Groebner Business Statistics: A Decision Making Approach 11e
b b b b b b b
bChapter 1 Test
b b
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
b b b b b b b b b b b b b b
1) Statistics is a discipline that involves tools and techniques used to describe data and draw conclusions.
b b b b b b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
2) In this course, the term business statistics refers to the set of tools and techniques that are used to convert
b b b b b b b b b b b b b b b b b b b
b information into meaningful data. b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
3) Descriptive statistics allow a decision maker to reach a conclusion about a population based on a subset from the
b b b b b b b b b b b b b b b b b b
b population.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
4) The editor of a local newspaper is interested in determining the percentage of subscribers who read the paper's
b b b b b b b b b b b b b b b b b
b editorials. The statistical technique that he would use is called estimation.
b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
5) Another term for the arithmetic average is the mean.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
6) A sales manager has five salespeople. The following are the number of units sold by the five salespeople during
b b b b b b b b b b b b b b b b b b
b the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number of units sold was 6 units.
b b b b b b b b b b b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
7) The use of charts and graphs is an example of:
b b b b b b b b b
A) inferential statistics. b B) hypothesis testing.
b b
C) descriptive statistics.
b b D) estimation.
b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
8) When an administrator at a local hospital prepares a series of charts and graphs pertaining to the patients that
b b b b b b b b b b b b b b b b b b
bhave stayed at the hospital during the past month, she is using which general category of statistical
b b b b b b b b b b b b b b b b
banalysis?
A) Descriptive statistics B) Quantitative statistics
b b b
C) Inferential statistics
b D) Random samplingb b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
1
, 9) Which of the following is an example of graphs used to describe data?
b b b b b b b b b b b b
A) Histograms B) Bar charts b b
C) Both A and B are correct.
b b D) None of the above.
b b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
10) When a marketing manager surveys a few of the customers for the purpose of drawing a conclusion about the
b b b b b b b b b b b b b b b b b b
bentire list of customers, she is applying:
b b b b b b
A) inferential statistics. B) descriptive statistics.b b b
C) numerical measures.
b D) quantitative models. b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
11) When the park ranger at Yellowstone National Park reports the average length of time that visitors spend in the
b b b b b b b b b b b b b b b b b b
bpark, he is using: b b b
A) numerical measures. B) histograms or bar charts.
b b b b b
C) statistical charts.
b D) graphical tools. b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
12) A consumer products company is considering introducing a new product nationally. To help make the decision, it
b b b b b b b b b b b b b b b b
bfirst conducts a test market by selling the product for a few months in one city. This is an example of:
b b b b b b b b b b b b b b b b b b b b
A) charts and graphs. b B) hypothesis testing.b b b
C) descriptive statistics.
b D) estimation. b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
13) A political poll that is used to indicate the percentage of voters who will vote for a particular candidate makes use
b b b b b b b b b b b b b b b b b b b b
b of which of the following?
b b b b
A) Hypothesis testing B) Numerical analysis C) Estimation b D) Both B and C b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
14) The company that makes a new weight loss pill claims that people who use this pill according to instructions will
b b b b b b b b b b b b b b b b b b b
blose an average of 20 pounds during a four-month period. They say the claim is based on a study of 300 people.
b b b b b b b b b b b b b b b b b b b b b
b Which of the following statistical methods was most likely used to arrive at the company's conclusion?
b b b b b b b b b b b b b b b
A) Hypothesis testing B) Estimation C) Bar charts D) Histograms
b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
15) When the California Highway Patrol states that a study of drivers on a rural highway shows that the average
b b b b b b b b b b b b b b b b b b
bspeed is between 62.5 mph and 64.5 mph, they are most likely basing this statement on:
b b b b b b b b b b b b b b b
A) descriptive statistics. B) graphical analysis. b b b
C) hypothesis testing.
b D) estimation. b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
16) The summaries of data, which may be in forms of tabular, graphical, or numerical, are referred to as:
b b b b b b b b b b b b b b b b b
A) inferential statistics. B) statistical inference. b b b
C) report generation.
b bD) descriptive statistics. b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
2
, 17) Based on a survey of 400 students in a university in which 20 percent indicated that they were business majors.
b b b b b b b b b b b b b b b b b b b
The university student newspaper reported that "20 percent of all the students at the university are business
b b b b b b b b b b b b b b b b b
majors." This report is an example of:
b b b b b b b
A) statistical inference. B) a sample. b b b
C) descriptive statistics.
b D) a population. b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
b b b b b b b b b b b b b b
18) What is meant by the term statistical inference?
b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
19) Discuss the differences and similarities between statistical estimation and statistical hypothesis testing.
b b b b b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
20) Discuss the two major types of descriptive statistics.
b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
21) What are the major categories of statistical tools that will be covered in this course?
b b b b b b b b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
b b b b b b b b b b b b b b
22) An accountant has recently prepared a report for a client that contains a variety of graphs and charts. In doing so,
b b b b b b b b b b b b b b b b b b b b
she has used descriptive statistical methods.
b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
23) Descriptive statistical tools include graphs, charts, and numerical measures.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
24) A histogram is an example of a numerical measure.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
25) Companies frequently use charts and graphs in their regular communications with stockholders and investors; this
b b b b b b b b b b b b b b
shows the use of descriptive statistics.
b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
26) A manufacturing manager has developed a table that shows the average production volume each day for the past
b b b b b b b b b b b b b b b b b
three weeks. The average production level is an example of a numerical measure.
b b b b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
3
, 27) Which of the following is an example of graphs used to describe data?
b b b b b b b b b b b b
A) Histograms B) Bar charts b b
C) Both A and B are correct.
b b D) None of the above.
b b b b b b b b
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
28) The Biltmore Hotel manager is getting ready to make a presentation that she hopes will justify adding additional
b b b b b b b b b b b b b b b b b
staff. As part of the presentation, she has constructed charts and graphs. The general type of statistical analysis
b b b b b b b b b b b b b b b b b b
she is using is:
b b b b
A) descriptive statistics. B) estimation. b b
C) hypothesis testing.
b D) inferential statistics.
b b b
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
29) An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in an effort to
b b b b b b b b b b b b b b b b b
estimate the percentage of all accounts that have incorrect journal entries is using descriptive statistical analysis to
b b b b b b b b b b b b b b b b b
reach the conclusion.
b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
30) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about a large data set
b b b b b b b b b b b b b b b b b b
based on a subset of the data.
b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
31) Statistical inference would be used as the primary statistical tool by a quality control manager who wishes to
b b b b b b b b b b b b b b b b b
estimate the average weight of her company's products.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
32) A light bulb manufacturer wants to advertise the average life of its light bulbs so it tests a subset of light bulbs.
b b b b b b b b b b b b b b b b b b b b b
bThis is an example of inferential statistics.
b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
33) A car manufacturer stated in its advertising that the gas mileage for its hybrids will be greater than 40 mpg on
b b b b b b b b b b b b b b b b b b b b
average. A consumer agency tested a sampling of the hybrids under a variety of conditions. Based on these tests,
b b b b b b b b b b b b b b b b b b b
the agency concluded that the manufacturer was justified in making this claim. The process described is an
b b b b b b b b b b b b b b b b b
bexample of: b
A) descriptive statistics. B) hypothesis testing.
b b b
C) statistical inference.
b D) Both B and C are correct.
b b b b b b b
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
34) Estimation and hypothesis testing are categories of:
b b b b b b
A) statistical charts. b B) numerical measurement.
b b
C) descriptive statistics.
b b D) inferential statistics.
b b
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
4
b b b b b b b
bChapter 1 Test
b b
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
b b b b b b b b b b b b b b
1) Statistics is a discipline that involves tools and techniques used to describe data and draw conclusions.
b b b b b b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
2) In this course, the term business statistics refers to the set of tools and techniques that are used to convert
b b b b b b b b b b b b b b b b b b b
b information into meaningful data. b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
3) Descriptive statistics allow a decision maker to reach a conclusion about a population based on a subset from the
b b b b b b b b b b b b b b b b b b
b population.
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
4) The editor of a local newspaper is interested in determining the percentage of subscribers who read the paper's
b b b b b b b b b b b b b b b b b
b editorials. The statistical technique that he would use is called estimation.
b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
5) Another term for the arithmetic average is the mean.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
6) A sales manager has five salespeople. The following are the number of units sold by the five salespeople during
b b b b b b b b b b b b b b b b b b
b the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number of units sold was 6 units.
b b b b b b b b b b b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
7) The use of charts and graphs is an example of:
b b b b b b b b b
A) inferential statistics. b B) hypothesis testing.
b b
C) descriptive statistics.
b b D) estimation.
b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
8) When an administrator at a local hospital prepares a series of charts and graphs pertaining to the patients that
b b b b b b b b b b b b b b b b b b
bhave stayed at the hospital during the past month, she is using which general category of statistical
b b b b b b b b b b b b b b b b
banalysis?
A) Descriptive statistics B) Quantitative statistics
b b b
C) Inferential statistics
b D) Random samplingb b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
1
, 9) Which of the following is an example of graphs used to describe data?
b b b b b b b b b b b b
A) Histograms B) Bar charts b b
C) Both A and B are correct.
b b D) None of the above.
b b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
10) When a marketing manager surveys a few of the customers for the purpose of drawing a conclusion about the
b b b b b b b b b b b b b b b b b b
bentire list of customers, she is applying:
b b b b b b
A) inferential statistics. B) descriptive statistics.b b b
C) numerical measures.
b D) quantitative models. b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
11) When the park ranger at Yellowstone National Park reports the average length of time that visitors spend in the
b b b b b b b b b b b b b b b b b b
bpark, he is using: b b b
A) numerical measures. B) histograms or bar charts.
b b b b b
C) statistical charts.
b D) graphical tools. b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
12) A consumer products company is considering introducing a new product nationally. To help make the decision, it
b b b b b b b b b b b b b b b b
bfirst conducts a test market by selling the product for a few months in one city. This is an example of:
b b b b b b b b b b b b b b b b b b b b
A) charts and graphs. b B) hypothesis testing.b b b
C) descriptive statistics.
b D) estimation. b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
13) A political poll that is used to indicate the percentage of voters who will vote for a particular candidate makes use
b b b b b b b b b b b b b b b b b b b b
b of which of the following?
b b b b
A) Hypothesis testing B) Numerical analysis C) Estimation b D) Both B and C b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
14) The company that makes a new weight loss pill claims that people who use this pill according to instructions will
b b b b b b b b b b b b b b b b b b b
blose an average of 20 pounds during a four-month period. They say the claim is based on a study of 300 people.
b b b b b b b b b b b b b b b b b b b b b
b Which of the following statistical methods was most likely used to arrive at the company's conclusion?
b b b b b b b b b b b b b b b
A) Hypothesis testing B) Estimation C) Bar charts D) Histograms
b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
15) When the California Highway Patrol states that a study of drivers on a rural highway shows that the average
b b b b b b b b b b b b b b b b b b
bspeed is between 62.5 mph and 64.5 mph, they are most likely basing this statement on:
b b b b b b b b b b b b b b b
A) descriptive statistics. B) graphical analysis. b b b
C) hypothesis testing.
b D) estimation. b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
16) The summaries of data, which may be in forms of tabular, graphical, or numerical, are referred to as:
b b b b b b b b b b b b b b b b b
A) inferential statistics. B) statistical inference. b b b
C) report generation.
b bD) descriptive statistics. b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
2
, 17) Based on a survey of 400 students in a university in which 20 percent indicated that they were business majors.
b b b b b b b b b b b b b b b b b b b
The university student newspaper reported that "20 percent of all the students at the university are business
b b b b b b b b b b b b b b b b b
majors." This report is an example of:
b b b b b b b
A) statistical inference. B) a sample. b b b
C) descriptive statistics.
b D) a population. b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
b b b b b b b b b b b b b b
18) What is meant by the term statistical inference?
b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
19) Discuss the differences and similarities between statistical estimation and statistical hypothesis testing.
b b b b b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
20) Discuss the two major types of descriptive statistics.
b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
21) What are the major categories of statistical tools that will be covered in this course?
b b b b b b b b b b b b b b
Objective: (1.1) Apply knowledge of descriptive or inferential statistical applications.
b b b b b b b b b
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
b b b b b b b b b b b b b b
22) An accountant has recently prepared a report for a client that contains a variety of graphs and charts. In doing so,
b b b b b b b b b b b b b b b b b b b b
she has used descriptive statistical methods.
b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
23) Descriptive statistical tools include graphs, charts, and numerical measures.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
24) A histogram is an example of a numerical measure.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
25) Companies frequently use charts and graphs in their regular communications with stockholders and investors; this
b b b b b b b b b b b b b b
shows the use of descriptive statistics.
b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
26) A manufacturing manager has developed a table that shows the average production volume each day for the past
b b b b b b b b b b b b b b b b b
three weeks. The average production level is an example of a numerical measure.
b b b b b b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
3
, 27) Which of the following is an example of graphs used to describe data?
b b b b b b b b b b b b
A) Histograms B) Bar charts b b
C) Both A and B are correct.
b b D) None of the above.
b b b b b b b b
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
28) The Biltmore Hotel manager is getting ready to make a presentation that she hopes will justify adding additional
b b b b b b b b b b b b b b b b b
staff. As part of the presentation, she has constructed charts and graphs. The general type of statistical analysis
b b b b b b b b b b b b b b b b b b
she is using is:
b b b b
A) descriptive statistics. B) estimation. b b
C) hypothesis testing.
b D) inferential statistics.
b b b
Objective: (1.1) Apply knowledge of statistical charts.
b b b b b b
29) An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in an effort to
b b b b b b b b b b b b b b b b b
estimate the percentage of all accounts that have incorrect journal entries is using descriptive statistical analysis to
b b b b b b b b b b b b b b b b b
reach the conclusion.
b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
30) Hypothesis testing and estimation are two statistical tools that are used to draw inferences about a large data set
b b b b b b b b b b b b b b b b b b
based on a subset of the data.
b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
31) Statistical inference would be used as the primary statistical tool by a quality control manager who wishes to
b b b b b b b b b b b b b b b b b
estimate the average weight of her company's products.
b b b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
32) A light bulb manufacturer wants to advertise the average life of its light bulbs so it tests a subset of light bulbs.
b b b b b b b b b b b b b b b b b b b b b
bThis is an example of inferential statistics.
b b b b b b
A) True
B) False
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
33) A car manufacturer stated in its advertising that the gas mileage for its hybrids will be greater than 40 mpg on
b b b b b b b b b b b b b b b b b b b b
average. A consumer agency tested a sampling of the hybrids under a variety of conditions. Based on these tests,
b b b b b b b b b b b b b b b b b b b
the agency concluded that the manufacturer was justified in making this claim. The process described is an
b b b b b b b b b b b b b b b b b
bexample of: b
A) descriptive statistics. B) hypothesis testing.
b b b
C) statistical inference.
b D) Both B and C are correct.
b b b b b b b
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
34) Estimation and hypothesis testing are categories of:
b b b b b b
A) statistical charts. b B) numerical measurement.
b b
C) descriptive statistics.
b b D) inferential statistics.
b b
Objective: (1.1) Apply knowledge of hypothesis testing and inference.
b b b b b b b b
4
