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Chapter 03 Testbank

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Chapter 03
25. A normal population has 99.73 percent of the population measurements within __________
standard deviation(s) of the mean.
A. 1
B. 2
C. 3
D. 4
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
26. All of the following are measures of central tendency except the ____________.
A. range
B. mode
C. mean
D. median
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
27. Which percentile describes the first quartile, Q1?
A.
B.
C.
D.
25th
50th
75th
100th
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
28.
A.
B.
C.
D.
Which percentile describes the third quartile, Q3?
25th
50th
75th
100th
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
29. Which of the following is influenced the least by the occurrence of extreme values in a sample?
A. mean
B. median
C. geometric mean
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McGraw-Hill Education.
D. weighted mean
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
30. If a population distribution is skewed to the right, then, given a random sample from that
population, one would expect that the ____________.
A.
B.
C.
D.
median would be greater than the mean
mode would be equal to the mean
median would be less than the mean
median would be equal to the mean
AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
31. If the mean, median, and mode for a given population all equal 25, then we know that the shape
of the distribution of the population is ____________.
A.
B.
C.
D.
bimodal
skewed to the right
symmetrical
skewed to the left
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
32. A disadvantage of using grouping (a frequency table) with sample data is that
A. calculations involving central tendency and variation are more complicated than central tendency
and variation calculations based on ungrouped data.
B. the descriptive statistics are less precise than the descriptive statistics obtained using ungrouped
data.
C. the interpretation of the grouped data descriptive statistics is meaningless.
D. it is much more difficult to summarize the information than it is with the ungrouped data.
AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
33. When using Chebyshev'sTheorem to obtain the bounds for 99.73 percent of the values in a
population, the interval generally will be ___________ the interval obtained for the same
percentage if a normal distribution is assumed (Empirical Rule).
A. shorter than
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McGraw-Hill Education.
B. wider than
C. the same as
AACSB: Reflective Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
34. A quantity that measures the variation of a population or a sample relative to its mean is called
the ____________.
A.
B.
C.
D.
E.
range
standard deviation
coefficient of variation
variance
interquartile range
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
35. As a measure of variation, the sample ___________ is easy to understand and compute. It is
based on the two extreme values and is therefore a highly unstable measure.
A.
B.
C.
D.
E.
range
standard deviation
variance
interquartile range
coefficient of variation
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
36. A measurement located outside the upper limits of a box-and-whiskers display is ___________.
A. always in the first quartile
B. an outlier
C. always the largest value in the data set
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McGraw-Hill Education.
D. within the lower limits
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
37. Another name for the 50th percentile is the ___________.
A.
B.
C.
D.
E.
mean
first quartile
median
mode
third quartile
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
38. The measurement in a sample or a population that occurs most frequently is the ___________.
A.
B.
C.
D.
E.
mode
mean
median
outlier
average
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
39. The average of the squared deviations of the individual population measurement from the
population mean is the ___________.
A.
B.
C.
D.
E.
standard deviation
mean
variance
median
range
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
40. If the mean is greater than the median, then the distribution is ___________.
A. skewed right
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McGraw-Hill Education.
B. skewed left
C. symmetrical
D. bimodal
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
41. The point estimate of the _______________ is the positive square root of the sample variance.
A.
B.
C.
D.
E.
sample mean
sample standard deviation
range
median
population standard deviation
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
42. The ______________ is a quantity that measures the variation of a population or sample relative
to its mean.
A.
B.
C.
D.
E.
mean
standard deviation
range
coefficient of variation
Z-score
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
43. An interval that contains a specified percentage of the individual measurements is called a(n)
_______________ interval.
A.
B.
C.
D.
three-sigma
tolerance
normal
empirical
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
44. As the coefficient of variation _______________, risk ______________.
A. increases, decreases
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McGraw-Hill Education.
B. decreases, increases
C. increases, increases
D. remains constant, increases
AACSB: Reflective Thinking
Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
45. Which of the following is a measure of the strength of the linear relationship between x and y that
is dependent on the units in which x and y are measured.
A.
B.
C.
D.
covariance
correlation coefficient
slope
least squares line
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
46. If b0 = 32 and b1 = −4 and the predicted value of y is 14, what is the value of x?
A.
B.
C.
D.
−24.0
18.0
4.5
0.56
AACSB: Reflective Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
47. In the least squares line, ___________ is defined as rise/run.
A.
B.
C.
D.
correlation coefficient
predicted value of y
y-intercept
slope
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
48. In the calculation of a mean for grouped data, ___________ are used.
A. total sample size and sum of the midpoints of each class
B. total sample size and sum of the weighted midpoints
C. sum of the frequency of each class and the sum of the midpoints of each class
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McGraw-Hill Education.
D. sum of the frequency of each class and the sample midpoint
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
49. The arithmetic mean is ___________ larger than a weighted mean in a set of data that uses
unequal weights.
A. always
B. sometimes
C. never
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
50. The constant return used to forecast future wealth based on actual time periods and their returns
is the ____________.
A.
B.
C.
D.
grouped mean
geometric mean
weighted mean
arithmetic mean
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Geometric Mean
51. In a statistics class, the following 10 scores were randomly selected: 74, 73, 77, 77, 71, 68, 65,
77, 67, 66.
What is the mean?
A.
B.
C.
D.
E.
71.5
72.0
77.0
71.0
73.0
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
52. In a statistics class, the following 10 scores were randomly selected: 74, 73, 77, 77, 71, 68, 65,
77, 67, 66.
What is the median?
A. 71.5
B. 72.0
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McGraw-Hill Education.
C. 77.0
D. 71.0
E. 73.0
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
53. In a statistics class, the following 10 scores were randomly selected: 74, 73, 77, 77, 71, 68, 65,
77, 67, 66.
What is the mode?
A.
B.
C.
D.
E.
71.5
72.0
77.0
71.0
73.0
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
54. In a hearing test, subjects estimate the loudness (in decibels) of a sound, and the results are: 68,
67, 70, 71, 68, 75, 68, 62, 80, 73, 68.
What is the mean?
A.
B.
C.
D.
E.
70
75
68
71
80
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
55. In a hearing test, subjects estimate the loudness (in decibels) of a sound, and the results are: 68,
67, 70, 71, 68, 75, 68, 62, 80, 73, 68.
What is the median?
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McGraw-Hill Education.
A.
B.
C.
D.
E.
70
75
68
71
80
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
56. In a hearing test, subjects estimate the loudness (in decibels) of a sound, and the results are: 68,
67, 70, 71, 68, 75, 68, 62, 80, 73, 68.
What is the mode?
A.
B.
C.
D.
E.
70
75
68
71
80
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
57. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes): 118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45,
130, 118.
What is the mean?
A. 114.15
B. 118
C. 148
D. 45
E. 115.5
Mean = sum of values/n = 1484/13 = 114.15
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
58. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes): 118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45,
130, 118.
What is the median?
A. 114.15
B. 118
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McGraw-Hill Education.
C. 148
D. 45
E. 115.5
To calculate median, put data measurements in ascending order. The median for an odd
number of measurements is the middle measurement;median = 118.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
59. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes): 118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45,
130, 118.
What is the mode?
A. 114.15
B. 118
C. 148
D. 45
E. 115.5
Mode is the value(s) that appears most frequently; mode = 118 (occurs three times).
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
60. Quality control is an important issue at ACME Company, which manufactures light bulbs. To test
the life-hours of their light bulbs, they randomly sampled nine light bulbs and measured how many
hours they lasted: 378, 361, 350, 375, 200, 391, 375, 368, 321.
What is the mean?
A.
B.
C.
D.
E.
375
368
389.9
200
346.6
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
61. Quality control is an important issue at ACME Company, which manufactures light bulbs. To test
the life-hours of their light bulbs, they randomly sampled nine light bulbs and measured how many
hours they lasted: 378, 361, 350, 375, 200, 391, 375, 368, 321.
What is the median?
A. 375
B. 368
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McGraw-Hill Education.
C. 389.9
D. 200
E. 346.6
To calculate median, put data measurements in ascending order. The median for an odd
number of measurements is the middle measurement;median = 368.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
62. Quality control is an important issue at ACME Company, which manufactures light bulbs. Totest
the life-hours of their light bulbs, they randomly sampled nine light bulbs and measured how many
hours they lasted: 378, 361, 350, 375, 200, 391, 375, 368, 321.
What is the mode?
A. 375
B. 368
C. 389.9
D. 200
E. 346.6
Mode is the value(s) that appear most frequently; mode = 375 (occurs two times).
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Compute and interpret the mean, median, and mode.
Topic: Describing Central Tendency
63. Find the coefficient of variation for IQ tests with a mean of 100 and a standard deviation of 15.
A. 15.0
B. 6.7
C. 0.15
D. 1.5
E. 67
Coefficient of variation = (Stddev/mean) × 100 = (15/100) × 100 = 15
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
64. Find the z-score for an IQ test score of 142 when the mean is 100 and the standard deviation is
15.
A. 42
B. 2.8
C. 18.78
D. 1.27
E. −2.8
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McGraw-Hill Education.
Z-score = (x − mean)/stddev = (142 − 100)/15 = 42/15 = 2.8
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
65. Find the z-score for an IQ test score of 92 when the mean is 100 and the standard deviation is
15.
A. 0.53
B. 0.77
C. −0.77
D. −0.53
E. −8.00
Z-score = (x − mean)/stddev = (92 − 100)/15 = −8/15 = −0.53
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
66. Find the z-score for an IQ test score of 118 when the mean is 100 and the standard deviation is
15.
A. 1.2
B. 1.0
C. 18.0
D. −1.03
E. −1.2
Z-score = (x − mean)/stddev = (118 − 100)/15 = 18/15 = 1.2
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
67. Find the z-score for an IQ test score of 125 when the mean is 100 and the standard deviation is
15.
A. 25
B. 1.1
C. 1.67
D. −1.1
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McGraw-Hill Education.
E. −1.67
Z-score = (x − mean)/stddev = (125 − 100)/15 = 25/15 = 1.67
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
68. Using Chebyshev'sTheorem, find the interval that contains at least 93.75 percentof all
measurements when the mean = 2.549 and s = 1.828.
A. [−2.935, 8.033]
B. [−1.107, 6.205]
C. [−26.699, 31.797]
D. [2.435, 2.663]
E. [−4.763, 9.861]
1 − (1/k2) = .9375; 1/k2 = 1 − .9375; 1/k = √.0625; k = 4
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
69. According to a survey of the top 10 employers in a major city in the Midwest, a worker spends an
average of 413 minutes a day on the job. Suppose the standard deviation is 26.8 minutes, and
the time spent is approximately a normal distribution.
What are the times within which approximately 68.26 percent of all workers will fall?
A.
B.
C.
D.
E.
[394.8, 431.2]
[386.2, 439.8]
[372.8, 453.2]
[359.4, 466.6]
[332.6, 493.4]
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
70. According to a survey of the top 10 employers in a major city in the Midwest, a worker spends an
average of 413 minutes a day on the job. Suppose the standard deviation is 26.8 minutes and the
time spent is approximately a normal distribution.
What are the times within which approximately 99.73 percent of all workers will fall?
A. [305.8, 520.2]
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McGraw-Hill Education.
B.
C.
D.
E.
[386.2, 439.8]
[372.8, 453.2]
[359.4, 466.6]
[332.6, 493.4]
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
71. According to Chebyshev's Theorem, at least what proportion of the data will be within μ ± kσ for k
= 2?
A.
B.
C.
D.
E.
68%
50%
25%
75%
34%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
72. According to Chebyshev's Theorem, at least what proportion of the data will be within μ ± kσ for k
= 1.6?
A.
B.
C.
D.
E.
39%
58%
68%
61%
92%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
73. Using Chebyshev's Theorem, approximate the minimum proportion of the data that will be within
μ ± kσ for k = 3.2.
A.
B.
C.
D.
E.
90%
95%
84%
97%
10%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
74. According to Chebyshev'sTheorem, a range of how many standard deviations would include at
least 80 percentof the values?
A. 5.0
B. 2.2
C. 2.5
D. 1.6
E. 2.0
AACSB: Analytical Thinking
Blooms: Apply
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McGraw-Hill Education.
Difficulty: 3 Hard
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
75. In a statistics class, 10 scores were randomly selected with the following results (mean = 71.5):
74, 73, 77, 77, 71, 68, 65, 77, 67, 66.
What is the range?
A.
B.
C.
D.
E.
22.72
12.00
4.77
516.20
144.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
76. In a statistics class, 10 scores were randomly selected with the following results (mean = 71.5):
74, 73, 77, 77, 71, 68, 65, 77, 67, 66.
What is the variance?
A.
B.
C.
D.
E.
22.72
12.00
4.77
516.20
144.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
77. In a statistics class, 10 scores were randomly selected with the following results (mean = 71.5):
74, 73, 77, 77, 71, 68, 65, 77, 67, 66.
What is the standard deviation?
A.
B.
C.
D.
E.
22.72
12.00
4.77
516.20
144.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
78. In a hearing test, subjects estimate the loudness (in decibels) of a sound, and the results are
(mean = 70): 68, 67, 70, 71, 68, 75, 68, 62, 80, 73, 68.
What is the range?
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McGraw-Hill Education.
A.
B.
C.
D.
E.
18
4.73
22.40
324
6.76
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
79. In a hearing test, subjects estimate the loudness (in decibels) of a sound, and the results are
(mean = 70): 68, 67, 70, 71, 68, 75, 68, 62, 80, 73, 68.
What is the variance?
A.
B.
C.
D.
E.
18
4.73
22.40
324
6.76
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
80. In a hearing test, subjects estimate the loudness (in decibels) of a sound, and the results are
(mean = 70): 68, 67, 70, 71, 68, 75, 68, 62, 80, 73, 68.
What is the standard deviation?
A.
B.
C.
D.
E.
18
4.73
22.40
324
6.76
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
81. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes;mean = 114.15):
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118.
What is the range?
3-16
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
A.
B.
C.
D.
E.
103
23.62
557.97
128.8
115
Range = largest value − smallest value = 148 − 45 = 103
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
82. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes;mean = 114.15):
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118.
What is the variance?
A. 103
B. 23.62
C. 557.97
D. 128.8
E. 115
Variance = [Σ (x− mean)2]/(n − 1) =6695.69/12 = 557.97
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
83. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes;mean = 114.15):
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118.
What is the standard deviation?
A. 103
B. 23.62
3-17
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
C. 557.97
D. 128.8
E. 115
Std Dev = √Variance = √[(Σ (x− mean)2)/(n − 1)] = √(6695.69/12)= √557.97 = 23.62
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
84. Quality control is an important issue at ACME Company, which manufactures light bulbs. To test
the life-hours of their light bulbs, they randomly sampled nine light bulbs and measured how many
hours they lasted (mean = 346.6).
378, 361, 350, 375, 200, 391, 375, 368, 321
What is the range?
A. 342.43
B. 3424.3
C. 58.5
D. 191
E. 10,609
Range = largest value − smallest value = 391 − 200 = 191
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
85. Quality control is an important issue at ACME Company, which manufactures light bulbs. To test
the life hours of their light bulbs, they randomly sampled nine light bulbs and measured how many
hours they lasted (mean = 346.6).
378, 361, 350, 375, 200, 391, 375, 368, 321
What is the variance?
A. 342.43
B. 3424.3
C. 58.5
D. 191
E. 10,609
Variance = [Σ (x− mean)2]/(n − 1) =27,394.24/8 = 3424.28
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
86. Quality control is an important issue at ACME Company, which manufactures light bulbs. To test
the life-hours of their light bulbs, they randomly sampled nine light bulbs and measured how many
hours they lasted (mean = 346.6).
378, 361, 350, 375, 200, 391, 375, 368, 321
What is the standard deviation?
A. 342.43
B. 3424.3
C. 58.5
D. 191
E. 10,609
3-18
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Std Dev = √Variance = √[(Σ (x− mean)2)/(n − 1)] = √(27,394.24/8) = √3424.28 = 58.5
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
87. In a statistics class, 10 scores were randomly selected, with the following results: 74, 73, 77, 77,
71, 68, 65, 77, 67, 66.
What is the 90th percentile?
A.
B.
C.
D.
E.
77
73
74
67
65.9
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
88. In a statistics class, 10 scores were randomly selected with the following results: 74, 73, 77, 77,
71, 68, 65, 77, 67, 66.
What is the third quartile?
A.
B.
C.
D.
E.
65.9
67.3
66.75
73.85
77.0
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
89. In a statistics class, 10 scores were randomly selected with the following results: 74, 73, 77, 77,
71, 68, 65, 77, 67, 66.
What is the first quartile?
A.
B.
C.
D.
E.
65.9
67.3
67.0
73.85
77.0
3-19
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
90. In a statistics class, 10 scores were randomly selected, with the following results:
74, 73, 77, 77, 71, 68, 65, 77, 67, 66.
What is the 10th percentile?
A.
B.
C.
D.
E.
65.5
67.3
66.75
73.85
77.0
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
91. In a statistics class, 10 scores were randomly selected with the following results: 74, 73, 77, 77,
71, 68, 65, 77, 67, 66.
What is the 65th percentile?
A.
B.
C.
D.
E.
65.5
67.3
66.75
74.0
77.0
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
92. In a statistics class, 10 scores were randomly selected with the following results: 74, 73, 77, 77,
71, 68, 65, 77, 67, 66.
What is the IQR?
A.
B.
C.
D.
E.
12.00
5.25
10
5.00
11.00
3-20
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
93. In a statistics class, 10 scores were randomly selected with the following results: 74, 73, 77, 77,
71, 68, 65, 77, 67, 66.
What are the lower and upper limits?
A.
B.
C.
D.
E.
67, 77
57, 87
37, 107
52, 92
47, 97
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
94. The company financial officer was interested in the average cost of PCs that had been purchased
in the past six months. She took a random sample of the price of 10 computers, with the following
results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What is the 90th percentile?
A.
B.
C.
D.
E.
$1,446.50
$3,449.00
$3,415.75
$4,000.00
$5,060.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
95. The company financial officer was interested in the average cost of PCs that had been purchased
in the past six months. She took a random sample of the price of 10 computers, with the following
results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What is the third quartile?
A. $1,446.50
B. $2,617.00
C. $3,415.75
3-21
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
D. $3,449.00
E. $4,212.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
96. The company financial officer was interested in the average cost of PCs that had been purchased
in the past six months. She took a random sample of the price of 10 computers, with the following
results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What is the first quartile?
A. $1,446.50
B. $2,995.00
C. $3,415.75
D. $3,587.00
E. $4,212.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
97. The company financial officer was interested in the average cost of PCs that had been purchased
in the past six months. She took a random sample of the price of 10 computers, with the following
results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What is the 10th percentile?
A. $1,304.50
B. $2,617.00
C. $3,415.75
D. $3,587.00
E. $4,212.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
98. The company financial officer was interested in the average cost of PCs that had been purchased
in the past six months. She took a random sample of the price of 10 computers, with the following
results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What is the 65th percentile?
A. $1,446.50
B. $2,617.00
C. $3,445.00
3-22
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
D. $3,587.00
E. $4,212.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
99. The company financial officer was interested in the average cost of PCs that had been purchased
in the past six months. She took a random sample of the price of 10 computers, with the following
results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What is the IQR?
A.
B.
C.
D.
E.
681
454
1362
255
6120
IQR = Q3− Q1 = 3449 − 2995 = 454
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
100. The company financial officer was interested in the average cost of PCs that had been
purchased in the past six months. She took a random sample of the price of 10 computers, with
the following results.
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000
What are the lower and upper limits?
A.
B.
C.
D.
E.
2541, 3903
2768, 3676
2087, 4357
2314, 4130
1633, 2087
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
101. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What is the 90th percentile?
3-23
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
A.
B.
C.
D.
E.
100.8
118
130
112
45
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
102. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What is the third quartile?
A.
B.
C.
D.
E.
100.8
118
130
112
121
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
103. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What is the first quartile?
A.
B.
C.
D.
E.
100.8
118
130
116
45
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
104. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What is the 10th percentile?
A. 99
B. 120
C. 130
3-24
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
D. 112
E. 45
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
105. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What is the 65th percentile?
A.
B.
C.
D.
E.
99
120
130
112
45
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
106. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What is the IQR?
A.
B.
C.
D.
E.
103
5
28
30
7
IQR = Q3− Q1 = 121 − 116 = 5
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
107. The local amusement park was interested in the average wait time at their most popular roller
coaster at the peak park time (2 p.m.). They selected 13 patrons and had them get in line
between 2 and 3 p.m. Each was given a stopwatch to record the time they spent in line. The
times recorded were as follows (in minutes).
118, 124, 108, 116, 99, 120, 148, 118, 119, 121, 45, 130, 118
What are the lower and upper limits?
3-25
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
A. 80.5, 154.00
B. 108.5, 128.5
C. 127.75, 138.25
D. 80.5, 154.00
E. 143.50, 154.00
F. 127.75, 138.25
G. 15.75, 31.50
H. 143.50, 154.00
I. 15.75, 31.50
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
108. Compute the population variance of these data:
16,18,23,21,17,16,24,23,9,17,11,16,22,10,15,14.
A.
B.
C.
D.
E.
21.9
3.87
20.5
17.0
3.625
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
109. If the median of a data set is 760, the upper quartile is 950, and the lower quartile is 650, what is
the interquartile range?
A. 300
B. 190
C. 110
D. 150
E. 910
Interquartile range = 950 − 650 = 300
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
110. Compute the sample standard deviation of the data set 6,4,2,1,4,1.
A.
B.
C.
D.
E.
1.83
2.00
1.41
3.33
4.00
3-26
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
111. The average lateness for one of the top airline companies is 10 minutes. The variance of the
lateness measure is calculated as 9. An airplane arrived 13 minutes after the stated arrival time.
Calculate the z-score for the lateness of this particular airplane.
A.
B.
C.
D.
E.
0.33
0.58
1.33
0.44
1.00
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Compute and interpret the range, variance, and standard deviation.
Topic: Measures of Variation
112. The average life of Canadian women is 73.75 years, and the standard deviation of the life
expectancy of Canadian women is 6.5 years. Using Chebyshev's Theorem, determine the
minimum percentage of women in Canada whose life expectancy is between 64 and 83.5 years.
A.
B.
C.
D.
E.
93.17%
68.26%
55.56%
88.89%
33.33%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
113. The average life of Canadian women is 73.75 years, and the standard deviation of the life
expectancy of Canadian women is 6.5 years. Based on Chebyshev's Theorem, determine the
upper and lower bounds on the average life expectancy of Canadian women such that at least
90 percent of the population is included.
A.
B.
C.
D.
E.
[12.09 135.41]
[8.75 138.75]
[53.20 94.30]
[66.38 81.13]
[67.25 80.25]
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Use the Empirical Rule and Chebyshev's Theorem to describe variation.
Topic: Measures of Variation
114. The following table shows the Price-to-Earnings ratio for a stereo equipment manufacturing
company between 1998 and 2002.
3-27
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Determine the percentage change in the P/E ratios from 1998 to 1999.
A.
B.
C.
D.
E.
15.07%
17.74%
20.72%
−17.74%
−15.07%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
115. The following table shows the Price-to-Earnings ratio for a stereo equipment manufacturing
company between 1998 and 2002.
Determine the percentage change in the P/E ratios from 1999 to 2000.
A.
B.
C.
D.
E.
23.97%
31.53%
27.26%
−31.53%
−23.97%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
116. The following table shows the Price-to-Earnings ratio for a stereo equipment manufacturing
company between 1998 and 2002. The annual percentage growth rate of the P/E ratios is also
3-28
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
calculated and given below.
Calculate the geometric mean growth rate increase or decrease over the period from 1998 to
2002.
A.
B.
C.
D.
E.
−.2592
−.1397
−.1816
.8616
.7417
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
117. Suppose that a company's annual sales were $1,200,000 in 1999. The annual growth rate of
sales from 1999 to 2000 was 16 percent, from 2000 to 2001 it was −5 percent, and from 2001 to
2002 it was 22 percent.
The geometric mean growth rate of sales over this three-year period is calculated as 10.37
percent. Use the geometric mean growth rate and determine the forecasted sales for 2004.
A.
B.
C.
D.
E.
1,780,678
1,200,014
1,965,337
1,613,371
1,422,197
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
118. The following frequency table summarizes the ages of 60 shoppers at the local grocery store.
3-29
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The sample mean for the above frequency table is calculated as 36.25. Calculate the
approximate sample standard deviation for this data set.
A.
B.
C.
D.
E.
181.08
184.15
26.83
13.46
13.57
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
119. Personnel managers usually want to know where a job applicant ranked in his or her graduating
class. With a grade point average of 3.83, Michelle Robinson graduated above the 93rd
percentile of her graduating class. What is the percentile rank of a student whose GPA was the
median GPA.
A.
B.
C.
D.
E.
25th
50th
75th
10th
93rd
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-04 Compute and interpret percentiles, quartiles, and box-and-whiskers displays.
Topic: Percentiles, Quartiles, and Box-and-Whisker Displays
120. The Rivertown city council is attempting to choose one of four sites (A, B, C, or D) as the location
for its new emergency facility. After the new emergency facility becomes available for service,
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the current emergency facility will be shut down. The project manager has estimated the
following response times in minutes from each of the proposed sites to the four areas that must
be served by the emergency facility.
The number of emergency runs from the current emergency facility to each of the four areas
over the past year is as follows:
Compute the weighted mean response time from the proposed locations and determine which
proposed site should be selected for the new emergency facility.
A.
B.
C.
D.
site A
site B
site C
site D
AACSB: Analytical Thinking
Blooms: Analyze
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
3-31
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McGraw-Hill Education.
121. Researchers wish to study fuel consumption rates based on speed. The data from the test car
at 10 speeds are below.
It can be shown that for these data:
Calculate the sample covariance.
A.
B.
C.
D.
E.
−270.2
−30.02
−27.02
−74.58
−82.86
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
3-32
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122. Researchers wish to study fuel consumption rates based on speed. The data from the test car
at 10 speeds are below.
It can be shown that for these data:
Calculate b1.
−0.1148
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McGraw-Hill Education.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
123. Researchers wish to study fuel consumption rates based on speed. The data from 10 cars are
below.
It can be shown that for these data:
Calculate the sample correlation coefficient.
A.
B.
C.
D.
E.
0.12
−0.12
−0.36
−0.34
0.34
r = sxy/(sx sy) = −30.02/88.17 = −0.34
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
3-34
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124. In a study of the factors that affect success in economics, data were collected for 8 business
students. Scores on a calculus placement test are given with economics final exam scores. The
data are below:
It can be shown that for these data:
Calculate the sample covariance.
A.
B.
C.
D.
E.
0.12
−0.12
−0.36
−0.34
0.34
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
3-35
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McGraw-Hill Education.
125. In a study of the factors that affect success in economics, data were collected for 8 business
students. Scores on a calculus placement test are given with economics final exam scores. The
data are below.
It can be shown that for these data:
Calculate the sample correlation coefficient.
A.
B.
C.
D.
E.
0.15
0.11
0.39
−0.39
−0.11
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
3-36
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McGraw-Hill Education.
126. In a study of employee stock ownership plans, data were collected at seven companies on
satisfaction with the plan and the amount of organization commitment.
It can be shown that for these data:
Calculate b1.
A.
B.
C.
D.
E.
0.15
0.11
0.39
−0.39
−0.11
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
3-37
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McGraw-Hill Education.
127. In a study of employee stock ownership plans, data were collected at seven companies on
satisfaction with the plan and the amount of organization commitment.
It can be shown that for these data
Calculate b1.
0.851
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-05 Compute and interpret covariance, correlation, and the least squares line.
Topic: Covariance, Correlation, and the Least Squares Line
3-38
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McGraw-Hill Education.
128. In an analysis of the relationship between the average weekly temperature in a major city and
the per person consumption of ice cream (pints), a least squares line is defined by the equation
5.72 + .004x. Predict the average amount of ice cream consumed when it is 50° outside.
5.92 pints
y = 5.72 + .004(50) = 5.92
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Covariance, Correlation, and the Least Squares Line
Topic: Weighted Means and Grouped Data
129. From the following table of values and corresponding sample sizes, calculate the weighted
mean.
4.1
(3.1 × 9 + 5.1 × 7 + 4.2 × 10 + 2.5 × 2 + 4.8 × 6)/34 = 139.4/34 = 4.1
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
130. Using grouped data of 14 classes with a sample mean of 51 and a sample variance of 6.42,
calculate the group sampled standard deviation.
2.53
√6.42 = 2.53
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
3-39
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McGraw-Hill Education.
131. A random sample of 60 students in the business statistics course answered a survey on the
average number of hours they spent on statistics each week. Unfortunately, the original data
were lost and all that remains is the frequency table below. From these data, calculate the
estimated sample mean.
6.97
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
3-40
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McGraw-Hill Education.
132. A random sample of 60 students in the business statistics course answered a survey on the
average number of hours they spent on statistics each week. Unfortunately, the original data
were lost and all that remains is the frequency table below. From these data, calculate the
estimated sample standard deviation.
4.714
Sample variance = (1310.934)/(n − 1) = 1310.934/59 = 22.21922
Sample standard deviation = √22.21922 = 4.713727
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
3-41
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133. A real estate appraiser is gathering housing sales data by street in the neighborhood in
preparation for his next job. Listed below are the six streets and the average sales price and the
houses sold in the last 12 months. Calculate the mean sales price for the neighborhood.
$213,602
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
134. A company CEO asked the marketing research department to find the average age of
consumers who bought the most profitable product made by the company. From survey data
gathered two years ago, the researchers found the following table. Calculate the average age to
give to the CEO.
3-42
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McGraw-Hill Education.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
135. Find the weighted mean per capita income for the following random sample of six cities in the
Midwest.
$31,432
AACSB: Analytical Thinking
Blooms: Apply
3-43
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McGraw-Hill Education.
Difficulty: 2 Medium
Learning Objective: 03-06 Compute and interpret weighted means and the mean standard deviation of grouped data.
Topic: Weighted Means and Grouped Data
136. An initial investment of $10,000 is observed over 3 years with a geometric mean return at the
end of year 3 of 0.512. Determine the value of the investment after 3 years.
$34,566
$10,000 (1 + .512)3 = 10,000(3.4566) = 34,566
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
137. An initial investment of $10,000 has a value of $7,382 at the end of year 1. What is the rate of
return for the first year?
−26.18%
R1 = ((7382 − 10,000)/10,000) = −2618/10,000 = −.2618 × 100 = −26.18%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
138. An initial investment of $10,000 has a value of $7,382 at the end of year 1, a rate of return of
62.43 percent for year 2, and a geometric mean return at the end of year 3 of 0.512. Determine
the rate of return for the third year.
188.3% for R3
Rg = .512 = (3√(R1 + 1)(R2 + 1)(R3 + 1)) − 1
1.512 = (3√(R1 + 1)(R2 + 1)(R3 + 1))
1.512 = 3√(-.2618 + 1)(.6243 + 1)(R3 + 1)
3.457 = (1.199)(R3 + 1)
2.883 = R3 + 1
1.883 = R3
R3 = 1.883 × 100 = 188.3%
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
3-44
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139. At the end of 2007, the IRA owned by Joe Smith had a value of $1.2 million. With a rate of return
of −29.75 percent in 2008 and a rate of return of 2.98 percent in 2009, calculate the geometric
mean rate of return for the two-year period.
−.1495
Rg = √[(1 − .2975)(1 + .0298)] − 1 = −.1495
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
140. The geometric mean growth rate of sales for used cars in a geographic area from 2005 to 2009
was 16.42 percent. Annual sales in 2005 were $14.2 million. Find the ending value of sales after
this four-year period.
$26.09 million
14.2(1 + .1642)4 = 26.09
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
141. Suppose that annual sales for a company were $3.6 million at the beginning of a three-year
period and at the end had increased to $6.1 million. Find the geometric growth rate of sales.
.19
3.6(1 + Rg)3 = 6.1
(1 + Rg)3 = 1.69
(1 + Rg) = 1.1911
Rg = .1911
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
3-45
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142. The rate of return for each of the past four years on a market fund are R1 = 2.4%, R2 = 1.0%, R3
= −3.2%, and R4 = 0.5%. Find the geometric mean rate of return.
.0015
Rg = (4√(1.024)(1.01)(.968)(1.005)) − 1
= (4√1.0062) − 1
= 1.0015 − 1 = .0015
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-07 Compute and interpret the geometric mean.
Topic: Geometric Mean
143. A local grocery market is studying whether to offer a loyalty program to its customers. In its final
analyses the following groups are being used to categorize loyalty card customers: family
income and number of children. Using the classification tree below, estimate the percentage of
customers with an income of $50,000 with 2 children who would use a loyalty card
40%
Tree moves from Yes with income > 35,000 to yes have 1 or more children. This yields a
probability of .4 or a percentage of 40% of the customers who would use a loyalty card.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-08 Interpret the information provided by a decision tree.
Topic: Decision Trees: Classification Trees and Regression Trees
3-46
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McGraw-Hill Education.
144. A manufacturer of Product X has developed a model for predicting monthly sales of their
product based on the sales from the same month of the previous year and the forecasted
average daily temperature for the month. Using the regression tree below based on a random
sample of 30 observations, predict sales for a future where the previous year’s monthly sales
were $15 million dollars and the forecasted average daily temperature for the month will be 45
degrees.
$15.4 Million
Monthly sales < 18.1; then monthly sales < 16.1, which yields mean of 15.4.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-08 Interpret the information provided by a decision tree.
Topic: Decision Trees: Classification Trees and Regression Trees
3-47
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McGraw-Hill Education.
145. A manufacturer of Product X has developed a model for predicting monthly sales of their
product based on the sales from the same month of the previous year and the forecasted
average daily temperature for the month. Using the regression tree below based on a random
sample of 30 observations predict sales for a future where the previous year’s monthly sales
were $21.2 million dollars and the forecasted average daily temperature for the month will be
45 degrees.
$18.3 Million
Monthly Sales ≥ 18.1; then Temp < 50 which yields mean of 18.3
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-08 Interpret the information provided by a decision tree.
Topic: Decision Trees: Classification Trees and Regression Trees
3-48
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McGraw-Hill Education.
146. Following a factor analysis of 15 personality characteristic ratings of politicians by a random
sample of 40,000 registered voters, the following table of the first 7 factors and their
corresponding eigenvalues and percentage of explained variation was produced. Which factors
should an analyst choose when defining the characteristics of politicians?
Factors 1 , 2, 3, and 4
Use factors that have an eigenvalue greater than 1
AACSB: Analytical Thinking
AACSB: Reflective Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-10 Interpret the information provided by factor analysis.
Topic: Factor Analysis
3-49
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McGraw-Hill Education.
147. Interpret a lift ratio of .9259.
7.41 percent of total population less likely to follow recommendation than a random
customer.
A lift ratio is calculated by dividing confidence percentage by support percentage. The
difference from 1 is the percentage of a customer base that is or is not following
recommendation from association rules.
AACSB: Reflective Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-11 Interpret the information provided by association roles.
Topic: Association Rules
148. Interpret a lift ratio of 1.111.
11.1 percent of total population more likely to follow recommendation than a random
customer.
A lift ratio is calculated by dividing confidence percentage by support percentage. The
difference from 1 is the percentage of a customer base that is or is not following
recommendation from association rules.
AACSB: Reflective Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-11 Interpret the information provided by association roles.
Topic: Association Rules
3-50
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McGraw-Hill Education.
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