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Date/Time May 22, 2010 at 8:58 AM (EDT)

Submitted:

Business decisions may be made by interpreting facts derived from statistical analysis of
1. the variables of the process associated with the decision or by applying instinct about or
insight into the business process. When might a decision be made by these latter more
"unstructured" techniques?

Your When variables associated with the business process cannot be measured.
Answer:

CORRECT: Statistical analysis depends on measures of variables.

Managers study the number of days per month over the last year that employees in the
2. payroll department called in sick to determine the averages they can expect next year.
Collecting the data and determining the averages last year is an example of what type of
statistics? Determining the averages they can expect next year is an example of what type
of statistics?

Your Answer: Inferential statistics; descriptive statistics.

Correct Descriptive statistics; inferential statistics.

Answer:

INCORRECT: Calculations on known data is part of descriptive statistics while predictions

based on statistics are part of inferential statistics.

By what degree might a variable without a clear operational definition affect statistics
3. performed on it?

Your Answer: There would likely be little or no effect.

 Correct Results could be totally different.
Answer:

INCORRECT: This might be one answer, but even a little effect might make a big difference
depending on the variable.

The grades that a random sampling of students in the psychology degree program received
4. over the last decade of "Abnormal Psychology" classes are an example of what statistical
concept?

Your The grades are an example of a sample.

Answer:

CORRECT: The grades (that is the values of the grades themselves) constitute a sample of
the grades of the student population.

How might you obtain a statistic, that is a numerical value, from a categorical variable
5. whose only possible values are "Yes" or "No"?

At best you could only obtain an ordinal measure or ranking of the

Your Answer:
responses if you count one response over the other.
You could count the number of "Yes" and "No" responses in the
Correct
Answer: sample.

INCORRECT: Even if you assigned an order to the responses, this would not constitute a
numerical measure of them.

Your textbook lists four categories for using statistics for Rational Decision Making: (1)
6. Presenting and Describing Information, (2) Drawing Conclusions and Populations Based on
Sample Information, (3) Improving Processes, and (4) Making Reliable Forecasts of
Variables of Interest. Which category do you think represents the area of statistics called
inferential statistics?

The category entitled "Making Reliable Forecasts of Variables of

Your Answer:
Interest".
The category entitled "Drawing Conclusions about Populations, Based
Correct
Answer: Only on Sample Information".

INCORRECT: This category describes the techniques of regression analysis and time-series
forecasting.
 What statistical task performed by the U.S. government a century ago led to the
7. development of computers?

Your Analyzing the population census.

Answer:

CORRECT: Yes, this task led to the development of electronic tabulating machines that
developed later into the more general electronic computer.

What method is used to sample a population so that it is representative of the population?

8.

Your Answer: Only the first half of a population is selected.

Correct Samples are chosen at random from the population.

Answer:

INCORRECT: The first half of a population might have a systematic difference from the
elements of the last half an therefore might not represent the population as a whole.

How might a biased source distort the statistics of a population?

9.
A biased source might yield samples that are not representative of the
Your
Answer: population.

CORRECT: Statistics about a population are generally inferred from samples from it.
Samples from biased sources may not represent their populations and statistics from them
may be distortions of their population's statistics.

A company publishes statistics on its quarterly earnings for its stockholders to see. Is this
10 data primary or secondary source data?
.
The source is primary for the stockholders and secondary for the
Your Answer:
company.
The source is primary for the company and secondary for the
Correct
Answer: stockholders.

INCORRECT: The company created the data so it is primary for them.

Which of the following methods is not mentioned as one way to obtain primary source
11 data?
.
 Your Looking in professional magazines.
Answer:

CORRECT: When primary source data is reported it becomes secondary source data.

If you have a digital scale in your home that only reads in integers, is your weight a
12 discrete variable?
.
Your weight is still a continuous variable because it is really a precise
Your
Answer: number, regardless of the capability to weigh it.

CORRECT: The variable is intrinsically continuous regardless of how it is measured.

What would be an example of a tiered observation if you are measuring temperature?

13
.
Your Answer: Only considering those temperatures in a certain tier.

Correct Measurements rounded off to the nearest degree.

Answer:

INCORRECT: Tiers are a result of the accuracy of the measurement, not a restriction of the
range of temperature measurements.

If you had a survey where respondents answered on a scale from 0-5, would this be an
14 interval or a ratio scale?
.
Your Answer: Ratio scale.

Correct It depends on what a score of 0 means.

Answer:

INCORRECT: If a "0" response can be considered a true zero point then this is an interval
scale, else it is a ratio scale.

Look at the survey questions that Good Tunes sent to their customers. What kind of
15 variables and scales of measurement do the questions concerning overall service and
. quality of the items purchased represent?

Your Answer: Continuous variables measured on a ratio scale.

Correct Categorical variables measured on an ordinal scale.

 Answer:

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Basic Business Statistics: Concepts and Summary of Results

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Chapter 2 > Self-Study Quizzes >
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Date/Time May 22, 2010 at 9:24 AM (EDT)

Submitted:

What is the purpose of a summary table?

1.

Your Answer: To sum the values of responses to a survey.

Correct To see differences between or among categories.

Answer:

INCORRECT. Although a summary table may sum the values associated with each category,
this is not necessary. The principal purpose is so the analyst can see differences between or
among categories.

You have a summary table and a simple pie chart and bar chart (like the ones in the textbook)
2. showing reasons for shopping for holiday gifts online. How could you enhance the bar chart to
give you both visual as well as actual information?

The bar chart in accompaniment with the summary table is the best way
Your Answer:
to show the data.

Correct Add values to the bar chart like on the pie chart.
Answer:

INCORRECT. While this solution would solve the underlying aspects of the problem to show the
actual values, it does not change the bar chart itself. An easier solution would be to add values
to the bar chart.
3.
The two bar charts above show different ways to depict the SARS data for four areas of China
in which most cases were found in April-May 2003. Which chart might be used if (1) the value
for each date or (2) the total number of SARS cases was the most important element to be
emphasized?

It is easier to determine actual values in the chart on the left and total
Your Answer:
cases in the chart on the right.
It is easier to determine actual values in the chart on the left and total
Correct
Answer: cases in the chart on the right.

INCORRECT. Was this what you found? Perhaps for you this is correct. However, it may be
more difficult to do this since the only way to determine values in the chart on the left for
three of the areas is to subtract what appears to be the value from the ones below it and the
only way to determine the total cases in the right chart is to sum the values of the areas.
4.

Look at the data in the summary table for SARS cases in four areas in China between 4/25-
5/15/2003. The Pareto diagram above reflects data for which date?

Your May 13, 2003

Answer:

CORRECT. The data which may be easiest to notice on a chart is the number of SARS cases in
Beijing. On the Pareto chart the value for Beijing is about 2300, which matches the number of
SARS cases on that date. In addition, this is the only choice of dates where the value for
"other areas" could have been calculated from the given data in both tables.

It might be said that the stem-and-leaf display is really a quick and easy way of creating a
5. rudimentary chart or diagram for numerical data. If so, which chart or diagram used to
describe categorical data does it most closely resemble - a bar chart? a pie chart? a Pareto
diagram?

Your Answer: The stem-and-leaf display most closely resembles a rudimentary pie chart.

Correct The stem-and-leaf display most closely resembles a rudimentary bar chart.
Answer:

INCORRECT. Of the three choices, the stem-and-leaf display least closely resembles a pie
chart and most closely resembles the bar chart.

Suppose the data for a stem-and-leave display was the reaction time in seconds for a student
6. to notice another student making a grab for one of their french fries and looked like this: 0.54
 0.48 0.43 0.55 0.49 0.66 0.35 0.49 0.63 0.55 0.73 0.85 0.61 0.48 0.59. Could you construct
a stem-and-leaf display from this data? What does this say about the purpose of the stem-
and-leaf display?

You cannot create a stem-and-leaf display from this data because it does
Your Answer:
not have units for the stem part.

Correct Use 0.3-0.8 for the stem part.

Answer:

INCORRECT. It is not necessary for the data to have whole units, only to be divided into equal
decimal parts, in this case into divisions of 0.1.

7.

The rule of thumb for creating a frequency distribution is to divide the data into 5-15 class
groupings. While larger numbers of values allow for larger numbers of groups, how do you
know exactly how many groups to use?

Select the number of groupings that gives definition to the "shape" of the
Your
Answer: data.

CORRECT. There is no definitive way to select exactly how many groups to use. However, by
graphing different numbers of groupings, certain characteristics of the data may be revealed
while lesser numbers will not provide enough data and too many groupings can disperse the
data too much.
 An interval of $10.00 is chosen for depicting the price per person of a meal at restaurants
8. around the city. What differences might you see in a histogram if you chose a scale of $5,
$15, $25... rather than $10, $20, $30...?

Your You might see shifts in data concentration.

Answer:

CORRECT. Choosing different class boundaries might result in shifts in data concentration
which might make the data look different. Observe the histograms below.

9.

The table above shows the frequency and relative frequencies for 50 samples in each of 7
groups of restaurant meal prices covering the range of data. How was the value of 0.36
obtained for the relative frequency of meals costing $32 but less than $40?

The number of samples is 50, so divide 18 by 50.

Your
Answer:

CORRECT. The relative frequency (or proportion) is obtained by dividing the value (18) by the
number of elements (50).
1
0.

Which of the above histograms represents the graph of city restaurant meal prices with an
interval of $8?

Your Answer: Neither histogram.

Correct Both histograms.

Answer:

INCORRECT. If you compare the values in the X axis scales on either histogram, you will see
they are $8 apart so both have an interval of $8.
1
1.

Without knowing anything about the data or the scales of the graphs, determine which
histogram above represents Data Set 1 depicted in the cumulative percentage polygon.

You cannot determine which histogram represents Data Set 1 without

Your Answer:
seeing the scale on the graphs.

Correct The histogram on the left represents Data Set 1.

Answer:

INCORRECT. The scale is not necessary in this case. The top graph is cumulative so Data Set 1
would be represented by the histogram whose values rise more slowly, which is the histogram
on the left.
1
2.
Observe the graph data from the eruptions of the "Old Faithful" geyser in Yellowstone National
Park. Determine the interval between eruptions within plus or minus 10 minutes given that the
last eruption was 120 seconds long.

This graph alone is not sufficient to determine the eruption given a specific
Your
Answer: duration.

CORRECT. The three groupings of data show something more is going on that this graph alone
cannot depict. A time-series plot may be more revealing.
1
3.

Given both the scatterplot and time-series plot for the "Old Faithful" eruption data, what is the
probable interval to the next eruption if the duration of the last eruption was less than 170
seconds?

Your Answer: Between 50-120 minutes.

Correct Between 50-75 minutes.

Answer:

INCORRECT. This is a safe answer, but the tourists at Yellowstone National Park would
probably like a better answer if they are going to continue to give the geyser its name of "Old
Faithful". A better answer is 50-70 minutes based on the time-series plot.

1
4.

In the above figure of wine imports into the United States, what three guidelines for
developing good graphs have not been followed?

Your (blank)
Answer:
 Considering the various types of tables and charts introduced in this chapter, which table,
1 chart, diagram or plot would you use to depict categorical data for two variables in a visual
5. format?

Your Answer: A contingency table.

Correct A side-by-side bar chart.

Answer:

INCORRECT. While a contingency table is used to depict categorical data for two variables, a
side-by-side bar chart is used to depict this data visually.

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Your Results Print this page

for: "True or
False"

Basic Business Statistics: Concepts and Summary of Results

Site Title:
Applications
Basic Business Statistics: Concepts and 47% Correct of 15 Scored items:
Book Title:
Applications, 10/e
7 Correct:
47%
Berenson
Book Author:
8 Incorrect:
53%
Chapter 2 > Self-Study Quizzes > True
Location on
or False
Site: More information about scoring

Date/Time May 22, 2010 at 9:38 AM (EDT)

Submitted:

The summary table can be used for numerical as well as categorical data.
1.

Your True
Answer:

CORRECT. What is a table? A table is a tabularly arranged association of variable(s) with

value(s) or value(s) with related value(s). Numerical data may be arranged in an array, a
stem-and-leaf diagram (which is really a tabular relationship) or other depiction. A stem-and-
leaf diagram is also similar to how tiered observations of continuous (numerical) variables
would be presented.

A summary table shows the probability, sums of categorical responses or proportion of items
2. in a set of categories.

Your False
Answer:

CORRECT. Technically the summary table shows the frequency, amount or percentage of
items in a set of categories. However, the meaning of "number" here is the sum of responses
in each category. If you look at the meaning of "frequency" or "percentage" compared with
"probability" and "proportion", a limited case could be made for the statement.
3.
 The bar chart depicted above correctly reflects the data for the cumulative number of SARS
cases in May of 2003 (see summary table for data).

Your (blank)
Answer:

A pie chart is probably the best method to depict the data in either of the summary tables on
4. SARS cases in China.

Your Answer: True

Correct False
Answer:

INCORRECT. Were you able to create an intelligible pie chart from all the data? A pie chart is
 probably not the best way to depict all the data in either of the SARS summary tables because
there is too much data and the resulting pie chart would be confusing (a table or bar chart is
best). However, a pie chart would be an appropriate way to compare data on any one date or
perhaps in any one province. See pie charts below. The one on the left shows the province
data for 5/15 while the chart on the right shows the data for Beijing.

Does the data for the SARS cases in four areas in China exhibit characteristics of the Pareto
5. principle?

Your Answer: False

Correct True
Answer:

INCORRECT. The Pareto Principle applies to data where a majority of items in a set of data
(such as SARS cases in China) occur in a small number of categories (on 5/15/2003, 75%
occur in two areas) and the other observations are spread out over a large number of
categories (most likely a number of areas in China had some, but much fewer, reported cases
than in the four areas in the summary table).
 Two methods described for organizing large numbers of numerical values are an ordered array
6. of the values or a stem-and-leaf display. These methods can also be applied to sets of any
number of numerical values.

Your Answer: False

Correct True
Answer:

INCORRECT. While both of these methods are appropriate for large numbers of numerical
values, they can be used for any number of values.

When you apply the formula "width of interval" = "range" / "number of desired class
7. grouping" to determine the width of an interval for a set of data, the interval for 12 groupings
is calculated as $4.10. The interval should probably be rounded off to $4.00 or even $5.00.

Your Answer: False

Correct True
Answer:

INCORRECT. You should choose an interval width that simplifies reading and interpretation. If
there were some special significance associated with $4.10 over $4.00 or the range of data
were a bit tighter, then $4.10 might be the best choice here. However, here the range of the
data is sufficient to where either $4.00 (yielding 11 groups) or, better yet, $5.00 (yielding 13
groups) would be preferable to $4.10.

The frequency distribution table is the best way to compare two or more set of data with
8. different sample sizes.

Your False
Answer:

CORRECT. While the "shape" of the data can be seen in a frequency distribution table, it may
be more difficult to compare two or more sets of data if the number of elements in each group
is very different. A better comparison can be made with the relative frequency or percentage
distribution is more appropriate.

The cumulative percentage distribution is a method for presenting information about the
9. percentage of values more than a certain value.

Your True
Answer:

CORRECT. While the textbook describes the cumulative percentage distribution as a way to
present information about the percentage of values less than a certain value, the converse is
 also true.

The shape of a graph of relative frequency distribution reveals more information than that of a
10 graph of frequency distribution.
.
Your False
Answer:

CORRECT. Since relative frequency is determined by dividing the frequency values by the
sample size, the shape of the graphed data will be identical for the same set of data. Only the
scale will change.

One way to compare two sets of data is to create relative frequency or percentage
11 distributions. Another recommended method is to superimpose their histograms.
.
Your False
Answer:

CORRECT. The recommended method is to create percentage polygons of the data.

Superimposing vertical bars of one histogram over another may cause difficulties in
interpretation, particularly if the histogram is of frequency rather than relative frequency data.

The side-by-side bar chart would be more appropriate for the SARS data than for the data on
12 restaurant meal prices.
.
Your Answer: False

Correct True
Answer:

INCORRECT. Contingency tables and their visual representation as side-by-side bar charts are
methods to represent categorical variables. The SARS variables (Guangdong, Beijing, etc.) are
categorical variables while restaurant prices are numerical.
13
.
The graph above of 100 elements of data from the eruptions of the "Old Faithful" geyser in
Yellowstone National Park is a time-series plot because the scale is in terms of time.

Your Answer: True

Correct False
Answer:

INCORRECT. A time-series plot is constructed by showing the value of a variable or variables

over a period of time, not just having time as a variable.
14
.

The time-series plot above shows the interval between, and duration of, eruptions of "Old
Faithful" over a period of 100 eruptions. This plot does not add any further information to the
scatterplot of the data.

Your False
Answer:

CORRECT. The time-series plot and data table show that nearly every time the duration of an
eruption is shorter than normal (less than 170 seconds) that the interval between it and the
next eruption is also shorter than normal (less than 70 minutes). There may also be some
periodicity for when this event occurs. While the scatterplot has three recognizable groupings
of data, there is no information on when an event might occur in one grouping or the other.

15
.

The figure above is an example of misusing graphs because the vertical scale for the amount
of wine exports to the U.S. is distorted.

Your Answer: True

Correct False
 Answer:

INCORRECT. If you create a vertical scale to match the data depicted, starting with a zero
point at the bottom of the glass, you will see that the vertical scale is accurate. However, this
information is not apparent from the graph (you have to create the scale yourself, which you
should not have to do).

Your Print this page

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Basic Business Statistics: Concepts and Summary of Results

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Book Title:
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Book Author:
0 Incorrect:
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Chapter 2 > Self-Study Quizzes > True
Location on
or False
Site: More information about scoring

Date/Time May 22, 2010 at 9:45 AM (EDT)

Submitted:

The summary table can be used for numerical as well as categorical data.
1.

Your True
Answer:

CORRECT. What is a table? A table is a tabularly arranged association of variable(s) with

value(s) or value(s) with related value(s). Numerical data may be arranged in an array, a
stem-and-leaf diagram (which is really a tabular relationship) or other depiction. A stem-
and-leaf diagram is also similar to how tiered observations of continuous (numerical)
variables would be presented.

A summary table shows the probability, sums of categorical responses or proportion of

2. items in a set of categories.

Your False
Answer:

CORRECT. Technically the summary table shows the frequency, amount or percentage of
 items in a set of categories. However, the meaning of "number" here is the sum of
responses in each category. If you look at the meaning of "frequency" or "percentage"
compared with "probability" and "proportion", a limited case could be made for the
statement.

3.
 The bar chart depicted above correctly reflects the data for the cumulative number of SARS
cases in May of 2003 (see summary table for data).

Your False
Answer:

CORRECT. The bar chart above the question shows the correct dates and the correct values
associated with the SARS data in the summary table but the data is in the opposite order
and is not properly associated with the correct dates (with the exception of one date - can
you tell which one is correct?).

A pie chart is probably the best method to depict the data in either of the summary tables
4. on SARS cases in China.

Your False
Answer:

CORRECT. A pie chart is probably not the best way to depict all the data in either of the
SARS summary tables because there is too much data and the resulting pie chart would be
confusing (a table or bar chart is best). However, a pie chart would be an appropriate way
to compare data on any one date or perhaps in any one province. See pie chart below. The
one on the left shows the province data for 5/15 while the chart on the right shows the data
for Beijing.
 Does the data for the SARS cases in four areas in China exhibit characteristics of the Pareto
5. principle?

Your True
Answer:

CORRECT. The data on SARS cases in four areas in China, along with the data in the
summary table, shows that the majority of SARS cases are contained in the four areas
shown since, for example, on 5/15/2003 the total number of reported SARS cases in China
is 5163 and the total number of reported SARS cases in the four areas is about 4600. This
means over 75% of cases in China are in two areas and only about 10% are in any area
other than the four areas in the summary table.

Two methods described for organizing large numbers of numerical values are an ordered
6. array of the values or a stem-and-leaf display. These methods can also be applied to sets of
any number of numerical values.

Your True
Answer:
 CORRECT. While both of these methods are appropriate for large numbers of numerical
values, they can be used for any number of values.

When you apply the formula "width of interval" = "range" / "number of desired class
7. grouping" to determine the width of an interval for a set of data, the interval for 12
groupings is calculated as $4.10. The interval should probably be rounded off to $4.00 or
even $5.00.

Your True
Answer:

CORRECT. You should choose an interval width that simplifies reading and interpretation.
Here, with the range of the data, either $4.00 (yielding 11 groups) or, better yet, $5.00
(yielding 13 groups) would be preferable to $4.10.

The frequency distribution table is the best way to compare two or more set of data with
8. different sample sizes.

Your False
Answer:

CORRECT. While the "shape" of the data can be seen in a frequency distribution table, it
may be more difficult to compare two or more sets of data if the number of elements in
each group is very different. A better comparison can be made with the relative frequency
or percentage distribution is more appropriate.

The cumulative percentage distribution is a method for presenting information about the
9. percentage of values more than a certain value.

Your True
Answer:

CORRECT. While the textbook describes the cumulative percentage distribution as a way to
present information about the percentage of values less than a certain value, the converse
is also true.

The shape of a graph of relative frequency distribution reveals more information than that
10. of a graph of frequency distribution.

Your False
Answer:

CORRECT. Since relative frequency is determined by dividing the frequency values by the
 sample size, the shape of the graphed data will be identical for the same set of data. Only
the scale will change.

One way to compare two sets of data is to create relative frequency or percentage
11. distributions. Another recommended method is to superimpose their histograms.

Your False
Answer:

CORRECT. The recommended method is to create percentage polygons of the data.

Superimposing vertical bars of one histogram over another may cause difficulties in
interpretation, particularly if the histogram is of frequency rather than relative frequency
data.

The side-by-side bar chart would be more appropriate for the SARS data than for the data
12. on restaurant meal prices.

Your True
Answer:

CORRECT. Contingency tables and their visual representation as side-by-side bar charts are
methods to represent categorical variables. The SARS variables (Guangdong, Beijing, etc.)
are categorical variables while restaurant prices are numerical.
13.
The graph above of 100 elements of data from the eruptions of the "Old Faithful" geyser in
Yellowstone National Park is a time-series plot because the scale is in terms of time.

Your False
Answer:

CORRECT. A time-series plot is constructed by showing the value of a variable or variables

over a period of time, not just having time as a variable.
14.

The time-series plot above shows the interval between, and duration of, eruptions of "Old
Faithful" over a period of 100 eruptions. This plot does not add any further information to
the scatterplot of the data.

Your False
Answer:

CORRECT. The time-series plot and data table show that nearly every time the duration of
an eruption is shorter than normal (less than 170 seconds) that the interval between it and
the next eruption is also shorter than normal (less than 70 minutes). There may also be
some periodicity for when this event occurs. While the scatterplot has three recognizable
groupings of data, there is no information on when an event might occur in one grouping or
the other.

15.

The figure above is an example of misusing graphs because the vertical scale for the
amount of wine exports to the U.S. is distorted.

Your False
Answer:
 CORRECT. If you create a vertical scale to match the data depicted, starting with a zero
point at the bottom of the glass, you will see that the vertical scale is accurate. However,
this information is not apparent from the graph (you have to create the scale yourself) and
because the glasses are not cylindrical the volumes may distort the relative differences
between the values.

Under what circumstances might you choose to depict categorical data in one of the following methods over the
1. others: a table? a bar chart? a pie chart? A Pareto diagram?
A table may be used when displaying exact values for the data is most
important. The bar chart, pie chart and Pareto diagram are visual ways of
representing data in a table. The bar chart may be used to compare values
for categories. The pie chart is used if you wish to compare values as
portions of the whole. A Pareto diagram is used when only a few of the
categories contain the largest values.
The initial question in the application "Comparing the Performance of Mutual Funds" asked "...how
2 would you go about making a reasonable choice among the many [mutual] funds...". How did tables
. and charts help to make a reasonable choice?

Bar and pie charts showed how many of the funds were categorized as low,
average or high risk. A stem-and-leaf display and frequency, relative
frequency and cumulative percentage distribution tables showed the
distribution of returns for the funds. A histogram was also used to depict
returns and a percentage polygon and cumulative percentage polygon were
used to compare growth and value funds. A contingency table and side-by-
side bar chart were then used to show the level of risk associated with
growth and value funds. Finally a scatter diagram was used to show
relationship between expense ratio to return for a number of mutual funds.
Discuss for what reasons different business areas (accounting, finance, management and
1 marketing) might use statistics.
.
Your Answer:

Accounting might use statistics to select what items to audit

that might have values that differ the most from the others.
Finance might use statistics to track trends in costs.
Management might use statistics to determine the quality of
a service so they could improve certain aspects of it.
Marketing might use statistics to determine which pilot
project to pursue.

Discuss how statistics led to the development of computer systems and how computer systems
2 led to the development of statistics.
.
Your Answer:
 a

The tabulation of population censuses were improved with

the development of tabulating machines, which, over the
last century, led to the development of computing systems
used today (for example, Herman Hollerith's methods for
tabulating the 1890 census led to his establishing the
Tabulating Machine Company that would become
International Business Machines (IBM) in 1924).
Development of computer programs that aided in statistics
popularized the use of statistics, which in turn encouraged
the development of additional statistical methods.

Discuss the relative "weakness" of categorical variables (including measures on nominal and
3 ordinal scales), and continuous variables (including measures on interval and ratio scales) with
. respect to the type of information statistics on them yield.

Your Answer:

Statistics on categorical variables that can be expressed on

a nominal scale may only determine which value meets a
certain criteria and those that can be expressed on an
ordinal scale may at least show a ranking structure, but this
information is "weaker" than the information gained from
numerical variables which show by how much values differ,
particularly those variables that can be expressed on an
interval scale.

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