BSA 117 – Practice Examination
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. What is the primary purpose of statistics in business?
A. To eliminate uncertainty completely
B. To collect and interpret data for decision-making
C. To replace managerial judgment
D. To avoid using financial reports
Correct Answer: B
Rationale: Statistics is used to collect, organize, analyze, and interpret
data to support business decision-making, not to eliminate
uncertainty or replace judgment.
2. Which of the following is an example of descriptive statistics?
A. Predicting future sales
B. Testing a hypothesis
C. Calculating average revenue
D. Estimating population parameters
Correct Answer: C
,Rationale: Descriptive statistics summarize or describe data, such as
computing averages, percentages, or charts.
3. A population refers to:
A. A sample used for analysis
B. A subset of data
C. The entire group being studied
D. Random observations only
Correct Answer: C
Rationale: A population includes all members or items of interest in a
statistical study.
4. Which measure is most affected by extreme values?
A. Median
B. Mode
C. Mean
D. Range
Correct Answer: C
Rationale: The mean is sensitive to outliers because it includes all
values in its calculation.
5. The median of a dataset is:
A. The most frequent value
B. The middle value when arranged in order
,C. The average of all values
D. The difference between max and min
Correct Answer: B
Rationale: The median is the central value in an ordered dataset.
6. Which scale of measurement allows ranking but not equal
intervals?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
Correct Answer: B
Rationale: Ordinal scales allow ordering but not meaningful
differences between values.
7. A bar chart is best used for:
A. Continuous data distribution
B. Comparing categories
C. Showing time trends
D. Measuring central tendency
Correct Answer: B
Rationale: Bar charts compare different categories visually using bars.
, 8. The mode of a dataset is:
A. The average
B. The middle value
C. The most frequent value
D. The largest value
Correct Answer: C
Rationale: The mode is the value that appears most frequently.
9. Probability measures:
A. Certainty of an event
B. Likelihood of an event occurring
C. Past outcomes only
D. Fixed business outcomes
Correct Answer: B
Rationale: Probability quantifies how likely an event is to occur.
10. A sample is best defined as:
A. Entire population
B. Subset of a population
C. Random guess
D. Data error
Correct Answer: B
Rationale: A sample is a portion of the population used for analysis.
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. What is the primary purpose of statistics in business?
A. To eliminate uncertainty completely
B. To collect and interpret data for decision-making
C. To replace managerial judgment
D. To avoid using financial reports
Correct Answer: B
Rationale: Statistics is used to collect, organize, analyze, and interpret
data to support business decision-making, not to eliminate
uncertainty or replace judgment.
2. Which of the following is an example of descriptive statistics?
A. Predicting future sales
B. Testing a hypothesis
C. Calculating average revenue
D. Estimating population parameters
Correct Answer: C
,Rationale: Descriptive statistics summarize or describe data, such as
computing averages, percentages, or charts.
3. A population refers to:
A. A sample used for analysis
B. A subset of data
C. The entire group being studied
D. Random observations only
Correct Answer: C
Rationale: A population includes all members or items of interest in a
statistical study.
4. Which measure is most affected by extreme values?
A. Median
B. Mode
C. Mean
D. Range
Correct Answer: C
Rationale: The mean is sensitive to outliers because it includes all
values in its calculation.
5. The median of a dataset is:
A. The most frequent value
B. The middle value when arranged in order
,C. The average of all values
D. The difference between max and min
Correct Answer: B
Rationale: The median is the central value in an ordered dataset.
6. Which scale of measurement allows ranking but not equal
intervals?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
Correct Answer: B
Rationale: Ordinal scales allow ordering but not meaningful
differences between values.
7. A bar chart is best used for:
A. Continuous data distribution
B. Comparing categories
C. Showing time trends
D. Measuring central tendency
Correct Answer: B
Rationale: Bar charts compare different categories visually using bars.
, 8. The mode of a dataset is:
A. The average
B. The middle value
C. The most frequent value
D. The largest value
Correct Answer: C
Rationale: The mode is the value that appears most frequently.
9. Probability measures:
A. Certainty of an event
B. Likelihood of an event occurring
C. Past outcomes only
D. Fixed business outcomes
Correct Answer: B
Rationale: Probability quantifies how likely an event is to occur.
10. A sample is best defined as:
A. Entire population
B. Subset of a population
C. Random guess
D. Data error
Correct Answer: B
Rationale: A sample is a portion of the population used for analysis.
