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,True/False
1. Virtually all areas of business use statistics in decision making.
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Ans: True
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Response: See section 1.1, Statistics in Business
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Difficulty: Easy
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Learning Objective: 1.1: List quantitative and graphical examples of statistics within a business
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context.
2. The complete collection of all entities under study is called the sample.
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Ans: False
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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3. A portion or subset of the entities under study is called the statistic.
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Ans: False
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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4. A descriptive measure of the population is called a parameter.
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Ans: True
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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,5. A census is the process of gathering data on all the entities in the population.
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Ans: True
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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6. Statistics is commonly divided into two branches called descriptive statistics and summary
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statistics.
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Ans: False
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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7. A descriptive measure of the sample is called a statistic.
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Ans: True
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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8. Gathering data from a sample to reach conclusions about the population from which the
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sample was drawn is called descriptive statistics.
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Ans: False
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Medium
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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, 9. Calculation of population parameters is usually either impossible or excessively time
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consuming and costly.
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Ans: True
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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10. The basis for inferential statistics is the ability to make decisions about population parameters
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without having to complete a census of the population.
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Ans: True
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Response: See section 1.2, Basic Statistical Concepts
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Difficulty: Easy
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Learning Objective: 1.2: define important statistical terms, including population, sample, and
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parameter, as they relate to descriptive and inferential statistics.
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11. All numerical data must be analyzed statistically in the same way because all of them are
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represented by numbers.
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Ans: False
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Response: See section 1.4, Data Measurement
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Difficulty: Medium
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Learning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval, and
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ratio.
12. The manner in which numerical data can be analyzed statistically depends on the level of data
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measurement represented by numbers being analyzed.
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Ans: True
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Response: See section 1.4, Data Measurement
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Difficulty: Medium
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Learning Objective: 1.4: Compare the four different levels of data: nominal, ordinal, interval, and
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ratio.