Business Statistics, Cdn. 2e (Sharpe) Chapter 2: Data

Business Statistics, Cdn. 2e (Sharpe)
Chapter 2: Data

Short Answer - Quiz A

1) The mission of a research firm is to "explore the impact of the Internet on families,
communities, work, home, and daily life." In August — September 2010 they 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: Canadian adults aged 18 and older
• What: online shopping
• When: August — September 2010
• Where: Canada
• How: telephone interviews
• Why: to explore the impact of the Internet on daily life, specifically online shopping
L.O.: 1

2) The following table displays some of the data collected by the above research firm in their
study of online shopping. List the variables in the data set. Indicate whether each variable is
categorical or quantitative. If the variable is quantitative, give the units.

Time (hours) per
Household Participated in Monthly amount week browsing online
Age Gender Income online auction? spent 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 ($), Monthly amount spent online ($), Time per
week browsing online retailers (hours).
L.O.: 2




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,3) In addition to the variables listed above, data were also collected on the variables listed below.
Indicate whether each is nominal or ordinal.
• Region (Urban, Suburban, Rural)
• Education (Less than High School, High School, College, University)
• Marital Status (Single, Widowed, Divorced, Married)
Answer:
• Region (Urban, Suburban, Rural)
Nominal
• Education (Less than High School, High School, College, University)
Ordinal
• Marital Status (Single, Widowed, Divorced, Married)
Nominal
L.O.: 2

4) For each of the following, 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
L.O.: 2




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,Short Answer - Quiz B

1) Consumer Reports Health routinely compares drugs in terms of effectiveness and safety.
Suppose that in the summer of 2010 they 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 2010
• Where: not specified,
• How: testing on drugs
• Why: to compare arthritis drugs it terms of effectiveness and safety
L.O.: 1

2) List the variables reported in the Consumer Reports Health article on drugs used to treat
arthritis. If the variable is quantitative, give the units. 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 ($)
L.O.: 2

3) The Human Resources Department of a large corporation maintains records on its employees.
The table 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 the units. If the variable
is categorical, indicate whether it is nominal or ordinal.

Employment Participates in Paycheck Benefit
Age Category Education Wellness Program? Deductions
32 Clerical High School Yes $250
52 Professional College No $120
60 Professional University Yes $0
28 Clerical High School No $120

Answer: Categorical: Employment Category (nominal), Education (ordinal), Participates in
Wellness Program? (nominal)
Quantitative: Age (years), Paycheck Benefit Deductions ($)
L.O.: 2



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, 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
L.O.: 2

Multiple Choice - Quiz C

1) In the fall of 2010 a research company conducted its Internet & Life Project through telephone
interviews about online shopping with a sample of Canadian adults aged 18 and older . Canadian
adults aged 18 and older constitute the ________ of the study.
A) Who
B) What
C) When
D) Where
E) How
Answer: A
L.O.: 1

2) A few of the variables for which data were collected in the Internet & Life Project study
include age, gender, income, and number of hours spent shopping online per month. Which of
the variables is categorical?
A) Age
B) Gender
C) Income
D) Number of hours spent shopping online
E) None
Answer: B
L.O.: 2

3) The Internet & Life Project study also asked respondents to indicate their education level on
the following scale: Less than High School, High School, Some College, College, University.
Which of the following statements is (are) true?
A) Education level is a time series variable.
B) Education level is nominal scaled.
C) Education level is a quantitative variable.
D) Education level is a categorical variable.
E) Both A and B
Answer: D
L.O.: 2

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