Essential Statistics in Business and.pdf

1) "Bob must be rich. He’s a lawyer, and lawyers make lots of money." This statement best illustrates which fallacy? A) Using poor survey methods B) Confusing significance with importance C) Unconscious bias D) Generalizing from an average to an individual Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Topic : 01.05 Critical Thinking AACSB : Reflective Thinking Learning Objective : 01-05 List and explain common statistical pitfalls. Bloom's : Apply Type : Static Accessibility : Screen Reader Compatible 2) Which is not an ethical obligation of a statistician? A) To know and follow accepted procedures B) To ensure data integrity and accurate calculations C) To support client wishes in drawing conclusions from the data D) To acknowledge sources of financial support Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 01-04 State the common challenges facing business professionals using statistics Bloom's : Understand Topic : 01.04 Statistical Challenges AACSB : Ethics Type : Static Accessibility : Screen Reader Compatible 3) Which of the following statements is correct? Version 1 3 A) A parameter is a measure that is calculated from a sample. B) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. C) For day-to-day business data analysis, most firms rely on a large staff of expert statisticians. D) A statistical test result that is significant also has practical importance. Question Details Learning Objective : 01-01 Define statistics and explain some of its uses. Topic : 01.01 What Is Statistics? Bloom's : Remember AACSB : Analytical Thinking Accessibility : Keyboard Navigation Difficulty : 2 Medium Type : Static Accessibility : Screen Reader Compatible 4) Which is least likely to be an application where statistics will be useful? A) Predicting whether an airfare is likely to rise or fall B) Designing the most desirable features for a ski pass C) Deciding whether offering Rice Krispies improves restaurant sales D) Choosing the wording of a corporate policy prohibiting smoking Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Topic : 01.03 Statistics in Business Difficulty : 2 Medium Learning Objective : 01-02 List reasons for a business student to study statistics. Bloom's : Apply Type : Static Accessibility : Screen Reader Compatible Version 1 4 5) Because 25 percent of the students in my morning statistics class watch eight or more hours of television a week, I conclude that 25 percent of all students at the university watch eight or more hours of television a week. The most important logical weakness of this conclusion would be A) relying on a sample instead of surveying every student. B) using a sample that may not be representative of all students. C) failing to correct for unconscious interviewer bias. D) assuming cause and effect where none exists. Question Details Accessibility : Keyboard Navigation Learning Objective : 01-04 State the common challenges facing business professionals using statistics Topic : 01.05 Critical Thinking AACSB : Reflective Thinking Bloom's : Apply Difficulty : 3 Hard Type : Static Accessibility : Screen Reader Compatible 6) Which of the following is not a characteristic of an ideal statistician? A) Technically current (e.g., software) B) Communicates well (both written and oral) C) Advocates client’s objectives D) Can deal with imperfect information Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Topic : 01.04 Statistical Challenges AACSB : Ethics Learning Objective : 01-03 Explain the uses of statistics in business. Type : Static Accessibility : Screen Reader Compatible Version 1 5 7) Which of the following statements is not true? A) Statistics helps refine theories through ongoing hypothesis testing. B) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. C) Estimating parameters is an important aspect of descriptive statistics. D) Statistical challenges include imperfect data and practical constraints. Question Details Learning Objective : 01-01 Define statistics and explain some of its uses. Bloom's : Remember AACSB : Analytical Thinking Accessibility : Keyboard Navigation Topic : 01.03 Statistics in Business Difficulty : 2 Medium Type : Static Accessibility : Screen Reader Compatible 8) Which is not a practical constraint facing the business researcher or data analyst? A) Time and money are always limited. B) The world is no laboratory, so some experiments are impractical. C) Research on human subjects is fraught with danger and ethical issues. D) Survey respondents usually will tell the truth if well compensated. Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 01-04 State the common challenges facing business professionals using statistics Bloom's : Understand Topic : 01.04 Statistical Challenges AACSB : Ethics Type : Static Accessibility : Screen Reader Compatible Version 1 6 9) Which is not an essential characteristic of a good business data analyst? A) Effective writer B) Stays current on techniques C) Has a Ph.D. or master’s degree in statistics D) Can deal with imperfect information Question Details Bloom's : Remember AACSB : Analytical Thinking Difficulty : 1 Easy Accessibility : Keyboard Navigation Topic : 01.04 Statistical Challenges Learning Objective : 01-03 Explain the uses of statistics in business. Type : Static Accessibility : Screen Reader Compatible 10) An ethical statistical consultant would not always A) follow accepted statistical procedures. B) support management’s desired conclusions. C) acknowledge sources of financial support. D) report limitations of the data. Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 01-04 State the common challenges facing business professionals using statistics Bloom's : Understand Topic : 01.04 Statistical Challenges AACSB : Ethics Type : Static Accessibility : Screen Reader Compatible Version 1 7 11) GM’s experience with ignition switches suggests that A) statistics is not applicable to automotive manufacturing. B) limited data may still contain important clues. C) good engineers can eliminate all risks. D) ignition switches are inherently dangerous. Question Details Learning Objective : 01-01 Define statistics and explain some of its uses. Difficulty : 1 Easy Accessibility : Keyboard Navigation Topic : 01.03 Statistics in Business AACSB : Reflective Thinking Bloom's : Apply Type : Static Accessibility : Screen Reader Compatible Answer Key Test name: Chapter 01 Test Bank 1) D Many lawyers do not work for big firms. (Remember My Cousin Vinnie?) 2) C The analyst must sometimes present findings that the client does not like. 3) B A parameter is a population characteristic. Firms often lack professional statisticians on staff, so all business graduates need some degree of statistical training to handle day-to-day problems. Sometimes an effect, while not due to chance, is too small to matter. 4) D Policy wording is probably left up to writers, not statisticians. 5) B Generalizing from a nonrandom sample is risky. The morning class may not be representative of all students. 6) C There is an unattractive name for a consultant who always agrees with the client. 7) C Estimating a population parameter is an inference rather than a description. 8) D Paid respondents may try to tell you what you want to hear. 9) C Version 1 28 No advanced degree is required for ordinary data analysis, which is why all business students study it. 10) B There is a nasty name for a consultant who always agrees with management. 11) B When small samples are all that we have, we must study them carefully, especially when the consequences are extreme (e.g., car crashes).