Data and Statistics for Business and Economics.docx

Data and Statistics for Business and Economics MULTIPLE CHOICE 1. Methods for developing useful decision-making information from large data bases is known as a. data manipulation b. data monitoring c. data base conversion d. data mining ANS: D 2. The process of capturing, storing, and maintaining data is known as a. data manipulation b. data monitoring c. data warehousing d. category analysis ANS: C 3. The subject of data mining deals with a. methods for developing useful decision-making information from large data bases b. keeping data secure so that unauthorized individuals cannot access the data c. computational procedure for data analysis d. computing the average for data ANS: A 4. In a questionnaire, respondents are asked to mark their gender as male or female. Gender is an example of the a. ordinal scale b. nominal scale c. ratio scale d. interval scale ANS: B 5. The nominal scale of measurement has the properties of the a. ordinal scale b. only interval scale c. ratio scale d. None of these alternatives is correct. ANS: D 6. The scale of measurement that is used to rank order the observation for a variable is called the a. ratio scale b. ordinal scale c. nominal scale d. interval scale ANS: B 7. Some hotels ask their guests to rate the hotel's services as excellent, very good, good, and poor. This is an example of the a. ordinal scale b. ratio scale c. nominal scale d. interval scale ANS: A 8. The ordinal scale of measurement has the properties of the a. ratio scale b. interval scale c. nominal scale d. ratio and interval scales ANS: C 9. The ratio scale of measurement has the properties of a. only the ordinal scale b. only the nominal scale c. the rank scale d. the interval scale ANS: D 10. Temperature is an example of a variable that uses a. the ratio scale b. the interval scale c. the ordinal scale d. either the ratio or the ordinal scale ANS: B 11. The interval scale of measurement has the properties of the a. ratio and nominal scales b. ratio and ordinal scales c. ratio scale d. None of these alternatives is correct. ANS: D 12. Arithmetic operations are inappropriate for a. the ratio scale b. the interval scale c. both the ratio and interval scales d. the nominal scale ANS: D 13. Income is an example of a variable that uses the a. ratio scale b. interval scale c. nominal scale d. ordinal scale ANS: A 14. Data obtained from a nominal scale a. must be alphabetic b. can be either numeric or nonnumeric c. must be numeric d. must rank order the data ANS: B 15. The scale of measurement that has an inherent zero value defined is the a. ratio scale b. nominal scale c. ordinal scale d. interval scale ANS: A 16. Arithmetic operations are appropriate for a. only the ratio scale b. only the interval scale c. the nominal scale d. None of these alternatives is correct. ANS: D 17. Quantitative data refers to data obtained with a(n) a. ordinal scale b. nominal scale c. either interval or ratio scale d. only interval scale ANS: C 18. Data a. are always be numeric b. are always nonnumeric c. are the raw material of statistics d. None of these alternatives is correct. ANS: C 19. The entities on which data are collected are a. elements b. populations c. samples d. None of these alternatives is correct. ANS: A 20. The set of measurements collected for a particular element is (are) called a. variables b. observations c. samples d. None of these alternatives is correct. ANS: B 21. A characteristic of interest for the elements is called a(n) a. sample b. data set c. variable d. None of these alternatives is correct. ANS: C 22. All the data collected in a particular study are referred to as the a. inference b. variable c. data set d. None of these alternatives is correct. ANS: C 23. Another name for "observations" is a. views b. variables c. cases d. None of these alternatives is correct. ANS: C 24. Quantitative data a. are always nonnumeric b. may be either numeric or nonnumeric c. are always numeric d. None of these alternatives is correct. ANS: C 25. In a questionnaire, respondents are asked to mark their gender as male or female. Gender is an example of a a. categorical variable b. quantitative variable c. categorical or quantitative variable, depending on how the respondents answered the question d. None of these alternatives is correct. ANS: A 26. The number of cases will always be the same as the number of a. variables b. elements c. data sets d. data ANS: B 27. Categorical data a. must be numeric b. must be nonnumeric c. cannot be numeric d. may be either numeric or nonnumeric ANS: D 28. Categorical data a. indicate either how much or how many b. cannot be numeric c. are labels used to identify attributes of elements d. must be nonnumeric ANS: C 29. Ordinary arithmetic operations are meaningful a. only with categorical data b. only with quantitative data c. either with quantitative or categorical data d. None of these alternatives is correct. ANS: B 30. Social security numbers consist of numeric values. Therefore, social security is an example of a. a quantitative variable b. either a quantitative or a categorical variable c. an exchange variable d. a categorical variable ANS: D 31. Temperature is an example of a. a categorical variable b. a quantitative variable c. either a quantitative or categorical variable d. neither a quantitative nor categorical variable ANS: B 32. For ease of data entry into a university database, 1 denotes that the student is an undergraduate and 2 indicates that the student is a graduate student. In this case data are a. categorical b. quantitative c. either categorical or quantitative d. neither categorical nor quantitative ANS: A 33. Arithmetic operations are inappropriate for a. categorical data b. quantitative data c. both categorical and quantitative data d. large data sets ANS: A 34. Income is an example of a. categorical data b. either categorical or quantitative data c. dollar data d. quantitative data ANS: D 35. Data collected at the same, or approximately the same, point in time are a. time series data b. approximate time series data c. crossectional data d. approximate data ANS: C 36. Data collected over several time periods are a. time series data b. time controlled data c. crossectional data d. time crossectional data ANS: A 37. Statistical studies in which researchers do not control variables of interest are a. experimental studies b. uncontrolled experimental studies c. not of any value d. observational studies ANS: D 38. Statistical studies in which researchers control variables of interest are a. experimental studies b. control observational studies c. non-experimental studies d. observational studies ANS: A 39. The summaries of data, which may be tabular, graphical, or numerical, are referred to as a. inferential statistics b. descriptive statistics c. statistical inference d. report generation ANS: B 40. Statistical inference a. refers to the process of drawing inferences about the sample based on the characteristics of the population b. is the same as descriptive statistics c. is the process of drawing inferences about the population based on the information taken from the sample d. is the same as a census ANS: C 41. The collection of all elements of interest in a particular study is a. the population b. the sampling c. statistical inference d. descriptive statistics ANS: A 42. A portion of the population selected to represent the population is called a. statistical inference b. descriptive statistics c. a census d. a sample ANS: D TOP: Statistical Inference 43. In a sample of 800 students in a university, 240, or 30%, are Business majors. The 30% is an example of a. a sample b. a population c. statistical inference d. descriptive statistics ANS: D 44. In a sample of 400 students in a university, 80, or 20%, are Business majors. Based on the above information, the school's paper reported that "20% of all the students at the university are Business majors." This report is an example of a. a sample b. a population c. statistical inference d. descriptive statistics ANS: C 45. Five hundred residents of a city are polled to obtain information on voting intentions in an upcoming city election. The five hundred residents in this study is an example of a(n) a. census b. sample c. observation d. population ANS: B 46. A statistics professor asked students in a class their ages. On the basis of this information, the professor states that the average age of all the students in the university is 24 years. This is an example of a. a census b. descriptive statistics c. an experiment d. statistical inference ANS: D TOP: Statistical Inference 47. The owner of a factory regularly requests a graphical summary of all employees' salaries. The graphical summary of salaries is an example of a. a sample b. descriptive statistics c. statistical inference d. an experiment ANS: B 48. The Department of Transportation of a city has noted that on the average there are 17 accidents per day. The average number of accidents is an example of a. descriptive statistics b. statistical inference c. a sample d. a population ANS: A TOP: Statistical Inference 49. The process of analyzing sample data in order to draw conclusions about the characteristics of a population is called a. descriptive statistics b. statistical inference c. data analysis d. data summarization ANS: B 50. In a post office, the mailboxes are numbered from 1 to 4,500. These numbers represent a. categorical data b. quantitative data c. either categorical or quantitative data d. since the numbers are sequential, the data is quantitative ANS: A 51. The average age in a sample of 190 students at City College is 22. As a result of this sample, it can be concluded that the average age of all the students at City College a. must be more than 22, since the population is always larger than the sample b. must be less than 22, since the sample is only a part of the population c. could not be 22 d. could be larger, smaller, or equal to 22 ANS: D 52. Since a sample is a subset of the population, the sample mean a. is always smaller than the mean of the population b. is always larger than the mean of the population c. must be equal to the mean of the population d. can be larger, smaller, or equal to the mean of the population ANS: D 53. The scale of measurement that is simply a label for the purpose of identifying the attribute of an element is the a. ratio scale b. nominal scale c. ordinal scale d. interval scale ANS: B 54. In a data set, the number of elements will always be the same as the number of a. independent variables b. observations c. data points d. dependent variables ANS: B 55. Which of the following is not a scale of measurement? a. nominal b. ordinal c. interval d. primal ANS: D 56. Which of the following is a scale of measurement? a. ratio b. primal c. divisional d. remedial ANS: A 57. Which scale of measurement can be either numeric or nonnumeric? a. nominal b. ratio c. interval d. None of these alternatives is correct. ANS: A 58. Which of the following variables use the ratio scale of measurement? a. social security number b. temperature c. gender d. income ANS: D 59. The weight of a candy bar in ounces is an example of a. categorical data b. either categorical or quantitative data c. weight data d. quantitative data ANS: D 60. The height of a building, measured in feet, is an example of a. categorical data b. either categorical or quantitative data c. feet data d. quantitative data ANS: D 61. An interviewer has made an error in recording the data. This type of error is known as a. an experimental error b. a data acquisition error c. a non-experimental error d. a conglomerate error ANS: B 62. Census refers to a. an experimental study to collect data on the entire population b. an experimental study to collect data on a sample c. a survey to collect data on a sample d. a survey to collect data on the entire population ANS: D 63. In experimental studies, the variable of interest a. is not controlled b. is controlled c. must be numerical d. cannot be numerical ANS: B 64. In observational studies, the variable of interest a. is not controlled b. is controlled c. must be numerical d. cannot be numerical ANS: A 65. How many scales of measurement exist? a. 1 b. 2 c. 3 d. 4 ANS: D 66. Which of the following can be classified as quantitative data? a. interval and ordinal b. ratio and ordinal c. nominal and ordinal d. interval and ratio ANS: D 67. The sample size a. can be larger than the population size b. is always smaller than the population size c. can be larger or smaller than the population size d. is always equal to the size of the population ANS: B 68. A population is a. the same as a sample b. the selection of a random sample c. the collection of all items of interest in a particular study d. always the same size as the sample ANS: C 69. In a random sample of 200 items, 5 items were defective. An estimate of the percentage of defective items in the population is a. 5.0% b. 2.5% c. 200 d. 10.0% ANS: B 70. On a street, the houses are numbered from 300 to 450. The house numbers are examples of a. categorical data b. quantitative data c. both quantitative and categorical data d. neither quantitative nor categorical data ANS: A 71. A survey to collect data on the entire population is a. a census b. a sample c. a population d. an inference ANS: A 72. In Excel, a worksheet that displays the data for the problem and shows the results of the analysis is a. a formula worksheet b. a value worksheet c. an absolute worksheet d. a descriptive worksheet ANS: B 73. In Excel, a worksheet that displays the formulas used to create the results is a a. results worksheet b. formula worksheet c. value worksheet d. sample worksheet ANS: B NARRBEGIN: Exhibit 1-1 Exhibit 1-1 In a recent study based upon an inspection of 200 homes in Daisy City, 80 were found to violate one or more city codes. NARREND 74. Refer to Exhibit 1-1. The city manager released a statement that 40% of Daisy City's 2,000 homes are in violation of city codes. The manager's statement is an example of a. a census b. an experiment c. descriptive statistics d. statistical inference ANS: D 75. Refer to Exhibit 1-1. The Daisy City study described above is an example of the use of a a. census b. sample c. probability d. population ANS: B 76. Refer to Exhibit 1-1. The manager's statement that 40% of Daisy City's 2,000 homes are in violation of city codes is a. an exactly correct statement b. only an approximation, since it is based upon sample information c. obviously wrong, since it is based upon a study of only 200 homes d. None of these alternatives is correct. ANS: B NARRBEGIN: Exhibit 1-2 Exhibit 1-2 In a sample of 1,600 registered voters, 912, or 57%, approve of the way the President is doing his job. NARREND 77. Refer to Exhibit 1-2. The 57% approval is an example of a. a sample b. descriptive statistics c. statistical inference d. a population ANS: B 78. Refer to Exhibit 1-2. A political pollster states: "Fifty-seven percent of all voters approve of the President." This statement is an example of a. a sample b. descriptive statistics c. statistical inference d. a population ANS: C NARRBEGIN: Exhibit 1-3 Exhibit 1-3 Part of the data bank of a corporation is shown below. Employee Number Gender Department Years of Experience Employee Rank (1 - 10) Yearly Salary 23450 Male Accounting 15 10 $ 52,443.00 34568 Female IT 24 7 $111,239.00 23123 Female Personnel 20 4 $ 84,473.00 23007 Male Finance 9 1 $ 47,519.00 NARREND 79. Refer to Exhibit 1-3. Employee Number is an example of ________ data. a. nominal b. ordinal c. interval d. ratio ANS: A 80. Refer to Exhibit 1-3. Gender is an example of ________ data. a. nominal b. ordinal c. interval d. ratio ANS: A 81. Refer to Exhibit 1-3. Years of Experience is an example of ________ data. a. nominal b. ordinal c. interval d. ratio ANS: D 82. Refer to Exhibit 1-3. Employee Rank is an example of ________ data. a. nominal b. ordinal c. interval d. ratio ANS: B 83. Refer to Exhibit 1-3. Yearly Salary is an example of ________ data. a. nominal b. ordinal c. interval d. ratio ANS: D NARRBEGIN: Exhibit 1-4 Exhibit 1-4 In many universities, students evaluate their professors by means of answering a questionnaire. Assume a questionnaire is distributed to a class of 45 students. Students are asked to answer the following: 1. Sex 2. Race (Black, White, Other) 3. Age 4. Number of hours completed 5. Grade point average 6. My instructor is a very effective teacher 1 2 3 4 5 strongly agree moderately agree neutral moderately disagree strongly disagree NARREND 84. Refer to Exhibit 1-4. How many elements are in the above data set? a. 5 b. 6 c. 3 d. 45 ANS: D 85. Refer to Exhibit 1-4. How many variables are in this data set? a. 3 b. 4 c. 5 d. 6 ANS: D 86. Refer to Exhibit 4-1. How many observations are in this data set? a. 5 b. 6 c. 3 d. 45 ANS: D PROBLEM 1. After graduation ceremonies at a university, six graduates were asked whether they were in favor of (identified by 1) or against (identified by 0) abortion. Some information about these graduates is shown below. Graduate Sex Age Abortion Issue Class Rank Marissa F 24 1 1 Jason M 22 1 2 Wendy F 41 0 3 Edward M 38 0 20 Jennifer F 25 1 4 Tim M 19 0 8 a. How many elements are in the data set? b. How many variables are in the data set? c. How many observations are in the data set? d. Which of the above variables (Sex, Age, Abortion Issue, Class rank) are categorical and which are quantitative variables? e. Are arithmetic operations appropriate for the variable "abortion issue"? ANS: a. 6 b. 4 c. 6 d. Sex: categorical Age: quantitative Abortion Issue: categorical Class Rank: categorical e. No 2. A recent issue of Fortune Magazine reported that the following companies had the lowest sales per employee among the Fortune 500 companies. Sales per Employee (In $1,000s) Sales Rank Company Seagate Technology 42.20 285 SSMC 42.19 414 Russel 41.99 480 Maxxam 40.88 485 Dibrell Brothers 22.56 470 a. How many elements are in the above data set? b. How many variables are in the above data set? c. How many observations are in the above data set? d. Name the variables and indicate whether they are categorical or quantitative. ANS: a. 5 b. 2 c. 5 d. Sales per employee: quantitative; Sales rank: categorical 3. The following shows the temperatures (high, low) and weather conditions in a given Sunday for some selected world cities. For the weather conditions, the following notations are used: c = clear; cl = cloudy; sh = showers; pc = partly cloudy. City Hi Lo Condition Acapulco 99 77 pc Bangkok 92 78 pc Mexico City 77 57 sh Montreal 72 56 pc Paris 77 58 c Rome 88 68 cl Toronto 78 61 c a. How many elements are in this data set? b. How many variables are in this data set? c. How many observations are in this data set? d. Name the variables and indicate whether they are categorical or quantitative. e. For which variables are arithmetic operations appropriate and for which are they not appropriate? ANS: a. 7 b. 3 c. 7 d. Hi: quantitative, Lo: quantitative, Condition: categorical e. Hi: appropriate, Lo: appropriate, Condition: not appropriate 4. The following data shows the yearly income distribution of a sample of 200 employees at MNM, Inc. Yearly Income (In $1,000s) Number of Employees 20 - 24 2 25 - 29 48 30 - 34 60 35 - 39 80 40 - 44 10 a. What percentage of employees has yearly incomes of $35,000 or more? b. Is the figure (percentage) that you computed in Part a an example of statistical inference? If no, what kind of statistics does it represent? c. Based on this sample, the president of the company said that "45% of all our employees' yearly incomes are $35,000 or more." The president's statement represents what kind of statistics? d. With the statement made in Part c, can we be assured that more than 45% of all employees' yearly incomes are at least $35,000? Explain. e. What percentage of employees of the sample has yearly incomes of $29,000 or less? f. How many variables are presented in the above data set? g. The above data set represents the results of how many observations? ANS: a. 45% b. No, it is descriptive statistics. c. statistical inference d. No, this is simply an inference and approximation based on the sample information. e. 25% f. 2 g. 200 5. A recent issue of a national magazine reported that in a national public opinion survey conducted among 2,000 individuals, 56% were in favor of gun control, 40% opposed gun control, and 4% had no opinion on the subject. a. What is the sample in this survey? b. Based on the sample, what percentage of the population would you think is in favor of gun control? c. Based on the sample, what percentage of the population would you think have no opinion on the subject? ANS: a. The 2000 individuals who were approached b. 56% c. 4% 6. The following table shows the starting salaries of a sample of recent business graduates. Income (In $1,000s) Number of Graduates 15 - 19 40 20 - 24 60 25 - 29 80 30 - 34 18 35 - 39 2 a. What percentage of graduates in the sample had starting salaries of at least $30,000? b. Of the graduates in the sample, what percentage had starting salaries of less than $25,000? c. Based on this sample, what percentage of all business graduates do you estimate to have starting salaries of at least $20,000? ANS: a. 10% b. 50% c. 80% 7. Michael, Inc., a manufacturer of electric guitars, is a small firm with 50 employees. The table below shows the hourly wage distribution of the employees. Hourly Wages (In Dollars) Number of Employees 10 - 13 8 14 - 17 12 18 - 21 20 22 - 25 10 a. How many employees receive hourly wages of at least $18? b. What percentage of the employees has hourly wages of at least $18? c. What percentage of the employees has hourly wages of less than $14? ANS: a. 30 b. 60% c. 16% 8. The following information regarding the top eight Fortune 500 companies was presented in an issue of Fortune Magazine. Sales $ Millions Sales Rank Profits $ Millions Profits Rank Company General Motors 161,315 1 2,956 30 Ford Motor 144,416 2 22,071 2 Wal-Mart Stores 139,208 3 4,430 14 Exxon 100,697 4 6,370 5 General Electric 100,469 5 9,269 3 Int'l Business Machines 81,667 6 6,328 6 Citigroup 76,431 7 5,807 8 Philip Morris 57,813 8 5,372 9 Boeing 56,154 9 1,120 82 AT&T 53,588 10 6,398 4 a. How many elements are in the above data set? b. How many variables are in this data set? c. How many observations are in this data set? d. Which variables are categorical and which are quantitative variables? e. What measurement scale is used for each variable? ANS: a. 10 b. 4 c. 10 d. Sales and Profits are quantitative Sales Rank, and Profits Rank are categorical e. Sales: ratio Sales Rank: ordinal Profits: ratio Profits Rank: ordinal 9. The following information regarding a sample of seven students is provided. Student Identification number Grade Point Average Classification Gender Rank in Class Adam 1234 2.89 Senior Male 15 Brandon 8978 2.01 Junior Male 25 Jason 6578 3.97 Freshman Male 3 Marissa 2345 3.98 Sophomore Female 2 Michelle 8901 2.67 Senior Female 18 Wendy 7789 4.00 Senior Female 1 Webster 6780 3.77 Freshman Male 4 a. How many elements are in the above data set? b. How many variables are in this data set? c. How many observations are in this data set? d. Which variables are categorical and which are quantitative variables? e. What measurement scale is used for each variable? ANS: a. 7 b. 5 c. 7 d. Grade point average is quantitative. All others are categorical. e. Identification Number: nominal Grade Point Average: ratio Classification: ordinal Gender: nominal Rank in Class: ordinal 10. The following information regarding the ten richest Americans was reported in a recent issue of Forbes. Name Ranking Worth ($Billions) Age Marital Status Source Gates, William 1 59.0 51 married Microsoft Buffett, Warren 2 52.0 77 married Berkshire Hathaway Adelson, Sheldon 3 28.0 74 married casinos, hotels Ellison, L. J. 4 26.0 63 married Oracle Brin, Sergey 5 18.5 34 married Google Page, Larry 5 18.5 34 single Google Kerkorian, Kirk 7 18.0 90 divorced investments, casinos Dell, Michael 8 17.2 42 married Dell Koch, Charles 9 17.0 71 married oil, commodities Koch, David 9 17.0 67 married oil, commodities a. How many elements are in the above data set? b. How many variables are in this data set? c. How many observations are in this data set? d. Which variables are categorical and which are quantitative? e. What measurement scale is used for each variable? ANS: a. 10 b. 5 c. 10 d. Worth and Age are quantitative Ranking, Marital Status, and Source are categorical e. Ranking: ordinal Worth: ratio Age: ratio Marital Status: nominal Source: nominal 11. The following national weather report gives the temperatures and weather conditions on the previous day in cities across the nation. City Hi Lo Condition Albany, N.Y. 88 60 cloudy Chicago 92 64 clear Dallas-Ft.Worth 89 72 cloudy Denver 75 54 clear Hartford 88 61 cloudy Honolulu 86 70 clear Kansas City 93 74 clear Los Angeles 80 62 cloudy Nashville 94 72 rain New York City 90 69 rain Philadelphia 90 67 rain a. How many elements are in this data set? b. How many variables are in this data set? c. How many observations are there in the above data set? d. Which variables are categorical and which are quantitative? e. What measurement scale is used for temperature and weather conditions? ANS: a. 11 b. 3 c. 11 d. Temperature is quantitative Weather Condition is categorical e. Temperature (Hi and Lo): interval Weather Condition: nominal 12. The following table shows the age distribution of a sample of 180 students at a local college. AGE DISTRIBUTION OF 180 STUDENTS AT A LOCAL COLLEGE Age of Students Number of Students 15 - 19 36 20 - 24 44 25 - 29 60 30 - 34 38 35 - 39 2 Total 180 a. Of the students in the sample, what percentage is younger than 20 years of age? b. What percentage is at least 30 years of age? c. Based on this sample, what percentage of the students at the college do you estimate to be younger than 25 years of age? ANS: a. 20% b. 22.22% c. 44.44% 13. The highway patrol is interested in determining the average speed of automobiles traveling on I-75 between Chattanooga and Atlanta. To accomplish this task, the speed of every tenth car passing a particular point on I-75 is recorded. a. What is the population for this study? b. What constitutes the sample? c. Is speed a categorical or a quantitative variable? d. What type of measurement scale is used? ANS: a. All the automobiles on I-75 b. All the tenth cars c. quantitative d. ratio