MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023, Exams of Statistics

Download MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 and more Exams Statistics in PDF only on Docsity! MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 The table below provides summary information about students in a class. The sex of each individual and their age is given. Male Female Total Under 20 yrs old 10 8 18 Between 20 and 25yrs old 12 18 30 Older than 25 yrs. 26 26 52 Total 48 52 100 If a student is randomly selected from this group, what is the probability that the student is male? Selected Answer: Response Feedback: 0.4 8 Correct! Out of 100 students, 48 are male; thus the probability of a randomly selected student being male is 0.48. • Question 2 If two events are mutually exclusive, then their joint probability is . 1 out of 1 points Selected Answer: Response Feedback: always zero Correct! A joint probability is the intersection of two events. Since there mutually exclusive events do not intersect, the joint probability is zero. Selected Answer: Response Feedback: joint Correct! A joint probability table displays the intersection (joint) probabilities along with the marginal probabilities of a given problem. • Question 4 1 out of 1 points An automobile dealer wishes to investigate the relation between the gender of the buyer and type of vehicle purchased. Based on the following joint probability table that was developed from the dealer’s records for the previous year, P (SUV) = . • Question 3 1 out of 1 points A(n) probability table displays the intersection (joint) probabilities along with the marginal probabilities of a given problem. 3.2.4 Question 1 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Type of Vehicle Buyer Gender Female Male Total SUV Not SUV .30 .40 Total .60 1.00 Selected 0.3 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Investment Industry Sector Objective Electronics Airlines Healthcare Total Growth 100 10 40 150 Income 20 20 10 50 Total 120 30 50 200 If a stock is selected randomly from Meagan's portfolio, P (Airlines|Income) = . Selected Answer: Response Feedback: 0.4 0 Correct! Solving for the conditional probability P(Airlines|Income) = P (Airlines Income) / P(Income) = 0.10 / 0.25 = 0.40. Selected Answer: Response Feedback: Baye s’ Correct! Bayes' rule is a formula that extends the use of the law of conditional probabilities to allow revision of original probabilities with new information. Selected Answer: Response Feedback: • Question 10 1 out of 1 points Given two events A and B each with a non-zero probability, if the conditional probability of A given B is , it implies that the events A and B are mutually exclusive. • Question 9 1 out of 1 points Which rule extends the use of the law of conditional probabilities to allow revision of original probabilities with new information? • Question 8 1 out of 1 points Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.' MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 z e r o C o r r ect! When two events, A and B, are mutually exclusive, the conditional probability of A given B will be zero. • Question 11 1 out of 1 points MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Let F be the event that a student is enrolled in a finance course, and let S be the event that a student is enrolled in a statistics course. It is known that 40% of all students are enrolled in a finance course and 35% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and finance. Find the probability that a student is in finance and is also in statistics. Selected Answer: Response Feedback: 0.1 5 Correct! The probability of being in both finance and statistics is 0.15. • Question 12 1 out of 1 points Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Plano Power Plant. Ten percent of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; 7% of all plant employees work in the finishing department and are absent excessively. A plant employee is selected randomly; F is the event "works in the finishing department;" and A is the event "is absent excessively." P(A F) = . Selected Answer: Response Feedback: 0.2 3 Correct. Under the general law of addition, • Question 13 1 out of 1 points Let F be the event that a student is enrolled in a finance course, and let S be the event that a student is enrolled in a statistics course. It is known that 40% of all students are enrolled in a finance course and 35% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and finance. A student is randomly selected, what is the probability that the student is enrolled in either finance or statistics or both? Selected Answer: Response Feedback: 0.6 0 Correct! The probability a student is in statistics, finance, or both is equal to the probability a student is in statistics plus the probability the student is in finance minus the probability of the intersection (both finance and statistics) . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected neither A • Question 16 0 out of 1 points Given that two events, A and B, are independent, if the marginal probability of A is 0.6, the conditional probability of will be 0.4. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Answer: nor B Response Feedback: Incorrect. If the marginal probability of A is 0.6, the marginal probability of Not A is 0.4. • Question 17 1 out of 1 points Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Plano Power Plant. Ten percent of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; and 7% of all plant employees work in the finishing department and are absent excessively. A plant employee is selected randomly; F is the event "works in the finishing department;" and A is the event "is absent excessively." P(A|F) = . Selected Answer: Response Feedback: 0.7 0 Correct! Solving for the conditional probability P(A|F) = P (A ∩ F) / P(F) = 0.07 / 0.10 = 0.70. • Question 18 0 out of 1 points The probability of A B where A is receiving a state grant and B is receiving a federal grant is the probability of receiving . Selected Answer: Response Feedback: no more than two federal grants Incorrect. The union of X, Y is formed combining elements from each of the sets. It places no restrictions on the number of times any event might occur. • Question 19 1 out of 1 points Let F be the event that a student is enrolled in a finance course, and let S be the event that a student is enrolled in a statistics course. It is known that 40% of all students are enrolled in a finance course and 35% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and finance. A student is randomly selected, and it is found that the student is enrolled in finance. What is the probability that this student is also enrolled in statistics? Selected Answer: MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Response Feedback: 0.37 5 Correct! Solving for the conditional probability of being in statistics given the student is in finance is given by 0.15 / 0.40 = 0.375. • Question 20 1 out of 1 points MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 experiment contains elementary events. Selected Answer: Response Feedback: 2,30 0 Correct! Using the method for computing the number of combinations, 25!/ (3!*22!) = 2,300. • Question 3 1 out of 1 points Consider the following sample space, S, and several events defined on it. S = {Albert, Betty, Abel, Jack, Patty, Meagan}, and the events are: F = {Betty, Patty, Meagan}, H = {Abel, Meagan}, and P = {Betty, Abel}. The complement of F is . Selected Answer: Response Feedback: {Albert, Abel, Jack} Correct! All the elementary events of an experiment not in X comprise its complement. The complement of F is thus {Albert, Abel, Jack}. • Question 4 0 out of 1 points Consider the following sample space, S, and several events defined on it. S = {Albert, Betty, Abel, Jack, Patty, Meagan}, and the events are: F = {Betty, Patty, Meagan}, H = {Abel, Meagan}, and P = {Betty, Abel}. F ∩ H is . Selected Answers: Response Feedback: {Meagan} {Betty, Patty, Abel, Meagan} Incorrect. The intersection refers to the elements common to both sets. The intersection of F and H is {Meagan}. • Question 5 Which construct is used to develop knowledge of the fundamental mathematical tools for quantitatively assessing risk? 1 out of 1 points Selected Answer: Response Feedback: Probabilit y Correct! Probability is central to the computation of risk. • Question 6 0 out of 1 points Leonardo Barichello describes a thought experiment in which two people, stranded on an island, are tossing dice to decide who will get the last banana. Player 1 wins if the largest number that comes up is a 1, 2, 3, or 4; player 2 wins in the largest number is a 5 or 6. Barichello says most people think that Player 1 has the highest likelihood of winning. People who believe this are relying on the MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 method. Selected Answer: Response Feedback: a priori probability Incorrect. By going with their hunches about what is right, people who think the first player has the highest likelihood of winning are relying on subjective probabilities, MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 and they are wrong. • Question 7 If X and Y are mutually exclusive events, then if X occurs . Y cannot occur X and Y are complements 0 out of 1 points Response Feedback: Incorrect. Two or more events are mutually exclusive events if the occurrence of one event precludes the occurrence of the other event(s). Investment Industry Sector Objective Electronics Airlines Healthcare Total Growth 84 21 35 140 Income 36 9 15 60 Total 120 30 50 200 Which of the following statements is true? Selected Answer: Response Feedback: Electronics and Growth are independent. Correct! Two or more events are independent events if the occurrence or nonoccurrence of one of the events does not affect the occurrence or nonoccurrence of the other event(s). • Question 9 1 out of 1 points Consider the following sample space, S, and several events defined on it. S = {Albert, Betty, Abel, Jack, Patty, Meagan}, and the events are: F = {Betty, Patty, Meagan}, H = {Abel, Meagan}, and P = {Betty, Abel}. F H is . Selected Answer: Response Feedback: {Betty, Abel, Patty, Meagan} Correct! The union of two sets is formed by combining elements from each of the sets and is { Betty, Abel, Patty, Meagan}. • Question 10 1 out of 1 points Assigning probabilities by dividing the number of ways that an event can occur by the total number of possible outcomes in an experiment is called the method. • Question 8 1 out of 1 points Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.' MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • Question 14 0 out of 1 points 10. Leonardo Barichello describes a thought experiment in which two people, stranded on an island, are tossing dice to decide who will get the last banana. Player 1 wins if the largest number that comes up is a 1, 2, 3, or 4; Player 2 wins in the largest number is a 5 or 6. Barichello explains how the probability of each player winning can be calculated by identifying the 36 possible outcomes MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 and then counting up those in which Player 1 would win and those in which Player 2 would win. By doing so, you would be using the method. Selected Answer: Response Feedback: relative frequency Incorrect. When we assign probabilities using the classical method, the probability of an individual event occurring is determined as the ratio of the number of items in a population containing the event (ne) to the total number of items in the population (N). In this case, ne refers to the number of ways Player 2 could win (there are 20 such ways) and dividing by the total number of possible outcomes, which is 36; 20/36 = 0.56. Selected Answer: Response Feedback: probabilit y Correct! A probability distribution is a statistical model that shows the possible outcomes of a particular event or course of action as well as the statistical likelihood of each event. Selected Answer: Response Feedback: classic al Correct! When probabilities are assigned based on laws and rules, the method is referred to as the classical method of assigning probabilities. Selected Answer: Response Feedback: exhausti ve Incorrect. Two or more events are mutually exclusive events if the occurrence of one event precludes the occurrence of the other event(s). • Question 18 The list of all elementary • Question 17 0 out of 1 points If the occurrence of one event precludes the occurrence of another event, then the two events are . • Question 16 1 out of 1 points The method of assigning probabilities to uncertain outcomes based on laws and rules is called the method. • Question 15 1 out of 1 points A(n) distribution is a statistical model that shows the possible outcomes of a particular event or course of action as well as the statistical likelihood of each event. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 events for an experiment is called the . 1 out of 1 points Selected Answer: Response Feedback: sample space Correct! A sample space is a complete roster or listing of all elementary events for an experiment. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • Question 5 Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the following performance statistics for two new stocks. Rate of Return Stock Mean Standard Deviation Salas Products, Inc. 15% 5% Hot Boards, Inc. 20% 5% The coefficient of variation for Salas Products, Inc. is . 1 out of 1 points Selected 33 Answer: % Response Feedback: Correct! The coefficient of variation is a statistic that is the ratio of the standard deviation to the mean expressed in percentage; = 5/15 = 33%. • Question 6 As the variability of returns on investment increases, . 1 out of 1 points Selected Answer: perceived risk increases Response Feedback: Correct! Perception of risk is directly proportional to variability; that is, as variability of risk increases, perceived risk also increases. • Question 7 1 out of 1 points The average starting salary for graduates at a university is $33,000 with a standard deviation of MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 $2,000. If a histogram of the data shows that it takes on a mound shape, the empirical rule says that approximately 95% of the graduates would have a starting salary between . Selected $27,000 and MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Answer: $39,000 Response Feedback: Correct! Using the empirical rule, 95% of graduates will have a starting salary within two standard deviations of the mean, or between $27,000 and $39,000. Selected Answer: relatively low variability Response Feedback: Correct! Treasury Bills have low variability in their returns and are thus seen as a relatively safe investment. • Question 9 0 out of 1 points An electrical component for one of the main products your company produces is specified to have an electrical impedance of 2.15 ohms. However, the manufacturing process is not perfect and there is some variation on the actual impedance of these components. A recent statistical study indicated that in fact, the impedances are normally distributed with a mean impedance of 2.15 ohms and a standard deviation of 0.05 ohms. When the impedance exceeds 2.25 ohms, the product malfunctions, so that component must be rejected and replaced by one whose impedance is within the acceptable limit. If you need 1350 usable components, how many components should you order? Selected Answer: 158 4 Response Feedback: Incorrect. Because the impedances are normally distributed, the empirical rule can be applied. We know 95% of the components will lie within two standard deviations of the mean and that 2.25% will lie above two standard deviations (that is, above 2.25 ohms). Thus, 1385 components must be ordered to have 1350 usable components. Selected Answer: 1050 and 1350 hours Response Feedback: Correct! According to Chebyshev's theorem, the percentage of values within three standard deviations of the mean is at least 89%; thus at least 89% of the bulbs will last between 1050 and 1350 hours. • Question 10 1 out of 1 points The mean life of a particular brand of light bulb is 1200 hours and the standard deviation is 50 hours. It can be concluded that at least 89% of this brand of bulbs will last between . • Question 8 1 out of 1 points Because Treasury Bills have in their returns on investment, they are seen as a relatively safe investment. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 1 out of 1 points Selected Answer: 0.70 3 Response Correct! Using the formula for populations, the standard deviation is 0.703. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Feedback: • Question 15 The range of a data set is given by the . 1 out of 1 points Selected Answer: difference between the largest and smallest values Response Feedback: Correct! The range is given by the difference between the largest and smallest values. Selected Answer: At least 75% Response Feedback: Correct! According to Chebyshev's Theorem, at least 75% of values in a large data set will be within two standard deviations of the mean. Selected Answer: equal to zero Response Feedback: Correct! The sum of deviations from the arithmetic mean is always zero. Selected Answer: Sharp e • Question 18 1 out of 1 points The ratio provides a metric to compare the amount of compensation an investor receives with regard to the overall risk being assumed by holding said investment. • Question 17 1 out of 1 points The sum of deviations from the arithmetic mean for the set of numerical data will be . • Question 16 1 out of 1 points According to Chebyshev's Theorem, approximately what percentage of values in a large data set will be within two standard deviations of the mean? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Response Feedback: Correct! One measure of reward-to-variability is the Sharpe ratio, which provides a metric to compare the amount of compensation an investor receives with regard to the overall risk being assumed by holding said investment. • Question 19 1 out of 1 points MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 POINTS MISSED NUMBER OF STUDENTS 0-under 10 2 10-under 20 4 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 20-under 30 10 30-under 40 8 40-under 50 6 What is the mean number of points missed? Selected 2 Answer: 9 Response Feedback: Correct! Using the formula to compute the mean for grouped data, the mean is found to be 29. • Question 3 The most appropriate measure of central tendency for ordinal data is the . 1 out of 1 points Selected Answer: medi an Response Feedback: Correct! The median is appropriately used with ordinal- level data. Selected 8 Answer: 6 Response Feedback: Correct! The median is the middle value in an ordered array of numbers, in this case, 86. • Question 5 For the mean to be used appropriately, the data must be at least level. 1 out of 1 points Selected Answer: interv al Response Feedback: • Question 4 1 out of 1 points A statistics student made the following grades on seven tests: 76, 82, 92, 95, 79, 86, and 92. What is the median grade? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 C o r r e c t ! The mean is appropriately used with interval- or ratio- level data. • Question 6 1 out of 1 points Consider the frequency distribution shown below. Which measure of central tendency is the most appropriate? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 A statistics student made the following grades on seven tests: 76, 82, 92, 95, 79, 86, and 92. What is the mean grade? Selected 8 Answer: 6 Response Feedback: Correct! The mean is computed by the sum of the scores divided by the total number of scores, which is equal to 86. • Question 11 The second quartile is equal to the: 1 out of 1 points Selected Answer: media n Response Feedback: Correct! The second quartile is equal to the 50th percentile, which is the median. • Question 12 0 out of 1 points The frequency distribution table below shows the number of machines that produced a given number of defective products during the last semester. What is the median number of defective products? Selected Answer: DEFECTIVE PRODUCTS NUMBER OF MACHINES 0-under 2 5 2-under 4 4 4-under 6 4 6-under 8 5 8-under 10 2 4.6 7 Response Feedback: Incorrect. Using the formula to compute the median for grouped data, the media is found to be 4.25. Selected Answer: • Question 13 1 out of 1 points Statistical measures used to yield information about the middle parts of a group of numbers are called the measures of . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 c e ntral tendency Response Feedback: Correct! Measures of central tendency yield information about the most typical or central data elements. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • Question 14 0 out of 1 points Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system and orders an inspection of "each and every payroll voucher issued since January 1, 1993." Each payroll voucher was inspected and the following frequency distribution was compiled. ERRORS PER VOUCHER NUMBER OF VOUCHERS 0-under 2 500 2-under 4 400 4-under 6 300 6-under 8 200 8-under 10 100 The median number of errors per voucher is . Selected 3 Answer: Response Feedback: Incorrect. Using the formula for the median of grouped data, the median number of errors is 3.25. • Question 15 When data are , the mean, median, and mode all have the same value. 1 out of 1 points Selected Answer: perfectly normally distributed Response Feedback: Correct! When data are perfectly normally distributed, mean = median = mode. Selected Answer: mea n Response Feedback: Correct! Outliers, particularly extreme outliers, can exert a substantial influence on the mean. • Question 16 1 out of 1 points The measure of central tendency that is particularly susceptible to the influence of outliers is the . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • 1.3.4 • Question 1 1 out of 1 points The United Nations Development Programme website provides comparative data by country on key metrics, such as life expectancy over time. The chart below shows data on life expectancy over time in the United States. Which of the following statements are NOT TRUE based on the scatterplot of U.S. Life Expectancy over time? Selected Answer: Response Feedback: U.S. citizens had a shorter life expectancy in 2010 than they did in in 2008. Correct! Life expectancy has increased throughout the period shown, and life expectancy in 2010 was longer than that in 2008. The total number of walk-in customers included in the study was . Selected 45 Answer: 0 Response Feedback: Correct! Because this is a cumulative frequency chart, looking at the y-value for the last point gives the total number - in this case, 450. • Question 3 Suppose 1000 commuters in New York City submit their typical daily commute time to a 1 out of 1 points transportation research company which then organizes the data into the histogram shown below. Study the histogram and then answer the questions. • Question 2 1 out of 1 points The staff of Mr. Wayne Wertz, VP of Operations at Portland Peoples Bank, prepared a cumulative frequency ogive of waiting time for walk-in customers. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Most commuters have commute times between minutes. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected Answer: 30 and 50 Response Feedback: Correct! The majority of commuters have commute times from 30 to 50 minutes. Selected Answer: Cracked Trace Response Feedback: Correct! The most common cause of failure is cracked trace. • Question 4 1 out of 1 points According to the following graphic, the most common cause of PCB Failures is a . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 On Friday, the approximate number of sales transactions between $150 and $175 was . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected 7 Answer: 5 Response Feedback: Correct! The bar for transactions between $150 and $175 indicates that about 75 such sales were made. • Question 7 A can be described as a type of vertical bar chart. 1 out of 1 points Selected Answer: histogra m Response Feedback: Correct! A histogram presents data in vertical bars. • Question 8 A(n) is useful when the decision maker needs to see running totals. 1 out of 1 points Selected Answer: ogiv e Response Feedback: Correct! An ogive is a cumulative frequency polygon and is especially useful when the decision maker needs to see running totals. Selected Answer: Pie chart Response Feedback: Correct! A pie chart is a circular depiction of data where the area of the whole pie represents 100% of the data and slices of the pie represent a percentage breakdown of the sublevels. Selected Answer: scatter plot Response Feedback: Correct! A scatter plot is a two-dimensional graph plot of pairs of points from two numerical variables and is often used to examine possible relationships between two variables. • Question 10 1 out of 1 points A is a two-dimensional graph plot of data containing pairs of observations on two numerical variables. • Question 9 1 out of 1 points Which chart is a circular depiction of data illustrating the percentage breakdown of the sublevels? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • Question 11 1 out of 1 points The 2010 and 2012 market share data of three competitors (Alston, Baren, and Clemson) in an oligopolistic industry are presented in the following pie charts. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Response Feedback: Correct! According to the infographic, sales from e-commerce for U.S. retailers were up 14% from 2014 in 2015. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • Question 15 1 out of 1 points The top music genres for 2014 are Rock, R&B/ Hip Hop, Pop, and Country. These and other music genres, along with the number of albums sold or downloaded in each category (in millions), are shown here. GENRE ALBUMS SOLD Rock 138.2 R&B/ Hip Hop 82.0 Pop 71.0 Country 53.4 Dance/EDM 16.2 Christian/Gospel 14.8 Holiday/Seasonal 12.4 Latin 12.4 Which type of visual presentation would help emphasize the RELATIVE contributions of the genres to album sales? Selected Answer: pie chart Response Feedback: Correct! By dividing the total album sales in “pie slices” representing the amount for each genre, the relative contribution of each genre is shown in a pie chart. Selected Answer: [None Given] Response Feedback: Incorrect. At its core, data visualization is a visual representation of data – statistics made more understandable at a glance. • Question 17 Infographics use data summaries like graphs to . 0 out of 1 points Selected Answer: make statistics more understandable Response Feedback: Incorrect. Infographics often tell a scrolling story by providing tidbits of data in a way that supports a specific idea or strategy. Data visualization is most useful in situations where the number of data points is far too large to artistically showcase in a way that’s • Question 16 0 out of 1 points According to the article “How to Tell a Powerful Story with Data Visualization,” the goal of data visualization is to . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 easy for people to “wrap their heads around. ” MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected Answer: up 1.9% Response Feedback: Correct! According to the infographic, sales from e-commerce for U.S. wholesalers were up 1.9% from 2014 in 2015. • 1.2.4 • Question 1 Consider the following frequency distribution: CLASS INTERVAL FREQUENCY 10-under 20 15 20-under 30 25 30-under 40 10 What is the midpoint of the first class? 1 out of 1 points Selected 1 Answer: 5 Response Feedback: Correct! The midpoint is the average of the endpoints, in this case, the average of 10 and 20, which is equal to 15. CLASS INTERVAL FREQUENCY 20-under 40 30 40-under 60 45 60-under 80 80 80-under 100 45 What is the relative frequency of the second class? Selected Answer: 0.22 5 Response Feedback: Correct! Relative frequency is the proportion of the total frequency that is in any given class interval in a frequency distribution, or, in this case 45/200 = 0.225. • Question 2 1 out of 1 points The number of phone calls arriving at a switchboard each hour has been recorded, and the following frequency distribution has been developed. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Data that have been organized into a frequency distribution are called data. • Question 3 1 out of 1 points MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected Answer: groupe d Response Feedback: Correct! Data that have been organized into a frequency distribution are called grouped data. • Question 4 0 out of 1 points Suppose a market survey of 200 consumers was conducted to determine the likelihood of each consumer purchasing a new computer next year. The data were collected based on the age of the consumer and are shown below: AGE BRACKET INTEND TO PURCHASE COMPUTER WITHIN 1 YEAR <25 54 25-34 57 35-44 49 45-54 29 >55 11 TOTAL 200 Using the table above, which of the following statements is true? Selected Answer: Response Feedback: None of the above statements are true. Incorrect. Computing the relative frequency for each of the intervals shows that individuals between 25 and 34 are most likely to purchase a new computer next year. • Question 5 1 out of 1 points A person has decided to construct a frequency distribution for a set of data containing 60 numbers. The lowest number is 23 and the highest number is 68. If five classes are used, the class width should be approximately . MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected Answer: 2.92 hours Response Feedback: Correct! Women is the U.S. civilian population spend an average of 2.92 hours per day on work and work-related activities; men spend 4.18 hours; and the average for men and women is 3.53 hours. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Table A. States with unemployment rates significantly different from that of the US, April 2017, seasonally adjusted GEOGRAPHIC UNIT RATE (p) United States (1) 4.4 Alabama 5.4 Alaska 6.6 Arkansas 3.5 California 4.8 Colorado 2.3 District of Columbia 5.9 Georgia 5.0 Hawaii 2.7 Idaho 3.4 Indiana 3.6 Iowa 3.1 Kansas 3.7 Louisiana 5.8 Maine 3.0 Minnesota 3.8 Montana 3.8 Nebraska 3.0 New Hampshire 2.8 New Mexico 6.7 North Dakota 2.7 Oregon 3.7 South Dakota 2.8 Texas 5.0 • Question 8 1 out of 1 points In the table shown below, which state has an unemployment rate that is significantly higher than that in the United States as a whole? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Utah 3.1 Vermont 3.1 Virginia 3.8 Wisconsin 3.2 (1) Data are not preliminary MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 60-under 70 10 70-under 80 20 80-under 90 10 90-under 100 5 Approximately what percent of students got more than 70? Selected 6 Answer: 4 Response Feedback: Correct! Of the total of 55 students, 35, or 64% had scores of from 70 to 100. • Question 12 1 out of 1 points Suppose a market survey of 200 consumers was conducted to determine the likelihood of each consumer purchasing a new computer next year. The data were collected based on the income level of the consumer and are shown below: INCOME LEVEL INTENT TO PURCHASE COMPUTER WITHIN 1 YEAR <$30K 40 $30K - $59K 43 $60K - $89K 38 $90 - $119K 40 $120K or more 39 TOTAL 200 Using the table above, which of the following statements is true? Selected Answer: MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Response Feedback: Income does not seem to be related to likelihood of purchasing a computer next year. Correct! The relative frequencies for each interval are quite similar, suggesting that income is not related to the likelihood of purchasing a computer during the next year. • Question 13 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 The difference between the largest and smallest numbers of a measure is referred to as the . Selected Answer: rang e Response Feedback: Correct! The range often is defined as the difference between the largest and smallest numbers. SALARY ($1,000s) NUMBER OF GRADUATES 28-under 31 - 31-under 35 - 34-under 37 - 39-under 40 - 40-under 50 - Before data was collected, someone questioned the validity of this arrangement. Which of the following represents a problem with this set of intervals? Selected Answer: Some salaries would fall into two different intervals. Response Feedback: Correct! Intervals should not overlap, yet some salaries, like $34,000, would fall into two intervals. • Question 15 The midpoint is calculated as the average of the . 1 out of 1 points Selected Answer: two class endpoints Response Feedback: Correct! The midpoint is the value halfway across the class interval and can be calculated as the average of the two class endpoints. • Question 16 An instructor made a frequency table of the scores his students got on a test. 1 out of 1 points • Question 14 1 out of 1 points The following class intervals for a frequency distribution were developed to provide information regarding the starting salaries for students graduating from a particular school: 1 out of 1 points MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Purchasing goods and services 0.75 0.60 0.88 Caring for and helping household members 0.51 0.31 0.70 Caring for and helping non-household members 0.19 0.16 0.21 Working and work-related activities 3.53 4.18 2.92 Educational activities 0.46 0.48 0.45 Organizational, civic, and religious activities 0.33 0.29 0.37 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Leisure and sports 5.21 5.58 4.86 Telephone calls, mail, and e-mail 0.16 0.12 0.20 Other activities, not elsewhere classified 0.19 0.19 0.20 Selected Answer: 9.64 hours Response Feedback: Correct! The average for the civilian population as a whole is 9.64 hours; for men is 9.43 hours and for women is 9.85 hours. GEOGRAPHIC UNIT RATE (p) United States (1) 4.4 Alabama 5.4 Alaska 6.6 Arkansas 3.5 California 4.8 Colorado 2.3 District of Columbia 5.9 Georgia 5.0 Hawaii 2.7 Idaho 3.4 Indiana 3.6 Iowa 3.1 Kansas 3.7 Louisiana 5.8 Maine 3.0 Minnesota 3.8 Montana 3.8 Nebraska 3.0 New Hampshire 2.8 • Question 19 1 out of 1 points In the table shown below, which state has an unemployment rate that is significantly lower than that in the United States as a whole? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 New Mexico 6.7 North Dakota 2.7 Oregon 3.7 South Dakota 2.8 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Robert Gerst, a Calgary-based statistician who specializes in employee surveys, argues that managers may misuse satisfaction surveys when they define importance of results in terms of . Selected Answer: statistical significance Response Feedback: Correct! Gerst distinguished between statistical significance and practical importance and notes that defining importance in terms of statistical significance is a flawed approach that will frequently lead to incorrect answers. Selected Answer: Ratio level Response Feedback: Correct! Ratio scales have meaningful linear distances and an absolute zero. Selected Answer: inferential statistics Response Feedback: Correct! Researchers use inferential statistics to study the impact of advertising on market segments. • Question 5 0.5 out of 0.5 points Researchers often wish to measure consumers' satisfaction toward certain products and might ask consumers to specify their feelings as either "very dissatisfied," "somewhat dissatisfied," "somewhat satisfied," or "very satisfied." This is an example of what level of data? Selected Answer: ordin al Response Feedback: Correct! Ratings of satisfaction are considered ordinal data. • Question 4 0.5 out of 0.5 points To study the impact of advertising on various market segments, market researchers are most likely to use . • Question 3 0.5 out of 0.5 points Which scale of measurement has these two properties: Linear distance is meaningful and the location of origin (or zero point) is absolute (or natural)? MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 • Question 6 0.5 out of 0.5 points Data sets that are repeatedly collected at specific time intervals are most accurately called data. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected Answer: time series Response Feedback: Correct! Data sets that are repeatedly collected at specific time intervals are called time series data. • Question 7 0 out of 0.5 points A university surveys 10% of its graduates from the past decade to learn about their employment experiences. In a brochure used to recruit new students, the university states that 83% of its graduates find employment in their field within two years of graduation. By using data from a sample of graduates to come to conclusions about all graduates, the authors used statistics. Selected Answer: parametr ic Response Feedback: Incorrect. If a researcher gathers data from a sample and uses the statistics generated to reach conclusions about the population from which the sample was taken, the statistics are inferential statistics. • Question 8 0 out of 0.5 points Researchers want to study whether women or men are more adept at remembering where they leave misplaced items (such as credit cards, phone, etc.). They collected 500 women and men to participate in a study in which each person placed 10 common objects in a 12-room “virtual” house represented on a computer screen. 30 minutes later, the participants were asked to recall where they put each of the items, and for each subject, the answer was recorded as “yes” or “no.” In this study, the researchers used: Selected Answer: descriptive statistics Response Feedback: Incorrect. In this study the researchers used inferential statistics. • Question 9 0.5 out of 0.5 points Researchers often wish to know consumer preferences about the appearance of products and might ask consumers to specify their favorite color for an appliance, such as red, blue, yellow, or purple. This is an example of what level of data? Selected Answer: nomin al Response Feedback: Correct! Favorite color would be an example of a nominal level of data. • Question 10 Nominal and MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 d e scripti ve Response Feedback: Correct! The video uses descriptive statistics to paint a picture of the world today and show how it has changed. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Selected Answer: they can be a useful source of feedback Response Feedback: Correct! Gerst asserts that employee satisfaction and engagement surveys provide important feedback to managers. Selected Answer: uni t Response Feedback: Incorrect. Measurement refers to the use of a standard process to assign numbers to particular attributes or characteristics of a variable. Selected Answer: a sample Response Feedback: Correct! A sample is a subset of the population on which data is collected for purposes of statistical analysis. • Question 19 0.5 out of 0.5 points A company wants to learn the customers’ purchase habits of buying certain products and did a survey of 1000 customers who were chosen at random. They asked consumers about when they purchased the products in the past month. The data in this example are best described as: Selected Answer: what the consumers said about when they purchased the products • Question 18 0.5 out of 0.5 points A small portion or a subset of the population on which data are collected for conducting statistical analysis is called . • Question 17 0 out of 0.5 points Measurement, like the measurement of employee satisfaction, is best described as a(n) . • Question 16 0.5 out of 0.5 points Gerst’s attitudes towards employee satisfaction and engagement surveys can best be summarized as: MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Response Feedback: Correct! Data refer to the recorded measurements; in this case, what the consumers said about when they purchased the products. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 What value is shown by the left side of the box (indicated by the arrow) in a box-and-whisker plot? Selected Answer: the lower quartile Response Feedback: Correct! The left side of the box shows the lower quartile. • Question 5 1 out of 1 points Karen Merlott, VP for Strategic Planning at a recruitment firm, recently conducted a survey to determine customer satisfaction with job placement. She distributed the survey to 45 of the most recently placed executives. Two items on a survey questionnaire asked them to rate the importance of “initial interview process” and “satisfaction of final job placement” on a scale of 1 to 10 (with 1 meaning “not important” and 10 meaning “highly important”). Her staff assembled the following statistics on these two items. Initial Interview Process Satisfaction of Final Job Placement Mean 8.5 7.5 Median 9 8.5 Mode 9.0 9 Standard Deviation 1.0 1.5 MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 What can Karen conclude from these statistics? Selected Answer: The Satisfaction of Final Job Placement distribution is negatively skewed. Response Feedback: Correct! The Satisfaction of Final Job Placement distribution is negatively skewed, as MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 the mean is less than the median which is less than the mode. Selected Answer: platykurt ic Response Feedback: Incorrect. A graph that is mesokurtic has fatter tails than a standard normal distribution and has a slightly lower peak. • Question 7 Measures of the of the distribution include skewness and kurtosis. 1 out of 1 points Selected Answer: shap e Response Feedback: Correct! Skewness and kurtosis are both measures of the shape of distributions. • Question 8 1 out of 1 points David Desreumaux, VP of Human Resources of American First Banks (AFB), is reviewing the employee training programs of AFB banks. His staff compiled the following table of regional statistics on teller training hours. Southeast Region Southwest Region Mean 20 28 Median 20 20 Mode 20 21 Standard Deviation 5 7 What can David conclude from these statistics? • Question 6 0 out of 1 points A distribution is similar to a normal distribution but has a lower peak and fatter tails. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Response Feedback: Incorrect. The distribution is skewed to the left. • Question 11 1 out of 1 points MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 The following box and whisker plot was constructed for the age of accounts receivable. The box and whisker plot reveals that the accounts receivable ages are . Selected Answer: skewed to the right Response Feedback: Correct! The location of the median in the box indicates the distribution is skewed to the right. • Question 12 The following box and whisker plot was constructed for the age of accounts receivable. The box and whisker plot reveals that the accounts receivable ages are . 1 out of 1 points Selected Answer: skewed to the left Response Feedback: Correct! The location of the median in the box shows that the distribution is skewed to the left. • Question 13 0 out of 1 points A sample of 117 records of the selling price (in dollars) of homes from Feb. 15 to April 30, 2013, was taken from the files maintained by the Albuquerque Board of Realtors. The following are summary statistics for the selling prices. MS 1023 EXAM PREPARATION BUSINESS STATISTICS EXAM STUDY GUIDE 2023 Variable N Mean Minimu m Q1 Media n Q3 Maximu m Prices 117 54,00 0 54,000 77,65 0 96,000 121,75 0 215,000 From this we can conclude that: