CHAPTER 1
THE WHERE, WHY, AND HOW OF DATA COLLECTION
TRUE/FALSE QUESTIONS
1-1 What Is Business Statistics?
1. Statistics is a discipline that involves tools and techniques used to describe data and
draw conclusions.
Answer: True (Easy)
Keywords: descriptive statistics
2. In this course, the term business statistics refers to the set of tools and techniques that
are used to convert information into meaningful data.
Answer: False (Easy)
Keywords: descriptive statistics and/or inferential statistics
3. Descriptive statistics allow a decision maker to reach a conclusion about a populations
based on a subset from the population.
Answer: False (Moderate)
Keywords: descriptive statistics and inferential statistics
4. An accountant has recently prepared a report for a client that contains a variety of
graphs and charts. In doing so, she has used descriptive statistical methods.
,Answer: True (Easy)
Keywords: descriptive statistics
5. Descriptive statistical tools include graphs, charts, and numerical measures.
Answer: True (Easy)
Keywords: descriptive statistics
6. A histogram is an example of a numerical measure.
Answer: False (Easy)
Keywords: descriptive statistics
7. Publications such as USA Today frequently use charts and graphs in their articles; this
shows the use of descriptive statistics.
Answer: True (Easy)
Keywords: descriptive statistics
8. A manufacturing manager has developed a table that shows the average production
volume each day for the past three weeks. The average production level is an example of a
numerical measure.
Answer: True (Easy)
Keywords: descriptive statistics
9. An accountant who recently examined 200 accounts from a company’s total of 4,000
accounts in an effort to estimate the percentage of all accounts that have incorrect journal
entries is using descriptive statistical analysis to reach the conclusion.
Answer: False (Moderate)
Keywords: descriptive statistics
,10. The editor of a local newspaper is interested in determining the percentage of
subscribers who read the paper’s editorials. The statistical technique that he would use is
called estimation.
Answer: True (Moderate)
Keywords: descriptive statistics
11. Hypothesis testing and estimation are two statistical tools that are used to draw
inferences about a large data set based on a subset of the data.
Answer: True (Easy)
Keywords: inferential statistics
12. Another term for the arithmetic average is the mean.
Answer: True (Easy)
Keywords: descriptive statistics, mean
13. Statistical inference would be used as the primary statistical tool by a quality control
manager who wishes to estimate the average weight of her company’s products.
Answer: True (Moderate)
Keywords: inferential statistics
14. A light bulb manufacturer wants to advertise the average life of their light bulbs so they
test a subset of light bulbs. This is an example of inferential statistics.
Answer: True (Moderate)
Keywords: inferential statistics
15. A sales manager has five salespeople. The following are the number of units sold by the
five salespeople during the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number
of units sold was 6 units.
Answer: True (Moderate)
, Keywords: descriptive statistics, mean
1-2 Tools for Collecting Data
16. Some of the most common methods of collecting data include experiments, telephone
surveys, mail questionnaires, and direct observations and personal interviews.
Answer: True (Easy)
Keywords: data collection
17. An experiment is a process that generates data as its outcome.
Answer: True (Easy)
Keywords: data collection
18. Experimental design is a plan for performing an experiment where the effects of one or
more factors on the variable of interest are measured.
Answer: True (Moderate)
Keywords: data collection, experiments
19. Typically, it is possible to include a larger number of questions in a phone survey than in
a mail survey since it takes less time to complete the survey over the phone.
Answer: False (Moderate)
Keywords: data collection
20. An internet based or emailed survey is not an alternative method of data collection.
Answer: False (Easy)
Keywords: data collection
21. An open-ended question requires respondents to choose from a short list of choices
THE WHERE, WHY, AND HOW OF DATA COLLECTION
TRUE/FALSE QUESTIONS
1-1 What Is Business Statistics?
1. Statistics is a discipline that involves tools and techniques used to describe data and
draw conclusions.
Answer: True (Easy)
Keywords: descriptive statistics
2. In this course, the term business statistics refers to the set of tools and techniques that
are used to convert information into meaningful data.
Answer: False (Easy)
Keywords: descriptive statistics and/or inferential statistics
3. Descriptive statistics allow a decision maker to reach a conclusion about a populations
based on a subset from the population.
Answer: False (Moderate)
Keywords: descriptive statistics and inferential statistics
4. An accountant has recently prepared a report for a client that contains a variety of
graphs and charts. In doing so, she has used descriptive statistical methods.
,Answer: True (Easy)
Keywords: descriptive statistics
5. Descriptive statistical tools include graphs, charts, and numerical measures.
Answer: True (Easy)
Keywords: descriptive statistics
6. A histogram is an example of a numerical measure.
Answer: False (Easy)
Keywords: descriptive statistics
7. Publications such as USA Today frequently use charts and graphs in their articles; this
shows the use of descriptive statistics.
Answer: True (Easy)
Keywords: descriptive statistics
8. A manufacturing manager has developed a table that shows the average production
volume each day for the past three weeks. The average production level is an example of a
numerical measure.
Answer: True (Easy)
Keywords: descriptive statistics
9. An accountant who recently examined 200 accounts from a company’s total of 4,000
accounts in an effort to estimate the percentage of all accounts that have incorrect journal
entries is using descriptive statistical analysis to reach the conclusion.
Answer: False (Moderate)
Keywords: descriptive statistics
,10. The editor of a local newspaper is interested in determining the percentage of
subscribers who read the paper’s editorials. The statistical technique that he would use is
called estimation.
Answer: True (Moderate)
Keywords: descriptive statistics
11. Hypothesis testing and estimation are two statistical tools that are used to draw
inferences about a large data set based on a subset of the data.
Answer: True (Easy)
Keywords: inferential statistics
12. Another term for the arithmetic average is the mean.
Answer: True (Easy)
Keywords: descriptive statistics, mean
13. Statistical inference would be used as the primary statistical tool by a quality control
manager who wishes to estimate the average weight of her company’s products.
Answer: True (Moderate)
Keywords: inferential statistics
14. A light bulb manufacturer wants to advertise the average life of their light bulbs so they
test a subset of light bulbs. This is an example of inferential statistics.
Answer: True (Moderate)
Keywords: inferential statistics
15. A sales manager has five salespeople. The following are the number of units sold by the
five salespeople during the past week: {5, 13, 6, 2, 4}. Based on the data, the mean number
of units sold was 6 units.
Answer: True (Moderate)
, Keywords: descriptive statistics, mean
1-2 Tools for Collecting Data
16. Some of the most common methods of collecting data include experiments, telephone
surveys, mail questionnaires, and direct observations and personal interviews.
Answer: True (Easy)
Keywords: data collection
17. An experiment is a process that generates data as its outcome.
Answer: True (Easy)
Keywords: data collection
18. Experimental design is a plan for performing an experiment where the effects of one or
more factors on the variable of interest are measured.
Answer: True (Moderate)
Keywords: data collection, experiments
19. Typically, it is possible to include a larger number of questions in a phone survey than in
a mail survey since it takes less time to complete the survey over the phone.
Answer: False (Moderate)
Keywords: data collection
20. An internet based or emailed survey is not an alternative method of data collection.
Answer: False (Easy)
Keywords: data collection
21. An open-ended question requires respondents to choose from a short list of choices
