Test Bank for Statistics for Managers Using CHAPTER 2: ORGANIZING AND VISUALIZING
VARIABLES
Microsoft Excel, 8th Edition, David M. Levine
SCENARIO 2-1
An insurance company evaluates many numerical variables about a person before deciding on an
appropriate rate for automobile insurance. A representative from a local insurance agency selected a
random sample of insured drivers and recorded, X, the number of claims each made in the last 3
years, with the following results.
X f
1 14
2 18
3 12
4 5
5 1
1. Referring to Scenario 2-1, how many drivers are represented in the sample?
a) 5
b) 15
c) 18
d) 50
ANSWER:
d
TYPE: MC DIFFICULTY: Easy
KEYWORDS: frequency distribution
2. Referring to Scenario 2-1, how many total claims are represented in the sample?
a) 15
b) 50
c) 111
d) 250
ANSWER:
c
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: interpretation, frequency distribution
3. A type of vertical bar chart in which the categories are plotted in the descending rank order of the
magnitude of their frequencies is called a
a) contingency table.
b) Pareto chart.
c) stem-and-leaf display.
d) pie chart.
ANSWER:
b
TYPE: MC DIFFICULTY: Easy
KEYWORDS: Pareto chart
, Organizing and Visualizing Variables 2-3 2-4 Organizing and Visualizing Variables
SCENARIO 2-2 SCENARIO 2-3
At a meeting of information systems officers for regional offices of a national company, a survey was Every spring semester, the School of Business coordinates a luncheon with local business leaders for
taken to determine the number of employees the officers supervise in the operation of their graduating seniors, their families, and friends. Corporate sponsorship pays for the lunches of each of
departments, where X is the number of employees overseen by each information systems officer. the seniors, but students have to purchase tickets to cover the cost of lunches served to guests they
X f_ bring with them. The following histogram represents the attendance at the senior luncheon, where X is
1 7 the number of guests each graduating senior invited to the luncheon and f is the number of graduating
2 5 seniors in each category.
3 11
4 8 160 152
5 9
140
4. Referring to Scenario 2-2, how many regional offices are represented in the survey results? 120
a)5
b) 11 100
85
c) 15 80
d) 40
60
ANSWER: 40
d 18
17
TYPE: MC DIFFICULTY: Easy 20
3 0
KEYWORDS: interpretation, frequency distribution 0
0 1 2 3 4 5
Guests per Student
5. Referring to Scenario 2-2, across all of the regional offices, how many total employees were
supervised by those surveyed?
7. Referring to the histogram from Scenario 2-3, how many graduating seniors attended the
a) 15
luncheon?
b) 40
a) 4
c) 127
b) 152
d) 200
c) 275
d) 388
ANSWER:
c
ANSWER:
TYPE: MC DIFFICULTY: Moderate
c
KEYWORDS: interpretation, frequency distribution
TYPE: MC DIFFICULTY: Difficult
EXPLANATION: The number of graduating seniors is the sum of all the frequencies, f.
6. The width of each bar in a histogram corresponds to the
KEYWORDS: interpretation, histogram
a) differences between the boundaries of the class.
b) number of observations in each class.
8. Referring to the histogram from Scenario 2-3, if all the tickets purchased were used, how many
c) midpoint of each class.
guests attended the luncheon?
d) percentage of observations in each class.
a) 4
b) 152
ANSWER:
c) 275
a
d) 388
TYPE: MC DIFFICULTY: Easy
KEYWORDS: histogram
ANSWER:
d
TYPE: MC DIFFICULTY: Difficult
6
EXPLANATION: The total number of guests is X f
i1 i i
KEYWORDS: interpretation, histogram
, Organizing and Visualizing Variables 2-5 2-6 Organizing and Visualizing Variables
9. A professor of economics at a small Texas university wanted to determine what year in school SCENARIO 2-4
students were taking his tough economics course. Shown below is a pie chart of the results. What
percentage of the class took the course prior to reaching their senior year? A survey was conducted to determine how people rated the quality of programming available on
Seniors Freshmen television. Respondents were asked to rate the overall quality from 0 (no quality at all) to 100
14% 10% (extremely good quality). The stem-and-leaf display of the data is shown below.
Stem Leaves
3 24
4 03478999
5 0112345
6 12566
Juniors 7 01
30%
Sophomores 8
46% 9 2
12. Referring to Scenario 2-4, what percentage of the respondents rated overall television quality
with a rating of 80 or above?
a) 14% a) 0
b) 44% b) 4
c) 54% c) 96
d) 86% d) 100
ANSWER: ANSWER:
d b
TYPE: MC DIFFICULTY: Easy TYPE: MC DIFFICULTY: Easy
KEYWORDS: interpretation, pie chart KEYWORDS: stem-and-leaf display, interpretation
10. When polygons or histograms are constructed, which axis must show the true zero or "origin"? 13. Referring to Scenario 2-4, what percentage of the respondents rated overall television quality
a) The horizontal axis. with a rating of 50 or below?
b) The vertical axis. a) 11
c) Both the horizontal and vertical axes. b) 40
d) Neither the horizontal nor the vertical axis. c) 44
d) 56
ANSWER:
b ANSWER:
TYPE: MC DIFFICULTY: Easy c
KEYWORDS: polygon, histogram TYPE: MC DIFFICULTY: Moderate
KEYWORDS: stem-and-leaf display, interpretation
11. When constructing charts, the following is plotted at the class midpoints:
a) frequency histograms. 14. Referring to Scenario 2-4, what percentage of the respondents rated overall television quality
b) percentage polygons. with a rating from 50 through 75?
c) cumulative percentage polygon (ogives). a) 11
d) All of the above. b) 40
c) 44
ANSWER: d) 56
b
TYPE: MC DIFFICULTY: Easy ANSWER:
KEYWORDS: percentage polygon d
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: stem-and-leaf display, interpretation
, Organizing and Visualizing Variables 2-7 2-8 Organizing and Visualizing Variables
SCENARIO 2-5 18. Referring to Scenario 2-5, if 10 calls lasted 30 minutes or more, how many calls lasted less than 5
The following are the duration in minutes of a sample of long-distance phone calls made within the minutes?
continental United States reported by one long-distance carrier. a) 10
b) 185
Relative c) 295
Time (in Minutes) Frequency d) 500
0 but less than 5 0.37
5 but less than 10 0.22 ANSWER:
10 but less than 15 0.15 b
15 but less than 20 0.10 TYPE: MC DIFFICULTY: Moderate
20 but less than 25 0.07 KEYWORDS: relative frequency distribution, interpretation
25 but less than 30 0.07
30 or more 0.02 19. Referring to Scenario 2-5, what is the cumulative relative frequency for the percentage of calls
that lasted under 20 minutes?
15. Referring to Scenario 2-5, what is the width of each class? a) 0.10
a) 1 minute b) 0.59
b) 5 minutes c) 0.76
c) 2% d) 0.84
d) 100%
ANSWER:
ANSWER: d
b TYPE: MC DIFFICULTY: Easy
TYPE: MC DIFFICULTY: Easy KEYWORDS: cumulative relative frequency
KEYWORDS: class interval, relative frequency distribution
20. Referring to Scenario 2-5, what is the cumulative relative frequency for the percentage of calls
16. Referring to Scenario 2-5, if 1,000 calls were randomly sampled, how many calls lasted under 10 that lasted 10 minutes or more?
minutes? a) 0.16
a. 220 b) 0.24
b. 370 c) 0.41
c. 410 d) 0.90
d. 590
ANSWER:
ANSWER: c
d TYPE: MC DIFFICULTY: Moderate
TYPE: MC DIFFICULTY: Moderate KEYWORDS: cumulative relative frequency
KEYWORDS: relative frequency distribution, interpretation
21. Referring to Scenario 2-5, if 100 calls were randomly sampled, of them would have
17. Referring to Scenario 2-5, if 100 calls were randomly sampled, how many calls lasted 15 minutes lasted at least 15 minutes but less than 20 minutes
or longer? a) 6
a. 10 b) 8
b. 14 c) 10
c. 26 d) 16
d. 74
ANSWER:
ANSWER: c
c TYPE: MC DIFFICULTY: Easy
TYPE: MC DIFFICULTY: Moderate KEYWORDS: relative frequency distribution, interpretation
KEYWORDS: relative frequency distribution, interpretation