CHAPTER 1: WHAT IS STATISTICS?
TRUE/FALSE
1. The significance level measures the proportion of the time an inference about a population will be
correct in the long run.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
2. A descriptive measure that is computed from a sample is called a statistic.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
3. The confidence level is the proportion of times that an estimating procedure will be wrong in the
long run.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
4. A resort employs 3,500 managers and staff. To ascertain their employees' opinions of a proposed
health insurance plan, 350 employees are surveyed at random. The proportion of the 350
employees who favor the health insurance plan represents a parameter in this scenario.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
5. In a sample of 350 students selected from a large college of business, 25% are found to be
marketing majors. The 25% is a statistic.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
6. 35% of a sample of 300 professional baseball players indicated that their parents did not play
baseball. Based on this sample, we estimate that approximately 35% of the parents of all
professional baseball players did not play baseball, plus or minus 5%. This is an example of using
inferential statistics.
, ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
7. A population is the group of all items of interest to a statistics practitioner.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
8. A statistic is typically a known quantity while a parameter is typically an unknown quantity.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
9. Statistical inference is the process of making an estimate, prediction, or decision about a
population based on sample data.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
10. A descriptive measure of a population is called a parameter.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
11. A descriptive measure of a sample is called a parameter.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
12. You take a random sample to estimate a population mean and your results have a confidence level
of 80%. That means the process you used will give you correct results 80% of the time.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.06 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
MULTIPLE CHOICE
,1. A random sample of 100 students is taken at LearnAll University and it’s found that their average
GPA is 3.1. If this information is used to help estimate the average GPA for all students at
LearnAll University, which branch of statistics was applied?
a. Descriptive statistics c. Sample statistics
b. Inferential statistics d. Population statistics
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
2. A company has developed a new computer microprocessor whose average lifetime is unknown.
In order to estimate this average, 300 microprocessors are randomly selected from a large
production line and tested; their average lifetime is found to be 7 years. The 300 microprocessors
represent a:
a. parameter. c. sample.
b. statistic. d. population.
ANS: C PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
3. A company has developed a new engine whose average lifetime is unknown. In order to estimate
this average, 100 engines are randomly selected from a large production line and tested; their
average lifetime is found to be 11 years. The 11 years represents a:
a. parameter. c. sample.
b. statistic. d. population.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
4. A descriptive measure that is computed from a sample is called a:
a. parameter. c. population.
b. statistic. d. sample.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
5. A descriptive measure that is computed from a population is called a:
a. sample. c. population.
b. statistic. d. parameter.
ANS: D PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
, KEY: Bloom's: Knowledge
6. Which of the following is a measure of the reliability of a statistical inference?
a. A population parameter. c. A descriptive statistic.
b. A significance level. d. A sample statistic.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
7. A councilman who is running for the office of senator of a state with 3.5 million registered voters
commissions a survey. In the survey, 46% of the 8,000 registered voters interviewed say they
plan to vote for him. The population of interest is:
a. the 3.5 million registered voters in the state.
b. the 8,000 registered voters interviewed.
c. the 46% who plan to vote for her.
d. all the residents of the state.
ANS: A PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
8. A company has developed a new power cell and wants to estimate its average lifetime. A random
sample of 650 power cells is tested and the average lifetime of this sample is found to be 315
hours. The 315 hours is the value of a:
a. parameter. c. sample.
b. statistic. d. population.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
9. The process of using sample statistics to draw conclusions about population parameters is called:
a. finding the significance level. c. doing inferential statistics.
b. calculating descriptive statistics. d. calculating the confidence level.
ANS: C PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
10. Which of the following represents a population, as opposed to a sample?
a. 2,000 respondents to a magazine survey which has 600,000 subscribers.
b. The first 15 students in your class completing a final exam.
c. Every fourth student to arrive at the book store on your campus.
d. All registered voters in the state of West Virginia
TRUE/FALSE
1. The significance level measures the proportion of the time an inference about a population will be
correct in the long run.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
2. A descriptive measure that is computed from a sample is called a statistic.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
3. The confidence level is the proportion of times that an estimating procedure will be wrong in the
long run.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
4. A resort employs 3,500 managers and staff. To ascertain their employees' opinions of a proposed
health insurance plan, 350 employees are surveyed at random. The proportion of the 350
employees who favor the health insurance plan represents a parameter in this scenario.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
5. In a sample of 350 students selected from a large college of business, 25% are found to be
marketing majors. The 25% is a statistic.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
6. 35% of a sample of 300 professional baseball players indicated that their parents did not play
baseball. Based on this sample, we estimate that approximately 35% of the parents of all
professional baseball players did not play baseball, plus or minus 5%. This is an example of using
inferential statistics.
, ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
7. A population is the group of all items of interest to a statistics practitioner.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
8. A statistic is typically a known quantity while a parameter is typically an unknown quantity.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
9. Statistical inference is the process of making an estimate, prediction, or decision about a
population based on sample data.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
10. A descriptive measure of a population is called a parameter.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
11. A descriptive measure of a sample is called a parameter.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
12. You take a random sample to estimate a population mean and your results have a confidence level
of 80%. That means the process you used will give you correct results 80% of the time.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.06 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
MULTIPLE CHOICE
,1. A random sample of 100 students is taken at LearnAll University and it’s found that their average
GPA is 3.1. If this information is used to help estimate the average GPA for all students at
LearnAll University, which branch of statistics was applied?
a. Descriptive statistics c. Sample statistics
b. Inferential statistics d. Population statistics
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
2. A company has developed a new computer microprocessor whose average lifetime is unknown.
In order to estimate this average, 300 microprocessors are randomly selected from a large
production line and tested; their average lifetime is found to be 7 years. The 300 microprocessors
represent a:
a. parameter. c. sample.
b. statistic. d. population.
ANS: C PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
3. A company has developed a new engine whose average lifetime is unknown. In order to estimate
this average, 100 engines are randomly selected from a large production line and tested; their
average lifetime is found to be 11 years. The 11 years represents a:
a. parameter. c. sample.
b. statistic. d. population.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
4. A descriptive measure that is computed from a sample is called a:
a. parameter. c. population.
b. statistic. d. sample.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
5. A descriptive measure that is computed from a population is called a:
a. sample. c. population.
b. statistic. d. parameter.
ANS: D PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
, KEY: Bloom's: Knowledge
6. Which of the following is a measure of the reliability of a statistical inference?
a. A population parameter. c. A descriptive statistic.
b. A significance level. d. A sample statistic.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Knowledge
7. A councilman who is running for the office of senator of a state with 3.5 million registered voters
commissions a survey. In the survey, 46% of the 8,000 registered voters interviewed say they
plan to vote for him. The population of interest is:
a. the 3.5 million registered voters in the state.
b. the 8,000 registered voters interviewed.
c. the 46% who plan to vote for her.
d. all the residents of the state.
ANS: A PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
8. A company has developed a new power cell and wants to estimate its average lifetime. A random
sample of 650 power cells is tested and the average lifetime of this sample is found to be 315
hours. The 315 hours is the value of a:
a. parameter. c. sample.
b. statistic. d. population.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
9. The process of using sample statistics to draw conclusions about population parameters is called:
a. finding the significance level. c. doing inferential statistics.
b. calculating descriptive statistics. d. calculating the confidence level.
ANS: C PTS: 1 DIF: Easy OBJ: SFME.KELL.15.01.01
NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.01
KEY: Bloom's: Comprehension
10. Which of the following represents a population, as opposed to a sample?
a. 2,000 respondents to a magazine survey which has 600,000 subscribers.
b. The first 15 students in your class completing a final exam.
c. Every fourth student to arrive at the book store on your campus.
d. All registered voters in the state of West Virginia
