STATISTICS FOR BUSINESS AND
ECONOMICS COMPREHENSIVE
EXAMINATION TEST COMPLETE
QUESTIONS AND CORRECT ANSWERS
●● What are the main applications of statistics in business?
Answer: Applications include accounting (statistical sampling for
audits), economics (forecasts), finance (investment advice), marketing
(data collection), and production (quality control).
●● What is a data set?
Answer: A data set consists of all the data collected for a particular
study.
●● What is the difference between elements and observations in a data
set?
Answer: Elements are the entities on which data are collected, while
observations are the set of measurements obtained for a particular
element.
●● What is the formula for the total number of data values in a data set?
Answer: The total number of data values is the number of elements
multiplied by the number of variables.
, ●● What is nominal scale of measurement?
Answer: Nominal scale uses labels or names to identify an attribute of
the element, such as 'Member' or 'Observer' in the WTO Status variable.
●● What is ordinal scale of measurement?
Answer: Ordinal scale has properties of nominal data, and the order or
rank of the data is meaningful, such as credit ratings from AAA to F.
●● What defines an interval scale of measurement?
Answer: Interval scale has properties of ordinal data, and the interval
between observations is expressed in fixed units, such as SAT scores.
●● What is a ratio scale of measurement?
Answer: Ratio scale has properties of interval data, and the ratio of two
values is meaningful, requiring a zero value to indicate 'nothing exists.'
●● What are categorical data?
Answer: Categorical data are variables with categorical values, where
statistical analyses are limited to counting observations in each category.
●● What are quantitative data?
Answer: Quantitative data indicate how many or how much and are
always numerical, allowing for ordinary arithmetic operations.
ECONOMICS COMPREHENSIVE
EXAMINATION TEST COMPLETE
QUESTIONS AND CORRECT ANSWERS
●● What are the main applications of statistics in business?
Answer: Applications include accounting (statistical sampling for
audits), economics (forecasts), finance (investment advice), marketing
(data collection), and production (quality control).
●● What is a data set?
Answer: A data set consists of all the data collected for a particular
study.
●● What is the difference between elements and observations in a data
set?
Answer: Elements are the entities on which data are collected, while
observations are the set of measurements obtained for a particular
element.
●● What is the formula for the total number of data values in a data set?
Answer: The total number of data values is the number of elements
multiplied by the number of variables.
, ●● What is nominal scale of measurement?
Answer: Nominal scale uses labels or names to identify an attribute of
the element, such as 'Member' or 'Observer' in the WTO Status variable.
●● What is ordinal scale of measurement?
Answer: Ordinal scale has properties of nominal data, and the order or
rank of the data is meaningful, such as credit ratings from AAA to F.
●● What defines an interval scale of measurement?
Answer: Interval scale has properties of ordinal data, and the interval
between observations is expressed in fixed units, such as SAT scores.
●● What is a ratio scale of measurement?
Answer: Ratio scale has properties of interval data, and the ratio of two
values is meaningful, requiring a zero value to indicate 'nothing exists.'
●● What are categorical data?
Answer: Categorical data are variables with categorical values, where
statistical analyses are limited to counting observations in each category.
●● What are quantitative data?
Answer: Quantitative data indicate how many or how much and are
always numerical, allowing for ordinary arithmetic operations.
