Question 1

Which of the following best describes cross-sectional data?

Accepted Answer

Data collected at the same or approximately the same point in time.

Question 2

A company wants to analyze the trend in average gasoline prices in the U.S. from 2009 to 2014. What type of data are they using?

Accepted Answer

Time series data

Question 3

Which of the following is NOT a potential source of data for business statistics?

Accepted Answer

Personal opinions without any data collection

Question 4

In an experiment to test a new drug, participants are randomly assigned to receive either the drug or a placebo. What type of study is this?

Accepted Answer

Experimental study

Question 5

Which of the following is an example of unethical behavior in statistical practice?

Accepted Answer

Developing misleading graphs to exaggerate results

Question 6

Given the following frequency distribution for tune-up parts cost, what is the relative frequency for the $70-79$ class?

$	ext{Class Frequency: } 50-59: 2,\ 60-69: 13,\ 70-79: 16,\ 80-89: 7,\ 90-99: 7,\ 100-109: 5$

Accepted Answer

$\frac{16}{50} = 0.32$

Question 7

A pie chart is most appropriate for displaying which type of data?

Accepted Answer

Categorical data

Question 8

If a class in a pie chart has a relative frequency of $0.25$, how many degrees of the circle does it occupy?

Accepted Answer

$0.25 	imes 360 = 90$ degrees

Question 9

Which graphical display is best for showing the distribution and actual values of a small quantitative dataset?

Accepted Answer

Dot plot

Question 10

A histogram of executive salaries shows a very long tail to the right. How would you describe the skewness of this distribution?

Accepted Answer

Highly right-skewed

Question 11

What is the formula to determine the minimum number of classes $k$ for a frequency distribution, given $n$ observations?

Accepted Answer

$2^k > n$

Question 12

Given the highest observed value $H = 109$, the lowest observed value $L = 52$, and $k = 6$ classes, what is the minimum class interval $i$?

Accepted Answer

$i \geq \frac{109 - 52}{6} = 9.5$

Question 13

Which of the following statements about histograms is TRUE?

Accepted Answer

Histograms have no natural separation between adjacent rectangles.

Question 14

A cumulative frequency distribution shows:

Accepted Answer

The number of items with values less than or equal to the upper limit of each class.

Question 15

Which of the following is a key advantage of a stem-and-leaf display over a histogram?

Accepted Answer

It shows the actual data values.

Question 16

A business wants to summarize the number of sales by region using a graphical display. Which of the following would be most appropriate?

Accepted Answer

Bar chart

Question 17

If the percent frequency for 'Average' quality rating at Marada Inn is $25\%$, how many guests out of 20 gave this rating?

Accepted Answer

$0.25 	imes 20 = 5$

Question 18

Which of the following is a reason why data errors can occur during data acquisition?

Accepted Answer

Using data acquired with little care

Question 19

A histogram of detergent density data shows that less than 1% of samples are near the undesirable $0.40$ level. What does this indicate about the process?

Accepted Answer

Most samples are within the acceptable density range.

Question 20

Which of the following best describes an observational study?

Accepted Answer

Researchers collect data without attempting to influence variables.

Business Statistics I: Data Types, Acquisition, and Descriptive Statistics

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