Groebner, Business Statistics: A Decision-Making Approach, 11e, Global Edition
Chapter 1 Test
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Statistics is a discipline that involves tools and techniques used to describe data and draw conclusions.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
2) In this course, the term business statistics refers to the set of tools and techniques that are used to convert
information into meaningful data.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
3) Descriptive statistics allow a decision maker to reach a conclusion about a population based on a subset from the
population.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
4) The editor of a local newspaper is interested in determining the percentage of subscribers who read the paper's
editorials. The statistical technique that he would use is called estimation.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
5) Another term for the arithmetic average is the mean.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
6) A sales manager has five salespeople. The following are the number of units sold by the five salespeople during
the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number of units sold was 6 units.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
7) The use of charts and graphs is an example of:
A) inferential statistics. B) hypothesis testing.
C) descriptive statistics. D) estimation.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
8) When an administrator at a local hospital prepares a series of charts and graphs pertaining to the patients that
have stayed at the hospital during the past month, she is using which general category of statistical analysis?
A) Descriptive statistics B) Quantitative statistics
C) Inferential statistics D) Random sampling
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
1
, 9) Which of the following is an example of graphs used to describe data?
A) Histograms B) Bar charts
C) Both A and B are correct. D) None of the above.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
10) When a marketing manager surveys a few of the customers for the purpose of drawing a conclusion about the
entire list of customers, she is applying:
A) inferential statistics. B) descriptive statistics.
C) numerical measures. D) quantitative models.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
11) When the park ranger at Yellowstone National Park reports the average length of time that visitors spend in the
park, he is using:
A) numerical measures. B) histograms or bar charts.
C) statistical charts. D) graphical tools.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
12) A consumer products company is considering introducing a new product nationally. To help make the decision, it
first conducts a test market by selling the product for a few months in one city. This is an example of:
A) charts and graphs. B) hypothesis testing.
C) descriptive statistics. D) estimation.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
13) A political poll that is used to indicate the percentage of voters who will vote for a particular candidate makes use
of which of the following?
A) Hypothesis testing B) Numerical analysis C) Estimation D) Both B and C
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
14) The company that makes a new weight loss pill claims that people who use this pill according to instructions will
lose an average of 20 pounds during a four-month period. They say the claim is based on a study of 300 people.
Which of the following statistical methods was most likely used to arrive at the company's conclusion?
A) Hypothesis testing B) Estimation C) Bar charts D) Histograms
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
15) When the California Highway Patrol states that a study of drivers on a rural highway shows that the average
speed is between 62.5 mph and 64.5 mph, they are most likely basing this statement on:
A) descriptive statistics. B) graphical analysis.
C) hypothesis testing. D) estimation.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
16) The summaries of data, which may be in forms of tabular, graphical, or numerical, are referred to as:
A) inferential statistics. B) statistical inference.
C) report generation. D) descriptive statistics.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
2
, 17) Based on a survey of 400 students in a university in which 20 percent indicated that they were business majors.
The university student newspaper reported that "20 percent of all the students at the university are business
majors." This report is an example of:
A) statistical inference. B) a sample.
C) descriptive statistics. D) a population.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
18) What is meant by the term statistical inference?
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
19) Discuss the differences and similarities between statistical estimation and statistical hypothesis testing.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
20) Discuss the two major types of descriptive statistics.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
21) What are the major categories of statistical tools that will be covered in this course?
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
22) An accountant has recently prepared a report for a client that contains a variety of graphs and charts. In doing so,
she has used descriptive statistical methods.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
23) Descriptive statistical tools include graphs, charts, and numerical measures.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
24) A histogram is an example of a numerical measure.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
25) Companies frequently use charts and graphs in their regular communications with stockholders and investors; this
shows the use of descriptive statistics.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
26) A manufacturing manager has developed a table that shows the average production volume each day for the past
three weeks. The average production level is an example of a numerical measure.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
3
, 27) Which of the following is an example of graphs used to describe data?
A) Histograms B) Bar charts
C) Both A and B are correct. D) None of the above.
Objective: (1.1) Apply knowledge of statistical charts.
28) The Biltmore Hotel manager is getting ready to make a presentation that she hopes will justify adding additional
staff. As part of the presentation, she has constructed charts and graphs. The general type of statistical analysis she
is using is:
A) descriptive statistics. B) estimation.
C) hypothesis testing. D) inferential statistics.
Objective: (1.1) Apply knowledge of statistical charts.
29) An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in an effort to
estimate the percentage of all accounts that have incorrect journal entries is using descriptive statistical analysis to
reach the conclusion.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
30) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about a large data set
based on a subset of the data.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
31) Statistical inference would be used as the primary statistical tool by a quality control manager who wishes to
estimate the average weight of her company's products.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
32) A light bulb manufacturer wants to advertise the average life of its light bulbs so it tests a subset of light bulbs.
This is an example of inferential statistics.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
33) A car manufacturer stated in its advertising that the gas mileage for its hybrids will be greater than 40 mpg on
average. A consumer agency tested a sampling of the hybrids under a variety of conditions. Based on these tests,
the agency concluded that the manufacturer was justified in making this claim. The process described is an
example of:
A) descriptive statistics. B) hypothesis testing.
C) statistical inference. D) Both B and C are correct.
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
34) Estimation and hypothesis testing are categories of:
A) statistical charts. B) numerical measurement.
C) descriptive statistics. D) inferential statistics.
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
4
Chapter 1 Test
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Statistics is a discipline that involves tools and techniques used to describe data and draw conclusions.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
2) In this course, the term business statistics refers to the set of tools and techniques that are used to convert
information into meaningful data.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
3) Descriptive statistics allow a decision maker to reach a conclusion about a population based on a subset from the
population.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
4) The editor of a local newspaper is interested in determining the percentage of subscribers who read the paper's
editorials. The statistical technique that he would use is called estimation.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
5) Another term for the arithmetic average is the mean.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
6) A sales manager has five salespeople. The following are the number of units sold by the five salespeople during
the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number of units sold was 6 units.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
7) The use of charts and graphs is an example of:
A) inferential statistics. B) hypothesis testing.
C) descriptive statistics. D) estimation.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
8) When an administrator at a local hospital prepares a series of charts and graphs pertaining to the patients that
have stayed at the hospital during the past month, she is using which general category of statistical analysis?
A) Descriptive statistics B) Quantitative statistics
C) Inferential statistics D) Random sampling
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
1
, 9) Which of the following is an example of graphs used to describe data?
A) Histograms B) Bar charts
C) Both A and B are correct. D) None of the above.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
10) When a marketing manager surveys a few of the customers for the purpose of drawing a conclusion about the
entire list of customers, she is applying:
A) inferential statistics. B) descriptive statistics.
C) numerical measures. D) quantitative models.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
11) When the park ranger at Yellowstone National Park reports the average length of time that visitors spend in the
park, he is using:
A) numerical measures. B) histograms or bar charts.
C) statistical charts. D) graphical tools.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
12) A consumer products company is considering introducing a new product nationally. To help make the decision, it
first conducts a test market by selling the product for a few months in one city. This is an example of:
A) charts and graphs. B) hypothesis testing.
C) descriptive statistics. D) estimation.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
13) A political poll that is used to indicate the percentage of voters who will vote for a particular candidate makes use
of which of the following?
A) Hypothesis testing B) Numerical analysis C) Estimation D) Both B and C
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
14) The company that makes a new weight loss pill claims that people who use this pill according to instructions will
lose an average of 20 pounds during a four-month period. They say the claim is based on a study of 300 people.
Which of the following statistical methods was most likely used to arrive at the company's conclusion?
A) Hypothesis testing B) Estimation C) Bar charts D) Histograms
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
15) When the California Highway Patrol states that a study of drivers on a rural highway shows that the average
speed is between 62.5 mph and 64.5 mph, they are most likely basing this statement on:
A) descriptive statistics. B) graphical analysis.
C) hypothesis testing. D) estimation.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
16) The summaries of data, which may be in forms of tabular, graphical, or numerical, are referred to as:
A) inferential statistics. B) statistical inference.
C) report generation. D) descriptive statistics.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
2
, 17) Based on a survey of 400 students in a university in which 20 percent indicated that they were business majors.
The university student newspaper reported that "20 percent of all the students at the university are business
majors." This report is an example of:
A) statistical inference. B) a sample.
C) descriptive statistics. D) a population.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
18) What is meant by the term statistical inference?
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
19) Discuss the differences and similarities between statistical estimation and statistical hypothesis testing.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
20) Discuss the two major types of descriptive statistics.
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
21) What are the major categories of statistical tools that will be covered in this course?
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
22) An accountant has recently prepared a report for a client that contains a variety of graphs and charts. In doing so,
she has used descriptive statistical methods.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
23) Descriptive statistical tools include graphs, charts, and numerical measures.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
24) A histogram is an example of a numerical measure.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
25) Companies frequently use charts and graphs in their regular communications with stockholders and investors; this
shows the use of descriptive statistics.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
26) A manufacturing manager has developed a table that shows the average production volume each day for the past
three weeks. The average production level is an example of a numerical measure.
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
3
, 27) Which of the following is an example of graphs used to describe data?
A) Histograms B) Bar charts
C) Both A and B are correct. D) None of the above.
Objective: (1.1) Apply knowledge of statistical charts.
28) The Biltmore Hotel manager is getting ready to make a presentation that she hopes will justify adding additional
staff. As part of the presentation, she has constructed charts and graphs. The general type of statistical analysis she
is using is:
A) descriptive statistics. B) estimation.
C) hypothesis testing. D) inferential statistics.
Objective: (1.1) Apply knowledge of statistical charts.
29) An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in an effort to
estimate the percentage of all accounts that have incorrect journal entries is using descriptive statistical analysis to
reach the conclusion.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
30) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about a large data set
based on a subset of the data.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
31) Statistical inference would be used as the primary statistical tool by a quality control manager who wishes to
estimate the average weight of her company's products.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
32) A light bulb manufacturer wants to advertise the average life of its light bulbs so it tests a subset of light bulbs.
This is an example of inferential statistics.
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
33) A car manufacturer stated in its advertising that the gas mileage for its hybrids will be greater than 40 mpg on
average. A consumer agency tested a sampling of the hybrids under a variety of conditions. Based on these tests,
the agency concluded that the manufacturer was justified in making this claim. The process described is an
example of:
A) descriptive statistics. B) hypothesis testing.
C) statistical inference. D) Both B and C are correct.
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
34) Estimation and hypothesis testing are categories of:
A) statistical charts. B) numerical measurement.
C) descriptive statistics. D) inferential statistics.
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
4
