Quantitative methods for

Management
Model paper
 A survey in which customers taste five
different brands of ice cream, and rank their
favorites from 1 to 5, would be an example of
which type of scale of measurement?
Ordinal
Nominal
Interval
Ratio
 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
 Abel Alonzo, Director of Human Resources, is
exploring the causes of employee absenteeism at
Batesville Bottling during the last operating year
(January 1, 1999 through December 31, 1999). For
this study, the set of all employees who worked at
Batesville Bottling during the last operating year is
a(a)____________________.

Population Statistic Parameter Sample

 A student makes an 82 on the first test in a
statistics course. From this, she assumes that
her average at the end of the semester (after
other tests) will be about 82. This is an
example of (a)____________________.
Descriptive statistics
Inferential statistics
Nonparametric statistics
Wishful thinking
 A statistics instructor collects information about
the background of his students. About 30% have
taken economics and about 40% have taken
accounting. There are 23 male students and 27
female students in this class. This is an example
of(a)____________________.
Descriptive statistics
Inferential statistics
Nominal data
Nonparametric statistics
 Consider the following frequency distribution:-

What is the relative frequency of the first class?

(a) 0.15
(b) 0.30
(c) 0.10
(d) None of the above
 The 1999 and 2000 market share data of the three
competitors (A, B and C) in an oligopolistic industry are
presented in the following pie charts:-

Which of the following is true?

(a) Only company B gained market share
(b) Company A lost market share
(c) Only company C lost market share
(d) Company B lost market share
 A statistics student made the following grades
on 5 tests: 84, 78, 88, 72, and 72. What is the
median grade?
(a) 78
(b) 80
(c) 88
(d) 72
 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).
(a) 0.30
(b) 0.55
(c) 0.15
(d) 0.40
 Given P(A) = 0.40, P(B) = 0.50, P(A B) = 0.15.
Which of the following is true?
(a) A and B are collectively exhaustive
(b) A and B are mutually exclusive
(c) A and B are independent
(d) A and B are not independent
 Variables which take on values only at certain
points over a given interval are
called(a)____________________.
Value variables Continuous random
variables Point variables O Discrete
random variables
 The amount of time a patient waits in a
doctor's office is an example
of(a)____________________.
(a) A discrete random variable The
binomial distribution The normal
distribution A continuous random variable
 Twenty five items are sampled. Each of these
has the same probability of being defective.
The probability that exactly 2 of the 25 are
defective could best be found by using
the(a)____________________.
(a) Normal distribution Poisson
distribution Exponential
distribution Binomial distribution
 If x is a binomial random variable with n=8
and p=0.2, the variance of x is
(a)____________________.
(a) 0.96 4 1.28 1.6
 The long-run average or mean of a Poisson
distribution is usually referred to as:-
(a)
(b)
(c)
(d)
 The area to the left of the mean in any normal
distribution is(a)____________________.
Equal to 0.5 Equal to the
mean Equal to 1 Equal to the variance
 Let z be a normal random variable with mean
0 and standard deviation 1. Use the normal
tables to find P(z > 2.4).
(a) 0.4793
(b) 0.9918
(c) 0.0082
(d) 0.4918
 Regression was used to develop a model to
predict sales based on advertising dollars
spent. The equation developed is Y = 1,000 +
20X, where X is advertising dollars and Y is
sales. If $300 is spent on advertising, what
would be the best prediction for sales?
(a) $1,600
(b) $7,000
(c) $6,000
(d) None of the above
 Which of the following is an example of
nonprobabilistic sampling?
a. simple random sampling

b. stratified simple random sampling

c. cluster sampling

d. judgment sampling
 Stratified random sampling is a method of
selecting a sample in which
a. the sample is first divided into strata, and then
random samples are taken from each stratum
b. various strata are selected from the sample
c. the population is first divided into strata, and
then random samples are drawn from each
stratum
d. None of these alternatives is correct.
 A tabular representation of the payoffs for a
decision problem is a
a. decision tree
b. payoff table
c. matrix
d. sequential matrix
 For a decision alternative, the weighted
average of the payoffs is known as
a. the expected value of perfect information
b. the expected value
c. the expected probability
d. perfect information
 The number of degrees of freedom for the
appropriate chi-square distribution in a test of
independence is
a. n-1
b. K-1
c. number of rows minus 1 times number of
columns minus 1
d. a chi-square distribution is not used
 In order to determine whether or not a particular medication was
effective in curing the common cold, one group of patients was given the
medication, while another group received sugar pills. The results of the
study are shown below.We are interested in determining whether or not
the medication was effective in curing the common cold.The test statistic
is

Patients Cured Patients Not Cured

Received medication 70 10
Received sugar pills 20 50

a. 10.08
b. 54.02
c. 1.96
d. 1.645
 An assumption made about the value of a
population parameter is called a
a. hypothesis
b. conclusion
c. confidence
d. significance
 In a regression and correlation analysis if r2 =
1, then
a. SSE = SST
b. SSE = 1
c. SSR = SSE
d. SSR = SST
 If a data set has SSR = 400 and SSE = 100, then
the coefficient of determination is
a. 0.10
b. 0.25
c. 0.40
d. 0.80
 If the coefficient of correlation is 0.4, the
percentage of variation in the dependent
variable explained by the variation in the
independent variable
a. is 40%
b. is 16%.
c. is 4%
d. can be any positive value
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