TEST BANK
Applied Statistics in Business and Economics
by David Doane, Lori. Seward
7th Edition
ST
U
D
YL
AB
, Chapter 01
Overview of Statistics
True / False Questions
1. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
ST
True False
2. Inferential statistics refers to generalizing from a sample to a population, estimating
unknown parameters, drawing conclusions, and making decisions.
True False
3. Descriptive statistics refers to summarizing data rather than generalizing about the
U
population.
True False
D
4. Estimating parameters and testing hypotheses are important aspects of descriptive
statistics.
True False
YL
5. Inconsistent treatment of data by a researcher is a symptom of poor survey or
research design.
True False
6. Empirical data are collected through observations and/or experiments.
AB
True False
7. Business intelligence refers to collecting, storing, accessing, and analyzing data on
the company's operations in order to make better business decisions.
True False
8. When a statistician omits data contrary to her findings in a study, she is justified as
long as the sample supports her objective.
True False
9. A strong correlation between A and B would imply that B is caused by A.
True False
1-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,10. The post hoc fallacy says that when B follows A then B is caused by A.
True False
11. A statistical test may be significant yet have no practical importance.
True False
12. Valid statistical inferences cannot be made when sample sizes are small.
True False
13. Statistics is an essential part of critical thinking because it allows us to transform the
empirical evidence from a sample so it will agree with our preferred conclusions.
ST
True False
14. Statistical challenges include imperfect data, practical constraints, and ethical
dilemmas.
True False
15. A business data analyst needs a PhD in statistics.
U
True False
16. The science of statistics tells us whether the sample evidence is convincing.
D
True False
17. Pitfalls to consider in a statistical test include nonrandom samples, small sample size,
and lack of causal links.
YL
True False
18. In business communication, a table of numbers is preferred to a graph because it is
more able to convey meaning.
True False
AB
19. Statistical data analysis can often distinguish between real vs. perceived ethical
issues.
True False
20. Excel has limited use in business because advanced statistical software is widely
available.
True False
21. Statistics helps surmount language barriers to solve problems in multinational
businesses.
True False
1-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 22. Statistics can help you handle either too little or too much information.
True False
23. Predicting a presidential candidate's percentage of the statewide vote from a sample
of 800 voters would be an example of inferential statistics.
True False
24. Surveying electric vehicle owners would provide a representative random sample of
Americans' views on global warming policies.
True False
25. An example of descriptive statistics would be reporting the percentage of students in
ST
your accounting class that attended the review session for the last exam.
True False
Multiple Choice Questions
U
26. "Bob must be rich. He's a lawyer, and lawyers make lots of money." This statement
best illustrates which fallacy?
D
A. Using poor survey
methods
YL
B. Confusing significance with
importance
C. Unconscious
bias
D. Generalizing from an average to an
individual
AB
27. 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
1-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Applied Statistics in Business and Economics
by David Doane, Lori. Seward
7th Edition
ST
U
D
YL
AB
, Chapter 01
Overview of Statistics
True / False Questions
1. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
ST
True False
2. Inferential statistics refers to generalizing from a sample to a population, estimating
unknown parameters, drawing conclusions, and making decisions.
True False
3. Descriptive statistics refers to summarizing data rather than generalizing about the
U
population.
True False
D
4. Estimating parameters and testing hypotheses are important aspects of descriptive
statistics.
True False
YL
5. Inconsistent treatment of data by a researcher is a symptom of poor survey or
research design.
True False
6. Empirical data are collected through observations and/or experiments.
AB
True False
7. Business intelligence refers to collecting, storing, accessing, and analyzing data on
the company's operations in order to make better business decisions.
True False
8. When a statistician omits data contrary to her findings in a study, she is justified as
long as the sample supports her objective.
True False
9. A strong correlation between A and B would imply that B is caused by A.
True False
1-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,10. The post hoc fallacy says that when B follows A then B is caused by A.
True False
11. A statistical test may be significant yet have no practical importance.
True False
12. Valid statistical inferences cannot be made when sample sizes are small.
True False
13. Statistics is an essential part of critical thinking because it allows us to transform the
empirical evidence from a sample so it will agree with our preferred conclusions.
ST
True False
14. Statistical challenges include imperfect data, practical constraints, and ethical
dilemmas.
True False
15. A business data analyst needs a PhD in statistics.
U
True False
16. The science of statistics tells us whether the sample evidence is convincing.
D
True False
17. Pitfalls to consider in a statistical test include nonrandom samples, small sample size,
and lack of causal links.
YL
True False
18. In business communication, a table of numbers is preferred to a graph because it is
more able to convey meaning.
True False
AB
19. Statistical data analysis can often distinguish between real vs. perceived ethical
issues.
True False
20. Excel has limited use in business because advanced statistical software is widely
available.
True False
21. Statistics helps surmount language barriers to solve problems in multinational
businesses.
True False
1-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 22. Statistics can help you handle either too little or too much information.
True False
23. Predicting a presidential candidate's percentage of the statewide vote from a sample
of 800 voters would be an example of inferential statistics.
True False
24. Surveying electric vehicle owners would provide a representative random sample of
Americans' views on global warming policies.
True False
25. An example of descriptive statistics would be reporting the percentage of students in
ST
your accounting class that attended the review session for the last exam.
True False
Multiple Choice Questions
U
26. "Bob must be rich. He's a lawyer, and lawyers make lots of money." This statement
best illustrates which fallacy?
D
A. Using poor survey
methods
YL
B. Confusing significance with
importance
C. Unconscious
bias
D. Generalizing from an average to an
individual
AB
27. 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
1-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
