Page 1 of 86
BASIC STATISTICS IN BUSINESS AND ECONOMICS 10TH EDITION (LIND,
MARCHAL, & WATHEN) EXAM QUESTIONS LATEST EDITION 2026 – 2027
VERSION SOLVED QUESTIONS & ANSWERS
BASIC STATISTICS IN BUSINESS AND ECONOMICS
10th Edition (Lind, Marchal, & Wathen) — QUESTIONS WITH RATIONALES
CHAPTER 1: WHAT IS STATISTICS? (Questions 1–12)
1. Statistics is best defined as:
A) The study of mathematics and calculations
B) The science of collecting, organizing, presenting, analyzing, and interpreting data to
assist in making more effective decisions
C) A method of predicting the future with certainty
D) The process of collecting data only
Answer: B
Rationale: Statistics is the science of collecting, organizing, presenting, analyzing, and
interpreting data to assist in making more effective decisions. It encompasses the
entire process from data collection to decision-making.
2. Which of the following is an example of descriptive statistics?
A) Testing a hypothesis about a population mean
B) Calculating the average age of students in a class
, Page 2 of 86
C) Estimating a population proportion from a sample
D) Conducting a t-test
Answer: B
Rationale: Descriptive statistics involves organizing, summarizing, and presenting data
in an informative way. Calculating the average age of students in a class is a descriptive
statistic because it summarizes the data without making inferences about a larger
population.
3. Inferential statistics is used to:
A) Simply describe the data collected
B) Make inferences about a population based on a sample
C) Calculate the mean of a dataset
D) Create frequency tables
Answer: B
Rationale: Inferential statistics involves using sample data to make estimates,
decisions, predictions, or other generalizations about a larger population.
4. A population is:
A) A subset of a larger group
B) The entire set of individuals or objects of interest
C) A sample selected for study
D) A type of probability distribution
Answer: B
Rationale: A population consists of all the individuals or objects of interest in a
particular study. A sample is a subset of the population.
5. A sample is:
A) The entire group of interest
, Page 3 of 86
B) A subset of the population
C) A type of variable
D) A descriptive measure
Answer: B
Rationale: A sample is a portion or subset of the population selected for study. It is
used to make inferences about the larger population.
6. Which of the following is a qualitative variable?
A) Age
B) Height
C) Gender
D) Weight
Answer: C
Rationale: A qualitative variable (also called a categorical or attribute variable)
describes a quality or characteristic, such as gender, color, or type. Age, height, and
weight are quantitative variables because they are measured numerically.
7. A discrete variable is:
A) A variable that can assume any value within a range
B) A variable that can only assume specific, countable values
C) A variable that is always qualitative
D) A variable that is always continuous
Answer: B
Rationale: A discrete variable can only assume certain values and there are usually
gaps between values (e.g., number of children, number of cars). A continuous variable
can assume any value within a range.
, Page 4 of 86
8. Which level of measurement has all the properties of interval measurement plus
a true zero point?
A) Nominal
B) Ordinal
C) Interval
D) Ratio
Answer: D
Rationale: The ratio level of measurement has all the properties of interval
measurement (equal distances between values) plus a true zero point, allowing for
meaningful ratios. Examples include weight, height, and income.
9. A nominal level of measurement:
A) Has a meaningful order
B) Has equal intervals
C) Categorizes data without any order
D) Has a true zero point
Answer: C
Rationale: The nominal level of measurement categorizes data into groups or
categories without any implied order. Examples include gender, marital status, and eye
color.
10. Which of the following is an example of an ordinal level of measurement?
A) Temperature in Fahrenheit
B) Ranking of college professors (excellent, good, fair, poor)
C) Weight in kilograms
D) Number of students in a class
Answer: B
Rationale: The ordinal level of measurement has a meaningful order but the differences
BASIC STATISTICS IN BUSINESS AND ECONOMICS 10TH EDITION (LIND,
MARCHAL, & WATHEN) EXAM QUESTIONS LATEST EDITION 2026 – 2027
VERSION SOLVED QUESTIONS & ANSWERS
BASIC STATISTICS IN BUSINESS AND ECONOMICS
10th Edition (Lind, Marchal, & Wathen) — QUESTIONS WITH RATIONALES
CHAPTER 1: WHAT IS STATISTICS? (Questions 1–12)
1. Statistics is best defined as:
A) The study of mathematics and calculations
B) The science of collecting, organizing, presenting, analyzing, and interpreting data to
assist in making more effective decisions
C) A method of predicting the future with certainty
D) The process of collecting data only
Answer: B
Rationale: Statistics is the science of collecting, organizing, presenting, analyzing, and
interpreting data to assist in making more effective decisions. It encompasses the
entire process from data collection to decision-making.
2. Which of the following is an example of descriptive statistics?
A) Testing a hypothesis about a population mean
B) Calculating the average age of students in a class
, Page 2 of 86
C) Estimating a population proportion from a sample
D) Conducting a t-test
Answer: B
Rationale: Descriptive statistics involves organizing, summarizing, and presenting data
in an informative way. Calculating the average age of students in a class is a descriptive
statistic because it summarizes the data without making inferences about a larger
population.
3. Inferential statistics is used to:
A) Simply describe the data collected
B) Make inferences about a population based on a sample
C) Calculate the mean of a dataset
D) Create frequency tables
Answer: B
Rationale: Inferential statistics involves using sample data to make estimates,
decisions, predictions, or other generalizations about a larger population.
4. A population is:
A) A subset of a larger group
B) The entire set of individuals or objects of interest
C) A sample selected for study
D) A type of probability distribution
Answer: B
Rationale: A population consists of all the individuals or objects of interest in a
particular study. A sample is a subset of the population.
5. A sample is:
A) The entire group of interest
, Page 3 of 86
B) A subset of the population
C) A type of variable
D) A descriptive measure
Answer: B
Rationale: A sample is a portion or subset of the population selected for study. It is
used to make inferences about the larger population.
6. Which of the following is a qualitative variable?
A) Age
B) Height
C) Gender
D) Weight
Answer: C
Rationale: A qualitative variable (also called a categorical or attribute variable)
describes a quality or characteristic, such as gender, color, or type. Age, height, and
weight are quantitative variables because they are measured numerically.
7. A discrete variable is:
A) A variable that can assume any value within a range
B) A variable that can only assume specific, countable values
C) A variable that is always qualitative
D) A variable that is always continuous
Answer: B
Rationale: A discrete variable can only assume certain values and there are usually
gaps between values (e.g., number of children, number of cars). A continuous variable
can assume any value within a range.
, Page 4 of 86
8. Which level of measurement has all the properties of interval measurement plus
a true zero point?
A) Nominal
B) Ordinal
C) Interval
D) Ratio
Answer: D
Rationale: The ratio level of measurement has all the properties of interval
measurement (equal distances between values) plus a true zero point, allowing for
meaningful ratios. Examples include weight, height, and income.
9. A nominal level of measurement:
A) Has a meaningful order
B) Has equal intervals
C) Categorizes data without any order
D) Has a true zero point
Answer: C
Rationale: The nominal level of measurement categorizes data into groups or
categories without any implied order. Examples include gender, marital status, and eye
color.
10. Which of the following is an example of an ordinal level of measurement?
A) Temperature in Fahrenheit
B) Ranking of college professors (excellent, good, fair, poor)
C) Weight in kilograms
D) Number of students in a class
Answer: B
Rationale: The ordinal level of measurement has a meaningful order but the differences
