Business Analytics Final Exam
Questions and Answers (Latest 2026).
Histogram - CORRECT ANSWERS a graph for a quantitative variable; we usually slice up
all the possible values into bins and then count the number of cases that fall in each bin
Relative frequency histograms - CORRECT ANSWERS percentages of each bin in the
histogram
Stem-and-leaf displays - CORRECT ANSWERS are like histograms, but they also give the
individual values
Quantitative Data Condition - CORRECT ANSWERS Before making a histogram or stem-
and-leaf display; the data must be values of a quantitative variable whose units are known
When describing a distribution, attention should be paid to - CORRECT ANSWERS its
shape, center, spread
Shape - CORRECT ANSWERS a distribution in terms of its modes, its symmetry, and
whether it has any gaps or outlying values
Modes - CORRECT ANSWERS Peaks or humps seen in a histogram
Unimodal - CORRECT ANSWERS A distribution whose histogram has one main peak
Bimodal - CORRECT ANSWERS Two main peaks
Multimodal - CORRECT ANSWERS three or more peaks
Uniform - CORRECT ANSWERS A distribution whose histogram doesn't appear to have
any mode and in which all the bars are approximately the same height
Symmetric - CORRECT ANSWERS the halves on either side of the center look, at least
approximately, like mirror images
Tails - CORRECT ANSWERS The thinner ends of a distribution
Skewed - CORRECT ANSWERS If one tail stretches out farther than the other: skewed to
side of where tail is
Judgment call - CORRECT ANSWERS Characterizing the shape of a distribution
The mean is a natural summary for - CORRECT ANSWERS unimodal, symmetric
distributions
Mean - CORRECT ANSWERS sum of y values (or x values)/ number of variables
,If a distribution is skewed, contains gaps, or contains outliers, then it is better to use - CORRECT
ANSWERS the median
The median is - CORRECT ANSWERS resistant
Range - CORRECT ANSWERS max-min; not resistant to unusual observations
quartiles - CORRECT ANSWERS values that frame the middle 50% of the data. One
quarter of the data lies below the lower quartile, Q1, and one quarter lies above the upper
quartile, Q3
The interquartile range (IQR) - CORRECT ANSWERS defined to be the difference
between the two quartile values; Q3-Q1
Standard deviation - CORRECT ANSWERS takes into account how far each value is from
the mean; appropriate for symmetric distributions; square root of the variance
Variance - CORRECT ANSWERS (s^2) average of the squared deviations; sum of (y value
minus the mean)^2 / n-1
If the shape is skewed - CORRECT ANSWERS the median and IQR should be reported
If the shape is unimodal and symmetric - CORRECT ANSWERS the mean and standard
deviation and possibly the median and IQR should be reported
Always pair the median with - CORRECT ANSWERS IQR
Always pair the mean with - CORRECT ANSWERS standard deviation
Z-score - CORRECT ANSWERS the standardized value tells how many standard
deviations each value is above or below the overall mean; x minus the mean/ standard deviation
The five-number summary of a distribution - CORRECT ANSWERS reports its median,
quartiles, and extremes (maximum and minimum)
Boxplot - CORRECT ANSWERS highlights several features of the distribution of the
variable, including the quartiles, the median, and any outlying values
Time series plot - CORRECT ANSWERS A display of values against time
Smooth trace - CORRECT ANSWERS To better understanding the trend of times series
data
Stationary - CORRECT ANSWERS when a time series is without a strong trend or change
in variability
Scatterplot - CORRECT ANSWERS plots one quantitative variable against another, is an
effective display to look for trends, patterns, and relationships between two quantitative variables
, Negative pattern - CORRECT ANSWERS A pattern that runs from the upper left to the
lower right
Positive pattern - CORRECT ANSWERS A pattern running from the lower left to the
upper right
Linear - CORRECT ANSWERS If there is a straight-line relationship, it will appear as a
cloud or swarm of points stretched out in a generally consistent, straight form
Form - CORRECT ANSWERS straight, curved, exotic
Strength - CORRECT ANSWERS how much scatter or cluster
Outlier - CORRECT ANSWERS unusual observation, standing away from the overall
pattern of the scatterplot
We place the explanatory or predictor variable on - CORRECT ANSWERS the x-axis
We place the response variable on - CORRECT ANSWERS the y-axis
The x- and y-variables are sometimes referred to as - CORRECT ANSWERS the
independent and dependent variables
x variable - CORRECT ANSWERS independant
y variable - CORRECT ANSWERS dependant
Correlation coefficient - CORRECT ANSWERS Since x's and y's are paired, multiply each
standardized value of x by the standardized value it is paired with and add up those cross products.
Divide by n -1.The ratio of the sum of the product zxzy for every point in the scatterplot to n - 1
Correlation - CORRECT ANSWERS measures the strength of the linear association
between two quantitative variables
Before using correlation, you must check - CORRECT ANSWERS Quantitative Variable
Condition
Linearity Condition
Outlier Condition
Quantitative Variables Condition - CORRECT ANSWERS Correlation applies only to
quantitative variables
Linearity Condition - CORRECT ANSWERS Correlation measures the strength only of the
linear association. If the underlying relationship is curved, summarizing its strength with a
correlation would be misleading.
Questions and Answers (Latest 2026).
Histogram - CORRECT ANSWERS a graph for a quantitative variable; we usually slice up
all the possible values into bins and then count the number of cases that fall in each bin
Relative frequency histograms - CORRECT ANSWERS percentages of each bin in the
histogram
Stem-and-leaf displays - CORRECT ANSWERS are like histograms, but they also give the
individual values
Quantitative Data Condition - CORRECT ANSWERS Before making a histogram or stem-
and-leaf display; the data must be values of a quantitative variable whose units are known
When describing a distribution, attention should be paid to - CORRECT ANSWERS its
shape, center, spread
Shape - CORRECT ANSWERS a distribution in terms of its modes, its symmetry, and
whether it has any gaps or outlying values
Modes - CORRECT ANSWERS Peaks or humps seen in a histogram
Unimodal - CORRECT ANSWERS A distribution whose histogram has one main peak
Bimodal - CORRECT ANSWERS Two main peaks
Multimodal - CORRECT ANSWERS three or more peaks
Uniform - CORRECT ANSWERS A distribution whose histogram doesn't appear to have
any mode and in which all the bars are approximately the same height
Symmetric - CORRECT ANSWERS the halves on either side of the center look, at least
approximately, like mirror images
Tails - CORRECT ANSWERS The thinner ends of a distribution
Skewed - CORRECT ANSWERS If one tail stretches out farther than the other: skewed to
side of where tail is
Judgment call - CORRECT ANSWERS Characterizing the shape of a distribution
The mean is a natural summary for - CORRECT ANSWERS unimodal, symmetric
distributions
Mean - CORRECT ANSWERS sum of y values (or x values)/ number of variables
,If a distribution is skewed, contains gaps, or contains outliers, then it is better to use - CORRECT
ANSWERS the median
The median is - CORRECT ANSWERS resistant
Range - CORRECT ANSWERS max-min; not resistant to unusual observations
quartiles - CORRECT ANSWERS values that frame the middle 50% of the data. One
quarter of the data lies below the lower quartile, Q1, and one quarter lies above the upper
quartile, Q3
The interquartile range (IQR) - CORRECT ANSWERS defined to be the difference
between the two quartile values; Q3-Q1
Standard deviation - CORRECT ANSWERS takes into account how far each value is from
the mean; appropriate for symmetric distributions; square root of the variance
Variance - CORRECT ANSWERS (s^2) average of the squared deviations; sum of (y value
minus the mean)^2 / n-1
If the shape is skewed - CORRECT ANSWERS the median and IQR should be reported
If the shape is unimodal and symmetric - CORRECT ANSWERS the mean and standard
deviation and possibly the median and IQR should be reported
Always pair the median with - CORRECT ANSWERS IQR
Always pair the mean with - CORRECT ANSWERS standard deviation
Z-score - CORRECT ANSWERS the standardized value tells how many standard
deviations each value is above or below the overall mean; x minus the mean/ standard deviation
The five-number summary of a distribution - CORRECT ANSWERS reports its median,
quartiles, and extremes (maximum and minimum)
Boxplot - CORRECT ANSWERS highlights several features of the distribution of the
variable, including the quartiles, the median, and any outlying values
Time series plot - CORRECT ANSWERS A display of values against time
Smooth trace - CORRECT ANSWERS To better understanding the trend of times series
data
Stationary - CORRECT ANSWERS when a time series is without a strong trend or change
in variability
Scatterplot - CORRECT ANSWERS plots one quantitative variable against another, is an
effective display to look for trends, patterns, and relationships between two quantitative variables
, Negative pattern - CORRECT ANSWERS A pattern that runs from the upper left to the
lower right
Positive pattern - CORRECT ANSWERS A pattern running from the lower left to the
upper right
Linear - CORRECT ANSWERS If there is a straight-line relationship, it will appear as a
cloud or swarm of points stretched out in a generally consistent, straight form
Form - CORRECT ANSWERS straight, curved, exotic
Strength - CORRECT ANSWERS how much scatter or cluster
Outlier - CORRECT ANSWERS unusual observation, standing away from the overall
pattern of the scatterplot
We place the explanatory or predictor variable on - CORRECT ANSWERS the x-axis
We place the response variable on - CORRECT ANSWERS the y-axis
The x- and y-variables are sometimes referred to as - CORRECT ANSWERS the
independent and dependent variables
x variable - CORRECT ANSWERS independant
y variable - CORRECT ANSWERS dependant
Correlation coefficient - CORRECT ANSWERS Since x's and y's are paired, multiply each
standardized value of x by the standardized value it is paired with and add up those cross products.
Divide by n -1.The ratio of the sum of the product zxzy for every point in the scatterplot to n - 1
Correlation - CORRECT ANSWERS measures the strength of the linear association
between two quantitative variables
Before using correlation, you must check - CORRECT ANSWERS Quantitative Variable
Condition
Linearity Condition
Outlier Condition
Quantitative Variables Condition - CORRECT ANSWERS Correlation applies only to
quantitative variables
Linearity Condition - CORRECT ANSWERS Correlation measures the strength only of the
linear association. If the underlying relationship is curved, summarizing its strength with a
correlation would be misleading.
