Business Uses Statistics in Decision Making

1.

Virtually every area of business uses statistics in decision making.

Correct! Virtually every area of business uses statistics in decision making.

2.

Parameters are usually denoted by Greek letters, while a statistic is usually denoted by Roman letters.

Incorrect. Parameters are usually denoted by Greek letters, while a statistic is usually denoted by Roman letters.

3.

A measurement is when a standard process is used to assign numbers to particular attributes or characteristics of a variable.

Correct! A measurement is when a standard process is used to assign numbers to particular attributes or characteristics of a variable.

4.

Numerical data in which the numbers are used only to classify or categorize the observations are an example of interval data.

Incorrect.

5.

The highest level of data measurement is the ratio-level measurement.

Correct! The highest level of data measurement is the ratio-level measurement.

6.

Statistical techniques can be separated into categories: parametric statistics and nonparametric statistics.

Incorrect. Statistical techniques can be separated into categories: parametric statistics and nonparametric statistics.

7.

Nominal- and Ordinal-level data are called nonmetric data.

8.

Metric data is lower level data than the nonmetric data

9.

Since statistics deals with primarily with facts and figures, ethical considerations do not play any role in statistical analysis.

Correct! Ethical considerations do play a role in statistical analysis.

10.

Common uses of the word statistics include all of the following except _________.

Incorrect. Common uses of the word statistics does not include autobiographies.

11.

The study of statistics can be subdivided in which of the following ways?

Correct! The study of statistics can be subdivided into descriptive and inferential statistics.

12.

Which of the following descriptive measure is not a statistic?

Incorrect. Population mean is not a statistic.

13.

The study of statistics is generally divided into two branches called descriptive statistics and __________.

Incorrect. The study of statistics is divided into descriptive and inferential statistics.

14.

To study the impact of advertising on various market segments, market researchers use __________.

Incorrect. Researchers use inferential statistics to study the impact of advertising on market segments.

15.

Researchers want to study whether women or men are more adept at remembering where they leave misplaced items (such as credit cards, purse). They collected 500 women and men to participate a study in which each person placed 10 common objects in a 12-room “virtual” house represented on a computer screen. 30 minutes later, the participants were asked to recall where they put each of the items, and for each subject, the answer was recorded to be “yes” or “no”. In this study, the researchers used:

Incorrect. In this study the researchers used inferential statistics.

16.

A small portion or a subset of the population on which data is collected for conducting statistical analysis is called __________.

Correct! A sample is a subset of the population on which data is collected for purposes of statistical analysis.

17.

The activity or the process of collecting the data on the population is called __________.

Correct! A census is the activity or process of collecting data on the population.

18.

One investigating company tracked all credit card purchases during 2012 and measured two variables: (1) the type of credit card used (VISA, MasterCard, American Express, or Discover), and (2) the amount (in dollars) of each purchase. The data set collected represents __________.

Incorrect. The collection of all credit card purchases during 2012 represents a population.

19.

Researchers want to investigate the relationship between the voters' income level and their voting tendencies in the United States. They took a random sample from each state and asked them about their tendency of voting. What is the population in this problem?

Correct! The population in this example would be all of the voters in the U.S.

20.

From the above problem, what is the sample?

Correct! The sample in this example would be all the voters collected by the researchers from each state.

21.

When you use the data gathered from a group to describe or reach conclusions about that same group, you are performing __________.

Incorrect. Descriptive statistics include data gathered from a group to describe that group.

22.

When you use the data gathered from a sample to generate statistics to reach conclusions about the population from which the sample was taken, you are performing __________.

Incorrect. Inferential statistics are used to reach conclusions about a population based on data from a sample.

23.

A descriptive measure of a population is called __________.

Correct! A parameter is a descriptive measure of a population.

24.

A descriptive measure of a sample is called __________.

Incorrect.

25.

To study the impact of advertising on various market segments, a soft drink company creates an advertisement depicting a dispensing machine that talks to the buyer, and market researchers measure the impact of the new advertisement on various age group and they use __________.

Correct!

26.

Which of the following statements about population parameters is most appropriate?

Correct!

27.

A company wants to learn the customers' purchase habits of buying certain products. This company did a survey about a random 1000 customers, who were asked about the times they purchased the certain products within one month. Then what is the data in this example:

Correct!

28.

Researchers often wish to measure consumers' satisfaction toward certain products and might ask consumers to specify their feelings as either "very dissatisfied," "somewhat dissatisfied," "somewhat satisfied," or "very satisfied." This is an example of what level of data?

Incorrect.

29.

Researchers often wish to know the color preference of consumers and might ask consumers to specify their favorite color, such as red, blue, yellow or purple. This is an example of what level of data?

Incorrect. Favorite color would be an example of a nominal level of data.

30.

What is the level of data corresponding to a military rank (Lieutenant, Captain, Major)?

Incorrect. Military titles (i.e. rank) represent an ordinal level of data.

31.

One investigating company tracked all credit card purchase during 2012 and measured two variables: (1) the type of credit card used (VISA, MasterCard, American Express, or Discover), and (2) the amount (in dollars) of each purchase. Identify the level of each variable measured.

Incorrect. The two variables are nominal level and interval level, respectively.

32.

Chemists need to measure the temperature when performing chemistry experiments. What is the level of the data of the heat measured in degrees centigrade?

Incorrect. Heat measured in degrees centigrade would be interval level data

33.

A score on a 15-point multiple choices quiz measuring knowledge of statistics is an example of a(n)

Incorrect. A numerical score on a multiple choice quiz is an example of ordinal data.

34.

Which level of data measurement allows the most or broadest application of statistical techniques?

Correct! Ratio level data allows for the broadest application of statistical techniques.

35.

Which of the following statements captures a key aspect of interval level data?

Incorrect. A key aspect of interval level data is that ratio data have an absolute zero.

36.

Which of the following type of data is the highest level of data measurement?

Incorrect. Ratio level data is the highest level of data measurement.

37.

Which of the following type of data is the lowest level of data measurement?

Incorrect. Nominal level data is the lowest level of data measurement.

38.

Parametric statistics require that data be __________.

Incorrect. Parametric statistics require data to be interval or ratio.

39.

Nonparametric statistics must be used if the data are __________.

Correct! Nonparametric statistics must be used if the data are nominal or ordinal.

40.

A study was conducted to investigate the effect of a coal-fired generating plant upon the water quality of a river. As part of an environmental impact study, fish were captured, tagged, and released. The following information was recorded for each fish:
sex(0=female, 1=male), length (cm), maturation (0=young, 1=adult), weight (g). The level of these data is:

Incorrect. The level of these data is: nominal, ratio, ordinal, ratio