BUSINESS STATISTICS FINAL EXAM STUDY
GUIDE / NEWEST EXAM) 100+ QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
A+ GRADE / 2025
Alpha - ANS-The probability of committing a Type I Error.
Alternate Hypothesis - ANS-A statement that is accepted if the sample data provide sufficient evidence
that the Ho is false.
Bar Chart - ANS-A graph in which the classes are reported on the horizontal axis and the class
frequencies on the vertical axis. The class frequencies are proportional to the heights of the bars.
Beta - ANS-The probability of committing a Type II Error.
Central Limit Theorem - ANS-If all samples of a particular size are selected from any population, the
sampling distribution of the sample mean is approximately a normal distribution. This approximation
improves with larger samples.
Chebyshev's Theorem - ANS-For any set of observations (sample or population), the proportion of the
values that lie within k standard deviations of the mean is at least 1-1/k squared where k is any constant
greater than 1.
Cluster Sample - ANS-A population is divided into clusters using naturally occurring geographic or other
boundaries. Then, clusters are randomly selected and a sample is collected by randomly selecting from
each cluster.
Coefficient of Correlation - ANS-A measure of the strength of the linear relationship between two
variables.
Coefficient of Determination - ANS-The proportion of the total variation in the dependent variable Y that
is explained, or accounted for, by the variation in the independent variable X.
Collectively Exhaustive - ANS-At least one of the events must occur when an experiment is conducted.
, Conditional Probability - ANS-The probability of a particular event occurring, given that another event
has occurred.
Confidence Interval - ANS-A range of values constructed from a sample data so that the population
parameter is likely to occur within that range at a specified probability. The specified probability is called
the level of confidence.
Contingency Table - ANS-A table used to classify sample observations according to two or more
identifiable characteristics.
Correlation Analysis - ANS-A group of techniques to measure the association between two variables.
Critical Value - ANS-The dividing point between the region where the null hypothesis is rejected and the
region where it is not rejected.
Dependent Variable - ANS-The variable that is being predicted or estimated.
Descriptive Statistics - ANS-Methods of organizing, summarizing, and presenting data in an informative
way.
Discrete Random Variable - ANS-A random variable that can assume only certain clearly separated
values.
Empirical Probability - ANS-The probability of an event happening is the fraction of the time similar
events happened in the past.
Empirical Rule - ANS-For a symmetrical, bell-shaped frequency distribution, approximately 68% of the
observations will lie within + or -1 standard deviation of the mean; about 95% of the observations will lie
within + or -2 standard deviations of the mean; and practically all (99.7%) will lie within + or -3 standard
deviations of the mean.
Event - ANS-A collection of one or more outcomes of an experiment.
Experiment - ANS-A process that leads to the occurrence of one and only one of several possible
observations.
Frequency Distribution - ANS-A grouping of data into mutually exclusive classes showing the number of
observations in each class.
Frequency Table - ANS-A grouping of qualitative data into mutually exclusive classes showing the
number of observations in each class.
Histogram - ANS-A graph in which the classes are marked on the horizontal axis and the class
frequencies on the vertical axis. The class frequencies are represented by the heights of the bars and the
bars are drawn adjacent to each other.
Hypothesis - ANS-A statement about a population parameter subject to verification.
GUIDE / NEWEST EXAM) 100+ QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
A+ GRADE / 2025
Alpha - ANS-The probability of committing a Type I Error.
Alternate Hypothesis - ANS-A statement that is accepted if the sample data provide sufficient evidence
that the Ho is false.
Bar Chart - ANS-A graph in which the classes are reported on the horizontal axis and the class
frequencies on the vertical axis. The class frequencies are proportional to the heights of the bars.
Beta - ANS-The probability of committing a Type II Error.
Central Limit Theorem - ANS-If all samples of a particular size are selected from any population, the
sampling distribution of the sample mean is approximately a normal distribution. This approximation
improves with larger samples.
Chebyshev's Theorem - ANS-For any set of observations (sample or population), the proportion of the
values that lie within k standard deviations of the mean is at least 1-1/k squared where k is any constant
greater than 1.
Cluster Sample - ANS-A population is divided into clusters using naturally occurring geographic or other
boundaries. Then, clusters are randomly selected and a sample is collected by randomly selecting from
each cluster.
Coefficient of Correlation - ANS-A measure of the strength of the linear relationship between two
variables.
Coefficient of Determination - ANS-The proportion of the total variation in the dependent variable Y that
is explained, or accounted for, by the variation in the independent variable X.
Collectively Exhaustive - ANS-At least one of the events must occur when an experiment is conducted.
, Conditional Probability - ANS-The probability of a particular event occurring, given that another event
has occurred.
Confidence Interval - ANS-A range of values constructed from a sample data so that the population
parameter is likely to occur within that range at a specified probability. The specified probability is called
the level of confidence.
Contingency Table - ANS-A table used to classify sample observations according to two or more
identifiable characteristics.
Correlation Analysis - ANS-A group of techniques to measure the association between two variables.
Critical Value - ANS-The dividing point between the region where the null hypothesis is rejected and the
region where it is not rejected.
Dependent Variable - ANS-The variable that is being predicted or estimated.
Descriptive Statistics - ANS-Methods of organizing, summarizing, and presenting data in an informative
way.
Discrete Random Variable - ANS-A random variable that can assume only certain clearly separated
values.
Empirical Probability - ANS-The probability of an event happening is the fraction of the time similar
events happened in the past.
Empirical Rule - ANS-For a symmetrical, bell-shaped frequency distribution, approximately 68% of the
observations will lie within + or -1 standard deviation of the mean; about 95% of the observations will lie
within + or -2 standard deviations of the mean; and practically all (99.7%) will lie within + or -3 standard
deviations of the mean.
Event - ANS-A collection of one or more outcomes of an experiment.
Experiment - ANS-A process that leads to the occurrence of one and only one of several possible
observations.
Frequency Distribution - ANS-A grouping of data into mutually exclusive classes showing the number of
observations in each class.
Frequency Table - ANS-A grouping of qualitative data into mutually exclusive classes showing the
number of observations in each class.
Histogram - ANS-A graph in which the classes are marked on the horizontal axis and the class
frequencies on the vertical axis. The class frequencies are represented by the heights of the bars and the
bars are drawn adjacent to each other.
Hypothesis - ANS-A statement about a population parameter subject to verification.
