BUSINESS STATISTICS EXAMS ACTUAL UPDATED
QUESTIONS AND ANSWERS SURE A+
✔✔Empirical Rule - ✔✔For a symmetrical, bell-shaped frequency distribution,
approximately 68% of the observations will lie within + or -1 standard deviation of the
mean; about 95% of the observations will lie within + or -2 standard deviations of the
mean; and practically all (99.7%) will lie within + or -3 standard deviations of the mean.
✔✔Event - ✔✔A collection of one or more outcomes of an experiment.
✔✔Experiment - ✔✔A process that leads to the occurrence of one and only one of
several possible observations.
✔✔Frequency Distribution - ✔✔A grouping of data into mutually exclusive classes
showing the number of observations in each class.
✔✔Frequency Table - ✔✔A grouping of qualitative data into mutually exclusive classes
showing the number of observations in each class.
✔✔Histogram - ✔✔A graph in which the classes are marked on the horizontal axis and
the class frequencies on the vertical axis. The class frequencies are represented by the
heights of the bars and the bars are drawn adjacent to each other.
✔✔Hypothesis - ✔✔A statement about a population parameter subject to verification.
✔✔Hypothesis Testing - ✔✔A procedure based on sample evidence and probability
theory to determine whether the hypothesis is a reasonable statement.
✔✔Independence - ✔✔The occurrence of one event has no effect on the probability of
the occurrence of another event.
✔✔Independent Variable - ✔✔The variable that provides the basis for estimation. It is
the predictor variable.
✔✔Inferential Statistics - ✔✔The methods used to estimate a property of a population in
the basis of a sample.
✔✔Joint Probability - ✔✔A probability that measures the likelihood two or more events
will happen concurrently.
✔✔Law of Large Numbers - ✔✔Over a large number of trials the empirical probability of
an event will approach its true probability.
, ✔✔Least Squares Principle - ✔✔Determining a regression equation by minimizing the
sum of the squares of the vertical distances between the actual Y values and the
predicted values of Y.
✔✔Level of Significance - ✔✔The probability of rejecting the null hypothesis when it is
true.
✔✔Median - ✔✔The midpoint of the values after they have been ordered from smallest
to the largest, or the largest to the smallest.
✔✔Mean Deviation - ✔✔The arithmetic mean of the absolute values of the deviations
from the arithmetic mean.
✔✔Mode - ✔✔The value of the observation that appears most frequently.
✔✔Multiplication Formula - ✔✔If there are m ways of doing one thing and n ways of
doing another thing, there are m x n ways of doing both.
✔✔Mutually Exclusive - ✔✔The occurrence of one event means that none of the other
events can occur at the same time.
✔✔Null Hypothesis - ✔✔A statement about the value of a population parameter
developed for the purpose of testing numerical evidence.
✔✔Outcome - ✔✔A particular result of an experiment.
✔✔Parameter - ✔✔A characteristic of a population.
✔✔Permutation - ✔✔Any arrangement of r objects selected from a single group of n
possible objects.
✔✔Pie Chart - ✔✔A chart the shows the proportion or percent that each class
represents of the total number of frequencies.
✔✔Point Estimate - ✔✔The statistic, computed from sample information, which is used
to estimate the population parameter.
✔✔Population - ✔✔The entire set of individuals or objects of interest or the
measurements obtained from all individuals or objects of interest.
✔✔Probability - ✔✔A value between zero and one, inclusive, describing the relative
possibility (chance or likelihood) an event will occur.
QUESTIONS AND ANSWERS SURE A+
✔✔Empirical Rule - ✔✔For a symmetrical, bell-shaped frequency distribution,
approximately 68% of the observations will lie within + or -1 standard deviation of the
mean; about 95% of the observations will lie within + or -2 standard deviations of the
mean; and practically all (99.7%) will lie within + or -3 standard deviations of the mean.
✔✔Event - ✔✔A collection of one or more outcomes of an experiment.
✔✔Experiment - ✔✔A process that leads to the occurrence of one and only one of
several possible observations.
✔✔Frequency Distribution - ✔✔A grouping of data into mutually exclusive classes
showing the number of observations in each class.
✔✔Frequency Table - ✔✔A grouping of qualitative data into mutually exclusive classes
showing the number of observations in each class.
✔✔Histogram - ✔✔A graph in which the classes are marked on the horizontal axis and
the class frequencies on the vertical axis. The class frequencies are represented by the
heights of the bars and the bars are drawn adjacent to each other.
✔✔Hypothesis - ✔✔A statement about a population parameter subject to verification.
✔✔Hypothesis Testing - ✔✔A procedure based on sample evidence and probability
theory to determine whether the hypothesis is a reasonable statement.
✔✔Independence - ✔✔The occurrence of one event has no effect on the probability of
the occurrence of another event.
✔✔Independent Variable - ✔✔The variable that provides the basis for estimation. It is
the predictor variable.
✔✔Inferential Statistics - ✔✔The methods used to estimate a property of a population in
the basis of a sample.
✔✔Joint Probability - ✔✔A probability that measures the likelihood two or more events
will happen concurrently.
✔✔Law of Large Numbers - ✔✔Over a large number of trials the empirical probability of
an event will approach its true probability.
, ✔✔Least Squares Principle - ✔✔Determining a regression equation by minimizing the
sum of the squares of the vertical distances between the actual Y values and the
predicted values of Y.
✔✔Level of Significance - ✔✔The probability of rejecting the null hypothesis when it is
true.
✔✔Median - ✔✔The midpoint of the values after they have been ordered from smallest
to the largest, or the largest to the smallest.
✔✔Mean Deviation - ✔✔The arithmetic mean of the absolute values of the deviations
from the arithmetic mean.
✔✔Mode - ✔✔The value of the observation that appears most frequently.
✔✔Multiplication Formula - ✔✔If there are m ways of doing one thing and n ways of
doing another thing, there are m x n ways of doing both.
✔✔Mutually Exclusive - ✔✔The occurrence of one event means that none of the other
events can occur at the same time.
✔✔Null Hypothesis - ✔✔A statement about the value of a population parameter
developed for the purpose of testing numerical evidence.
✔✔Outcome - ✔✔A particular result of an experiment.
✔✔Parameter - ✔✔A characteristic of a population.
✔✔Permutation - ✔✔Any arrangement of r objects selected from a single group of n
possible objects.
✔✔Pie Chart - ✔✔A chart the shows the proportion or percent that each class
represents of the total number of frequencies.
✔✔Point Estimate - ✔✔The statistic, computed from sample information, which is used
to estimate the population parameter.
✔✔Population - ✔✔The entire set of individuals or objects of interest or the
measurements obtained from all individuals or objects of interest.
✔✔Probability - ✔✔A value between zero and one, inclusive, describing the relative
possibility (chance or likelihood) an event will occur.
