Test Bank for Statistics for Managers Using Microsoft Excel, 8th Edition

Organizing and Visualizing Variables 2-1



Test Bank for Statistics for Managers Using
Microsoft Excel, 8th Edition, David M. Levine

,2-2 Organizing and Visualizing Variables


CHAPTER 2: ORGANIZING AND VISUALIZING
VARIABLES
SCENARIO 2-1

An insurance company evaluates many numerical variables about a person before deciding on an
appropriate rate for automobile insurance. A representative from a local insurance agency selected a
random sample of insured drivers and recorded, X, the number of claims each made in the last 3
years, with the following results.
X f
1 14
2 18
3 12
4 5
5 1

1. Referring to Scenario 2-1, how many drivers are represented in the sample?
a) 5
b) 15
c) 18
d) 50

ANSWER:
d
TYPE: MC DIFFICULTY: Easy
KEYWORDS: frequency distribution

2. Referring to Scenario 2-1, how many total claims are represented in the sample?
a) 15
b) 50
c) 111
d) 250

ANSWER:
c
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: interpretation, frequency distribution

3. A type of vertical bar chart in which the categories are plotted in the descending rank order of the
magnitude of their frequencies is called a
a) contingency table.
b) Pareto chart.
c) stem-and-leaf display.
d) pie chart.

ANSWER:
b
TYPE: MC DIFFICULTY: Easy
KEYWORDS: Pareto chart

, Organizing and Visualizing Variables 2-3


SCENARIO 2-2

At a meeting of information systems officers for regional offices of a national company, a survey was
taken to determine the number of employees the officers supervise in the operation of their
departments, where X is the number of employees overseen by each information systems officer.
X f_
1 7
2 5
3 11
4 8
5 9

4. Referring to Scenario 2-2, how many regional offices are represented in the survey results?
a)5
b) 11
c) 15
d) 40

ANSWER:
d
TYPE: MC DIFFICULTY: Easy
KEYWORDS: interpretation, frequency distribution

5. Referring to Scenario 2-2, across all of the regional offices, how many total employees were
supervised by those surveyed?
a) 15
b) 40
c) 127
d) 200

ANSWER:
c
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: interpretation, frequency distribution

6. The width of each bar in a histogram corresponds to the
a) differences between the boundaries of the class.
b) number of observations in each class.
c) midpoint of each class.
d) percentage of observations in each class.

ANSWER:
a
TYPE: MC DIFFICULTY: Easy
KEYWORDS: histogram

, 2-4 Organizing and Visualizing Variables


SCENARIO 2-3

Every spring semester, the School of Business coordinates a luncheon with local business leaders for
graduating seniors, their families, and friends. Corporate sponsorship pays for the lunches of each of
the seniors, but students have to purchase tickets to cover the cost of lunches served to guests they
bring with them. The following histogram represents the attendance at the senior luncheon, where X is
the number of guests each graduating senior invited to the luncheon and f is the number of graduating
seniors in each category.

160 152

140

120

100
85
80

60

40

17 18
20
3 0
0
0 1 2 3 4 5
Guests per Student


7. Referring to the histogram from Scenario 2-3, how many graduating seniors attended the
luncheon?
a) 4
b) 152
c) 275
d) 388

ANSWER:
c
TYPE: MC DIFFICULTY: Difficult
EXPLANATION: The number of graduating seniors is the sum of all the frequencies, f.
KEYWORDS: interpretation, histogram

8. Referring to the histogram from Scenario 2-3, if all the tickets purchased were used, how many
guests attended the luncheon?
a) 4
b) 152
c) 275
d) 388

ANSWER:
d
TYPE: MC DIFFICULTY: Difficult

6
EXPLANATION: The total number of guests is X f
i1 i i

KEYWORDS: interpretation, histogram