CHAPTER THREE
Descriptive Statistics
C
1.
E
Term
C
E
Term
Statistical measures used to yield information about the middle of a group of
numbers are called _______.
A. averages
B. measures of variability
C. measures of central tendency
D. Z scores
2.
Which of the following is NOT a measure of central tendency?
A. mean
B. median
C. variance
D. mode
69
Test Bank
70
A
3.
E
Term
A
A. mode
B. mean
C. median
D. coefficient of variation
4.
E
Term
C
5.
6.
E
Term
The lowest appropriate level of measurement for the mean is _________.
A. nominal
B. ordinal
C. interval
D. ratio
7.
E
Term
A
Which of the following is an appropriate measure of central tendency for ordinal
data?
A. standard deviation
B. mean
C. median
D. coefficient of variation
E
Term
B
Which of the following is an appropriate measure of central tendency for nominal
data?
A. mode
B. mean
C. median
D. coefficient of variation
E
Term
C
The most frequently occurring value in a set of data is called the _______.
The lowest appropriate level of measurement for the median is _________.
A. nominal
B. ordinal
C. interval
D. ratio
8.
The lowest appropriate level of measurement for the mode is _________.
A. nominal
B. ordinal
C. interval
D. ratio
Chapter 3: Descriptive Statistics
C
9.
The middle value in an ordered array of numbers is called the _______.
E
Term
A. mode
B. mean
C. median
D. coefficient of variation
B
Another term for average is _______.
10.
E
Term
C
11.
E
Term
A
12.
A. mode
B. mean
C. median
D. variance
The Greek letter usually refers to the _______.
A. population standard deviation
B. sample variance
C. population mean
D. sample mean
The Greek letter  usually refers to the _________.
E
Term
A. population standard deviation
B. sample variance
C. population mean
D. sample mean
D
The notation X usually refers to the _______________.
13.
E
Term
A. population standard deviation
B. sample variance
C. population mean
D. sample mean
B
The notation S2 usually refers to the _______________.
14.
E
Term
A. population standard deviation
B. sample variance
C. population mean
D. sample mean
71
Test Bank
72
D
15.
Which of the following is NOT a commonly used measure of variability?
M
Term
A. variance
B. standard deviation
C. mean absolute deviation
D. average deviation
A
The sum of deviations about the arithmetic mean is always equal to _______.
16.
E
Term
C
17.
A. zero
B. the variance
C. the mean absolute deviation
D. the standard deviation
The average of the squared deviations from the arithmetic mean is called the
_______.
M
Term
A. standard deviation
B. mean absolute deviation
C. variance
D. coefficient of variation
B
The sample variance is found by taking the square root of _______.
18.
E
Term
A. the sample mean
B. the sample variance
C. the coefficient of variation
D. the mean absolute deviation
C
The lowest appropriate level of measurement for standard deviation is _________.
19.
E
Term
A. nominal
B. ordinal
C. interval
D. ratio
B
The lowest appropriate level of measurement for the Interquartile Range is
_________.
20.
E
Term
A. nominal
B. ordinal
C. interval
D. ratio
Chapter 3: Descriptive Statistics
D
21.
The number of standard deviations that a value (X) is above or below the mean is
the _________________.
M
Term
A.
B.
C.
D.
D
If the mean of a distribution is greater than the median, then the distribution is
______.
22.
M
Term
C
23.
absolute deviation
coefficient of variation
interquartile range
Z score
A. not skewed
B. symmetrical about its mean
C. skewed to the left
D. skewed to the right
If the median of a distribution is greater than mean, then the distribution is
_________.
M
Term
A.
B.
C.
D.
D
The interquartile range is _____________.
24.
not skewed
symmetrical about its mean
skewed to the left
skewed to the right
E
Term
A.
B.
C.
D.
B
The five numbers used to construct a box and whisker plot are _______.
25.
the largest value minus the least value
the ratio of the mean to the standard deviation
negative if the distribution is skewed to the left
Q3 - Q1
M
Term
A.
B.
C.
D.
D
Which of the following is a measure of relative dispersion?
26.
M
Term
73
A.
B.
C.
D.
the mean, standard deviation, Q1, Q3, and the coefficient of variation
Q1, Q2, Q3, the least value of X, and the largest value of X
the mean, standard deviation, least value of X, largest value of X, and Q2
the coefficient of variation, IQR, mean, Q2, and mean absolute deviation
standard deviation
interquartile range
mean absolute deviation
coefficient of dispersion
Test Bank
74
A
27.
The empirical rule says that approximately what percentage of the values would
be within 2 standard deviations of the mean in a bell shaped set of data?
M
Term
A. 95%
B. 68%
C. 50%
D. almost all
B
The empirical rule says that approximately what percentage of the values would
be within 1 standard deviation of the mean in a bell shaped set of data?
28.
M
Term
A
29.
H
Calc
D
A. at least 75%
B. at least 68%
C. at least 95%
D. at least 89%
30.
M
Calc
B
M
Calc
A. 95%
B. 68%
C. 50%
D. almost all
Chebyshev's Theorem says that how many values will be within 2 standard
deviations of the mean?
Chebyshev's Theorem says that the number of values within 3 standard deviations
of the mean will be _______.
A. at least 75%
B. at least 68%
C. at least 95%
D. at least 89%
31.
A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 72.
What is the mean grade?
A. 78
B. 80
C. 72
D. 84
Chapter 3: Descriptive Statistics
C
32.
M
Calc
A
33.
34.
E
Calc
A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The mean time required for this trip was _______.
A.
B.
C.
D.
35.
M
Calc
B
A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 82.
What is the mode?
A. 78
B. 80
C. 88
D. 84
M
Calc
A
A statistics student made the following grades on 5 tests: 84, 78, 88, 72, and 72.
What is the median grade?
A. 88
B. 72
C. 78
D. 80
E
Calc
D
75
A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The median time required for this trip was _______.
A.
B.
C.
D.
36.
35
41
37.5
38
39
41
37.5
38
A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
34, 39, 41, 35, and 41. The modal time required for this trip was _______.
A.
B.
C.
D.
39
41
37.5
38
Test Bank
76
B
37.
H
Calc
A
A.
B.
C.
D.
38.
H
Calc
D
39.
M
BCalc
3.32
2.97
1.73
11
A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
44, 39, 41, 35, and 41. The mean time required for this trip was 40 minutes.
What is the mean absolute deviation for this sample data?
A.
B.
C.
D.
40.
8.8
11
0
3
A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
44, 39, 41, 35, and 41. The mean time required for this trip was 40 minutes.
What is the standard deviation for this sample data?
A.
B.
C.
D.
H
Calc
D
A commuter travels many miles to work each morning. She has timed this trip 5
times during the last month. The time (in minutes) required to make this trip was
44, 39, 41, 35, and 41. The mean time required for this trip was 40 minutes.
What is the variance for this sample data?
0
12
3
2.4
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism
at the Batesville Bottling during the last operating year. A sample of six
personnel records produced the following data: 0, 2, 4, 7, 2, 9.
The mean number absences per employee is ____________.
A.
B.
C.
D.
3
2
5.5
4
Chapter 3: Descriptive Statistics
B
41.
77
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism
at the Batesville Bottling during the last operating year. A sample of six
personnel records produced the following data: 0, 2, 4, 7, 2, 9.
The modal number absences per employee is ____________.
E
BCalc
A.
B.
C.
D.
A
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism
at the Batesville Bottling during the last operating year. A sample of six
personnel records produced the following data: 0, 2, 4, 7, 2, 9.
The median number absences per employee is ____________.
42.
3
2
5.5
4
M
BCalc
A.
B.
C.
D.
A
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism
at the Batesville Bottling during the last operating year. A sample of six
personnel records produced the following data: 0, 2, 4, 7, 2, 9.
The variance of the number absences per employee is ____________.
43.
3
2
5.5
4
H
BCalc
A.
B.
C.
D.
C
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism
at the Batesville Bottling during the last operating year. A sample of six
personnel records produced the following data: 0, 2, 4, 7, 2, 9.
The standard deviation of the number absences per employee is ____________.
44.
H
BCalc
A.
B.
C.
D.
11.6
9.67
3.41
3.11
11.6
9.67
3.41
3.11
Test Bank
78
A
45.
The mean life of a particular brand of light bulb is 1000 hours and the standard
deviation is 50 hours. It can be concluded that at least 75% of the bulbs will last
between _______.
H
BCalc
A.
B.
C.
D.
C
The mean life of a particular brand of light bulb is 1000 hours and the standard
deviation is 50 hours. It can be concluded that at least 89% of the bulbs will last
between _______.
46.
900 and 1100 hours
950 and 1050 hours
850 and 1150 hours
800 and 1200 hours
H
BCalc
A.
B.
C.
D.
B
The mean life of a particular brand of light bulb is 1000 hours and the standard
deviation is 50 hours. Tests show that the life of the bulb is approximately
normally distributed. It can be concluded that approximately 68% of the bulbs
will last between _______.
47.
M
Calc
A
A.
B.
C.
D.
48.
M
BCalc
900 and 1100 hours
950 and 1050 hours
850 and 1150 hours
800 and 1200 hours
900 and 1100 hours
950 and 1050 hours
850 and 1150 hours
800 and 1200 hours
Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
company's new model of automobile batteries. Life tests performed on a sample
of 100 batteries indicated: (1) an average life of 75 months, (2) a standard
deviation of 5 months, and (3) battery life is approximately normally distributed.
Approximately 68% of the batteries will last between ________________.
A.
B.
C.
D.
70 and 80 months
60 and 90 months
65 and 85 months
55 and 95 months
Chapter 3: Descriptive Statistics
C
49.
79
Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
company's new model of automobile batteries. Life tests performed on a sample
of 100 batteries indicated: (1) an average life of 75 months, (2) a standard
deviation of 5 months, and (3) battery life is approximately normally distributed.
Approximately 95% of the batteries will last between ________________.
M
BCalc
A.
B.
C.
D.
B
Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
company's new model of automobile batteries. Life tests performed on a sample
of 100 batteries indicated: (1) an average life of 75 months, (2) a standard
deviation of 5 months, and (3) battery life is approximately normally distributed.
Approximately 99% of the batteries will last between ________________.
50.
70 and 80 months
60 and 90 months
65 and 85 months
55 and 95 months
M
BCalc
A.
B.
C.
D.
C
Jessica Salas, president of Salas Products, is reviewing the warranty policy for her
company's new model of automobile batteries. Life tests performed on a sample
of 100 batteries indicated: (1) an average life of 75 months, (2) a standard
deviation of 5 months, and (3) battery life is approximately normally distributed.
What percentage of the batteries will fail within the first 65 months of use?
51.
70 and 80 months
60 and 90 months
65 and 85 months
55 and 95 months
H
BCalc
A.
B.
C.
D.
B
The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. If a histogram of the data shows the it takes on a mound
shape, the empirical rule says that approximately 95% of the graduates would
have a starting salary between _______.
52.
M
BCalc
A.
B.
C.
D.
0.5%
1%
2.5%
5%
23,000 and 27,000
21,000 and 29,000
19,000 and 31,000
24,000 and 26,000
Test Bank
80
A
53.
The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. If a histogram of the data shows the it takes on a mound
shape, the empirical rule says that approximately 68% of the graduates would
have a starting salary between _______.
M
BCalc
A.
B.
C.
D.
A
The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. A histogram of the data shows the shape to be very erratic so
Chebyshev's Theorem should be used. How many of the graduates would have a
starting salary between 21,000 and 29,000?
54.
23,000 and 27,000
21,000 and 29,000
19,000 and 31,000
24,000 and 26,000
H
BCalc
A.
B.
C.
D.
B
The average starting salary for graduates at a university is $25,000 with a standard
deviation of $2,000. A histogram of the data shows the shape to be very erratic so
Chebyshev's Theorem should be used. How many of the graduates would have a
starting salary between 19,000 and 31,000?
55.
at least 75%
at least 89%
at least 68%
at least 95%
H
BCalc
A.
B.
C.
D.
B
The ages of students in a class have been put into the frequency distribution
below.
Age Number of Students
18
3
19
5
20
28
21
4
What is the average age of these students?
M
Calc
56.
A.
B.
C.
D.
at least 75%
at least 89%
at least 68%
at least 95%
19.50
19.85
20.00
28.00
Chapter 3: Descriptive Statistics
B
57.
H
Calc
D
A.
B.
C.
D.
58.
M
Calc
C
E
Calc
The ages of students in a class have been put into the frequency distribution
below.
Age Number of Students
18
3
19
5
20
28
21
4
What is the standard deviation for this (population) set of data?
The ages of students in a class have been put into the frequency distribution
below.
Age Number of Students
18
3
19
5
20
28
21
4
What is the median age of these students?
A.
B.
C.
D.
59.
0.494
0.703
1.12
1.25
18
19
19.5
20
The ages of students in a class have been put into the frequency distribution
below.
Age Number of Students
18
3
19
5
20
28
21
4
What is the modal age of these students?
A.
B.
C.
D.
18
19
20
21
81
Test Bank
82
A
60.
M
App
C
The mean, median, and mode for the following set of data are all the same value
(20). Data: 18, 19, 20, 20, 21, 22. If the highest number were changed from 22
to 322, which of the following would be most affected?
A.
B.
C.
D.
61.
mean
median
mode
sample size
In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
Q1, Q2, and Q3 for 577 motorcycle dealers' current ratios were 1.3, 1.6 and 2.9,
respectively. From this we can conclude that __________________.
M
BApp
A.
B.
C.
D.
C
An instructor is evaluating the performance of students on a test. He records the
number of points that each student missed and created a frequency distribution.
This is provided below:
Points missed
Number of students
0-under 10
2
10-under 20
4
20-under 30
10
30-under 40
8
40-under 50
6
What is the mean number of points missed?
H
Calc
62.
A.
B.
C.
D.
68% of these dealers had current ratios between 1.3 and 2.9
95% of these dealers had current ratios between 1.3 and 2.9
50% of these dealers had current ratios between 1.3 and 2.9
75% of these dealers had current ratios between 1.3 and 2.9
20
25
29
30
Chapter 3: Descriptive Statistics
C
63.
H
Calc
D
An instructor is evaluating the performance of students on a test. He records the
number of points that each student missed and created a frequency distribution.
This is provided below:
Points missed
Number of students
0-under 10
2
10-under 20
4
20-under 30
10
30-under 40
8
40-under 50
6
What is the variance for this population?
A.
B.
C.
D.
64.
83
11.43
135.17
130.67
200
In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
Q1, Q2, and Q3 for 577 motorcycle dealers' current ratios were 1.3, 1.6 and 2.9,
respectively. From this we can conclude that __________________.
M
BApp
A.
B.
C.
D.
A
An instructor is evaluating the performance of students on a test. He records the
number of points that each student missed and created a frequency distribution.
This is provided below:
Points missed
Number of students
0-under 10
2
10-under 20
4
20-under 30
10
30-under 40
8
40-under 50
6
What is the standard deviation for this population?
H
Calc
65.
A.
B.
C.
D.
68% of these dealers had current ratios of 1.6 or less
95% of these dealers had current ratios of 2.9 or less
50% of these dealers had current ratios of 2.9 or more
75% of these dealers had current ratios of 1.3 or more
11.43
14.14
11.63
135.17
Test Bank
84
C
66.
H
Calc
D
An instructor is evaluating the performance of students on a test. He records the
number of points that each student missed and created a frequency distribution.
This is provided below:
Points missed
Number of students
0-under 10
2
10-under 20
4
20-under 30
10
30-under 40
8
40-under 50
6
If this is considered a sample, what is the standard deviation?
A.
B.
C.
D.
67.
11.43
14.14
11.63
135.17
Which of the following is always true?
E
Term
A.
B.
C.
D.
A
Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system, and orders an inspection of "each and every
payroll voucher issued since January 1, 1993." Each payroll voucher was
inspected and the following frequency distribution was compiled.
Errors Per Voucher
Number of Vouchers
0-under 2
500
2-under 4
400
4-under 6
300
6-under 8
200
8-under 10
100
The mean number of errors per voucher is __________.
68.
H
BCalc
A.
B.
C.
D.
the median is always one-half of the mean
the mode is always greater than the mean
the mean is always equal to the median
the standard deviation is always the square root of the variance
3.67
5
750
300
Chapter 3: Descriptive Statistics
A
69.
Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system, and orders an inspection of "each and every
payroll voucher issued since January 1, 1993." Each payroll voucher was
inspected and the following frequency distribution was compiled.
Errors Per Voucher
Number of Vouchers
0-under 2
500
2-under 4
400
4-under 6
300
6-under 8
200
8-under 10
100
The distribution of errors per voucher is __________.
M
BApp
A.
B.
C.
D.
C
A sales manager has sampled past sales records to determine how many
refrigerators are sold each day. Daily records for a sample of 10 days have been
selected. The sales on these days are: 0, 4, 4, 2, 1, 3, 4, 5, 2, 7. What is the
mean daily sales?
70.
symmetrical with respect to its mean
skewed to the right
not skewed
negatively skewed
M
BCalc
A.
B.
C.
D.
C
A sales manager has sampled past sales records to determine how many
refrigerators are sold each day. Daily records for a sample of 10 days have been
selected. The sales on these days are: 0, 4, 3, 2, 1, 3, 5, 5, 2, 5. What is the
median daily sales?
71.
M
BCalc
A.
B.
C.
D.
2
4
3.2
10
3.5
2
3
4
85
Test Bank
86
D
72.
E
BCalc
B
73.
A sales manager has sampled past sales records to determine how many
refrigerators are sold each day. Daily records for a sample of 10 days have been
selected. The sales on these days are: 0, 4, 4, 2, 1, 3, 4, 5, 2, 7. The mode of
data set is ______.
A. 3.5
B. 2
C. 3
D. 4
A sales manager has sampled past sales records to determine how many
televisions are sold each day. Daily records for a sample of 5 days have been
selected. The sales on these days are: 2, 4, 5, 2, 7. What is the mean for this set
of data?
E
BCalc
A.
B.
C.
D.
A
A sales manager has sampled past sales records to determine how many
televisions are sold each day. Daily records for a sample of 5 days have been
selected. The sales on these days are: 2, 4, 5, 2, 7. What is the mode for this set
of data?
74.
2
4
5
4.5
E
BCalc
A.
B.
C.
D.
A
In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
Q1, Q2, and Q3 for 577 motorcycle dealers' current ratios were 1.3, 1.6 and 2.9,
respectively. From this we can conclude that __________________.
75.
E
BApp
A.
B.
C.
D.
2
4
5
4.5
50% of these dealers had current ratios of 1.6 or less
68% of these dealers had current ratios of 1.3 or less
50% of these dealers had current ratios of 2.9 or more
95% of these dealers had current ratios of 1.3 or more
Chapter 3: Descriptive Statistics
C
76.
87
A sales manager has sampled past sales records to determine how many
televisions are sold each day. Daily records for a sample of 5 days have been
selected. The sales on these days are: 2, 4, 5, 2, 7. What is the standard
deviation for this set of sample data?
M
BCalc
A.
B.
C.
D.
B
A sales manager has sampled past sales records to determine how many
televisions are sold each day. Daily records for a sample of 5 days have been
selected. The sales on these days are: 2, 4, 5, 2, 7. What is the variance for this
set of sample data?
77.
2
0
2.12
4.5
M
BCalc
A.
B.
C.
D.
B
A sales manager has sampled past sales records to determine how many
televisions are sold each day. Daily records for a sample of 5 days have been
selected. The sales on these days are: 2, 4, 5, 2, 7. What is the median for this
set of data?
78.
4
4.5
2
0
E
BCalc
A.
B.
C.
D.
C
A sales manager has sampled past sales records to determine how many
televisions are sold each day. Daily records for a sample of 5 days have been
selected. The sales on these days are: 2, 4, 5, 2, 7. What is the mean absolute
deviation for this set of data?
79.
M
BCalc
A.
B.
C.
D.
2
4
5
4.5
0
2
1.6
4
Test Bank
88
D
80.
M
App
C
Consider the following 3 numbers: 10, 20, 30. In calculating measures of central
tendency and variability for this set of data, which of the following is true?
A. you can calculate the mean only if you know if this is a sample or a population
B. you can calculate the median only if you know if this is a sample or a
population
C. you can calculate the mode only if you know if this is a sample or a population
D. you can calculate the variance only if you know if this is a sample or a
population
81.
Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the
following performance statistics for two new stocks.
Rate of Return
Stock
Mean
Standard Deviation
Salas Products, Inc.
15%
5%
Hot Boards, Inc.
20%
5%
The coefficient of variation for Salas Products, Inc. is __________.
E
BCalc
A.
B.
C.
D.
B
The following box and whisker plot was constructed for the age of accounts
receivable.
82.
300%
100%
33%
5%
The box and whisker plot reveals that the accounts receivable ages are _______.
E
BApp
A.
B.
C.
D.
skewed to the left
skewed to the right
not skewed
normally distributed
Chapter 3: Descriptive Statistics
A
83.
89
The following box and whisker plot was constructed for the age of accounts
receivable.
The box and whisker plot reveals that the accounts receivable ages are _______.
E
BApp
A.
B.
C.
D.
A
The following frequency distribution was constructed for the age of accounts
receivable.
84.
skewed to the left
skewed to the right
not skewed
normally distributed
The frequency distribution reveals that the accounts receivable ages are _______.
E
BApp
A.
B.
C.
D.
B
The following frequency distribution was constructed for the age of accounts
receivable.
85.
skewed to the left
skewed to the right
not skewed
normally distributed
The frequency distribution reveals that the accounts receivable ages are _______.
E
BApp
A.
B.
C.
D.
skewed to the left
skewed to the right
not skewed
normally distributed
Test Bank
90
B
86.
Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the
following performance statistics for two new stocks.
Rate of Return
Stock
Mean
Standard Deviation
Salas Products, Inc.
15%
5%
Hot Boards, Inc.
20%
5%
The coefficient of variation for Salas Products, Inc. is __________.
M
BCalc
A.
B.
C.
D.
D
David Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. His staff compiled the
following table of regional statistics on teller training hours.
Southeast Region Southwest Region
Mean
20
28
Median
20
20
Mode
20
21
Standard Deviation
5
7
What can David conclude from these statistics?
87.
M
BApp
A.
B.
C.
D.
equal to the coefficient of variation for Hot Boards
greater than the coefficient of variation for Hot Boards
less than the coefficient of variation for Hot Boards
25%
the Southeast distribution is skewed to the left
the Southeast distribution is skewed to the right
the Southwest distribution is skewed to the left
the Southwest distribution is skewed to the right
Chapter 3: Descriptive Statistics
A
88.
91
David Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. His staff compiled the
following table of regional statistics on teller training hours.
Southeast Region Southwest Region
Mean
20
28
Median
20
20
Mode
20
21
Standard Deviation
5
7
What can David conclude from these statistics?
M
BApp
A.
B.
C.
D.
D
David Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. His staff compiled the
following table of regional statistics on teller training hours.
Southeast Region Southwest Region
Mean
20
28
Median
20
20
Mode
20
21
Standard Deviation
5
7
What can David conclude from these statistics?
89.
M
BApp
A.
B.
C.
D.
the Southwest distribution has the greater dispersion
the Southwest distribution is skewed to the left
the Southeast distribution has the greater dispersion
the Southeast distribution is skewed to the left
the Southwest distribution has the greater relative dispersion
the Southwest distribution is skewed to the left
the Southeast distribution has the greater relative dispersion
the Southeast distribution is not skewed
Test Bank
92
D
90.
Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s Electrical
Division, is leading a study to assess the relative importance of product features.
Two items on a survey questionnaire distributed to 100 of Plano’s customers
asked them to rate the importance of “ease of maintenance” and “efficiency of
operation” on a scale of 1 to 10 (with 1 meaning “not important” and 10 meaning
“highly important”). His staff assembled the following statistics on these two
items.
Ease of Maintenance
Efficiency of Operation
Mean
7.5
6.0
Median
8.5
5.5
Mode
9.0
4.5
Standard Deviation
1.5
2.5
What can Manuel conclude from these statistics?
M
BApp
A.
B.
C.
D.
B
Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s Electrical
Division, is leading a study to assess the relative importance of product features.
Two items on a survey questionnaire distributed to 100 of Plano’s customers
asked them to rate the importance of “ease of maintenance” and “efficiency of
operation” on a scale of 1 to 10 (with 1 meaning “not important” and 10 meaning
“highly important”). His staff assembled the following statistics on these two
items.
Ease of Maintenance
Efficiency of Operation
Mean
7.5
6.0
Median
8.5
5.5
Mode
9.0
4.5
Standard Deviation
1.5
2.5
What can Manuel conclude from these statistics?
91.
M
BApp
A.
B.
C.
D.
the Ease of Maintenance distribution is skewed to the right
the Ease of Maintenance distribution is not skewed
the Efficiency of Operation distribution is skewed to the left
the Efficiency of Operation distribution is positively skewed
the Ease of Maintenance distribution has more relative dispersion
the Ease of Maintenance distribution has less dispersion
the Efficiency of Operation distribution is skewed to the left
the Efficiency of Operation distribution has less dispersion
Chapter 3: Descriptive Statistics
A
92.
93
Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s Electrical
Division, is leading a study to assess the relative importance of product features.
Two items on a survey questionnaire distributed to 100 of Plano’s customers
asked them to rate the importance of “ease of maintenance” and “efficiency of
operation” on a scale of 1 to 10 (with 1 meaning “not important” and 10 meaning
“highly important”). His staff assembled the following statistics on these two
items.
Ease of Maintenance
Efficiency of Operation
Mean
7.5
6.0
Median
8.5
5.5
Mode
9.0
4.5
Standard Deviation
1.5
2.5
What can Manuel conclude from these statistics?
M
BApp
A.
B.
C.
D.
B
In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that
Q1, Q2, and Q3 for 2,037 gasoline service stations' sales to inventory ratios were
20.8, 33.4, and 53.8, respectively. From this we can conclude that ____________.
93.
E
BApp
A
94.
H
BCalc
Ease of Maintenance is more important than Efficiency of Operation
Efficiency of Operation is more important than Ease of Maintenance
Efficiency of Operation and Ease of Maintenance are equally important
the Efficiency of Operation distribution has less dispersion
A. 68% of these service stations had sales to inventory ratios of 20.8 or less
B. 50% of these service stations had sales to inventory ratios of 33.4 or less
C. 50% of these service stations had sales to inventory ratios of 53.8 or more
D. 95% of these service stations had sales to inventory ratios of 20.8 or more
Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the
service level provided to walk-in customers. Accordingly, his staff prepared the
following distribution of waiting time for walk-in customers.
Waiting Time
Number of Customers
(in minutes)
0-under 2
60
2-under 4
30
4-under 6
10
The mean waiting time for this sample of walk-in customers is _________.
A.
B.
C.
D.
2 minutes
66.67 minutes
33.33 minutes
3 minutes
Test Bank
94
B
95.
Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the
service level provided to walk-in customers. Accordingly, his staff prepared the
following distribution of waiting time for walk-in customers.
Waiting Time
Number of Customers
(in minutes)
0-under 2
60
2-under 4
30
4-under 6
10
The standard deviation of waiting time for this sample of walk-in customers is
______.
H
BCalc
A.
B.
C.
D.
C
David Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. His staff reports several
statistics for teller training hours. The mean is 20 hours, the standard deviation is
5 hours, the median is 15 hours, and mode is 10 hours.
The Pearsonian coefficient of skewness for teller training hours is __________.
96.
2 minutes
1.35 minutes
1.82 minutes
1.80 minutes
M
BCalc
A.
B.
C.
D.
C
The following box and whisker plot was constructed for the age of accounts
receivable.
97.
6
1
3
4
The box and whisker plot reveals that the accounts receivable ages are _______.
E
BApp
A.
B.
C.
D.
skewed to the left
skewed to the right
not skewed
normally distributed
Chapter 3: Descriptive Statistics
C
98.
95
The following frequency distribution was constructed for the age of accounts
receivable.
The frequency distribution reveals that the accounts receivable ages are _______.
E
BApp
A.
B.
C.
D.
A
Which Excel function returns the second quartile?
99.
skewed to the left
skewed to the right
not skewed
positively skewed
E
Term
A.
B.
C.
D.
median()
mode()
max()
quart2()
B 100.
Which Excel function returns the population standard deviation?
M
Term
A.
B.
C.
D.
C 101.
Which Excel function returns the sample standard deviation?
M
Term
A.
B.
C.
D.
D 102.
Which Excel function returns the arithmetic mean?
M
Term
A.
B.
C.
D.
pstdev()
stdevp()
stdev()
stdevpop()
sstdev()
stdevs()
stdev()
stdevsample()
amean()
meana()
mean()
average()
96
Test Bank
103.
Albert Abbasi, VP of Operations at Ingleside International Bank (IIB), is
evaluating the service level provided to walk-in customers. Accordingly, his staff
prepared the following distribution of waiting time for walk-in customers.
Waiting Time
Number of Customers
(in minutes)
0-under 2
120
2-under 4
40
4-under 6
25
6-under 8
10
8-under 10
5
In a recent survey, 70% of the walk-in customers indicated that waiting four
minutes (or more) was unacceptable. Presently, IIB has no direct competitors, but
a competing bank is under construction across the street.
Discuss the managerial and business implications of this situation. What
alternatives should Albert consider? What graphic depiction should he choose for
his presentation to the bank’s board of directors?
M
BApp
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Chapter 3: Descriptive Statistics
104.
97
Angelina Arnott, Director of National Industrial Sales, is concerned by a
deteriorating sales trend. Specifically, the number of customers is stable at 1,500,
but they are purchasing less each year. She orders her staff to search for causes of
the downward trend by surveying all 1,500 industrial customers. One question on
the survey asked the customers to rate “Merchandise is delivered on time” on a
scale of 1 to 5, with 1 meaning “never” and 5 meaning “always”.
Merchandise Delivered On Time
Number of Customers
1
100
2
200
3
300
4
700
5
100
No Response
100
Discuss the managerial and business implications of Angelina’s situation.
Identify some possible causes of the trend. What corrective actions are available
for each cause? What graphic depiction(s) should she choose for her report to the
VP of Marketing?
M
BApp
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
98
Test Bank
105.
Annualized rates of return were calculated from closing prices of Caterpillar
(CAT) and General Mills (GIS) common stock. Descriptive statistics of these
rates of return presented in the following table.
CAT
GIS
Mean
0.233621705 0.139744793
Standard Error
0.162775427 0.097267227
Median
0.194367839 0.122108626
Mode
#N/A
0
Standard Deviation 1.091930758 0.652488394
Sample Variance
1.19231278 0.425741105
Kurtosis
6.478114897 -0.59713571
Skewness
1.647492156 0.058132445
Range
6.669350226 2.710777183
Minimum
-1.770866463 -1.256246317
Maximum
4.898483762 1.454530866
Sum
10.51297674 6.288515695
Count
45
45
Describe what these descriptive statistics reveal about the market performance of
these two stocks.
M
BApp
Chapter 3: Descriptive Statistics
106.
Descriptive statistics of daily sales ($'s) were calculated for two Bob's Quick
Shops -- the Southside store, and the Midcity store.
Southside
Mean
5025.622
Standard Error
118.306
Median
5110.73
Mode
#N/A
Standard Deviation
916.394
Sample Variance
839778
Kurtosis
-0.64387
Skewness
-0.05517
Range
3949.172
Minimum
3133.362
Maximum
7082.534
Sum
301537.3
Count
60
Midcity
2733.333
249.1417
2000
1000
1929.843
3724294
-0.49322
0.860968
6000
1000
7000
164000
60
Describe what these descriptivie statistics indicate about daily sales at these two
stores.
M
BApp
99
100
Test Bank