Question 1

Which of the following best describes a variable measured on a ratio scale?

Accepted Answer

Monthly sales revenue in U.S. dollars

Question 2

A researcher wants to compare the average time spent shopping between two groups: weekday shoppers and weekend shoppers. She collects the data as a single column for 'time spent' and another column for 'shopping day.' What data arrangement is she using?

Accepted Answer

Stacked data

Question 3

Which of the following is an example of a coverage error in a survey?

Accepted Answer

The survey frame excludes recent hires from the employee list

Question 4

A company wants to estimate the average number of products sold per store. They divide their stores into three regions (North, South, West) and randomly select stores from each region proportional to the region's size. Which sampling method are they using?

Accepted Answer

Stratified sampling

Question 5

Which of the following statements about simple random sampling is TRUE?

Accepted Answer

Every possible sample of a fixed size has an equal chance of being selected.

Question 6

A survey asks respondents to rate their fitness on a scale from 1 to 5. This variable is best classified as:

Accepted Answer

Numerical, discrete, ordinal

Question 7

Which of the following is an example of a measurement error in survey research?

Accepted Answer

Respondents answer in a socially desirable way rather than truthfully.

Question 8

A dataset contains the following entries for a 'Brand' variable: 'Appel', 'Apple', 'APPle', 'Samsun', 'Samsung', 'Blueberry', 'Blackberry'. What is the most appropriate first step in data cleaning?

Accepted Answer

Standardize the spelling and capitalization of brand names

Question 9

Which of the following best describes the difference between a parameter and a statistic?

Accepted Answer

A parameter summarizes a variable for a population; a statistic summarizes a variable for a sample.

Question 10

A business analyst is combining two datasets: one records 'Customer ID' and the other records 'Cust Number.' What type of data error is most likely to occur?

Accepted Answer

Data integration error

Question 11

A researcher uses a random number table to select 50 unique invoice numbers from a list of 5,000. What sampling method is being used?

Accepted Answer

Simple random sampling without replacement

Question 12

Which of the following is a key advantage of stratified sampling over simple random sampling?

Accepted Answer

It ensures representation from all subgroups in the population.

Question 13

Suppose you want to recode a numerical variable 'GPA' into a categorical variable 'Dean’s List' where 'YES' is assigned to GPAs of 3.3 or higher and 'NO' otherwise. Which Excel formula would you use?

Accepted Answer

$$=IF(GPA\u003c3.3,\ "NO",\ "YES")$$

Question 14

Which of the following is a potential ethical issue in survey research?

Accepted Answer

Reporting results without disclosing the sample size or margin of error

Question 15

A company wants to survey its customers but only includes those who have made a purchase in the last month. What type of error might this introduce?

Accepted Answer

Coverage error

Question 16

Which of the following best describes a systematic sample?

Accepted Answer

Selecting every $$kth $$item from a list after a random start, where $$k = \frac{N}{n}$$

Question 17

A dataset contains a value of 1,079 MB for monthly data usage, while all other values are between 0.4 MB and 26.8 MB. What is the most likely issue with this value?

Accepted Answer

It is an outlier and may be a data entry error

Question 18

Which of the following is TRUE about nonprobability samples?

Accepted Answer

They are mainly used for informal approximations or pilot studies.

Question 19

A survey question asks, 'How satisfied are you with your salary and your work environment?' What type of survey error could this question introduce?

Accepted Answer

Measurement error due to a double-barreled question

Question 20

Which of the following best describes the process of recoding variables?

Accepted Answer

Transforming a numerical variable into grouped categories based on defined ranges

Chapter 1 - Defining and Collecting Data in Business Statistics

Study Guide - Practice Questions

Study Guide - Flashcards