Test Bank for Business Statistics, 4th Edition by Robert A. Donnelly

Business Statistics 4th Edition
Answers Included
Chapter 1 Test


MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Statistics is the mathematical science that deals with the collection, analysis, and presentation of data–data that can
then be used as a basis for inference and induction.
A) True
B) False
Objective:


2) Business statistics are statistics applied to the business world in an effort to improve people's decision making in
fields such as marketing, operations, finance, and human resources.
A) True
B) False
Objective:


3) Collecting data about the television viewers for the Summer Olympics is an example of using statistics in the field
of ________.
A) advertising B) operations C) human resources D) finance
Objective:


4) Using income data to determine the credit worthiness of a consumer who wishes to purchase a new car is an
example of using statistics in the field of ________.
A) advertising B) finance C) operations D) marketing research
Objective:


5) Gathering information from potential customers in an effort to determine their preferences is an example of using
statistics in the field of ________.
A) finance B) advertising C) operations D) marketing research
Objective:


6) Using quality control techniques to test the salt content of pretzels before they are packaged for the consumer is an
example of using statistics in the field of ________.
A) operations B) marketing research C) finance D) advertising
Objective:


7) ________ is (are) derived from facts for the purpose of making decisions.
A) Statistics B) Information C) Samples D) Data
Objective:


8) Information is the basic foundation for the field of statistics and can be defined as the value assigned to a specific
observation or measurement.
A) True
B) False
Objective:




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, 9) One of the major reasons to use statistics is to transform data into information.
A) True
B) False
Objective:


10) An employee records the number of customers that arrive at a retail store today. This is an example of collecting
information.
A) True
B) False
Objective:


11) Primary data is data collected by the person or organization that eventually uses the data.
A) True
B) False
Objective:


12) Asking customers at the shopping mall about their voting intentions in the upcoming political election is an
example of secondary data.
A) True
B) False
Objective:


13) Analyzing unemployment data from the Bureau of Labor Statistics is an example of using secondary data.
A) True
B) False
Objective:


14) A hotel employee asks customers who are checking out to rate their satisfaction on a scale of 1-10. This is an
example of collecting primary data.
A) True
B) False
Objective:


15) Analyzing snowfall amounts in New York over the past 100 years to help predict future weather patterns is an
example of using primary data.
A) True
B) False
Objective:


16) Bias can occur in a survey when a question is stated in a way that encourages or leads a respondent to a particular
answer.
A) True
B) False
Objective:




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,17) A restaurant manager randomly selects tables at which customers have just been seated and records the amount of
time it takes for the wait staff to greet these customers. This is an example of an experiment being used to collect
data.
A) True
B) False
Objective:


18) A marketing research employee randomly selects adults in a shopping mall and asks them what type of car that
they drive. This is an example of using direct observation to collect data.
A) True
B) False
Objective:


19) A manager of an electronics store would like to investigate the impact that price has on the demand for laptop
computers. Each week, the price of a Dell laptop is adjusted and the demand for each week is recorded. This is an
example of an experiment being used to collect data.
A) True
B) False
Objective:


20) To help ensure good questionnaire design, it is recommended that a survey is tested on a small group of
respondents before releasing it to the actual participants.
A) True
B) False
Objective:


21) It is recommended that personal demographic questions be placed at the beginning of the questionnaire because
respondents find these questions easy to answer.
A) True
B) False
Objective:


22) Interval data deals strictly with qualitative data assigned to predetermined categories.
A) True
B) False
Objective:


23) Education level is an example of nominal data.
A) True
B) False
Objective:


24) Nominal data has all the features of interval data with the added benefit of having a true zero point.
A) True
B) False
Objective:




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, 25) The interval measurement level is considered quantitative data.
A) True
B) False
Objective:


26) The ratio measurement level is considered qualitative data.
A) True
B) False
Objective:


27) The number of pages in your business statistics textbook is an example of quantitative data.
A) True
B) False
Objective:


28) Your cell phone number is an example of quantitative data.
A) True
B) False
Objective:


29) A respondent to a survey indicates that she drives a Ford Taurus. This is an example of qualitative data.
A) True
B) False
Objective:


30) A respondent to a survey indicates that he has lived in his current residence for three years. This is an example of
qualitative data.
A) True
B) False
Objective:


31) The mathematical operation of addition can be performed on nominal data.
A) True
B) False
Objective:


32) The mathematical operation of multiplication can be performed on interval data.
A) True
B) False
Objective:


33) All mathematical operations can be performed on ratio data.
A) True
B) False
Objective:




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