TEST BANK
Essentials of Modern Business Statistics with Microsoft Excel, by
Anderson
8th Edition
TEST BANK
,Chapter 1
Data and Statistics
Learning Objectives
1. Obtain an appreciation for the breadth of statistical applications in business and economics.
2. Understand the meaning of the terms elements, variables, and observations as they are used in
statistics.
3. Obtain an understanding of the difference between categorical, quantitative, cross-sectional, and
time series data.
4. Learn about the sources of data for statistical analysis both internal and external to the firm.
5. Be aware of how errors can arise in data.
6. Know the meaning of descriptive statistics and statistical inference.
7. Be able to distinguish between a population and a sample.
8. Understand the role a sample plays in making statistical inferences about the population.
9. Know the meaning of the terms analytics, big data and data mining.
10. Be aware of ethical guidelines for statistical practice.
,
,Solutions:
1. Statistics can be referred to as numerical facts. In a broader sense, statistics is the field of study
dealing with the collection, analysis, presentation, and interpretation of data.
2. a. The ten elements are the ten tablet computers.
b. Five variables: Cost ($), Operating System, Display Size (inches), Battery Life (hours), CPU
Manufacturer
c. Categorical variables: Operating System and CPU Manufacturer
Quantitative variables: Cost ($), Display Size (inches), and Battery Life (hours)
d.
Variable Measurement Scale
Cost ($) Ratio
Operating System Nominal
Display Size (inches) Ratio
Battery Life (hours) Ratio
CPU Manufacturer Nominal
3. a. Average cost = 5829/10 = $582.90
b. Average cost with a Windows operating system = 3616/5 = $723.20
Average cost with an Android operating system = 1714/4 = $428.5
The average cost with a Windows operating system is much higher.
c. 2 of 10 or 20% use a CPU manufactured by TI OMAP.
d. 4 of 10 or 40% use an Android operating system.
4. a. There are eight elements in this data set; each element corresponds to one of the eight models of
cordless telephones.
b. Categorical variables: Voice Quality and Handset on Base
Quantitative variables: Price, Overall Score, and Talk Time
c. Price – ratio measurement
Overall Score – interval measurement
Voice Quality – ordinal measurement
Handset on Base – nominal measurement
Talk Time – ratio measurement
5. a. Average Price = 545/8 = $68.13
b. Average Talk Time = 71/8 = 8.875 hours
c. Percentage rated Excellent: 2 of 8 2/8 = .25, or 25%
4 -2
,6. a. Categorical
b. Quantitative
c. Categorical
d. Quantitative
e. Quantitative
7. a. Since there are five choices, the response is a categorical response.
b. The five responses are the labels for the customer responses. A nominal scale is being used.
8. a. 762
b. Categorical
c. Percentages
d. .67(762) = 510.54
510 or 511 respondents said they want the amendment to pass.
9. a. The population is employed individuals in the United States aged 25–29.
b. Have you earned a bachelor’s degree (or higher)?
c. Since the response is yes or no, the response is categorical.
10. a. Categorical
b. Percentages
c. 44 of 1080 respondents or approximately 4% strongly agree with allowing drivers of motor vehicles
to talk on a hand-held cell phone while driving.
d. 165 of the 1080 respondents or 15% of said they somewhat disagree and 741 or 69% said they
strongly disagree. Thus, there does not appear to be general support for allowing drivers of motor
vehicles to talk on a hand-held cell phone while driving.
11. a. Since the respondents answer with some time interval, the response is categorical.
b. .53(1503) = 796.59 or approximately 797
c. .10(1503) = 150.3 or approximately 150
12. a. The population is all visitors coming to the state of Hawaii.
b. Since airline flights carry the vast majority of visitors to the state, the use of questionnaires for
passengers during incoming flights is a good way to reach this population. The questionnaire
actually appears on the back of a mandatory plants and animals declaration form that passengers
must complete during the incoming flight. A large percentage of passengers complete the visitor
information questionnaire.
, c. Questions f1 fand f4 fprovide fquantitative fdata findicating fthe fnumber fof fvisits fand fthe
fnumber fof fdays fin fHawaii. fQuestions f2 fand f3 fprovide fcategorical fdata findicating fthe
fcategories fof freason ffor fthe ftrip fand fwhere fthe fvisitor fplans fto fstay.
13. a. Facebook f worldwide fadvertising frevenue.
b. Quantitative
c. Time fseries
d. Facebook fadvertising frevenue fis fincreasing fat fan fincreasing frate fover ftime.
14. a. The fgraph fof fthe ftime fseries ffollows:
350 Hertz Dollar Avis
300
250
Cars in Service (1000s)
200
150
100
50
0
Yea fr f 1 Yea fr f 2 Yea fr f 3 Yea fr f 4
b. In fYear f1 fand fYear f2 fHertz fwas fthe fclear fmarket fshare fleader. fIn fYear f3 fand fYear f4
fHertz fand fAvis fhave fapproximately fthe fsame fmarket fshare. fThe fmarket fshare ffor fDollar
fappears fto fbe fdeclining.
c. The fbar fchart ffor fYear f4 fis fshown fbelow.
4 -4
, 350
300
Cars in Service (1000s)
250
200
150
100
50
0
Hertz Dollar Avis
Company
This fchart fis fbased fon fcross-sectional fdata.
15. a. Quantitative f– fjewelry fsales fin fmillions fof fdollars
b. Time fseries
c. February, fMay, fNovember, fand fDecember
d. November fand fDecember fare flikely fdue fto fChristmas fsales. fFebruary fis flikely fdue fto
fValentine’s fDay. fMay fperhaps fbecause f of fgifts f for fgraduations fand fMother’s fDay.
16. a. Time fseries
b.
4.50
4.00
3.50
Sales ($ Billions)
3.00
2.50
2.00
1.50
1.00
0.50
0.00
1 2 3 4
Year
c. Sales fappear fto fbe fincreasing fin fa flinear ffashion.
17. Internal fdata fon fsalaries fof fother femployees fcan fbe fobtained ffrom fthe fpersonnel
fdepartment. fExternal fdata fmight fbe f obtained ffrom fthe fDepartment fof fLabor for findustry
fassociations.
Essentials of Modern Business Statistics with Microsoft Excel, by
Anderson
8th Edition
TEST BANK
,Chapter 1
Data and Statistics
Learning Objectives
1. Obtain an appreciation for the breadth of statistical applications in business and economics.
2. Understand the meaning of the terms elements, variables, and observations as they are used in
statistics.
3. Obtain an understanding of the difference between categorical, quantitative, cross-sectional, and
time series data.
4. Learn about the sources of data for statistical analysis both internal and external to the firm.
5. Be aware of how errors can arise in data.
6. Know the meaning of descriptive statistics and statistical inference.
7. Be able to distinguish between a population and a sample.
8. Understand the role a sample plays in making statistical inferences about the population.
9. Know the meaning of the terms analytics, big data and data mining.
10. Be aware of ethical guidelines for statistical practice.
,
,Solutions:
1. Statistics can be referred to as numerical facts. In a broader sense, statistics is the field of study
dealing with the collection, analysis, presentation, and interpretation of data.
2. a. The ten elements are the ten tablet computers.
b. Five variables: Cost ($), Operating System, Display Size (inches), Battery Life (hours), CPU
Manufacturer
c. Categorical variables: Operating System and CPU Manufacturer
Quantitative variables: Cost ($), Display Size (inches), and Battery Life (hours)
d.
Variable Measurement Scale
Cost ($) Ratio
Operating System Nominal
Display Size (inches) Ratio
Battery Life (hours) Ratio
CPU Manufacturer Nominal
3. a. Average cost = 5829/10 = $582.90
b. Average cost with a Windows operating system = 3616/5 = $723.20
Average cost with an Android operating system = 1714/4 = $428.5
The average cost with a Windows operating system is much higher.
c. 2 of 10 or 20% use a CPU manufactured by TI OMAP.
d. 4 of 10 or 40% use an Android operating system.
4. a. There are eight elements in this data set; each element corresponds to one of the eight models of
cordless telephones.
b. Categorical variables: Voice Quality and Handset on Base
Quantitative variables: Price, Overall Score, and Talk Time
c. Price – ratio measurement
Overall Score – interval measurement
Voice Quality – ordinal measurement
Handset on Base – nominal measurement
Talk Time – ratio measurement
5. a. Average Price = 545/8 = $68.13
b. Average Talk Time = 71/8 = 8.875 hours
c. Percentage rated Excellent: 2 of 8 2/8 = .25, or 25%
4 -2
,6. a. Categorical
b. Quantitative
c. Categorical
d. Quantitative
e. Quantitative
7. a. Since there are five choices, the response is a categorical response.
b. The five responses are the labels for the customer responses. A nominal scale is being used.
8. a. 762
b. Categorical
c. Percentages
d. .67(762) = 510.54
510 or 511 respondents said they want the amendment to pass.
9. a. The population is employed individuals in the United States aged 25–29.
b. Have you earned a bachelor’s degree (or higher)?
c. Since the response is yes or no, the response is categorical.
10. a. Categorical
b. Percentages
c. 44 of 1080 respondents or approximately 4% strongly agree with allowing drivers of motor vehicles
to talk on a hand-held cell phone while driving.
d. 165 of the 1080 respondents or 15% of said they somewhat disagree and 741 or 69% said they
strongly disagree. Thus, there does not appear to be general support for allowing drivers of motor
vehicles to talk on a hand-held cell phone while driving.
11. a. Since the respondents answer with some time interval, the response is categorical.
b. .53(1503) = 796.59 or approximately 797
c. .10(1503) = 150.3 or approximately 150
12. a. The population is all visitors coming to the state of Hawaii.
b. Since airline flights carry the vast majority of visitors to the state, the use of questionnaires for
passengers during incoming flights is a good way to reach this population. The questionnaire
actually appears on the back of a mandatory plants and animals declaration form that passengers
must complete during the incoming flight. A large percentage of passengers complete the visitor
information questionnaire.
, c. Questions f1 fand f4 fprovide fquantitative fdata findicating fthe fnumber fof fvisits fand fthe
fnumber fof fdays fin fHawaii. fQuestions f2 fand f3 fprovide fcategorical fdata findicating fthe
fcategories fof freason ffor fthe ftrip fand fwhere fthe fvisitor fplans fto fstay.
13. a. Facebook f worldwide fadvertising frevenue.
b. Quantitative
c. Time fseries
d. Facebook fadvertising frevenue fis fincreasing fat fan fincreasing frate fover ftime.
14. a. The fgraph fof fthe ftime fseries ffollows:
350 Hertz Dollar Avis
300
250
Cars in Service (1000s)
200
150
100
50
0
Yea fr f 1 Yea fr f 2 Yea fr f 3 Yea fr f 4
b. In fYear f1 fand fYear f2 fHertz fwas fthe fclear fmarket fshare fleader. fIn fYear f3 fand fYear f4
fHertz fand fAvis fhave fapproximately fthe fsame fmarket fshare. fThe fmarket fshare ffor fDollar
fappears fto fbe fdeclining.
c. The fbar fchart ffor fYear f4 fis fshown fbelow.
4 -4
, 350
300
Cars in Service (1000s)
250
200
150
100
50
0
Hertz Dollar Avis
Company
This fchart fis fbased fon fcross-sectional fdata.
15. a. Quantitative f– fjewelry fsales fin fmillions fof fdollars
b. Time fseries
c. February, fMay, fNovember, fand fDecember
d. November fand fDecember fare flikely fdue fto fChristmas fsales. fFebruary fis flikely fdue fto
fValentine’s fDay. fMay fperhaps fbecause f of fgifts f for fgraduations fand fMother’s fDay.
16. a. Time fseries
b.
4.50
4.00
3.50
Sales ($ Billions)
3.00
2.50
2.00
1.50
1.00
0.50
0.00
1 2 3 4
Year
c. Sales fappear fto fbe fincreasing fin fa flinear ffashion.
17. Internal fdata fon fsalaries fof fother femployees fcan fbe fobtained ffrom fthe fpersonnel
fdepartment. fExternal fdata fmight fbe f obtained ffrom fthe fDepartment fof fLabor for findustry
fassociations.
