Statistics for Management and Economics, 12e Gerald Keller (Test Bank All Chapters, 100% Original
Verified, A+ Grade) Answers at the end of each Chapter.
Name: Class: Date:
Chap 1_12e
Indicate whether the statement is true or false.
1. 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.
a. True
b. False
2. 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.
a. True
b. False
3. A population is the group of all items of interest to a statistics practitioner.
a. True
b. False
4. The significance level measures the proportion of the time an inference about a population will be correct in the long
run.
a. True
b. False
5. A statistic is typically a known quantity while a parameter is typically an unknown quantity.
a. True
b. False
6. 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.
a. True
b. False
7. A descriptive measure of a sample is called a parameter.
a. True
b. False
8. 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.
a. True
b. False
9. The confidence level is the proportion of times that an estimating procedure will be wrong in the long run.
a. True
b. False
10. Statistical inference is the process of making an estimate, prediction, or decision about a population based on sample
data.
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,Name: Class: Date:
Chap 1_12e
a. True
b. False
11. A descriptive measure of a population is called a parameter.
a. True
b. False
12. A descriptive measure that is computed from a sample is called a statistic.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
13. The process of using sample statistics to draw conclusions about population parameters is called:
a. finding the significance level. b. calculating descriptive statistics.
c. doing inferential statistics. d. calculating the confidence level.
14. 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.
15. 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. b. statistic.
c. sample. d. population.
16. A descriptive measure that is computed from a sample is called a:
a. parameter. b. statistic.
c. population. d. sample.
17. 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. b. statistic.
c. sample. d. population.
18. How do confidence levels compare to significance levels?
a. Confidence levels and significance levels are both typically small.
b. Confidence levels and significance levels are both typically large.
c. Confidence levels are typically small and significance levels are typically large.
d. Confidence levels are typically large and significance levels are typically small.
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,Name: Class: Date:
Chap 1_12e
19. One source of data used in this chapter is the GSS. What does this acronym mean?
a. General Social Survey
b. General Statistical Survey
c. Survey of Government Spending
d. Global Science Survey
20. A researcher at Florida International University (FIU) wants to estimate the average number of credits earned by
students last semester at FIU. She randomly selects 750 students from last semester and finds that they averaged 13.75
credits per student. The population of interest to the researcher is:
a. all FIU students. b. all college students.
c. all FIU students enrolled last semester. d. the 750 FIU students selected at random.
21. A study is under way to determine the average height of all 63,000 adult walnut trees in a certain national forest. The
heights of 950 randomly selected adult walnut trees are measured and analyzed. The sample in this study is:
a. the average height of the 950 randomly selected adult walnut trees.
b. the average height of all the adult walnut trees in this forest.
c. all the adult walnut trees in this forest.
d. the 950 adult walnut trees selected at random from this forest.
22. A descriptive measure that is computed from a population is called a:
a. sample. b. statistic.
c. population. d. parameter.
23. 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. b. statistic.
c. sample. d. population.
24. The significance level of a statistical inference measures:
a. the proportion of times a conclusion about a population will be correct.
b. the proportion of times a conclusion about a population will be wrong.
c. the proportion of times an estimation procedure will be correct.
d. the proportion of times an estimation procedure will be wrong.
25. A study is under way to determine the average height of all 29,000 adult pine trees in a certain national forest. The
heights of 600 randomly selected adult pine trees are measured and analyzed. The parameter in the study is:
a. the average height of the 600 randomly selected adult pine trees.
b. the average height of all the adult pine trees in this forest.
c. all the adult pine trees in this forest.
d. the 600 adult pine trees selected at random from this forest.
26. The confidence level of a statistical inference measures:
a. the proportion of times a conclusion about a population will be correct.
b. the proportion of times a conclusion about a population will be wrong.
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, Name: Class: Date:
Chap 1_12e
c. the proportion of times an estimation procedure will be correct.
d. the proportion of times an estimation procedure will be wrong.
27. 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
28. One source of data used in this chapter is the SCF. What does this acronym mean?
a. Consumer Financial Survey
b. Survey of Consumer Finances
c. Survey of Corporate Finances
d. Social Census Facts
29. 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 b. Inferential statistics
c. Sample statistics d. Population statistics
30. Which of the following is a measure of the reliability of a statistical inference?
a. A population parameter. b. A significance level.
c. A descriptive statistic. d. A sample statistic.
Enter the appropriate word(s) to complete the statement.
31. The Human Resources Director of a large hospital wants to determine the percentage of all employees who favor a
newly proposed benefits package. He selects 300 employees at random and finds that 85% approve the newly proposed
package. The percentage of all employees of this company who favor the newly proposed package is a(n)
____________________.
32. The Human Resources Director at Illinois State University wishes to develop an employee pension package. To get an
idea of what components of a pension package are most important, he selects 525 employees at random and asks them for
their opinions. The group of all employees at ISU is known as the ____________________.
33. The Commissioner of Health in the state of New York wanted to study malpractice litigation in Albany last year. She
randomly selected 53,000 medical records from the population of 2.5 million patients in Albany last year. The proportion
of malpractice claims filed from the 53,000 patients is an example of a(n) ____________________.
34. Each of the following is a form of doing ____________________ statistics: 1) presenting your data using a graph; 2)
calculating the mean of your sample; and 3) organizing your data into a table.
35. The Human Resources Director at Florida Atlantic University wishes to develop an employee benefits package. To get
an idea of what components of a benefits package are most important, he selects 350 employees at random and asks them
for their opinions. Numerically summarizing the preferences of these 350 employees is an example of doing
____________________ statistics.
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Verified, A+ Grade) Answers at the end of each Chapter.
Name: Class: Date:
Chap 1_12e
Indicate whether the statement is true or false.
1. 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.
a. True
b. False
2. 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.
a. True
b. False
3. A population is the group of all items of interest to a statistics practitioner.
a. True
b. False
4. The significance level measures the proportion of the time an inference about a population will be correct in the long
run.
a. True
b. False
5. A statistic is typically a known quantity while a parameter is typically an unknown quantity.
a. True
b. False
6. 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.
a. True
b. False
7. A descriptive measure of a sample is called a parameter.
a. True
b. False
8. 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.
a. True
b. False
9. The confidence level is the proportion of times that an estimating procedure will be wrong in the long run.
a. True
b. False
10. Statistical inference is the process of making an estimate, prediction, or decision about a population based on sample
data.
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chap 1_12e
a. True
b. False
11. A descriptive measure of a population is called a parameter.
a. True
b. False
12. A descriptive measure that is computed from a sample is called a statistic.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
13. The process of using sample statistics to draw conclusions about population parameters is called:
a. finding the significance level. b. calculating descriptive statistics.
c. doing inferential statistics. d. calculating the confidence level.
14. 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.
15. 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. b. statistic.
c. sample. d. population.
16. A descriptive measure that is computed from a sample is called a:
a. parameter. b. statistic.
c. population. d. sample.
17. 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. b. statistic.
c. sample. d. population.
18. How do confidence levels compare to significance levels?
a. Confidence levels and significance levels are both typically small.
b. Confidence levels and significance levels are both typically large.
c. Confidence levels are typically small and significance levels are typically large.
d. Confidence levels are typically large and significance levels are typically small.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chap 1_12e
19. One source of data used in this chapter is the GSS. What does this acronym mean?
a. General Social Survey
b. General Statistical Survey
c. Survey of Government Spending
d. Global Science Survey
20. A researcher at Florida International University (FIU) wants to estimate the average number of credits earned by
students last semester at FIU. She randomly selects 750 students from last semester and finds that they averaged 13.75
credits per student. The population of interest to the researcher is:
a. all FIU students. b. all college students.
c. all FIU students enrolled last semester. d. the 750 FIU students selected at random.
21. A study is under way to determine the average height of all 63,000 adult walnut trees in a certain national forest. The
heights of 950 randomly selected adult walnut trees are measured and analyzed. The sample in this study is:
a. the average height of the 950 randomly selected adult walnut trees.
b. the average height of all the adult walnut trees in this forest.
c. all the adult walnut trees in this forest.
d. the 950 adult walnut trees selected at random from this forest.
22. A descriptive measure that is computed from a population is called a:
a. sample. b. statistic.
c. population. d. parameter.
23. 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. b. statistic.
c. sample. d. population.
24. The significance level of a statistical inference measures:
a. the proportion of times a conclusion about a population will be correct.
b. the proportion of times a conclusion about a population will be wrong.
c. the proportion of times an estimation procedure will be correct.
d. the proportion of times an estimation procedure will be wrong.
25. A study is under way to determine the average height of all 29,000 adult pine trees in a certain national forest. The
heights of 600 randomly selected adult pine trees are measured and analyzed. The parameter in the study is:
a. the average height of the 600 randomly selected adult pine trees.
b. the average height of all the adult pine trees in this forest.
c. all the adult pine trees in this forest.
d. the 600 adult pine trees selected at random from this forest.
26. The confidence level of a statistical inference measures:
a. the proportion of times a conclusion about a population will be correct.
b. the proportion of times a conclusion about a population will be wrong.
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, Name: Class: Date:
Chap 1_12e
c. the proportion of times an estimation procedure will be correct.
d. the proportion of times an estimation procedure will be wrong.
27. 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
28. One source of data used in this chapter is the SCF. What does this acronym mean?
a. Consumer Financial Survey
b. Survey of Consumer Finances
c. Survey of Corporate Finances
d. Social Census Facts
29. 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 b. Inferential statistics
c. Sample statistics d. Population statistics
30. Which of the following is a measure of the reliability of a statistical inference?
a. A population parameter. b. A significance level.
c. A descriptive statistic. d. A sample statistic.
Enter the appropriate word(s) to complete the statement.
31. The Human Resources Director of a large hospital wants to determine the percentage of all employees who favor a
newly proposed benefits package. He selects 300 employees at random and finds that 85% approve the newly proposed
package. The percentage of all employees of this company who favor the newly proposed package is a(n)
____________________.
32. The Human Resources Director at Illinois State University wishes to develop an employee pension package. To get an
idea of what components of a pension package are most important, he selects 525 employees at random and asks them for
their opinions. The group of all employees at ISU is known as the ____________________.
33. The Commissioner of Health in the state of New York wanted to study malpractice litigation in Albany last year. She
randomly selected 53,000 medical records from the population of 2.5 million patients in Albany last year. The proportion
of malpractice claims filed from the 53,000 patients is an example of a(n) ____________________.
34. Each of the following is a form of doing ____________________ statistics: 1) presenting your data using a graph; 2)
calculating the mean of your sample; and 3) organizing your data into a table.
35. The Human Resources Director at Florida Atlantic University wishes to develop an employee benefits package. To get
an idea of what components of a benefits package are most important, he selects 350 employees at random and asks them
for their opinions. Numerically summarizing the preferences of these 350 employees is an example of doing
____________________ statistics.
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