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Chapter
1. An example of a quantitative variable is the telephone number of an individual. FALSE

2. If we examine some of the population measurements, we are conducting a Sample of the population. TRUE
3. An example of a nominal scale variable is the make of a car. TRUE
4. Credit score is an example of a ratio scale variable. FALSE There is no intrinsic Zero. An arbitrary minimum is established. Therefore, it is
an interval scale variable.
5. Temperature is an example of an interval scale variable. TRUE There is no intrinsic Zero. One arbitrary Zero is established for Centigrade
and another for Fahrenheit.
6. The number of people eating at a local caf between noon and 2:00 p.m. is an example of a discrete variable. TRUE
Chapter2
7. The relative frequency for a class is the frequency of the class divided by the number of classes. FALSE We divide by the total frequency
or total number of items not by number of classes.
8. When we wish to summarize the proportion (or fraction) of items in a class we use the relative frequency for that class. TRUE
9. When establishing the classes for a frequency table it is generally agreed that the more classes you use the better your frequency table
will be. FALSE We try to follow the 2k rule. Having too many classes is not good.
10. The cumulative distribution function is initially increasing then decreasing. FALSE It is always increasing and becomes flat at the end
point.
11. A Histogram is a graphic that is used to depict qualitative data. FALSE Bar Chart is used for qualitative data.
Chapter 3
12. The Median is the measure of central tendency that divides a population or sample into two equal parts. TRUE
13. If there are 7 classes in a frequency distribution then the fourth class necessarily contains the median. FALSE It depends on the class
frequencies
14. The sum of deviations from the mean must be zero. TRUE
15. The median is said to be less sensitive to extreme values. TRUE This statement is a relative statement (implicitly) comparing Median with
the other popular measure of central tendency, namely, the Mean. But some students read the statement in absolute terms and answered it
wrong although they knew that Median is not sensitive to extreme values. Therefore, I removed this question from grading.
16. The Empirical Rule is used to describe a population that is highly skewed. FALSE It is based on the symmetrical Normal distribution and
can be safely applied only for slightly skewed non-Normal distributions. For highly skewed distribution it is not appropriate.
Multiple
Chapter 1

Choices

(each

question

carries

three

points):

1.
A.
B.
C.
D. Predictable

Ratio

variables

An

inherently
Categorical

2.
A.
The
B.
The
C.
The
D.
The
E. The Drivers License Number

Which

3.
Which
A.
B.
C.
Daily
D.
The
E. Value of Company Stock

of

4.
Which
A.
B.
C.
D. Test assumptions

5.
A.
B.
C.
D. Ratio

The

Chapter
6.
A(n)
A.
B.
C.
D. Pie Chart
7.
When
A.
B.
C.
D.
E. Equal

level

of

have
Meaningful

the

the

following

Satisfaction

following
Air

______

following

is

categorical

Account
in
Number

is
not
Develop
Summarize
Estimate

Consumer survey would

is

quantitative
a
a
a
police

Sales
Security

in

is

of

Bank

the

zero

of
of
of

rank

Social

characteristic:
order
value
nature

in

of

the

unique

defined

make
VIN
price

of

following

graph

Nominal

a
of

typical

represent

or

use

of

inferential

a(n) ____________

of

level

cumulative

Bar
Ogive

developing

frequency

distribution

Whole
Mutually

the

class

(group),

intervals

of

variable?
TV
car
TV
officer

variable?
Temperature
Balance
Store
person

statistics?
forecasts
data
relationships

measurement.
Nominative
Ordinal
Interval

2
distribution.
Histogram
Chart
plot

must

be
Large
Small
numbers
exclusive

Although having equal intervals (or nearly equal intervals) is generally desirable, it is not necessary and not even appropriate in some
applications. For example, in Income distribution the classes are arbitrarily formed and are generally unequal. Similarly many distributions
have the lowest and/or highest class with open bounds which make these class intervals different from other classes.

8.
A.
B.
C.
D.
E. 8

If

there

are

60

values

in

data

set,

how many

classes

should

be

created

for

frequency

histogram?
4
5
6
7

Just apply the 2k rule for question 8.

9.

Consider the following frequency distribution from Excel. What is the missing value?

Bin

Frequency

Cumulative %

584

4.00%

1774.4

64.00%

2964.8

80.00%

4155.2

92.00%

5345.6

96.00%

More

100.00%

A.

B.

10

C.

15

D.

16

E.

25

10. A company collected the ages from a random sample of its middle managers with the resulting frequency distribution shown below:
Class Interval

Frequency

20 to 25

25 to 30

12

30 to 35

28

35 to 40

20

40 to 45

45 to 50