TEST BANK
BASIC STATISTICS IN BUSINESS AND ECONOMICS
2024 EVERGREEN RELEASE
CHAPTER NO. 01: WHAT IS STATISTICS?
TRUE/FALSE
1) A population is a collection of all individuals, objects, or measurements of interest.
⊚ true
⊚ false
ANS: true
This is the definition of a population.
2) Statistics are used as a basis for making decisions.
⊚ true
⊚ false
ANS: true
This is the ultimate purpose of statistics. After we organize, summarize, and analyze data, we
make decisions based on our summaries and analysis.
3) A listing of 100 family annual incomes is an example of statistics.
⊚ true
⊚ false
ANS: false
A listing of incomes is raw data. Statistics is used to organize, summarize, and present the data.
4) The average number of passengers on commercial flights between Chicago and
New York City is an example of a statistic.
⊚ true
⊚ false
ANS: true
Statistics is used to organize, summarize, and analyze raw data. Raw data would be a list of all
commercial flights between the two cities and the number of passengers on each, while statistics
would take that raw data and create summary measures, such as determining the mean or average
for these flights.
,5) Statistics is used to report the summary results of market surveys.
⊚ true
⊚ false
ANS: true
Statistics is used to summarize raw data into a more useful form. While we could look at all the
individual survey results, summarizing the results is helpful if we wish to make decisions.
6) A sample is a portion or part of the population of interest.
⊚ true
⊚ false
ANS: true
This is the definition of a sample.
7) To infer something about a population, we usually take a sample from the
population.
⊚ true
⊚ false
ANS: true
This is the purpose of inferential statistics, where we estimate or infer something about a
population based on a sample taken from that population.
8) Descriptive statistics are used to find out something about a population based on a
sample.
⊚ true
⊚ false
ANS: false
Inferential statistics uses sample information to find out something about a population.
9) There are four levels of measurement: qualitative, quantitative, discrete, and
continuous.
⊚ true
⊚ false
ANS: false
The four levels of measurement are nominal, ordinal, interval, and ratio.
,10) The ordinal level of measurement is considered the "lowest" level of measurement.
⊚ true
⊚ false
ANS: false
The nominal scale is the "lowest" level of measurement.
11) A store asks shoppers for their zip codes to identify market areas. Zip codes are an
example of ratio data.
⊚ true
⊚ false
ANS: false
While zip codes use numbers, they are only labels. Therefore, they represent a nominal
measurement scale.
12) An ordinal level of measurement implies some sort of ranking.
⊚ true
⊚ false
ANS: true
If qualitative data can be ranked on a relative basis, it is ordinal rather than nominal. An example
of the ordinal level would be a survey in which service is classified as poor, average, or
exceptional.
13) Data measured on a nominal scale can only be classified into categories.
⊚ true
⊚ false
ANS: true
Nominal level data can only be put into categories. An example would be car color: you can
create a list of colors, but the order in which the color is presented is not relevant. In contrast,
qualitative data that can be put into ordered categories based on some sort of ranking is at the
ordinal level. An example would be a survey in which service is classified as poor, average, or
exceptional.
, 14) The terms descriptive statistics and inferential statistics can be used
interchangeably.
⊚ true
⊚ false
ANS: false
Descriptive statistics are used to organize, summarize, and present data. Inferential statistics use
sample information to make inferences about a population.
15) A marketing research agency was hired to test a new smartphone. Consumers rated
it outstanding, very good, fair, or poor. The level of measurement for this experiment
is ordinal.
⊚ true
⊚ false
ANS: true
Qualitative data that can be put into ordered categories based on some sort of ranking is ordinal
level. In this case, outstanding is superior to very good, very good is superior to fair, and fair is
superior to poor.
16) The Union of Electrical Workers of America with 9,128 members polled 362
members about a new wage package that will be submitted to management. The
population is the 362 members.
⊚ true
⊚ false
ANS: false
The 362 members are a sample or portion of the population of 9,128 union members.
17) The CIA World Factbook cited these numbers for the United States:
The birthrate is 13.66 births per 1,000 of the population.
The average life expectancy for females is 81.17 years.
Approximately 316.7 million persons reside in the United States.
Each of these numbers is referred to as a statistic.
⊚ true
⊚ false
ANS: true
Statistics are numbers used to communicate a piece of information. Each of the statistics
provided in this list is a summary of the data for the population as a whole.
BASIC STATISTICS IN BUSINESS AND ECONOMICS
2024 EVERGREEN RELEASE
CHAPTER NO. 01: WHAT IS STATISTICS?
TRUE/FALSE
1) A population is a collection of all individuals, objects, or measurements of interest.
⊚ true
⊚ false
ANS: true
This is the definition of a population.
2) Statistics are used as a basis for making decisions.
⊚ true
⊚ false
ANS: true
This is the ultimate purpose of statistics. After we organize, summarize, and analyze data, we
make decisions based on our summaries and analysis.
3) A listing of 100 family annual incomes is an example of statistics.
⊚ true
⊚ false
ANS: false
A listing of incomes is raw data. Statistics is used to organize, summarize, and present the data.
4) The average number of passengers on commercial flights between Chicago and
New York City is an example of a statistic.
⊚ true
⊚ false
ANS: true
Statistics is used to organize, summarize, and analyze raw data. Raw data would be a list of all
commercial flights between the two cities and the number of passengers on each, while statistics
would take that raw data and create summary measures, such as determining the mean or average
for these flights.
,5) Statistics is used to report the summary results of market surveys.
⊚ true
⊚ false
ANS: true
Statistics is used to summarize raw data into a more useful form. While we could look at all the
individual survey results, summarizing the results is helpful if we wish to make decisions.
6) A sample is a portion or part of the population of interest.
⊚ true
⊚ false
ANS: true
This is the definition of a sample.
7) To infer something about a population, we usually take a sample from the
population.
⊚ true
⊚ false
ANS: true
This is the purpose of inferential statistics, where we estimate or infer something about a
population based on a sample taken from that population.
8) Descriptive statistics are used to find out something about a population based on a
sample.
⊚ true
⊚ false
ANS: false
Inferential statistics uses sample information to find out something about a population.
9) There are four levels of measurement: qualitative, quantitative, discrete, and
continuous.
⊚ true
⊚ false
ANS: false
The four levels of measurement are nominal, ordinal, interval, and ratio.
,10) The ordinal level of measurement is considered the "lowest" level of measurement.
⊚ true
⊚ false
ANS: false
The nominal scale is the "lowest" level of measurement.
11) A store asks shoppers for their zip codes to identify market areas. Zip codes are an
example of ratio data.
⊚ true
⊚ false
ANS: false
While zip codes use numbers, they are only labels. Therefore, they represent a nominal
measurement scale.
12) An ordinal level of measurement implies some sort of ranking.
⊚ true
⊚ false
ANS: true
If qualitative data can be ranked on a relative basis, it is ordinal rather than nominal. An example
of the ordinal level would be a survey in which service is classified as poor, average, or
exceptional.
13) Data measured on a nominal scale can only be classified into categories.
⊚ true
⊚ false
ANS: true
Nominal level data can only be put into categories. An example would be car color: you can
create a list of colors, but the order in which the color is presented is not relevant. In contrast,
qualitative data that can be put into ordered categories based on some sort of ranking is at the
ordinal level. An example would be a survey in which service is classified as poor, average, or
exceptional.
, 14) The terms descriptive statistics and inferential statistics can be used
interchangeably.
⊚ true
⊚ false
ANS: false
Descriptive statistics are used to organize, summarize, and present data. Inferential statistics use
sample information to make inferences about a population.
15) A marketing research agency was hired to test a new smartphone. Consumers rated
it outstanding, very good, fair, or poor. The level of measurement for this experiment
is ordinal.
⊚ true
⊚ false
ANS: true
Qualitative data that can be put into ordered categories based on some sort of ranking is ordinal
level. In this case, outstanding is superior to very good, very good is superior to fair, and fair is
superior to poor.
16) The Union of Electrical Workers of America with 9,128 members polled 362
members about a new wage package that will be submitted to management. The
population is the 362 members.
⊚ true
⊚ false
ANS: false
The 362 members are a sample or portion of the population of 9,128 union members.
17) The CIA World Factbook cited these numbers for the United States:
The birthrate is 13.66 births per 1,000 of the population.
The average life expectancy for females is 81.17 years.
Approximately 316.7 million persons reside in the United States.
Each of these numbers is referred to as a statistic.
⊚ true
⊚ false
ANS: true
Statistics are numbers used to communicate a piece of information. Each of the statistics
provided in this list is a summary of the data for the population as a whole.
