Question 1

Which of the following best describes the main purpose of statistics in business decision-making?

Accepted Answer

To transform data into information that can be used as a basis for inference.

Question 2

A researcher collects the unemployment rates for all 50 U.S. states in the year 2024. What type of data is this?

Accepted Answer

Cross-sectional data

Question 3

Which of the following is an example of time series data?

Accepted Answer

GDP of Canada for each year from 2000 to 2020

Question 4

Suppose you want to estimate the average salary of all employees in a large corporation. Which of the following is the best approach?

Accepted Answer

Select a random sample of employees and use their average salary to estimate the population average.

Question 5

In statistics, what is the difference between a parameter and a statistic?

Accepted Answer

A parameter is a value calculated from population data, while a statistic is a value calculated from sample data.

Question 6

Which of the following statements about samples is TRUE?

Accepted Answer

A sample must be representative of the population to make valid inferences.

Question 7

A business analyst wants to predict next year's sales for a company based on a sample of sales data from the past five years. This process is best described as:

Accepted Answer

Statistical inference

Question 8

Which of the following scenarios could result in a biased sample?

Accepted Answer

Surveying only customers who gave positive feedback.

Question 9

If a researcher uses a sample statistic to estimate a population parameter, which of the following best describes the process?

Accepted Answer

Statistical inference

Question 10

Which of the following is NOT a reason why we use samples instead of populations in statistical studies?

Accepted Answer

Samples always provide more accurate information than populations.

Question 11

A company wants to know the average age of its customers. They survey 200 randomly selected customers out of 10,000. The average age calculated from these 200 customers is called:

Accepted Answer

A sample statistic

Question 12

Which of the following best illustrates the concept of cross-sectional data?

Accepted Answer

Measuring the unemployment rate in all U.S. states in the year 2022

Question 13

Suppose a survey is conducted only among people who attend a specific event. What is the most likely issue with this sample?

Accepted Answer

It is likely to be biased and not representative of the general population.

Question 14

Which of the following statements about statistical inference is correct?

Accepted Answer

Statistical inference is the process of making estimates or predictions about a population based on sample data.

Question 15

A researcher wants to estimate the average commute time for all employees in a city. She randomly selects 500 employees and calculates their average commute time. Which of the following is true?

Accepted Answer

The calculated average is a sample statistic.

Question 16

Which of the following is a key requirement for a sample to be useful in making inferences about a population?

Accepted Answer

The sample must be randomly selected and representative of the population.

Question 17

If a sample is not representative of the population, what is the most likely consequence?

Accepted Answer

The results may be biased and not accurately reflect the population.

Question 18

Which of the following best describes the relationship between data, statistics, and information?

Accepted Answer

Data is analyzed using statistics to produce information.

Question 19

Suppose you are analyzing the interest rates of European countries in 2025. What type of data are you working with?

Accepted Answer

Cross-sectional data

Question 20

A survey of 1,000 randomly selected adults in the U.S. finds that 60% support a new policy. Which of the following is TRUE?

Accepted Answer

The 60% is a sample statistic used to estimate the population parameter.

Chapter 1: An Introduction to Business Statistics

Study Guide - Practice Questions

Study Guide - Flashcards