Multiple choice

Answers are given in green color

1.1 The members of each basketball team wear numbers on the back of their
jerseys. What scale of measurement are these numbers considered?

A. Nominal 
B. Ordinal
C. Interval
D. Ratio
E. None of the above

1.2 Respondents were asked, “Do you now earn more than or less than you
did five years ago?” What is this level of measurement?

A. Interval
B. Ratio
C. Nominal
D. Ordinal 
E. None of the above

1-3 What type of data is the projected return on an investment?

A. Qualitative
B. Continuous 
C. Attribute
D. Discrete
E. None of the above

1-4 The gathering, organizing, analyzing, and interpreting data is called

A. statistics. 
B. descriptive statistics.
C. inferential statistics.
D. levels of measurement.
E. None of the above.

1-5 Which of the following is an example of attribute data?

A. Number of children in a family

B. Weight of a person
C. Color of ink in a pen
D. Miles between oil changes
E. None of the above
1-6 Which one of the following is NOT an example of discrete data?

A. Number of households watching the Home Improvement.

B. Number of employees reporting in sick.
C. Number of miles between New York City and Chicago. 
D. Number of members of the Dobbs Ferry-Irvington Lions Club.
E. Number of family members.

2-1: Monthly commissions of first-year insurance brokers are $1,270, $1,310,

$1,680, $1,380, $1,410, $1,570, $1,180 and $1,420. These figures are
referred to as:

A. histogram.
B. raw data. 
C. frequency distribution.
D. ogive.
E. none of the above.

2-2: The monthly salaries of a sample of 100 employees were rounded to the
nearest ten dollars. They ranged from a low of $1,040 to a high of
$1,720. If we want to condense the data into seven classes, what is the
most convenient class interval?

A. $ 50
B. $100 
C. $150
D. $200
E. None of the above

2-3: For the following distribution of heights, what are the limits for the class
with the greatest frequency?
Heights 60” up to 65” 65” up to 70” 70” up to 75”
Number 10 70 20

A. 64 and up to 70
B. 65 and 69 
C. 65 and up to 70
D. 69.5 and 74.5
E. None of the above

2-4: Why are unequal class intervals sometimes used in a frequency

distribution?
 A. To avoid a large number of empty classes 
B. For the sake of variety in presenting the data
C. To make the class frequencies smaller
D. To avoid the need for midpoints
E. None of the above

2-5 A sample distribution of hourly earnings in Paul’s Cookie Factory is:

Hourly Earnings $6 up to $9 $9 up to $12 $12 up to $15
Numbers 16 42 10
The limits of the class with the smallest frequency are:

A. $ 6.00 and $9.00

B. $12.00 and up to $14.00
C. $11.75 and $14.25
D. $12.00 and up to $15.00 
E. None of the above

3-1 Which measures of central tendency are not affected by extremely low or
extremely high values?

A. Mean and median

B. Mean and mode
C. Mode and median 
D. Geometric mean and mean
E. None of the above

3-2 Which one of the following is referred to as the population mean?

A. Statistic
B. m
C. Sample
D. [img src="@3339559"]
E. None of the above 
3-3 What is the median of 26, 30, 24, 32, 32, 31, 27 and 29?

A. 32
B. 29
C. 30
D. 29.5 
E. None of the above

3-4 The U.S. Federal Aviation Administration reported that passenger evenues
on international flights increased from $528 million in 1972 to $5,100
 million in 1995. What is the geometric mean annual percent increase in
international passenger revenues?

A. 10.4 
B. 27.9
C. 103.6
D. 9.96
E. None of the above

4.1 What is a disadvantage of the range as a measure of dispersion?

A. Based on only two observations 

B. Can be distorted by a large mean
C. Not in the same units as the original data
D. Has no disadvantage
E. None of the above

4.2 What disadvantage(s) are there of the mean deviation?

A. Based on only two observations

B. Based on deviations from the mean
C. Uses absolute values, which are difficult to manipulate
D. All of the above
E. None of the above 

4.3 Which of the following measures of dispersion are based on deviations

from the mean?

A. Variance
B. Standard deviation
C. Mean deviation
D. All of the above 
E. None of the above

4.4 What is the relationship between the variance and the standard
deviation?

A. Variance is the square root of the standard deviation

B. Variance is the square of the standard deviation 
C. Variance is twice the standard deviation
D. No constant relationship between the variance and the standard
deviation
 E. None of the above

4.5 According to Chebyshev’s Theorem, what percent of the observations lie

within plus and minus 1.75 standard deviations of the mean?

A. 56%
B. 95%
C. 67% 
D. Cannot compute because it depends on the shape of the
distribution
E. None of the above

4-6 A large oil company is studying the number of gallons of gasoline

purchased per customer at self-service pumps. The mean number of
gallons is 10.0 with a standard deviation of 3.0 gallons. The median is
10.75 gallons. What is the coefficient of skewness?

A. –1.00
B. –0.75 
C. +0.75
D. +1.00
E. None of the above

5-1 Routine physical examinations are conducted annually as part of a health

service program for the employees. It was discovered that 8% of the
employees needed corrective shoes, 15% needed major dental work and
3% needed both corrective shoes and major dental work. What is the
probability that an employee selected at random will need either
corrective shoes or major dental work?

A. 0.20 
B. 0.25
C. 0.50
D. 1.00
E. None of the above

5.2 A survey of top executives revealed that 35% of them regularly read Time
magazine, 20% read Newsweek and 40% read U.S. News & World
Report. Ten percent read both Time and U.S. News & World Report. What
is the probability that a particular top executive reads either Time or U.S.
News & World Report regularly?
 A. 0.85
B. 0.06
C. 1.00
D. 0.65 
E. None of the above

5.3 A study by the National Park Service revealed that 50% of the vacationers
going to the Rocky Mountain region visit Yellowstone Park, 40% visit the
Tetons and 35% visit both. What is the probability that a vacationer will
visit at least one of these magnificent attractions?

A. 0.95
B. 0.35
C. 0.55 
D. 0.05
E. None of the above

5.4 A tire manufacturer advertises that “the average life of our new all-
season radial tire is 50,000 miles. An immediate adjustment will be made
on any tire that does not last 50,000 miles.” You purchased four of these
tires. What is the probability that all four tires will wear out before
traveling 50,000 miles?

A. 1/10, or 0.10
B. ¼, or 0.25
C. 1/64, or 0.0156
D. 1/16, or 0.0625 
E. None of the above

5-5 A sales representative calls on four hospitals in Westchester County. It is

immaterial what order he calls on them. How many ways can he organize
his calls?

A. 4
B. 24 
C. 120
D. 37
E. None of the above
5.5 There are 10 rolls of film in a box and 3 are defective. Two rolls are to be
selected, one after the other. What is the probability of selecting a
defective roll followed by another defective roll?

A. 1/2, or 0.50
B. 1/4, or 0.25
C. 1/120, or about 0.0083
D. 1/15, or about 0.07 
E. None of the above

5.6 Calculating the probability of an outcome is useful in the following except

A. inferential statistics.
B. descriptive statistics.
C. predicting a future outcome.
D. relative frequency.
E. none of the above. 
6.1 The probabilities and the number of automobiles lined up at a Lakeside
Olds at opening time (7:30 a.m.) for service are:
Number Probability
1 0.05
2 0.30
3 0.40
4 0.25
On a typical day, how many automobiles should Lakeside Olds expect to
be lined up at opening?

A. 10.00
B. 1.00
C. 2.85 
D. 1.96
E. None of the above

6.2 An insurance agent has appointments with four prospective clients

tomorrow. From past experience the agent knows that the probability of
making a sale on any appointment is 1 out of 5. Using the rules of
probability, what is the likelihood that the agent will sell a policy to 3 of
the 4 prospective clients?

A. 0.250
B. 0.500
C. 0.410
D. 0.026 
 E. None of the above

6.3 Sweetwater & Associates write weekend trip insurance at a very nominal
charge. Records show that the probability that a motorist will have an
accident during the weekend and file a claim is 0.0005. Suppose they
wrote 400 policies for the coming weekend, what is the probability that
exactly two claims will be filed?

A. 0.8187
B. 0.2500
C. 0.0164 
D. 0.0001
F. None of the above

6-4 What is a listing of all possible outcomes of an experiment and their

corresponding probability of occurrence called?

A. Random variable
B. Probability distribution 
C. Subjective probability
D. Frequency distribution
E. None of the above

6.4 Which one of the following is NOT a condition of the binomial distribution?

A. Independent trials
B. Only two outcomes
C. Probability of success remains constant from trial to trial
D. At least 10 observations 
E. None of the above

6-6 Which is true for a binomial distribution?

A. There are three or more possible outcomes

B. Probability of success remains the same from trial to trial 
C. Value of p is equal to 1.50
D. All of the above are correct
E. None of the above are correct

6-7 What kind of distribution are the binomial and Poisson distributions?

A. Discrete 
B. Continuous
 C. Both discrete and continuous
D. Neither discrete or continuous

6.8 The weight of an offensive linesman may be 210 pounds, 210.1 pounds,
210.13 pounds or 210.137 pounds depending on the accuracy of the
scale. What is this an illustration of?

A. Continuous random variable 

B. Discrete random variable
C. Complement rule
D. All of the above
E. None of the above

7-1 Which of the following is NOT true regarding the normal distribution?

A. Mean, median and mode are all equal

B. It has a single peak
C. It is symmetrical

D. The points of the curve meet the X-axis at z = –3 and z = 3 

E. None of the above

7-2 For the normal distribution, the mean plus and minus 1.96 standard
deviations will include about what percent of the observations?

A. 50%
B. 99.7%
C. 95% 
D. 68%
E. None of the above

7-3 Which of the following is NOT a characteristic of the normal probability

distribution?

A. Positively-skewed 
B. Bell-shaped
C. Symmetrical
D. Asymptotic
E. All of the above

7-4 The mean of a normally distributed group of weekly incomes of a large

group of executives is $1,000 and the standard deviation is $100. What is
the z-score for an income of $1,100?
 A. 1.00 
B. 2.00
C. 1.683
D. -0.90
E. None of the above

7-5 Which of the following is true in a normal distribution?

A. Mean equals the mode and the median

B. Mode equals the median
C. Mean divides the distribution into two equal parts
D. All of the above are correct 
E. None of the above

7-6 The standard normal probability distribution is one which has:

A. A mean of 1 and any standard deviation

B. Any mean and a standard deviation of 1
C. A mean of 0 and any standard deviation
D. A mean of 0 and a standard deviation of 1 
E. None of the above are correct

8-1 What is the difference between a sample mean and the population mean
called?

A. Standard error of the mean

B. Sampling error
C. Interval estimate
D. Point estimate
E. None of the above 
8-2 What sample statistic is used to estimate a population value?

A. Parameter
B. Sampling error
C. Point estimate 
D. Interval estimate
E. None of the above

8-3 Suppose we select every fifth invoice in a file. What type of sampling is
this?
 A. Random
B. Cluster
C. Stratified
D. Systematic 
F. None of the above

8-4 If the level of confidence is lowered from 95% to 90%, but the allowable
error and the standard deviation remain the same, what happens to the
required sample size?

A. Increases
B. Decreases 
C. Remains unchanged
D. None of the above

8-5 In a sample of 2,000 persons, 1,600 favored more strict environmental

protection measures. What is the estimated population proportion?

A. 0.16 or 16%
B. 0.20 or 20%
C. 0.80 or 80% 
D. 0.82 or 82%
E. None of the above

9-1 What value does the null hypothesis make a claim about?

A. Population parameter 
B. Sample statistic
C. Sample mean
D. Type II error
E. None of the above

9-2 Test at the 0.01 level the statement that 55% of those families who plan
to purchase a vacation residence in Florida want a condominium. The null
hypothesis is p = 0.55 and the alternate is p is not equal to 0.55. A
random sample of 400 families who planned to buy a vacation residence
revealed that 228 families want a condominium. What decision should be
made regarding the null hypothesis?
 A. Do not reject it 
B. Reject it
C. Cannot accept nor reject it based on the information given
D. None of the above

9-3 What is the level of significance?

A. Probability of a Type II error

B. Probability of a Type I error 
C. z-value of 1.96
D. Beta error
E. None of the above

9-4 Suppose we are testing the difference between two proportions at the
0.05 level of significance. If the computed z is –1.07, what is our decision?

A. Reject the null hypothesis

B. Do not reject the null hypothesis 
C. Take a larger sample
D. Reserve judgment
E. None of the above

9-5 What do we call the conditions under which the null hypothesis is NOT
rejected?

A. Decision rule
B. Test statistic
C. Alternate hypothesis
D. Critical value
E. None of the above 
9-6 What is a Type II error?

A. Accepting a false null hypothesis 

B. Rejecting a false null hypothesis
C. Accepting a false alternate hypothesis
D. Rejecting a false alternate hypothesis
F. None of the above

9-7 If the alternate hypothesis states that m does not equal 4,000, what is the
rejection region for the hypothesis test?
A. Both tails 
B. Lower or left tail
C. Upper or right tail
D. Center
E. None of the above