Business Statistics (Donnelly)
Chapter 1 An Introduction to Business Statistics
1) Statistics is the mathematical science that deals with the collection, analysis, and presentation
of data–data that can then be used as a basis for inference and induction.
Answer: TRUE
Diff: 1
Keywords: introduction to statistics
Objective: 1.1.1
2) Business statistics are statistics applied to the business world in an effort to improve people's
decision making in fields such as marketing research, operations, finance, and advertising.
Answer: TRUE
Diff: 1
Keywords: introduction to statistics
Objective: 1.1.1
3) Information is the basic foundation for the field of statistics and can be defined as the value
assigned to a specific observation or measurement.
Answer: FALSE
Diff: 1
Keywords: data
Objective: 1.2.1
4) One of the major reasons to use statistics is to transform data into information.
Answer: TRUE
Diff: 1
Keywords: introduction to statistics
Objective: 1.2.1
5) An employee records the number of customers that arrive at a retail store today. This is an
example of collecting information.
Answer: FALSE
Diff: 2
Keywords: data
Objective: 1.2.1
6) Primary data is data collected by the person or organization that eventually uses the data.
Answer: TRUE
Diff: 1
Keywords: primary data
Objective: 1.2.1
1-1
,1-2 Chapter 1
7) Asking customers at the shopping mall about their voting intentions in the upcoming political
election is an example of secondary data.
Answer: FALSE
Diff: 1
Keywords: primary data
Objective: 1.2.1
8) Analyzing unemployment data from the Bureau of Labor Statistics is an example of using
secondary data.
Answer: TRUE
Diff: 1
Keywords: secondary data
Objective: 1.2.1
9) A hotel employee asks customers who are checking out to rate their satisfaction on a scale of
1-10. This is an example of collecting primary data.
Answer: TRUE
Diff: 1
Keywords: primary data
Objective: 1.2.1
10) Analyzing snowfall amounts in New York over the past 100 years to help predict future
weather patterns is an example of using primary data.
Answer: FALSE
Diff: 1
Keywords: secondary data
Objective: 1.2.1
11) Bias can occur in a survey when a question is stated in a way that encourages or leads a
respondent to a particular answer.
Answer: TRUE
Diff: 1
Keywords: survey, bias
Objective: 1.2.1
12) A restaurant manager randomly selects tables at which customers have just been seated and
records the amount of time it takes for the wait staff to greet these customers. This is an example
of an experiment being used to collect data.
Answer: FALSE
Diff: 1
Keywords: direct observation
Objective: 1.2.1
, An Introduction to Business Statistics 1-3
13) A marketing research employee randomly selects adults in a shopping mall and asks them
what type of car that they drive. This is an example of using direct observation to collect data.
Answer: FALSE
Diff: 1
Keywords: surveys
Objective: 1.2.1
14) A manager of an electronics store would like to investigate the impact that price has on the
demand for laptop computers. Each week, the price of a Dell laptop is adjusted and the demand
for each week is recorded. This is an example of an experiment being used to collect data.
Answer: TRUE
Diff: 1
Keywords: experiments
Objective: 1.2.1
15) To help ensure good questionnaire design, it is recommended that a survey is tested on a
small group of respondents before releasing it to the actual participants.
Answer: TRUE
Diff: 1
Keywords: surveys
Objective: 1.2.1
16) It is recommended that personal demographic questions be placed at the beginning of the
questionnaire because respondents find these questions easy to answer.
Answer: FALSE
Diff: 2
Keywords: surveys
Objective: 1.2.1
17) Interval data deals strictly with qualitative data assigned to predetermined categories.
Answer: FALSE
Diff: 1
Keywords: nominal data
Objective: 1.2.1
18) Education level is an example of nominal data.
Answer: TRUE
Diff: 1
Keywords: nominal data
Objective: 1.2.1
, 1-4 Chapter 1
19) Nominal data has all the features of interval data with the added benefit of having a true zero
point.
Answer: FALSE
Diff: 1
Keywords: ratio data
Objective: 1.2.1
20) The interval measurement level is considered quantitative data.
Answer: TRUE
Diff: 1
Keywords: interval data
Objective: 1.2.1
21) The ratio measurement level is considered qualitative data.
Answer: FALSE
Diff: 1
Keywords: ratio data
Objective: 1.2.1
22) The number of pages in your business statistics textbook is an example of quantitative data.
Answer: TRUE
Diff: 1
Keywords: quantitative data
Objective: 1.2.1
23) Your cell phone number is an example of quantitative data.
Answer: FALSE
Diff: 2
Keywords: qualitative data
Objective: 1.2.1
24) A respondent to a survey indicates that she drives a Ford Taurus. This is an example of
qualitative data.
Answer: TRUE
Diff: 1
Keywords: qualitative data
Objective: 1.2.1
25) A respondent to a survey indicates that he has lived in his current residence for three years.
This is an example of qualitative data.
Answer: FALSE
Diff: 1
Keywords: qualitative data
Objective: 1.2.1
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