$$ \text{Relative Frequency} = \frac{\text{Frequency of a category}}{\text{Total number of observations}} $$

Question 1

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

Accepted Answer

Marital status (single, married)

Question 2

A researcher records the number of waterfalls in different national parks. What type of variable is this?

Accepted Answer

Quantitative, discrete

Question 3

Which of the following best describes a continuous variable?

Accepted Answer

A variable that can take any value within a given range

Question 4

In a frequency distribution table for GICS sectors, what does the 'frequency' represent?

Accepted Answer

The number of stocks in each sector

Question 5

Which of the following is a correct formula for calculating relative frequency?

Accepted Answer

$$ 	ext{Relative Frequency} = \frac{	ext{Frequency of a category}}{	ext{Total number of observations}} $$

Question 6

If a portfolio contains 20 stocks and 4 of them are in the Financials sector, what is the relative frequency of the Financials sector?

Accepted Answer

$$ \frac{4}{20} = 0.20 $$

Question 7

Which of the following variables is both quantitative and continuous?

Accepted Answer

Height

Question 8

A pie chart is most appropriate for displaying which type of data?

Accepted Answer

Qualitative (categorical) data

Question 9

Which of the following is NOT a characteristic of discrete data?

Accepted Answer

Can take on any value within a range

Question 10

Suppose you want to group stocks by their GICS sector and count the number in each. Which statistical tool would you use?

Accepted Answer

Frequency distribution table

Question 11

Which of the following is a correct interpretation of a relative frequency of 0.15 for the Consumer Staples sector in a portfolio of 20 stocks?

Accepted Answer

15% of the stocks are in the Consumer Staples sector

Question 12

Which variable from the following list is qualitative: height, weight, sex, siblings?

Accepted Answer

Sex

Question 13

A marathon runner's finishing time is best classified as which type of variable?

Accepted Answer

Quantitative, continuous

Question 14

Which of the following is the best example of a discrete variable?

Accepted Answer

Number of people in a household

Question 15

If you want to compare the proportion of stocks in each GICS sector visually, which chart would be most appropriate?

Accepted Answer

Pie chart

Question 16

Which of the following statements is TRUE regarding quantitative variables?

Accepted Answer

They can be either discrete or continuous

Question 17

A zip code is best classified as which type of variable?

Accepted Answer

Qualitative (categorical)

Question 18

Which of the following is the correct order for organizing qualitative data?

Accepted Answer

List data, create frequency table, calculate relative frequency, draw pie chart

Question 19

If a sector has a relative frequency of 0.10 in a portfolio of 20 stocks, how many stocks are in that sector?

Accepted Answer

$$ 0.10 	imes 20 = 2 $$

Question 20

Which of the following is NOT a step in constructing a frequency distribution for qualitative data?

Accepted Answer

Calculating the mean of the data

Organizing Data: Types of Variables and Frequency Distributions

Study Guide - Practice Questions