Example Sheet 1

1. Which statement below is false?

A. Data that can only be classified into categories is referred to as nominal or ordinal level of measurement
B. Zip codes are an example of qualitative data.
C. The number of robberies reported in a city is an example of discrete data.
D. A sample is a collection of all-possible individuals, objects or measurements of interest.
2. Which one in the following is the quantitative data:
A. The order that runners finish in a particular race
B. Political party affiliation
C. Zip codes of customers who make a purchase from a certain store
D. Social security numbers of individuals
E. None of these above
3. All of the following are examples of quantitative data except:
A. Concentration (in parts per million) of a pesticide
B. Weight of a certain species of fish found in a river
C. Length of a certain species of fish found in a river
D. The river/lake where a fish was captured
4. Managers study the number of days per month over the last year that employees in the payroll
department called in sick to determine the averages they can expect next year. Collecting the data and
determining the averages last year is an example of what type of statistics? Determining the averages they
can expect next year is an example of what type of statistics?
A. They are both examples of inferential statistics because averages are inferred in both instances.
B. Inferential statistics; descriptive statistics.
C. They are both examples of descriptive statistics because they deal with analyzing data.
D. Descriptive statistics; inferential statistics.
5. The grades that a random sampling of students in the psychology degree program received over the last
decade of "Abnormal Psychology" classes are an example of what statistical concept?
A. The grades are an example of a parameter.
B. The grades are an example of a sample.
C. The grades are an example of a population.
D. The grades are an example of a statistic.
6. What method is used to sample a population so that it is representative of the population?
A. All but the samples that appear to have the lowest and highest values are selected.
B. Samples are chosen at random from the population.
C. Every other element in a population is chosen.
D. Only the first half of a population is selected.
7. Look at the survey questions that Good Tunes sent to their customers. What kind of variables and scales
of measurement do the questions concerning overall service and quality of the items purchased represent?
A. Categorical variables measured on an ordinal scale.
B. Categorical variables measured on the nominal scale.
C. Categorical variables measured on the interval scale.
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D. Continuous variables measured on a ratio scale.

8. The number of leaves at present on the trees in a yard is an example of a continuous
variable.
True

False

9. The weight of each page of your textbook is an example of a numerical variable

measured on a ratio scale.
True

False

10. Considering the various types of tables and charts introduced in this chapter, which table, chart,
diagram or plot would you use to depict categorical data for two variables in a visual format?
A. A side-by-side bar chart.
B. A contingency table.
C. A pie chart.
D. A scatter plot/diagram.
11. How might an extreme value in the sample data set affect the value of the mean?
A. All values are treated equally when determining the mean so an extreme value cannot affect it.
B. One extreme value is still only one value, so it cannot affect the mean very much.
C. An extreme value cannot affect the mean if it is close to the mean.
D. Since all values are summed, any extreme value can influence the mean to a large extent.

12. When a distribution of values is skewed to the right, is the value of the median less
than or greater than the mean?
A. The median is greater than the mean.
B. The median is less than the mean.
C. The mean and median should be the same.
D. It is not possible to determine this without the values of the data set.

13. Complete the following table:

Grade on exam
Frequency
Relative frequency
---------------------------------------------------------------------------------------A: 90-100
16
0.08
B: 80-90
36
C: 65-79
90
D: 50-64
30
F: Below 50
28
---------------------------------------------------------------------------------------Total
1.00
---------------------------------------------------------------------------------------14. A measurement scale that rates product quality as either 1 = poor, 2 = average, and 3 = good is known
as
A. nominal.
B. ratio.
C. ordinal.
D. interval.
15. A _______________ lists the number of observations for every combination of values for two
categorical or ordinal values.
A. scatter plot
B. cross table
C. histogram
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D. stem-and-leaf display
16. The Journal of Consumer Marketing reported on a study of company response to letters of consumer
complaints. Marketing students in an Uni were asked to write letters of complaints to companies who
products legitimately caused them to be dissatisfied. Of the 750 students, 286 wrote letters of complaint.
The following table shows the type of reponse received from the companies and number of each type:
Type of response
number
-------------------------------------------------------Letter and product replacement
42
Letter and good coupon
36
Letter and Cents-off coupon
29
Letter and refund check
23
Letter, refund check and coupon
13
Letter only
76
No response
67
-------------------------------------------------------Total
286
-------------------------------------------------------a. Display the study results in a relative frequency bar graph
b. What percentage of consumers received a response to their letter of complaint?
----------------------------------------------------------------------------------------------------------

17. Referring to Table 2-1, suppose a frequency distribution for the number of payoff demand notices
received by the escrow company is constructed with a first class of 10 but less than 15. The frequency of
the 10 but less than 15 class would be
A. 0
B. 5
C. 10
D. 15
18. Referring to Table 2-1, suppose a relative frequency distribution for the number of payoff demand
notices received by the escrow company is constructed with a first class of 10, but less than 15. The
relative frequency of the 25 but less than 30 class would be ________.
A. 2
B. 2%
C. 6%
D. 8%
19. Referring to Table 2-1, suppose a cumulative relative frequency distribution for the number of payoff
demand notices received by the escrow company is constructed with a first class of 10 but less than 15.
The cumulative percentage frequency of the 15, but less than 20 class would be ________.
A. 28%
B. 48%
C. 68%
D. 88%
20a. Nominal levels of measurement indicate the rank ordering of items. TRUE

FALSE

20b. The relative frequency is the frequency in each class divided by the total number of observations
TRUE
FALSE
21. A time series diagram is a bar chart that displays the frequency of defect causes and is used to
separate the "vital few" from the "trivial many."
TRUE
FALSE
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22. Calculate the and median value of the following eight numbers: 14, 34, 50, 10, 24, 11, 32, 20.
A. 20
B. 22
C. 24.
D. 24.4
23. If the sample correlation coefficient rxy is equal to -1.00, then
A. all the data points must fall exactly on a straight line when the slope equals 1.00.
B. all the data points must fall exactly on a straight line with a negative slope.
C. all the data points must fall exactly on a straight line with a positive slope.
D. all the data points must fall exactly on a horizontal straight line with a zero slope.
24. Calculate the interquartile range of the following 11 numbers: 14, 34, 50, 10, 24, 11, 32, 20, 9, 51, 7.
A. 10
B. 34
C. 22
D. 24
25. When extreme values are present in a set of data, which of the following descriptive summary
measures are most appropriate
A. CV and range
B. Mean and standard deviation
C. Median and interquartile range
D. Mode and variance
26. Calculate the correlation coefficient of the following sample of four (x, y) pairs: (1, 4), (2, 9), (4, 6),
and (5, 9).
A. 0.751
B. 0.518
C. 0.225
D. 0.842
27. The coefficient of variation measures variability in a data set relative to the size of the median.
TRUE
FALSE
28. The interquartile range measures the spread of the middle 50% of data.
TRUE
FALSE
29. The average score for a class of 30 students was 75. The twenty male students in the class averaged
70. Find the average score for the female students.
A. 95
B. 80
C. Not enough information
D. 85
E. 90
30. Retailers are always interested in determining why a customer selected their store to make a
purchase. A sporting goods retailer conducted a customer survey to determine why its customers
shopped at the store. The results are shown here:

What proportion of the customers responded that the merchandise was the reason they shopped at the
store?
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A. 20/70

B. 30/60

C. 30

D. 30/70

31. The coefficient of variation measures variability in a data set relative to the size of the mean
TRUE
FALSE
32. The slope of the line and the correlation coefficient both have the same sign (positive or negative).
TRUE
FALSE
33
A single die is tossed and the number of spots appearing on the top face of the die is noted.
Identify the false statement:
A. There are six sample points associated with the sample space
B. The probability that the number of spots appearing is greater than three is 2/3.
C. The sample space is S = {1, 2, 3, 4, 5, 6}
D. The probability of an even number appearing is ?
E. None of the above
34. The probability of A or B is .8. The probability of B is .3 What is the probability of A if events A and
B are mutually exclusive?
A .11
B -.5
C0
C .5
None of the above
35.
Which of the following best expresses the addition rule of probabilities?
A. P(A B) = P(A) + P(B)
B. P(A B) = P(A) + P(B) + P(A B)
C. P(A B) = P(A) + P(B) - P(A B)
D. None of the above
36.
A candy bowl contains 8 red M&Ms, 5 blue and 3 yellow. If 2 M&Ms are selected randomly, what
is the probability that one will be blue and one will be yellow?
A. 5 percent
B. 20 percent
C. 33.3 percent
D. 12.5 percent
37.
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The
probability that the interest rates on housing loans will go up is estimated to be 0.7. The probability that
house sales and interest rates will go up during the next 6 months is estimated to be 0.20.
a. The probability that house sales or interest rates increase during the next 6 months is
A 0.75
B 0.85
C 0,705
D 0.9
b. The probability that house sales will go up given that the interest rates will increase during the next 6
months is
A 0.11
B 0.195
C 0.285
D 0.4
c. The probability of an increase in house sales and not an increase in interest rates is
A 0.2
B 0.05
C 0.25
D 0.5
38.

In the General Addition Rule, which finds the probability of either event A or event B occurring,
P(A) and P(B) are summed, but why is P(A and B) subtracted?

A. This is just part of the theory.

B. P(A and B) has already been counted in P(A) and P(B).

C. You do not have to subtract P(A and B) if A and B are statistically independent.
D. This rule determines the probability of event A OR B occurring, not A AND B, so this factor is subtracted.
39.

Consider the following chart of student enrollment at a particular college. A student is selected at
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random from this college.

Nursing
students

Engineering Students

Undergraduates

130

70

Graduates

30

20

Let E represent the event an engineering student is selected, N = nursing student, U= undergraduate and G
= graduate student. A single student is selected at random from this set. Identify the statement below that is
false:
A. P (E|U)=7/9
B. P (E|G)=0.4
C. P (N) = 16/25= 0.64
D. P (G|N) = 3/16
40. Two cards are drawn without replacement (no return) from an ordinary deck of 52 cards (no jokers).
Find the probability that both cards are black:
A. 650/2704
B. 1/4
C. 25/102
D. None of the above
41. A Ph.D. graduate has applied for a job with two universities: X and Y. The graduate feels that he has a
60% chance of receiving an offer from university X and a 50% chance of receiving an offer from university
Y. If he receives an offer from university Y, he believes that he has an 80% chance of receiving an offer
from university X. What is the probability that both universities will make him an offer?
A 0.48
B 0.40
C 0.30
D 0.04
42. A publisher when deciding whether to offer contracts on two books, in economics and marketing
respectively, estimates that the economics book has a probability of 0.7 of earning a profit while the
marketing book has a probability of 0.5 of earning a profit. Further, she considers that the probability of
both books failing to make a profit is 0.2.
a. Find the probability that at least one book will make a profit.
b. Find the probability that at least one book will fail to make a profit.
c. Find the probability that both books will make a profit