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Applied Statistics in Business and Economics 5th Edition by Doane
Chapter 02
Data Collection
True / False Questions
1.  Categorical data have values that are described by words rather than numbers.
True False 
2.  Numerical data can be either discrete or continuous.
True False 
3.  Categorical data are also referred to as nominal or qualitative data.
True False 
4.  The number of checks processed at a bank in a day is an example of categorical data.
True False 
5.  The number of planes per day that land at an airport is an example of discrete data.
True False 
6.  The weight of a bag of dog food is an example of discrete data.
True False 
7.  In last years annual report, Thompson Distributors indicated that it had 12 regional warehouses. This is an example of ordinal level data.
True False 
8.  Nominal data refer to data that can be ordered in a natural way.
True False 
9.  This year, Oxnard University produced two football AllAmericans. This is an example of continuous data.
True False 
10.  The type of statistical test that we can perform is independent of the level of measurement of the variable of interest.
True False 
11.  Your weight recorded at your annual physical would not be ratio data, because you cannot have zero weight.
True False 
12.  The level of measurement for categorical data is nominal.
True False 
13.  Temperature measured in degrees Fahrenheit is an example of interval data.
True False 
14.  The closing price of a stock is an example of ratio data.
True False 
15.  The Statistical Abstract of the United States is a huge annual compendium of data for the United States, and it is available online free of charge.
True False 
16.  Ordinal data can be treated as if it were nominal data but not vice versa.
True False 
17.  Responses on a sevenpoint Likert scale are usually treated as ratio data.
True False 
18.  Likert scales are especially important in opinion polls and marketing surveys.
True False 
19.  Ordinal data are data that can be ranked based on some natural characteristic of the items.
True False 
20.  Ratio data are distinguished from interval data by the presence of a zero reference point.
True False 
21.  It is better to attempt a census of a large population instead of relying on a sample.
True False 
22.  Judgment sampling and convenience sampling are nonrandom sampling techniques.
True False 
23.  A problem with judgment sampling is that the sample may not reflect the population.
True False 
24.  When the population is large, a sample estimate is usually preferable to a census.
True False 
25.  Sampling error is avoidable by choosing the sample scientifically.
True False 
26.  A sampling frame is used to identify the target population in a statistical study.
True False 
27.  By taking a systematic sample, in which we select every 50^{th} shopper arriving at a specific store, we are approximating a random sample of shoppers.
True False 
28.  A worker collecting data from every other shopper who leaves a store is taking a simple random sample of customer opinion.
True False 
29.  Creating a list of people by taking the third name listed on every 10^{th} page of the phone book is an example of convenience sampling.
True False 
30.  Internet surveys posted on popular websites have no bias since anyone can reply.
True False 
31.  Analysis of monthbymonth changes in stock market prices during the most recent recession would require the use of time series data.
True False 
32.  A cluster sample is a type of stratified sample that is based on geographical location.
True False 
33.  An advantage of a systematic sample is that no list of enumerated data items is required.
True False 
34.  Telephone surveys often have a low response rate and fail to reach the desired population.
True False 
35.  Mail surveys are attractive because of their high response rates.
True False 
36.  A problem with convenience sampling is that the target population is not well defined.
True False 
37.  If you randomly sample 50 students about their favorite places to eat, the data collected would be referred to as crosssectional data.
True False 
38.  The number of FedEx shipping centers in each of 50 cities would be ordinal level data.
True False 
39.  Internet surveys posted on popular websites such as MSN.com suffer from nonresponse bias.
True False 
40.  Different variables are usually shown as columns of a multivariate data set.
True False 
41.  Each row in a multivariate data matrix is an observation (e.g., an individual response).
True False 
42.  A bivariate data set has only two observations on a variable.
True False 
43.  Running times for 3,000 runners in a 5k race would be a multivariate data set.
True False 
44.  Running times for 500 runners in a 5k race would be a univariate data set.
True False 
45.  A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set.
True False 
46.  The daily closing price of Apple stock over the past month would be a time series.
True False 
47.  The number of words on 50 randomly chosen textbook pages would be crosssectional data.
True False 
48.  A Likert scale with an even number of scale points between Strongly Agree and Strongly Disagree is intended to prevent neutral choices.
True False 
49.  Private statistical databases (e.g., CRSP) are usually free.
True False 
Multiple Choice Questions
50.  An investment firm rates bonds for AardCo Inc. as B+, while bonds of Deva Corp. are rated AA. Which level of measurement would be appropriate for such data?

51.  Which variable is least likely to be regarded as ratio data?

52.  Which of the following is numerical data?

53.  Measurements from a sample are called:

54.  Quantitative variables use which two levels of measurement?

55.  Temperature in degrees Fahrenheit is an example of a(n) __________ variable.

56.  Using a sample to make generalizations about an aspect of a population is called:

57.  Your telephone area code is an example of a(n) ____________ variable.

58.  Which is least likely to be regarded as a ratio variable?

59.  Automobile exhaust emission of CO_{2} (milligrams per mile) is ____________ data.

60.  Your rating of the food served at a local restaurant using a threepoint scale of 0 = gross, 1 = decent, 2 = yummy is ___________ data.

61.  The number of passengers bumped on a particular airline flight is ____________ data.

62.  Which should not be regarded as a continuous random variable?

63.  Which of the following is not true?

64.  Which of the following is true?

65.  Which statement is correct?

66.  A Likert scale:

67.  Which is most nearly correct regarding sampling error?

68.  Which statement is false?

69.  Judgment sampling is sometimes preferred over random sampling, for example, when:

70.  An advantage of convenience samples is that:

71.  Before deciding whether to assess heavy fines against noisy airlines, which sampling method would the Federal Aviation Administration probably use to measure the peak noise from departing jets as measured by a groundlevel observer at a point one mile from the end of the departure runway?

72.  Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by picking every student who was wearing red that day. Which kind of sample is this?

73.  Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every 15^{th} folder. Which sampling method is this?

74.  Which of the following is not a likely reason for sampling?

75.  Comparing a census of a large population to a sample drawn from it, we expect that the:

76.  A stratified sample is sometimes recommended when:

77.  A random sample is one in which the:

78.  An advantage of convenience samples over random samples is that:

79.  To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its customers by age, gender, and location. Which is an advantage of this type of sampling, as opposed to other sampling methods?

80.  An accounting professor wishing to know how many MBA students would take a summer elective in international accounting did a survey of the class she was teaching. Which kind of sample is this?

81.  A binary variable (also called a dichotomous variable or dummy variable) has:

82.  A population has groups that have a small amount of variation within them, but large variation among or between the groups themselves. The proper sampling technique is:

83.  A manager chose two people from his team of eight to give an oral presentation because she felt they were representative of the whole teams views. What sampling technique did she use in choosing these two people?

84.  Sampling bias can best be reduced by:

85.  A sampling technique used when groups are defined by their geographical location is:

86.  If we choose 500 random numbers using Excels function =RANDBETWEEN(1,99), we would most likely find that:

87.  A problem with nonrandom sampling is that:

88.  From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is an example of:

89.  Which of the following is a correct statement?

90.  Which of the following is false?

91.  When we are choosing a random sample and we do not place chosen units back into the population, we are:

92.  Which method is likely to be used by a journalism student who is casually surveying opinions of students about the universitys cafeteria food for an article that she is writing?

93.  Which of the following is false?

94.  Which is a time series variable?

95.  An observation in a data set would refer to:

96.  A multivariate data set contains:

97.  The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra hospital stay that occurs when heart surgery patients experience postoperative atrial fibrillation. They divide the United States into nine regions. In each region, hospitals are selected at random within each hospital size group (small, medium, large). In each hospital, heart surgery patients are sampled according to known percentages by age group (under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines which sampling methods?

98.  Which statement is correct?

99.  Which is a categorical variable?

100.  Which is a discrete variable?

101.  A section of the population we have targeted for analysis is:

102.  Which is not a time series variable?

103.  A good Likert scale may not have:

104.  A Likert scale with an odd number of scale points between Strongly Agree and Strongly Disagree:

105.  A Likert scale with an even number of scale points between Strongly Agree and Strongly Disagree:

106.  Which statement is correct?

107.  Which statement is correct?

Short Answer Questions
108.  Which survey method would you recommend to survey opinions of airline passengers about the cleanliness of the restrooms in the Detroit airport? Why not the others?

109.  What kind of sampling method would you suggest in order to tabulate the number of formulas on a typical page of the DoaneSeward textbook? Defend your choice.

110.  How would you design a study to see whether drivers using handsfree cell phones are distracted enough to slow their reactions to emergency situations? How would you collect data?

Chapter 06
Discrete Probability Distributions
True / False Questions
1.  A random variable is a function or rule that assigns a numerical value to each outcome in the sample space of a stochastic (chance) experiment.
True False 
2.  A discrete random variable has a countable number of distinct values.
True False 
3.  The expected value of a discrete random variable E(X) is the sum of all X values weighted by their respective probabilities.
True False 
4.  A discrete distribution can be described by its probability density function (PDF) or by its cumulative distribution function (CDF).
True False 
5.  A random variable may be discrete or continuous, but not both.
True False 
6.  To describe the number of blemishes per sheet of white bond paper, we would use a discrete uniform distribution.
True False 
7.  The outcomes for the sum of two dice can be described as a discrete uniform distribution.
True False 
8.  A discrete binomial distribution is skewed right when > .50.
True False 
9.  When = .70 the discrete binomial distribution is negatively skewed.
True False 
10.  The Poisson distribution describes the number of occurrences within a randomly chosen unit of time or space.
True False 
11.  The Poisson distribution can be skewed either left or right, depending on .
True False 
12.  Although the shape of the Poisson distribution is positively skewed, it becomes more nearly symmetric as its mean becomes larger.
True False 
13.  As a rule of thumb, the Poisson distribution can be used to approximate a binomial distribution when n 20 and .05.
True False 
14.  The hypergeometric distribution is skewed right.
True False 
15.  The hypergeometric distribution assumes that the probability of a success remains the same from one trial to the next.
True False 
16.  The hypergeometric distribution is not applicable if sampling is done with replacement.
True False 
17.  As a rule of thumb, the binomial distribution can be used to approximate the hypergeometric distribution whenever the population is at least 20 times as large as the sample.
True False 
18.  An example of a geometric random variable is the number of pine trees with pine beetle infestation in a random sample of 15 pine trees in Colorado.
True False 
19.  Calculating the probability of getting three aces in a hand of five cards dealt from a deck of 52 cards would require the use of a hypergeometric distribution.
True False 
20.  The Poisson distribution is appropriate to describe the number of babies born in a small hospital on a given day.
True False 
21.  The gender (M, F) of a randomly chosen unborn child is a Bernoulli event.
True False 
22.  The Poisson distribution has only one parameter.
True False 
23.  The standard deviation of a Poisson random variable is the square root of its mean.
True False 
24.  Customer arrivals per unit of time would tend to follow a binomial distribution.
True False 
25.  The two outcomes (success, failure) in the Bernoulli model are equally likely.
True False 
26.  The expected value of a random variable is its mean.
True False 
Multiple Choice Questions
27.  A discrete probability distribution:

28.  The number of male babies in a sample of 10 randomly chosen babies is a:

29.  A discrete random variable:

30.  Which is not a discrete random variable?

31.  Which is not a discrete random variable?

32.  Which statement is incorrect?

33.  The random variable X is the number of shots it takes before you make the first free throw in basketball. Assuming the probability of success (making a free throw) is constant from trial to trial, what type of distribution does X follow?

34.  Which probability model is most nearly appropriate to desc
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