsampl
edat
a
c)Dr
awi
ngconcl
usi
onsaboutsampl
esbasedonpopul
ati
ondat
a

d)Dr
awi
ngconcl
usi
onsaboutv
ari
abl
esbasedonobser
vat
ional
dat
a

Answer
:b)Dr
awi
ngconcl
usi
onsaboutpopul
ati
onsbasedonsampl
edat
a

24.Whi
cht
ypeofv
ari
abl
ecant
akeonanyv
aluewi
thi
nar
ange?

a)Nomi
nal
var
iabl
e

b)Cont
inuousv
ari
abl
e

c)Or
dinal
var
iabl
e

d)Cat
egor
ical
var
iabl
e

Answer
:b)Cont
inuousv
ari
abl
e

25.Howi
spr
obabi
l
itycal
cul
ated?

a)Numberoff
avor
abl
eout
comesdi
vi
dedbyt
otal
numberofout
comes

b)Tot
alnumberofout
comesdi
vi
dedbynumberoff
avor
abl
eout
comes

c)Numberoff
avor
abl
eout
comesmul
ti
pli
edbyt
otal
numberofout
comes

d)Tot
alnumberofout
comesmul
ti
pli
edbynumberoff
avor
abl
eout
comes

Answer
:a)Numberoff
avor
abl
eout
comesdi
vi
dedbyt
otal
numberofout
comes

26.Whatdoessampl
esi
zer
efert
o?

a)Thenumberofi
ndi
vi
dual
sorobser
vat
ionsi
ncl
udedi
nasampl
e

b)Thenumberofi
ndi
vi
dual
sorobser
vat
ionsi
ncl
udedi
nthepopul
ati
on

c)Thenumberofv
ari
abl
esi
ncl
udedi
nananal
ysi
s

d)Thenumberofsampl
esi
ncl
udedi
nanexper
iment

Answer
:a)Thenumberofi
ndi
vi
dual
sorobser
vat
ionsi
ncl
udedi
nasampl
e

27.Whatdoesr
andom sampl
i
ngi
nvol
ve?

a)Sel
ect
ingi
ndi
vi
dual
sorobser
vat
ionsbasedonspeci
fi
ccr
it
eri
aorpat
ter
ns.

b)Sel
ect
ingi
ndi
vi
dual
sorobser
vat
ionswi
thoutanyspeci
fi
cpat
ter
norcr
it
eri
a.

c)Sel
ect
ingi
ndi
vi
dual
sorobser
vat
ionsbasedont
hei
rchar
act
eri
sti
csorat
tr
ibut
es.
d)Sel
ect
ingi
ndi
vi
dual
sorobser
vat
ionsbasedont
hei
rav
ail
abi
l
ityorconv
eni
ence.

Answer
:b)Sel
ect
ingi
ndi
vi
dual
sorobser
vat
ionswi
thoutanyspeci
fi
cpat
ter
norcr
it
eri
a.

28.Whatdoesnul
lhy
pot
hesi
sassume?

a)Ther
eisnosi
gni
fi
cantdi
ff
erenceorr
elat
ionshi
pbet
weenv
ari
abl
es.

b)Ther
eisasi
gni
fi
cantdi
ff
erenceorr
elat
ionshi
pbet
weenv
ari
abl
es.

c)Ther
eisnor
elat
ionshi
pbet
weenv
ari
abl
es,
butt
her
emaybedi
ff
erences.

dTher
eisnodi
ff
erencebet
weenv
ari
abl
es,
butt
her
emayber
elat
ionshi
ps.

Answer
:a)Ther
eisnosi
gni
fi
cantdi
ff
erenceorr
elat
ionshi
pbet
weenv
ari
abl
es.

29.Whatdoesal
ter
nat
ivehy
pot
hesi
sassume?

aTher
eisnosi
gni
fi
cantdi
ff
erenceorr
elat
ionshi
pbet
weenv
ari
abl
es.

bTher
eisasi
gni
fi
cantdi
ff
erenceorr
elat
ionshi
pbet
weenv
ari
abl
es.

cTher
eisnor
elat
ionshi
pbet
weenv
ari
abl
es,
butt
her
emaybedi
ff
erences.

dTher
eisnodi
ff
erencebet
weenv
ari
abl
es,
butt
her
emayber
elat
ionshi
ps.

Answer
:bTher
eisasi
gni
fi
cantdi
ff
erenceorr
elat
ionshi
pbet
weenv
ari
abl
es.

30.Whi
cht
ypeofgr
aphdi
spl
aysquar
ti
les,
medi
an,
andout
li
ers?

aLi
negr
aph

bBargr
aph

cPi
echar
t

dBoxpl
ot

Answer
:dBoxpl
ot

31.Whatdoesconf
idencel
evel
repr
esenti
nconf
idencei
nter
val
s?

aThel
evel
atwhi
chwear
econf
identt
hatoursampl
emeanf
all
swi
thi
nacer
tai
nrange.

bThelev
elatwhi
chwear
econf
identt
hatourpopul
ati
onmeanf
all
swi
thi
nacer
tai
n
r
ange.

cThel
evel
atwhi
chwear
econf
identt
hatoursampl
est
andar
ddev
iat
ionf
all
swi
thi
na
cer
tai
nrange.

dThelevelatwhi
chwear
econf
identt
hatourpopul
ati
onst
andar
ddev
iat
ionf
all
swi
thi
n
acer
tai
nrange.

Answer:
aThelev
elatwhi
chwear
econf
identt
hatoursampl
emeanf
all
swi
thi
na
cer
tai
nrange.

32.Whatt
ypeofer
roroccur
swhenwer
ejectt
henul
lhy
pot
hesi
swheni
t'
sact
ual
l
ytr
ue?

aTy
peIer
ror(
alphaer
ror
)

bTy
peI
Ier
ror(
bet
aer
ror
)

cTy
peI
IIer
ror(
gammaer
ror
)

dTy
peI
Ver
ror(
del
taer
ror
)

Answer
:aTy
peIer
ror(
alphaer
ror
)

33.Whatt
ypeofer
roroccur
swhenwef
ail
tor
ejectt
henul
lhy
pot
hesi
swheni
t'
sact
ual
l
y
fal
se?

aTy
peIer
ror(
alphaer
ror
)

bTy
peI
Ier
ror(
bet
aer
ror
)

cTy
peI
IIer
ror(
gammaer
ror
)

dTy
peI
Ver
ror(
del
taer
ror
)

Answer
:bTy
peI
Ier
ror(
bet
aer
ror
)

34.Howdoesst
andar
ddev
iat
ionmeasur
evar
iabi
l
ity
?

aI
tmeasur
est
heav
eragedi
stancebet
weeneachdat
apoi
ntandt
hemean.

bI
tmeasur
est
heav
erageabsol
utedi
stancebet
weeneachdat
apoi
ntandt
hemean.

cI
tmeasur
eshowspr
eadoutt
hedat
apoi
ntsar
efr
om eachot
her
.

dI
tmeasur
eshowmucheachdat
apoi
ntdev
iat
esf
rom i
tspr
edi
ctedv
alue.

Answer
:aI
tmeasur
est
heav
eragedi
stancebet
weeneachdat
apoi
ntandt
hemean.

35.Whatdowecal
lanobser
vat
iont
hatf
all
sfarawayf
rom mostot
herobser
vat
ions?
aAnext
remev
alue

bAnout
li
er

cAnanomal
y

dAnabnor
mal
i
ty

Answer
:bAnout
li
er

36.Whatty
peofsampli
nginv
olv
esdivi
dingt
hepopul
ati
oni
ntosubgr
oupsandt
hen
randoml
yselect
ingi
ndi
vi
dual
sfr
om eachsubgr
oup?

aSi
mpl
erandom sampl
i
ng

bSt
rat
if
iedsampl
i
ng

cCl
ust
ersampl
i
ng

dSy
stemat
icsampl
i
ng

Answer
:bSt
rat
if
iedsampl
i
ng

37.Whi
cht
ypeofgr
aphdi
spl
ayscont
inuousdat
ausi
ngbar
s?

aLi
negr
aph

bBargr
aph

cPi
echar
t

dHi
stogr
am

Answer
:dHi
stogr
am

38.Whi
chmeasur
edescr
ibeshowspr
eadoutt
hedat
apoi
ntsar
efr
om eachot
her
?

aMean

bMedi
an

cSt
andar
ddev
iat
ion

dRange

Answer
:cSt
andar
ddev
iat
ion
39.Whi
chmeasur
erepr
esent
sthev
aluet
hatoccur
smost

f
requent
lyi
nadat
aset
?

aMean

bMode

cMedi
an

dRange

Answer
:bMode

40.Whi
cht
ypeofgr
aphdi
spl
ayst
her
elat
ionshi
pbet
weent
wocont
inuousv
ari
abl
es?

aScat
terpl
ot

bBargr
aph

cLi
negr
aph

dHi
stogr
am

Answer
:aScat
terpl
ot

41.Whi
chmeasur
erepr
esent
sthedi
ff
erencebet
weent
hel
argestandsmal
l
estv
alues
i
nadataset
?

aMean

bMedi
an

cMode

dRange

Answer
:dRange

42.Whatdowecall
ani
nter
val
est
imat
ethatpr
ovi
desuswi
thanest
imat
edr
angef
oran
unknownpar
ameter
?

aConf
idencel
evel

bMar
ginofer
ror

cConf
idencei
nter
val
dSampl
i
nger
ror

Answer
:cConf
idencei
nter
val

43.Whicht
ypeofv
ari
abl
ecanonl
ytakeonspeci
fi
cval
uesandcannotbedi
vi
dedi
nto
small
eruni
ts?

aCont
inuousv
ari
abl
e

bDi
scr
etev
ari
abl
e

cNomi
nal
var
iabl
e

dOr
dinal
var
iabl
e

Answer
:bDi
scr
etev
ari
abl
e

44.Whatdowecal
lrandoml
yassi
gni
ngpar
ti
cipant
stodi
ff
erentgr
oupsi
nan
exper
iment
?

aRandom sampl
i
ng

bRandom assi
gnment

cRandom sel
ect
ion

dRandom al
l
ocat
ion

Answer
:bRandom assi
gnment

45.Whatdowecal lt
heassumpt i
onmadeinhypothesist
est
ingt
hatt
her
eisno
si
gnif
icantdi
ff
erenceorr
elat
ionshipbet
weenv
ariables?

aNul
lhy
pot
hesi
s

bAl
ter
nat
ivehy
pot
hesi
s

cResear
chhy
pot
hesi
s

dExper
iment
alhy
pot
hesi
s

Answer
:aNul
lhy
pot
hesi
s

46.I
nanexper
iment
,whatdowecal
lthev
ari
abl
ethati
smani
pul
atedbyt
her
esear
cher
?

aCont
rol
var
iabl
e

bDependentv
ari
abl
e
cI
ndependentv
ari
abl
e

dConf
oundi
ngv
ari
abl
e

Answer
:cI
ndependentv
ari
abl
e

47.Inanexper
iment,
whatdowecal l
thevari
abl
ethati
smeasur
edt
odet
ermi
nei
ts
rel
ati
onshi
pwiththei
ndependentv
ari
able?

aCont
rol
var
iabl
e

bDependentv
ari
abl
e

cI
ndependentv
ari
abl
e

dConf
oundi
ngv
ari
abl
e

Answer
:bDependentv
ari
abl
e

48.Whichstat
ist
icalt
esti
susedt
odet
ermi
nei
fther
eisanassoci
ati
onbet
weent
wo
categor
ical
vari
ables?

aT-
test

bANOVAt
est

cRegr
essi
onanal
ysi
s

dChi
-squar
etest

Answer
:dChi
-squar
etest

49.Whatdoescor
rel
ati
oncoef
fi
cientmeasur
e?

aAssoci
ati
onbet
weent
wocont
inuousv
ari
abl
es

bAssoci
ati
onbet
weent
wocat
egor
ical
var
iabl
es

cDi
ff
erencebet
weent
womeans

dDi
ff
erencebet
weent
wopr
opor
ti
ons

Answer
:aAssoci
ati
onbet
weent
wocont
inuousv
ari
abl
es

50.Whatdowecal
lthepr
ocessusedt
omakedeci
sionsaboutpopul
ati
onpar
amet
ers
basedonsampl
edata?

aHy
pot
hesi
stest
ing
bConf
idencei
nter
val
est
imat
ion

cAnal
ysi
sofv
ari
ance

dRegr
essi
onanal
ysi
s

Answer
:aHy
pot
hesi
stest
ing

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