Business Statistics 2025 Exam 1 Questions
With Correct Answers
Statistics - correct answer(s) ✔✔ the science of collecting, organizing, presenting, analyzing,
and interpreting numerical data to assist in making more effective decisions
Descriptive Statistics - correct answer(s) ✔✔ methods of organizing, summarizing, and
presenting data in an informative way.
Inferential Statistics - correct answer(s) ✔✔ A decision, estimate, prediction, or generalization
about a population, based on a sample.
population - correct answer(s) ✔✔ a collection of all possible individuals, objects, or
measurements of interest.
sample - correct answer(s) ✔✔ a portion, or part, of the population of interest
Qualitative or Attribute variable - correct answer(s) ✔✔ the characteristic being studied is
nonnumeric.
EXAMPLES: Gender, religious affiliation, type of automobile owned, state of birth, eye color
are examples.
Quantitative variable - correct answer(s) ✔✔ information is reported numerically.
EXAMPLES: balance in your checking account,
minutes remaining in class, or number of children
, Continuous variable - correct answer(s) ✔✔ can assume any value within a specified range.
EXAMPLE: The pressure in a tire, the weight of a pork chop, professor income,
or the height of students in a class.
Discrete variables - correct answer(s) ✔✔ can only assume certain values and there are
usually "gaps" between values
EXAMPLE: the number of bedrooms in a house, or the number of hammers
sold at the local Home Depot (1,2,3,...,etc).
Nominal level - correct answer(s) ✔✔ **Data may be classified
data that is classified into categories and cannot be arranged in any particular order. Even
when the labels are numerically coded the categories have no logical order.
EXAMPLES: eye color, gender, religious affiliation, country, brand.
Ordinal level - correct answer(s) ✔✔ **Data may be ranked
involves data arranged in some order, but the differences between data values cannot be
determined or are meaningless.
EXAMPLE: During a taste test of 4 soft drinks, Mellow Yellow was ranked number 1, Sprite
number 2, Seven-up number 3, and Orange Crush number 4. Good, Average, Poor (rating).
Interval level - correct answer(s) ✔✔ **Meaningful Difference Between Values
similar to the ordinal level, with the additional property that meaningful amounts of
differences between data values can be determined. There is no natural zero point. Equal
differences of the characteristic are represented by equal differences in measurement.
EXAMPLE: Temperature on the Fahrenheit scale, shoe size
Ratio level - correct answer(s) ✔✔ Meaningful ZERO point and ration between values
With Correct Answers
Statistics - correct answer(s) ✔✔ the science of collecting, organizing, presenting, analyzing,
and interpreting numerical data to assist in making more effective decisions
Descriptive Statistics - correct answer(s) ✔✔ methods of organizing, summarizing, and
presenting data in an informative way.
Inferential Statistics - correct answer(s) ✔✔ A decision, estimate, prediction, or generalization
about a population, based on a sample.
population - correct answer(s) ✔✔ a collection of all possible individuals, objects, or
measurements of interest.
sample - correct answer(s) ✔✔ a portion, or part, of the population of interest
Qualitative or Attribute variable - correct answer(s) ✔✔ the characteristic being studied is
nonnumeric.
EXAMPLES: Gender, religious affiliation, type of automobile owned, state of birth, eye color
are examples.
Quantitative variable - correct answer(s) ✔✔ information is reported numerically.
EXAMPLES: balance in your checking account,
minutes remaining in class, or number of children
, Continuous variable - correct answer(s) ✔✔ can assume any value within a specified range.
EXAMPLE: The pressure in a tire, the weight of a pork chop, professor income,
or the height of students in a class.
Discrete variables - correct answer(s) ✔✔ can only assume certain values and there are
usually "gaps" between values
EXAMPLE: the number of bedrooms in a house, or the number of hammers
sold at the local Home Depot (1,2,3,...,etc).
Nominal level - correct answer(s) ✔✔ **Data may be classified
data that is classified into categories and cannot be arranged in any particular order. Even
when the labels are numerically coded the categories have no logical order.
EXAMPLES: eye color, gender, religious affiliation, country, brand.
Ordinal level - correct answer(s) ✔✔ **Data may be ranked
involves data arranged in some order, but the differences between data values cannot be
determined or are meaningless.
EXAMPLE: During a taste test of 4 soft drinks, Mellow Yellow was ranked number 1, Sprite
number 2, Seven-up number 3, and Orange Crush number 4. Good, Average, Poor (rating).
Interval level - correct answer(s) ✔✔ **Meaningful Difference Between Values
similar to the ordinal level, with the additional property that meaningful amounts of
differences between data values can be determined. There is no natural zero point. Equal
differences of the characteristic are represented by equal differences in measurement.
EXAMPLE: Temperature on the Fahrenheit scale, shoe size
Ratio level - correct answer(s) ✔✔ Meaningful ZERO point and ration between values
