Managerial Statistics Exam Practice Tests

Course Introduction

Managerial Statistics is designed to equip students with the essential statistical tools and techniques used in managerial decision-making. The course emphasizes the practical application of descriptive and inferential statistical methods in business contexts, including data collection, probability distributions, hypothesis testing, regression analysis, and forecasting. Through a combination of theoretical concepts and real-world case studies, students will learn how to analyze data, interpret statistical results, and apply findings to solve managerial problems, thereby enhancing their ability to make informed and effective business decisions.

Recommended Textbook

Business Statistics for Contemporary Decision Making 2nd Canadian Edition by Ken Black

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19 Chapters

1456 Verified Questions

1456 Flashcards

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Page 2

Chapter 1: Introduction to Statistics

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79 Verified Questions

79 Flashcards

Source URL: https://quizplus.com/quiz/72012

Sample Questions

Q1) All numerical data must be analyzed statistically in the same way because all of them are represented by numbers.

A)True

B)False

Answer: False

Q2) A descriptive measure of the sample is called a statistic.

A)True

B)False

Answer: True

Q3) A market research analyst has asked consumers to rate the appearance of a new package on a scale of 1 to 5.A 1 means that the appearance is awful while a 5 means that it is excellent.The level of this data is usually considered ___.

A)interval level data

B)ordinal level data

C)nominal level data

D)ratio level data

E)relative level data

Answer: B

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Chapter 2: Charts and Graphs

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75 Verified Questions

75 Flashcards

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Sample Questions

Q1) A summary of data in which raw data are grouped into different intervals and the number of items in each group is listed is called a frequency distribution.

A)True

B)False

Answer: True

Q2) Describe and construct different types of qualitative data graphs,including pie charts,bar charts,and Pareto charts.Explain when these graphs should be used. Answer: A pie chart is a circular depiction of data.The amount of each category is represented as a slice of the pie proportionate to the total.The researcher is cautioned in using pie charts because it is sometimes difficult to differentiate the relative sizes of the slices.The bar chart or bar graph uses bars to represent the frequencies of various qualitative categories.The bar chart can be displayed horizontally or vertically.A Pareto chart is a vertical bar chart that is used in total quality management to graphically display the causes of problems.The Pareto chart presents problem causes in descending order to assist the decision maker in prioritizing problem causes.

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Chapter 3: Descriptive Statistics

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63 Verified Questions

63 Flashcards

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Sample Questions

Q1) Skewness and kurtosis of a data set are measures of the shape of the distribution.

A)True

B)False

Answer: True

Q2) If the mean of a distribution is greater than the median,then the distribution is positively skewed.

A)True

B)False

Answer: True

Q3) Skewness indicates that a data distribution is symmetrical or asymmetrical.

A)True

B)False

Answer: True

Q4) An appropriate measure of central tendency for ordinal data is the mode.

A)True

B)False

Answer: False

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Chapter 4: Probability

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72 Verified Questions

72 Flashcards

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Sample Questions

Q1) Calculate conditional probabilities using Bayes' rule.

Q2) Let A be the event that a student is enrolled in an accounting course,and let S be the event that a student is enrolled in a statistics course.It is known that 30% of all students are enrolled in an accounting course and 40% of all students are enrolled in statistics.Included in these numbers are 15% who are enrolled in both statistics and accounting.A student is randomly selected,and it is found that the student is enrolled in accounting.What is the probability that this student is also enrolled in statistics?

A)0.15

B)0.75

C)0.375

D)0.50

E)0.80

Q3) Given P (A)= 0.40,P (B)= 0.50,P (A $\cap$ B)= 0.15.Find P (B|A).

A)0.20

B)0.80

C)0.30

D)0.375

E)0.15

Q4) Compare marginal,union,joint,and conditional probabilities by defining each one.

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Chapter 5: Discrete Distributions

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80 Verified Questions

80 Flashcards

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Sample Questions

Q1) Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business,but after scanning the list she doubts the authenticity of the list.She randomly selects five names from the list for validation.If 40% of the names on the list are non-authentic,and x is the number of non-authentic names in her sample,P(x>0)is ___.

A)0.2172

B)0.9533

C)0.1846

D)0.9222

E)1.0000

Q2) The number of cars arriving at a toll booth in five-minute intervals is Poisson distributed with a mean of 3 cars arriving in five-minute time intervals.The probability of 5 cars arriving over a five-minute interval is ___.

A)0.0940

B)0.0417

C)0.1500

D)0.1008

E)0.2890

Q3) Determine the mean,variance,and standard deviation of a discrete distribution.

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Chapter 6: Continuous Distributions

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78 Verified Questions

78 Flashcards

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Sample Questions

Q1) Completion time (from start to finish)of a building remodelling project is normally distributed with a mean of 200 work-days and a standard deviation of 10 work-days.The probability that the project will be completed within 185 work-days is ___.

A)0.0668

B)0.4332

C)0.5000

D)0.9332

E)0.9950

Q2) Solve for probabilities in a continuous uniform distribution.

Q3) Let z be a normal random variable with mean 0 and standard deviation 1.The 90th percentile of z is ___.

A)1.645

B)-1.254

C)1.960

D)1.280

E)1.650

Q4) Solve for probabilities in an exponential distribution and contrast the exponential distribution to the discrete Poisson distribution.

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Chapter 7: Sampling and Sampling Distributions

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76 Verified Questions

76 Flashcards

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Sample Questions

Q1) Suppose a population has a mean of 870 and a variance of 1,600.If a random sample is size 64 is drawn from the population,the probability that the sample mean is between 860 and 875 is ___.

A)0.9544

B)0.6826

C)0.8785

D)0.5899

E)0.8185

Q2) Abel Alonzo,Director of Human Resources,is exploring employee absenteeism at the Harrison Haulers Plant.Abel knows that absenteeism varies significantly between departments.For example,workers in the wood shop are absent more than those in the tuning department and the size of the departments ranges from 40 to 120 workers.He orders a random sample of 10% of the workers from each of the six departments.Abel' sample is a ___.

A)proportionate systematic sample

B)proportionate stratified sample

C)disproportionate systematic sample

D)disproportionate stratified sample

E)proportionate cluster sample

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Chapter 8: Statistical Inference: Estimation for Single Populations

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80 Verified Questions

80 Flashcards

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Sample Questions

Q1) The normal distribution is used to test about a population mean for large samples if the population standard deviation is known."Large" is usually defined as ___.

A)at least 10

B)at least 5% of the population size

C)at least 30

D)at least 12

E)at least 100

Q2) Estimate a population proportion using the z statistic.

Q3) Use of the chi-square statistic to estimate the population variance is extremely robust to the assumption that the population is normally distributed.

A)True

B)False

Q4) A t distribution is similar to a normal distribution,but flatter in the middle.

A)True

B)False

Q5) Use the chi-square distribution to estimate the population variance given the sample variance.

Page 10

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Chapter 9: Statistical Inference: Hypothesis Testing for

Single Populations

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79 Verified Questions

79 Flashcards

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Sample Questions

Q1) Consider the following null and alternative hypotheses. Ho: µ = 67

Ha: µ $\neq$ 67

These hypotheses ___.

A)indicate a one-tailed test with a rejection area in the right tail

B)indicate a one-tailed test with a rejection area in the left tail

C)indicate a two-tailed test

D)are established incorrectly

E)are not mutually exclusive

Q2) A researcher is testing a hypothesis of a single mean.The critical z value for $\alpha$ = .05 and a two-tailed test is +1.96.The observed z value from sample data is 2.85.The decision made by the researcher based on this information is to ___ the null hypothesis.

A)reject

B)not reject

C)redefine

D)change the alternate hypothesis into E)restate the null hypothesis

Q3) The probability of committing a Type I error is called the power of the test.

A)True

B)False

Page 11

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Chapter 10: Statistical Inferences About Two Populations

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70 Verified Questions

70 Flashcards

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Sample Questions

Q1) The difference in two sample means is normally distributed for sample sizes 30,only if the populations are normally distributed.

A)True

B)False

Q2) A researcher wishes to determine the difference in two population means.To do this,she randomly samples 9 items from each population and computes a 90% confidence interval.The sample from the first population produces a mean of 780 with a standard deviation of 240.The sample from the second population produces a mean of 890 with a standard deviation of 280.Assume that the values are normally distributed in each population.The t value used for this is ___.

A)1.860

B)1.734

C)1.746

D)1.337

E)2.342

Q3) Sets of matched samples are also referred to as independent samples. A)True

B)False

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Chapter 11: Analysis of Variance and Design of Experiments

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80 Verified Questions

80 Flashcards

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Sample Questions

Q1) The statistical methods of analysis of variance assume that the populations are normally distributed.

A)True

B)False

Q2) BigShots,Inc.is a specialty e-tailer that operates 87 catalogue websites on the Internet.Kevin Conn,Sales Director,feels that the style (colour scheme,graphics,fonts,etc. )of a website may affect its sales.He chooses three levels of design style (neon,old world and sophisticated)and randomly assigns six catalogue websites to each design style.Kevin's null hypothesis is ___.

A)$\mu$ 1 $\ge$ $\mu$ 2 $\ge$ $\mu$

B)$\mu$ 1 $\neq$$\mu$ 2 $\neq$ $\mu$ 3

C)$\mu$ 1 =$\mu$ 2 = $\mu$ 3/ D)$\mu$ 1 $\le$ $\mu$ 2 $\le$ $\mu$ 3

E)$\mu$ 1 $\le$$\mu$ 2 $\ge$ $\mu$ 3

Q3) In analysis of variance tests a t distribution forms the basis for making the decisions. A)True B)False

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Chapter 12: Simple Regression Analysis and Correlation

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84 Flashcards

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Sample Questions

Q1) Data points that lie apart from the rest of the points are called deviants.

A)True

B)False

Q2) One of the assumptions made in simple regression is that ___.

A)the error terms are normally distributed

B)the error terms have unequal variances

C)the model is nonlinear

D)the error terms are dependent

E)the error terms are all equal

Q3) One of the major uses of residual analysis is to test some of the assumptions underlying regression.

A)True

B)False

Q4) The range of admissible values for the coefficient determination is 1 to +1.

A)True

B)False

Q5) Calculate the residuals of a regression line and from those determine the fit of the model,locate outliers,and test the assumptions of the regression model.

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Chapter 13: Multiple Regression Analysis

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80 Verified Questions

80 Flashcards

Source URL: https://quizplus.com/quiz/72024

Sample Questions

Q1) The model y = $\beta$ 0 + $\beta$ 1x1 + $\beta$ 2x2 + $\varepsilon$ is a second-order regression model.

A)True

B)False

Q2) The standard error of the estimate of a multiple regression model is essentially the standard deviation of the residuals for the regression model.

A)True

B)False

Q3) A real estate appraiser is developing a regression model to predict the market value of single family residential houses as a function of heated area,number of bedrooms,number of bathrooms,age of the house,and central heating (yes,no).The response variable in this model is ___.

A)heated area

B)number of bedrooms

C)market value

D)central heating

E)residential houses

Q4) Understand the limitations and pitfalls of multiple regression analysis.

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Chapter 14: Building Multiple Regression Models

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80 Verified Questions

80 Flashcards

Source URL: https://quizplus.com/quiz/72025

Sample Questions

Q1) Use all possible regressions,stepwise regression,forward selection,and backward elimination search procedures to develop regression models that account for the most variation in the dependent variable and are parsimonious.

Q2) Stepwise regression is one of the ways to prevent the problem of multicollinearity.

A)True

B)False

Q3) In multiple regression analysis,qualitative variables are sometimes referred to as

A)dummy variables

B)quantitative variables

C)dependent variables

D)performance variables

E)cardinal variables

Q4) Examine the role of indicator,or dummy,variables as predictors or independent variables in multiple regression analysis.

Q5) Explain when to use logistic regression,and interpret its results.

Q6) Recognize when multicollinearity is present,understanding general techniques for preventing and controlling it.

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Chapter 15: Time-Series Forecasting and Index Numbers

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77 Verified Questions

77 Flashcards

Source URL: https://quizplus.com/quiz/72026

Sample Questions

Q1) When the error terms of a regression forecasting model are correlated the problem of multicollinearity occurs.

A)True

B)False

Q2) Mean error (ME)and mean absolute deviation (MAD)will have the same numerical value if all errors are positive.

A)True

B)False

Q3) If autocorrelation occurs in regression analysis,then the confidence intervals and tests using the t and F distributions are no longer strictly applicable.

A)True

B)False

Q4) Naïve forecasting models have no useful applications because they do not take into account data trend,cyclical effects or seasonality.

A)True

B)False

Q5) Account for seasonal effects of time-series data by using decomposition and Winters' three-parameter exponential smoothing method.

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Chapter 16: Analysis of Categorical Data

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76 Verified Questions

76 Flashcards

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Sample Questions

Q1) A contingency table has five rows and six columns.When applying a chi-square test of independence to this table,the number of degrees of freedom is ___.

A)9

B)20

C)30

D)11

E)12

Q2) The null hypothesis for a chi-square test of independence is that the two variables are not related.

A)True

B)False

Q3) A two-way table used for a test of independence is sometimes called a contingency table.

A)True

B)False

Q4) In a chi-square goodness-of-fit test,theoretical frequencies are also called expected frequencies.

A)True B)False

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Chapter 17: Nonparametric Statistics

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81 Verified Questions

81 Flashcards

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Sample Questions

Q1) The nonparametric alternative to the one-way analysis of variance is the Kruskal-Wallis test.

A)True

B)False

Q2) Use both the small-sample and large-sample cases of the Wilcoxon matched-pairs signed rank test to compare the differences in two related samples.

Q3) In the one-sample runs test for randomness of the observations in a large sample the sampling distribution of R,the number of runs,is approximately binomial.

A)True

B)False

Q4) The nonparametric alternative to analysis of variance for a randomized block design is the ___.

A)chi-square test

B)Kruskal-Wallis test

C)Mann-Whitney U test

D)Wilcoxon test

E)Friedman test

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Chapter 18: Statistical Quality Control

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68 Verified Questions

68 Flashcards

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Sample Questions

Q1) According to Garvin,transcendent quality implies that a product ___.

A)conforms to design and engineering specifications

B)has an innate excellence

C)has no measurable attributes

D)is fit for the consumer's intended use

E)has measurable attributes

Q2) Jack Joyner,Director of Quality Control at Covington Castings (CC),is designing a c chart to monitor the number of nonconformances per aluminum casting produced at CC.The total number of nonconformances for 26 castings is 91.The lower control limit for Jack's c chart is ___.

A)1.37

B)-2.11

C)3.50

D)-1.00

E)0.00

Q3) Inspecting the attributes of a finished product to determine whether the product is acceptable,is in need of rework,or is to be rejected is called in-process quality control.

A)True

B)False

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Page 20

Chapter 19: Decision Analysis

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78 Verified Questions

78 Flashcards

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Sample Questions

Q1) Revise probabilities in light of sample information by using Bayesian analysis and calculating the expected value of sample information.

Q2) Make decisions under certainty by constructing a decision table.

Q3) The expected monetary payoff of perfect information is the value of perfect information.

A)True

B)False

Q4) The expected monetary value without information is $2,500,and the expected monetary payoff with perfect information is $5,000.The expected value of perfect information is ___.

A)$7,500

B)$2,500

C)$1,500

D)$2,000

E)$1,250

Q5) In a decision-making under uncertainty scenario,the best decision alternative based on the strategy of minmax regret will always have zero regret. A)True B)False

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