Statistics for business and Economics

First year 2023

Class (9)
Test bank chapter (3)
Mark choice question

1-For which measure of central location will the sum of the deviations of each
value from the data's average will always be zero?
A) Mode
B) Mean
C) Median
D) Geometric mean
E) None of the above

Ans :B

2. For a set of grouped or ungrouped data, which measures of central location always have only
one value?
A) Mode and median
B) Mode and mean
C) Mode and geometric mean
D) Mean and median

Ans:D

3. Which measures of central location are not affected by extremely small or extremely large values?
A) Mean and median
B) Mean and mode
C) Mode and median
D) Geometric mean and mean
E) None of the above

Ans: C

4. For a data set, half of the observations are always greater than the ________ .
A) Median
B) Mode
C) Mean
D) Geometric mean

Ans:A

5- For an ungrouped data set with an odd number of observations that have been
sorted or arrayed from smallest to largest values, where is the median located?
A) n

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 Statistics for business and Economics
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B) n/2
C) (n + 1)/2
D) n + 1/2

Ans: C

6. Which one of the following is referred to as the population mean?

A) Statistic
B) parameter
C) Sample
D) None of the above

Ans: B

7. Fifteen accounting majors had an average grade of 90 on a finance exam. Seven marketing majors
averaged 85, while ten finance majors averaged 93 on the same exam. What is the weighted mean for the 32
students taking the exam?
A) 89.84
B) 89.33
C) 89.48
D) Impossible to determine without more information

Ans: A

8- . In the calculation of the arithmetic mean for grouped data, which value is used
to represent all the values in a particular class?
A) The upper limit of the class
B) The lower limit of the class
C) The frequency of the class
D) The cumulative frequency preceding the class
E) The class midpoint.

Ans : E

9. On a survey questionnaire, students were asked to indicate their class rank in college. If there were only
four choices from which to choose, which measure(s) of central location would be appropriate to use for
the data generated by that questionnaire item?
A) Mean and median
B) Mean and mode
C) Mode and median
D) Mode only
E) Median only

Ans : C

10. What is the median of 26, 30, 24, 32, 32, 31, 27 and 29?
A) 32
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B) 29
C) 30
D) 29.5

Ans : D

11. The net incomes (in $ millions) of a sample of steel fabricators are: $86, $67, $86 and $85. What is
the modal net income?
A) $67 B) $85 C) $85.5 D) $86
Ans:D

12- A sample of single persons receiving social security payments revealed these monthly benefits: $826,
$699, $1,087, $880, $839 and $965. How many observations are below the median?
A) 0 B) 1 C) 2 D) 3 E) 3.5
Ans: D

13. The number of work stoppages in a highly industrialized region for selected months are: 6, 0,
10, 14, 8 and 0. What is the median number of stoppages?
A) 0 B) 6 C) 7 D) 8 E) 3
Ans C

14. The U.S. Department of Education reported that for the past seven years 4,033, 5,652, 6,407, 7,201,
8,719, 11,154, and 15,121 people received bachelor's degrees in computer and information sciences. What
is the annual arithmetic mean number
of degrees awarded?
A) About 12,240
B) About 8,327
C) About 6,217
D) About 15,962

15. Which measure of central location is found by arranging the data from
smallest to largest and selecting the middle value?

A) Arithmetic mean B) Median C) Mode D) Geometric mean

E) Standard deviation
Ans :B

16. A question in a market survey asks for a respondent's favorite car color.
Which measure of central location should be used to summarize this question?

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A) Mode
B) Median
C) Mean
D) Geometric mean

Ans : A

17- Sometimes, data has two values that have the highest and equal frequencies.
In this case, the distribution of the data can best be summarized as
A) symmetric
B) bimodal (having two modes)
C) positively skewed
D) negatively skewed

Ans: B

18. A disadvantage of using an arithmetic mean to summarize a set of data is

A) The arithmetic mean sometimes has two values
B) It can be used for interval and ratio data
C) It is always different from the median
D) It can be biased by one or two extremely small or large values.

Ans: D

19. The denominator for a mean of grouped data is:

A) N, the population size
B) n, the sample size
C) The sum of the group frequencies
D) The number of groups

Ans :C

20. The mean, as a measure of central location would be inappropriate for which one of the following?
A) Ages of adults at a senior citizen center
B) Incomes of lawyers
C) Number of pages in textbooks on statistics
D) Marital status of college students at a particular university

Ans : D

21. What is a disadvantage of the range as a measure of dispersion?

A) Based on only two observations
B) Can be distorted by a large mean
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C) Not in the same units as the original data

D) Has no disadvantage

Ans : A

22. The sum of the differences between sample observations and the sample mean is
A) Zero
B) The mean deviation
C) The range
D) The standard deviation

Ans A

23. What is the lowest level of measurement that a median can be computed?
A) Nominal
B) Ordinal
C) Interval
D) Ratio

Ans : B

24. If a frequency distribution has open-ended intervals at the extremes, which

measure of central location is the most difficult to estimate?
A) Median
B) Mode
C) Mean
D) All of the above
E) None of the above

Ans : C
C 25. Statistical measures used to yield information about the middle of a group of numbers are
called _______.

E A. averages
Term B. measures of variability
C. measures of central tendency
D. Z scores

C 26. Which of the following is NOT a measure of central tendency?

E A. mean
Term B. median

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C. variance
D. mode

A 27. The most frequently occurring value in a set of data is called the _______.

E A. mode
Term B. mean
C. median
D. coefficient of variation

A 28. Which of the following is an appropriate measure of central tendency for nominal
data?

E A. mode
Term B. mean
C. median
D. coefficient of variation

C 29. Which of the following is an appropriate measure of central tendency for ordinal
data?

E A. standard deviation
Term B. mean
C. median
D. coefficient of variation

C 30. The lowest appropriate level of measurement for the mean is _________.

E A. nominal
Term B. ordinal
C. interval
D. ratio

B 31 The lowest appropriate level of measurement for the median is _________.

E A. nominal
Term B. ordinal
C. interval
D. ratio

A 32. The lowest appropriate level of measurement for the mode is _________.

E A. nominal
Term B. ordinal
C. interval D. ratio

C 33 The middle value in an ordered array of numbers is called the _______.

E A. mode

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Term B. mean
C. median
D. coefficient of variation

B 34 Another term for average is _______.

E A. mode
Term B. mean
C. median
D. variance

C 35 The Greek letter usually refers to the _______.

E A. population standard deviation

Term B. sample variance
C. population mean
D. sample mean

D 36.The notation usually refers to the _______________.

E A. population standard deviation

Term B. sample variance
C. population mean
D. sample mean

B 37.A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 72. What is
the mean grade?

M A. 78
Calc B. 80
C. 72
D. 84
C 38.A statistics student made the following grades on 5 tests: 84, 78, 88, 72, and 72.
What is the median grade?

M A. 88
Calc B. 72
C. 78
D. 80

A 39. A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 82.
What is the mode?

A. 78 B. 80
C. 88 D. 84

D 40. A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The mean time required for this trip was _______.

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M A. 35
Calc B. 41
C. 37.5
D. 38

A 41. A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The median time required for this trip was _______.

M A. 39
Calc B. 41
C. 37.5
D. 38

B 42. A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The modal time required for this trip was _______.

E A. 39
Calc B. 41
C. 37.5
D. 38

B 43.The ages of students in a class have been put into the frequency distribution below.
Age Number of Students
18 3
19 5
20 28
21 4
What is the average age of these students?

M A. 19.50
Calc B. 19.85
C. 20.00
D. 28.00

D 44.The ages of students in a class have been put into the frequency distribution below.
Age Number of Students
18 3
19 5
20 28
21 4
What is the median age of these students?

A. 18 B. 19 C. 19.5 D. 20

C 45.The ages of students in a class have been put into the frequency distribution below.
Age Number of Students
18 3
19 5

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 Statistics for business and Economics
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20 28
21 4
What is the modal age of these students?

E A. 18
Calc B. 19
C. 20
D. 21

A 46.The mean, median, and mode for the following set of data are all the same value (20).
Data: 18, 19, 20, 20, 21, 22. If the highest number were changed from 22 to 322, which of the
following would be most affected?

M A. mean
App B. median
C. mode
D. sample size

C 47. An instructor is evaluating the performance of students on a test. He records the

number of points that each student missed and created a frequency distribution.
This is provided below:
Points missed Number of students
0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the mean number of points missed?

H A. 20
Calc B. 25
C. 29
D. 30

48. A sample of light trucks using diesel fuel revealed the following distribution based on fuel efficiency, i.e., miles
per gallon (mpg).

m pg N u m b er o f Tru ck s
10 up to 1 3 2
13 up to 1 6 5
16 up to 1 9 10
19 up to 2 2 8
22 up to 2 5 3
25 up to 2 8 2

What is the arithmetic mean miles per gallon?

A) 16.9 B) 18.6 C) 17.0 D) 17.9 E) None of the above

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Answer: B

49. The ages of newly hired, unskilled employees were grouped into the following distribution:

What is the mean age?

A) 25.51 B) 24.01 C) 26.99 D) 26.58 E) 20.00

Answer: D

50. A sample of the daily production of transceivers was organized into the following distribution.

D aily Production Frequencies

80 up to 90 5
90 up to 100 9
100 up to 110 20
110 up to 120 8
120 up to 130 6
130 up to 140 2

What is the mean daily production?

A) 106.4 B) 101.4 C) 111.4 D) 105.0 E) 20.0

Answer: A

51. A stockbroker placed the following order for a customer:

50 shares of Kaiser Aluminum preferred at $104 a share

100 shares of GTE preferred at $25.25 a share

20 shares of Boston Edison preferred at $9.125 a share

What is the weighted arithmetic mean price per share?

A) $ 25.25 B) $ 79.75 C) $ 103.50 D) $ 46.51

Answer: D

52. During the past six months, the purchasing agent bought:

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To n s o f C o al 1 ,2 0 0 3 ,0 0 0 500
P rice p er To n $ 2 8 .5 0 $ 8 7 .2 5 $ 8 8 .0 0

What is the weighted arithmetic mean price per ton?

A) $87.25 B) $72.33 C) $68.47 D) $89.18 E) 67.92

Answer: B

53. A sample of single persons receiving social security payments revealed these monthly
benefits: $826, $699, $1,087, $880, $839 and $965. How many observations are below the
median?

A) 0 B) 1 C) 2 D) 3 E) 3.5

Answer: D

54. The number of work stoppages in a highly industrialized region for selected months are: 6,
0, 10, 14, 8 and 0. What is the median number of stoppages?

A) 0 B) 6 C) 7 D) 8 E) 3

Answer: C

55. Assume a student received the following grades for the semester: History, B; Statistics, A;
Spanish, C; and English, C. History and English are 5 credit hour courses, Statistics a 4 credit
hour course and Spanish a 3 credit hour course. If 4 grade points are assigned for an A, 3 for a B
and 2 for a C, what is the weighted mean for the semester grades?

A) 4.00 B) 1.96 C) 2.61 D) 3.01 E) 2.88

Answer: C

56. A sample of the paramedical fees charged by clinics revealed these amounts: $55, $49, $50,
$45, $52 and $55. What is the median charge?

A) $47.50 B) $51.00 C) $52.00 D) $55.00

Answer: B

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 Statistics for business and Economics
First year 2023

57- The lengths of time (in minutes) several underwriters took to review applications for similar insurance
coverage are: 50, 230, 52 and 57. What is the median length of time required to review an application?

A) 54.5 B) 141.0 C) 97.25 D) 109.0

Answer: A

58. A bottling company offers three kinds of delivery service – instant, same day and within five days.
The profit per delivery varies according to the kind of delivery. The profit for an instant delivery is less
than the other kinds because the driver has to go directly to a grocery store with a small load and return
to the bottling plant. To find out what effect each type of delivery has on the profit picture, the company
summarized the data in the following table based on deliveries for the previous quarter.

N u m b er o f D eliv eries
Ty p e o f D eliv ery D u rin g th e Q u arter P ro fit p er D eliv ery

In stan t 100 $ 70
S am e d ay 60 100
W ith in fiv e d ay s 40 160

What is the weighted mean profit per delivery?

A) $72 B) $110 C) $142 D) $97 E) $66.67

Answer: D

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