Questions and Verified Answers
A researcher concludes that bananas create healthy children because the researcher's notes indicate
that children who eat a banana every day are healthy. Which misuse of statistics would this study be an
example of if these children also eat a balanced diet and exercise daily?
Confusion of association and causality
Association and causality
Occurs when a researcher notices a relationship between two variables and assumes that one variable
is the cause of the other
In the month of December, there is a strong positive correlation between airline ticket sales and retail
sales. Which question should the researcher consider before concluding that the correlation statistic
implies that airline sales drive retail sales?
Does a causal relationship truly exist?
Addition rule
or
Multiplication principle
When the probabilities of multiple events are multiplied together to determine the likelihood of all of
those events occurring eg and, both or all eg A cable company offers its customers both cable
television and internet. What statistical rule should be used to determine the probability that
customers will have both cable television and internet?
0/1
,intersection
the set of points the figures have in common
A medical care provider determines the probability that a patient needs treatment for a broken bone,
the probability that a patient needs treatment for a concussion, and the probability that a patient needs
treatment for both a broken bone and a concussion. Which two techniques apply in finding the
probability that a patient needs treatment for a broken bone and a concussion?
Multiplication principle
Intersection
Bayes' Theorem
The probability of an event occurring based upon other event probabilities. eg scratch off ticket eg. A
department store is considering a new credit policy to reduce defaults on payments. Its records show
that 95% of defaults have at least 2 late payments. Also, 3% of all customers default and 30% of those
customers who have not defaulted have a least 2 late payments. What statistical rule should be used
to find the probability that a customer will default given that at least 2 payments were late?
A hardware store has found that there is a 0.25 probability that a customer buys an electrical product, a
0.45 probability that a customer buys a plumbing product, and a 0.10 probability that a customer buys
an electrical part if the purchase a plumbing part. Given this information, which statistical rule can be
used to determine the probability that a customer buys a plumbing product given that this customer has
purchased an electrical product?
Bayes' Theorem
Which graphical tool is used to illustrate a possible relationship or correlation between two variables?
Scatterplot
, What does it mean when an individual data point has a z-score of -2?
The data point is two standard deviations less than the mean of the data set.
Mode
The value that occurs most frequently in a given data set.
Given the following data set:
9 12 14 10 8 11 12
Which is the mode?
12
Analytics is a broad term that refers to a variety of tools that inform managerial decisions.
Prescriptive
performance tool
The Performance tool provides server demand statistics for the current user since log in, or since the
last time you reset the Performance tool statistics to zero. These statistics include detailed trace of
performance information about running activities, when condition rules, and data transforms run by
your requestor session. You can use these results to tune your rules for improved server performance.
Net Promoter Score (NPS)
an indirect word-of-mouth measure of true attitudinal loyalty
Balanced Scorecard (BSC)