SB Rar

Multiple Choice Questions
40. Events A and B are mutually exclusive when:

A. their joint probability is zero.

B. they are independent events.
C. P(A)P(B) = 0
D. P(A)P(B) = P(A | B)
Review definition of mutually exclusive.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

41. If two events are complementary, then we know that:

A. the sum of their probabilities is one.

B. the joint probability of the two events is one.
C. their intersection has a nonzero probability.
D. they are independent events.
Review definition of complementary events.

Blooms: Remember

42. Regarding probability, which of the following is correct?

A. When events A and B are mutually exclusive, then P(A∩B) = P(A) + P(B).
B. The union of events A and B consists of all outcomes in the sample space that are contained in both
event A and event B.
C. When two events A and B are independent, the joint probability of the events can be found by
multiplying the probabilities of the individual events.
D. The probability of the union of two events can exceed one.
Review the rules of probability.

Blooms: Remember
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

43. Independent events A and B would be consistent with which of the following statements:

A. P(A) = .3, P(B) = .5, P(A∩B) = .4.

B. P(A) = .4, P(B) = .5, P(A∩B) = .2.
C. P(A) = .5, P(B) = .4, P(A∩B) = .3.
D. P(A) = .4, P(B) = .3, P(A∩B) = .5.
For independence, the product P(A)P(B) must equal P(A∩B).

Blooms: Apply
Difficulty: 1 Easy

44. Find the probability that either event A or B occurs if the chance of A occurring is .5, the chance of B
occurring is .3, and events A and B are independent.

A. .80
B. .15
C. .65
D. .85
Given that the events are independent, the product P(A)P(B) must equal P(A∩B). Thus, P(A or B) = P(A) +
P(B) - P(A∩B) = .50 + .30 - (.50)(.30) = .80 - .15 = .65 using the General Law of Addition.

Blooms: Apply

45. Regarding the rules of probability, which of the following statements is correct?

A. If A and B are independent events, then P(B) = P(A)P(B).

B. The sum of two mutually exclusive events is one.
C. The probability of A and its complement will sum to one.
D. If event A occurs, then its complement will also occur.
Review the rules of probabilities.

Blooms: Remember

46. Within a given population, 22 percent of the people are smokers, 57 percent of the people are males, and 12
percent are males who smoke. If a person is chosen at random from the population, what is the probability
that the selected person is either a male or a smoker?

A. .67
B. .79
C. .22
D. .43
Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

Blooms: Apply

47. Information was collected on those who attended the opening of a new movie. The analysis found that 56
percent of the moviegoers were female, 26 percent were under age 25, and 17 percent were females under
the age of 25. Find the probability that a moviegoer is either female or under age 25.

A. .79
B. .82
C. .65
D. .50
Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

Blooms: Apply
Difficulty: 3 Hard

48. Given the contingency table shown here, find P(V).

A. .20
B. .40
C. .50
D. .80
This is a marginal probability P(V) = 40/200 = .20.

Blooms: Apply
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

49. Given the contingency table shown here, find P(V | W).

A. .4000
B. .0950
C. .2375
D. .5875
This is a conditional probability P(V|W) = 19/80.

Blooms: Apply

50. Given the contingency table shown here, find the probability P(V´), that is, the probability of the
complement of V.

A. .30
B. .50
C. .80
D. .15
Calculate the probability of the complement of V by subtracting from its marginal probability P(V) = 40/200
to get P(V´) = 1 - P(V) = 1 - 40/200.

Blooms: Apply
Difficulty: 3 Hard

51. Given the contingency table shown here, find P(W∩S).

A. .12
B. .30
C. .40
D. .58
This is a joint probability P(W and S) = 24/200.

Blooms: Apply

52. Given the contingency table shown here, find P(A or M).

A. .2500
B. .7500
C. .6250
D. .1250
Use the General Law of Addition P(A or M) = 100/200 + 50/200 - 25/200.

Blooms: Apply
Difficulty: 3 Hard

53. Given the contingency table shown here, find P(A2).

A. .1842
B. .1766
C. .8163
D. .0578
This is a marginal probability: P(A2) = 86/467.

Blooms: Apply

54. Given the contingency table shown here, find P(A3∩B2).

A. .3212
B. .2933
C. .0942
D. .1006
This is a joint probability: P(A3 and B2) = 44/467.

Blooms: Apply

55. Given the contingency table shown here, find P(A2 | B3).

A. .0685
B. .1893
C. .3721
D. .1842
This is a conditional probability: P(A2|B3) = 32/169.

Blooms: Apply

56. Given the contingency table shown here, find P(A1 or B2).

A. .0933
B. .3182
C. .0300
D. .3854
Apply the General Law of Addition: P(A1 or B2) = 44/467 + 150/467 - 14/467.

Blooms: Apply
Difficulty: 3 Hard

57. Given the contingency table shown here, find P(A1∩A2).

A. .00
B. .09
C. .28
D. .38
This is a joint probability. The important thing here is that events A1 and A2 are mutually exclusive and so
both events cannot occur.

Blooms: Apply

58. Given the contingency table shown here, find the probability that either event A2 or event B2 will occur.

A. .4454
B. .5054
C. .0600
Use the General Law of Addition: P(A2 or B2) = 86/467 + 150/467 - 28/467.

Blooms: Apply
Difficulty: 3 Hard

59. Given the contingency table shown here, find P(B).

A. .85
B. .25
C. .45
D. .22
This is a marginal probability: P(B) = 90/200.

Blooms: Apply
Difficulty: 1 Easy

60. Given the contingency table shown here, find P(A or B).

A. .25
B. .85
C. .60
D. .42
Use the General Law of Addition: P(A or B) = 80/200 + 90/200 - 50/200.

Blooms: Apply

61. Given the contingency table shown here, find P(B | A]).

A. .250
B. .555
C. .855
D. .625
This is a conditional probability: P(B|A) = 50/80.

Blooms: Apply

62. Given the contingency table shown here, what is the probability that a randomly chosen employee who is
under age 25 would be absent 2 or more days?

A. .625
B. .375
C. .150
D. .273
This is a conditional probability: P(B'|A) = 30/80.

Blooms: Apply

63. Oxnard Casualty wants to ensure that their e-mail server has 99.98 percent reliability. They will use several
independent servers in parallel, each of which is 95 percent reliable. What is the smallest number of
independent file servers that will accomplish the goal?

A. 1
B. 2
C. 3
D. 4
1 - P(F1∩F2∩F3) = 1 - (.05) (.05) (.05) = 1 - .000125 = .999875, so 3 servers will do.

Blooms: Apply
Difficulty: 3 Hard

64. Given the contingency table shown here, does the decision to retire appear independent of the employee
type?
Survey question: Do you plan on retiring or keep working when you turn 65?

A. Yes.
B. No.
Does the product of the marginal probabilities equal their joint probability? This can be checked by asking
whether P(M and R) = P(M) P(R). In this example, because (31/124)(52/124) = 13/124, we can see that M
and R are independent events.

Blooms: Apply

65. Given the contingency table shown here, find the probability that a randomly chosen employee is a line
worker who plans to retire at age 65.
Given the contingency table shown here, what is the probability that a randomly chosen employee who is
under age 25 would be absent 2 or more days

A. .227
B. .419
C. .750
D. .315
This is a joint probability: P(L and R) = 39/124.

Blooms: Apply

66. Given the contingency table shown here, find P(R∩L).

A. .250
B. .315
C. .425
D. .850
This is a joint probability: P(R∩L) = 39/124.

Blooms: Apply

67. Given the contingency table shown here, find P(W | M).

A. .145
B. .250
C. .581
D. .687
This is a conditional probability: P(W | M) = 18/31.

Blooms: Apply

68. Given the contingency table shown here, find P(L or W).

A. .750
B. .588
C. .435
D. .895
Use the General Law of Addition: P(L or W) = 93/124 + 72/124 - 54/124.

Blooms: Apply

69. Ramjac Company wants to set up k independent file servers, each capable of running the company's intranet.
Each server has average "uptime" of 98 percent. What must k be to achieve 99.999 percent probability that
the intranet will be "up"?

A. 1
B. 2
C. 3
D. 4
1 - P(F1∩F2∩F3) = 1 - (.02)(.02)(.02) = 1 - .000008 = .999992, so 3 servers will do.

Blooms: Apply
Difficulty: 3 Hard

70. Given the contingency table shown here, what is the probability that a mother in the study smoked during
pregnancy?

A. .2591
B. .3174
C. .5000
D. .7401
This is a marginal probability: P(smoked) = 1122/4331.

Blooms: Apply
Difficulty: 1 Easy

71. Given the contingency table shown here, what is the probability that a mother smoked during pregnancy if
her education level was below high school?

A. .2385
B. .0907
C. .3503
D. .3804
This is a conditional probability: P(smoked | below high school) = 393/1033.

Blooms: Apply

72. Given the contingency table shown here, what is the probability that a mother smoked during pregnancy and
had a college degree?

A. .0111
B. .0428
C. .0803
D. .2385
This is a joint probability: P(smoked and college) = 48/4331.

Blooms: Apply

73. Given the contingency table shown here, what is the probability that a mother smoked during pregnancy or
that she graduated from college?

A. .0111
B. .2591
C. .3861
D. .7850
Use the General Law of Addition: 1122/4331 + 598/4331 - 48/4331.

Blooms: Apply
Difficulty: 3 Hard

74. Given the contingency table shown here, if a mother attended some college but did not have a degree, what
is the probability that she did not smoke during her pregnancy?

A. .2736
B. .8399
C. .8752
D. .9197
This is a conditional probability: 635/756.

Blooms: Apply
Difficulty: 3 Hard

75. Given the contingency table shown here, find the probability that a mother with some college smoked
during pregnancy.
if a randomly chosen student attends a religious school, what is the probability the location is rural?

A. .1078
B. .1746
C. .1601
D. .1117
This is a conditional probability: 121/7561.

Blooms: Apply

76. Given the contingency table shown here, if a survey participant is selected at random, what is the probability
he/she is an undergrad who favors the change to a quarter system?

A. .270
B. .135
C. .338
D. .756
This is a joint probability: P(U and S) = 27/200.

Blooms: Apply

77. Given the contingency table shown here, if a faculty member is chosen at random, what is the probability
he/she opposes the change to a quarter system?

A. .10
B. .25
C. .40
D. .60
This is a marginal probability: P(N | F) = 20/50 = .40.

Blooms: Apply

78. Given the contingency table shown here, what is the probability that a participant selected at random is a
graduate student and opposes the change to a quarter system?

A. .135
B. .250
C. .375
D. .540
This is a joint probability: P(G and N) = 27/200.

Blooms: Apply

79. Given the contingency table shown here, what is the probability that a student attends a public school in a
rural area?

A. .238
B. .714
C. .135
D. .567
This is a marginal probability.

Blooms: Apply
Difficulty: 1 Easy

80. Given the contingency table shown here, if a randomly chosen student attends a religious school, what is the
probability the location is rural?

A. .142
B. .162
C. .167
D. .333
This is a conditional probability: P(R | L) = 5/30 = .167.

Blooms: Apply

81. Given the contingency table shown here, if a randomly chosen student attends school in an inner-city
location, what is the probability that it is a public school?

A. .189
B. .333
C. .500
D. .567
This is a conditional probability: P(P | I) = 35/70 = .500.

Blooms: Apply

82. Given the contingency table shown here, find P(E).

A. .180
B. .300
C. .529
D. .641
This is a marginal probability: P(E) = 300/1000 = .300.

Blooms: Apply
Difficulty: 1 Easy

83. Given the contingency table shown here, find P(E | F).

A. .160
B. .300
C. .340
D. .533
This is a conditional probability: P(E | F) = 160/470 = .340.

Blooms: Apply

84. Given the contingency table shown here, find P(A∩M).

A. .210
B. .360
C. .396
D. .583
This is a joint probability: P(A∩M) = 210/1000 = .210.

Blooms: Apply
Difficulty: 1 Easy

85. Given the contingency table shown here, find P(F or G).

A. .160
B. .470
C. .650
D. .810
Use the General Law of Addition: P(F or G) = 470/1000 + 340/1000 - 160/1000.

Blooms: Apply
Difficulty: 3 Hard

86. Given the contingency table shown here, find the probability that a randomly chosen individual is a female
and economics major.

A. .3404
B. .4700
C. .1600
D. .5333
This is a joint probability: P(F and E) = 160/1000 = .16.

Blooms: Apply

87. Debbie has two stocks, X and Y. Consider the following events:
X = the event that the price of stock X has increased

Y = the event that the price of stock Y has increased
The event "the price of stock X has increased and the price of stock Y has not increased" may be written as

A. X′∩Y
B. X or Y′
C. X∩Y′
D. X or Y
This is a joint probability that also entails the notation for an event's complement.

Blooms: Understand
Difficulty: 1 Easy

88. If P(A | B) = 0.40 and P(B) = 0.30, find P(A∩B).

A. .171
B. .525
C. .571
D. .120
Use the definition for conditional probability.

Blooms: Apply
Difficulty: 3 Hard

89. A company is producing two types of ski goggles. Thirty percent of the production is of type A, and the rest
is of type B. Five percent of all type A goggles are returned within 10 days after the sale, whereas only two
percent of type B are returned. If a pair of goggles is returned within the first 10 days after the sale, the
probability that the goggles returned are of type B is:

A. .014.
B. .140.
C. .070.
D. .483.
Review Bayes' Theorem, and perhaps make a table or tree.

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-08 Use Bayes' Theorem to calculate revised probabilities.
Topic: Bayes' Theorem

90. Given the contingency table shown here, find the joint probability that a call sampled at random out of this
population is local and 2-5 minutes long.

A. .5000
B. .3125
C. .4000
D. .4625
This is a joint probability. You must add the column frequencies.

Blooms: Apply

91. Given the contingency table shown here, if a call is sampled at random, find the marginal probability that
the call is long distance.

A. .3750
B. .6250
C. .4000
D. 300/500
You must first add the column frequencies.

Blooms: Apply

92. If a call is sampled at random, the conditional probability that the call is not "6+" minutes long given that it
is a long distance call is:

A. 120/300.
B. 10/300.
C. .9667.
D. .6667.
Calculate the conditional probability 1 - 10/300 = .9667.

Blooms: Apply
Difficulty: 3 Hard

93. The following table gives a classification of the 10,000 shareholders of Oxnard Xylophone Distributors, Inc.
A few numbers are missing from the table. Given that a shareholder holding 500-999 shares is picked, there
is a 0.625 probability that the shareholder will be a woman. Consequently, what is the number of men
holding 1000 or more shares?

A. 1,000
B. 250
C. 7,500
D. 500
Multiply by the column total and subtract to fill in the remaining frequencies.

Blooms: Apply
Difficulty: 3 Hard

94. In any sample space P(A | B) and P(B | A):

A. are always equal to one another.

B. are never equal to one another.
C. are reciprocals of one another.
D. are equal only if P(A) = P(B).
Use the definition of conditional probability.

Blooms: Remember
Difficulty: 3 Hard

95. If P(A∩B) = 0.50, can P(A) = 0.20?

A. Only if P(A | B) = 0.10

B. Not unless P(B) = 0.30
C. Only if P(B∩A) = 0.60
D. If P(A) = 0.20, then P(A∩B) cannot equal 0.50.
The given information contains a contradiction, because P(A∩B) cannot exceed P(A).

Blooms: Apply

96. The following relationship always holds true for events A and B in a sample space.

A. P(A | B) = P(B | A)

B. P(A∩B) = P(A | B) P(B)
C. P(A | B) = P(B | A) P(A)
Use the definition of conditional probability: P(A | B) = P(A∩B)/P(B).

Blooms: Understand
Difficulty: 3 Hard

97. The following probabilities are given about events A and B in a sample space: P(A) = 0.30, P(B) = 0.40, P(A
or B) = 0.60. We can say that:

A. P(A∩B) = 0.70.

B. P(A) = P(A∩B).
C. P(A∩B) = 0.10.
D. A and B are independent events.
Apply the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B).

Blooms: Apply
Difficulty: 3 Hard

98. If P(A) = 0.35, P(B) = 0.60, and P(A or B) = 0.70, then:

A. A and B are mutually exclusive.

B. P(A∩B) = .15.
C. P(A∩B) = .25.
D. P(A∩B) = .35.
Apply the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B).

Blooms: Apply
Difficulty: 3 Hard

99. The following table shows the survival experience of 1,000 males who retire at age 65:

Based on these data, the probability that a 75-year-old male will survive to age 80 is:

A. 0.596
B. 1 - 0.596 = 0.404
C. 1 - 0.775 = 0.225
D. 0.769
Given that 775 have survived to 75, the probability is 596 divided by 775.

Blooms: Apply
Difficulty: 3 Hard

100. Given the contingency table shown here, find P(G | M).

A. .1800
B. .0450
C. .3333
D. .1350
This is a conditional probability: P(G | M) = 18/54.

Blooms: Apply

101. Given the contingency table shown here, find P(V or S).

A. .3825
B. .4300
C. .0475
D. .4775
Use the General Rule of Addition: P(V or S) = 72/400 + 100/400 - 19/400.

Blooms: Apply
Difficulty: 3 Hard

102. Given the contingency table shown here, find P(V | S).

A. .2639
B. .1900
C. .0475
D. .4144
This is a conditional probability: P(V | S) = 19/100.

Blooms: Apply

103. The manager of Ardmore Pharmacy knows that 25 percent of the customers entering the store buy
prescription drugs, 65 percent buy over-the-counter drugs, and 18 percent buy both types of drugs. What is
the probability that a randomly selected customer will buy at least one of these two types of drugs?

A. .90
B. .85
C. .72
D. .65
Use the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B) = .25 + .65 - .18.

Blooms: Apply

104. Two events are complementary (i.e., they are complements) if:

A. the sum of their probabilities equals one.

B. they are disjoint and their probabilities sum to one.
C. the joint probability of the two events equals one.
D. they are independent events with equal probabilities.
Review rules of probability.

Blooms: Remember

105. Which statement is false?

A. If P(A) = .05, then the odds against event A's occurrence are 19 to 1.
B. If A and B are mutually exclusive events, then P(A or B) = 0.
C. The number of permutations of five things taken two at a time is 20.
Review rules of probability and counting rules.

Blooms: Apply
Difficulty: 3 Hard

106. The number of unique orders in which five items (A, B, C, D, E) can be arranged is:

A. 5.
B. 840.
C. 120.
D. 24.
Apply rules of counting: 5 × 4 × 3 × 2 × 1 = 120.

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-09 Apply counting rules to calculate possible event arrangements.
Topic: Counting Rules

107. If four items are chosen at random without replacement from seven items, in how many ways can the four
items be arranged, treating each arrangement as a different event (i.e., if order is important)?

A. 35
B. 840
C. 5040
D. 24
This is 7P4.

Blooms: Apply
Difficulty: 3 Hard

108. How many ways can we choose three items at random without replacement from five items (A, B, C, D, E)
if the order of the selected items is not important?

A. 60
B. 120
C. 10
D. 24
This is 5C3.

Blooms: Apply
Difficulty: 3 Hard

109. The value of 6C2 is:

A. 15.
B. 30.
C. 720.
D. 12.
Apply the formula for combinations.

Blooms: Remember

110. The value of 4P2 is:

A. 8.
B. 6.
C. 24.
D. 12.
Apply the formula for permutations.

Blooms: Remember

111. The probability that event A occurs, given that event B has occurred, is an example of:

A. a marginal probability.

B. a conditional probability.
C. a joint probability.
D. more than one of the above.
Review definition of conditional probability.

Blooms: Remember
Difficulty: 1 Easy

112. If each of two independent file servers has a reliability of 93 percent and either alone can run the website,
then the overall website availability is:

A. .9951.
B. .8649.
C. .9300.
D. .9522.
Follow the textbook example of reliability for independent events.

Blooms: Remember

113. In a certain city, 5 percent of all drivers have expired licenses, 10 percent have an unpaid parking ticket, and
1 percent have both an expired license and an unpaid parking ticket. Are these events independent?

A. No
B. Yes
C. Can't tell from given information
For independence we would require P(A)P(B) = P(A∩B).

Blooms: Apply

114. In a certain city, 5 percent of all drivers have expired licenses and 10 percent have an unpaid parking ticket.
If these events are independent, what is the probability that a driver has both an expired license and an
unpaid parking ticket?

A. .010
B. .005
C. .001
D. Cannot be determined
By independence P(A∩B) = P(A)P(B) = (.05)(.10).

Blooms: Apply

115. If two events are collectively exhaustive, what is the probability that one or the other will occur?

A. 1.00
B. 0.00
C. 0.50
D. Can't tell from given information
Review definition of probabilities (collectively exhaustive covers all the possibilities).

Blooms: Apply

116. Which best exemplifies a subjective probability?

A. The probability that a female age 30 will have an accident in a week's car rental at Hertz
B. The probability that a pair of dice will come up 7 in a given throw
C. The probability that the summer Olympic games will be held in Chicago in 2020
D. The probability that a checked bag on Flight 1872 will weigh more than 40 pounds
Subjective probabilities are not based on empirical frequencies.

Blooms: Analyze
Learning Objective: 05-02 Distinguish among the three views of probability.
Topic: Probability

117. Which best exemplifies the classical definition of probability?

A. The probability that a male age 50 will have an accident in a week's car rental at Alamo
B. The probability that a pair of dice will come up 7 when they are rolled
C. The probability that the winter Olympic games will be held in Europe in 2022
D. The probability that a checked bag on Flight 1872 will weigh more than 30 pounds
Classical probability is determined a priori by the nature of the experiment.

Blooms: Analyze
Topic: Probability

118. Which best exemplifies the empirical definition of probability?

A. The probability that a Chinese athlete will win the diving competition in the next Olympics
B. The probability that a fair coin will come up heads when it is flipped
C. The probability that your own bank will become insolvent within 12 months
D. The probability that a checked bag on Flight 1872 will weigh less than 30 pounds
Empirical probabilities are based on observed frequencies.

Blooms: Analyze
Topic: Probability

119. From the following tree, find the probability that a randomly chosen person will get the flu vaccine and will
also get the flu.

A. .10
B. .07
C. .19
D. .70
Multiply down the branch: .70 × .10 = .07.

Blooms: Apply
Learning Objective: 05-07 Interpret a tree diagram.
Topic: Tree Diagrams

120. From the following tree, find the probability that a randomly chosen person will not get a vaccination and
will not get the flu.

A. .18
B. .60
C. .19
D. .70
Multiply down the branch: .30 × .60 = .18.

Blooms: Apply

121. From the following tree, find the probability that a randomly chosen person will get the flu.

A. .19
B. .07
C. .81
D. .70
Multiply down two branches and add .07 to .12. That is (.70)(.10) + (.30)(.40).

Blooms: Apply

122. At Joe's Restaurant, 80 percent of the diners are new customers (N), while 20 percent are returning
customers (R). Fifty percent of the new customers pay by credit card, compared with 70 percent of the
regular customers. If a customer pays by credit card, what is the probability that the customer is a new
customer?

A. .7407
B. .8000
C. .5400
D. .5000

Blooms: Remember
Difficulty: 3 Hard

123. At Dolon General Hospital, 30 percent of the patients have Medicare insurance (M) while 70 percent do not
have Medicare insurance (M´). Twenty percent of the Medicare patients arrive by ambulance, compared
with 10 percent of the non-Medicare patients. If a patient arrives by ambulance, what is the probability that
the patient has Medicare insurance?

A. .7000
B. .5000
C. .4615
D. .1300

Blooms: Remember
Difficulty: 3 Hard

Chapter 01
Overview of Statistics

True / False Questions

1. Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.

True False

2. Inferential statistics refers to generalizing from a sample to a population, estimating unknown parameters,
drawing conclusions, and making decisions.

True False

3. Descriptive statistics refers to summarizing data rather than generalizing about the population.

True False

4. Estimating parameters and testing hypotheses are important aspects of descriptive statistics.

True False

5. Inconsistent treatment of data by a researcher is a symptom of poor survey or research design.

True False

6. Empirical data are collected through observations and/or experiments.

True False

7. Business intelligence refers to collecting, storing, accessing, and analyzing data on the company's operations in
order to make better business decisions.

True False

8. When a statistician omits data contrary to her findings in a study, she is justified as long as the sample supports
her objective.

True False

9. A strong correlation between A and B would imply that B is caused by A.

True False

10. The post hoc fallacy says that when B follows A then B is caused by A.

True False

11. A statistical test may be significant yet have no practical importance.

True False

12. Valid statistical inferences cannot be made when sample sizes are small.

True False

13. Statistics is an essential part of critical thinking because it allows us to transform the empirical evidence from a
sample so it will agree with our preferred conclusions.

True False

14. Statistical challenges include imperfect data, practical constraints, and ethical dilemmas.

True False

15. A business data analyst needs a PhD in statistics.

True False

16. The science of statistics tells us whether the sample evidence is convincing.

True False

17. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links.

True False

18. In business communication, a table of numbers is preferred to a graph because it is more able to convey
meaning.

True False

19. Statistical data analysis can often distinguish between real vs. perceived ethical issues.

True False

20. Excel has limited use in business because advanced statistical software is widely available.

True False

21. Statistics helps surmount language barriers to solve problems in multinational businesses.

True False

22. Statistics can help you handle either too little or too much information.

True False

23. Predicting a presidential candidate's percentage of the statewide vote from a sample of 800 voters would be an
example of inferential statistics.

True False

24. Surveying electric vehicle owners would provide a representative random sample of Americans' views on
global warming policies.

True False

25. An example of descriptive statistics would be reporting the percentage of students in your accounting class that
attended the review session for the last exam.

True False


26. "Bob must be rich. He's a lawyer, and lawyers make lots of money." This statement best illustrates which
fallacy?

A. Using poor survey methods

B. Confusing significance with importance
C. Unconscious bias
D. Generalizing from an average to an individual

27. Which is not an ethical obligation of a statistician?

A. To know and follow accepted procedures

B. To ensure data integrity and accurate calculations
C. To support client wishes in drawing conclusions from the data
D. To acknowledge sources of financial support

28. Which of the following statements is correct?

A. A parameter is a measure that is calculated from a sample.

B. Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.
C. For day-to-day business data analysis, most firms rely on a large staff of expert statisticians.
D. A statistical test result that is significant also has practical importance.

29. Which is least likely to be an application where statistics will be useful?

A. Predicting whether an airfare is likely to rise or fall

B. Designing the most desirable features for a ski pass
C. Deciding whether offering Rice Krispies improves restaurant sales
D. Choosing the wording of a corporate policy prohibiting smoking

30. Because 25 percent of the students in my morning statistics class watch eight or more hours of television a
week, I conclude that 25 percent of all students at the university watch eight or more hours of television a week.
The most important logical weakness of this conclusion would be:

A. relying on any sample instead of surveying every student.

B. using a sample that may not be representative of all students.
C. failing to correct for unconscious interviewer bias.
D. assuming cause and effect where none exists.

31. Which of the following is not a characteristic of an ideal statistician?

A. Technically current (e.g., software)

B. Communicates well (both written and oral)
C. Advocates client's objectives
D. Can deal with imperfect information

32. Which of the following statements is not true?

A. Statistics helps refine theories through ongoing hypothesis testing.

C. Estimating parameters is an important aspect of descriptive statistics.
D. Statistical challenges include imperfect data and practical constraints.

33. Which is not a practical constraint facing the business researcher or data analyst?

A. Time and money are always limited.

B. The world is no laboratory, so some experiments are impractical.
C. Research on human subjects is fraught with danger and ethical issues.
D. Survey respondents usually will tell the truth if well compensated.

34. Which is not an essential characteristic of a good business data analyst?

A. Effective writer
B. Stays current on techniques
C. Has a Ph.D. or master's degree in statistics

35. An ethical statistical consultant would not always:

A. follow accepted statistical procedures.

B. support management's desired conclusions.
C. acknowledge sources of financial support.
D. report limitations of the data.

36. The NASA experiences with the Challenger and Columbia disasters suggest that:

A. statistics is not applicable to space endeavors.

B. limited data may still contain important clues.
C. good engineers can eliminate risks in space flight.
D. space flight is only slightly more risky than commercial air travel.

37. Which is not a goal of the ethical data analyst?

A. To be an honest broker of data

B. To learn to downplay inconvenient data
C. To understand the firm's code of ethics (or help create one)
D. To look for hidden agendas in data collection


A. A statistic is a single measure (usually numerical) that is calculated from a sample.
D. A statistical test may be significant yet have no practical importance.

39. "Smoking is not harmful. My Aunt Harriet smoked, but lived to age 90." This best illustrates which fallacy?

A. Unconscious bias
B. Significance versus practical importance
C. Post hoc reasoning
D. Small sample generalization

40. Which best illustrates the distinction between statistical significance and practical importance?

A. "In 2006, 240 out of 400 statistics students at Oxnard Technical College sold their textbooks at the end of the
semester, compared with 220 out of 330 students in 2005, a significant decrease."
B. "Our new manufacturing technique has increased the life of the 80 GB USB AsimoDrive external hard disk
significantly, from 240,000 hours to 250,000 hours."
C. "In 50,000 births, the new vaccine reduced the incidence of infant mortality in Morrovia significantly from
14.2 deaths per 1000 births to 10.3 deaths per 1000 births."
D. "The new Sky Penetrator IV business jet's cruising range has increased significantly from 3,975 miles to
4,000 miles."

41. "Circulation fell in the month after the new editor took over the newspaper Oxnard News Herald. The new
editor should be fired." Which is not a serious fallacy in this conclusion?

A. Generalizing from a small sample

B. Applying post hoc reasoning
C. Failing to identify causes
D. Using a biased sample

42. An ethical data analyst would be least likely to:

A. check data for accuracy.

B. cite his/her data sources and their limitations.
D. rely on consultants for all calculations.

43. "Tom's SUV rolled over. SUVs are dangerous." This best illustrates which fallacy?

A. Unconscious bias

44. "Bob didn't wear his lucky T-shirt to class, so he failed his chemistry exam." This best illustrates which
fallacy?

A. Small sample generalization

B. Poor survey methods
D. More than one of the above

45. Which is not a reason for an average student to study statistics?

A. Improve technical writing skills

B. Gain information management skills
C. Enhance technical literacy
D. Learn stock market strategies

46. Which is not a likely area of application of statistics in business?

A. Auditing supplier invoices for correct payment

B. Questioning the executives' strategic decisions
C. Looking for patterns in a large marketing database
D. Making forecasts of several key product lines

47. Which is not a likely task of descriptive statistics?

A. Summarizing a sample
B. Describing data numerically
C. Estimating unknown parameters
D. Making visual displays of data

48. We would associate the term inferential statistics with which task?

A. Making visual displays of data

B. Estimating unknown parameters
C. Describing a sample of data
D. Tabulating a survey

Short Answer Questions

49. How might statistics be useful in determining the correct width of doorways in a convalescent care facility so
that 99 percent of the "typical" wheelchairs can pass through the doorway without coming closer than 6 inches
on either side?

50. Established risk factors such as cholesterol and obesity can predict who will get heart disease about 80 percent
of the time. Adding a new test called CRP can raise this percentage to 81 percent—a statistically significant
difference. But would this improvement be of practical importance to a physician? To a patient? Discuss.

51. Bob said, "Since statistics cannot tell for certain whether one thing caused another, there is no point in even
reporting probabilities." Argue both for and against Bob's statement.

52. Bob said, "Why study math and statistics? I'm majoring in human resources because it's people that are
important in business, not numbers." Argue both for and against Bob's statement.

Chapter 01 Overview of Statistics Answer Key


1. Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.

TRUE
This is one of many good definitions of statistics.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define statistics and explain some of its uses in business.
Topic: What is Statistics?

2. Inferential statistics refers to generalizing from a sample to a population, estimating unknown parameters,
drawing conclusions, and making decisions.

TRUE
We can use statistics either to describe data or to infer something about a population.

Blooms: Remember
Difficulty: 1 Easy
Topic: Statistics in Business

3. Descriptive statistics refers to summarizing data rather than generalizing about the population.

TRUE
When we do not infer, we are only describing the available sample data.

Blooms: Remember
Difficulty: 1 Easy

4. Estimating parameters and testing hypotheses are important aspects of descriptive statistics.

FALSE
When we generalize to a population we are using inferential statistics.

Blooms: Remember

5. Inconsistent treatment of data by a researcher is a symptom of poor survey or research design.

FALSE
Good survey data can still be misused or misinterpreted.

Blooms: Understand
Learning Objective: 01-04 State the common challenges facing business professionals using statistics.
Topic: Critical Thinking

6. Empirical data are collected through observations and/or experiments.

TRUE
Empirical data are contrasted with a priori estimates (e.g., expecting 10 heads in 20 coin flips).

AACSB: Reflective Thinking
Blooms: Remember

7. Business intelligence refers to collecting, storing, accessing, and analyzing data on the company's operations
in order to make better business decisions.

TRUE
See Wikipedia for similar definitions of business intelligence.

Blooms: Remember
Difficulty: 1 Easy

8. When a statistician omits data contrary to her findings in a study, she is justified as long as the sample
supports her objective.

FALSE
We do not omit data unless it is proven to be an error.

AACSB: Ethics
Blooms: Understand
Topic: Statistical Challenges

9. A strong correlation between A and B would imply that B is caused by A.

FALSE
Temporal sequence does not prove causation.

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-05 List and explain common statistical pitfalls.

10. The post hoc fallacy says that when B follows A then B is caused by A.

TRUE
Temporal sequence does not prove causation.

Blooms: Remember
Difficulty: 1 Easy

11. A statistical test may be significant yet have no practical importance.

TRUE
Large samples sometimes reveal tiny effects that may not matter very much.

Blooms: Understand
Difficulty: 1 Easy

12. Valid statistical inferences cannot be made when sample sizes are small.

FALSE
Small samples may be all that we have, and statistics does have rules for them.

Blooms: Understand

13. Statistics is an essential part of critical thinking because it allows us to transform the empirical evidence
from a sample so it will agree with our preferred conclusions.

FALSE
Ethical analysts challenge their beliefs with data rather than forcing data to their beliefs.

AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy

14. Statistical challenges include imperfect data, practical constraints, and ethical dilemmas.

TRUE
The list is longer, but these three are big challenges.

AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy

15. A business data analyst needs a PhD in statistics.

FALSE
Every business person does some statistics.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 List reasons for a business student to study statistics.
Topic: Why Study Statistics?

16. The science of statistics tells us whether the sample evidence is convincing.

TRUE
There are clear scientific rules for statistical inference.

Blooms: Understand
Difficulty: 1 Easy

17. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal
links.

TRUE
These are among many other pitfalls.

Blooms: Remember
Difficulty: 1 Easy

18. In business communication, a table of numbers is preferred to a graph because it is more able to convey
meaning.

FALSE
Although tables can show exact numbers, a good graph may be more helpful.

AACSB: Communication
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-03 Explain the uses of statistics in business.

19. Statistical data analysis can often distinguish between real vs. perceived ethical issues.

TRUE
Proper framing of a question may reveal that there is no real ethical issue.

AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy

20. Excel has limited use in business because advanced statistical software is widely available.

FALSE
Small businesses may lack advanced software (and training to use it).

AACSB: Technology
Blooms: Understand
Difficulty: 1 Easy

21. Statistics helps surmount language barriers to solve problems in multinational businesses.

TRUE
Statistics is part of the international language of science.

AACSB: Diversity
Blooms: Remember
Difficulty: 1 Easy

22. Statistics can help you handle either too little or too much information.

TRUE
Statistical tasks include sampling to obtain more information or finding meaning in large piles of data.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy

23. Predicting a presidential candidate's percentage of the statewide vote from a sample of 800 voters would be
an example of inferential statistics.

TRUE
Generalizing from a sample is an inference.

Blooms: Understand

24. Surveying electric vehicle owners would provide a representative random sample of Americans' views on
global warming policies.

FALSE
Not a random sample of all drivers.

Blooms: Apply
Difficulty: 1 Easy

25. An example of descriptive statistics would be reporting the percentage of students in your accounting class
that attended the review session for the last exam.

TRUE
As long as you don't generalize, it is a descriptive statistic.

Blooms: Apply


26. "Bob must be rich. He's a lawyer, and lawyers make lots of money." This statement best illustrates which
fallacy?

A. Using poor survey methods

B. Confusing significance with importance
C. Unconscious bias
D. Generalizing from an average to an individual
Many lawyers do not work for big firms. (Remember My Cousin Vinnie?)

Blooms: Apply

27. Which is not an ethical obligation of a statistician?

A. To know and follow accepted procedures

B. To ensure data integrity and accurate calculations
C. To support client wishes in drawing conclusions from the data
D. To acknowledge sources of financial support
Review the list of ethical responsibilities.

AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy

28. Which of the following statements is correct?

A. A parameter is a measure that is calculated from a sample.

D. A statistical test result that is significant also has practical importance.
Check definitions (parameter, sample, statistics, pitfalls) and uses of statistics.

Blooms: Remember

29. Which is least likely to be an application where statistics will be useful?

A. Predicting whether an airfare is likely to rise or fall

B. Designing the most desirable features for a ski pass
C. Deciding whether offering Rice Krispies improves restaurant sales
D. Choosing the wording of a corporate policy prohibiting smoking
Policy wording is probably up to writers.

Blooms: Apply

30. Because 25 percent of the students in my morning statistics class watch eight or more hours of television a
week, I conclude that 25 percent of all students at the university watch eight or more hours of television a
week. The most important logical weakness of this conclusion would be:

A. relying on any sample instead of surveying every student.

B. using a sample that may not be representative of all students.
C. failing to correct for unconscious interviewer bias.
D. assuming cause and effect where none exists.
Generalizing from a nonrandom sample is risky.

Blooms: Apply
Difficulty: 3 Hard

31. Which of the following is not a characteristic of an ideal statistician?

A. Technically current (e.g., software)

B. Communicates well (both written and oral)
C. Advocates client's objectives
There is an unattractive name for a consultant who always agrees with the client.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy


A. Statistics helps refine theories through ongoing hypothesis testing.

C. Estimating parameters is an important aspect of descriptive statistics.
D. Statistical challenges include imperfect data and practical constraints.
Estimating a population parameter is an inference.

Blooms: Remember

33. Which is not a practical constraint facing the business researcher or data analyst?

A. Time and money are always limited.

B. The world is no laboratory, so some experiments are impractical.
C. Research on human subjects is fraught with danger and ethical issues.
D. Survey respondents usually will tell the truth if well compensated.
Paid respondents may try to tell you what you want to hear.

AACSB: Ethics
Blooms: Understand

34. Which is not an essential characteristic of a good business data analyst?

A. Effective writer

B. Stays current on techniques
C. Has a Ph.D. or master's degree in statistics
No advanced degree is needed for basic statistics, which is why all business students study it.

Blooms: Remember
Difficulty: 1 Easy

35. An ethical statistical consultant would not always:

A. follow accepted statistical procedures.

B. support management's desired conclusions.
D. report limitations of the data.
There is a nasty name for a consultant who always agrees with management.

AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy

36. The NASA experiences with the Challenger and Columbia disasters suggest that:

A. statistics is not applicable to space endeavors.

B. limited data may still contain important clues.
C. good engineers can eliminate risks in space flight.
D. space flight is only slightly more risky than commercial air travel.
When small samples are all that we have, we must study them carefully.

Blooms: Apply
Difficulty: 1 Easy

37. Which is not a goal of the ethical data analyst?

A. To be an honest broker of data

B. To learn to downplay inconvenient data
C. To understand the firm's code of ethics (or help create one)
D. To look for hidden agendas in data collection
We do not ignore data unless it is an actual error.

AACSB: Ethics
Blooms: Remember


A. A statistic is a single measure (usually numerical) that is calculated from a sample.
D. A statistical test may be significant yet have no practical importance.
Few firms have staffs of statistics experts, so all of us need to know the basics.

Blooms: Understand

39. "Smoking is not harmful. My Aunt Harriet smoked, but lived to age 90." This best illustrates which fallacy?

A. Unconscious bias

Individual cases sometimes violate causation.

Blooms: Apply

40. Which best illustrates the distinction between statistical significance and practical importance?

A. "In 2006, 240 out of 400 statistics students at Oxnard Technical College sold their textbooks at the end
of the semester, compared with 220 out of 330 students in 2005, a significant decrease."
B. "Our new manufacturing technique has increased the life of the 80 GB USB AsimoDrive external hard
disk significantly, from 240,000 hours to 250,000 hours."
C. "In 50,000 births, the new vaccine reduced the incidence of infant mortality in Morrovia significantly
from 14.2 deaths per 1000 births to 10.3 deaths per 1000 births."
D. "The new Sky Penetrator IV business jet's cruising range has increased significantly from 3,975 miles to
4,000 miles."
Consumers would not notice because 240,000 hours is 27 years.

Blooms: Evaluate
Difficulty: 3 Hard

41. "Circulation fell in the month after the new editor took over the newspaper Oxnard News Herald. The new
editor should be fired." Which is not a serious fallacy in this conclusion?

A. Generalizing from a small sample

B. Applying post hoc reasoning
C. Failing to identify causes
D. Using a biased sample
There is no real sample, just shaky logical inferences.

Blooms: Evaluate

42. An ethical data analyst would be least likely to:

A. check data for accuracy.

B. cite his/her data sources and their limitations.
D. rely on consultants for all calculations.
When you farm out your calculations, you have lost control of your work.

AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy

43. "Tom's SUV rolled over. SUVs are dangerous." This best illustrates which fallacy?

A. Unconscious bias

One instance proves little.

Blooms: Apply

44. "Bob didn't wear his lucky T-shirt to class, so he failed his chemistry exam." This best illustrates which
fallacy?

A. Small sample generalization

B. Poor survey methods
D. More than one of the above
There is no credible causal link between these two events.

Blooms: Apply

45. Which is not a reason for an average student to study statistics?

A. Improve technical writing skills

B. Gain information management skills
C. Enhance technical literacy
D. Learn stock market strategies
To learn about the stock market, you should probably study finance.

Blooms: Remember
Difficulty: 1 Easy

46. Which is not a likely area of application of statistics in business?

A. Auditing supplier invoices for correct payment

B. Questioning the executives' strategic decisions
C. Looking for patterns in a large marketing database
D. Making forecasts of several key product lines
Business strategy may involve some statistics but not like the others listed here.

Blooms: Understand
Difficulty: 1 Easy

47. Which is not a likely task of descriptive statistics?

A. Summarizing a sample

B. Describing data numerically
C. Estimating unknown parameters
D. Making visual displays of data

Blooms: Remember

48. We would associate the term inferential statistics with which task?

A. Making visual displays of data

B. Estimating unknown parameters
C. Describing a sample of data
D. Tabulating a survey

Blooms: Remember
Difficulty: 1 Easy


49. How might statistics be useful in determining the correct width of doorways in a convalescent care facility
so that 99 percent of the "typical" wheelchairs can pass through the doorway without coming closer than 6
inches on either side?

Large samples could be taken of wheelchair widths and the space needed on either side, and averages and
the 99th percentile could be computed for widths of major brands of old and new wheelchairs, along with the
proportion of each type of wheelchair in use.
Feedback: Large samples could be taken of wheelchair widths and the space needed on either side, and
averages could be computed. Statistics can then be applied to find the 99th percentiles. One way is to
measure the widths of major brands of wheelchairs currently being sold, being sure that people are sitting in
them and using their hands to move the wheels to measure the necessary clearance. Then take a similar
survey of older wheelchairs that still are used. Estimate the proportion of each type of wheelchair in use, to
determine what width is required for 99 percent to meet the requirement. You might also find that some
wheelchair users carry a cane in their laps, which may protrude. To learn how to estimate percentiles, you
need a basic class in statistics.

Blooms: Create
Difficulty: 3 Hard

50. Established risk factors such as cholesterol and obesity can predict who will get heart disease about 80
percent of the time. Adding a new test called CRP can raise this percentage to 81 percent—a statistically
significant difference. But would this improvement be of practical importance to a physician? To a patient?
Discuss.

In tests involving millions of patients, even a slightly improved test might benefit many individuals, though
to the individual patient or physician the benefit might not be apparent.
Feedback: A single physician might feel that such a small improvement in medical diagnostics might not
help very much in predicting a particular patient's chances of getting heart disease. However, in tests
involving millions of patients, even a slightly improved test might benefit many individuals. It is a question
of perspective (micro versus macro). Also, as medical tests improve, the potential incremental gains become
smaller.

Blooms: Evaluate
Difficulty: 3 Hard

51. Bob said, "Since statistics cannot tell for certain whether one thing caused another, there is no point in even
reporting probabilities." Argue both for and against Bob's statement.

We usually cannot prove cause and effect using statistics alone, but correlations between events can point
researchers in a certain direction. Statistics is a guide to action when there is a logical reason to suppose that
cause and effect may exist, even if science hasn't yet proven the case fully.
Feedback: Bob is correct in saying that we usually cannot prove cause and effect using statistics alone. But
probabilities and correlations between events can point researchers in a certain direction. And many people
do accept that statistics is a guide to action, if there is some logical reason to suppose that cause and effect
may exist, even if science hasn't yet proven the case fully. Think how many people purchase health food and
vitamin supplements, or seek holistic treatments for various diseases.

Blooms: Evaluate

52. Bob said, "Why study math and statistics? I'm majoring in human resources because it's people that are
important in business, not numbers." Argue both for and against Bob's statement.

Bob is correct in that organizations consist of people whose decisions determine the company's financial
well-being and future, but all organizations (including HR specialists) rely on statistics and data to keep
track of their operations, assets (human and financial), and financial progress.
Feedback: Bob is correct in that organizations consist of people, and their interactions and decisions
determine the company's financial well-being and future. However, he is missing something essential. All
organizations rely on statistics and data to keep track of their operations and financial progress. Without
statistics and math, no company can exist. And human resources professionals use data just as much as any
other business specialty. In fact, many statistical techniques were developed by psychologists in order to
help understand humans and their interactions.

Blooms: Evaluate

Chapter 02
Data Collection


1. Categorical data have values that are described by words rather than numbers.

True False

2. Numerical data can be either discrete or continuous.

True False

3. Categorical data are also referred to as nominal or qualitative data.

True False

4. The number of checks processed at a bank in a day is an example of categorical data.

True False

5. The number of planes per day that land at an airport is an example of discrete data.

True False

6. The weight of a bag of dog food is an example of discrete data.

True False

7. In last year's annual report, Thompson Distributors indicated that it had 12 regional warehouses. This is an
example of ordinal level data.

True False

8. Nominal data refer to data that can be ordered in a natural way.

True False

9. This year, Oxnard University produced two football All-Americans. This is an example of continuous data.

True False

10. The type of statistical test that we can perform is independent of the level of measurement of the variable of
interest.

True False

11. Your weight recorded at your annual physical would not be ratio data, because you cannot have zero weight.

True False

12. The level of measurement for categorical data is nominal.

True False

13. Temperature measured in degrees Fahrenheit is an example of interval data.

True False

14. The closing price of a stock is an example of ratio data.

True False

15. The Statistical Abstract of the United States is a huge annual compendium of data for the United States, and it is
available online free of charge.

True False

16. Ordinal data can be treated as if it were nominal data but not vice versa.

True False

17. Responses on a seven-point Likert scale are usually treated as ratio data.

True False

18. Likert scales are especially important in opinion polls and marketing surveys.

True False

19. Ordinal data are data that can be ranked based on some natural characteristic of the items.

True False

20. Ratio data are distinguished from interval data by the presence of a zero reference point.

True False

21. It is better to attempt a census of a large population instead of relying on a sample.

True False

22. Judgment sampling and convenience sampling are nonrandom sampling techniques.

True False

23. A problem with judgment sampling is that the sample may not reflect the population.

True False

24. When the population is large, a sample estimate is usually preferable to a census.

True False

25. Sampling error is avoidable by choosing the sample scientifically.

True False

26. A sampling frame is used to identify the target population in a statistical study.

True False

27. By taking a systematic sample, in which we select every 50th shopper arriving at a specific store, we are
approximating a random sample of shoppers.

True False

28. A worker collecting data from every other shopper who leaves a store is taking a simple random sample of
customer opinion.

True False

29. Creating a list of people by taking the third name listed on every 10th page of the phone book is an example of
convenience sampling.

True False

30. Internet surveys posted on popular websites have no bias since anyone can reply.

True False

31. Analysis of month-by-month changes in stock market prices during the most recent recession would require the
use of time series data.

True False

32. A cluster sample is a type of stratified sample that is based on geographical location.

True False

33. An advantage of a systematic sample is that no list of enumerated data items is required.

True False

34. Telephone surveys often have a low response rate and fail to reach the desired population.

True False

35. Mail surveys are attractive because of their high response rates.

True False

36. A problem with convenience sampling is that the target population is not well defined.

True False

37. If you randomly sample 50 students about their favorite places to eat, the data collected would be referred to as
cross-sectional data.

True False

38. The number of FedEx shipping centers in each of 50 cities would be ordinal level data.

True False

39. Internet surveys posted on popular websites such as MSN.com suffer from nonresponse bias.

True False

40. Different variables are usually shown as columns of a multivariate data set.

True False

41. Each row in a multivariate data matrix is an observation (e.g., an individual response).

True False

42. A bivariate data set has only two observations on a variable.

True False

43. Running times for 3,000 runners in a 5k race would be a multivariate data set.

True False

44. Running times for 500 runners in a 5k race would be a univariate data set.

True False

45. A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set.

True False

46. The daily closing price of Apple stock over the past month would be a time series.

True False

47. The number of words on 50 randomly chosen textbook pages would be cross-sectional data.

True False

48. A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly Disagree" is
intended to prevent "neutral" choices.

True False

49. Private statistical databases (e.g., CRSP) are usually free.

True False


50. An investment firm rates bonds for AardCo Inc. as "B+," while bonds of Deva Corp. are rated "AA." Which
level of measurement would be appropriate for such data?

A. Nominal
B. Ordinal
C. Interval
D. Ratio

51. Which variable is least likely to be regarded as ratio data?

A. Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes)
B. Weight of a randomly chosen student (pounds)
C. Number of fatalities in a randomly chosen traffic disaster (persons)
D. Student's evaluation of a professor's teaching (Likert scale)

52. Which of the following is numerical data?

A. Your gender
B. The brand of cell phone you own
C. Whether you have an American Express card
D. The fuel economy (MPG) of your car

53. Measurements from a sample are called:

A. statistics.
B. inferences.
C. parameters.
D. variables.

54. Quantitative variables use which two levels of measurement?

A. Ordinal and ratio

B. Interval and ordinal
C. Nominal and ordinal
D. Interval and ratio

55. Temperature in degrees Fahrenheit is an example of a(n) __________ variable.

A. nominal
B. ordinal
C. interval
D. ratio

56. Using a sample to make generalizations about an aspect of a population is called:

A. data mining.
B. descriptive statistics.
C. random sampling.
D. statistical inference.

57. Your telephone area code is an example of a(n) ____________ variable.

A. nominal
B. ordinal
C. interval
D. ratio

58. Which is least likely to be regarded as a ratio variable?

A. A critic's rating of a restaurant on a 1 to 4 scale

B. Automobile exhaust emission of nitrogen dioxide (milligrams per mile)
C. Number of customer complaints per day at a cable TV company office
D. Cost of an eBay purchase

59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.

A. nominal
B. ordinal
C. interval
D. ratio

60. Your rating of the food served at a local restaurant using a three-point scale of 0 = gross, 1 = decent, 2 =
yummy is ___________ data.

A. nominal
B. ordinal
C. interval
D. ratio

61. The number of passengers "bumped" on a particular airline flight is ____________ data.

A. nominal
B. ordinal
C. interval
D. ratio

62. Which should not be regarded as a continuous random variable?

A. Tonnage carried by a randomly chosen oil tanker at sea

B. Wind velocity at 7 o'clock this morning
C. Number of personal fouls by the Miami Heat in a game
D. Length of time to play a Wimbledon tennis match

63. Which of the following is not true?

A. Categorical data have values that are described by words rather than numbers.
B. Categorical data are also referred to as nominal or qualitative data.
C. The number of checks processed at a bank in a day is categorical data.
D. Numerical data can be either discrete or continuous.

64. Which of the following is true?

A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is ordinal data.
B. The duration (minutes) of a flight from Boston to Minneapolis is ratio data.
C. The number of Nobel Prize-winning faculty at Oxnard University is continuous data.
D. The number of regional warehouses owned by Jankord Industries is ordinal data.

65. Which statement is correct?

A. Judgment sampling is preferred to systematic sampling.

B. Sampling without replacement introduces bias in our estimates of parameters.
C. Cluster sampling is useful when strata characteristics are unknown.
D. Focus groups usually work best without a moderator.

66. A Likert scale:

A. yields interval data if scale distances are equal.

B. must have an odd number of scale points.
C. must have a verbal label on each scale point.
D. is rarely used in marketing surveys.

67. Which is most nearly correct regarding sampling error?

A. It can be eliminated by increasing the sample size.

B. It cannot be eliminated by any statistical sampling method.
C. It can be eliminated by using Excel's =RANDBETWEEN() function.
D. It can be eliminated by utilizing systematic random sampling.


A. Random dialing phone surveys have low response and are poorly targeted.
B. Selection bias means that many respondents dislike the interviewer.
C. Simple random sampling requires a list of the population.
D. Web surveys are economical but suffer from nonresponse bias.

69. Judgment sampling is sometimes preferred over random sampling, for example, when:

A. the desired sample size is much larger than the population.

B. the sampling budget is large and the population is conveniently located.
C. time is short and the sampling budget is limited.
D. the population is readily accessible and sampling is nondestructive.

70. An advantage of convenience samples is that:

A. the required sample size is easier to calculate.

B. sampling error can be reduced.
C. computation of statistics is easier.
D. they are often quicker and cheaper.

71. Before deciding whether to assess heavy fines against noisy airlines, which sampling method would the Federal
Aviation Administration probably use to measure the peak noise from departing jets as measured by a ground-
level observer at a point one mile from the end of the departure runway?

A. Radio survey of pilots.

B. Simple random sample.
C. Judgment sample.
D. Stratified sample.

72. Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by picking every student
who was wearing red that day. Which kind of sample is this?

A. Simple random sample

B. Judgment sample
C. Systematic sample
D. Convenience sample

73. Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every 15th
folder. Which sampling method is this?


B. Systematic sample
C. Stratified sample
D. Cluster sample

74. Which of the following is not a likely reason for sampling?

A. The destructive nature of certain tests

B. The physical impossibility of checking all the items in the population
C. Prohibitive cost of studying the entire population
D. The expense of obtaining random numbers

75. Comparing a census of a large population to a sample drawn from it, we expect that the:

A. sample is usually a more practical method of obtaining the desired information.

B. accuracy of the observations in the census is surely higher than in the sample.
C. sample must be a large fraction of the population to be accurate.

76. A stratified sample is sometimes recommended when:

A. the sample size is very large.

B. the population is small compared to the sample.
C. distinguishable strata can be identified in the populations.
D. the population is spread out geographically.

77. A random sample is one in which the:

A. probability that an item is selected for the sample is the same for all population items.
B. population items are selected haphazardly by experienced workers.
C. items to be selected from the population are specified based on expert judgment.
D. probability of selecting a population item depends on the item's data value.

78. An advantage of convenience samples over random samples is that:

A. they are easy to analyze.

B. it is easier to determine the sample size needed.
C. it is easier to calculate the sampling errors involved.
D. data collection cost is reduced.

79. To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its customers by age,
gender, and location. Which is an advantage of this type of sampling, as opposed to other sampling methods?

A. It is less intrusive on customers' privacy.

B. It does not require random numbers.
C. It gives faster results.
D. It can give more accurate results.

80. An accounting professor wishing to know how many MBA students would take a summer elective in
international accounting did a survey of the class she was teaching. Which kind of sample is this?


B. Cluster sample

81. A binary variable (also called a dichotomous variable or dummy variable) has:

A. only two possible values.

B. continuous scale values.
C. rounded data values.
D. ordinal or interval values.

82. A population has groups that have a small amount of variation within them, but large variation among or
between the groups themselves. The proper sampling technique is:

A. simple random.
B. stratified.
C. cluster.
D. judgment.

83. A manager chose two people from his team of eight to give an oral presentation because she felt they were
representative of the whole team's views. What sampling technique did she use in choosing these two people?

A. Convenience
B. Simple random
C. Judgment
D. Cluster

84. Sampling bias can best be reduced by:

A. using appropriate data coding.

B. having a computer tabulate the results.
C. utilizing random sampling.
D. taking a judgment sample.

85. A sampling technique used when groups are defined by their geographical location is:

A. cluster sampling.
B. convenience sampling.
C. judgment sampling.
D. random sampling.

86. If we choose 500 random numbers using Excel's function =RANDBETWEEN(1,99), we would most likely find
that:

A. numbers near the mean (50) would tend to occur more frequently.
B. numbers near 1 and 99 would tend to occur less frequently.
C. some numbers would occur more than once.
D. the numbers would have a clear pattern.

87. A problem with nonrandom sampling is that:

A. larger samples need to be taken to reduce the sampling error inherent in this approach.
B. not every item in the population has the same chance of being selected, as it should.
C. it is usually more expensive than random sampling.
D. it generally provides lower response rates than random sampling.

88. From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial flights in
each region for compliance with legal fuel and weight requirements. This is an example of:

A. simple random sampling.

B. stratified random sampling.
C. cluster sampling.
D. judgment sampling.

89. Which of the following is a correct statement?

A. Choosing the third person listed on every fifth page of the phone book is stratified sampling.
B. An advantage of a systematic sample is that no list of enumerated data items is required.
C. Convenience sampling is used to study shoppers in convenience stores.
D. Judgment sampling is an example of true random sampling.

90. Which of the following is false?

A. Sampling error is the difference between the true parameter and the sample estimate.
B. Sampling error is a result of unavoidable random variation in a sample.
C. A sampling frame is chosen from the target population in a statistical study.
D. The target population must first be defined by a full list or data file of all individuals.

91. When we are choosing a random sample and we do not place chosen units back into the population, we are:

A. sampling with replacement.

B. sampling without replacement.
C. using a systematic sample.
D. using a voluntary sample.

92. Which method is likely to be used by a journalism student who is casually surveying opinions of students about
the university's cafeteria food for an article that she is writing?


B. Systematic random sample
C. Cluster sample


A. Mail surveys are cheap but have low response rates.

B. Coverage error is when respondents give untruthful answers.
C. Focus groups are nonrandom but can probe issues more deeply.
D. Surveys posted on popular websites suffer from selection bias.

94. Which is a time series variable?

A. VISA balances of 30 students on December 31 of this year

B. Net earnings reported by Xena Corp. for the last 10 quarters
C. Dollar exchange rates yesterday against 10 other world currencies
D. Titles of the top 10 movies in total revenue last week

95. An observation in a data set would refer to:

A. only a variable whose value is recorded by visual inspection.

B. a data item whose value is numerical (as opposed to categorical).
C. a single row that contains one or more observed variables.
D. the values of all the variables in the entire data set.

96. A multivariate data set contains:

A. more than two observations.

B. more than two categorical variables.
C. more than two variables.
D. more than two levels of measurement.

97. The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra hospital stay that
occurs when heart surgery patients experience postoperative atrial fibrillation. They divide the United States
into nine regions. In each region, hospitals are selected at random within each hospital size group (small,
medium, large). In each hospital, heart surgery patients are sampled according to known percentages by age
group (under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines which sampling
methods?

A. Systematic, simple random, and convenience

B. Convenience, systematic, and judgment
C. Cluster, stratified, and simple random
D. Judgment, systematic, and simple random


A. Selecting every fifth shopper arriving at a store will approximate a random sample of shoppers.
B. Selecting only shoppers who drive SUVs is a stratified sampling method.
C. A census is preferable to a sample for most business problems.
D. Stratified samples are usually cheaper than other methods.

99. Which is a categorical variable?

A. The brand of jeans you usually wear

B. The price you paid for your last pair of jeans
C. The distance to the store where you purchased your last pair of jeans
D. The number of pairs of jeans that you own

100. Which is a discrete variable?

A. The time it takes to put on a pair of jeans


101. A section of the population we have targeted for analysis is:

A. a statistic.
B. a frame.
C. a sample.
D. a coven.

102. Which is not a time series variable?

A. Closing checkbook balances of 30 students on December 31 of this year

C. Dollar/euro exchange rates at 12 noon GMT for the last 30 days
D. Movie attendance at a certain theater for each Saturday last year

103. A good Likert scale may not have:

A. unequal distances between scale points.

B. an odd number of scale points.
C. a verbal label on each scale point.
D. verbal anchors at its end points.

104. A Likert scale with an odd number of scale points between "Strongly Agree" and "Strongly Disagree":

A. cannot have equal scale distances.

B. cannot have a neutral middle point.
D. is often used in marketing surveys.

105. A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly Disagree":


B. is intended to prevent "neutral" choices.
D. is rarely used in surveys.


A. Analysts rarely consult business periodicals (e.g., Bloomberg Businessweek).

B. Web searches (e.g., Google) often yield unverifiable data.
C. Government data sources (e.g., www.bls.gov) are often costly.
D. Private statistical databases (e.g., CRSP) are usually free.


A. Analysts avoid business periodicals (e.g., Bloomberg Businessweek).

B. Web searches (e.g., Google) yield reliable and easily verified data.
C. Government data sources (e.g., www.bls.gov) usually are free.
D. Private statistical databases (e.g., CRSP) usually are free.


108. Which survey method would you recommend to survey opinions of airline passengers about the cleanliness of
the restrooms in the Detroit airport? Why not the others?

109. What kind of sampling method would you suggest in order to tabulate the number of formulas on a typical page
of the Doane-Seward textbook? Defend your choice.

110. How would you design a study to see whether drivers using hands-free cell phones are distracted enough to
slow their reactions to emergency situations? How would you collect data?

111. Explain the concept of a focus group. In what ways does a focus group resemble a survey? Why is a moderator
desirable? What else is required to make a successful focus group?

Chapter 02 Data Collection Answer Key


1. Categorical data have values that are described by words rather than numbers.

TRUE
Categories are nominal data but could also be ranked (e.g., sophomore, junior, senior).

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Explain the difference between numerical and categorical data.
Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales.
Topic: Variables and Data

2. Numerical data can be either discrete or continuous.

TRUE
Numerical data can be counts (e.g., cars owned) or continuous scales (e.g., height).

Blooms: Remember
Difficulty: 1 Easy

3. Categorical data are also referred to as nominal or qualitative data.

TRUE
Categories are nominal data (nonnumerical), sometimes called qualitative data.

Blooms: Remember
Difficulty: 1 Easy

4. The number of checks processed at a bank in a day is an example of categorical data.

FALSE
Integers are actually numerical data.

Blooms: Apply
Difficulty: 1 Easy

5. The number of planes per day that land at an airport is an example of discrete data.

TRUE
Integers are discrete numerical data.

Blooms: Apply
Difficulty: 1 Easy

6. The weight of a bag of dog food is an example of discrete data.

FALSE
Weight is measured on a continuous scale.

Blooms: Apply
Difficulty: 1 Easy

7. In last year's annual report, Thompson Distributors indicated that it had 12 regional warehouses. This is an
example of ordinal level data.

FALSE
"Number of" is a count, which is ratio data because a zero exists (better than ordinal).

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data.
Topic: Level of Measurement

8. Nominal data refer to data that can be ordered in a natural way.

FALSE
Nominal (categorical) data would be called ordinal only if categories can be ranked.

Blooms: Remember
Difficulty: 1 Easy

9. This year, Oxnard University produced two football All-Americans. This is an example of continuous data.

FALSE
The "number of" anything is discrete.

Blooms: Apply
Difficulty: 1 Easy

10. The type of statistical test that we can perform is independent of the level of measurement of the variable of
interest.

FALSE
Some statistical operations are restricted unless you have ratio or interval data.

Blooms: Understand
Difficulty: 1 Easy

11. Your weight recorded at your annual physical would not be ratio data, because you cannot have zero
weight.

FALSE
Zero is only a reference point, not necessarily an observable data value.

Blooms: Apply

12. The level of measurement for categorical data is nominal.

TRUE
Categorical and nominal are equivalent terms.

Blooms: Remember
Difficulty: 1 Easy

13. Temperature measured in degrees Fahrenheit is an example of interval data.

TRUE
For temperature, scale distances are meaningful (20 to 25 is the same as 50 to 55 degrees), and 0 degrees
Fahrenheit does not mean the absence of heat, so it is not a ratio measurement.

Blooms: Apply

14. The closing price of a stock is an example of ratio data.

TRUE
True zero exists as a reference, whether or not it is observed.

Blooms: Apply

15. The Statistical Abstract of the United States is a huge annual compendium of data for the United States, and
it is available online free of charge.

TRUE
A useful reference for business (e.g., for marketing, economics, or finance).

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-08 Find everyday print or electronic data sources.
Topic: Data Sources

16. Ordinal data can be treated as if it were nominal data but not vice versa.

TRUE
You can always go back to a lower level of measurement (but not vice versa).

Blooms: Understand
Difficulty: 1 Easy

17. Responses on a seven-point Likert scale are usually treated as ratio data.

FALSE
No true zero point exists on a Likert scale.

Blooms: Understand
Difficulty: 1 Easy

18. Likert scales are especially important in opinion polls and marketing surveys.

TRUE
Likert scales are used in all kinds of surveys.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Recognize a Likert scale and know how to use it.

19. Ordinal data are data that can be ranked based on some natural characteristic of the items.

TRUE
For example, the eras Jurassic, Paleozoic, and Mesozoic can be ranked in time.

Blooms: Remember
Difficulty: 1 Easy

20. Ratio data are distinguished from interval data by the presence of a zero reference point.

TRUE
The true zero is a reference that need not be observable.

Blooms: Remember

21. It is better to attempt a census of a large population instead of relying on a sample.

FALSE
A census may founder on cost and time, while samples can be quick and accurate.

Blooms: Understand
Learning Objective: 02-06 Use the correct terminology for samples and populations.
Topic: Sampling Concepts

22. Judgment sampling and convenience sampling are nonrandom sampling techniques.

TRUE
To be random, every item must have the same chance of being chosen.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-07 Explain the common sampling methods and how to implement them.
Topic: Sampling Methods

23. A problem with judgment sampling is that the sample may not reflect the population.

TRUE
While better than mere convenience, judgment may still have flaws.

Blooms: Remember
Difficulty: 1 Easy

24. When the population is large, a sample estimate is usually preferable to a census.

TRUE
A census may founder on cost and time, while samples can be quick and accurate.

Blooms: Understand
Difficulty: 1 Easy

25. Sampling error is avoidable by choosing the sample scientifically.

FALSE
Sampling error is unavoidable, though it can be reduced by careful sampling.

Blooms: Remember

26. A sampling frame is used to identify the target population in a statistical study.

TRUE
Only some portion of the population may be targeted (e.g., independent voters).

Blooms: Remember

27. By taking a systematic sample, in which we select every 50th shopper arriving at a specific store, we are
approximating a random sample of shoppers.

TRUE
There is no bias if this method is implemented correctly.

Blooms: Apply

28. A worker collecting data from every other shopper who leaves a store is taking a simple random sample of
customer opinion.

FALSE
Not unless the target population is customers who shopped today (cf., all customers).

Blooms: Apply

29. Creating a list of people by taking the third name listed on every 10th page of the phone book is an example
of convenience sampling.

FALSE
This resembles two-stage cluster sampling combined with systematic sampling.

Blooms: Apply

30. Internet surveys posted on popular websites have no bias since anyone can reply.

FALSE
Self-selection bias exists (respondents may be atypical).

AACSB: Technology
Blooms: Understand
Topic: Surveys

31. Analysis of month-by-month changes in stock market prices during the most recent recession would require
the use of time series data.

TRUE
Data collected and recorded over time would be a time series.

Blooms: Apply
Learning Objective: 02-03 Explain the difference between time series and cross-sectional data.

32. A cluster sample is a type of stratified sample that is based on geographical location.

TRUE
For example, sampling voters randomly within random zip codes.

Blooms: Remember
Difficulty: 1 Easy

33. An advantage of a systematic sample is that no list of enumerated data items is required.

TRUE
Systematic sampling works with a list (like random sampling) but also without one.

Blooms: Remember
Difficulty: 1 Easy

34. Telephone surveys often have a low response rate and fail to reach the desired population.

TRUE
Phone surveys are cheaper, but it is hard to avoid these problems.

Blooms: Remember
Difficulty: 1 Easy
Topic: Surveys

35. Mail surveys are attractive because of their high response rates.

FALSE
Mail surveys have low response rates and invite self-selection bias.

Blooms: Remember
Difficulty: 1 Easy
Topic: Surveys

36. A problem with convenience sampling is that the target population is not well defined.

TRUE
Convenience sampling is quick but not random, and the target population is unclear.

Blooms: Remember

37. If you randomly sample 50 students about their favorite places to eat, the data collected would be referred to
as cross-sectional data.

TRUE
Data for individuals would be a cross section (not a time series).

Blooms: Apply

38. The number of FedEx shipping centers in each of 50 cities would be ordinal level data.

FALSE
The "number of" anything is ratio data because a true zero reference point exists.

Blooms: Apply

39. Internet surveys posted on popular websites such as MSN.com suffer from nonresponse bias.

TRUE
Nonresponse or self-selection bias is rampant in such surveys.

Blooms: Apply
Topic: Surveys

40. Different variables are usually shown as columns of a multivariate data set.

TRUE
It is customary to use a column for each variable, while each row is an observation.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Use basic terminology for describing data and samples.

41. Each row in a multivariate data matrix is an observation (e.g., an individual response).

TRUE
It is customary to use a column for each variable, while each row is an observation.

Blooms: Remember
Difficulty: 1 Easy

42. A bivariate data set has only two observations on a variable.

FALSE
Bivariate refers to the number of variables, not the number of observations.

Blooms: Remember
Difficulty: 1 Easy

43. Running times for 3,000 runners in a 5k race would be a multivariate data set.

FALSE
Regardless of the number of observations, we have only one variable (running time).

Blooms: Remember
Difficulty: 1 Easy

44. Running times for 500 runners in a 5k race would be a univariate data set.

TRUE
Regardless of the number of observations, we have only one variable (running time).

Blooms: Remember
Difficulty: 1 Easy

45. A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set.

TRUE
We would have a data matrix with 50 rows and 3 columns.

Blooms: Remember
Difficulty: 1 Easy

46. The daily closing price of Apple stock over the past month would be a time series.

TRUE
Data collected over time is a time series.

Blooms: Apply

47. The number of words on 50 randomly chosen textbook pages would be cross-sectional data.

TRUE
Data were not collected over time, so we have cross-sectional data.

Blooms: Apply

48. A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly Disagree" is
intended to prevent "neutral" choices.

TRUE
An even number of scale points (e.g., 4) forces the respondent to "lean" toward one end of the scale or the
other.

Blooms: Apply

49. Private statistical databases (e.g., CRSP) are usually free.

FALSE
Private research databases generally require a subscription (often expensive).

Blooms: Remember
Difficulty: 1 Easy
Topic: Data Sources


50. An investment firm rates bonds for AardCo Inc. as "B+," while bonds of Deva Corp. are rated "AA." Which
level of measurement would be appropriate for such data?

A. Nominal
B. Ordinal
C. Interval
D. Ratio
Ranks are clear, but interval would require assumed equal scale distances (doubtful).

Blooms: Evaluate

51. Which variable is least likely to be regarded as ratio data?

A. Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes)
B. Weight of a randomly chosen student (pounds)
C. Number of fatalities in a randomly chosen traffic disaster (persons)
D. Student's evaluation of a professor's teaching (Likert scale)
Likert scales have no true zero.

Blooms: Apply

52. Which of the following is numerical data?

A. Your gender

B. The brand of cell phone you own
C. Whether you have an American Express card
D. The fuel economy (MPG) of your car
Fuel economy is numerical.

Blooms: Apply
Difficulty: 1 Easy

53. Measurements from a sample are called:

A. statistics.
B. inferences.
C. parameters.
D. variables.
A measurement calculated from a sample is a statistic.

Blooms: Remember
Difficulty: 1 Easy

54. Quantitative variables use which two levels of measurement?

A. Ordinal and ratio

B. Interval and ordinal
C. Nominal and ordinal
D. Interval and ratio
Numerical (quantitative) data can be interval or ratio.

Blooms: Remember

55. Temperature in degrees Fahrenheit is an example of a(n) __________ variable.

A. nominal
B. ordinal
C. interval
D. ratio
No true zero exists in temperature measurements except on the Kelvin scale.

Blooms: Apply
Difficulty: 1 Easy

56. Using a sample to make generalizations about an aspect of a population is called:

A. data mining.

B. descriptive statistics.
C. random sampling.
D. statistical inference.
Generalizing from a sample to a population is an inference.

Blooms: Remember
Difficulty: 1 Easy

57. Your telephone area code is an example of a(n) ____________ variable.

A. nominal
B. ordinal
C. interval
D. ratio
Area codes are not even ranked, so just nominal.

Blooms: Understand

58. Which is least likely to be regarded as a ratio variable?

A. A critic's rating of a restaurant on a 1 to 4 scale

B. Automobile exhaust emission of nitrogen dioxide (milligrams per mile)
C. Number of customer complaints per day at a cable TV company office
D. Cost of an eBay purchase
Ratings on a Likert scale have no meaningful zero.

Blooms: Apply

59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.

A. nominal
B. ordinal
C. interval
D. ratio
True zero exists.

Blooms: Apply

60. Your rating of the food served at a local restaurant using a three-point scale of 0 = gross, 1 = decent, 2 =
yummy is ___________ data.

A. nominal
B. ordinal
C. interval
D. ratio
Only rankings implied (not equal scale distances).

Blooms: Apply

61. The number of passengers "bumped" on a particular airline flight is ____________ data.

A. nominal
B. ordinal
C. interval
D. ratio
True zero exists (no passengers might be bumped).

Blooms: Apply
Difficulty: 1 Easy

62. Which should not be regarded as a continuous random variable?

A. Tonnage carried by a randomly chosen oil tanker at sea

B. Wind velocity at 7 o'clock this morning
C. Number of personal fouls by the Miami Heat in a game
D. Length of time to play a Wimbledon tennis match
Counting things yields integer (discrete) data.

Blooms: Apply

63. Which of the following is not true?

A. Categorical data have values that are described by words rather than numbers.
B. Categorical data are also referred to as nominal or qualitative data.
C. The number of checks processed at a bank in a day is categorical data.
D. Numerical data can be either discrete or continuous.
The "number of" anything is a discrete numerical variable.

Blooms: Apply


A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is ordinal data.
B. The duration (minutes) of a flight from Boston to Minneapolis is ratio data.
C. The number of Nobel Prize-winning faculty at Oxnard University is continuous data.
D. The number of regional warehouses owned by Jankord Industries is ordinal data.
True zero exists (not observable, but as a reference point), so ratios have meaning.

Blooms: Apply


A. Judgment sampling is preferred to systematic sampling.

B. Sampling without replacement introduces bias in our estimates of parameters.
C. Cluster sampling is useful when strata characteristics are unknown.
D. Focus groups usually work best without a moderator.
Review the characteristics of each sampling method.

Blooms: Remember

66. A Likert scale:

A. yields interval data if scale distances are equal.

B. must have an odd number of scale points.
D. is rarely used in marketing surveys.
Marketers use Likert scales and try to make scales with meaningful intervals.

Blooms: Remember

67. Which is most nearly correct regarding sampling error?

A. It can be eliminated by increasing the sample size.

B. It cannot be eliminated by any statistical sampling method.
C. It can be eliminated by using Excel's =RANDBETWEEN() function.
D. It can be eliminated by utilizing systematic random sampling.
Sampling involves error, though it can be minimized by proper methodology.

Blooms: Understand


A. Random dialing phone surveys have low response and are poorly targeted.
B. Selection bias means that many respondents dislike the interviewer.
C. Simple random sampling requires a list of the population.
D. Web surveys are economical but suffer from nonresponse bias.
Selection bias occurs when respondents are atypical.

Blooms: Understand
Topic: Surveys

69. Judgment sampling is sometimes preferred over random sampling, for example, when:

A. the desired sample size is much larger than the population.
B. the sampling budget is large and the population is conveniently located.
C. time is short and the sampling budget is limited.
D. the population is readily accessible and sampling is nondestructive.
Judgment sampling can save time and may be better than mere convenience.

Blooms: Understand

70. An advantage of convenience samples is that:

A. the required sample size is easier to calculate.

B. sampling error can be reduced.
C. computation of statistics is easier.
D. they are often quicker and cheaper.
Convenience samples are quick, with a possible trade-off of accuracy.

Blooms: Remember
Difficulty: 1 Easy

71. Before deciding whether to assess heavy fines against noisy airlines, which sampling method would the
Federal Aviation Administration probably use to measure the peak noise from departing jets as measured by
a ground-level observer at a point one mile from the end of the departure runway?

A. Radio survey of pilots.

B. Simple random sample.
C. Judgment sample.
D. Stratified sample.
From the cockpit, pilots can't assess external noise levels, so a radio survey of pilots is not useful.
Measurements must be taken from the ground. No list is available for the unpredictable mix of departing
flights, so we can't use a simple random sample. A judgment sample would not provide an objective basis
for assessing fines. A reasonable option would be for ground observers to record the aircraft size, type, and
carrier (airline) for each departing flight for a week and use this information to construct a stratified sample.

Blooms: Evaluate
Difficulty: 3 Hard

72. Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by picking every
student who was wearing red that day. Which kind of sample is this?


B. Judgment sample
Quick but may not be representative of all students.

Blooms: Apply

73. Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every
15th folder. Which sampling method is this?


B. Systematic sample
C. Stratified sample
D. Cluster sample
Classic systematic sample from an accessible but unlisted population.

Blooms: Apply

74. Which of the following is not a likely reason for sampling?

A. The destructive nature of certain tests

B. The physical impossibility of checking all the items in the population
C. Prohibitive cost of studying the entire population
D. The expense of obtaining random numbers
Random numbers are cheap (e.g., Excel).

Blooms: Understand

75. Comparing a census of a large population to a sample drawn from it, we expect that the:

A. sample is usually a more practical method of obtaining the desired information.
B. accuracy of the observations in the census is surely higher than in the sample.
C. sample must be a large fraction of the population to be accurate.
Census is often impractical, while samples can be extremely accurate.

Blooms: Understand

76. A stratified sample is sometimes recommended when:

A. the sample size is very large.

B. the population is small compared to the sample.
C. distinguishable strata can be identified in the populations.
D. the population is spread out geographically.
Identifiable strata such as gender, ethnicity, or region can be used.

Blooms: Remember

77. A random sample is one in which the:

A. probability that an item is selected for the sample is the same for all population items.
B. population items are selected haphazardly by experienced workers.
C. items to be selected from the population are specified based on expert judgment.
D. probability of selecting a population item depends on the item's data value.
Each item must have the same chance of being picked if the sample is random.

Blooms: Remember

78. An advantage of convenience samples over random samples is that:

A. they are easy to analyze.

B. it is easier to determine the sample size needed.
C. it is easier to calculate the sampling errors involved.
D. data collection cost is reduced.
Convenience samples are often used because they are quick (but maybe not accurate).

Blooms: Remember
Difficulty: 1 Easy

79. To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its customers by age,
gender, and location. Which is an advantage of this type of sampling, as opposed to other sampling
methods?

A. It is less intrusive on customers' privacy.

B. It does not require random numbers.
C. It gives faster results.
D. It can give more accurate results.
Stratified sampling can yield more complete and accurate information.

AACSB: Diversity
Blooms: Analyze

80. An accounting professor wishing to know how many MBA students would take a summer elective in
international accounting did a survey of the class she was teaching. Which kind of sample is this?


B. Cluster sample
She may bias the estimate because only accounting students were surveyed.

Blooms: Apply

81. A binary variable (also called a dichotomous variable or dummy variable) has:

A. only two possible values.

B. continuous scale values.
C. rounded data values.
D. ordinal or interval values.
Binary variables are used in every field of business to code qualitative (nominal) data.

Blooms: Remember
Difficulty: 1 Easy

82. A population has groups that have a small amount of variation within them, but large variation among or
between the groups themselves. The proper sampling technique is:

A. simple random.

B. stratified.
C. cluster.
D. judgment.
Identifiable strata call for stratified sampling if you can afford the extra time and cost.

Blooms: Apply
Difficulty: 3 Hard

83. A manager chose two people from his team of eight to give an oral presentation because she felt they were
representative of the whole team's views. What sampling technique did she use in choosing these two
people?

A. Convenience
B. Simple random
C. Judgment
D. Cluster
Expert judgment may be better than just pointing a finger (we hope).

Blooms: Apply

84. Sampling bias can best be reduced by:

A. using appropriate data coding.

B. having a computer tabulate the results.
C. utilizing random sampling.
D. taking a judgment sample.
Sampling error can't be eliminated, but sampling bias can be avoided.

Blooms: Understand

85. A sampling technique used when groups are defined by their geographical location is:

A. cluster sampling.

B. convenience sampling.
C. judgment sampling.
D. random sampling.
Strata based on location can be targeted through cluster sampling.

Blooms: Remember

86. If we choose 500 random numbers using Excel's function =RANDBETWEEN(1,99), we would most likely
find that:

A. numbers near the mean (50) would tend to occur more frequently.
B. numbers near 1 and 99 would tend to occur less frequently.
C. some numbers would occur more than once.
D. the numbers would have a clear pattern.
On average, we'd expect each number to occur around five times.

Blooms: Apply

87. A problem with nonrandom sampling is that:

A. larger samples need to be taken to reduce the sampling error inherent in this approach.
B. not every item in the population has the same chance of being selected, as it should.
C. it is usually more expensive than random sampling.
D. it generally provides lower response rates than random sampling.
Only random sampling gives every item the same chance to be picked.

Blooms: Understand

88. From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial flights in
each region for compliance with legal fuel and weight requirements. This is an example of:

A. simple random sampling.

B. stratified random sampling.
C. cluster sampling.
D. judgment sampling.
Two-stage cluster sampling is being used (a special form of stratification).

Blooms: Apply

89. Which of the following is a correct statement?

A. Choosing the third person listed on every fifth page of the phone book is stratified sampling.
B. An advantage of a systematic sample is that no list of enumerated data items is required.
C. Convenience sampling is used to study shoppers in convenience stores.
D. Judgment sampling is an example of true random sampling.
Review the sampling methods and their characteristics.

Blooms: Analyze


A. Sampling error is the difference between the true parameter and the sample estimate.
B. Sampling error is a result of unavoidable random variation in a sample.
C. A sampling frame is chosen from the target population in a statistical study.
D. The target population must first be defined by a full list or data file of all individuals.
Review the terminology of sampling.

Blooms: Understand

91. When we are choosing a random sample and we do not place chosen units back into the population, we are:

A. sampling with replacement.

B. sampling without replacement.
C. using a systematic sample.
D. using a voluntary sample.
Sampling without replacement avoids redundancy, yet nonreplacement is biased.

Blooms: Remember
Difficulty: 1 Easy

92. Which method is likely to be used by a journalism student who is casually surveying opinions of students
about the university's cafeteria food for an article that she is writing?


B. Systematic random sample
C. Cluster sample
Quick and easy may trump true random sampling for a busy journalist.

Blooms: Apply


A. Mail surveys are cheap but have low response rates.
B. Coverage error is when respondents give untruthful answers.
C. Focus groups are nonrandom but can probe issues more deeply.
D. Surveys posted on popular websites suffer from selection bias.
Coverage error is when you miss some segment of the target population.

Blooms: Understand
Topic: Surveys

94. Which is a time series variable?

A. VISA balances of 30 students on December 31 of this year

C. Dollar exchange rates yesterday against 10 other world currencies
D. Titles of the top 10 movies in total revenue last week
If x1, x2,…, xn do not refer to n time periods, it isn't a time series.

Blooms: Apply

95. An observation in a data set would refer to:

A. only a variable whose value is recorded by visual inspection.

B. a data item whose value is numerical (as opposed to categorical).
C. a single row that contains one or more observed variables.
D. the values of all the variables in the entire data set.
We usually put observations in rows on a spreadsheet, while each column is a variable.

Blooms: Remember
Difficulty: 1 Easy

96. A multivariate data set contains:

A. more than two observations.

B. more than two categorical variables.
C. more than two variables.
D. more than two levels of measurement.
When you have more than two variables, it is multivariate data.

Blooms: Remember
Difficulty: 1 Easy

97. The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra hospital stay that
occurs when heart surgery patients experience postoperative atrial fibrillation. They divide the United States
into nine regions. In each region, hospitals are selected at random within each hospital size group (small,
medium, large). In each hospital, heart surgery patients are sampled according to known percentages by age
group (under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines which
sampling methods?

A. Systematic, simple random, and convenience

B. Convenience, systematic, and judgment
C. Cluster, stratified, and simple random
D. Judgment, systematic, and simple random
Identifiable strata were sampled, but also random within strata and regional clusters.

Blooms: Evaluate
Difficulty: 3 Hard


A. Selecting every fifth shopper arriving at a store will approximate a random sample of shoppers.
B. Selecting only shoppers who drive SUVs is a stratified sampling method.
C. A census is preferable to a sample for most business problems.
D. Stratified samples are usually cheaper than other methods.
Done carefully, systematic sampling is close to random when there is no list.

Blooms: Evaluate

99. Which is a categorical variable?

A. The brand of jeans you usually wear

Categories have only names (e.g., Calvin Klein).

Blooms: Remember
Difficulty: 1 Easy

100. Which is a discrete variable?

A. The time it takes to put on a pair of jeans

The "number of" anything is discrete numerical data.

Blooms: Remember
Difficulty: 1 Easy

101. A section of the population we have targeted for analysis is:

A. a statistic.
B. a frame.
C. a sample.
D. a coven.
We must define the segment we want to look at (e.g., independent voters).

Blooms: Remember
Difficulty: 1 Easy

102. Which is not a time series variable?

A. Closing checkbook balances of 30 students on December 31 of this year

C. Dollar/euro exchange rates at 12 noon GMT for the last 30 days
D. Movie attendance at a certain theater for each Saturday last year
If x1, x2,…, xn do not refer to n time periods, it isn't a time series.

Blooms: Apply

103. A good Likert scale may not have:

A. unequal distances between scale points.

B. an odd number of scale points.
C. a verbal label on each scale point.
D. verbal anchors at its end points.
Surveys try to create scales with meaningful intervals.

Blooms: Remember

104. A Likert scale with an odd number of scale points between "Strongly Agree" and "Strongly Disagree":


B. cannot have a neutral middle point.
D. is often used in marketing surveys.
Likert scales should have arguably equal intervals. A middle neutral response is possible with an odd
number of scale points (e.g., 5 or 7).

Blooms: Apply

105. A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly Disagree":


B. is intended to prevent "neutral" choices.
D. is rarely used in surveys.
Likert scales should have arguably equal intervals. An even number of scale points (e.g., 4) forces the
respondent to "lean" toward one end of the scale or the other.

Blooms: Apply


A. Analysts rarely consult business periodicals (e.g., Bloomberg Businessweek).

B. Web searches (e.g., Google) often yield unverifiable data.
C. Government data sources (e.g., www.bls.gov) are often costly.
D. Private statistical databases (e.g., CRSP) are usually free.
Periodicals are often up-to-date and readily available data sources. Web data may be unreliable, and
searches may be directed toward obtaining payment for data. Private research databases generally require a
subscription, while government data sources generally are free.

Blooms: Remember
Difficulty: 1 Easy
Topic: Data Sources


A. Analysts avoid business periodicals (e.g., Bloomberg Businessweek).

B. Web searches (e.g., Google) yield reliable and easily verified data.
C. Government data sources (e.g., www.bls.gov) usually are free.
D. Private statistical databases (e.g., CRSP) usually are free.
Periodicals are often up-to-date and readily available data sources. Web data may be unreliable, and
searches may be directed toward obtaining payment for data. Private research databases generally require a
subscription, while government data sources generally are free.

Blooms: Remember
Difficulty: 1 Easy
Topic: Data Sources


108. Which survey method would you recommend to survey opinions of airline passengers about the cleanliness
of the restrooms in the Detroit airport? Why not the others?

Restroom users are usually in a hurry and do not wish to talk to anyone while entering or leaving the
facility, so direct observation or handout surveys would not work. A questionnaire could be e-mailed or
mailed to a sample of frequent flyers. No telephone surveys, because people would distrust the call. A web
survey would have nonresponse bias.
Feedback: This is a difficult sampling problem. Restroom users are usually in a hurry and do not wish to
talk to anyone while entering or leaving the facility. Thus, direct observation or handout surveys would not
work. Perhaps a questionnaire could be e-mailed or mailed to a sample of frequent flyers who departed or
arrived at this airport in a recent month, if a major airline were willing to cooperate. This assumes that
frequent flyers are a reasonable target population. You would probably not use a telephone survey, because
people would distrust the call. A web survey would have nonresponse bias (i.e., respondents would probably
be those with a gripe). Students may digress into sampling methods (random, systematic, cluster, stratified)
instead of survey types. Ingenious students may propose other novel methods of sampling opinions.

Blooms: Evaluate
Difficulty: 3 Hard
Topic: Surveys

109. What kind of sampling method would you suggest in order to tabulate the number of formulas on a typical
page of the Doane-Seward textbook? Defend your choice.

Pages are numbered, so a simple random sample would be easy, or a systematic sample (e.g., every 20th
page starting at page 17). Case could be made for cluster or stratified samples (e.g., by chapter or topic).
Feedback: Since the pages are numbered, a simple random sample would be quite easy. Have Excel print n
random integers between 001 and 773 (or whatever the length of the book is). You would want to exclude
the table of contents, appendixes, indexes, and so on). Another good choice would be a systematic sample
(e.g., every 20th page starting at page 17) or a variation such as every page divisible by 20. These methods
would be unbiased. Possible cases could be made for cluster or stratified samples (e.g., by chapter or topical
area), but these might offer little gain.

Blooms: Evaluate

110. How would you design a study to see whether drivers using hands-free cell phones are distracted enough to
slow their reactions to emergency situations? How would you collect data?

No observation of drivers (too dangerous). Tests using a simulator would permit data to be collected
automatically and would permit stratified sampling by driver characteristics (e.g., age group, gender, cell
phone type).
Feedback: Don't use direct observation of drivers (too dangerous). Tests using a simulator would permit data
to be collected automatically on reaction times to emergencies. This would permit stratified sampling by
driver characteristics (e.g., age group, gender, cell phone type). Many answers are possible. The emphasis
should be on how carefully the student has thought about the question. Beware of simplistic answers or
impossible data collection schemes.

Blooms: Evaluate
Difficulty: 3 Hard
Topic: Surveys

111. Explain the concept of a focus group. In what ways does a focus group resemble a survey? Why is a
moderator desirable? What else is required to make a successful focus group?

Data collected in a focus group are richer in qualitative details and may contain information that would be
missed in a survey. A trained moderator can help keep the group on track and manage interpersonal issues
that may arise.
Feedback: Data collected in a focus group are richer in qualitative details, and may contain information that
would be missed in a survey. Yet a focus group is like a survey in that it seeks to extract useful information
and patterns from individuals. Participants are not chosen completely at random, but rather are selected to
represent different backgrounds and diverse viewpoints of interest to the researchers. A well-trained
moderator can help keep the group on track and manage interpersonal issues that may arise.

Blooms: Evaluate

Chapter 03
Describing Data Visually


1. It is easier to read the data values on a 3D column chart than on a 2D column chart.

True False

2. The column chart should be avoided if you are plotting time series data.

True False

3. The line chart is appropriate for categorical (qualitative) data.

True False

4. The Pareto chart is used to display the "vital few" causes of problems.

True False

5. Excel's pyramid chart is generally preferred to a plain 2D column chart.

True False

6. Excel's pyramid charts make it easier to read the data values.

True False

7. Dot plots are similar to histograms with many bins (classes).

True False

8. Compared to a dot plot, we lose some detail when we present data in a frequency distribution.

True False

9. Stacked dot plots are useful in understanding the association between two paired quantitative variables (X, Y).

True False

10. Log scales are common because most people are familiar with them.

True False

11. Sturges' Rule should override judgment about the "right" number of histogram bins.

True False

12. Sturges' Rule is merely a suggestion, not an ironclad requirement.

True False

13. Excel's 3D pie charts are usually clearer than 2D pie charts.

True False

14. A common error with pie charts is using too few "slices."

True False

15. A pie chart can generally be used instead of a bar chart.

True False

16. A column chart can sometimes be used instead of a line chart for time series data.

True False

17. Pie charts are attractive to statisticians, but are rarely used in business or general media.

True False

18. Pie charts are useful in displaying frequencies that sum to a total.

True False

19. Dot plots may not reveal the shape of a distribution when the sample is small.

True False

20. Scatter plots are used to visualize association in samples of paired data (X, Y).

True False

21. The zero origin rule may be waived for column or line charts if the objective is merely to visualize relative
change over time.

True False

22. In a bimodal histogram, the two highest bars will have the same height.

True False

23. A frequency distribution is a tabulation of n data values into classes called bins.

True False

24. A dot plot would be useful in visualizing scores on an exam in a class of 30 students.

True False

25. A frequency distribution usually has equal bin widths.

True False

26. Line charts are not used for cross-sectional data.

True False

27. A scatter plot is useful in visualizing trends over time.

True False

28. A scatter plot requires two quantitative variables (i.e., not categorical data).

True False

29. The number of bins in this histogram (caffeine content in mg/oz for 65 soft drinks) is consistent with Sturges'
Rule.

True False

30. Because most data values are on the left, we would say that this dot plot (burglary rates per 100,000 persons in
350 U.S. cities) shows a distribution that is skewed to the left (negatively skewed).

True False

31. It is possible to construct a histogram or frequency polygon with open-ended classes.

True False

32. Except for the Y-axis scaling, a histogram will look the same if we use relative frequencies instead of raw
frequencies (with the same bin limits).

True False


33. The ______________ can be used to differentiate the "vital few" causes of quality problems from the "trivial
many" causes of quality problems.

A. histogram
B. scatter plot
C. Pareto chart
D. box plot

34. Which is not a characteristic of a dot plot?

A. Simplicity
B. Legibilit
y
C. Wide bins
D. Dot stacking

35. Which display is most likely to reveal association between X and Y?

A. Dot plot
B. Scatter plot
C. Histogram
D. Pareto chart

36. Which criterion is least likely to be used in choosing bins (classes) in a frequency distribution?

A. Following Sturges' Rule

B. Selecting "nice" class (bin) limits
C. Using aesthetic judgment
D. Always starting at zero


A. Line charts are not used for cross-sectional data.

B. Line charts are useful for visualizing categorical data.
C. Pyramid charts are generally preferred instead of column charts.
D. Pie charts can generally be used instead of bar charts.

38. Histograms generally do not reveal the:

A. exact data range.

B. modal classes (bins).
C. degree of skewness.
D. relative frequencies.

39. A column chart would be least suitable to display which data?

A. Annual compensation of 500 company CEOs

B. U.S. exports to its six largest trading partners
C. Exxon-Mobil's quarterly sales for the last four years
D. One-year CD interest rates paid by the eight largest U.S. banks

40. A line chart would not be suitable to display which data?

A. U.S. oil imports from OPEC nations for the last 20 years
B. Annual compensation of the top 50 CEOs
C. Exxon-Mobil's quarterly sales data for the last five years
D. Daily stock market closing prices of Microsoft for the past month

41. Which is not a tip for effective column charts?

A. Time usually goes on the horizontal axis.

B. Column height should be proportional to the quantity displayed.
C. Label data values at the top of each column unless graphing lots of data.
D. The nonzero origin rule may be waived for financial reports.

42. Which is not a tip for effective line charts?

A. Line charts are better than bar charts to display cross-sectional data.
B. Numerical labels are omitted on a line chart if there are many data values.
C. Omit data markers (e.g., squares, triangles) when there are many data values.
D. Thick lines make it harder to see exact data values.

43. Which is a reason for using a log scale for time series data?

A. It helps compare growth in time series of dissimilar magnitude.

B. General business audiences find it easier to interpret a log scale.
C. On a log scale, equal distances represent equal dollar amounts.
D. The axis labels are usually easier to read in log units.

44. Which is a not a characteristic of pie charts?

A. Pie charts can only convey a general idea of the data values.
B. Pie charts are ineffective when they have too many slices.
C. Exploded and 3-D pie charts will allow more "slices."
D. Pie chart data always represent parts of a whole (e.g., market share).

45. Excel's pyramid charts:

A. are generally preferred to pie charts.

B. should be avoided despite their visual appeal.
C. are generally preferred to line charts.
D. show trends more clearly than column charts.

46. Which is not a reason why pie charts are popular in business?

A. They can convey a general idea of the data to a nontechnical audience.

B. They can display major changes in parts of a whole (e.g., market share).
C. They are more precise than line charts, despite their low visual impact.
D. They can be labeled with data values to facilitate interpretation.

47. Which data would be suitable for a pie chart?

A. Whirlpool Corporation's sales revenue for the last five years

B. Oxnard University student category (undergraduate, masters, doctoral)
C. Average SAT scores for entering freshmen at 10 major U.S. universities
D. U.S. toy imports from China over the past decade


A. Percent vote in the last election by party (Democrat, Republican, Other)

B. Retail prices of six major brands of color laser printers
C. Labor cost per vehicle for 10 major world automakers
D. Prices paid by 10 students for their accounting textbooks


A. Average starting salary of MBA graduates from six ivy-league universities

B. APR interest rates charged by the top five U.S. credit cards
C. Last semester's average GPA for students in seven majors in a business school
D. The number of U.S. primary care clinics by type (urban, suburban, rural)

50. Scatter plots are:

A. useful in visualizing trends over time.

B. useful in identifying causal relationships.
C. often fitted with a linear equation in Excel.
D. applicable mainly to discrete data.

51. Which is not a characteristic of an effective summary table?

A. The main point should be clear within 10 seconds.

B. Data to be compared should be displayed in rows, not columns.
C. Data should be rounded to three or four significant digits.
D. Use space instead of lines to separate columns.

52. Effective summary tables generally:

A. have very detailed column headings and footnotes.

B. round their data to three or four significant digits.
C. use plenty of heavy vertical lines to separate the columns.
D. have the raw data listed in a footnote for clarity.

53. Pivot tables:

A. are similar in purpose to simple 2D pie charts.

B. show how the data "pivot" around a point.
C. show cross-tabulations of data.
D. are not really tables at all.

54. Which of the following is least useful in visualizing categorical data?

A. Bar chart
B. Pie chart
C. Line chart
D. Pareto chart

55. Which is considered a novelty chart in Excel?

A. Pie chart
B. Column chart
C. Pyramid chart
D. Line chart

56. We would use a pivot table to:

A. cross-tabulate frequencies of occurrence of two variables.

B. rotate the data around a central point.
C. establish cause-and-effect between X and Y.
D. display the data in a 3D scatter plot.

57. Which is not considered a deceptive graphical technique?

A. Nonzero origin
B. Elastic graph proportions
C. Dramatic title
D. Axis demarcations


A. Undefined units
B. 2D graphs
C. Authority figures
D. Distracting pictures

59. Which is the most serious deceptive graphical technique?

A. Vague source
B. Using bold colors
C. Nonzero origin
D. Unlabeled data points

60. Which is not a poor graphing technique?

A. Gratuitous pictures
B. Labeled axis scales
C. 3D bar charts
D. Rotated axis

61. Which of these deficiencies would be considered a major graphical deception?

A. Vague or unclear source

B. Using more than one color or font
C. Bar widths proportional to bar height
D. Using a dramatic graph title

62. Which is not a characteristic of a log scale for time series data?

A. Log scales are useful when data change by an order of magnitude.

B. The distance from 5 to 50 is the same as the distance from 50 to 500.
C. On a log scale, equal distances represent equal ratios.
D. Log scales are generally familiar to the average reader.

63. Which is not a characteristic of using a log scale to display time series data?

A. A log scale helps if we are comparing changes in two time series of dissimilar magnitude.
C. If you display data on a log scale, equal distances represent equal ratios.

64. This histogram shows Chris's golf scores in his last 77 rounds at Devil's Ridge. Which is not a correct
statement?

A. The number of bins is consistent with Sturges' Rule.

B. The histogram has a noticeable bimodal shape.
C. The modal class is 78 < 80.
D. About 15 percent of his scores are in the interval 74 < 76.

65. Which is not revealed on a scatter plot?

A. Pairs of observed (xi, yi ) data values

B. Nonlinear relationships between X and Y
C. Missing data values due to nonresponses
D. Unusual data values (outliers)

66. The distribution pictured below is:

A. bimodal and skewed right.

B. bimodal and skewed left.
C. skewed right.
D. skewed left.



C. skewed right.
D. skewed left.

68. The graph below illustrates which deceptive technique?

A. Poor Y axis scale

B. Area trick
C. Unclear grid lines
D. Dramatic title

69. Which is a characteristic of a histogram's bars?

A. The bar widths reveal the cumulative frequencies of data values.

B. The bar widths indicate class intervals and their areas indicate frequencies.
C. The bar widths show class intervals and their heights indicate frequencies.
D. The bar widths are an exact multiple of the sample size.

70. Below is a frequency distribution of earnings of 50 contractors in a country.

Regarding this distribution, which of the following is correct?

A. The frequency distribution contains too many class intervals.

B. The class interval limits are ambiguous.
C. Too few classes were chosen.
D. The class intervals are too wide.

71. Bob found an error in the following frequency distribution. What is it?

A. The class limits are overlapping too much.

B. The classes are not collectively exhaustive.
C. There are too many classes by Sturges' Rule.
D. The first class must start at 0.

72. The point halfway between the bin limits in a frequency distribution is known as the:

A. bin midpoint.
B. bin limit.
C. bin frequency.
D. bin width.

73. When using a dot plot with a small sample, which is least apparent?

A. Dispersion of data values within the array

B. The overall shape of the distribution
C. Central tendency of data in the data set
D. Location of data values within the array

74. If you have 256 data points, how many classes (bins) would Sturges' Rule suggest?

A. 6
B. 7
C. 8
D. 9


A. 5
B. 6
C. 7
D. 8

76. Which statement is not true concerning Sturges' Rule?

A. It proposes adding one class (bin) to the histogram for each extra observation.
B. If you double the sample size, you should add one class.
C. Its purpose is to tell how many classes (bins) to use in a frequency distribution.
D. It is only a guideline and may be overruled by other considerations.

77. To classify prices from 62 recent home sales, Sturges' Rule would recommend:

A. 7 classes.
B. 8 classes.
C. 9 classes.
D. 10 classes.

78. A histogram can be defined as:

A. a chart whose bar widths show the cumulative frequencies of data values.
B. a chart whose bar widths indicate class intervals and whose areas indicate frequencies.
C. a chart whose bar widths show class intervals and whose heights indicate frequencies.
D. a chart whose bar heights represent the value of each data point.

79. An open-ended bin (e.g., "50 and over") might be seen in a frequency distribution when:

A. some data values are not integers.

B. data values are nonnumerical.
C. extremely large data values exist.
D. some data are missing.

80. The width of a class in a frequency distribution is known as the:

A. midpoint.
B. class limit.
C. bin frequency.
D. class interval.

81. A population is of size 5,500 observations. When the data are represented in a relative frequency distribution,
the relative frequency of a given interval is 0.15. The frequency in this interval is equal to:

A. 4,675.
B. 800.
C. 675.
D. 825.

82. A population has 75 observations. One class interval has a frequency of 15 observations. The relative frequency
in this category is:

A. 0.20.
B. 0.10.
C. 0.15.
D. 0.75.

83. Below is a sorted stem-and-leaf diagram for the measured speeds (miles per hour) of 49 randomly chosen
vehicles on highway I-80 in Nebraska. How many vehicles were traveling exactly the speed limit (70 mph)?

A. 0
B. 1
C. 19
D. Impossible to tell

vehicles on highway I-80 in Nebraska. What is the highest observed speed?

A. 92
B. 90
C. 87

vehicles on highway I-80 in Nebraska. What is the mode?

A. 62
B. 79
C. 65

vehicles on highway I-80 in Nebraska. What is the fourth slowest speed in the sorted data array?

A. 61
B. 60
C. 55

vehicles on highway I-80 in Nebraska. The modal class is:

A. 60 but less than 70.

B. 70 but less than 80.
C. 80 but less than 90.
D. impossible to determine.

88. A statistician prepared a bar chart showing, in descending order, the frequency of six underlying causes of
general aviation accidents (pilot error, mechanical problems, disorientation, miscommunication, controller
error, other). What would we call this type of chart?

A. Pivot table
B. Pareto chart
C. Log scale chart
D. Frequency polygon


89. Briefly list strengths and weaknesses of this display. Cite specific principles of good graphs, as well as offering
your own general interpretation.





94. A study found the following parts per billion of nitrosamines in a sample of domestic beers. (a) Construct a
frequency distribution of four classes with equal class sizes. (b) Construct another frequency distribution of four
classes using unequal class intervals or an open-ended interval for the highest class. (c) Which frequency
distribution is preferable? Why?

95. Students were given a take-home statistics assignment and were asked to write down how long it took them (in
minutes). Their answers are shown below. (a) Make a dot plot. (b) Use your judgment to construct a frequency
distribution using whatever classes (bins) you wish. (c) Make a histogram. (d) Describe the distribution. (e) Did
your bin choices agree with Sturges' Rule? If not, why not?

96. Students were asked to record how many hours they worked at an outside job last week. Their answers are
shown below. (a) Make a dot plot. (b) Use your judgment to construct a frequency distribution using whatever
classes (bins) you wish. (c) Make a histogram. (d) Describe the distribution. (e) Did your bin choices agree with
Sturges' Rule? If not, why not?

97. Ten part-time servers at a high-end restaurant were asked how many hours they worked last week and how
much they earned. The results are shown below. (a) Make a scatter plot. (b) Describe it. (c) What is your best
guess of the average hourly pay?

98. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box truck.
Describe Craig's gasoline mileage based on this histogram of 195 tanks of gas.

99. Here are advertised prices of 23 used Chevy Impalas. Describe the distribution's shape. Is the number of
histogram classes correct?









108. Briefly comment on strengths and weaknesses of this display. Cite specific principles of good graphs, as well as
offering your own general interpretation.

Chapter 03 Describing Data Visually Answer Key


1. It is easier to read the data values on a 3D column chart than on a 2D column chart.

FALSE
Height is harder to judge on a 3D chart.

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-06 Make an effective column chart or bar chart.
Topic: Column and Bar Charts

2. The column chart should be avoided if you are plotting time series data.

FALSE
Line charts are more common, but column charts also work for a time series.

Blooms: Understand

3. The line chart is appropriate for categorical (qualitative) data.

FALSE
Only numerical data can be plotted on a line chart.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Make an effective line chart.
Topic: Line Charts

4. The Pareto chart is used to display the "vital few" causes of problems.

TRUE
Causes are displayed in a column or bar chart sorted in order of frequency.

Blooms: Remember
Difficulty: 1 Easy

5. Excel's pyramid chart is generally preferred to a plain 2D column chart.

FALSE
Avoid novelty charts when a plain 2D bar chart will do.

Blooms: Remember
Difficulty: 1 Easy
Topic: Deceptive Graphs

6. Excel's pyramid charts make it easier to read the data values.

FALSE
Avoid novelty charts when a plain 2D column chart will do.

Blooms: Remember
Difficulty: 1 Easy

7. Dot plots are similar to histograms with many bins (classes).

TRUE
Height of the dot stack is analogous to bar height.

Blooms: Understand
Learning Objective: 03-01 Make a stem-and-leaf or dot plot.
Topic: Stem-and-Leaf Displays and Dot Plots

8. Compared to a dot plot, we lose some detail when we present data in a frequency distribution.

TRUE
Individual data values are easier to see on a dot plot.

Blooms: Understand
Learning Objective: 03-02 Create a frequency distribution for a data set.
Topic: Frequency Distributions and Histograms

9. Stacked dot plots are useful in understanding the association between two paired quantitative variables (X,
Y).

FALSE
You would prefer a scatter plot for X-Y data.

Blooms: Understand
Difficulty: 3 Hard

10. Log scales are common because most people are familiar with them.

FALSE
Log scales seem to be harder for the average businessperson to interpret.

Blooms: Remember
Topic: Line Charts

11. Sturges' Rule should override judgment about the "right" number of histogram bins.

FALSE
Sturges' Rule is only a starting point or guideline.

Blooms: Remember
Learning Objective: 03-03 Make a histogram with appropriate bins.

12. Sturges' Rule is merely a suggestion, not an ironclad requirement.

TRUE
Sturges' Rule is only a starting point or guideline.

Blooms: Understand
Difficulty: 1 Easy

13. Excel's 3D pie charts are usually clearer than 2D pie charts.

FALSE
Many people like 3D better, but it is harder to judge slice size.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-07 Make an effective pie chart.
Topic: Pie Charts

14. A common error with pie charts is using too few "slices."

FALSE
The opposite is true (too many slices are often seen).

Blooms: Remember
Topic: Pie Charts

15. A pie chart can generally be used instead of a bar chart.

FALSE
No, a pie chart is specialized (only for parts of a whole).

Blooms: Understand
Topic: Pie Charts

16. A column chart can sometimes be used instead of a line chart for time series data.

TRUE
Line charts and column charts may be used to display time series data.

Blooms: Understand

17. Pie charts are attractive to statisticians, but are rarely used in business or general media.

FALSE
Pie charts make it hard to judge data values precisely, but often are colorful.

Blooms: Remember
Difficulty: 1 Easy
Topic: Pie Charts

18. Pie charts are useful in displaying frequencies that sum to a total.

TRUE
That is exactly what pie charts are for (e.g., industry market shares).

Blooms: Understand
Difficulty: 1 Easy
Topic: Pie Charts

19. Dot plots may not reveal the shape of a distribution when the sample is small.

TRUE
You need a fairly large sample size to assess shape on a dot plot.

Blooms: Apply
Difficulty: 1 Easy

20. Scatter plots are used to visualize association in samples of paired data (X, Y).

TRUE
That is exactly what a scatter plot is for.

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-08 Make and interpret a scatter plot.
Topic: Scatter Plots

21. The zero origin rule may be waived for column or line charts if the objective is merely to visualize relative
change over time.

FALSE
Nonzero origin is always potentially deceptive if we want to know relative size.

Blooms: Apply
Learning Objective: 03-10 Recognize deceptive graphing techniques.

22. In a bimodal histogram, the two highest bars will have the same height.

FALSE
Not necessarily, though they might be the same.

Blooms: Understand
Learning Objective: 03-04 Identify skewness, modal classes, and outliers in a histogram.

23. A frequency distribution is a tabulation of n data values into classes called bins.

TRUE
This is the definition of a frequency distribution.

Blooms: Remember

24. A dot plot would be useful in visualizing scores on an exam in a class of 30 students.

TRUE
Because the sample is small and data values are discrete, a dot plot would be good.

Blooms: Apply

25. A frequency distribution usually has equal bin widths.

TRUE
Unequal bins are possible, but rare (software default is equal bins).

Blooms: Remember
Difficulty: 1 Easy

26. Line charts are not used for cross-sectional data.

TRUE
Line charts are for time series data.

Blooms: Understand
Topic: Line Charts

27. A scatter plot is useful in visualizing trends over time.

FALSE
Use a line chart to visualize trends.

Blooms: Understand
Difficulty: 1 Easy

28. A scatter plot requires two quantitative variables (i.e., not categorical data).

TRUE
An X-Y plot makes no sense for nonnumerical data.

Blooms: Understand

29. The number of bins in this histogram (caffeine content in mg/oz for 65 soft drinks) is consistent with
Sturges' Rule.

FALSE
Sturges' Rule suggests k = 1 + 3.3 log(65) = 6.98, or about 7 bins.

Blooms: Apply

30. Because most data values are on the left, we would say that this dot plot (burglary rates per 100,000 persons
in 350 U.S. cities) shows a distribution that is skewed to the left (negatively skewed).

FALSE
Long right tail suggests positive skewness.

Blooms: Evaluate

31. It is possible to construct a histogram or frequency polygon with open-ended classes.

FALSE
Without limits, we can't mark bin limits on a graph.

Blooms: Understand

32. Except for the Y-axis scaling, a histogram will look the same if we use relative frequencies instead of raw
frequencies (with the same bin limits).

TRUE
Relative frequencies are just raw frequencies divided by the sample size.

Blooms: Understand


33. The ______________ can be used to differentiate the "vital few" causes of quality problems from the
"trivial many" causes of quality problems.

A. histogram
B. scatter plot
C. Pareto chart
D. box plot
A Pareto chart shows the causes in descending order of frequency.

Blooms: Remember
Difficulty: 1 Easy

34. Which is not a characteristic of a dot plot?

A. Simplicity
B. Legibilit
y
C. Wide bins
D. Dot stacking
In a dot plot, "bins" are really individual data values (not a range).

Blooms: Remember
Difficulty: 1 Easy

35. Which display is most likely to reveal association between X and Y?

A. Dot plot

B. Scatter plot
C. Histogram
D. Pareto chart
Scatter plots reveal covariance between X and Y.

Blooms: Remember
Difficulty: 1 Easy

36. Which criterion is least likely to be used in choosing bins (classes) in a frequency distribution?

A. Following Sturges' Rule

B. Selecting "nice" class (bin) limits
C. Using aesthetic judgment
D. Always starting at zero
Bins can start at any value.

Blooms: Understand


A. Line charts are not used for cross-sectional data.

B. Line charts are useful for visualizing categorical data.
C. Pyramid charts are generally preferred instead of column charts.
D. Pie charts can generally be used instead of bar charts.
Line charts require numerical data over time.

Blooms: Understand
Topic: Line Charts

38. Histograms generally do not reveal the:

A. exact data range.

B. modal classes (bins).
C. degree of skewness.
D. relative frequencies.
"Nice" bin limits may be at xmin and xmax.

Blooms: Understand

39. A column chart would be least suitable to display which data?

A. Annual compensation of 500 company CEOs

B. U.S. exports to its six largest trading partners
C. Exxon-Mobil's quarterly sales for the last four years
D. One-year CD interest rates paid by the eight largest U.S. banks
With 500 data values, a column chart would reveal little. Make a histogram instead.

Blooms: Evaluate

40. A line chart would not be suitable to display which data?

A. U.S. oil imports from OPEC nations for the last 20 years
B. Annual compensation of the top 50 CEOs
C. Exxon-Mobil's quarterly sales data for the last five years
D. Daily stock market closing prices of Microsoft for the past month
Line charts are for time series data (not cross-sectional data).

Blooms: Evaluate
Topic: Line Charts

41. Which is not a tip for effective column charts?

A. Time usually goes on the horizontal axis.

B. Column height should be proportional to the quantity displayed.
C. Label data values at the top of each column unless graphing lots of data.
D. The nonzero origin rule may be waived for financial reports.
Especially in financial reports, the zero origin rule is vital.

Blooms: Understand

42. Which is not a tip for effective line charts?

A. Line charts are better than bar charts to display cross-sectional data.
B. Numerical labels are omitted on a line chart if there are many data values.
C. Omit data markers (e.g., squares, triangles) when there are many data values.
D. Thick lines make it harder to see exact data values.
Line charts are for numerical time series data.

Blooms: Remember
Topic: Line Charts

43. Which is a reason for using a log scale for time series data?

A. It helps compare growth in time series of dissimilar magnitude.

C. On a log scale, equal distances represent equal dollar amounts.
D. The axis labels are usually easier to read in log units.
Changing magnitude may become a problem unless you use a log scale.

Blooms: Understand
Topic: Effective Excel Charts

44. Which is a not a characteristic of pie charts?

A. Pie charts can only convey a general idea of the data values.
B. Pie charts are ineffective when they have too many slices.
C. Exploded and 3-D pie charts will allow more "slices."
D. Pie chart data always represent parts of a whole (e.g., market share).
Pie charts with too many slices are hard to read whether 2D or 3D.

Blooms: Understand
Difficulty: 1 Easy
Topic: Pie Charts

45. Excel's pyramid charts:

A. are generally preferred to pie charts.

B. should be avoided despite their visual appeal.
C. are generally preferred to line charts.
D. show trends more clearly than column charts.
Avoid novelty charts in business presentations. They are fun but unclear.

Blooms: Remember

46. Which is not a reason why pie charts are popular in business?

A. They can convey a general idea of the data to a nontechnical audience.
B. They can display major changes in parts of a whole (e.g., market share).
C. They are more precise than line charts, despite their low visual impact.
D. They can be labeled with data values to facilitate interpretation.
Pie charts are attractive, but can be hard to read precisely.

Blooms: Understand
Topic: Pie Charts


A. Whirlpool Corporation's sales revenue for the last five years
B. Oxnard University student category (undergraduate, masters, doctoral)
C. Average SAT scores for entering freshmen at 10 major U.S. universities
D. U.S. toy imports from China over the past decade
Pie charts are only for parts of a whole.

Blooms: Analyze
Topic: Pie Charts


A. Percent vote in the last election by party (Democrat, Republican, Other)
B. Retail prices of six major brands of color laser printers
C. Labor cost per vehicle for 10 major world automakers
D. Prices paid by 10 students for their accounting textbooks

Blooms: Analyze
Topic: Pie Charts


A. Average starting salary of MBA graduates from six ivy-league universities
B. APR interest rates charged by the top five U.S. credit cards
C. Last semester's average GPA for students in seven majors in a business school
D. The number of U.S. primary care clinics by type (urban, suburban, rural)

Blooms: Analyze
Topic: Pie Charts

50. Scatter plots are:

A. useful in visualizing trends over time.

B. useful in identifying causal relationships.
C. often fitted with a linear equation in Excel.
D. applicable mainly to discrete data.
Excel makes it easy to fit a trend.

Blooms: Remember

51. Which is not a characteristic of an effective summary table?

A. The main point should be clear within 10 seconds.

B. Data to be compared should be displayed in rows, not columns.
C. Data should be rounded to three or four significant digits.
D. Use space instead of lines to separate columns.
Research suggests that side-by-side comparisons are easier.

Blooms: Remember
Topic: Tables

52. Effective summary tables generally:

A. have very detailed column headings and footnotes.

B. round their data to three or four significant digits.
C. use plenty of heavy vertical lines to separate the columns.
D. have the raw data listed in a footnote for clarity.
Too much accuracy may make it harder to assess magnitudes (e.g., 5.01873 mm and 5.02016 mm both
round to 5.02 mm).

Blooms: Remember
Learning Objective: 03-09 Make simple tables and pivot tables.
Topic: Tables

53. Pivot tables:

A. are similar in purpose to simple 2D pie charts.

B. show how the data "pivot" around a point.
C. show cross-tabulations of data.
D. are not really tables at all.
A pivot table shows frequency counts (or sums or averages) in a row-column format.

Blooms: Remember
Topic: Tables

54. Which of the following is least useful in visualizing categorical data?

A. Bar chart

B. Pie chart
C. Line chart
D. Pareto chart
Line charts are used to display numerical data over time.

Blooms: Understand
Difficulty: 1 Easy
Topic: Line Charts

55. Which is considered a novelty chart in Excel?

A. Pie chart

B. Column chart
C. Pyramid chart
D. Line chart
Pyramid charts utilize the area trick and are hard to read.

Blooms: Remember
Difficulty: 1 Easy

56. We would use a pivot table to:

A. cross-tabulate frequencies of occurrence of two variables.

B. rotate the data around a central point.
C. establish cause-and-effect between X and Y.
D. display the data in a 3D scatter plot.
A pivot table shows frequency counts (or sums or averages) in a row-column format.

Blooms: Remember
Difficulty: 1 Easy
Topic: Tables


A. Nonzero origin

B. Elastic graph proportions
C. Dramatic title
D. Axis demarcations
Axis demarcations are helpful on graphs with numerical scales.

Blooms: Remember
Difficulty: 1 Easy


A. Undefined units

B. 2D graphs
C. Authority figures
D. Distracting pictures
2D graphs are generally acceptable.

Blooms: Remember
Difficulty: 1 Easy

59. Which is the most serious deceptive graphical technique?

A. Vague source

B. Using bold colors
C. Nonzero origin
D. Unlabeled data points
A nonzero origin can distort relative size.

Blooms: Evaluate

60. Which is not a poor graphing technique?

A. Gratuitous pictures

B. Labeled axis scales
C. 3D bar charts
D. Rotated axis
Labeled axis scales are desirable for numerical data.

Blooms: Remember
Difficulty: 1 Easy

61. Which of these deficiencies would be considered a major graphical deception?

A. Vague or unclear source

B. Using more than one color or font
C. Bar widths proportional to bar height
D. Using a dramatic graph title
The area trick occurs when bar width increases along with bar height.

Blooms: Understand

62. Which is not a characteristic of a log scale for time series data?

A. Log scales are useful when data change by an order of magnitude.
B. The distance from 5 to 50 is the same as the distance from 50 to 500.
C. On a log scale, equal distances represent equal ratios.
D. Log scales are generally familiar to the average reader.
Some readers lack training to understand a simple log scale.

Blooms: Remember
Topic: Line Charts

63. Which is not a characteristic of using a log scale to display time series data?

A. A log scale helps if we are comparing changes in two time series of dissimilar magnitude.
C. If you display data on a log scale, equal distances represent equal ratios.
Some business audiences lack training to understand a simple log scale.

Blooms: Understand
Topic: Line Charts

64. This histogram shows Chris's golf scores in his last 77 rounds at Devil's Ridge. Which is not a correct
statement?

A. The number of bins is consistent with Sturges' Rule.

B. The histogram has a noticeable bimodal shape.
C. The modal class is 78 < 80.
D. About 15 percent of his scores are in the interval 74 < 76.
Sturges' Rule suggests k = 1 + 3.3 log(77) = 7.22 or about 7 bins.

Blooms: Apply

65. Which is not revealed on a scatter plot?

A. Pairs of observed (xi, yi ) data values

B. Nonlinear relationships between X and Y
C. Missing data values due to nonresponses
D. Unusual data values (outliers)
Excel simply omits missing data for a scatter plot.

Blooms: Analyze



C. skewed right.
D. skewed left.
You can see two modes and a longer right tail.

Blooms: Apply



C. skewed right.
D. skewed left.
You can see one mode and a long left tail.

Blooms: Apply

68. The graph below illustrates which deceptive technique?

A. Poor Y axis scale

B. Area trick
C. Unclear grid lines
D. Dramatic title
Area trick, because area increases along with height.

Blooms: Analyze

69. Which is a characteristic of a histogram's bars?

A. The bar widths reveal the cumulative frequencies of data values.
B. The bar widths indicate class intervals and their areas indicate frequencies.
C. The bar widths show class intervals and their heights indicate frequencies.
D. The bar widths are an exact multiple of the sample size.
Histogram bar height shows frequencies within each interval.

Blooms: Understand

70. Below is a frequency distribution of earnings of 50 contractors in a country.

Regarding this distribution, which of the following is correct?

A. The frequency distribution contains too many class intervals.

B. The class interval limits are ambiguous.
C. Too few classes were chosen.
D. The class intervals are too wide.
Overlapping bin limits.

Blooms: Apply

71. Bob found an error in the following frequency distribution. What is it?

A. The class limits are overlapping too much.

B. The classes are not collectively exhaustive.
C. There are too many classes by Sturges' Rule.
D. The first class must start at 0.
Where would you put a data value of 23?

Blooms: Analyze

72. The point halfway between the bin limits in a frequency distribution is known as the:

A. bin midpoint.

B. bin limit.
C. bin frequency.
D. bin width.
Bin midpoint is the average of the bin limits.

Blooms: Remember
Difficulty: 1 Easy

73. When using a dot plot with a small sample, which is least apparent?

A. Dispersion of data values within the array

B. The overall shape of the distribution
C. Central tendency of data in the data set
D. Location of data values within the array
Shape cannot be judged very well in small samples.

Blooms: Apply


A. 6
B. 7
C. 8
D. 9
Sturges' Rule suggests k = 1 + 3.3 log(256) = 9 bins.

Blooms: Apply


A. 5
B. 6
C. 7
D. 8

Blooms: Apply

76. Which statement is not true concerning Sturges' Rule?

A. It proposes adding one class (bin) to the histogram for each extra observation.
B. If you double the sample size, you should add one class.
C. Its purpose is to tell how many classes (bins) to use in a frequency distribution.
D. It is only a guideline and may be overruled by other considerations.
Sturges' Rule suggests about k = 1 + 3.3 log(n) bins.

Blooms: Apply
Difficulty: 3 Hard

77. To classify prices from 62 recent home sales, Sturges' Rule would recommend:

A. 7 classes.
B. 8 classes.
C. 9 classes.
D. 10 classes.

Blooms: Apply

78. A histogram can be defined as:

A. a chart whose bar widths show the cumulative frequencies of data values.
B. a chart whose bar widths indicate class intervals and whose areas indicate frequencies.
C. a chart whose bar widths show class intervals and whose heights indicate frequencies.
D. a chart whose bar heights represent the value of each data point.
Check textbook definition of histogram.

Blooms: Remember
Difficulty: 1 Easy

79. An open-ended bin (e.g., "50 and over") might be seen in a frequency distribution when:

A. some data values are not integers.

B. data values are nonnumerical.
C. extremely large data values exist.
D. some data are missing.
For example, General Electric's CEO earned $15.2 million in 2010, which would not fit the bins of a
histogram of incomes for ordinary taxpayers.

Blooms: Understand
Difficulty: 1 Easy

80. The width of a class in a frequency distribution is known as the:

A. midpoint.
B. class limit.
C. bin frequency.
D. class interval.
Bin width and class interval mean the same.

Blooms: Remember
Difficulty: 1 Easy

81. A population is of size 5,500 observations. When the data are represented in a relative frequency
distribution, the relative frequency of a given interval is 0.15. The frequency in this interval is equal to:

A. 4,675.
B. 800.
C. 675.
D. 825.
15 percent of 5,500 is 825.

Blooms: Apply
Difficulty: 1 Easy

82. A population has 75 observations. One class interval has a frequency of 15 observations. The relative
frequency in this category is:

A. 0.20.
B. 0.10.
C. 0.15.
D. 0.75.
15/75 = 0.20, or 20 percent.

Blooms: Apply
Difficulty: 1 Easy

vehicles on highway I-80 in Nebraska. How many vehicles were traveling exactly the speed limit (70 mph)?

A. 0
B. 1
C. 19
Fourth stem has only one value of 70.

Blooms: Understand
Difficulty: 1 Easy

vehicles on highway I-80 in Nebraska. What is the highest observed speed?

A. 92
B. 90
C. 87
Last stem top data value is 92.

Blooms: Understand
Difficulty: 1 Easy

vehicles on highway I-80 in Nebraska. What is the mode?

A. 62
B. 79
C. 65
The value 65 occurs 4 times. Some other data values occur 3 times.

Blooms: Understand

vehicles on highway I-80 in Nebraska. What is the fourth slowest speed in the sorted data array?

A. 61
B. 60
C. 55
Third stem second data value is 61.

Blooms: Understand

vehicles on highway I-80 in Nebraska. The modal class is:

A. 60 but less than 70.

B. 70 but less than 80.
C. 80 but less than 90.
D. impossible to determine.
All the raw data are available, so we can calculate any statistic.

Blooms: Understand
Difficulty: 1 Easy

88. A statistician prepared a bar chart showing, in descending order, the frequency of six underlying causes of
general aviation accidents (pilot error, mechanical problems, disorientation, miscommunication, controller
error, other). What would we call this type of chart?

A. Pivot table

B. Pareto chart
C. Log scale chart
D. Frequency polygon
A Pareto chart displays the causes in descending order of frequency.

Blooms: Remember


89. Briefly list strengths and weaknesses of this display. Cite specific principles of good graphs, as well as

Colorful, cute subtitle adds nothing; 3D slices hard to read; too many pie slices; too much information;
distracting pictures; no source; no time period; no units of measurement.
Feedback: Colorful, but cute subtitle adds nothing; 3D slices are hard to read; too many pie slices; too much
information displayed; distracting pictures; no source; no time period stated; units of measurement not given
(e.g., surgeries performed?).

Blooms: Evaluate


Attractive, attention-getting, but area trick is used (bars get wider as well as taller), no source, definition is
unclear.
Feedback: Attractive, attention-getting, but area trick is used (bars get wider as well as taller), no source,
definition is unclear (whose fire losses—homes? businesses? all?).

Blooms: Evaluate


Clear graph, clear title, but no source, no definition of calls, no time period, and, worst of all, a nonzero
origin.
Feedback: Sober, clear, attractive graph with clear title, but no source, no definition of calls (whose?), no
time period stated, and, worst of all, the graph has a nonzero origin, which exaggerates changes.

Blooms: Evaluate


Unhelpful title, units not given, no source, no definitions, cluttered. Probably a table would work better.
Feedback: Unhelpful title, units not given, no source, no definition of what is shown, too cluttered. Probably
a table would work better.

Blooms: Evaluate


As pie charts go, not too bad, labeled clearly, 2D is easy to read, colors provide good contrast, but no year of
source is given.
Feedback: As pie charts go, not too bad (not too many slices, labeled clearly, 2D is easy to read, colors
provide good contrast). Basis for the data is not shown (what year), but source is given.

Blooms: Evaluate
Topic: Pie Charts

94. A study found the following parts per billion of nitrosamines in a sample of domestic beers. (a) Construct a
frequency distribution of four classes with equal class sizes. (b) Construct another frequency distribution of
four classes using unequal class intervals or an open-ended interval for the highest class. (c) Which
frequency distribution is preferable? Why?

Answers will vary. Sturges' Rule suggests 5 to 6 bins, but the outlier (15.75) poses a problem that might
require unequal bins (e.g., 1.00 < 2.00, 2.00 < 4.00, 4.00 < 8.00, 8.00 < 16.00) instead of four equal-width
bins (e.g., 0.00 < 4.00, 4.00 < 8.00, 8.00 < 12.00, 12.00 < 16.00). Equal width bins are usually preferred to
avoid visual distortion, but in this case there would be an empty bin (8.00 < 12.00). An alternative might be
an open-ended top interval.
Feedback: Answers will vary. Sturges' Rule suggests 5 to 6 bins, but the outlier (15.75) poses a problem that
might require unequal bins (e.g., 1.00 < 2.00, 2.00 < 4.00, 4.00 < 8.00, 8.00 < 16.00) instead of four equal-
width bins (e.g., 0.00 < 4.00, 4.00 < 8.00, 8.00 < 12.00, 12.00 < 16.00). Equal width bins are usually
preferred to avoid visual distortion, but in this case there would be an empty bin (8.00 < 12.00). An
alternative might be an open-ended top interval.

Blooms: Evaluate

95. Students were given a take-home statistics assignment and were asked to write down how long it took them
(in minutes). Their answers are shown below. (a) Make a dot plot. (b) Use your judgment to construct a
frequency distribution using whatever classes (bins) you wish. (c) Make a histogram. (d) Describe the
distribution. (e) Did your bin choices agree with Sturges' Rule? If not, why not?

Dot plot suggests right-skewness. Sturges' Rule suggests 6 classes, but 7 bins of size 5 might be needed to
show enough detail, while four classes of size 10 might not show enough detail.
Feedback: The dot plot suggests right-skewness:

Histogram answers will vary depending on the number of classes and the size of the intervals selected. The
histogram will be skewed to the right. Sturges' Rule suggests 6 classes, but 7 classes of size 5 will be needed
to show enough detail (see below). Four classes of size 10 are OK but may not show enough detail.

Blooms: Evaluate

96. Students were asked to record how many hours they worked at an outside job last week. Their answers are
shown below. (a) Make a dot plot. (b) Use your judgment to construct a frequency distribution using
whatever classes (bins) you wish. (c) Make a histogram. (d) Describe the distribution. (e) Did your bin
choices agree with Sturges' Rule? If not, why not?

Dot plot suggests right-skewness. Sturges' Rule suggests 5 or 6 classes. Six classes of size 10 would work,
though the two 50s are on the end of the top class.
Feedback: The dot plot suggests right-skewness:

Histogram answers will vary depending on the number of classes and the size of the intervals selected. The
histogram will be slightly skewed to the right. Sturges' Rule suggests 5 or 6 classes. Six classes of size 10
would work, though the two 50s are on the end of the top class.

Blooms: Evaluate

97. Ten part-time servers at a high-end restaurant were asked how many hours they worked last week and how
much they earned. The results are shown below. (a) Make a scatter plot. (b) Describe it. (c) What is your
best guess of the average hourly pay?

Positive relationship on a scatter plot, somewhat linear, with slope about $10.
Feedback: Clearly a positive relationship, somewhat linear. Most students will guess that the average rate of
pay is about $10 (rise over run).

Blooms: Apply

98. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab short box
truck. Describe Craig's gasoline mileage based on this histogram of 195 tanks of gas.

Strong clustering near 13 MPG, a few possible outliers, only one mode.
Feedback: Strong clustering near 13 MPG but a few possible outliers. Only one mode.

Blooms: Evaluate

99. Here are advertised prices of 23 used Chevy Impalas. Describe the distribution's shape. Is the number of
histogram classes correct?

Correct, since Sturges' Rule suggests 5 or 6 classes; shape is somewhat skewed right.
Feedback: OK since Sturges' Rule suggests 5 or 6 classes. Shape is somewhat skewed right.

Blooms: Apply


Source given, axes are clearly labeled, title is not dramatic. However, does not start at zero, and the
distracting pictures obscure the data and create a feeling of emotional distress.
Feedback: Data appear to be from a reliable source, axes are clearly labeled, and title is not dramatic. But
the graph does not start at zero, which exaggerates the increase in bankruptcies, and the distracting pictures
obscure the data and create a feeling of emotional distress.

Blooms: Evaluate


No source, no units given, area trick distorts the data, and no definitions. Graphic is appealing, but it adds
nothing to the data. Title is not dramatic, data labels are good, Y-axis starts at zero, years are clearly labeled,
and gridlines are not too prominent.
Feedback: No source, no units given (dollars? number of players sold?), area trick distorts the data, and no
indication of what the data represent (sales in one store? One city?). Graphic is appealing, but it adds
nothing to the data. Title is not dramatic, data labels are good, Y-axis starts at zero, years are clearly labeled,
gridlines are not too prominent.

Blooms: Evaluate


Proportions are good, title is clear. Units are not defined, no source, a bit cluttered.
Feedback: Proportions are good, and title is clear, but units are not defined (dollars? units sold?). No source.
A bit cluttered, but only alternative would be a table.

Blooms: Evaluate


Eye-catching and colorful. Title is vague, units are not given, too many pie slices, 3D makes it hard to assess
size of slices, no source, no year.
Feedback: Eye-catching and colorful, but title is vague, units are not given, too many pie slices, 3D makes it
hard to assess size of slices, no source, and no year.

Blooms: Evaluate
Topic: Pie Charts


Amusing and colorful, but too much information shown, pictures are distracting, no time period or dates
given, no source, and nonzero origin exaggerates changes.
Feedback: Amusing and colorful, but too much information shown, pictures are distracting, no time period
or dates given, no source, whose stocks are they? Nonzero origin exaggerates changes.

Blooms: Evaluate


Colorful and amusing, but no clue what is being shown; deceptive area trick; no dates given; no source;
useless title.
Feedback: Colorful and amusing, but no clue what is being shown. Whose retirement? What kind of
investment is this? Deceptive area trick (dollar signs grow in width as well as height), no dates given, no
source, useless title.

Blooms: Evaluate


Amusing and colorful but dramatic, leading title, no dates, distracting pictures, area trick, no source, what
institution(s) does the graph refer to?
Feedback: Amusing and colorful but dramatic, leading title, no dates, distracting pictures, area trick (bars
grow wider as well as taller), no source, what institution(s) does the graph refer to?

Blooms: Evaluate


Funny pictures, attention-getting, but a simple line chart would do. Dramatic title belies the data (no obvious
"progress"). Whose scores? When? No source given.
Feedback: Funny pictures, attention-getting, but a simple line chart would do. Leading, dramatic title belies
the data (no obvious "progress"). Whose scores? When? No source given.

Blooms: Evaluate

108. Briefly comment on strengths and weaknesses of this display. Cite specific principles of good graphs, as
well as offering your own general interpretation.

Attractive, but area trick is deceptive (bars get wider as well as taller); distracting pictures; how many
physicians; no source.
Feedback: Attractive, but area trick is deceptive (bars get wider as well as taller); distracting pictures; how
many physicians (otherwise total tells us little—maybe they just hired more docs).

Blooms: Evaluate

Chapter 04
Descriptive Statistics


1. A data set with two values that are tied for the highest number of occurrences is called bimodal.

True False

2. The midrange is not greatly affected by outliers.

True False

3. The second quartile is the same as the median.

True False

4. A trimmed mean may be preferable to a mean when a data set has extreme values.

True False

5. One benefit of the box plot is that it clearly displays the standard deviation.

True False

6. It is inappropriate to apply the Empirical Rule to a population that is right-skewed.

True False

7. Given the data set 10, 5, 2, 6, 3, 4, 20, the median value is 5.

True False

8. Given the data set 2, 5, 10, 6, 3, the median value is 3.

True False

9. When data are right-skewed, we expect the median to be greater than the mean.

True False

10. The sum of the deviations around the mean is always zero.

True False

11. The midhinge is a robust measure of center when there are outliers.

True False

12. Chebyshev's Theorem says that at most 50 percent of the data lie within 2 standard deviations of the mean.

True False

13. Chebyshev's Theorem says that at least 95 percent of the data lie within 2 standard deviations of the mean.

True False

14. If there are 19 data values, the median will have 10 values above it and 9 below it since n is odd.

True False

15. If there are 20 data values, the median will be halfway between two data values.

True False

16. In a left-skewed distribution, we expect that the median will be greater than the mean.

True False

17. If the standard deviations of two samples are the same, so are their coefficients of variation.

True False

18. A certain health maintenance organization (HMO) examined the number of office visits by its members in the
last year. This data set would probably be skewed to the left due to low outliers.

True False

19. A certain health maintenance organization (HMO) examined the number of office visits by its members in the
last year. For this data set, the mean is probably not a very good measure of a "typical" person's office visits.

True False

20. Referring to this box plot of ice cream fat content, the median seems more "typical" of fat content than the
midrange as a measure of center.

True False

21. Referring to this box plot of ice cream fat content, the mean would exceed the median.

True False

22. Referring to this box plot of ice cream fat content, the skewness would be negative.

True False

23. Referring to this graph of ice cream fat content, the second quartile is about 61.

True False

24. The range as a measure of variability is very sensitive to extreme data values.

True False

25. In calculating the sample variance, the sum of the squared deviations around the mean is divided by n - 1 to
avoid underestimating the unknown population variance.

True False

26. Outliers are data values that fall beyond ±2 standard deviations from the mean.

True False

27. The Empirical Rule assumes that the distribution of data follows a normal curve.

True False

28. The Empirical Rule can be applied to any distribution, unlike Chebyshev's theorem.

True False

29. When applying the Empirical Rule to a distribution of grades, if a student scored one standard deviation below
the mean, then she would be at the 25th percentile of the distribution.

True False

30. Kurtosis cannot be judged accurately by looking at a histogram.

True False

31. A platykurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

True False

32. A leptokurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

True False

33. A positive kurtosis coefficient in Excel indicates a leptokurtic condition in a distribution.

True False

34. A sample consists of the following data: 7, 11, 12, 18, 20, 22, 43. Using the "three standard deviation" criterion,
the last observation (X = 43) would be considered an outlier.

True False


35. The coefficient of variation is

A. measured on a scale from 0 to 100.

B. a unit-free statistic.
C. helpful when the sample means are zero.
D. a measure of correlation for two variables.

36. Which is not an advantage of the method of medians to find Q1 and Q3?

A. Ease of interpolating quartile positions

B. Ease of application in small data sets
C. Intuitive definitions without complex formulas
D. Same method as Excel's =QUARTILE.EXC function.

37. Which is a characteristic of the mean as a measure of center?

A. Deviations do not sum to zero when there are extreme values.

B. It is less reliable than the mode when the data are continuous.
C. It utilizes all the information in a sample.
D. It is usually equal to the median in business data.

38. The position of the median is:

A. n/2 in any sample.

B. n/2 if n is even.
C. n/2 if n is odd.
D. (n + 1)/2 in any sample.

39. Which is a characteristic of the trimmed mean as a measure of center?

A. It is similar to the mean if there are offsetting high and low extremes.
B. It is especially helpful in a small sample.
C. It does not require sorting the sample.
D. It is basically the same as the midrange.

40. Which is not a characteristic of the geometric mean as a measure of center?

A. It is similar to the mean if the data are skewed right.

B. It mitigates the effects of large data values.
C. It is useful in business data to calculate average growth rates.
D. It cannot be calculated when the data contain negative or zero values.

41. Which is not a characteristic of the standard deviation?

A. It is always the square root of the variance.

B. It is not applicable when data are continuous.
C. It can be calculated when the data contain negative or zero values.
D. Its physical interpretation is not as easy as the MAD.

42. Chebyshev's Theorem:

A. applies to all samples.

B. applies only to samples from a normal population.
C. gives a narrower range of predictions than the Empirical Rule.
D. is based on Sturges' Rule for data classification.

43. Which of the following is not a valid description of an outlier?

A. A data value beyond the outer fences

B. A data value that is very unusual
C. A data value that lies below Q1 or above Q3
D. A data value several standard deviations from the mean.

44. If samples are from a normal distribution with μ = 100 and σ = 10, we expect:

A. about 68 percent of the data within 90 to 110.

B. almost all the data within 80 to 120.
C. about 95 percent of the data within 70 to 130.
D. about half the data to exceed 75.

45. In a sample of 10,000 observations from a normal population, how many would you expect to lie beyond three
standard deviations of the mean?

A. None of them
B. About 27
C. About 100
D. About 127

46. The Excel formula for the standard deviation of a sample array named Data is:

A. =STDEV.S(Data).
B. =STANDEV(Data).
C. =STDEV.P(Data).
D. =SUM(Data)/(COUNT(Data)-1).

47. Which is not true of an outlier?

A. It is likely to be from a different population.

B. It suggests an error in recording the data.
C. It is best discarded to get a better mean.
D. It is an anomaly that may tell the researcher something.

48. Estimating the mean from grouped data will tend to be most accurate when:

A. observations are distributed uniformly within classes.

B. there are few classes with wide class limits.
C. the sample is not very large and bins are wide.
D. the standard deviation is large relative to the mean.

49. Which is true of the kurtosis of a distribution?

A. A distribution that is flatter than a normal distribution (i.e., thicker tails) is mesokurtic.
B. A distribution that is more peaked than a normal distribution (i.e., thinner tails) is platykurtic.
C. It is risky to assess kurtosis if the sample size is less than 50.
D. The expected range of the kurtosis coefficient increases as n increases.

50. Which is true of skewness?

A. In business data, positive skewness is unusual.

B. In a negatively skewed distribution, the mean is likely to exceed the median.
C. Skewness often is evidenced by one or more outliers.
D. The expected range of Excel's skewness coefficient increases as n increases.

51. Which is not true of the Empirical Rule?

A. It applies to any distribution.

B. It can be applied to fewer distributions than Chebyshev's Theorem.
C. It assumes that the distribution of data follows a bell-shaped, normal curve.
D. It predicts more observations within μ ± kσ than Chebyshev's Theorem.

52. Which is a correct statement concerning the median?

A. In a left-skewed distribution, we expect that the median will exceed the mean.
B. The sum of the deviations around the median is zero.
C. The median is an observed data value in any data set.
D. The median is halfway between Q1 and Q3 on a box plot.

53. Which statement is true?

A. With nominal data we can find the mode.

B. Outliers distort the mean but not the standard deviation.
C. Business and economic data are rarely skewed to the right.
D. If we sample a normal population, the sample skewness coefficient is exactly 0.

54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this data set, which statement
is incorrect concerning measures of center?

A. The median is 60.00.

B. The mode is not helpful.
C. The 5 percent trimmed mean would be awkward.
D. The geometric mean is 35.05.

55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data set, which statement is
incorrect concerning measures of center?

A. The median is 70.

C. The geometric mean is useless.
D. The mean is 70.

56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which statement is
incorrect?

A. The standard deviation is 29.61.

B. The data are slightly left-skewed.
C. The midrange and mean are almost the same.
D. The third quartile is 90.

57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm and the mean weight is 84 kg
with a standard deviation of 8 kg. Elmer is 170 cm tall and weighs 70 kg. It is most nearly correct to say that:

A. Elmer's weight is more unusual than his height.

B. Elmer is heavier than he is tall.
C. Height and weight have the same degree of variation.
D. Height has more variation than weight.

58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences, which is correct?

A. John is an extreme outlier.

B. John is an outlier.
C. John is not an outlier.
D. John is in the 85th percentile.

59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences, which is correct?

A. John is unusual but not an outlier.

C. John is neither unusual nor an outlier.

60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population variance is:

A. 6.07.
B. 36.82.
C. 5.16.
D. 22.86.

61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median are:

A. 69 and 17.5.

B. 66 and 17.5.
C. 66 and 17.
D. 69 and 17.

62. When a sample has an odd number of observations, the median is the:

A. observation in the center of the data array.

B. average of the two observations in the center of the data array.
C. value of the most frequent observation.
D. average of Q1 and Q3.

63. As a measure of variability, compared to the range, an advantage of the standard deviation is:

A. being calculated easily through the use of a formula.

B. considering only the data values in the middle of the data array.
C. describing the distance between the highest and lowest values.
D. considering all data values.

64. Which two statistics offer robust measures of center when outliers are present?

A. Mean and mode.

B. Median and trimmed mean.
C. Midrange and geometric mean.
D. Variance and standard deviation.

65. Which Excel function is designed to calculate z = (x - μ)/σ for a column of data?

A. =STANDARDIZE
B. =NORM.DIST
C. =STDEV.P
D. =AVEDE
V

66. Which Excel function would be least useful to calculate the quartiles for a column of data?

A. =STANDARDIZE
B. =PERCENTILE.EXC
C. =QUARTILE.EXC
D. =RAN
K

67. A sample of 50 breakfast customers of McDonald's showed the spending below. Which statement is least likely
to be correct?

A. The median is very close to the midhinge.

B. The median purchase is slightly less than $5.
C. About 75 percent of the customers spend less than $7.
D. The mean is a reasonable measure of center.

68. VenalCo Market Research surveyed 50 individuals who recently purchased a certain CD, revealing the age
distribution shown below. Which statement is least defensible?

A. The mean age probably exceeds the median age.

B. The mode would be a reasonable measure of center.
C. The data are somewhat skewed to the left.
D. The CD is unlikely to appeal to retirees.

69. Given a sample of three items (X = 4, 6, 5), which statement is incorrect?

A. The geometric mean is 5.2.

B. The standard deviation is 1.
C. The coefficient of variation is 20 percent.
D. The quartiles are useless.

70. A sample of customers from Barnsboro National Bank shows an average account balance of $315 with a
standard deviation of $87. A sample of customers from Wellington Savings and Loan shows an average account
balance of $8350 with a standard deviation of $1800. Which statement about account balances is correct?

A. Barnsboro Bank has more variation.

B. Wellington S&L has more variation.
C. Both have the same variation.

71. Histograms are best used to:

A. provide a visual estimate of the standard deviation.

B. show the quartiles of the data set.
C. assess the shape of the distribution.
D. reveal the interquartile range of the data set.

72. The ______________ shows the relationship between two variables.

A. box plot
B. bar chart
C. histogram
D. scatter plot

73. If the mean and median of a population are the same, then its distribution is:

A. normal.
B. skewed.
C. symmetric.
D. uniform.

74. In the following data set {7, 5, 0, 2, 7, 15, 5, 2, 7, 18, 7, 3, 0}, the value 7 is:

A. the mean.
B. the mode.
C. both the mode and median.
D. both the mean and mode.

75. The median of 600, 800, 1000, 1200 is:

A. 800.
B. 1000.
C. 900.
D. 950.

76. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. The
interquartile range is:

A. 12 minutes.
B. 16 minutes.
C. 22 minutes.
D. impossible to determine without knowing n.

77. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. Which
is incorrect regarding the fences?

A. The upper inner fence is 49 minutes.

B. The upper outer fence is 67 minutes.
C. A waiting time of 45 minutes exceeds the upper inner fence.
D. A waiting time of 70 minutes would be an outlier.

78. When using Chebyshev's Theorem, the minimum percentage of sample observations that will fall within two
standard deviations of the mean will be __________ the percentage within two standard deviations if a normal
distribution is assumed (Empirical Rule).

A. smaller than
B. greater than
C. the same as

79. Which distribution is least likely to be skewed to the right by high values?

A. Annual incomes of n passengers on a flight from New York to London

B. Weekend gambling losses of n customers at a major casino
C. Accident damage losses by n renters of an auto rental company
D. Cost of a plain McDonald's hamburger in n U.S. cities

80. Based on daily measurements, Bob's weight has a mean of 200 pounds with a standard deviation of 16 pounds,
while Mary's weight has a mean of 125 pounds with a standard deviation of 15 pounds. Who has the smaller
relative variation?

A. Bob
B. Mary
C. They are the same.

81. Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches with a
standard deviation of 2.5 inches and a mean weight of 125 pounds with a standard deviation of 10 pounds. In
relative terms, it is correct to say that:

A. Frieda is taller and thinner than women in her age group.

B. for this group of women, weight has greater variation than height.
C. Frieda's height is more unusual than her weight.
D. the variation coefficient exceeds 10 percent for both height and weight.


A. The coefficient of variation cannot be used when the mean is zero.

B. The standard deviation is in the same units as the mean (e.g., kilograms).
C. The mean from a frequency tabulation may differ from the mean from raw data.
D. The skewness coefficient is zero in a sample from any normal distribution.

83. The values of xmin and xmax can be inferred accurately except in a:

A. box plot.
B. dot plot.
C. histogram.
D. scatter plot.

84. Which of the following statements is likely to be true?

A. The median personal income of California taxpayers would probably be near the mean.
B. The interquartile range offers a measure of income inequality among California residents.
C. For income, the sum of squared deviations about the mean is negative about half the time.
D. For personal incomes in California, outliers in either tail would be equally likely.

85. Which statistics offer robust (resistant to outliers) measures of center?

A. Mean, midrange, mode.

B. Median, midhinge, trimmed mean.
C. Trimmed mean, midrange, midhinge.
D. Mean, mode, quartiles.

86. The Empirical Rule says that:

A. most business data sets are normally distributed.

B. outliers are within three standard deviations of the mean.
C. in most business data we expect the mean and median to be similar.
D. about 32 percent of the data are beyond one standard deviation from the mean.

87. Three randomly chosen Seattle students were asked how many round trips they made to Canada last year. Their
replies were 3, 4, 5. The geometric mean is:

A. 3.877.
B. 4.000.
C. 3.915.
D. 4.422.

88. Three randomly chosen California students were asked how many times they drove to Mexico last year. Their
replies were 4, 5, 6. The geometric mean is:

A. 3.87.
B. 5.00.
C. 5.42.
D. 4.93.

89. Three randomly chosen Colorado students were asked how many times they went rock climbing last month.
Their replies were 5, 6, 7. The standard deviation is:

A. 1.212.
B. 0.816.
C. 1.000.
D. 1.056.

90. Patient survival times after a certain type of surgery have a very right-skewed distribution due to a few high
outliers. Consequently, which statement is most likely to be correct?

A. Median > Midrange

B. Mean < Median
C. Mean > Midrange
D. Mean > Trimmed Mean

91. So far this year, stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while stock
B has had a mean price of $10.57 per share with a standard deviation of $3.02. Which stock is more volatile?

A. Stock A
B. Stock B

92. Outliers are indicated using fences on a

A. box plot.
B. dot plot.
C. histogram.
D. Pareto chart.

93. Which is not a measure of variability?

A. Mean absolute deviation (MAD)

B. Range
C. Coefficient of variation
D. Trimmed mean

94. Twelve randomly chosen students were asked how many times they had missed class during a certain semester,
with this result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The geometric mean is:

A.
B. 2.604
C. 1.517
D.

with this result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The median is:

A. 7.0.
B. 3.0.
C. 3.5.
D. 2.5.

96. One disadvantage of the range is that:

A. only extreme values are used in its calculation.

B. it is expressed in different units than the mean.
C. it does not exist for some data sets.
D. it is undefined if any X values are 0 or negative.

97. Which is a characteristic of the standard deviation?

A. It is not greatly affected by outliers.

B. It is measured in the same units as the mean.
C. It measures dispersion around the median.
D. It has a natural, concrete meaning.

with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the geometric mean is:

A. 2.158.
B. 1.545.
C. 2.376.
D. 3.017.

with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is:

A. 2.
B. 3.
C. 3.5.
D. 2.5.

with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which measure of center is least representative
of the "typical" student?

A. Mean
B. Median
C. Mode
D. Midrange

101. Here are statistics on order sizes of Megalith Construction Supply's shipments of two kinds of construction
materials last year.

Which order sizes have greater variability?

A. Girders
B. Rivets
D. Cannot be determined without knowing n

102. The quartiles of a distribution are most clearly revealed in which display?

A. Box plot
B. Scatter plot
C. Histogram
D. Dot plot

103. The sum of the deviations around the mean is:

A. greater than zero if data are right-skewed.

B. smaller when the units are smaller (e.g., milligrams versus kilograms).
C. always zero.
D. dependent on the sample size.

104. What does the graph below (profit/sales ratios for 25 Fortune 500 companies) reveal?

A. That the median exceeds the mean.

B. That the data are slightly left-skewed.
C. That the interquartile range is about 8.
D. That the distribution is bell-shaped.

105. Find the sample correlation coefficient for the following data.

A. .8911
B. .9132
C. .9822
D. .9556

106. Heights of male students in a certain statistics class range from Xmin = 61 to Xmax = 79. Applying the Empirical
Rule, a reasonable estimate of σ would be:

A. 2.75.
B. 3.00.
C. 3.25.
D. 3.50.

107. A reporter for the campus paper asked five randomly chosen students how many occupants, including the
driver, ride to school in their cars. The responses were 1, 1, 1, 1, 6. The coefficient of variation is:

A. 25 percent.
B. 250 percent.
C. 112 percent.
D. 100 percent.

108. A smooth distribution with one mode is negatively skewed (skewed to the left). The median of the distribution
is $65. Which of the following is a reasonable value for the distribution mean?

A. $76
B. $54
C. $81
D. $65

109. In a positively skewed distribution, the percentage of observations that fall below the median is:

A. about 50 percent.
B. less than 50 percent.
C. more than 50 percent.
D. can't tell without knowing n.

110. Which is a weakness of the mode?

A. It does not apply to qualitative data.

B. It is inappropriate for continuous data.
C. It is hard to calculate when n is small.
D. It is usually about the same as the median.

111. The mode is least appropriate for:

A. continuous data.
B. categorical data.
C. discrete data.
D. Likert scale data.

This box plot of Craig's MPG on 195 tanks of gas does not support which statement?

A. There are several outliers.

B. This is a very right-skewed distribution.
C. Most MPG values are concentrated in a narrow range.
D. The interquartile range is less than 2 MPG.

113. Estimate the mean exam score for the 50 students in Prof. Axolotl's class.

A. 59.2
B. 62.0
C. 63.5
D. 64.1

114. A survey of salary increases received during a recent year by 44 working MBA students is shown. Find the
approximate mean percent raise.

A. 6.56
B. 6.74
C. 5.90
D. 6.39

115. The following frequency distribution shows the amount earned yesterday by employees of a large Las Vegas
casino. Estimate the mean daily earnings.

A. $112.50
B. $125.01
C. $105.47
D. $117.13

116. The following table is the frequency distribution of parking fees for a day:

The mean parking fee is:

A. $7.07.
B. $6.95.
C. $7.00.
D. $7.25.

117. Find the standard deviation of this sample: 4, 7, 9, 12, 15.

A. 4.550
B. 3.798
C. 4.278
D. 2.997

118. The 25th percentile for waiting time in a doctor's office is 10 minutes. The 75th percentile is 30 minutes. Which
is incorrect regarding the fences?


C. A waiting time of 45 minutes would be an outlier.
D. The lower fences are not relevant in this problem.

119. Five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home sold
for $2.5 million. Which measure of central tendency best represents a typical home price in Oxnard Acres?

A. The mean or median.

B. The median or mode.
C. The mean or mode.
D. The midrange or mean.

120. In Tokyo, construction workers earn an average of ×420,000 (yen) per month with a standard deviation of
×20,000, while in Hamburg, Germany, construction workers earn an average of €3,200 (euros) per month with
a standard deviation of €57. Who is earning relatively more, a worker making ×460,000 per month in Tokyo or
one earning €3,300 per month in Hamburg?

A. The workers are the same in relative terms.

B. The Tokyo worker is relatively better off.
C. The Hamburg worker is relatively better off.

121. Which statement is false? Explain.

A. If μ = 52 and σ = 15, then X = 81 would be an outlier.

B. If the data are from a normal population, about 68 percent of the values will be within μ ± σ.
C. If μ = 640 and σ = 128, then the coefficient of variation is 20 percent.



B. Standard deviation
C. Midhinge
D. Interquartile range

123. If Q1 = 150 and Q3 = 250, the upper fences (inner and outer) are:

A. 450 and 600.

B. 350 and 450.
C. 400 and 550.
D. impossible to determine without more information.

124. Variables X and Y have the strongest correlation in which scatter plot?

A. Figure A.
B. Figure B.
C. They are about the same.

125. Which of the following statements is likely to apply to the incomes of 50 randomly chosen taxpayers in
California?

A. The median income would probably be near the mean.

B. The midhinge would be a robust measure of center.
C. The sum of squared deviations about the mean would be negative.
D. Outliers in either tail would be equally likely.

126. A certain health maintenance organization (HMO) examined the number of office visits by each of its members
in the last year. For this data set, we would anticipate that the geometric mean would be

A. a reasonable measure of center.

B. zero because some HMO members would not have an office visit.
C. too high because the distribution is likely to be skewed to the left.
D. negative because some data values would be below the mean.

Their replies were 5, 6, 7. The coefficient of variation is:

A. 16.7 percent.
B. 13.6 percent.
C. 20.0 percent.
D. 35.7 percent.

128. The mean of a population is 50 and the median is 40. Which histogram is most likely for samples from this
population?

A. Sample A.
B. Sample B.
C. Sample C.

129. If Excel's sample skewness coefficient is positive, we conclude that

A. the population is skewed to the right, if the sample size is small.

B. the population is symmetric, as long as the sample size is very large.
C. the coefficient is within the range of chance for a symmetric population.
D. we should consult a table of percentiles that takes sample size into consideration.

130. If Excel's sample kurtosis coefficient is negative, we conclude that

A. the population is platykurtic, as long as the sample size is small.

B. the population is leptokurtic, as long as the sample size is large.


131. In Osaka, Japan, stock brokers earn ×6000 per hour on the average, with a standard deviation of ×1200. In
Stuttgart, Germany, stock brokers earn an average of €18 per hour with a standard deviation of €6. In which
country is the variation in wages greatest?

132. Find the coefficient of variation of these numbers: 14, 17, 17, 19, 26. Would the variability of those numbers be
greater than, less than, or the same as the variability of 24, 27, 27, 29, 36? Defend your answer.

133. Ten randomly chosen students at a certain university were asked how many times they smoked marijuana
during the preceding week. Their answers were 0, 8, 0, 0, 2, 4, 0, 0, 6, 0. A campus newspaper article appeared,
with the headline "Average Student Uses No Pot." Is this a fair assessment of central tendency? Discuss the
alternatives.

134. Twelve students were asked how many credit cards they owned. The responses were 0, 0, 1, 2, 2, 3, 3, 4, 4, 5,
5, 11. (a) Find the mean, median, and mode. (b) Which measure of center seems best in this case? (c) Find the
first and third quartiles. What do they tell you?

135. Eleven students were asked how many siblings they had. The responses were 0, 1, 2, 2, 2, 2, 2, 3, 3, 4, 5. Find
the mean, median, mode, and geometric mean. Which would you prefer in this case, and why not the others?

136. Patient waiting times in the Tardis Orthopedic Clinic have a mean of 50 minutes with a standard deviation of 25
minutes. Within what range would approximately 95 percent of the waiting times lie if we were sampling a
normal distribution? Do you think the distribution is likely to be normal? Explain.

137. The athletic departments at 10 randomly selected U.S. universities were asked by the Equal Employment
Opportunity Commission to state what percentage of their nursing scholarships were presently held by women.
The responses were 5, 4, 2, 1, 1, 2, 10, 5, 5, 5. Find the mean, median, mode, and geometric mean. Which is the
most appropriate measure of central tendency? The least appropriate? Explain your answer. Is there an outlier?

138. A survey of 10 randomly chosen drivers showed the following number of persons per car, including the driver:
1, 5, 1, 5, 2, 1, 1, 1, 2, 1. Describe the center, variability, and skewness for this sample.

139. A national survey showed that most commuter cars contain only the driver. Hungry for a story, a campus
newspaper reporter asked five randomly chosen commuter students how many occupants, including the driver,
rode to school in their cars. Their responses were 1, 1, 1, 1, and 6. The next day a story appeared in the paper
headlined "University Commuters Double National Average Ridership." Is this a reasonable assessment of
central tendency? How would you characterize the variability of the sample?

140. A 10-point quiz was given by Professor Ennuyeaux. Of the 10 students in the class, half got zero and the others
got perfect scores. List the students' scores. Then find the mean, median, mode, and geometric mean of their
scores. Which is the most appropriate measure of center? The least appropriate?

141. The owner of a chicken farm kept track of each hen's eating and egg production for many months, with the
results below. Which has more variation, feed consumption or egg output?

142. Below are the ages of 21 CEOs. Find the mean, median, and mode. Are there any outliers? Explain.
46, 48, 49, 49, 50, 52, 54, 55, 57, 57, 58, 59, 60, 61, 62, 62, 63, 63, 65, 67, 75

143. Bob's sample of freshman GPAs showed a mean of 2.72 with a standard deviation of 0.31. (a) What range
would you predict for all the grades? For the middle 95 percent? Explain. (b) Why might your estimates be
inaccurate?

144. A team of introductory statistics students went to a grocery store and recorded the total calories and fat calories
for various kinds of soup. They produced a table of statistics and two dot plots. Write a succinct summary of
the center, variability, and shape for each data set. Note: TrimMean is the 5 percent trimmed mean (removing
the smallest 5 percent and the largest 5 percent of the values, rounded to the nearest integer).

145. Here are descriptive statistics from Excel for annual per-pupil expenditures in 94 Ohio cities and home sizes in
a certain neighborhood. Very briefly compare the variability and shape of the two data sets.

146. Below are shown a dot plot and summary statistics for a random sample of 34 shower heads. The measurements
are maximum flow rates (in gallons per minute) at pressure of 80 pounds per square inch. Use the data to
illustrate the difference between the two alternative definitions of "outlier," and make any other comments you
feel are relevant. Note: TrimMean removes the smallest 5 percent and the largest 5 percent of the values.

147. Briefly describe these data. Sketch its box plot and describe the sample succinctly.

Describe Craig's gasoline mileage based on this histogram of 195 tanks of gas.

Describe Craig's gasoline mileage based on this box plot of 195 tanks of gas.

150. Here are advertised prices of 21 used Chevy Blazers. Describe the distribution (center, variability, shape).

151. Briefly describe this sample of departure delays on American Airlines flights out of Denver over a seven-day
period, March 3-9 (n = 149 flights).

152. Six graduates from Fulsome University's Master's of Waste Management program were hired by a Saudi
Arabian firm at $110,000 each, while the other four graduates were unemployed. The university placement
office bragged, "Our MWM graduates enjoyed a median starting salary of $110,000." Is this a reasonable
assessment of central tendency? What are the alternatives?

Chapter 04 Descriptive Statistics Answer Key


1. A data set with two values that are tied for the highest number of occurrences is called bimodal.

TRUE
Bimodal means two modes.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Explain the concepts of center, variability, and shape.
Topic: Measures of Center

2. The midrange is not greatly affected by outliers.

FALSE
Extremes distort the midrange (average of highest and lowest data values).

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Calculate and interpret common measures of center.

3. The second quartile is the same as the median.

TRUE
The second quartile, the median, and the 50th percentile are the same thing.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-07 Calculate quartiles and other percentiles.
Topic: Percentiles, Quartiles, and Box Plots

4. A trimmed mean may be preferable to a mean when a data set has extreme values.

TRUE
Trimming diminishes the effect of outliers.

Blooms: Understand
Difficulty: 1 Easy

5. One benefit of the box plot is that it clearly displays the standard deviation.

FALSE
A box plot shows quartiles.

Blooms: Understand
Learning Objective: 04-08 Make and interpret box plots.

6. It is inappropriate to apply the Empirical Rule to a population that is right-skewed.

TRUE
The E.R. applies to normal populations.

Blooms: Apply
Learning Objective: 04-05 Apply the Empirical Rule and recognize outliers.
Topic: Standardized Data

7. Given the data set 10, 5, 2, 6, 3, 4, 20, the median value is 5.

TRUE
Sort and find middle value.

Blooms: Apply

8. Given the data set 2, 5, 10, 6, 3, the median value is 3.

FALSE
Sort and find middle value: 2 3 5 6 10.

Blooms: Apply

9. When data are right-skewed, we expect the median to be greater than the mean.

FALSE
It's the other way around, as the mean will be pulled up by extremes.

Blooms: Remember
Difficulty: 1 Easy

10. The sum of the deviations around the mean is always zero.

TRUE
The mean is the fulcrum (balancing point), so deviations must sum to zero.

Blooms: Remember

11. The midhinge is a robust measure of center when there are outliers.

TRUE
Outliers have little effect on the midhinge (average of the 25th and 75th percentiles).

Blooms: Understand

12. Chebyshev's Theorem says that at most 50 percent of the data lie within 2 standard deviations of the mean.

FALSE
At least 75 percent by Chebyshev.

Blooms: Apply
Learning Objective: 04-04 Apply Chebyshev's theorem.

13. Chebyshev's Theorem says that at least 95 percent of the data lie within 2 standard deviations of the mean.

FALSE
At least 75 percent by Chebyshev.

Blooms: Apply

14. If there are 19 data values, the median will have 10 values above it and 9 below it since n is odd.

FALSE
When n is odd, the median is the middle member of the sorted data set. In this case, the median is x10 and
there will be 9 below x10 (x1,..., x9) and 9 above x10 (x11,..., x19).

Blooms: Apply

15. If there are 20 data values, the median will be halfway between two data values.

TRUE
Median is between two data values when n is even.

Blooms: Apply

16. In a left-skewed distribution, we expect that the median will be greater than the mean.

TRUE
Mean is likely to be pulled down by low extremes.

Blooms: Understand
Difficulty: 1 Easy

17. If the standard deviations of two samples are the same, so are their coefficients of variation.

FALSE
The means may differ, which affects the C.V.

Blooms: Apply
Learning Objective: 04-03 Calculate and interpret common measures of variability.
Topic: Measures of Variability

18. A certain health maintenance organization (HMO) examined the number of office visits by its members in
the last year. This data set would probably be skewed to the left due to low outliers.

FALSE
Lower bound is zero, but high extremes are likely for sicker individuals.

Blooms: Evaluate
Difficulty: 3 Hard

19. A certain health maintenance organization (HMO) examined the number of office visits by its members in
the last year. For this data set, the mean is probably not a very good measure of a "typical" person's office
visits.

TRUE
Lower bound is zero, but high extremes are likely for sicker individuals.

Blooms: Evaluate
Difficulty: 3 Hard

20. Referring to this box plot of ice cream fat content, the median seems more "typical" of fat content than the
midrange as a measure of center.

TRUE
Midrange (average of low and high) will be pulled down by left-tail minimum.

Blooms: Apply

21. Referring to this box plot of ice cream fat content, the mean would exceed the median.

FALSE
Data are skewed left.

Blooms: Apply

22. Referring to this box plot of ice cream fat content, the skewness would be negative.

TRUE
Data are skewed left (negative skewness) as indicated by long left tail.

Blooms: Apply

23. Referring to this graph of ice cream fat content, the second quartile is about 61.

TRUE
Drop a line to lower axis to hit at 61.

Blooms: Apply

24. The range as a measure of variability is very sensitive to extreme data values.

TRUE
Range depends only on highest and lowest data values, so it is easily distorted.

Blooms: Understand
Difficulty: 1 Easy

25. In calculating the sample variance, the sum of the squared deviations around the mean is divided by n - 1 to
avoid underestimating the unknown population variance.

TRUE
Check the definition. You lose one piece of information because the mean is estimated.

Blooms: Understand

26. Outliers are data values that fall beyond ±2 standard deviations from the mean.

FALSE
Outliers are 3 standard deviations from the mean.

Blooms: Remember
Difficulty: 1 Easy

27. The Empirical Rule assumes that the distribution of data follows a normal curve.

TRUE
Unlike Chebyshev, the E.R. assumes a normal population.

Blooms: Remember
Difficulty: 1 Easy

28. The Empirical Rule can be applied to any distribution, unlike Chebyshev's theorem.

FALSE
The E.R. assumes a normal population, while Chebyshev applies to any population.

Blooms: Understand

29. When applying the Empirical Rule to a distribution of grades, if a student scored one standard deviation
below the mean, then she would be at the 25th percentile of the distribution.

FALSE
About 15.87 percent (not 25 percent) are less than one standard deviation below the mean (in a normal
distribution).

Blooms: Apply

30. Kurtosis cannot be judged accurately by looking at a histogram.

TRUE
Histograms are affected by scaling, so peakedness is hard to judge.

Blooms: Apply
Learning Objective: 04-11 Assess skewness and kurtosis in a sample.
Topic: Skewness and Kurtosis

31. A platykurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

FALSE
Platykurtic is flatter than a normal distribution (thicker tails).

Blooms: Remember

32. A leptokurtic distribution is more sharply peaked (i.e., thinner tails) than a normal distribution.

TRUE
Leptokurtic is more sharply peaked and has thinner tails.

Blooms: Remember

33. A positive kurtosis coefficient in Excel indicates a leptokurtic condition in a distribution.

TRUE
The sign of Excel's kurtosis coefficient indicates the kurtosis direction relative to a normal distribution.

Blooms: Remember

34. A sample consists of the following data: 7, 11, 12, 18, 20, 22, 43. Using the "three standard deviation"
criterion, the last observation (X = 43) would be considered an outlier.

FALSE
43 is not more than three standard deviations above the mean for this data set.

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-06 Transform a data set into standardized values.


35. The coefficient of variation is

A. measured on a scale from 0 to 100.

B. a unit-free statistic.
C. helpful when the sample means are zero.
D. a measure of correlation for two variables.
The C.V. is unit free. It is the standard deviation as a percentage of the mean.

Blooms: Remember
Difficulty: 1 Easy

36. Which is not an advantage of the method of medians to find Q1 and Q3?

A. Ease of interpolating quartile positions

B. Ease of application in small data sets
C. Intuitive definitions without complex formulas
D. Same method as Excel's =QUARTILE.EXC function.
When the quartiles lie between two data values, the method of medians goes halfway between the values
(very simple), while Excel interpolates between them in a more complex way.

Blooms: Understand

37. Which is a characteristic of the mean as a measure of center?

A. Deviations do not sum to zero when there are extreme values.
B. It is less reliable than the mode when the data are continuous.
C. It utilizes all the information in a sample.
D. It is usually equal to the median in business data.
The mean utilizes all n data values. Deviations always sum to zero around the mean. The mean works for
continuous data (unlike the mode). The mean often differs from the median in business data.

Blooms: Understand

38. The position of the median is:

A. n/2 in any sample.

B. n/2 if n is even.
C. n/2 if n is odd.
D. (n + 1)/2 in any sample.
This formula always works for the median position. For example, if n = 10 (even) the median is at position
(10 + 1)/2 = 5.5, or halfway between x5 and x6. But if n = 11 (odd) the median is at position (11 + 1)/2 = 6,
which is observation x6.

Blooms: Apply
Difficulty: 3 Hard

39. Which is a characteristic of the trimmed mean as a measure of center?

A. It is similar to the mean if there are offsetting high and low extremes.
B. It is especially helpful in a small sample.
C. It does not require sorting the sample.
D. It is basically the same as the midrange.
After sorting, we can trim unusual values to stabilize the mean.

Blooms: Understand

40. Which is not a characteristic of the geometric mean as a measure of center?

A. It is similar to the mean if the data are skewed right.

B. It mitigates the effects of large data values.
C. It is useful in business data to calculate average growth rates.
D. It cannot be calculated when the data contain negative or zero values.
Although both the mean and the geometric mean are affected by high extremes in skewed data, the
geometric mean tends to reduce their influence.

Blooms: Understand

41. Which is not a characteristic of the standard deviation?

A. It is always the square root of the variance.

B. It is not applicable when data are continuous.
C. It can be calculated when the data contain negative or zero values.
D. Its physical interpretation is not as easy as the MAD.
The standard deviation applies to any data measured on a ratio or interval scale. Because it is a square root,
its visual interpretation may be less clear than the MAD.

Blooms: Remember

42. Chebyshev's Theorem:

A. applies to all samples.

B. applies only to samples from a normal population.
C. gives a narrower range of predictions than the Empirical Rule.
D. is based on Sturges' Rule for data classification.
The strength of Chebyshev's Theorem is that it makes no assumption about normality, while the E.R. only
works for normal populations.

Blooms: Remember

43. Which of the following is not a valid description of an outlier?

A. A data value beyond the outer fences

B. A data value that is very unusual
C. A data value that lies below Q1 or above Q3
D. A data value several standard deviations from the mean.
Data values outside the quartiles (top or bottom 25 percent) are not very unusual.

Blooms: Apply

44. If samples are from a normal distribution with μ = 100 and σ = 10, we expect:

A. about 68 percent of the data within 90 to 110.

B. almost all the data within 80 to 120.
C. about 95 percent of the data within 70 to 130.
D. about half the data to exceed 75.
Review the Empirical Rule. The range 90 to 110 is the μ ± 1σ range.

Blooms: Apply

45. In a sample of 10,000 observations from a normal population, how many would you expect to lie beyond
three standard deviations of the mean?

A. None of them

B. About 27
C. About 100
D. About 127
Within μ ± 3σ we would expect 99.73 percent of 10,000, or 9,973 data values.

Blooms: Apply

46. The Excel formula for the standard deviation of a sample array named Data is:

A. =STDEV.S(Data).
B. =STANDEV(Data).
C. =STDEV.P(Data).
D. =SUM(Data)/(COUNT(Data)-1).
STDEV.S(Data) denotes a sample standard deviation.

AACSB: Technology
Blooms: Remember

47. Which is not true of an outlier?

A. It is likely to be from a different population.

B. It suggests an error in recording the data.
C. It is best discarded to get a better mean.
D. It is an anomaly that may tell the researcher something.
We are reluctant to delete outliers, as they may tell us something important.

Blooms: Understand
Difficulty: 1 Easy

48. Estimating the mean from grouped data will tend to be most accurate when:

A. observations are distributed uniformly within classes.

B. there are few classes with wide class limits.
C. the sample is not very large and bins are wide.
D. the standard deviation is large relative to the mean.
Many bins and uniform data distribution within bins would give a result closest to the ungrouped mean μ.

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 04-10 Calculate the mean and standard deviation from grouped data.
Topic: Grouped Data

49. Which is true of the kurtosis of a distribution?

A. A distribution that is flatter than a normal distribution (i.e., thicker tails) is mesokurtic.
B. A distribution that is more peaked than a normal distribution (i.e., thinner tails) is platykurtic.
C. It is risky to assess kurtosis if the sample size is less than 50.
D. The expected range of the kurtosis coefficient increases as n increases.
Shape is hard to judge in small samples. The 50 is just a rule of thumb. Excel computes kurtosis for samples
of any size, but tables of critical values may not go down below 50.

Blooms: Apply
Difficulty: 3 Hard

50. Which is true of skewness?

A. In business data, positive skewness is unusual.

B. In a negatively skewed distribution, the mean is likely to exceed the median.
C. Skewness often is evidenced by one or more outliers.
D. The expected range of Excel's skewness coefficient increases as n increases.
Skewness due to extreme data values is common in business data. Right skewness is common, which
increases the mean relative to the median.

Blooms: Apply
Difficulty: 3 Hard

51. Which is not true of the Empirical Rule?

A. It applies to any distribution.

B. It can be applied to fewer distributions than Chebyshev's Theorem.
C. It assumes that the distribution of data follows a bell-shaped, normal curve.
D. It predicts more observations within μ ± kσ than Chebyshev's Theorem.
The E.R. applies only to normal populations, while Chebyshev's Theorem is general.

Blooms: Understand

52. Which is a correct statement concerning the median?

A. In a left-skewed distribution, we expect that the median will exceed the mean.
B. The sum of the deviations around the median is zero.
C. The median is an observed data value in any data set.
D. The median is halfway between Q1 and Q3 on a box plot.
The mean is pulled down in left-skewed data, but deviations around it sum to zero in any data set. The
median may be between two data values and may not be in the middle of the box plot.

Blooms: Apply

53. Which statement is true?

A. With nominal data we can find the mode.

B. Outliers distort the mean but not the standard deviation.
C. Business and economic data are rarely skewed to the right.
D. If we sample a normal population, the sample skewness coefficient is exactly 0.
The mode works well for nominal data.

Blooms: Understand

54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this data set, which
statement is incorrect concerning measures of center?

A. The median is 60.00.

C. The 5 percent trimmed mean would be awkward.
D. The geometric mean is 35.05.
To find the geometric mean, multiply the data values and take the 11th root to get G = 41.02. Outliers affect
both the mean and the standard deviation. There are multiple modes in this example.

Blooms: Apply
Difficulty: 3 Hard

55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data set, which statement
is incorrect concerning measures of center?

A. The median is 70.

C. The geometric mean is useless.
D. The mean is 70.
The median is 75 (halfway between x5 = 70 and x6 = 80 in the sorted array). The zeros render the geometric
mean useless. The modes in this case are not unique.

Blooms: Apply
Difficulty: 3 Hard

56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which statement is
incorrect?

A. The standard deviation is 29.61.

B. The data are slightly left-skewed.
C. The midrange and mean are almost the same.
D. The third quartile is 90.
The midrange is (0 + 100)/2 = 50, while the mean is 69.

Blooms: Apply

57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm and the mean weight is
84 kg with a standard deviation of 8 kg. Elmer is 170 cm tall and weighs 70 kg. It is most nearly correct to
say that:

A. Elmer's weight is more unusual than his height.

B. Elmer is heavier than he is tall.
C. Height and weight have the same degree of variation.
D. Height has more variation than weight.
Convert Elmer's height and weight to z-scores. For Elmer's weight, z = (x - μ)/σ = (70 - 84)/8 = -1.75, while
for Elmer's height, z = (x - μ)/σ = (170 - 178)/8 = -1.00. Therefore, Elmer is farther from the mean weight
than from the mean height.

Blooms: Apply
Difficulty: 3 Hard

58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences, which is correct?

A. John is an extreme outlier.

C. John is not an outlier.
The upper inner fence is 60 + 1.5(60 - 40) = 90 so John is not an outlier.

Blooms: Apply

59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences, which is correct?

A. John is unusual but not an outlier.

C. John is neither unusual nor an outlier.
The lower inner fence is 70 - 1.5(80 - 70) = 55 so John is an outlier. Actually, John is an extreme outlier
because the lower outer fence is 70 - 3.0(80 - 70) = 40.

Blooms: Apply
Difficulty: 3 Hard

60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population variance is:

A. 6.07.
B. 36.82.
C. 5.16.
D. 22.86.
Use the population formula or Excel's =VAR.P(Data).

Blooms: Apply

61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median are:

A. 69 and 17.5.

B. 66 and 17.5.
C. 66 and 17.
D. 69 and 17.
Range = xmax - xmin = 69 - 3 = 66. Median is halfway between 17 and 17.

Blooms: Apply

62. When a sample has an odd number of observations, the median is the:

A. observation in the center of the data array.

B. average of the two observations in the center of the data array.
C. value of the most frequent observation.
D. average of Q1 and Q3.
Median position is always (n + 1)/2. It need not be halfway between the quartiles.

Blooms: Remember
Difficulty: 1 Easy

63. As a measure of variability, compared to the range, an advantage of the standard deviation is:

A. being calculated easily through the use of a formula.

B. considering only the data values in the middle of the data array.
C. describing the distance between the highest and lowest values.
D. considering all data values.
The range is easy to calculate but utilizes only two data values, which may be unusual.

Blooms: Remember

64. Which two statistics offer robust measures of center when outliers are present?

A. Mean and mode.

B. Median and trimmed mean.
C. Midrange and geometric mean.
D. Variance and standard deviation.
Extremes are excluded from the trimmed mean and do not affect the median.

Blooms: Remember
Difficulty: 1 Easy

65. Which Excel function is designed to calculate z = (x - μ)/σ for a column of data?

A. =STANDARDIZE
B. =NORM.DIST
C. =STDEV.P
D. =AVEDE
V
You need the sample mean and sample standard deviation to find the z-score.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy

66. Which Excel function would be least useful to calculate the quartiles for a column of data?

A. =STANDARDIZE
B. =PERCENTILE.EXC
C. =QUARTILE.EXC
D. =RAN
K
Check Appendix J for function definitions.

AACSB: Technology
Blooms: Remember

67. A sample of 50 breakfast customers of McDonald's showed the spending below. Which statement is least
likely to be correct?

A. The median is very close to the midhinge.

B. The median purchase is slightly less than $5.
C. About 75 percent of the customers spend less than $7.
D. The mean is a reasonable measure of center.
Outliers and right-skewness would affect the mean.

Blooms: Evaluate
Difficulty: 3 Hard

68. VenalCo Market Research surveyed 50 individuals who recently purchased a certain CD, revealing the age
distribution shown below. Which statement is least defensible?

A. The mean age probably exceeds the median age.

B. The mode would be a reasonable measure of center.
C. The data are somewhat skewed to the left.
D. The CD is unlikely to appeal to retirees.
The mean would be lower than the median due to left-skewness.

Blooms: Evaluate
Difficulty: 3 Hard

69. Given a sample of three items (X = 4, 6, 5), which statement is incorrect?

A. The geometric mean is 5.2.

B. The standard deviation is 1.
C. The coefficient of variation is 20 percent.
D. The quartiles are useless.
Multiply and take the 3rd root to get the geometric mean of 4.932. With only three data values, the quartiles
cannot be calculated (we can't divide three items into four groups).

Blooms: Apply
Difficulty: 1 Easy

70. A sample of customers from Barnsboro National Bank shows an average account balance of $315 with a
standard deviation of $87. A sample of customers from Wellington Savings and Loan shows an average
account balance of $8350 with a standard deviation of $1800. Which statement about account balances is
correct?

A. Barnsboro Bank has more variation.

B. Wellington S&L has more variation.
C. Both have the same variation.
Calculate the coefficient of variation for each bank. For Barnsboro, CV = 100 × s/ = 100 × 87/315 = 27.62,
while for Wellington CV = 100 × s/ = 100 × 1800/8350 = 21.56.

Blooms: Apply
Difficulty: 1 Easy

71. Histograms are best used to:

A. provide a visual estimate of the standard deviation.

B. show the quartiles of the data set.
C. assess the shape of the distribution.
D. reveal the interquartile range of the data set.
A histogram does not show quartiles or standard deviation.

Blooms: Remember
Difficulty: 1 Easy

72. The ______________ shows the relationship between two variables.

A. box plot

B. bar chart
C. histogram
D. scatter plot
The X-Y scatter plot measures association in a visual way.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-09 Calculate and interpret a correlation coefficient and covariance.
Topic: Correlation and Covariance

73. If the mean and median of a population are the same, then its distribution is:

A. normal.
B. skewed.
C. symmetric.
D. uniform.
Symmetry exists in normal or uniform populations.

Blooms: Remember

74. In the following data set {7, 5, 0, 2, 7, 15, 5, 2, 7, 18, 7, 3, 0}, the value 7 is:

A. the mean.

B. the mode.
C. both the mode and median.
D. both the mean and mode.
The value 7 occurs four times. The median is 5. The mean is 6.

Blooms: Apply
Difficulty: 1 Easy
Topic: Measures 3of Center

75. The median of 600, 800, 1000, 1200 is:

A. 800.
B. 1000.
C. 900.
D. 950.
Median is halfway between 800 and 1000.

Blooms: Apply
Difficulty: 1 Easy

76. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes. The
interquartile range is:

A. 12 minutes.
B. 16 minutes.
C. 22 minutes.
D. impossible to determine without knowing n.
The IQR is 31 - 19 = 12.

Blooms: Apply

77. The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes.
Which is incorrect regarding the fences?


C. A waiting time of 45 minutes exceeds the upper inner fence.
D. A waiting time of 70 minutes would be an outlier.
Apply definitions of fences. For example, the upper inner fence is 31 + 1.5(31 - 19) = 49.

Blooms: Apply
Difficulty: 3 Hard

78. When using Chebyshev's Theorem, the minimum percentage of sample observations that will fall within
two standard deviations of the mean will be __________ the percentage within two standard deviations if a
normal distribution is assumed (Empirical Rule).

A. smaller than

B. greater than
C. the same as
Chebyshev guarantees fewer observations within two standard deviations than the E.R.

Blooms: Apply

79. Which distribution is least likely to be skewed to the right by high values?

A. Annual incomes of n passengers on a flight from New York to London

B. Weekend gambling losses of n customers at a major casino
C. Accident damage losses by n renters of an auto rental company
D. Cost of a plain McDonald's hamburger in n U.S. cities
A few high values would skew the data badly in all but the hamburger example, because a McDonald's
hamburger is a standard menu item.

Blooms: Analyze
Difficulty: 3 Hard

80. Based on daily measurements, Bob's weight has a mean of 200 pounds with a standard deviation of 16
pounds, while Mary's weight has a mean of 125 pounds with a standard deviation of 15 pounds. Who has
the smaller relative variation?

A. Bob
B. Mary
Calculate the coefficients of variation for Bob and Mary. Bob's CV = 100 × s/ = 100 × 16/200 = 8.00,
while Mary's CV = 100 × s/ = 100 × 15/125 = 12.00. Therefore, Bob's weight varies less than Mary's
weight in relative terms.

Blooms: Apply

81. Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches with a
standard deviation of 2.5 inches and a mean weight of 125 pounds with a standard deviation of 10 pounds.
In relative terms, it is correct to say that:

A. Frieda is taller and thinner than women in her age group.
B. for this group of women, weight has greater variation than height.
C. Frieda's height is more unusual than her weight.
D. the variation coefficient exceeds 10 percent for both height and weight.
Calculate the z-scores for Frieda's weight and Frieda's height. For Frieda's height, z = (x - μ)/σ = (67 -
65)/(2.5) = 0.80, while for Frieda's weight, z = (x - μ)/σ = (135 - 125)/10 = 1.00. Therefore, Frieda's weight
is farther from the mean than her height. For heights, the CV = 100 × σ/μ = 100 × (2.5)/(65) = 3.8%, while
for weights, CV = 100 × σ/μ = 100 × 10/125 = 8.0% (both CVs are below 10%).

Blooms: Apply
Difficulty: 3 Hard


A. The coefficient of variation cannot be used when the mean is zero.
B. The standard deviation is in the same units as the mean (e.g., kilograms).
C. The mean from a frequency tabulation may differ from the mean from raw data.
D. The skewness coefficient is zero in a sample from any normal distribution.
Normal populations are symmetric, but a sample may differ from the population.

Blooms: Apply

83. The values of xmin and xmax can be inferred accurately except in a:

A. box plot.

B. dot plot.
C. histogram.
D. scatter plot.
The bin limits in a histogram may be rounded, so the values of xmin and xmax may be unclear.

Blooms: Understand

84. Which of the following statements is likely to be true?

A. The median personal income of California taxpayers would probably be near the mean.
B. The interquartile range offers a measure of income inequality among California residents.
C. For income, the sum of squared deviations about the mean is negative about half the time.
D. For personal incomes in California, outliers in either tail would be equally likely.
Incomes are likely to be skewed due to high extremes, while income is bounded on the low end by zero. A
wider IQR would suggest greater inequality of incomes.

Blooms: Analyze
Difficulty: 3 Hard

85. Which statistics offer robust (resistant to outliers) measures of center?

A. Mean, midrange, mode.

B. Median, midhinge, trimmed mean.
C. Trimmed mean, midrange, midhinge.
D. Mean, mode, quartiles.
Any measure of center using the mean is subject to the influence of outliers.

Blooms: Remember

86. The Empirical Rule says that:

A. most business data sets are normally distributed.

B. outliers are within three standard deviations of the mean.
C. in most business data we expect the mean and median to be similar.
D. about 32 percent of the data are beyond one standard deviation from the mean.
The E.R. says that about 68 percent of the observations are within one standard deviation of the mean.
Business data often are skewed.

Blooms: Understand

87. Three randomly chosen Seattle students were asked how many round trips they made to Canada last year.
Their replies were 3, 4, 5. The geometric mean is:

A. 3.877.
B. 4.000.
C. 3.915.
D. 4.422.
Multiply the three numbers and take the 3rd root of 60 to get 3.915.

Blooms: Apply

88. Three randomly chosen California students were asked how many times they drove to Mexico last year.
Their replies were 4, 5, 6. The geometric mean is:

A. 3.87.
B. 5.00.
C. 5.42.
D. 4.93.
Multiply the three numbers and take the 3rd root of 120 to get 4.932.

Blooms: Apply

Their replies were 5, 6, 7. The standard deviation is:

A. 1.212.
B. 0.816.
C. 1.000.
D. 1.056.
Use the sample formula or Excel's =STDEV.S(Data).

Blooms: Apply

90. Patient survival times after a certain type of surgery have a very right-skewed distribution due to a few high
outliers. Consequently, which statement is most likely to be correct?

A. Median > Midrange

B. Mean < Median
C. Mean > Midrange
D. Mean > Trimmed Mean
Mean is pulled up by high outliers.

Blooms: Evaluate

91. So far this year, stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while
stock B has had a mean price of $10.57 per share with a standard deviation of $3.02. Which stock is more
volatile?

A. Stock A
B. Stock B
Calculate the coefficient of variation.

Blooms: Apply

92. Outliers are indicated using fences on a

A. box plot.

B. dot plot.
C. histogram.
D. Pareto chart.
On a boxplot, outliers are identified by their distance from the median. Data values outside the inner fences
(median ± 1.5 IQR) are outliers. Data values beyond the outer fences (median ± 3.0 IQR) are extreme
outliers. This definition of "outlier" is not the same as the Empirical Rule, which is based on the distance
from the mean.

Blooms: Remember
Difficulty: 1 Easy



B. Range
C. Coefficient of variation
D. Trimmed mean
The trimmed mean is a measure of center.

Blooms: Remember
Difficulty: 1 Easy

94. Twelve randomly chosen students were asked how many times they had missed class during a certain
semester, with this result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The geometric mean is:

A.
B. 2.604
C. 1.517
D.
Take the 12th root of the product (97,200) to get 2.604.

Blooms: Apply
Difficulty: 3 Hard

semester, with this result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The median is:

A. 7.0.
B. 3.0.
C. 3.5.
D. 2.5.
Sort and go halfway between the two middle data values.

Blooms: Apply

96. One disadvantage of the range is that:

A. only extreme values are used in its calculation.

B. it is expressed in different units than the mean.
C. it does not exist for some data sets.
D. it is undefined if any X values are 0 or negative.
Range ignores all but the extremes.

Blooms: Remember

97. Which is a characteristic of the standard deviation?

A. It is not greatly affected by outliers.

B. It is measured in the same units as the mean.
C. It measures dispersion around the median.
D. It has a natural, concrete meaning.
Although we square the deviations around the mean, we take the square root of the sum to get back to the
original units of X. However, the standard deviation is affected by outliers and its interpretation may be
nonintuitive.

Blooms: Remember

semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the geometric mean is:

A. 2.158.
B. 1.545.
C. 2.376.
D. 3.017.
Take the 12th root of the product (32,400) to get 2.376.

Blooms: Apply
Difficulty: 3 Hard

semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is:

A. 2.
B. 3.
C. 3.5.
D. 2.5.
Sort and look halfway between the two middle data values.

Blooms: Apply

semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which measure of center is least
representative of the "typical" student?

A. Mean
B. Median
C. Mode
D. Midrange
The unusual data value pulls up the mean (3.75) but affects the midrange (1 + 18)/2 = 9.5 even more
noticeably.

Blooms: Apply

101. Here are statistics on order sizes of Megalith Construction Supply's shipments of two kinds of construction
materials last year.

Which order sizes have greater variability?

A. Girders
B. Rivets
D. Cannot be determined without knowing n
Calculate the coefficient of variation. For girders, the CV = 100 × s/ = 100 × (48)/(160) = 30.00%, while
for rivets, CV = 100 × s/ = 100 × 702/2800 = 25.07.

Blooms: Apply

102. The quartiles of a distribution are most clearly revealed in which display?

A. Box plot

B. Scatter plot
C. Histogram
D. Dot plot
The histogram, scatter plot, or dot plot will not directly show quartiles.

Blooms: Remember
Difficulty: 1 Easy

103. The sum of the deviations around the mean is:

A. greater than zero if data are right-skewed.

B. smaller when the units are smaller (e.g., milligrams versus kilograms).
C. always zero.
D. dependent on the sample size.
Sum must be zero unless you calculated the mean incorrectly.

Blooms: Understand

104. What does the graph below (profit/sales ratios for 25 Fortune 500 companies) reveal?

A. That the median exceeds the mean.

B. That the data are slightly left-skewed.
C. That the interquartile range is about 8.
D. That the distribution is bell-shaped.
Box is skewed right, so mean probably exceeds the median. The IQR is about 12 - 4 = 8.

Blooms: Analyze

105. Find the sample correlation coefficient for the following data.

A. .8911
B. .9132
C. .9822
D. .9556
You could use Excel's =CORREL(XData,YData).

Blooms: Apply

106. Heights of male students in a certain statistics class range from Xmin = 61 to Xmax = 79. Applying the
Empirical Rule, a reasonable estimate of σ would be:

A. 2.75.
B. 3.00.
C. 3.25.
D. 3.50.
One-sixth of the presumed 6σ range would be (79 - 61)/6 = 3.

Blooms: Apply

107. A reporter for the campus paper asked five randomly chosen students how many occupants, including the
driver, ride to school in their cars. The responses were 1, 1, 1, 1, 6. The coefficient of variation is:

A. 25 percent.
B. 250 percent.
C. 112 percent.
D. 100 percent.
You first have to calculate the mean and standard deviation.

Blooms: Apply

108. A smooth distribution with one mode is negatively skewed (skewed to the left). The median of the
distribution is $65. Which of the following is a reasonable value for the distribution mean?

A. $76
B. $54
C. $81
D. $65
Mean is expected to be less than the median due to left-skewness.

Blooms: Understand
Difficulty: 1 Easy

109. In a positively skewed distribution, the percentage of observations that fall below the median is:

A. about 50 percent.

B. less than 50 percent.
C. more than 50 percent.
D. can't tell without knowing n.
Median always puts about half above and half below.

Blooms: Remember

110. Which is a weakness of the mode?

A. It does not apply to qualitative data.

B. It is inappropriate for continuous data.
C. It is hard to calculate when n is small.
D. It is usually about the same as the median.
Mode is helpful for categorical data and is easy to calculate in small samples, but requires sorting the
sample. Continuous (decimal) data generally have no mode, or, if a mode exists, it is often not near the
center.

Blooms: Apply

111. The mode is least appropriate for:

A. continuous data.

B. categorical data.
C. discrete data.
D. Likert scale data.
Mode is good for discrete or categorical data but fails for continuous data.

Blooms: Remember

truck. This box plot of Craig's MPG on 195 tanks of gas does not support which statement?

A. There are several outliers.

B. This is a very right-skewed distribution.
C. Most MPG values are concentrated in a narrow range.
D. The interquartile range is less than 2 MPG.
Narrow box. With outliers in both tails, it's unclear which way skewness would be.

Blooms: Apply

113. Estimate the mean exam score for the 50 students in Prof. Axolotl's class.

A. 59.2
B. 62.0
C. 63.5
D. 64.1
Apply the formulas for weighted average using interval midpoint multiplied by frequency.

Blooms: Apply
Topic: Grouped Data

114. A survey of salary increases received during a recent year by 44 working MBA students is shown. Find the
approximate mean percent raise.

A. 6.56
B. 6.74
C. 5.90
D. 6.39

Blooms: Apply
Topic: Grouped Data

115. The following frequency distribution shows the amount earned yesterday by employees of a large Las Vegas
casino. Estimate the mean daily earnings.

A. $112.50
B. $125.01
C. $105.47
D. $117.13

Blooms: Apply
Topic: Grouped Data

116. The following table is the frequency distribution of parking fees for a day:

The mean parking fee is:

A. $7.07.
B. $6.95.
C. $7.00.
D. $7.25.

Blooms: Apply
Topic: Grouped Data

117. Find the standard deviation of this sample: 4, 7, 9, 12, 15.

A. 4.550
B. 3.798
C. 4.278
D. 2.997
Use the sample formula or Excel's =STDEV.S(Data).

Blooms: Apply

118. The 25th percentile for waiting time in a doctor's office is 10 minutes. The 75th percentile is 30 minutes.
Which is incorrect regarding the fences?


C. A waiting time of 45 minutes would be an outlier.
D. The lower fences are not relevant in this problem.
Add 1.5 times the interquartile range to the third quartile to get the upper inner fence. Add 3.0 times the
interquartile range to the third quartile to get the upper outer fence. An outlier is beyond the inner upper
fence.

Blooms: Apply
Difficulty: 3 Hard

119. Five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home
sold for $2.5 million. Which measure of central tendency best represents a typical home price in Oxnard
Acres?

A. The mean or median.

B. The median or mode.
C. The mean or mode.
D. The midrange or mean.
Outliers will affect the mean or midrange.

Blooms: Apply

120. In Tokyo, construction workers earn an average of ×420,000 (yen) per month with a standard deviation of
×20,000, while in Hamburg, Germany, construction workers earn an average of €3,200 (euros) per month
with a standard deviation of €57. Who is earning relatively more, a worker making ×460,000 per month in
Tokyo or one earning €3,300 per month in Hamburg?

A. The workers are the same in relative terms.

B. The Tokyo worker is relatively better off.
C. The Hamburg worker is relatively better off.
Calculate and compare the z-score for each nation's workers. For Tokyo, z = (x - μ)/σ = (460000 -
420000)/(20000) = 2.00, while for Hamburg, z = (x - μ)/σ = (3300 - 3200)/57 = 1.75. Therefore, wages for
this worker are higher in Tokyo.

Blooms: Apply

121. Which statement is false? Explain.

A. If μ = 52 and σ = 15, then X = 81 would be an outlier.

B. If the data are from a normal population, about 68 percent of the values will be within μ ± σ.
C. If μ = 640 and σ = 128, then the coefficient of variation is 20 percent.
Calculate the z-score to detect outliers: z = (x - μ)/σ = (81 - 52)/(15) = 1.93, which is not an outlier, while the
CV is 100 × σ/μ = 100 × 128/640 = 20%.

Blooms: Apply



B. Standard deviation
C. Midhinge
D. Interquartile range
The midhinge measures center, not variability.

Blooms: Remember

123. If Q1 = 150 and Q3 = 250, the upper fences (inner and outer) are:

A. 450 and 600.

B. 350 and 450.
C. 400 and 550.
D. impossible to determine without more information.
Add 1.5 times the interquartile range to the third quartile to get the upper inner fence. Add 3.0 times the
interquartile range to the third quartile to get the upper outer fence.

Blooms: Apply

124. Variables X and Y have the strongest correlation in which scatter plot?

A. Figure A.
B. Figure B.
C. They are about the same.
Except for sign, the correlations appear roughly the same.

Blooms: Understand
Difficulty: 1 Easy

125. Which of the following statements is likely to apply to the incomes of 50 randomly chosen taxpayers in
California?

A. The median income would probably be near the mean.

B. The midhinge would be a robust measure of center.
C. The sum of squared deviations about the mean would be negative.
D. Outliers in either tail would be equally likely.
Data will be extremely skewed by a few very rich taxpayers.

Blooms: Evaluate
Difficulty: 3 Hard

126. A certain health maintenance organization (HMO) examined the number of office visits by each of its
members in the last year. For this data set, we would anticipate that the geometric mean would be

A. a reasonable measure of center.

B. zero because some HMO members would not have an office visit.
C. too high because the distribution is likely to be skewed to the left.
D. negative because some data values would be below the mean.
Zeros would exist for those who had no office visits, so the geometric mean would be zero.

Blooms: Evaluate
Difficulty: 3 Hard

Their replies were 5, 6, 7. The coefficient of variation is:

A. 16.7 percent.

B. 13.6 percent.
C. 20.0 percent.
D. 35.7 percent.
Calculate mean and standard deviation first.

Blooms: Apply

128. The mean of a population is 50 and the median is 40. Which histogram is most likely for samples from this
population?

A. Sample A.
B. Sample B.
C. Sample C.
Mean exceeds median so skewed right.

Blooms: Apply
Difficulty: 1 Easy

129. If Excel's sample skewness coefficient is positive, we conclude that

A. the population is skewed to the right, if the sample size is small.
B. the population is symmetric, as long as the sample size is very large.
We have tables that show the expected range of expected variation for a sample skewness coefficient for
various sample sizes from a symmetric, normal population.

Blooms: Apply

130. If Excel's sample kurtosis coefficient is negative, we conclude that

A. the population is platykurtic, as long as the sample size is small.

B. the population is leptokurtic, as long as the sample size is large.
We have tables that show the expected range of expected variation for a sample kurtosis coefficient for
various sample sizes from a normal population.

Blooms: Apply


131. In Osaka, Japan, stock brokers earn ×6000 per hour on the average, with a standard deviation of ×1200. In
Stuttgart, Germany, stock brokers earn an average of €18 per hour with a standard deviation of €6. In which
country is the variation in wages greatest?

Osaka CV = 25 percent, Stuttgart CV = 33.3 percent, so variation is greater in Stuttgart.
Feedback: Osaka CV = 20 percent, Stuttgart CV = 33.3 percent, so variation is greater in Stuttgart. The
point is to show that you cannot assess relative variation based solely on the standard deviation when the
units of measurement differ. (You have to look also at the mean.)

Blooms: Apply
Difficulty: 1 Easy

132. Find the coefficient of variation of these numbers: 14, 17, 17, 19, 26. Would the variability of those numbers
be greater than, less than, or the same as the variability of 24, 27, 27, 29, 36? Defend your answer.

Relative variation is greater in the first sample.
Feedback: First sample: mean = 8.6, standard deviation = 4.5055, CV = 24.25 percent. Second sample:
mean = 28.6, standard deviation = 4.5055, CV = 15.75 percent. The standard deviations are the same, but
the relative variation is greater in the first sample because the mean is smaller.

Blooms: Apply

133. Ten randomly chosen students at a certain university were asked how many times they smoked marijuana
during the preceding week. Their answers were 0, 8, 0, 0, 2, 4, 0, 0, 6, 0. A campus newspaper article
appeared, with the headline "Average Student Uses No Pot." Is this a fair assessment of central tendency?
Discuss the alternatives.

Mode and median are 0, but the mean is 2. Geometric mean is zero due to zeros.
Feedback: Mode and median are 0, but the mean is 2. It is correct that 6 out of 10 students used no
marijuana, but to say that the "average" is zero ignores the four users who bring up the mean. The geometric
mean is useless since it is zero whenever the data set contains zero.

Blooms: Analyze
Difficulty: 3 Hard

134. Twelve students were asked how many credit cards they owned. The responses were 0, 0, 1, 2, 2, 3, 3, 4, 4,
5, 5, 11. (a) Find the mean, median, and mode. (b) Which measure of center seems best in this case? (c) Find
the first and third quartiles. What do they tell you?

(a) Mean is 3.33, median is 3, mode is not unique; (b) The mean is slightly influenced by the highest data
value, but is not greatly different than the median. (c) Quartiles depend on which method is used (e.g.,
Minitab gives 1.25 and 4.75).
Feedback: Mean is 3.33, median is 3. The mode is useless because 0, 2, 3, 4, and 5 each occur twice. In this
case the mean or median gives a reasonable indication of what is "typical." Using the method of medians, Q1
= 1.5 and Q3 = 4.5. The method of medians only requires sorting the data, finding the median, and then
finding the median of the observations below the median and the median of the observations above the
median. Excel and Minitab may use different methods of calculating quartiles. Excel's =QUARTILE.INC
would give 1.75 and 4.25; Minitab would give 1.25 and 4.75, while Excel's =QUARTILE.EXC will agree
with Minitab.

Blooms: Evaluate

135. Eleven students were asked how many siblings they had. The responses were 0, 1, 2, 2, 2, 2, 2, 3, 3, 4, 5.
Find the mean, median, mode, and geometric mean. Which would you prefer in this case, and why not the
others?

Mean is 2.364, median is 2, mode is 2.
Feedback: Mean is 2.364, median is 2, mode is 2. Any of these conveys a reasonable idea of the "typical"
student. The median is representative of the data, but a good case can also be made for the mode (5 of 10
students had 2 siblings). There are no outliers, so the mean is not badly distorted (but 7 are below it and 4
above it). Only the mean reflects the fact that an "average" family has more than two children. The
geometric mean is unhelpful because of the zero in the data set.

Blooms: Evaluate

136. Patient waiting times in the Tardis Orthopedic Clinic have a mean of 50 minutes with a standard deviation
of 25 minutes. Within what range would approximately 95 percent of the waiting times lie if we were
sampling a normal distribution? Do you think the distribution is likely to be normal? Explain.

By the Empirical Rule, range is 0 to 100 minutes, but waiting times may be skewed by a few long waits
(nonnormal).
Feedback: By the Empirical Rule, 50 ± (2)(25) gives a range of 0 to 100 minutes. However, the E.R.
assumes normality, which is unlikely for waiting times (probably right-skewed by a few unusually long
waits). The large standard deviation likely is due to outliers.

Blooms: Evaluate

137. The athletic departments at 10 randomly selected U.S. universities were asked by the Equal Employment
Opportunity Commission to state what percentage of their nursing scholarships were presently held by
women. The responses were 5, 4, 2, 1, 1, 2, 10, 5, 5, 5. Find the mean, median, mode, and geometric mean.
Which is the most appropriate measure of central tendency? The least appropriate? Explain your answer. Is
there an outlier?

Mean is 4, median is 4.5, mode is 5, geometric mean is 3.1623. The boxplot shows that 10 is an outlier but
not an extreme outlier (based on the fences criterion for outliers).
Feedback: Mean is 4, median is 4.5, mode is 5, geometric mean is 3.1623. For this data set, an argument can
be made for each of these measures of central tendency. The mean or median would probably be most
"typical," although the mode does represent 4 of the 10 observations. The geometric mean downplays the
outlier (10) but is not really "typical" of any university. The boxplot shows that 10 is an outlier but not an
extreme outlier (based on the fences criterion for outliers).

Blooms: Evaluate

138. A survey of 10 randomly chosen drivers showed the following number of persons per car, including the
driver: 1, 5, 1, 5, 2, 1, 1, 1, 2, 1. Describe the center, variability, and skewness for this sample.

Mean is 2, median is 1, mode is 1. Data are right-skewed.
Feedback: Mean is 2, median is 1, mode is 1. For this sample, the mode (6 of 10) most clearly characterizes
the "typical" car occupancy, which is also true of the median. However, only the mean would indicate that
more than one person is actually traveling, on average. The geometric mean is 1.585, which is not especially
helpful but does downplay the two 5's. Data are right-skewed.

Blooms: Evaluate
Topic: Numerical Description

139. A national survey showed that most commuter cars contain only the driver. Hungry for a story, a campus
newspaper reporter asked five randomly chosen commuter students how many occupants, including the
driver, rode to school in their cars. Their responses were 1, 1, 1, 1, and 6. The next day a story appeared in
the paper headlined "University Commuters Double National Average Ridership." Is this a reasonable
assessment of central tendency? How would you characterize the variability of the sample?

The mean is 2, median is 1, and mode is 1. Coefficient of variation (112 percent) indicates high dispersion
(standard deviation exceeds the mean).
Feedback: The mean is 2, median is 1, and mode is 1. While technically correct, the paper's story is
misleading since 80 percent of the cars contained only one occupant. Data are extremely right-skewed. The
standard deviation is 2.236, so the coefficient of variation (112 percent) indicates very high dispersion
(standard deviation exceeds the mean).

Blooms: Evaluate

140. A 10-point quiz was given by Professor Ennuyeaux. Of the 10 students in the class, half got zero and the
others got perfect scores. List the students' scores. Then find the mean, median, mode, and geometric mean
of their scores. Which is the most appropriate measure of center? The least appropriate?

Mean is 5, median is 5, bimodal (0, 10), geometric mean is 0.
Feedback: 0, 0, 0, 0, 0, 10, 10, 10, 10, 10. Mean is 5, median is 5, bimodal (0, 10). Geometric mean is zero
(useless due to zeros in the data set). There is no "typical" or correct description of central tendency since
there is no centrality in the data. In such cases, stick with the mean and median but add a verbal caveat about
the extremely bimodal nature of the data.

Blooms: Evaluate
Difficulty: 3 Hard

141. The owner of a chicken farm kept track of each hen's eating and egg production for many months, with the
results below. Which has more variation, feed consumption or egg output?

Feed CV = 14.3 percent, egg CV = 25.0 percent. Egg production is more variable.
Feedback: Feed CV = 14.3 percent, egg CV = 25.0 percent. Egg production is more variable. Problem
illustrates that when units of measurement or means differ, you cannot use the standard deviation to
compare variation.

Blooms: Apply
Difficulty: 1 Easy

142. Below are the ages of 21 CEOs. Find the mean, median, and mode. Are there any outliers? Explain.
46, 48, 49, 49, 50, 52, 54, 55, 57, 57, 58, 59, 60, 61, 62, 62, 63, 63, 65, 67, 75

Mean is 57.714, median is 58, four modes (49, 57, 62, 63). Standard deviation is s = 7.233. No outliers, but
there is one unusual data value at 75.
Feedback: Mean is 57.714, median is 58, four modes (49, 57, 62, 63). Standard deviation is s = 7.233. No
outliers, but there is one unusual data value at 75. Its standardized value is z = (75 - 57.714)/7.233 = 2.39.
Using the method of medians, Q1 = 51, Q2 = 58, Q3 = 62.5, students could also construct fences.

Blooms: Evaluate
Difficulty: 1 Easy

143. Bob's sample of freshman GPAs showed a mean of 2.72 with a standard deviation of 0.31. (a) What range
would you predict for all the grades? For the middle 95 percent? Explain. (b) Why might your estimates be
inaccurate?

By the Empirical Rule, we expect the middle 95 percent between μ - 2σ and μ + 2σ (2.10 and 3.34) and all
the GPAs between μ - 3σ and μ + 3σ (1.79 and 3.65). The E.R. is based on the normal distribution, so could
be inaccurate if grades are skewed.
Feedback: By the Empirical Rule, we expect the middle 95 percent between μ - 2σ and μ + 2σ (2.10 and
3.34) and all the GPAs between μ - 3σ and μ + 3σ (1.79 and 3.65). The E.R. is based on the normal
distribution, so could be inaccurate if grades are skewed. If there is skewness, it is more likely to be to the
left since many hard-working students will earn GPAs in the range 3.00 to 4.00, while very few will be
below 2.00 (but a few really poor performers could pull the mean down, since GPA could even be 0.00).

Blooms: Evaluate

144. A team of introductory statistics students went to a grocery store and recorded the total calories and fat
calories for various kinds of soup. They produced a table of statistics and two dot plots. Write a succinct
summary of the center, variability, and shape for each data set. Note: TrimMean is the 5 percent trimmed
mean (removing the smallest 5 percent and the largest 5 percent of the values, rounded to the nearest
integer).

Both are right-skewed (mean > median) though not greatly so, judging from the dot plots. Trimmed mean is
only slightly less than the mean, suggesting that we don't have too many extreme values. However, on the
Calories dot plot there is one outlier because z = (180 - 96.63)/26.91 = 3.10.
Feedback: Both are right-skewed (mean > median) though not greatly so, judging from the dot plots. In each
case, the trimmed mean is only slightly less than the mean, suggesting that we don't have too many extreme
values. However, on the Calories dot plot there is one extreme value, which turns out to be an outlier since
its standardized score is z = (180 - 96.63)/26.91 = 3.10. Better students will notice more details and aspects
of the data and discuss them.

Blooms: Evaluate

145. Here are descriptive statistics from Excel for annual per-pupil expenditures in 94 Ohio cities and home sizes
in a certain neighborhood. Very briefly compare the variability and shape of the two data sets.

Expenditure per pupil is right-skewed (mean > median), skewness coefficient is also high; home size is
practically symmetric (mean ≅ median) and has skewness near zero. Expenditure per pupil has at least one
severe outlier z = 7.76, while home size has no outliers but one unusual value at z = 2.71.
Feedback: Expenditure per pupil is right-skewed (mean > median), and the skewness coefficient is also
high. Home size is practically symmetric (mean ≅ median) and has skewness near zero, though many
students will say it's right-skewed. (It is important to realize that skewness is a matter of degree, not a "yes-
no" decision.) The modes are unhelpful since both data sets are continuous measurements. The CVs indicate
that expenditure per pupil has much greater dispersion (40.2 percent) than home size (11.2 percent).
Expenditure per pupil has at least one severe outlier at z = (11,226 - 2724.61/1095.22) = 7.76, while home
size has no outliers but one possibly unusual value at z = (2908 - 2231.41/249.32) = 2.71. Better student
answers will notice and discuss more of the data features, perhaps attempting to draw a histogram.

Blooms: Evaluate

146. Below are shown a dot plot and summary statistics for a random sample of 34 shower heads. The
measurements are maximum flow rates (in gallons per minute) at pressure of 80 pounds per square inch.
Use the data to illustrate the difference between the two alternative definitions of "outlier," and make any
other comments you feel are relevant. Note: TrimMean removes the smallest 5 percent and the largest 5
percent of the values.

Upper inner fence is 3.5, upper outer fence is 4.1, so by these definitions, three (maybe four) data points are
"unusual" (above the upper inner fence) and three are outliers (beyond the upper outer fence).
Feedback: Requires definitions of fences. The upper inner fence is Q3 + 1.5(Q3 - Q1) = 2.9 + 1.5(2.9 - 2.5) =
3.5, while the upper outer fence is Q3 + 3.0(Q3 - Q1) = 2.9 + 3.0(2.9 - 2.5) = 4.1. By these definitions, three
(maybe four) data points are "unusual" (above the upper inner fence) and three are outliers (beyond the
upper outer fence). Using the standardized variable definition, the cutoff for an "unusual" data point is
= 2.882 + 2(0.750) = 4.382 (which includes 3 data points), while the cutoff for an "outlier" is
= 2.882 + 3(0.750) = 5.132 (which includes 1 data point). Therefore, the definitions generally agree
on what is "unusual" but not on what constitutes an "outlier."

Blooms: Evaluate
Difficulty: 3 Hard

147. Briefly describe these data. Sketch its box plot and describe the sample succinctly.

Skewed right (mean > median), at least one outlier at z = 3.22, box plot will be skewed right and
asymmetric.
Feedback: Skewed right (mean > median) as reflected also in the trimmed mean (below the mean). There is
at least one outlier, whose standardized score is z = (49 - 12.89)/11.23 = 3.22. Box plot will be skewed right
(long right whisker) and has asymmetric "box" whose upper half (Q2 to Q3) is wider than its lower half (Q1
to Q2). The picture is that in most Rose Bowl games, the winning margin tends to be small, but in a few
games there was a "blowout" that raises the mean. Astute students may notice the 0 and ask how the
winning margin can be zero. (In 1922, Washington and Jefferson played California to a scoreless tie, this
being before the "sudden death" overtime had been established.)

Blooms: Evaluate

truck. Describe Craig's gasoline mileage based on this histogram of 195 tanks of gas.

Fairly symmetric, yet a few high values will draw up the mean.
Feedback: Fairly symmetric. A few high values exist (they could be outliers, but we would need standard
deviation or quartiles to say for sure). Astute students could apply the Empirical Rule to estimate σ = (XMax -
XMin)/6, or σ = (XMax - XMin)/4 and try to check for outliers, but this would not be expected. Some will suggest
that the data are normal but there were data measurements (e.g., three tanks erred on the high side, one on
the low side).

Blooms: Evaluate

truck. Describe Craig's gasoline mileage based on this box plot of 195 tanks of gas.

Range is from just under 9.0 to just over 21.0; typical gas mileage is concentrated near 13 mpg, with the
middle 50 percent between about 12.5 and 13.5 (middle of the "box"); two unusual data values on low end
and three on high end (beyond inner fences).
Feedback: Range is from just under 9.0 to just over 21.0. Typical gas mileage is concentrated near 13 mpg,
with the middle 50 percent between about 12.5 and 13.5 (middle of the "box"). Symmetric except for one
data point in right tail. Two unusual data values on low end and three on high end (beyond inner fences). On
the high end, two are outliers (beyond outer fence). Requires knowing definitions of fences.

Blooms: Evaluate

150. Here are advertised prices of 21 used Chevy Blazers. Describe the distribution (center, variability, shape).

Range is from 7,000 to almost 18,000; median is around 11,500; interquartile range is about 11,000 to
14,000, with right-skewness.
Feedback: Range is from 7,000 to almost 18,000. Median is around 11,500 with interquartile range about
11,000 to 14,000. Right-skewed, based on the extremely asymmetric box, but whiskers are roughly
symmetric. Mean would probably be well above the median, based on skewness. Requires knowing how to
read quartiles from a box plot.

Blooms: Evaluate

151. Briefly describe this sample of departure delays on American Airlines flights out of Denver over a seven-
day period, March 3-9 (n = 149 flights).

Short left whisker, skewed right. Most data are packed into a very narrow range, but there are 14 outliers
(above the upper fence) and 3 or 4 more above the inner fence.
Feedback: An early departure ("pushback after doors closed") can occur once a plane is fully loaded. In this
data set, flights departed up to 6 minutes early. The short left whisker and narrow box show that most data
values are packed into a very narrow range. The quartiles Q1, Q2, and Q3 are near -5 (i.e., flights typically
push back about 5 minutes early). Only 9 flights departed more than 20 minutes late. There are 14 outliers
(above the upper outer fence) and 3 or 4 more above the upper inner fence. Data are extremely right-
skewed. Factors such as weather can cause long departure delays, but for most flights an early or on-time
departure is the norm.

Blooms: Evaluate

152. Six graduates from Fulsome University's Master's of Waste Management program were hired by a Saudi
Arabian firm at $110,000 each, while the other four graduates were unemployed. The university placement
office bragged, "Our MWM graduates enjoyed a median starting salary of $110,000." Is this a reasonable
assessment of central tendency? What are the alternatives?

Can't use geometric mean due to zeros, but none of the measures is typical of anyone.
Feedback: The median and mode are 110, but the mean is only 66. We can't use geometric mean due to
zeros. Sample is small, so no measure is very reliable, but an honest placement service would note that 40
percent of the graduates were unemployed and that the salary was only for those who actually found jobs.

Blooms: Evaluate

Chapter 06
Discrete Probability Distributions


1. A random variable is a function or rule that assigns a numerical value to each outcome in the sample space of a
stochastic (chance) experiment.

True False

2. A discrete random variable has a countable number of distinct values.

True False

3. The expected value of a discrete random variable E(X) is the sum of all X values weighted by their respective
probabilities.

True False

4. A discrete distribution can be described by its probability density function (PDF) or by its cumulative
distribution function (CDF).

True False

5. A random variable may be discrete or continuous, but not both.

True False

6. To describe the number of blemishes per sheet of white bond paper, we would use a discrete uniform
distribution.

True False

7. The outcomes for the sum of two dice can be described as a discrete uniform distribution.

True False

8. A discrete binomial distribution is skewed right when π > .50.

True False

9. When π = .70 the discrete binomial distribution is negatively skewed.

True False

10. The Poisson distribution describes the number of occurrences within a randomly chosen unit of time or space.

True False

11. The Poisson distribution can be skewed either left or right, depending on λ.

True False

12. Although the shape of the Poisson distribution is positively skewed, it becomes more nearly symmetric as its
mean becomes larger.

True False

13. As a rule of thumb, the Poisson distribution can be used to approximate a binomial distribution when n ≥ 20 and
π ≤ .05.

True False

14. The hypergeometric distribution is skewed right.

True False

15. The hypergeometric distribution assumes that the probability of a success remains the same from one trial to the
next.

True False

16. The hypergeometric distribution is not applicable if sampling is done with replacement.

True False

17. As a rule of thumb, the binomial distribution can be used to approximate the hypergeometric distribution
whenever the population is at least 20 times as large as the sample.

True False

18. An example of a geometric random variable is the number of pine trees with pine beetle infestation in a random
sample of 15 pine trees in Colorado.

True False

19. Calculating the probability of getting three aces in a hand of five cards dealt from a deck of 52 cards would
require the use of a hypergeometric distribution.

True False

20. The Poisson distribution is appropriate to describe the number of babies born in a small hospital on a given
day.

True False

21. The gender (M, F) of a randomly chosen unborn child is a Bernoulli event.

True False

22. The Poisson distribution has only one parameter.

True False

23. The standard deviation of a Poisson random variable is the square root of its mean.

True False

24. Customer arrivals per unit of time would tend to follow a binomial distribution.

True False

25. The two outcomes (success, failure) in the Bernoulli model are equally likely.

True False

26. The expected value of a random variable is its mean.

True False


27. A discrete probability distribution:

A. is a listing of all possible values of the random variable.

B. assigns a probability to each possible value of the random variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.

28. The number of male babies in a sample of 10 randomly chosen babies is a:

A. continuous random variable.

B. Poisson random variable.
C. binary random variable.
D. binomial random variable.

29. A discrete random variable:

A. can be treated as continuous when it has a large range of values.

B. cannot be treated as continuous.
C. is best avoided if at all possible.
D. is usually uniformly distributed.

30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of plywood

B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam


A. The number of births in a hospital on a given day

B. The number of fives obtained in four rolls of a die
C. The hourly earnings of a call center employee in Boston
D. The number of applicants applying for a civil service job

32. Which statement is incorrect?

A. The Poisson distribution is always skewed right.

B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.

33. The random variable X is the number of shots it takes before you make the first free throw in basketball.
Assuming the probability of success (making a free throw) is constant from trial to trial, what type of
distribution does X follow?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

34. Which probability model is most nearly appropriate to describe the number of burned-out fluorescent tubes in a
classroom with 12 fluorescent tubes, assuming a constant probability of a burned-out tube?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas in a given year due to
poisonous snakebites?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

36. Which model would you use to describe the probability that a call-center operator will make the first sale on the
third call, assuming a constant probability of making a sale?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

37. In a randomly chosen week, which probability model would you use to describe the number of accidents at the
intersection of two streets?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

38. Which model best describes the number of nonworking web URLs ("This page cannot be displayed") you
encounter in a randomly chosen minute while surfing websites for Florida vacation rental condos?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

39. Which probability model would you use to describe the number of damaged printers in a random sample of 4
printers taken from a shipment of 28 printers that contains 3 damaged printers?

A. Poisson
B. Hypergeometric
C. Binomial
D. Uniform

40. Which model best describes the number of incorrect fare quotations by a well-trained airline ticket agent
between 2 p.m. and 3 p.m. on a particular Thursday?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

41. Which model best describes the number of blemishes per sheet of white bond paper?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a particular Thursday
afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are incorrect. In a random sample of 8 of these
customer calls, which model best describes the number of incorrect quotations Bob will make?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

43. The number of people injured in rafting expeditions on the Colorado River on a randomly chosen Thursday in
August is best described by which model?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free mule ride. Ten of the
entrants are European tourists. Five entrants are selected at random to get the free mule ride. Which model best
describes the number of European tourists in the random sample?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

45. Which model best describes the number of births in a hospital until the first twins are delivered?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

46. On a randomly chosen Wednesday, which probability model would you use to describe the number of
convenience store robberies in Los Angeles?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

47. Which probability model would you use to describe the number of customers served at a certain California
Pizza Kitchen until the first customer orders split pea soup?

A. Binomial
B. Geometric
C. Uniform
D. Poisson

48. Which distribution has a mean of 5?

A. Poisson with λ = 25
B. Binomial with n = 200, π = .05
C. Hypergeometric with N = 100, n = 10, s = 50

49. Of the following, the one that most resembles a Poisson random variable is the number of:

A. heads in 200 flips of a fair coin.

B. annual power failures at your residence.
C. face cards in a bridge hand of 13 cards.
D. defective CDs in a spool containing 15 CDs.

50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be selected at random. At
what ticket price would a ticket buyer expect to break even?

A. $0.50
B. $0.25
C. $0.75
D. $1.00

51. A die is rolled. If it rolls to a 1, 2, or 3, you win $2. If it rolls to a 4, 5, or 6, you lose $1. Calculate the expected
winnings.

A. $0.50
B. $3.00
C. $1.50
D. $1.00

52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6, you lose $1. Calculate the
expected winnings.

A. $0.00
B. $1.00
C. $0.50
D. $0.25

53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands tails you
lose $0.50. How much should a ticket to play this game cost if the carnival wants to break even?

A. $0.25
B. $0.50
C. $0.75
D. $1.00

54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are bidding for a
$900,000 government contract. Each company has an equal chance of being awarded the contract. If ESCO has
already spent $100,000 in developing its bidding proposal, what is its expected net profit?

A. $100,000
B. $90,000
C. -$10,000
D. $0

55. The discrete random variable X is the number of students that show up for Professor Smith's office hours on
Monday afternoons. The table below shows the probability distribution for X. What is the expected value E(X)
for this distribution?

A. 1.2
B. 1.0
C. 1.5
D. 2.0

Monday afternoons. The table below shows the probability distribution for X. What is the probability that at
least 1 student comes to office hours on any given Monday?

A. .30
B. .40
C. .50
D. .60

Monday afternoons. The table below shows the probability distribution for X. What is the probability that fewer
than 2 students come to office hours on any given Monday?

A. .10
B. .40
C. .70
D. .90

58. The discrete random variable X is the number of passengers waiting at a bus stop. The table below shows the
probability distribution for X. What is the expected value E(X) for this distribution?

A. 1.1
B. 1.3
C. 1.7
D. 1.9

59. Given the following probability distribution, what is the expected value of the random variable X?

A. 175
B. 150
C. 200
D. 205

60. Which of the following characterizes a Bernoulli process?

A. A random experiment that has only two outcomes.

B. The probability of "success" varies with each trial.
C. Either outcome has the same chance of occurrence.
D. The "success" must be a desirable outcome.

61. The binomial distribution describes the number of:

A. trials to obtain the first "success" in a Bernoulli process.

B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D. "successes" in n Bernoulli trials.

62. Which of the following is not a requirement of a binomial distribution?

A. Constant probability of success

B. Only two possible Bernoulli outcomes
C. Fixed number of trials
D. Equally likely outcomes

63. The binomial distribution is symmetrical when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

64. The variance will reach a maximum in a binomial distribution when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

65. Which distribution is most strongly right-skewed?

A. Binomial with n = 50, π = .70

C. Binomial with n = 50, π = .40
D. Binomial with n = 50, π = .10

66. A random variable is binomially distributed with n = 16 and π = .40. The expected value and standard deviation
of the variables are:

A. 2.00 and 1.24

B. 4.80 and 4.00
C. 6.40 and 1.96
D. 2.00 and 1.20

67. The expected value (mean) of a binomial variable is 15. The number of trials is 20. The probability of "success"
is:

A. .25
B. .50
C. .75
D. .30

68. If 90 percent of automobiles in Orange County have both headlights working, what is the probability that in a
sample of eight automobiles, at least seven will have both headlights working?

A. .6174
B. .3826
C. .8131
D. .1869

69. In Quebec, 90 percent of the population subscribes to the Roman Catholic religion. In a random sample of eight
Quebecois, find the probability that the sample contains at least five Roman Catholics.

A. .0050
B. .0331
C. .9950
D. .9619

70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit each time he's at bat). Scouts for
a rival baseball club secretly observe Harry's performance in 12 random times at bat. What is the probability
that Harry will get more than 2 hits?

A. .2055
B. .2362
C. .7946
D. .4417

71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of nine visits, what is the
probability that at least one dog will be adopted?

A. .8658
B. .3020
C. .5639
D. .1342

72. Based on experience, 60 percent of the women who request a pregnancy test at a certain clinic are actually
pregnant. In a random sample of 12 women, what is the probability that at least 10 are pregnant?

A. .0639
B. .1424
C. .0196
D. .0835

73. If 5 percent of automobiles in Oakland County have one burned-out headlight, what is the probability that, in a
sample of 10 automobiles, none will have a burned-out headlight?

A. .5987
B. .3151
C. .0116
D. .1872

74. Jankord Jewelers permits the return of their diamond wedding rings, provided the return occurs within two
weeks. Typically, 10 percent are returned. If eight rings are sold today, what is the probability that fewer than
three will be returned?

A. .9950
B. .9619
C. .0331
D. .1488

75. The probability that an Oxnard University student is carrying a backpack is .70. If 10 students are observed at
random, what is the probability that fewer than 7 will be carrying backpacks?

A. .3504
B. .2001
C. .6177
D. .2668

76. An insurance company is issuing 16 car insurance policies. Suppose the probability for a claim during a year is
15 percent. If the binomial probability distribution is applicable, then the probability that there will be at least
two claims during the year is equal to:

A. .5615
B. .2775
C. .7161
D. .0388

77. A random variable X is distributed binomially with n = 8 and π = 0.70. The standard deviation of the variable X
is approximately:

A. 0.458
B. 2.828
C. 1.680
D. 1.296

78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that X will be less than or equal to
3 is:

A. .5584
B. .7946
C. .2362
D. .7638

79. Which Excel function would generate a single random X value for a binomial random variable with parameters
n = 16 and π = .25?

A. =BINOM.DIST(RAND(),16,.25,0)
B. =BINOM.DIST(0,16,.25,RAND())
C. =BINOM.INV(16,.25,RAND())
D. =BINOM.INV(0,16,.25,RAND())

80. A network has three independent file servers, each with 90 percent reliability. The probability that the network
will be functioning correctly (at least one server is working) at a given time is:

A. 99.9 percent.
B. 97.2 percent.
C. 95.9 percent.
D. 72.9 percent.

81. Which statement concerning the binomial distribution is correct?

A. Its PDF covers all integer values of X from 0 to n.

B. Its PDF is the same as its CDF when π = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when π < .50.

82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly chosen day, the Southfield
city animal control officer picks up seven stray dogs. What is the probability that fewer than two will be
unlicensed?

A. .8681
B. .9921
C. .3670
D. .0076

83. The domain of X in a Poisson probability distribution is discrete and can include:

A. any real X value.

B. any integer X value.
C. any nonnegative integer X value.
D. any X value except zero.

84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is the probability of
fewer than three calls in a randomly chosen minute?

A. .1607
B. .8913
C. .2678
D. .7306

85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a decade in a certain California
county. Find the probability that at least one major earthquake will occur within the next decade.

A. .7408
B. .1992
C. .1494
D. .9502

86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a randomly chosen day,
what is the probability that she discovers fewer than two?

A. .0518
B. .0427
C. .1005
D. .1523

87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a historical rate of 0.6 victim per
day. On a given Sunday in April, what is the probability that exactly two dog bite victims will arrive?

A. .0875
B. .0902
C. .0988
D. .0919

88. If tubing averages 16 defects per 100 meters, what is the probability of finding exactly 2 defects in a randomly
chosen 10-meter piece of tubing?

A. .8795
B. .2674
C. .3422
D. .2584

89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability that exactly eight cars will
arrive in the next two minutes?

A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005

90. Arrival of cars per minute at a toll booth may be characterized by the Poisson distribution if:

A. the arrivals are independent.

B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D. the mean arrival rate is at least 30.

91. The coefficient of variation for a Poisson distribution with λ = 5 is:

A. 35.2 percent.
B. 58.9 percent.
C. 44.7 percent.
D. 31.1 percent.


A. 35.2 percent.
B. 58.9 percent.
C. 50.0 percent.
D. 26.4 percent.

93. For which binomial distribution would a Poisson approximation be unacceptable?

A. n = 30, π = 0.02

B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01

94. For which binomial distribution would a Poisson approximation be acceptable?

A. n = 60, π = 0.08

B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20

95. For which binomial distribution would a Poisson approximation not be acceptable?

A. n = 35, π = 0.07

B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03

96. The true proportion of accounts receivable with some kind of error is .02 for Venal Enterprises. If an auditor
randomly samples 200 accounts receivable, what is the approximate Poisson probability that fewer than two
will contain errors?

A. .1038
B. .0916
C. .1465
D. .0015

97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented, what is the approximate
Poisson probability that 2 or fewer will be stolen?

A. .3452
B. .2417
C. .5918
D. .8335

98. The probability that a customer will use a stolen credit card to make a purchase at a certain Target store is
0.003. If 400 purchases are made in a given day, what is the approximate Poisson probability that 4 or fewer
will be with stolen cards?

A. .0053
B. .0076
C. .9923
D. .0555

99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take the flight, what is the
approximate Poisson probability that at least 2 will miss the flight?

A. .9372
B. .0628
C. .1647
D. .2275

100. The probability that a certain daily flight's departure from ORD to LAX is delayed is .02. Over six months, this
flight departs 180 times. What is the approximate Poisson probability that it will be delayed fewer than 2
times?

A. .4471
B. .3028
C. .1257
D. .1771

101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).

A. .1126
B. .1666
C. .2308
D. .2500

102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).

A. .6250
B. .5000
C. .7500
D. .3750

103. If X is a discrete uniform random variable ranging from one to eight, its mean is:

A. 4.0
B. 4.5
C. 5.0
D. 5.5

104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:

A. 18.5
B. 16.0
C. 18.0
D. 19.5.

105. At Ersatz University, the graduating class of 480 includes 96 guest students from Latvia. A sample of 10
students is selected at random to attend a dinner with the Board of Governors. Use the binomial model to obtain
the approximate hypergeometric probability that the sample contains at least three Latvian students.

A. .3222
B. .1209
C. .8791
D. .6778

106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are traveling on business. In a
random sample of five passengers, use the binomial model to find the approximate hypergeometric probability
that there is at least one business passenger.

A. .3087
B. .1681
C. .3602
D. .8319

107. Use the binomial model to find the approximate hypergeometric probability of at least two damaged flash
drives in a sample of five taken from a shipment of 150 that contains 30 damaged flash drives.

A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627

108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used the e-ticket check-in kiosk to
obtain boarding passes. In a random sample of eight passengers, use the binomial model to find the
approximate hypergeometric probability that four will have used the e-ticket check-in kiosk to obtain boarding
passes.

A. .2322
B. .8263
C. .2926
D. .5613

109. A clinic employs nine physicians. Five of the physicians are female. Four patients arrive at once. Assuming the
doctors are assigned randomly to patients, what is the probability that all of the assigned physicians are
female?

A. .0397
B. .0295
C. .0808
D. .0533

110. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the
transaction exceeds the customer's credit limit. What is the probability that the first such rejection occurs on the
third Visa transaction?

A. .0192
B. .0025
C. .0247
D. .0200

111. Ten percent of the corporate managers at Axolotl Industries majored in humanities. If you start interviewing
Axolotl managers, what is the probability that the first humanities major is the fifth manager that you
interview?

A. .0656
B. .8561
C. .5904
D. .4095

112. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What is the expected
number of managers to be interviewed until finding the first one with a humanities major?

A. 15
B. 20
C. 10
D. 17

113. When you send out a resume, the probability of being called for an interview is .20. What is the probability that
the first interview occurs on the fourth resume that you send out?

A. .4096
B. .1024
C. .2410
D. .0016

114. When you send out a resume, the probability of being called for an interview is .20. What is the expected
number of resumes you send out until you get the first interview?

A. 5
B. 7
C. 10
D. 12

115. When you send out a resume, the probability of being called for an interview is .20. What is the probability that
you get your first interview within the first five resumes that you send out?

A. .6723
B. .1024
C. .2410
D. .0016

transaction exceeds the customer's credit limit. What is the probability that the first such rejection occurs within
the first 20 Visa transactions?

A. .1362
B. .4000
C. .3324
D. .4538

transaction exceeds the customer's credit limit. What is the expected number of Visa transactions until the first
one is rejected?

A. 10
B. 20
C. 50
D. 98

118. The geometric distribution best describes:

A. the number of successes in a sample of n trials.

B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.

119. The CDF for the geometric distribution shows:

A. the probability of success in a random experiment consisting of n independent trials.

B. the probability that the first success will occur within a given number of trials.
C. the probability that no success will be obtained in a given Bernoulli trial.
D. the probability of more than one success in the first n trials.

120. If the probability of success is .25, what is the probability of obtaining the first success within the first three
trials?

A. .4218
B. .5781
C. .1406
D. .2228

121. If the probability of success is .30, what is the probability of obtaining the first success within the first five
trials?

A. .0024
B. .8319
C. .1681
D. .9976

122. A project has three independent stages that must be completed in sequence. The time to complete each stage is
a random variable. The expected times to complete the stages are μ1 = 23, μ2 = 11, μ3 = 17. The expected project
completion time is:

A. 51.
B. 23.
C. 40.
D. 32.

123. A project has 3 independent stages that must be completed in sequence. The time to complete each stage is a
random variable. The standard deviations of the completion times for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The
standard deviation of the overall project completion time is:

A. 8.77
B. 15.0
C. 14.2
D. 9.24

124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are independent random variables
with standard deviations σX = 2.51 and σY = 5.22. What is the standard deviation of the sum of the closing prices
of these two stocks?

A. 33.55
B. 6.48
C. 7.73
D. 5.79

125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are correlated random variables with
variances σX2 = 3.51 and σY2 = 5.22, and covariance σXY = -1.55. What is the standard deviation of the sum of the
closing prices of these two stocks?

A. 5.63
B. 7.18
C. 8.73
D. 2.68

126. The expected value of a random variable X is 140 and the standard deviation is 14. The standard deviation of
the random variable Y = 3X - 10 is:

A. 42
B. 6.48
C. 14
D. 32

127. The expected value of a random variable X is 10 and the standard deviation is 2. The standard deviation of the
random variable Y = 2X - 10 is:

A. 2
B. 4
C. -10
D. -6

Chapter 06 Discrete Probability Distributions Answer Key


1. A random variable is a function or rule that assigns a numerical value to each outcome in the sample space
of a stochastic (chance) experiment.

TRUE
Review definition of discrete random variable.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions

2. A discrete random variable has a countable number of distinct values.

TRUE
Review definition of discrete random variable. But "countable" does not necessarily imply that we know the
upper limit (e.g., number of computer virus attacks per year).

Blooms: Remember
Difficulty: 1 Easy

3. The expected value of a discrete random variable E(X) is the sum of all X values weighted by their
respective probabilities.

TRUE
Review definition of expected value. The mean is a weighted average.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance

4. A discrete distribution can be described by its probability density function (PDF) or by its cumulative
distribution function (CDF).

TRUE
Review definition of PDF (point probability) and CDF (cumulative sum of probabilities).

Blooms: Remember
Difficulty: 1 Easy

5. A random variable may be discrete or continuous, but not both.

TRUE
Review definition of discrete and continuous. Discrete implies enumerable.

Blooms: Remember

6. To describe the number of blemishes per sheet of white bond paper, we would use a discrete uniform
distribution.

FALSE
Not all X values would be equally likely and we have no upper limit (Poisson distribution would be better).

Blooms: Understand
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
Topic: Poisson Distribution

7. The outcomes for the sum of two dice can be described as a discrete uniform distribution.

FALSE
The sum of two dice follows a triangular distribution, as was shown in Chapter 5.

Blooms: Understand

8. A discrete binomial distribution is skewed right when π > .50.

FALSE
Most outcomes would be on the right, so a longer left tail exists.

Blooms: Understand
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
Topic: Binomial Distribution

9. When π = .70 the discrete binomial distribution is negatively skewed.

TRUE
Most outcomes would be on the right, so a longer left tail exists.

Blooms: Understand

10. The Poisson distribution describes the number of occurrences within a randomly chosen unit of time or
space.

TRUE
Poisson describes events per unit of time.

Blooms: Remember
Difficulty: 1 Easy

11. The Poisson distribution can be skewed either left or right, depending on λ.

FALSE
Poisson is always right-skewed.

Blooms: Understand

12. Although the shape of the Poisson distribution is positively skewed, it becomes more nearly symmetric as its
mean becomes larger.

TRUE
Although always right-skewed, the Poisson approaches a normal as the mean increases.

Blooms: Remember

13. As a rule of thumb, the Poisson distribution can be used to approximate a binomial distribution when n ≥ 20
and π ≤ .05.

TRUE
The Poisson is a better approximation to a binomial when n is large and π is small.

Blooms: Remember
Learning Objective: 06-06 Use the Poisson approximation to the binomial (optional).

14. The hypergeometric distribution is skewed right.

FALSE
The hypergeometric is skewed right if s/N < .50 (and conversely).

Blooms: Remember
Learning Objective: 06-07 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

15. The hypergeometric distribution assumes that the probability of a success remains the same from one trial to
the next.

FALSE
In the hypergeometric, π is not constant, because we are sampling without replacement.

Blooms: Remember
Difficulty: 1 Easy

16. The hypergeometric distribution is not applicable if sampling is done with replacement.

TRUE
The hypergeometric is used when there is no replacement in sampling from a finite population.

Blooms: Remember
Difficulty: 1 Easy

17. As a rule of thumb, the binomial distribution can be used to approximate the hypergeometric distribution
whenever the population is at least 20 times as large as the sample.

TRUE
It is safe to use the binomial-hypergeometric approximation if n/N < .05.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).

18. An example of a geometric random variable is the number of pine trees with pine beetle infestation in a
random sample of 15 pine trees in Colorado.

FALSE
This is a binomial experiment, assuming π is constant.

Blooms: Understand
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

19. Calculating the probability of getting three aces in a hand of five cards dealt from a deck of 52 cards would
require the use of a hypergeometric distribution.

TRUE
This is a hypergeometric experiment (sampling without replacement).

Blooms: Understand

20. The Poisson distribution is appropriate to describe the number of babies born in a small hospital on a given
day.

TRUE
Events per unit of time with no clear upper limit suggests a Poisson event.

Blooms: Understand

21. The gender (M, F) of a randomly chosen unborn child is a Bernoulli event.

TRUE
Bernoulli events have two outcomes (0 or 1).

Blooms: Understand

22. The Poisson distribution has only one parameter.

TRUE
The one Poisson parameter is its mean.

Blooms: Remember
Difficulty: 1 Easy

23. The standard deviation of a Poisson random variable is the square root of its mean.

TRUE
Yes, because the mean and variance of a Poisson are the same.

Blooms: Remember
Difficulty: 1 Easy

24. Customer arrivals per unit of time would tend to follow a binomial distribution.

FALSE
This would be a Poisson (arrivals per unit of time).

Blooms: Understand
Difficulty: 1 Easy

25. The two outcomes (success, failure) in the Bernoulli model are equally likely.

FALSE
No, the probability of success need not be .50.

Blooms: Understand

26. The expected value of a random variable is its mean.

TRUE
The mean is another name for expected value.

Blooms: Remember


27. A discrete probability distribution:

A. is a listing of all possible values of the random variable.

B. assigns a probability to each possible value of the random variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.
A discrete PDF assigns a probability to each X value.

Blooms: Understand

28. The number of male babies in a sample of 10 randomly chosen babies is a:

A. continuous random variable.

B. Poisson random variable.
C. binary random variable.
D. binomial random variable.
Constant probability of success in n trials.

Blooms: Understand
Difficulty: 1 Easy

29. A discrete random variable:

A. can be treated as continuous when it has a large range of values.

B. cannot be treated as continuous.
C. is best avoided if at all possible.
D. is usually uniformly distributed.
For example, the Sunday vehicle count on a freeway is a discrete (but large) number.

Blooms: Understand


A. The number of defects in a 4 × 8 sheet of plywood

B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam
Time is continuous.

Blooms: Understand
Difficulty: 1 Easy


A. The number of births in a hospital on a given day

B. The number of fives obtained in four rolls of a die
C. The hourly earnings of a call center employee in Boston
D. The number of applicants applying for a civil service job
Someone's earnings would be more like a continuous measurement.

Blooms: Understand
Difficulty: 1 Easy


A. The Poisson distribution is always skewed right.

B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.
A hypergeometric distribution is symmetric only if s/N = .50.

Blooms: Understand

33. The random variable X is the number of shots it takes before you make the first free throw in basketball.
Assuming the probability of success (making a free throw) is constant from trial to trial, what type of
distribution does X follow?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Geometric model describes the number of trials until the first success.

Blooms: Apply

34. Which probability model is most nearly appropriate to describe the number of burned-out fluorescent tubes
in a classroom with 12 fluorescent tubes, assuming a constant probability of a burned-out tube?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
n = 12 Bernoulli trials with fixed probability of success would be a binomial model.

Blooms: Apply

35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas in a given year
due to poisonous snakebites?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Events per unit of time with no clear upper limit would resemble a Poisson distribution.

Blooms: Apply

36. Which model would you use to describe the probability that a call-center operator will make the first sale on
the third call, assuming a constant probability of making a sale?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Geometric describes the number of trials to first success.

Blooms: Apply

37. In a randomly chosen week, which probability model would you use to describe the number of accidents at
the intersection of two streets?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Blooms: Apply

38. Which model best describes the number of nonworking web URLs ("This page cannot be displayed") you
encounter in a randomly chosen minute while surfing websites for Florida vacation rental condos?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Blooms: Apply

39. Which probability model would you use to describe the number of damaged printers in a random sample of
4 printers taken from a shipment of 28 printers that contains 3 damaged printers?

A. Poisson
B. Hypergeometric
C. Binomial
D. Uniform
Sampling (n = 4 printers) without replacement with known number of "successes" (s = 3 damaged printers)
in the population (N = 28 printers).

Blooms: Apply

40. Which model best describes the number of incorrect fare quotations by a well-trained airline ticket agent
between 2 p.m. and 3 p.m. on a particular Thursday?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Blooms: Apply

41. Which model best describes the number of blemishes per sheet of white bond paper?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Events per unit of area with no clear upper limit would resemble a Poisson distribution.

Blooms: Apply

42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a particular
Thursday afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are incorrect. In a random sample
of 8 of these customer calls, which model best describes the number of incorrect quotations Bob will make?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Sampling (n = 8 calls selected) without replacement with known number of "successes" (s = 4 incorrect
quotes) in the population (N = 40 quotes).

Blooms: Apply

43. The number of people injured in rafting expeditions on the Colorado River on a randomly chosen Thursday
in August is best described by which model?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Independent events per unit of time with no clear upper limit would be Poisson.

Blooms: Apply
Difficulty: 1 Easy

44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free mule ride. Ten of
the entrants are European tourists. Five entrants are selected at random to get the free mule ride. Which
model best describes the number of European tourists in the random sample?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Sampling (n = 5 tourists selected) without replacement with known number of "successes" (s = 10

Europeans) in the population (N = 40).

Blooms: Apply

45. Which model best describes the number of births in a hospital until the first twins are delivered?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Geometric distribution describes the number of trials until the first success.

Blooms: Apply

46. On a randomly chosen Wednesday, which probability model would you use to describe the number of
convenience store robberies in Los Angeles?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Events per unit of time with no clear upper limit would be Poisson.

Blooms: Apply

47. Which probability model would you use to describe the number of customers served at a certain California
Pizza Kitchen until the first customer orders split pea soup?

A. Binomial
B. Geometric
C. Uniform
D. Poisson
Geometric distribution describes the number of trials until the first success.

Blooms: Apply

48. Which distribution has a mean of 5?

A. Poisson with λ = 25

C. Hypergeometric with N = 100, n = 10, s = 50
Review model parameters. The hypergeometric mean is ns/N = (10)(50)/100 = 5.

Blooms: Apply

49. Of the following, the one that most resembles a Poisson random variable is the number of:

A. heads in 200 flips of a fair coin.

B. annual power failures at your residence.
C. face cards in a bridge hand of 13 cards.
D. defective CDs in a spool containing 15 CDs.
Independent arrivals per unit of time with no clear upper limit would be Poisson.

Blooms: Apply
Difficulty: 1 Easy

50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be selected at random.
At what ticket price would a ticket buyer expect to break even?

A. $0.50
B. $0.25
C. $0.75
D. $1.00
Expected winning is (1/4000) × $1000 = $0.25.

Blooms: Apply
Difficulty: 3 Hard

51. A die is rolled. If it rolls to a 1, 2, or 3, you win $2. If it rolls to a 4, 5, or 6, you lose $1. Calculate the
expected winnings.

A. $0.50
B. $3.00
C. $1.50
D. $1.00
E(X) = (3/6) × $2 + (3/6) × (-$1) = $0.50.

Blooms: Apply

52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6, you lose $1. Calculate the
expected winnings.

A. $0.00
B. $1.00
C. $0.50
D. $0.25
E(X) = (2/6) × $2 + (4/6) × (-$1) = $0.6667 - $0.6667 = 0.

Blooms: Apply

53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands tails
you lose $0.50. How much should a ticket to play this game cost if the carnival wants to break even?

A. $0.25
B. $0.50
C. $0.75
D. $1.00
E(X) = (.5) × $1 + (.5) × (-$.50) = $0.50 - $0.25 = $0.25.

Blooms: Apply
Difficulty: 3 Hard

54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are bidding for a
$900,000 government contract. Each company has an equal chance of being awarded the contract. If ESCO
has already spent $100,000 in developing its bidding proposal, what is its expected net profit?

A. $100,000
B. $90,000
C. -$10,000
D. $0
E(X) = (1/9) × $900,000 = $100,000. ESCO only can expect to cover its sunk cost (no profit).

Blooms: Apply
Difficulty: 3 Hard

Monday afternoons. The table below shows the probability distribution for X. What is the expected value
E(X) for this distribution?

A. 1.2
B. 1.0
C. 1.5
D. 2.0
For each X, multiply X time P(X) and sum the values.

Blooms: Apply

Monday afternoons. The table below shows the probability distribution for X. What is the probability that at
least 1 student comes to office hours on any given Monday?

A. .30
B. .40
C. .50
D. .60
P(X ≥ 1) = 1 - P(X = 0) = 1 - .40 = .60.

Blooms: Apply
Difficulty: 1 Easy

Monday afternoons. The table below shows the probability distribution for X. What is the probability that
fewer than 2 students come to office hours on any given Monday?

A. .10
B. .40
C. .70
D. .90
P(X < 2) = P(X = 0) + P(X = 1) = .40 + .30 = .70.

Blooms: Apply
Difficulty: 1 Easy

58. The discrete random variable X is the number of passengers waiting at a bus stop. The table below shows
the probability distribution for X. What is the expected value E(X) for this distribution?

A. 1.1
B. 1.3
C. 1.7
D. 1.9
For each X, multiply X times P(X) and sum the values.

Blooms: Apply

59. Given the following probability distribution, what is the expected value of the random variable X?

A. 175
B. 150
C. 200
D. 205
For each X, multiply X times P(X) and sum the values.

Blooms: Apply

60. Which of the following characterizes a Bernoulli process?

A. A random experiment that has only two outcomes.

B. The probability of "success" varies with each trial.
C. Either outcome has the same chance of occurrence.
D. The "success" must be a desirable outcome.
Review characteristics of the Bernoulli (binary) process.

Blooms: Understand
Difficulty: 1 Easy

61. The binomial distribution describes the number of:

A. trials to obtain the first "success" in a Bernoulli process.

B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D. "successes" in n Bernoulli trials.
Review characteristics of the binomial distribution (repeated binary trials).

Blooms: Remember
Difficulty: 1 Easy

62. Which of the following is not a requirement of a binomial distribution?

A. Constant probability of success

B. Only two possible Bernoulli outcomes
C. Fixed number of trials
D. Equally likely outcomes
Review characteristics of the binomial distribution (repeated binary trials).

Blooms: Remember

63. The binomial distribution is symmetrical when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
The binomial distribution is skewed unless π = .50.

Blooms: Understand

64. The variance will reach a maximum in a binomial distribution when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
Review formula for the binomial distribution standard deviation.

Blooms: Understand
Difficulty: 3 Hard

65. Which distribution is most strongly right-skewed?

A. Binomial with n = 50, π = .70

C. Binomial with n = 50, π = .40
D. Binomial with n = 50, π = .10
The binomial is right-skewed when π < .50.

Blooms: Understand

66. A random variable is binomially distributed with n = 16 and π = .40. The expected value and standard
deviation of the variables are:

A. 2.00 and 1.24

B. 4.80 and 4.00
C. 6.40 and 1.96
D. 2.00 and 1.20
Review formulas for the binomial distribution mean and standard deviation.

Blooms: Remember

67. The expected value (mean) of a binomial variable is 15. The number of trials is 20. The probability of
"success" is:

A. .25
B. .50
C. .75
D. .30
Set E(X) = nπ = (20)π = 15 and solve for π.

Blooms: Apply

68. If 90 percent of automobiles in Orange County have both headlights working, what is the probability that in
a sample of eight automobiles, at least seven will have both headlights working?

A. .6174
B. .3826
C. .8131
D. .1869
Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the Excel function =1-
BINOM.DIST(6,8,.90,1) = .8131.

Blooms: Apply

69. In Quebec, 90 percent of the population subscribes to the Roman Catholic religion. In a random sample of
eight Quebecois, find the probability that the sample contains at least five Roman Catholics.

A. .0050
B. .0331
C. .9950
D. .9619
BINOM.DIST(4,8,.90,1) = .99498.

Blooms: Apply

70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit each time he's at bat). Scouts
for a rival baseball club secretly observe Harry's performance in 12 random times at bat. What is the
probability that Harry will get more than 2 hits?

A. .2055
B. .2362
C. .7946
D. .4417
BINOM.DIST(2,12,.20,1) = .44165.

Blooms: Apply

71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of nine visits, what is the
probability that at least one dog will be adopted?

A. .8658
B. .3020
C. .5639
D. .1342
BINOM.DIST(0,9,.20,1) = .865778.

Blooms: Apply

72. Based on experience, 60 percent of the women who request a pregnancy test at a certain clinic are actually
pregnant. In a random sample of 12 women, what is the probability that at least 10 are pregnant?

A. .0639
B. .1424
C. .0196
D. .0835
BINOM.DIST(9,12,.60,1) = .08344.

Blooms: Apply

73. If 5 percent of automobiles in Oakland County have one burned-out headlight, what is the probability that,
in a sample of 10 automobiles, none will have a burned-out headlight?

A. .5987
B. .3151
C. .0116
D. .1872
Use Appendix A with n = 10 and π = .05 find P(X = 0) or else use the Excel function
=BINOM.DIST(0,10,.05,0) = .59874.

Blooms: Apply
Difficulty: 1 Easy

74. Jankord Jewelers permits the return of their diamond wedding rings, provided the return occurs within two
weeks. Typically, 10 percent are returned. If eight rings are sold today, what is the probability that fewer
than three will be returned?

A. .9950
B. .9619
C. .0331
D. .1488
Use Appendix A with n = 8 and π = .10 to find P(X < 3) or else use the Excel function
=BINOM.DIST(2,8,.1,1) = .96191.

Blooms: Apply

75. The probability that an Oxnard University student is carrying a backpack is .70. If 10 students are observed
at random, what is the probability that fewer than 7 will be carrying backpacks?

A. .3504
B. .2001
C. .6177
D. .2668
Use Appendix A with n = 10 and π = .70 to find P(X < 7) or else use the Excel function
=BINOM.DIST(6,10,.7,1) = .35039.

Blooms: Apply

76. An insurance company is issuing 16 car insurance policies. Suppose the probability for a claim during a year
is 15 percent. If the binomial probability distribution is applicable, then the probability that there will be at
least two claims during the year is equal to:

A. .5615
B. .2775
C. .7161
D. .0388
BINOM.DIST(1,16,.15,1) = .7161.

Blooms: Apply

77. A random variable X is distributed binomially with n = 8 and π = 0.70. The standard deviation of the
variable X is approximately:

A. 0.458
B. 2.828
C. 1.680
D. 1.296
Use the formula for the binomial standard deviation.

Blooms: Understand
Difficulty: 1 Easy

78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that X will be less than or equal
to 3 is:

A. .5584
B. .7946
C. .2362
D. .7638
Use Appendix A with n = 12 and π = .20 to find P(X ≤ 3) or else use the Excel function
=BINOM.DIST(3,12,.2,1) = .79457.

Blooms: Apply

79. Which Excel function would generate a single random X value for a binomial random variable with
parameters n = 16 and π = .25?

A. =BINOM.DIST(RAND(),16,.25,0)
B. =BINOM.DIST(0,16,.25,RAND())
C. =BINOM.INV(16,.25,RAND())
D. =BINOM.INV(0,16,.25,RAND())
This is the Excel 2010 function for the inverse of a binomial.

AACSB: Technology
Blooms: Remember
Difficulty: 3 Hard

80. A network has three independent file servers, each with 90 percent reliability. The probability that the
network will be functioning correctly (at least one server is working) at a given time is:

A. 99.9 percent.

B. 97.2 percent.
C. 95.9 percent.
D. 72.9 percent.
Use Appendix A with n = 3 and π = .90.

Blooms: Apply
Difficulty: 3 Hard

81. Which statement concerning the binomial distribution is correct?

A. Its PDF covers all integer values of X from 0 to n.

B. Its PDF is the same as its CDF when π = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when π < .50.
Review definitions of the binomial distribution. The binomial domain is X = 0, 1,…, n.

Blooms: Remember

82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly chosen day, the
Southfield city animal control officer picks up seven stray dogs. What is the probability that fewer than two
will be unlicensed?

A. .8681
B. .9921
C. .3670
D. .0076
Use Appendix A with n = 7 and π = .02.

Blooms: Apply

83. The domain of X in a Poisson probability distribution is discrete and can include:

A. any real X value.

B. any integer X value.
C. any nonnegative integer X value.
D. any X value except zero.
For a Poisson random variable, X = 0, 1, 2, . . . (no upper limit).

Blooms: Remember
Difficulty: 1 Easy

84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is the probability of
fewer than three calls in a randomly chosen minute?

A. .1607
B. .8913
C. .2678
D. .7306
Use Appendix B with λ = 108/60 = 1.8.

Blooms: Apply
Difficulty: 3 Hard

85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a decade in a certain
California county. Find the probability that at least one major earthquake will occur within the next decade.

A. .7408
B. .1992
C. .1494
D. .9502
Use Appendix B with λ = 3.0.

Blooms: Apply

86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a randomly chosen day,
what is the probability that she discovers fewer than two?

A. .0518
B. .0427
C. .1005
D. .1523

Blooms: Apply

87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a historical rate of 0.6 victim
per day. On a given Sunday in April, what is the probability that exactly two dog bite victims will arrive?

A. .0875
B. .0902
C. .0988
D. .0919

Blooms: Apply

88. If tubing averages 16 defects per 100 meters, what is the probability of finding exactly 2 defects in a
randomly chosen 10-meter piece of tubing?

A. .8795
B. .2674
C. .3422
D. .2584
Use Appendix B with λ = 16/10 = 1.6.

Blooms: Apply
Difficulty: 3 Hard

89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability that exactly eight cars
will arrive in the next two minutes?

A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005

Blooms: Apply
Difficulty: 3 Hard

90. Arrival of cars per minute at a toll booth may be characterized by the Poisson distribution if:

A. the arrivals are independent.

B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D. the mean arrival rate is at least 30.
Events per unit of time with no clear upper limit.

Blooms: Remember
Difficulty: 1 Easy


A. 35.2 percent.

B. 58.9 percent.
C. 44.7 percent.
D. 31.1 percent.
Use the coefficient of variation with standard deviation equal to the square root of the mean.

Blooms: Apply


A. 35.2 percent.

B. 58.9 percent.
C. 50.0 percent.
D. 26.4 percent.
The Poisson standard deviation is the square root of the mean.

Blooms: Apply

93. For which binomial distribution would a Poisson approximation be unacceptable?

A. n = 30, π = 0.02

B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01
We want n ≥ 20 and π ≤ .05.

Blooms: Apply

94. For which binomial distribution would a Poisson approximation be acceptable?

A. n = 60, π = 0.08

B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.

Blooms: Apply

95. For which binomial distribution would a Poisson approximation not be acceptable?

A. n = 35, π = 0.07

B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.

Blooms: Apply

96. The true proportion of accounts receivable with some kind of error is .02 for Venal Enterprises. If an auditor
randomly samples 200 accounts receivable, what is the approximate Poisson probability that fewer than two

A. .1038
B. .0916
C. .1465
D. .0015
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (200)(.02) = 4.0 and use Appendix B to find P(X ≤ 1), or else
use the Excel cumulative distribution function =POISSON.DIST(1,4.0,1) = .09158.

Blooms: Apply
Difficulty: 3 Hard

97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented, what is the approximate
Poisson probability that 2 or fewer will be stolen?

A. .3452
B. .2417
C. .5918
D. .8335
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (3500)(.0004) = 1.4 and use Appendix B to find P(X ≤ 2), or
else use the Excel cumulative distribution function =POISSON.DIST(2,1.4,1) = .8335.

Blooms: Apply
Difficulty: 3 Hard

98. The probability that a customer will use a stolen credit card to make a purchase at a certain Target store is
0.003. If 400 purchases are made in a given day, what is the approximate Poisson probability that 4 or fewer
will be with stolen cards?

A. .0053
B. .0076
C. .9923
D. .0555
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (400)(.003) = 1.2 and use Appendix B, or else use the Excel
cumulative distribution function =POISSON.DIST(4,.003*400,1) = .9923.

Blooms: Apply
Difficulty: 3 Hard

99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take the flight, what is the
approximate Poisson probability that at least 2 will miss the flight?

A. .9372
B. .0628
C. .1647
D. .2275
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (.005)(180) = 0.9 and use Appendix B to find P(X ≥ 2), or else
use the Excel cumulative distribution function =1-POISSON.DIST(1,0.9,1) = .2275.

Blooms: Apply
Difficulty: 3 Hard

100. The probability that a certain daily flight's departure from ORD to LAX is delayed is .02. Over six months,
this flight departs 180 times. What is the approximate Poisson probability that it will be delayed fewer than
2 times?

A. .4471
B. .3028
C. .1257
D. .1771
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (180)(.02) = 3.6 and use Appendix B to find P(X ≤ 1) or else
use the Excel cumulative distribution function =POISSON.DIST(1,3.6,1) = .12569.

Blooms: Apply
Difficulty: 3 Hard

101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).

A. .1126
B. .1666
C. .2308
D. .2500
3 out of 13 outcomes (don't forget to count 0 as an outcome).

Blooms: Apply
Learning Objective: 06-03 Define and apply the uniform discrete model.
Topic: Uniform Distribution

102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).

A. .6250
B. .5000
C. .7500
D. .3750
We count five out of eight outcomes that meet this requirement.

Blooms: Apply

103. If X is a discrete uniform random variable ranging from one to eight, its mean is:

A. 4.0
B. 4.5
C. 5.0
D. 5.5
The mean is halfway between the lower and upper limits 1 and 8.

Blooms: Apply
Difficulty: 1 Easy

104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:

A. 18.5
B. 16.0
C. 18.0
D. 19.5.
The mean is halfway between the lower and upper limits 12 and 24.

Blooms: Apply
Difficulty: 1 Easy

105. At Ersatz University, the graduating class of 480 includes 96 guest students from Latvia. A sample of 10
students is selected at random to attend a dinner with the Board of Governors. Use the binomial model to
obtain the approximate hypergeometric probability that the sample contains at least three Latvian students.

A. .3222
B. .1209
C. .8791
D. .6778
Since n/N < .05 we can use Appendix A with n = 10 and π = 96/480 = .20 to find P(X ≥ 3).

Blooms: Apply

106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are traveling on business. In a
random sample of five passengers, use the binomial model to find the approximate hypergeometric
probability that there is at least one business passenger.

A. .3087
B. .1681
C. .3602
D. .8319

Blooms: Apply
Difficulty: 3 Hard

107. Use the binomial model to find the approximate hypergeometric probability of at least two damaged flash
drives in a sample of five taken from a shipment of 150 that contains 30 damaged flash drives.

A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627

Blooms: Apply

108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used the e-ticket check-in kiosk
to obtain boarding passes. In a random sample of eight passengers, use the binomial model to find the
approximate hypergeometric probability that four will have used the e-ticket check-in kiosk to obtain
boarding passes.

A. .2322
B. .8263
C. .2926
D. .5613
Since n/N < .05 we can use Appendix A with n = 8 and π = 112/280 = .40 to find P(X = 4).

Blooms: Apply
Difficulty: 3 Hard

109. A clinic employs nine physicians. Five of the physicians are female. Four patients arrive at once. Assuming
the doctors are assigned randomly to patients, what is the probability that all of the assigned physicians are
female?

A. .0397
B. .0295
C. .0808
D. .0533
You can't use the binomial approximation, because we have sampled more than 5% of the population (n/N =
4/9 = .444) so we use the hypergeometric formula with x = 4, n = 4, s = 5, N = 9 or use the Excel function
=HYPGEOM.DIST(4,4,5,9,0) = .03938.

Blooms: Apply
Difficulty: 3 Hard

transaction exceeds the customer's credit limit. What is the probability that the first such rejection occurs on
the third Visa transaction?

A. .0192
B. .0025
C. .0247
D. .0200
Use the formulas for the geometric PDF (not the CDF) with π = .02 to find P(X = 3) = .02(1 - .02)3-1 = .
02(.98)2 = .02(.9604) = .019208.

Blooms: Apply
Difficulty: 3 Hard

111. Ten percent of the corporate managers at Axolotl Industries majored in humanities. If you start interviewing
Axolotl managers, what is the probability that the first humanities major is the fifth manager that you
interview?

A. .0656
B. .8561
C. .5904
D. .4095
10(.90)4 = .10(.6561) = .06561.

Blooms: Apply
Difficulty: 3 Hard

112. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What is the expected
number of managers to be interviewed until finding the first one with a humanities major?

A. 15
B. 20
C. 10
D. 17
The geometric mean is 1/π = 1/(.10) = 10.

Blooms: Apply

113. When you send out a resume, the probability of being called for an interview is .20. What is the probability
that the first interview occurs on the fourth resume that you send out?

A. .4096
B. .1024
C. .2410
D. .0016
20(.80)3 = .20(.512) = .1024.

Blooms: Apply
Difficulty: 3 Hard

114. When you send out a resume, the probability of being called for an interview is .20. What is the expected
number of resumes you send out until you get the first interview?

A. 5
B. 7
C. 10
D. 12

Blooms: Apply

115. When you send out a resume, the probability of being called for an interview is .20. What is the probability
that you get your first interview within the first five resumes that you send out?

A. .6723
B. .1024
C. .2410
D. .0016
Use the formulas for the geometric CDF (not the PDF) with π = .20 to find P(X ≤ 5) = 1 - (1 - .20)5 = 1 -
(.80)5 = 1 - .32678 = .67232.

Blooms: Apply
Difficulty: 3 Hard

transaction exceeds the customer's credit limit. What is the probability that the first such rejection occurs
within the first 20 Visa transactions?

A. .1362
B. .4000
C. .3324
D. .4538
(.98)20 = 1 - .6676 = .3324.

Blooms: Apply

transaction exceeds the customer's credit limit. What is the expected number of Visa transactions until the
first one is rejected?

A. 10
B. 20
C. 50
D. 98

Blooms: Apply

118. The geometric distribution best describes:

A. the number of successes in a sample of n trials.

B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.
Review the definition of geometric distribution.

Blooms: Remember

119. The CDF for the geometric distribution shows:

A. the probability of success in a random experiment consisting of n independent trials.

B. the probability that the first success will occur within a given number of trials.
C. the probability that no success will be obtained in a given Bernoulli trial.
D. the probability of more than one success in the first n trials.
Review the definition of geometric distribution.

Blooms: Understand

120. If the probability of success is .25, what is the probability of obtaining the first success within the first three
trials?

A. .4218
B. .5781
C. .1406
D. .2228
(.75)3 = 1 - .421875 = .578125.

Blooms: Apply
Difficulty: 3 Hard

121. If the probability of success is .30, what is the probability of obtaining the first success within the first five
trials?

A. .0024
B. .8319
C. .1681
D. .9976
(.70)5 = 1 - .16807 = .83193.

Blooms: Apply
Difficulty: 3 Hard

122. A project has three independent stages that must be completed in sequence. The time to complete each stage
is a random variable. The expected times to complete the stages are μ1 = 23, μ2 = 11, μ3 = 17. The expected
project completion time is:

A. 51.
B. 23.
C. 40.
D. 32.
The means can be summed because the stages are independent.

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-10 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

123. A project has 3 independent stages that must be completed in sequence. The time to complete each stage is a
random variable. The standard deviations of the completion times for the stages are σ1 = 5, σ2 = 4, σ3 = 6.
The standard deviation of the overall project completion time is:

A. 8.77
B. 15.0
C. 14.2
D. 9.24
The variances can be summed because the stages are independent (Rule 4). You have to square the standard
deviations to get the variances σ12 = 25, σ22 = 16, σ32 = 36, then add them and take the square root of the sum.
Be careful—the standard deviations cannot be summed.

Blooms: Apply
Difficulty: 3 Hard

124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are independent random
variables with standard deviations σX = 2.51 and σY = 5.22. What is the standard deviation of the sum of the
closing prices of these two stocks?

A. 33.55
B. 6.48
C. 7.73
D. 5.79
The variances can be summed because the stages are independent (Rule 4). You have to square the standard
deviations to get the variances σX2 = 6.3001 and σY2 = 27.2484, then add them and take the square root of the
sum. Be careful—the standard deviations cannot be summed.

Blooms: Apply

125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are correlated random variables
with variances σX2 = 3.51 and σY2 = 5.22, and covariance σXY = -1.55. What is the standard deviation of the
sum of the closing prices of these two stocks?

A. 5.63
B. 7.18
C. 8.73
D. 2.68
Use the formula for the variance of correlated (nonindependent) events. We sum the variances and
covariance, and then take the square root: σX+Y = [σX2 + σY2 + σXY]1/2 = [3.51 + 5.22 - 1.55]1/2 = [7.18]1/2 =
2.67955.

Blooms: Apply
Difficulty: 3 Hard

126. The expected value of a random variable X is 140 and the standard deviation is 14. The standard deviation
of the random variable Y = 3X - 10 is:

A. 42
B. 6.48
C. 14
D. 32
Use the rule for functions of a random variable (Rule 2) to get σY = 3σX = (3)(14) = 42. The constant -10
merely shifts the distribution and has no effect on the standard deviation. The mean of Y is not requested.

Blooms: Apply
Difficulty: 3 Hard

127. The expected value of a random variable X is 10 and the standard deviation is 2. The standard deviation of
the random variable Y = 2X - 10 is:

A. 2
B. 4
C. -10
D. -6
Use the rule for functions of a random variable (Rule 2) to get σY = 2σX = (2)(2) = 4. The constant -10 merely
shifts the distribution and has no effect on the standard deviation. The mean of Y is not requested.

Blooms: Apply
Difficulty: 3 Hard

Chapter 07
Continuous Probability Distributions


1. A continuous uniform distribution is always symmetric.

True False

2. The height and width of a continuous uniform distribution's PDF are the same.

True False

3. A continuous uniform distribution U(0, 800) will have μ = 400 and σ = 230.94.

True False

4. A continuous uniform distribution U(100, 200) will have the same standard deviation as a continuous uniform
distribution U(200,300).

True False

5. For a continuous uniform distribution U(200, 400), the parameters are μ = 300 and σ = 100.

True False

6. The exponential distribution describes the number of arrivals per unit of time.

True False

7. The exponential distribution is always skewed right.

True False

8. If arrivals follow a Poisson distribution, waiting times follow the exponential distribution.

True False

9. The triangular distribution is used in "what-if" analysis for business planning.

True False

10. The triangular distribution is symmetric.

True False

11. The triangular distribution T(0, 10, 20) is skewed left.

True False

12. A triangular distribution can be skewed either left or right.

True False

13. For a continuous random variable, the total area beneath the PDF will be greater than zero but less than one.

True False

14. The exponential distribution is continuous and the Poisson distribution is discrete, yet the two distributions are
closely related.

True False

15. The mean, median, and mode of a normal distribution will always be the same.

True False

16. There is a simple formula for normal areas, but we prefer a table for greater accuracy.

True False

17. Normal distributions differ only in their means and variances.

True False

18. Any normal distribution has a mean of 0 and a standard deviation of 1.

True False

19. We would use a normal distribution to model the waiting time until the next Florida hurricane strike.

True False

20. Experience suggests that 4 percent of all college students had a tonsillectomy. In a sample of 300 college
students, we need to find the probability that at least 10 had a tonsillectomy. It is acceptable to use the normal
distribution to estimate this probability.

True False

21. The normal is a good approximation to the binomial when n is greater than or equal to 10.

True False

22. The true proportion of accounts receivable with some kind of error is 4 percent for Venal Enterprises. If an
auditor randomly samples 50 accounts receivable, it is acceptable to use the normal approximation to estimate
the probability that fewer than two will contain errors.

True False

23. The normal distribution is a good approximation to the binomial if both π ≥ 10 and n ≥ 10.

True False

24. The normal distribution is a good approximation to the binomial if n = 200 and π = .03.

True False


True False

26. The exponential distribution can be either right-skewed or left-skewed, depending on λ

True False

27. The number of lightning strikes in a day in Miami is a continuous random variable.

True False

28. The area under a normal curve is 1 only if the distribution is standardized N(0, 1).

True False

29. The area under an exponential curve can exceed 1 because the distribution is right-skewed.

True False


30. A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous
uniform distribution from 10 ounces to 16 ounces, the average amount of water dispensed by the machine is:

A. 12 ounces.
B. 13 ounces.
C. 14 ounces.
D. 16 ounces.

uniform distribution from 10 ounces to 16 ounces, the standard deviation of the amount of water dispensed is
about:

A. 1.73 ounces.
B. 3.00 ounces.
C. 0.57 ounce.
D. 3.51 ounces.

uniform distribution from 10 ounces to 16 ounces, what is the probability that 13 or more ounces will be
dispensed in a given glass?

A. .1666
B. .3333
C. .5000
D. .6666

33. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. The mean
of this distribution is:

A. 30.5.
B. 31.5.
C. 32.5.
D. 33.5.

34. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. The
standard deviation of this distribution is approximately:

A. 52.1.
B. 32.5.
C. 6.85.
D. 7.22.

35. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. What is
P(30 ≤ X ≤ 40)?

A. .20
B. .40
C. .60
D. .80

36. The Excel function =800*RAND() would generate random numbers with standard deviation approximately
equal to:

A. 200.
B. 188.
C. 231.
D. 400.

equal to

A. 13.33.
B. 20.00.
C. 11.55.
D. 19.27.

38. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting more than 0.5 hour
for the next arrival is:

A. .2407.
B. .1653.
C. .1222.
D. .5000.

39. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting less than 0.5 hour
for the next arrival is:

A. .7122.
B. .8105.
C. .8347.
D. .7809.

40. If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability of waiting more than 1.5
minutes for the next arrival is:

A. .0202.
B. .0122.
C. .0535.
D. .2564.

41. If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability of waiting less than 1
minute for the next arrival is:

A. .2019.
B. .7104.
C. .8812.
D. .7981.

42. Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of the Ornithorhynchus."
Bob said, "Oh, good, my score is in the top 10 percent." Assuming a normal distribution of scores, is Bob
right?

A. Yes.
B. No.
C. Must have n to answer.

43. The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14
inches and a standard deviation of 3 inches. What proportion of brook trout caught will be between 12 and 18
inches in length?

A. .6563
B. .6826
C. .2486
D. .4082

inches and a standard deviation of 3 inches. The first quartile for the lengths of brook trout would be:

A. 16.01 inches.
B. 11.00 inches.
C. 11.98 inches.
D. 10.65 inches.

inches and a standard deviation of 3 inches. What lower limit should the State Game Commission set on length
if it is desired that 80 percent of the catch may be kept by fishers?

A. 12.80 inches
B. 11.48 inches
C. 12.00 inches
D. 9.22 inches

46. In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25
minutes and a standard deviation of 4 minutes. What percentage of customers require less than 32 minutes for a
simple haircut?

A. 95.99 percent
B. 99.45 percent
C. 97.72 percent
D. 45.99 percent

minutes and a standard deviation of 4 minutes. The slowest quartile of customers will require longer than how
many minutes for a simple haircut?

A. 3(n + 1)/4 minutes

B. 26 minutes
C. 25.7 minutes
D. 27.7 minutes

minutes and a standard deviation of 4 minutes. For a simple haircut, the middle 90 percent of the customers will
require:

A. between 18.4 and 31.6 minutes.

B. between 19.9 and 30.1 minutes.
C. between 20.0 and 30.0 minutes.
D. between 17.2 and 32.8 minutes.

49. The area under the normal curve between z = 0 and z = 1 is ______________ the area under the normal curve
between z = 1 and z = 2.

A. less than
B. greater than
C. equal to

50. The price-earnings ratio for firms in a given industry follows the normal distribution. In this industry, a firm
whose price-earnings ratio has a standardized value of z = 1.00 is approximately in the highest ______ percent
of firms in the industry.

A. 16 percent
B. 34 percent
C. 68 percent
D. 75 percent

51. A student's grade on an examination was transformed to a z value of 0.67. Assuming a normal distribution, we
know that she scored approximately in the top:

A. 15 percent.
B. 50 percent.
C. 40 percent.
D. 25 percent.

52. The MPG (miles per gallon) for a certain compact car is normally distributed with a mean of 31 and a standard
deviation of 0.8. What is the probability that the MPG for a randomly selected compact car would be less than
32?

A. 0.3944
B. 0.8944
C. 0.1056
D. 0.5596

53. The probability is .80 that a standard normal random variable is between -z and +z. The value of z is
approximately:

A. 1.28.
B. 1.35.
C. 1.96.
D. 1.45.

54. The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a
mean of 40 minutes and a standard deviation of 10 minutes. What proportion of the citizens will require less
than one hour?

A. 0.4772
B. 0.9772
C. 0.9974
D. 0.9997

mean of 40 minutes and a standard deviation of 10 minutes. The slowest 10 percent of the citizens would need
at least how many minutes to complete the form?

A. 27.2
B. 35.8
C. 52.8
D. 59.6

mean of 40 minutes and a standard deviation of 10 minutes. What is the third quartile (in minutes) for the time
required to complete the form?

A. 44.75
B. 46.75
C. 47.50
D. 52.50

57. Exam scores were normal in BIO 200. Jason's exam score was one standard deviation above the mean. What
percentile is he in?

A. 68th
B. 75th
C. 78th
D. 84th

58. Compared to the area between z = 1.00 and z = 1.25, the area between z = 2.00 and z = 2.25 in the standard
normal distribution will be:

A. smaller.
B. larger.
C. the same.
D. impossible to compare without knowing μ and σ.

59. A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are
normally distributed with a mean of 460 and standard deviation of 80. What fraction of applicants would you
expect to have scores of 600 or above?

A. 0.0401
B. 0.4599
C. 0.5401
D. 0.0852

normally distributed with a mean of 460 and standard deviation of 80. What fraction of the applicants would
you expect to have a score of 400 or above?

A. 0.2734
B. 0.7734
C. 0.7266
D. 0.7500

normally distributed with a mean of 460 and standard deviation of 80. The top 2.5 percent of the applicants
would have a score of at least (choose the nearest integer):

A. 606.
B. 617.
C. 600.
D. 646.

62. If the random variable Z has a standard normal distribution, then P(1.25 ≤ Z ≤ 2.17) is:

A. 0.0906.
B. 0.9200.
C. 0.4700.
D. 0.3944.

63. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.37) is:

A. 0.9147.
B. 0.4147.
C. 0.5016.
D. 0.0853.

64. Assume that X is normally distributed with a mean μ = $64. Given that P(X ≥ $75) = 0.2981, we can calculate
that the standard deviation of X is approximately:

A. $20.76.
B. $13.17.
C. $5.83.
D. $7.05.

65. The standard deviation of a normal random variable X is $20. Given that P(X ≤ $10) = 0.1841. From this we
can determine that the mean of the distribution is equal to:

A. $13.
B. $26.
C. $20.
D. $28.

66. The random variable X is normally distributed with mean of 80 and variance of 36. The 67th percentile of the
distribution is:

A. 72.00.
B. 95.84.
C. 90.00.
D. 82.64.

67. The area under the normal curve between the 20th and 70th percentiles is equal to:

A. 0.7000.
B. 0.5000.
C. 0.9193.

68. The variable in a normal distribution can assume any value between

A. -3 and +3.

B. -4 and +4.
C. -1 and +1.
D. -∞ and +∞.

69. What are the mean and standard deviation for the standard normal distribution?

A. μ = 0, σ = 0
B. μ = 1, σ = 1
C. μ = 1, σ = 0
D. μ = 0, σ = 1

70. Any two normal curves are the same except for their:

A. standard deviations.
B. means.
C. standard deviations and means.
D. standard deviations, means, skewness, and kurtosis.

71. Light bulbs are normally distributed with an average lifetime of 1000 hours and a standard deviation of 250
hours. The probability that a light bulb picked at random will last less than 1500 hours is about:

A. 97.72 percent.
B. 95.44 percent.
C. 75.00 percent.
D. 68.00 percent.

72. To convert a normally distributed variable X into a standard Z score we would:

A. subtract the mean from the original observation and divide the result by the variance.
B. subtract the mean from the original observation and divide the result by the standard deviation.
C. add the mean and the original observation, then divide by the variance.
D. subtract the mean from the standard deviation and divide by the variance.

73. Regarding continuous probability distributions, which statement is incorrect?

A. The triangular distribution may be skewed left or right.

B. The uniform distribution is never skewed.
C. The normal distribution is sometimes skewed.
D. The exponential distribution is always skewed right.

74. Which model best describes your waiting time until you get the next nonworking web URL ("This page cannot
be displayed") as you click on various websites for Florida condo rentals?

A. Triangular
B. Uniform
C. Normal
D. Exponential

75. On average, a major earthquake (Richter scale 6.0 or above) occurs 3 times a decade in a certain California
county. What is the probability that less than six months will pass before the next earthquake?

A. .1393
B. .8607
C. .0952
D. .9048

76. If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90th percentile of
waiting times to the next shutdown will be:

A. 20,180 hours.
B. 28,782 hours.
C. 23,733 hours.
D. 18,724 hours.

77. On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office.
What is the probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is
discovered?

A. .1353
B. .6044
C. .7389
D. .8647

78. If the mean time between unscheduled maintenance of LCD displays in a hospital's CT scan facility is 4,000
operating hours, what is the probability of unscheduled maintenance in the next 5,000 hours?

A. .8000
B. .7135
C. .2865
D. .5000

79. A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. What is
the probability that less than 6 minutes will elapse before the next breakdown?

A. .8187
B. .0488
C. .1813
D. .2224

80. A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. The
median time between breakdowns is:

A. 30.0 minutes.
B. 35.7 minutes.
C. 25.4 minutes.
D. 20.8 minutes.

81. Which probability model is most appropriate to describe the waiting time (working days) until an office
photocopier breaks down (i.e., requires unscheduled maintenance)?

A. Normal
B. Uniform
C. Exponential
D. Poisson

82. Bob's z-score for the last exam was -1.15 in FIN 417, "Capital Budgeting Strategies." Bob said, "Yipe! My
score is within the bottom quartile." Assuming a normal distribution, is Bob right?

A. Yes
B. No
C. Must know the class size to answer

83. Exam scores were normal in MIS 200. Jason's exam score was 1.41 standard deviations above the mean. What

A. 68th.
B. 75th.
C. 84th.
D. 92nd.


A. smaller
B. larger
C. the same

85. If GMAT scores for applicants at Oxnard Graduate School of Business are N(500, 50), then the top 5 percent of
the applicants would have a score of at least (choose the nearest integer):

A. 575.
B. 582.
C. 601.
D. 608.


A. 0.1091.
B. 0.1203.
C. 0.2118.
D. 0.3944.


A. 0.9573.
B. 0.0446.
C. 0.5016.
D. 0.0427.

88. Excel's =100*RAND() function produces continuous random numbers that are uniformly distributed between 0
and 100. The standard deviation of this distribution is approximately:

A. 50.00.
B. 28.87.
C. 33.33.
D. 25.00.

89. Excel's =RAND() function produces random numbers that are uniformly distributed between 0 and 1. The mean
of this distribution is approximately

A. .5000.
B. .2500.
C. .3333.
D. .2887.

90. Excel's =RAND() function produces random numbers that are uniformly distributed from 0 to 1. What is the
probability that the random number exceeds .75?

A. 75 percent
B. 50 percent
C. 25 percent

91. Which is the correct Excel formula for the 80th percentile of a distribution that is N(475, 33)?

A. =NORM.DIST(80,475,33,1)
B. =NORM.INV(0.80,475,33)
C. =NORM.S.INV((80-475)/33)

92. If arrivals follow a Poisson distribution with mean 1.2 arrivals per minute, find the 75th percentile of waiting
times until the next arrival (i.e., 75 percent below).

A. 1.155 minutes (69.3 seconds)

B. 0.240 minute (14.4 seconds)
C. 1.919 minutes (115.1 seconds)

93. A software developer makes 175 phone calls to its current customers. There is an 8 percent chance of reaching a
given customer (instead of a busy signal, no answer, or answering machine). The normal approximation of the
probability of reaching at least 20 customers is:

A. .022.
B. .007.
C. .063.
D. .937.

94. For Gardyloo Manufacturing, the true proportion of accounts receivable with some kind of error is .20. If an
auditor randomly samples 225 accounts receivable, what is the approximate normal probability that 39 or fewer

A. .1797
B. .2097
C. .1587
D. .0544

95. A letter is mailed to a sample of 500 homeowners. Based on past experience, the probability of an undeliverable
letter is 0.06. The normal approximation to the binomial probability of 40 or more undeliverable letters is:

A. 0.9632
B. 0.0368
C. 0.2305
D. 0.7695

96. In a T-F exam with 100 questions, passing requires a score of at least 60. What is the approximate normal
probability that a "guesser" will score at least 60 points?

A. .0287
B. .4713
C. .0251
D. .0377

97. A multiple choice exam has 100 questions. Each question has five choices. What would be the approximate
probability that a "guesser" could achieve a score of 30 or more?

A. 0.0088
B. 0.0062
C. 0.0015
D. 0.4913

98. For which binomial distribution would a normal approximation be most acceptable?

A. n = 50, π = 0.05

B. n = 100, π = 0.04
C. n = 40, π = 0.25
D. n = 400, π = 0.02

99. Historically, the default rate on a certain type of commercial loan is 20 percent. If a bank makes 100 of these
loans, what is the approximate probability that at least 26 will result in default?

A. 0.2000
B. 0.0668
C. 0.0846
D. 0.0336

100. A company employs 300 employees. Each year, there is a 30 percent turnover rate for employees. We want to
do a normal approximation to the binomial distribution of the number of employees who leave each year. For
this normal approximation, the mean is ______ and the standard deviation is _____.

A. 90; 63
B. 90; 7.937
C. 90; 30
D. 90; 15

101. The probability that a rental car will be stolen is 0.001. If 25,000 cars are rented from Hertz, what is the normal
approximation to the probability that fewer than 20 will be stolen?

A. .2577
B. .1335
C. .1128
D. .8335

102. If adult male heights are normally distributed with a mean of 180 cm and a standard deviation of 7 cm, how
high should an aircraft lavatory door be to ensure that 99.9 percent of adult males will not have to stoop as they
enter?

A. 195.7 cm
B. 201.6 cm
C. 207.3 cm
D. 201.4 cm

103. TotCo is developing a new deluxe baby bassinet. If the length of a newborn baby is normally distributed with a
mean of 50 cm and a standard deviation of 5 cm, what should be the interior length of the bassinet to ensure
that 99 percent of newborn babies will fit, with a safety margin of 15 cm on each end of the bassinet?

A. 95.45 cm
B. 85.22 cm
C. 91.63 cm
D. 98.92 cm

104. The triangular distribution T(4, 12, 26) has a mean of:

A. 14.
B. 18.
C. 12.
D. 13.

105. The triangular distribution T(0, 10, 20) has a standard deviation of:

A. 4.082.
B. 3.775.
C. 3.024.
D. 2.994.


A. 23.
B. 30.
C. 33.
D. 35.


A. 9.498.
B. 9.225.
C. 8.498.
D. 7.710.


A. The triangular distribution always has a single mode.

B. The mean of the triangular distribution is (a + b + c)/3.
C. The triangular distribution is right-skewed.

109. Bob used a triangular distribution of T(20, 30, 61) to represent his daily commute time (minutes). Which
statement is incorrect?

A. The distribution is right-skewed.

B. The mode of the distribution exceeds the mean.
C. The mean of the distribution is 37.
D. The midrange of the distribution is 40.5.

110. Phyllis used a triangular distribution of T(10, 15, 20) to represent her daily commute time (minutes). Which


B. The mode of the distribution is at the mean.
D. The midrange of the distribution is 15.

111. In a continuous distribution:

A. P(X < 5) is the same as P(X ≤ 5).

B. P(X < 5) is less than P(X ≤ 5).
C. P(X < 5) is more than P(X ≤ 5).

112. In a continuous distribution the

A. PDF is usually higher than the CDF.

B. CDF is used to find left-tail probabilities.
C. PDF shows the area under the curve.
D. CDF is usually the same as the PDF.

113. If the mean waiting time for the next arrival is 12 minutes, what is the median waiting time?

A. 7.2 minutes
B. 8.3 minutes
C. 9.1 minutes
D. 12 minutes

114. If the mean waiting time for the next arrival is 18 minutes, what is the first quartile (25th percentile) for waiting
times?

A. 13 minutes
B. 7.9 minutes
C. 5.2 minutes
D. 3.1 minutes

115. Could this function be a PDF?

A. Yes.
B. No.
C. It depends on x.


A. Yes.
B. No.
C. It depends on x.

117. The ages of job applicants for a security guard position are uniformly distributed between 25 and 65. Could a
25-year-old job applicant be two standard deviations below the mean (or more than two standard deviations)?

A. Yes.
B. No.
C. Impossible to determine from given information.

118. The figure shows a standard normal N(0, 1) distribution. Find the shaded area.

A. .6444
B. .7514
C. .9245
D. .9850


A. .4400
B. .3300
C. .2998
D. .2502

120. The figure shows a standard normal N(0, 1) distribution. Find the z value for the shaded area.

A. -1.98
B. -1.87
C. -1.75
D. -1.62


A. -2.17
B. -2.09
C. -1.99
D. -1.94

122. The figure shows a normal N(400, 23) distribution. Find the approximate shaded area.

A. .0410
B. .0501
C. .0724
D. .0838


A. .3811
B. .3527
C. .2299
D. .1940

124. The figure shows a normal N(400, 23) distribution. Find the x value for the shaded area.

A. 379.1
B. 362.2
C. 355.7
D. 347.6


A. 412.9
B. 426.7
C. 436.2
D. 440.3

Chapter 07 Continuous Probability Distributions Answer Key


1. A continuous uniform distribution is always symmetric.

TRUE
The PDF is the same height for all X values.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform probabilities.
Topic: Uniform Continuous Distribution

2. The height and width of a continuous uniform distribution's PDF are the same.

FALSE
The PDF height must be 1/(b - a) so that the total area is unity.

Blooms: Remember
Difficulty: 1 Easy

3. A continuous uniform distribution U(0, 800) will have μ = 400 and σ = 230.94.

TRUE
Apply the formulas for the uniform distribution mean and standard deviation.

Blooms: Apply

4. A continuous uniform distribution U(100, 200) will have the same standard deviation as a continuous
uniform distribution U(200,300).

TRUE
In the standard deviation formula, (b - a)2 is the same for both these examples.

Blooms: Apply

5. For a continuous uniform distribution U(200, 400), the parameters are μ = 300 and σ = 100.

FALSE
The standard deviation is [(400 - 200)2/12]1/2 = 57.7.

Blooms: Apply

6. The exponential distribution describes the number of arrivals per unit of time.

FALSE
Arrivals per unit of time would be Poisson (but waiting time is exponential).

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given x.
Topic: Exponential Distribution

7. The exponential distribution is always skewed right.

TRUE
The PDF clearly shows extreme right-skewness.

Blooms: Remember
Difficulty: 1 Easy

8. If arrivals follow a Poisson distribution, waiting times follow the exponential distribution.

TRUE
Poisson arrivals (discrete) imply exponential waiting times (continuous).

Blooms: Remember
Difficulty: 1 Easy

9. The triangular distribution is used in "what-if" analysis for business planning.

TRUE
Simplicity in visualizing planning scenarios is an attraction of the triangular distribution.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis (optional).
Topic: Triangular Distribution (Optional)

10. The triangular distribution is symmetric.

FALSE
Triangular distribution is symmetric only if the mode is at the axis midpoint.

Blooms: Remember
Difficulty: 1 Easy

11. The triangular distribution T(0, 10, 20) is skewed left.

FALSE
Only left-skewed if the mode is right of the axis midpoint.

Blooms: Apply

12. A triangular distribution can be skewed either left or right.

TRUE
Left-skewed if the mode is right of the axis midpoint, and vice versa.

Blooms: Remember
Difficulty: 1 Easy

13. For a continuous random variable, the total area beneath the PDF will be greater than zero but less than one.

FALSE
If it is a PDF, the total area must be 1.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define a continuous random variable.
Topic: Continuous Probability Distributions

14. The exponential distribution is continuous and the Poisson distribution is discrete, yet the two distributions
are closely related.

TRUE
Poisson arrivals (discrete) imply exponential waiting times (continuous).

Blooms: Understand

15. The mean, median, and mode of a normal distribution will always be the same.

TRUE
A normal distribution is perfectly symmetric.

Blooms: Remember
Learning Objective: 07-03 Know the form and parameters of the normal distribution.
Topic: Normal Distribution

16. There is a simple formula for normal areas, but we prefer a table for greater accuracy.

FALSE
We have a formula for the PDF, but there is no exact formula for areas under the curve.

Blooms: Understand

17. Normal distributions differ only in their means and variances.

TRUE
All normal distributions look the same except for scaling.

Blooms: Understand
Difficulty: 1 Easy

18. Any normal distribution has a mean of 0 and a standard deviation of 1.

FALSE
Only the standardized normal is N(0, 1).

Blooms: Remember
Difficulty: 1 Easy

19. We would use a normal distribution to model the waiting time until the next Florida hurricane strike.

FALSE
Hurricane arrivals might be regarded as Poisson events, so waiting times are exponential.

Blooms: Apply

20. Experience suggests that 4 percent of all college students had a tonsillectomy. In a sample of 300 college
students, we need to find the probability that at least 10 had a tonsillectomy. It is acceptable to use the
normal distribution to estimate this probability.

TRUE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is the case in this example.

Blooms: Apply
Learning Objective: 07-06 Use the normal approximation to a binomial or a Poisson.
Topic: Normal Approximations

21. The normal is a good approximation to the binomial when n is greater than or equal to 10.

FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10.

Blooms: Apply
Difficulty: 1 Easy

22. The true proportion of accounts receivable with some kind of error is 4 percent for Venal Enterprises. If an
auditor randomly samples 50 accounts receivable, it is acceptable to use the normal approximation to
estimate the probability that fewer than two will contain errors.

FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is not fulfilled in this case.

Blooms: Apply

23. The normal distribution is a good approximation to the binomial if both π ≥ 10 and n ≥ 10.

FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10.

Blooms: Apply
Difficulty: 1 Easy


FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is not fulfilled in this case.

Blooms: Apply
Difficulty: 1 Easy


TRUE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is fulfilled in this case.

Blooms: Apply
Difficulty: 1 Easy

26. The exponential distribution can be either right-skewed or left-skewed, depending on λ

FALSE
The PDF of the exponential shows that it is always right-skewed.

Blooms: Understand
Difficulty: 1 Easy

27. The number of lightning strikes in a day in Miami is a continuous random variable.

FALSE
The "number of …" anything is discrete.

Blooms: Understand
Difficulty: 1 Easy

28. The area under a normal curve is 1 only if the distribution is standardized N(0, 1).

FALSE
Any normal distribution has a total area of one under the PDF.

Blooms: Remember
Difficulty: 1 Easy
Topic: Standard Normal Distribution

29. The area under an exponential curve can exceed 1 because the distribution is right-skewed.

FALSE
If it's a PDF, the total area under the PDF is one.

Blooms: Understand


uniform distribution from 10 ounces to 16 ounces, the average amount of water dispensed by the machine
is:

A. 12 ounces.
B. 13 ounces.
C. 14 ounces.
D. 16 ounces.
The mean is halfway between the end points of the distribution.

Blooms: Apply
Difficulty: 1 Easy

uniform distribution from 10 ounces to 16 ounces, the standard deviation of the amount of water dispensed
is about:

A. 1.73 ounces.

B. 3.00 ounces.
C. 0.57 ounce.
D. 3.51 ounces.

Blooms: Apply

uniform distribution from 10 ounces to 16 ounces, what is the probability that 13 or more ounces will be
dispensed in a given glass?

A. .1666
B. .3333
C. .5000
D. .6666
Half the area is above 13.

Blooms: Apply

mean of this distribution is:

A. 30.5.
B. 31.5.
C. 32.5.
D. 33.5.
The mean is halfway between the end points of the distribution.

Blooms: Apply
Difficulty: 1 Easy

standard deviation of this distribution is approximately:

A. 52.1.
B. 32.5.
C. 6.85.
D. 7.22.

Blooms: Apply

35. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. What is
P(30 ≤ X ≤ 40)?

A. .20
B. .40
C. .60
D. .80
The desired area is 10/25 = .40.

Blooms: Apply

equal to:

A. 200.
B. 188.
C. 231.
D. 400.

Blooms: Apply

equal to

A. 13.33.
B. 20.00.
C. 11.55.
D. 19.27.

Blooms: Apply

38. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting more than 0.5
hour for the next arrival is:

A. .2407.
B. .1653.
C. .1222.
D. .5000.
P(X > .50) = exp(-3.6 × 0.50) = .1653.

Blooms: Apply

39. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting less than 0.5
hour for the next arrival is:

A. .7122.
B. .8105.
C. .8347.
D. .7809.
P(X < .50) = 1 - exp(-3.6 × 0.50) = 1 - .1653 = .8347.

Blooms: Apply

40. If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability of waiting more than
1.5 minutes for the next arrival is:

A. .0202.
B. .0122.
C. .0535.
D. .2564.
P(X > 1.5) = exp(-2.6 × 1.50) = .0202.

Blooms: Apply

41. If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability of waiting less than 1
minute for the next arrival is:

A. .2019.
B. .7104.
C. .8812.
D. .7981.
(X < 1) = 1 - exp(-1.6 × 1) = 1 - .2019 = .7981.

Blooms: Apply

42. Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of the
Ornithorhynchus." Bob said, "Oh, good, my score is in the top 10 percent." Assuming a normal distribution
of scores, is Bob right?

A. Yes.
B. No.
C. Must have n to answer.
P(Z < 1.52) = .9357.

Blooms: Apply
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or Excel.

inches and a standard deviation of 3 inches. What proportion of brook trout caught will be between 12 and
18 inches in length?

A. .6563
B. .6826
C. .2486
D. .4082
P(12 < X < 18) = P(-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using Excel.

Blooms: Apply

inches and a standard deviation of 3 inches. The first quartile for the lengths of brook trout would be:

A. 16.01 inches.

B. 11.00 inches.
C. 11.98 inches.
D. 10.65 inches.
Using Excel =NORM.INV(.25,14,3) = 11.98, or Q1 = 14 - 0.675(3) = 11.975 using Appendix C.

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or Excel.

inches and a standard deviation of 3 inches. What lower limit should the State Game Commission set on
length if it is desired that 80 percent of the catch may be kept by fishers?

A. 12.80 inches

B. 11.48 inches
C. 12.00 inches
D. 9.22 inches
Using Excel =NORM.INV(.20,14,3) = 11.475, or X = 14 - 0.84(3) = 11.48 using Appendix C.

Blooms: Apply
Difficulty: 3 Hard

minutes and a standard deviation of 4 minutes. What percentage of customers require less than 32 minutes
for a simple haircut?

A. 95.99 percent

B. 99.45 percent
C. 97.72 percent
D. 45.99 percent
Using Excel =NORMDIST(32,25,4,1) = 0.9599, or use z = (32 - 25)/4 = 1.75 with Appendix C.

Blooms: Apply

minutes and a standard deviation of 4 minutes. The slowest quartile of customers will require longer than
how many minutes for a simple haircut?

A. 3(n + 1)/4 minutes

B. 26 minutes
C. 25.7 minutes
D. 27.7 minutes
Using Excel =NORM.INV(.75,25,4) = 27.698, or Q3 = 25 + 0.675(4) = 27.7 using Appendix C.

Blooms: Apply

minutes and a standard deviation of 4 minutes. For a simple haircut, the middle 90 percent of the customers
will require:

A. between 18.4 and 31.6 minutes.

B. between 19.9 and 30.1 minutes.
C. between 20.0 and 30.0 minutes.
D. between 17.2 and 32.8 minutes.
The 90 percent range is μ ± 1.645σ.

Blooms: Apply

49. The area under the normal curve between z = 0 and z = 1 is ______________ the area under the normal
curve between z = 1 and z = 2.

A. less than

B. greater than
C. equal to
The standard normal PDF grows closer to the axis as z increases to the right of zero.

Blooms: Apply
Difficulty: 1 Easy

50. The price-earnings ratio for firms in a given industry follows the normal distribution. In this industry, a firm
whose price-earnings ratio has a standardized value of z = 1.00 is approximately in the highest ______
percent of firms in the industry.

A. 16 percent
B. 34 percent
C. 68 percent
D. 75 percent
About 15.86 percent of the area is above one standard deviation.

Blooms: Apply

51. A student's grade on an examination was transformed to a z value of 0.67. Assuming a normal distribution,
we know that she scored approximately in the top:

A. 15 percent.
B. 50 percent.
C. 40 percent.
D. 25 percent.
P(Z > 0.67) = 1 - P(Z < 0.67) = 1 - .2514 = .7486.

Blooms: Apply

52. The MPG (miles per gallon) for a certain compact car is normally distributed with a mean of 31 and a
standard deviation of 0.8. What is the probability that the MPG for a randomly selected compact car would
be less than 32?

A. 0.3944
B. 0.8944
C. 0.1056
D. 0.5596
P(X < 32) = P(Z < 1.25) = .8944.

Blooms: Apply

53. The probability is .80 that a standard normal random variable is between -z and +z. The value of z is
approximately:

A. 1.28.
B. 1.35.
C. 1.96.
D. 1.45.
For tail areas of .1000 we would use z = 1.282.

Blooms: Apply

mean of 40 minutes and a standard deviation of 10 minutes. What proportion of the citizens will require less
than one hour?

A. 0.4772
B. 0.9772
C. 0.9974
D. 0.9997
P(X < 60) = P(Z < 2.00) = .9772.

Blooms: Apply

mean of 40 minutes and a standard deviation of 10 minutes. The slowest 10 percent of the citizens would
need at least how many minutes to complete the form?

A. 27.2
B. 35.8
C. 52.8
D. 59.6
Using Excel =NORM.INV(.90,40,10) = 52.82, or 40 + 1.282(10) = 52.82 using Appendix C.

Blooms: Apply
Difficulty: 3 Hard

mean of 40 minutes and a standard deviation of 10 minutes. What is the third quartile (in minutes) for the
time required to complete the form?

A. 44.75
B. 46.75
C. 47.50
D. 52.50
Using Excel =NORM.INV(.75,40,10) = 46.75, or Q3 = 40 + 0.675(10) = 46.75 using Appendix C.

Blooms: Apply
Difficulty: 3 Hard

57. Exam scores were normal in BIO 200. Jason's exam score was one standard deviation above the mean. What

A. 68th
B. 75th
C. 78th
D. 84th
About 15.87 percent of the area lies above one standard deviation.

Blooms: Apply
Difficulty: 1 Easy


A. smaller.
B. larger.
C. the same.
D. impossible to compare without knowing μ and σ.
The normal PDF approaches the axis as z increases beyond zero.

Blooms: Apply

59. A large number of applicants for admission to graduate study in business are given an aptitude test. Scores
are normally distributed with a mean of 460 and standard deviation of 80. What fraction of applicants would
you expect to have scores of 600 or above?

A. 0.0401
B. 0.4599
C. 0.5401
D. 0.0852
P(X > 600) = P(Z > 1.75) = .0401.

Blooms: Apply

are normally distributed with a mean of 460 and standard deviation of 80. What fraction of the applicants
would you expect to have a score of 400 or above?

A. 0.2734
B. 0.7734
C. 0.7266
D. 0.7500
P(X > 400) = P(Z > -0.75) = .7734.

Blooms: Apply

are normally distributed with a mean of 460 and standard deviation of 80. The top 2.5 percent of the
applicants would have a score of at least (choose the nearest integer):

A. 606.
B. 617.
C. 600.
D. 646.
Using z = 1.96, we get X = 460 + 1.96 × 80 = 616.8.

Blooms: Apply


A. 0.0906.
B. 0.9200.
C. 0.4700.
D. 0.3944.
P(Z ≤ 2.17) - P(Z ≤ 1.25) = .0906.

Blooms: Apply


A. 0.9147.
B. 0.4147.
C. 0.5016.
D. 0.0853.
From Appendix C we get the left-tail area of .0853.

Blooms: Apply
Difficulty: 1 Easy

64. Assume that X is normally distributed with a mean μ = $64. Given that P(X ≥ $75) = 0.2981, we can
calculate that the standard deviation of X is approximately:

A. $20.76.
B. $13.17.
C. $5.83.
D. $7.05.
For a right-tail area of .2981, we need z = -.53. So with x = 75, we set z = (x - μ)/σ and solve for σ.

Blooms: Apply
Difficulty: 3 Hard

65. The standard deviation of a normal random variable X is $20. Given that P(X ≤ $10) = 0.1841. From this we
can determine that the mean of the distribution is equal to:

A. $13.
B. $26.
C. $20.
D. $28.
For a left-tail area of .1841, we need z = -.90. With x = 10, we set z = (x - μ)/σ and solve for μ.

Blooms: Apply
Difficulty: 3 Hard

66. The random variable X is normally distributed with mean of 80 and variance of 36. The 67th percentile of the
distribution is:

A. 72.00.
B. 95.84.
C. 90.00.
D. 82.64.
Since P(Z < 0.44) = .6700, (from Appendix C), we get 80 + 0.44(6) = 82.64.

Blooms: Apply

67. The area under the normal curve between the 20th and 70th percentiles is equal to:

A. 0.7000.
B. 0.5000.
C. 0.9193.
Logically, this must be .70 - .20 = .50, as you can verify from Appendix C.

Blooms: Apply
Difficulty: 3 Hard

68. The variable in a normal distribution can assume any value between

A. -3 and +3.

B. -4 and +4.
C. -1 and +1.
D. -∞ and +∞.
Almost all the area is within -3 and +3, but the curve never quite touches the z-axis.

Blooms: Remember
Difficulty: 1 Easy

69. What are the mean and standard deviation for the standard normal distribution?

A. μ = 0, σ = 0
B. μ = 1, σ = 1
C. μ = 1, σ = 0
D. μ = 0, σ = 1
It's a standardized normal distribution, so the mean must be zero.

Blooms: Remember
Difficulty: 1 Easy

70. Any two normal curves are the same except for their:

A. standard deviations.

B. means.
C. standard deviations and means.
D. standard deviations, means, skewness, and kurtosis.
We write N(μ, σ) to show the similar form of all normals.

Blooms: Remember
Difficulty: 1 Easy

71. Light bulbs are normally distributed with an average lifetime of 1000 hours and a standard deviation of 250
hours. The probability that a light bulb picked at random will last less than 1500 hours is about:

A. 97.72 percent.

B. 95.44 percent.
C. 75.00 percent.
D. 68.00 percent.
P(Z < 1500) = P(Z < 2.00) = .9772 from Appendix C (or from Excel).

Blooms: Apply

72. To convert a normally distributed variable X into a standard Z score we would:

A. subtract the mean from the original observation and divide the result by the variance.
B. subtract the mean from the original observation and divide the result by the standard deviation.
C. add the mean and the original observation, then divide by the variance.
D. subtract the mean from the standard deviation and divide by the variance.
Review the z-score transformation.

Blooms: Understand
Difficulty: 1 Easy

73. Regarding continuous probability distributions, which statement is incorrect?

A. The triangular distribution may be skewed left or right.

B. The uniform distribution is never skewed.
C. The normal distribution is sometimes skewed.
D. The exponential distribution is always skewed right.
Review the characteristics of these four distributions.

Blooms: Understand

74. Which model best describes your waiting time until you get the next nonworking web URL ("This page
cannot be displayed") as you click on various websites for Florida condo rentals?

A. Triangular
B. Uniform
C. Normal
D. Exponential
Waiting time until the next event resembles an exponential distribution.

Blooms: Understand
Difficulty: 1 Easy

75. On average, a major earthquake (Richter scale 6.0 or above) occurs 3 times a decade in a certain California
county. What is the probability that less than six months will pass before the next earthquake?

A. .1393
B. .8607
C. .0952
D. .9048
Set λ = 3/120 = 0.025 earthquake/month so P(X < 6) = 1 - exp(-0.025 × 6) = 1 - .8607 = .1393.

Blooms: Apply
Difficulty: 3 Hard

76. If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90th percentile of
waiting times to the next shutdown will be:

A. 20,180 hours.

B. 28,782 hours.
C. 23,733 hours.
D. 18,724 hours.
Set λ = 1/12500 and solve for x in left-tail area of 1 - exp(-λx) = .90 by taking logs of both sides.

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Solve for x for a given exponential probability.

77. On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS
office. What is the probability that less than 30 minutes will elapse before the next fraudulent corporate tax
return is discovered?

A. .1353
B. .6044
C. .7389
D. .8647
P(X < 30) = 1 - exp(-λx) = 1 - exp(-(1/15) × 30) = 1 - .1353 = .8647.

Blooms: Apply
Difficulty: 3 Hard

78. If the mean time between unscheduled maintenance of LCD displays in a hospital's CT scan facility is 4,000
operating hours, what is the probability of unscheduled maintenance in the next 5,000 hours?

A. .8000
B. .7135
C. .2865
D. .5000
P(X < 5000) = 1 - exp(-λx) = 1 - exp(-(1/4000) × 5000) = 1 - .2865 = .7135.

Blooms: Apply

79. A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns.
What is the probability that less than 6 minutes will elapse before the next breakdown?

A. .8187
B. .0488
C. .1813
D. .2224
(X < 6) = 1 - exp(-λx) = 1 - exp(-(1/30) × 6) = 1 - .8187 = .1813.

Blooms: Apply
Difficulty: 3 Hard

80. A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. The
median time between breakdowns is:

A. 30.0 minutes.

B. 35.7 minutes.
C. 25.4 minutes.
D. 20.8 minutes.
Set λ = 1/30 and solve for x in right-tail area of 1 - exp(-λx) = .50 by taking logs of both sides.

Blooms: Apply
Difficulty: 3 Hard

81. Which probability model is most appropriate to describe the waiting time (working days) until an office
photocopier breaks down (i.e., requires unscheduled maintenance)?

A. Normal
B. Uniform
C. Exponential
D. Poisson
Poisson breakdowns suggest exponential waiting time.

Blooms: Apply

82. Bob's z-score for the last exam was -1.15 in FIN 417, "Capital Budgeting Strategies." Bob said, "Yipe! My
score is within the bottom quartile." Assuming a normal distribution, is Bob right?

A. Yes
B. No
C. Must know the class size to answer
The bottom quartile would be below z = -.675 so Bob is indeed below that point.

Blooms: Apply

83. Exam scores were normal in MIS 200. Jason's exam score was 1.41 standard deviations above the mean.
What percentile is he in?

A. 68th.
B. 75th.
C. 84th.
D. 92nd.
P(Z < 1.41) = .9207.

Blooms: Apply
Difficulty: 1 Easy


A. smaller
B. larger
C. the same
The normal PDF approaches the axis as z increases beyond zero, so areas get smaller.

Blooms: Apply

85. If GMAT scores for applicants at Oxnard Graduate School of Business are N(500, 50), then the top 5
percent of the applicants would have a score of at least (choose the nearest integer):

A. 575.
B. 582.
C. 601.
D. 608.
The top 5 percent would require z = 1.645, so x = 500 + 1.645(50) = 582.25.

Blooms: Apply


A. 0.1091.
B. 0.1203.
C. 0.2118.
D. 0.3944.
Subtract P(Z ≤ 2.26) - P(Z ≤ 1.17).

Blooms: Apply


A. 0.9573.
B. 0.0446.
C. 0.5016.
D. 0.0427.
Use Appendix C or Excel =NORM.S.DIST(-1.72,1).

Blooms: Apply
Difficulty: 1 Easy

88. Excel's =100*RAND() function produces continuous random numbers that are uniformly distributed
between 0 and 100. The standard deviation of this distribution is approximately:

A. 50.00.
B. 28.87.
C. 33.33.
D. 25.00.
The standard deviation of a uniform is [(b - a)2/12]1/2 = [(100 - 0)2/12]1/2.

Blooms: Apply

89. Excel's =RAND() function produces random numbers that are uniformly distributed between 0 and 1. The
mean of this distribution is approximately

A. .5000.
B. .2500.
C. .3333.
D. .2887.
The mean is halfway between the end points.

Blooms: Apply
Difficulty: 1 Easy

90. Excel's =RAND() function produces random numbers that are uniformly distributed from 0 to 1. What is the
probability that the random number exceeds .75?

A. 75 percent
B. 50 percent
C. 25 percent
This is the upper 25 percent.

Blooms: Apply
Difficulty: 1 Easy

91. Which is the correct Excel formula for the 80th percentile of a distribution that is N(475, 33)?

A. =NORM.DIST(80,475,33,1)
B. =NORM.INV(0.80,475,33)
C. =NORM.S.INV((80-475)/33)
Review Excel functions in Appendix J.

AACSB: Technology
Blooms: Remember

92. If arrivals follow a Poisson distribution with mean 1.2 arrivals per minute, find the 75th percentile of waiting
times until the next arrival (i.e., 75 percent below).

A. 1.155 minutes (69.3 seconds)

B. 0.240 minute (14.4 seconds)
C. 1.919 minutes (115.1 seconds)
Set λ = 1.2 and solve for x in right-tail area of exp(-λx) = .25 by taking logs of both sides.

Blooms: Apply
Difficulty: 3 Hard

93. A software developer makes 175 phone calls to its current customers. There is an 8 percent chance of
reaching a given customer (instead of a busy signal, no answer, or answering machine). The normal
approximation of the probability of reaching at least 20 customers is:

A. .022.
B. .007.
C. .063.
D. .937.
Set n = 175 and π = .08. Calculate μ = nπ = (175)(.08) = 14 and σ = [nπ(1 - π)]1/2 = [175(.08)(1 - .08)]1/2 =
3.588872. Use x = 19.5 (with the continuity correction) and calculate the binomial P(X ≥ 20) ≈ P(z ≥
1.532515) using z = (x - μ)/σ = 1.532515.

Blooms: Apply
Difficulty: 3 Hard

94. For Gardyloo Manufacturing, the true proportion of accounts receivable with some kind of error is .20. If an
auditor randomly samples 225 accounts receivable, what is the approximate normal probability that 39 or
fewer will contain errors?

A. .1797
B. .2097
C. .1587
D. .0544
Set μ = nπ and σ = [nπ(1 - π)]1/2 and convert x = 39.5 (using the continuity correction) to a z score with z = (x
- μ)/σ. Set n = 225 and π = .20. Calculate μ = nπ = (225)(.20) = 45 and σ = [nπ(1 - π)]1/2 = [225(.20)(1 - .
20)]1/2 = 6.000. Use x = 39.5 (with the continuity correction) and calculate the binomial P(X ≤ 39) ≈ P(z ≤
-.916667) using z = (x - μ)/σ = -.916667.

Blooms: Apply
Difficulty: 3 Hard

95. A letter is mailed to a sample of 500 homeowners. Based on past experience, the probability of an
undeliverable letter is 0.06. The normal approximation to the binomial probability of 40 or more
undeliverable letters is:

A. 0.9632
B. 0.0368
C. 0.2305
D. 0.7695
Set n = 500 and π = .06. Calculate μ = nπ = (500)(.06) = 30 and σ = [nπ(1 - π)]1/2 = [500(.06)(1 - .06)]1/2 =
5.31037. Use x = 39.5 (with the continuity correction) and calculate the binomial P(X ≥ 40) ≈ P(z ≥
1.78895) using z = (x - μ)/σ = 1.78895.

Blooms: Apply
Difficulty: 3 Hard

96. In a T-F exam with 100 questions, passing requires a score of at least 60. What is the approximate normal
probability that a "guesser" will score at least 60 points?

A. .0287
B. .4713
C. .0251
D. .0377
A guesser would have a 50 percent chance of a correct answer, so we set π = .50. There are n = 100
questions, so we calculate μ = nπ = (100)(.50) = 50 and σ = [nπ(1 - π)]1/2 = [100(.50)(1 - .50)]1/2 = 5. Use x =
59.5 (with the continuity correction) and calculate the binomial P(X ≥ 60) ≈ P(z ≥ 1.90) using z = (x - μ)/σ =
1.90.

Blooms: Apply
Difficulty: 3 Hard

97. A multiple choice exam has 100 questions. Each question has five choices. What would be the approximate
probability that a "guesser" could achieve a score of 30 or more?

A. 0.0088
B. 0.0062
C. 0.0015
D. 0.4913
A guesser would have a 20 percent chance of a correct answer (1 out of 5), so we set π = .20. There are n =
100 questions, so we calculate μ = nπ = (100)(.20) = 20 and σ = [nπ(1 - π)]1/2 = [100(.20)(1 - .20)]1/2 = 4. Use
x = 29.5 (with the continuity correction) and calculate the binomial P(X ≥ 30) ≈ P(z ≥ 2.375) using z = (x -
μ)/σ = 2.375.

Blooms: Apply
Difficulty: 3 Hard

98. For which binomial distribution would a normal approximation be most acceptable?

A. n = 50, π = 0.05

B. n = 100, π = 0.04
C. n = 40, π = 0.25
D. n = 400, π = 0.02
We want nπ ≥ 10 and n(1 - π) ≥ 10.

Blooms: Apply

99. Historically, the default rate on a certain type of commercial loan is 20 percent. If a bank makes 100 of these
loans, what is the approximate probability that at least 26 will result in default?

A. 0.2000
B. 0.0668
C. 0.0846
D. 0.0336
Set n = 100 and π = .20. Calculate μ = nπ = (100)(.20) = 20 and σ = [nπ(1 - π)]1/2 = [100(.20)(1 - .20)]1/2 = 4.
Use x = 25.5 (with the continuity correction) and calculate the binomial P(X ≥ 26) ≈ P(z ≥ 1.375) using z =
(x - μ)/σ = 1.375.

Blooms: Apply
Difficulty: 3 Hard

100. A company employs 300 employees. Each year, there is a 30 percent turnover rate for employees. We want
to do a normal approximation to the binomial distribution of the number of employees who leave each year.
For this normal approximation, the mean is ______ and the standard deviation is _____.

A. 90; 63
B. 90; 7.937
C. 90; 30
D. 90; 15
Use n = 300 and π = .30, and then calculate μ = nπ and σ = [nπ(1 - π)]1/2.

Blooms: Apply

101. The probability that a rental car will be stolen is 0.001. If 25,000 cars are rented from Hertz, what is the
normal approximation to the probability that fewer than 20 will be stolen?

A. .2577
B. .1335
C. .1128
D. .8335
Set n = 25,000 and π = .001. Calculate μ = nπ = (25000)(.001) = 25 and σ = [nπ(1 - π)]1/2 = [25000(.001)(1
- .001)]1/2 = 4.9975. Use x = 19.5 (with the continuity correction) and calculate the binomial P(X < 20) ≈ P(z
< -1.10055) using z = (x - μ)/σ = - 1.10055.

Blooms: Apply
Difficulty: 3 Hard

102. If adult male heights are normally distributed with a mean of 180 cm and a standard deviation of 7 cm, how
high should an aircraft lavatory door be to ensure that 99.9 percent of adult males will not have to stoop as
they enter?

A. 195.7 cm
B. 201.6 cm
C. 207.3 cm
D. 201.4 cm
With Excel we get =NORM.INV(.999,180,7) = 201.63, or Appendix C with z = 3.09.

Blooms: Apply

103. TotCo is developing a new deluxe baby bassinet. If the length of a newborn baby is normally distributed
with a mean of 50 cm and a standard deviation of 5 cm, what should be the interior length of the bassinet to
ensure that 99 percent of newborn babies will fit, with a safety margin of 15 cm on each end of the
bassinet?

A. 95.45 cm
B. 85.22 cm
C. 91.63 cm
D. 98.92 cm
With Excel we get =NORM.INV(.99,50,5)+30 = 91.63, or Appendix C with z = 2.33.

Blooms: Apply


A. 14.
B. 18.
C. 12.
D. 13.
Mean is (4 + 12 + 26)/3.

Blooms: Apply
Difficulty: 1 Easy


A. 4.082.
B. 3.775.
C. 3.024.
D. 2.994.
Set a = 0, b = 10, c = 20, and use the triangular standard deviation formula σ = [(a2 + b2 + c2 - ab - ac -
bc)/18]1/2 = 4.082.

Blooms: Apply


A. 23.
B. 30.
C. 33.
D. 35.
Mean is (5 + 23 + 62)/3.

Blooms: Apply
Difficulty: 1 Easy


A. 9.498.
B. 9.225.
C. 8.498.
D. 7.710.
Set a = 10, b = 20, c = 50, and use the triangular standard deviation formula σ = [(a2 + b2 + c2 - ab - ac -
bc)/18]1/2 = 8.498.

Blooms: Apply


A. The triangular distribution always has a single mode.

B. The mean of the triangular distribution is (a + b + c)/3.
C. The triangular distribution is right-skewed.
The triangular distribution may be skewed right or left, and is symmetric only if the mode is halfway
between a and c. Review properties of the triangular distribution.

Blooms: Remember

109. Bob used a triangular distribution of T(20, 30, 61) to represent his daily commute time (minutes). Which


B. The mode of the distribution exceeds the mean.
D. The midrange of the distribution is 40.5.
This triangular distribution is right-skewed. The mean is (20 + 30 + 61)/3 = 37, which exceeds the mode b =
30. It would be helpful to sketch a graph of the PDF.

Blooms: Apply
Difficulty: 3 Hard

110. Phyllis used a triangular distribution of T(10, 15, 20) to represent her daily commute time (minutes). Which


B. The mode of the distribution is at the mean.
D. The midrange of the distribution is 15.
The distribution is symmetric if the mode b lies halfway between the end points. In this example, (a + c)/2 =
(10 + 20)/2 = 15, so the mode b = 15 is halfway between the minimum and maximum.

Blooms: Apply

111. In a continuous distribution:

A. P(X < 5) is the same as P(X ≤ 5).

B. P(X < 5) is less than P(X ≤ 5).
C. P(X < 5) is more than P(X ≤ 5).
A point has no area in a continuous CDF.

Blooms: Understand

112. In a continuous distribution the

A. PDF is usually higher than the CDF.

B. CDF is used to find left-tail probabilities.
C. PDF shows the area under the curve.
D. CDF is usually the same as the PDF.
The CDF shows P(X ≤ x). Review definitions of PDF and CDF.

Blooms: Understand

113. If the mean waiting time for the next arrival is 12 minutes, what is the median waiting time?

A. 7.2 minutes

B. 8.3 minutes
C. 9.1 minutes
D. 12 minutes
Set λ = 1/12 minute per arrival and take logs of both sides of exp(-λx) = .50 to solve for x.

Blooms: Apply
Difficulty: 3 Hard

114. If the mean waiting time for the next arrival is 18 minutes, what is the first quartile (25th percentile) for
waiting times?

A. 13 minutes
B. 7.9 minutes
C. 5.2 minutes
D. 3.1 minutes
Set λ = 1/18 minute per arrival and take logs of both sides of exp(-λx) = .75 to solve for x.

Blooms: Apply
Difficulty: 3 Hard


A. Yes.
B. No.
C. It depends on x.
Area = 1/2 × base × height = .500, which is not 1, so it cannot be a PDF.

Blooms: Apply


A. Yes.
B. No.
C. It depends on x.
Area = base × height = 2, which is not 1, so it cannot be a PDF.

Blooms: Apply

117. The ages of job applicants for a security guard position are uniformly distributed between 25 and 65. Could
a 25-year-old job applicant be two standard deviations below the mean (or more than two standard
deviations)?

A. Yes.
B. No.
C. Impossible to determine from given information.
Since σ = [(65 - 25)2/12]1/2 = 11.54, we can see that 25 is not 2σ below the mean of 45.

Blooms: Apply
Difficulty: 3 Hard


A. .6444
B. .7514
C. .9245
D. .9850
Appendix C.2 gives 1 - P(z < -2.17) = 1 - .0150 = 0.9750 =1-NORM.S.DIST(-2.17,1).

Blooms: Apply


A. .4400
B. .3300
C. .2998
D. .2502
Appendix C.2. gives 1 - P(z < .44) = 1 - .6700 = .3300 =1-NORM.S.DIST(0.44,1).

Blooms: Apply


A. -1.98
B. -1.87
C. -1.75
D. -1.62
Appendix C.2 gives P(z < -1.75) = .0401 or use Excel =NORM.S.INV(0.04) = -1.75.

Blooms: Apply


A. -2.17
B. -2.09
C. -1.99
D. -1.94
Appendix C.2 gives P(z < -2.17) = .0150 or use Excel =NORM.S.INV(0.015) = -2.17.

Blooms: Apply


A. .0410
B. .0501
C. .0724
D. .0838
z = (440 - 400)/23 = 1.739, so Appendix C.2 gives 1 - P(z < 1.74) = 1 - .9591 = .0409, or from Excel =1-
NORM.DIST(440,400,23,1) = .0410.

Blooms: Apply
Difficulty: 3 Hard


A. .3811
B. .3527
C. .2299
D. .1940
z = (417 - 400)/23 = 0.7391, so Appendix C.2 gives 1 - P(z < 0.74) = 1 - .7704 = .2296, or from Excel =1-
NORM.DIST(417,400,23,1) = .2299.

Blooms: Apply
Difficulty: 3 Hard


A. 379.1
B. 362.2
C. 355.7
D. 347.6
From Appendix C.2 we get P(z < -1.645) = .05, so x = µ + zσ = 400 - 1.645(23) = 362.2, or from Excel
=NORM.INV(0.05,400,23) = 362.2.

Blooms: Apply
Difficulty: 3 Hard


A. 412.9
B. 426.7
C. 436.2
D. 440.3
From Appendix C.2 we get P(z > 1.75) = .0401, so x = µ + zσ = 400 + 1.75(23) = 440.3, or from Excel
=NORM.INV(0.96,400,23) = 440.3.

Blooms: Apply
Difficulty: 3 Hard

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Multiple Choice Questions

40. Events A and B are mutually exclusive when:

A. their joint probability is zero.

Review definition of mutually exclusive.

A. the sum of their probabilities is one.

Review definition of complementary events.

Review the rules of probability.

A. P(A) = .3, P(B) = .5, P(A∩B) = .4.

For independence, the product P(A)P(B) must equal P(A∩B).

A. If A and B are independent events, then P(B) = P(A)P(B).

Review the rules of probabilities.

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

This is a marginal probability P(V) = 40/200 = .20.

This is a conditional probability P(V|W) = 19/80.

This is a joint probability P(W and S) = 24/200.

Use the General Law of Addition P(A or M) = 100/200 + 50/200 - 25/200.

This is a marginal probability: P(A2) = 86/467.

This is a joint probability: P(A3 and B2) = 44/467.

This is a conditional probability: P(A2|B3) = 32/169.

This is a marginal probability: P(B) = 90/200.

Use the General Law of Addition: P(A or B) = 80/200 + 90/200 - 50/200.

This is a conditional probability: P(B|A) = 50/80.

This is a conditional probability: P(B'|A) = 30/80.

1 - P(F1∩F2∩F3) = 1 - (.05) (.05) (.05) = 1 - .000125 = .999875, so 3 servers will do.

This is a joint probability: P(L and R) = 39/124.

This is a joint probability: P(R∩L) = 39/124.

This is a conditional probability: P(W | M) = 18/31.

Use the General Law of Addition: P(L or W) = 93/124 + 72/124 - 54/124.

1 - P(F1∩F2∩F3) = 1 - (.02)(.02)(.02) = 1 - .000008 = .999992, so 3 servers will do.

This is a marginal probability: P(smoked) = 1122/4331.

This is a conditional probability: P(smoked | below high school) = 393/1033.

This is a joint probability: P(smoked and college) = 48/4331.

Use the General Law of Addition: 1122/4331 + 598/4331 - 48/4331.

This is a conditional probability: 635/756.

This is a conditional probability: 121/7561.

This is a joint probability: P(U and S) = 27/200.

This is a marginal probability: P(N | F) = 20/50 = .40.

This is a joint probability: P(G and N) = 27/200.

This is a marginal probability.

This is a conditional probability: P(R | L) = 5/30 = .167.

This is a conditional probability: P(P | I) = 35/70 = .500.

This is a marginal probability: P(E) = 300/1000 = .300.

This is a conditional probability: P(E | F) = 160/470 = .340.

This is a joint probability: P(A∩M) = 210/1000 = .210.

Use the General Law of Addition: P(F or G) = 470/1000 + 340/1000 - 160/1000.

This is a joint probability: P(F and E) = 160/1000 = .16.

X = the event that the price of stock X has increased

Use the definition for conditional probability.

Review Bayes' Theorem, and perhaps make a table or tree.

This is a joint probability. You must add the column frequencies.

You must first add the column frequencies.

Calculate the conditional probability 1 - 10/300 = .9667.

A. are always equal to one another.

Use the definition of conditional probability.

A. Only if P(A | B) = 0.10

A. P(A | B) = P(B | A)

Use the definition of conditional probability: P(A | B) = P(A∩B)/P(B).

A. P(A∩B) = 0.70.

Apply the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B).

A. A and B are mutually exclusive.

Apply the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B).