BANA 2372 HOLLANDER STATISTICS
BANA 2372 HOLLANDER
STATISTICS EXAM 1 PRACTICE
QUESTIONS
Darlene F
[COMPANY NAME] [Company address]
, BANA 2372 - Hollander – Midterm Exam 1 - Practice Questions
(Chapters 1-4)
analytics is the set of analytical techniques that yield a course of action. Prescriptive
analytics consists of analytical techniques that use models constructed from past data to predict the
future or to assess the impact of one variable on another. predictive
analytics encompasses the set of analytical techniques that describe what has happened in the past.
descriptive
can be used to determine the percentage of data values that must be within one, two, and
three standard deviations of the mean for data having a bell-shaped distribution.
The empirical rule
can be used to make statements about the proportion of data values that must be within a specified
number of standard deviations of the mean, regardless of the shape of the distribution. Chebyshev's theorem
is the process of using procedures from statistics and computer science to extract useful information
from extremely large databases. data mining
A can be used to graphically present quantitative data.
histogram and a stem-and-leaf display
A is a graphical representation in which the sample space is represented by a rectangle and
events are represented as circles. Venn diagram
A (discrete) sample space, denoted S, is a list of all possible outcomes Oi of an experiment. It is denoted as
S = {𝑶𝟏, 𝑶𝟐, ... , 𝑶𝒌}
A board of directors consists of eight men and four women. A four-member search committee is to be chosen
at random to recommend a new company president. What is the probability that all four members of the
search committee will be women? 1/495 or 0.002
A box plot is a graphical representation of data that is based on .
a five-number summary
A characteristic of interest for the elements is called a(n) . variable
A committee of four is to be selected from a group of 12 people. How many possible committees can be
selected? 495
A common graphical presentation of quantitative data is a..................histogram
A company created a side-by-side bar graph to display their projected financing for the next three years.
The display is shown below.
Which of the following statements is correct?
The company projects to increase income, while decreasing loans and expenses.
,A company plans to interview 10 recent graduates for possible employment. The company has three positions
open. How many groups of three can the company select? 120
A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical
records show that 8% of the employees suffered lost-time accidents last year. Management believes that a
special safety program will reduce such accidents to 7% during the current year. In addition, it estimates that
15% of employees who had lost-time accidents last year will experience a lost-time accident during the
current year.
a. What percentage of the employee will experience a lost-time accident in both years
01.2% Explanation (0.08*0.15) = 0.012 ~ 1.2%
b. What percentage of the employee will experience a lost-time accident over the two-year period (to
1 decimal)? 13.8% Explanation 0.08 + 0.07 - 0.012 = 0.138 or 13.8%
A conditional probability is computed as 𝑃 (𝐴|𝐵) =𝑃(𝐴 ∩ 𝐵)/𝑃(𝐵)
A consulting firm submitted a bid for a large research project. The firm's management initially
felt they had a 50–50 chance of getting the project. However, the agency to which the bid was
submitted subsequently requested additional information on the bid. Past experience indicates
that for 72% of the successful bids and 44% of the unsuccessful bids the agency requested
additional information.
a. What is the prior probability of the bid being successful (that is, prior to the
request for additional information) (to 1 decimal)? 0.5
b. What is the conditional probability of a request for additional information given
that the bid will ultimately be successful (to 2 decimals)? 0.72
P(request │ successful = 0.72
c. Compute the posterior probability that the bid will be successful given a request
for additional information (to 2 decimals). 0.62
𝟎.𝟑𝟔
𝟎.𝟕𝟐 𝒙 𝟎.𝟓𝟎 = = 𝟎. 𝟔𝟐
𝟎.𝟑𝟔
𝟎.𝟕𝟐 𝒙 𝟎.𝟓𝟎+𝟎.𝟒𝟒 𝒙 = 𝟎.𝟑𝟔+𝟎.𝟐𝟐 𝟎.𝟓𝟖
𝟎.𝟓𝟎
A counseling agency has the following data on the gender and marital status of 200 clients:
Male Female
Single 20 30
Married 100 50
a. If the client was a male, what is the probability that he is single? .17
b. Calculate the probability that a client is female. Calculate the probability that the client is female
given that she is married. Are the two events (being a female and being married) dependent or
independent? Explain.
, The events are dependent because the calculated probabilities differ.
A couple has three children. Assuming each child has an equal chance of being a boy or a girl, what is the
probability that they have at least one girl? .875
A cumulative relative frequency distribution shows:
the proportion of data items with values less than or equal to the upper limit of each class.
A data set has the following five-number summary: {31, 50, 58, 62, and 87}. Which of the following pairs of
values in this data set would be considered outliers? 31 and 81
A department store has determined in connection with its inventory control that the demand for a certain CD
player averages 4 per day. If the store stocks 5 of these items on a particular day, what is the probability that
demand will exceed supply? .2150
A disadvantage of using an arithmetic mean to summarize a set of data is that . It can be
biased by one or two extremely small or large values
A display used to compare the frequency, relative frequency, or percent frequency of two categorical variables
is a: stacked bar chart.
A doctor records a pair of information (temperature when admitted, temperature 24 hours later) for 400
hospital patients selected at random. He finds that the average patients' temperature upon admission is 101
degrees and 99 degrees 24 hours later. The standard deviation is 1.5 degrees for temperatures when admitted
and .5 degrees 24 hours later. The correlation between the two temperatures is .8. What is the covariance
between the variables? .60
A dot plot can be used to display . the distribution of one quantitative variable
A dot plot of the ages of 10 employees of a company is shown below.
Ages are rounded to the tens place prior to constructing the graph.
What is the shape of the distribution? Explain.
The distribution of employee ages is skewed to the right because the tail of the distribution extends
further toward higher numbers.
BANA 2372 HOLLANDER
STATISTICS EXAM 1 PRACTICE
QUESTIONS
Darlene F
[COMPANY NAME] [Company address]
, BANA 2372 - Hollander – Midterm Exam 1 - Practice Questions
(Chapters 1-4)
analytics is the set of analytical techniques that yield a course of action. Prescriptive
analytics consists of analytical techniques that use models constructed from past data to predict the
future or to assess the impact of one variable on another. predictive
analytics encompasses the set of analytical techniques that describe what has happened in the past.
descriptive
can be used to determine the percentage of data values that must be within one, two, and
three standard deviations of the mean for data having a bell-shaped distribution.
The empirical rule
can be used to make statements about the proportion of data values that must be within a specified
number of standard deviations of the mean, regardless of the shape of the distribution. Chebyshev's theorem
is the process of using procedures from statistics and computer science to extract useful information
from extremely large databases. data mining
A can be used to graphically present quantitative data.
histogram and a stem-and-leaf display
A is a graphical representation in which the sample space is represented by a rectangle and
events are represented as circles. Venn diagram
A (discrete) sample space, denoted S, is a list of all possible outcomes Oi of an experiment. It is denoted as
S = {𝑶𝟏, 𝑶𝟐, ... , 𝑶𝒌}
A board of directors consists of eight men and four women. A four-member search committee is to be chosen
at random to recommend a new company president. What is the probability that all four members of the
search committee will be women? 1/495 or 0.002
A box plot is a graphical representation of data that is based on .
a five-number summary
A characteristic of interest for the elements is called a(n) . variable
A committee of four is to be selected from a group of 12 people. How many possible committees can be
selected? 495
A common graphical presentation of quantitative data is a..................histogram
A company created a side-by-side bar graph to display their projected financing for the next three years.
The display is shown below.
Which of the following statements is correct?
The company projects to increase income, while decreasing loans and expenses.
,A company plans to interview 10 recent graduates for possible employment. The company has three positions
open. How many groups of three can the company select? 120
A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical
records show that 8% of the employees suffered lost-time accidents last year. Management believes that a
special safety program will reduce such accidents to 7% during the current year. In addition, it estimates that
15% of employees who had lost-time accidents last year will experience a lost-time accident during the
current year.
a. What percentage of the employee will experience a lost-time accident in both years
01.2% Explanation (0.08*0.15) = 0.012 ~ 1.2%
b. What percentage of the employee will experience a lost-time accident over the two-year period (to
1 decimal)? 13.8% Explanation 0.08 + 0.07 - 0.012 = 0.138 or 13.8%
A conditional probability is computed as 𝑃 (𝐴|𝐵) =𝑃(𝐴 ∩ 𝐵)/𝑃(𝐵)
A consulting firm submitted a bid for a large research project. The firm's management initially
felt they had a 50–50 chance of getting the project. However, the agency to which the bid was
submitted subsequently requested additional information on the bid. Past experience indicates
that for 72% of the successful bids and 44% of the unsuccessful bids the agency requested
additional information.
a. What is the prior probability of the bid being successful (that is, prior to the
request for additional information) (to 1 decimal)? 0.5
b. What is the conditional probability of a request for additional information given
that the bid will ultimately be successful (to 2 decimals)? 0.72
P(request │ successful = 0.72
c. Compute the posterior probability that the bid will be successful given a request
for additional information (to 2 decimals). 0.62
𝟎.𝟑𝟔
𝟎.𝟕𝟐 𝒙 𝟎.𝟓𝟎 = = 𝟎. 𝟔𝟐
𝟎.𝟑𝟔
𝟎.𝟕𝟐 𝒙 𝟎.𝟓𝟎+𝟎.𝟒𝟒 𝒙 = 𝟎.𝟑𝟔+𝟎.𝟐𝟐 𝟎.𝟓𝟖
𝟎.𝟓𝟎
A counseling agency has the following data on the gender and marital status of 200 clients:
Male Female
Single 20 30
Married 100 50
a. If the client was a male, what is the probability that he is single? .17
b. Calculate the probability that a client is female. Calculate the probability that the client is female
given that she is married. Are the two events (being a female and being married) dependent or
independent? Explain.
, The events are dependent because the calculated probabilities differ.
A couple has three children. Assuming each child has an equal chance of being a boy or a girl, what is the
probability that they have at least one girl? .875
A cumulative relative frequency distribution shows:
the proportion of data items with values less than or equal to the upper limit of each class.
A data set has the following five-number summary: {31, 50, 58, 62, and 87}. Which of the following pairs of
values in this data set would be considered outliers? 31 and 81
A department store has determined in connection with its inventory control that the demand for a certain CD
player averages 4 per day. If the store stocks 5 of these items on a particular day, what is the probability that
demand will exceed supply? .2150
A disadvantage of using an arithmetic mean to summarize a set of data is that . It can be
biased by one or two extremely small or large values
A display used to compare the frequency, relative frequency, or percent frequency of two categorical variables
is a: stacked bar chart.
A doctor records a pair of information (temperature when admitted, temperature 24 hours later) for 400
hospital patients selected at random. He finds that the average patients' temperature upon admission is 101
degrees and 99 degrees 24 hours later. The standard deviation is 1.5 degrees for temperatures when admitted
and .5 degrees 24 hours later. The correlation between the two temperatures is .8. What is the covariance
between the variables? .60
A dot plot can be used to display . the distribution of one quantitative variable
A dot plot of the ages of 10 employees of a company is shown below.
Ages are rounded to the tens place prior to constructing the graph.
What is the shape of the distribution? Explain.
The distribution of employee ages is skewed to the right because the tail of the distribution extends
further toward higher numbers.
