TEST BANK
STATISTICS FOR BUSINESS AND ECONOMICS
14TH EDITION
CHAPTER NO. 01. STATISTICS, DATA, AND STATISTICAL THINKING
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Solve the problem.
1) Which of the following is not the job of a statistician?
A) determining what information is relevant in a given problem
B) implementing new procedures based on the results of a study
C) collecting numerical information in the form of data
D) determining whether the conclusions drawn from a study are to be trusted
Objective: (1.1) Define Statistics
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
2) What is statistics?
Objective: (1.1) Define Statistics
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
3) A recent report stated "Based on a sample of 120 truck drivers, there is evidence to indicate that, on average,
independent truck drivers earn more than company-hired truck drivers." Does this statement describe descriptive
or inferential statistics?
A) Descriptive statistics B) Inferential statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
4) A survey of high school teenagers reported that 82% of those sampled are interested in pursuing a college
education. Does this statement describe descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
5) The average age of the students in a statistics class is 22 years. Does this statement describe descriptive or
inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
6) From past figures, it is predicted that 45% of the registered voters will vote in the March primary. Does this
statement describe descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
7) Parking at a large university has become a very big problem. University administrators are interested in
determining the average parking time (e.g. the time it takes a student to find a parking spot) of its students. An
administrator inconspicuously followed 250 students and carefully recorded their parking times. The university is
interested in using the information from the sample of 250 students collected to learn information about the entire
student parking population. Would this be an application of descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
1
, 8) As part of an economics class project, students were asked to randomly select 500 New York Stock Exchange
(NYSE) stocks from the Wall Street Journal. As part of the project, students were asked to summarize the current
prices (also referred to as the closing price of the stock for a particular trading date) of the collected stocks using
graphical and numerical techniques. Would this be an application of descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
9) In a survey of 5000 high school students, 17% of those surveyed read at least one best-seller each month. Give an
example of a descriptive statement and an inferential statement that could be made based on this information.
Objective: (1.2) Define Descriptive and Inferential Statistics
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
10) Which of the following is not an element of descriptive statistical problems?
A) data are displayed visually in graphs B) patterns in a data set are identified
C) information revealed in a data set is summarized D) predictions are made about a larger set of data
Objective: (1.2) Define Descriptive and Inferential Statistics
Answer the question True or False.
11) When we take data obtained from a sample and make generalizations or predictions about the entire population,
we are utilizing inferential statistics.
A) True B) False
Objective: (1.2) Define Descriptive and Inferential Statistics
12) Statistics involves two different processes, describing sets of data and drawing conclusions about the sets of data
on the basis of sampling.
A) True B) False
Objective: (1.2) Define Descriptive and Inferential Statistics
Solve the problem.
13) Parking at a university has become a problem. University administrators are interested in determining the average
time it takes a student to find a parking spot. An administrator inconspicuously followed 240 students and
recorded how long it took each of them to find a parking spot. Identify the population of interest to the university
administration.
A) the entire set of students who park at the university
B) the entire set of faculty, staff, and students who park at the university
C) the students who park at the university between 9 and 10 AM on Wednesdays
D) the 240 students about whom the data were collected
Objective: (1.3) Identify Elements of Statistics
14) Parking at a university has become a problem. University administrators are interested in determining the average
time it takes a student to find a parking spot. An administrator inconspicuously followed 140 students and
recorded how long it took each of them to find a parking spot. Identify the variable of interest to the university
administration.
A) time to find a parking spot B) number of empty parking spots
C) students who drive cars on campus D) number of students who cannot find a spot
Objective: (1.3) Identify Elements of Statistics
,15) An assembly line is operating satisfactorily if fewer than 5% of the phones produced per day are defective. To
check the quality of a day's production, the company randomly samples 30 phones from a day's production to test
for defects. Define the population of interest to the manufacturer.
A) the 30 responses: defective or not defective
B) all the phones produced during the day in question
C) the 5% of the phones that are defective
D) the 30 phones sampled and tested
Objective: (1.3) Identify Elements of Statistics
16) An insurance company conducted a study to determine the percentage of cardiologists who had been sued for
malpractice in the previous seven years. The sample was randomly chosen from a national directory of doctors.
What is the variable of interest in this study?
A) all cardiologists in the directory
B) the doctor's area of expertise (i.e., cardiology, pediatrics, etc.)
C) the responses: have been sued/have not been sued for malpractice in the last seven years
D) the number of doctors who are cardiologists
Objective: (1.3) Identify Elements of Statistics
17) A study attempted to estimate the proportion of Florida residents who were willing to spend more tax dollars on
protecting the Florida coastline from environmental disasters. Twenty-four hundred Florida residents were
surveyed.Which of the following is the population used in the study?
A) the 2,400 Florida residents who were surveyed
B) all Florida residents who lived along the coastline
C) Florida residents willing to spend more tax dollars protecting the coastline from environmental disasters
D) all Florida residents
Objective: (1.3) Identify Elements of Statistics
18) A study attempted to estimate the proportion of Florida residents who were willing to spend more tax dollars on
protecting the Florida beaches from environmental disasters. Forty-nine hundred Florida residents were
surveyed.Which of the following describes the variable of interest in the study?
A) the response to the question "Do you use the beach?"
B) the response to the question, "Are you willing to spend more tax dollars on protecting the Florida beaches
from environmental disasters?"
C) the response to the question "Do you live along the beach?"
D) the 4,900 Florida residents surveyed
Objective: (1.3) Identify Elements of Statistics
19) Parking at a large university has become a very big problem. University administrators are interested in
determining the average parking time (e.g. the time it takes a student to find a parking spot) of its students. An
administrator inconspicuously followed 250 students and carefully recorded their parking times. Identify the
population of interest to the university administration.
A) the 250 students that data was collected from
B) the entire set of students that park at the university
C) the parking time, defined to be the amount of time the student spent finding a parking spot
D) a single student that parks at the university
Objective: (1.3) Identify Elements of Statistics
, ANSWER KEYS
1) B
2) Statistics is the science of data that involves collecting, classifying, summarizing, organizing, analyzing,
and interpreting numerical information.
3) B
4) B
5) B
6) A
7) A
8) B
9) Descriptive: 17% of the students sampled (or 850) read at least one best-seller each month. Inferential:
Based on the survey, we estimate that about 17% of all high school students read at least one best-seller each
month.
10) D
11) A
12) A
13) A
14) A
15) B
16) C
17) D
18) B
19) B
STATISTICS FOR BUSINESS AND ECONOMICS
14TH EDITION
CHAPTER NO. 01. STATISTICS, DATA, AND STATISTICAL THINKING
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Solve the problem.
1) Which of the following is not the job of a statistician?
A) determining what information is relevant in a given problem
B) implementing new procedures based on the results of a study
C) collecting numerical information in the form of data
D) determining whether the conclusions drawn from a study are to be trusted
Objective: (1.1) Define Statistics
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
2) What is statistics?
Objective: (1.1) Define Statistics
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
3) A recent report stated "Based on a sample of 120 truck drivers, there is evidence to indicate that, on average,
independent truck drivers earn more than company-hired truck drivers." Does this statement describe descriptive
or inferential statistics?
A) Descriptive statistics B) Inferential statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
4) A survey of high school teenagers reported that 82% of those sampled are interested in pursuing a college
education. Does this statement describe descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
5) The average age of the students in a statistics class is 22 years. Does this statement describe descriptive or
inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
6) From past figures, it is predicted that 45% of the registered voters will vote in the March primary. Does this
statement describe descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
7) Parking at a large university has become a very big problem. University administrators are interested in
determining the average parking time (e.g. the time it takes a student to find a parking spot) of its students. An
administrator inconspicuously followed 250 students and carefully recorded their parking times. The university is
interested in using the information from the sample of 250 students collected to learn information about the entire
student parking population. Would this be an application of descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
1
, 8) As part of an economics class project, students were asked to randomly select 500 New York Stock Exchange
(NYSE) stocks from the Wall Street Journal. As part of the project, students were asked to summarize the current
prices (also referred to as the closing price of the stock for a particular trading date) of the collected stocks using
graphical and numerical techniques. Would this be an application of descriptive or inferential statistics?
A) Inferential statistics B) Descriptive statistics
Objective: (1.2) Define Descriptive and Inferential Statistics
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
9) In a survey of 5000 high school students, 17% of those surveyed read at least one best-seller each month. Give an
example of a descriptive statement and an inferential statement that could be made based on this information.
Objective: (1.2) Define Descriptive and Inferential Statistics
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
10) Which of the following is not an element of descriptive statistical problems?
A) data are displayed visually in graphs B) patterns in a data set are identified
C) information revealed in a data set is summarized D) predictions are made about a larger set of data
Objective: (1.2) Define Descriptive and Inferential Statistics
Answer the question True or False.
11) When we take data obtained from a sample and make generalizations or predictions about the entire population,
we are utilizing inferential statistics.
A) True B) False
Objective: (1.2) Define Descriptive and Inferential Statistics
12) Statistics involves two different processes, describing sets of data and drawing conclusions about the sets of data
on the basis of sampling.
A) True B) False
Objective: (1.2) Define Descriptive and Inferential Statistics
Solve the problem.
13) Parking at a university has become a problem. University administrators are interested in determining the average
time it takes a student to find a parking spot. An administrator inconspicuously followed 240 students and
recorded how long it took each of them to find a parking spot. Identify the population of interest to the university
administration.
A) the entire set of students who park at the university
B) the entire set of faculty, staff, and students who park at the university
C) the students who park at the university between 9 and 10 AM on Wednesdays
D) the 240 students about whom the data were collected
Objective: (1.3) Identify Elements of Statistics
14) Parking at a university has become a problem. University administrators are interested in determining the average
time it takes a student to find a parking spot. An administrator inconspicuously followed 140 students and
recorded how long it took each of them to find a parking spot. Identify the variable of interest to the university
administration.
A) time to find a parking spot B) number of empty parking spots
C) students who drive cars on campus D) number of students who cannot find a spot
Objective: (1.3) Identify Elements of Statistics
,15) An assembly line is operating satisfactorily if fewer than 5% of the phones produced per day are defective. To
check the quality of a day's production, the company randomly samples 30 phones from a day's production to test
for defects. Define the population of interest to the manufacturer.
A) the 30 responses: defective or not defective
B) all the phones produced during the day in question
C) the 5% of the phones that are defective
D) the 30 phones sampled and tested
Objective: (1.3) Identify Elements of Statistics
16) An insurance company conducted a study to determine the percentage of cardiologists who had been sued for
malpractice in the previous seven years. The sample was randomly chosen from a national directory of doctors.
What is the variable of interest in this study?
A) all cardiologists in the directory
B) the doctor's area of expertise (i.e., cardiology, pediatrics, etc.)
C) the responses: have been sued/have not been sued for malpractice in the last seven years
D) the number of doctors who are cardiologists
Objective: (1.3) Identify Elements of Statistics
17) A study attempted to estimate the proportion of Florida residents who were willing to spend more tax dollars on
protecting the Florida coastline from environmental disasters. Twenty-four hundred Florida residents were
surveyed.Which of the following is the population used in the study?
A) the 2,400 Florida residents who were surveyed
B) all Florida residents who lived along the coastline
C) Florida residents willing to spend more tax dollars protecting the coastline from environmental disasters
D) all Florida residents
Objective: (1.3) Identify Elements of Statistics
18) A study attempted to estimate the proportion of Florida residents who were willing to spend more tax dollars on
protecting the Florida beaches from environmental disasters. Forty-nine hundred Florida residents were
surveyed.Which of the following describes the variable of interest in the study?
A) the response to the question "Do you use the beach?"
B) the response to the question, "Are you willing to spend more tax dollars on protecting the Florida beaches
from environmental disasters?"
C) the response to the question "Do you live along the beach?"
D) the 4,900 Florida residents surveyed
Objective: (1.3) Identify Elements of Statistics
19) Parking at a large university has become a very big problem. University administrators are interested in
determining the average parking time (e.g. the time it takes a student to find a parking spot) of its students. An
administrator inconspicuously followed 250 students and carefully recorded their parking times. Identify the
population of interest to the university administration.
A) the 250 students that data was collected from
B) the entire set of students that park at the university
C) the parking time, defined to be the amount of time the student spent finding a parking spot
D) a single student that parks at the university
Objective: (1.3) Identify Elements of Statistics
, ANSWER KEYS
1) B
2) Statistics is the science of data that involves collecting, classifying, summarizing, organizing, analyzing,
and interpreting numerical information.
3) B
4) B
5) B
6) A
7) A
8) B
9) Descriptive: 17% of the students sampled (or 850) read at least one best-seller each month. Inferential:
Based on the survey, we estimate that about 17% of all high school students read at least one best-seller each
month.
10) D
11) A
12) A
13) A
14) A
15) B
16) C
17) D
18) B
19) B
