THE MINISTRY OF EDUCATION OF THE REPUBLIC OF AZERBAIJAN

AZERBAIJAN STATE UNIVERSITY OF ECONOMICS

MBA Program of MBA Department

Statistics for Business and Economics
Lecturer:

Khayaladdin Tagiyev, PhD student

Question card 1
1.
2.
3.
4.
5.

What is the mode and the mean for the set of numbers? 4, 9, 8, 2, 16, 4, 4, 8, 9, 6?
How is frequency distribution calculated?
What is the difference between a statistic and a parameter?
What is the difference between a one-tail test and a two-tail test?
What are the differences among the mean, median, and mode, and what are the advantages
and disadvantages of each?

Question card 2
1. If X and Y are any random variables with Cov(X, Y) = 0.25, Var(X)= 0.36, and Var(Y)=
0.49, then the coefficient of correlation is?
2. How is frequency distribution calculated?
3. What are the differences among the mean, median, and mode, and what are the advantages
and disadvantages of each?
4. What is the difference between a statistic and a parameter?
5. What is the difference between a one-tail test and a two-tail test?
Question card 3
1. The presidents policy on domestic affairs received a 65% approval rating in a recent poll.
The margin of error was given as 0.035. What sample size was used for this poll if we
assume a 95% confidence level?
2.
3.
4.
5.

What is the difference between a time-series plot and a scatter plot?

What is the difference between a simple event and a joint event?
What are the four measurement scales?
How do histograms and polygons differ in their construction and use?

Question card 4
1. Given a population with a mean of = 100 and a variance of 2 = 81, the central limit
theorem applies when the sample size is n 25. A random sample of size n = 25 is obtained.
What are the mean and variance of the sampling distribution for the sample means?
2. What are the four measurement scales?
3. How do histograms and polygons differ in their construction and use?
4. What is the difference between a time-series plot and a scatter plot?
5. What is the difference between a simple event and a joint event?

Question card 5
1. If, in a sample of n=16 selected from a normal population, X-bar=56 and S=12, what is the
value of tstat if you are testing the null hypothesis H0: M=50?
2. How is stem-and-leaf display calculated?
3. Why can you never really have 100% confidence of correctly estimating the population
characteristic of interest?
4. What is the difference between a discrete numerical variable and a continuous numerical
variable?
5. What is meant by a p-value?

Question card 6
1. The quality-control manager at a light bulb factory needs to determine whether the mean
life of a large shipment of light bulbs is equal to 375 hours. The population standard
deviation is 100 hours. A random sample of 64 light bulbs indicates a sample mean life of
350 hours. At the 0.05 level of significance, is there evidence that the mean life is different
from 375 hours?
2. What is the difference between a discrete numerical variable and a continuous numerical
variable?
3. What is meant by a p-value?
4. How is stem-and-leaf display calculated?
5. Why can you never really have 100% confidence of correctly estimating the population
characteristic of interest?

Question card 7
1. Professor Anderson graduated from the University of Michigan with a code value = 1 while
Professor Jackson graduated from Michigan State with a code value = 2. The scale of
measurement likely represented by this information is:
2.
3.
4.
5.

What is the meaning of ordered array?

What is the difference between a null hypothesis H0, and an alternative hypothesis H1?
What is the name of table that describes two categorical variables?
If the mean is smaller than the median which shape of distribution will happen?

Question card 8
1. A multiple choice quiz has five questions, each with five answers, A through E. Assume
you just guess on all of the questions. What is the probability that you guessed on all five
questions right?
2.
3.
4.
5.

What is the name of table that describes two categorical variables?

If the mean is smaller than the median which shape of distribution will happen?
What is the meaning of ordered array?
What is the difference between a null hypothesis H0, and an alternative hypothesis H1?

Question card 9
1. If P(A) = 0.3, P(B) = 0.4, and P(A and B) = 0.2, are A and B independent?
2. What are the differences among the range and interquartile range, and what are the
advantages and disadvantages of each?
3. How can you use the general addition rule to find the probability of occurrence of event A
or B?
4. Which distribution is histogram used for?
5. What is the formulas of geometric mean and geometric mean rate of return?

Question card 10
1. The quality control manager at a light bulb factory needs to estimate the mean life of a
large shipment of light bulbs. The standard deviation is 100 hours. A random sample of 64
light bulbs indicated a sample mean life of 350 hours. Construct a 95% confidence interval
estimate for the population mean life of light bulbs in this shipment?
2. Which distribution is histogram used for?

3. What is the formulas of geometric mean and geometric mean rate of return?
4. What are the differences among the range and interquartile range, and what are the
advantages and disadvantages of each?
5. How can you use the general addition rule to find the probability of occurrence of event A
or B?

Question card 11
1. If n=200 and X=50, construct a 95% confidence interval estimate for the population
proportion.
2. How do the covariance and the coefficient of correlation differ?
3. What is difference between binomial and hypergeometric distributions?
4. What are the differences among variance, standard deviation, and coefficient of variation,
and what are the advantages and disadvantages of each?
5. How can we determine the required sample size for the mean (by using sampling error)?

Question card 12
1. A survey is planned to determine the mean annual family medical expenses of employees
of a large company. The management of the company wishes to be 95% confident that the
sample mean is correct to within $50 of the population mean annual family medical
expenses. A previous study indicates that the standard deviation is approximately $400.
How large a sample is necessary?
2. What are the differences among variance, standard deviation, and coefficient of variation,
and what are the advantages and disadvantages of each?
3. How can we determine the required sample size for the mean (by using sampling error)?
4. How do the covariance and the coefficient of correlation differ?
5. What is difference between binomial and hypergeometric distributions?

Question card 13
1. Two investments, X and Y, have the following characteristics: E(X) = 5, E(Y) = 10, Var(X)
= 20, Var(Y) = 40, and Var(X, Y) = 60. If the weight of portfolio assets assigned to
investment X is 0.4, compute the portfolio risk.
2. What kind of shapes of distribution are there and their descriptions?
3. What
is
the
difference
between
portfolio
expected
and portfolio risk (write the formulas)?

return

4. How does the empirical rule help explain the ways in which the values in a set of numerical
data cluster and distribute?
5. What is formula of Bayes Theorem?

Question card 14
1. If the mean of a population is 250 and its standard deviation is 20, approximately what
proportion of observations is in interval between 190 and 310?
2. How does the empirical rule help explain the ways in which the values in a set of numerical
data cluster and distribute?
3. What is formula of Bayes Theorem?
4. What kind of shapes of distribution are there and their descriptions?
5. What
is
the
difference
between
portfolio
expected
return
and portfolio risk (write the formulas)?

Question card 15
1. The following is a set of data for a population with N=10: 7, 5, 6, 6, 6, 4, 8, 6, 9, 3. Compute
the population standard deviation?
2. What are the differences between a priori probability, empirical probability, and subjective
probability?
3. What are the formulas of binomial distribution and its mean and standard deviation?
4. What does five-number summary mean and its explanation?
5. When are you able to use the t distribution to develop the confidence interval estimate for
the mean?

Question card 16
1. A dormitory on campus houses 200 students. 120 are male, 50 are upper division students,
and 40 are upper division male students. A student is selected at random. The probability
of selecting a lower division student, given the student is a female, is:
2. What does five-number summary mean and its explanation?
3. When are you able to use the t distribution to develop the confidence interval estimate for
the mean?
4. What are the differences between a priori probability, empirical probability, and subjective
probability?
5. What are the formulas of binomial distribution and its mean and standard deviation?

Question card 17
1. The probability that an employee at a company eats lunch at the company cafeteria is 0.23,
and the probability that employee is female is 0.52. Assume the probability that an
employee eats lunch at the company cafeteria and is female is 0.11. What is the probability
that a randomly chosen employee either eats lunch at the company cafeteria or is female?
2. What is the difference between mutually exclusive events and collectively exhaustive
events?
3. What is the difference between probability sampling and non-probability sampling?
4. What is formula of variance of the sum of two random variables?
5. What is the difference between sampling distribution and sample distribution?

Question card 18
1. A stationery store wants to estimate the mean retail value of greeting cards that it has in its
inventory. A random sample of 100 greeting cards indicates a mean value of $2.55 and a
standard deviation of $0.44. Assuming a normal distribution, construct a 95% confidence
interval estimate for the mean value of all greeting cards in the stores inventory?
2. What is formula of variance of the sum of two random variables?
3. What is the difference between sampling distribution and sample distribution?
4. What is the difference between mutually exclusive events and collectively exhaustive
events?
5. What is the difference between probability sampling and non-probability sampling?

Question card 19
1. The speed in which the home page of a website is downloaded is an important quality
characteristic of that website. Suppose that the mean time to download the home page for
the Internal Revenue Service is 1.2 seconds. Suppose that the download time is normally
distributed, with a standard deviation of 0.2 second. What is the probability that a download
time is less than 2 seconds?
2. What is the probability under the curve in bell-shaped in normal distribution?
3. Why does the standard error of the mean decrease as the sample size, n increases?
4. If events A and B are independent what happens?
5. What are the formulas of poisson distribution and its characteristics?

Question card 20
1. An orange juice producer buys oranges from a large orange grove that has one variety of
orange. The amount of juice squeezed from these oranges is approximately normally
distributed, with a mean of 4.70 ounces and a standard deviation of 0.40 ounce. Suppose
that you select a sample of 25 oranges. What is the probability that the sample mean amount
of juice will be at least 4.60 ounces?
2. If events A and B are independent what happens?
3. What are the formulas of poisson distribution and its characteristics?
4. What is the probability under the curve in bell-shaped in normal distribution?
5. Why does the standard error of the mean decrease as the sample size, n increases?

Question card 21
1. An orange juice producer buys all his oranges from a large orange grove. The amount of
juice squeezed from each of these oranges is approximately normally distributed, with a
mean of 4.70 ounces and a standard deviation of 0.40 ounce. What is the probability that a
randomly selected orange will contain between 4.70 and 5.00 ounces of juice?
2. What is the meaning of the expected value of a probability distribution?
3. Why is the sample mean an unbiased estimator of the population mean?
4. What is the formula of the conditional probability of A given that B has occurred?
5. Under what circumstances does the sampling distribution of the proportion approximately
follow the normal distribution?

Question card 22
1. In examining the invoices issued by a company, an auditor finds that the dollar amounts of
invoices have a mean of $1,732 and a standard deviation of $298. What is the probability
that for a sample of 45 invoices, the average invoice is greater than $1,800?
2. What is the formula of the conditional probability of A given that B has occurred?
3. Under what circumstances does the sampling distribution of the proportion approximately
follow the normal distribution?
4. What is the meaning of the expected value of a probability distribution?
5. Why is the sample mean an unbiased estimator of the population mean?

Question card 23
1. Tobys Trucking Company determined that the distance traveled per truck per year is
normally distributed, with a mean of 50 thousand miles and a standard deviation of 12
thousand miles. What proportion of trucks can be expected to travel between 34 and 50
thousand miles in a year?
2. What is the difference between permutations and combinations?
3. What is continues uniform distribution and its characteristics?
4. What are the basic theoretical properties of the normal distribution?
5. How many discrete probability distributions are there and their names?

Question card 24
1. The following table contains the probability distribution for the number of traffic accidents
daily in a small city:
Number of accidents daily (X)
P(X=xi)
0
0.1
1
0.2
2
0.45
3
0.15
4
0.05
5
0.05
Compute the mean number of accidents per day?
2.
3.
4.
5.

What are the basic theoretical properties of the normal distribution?

How many discrete probability distributions are there and their names?
What is the difference between permutations and combinations?
What is continues uniform distribution and its characteristics?
Question card 25

1. The time between arrivals of customers at a bank during the noon-to-1 P.M. hour has a
uniform distribution between 0 to 120 seconds. What is the probability that the time
between the arrival of two customers will be between 10 and 30 seconds?
2. What is formula of variance of a discrete random variable?
3. What is the transformation formula of normal probability density function?
4. What is the meaning of the expected value of a probability distribution?
5. What is the probability under the curve in bell-shaped in normal distribution?

Note:
Only 3 questions (2 theoretical and 1 practical questions) out of 5 questions will be
answered;
Each question from 2 theoretical questions will be evaluated as 15 points;
1 practical question will be evaluated as 20 points.