2016
Basic Business Statistics
Chapter One: Defining and collecting Data
1. Which of the following is a continuous quantitative (numerical) variable?
Concepts and Application – 13th edition
a) The time it takes to download the b) The gender of a student
update for your new mobile app
Test Bank c) The number of text messages that
have been sent last week
d) The number of items purchased
2. Which of the following is a continuous quantitative (numerical) variable?
b) The number of employees of an
a) The color of a student’s eyes insurance company
d) The number of gallons of milk sold at
c) The amount of milk in a 2-liter carton
the local grocery store yesterday
3. Which of the following is a discrete quantitative (numerical) variable?
b) The volume of water released from a
a) The Dow Jones Industrial average
dam
d) The number of employees of an
c) The distance you drove yesterday.
insurance company
4. In statistics, a population consists of:
a) all people living in a country b) all people living in the area under study
c) all subjects or objects whose d) a selection of a limited number of
characteristics are being studied elements
5. In statistics, we define a sample as:
a) people living in one city only b) all items under investigation
c) the target population d) a portion of the population
6. Researchers are concerned that the weight of the average American school child is
increasing implying, among other things, that children’s clothing should be
Cairo University manufactured and marketed in larger sizes. If X is the weight of school children sampled
in a nationwide study, then X is an example of:
Faculty of Commerce
2
Math & Insurance Department
1/1/2016
, a) a categorical variable. b) a discrete variable. 13. A discrete variable is a variable that can assume:
c) a continuous variable. d) a table of random numbers.
a) categorical values only b) an uncountable set of values
c)a countable set of values only d) non-numerical values
7. The classification of student class designation (freshman, sophomore, junior, senior) is
14. A continuous variable is a variable that can assume:
an example of:
a) categorical values only b) an uncountable set of values
a) a categorical variable. b) a discrete variable.
c) a countable set of values only d) non-numerical values
c) a continuous variable. d) a table of random numbers.
15. A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out
8. the possible responses to the question "In which year were you born?" are values from
their view on the U.S. economy.
a:
the population of interest is
a) Discrete numerical variable b) Continuous numerical variable
c) Categorical variable. d) Table of random numbers. a) all the males living in the U.S. when the b) all the females living in the U.S. when the
polled was taken. polled was taken.
c) all the adults living in the U.S. when the d) all the people living in the U.S. when the
9. the possible responses to the question "What is your annual income rounded to the
poll was taken. poll was taken.
nearest thousands?" result in
a) a nominal scale variable. b) an ordinal scale variable.
16. A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out
c) an interval scale variable. d) a ratio scale variable.
their view on the U.S. economy, the 2,150 adults make up
10. the possible responses to the question "How would you rate the quality of your a) the population b) the sample
c) the primary data source d) the secondary data source
purchase experience with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?"
result in
17. the possible responses to the question "Are you 1. Currently employed, 2. Unemployed
a) a nominal scale variable. b) an ordinal scale variable.
c) an interval scale variable. d) a ratio scale variable. but actively looking for job, 3. Unemployed and quit looking for job?" are values from a
a) discrete numerical variable. b) continuous numerical variable.
c) categorical variable. d) table of random numbers.
11. the possible responses to the question "Out of a 100 point score with 100 being the
highest and 0 being the lowest, what is your satisfaction level with the Blu-ray player
18. Which of the following is most likely a population as opposed to a sample?
that you purchased?" result in
a) respondents to a newspaper survey. b) the first 5 students completing an
a) a nominal scale variable. b) an ordinal scale variable. assignment.
c) an interval scale variable. d) a ratio scale variable. c) every third person to arrive at the bank. d) registered voters in a county.
19. A study is under way in Yosemite National Forest to determine the adult height of
12. An insurance company evaluates many numerical variables about a person before American pine trees. Specifically, the study is attempting to determine what factors aid
deciding on an appropriate rate for automobile insurance. The number of claims a a tree in reaching heights greater than 60 feet tall. It is estimated that the forest
person has made in the last 3 years is an example of a _______ numerical variable. contains 25,000 adult American pines. The study involves collecting heights from 250
a) Discrete b) Continuous randomly selected adult American pine trees and analyzing the results. Identify the
population from which the study was sampled.
c) Categorical d) Ordinal a) The 250 randomly selected adult b) The 25,000 adult American pine trees in
American pine trees. the forest.
c) All the adult American pine trees taller d) All American pine trees, of any age, in the
3 4
,than 60 feet. forest. 24. He chancellor of a major university was concerned about alcohol abuse on her campus
and wanted to find out the proportion of students at her university who visited campus
bars on the weekend before the final exam week. Her assistant took a random sample
of 250 students. The portion of students in the sample who visited campus bars on the
20. Most analysts focus on the cost of tuition as the way to measure the cost of a college weekend before the final exam week is an example of __________.
education. But incidentals, such as textbook costs, are rarely considered. A researcher at
Drummand University wishes to estimate the textbook costs of first-year students at a) a summary table. b) a categorical variable.
Drummand. To do so, she monitored the textbook cost of 250 first-year students and c) a parameter. d) a statistic
found that their average textbook cost was $600 per semester. Identify the sample in
the study. 25. Jared was working on a project to look at global warming and accessed an Internet site
a) All Drummand University students. b) All college students. where he captured average global surface temperatures from 1866. Which of the four
c) All first-year Drummand University d) The 250 students that were monitored. methods of data collection was he using?
students. a) Published sources b) Experimentation
c) Surveying d) Observation
21. The manager of the customer service division of a major consumer electronics company
is interested in determining whether the customers who have purchased a Blu-ray 26. A marketing research firm, in conducting a comparative taste test, provided three types
player made by the company over the past 12 months are satisfied with their products. of peanut butter to a sample of households randomly selected within the state. Which
The population of interest is of the 4 methods of data collection is involved when people are asked to compare the
a) all the customers who have bought a Blu- b) all the customers who have bought a Blu- three types of peanut butter?
ray player made by the company over the ray player made by the company and a) Published sources b) Experimentation
past 12 months. brought it in for repair over the past 12 c) Surveying d) Observation
months.
c) all the customers who have used a Blu-ray d) all the customers who have ever bought a 27. Which of the 4 methods of data collection is involved when a person counts the number
player over the past 12 months. Blu-ray player made by the company. of cars passing designated locations on the Los Angeles freeway system?
a) Published sources b) Experimentation
22. The Human Resources Director of a large corporation wishes to develop an employee c) Surveying d) Observation
benefits package and decides to select 500 employees from a list of all (N = 40,000)
workers in order to study their preferences for the various components of a potential 28. A study attempted to estimate the proportion of Florida residents who were willing to
package. All the employees in the corporation constitute the _______. spend more tax dollars on protecting the beaches from environmental disasters.
a) Population b) Sample Twenty-five hundred Florida residents were surveyed. What type of data collection
c) Statistic d) Census procedure was most likely used to collect the data for this study?
a) A designed experiment b) A published source
23. An independent group wants to determine if the consumption of gasoline has increased c) A random sample d) Observational data
due to changes in price. The group randomly selects 320 gas stations from 12 different
states and collects data from the month of the year when gas is the cheapest and from 29. Which of the following is NOT a reason for the need for sampling?
the month of the year when gas is the most expensive. The data shows no significant
a) It is usually too costly to study the whole b) It is usually too time consuming to look at
difference in gas consumption between the two months. In this example, what is the population. the whole population.
variable being studied? c) It is sometimes destructive to observe d) It is always more informative by
a) The 320 gas stations chosen. b) The consumption of gasoline. the entire population. investigating a sample than the entire
c) The 12 different states. d) The price of gasoline. population.
5 6
, chosen from the 1st group, the remaining selected.
observations are every 15th student
thereafter.
30. Which of the following sampling methods is a probability sample? c) All students in a class are grouped d) The first 15 students in a class are
according to their gender. A random sample selected without replacement.
a) Convenience sample b) Quota sample
of 8 is selected from the males and a
c) Stratified sample d) Judgment sample
separate random sample of 7 is drawn from
the females.
31. At US Data Corporation’s web site, they advertised that “Because of our commitment to
quality and our vast amount of industry knowledge and experience, we have grown to 36. Which of the following yields a cluster sample?
be one of America’s leading providers of mailing lists, marketing data, sales leads and
a) All students in a class are divided into b) The best 15 students, according to the
research data. We maintain databases of information on consumers and businesses groups of 15. One student is randomly opinion of the instructor, in a class are
nationwide that set industry standards for mission critical currency, reliability and chosen from the 1st group, the remaining selected.
accuracy.” Trying to reach 500 potential donors for their annual phone donation observations are every 15th student
campaign, a local fire department purchased a list of donors from the company. This list thereafter.
is an example of a c) All students in a class are grouped d) All students in a class are divided into
a) stratified sample b) systematic sample according to their gender. A random groups according to the rows that they are
c) judgment sample d) frame sample of 8 is selected from the males and seated. One of the groups is randomly
a separate random sample of 7 is selected selected.
32. sample of 300 subscribers to a particular magazine is selected from a population frame from the females.
of 9,000 subscribers. If, upon examining the data, it is determined that no subscriber
had been selected in the sample more than once, 37. Which of the following types of samples can you use if you want to make valid statistical
a) the sample could not have been random. b) the sample may have been selected inferences from a sample to a population?
without replacement or with replacement. a) A judgment sample b) A quota sample
c) the sample had to have been selected d) the sample had to have been selected c) A convenience sample d) A probability sample
with replacement. without replacement.
38. The Dean of Students mailed a survey to a total of 400 students. The sample included
33. To obtain a sample of 10 books in the store, the manager walked to the first shelf next 100 students randomly selected from each of the freshman, sophomore, junior, and
to the cash register to pick the first 10 books on that shelf. This is an example of a senior classes on campus last term. What sampling method was used?
a) systematic sample b) simple random sample a) Simple random sample b) Systematic sample
c) stratified sample d) convenience sample c) Stratified sample d) Cluster sample
34. To gather information on the preferences of instructors at universities on topics for a 39. A telemarketer set the company’s computerized dialing system to contact every 25th
business statistics textbook that it will publish, a publishing company invited 10 faculty person listed in the local telephone directory. What sampling method was used?
members who have adopted one of the textbooks that it has published. This is an a) Simple random sample b) Systematic sample
example of a c) Stratified sample d) Cluster sample
a) systematic sample b) judgment sample
c) simple random sample d) stratified sample
40. The manager decides to ask a sample of customers, who have bought a Blu-ray player
made by the company and filed a complaint over the past year, to fill in a survey about
35. Which of the following yields a stratified sample?
whether they are satisfied with the product. This method will most likely suffer from
a) All students in a class are divided into b) The best 15 students, according to the
a) non response error. b) measurement error.
groups of 15. One student is randomly opinion of the instructor, in a class are
7 8
Basic Business Statistics
Chapter One: Defining and collecting Data
1. Which of the following is a continuous quantitative (numerical) variable?
Concepts and Application – 13th edition
a) The time it takes to download the b) The gender of a student
update for your new mobile app
Test Bank c) The number of text messages that
have been sent last week
d) The number of items purchased
2. Which of the following is a continuous quantitative (numerical) variable?
b) The number of employees of an
a) The color of a student’s eyes insurance company
d) The number of gallons of milk sold at
c) The amount of milk in a 2-liter carton
the local grocery store yesterday
3. Which of the following is a discrete quantitative (numerical) variable?
b) The volume of water released from a
a) The Dow Jones Industrial average
dam
d) The number of employees of an
c) The distance you drove yesterday.
insurance company
4. In statistics, a population consists of:
a) all people living in a country b) all people living in the area under study
c) all subjects or objects whose d) a selection of a limited number of
characteristics are being studied elements
5. In statistics, we define a sample as:
a) people living in one city only b) all items under investigation
c) the target population d) a portion of the population
6. Researchers are concerned that the weight of the average American school child is
increasing implying, among other things, that children’s clothing should be
Cairo University manufactured and marketed in larger sizes. If X is the weight of school children sampled
in a nationwide study, then X is an example of:
Faculty of Commerce
2
Math & Insurance Department
1/1/2016
, a) a categorical variable. b) a discrete variable. 13. A discrete variable is a variable that can assume:
c) a continuous variable. d) a table of random numbers.
a) categorical values only b) an uncountable set of values
c)a countable set of values only d) non-numerical values
7. The classification of student class designation (freshman, sophomore, junior, senior) is
14. A continuous variable is a variable that can assume:
an example of:
a) categorical values only b) an uncountable set of values
a) a categorical variable. b) a discrete variable.
c) a countable set of values only d) non-numerical values
c) a continuous variable. d) a table of random numbers.
15. A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out
8. the possible responses to the question "In which year were you born?" are values from
their view on the U.S. economy.
a:
the population of interest is
a) Discrete numerical variable b) Continuous numerical variable
c) Categorical variable. d) Table of random numbers. a) all the males living in the U.S. when the b) all the females living in the U.S. when the
polled was taken. polled was taken.
c) all the adults living in the U.S. when the d) all the people living in the U.S. when the
9. the possible responses to the question "What is your annual income rounded to the
poll was taken. poll was taken.
nearest thousands?" result in
a) a nominal scale variable. b) an ordinal scale variable.
16. A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out
c) an interval scale variable. d) a ratio scale variable.
their view on the U.S. economy, the 2,150 adults make up
10. the possible responses to the question "How would you rate the quality of your a) the population b) the sample
c) the primary data source d) the secondary data source
purchase experience with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?"
result in
17. the possible responses to the question "Are you 1. Currently employed, 2. Unemployed
a) a nominal scale variable. b) an ordinal scale variable.
c) an interval scale variable. d) a ratio scale variable. but actively looking for job, 3. Unemployed and quit looking for job?" are values from a
a) discrete numerical variable. b) continuous numerical variable.
c) categorical variable. d) table of random numbers.
11. the possible responses to the question "Out of a 100 point score with 100 being the
highest and 0 being the lowest, what is your satisfaction level with the Blu-ray player
18. Which of the following is most likely a population as opposed to a sample?
that you purchased?" result in
a) respondents to a newspaper survey. b) the first 5 students completing an
a) a nominal scale variable. b) an ordinal scale variable. assignment.
c) an interval scale variable. d) a ratio scale variable. c) every third person to arrive at the bank. d) registered voters in a county.
19. A study is under way in Yosemite National Forest to determine the adult height of
12. An insurance company evaluates many numerical variables about a person before American pine trees. Specifically, the study is attempting to determine what factors aid
deciding on an appropriate rate for automobile insurance. The number of claims a a tree in reaching heights greater than 60 feet tall. It is estimated that the forest
person has made in the last 3 years is an example of a _______ numerical variable. contains 25,000 adult American pines. The study involves collecting heights from 250
a) Discrete b) Continuous randomly selected adult American pine trees and analyzing the results. Identify the
population from which the study was sampled.
c) Categorical d) Ordinal a) The 250 randomly selected adult b) The 25,000 adult American pine trees in
American pine trees. the forest.
c) All the adult American pine trees taller d) All American pine trees, of any age, in the
3 4
,than 60 feet. forest. 24. He chancellor of a major university was concerned about alcohol abuse on her campus
and wanted to find out the proportion of students at her university who visited campus
bars on the weekend before the final exam week. Her assistant took a random sample
of 250 students. The portion of students in the sample who visited campus bars on the
20. Most analysts focus on the cost of tuition as the way to measure the cost of a college weekend before the final exam week is an example of __________.
education. But incidentals, such as textbook costs, are rarely considered. A researcher at
Drummand University wishes to estimate the textbook costs of first-year students at a) a summary table. b) a categorical variable.
Drummand. To do so, she monitored the textbook cost of 250 first-year students and c) a parameter. d) a statistic
found that their average textbook cost was $600 per semester. Identify the sample in
the study. 25. Jared was working on a project to look at global warming and accessed an Internet site
a) All Drummand University students. b) All college students. where he captured average global surface temperatures from 1866. Which of the four
c) All first-year Drummand University d) The 250 students that were monitored. methods of data collection was he using?
students. a) Published sources b) Experimentation
c) Surveying d) Observation
21. The manager of the customer service division of a major consumer electronics company
is interested in determining whether the customers who have purchased a Blu-ray 26. A marketing research firm, in conducting a comparative taste test, provided three types
player made by the company over the past 12 months are satisfied with their products. of peanut butter to a sample of households randomly selected within the state. Which
The population of interest is of the 4 methods of data collection is involved when people are asked to compare the
a) all the customers who have bought a Blu- b) all the customers who have bought a Blu- three types of peanut butter?
ray player made by the company over the ray player made by the company and a) Published sources b) Experimentation
past 12 months. brought it in for repair over the past 12 c) Surveying d) Observation
months.
c) all the customers who have used a Blu-ray d) all the customers who have ever bought a 27. Which of the 4 methods of data collection is involved when a person counts the number
player over the past 12 months. Blu-ray player made by the company. of cars passing designated locations on the Los Angeles freeway system?
a) Published sources b) Experimentation
22. The Human Resources Director of a large corporation wishes to develop an employee c) Surveying d) Observation
benefits package and decides to select 500 employees from a list of all (N = 40,000)
workers in order to study their preferences for the various components of a potential 28. A study attempted to estimate the proportion of Florida residents who were willing to
package. All the employees in the corporation constitute the _______. spend more tax dollars on protecting the beaches from environmental disasters.
a) Population b) Sample Twenty-five hundred Florida residents were surveyed. What type of data collection
c) Statistic d) Census procedure was most likely used to collect the data for this study?
a) A designed experiment b) A published source
23. An independent group wants to determine if the consumption of gasoline has increased c) A random sample d) Observational data
due to changes in price. The group randomly selects 320 gas stations from 12 different
states and collects data from the month of the year when gas is the cheapest and from 29. Which of the following is NOT a reason for the need for sampling?
the month of the year when gas is the most expensive. The data shows no significant
a) It is usually too costly to study the whole b) It is usually too time consuming to look at
difference in gas consumption between the two months. In this example, what is the population. the whole population.
variable being studied? c) It is sometimes destructive to observe d) It is always more informative by
a) The 320 gas stations chosen. b) The consumption of gasoline. the entire population. investigating a sample than the entire
c) The 12 different states. d) The price of gasoline. population.
5 6
, chosen from the 1st group, the remaining selected.
observations are every 15th student
thereafter.
30. Which of the following sampling methods is a probability sample? c) All students in a class are grouped d) The first 15 students in a class are
according to their gender. A random sample selected without replacement.
a) Convenience sample b) Quota sample
of 8 is selected from the males and a
c) Stratified sample d) Judgment sample
separate random sample of 7 is drawn from
the females.
31. At US Data Corporation’s web site, they advertised that “Because of our commitment to
quality and our vast amount of industry knowledge and experience, we have grown to 36. Which of the following yields a cluster sample?
be one of America’s leading providers of mailing lists, marketing data, sales leads and
a) All students in a class are divided into b) The best 15 students, according to the
research data. We maintain databases of information on consumers and businesses groups of 15. One student is randomly opinion of the instructor, in a class are
nationwide that set industry standards for mission critical currency, reliability and chosen from the 1st group, the remaining selected.
accuracy.” Trying to reach 500 potential donors for their annual phone donation observations are every 15th student
campaign, a local fire department purchased a list of donors from the company. This list thereafter.
is an example of a c) All students in a class are grouped d) All students in a class are divided into
a) stratified sample b) systematic sample according to their gender. A random groups according to the rows that they are
c) judgment sample d) frame sample of 8 is selected from the males and seated. One of the groups is randomly
a separate random sample of 7 is selected selected.
32. sample of 300 subscribers to a particular magazine is selected from a population frame from the females.
of 9,000 subscribers. If, upon examining the data, it is determined that no subscriber
had been selected in the sample more than once, 37. Which of the following types of samples can you use if you want to make valid statistical
a) the sample could not have been random. b) the sample may have been selected inferences from a sample to a population?
without replacement or with replacement. a) A judgment sample b) A quota sample
c) the sample had to have been selected d) the sample had to have been selected c) A convenience sample d) A probability sample
with replacement. without replacement.
38. The Dean of Students mailed a survey to a total of 400 students. The sample included
33. To obtain a sample of 10 books in the store, the manager walked to the first shelf next 100 students randomly selected from each of the freshman, sophomore, junior, and
to the cash register to pick the first 10 books on that shelf. This is an example of a senior classes on campus last term. What sampling method was used?
a) systematic sample b) simple random sample a) Simple random sample b) Systematic sample
c) stratified sample d) convenience sample c) Stratified sample d) Cluster sample
34. To gather information on the preferences of instructors at universities on topics for a 39. A telemarketer set the company’s computerized dialing system to contact every 25th
business statistics textbook that it will publish, a publishing company invited 10 faculty person listed in the local telephone directory. What sampling method was used?
members who have adopted one of the textbooks that it has published. This is an a) Simple random sample b) Systematic sample
example of a c) Stratified sample d) Cluster sample
a) systematic sample b) judgment sample
c) simple random sample d) stratified sample
40. The manager decides to ask a sample of customers, who have bought a Blu-ray player
made by the company and filed a complaint over the past year, to fill in a survey about
35. Which of the following yields a stratified sample?
whether they are satisfied with the product. This method will most likely suffer from
a) All students in a class are divided into b) The best 15 students, according to the
a) non response error. b) measurement error.
groups of 15. One student is randomly opinion of the instructor, in a class are
7 8
