ECON 2320 Assignment/Practice Questions -- Chapter Two Multiple Choice Questions. 1). (i) Simple bar charts may be constructed either horizontally or vertically. (ii). A frequency polygon is a very useful graphic technique when comparing two or more distributions (iii) A cumulative frequency distribution is used when we want to determine how many observations lie above or below certain values. A) B) C) D) E) 2) a. b. c. d. (i), (ii) and (iii) are all correct statements. (i) and, (ii) are correct statements but not (iii). (i) and, (iii) are correct statements but not (ii). (ii) and, (iii) are correct statements but not (i). All statements are false. Qualitative data can be graphically represented by using a(n) histogram frequency polygon ogive bar graph 3). The percent frequency of a class is computed by a. multiplying the relative frequency by 10 b. dividing the relative frequency by 100 c. multiplying the relative frequency by 100 d. adding 100 to the relative frequency 4) A histogram is said to be skewed to the left if it has a a. longer tail to the right b. shorter tail to the right c. shorter tail to the left d. longer tail to the left 5) A cumulative relative frequency distribution shows a. the proportion of data items with values less than or equal to the upper limit of each class b. the proportion of data items with values less than or equal to the lower limit of each class c. the percentage of data items with values less than or equal to the upper limit of each class d. the percentage of data items with values less than or equal to the lower limit of each class 6) A frequency distribution is a. a tabular summary of a set of data showing the relative frequency b. a graphical form of representing data c. a tabular summary of a set of data showing the frequency of items in each of several nonover lapping classes d. a graphical device for presenting qualitative data 1 Exhibit 2-1 The numbers of hours worked (per week) by 400 statistics students are shown below. Number of hours Frequency 0- 9 20 10 - 19 80 20 - 29 200 30 - 39 100 7) Refer to Exhibit 2-1. The cumulative relative frequency for the class of 20 - 29 a. is 300 b. is 0.25 c. is 0.75 d. is 0.5 8) Refer to Exhibit 2-1. The percentage of students working 19 hours or less is a. 20% b. 25% c. 75% d. 80% 9). There are two types of variables – quantitative and qualitative. A Qualitative variable is nonnumeric and we are usually interested in the number or percent of the observations from each category. (iii) Qualitative variables can be further divided into discrete and continuous variables. (L) (i) (ii) A) B) C) D) E) (i), (ii) and (iii) are all correct statements. (i) and, (ii) are correct statements but not (iii). (i) and, (iii) are correct statements but not (ii). (ii) and, (iii) are correct statements but not (i). All statements are false. 10). The main purpose of descriptive statistics is to: (Lind) A) Summarize data in a useful and informative manner. B) Make inferences about a population. C) Determine if the data adequately represents the population. D) Gather or collect data. 11) .Colleen Waite, Director of General Canadian Sales, is concerned by a downward sales trend. Specifically, their customer base is stable at 2,200, but they are purchasing less each year. She orders her staff to search for causes of the downward trend by selecting a focus group of 50 customers. (Lind) A) The focus group of 50 customers represents a sample. B) The focus group of 50 customers represents a population. C) The focus group of 50 customers represents an inferential statistic. 2 D) The focus group of 50 customers represents a census. 12). What type of data is the number of robberies reported in your city? (Lind) A) B) C) D) E) Attribute Continuous Discrete Qualitative None of the choices are correct 13). A bank asks customers to evaluate the drive-thru service as to good, average, or poor. Which level of measurement is this classification? (Lind) A) Nominal B) Ordinal C) Interval D) Ratio E) None of the choices are correct 14) If Gallup, Harris and other pollsters asked people to indicate their political party affiliation Liberal, Conservative or NDP, the data gathered would be an example of which scale of measurement? (Lind) A) Nominal B) Ordinal C) Interval D) Ratio E) None of the choices are correct 15). (i) (ii) (iii) If we select 100 persons out of 25,000 registered voters and question them about candidates and issues, the 100 persons are referred to as the population. The order that runners finish in a race would be an example of continuous data. Another name for inductive statistics is descriptive statistics. (Lind) A) B) C) D) E) (i), (ii) and (iii) are all correct statements. (i) and, (ii) are correct statements but not (iii). (i) and, (iii) are correct statements but not (ii). (ii) and, (iii) are correct statements but not (i). All statements are false. 16 (i) A frequency distribution is grouping of data into classes showing the number of observations in each class. (ii) The midpoint of a class, which is also called a class mark, is halfway between the lower and upper limits. (iii) A class interval, which is the width of a class, can be determined by subtracting the lower limit of a class from the lower limit of the next higher class. 3 A) B) C) D) E) (i), (ii) and (iii) are all correct statements. (i) and, (ii) are correct statements but not (iii). (i) and, (iii) are correct statements but not (ii). (ii) and, (iii) are correct statements but not (i). All statements are false. 17. (i) A frequency distribution is grouping of data into classes showing the number of observations in each class. (ii) In constructing a frequency distribution, you should try to have open-ended classes such as “Under $100” and “$1,000 and over”. (iii) A cumulative frequency distribution is used when we want to determine how many observations lie above or below certain values. A) B) C) D) E) (i), (ii) and (iii) are all correct statements. (i) and, (ii) are correct statements but not (iii). (i) and, (iii) are correct statements but not (ii). (ii) and, (iii) are correct statements but not (i). All statements are false. 18. (i) Simple bar charts may be constructed either horizontally or vertically. (ii). A frequency polygon is a very useful graphic technique when comparing two or more distributions (iii) A cumulative frequency distribution is used when we want to determine how many observations lie above or below certain values. A) B) C) D) E) (i), (ii) and (iii) are all correct statements. (i) and, (ii) are correct statements but not (iii). (i) and, (iii) are correct statements but not (ii). (ii) and, (iii) are correct statements but not (i). All statements are false. Exhibit 2-2 A survey of 800 college seniors resulted in the following crosstabulation regarding their undergraduate major and whether or not they plan to go to graduate school. Graduate School Yes No Total Undergraduate Major Business Engineering 70 84 182 208 252 292 Others 126 130 256 Total 280 520 800 19. Refer to Exhibit 2-2. What percentage of the students does not plan to go to graduate school? a) 280 b) 520 c) 65 d) 32 20. Refer to Exhibit 2-2. What percentage of the students' undergraduate major is engineering? a. 292 b. 520 4 c. 65 d. 36.5 21. Refer to Exhibit 2-2. Of those students who are majoring in business, what percentage plans to go to graduate school? a. 27.78 b. 8.75 c. 70 d. 72.22 22.The monthly salaries of a sample of 100 employees were rounded to the nearest ten dollars. They ranged from a low of $1,040 to a high of $1,720. If we want to condense the data into seven classes, what is the most convenient class interval? A) $ 50 B) $100 C) $150 D) $200 E) None of the choices are correct 23.Which of the following would be most helpful if you wished to construct a pie chart? A) a frequency distribution B) a relative frequency distribution C) a cumulative frequency distribution D) an ogive E) a clustered bar chart 24. a. b. c. d. 25. a. b. c. d. The relative frequency of a class is computed by dividing the cumulative frequency of the class by n dividing n by cumulative frequency of the class dividing the frequency of the class by n dividing the frequency of the class by the number of classes When a histogram has a longer tail to the right, it is said to be symmetrical skewed to the left skewed to the right none of these alternatives is correct 26) The sum of frequencies for all classes will always equal a. 1 b. the number of elements in a data set c. the number of classes d. a value between 0 and 1 27. Data that provide labels or names for categories of like items are known as a. qualitative data 5 b. quantitative data c. label data d. category data Exhibit 2-3 Michael's Rent-A-Car, a national car rental company, has kept a record of the number of cars they have rented for a period of 80 days. Their rental records are shown below: Number of Cars Rented 0 - 19 20 - 39 40 - 59 60 - 79 80 - 99 Number of Days 5 15 30 20 _10_ Total 80 28. Refer to Exhibit 2-3. If one develops a cumulative frequency distribution for the above data, the last class will have a frequency of a. 10 b. 100 c. 0 to 100 d. 80 29. Refer to Exhibit 2-3. The percentage of days in which the company rented at least 40 cars is a. 37.5% b. 62.5% c. 90.0% d. 75.0% 30. Refer to Exhibit 2-3. The number of days in which the company rented less than 60 cars is a. 20 b. 30 c. 50 d. 60 Answer Key – Multiple Choice Questions Chapter 2 1 A 2D 3C 4D 5A 6C 7C 8B 9B 10 A 11 A 12 C 13 B 14 A 15 E 16 A 17 C 18 A 19 C 20 D 21 A 22 B 23 B 24 C 25 C 26 B 27 A 28 D 29 D 30 C 6 Non Multiple Choice Questions Questions 1 to 3 have no answer key. You should discuss these questions with your course mate(s) to figure out the answers. 1). DiCarlo’s Café has been serving an Italian soda drink with a vanilla flavouring that is very popular with its customers. Joe DiCarlo is interested in customer preferences for some new flavours. Hevasks 100 of his regular customers to take a taste test and pick the one they like the best. a) Is the data quantitative or qualitative? Why? b) Develop a bar chart to depict the information. c) Develop a pie chart using the relative frequencies. d) Develop a line chart to depict the information. e) Which chart best portrays the information? Why? Flavour Vanilla Cherry Lemon Orange Total Number 40 25 20 15 100 2). The annual imports of a selected group of electronics suppliers are shown. a) Portray the imports as a histogram. b) Portray the imports as a relative frequency polygon. c) Summarize the important facets of the distribution (such as low and high, concentration, etc.) Imports ($ Millions) 2 to under 5 5 to under 8 8 to under 11 11 to under 14 14 to under 17 Number of Suppliers 6 13 20 10 1 3). A sample of the hourly wages of 15 employees at Food City Supermarkets was organized into the table shown below. a) What is the table called? b) Develop a less-than and more-than cumulative frequency distribution and portray the distribution in cumulative frequency polygons. c) Based on the cumulative frequency polygon, how many employees earn $9 per hour or less? Half of the employees earn an hourly wage of how much or more? Four employees earn how much or less? d) Hourly Wages ($) Number of Employees 7 $6 to under $8 $8 to under $10 $10 to under $12 $12 to under $14 3 7 4 1 4).The following data set shows the number of hours of sick leave that some of the employees of Bastien's, Inc. have taken during the first quarter of the year (rounded to the nearest hour). 19 23 36 12 59 a. b. c. d. e. f 22 47 25 20 39 27 11 34 28 48 24 55 16 29 32 28 25 45 21 40 12 42 49 10 31 How many classes would you recommend? What class interval would you suggest? Develop a frequency distribution for the above data. Develop a relative frequency distribution and a percent frequency distribution for the data. Develop a cumulative frequency distribution. How many employees have taken less than 40 hours of sick leave? (There is no #5 Question) 6). Below you are given the statistics examination scores of 20 students. 52 63 92 90 99 72 58 75 a. b. c. d. 92 76 65 74 86 95 79 56 84 88 80 99 Construct a frequency distribution for this data. Let the first class be 50 - 59 and draw a histogram. Construct a cumulative frequency distribution. Construct a relative frequency distribution. Construct a cumulative relative frequency distribution. 7). There are 800 students in the School of Business Administration. There are four majors in the School: Accounting, Finance, Management, and Marketing. The following shows the number of students in each major. Major Accounting Finance Management Marketing Number of Students 240 160 320 80 Develop a percent frequency distribution. 8 8). For the following observations, plot a scatter diagram and indicate what kind of relationship (if any) exist between x and y. x 2 6 3 5 4 y 7 19 9 17 11 9). A survey of 400 college seniors resulted in the following crosstabulation regarding their undergraduate major and whether or not they plan to go to graduate school. Undergraduate Major Graduate School a. b. c. d. Business Engineering Others Total Yes 35 42 63 140 No 91 104 65 260 Total 126 146 128 400 Are a majority of the seniors in the survey planning to attend graduate school? Which discipline constitutes the majority of the individuals in the survey? Compute row percentages and comment on the relationship between the students' undergraduate major and their intention of attending graduate school. Compute the column percentages and comment on the relationship between the students' intention of going to graduate school and their undergraduate major. Answer Keys for Chapter 2 Answers to question 4 a) 5 b) 10 a. Hours of Sick Leave Taken 10 - 19 20 - 29 30 - 39 40 - 49 50 - 59 Freq. 6 11 5 6 2 b. Relative Freq. 0.20 0.37 0.16 0.20 0.07 b. Percent Freq. 20 37 16 20 7 c. Cum. Freq. 6 17 22 28 30 d) 22 9 Answers to question 6 a. Score 50 - 59 60 - 69 70 - 79 80 - 89 90 - 99 Total Frequency 3 2 5 4 6 20 Answers to question 7 Major Accounting Finance Management Marketing b. c. Cumulative Frequency 3 5 10 14 20 Relative Frequency 0.15 0.10 0.25 0.20 0.30 1.00 d. Cumulative Relative Frequency 0.15 0.25 0.50 0.70 1.00 Percent Frequency 30% 20% 40% 10% Answers to question 8 A positive relationship between x and y appears to exist. Answers to question 9 a. No, majority (260) will not attend graduate school b. Majority (146) are engineering majors c. Undergraduate Major Graduate School Business Engineering Others Total Yes 25% 30% 45% 100% 10 No 35% 40% 25% 100% Majority who plan to go to graduate school are from "Other" majors. Majority of those who will not go to graduate school are engineering majors. d. Undergraduate Major Graduate School Business Engineering Others Yes 27.8% 28.8% 49.2% No 72.2% 71.2% 50.8% Total 100% 100% 100% Approximately the same percentages of Business and engineering majors plan to attend graduate school (27.8% and 28.8% respectively). Of the "Other" majors approximately half (49.2%) plan to go to graduate school. 11