Statistics for Business and Economics, 8th Edition (Newbold) Chapter 2 Describing Data: Numerical |326 QUESTIONS AND ANSWERs

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Statistics for Business and Economics, 8e (Newbold) Chapter 2 Describing Data: Numerical 1) If you are interested in comparing variation in sales for small and large stores selling similar goods, w... hich of the following is the most appropriate measure of dispersion? A) the range B) the interquartile range C) the standard deviation D) the coefficient of variation Answer: D Difficulty: Easy Topic: Measures of Variability AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 2) Suppose you are told that the mean of a sample is below the median. What does this information suggest about the distribution? A) The distribution is symmetric. B) The distribution is skewed to the right or positively skewed. C) The distribution is skewed to the left or negatively skewed. D) There is insufficient information to determine the shape of the distribution. Answer: C Difficulty: Easy Topic: Measures of Central Tendency and Location AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 3) For the following scatter plot, what would be your best estimate of the correlation coefficient? A) -0.8 B) -1.0 C) 0.0 D) -0.3 Answer: A Difficulty: Moderate Topic: Measures of Relationships Between Variables AACSB: Analytic Skills Course LO: Compare and contrast methods of summarizing and describing data 2-1 ScholarStock4) Given a set of 25 observations, for what value of the correlation coefficient would we be able to say that there is evidence that a relationship exists between the two variables? A) ≥ 0.40 B) ≥ 0.35 C) ≥ 0.30 D) ≥ 0.25 Answer: A Difficulty: Moderate Topic: Measures of Relationships Between Variables AACSB: Analytic Skills Course LO: Identify and apply formulas for calculating descriptive statistics 5) Which of the following statements is true about the correlation coefficient and covariance? A) The covariance is the preferred measure of the relationship between two variables since it is generally larger than the correlation coefficient. B) The correlation coefficient is a preferred measure of the relationship between two variables since its calculation is easier than the covariance. C) The covariance is a standardized measure of the linear relationship between two variables. D) The covariance and corresponding correlation coefficient are represented by different signs, one is negative while the other is positive and vice versa. Answer: C Difficulty: Moderate Topic: Measures of Relationships Between Variables AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 6) For the following scatter plot, what would be your best estimate of the correlation coefficient? A) 1.0 B) 0.7 C) 0.3 D) 0.1 Answer: B Difficulty: Moderate Topic: Measures of Relationships Between Variables AACSB: Analytic Skills Course LO: Compare and contrast methods of summarizing and describing data 2-2 ScholarStock7) Which of the following descriptive statistics is least affected by outliers? A) mean B) median C) range D) standard deviation Answer: B Difficulty: Easy Topic: Measures of Central Tendency and Location AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 8) Which of the following statements is true? A) The correlation coefficient is always greater than the covariance. B) The covariance is always greater than the correlation coefficient. C) The covariance may be equal to the correlation coefficient. D) Neither the covariance nor the correlation coefficient can be equal to zero. Answer: C Difficulty: Moderate Topic: Measures of Relationships Between Variables AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 9) Which measures of central location are not affected by extremely small or extremely large data values? A) arithmetic mean and median B) median and mode C) mode and arithmetic mean D) geometric mean and arithmetic mean Answer: B Difficulty: Moderate Topic: Measures of Central Tendency and Location AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 10) Suppose you are told that sales this year are 30% higher than they were six years ago. What has been the average annual increase in sales over the past six years? A) 5.0% B) 4.5% C) 4% D) 3.5% Answer: B Difficulty: Moderate Topic: Measures of Central Tendency and Location AACSB: Analytic Skills Course LO: Identify and apply formulas for calculating descriptive statistics 2-3 ScholarStock11) Suppose you are told that sales this year are 20% higher than they were five years ago. What has been the annual average increase in sales over the past five years? A) 5.2% B) 4.7% C) 4.2% D) 3.7% Answer: D Difficulty: Moderate Topic: Measures of Central Tendency and Location AACSB: Analytic Skills Course LO: Identify and apply formulas for calculating descriptive statistics 12) Suppose you are told that over the past four years, sales have increased at rates of 10%, 8%, 6%, and 4%. What has been the average annual increase in sales over the past four years? A) 7.0% B) 6.7% C) 6.4% D) 6.5% Answer: A Difficulty: Moderate Topic: Measures of Central Tendency and Location AACSB: Analytic Skills Course LO: Identify and apply formulas for calculating descriptive statistics 13) Suppose you are told that the average return on investment for a particular class of investments was 7.8% with a standard deviation of 2.3. Furthermore, the histogram of the distribution of returns is approximately bell-shaped. We would expect that 95 percent of all of these investments had a return between what two values? A) 5.5% and 10.1% B) 0% and 15% C) 3.2% and 12.4% D) 0.9% and 14.7% Answer: C Difficulty: Moderate Topic: Measures of Central Tendency and Location AACSB: Analytic Skills Course LO: Identify and apply formulas for calculating descriptive statistics 14) What is the relationship among the mean, median, and mode in a positively skewed distribution? A) They are all equal. B) The mean is always the smallest value. C) The mean is always the largest value. D) The mode is the largest value. Answer: B Difficulty: Moderate Topic: Measures of Central Tendency and Location AACSB: Reflective Thinking Skills Course LO: Compare and contrast methods of summarizing and describing data 2-4 ScholarStock15) The manager of a local RV sales lot has collected data on the number of RVs sold per month for the last five years. That data is summarized below: # of Sales 0 1 2 3 4 5 6 # of Months 2 6 9 13 21 7 2 What is the weighted mean number of sales per month? A) 3.31 B) 3.23 C) 3.54 D) 3.62 Answer: B Difficulty: Moderate Topic: Weighted Mean and Measures of Grouped Data AACSB: Analytic Skills Course LO: Identify and apply formulas for calculating descriptive statistics [Show More]

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