2.1. Provide context for data.

 

1. In the fall of 2007, the Pew Internet & Life Project conducted telephone interviews

with a sample of American adults aged 18 and older about online shopping. American

adults aged 18 and older constitute the ______ of the study.

A. Who

B. What

C. When

D. Where

E. How

 

2.2. Identify cases, variables and any units.

 

2. A few of the variables for which data were collected in the Pew Internet & Life

Project study about online shopping include age, gender, income, and number of hours

spent shopping online per month. Which of the variables is categorical?

A. Age

B. Gender

C. Income

D. Number of hours spent shopping online

E. None

 

2.2. Identify cases, variables and any units.

 

3. The Pew Internet & Life Project study about online shopping asked respondents to

indicate their education level on the following scale: Less than High School, High

School, Some College, College +. Which of the following statements is (are) true?

A. Education level is a categorical variable.

B. Education level is nominal scaled.

C. Education level is ordinal scaled.

D. Both A and B

E. Both A and C

 

2.1. Provide context for data.

 

4. Consumer Reports Health routinely compares drugs in terms of effectiveness and

safety. In summer 2008 they reviewed drugs used to treat arthritis. Among the

information reported was convenience of use (how many pills required each day) and

possible side effects (e.g., dizziness, stomach upset). Convenience of use and possible

side effects constitute the ________ of the study.

A. Who

B. What

C. When

D. Where

E. How

 

 

2.1. Provide context for data.

 

5. What is the “Who” in a Consumer Reports Health study on the effectiveness and

safety of drugs used to treat arthritis?

A. drugs to treat arthritis currently on the market

B. convenience of use and possible side effects

C. summer 2008

D. the United States

E. testing on drugs

 

2.2. Identify cases, variables and any units.

 

6. A Consumer Reports Health study on the effectiveness and safety of arthritis drugs

collected data on possible side effects. This is what kind of variable?

A. Quantitative

B. Categorical

C. Nominal

D. Both A and C

E. Both B and C

 

2.2. Identify cases, variables and any units.

 

7. A Consumer Reports Health study on arthritis drugs takes into consideration cost.

Cost is

A. is a nominal variable.

B. is a categorical variable.

C. is a quantitative variable.

D. is an ordinal variable.

E. is an irrelevant variable.

 

2.2. Identify cases, variables and any units.

 

8. The Human Resources Department of a large corporation maintains records on its

employees. Data are maintained of the following variables: Age, Employment Category,

Education, Whether or not the employee participates in a wellness program, and

Paycheck benefit deductions. Which of these variables are categorical?

A. Age, Employment Category, and Education

B. Employment Category, Education, and Whether or not the employee participates in

a wellness program

C. Education, Whether or not the employee participates in a wellness program, and

Paycheck benefit deductions

D. All of the variables

E. None of the variables

 

2.2. Identify time series and cross sections.

 

9. Which of the following is (are) based on cross sectional data?

 

A. Company quarterly profits

B. Percentage of American adults who work full time

C. Historical closing stock prices

D. All of the above

E. None of the above.

 

2.2. Identify time series and cross sections.

 

10. Which of the following is (are) time series data?

A. Weekly receipts at a clothing boutique

B. Monthly demand for an automotive part

C. Quarterly sales of automobiles

D. All of the above

E. None of the above

2.1. Identify cases, variables and any units.

 

1. A university is interested in gauging student satisfaction in its online MBA program.

A survey is designed and administered via the Internet to a sample of students currently

active in the program. Which of the following would best describe the cases?

A. Participants

B. Respondents

C. Experimental Units

D. Subjects

E. Variables

 

2.2. Identify cases, variables and any units.

 

2. In a survey undertaken by a university to gauge student satisfaction in its online MBA

program, one question asked students to indicate their employment status (unemployed,

employed part-time, employed full-time). Which of the following is true?

A. This variable is categorical.

B. This variable is quantitative.

C. This is an identifier variable.

D. Both A and C.

E. Both B and C.

 

2.2. Identify cases, variables and any units.

 

3. In a survey undertaken by a university to gauge student satisfaction in its online MBA

program, one question asked students to indicate the number of credits they had

transferred into the program. Which of the following is true?

A. This variable is categorical.

B. This variable is transactional.

C. This variable is quantitative.

D. This is an identifier variable.

E. This variable is nominal.

 

2.1. Identify cases, variables and any units.

 

4. Researchers in e-commerce design an experiment to determine what factors are most

important to online consumers when completing a transaction via the Internet.

Individuals perform tasks on a set of Web sites and record their impressions about

various attributes. Which of the following would best describe the cases?

A. Participants

B. Respondents

C. Experimental Units

D. Transactions

E. Variables

 

2.2. Identify cases, variables and any units.

 

5. A popular travel magazine regularly reviews hotels worldwide. In a recent issue, it

focused on hotels in Hawaii. Among the variables for which it provided data was

whether or not the hotel included a spa. This is a

A. quantitative variable.

B. identifier variable.

C. ordinal variable.

D. categorical variable.

E. transactional variable.

 

2.2. Identify cases, variables and any units.

 

6. A popular travel magazine regularly reviews hotels worldwide. In a recent issue, it

focused on hotels in Hawaii. Among the variables for which it provided data was the

price range for rooms with an ocean view. Which of the following statements is true?

A. These data are transactional.

B. This variable is quantitative and the units are $.

C. This variable is quantitative and the units are number of rooms.

D. This variable is qualitative and ordinal.

E. These data are time series.

 

2.2. Identify cases, variables and any units.

 

7. A mid-priced chain of hotels, Hometown Suites, strives to make its guests “feel at

home” by providing amenities such as microwaves in every room. Comment cards are

used to get feedback on the importance of such amenities by asking guests to rate them

using the scale: ___ Essential ___ Important ___ Not Important. These data are

A. qualitative.

B. nominal.

C. ordinal.

D. both A and B.

E. both A and C.

 

2.3. Identify data sources.

 

8. A locally owned spa, Alexander’s, is interested in adding a tea room that not only

offers specialty teas but an organic lunch menu. In order to determine how many of its

regular customers would be interested in such an addition, Alexander’s sent out a short email

questionnaire. The source of these data is

A. the Internet.

B. transactional.

C. a designed survey.

D. a designed experiment.

E. secondary.

 

2.2. Identify time series and cross sections.

 

9. A locally owned spa, Alexander’s, is interested in adding a tea room that not only

offers specialty teas but an organic lunch menu. In order to determine how many of its

regular customers would be interested in such an addition, Alexander’s sent out a short email

questionnaire. One question asked its customers to indicate how much they spend

monthly on all natural, organic products. These data are

A. cross-sectional.

B. time series.

C. categorical.

D. transactional.

E. experimental.

 

2.2. Identify time series and cross sections.

 

10. A mid-priced chain of hotels, Hometown Suites, collects data on monthly occupancy

rates for forecasting and planning purposes. These data are

A. cross-sectional.

B. time series.

C. categorical.

D. transactional.

E. experimental.

 

 

 

3.3. Analyze the sampling method.

 

1. The administration of a large university is interested in learning about the types of

wellness programs that would interest its employees. Suppose that there are five

categories of employees (administration, faculty, professional staff, clerical and

maintenance) and the university decides to randomly select ten individuals from each

category. This sampling plan is called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.3. Analyze the sampling method.

 

2. The administration of a large university is interested in learning about the types of

wellness programs that would interest its employees. Suppose that the university

randomly selects a school (e.g., the Business School) and surveys all of the individuals

(administration, faculty, professional staff, clerical and maintenance) who work in that

school. This sampling plan is called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.2. Analyze the sampling method.

 

3. ASW, a regional shoe chain, has recently launched an online store. Sales via the

Internet have been sluggish compared to their brick and mortar stores, and management

wants to survey its regular customers about potential concerns regarding the security of

online transactions. Suppose that ASW’s regular customers belong to a rewards program

and have a customer rewards ID number. ASW decides to randomly select 100 numbers.

This sampling plan is called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.3. Analyze the sampling method.

 

4. ASW, a regional shoe chain, has recently launched an online store. Sales via the

Internet have been sluggish compared to their brick and mortar stores, and management

wants to survey its regular customers about potential concerns regarding the security of

online transactions. Suppose that ASW has an alphabetized list of regular customers who

belong to their rewards program. After randomly selecting a customer on the list, every

25th customer from that point on is chosen to be in the sample. This sampling plan is

called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.2. Identify population, sample, sampling frame and parameter.

 

5. ASW, a regional shoe chain, has recently launched an online store. Sales via the

Internet have been sluggish compared to their brick and mortar stores, and management

wants to survey its regular customers about potential concerns regarding the security of

online transactions. All regular ASW customers is known as the ________ of the study.

A. parameter

B. statistic

C. target population

D. sampling frame

E. sample

 

3.2. Identify population, sample, sampling frame and parameter.

 

6. ASW, a regional shoe chain, has recently launched an online store. Sales via the

Internet have been sluggish compared to their brick and mortar stores, and management

wants to survey its regular customers about potential concerns regarding the security of

online transactions. Which of the following is the parameter of interest in the ASW

study?

A. all regular ASW customers

B. % of regular ASW customers who have concerns about online security

C. ASW customers who belong to the rewards program

D. % of ASW customers who belong to the rewards program that don’t shop online

E. none of the above

 

3.5. Identify bias.

 

7. ASW, a regional shoe chain, has recently launched an online store. Sales via the

Internet have been sluggish compared to their brick and mortar stores, and management

wants to survey its regular customers about potential concerns regarding the security of

online transactions. One member of the management team at ASW suggests that their

survey could be conducted online. Customers logging on to the online store would be

asked to take a few minutes to complete the survey and would be offered a coupon as

incentive to participate. Which of the following statements is true?

A. This is a voluntary response sample.

B. This would result in an unbiased random sample.

C. This would result in a biased sample.

D. Both A and B

E. Both A and C

 

3.2. Identify population, sample, sampling frame and parameter.

 

8. A consumer research group is interested in how older drivers view hybrid cars.

Specifically, they wish to assess the percentage of drivers in the U.S. 50 years of age or

older who intend to purchase a hybrid in the next two years. They selected a systematic

sample from a list of AARP (American Association of Retired Persons) members.

Based on this sample, they estimated the percentage to be 17%. The sampling frame for

this study is

A. all drivers in the U.S. 50 years of age or older

B. 17%

C. the list of AARP members

D. how older drivers view hybrid cars

E. none of the above

 

3.2. Identify population, sample, sampling frame and parameter.

 

9. A consumer research group is interested in how older drivers view hybrid cars.

Specifically, they wish to assess the percentage of drivers in the U.S. 50 years of age or

older who intend to purchase a hybrid in the next two years. They selected a systematic

sample from a list of AARP (American Association of Retired Persons) members.

Based on this sample, they estimated the percentage to be 17%. Which of the following

statements about this study is true?

A. 17% of all U.S. drivers 50 years of age or older intend to purchase a hybrid in the

next two years.

B. 17% is a parameter.

C. 17% is a statistic.

D. Both A and B

E. Both A and C

 

3.4. Identify bias.

 

10. Which of the following survey questions is leading?

A. Given the prevalence of identity theft, are you reluctant to provide credit card

information online?

B. Are you confident that any information you provide online is secure?

C. Are you concerned about the security of online transactions?

D. Both A and B

E. Both B and C

3.2. Analyze the sampling method.

 

1. Management at a large multinational corporation would like to survey its employees

about the level of interest in combining flexible work schedules with telecommuting from

home. Each employee has an ID number, and the administration plans to randomly select

250 numbers. This sampling plan is called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.3. Analyze the sampling method.

 

2. Management at a large multinational corporation would like to survey its employees

about the level of interest in combining flexible work schedules with telecommuting from

home. The HR Department has an alphabetized list of newly hired employees (hired

within the last year). After starting the process by randomly selecting an employee from

the list, then every 5th name is chosen to be included in the sample. This sampling plan is

called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.2. Identify population, sample, sampling frame and parameter.

 

3. Management at a large multinational corporation would like to survey its employees

about the level of interest in combining flexible work schedules with telecommuting from

home. Which of the following is the parameter of interest in this study?

A. All employees at the corporation.

B. Percentage of employees who are interested in combining flexible work schedules

with telecommuting from home.

C. Employees who work overtime.

D. Percentage of employees who do not have a computer at home.

E. None of the above

 

3.4. Identify bias.

 

4. Suppose that a local government agency is interested in gauging public opinion about

natural gas drilling in northeastern Pennsylvania by surveying residents who live near a

proposed drilling site. Which of the following questions is leading?

A. Do you support the proposed gas drilling?

B. Given the positive economic impact, do you support gas drilling?

C. Given the negative impact on the environment, do you oppose gas drilling?

D. Both A and B.

E. Both B and C.

 

3.2. Identify population, sample, sampling frame and parameter.

5. The online MBA director at a large business school surveys a sample of current

students to determine their level of satisfaction with the program. She finds that 67% are

“very satisfied” with the online program. This is a

A. parameter.

B. statistic.

C. target population.

D. sampling frame.

E. good result.

 

3.5. Identify bias.

 

6. A women’s advocacy group believes that there is gender discrimination in the

financial services industry. One member of the group, a financial analyst, offers to

survey a sample of women at her company about this issue. Which of the following

statements is true about the proposed study?

A. It involves a stratified sample that is representative of the population.

B. It involves a simple random sample that is representative of the population.

C. It involves a convenience sample and may not be representative of the population.

D. It will result in unbiased data.

E. It involves taking a census of the target population.

 

3.5. Identify bias.

 

7. During the BP Gulf oil crisis in the summer of 2010, a local television news program

routinely asked viewers to call in with their opinion about proposed solutions to the

problem. These results were likely biased because

A. of a bad sampling frame.

B. of an undefined target population.

C. leading questions.

D. of a voluntary response sample.

E. of measurement error.

 

3.2. Identify population, sample, sampling frame and parameter.

 

8. In May, 2010, the Pew Research Center for the People & the Press carried out a

national survey to gauge opinion on the Arizona Immigration Law. It found that 59%

approved of the new law. This is a

A. statistic.

B. parameter.

C. target population.

D. sampling frame.

E. census.

 

3.3. Analyze the sampling method.

 

9. The HR department of a large company wants to determine how often to bring

representatives from the financial firm managing employee pensions on site to meet with

individuals about their retirement plans. In order to determine level of interest, they

decide to survey employees. Suppose they group employees by age categories (e.g.,

under 30; 30 – under 45; 45 – under 60, 60 or older) and randomly select 50 individuals

from each category. This sampling plan is called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

 

3.3. Analyze the sampling method.

 

10. The HR department of a large company wants to determine how often to bring

representatives from the financial firm managing employee pensions on site to meet with

individuals about their retirement plans. In order to determine level of interest, they

decide to survey employees. Suppose they select one department (e.g., Sales) and survey

all employees within that department. This sampling plan is called

A. Simple Random Sampling

B. Stratified Sampling

C. Cluster Sampling

D. Systematic Sampling

E. Convenience Sampling

1.    A large national retailer of electronics conducted a survey to determine consumer preferences for various brands of digital cameras and the data are summarized in the table shown below. The percentage of consumers who are male and prefer Pentax is

	Female	Male	Total
Sony Cyber-Shot	73	59	132
Kodak – Easy Share	49	47	96
Cannon Power Shot	58	33	91
Pentax	37	41	78
Olympus	45	28	73
OtherBrands	86	67	153
Total	348	275	623

A. 44.1 % (275/623). B.  6.6% (41/623).
C. 52.6% (41/78).
D. 14.9% (41/275).
E. 12.5% (78/623).

4.3. Find conditional and marginal distributions.

2.    A large national retailer of electronics conducted a survey to determine consumer preferences for various brands of digital cameras and the data are summarized in the table shown below. Of the consumers who are male, the percentage who prefer Pentax is

 

	Female	Male	Total
Sony Cyber-Shot	73	59	132
Kodak – Easy Share	49	47	96
Cannon Power Shot	58	33	91
Pentax	37	41	78
Olympus	45	28	73
OtherBrands	86	67	153
Total	348	275	623

A. 44.1 % (275/623). B.  6.6% (41/623).
C. 52.6% (41/78).
D. 14.9% (41/275).
E. 12.5% (78/623).


4.3. Find conditional and marginal distributions.

3.    A large national retailer of electronics conducted a survey to determine consumer preferences for various brands of digital cameras and the data are summarized in the table shown below. Of the consumers who prefer Pentax, what percentage is male?


 
    Female    Male    Total      
Sony Cyber-Shot    73    59    132      
Kodak – Easy Share    49    47    96      
Cannon Power Shot    58    33    91      
Pentax    37    41    78      
Olympus    45    28    73      
Other Brands    86    67    153      
Total    348    275    623     


A. 44.1 % (275/623). B.  6.6% (41/623).
C. 52.6% (41/78).
D. 14.9% (41/275).
E. 12.5% (78/623).

4.3. Determine if a display of data is appropriate.

4.    Based on the side-by-side bar chart summarizing consumer preferences for various brands of digital cameras by gender, which of the following statements is (are) true?

A.    It appears that camera preference and gender are not related.
B.    It appears that camera preference and gender are not independent.
C.    It appears that camera preference and gender are independent.
D.    More males than females prefer Cannon.
E.    More females than males prefer Pentax.


4.2.    Determine if a display of data is appropriate.
4.3.   
5.    The following bar chart summarizing consumer preferences for various brands of digital cameras shows



A.    the marginal distribution of brands.
B.    the conditional distribution of brands.
C.    the contingency distribution of brands.
D.    the distribution for a quantitative variable.
E.    none of the above.

4.4.    Examine a contingency table.

6.    A full service brokerage firm gathered information on how their clients were investing for retirement.  Based on age, clients were categorized according to where the largest percentage of their retirement portfolio was invested and shown in the table below. The percentage of clients who are over age 50 and invest in mutual funds is

 
    Age 50 or Younger    Over Age 50    Total      
Mutual Funds    30    34    64      
Stocks    37    45    82      
Bonds    19    23    42      
Total    86    102    188     


A. 3.1% (34/64).
B.  33.3% (34/102).
C. 18.1% (34/188).
D. 34% (64/188).
E. 54.3% (102/188).
4.3. Find conditional and marginal distributions.

7.    A full service brokerage firm gathered information on how their clients were investing for retirement.  Based on age, clients were categorized according to where the largest percentage of their retirement portfolio was invested and shown in the table below. Of the clients over age 50, the percentage who invest in mutual funds is

 
    Age 50 or Younger    Over Age 50    Total      
Mutual Funds    30    34    64      
Stocks    37    45    82      
Bonds    19    23    42      
Total    86    102    188     

A. 3.1% (34/64).
B.  33.3% (34/102).
C. 18.1% (34/188).
D. 34% (64/188).
E. 54.3% (102/188).

4.3. Find conditional and marginal distributions.

8.    A full service brokerage firm gathered information on how their clients were investing for retirement.  Based on age, clients were categorized according to where the largest percentage of their retirement portfolio was invested and shown in the table below. Of the clients who invest in mutual funds, the percentage over age 50 is

 
    Age 50 or Younger    Over Age 50    Total      
Mutual Funds    30    34    64      
Stocks    37    45    82      
Bonds    19    23    42      
Total    86    102    188     

A. 53.1% (34/64).
B.  33.3% (34/102).
C. 18.1% (34/188).
D. 34% (64/188).
E. 54.3% (102/188).


4.3. Find conditional and marginal distributions.

9.    A full service brokerage firm gathered information on how their clients were investing for retirement.  Based on age, clients were categorized according to where the largest percentage of their retirement portfolio was invested and shown in the table below. The percentage of clients over age 50 is

 
    Age 50 or Younger    Over Age 50    Total      
Mutual Funds    30    34    64      
Stocks    37    45    82      
Bonds    19    23    42      
Total    86    102    188     

A. 3.1% (34/64).
B.  33.3% (34/102).
C. 18.1% (34/188).
D. 34% (64/188).
E. 54.3% (102/188).

4.2. Determine if a display of data is appropriate.

10.    The pie chart below for data collected about clients of brokerage firm shows



A.    the distribution of a quantitative variable.
B.    the contingency distribution of investment type.
C.    the conditional distribution of investment type.
D.    the marginal distribution of investment type.
E.    the joint distribution of investment type.

4.1. Create and analyze relative frequency distributions.

1.    A restaurant uses comment cards to get feedback from its customers about newly added items to the menu.   It recently introduced homemade organic veggie burgers. Customers who tried the new burger were asked if they would order it again. The data are summarized in the table below. What percentage of customers would definitely order the veggie burger again?

 
Response    Frequency      
Definitely would.    10      
Most likely would.    40      
Maybe    12      
Definitely would not.    3     

A. 10%
B. 15%
C.  20%
D. 40%
E. 77%

4.1.    Create and analyze relative frequency distributions.

2.    A restaurant uses comment cards to get feedback from its customers about newly added items to the menu.   It recently introduced homemade organic veggie burgers. Customers who tried the new burger were asked if they would order it again. The data are summarized in the table below. What percentage of customers would most likely or definitely order the veggie burger again?

 
Response    Frequency      
Definitely would.    10      
Most likely would.    40      
Maybe    12      
Definitely would not.    3     

A. 10%
B. 15%
C.  40%
D. 50%
E. 77%


4.2.    Determine if a display of data is appropriate.

3.    A restaurant uses comment cards to get feedback from its customers about newly added items to the menu.   It recently introduced homemade organic veggie burgers. Customers who tried the new burger were asked if they would order it again. Which of the following would be an appropriate method for displaying the data shown in the table?

 
Response    Frequency      
Definitely would.    10      
Most likely would.    40      
Maybe    12      
Definitely would not.    3     

A.    Contingency table.
B.    Segmented bar chart.
C.    Pie chart.
D.    Both A and B.
E.    Both B and C.

4.3.    Determine if a display of data is appropriate.

4.    In May, 2010, the Pew Research Center for the People & the Press carried out a national survey to gauge opinion on the Arizona Immigration Law.  Responses (Favor, Oppose, Don’t Know) were examined according to groups defined by political party affiliation (Democrat, Republican, Independent).  Which of the following would be appropriate for displaying these data?

A.    Contingency table.
B.    Pie charts.
C.    Segmented bar chart.
D.    Side by side bar chart.
E.    All of the above.

4.4.    Examine a contingency table.

5.    A regional survey was carried out to gauge public opinion on the controversial Arizona Immigration Law (results shown below).  How many respondents are Republican and favor the law?

 
Response    Democrat    Republican    Independent      
Favor    50    93    35      
Oppose    85    45    60      
Don't Know    5    7    20     

A.    93
B. 45
C. 145
D. 7
E. 85


4.3. Determine if a display of data is appropriate.

6.    A regional survey was carried out to gauge public opinion on the controversial Arizona Immigration Law. The results are displayed in the segmented bar chart below. Which of the following statements is true?


 

A.    A greater percentage of Republicans oppose the law compared to Democrats.
B.    A greater percentage of Republicans oppose the law compared to Independents.
C.    Opinion about the law appears to be independent of political party affiliation.
D.    A greater percentage of Democrats oppose the law compared to Republicans.
E.    The segmented bar chart is not appropriate for these data.

4.3. Find conditional and marginal distributions.

7.    A regional survey was carried out to gauge public opinion on the controversial Arizona Immigration Law. Based on the results displayed in the table below, what percent of respondents is Independent?

 
Response    Democrat    Republican    Independent      
Favor    50    93    35      
Oppose    85    45    60      
Don't Know    5    7    20     

A. 35%
B. 9%
C. 29%
D. 45%
E. 25%


4.3. Find conditional and marginal distributions.

8.    A regional survey was carried out to gauge public opinion on the controversial Arizona Immigration Law (results shown below).  What percent oppose the law?

 
Response    Democrat    Republican    Independent      
Favor    50    93    35      
Oppose    85    45    60      
Don't Know    5    7    20     

A. 48%
B. 45%
C.  32%
D. 25%
E. 61%

4.3. Find conditional and marginal distributions.

9.    A regional survey was carried out to gauge public opinion on the controversial Arizona Immigration Law (results shown below).  Of respondents who are Democrat, what percent oppose the law?

 
Response    Democrat    Republican    Independent      
Favor    50    93    35      
Oppose    85    45    60      
Don't Know    5    7    20     

A. 13%
B. 35%
C.  22%
D. 45%
E. 61%

4.3. Find conditional and marginal distributions.

10.    A regional survey was carried out to gauge public opinion on the controversial Arizona Immigration Law (results shown below).  Of respondents who oppose the law, what percent is Democrat?

 
Response    Democrat    Republican    Independent      
Favor    50    93    35      
Oppose    85    45    60      
Don't Know    5    7    20     

A. 13%
B. 35%
C.  22%
D. 45%
E. 61%

5.2. Describe displays of distributions.
1.    Below is a histogram of salaries (in $) for a sample of U.S. marketing managers. The shape of this distribution is
 

A.    symmetric.
B.    bimodal.
C.    right skewed.
D.    left skewed.
E.    normal.

5.4. Interpret summary statistics.
2.    Based on the five number summary (shown below) for salaries of U.S. marketing managers, the IQR is

 
Min    Q1    Median    Q3    Max      
46360    69693    77020    91750    129420     
 
A.    $83,060.      
B.    $22.057.      
C.    $69,693.      
D.    $77.020.      
E.    $14,566.     


5.3. Describe displays of distributions.
3.    Below is a histogram of salaries (in $) for a sample of U.S. marketing managers. The most appropriate measure of central tendency for these data is the
 

A.    median.
B.    mean.
C.    mode.
D.    range.
E.    standard deviation.

5.6.    Interpret summary statistics.
4.    Consider the five number summary (shown below) for salaries of U.S. marketing managers. Suppose the marketing manager who was earning $129,420 got a raise and is now earning $140,000.  Which of the following statement is true?

 
Min    Q1    Median    Q3    Max      
46360    69693    77020    91750    129420     

A.    The mean would increase.
B.    The median would increase.
C.    The range would increase.
D.    Both A and C.
E.    All of the above.


5.3.    Analyze data of quantitative variables.
5.    The following table shows closing share prices for a small sample of companies. The mean closing share price is

 
COMPANY    CLOSING SHARE PRICE – 08/07      
3M Dental Products    86.95      
Tyco Electronics Power Systems    47.45      
Kyocera America Inc.    94.10      
Pfizer Inc.    22.39      
Xerox Company    17.56      
Northrop Grumman Corporation    75.81      
Lockheed Martin Maritime Systems    100.17      
Sony DADC    51.91      
Matsushita Electronic Components    17.91      
Foster Wheeler Environmental Corp.    55.67     
 
A.    $31.23.      
B.    $44.65.      
C.    $56.99.      
D.    $62.19.      
E.    $75.77.     


5.4.    Analyze data of quantitative variables.
6.    The following table shows closing share prices for a small sample of companies. The standard deviation in closing share prices is

 
COMPANY    CLOSING SHARE PRICE – 08/07      
3M Dental Products    86.95      
Tyco Electronics Power Systems    47.45      
Kyocera America Inc.    94.10      
Pfizer Inc.    22.39      
Xerox Company    17.56      
Northrop Grumman Corporation    75.81      
Lockheed Martin Maritime Systems    100.17      
Sony DADC    51.91      
Matsushita Electronic Components    17.91      
Foster Wheeler Environmental Corp.    55.67     
 
A.    $31.43.      
B.    $44.65.      
C.    $56.99.      
D.    $62.19.      
E.    $75.77.     


5.9. Compare results using standardization.
7.    The following table shows closing share prices for a small sample of companies. The
z score for the share price for Matsushita Electronic Components is

 
COMPANY    CLOSING SHARE PRICE – 08/07      
3M Dental Products    86.95      
Tyco Electronics Power Systems    47.45      
Kyocera America Inc.    94.10      
Pfizer Inc.    22.39      
Xerox Company    17.56      
Northrop Grumman Corporation    75.81      
Lockheed Martin Maritime Systems    100.17      
Sony DADC    51.91      
Matsushita Electronic Components    17.91      
Foster Wheeler Environmental Corp.    55.67     

A. 1.24.
B. 2.34.
C.  -2.34.
D. -3.00.
E. -1.24.

5.7. Interpret displays of distributions.
8.    The following boxplots show monthly sales revenue figures ($ thousands) for a discount office supply company with locations in three different regions of the U.S. (Northeast, Southeast, and West). Which of the following statements is true?



A.    The northeast has the lowest mean sales revenue.
B.    The southeast has the lowest median sales revenue.
C.    The west has the lowest mean sales revenue.
D.    The west has the lowest median sales revenue.
E.    None of the above.

5.7.    Interpret displays of distributions.
9.    The following boxplots show monthly sales revenue figures ($ thousands) for a discount office supply company with locations in three different regions of the U.S. (Northeast, Southeast, and West). Which of the following statements is false?



A.    The west has the most variable sales revenues.
B.    The west has the largest IQR.
C.    The southeast has the smallest IQR.
D.    The northeast has the most variable sales revenues.
E.    The southeast has the least variable sales revenues.


5.10. Interpret displays of distributions.
10.    Following is a time series graph for monthly closing stock prices of 3M Dental Products. Which of the following statements is true?



A.    The data are stationary.
B.    The data show an upward trend.
C.    A histogram would provide a good representation of these data.
D.    Both A and C.
E.    Both B and C.

5.3.    Analyze data of quantitative variables.
1.    The following table shows total assets ($ billion) for a small sample of U.S. banks. The mean for these data is

 
BANK    ASSETS ($ billion)      
Bank of New York    88      
Regions Financial    80      
Fifth Third Bank    58      
State Street Bank and Trust    92      
Branch Banking and Trust Company    81      
Chase Bank    70      
Key Bank    89      
PNC Bank    84     

A.    $ 80.25 billion.
B.    $ 100.35 billion.
C.    $ 75.68 billion.
D.    $ 84 billion.
E.    $ 89 billion.

5.4.    Analyze data of quantitative variables.
2.    The following table shows total assets ($ billion) for a small sample of U.S. banks. The standard deviation for these data is

 
BANK    ASSETS ($ billion)      
Bank of New York    88      
Regions Financial    80      
Fifth Third Bank    58      
State Street Bank and Trust    92      
Branch Banking and Trust Company    81      
Chase Bank    70      
Key Bank    89      
PNC Bank    84     

A.    $12.78 billion.
B.    $ 11.27 billion.
C.    $ 127.01 billion.
D.    $ 21.67 billion.
E.    $ 34 billion.


5.9. Compare results using standardization.
3.    The following table shows total assets ($ billion) for a small sample of U.S. banks. The z- score for the total assets of Fifth Third Bank is

 
BANK    ASSETS ($ billion)      
Bank of New York    88      
Regions Financial    80      
Fifth Third Bank    58      
State Street Bank and Trust    92      
Branch Banking and Trust Company    81      
Chase Bank    70      
Key Bank    89      
PNC Bank    84     

A. 1.25.
B.  -1.25.
C.  -2.5.
D. 1.97.
E. -1.97.

5.9. Compare results using standardization.
4.    The ASQ (American Society for Quality) regularly conducts a salary survey of its membership, primarily quality management professionals. Based on the most recently published mean and standard deviation, a quality control specialist calculated the z-score associated with his own salary and found it was -2.50. This tells him that his salary is

A.    2 and a half times more than the average salary.
B.    2 and a half times less than the average salary.
C.    is 2.5 standard deviations above the average salary.
D.    is 2.5 standard deviations below the average salary.
E.    much higher than the average salary.

5.4. Interpret summary statistics.
5.    Consider the five number summary of hourly wages ($) for a sample of sales managers. The range for these data is

 
Min    Q1    Median    Q3    Max      
20.94    37.64    44.77    49.34    67.11     
 
A.    $11.70      
B.    $46.17      
C.    $67.11      
D.    $20.94      
E.    $44.77     


5.4. Interpret summary statistics.
6.    Consider the five number summary of hourly wages ($) for a sample of sales managers. The IQR for these data is

 
Min    Q1    Median    Q3    Max      
20.94    37.64    44.77    49.34    67.11     
 
A.    $11.70      
B.    $46.17      
C.    $67.11      
D.    $20.94      
E.    $44.77     


5.6. Interpret summary statistics.
7.    Consider the five number summary of hourly wages ($) for a sample of sales managers. Suppose the mean hourly wage is $38.50. What can we say about the shape of the distribution?

 
Min    Q1    Median    Q3    Max      
20.94    37.64    44.77    49.34    67.11     

A.    The distribution of hourly wages for sales managers is symmetric.
B.    The distribution of hourly wages for sales managers is skewed right.
C.    The distribution of hourly wages for sales managers is skewed left.
D.    The distribution of hourly wages for sales managers is bimodal.
E.    None of the above.

5.6.    Interpret summary statistics.
8.    Consider the five number summary of hourly wages ($) for a sample of advertising / promotion managers. Suppose there had been an error and that the lowest hourly wage was $15.50 instead of $19.64. This would result in

 
Min    Q1    Median    Q3    Max      
19.64    29.36    34.18    40.86    57.26     


A.    an increase in the median.
B.    an increase in the standard deviation.
C.    a decrease in the range.
D.    a decrease in the IQR.
E.    an increase in the mean.


5.7.    Create and interpret displays of data.
9.    Data were collected on the hourly wage ($) for two types of marketing managers: (1) advertising / promotion managers and (2) sales managers. The results were used to create the following histograms.  Which of the following statements is true?


A.    The distribution of hourly wages for sales managers is unimodal and skewed right.
B.    The distribution of hourly wages for advertising/promotion managers is unimodal and skewed left.
C.    The distribution of hourly wages for sales managers is unimodal and skewed left.
D.    It appears that sales managers earn a lower hourly wage compared to advertising/promotion managers.
E.    Both C and D.


5.7. Create and interpret displays of data.
10.    The following boxplots show the closing share prices for a sample of technology companies on the first trading days in August 2007 and in August 2002.  Which of the following statement is true?


A.    The median closing share price is higher in August 2007 compared to August 2002.
B.    Closing prices are more variable in August 2007 compared to August 2002.
C.    The distribution of closing prices in August 2007 appears more symmetric than the distribution of closing prices in August 2002.
D.    Both A and B.
E.    All of the above.

6.2. Assign roles to variables.
1.    A study examined consumption levels of oil and carbon dioxide emissions for sample of counties. The response variable in this study is
A.    oil.
B.    oil consumption.
C.    carbon dioxide emissions.
D.    countries.
E.    none of the above.

6.2. Assign roles to variables.
2.    A supermarket chain gathers data on the amount they spend on promotional material (e.g., coupons, etc.) and sales revenue generated each quarter. The predictor variable is

A.    sales revenue.
B.    amount spent on promotional material.
C.    number of coupons offered.
D.    supermarket chains.
E.    none of the above.

6.1. Analyze scatterplots and correlation coefficients.
3.    The scatterplot shows monthly sales figures (in units) and number of months of experience for a sample of salespeople. The association between monthly sales and level of experience can be described as

A.    positive and weak.
B.    negative and weak.
C.    negative and strong.
D.    positive and strong.
E.    nonlinear.

6.3. Analyze scatterplots and correlation coefficients.
4.    The scatterplot shows monthly sales figures (in units) and number of months of experience for a sample of salespeople. The correlation between monthly sales and level of experience is most likely

A. -.235.
B. 0.
C.  .180.
D. -.914.
E. .914.

6.3. Interpret the value of correlation coefficients and squared correlations.
5.    Shown below is a correlation table showing correlation coefficients between stock price, earnings per share (EPS) and price/earnings (P/E) ratio for a sample of 19 publicly traded companies.   Which of the following statements is false?

Correlations: Stock Price, EPS, PE

 
    Stock    Price    EPS      
EPS        0.875          
PE        0.323    -0.111     

A.    EPS is the best predictor of stock price.
B.    The strongest correlation is between EPS and stock price.
C.    There is a weak negative association between PE and EPS.
D.    PE is the best predictor of stock price.
E.    The weakest correlation is between PE and EPS.


6.3. Check conditions for correlation and linear regression.
6.    A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month. Based on the scatterplot shown below, which of the following statements is true? 

A.    The quantitative variable condition is satisfied.
B.    The linearity condition is satisfied.
C.    There are no obvious outliers.
D.    All of the above.
E.    None of the above.

6.1. Analyze scatterplots and correlation coefficients.
7.    A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month. Based on the scatterplot, the linear relationship between number of pounds of coffee sold per week and price is


A.    strong and positive.
B.    strong and negative.
C.    weak and negative.
D.    weak and positive.
E.    nonexistent.

6.6. Write and interpret a linear regression equation.
8.    A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month.    Based on the data and summary statistics shown below, the slope of the estimated regression line that relates the response variable (monthly sales) to the predictor variable (price per pound) is

 
    PRICE PER POUND    POUNDS SOLD      
    $ 3.99    75      
    $ 5.99    60      
    $ 7.00    65      
    $ 12.00    45      
    $ 4.50    80      
    $ 7.50    70      
    $ 15.00    25      
    $ 10.00    35      
    $ 12.50    40      
    $ 8.99    50      
              
Mean    $ 8.75    54.50      
Standard Deviation    $ 3.63    18.33      
Correlation    -0.927         
 
A.    95.459.      
B.    .858.      
C.    -4.681.      
D.    -.858.      
E.    -8.999.     


6.6. Write and interpret a linear regression equation.
9.    A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month.    Based on the data and summary statistics shown below, the intercept of the estimated regression line that relates the response variable  (monthly sales) to the predictor variable (price per pound) is

 
    PRICE PER POUND    POUNDS SOLD      
    $ 3.99    75      
    $ 5.99    60      
    $ 7.00    65      
    $ 12.00    45      
    $ 4.50    80      
    $ 7.50    70      
    $ 15.00    25      
    $ 10.00    35      
    $ 12.50    40      
    $ 8.99    50      
              
Mean    $ 8.75    54.50      
Standard Deviation    $ 3.63    18.33      
Correlation    -0.927         
 
A.    95.459.      
B.    .858.      
C.    -4.684.      
D.    -.858.      
E.    -8.999.     

6.9. Interpret the value of correlation coefficients and squared correlations.
10.    A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month.    Based on the summary statistics shown below, what percent of the variability in the number of pounds of coffee sold per week can be explained by price?

 
Mean    $ 8.75    54.50      
Standard Deviation    $ 3.63    18.33      
Correlation    -0.927         

A. 95.47%
B. 100%
C.  85.9%
D. 55.6%
E. 4.68%

6.3. Analyze scatterplots and correlation coefficients.
1.    A consumer research group examining the relationship between the price of meat (per pound) and fat content (in grams) gathered data that produced the following scatterplot.
If the point in the lower left hand corner (2 grams of fat; $3.00 per pound) is removed, the correlation would most likely


A.    remain the same.
B.    become positive.
C.    become weaker negative.
D.    become stronger negative.
E.    become zero.

6.5. Interpret a linear regression equation and use it to make a prediction.
2.    Data were collected on monthly sales revenues (in $1,000s) and monthly advertising expenditures ($100s) for a sample of drug stores.  The regression line relating revenues
(Y) to advertising expenditure (X) is estimated to be yˆ = -48.3 + 9.00x . The correct interpretation of the slope is that for each additional

A.    $1 spent on advertising, predicted sales revenue increases by $9,000.
B.    $100 spent on advertising, predicted sales revenue increases by $9,000.
C.    $100 spent on advertising, predicted sales revenue decreases by $9,000.
D.    $1,000 in sales revenue, advertising expenditures decrease by $48.30.
E.    $100 in sales revenue, advertising expenditures decrease by $48.30.


6.5. Interpret a linear regression equation and use it to make a prediction.
3.    Data were collected on monthly sales revenues (in $1,000s) and monthly advertising expenditures ($100s) for a sample of drug stores.  The regression line relating revenues
(Y) to advertising expenditure (X) is estimated to be yˆ = -48.3 + 9.00x . The predicted sales revenue for a month in which $1,000 was spent on advertising is

 
A.    $50,000.      
B.    $851.70.      
C.    $8,951.70.      
D.    $41,700.      
E.    $90,000.     

6.8. Interpret a linear regression equation and use it to make a prediction.
4.    A company studying the productivity of its employees on a new information system was interested in determining if the age (X) of data entry operators influenced the number of completed entries made per hour (Y). The regression equation is yˆ = 14.374 - 0.145x .
Suppose the actual completed entries per hour for an operator who is 35 years old was 8. The residual is

A. -1.3
B.  2.6
C.  -3.5
D. 1.3
E. -2.2

6.6. Understand the relationship between the correlation and the regression line.
5.    A company studying the productivity of their employees on a new information system was interested in determining if the age (X) of data entry operators influenced the number
of completed entries made per hour (Y). The regression equation is
yˆ = 14.374 - 0.145x .
If sx=14.04 and sy=2.61, then the correlation coefficient between age and productivity is

 
A.    .779      
B.    -.236      
C.    .575      
D.    -.929      
E.    -.779     

6.6. Understand the relationship between the correlation and the regression line.
6.    Suppose the correlation, r, between two variables x and y is -0.44. What would you predict about a y value if the x value is 2 standard deviations above its mean?

A.    It will be .88 standard deviations below its mean.
B.    It will be .88 standard deviations above its mean.
C.    It will be 2 standard deviations below its mean.
D.    It will be .44 standard deviations below its mean.
E.    It will be .44 standard deviations above its mean.


6.9. Interpret the value of correlations coefficients and squared correlations.
7.    Suppose the correlation, r, between two variables x and y is -0.44. What percentage of the variability in y cannot be explained by x?

A. 19%
B. 44%
C.  81%
D. 88%
E. 12%

6.8. Analyze residuals.
8.    Linear regression was used to describe the trend in world population over time. Below is a plot of the residuals versus predicted values. What does the plot of residuals suggest?
 
A.    An outlier is present in the data set.
B.    The linearity condition is not satisfied.
C.    A high leverage point is present in the data set.
D.    The data are not normal.
E.    The equal spread condition is not satisfied.


6.8. Analyze residuals.
9.    Based on the following residual plot, which condition / assumption for linear regression is not satisfied?
 

A.    Linearity.
B.    Quantitative Variables.
C.    Equal Spread.
D.    Outlier.
E.    None of the above; all conditions are satisfied.

6.3. Analyze scatterplots and correlation coefficients.
10.    For the scatterplot shown below, the likely correlation coefficient is



A. +0.35
B.  +0.90
C. +0.77
D. -0.89
E. -1.00