Statistics for Management Pre-Test Questions
Course Introduction
Statistics for Management introduces fundamental statistical concepts and techniques essential for managerial decision-making. The course equips students with skills to collect, analyze, interpret, and present data relevant to business contexts. Topics include descriptive statistics, probability distributions, hypothesis testing, regression analysis, and inferential statistics, all tailored to address real-world management problems. Through case studies and practical exercises, students learn to apply statistical reasoning to optimize operations, improve quality, forecast trends, and support strategic planning in various organizational settings.
Recommended Textbook
Essentials of Business Statistics 1st Canadian Edition by Ken Black
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1055 Verified Questions
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Page 2
Chapter 1: Introduction to Statistics
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Sample Questions
Q1) A list of final grades in an introductory class in business is an example of statistics.
A)True
B)False
Answer: False
Q2) A local manufacturing plant randomly selected 200 items from a production run and 9 of them are defective. The proportion of defective items in this sample is a ___.
A) parameter
B) sample
C) population
D) statistic
E) frame
Answer: D
Q3) Statistics are used to market vitamins.
A)True
B)False
Answer: True
Q4) List the four key elements of business statistics.
Answer: Collect data, analyze data, interpret data, and present findings.
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Page 3
Chapter 2: Organizing and Visualizing Data
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Sample Questions
Q1) There are four majors in the School of Business at your local university, Accounting, Finance, Marketing and Management. 240 students are in Accounting major, 160 in Finance major, 80 in marketing major and 320 are in Management major. Develop a relative frequency table for the data.
Answer: 11ea645c_71c4_4bd3_9252_05974ed5af01_TB1679_00
Q2) A scatter plot is a two-dimensional graph plot of data containing pairs of observations on two numerical variables.
A)True
B)False
Answer: True
Q3) For any given data set, a frequency distribution with a larger number of classes will always be better than the one with a smaller number of classes. A)True
B)False
Answer: False
Q4) A histogram can be described as a type of vertical bar chart. A)True
B)False
Answer: True
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Chapter 3: Descriptive Statistics
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Sample Questions
Q1) The number of speeding tickets given by a sample of 14 police officers in a month are as follows: 63, 35, 67, 63, 55, 75, 84, 13, 67, 54, 59, 49, 58, and 67. Compute the range, interquartile range and the standard deviation.
Answer: Range = 71, Interquartile range (IQR) = 13, Standard deviation = 17.36
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) The range and interquartile range don't take into account all of the values in a data set when describing variation.
A)True
B)False
Answer: True
Q4) The sum of deviations about the arithmetic mean is always equal to zero.
A)True
B)False
Answer: True
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5
Chapter 4: Gathering Data
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Sample Questions
Q1) Financial analyst Larry Potts needs a sample of 100 securities listed on either the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX). According to the Wall Street Journal's "Stock Market Data Bank," 2,531 NYSE securities and AMEX 746 securities were traded on the previous business day. Larry directs his staff to randomly select 77 NYSE and 23 AMEX securities. His sample is a ___.
A) disproportionate systematic sample
B) disproportionate stratified sample
C) proportionate stratified sample
D) proportionate systematic sample
E) proportionate cluster sampling
Q2) What is the difference between stratified and cluster sampling? If the objective is to increase precision, which method is preferred?
Q3) Sampling errors \(\textbf{ cannot }\) by determined objectively for nonrandom sampling techniques.
A)True
B)False
Q4) What is the difference between a census and a sample?
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Chapter 5: Probability
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Sample Questions
Q1) The department in which you work in your company has 24 employees: 10 women and 14 men. A team of 4 employees must be selected to represent the department at a companywide meeting in the headquarters of the company. The team must have two women and two men. How many different teams of 4 can be selected?
A) 12
B) 35
C) 136
D) 2024
E) 4095
Q2) Given two events A and B each with a non-zero probability, if the conditional probability of A given B is zero, it implies that the events A and B are independent.
A)True
B)False
Q3) The department in which you work in your company has 24 employees. A team of 3 employees must be selected to represent the department at a companywide meeting in the headquarters of the company. How many different teams of 3 can be selected?
Q4) Name the branch of statistics that is supported by probability.
Q5) What are the three methods of assigning probabilities?
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Chapter 6: Decision Analysis and Expected Value
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Sample Questions
Q1) To compute the variance of a discrete distribution, it is \(\textbf{ not }\) necessary to know the mean of the distribution.
A)True
B)False
Q2) In a decision-making under risk scenario, the expected monetary value of a decision alternative is the weighted average (using the probability of each state of nature as the weight) of the payoffs to the decision alternative in each state of the nature.
A)True
B)False
Q3) In a decision-making under risk scenario, the expected monetary value of a decision alternative is the arithmetic average of the payoffs to the decision alternative in each state of the nature.
A)True
B)False
Q4) The amount of time a patient waits in a doctor's office is an example of a continuous random variable.
A)True
B)False
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8
Chapter 7: Discrete Probability Distributions
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Sample Questions
Q1) The Poisson distribution is a continuous distribution which is very useful in solving waiting time problems.
A)True
B)False
Q2) Aluminum castings are processed in lots of five each. A sample of two castings is randomly selected from each lot for inspection. A particular lot contains one defective casting; and x is the number of defective castings in the sample. P(x=1) is ___.
A) 0.2
B) 0.4
C) 0.6
D) 0.8
E) 1.0
Q3) The number of successes in a hypergeometric distribution is unknown.
A)True
B)False
Q4) For the Poisson distribution the mean represents twice the value of the standard deviation.
A)True
B)False
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Chapter 8: Continuous Distributions
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Sample Questions
Q1) In a standard normal distribution, if the area under curve to the right of a z-value is 0.10, then the area to the left of the same z-value is -0.10.
A)True
B)False
Q2) If x is continuously uniformly distributed over the interval 8 to 12, inclusively (8 \(\le\) x \(\le\) 12), then the probability, P(10.0 \(\le\) x \(\le\) 11.5), is ___.
A) 0.250
B) 0.333
C) 0.375
D) 0.500
E) 0.750
Q3) Let z be a normal random variable with mean 0 and standard deviation 1. The 90<sup>th</sup> percentile of z is ___.
A) 1.645
B) -1.25
C) 1.96
D) 1.28
E) -1.645
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Chapter 9: Sampling Distributions
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Sample Questions
Q1) Suppose a population has a mean of 400 and a standard deviation of 24. If a random sample of size 144 is drawn from the population, the probability of drawing a sample with a mean of more than 404.5 is ___.
A) 0.0139
B) 0.4861
C) 0.4878
D) 0.0122
E) 0.5000
Q2) Catherine Chao, Director of Marketing Research, needs a sample of Kansas City households to participate in the testing of a new toothpaste package. If 40% of the households in Kansas City prefer the new package, the probability that Catherine's random sample of 300 households will have a sample proportion between 0.35 and 0.45 is ___.
A) 0.9232
B) 0.0768
C) 0.4616
D) 0.0384
E) 0.8976
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11
Chapter 10: Confidence Intervals
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Sample Questions
Q1) If the population is \(\textbf{ not }\) normal but its standard deviation is known, and the sample size n is large (n 30), z distribution values may be used to determine interval estimates for the population mean.
A)True
B)False
Q2) James Desreumaux, VP of Human Resources of American First Banks (AFB), is reviewing the employee training programs of AFB banks. His staff randomly selected personnel files for 100 tellers in the Southeast Region and determined that their mean training time was 25 hours. Assume that the population standard deviation is 5 hours. The 92% confidence interval for the population mean of training times is ___.
A) 16.25 to 33.75
B) 24.30 to 25.71
C) 17.95 to 32.05
D) 24.12 to 25.88
E) 24.45 to 27.32
Q3) A sample of 120 adults from a large population has a mean IQ of 112 with a standard deviation of 10. Construct a 98% confidence interval for the true mean IQ of the population.
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Chapter 11: Hypothesis Testing for Single Populations
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Sample Questions
Q1) The probability of committing a Type I error is called the power of the test.
A)True
B)False
Q2) The rejection and non-rejection regions are divided by a point called the critical value.
A)True
B)False
Q3) Whenever hypotheses are established such that the alternative hypothesis is "\(\textbf{ not }\) equal to", the hypothesis test would be a two-tailed test.
A)True
B)False
Q4) Suppose a researcher is testing a null hypothesis that \(\mu\) = 61. A random sample of n = 36 is taken resulting in a sample mean of 63 and s = 9. The test statistic is
A) -0.22
B) 0.22 C) 1.33
D) 8.08
E) 7.58
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Chapter 12: Hypothesis Testing for Two Populations
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Sample Questions
Q1) Lucy Baker is analyzing demographic characteristics of two television programs, American Idol (population 1) and 60 Minutes (population 2). Previous studies indicate no difference in the ages of the two audiences. (The mean age of each audience is the same.) Lucy plans to test this hypothesis using a random sample of 100 from each audience. Her null hypothesis is ___.
A) \(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> \(\neq\) 0
B) \(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> 0
C) \(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> = 0
D) \(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> 0
E) \(\mu\)<sub>1</sub> - \(\mu\)<sub>2</sub> 1
Q2) Hypothesis tests conducted on sets of matched samples are sometimes referred to as correlated t tests.
A)True
B)False
Q3) If the variances of the two populations are \(\textbf{ not }\) equal, it is appropriate to use the "pooled" formula to determine the t statistic for the hypothesis test of the difference in the two population means.
A)True
B)False
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Page 14
Chapter 13: Analysis of Variance Anova
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Sample Questions
Q1) Medical Wonders is a specialized interior design company focused on healing artwork. The CEO, Kathleen Kelledy, claims that artwork has healing effects for patients staying in a hospital, as measured by reduced length of stay. Her current client is a children's cancer hospital. Kathleen is interested in determining the effect of three different pieces of healing artwork on children. She chooses three paintings (a horse photo, a bright abstract, and a muted beach scene) and randomly assigns six hospital rooms to each painting. Kathleen's null hypothesis is ___.
A) \(\mu\)<sub>1</sub> = \(\mu\)<sub>2</sub> = \(\mu\)<sub>3</sub>
B) \(\mu\)<sub>1</sub> \(\neq\) \(\mu\)<sub>2</sub> \(\neq\)\(\mu\)<sub>3</sub>
C) \(\mu\)<sub>1</sub> \(\ge\) \(\mu\)<sub>2</sub> \(\ge\)\(\mu\)<sub>3</sub>
D) \(\mu\)<sub>1</sub> \(\le\)\(\mu\)<sub>2</sub> \(\le\)\(\mu\)<sub>3</sub>
E) \(\mu\)<sub>1</sub> \(\le\) \(\mu\)<sub>2</sub> \(\mu\)<sub>3</sub>
Q2) Analysis of variance may be used to test the differences in the means of more than two independent populations.
A)True
B)False
Q3) The statistical methods of analysis of variance assume equal sample means.
A)True
B)False
Page 15
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Chapter 14: Linear Correlation and Simple Linear Regression Analysis
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Sample Questions
Q1) A standard deviation of the error of the regression model is called the ___.
A) coefficient of determination
B) sum of squares of error
C) standard error of the estimate
D) R-squared
E) coefficient of correlation
Q2) The total of the squared residuals is called the ___.
A) coefficient of determination
B) sum of squares of error
C) standard error of the estimate
D) R-squared
E) coefficient of correlation
Q3) In regression, the predictor variable is called the dependent variable.
A)True
B)False
Q4) The strength of a linear relationship in simple linear regression change if the units of the data are converted, say from feet to inches.
A)True
B)False
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Chapter 15: Categorical Versus Categorical: Tests
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Sample Questions
Q1) In a chi-square goodness-of-fit test, theoretical frequencies are also called expected frequencies.
A)True
B)False
Q2) A variable contains five categories. It is expected that data are uniformly distributed across these five categories. To test this, a sample of observed data is gathered on this variable resulting in frequencies of 27, 30, 29, 21, and 24. Using \(\alpha\)=.01, the observed value of chi-square is ___.
A) 12.09
B) 9.82
C) 13.28
D) 17.81
E) 2.09
Q3) A two-way table used for a test of independence is sometimes called a contingency table.
A)True B)False
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