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 100thshopper 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 100thshopper 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. B. C. D. E. Demonstrate the need for improvement Identify ways to make improvements Assess whether or not improvement activities have been successful Estimate the benefits of improvement All of the above BT: U Bowerman - Chapter 01 #12 Difficulty: Easy Learning Objective: 1 13. Ratio variables have the following unique characteristic: A. B. C. D. E. Meaningful order An inherently defined zero value Categorical in nature Predictable 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. B. C. D. E. Sampling with replacement Sampling by convience Using a systematic sample Using a voluntary response sample 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. B. C. D. E. The make of a TV A person's gender Fuel efficiency of a car Whether a person is an university graduate or not 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. B. C. D. E. Air temperature Bank account balance Daily sales in a store Whether a person has a traffic violation Value of company stock BT: Ap Bowerman - Chapter 01 #16 Difficulty: Medium Learning Objective: 4 17. Measurements from a population are called A. B. C. D. E. Statistics Observations Variables Processes 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. B. C. D. E. Random sampling Statistics Variable Existence Quality BT: R Bowerman - Chapter 01 #18 Difficulty: Easy Learning Objective: 3 19. The two types of quantitative variables are: A. B. C. D. E. Ordinal and ratio Interval and ordinal Nominative and ordinal Interval and ratio 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. B. C. D. Nominative Ordinal Interval 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. B. C. D. Nominative Ordinal Interval 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. B. C. D. Nominative Ordinal Interval 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. B. C. D. Nominative Ordinal Interval Ratio BT: U Bowerman - Chapter 01 #23 Difficulty: Medium Learning Objective: 4 18 24. __________ is a necessary component of a runs plot. A. B. C. D. E. Observation over time Qualitative variable Random sampling of the data Voluntary response data 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. B. C. D. E. Statistical process control Descriptive statistics Random sample Statistical inference 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. B. C. D. Ordinal Ratio Nominative 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. B. C. D. Nominative Ordinal Interval 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. B. C. D. E. A random sample selected without replacement A random sample selected with replacement A voluntary response sample A systematic sample 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. B. C. D. Ratio Ordinal Nominative 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. B. C. D. Nominative Ordinal Interval Ratio BT: Ap Bowerman - Chapter 01 #30 Difficulty: Medium Learning Objective: 4 31. Any characteristic of a population unit is a(n): A. B. C. D. E. Measurement Sample Observation Variable 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. B. C. D. E. Census Frame A sample A variable A list BT: R Bowerman - Chapter 01 #32 Difficulty: Medium Learning Objective: 1 21 33. The two types of qualitative variables are: A. B. C. D. E. Ordinal and ratio Interval and ordinal Nominative and ordinal Interval and ratio 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. B. C. D. E. Nominal Ordinal Interval Ratio 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. B. C. D. E. Focus group System Parliament Response 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. B. C. D. E. Convenient Nonrandom Underrepresented Random 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. B. C. D. E. Variation around Points above Data below Measures on 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. B. C. D. E. line runs scatter pie-chart 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. B. C. D. E. finite infinite actual probable infinite finite staged actual 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 # of Questions Bowerman - Chapter 01 64 BT: Analyze (An) 1 BT: Ap 8 BT: Apply (Ap) 1 BT: R 42 BT: U 12 Difficulty: Easy 17 Difficulty: Hard 6 Difficulty: Medium 41 Learning Objective: 1 14 Learning Objective: 1 and 4 1 Learning Objective: 2 12 Learning Objective: 3 12 Learning Objective: 4 18 Learning Objective: 4 and 5 1 Learning Objective: 5 6 30