CHAPTER 1-7

1. The scale of measurement that is used to rank order the observation for a variable is
called the
a. ratio scale.
b. ordinal scale.
c. nominal scale.
d. interval scale.

2. Five hundred residents of a city are polled to obtain information on voting intentions in
an upcoming city election. The five hundred residents in this study is an example of a(n)
a. census.
b. sample.
c. observation.
d. Population.

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

4. The weights (in grams) of the contents of several small bottles are 4, 2, 5, 4, 5, 2 and 6.
What is the sample variance?
A. 6.92
B. 4.80
C. 1.96
D.2.33

5. 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.

6. Events A and B are mutually exclusive when:

A.their joint probability is zero.
B. they are independent events.
C. P(A)P(B) = 0
D. P(A)P(B) = P(A | B)

7. Independent events A and B would be consistent with which of the following

statements:
A) P ( A ) = .3, P ( B ) = .5, P ( A u B ) = .4.
B) P ( A ) = .4, P ( B ) = .3, P ( A u B ) = .5.
C)P ( A ) = .4, P ( B ) = .5, P ( A u B ) = .2.
D) P ( A ) = .5, P ( B ) = .4, P ( A u B ) = .3

8. Given the contingency table shown here, find P(V | W).

A. .4000
B. .0950
C..2375
D. .5875

9. The discrete random variable X is the number of students that show up for Professor
Smith's office hours on Monday afternoons. The table below shows the probability
distribution for X. What is the probability that fewer than 2 students come to office
hours on any given Monday?

A. .10
B. .40
C..70
 D. .90

10. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.72) is:
A. 0.9573.
B. 0.0446.
C. 0.5016.
D.0.0427.

Chap 006
50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be
selected at random. At what ticket price would a ticket buyer expect to break even?

A. $0.5
0
B. $0.2
5
C. $0.7
5
D. $1.0
0

51. A die is rolled. If it rolls to a 1, 2, or 3, you win $2. If it rolls to a 4, 5, or 6, you lose $1.
Calculate the expected winnings.

A. $0.5
0
B. $3.0
0
C. $1.5
0
D. $1.0
0

52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6, you lose
$1. Calculate the expected winnings.

A. $0.0
0
B. $1.0
0
C. $0.5
0
D. $0.2
5
53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00,
and if it lands tails you lose $0.50. How much should a ticket to play this game cost if the
carnival wants to break even?

A. $0.2
5
B. $0.5
0
C. $0.7
5
D. $1.0
0

54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO
are bidding for a $900,000 government contract. Each company has an equal chance of
being awarded the contract. If ESCO has already spent $100,000 in developing its
bidding proposal, what is its expected net profit?

A. $100,00
0
B. $90,00
0
C. -
$10,00
0
D. $
0
55. The discrete random variable X is the number of students that show up for Professor
Smith's office hours on Monday afternoons. The table below shows the probability
distribution for X. What is the expected value E(X) for this distribution?

A. 1.
2
B. 1.
0
C. 1.
5
D. 2.
0
27. A discrete probability distribution:

A. is a listing of all possible values of the random

variable.
B. assigns a probability to each possible value of the random
variable.
C. can assume values between -1
and +1.
D. is independent of the parameters of the
distribution.

28. The number of male babies in a sample of 10 randomly chosen babies is a:

A. continuous random
variable.
B. Poisson random
variable.
C. binary random
variable.
D. binomial random
variable.

29. A discrete random variable:

A. can be treated as continuous when it has a large range

of values.
B. cannot be treated as
continuous.
C. is best avoided if at all
possible.
D. is usually uniformly
distributed.
30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of

plywood
B. The number of female passengers who board a
plane
C. The time until failure of a vehicle
headlamp
D. The number of correct answers on a
statistics exam
63. The binomial distribution is symmetrical when:

A. π = 1 and 1 - π =
0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π =
1.

64. The variance will reach a maximum in a binomial distribution when:

A. π = 1 and 1 - π =
0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π =
1.

65. Which distribution is most strongly right-skewed?

A. Binomial with n = 50, π

= .70
B. Binomial with n = 50, π
= .90
C. Binomial with n = 50, π
= .40
D. Binomial with n = 50, π
= .10
66. A random variable is binomially distributed with n = 16 and π = .40. The expected value
and standard deviation of the variables are:

A. 2.00 and
1.24
B. 4.80 and
4.00
C. 6.40 and
1.96
D. 2.00 and
1.20
82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly
chosen day, the Southfield city animal control officer picks up seven stray dogs. What
is the probability that fewer than two will be unlicensed?

A. .868
1
B. .992
1
C. .367
0
D. .007
6

83. The domain of X in a Poisson probability distribution is discrete and can include:

A. any real X
value.
B. any integer X
value.
C. any nonnegative integer X
value.
D. any X value except
zero.
84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is
the probability of fewer than three calls in a randomly chosen minute?

A. .160
7
B. .891
3
C. .267
8
D. .730
6
125 A stock portfolio consists of two stocks X and Y. Their daily closing prices are
. correlated random variables with variances σX2 = 3.51 and σY2 = 5.22, and
covariance σXY = -1.55. What is the standard deviation of the sum of the closing
prices of these two stocks?

A. 5.6
3
B. 7.1
8
C. 8.7
3
D. 2.6
8

126 The expected value of a random variable X is 140 and the standard deviation is 14. The
. standard deviation of the random variable Y = 3X - 10 is:

A. 4
2
B. 6.4
8
C. 1
4
D. 3
2

Chap 004

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.
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. 36.8
2.
C. 5.16
.
D. 22.8
6.
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.
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. 2.60
4
C. 1.51
7
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
.
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.
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.
Chapter 003
37. Which of the following is true?

A. Line charts are not used for cross-

sectional data.
B. Line charts are useful for visualizing
categorical data.
C. Pyramid charts are generally preferred instead of
column charts.
D. Pie charts can generally be used instead of bar
charts.

38. Histograms generally do not reveal the:

A. exact data
range.
B. modal classes
(bins).
C. degree of
skewness.
D. relative
frequencies.

39. A column chart would be least suitable to display which data?

A. Annual compensation of 500 company

CEOs
B. U.S. exports to its six largest trading
partners
C. Exxon-Mobil's quarterly sales for the last
four years
D. One-year CD interest rates paid by the eight largest
U.S. banks
66. The distribution pictured below is:

A. bimodal and skewed

right.
B. bimodal and skewed
left.
C. skewed
right.
D. skewed
left.
67. The distribution pictured below is:

A. bimodal and skewed

right.
B. bimodal and skewed
left.
C. skewed
right.
D. skewed
left.
87. Below is a sorted stem-and-leaf diagram for the measured speeds (miles per hour) of 49
randomly chosen vehicles on highway I-80 in Nebraska. The modal class is:

A. 60 but less than

70.

B. 70 but less than

80.

C. 80 but less than

90.

D. impossible to
determine.
Chapter 002
51. Which variable is least likely to be regarded as ratio data?

A. Length of time required for a randomly chosen vehicle to cross a toll

bridge (minutes)
B. Weight of a randomly chosen student
(pounds)
C. Number of fatalities in a randomly chosen traffic disaster
(persons)
D. Student's evaluation of a professor's teaching
(Likert scale)

52. Which of the following is numerical data?

A. Your
gender
B. The brand of cell phone you
own
C. Whether you have an American Express
card
D. The fuel economy (MPG) of your
car

53. Measurements from a sample are called:

A. statistic
s.
B. inference
s.
C. parameter
s.
D. variable
s.
54. Quantitative variables use which two levels of measurement?

A. Ordinal and
ratio
B. Interval and
ordinal
C. Nominal and
ordinal
D. Interval and
ratio
64. Which of the following is true?

A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is

ordinal data.
B. The duration (minutes) of a flight from Boston to Minneapolis is
ratio data.
C. The number of Nobel Prize-winning faculty at Oxnard University is
continuous data.
D. The number of regional warehouses owned by Jankord Industries is
ordinal data.

65. Which statement is correct?

A. Judgment sampling is preferred to systematic

sampling.
B. Sampling without replacement introduces bias in our estimates of
parameters.
C. Cluster sampling is useful when strata characteristics are
unknown.
D. Focus groups usually work best without a
moderator.

66. A Likert scale:

A. yields interval data if scale distances are

equal.
B. must have an odd number of scale
points.
C. must have a verbal label on each scale
point.
D. is rarely used in marketing
surveys.
Chaper 001
28. Which of the following statements is correct?

A. A parameter is a measure that is calculated from a

sample.
B. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
C. For day-to-day business data analysis, most firms rely on a large staff of expert
statisticians.
D. A statistical test result that is significant also has practical
importance.

29. Which is least likely to be an application where statistics will be useful?

A. Predicting whether an airfare is likely to

rise or fall
B. Designing the most desirable features for a
ski pass
C. Deciding whether offering Rice Krispies improves
restaurant sales
D. Choosing the wording of a corporate policy prohibiting
smoking

30. Because 25 percent of the students in my morning statistics class watch eight or more
hours of television a week, I conclude that 25 percent of all students at the university
watch eight or more hours of television a week. The most important logical weakness of
this conclusion would be:

A. relying on any sample instead of surveying every

student.
B. using a sample that may not be representative of all
students.
C. failing to correct for unconscious
interviewer bias.
D. assuming cause and effect where none
exists.

31. Which of the following is not a characteristic of an ideal statistician?

A. Technically current (e.g.,

software)
B. Communicates well (both written
and oral)
C. Advocates client's
objectives
D. Can deal with imperfect
information
32. Which of the following statements is not true?

A. Statistics helps refine theories through ongoing

hypothesis testing.
B. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
C. Estimating parameters is an important aspect of descriptive
statistics.
D. Statistical challenges include imperfect data and practical
constraints.