ESSENTIAL STATISTICS IN BUSINESS AND
ECONOMICS 3RD EDITION DOANE
REVIEW FULL QUESTION SET WITH
ACCURATE ANSWERS
◉ standard normal model
Answer: a normal model with a mean of 0 and a standard
deviation of 1
◉ 68-95-99.7 rule
Answer: in a normal model, about 68% of values fall within 1
standard deviation of the mean, about 95% fall within 2 standard
deviations of the mean, and about 99.7% fall within 3 standard
deviations of the mean
◉ normal percentile
Answer: this corresponding to a z-score gives the percentage of
values in a standard normal distribution found at that z-score or
below
◉ normal probability plot
Answer: a display to help assess whether a distribution of data is
approximately normal; if it is nearly straight, the data satisfy the
nearly normal condition
,◉ changing center and spread
Answer: doing this is equivalent to changing its units
◉ scatterplots
Answer: shows the relationship between two quantitative
variables measured on the same cases
◉ direction
Answer: a positive ____ or association means that, in general, as
one variable increases, so does the other; when increases in one
variable generally correspond to decreases in the other, the
association is negative
◉ form
Answer: the ____ we care about most is straight
◉ strength
Answer: a scatterplot shows an association that is this if there is
little scatter around the underlying relationship
◉ correlation
Answer: a numerical measure of the direction and strength of a
linear association
, ◉ outlier
Answer: a point that does not fit the overall pattern seen in the
scatterplot
◉ lurking variable
Answer: a variable other than x and y that simultaneously affects
both variables, accounting for the correlation between the two
◉ model
Answer: an equation or formula that simplifies and represents
reality
◉ linear model
Answer: an equation of the form y-hat = b0 + b1x
◉ residuals
Answer: the differences between data values and the
corresponding values predicted by the regression model; ____ =
observed value - predicted value
◉ predicted value
Answer: found by substituting the x-value in the regression
equation; they're the values on the fitted line
◉ slope
ECONOMICS 3RD EDITION DOANE
REVIEW FULL QUESTION SET WITH
ACCURATE ANSWERS
◉ standard normal model
Answer: a normal model with a mean of 0 and a standard
deviation of 1
◉ 68-95-99.7 rule
Answer: in a normal model, about 68% of values fall within 1
standard deviation of the mean, about 95% fall within 2 standard
deviations of the mean, and about 99.7% fall within 3 standard
deviations of the mean
◉ normal percentile
Answer: this corresponding to a z-score gives the percentage of
values in a standard normal distribution found at that z-score or
below
◉ normal probability plot
Answer: a display to help assess whether a distribution of data is
approximately normal; if it is nearly straight, the data satisfy the
nearly normal condition
,◉ changing center and spread
Answer: doing this is equivalent to changing its units
◉ scatterplots
Answer: shows the relationship between two quantitative
variables measured on the same cases
◉ direction
Answer: a positive ____ or association means that, in general, as
one variable increases, so does the other; when increases in one
variable generally correspond to decreases in the other, the
association is negative
◉ form
Answer: the ____ we care about most is straight
◉ strength
Answer: a scatterplot shows an association that is this if there is
little scatter around the underlying relationship
◉ correlation
Answer: a numerical measure of the direction and strength of a
linear association
, ◉ outlier
Answer: a point that does not fit the overall pattern seen in the
scatterplot
◉ lurking variable
Answer: a variable other than x and y that simultaneously affects
both variables, accounting for the correlation between the two
◉ model
Answer: an equation or formula that simplifies and represents
reality
◉ linear model
Answer: an equation of the form y-hat = b0 + b1x
◉ residuals
Answer: the differences between data values and the
corresponding values predicted by the regression model; ____ =
observed value - predicted value
◉ predicted value
Answer: found by substituting the x-value in the regression
equation; they're the values on the fitted line
◉ slope
