CH 03

CHAPTER THREE
Descriptive Statistics
C 1. Statistical measures used to yield information about the middle of a group of

numbers are called _______.
E A. averages
Term B. measures of variability
C. measures of central tendency
D. Z scores
C 2. Which of the following is NOT a measure of central tendency?
E A. mean
Term B. median
C. variance
D. mode
69
70 Test Bank
A 3. The most frequently occurring value in a set of data is called the _______.
E A. mode
Term B. mean
C. median
D. coefficient of variation
A 4. Which of the following is an appropriate measure of central tendency for nominal

data?
E A. mode
Term B. mean
C. median
C 5. Which of the following is an appropriate measure of central tendency for ordinal

data?
E A. standard deviation
Term B. mean
C. median
C 6. The lowest appropriate level of measurement for the mean is _________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
B 7. The lowest appropriate level of measurement for the median is _________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
A 8. The lowest appropriate level of measurement for the mode is _________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
Chapter 3: Descriptive Statistics 71
C 9. The middle value in an ordered array of numbers is called the _______.
E A. mode
Term B. mean
C. median
B 10. Another term for average is _______.
E A. mode
Term B. mean
C. median
D. variance
C 11. The Greek letter usually refers to the _______.
E A. population standard deviation

Term B. sample variance
C. population mean
D. sample mean
A 12. The Greek letter usually refers to the _________.

C. population mean
D. sample mean
D 13. The notation X usually refers to the _______________.

C. population mean
D. sample mean
B 14. The notation S2 usually refers to the _______________.

C. population mean
D. sample mean
72 Test Bank
D 15. Which of the following is NOT a commonly used measure of variability?
M A. variance
Term B. standard deviation
C. mean absolute deviation
D. average deviation
A 16. The sum of deviations about the arithmetic mean is always equal to _______.
E A. zero
Term B. the variance
C. the mean absolute deviation
D. the standard deviation
C 17. The average of the squared deviations from the arithmetic mean is called the
_______.
M A. standard deviation
Term B. mean absolute deviation
C. variance
B 18. The sample variance is found by taking the square root of _______.
E A. the sample mean

Term B. the sample variance
C. the coefficient of variation
D. the mean absolute deviation
C 19. The lowest appropriate level of measurement for standard deviation is _________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
B 20. The lowest appropriate level of measurement for the Interquartile Range is
_________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
D 21. The number of standard deviations that a value (X) is above or below the mean is
the _________________.
M A. absolute deviation
Term B. coefficient of variation
C. interquartile range
D. Z score
D 22. If the mean of a distribution is greater than the median, then the distribution is
______.
M A. not skewed
Term B. symmetrical about its mean
C. skewed to the left
D. skewed to the right
C 23. If the median of a distribution is greater than mean, then the distribution is
_________.
M A. not skewed
Term B. symmetrical about its mean
C. skewed to the left
D. skewed to the right
D 24. The interquartile range is _____________.
E A. the largest value minus the least value

Term B. the ratio of the mean to the standard deviation
C. negative if the distribution is skewed to the left
D. Q3 - Q1
B 25. The five numbers used to construct a box and whisker plot are _______.
M A. the mean, standard deviation, Q1, Q3, and the coefficient of variation
Term B. Q1, Q2, Q3, the least value of X, and the largest value of X
C. the mean, standard deviation, least value of X, largest value of X, and Q 2
D. the coefficient of variation, IQR, mean, Q2, and mean absolute deviation
D 26. Which of the following is a measure of relative dispersion?
M A. standard deviation
Term B. interquartile range
C. mean absolute deviation
D. coefficient of dispersion
74 Test Bank
A 27. The empirical rule says that approximately what percentage of the values would be
within 2 standard deviations of the mean in a bell shaped set of data?
M A. 95%
Term B. 68%
C. 50%
D. almost all
B 28. The empirical rule says that approximately what percentage of the values would be
within 1 standard deviation of the mean in a bell shaped set of data?
M A. 95%
Term B. 68%
C. 50%
D. almost all
A 29. Chebyshev's Theorem says that how many values will be within 2 standard
deviations of the mean?
H A. at least 75%
Calc B. at least 68%
C. at least 95%
D. at least 89%
D 30. Chebyshev's Theorem says that the number of values within 3 standard deviations
of the mean will be _______.
M A. at least 75%
Calc B. at least 68%
C. at least 95%
D. at least 89%
B 31. A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 72.
What is the mean grade?
M A. 78
Calc B. 80
C. 72
D. 84
C 32. A statistics student made the following grades on 5 tests: 84, 78, 88, 72, and 72.
What is the median grade?
M A. 88
Calc B. 72
C. 78
D. 80
A 33. A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 82.
What is the mode?
E A. 78
Calc B. 80
C. 88
D. 84
D 34. A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The mean time required for this trip was _______.
M A. 35
Calc B. 41
C. 37.5
D. 38
A 35. A commuter travels many miles to work each morning. She has timed this trip 5
34, 39, 41, 35, and 41. The median time required for this trip was _______.
M A. 39
Calc B. 41
C. 37.5
D. 38
B 36. A commuter travels many miles to work each morning. She has timed this trip 5
34, 39, 41, 35, and 41. The modal time required for this trip was _______.
E A. 39
Calc B. 41
C. 37.5
D. 38
76 Test Bank
B 37. A commuter travels many miles to work each morning. She has timed this trip 5
44, 39, 41, 35, and 41. The mean time required for this trip was 40 minutes.
What is the variance for this sample data?
H A. 8.8
Calc B. 11
C. 0
D. 3
A 38. A commuter travels many miles to work each morning. She has timed this trip 5
What is the standard deviation for this sample data?
H A. 3.32
Calc B. 2.97
C. 1.73
D. 11
D 39. A commuter travels many miles to work each morning. She has timed this trip 5
What is the mean absolute deviation for this sample data?
H A. 0
Calc B. 12
C. 3
D. 2.4
D 40. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

the Batesville Bottling during the last operating year. A sample of six personnel
records produced the following data: 0, 2, 4, 7, 2, 9.
The mean number absences per employee is ____________.
M A. 3
BCalc B. 2
C. 5.5
D. 4
B 41. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

The modal number absences per employee is ____________.
E A. 3
BCalc B. 2
C. 5.5
D. 4
A 42. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

The median number absences per employee is ____________.
M A. 3
BCalc B. 2
C. 5.5
D. 4
A 43. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

The variance of the number absences per employee is ____________.
H A. 11.6
BCalc B. 9.67
C. 3.41
D. 3.11
C 44. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

The standard deviation of the number absences per employee is ____________.
H A. 11.6
BCalc B. 9.67
C. 3.41
D. 3.11
78 Test Bank
A 45. The mean life of a particular brand of light bulb is 1000 hours and the standard
deviation is 50 hours. It can be concluded that at least 75% of the bulbs will last
between _______.
H A. 900 and 1100 hours

BCalc B. 950 and 1050 hours
C. 850 and 1150 hours
D. 800 and 1200 hours
C 46. The mean life of a particular brand of light bulb is 1000 hours and the standard
deviation is 50 hours. It can be concluded that at least 89% of the bulbs will last
between _______.
H A. 900 and 1100 hours

BCalc B. 950 and 1050 hours
B 47. The mean life of a particular brand of light bulb is 1000 hours and the standard
deviation is 50 hours. Tests show that the life of the bulb is approximately
normally distributed. It can be concluded that approximately 68% of the bulbs will
last between _______.
M A. 900 and 1100 hours

Calc B. 950 and 1050 hours
A 48. Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
company's new model of automobile batteries. Life tests performed on a sample of
100 batteries indicated: (1) an average life of 75 months, (2) a standard deviation
of 5 months, and (3) battery life is approximately normally distributed.
Approximately 68% of the batteries will last between ________________.
M A. 70 and 80 months
BCalc B. 60 and 90 months
C. 65 and 85 months
D. 55 and 95 months
C 49. Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
C. 65 and 85 months
D. 55 and 95 months
B 50. Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
C. 65 and 85 months
D. 55 and 95 months
C 51. Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
of 5 months, and (3) battery life is approximately normally distributed. What
percentage of the batteries will fail within the first 65 months of use?
H A. 0.5%
BCalc B. 1%
C. 2.5%
D. 5%
B 52. The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. If a histogram of the data shows the it takes on a mound
shape, the empirical rule says that approximately 95% of the graduates would have
a starting salary between _______.
M A. 23,000 and 27,000

BCalc B. 21,000 and 29,000
C. 19,000 and 31,000
D. 24,000 and 26,000
80 Test Bank
A 53. The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. If a histogram of the data shows the it takes on a mound
shape, the empirical rule says that approximately 68% of the graduates would have
a starting salary between _______.
M A. 23,000 and 27,000

BCalc B. 21,000 and 29,000
C. 19,000 and 31,000
D. 24,000 and 26,000
A 54. The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. A histogram of the data shows the shape to be very erratic so
Chebyshev's Theorem should be used. How many of the graduates would have a
starting salary between 21,000 and 29,000?
H A. at least 75%
BCalc B. at least 89%
C. at least 68%
D. at least 95%
B 55. The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. A histogram of the data shows the shape to be very erratic so
Chebyshev's Theorem should be used. How many of the graduates would have a
starting salary between 19,000 and 31,000?
H A. at least 75%
BCalc B. at least 89%
C. at least 68%
D. at least 95%
B 56. The ages of students in a class have been put into the frequency distribution below.
Age Number of Students
18 3
19 5
20 28
21 4
What is the average age of these students?
M A. 19.50
Calc B. 19.85
C. 20.00
D. 28.00
B 57. The ages of students in a class have been put into the frequency distribution below.
18 3
19 5
20 28
21 4
What is the standard deviation for this (population) set of data?
H A. 0.494
Calc B. 0.703
C. 1.12
D. 1.25
D 58. The ages of students in a class have been put into the frequency distribution below.
18 3
19 5
20 28
21 4
What is the median age of these students?
M A. 18
Calc B. 19
C. 19.5
D. 20
C 59. The ages of students in a class have been put into the frequency distribution below.
18 3
19 5
20 28
21 4
What is the modal age of these students?
E A. 18
Calc B. 19
C. 20
D. 21
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A 60. The mean, median, and mode for the following set of data are all the same value
(20). Data: 18, 19, 20, 20, 21, 22. If the highest number were changed from 22
to 322, which of the following would be most affected?
M A. mean
App B. median
C. mode
D. sample size
C 61. In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
Q1, Q2, and Q3 for 577 motorcycle dealers' current ratios were 1.3, 1.6 and 2.9,
respectively. From this we can conclude that __________________.
M A. 68% of these dealers had current ratios between 1.3 and 2.9
BApp B. 95% of these dealers had current ratios between 1.3 and 2.9
C. 50% of these dealers had current ratios between 1.3 and 2.9
D. 75% of these dealers had current ratios between 1.3 and 2.9
C 62. An instructor is evaluating the performance of students on a test. He records the

number of points that each student missed and created a frequency distribution.
This is provided below:
Points missed Number of students
0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the mean number of points missed?
H A. 20
Calc B. 25
C. 29
D. 30

0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the variance for this population?
H A. 11.43
Calc B. 135.17
C. 130.67
D. 200
D 64. In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
M A. 68% of these dealers had current ratios of 1.6 or less

BApp B. 95% of these dealers had current ratios of 2.9 or less
C. 50% of these dealers had current ratios of 2.9 or more
D. 75% of these dealers had current ratios of 1.3 or more
A 65. An instructor is evaluating the performance of students on a test. He records the

0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the standard deviation for this population?
H A. 11.43
Calc B. 14.14
C. 11.63
D. 135.17
84 Test Bank

0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
If this is considered a sample, what is the standard deviation?
H A. 11.43
Calc B. 14.14
C. 11.63
D. 135.17
D 67. Which of the following is always true?
E A. the median is always one-half of the mean

Term B. the mode is always greater than the mean
C. the mean is always equal to the median
D. the standard deviation is always the square root of the variance
A 68. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system, and orders an inspection of "each and every
payroll voucher issued since January 1, 1993." Each payroll voucher was
inspected and the following frequency distribution was compiled.
Errors Per Voucher Number of Vouchers
0-under 2 500
2-under 4 400
4-under 6 300
6-under 8 200
8-under 10 100
The mean number of errors per voucher is __________.
H A. 3.67
BCalc B. 5
C. 750
D. 300
A 69. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system, and orders an inspection of "each and every
payroll voucher issued since January 1, 1993." Each payroll voucher was
inspected and the following frequency distribution was compiled.
Errors Per Voucher Number of Vouchers
0-under 2 500
2-under 4 400
4-under 6 300
6-under 8 200
8-under 10 100
The distribution of errors per voucher is __________.
M A. symmetrical with respect to its mean

BApp B. skewed to the right
C. not skewed
D. negatively skewed
C 70. A sales manager has sampled past sales records to determine how many
refrigerators are sold each day. Daily records for a sample of 10 days have been
selected. The sales on these days are: 0, 4, 4, 2, 1, 3, 4, 5, 2, 7. What is the
mean daily sales?
M A. 2
BCalc B. 4
C. 3.2
D. 10
C 71. A sales manager has sampled past sales records to determine how many
selected. The sales on these days are: 0, 4, 3, 2, 1, 3, 5, 5, 2, 5. What is the
median daily sales?
M A. 3.5
BCalc B. 2
C. 3
D. 4
86 Test Bank
D 72. A sales manager has sampled past sales records to determine how many
selected. The sales on these days are: 0, 4, 4, 2, 1, 3, 4, 5, 2, 7. The mode of
data set is ______.
E A. 3.5
BCalc B. 2
C. 3
D. 4
B 73. A sales manager has sampled past sales records to determine how many televisions
are sold each day. Daily records for a sample of 5 days have been selected. The
sales on these days are: 2, 4, 5, 2, 7. What is the mean for this set of data?
E A. 2
BCalc B. 4
C. 5
D. 4.5
A 74. A sales manager has sampled past sales records to determine how many televisions
sales on these days are: 2, 4, 5, 2, 7. What is the mode for this set of data?
E A. 2
BCalc B. 4
C. 5
D. 4.5
A 75. In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
E A. 50% of these dealers had current ratios of 1.6 or less

BApp B. 68% of these dealers had current ratios of 1.3 or less
C. 50% of these dealers had current ratios of 2.9 or more
D. 95% of these dealers had current ratios of 1.3 or more
C 76. A sales manager has sampled past sales records to determine how many televisions
sales on these days are: 2, 4, 5, 2, 7. What is the standard deviation for this set of
sample data?
M A. 2
BCalc B. 0
C. 2.12
D. 4.5
sales on these days are: 2, 4, 5, 2, 7. What is the variance for this set of sample
data?
M A. 4
BCalc B. 4.5
C. 2
D. 0
sales on these days are: 2, 4, 5, 2, 7. What is the median for this set of data?
E A. 2
BCalc B. 4
C. 5
D. 4.5
C 79. A sales manager has sampled past sales records to determine how many televisions
sales on these days are: 2, 4, 5, 2, 7. What is the mean absolute deviation for this
set of data?
M A. 0
BCalc B. 2
C. 1.6
D. 4
88 Test Bank
D 80. Consider the following 3 numbers: 10, 20, 30. In calculating measures of central
tendency and variability for this set of data, which of the following is true?
M A. you can calculate the mean only if you know if this is a sample or a population
App B. you can calculate the median only if you know if this is a sample or a
population
C. you can calculate the mode only if you know if this is a sample or a population
D. you can calculate the variance only if you know if this is a sample or a
population
C 81. Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the
following performance statistics for two new stocks.
Rate of Return
Stock Mean Standard Deviation
Salas Products, Inc. 15% 5%
Hot Boards, Inc. 20% 5%
The coefficient of variation for Salas Products, Inc. is __________.
E A. 300%
BCalc B. 100%
C. 33%
D. 5%
B 82. The following box and whisker plot was constructed for the age of accounts
receivable.
The box and whisker plot reveals that the accounts receivable ages are _______.
E A. skewed to the left

C. not skewed
D. normally distributed
A 83. The following box and whisker plot was constructed for the age of accounts
receivable.

C. not skewed
A 84. The following frequency distribution was constructed for the age of accounts
receivable.
The frequency distribution reveals that the accounts receivable ages are _______.

C. not skewed
B 85. The following frequency distribution was constructed for the age of accounts
receivable.

C. not skewed
90 Test Bank
B 86. Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the
following performance statistics for two new stocks.
Rate of Return
Stock Mean Standard Deviation
Salas Products, Inc. 15% 5%
Hot Boards, Inc. 20% 5%
The coefficient of variation for Salas Products, Inc. is __________.
M A. equal to the coefficient of variation for Hot Boards

BCalc B. greater than the coefficient of variation for Hot Boards
C. less than the coefficient of variation for Hot Boards
D. 25%
D 87. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

reviewing the employee training programs of AFB banks. His staff compiled the
following table of regional statistics on teller training hours.
Southeast Region Southwest Region
Mean 20 28
Median 20 20
Mode 20 21
Standard Deviation 5 7
What can David conclude from these statistics?
M A. the Southeast distribution is skewed to the left

BApp B. the Southeast distribution is skewed to the right
C. the Southwest distribution is skewed to the left
D. the Southwest distribution is skewed to the right
A 88. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

Mean 20 28
Median 20 20
Mode 20 21
M A. the Southwest distribution has the greater dispersion

BApp B. the Southwest distribution is skewed to the left
C. the Southeast distribution has the greater dispersion
D. the Southeast distribution is skewed to the left
D 89. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

Mean 20 28
Median 20 20
Mode 20 21
M A. the Southwest distribution has the greater relative dispersion

BApp B. the Southwest distribution is skewed to the left
C. the Southeast distribution has the greater relative dispersion
D. the Southeast distribution is not skewed
92 Test Bank
D 90. Manuel Banales, Marketing Director of Plano Power Plants, Inc.s Electrical
Division, is leading a study to assess the relative importance of product features.
Two items on a survey questionnaire distributed to 100 of Planos customers
asked them to rate the importance of ease of maintenance and efficiency of
operation on a scale of 1 to 10 (with 1 meaning not important and 10 meaning
highly important). His staff assembled the following statistics on these two
items.
Ease of Maintenance Efficiency of Operation
Mean 7.5 6.0
Median 8.5 5.5
Mode 9.0 4.5
Standard Deviation 1.5 2.5
What can Manuel conclude from these statistics?
M A. the Ease of Maintenance distribution is skewed to the right

BApp B. the Ease of Maintenance distribution is not skewed
C. the Efficiency of Operation distribution is skewed to the left
D. the Efficiency of Operation distribution is positively skewed
B 91. Manuel Banales, Marketing Director of Plano Power Plants, Inc.s Electrical
items.
Mean 7.5 6.0
Median 8.5 5.5
Mode 9.0 4.5
M A. the Ease of Maintenance distribution has more relative dispersion

BApp B. the Ease of Maintenance distribution has less dispersion
C. the Efficiency of Operation distribution is skewed to the left
D. the Efficiency of Operation distribution has less dispersion
A 92. Manuel Banales, Marketing Director of Plano Power Plants, Inc.s Electrical
items.
Mean 7.5 6.0
Median 8.5 5.5
Mode 9.0 4.5
M A. Ease of Maintenance is more important than Efficiency of Operation

BApp B. Efficiency of Operation is more important than Ease of Maintenance
C. Efficiency of Operation and Ease of Maintenance are equally important
D. the Efficiency of Operation distribution has less dispersion
B 93. In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
Q1, Q2, and Q3 for 2,037 gasoline service stations' sales to inventory ratios were
20.8, 33.4, and 53.8, respectively. From this we can conclude that ____________.
E A. 68% of these service stations had sales to inventory ratios of 20.8 or less
BApp B. 50% of these service stations had sales to inventory ratios of 33.4 or less
C. 50% of these service stations had sales to inventory ratios of 53.8 or more
D. 95% of these service stations had sales to inventory ratios of 20.8 or more
A 94. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the
service level provided to walk-in customers. Accordingly, his staff prepared the
following distribution of waiting time for walk-in customers.
Waiting Time Number of Customers
(in minutes)
0-under 2 60
2-under 4 30
4-under 6 10
The mean waiting time for this sample of walk-in customers is _________.
H A. 2 minutes
BCalc B. 66.67 minutes
C. 33.33 minutes
D. 3 minutes
94 Test Bank
B 95. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

service level provided to walk-in customers. Accordingly, his staff prepared the
following distribution of waiting time for walk-in customers.
(in minutes)
0-under 2 60
2-under 4 30
4-under 6 10
The standard deviation of waiting time for this sample of walk-in customers is
______.
H A. 2 minutes
BCalc B. 1.35 minutes
C. 1.82 minutes
D. 1.80 minutes
C 96. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

reviewing the employee training programs of AFB banks. His staff reports several
statistics for teller training hours. The mean is 20 hours, the standard deviation is
5 hours, the median is 15 hours, and mode is 10 hours.
The Pearsonian coefficient of skewness for teller training hours is __________.
M A. 6
BCalc B. 1
C. 3
D. 4
C 97. The following box and whisker plot was constructed for the age of accounts
receivable.

C. not skewed
C 98. The following frequency distribution was constructed for the age of accounts
receivable.

C. not skewed
D. positively skewed
A 99. Which Excel function returns the second quartile?
E A. median()
Term B. mode()
C. max()
D. quart2()
B 100. Which Excel function returns the population standard deviation?
M A. pstdev()
Term B. stdevp()
C. stdev()
D. stdevpop()
C 101. Which Excel function returns the sample standard deviation?
M A. sstdev()
Term B. stdevs()
C. stdev()
D. stdevsample()
D 102. Which Excel function returns the arithmetic mean?
M A. amean()
Term B. meana()
C. mean()
D. average()
96 Test Bank
103. Albert Abbasi, VP of Operations at Ingleside International Bank (IIB), is

evaluating the service level provided to walk-in customers. Accordingly, his staff
prepared the following distribution of waiting time for walk-in customers.
(in minutes)
0-under 2 120
2-under 4 40
4-under 6 25
6-under 8 10
8-under 10 5
In a recent survey, 70% of the walk-in customers indicated that waiting four
minutes (or more) was unacceptable. Presently, IIB has no direct competitors, but
a competing bank is under construction across the street.
Discuss the managerial and business implications of this situation. What

alternatives should Albert consider? What graphic depiction should he choose for
his presentation to the banks board of directors?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
104. Angelina Arnott, Director of National Industrial Sales, is concerned by a

deteriorating sales trend. Specifically, the number of customers is stable at 1,500,
but they are purchasing less each year. She orders her staff to search for causes of
the downward trend by surveying all 1,500 industrial customers. One question on
the survey asked the customers to rate Merchandise is delivered on time on a
scale of 1 to 5, with 1 meaning never and 5 meaning always.
Merchandise Delivered On Time Number of Customers
1 100
2 200
3 300
4 700
5 100
No Response 100
Discuss the managerial and business implications of Angelinas situation. Identify

some possible causes of the trend. What corrective actions are available for each
cause? What graphic depiction(s) should she choose for her report to the VP of
Marketing?
M _________________________________________________________________
BApp _________________________________________________________________
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98 Test Bank
105. Annualized rates of return were calculated from closing prices of Caterpillar
(CAT) and General Mills (GIS) common stock. Descriptive statistics of these
rates of return presented in the following table.
CAT GIS
Mean 0.233621705 0.139744793
Standard Error 0.162775427 0.097267227
Median 0.194367839 0.122108626
Mode #N/A 0
Sample Variance 1.19231278 0.425741105
Kurtosis 6.478114897 -0.59713571
Skewness 1.647492156 0.058132445
Range 6.669350226 2.710777183
Minimum -1.770866463 -1.256246317
Maximum 4.898483762 1.454530866
Sum 10.51297674 6.288515695
Count 45 45
Describe what these descriptive statistics reveal about the market performance of
these two stocks.
M
BApp
106. Descriptive statistics of daily sales ($'s) were calculated for two Bob's Quick Shops
-- the Southside store, and the Midcity store.
Southside Midcity
Mean 5025.622 2733.333
Standard Error 118.306 249.1417
Median 5110.73 2000
Mode #N/A 1000
Sample Variance 839778 3724294
Kurtosis -0.64387 -0.49322
Skewness -0.05517 0.860968
Range 3949.172 6000
Minimum 3133.362 1000
Maximum 7082.534 7000
Sum 301537.3 164000
Count 60 60
Describe what these descriptivie statistics indicate about daily sales at these two
stores.
M
BApp
100 Test Bank

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CHAPTER THREE

C 1. Statistical measures used to yield information about the middle of a group of

C 2. Which of the following is NOT a measure of central tendency?

A 4. Which of the following is an appropriate measure of central tendency for nominal

C 5. Which of the following is an appropriate measure of central tendency for ordinal

C 6. The lowest appropriate level of measurement for the mean is _________.

B 7. The lowest appropriate level of measurement for the median is _________.

A 8. The lowest appropriate level of measurement for the mode is _________.

C 9. The middle value in an ordered array of numbers is called the _______.

B 10. Another term for average is _______.

E A. population standard deviation

E A. population standard deviation

D 13. The notation X usually refers to the _______________.

E A. population standard deviation

B 14. The notation S2 usually refers to the _______________.

E A. population standard deviation

D 15. Which of the following is NOT a commonly used measure of variability?

E A. the sample mean

D 24. The interquartile range is _____________.

E A. the largest value minus the least value

D 26. Which of the following is a measure of relative dispersion?

D 40. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

B 41. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

A 42. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

A 43. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

C 44. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at

H A. 900 and 1100 hours

H A. 900 and 1100 hours

M A. 900 and 1100 hours

M A. 23,000 and 27,000

M A. 23,000 and 27,000

C 62. An instructor is evaluating the performance of students on a test. He records the

C 63. An instructor is evaluating the performance of students on a test. He records the

M A. 68% of these dealers had current ratios of 1.6 or less

A 65. An instructor is evaluating the performance of students on a test. He records the

C 66. An instructor is evaluating the performance of students on a test. He records the

D 67. Which of the following is always true?

E A. the median is always one-half of the mean

M A. symmetrical with respect to its mean

E A. 50% of these dealers had current ratios of 1.6 or less

E A. skewed to the left

E A. skewed to the left

E A. skewed to the left

E A. skewed to the left

M A. equal to the coefficient of variation for Hot Boards

D 87. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

M A. the Southeast distribution is skewed to the left

A 88. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

M A. the Southwest distribution has the greater dispersion

D 89. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

M A. the Southwest distribution has the greater relative dispersion

M A. the Ease of Maintenance distribution is skewed to the right

M A. the Ease of Maintenance distribution has more relative dispersion

M A. Ease of Maintenance is more important than Efficiency of Operation

B 95. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

C 96. David Desreumaux, VP of Human Resources of American First Banks (AFB), is

E A. skewed to the left

E A. skewed to the left

A 99. Which Excel function returns the second quartile?

B 100. Which Excel function returns the population standard deviation?

C 101. Which Excel function returns the sample standard deviation?

D 102. Which Excel function returns the arithmetic mean?

103. Albert Abbasi, VP of Operations at Ingleside International Bank (IIB), is