Question 1

Which of the following best describes the difference between a population and a sample in business statistics?

Accepted Answer

A population includes all possible observations of interest, while a sample is a subset selected from the population.

Question 2

A manager wants to estimate the average time customers spend in her store. She records the time for 50 randomly selected customers. In this context, what is the parameter and what is the statistic?

Accepted Answer

The parameter is the true average time for all customers; the statistic is the average time for the 50 sampled customers.

Question 3

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

Accepted Answer

Type of payment method (cash, credit, debit)

Question 4

A company wants to know the proportion of its employees who prefer remote work. Which sampling method would best ensure that every employee has an equal chance of being selected?

Accepted Answer

Simple random sampling

Question 5

Which of the following statements about a census is correct?

Accepted Answer

A census attempts to collect data from every member of the population.

Question 6

A survey is conducted to determine the favorite soft drink among college students. Which of the following would be a BAD sampling method?

Accepted Answer

Surveying only students in the cafeteria at noon

Question 7

Which of the following best describes a parameter?

Accepted Answer

A numerical summary that describes a characteristic of a population

Question 8

A business analyst is interested in the relationship between two categorical variables: department (Sales, HR, IT) and preferred work shift (Morning, Evening). Which tool should she use to display this data?

Accepted Answer

Contingency table

Question 9

Which of the following is NOT a principle of good sampling?

Accepted Answer

Selecting individuals based on convenience

Question 10

A frequency table is used to:

Accepted Answer

Summarize the number of observations for each category of a variable

Question 11

Which of the following is an example of a scenario where a census would NOT make sense?

Accepted Answer

Testing the lifetime of light bulbs by destroying each one in the process

Question 12

A company wants to ensure its survey results are valid. Which of the following is LEAST likely to threaten the validity of the survey?

Accepted Answer

Using a simple random sample

Question 13

Suppose a business wants to compare the satisfaction levels of customers who shop online versus in-store. Which type of variable is 'shopping method'?

Accepted Answer

Categorical variable

Question 14

Which of the following is a key reason for using random sampling in business research?

Accepted Answer

To reduce selection bias and ensure the sample represents the population

Question 15

A company wants to analyze the relationship between gender (male, female, non-binary) and department (Sales, HR, IT). Which chart is most appropriate?

Accepted Answer

A bar chart for each department, grouped by gender

Question 16

Which of the following best describes a simple random sample (SRS)?

Accepted Answer

Every possible sample of the desired size has an equal chance of being selected

Question 17

A business wants to display the distribution of a single categorical variable, such as 'preferred brand.' Which chart is most appropriate?

Accepted Answer

Bar chart

Question 18

Which of the following is a correct application of the three rules of data analysis?

Accepted Answer

Make a picture, look for patterns, and consider what you know about the context

Question 19

A researcher wants to study the effect of a new training program on employee productivity. She randomly assigns employees to either the new program or the standard program. What type of study is this?

Accepted Answer

An experiment

Question 20

Suppose a survey asks respondents to rate their satisfaction on a scale from 1 to 5. What type of variable is this?

Accepted Answer

Ordinal variable

Introductory Business Statistics: Key Concepts and Course Structure

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