Test Bank for Essentials of Modern Business Statistics with Microsoft® Excel®
9th Edition by Jeffrey Camm
Chapter 01 9e
Indicate the answer choice that best completes the statement or answers the question.
1. Which of the following variables uses the ratio scale of measurement?
a. Name of stock exchange
b. Time
c. SAT scores
d. Social security number
2. Which of the following is the process of using procedures from statistics and computer science to extract useful
information from extremely large databases?
a. Big data
b. Analytics
c. Data warehousing
d. Data mining
3. Which two scales of measurement can be either numeric or nonnumeric?
a. Nominal and ratio
b. Ordinal and interval
c. Interval and ordinal
d. Nominal and ordinal
4. Dr. Kurt Thearling, a leading practitioner in the field, defines data mining as “the _____ extraction of _____
information from databases."
a. thorough, insightful
b. timely, accurate
c. automated, predictive
d. intentional, useful
5. The average age in a sample of 90 students at City College is 20. From this sample, it can be concluded that the
average age of all the students at City College _____.
a. must be more than 20, as the population is always larger than the sample
b. must be less than 20, as the sample is only a part of the population
c. could not be 20
d. could be larger, smaller, or equal to 20
6. In a questionnaire, respondents are asked to mark their gender as Male, Female, Transgender MtoF, Transgender
FtoM, Non-binary, or Intersex. Gender is an example of which type of variable?
a. Categorical
b. Quantitative
c. Interval
d. Ratio
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Chapter 01 9e
7. A sample of five Fortune 500 companies showed the following revenues ($ millions): 7505.0, 2904.7, 7208.4,
6819.0, and 19500.0. Based on this information, which of the following statements is correct?
a. An estimate of the average revenue for all Fortune 500 companies is 8787.42 ($ millions).
b. The average revenue for all Fortune 500 companies is 8787.42 ($ millions).
c. Over half of all Fortune 500 companies earn at least 7208.4 ($ millions) in revenues.
d. If five other Fortune 500 companies were chosen, the average revenue would be 8787.42 ($ millions).
8. Statistical studies in which researchers do not control variables of interest are _____.
a. experimental studies
b. uncontrolled experimental studies
c. not of any value
d. observational studies
9. Data collected at the same, or approximately the same, point in time are considered which one of the following
types of data?
a. Time series
b. Static
c. Cross-sectional
d. One-dimensional
10. The process of analyzing sample data to draw conclusions about the characteristics of a population is called
_____.
a. descriptive statistics
b. statistical inference
c. data analysis
d. data summarization
11. The Department of Transportation of a city has noted that on average there are 14 accidents per day. The
average number of accidents is an example of _____.
a. descriptive statistics
b. statistical inference
c. a sample
d. a population
12. Which of the following is NOT an example of a firm that sells or leases business database services to clients?
a. Dun & Bradstreet
b. Bloomberg
c. U.S. Census Bureau
d. Dow Jones and Company
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Chapter 01 9e
13. What can be inferred about the population of all lithium batteries produced with Rogers Industries' new solid-
state technology based on the sample data showing an average battery life of 18.84 hours?
a. The population average battery life is exactly 18.84 hours.
b. The population average battery life is between 18.16 and 19.52 hours.
c. The population average battery life could be more or less than 18.84 hours.
d. The population average battery life is greater than 20 hours.
14. In an application for a credit card, potential customers are asked for their social security numbers. A social
security number is an example of a _____.
a. categorical variable
b. quantitative variable
c. categorical or quantitative variable, depending on how the respondents answered the question
d. ratio variable
15. In a recent study based upon an inspection of 500 homes in Metropolis, 300 were found to violate one or more
city codes. The manager's statement that 60% of Metropolis’s 3,000 homes are in violation of city codes is
_____.
a. an accurate statement
b. only an approximation, as it is based upon sample information
c. obviously wrong, as it is based upon a study of only 200 homes
d. wrong. All 3,000 homes need to be surveyed to make that statement
16. Which type of analytics encompasses the set of analytical techniques that describe what has happened in the
past?
a. Descriptive
b. Predictive
c. Prescriptive
d. Data
17. A statistics professor asked students in a class their ages. Based on this information, the professor states that the
average age of students in the university is 21 years. This is an example of _____.
a. a census
b. descriptive statistics
c. an experiment
d. statistical inference
18. What organization developed the report, “Ethical Guidelines for Statistical Practice”?
a. Ethics Committee for Statistical Practices
b. American Statistical Association
c. International Statistical Organization
d. Federal Bureau for Ethical Practices in Statistics
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Chapter 01 9e
19. Which type of data collection method gives the researcher the most control over variables of interest?
a. Using existing data sources
b. Conducting an observational study
c. Conducting a survey
d. Conducting an experiment
20. Which of the following is NOT an example of an existing source of data?
a. The Internet
b. Internal company records
c. U.S. Census Bureau
d. Data from an experiment
21. Which of the following terms is used to refer to the process of capturing, storing, and maintaining data?
a. Data warehousing
b. Data mining
c. Data analysis
d. Data collection
22. In a recent study based upon an inspection of 400 homes in Springfield, 145 were found to violate one or more
city codes. The Springfield study is an example of the use of a _____.
a. census
b. sample
c. probability
d. population
23. In a sample of 3,200 registered voters, 1,440, or 45%, approve of the way the president is doing their job. A
political pollster states, "Forty five percent of all voters approve of the president." This statement is an example of
_____.
a. a sample
b. descriptive statistics
c. statistical inference
d. a population
24. Categorical data use which two scales of measurement?
a. Nominal and ordinal
b. Nominal and interval
c. Ordinal and interval
d. Interval and ratio
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