, BUSI 230 | EXAM 1
Introduction to Probability and Statistics · Liberty University
100-Question Original Practice Examination · 2026/2027 Edition
1. A retail analyst records revenue for 8 out of 240 randomly selected stores. Which group is
thesample?
A) The 8 observed stores
B) All 240 stores
C) Every store in the country
D) The stores not observed
Correct Answer: A) The 8 observed stores
Rationale: The sample is the subset from which actual data were collected: these 8 stores. The population is the
complete set of 240 stores to which the analyst hopes to generalize. Confusing the sampling frame or unobserved
units with the observed sample would misidentify the data source.
2. A chain calculates the true mean weekly sales across all its 100 locations. What kind
ofmeasure is that mean?
A) A population parameter
B) A sample statistic
C) A sample proportion
D) A random sample
Correct Answer: A) A population parameter
Rationale: A parameter summarizes a characteristic of an entire population, here every location in the chain. A
statistic instead describes observations from a subset. The distinction depends on the group measured, not on
whether the variable is money or whether the calculation uses a mean.
3. A manager codes each order by delivery method without ranking the categories.
Whatmeasurement level is appropriate?
A) Ordinal
B) Nominal
C) Interval
D) Ratio
Correct Answer: B) Nominal
Rationale: Nominal variables classify items into unordered categories. Ordinal data require a meaningful ranking,
whereas interval and ratio levels require numerical distances. The manager can count and compare category
frequencies, but taking an arithmetic average of category codes would have no substantive meaning.
4. Customer reviews are coded as poor, fair, good, or excellent for a new service in region 1.
Whatis the measurement level?
BUSI 230 · Original Practice Examination · 2026/2027 1
, A) Nominal
B) Ordinal
C) Interval
D) Ratio
Correct Answer: B) Ordinal
Rationale: The response labels have an inherent order from poor to excellent, so the data are ordinal. The spacing
between adjacent ratings cannot be presumed equal. Nominal data lack ranking, while interval and ratio
measurements permit defensible differences in measurement units.
5. A call center records the number of customer complaints received during a 5-hour shift.
Whichtype of variable is the complaint count?
A) Continuous quantitative
B) Nominal categorical
C) Ordinal categorical
D) Discrete quantitative
Correct Answer: D) Discrete quantitative
Rationale: Complaint counts are quantitative because they describe amounts and discrete because they take
nonnegative whole-number values. A continuous variable could take fractional values throughout a range. Counts
should not be treated as categories merely because each possible number can be listed.
6. An engineer measures the exact time, in seconds, needed to package each item on
assemblyline 1. Which description best fits the variable?
A) Continuous quantitative
B) Discrete quantitative
C) Nominal categorical
D) Ordinal categorical
Correct Answer: A) Continuous quantitative
Rationale: Elapsed time is measured on a numeric continuum and can, in principle, include fractions of a second.
Discrete variables are typically counts. Categorizing elapsed times into bins for a report would not change the
underlying variable from quantitative to categorical.
7. Five daily transaction counts are 7, 9, 11, 13, 15. What is their arithmetic mean?
A) 9
B) 13
C) 15
D) 11
Correct Answer: D) 11
BUSI 230 · Original Practice Examination · 2026/2027 2
Introduction to Probability and Statistics · Liberty University
100-Question Original Practice Examination · 2026/2027 Edition
1. A retail analyst records revenue for 8 out of 240 randomly selected stores. Which group is
thesample?
A) The 8 observed stores
B) All 240 stores
C) Every store in the country
D) The stores not observed
Correct Answer: A) The 8 observed stores
Rationale: The sample is the subset from which actual data were collected: these 8 stores. The population is the
complete set of 240 stores to which the analyst hopes to generalize. Confusing the sampling frame or unobserved
units with the observed sample would misidentify the data source.
2. A chain calculates the true mean weekly sales across all its 100 locations. What kind
ofmeasure is that mean?
A) A population parameter
B) A sample statistic
C) A sample proportion
D) A random sample
Correct Answer: A) A population parameter
Rationale: A parameter summarizes a characteristic of an entire population, here every location in the chain. A
statistic instead describes observations from a subset. The distinction depends on the group measured, not on
whether the variable is money or whether the calculation uses a mean.
3. A manager codes each order by delivery method without ranking the categories.
Whatmeasurement level is appropriate?
A) Ordinal
B) Nominal
C) Interval
D) Ratio
Correct Answer: B) Nominal
Rationale: Nominal variables classify items into unordered categories. Ordinal data require a meaningful ranking,
whereas interval and ratio levels require numerical distances. The manager can count and compare category
frequencies, but taking an arithmetic average of category codes would have no substantive meaning.
4. Customer reviews are coded as poor, fair, good, or excellent for a new service in region 1.
Whatis the measurement level?
BUSI 230 · Original Practice Examination · 2026/2027 1
, A) Nominal
B) Ordinal
C) Interval
D) Ratio
Correct Answer: B) Ordinal
Rationale: The response labels have an inherent order from poor to excellent, so the data are ordinal. The spacing
between adjacent ratings cannot be presumed equal. Nominal data lack ranking, while interval and ratio
measurements permit defensible differences in measurement units.
5. A call center records the number of customer complaints received during a 5-hour shift.
Whichtype of variable is the complaint count?
A) Continuous quantitative
B) Nominal categorical
C) Ordinal categorical
D) Discrete quantitative
Correct Answer: D) Discrete quantitative
Rationale: Complaint counts are quantitative because they describe amounts and discrete because they take
nonnegative whole-number values. A continuous variable could take fractional values throughout a range. Counts
should not be treated as categories merely because each possible number can be listed.
6. An engineer measures the exact time, in seconds, needed to package each item on
assemblyline 1. Which description best fits the variable?
A) Continuous quantitative
B) Discrete quantitative
C) Nominal categorical
D) Ordinal categorical
Correct Answer: A) Continuous quantitative
Rationale: Elapsed time is measured on a numeric continuum and can, in principle, include fractions of a second.
Discrete variables are typically counts. Categorizing elapsed times into bins for a report would not change the
underlying variable from quantitative to categorical.
7. Five daily transaction counts are 7, 9, 11, 13, 15. What is their arithmetic mean?
A) 9
B) 13
C) 15
D) 11
Correct Answer: D) 11
BUSI 230 · Original Practice Examination · 2026/2027 2
