Test Bank For Basic Business Statistics 14th Edition Berenson Full Chapter Updated 2024.

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, Organizing and Visualizing Variables 2-1




Test Bank For Basic Business Statistics 14th
Edition Berenson Full
Chapter Updated 2024.




CHAPTER 2: ORGANIZING AND VISUALIZING
VARIABLES
SCENARIO 2-1

An insurance company evaluates many numerical variables about a person before deciding on an
appropriate rate for automobile insurance. A representative from a local insurance agency selected a
random sample of insured drivers and recorded, X, the number of claims each made in the last 3
years, with the following results.
X f
1 14
2 18
3 12
4 5
5 1

1. Referring to Scenario 2-1, how many drivers are represented in the sample?
a) 5
b) 15
c) 18
d) 50

ANSWER:
d
TYPE: MC DIFFICULTY: Easy
KEYWORDS: frequency distribution

2. Referring to Scenario 2-1, how many total claims are represented in the sample?
a) 15
b) 50
c) 111

, d) 250

ANSWER:
c
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: interpretation, frequency distribution

3. A type of vertical bar chart in which the categories are plotted in the descending rank order of the
magnitude of their frequencies is called a
a) contingency table.
b) Pareto chart.
c) stem-and-leaf display.
d) pie chart.

ANSWER:
b
TYPE: MC DIFFICULTY: Easy
KEYWORDS: Pareto chart
SCENARIO 2-2