Business Statistics – 9th Edition (Groebner, Shannon & Fry) – Complete Study and Test Preparation Material

,Business Statistics, 9e (Groebner/Shannon/Fry)
Chapter 1 The Where, Why, and How of Data Collection

1) Statistics is a discipline that involves tools and techniques used to describe data and draw conclusions.
Answer: TRUE
Diff: 1
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

2) In this course, the term business statistics refers to the set of tools and techniques that are used to
convert information into meaningful data.
Answer: FALSE
Diff: 1
Keywords: descriptive statistics and/or inferential statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

3) Descriptive statistics allow a decision maker to reach a conclusion about a population based on a
subset from the population.
Answer: FALSE
Diff: 2
Keywords: descriptive statistics and/or inferential statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

4) An accountant has recently prepared a report for a client that contains a variety of graphs and charts.
In doing so, she has used descriptive statistical methods.
Answer: TRUE
Diff: 1
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

5) Descriptive statistical tools include graphs, charts, and numerical measures.
Answer: TRUE
Diff: 1
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

6) A histogram is an example of a numerical measure.
Answer: FALSE
Diff: 1
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

7) Companies frequently use charts and graphs in their regular communications with stockholders and
investors; this shows the use of descriptive statistics.
Answer: TRUE
Diff: 1
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
1-1
Copyright © 2014 Pearson Education, Inc.

,Outcome: none

8) A manufacturing manager has developed a table that shows the average production volume each day
for the past three weeks. The average production level is an example of a numerical measure.
Answer: TRUE
Diff: 1
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

9) An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in an
effort to estimate the percentage of all accounts that have incorrect journal entries is using descriptive
statistical analysis to reach the conclusion.
Answer: FALSE
Diff: 2
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

10) The editor of a local newspaper is interested in determining the percentage of subscribers who read
the paper's editorials. The statistical technique that he would use is called estimation.
Answer: TRUE
Diff: 2
Keywords: descriptive statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

11) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about a
large data set based on a subset of the data.
Answer: TRUE
Diff: 1
Keywords: inferential statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

12) Another term for the arithmetic average is the mean.
Answer: TRUE
Diff: 1
Keywords: descriptive statistics, mean
Section: 1-1 What Is Business Statistics?
Outcome: none

13) Statistical inference would be used as the primary statistical tool by a quality control manager who
wishes to estimate the average weight of her company's products.
Answer: TRUE
Diff: 2
Keywords: inferential statistics
Section: 1-1 What Is Business Statistics?
Outcome: none

14) A light bulb manufacturer wants to advertise the average life of its light bulbs so it tests a subset of
light bulbs. This is an example of inferential statistics.
Answer: TRUE
Diff: 2
Keywords: inferential statistics
1-2
Copyright © 2014 Pearson Education, Inc.

, Section: 1-1 What Is Business Statistics?
Outcome: none

15) A sales manager has five salespeople. The following are the number of units sold by the five
salespeople during the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number of units sold was 6
units.
Answer: TRUE
Diff: 2
Keywords: descriptive statistics, mean
Section: 1-1 What Is Business Statistics?
Outcome: none

16) Some of the most common methods of collecting data include experiments, telephone surveys, mail
questionnaires, direct observations, and personal interviews.
Answer: TRUE
Diff: 1
Keywords: data collection
Section: 1-2 Procedures for Collecting Data
Outcome: 1

17) An experiment is a process that generates data as its outcome.
Answer: TRUE
Diff: 1
Keywords: data collection
Section: 1-2 Procedures for Collecting Data
Outcome: 1

18) Experimental design is a plan for performing an experiment where the effects of one or more factors
on the variable of interest are measured.
Answer: TRUE
Diff: 2
Keywords: data collection, experiments
Section: 1-2 Procedures for Collecting Data
Outcome: 1

19) Typically, it is possible to include a larger number of questions in a phone survey than in a mail
survey since it takes less time to complete the survey over the phone.
Answer: FALSE
Diff: 2
Keywords: data collection
Section: 1-2 Procedures for Collecting Data
Outcome: 1

20) An Internet-based or emailed survey is not an alternative method of data collection.
Answer: FALSE
Diff: 1
Keywords: data collection
Section: 1-2 Procedures for Collecting Data
Outcome: 1

21) An open-end question requires respondents to choose from a short list of choices
Answer: FALSE
Diff: 1
Keywords: data collection
Section: 1-2 Procedures for Collecting Data
1-3
Copyright © 2014 Pearson Education, Inc.