Chapter 01 An Introduction to Business Statistics
1.
A population is a set of existing units.
True False
2.
If we examine some of the population measurements, we are conducting a census of the population.
True False
3.
A random sample is selected so that on each selection from the population every unit remaining in the population has an equal chance of being chosen.
True False
4.
A process is in statistical control if it does not exhibit any unusual variations.
True False
5.
An example of a quantitative variable is the make of a car.
True False
6.
An example of a qualitative variable is the fuel efficiency of a car.
True False
7.
Statistical inference is the science of using a sample of measurements to make generalization about the important aspects of a population of measurements.
True False
8.
If we sample without replacement, we do not place the unit chosen on a particular selection back into the population.
True False
1

9.
By taking a systematic sample, in which we select every 100 th shopper arriving at a specific store, we are approximating a random sample of shoppers.
True False
10.
Nonresponse reduces the sample size and may have a negative impact on the generalization of results if the individuals who do not respond are themselves nonrandom.
True False
11.
Undercoverage is when some units of the population are mistakenly included in the sample.
True False
12.
Statistical methods help to:
A. Demonstrate the need for improvement
B. Identify ways to make improvements
C. Assess whether or not improvement activities have been successful
D. Estimate the benefits of improvement
E. All of the above
13.
Ratio variables have the following unique characteristic:
A. Meaningful order
B. An inherently defined zero value
C. Categorical in nature
D. Predictable
E. Equal distance between points
14.
When we are choosing a random sample and we do not place chosen units back into the population, we are:
A. Sampling with replacement
B. Sampling by convience
C. Using a systematic sample
D. Using a voluntary response sample
E. Sampling without replacement
2

15.
Which of the following is a quantitative variable?
A. The make of a TV
B. A person's gender
C. Fuel efficiency of a car
D. Whether a person is an university graduate or not
E. Whether a person has a charge account
16.
Which of the following is a categorical variable?
A. Air temperature
B. Bank account balance
C. Daily sales in a store
D. Whether a person has a traffic violation
E. Value of company stock
17.
Measurements from a population are called
A. Statistics
B. Observations
C. Variables
D. Processes
E. Functions
18.
In studying processes, we are interested in examining a characteristic that tells us about the _____ of output.
A. Random sampling
B. Statistics
C. Variable
D. Existence
E. Quality
3

19.
The two types of quantitative variables are:
A. Ordinal and ratio
B. Interval and ordinal
C. Nominative and ordinal
D. Interval and ratio
E. Nominative and interval
20.
Temperature (in degrees Celcius) is an example of a(n) ________ variable.
A. Nominative
B. Ordinal
C. Interval
D. Ratio
21.
Jersey numbers of soccer players are an example of a(n) ___________ variable.
A. Nominative
B. Ordinal
C. Interval
D. Ratio
22.
Weights of items obtained using a well-adjusted scale represents a(n) _____________ level of measurement.
A. Nominative
B. Ordinal
C. Interval
D. Ratio
23.
An identification of police officers by rank would represent a(n) ____________ level of measurement.
A. Nominative
B. Ordinal
C. Interval
D. Ratio
4

24.
__________ is a necessary component of a runs plot.
A. Observation over time
B. Qualitative variable
C. Random sampling of the data
D. Voluntary response data
E. A Likert scale survey
25.
______________ is the science of using a sample to make generalizations about the important aspects of a population.
A. Statistical process control
B. Descriptive statistics
C. Random sample
D. Statistical inference
E. Deductive reasoning
26.
Degree program entrance exam scores, such as MCAT scores, are an example of a(n) ________________ variable.
A. Ordinal
B. Ratio
C. Nominative
D. Interval
27.
The number of kilometers a truck is driven before it is overhauled is an example of a(n) _____________ variable.
A. Nominative
B. Ordinal
C. Interval
D. Ratio
5

28.
Which one of the following sampling examples would generally lead to the least reliable statistical inferences about the population from which the sample has been selected?
A. A random sample selected without replacement
B. A random sample selected with replacement
C. A voluntary response sample
D. A systematic sample
E. A stratified random sample
29.
A(n) _____ variable is a qualitative variable such that there is no meaningful ordering or ranking of the categories.
A. Ratio
B. Ordinal
C. Nominative
D. Interval
30.
A person's telephone area code is an example of a(n) _____________ variable.
A. Nominative
B. Ordinal
C. Interval
D. Ratio
31.
Any characteristic of a population unit is a(n):
A. Measurement
B. Sample
C. Observation
D. Variable
E. Trait
6

32.
A list of all of the units in a population is called _____.
A. Census
B. Frame
C. A sample
D. A variable
E. A list
33.
The two types of qualitative variables are:
A. Ordinal and ratio
B. Interval and ordinal
C. Nominative and ordinal
D. Interval and ratio
E. Nominative and interval
34.
A customer is asked to rank beverages in order of preference (most preferred to least preferred) in a market research study. The level of measurement for this study would be at the _____ level.
A. Nominal
B. Ordinal
C. Interval
D. Ratio
E. Quantitative
35.
In sampling from the population, a _____ is a unique group representing a segment of the population of interest and which has been predetermined by the researcher.
A. Focus group
B. System
C. Parliament
D. Response
E. Strata
7

36.
When a researcher uses a(n) _____ sample, they decrease bias in the sample.
A. Convenient
B. Nonrandom
C. Underrepresented
D. Random
E. Systematic
37.
Statistical control is examined by assessing the amount of _____ a horizontal constant.
A. Variation around
B. Points above
C. Data below
D. Measures on
E. Possible points along
38.
A _____ plot is a graph of individual process measurements versus time.
A. line
B. runs
C. scatter
D. pie-chart
E. stem
39.
A machine produces pencils. At the start of the day, the potential number of pencils produced is _____. At the end of the day, the actual number of pencils produced is _____.
A. finite infinite
B. actual probable
C. infinite finite
D. staged actual
E. controlled measured
40.
In order to improve the quality of products and services, we must remove the root causes of process _____.
________________________________________
8

41.
Any characteristic of a population is called a _____.
________________________________________
42.
The goal of _____ is to stabilize and reduce the amount of process variation.
________________________________________
43.
A _____ is an examination of all the units in a population.
________________________________________
44.
An _____ study is a study in which we make statistical inferences about a population of existing units.
________________________________________
45.
A _____ is a list of all the units in a population.
________________________________________
46.
The process of assigning a value of a variable to each unit in a population or sample is called _____.
________________________________________
47.
A ____ is a graph of individual process measurements versus time.
________________________________________
48.
Statistical _____ refers to using a sample of measurements making generalizations about the important aspects of a population.
________________________________________
49.
A _____ is a subset of the units in a population.
________________________________________
50.
A _____ variable can have values that are numbers on the real number line.
________________________________________
51.
A sequence of operations that takes inputs and turns them into outputs is a _____.
________________________________________
9

52.
A _____ variable can have values that indicate into which of several segments of a population it belongs.
________________________________________
53.
A set of existing units we wish to study is called a _____.
________________________________________
54.
_____ refers to describing the important aspects of a set of measurements.
________________________________________
55.
In situations when it is not possible to number all of the units in a population, we often use a _____ sample to approximate a random sample.
________________________________________
56.
A runs plot with an erratic pattern would indicate that the process is _____.
________________________________________
57.
If a unit is placed back into the population after being selected for a sample, we are sampling _____ replacement.
________________________________________
58.
A _____ table is used to help select items for a random sample.
________________________________________
59.
A process that is in statistical control does not necessarily imply that the process is __________ of meeting the customer requirements.
________________________________________
10

60.
A consumer's yes/no reply to a survey question is what type of variable?
61.
The change in daily price of a stock is what type of variable?
62.
List two types of sampling methods.
63.
In a voluntary response sample, what types of opinions are usually expressed?
11

64.
Describe one weakness and one advantage to mailed surveys.
12

Chapter 01 An Introduction to Business Statistics Key
1.
A population is a set of existing units.
TRUE
BT: R
Bowerman - Chapter 01 #1
Difficulty: Easy
Learning Objective: 1
2.
If we examine some of the population measurements, we are conducting a census of the population.
FALSE
BT: R
Bowerman - Chapter 01 #2
Difficulty: Medium
Learning Objective: 1
3.
A random sample is selected so that on each selection from the population every unit remaining in the population has an equal chance of being chosen.
TRUE
BT: R
Bowerman - Chapter 01 #3
Difficulty: Easy
Learning Objective: 2
4.
A process is in statistical control if it does not exhibit any unusual variations.
TRUE
BT: R
Bowerman - Chapter 01 #4
Difficulty: Easy
Learning Objective: 3
5.
An example of a quantitative variable is the make of a car.
FALSE
BT: R
Bowerman - Chapter 01 #5
Difficulty: Easy
Learning Objective: 4
13

6.
An example of a qualitative variable is the fuel efficiency of a car.
FALSE
BT: R
Bowerman - Chapter 01 #6
Difficulty: Easy
Learning Objective: 4
7.
Statistical inference is the science of using a sample of measurements to make generalization about the important aspects of a population of measurements.
TRUE
BT: R
Bowerman - Chapter 01 #7
Difficulty: Medium
Learning Objective: 2
8.
If we sample without replacement, we do not place the unit chosen on a particular selection back into the population.
TRUE
BT: R
Bowerman - Chapter 01 #8
Difficulty: Medium
Learning Objective: 2
9.
By taking a systematic sample, in which we select every 100 th shopper arriving at a specific store, we are approximating a random sample of shoppers.
TRUE
BT: R
Bowerman - Chapter 01 #9
Difficulty: Medium
Learning Objective: 2
10.
Nonresponse reduces the sample size and may have a negative impact on the generalization of results if the individuals who do not respond are themselves nonrandom.
TRUE
BT: R
Bowerman - Chapter 01 #10
Difficulty: Hard
Learning Objective: 5
14

11.
Undercoverage is when some units of the population are mistakenly included in the sample.
FALSE
BT: R
Bowerman - Chapter 01 #11
Difficulty: Medium
Learning Objective: 5
12.
Statistical methods help to:
A.
Demonstrate the need for improvement
B.
Identify ways to make improvements
C.
Assess whether or not improvement activities have been successful
D.
Estimate the benefits of improvement
E.
All of the above
BT: U
Bowerman - Chapter 01 #12
Difficulty: Easy
Learning Objective: 1
13.
Ratio variables have the following unique characteristic:
A.
Meaningful order
B.
An inherently defined zero value
C.
Categorical in nature
D.
Predictable
E.
Equal distance between points
BT: R
Bowerman - Chapter 01 #13
Difficulty: Easy
Learning Objective: 4
14.
When we are choosing a random sample and we do not place chosen units back into the population, we are:
A.
Sampling with replacement
B.
Sampling by convience
C.
Using a systematic sample
D.
Using a voluntary response sample
E.
Sampling without replacement
BT: R
15

Bowerman - Chapter 01 #14
Difficulty: Medium
Learning Objective: 2
15.
Which of the following is a quantitative variable?
A.
The make of a TV
B.
A person's gender
C.
Fuel efficiency of a car
D.
Whether a person is an university graduate or not
E.
Whether a person has a charge account
BT: Apply (Ap)
Bowerman - Chapter 01 #15
Difficulty: Easy
Learning Objective: 4
16.
Which of the following is a categorical variable?
A.
Air temperature
B.
Bank account balance
C.
Daily sales in a store
D.
Whether a person has a traffic violation
E.
Value of company stock
BT: Ap
Bowerman - Chapter 01 #16
Difficulty: Medium
Learning Objective: 4
17.
Measurements from a population are called
A.
Statistics
B.
Observations
C.
Variables
D.
Processes
E.
Functions
BT: R
Bowerman - Chapter 01 #17
Difficulty: Medium
Learning Objective: 1
16

18.
In studying processes, we are interested in examining a characteristic that tells us about the _____ of output.
A.
Random sampling
B.
Statistics
C.
Variable
D.
Existence
E.
Quality
BT: R
Bowerman - Chapter 01 #18
Difficulty: Easy
Learning Objective: 3
19.
The two types of quantitative variables are:
A.
Ordinal and ratio
B.
Interval and ordinal
C.
Nominative and ordinal
D.
Interval and ratio
E.
Nominative and interval
BT: R
Bowerman - Chapter 01 #19
Difficulty: Medium
Learning Objective: 4
20.
Temperature (in degrees Celcius) is an example of a(n) ________ variable.
A.
Nominative
B.
Ordinal
C.
Interval
D.
Ratio
BT: R
Bowerman - Chapter 01 #20
Difficulty: Medium
Learning Objective: 4
17

21.
Jersey numbers of soccer players are an example of a(n) ___________ variable.
A.
Nominative
B.
Ordinal
C.
Interval
D.
Ratio
BT: U
Bowerman - Chapter 01 #21
Difficulty: Medium
Learning Objective: 4
22.
Weights of items obtained using a well-adjusted scale represents a(n) _____________ level of measurement.
A.
Nominative
B.
Ordinal
C.
Interval
D.
Ratio
BT: U
Bowerman - Chapter 01 #22
Difficulty: Medium
Learning Objective: 4
23.
An identification of police officers by rank would represent a(n) ____________ level of measurement.
A.
Nominative
B.
Ordinal
C.
Interval
D.
Ratio
BT: U
Bowerman - Chapter 01 #23
Difficulty: Medium
Learning Objective: 4
18

24.
__________ is a necessary component of a runs plot.
A.
Observation over time
B.
Qualitative variable
C.
Random sampling of the data
D.
Voluntary response data
E.
A Likert scale survey
BT: R
Bowerman - Chapter 01 #24
Difficulty: Medium
Learning Objective: 3
25.
______________ is the science of using a sample to make generalizations about the important aspects of a population.
A.
Statistical process control
B.
Descriptive statistics
C.
Random sample
D.
Statistical inference
E.
Deductive reasoning
BT: R
Bowerman - Chapter 01 #25
Difficulty: Easy
Learning Objective: 1
26.
Degree program entrance exam scores, such as MCAT scores, are an example of a(n)
________________ variable.
A.
Ordinal
B.
Ratio
C.
Nominative
D.
Interval
BT: U
Bowerman - Chapter 01 #26
Difficulty: Hard
Learning Objective: 4
19

27.
The number of kilometers a truck is driven before it is overhauled is an example of a(n) _____________ variable.
A.
Nominative
B.
Ordinal
C.
Interval
D.
Ratio
BT: U
Bowerman - Chapter 01 #27
Difficulty: Medium
Learning Objective: 4
28.
Which one of the following sampling examples would generally lead to the least reliable statistical inferences about the population from which the sample has been selected?
A.
A random sample selected without replacement
B.
A random sample selected with replacement
C.
A voluntary response sample
D.
A systematic sample
E.
A stratified random sample
BT: U
Bowerman - Chapter 01 #28
Difficulty: Medium
Learning Objective: 2
29.
A(n) _____ variable is a qualitative variable such that there is no meaningful ordering or ranking of the categories.
A.
Ratio
B.
Ordinal
C.
Nominative
D.
Interval
BT: R
Bowerman - Chapter 01 #29
Difficulty: Easy
Learning Objective: 4
20

30.
A person's telephone area code is an example of a(n) _____________ variable.
A.
Nominative
B.
Ordinal
C.
Interval
D.
Ratio
BT: Ap
Bowerman - Chapter 01 #30
Difficulty: Medium
Learning Objective: 4
31.
Any characteristic of a population unit is a(n):
A.
Measurement
B.
Sample
C.
Observation
D.
Variable
E.
Trait
BT: R
Bowerman - Chapter 01 #31
Difficulty: Medium
Learning Objective: 1
32.
A list of all of the units in a population is called _____.
A.
Census
B.
Frame
C.
A sample
D.
A variable
E.
A list
BT: R
Bowerman - Chapter 01 #32
Difficulty: Medium
Learning Objective: 1
21

33.
The two types of qualitative variables are:
A.
Ordinal and ratio
B.
Interval and ordinal
C.
Nominative and ordinal
D.
Interval and ratio
E.
Nominative and interval
BT: R
Bowerman - Chapter 01 #33
Difficulty: Medium
Learning Objective: 1 and 4
34.
A customer is asked to rank beverages in order of preference (most preferred to least preferred) in a market research study. The level of measurement for this study would be at the _____ level.
A.
Nominal
B.
Ordinal
C.
Interval
D.
Ratio
E.
Quantitative
BT: Ap
Bowerman - Chapter 01 #34
Difficulty: Medium
Learning Objective: 4
35.
In sampling from the population, a _____ is a unique group representing a segment of the population of interest and which has been predetermined by the researcher.
A.
Focus group
B.
System
C.
Parliament
D.
Response
E.
Strata
BT: R
Bowerman - Chapter 01 #35
Difficulty: Medium
Learning Objective: 2
22

36.
When a researcher uses a(n) _____ sample, they decrease bias in the sample.
A.
Convenient
B.
Nonrandom
C.
Underrepresented
D.
Random
E.
Systematic
BT: R
Bowerman - Chapter 01 #36
Difficulty: Medium
Learning Objective: 2
37.
Statistical control is examined by assessing the amount of _____ a horizontal constant.
A.
Variation around
B.
Points above
C.
Data below
D.
Measures on
E.
Possible points along
BT: R
Bowerman - Chapter 01 #37
Difficulty: Hard
Learning Objective: 3
38.
A _____ plot is a graph of individual process measurements versus time.
A.
line
B.
runs
C.
scatter
D.
pie-chart
E.
stem
BT: R
Bowerman - Chapter 01 #38
Difficulty: Easy
Learning Objective: 3
23

39.
A machine produces pencils. At the start of the day, the potential number of pencils produced is _____.
At the end of the day, the actual number of pencils produced is _____.
A.
finite infinite
B.
actual probable
C.
infinite finite
D.
staged actual
E.
controlled measured
BT: Ap
Bowerman - Chapter 01 #39
Difficulty: Medium
Learning Objective: 3
40.
In order to improve the quality of products and services, we must remove the root causes of process
_____.
Variation
BT: Ap
Bowerman - Chapter 01 #40
Difficulty: Medium
Learning Objective: 3
41.
Any characteristic of a population is called a _____.
Variable
BT: R
Bowerman - Chapter 01 #41
Difficulty: Medium
Learning Objective: 1
42.
The goal of _____ is to stabilize and reduce the amount of process variation.
Statistical Process Control
BT: U
Bowerman - Chapter 01 #42
Difficulty: Medium
Learning Objective: 3
43.
A _____ is an examination of all the units in a population.
Census
BT: R
Bowerman - Chapter 01 #43
Difficulty: Easy
Learning Objective: 1
24

44.
An _____ study is a study in which we make statistical inferences about a population of existing units.
Enumerative
BT: R
Bowerman - Chapter 01 #44
Difficulty: Medium
Learning Objective: 1
45.
A _____ is a list of all the units in a population.
Frame
BT: R
Bowerman - Chapter 01 #45
Difficulty: Medium
Learning Objective: 2
46.
The process of assigning a value of a variable to each unit in a population or sample is called _____.
Measurement
BT: R
Bowerman - Chapter 01 #46
Difficulty: Medium
Learning Objective: 1
47.
A ____ is a graph of individual process measurements versus time.
Runs Plot
BT: R
Bowerman - Chapter 01 #47
Difficulty: Easy
Learning Objective: 3
48.
Statistical _____ refers to using a sample of measurements making generalizations about the important aspects of a population.
Inference
BT: R
Bowerman - Chapter 01 #48
Difficulty: Easy
Learning Objective: 1
49.
A _____ is a subset of the units in a population.
Sample
BT: R
Bowerman - Chapter 01 #49
25

Difficulty: Easy
Learning Objective: 2
50.
A _____ variable can have values that are numbers on the real number line.
Quantitative
BT: R
Bowerman - Chapter 01 #50
Difficulty: Medium
Learning Objective: 4
51.
A sequence of operations that takes inputs and turns them into outputs is a _____.
Process
BT: U
Bowerman - Chapter 01 #51
Difficulty: Medium
Learning Objective: 3
52.
A _____ variable can have values that indicate into which of several segments of a population it belongs.
Qualitative
BT: R
Bowerman - Chapter 01 #52
Difficulty: Medium
Learning Objective: 4
53.
A set of existing units we wish to study is called a _____.
Population
BT: R
Bowerman - Chapter 01 #53
Difficulty: Medium
Learning Objective: 1
54.
_____ refers to describing the important aspects of a set of measurements.
Descriptive statistics
BT: R
Bowerman - Chapter 01 #54
Difficulty: Medium
Learning Objective: 1
26

55.
In situations when it is not possible to number all of the units in a population, we often use a _____ sample to approximate a random sample.
Systematic
BT: Ap
Bowerman - Chapter 01 #55
Difficulty: Medium
Learning Objective: 5
56.
A runs plot with an erratic pattern would indicate that the process is _____.
Out of control
BT: R
Bowerman - Chapter 01 #56
Difficulty: Medium
Learning Objective: 3
57.
If a unit is placed back into the population after being selected for a sample, we are sampling _____ replacement.
With
BT: R
Bowerman - Chapter 01 #57
Difficulty: Medium
Learning Objective: 2
58.
A _____ table is used to help select items for a random sample.
Random number
BT: R
Bowerman - Chapter 01 #58
Difficulty: Easy
Learning Objective: 2
59.
A process that is in statistical control does not necessarily imply that the process is __________ of meeting the customer requirements.
Capable
BT: U
Bowerman - Chapter 01 #59
Difficulty: Hard
Learning Objective: 3
27

60.
A consumer's yes/no reply to a survey question is what type of variable?
Qualitative
BT: Ap
Bowerman - Chapter 01 #60
Difficulty: Medium
Learning Objective: 4 and 5
61.
The change in daily price of a stock is what type of variable?
Quantitative
BT: Ap
Bowerman - Chapter 01 #61
Difficulty: Medium
Learning Objective: 4
62.
List two types of sampling methods.
Random and systematic
BT: U
Bowerman - Chapter 01 #62
Difficulty: Medium
Learning Objective: 5
63.
In a voluntary response sample, what types of opinions are usually expressed?
Strong/negative
BT: U
Bowerman - Chapter 01 #63
Difficulty: Hard
Learning Objective: 5
28

64.
Describe one weakness and one advantage to mailed surveys. low response rate, unsure person meant to complete survey completed the scale/ can send longer questionnaires.
BT: Analyze (An)
Bowerman - Chapter 01 #64
Difficulty: Hard
Learning Objective: 5
29

Chapter 01 An Introduction to Business Statistics Summary
Category
Bowerman - Chapter 01
BT: Analyze (An)
BT: Ap
BT: Apply (Ap)
BT: R
BT: U
Difficulty: Easy
Difficulty: Hard
Difficulty: Medium
Learning Objective: 1
Learning Objective: 1 and 4
Learning Objective: 2
Learning Objective: 3
Learning Objective: 4
Learning Objective: 4 and 5
Learning Objective: 5
6
41
14
1
12
1
6
12
18
1
42
12
17
1
8
# of Questions
64
30