# The performance of personal and business investments is measured as a percentage, return on investment. What type of variable is return on investment?

QNT 275 Statistics For Decision Making Final Exam

1) The main purpose of descriptive statistics is to

A. summarize data in a useful and informative manner

B. make inferences about a population

C. determine if the data adequately represents the population

D. gather or collect data

2) The general process of gathering, organizing, summarizing, analyzing, and interpreting data is called

A. statistics

B. descriptive statistics

C. inferential statistics

D. levels of measurement

3) The performance of personal and business investments is measured as a percentage, return on investment. What type of variable is return on investment?

A. Qualitative

B. Continuous

C. Attribute

D. Discrete

4) What type of variable is the number of robberies reported in your city?

A. Attribute

B. Continuous

C. Discrete

D. Qualitative

5) What level of measurement is the number of auto accidents reported in a given month?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

6) The names of the positions in a corporation, such as chief operating officer or controller, are examples of what level of measurement?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

7) Shoe sizes, such as 7B, 10D, and 12EEE, are examples of what level of measurement?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

8) Monthly commissions of first-year insurance brokers are $1,270, $1,310, $1,680, $1,380, $1,410, $1,570, $1,180, and $1,420. These figures are referred to as

A. a histogram

B. raw data

C. frequency distribution

D. frequency polygon

9) A small sample of computer operators shows monthly incomes of $1,950, $1,775, $2,060, $1,840, $1,795, $1,890, $1,925, and $1,810. What are these ungrouped numbers called?

A. Histogram

B. Class limits

C. Class frequencies

D. Raw data

10) The sum of the deviations of each data value from this measure of central location will always be 0.

A. Mode

B. Mean

C. Median

D. Standard deviation

11) For any data set, which measures of central location have only one value?

A. Mode and median

B. Mode and mean

C. Mode and standard deviation

D. Mean and median

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

13) A dot plot shows

A. the general shape of a distribution

B. the mean, median, and mode

C. the relationship between two variables

D. the interquartile range

14) The test scores for a class of 147 students are computed. What is the location of the test score associated with the third quartile?

A. 111

B. 37

C. 74

D. 75%

15) The National Center for Health Statistics reported that of every 883 deaths in recent years, 24 resulted from an automobile accident, 182 from cancer, and 333 from heart disease. Using the relative frequency approach, what is the probability that a particular death is due to an automobile accident?

A. 24/883 or 0.027

B. 539/883 or 0.610

C. 24/333 or 0.072

D. 182/883 or 0.206

16) If two events A and B are mutually exclusive, what does the special rule of addition state?

A. P(A or B) = P(A) + P(B)

B. P(A and B) = P(A) + P(B)

C. P(A and/or B) = P(A) + P(B)

D. P(A or B) = P(A) – P(B)

17) A listing of all possible outcomes of an experiment and their corresponding probability of occurrence is called a

A. random variable

B. probability distribution

C. subjective probability

D. frequency distribution

18) The shape of any uniform probability distribution is

A. negatively skewed

B. positively skewed

C. rectangular

D. bell shaped

19) The mean of any uniform probability distribution is

A. (b – a)/2

B. (a + b)/2

C. Σ x/ η

D. nπ

20) For the normal distribution, the mean plus and minus 1.96 standard deviations will include about what percent of the observations?

A. 50%

B. 99.7%

C. 95%

D. 68%

21) For a standard normal distribution, what is the probability that z is greater than 1.75?

A. 0.0401

B. 0.0459

C. 0.4599

D. 0.9599

22) A null hypothesis makes a claim about a

A. population parameter

B. sample statistic

C. sample mean

D. Type II error

23) What is the level of significance?

A. Probability of a Type II error

B. Probability of a Type I error

C. z-value of 1.96

D. Beta error

24) Suppose we test the difference between two proportions at the 0.05 level of significance. If the computed z is -1.07, what is our decision?

A. Reject the null hypothesis.

B. Do not reject the null hypothesis.

C. Take a larger sample.

D. Reserve judgment.

25- Which of the following conditions must be met to conduct a test for the difference in two sample means?

Data must be at least of interval scale.

Populations must be normal.

Variances in the two populations must be equal.

Data must be at least of interval scale and populations must be normal.

26- For a hypothesis test comparing two population means, the combined degrees of freedom are 24. Which of the following statements about the two sample sizes in NOT true? Assume the population standard deviations are equal.

Sample A = 11, Sample B = 13

Sample A = 12, Sample B = 14

Sample A = 13, Sample B = 13

Sample A = 10, Sample B = 16

27- What is the chart called when the paired data (the dependent and independent variables) are plotted?

Scatter diagram

Bar chart

Pie chart

Histogram

28- What is the variable used to predict the value of another called?

Independent variable

Bar chart

Pie chart

Histogram

29- Twenty randomly selected statistics students were given 15 multiple-choice questions and 15 open-ended questions, all on the same Material. The professor was interested in determining on which type of questions the students scored higher. This experiment is an example of

a one sample test of means

a two sample test of means

a paired t-test

a test of proportions

30- The measurements of weight of 100 units of a product manufactured by two parallel processes have same mean but the standard of process A is 15 while that of B is 7. What can you conclude?

The weight of units in process A are grouped closer than in process B.

The weight of units in process B are grouped closer than in process A.

Both processes are out of control.

More data is needed to draw a conclusion.