Statistics for Business and Economics Exam Practice Tests

Course Introduction

Statistics for Business and Economics introduces students to the fundamental concepts and techniques of statistical analysis with a focus on real-world business and economic applications. The course covers topics such as descriptive statistics, probability distributions, sampling, estimation, hypothesis testing, regression analysis, and forecasting. Emphasizing practical problem-solving, students learn how to collect, interpret, and utilize data to make informed decisions in various business and economic contexts. By applying statistical tools and software, students gain the analytical skills needed to address challenges in management, finance, marketing, and economic policy-making.

Recommended Textbook

Basic Business Statistics 5th Edition by Mark

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3026 Verified Questions

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Page 2

Chapter 1: Defining and Collecting Data

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Sample Questions

Q1) The answer to the question 'How do you rate the quality of your business statistics course?' is an example of an ordinal scaled variable.

A)True

B)False

Answer: True

Q2) One of the 'big four' Australian banks is conducting research in order to understand the banking needs of Australian residents.Using data collected by the Australian Bureau of Statistics is an example of a _________source.

Answer: secondary

Q3) The amount of time a student spent studying for an exam will be measured on a ratio scale.

A)True

B)False

Answer: True

Q4) Marital status is an example of an ordinal scaled variable.

A)True

B)False

Answer: False

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Page 3

Chapter 2: Organising and Visualising Data

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Sample Questions

Q1) You have collected data on the monthly seasonally adjusted unemployment rate for Australia from 2010 to 2018.Which of the following is the best for presenting the data?

A) A contingency table.

B) A time-series plot.

C) A stem-and-leaf display.

D) A side-by-side bar chart.

Answer: D

Q2) In constructing a polygon,each class grouping is represented by its _________ and then these are consecutively connected to one another.

Answer: mid-point

Q3) When comparing two or more large batches of numerical data,the distributions being developed should use the same _________.

Answer: class boundaries

Q4) Determining the class boundaries of a frequency distribution is highly subjective.

A)True

B)False

Answer: True

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Chapter 3: Numerical Descriptive Measures

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Sample Questions

Q1) If the mean is less than the median,the distribution is likely to be positive or right-skewed.

A)True

B)False

Answer: False

Q2) Referring to Instruction 3-2,the variance of the carbohydrate amounts is _____________ (grams squareD..

Answer: 26.02

Q3) Referring to Instruction 3-6,compute the geometric mean rate of return.

Answer: 14.68%

Q4) As a general rule,an observation is considered an extreme value if its Z score is less than 3.

A)True

B)False

Answer: False

Q5) The coefficient of variation is a measure of central tendency in the data.

A)True

B)False

Answer: False

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Chapter 4: Basic Probability

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Sample Questions

Q1) Referring to Instruction 4.1,what proportion of accidents involved alcohol and a single vehicle?

A) 50/400 or 12.5%

B) 195/400 or 48.75%

C) 245/400 or 61.25%

D) 25/400 or 6.25%

Q2) Referring to Instruction 4.3,the probability that a randomly selected individual is a child and prefers chicken is _____________ .

Q3) Referring to Instruction 4.2,what is the probability that a randomly selected student did well on the exam and also went to a pub on the weekend before the exam?

A) 30/200 or 15%

B) (30 + 70) / 200 or 50%

C) (80 + 30 + 70) / 200 or 90%

D) (80 + 30) / 200 or 55%

Q4) Referring to Instruction 4.4,suppose a randomly selected patron prefers beer.Then the probability the patron is a male is _____________ .

Q5) Referring to Instruction 4.4,the probability a randomly selected patron is a female is

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Chapter 5: Some Important Discrete Probability

Distributions

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Sample Questions

Q1) Referring to Instruction 5.3,what is the expected value gain for the house in neighbourhood B?

Q2) he probability that she gets audited once is ______.

Q3) A covariance of zero shows that two variables X and Y are ______.

Q4) Numerical variables are classified as either discrete or continuous.

A)True

B)False

Q5) The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be at least 1 power outage in a year is ______.

Q6) Referring to Instruction 5.4,which distribution would you use to determine the probability that all the smoke alarms will function properly in case of a fire?

Q7) Referring to Instruction 5.1,the mean or expected value for the number of retransmissions is ______.

Q8) The variance of the number of times she will be audited is ______.

Q10) Referring to Instruction 5.5,the probability that all three businesses succeed Page 7

Q9) The standard deviation of a discrete random variable is the square root of the______

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Page 8

Chapter 6: The Normal Distribution and Other Continuous

Distributions

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Sample Questions

Q1) Referring to Instruction 6.2,for a given month,what is the probability that John's income as a waiter is between $700 and $1,600?

Q2) The probability that Z is more than 0.77 is _________.

Q3) A normal probability plot may be used to assess the assumption of normality for a particular batch of data.

A)True

B)False

Q4) Referring to Instruction 6.8 and assuming that the number of computers that requires repair on a given day follows a binomial distribution,compute the probability that there will be exactly 10 computers that require repair on a given day using a normal approximation.

Q5) The owner of a fish market determined that the average weight for a rainbow trout is 3.2 kilograms with a standard deviation of 0.8 kilogram.Assuming the weights of rainbow trout are normally distributed,above what weight (in kilograms)do 89.80% of the weights occur?

Q6) Referring to Instruction 6.7,what is the probability that the next hit at the website will occur within 10 seconds after just being hit by a visitor?

Q7) Referring to Instruction 6.5,the second standard normal quantile is _______

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Chapter 7: Sampling Distributions

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Sample Questions

Q1) A sample of size 25 provides a sample variance of 400.The standard error,in this case equal to 4,is best described as the estimate of the standard deviation of means calculated from samples of size 25.

A)True

B)False

Q2) What is the probability that the sample mean will be less than 100 grams?

Q3) Suppose a random sample of 64 purchasers of this table saw is taken.The mean of the sampling distribution of the sample mean is _____________minutes.

Q4) The Central Limit Theorem ensures that the sampling distribution of the sample mean approaches normal as the sample size increases.

A)True

B)False

Q5) Referring to Instruction 7.2,what is the probability that the sample mean selling price was between $113,000 and $117,000?

Q6) So,95% of the sample means based on samples of size 36 will be between______ and _________

Q7) Referring to Instruction 7.5,the population mean of all the sample proportions is

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Chapter 8: Confidence Interval Estimation

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Sample Questions

Q1) Referring to Instruction 8-19,a 90% confidence interval calculated from the same data would be narrower than a 99% confidence interval.

A)True

B)False

Q2) Referring to Instruction 8-18,what is the needed sample size to obtain a 90% confidence interval estimate of the percentage of the targeted young adults who will purchase the new game by allowing the same level of margin of error?

Q3) Referring to Instruction 8-10,the critical value for a 99% confidence interval for this sample is ____________.

Q4) Referring to Instruction 8-5,it is possible that the 99% confidence interval calculated from the data will not contain the mean voltage for the entire population.

A)True

B)False

Q5) The difference between the sample size and the population size is called the sampling error.

A)True

B)False

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Chapter 9: Fundamentals of Hypothesis Testing:

One-Sample Tests

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Sample Questions

Q1) Using a set of data more than once for inference or selecting a model is known as________.

Q2) Referring to Instruction 9-3,what is the probability of making a Type II error if the mean power consumption of all such microwave ovens is in fact 248 W using a 0.05 level of significance?

Q3) Referring to Instruction 9-4,what is the probability of making a Type II error if the mean effective time of the anaesthetic is 7.0 using a 0.05 level of significance?

Q4) Referring to Instruction 9-7,the biologist can conclude that there is sufficient evidence to show that the mean number of parasites per butterfly is greater than 20 with no more than a 5% probability of incorrectly rejecting the true null hypothesis.

A)True

B)False

Q5) Referring to Instruction 9-6,if the test is performed with a level of significance of 0.05,the null hypothesis would be rejected.

A)True

B)False

Q6) If a researcher accepts a false null hypothesis,she has made a ________error.

Page 12

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Chapter 10: Hypothesis Testing: Two-Sample Tests

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175 Flashcards

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Sample Questions

Q1) Referring to Instruction 10-13,the hypotheses the dean should use are

A) H0: 1 - 2 0 versus H1: 1 - 2 > 0.

B) H0: 1 - 2 = 0 versus H1: 1 - 2 0.

C) H0: 1 - 2 0 versus H1: 1 - 2 = 0.

D) H0: 1 - 2 0 versus H1: 1 - 2 < 0.

Q2) Referring to Instruction 10-5,the decision rule is to reject the null hypothesis if__________.

Q3) Referring to Instruction 10-7,there are__________degrees of freedom for this test.

Q4) Referring to Instruction 10-4,the value of the standard error of the difference scores is A) 60.828.

B) 14.696.

C) 22.991. D) 65.027.

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Chapter 11: Analysis of Variance

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148 Flashcards

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Sample Questions

Q1) When would you use the Tukey-Kramer procedure?

A) To test for normality.

B) To test for differences in pairs of means.

C) To test independence of errors.

D) To test for homogeneity of variance.

Q2) Referring to Instruction 11-10,what degrees of freedom should be used to determine the critical value of the F ratio against which to test for differences between the mean charges of foreign and Australian medical school graduates?

A) numerator df = 3, denominator df = 152

B) numerator df = 1, denominator df = 152

C) numerator df = 3, denominator df = 159

D) numerator df = 1, denominator df = 159

Q3) Referring to Instruction 11-3,the among group variation or SSA is ________.

Q4) Referring to Instruction 11-12,the mean square for the factor shape is________.

Q5) Referring to Instruction 11-4,the within-group variation or SSW is ________.

Q6) Referring to Instruction 11-4,the total variation or SST is________.

Q7) Referring to Instruction 11-7,using an overall level of significance of 0.01,what is the critical range for the Tukey multiple comparison procedure?

Q8) Referring to Instruction 11-6,the value of the test statistic is ________.

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Chapter 12: Simple Linear Regression

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Sample Questions

Q1) Referring to Instruction 12.2,to test that the regression coefficient,?1 is not equal to 0,what would be the critical values? Use ? = 0.05.

A) ± 2.7765

B) ± 3.1634

C) ± 2.5706

D) ± 3.4954

Q2) Referring to Instruction 12.2,what is the percentage of the total variation in chocolate bar sales explained by the regression model?

A) 48.19%

B) 100%

C) 88.54%

D) 78.39%

Q3) Referring to Instruction 12.28,the managers of the brokerage firm wanted to test the hypothesis that the true slope was equal to 0.The p-value of the test is ____________.

Q4) Referring to Instruction 12.23,the partner wants to test for autocorrelation using the Durbin-Watson statistic.Using a level of significance of 0.05,the critical values of the test are dL = ____________,and dU =____________.

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Chapter 13: Introduction to Multiple Regression

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Sample Questions

Q1) Referring to Instruction 13.10,estimate the mean percentage of students passing the proficiency test for all the schools that have a daily mean of 95% of students attending class,a mean teacher salary of 40,000 dollars and an instructional spending per pupil of 2,000 dollars.

Q2) Referring to Instruction 13.35,which of the following is the correct alternative hypothesis to test whether daily mean of the percentage of students attending class has any effect on percentage of students passing the proficiency test,taking into account the effect of all the other independent variables?

A) H1: 0 0

B) H1: 2 0

C) H1: 3 0

D) H1: 1 0

Q3) In a multiple regression model,the adjusted r2

A) can sometimes be negative.

B) can sometimes be greater than +1.

C) cannot be negative.

D) has to fall between 0 and +1.

Q4) Referring to Instruction 13.12,the net regression coefficient of X2 is___________.

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Chapter 14: Time-Series Forecasting and Index Numbers

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Sample Questions

Q1) The consumer price index is a Paasche price index.

A)True

B)False

Q2) Referring to Instruction 14-9,the fitted trend value (in millions of dollars)for 1995 is _______.

Q3) One reason to use quantitative forecasting methods is if historical data are not available.

A)True

B)False

Q4) Quantitative forecasting methods are highly subjective and judgmental.

A)True

B)False

Q5) Referring to Instruction 14-2,if a three-term moving average is used to smooth this series,how many values would it have?

A) Five

B) Three

C) Two

D) Four

Q6) Referring to Instruction 14-11,the fitted value for 1990 is _______.

Q7) Referring to Instruction 14-10,the forecast for the demand in 2009 is_______

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Chapter 15: Chi-Square Tests

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Sample Questions

Q1) Referring to Instruction 15-7,the null hypothesis cannot be rejected.

A)True

B)False

Q2) Referring to Instruction 15-6,the decision made suggests that the four procedures all have different proportions of clear operations.

A)True

B)False

Q3) Referring to Instruction 15-11,which test would you use to properly analyse the data in this experiment to determine whether there is a relationship between defect rate and years of experience?

A) (?)2 test for differences among more than two proportions

B) (?)2 test for independence

C) (?)2 test for difference between two proportions

D) None of the above

Q4) Referring to Instruction 15-12,the same decision would be made with this test if the level of significance had been 0.05.

A)True

B)False

Q5) Referring to Instruction 15-7,what is the critical value?

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Chapter 16: Multiple Regression Model Building

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Sample Questions

Q1) One of the consequences of collinearity in multiple regression is inflated standard errors in some or all of the estimated slope coefficients.

A)True

B)False

Q2) Referring to Instruction 16-4,and noting that this model includes both a linear and a quadratic term,what is the correct interpretation of the coefficient of multiple determination?

A) 98.8% of the total variation in demand can be explained by the linear relationship between demand and price.

B) 98.8% of the total variation in demand can be explained by the addition of the square term in price.

C) 98.8% of the total variation in demand can be explained by just the square term in price.

D) 98.8% of the total variation in demand can be explained by the quadratic relationship between demand and price.

Q3) Calculating Cook's Distance Statistic requires the use of matrix algebra.

A)True

B)False

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Chapter 17: Decision Making

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Sample Questions

Q1) Given 0.2,0.4,and 0.4 are the probabilities for the sale of 100,200,or 400 dozen roses,respectively,then the optimal expected monetary value (EMV)for buying roses is

A) $700

B) $1,700

C) $900

D) $1,900

Q2) The risk seeker's curve represents the utility of one who enjoys taking risks.Therefore,the slope of the utility curve becomes _______ for large dollar amounts.

A) larger

B) stable

C) smaller

D) uncertain

Q3) The payoff for buying and selling 400 dozen roses at the full price is ________.

A) $12,000

B) $6,000

C) $4,000

D) It cannot be determined.

Q4) Referring to Instruction 17-8,what is the coefficient of variation for Action A?

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Chapter 18: Statistical Applications in Quality Management

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Sample Questions

Q1) Referring to Instruction 18-7,suppose the supervisor constructs an R chart to see if the process is in control.What is the centre line of the chart?

A) 20.26

B) 20.00

C) 21.00

D) 24.26

Q2) Referring to Instruction 18-15,construct an R chart for the time required to register.

Q3) The purpose of a control chart is to eliminate common cause variation.

A)True

B)False

Q4) Referring to Instruction 18-7,suppose the supervisor constructs an R chart to see if the variability in collection times is in control.What are the lower and upper control limits for this R chart?

A) -2.28, 42.28

B) 0, 43.13

C) -2.33, 43.13

D) 0, 42.28

Q5) Referring to Instruction 18-4,the process seems to be _______.

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Chapter 19: Further Non-Parametric Tests

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Sample Questions

Q1) Referring to Instruction 19-6,what are the degrees of freedom of the Friedman rank test for the difference in the medians at a level of significance of 0.01?

Q2) A non-parametric test for testing the difference between two medians from independent samples is known as the ____.

A) Kruskal-Wallis test

B) Wilcoxon rank sum test

C) Friedman rank test

D) Wilcoxon signed ranks test

Q3) Referring to Instruction 19-5,the null hypothesis for the Friedman rank test for the difference in the means should be rejected at a 0.01 level of significance.

A)True

B)False

Q4) Referring to Instruction 19-5,the decision made at a 0.01 level of significance on the Friedman rank test for the difference in medians implies that all three medians are significantly different.

A)True

B)False

Q5) Referring to Instruction 19-3,what is the value of the test statistic?

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