Question 1

Which of the following best describes the difference between descriptive and inferential statistics in a business context?

Accepted Answer

Descriptive statistics summarizes and presents data, while inferential statistics uses sample data to make generalizations about a population.

Question 2

A company wants to estimate the average waiting time at its drive-through window. Over 7 days, it records the waiting times for 2,109 orders. What is the population in this scenario?

Accepted Answer

All customers who use the drive-through window at the Dallas location over time.

Question 3

Which of the following is an example of quantitative data?

Accepted Answer

Temperature at which plastic melts (in degrees Celsius)

Question 4

A researcher wants to study the effect of a new training program on employee productivity. She randomly assigns half the employees to receive the training and the other half to serve as a control group. What type of data-collection method is this?

Accepted Answer

Designed experiment

Question 5

Which sampling method involves dividing the population into subgroups and then randomly selecting samples from each subgroup?

Accepted Answer

Stratified sampling

Question 6

Suppose a survey is conducted online and only people who see the survey and choose to respond are included. What type of bias is most likely to affect the results?

Accepted Answer

Nonresponse bias

Question 7

In the context of statistical inference, what is a 'measure of reliability'?

Accepted Answer

A statement about the degree of certainty associated with a statistical inference, often expressed as a bound on the error of estimation.

Question 8

A manager observes the time each worker spends on each order without interfering. What type of data-collection method is this?

Accepted Answer

Observational study

Question 9

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

Accepted Answer

Hypothesis test

Question 10

A simple random sample of $$n$$ units is selected from a population such that every possible sample of size $$n$$ has an equal chance of being chosen. Which formula best describes the number of possible samples?

Accepted Answer

$$\frac{N!}{n!(N-n)!}$$

Question 11

A company wants to estimate the average age of its viewers. It samples 200 viewers and finds the average age is 58 years, with a bound on the error of estimation of 2 years. What is the interval in which the true average age is likely to fall?

Accepted Answer

$$[56, 60]$$

Question 12

Which of the following is an example of selection bias?

Accepted Answer

Surveying only customers who visit a store during weekdays, excluding weekend shoppers.

Question 13

Which of the following variables measured in a study of fish in a river is qualitative?

Accepted Answer

Species (channel catfish, largemouth bass, smallmouth buffalo)

Question 14

A process whose internal operations are unknown or unspecified is called:

Accepted Answer

A black box

Question 15

Which sampling method involves selecting every $$kth $$unit from a list of all experimental units?

Accepted Answer

Systematic sampling

Question 16

In a business analytics context, why is statistical thinking important?

Accepted Answer

It helps extract useful information to make better business decisions by recognizing and analyzing variation.

Question 17

A researcher uses a published source such as the U.S. Census to obtain data. What is a potential limitation of this method?

Accepted Answer

The researcher cannot control how the data were collected.

Question 18

Which of the following is a step in the process of statistical analysis for business applications?

Accepted Answer

Collecting data, identifying variables, and describing data

Question 19

A company divides its population of stores into regions and randomly selects some regions, then collects data from all stores in those regions. What sampling method is this?

Accepted Answer

Cluster sampling

Question 20

Which of the following is most likely to result in measurement error in a survey?

Accepted Answer

Using ambiguous or leading questions

Statistics for Business and Economics: Chapter 1 Study Notes

Study Guide - Practice Questions

Study Guide - Flashcards