Management Quizz

CHAPTER FOUR
Probability
1. State whether the following question provided is qualitative or quantitative data and
indicate the measurement scale appropriate -Are you a male or female?
a. Qualitative, ratio
b. Quantitative, ratio
c. Qualitative, nominal
d. Quantitative, ordinal
2. State whether the following question provided is qualitative or quantitative data and
indicate the measurement scale appropriate - How long have you been in your present
job or position
a. Qualitative, ratio
b. Quantitative, ratio
c. Qualitative, nominal
d. Quantitative, ordinal
• 2. State whether the following question provided is qualitative or quantitative data

and indicates the measurement scale appropriate - What is your age?
– Qualitative, ratio
– Quantitative, ratio
– Qualitative, nominal
– Quantitative, ordinal
The Wall Street Journal subscriber survey (October 13, 2013) asked 46 questions about
subscriber characteristics and interest. State whether each of the following questions
provided qualitative or quantitative data and indicate the measurement scale appropriate for
each.
a) What is your age?
b) Are you male or female?
c) When did you first start reading the WSJ? High school, college, early career, mid-
career,
late career, or retirement?
d) How long have you been in your present job or position?
e) What type of vehicle are you considering for your next purchase? Nine response
categories include sedan, sports car, SUV, minivan, and so on.
Ans a). Age: Quantitative; ratio scale of measurement

b). Gender: Qualitative; nominal scale of measurement
c). When start reading WSJ? Qualitative; ordinal scale of measurement
since the responses can be ordered from earliest (high school) to latest (retirement)
d). How long in job? Quantitative; ratio scale of measurement
e). Type of vehicle: Qualitative; nominal scale of measurement
12. When outliers are present in the data set, the ________ is the best choice to measure
central tendency.
A) median B) standard deviation C) mean D) mode
E) none of the above
3. What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15}
a) 12 b) 8 c) 7 d) 7.5
4. The hourly wages of a sample of 130 system analysts are given below.
mean = 60 range = 20
mode = 73 variance = 324
median = 74
The coefficient of variation equals
a. 0.30%
b. 30%
c. 5.4%
d. 54%
5. The variance of a sample of 169 observations equals 576. The standard deviation of the
sample equals
a. 13
b. 24
c. 576
d. 28,461
6. The median of a sample will always equal the
a. mode
b. mean
c. 50th percentile
d. all of the above answers are correct
7. A sample selected in such a manner that each sample of size n has the same probability of
being selected is
a. a convenience sample
b. a judgment sample
c. nonprobabilistic sampling
d. a simple random sample
8. Which of the following sampling methods is a probabilistic sampling method?
a. judgment sampling
b. convenience sampling
c. cluster sampling
d. None of these alternatives is correct.
9. An uncertain future event affecting the consequence, or payoff, associated with a decision is
known as
a. unconditional probability
b. unknown probability
c. chance event
d. uncertain probability
10. Nodes indicating points where a decision is made are known as
a. decision nodes
b. chance nodes
c. marginal nodes
d. conditional nodes
11. In computing an expected value (EV), the weights are
a. decision alternative probabilities
b. in pounds or some unit of weight
c. in dollars or some units of currency
d. the state-of-nature probabilities
12. Below you are given a payoff table involving three states of nature and two decision
alternatives.
Decision States of Nature
Alternative S1 S2 S3
A 80 45 -20
B 40 50 15
The probability that S1 will occur is 0.1; the probability that S2 will occur is 0.6. The
recommended decision based on the expected value criterion is
a. A
b. B
c. Both alternatives are the same.
13. The degrees of freedom for a contingency table with 6 rows and 3 columns is
a. 18
b. 15
c. 6
d. 10
14. If the coefficient of determination is a positive value, then the coefficient of correlation
a. must also be positive
b. must be zero
c. can be either negative or positive
d. must be larger than 1
15. Regression analysis is a statistical procedure for developing a mathematical equation that
describes how
a. one independent and one or more dependent variables are related
b. several independent and several dependent variables are related
c. one dependent and one or more independent variables are related
16. Given below are five observations collected in a regression study on two variables x
(independent variable) and y (dependent variable). Develop the least squares estimated
regression equation
x y
10 7
20 5
30 4
40 2
50 1
a. Y = 8.3-0.15x
b. Y= 9+0.15x
c. Y= 8.3+0.15x
d. 9-0.15x
17. As the sample size increases, the margin of error
a. increases
b. decreases
c. stays the same
d. increases or decreases depending on the size of the mean
18. In computing the standard error of the mean, the finite population correction factor is used
when
a. N/n > 0.05
b. N/n 0.05
c. n/N > 0.05
d. n/N 30
19. Z is a standard normal random variable. What is the value of Z if the area to the right of Z is
0.9803?
a. -2.06
b. 0.4803
c. 0.0997
d. 3.06
20. For a standard normal distribution, the probability of obtaining a z value between -2.4 to -2.0
is
a. 0.4000
b. 0.0146
c. 0.0400
d. 0.5000
21. For a standard normal distribution, the probability of obtaining a z value of less than 1.6 is
a. 0.1600
b. 0.0160
c. 0.0016
d. 0.9452
22. The number of electrical outages in a city varies from day to day. Assume that the number of
electrical outages (x) in the city has the following probability distribution.
x f(x)
0 0.80
1 0.15
2 0.04
3 0.01
The mean and the standard deviation for the number of electrical outages (respectively) are
a. 2.6 and 5.77
b. 0.26 and 0.577
c. 3 and 0.01
d. 0 and 0.8
23. Assume that you have a binomial experiment with p = 0.4 and a sample size of 50. The
variance of this distribution is
a. 20
b. 12
c. 3.46
d. 144
24. In a binomial experiment the probability of success is 0.06. What is the probability of two
successes in seven trials?
a. 0.0036
b. 0.0600
c. 0.0555
d. 0.2800
25. If P(A) = 0.62, P(B) = 0.47, and P(A  B) = 0.88, then P(A U B) =
a. 0.2914
b. 1.9700
c. 0.6700
d. 0.2100
1. What type of variable is each of the following?

1. hair colour
2. number of television sets in a private home
3. possible responses to questionnaire items are: yes, no, don't know
4. earthquake intensity
5. final position in a race - 1st, 30th, etc.
1. Ans hair colour: Qualitative, Nominal
2. number of television sets in a private home: Quantitative, Discrete
3. possible responses to questionnaire items are: yes, no, don't know: Qualitative,
Nominal
4. earthquake intensity: Quantitative, Continuous
5. final position in a race - 1st, 30th, etc.: Qualitative, Ordinal
101
D 1. Which of the following is not a method of assigning probabilities?
M A. classical probability
Term B. relative frequency
C. subjective probability
D. elementary inference
B 2. A process that produces outcomes is called _______.
E A. an event
Term B. an experiment
C. a result
D. population equivalent
A 3. Assigning probabilities by dividing the number of ways that an

event can occur by the total number of possible outcomes in an
experiment is called _______.
E A. classical probability
A 4. The method of assigning probabilities based on rules and laws is

called _______.
B 5. Using cumulated historical data to assign probabilities is called

_______.
C 6. Abel Alonzo, Director of Human Resources, is exploring

employee absenteeism at the Plano Power Plant. An analysis of
personnel records indicated that 20% of all plant employees are
absent excessively. This is an example of assigning probabilities
by the ________________ method.
173
M A. subjective probability
BApp B. relative frequency
C. classical probability
D. a priori probability
A 7. Belinda Bose is reviewing a newly proposed advertising

campaign. Based on her 15 years experience, she believes the
campaign has a 75% chance of significantly increasing brand
name recognition of the product. This is an example of
assigning probabilities by the ________________ method.
M A. subjective probability
BApp B. relative frequency
D. a priori probability
C 8. The probability of a “2” on a fair toss of a fair die is 1/6. This is

an example of assigning probabilities by the ________________
method.
E A. subjective probability
App B. relative frequency
D. empirical probability
D 9. Suzanne purchased a new microcomputer for each of her six

staff employees. Upon their arrival, the new computers were
randomly assigned to the staff members. One of the new
computers was defective. The probability that Bill’s new
computer is defective is 1/6. This is an example of assigning
probabilities by the ___________ method.
E A. subjective probability
App B. relative frequency
C. empirical probability
D. classical probability
C 10. The method of assigning probabilities based on the insight or

feelings of the person determining is called _______.
174
D 11. Which of the following is NOT a legitimate probability value?
E A. 0.67
Term B. 15/16
C. 0.23
D. 4/3
B 12. Which of the following is a legitimate probability value?
E A. 1.25
Term B. 15/16
C. -0.45
D. 8/7
175
A 13. An outcome of an experiment is called _______.
E A. an event
Term B. a priori elements
C. a probability
D. a complement
B 14. An event that cannot be broken down into other events is called
_______.
E A. an a priori event
Term B. an elementary event
C. a sample space
D. an intersection
A 15. The list of all elementary events for an experiment is called

_______.
E A. the sample space

Term B. the exhaustive list
C. the population space
D. the event union
D 16. In a set of 15 aluminum castings, two castings are defective (D),

and the remaining thirteen are good (G). A quality control
inspector randomly selects three of the fifteen castings without
replacement, and classifies each as defective (D) or good (G).
Which of the following is NOT an elementary event for this
experiment?
M A. (D, D, G)
App B. (G, D, G)
C. (G, G, G)
D. (D, D, D)
B 17. In a set of 15 aluminum castings, two castings are defective (D),

and the remaining thirteen are good (G). A quality control
inspector randomly selects three of the fifteen castings without
The sample space for this experiment contains ____________
elementary events.
M A. 3,375
App B. 2,730
176
C. 210
D. 15
D 18. In a set of 10 aluminum castings, two castings are defective (D),

and the remaining eight are good (G). A quality control
inspector randomly selects three of the ten castings with
Which of the following is an elementary event for this
experiment?
M A. (D, D, G, G, G, G, G, G, G, G)
App B. (D, D)
C. (G, G, G, G, G, G, G, G)
D. (D, D, D)
A 19. In a set of 10 aluminum castings, two castings are defective (D),

and the remaining eight are good (G). A quality control
inspector randomly selects three of the ten castings with
The sample space for this experiment contains __________
elementary events.
M A. 1,000
App B. 720
C. 100
D. 10
A 20. In a set of 100 purchasing transactions, two transactions

violated (V) company procurement policies, and the remaining
ninety-eight complied (C) with company policies. An auditor
randomly selects four of the 100 transactions without
replacement, and classifies each as violated (V) or complied (C).
The sample space for this experiment contains __________
elementary events.
M A. 94,109,400
App B. 100,000,000
C. 3,921,225
D. 400
D 21. In a set of 100 purchasing transactions, two transactions

violated (V) company procurement policies, and the remaining
ninety-eight complied (C) with company policies. An auditor
randomly selects four of the 100 transactions without
177
replacement, and classifies each as violated (V) or complied (C).
Which of the following is NOT an elementary event for this
experiment?
M A. (C, C, C, C)
App B. (V, C, V, C)
C. (C, V, C, C)
D. (V, C, V, V)
178
B 22. If an event is in set X but is not in set Y, which of the following is
true?
M A. it is not in the union of X and Y

App B. it is in the union of X and Y
C. it is in the intersection of X and Y
D. it is in both the union and intersection of X and Y
D 23. If an event is in the intersection of X and Y, then this event is

_______.
E A. not in the union of X and Y

App B. not in X
C. not in Y
D. in both X and Y
B 24. If X and Y are mutually exclusive events, then if X occurs _______.
E A. Y must also occur

App B. Y cannot occur
C. X and Y are independent
D. X and Y are complements
A 25. Consider the following sample space, S, and several events

defined on it. S = {Albert, Betty, Abel, Jack, Patty, Meagan},
and the events are: F = {Betty, Patty, Meagan}, H = {Abel,
Meagan}, and P = {Betty, Abel}. F  H is ___________.
E A. {Meagan}
App B. {Betty, Patty, Meagan}
C. empty, since F and H are complements
D. empty, since F and H are independent
B 26. Consider the following sample space, S, and several events

Meagan}, and P = {Betty, Abel}. F È H is ___________.
E A. {Meagan}
C. empty, since F and H are complements
D. empty, since F and H are independent
179
C 27. Consider the following sample space, S, and several events
Meagan}, and P = {Betty, Abel}. The complement of F is
___________.
E A. {Albert, Betty, Jack, Patty}

C. {Albert, Abel, Jack}
D. {Betty, Abel}
D 28. Consider the following sample space, S, and several events

and the events are: F = {Betty, Patty, Meagan}, M = {Albert,
Abel, Jack}, H = {Abel, Meagan}, and A = {Betty, Jack, Patty}.
Which of the following is NOT true?
M A. F and M are mutually exclusive

App B. H and A are mutually exclusive
C. F and M are complements
D. H and A are complements
C 29. If the occurrence of one event does not affect the occurrence of
another event, then the two events are _______.
E A. mutually exclusive
Term B. complements
C. independent
D. elementary events
D 30. Two events, X and Y, are complements. From this it can be

deduced that _______.
M A. X and Y are mutually exclusive

Term B. X and Y are collectively exhaustive
C. the intersection of X and Y is empty
D. all of the above
A 31. The joint probability of X and Y is also referred to as _______.
E A. the intersection of X and Y

Term B. the union of X and Y
C. the marginal probability of X and Y
D. the probability of X given Y
180
C 32. If X and Y are mutually exclusive, then _______.
E A. the probability of the union is zero

Term B. P(X) = 1 - P(Y)
C. the probability of the intersection is zero
D. the probability of the union is one
C 33. Let A be the event that a student is enrolled in an accounting

course, and let S be the event that a student is enrolled in a
statistics course. It is known that 30% of all students are
enrolled in an accounting course and 40% of all students are
enrolled in statistics. Included in these numbers are 15% who
are enrolled in both statistics and accounting. Find P(S).
M A. 0.15
Calc B. 0.30
C. 0.40
D. 0.55
A 34. Let A be the event that a student is enrolled in an accounting

are enrolled in both statistics and accounting. Find the
probability that a student is in accounting and is also in
statistics.
M A. 0.15
Calc B. 0.70
C. 0.55
D. 0.12
D 35. Let A be the event that a student is enrolled in an accounting

are enrolled in both statistics and accounting. A student is
randomly selected, and it is found that the student is enrolled in
accounting. What is the probability that this student is also
enrolled in statistics?
181
M A. 0.15
Calc B. 0.75
C. 0.375
D. 0.50
C 36. Let A be the event that a student is enrolled in an accounting

randomly selected, and it is found that the student is enrolled in
statistics. What is the probability that this student is also
enrolled in accounting?
M A. 0.15
Calc B. 0.75
C. 0.375
D. 0.50

randomly selected, what is the probability that the student is
enrolled in either accounting or statistics or both?
M A. 0.15
Calc B. 0.85
C. 0.70
D. 0.55

are enrolled in both statistics and accounting. From this
information, it can be concluded that _______.
M A. A and S are mutually exclusive

App B. A and S are independent
182
C. A and S are complements
D. A and S are not independent
183
B 39. Abel Alonzo, Director of Human Resources, is exploring
employee absenteeism at the Plano Power Plant. Ten percent of
all plant employees work in the finishing department; 20% of all
plant employees are absent excessively; and 7% of all plant
employees work in the finishing department and are absent
excessively. If a plant employee is selected randomly, and F is
the event "works in the finishing department," then P(F) =
_____________.
M A. 0.07
BCalc B. 0.10
C. 0.20
D. 0.13
A 40. Abel Alonzo, Director of Human Resources, is exploring

excessively. A plant employee is selected randomly; F is the
event "works in the finishing department;" and A is the event "is
absent excessively." P(A  F) = _____________.
M A. 0.07
BCalc B. 0.10
C. 0.20
D. 0.23
D 41. Abel Alonzo, Director of Human Resources, is exploring

absent excessively." P(A È F) = _____________.
M A. 0.07
BCalc B. 0.10
C. 0.20
D. 0.23
184
B 42. Abel Alonzo, Director of Human Resources, is exploring
absent excessively." P(A|F) = _____________.
H A. 0.37
BCalc B. 0.70
C. 0.13
D. 0.35
A 43. Abel Alonzo, Director of Human Resources, is exploring

absent excessively." P(F|A) = _____________.
H A. 0.35
BCalc B. 0.70
C. 0.13
D. 0.37
C 44. Abel Alonzo, Director of Human Resources, is exploring

absent excessively." Which of the following is true?
M A. A and F are collectively exhaustive

BApp B. A and F are mutually exclusive
C. A and F are dependent
D. A and F are independent
185
D 45. Abel Alonzo, Director of Human Resources, is exploring
absent excessively." Which of the following is true?
M A. A and F are collectively exhaustive

BApp B. A and F are mutually exclusive
C. A and F are dependent
D. A and F are independent
C 46. Max Sandlin is exploring the characteristics of stock market

investors. He found that sixty percent of all investors have a net
worth exceeding $1,000,000; 20% of all investors use an online
brokerage; and 10% of all investors a have net worth exceeding
$1,000,000 and use an online brokerage. If an investor is
selected randomly, and E is the event "networth exceeds
$1,000,000," then P(E) = _____________.
M A. 0.17
BCalc B. 0.10
C. 0.60
D. 0.20
D 47. Max Sandlin is exploring the characteristics of stock market

$1,000,000 and use an online brokerage. An investor is selected
randomly, and E is the event "networth exceeds $1,000,000,"
and O is the event "uses an online brokerage." P(E  O) =
_____________.
M A. 0.17
BCalc B. 0.10
C. 0.60
D. 0.20
186
D 48. Max Sandlin is exploring the characteristics of stock market
and O is the event "uses an online brokerage." P(O È E) =
_____________.
M A. 0.17
BCalc B. 0.50
C. 0.80
D. 0.70
A 49. Max Sandlin is exploring the characteristics of stock market

and O is the event "uses an online brokerage." P(O|E) =
_____________.
M A. 0.17
BCalc B. 0.50
C. 0.80
D. 0.70
B 50. Max Sandlin is exploring the characteristics of stock market

and O is the event "uses an online brokerage." P(E|O) =
_____________.
M A. 0.17
BCalc B. 0.50
C. 0.80
D. 0.70
187
B 51. Max Sandlin is exploring the characteristics of stock market
and O is the event "uses an online brokerage." Which of the
following is true?
M A. E and O are collectively exhaustive

BApp B. E and O are dependent
C. E and O are mutually exclusive
D. E and O are independent
C 52. Max Sandlin is exploring the characteristics of stock market

and O is the event "uses an online brokerage." Which of the
following is true?
M A. E and O are collectively exhaustive

BApp B. E and O are mutually exclusive
C. E and O are independent
D. E and O are dependent
C 53. Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(A È B).
E A. 0.90
Calc B. 1.05
C. 0.75
D. 0.65
C 54. Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(A|B).
E A. 0.20
Calc B. 0.80
C. 0.30
D. 0.375
188
D 55. Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(B|A).
E A. 0.20
Calc B. 0.80
C. 0.30
D. 0.375
D 56. Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Which of the
following is true?
M A. A and B are independent

App B. A and B are mutually exclusive
C. A and B are collectively exhaustive
D. A and B are not independent
B 57. Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(A È B).
E A. 0.45
Calc B. 0.55
C. 0.75
D. 0.65
D 58. Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(A|B).
E A. 0.50
Calc B. 0.65
C. 0.55
D. 0.25
C 59. Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(B|A).
E A. 0.20
Calc B. 0.50
C. 0.40
D. 0.65
A 60. Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Which of the
following is true?

App B. A and B are mutually exclusive
C. A and B are collectively exhaustive
D. A and B are not independent
189
B 61. There are three Democrats and four Republicans in a group of
seven people. If two people are selected from the total of seven,
how many ways can two people be selected?
E A. 12
Calc B. 21
C. 14
D. 15
A 62. There are three Democrats and four Republicans in a group of

seven people. If two people are selected from the total of seven,
how many ways can two Democrats be selected?
E A. 3
Calc B. 6
C. 2
D. 1
C 63. There are three Democrats and four Republicans in a group of

seven people. If three people are selected from the total of
seven, how many ways can two Democrats and one Republican
be selected?
M A. 7
Calc B. 14
C. 12
D. 21
D 64. A baseball player has a .300 batting average (i.e. there is a 30%
chance of a hit on any at bat). What is the probability that this
player gets hits on each of his next 3 at bats?
E A. 0.900
Calc B. 0.300
C. 0.333
D. 0.027
190
A 65. A baseball player has a .300 batting average (i.e. there is a 30%
chance of a hit on any at bat). What is the probability that this
player gets hits on each of his next 2 at bats and then makes an
out on the next at bat?
E A. 0.063
Calc B. 0.670
C. 0.090
D. 0.210
B 66. An automobile dealer wishes to investigate the relation between

the gender of the buyer and type of vehicle purchased. The
following joint probability table was developed from the dealer’s
records for the previous year.
Buyer Gender
Female Male Total
SUV
Not SUV .32 .48
Total .40 1.00
P(Male) = _____________.
E A. 0.48
BCalc B. 0.50
C. 0.20
D. 0.02
D 67. An automobile dealer wishes to investigate the relation between

Buyer Gender
Female Male Total
SUV
Not SUV .30 .40
Total .60 1.00
P(Female  SUV) = _____________.
E A. 0.30
BCalc B. 0.40
191
C. 0.12
D. 0.10

Buyer Gender
Female Male Total
SUV
Not SUV .30 .40
Total .60 1.00
P(Female) = _____________.
E A. 0.30
BCalc B. 0.40
C. 0.12
D. 0.10
A 69. An automobile dealer wishes to investigate the relation between

Buyer Gender
Female Male Total
SUV
Not SUV .30 .40
Total .60 1.00
P(SUV) = _____________.
E A. 0.30
BCalc B. 0.40
C. 0.12
D. 0.10
192
Buyer Gender
Female Male Total
SUV
Not SUV .32 .48
Total .40 1.00
Are “Female” and “SUV” independent and why or why not?
M A. no, because P(Female  SUV) = P(Female) · P(SUV)

BCalc B. no, because P(SUV) cannot be calculated from this
information
C. yes, because P(Female | SUV) = P(Female)
D. yes, because P(Female  SUV)  0
D 71. Meagan Dubean manages a portfolio of 200 common stocks.

Her staff classified the portfolio stocks by 'industry sector' and
'investment objective.'
Investment Industry Sector
Electronics Healthcare
Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
If a stock is selected randomly from Meagan's portfolio,
P(Growth) = _______.
E A. 0.50
BCalc B. 0.83
C. 0.67
D. 0.75
193
A 72. Meagan Dubean manages a portfolio of 200 common stocks.
Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
P(Healthcare) = _______.
E A. 0.25
BCalc B. 0.80
C. 0.20
D. 0.75
B 73. Meagan Dubean manages a portfolio of 200 common stocks.

Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
P(Healthcare È Electronics) = _______.
M A. 0.25
BCalc B. 0.85
C. 0.60
D. 0.75
194
Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
If a stock is selected randomly from Meagan's portfolio, P(Growth
È Income) = _______.
M A. 1.00
BCalc B. 0.65
C. 0.25
D. 0.85

Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
P(Airlines|Income) = _______.
H A. 0.10
BCalc B. 0.40
C. 0.25
D. 0.67
195
Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
P(Growth|Healthcare) = _____.
H A. 0.25
BCalc B. 0.40
C. 0.20
D. 0.80

Growth 100 10 40 150
Income 20 20 10 50
Total 120 30 50 200
Which of the following is NOT true?
M A. Growth and Income are complementary events.

BApp B. Electronics and Growth are dependent.
C. Electronics and Healthcare are mutually exclusive.
D. Airlines and Healthcare are collectively exhaustive.
196
Growth 84 21 35 140
Income 36 9 15 60
Total 120 30 50 200
Which of the following is true?
M A. Growth and Healthcare are complementary events.

BApp B. Electronics and Growth are independent.
C. Electronics and Growth are mutually exclusive.
D. Airlines and Healthcare are collectively exhaustive.

Growth 84 21 35 140
Income 36 9 15 60
Total 120 30 50 200
Are “Healthcare” and “Income” independent and why or why
not?
M A. yes, because P(Healthcare | Income) = P(Healthcare)

BCalc B. no, because P(Healthcare)  P(Income)
C. no, because P(Income  Healthcare) = P(Healthcare) ·
P(Income)
D. yes, because P(Income  Healthcare)  0
B 80.The table below provides summary information about students

in a class. The sex of each individual and the major is given.
Male Female Total
Accounting 12 18 30
10 8 18
26 26 52
Total 48 52 100
If a student is randomly selected from this group, what is the
probability that the student is male?
E A. 0.12
197
Calc B. 0.48
C. 0.50
D. 0.52
A 81. The table below provides summary information about students
Male Female Total
Accounting 12 18 30
10 8 18
26 26 52
Total 48 52 100
If a student is randomly selected from this group, what is the
probability that the student is a female who majors in
accounting?
E A. 0.18
Calc B. 0.60
C. 0.35
D. 0.40
C 82. The table below provides summary information about students

Male Female Total
Accounting 12 18 30
10 8 18
26 26 52
Total 48 52 100
A student is randomly selected from this group, and it is found
that the student is majoring in finance. What is the probability
that the student is a male?
H A. 0.21
Calc B. 0.10
C. 0.56
D. 0.48
198
D 83. The table below provides summary information about students
Male Female Total
Accounting 12 18 30
10 8 18
26 26 52
Total 48 52 100
A student is randomly selected from this group, and it is found
that the student is a male. What is the probability that the
student is majoring in accounting?
H A. 0.30
Calc B. 0.40
C. 0.12
D. 0.25
A 84. The table below provides summary information about students

Male Female Total
Accounting 12 18 30
10 8 18
26 26 52
Total 48 52 100
A student is randomly selected from this group. Let A be the
event that the student is an accounting major and let F be the
event that the student is female. Find P(F and A).
M A. 0.18
Calc B. 0.156
C. 0.52
D. 0.30
199
C 85. The table below provides summary information about students
Male Female Total
Accounting 12 18 30
10 8 18
26 26 52
Total 48 52 100
A student is randomly selected from this group. Let A be the
event that the student is an accounting major and let F be the
event that the student is female. Are A and F independent and
why or why not?
M A. yes, because there are some male accounting majors

App B. no, because there are some male accounting majors
C. no, because P(A|F) does not equal P(A)
D. no, because P(A|F) does not equal P(F)
B 86. A market research firm is investigating the appeal of three

package designs. The table below gives information obtained
through a sample of 200 consumers. The three package designs
are labeled A, B, and C. The consumers are classified according
to age and package design preference.
A B C Total
Under 25 22 34 40 96
y
e
a
r
s
25 or older 54 28 22 104
Total 76 62 62 200
If one of these consumers is randomly selected, what is the
probability that the person prefers design A?
E A. 0.76
BCalc B. 0.38
C. 0.33
D. 0.22
200
A B C Total
Under 25 22 34 40 96
y
e
a
r
s
25 or older 54 28 22 104
Total 76 62 62 200
If one of these consumers is randomly selected, what is the
probability that the person prefers design A and is under 25?
M A. 0.22
BCalc B. 0.11
C. 0.18
D. 0.54

A B C Total
Under 25 22 34 40 96
y
e
a
r
s
25 or older 54 28 22 104
Total 76 62 62 200
If one of these consumers is randomly selected and is under 25,
what is the probability that the person prefers design A?
H A. 0.22
BCalc B. 0.23
C. 0.29
D. 0.18
201
202
C 89. A market research firm is investigating the appeal of three
A B C Total
Under 25 22 34 40 96
y
e
a
r
s
25 or older 54 28 22 104
Total 76 62 62 200
If one of these consumers is randomly selected and prefers
design B, what is the probability that the person is 25 or older?
H A. 0.28
BCalc B. 0.14
C. 0.45
D. 0.27
C 90. A market research firm is investigating the appeal of three

A B C Total
Under 25 22 34 40 96
y
e
a
r
s
25 or older 54 28 22 104
Total 76 62 62 200
Are “B” and “25 or older” independent and why or why not?
M A. no, because P(25 or over | B)  P(B)

BCalc B. yes, because P(B) = P(C)
C. no, because P(25 or older | B)  P(25 or older)
D. yes, because P(25 or older  B)  0
203
A 91. Of 10 people on a student newspaper staff, 6 are familiar with a
particular word processing package. If three people are
randomly selected and assigned to work as a team, how many
ways could the team be selected?
E A. 120
Calc B. 10
C. 3
D. 720
204
B 92. Of 10 people on a student newspaper staff, 6 are familiar with a
ways could a team be selected in which no one was familiar with
the word processing package?
E A. 120
Calc B. 4
C. 6
D. 24
D 93. Of 10 people on a student newspaper staff, 6 are familiar with a

ways could a team be selected in which one was familiar with
the word processing package and the other two were not?
M A. 24
Calc B. 120
C. 20
D. 36
A 94. A market research firms conducts studies regarding the success

of new products. The company is not always perfect in
predicting the success. Suppose that there is a 50% chance that
any new product would be successful (and a 50% chance that it
would fail). In the past, for all new products that ultimately were
successful, 80% were predicted to be successful (and the other
20% were inaccurately predicted to be failures). Also, for all new
products that were ultimately failures, 70% were predicted to be
failures (and the other 30% were inaccurately predicted to be
successes). What is the a priori probability that a new product
would be a success?
E A. 0.50
BApp B. 0.80
C. 0.70
D. 0.60
205
D 95. A market research firms conducts studies regarding the success
successes). For any randomly selected new product, what is the
probability that the market research firm would predict it to be a
success?
H A. 0.80
BCalc B. 0.50
C. 0.45
D. 0.55
B 96. A market research firms conducts studies regarding the success

successes). If the market research predicted that the product
would be a success, what is the probability that it actually would
be a success?
H A. 0.27
BCalc B. 0.73
C. 0.80
D. 0.24
B 97. An analysis of personal loans at Georgetown Global Bank

revealed the following facts: 10% of all personal loans are in
default (D), 90% of all personal loans are not in default ( D ), 20%
of those in default are homeowners (H|D), and 70% of those not
in default are homeowners (H| D ). If one of the personal loans is
selected at random P(H  D) = ___________.
M A. 0.20
206
BCalc B. 0.63
C. 0.90
D. 0.18
207
A 98. An analysis of personal loans at Georgetown Global Bank
revealed the following facts: 10% of all personal loans are in
default (D), 90% of all personal loans are not in default ( D ), 20%
of those in default are homeowners (H|D), and 70% of those not
in default are homeowners (H| D ). If one of the personal loans is
selected at random P(D|H) = ___________.
H A. 0.03
BCalc B. 0.63
C. 0.02
D. 0.18
A 99. Given P(A) = 0.6, P(B) = 0.4, P(A  B)=0.24. Which of the
following statements is true?
M A. P(A|B) = 0.60
Calc B. P(A|B) = 0.40
C. P(B|A) = 0.60
D. A and B are mutually exclusive
C 100. Given P(A) = 0.6, P(B) = 0.4, P(A|B)=0.50. Which of the

following statements is true?

Calc B. P(A  B) = .30
C. P(A  B) = .20
D. none of the above is true
B 101. Given P(A) = 0.6, P(B) = 0.4, P(A|B)=0.50. Find P(A È B).
M A. 1.00
Calc B. 0.80
C. 1.10
D. 0.10
208
B 102. The staffs of the accounting and the quality control departments
rated their respective supervisor's leadership style as either (1)
authoritarian or (2) participatory. Their responses are tabulated
in the following table.
Leadership Style
Department Authoritaria Participator Total
n y
Accounting 12 18 30
Quality 28 42 70
Co
nt
rol
Total 40 60 100
If one of these employees is selected randomly, P(Accounting È
Participatory) = ___.
M A. 0.18
BCalc B. 0.72
C. 0.90
D. 0.30
A 103. The staffs of the accounting and the quality control departments
Leadership Style
n y
Accounting 12 18 30
Quality 28 42 70
Co
nt
rol
Total 40 60 100
If one of these employees is selected randomly, P(Accounting 
M A. 0.18
BCalc B. 0.72
C. 0.90
D. 0.12
209
C 104. The staffs of the accounting and the quality control departments
Leadership Style
n y
Accounting 12 18 30
Quality 28 42 70
Co
nt
rol
Total 40 60 100
Which of the following statements is NOT true?
M A. Authoritarian and Participatory are mutually exclusive

BApp B. Accounting and Quality Control are complements
C. Accounting and Participatory are dependent
D. Accounting and Quality Control are collectively exhaustive
D 105. The staffs of the accounting and the quality control departments
Leadership Style
n y
Accounting 12 18 30
Quality 28 42 70
Co
nt
rol
Total 40 60 100
Are Accounting and Authoritarian independent and why or why
not?
M A. no, because P(Accounting)  P(Authoritarian)

BApp B. yes, because P(Accounting) = P(Authoritarian | Accounting)
C. no, because P(Authoritarian)  P(Participatory)
D. yes, because P(Accounting) = P(Accounting | Authoritarian)
210
C 106. The staffs of the accounting and the quality control departments
Leadership Style
n y
Accounting 40 5 45
Quality 20 35 55
Co
nt
rol
Total 60 40 100
If one of these employees is selected randomly, P(Accounting È
M A. 0.18
BCalc B. 0.72
C. 0.80
D. 0.05
D 107. The staffs of the accounting and the quality control departments
Leadership Style
n y
Accounting 40 5 45
Quality 20 35 55
Co
nt
rol
Total 60 40 100
If one of these employees is selected randomly, P(Accounting 
M A. 0.18
BCalc B. 0.72
C. 0.80
D. 0.05
211
Leadership Style
n y
Accounting 40 5 45
Quality 20 35 55
Co
nt
rol
Total 60 40 100
Which of the following statements is NOT true?
M A. Accounting and Participatory are statistically independent

BApp B. Accounting and Quality Control are complements
C. Accounting and Quality Control are mutually exclusive
D. Authoritarian and participatory are collectively exhaustive
Leadership Style
n y
Accounting 40 5 45
Quality 20 35 55
Co
nt
rol
Total 60 40 100
Are Accounting and Authoritarian independent and why or why
not?
M A. no, because P(Accounting)  P(Accounting | Authoritarian)

BApp B. yes, because P(Accounting) = P(Authoritarian | Accounting)
C. no, because P(Authoritarian)  P(Participatory)
D. no, because P(Accounting)  P(Authoritarian)
212
213
110. An Employee Involvement Team is studying a problem of quality
with an aluminum casting. Team members gather data on 400
castings and compiled the following table.
Castings Production Shift

Status
No Defects 195 75 50
Reworked 5 15 30
Scrapped 0 10 20
Discuss the team's findings. What can the team conclude from
these data? What employment practices or other factors may
explain the 'night shift problem?' What graphic depiction should
the team choose for the presentation to their supervisors?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
214
111. James Desreumaux, VP of Human Resources of American First
Banks (AFB), is reviewing the employee evaluation programs of
AFB banks. His staff classified the employees of two AFB banks
by their supervisor-assigned performance rating.
Performance Rating
Below Average Above
A A
v v
e e
r r
a a
g g
e e
Metro 4 22 34
East Brook 6 18 16
Discuss the managerial implications of this situation. What can

James conclude from these data? What other relevant factors
should he consider? What graphic depiction should he choose
for his presentation to the bank's board of directors?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
215
112. Crosstabulation of responses from readers of newspaper comic
strips produced the following frequency distirbution of age
categories and favorite comic.
Favorite Comic by Age

Comic
Age Tiger Sherman Dilbert Pickles Grand Total
Under 12 28 22 16 14 80
12 Under 18 14 11 8 7 40
18 Under 25 56 44 32 28 160
25 Under 50 28 22 16 14 80
50+ 14 11 8 7 40
Grand Total 140 110 80 70 400
Discuss what the frequency distribution reveals about the relation between age and
favorite comic.
M
BApp
216
113. Crosstabulation of responses from television viewers produced
the following frequency distirbution of age categories and
favorite TV program.
Favorite TV Program by Age

TV Program
Age MTV Simpsons 60 Minutes COPS Grand Total
Under 12 18 8 2 2 30
12 under 18 29 23 3 3 58
18 under 25 33 33 21 11 98
25 under 50 6 15 35 28 84
50+ 1 4 6 19 30
Grand Total 87 83 67 63 300
Discuss what the frequency distribution reveals about the relation between age and
favorite TV program.
M
BApp
217
CHAPTER SIX
Continuous Distributions
218
Continuous Distributions
D 1. Which of the following is NOT a continuous distribution?
E A. normal distribution
Term B. exponential distribution
C. uniform distribution
D. binomial distribution
D 2. The uniform distribution is _______________.
E A. bimodal
Term B. skewed to the right
C. skewed to the left
D. symmetric
A 3. The uniform distribution is also known as the __________.
E A. rectangular distribution
Term B. gamma distribution
C. beta distribution
D. Erlang distribution
D 4. The distribution in the following graph is a ________ distribution.
0.06
0.05
0.04
f(X)
0.03
0.02
0.01
0.00
35 40 45 50 55 60 x 65
E A. normal
Term B. gamma
C. exponential
D. uniform
A 5. The distribution in the following graph is a ________ distribution.

0.5
0.4
0.3
0.2
0.1
0
x
219
Chapter Six
E A. normal
Term B. gamma
C. exponential
D. uniform
220
Chapter 4: Probability 221
C 6. The distribution in the following graph is a ________ distribution.

1.2
1.0
0.8
0.6
0.4
0.2
0.0
0 1 2 3 4 5 x 6
E A. normal
Term B. gamma
C. exponential
D. uniform
B 7. If X is uniformly distributed over the interval 8 to 12, inclusively

(8 £ X £ 12), then the height of this distribution, f(x), is
__________________.
E A. 1/8
Term B. 1/4
C. 1/12
D. 1/20
A 8. If X is uniformly distributed over the interval 8 to 12, inclusively

(8 £ X £ 12), then the mean() of this distribution is
__________________.
M A. 10
Calc B. 20
C. 5
D. incalculable
C 9. If X is uniformly distributed over the interval 8 to 12, inclusively

(8 £ X £ 12), then the standard deviation () of this distribution is
__________________.
M A. 4
Calc B. 1.33
C. 1.15
D. 2
222 Test Bank

(8 £ X £ 12), then the P(9 £ X £ 11) is __________________.
M A. 0.250
Calc B. 0.500
C. 0.333
D. 1.000

(8 £ X £ 12), then the P(10.0 £ X £ 11.5) is __________________.
M A. 0.250
Calc B. 0.333
C. 0.375
D. 0.000
D 12. If X is uniformly distributed over the interval 8 to 12, inclusively

(8 £ X £ 12), then the P(13 £ X £ 15) is __________________.
M A. 0.250
Calc B. 0.500
C. 0.375
D. 0.000

(8 £ X £ 12), then P(X < 7) is __________________.
M A. 0.500
Calc B. 0.000
C. 0.375
D. 0.250

(8 £ X £ 12), then P(X £ 11) is __________________.
M A. 0.750
Calc B. 0.000
C. 0.333
D. 0.500

(8 £ X £ 12), then P(X ³ 10) is __________________.
E A. 0.750
Calc B. 0.000
C. 0.333
D. 0.500

(20 £ X £ 30), then the height of this distribution, f(x), is
__________________.
E A. 1/10
Calc B. 1/20
C. 1/30
D. 1/50

(20 £ X £ 30), then the mean () of this distribution is
__________________.
M A. 50
Calc B. 25
C. 10
D. 5

(20 £ X £ 30), then the standard deviation () of this distribution
is __________________.
M A. incalculable
Calc B. 8.33
C. 0.833
D. 2.89

(20 £ X £ 30), then P(25 £ X £ 28) is __________________.
M A. 0.250
Calc B. 0.500
C. 0.300
D. 1.000
224 Test Bank

(20 £ X £ 30), then P(21.75 £ X £ 24.25) is __________________.
M A. 0.250
Calc B. 0.333
C. 0.375
D. 0.000

(20 £ X £ 30), then P(33 £ X £ 35) is __________________.
M A. 0.500
Calc B. 0.000
C. 0.375
D. 0.200

(20 £ X £ 30), then P(X < 17) is __________________.
M A. 0.500
Calc B. 0.300
C. 0.000
D. 0.250

(20 £ X £ 30), then P(X £ 22) is __________________.
M A. 0.200
Calc B. 0.300
C. 0.000
D. 0.250

(20 £ X £ 30), then P(X ³ 24) is __________________.
M A. 0.100
Calc B. 0.000
C. 0.333
D. 0.600
C 25. Helen Casner, a labor relations arbitrator, feels that the amount
of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 £ X £
24). Accordingly, the mean (average) time needed to arbitrate a
labor dispute is ____________.
M A. 20 hours
BCalc B. 16 hours
C. 14 hours
D. 12 hours
D 26. Helen Casner, a labor relations arbitrator, feels that the amount
24). Accordingly, the probability that a labor dispute will be
arbitrated in 8 hours or less is ____________.
M A. 0.3333
BCalc B. 0.6667
C. 0.0000
D. 0.2000
C 27. Helen Casner, a labor relations arbitrator, feels that the amount
24). Accordingly, the probability that a labor dispute will require
between 8 and 16 hours, inclusively, for arbitration is
____________.
M A. 0.3333
BCalc B. 0.6667
C. 0.4000
D. 0.2000
B 28. The normal distribution is an example of _______.
E A. a discrete distribution
Term B. a continuous distribution
C. a bimodal distribution
D. an exponential distribution
226 Test Bank
B 29. The total area underneath any normal curve is _______.
E A. equal to the mean

Term B. equal to 1
C. equal to the variance
D. equal to the coefficient of variation
D 30. The area to the left of the mean in any normal distribution is
_______.
E A. equal to the mean

Term B. equal to 1
C. equal to the variance
D. equal to 0.5
B 31. For any normal distribution, any value less than the mean would
have a _______.
E A. positive Z-score
Term B. negative Z-score
C. negative variance
D. negative probability of occurring
D 32. A standardized normal distribution has the following

characteristics:
E A. the mean and variance are both equal to 1

Term B. the mean and variance are both equal to 0
C. the mean is equal to the variance
D. the mean is equal to 0 and the variance is equal to 1
C 33. If X is a normal random variable with mean 80 and standard

deviation 5, calculate the Z score if X=88.
E A. 1.8
Calc B. -1.8
C. 1.6
D. -1.6
D 34. If X is a normal random variable with mean 80 and standard

E A. 1.8
Calc B. -1.8
C. 1.6
D. -1.6
D 35. If X is a normal random variable with mean 80 and standard
E A. 2.1
Calc B. 12
C. 1.2
D. 2.4
C 36. If X is a normal random variable with mean 60 and standard

E A. 1.5
Calc B. 2.5
C. -1.5
D. -2.5
C 37. Suppose X is a normal random variable with mean 60 and

standard deviation 2. A Z score was calculated for a number,
and the Z score is 3.4. What is X?
M A. 63.4
Calc B. 56.6
C. 66.8
D. 53.2
D 38. Suppose X is a normal random variable with mean 60 and

standard deviation 2. A Z score was calculated for a number,
and the Z score is -1.3. What is X?
M A. 58.7
Calc B. 61.3
C. 62.6
D. 57.4
B 39. Let Z be a normal random variable with mean 0 and standard

deviation 1. Use the normal tables to find P(Z < 1.3).
E A. 0.4032
Calc B. 0.9032
C. 0.0968
D. 0.3485
228 Test Bank
D 40. Let Z be a normal random variable with mean 0 and standard

deviation 1. Use the normal tables to find P(1.3 < Z < 2.3).
E A. 0.4032
Calc B. 0.9032
C. 0.4893
D. 0.0861
C 41. Let Z be a normal random variable with mean 0 and standard

deviation 1. Use the normal tables to find P(Z > 2.4).
M A. 0.4918
Calc B. 0.9918
C. 0.0082
D. 0.4793

deviation 1. Use the normal tables to find P(Z < -2.1).
M A. 0.4821
Calc B. -0.4821
C. 0.9821
D. 0.0179

deviation 1. Use the normal tables to find P(Z > -1.1).
M A. 0.3643
Calc B. 0.8643
C. 0.1357
D. -0.1357

deviation 1. Use the normal tables to find P(-2.25 < Z < -1.1).
M A. 0.3643
Calc B. 0.8643
C. 0.1235
D. 0.4878

deviation 1. Use the normal tables to find P(-2.25 < Z < 1.1).
M A. 0.3643
Calc B. 0.8521
C. 0.1235
D. 0.4878

deviation 1. The 50th percentile of Z is ____________.
E A. 0.670
Calc B. -1.254
C. 0.000
D. 1.280
A 47. Let Z be a normal random variable with mean 0 and standard

M A. 0.670
Calc B. -1.254
C. 0.000
D. 1.280

M A. 1.645
Calc B. -1.254
C. 1.960
D. 1.280
A 49. Let Z be a normal random variable with mean 0 and standard

M A. 1.645
Calc B. -1.254
C. 1.960
D. 1.280
230 Test Bank
B 50. Let X be a normal random variable with mean 20 and standard

deviation 4. Find P(X < 25).
M A. 0.3944
Calc B. 0.8944
C. 0.1056
D. 0.6056
C 51. Let X be a normal random variable with mean 20 and standard

M A. 0.2734
Calc B. 0.7734
C. 0.2266
D. -0.2734

M A. 0.0987
Calc B. 0.4013
C. -0.0987
D. 0.5987
D 53. Let X be a normal random variable with mean 20 and standard

deviation 4. Find P(16 < X < 22).
M A. 0.4672
Calc B. 0.0328
C. 0.1498
D. 0.5328

deviation 4. The 50th percentile of X is ____________.
E A. 4.000
Calc B. 20.000
C. 22.698
D. 26.579
C 55. Let X be a normal random variable with mean 20 and standard

M A. 25.126
Calc B. 20.000
C. 22.698
D. 26.579
A 56. Let X be a normal random variable with mean 20 and standard

M A. 25.126
Calc B. 20.000
C. 22.698
D. 26.579

M A. 25.126
Calc B. 20.000
C. 22.698
D. 26.579

deviation 8. Find P(32 < X < 44).
M A. 0.4672
Calc B. 0.0328
C. 0.1498
D. 0.5328
A 59. Let X be a normal random variable with mean 40 and standard

M A. 1.0000
Calc B. 0.0000
C. 0.0793
D. 0.0575
232 Test Bank

M A. 1.0000
Calc B. 0.0000
C. 0.2580
D. 0.0472
B 61. A Z score is the number of __________ that a value is from the

mean.
E A. variances
Term B. standard deviations
C. units
D. miles
C 62. Within a range of Z scores from -1 to +1, you can expect to find
_______ per cent of the values in a normal distribution.
E A. 95
Term B. 99
C. 68
D. 34
A 63. Within a range of Z scores from -2 to +2, you can expect to find
_______ per cent of the values in a normal distribution.
E A. 95
Term B. 99
C. 68
D. 34
C 64. The expected (mean) life of a particular type of light bulb is

1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last longer than 1150 hours?
M A. 0.4987
Calc B. 0.9987
C. 0.0013
D. 0.5013
B 65. The expected (mean) life of a particular type of light bulb is

randomly selected bulb would last fewer than 1100 hours?
M A. 0.4772
Calc B. 0.9772
C. 0.0228
D. 0.5228
C 66. The expected (mean) life of a particular type of light bulb is

randomly selected bulb would last fewer than 940 hours?
M A. 0.3849
Calc B. 0.8849
C. 0.1151
D. 0.6151
D 67. Suppose you are working with a data set that is normally
distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that 60% of the values are
greater than X.
H A. 404.5
Calc B. 395.5
C. 405.0
D. 395.0
A 68. Suppose you are working with a data set that is normally
Determine the value of X such that only 1% of the values are
greater than X.
H A. 446.6
Calc B. 353.4
C. 400.039
D. 405
234 Test Bank
C 69. Suppose you are working with a data set that is normally
Determine the value of X such that 5% of the values are less
than X.
H A. 432.9
Calc B. 396
C. 367.1
D. 404
C 70. The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If one of these
cars is randomly selected, what is the probability that the fuel
cost for this car exceeds $900?
M A. 0.3944
Calc B. 0.8944
C. 0.1056
D. 0.6056
B 71. The E.P.A. has reported that the average fuel cost for a particular
Fuel cost is assumed to be normally distributed. If one of these
cars is randomly selected, what is the probability that the fuel
cost for this car exceeds $760?
M A. 0.1915
Calc B. 0.6915
C. 0.3085
D. 0.8085
B 72. The E.P.A. has reported that the average fuel cost for a particular
Fuel cost is assumed to be normally distributed. We would
expect that only 10% of these cars would have an annual fuel
cost greater than _______.
H A. 820.0
Calc B. 902.4
C. 808.0
D. 812.8
A 73. The E.P.A. has reported that the average fuel cost for a particular
Fuel cost is assumed to be normally distributed. If a car is
randomly selected, what is the probability that fuel cost would
be between $700 and $900?
M A. 0.7888
Calc B. 0.8944
C. 0.3944
D. 0.1056
C 74. The net profit of an investment is normally distributed with a

mean of $10,000 and a standard deviation of $5,000. The
probability that the investor will not have a net loss is
_____________.
M A. 0.4772
BCalc B. 0.0228
C. 0.9772
D. 0.9544
B 75. The net profit of an investment is normally distributed with a

probability that the investor will have a net loss is _____________.
M A. 0.4772
BCalc B. 0.0228
C. 0.9772
D. 0.9544
A 76. The net profit of an investment is normally distributed with a

probability that the investor’s net profit will be between $12,000
and $15,000 is _____________.
M A. 0.1859
BCalc B. 0.3413
C. 0.8413
D. 0.4967
236 Test Bank
C 77. The net profit of an investment is normally distributed with a

probability that the investor’s net gain will be at least $5,000 is
_____________.
M A. 0.1859
BCalc B. 0.3413
C. 0.8413
D. 0.4967
A 78. Completion time (from start to finish) of a building remodeling

project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within 185 work-days is ______.
M A. 0.0668
BCalc B. 0.4332
C. 0.5000
D. 0.9332
D 79. Completion time (from start to finish) of a building remodeling

project will be completed within 215 work-days is _____.
M A. 0.0668
BCalc B. 0.4332
C. 0.5000
D. 0.9332
A 80. Completion time (from start to finish) of a building remodeling

project will not be completed within 215 work-days is _____.
M A. 0.0668
BCalc B. 0.4332
C. 0.5000
D. 0.9332
C 81. Completion time (from start to finish) of a building remodeling

project will be completed within ____ work-days is 0.99.
M A. 211
BCalc B. 187
C. 223
D. 200
B 82. The length of steel rods produced by a shearing process are

normally distributed with  = 120 inches and  = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. The probability that a rod produced
by this process will conform to industry standards is
______________.
M A. 0.9542
BCalc B. 0.9759
C. 0.9974
D. 0.6826
C 83. The length of steel rods produced by a shearing process are

120.15 inches, inclusively. Any rod longer than 120.15 inches is
re-sheared. The probability that a rod produced by this process
will require re-shearing is ___________.
M A. 0.0458
BCalc B. 0.0228
C. 0.0013
D. 0.0241
B 84. The length of steel rods produced by a shearing process are

120.15 inches, inclusively. Any rod shorter than 119.90 inches is
scrapped (used in the next melt). The probability that a rod
produced by this process will be scrapped is ___________.
M A. 0.0458
BCalc B. 0.0228
C. 0.0013
238 Test Bank
D. 0.0241
A 85. The weights of aluminum castings produced by a process are

normally distributed with  = 2 pounds and  = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. The probability that a
casting produced by this process will conform to design
specifications is _________.
M A. 0.8990
BCalc B. 0.4495
C. 0.9974
D. 0.9500
C 86. The weights of aluminum castings produced by a process are

1.836 and 2.164 pounds, inclusively. Any casting weighing less
than 1.836 pounds is scrapped. The probability that a casting
produced by this process will be scrapped, due to under-weight,
is _________.
M A. 0.1010
BCalc B. 0.4495
C. 0.0505
D. 0.0010
C 87. The weights of aluminum castings produced by a process are

1.836 and 2.164 pounds, inclusively. Any casting weighing more
than 2.164 pounds is re-worked. The probability that a casting
produced by this process will be re-worked, due to over-weight,
is _________.
M A. 0.0010
BCalc B. 0.1010
C. 0.0101
D. 0.0505
B 88. Let X be a binomial random variable with n=20 and p=.8. If we

use the normal distribution to approximate probabilities for this,
we would use a mean of _______.
E A. 20
Calc B. 16
C. 3.2
D. 8
C 89. Let X be a binomial random variable with n=20 and p=.8. If we

we would use a standard deviation of _______.
M A. 16
Calc B. 3.2
C. 1.79
D. 0.16

a correction for continuity should be made. To find the
probability of more than 12 successes, we should find _______.
M A. P(X>12)
Term B. P(X>12.5)
C. P(X>11.5)
D. P(X<11.5)

probability of 12 successes or more, we should find _______.
M A. P(X>12)
Term B. P(X>11.5)
C. P(X>12.5)
D. P(X<12.5)
C 92. Let X be a binomial random variable with n=20 and p=.8. If we

probability of more than 6 but less than 12 successes, we should
find _______.
H A. P(6<X<12)
Calc B. P(6.5<X<12.5)
C. P(6.5<X<11.5)
D. P(5.5<X<12.5)
240 Test Bank
C 93. Ten percent of all personal loans granted by First Easy Money
Bank are defaulted in the fourth re-payment month. One-
hundred four-month old personal loans are randomly selected
from a population of 3,000. The number of defaulted loans in
this sample has a binomial distribution. If we use the normal
distribution to approximate probabilities for this, we would use a
mean of _______.
M A. 30
BCalc B. 50
C. 10
D. 300
B 94. According to the U. S. Department of Commerce, 8.6% of the

total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. If X is the number of
employees in the sample with jobs related to manufactured
exports, then the mean (expected) value of X is _______________.
M A. 8.60
BCalc B. 17.20
C. 15.72
D. 3.96
D 95. According to the U. S. Department of Commerce, 8.6% of the

Washington state is randomly selected. If X is the number of
employees in the sample with jobs related to manufactured
exports, then the standard deviation of X is _______________.
H A. 8.60
Calc B. 17.20
C. 15.72
D. 3.96
D 96. According to the U. S. Department of Commerce, 8.6% of the

Washington state is randomly selected. The probability that
between 9 and 15 (inclusively) of the employees have jobs
related to manufactured exports is _______________.
242 Test Bank
H A. 0.9564
BCalc B. 0.9435
C. 0.9386
D. 0.9874
B 97. The exponential distribution is an example of _______.
E A. a discrete distribution
Term B. a continuous distribution
C. a bimodal distribution
D. an normal distribution
B 98. If arrivals at a bank follow a Poisson distribution, then the time

between arrivals would be _______.
M A. normally distributed
Term B. exponentially distributed
C. a binomial distribution
D. equal to lambda
B 99. For an exponential distribution with lambda () equal to 4 per
minute, the mean () is __________.
E A. 4
Term B. 0.25
C. 0.5
D. 1
C 100. For an exponential distribution with lambda () equal to 4 per

minute, the standard deviation () is _______.
M A. 4
Term B. 0.5
C. 0.25
D. 1
A 101. The average time between phone calls is 30 seconds. Assuming

that the time between calls is exponentially distributed, find the
probability that more than a minute elapses between calls.
M A. 0.135
Calc B. 0.368
C. 0.865
D. 0.607
244 Test Bank
D 102. The average time between phone calls is 30 seconds. Assuming

that the time between calls is exponentially distributed, find the
probability that less than two minutes elapse between calls.
M A. 0.018
Calc B. 0.064
C. 0.936
D. 0.982
B 103. Suppose that the mean time between arrivals is ten minutes and
that random arrivals are Poisson distributed. Find the probability
that less than 8 minutes pass between two arrivals.
M A. 0.449
Calc B. 0.551
C. 0.286
D. 0.714
A 104. Suppose that the mean time between arrivals is ten minutes and
that random arrivals are Poisson distributed. Find the probability
that more than 5 minutes pass between two arrivals.
M A. 0.607
Calc B. 0.393
C. 0.135
D. 0.865
D 105. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
Wash at the rate of 6 cars per fifteen minute interval. The
average interarrival time between cars is _____________.
E A. 2.167 minutes
BCalc B. 10.000 minutes
C. 0.167 minutes
D. 2.500 minutes
B 106. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
probability that at least 2 minutes will elapse between car
arrivals is _____________.
M A. 0.0000
BCalc B. 0.4493
C. 0.1353
D. 2.2255
C 107. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
probability that at least 5 minutes will elapse between car
arrivals is _____________.
M A. 0.0000
BCalc B. 0.4493
C. 0.1353
D. 0.0067
B 108. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
probability that less than 10 minutes will elapse between car
arrivals is _____________.
M A. 0.8465
BCalc B. 0.9817
C. 0.0183
D. 0.1535
D 109. The exponential distribution is _______.
E A. symmetric
Term B. bimodal
C. skewed to the left
D. skewed to the right
B 110. The standard normal distribution is also called _______.
E A. an exponential distribution
Term B. the Z distribution
C. a discrete distribution
D. a finite distribution
246 Test Bank
A 111. The normal distribution is also referred to as _______.
E A. the Gaussian distribution

Term B. the de Moivre distribution
C. the exponential distribution
D. the Poisson distribution
112. Richard Bowman, Purchasing Manager at Mid-West Medical

Center, is reviewing the annual vendor performance report.
Richard is searching for opportunities to reduce Mid-West's
inventory costs, and pauses to study a table summarizing the
delivery times (elapsed time from placing an order until the
material is received) for two suppliers of surgical dressings and
related materials.
MedcoGauze-R-US
S
u
p
pl
ie
s
17 9
5 2
Discuss the relevance of this information to Richard's objective

of reducing inventory costs. Which vendor should Mid-West
favor? Why? What other factors should Richard consider?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
113. Candace Maldonado, VP of Customer Services at Alamo Auto

Insurance, Inc., is reviewing the performance of the claims
processing division of her company. Her staff reports that the
time required to process claims is normally distributed with  =
14 days and  = 3 days. Even though Candace has received
several complaint letters from customers alleging lengthy delays
in claims processing, she knows that Alamo out-performs the
industry. (For the industry, processing time is normal with  =
25 days and  = 5 days.) Moreover, she knows that improving
(decreasing) claims processing time will reduce investment
interest earned by the company -- putting a downward pressure
on corporate profits and an upward pressure on premiums.
Discuss Candace's dilemma. How should she respond to the

complaining customers? Should she share her statistics with
other corporate managers?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
248 Test Bank
114. Mone Carlo Simulation analysis of a proposed capital

expenditure indicates that the net present value of the project is
normallly distributed with  of $6,000 and a  of $4,000.
0.45
0.40
0.35
0.30
0.25
f(x)
0.20
0.15
0.10
0.05
0.00
($10,000) ($5,000) $0 $5,000 $10,000 $15,000 $20,000
Net Present Value (x)
Discuss the risk and profitability aspects of the proposed capital

expenditure.
M
BApp
115. Monette Construction, Inc. is preparing to bid on a major

roadway construction project. PERT analysis indicates that
project time is normallly distributed with a  of 600 day and a 
of 20 days. The Request for Bids states that the project must be
complete within 635 days. The winner of the bid will be assess a
penalty of $1,000 per day for each day the project extends
beyond 635 days.
0.45
0.40
0.35
0.30
0.25
f(x)
0.20
0.15
0.10
0.05
0.00
500 525 550 575 600 625 650 675 700
Project Time (days)
Discuss the risks to Monette Construction assuming it wins the

bid.
M
BApp
Discuss the risk and profitability aspects of the proposed capital

expenditure.
250 Test Bank
What are Nominal, Ordinal, Interval and Ratio

Scales?
Nominal, Ordinal, Interval and Ratio are defined as the four fundamental levels
of measurement scales that are used to capture data in the form
of surveys and questionnaires, each being a multiple choice question.
Each scale is an incremental level of measurement, meaning, each scale

fulfills the function of the previous scale and all survey question scales such
as Likert, Semantic Differential, Dichotomous etc, are the derivation of this
these 4 fundamental levels of variable measurement. Before we discuss all
four levels of measurement scales in details, with examples, let’s have a quick
brief look at what these scales represent.
Nominal scale is a naming scale, where variables are simply “named” or

labeled, with no specific order. Ordinal scale has all its variables in a specific
order, beyond just naming them. Interval scale offers labels, order, as well as,
a specific interval between each of its variable options. Ratio scale bears all
the characteristics of an interval scale, in addition to that, it can also

accommodate the value of “zero” on any of its variables.
More on Nominal, Ordinal, Interval, Ratio: The four levels of measurement in

research and statistics.
Nominal Scale: 1st Level of Measurement

Nominal Scale, also called the categorical variable scale, is defined as a scale
used for labeling variables into distinct classifications and doesn’t involve a
quantitative value or order. This scale is the simplest of the four variable
measurement scales. Calculations done on these variables will be futile as
there is no numerical value of the options.
There are cases where this scale is used for the purpose of classification – the
numbers associated with variables of this scale are only tags for
categorization or division. Calculations done on these numbers will be futile as
they have no quantitative significance.
For a question such as:
Where do you live?
 1- Suburbs
 2- City
 3- Town
Nominal scale is often used in research surveys and questionnaires where
only variable labels hold significance.
For instance, a customer survey asking “Which brand of smartphones do you

prefer?” Options : “Apple”- 1 , “Samsung”-2, “OnePlus”-3.
 In this survey question, only the names of the brands are significant for
the researcher conducting consumer research. There is no need for any
specific order for these brands. However, while capturing nominal data,
researchers conduct analysis based on the associated labels.
 In the above example, when a survey respondent selects Apple as their
preferred brand, the data entered and associated will be “1”. This helped in
quantifying and answering the final question – How many respondents
252 Test Bank
selected Apple, how many selected Samsung, and how many went for
OnePlus – and which one is the highest.
 This is the fundamental of quantitative research., and Nominal
scale is the most fundamental research scale.
Nominal Scale Data and Analysis
There are two primary ways in which nominal scale data can be collected:
1. By asking an open-ended question, the answers of which can be coded

to a respective number of label decided by the researcher.
2. The other alternative is to include a multiple choice question in which
the answers will be labeled.
In both the cases, the analysis of gathered data will happen using percentages
or mode,i.e., the most common answer received for the question. It is possible
for a single question to have more than one modes as it is possible for two
common favorites can exist in a target population.
Nominal Scale Examples

 Gender
 Political preferences
 Place of residence
What is your Gender? What is your Political preference? Where do you live?
 1- Independent  1- Suburbs
 M- Male
 2- Democrat  2- City
 F- Female
 3- Republican  3- Town
Ordinal Scale: 2nd Level of Measurement

Ordinal Scale is defined as a variable measurement scale used to simply
depict the order of variables and not the difference between each of the
variables. These scales are generally used to depict non-mathematical ideas
such as frequency, satisfaction, happiness, a degree of pain etc. It is quite
straightforward to remember the implementation of this scale as ‘Ordinal’
sounds similar to ‘Order’, which is exactly the purpose of this scale.
Ordinal Scale maintains descriptional qualities along with an intrinsic order but
is void of an origin of scale and thus, the distance between variables can’t
be calculated. Descriptional qualities indicate tagging properties similar to the
nominal scale, in addition to which, ordinal scale also has a relative position of
variables. Origin of this scale is absent due to which there is no fixed start or
“true zero”.
Status at workplace, tournament team rankings, order of product quality,

order of agreement or satisfaction – some of the most common
examples of Ordinal Scale. These scales are generally used in market
research to gather and evaluate relative feedback about product
satisfaction, changing perceptions with product upgrades etc.
For example, a semantic differential scale question such as:
How satisfied are you with our services?
 Very Unsatisfied – 1
 Unsatisfied – 2
 Neutral – 3
 Satisfied – 4
 Very Satisfied – 5
1. Here, the order of variables is of prime importance and so is the
labeling. Very unsatisfied will always be worse than unsatisfied and satisfied
will be worse than very satisfied.
2. This is where ordinal scale is a step above nominal scale – the order is
relevant to the results and so is their naming.
3. Analyzing results based on the order along with the name becomes a
convenient process for the researcher.
4. If they intend to obtain more information than what they would collect
using nominal scale, they can use ordinal scale.
Ordinal Data and Analysis

Ordinal scale data can be presented in tabular or graphical formats for a
researcher to conduct convenient analysis of collected data. Also, methods
such as Mann-Whitney U test and Kruskal–Wallis H test can also be used to
analyze ordinal data. These methods are generally implemented to compare
two or more ordinal groups.
In the Mann-Whitney U test, researchers can conclude which variable of one

group is bigger or smaller than another variable of a randomly selected group.
254 Test Bank
While in the Kruskal–Wallis H test, researchers can analyze whether two or

more ordinal groups have the same median or not.
Ordinal Scale Examples

This scale not only assigns values to the variables but also measures the rank
or order of the variables, such as:
 Grades
 Satisfaction
 Happiness
How satisfied are you with our services?
 1- Very Unsatisfied
 2- Unsatisfied
 3- Neural
 4- Satisfied
 5- Very Satisfied
Learn about: Nominal vs. Ordinal Scale
Interval Scale: 3rd Level of Measurement

Interval Scale is defined as a numerical scale where the order of the
variables is known as well as the difference between these variables.
Variables which have familiar, constant and computable differences are
classified using the Interval scale. It is easy to remember the primary role of
this scale too, ‘Interval’ indicates ‘distance between two entities’, which is what
Interval scale helps in achieving.
These scales are effective as they open doors for the statistical analysis of
provided data. Mean, median or mode can be used to calculate the central
tendency in this scale. The only drawback of this scale is that there no pre-
decided starting point or a true zero value.
Interval scale contains all the properties of ordinal scale, in addition to which, it
offers a calculation of the difference between variables. The main
characteristic of this scale is the equidistant difference between objects.
For instance, consider a Celsius/Fahrenheit temperature scale –

 80 degrees is always higher than 50 degrees and the difference

between these two temperatures is the same as the difference between
70 degrees and 40 degrees.
 Also, the value of 0 is arbitrary because negative values of
temperature do exist – which makes Celsius/Fahrenheit temperature
scale a classic example of interval scale.
 Interval scale is often chosen in research cases where the
difference between variables is a mandate – which can’t be achieved
using nominal or ordinal scale. Interval scale quantifies the difference
between two variables whereas the other two scales are solely capable
of associating qualitative values with variables.
 The mean and median values in an ordinal scale can be evaluated,
unlike the previous two scales.
 In statistics, interval scale is frequently used as a numerical value
can not only be assigned to variables but calculation on the basis of
those values can also be carried out.
Even if interval scales are amazing, they do not calculate the “true zero”
value which is why the next scale comes into the picture.
Interval Data and Analysis

All the techniques applicable to nominal and ordinal data analysis are
applicable to Interval Data as well. Apart from those techniques, there are a
few analysis methods such as descriptive statistics, correlation
regression analysis which is extensively for analyzing interval data.
Descriptive statistics is the term given to analysis of numerical data which
helps to describe, depict or summarize data in a meaningful manner and it
helps in calculation of mean, median, and mode.
Interval Scale Examples

 There are situations where attitude scales are considered to be interval
scales.
 Apart from the temperature scale, time is also a very common example
of interval scale as the values are already established, constant and
measurable.
 Calendar years and time also fall under this category of measurement
scales.
 Likert scale, Net Promoter Score, Semantic Differential Scale, Bipolar
Matrix Table etc. are the most-used interval scale examples.
256 Test Bank
The following questions fall under the Interval Scale category:
 What is your family income?

 What is the temperature in your city?
Ratio Scale: 4th Level of Measurement
Ratio Scale is defined as a variable measurement scale that not only produces
the order of variables but also makes the difference between variables known
along with information on the value of true zero. It is calculated by assuming
that the variables have an option for zero, the difference between the two
variables is the same and there is a specific order between the options.
With the option of true zero, varied inferential and descriptive analysis
techniques can be applied to the variables. In addition to the fact that the ratio
scale does everything that a nominal, ordinal and interval scale can do, it can
also establish the value of absolute zero. Best examples of ratio scales are
weight and height. In market research, a ratio scale is used to calculate
market share, annual sales, the price of an upcoming product, number of
consumers etc.
 Ratio scale provides the most detailed information as researchers and

statisticians can calculate the central tendency using statistical techniques
such as mean, median, mode and methods such as geometric mean, the
coefficient of variation or harmonic mean can also be used on this scale.
 Ratio scale accommodates the characteristic of three other variable
measurement scales, i.e. labeling the variables, the significance of the order
of variables and a calculable difference between variables (which are usually
equidistant).
 Because of the existence of true zero value, the ratio scale doesn’t have
negative values.
 To decide when to use a ratio scale, the researcher must observe
whether the variables have all the characteristic of an interval scale along
with the presence of the absolute zero value.
 Mean, mode and median can be calculated using the ratio scale.
Ratio Data and Analysis
At a fundamental level, Ratio scale data is quantitative in nature due to which
all quantitative analysis techniques such as SWOT, TURF, Cross-
tabulation, Conjoint etc. can be used to calculate ratio data. While some
techniques such as SWOT and TURF will analyze ratio data in such as
manner that researchers can create roadmaps of how to improve products or

services and Cross-tabulation will be useful in understanding whether new
features will be helpful to the target market or not.
Ratio Scale Examples

The following questions fall under the Ratio Scale category:
 What is your daughter’s current height?

 Less than 5 feet.
 5 feet 1 inch – 5 feet 5 inches
 5 feet 6 inches- 6 feet
 More than 6 feet
 What is your weight in kilograms?
 Less than 50 kilograms
 51- 70 kilograms
 71- 90 kilograms
 91-110 kilograms
 More than 110 kilograms
Learn about: Interval vs. Ratio Scale
Summary – Levels of Measurement

Offers: Nominal Ordinal Interval Ratio
The sequence of variables is established – Yes Yes Yes
Mode Yes Yes Yes Yes
Median – Yes Yes Yes
Mean – – Yes Yes
Difference between variables can be evaluated – – Yes Yes
Addition and Subtraction of variables – – Yes Yes
Multiplication and Division of variables – – – Yes
Absolute zero – – – Yes
SUMMARISING AND PRESENTING DATA

TYPES OF VARIABLE
258 Test Bank
It is useful to distinguish between two broad types of variables:

qualitative and quantitative (or numeric). Each is broken down into
two sub-types: qualitative data can be ordinal or nominal, and
numeric data can be discrete (often, integer) or continuous.
Because qualitative data always have a limited number of alternative values, such
variables are also described as discrete. All qualitative data are discrete, while some
numeric data are discrete and some are continuous.
For statistical analysis, qualitative data can be converted into discrete numeric data by
simply counting the different values that appear.
Note: the word "variable" is used in two senses. It can mean an item of data collected
on each sampling unit, and it can mean "random variable". A random variable is a
variable in the mathematical sense, but one that takes different values according to a
probability distribution. The word "variate" is also sometimes used to mean random
variable. In Statistics, we use random variables to build probability models for data
variables. This makes sense because when data are collected on observational units
sampled at random, the values recorded for the data variables can be regarded as
realisations of mathematical random variables.
Qualitative Data
Qualitative data arise when the observations fall into separate distinct categories.
Examples are:
Colour of eyes : blue, green, brown etc
Exam result : pass or fail
Socio-economic status : low, middle or high.
Such data are inherently discrete, in that there are a finite number of possible
categories into which each observation may fall.
Data are classified as:
nominal if there is no natural order between the categories (eg eye colour), or
ordinal if an ordering exists (eg exam results, socio-economic status).
Quantitative Data
Quantitative or numerical data arise when the observations are counts or
measurements. The data are said to be discrete if the measurements are integers (eg
number of people in a household, number of cigarettes smoked per day)
and continuous if the measurements can take on any value, usually within some range
(eg weight).
Quantities such as sex and weight are called variables, because the value of these
quantities vary from one observation to another. Numbers calculated to describe
important features of the data are called statistics. For example, (i) the proportion of
females, and (ii) the average age of unemployed persons, in a sample of residents of a
town are statistics.
The following table shows a part of some (hypothetical) data on a group of
48 subjects.
'Age' and 'income' are continuous numeric variables,
'age group' is an ordinal qualitative variable,
and 'sex' is a nominal qualitative variable.
The ordinal variable 'age group' is created from the continuous variable 'age' using five
categories:
age group = 1 if age is less than 20;
age group = 2 if age is 20 to 29;
age group = 5 if age is 50 or more
Table - Hypothetical Data
Age Age Annual
Subject Se
(year Grou Income
No x
s) p (x $10,000)
1 32 3 4.1 F
2 20 2 1.5 M
3 45 4 2.3 F
. . . . .
. . . . .
47 19 1 0.5 F
48 32 3 1.9 F
Progress check
1.
A person's highest educational level is which type of variable?
o continuous
260 Test Bank
o discrete numeric
o ordinal
o nominal
Yes!
2.
The number of motor-vehicle accidents on a particular stretch
of the Pacific Highway in a week is which type of variable?
o continuous
o discrete numeric
o nominal
o ordinal
Yes!
3.
Nominal data are often analysed in the form of:
o counts
o averages
o ranks
Terms in this set (67)
Statistics, parameters
"Samples produce____________, populations produce _________"
Mean
Which of the following provides a measure of central location for the data?
Sample statistic
A numerical value used as a summary measure for a sample, such as sample mean, is
known as
Can be smaller, larger, or equal to the population parameter

Since the population size is always larger than the sample size, then the sample
statistic
A. Can never be larger than the population parameter

B. Can never be equal to the population parameter
C. Can be smaller, larger, or equal to the population parameter
D. Can never be smaller than the population parameter
Population Parameter
μ
0.30%
The hourly wages of a sample of 130 system analysts are given below
mean=60
mode=73
median=74
range=20
variance=324
The coefficient of variation equals...?
24
The variance of a sample of 169 observations equals 576. The standard deviation of
the sample equals..?
50th percentile
The median of a sample will always equal the
central location
the median is a measure of
third quartile
the 75th percentile is referred to as the
less than or equal to this value

the "p"th percentile is a value such that at least p percent of the observations are
A. Less than or equal to this value
B. Less than this value
C. More than or equal to this value
D. More than this value
Range
The difference between the largest and the smallest data values are
262 Test Bank
The First Quartile

the same as the 25th percentile
Variance
Which of the following is not a measure of central location?
A. Mean
B. Median
C. Variance
D. Mode
The average value of the two middle items when all items are arranged in
ascending order
If a data set has an even number of observations, the median
A. Cannot be determined
B. Is the average value of the two middle terms
C. Must be equal to the mean
D. Is the average value of the two middle items when all items are arranged in
ascending order
Interquartile Range
Which of the following is a measure of dispersion?
A. Percentiles
B. Quartiles
C. Interquartile Range
D. All of the above are measures of dispersion
Mode
The most frequently occurring value of a data set is called the
Interquartile Range
the difference between the third quartile and the first quartile
Rounded up
If index "i" (which is used to determine the location of the "p"th) is not an integer, its
value should be
A. squared
B. divided by (n-1)
C. rounded down
D. rounded up
Positive
When the data are skewed to the right, the measure of skewness will be
A. negative
B. zero
C. positive
D. one
Greater than the median

When data are positively skewed, the mean will usually be
A. greater than the median
B. smaller than the median
C. equal to the median
D. positive
50th Percentile
Which of the following is not a measure of dispersion?
A. the range
B. the 50th percentile
C. the standard deviation
D. the interquartile range
the range is influenced too much by extreme values

The interquartile range is used as a measure of variability to overcome what difficulty of
the range?
A. the sum of the range variances is zero
B. the range is difficult to compute
C. the range is influenced too much by extreme values
D. the range is negative
the data set is a sample

If the variance of a data set is correctly computed with the formula using (n-1) in the
denominator, which of the following is true?
A. the data set is a sample

B. the data set is a population
C. the data set could be either a sample or a population
D. the data set is from a census
data values are treated as if they occur at the midpoint of a class

In computing descriptive statistics from grouped data (like a frequency histogram),
A. data values are treated as if they occur at the midpoint of a class
B. the grouped data result is more accurate than the ungrouped result
C. the grouped data computations are used only when a population is being analyzed
D. None of these alternatives is correct
range
The measure of dispersion that is influenced most by extreme values is
A. variance
264 Test Bank
B. standard deviation
C. range
D. interquartile range
only when individual data values are unavailable

When should measures of location and dispersion be computed from grouped data
rather than from individual data values?
A. as much as possible since computations are easier
B. only when individual data values are unavailable
C. whenever computer packages from descriptive statistics are unavailable
D. only when the data are from a population
standard deviation
The descriptive measure of dispersion that is based on the concept of a deviation
about the mean is
A. range
B. interquartile range
C. absolute value of the range
D. standard deviation
mean
The measure of location which is the most likely to be influenced by extreme values in
the data set is the
A. range
B. median
C. mode
D. mean
mean
The most important statistical descriptive measure of the location of a data set is the
A. mean
B. median
C. mode
D. variance
Negative
The numerical value of the standard deviation can never be
A. larger than the variance
B. zero
C. negative
D. smaller than the variance
Sample Variance
Could be smaller, equal to, or larger than the true value of the population variance
Negative
The variance can never be
A. Zero
B. Larger than the standard deviation
C. Negative
D. Smaller than the standard deviation
None of these alternatives is correct

If two groups of numbers have the same mean, then
A. their standard deviations must also be equal
B. their medians must also be equal
C. their modes must also be equal
D. None of these alternatives is correct
Always equal to zero

The sum of deviations of the individual data elements from their mean is
A. always greater than zero
B. always less than zero
C. sometimes greater than and sometimes less than zero, depending on the data
elements
D. always equal to zero
standard deviation of the population

σ
mean of the population
μ
variance of the population

σ²
size of the population

N
mean of the sample

xx
size of the sample

n
266 Test Bank
Covariance
A numerical measure of linear association between two variables is the
Positive relation between the independent and the dependent variables

Positive values of covariance indicate
A. a positive variance of the x values
B. a positive variance of the y values
C. the standard deviation is positive
D. positive relation between the independent and the dependent variables
Correlation Coefficient
A numerical measure of linear association between two variables
-1 and +1
The coefficient of correlation ranges between
A. 0 and 1
B. -1 and +1
C. minus infinity and plus infinity
D. 1 and 100
Cannot be larger than 1

The coefficient of correlation
A. is the same as the coefficient of determination
B. can be larger than 1
C. cannot be larger than 1
D. cannot be negative
the trimmed mean

When the smallest and largest percentage of times are removed from a data set and
the mean is computed, the mean of the remaining is
A. the median
B. the mode
C. the trimmed mean
D. any of the above
Must be at least zero

During a cold weather, the temperature stayed below zero for ten days (ranging from
-20 to -5). The variance of the temperature of the ten day period
A. is negative since all the numbers are negative
B. must be at least zero
C. cannot be computer since all the numbers are negative
D. can be either negative or positive
Mode
A. mode
B. standard deviation
C. range
D. interquartile range
None of these alternatives is correct

Since the mode is the most frequently occurring data value, it
A. can never be larger than the mean
B. is always larger than the median
C. is always larger than the mean
D. none of these alternatives is correct
6
A researcher has collected the following sample data:
5
6
12
7
6
5
8
12
5
4
The median is...?
5
5
6
12
7
6
5
268 Test Bank
8
12
5
4
The mode is...?
7
5
6
12
7
6
5
8
12
5
4
The mean is...?
8
5
6
12
7
6
5
8
12
5
4
The 75th percentile is...?
16.5
A researcher has collected the following 5 data points:
3
5
12
3
2
The variance is...?
Hint : X bar (mean) = (3+5+12+3+2)/5=5
Variance s2= Sum ((xi-xbar))2/ (n-1)= (3-5)2+(5-5)2+(12-5)2+(3-5)2+(2-5)2/ 5-1

=4+0+49+4+9/ 4
=66/4=16.5
4.062
3
5
12
3
2
The standard deviation is...?
Hint : Standard Dev= Sq root of variance= sq. root of 16.5=4.062
81.24%
3
5
12
3
2
The coefficient of variation is...?
Hint : Coefficient of Variation = (Standard Deviation / Mean) * 100.
=(4.062/5)100=81.24%
10
3
5
12
3
2
The range is...?
6
3
5
12
3
2
The interquartile range is...?
270 Test Bank
Arrange in order 2,3,3,5,12
Q2=3
Q1=2+3/2=2.5
Q3=5+12/2=8.5
IQR= (q3-q1)=(8.5-2.5)=6
First, we need to put the data in order from smallest to largest.

21,25,27,31,32,37,43,45,49
Q2 = median of the overall data set
Q1 = median of the lower half of the data
Q3 = median of the upper half of the data
Q2=32
32 is the overall median, leaving 21,25,27,31 as the lower half of the data
and 37,43,45,49 as the upper half of the data.
The median of the lower half falls between two values.
Q1=25+27/2=26
The median of the upper half falls between two values.
Q3=43+45/2=44
The interquartile range is the difference between the third and first quartiles.
Q3−Q1=44−26=18
67
The following is the frequency distribution for the speeds of a sample of automobiles
traveling on an interstate highway.
Speed (mph) Frequency(f) midpoint of speed(x) product x.f (x-xbar)2 f.(x-xbar)2

50-54 2 52 104 225 450
55-59 4 57 228 100 400
60-64 5 62 310 25 125
65-69 10 67 670 0 0
70-74 9 72 648 25 225
75-79 5 77 385 100 500
----
Total 35 2345 1700
The mean is...?
Mean= 2345/35=67 Ans

Calculating the Mean
1. In Tim's school, there are 25 teachers. Each teacher travels to school every morning in his or
her own car. The distribution of the driving times (in minutes) from home to school for the
teachers is shown in the table below:
Driving Times (minutes) Number of Teachers
0 to less than 10 3
10 to less than 20 10
The driving times are given for all 25 teachers, so the data is for a population.
Calculate the mean of the driving times.
Step 1: Determine the midpoint for each interval.
For 0 to less than 10, the midpoint is 5.
Step 2: Multiply each midpoint by the frequency for the class.
For 0 to less than 10, (5)(3)=15
For 10 to less than 20, (15)(10)=150
For 20 to less than 30, (25)(6)=150
For 30 to less than 40, (35)(4)=140
For 40 to less than 50, (45)(2)=90
Step 3: Add the results from Step 2 and divide the sum by 25.
272 Test Bank
15+150+150+140+90μ=545=54525=21.8
Each teacher spends a mean time of 21.8 minutes driving from home to school each
morning.
To better represent the problem and its solution, a table can be drawn as follows:
Driving Times (minutes) Number of Teachers f Midpoint Of Class m Product mf
0 to less than 10 3 5 15
10 to less than 20 10 15 150
20 to less than 30 6 25 150
30 to less than 40 4 35 140
40 to less than 50 2 45 90
For the population, N=25 and ∑mf=545, so using the formula μ=∑mfN, the mean
would again be μ=54525=21.8.
50
Speed (mph) Frequency

50-54 2
55-59 4
60-64 5
65-69 10
70-74 9
75-79 5
----
35
The variance is...?
Hint : Summation f.(x-xbar)2/ (summation frequency-1) =1700/34=50
7.071
Speed (mph) Frequency
50-54 2
55-59 4
60-64 5
65-69 10
70-74 9
75-79 5
----
35
The standard deviation is...?
Hint : Sq root of variance = sq rt 50=7.071
Decrease
The average age of students at KSU increased from 22 with a standard deviation of
3.96 to an average age of 24 with a standard deviation of 4.08. The relative dispersion
around the mean
A. Decrease
B. Increase
C. Stayed the same
D. Disappeared
19.286
The following observations are given for two variables:
yx
52
8 12
18 3
20 6
22 11
30 19
10 18
79
What is the sample covariance...?
Soln: Ybar=5+8+18+20+22+30+10+7/8=120/8=15
Xbar=2+12+3+6+11+19+18+9/8=80/8=10
Cov(y,x)= (5-15)(2-10)+(8-15)(12-10)+(18-15)(3-10)+(20-15)(6-10)+(22-15)(11-10)+(30-
15)(19-10)+(10-15)(18-10)+(7-15)(9-10)/ (8-1)
= 80-14-21-20+7+135-40+8/7
= 135/7=19.286
For a sample covariance, the formula is slightly adjusted:

274 Test Bank
Where:
 Xi – the values of the X-variable
 Yj – the values of the Y-variable
 XX – the mean (average) of the X-variable
 Ȳ – the mean (average) of the Y-variable
 n – the number of the data points
6.32
yx
52
8 12
18 3
20 6
22 11
30 19
10 18
79
What is the standard deviation for x?
Hint : Here X bar=10

Variance = Summation f.(x-xbar)2/ (summation frequency-1) = (10-2)2+(10-12)2+…/
(8-1)= 64+4+49+16+1+81+64+1/7=280/7=40
Hence Std Deviation= Sq root of variance = sq rt 40=6.32 Ans
8.83
yx
52
8 12
18 3
20 6
22 11
30 19
10 18
79
What is the standard deviation for y?
Hint Here Y Bar = 15

Therefore Std Dev = SqRt of VariAnce = Sq rt of
(100+49+9+25+49+225+25+64/7)=8.83
0.345
yx
52
8 12
18 3
20 6
22 11
30 19
10 18
79
What is the sample correlation coefficient?
"Samples produce _____, populations produce______."

a.) statistics, parameters
b.) parameters, statistics
c.) statistics, statistics
d.) Parameters, parameters
A
Which of the following provides a measure of central location for the data?
a.) standard deviation
b.) mean
c.) variance
d.) range
B
A numerical value used as a summary measure for a sample, such as a
sample mean, is known as a
276 Test Bank
a.) sample slapstick

b.) sample sadistic
c.) sample statistic
d.) sample static
C
Since the population size is always larger than the sample size, then the
sample statistic
a.) can never be larger than the population parameter
b.) can never be equal to the population parameter
c.) can be smaller, large, or equal to the population parameter
d.) can never be smaller than the population parameter
C
μ is an example of a
a.) population parameter
b.) sample statistic
c.) population variance
d.) mode
A
The hourly wages of a sample of 130 system analysts are given below.
mean = 60
mode = 73
median = 74
range = 20
variance = 324
a.) 0.30%
b.) 30%
c.) 5.4%
d.) 54%
B
The variance of a sample of 169 observations equals 576. The standard
deviation of the sample equals
a.) 13
b.) 24
c.) 576
d.) 28,461
B
The median of a sample will always equal the
a.) mode
b.) mean
c.) 50th percentile
d.) all of the above answers are correct
C
The median is a measure of

a.) relative dispersion
b.) absolute dispersion
c.) central location
d.) relative location
C
The 75th percentile is referred to as the
a.) first quartile
b.) second quartile
c.) third quartile
d.) fourth quartile
C
The pth percentile is a value such that at least p percent of the observations
are
a.) less than or equal to this value
b.) less than this value
c.) more than or equal to this value
d.) more than this value
A
The difference between the largest and the smallest data values is the
a.) variance
b.) interquartile range
c.) range
d.) coefficient of variation
C
The first quartile
a.) contains at least one third of the data elements
b.) is the same as the 25th percentile
c.) is the same as the 50th percentile
d.) is the same as the 75th percentile
B
Which of the following is not a measure of central location?
a.) mean
b.) median
c.) variance
d.) mode
C
If a data set has an even number of observations, the median
a.) cannot be determined
b.) is the average value of the two middle items
c.) must be equal to the mean
d.) is the average value of the two middle items when all items are arranged
in ascending order
D
278 Test Bank
Which of the following is a measure of dispersion?

a.) percentiles
b.) quartiles
c.) interquartile range
d.) all of the above are measures of dispersion
C
The most frequently occurring value of a data set is called the
a.) range
b.) mode
c.) mean
d.) median
B
The interquartile range is
a.) the 50th percentile
b.) another name for the variance
c.) the difference between the largest and smallest values
d.) the difference between the third quartile and the first quartile
D
If index i (which is used to determine the location of the pth percentile) is
not an integer, its value should be
a.) squared
b.) divided by (n-1)
c.) rounded down
d.) rounded up
D
When the data are skewed to the right, the measure of Skewness will be
a.) negative
b.) zero
c.) positive
d.) one
C
When data are positively skewed, the mean will usually be
a.) greater than the median
b.) smaller than the median
c.) equal to the median
d.) positive
A
a.) the range
b.) the 50th percentile
c.) the standard deviation
d.) the interquartile range
B
The interquartile range is used as a measure of variability to overcome what

difficulty of the range?
a.) the sum of the range variances is zero
b.) the range is difficult to compute
c.) the range is influenced too much by extreme values
d.) the range is negative
C
If the variance of a data set is correctly computed with the formula using n-1
in the denominator, which of the following is true?
a.) the data set is a sample
b.) the data set is a population
c.) the data set could be either a sample or a population
d.) the data set is from a census
A
In computing descriptive statistics from grouped data (like a frequency
histogram),
a.) data values are treated as if they occur at the midpoint of a class
b.) the grouped data result is more accurate than the ungrouped result
c.) the grouped data computations are used only when a population is being
analyzed
d.) None of these alternative is correct.
A
The measure of dispersion that is influenced by most extreme values is
a.) the variance
b.) the standard deviation
c.) the range
d.) the interquartile range
C
When should measures of location and dispersion be computed from
grouped data rather than from individual data values?
a.) as much as possible since computations are easier
b.) only when individual data values are unavailable
c.) whenever computer packages for descriptive statistics are unavailable
d.) only when the data are from a population
B
The descriptive measure of dispersion that is based on the concept of a
deviation about the mean is
a.) the range
b.) the interquartile range
c.) the absolute value of the range
d.) the standard deviation
D
The measure of location which is the most likely to be influenced by extreme
values in the data set is the
280 Test Bank
a.) range
b.) median
c.) mode
d.) mean
D
The most important statistical descriptive measure of the location of a data
set is the
a.) mean
b.) median
c.) mode
d.) variance
A
The numerical value of the standard deviation can never be
a.) larger than the variance
b.) zero
c.) negative
d.) smaller than the variance
C
The sample variance
a.) is always smaller than the true value of the population variance
b.) is always larger than the true value of the population variance
c.) could be smaller, equal to, or larger than the true value of the population
variance
d.) can never be zero
C
The variance can never be
a.) zero
b.) larger than the standard deviation
c.) negative
d.) smaller than the standard deviation
C
If two groups of numbers have the same mean, then
a.) their standard deviations must also be equal
b.) their medians must also be equal
c.) their modes must also be equal
d.) None of these alternative is correct
D
The sum of deviations of the individual data elements from their mean is
a.) always greater than zero
b.) always less than zero
c.) sometimes greater than and sometimes less than zero, depending on the
data elements
d.) always equal to zero
D
Which of the following symbols represents the standard deviation of the

population?
B
Which of the following symbols represents the mean of the population?
C
Which of the following symbols represents the variance of the population?
A
Which of the following symbols represents the size of the population?
D
Which of the following symbols represents the mean of the sample?
D
Which of the following symbols represents the size of the sample?
D
The symbol sigma is used to represent
a.) the variance of the population
b.) the standard deviation of the sample
c.) the standard deviation of the population
d.) the variance of the sample
C
The symbol sigma2 is used to represent
a.) the variance of the population
b.) the standard deviation of the sample
c.) the standard deviation of the population
d.) the variance of the sample
A
a.) variance
b.) covariance
c.) standard deviation
d.) coefficient of variation
B
Positive values of covariance indicate
a.) a positive variance of the x values
b.) a positive variance of the y values
c.) the standard deviation is positive
d.) positive relation between the independent and the dependent variables
D
a.) variance
b.) coefficient of variation
c.) correlation coefficient
d.) standard deviation
C
282 Test Bank
The coefficient of correlation ranges between

a.) 0 and 1
b.) -1 and +1
c.) minus infinity and plus infinity
d.) 1 and 100
B
The coefficient of correlation
a.) is the same as the coefficient of determination
b.) can be larger than 1
c.) cannot be larger than 1
d.) cannot be negative
C
When the smallest and largest percentage of items are removed from a data
set and the mean is computed, the mean of the remaining data is
a.) the median
b.) the mode
c.) the trimmed mean
d.) any of the above
C
During a cold winter, the temperature stayed below zero for ten days
(ranging from -20 to -5). The variance of the temperatures of the ten day
period
a.) is negative since all the numbers are negative
b.) must be at least zero
c.) cannot be computed since all the numbers are negative
d.) can be either negative or positive
B
a.) mode
b.) standard deviation
c.) range
d.) interquartile range
A
Since the mode is the most frequently occurring data value, it
a.) can never be larger than the mean
b.) is always larger than the median
c.) is always larger than the mean
d.) None of these alternative is correct
D
A researcher has collected the following sample data
5, 12, 6, 8, 5, 6, 7, 5, 12, 4
Refer to scenario 1. The median is

a.) 5
b.) 6
c.) 7
d.) 8
B
Refer to scenario 1. The mode is
a.) 5
b.) 6
c.) 7
d.) 8
A
Refer to scenario 1. The mean is
a.) 5
b.) 6
c.) 7
d.) 8
C
Refer to scenario 1. The 75th percentile is
a.) 5
b.) 6
c.) 7
d.) 8
D
Scenario 2: A researcher has collected the following five data points.
Refer to scenario 2. The variance is

a.) 80
b.) 4.062
c.) 13.2
d.) 16.5
D
Refer to scenario 2. The standard deviation is
a.) 8.944
b.) 4.062
c.) 13.2
d.) 16.5
B
Refer to scenario 2. The coefficient of variatinon is
a.) 72.66%
b.) 81.24%
c.) 264%
d.) 330%
B
Refer to scenario 2. The range is
a.) 1
284 Test Bank
b.) 2
c.) 10
d.) 12
C
Refer to scenario 2. The interquartile range is
a.) 1
b.) 2
c.) 10
d.) 12
B
Scenario 3: The following is the frequency distribution for the speeds of a
sample of automobiles traveling on an interstate highway.
Speed/Freq
50-24/2
55-59/4
60-64/5
65-69/10
70-74/9
75-79/5
Tot freq: 35
Refer to scenario 3. The mean is

a.) 35
b.) 670
c.) 10
d.) 67
D
Refer to scenario 3. The variance is
a.) 6.969
b.) 7.071
c.) 48.570
d.) 50.00
D
Refer to scenario 3. The standard deviation is
a.) 6.969
b.) 7.071
c.) 48.570
d.) 50.00
B
The average age of students at KSU increased from 22 with a standard
deviation of 3.96 to an average age of 24 with a standard deviation of 4.08.
The relative dispersion around the mean
a.) Decrease
b.) Increase
c.) Stayed the same

d.) Disappeared
A
The following observations are given for two variables.
y/x
5/2
8/12
18/3
20/6
22/11
30/19
10/18
7/9
...
a.) Compute and interpret the sample covariance for the above data.
19.286
b.) Compute the standard deviation for x.
6.32
c.) Compute the standard deviation for y.
8.83
d.) Compute and interpret the sample correlation coefficient.
0.346
1). The variance of a sample of 169 observations equals 576. The standard
a. 13
b. 24
c. 576
d. 28,461
b. 24
2). The variance of a sample of 169 observations equals 576. The standard
a. 13
b. 24
c. 576
d. 28,461
b. 24
3. The measure of location which is the most likely to be influenced by
extreme values in the data set is the
a. range
b. median
c. mode
d. mean
286 Test Bank
d. mean
4.) The heights (in inches) of 25 individuals were recorded and the following
statistics were calculated
median = 74
a. 11.2%
b. 1120%
c. 0.4%
d. 40%
d. 40%
5. The descriptive measure of dispersion that is based on the concept of a
deviation about the mean is
a. the range
b. the interquartile range
c. the absolute value of the range
d. the standard deviation
d. the standard deviation
6). In computing the mean of a sample, the value of ∑xi is divided by
a. n
b. n - 1
c. n + 1
d. n - 2
a. n
7. The variance can never be
a. zero
b. larger than the standard deviation
c. negative
d. smaller than the standard deviation
c. negative
8. Which of the following provides a measure of central location for the
data?
a. standard deviation
b. mean
c. variance
d. range
b. mean
9 The pth percentile is a value such that at least p percent of the
observations are
a. less than or equal to this value
b. less than this value
c. more than or equal to this value
d. more than this value
a. less than or equal to this value

10 In computing descriptive statistics from grouped data,
a. data values are treated as if they occur at the midpoint of a class
b. the grouped data result is more accurate than the ungrouped result
c. the grouped data computations are used only when a population is being
analyzed
a. data values are treated as if they occur at the midpoint of a class
11).The hourly wages of a sample of 130 system analysts are given below.
median = 74
a. 0.30%
b. 30%
c. 5.4%
d. 54%
b. 30%
12). The median of a sample will always equal the
a. mode
b. mean
c. 50th percentile
d. all of the above answers are correct
c. 50th percentile
13) The weights (in pounds) of a sample of 36 individuals were recorded and
the following statistics were calculated.
median = 170
a. 0.1125%
b. 11.25%
c. 203.12%
d. 0.20312%
b. 11.25%
14). For which measure of central tendency will the sum of the deviations of
each value from that average always be zero?
A) Mode
B) Mean
C) Median
D) Geometric mean
E) None of the choices are correct.
B) Mean
288 Test Bank
15). Which measure of central tendency is used to determine the average

annual percent increase?
A) Arithmetic mean
B) Weighted mean
C) Mode
D) Geometric mean
E) Median
D) Geometric mean

Management Quizz

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Management Quizz

Caricato da

Copyright:

Formati disponibili

CHAPTER FOUR

• 2. State whether the following question provided is qualitative or quantitative data

Ans a). Age: Quantitative; ratio scale of measurement

3. What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15}

mode = 73 variance = 324

The coefficient of variation equals

6. The median of a sample will always equal the

d. all of the above answers are correct

d. a simple random sample

8. Which of the following sampling methods is a probabilistic sampling method?

d. None of these alternatives is correct.

10. Nodes indicating points where a decision is made are known as

11. In computing an expected value (EV), the weights are

a. decision alternative probabilities

b. in pounds or some unit of weight

c. in dollars or some units of currency

d. the state-of-nature probabilities

Decision States of Nature

c. Both alternatives are the same.

d. None of these alternatives is correct.

a. must also be positive

c. can be either negative or positive

d. must be larger than 1

a. one independent and one or more dependent variables are related

b. several independent and several dependent variables are related

c. one dependent and one or more independent variables are related

d. None of these alternatives is correct.

17. As the sample size increases, the margin of error

d. increases or decreases depending on the size of the mean

a. N/n > 0.05

c. n/N > 0.05

a. 2.6 and 5.77

b. 0.26 and 0.577

1. What type of variable is each of the following?

B 2. A process that produces outcomes is called _______.

A 3. Assigning probabilities by dividing the number of ways that an

A 4. The method of assigning probabilities based on rules and laws is

B 5. Using cumulated historical data to assign probabilities is called

C 6. Abel Alonzo, Director of Human Resources, is exploring

A 7. Belinda Bose is reviewing a newly proposed advertising

C 8. The probability of a “2” on a fair toss of a fair die is 1/6. This is

D 9. Suzanne purchased a new microcomputer for each of her six

C 10. The method of assigning probabilities based on the insight or

B 12. Which of the following is a legitimate probability value?

A 15. The list of all elementary events for an experiment is called

E A. the sample space

D 16. In a set of 15 aluminum castings, two castings are defective (D),

B 17. In a set of 15 aluminum castings, two castings are defective (D),

D 18. In a set of 10 aluminum castings, two castings are defective (D),

A 19. In a set of 10 aluminum castings, two castings are defective (D),

A 20. In a set of 100 purchasing transactions, two transactions

D 21. In a set of 100 purchasing transactions, two transactions

M A. it is not in the union of X and Y

D 23. If an event is in the intersection of X and Y, then this event is

E A. not in the union of X and Y

B 24. If X and Y are mutually exclusive events, then if X occurs _______.

E A. Y must also occur

A 25. Consider the following sample space, S, and several events

B 26. Consider the following sample space, S, and several events

E A. {Albert, Betty, Jack, Patty}

D 28. Consider the following sample space, S, and several events

M A. F and M are mutually exclusive

D 30. Two events, X and Y, are complements. From this it can be