Chapter 04: Descriptive Statistics

True / False Questions

1. A data set with two values that are tied for the highest number of occurrences is called bimodal.

True False

2. The midrange is not greatly affected by outliers.

True False

3. The second quartile is the same as the median.

True False

4. A trimmed mean may be preferable to a mean when a data set has extreme values.

True False

5. One benefit of the box plot is that it clearly displays the standard deviation.

True False

6. It is inappropriate to apply the Empirical Rule to a population that is right-skewed.

True False

7. Given the data set 10, 5, 2, 6, 3, 4, 20, the median value is 5.

True False

8. Given the data set 2, 5, 10, 6, 3, the median value is 3.

True False

9. When data are right-skewed, we expect the median to be greater than the mean.

True False

10. The sum of the deviations around the mean is always zero.

True False

11. The midhinge is a robust measure of center when there are outliers.

True False

12. Chebyshev's Theorem says that at most 50 percent of the data lie within 2 standard deviations of the mean.

True False

13. Chebyshev's Theorem says that at least 95 percent of the data lie within 2 standard deviations of the mean.

True False

14. If there are 19 data values, the median will have 10 values above it and 9 below it since n is odd.

True False
15. If there are 20 data values, the median will be halfway between two data values.

True False

16. In a left-skewed distribution, we expect that the median will be greater than the mean.

True False

17. If the standard deviations of two samples are the same, so are their coefficients of variation.

True False

18. A certain health maintenance organization (HMO) examined the number of office visits by its members in the last year. This
data set would probably be skewed to the left due to low outliers.

True False

19. A certain health maintenance organization (HMO) examined the number of office visits by its members in the last year. For this
data set, the mean is probably not a very good measure of a "typical" person's office visits.

True False

20. Referring to this box plot of ice cream fat content, the median seems more "typical" of fat content than the midrange as a
measure of center. (NOTE)

True False

21. Referring to this box plot of ice cream fat content, the mean would exceed the median.

True False

22. Referring to this box plot of ice cream fat content, the skewness would be negative.

True False
23. Referring to this graph of ice cream fat content, the second quartile is about 61.

True False

24. The range as a measure of variability is very sensitive to extreme data values.

True False

25. In calculating the sample variance, the sum of the squared deviations around the mean is divided by n - 1 to avoid
underestimating the unknown population variance.

True False

26. Outliers are data values that fall beyond ±2 standard deviations from the mean.

True False

27. The Empirical Rule assumes that the distribution of data follows a normal curve.

True False

28. The Empirical Rule can be applied to any distribution, unlike Chebyshev's theorem.

True False

29. When applying the Empirical Rule to a distribution of grades, if a student scored one standard deviation below the mean, then
she would be at the 25th percentile of the distribution.

True False

30. Kurtosis cannot be judged accurately by looking at a histogram.

True False

31. A platykurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

True False

32. A leptokurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

True False

33. A positive kurtosis coefficient in Excel indicates a leptokurtic condition in a distribution.

True False

34. A sample consists of the following data: 7, 11, 12, 18, 20, 22, 43. Using the "three standard deviation" criterion, the last
observation (X = 43) would be considered an outlier.

True False
Multiple Choice Questions

35. The coefficient of variation is

A. measured on a scale from 0 to 100.

B. a unit-free statistic.

C. helpful when the sample means are zero.

D. a measure of correlation for two variables.

36. Which is not an advantage of the method of medians to find Q1 and Q3?

A. Ease of interpolating quartile

positions

B. Ease of application in small data sets

C. Intuitive definitions without complex formulas

D. Same method as Excel's =QUARTILE.EXC function.

37. Which is a characteristic of the mean as a measure of center?

A. Deviations do not sum to zero when there are extreme values.

B. It is less reliable than the mode when the data are continuous.

C. It utilizes all the information in a sample.

D. It is usually equal to the median in business

data.

38. The position of the median is:

A. n/2 in any sample.

B. n/2 if n is even.

C. n/2 if n is
odd.

D. (n + 1)/2 in any sample.

39. Which is a characteristic of the trimmed mean as a measure of center?

A. It is similar to the mean if there are offsetting high and low extremes.
 B. It is especially helpful in a small sample.

C. It does not require sorting the sample.

D. It is basically the same as the midrange.

40. Which is not a characteristic of the geometric mean as a measure of center?

A. It is similar to the mean if the data are skewed right.

B. It mitigates the effects of large data values.

C. It is useful in business data to calculate average growth rates.

D. It cannot be calculated when the data contain negative or zero values.

41. Which is not a characteristic of the standard deviation?

A. It is always the square root of the variance.

B. It is not applicable when data are continuous.

C. It can be calculated when the data contain negative or zero

values.

D. Its physical interpretation is not as easy as the MAD.

42. Chebyshev's Theorem:

A. applies to all samples.

B. applies only to samples from a normal population.

C. gives a narrower range of predictions than the Empirical Rule.

D. is based on Sturges' Rule for data classification.

43. Which of the following is not a valid description of an outlier?

A. A data value beyond the outer fences

B. A data value that is very

unusual

C. A data value that lies below Q1 or above Q3

D. A data value several standard deviations from the mean.

44. If samples are from a normal distribution with μ = 100 and σ = 10, we expect:

A. about 68 percent of the data within 90 to 110.

B. almost all the data within 80 to

120.

C. about 95 percent of the data within 70 to 130.

D. about half the data to exceed

75.

45. In a sample of 10,000 observations from a normal population, how many would you expect to lie beyond three standard
deviations of the mean?

A. None of them

B. About 27

C. About 100

D. About 127

46. The Excel formula for the standard deviation of a sample array named Data is:

A. =STDEV.S(Data).

B. =STANDEV(Data).

C. =STDEV.P(Data).

D. =SUM(Data)/(COUNT(Data)-1).

47. Which is not true of an outlier?

A. It is likely to be from a different population.

B. It suggests an error in recording the data.

C. It is best discarded to get a better

mean.

D. It is an anomaly that may tell the researcher something.

48. Estimating the mean from grouped data will tend to be most accurate when:

A. observations are distributed uniformly within classes.

B. there are few classes with wide class limits.

C. the sample is not very large and bins are wide.

 D. the standard deviation is large relative to the mean.

49. Which is true of the kurtosis of a distribution?

A. A distribution that is flatter than a normal distribution (i.e., thicker tails) is mesokurtic.

B. A distribution that is more peaked than a normal distribution (i.e., thinner tails) is
platykurtic.

C. It is risky to assess kurtosis if the sample size is less than 50.

D. The expected range of the kurtosis coefficient increases as n increases.

50. Which is true of skewness?

A. In business data, positive skewness is unusual.

B. In a negatively skewed distribution, the mean is likely to exceed the median.

C. Skewness often is evidenced by one or more outliers.

D. The expected range of Excel's skewness coefficient increases as n increases.

51. Which is not true of the Empirical Rule?

A. It applies to any
distribution.

B. It can be applied to fewer distributions than Chebyshev's Theorem.

C. It assumes that the distribution of data follows a bell-shaped, normal

curve.

D. It predicts more observations within μ ± kσ than Chebyshev's Theorem.

52. Which is a correct statement concerning the median?

A. In a left-skewed distribution, we expect that the median will exceed the mean.

B. The sum of the deviations around the median is

zero.

C. The median is an observed data value in any data set.

D. The median is halfway between Q1 and Q3 on a box plot.

53. Which statement is true?

A. With nominal data we can find the mode.

 B. Outliers distort the mean but not the standard deviation.

C. Business and economic data are rarely skewed to the right.

D. If we sample a normal population, the sample skewness coefficient is exactly 0.

54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this data set, which statement is incorrect
concerning measures of center?

A. The median is 60.00.

B. The mode is not helpful.

C. The 5 percent trimmed mean would be awkward.

D. The geometric mean is 35.05.

55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data set, which statement is incorrect
concerning measures of center?

A. The median is 70.

B. The mode is not helpful.

C. The geometric mean is useless.

D. The mean is 70.

56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which statement is incorrect?

A. The standard deviation is 29.61.

B. The data are slightly left-skewed.

C. The midrange and mean are almost the same.

D. The third quartile is 90.

57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm and the mean weight is 84 kg with a
standard deviation of 8 kg. Elmer is 170 cm tall and weighs 70 kg. It is most nearly correct to say that:

A. Elmer's weight is more unusual than his height.

B. Elmer is heavier than he is

tall.

C. Height and weight have the same degree of variation.

D. Height has more variation than weight.

58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences, which is correct?

A. John is an extreme outlier.

B. John is an outlier.

C. John is not an outlier.

D. John is in the 85th

percentile.

59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences, which is correct?

A. John is unusual but not an outlier.

B. John is an outlier.

C. John is neither unusual nor an outlier.

D. John is in the 30th

percentile.

60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population variance is:

A. 6.07.

B. 36.82.

C. 5.16.

D. 22.86.

61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median are:

A. 69 and
17.5.

B. 66 and
17.5.

C. 66 and
17.

D. 69 and
17.

62. When a sample has an odd number of observations, the median is the:

A. observation in the center of the data array.

B. average of the two observations in the center of the data array.

 C. value of the most frequent
observation.

D. average of Q1 and Q3.

63. As a measure of variability, compared to the range, an advantage of the standard deviation is:

A. being calculated easily through the use of a formula.

B. considering only the data values in the middle of the data array.

C. describing the distance between the highest and lowest values.

D. considering all data values.

64. Which two statistics offer robust measures of center when outliers are present?

A. Mean and mode.

B. Median and trimmed mean.

C. Midrange and geometric mean.

D. Variance and standard deviation.

65. Which Excel function is designed to calculate z = (x - μ)/σ for a column of data?

A. =STANDARDIZE

B. =NORM.DIS
T

C. =STDEV.P

D. =AVEDEV

66. Which Excel function would be least useful to calculate the quartiles for a column of data?

A. =STANDARDIZE

B. =PERCENTILE.EX
C

C. =QUARTILE.EXC

D. =RANK
67. A sample of 50 breakfast customers of McDonald's showed the spending below. Which statement is least likely to be correct?

A. The median is very close to the midhinge.

B. The median purchase is slightly less than $5.

C. About 75 percent of the customers spend less than $7.

D. The mean is a reasonable measure of center.

68. VenalCo Market Research surveyed 50 individuals who recently purchased a certain CD, revealing the age distribution shown
below. Which statement is least defensible?

A. The mean age probably exceeds the median age.

B. The mode would be a reasonable measure of center.

C. The data are somewhat skewed to the left.

D. The CD is unlikely to appeal to retirees.

69. Given a sample of three items (X = 4, 6, 5), which statement is incorrect?

A. The geometric mean is

5.2.

B. The standard deviation is 1.

 C. The coefficient of variation is 20 percent.

D. The quartiles are

useless.

70. A sample of customers from Barnsboro National Bank shows an average account balance of $315 with a standard deviation of
$87. A sample of customers from Wellington Savings and Loan shows an average account balance of $8350 with a standard
deviation of $1800. Which statement about account balances is correct?

A. Barnsboro Bank has more variation.

B. Wellington S&L has more variation.

C. Both have the same variation.

71. Histograms are best used to:

A. provide a visual estimate of the standard deviation.

B. show the quartiles of the data set.

C. assess the shape of the

distribution.

D. reveal the interquartile range of the data

set.

72. The ______________ shows the relationship between two variables.

A. box
plot

B. bar
chart

C. histogram

D. scatter
plot

73. If the mean and median of a population are the same, then its distribution is:

A. normal.

B. skewed
.

C. symmetric.

D. uniform.
74. In the following data set {7, 5, 0, 2, 7, 15, 5, 2, 7, 18, 7, 3, 0}, the value 7 is:

A. the
mean.

B. the
mode.

C. both the mode and median.

D. both the mean and mode.

75. The median of 600, 800, 1000, 1200 is:

A. 800.

B. 1000.

C. 900.

D. 950.

76. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. The interquartile range
is:

A. 12
minutes.

B. 16
minutes.

C. 22
minutes.

D. impossible to determine without knowing

n.

77. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. Which is incorrect
regarding the fences?

A. The upper inner fence is 49 minutes.

B. The upper outer fence is 67 minutes.

C. A waiting time of 45 minutes exceeds the upper inner fence.

D. A waiting time of 70 minutes would be an outlier.

78. When using Chebyshev's Theorem, the minimum percentage of sample observations that will fall within two standard
deviations of the mean will be __________ the percentage within two standard deviations if a normal distribution is assumed
(Empirical Rule).

A. smaller
than
 B. greater than

C. the same
as

79. Which distribution is least likely to be skewed to the right by high values?

A. Annual incomes of n passengers on a flight from New York to London

B. Weekend gambling losses of n customers at a major casino

C. Accident damage losses by n renters of an auto rental company

D. Cost of a plain McDonald's hamburger in n U.S. cities

80. Based on daily measurements, Bob's weight has a mean of 200 pounds with a standard deviation of 16 pounds, while Mary's
weight has a mean of 125 pounds with a standard deviation of 15 pounds. Who has the smaller relative variation?

A. Bob

B. Mary

C. They are the same.

81. Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches with a standard deviation of
2.5 inches and a mean weight of 125 pounds with a standard deviation of 10 pounds. In relative terms, it is correct to say that:

A. Frieda is taller and thinner than women in her age group.

B. for this group of women, weight has greater variation than height.

C. Frieda's height is more unusual than her weight.

D. the variation coefficient exceeds 10 percent for both height and weight.

82. Which statement is false?

A. The coefficient of variation cannot be used when the mean is zero.

B. The standard deviation is in the same units as the mean (e.g., kilograms).

C. The mean from a frequency tabulation may differ from the mean from raw data.

D. The skewness coefficient is zero in a sample from any normal distribution.

83. The values of xmin and xmax can be inferred accurately except in a:

A. box
plot.
 B. dot plot.

C. histogram.

D. scatter
plot.

84. Which of the following statements is likely to be true?

A. The median personal income of California taxpayers would probably be near the mean.

B. The interquartile range offers a measure of income inequality among California residents.

C. For income, the sum of squared deviations about the mean is negative about half the time.

D. For personal incomes in California, outliers in either tail would be equally likely.

85. Which statistics offer robust (resistant to outliers) measures of center?

A. Mean, midrange, mode.

B. Median, midhinge, trimmed

mean.

C. Trimmed mean, midrange, midhinge.

D. Mean, mode, quartiles.

86. The Empirical Rule says that:

A. most business data sets are normally distributed.

B. outliers are within three standard deviations of the mean.

C. in most business data we expect the mean and median to be similar.

D. about 32 percent of the data are beyond one standard deviation from the
mean.

87. Three randomly chosen Seattle students were asked how many round trips they made to Canada last year. Their replies were
3, 4, 5. The geometric mean is:

A. 3.877.

B. 4.000.

C. 3.915.

D. 4.422.
88. Three randomly chosen California students were asked how many times they drove to Mexico last year. Their replies were 4, 5,
6. The geometric mean is:

A. 3.87.

B. 5.00.

C. 5.42.

D. 4.93.

89. Three randomly chosen Colorado students were asked how many times they went rock climbing last month. Their replies were
5, 6, 7. The standard deviation is:

A. 1.212.

B. 0.816.

C. 1.000.

D. 1.056.

90. Patient survival times after a certain type of surgery have a very right-skewed distribution due to a few high outliers.
Consequently, which statement is most likely to be correct?

A. Median > Midrange

B. Mean < Median

C. Mean >
Midrange

D. Mean > Trimmed Mean

91. So far this year, stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while stock B has had a
mean price of $10.57 per share with a standard deviation of $3.02. Which stock is more volatile?

A. Stock A

B. Stock B

C. They are the same.

92. Outliers are indicated using fences on a

A. box
plot.

B. dot plot.

C. histogram.
 D. Pareto
chart.

93. Which is not a measure of variability?

A. Mean absolute deviation

(MAD)

B. Rang
e

C. Coefficient of variation

D. Trimmed mean

94. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The geometric mean is:

A.

B. 2.604

C. 1.517

D.

95. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The median is:

A. 7.0.

B. 3.0.

C. 3.5.

D. 2.5.

96. One disadvantage of the range is that:

A. only extreme values are used in its calculation.

B. it is expressed in different units than the mean.

C. it does not exist for some data sets.

D. it is undefined if any X values are 0 or negative.

97. Which is a characteristic of the standard deviation?

A. It is not greatly affected by outliers.

B. It is measured in the same units as the

mean.

C. It measures dispersion around the median.

D. It has a natural, concrete

meaning.

98. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the geometric mean is:

A. 2.158.

B. 1.545.

C. 2.376.

D. 3.017.

99. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is:

A. 2.

B. 3.

C. 3.5.

D. 2.5.

100. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which measure of center is least representative of the "typical" student?

A. Mean

B. Median

C. Mode

D. Midrange
101. Here are statistics on order sizes of Megalith Construction Supply's shipments of two kinds of construction materials last year.

Which order sizes have greater variability?

A. Girders

B. Rivets

C. They are the same.

D. Cannot be determined without knowing

n

102. The quartiles of a distribution are most clearly revealed in which display?

A. Box plot

B. Scatter plot

C. Histogram

D. Dot plot

103. The sum of the deviations around the mean is:

A. greater than zero if data are right-skewed.

B. smaller when the units are smaller (e.g., milligrams versus kilograms).

C. always
zero.

D. dependent on the sample

size.

104. What does the graph below (profit/sales ratios for 25 Fortune 500 companies) reveal?

A. That the median exceeds the

mean.
 B. That the data are slightly left-skewed.

C. That the interquartile range is about

8.

D. That the distribution is

bell-shaped.

105. Find the sample correlation coefficient for the following data.

A. .8911

B. .9132

C. .9822

D. .9556

106. Heights of male students in a certain statistics class range from Xmin = 61 to Xmax = 79. Applying the Empirical Rule, a
reasonable estimate of σ would be:

A. 2.75.

B. 3.00.

C. 3.25.

D. 3.50.

107. A reporter for the campus paper asked five randomly chosen students how many occupants, including the driver, ride to school
in their cars. The responses were 1, 1, 1, 1, 6. The coefficient of variation is:

A. 25
percent.

B. 250
percent.

C. 112 percent.
 D. 100
percent.

108. A smooth distribution with one mode is negatively skewed (skewed to the left). The median of the distribution is $65. Which of
the following is a reasonable value for the distribution mean?

A. $76

B. $54

C. $81

D. $65

109. In a positively skewed distribution, the percentage of observations that fall below the median is:

A. about 50 percent.

B. less than 50 percent.

C. more than 50
percent.

D. can't tell without knowing n.

110. Which is a weakness of the mode?

A. It does not apply to qualitative data.

B. It is inappropriate for continuous data.

C. It is hard to calculate when n is small.

D. It is usually about the same as the median.

111. The mode is least appropriate for:

A. continuous
data.

B. categorical
data.

C. discrete data.

D. Likert scale data.

112. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck. This box plot of
Craig's MPG on 195 tanks of gas does not support which statement?

A. There are several outliers.

B. This is a very right-skewed distribution.

C. Most MPG values are concentrated in a narrow range.

D. The interquartile range is less than 2 MPG.

113. Estimate the mean exam score for the 50 students in Prof. Axolotl's class.

A. 59.2

B. 62.0

C. 63.5

D. 64.1

114. A survey of salary increases received during a recent year by 44 working MBA students is shown. Find the approximate mean
percent raise.

A. 6.56

B. 6.74
 C. 5.90

D. 6.39

115. The following frequency distribution shows the amount earned yesterday by employees of a large Las Vegas casino. Estimate
the mean daily earnings.

A. $112.50

B. $125.01

C. $105.47

D. $117.13

116. The following table is the frequency distribution of parking fees for a day:

The mean parking fee is:

A. $7.07.

B. $6.95.

C. $7.00.

D. $7.25.

117. Find the standard deviation of this sample: 4, 7, 9, 12, 15.

A. 4.550

B. 3.798

C. 4.278

D. 2.997
118. The 25th percentile for waiting time in a doctor's office is 10 minutes. The 75th percentile is 30 minutes. Which is incorrect
regarding the fences?

A. The upper inner fence is 60 minutes.

B. The upper outer fence is 90 minutes.

C. A waiting time of 45 minutes would be an outlier.

D. The lower fences are not relevant in this problem.

119. Five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home sold for $2.5 million.
Which measure of central tendency best represents a typical home price in Oxnard Acres?

A. The mean or
median.

B. The median or
mode.

C. The mean or mode.

D. The midrange or mean.

120. In Tokyo, construction workers earn an average of ×420,000 (yen) per month with a standard deviation of ×20,000, while in
Hamburg, Germany, construction workers earn an average of €3,200 (euros) per month with a standard deviation of €57. Who
is earning relatively more, a worker making ×460,000 per month in Tokyo or one earning €3,300 per month in Hamburg?

A. The workers are the same in relative terms.

B. The Tokyo worker is relatively better off.

C. The Hamburg worker is relatively better off.

121. Which statement is false? Explain.

A. If μ = 52 and σ = 15, then X = 81 would be an outlier.

B. If the data are from a normal population, about 68 percent of the values will be within μ ± σ.

C. If μ = 640 and σ = 128, then the coefficient of variation is 20 percent.

122. Which is not a measure of variability?

A. Mean absolute deviation

(MAD)

B. Standard deviation

C. Midhing
e
 D. Interquartile range

123. If Q1 = 150 and Q3 = 250, the upper fences (inner and outer) are:

A. 450 and
600.

B. 350 and
450.

C. 400 and
550.

D. impossible to determine without more

information.

124. Variables X and Y have the strongest correlation in which scatter plot?

A. Figure
A.

B. Figure
B.

C. They are about the same.

125. Which of the following statements is likely to apply to the incomes of 50 randomly chosen taxpayers in California?

A. The median income would probably be near the mean.

B. The midhinge would be a robust measure of center.

C. The sum of squared deviations about the mean would be negative.

D. Outliers in either tail would be equally likely.

126. A certain health maintenance organization (HMO) examined the number of office visits by each of its members in the last year.
For this data set, we would anticipate that the geometric mean would be

A. a reasonable measure of center.

 B. zero because some HMO members would not have an office visit.

C. too high because the distribution is likely to be skewed to the left.

D. negative because some data values would be below the mean.

127. Three randomly chosen Colorado students were asked how many times they went rock climbing last month. Their replies were
5, 6, 7. The coefficient of variation is:

A. 16.7
percent.

B. 13.6
percent.

C. 20.0
percent.

D. 35.7
percent.

128. The mean of a population is 50 and the median is 40. Which histogram is most likely for samples from this population?

A. Sample
A.

B. Sample
B.

C. Sample C.

129. If Excel's sample skewness coefficient is positive, we conclude that

A. the population is skewed to the right, if the sample size is small.

B. the population is symmetric, as long as the sample size is very large.

C. the coefficient is within the range of chance for a symmetric population.

D. we should consult a table of percentiles that takes sample size into consideration.
130. If Excel's sample kurtosis coefficient is negative, we conclude that

A. the population is platykurtic, as long as the sample size is small.

B. the population is leptokurtic, as long as the sample size is large.

C. the coefficient is within the range of chance for a symmetric population.

D. we should consult a table of percentiles that takes sample size into consideration.

Short Answer Questions

131. In Osaka, Japan, stock brokers earn ×6000 per hour on the average, with a standard deviation of ×1200. In Stuttgart,
Germany, stock brokers earn an average of €18 per hour with a standard deviation of €6. In which country is the variation in
wages greatest?

132. Find the coefficient of variation of these numbers: 14, 17, 17, 19, 26. Would the variability of those numbers be greater than,
less than, or the same as the variability of 24, 27, 27, 29, 36? Defend your answer.

133. Ten randomly chosen students at a certain university were asked how many times they smoked marijuana during the preceding
week. Their answers were 0, 8, 0, 0, 2, 4, 0, 0, 6, 0. A campus newspaper article appeared, with the headline "Average Student
Uses No Pot." Is this a fair assessment of central tendency? Discuss the alternatives.
134. Twelve students were asked how many credit cards they owned. The responses were 0, 0, 1, 2, 2, 3, 3, 4, 4, 5, 5, 11. (a) Find
the mean, median, and mode. (b) Which measure of center seems best in this case? (c) Find the first and third quartiles. What
do they tell you?

135. Eleven students were asked how many siblings they had. The responses were 0, 1, 2, 2, 2, 2, 2, 3, 3, 4, 5. Find the mean,
median, mode, and geometric mean. Which would you prefer in this case, and why not the others?

136. Patient waiting times in the Tardis Orthopedic Clinic have a mean of 50 minutes with a standard deviation of 25 minutes. Within
what range would approximately 95 percent of the waiting times lie if we were sampling a normal distribution? Do you think the
distribution is likely to be normal? Explain.
137. The athletic departments at 10 randomly selected U.S. universities were asked by the Equal Employment Opportunity
Commission to state what percentage of their nursing scholarships were presently held by women. The responses were 5, 4, 2,
1, 1, 2, 10, 5, 5, 5. Find the mean, median, mode, and geometric mean. Which is the most appropriate measure of central
tendency? The least appropriate? Explain your answer. Is there an outlier?

138. A survey of 10 randomly chosen drivers showed the following number of persons per car, including the driver: 1, 5, 1, 5, 2, 1, 1,
1, 2, 1. Describe the center, variability, and skewness for this sample.
139. A national survey showed that most commuter cars contain only the driver. Hungry for a story, a campus newspaper reporter
asked five randomly chosen commuter students how many occupants, including the driver, rode to school in their cars. Their
responses were 1, 1, 1, 1, and 6. The next day a story appeared in the paper headlined "University Commuters Double
National Average Ridership." Is this a reasonable assessment of central tendency? How would you characterize the variability
of the sample?

140. A 10-point quiz was given by Professor Ennuyeaux. Of the 10 students in the class, half got zero and the others got perfect
scores. List the students' scores. Then find the mean, median, mode, and geometric mean of their scores. Which is the most
appropriate measure of center? The least appropriate?

141. The owner of a chicken farm kept track of each hen's eating and egg production for many months, with the results below.
Which has more variation, feed consumption or egg output?
142. Below are the ages of 21 CEOs. Find the mean, median, and mode. Are there any outliers? Explain.
46, 48, 49, 49, 50, 52, 54, 55, 57, 57, 58, 59, 60, 61, 62, 62, 63, 63, 65, 67, 75

143. Bob's sample of freshman GPAs showed a mean of 2.72 with a standard deviation of 0.31. (a) What range would you predict
for all the grades? For the middle 95 percent? Explain. (b) Why might your estimates be inaccurate?
144. A team of introductory statistics students went to a grocery store and recorded the total calories and fat calories for various
kinds of soup. They produced a table of statistics and two dot plots. Write a succinct summary of the center, variability, and
shape for each data set. Note: TrimMean is the 5 percent trimmed mean (removing the smallest 5 percent and the largest 5
percent of the values, rounded to the nearest integer).
145. Here are descriptive statistics from Excel for annual per-pupil expenditures in 94 Ohio cities and home sizes in a certain
neighborhood. Very briefly compare the variability and shape of the two data sets.
146. Below are shown a dot plot and summary statistics for a random sample of 34 shower heads. The measurements are
maximum flow rates (in gallons per minute) at pressure of 80 pounds per square inch. Use the data to illustrate the difference
between the two alternative definitions of "outlier," and make any other comments you feel are relevant. Note: TrimMean
removes the smallest 5 percent and the largest 5 percent of the values.

147. Briefly describe these data. Sketch its box plot and describe the sample succinctly.
148. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck. Describe Craig's
gasoline mileage based on this histogram of 195 tanks of gas.

149. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck. Describe Craig's
gasoline mileage based on this box plot of 195 tanks of gas.
150. Here are advertised prices of 21 used Chevy Blazers. Describe the distribution (center, variability, shape).

151. Briefly describe this sample of departure delays on American Airlines flights out of Denver over a seven-day period, March 3-9
(n = 149 flights).

152. Six graduates from Fulsome University's Master's of Waste Management program were hired by a Saudi Arabian firm at
$110,000 each, while the other four graduates were unemployed. The university placement office bragged, "Our MWM
graduates enjoyed a median starting salary of $110,000." Is this a reasonable assessment of central tendency? What are the
alternatives?
 Answer Key

True / False Questions

1. A data set with two values that are tied for the highest number of occurrences is called bimodal.

TRUE

Bimodal means two modes.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

2. The midrange is not greatly affected by outliers.

FALSE

Extremes distort the midrange (average of highest and lowest data values).

Range: 1, 2, 3, 4, 5, ……………………100 1000 (101 numbers)

MIDRANGE = (1+1000)/2

Midrange = (x min + x max)/2

(NOTE: mean is also affected by outlier

Median and mode are not affected by outlier)

(extreme value = outliers)

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

3. The second quartile is the same as the median.

TRUE

The second quartile, the median, and the 50th percentile are the same thing.

Quintiles: 5 groups (each accounts for 20% of the number of data)

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

4. A trimmed mean may be preferable to a mean when a data set has extreme values.

TRUE

Trimming diminishes the effect of outliers.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

5. One benefit of the box plot is that it clearly displays the standard deviation.

FALSE

A box plot shows quartiles.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

6. It is inappropriate to apply the Empirical Rule to a population that is right-skewed.

TRUE

The E.R. applies to normal populations.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

7. Given the data set 10, 5, 2, 6, 3, 4, 20, the median value is 5.

TRUE

Sort and find middle value.

Sort data in the ascending order: 2, 3, 4, 5, 6, 10, 20.

Median = 5
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

8. Given the data set 2, 5, 10, 6, 3, the median value is 3.

FALSE

Sort and find middle value: 2 3 5 6 10.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

9. When data are right-skewed, we expect the median to be greater than the mean.

FALSE

It's the other way around, as the mean will be pulled up by extremes.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

10. The sum of the deviations around the mean is always zero.

TRUE

The mean is the fulcrum (balancing point), so deviations must sum to zero.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

11. The midhinge is a robust measure of center when there are outliers.

TRUE

Outliers have little effect on the midhinge (average of the 25th and 75th percentiles).
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

12. Chebyshev's Theorem says that at most 50 percent of the data lie within 2 standard deviations of the mean.

FALSE

At least 75 percent by Chebyshev.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-04 Apply Chebyshev's theorem.
Topic: Standardized Data

13. Chebyshev's Theorem says that at least 95 percent of the data lie within 2 standard deviations of the mean.

FALSE

At least 75 percent by Chebyshev.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-04 Apply Chebyshev's theorem.
Topic: Standardized Data

14. If there are 19 data values, the median will have 10 values above it and 9 below it since n is odd.

FALSE

When n is odd, the median is the middle member of the sorted data set. In this case, the median is x10 and there will be 9
below x10 (x1,..., x9) and 9 above x10 (x11,..., x19).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

15. If there are 20 data values, the median will be halfway between two data values.

TRUE

Median is between two data values when n is even.

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

16. In a left-skewed distribution, we expect that the median will be greater than the mean.

TRUE

Mean is likely to be pulled down by low extremes.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

17. If the standard deviations of two samples are the same, so are their coefficients of variation.

FALSE

The means may differ, which affects the C.V.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

18. A certain health maintenance organization (HMO) examined the number of office visits by its members in the last year. This
data set would probably be skewed to the left due to low outliers.

FALSE

Lower bound is zero, but high extremes are likely for sicker individuals.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

19. A certain health maintenance organization (HMO) examined the number of office visits by its members in the last year. For
this data set, the mean is probably not a very good measure of a "typical" person's office visits.

TRUE

Lower bound is zero, but high extremes are likely for sicker individuals.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

20. Referring to this box plot of ice cream fat content, the median seems more "typical" of fat content than the midrange as a
measure of center.

TRUE

Midrange (average of low and high) will be pulled down by left-tail minimum.

EXPLANATION:

If the data is skewed or has outliers, the median is a more robust measure of the centre
than the midrange.
The midrange is the mathematical average of the minimum and maximum values in the
dataset and can be influenced heavily by outliers.

Whereas, the median is the value that separates the lower 50% of the dataset from the
upper 50%, and it is not affected by extreme values or outliers in the same way as the
midrange.

Here, In the given boxplot, the data is heavily left skewed, and the distribution is totally
non-symmetric. Hence, we can say that the median is a better measure of the "typical"
value than the midrange.

Hence, True

Explanation:

Therefore the statement that, the median seems more "typical" of fat content than the
midrange as a measure of center is True.
 AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

21. Referring to this box plot of ice cream fat content, the mean would exceed the median.

FALSE

Data are skewed left.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

22. Referring to this box plot of ice cream fat content, the skewness would be negative.

TRUE

Data are skewed left (negative skewness) as indicated by long left tail.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots
23. Referring to this graph of ice cream fat content, the second quartile is about 61.

TRUE

Drop a line to lower axis to hit at 61.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

24. The range as a measure of variability is very sensitive to extreme data values.

TRUE

Range depends only on highest and lowest data values, so it is easily distorted.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

25. In calculating the sample variance, the sum of the squared deviations around the mean is divided by n - 1 to avoid
underestimating the unknown population variance.

TRUE

Check the definition. You lose one piece of information because the mean is estimated.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

26. Outliers are data values that fall beyond ±2 standard deviations from the mean.

FALSE

Outliers are 3 standard deviations from the mean.

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

27. The Empirical Rule assumes that the distribution of data follows a normal curve.

TRUE

Unlike Chebyshev, the E.R. assumes a normal population.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

28. The Empirical Rule can be applied to any distribution, unlike Chebyshev's theorem.

FALSE

The E.R. assumes a normal population, while Chebyshev applies to any population.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data
29. When applying the Empirical Rule to a distribution of grades, if a student scored one standard deviation below the mean,
then she would be at the 25th percentile of the distribution.

FALSE

About 15.87 percent (not 25 percent) are less than one standard deviation below the mean (in a normal distribution).

(100%-68%)/2 = 16%

She would be at the 25th percentile of the distribution. This means that she will be top 75%.

NOTE:

Tại vị trí mean – SD thì đó là 16th percentile

Tại vị trí mean + Sd thì đó là top 16%

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

30. Kurtosis cannot be judged accurately by looking at a histogram.

TRUE

Histograms are affected by scaling, so peakedness is hard to judge.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis
31. A platykurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

FALSE

Platykurtic is flatter than a normal distribution (thicker tails).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

32. A leptokurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

TRUE

Leptokurtic is more sharply peaked and has thinner tails.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

33. A positive kurtosis coefficient in Excel indicates a leptokurtic condition in a distribution.

TRUE

The sign of Excel's kurtosis coefficient indicates the kurtosis direction relative to a normal distribution.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis
34. A sample consists of the following data: 7, 11, 12, 18, 20, 22, 43. Using the "three standard deviation" criterion, the last
observation (X = 43) would be considered an outlier.

FALSE

43 is not more than three standard deviations above the mean for this data set.

µ = 19

σ = 11.9

(µ ± 3σ)
🡺 Interval = (-16,7 ; 54,7)
🡺 43 is within that interval; therefore, 43 is within 3 standard deviation. So, 43 is not outlier

NOTE: Tuy nhiên nếu đề hỏi số 56 có phải outlier hay không, thì câu trả lời là có vì 56 > 54,7.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-06 Transform a data set into standardized values.
Topic: Standardized Data

Multiple Choice Questions

35. The coefficient of variation is

A. measured on a scale from 0 to 100.

B. a unit-free statistic.
 C. helpful when the sample means are zero.

D. a measure of correlation for two variables.

The C.V. is unit free. It is the standard deviation as a percentage of the mean.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

36. Which is not an advantage of the method of medians to find Q1 and Q3?

A. Ease of interpolating quartile

positions

B. Ease of application in small data sets

C. Intuitive definitions without complex formulas

D. Same method as Excel's =QUARTILE.EXC function.

When the quartiles lie between two data values, the method of medians goes halfway between the values (very simple),
while Excel interpolates between them in a more complex way.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

37. Which is a characteristic of the mean as a measure of center?

A. Deviations do not sum to zero when there are extreme values.

B. It is less reliable than the mode when the data are continuous.

C. It utilizes all the information in a sample.

D. It is usually equal to the median in business

data.

The mean utilizes all n data values. Deviations always sum to zero around the mean. The mean works for continuous data
(unlike the mode). The mean often differs from the median in business data.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center
38. The position of the median is:

A. n/2 in any sample.

B. n/2 if n is even.

C. n/2 if n is
odd.

D. (n + 1)/2 in any sample.

This formula always works for the median position. For example, if n = 10 (even) the median is at position (10 + 1)/2 = 5.5,
or halfway between x5 and x6. But if n = 11 (odd) the median is at position (11 + 1)/2 = 6, which is observation x6.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

39. Which is a characteristic of the trimmed mean as a measure of center?

A. It is similar to the mean if there are offsetting high and low extremes.

B. It is especially helpful in a small sample.

C. It does not require sorting the sample.

D. It is basically the same as the midrange.

After sorting, we can trim unusual values to stabilize the mean.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

40. Which is not a characteristic of the geometric mean as a measure of center?

A. It is similar to the mean if the data are skewed right.

B. It mitigates the effects of large data values.

C. It is useful in business data to calculate average growth rates.

D. It cannot be calculated when the data contain negative or zero values.

Although both the mean and the geometric mean are affected by high extremes in skewed data, the geometric mean tends
to reduce their influence.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

41. Which is not a characteristic of the standard deviation?

A. It is always the square root of the variance.

B. It is not applicable when data are continuous.

C. It can be calculated when the data contain negative or zero

values.

D. Its physical interpretation is not as easy as the MAD.

The standard deviation applies to any data measured on a ratio or interval scale. Because it is a square root, its visual
interpretation may be less clear than the MAD.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

42. Chebyshev's Theorem:

A. applies to all samples.

B. applies only to samples from a normal population.

C. gives a narrower range of predictions than the Empirical Rule.

D. is based on Sturges' Rule for data classification.

The strength of Chebyshev's Theorem is that it makes no assumption about normality, while the E.R. only works for normal
populations.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-04 Apply Chebyshev's theorem.
Topic: Standardized Data

43. Which of the following is not a valid description of an outlier?

A. A data value beyond the outer fences

B. A data value that is very

unusual

C. A data value that lies below Q1 or above Q3

D. A data value several standard deviations from the mean.

 Data values outside the quartiles (top or bottom 25 percent) are not very unusual.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

44. If samples are from a normal distribution with μ = 100 and σ = 10, we expect:

A. about 68 percent of the data within 90 to 110.

B. almost all the data within 80 to

120.

C. about 95 percent of the data within 70 to 130.

D. about half the data to exceed

75.

Review the Empirical Rule. The range 90 to 110 is the μ ± 1σ range.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

45. In a sample of 10,000 observations from a normal population, how many would you expect to lie beyond three standard
deviations of the mean?

A. None of them

B. About 27

C. About 100

D. About 127

Within μ ± 3σ we would expect 99.73 percent of 10,000, or 9,973 data values.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

46. The Excel formula for the standard deviation of a sample array named Data is:

A. =STDEV.S(Data).

B. =STANDEV(Data).
 C. =STDEV.P(Data).

D. =SUM(Data)/(COUNT(Data)-1).

STDEV.S(Data) denotes a sample standard deviation.

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

47. Which is not true of an outlier?

A. It is likely to be from a different population.

B. It suggests an error in recording the data.

C. It is best discarded to get a better

mean.

D. It is an anomaly that may tell the researcher something.

We are reluctant to delete outliers, as they may tell us something important.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

48. Estimating the mean from grouped data will tend to be most accurate when:

A. observations are distributed uniformly within classes.

B. there are few classes with wide class limits.

C. the sample is not very large and bins are wide.

D. the standard deviation is large relative to the mean.

Many bins and uniform data distribution within bins would give a result closest to the ungrouped mean μ.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-10 Calculate the mean and standard deviation from grouped data.
Topic: Grouped Data

49. Which is true of the kurtosis of a distribution?

A. A distribution that is flatter than a normal distribution (i.e., thicker tails) is mesokurtic.
 B. A distribution that is more peaked than a normal distribution (i.e., thinner tails) is
platykurtic.

C. It is risky to assess kurtosis if the sample size is less than 50.

D. The expected range of the kurtosis coefficient increases as n increases.

Shape is hard to judge in small samples. The 50 is just a rule of thumb. Excel computes kurtosis for samples of any size,
but tables of critical values may not go down below 50.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

50. Which is true of skewness?

A. In business data, positive skewness is unusual.

B. In a negatively skewed distribution, the mean is likely to exceed the median.

C. Skewness often is evidenced by one or more outliers.

D. The expected range of Excel's skewness coefficient increases as n increases.

Skewness due to extreme data values is common in business data. Right skewness is common, which increases the mean
relative to the median.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

51. Which is not true of the Empirical Rule?

A. It applies to any
distribution.

B. It can be applied to fewer distributions than Chebyshev's Theorem.

C. It assumes that the distribution of data follows a bell-shaped, normal

curve.

D. It predicts more observations within μ ± kσ than Chebyshev's Theorem.

The E.R. applies only to normal populations, while Chebyshev's Theorem is general.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data
52. Which is a correct statement concerning the median?

A. In a left-skewed distribution, we expect that the median will exceed the mean.

B. The sum of the deviations around the median is

zero.

C. The median is an observed data value in any data set.

D. The median is halfway between Q1 and Q3 on a box plot.

The mean is pulled down in left-skewed data, but deviations around it sum to zero in any data set. The median may be
between two data values and may not be in the middle of the box plot.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

53. Which statement is true?

A. With nominal data we can find the mode.

B. Outliers distort the mean but not the standard deviation.

C. Business and economic data are rarely skewed to the right.

D. If we sample a normal population, the sample skewness coefficient is exactly 0.

The mode works well for nominal data.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this data set, which statement is
incorrect concerning measures of center?

A. The median is 60.00.

B. The mode is not helpful.

C. The 5 percent trimmed mean would be awkward.

D. The geometric mean is 35.05.

To find the geometric mean, multiply the data values and take the 11th root to get G = 41.02. Outliers affect both the mean
and the standard deviation. There are multiple modes in this example.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data set, which statement is incorrect
concerning measures of center?

A. The median is 70.

B. The mode is not helpful.

C. The geometric mean is useless.

D. The mean is 70.

The median is 75 (halfway between x5 = 70 and x6 = 80 in the sorted array). The zeros render the geometric mean useless.
The modes in this case are not unique.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which statement is incorrect?

A. The standard deviation is 29.61.

B. The data are slightly left-skewed.

C. The midrange and mean are almost the same.

D. The third quartile is 90.

The midrange is (0 + 100)/2 = 50, while the mean is 69.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm and the mean weight is 84 kg with a
standard deviation of 8 kg. Elmer is 170 cm tall and weighs 70 kg. It is most nearly correct to say that:

A. Elmer's weight is more unusual than his height.

B. Elmer is heavier than he is

tall.

C. Height and weight have the same degree of variation.

D. Height has more variation than weight.

 Convert Elmer's height and weight to z-scores. For Elmer's weight, z = (x - μ)/σ = (70 - 84)/8 = -1.75, while for Elmer's
height, z = (x - μ)/σ = (170 - 178)/8 = -1.00. Therefore, Elmer is farther from the mean weight than from the mean height.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-06 Transform a data set into standardized values.
Topic: Standardized Data

58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences, which is correct?

A. John is an extreme outlier.

B. John is an outlier.

C. John is not an outlier.

D. John is in the 85th

percentile.

The upper inner fence is 60 + 1.5(60 - 40) = 90 so John is not an outlier.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences, which is correct?

A. John is unusual but not an outlier.

B. John is an outlier.

C. John is neither unusual nor an outlier.

D. John is in the 30th

percentile.

The lower inner fence is 70 - 1.5(80 - 70) = 55 so John is an outlier. Actually, John is an extreme outlier because the lower
outer fence is 70 - 3.0(80 - 70) = 40.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population variance is:

A. 6.07.

B. 36.82.
 C. 5.16.

D. 22.86.

Use the population formula or Excel's =VAR.P(Data).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median are:

A. 69 and
17.5.

B. 66 and
17.5.

C. 66 and
17.

D. 69 and
17.

Range = xmax - xmin = 69 - 3 = 66. Median is halfway between 17 and 17.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

62. When a sample has an odd number of observations, the median is the:

A. observation in the center of the data array.

B. average of the two observations in the center of the data array.

C. value of the most frequent

observation.

D. average of Q1 and Q3.

Median position is always (n + 1)/2. It need not be halfway between the quartiles.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center
63. As a measure of variability, compared to the range, an advantage of the standard deviation is:

A. being calculated easily through the use of a formula.

B. considering only the data values in the middle of the data array.

C. describing the distance between the highest and lowest values.

D. considering all data values.

The range is easy to calculate but utilizes only two data values, which may be unusual.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

64. Which two statistics offer robust measures of center when outliers are present?

A. Mean and mode.

B. Median and trimmed mean.

C. Midrange and geometric mean.

D. Variance and standard deviation.

Extremes are excluded from the trimmed mean and do not affect the median.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

65. Which Excel function is designed to calculate z = (x - μ)/σ for a column of data?

A. =STANDARDIZE

B. =NORM.DIS
T

C. =STDEV.P

D. =AVEDEV

You need the sample mean and sample standard deviation to find the z-score.
 AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-06 Transform a data set into standardized values.
Topic: Standardized Data

66. Which Excel function would be least useful to calculate the quartiles for a column of data?

A. =STANDARDIZE

B. =PERCENTILE.EX
C

C. =QUARTILE.EXC

D. =RANK

Check Appendix J for function definitions.

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

67. A sample of 50 breakfast customers of McDonald's showed the spending below. Which statement is least likely to be
correct?

A. The median is very close to the midhinge.

B. The median purchase is slightly less than $5.

C. About 75 percent of the customers spend less than $7.

D. The mean is a reasonable measure of center.

Outliers and right-skewness would affect the mean.

AACSB: Analytical Thinking

Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots
68. VenalCo Market Research surveyed 50 individuals who recently purchased a certain CD, revealing the age distribution
shown below. Which statement is least defensible?

A. The mean age probably exceeds the median age.

B. The mode would be a reasonable measure of center.

C. The data are somewhat skewed to the left.

D. The CD is unlikely to appeal to retirees.

EXPLANATION:

The mean would be lower than the median due to left-skewness.

This distribution is skewed left so mean < median < mode.

AACSB: Analytical Thinking

Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

69. Given a sample of three items (X = 4, 6, 5), which statement is incorrect?

A. The geometric mean is

5.2.

B. The standard deviation is 1.

C. The coefficient of variation is 20 percent.

D. The quartiles are

useless.

Multiply and take the 3rd root to get the geometric mean of 4.932. With only three data values, the quartiles cannot be
calculated (we can't divide three items into four groups).
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

70. A sample of customers from Barnsboro National Bank shows an average account balance of $315 with a standard
deviation of $87. A sample of customers from Wellington Savings and Loan shows an average account balance of $8350
with a standard deviation of $1800. Which statement about account balances is correct?

A. Barnsboro Bank has more variation.

B. Wellington S&L has more variation.

C. Both have the same variation.

Calculate the coefficient of variation for each bank. For Barnsboro, CV = 100 × s/ = 100 × 87/315 = 27.62, while for
Wellington CV = 100 × s/ = 100 × 1800/8350 = 21.56.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

71. Histograms are best used to:

A. provide a visual estimate of the standard deviation.

B. show the quartiles of the data set.

C. assess the shape of the

distribution.

D. reveal the interquartile range of the data

set.

A histogram does not show quartiles or standard deviation.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

72. The ______________ shows the relationship between two variables.

A. box
plot

B. bar
chart

C. histogram
 D. scatter
plot

The X-Y scatter plot measures association in a visual way.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-09 Calculate and interpret a correlation coefficient and covariance.
Topic: Correlation and Covariance

73. If the mean and median of a population are the same, then its distribution is:

A. normal.

B. skewed
.

C. symmetric.

D. uniform.

Symmetry exists in normal or uniform populations.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

74. In the following data set {7, 5, 0, 2, 7, 15, 5, 2, 7, 18, 7, 3, 0}, the value 7 is:

A. the
mean.

B. the
mode.

C. both the mode and median.

D. both the mean and mode.

The value 7 occurs four times. The median is 5. The mean is 6.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures 3of Center

75. The median of 600, 800, 1000, 1200 is:

A. 800.
 B. 1000.

C. 900.

D. 950.

Median is halfway between 800 and 1000.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

76. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. The interquartile
range is:

A. 12
minutes.

B. 16
minutes.

C. 22
minutes.

D. impossible to determine without knowing

n.

The IQR is 31 - 19 = 12.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

77. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. Which is incorrect
regarding the fences?

A. The upper inner fence is 49 minutes.

B. The upper outer fence is 67 minutes.

C. A waiting time of 45 minutes exceeds the upper inner fence.

D. A waiting time of 70 minutes would be an outlier.

Apply definitions of fences. For example, the upper inner fence is 31 + 1.5(31 - 19) = 49.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

78. When using Chebyshev's Theorem, the minimum percentage of sample observations that will fall within two standard
deviations of the mean will be __________ the percentage within two standard deviations if a normal distribution is
assumed (Empirical Rule).

A. smaller
than

B. greater than

C. the same
as

Chebyshev guarantees fewer observations within two standard deviations than the E.R.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-04 Apply Chebyshev's theorem.
Topic: Standardized Data

79. Which distribution is least likely to be skewed to the right by high values?

A. Annual incomes of n passengers on a flight from New York to London

B. Weekend gambling losses of n customers at a major casino

C. Accident damage losses by n renters of an auto rental company

D. Cost of a plain McDonald's hamburger in n U.S. cities

A few high values would skew the data badly in all but the hamburger example, because a McDonald's hamburger is a
standard menu item.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

80. Based on daily measurements, Bob's weight has a mean of 200 pounds with a standard deviation of 16 pounds, while
Mary's weight has a mean of 125 pounds with a standard deviation of 15 pounds. Who has the smaller relative variation?

A. Bob

B. Mary

C. They are the same.

 Calculate the coefficients of variation for Bob and Mary. Bob's CV = 100 × s/ = 100 × 16/200 = 8.00, while Mary's CV =
100 × s/ = 100 × 15/125 = 12.00. Therefore, Bob's weight varies less than Mary's weight in relative terms.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

81. Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches with a standard
deviation of 2.5 inches and a mean weight of 125 pounds with a standard deviation of 10 pounds. In relative terms, it is
correct to say that:

A. Frieda is taller and thinner than women in her age group.

B. for this group of women, weight has greater variation than height.

C. Frieda's height is more unusual than her weight.

D. the variation coefficient exceeds 10 percent for both height and weight.

Calculate the z-scores for Frieda's weight and Frieda's height. For Frieda's height, z = (x - μ)/σ = (67 - 65)/(2.5) = 0.80,
while for Frieda's weight, z = (x - μ)/σ = (135 - 125)/10 = 1.00. Therefore, Frieda's weight is farther from the mean than her
height. For heights, the CV = 100 × σ/μ = 100 × (2.5)/(65) = 3.8%, while for weights, CV = 100 × σ/μ = 100 × 10/125 =
8.0% (both CVs are below 10%).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

82. Which statement is false?

A. The coefficient of variation cannot be used when the mean is zero.

B. The standard deviation is in the same units as the mean (e.g., kilograms).

C. The mean from a frequency tabulation may differ from the mean from raw data.

D. The skewness coefficient is zero in a sample from any normal distribution.

Normal populations are symmetric, but a sample may differ from the population.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis
83. The values of xmin and xmax can be inferred accurately except in a:

A. box
plot.

B. dot plot.

C. histogram.

D. scatter
plot.

The bin limits in a histogram may be rounded, so the values of xmin and xmax may be unclear.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

84. Which of the following statements is likely to be true?

A. The median personal income of California taxpayers would probably be near the mean.

B. The interquartile range offers a measure of income inequality among California residents.

C. For income, the sum of squared deviations about the mean is negative about half the time.

D. For personal incomes in California, outliers in either tail would be equally likely.

Incomes are likely to be skewed due to high extremes, while income is bounded on the low end by zero. A wider IQR
would suggest greater inequality of incomes.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

85. Which statistics offer robust (resistant to outliers) measures of center?

A. Mean, midrange, mode.

B. Median, midhinge, trimmed

mean.

C. Trimmed mean, midrange, midhinge.

D. Mean, mode, quartiles.

Any measure of center using the mean is subject to the influence of outliers.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

86. The Empirical Rule says that:

A. most business data sets are normally distributed.

B. outliers are within three standard deviations of the mean.

C. in most business data we expect the mean and median to be similar.

D. about 32 percent of the data are beyond one standard deviation from the
mean.

The E.R. says that about 68 percent of the observations are within one standard deviation of the mean. Business data
often are skewed.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

87. Three randomly chosen Seattle students were asked how many round trips they made to Canada last year. Their replies
were 3, 4, 5. The geometric mean is:

A. 3.877.

B. 4.000.

C. 3.915.

D. 4.422.

Multiply the three numbers and take the 3rd root of 60 to get 3.915.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

88. Three randomly chosen California students were asked how many times they drove to Mexico last year. Their replies were
4, 5, 6. The geometric mean is:

A. 3.87.

B. 5.00.

C. 5.42.

D. 4.93.
 Multiply the three numbers and take the 3rd root of 120 to get 4.932.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

89. Three randomly chosen Colorado students were asked how many times they went rock climbing last month. Their replies
were 5, 6, 7. The standard deviation is:

A. 1.212.

B. 0.816.

C. 1.000.

D. 1.056.

Use the sample formula or Excel's =STDEV.S(Data).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

90. Patient survival times after a certain type of surgery have a very right-skewed distribution due to a few high outliers.
Consequently, which statement is most likely to be correct?

A. Median > Midrange

B. Mean < Median

C. Mean >
Midrange

D. Mean > Trimmed Mean

Mean is pulled up by high outliers.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

91. So far this year, stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while stock B has had
a mean price of $10.57 per share with a standard deviation of $3.02. Which stock is more volatile?

A. Stock A

B. Stock B
 C. They are the same.

Calculate the coefficient of variation.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

92. Outliers are indicated using fences on a

A. box
plot.

B. dot plot.

C. histogram.

D. Pareto
chart.

On a boxplot, outliers are identified by their distance from the median. Data values outside the inner fences (median ± 1.5
IQR) are outliers. Data values beyond the outer fences (median ± 3.0 IQR) are extreme outliers. This definition of "outlier"
is not the same as the Empirical Rule, which is based on the distance from the mean.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

93. Which is not a measure of variability?

A. Mean absolute deviation

(MAD)

B. Rang
e

C. Coefficient of variation

D. Trimmed mean

The trimmed mean is a measure of center.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability
94. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The geometric mean is:

A.

B. 2.604

C. 1.517

D.

Take the 12th root of the product (97,200) to get 2.604.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

95. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The median is:

A. 7.0.

B. 3.0.

C. 3.5.

D. 2.5.

Sort and go halfway between the two middle data values.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

96. One disadvantage of the range is that:

A. only extreme values are used in its calculation.

B. it is expressed in different units than the mean.

C. it does not exist for some data sets.

D. it is undefined if any X values are 0 or negative.

Range ignores all but the extremes.

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

97. Which is a characteristic of the standard deviation?

A. It is not greatly affected by outliers.

B. It is measured in the same units as the

mean.

C. It measures dispersion around the median.

D. It has a natural, concrete

meaning.

Although we square the deviations around the mean, we take the square root of the sum to get back to the original units of
X. However, the standard deviation is affected by outliers and its interpretation may be nonintuitive.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

98. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the geometric mean is:

A. 2.158.

B. 1.545.

C. 2.376.

D. 3.017.

Take the 12th root of the product (32,400) to get 2.376.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

99. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is:

A. 2.

B. 3.

C. 3.5.
 D. 2.5.

Sort and look halfway between the two middle data values.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

100. Twelve randomly chosen students were asked how many times they had missed class during a certain semester, with this
result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which measure of center is least representative of the "typical"
student?

A. Mean

B. Median

C. Mode

D. Midrange

The unusual data value pulls up the mean (3.75) but affects the midrange (1 + 18)/2 = 9.5 even more noticeably.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

101. Here are statistics on order sizes of Megalith Construction Supply's shipments of two kinds of construction materials last
year.

Which order sizes have greater variability?

A. Girders

B. Rivets

C. They are the same.

D. Cannot be determined without knowing

n

Calculate the coefficient of variation. For girders, the CV = 100 × s/ = 100 × (48)/(160) = 30.00%, while for rivets, CV =
100 × s/ = 100 × 702/2800 = 25.07.
 AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

102. The quartiles of a distribution are most clearly revealed in which display?

A. Box plot

B. Scatter plot

C. Histogram

D. Dot plot

The histogram, scatter plot, or dot plot will not directly show quartiles.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

103. The sum of the deviations around the mean is:

A. greater than zero if data are right-skewed.

B. smaller when the units are smaller (e.g., milligrams versus kilograms).

C. always
zero.

D. dependent on the sample

size.

Sum must be zero unless you calculated the mean incorrectly.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability
104. What does the graph below (profit/sales ratios for 25 Fortune 500 companies) reveal?

A. That the median exceeds the

mean.

B. That the data are slightly left-skewed.

C. That the interquartile range is about

8.

D. That the distribution is

bell-shaped.

Box is skewed right, so mean probably exceeds the median. The IQR is about 12 - 4 = 8.

AACSB: Analytical Thinking

Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

105. Find the sample correlation coefficient for the following data.

A. .8911

B. .9132

C. .9822

D. .9556

You could use Excel's =CORREL(XData,YData).

 AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-09 Calculate and interpret a correlation coefficient and covariance.
Topic: Correlation and Covariance

106. Heights of male students in a certain statistics class range from Xmin = 61 to Xmax = 79. Applying the Empirical Rule, a
reasonable estimate of σ would be:

A. 2.75.

B. 3.00.

C. 3.25.

D. 3.50.

One-sixth of the presumed 6σ range would be (79 - 61)/6 = 3.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

107. A reporter for the campus paper asked five randomly chosen students how many occupants, including the driver, ride to
school in their cars. The responses were 1, 1, 1, 1, 6. The coefficient of variation is:

A. 25
percent.

B. 250
percent.

C. 112 percent.

D. 100
percent.

You first have to calculate the mean and standard deviation.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

108. A smooth distribution with one mode is negatively skewed (skewed to the left). The median of the distribution is $65. Which
of the following is a reasonable value for the distribution mean?

A. $76

B. $54

C. $81
 D. $65

Mean is expected to be less than the median due to left-skewness.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

109. In a positively skewed distribution, the percentage of observations that fall below the median is:

A. about 50 percent.

B. less than 50 percent.

C. more than 50
percent.

D. can't tell without knowing n.

Median always puts about half above and half below.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

110. Which is a weakness of the mode?

A. It does not apply to qualitative data.

B. It is inappropriate for continuous data.

C. It is hard to calculate when n is small.

D. It is usually about the same as the median.

Mode is helpful for categorical data and is easy to calculate in small samples, but requires sorting the sample. Continuous
(decimal) data generally have no mode, or, if a mode exists, it is often not near the center.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

111. The mode is least appropriate for:

A. continuous
data.

B. categorical
data.

C. discrete data.

D. Likert scale data.

Mode is good for discrete or categorical data but fails for continuous data.

112 Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck. This box plot of
Craig's MPG on 195 tanks of gas does not support which statement?

A. There are several outliers.

B. This is a very right-skewed distribution.

C. Most MPG values are concentrated in a narrow range.

D. The interquartile range is less than 2 MPG.

Narrow box. With outliers in both tails, it's unclear which way skewness would be.

N = 195

Outlier = 8.6; 10.2; 17; 18; and 21.2

Xmin = 10.4; Q1 = 12.2; Q2 = 13; Q3 = 13.4; Xmax = 15

IQR = Q3 – Q1 = 13.4 – 12.2 = 1.2 MPG (Sentence D is true)

Range = x max – x min = 15 – 10.4 = 4.6 MPG (narrow range: C is true)

Box plot: 4 groups

Group % data
 X min to Q1 25%

Q1 to Q2 25%

Q2 to Q3 25%

Q3 to X max 25%

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

113. Estimate the mean exam score for the 50 students in Prof. Axolotl's class.

A. 59.2

B. 62.0

C. 63.5

D. 64.1

Apply the formulas for weighted average using interval midpoint multiplied by frequency.
 AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-10 Calculate the mean and standard deviation from grouped data.
Topic: Grouped Data

114. A survey of salary increases received during a recent year by 44 working MBA students is shown. Find the approximate
mean percent raise.

A. 6.56

B. 6.74

C. 5.90

D. 6.39

Apply the formulas for weighted average using interval midpoint multiplied by frequency.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-10 Calculate the mean and standard deviation from grouped data.
Topic: Grouped Data

115. The following frequency distribution shows the amount earned yesterday by employees of a large Las Vegas casino.
Estimate the mean daily earnings.

A. $112.50

B. $125.01

C. $105.47

D. $117.13

Apply the formulas for weighted average using interval midpoint multiplied by frequency.
 AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-10 Calculate the mean and standard deviation from grouped data.
Topic: Grouped Data

116. The following table is the frequency distribution of parking fees for a day:

The mean parking fee is:

A. $7.07.

B. $6.95.

C. $7.00.

D. $7.25.
Apply the formulas for weighted average using interval midpoint multiplied by frequency.
 AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-10 Calculate the mean and standard deviation from grouped data.
Topic: Grouped Data

117. Find the standard deviation of this sample: 4, 7, 9, 12, 15.

A. 4.550

B. 3.798

C. 4.278

D. 2.997

Use the sample formula or Excel's =STDEV.S(Data).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

118. The 25th percentile for waiting time in a doctor's office is 10 minutes. The 75th percentile is 30 minutes. Which is incorrect
regarding the fences?

A. The upper inner fence is 60 minutes.

B. The upper outer fence is 90 minutes.

C. A waiting time of 45 minutes would be an outlier.

D. The lower fences are not relevant in this problem.

 Add 1.5 times the interquartile range to the third quartile to get the upper inner fence. Add 3.0 times the interquartile range
to the third quartile to get the upper outer fence. An outlier is beyond the inner upper fence.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

119. Five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home sold for $2.5
million. Which measure of central tendency best represents a typical home price in Oxnard Acres?

A. The mean or
median.

B. The median or
mode.

C. The mean or mode.

D. The midrange or mean.

Outliers will affect the mean or midrange.

Summary:

5 homes

● 4 homes sold for $400,000

● 1 home sold for $2.5 million (outliers)

Mean, midrange should be avoided

Mean = (400,000*4 + 2.5 million)/5 =

Midrange = (400,000 + 2.5 million)/2 =

Median or mode are not affected by outliers.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

120. In Tokyo, construction workers earn an average of ×420,000 (yen) per month with a standard deviation of ×20,000, while in
Hamburg, Germany, construction workers earn an average of €3,200 (euros) per month with a standard deviation of €57.
Who is earning relatively more, a worker making ×460,000 per month in Tokyo or one earning €3,300 per month in
Hamburg?

A. The workers are the same in relative terms.

B. The Tokyo worker is relatively better off.

C. The Hamburg worker is relatively better off.

 Calculate and compare the z-score for each nation's workers. For Tokyo, z = (x - μ)/σ = (460000 - 420000)/(20000) = 2.00,
while for Hamburg, z = (x - μ)/σ = (3300 - 3200)/57 = 1.75. Therefore, wages for this worker are higher in Tokyo.

Summary:

Tokyo: μ1 = 420,000 (yen) and SD1 = 20,000 yen

Hamburg: μ2 = 3,200 (euros) and SD2 = 57 (euros)

It is hard to compare between yen and euros -> STANDARDISED DATA

● a worker making ×460,000 per month in Tokyo (x1 = 460,000 yen) -> z1 = (460,000-420,000)/20,000 = 2
● a worker making €3,300 per month in Hamburg ( x2 = 3,300) -> z2 = (3,300 – 3,200)/57 = 1.75

z1 than z2 -> person in Tokyo

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-06 Transform a data set into standardized values.
Topic: Standardized Data

121. Which statement is false? Explain.

A. If μ = 52 and σ = 15, then X = 81 would be an outlier.

B. If the data are from a normal population, about 68 percent of the values will be within μ ± σ.

C. If μ = 640 and σ = 128, then the coefficient of variation is 20 percent.

Calculate the z-score to detect outliers: z = (x - μ)/σ = (81 - 52)/(15) = 1.93, which is not an outlier, while the CV is 100 ×
σ/μ = 100 × 128/640 = 20%.

Giả sử z = -2.37, so this is unusual? YES

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-06 Transform a data set into standardized values.
Topic: Standardized Data
122. Which is not a measure of variability?

A. Mean absolute deviation

(MAD)

B. Standard deviation

C. Midhing
e

D. Interquartile range

The midhinge measures center, not variability.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

123. If Q1 = 150 and Q3 = 250, the upper fences (inner and outer) are:

A. 450 and
600.

B. 350 and
450.

C. 400 and
550.

D. impossible to determine without more

information.

Add 1.5 times the interquartile range to the third quartile to get the upper inner fence. Add 3.0 times the interquartile range
to the third quartile to get the upper outer fence.

IQR = Q3 – Q1 = 250 -150 = 100

Upper fence (inner) = Q3 + 1.5*IQR = 250 + 1.5*100 = 400

Upper fence (outer) = Q3 + 3*IQR = 250 + 3*100 = 550

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots
124. Variables X and Y have the strongest correlation in which scatter plot?

A. Figure
A.

B. Figure
B.

C. They are about the same.

Except for sign, the correlations appear roughly the same.

AACSB: Analytical Thinking

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 04-09 Calculate and interpret a correlation coefficient and covariance.
Topic: Correlation and Covariance

125. Which of the following statements is likely to apply to the incomes of 50 randomly chosen taxpayers in California?

A. The median income would probably be near the mean.

B. The midhinge would be a robust measure of center.

C. The sum of squared deviations about the mean would be negative.

D. Outliers in either tail would be equally likely.

Data will be extremely skewed by a few very rich taxpayers.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

126. A certain health maintenance organization (HMO) examined the number of office visits by each of its members in the last
year. For this data set, we would anticipate that the geometric mean would be

A. a reasonable measure of center.

B. zero because some HMO members would not have an office visit.

C. too high because the distribution is likely to be skewed to the left.

 D. negative because some data values would be below the mean.

Zeros would exist for those who had no office visits, so the geometric mean would be zero.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

127. Three randomly chosen Colorado students were asked how many times they went rock climbing last month. Their replies
were 5, 6, 7. The coefficient of variation is:

A. 16.7
percent.

B. 13.6
percent.

C. 20.0
percent.

D. 35.7
percent.

Calculate mean and standard deviation first.

(CV = 100 * s/x where s: standard deviation, x = mean

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

128. The mean of a population is 50 and the median is 40. Which histogram is most likely for samples from this population?

A. Sample
A.

B. Sample
B.

C. Sample C.

Mean exceeds median so skewed right.

(SUMMARY: mean > median : skewed right)

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

129. If Excel's sample skewness coefficient is positive, we conclude that

A. the population is skewed to the right, if the sample size is small.

B. the population is symmetric, as long as the sample size is very large.

 C. the coefficient is within the range of chance for a symmetric population.

D. we should consult a table of percentiles that takes sample size into consideration.

We have tables that show the expected range of expected variation for a sample skewness coefficient for various sample
sizes from a symmetric, normal population.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

130. If Excel's sample kurtosis coefficient is negative, we conclude that

A. the population is platykurtic, as long as the sample size is small.

B. the population is leptokurtic, as long as the sample size is large.

C. the coefficient is within the range of chance for a symmetric population.

D. we should consult a table of percentiles that takes sample size into consideration.

We have tables that show the expected range of expected variation for a sample kurtosis coefficient for various sample
sizes from a normal population.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

Short Answer Questions

131. In Osaka, Japan, stock brokers earn ×6000 per hour on the average, with a standard deviation of ×1200. In Stuttgart,
Germany, stock brokers earn an average of €18 per hour with a standard deviation of €6. In which country is the variation
in wages greatest?

Osaka CV = 25 percent, Stuttgart CV = 33.3 percent, so variation is greater in Stuttgart.

Feedback: Osaka CV = 20 percent, Stuttgart CV = 33.3 percent, so variation is greater in Stuttgart. The point is to show
that you cannot assess relative variation based solely on the standard deviation when the units of measurement differ. (You
have to look also at the mean.)

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability
132. Find the coefficient of variation of these numbers: 14, 17, 17, 19, 26. Would the variability of those numbers be greater
than, less than, or the same as the variability of 24, 27, 27, 29, 36? Defend your answer.

Relative variation is greater in the first sample.

Feedback: First sample: mean = 8.6, standard deviation = 4.5055, CV = 24.25 percent. Second sample: mean = 28.6,
standard deviation = 4.5055, CV = 15.75 percent. The standard deviations are the same, but the relative variation is
greater in the first sample because the mean is smaller.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

133. Ten randomly chosen students at a certain university were asked how many times they smoked marijuana during the
preceding week. Their answers were 0, 8, 0, 0, 2, 4, 0, 0, 6, 0. A campus newspaper article appeared, with the headline
"Average Student Uses No Pot." Is this a fair assessment of central tendency? Discuss the alternatives.

Mode and median are 0, but the mean is 2. Geometric mean is zero due to zeros.

Feedback: Mode and median are 0, but the mean is 2. It is correct that 6 out of 10 students used no marijuana, but to say
that the "average" is zero ignores the four users who bring up the mean. The geometric mean is useless since it is zero
whenever the data set contains zero.

AACSB: Analytical Thinking

Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

134. Twelve students were asked how many credit cards they owned. The responses were 0, 0, 1, 2, 2, 3, 3, 4, 4, 5, 5, 11. (a)
Find the mean, median, and mode. (b) Which measure of center seems best in this case? (c) Find the first and third
quartiles. What do they tell you?

(a) Mean is 3.33, median is 3, mode is not unique; (b) The mean is slightly influenced by the highest data value, but is not
greatly different than the median. (c) Quartiles depend on which method is used (e.g., Minitab gives 1.25 and 4.75).

Feedback: Mean is 3.33, median is 3. The mode is useless because 0, 2, 3, 4, and 5 each occur twice. In this case the
mean or median gives a reasonable indication of what is "typical." Using the method of medians, Q1 = 1.5 and Q3 = 4.5.
The method of medians only requires sorting the data, finding the median, and then finding the median of the observations
below the median and the median of the observations above the median. Excel and Minitab may use different methods of
calculating quartiles. Excel's =QUARTILE.INC would give 1.75 and 4.25; Minitab would give 1.25 and 4.75, while Excel's
=QUARTILE.EXC will agree with Minitab.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center
135. Eleven students were asked how many siblings they had. The responses were 0, 1, 2, 2, 2, 2, 2, 3, 3, 4, 5. Find the mean,
median, mode, and geometric mean. Which would you prefer in this case, and why not the others?

Mean is 2.364, median is 2, mode is 2.

Feedback: Mean is 2.364, median is 2, mode is 2. Any of these conveys a reasonable idea of the "typical" student. The
median is representative of the data, but a good case can also be made for the mode (5 of 10 students had 2 siblings).
There are no outliers, so the mean is not badly distorted (but 7 are below it and 4 above it). Only the mean reflects the fact
that an "average" family has more than two children. The geometric mean is unhelpful because of the zero in the data set.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

136. Patient waiting times in the Tardis Orthopedic Clinic have a mean of 50 minutes with a standard deviation of 25 minutes.
Within what range would approximately 95 percent of the waiting times lie if we were sampling a normal distribution? Do
you think the distribution is likely to be normal? Explain.

By the Empirical Rule, range is 0 to 100 minutes, but waiting times may be skewed by a few long waits (nonnormal).

Feedback: By the Empirical Rule, 50 ± (2)(25) gives a range of 0 to 100 minutes. However, the E.R. assumes normality,
which is unlikely for waiting times (probably right-skewed by a few unusually long waits). The large standard deviation likely
is due to outliers.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

137. The athletic departments at 10 randomly selected U.S. universities were asked by the Equal Employment Opportunity
Commission to state what percentage of their nursing scholarships were presently held by women. The responses were 5,
4, 2, 1, 1, 2, 10, 5, 5, 5. Find the mean, median, mode, and geometric mean. Which is the most appropriate measure of
central tendency? The least appropriate? Explain your answer. Is there an outlier?

Mean is 4, median is 4.5, mode is 5, geometric mean is 3.1623. The boxplot shows that 10 is an outlier but not an extreme
outlier (based on the fences criterion for outliers).

Feedback: Mean is 4, median is 4.5, mode is 5, geometric mean is 3.1623. For this data set, an argument can be made for
each of these measures of central tendency. The mean or median would probably be most "typical," although the mode
does represent 4 of the 10 observations. The geometric mean downplays the outlier (10) but is not really "typical" of any
university. The boxplot shows that 10 is an outlier but not an extreme outlier (based on the fences criterion for outliers).
 AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

138. A survey of 10 randomly chosen drivers showed the following number of persons per car, including the driver: 1, 5, 1, 5, 2,
1, 1, 1, 2, 1. Describe the center, variability, and skewness for this sample.

Mean is 2, median is 1, mode is 1. Data are right-skewed.

Feedback: Mean is 2, median is 1, mode is 1. For this sample, the mode (6 of 10) most clearly characterizes the "typical"
car occupancy, which is also true of the median. However, only the mean would indicate that more than one person is
actually traveling, on average. The geometric mean is 1.585, which is not especially helpful but does downplay the two 5's.
Data are right-skewed.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Numerical Description

139. A national survey showed that most commuter cars contain only the driver. Hungry for a story, a campus newspaper
reporter asked five randomly chosen commuter students how many occupants, including the driver, rode to school in their
cars. Their responses were 1, 1, 1, 1, and 6. The next day a story appeared in the paper headlined "University Commuters
Double National Average Ridership." Is this a reasonable assessment of central tendency? How would you characterize
the variability of the sample?

The mean is 2, median is 1, and mode is 1. Coefficient of variation (112 percent) indicates high dispersion (standard
deviation exceeds the mean).

Feedback: The mean is 2, median is 1, and mode is 1. While technically correct, the paper's story is misleading since 80
percent of the cars contained only one occupant. Data are extremely right-skewed. The standard deviation is 2.236, so the
coefficient of variation (112 percent) indicates very high dispersion (standard deviation exceeds the mean).

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability
140. A 10-point quiz was given by Professor Ennuyeaux. Of the 10 students in the class, half got zero and the others got perfect
scores. List the students' scores. Then find the mean, median, mode, and geometric mean of their scores. Which is the
most appropriate measure of center? The least appropriate?

Mean is 5, median is 5, bimodal (0, 10), geometric mean is 0.

Feedback: 0, 0, 0, 0, 0, 10, 10, 10, 10, 10. Mean is 5, median is 5, bimodal (0, 10). Geometric mean is zero (useless due to
zeros in the data set). There is no "typical" or correct description of central tendency since there is no centrality in the data.
In such cases, stick with the mean and median but add a verbal caveat about the extremely bimodal nature of the data.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center

141. The owner of a chicken farm kept track of each hen's eating and egg production for many months, with the results below.
Which has more variation, feed consumption or egg output?

Feed CV = 14.3 percent, egg CV = 25.0 percent. Egg production is more variable.

Feedback: Feed CV = 14.3 percent, egg CV = 25.0 percent. Egg production is more variable. Problem illustrates that when
units of measurement or means differ, you cannot use the standard deviation to compare variation.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

142. Below are the ages of 21 CEOs. Find the mean, median, and mode. Are there any outliers? Explain.
46, 48, 49, 49, 50, 52, 54, 55, 57, 57, 58, 59, 60, 61, 62, 62, 63, 63, 65, 67, 75

Mean is 57.714, median is 58, four modes (49, 57, 62, 63). Standard deviation is s = 7.233. No outliers, but there is one
unusual data value at 75.

Feedback: Mean is 57.714, median is 58, four modes (49, 57, 62, 63). Standard deviation is s = 7.233. No outliers, but
there is one unusual data value at 75. Its standardized value is z = (75 - 57.714)/7.233 = 2.39. Using the method of
medians, Q1 = 51, Q2 = 58, Q3 = 62.5, students could also construct fences.
 AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 1 Easy
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

143. Bob's sample of freshman GPAs showed a mean of 2.72 with a standard deviation of 0.31. (a) What range would you
predict for all the grades? For the middle 95 percent? Explain. (b) Why might your estimates be inaccurate?

By the Empirical Rule, we expect the middle 95 percent between μ - 2σ and μ + 2σ (2.10 and 3.34) and all the GPAs
between μ - 3σ and μ + 3σ (1.79 and 3.65). The E.R. is based on the normal distribution, so could be inaccurate if grades
are skewed.

Feedback: By the Empirical Rule, we expect the middle 95 percent between μ - 2σ and μ + 2σ (2.10 and 3.34) and all the
GPAs between μ - 3σ and μ + 3σ (1.79 and 3.65). The E.R. is based on the normal distribution, so could be inaccurate if
grades are skewed. If there is skewness, it is more likely to be to the left since many hard-working students will earn GPAs
in the range 3.00 to 4.00, while very few will be below 2.00 (but a few really poor performers could pull the mean down,
since GPA could even be 0.00).

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data
144. A team of introductory statistics students went to a grocery store and recorded the total calories and fat calories for various
kinds of soup. They produced a table of statistics and two dot plots. Write a succinct summary of the center, variability, and
shape for each data set. Note: TrimMean is the 5 percent trimmed mean (removing the smallest 5 percent and the largest
5 percent of the values, rounded to the nearest integer).

Both are right-skewed (mean > median) though not greatly so, judging from the dot plots. Trimmed mean is only slightly
less than the mean, suggesting that we don't have too many extreme values. However, on the Calories dot plot there is
one outlier because z = (180 - 96.63)/26.91 = 3.10.

Feedback: Both are right-skewed (mean > median) though not greatly so, judging from the dot plots. In each case, the
trimmed mean is only slightly less than the mean, suggesting that we don't have too many extreme values. However, on
the Calories dot plot there is one extreme value, which turns out to be an outlier since its standardized score is z = (180 -
96.63)/26.91 = 3.10. Better students will notice more details and aspects of the data and discuss them.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center
145. Here are descriptive statistics from Excel for annual per-pupil expenditures in 94 Ohio cities and home sizes in a certain
neighborhood. Very briefly compare the variability and shape of the two data sets.

Expenditure per pupil is right-skewed (mean > median), skewness coefficient is also high; home size is practically
symmetric (mean ≅ median) and has skewness near zero. Expenditure per pupil has at least one severe outlier z = 7.76,
while home size has no outliers but one unusual value at z = 2.71.

Feedback: Expenditure per pupil is right-skewed (mean > median), and the skewness coefficient is also high. Home size is
practically symmetric (mean ≅ median) and has skewness near zero, though many students will say it's right-skewed. (It is
important to realize that skewness is a matter of degree, not a "yes-no" decision.) The modes are unhelpful since both data
sets are continuous measurements. The CVs indicate that expenditure per pupil has much greater dispersion (40.2
percent) than home size (11.2 percent). Expenditure per pupil has at least one severe outlier at z = (11,226 -
2724.61/1095.22) = 7.76, while home size has no outliers but one possibly unusual value at z = (2908 - 2231.41/249.32) =
2.71. Better student answers will notice and discuss more of the data features, perhaps attempting to draw a histogram.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center
146. Below are shown a dot plot and summary statistics for a random sample of 34 shower heads. The measurements are
maximum flow rates (in gallons per minute) at pressure of 80 pounds per square inch. Use the data to illustrate the
difference between the two alternative definitions of "outlier," and make any other comments you feel are relevant. Note:
TrimMean removes the smallest 5 percent and the largest 5 percent of the values.

Upper inner fence is 3.5, upper outer fence is 4.1, so by these definitions, three (maybe four) data points are "unusual"
(above the upper inner fence) and three are outliers (beyond the upper outer fence).

Feedback: Requires definitions of fences. The upper inner fence is Q3 + 1.5(Q3 - Q1) = 2.9 + 1.5(2.9 - 2.5) = 3.5, while the
upper outer fence is Q3 + 3.0(Q3 - Q1) = 2.9 + 3.0(2.9 - 2.5) = 4.1. By these definitions, three (maybe four) data points are
"unusual" (above the upper inner fence) and three are outliers (beyond the upper outer fence). Using the standardized
variable definition, the cutoff for an "unusual" data point is = 2.882 + 2(0.750) = 4.382 (which includes 3 data
points), while the cutoff for an "outlier" is = 2.882 + 3(0.750) = 5.132 (which includes 1 data point). Therefore, the
definitions generally agree on what is "unusual" but not on what constitutes an "outlier."

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots
147. Briefly describe these data. Sketch its box plot and describe the sample succinctly.

Skewed right (mean > median), at least one outlier at z = 3.22, box plot will be skewed right and asymmetric.

Feedback: Skewed right (mean > median) as reflected also in the trimmed mean (below the mean). There is at least one
outlier, whose standardized score is z = (49 - 12.89)/11.23 = 3.22. Box plot will be skewed right (long right whisker) and has
asymmetric "box" whose upper half (Q2 to Q3) is wider than its lower half (Q1 to Q2). The picture is that in most Rose Bowl
games, the winning margin tends to be small, but in a few games there was a "blowout" that raises the mean. Astute
students may notice the 0 and ask how the winning margin can be zero. (In 1922, Washington and Jefferson played
California to a scoreless tie, this being before the "sudden death" overtime had been established.)

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots
148. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck. Describe
Craig's gasoline mileage based on this histogram of 195 tanks of gas.

Fairly symmetric, yet a few high values will draw up the mean.

Feedback: Fairly symmetric. A few high values exist (they could be outliers, but we would need standard deviation or
quartiles to say for sure). Astute students could apply the Empirical Rule to estimate σ = (XMax - XMin)/6, or σ = (XMax - XMin)/4
and try to check for outliers, but this would not be expected. Some will suggest that the data are normal but there were
data measurements (e.g., three tanks erred on the high side, one on the low side).

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

149. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck. Describe
Craig's gasoline mileage based on this box plot of 195 tanks of gas.

Range is from just under 9.0 to just over 21.0; typical gas mileage is concentrated near 13 mpg, with the middle 50 percent
between about 12.5 and 13.5 (middle of the "box"); two unusual data values on low end and three on high end (beyond
inner fences).

Feedback: Range is from just under 9.0 to just over 21.0. Typical gas mileage is concentrated near 13 mpg, with the middle
50 percent between about 12.5 and 13.5 (middle of the "box"). Symmetric except for one data point in right tail. Two
unusual data values on low end and three on high end (beyond inner fences). On the high end, two are outliers (beyond
outer fence). Requires knowing definitions of fences.
 AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

150. Here are advertised prices of 21 used Chevy Blazers. Describe the distribution (center, variability, shape).

Range is from 7,000 to almost 18,000; median is around 11,500; interquartile range is about 11,000 to 14,000, with
right-skewness.

Feedback: Range is from 7,000 to almost 18,000. Median is around 11,500 with interquartile range about 11,000 to 14,000.
Right-skewed, based on the extremely asymmetric box, but whiskers are roughly symmetric. Mean would probably be well
above the median, based on skewness. Requires knowing how to read quartiles from a box plot.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

151. Briefly describe this sample of departure delays on American Airlines flights out of Denver over a seven-day period, March
3-9 (n = 149 flights).

Short left whisker, skewed right. Most data are packed into a very narrow range, but there are 14 outliers (above the upper
fence) and 3 or 4 more above the inner fence.

Feedback: An early departure ("pushback after doors closed") can occur once a plane is fully loaded. In this data set,
flights departed up to 6 minutes early. The short left whisker and narrow box show that most data values are packed into a
very narrow range. The quartiles Q1, Q2, and Q3 are near -5 (i.e., flights typically push back about 5 minutes early). Only 9
flights departed more than 20 minutes late. There are 14 outliers (above the upper outer fence) and 3 or 4 more above the
upper inner fence. Data are extremely right-skewed. Factors such as weather can cause long departure delays, but for
most flights an early or on-time departure is the norm.
 AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-08 Make and interpret box plots.
Topic: Percentiles, Quartiles, and Box Plots

152. Six graduates from Fulsome University's Master's of Waste Management program were hired by a Saudi Arabian firm at
$110,000 each, while the other four graduates were unemployed. The university placement office bragged, "Our MWM
graduates enjoyed a median starting salary of $110,000." Is this a reasonable assessment of central tendency? What are
the alternatives?

Can't use geometric mean due to zeros, but none of the measures is typical of anyone.

Feedback: The median and mode are 110, but the mean is only 66. We can't use geometric mean due to zeros. Sample is
small, so no measure is very reliable, but an honest placement service would note that 40 percent of the graduates were
unemployed and that the salary was only for those who actually found jobs.

AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 04-02 Calculate and interpret common measures of center.
Topic: Measures of Center