Test Bank For
Business Statistics A First Course, Canadian Edition, 2nd edition Norean R. Sharpe Richard D.
De Veaux Paul F. Velleman Jonathan Berkowitz
Chapters 1-4
Part 1 Exploring and Collecting Data
1 Quiz A
1) The mission of a Canadian research firm is to "explore the impact of the Internet on families,
communities, work, home, and daily life." In August - September 2013 the researchers in the firm
conducted telephone interviews with a sample of Canadian adults aged 18 and older about online
shopping. Describe the W's for the information given.
• Who:
• What:
• When:
• Where:
• How:
• Why:
Answer: Who: American adults aged 18 and older
What: Online shopping
When: August - September 2007
Where: United States
How: Telephone interviews
Why: To explore the impact of the internet on daily life, specifically shopping
Type: ES
Objective: 1
2) What is Statistics?
Answer: Statistics is a way of reasoning, along with a collection of tools and methods, designed to help
us understand the world.
Type: SA
Objective: 1
3) What are Data?
Answer: Data are values along with their context
Type: SA
Objective: 1
,4) The following data table displays some of the data collected by a Canadian research firm about online
shopping. List the variables in the data set and indicate whether each variable is categorical or
quantitative. If the variable is quantitative, give its unit of measurement.
Household Participated in Monthly amount Time (hours) per week
Age Gender Income online auction? spent online browsing online retailers
25 Male $55 000 Yes $250 6
47 Female $60 000 No $50 4
38 Female $110 000 No $120 10
30 Male $62 000 No $75 4
Answer: Categorical: Gender, Participated in online auction?
Quantitative: Age (years), Household income ($), Monthly online spending ($), Browsing time per week
(hours).
Type: ES
Objective: 1
5) In addition to the variables listed above, data were also collected on the following variables. Indicate
whether each variable is nominal or ordinal.
• Region (Urban, Suburban, Rural)
• Education (Less than High School, High School, College, and College +)
• Marital Status (Single, Widowed, Divorced, Married)
Answer: Region: Nominal
Education: Ordinal
Marital Status: Nominal
Type: ES
Objective: 1
6) For each of the following data, indicate whether the data are cross-sectional or time series:
• Weekly receipts at a clothing boutique
• Monthly demand for an automotive part
• Percentage of adults who bank online
Answer: Weekly receipts at a clothing boutique: Time series
Monthly demand for an automotive part: Time series
Percentage of adults who bank online: Cross-sectional
Type: ES
Objective: 3
,2 Quiz B
1) The Therapeutic Products Directorate (TPD) of Health Canada is responsible for assessing the safety,
efficacy and quality of a drug entering the Canadian market (http://www.hc-sc.gc.ca/). TPD routinely
compares drugs in terms of effectiveness and safety. In summer 2010, TPD scientists reviewed drugs used
to treat arthritis. Information was reported on convenience of use (how many pills required each day),
possible side effects (e.g., dizziness, stomach upset), cost, and ratings of effectiveness in relieving
symptoms (very effective, somewhat effective, not effective). Describe the W's for the information given.
• Who:
• What:
• When:
• Where:
• How:
• Why:
Answer: Who: Drugs to treat arthritis currently on the market
What: Convenience of use, side effects, cost, effectiveness ratings
When: Summer 2008
Where: Not specified, probably United States
How: Testing on drugs
Why: Information for potential consumers/patients
Type: ES
Objective: 1
2) The Therapeutic Products Directorate (TPD) of Health Canada is responsible to assess the safety,
efficacy and quality of a drug to enter Canadian market (http://www.hc-sc.gc.ca/). TPD routinely
compares drugs in terms of effectiveness and safety. In summer 2010, TPD scientists reviewed drugs used
to treat arthritis. Information was reported on convenience of use (how many pills required each day),
possible side effects (e.g., dizziness, stomach upset), cost, and ratings of effectiveness in relieving
symptoms (very effective, somewhat effective, not effective). List the variables reported in assessing the
safety and efficacy of drugs used to treat arthritis. If the variable is quantitative, give its unit of
measurement. If the variable is categorical, indicate whether it is nominal or ordinal.
Answer: Categorical: Side effect (nominal), effectiveness rating (ordinal)
Quantitative: Convenience of use (number of pills), Cost ($)
Type: ES
Objective: 1
, 3) The Human Resources Department of a large Canadian corporation maintains records on its
employees. The table below displays some of these data. List the variables in the data set. Indicate
whether each variable is categorical or quantitative. If the variable is quantitative, give its unit of
measurement. If the variable is categorical, indicate whether it is nominal or ordinal.
Employment Participates in Monthly amount
Age Category Education Wellness Program? spent online
32 Clerical High School Yes $250
52 Professional College No $120
60 Professional Junior College Yes $0
28 Clerical High School No $120
Answer: Categorical: Employment Category (nominal), Education (ordinal), Participation in Wellness
Program? (nominal)
Quantitative: Age (years), Paycheck Benefit Deductions ($)
Type: ES
Objective: 1
4) For each of the following, indicate whether the data are cross-sectional or time series:
• Company quarterly profits
• Percentage of American adults who work full time
• Historical closing stock prices
Answer: Company quarterly profits: Time series
Percentage of American adults who work full time: Cross-sectional
Historical closing stock prices: Time series
Type: ES
Objective: 3
5) What is an experiment?
Answer: A study in which the researcher manipulates factor levels to assess the effect of the factor on the
response.
Type: SA
Objective: 4
6) What are cross-sectional data?
Answer: Data taken from situations that vary over time but measured at a single time instant are said to
be a cross-section of the time series.
Type: SA
Objective: 3
Business Statistics A First Course, Canadian Edition, 2nd edition Norean R. Sharpe Richard D.
De Veaux Paul F. Velleman Jonathan Berkowitz
Chapters 1-4
Part 1 Exploring and Collecting Data
1 Quiz A
1) The mission of a Canadian research firm is to "explore the impact of the Internet on families,
communities, work, home, and daily life." In August - September 2013 the researchers in the firm
conducted telephone interviews with a sample of Canadian adults aged 18 and older about online
shopping. Describe the W's for the information given.
• Who:
• What:
• When:
• Where:
• How:
• Why:
Answer: Who: American adults aged 18 and older
What: Online shopping
When: August - September 2007
Where: United States
How: Telephone interviews
Why: To explore the impact of the internet on daily life, specifically shopping
Type: ES
Objective: 1
2) What is Statistics?
Answer: Statistics is a way of reasoning, along with a collection of tools and methods, designed to help
us understand the world.
Type: SA
Objective: 1
3) What are Data?
Answer: Data are values along with their context
Type: SA
Objective: 1
,4) The following data table displays some of the data collected by a Canadian research firm about online
shopping. List the variables in the data set and indicate whether each variable is categorical or
quantitative. If the variable is quantitative, give its unit of measurement.
Household Participated in Monthly amount Time (hours) per week
Age Gender Income online auction? spent online browsing online retailers
25 Male $55 000 Yes $250 6
47 Female $60 000 No $50 4
38 Female $110 000 No $120 10
30 Male $62 000 No $75 4
Answer: Categorical: Gender, Participated in online auction?
Quantitative: Age (years), Household income ($), Monthly online spending ($), Browsing time per week
(hours).
Type: ES
Objective: 1
5) In addition to the variables listed above, data were also collected on the following variables. Indicate
whether each variable is nominal or ordinal.
• Region (Urban, Suburban, Rural)
• Education (Less than High School, High School, College, and College +)
• Marital Status (Single, Widowed, Divorced, Married)
Answer: Region: Nominal
Education: Ordinal
Marital Status: Nominal
Type: ES
Objective: 1
6) For each of the following data, indicate whether the data are cross-sectional or time series:
• Weekly receipts at a clothing boutique
• Monthly demand for an automotive part
• Percentage of adults who bank online
Answer: Weekly receipts at a clothing boutique: Time series
Monthly demand for an automotive part: Time series
Percentage of adults who bank online: Cross-sectional
Type: ES
Objective: 3
,2 Quiz B
1) The Therapeutic Products Directorate (TPD) of Health Canada is responsible for assessing the safety,
efficacy and quality of a drug entering the Canadian market (http://www.hc-sc.gc.ca/). TPD routinely
compares drugs in terms of effectiveness and safety. In summer 2010, TPD scientists reviewed drugs used
to treat arthritis. Information was reported on convenience of use (how many pills required each day),
possible side effects (e.g., dizziness, stomach upset), cost, and ratings of effectiveness in relieving
symptoms (very effective, somewhat effective, not effective). Describe the W's for the information given.
• Who:
• What:
• When:
• Where:
• How:
• Why:
Answer: Who: Drugs to treat arthritis currently on the market
What: Convenience of use, side effects, cost, effectiveness ratings
When: Summer 2008
Where: Not specified, probably United States
How: Testing on drugs
Why: Information for potential consumers/patients
Type: ES
Objective: 1
2) The Therapeutic Products Directorate (TPD) of Health Canada is responsible to assess the safety,
efficacy and quality of a drug to enter Canadian market (http://www.hc-sc.gc.ca/). TPD routinely
compares drugs in terms of effectiveness and safety. In summer 2010, TPD scientists reviewed drugs used
to treat arthritis. Information was reported on convenience of use (how many pills required each day),
possible side effects (e.g., dizziness, stomach upset), cost, and ratings of effectiveness in relieving
symptoms (very effective, somewhat effective, not effective). List the variables reported in assessing the
safety and efficacy of drugs used to treat arthritis. If the variable is quantitative, give its unit of
measurement. If the variable is categorical, indicate whether it is nominal or ordinal.
Answer: Categorical: Side effect (nominal), effectiveness rating (ordinal)
Quantitative: Convenience of use (number of pills), Cost ($)
Type: ES
Objective: 1
, 3) The Human Resources Department of a large Canadian corporation maintains records on its
employees. The table below displays some of these data. List the variables in the data set. Indicate
whether each variable is categorical or quantitative. If the variable is quantitative, give its unit of
measurement. If the variable is categorical, indicate whether it is nominal or ordinal.
Employment Participates in Monthly amount
Age Category Education Wellness Program? spent online
32 Clerical High School Yes $250
52 Professional College No $120
60 Professional Junior College Yes $0
28 Clerical High School No $120
Answer: Categorical: Employment Category (nominal), Education (ordinal), Participation in Wellness
Program? (nominal)
Quantitative: Age (years), Paycheck Benefit Deductions ($)
Type: ES
Objective: 1
4) For each of the following, indicate whether the data are cross-sectional or time series:
• Company quarterly profits
• Percentage of American adults who work full time
• Historical closing stock prices
Answer: Company quarterly profits: Time series
Percentage of American adults who work full time: Cross-sectional
Historical closing stock prices: Time series
Type: ES
Objective: 3
5) What is an experiment?
Answer: A study in which the researcher manipulates factor levels to assess the effect of the factor on the
response.
Type: SA
Objective: 4
6) What are cross-sectional data?
Answer: Data taken from situations that vary over time but measured at a single time instant are said to
be a cross-section of the time series.
Type: SA
Objective: 3
