BUSINESS STATISTICS STUDY 2026 EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔Type I Error - ✔✔Rejecting the null hypothesis, Ho, when it is true.
✔✔Type II Error - ✔✔Accepting the null hypothesis when it is false.
✔✔Variance - ✔✔The arithmetic mean of the squared deviation from the mean.
✔✔Z-Value - ✔✔The signed distance between a selected value, designated x, and the
mean, divided by the standard deviation.
✔✔ Alpha - ✔✔The probability of committing a Type I Error.
✔✔Alternate Hypothesis - ✔✔A statement that is accepted if the sample data provide
sufficient evidence that the Ho is false.
✔✔Bar Chart - ✔✔A graph in which the classes are reported on the horizontal axis and
the class frequencies on the vertical axis. The class frequencies are proportional to the
heights of the bars.
✔✔Beta - ✔✔The probability of committing a Type II Error.
✔✔Central Limit Theorem - ✔✔If all samples of a particular size are selected from any
population, the sampling distribution of the sample mean is approximately a normal
distribution. This approximation improves with larger samples.
✔✔Chebyshev's Theorem - ✔✔For any set of observations (sample or population), the
proportion of the values that lie within k standard deviations of the mean is at least 1-1/k
squared where k is any constant greater than 1.
✔✔Cluster Sample - ✔✔A population is divided into clusters using naturally occurring
geographic or other boundaries. Then, clusters are randomly selected and a sample is
collected by randomly selecting from each cluster.
✔✔Coefficient of Correlation - ✔✔A measure of the strength of the linear relationship
between two variables.
✔✔Coefficient of Determination - ✔✔The proportion of the total variation in the
dependent variable Y that is explained, or accounted for, by the variation in the
independent variable X.
✔✔Collectively Exhaustive - ✔✔At least one of the events must occur when an
experiment is conducted.
ANSWERS SURE A+
✔✔Type I Error - ✔✔Rejecting the null hypothesis, Ho, when it is true.
✔✔Type II Error - ✔✔Accepting the null hypothesis when it is false.
✔✔Variance - ✔✔The arithmetic mean of the squared deviation from the mean.
✔✔Z-Value - ✔✔The signed distance between a selected value, designated x, and the
mean, divided by the standard deviation.
✔✔ Alpha - ✔✔The probability of committing a Type I Error.
✔✔Alternate Hypothesis - ✔✔A statement that is accepted if the sample data provide
sufficient evidence that the Ho is false.
✔✔Bar Chart - ✔✔A graph in which the classes are reported on the horizontal axis and
the class frequencies on the vertical axis. The class frequencies are proportional to the
heights of the bars.
✔✔Beta - ✔✔The probability of committing a Type II Error.
✔✔Central Limit Theorem - ✔✔If all samples of a particular size are selected from any
population, the sampling distribution of the sample mean is approximately a normal
distribution. This approximation improves with larger samples.
✔✔Chebyshev's Theorem - ✔✔For any set of observations (sample or population), the
proportion of the values that lie within k standard deviations of the mean is at least 1-1/k
squared where k is any constant greater than 1.
✔✔Cluster Sample - ✔✔A population is divided into clusters using naturally occurring
geographic or other boundaries. Then, clusters are randomly selected and a sample is
collected by randomly selecting from each cluster.
✔✔Coefficient of Correlation - ✔✔A measure of the strength of the linear relationship
between two variables.
✔✔Coefficient of Determination - ✔✔The proportion of the total variation in the
dependent variable Y that is explained, or accounted for, by the variation in the
independent variable X.
✔✔Collectively Exhaustive - ✔✔At least one of the events must occur when an
experiment is conducted.
