Question 1

Which of the following best describes the difference between descriptive statistics and inferential statistics?

Accepted Answer

Descriptive statistics summarize and present data, while inferential statistics make generalizations about a population based on sample data.

Question 2

In a blind taste test of 1,000 cola consumers, 560 preferred Pepsi. Which statement is an example of inferential statistics?

Accepted Answer

We are 95% confident that 53% - 59% of ALL cola consumers prefer Pepsi over Coca-Cola.

Question 3

Which of the following is NOT a fundamental element of statistics?

Accepted Answer

Correlation coefficient

Question 4

A business wants to estimate the average amount spent by customers at its stores. Which of the following best describes the population and sample in this scenario?

Accepted Answer

Population: All customers; Sample: A subset of customers whose spending is measured.

Question 5

Which of the following is an example of a quantitative variable?

Accepted Answer

Amount of a sale

Question 6

A polling organization surveys 1,500 registered voters to predict the outcome of a presidential election. Which element of inferential statistics is represented by the statement: 'We are 95% confident that 51% - 53% of ALL voters will vote for candidate A'?

Accepted Answer

Measure of reliability

Question 7

Which of the following best illustrates a misuse of statistics in business?

Accepted Answer

Comparing kids who ate Frosted Mini-Wheats against kids who had only water for breakfast to claim a 20% improvement in attentiveness.

Question 8

Which of the following statements about business analytics is TRUE?

Accepted Answer

Business analytics refers to methodologies that extract useful information from data to make better business decisions.

Question 9

Suppose a company wants to know if a new marketing campaign increases sales. They collect sales data before and after the campaign from a random sample of stores. Which statistical process are they using?

Accepted Answer

Inferential statistics

Question 10

Which of the following is a correct definition of a variable in statistics?

Accepted Answer

A variable is a characteristic or property of an individual experimental unit.

Question 11

A statistical inference is made about a population based on information contained in a sample. Which of the following is an example of statistical inference?

Accepted Answer

Estimating that 60% of ALL students at a university will pass a course based on a sample.

Question 12

Which of the following is NOT an element of a descriptive statistical problem?

Accepted Answer

A measure of reliability of the inference

Question 13

A company wants to know the proportion of customers who prefer their new product. They survey 500 customers and find that 320 prefer the new product. What is the point estimate for the proportion of customers who prefer the new product?

Accepted Answer

$$\frac{320}{500} = 0.64$$

Question 14

Which of the following best describes qualitative data?

Accepted Answer

Measurements that can only be classified into categories.

Question 15

In the context of statistics, what is a measure of reliability?

Accepted Answer

A statement about the degree of uncertainty associated with a statistical inference.

Question 16

A company claims that their product increases productivity by 25%. However, the study compared employees who used the product to those who did not eat breakfast. What is the main flaw in this statistical claim?

Accepted Answer

The comparison group was not appropriate, leading to misleading results.

Question 17

Which of the following is an example of a statistical inference with a measure of reliability?

Accepted Answer

We are 95% confident that 53% - 59% of ALL cola consumers prefer Pepsi.

Question 18

Suppose you are given the following scenario: A survey of 1,500 randomly selected registered voters shows 52% support candidate A, 46% support candidate B, and 2% support candidate C. Which of the following is a descriptive statistic?

Accepted Answer

52% of the sampled voters support candidate A.

Question 19

Which of the following best describes the role of statistical methods in business analytics?

Accepted Answer

Statistical methods are used to extract useful information from data to make better business decisions.

Question 20

A company wants to generalize the results of a sample survey to all its customers. Which statistical concept allows them to do this?

Accepted Answer

Statistical inference

Chapter 1: Elements of Statistics and Applications in Business

Study Guide - Practice Questions

Study Guide - Flashcards